Monday, December 30, 2013

10 Best Heal Care Stocks For 2014

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) isn't moving much today, up just 0.3% shortly after 8 a.m EDT -- so it looks like yesterday's fall of 60 points has shaken out fears raised by the recent pessimism coming from China, at least for now. And the recent slide in mining shares has tailed off, with the larger sector plays all picking up a few pence this morning.

As usual, the market has provided us with a few nice risers. Here are three from the various indexes that look set to beat the FTSE today.

ASOS
An upbeat quarterly statement has sent ASOS shares up 6% this morning. For the three months ending May 31, total revenue was up 43% on the same period last year, with U.K. retail sales up 39% -- and that's pretty good, as the U.K. is the most established of the firm's markets.

Today's rise takes the share price up more than 150% over the past 12 months, with the shares now on an eye-watering forward P/E of 82 based on full-year forecasts. ASOS is clearly growing strongly, but there's not much slack built into that kind of valuation.

10 Best Heal Care Stocks For 2014: Merrimack Pharmaceuticals Inc (MACK)

Merrimack Pharmaceuticals, Inc., incorporated in 1993, is a biopharmaceutical company discovering, developing and preparing to commercialize medicines paired with companion diagnostics for the treatment of serious diseases, with an initial focus on cancer. The Company�� product candidates include MM-398, MM-121, MM-111, MM-302 and MM-151. As of June 31, 2011, the Company owned approximately 74% interest of Silver Creek.

The Company�� Network biology is an interdisciplinary approach to drug discovery and development that enables the Company to build functional and predictive computational models of biological systems based on quantitative, kinetic, multiplexed biological data. The Company provides its scientists with insights into how the complex molecular interactions that occur within cell signaling pathways, or networks, regulate cell decisions and how dysfunction within these networks leads to disease. The Company applies network biology throughout the research and development process, including for target identification, lead compound design and optimization, diagnostic discovery, in vitro and in vivo predictive development and the design of clinical trial protocols.

MM-398

MM-398 is a stable nanotherapeutic encapsulation, or enclosed sphere carrying an active drug, of the marketed chemotherapy drug irinotecan. MM-398 achieved its primary efficacy endpoints in Phase 2 clinical trials in pancreatic and gastric cancer. In an open label, single arm Phase 2 clinical trial of MM-398 as a monotherapy in 40 metastatic pancreatic cancer patients who had previously failed treatment with gemcitabine, patients treated with MM-398 achieved median overall survival of 22.4 weeks. Additionally, 20% of the patients in this Phase 2 trial survived for more than one year, and the Company observed a disease control rate, meaning patients exhibited stable disease or partial or complete response to treatment, of 47.5% at six weeks.

The Company focuses on initiati! ng a Phase 3 clinical trial of MM-398 for the treatment of patients with metastatic pancreatic cancer who have previously failed treatment with gemcitabine. The trial is expected to enroll approximately 250 patients and is designed to compare the efficacy of MM-398 as a monotherapy against the combination of the chemotherapy drugs fluorouracil, or 5-FU, and leucovorin. There are multiple ongoing Phase 1 and Phase 2 clinical trials of MM-398. In July 2011, the United States Food and Drug Administration (FDA) granted MM-398 orphan drug designation for the treatment of pancreatic cancer.

MM-121

MM-121 is a fully human monoclonal antibody that targets ErbB3, a cell surface receptor, or protein attached to the cell membrane that mediates communication inside and outside the cell, that the Company�� network biology approach identified as a target in a range of cancers. A monoclonal antibody is a type of protein normally produced by cells of the immune system that binds to just one epitope, or chemical structure, on a protein or other structure. MM-121 is designed to inhibit cancer growth directly, restore sensitivity to drugs to which a tumor has become resistant and delay the development of resistance of a tumor to other agents. In collaboration with Sanofi, the Company focuses on testing MM-121 in combination with both chemotherapies and other targeted agents across a range of spectrum of solid tumors, including lung, breast and ovarian cancers. The Company partnered MM-121 with Sanofi after it initiated Phase 1 clinical development of the product candidate.

MM-111

MM-111 is a bispecific antibody designed to target cancer cells that are characterized by overexpression of the ErbB2 cell surface receptor, also referred to as HER2. A bispecific antibody is a type of antibody that is able to bind simultaneously to two distinct proteins or epitopes. The Company�� network biology approach identified that ligand-induced signaling through the complex of ErbB2 ! (HER2) an! d ErbB3 is a promoter of tumor growth and survival than previously appreciated.

MM-302

MM-302 is a nanotherapeutic encapsulation of doxorubicin with attached antibodies that are designed to target MM-302 to cells that over express the ErbB2 (HER2) receptor. The Company is conducting a Phase 1 clinical trial of MM-302 in patients with advanced ErbB2 (HER2) positive breast cancer.

MM-151

MM-151 is an oligoclonal therapeutic consisting of a mixture of three fully human monoclonal antibodies designed to bind to non-overlapping epitopes of the epidermal growth factor receptor (EGFR). EGFR is also known as ErbB1. An oligoclonal therapeutic is a mixture of two or more distinct monoclonal antibodies. The Company has designed MM-151 to block signal amplification that occurs within the ErbB cell signaling network. The Company has submitted an investigational new drug application (IND), to the FDA for MM-151 in July 2011.

Advisors' Opinion:
  • [By Monica Gerson]

    Merrimack Pharmaceuticals (NASDAQ: MACK) dipped 15.38% to $2.86 after the company reported that Phase 2 study Of MM-121 missed primary endpoint.

    IAC/InterActiveCorp (NASDAQ: IACI) shares fell 14.51% to $49.50 in the pre-market trading after the company reported downbeat Q3 revenue.

  • [By Keith Speights]

    Not so merry
    Merrimack Pharmaceuticals (NASDAQ: MACK  ) shareholders have had reason to party since early May, with the stock surging more than 60%. The merriment came to a stop this week, though, as shares tanked by 27%.

  • [By Roberto Pedone]

    One under-$10 biopharmaceuticals player that's just starting to trigger a breakout trade is Merrimack Pharmaceuticals (MACK), which focuses on discovering, developing and preparing to commercialize medicines paired with companion diagnostics for the treatment of serious diseases, with an initial focus on cancer. This stock has been hit hard by the bears so far in 2013, with shares off by 38%.

    If you take a look at the chart for Merrimack Pharmaceuticals, you'll notice that this stock has been downtrending badly for the last two months, with shares plunging from its high of 7.09 to its recent low of $3.26 a share. During that move, shares of MACK have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of MACK have just formed a double bottom chart pattern at $3.26 to $3.32 a share and it's now starting to break out above some near-term overhead resistance at $3.64 a share. This move could be signaling a trend change for MACK as the stock starts to move higher off oversold conditions.

    Traders should now look for long-biased trades in MACK if it manages to break out above some near-term overhead resistance at $3.64 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 1.87 million shares. If that breakout triggers soon, then MACK will set up to re-test or possibly take out its next major overhead resistance level at its 50-day moving average of $4.75 a share. Any high-volume move above that level and above more resistance at $5.06 will then give MACK a chance to tag its 200-day moving average at $5.71 a share.

    Traders can look to buy MACK off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $3.32 or at $3.26 a share. One can also buy MACK off strength once it clears $3.64 a share with volume and then simply use a stop tha

  • [By Eric Volkman]

    Merrimack Pharmaceuticals (NASDAQ: MACK  ) is gearing up for a double dose of fund-raising. The company announced that it will concurrently float both a common stock and a convertible notes issue in a public offering. In the former, Merrimack will offer $50 million worth of shares, while the latter will take the form of $75 million in senior notes maturing in 2020. Additionally, the company expects that it will grant its underwriters a 30-day purchase option for up to an additional $7.5 million worth of common shares and $11.25 million of the convertible notes.

10 Best Heal Care Stocks For 2014: Mirasol Resources Ltd.(MRZ.V)

Mirasol Resources Ltd., an exploration stage company, engages in the acquisition, exploration, and development of precious metal properties primarily in Argentina and Chile. The company focuses on gold-silver prospects. Its principal property includes the Joaquin property located in central Santa Cruz province. The company was founded in 2003 and is based in Vancouver, Canada.

Top 5 High Tech Stocks To Own Right Now: MGP Ingredients Inc.(MGPI)

MGP Ingredients, Inc. produces ingredients and distillery products in the United States. It processes wheat flour and corn into various products through an integrated production process. The company operates in three business segments: Ingredient Solutions, Distillery Products, and Other. The Ingredient Solutions segment products consist of specialty proteins, specialty starches, vital wheat gluten, commodity wheat starch, and mill by-products. The Distillery Products segment offers food grade alcohol; fuel grade alcohol, commonly known as ethanol; and distiller?s feed and carbon dioxide, which are co-products of the company?s distillery operations. The Other segment products comprise resins, and plant-based polymers and composites. MGP Ingredients, Inc. sells its products directly or through distributors to the manufacturers and processors of finished goods. The company was founded in 1941 and is headquartered in Atchison, Kansas.

10 Best Heal Care Stocks For 2014: Kilo Goldmines Ltd (KGL.V)

Kilo Goldmines Ltd., a development stage company, engages in the exploration and development of gold properties in the Democratic Republic of Congo. The company holds interests in 3 joint ventures in a land package totaling approximately 7,000 square kilometers located in the Archaean Kabalian greenstone geological formation primarily in the Orientale province. It also explores for iron ores. The company is headquartered in Toronto, Canada.

10 Best Heal Care Stocks For 2014: Lear Corp (LEA)

Lear Corporation, incorporated in 1987, is a tier 1 supplier to the global automotive industry. The Company supplies its products to automotive manufacturers with automotive seat systems and related components, as well as electrical distribution systems and related components. The Company has two segments: seating and electrical power management systems (EPMS). The seating segment includes seat systems and related components, such as seat frames, recliner mechanisms, seat tracks, seat trim covers, headrests and seat foam. The EPMS segment includes electrical distribution systems for traditional powertrain vehicles, as well as for hybrid and electric vehicles. As of December 31, 2011, it had 20 joint ventures located throughout Asia, as well as five in North America, two in Europe and Africa and one with operations in all three regions.

Seating Segment

The Seating Segment consists of the design, manufacture, assembly and supply of vehicle seating requirements. It produces seat systems for automobiles and light trucks that are assembled and ready for installation. In all cases, seat systems are designed and engineered for specific vehicle models or platforms. It has developed modular seat architectures for both front and rear seats. It produces components for seat assemblies, such as seat frames, recliner mechanisms, seat tracks, seat trim covers, headrests and seat foam.

The Company competes with Johnson Controls, Inc., Faurecia S.A., Toyota Boshoku Corporation, TS Tech Co., Ltd. and Magna International Inc.

EPMS Segment

The EPMS segment consists of the design, manufacture, assembly and supply of electrical distribution systems and components for traditional powertrain vehicles, as well as for hybrid and electric vehicles. Electrical distribution systems are comprised primarily of wire harness assemblies, terminals and connectors and control modules, including junction boxes and fuse boxes. Wire harness assemblies consist of a collection! of wiring and terminals and connectors that connect all of the various electrical and electronic devices within the vehicle to each other and/or to a power source.

Electrical distribution systems are networks of wiring and associated control devices that route electrical signals and manage electrical power within a vehicle. Wire harness assemblies consist of raw, coiled wire, which is cut to length and terminated. Individual circuits are assembled together on a jig or table, inserted into connectors and wrapped or taped to form wire harness assemblies.

Wireless products send and receive signals using radio frequency technology. The Company�� wireless systems include passive entry systems and dual range/dual function remote keyless entry systems. Passive entry systems allow the vehicle operator to unlock the door without using a physically activating a remote keyless fob. Dual range/dual function remote keyless entry systems allow a single transmitter to perform multiple functions. The lighting control module integrates electronic control logic and diagnostics with the headlamp switch. Entertainment products include radio amplifiers, sound systems, in-vehicle television tuner modules and floor-, seat- or center console-mounted Media Console with a flip-up screen that provides digital video disc (DVD) and video game viewing for back-seat passengers.

The Company competes with Yazaki Corporation, Sumitomo Corporation, Delphi Automotive PLC, Leoni AG and Furukawa Electric Co., Ltd., TE Connectivity, Ltd., Continental AG, Hella, Inc., Robert Bosch LLC, Magna E-Car Systems GmbH & Co OG and Hitachi, Ltd.

Advisors' Opinion:
  • [By Ben Levisohn]

    Cooper Tire & Rubber (CTB) has gained 1% to $24.86 today, but its trading more on whether investors expect its acquisition by Apollo Tyres to be completed. Car-part companies, however, are also exhibiting weakness today. TRW Automotive (TRW) has fallen 0.8% to $77.91, Lear (LEA) has dipped 0.4% to $74.78 and American Axel and Manufacturing (AXL) is off 0.5% to $18.99.

10 Best Heal Care Stocks For 2014: Hana Mining Ltd (HMG.V)

Hana Mining Ltd., a junior mineral exploration company, engages in the acquisition, exploration, and development of precious, base metal, and other mineral exploration projects in the Republic of Botswana. It principally holds a 100% interest in the 5 prospecting licenses in the Ghanzi copper-silver project covering 2,169 square kilometers in northwestern Botswana. The company was formerly known as Golden Patriot Mining Inc. and changed its name to Hana Mining Ltd. in March 2007. Hana Mining Ltd. is based in Vancouver, Canada.

10 Best Heal Care Stocks For 2014: Star Pharmaceutical Limited (X64.SI)

STAR Pharmaceutical Limited engages in the manufacture and sale of western and traditional Chinese medicine-formulated prescription drugs. The company primarily offers antibiotics, cerebrovascular drugs, cardiovascular drugs, and other specialized drugs in various dosages and administration forms ranging from powder injections, lyophilized powder injections, and liquid injections to tablets, capsules, and granules. It sells its products through a network of approximately 398 distributors to hospitals, clinics, and pharmacies in the People�s Republic of China. The company was founded in 1993 and is based in Haikou City, the People�s Republic of China. STAR Pharmaceutical Limited is a subsidiary of DB NOMINEES (S) PTE LTD.

10 Best Heal Care Stocks For 2014: MetroPCS Communications Inc.(PCS)

MetroPCS Communications, Inc., a wireless telecommunications carrier, together with its subsidiaries, provides wireless broadband mobile services in the United States. Its services include voice services, such as local, domestic long distance, and international call services; and data services, including domestic and international text messaging, multimedia messaging, mobile Internet access, mobile instant messaging, location based services, social networking services, push e-mail, and multimedia streaming and downloads, as well as services provided through the binary runtime environment for wireless (BREW), Blackberry, Windows, and the Android platforms, including ringtones, ring back tones, games, and content applications. The company also offers custom calling features consisting of caller ID, call waiting, three-way calling, and voicemail services. In addition, it sells mobile handsets. The company offers its products and services under the MetroPCS brand name, directl y through the company-operated retail stores and indirectly through independent retail outlets, as well as through Internet. As of December 31, 2010, it served approximately 8.1 million subscribers, as well as operated 159 retail stores primarily in the metropolitan areas of Atlanta, Boston, Dallas/Fort Worth, Detroit, Las Vegas, Los Angeles, Miami, New York, Orlando/Jacksonville, Philadelphia, Sacramento, San Francisco, and Tampa/Sarasota. The company is headquartered in Richardson, Texas.

10 Best Heal Care Stocks For 2014: Plantronics Inc.(PLT)

Plantronics, Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of lightweight communications headsets, telephone headset systems, and accessories for the business and consumer markets under the Plantronics name worldwide. It also offers specialty telephone products, such as telephones for the hearing impaired and other related products for people with special communication needs under the Clarity brand name. The company?s products are designed for specific markets and applications, such as offices; contact centers; mobile devices comprising mobile phones and smart phones; computer and gaming; and residential applications, as well as for other specialty applications. It sells its products through a network of distributors, retailers, wireless carriers, original equipment manufacturers, and telephony service providers. The company was founded in 1961 and is headquartered in Santa Cruz, California.

Advisors' Opinion:
  • [By Sean Williams]

    Can you hear me now?
    Unlike YRC, which I consider to be in awful shape, audio communication solutions maker Plantronics (NYSE: PLT  ) is merely a sell in my book based on its recent share price appreciation.

10 Best Heal Care Stocks For 2014: Questcor Pharmaceuticals Inc.(QCOR)

Questcor Pharmaceuticals, Inc., a biopharmaceutical company, provides prescription drugs for the treatment of auto-immune diseases. The company?s primary product is H.P. Acthar Gel (repository corticotropin injection), an injectable drug for the treatment of acute exacerbations of multiple sclerosis; infantile spasms in infants and children under two years of age; nephrotic syndrome; and Lupus. Questcor Pharmaceuticals, Inc. was founded in 1990 and is headquartered in Anaheim, California.

Advisors' Opinion:
  • [By Keith Speights]

    Questcor Pharmaceuticals (NASDAQ: QCOR  ) reported first-quarter results after the market closed on Tuesday -- and they didn't look great. Shares fell 3% in after-hours trading, but were things really as bad for Questcor as they might seem? Let's take a look.

  • [By Briton Ryle]

    Although Questcor Pharmaceuticals (QCOR) is currently a one-drug biotech, the firm is expanding its studies of HP Achtar Gel, to grow its market share in lupus and Lou Gehrig's disease. And Acthar Gel is likely to be approved for other conditions as well.

Sunday, December 29, 2013

Asia Stocks Advance on Outlook for Federal Stumulus

Asian stocks rose, with the regional benchmark index extending its advance from a five-month high, amid speculation the Federal Reserve will delay stimulus cuts.

Canon Inc., the world's biggest camera maker, gained 1.1 percent as a weaker yen boosted the earnings outlook for Japanese exporters. Naver Corp. advanced 5 percent to a record in Seoul after KB Investment & Securities Co. raised its price target for the Internet company. Qantas Airways Ltd. slipped 4.6 percent, extending losses for a second day, after Australia's largest carrier said last week it expects the lowest yields in more than a decade for passenger flights.

The MSCI Asia Pacific Index added 0.2 percent to 143.76 as of 12:10 p.m. in Tokyo, with about five shares rising for every three that fell. The gauge climbed 1.8 percent last week after China's economic growth accelerated and as investors shifted their focus from the resolution of the U.S. fiscal showdown to the timeline for the Fed reducing bond buying.

"The market will continue to rally based on improving economic fundamentals and a potential delay in tapering of the Federal Reserve's stimulus," Angus Gluskie, managing director at White Funds Management Ltd. in Sydney, where he helps oversee about $550 million, said by telephone. "While the U.S. government still needs to do more work on the debt issue and their budget, we're going into 2014 with the likelihood of synchronized recovery in Europe, Asia and the U.S."

Japan's Topix index advanced 0.4 percent. The country's exports rose 11.5 percent in September from a year earlier, according to a government report today. That was less than a median 15.6 percent growth estimate in a Bloomberg survey of economists.

Japan Economy

Bank of Japan Governor Haruhiko Kuroda said today Japan's economy will sustain a moderate recovery. Policy makers will maintain accommodative monetary policy until inflation reaches 2 percent, Kuroda said at the central bank's branch manager meeting in Tokyo.

New Zealand's NZX 50 Index climbed 0.9 percent, while Australia's S&P/ASX 200 Index (AS51) rose 0.6. Singapore's Straits Times Index added 0.1 percent. Hong Kong's Hang Seng Index and China's Shanghai Composite Index both advanced 0.6 percent. South Korea's Kospi index fell 0.1 percent, while Taiwan's Taiex index lost 0.3 percent.

The MSCI Asia Pacific Index climbed 3.6 percent this month through Oct. 18 as the U.S. Congress voted to end the government shutdown and raise the debt ceiling. The gauge traded at 13.8 times estimated earnings, compared with 15.8 for the Standard & Poor's 500 Index and 14.7 for the Stoxx Europe 600 Index.

S&P 500 futures added 0.1 percent today. The U.S. equity gauge gained 0.7 percent to a record on Oct. 18 as results from Google Inc. and General Electric Co. topped estimates.

U.S. Jobs

Payrolls data due tomorrow in the U.S. will probably show employers added 180,000 workers in September, the most since April, after a 169,000 gain in August, according to the median estimate of 93 economists surveyed by Bloomberg. The Labor Department report, originally due Oct. 4, was delayed by the Oct. 1-Oct. 17 partial government shutdown.

Hot Casino Stocks To Own Right Now

The Fed won't taper its bond-purchasing program until March next year because the shutdown probably slowed fourth-quarter U.S. growth and also interrupted the flow of data, according to economists in a Bloomberg survey. The monthly pace of asset buying will be pared to $70 billion from $85 billion at the Fed's March 18-19 meeting, the median of 40 estimates shows.

Friday, December 27, 2013

Stocks to Watch: WellCare, First Solar, Ellie Mae

Among the companies with shares expected to actively trade in Friday’s session are WellCare Health Plans Inc.(WCG), First Solar Inc.(FSLR) and Ellie Mae Inc.(ELLI)

Managed-care services company WellCare said it will replace CEO Alec Cunningham and has named Chairman David Gallitano as interim chief executive as it conducts a search for a new leader. Shares slid 5.3% to $63.14 premarket even as WellCare reported stronger-than-expected third-quarter results.

Shares of solar-panel maker First Solar rose as investors cheered a jump in third-quarter profit and sales that easily exceeded Wall Street’s expectations. Profit for the period more than doubled, bolstered by a sharp top-line jump as a result of revenue from a California solar plant and project sales in Canada. The stock rose 7.3% to $53.97 in premarket trading as the company also raised its full-year earnings outlook.

Ellie Mae’s third-quarter earnings fell 51%, and the maker of mortgage-origination software said it had agreed to acquire customer relations and marketing company Mortgage CEO for an undisclosed cash price. Shares of Ellie Mae were down 18% at $23.60 in premarket trading as the company drastically slashed its year outlook and issued downbeat guidance for the current quarter.

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

CBOE Holdings Inc.'s(CBOE) third-quarter revenue increased as the largest U.S. options exchange by trading volume was aided by a rise in transaction fees and increased volume. Earnings just topped estimates.

Hot Casino Companies To Own For 2014

Church & Dwight Co.'s(CHD) third-quarter earnings rose 15% as the maker of Arm & Hammer products and Trojan condoms boosted its sales thanks to last year’s acquisition of the Avid gummy vitamin business. But the top line missed views, and the company gave a cautious earnings forecast for the current quarter.

Standard & Poor’s Ratings Services boosted its rating on railroad company CSX Corp.(CSX) further into investment-grade territory, touting increased cash-flow generation and debt reduction even as freight volume has been challenged.

Genesee & Wyoming Inc.(GWR) swung to a third-quarter profit as the railroad operator benefited from last year’s acquisition of RailAmerica Inc., which sent revenue soaring higher. Results slightly missed expectations.

Green Dot Corp.(GDOT) posted better-than-expected third-quarter results and lifted the lower end of its full-year guidance, touting more customers receiving recurring direct deposits. The company’s chief executive also said it was well positioned to return to double-digit revenue growth as Green Dot looks towards 2014.

Madison Square Garden Co.'s(MSG) fiscal first-quarter profit increased 16% as sports and media segment revenue improved for the entertainment company. Results beat expectations.

Carpet-and-flooring company Mohawk Industries Inc.'s(MHK) third-quarter earnings soared 69% and revenue climbed thanks to recent acquisitions.

Gold producer Newmont Mining Corp.(NEM) posted an 11% increase in third-quarter profit while a reduction in costs and expenses masked a decline in revenue.

NextEra Energy Inc.'s(NEE) third-quarter earnings increased 68% as the company reported profit gains at both its utility and competitive energy segments. The results were mixed as the bottom line topped views and revenue fell short.

Public Storage's(PSA) third-quarter profit rose 7.7% on the strength of higher occupancy and rents. Meanwhile, the real estate investment trust’s funds from operations, an important metric in the sector, grew during the period.

Regis Corp.(RGS), the parent of haircut chains such as Supercuts, named Gap Inc.(GPS) (GPS) executive Jim Lain as chief operating officer, effective Nov. 11.

Wells Fargo(WFC) & Co. settled with the Federal Housing Finance Agency for allegedly misleading disclosures on mortgage securities the bank sold to Fannie Mae(FNMA) (FNMA) and Freddie Mac(FMCC) (FMCC), according to people familiar with the matter.

Sunday, December 22, 2013

5 Stocks Poised for Breakouts

DELAFIELD, Wis. (Stockpickr) -- Trading stocks that trigger major breakouts can lead to massive profits. Once a stock trends to a new high, or takes out a prior overhead resistance point, then it's free to find new buyers and momentum players that can ultimately push the stock significantly higher.

One example of a successful breakout trade that I flagged recently was Chinese mobile application player Sky-mobi (MBOI), which I featured in Sept. 27's "5 Stocks Poised for Breakouts" at around $3.74 a share. I mentioned in that piece that shares of MOBI recently formed a triple-bottom chart pattern at $3.31, $3.28 and $3.40 a share. After forming that bottom, shares of MOBI started to uptrend and challenge its 50-day moving average of $3.76 a share. That move was pushing MOBI within range of triggering a breakout trade above some near-term overhead resistance levels at $3.71 to $3.83 a share.

Guess what happened? Shares of MOBI triggered that breakout on Wednesday with monster upside volume. This stock soared to its intraday high on Wednesday of $4.59 a share, which represents a gain of just over 20% for anyone who played the breakout. Shares of MOBI still look poised for higher prices, and traders should now look to play the next breakout trade which will trigger if resistance at $4.59 to $4.96 a share gets taken out with volume.

Breakout candidates are something that I tweet about on a daily basis. I frequently tweet out high-probability setups, breakout plays and stocks that are acting technically bullish. These are the stocks that often go on to make monster moves to the upside. What's great about breakout trading is that you focus on trend, price and volume. You don't have to concern yourself with anything else. The charts do all the talking.

Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels, and hold above those breakout prices, then it can easily trend significantly higher.

With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.

CME Group

One financial market player that's starting to move within range of triggering a major breakout trade is CME Group (CME), which offers products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. This stock has been in play with the bulls so far in 2013, with shares up sharply by 48%.

If you take a look at the chart for CME Group, you'll notice that this stock recently formed a triple bottom chart pattern at $70.42, to $69.88 and $70.28 a share. Following that bottom, shares of CME have now started to trend back above its 50-day moving average of $72.70 a share. That move is quickly pushing CME within range of triggering a major breakout trade.

Traders should now look for long-biased trades in CME if it manages to break out above some near-term overhead resistance levels at $75.50 to $77.65 a share and then once it clears its 52-week high at $79.45 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.84 million shares. If that breakout hits soon, then CME will set up to enter new 52-week-high territory above $79.45, which is bullish technical price action. Some possible upside targets off that breakout are $90 to $100 a share.

Traders can look to buy CME off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $72.70 a share or just below more support at $70 a share. One can also buy CME off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

CBOE Holdings

Another stock that looks ready to trigger a near-term trade is CBOE Holdings (CBOE), which is engaged in the trading of options on individual equities, market indexes and exchange-traded funds. This stock has been on fire so far in 2013, with shares up sharply by 56%.

If you take a look at the chart for CBOE Holdings, you'll notice that this stock recently formed a triple bottom chart pattern at $44.44, $44.58 and $44.86 a share. Following that bottom, shares of CBOE have started to uptrend modestly and move within range of taking out some key near-term overhead resistance levels.

Traders should now look for long-biased trades in CBOE if it manages to break out above some near-term overhead resistance at $46.98 a share and then once it takes out its 50-day moving average of $46.98 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 612,798 shares. If that breakout hits soon, then CBOE will set up to re-test or possibly take out its next major overhead resistance levels at $49.59 a share to its 52-week high at $51.12 a share. Any high-volume move above $51.12 will then give CBOE a chance to tag $60 to $65 a share.

Traders can look to buy CBOE off any weakness to anticipate that breakout and simply use a stop that sits right below $44 a share. One could also buy CBOE off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Aruba Networks

One network equipment player that's quickly moving within range of triggering a major breakout trade is Aruba Networks (ARUN), which provides enterprise mobility solutions. This stock is off to a weak start in 2013, with shares off by 11%.

If you take a look at the chart for Aruba Networks, you'll notice that this stock just formed a major bottom chart pattern, after buyers stepped in to support the price over the last month and change from $17 to $16.25 a share. Following that bottom, shares of ARUN have now started to rebound higher and move back above its 50-day moving average of $17.73 a share. That move is quickly pushing shares of ARUN within range of triggering a major breakout trade.

Traders should now look for long-biased trades in ARUN if it manages to break out above some near-term overhead resistance levels at $19.16 a share to its 200-day moving average at $19.63 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 2.12 million shares. If that breakout triggers soon, then ARUN will set up to re-fill some of its previous gap down zone from May that started near $22 a share. Any high-volume move above $22 will then give ARUN a chance to hit $24 to $25 a share.

Traders can look to buy ARUN off any weakness to anticipate that breakout and simply use a stop that sits right below support at $17 a share or below $16.25 a share if you want to give it more room. One can also buy ARUN off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Neurocrine Biosciences

Another stock that's starting to trend within range of triggering a major breakout trade is Neurocrine Biosciences (NBIX), which discovers, develops and commercializes drugs for the treatment of neurological and endocrine-related diseases and disorders. This stock has been a hot name with bulls so far in 2013, with shares up 57%.

If you look at the chart for Neurocrine Biosciences, you'll notice that this stock recently gapped down sharply from $16.74 to below $11.50 a share with heavy downside volume flows. Following that gap down, shares of NBIX went on to continue its trend lower and the stock hit a new low of $10.42 a share. Shares of NBIX have started to rebound off that $10.42 low and it's now moving within range of triggering a major breakout trade.

Traders should now look for long-biased trades in NBIX if it manages to break out above some near-term overhead resistance levels at its 200-day moving average of $11.92 a share and above its gap down day high of $12.17 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 894,145 shares. If that breakout triggers soon, then NBIX will set up to re-fill some of its previous gap down zone from September that started at $16.74 a share. Some possible upside targets for NBIX if it gets into that gap with volume are $14 to $15 a share.

Traders can look to buy NBIX off any weakness to anticipate that breakout and simply use a stop that sits right below support at $11 a share, or below that recent low of $10.42 a share. One can also buy NBIX off strength once it takes out that breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Auxilium Pharmaceuticals

My final breakout trading prospect is specialty biopharmaceutical player Auxilium Pharmaceuticals (AUXL), which develops and markets products to urologists, endocrinologists, orthopedists and select primary care physicians and plastic surgeons who focus on the hand, and rheumatologists. This stock is off to a slow start in 2013, with shares up just 8.3% during the last six months.

If you look at the chart for Auxilium Pharmaceuticals, you'll notice that this stock recently formed a triple bottom chart pattern at $17.36, $17.74 and $17.57 a share. Following that bottom, shares of AUXL have now started to trend back above its 50-day moving average of $18.29 a share. That move is quickly pushing shares of AUXL within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in AUXL if it manages to break out above some near-term overhead resistance levels at $19 to $19.08 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 834,717 shares. If that breakout triggers soon, then AUXL will set up to re-test or possibly take out its next major overhead resistance level at $20.95 a share. Any high-volume move above that level will then give AUXL a chance to re-test its 52-week high at $25.54 a share.

Traders can look to buy AUXL off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $17.36 to $16.77 a share. One could also buy AUXL off strength once it clears those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point.

To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Saturday, December 21, 2013

These Stocks Are Leading the Dow's Rise Today

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up 0.34% as of 1:20 p.m. EDT, while the S&P 500 (SNPINDEX: ^GSPC  ) is up 0.48%, thanks to a pair of encouraging economic reports:

Report

Period

Result

Previous

Consumer Sentiment

May

83.7

76.4

Leading Indicators

April

0.6%

(0.1%)

The big surprise today was consumer sentiment, which rose by 7.3 points to 83.7 where analysts had expected a slight rise to 77.5. Consumer sentiment is likely gaining on the steadily rising market and falling gasoline prices.

The second release today was the Conference Board's Leading Economic Index, which rose by 0.6% to 95, whereas analysts had expected a 0.3% rise. The index is made up of 10 indicators and is designed to signal peaks and troughs in the business cycle.

The biggest factor moving the index is the large rise in building permits to a seasonally adjusted 1.02 million from 890,000 last month. Further, the spread between 10-year Treasury bond yields and the federal funds rate fell to 1.61. The continued rise in the leading economic indicators bodes well for the economy. Investors should remember, however, that the economy and the stock market are two different things, and the market can get ahead of the economy.

Today's Dow leader
Today's Dow leader is Boeing (NYSE: BA  ) , up 2.3%. Boeing's stock took a small hit earlier this year when the FAA grounded its 787 Dreamliner due to problems with its lithium batteries. The company announced on Tuesday that it had resumed deliveries of the plane. Boeing's stock has been on a tear, up 31% since it first became apparent three months ago that the company would be able to work through this problem. Even after its recent run-up, some investors still think Boeing stock is attractive. Fool contributor Daniel Miller recently detailed two reasons to buy Boeing stock now.

Second for the Dow today is JPMorgan Chase (NYSE: JPM  ) , up 1.8%. Bank stocks have been on a tear this week after hedge fund manager David Tepper went on CNBC and said he was bullish on Citigroup, JPMorgan, and the economy in general. Next Tuesday is a big day for the bank. The company is holding its annual meeting, where investors will vote on a proposal to separate the CEO and chairman roles, both of which are now held by Jamie Dimon. Some investors are worried that Dimon will leave the bank if the measure is passed. Analysts and pundits have been raising concern over the possibility, with some saying the stock will drop 10% if he leaves. Dimon is a great banking CEO, but if he leaves and the stock drops, it would be a wonderful opportunity to get the bank at a cheap price.

With big finance firms still trading at deep discounts to their historical norms, investors everywhere are wondering if this is the new normal or if finance stocks are a screaming buy today. The answer depends on the company, so to help you figure out whether JPMorgan is a buy today, check out The Motley Fool's premium research report on the company. Click here now for instant access!

Friday, December 20, 2013

Top 10 Cheap Stocks For 2014

Two companies that don't seem to be natural collaborators are teaming up for a new energy-saving initiative. KB Home (NYSE: KBH  ) and Ford (NYSE: F  ) have announced that principles and technologies from the latter's MyEnergi Lifestyle push are to be featured in the construction specialist's new ZeroHouse 2.0 model home in Southern California.

MyEnergy Lifestyle is a set of products and tricks that helps lower energy consumption and thus costs. Ford provides the example of a "smart" refrigerator that carries out intensive tasks such as ice making only at night, when prices for energy are relatively cheaper.

ZeroHouse 2.0 -- highlighting a design that, in line with the MyEnergy Lifestyle push, is aimed at lower consumption -- will feature such innovations as well as a built-in electric car-charging station that does its work during cheaper energy cost periods.

Top 10 Cheap Stocks For 2014: Sirius XM Radio Inc.(SIRI)

Sirius XM Radio Inc. provides satellite radio services in the United States and Canada. It broadcasts a programming lineup of approximately 135 channels of commercial-free music, sports, news and information, talk and entertainment, traffic, and weather on subscription fee basis through two satellite radio systems in the United States; and holds an interest in the satellite radio services offered in Canada. The company also simulcasts music and selected non-music channels over the Internet; and offers applications to allow consumers to access its Internet services on mobile devices. As of December 31, 2010, it had 20,190,964 subscribers. In addition, the company designs, establishes specifications, sources or specifies parts and components, and manages various aspects of the logistics and production of satellite radios; licenses its technology to various electronics manufacturers to develop, manufacture, and distribute radios under various brands; and imports radios distri buted through its Websites. The company?s satellite radios are primarily distributed through automakers, retailers, and its Websites. Further, it provides music services for commercial establishments; a satellite television service to offer music channels as part of certain programming packages on the DISH Network satellite television service; music and comedy channels to mobile phone users through mobile phone carriers; Backseat TV, a service offering television content designed primarily for children in the backseat of vehicles; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedules and scores, and movie listings; and real-time traffic and weather services. The company was formerly known as Sirius Satellite Radio Inc. and changed its name to Sirius XM Radio Inc. in August 2008. Sirius XM Radio Inc. was founded in 1990 and is headquartered in New York, New York.

Advisors' Opinion:
  • [By Rick Munarriz]

    Investors continue to warm up to Sirius XM Radio (NASDAQ: SIRI  ) , and that's bad news for those holding the 380.3 million shares sold short.

Top 10 Cheap Stocks For 2014: Lattice Semiconductor Corporation(LSCC)

Lattice Semiconductor Corporation designs, develops, manufactures, and markets programmable logic products and related software. The company offers field programmable gate array (FPGA) products, including LatticeECP family for deployment in wireless infrastructure and wireline access equipment, as well as in video and imaging applications; and LatticeXP for the security, surveillance, and display markets. It also provides programmable logic device (PLD) products comprising various versions of ispMACH4000 in-system programmable complex programmable logic device family; MachXO family that is designed for a range of low density applications; platform manager, power manager, and ispClock programmable mixed signal devices; and software development tools and intellectual property cores. The company sells its products directly to end customers through a network of independent manufacturers? representatives and indirectly through a network of independent sell-in and sell-through distributors. It primarily serves original equipment manufacturers in the communications, computing, consumer, industrial, military, automotive, and medical end markets. The company was founded in 1983 and is headquartered in Hillsboro, Oregon.

Advisors' Opinion:
  • [By Lee Jackson]

    Lattice Semiconductor Corp. (NASDAQ: LSCC) is a top chip stock to buy at Jefferies. The company announced last month three new complete reference designs that will make it easier for electronic OEMs to deliver media-rich experiences to their end users by taking advantage of low-cost, industry-standard MIPI (Mobile Industry Processor Interface) camera, application processor and display technologies. The Jefferies price objective for the stock is $6.50, and the consensus is also at $6.50. Lattice closed yesterday at $4.63.

Top Safest Stocks To Watch Right Now: The Travelers Companies Inc.(TRV)

The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. The company operates in three segments: Business Insurance; Financial, Professional, and International Insurance; and Personal Insurance. The Business Insurance segment offers property and casualty products and services, such as commercial multi-peril, property, general liability, commercial auto, and workers? compensation insurance. It operates in six groups: Select Accounts, which serves small businesses; Commercial Accounts that serves mid-sized businesses; National Accounts, which serves large companies; Industry-Focused Underwriting that serves targeted industries; Target Risk Underwriting, which serves commercial businesses requiring specialized product underwriting, claims handling, and risk management services; and Special ized Distribution that offers products to customers through licensed wholesale, general, and program agents. The Financial, Professional, and International Insurance segment provides surety and financial liability coverage, which uses a credit-based underwriting process; and property and casualty products primarily in the United States., the United Kingdom, Ireland, and Canada. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. It distributes its products through independent agents, sponsoring organizations, joint marketing arrangements with other insurers, and direct marketing. The company was founded in 1853 and is based in New York, New York.

Advisors' Opinion:
  • [By Holly LaFon]

    Company Dell Inc. (DELL) Chesapeake Energy (CHK) DirecTV (DTV) Loews (L) Walt Disney (DIS) Aon Plc (AON) The Travelers Companies (TRV) Level 3 Communications (LVLT) FedEx (FDX) Bank of New York Mellon (BK)
    Learn more about Mason and his views on the present economy in his second-quarter letter here. See his portfolio here.

  • [By Matt Thalman]

    This past week, in contrast, IBM lost 3.74%. That's still a large decline, but it represents only about 57 points of the Dow's 270-point loss. This time around, AT&T (NYSE: T  ) was the index's largest decliner, losing 4.47% this past week, but the stock represents only about 1.4% of the Dow, so it didn't play a major role in tanking the index. The next largest decliner, at 4.13%, was Travelers (NYSE: TRV  ) -- which, besides AT&T, was the only other component to lose more than 4% of its value. But, while Travelers' weight is substantially larger than AT&T, it still makes up only 4.1% of the index, ranking it as the 10th heaviest component.

  • [By Dan Carroll]

    The biggest winner so far today, has been Travelers (NYSE: TRV  ) , which has jumped 2.1% despite a potentially bumpy hurricane season to come that could weigh on the company's performance. While warnings of hurricanes to come could push some to purchase property and risk insurance in the days ahead, forecasts that up to five powerful hurricanes could form in the Atlantic Ocean this year may foretell a costly season for this insurer.

Top 10 Cheap Stocks For 2014: International Business Machines Corporation(IBM)

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

Advisors' Opinion:
  • [By Rich Smith]

    Xerox stock is cheap
    When you stack up Xerox stock against two of its rivals in the international "business process outsourcing" industry -- Accenture (NYSE: ACN  ) and IBM (NYSE: IBM  ) -- it's clear that Xerox is one of the cheapest options out there. Its 9.7 price-to-earnings ratio falls 32% below the P/E of IBM. It sells for a whopping 45% discount to the price of a share of Accenture.

  • [By Eric Parnell]

    After taking these risks into consideration, maintaining an allocation to stocks remains worthwhile in such an environment. Given the volatility that often accompanies the turbulent May to October period, it may offer some particularly good trading opportunities as either broader markets or specific securities experience steep corrections followed by swift rallies. But risks must be monitored closely and holdings should be viewed with a potentially shorter time horizon depending on how events unfold in the coming months. Emphasizing stocks that exhibit quality, low volatility, value and current income that are also not technically overbought provides an additional way to control risk in the current environment. This includes allocations such as the Vanguard Dividend Appreciation ETF (VIG) and high quality individual names such as Exxon Mobil (XOM), International Business Machines (IBM), McDonald's (MCD), General Electric (GE) and Oracle (ORCL). It should be noted that IBM, General Electric and Oracle were all positions that were scooped up following recent sharp pullbacks.

Top 10 Cheap Stocks For 2014: Whole Foods Market Inc.(WFM)

Whole Foods Market, Inc. engages in the ownership and operation of natural and organic food supermarkets. The company offers produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, coffee and tea, nutritional supplements, and vitamins. It also provides specialty products, such as beer, wine, and cheese; body care and educational products, such as books; and floral, pet, and household products. As of February 9, 2011, the company operated 302 stores in the United States, Canada, and the United Kingdom. Whole Foods Market, Inc. was founded in 1978 and is headquartered in Austin, Texas.

Advisors' Opinion:
  • [By Rick Aristotle Munarriz]

    AP With the studio behind this weekend's biggest opening reporting quarterly results and an update from the company behind the world's best-selling video game franchise, there will be plenty of news breaking in the coming days. Let's go over some of the items that will help shape the week ahead on Wall Street. 1. Organic Growth: Whole Foods Market (WFM) is the undisputed champ among grocers specializing in whole and organic foods. No, a trip to Whole Foods Market isn't exactly cheap, but customers haven't been flinching at the register. The high-end supermarket chain has been posting positive comps for a couple of years now. Whole Foods Market reports quarterly results on Tuesday, and the market's ready for more growth. Analysts see the retailer earning $0.73 a share, well ahead of the $0.64 a share it rang up a year earlier. The retailer hasn't made any substantial acquisitions lately, so I guess you can call this organic growth in more ways than one. 2. Activision Blizzard Fires Again: The country's largest video game developer has been putting out new "Call of Duty" games every November for years, so it wasn't a surprise when Activision Blizzard (ATVI) announced that its next installment will hit gamers on Nov. 5. However, the leading publisher isn't going to settle for another "Modern Warfare" or "Black Ops" entry this year. "Call of Duty: Ghosts" will be the name of the new combat simulator. Diehard gamers hungry for a glimpse will get a preview on May 21 when the new Xbox is unveiled. Investors hungry for more gaming news will get Activision Blizzard's quarterly report on Wednesday. Analysts see improving profitability and revenue for the quarter, but those same analysts see revenue and earnings declining for all of 2013. Call this quarter a battle that Activision Blizzard is winning -- but it's going to have to do better to win the war. 3. Stark Was the Spark: Everyone knew that "Iron Man 3" would kick off the summer box office season with a punch

  • [By Joe Tenebruso and Richard Engdahl]

    Is Whole Foods (NASDAQ: WFM  ) a culinary destination? Is it a neighborhood bar? Is it a lifestyle? Or is it just a fancy-pants grocery store that's trying too hard?�

  • [By David Hanson]

    7. Whole Foods Market (NASDAQ: WFM  ) Whole Foods Market is often jokingly labeled "Whole Paycheck" because of its steeper-than-average grocery prices. Similarly, the company's stock price also sports a high price tag. Despite trading over 10% lower than its all-time high, the stock still trades at almost 34 times trailing earnings. The grocer's fiercely loyal customer base and brand power are not compelling enough for Buffett to pay up for shares of the leader in a historically low-margin industry.

Top 10 Cheap Stocks For 2014: Popular Inc.(BPOP)

Popular, Inc., through its subsidiaries, provides a range of retail and commercial banking products and services primarily to corporate clients, small and middle size businesses, and retail clients in Puerto Rico and Mainland United States. It offers deposit products; commercial, consumer, and mortgage loans, as well as lease finance; and finance and advisory services. The company also offers trust and asset management, brokerage and investment banking, and insurance and reinsurance services. As of December 31, 2010, it owned and occupied approximately 94 branch premises and other facilities in Puerto Rico; and 119 offices, including 20 owned and 99 leased in New York, Illinois, New Jersey, California, Florida, and Texas. Popular, Inc. was founded in 1917 and is headquartered in San Juan, Puerto Rico.

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    Popular (NASDAQ: BPOP) shares tumbled 5.54 percent to $27.48 after Morgan Stanley downgraded the stock from Equal-weight to Underweight.

    Pacific Coast Oil Trust (NYSE: ROYT) down, falling 7.13 percent to $16.70 after the company priced a public offering by Pacific Coast Energy Company LP and other selling unitholders of 13,500,000 trust units at a price of $17.10 per unit.

Top 10 Cheap Stocks For 2014: TranSwitch Corporation(TXCC)

Transwitch Corporation designs, develops, and supplies semiconductor and intellectual property solutions for voice, data, and video communications equipment. The company provides integrated multi-core network processor system-on-a-chip (SoC) and software solutions for fixed, 3G and 4G mobile, VoIP, and multimedia infrastructures. It offers converged network infrastructure products, including infrastructure VoIP processors comprising Entropia series of processors for wire-line and wireless carrier equipment; EoS/EoPDH mappers and framers for formats and data speeds in the access portion of the network; tributary switches that enable traffic to be switched or re-arranged; and carrier Ethernet solutions consisting of Ethernet controllers and switches, as well as circuit emulation and clock recovery devices. The company also provides FTTx protocol processors, such as mustang, a system-on-chip solution for EPON optical network unit equipment; COLT processor, a system-on-chip so lution for the optical line terminator equipment; and Diplomat-ONT product, an integrated SoC solution for GPON ONU applications, as well as access VoIP processors and access controllers. In addition, it offers broadband customer premises equipment, including multi-service communications processors comprising Atlanta processor, a multi-service SoC for customer premises equipment that supports toll-quality telephone voice, fax, and routing functionality; and HDMI, displayport, HDP, and Ethernet IP cores for consumer electronics, home network equipment, and industrial and automotive applications. The company serves public network systems OEMs, WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs, as well as government, university, and private laboratories. It sells its products through direct sales force, independent distributors, and sales representatives. The company was founded in 1988 and is headquartered in Shelton, Connecticut.

Top 10 Cheap Stocks For 2014: Freeport-McMoran Copper & Gold Inc.(FCX)

Freeport-McMoRan Copper & Gold Inc. engages in the exploration, mining, and production of mineral resources. The company primarily explores for copper, gold, molybdenum, silver, and cobalt. It holds interests in various properties, located in North and South America; the Grasberg minerals district in Indonesia; and the Tenke Fungurume minerals district in the Democratic Republic of Congo. As of December 31, 2010, the company?s consolidated recoverable proven and probable reserves totaled 120.5 billion pounds of copper, 35.5 million ounces of gold, 3.39 billion pounds of molybdenum, 325.0 million ounces of silver, and 0.75 billion pounds of cobalt. The company was founded in 1987 and is headquartered in Phoenix, Arizona.

Advisors' Opinion:
  • [By Selena Maranjian]

    Freeport McMoRan Copper & Gold (NYSE: FCX  ) shed 8% and yields about 4.5%. The world's largest publicly traded copper producer has been hurt by falling copper and gold prices, and a deadly mine disaster�in Indonesia led to the closing of one of its mines (also one of the world's biggest mines). That mine has resumed production, though not yet at full capacity. Meanwhile, slowing growth in China and labor strikes haven't helped. The company diversified its operations considerably when it bought a pair of oil and gas producers. The stock seems rather undervalued.

  • [By Rich Smith]

    This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines feature a pair of new buy ratings for large-caps Intel (NASDAQ: INTC  ) and Freeport-McMoRan (NYSE: FCX  ) . But the news isn't all good.

Top 10 Cheap Stocks For 2014: UnitedHealth Group Incorporated(UNH)

UnitedHealth Group Incorporated provides healthcare services in the United States. Its Health Benefits segment offers consumer-oriented health benefit plans and services to national employers, public sector employers, mid-sized employers, small businesses, and individuals; and non-employer based insurance options for purchase by individuals. It also provides health and well-being services for individuals aged 50 and older; and for services dealing with chronic disease and other specialized issues for older individuals, as well as health plans for the beneficiaries of acute and long-term care Medicaid plans. This segment offers its services through a network of 730,000 physicians and other health care professionals, and 5,300 hospitals. Its OptumHealth segment provides health, financial, and ancillary services and products that assist consumers through personalized health management solutions; benefit administration, and clinical and network management; health-based financi al services; behavioral solutions; and specialty benefits, such as dental, vision, life, critical illness, short-term disability, and stop-loss product offerings. The company?s Ingenix segment offers database and data management services, software products, publications, consulting and actuarial services, business process outsourcing services, and pharmaceutical data consulting and research services. Its Prescription Solutions segment provides integrated pharmacy benefit management services comprising retail network pharmacy contracting and management, claims processing, mail order pharmacy services, specialty pharmacy, benefit design consultation, rebate contracting and management, drug utilization review, formulary management programs, disease therapy management, and adherence programs to employer groups, union trusts, managed care organizations, Medicare-contracted plans, Medicaid plans, and third party administrators. The company was founded in 1974 and is based in Minne tonka, Minnesota.

Advisors' Opinion:
  • [By Paul Ausick]

    Big Earnings Movers: International Business Machines Corp. (NYSE: IBM) is down 6.4% at $174.83 and gets the blame for dragging the DJIA down today. Goldman Sachs Group Inc. (NYSE: GS) is down 2.5% at $158.14 on lighter revenues. UnitedHealth Group Inc. (NYSE: UNH) is down 5.1% at $71.36 after so-so earnings and a cautious outlook.

  • [By Sean Williams]

    UnitedHealth Group (NYSE: UNH  ) , the United States' largest health insurance company, kicked off earnings season for insurers this morning with more of a whimper than a bang.

Top 10 Cheap Stocks For 2014: USG Corporation(USG)

USG Corporation, through its subsidiaries, engages in the manufacture and distribution of building materials worldwide. The company offers gypsum and related products, including gypsum wallboard, joint compounds used for finishing wallboard joints, cement boards, glass mat sheathing, gypsum fiber panels, poured gypsum underlayments, ultra light panels, and various construction plaster products. Its gypsum products are used in various building applications to finish the interior walls, ceilings, and floors in residential, commercial, and institutional constructions, and repair and remodel constructions. The company also produces gypsum-based products for agricultural and industrial customers to use in various applications, including soil conditioning, road repair, fireproofing, and ceramics. In addition, it manufactures ceiling grid and acoustical ceiling tile for electrical and mechanical systems, and air distribution and maintenance applications. USG Corporation distribut es its gypsum products through specialty wallboard distributors, building materials dealers, home improvement centers and other retailers, contractors, and a network of distributors. Further, it distributes other manufacturers? gypsum wallboard, joint compound and other gypsum products, as well as drywall metal, insulation, and roofing products and accessories. The company sells its products under SHEETROCK, DUROCK, FIBEROCK, SECUROCK, LEVELROCK, RED TOP, IMPERIAL, DIAMOND, SUPREMO, AURATONE, ACOUSTONE, DONN, DX, FINELINE, CENTRICITEE, CURVATURA, and COMPASSO brands. The company was founded in 1901 and is based in Chicago, Illinois.

Advisors' Opinion:
  • [By Seth Jayson]

    USG (NYSE: USG  ) reported earnings on April 24. Here are the numbers you need to know.

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

  • [By Holly LaFon]

    Pimco managing director Mark Kiesel mentions Whirlpool (WHR), Weyerhaeuser (WY), USG (USG), Toll Brothers (TOLL) and KB Home (KBH) as good plays on housing:�

Wednesday, December 18, 2013

Can ConAgra Earnings Keep Up With Kraft Foods and Nestle?

ConAgra (NYSE: CAG  ) will release its quarterly report on Thursday, and investors have increasingly doubted whether the food giant can hold its own in an increasingly competitive environment in the industry. With Nestle (NASDAQOTH: NSRGY  ) and Kraft Foods (NASDAQ: KRFT  ) both having held up much better since August than ConAgra has, skeptics are pointing at ConAgra's lack of earnings growth as a reason to doubt its capacity for future success.

ConAgra is a colossus in the North American food market, with popular retail brands including Peter Pan peanut butter, Healthy Choice TV dinners, and Orville Redenbacher's popcorn. Yet with its acquisition of Ralcorp Holdings last year, ConAgra boosted its already extensive presence in the private-label food production industry, and it also has a big presence in commercial-food preparation to provide ingredients and branded food products to food-service and other industrial customers. Still, the key for ConAgra is whether it can take those strengths and turn them into bigger profits. Let's take an early look at what's been happening with ConAgra over the past quarter and what we're likely to see in its report.

Stats on ConAgra

 

 

Analyst EPS Estimate

$0.55

Change From Year-Ago EPS

(3.5%)

Revenue Estimate

$4.60 billion

Best Medical Companies To Buy Right Now

Change From Year-Ago Revenue

23%

Earnings Beats in Past 4 Quarters

2

Source: Yahoo! Finance.

Will ConAgra earnings get better this quarter?
Analysts have gotten much less optimistic about ConAgra earnings in recent months, slicing almost a dime per share from their November-quarter estimates while making more modest cuts of $0.02 to $0.05 per share for their full-year fiscal 2014 and 2015 projections. The stock hasn't responded well, falling 6% since early September.

ConAgra's woes really began during the summer, with ConAgra giving an early warning about its August-quarter results. The company cut its earnings expectations for the full fiscal year by 1% to 2.5%, reducing its growth rate from the previous year's earnings to just 8% to 10%. ConAgra pointed to weak earnings in the August period, calling out its consumer foods segment as posing particular challenges for the company. Some analysts speculated that customers have shifted their preferences more toward natural foods, which would pose a threat not just to ConAgra but also to Kraft and Nestle as well.

Looking forward, the picture for ConAgra still looks uncertain. On one hand, ConAgra has responded to its recent weakness by offering more promotions and boosting its advertising and marketing in an effort to capture more customers. Yet even at a valuation that's far cheaper than Kraft Foods or food peer Kellogg (NYSE: K  ) , ConAgra has had trouble producing the growth that investors have wanted to see, especially in light of price increases that have driven away part of its demand.

The big question for ConAgra is whether it can make maximum use of its buyout of Ralcorp to profit from private-label opportunities. Increasingly, grocery-store chains have turned to private-label products to try to raise their own paper-thin profit margins, and ConAgra has done a good job of creating lucrative private-label partnerships to create win-win scenarios for everyone involved. In many ways, private-label foods have been ConAgra's biggest weapon against Nestle, with its world-renowned brand, as well as Kraft's popular name-brand products as well. It has taken time for ConAgra to integrate Ralcorp fully into its operations, but long-term synergies from the acquisition should help ConAgra in its broader efforts to keep costs under control.

In the ConAgra earnings report, watch to see if the company comments on its recent loss in a ruling concerning lead-paint contamination. ConAgra has argued that it shouldn't have been subject to liability in the first place, although the court found it responsible for the liability of W.P. Fuller. Unless the $1.1 billion judgment is overturned, it could cause even more grief for an already-struggling ConAgra and its results going forward.

Can you own a food stock forever?
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal "The Motley Fool's 3 Stocks to Own Forever." These picks are free today! Just click here now to uncover the three companies we love. 

Click here to add ConAgra to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Tuesday, December 17, 2013

4 Stocks Rising on Unusual Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Stocks Set to Soar on Bullish Earnings

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Rocket Stocks Worth Buying This Week

With that in mind, let's take a look at several stocks rising on unusual volume today.

Cempra

Cempra (CEMP) is a clinical-stage pharmaceutical company which is developing antibiotics to meet critical unmet medical needs in the treatment of bacterial infectious diseases. This stock closed up 3.6% to $13.50 in Monday's trading session.

Monday's Volume: 387,000

Three-Month Average Volume: 162,828

Volume % Change: 125%

From a technical perspective, CEMP spiked higher here into new all-time high territory with above-average volume. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $6.95 to its intraday high of $13.63. During that uptrend, shares of CEMP have been making mostly higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if CEMP can manage to clear Monday's high of $13.63 with strong volume.

Traders should now look for long-biased trades in CEMP as long as it's trending above some near-term support at $12.50 and then once it sustains a move or close above Monday's high of $13.63 with volume that hits near or above 162,828 shares. If we get that move soon, then CEMP will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that move are $17 to $18.

Virtusa

Virtusa (VRTU) is an information technology services company. This stock closed up 5.8% at $36.47 in Monday's trading session.

Monday's Volume: 260,000

Three-Month Average Volume: 107,541

Volume % Change: 171%

From a technical perspective, VRTU spiked sharply higher here right above some near-term support at $34.03 with above-average volume. This stock has been trending sideways for the last month and change, with shares moving between $33.55 on the downside and $36.80 on the upside. Shares of VRTU are now quickly moving within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern. That breakout will hit if VRTU manages to take out Monday's high of $36.53 to its 52-week high at $36.80 with high volume.

Traders should now look for long-biased trades in VRTU as long as it's trending above Monday's low of $34.47 to more near-term support at $33.55, and then once it sustains a move or close above those breakout levels with volume that's near or above 107,541 shares. If that breakout hits soon, then VRTU will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $45.

YPF Sociedad Anonima

YPF Sociedad Anonima (YPF) is an integrated oil and gas company. This stock closed up 8.3% at $31.66 in Monday's trading session.

Monday's Volume: 3.17 million

Three-Month Average Volume: 949,836

Volume % Change: 272%

From a technical perspective, YPF gapped sharply higher here and broke out into new 52-week high territory with heavy upside volume. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $13.63 to its intraday high of $31.99. During that uptrend, shares of YPF have been making mostly higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term for shares of YPF if this stock manages to take out Monday's high of $31.99 with high volume.

Traders should now look for long-biased trades in YPF as long as it's trending above Monday's low of $30.51 and then once it sustains a move or close above $31.99 with volume that's near or above 949,836 shares. If we get that move soon, then YPF will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are its next major overhead resistance levels at $35 to $40.

Idexx Laboratories

Idexx Laboratories (IDXX) develops, manufactures and distributes products and provides services for the veterinary, bioresearch, livestock and poultry, water and dairy markets. This stock closed up 1.1% at $103.40 in Monday's trading session.

Monday's Volume: 982,000

Three-Month Average Volume: 309,045

Volume % Change: 143%

From a technical perspective, IDXX spiked modestly higher here right above some near-term support at $101.33 with above-average volume. This stock has been downtrending for the last month and change, with shares moving lower from its high of $113.11 to its recent low of $101.33. During that downtrend, shares of IDXX have been consistently making lower highs and lower lows, which is bearish technical price action. That said, the downside volatility for IDXX now looks to be over in the short-term, and the stock could be ready to for a tradable spike higher.

Traders should now look for long-biased trades in IDXX as long as it's trending above Monday's low of $102.69 or above more near-term support at $101.33 and then once it sustains a move or close above Monday's high of $104.79 to its 50-day moving average of $105.48 with volume that's near or above 309,045 shares. If we get that move soon, then IDXX will set up to re-test or possibly take out its next major overhead resistance levels at $108.82 to $110. Any high-volume move above those levels will then give IDXX a chance to re-test or possibly take out its 52-week high at $113.11.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>5 Stocks Ready to Break Out



>>3 Big Stocks on Traders' Radars



>>5 Stocks Under $10 Set to Soar

Follow Stockpickr on Twitter and become a fan on Facebook.

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.


Monday, December 16, 2013

Rosetta Stone Carves Brand Image With New Opportunities

The following video excerpt was taken from an interview with Steve Swad, CEO of Rosetta Stone (NYSE: RST  ) , in which he talks about his business philosophy, and how it is driving success both for language learners and for the company itself. In this segment, he discusses how acquisition opportunities and new customers will further Rosetta Stone's brand.

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

 

Matt Argersinger: So you mentioned on the last call that Rosetta Stone now kind of is in position with the balance sheet that you guys have a little bit of flexibility with cash to go after maybe some acquisitions.

Top 5 Performing Companies To Invest In 2014

Steve Swad: Yes.

Matt: Any sense of what an acquisition might look like and what you guys would be looking to add capability-wise?

Swad: I mean we're in the market looking. Earlier this week I was talking to companies, and it's something that will speed this strategy that I -- something that will accelerate our brand. New products would be wonderful, that we could modify a little bit and put a Rosetta Stone touch on or expand the distribution, new geographical locations. But take those pillars that we talked about and then are there companies that can help us accelerate within those pillars?

Matt: And what about kind of a strategy of targeting new institutional customers? That was also brought up in the recent call. Any details on that strategy or how it's going?

Swad: That business is run by one of our newer leaders, Judy Verses, and she's doing a wonderful job. She came from Blackboard. And she's in Tokyo as we speak talking to some large potential customers. I would say there's not a week that goes by that Judy's team is not talking to large customers to try to penetrate what is an enormous market around the world.

Matt: Do you think opportunities there are bigger than they are on the retail side?

Swad: They're both big. That's a great question, actually. The market itself, the retail side or consumer side is bigger, but both are enormous. You've heard me say it's an $80 billion global market and our locations, we participate in about $40 billion. That's plenty, and we're a little, tiny $270 million company, so we've got a lot of ad room in the consumer market and in the institutional markets.

Saturday, December 14, 2013

Apartment rents will keep rising next year

Higher rents are ahead next year for the nation's apartment dwellers but some cities will see smaller bumps than in recent years, market researchers say.

Rents will increase 3.1% nationally next year, about the same as this year, forecasts apartment market researcher Axiometrics.

Meanwhile, researcher Reis sees rents rising an average of 3.3% in 2014.

Tight supply and rising demand are still the key issues.

VIDEO: High rents equals tight quarters, says Hadley Malcolm

"The construction pipeline really closed during the recession. We're still clawing our way back," says Ryan Severino, Reis chief economist.

Cities that have seen some of the sharpest increases will see rents rise a little more slowly next year, says Jay Denton, Axiometrics vice president of research.

Since the end of 2009, rents have soared 43% in San Francisco, including an 8% jump this year, Denton's data shows.

Next year, they'll go up 5.1% given still strong demand and limited new supply.

Seattle, which posted a 6.5% hike this year, will rise 4.4% next year. Austin, Texas, up 5.2% this year, will go up 3.7%

MORE: Towers for the rich rising in New York City

Construction has been uneven across the country. Some major metros that have led the way in new construction are now at risk of having an oversupply of apartments.

Washington D.C. "has probably already gone over that cliff," Denton says. Rents there will fall 2.5% next year, Axiometrics predicts.

Austin has also seen a lot of construction. "It'll be difficult to raise rents there," Severino says.

Nationwide, almost 230,000 new apartments will be added to the supply next year, Axiometrics says. That's up from 170,000 this year and only 87,000 last year.

Any slowdown in rent increases will be good news for renters.

Half of all U.S. renters paid more than 30% of their income for rent — a traditional measure of affordability — in 2010, up 12 percentage points from a decade earlier, accord! ing to a recent study from Harvard's Joint Center for Housing Studies.

Apartment rents have risen every year since 2010, market data shows.

Meanwhile, the share of Americans who rent grew from 31% in 2004 to 35% in 2012, the study says, driven in part by the foreclosure crisis.

Trevor Coccimiglio, 24, is looking to rent a room in a shared house in San Francisco for less than $1,200 a month. That's about what his dad pays to rent an entire house in suburban Salt Lake City.

"That's just the cost," says Coccimiglio, who's taken a new investment banking job.

He recently looked at a $900-a-month room in a 3-bedroom, 864-square-foot apartment. The parking space costs $75 extra per month.

Thursday, December 12, 2013

Budget deal will costs air travelers a little more

Airline tickets could get more expensive, but the Transportation Security Administration would continue to guard exit lanes at airports, under the budget deal the House will vote on Thursday.

Both provisions dealing with TSA have been contentious, but one is strongly opposed by the airlines and the other is supported by airports.

Lawmakers have long eyed the TSA's security fees added to the price of each ticket as an easy source of revenue to reduce the federal deficit, including in President Obama's budget blueprint. The White House supported the deal for "targeted fee increases and spending cuts."

The congressional budget deal would change the fees from $2.50 per leg of a connecting flight capped at $5 per trip, to a flat $5.60 each way on a trip. This would generate an estimated $12.6 billion over the next decade, which the legislation says will be deposited in the general government fund.

Airlines fought the increase, fearing that any hike in fares could discourage travel. The group Airlines for America, which represents the largest carriers, distributed air-sickness bags at Washington's Reagan National Airport after the Thanksgiving holiday, arguing the higher fees are a tax that would make passengers "sick."

Jean Medina, a spokeswoman for Airlines for America, said the group recognized that Congress had to make tough budget choices and that TSA airport staffing is important. But airlines hope lawmakers will consider more changes to overhaul how the industry is taxed and the way fees are used, she said.

"As we have said consistently, airlines and our customers are already overtaxed, and we are disappointed that fees on air travel were increased, and believe those higher taxes will impact demand, jobs and our economy," Medina said.

The TSA money is part of a bipartisan deal for $85 billion deal in spending cuts and fees to replace looming mandatory spending cuts. But conservative House members and senators who oppose greater spending could also oppose the ! budget deal.

The anti-tax advocacy group Club for Growth opposed the budget proposal for increasing the size of government, even if reducing the deficit at the same time.

"As far as we're concerned, the TSA fees are just the same as any other tax increase," said Barney Keller, a club spokesman. "Saying this bill is deficit reduction is a red herring."

The other TSA provision would require the agency to continue staffing the exit lanes between arriving flights and baggage claim and shouldering the costs. TSA staffs those slots at 155 airports – about one-third of those nationwide – but told the airports in October to take over those positions to save the agency $88 million per year amid federal spending cuts.

Airports opposed the move, saying it would cost them more than $100 million collectively each year. The legislation says TSA "is responsible for monitoring passenger exit points" at the airports where the agency was staffing the slots on Dec. 1.

"I am pleased that the proposed budget agreement would require TSA to continue to monitor exit lanes," said Mark M. Reis, the managing director of Seattle-Tacoma International Airport and the 2014 board chairman of Airports Council International-North America.

Wednesday, December 11, 2013

Can Facebook Achieve Stellar Revenue Growth?

Facebook's (NASDAQ: FB  ) overall engagement continues to rise, and the great thing is that the company commands a significant share in the mobile market. Facebook made history this October, when it announced a 60% increase in revenue. In order to justify its $120 billion market valuation, Facebook is expected to increase its revenue next year to $10.4 billion. Can the social network achieve this stellar revenue growth?

A disruptive force
Facebook will eventually be able to raise the bar on search. Graph Search, which has been designed to give natural answers to queries, is a work in progress. The search engine ramps up Facebook's competition with its rivals. Facebook says you can use Graph Search to find more of the people you're looking for through connections. It has the potential to become a disruptive force in the search engine space. Eventually, it will be a revenue-generating solution for Facebook.

Geographical diversification 
Facebook should benefit from international growth, because the U.S. represents less than 20% of total traffic, but almost 50% of overall revenues. International markets provide a greater opportunity for the company. Additionally, Facebook has been focusing heavily in Japan, as well as building up its local presence. Facebook can leverage its products in Asia and the Middle East, and push for ad sales in Europe. Given the gap between the company's monetization levels in international markets, there is a great opportunity for Facebook to grow.

Best Cheap Stocks To Buy For 2014

Advertising age
Now that Instagram has entered the advertising age, Facebook can start benefiting from it. Investors can expect that Instagram's 150 million monthly average users will bring in about $606 million a year. However, Instagram's additional significance could be how it provides Facebook with better insights among younger users. If Instagram can improve Facebook's adaptability, it could increase revenue-generating opportunities.

Competitors
Let's not lose sight of the fact that Facebook isn't the only one operating in the promising social network market. With about 200 million users, Renren (NYSE: RENN  ) provides exposure to a Chinese social network. Renren isn't strictly an advertising company, but it is skilled at using its social network to promote gaming. It is turning its attention to the mobile Internet and is now dedicating 45% of the workforce to mobile development. The products Renren is betting on are the smartphone version of the social network and mobile gaming.

LinkedIn (NYSE: LNKD  ) did grow its membership by 38% to 295 million users. However, due to the increasing relevance of competitors, it is becoming difficult to justify its valuation. It recently launched two new mobile products. The first is a mobile extension of its desktop tool. The second  will be offered on Apple's iOS. With these products, LinkedIn will hope to mimic mobile user growth enjoyed by Facebook.

Conclusion
The bottom line probably lies in Facebook's ability to enter new segments and launch innovative applications. Acquisitions could be crucial. For example, the purchase of  Monoidics will allow Facebook to improve quality control of applications. Over the long term, quality improvements have the potential to drive revenue growth because they allow the user experience to be rich and valuable. Ultimately, one in seven people on Earth has a Facebook profile. With the world population expected to reach nine million in the next 12 years, Facebook's user base is expected to increase, and so is the company's potential to achieve stellar revenue growth.

More compelling ideas from The Motley Fool
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen 6 picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Monday, December 9, 2013

Japan stocks decline following rally

LOS ANGELES (MarketWatch) - Japanese stocks slipped at the open of trade Tuesday, as the Nikkei Stock Average pulled back from its 2.3% rally in the previous session. The Nikkei Stock Average (JP:NIK) shed 22 points, or 0.1%, to 15,628.07, and the broader Topix was flat at 1,255.14. Financial shares as well as some tech names were under pressure, including Trend Micro Inc. (JP:4704) (TMICY) , shares of which fell 2.8% following their 3% surge on Monday, and Sumitomo Mitsui Financial Group Inc. (JP:8316) (SMFG) as its stock lost 0.8%. In the currency market, the U.S. dollar held above the ¥103 level and the euro moved up toward ¥142.

Read the full story:
Asia stocks mostly lower, with China data in focus

Sunday, December 8, 2013

Mid-Day Market Update: U.S. Stocks Turn Red; OmniVision Shares Tumble On Weak Outlook

5 Best China Stocks To Watch For 2014

Midway through trading Wednesday, the Dow traded down 0.28 percent to 15,869.45 while the NASDAQ tumbled 0.17 percent to 4,030.50. The S&P also fell, dropping 0.32 percent to 1,789.49.

Top Headline
Express (NYSE: EXPR) issued a downbeat earnings forecast for the holiday quarter.

Express now projects a Q4 profit of $0.66 to $0.71 per share, versus analysts' estimates of $0.78 per share.

Express reported its Q3 net income of $19.3 million, or $0.23 per share, up from $17.4 million, or $0.20 per share, in the year-ago period. However, analysts expected a profit of $0.25 per share. Its sales climbed 7% to $503 million, while same-store sales gained 5% in the period.

Equities Trading UP
OncoMed Pharmaceuticals (NASDAQ: OMED) shot up 8.62 percent to $30.09 after the company initiated Phase 1B trial of WNT-parthway-target antibody. Jefferies lifted the price target on the stock from $27 to $46.

Shares of G-III Apparel Group (NASDAQ: GIII) got a boost, shooting up 10.65 percent to $64.50 after the company reported upbeat Q3 results and raised its FY14 forecast.

BRE Properties (NYSE: BRE) was also up, gaining 11.79 percent to $59.66 after Bloomberg reported that the company is working with Wells Fargo on a possible sale.

Equities Trading DOWN
Shares of Express (NYSE: EXPR) were down 22.82 percent to $19.04 after the company reported downbeat Q3 earnings and issued a weak Q4 earnings forecast.

OmniVision Technologies (NASDAQ: OVTI) shares tumbled 6.32 percent to $14.98 after the company issued downbeat third-quarter forecast.

Sears Holdings (NASDAQ: SHLD) was down, falling 7.90 percent to $51.16 after the company's CEO Edward Lampert cut his stake in the company to 48.4% from 55.4%.

Commodities
In commodity news, oil traded up 0.69 percent to $96.70, while gold traded up 0.39 percent to $1,225.60.

Silver traded up 1.34 percent Wednesday to $19.32, while copper rose 2.02 percent to $3.23.

Eurozone
European shares were lower today. The Spanish Ibex Index tumbled 0.58 percent, while Italy's FTSE MIB Index declined 0.16 percent. Meanwhile, the German DAX dropped 0.87 percent and the French CAC 40 declined 0.57 percent while U.K. shares fell 0.30 percent.

Economics
The MBA's index of mortgage application activity dropped 12.80% in the week ended November 29.

Private-sector employers added 215,000 jobs in November, according to Automatic Data Processing. However, economists were expecting an addition of 170,000 jobs in the month.

U.S. trade deficit dropped 5.4% to $40.6 billion in October. However, economists were expecting the deficit to decline to $40.0 billion in the month. The nation's exports increased 1.8% to $192.7 billion, while imports rose 0.4% to $233.3 billion.

The ISM non-manufacturing index fell to 53.90 in November, versus a prior reading of 55.40. However, economists were expecting a reading of 55.00.

Sales of new US homes surged 25.4% to an annual rate of 444,000 in October, versus 354,000 in September. However, economists were expecting sales to total 419,000 in October.

Crude supplies declined by 5.6 million barrels for the week ended November 29, the US Energy Information Administration reported. However, analysts were expecting a fall of 1.25 million barrels.

The Fed will release its Beige Book at 2:00 p.m. ET.

Posted-In: Earnings News Guidance Eurozone Commodities Forex Global Econ #s Economics Hot Intraday Update Markets Movers Tech

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Around the Web, We're Loving... Lightspeed Trading Presents: Thunder and Tubleweeds: Trading Techniques for the New Market Enviroment Pope Francis Rips 'Trickle-Down' Economics Come See How the Pro's Trade in this Exclusive Webinar Wynn, MGM, Other Casino Giants Vying For U.S. Turf What Should You Know About AMZN? Most Popular Why Did Apple Just Buy Topsy Labs? The Apple - China Mobile Deal By The Numbers Why Tesla Was Up 16 Percent Tuesday iPhone Pre-Orders May Finally, Quietly Begin Taking Hold with China Mobile The 10 Apple Acquisitions of 2013 iPad Shipments Increase In Q4 After Retina Mini Sold Out On Black Friday Related Articles (BRE + BZSUM) Benzinga's M&A Chatter for Wednesday December 4, 2013 Market Wrap For November 4: Economy Is Steady, Tapering Could Be Around The Corner Update: Shares of BRE Properties Jump on Bloomberg Report of Possible Company Sale Mid-Day Market Update: U.S. Stocks Turn Red; OmniVision Shares Tumble On Weak Outlook Benzinga's Volume Movers Mid-Morning Market Update: Markets Edge Higher; Express Issues Downbeat Earnings Outlook