The housing market in the US is beginning to show signs of recovery as the prices have started rising. This prospective recovery has reintroduced investors' interest to the housing industry. Most importantly, the complementary segments of the industry are also expected to profit and the stock prices are likely to improve. In this scenario, a key opportunity would be to identify a homebuilding services company with strong financial standing which is most likely to benefit from the industry's recovery.
Recovery in Housing Market and Homebuilding Services Companies
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The chart above shows the performance of Case Schiller Index which shows the moving average of home prices since 2000. We can clearly see the effect of the financial meltdown in FY08; however, it appears that the housing industry has hit the bottom in FY12 and is on its way to a recovery. The most important sign of
Target date mutual funds and ETFs are investment products targeting a particular investment horizon through a fairly passive asset allocation approach. The year in each target date fund/ETF corresponds to the year in which investors may likely begin withdrawing assets. Currently, funds/ETFs with target dates Retirement Income (Today), 2010, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, and 2055 are available.
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These target date funds/ETFs appeal to long-term investors because:
- Each represents a broadly diversified portfolio in a single fund that allocates among three major asset classes across U.S. and international equities, fixed income, cash and short-term investments,
- Ideal for investors who do not have the expertise to construct a well diversified portfolio,
- Each could be held as the only investment in the investor account or as a core holding to pair with other actively managed funds and individual stocks,
- Fund managers have great flexibility in constructing
Another quarter is left behind and J.C. Penney (JCP) continues to bleed cash like there is no tomorrow. The company's latest quarter didn't paint a pretty picture either. As time is ticking out, the company's options are narrowing. Can the company be saved?
The last quarter's results indicate that Ron Johnson's ideas were not good enough to help the company. The company reported a loss of $1.58 per share; excluding one-time items, the loss was $1.31 per share. The analysts were expecting the company to report a loss of 96 cents per share. To make the matters worse, the company reported a revenue decline of 16% (the analysts were expecting a drop of 15%) in addition to falling margins, as the gross margin fell from 37.6% to 31.3% since last year. The current margins represent the lowest margins in the last 10 years for J.C. Penney. There are so
On Thursday, May 16th, Applied Materials, Inc. (AMAT) reported the results of what I believe to be a very strong second quarter. The company's Q2 EPS of $0.16/share beat Street estimates by $0.03/share, and its revenue of $1.97 billion beat Street estimates by an impressive $0.06 billion. In the wake of the company's impressive second quarter, I wanted to examine several catalysts behind my decision to consider a long-term position in this moderately-yielding technology play.
According to Applied Materials Chairman and CEO, Mike Splinter, "For the second quarter in a row, Applied Materials demonstrated strong order-based performance of over $2 billion and we are seeing increasing pull from some of our largest strategic customers for our key enabling technologies. Given such behavior from our strategic customers, we remain committed to driving profitable growth."
Since the company's strategic partners played a key role in its quarterly performance, I'd continue to
According to the American Diabetes Association, over 25 million people in the US alone have diabetes and the numbers keep on growing. Although insulin injections have come a long way, poking yourself with a needle in public still draws unwanted attention. MannKind Corporation (MNKD) is on the cusp of releasing an inhalable insulin treatment, Afrezza, that promises to revolutionize the way people treat this disease.
The Exubera Menace
Back in mid-2006, Pfizer (PFE) introduced an inhalable insulin treatment system created by Nektar Therapeutics (NKTR). Put mildly, it was a disaster. Just over a year after introducing the drug, Pfizer pulled the plug after losing about $2.8 billion on the flop.
The Exubera debacle still haunts MannKind, scaring away potential investors. What the market as a whole hasn't considered is that although both the treatments involve an inhalable form or insulin, the similarities stop there.
Pfizer tried to market
John Wiley & Sons, Inc. (JW.A) provides content and content-enabled digital services to customers worldwide.
Core businesses produce scientific, technical, medical and scholarly journals, reference works, books, database services, and advertising; professional books, subscription products, certification and training services and online applications; and educational content and services.
Education content and services include integrated online teaching and learning resources for undergraduate and graduate students, educators, and lifelong learners worldwide as well as secondary school students in Australia.
The use of technology enables the company to make its content efficiently more accessible to its customers around the world. The company maintains publishing, marketing, and distribution centers in the United States, Canada, Europe, Asia, and Australia.
1. Highly Rated Brand
John Wiley & Sons is consistently one of the highest rated publishers in the Thomson ISI Journal Citation Report, an important evaluator of journal impact. This has had an impact on its
In this article, I will be searching for companies in the Materials sector, which has lagged the S&P 500 (SPY). I chose the materials sector because out of the nine major sectors of SPDR, the materials sector ETF (XLB) has lagged the S&P 500 by the most. So far this year, the S&P 500 has returned 16.62% whereas the XLB has returned 9.17%, which shows a significant outperformance by the SPY. I will be searching for companies that in addition to lagging the SPY have also lagged the XLB.
Goal #1: Select stocks that are Profitable
Goal #2: Select stocks with a dividend yield higher than the 10-year US Treasury rate.
Goal #3: Select stocks that are debt free.
Goal #4: Select stocks with the lowest beta.
To find stocks that meet all my goals, I will be using the TD Ameritrade stock screener. In
Apple (AAPL) is in a fierce battle with Samsung (SSNLF.PK) for market share in smartphones and tablets. It was recently reported on Forbes.com Samsung now has double the market share of Apple in smartphones with a 30% increase year-over-year for the first quarter of 2013. Samsung's strategy has been to compete in all segments of the smartphone market and has benefited from the higher growth in low-cost smartphones where Apple is not currently competing. The tablet market is seeing equally tough competition from Samsung and the other Android OS (GOOG) vendors. Apple now has a market share of 46.4% in this market which is still growing at an amazing pace. The overall tablet market grew by over 100% year-over-year with smaller tablets seeing the most growth. Microsoft (MSFT) is competing well in the tablet market as well taking the number three spot in terms of market share.
I recently evaluated my portfolio and realized I was completely invested in companies with market capitalizations over $100 billion. With what looks like a recovery to the overall economy of the US, I wanted to reallocate some of my portfolio to gain exposure to small cap stocks. I have always been fascinated by the biotechnology industry and wanted to add a little to my portfolio. The problem for me was I didn't really know much about the industry and that can spell disaster for an investor particularly with this industry which is universally defined as a high risk. The performance of these stocks is tied to the successful completion of phase I, II, and III clinical trials and FDA approval to commercialize the product. Failure at any one of these milestones can destroy the stock's value and subsequently the investor's portfolio. Of course the flip-side of that equation is also
Amgen (AMGN) shares (up over 22% year-to-date) have had an impressive run this year, outpacing the S&P 500 by about 6%. Nevertheless, despite outpacing the broader market, Amgen has only matched the Health Care Sector Select Sector SPDR (XLV) (up about 22% YTD) and has greatly lagged its large-cap biotech peers. For instance, this year so far shares of Gilead Sciences (GILD) (up 50% YTD), Celgene (CELG) (up 57% YTD), Biogen Idec (BIIB) (up 55% YTD), and Regeneron Pharmaceuticals (REGN) (up 55% YTD) have all increased between 50 and 57% (see graph below). But is this divergence in performance between AMGN and other large-cap biotech stocks justified?
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I understand that these other, large-cap biotech stocks deserve higher multiples (i.e. higher P/E ratios and P/S ratios) because of their higher near-term growth prospects. But I believe Amgen deserves at least some degree of additional multiple expansion in the
It has been a great week for the USD as it gained against all the majors. The New Zealand dollar was the last market where the futures traders were long. Early in the week, the kiwi bought .8316 cents per USD, but by the end of the week, it was down under the 81 handle. Should the weekly chart close around this level, it looks like there will be some more to the downside. Remember one of the tricks of The Turtles, as taught by Ritch Dennis, was to hammer a weak Friday close, or, if the market is soaring, buy some more. Their theory was markets will continue their momentum. Speculators, according to last week's COT report, were big longs in this very small market. This could get ugly.
We doubt, however, it will get as ugly as has the AUD versus the USD (AUDUSD, FXA), Two weeks
Last week's "5 Stocks to Watch" performed fairly well, as four of the five selections traded higher. For this week's edition, I am hoping to have continued success as I choose five stocks in five different industries that are all showing signs of a breakout higher. Each stock below is trading with a great deal of momentum yet range in company size and has seen a variety of different performance levels. With that said, let's get started and take a look at five stocks that could rally in the immediate future.
After Breaking $50 this Stock Looks Poised to Trade Higher
For what it's worth, I hate to be a fair-weather fan, but shares of Citigroup (C) are rocketing higher with a complete change in sentiment and I am starting to like it more than my long-time favorite Wells Fargo (WFC). Last week the stock exploded from
This week we learned that E-Commerce Retail Sales growth slowed in the first quarter of 2013 compared to Q4 of 2012. Obviously, this is important information for Amazon.com (AMZN) shareholders, but does it mean we should sell the stock? Shareholders will be glad to hear that it is not a reason to sell the stock in my view. However, short sellers will be interested in why I would sell AMZN anyway.
The government published Quarterly E-Commerce Retail Sales data for the first quarter of 2013 this past week. The report showed sales increased 2.7% over Q4 2012, which was slower than reported fourth quarter growth of 4.4%. Total Retail Sales only managed 1.1% first quarter growth, reflecting the continued market share grab for e-commerce sales. However, e-commerce accounted for just 5.5% of total sales in Q1 versus only a slightly lower 5.4% share in Q4.
But what caused the
Shares of Campbell Soup Company (CPB) are riding high so far in 2013 with the manufacturer of popular convenience food brands experiencing a 37 percent rise in its stock year-to-date. On May 20, Campbell Soup Company is scheduled to report its third quarter 2013 earnings results, covering the three month period from February to April, and will hold a conference call for investors at 10AM Eastern Daylight Time. For a company that was founded during the post-bellum period after the U.S. Civil War, Campbell Soup Company is still generating excitement in 2013 after nearly 145 years in business. Specifically, the company will update analysts and investors during Monday's conference call about several innovative new food and beverage products that were announced at the end of 2012. The third quarter 2013 release will also provide insights into the financial performance of Campbell Soup Company with analysts expecting a consensus
It’s always a good idea to check in on your portfolio to make sure it’s still giving you the exposure you originally intended. But just like eating an apple a day or flossing every night, most of us tend to ignore this kind of well-intentioned advice. However, something I’m seeing in exchange traded product (ETP) flows and a chart my team put together recently made me think twice about ignoring my portfolio - especially when it comes to my emerging market holdings.
Take a look at these side-by-side charts, showing the MSCI Equity Sector Weightings from 1995-2013. One chart tracks sector weightings among emerging markets while one tracks sector weightings among developed markets.
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If I asked you to label one chart for emerging markets and one for developed, could you do it? It turns out the one of the left is for EM and the one on
At Kiplinger Magazine, Kathy Kristof put out this article yesterday titled "Five Lessons From Apple's (AAPL) Fall." Much of the commentary about Apple was about what you'd expect, but there is one bit of "conventional wisdom" mentioned that I would like to bring to your attention.
In the Kiplinger piece that came out, Rule #3 of the "lessons learned" from Apple's fall from grace is that you should partially liquidate any holding that doubles in value in a short period of time:
"Winners take chips off the table. Unless every stock in your portfolio doubles each year (in which case Warren Buffett would like to hire you), Apple's rise over the past 12 months likely caused it to become a disproportionately large share of your assets. That makes your portfolio riskier and less balanced and is a signal that it's time to sell a portion
Full Court Press
Not a day passes without the financial media denouncing gold as an investment option and hailing the bureaucrats heading the world's monopolist monetary central planning agencies as superheroes. It began prior to gold's recent breakdown, with widely cited bearish reports on gold published by Credit Suisse and Goldman Sachs, among others. Never mind that most of their arguments were easily unmasked as spurious. It should be no wonder, though: gold's rise was the most conspicuous evidence of faith in central banking being slowly but surely undermined. The banking cartel relies on the fiat money system remaining intact; the legal privilege of fractional reserve banking provides it with what is an essentially fraudulent profit center unparalleled by any other in the world (fraudulent in terms of traditional legal principles, but not in terms of the current law, of course). Not surprisingly, ever since the completely unrestrained fiat
On December 19th, 2012, Oncothyreon's (ONTY) shares fell roughly 50% as development partner Merck KGaA (MKGAY.PK) reported that L-BLP25 (or Stimuvax), a cancer immunotherapy that was being tested against non small-cell lung cancer (NSCLC), failed to meet its primary endpoint in a Phase III trial.
The price movement was on abnormally large volume of 32 million shares compared to a 20 day average of 2.5 million shares. Since the low of $1.71 per share on December 19th, the price has slowly appreciated up to the $2.50 level. That was the case, at least until today where the price fell 24.52%, closing at $1.97.
It is clear that this stock was run up on the prospect of a bull case for a sub-population for L-BLP25.
However, it is also clear that based on statements made on the December 19th plummet, the sub-population's bull case was likely already priced in. This is
Evidence has been turning up in the monthly economic data flow that indicates American industry is slipping, and given that stocks keep rising, it seems nobody is noticing. Your author here has been writing about our shaky economy for several months now, but sector-specific reports released recently show the manufacturing situation seems to be deteriorating even further. At this point, I think it is time investors take heed.
We received three economic data points this week reflecting deterioration in manufacturing and factory production. The monthly Industrial Production Report and two regional manufacturing data points from the very important New York and Philadelphia Federal Reserve Bank regions indicate economic contraction is occurring in the manufacturing sector.
The Industrial Production Report, published by the Federal Reserve this week, showed that industrial production declined by 0.5% in April. It gets worse, though, as the prior month result was also adjusted lower to
Cia Energetica de Minas Gerais (CIG)
Q1 2013 Earnings Call
May 17, 2013 2:00 pm ET
Antônio Carlos Vélez Braga
Luiz Fernando Rolla - Chief Officer of Finance, Investor Relations & Control of Holdings and Member of Executive Board
Maura Galuppo Botelho Martins
Leonardo George De Magalhaes - General Manager and Controller
Paulo Eduardo Pereira Guimarães
Sergio Tamashiro - Itaú Corretora de Valores S.A., Research Division
Vinicius Canheu - Crédit Suisse AG, Research Division
Felipe Leal - BofA Merrill Lynch, Research Division
Antônio Carlos Vélez Braga
Good afternoon, everyone. My name is Antonio Carlos Vélez Braga. I'm Superintendent of Investor Relations of Cemig. We'll begin the video webcast of the first quarter results 2013 with the presence of Luiz Fernando Rolla, CFO; Dr. Maura Galuppo Botelho Martins, Superintendent of Economic Financial Regulation; Leonardo George de Magalhaes, Superintendent of Controlling; and Dr. Paulo Eduardo Pereira Guimaraes, Superintendent of