Saturday, November 30, 2013

10 Best Blue Chip Stocks For 2014

Some investors love nothing more than finding up-and-coming stocks that might make them a fortune overnight. Others are more interested in steady growth and the ability to sleep soundly at night. For those who fall into the more cautious group, blue-chip stocks hold special appeal. They probably won�� soar in value, but they boast a solid track record and tend to carry less risk than other equities.

So what are blue chips, exactly? Exact definitions vary, but the term generally applies to large, established corporations with a strong management team and consistent earnings growth. Think McDonald�� (NYSE:MCD), Coca Cola (NYSE:KO) and technology giant IBM (NYSE:IBM), just to name a few.

Many of these firms have paid a dividend for decades, which is an enticing feature for investors seeking a more immediate return on their investment. And while these payouts aren�� always huge, they tend to be more predictable than increases in share price.

Here are some tips for evaluating a blue-chip stock and finding out whether it�� a good addition to your portfolio.

10 Best Blue Chip Stocks For 2014: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

  • [By Monica Gerson]

    Colgate-Palmolive Co (NYSE: CL) is expected to report its Q3 earnings at $0.73 per share on revenue of $4.46 billion.

    Precision Castparts (NYSE: PCP) is projected to report its Q2 earnings at $2.83 per share on revenue of $2.36 billion.

  • [By Wallace Witkowski]

    Other earnings highlights in the coming week include Dow components McDonald�� Corp. (MCD) , DuPont (DD) , AT&T Inc. (T) , and Procter & Gamble Co. (PG) . Notable S&P 500 companies include Halliburton Co. (HAL) , Netflix Inc. (NFLX) �, Amgen Inc. (AMGN) �, TripAdvisor Inc. (TRIP) �, Amazon.com Inc. (AMZN) �, Colgate-Palmolive Co. (CL) �, Ford Motor Co. (F) �, Dow Chemical Co. (DOW) �, and United Parcel Service Inc. (UPS) �

  • [By Ong Kang Wei]

    Another example of such a product is Colgate-Palmolive (CL)'s Colgate toothpaste. I do not think I have to elaborate much here. Toothpaste is needed in our everyday life, and we will definitely have to buy more toothpaste after we have finished using a packet of it, ensuring that Colgate gets more and more sales over the years.

10 Best Blue Chip Stocks For 2014: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:
  • [By DailyFinance Staff]

    • Ever since Steve Ballmer announced that he'd be leaving his post as CEO of Microsoft (MSFT) within the next year, speculation has been rampant about who will take his place. The early favorite among the chattering class was ex-Nokia chief Stephen Elop, who has a history with Microsoft and is coming back to Redmond thanks to its purchase of Nokia's (NOK) phone business. But recently, Ford (F) CEO Alan Mulally has jumped to the top of the list. Mulally's no tech specialist, but he is a turnaround artist, which is exactly what the stagnant tech giant needs. • On the potential government shutdown, as of Friday morning, there's no visible movement on either side. The Senate is preparing to pass a stopgap measure that would keep the lights on for another 6 weeks, while House Republicans continue to insist they won't back down on their insistence that Democrats defund the Affordable Care Act. If nobody blinks before Tuesday, the shutdown begins. Stay tuned ... • One of the things we love about Martha Stewart is that she exemplifies a life most of us can only dream of -- with the perfectly decorated house, the exquisitely crafted meals, etc. Well, in some ways, Martha's just like us. She's been tweeting recently about her travails with a broken iPad. Of course, when it's who has gadget drama, the tweets go viral. • Out here in the real economy of the middle class, it sometimes feels like things aren't getting better, or if they are, it's not happening fast enough. We know it. We feel it too. But here's something to cheer you up: 19 charts that will restore your faith in the global economy. • Nike (NKE) just did it on the earnings front Thursday -- earnings soared by 38 percent last quarter, beating the Street's expectations. The only place where Nike isn't winning? China. • McDonald's (MCD), where everyone goes for a healthy lunch, says it will now allow customers to replace the fries in their value meals with a side salad, fr

  • [By Jeremy Bowman]

    McDonald's (NYSE: MCD  ) was another strong gainer, moving up 1.6% after bringing back Steve Easterbrook as Chief Global Brand Officer. Easterbrook had formerly overseen McDonald's Europe, the Golden Arches' biggest region, with 7,000 restaurants in 39 countries. The fast-food chain also tripled the pay for its former and current CEO, and was also receiving some negative publicity after an ad in Massachusetts came out that seemed to associate eating Big Macs with mental illness and depression. McDonald's immediately pulled the ad. �

  • [By Alyce Lomax]

    These figures are particularly impressive, given difficulties in the industry. Take former parent McDonald's (NYSE: MCD  ) , which reported results that analysts and investors found disappointing yesterday. The fast-food giant's comps increased an anemic 1%, and management disclosed "weak sales trends" with the warning that the rest of the year could remain difficult for its business.

  • [By Neha Marway]

    However, several industry observers feel that the chicken issue is not the sole reason for the quick service restaurant chain�� China woes. The food industry grew in China mainly because of the increasing disposable income of the middle class. However, now China�� middle income group has restricted their spending after the government�� strict measures. Additionally, KFC and other Western-based corporations including McDonald�� (MCD) and Burger King (BKW) are facing tremendous competition from local eateries of the economy.

Top 5 Undervalued Companies To Own In Right Now: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

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

    Not even Apple (NASDAQ: AAPL  ) is immune from the downturn. While the Mac maker doesn't rank in the top five globally, IDC estimates that Apple's domestic Mac shipments declined by 7.5%. That's still outpacing the broader market, and there have been other indications that iMac shipments are roaring back as the company overcomes supply constraints, but it still doesn't bode well for future Mac growth. The saving grace for Cupertino is that Apple relies much less on the PC market than its rivals, with Macs comprising just 13% of trailing-12-month sales.

  • [By Volcano Steve]

    Other companies such as TriQuint (TQNT) and Broadcom (BRCM) are reporting results with "strong mobile demand" and "higher-than-anticipated sales of cellular system-on-chip (SOC) and touch controllers." More famously, Apple (AAPL) has announced record sales for its ARM-inside iPhone 5S model introduced last month. Investors and analysts already knew that ARM reports royalty revenue a quarter in arrears, so any gains from iPhone 5S sales will not start to be seen until ARM´s next quarterly report and were not expected to be a factor in this report.

  • [By John Reeves]

    In the following video, Motley Fool contributor John Reeves takes a closer look at Apple's (NASDAQ: AAPL  ) fastest-growing business. The segment is iTunes/Software/Services, and it grew 25% year on year in the most recent quarter. Apple's management believes that its content is the very best in the industry. Consumers clearly love the content and are buying more of it. They're also buying the devices that deliver the content. John is very encouraged by the long-term trend.

  • [By Alex Dumortier, CFA]

    Apple is back on top
    As the Federal Reserve's monetary policy meeting got under way today, technology stocks led the broad market -- by a wide margin -- as the S&P 500's information technology sector increased 1.2%. (The runner-up, telecommunication services, managed only a 0.4% return.) Information technology was also the best-performing sector yesterday. The largest driver of those gains were shares of Apple (NASDAQ: AAPL  ) , which were up 2.9% today, for a 6.1% return on the week thus far. That two-day return has added $32.3 billion to the company's market capitalization, enough to wrest the title of most valuable company in the world back from ExxonMobil.

10 Best Blue Chip Stocks For 2014: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:
  • [By Maxx Chatsko]

    However, you would be hard-pressed to find any connection between falling smoking prevalence and share performance at Reynolds American (NYSE: RAI  ) , Lorriland (NYSE: LO  ) , Phillip Morris (NYSE: PM  ) , and Altria (NYSE: MO  ) . These companies are some of the best performers in the past decade. In fact, Altria is the best-performing stock of the last half-century!

  • [By GuruFocus]

    The decade low yield of tobacco stocks can be clearly seen from our new interactive charts, which are embedded below. The chart shows the dividend yield of three tobacco stocks: Reynolds American (RAI), Philip Morris International (PM) and British American Tobacco (BTI).

10 Best Blue Chip Stocks For 2014: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:
  • [By Tyler Crowe]

    After 15 years of testing and optimizing the technique, meaningful shale gas production finally took off in 2009. By then, companies had become adept at identifying high-potential locations and decreasing operating costs. The combination of all this expertise lowers the risk of drilling a dud well than in other shale deposits around the world. So when a company wants to grow its natural gas production, it is much more likely to look at U.S. shale than others. Both Chevron (NYSE: CVX  ) and ConocoPhillips (NYSE: COP  ) have announced that they intend to shift their capital expenditures more toward the U.S. than in riskier plays�abroad, and the lower risk�associated�with drilling the the U.S. is a large part of that decision.

  • [By Alex Planes]

    Tale of the tape
    Chevron (NYSE: CVX  ) has only been a current Dow component since 2008, but it first joined way back in 1930, when it was still Standard Oil of California. Chevron's dubious 1999 removal hindered the index's growth for years, but investors who held on enjoyed gains of nearly 150% before the oil supermajor was reinstated. Chevron has ranked as America's third largest company on the Fortune 500 for several years running, a position befitting one of the largest integrated oil and gas companies in the world.

  • [By Matt Thalman]

    As a whole, the energy sector slid lower today, while Chevron (NYSE: CVX  ) dropped 1.09% and ExxonMobil (NYSE: XOM  ) declined 0.8%. The decline came as crude prices hardly fell, but natural gas moved lower by 2.55%. Last week's U.S. crude oil inventory report has caused traders some concern as inventories fell; the price of oil also moved lower, which doesn't follow standard supply and demand theories. Furthermore, both Chevron and Exxon are scheduled to report earnings later in the week, so that could be playing on investors' minds as the price of oil highly affects the company's earnings per share. As earnings are released, investors should be watching each company's inventories and what each expects on the production side in the coming months as that will likely also affect the price of oil and earnings down the road. �

10 Best Blue Chip Stocks For 2014: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:
  • [By Dan Caplinger]

    IBM (NYSE: IBM  ) , down 2%
    IBM's woes have come from concerns about the tech giant's ability to sustain its revenue levels. The company reported sales declines in both of its first two quarterly reports for 2013, and despite raising its guidance for the remainder of the year in its June-quarter results, IBM remains troubled by extremely tough competition in the increasingly popular big data arena. Even though IBM still has one of the most valuable brands in the world, it nevertheless needs to turn its sales slump around in order for its stock to follow suit.

10 Best Blue Chip Stocks For 2014: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:
  • [By Chris Hill]

    Visa (NYSE: V  ) and Under Armour (NYSE: UA  ) hit new all-time highs. General Motors (NYSE: GM  ) appears to be turning the corner in Europe. And second-quarter profits for Crocs (NASDAQ: CROX  ) fell a whopping 43%. In this installment of Investor Beat, Motley Fool analysts David Hanson and Jason Moser discuss four stocks making moves on Thursday.

Friday, November 29, 2013

Netflix Gets the Last Laugh, Again

Modern Family is apparently a dud in syndication, and no one is laughing harder than Netflix (NASDAQ: NFLX  ) .

It seems that consumer appetite for the show's reruns isn't as strong as Comcast's (NASDAQ: CMCSA  ) USA Network -- the eventual winner of the comedy's syndication rights -- was expecting. It's been airing the show as many as five nights a week since the fall season began, and the early Nielsen ratings aren't encouraging. USA's audience is 40% lower than it was a year earlier when it was running NCIS and Law & Order: SVU reruns during the same slot.

Ouch! 

Digital distribution was front and center in the bidding war for the popular comedy's syndication rights two years ago. Time Warner's (NYSE: TWX  ) Turner Broadcasting vocally dropped out of contention, arguing that the show was too exposed in cyberspace. Hulu and Disney's (NYSE: DIS  ) ABC.com -- but not Netflix -- were streaming earlier episodes. News Corp. (NASDAQ: NWSA  ) COO Chase Carey backed Time Warner's move to pass on the sitcom that had become huge for Disney's ABC.

"A channel's right to say: If I'm going to pay a lot of money for Modern Family I want to buy enough rights so that it's not showing up on a competing platform," Carey said two years ago. "I would not be buying syndication rights to an expensive piece of programming and let it reside on Netflix for 20 million homes."

Carey wasn't knocking the show itself. News Corp. was the show's producer. He was lamenting the growing popularity of streaming earlier seasons of hit shows. Why would someone want to pay up for syndication of earlier episodes when they are readily available -- often without commercials -- through streaming services? This probably played a major factor in keeping Modern Family off of Netflix. It didn't pay off. 

A lot has changed in two years. For starters, Netflix is no longer reaching 20 million homes. It has twice as many subscribers worldwide, with more than 31 million of those as domestic streaming accounts. Netflix has also resulted in ratings increases for shows still on the air -- not decreases -- as we've seen with Breaking Bad and Mad Men. Syndication is an entirely different animal, but it needs to be pointed out that several earlier seasons of Law & Order: SVU -- the show that held up better than Modern Family for USA Network last year -- are streaming on Netflix. 

Studios and cable networks better learn -- sooner or later -- that Netflix is more a solution than a problem.

Top 5 Performing Companies To Watch In Right Now

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Thursday, November 28, 2013

Top Heal Care Companies To Watch For 2014

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 Broadridge Financial Solutions (NYSE: BR  ) , whose recent revenue and earnings are plotted below.

Top Heal Care Companies To Watch For 2014: Genesis Energy LP (GEL)

Genesis Energy, L.P. (Genesis) is a limited partnership focused on the midstream segment of the oil and gas industry in the Gulf Coast region of the United States, primarily Texas, Louisiana, Arkansas, Mississippi, Alabama, Florida and in the Gulf of Mexico. The Company has a portfolio of customers, operations and assets, including pipelines, refinery-related plants, storage tanks and terminals, barges and trucks. Genesis provides an integrated range of services to refineries, oil, natural gas and carbon dioxide (CO2) producers, industrial and commercial enterprises that use sodium hydrosulfide (NaHS) and caustic soda, and businesses that use CO2 and other industrial gases. The Company operates in three segments: Pipeline Transportation, Refinery Services, and Supply and Logistics. In August 2011, the Company acquired black oil barge transportation business of Florida Marine Transporters, Inc. In November 2011, it acquired a 90% interest in a 3,500 barrel per day refinery located in Converse County, Wyoming, including 300 miles of abandoned 3- 6 pipeline. On January 3, 2012, it acquired interests in several Gulf of Mexico crude oil pipeline systems, including its 28% interest in the Poseidon pipeline system, its 29% interest in the Odyssey pipeline system, and its 23% interest in the Eugene Island pipeline system. In August 2013, the Company announced that it has completed the acquisition of all the assets of the downstream transportation business of Hornbeck Offshore Transportation, LLC (Hornbeck).

Pipeline Transportation

The Company transports crude oil and carbon dioxide (CO2) for others for a fee in the Gulf Coast region of the United States through approximately 550 miles of pipeline. Its Pipeline Transportation segment owns and operates three crude oil common carrier pipelines and two CO2 pipelines. Its 235-mile Mississippi System provides shippers of crude oil in Mississippi indirect access to refineries, pipelines, storage terminals and other crude oil infrastructure ! located in the Midwest. Its 100-mile Jay System originates in southern Alabama and the panhandle of Florida and provides crude oil shippers access to refineries, pipelines and storage near Mobile, Alabama. The Company�� 90-mile Texas System transports crude oil from West Columbia to several delivery points near Houston. Its crude oil pipeline systems include access to a total of approximately 0.7 million barrels of crude oil storage.

The Company�� Free State Pipeline is an 86-mile, 20 CO2 pipelines that extends from CO2 source fields near Jackson, Mississippi, to oil fields in eastern Mississippi. It has a twenty-year transportation services agreement (through 2028) related to the transportation of CO2 on its Free State Pipeline.

Refinery Services

Genesis provides services to eight refining operations located in Texas, Louisiana and Arkansas, which operates storage and transportation assets in relation to its business and sell NaHS and caustic soda to industrial and commercial companies. The refinery services involve processing refiner�� sulfur (sour) gas streams to remove the sulfur. The refinery services also include terminals and it utilizes railcars, ships, barges and trucks to transport product. Its contracts are long-term in nature and have an average remaining term of four years.

Supply and Logistics

The Company provides services to Gulf Coast oil and gas producers and refineries through a combination of purchasing, transporting, storing, blending and marketing of crude oil and refined products, primarily fuel oil. It has access to a range of more than 250 trucks, 350 trailers and 50 barges with 1.5 million barrels of terminal storage capacity in multiple locations along the Gulf Coast, as well as capacity associated with its three common carrier crude oil pipelines.

Advisors' Opinion:
  • [By Aimee Duffy]

    Distributions are incredibly important to master limited partnerships -- they are the reason many investors buy in, and ultimately what drive the market performance for this asset class. As news of distribution increases trickle in for the third quarter, Fool.com contributor Aimee Duffy takes a look at the payouts from Genesis Energy (NYSE: GEL  ) , Plains All American Pipeline (NYSE: PAA  ) , and Memorial Production Partners (NASDAQ: MEMP  ) , as all three MLPs are leading the way with the biggest distribution increases.

  • [By Matt DiLallo]

    Genesis Energy (NYSE: GEL  )
    The final stock to get on your dividend watchlist is Genesis Energy. The company's business is split between pipeline transportation, refinery services, and supply and logistics, as you can see on the slide below. In addition to the assets it already has on the books, Genesis has a number of projects in the pipeline to drive future growth. Genesis estimates that these projects will enable it to provide distribution growth to investors in the low double digits well into the future. Genesis has quite the history to back those estimates up as the company has 31 consecutive quarters of distribution increases, including 26 which were more than 10%. That's what makes this dividend-paying stock one to watch.

  • [By Seth Jayson]

    Genesis Energy (NYSE: GEL  ) is expected to report Q2 earnings around July 9. Here's what Wall Street wants to see:

    The 10-second takeaway
    Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Genesis Energy's revenues will grow 30.3% and EPS will grow 52.2%.

  • [By Eric Volkman]

    Genesis Energy (NYSE: GEL  ) unitholders will take home a bit more money in dividends compared with previous periods. The company has declared its latest disbursement, which is to be $0.51 per common unit, to be handed out on Aug. 14 to shareholders of record as of Aug. 1. That amount is a shade above Genesis Energy's previous distribution of $0.4975 per share, which was paid in mid-May.

Top Heal Care Companies To Watch For 2014: First Horizon National Corp (FHN)

First Horizon National Corporation (FHN), incorporated in 1968, is a bank holding company. The Company provides financial services through its subsidiary, First Tennessee Bank National Association (the Bank), and its subsidiaries. The Company�� two brands First Tennessee and FTN Financial provide customers with a range of products and services. First Tennessee provides retail and commercial banking services throughout Tennessee. FTN Financial (FTNF) is engaged in fixed income sales, trading, and strategies for institutional clients in the United States and abroad. FHN has four operating business segments: regional banking, capital markets, corporate, and non-strategic. As of December 31, 2011, the Bank had $16.4 billion in total deposits and $16 billion in total net loans. As of December 31, 2011, the Company�� subsidiaries had over 200 business locations in 17 the United States states, Hong Kong, and Tokyo, excluding off-premises automated teller machines (ATMs). As of December 31, 2011, the Bank had 183 branch locations in four states, which include 172 branches in metropolitan areas of Tennessee; two branches in northwestern Georgia; seven branches in northwestern Mississippi, and two branches in North Carolina. As of December 31, 2011, FTN Financial products and services were offered through 18 offices in total, including 16 offices in 14 states plus an office in each of Hong Kong and Tokyo.

The regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customers in Tennessee and surrounding markets. Regional banking provides investments, financial planning, trust services and asset management, credit card, cash management, and first lien mortgage originations within the Tennessee footprint. In addition, the regional banking segment includes correspondent banking, which provides credit, depository, and other banking related services to other financial institutions.

The capital markets se! gment consists of fixed income sales, trading, and strategies for institutional clients in the United States and abroad, as well as loan sales, portfolio advisory, and derivative sales. The corporate segment consists of gains on the extinguishment of debt, unallocated corporate expenses, expense on subordinated debt issuances and preferred stock, bank-owned life insurance, unallocated interest income associated with excess equity, net impact of raising incremental capital, revenue and expense associated with deferred compensation plans, funds management, low income housing investment activities, and charges related to restructuring, repositioning, and efficiency. The non-strategic segment consists of the wind-down national consumer lending activities, legacy mortgage banking elements, including servicing fees, and the associated ancillary revenues and expenses related to these businesses. Non-strategic also includes the wind-down trust preferred loan portfolio and exited businesses along with the associated restructuring, repositioning, and efficiency charges.

As of December 31, 2011, the Company provided services through its subsidiaries, which include general banking services for consumers, businesses, financial institutions, and governments; through FTN Financial fixed income sales and trading, underwriting of bank, loan sales, advisory services and derivative sales; discount brokerage and full-service brokerage; correspondent banking; transaction processing, such as nationwide check clearing services and remittance processing; trust, fiduciary, and agency services; credit card products; equipment finance; investment and financial advisory services; mutual fund sales as agent; retail insurance sales as agent, and mortgage banking services.

As of December 31, 2011, the commercial, financial, and industrial (C&I) portfolio was eight billion dollars, and is consisted of loans used for general business purposes, and consisted of relationship customers in Tennessee and certain n! eighborin! g states, which are managed within the regional bank. Products include working capital lines of credit, term loan financing of owner-occupied real estate and fixed assets, and trade credit enhancement through letters of credit. As of December 31, 2011, the unpaid principal balance (UPB) of trust preferred loans totaled $447.2 million with the UPB of other bank-related loans totaling approximately $161.8 million. The commercial real estate portfolio includes both financings for commercial construction and non-construction loans. This portfolio is segregated between income commercial real estate (CRE) loans which contain loans, lines, and letters of credit to commercial real estate developers for the construction and mini- permanent financing of income-producing real estate, and residential CRE loans. The residential CRE portfolio includes loans to residential builders and developers for the purpose of constructing single-family detached homes, condominiums, and town homes. As of December 31, 2011, the residential CRE portfolio was $.1 billion. As of December 31, 2011, the consumer real estate portfolio was $5.3 billion, and is composed of home equity lines and installment loans. As of December 31, 2011, the credit card and other portfolios were $.3 billion, and primarily include credit card receivables, automobile loans, and over-the-counter (OTC) construction loans and other consumer related credits.

FHN�� investment portfolio consists of debt securities, including government agency issued mortgage-backed securities (MBS) and government agency issued collateralized mortgage obligations (CMO). During the year ended December 31, 2011, Government agency issued MBS and CMO, and other agencies averaged $2.9 billion. During 2011, the United States treasury securities and municipal bonds averaged $79.5 million. During 2011, investments in equity securities averaged $222.3 million.

During 2011, short-term funds (certificates of deposit greater than $100,000, federal funds purchased (! FFP), sec! urities sold under agreements to repurchase, trading liabilities, and other short-term borrowings) averaged $3.6 billion. During 2011, other borrowings increased to $.3 billion. Term borrowings include senior and subordinated borrowings and advances with original maturities greater than one year. During 2011, average term borrowings averaged $2.6 billion.

The Company competes with Regions Bank, SunTrust Bank, Wells Fargo Bank N.A., Bank of America N.A., and Pinnacle National Bank.

Advisors' Opinion:
  • [By Eric Volkman]

    After the close of trading Friday, the S&P 500 will include Pfizer spinoff Zoetis (NYSE: ZTS  ) . The stock replaces First Horizon National (NYSE: FHN  ) , which is to find a new home on the S&P MidCap 400.

  • [By Monica Gerson]

    First Horizon National (NYSE: FHN) is estimated to report its Q3 earnings at $0.18 per share on revenue of $307.14 million.

    Laboratory Corp. of America Holdings (NYSE: LH) is expected to report its Q3 earnings at $1.80 per share on revenue of $1.45 billion.

  • [By Sean Williams]

    Finally, regional bank First Horizon National (NYSE: FHN  ) , which has banking branches throughout Tennessee, added 4.2% just a day after paying shareholders a $0.05 quarterly dividend. Like Genuine Parts, there is no company specific news driving First Horizon higher, but the prospect for a higher net interest margin because of higher interest rates is certainly adding a boost to banks like First Horizon that rely on traditional loan and deposit growth. But as my Foolish colleague John Maxfield recently pointed out, you may want to keep your expectations for First Horizon tempered in the interim.

  • [By John Maxfield]

    Given that you clicked on this article, it seems safe to assume you either own stock in First Horizon National (NYSE: FHN  ) or are considering buying shares in the near future. If so, then you've come to the right place. The table below reveals the nine most critical numbers that investors need to know about First Horizon stock before deciding whether to buy, sell, or hold it.

Best Clean Energy Stocks To Own Right Now: Nevada Gold Corp (NVGC)

Nevada Gold Corp., incorporated on May 31, 2011, is an exploration-stage company. The Company is primarily engaged in the acquisition and exploration of mining properties.

The Company has an option to acquire certain claims located the Long Canyon Gold Trend of Northern Nevada State. As of February 28, 2013, the Company had no revenue.

Top Heal Care Companies To Watch For 2014: China Minzhong Food Corp Ltd (K2N.SI)

China Minzhong Food Corporation Limited, an investment holding company, operates as an integrated vegetable processing company. It cultivates, produces, and sells processed and fresh vegetables. The company�s processed vegetables include air-dried, freeze-dried, fresh-packed, and brined products, as well as fruit and vegetable juices, vermicelli, water-boiled vegetables, and other products. It also offers fresh vegetable products and mushroom spores. The company sells its products in 26 countries and regions, including the Americas, Asia, and Europe. China Minzhong Food Corporation Limited was founded in 1971 and is headquartered in Putian, the People's Republic of China.

Top Heal Care Companies To Watch For 2014: Body Central Corp.(BODY)

Body Central Corp. operates as a specialty retailer of young women's apparel and accessories in the south, mid-Atlantic, and midwest regions of the United States. The company operates specialty apparel stores under the Body Central and Body Shop banners, as well as a direct business of its Body Central catalog and e-commerce Website at bodyc.com. Its stores feature an assortment of tops, dresses, bottoms, jewelry, accessories, and shoes under Body Central and Lipstick labels. As of March 8, 2012 it operated 241 specialty apparel stores in 24 states. The company, formerly known as Body Central Acquisition Corp., was founded in 1972 and is headquartered in Jacksonville, Florida.

Advisors' Opinion:
  • [By WWW.DAILYFINANCE.COM]

    Richard Drew/AP NEW YORK -- The stock market started November on a strong note as investors reacted to an expansion in U.S. manufacturing last month. The improvement came during what could have been a difficult month for the U.S. economy, with a partial government shutdown that lasted 16 days and a narrowly averted default on the U.S. government's debt, which could have rattled financial markets. "With what happened in the last two months, it's amazing how strong this market has been," said Bob Doll, chief equity strategist at Nuveen Asset Management. The Institute for Supply Management reported that its manufacturing index increased to 56.4, the highest level since April 2011. That was better than the 55.1 figure economists were expecting, according financial data provider FactSet. The Dow Jones industrial average (^DJI) rose 69.80 points, or 0.5 percent, to 15,615.55. The Standard & Poor's 500 index (^GPSC) rose 5.10 points, or 0.3 percent, to 1,761.64. The Nasdaq composite (^IXIC) rose 2.34 points, or 0.1 percent, to 3,922.04. Energy stocks lagged the market after Chevron (CVX) reported that its third-quarter income fell 6 percent, missing analysts' estimates, due to weakness in the company's oil refining business. Chevron fell $1.95, or 1.6 percent, to $118.01. The energy sector was also weighed down by a drop in the price of oil. Crude oil fell $1.77, or 1.8 percent, to $94.61 a barrel. The positive start to this month's trading comes after a strong October for the stock market. The S&P 500 closed at a record high seven times during the month, most recently on Tuesday. It ended October with a gain of 4.5 percent. However, some investors have expressed skepticism that stocks can keep up this rapid pace pace heading into the last two months of the year. The S&P 500 is up 23 percent so far this year, while the average annual return on the S&P 500 is around 8 percent. Stocks are also starting to look expensive by some measures. Investo

  • [By Lauren Pollock]

    Body Central Corp.(BODY) swung to a steeper-than-expected third-quarter loss, hurt by a sharp drop in same-store sales and gross margins, sending shares of the women’s clothing retailer down 18% to $4.60 in premarket trading.

  • [By John Udovich]

    As we approach Black Friday, small cap apparel retail stocks�Body Central Corp (NASDAQ: BODY), Abercrombie & Fitch Co. (NYSE: ANF) and Francesca's Holdings Corp (NASDAQ: FRAN) have the dubious distinction of being the sector�� worst performing stocks (according to Finviz.com) as they are down 62.8%, 29.5% and 26.4%, respectively, since the start of the year (see my previous article: This Year�� Best Performing Small Cap Apparel Retail Stocks? CACH, SMRT, PSUN & DXLG). With that performance in mind, what�sort of performance should�investors and traders alike expect from these apparel retail dogs as we head into Black Friday and the all important holiday season? Here is what you need to be aware of:

  • [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 Body Central (Nasdaq: BODY  ) , whose recent revenue and earnings are plotted below.

Wednesday, November 27, 2013

Rogers Beats BCE In NHL Rights Bidding Battle: Corporate Canada

Nadir Mohamed has been overshadowed for much of his tenure as head of Rogers Communications Inc. (RCI/B) by the dealmaking of his main rival, George Cope at BCE Inc. (BCE)

Just six days before he retires, Mohamed has struck back, outbidding Cope with a C$5.2 billion ($4.9 billion) agreement for broadcast and digital rights to National Hockey League games in Canada over the next 12 years.

Mohamed, 57, told reporters yesterday in Toronto that the deal, the biggest in his five years as chief executive officer of Canada's largest wireless provider, will provide fresh revenue from sports content and be immediately accretive to earnings. It also deprives BCE's TSN network of national rights to Canada's favorite sport.

"It's a spectacular deal for Rogers," said Lee Berke, president of LHB Sports, Entertainment and Media, whose sports consulting firm is based in Scarsdale, New York. "Their competition from a telco standpoint, from a network standpoint - - TSN -- they've eliminated them. It's total control."

Rogers is betting that the broadcast rights, starting in the 2014-2015 hockey season, will provide additional revenue from advertisers and consumers as wireless users increasingly watch sports and follow their favorite teams on smartphones and tablets. In the U.S., sports broadcaster ESPN Inc. said 36 percent of its digital users in October only accessed content from such handheld devices.

Buying Spree

NHL hockey nets about C$100 million in advertising revenue for CBC in a year, a third of its total, Wade Rowland, a professor at York University in Toronto and author of a book on the public broadcaster's budget, said today.

Montreal-based BCE has followed a similar strategy, investing more than C$7 billion to add assets including TSN, which it bought along with the CTV network for C$1.3 billion plus debt in 2011. Cope, who leads Canada's No. 2 wireless operator, also added content by purchasing Astral Media Inc. for C$3.2 billion in July.

Mohamed had been less active on the deals front until he teamed up with BCE in 2011 to buy a majority stake in Maple Leaf Sports & Entertainment Ltd. That deal, which closed in August, 2012, gave Rogers joint ownership of the Toronto Maple Leafs, the NHL's most valuable team, as well as the Toronto Raptors of the National Basketball Association.

Bell Outbid

Top Penny Stocks For 2014

Rogers and BCE each paid C$533 million for a 37.5 percent stake. Rogers then agreed to buy Score Media Inc. that same month for C$167 million.

The MLSE deal has probably already paid off for the two companies, said Richard Peddie, former CEO of Maple Leaf Sports.

"Pro sports broadcast rights continue to escalate," he said in an e-mail. "Proves again why Bell & Rogers got a great deal buying MLSE."

Rogers slipped 1.2 percent to C$46.23 at 4 p.m. in Toronto, the most in more than a month. BCE fell less than 1 percent to C$46.54. Rogers has climbed 2.4 percent this year, compared with BCE's 9.2 percent gain.

Bell, as the main BCE brand name is known, said yesterday it was outbid by Rogers for the NHL rights. NHL Commissioner Gary Bettman declined to comment yesterday on the competing bids that came up short.

Appropriate Bid

"We submitted a bid we believed was valuable for the NHL and appropriate for our business," Scott Henderson, a spokesman for Bell Media, said in an e-mail yesterday. "We're committed to TSN remaining Canada's sports leader."

Bettman, speaking alongside Mohamed yesterday, said Rogers's ability to clinch the rights wasn't just about price. "The Rogers people should be commended for their aggressiveness and strategy," he said.

Rogers's first annual payment to the league will be about C$300 million, climbing to the mid-C$500 million range in the final year of the deal. The Toronto-based company said that it reached separate sublicensing agreements with the Canadian Broadcasting Corp. to continue to broadcast its traditional "Hockey Night in Canada" program on Saturdays, and with Quebecor Media Inc.'s TVA for all French-language national broadcasting rights.

Rogers, which already owns Sportsnet cable television, said the cost of the payments to the NHL will be partly defrayed by the CBC and TVA sublicensing deals. Mohamed said that the agreement will be "accretive from the get-go" to Rogers' profitability. Rogers had net income before one time items of C$1.73 billion last year, on revenue of C$12.5 billion.

Earnings Impact

Keith Pelley, the head of Rogers' media unit who joined from CTV in 2010, told reporters that the deal is "self-financing" by creating fresh revenue that will cover the annual payments.

Advertising revenue will probably make up some but not all of those costs, said Peddie, the former head of Maple Leaf Sports. Rogers can make up the difference with higher cable subscriber fees, and by offering new premium hockey packages for hardcore fans, he said.

Still, Rogers is paying more than double what U.S. broadcasters paid the league for local rights. The NHL's games are broadcast in the U.S. under a 10-year contract signed with Comcast Corp.'s NBC and Versus networks in 2011. That agreement was worth $2 billion, people with knowledge of the transaction said at the time.

'Awful Lot'

"Five billion is an awful lot," said Ian Nakamoto, director of research with MacDougall MacDougall & MacTier Inc. in Toronto. "I'm not sure if it adds that much warmth and comfort to me." Nakamoto's firm manages about C$4.7 billion, including Bell and Rogers shares.

"This NHL deal adds content to their assets, but I don't see it as a big deal," he said.

Bell and TSN will still broadcast 10 Maple Leafs games next season and 26 games starting in 2015 and has partnerships with teams in Montreal, Ottawa and Winnipeg, along with Hockey Canada and the World Junior Championships, said Bell's Scott Henderson. In addition to its stake in the Leafs, BCE also has a stake in the Montreal Canadiens that preserve its regional broadcasting rights for those teams.

Guy Laurence, who used to run Vodafone Group Plc (VOD)'s U.K. business, replaces Mohamed on Dec. 2, capping his tenure as CEO with a flourish.

"It's remarkable and a testament to Rogers how quickly this came together," said Bettman.

Tuesday, November 26, 2013

U.S. oil supply looks vulnerable 40 years after…

In 1973, Archie Bunker's All in the Family topped TV rankings and Tony Orlando's Tie a Yellow Ribbon 'Round the Ole Oak Tree led Billboard charts. On the economic front, the United States depended heavily on foreign oil.

This year, Modern Family espouses gay marriage and Miley "twerking" Cyrus' Wrecking Ball sells big. But on energy, the U.S. still relies on imports for the same share of its petroleum use: 35%.

How different are we? While the nation's social and economic fiber has changed dramatically, including a recent surge in energy production, could the oil shock of 40 years ago happen again? Today's continuing dependence suggests, yes, unfortunately, it could.

On Oct. 20, 1973, as U.S. oil production stood near its 1970 peak, Arab countries banned oil exports to the United States in retaliation for its support of Israel during the Yom Kippur War. The five-month embargo quadrupled energy prices and pummeled the U.S. economy, causing consumers to wait hours in long lines at gas stations.

The embargo helped launched a U.S. energy revolution as President Nixon, and every successor since, called for "energy independence." Conservation measures ensued, including a doubling of vehicle fuel efficiency standards, a national 55 mile-per-hour speed limit, pleas for fewer Christmas lights and a "Don't be Fuelish" ad campaign. Renewable energy got a boost during President Carter's term, when solar panels were installed on the White House roof.

Some of these efforts petered out in the 1980s and 1990s, as Americans recovered from the oil shock, but others held. The Strategic Petroleum Reserve and the Department of Energy were established in the mid-1970s, when U.S. funding increased for alternate drilling techniques such as hydraulic fracturing (or fracking) that are expected soon to make the U.S. the world's largest energy producer.

"We've come a long way," Leon Panetta, President Obama's Defense secretary from July 2011 to February 2013, tells USA TODAY, citing a push to! diversify the U.S. energy portfolio.

Hot Performing Companies To Buy For 2014

Henry Kissinger, who was President Nixon's secretary of State during the 1973 oil crisis, agrees. "We're better prepared now, by far," he told an energy conference last week in Washington, D.C. If Saudi Arabia cut its production and exports, he said the U.S. could buy elsewhere, adding: "They've lost the opportunity to blackmail us."

Yet not all has changed.

"We remain very vulnerable," Panetta says, adding it wouldn't take much for members of the Organization of Petroleum Exporting Countries (OPEC) — which launched the 1973 embargo — or terrorist groups like al-Qaeda to disrupt supplies. He says the U.S. is using less oil per capita than decades ago and relying on the Middle East for a smaller share of its imports, but those shifts almost don't matter.

World oil prices, which largely determine what Americans pay at the pump, remain high, because developing countries including China and India are driving up demand. With global oil supplies so tight as a result, even a small disruption rattles the markets and causes price spikes.

That's why, despite a 50% increase in U.S. oil production since 2008, the price for a regular gallon of gas remains so high. It costs, in inflation-adjusted dollars, twice as much as 40 years ago.

"We're still part of a global oil market," says Daniel Yergin oil historian and author of The Quest: Energy Security and the Remaking of the Modern World. He notes petroleum imports have fallen since their peak in 2005, when they accounted for 60% of what Americans used. But they've simply retreated to the same share of consumption as in 1973.

The Department of Energy expects imports will continue to fall as U.S. oil production increases because of fracking. This controversial drilling process blasts huge quantities of water, mixed with sand and chemicals, under! ground to! break apart shale formations and release oil as well as natural gas.

"We won't become energy independent, but we'll become less energy dependent," Yergin says.

That's not enough to inoculate the U.S. from future oil shocks. "Despite the domestic oil boom, America's oil security is only middle-of-the-road," Robbie Diamond of Securing America's Future Energy (SAFE), a non-partisan group aimed at reducing U.S. dependency, said this month in releasing a ranking of 13 countries' oil security. The United States ranked fifth best, after Japan (No. 1), United Kingdom, Canada and Germany.

The report says the U.S. is making strides, including Obama's plan to nearly double the fuel efficiency of new cars and light trucks — to 54 miles per gallon — by model year 2025. Still, regardless of efficiency gains, it says Americans use more oil than China, Japan and Russia combined, accounting for 20% of global consumption.

"Our nation's oil dependence leaves the economy dangerously exposed to high and volatile oil prices," says Diamond, the group's chief executive officer.

While an oil shock may rock the economy and influence U.S foreign policy, a parallel threat to the environment has emerged since the 1973 embargo: climate change.

"That was not yet apparent," Kissinger said at the SAFE-organized conference, adding that even administration critics didn't voice concerns about oil use's environmental impacts in the 1970s.

In 1988, climate scientist James Hansen warned a Senate panel about the climate dangers posed by the heat-trapping greenhouse gas emissions from the burning of oil, gas and coal. Hundreds of peer-reviewed scientific studies have since shown that rising temperatures are increasing the risk and severity of heat waves, downpours, drought and wildfire.

The United States can't go it alone any more on climate change than it can on the intertwined issue of oil. Case in point: Its carbon emissions are barely rising in recent years, but global emissions — l! argely be! cause of China and India's use of oil and coal — are soaring.

Panetta says climate change adds to the reasons why the United States should lead world efforts to reduce reliance on oil. He says such dependence can "influence" decisions such as whether to wage war in the Persian Gulf, adding the U.S. would probably have imposed sanctions on Iran earlier if it weren't concerned about the impact on oil supplies.

Yergin expects future energy disruptions, noting the Middle East is still in turmoil. He says although Saudi Arabia — the center of the 1973 embargo — is now America's strongest Arab ally, Iran is now an adversary. Forty years ago, Iran didn't participate in the embargo, because it was one of the strongest U.S. allies in the Middle East.

"Americans have a short memory," Panetta says, adding they need to be reminded of the myriad costs and lingering risks associated with oil dependence — as shown by the 1973 oil embargo.

1973 OIL EMBARGO AND 1970S AFTERMATH

1973: Libya, Saudi Arabia and other members of OPEC (Organization of Petroleum Exporting Countries) stop oil shipments to the United States in response to U.S. support of Israel. Oil prices quadruple, gas lines form across the U.S. and President Nixon calls for "energy independence."

1974: U.S. approves a national maximum speed limit of 55 miles per hour through the Emergency Highway Energy Conservation Act. Year-round daylight saving time began in Jan. 1974, but because of protests that children were leaving for school in the dark, pre-existing daylight savings rules were restored in 1976.

1975: U.S. establishes the Strategic Petroleum Reserve. President Ford signs bill creating first fuel efficiency standards, requiring auto companies to double fleet-wide averages by 1985.

1977: President Carter called the energy crisis the "moral equivalent of war" and established the U.S. Department of Energy.

1979: Second oil crisis hits when Shah of Iran is overthrown and Iranian revolution begi! ns. An en! circling of the U.S. Capitol by 3,000 tractors (tractorcade) calls for U.S. commitment to ethanol. Three Mile Island nuclear plant accident dims U.S. support for nuclear power. Carter install solar panels on the roof of the White House.

Monday, November 25, 2013

Best Undervalued Companies To Buy Right Now

We buy and patiently harvest a broadly diversified portfolio of undervalued stocks to be held for their long-term appreciation potential. Twenty words encompassing 137 characters.

If we had a Twitter account, we could actually fit our entire investment strategy into just one Tweet! Of course, these days, many investors might lose interest by word 10, as attention spans have shortened dramatically given the exponential growth of financial information available via mouse-click. Alas, the byproduct of so much readily available content is that stories must often make outlandish claims to rise above the din. Few seem interested in learning about disciplined investment approaches that have served their long-term followers well, but should a piece offer a Dow 36,000 or Dow 3,600 headline, or perhaps mention a well-known celebrity, folks may take notice.

Best Undervalued Companies To Buy Right Now: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:
  • [By Oliver Pursche]

    European large-cap pharmaceuticals like Novartis (NVS) �and Bristol Meyers Squibb (BMY) �count amongst some of our favorite stocks right now, as do U.S. multinationals that are growing revenue and margins in Asia ��Tupperware (TUP) �is a shining example. Stay away from utilities and energy stocks, as they are likely to be the laggards over the next year.

  • [By John Udovich]

    Everyone is familiar with�the Tupperware brand from�consumer products stock Tupperware Brands Corporation (NYSE: TUP) and you are probably familiar with the brands�of mid cap stock Jarden Corp (NYSE: JAH) along with small cap stocks Libbey Inc (NYSEMKT: LBY) and Lifetime Brands Inc (NASDAQ: LCUT); but what about the stocks themselves? Chances are, their brands or products are right under your nose at home and you probably don�� know anything about the mid cap or small cap stock behind them.

Best Undervalued Companies To Buy Right Now: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:
  • [By Dan Caplinger]

    Another issue that Varco has to face is the specter of increasing competition. Cameron International (NYSE: CAM  ) has arisen as a big player in the drilling and production systems space, with a particular emphasis on subsea applications like blowout preventers. With Cameron sporting a recent partnership with Schlumberger (NYSE: SLB  ) , the combination will have both the expertise and the financial resources to challenge Varco in that niche. More broadly, up-and-coming Forum Energy (NYSE: FET  ) has sought to emulate Varco's broad-based services menu, offering remotely operated vehicles for deepwater inspection and construction as well as pipe and cementing materials and a range of subsea systems and equipment. Forum has posted solid results in its brief history, taking steps to continue its fast growth trajectory.

  • [By Rich Duprey]

    Oil and gas industry services providers Cameron International (NYSE: CAM  ) and Schlumberger (NYSE: SLB  ) announced today that their�OneSubsea joint venture had received all required regulatory approvals and that they'll close on the JV on�June 30.

  • [By Monica Gerson]

    Schlumberger (NYSE: SLB) is estimated to report its Q3 earnings at $1.24 per share on revenue of $11.58 billion.

    Honeywell International (NYSE: HON) is projected to report its Q3 earnings at $1.24 per share on revenue of $9.92 billion.

Top 10 Medical Companies To Watch For 2014: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:
  • [By Dan Moskowitz]

    The shiniest dollar
    Many investors and analysts like to debate which dollar store offers the best investment opportunity. The truth is that Dollar General, Dollar Tree Stores (NASDAQ: DLTR  ) , and Family Dollar Stores (NYSE: FDO  ) are all likely to be quality long-term investments.

Best Undervalued Companies To Buy Right Now: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:
  • [By Travis Hoium]

    Second-quarter earnings have been fairly strong across the market, but that's largely due to cost-cutting and margin expansion, not revenue growth. As a global supplier to construction and mining industries, Caterpillar (NYSE: CAT  ) sees the foundation of economic expansion and is often considered an economic bellwether, particularly in emerging economies like China. That's why the company's cautionary words have helped drive the Dow Jones Industrial Average (DJINDICES: ^DJI  ) and S&P 500 (SNPINDEX: ^GSPC  ) down 0.26% and 0.39%, respectively, today. �

  • [By Laura Brodbeck]

    Earnings reports expected on Wednesday include:

    Caterpillar, Inc. (NYSE: CAT) is expected to report third quarter EPS of $1.70 on revenue of $14.40 billion, compared to last year�� EPS 0f $2.54 on revenue of $16.44 billion. Boeing Company (NYSE: BA) is expected to report EPS of $1.54 on revenue of $21.65 billion, compared to last year�� EPS 0f $1.35 on revenue of $20.01 billion. Bristol-Myers Squibb Company (NYSE: BMY) is expected to report third quarter EPS of $0.44 on revenue of $4.02 billion, compared to last year�� EPS 0f $0.41 on revenue of $3.74 billion. Motorola, Inc (NYSE: MSI) is expected to report third quarter EPS of $1.02 on revenue of $2.13 billion, compared to last year�� EPS 0f $0.84 on revenue of $2.15 billion. The Cheesecake Factory Incorporated (NASDAQ: CAKE) is expected to report third quarter EPS of $0.52 on revenue of $469.16 million, compared to last year�� EPS of $0.49 on revenue of $453.82 million.

    Economics

Sunday, November 24, 2013

Thanksgiving shopping a sacrilege for some

LOUISVILLE, Ky. -- Carol Larkin will not shop on Thanksgiving. Even though she lives directly behind the a Kroger supermarket, she won't even stop for a last-minute item on the way to her family feast Thursday at a sister's house.

"I want to spend the day with my family," said Larkin, 59.

But while Thanksgiving shopping refuseniks like Larkin are vocal in their complaints about the increasing encroachment into the holiday's sanctity, they may be fighting a losing battle, as retailers open early to lure shoppers on tight budgets.

Nearly one in four people responding to a recent survey by the National Retail Federation say they will shop on Thanksgiving.

Indeed, while a handful of major retailers — like Lowe's, Von Maur, Cabela's, Costco, Sam's Club and Nordstrom Rack — are holding out for a traditional Black Friday morning opening, an estimated 33 million people, or 23 percent of those surveyed by the retail federation, say Thanksgiving will find them in stores at some point.

Nearly 70 percent, an estimated 97 million shoppers, say they'll be out on Black Friday.

"It is evident that Americans are in the holiday spirit, despite their cautious approach to spending," said Pam Goodfellow, director of Consumer Insights at Prosper Insights & Analytics, a Worthingon, Ohio, firm that polled more than 6,000 consumers for the NRF survey.

Experts cite three major factors for retailers' desire to grab every possible shopping hour.

-- First, this year's holiday shopping season runs just 27 days, the shortest stretch between Thanksgiving and Christmas since 2002, according to the national retail group.

-- Second, retailers are nervous about spending, as consumers continue to cope with stagnant or declining wages amid overall concern about the economy. Consumer confidence unexpectedly fell this month to a two-year low, or a score of 72 by Thomson Reuters/University of Michigan Consumer Sentiment Index. That is lower than October's score of 73.2 and the 74.5 p! redicted by economists.

In all, we are expected to spend 2 percent less — an average $738 each this holiday season — compared with last year, the NRF reported. And locally, three out of four Kentucky independent retailers report somber expectations for the holiday shopping season, according to the Kentucky Retail Federation.

"There is not as much disposable income," KRF Executive Director Tod Griffin said of the trade group's annual holiday survey of 6,000 retailers statewide. The poll also found that businesses say they are financially in the same shape, or worse, than last year at this time.

Griffin said consumers and business owners alike are rattled by the recent government shutdown, uncertainty about health care costs, and the stagnant job market. "There are a lot of things out there that are not helping the economy stabilize."

-- Third, in many markets, there is simply less money to spend.

Incomes are drifting downward as many laid-off workers find employment, but often at lower pay rates than before. In the Louisville area, median income per capita is estimated at $42,500 this year, down 5.2 percent from $44,833 in 2012, according to the latest guidelines by the federal Department of Housing and Urban Development.

Bonifacio Aleman, a single dad of two teens who lives in Louisville, said he's among those feeling the pinch — and for many reasons, he's trimming his already tight holiday budget from $75 last year to $50 this holiday season.

"It has become so commercial, it makes me sick," said Aleman, executive director of Kentucky Jobs With Justice, a nonprofit advocacy group. "We get in this frenzy and go broke and not pay our bills to buy stuff for the holidays. Too many of us wind up in financial crisis because of it."

Still, a good number of shoppers relish the bargains brought by Thanksgiving Day shopping — a day becoming known as "Black Friday Eve." One in five consumers say it gives people a fun activity to do on Thanksgiving, according! to a rec! ent email survey by RetailMeNot, a digital coupon website.

Antonia Peagler, for example, will be working Friday, so she views the opening of more stores on Thanksgiving as an opportunity. In particular, Peagler said she is looking forward to the 9 a.m. opening Thursday of Old Navy stores in Louisville. An Old Navy fleece pullover is her standard gift for the men in her family every year.

"I stop at Old Navy every year," said Peagler, though she adds, "If the lines are too long, I can go online and get the same deal there."

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Target store team leader Bill Johnson stocks store items in Louisville on Thursday, Nov. 21, 2013.(Photo: Alton Strupp/The Courier-Journal)

If Peagler decides to stay home and shop online during the holiday, she'll have plenty of company. In addition to sharing time with family and friends around the table, 64 percent of survey respondents said they will scope out deals online on Thursday, while 37 percent said they will press mobile apps into use to scan or purchase items, according to the RetailMeNot survey.

This Thursday will be the third Thanksgiving that store manager William Johnson will open his Target store in Louisville. He expects lines will start forming around 4 p.m. for the 8 p.m. opening — and says the crowds are better than those who traditionally waited for Black Friday openings.

"They are not sleep-deprived. They have eaten," Johnson said. "They don't want to stay home and watch football all night long. And they'll get to bed by midnight instead of standing outside in the wee hours of the morning."

The store's better for it too, since the first wave of ! customers! will wane between midnight and 6 a.m., leaving time to restock.

"After you totally get destroyed, you can put Humpty Dumpty back together again and restock," he said.

Saturday, November 23, 2013

Intelsat Sets Preferred Dividend

Satellite services provider Intelsat (NYSE: I  ) announced yesterday its third-quarter dividend of $0.71875 per share on its 5.75% Series A mandatory convertible junior non-voting preferred stock, which trades on the NYSE under the symbol I.PRA.

Source: Intelsat.

Each Series A preferred share will automatically convert on May 1, 2016, into between 2.2676 and 2.7778 common shares. The number of shares issuable on conversion will be determined based on the average of the closing prices per share over the 40-trading-day period ending on the third trading day prior to the mandatory conversion date, the company said. They may be converted at any time before then at the minimum conversion rate of 2.2676 shares per Series A preferred share.

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The board of directors said the dividend is payable on Nov. 1 to the holders of record at the close of business on Oct. 15. Intelsat does not pay a dividend on its common stock.

link

Thursday, November 21, 2013

Now Is The Time To Buy Consumer Staples Stocks

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As the overall market has swooned during the last few years, even dull sectors have gotten swept up in the in the gains. That's included the boring makers of razor blades, shampoo and mac-n-cheese. Consumer staple stocks have spent much of the year following the market higher- with the Consumer Staples Select Sector SPDR (NYSE:XLP) posting an impressive 22.89% year-to-date.

That sort of high flying return has some market pundits questioning whether or not the normal staid sector has gone up too much and even prompted fears of pending staples crash.

However, historical data is pointing to a number of reasons to be still bullish on those firms that make the daily items will all need. For investors, it may be too soon to give up on consumer staples.

Still Value Left

Companies like industry stalwart Procter & Gamble (NYSE:PG) that produce food, juice and soap may not be exciting, but they tend to be very predictable. Their non-cyclical nature makes them perfect additions for a portfolio looking for shelter. They also tend to have hefty cash flows and dividends. All of these factors could help explain why the consumer staples have become popular investments over the last few years.

However, popularity does have its drawbacks.

As many income seeking and older investors sought the relative safety of the staples, valuations for the group have been pushed upwards to what some analysts have called "bubble-like." At one point, the several stocks in the sector– such as spice maker McCormick (NYSE:MKC) –were trading at 22 times forward earnings an unheard of multiple for the sleepy sector.

Yet, after a recent pullback, the purveyors of toilet paper and cheese could be ripe for the picking.

According to a recent report by investment manager Fidelity, the price to earnings (P/E) ratio for consumer staples! stocks was at 16.8 at the end of the third quarter. That's basically in-line with its long-term average. Nonetheless, when Fidelity compared this appraisal to the S&P 500, the found that consumer staple stocks were only 6% more expensive than the overall market. That's below the historical 10% premium that they normally trade at. Secondly, staples stocks are trading at less-than historical norms relative to their high-flying consumer discretionary twins.

Adding this reversion to the mean to the sectors 2 to 3% earnings growth this year and Fidelity reckons that staples stocks could outperform well into 2014.

Making A Play For The Staples

Given the recent pull-back and the chance to outperform, investors may want to load up on the makers of toothpaste and the like. Aside from the previous mentioned XLP, a great choice could be the Vanguard Consumer Staples ETF (NYSE:VDC). The exchange traded fund tracks 111 different staples firms including Colgate-Palmolive (NYSE:CL). The fund is one of the cheapest options for investors as well. Expenses run just 0.14%. However, the funds underlying index does play a bit "loose" with the staples and includes some retail exposure Kroger (NYSE:KR). Another option could be iShares US Consumer Goods (NYSE:IYK) which strictly focuses on goods producers.

Another option could be individual staples stocks.

The beverage makers could be poised for outperformance in the months ahead. Coca-Cola (NYSE:KO) has declined about 15% since hitting its recent highs. Yet, new growth initiatives in developed nations- such as sports drinks and water beverages- as well as emerging markets newfound thirst for soda should help propel earnings forward. Meanwhile that decline has pushed shares below historically measures. KO can be had for a forward P/E of just 18 and 2.8% dividend. Likewise, smaller rival Dr. Pepper Snapple Group (NYSE:DPS) can be had for P/E of 15 and 3.1% yield. Both could great picks given their dividend strength and recent weakness.

Another great option could be Kimberly-Clark (NYSE:KMB). The company operates in the boring business of toilet paper and paper towels. And it's about to get even more boring. Kimberly recent announced that it is has plans to spin-off its healthcare business- which makes products such as sterile wraps, surgical face masks and catheters- as a standalone company. That business has been a volatile contributor to earnings and the spin-off should "smooth-ou! t" returns at KMB. This will ultimately lead to higher returns for shareholders.(L6)

The Bottom Line

As the markets have swooned, so have many boring sectors. That includes consumer staples stocks. Still, the sector could still be a value based on historical data. Investors may not want to abandon the producers of pickles, dish soap and cigarettes just yet.

Disclosure - At the time of writing, the author did not own shares of any company mentioned in this article.

Tuesday, November 19, 2013

Changes expected as Finra weighs controversial broker-comp rule

finra, compensation, disclosure, wirehouse, independent broker-dealer, rule, recruiting, bonus

Finra could soon act on a rule that would force brokers to reveal recruiting incentives to their clients, but the controversial regulation may undergo some changes on its way to final approval.

The Financial Industry Regulatory Authority Inc. has put the topic on the agenda for its Sept. 19 meeting, after bumping it off the schedule for its July meeting.

Under its original proposal in January, Finra would require brokers to disclose enhanced recruitment compensation — including signing bonuses, upfront or back-end bonuses, loans, accelerated payouts and transition assistance, among other arrangements — to any client they solicited for one year following their transfer to a new firm. The rule would not apply to incentives totaling less than $50,000.

“My own guess is, it's not going to go,” said Peter Chepucavage, general counsel at Plexus Consulting Group LLC. “The board is either going to table it or modify it.”

Whatever the Finra board decides Thursday will not be the last word. It may issue a revised proposal and ask for comments from its members or it could send the rule to the Securities and Exchange Commission, which would conduct its own comment period and possibly make its own changes.

Finra chief executive Rick Ketchum said the rule is designed to make potential conflicts of interest transparent to consumers.

“We believe investors should be informed of conflicts involving recruitment packages when they make the important decision to move an account, especially when the decision to move means having to sell off proprietary products and taking a possible tax hit,” Mr. Ketchum said in a speech this year. “When a broker moves to a new firm and calls a customer and says, 'You should move your account with me because it will be good for you,' the customer needs to know all of the broker's motivations for moving.”

The proposal generated 65 comments letters. Generally, large wirehouses came out in favor, while independent broker-dealers opposed it. Morgan Stanley Smith Barney LLC, for instance, argued that the rule would help protect clients. Cetera Financial Group said it would be too complex, difficult to implement and would violate brokers' privacy.

The Financial Services Institute Inc., which represents independent broker-dealers and financial advisers, said it supports illuminating conflicts of interest, but asserted that the rule is flawed because it's too broad in one instance by including transition assistance and too narrow in another because it leaves out retention bonuses.

David Bellaire, the FSI's executive vice president and general counsel, anticipates that Finra will make changes.

“I would suspect we'll see that retention bonuses will be included in the rule and ! also that we will see Finra take a more principles-based approach,” Mr. Bellaire said. “It could put the burden on firms to identify recruiting practices that create conflicts of interest, and then give guidance on how to disclose them to investors.”

One broker recruiter wants the rule to die but concedes that that is probably wishful thinking.

“I believe Finra is hellbent to get this passed, and a case can be made that the wirehouses are behind it,” said Ron Edde, president and chief executive of Millennium Career Advisors. “They know it will suppress adviser movement. They'd like nothing more than to eliminate these bonuses. This is not popular among advisers in the field force.”

Another critic said that Finra's original rule would fail to achieve its objective of shining a light on potential compensation conflicts because it doesn't look at all of them.

“The way this has been drafted is silly,” said Brian Hamburger, president and chief executive of MarketCounsel LLC, a business and regulatory compliance consulting firm. “To only disclose the amount in recruiting deals takes off the hook those firms that are paying obscene amounts in retention deals. To only disclose this narrow subset of compensation practices is completely misleading.”

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The premise of the rule is wrong, according to Mr. Edde.

“I have yet to see — nor has anyone else — a single shred of evidence where a client has been materially harmed by an adviser receiving a transition bonus for changing firms,” he said. “The public doesn't have a need to know everything.”

A better approach would be a more generic one, Mr. Chepucavage said. He would favor a simple disclosure by the adviser's new firm saying he or she may have received a significant bonus for making a job change. After receiving the! notice, ! a potential client could delve further into the situation.

“It only applies to customers who are interested,” Mr. Chepucavage said. “If they're happy with this rep, they're going to go with him. If they're not happy, they're going to stay at the old firm.”

Sunday, November 17, 2013

Why There's Blame to Go Around on Consumers' Rising Bank Overdrafts

Top 10 Bank Stocks To Watch Right Now

NEW YORK (TheStreet) -- U.S. consumer bank overdrafts are up, but consumers shouldn't feel they're solely to blame.

Moebs Services, a Lake Bluff, Ill.-based economic research firm, says that the recent increase in overdrafts is tied directly to the Jan. 1 payroll tax hikes engineered by Congress and signed off by the president.

In its latest quarterly study, Moebs says overdrafts rose $200 million from the first quarter to the second quarter of 2013.

On a yearly basis, bank overdrafts remain below last year's levels, standing at $31.3 billion from $32 billion in the fourth quarter of 2012. Also see: Wall Streets' Great Recession Cost Us All $30 Trillion>> The quarterly rise is no coincidence, Moebs says. Consumers simply have less cash to cover purchases and payments. Besides the payroll tax issue, the sequester, which cut government spending and triggered March 1, also fueled uncertainty among consumers. "With the tax increase in Social Security Jan. 1, stemming from government automatic budget increases, consumers net pay was reduced," says Michael Moebs, chief economist and CEO at Moebs Services. "It takes three to six months for economic fiscal changes to fully show up in the marketplace, and the cut in the average pay hit consumers' pocketbooks in the second quarter of this year." Also see: Bank Fees, Higher Account Minimums Get Some Hackles Up>> Moebs says reduced overdraft volume reflects the belt-tightening by the consumer, especially in the all-important back-to-school shopping season -- the second-busiest shopping season of the year, behind Christmas. "The back-to-school season shows parents were conservative in school-supply purchases, and recently released individual income data reflects very small increases so far this year," he says. "The automatic budget cuts, or sequester, have created uncertainty for consumers. Keeping the checkbook balanced and avoiding overdrafts reflect these economic trends." Yet there is some good news in the consumer overdraft data. Moebs says that bank overdrafts declined to just seven per consumer, per year -- the lowest level of consumer usage since 1995-99, he says. Part of the reason overdraft revenues have risen is because banks and credit unions are raising what they cost, to about $30 this year from about $28.

Friday, November 15, 2013

First Take: Twitter IPO uncorks party for socia…

SAN FRANCISCO -- Twitter's IPO plans give Wall Street plenty to crow about.

That's because investors face hockey stick-like ad revenue growth from the social media company. Twitter, whose main revenue comes from Sponsored Tweets, has disclosed advertising figures in its filing that confirm upbeat growth estimates.

Jackpot cash returns will go to Russian investor Yuri Milner and Benchmark Capital's Peter Fenton. Likewise new mega millionaires will be minted from the likes of co-founders Biz Stone, Jack Dorsey. Many early investors who got in on the deal will see massive returns. The latest riches mark a new go-go era for social investments.

The microblogging service's offering will widely whet investors' appetite for social media stocks, too. In the wake of Facebook's IPO flop rebound and LinkedIn's soaring share price, the social investment party is officially popping the bubbly.

With Twitter's IPO coming, Pinterest's popular social pin boards become the next infatuation for social media investors. Also, a new generation of privacy-minded social startups is cropping up in the likes of SnapChat and Whisper, suggesting more is to come.

What's at stake is a social advertising market expected to blast off from last year's $7.3 billion to $14.5 billion in 2015, according to eMarketer.

Public disclosure of Twitter's IPO documents means the company can begin pricing its offering and in 21 days go public.

Expectations run high that Twitter is on a fast track for revenue growth. Twitter is expected to haul in about $1 billion in ad revenue by next year, up from $582.8 billion in 2013, according to eMarketer. Twitter confirmed its on track for growth: revenue jumped nearly 200% from 2011 to 2012. From the six months ended June 30, 2012, to the six months ended June 30, 2013, revenue increased by 107% to $253.6 million, putting Twitter on steady growth ramp up.

Twitter's Sponsored Tweets, which run in people's feeds, are its main moneymaker ad unit. But the company i! s testing its potential to drive advertising business in music and television. More than half of its revenue is coming from mobile.

Twitter announced last month in a tweet that its filing had been made confidentially with the Securities and Exchange Commission. Under rules of the Jumpstart Our Business Startups Act, passed last year, companies with under $1 billion in revenue in the year before their IPO can file documents in secrecy at the start of the process.

Social giant Facebook raised more than $16 billion from its IPO in May of 2012, marking the largest-ever Internet offering on record. Shares plummeted below its IPO price of $38 following its market debut on growth concerns.

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LinkedIn has seen its fortunes soar since launching its IPO in May of 2011. The professional-networking company's stock has rocketed 500% from an IPO pricing of $45 to $245.07 in trading today.

Social's next blockbuster IPO candidate will be Pinterest, whose advertising business has only just begun. Last month, Pinterest launched Promoted Pins -- its first ad product -- as a vehicle for brands to drive users of the social photo-pinning site to stores. Pinterest is uniquely situated as a place where people browse collections of images of products.

Wednesday, November 13, 2013

Best Biotech Companies For 2014

The biotech sector has been pretty exciting this year�with small cap biotech stocks Prana Biotechnology Limited (NASDAQ: PRAN) and TNI BioTech (OTCMKTS: TNIB) having recently produced noteworthy news for investors�while Acceleron Pharma, Inc (NASDAQ: XLRN), Ophthotech (NASDAQ: OPHT) and BIND Therapeutics (NASDAQ: BIND) have just�set term sheets for their upcoming IPOs. Just consider all of the following recent news:

Surge in Biotech IPOs. Unquote.com has noted�a surge in biotech IPOs this year as there have been�almost 30 biotech IPOs since January - marking a 13-year high and sparking some concerns about a bubble. More specifically and according to the National Venture Capital Association (NVCA), there was just one venture capital-backed biotech IPO in the US in the first quarter of this year, but this was followed by a massive increase of 20 in�the second quarter and a�further six since July. There has also been a small uptick in�venture capital-backed European biotech companies going public (four) with�a listing on the Nasdaq appearing to be the most popular or rather the safest option. � New IPO Term Sheets. This month, a couple of small cap biotech companies announced their terms for upcoming IPOs, including 1)�Acceleron Pharma, Inc, a clinical stage biotech developing protein therapeutics for cancer and rare diseases, plans to raise $65 million by offering 4.7 million shares at a price range of $13 to $15; 2) Ophthotech, a clinical-stage biotech developing therapeutics for eye diseases, plans to raise $100 million by offering 5.7 million shares at a price range of $16 to $19; and 3) BIND Therapeutics, a clinical-stage biotech developing a platform of targeted and programmable therapeutics, plans to raise $71 million by offering 4.7 million shares at a price range of $14 to $16. Biotechs Invest More on R&D. The 2013 BDO Biotech Briefing examined the most recent 10-K SEC filings of publicly traded companies listed on the Nasdaq Biotechnology Index and�found that companies spent on average $54 million on R&D in 2012, up from $50 million in 2011 and $48 million in 2010. Moreover, biotech companies also saw an average 13% revenue jump in 2012, but it was larger cap�biotechs (revenues over $50 million) who were the primary contributors to the increase. On average, the saw a�28% increase in revenue, while smaller biotechs reported a 27% decline in average revenue last year. Nevertheless, smaller�biotechs saw a 9% increase in average overall R&D spending while�average R&D spending as a percentage of revenue increased to 215% in 2012 from 143% in 2011. Australia and New Zealand�� Hot Biotech Market. Thebull.com.au has a lengthy article about the biotech sector downunder which noted that the�Aussie Biotech Sector is the largest in the world as a proportion of GDP while the Australian Life Sciences Index has generated consistently better returns than both the US NASDAQ Composite Index and�Australia���All Ordinaries Index since mid-2006. The big winners as of the beginning of September have been New Zealand-based Neuren Pharmaceuticals Limited (ASX: NEU), which has a drug to treat Traumatic Brain Injury investors that�could be the first drug of its type to get US FDA approval, as it was up�300%; and Australia-based and NASDAQ listed Prana Biotechnology Limited which�focuses on developing drugs to treat degenerative processes associate with aging (it has clinical trial of a treatment for Alzheimer�� underway). Prana Biotechnology Limited. And speaking of Prana Biotechnology Limited, its shares were sliding after announcing last week that the results from a study of its most advanced experimental drug will be delayed. Prana Biotechnology Limited said it now expects to report results from�a trial�which evaluated PBT2 as a treatment for Huntington's disease, in early 2014 instead of the fourth quarter of 2013. Nevertheless and as of this week, Prana Biotechnology Limited is still up about 99% since the start of the year. � TNI BioTech Makes a Couple of Important Announcements. Formed in 2012 to acquire patents, develop treatments, market and license immunotherapies for the treatment of cancer, HIV/AIDS and autoimmune diseases using methionine enkephalin (MENK) and low dose naltrexone (LDN), small cap TNI BioTech�� first patents and therapies were acquired from Dr. Nicholas P. Plotnikoff and Dr. Fengping Shan. This month, TNI BioTech announced a manufacturing and supply�agreement with Laboratorios Ramos for the production of Low Dose Naltrexone (��DN�� for commercial use. FDA-approved naltrexone, in a low dose, can normalize the immune system and help those suffering from�HIV/AIDS, cancer, autoimmune diseases and central nervous system disorders. Last week, TNI BioTech also gave a financing update where it noted that the company has�received $826,250 as consideration for the exercise of the previously-issued warrants and $531,250 for the purchase of common stock under the Private Placement, for an aggregate sum of $1,357,500.

Given the above, it looks like the small cap biotech sector is set to stay hot and get even hotter.

Best Biotech Companies For 2014: Rexahn Pharmaceuticals Inc (RNN)

Rexahn Pharmaceuticals, Inc. (Rexahn) is a development-stage biopharmaceutical company. The Company focuses on the development of cures for cancer to patients worldwide. The Company�� pipeline features one drug candidate in Phase II clinical trials. The Company also has several other drug candidates in pre-clinical development. In addition, the Company has two renal cell carcinoma (CNS) candidates, Serdaxin, CNS Disorders drug for depression and neurodegenerative diseases and Zoraxel, which is a erectile dysfunction (ED) and sexual dysfunction drug that are in clinical stages and the Company is are exploring options for further development . The Company�� drug candidate, Archexin is an anticancer Akt inhibitor.

Archexin

Archexin is potent inhibitor of the Akt protein kinase (Akt) in cancer cells. Archexin has FDA orphan drug designations for five cancers (RCC, glioblastoma, and cancers of the ovary, stomach and pancreas). Multiple indications for other solid tumors can also be pursued. Archexin inhibit both activated and inactivated forms of Akt, and to reverse the drug resistance observed with the protein kinase inhibitors. Archexin is an antisense oligonucleotide (ASO) compound that is complementary to Akt mRNA, and selective for inhibiting mRNA expression and production of Akt protein. As of December 31, 2011, Archexin was in Phase II clinical trials for the treatment of pancreatic cancer with enrollment completed in September, 2011.

Serdaxin

Serdaxin is an extended release formulation of clavulanic acid, which is an ingredient present in antibiotics approved by the FDA. The Company had been developing Serdaxin for the treatment of depression and neurodegenerative disorders. From January to September, 2011, the Company conducted a randomized, double-blind, placebo-controlled study compared two doses of Serdaxin, 0.5 milligram and 5 milligram, to placebo over an eight-week treatment period for major depressive disorder (MDD) patients. As of Dec! ember 31, 2011, the Company had not made a determination of Serdaxin�� future paths or resource allocations to further develop Serdaxin to treat MDD.

Zoraxel

Zoraxel is an orally administered, on-demand tablet to treat sexual dysfunction. Zoraxel is a dual enhancer of neurotransmitters in the brain that play a key role in sexual activity phases of motivation and arousal, erection and release, and may be the ED drug to affect all three of these phases of sexual activity. As of December 31, 2011, the Company was evaluating how to proceed with the Phase IIb study of Zoraxel.

The Company�� Pre-clinical Pipeline Drug Candidates includes RX-1792, which is a small molecule anticancer EGFR inhibitor; RX-5902, which is a small molecule anticancer ribonucleic acid (RNA) helicase regulator; RX-3117, which is a Small molecule anticancer deoxyribonucleic acid (DNA) synthesis Inhibitor; RX-8243, which is a small molecule anticancer aurora kinase inhibitor; RX-0201-Nano, which is a nanoliposomal anticancer Akt inhibitor; RX-0047-Nano, which is an nanoliposomal anticancer HIF-1 alpha inhibitor and RX-21101, which is a nano-polymer Anticancer.

Advisors' Opinion:
  • [By Roberto Pedone]

    One under-$10 biopharmaceutical player that's just starting to move into breakout territory is Rexahn Pharmaceuticals (RNN), which is engaged in the development of novel treatments for cancer to patients. This stock has been on fire so far in 2013, with shares up sharply by 62%.

    If you take a look at the chart for Rexahn Pharmaceuticals, you'll notice that this stock has been uptrending strong for the last month, with shares moving higher from its low of 36 cents per share to its intraday high of 53 cents per share. During that uptrend, shares of RNN have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of RNN into breakout territory above some near-term overhead resistance levels at 49 cents to 50 cents per share. It's worth noting that volume today is tracking in extremely strong with over 3 million shares traded, versus its three-month average action of 1.22 million shares.

    Traders should now look for long-biased trades in RNN if it manages to break out above Thursday's intraday high of 53 cents per share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 1.22 million shares. If that breakout hits soon, then RNN will set up to re-test or possibly take out its next major overhead resistance levels at 64 cents to its 52-week high at 66 cents per share. Any high-volume move above 66 cents to 67 cents per share could then send RNN towards its next major overhead resistance levels at 81 cents per share.

    Traders can look to buy RNN off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at 47 cents per share. One can also buy RNN off strength once it clears 53 cents per share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Best Biotech Companies For 2014: StemCells Inc (STEM)

StemCells, Inc. (StemCells), incorporated in August 1988, is engaged in the research, development, and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The Company is focused on developing and commercializing stem and progenitor cells as the basis for therapeutics and therapies, and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. The Company�� primary research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents. The Company has two therapeutic product development programs, including its CNS Program, which is developing applications for HuCNS-SC cells, its human neural stem cell product candidate, and its Liver Program, which is characterizing the Company�� human liver cells as a therapeutic product.

CNS Program

The Company in its CNS Program, is in clinical development with its HuCNS-SC cells for a range of disorders of the central nervous system. The CNS includes the brain, spinal cord and eye. In February 2012, the Company had completed a Phase I clinical trial in Pelizeaus-Merzbacher Disease (PMD), a fatal myelination disorder in the brain.

The Company�� CNS Program is focused on developing clinical applications, in which transplanting HuCNS-SC cells protect or restore organ function of the patient before such function is irreversibly damaged or lost due to disease progression. The Company�� initial target indications are PMD, and more generally, diseases in which deficient myelination plays a central role, such as cerebral palsy or multiple sclerosis; spinal cord injury, disorders in which retinal degeneration plays a central role, such as age-related macular degeneration or retinitis pigmentosa. The Company�� product candidate, HuCNS-SC cells, is a purified and expanded composition of normal human neural stem cells. Its HuCNS-SC cells can be directly transp! lanted.

Liver Program

Liver stem or progenitor cells offer an alternative treatment for liver diseases. A liver cellular therapy or cell-based therapeutic provide or support liver function in patients with liver disease. The Company held a portfolio of issued and allowed patents in the liver field, which cover the isolation and use of both hLEC cells and the isolated subset, as well as the composition of the cells themselves.

The Company�� range of cell culture products, which are sold under the SC Proven brand, includes iSTEM, GS1-R, GS2-M, RHB-A, RHB-Basal, NDiff N2, and NDiff N2B27. Its iSTEM is a serum-free, feeder-free medium that maintains mouse embryonic stem cells in their pluripotent ground state by using selective small molecule inhibitors to block the pathways, which induce differentiation. RHB-A is a defined, serum-free culture medium for the selective culture of human and mouse neural stem cells and their maintenance and expansion as adherent cell populations. RHB-Basal is a defined, serum-free basal medium. When supplemented with specific growth factors, this media is formulated for the propagation and differentiation of adherent neural stem cells. RHB-Basal can also be tailored to specific-cell type requirements by the addition of customer preferred supplements.

The Company�� NDiff N2 is a defined serum-free scell culture supplement for the derivation, maintenance, expansion and/or differentiation of human and mouse embryonic stem (ES) cells and tissue-derived neural stem cells supplement. Its NDiff N2-AF is a serum-free and animal component-free version of NDiff N2. Its NDiff N2B27 is a defined, serum-free medium for the differentiation of mouse embryonic stem cells to neural cell types. NDiff N27-AF is a serum-free and animal component-free version of NDiff N27. Its GS1-R is a serum-free media formulation shown to enable the derivation and long-term maintenance of true, germline competent rat embryonic stem cells without the add! ition of ! cytokines or growth factors. Its GS2-M is a defined, serum- and feeder-free medium for the derivation and long-term maintenance of true, germline competent mouse iPS cells.

The Company also markets a number of antibody reagents for use in cell detection, isolation and characterization. These reagents are also under the SC Proven brand and it includes STEM24, STEM101, STEM121 and STEM123. Its STEM24 is a human antibody that recognizes human CD24, also known as heat stable antigen (HSA), a glycoprotein expressed on the surface of many human cell types, including immature human hematopoietic cells, peripheral blood lymphocytes, erythrocytes and many human carcinomas. Its CD24 is also a marker of human neural differentiation. Its STEM101 is a human-specific mouse antibody that recognizes the Ku80 protein found in human nuclei. Its STEM121 is a human-specific mouse antibody that recognizes a cytoplasmic protein of human cells. Its STEM123 is a human-specific mouse antibody that recognizes human glial fibrillary acidic protein (GFAP).

The Company�� Other products marketed under SC Proven include total cell genomic DNA (gDNA), RNA and protein lysate reagents purified from homogenous stem cell populations for intra-comparative studies, such as Epigenetic fingerprinting, Southern, Western and Northern blots, PCR, RT-PCR and microarrays. This range of purified stem cell line lysates includes mouse embryonic stem (ES) cells propagated in SC Proven 2i inhibitor-based GS2-M media and mouse ES cell-derived and fetal tissue-derived neural stem (NS) cells propagated in SC Proven RHB-A media.

Advisors' Opinion:
  • [By John Udovich]

    The results of a recent Pew Center Poll regarding attitudes towards abortion and various forms of stem cell research could be a good sign for the stem cell industry along with small cap stem cell stocks like StemCells Inc (NASDAQ: STEM), NeoStem Inc (NASDAQ: NBS), Neuralstem, Inc (NYSEMKT: CUR),�International Stem Cell Corp (OTCMKTS: ISCO) and BioRestorative Therapies (OTCBB: BRTX). Basically, Americans think that having an abortion is a moral issue with 49% of American adults believing abortion is morally wrong, 23%�view it not as a moral issue and and 15% view it as morally acceptable. However and when Americans were asked about issues surrounding�human embryos, such as stem cell research or in vitro fertilization, as a matter of morality, their views were different.

  • [By James E. Brumley]

    When an investor thinks of spinal-related stem cell stocks, usually a name like Neuralstem, Inc (NYSEMKT: CUR) or StemCells Inc (NASDAQ: STEM) comes to mind. And well they should. STEM has logged some amazing breakthroughs in the field of spinal cord repair, while CUR has done the same. Not all back problems are spinal cord related though. In fact, most back problems - and therefore the most opportunity - are bone and disc related problems. That's where a young gun like BioRestorative Therapies (OTCBB: BRTX) can step in and make stem cell waves. BRTX has developed an approach to rejuvenate and revive failing spinal discs, potentially ending pain for millions of back-pain sufferers, and circumventing expensive spinal surgeries that are in increasing burden on insurance companies.

Best Dividend Companies To Invest In 2014: Neoprobe Corporation(NEOP)

Neoprobe Corporation, a biomedical company, engages in the development and commercialization of precision diagnostics that enhance patient care and improve patient benefit. The company is developing and commercializing targeted agents aimed at the identification of occult (undetected) disease. Neoprobe?s two lead radiopharmaceutical agent platforms, Lymphoseek and RIGScan are intended to help surgeons better identify and treat certain types of cancer. Lymphoseek is a diagnostic imaging agent intended for radiolabeling and administration in radiodetection and visualization of the lymphatic system draining the region of injection for delineation of the lymphatic tissue; and RIGScan is an intraoperative biologic targeting agent consisting of a radiolabeled murine monoclonal antibody. The company has a biopharmaceutical development and supply agreement with Laureate Biopharmaceutical Services, Inc. to support the initial evaluation of the viability of the CC49 master working c ell bank, as well as the initial steps in re-validating the commercial production process for the biologic agent used in RIGScan CR. The company was founded in 1983 and is based in Dublin, Ohio.

Best Biotech Companies For 2014: Savient Pharmaceuticals Inc(SVNT)

Savient Pharmaceuticals, Inc., a specialty biopharmaceutical company, focuses on developing KRYSTEXXA, a biologic PEGylated uricase in the United States. The KRYSTEXXA is being developed as a treatment for chronic gout in patients refractory to conventional therapy. The company also sells and distributes branded and generic versions of oxandrolone, a drug used to promote weight gain following involuntary weight loss. It sells its products directly to drug wholesalers. The company, formerly known as Bio-Technology General Corp. and changed its name to Savient Pharmaceuticals, Inc. in June 2003. Savient Pharmaceuticals, Inc. was founded in 1980 and is headquartered in East Brunswick, New Jersey.

Advisors' Opinion:
  • [By James E. Brumley]

    It's still too soon to say Savient Pharmaceuticals Inc. (NASDAQ:SVNT) is off and running. In fact, the stock's decidedly NOT off and running yet. But, it's not too soon to put SVNT on your watchlist of potential breakout candidates, as it's much closer to a breakout than most anyone can see.

  • [By James E. Brumley]

    Since 2008's implosion from the stock, the interest in Savient Pharmaceuticals Inc. (NASDAQ:SVNT) has been waning. There was a brief burst of bullishness in September of last year, which stirred the bullish pot a little. But, when SVNT started to fade in October of that year - just as quickly as it had perked up - what lingering hopes there were for the stock finally started to melt away. By the middle of this year, pretty much everyone had written Savient Pharmaceuticals off as a lost cause. Big mistake. Over the last few days, SVNT has almost wiggled its way buck into a bullish zone.

Best Biotech Companies For 2014: Gentium SpA(GENT)

Gentium S.p.A., a biopharmaceutical company, focuses on the development and manufacture of its primary product candidate, defibrotide, an investigational drug based on a mixture of single-stranded and double-stranded DNA extracted from pig intestines. It develops defibrotide for the treatment and prevention of hepatic veno-occlusive disease (VOD), a condition that occurs when veins in the liver are blocked as a result of cancer treatments, such as chemotherapy or radiation, that are administered prior to stem cell transplantation. The company has completed a Phase III clinical trial of defibrotide for the treatment of severe VOD in the United States, Canada, and Israel; and a Phase II/III pediatric trial in Europe for the prevention of VOD. It also offers sulglicotide that is developed from swine duodenum, and has ulcer healing and gastrointestinal protective properties in South Korea; and urokinase, which is made from human urine to treat various vascular disorders, such as deep vein thrombosis and pulmonary embolisms. The company was formerly known as Pharma Research S.r.L. and changed its name to Gentium S.p.A. in July 2001. Gentium S.p.A. was founded in 1993 and is headquartered in Villa Guardia, Italy.

Advisors' Opinion:
  • [By Sean Williams]

    A parabolic problem
    It has also been a year to remember for shareholders of biopharmaceutical company Gentium (NASDAQ: GENT  ) whose share price has catapulted approximately 600% off its lows thanks to growth in its lead drug Defibrotide (known as Defitelio in the European Union).

Best Biotech Companies For 2014: Regeneron Pharmaceuticals Inc.(REGN)

Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes pharmaceutical products for the treatment of serious medical conditions in the United States. The company?s commercial product includes ARCALYST (rilonacept) injection for subcutaneous use for the treatment of cryopyrin-associated periodic syndromes, including familial cold auto-inflammatory syndrome and muckle-wells syndrome in adults and children. Its products under Phase III clinical development stage consist of VEGF Trap-Eye, an aflibercept ophthalmic solution developed using intraocular delivery for the treatment of serious eye diseases; ARCALYST for the prevention of gout flares in patients initiating uric acid-lowering treatment; and Aflibercept (VEGF Trap), which is developed in oncology. The company?s earlier stage clinical programs include various human antibodies, such as REGN727 for low-density lipoprotein cholesterol reduction, REGN88 for rheumatoid arthritis and ankylosing spondylitis; REGN668 for atopic dermatitis and asthma; REGN421 and REGN910 for oncology; REGN475 for the treatment of pain; and REGN728 and REGN846. It also conducts preclinical research programs in the areas of oncology and angiogenesis, ophthalmology, metabolic and related diseases, muscle diseases and disorders, inflammation and immune diseases, bone and cartilage, pain, cardiovascular diseases, and infectious diseases. The company distributes its products through third party service providers. It has strategic collaboration with sanofi-aventis Group to discover, develop, and commercialize human monoclonal antibodies; and Bayer HealthCare LLC to develop and commercialize VEGF Trap. Regeneron Pharmaceuticals, Inc. was founded in 1988 and is based in Tarrytown, New York.

Advisors' Opinion:
  • [By Ben Levisohn]

    Shares of Regeneron Pharmaceuticals (REGN) have jumped today as two investment banks released positive comments on the drug maker over the weekend following the release of optimistic data about of one of its drugs on Friday.

    EPA

    RBC Capital Markets analysts Adnan Butt and Michael Yee explain:

    Detailed 1-year Phase III DME data for Eylea demonstrated statistically significant vision improvement, comparable efficacy between the every 4 and 8 week Eylea arms, and a clean safety profile. Three positive things relative to the Lucentis Phase III program include: 1) efficacy in a more treatment experienced and tougher patient population, 2) potential for safety differences, especially when it comes to APTC and death events, and 3) every two month dosing that could be on the label. Since REGN will file an sBLA for Eylea by YE:13, potential approval in 2014 could reaccelerate Eylea sales growth, especially once two-year data is available. We believe there could be a pool of hard to treat Lucentis� and Avastin patients with [diabetic macular edema], as roughly one-third of patients on Lucentis still had leakage in the Phase III studies.

    Butt and Yee raised their price target for Regeneron to $323 from $293.

    Cowen’s David Ferreiro, meanwhile, notes that the amount of medicine patients need to take will make a big difference. He writes:

    Our diligence suggests that less frequent dosing with Eylea will be key, given the generally low compliance rates among diabetic patients. Currently, we assume only minor market expansion; however, some of our consults suggest Eylea dosing convenience could meaningfully expand the market.

    Ferreiro raised his price target to $310 from $300.

    Shares of Regeneron have jumped 3.5% to $316.39–and the S&P 500′s best performer today. Novartis (NVS), which makes Lucentis, has dipped 0.5% to $76.73, while Roche (RHHBY), which makes Avastin, has gained 0.2% to $67.54. Vertex Ph

  • [By Dan Caplinger]

    Regeneron Pharmaceuticals (NASDAQ: REGN  ) , up 55%
    Interestingly enough, part of the reason for Regeneron's big advance comes from the fact that it wasn't even part of the S&P 500 until a couple weeks ago. The biotech company came into the index at the end of April, replacing MetroPCS after its merger with T-Mobile. Yet even after that, Regeneron's stock has soared 27%, largely because of the misfortunes of rival Allergan and its failed phase 2 study of competing vision-loss drug candidate DARPin. The move should pave the way for Regeneron's Eylea to enjoy even faster growth.

  • [By Keith Speights]

    Sanofi (NYSE: SNY  ) and Regeneron Pharmaceuticals (NASDAQ: REGN  ) have developed a new drug that could lower LDL even more effectively than popular statin drugs. In November, the two companies announced enrollment in a large late-stage clinical trial to study the effects of an antibody that could lower LDL levels by inhibiting an enzyme called PCSK9 that is involved in the production of cholesterol.