Saturday, November 30, 2013

The ‘new’ American will trade on Nasdaq under ‘…

The "new" American will make its Wall Street home on Nadaq.

The American Airlines Group – the company that will be formed once American parent AMR and US Airways close on their merger – will trade under the "AAL" symbol on the Nasdaq market, the airlines revealed in a joint statement today (Nov. 15).

RELATED: Merger: What's next for AA, US Airways customers?
MORE: Justice settles merger lawsuit with AA, US Airways
PHOTOS: The new look of American Airlines

"Today we moved another step closer in our preparations to launch the new American Airlines," American CEO Tom Horton says in the statement. "Nasdaq offers a most advanced trading platform driven by innovation and efficiency – qualities that complement the new American."

"We are very excited about the listing of our shares on the Nasdaq Global Select Market," Doug Parker, the CEO of US Airways who will head the new carrier, adds in the statement. "The combined airline will have a strong financial foundation and is poised to deliver significant value to shareholders as a result of its robust global network. We are excited about what's ahead for the new American and what we will be able to deliver for our investors, customers, employees and other stakeholders."

American's AMR parent had traded on the the New York Stock Exchange under the "AMR" symbol until its 2011 bankruptcy filing. US Airways currently trades on the NYSE under the "LCC" symbol, which it chose for "low-cost carrier" following its merger with America West.

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Friday, November 29, 2013

Can Groupon Continue to Outperform Post-Earnings?

With shares of Groupon (NASDAQ:GRPN) trading around $10, is GRPN an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Groupon offers online retail services. The company provides daily deals on stuff to do, eat, see, and buy in more than 500 markets in 44 countries. It provides an online service that lets groups of people create campaigns to pool resources, including money and personal commitments to take action, and it allows users to sell products and transact business online. Groupon is poised to see rising traffic as it provides consumers with ways to save on common shopping experiences and activities.

Groupon has continued to rise after reporting third-quarter earnings that beat expectations after the bell on Thursday. Up 2.7 percent in premarket trading, the company reported that sales rose 4.7 percent to $595.1 million. Groupon posted a net loss of $2.58 million, much less than analyst expectations of $14.3 million, according to analysts surveyed by Bloomberg. Groupon also announced that it's purchasing South Korean travel deals company Ticket Monster Inc. for $260 million.

T = Technicals on the Stock Chart are Strong

Groupon stock has witnessed sharp moves since its initial public offering in 2011. The stock has been surging higher this year and is currently trading slightly below highs for the year. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Groupon is trading between its rising key averages which signal neutral price action in the near-term.

GRPN

(Source: Thinkorswim)

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

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Groupon Options

58.99%

0%

0%

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

Put IV Skew

Call IV Skew

December Options

Average

Average

January Options

Average

Average

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

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

E = Earnings Are Increasing Quarter-Over-Quarter

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

2013 Q3

2013 Q2

2013 Q1

2012 Q4

Earnings Growth (Y-O-Y)

0.00%

-125.00%

50.00%

0.73%

Revenue Growth (Y-O-Y)

4.66%

7.11%

7.53%

29.69%

Earnings Reaction

8.26%*

21.55%

11.44%

-24.24%

Groupon has seen increasing earnings and revenue figures over the last four quarters. From these numbers, the markets have been pleased with Groupon’s recent earnings announcements.

* As of this writing

P = Excellent Relative Performance Versus Peers and Sector

How has Groupon stock done relative to its peers, Facebook (NASDAQ:FB), Google (NASDAQ:GOOG), United Online (NASDAQ:UNTD), and sector?

Groupon Inc.

Facebook

Google

United Onlinne

Sector

Year-to-Date Return

111.30%

79.64%

43.90%

142.40%

95.31%

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

Conclusion

Groupon allows consumers and companies to find a happy medium when transacting for goods or services. The company continues to rise after reporting third quarter earnings that beat expectations. The stock is currently trading slightly below yearly highs and looks poised to continue. Over the last four quarters, earnings and revenues have been increasing, leaving investors pleased. Relative to its peers and sector, Groupon has been a year-to-date performance leader. Look for Groupon to OUTPERFORM.

Thursday, November 28, 2013

Asia stocks higher after recent declines

Asian stocks moved higher on Monday, with Australia hitting a fresh-five year high, as shares bounced back from recent falls.

Regional markets started the week in recovery mode, following a series of declines last week that hit Japan and China especially hard. A pickup in interbank lending rates in China spooked investors and yanked the Shanghai Composite down 2.8% last week, while a strong yen helped the Nikkei Average sink 3.3% over the same period.

Reuters Enlarge Image

A positive lead from Wall Street, where the S&P 500 (SPX)  hit a record high on Friday, and the absence of fresh negative catalysts allowed Asian stocks to bounce back.

The coming week promises to be a busy period in terms of earnings news for the region, while the U.S. Federal Reserve's policy meeting later on in the week will be a focus as investors look for clues on the central bank's stimulus plans.

Looking ahead to November, markets are anticipating an important Communist Party meeting in China, where there are expectations that the country's new government will unveil economic reforms.

The yen (USDJPY)  weakened slightly early in Asia, with the dollar trading at ¥97.51, compared with ¥97.40 late Friday in New York.

The softer yen allowed the Nikkei Average (JP:NIK)  to climb 1.1%, coming back from a hefty 2.8% fall on Friday.

Australia's S&P/ASX 200 (AU:XJO)  rose 1.2%, and South Korea's Kospi (KR:SEU)  was flat.

Gains in China were moderate, with Hong Kong's Hang Seng Index (HK:HSI)  up 0.4% and the Shanghai Composite (CN:SHCOMP)  0.3% higher.

China Construction Bank (HK:939)   (CICHF)  rose 1.1% in Hong Kong after China's second-largest bank by profits posted third-quarter net profit that came out slightly below market expectations.

China Life Insurance Co. (HK:2628)   (LFC)  rose 2.7% after China's largest life insurer by premiums reported that it had made a 7.5 billion yuan ($1.2 billion) profit in the third quarter, reversing a 2.2 billion yuan loss in the same period last year.

Also in Hong Kong, Chong Hing Bank (HK:1111)  sank 6.7% after Chinese conglomerate Yuexiu Enterprises said on Friday it will acquire a majority stake in the Hong Kong lender for $1.5 billion — the first local-bank sale in several years.

Click to Play Xi unlikely to target Bo's allies

A Chinese court rejects an appeal by Bo Xilai, the former Communist Party boss in Chongqing who was convicted of bribery, embezzlement and abuse of power. What more can we expect from the Bo Xilai case? (Photo: Central Television/Reuters)

In Tokyo, telecoms firm KDDI Corp. (JP:9433)   (KDDIF)  rose 2% after a Nikkei report said that the firm will likely report a record first-half group operating profit, with a 50% on-year increase. TDK Corp. (JP:6762)   (TTDKF) , however, dropped 0.2% after a separate Nikkei report said that the electronics-component producer will report an 8% increase in operating profit over the same period.

Also in Japan, Mizuho Financial Group (JP:8411)   (MFG)  rose 0.5%, underperforming the broader market, after weekend media reports said that its Mizuho Bank unit will reprimand 54 current and former staff for failing to take responsibility for loans to borrowers associated with organized crime.

Wednesday, November 27, 2013

Whisper Number: How Will Analog Devices Investors React to Earnings?

Analog Devices, Inc. (NASDAQ:ADI) is expected to report earnings on Tuesday, November 26. The whisper number is $0.57, one cent behind the analysts’ estimate. Analog Devices has a 66 percent positive surprise history, having topped the whisper in 27 of the 41 earnings reports for which we have data.

Earnings history:

- Beat whisper: 27 qtrs
- Met whisper: 2 qtrs
- Missed whisper: 12 qtrs

Our primary focus is on post earnings price movement. Knowing how likely a stock’s price will move following an earnings report can help you determine the best action to take (long or short). In other words, we look at what happens when the company beats or misses the whisper number expectation.

Top Financial Companies For 2014

The table below indicates the average post earnings price movement within a one and thirty trading day timeframe.

ADI1113A

The strongest price movement of +1.0 percent comes within twenty trading days when the company reports earnings that beat the whisper number, and -3.8 percent within thirty trading days when the company reports earnings that miss the whisper number. The overall average price move is ‘as expected’ (beat the whisper number and see strength, miss and see weakness) when the company reports earnings.

The table below indicates the most recent earnings reports and short-term price reaction.

ADI1113B

The company has reported earnings ahead of the whisper number in one of the past four quarters with a whisper number. In the comparable quarter last year, the company did not have a whisper number. Last quarter, the company reported earnings four cents ahead of the whisper number. Following that report, the stock realized a 2.8 percent gain in twenty trading days. Overall historical data indicates the company to be (on average) an ‘as expected’ price reactor when the company reports earnings.

Enter your expectation and view more earnings information here or let us know your expectation in the comments section below.

John Scherr is the founder and President of WhisperNumber.com, an independent financial research firm focused on earnings expectations. He is a regular contributor to CNBC and Fox Business Network, and has been featured in Barron's, The Wall Street Journal, and MarketWatch. He is considered a leading expert on 'whisper numbers' and post earnings price movement analysis. WhisperNumber.com provides specific earnings trade alerts to take advantage of earnings report price movement with their Whisper Reactors subscription service.

Investing Insights: Can Google Continue to Trend Higher?

Tuesday, November 26, 2013

Top 10 High Tech Stocks To Buy For 2014

NEW YORK (TheStreet) -- The Federal Reserve will maintain its $85 billion in monthly asset purchases, the central bank said in its policy-making statement on Wednesday.


Below is the text of the Federal Open Market Committee statement:

For immediate release

Information received since the Federal Open Market Committee met in July suggests that economic activity has been expanding at a moderate pace. Some indicators of labor market conditions have shown further improvement in recent months, but the unemployment rate remains elevated. Household spending and business fixed investment advanced, and the housing sector has been strengthening, but mortgage rates have risen further and fiscal policy is restraining economic growth. Apart from fluctuations due to changes in energy prices, inflation has been running below the Committee's longer-run objective, but longer-term inflation expectations have remained stable.

Top 10 High Tech Stocks To Buy For 2014: Schmitt Industries Inc.(SMIT)

Schmitt Industries, Inc. designs, manufactures, and markets computer-controlled vibration detection and balancing equipment primarily to the machine tool industry in North America, Europe, and Asia. Its Balancer segment offers Schmitt Dynamic Balance System consisting of a computerized control unit, vibration sensor, spindle-mounting adapter, and balance head, as well as an optional acoustical emission monitoring system to monitor the frequency signals generated on the grinding machine. This segment provides its products to manufacturers and operators of grinding machines of automotive, aerospace, medical, and machine tools industries through independent manufacturers? representatives and distributors. The company?s Measurement segment designs, manufactures, and markets a line of laser-based precision test and measurement products; and an ultrasonic product for measuring the fill levels of liquid propane tanks to the manufacturers of hard disk drives, silicon wafers, and optical products, as well as operates a precision laser light scatter measurement laboratory. Its products include surface roughness measurement products that consist of TMS-2000-RC, a non-contact texture measurement system, as well as TMS-2000-DUV-RC, which measures the surface micro roughness of ceramic/glass; distance measurement and dimensional sizing products, which comprises AccuRange series sensors and scanners; and remote tank monitoring products, such as Xact product that detects and measures the capacity and volume of liquid propane tanks. This segment also provides research and other measurement products, including CASI Scatterometers, which measure surface quality, optical performance, smoothness, appearance, defects, and contamination of materials. The company was founded in 1984 and is based in Portland, Oregon.

Top 10 High Tech Stocks To Buy For 2014: Dover Saddlery Inc.(DOVR)

Dover Saddlery, Inc. operates as a specialty retailer and multi-channel marketer of equestrian products in the United States, primarily serving the English-style and Western-style riding industry. Its equestrian product line includes various items, such as saddles, tack, specialized apparel, footwear, horse clothing, horse health, and stable products. The company also offers dressage, eventing, and hunter/jumper products. Dover Saddlery, Inc. sells its products through catalogs, Internet, and retail stores located in Massachusetts, New Hampshire, Delaware, Texas, Virginia, Maryland, New Jersey, Georgia, Colorado, Illinois, and Rhode Island. As of December 31, 2011, it operated 14 stores under the Dover Saddlery and 1 store under the Smith Brothers brand. The company was founded in 1975 and is headquartered in Littleton, Massachusetts.

Top 10 Insurance Companies To Invest In Right Now: Apogee Minerals Ltd. (APE.V)

Apogee Silver Limited engages in the exploration and development of mineral properties in South America. It primarily explores for silver, zinc, and lead deposits. The company�s principal property comprises the Pulacayo-Paca property that covers approximately 34,000 hectares and is located to the east of Uyuni city, Bolivia. It also owns an option to acquire up to 100% interest in the Cachinal Silver project, which consists of 59 concessions covering approximately 16,000 hectares and is located to the southeast of Antofagasta, Chile. The company was formerly known as Apogee Minerals Limited and changed its name to Apogee Silver Limited in March 2011. Apogee Silver Limited was incorporated in 1987 and is headquartered in Toronto, Canada.

Top 10 High Tech Stocks To Buy For 2014: AFI DEVELOPMENT PLC ORD USD0.001 B(AFRB.L)

AFI Development Plc, and investment holding company, operates as a real estate development company in Moscow, the Russian regions, Ukraine, and the Commonwealth of Independent States. It develops and redevelops, leases, and sells commercial and residential real estate assets, including offices, shopping centers, hotels, mixed-use properties, and residential projects. The company was founded in 2001 and is based in Limassol, Cyprus. AFI Development Plc is a subsidiary of Africa Israel Investments Limited

Top 10 High Tech Stocks To Buy For 2014: Mdr Limited (A27.SI)

mDR Limited distributes and retails telecommunications devices and provides mobile related services. It distributes gadgets, and mobile devices and accessories. The company also provides prepaid card services; and after-market services, including retrofit, repair management, and technical services for consumer electronic products and mobile telecommunication equipment. As of November 26, 2012, it operated a network of approximately 50 retail stores under Handphone Shop, 3Mobile shops, Samsung and Nokia concept stores, and Gadget World brand names in Singapore. The company is based in Singapore.

Top 10 High Tech Stocks To Buy For 2014: Lincoln Educational Services Corporation(LINC)

Lincoln Educational Services Corporation provides post-secondary education services in the United States. The company offers degree and diploma programs for recent high school graduates and working adults in the areas of studies, such as health science, automotive technology, skilled trades, business and information technology, and hospitality services. As of December 31, 2011, it had 19,204 enrolled students. The company operates 46 schools in 17 states under Lincoln Technical Institute, Lincoln College of Technology, Lincoln College of New England, Nashville Auto-Diesel College, and Euphoria Institute of Beauty Arts and Sciences brand names, as well as offers online programs. Lincoln Educational Services Corporation was founded in 1946 and is headquartered in West Orange, New Jersey.

Top 10 High Tech Stocks To Buy For 2014: Winnebago Industries Inc.(WGO)

Winnebago Industries, Inc. manufactures and sells recreation vehicles primarily for leisure travel and outdoor recreation activities. The company offers motor homes, which are self-propelled mobile dwellings that provide living accommodations for approximately seven persons and include kitchen, dining, sleeping, and bath areas, as well as a lounge; and optional equipment accessories, such as generators, home theater systems, king-size beds, upholstery, and interior equipment. It manufactures motor homes constructed directly on medium- and heavy-duty truck chassis, which include engine and drivetrain components; and on van-type chassis onto which the motor home manufacturer constructs a living area with access to the driver's compartment under the Winnebago and Itasca brand names, as well as panel-type vans with sleeping, kitchen, and/or toilet facilities under the Era brand name. The company also produces original equipment manufacturing parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. Winnebago Industries markets its motor homes through independent dealers primarily in the United States and Canada. The company was founded in 1958 and is headquartered in Forest City, Iowa.

Advisors' Opinion:
  • [By Grace L. Williams]

    Recreational vehicle maker Winnebago Industries (WGO), which makes, you know, Winnebagos, is trucking today after reporting strong revenue and increased demand in its fourth quarter.

    AP

    For the period ended Aug. 31, Winnebago reported profit of $10.6 million, or 38 cents a share, down from $40.9 million, or $1.41 a share, a year earlier, while sales rose to $214.2 million in the quarter. Analysts polled by Thomson Reuters recently predicted earnings of 28 cents a share and sales of $206 million.

    Looking at the solid quarter and optimistic forecasts, Citigroup analyst Gregory Badishkanian raised estimates after noting several positive factors at the company including the current backlogs, which more than doubled, and dealer inventories, which were up 38%. He writes:

    The company highlighted two issues that appear to be diminishing: 1) towables division was dilutive for the year, but headed in the right direction with a breakeven quarter 2) shortage in Class A Gas chassis, though the issue should be resolved by mid-winter…

    Given strong margin and retail demand trends, we��e raising our 2014 and 2015 estimates by 26 cents each. We introduce our 2016 estimate of $ 1.60.

    Shares of Winnebago have gained 4.4% to $28.47 today at 3pm. Thor Industries (THO), which also makes recreational vehicles, has ticked up 0.1% to $57.56, Drew Industries (DW) has risen 0.3% to $48.74, Arctic Cat (ACAT) has advanced 1% to $59.87 and Polaris Industries (PII) has fallen 0.3% to $132.08.

  • [By David Sterman]

    I took a close look at all of the companies that appeared in the first part of this series, and there were some great companies in the mix. If price were no object, I'd be a huge fan of:

    Oceaneering (NYSE: OII), which is prospering form the ongoing trends toward undersea naval warfare and undersea oil drilling. Oceaneering is poised to grow at a sustained double-digit pace, which is something few other defense contractors can say. Cree (Nasdaq: CREE): LED lighting is a revolutionary game-changer, and Cree's heavy emphasis on R&D is leading the charge towards ever-lower prices for these low-energy light sources that also have remarkable longevity compared to regular bulbs. Still, profit margin gains may be tough in a very competitive environment.  Polaris Industries (NYSE: PII): If Winnebago's (NYSE: WGO) recreational vehicles are suitable for retirees, Polaris has become the go-to name for activity-oriented vehicles. Notably, it has a revenue base that is four times larger than Winnebago as well. If S&P wants to position for future demographic trends, then Polaris is a great choice.

    I love these companies, but I don't love their stock prices, and I'd prefer to wait for some sort of pullback before singing their praises. That said, there are two investment ideas that hold great appeal on their own. If they get added to the S&P 500, then they are also set up for a timely trade.

Top 10 High Tech Stocks To Buy For 2014: MHI Hospitality Corporation(MDH)

MHI Hospitality Corporation, a real estate investment trust (REIT), engages in the ownership and operation of upper upscale and midscale hotels in the mid-Atlantic and southeastern United States. As of March 15, 2006, the company operated seven upper upscale and midscale hotels with 1,673 rooms under the brand names ?Hilton? and ?Holiday Inn?. It also owns leasehold interests in the commercial spaces of the Shell Island Resort, a condominium resort property. The company has elected to be treated as a REIT for federal income tax purposes. As a REIT, it would not be subject to federal income tax, provided it distributes at least 90% of its taxable income to its shareholders. MHI Hospitality has strategic alliance agreement with MHI Hotels Services LLC. The company was founded in 1957 and is based in Williamsburg, Virginia.

Top 10 High Tech Stocks To Buy For 2014: Stevia Corp(STEV.OB)

Stevia Corp., a farm management company, provides various agricultural consulting and solutions to contract growers and other industry growers. It develops Stevia, a zero calorie sweetener used in approximately 6,000 products, including beverages, foods, and medicines. The company also offers farm management services, including research and development, plant breeding, agricultural methodologies, and post-harvest techniques. It has two grower supply contracts and three nursery fields in Vietnam. Stevia Corp. offers its stevia products across 35 countries and 38 categories. The company was formerly known as Interpro Management Corp. and changed its name to Stevia Corp. in March 2011. Stevia Corp. was founded in 2007 and is based in Indianapolis, Indiana.

Top 10 High Tech Stocks To Buy For 2014: Macro Corporation Ltd(MAC.AX)

Macro Corporation Limited, through its subsidiaries, engages in providing cruise boat and diving activities in Australia. It operates daily cruises to Michaelmas Cay and Oyster and Upolu Reef, for diving, snorkeling, and sailing on the Great Barrier Reef; and dinner cruises sailing on the waters of Trinity Inlet, Cairns. The company is based in Cairns, Australia.

Sunday, November 24, 2013

Ask Matt: Where should you invest $15,000?

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.

Q: Where should a 50-year old invest $15,000?

A: With thousands of stocks, mutual funds, bond and other investments to choose from, investors often throw up their hands and do nothing.

But, by being very clear in how much you have to invest, you've already made one of the hardest decisions that stymies many beginning investors. Next, though, you need to understand how much risk you can tolerate. Your threshold for risk will be the biggest determinant of how you should invest.

TRACK YOUR STOCKS: Get real-time quotes with our free Portfolio Tracker

Based on your full question e-mailed to me, you're looking for a simple way to invest money with a brokerage that you don't have to micromanage. For most people looking for a simple way to invest and not worry about it, a blend of a couple exchange-traded funds is usually a blunt but relatively good instrument to use.

Hot Financial Companies To Buy Right Now

One simple strategy would be to put $7,500 of your money in a Standard & Poor's 500 ETF, such as the Vanguard S&P 500 ETF, which trades by the symbol VOO. You could pair that by putting the other $7,500 into the Vanguard Total Bond Market ETF (symbol: BND). Be sure to check with your broker, since it might offer comparable ETFs that come with lower trading commissions.

You can certainly get fancier as you build your savings and add to your portfolio. But for just starting out, this basic asset allocation will get you started.

Saturday, November 23, 2013

J.C. Penney to leave S&P 500 after stock decline

Best Stocks To Buy

SAN FRANCISCO (MarketWatch) -- S&P Dow Jones Indices said late Friday that J.C. Penney (JCP) would be leaving the S&P 500 (SPX) upon the close of trading Nov. 29 after its market cap no longer made it suitable for the large-cap index of stocks. It will be replaced by Allegion, a soon-to-be-public spinoff of Ingersoll-Rand (IR) , which will remain in the S&P 500. J. C. Penney will replace Aéropostale Inc. (ARO) in the S&P MidCap 400, which in turn will replace Corinthian Colleges (COCO) in the S&P SmallCap 600. Even including an 18% recovery in price this month, J.C. Penney shares have dropped 55% this year, leaving it with a market cap of $2.7 billion. The lowest market cap stock on the index Friday was Abercrombie & Fitch (ANF) . J.C. Penney shares fell 1% after hours.

Friday, November 22, 2013

Top 5 Warren Buffett Companies To Own In Right Now

As highly as we Fools think of Warren Buffett and�Berkshire Hathaway (NYSE: BRK-B  ) , we'd be foolish (with a lower-case "f") to believe any company is truly without risk.

With that in mind, here are six ways Berkshire could potentially fail investors going forward:

1. Losing to the market on Buffett's terms
Over the years, Buffett has largely made his name by identifying stocks whose share prices have lagged the intrinsic value of their underlying businesses. As a result, it should come as no surprise that Buffett believes the best way to measure Berkshire's performance is by calculating its book value.

Sure enough, as I noted�last month, Buffett himself lamented Berkshire's respectable 2012 book value growth of 14.4% as "subpar" after it fell short of the S&P 500's 16% gain.

What's more, while Buffett�has�helped Berkshire's book value per share rise an astounding�586,817% over the past 48 years (seriously -- that's no typo!), he readily admits that, with Berkshire's enormous capital base, its book value per share going forward will probably have a hard time�increasing "at a rate even close to its past rate."

Top 5 Warren Buffett Companies To Own In Right Now: China Natural Resources Inc.(CHNR)

China Natural Resources, Inc., through its subsidiaries, engages in the acquisition and exploitation of mining rights. The company involves in the exploration, extraction, processing, and sale of iron, zinc, and other nonferrous metals extracted or produced at mines primarily located in Anhui Province in the People?s Republic of China. It also involves in the exploration, acquisition, construction, development, and operation of coal mines located in Guizhou Province, the People?s Republic of China. The company is based in Central, Hong Kong.

Top 5 Warren Buffett Companies To Own In Right Now: Csm Systems Corp (CKX.V)

CSM Systems Corp., through its subsidiary, Visionstate Inc., develops, installs, and customizes interactive touch screen customer service technology suitable for various types of public spaces. Its core software platform is known as ViCCi, an acronym for virtual customer care interface. The company offers building digital display networks and digital sales assistants to customers, including shopping centers, recreation centers, office buildings, and other places that require wayfinding. It also provides mobile iphone applications; and sells its kiosks to home development project for displaying information about the project. In addition, the company offers consulting, graphic, and Web design and related services and support. CSM Systems Corp. is based in Edmonton, Canada.

Top 10 Penny Companies To Buy Right Now: Teradata Corporation(TDC)

Teradata Corporation provides analytic data solutions worldwide. The company offers various data warehousing solutions that comprise software, hardware, and related business consulting and support services. Its solutions integrate an organization?s departmental and enterprise-wide data about customers, financials, operations, and others into a single enterprise-wide data warehouse. The company also provides various software and hardware products, including Teradata Analytic Database Software, which delivers near real-time intelligence; Teradata Platform Family for the hardware component; Teradata Logical Data Models that are blueprints for designing an integrated data warehouse; Teradata Aster MapReduce Platform, a platform for analyzing new multi-structured data sources and data types; and Teradata Integrated Analytics to convert traditional data warehouse into an analytic services environment. In addition, it offers Teradata Analytic Applications and Tools comprising da ta mining, master data management, integrated marketing management, enterprise risk management, finance and performance management, demand and supply chain management, and profitability analytics to solve business problems. Further, the company provides consulting services, such as data warehousing business impact modeling, design, architecture, installation, implementation, and optimization consulting services, as well as enterprise analytics consulting, data management, and managed services; customer support services; and training services. It serves various companies in banking/financial services, media and entertainment, government, insurance and healthcare, manufacturing, retail, telecommunications, transportation, and travel industries. The company has strategic partnerships with Accenture, Capgemini, Cognizant, Computer Sciences Corporation, Deloitte, IBM Global Business Services, and Wipro Limited. Teradata Corporation was founded in 1979 and is headquartered in Dayt on, Ohio.

Advisors' Opinion:
  • [By Tim Melvin]

    It has been almost as silly in the other direction, too. Traders knocked billions off the market cap of Stanley Black & Decker (SWK) after the company actually reported a 44% improvement in earnings. And�Teradata (TDC) saw its corporate value trimmed by something like $1.5 billion after the company lowered its forecast.

  • [By Rich Duprey]

    Wearing the dunce cap
    Not nearly as dramatic a drop or for reasons as good as those that brought Exide low, Teradata (NYSE: TDC  ) tumbled 7.5% yesterday after analysts at Morgan Stanley removed the stock from their "Best Ideas" list. While that seems like a pretty specious reason for investors to dump the stock, the analyst also cut her revenue and profit estimates as industry rivals like Oracle� (NYSE: ORCL  ) and Tibco Software� (NASDAQ: TIBX  ) experience a slowdown in growth.

Top 5 Warren Buffett Companies To Own In Right Now: Opexa Therapeutics Inc.(OPXA)

Opexa Therapeutics, Inc., a biopharmaceutical company, develops patient-specific cellular therapies for the treatment of autoimmune diseases. Its principal product includes Tovaxin, a personalized cellular immunotherapy treatment that completed Phase IIb clinical study for multiple sclerosis. Tovaxin is derived from T-cells isolated from peripheral blood, expanded ex vivo, and reintroduced into the patients via subcutaneous injections. The company was formerly known as PharmaFrontiers Corp. and changed its name to Opexa Therapeutics, Inc. in June 2006. Opexa Therapeutics, Inc. was founded in 2003 and is based in The Woodlands, Texas.

Advisors' Opinion:
  • [By CRWE]

    Opexa Therapeutics, Inc. (NASDAQ:OPXA), a biotechnology company developing a novel T-cell therapy for multiple sclerosis (MS), reported that the Company is rebranding its leading MS therapy with the new name Tcelna(TM).

Top 5 Warren Buffett Companies To Own In Right Now: Robert Walters Plc(RWA.L)

Robert Walters plc provides professional recruitment services on a permanent, contract and interim basis primarily in the United Kingdom, Europe, the Asia Pacific, the Americas, and South Africa. It offers its recruitment services in the areas of accountancy and finance, banking, engineering, operations, legal, information technology, sales and marketing, supply chain, procurement and logistics, human resources, secretarial, and support and administration. The company also provides recruitment process outsourcing services, consultancy, and payroll services. It serves the clients in the financial, commercial, and industrial sectors. The company was founded in 1985 and is headquartered in London, the United Kingdom.

Thursday, November 21, 2013

3 Stocks Under $10 Triggering Breakout Trades

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Stocks Set to Soar on Bullish Earnings

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Big Stocks to Trade for Big Gains

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.

MiMedx Group

MiMedx Group (MDXG) is an integrated developer, manufacturer and marketer of patent protected regenerative biomaterial products and allografts processed from human amniotic membrane. This stock closed up 5.8% to $5.84 in Tuesday's trading session.

Tuesday's Range: $5.50-$5.98

52-Week Range: $1.81-$7.73

Tuesday's Volume: 928,000

Three-Month Average Volume: 494,935

From a technical perspective, MDXG ripped sharply higher here right off its 200-day moving average of $5.66 with strong upside volume. This move pushed shares of MDXG into breakout territory, since the stock took out some near-term overhead resistance at $5.76. Shares of MDXG are now quickly moving within range of triggering another big breakout trade. That trade will hit if MDXG manages to take out Tuesday's high of $5.98 to more resistance at $5.99 with high volume.

Traders should now look for long-biased trades in MDXG as long as it's trending above some key near-term support at $5.24 or above its 50-day at $4.92, and then once it sustains a move or close above those breakout levels with volume that's near or above 494,935 shares. If that breakout hits soon, then MDXG will set up to re-test or possibly take out its next major overhead resistance levels at $6.50 to $6.75.

Superconductor Technologies

Superconductor Technologies (SCON) develops high-temperature superconductor materials and related technologies. This stock closed up 7.4% to $2.02 in Tuesday's trading session.

Tuesday's Range: $1.79-$2.12

52-Week Range: $1.42-$6.72

Tuesday's Volume: 1.08 million

Three-Month Average Volume: 417,158

From a technical perspective, SCON ripped sharply higher here right above its 50-day moving average of $1.75 with heavy upside volume. This move is quickly pushing shares of SCON within range of triggering a near-term breakout trade. That trade will hit if SCON manages to take out Tuesday's high of $2.12 to some more key resistance levels at $2.21 to $2.35 with high volume.

Traders should now look for long-biased trades in SCON as long as it's trending above its 50-day at $1.75 and then once it sustains a move or close above those breakout levels with volume that hits near or above 417,158 shares. If that breakout hits soon, then SCON will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day of $2.62 to $2.85. Any high-volume move above those levels will then give SCON a chance to tag $3.25 to $3.50.

Prosensa Holding

Prosensa Holding (RNA) is engaged in the discovery and development of RNA-modulating therapeutics for the treatment of rare genetic disorders. This stock closed up 8.3% to $3.90 in Tuesday's trading session.

Tuesday's Range: $3.60-$4.08

52-Week Range: $3.43-$34.55

Tuesday's Volume: 229,000

Three-Month Average Volume: 633,977

From a technical perspective, RNA ripped sharply higher here right above some near-term support at $3.46 to $3.43 with lighter-than-average volume. This move is quickly pushing shares of RNA within range of triggering a near-term breakout trade. That trade will hit if RNA can manage to take out Tuesday's high of $4.08 to some more near-term overhead resistance at $4.10 with high volume.

Traders should now look for long-biased trades in RNA as long as it's trending above $3.46 or above its 52-week low of $3.43 and then once it sustains a move or close above those breakout levels with volume that hits near or above 633,977 shares. If that breakout hits soon, then RNA will set up to re-test or possibly take out its next major overhead resistance levels at $4.63 to $4.85. Any high-volume move above those levels will then give RNA a chance to tag $5.50 to $6.

Hot Penny Stocks To Watch Right Now

To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>5 Stocks Poised for Breakouts



>>5 Stocks Under $10 Set to Soar



>>5 Rocket Stocks for Another Week of New Highs

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


Sunday, November 17, 2013

Similar Credit Scores Means Fewer Divorces

NEW YORK (TheStreet) -- Go to a dating site and you'll see a zillion lonely hearts who yearn for long walks on the beach and cuddles before a fire, and the sites' new-member questionnaires are full of queries on exercise habits, political views, feelings about children and other, well, irrelevant issues.

Because what really matters is credit scores.

At least, that's one implication of some research on what makes for a solid marriage. People who enter a marriage with similar credit scores have a much better chance of going the distance than partners with scores that are very different, according to a study by two Federal Reserve Board researchers, Jane Dokko and Geng Li.

It's long been understood that money and children are hot-button marital issues, but until now there's been no rigorous academic research on credit scores. Also see: What to Do When Divorce Literally Divides a Home>> "Credit scores convey unique and often unobserved information about consumers, including their loan payment histories and default behavior, as well as their levels of indebtedness and tastes for debt," the researchers conclude. "In addition, credit scores arguably proxy for trustworthiness by measuring the likelihood that an individual will repay and honor a debt obligation." The researchers looked at data on tens of millions of couples from 1999 through last year. Though it wouldn't make for a good Jane Austen novel, in which impoverished ingenues seek rich heirs, the research shows that people, in recent years at least, tend to marry people with similar credit scores. Those who don't have a much greater chance of suffering "financial distress and household dissolution." That doesn't mean people are asking their dates to sign credit-release forms, but it suggests that one way or another prospective spouses look for mates with similar financial habits and views. The researchers also found that spouses who start with very different credit scores have a better chance of staying together if their scores become similar over time than if they don't. Also see: 3 Milestones to Look Out For in Used Car Values>> All those other characteristics, such as political and religious views, do matter. But the research suggests that even spouses compatible on many levels face a bigger chance of trouble if they aren't financially simpatico. Though the researchers don't get into it, it is possible for some financial disconnects to be fixed, especially if they come from bad habits rather than philosophical conflicts. A poor credit rating, for example, can be the result of sloppy bill-paying habits rather than a true lack of trustworthiness. You can make your credit score better, and that's a lot easier than making yourself taller or more exotic. So any prospective couple would be well advised to discuss financial habits and philosophies, savings habits and so forth. And it pays to set up an easy-to-use, stress-free financial system using money-tracking programs such as Quicken and Mint.com. That will work even better with online bill paying and alert services that use text messages and email to tell you when bills are due and accounts are running low or nearing credit limits. What do you do if you cling to the romantic notion that opposites attract? Before the wedding, the researches suggest, get some counseling -- the financial kind.

Saturday, November 16, 2013

Best Bank Companies To Watch For 2014

Bank of Montreal� (NYSE: BMO  ) �announced yesterday�its third-quarter dividend of $0.74 per share, the same rate it paid last quarter.

The board of directors said the quarterly dividend is payable on Aug. 27 to the holders of record at the close of business on Aug. 1. BMO Financial Group�is reportedly the longest-running dividend-paying company in Canada with a policy to pay out 40% to 50% of its earnings over time.

Additionally the board declared dividends for eight series of Class B preferred shares as follows:

$0.28125 a share for Series 13 $0.328125 a share for Series 14 $0.3625 a share for Series 15 $0.325 a share for Series 16 $0.40625 a share for Series 18 $0.40625 a share for Series 21 $0.3375 a share for Series 23 $0.24375 a share for Series 25

The dividends on the preferred shares are payable on Aug. 26 to shareholders of record on Aug. 1.

The regular dividend payment equates to a $2.96-per-share annual dividend, yielding 4.9% based on the closing price of BMO's stock on May 29.

Best Bank Companies To Watch For 2014: Wells Fargo & Company(WFC)

Wells Fargo & Company, through its subsidiaries, provides retail, commercial, and corporate banking services primarily in the United States. The company operates in three segments: Community Banking; Wholesale Banking; and Wealth, Brokerage, and Retirement. The Community Banking segment offers deposits, including checking, market rate, and individual retirement accounts; savings and time deposits; and debit cards. Its loan products comprise lines of credit, auto floor plans, equity lines and loans, equipment and transportation loans, education loans, residential mortgage loans, health savings accounts, and credit cards. This segment also provides equipment leases, real estate financing, small business administration financing, venture capital financing, cash management, payroll services, retirement plans, loans secured by autos, and merchant payment processing services; purchases sales finance contracts from retail merchants; and a family of funds, and investment managemen t services. The Wholesale Banking segment offers commercial and corporate banking products and services, including commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, trade financing, collection services, foreign exchange services, treasury and investment management, institutional fixed-income sales, commodity and equity risk management, insurance, corporate trust fiduciary and agency services, and investment banking services. This segment also provides banking products for commercial real estate market, and real estate and mortgage brokerage services. The Wealth, Brokerage, and Retirement segment offers financial advisory, brokerage, and institutional retirement and trust services. As of December 31, 2010, the company served its customers through approximately 9,000 banking stores in 39 States and the District of Columbia. Wells Fargo & Company was founded in 1929 and is headquartered in San Franci sco, California.

Advisors' Opinion:
  • [By Amanda Alix]

    Other banks were involved, too
    Bank of America was by no means the only lender to possibly engage in this behavior. Last February, Wells Fargo (NYSE: WFC  ) learned�that a complaint against itself and QBE Insurance had been given class action status in Florida, while two months later, Fifth Third Bank (NASDAQ: FITB  ) was sued�by homeowners alleging that Fifth Third engaged in the same type of conduct, setting up a reinsurance company through which insurance money was funneled.

  • [By Matt Koppenheffer]

    I sorted based on the ratio between the "customer related" terms and the "bottom line" terms. It shouldn't be all that surprising that among the top three banks are two --�Goldman Sachs�and�Wells Fargo� (NYSE: WFC  ) -- that are generally vocal about their customer focus. Front and center in Wells Fargo's annual report, the company states: "Our vision is to satisfy all our customers' financial needs, help them succeed financially, be recognized as the premier financial services company in our markets and be one of America's great companies." And Goldman's No. 1�business principal is, "Our clients' interests always come first."

  • [By Dr. Melvin Pasternak]

    Last week, shares jumped several dollars to a new all-time high on news that Wells Fargo (NYSE: WFC) revised its rating to "outperform." Then, on Monday, the stock soared nearly 5% to another new high at $126.05, breaking out of a rectangle formation.

Best Bank Companies To Watch For 2014: First Republic Bank (FRC)

First Republic Bank is a full-service bank and wealth management firm. First Republic Bank and its subsidiaries provide private banking, private business banking and private wealth management, including investment, trust and brokerage services. The Company specializes in delivering service through offices in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland, Boston, Greenwich and New York City. The Company's products and services include residential lending, commercial real estate lending, personal lending, private business banking, deposit services, trust services, brokerage services and investment management services. Investment advisory services are provided by First Republic Investment Management, Inc. Trust services are provided by First Republic Trust Company. Brokerage services are offered through First Republic Securities Company, LLC. In March 2012, the Company announced the opening of a new trust company.

The Company offers full-service banking on both coasts, including free online banking, free bill pay and free access to over 800, 000 automated teller machines (ATMs) worldwide. Its private business banking provides specialized services for accounting firms, architecture and design, art and antique dealers, business management firms, business partnership, entertainment/media, entrepreneurs, family offices, financial services, independent school, investment firms, law firms, medical firms, non-profit organizations, private equity funds, property management firms, real estate investors, venture capital funds, wineries, and yacht, golf, city and country clubs. The Company�� private wealth management offers customized investment management, trust, and brokerage services for individuals, trust endowments, and pension plans. Wealth management services include asset allocation, trust administration and custody, portfolio management, financial and estate planning, manager selection and comprehensive brokerage services.

Advisors' Opinion:
  • [By Monica Gerson]

    First Republic Bank (NYSE: FRC) is estimated to report its Q3 earnings at $0.76 per share on revenue of $320.72 million.

    Renasant (NASDAQ: RNST) is expected to post its Q3 earnings at $0.31 per share on revenue of $60.87 million.

Best China Stocks To Own For 2014: BB&T Corp (BBT)

BB&T Corporation (BB&T) is a financial holding company. BB&T conducts its business operations primarily through its commercial bank subsidiary, Branch Banking and Trust Company (Branch Bank), which has offices in North Carolina, Virginia, Florida, Georgia, Maryland, South Carolina, Alabama, West Virginia, Kentucky, Tennessee, Texas, Washington D.C and Indiana. In addition, BB&T�� operations consist of a federally chartered thrift institution, BB&T Financial, FSB (BB&T FSB), and a number of nonbank subsidiaries, which offer financial services products. BB&T�� operations are divided into six business segments: Community Banking, Residential Mortgage Banking, Dealer Financial Services, Specialized Lending, Insurance Services, and Financial Services. Branch Bank provides a range of banking and trust services for retail and commercial clients in its geographic markets, including small and mid-size businesses, public agencies, local Governments and individuals, through 1,779 offices as of December 31, 2011. During the year ended December 31, 2011, BB&T announced the acquisitions of Liberty Benefit Insurance Services, Atlantic Risk Management Corporation and the Precept Group. In April 2012, it acquired the life and property and casualty insurance operating divisions of Roseland, New Jersey - based Crump Group Inc. On July 31, 2012, it acquired BankAtlantic.

As of December 31, 2011, the principal operating subsidiaries of BB&T included Branch Banking and Trust Company, Winston-Salem, North Carolina; BB&T Financial, FSB, Columbus, Georgia; Scott & Stringfellow, LLC, Richmond, Virginia; Clearview Correspondent Services, LLC, Richmond, Virginia; Regional Acceptance Corporation, Greenville, North Carolina; American Coastal Insurance Company, Davie, Florida, and Sterling Capital Management, LLC, Charlotte, North Carolina. Branch Bank�� principal operating subsidiaries include BB&T Equipment Finance Corporation, BB&T Investment Services, Inc., BB&T Insurance Services, Inc., Stanley, Hunt, DuPree! & Rhine (a division of Branch Bank), Prime Rate Premium Finance Corporation, Inc., Grandbridge Real Estate Capital, LLC, Lendmark Financial Services, Inc., CRC Insurance Services, Inc. and McGriff, Seibels & Williams, Inc.

Community Banking

BB&T�� Community Banking serves individual and business clients by offering a range of loan and deposit products and other financial services. As of December 31, 2011, Community Banking had a network of 1,779 banking.

Residential Mortgage Banking

Residential Mortgage Banking segment retains and services mortgage loans originated by Community Banking, as well as those purchased from various correspondent originators. Mortgage loan products include fixed and adjustable rate Government and conventional loans for the purpose of constructing, purchasing or refinancing residential properties. Substantially all of the properties are owner occupied. BB&T retains the servicing rights to all loans sold. Residential Mortgage Banking earns interest on loans held in the warehouse and portfolio, fee income from the origination and servicing of mortgage loans and recognizes gains or losses from the sale of mortgage loans. BB&T�� mortgage originations totaled $23.7 billion in 2011. BB&T�� residential mortgage servicing portfolio, which includes both retained loans and loans serviced for third parties, totaled $91.6 billion in 2011.

Dealer Financial Services

Dealer Financial Services originates loans to consumers on a prime and nonprime basis for the purchase of automobiles. Such loans are originated on an indirect basis through approved franchised and independent automobile dealers throughout the BB&T market area and nationally through Regional Acceptance Corporation. This segment also originates loans for the purchase of boats and recreational vehicles originated through dealers in BB&T�� market area. In addition, financing and servicing to dealers for their inventories is provided through a ! joint rel! ationship between Dealer Financial Services and Community Banking.

Specialized Lending

BB&T�� Specialized Lending consists of eight business units that provide specialty finance products to consumers and businesses. The internal business units include Commercial Finance that contains commercial finance and mortgage warehouse lending; and, Governmental Finance that is responsible for tax-exempt Government finance. Operating subsidiaries include BB&T Equipment Finance which provides equipment leasing within BB&T�� banking footprint; Sheffield Financial, a division of FSB Financial, a dealer-based financer of equipment for both small businesses and consumers; Lendmark Financial Services, a direct consumer finance lending company; Prime Rate Premium Finance Corporation, which includes AFCO and CAFO, insurance premium finance business units that provide funding to businesses in the United States and Canada and to consumers in certain markets within BB&T�� banking footprint, and Grandbridge Real Estate Capital, a commercial mortgage banking lender providing loans on a national basis.

Insurance Services

BB&T Insurance Services provides property and casualty, life and health insurance to businesses and individuals. It also provides small business and corporate products, such as workers compensation and professional liability, as well as surety coverage and title insurance. In addition, Insurance Services also underwrites a limited amount of property and casualty coverage.

Financial Services

Financial Services provides personal trust administration, estate planning, investment counseling, wealth management, asset management, employee benefits services, corporate banking and corporate trust services to individuals, corporations, institutions, foundations and Government entities. Financial Services also offers clients investment alternatives, including discount brokerage services, equities, fixed-rate and variable-rate annuiti! es, mutua! l funds and governmental and municipal bonds through BB&T Investment Services, Inc., a subsidiary of Branch Bank. Financial Services includes Scott & Stringfellow, LLC, a brokerage and investment banking firm. Scott & Stringfellow provides services in retail brokerage, equity and debt underwriting, investment advice, corporate finance and equity research and facilitates the origination, trading and distribution of fixed-income securities and equity products in both the public and private capital markets. Scott & Stringfellow also has a public finance department that provides investment banking services, financial advisory services and municipal bond financing. Scott & Stringfellow�� investment banking and corporate and public finance areas conduct business as BB&T Capital Markets. This segment includes BB&T Capital Partners that is a group of BB&T-sponsored private equity and mezzanine investment funds that invest in privately owned middle-market operating companies. Financial Services also includes the Corporate Banking Division that originates and services corporate relationships, syndicated lending relationships and client derivatives.

Advisors' Opinion:
  • [By Amanda Alix]

    How dangerous?
    Cyber attacks on websites, particularly the DDoS-type of disruption, first began in 2001. Back then, sites like eBay (NASDAQ: EBAY  ) and Yahoo! (NASDAQ: YHOO  ) were targeted, possibly in an attempt to disrupt e-commerce. Since then, groups like Izz ad-Din-as-Qassam or groups tied to the Iranian government have staged assaults on the websites of big banks like�Bank of America (NYSE: BAC  ) , Wells Fargo (NYSE: WFC  ) , and Citgroup (NYSE: C  ) , as well as large regionals such as BB&T (NYSE: BBT  ) and PNC Financial.

  • [By Amanda Alix]

    Citi, B of A still at risk
    Similarly, there is little good news as far as the most vulnerable banks are concerned. Bank of America dropped to No. 3�from No. 1, certainly nothing to brag about, while Citi moved up from second place to take the top spot. Interestingly, BB&T (NYSE: BBT  ) now holds spot No. 2, quite a turnaround from the last survey -- though, when it comes to mortgage servicing, this bank trounces all others.

  • [By Eric Volkman]

    The vault is open at BB&T (NYSE: BBT  ) and dividends are flowing to investors. The financial services company has declared its latest set of distributions, most prominently a common stock payout of $0.23 per share. It will also hand out disbursements to holders of its Series D, E, F, and G preferred stock. For Series D, this will amount to $365.625 (the equivalent of $00.365625 per depositary share, which represents 1/1000th interest in the underlying security). For Series E, $351.5625 ($0.3515625), and for both Series F and G, $325.00 ($0.325).

  • [By Jon C. Ogg]

    BB&T Corp. (NYSE: BBT) was raised to Outperform from Perform at Oppenheimer.

    Cisco Systems Inc. (NASDAQ: CSCO) was reiterated as Buy with a $29 price target (versus a $23.43 close) at Argus.

Best Bank Companies To Watch For 2014: Mitsubishi UFJ Financial Group Inc (MTU)

Mitsubishi UFJ Financial Group, Inc. (MUFJ), incorporated on April 2, 2001, is a holding company for The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Mitsubishi UFJ Trust and Banking Corporation (MUTB), Mitsubishi UFJ Securities Holdings Co., Ltd. (MUSHD), Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.( MUMSS), Mitsubishi UFJ NICOS Co., Ltd. (Mitsubishi UFJ NICOS) and other companies engaged in a range of financial businesses. Its services include commercial banking, trust banking, securities, credit cards, consumer finance, asset management, leasing and fields of financial services. In May 2010, the Company and Morgan Stanley formed two joint ventures in Japan by integrating our respective Japanese securities companies engaged in investment banking and securities businesses. The Company converted the wholesale and retail securities businesses conducted in Japan by the former MUS into one of the joint venture entities, which is named MUMSS. Morgan Stanley contributed the investment banking operations conducted in Japan by its formerly wholly owned subsidiary, Morgan Stanley Japan Securities Co., Ltd. (MSJS) into MUMSS and converted the sales and trading and capital markets businesses conducted in Japan by MSJS into a second joint venture entity called Morgan Stanley MUFG Securities, Co., Ltd.

Integrated Retail Banking Business Group

The Integrated Retail Banking Business Group covers all domestic retail businesses, including commercial banking, trust banking and securities businesses, and enables the Company to offer a range of banking products and services, including financial consulting services, to retail customers in Japan. This business group integrates the retail business of BTMU, MUTB and MUMSS, as well as retail product development, promotion and marketing in a single management structure. Many of its retail services are offered through its network of MUFG Plazas providing individual customers with access to its financial product offerings of integrated commercial b! anking, trust banking and securities services.

The Company offers a range of bank deposit products, including a non-interest-bearing deposit account that is redeemable on demand and intended for payment and settlement functions, and is insured without a maximum amount limitation. It also offers a variety of asset management and asset administration services to individuals, including savings instruments, such as current accounts, ordinary deposits, time deposits, deposits at notice and other deposit facilities. MUFJ also offers trust products, such as loan trusts and money trusts, and other investment products, such as investment trusts, performance-based money trusts and foreign currency deposits.

The Company creates portfolios by combining savings instruments and investment products. It also provide a range of asset management and asset administration products, as well as customized trust products for high-net-worth individuals, as well as advisory services relating to the purchase and disposal of real estate and effective land utilization, and testamentary trusts. The Company provides a varied line up of investment trust products allowing its customers to choose products according to their investment needs through BTMU, MUTB and MUMSS, as well as kabu.com Securities, which specializes in online financial services. In the fiscal year ended March 31, 2010, BTMU offered a total of five investment trusts. As of the end of March 2010, BTMU offered its clients a total of 73 investment trusts.

The Company offers securities, including publicly offered stocks, foreign and domestic investment trusts, Japanese government bonds, foreign bonds and various other products. The Company offers housing loans, card loans and other loans to individuals. With respect to housing loans, in addition to housing loans incorporating health insurance for seven major illnesses, BTMU began offering in June 2009 preferential interest rates under its Environmentally Friendly Support program ! to custom! ers who purchase environment-conscious houses (like houses with solar electric systems), which meet specific criteria in response to increasing public interest in environmental issues. In September 2009, BTMU launched housing loans with home mortgage insurance, which BTMU jointly developed with the Japan Housing Finance Agency, a governmental agency under the Japanese government�� economic stimulus measures, under which the agency indemnifies BTMU for losses from housing loans.

The Company offers products and services through a range of channels, including branches, automated teller machines (ATMs) (including convenience store ATMs shared by multiple banks), Mitsubishi-Tokyo UFJ Direct (telephone, Internet and mobile phone banking), the Video Counter and postal mail. It offers integrated financial services combining its banking, trust banking and securities services at MUFG Plazas. These Plazas provide retail customers with integrated and flexible suite of services at one-stop outlets. As of March 31 2010, the Company provided those services through 47 MUFG Plazas. The Company offers MUTB�� trust related products and advisory services through its trust agency system not only for MUTB customers but also for BTMU and MUMSS customers. As of March 31, 2010, BTMU engaged in eight businesses as the trust banking agent for MUTB: testamentary trusts, inheritance management, asset succession planning, inheritance management agency operations, business management financial consulting, lifetime gift trusts, share disposal trusts, and marketable securities administration trusts.

Integrated Corporate Banking Business Group

The Integrated Corporate Banking Business Group covers all domestic and overseas corporate businesses, including commercial banking, investment banking, trust banking and securities businesses, as well as UnionBanCal Corporation (UNBC). UNBC is a wholly owned subsidiary of BTMU and a US bank holding company with Union Bank being its primary subsidiary. T! he Compan! y provides various financial solutions, such as loans and fund management, remittance and foreign exchange services. It also helps its customers develop business strategies, such as inheritance-related business transfers and stock listings.

It offers advanced financial solutions to companies through corporate and investment banking services. Product specialists globally provide derivatives, securitization, syndicated loans, structured finance and other services. It also provides investment banking services, such as merger and acquisition (M&A) advisory, bond and equity underwriting. It provides online banking services that allow customers to make domestic and overseas remittances electronically. It also provides a global cash pooling/netting service, and the Treasury Station, a fund management system for a multi-company group. The Company�� global Corporate and Investment Banking business (Global CIB), primarily serves companies, financial institutions, and sovereign and multinational organizations with a set of solutions for their financing needs.

Integrated Trust Assets Business Group

The Integrated Trust Assets Business Group covers asset management and administration services for products, such as pension trusts and security trusts by integrating the trust banking expertise of MUTB and the international strengths of BTMU. The business group provides a range of services to corporate and pension funds, including stable and secure pension fund management and administration, advice on pension schemes, and payment of benefits to scheme members. Its Integrated Trust Assets Business Group combines MUTB�� trust assets business, comprising trust assets management services, asset administration and custodial services, and the businesses of Mitsubishi UFJ Global Custody S.A., Mitsubishi UFJ Asset Management Co., Ltd. and KOKUSAI Asset Management Co., Ltd.

Advisors' Opinion:
  • [By Jim Jubak]

    I think you can use shares of Japanese exporters-such as Toyota Motors (TM)-or Japanese financials-such as Mitsubishi UFJ Financial Group (MTU)-as trading vehicles for this move. I mention both because they trade as very liquid ADRs in New York. If you trade in Tokyo, you should look at exporters more leveraged to the yen than Toyota-such as Hino Motors (JP:7205 in Tokyo) or Mazda Motor (JP:7261)-or real estate development companies with more yen sensitivity than more diversified financials-such as Sumitomo Realty and Development (JP:8830). Toyota and Mitsubishi UFJ are both members of my Jubak's Picks portfolio.

  • [By Jeff Reeves]

    And though Mitsubishi UFJ Financial (MTU) has already tacked on an impressive 55% return since last November, there is still upside as Japan squeezes out a bit more growth and as the yen continues to trade at deep discounts to the Euro or the U.S. dollar.

  • [By Jim Jubak, Senior Markets Editor, MoneyShow.com]

    The one currency that is running against the weak dollar tide is the Japanese yen. The yen initially climbed on the Fed's no taper decision—rising to 97.75 on the news—but then fell all the way back to 99 yen to the dollar and finished yesterday at 99.42. (Remember that since the yen is quoted in yen to the dollar, a higher number is a sign of a weak yen and a smaller number means the yen is getting stronger.) The thinking seems to be that the recent Japanese trade deficit will push the Bank of Japan to further weaken the yen, in order to boost Japanese exports. I continue to think that the yen will finish 2013 at weaker levels than current trading, and that leads me to continue to hold positions in Japanese stocks such as Toyota Motor (TM) and Mitsubishi UFJ Financial Group (MTU). Both stocks are members of my Jubaks Picks portfolio.

  • [By Dan Carroll]

    Mitsubishi UFJ (NYSE: MTU  ) also plunged in the Japanese financial sector's sell-off, with the firm's stock dropping 12.3% over the week. This firm faced more of a threat from Thursday's action, however: Japan's benchmark bond yield climbed to its highest level in more than a year, and Mitsubishi is the largest lender by assets in the country and holds more than 48 million yen in government bonds. Bond yields are still coming off of record lows, so Mitsubishi's hardly in a dangerous place. The firm's attempts to expand recently may also help boost revenue at a company that posted declining net income in its most recent quarter.

Best Bank Companies To Watch For 2014: Bank of Nova Scotia (BNS)

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

    Mosaic (MOS), Agrium (AGU), Intrepid Potash (IPI) and CF Industries (CF) have been moving and trading hand-in-hand, with AGU, BHP and Rentech Nitrogen Partners LP (RNF) trading the best, losing the least and rebounding the most since July 30th. IPI has sold off a lot more in the post-news period, as would be expected from a smaller, less established company with mine projects still in development. BHP Billiton Ltd. (BHP) announced plans to proceed with its Jansen Mine Project in Saskatchewan, Canada, potentially tapping the largest and longest-lasting supply in the world known at this time. Scotiabank (BNS) recently commented on Jansen, stating that the added supply "could add the equivalent of 18%-20% of the potash market over recent years." Nearly all of the companies mentioned have had a pretty predictable mix of upgrades and downgrades. That's what makes a market.

  • [By Dan Caplinger]

    On Tuesday, Bank of Nova Scotia (NYSE: BNS  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed, kneejerk reaction to news that turns out to be exactly the wrong move.

Best Bank Companies To Watch For 2014: Northern Trust Corporation(NTRS)

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

Advisors' Opinion:
  • [By Selena Maranjian]

    Northern Trust (NASDAQ: NTRS  )

    To earn their high scores, the companies above engaged in a variety of good practices, including applying their human rights policy to their suppliers and vendors, and committing to quantifiable targets and goals.

  • [By Holly LaFon]

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

Friday, November 15, 2013

Weekend Edition – The Perils of Chasing Yield

Income investors, for the most part, look for investments with attractive, and sometimes large, yields. Whether it is with dividend stocks, bonds, or some other sort of asset class, income investors want a good return on their investments, and they will search high and low to find these yields. However, at certain times it can be difficult to find attractive, low risk yields, especially when the central banks in developed countries lower interest rates. In a low interest rate environments like this, income investors will break from their normally risk-averse nature and seek out higher-yield investments in risky assets. While this speculative strategy might work for a short while, it can come back to bite investors if they are not careful. As recent developments in emerging financial markets show, there can be unnecessary perils to this sort of yield chasing strategy.

How Did This Era of Yield Chasing Arise?

Following the bursting of the housing bubble, the financial crisis, and the Great Recession, the Federal Reserve lowered the federal funds rate to near zero, which was a monetary policy tool intended to lower short-term interest rates to stimulate the economy. Furthermore, the Fed eventually started buying up mortgage-backed securities and U.S. Treasuries in an attempt to lower long-term interest rates. By doing so, the Fed had effectively lowered the interest rates on all sorts of financial assets in the United States, like savings accounts, CDs, bonds, etc., posing a difficult challenge to investors and savers who desired attractive rates and yields in their investments. As such, all kinds of investors, both individual and institutional, started chasing yields in various investment vehicles. REITs, MLPs, BDCs, junk bonds, and high-yielding ETFs became sought after by investors, despite some of the risks tied to these assets. But investors didn’t stop there: higher yield investments in emerging stock, bond, and currency markets became an attractive area to put money.

Emerging Markets Take a Hit

While the move worked out well initially, over the past couple months the stock, bond, and currency markets in developing economies like India and Indonesia have been taking a beating. As interest rates started to rise in developed economies like the United States and the United Kingdom due to tighter monetary policies, the investors mentioned above started to pull money from the emerging markets to invest it in less risky assets in more established economies. This bit of rotation has caused the value in the stock, bond, and currency markets of these various countries to plummet. While some investors got out in the nick of time, many passive investors could have been behind the curve causing their holdings to drop in value. In the end, the yield chasing might not have been worth all of the risk and speculation for us retail investors.

Leave the Speculation to the Professionals

This strategy of chasing yield across a variety of asset classes as the financial economic landscape changes may work out for active investors, but it is not easy. As the example of the emerging market situation above shows, only those investors who were on top of the ever-changing developments came out as winners. Typically, these are the professional and institutional investors who do it for a living.

For us retail income investors who employ a traditional passive, buy and hold strategy, seeking out high yields in all sorts of asset classes can be a difficult, frustrating, and ultimately losing proposition. Instead, we should stick to that buy and hold strategy of well established dividend paying stocks. Leave the speculation and the active investing to the professionals.

High Yields Can Be Misleading

This all goes to show you that yield isn’t everything when it comes to investments. While it is without a doubt nice to see income from our investments month after month, quarter after quarter, if this income isn’t sustainable, is it worth it? With regards to the emerging markets example above, it was more-or-less the decline of the principal that burned investors. With many high-yield assets, the yields themselves are unsustainable due to a number of factors, like unforeseen quarter-to-quarter fluctuations in earnings. Because of these potential downside risks, investing in high-yield assets might not lead to the gains that one might initially think.

Thursday, November 14, 2013

Top 10 Blue Chip Companies To Own In Right Now

There was big news out of the market for dividend and income investors last week. Two of the bluest blue chips, Microsoft (MSFT) and McDonald's (MCD), both announced big dividend increases.

Microsoft pleased the Street with a 22% increase to its dividend, climbing to $1.12 annually that equates to a current yield of 3.4%. Microsoft also announced another $40 billion share buyback program to replace its existing $40 billion authorization that is set to expire on Sep 30. McDonalds announced a dividend increase of its own, raising its payout by 5% to 81 cents per share, lifting its current yield to 3.3%.

But that got me thinking: Which companies from the S&P 500 are the most shareholder friendly, with the biggest dividend increases in the last 5 years? Here is a list of the top 5 companies from the last 5 years with the biggest dividend increases.

Top 10 Blue Chip Companies To Own In Right Now: 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 Matt Koppenheffer and David Hanson]

    Both Visa (NYSE: V  ) and MasterCard (NYSE: MA  ) have consistently outperformed for investors, based on what many see as a rock-solid simple investing thesis: that these companies have nowhere to go but up as the world switches from cash transactions to credit. But is that thesis just a little too simple to be safe? And can the growth ahead really justify these very pricey multiples? In this video, Fool financial analysts Matt Koppenheffer and David Hanson discuss which of these two hot financial stocks is a more attractive buy today.

  • [By Chris Hill]

    Shares of Visa (NYSE: V  ) rose to an all-time high this week after the company reported stronger-than-expected second-quarter earnings. Earlier in the week, Mastercard (NYSE: MA  ) reported a 12% increase in first-quarter profits, but shares fell on lower-than-expected revenues. In this installment of Motley Fool Money, our analysts discuss Visa, MasterCard, and the future of electronic payments.

  • [By Rich Smith]

    Good news
    The good news, though, is that in many cases at least you can get the same peace of mind from an extended warranty (even if you never get to use it) by simply buying with a credit card. Most products you buy, after all, come with a manufacturer's warranty built right in. And depending on the card you use to buy an item, MasterCard (NYSE: MA  ) or Visa (NYSE: V  ) for example will often automatically double the length of any manufacturer's warranty, adding as much as a year to your warranty period free of charge.

  • [By Jonas Elmerraji]

    You don't have to be an expert technical analyst to figure out what's going on in shares of Visa (V) right now. The preeminent payment network is currently bouncing higher in a well-defined uptrend that's propelled shares since the start of 2013. This week, with shares testing that trendline support level for an eighth time, we're coming up on an ideal time to be a buyer.

    But don't buy shares of Visa anticipating a move higher. Instead, wait for the bounce. Buying off a support bounce makes sense for two big reasons: it's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). And by actually waiting for the bounce to happen first, you're ensuring the Visa can actually still catch a bid along that line.

    Remember, trendlines do eventually fail, and when this one does, you don't want to be holding the bag. We could very well get our bounce today in Visa. If you decide to buy, keep a tight stop in place.

Top 10 Blue Chip 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]

    Over the past seven months, Apple (NASDAQ: AAPL  ) has been engulfed in an endless spiral of negativity. Whereas once the Mac maker could do no wrong, overwhelming investor fear about deceleration and market saturation got the best of Apple, quickly turning it into a shunned stock.

  • [By Jared Cummans]

    After much anticipation surrounding its latest devices, on Tuesday Apple (AAPL) finally detailed the next products in its iPhone pipeline.

    As many had expected, the company announced not one, but two new models. The iPhone 5S is the newest device with a number of upgrades over the older device. One of its most unique new features is a fingerprint scanner built into the home button that gives the user added security and ease of use.

    The second model that was shown was the iPhone 5C. This product will feature a price point of just $99 and will be marketed mainly towards overseas markets that wish to utilize the iPhone technology but not at the hefty price tag that comes with the device in the U.S. This move looks to directly chip away at Android devices, which have been dominating emerging markets for some time now.

    Investors were apparently unimpressed with the new devices, as Apple’s stock was down $11.53, or 2.33%, at Tuesday’s close.

  • [By Dan Caplinger]

    Over the past month, U.S. lawmakers have focused their attention on the tax-avoidance strategies that Apple (NASDAQ: AAPL  ) has put in place to minimize its U.S. corporate income tax bill. With sophisticated corporate structuring designed to take advantage of various U.S. and foreign tax laws, companies can successfully navigate differences in the way nations handle international taxation to minimize their tax exposure.

  • [By Daniel Sparks]

    Apple's (NASDAQ: AAPL  ) event this Tuesday has been confirmed. The company is expected to launch a new version of its full-sized iPad and iPad Mini. Let's look at what we know and, more importantly, what we don't know. Despite the company's hyperactive rumor mill, there are still several intriguing mysteries.

Top Performing Stocks To Watch Right Now: 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 Eric Volkman]

    It's one of the steadiest dividend payers on the market, and it's continuing to fly level. Colgate-Palmolive (NYSE: CL  ) has declared a fresh quarterly common stock dividend, which is to be $0.34 per share, paid on August 15 to shareholders of record as of July 23. That amount matches the firm's previous distribution; this was paid in May. Prior to that, Colgate-Palmolive handed out $0.31 per share.

  • [By Dan Caplinger]

    Investors have always been interested in stocks that pay dividends, but lately, low interest rates on bonds and other fixed-income investments have made solid dividend payers even more valuable. Among the most promising dividend stocks in the market is Colgate-Palmolive (NYSE: CL  ) , and one big reason is that it is one of the few exclusive companies to make the list of Dividend Aristocrats. In order to become a member of this elite group, a company must have raised its dividend payouts to shareholders every single year for at least a quarter-century. Only a few dozen stocks manage to make the cut, and those that do tend to stay there for a long time.

Top 10 Blue Chip Companies To Own In Right Now: 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 Tim McAleenan Jr.]

    Mankiw mentions that investors should get European exposure. Why not just buy McDonald's (MCD) stock? That accounts for 40% of McDonald's sales and operating profit, and gives investors exposure to Europe. McDonald's has 1,400 restaurants in Germany and over 1,200 chains in France. In fact, part of McDonald's explanation for weak earnings numbers lately has been the strength of the dollar against the euro. If you want to bet on a strengthening euro, you could do it on the backs of Big Macs and McNuggets by purchasing shares of a company that would allow a strengthening euro to translate into growing quarterly dividend checks in your pocket.

  • [By Rick Munarriz]

    Starbucks (NASDAQ: SBUX  ) turned heads a few years ago when it began offering smoothies, and McDonald's (NYSE: MCD  ) followed suit in 2010 by adding the frosty fruit beverages to its McCafe line. Burger King Worldwide (NYSE: BKW  ) became the latest player to throw marketing muscle behind its smoothie offerings.

  • [By Rick Munarriz]

    The allure may be obvious. Average ticket prices could head higher as customers trade up from sodas and beers. However, McDonald's (NYSE: MCD  ) also thought that it could boost sales and woo new customers by adding premium beverages. It hasn't exactly worked out well lately. Comps turned negative in October for the first time in a decade, and customer complaints are growing.�

Top 10 Blue Chip Companies To Own In Right Now: 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 Stoyan Bojinov]

    The New York-based information technology juggernaut, IBM Corp. (IBM), made two announcements on Tuesday that resonated well among shareholders.

    First, the company’s board of directors approved an additional $15 billion to be used for stock repurchases. This brings the total amount designated for share buybacks to over $20 billion, seeing as how there were approximately $5.6 billion left at the end of September 2013 from the prior repurchase authorization. According to company officials, IBM expects to request another repurchase authorization at the October board meeting in 2014.

    The second piece of good news on the day was a declared dividend, adding to the company’s flawless quarterly payout record since 1916. IBM announced a regular quarterly cash dividend of $0.95 per share, payable on December 10, 2013 to shareholders on record as of November 8, 2013.

    IBM shares rallied on Tuesday, gaining a solid 2.69% as the trading session drew to a close. The stock is down nearly 5% YTD.

  • [By Holly LaFon]

    Financially, BMC has a history of strong earnings, revenue and cash flow growth. Revenue has increased each of the last 10 years to a record $2 billion in fiscal 2011, and cash flow reached $743 in 2011, compared to $613 in 2010. Earnings have also steadily increased over the last 10 years, reaching a record $456 million in fiscal 2011. Operating margins reached their highest level of the decade in the quarter ended Sept. 30, 2011, at 30.9% and its net margin was at 20.6%, lower than 22.2% in 2010, but higher than the previous years of the decade. The record earnings and stock price drop pushed BMC�� P/E to historically low levels in 2011, though higher than competitors Microsoft (MSFT) and IBM (IBM):

  • [By Trustamind]

    Warren Buffett surprised everyone when he announced that Berkshire (BRK.A) (BRK.B) bought 5.5% shares of IBM (IBM) last November. No matter how bizarre it looks, there was sound logic behind Buffett�� decision, as he explained in his interview with CNN.

  • [By Matt Thalman]

    Consider that the mother of all server companies, IBM (NYSE: IBM  ) just announced quarterly earnings this past week and missed on the top and bottom lines. It was the company's first earnings miss since 2005. The main reason for the miss was weak demand in the IT hardware segment, and analysts think this is a bad sign moving forward for the whole industry, not just for IBM.

Top 10 Blue Chip Companies To Own In Right Now: 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 Fede Zaldua]

    Imperial trades cheaply and pays a great, sustainable and for-ever-growing 4.5% cash dividend yield. The company's 2014 10.4 times P/E multiple represents a 40% discount to what most European consumer staples sell for. Besides, the owner of brands such as Davidoff and Gauloises, trades at a much more conservative level than its direct tobacco peers. Philip Morris International (PM) and British American Tobacco (BTI) sell for 2014 15 and 14.2 times earnings, respectively.

  • [By Sean Williams]

    Russia's move could pose a threat to global cigarette producers such as Philip Morris International (NYSE: PM  ) and British American Tobacco. Although both tobacco producers operate around the globe, a dramatic shift in curbing smoking from the world's third-largest tobacco consumer is bound to sting. In Philip Morris' case, according to Trefis, Russia accounted for approximately 6% of its total revenue last year, and the Eastern Europe, Middle East and Africa region accounted for roughly one-quarter of sales.�

  • [By Bill Maurer]

    Philip Morris (PM):

    Philip Morris saw a surprise short interest drop of more than 20% during the final two weeks of March. More than 2.5 million of the roughly 12.2 million shares short were covered, stopping the recent rise in short interest that you can see in the chart below.

Top 10 Blue Chip Companies To Own In Right Now: 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 Dan Carroll]

    Among blue-chip stocks, oil majors have surged higher. ExxonMobil (NYSE: XOM  ) shares have jumped 1.2% to rank among the top Dow leaders, and fellow firm Chevron (NYSE: CVX  ) has seen its stock rise 1.6%. Chevron got a boost today when a Canadian court turned away a $19 billion Ecuadorian claim against the company that stems from alleged pollution in the 1970s and '80s. While that's one less headache for Chevron, Exxon has run into trouble despite its stock's surge: The company's dealing with a small oil leak in Missouri from the same pipeline that leaked in Arkansas in March. While the spill is minuscule, it's another PR hit for a company that could use some good news.

  • [By Lee Jackson]

    Chevron Corp. (NYSE: CVX), in addition to benefiting from Syria-related higher oil prices, announced last week that it will make large investments in Argentina�� shale oil and gas fields. The UBS price target for the stock is $125. The Thomson/First Call estimate is at $135. Investors are paid a solid 3.3% dividend.

  • [By David Smith]

    The second "Gasland" also touches down briefly in Queensland, Australia, where anti-fracking protests have begun. It then moves to a description of "demonstrations across Europe". Named as specific sites are the U.K., Bulgaria, Romania, France, and Canada. Little did we know that our neighbors to the north had hightailed it across the pond. Poland, where Chevron (NYSE: CVX  ) has undertaken an ambitious shale drilling program is essentially unmentioned.