Sunday, June 29, 2014

GameStop Corp. (GME): Top Pick in Hottest Sectors

Auto, life-insurance and specialty-retailer stocks could be set for a bout of outperformance, according to our analysis of sector and industry charts. The trifecta of potential winners are in what we call the emerging phase where near-term "Buy" signals are in their infancy.

iStock pulled out the trusty stock screener to see which company with the trio of sectors stands out as our favorites based on fundamental and technical analysis.

There are 135 publicly traded companies within the three sub-sectors, based on BigCharts.com's sector constituent breakdown. That might be a reasonable set of holdings for a sizeable mutual fund or ETF, but way too many for a retail investors.

For us, growing the top and bottom line is the minimum requirement for consideration. Of the original list, only 70 are forecasted to grow EPS for the rest of this year and next. Fifty-six are projected to do the same with sales. That cut the list quickly.

[Related -Seven Stocks That Could Outperform In the Year Ahead]

It is important, in our view, for Wall Street analysts to be advocates for the companies under consideration. We've all witnessed the price benefits of upgrades and revisions; only 26 of the 56 have an average recommendation of "Buy" or "Strong Buy."

Although iStock wants Wall Street to rate the candidates highly, paying too much is a no-no in our view. So, we want companies with 2015 earnings growth projections that exceed forward P/E ratios for next year. Well, that didn't do too much, only one gets chopped.

Sticking with our not paying too much meme, how many trade for one times sales or less? Answer: 15.

[Related -GameStop Corp. (GME): GameStop Premiums Reflect Worries]

Warren Buffet prefers, or so we have read, a return-on-equity (ROE) of at least 14%, and the screener says… 6 and all life insurance companies are eliminated. And only three are use based, they include:

CarMax, Inc. (NYSE:KMX) GameStop Corp. (NYSE:GME) Penske Automotive Group, Inc. (NYSE:PAG)

KMX just made a huge, one-day move, toss it aside. Between GME and PAG, iStock prefers the chart of GameStop over Penske automotive; although, both show the potential for more upside.

GameStop operates as a multichannel video game, consumer electronics, and wireless services retailer. The company sells new and pre-owned video game hardware; physical and digital video game software; pre-owned and value video game products.

The specialty-retailer stumbled since hitting its 52-week high $57.47 in the middle of November 2013. Shares look as if they may have bottomed out and our in the process of lost price recovery.

GEM's price recently bounced above the 50-day moving along with the 12 and 26-day averages. This is typically a bullish sign on the short-term. With 32% of GameStop's float (stock available for trading), a short squeeze could propel the stock higher if/when shares close above resistance at $44; perhaps, as high as $50. On the downside, fall below $35 and retest of the 52-week low of $33.10 is highly likely. 

Wednesday, June 25, 2014

Here’s Why Ford Motor Could Gain 40%

Shares of General Motors (GM) and Ford Motor (F) got good news today when Cars.com predicted sales of cars would continue at a more than 16 million annual rate for the remainder of 2014. And there’s more upside to come, at least in Ford.

Getty Images

MKM Partners’ chief market technician Jonathan Krinsky explains why he sees more upside in Ford Motor:

Ford Motor Co. is up over 11% YTD (SPX up 5.5%), and nearly 20% from its lows in January (SPX up 8.7%). While it clearly would have been a much better buy earlier in the year, by our work, the technical picture was rather ambiguous until recently. We now think the stock can be bought, on anticipation of a bigger breakout heading into the heart of the summer…

Ford has been trading above its 200 Day Moving Average for roughly a month, and the 200 DMA has just started to turn higher, a bullish development for the medium-term. On Tuesday, price traded right up to prior resistance in the $17.20 area and stalled. This represented the highs in November 2013, prior to a 16% decline into the January lows. Therefore, it is a logical area to pause, but given favorable momentum, we think it exceeds this resistance in the coming weeks…

We would target $18 over the coming weeks (~5% upside), and $23 – $24 over the next 6-12 months (35-40%).

Krinsky’s one caveat: If Ford can’t hold $16, he “would have to re-consider any bullish thesis.”

Shares of Ford Motor have gained 1.6% to $17.23 at 2:29 p.m., while General Motors has risen 1% to $36.95.

John Bogle, Index Icon, Accused of Timing Market

Was an ETF.com interview on Tuesday with John Bogle some sort of April Fool’s joke?

With all apparent seriousness, the 84-year-old investor famed for the simplicity and parsimony of his stay-the-course indexing approach encourages investors to tactically allocate 15% of their portfolios from stocks to corporate bonds.

And that was enough to provoke a withering critique from market blogger Eric Nelson, an Oklahoma City-based registered investment advisor and principal of Servo Wealth Management.

The first of three main criticisms in the new blog post, “Befuddled by John Bogle’s Advice,” is Bogle’s recommendation that investors increase their risk exposure for what amounts to a mere sliver of higher expected returns.

Nelson faults Bogle for emphasizing the return advantage of corporate bonds relative to low-yield government bonds without mentioning the higher risk.

“A discussion of possible write downs or defaults in corporate bonds… is noticeably absent,” he writes, adding:

“Mentioning the fact that for over 80 years (since 1927), the realized return difference between higher-risk corporate bonds compared to lower-risk government bonds … hasn’t even been 0.5% per year? No mention of that either.”

Nelson also points out that corporate bonds tend to significantly underperform when the stock market declines (so in 2008, for example, corporates lost 3.1% when government bonds were up 12.4%), adding this coup de grace:

“I imagine that is something the market-timing bond investor may want to be reminded of before they decide to reach for that extra 0.5% of potential return.”

Bogle’s reach for yield in fixed income is bitter irony for Nelson, a value-oriented Dimensional Fund Advisors proponent, since Bogle is adamant in his rejection of Nobel Prize winner Eugene Fama’s view that small-cap and value stocks deliver higher expected returns than the plain-vanilla total stock indexes Bogle favors.

But Nelson points out that in that same time period since 1927, value stocks beat a total stock index by more than 2% annually, small-cap stocks did the same, and a combined small-value portfolio outperformed a total stock index by more than 5% per year.

What’s more, Nelson says the same pattern is observed in both developed and emerging markets in recent decades.

“Think you need highly engineered institutional class mutual funds inspired by Fama to achieve those results?” the DFA advisor asks. “$1 invested in Vanguard’s own Small Cap Value Index Fund (VISVX) since its inception in 1998 has grown to almost $4 vs. barely $2 for the Vanguard Total Stock Index fund (VTSMX).”

But while tilting a portfolio for corporate bond crumbs at higher risk yet refusing to reach for more substantial equity returns seems unwise to Nelson, it’s the apparent abandonment of stay-the-course investing that constitutes his third criticism of Bogle’s April 1 interview.

Asked whether investors should protect their gains after a five-year bull market (presumably by exiting the market), Bogle offers a nuanced, or perhaps contradictory, response:

“People aren’t going to know how to do that — it’s market timing," Bogle is quoted as saying. "I’d say, never be out of the stock market. It just makes no sense to me whatsoever. But maybe you can trim taking 15 percentage points off the table or something like that.”

To which Nelson responds:

“A dramatic 15% shift goes well beyond rebalancing into the realm of tactical allocation — making sizable portfolio bets in reaction to past events or based on forecasts about the future,” he writes.

The lesson Nelson learns from the interview with Bogle, whose “cult-like following” has “hundreds of thousands of individual investors hanging on his every word,” is to “trust a philosophy, not a person” who “can easily be swayed by prevailing market sentiments.”

That is why fiduciary advisors typically require their clients to establish investment policy statements (IPS).

“When urges to make changes or follow the crowd present themselves, revisit your IPS and remember that your portfolio is based on your unique goals, objectives and risk tolerance, not off-the-cuff comments or market-timing calls from prominent industry professionals,”  he writes.

Ignore the temptation to “just do something,” his blog concludes.

Reached by ThinkAdvisor, Nelson acknowledged some reluctance to taking on Bogle but for the overriding investment principles at stake:

“I really don't mean to be nit-picky with this stuff, but sticking with a long-term investment plan ain't easy," he said. "And when those we perceive to be pillars of discipline are wavering, suggesting tactical moves and wholesale asset class changes without a full description of the risks involved, I think we need to call them out.  Even if this causes a few of his devout followers to think twice about his advice and think a bit more critically about their own situation, I think it's worthwhile.”

Tuesday, June 24, 2014

FINRA Withdraws Broker Bonus Plan

The Financial Industry Regulatory Authority has withdrawn its proposed rule to require brokers to disclose recruitment compensation paid to them as an incentive to move to a new firm.

However, FINRA said in a Monday statement that although it has withdrawn the proposal, the self-regulator plans to develop a revised proposal and file it with the Securities and Exchange Commission later in the year.

In mid-March, FINRA sent the plan to the SEC for approval. The proposal generated 184 comment letters, and FINRA stated that "due to the rigid timelines imposed by Dodd-Frank by which the SEC must act on a proposal, FINRA did not believe it could fully address the comments within those time frames."

FINRA said in its statement that it continues to believe that former customers would benefit from knowing:

FINRA said that it "intends to carefully consider the comments, continue a dialogue with the commission and file a proposal as soon as practical."

FINRA raised the threshold of payments that would need to be reported. Rule 2243, approved by FINRA’s board last September, was to apply to recruitment compensation — including signing bonuses, up-front or back-end bonuses, loans, accelerated payouts and transition assistance — of $100,000 or more, and to future payments (trade-based or asset-based) contingent on performance criteria.

Earlier last year, FINRA proposed a $50,000 threshold.

“Many of our members have concerns regarding FINRA’s recruitment compensation disclosure proposal, including a lack of transparent cost-benefit analysis,” the Financial Services Institute said in a Monday statement.

In reproposing the rule, FSI said that FINRA should "conduct a thorough cost-benefit analysis of the rule, share the results with the industry and carefully assess the proposal’s impact on firms, financial advisors and investors.”

Industry officials had complained that FINRA's plan would have "a chilling effect" on the movement of registered representatives."

---

Check out FINRA’s Broker Bonus Rule to Have ‘Chilling Effect’ on Recruiting, Advisors Say on ThinkAdvisor.

Monday, June 23, 2014

Pandora Hikes Prices; Spotify Offers a Deal to College Students

pandora.com Having Pandora (P) fish through its growing digital catalog to surprise music buffs with commercial-free tunes is getting more expensive. Pandora recently announced that the price for its Pandora One service will increase by 25 percent to $4.99 a month for new subscribers starting in May. Existing subscribers paying $3.99 a month will be able to continue at that rate, but the $36 a year premium plan will no longer be available. Will You Pay More? Unlike the groaning that followed the hike in Amazon.com's (AMZN) Prime, there has so far been minimal backlash for Pandora. That's because just 3.3 million of Pandora's 75.3 million active listeners pay for Pandora One. The other 72 million accept the ad blocks and the limited skips (Pandora limits free users to skipping six songs in an hour or 24 over the course of a day). Pandora perpetually tweaks its terms and limitations, but this is the first time that it has increased its Pandora One rate since it was introduced in 2009. Compared to satellite radio that has gone through a pair of increases since 2012 and the annual increases of most cable and satellite television providers, it's hard to paint Pandora as greedy. As Pandora explains in justifying the increase, the royalties that it pays to performers through SoundExchange for subscription listening have soared 53 percent over the past five years. Battle of the Bands It's probably just a coincidence that Spotify lowered its price to select users just days after Pandora's announced hike. Spotify announced on Tuesday that college students -- including two-year colleges and vocational schools -- could pay just $5 a month for its streaming service. It doubles to the $10 a month rate that everyone else pays after they graduate. Spotify is an on-demand platform that lets users pick the tracks that they want to hear and create play lists. Pandora is a music discovery service that crunches algorithms to serve up tracks that it thinks you will like based on your initial input and listening habits. However, it's still interesting that the two services will be priced nearly identically for college students, even though the ability to single out tracks among Spotify's millions of selections would be seen by many as superior. A cheaper Spotify for young listeners isn't Pandora's only problem. Apple (AAPL) introduced iTunes Radio in September, and it's a similar music discovery service that is free to use in its ad-supported form. Folks wanting to zap ads on iTunes Radio only need to pay $25 a year for iTunes Match.

2.5 Reasons to Hold On to Texas Instruments' Stock

Texas Instruments (NASDAQ: TXN  ) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers two-and-a-half reasons he's holding on to Texas Instruments' stock despite its substantial rise since he bought those shares a little more than a year ago.

Nine rock-solid dividend stocks you can buy today
Texas Instruments earned its place in the iPIG portfolio in large part because dividend stocks as a group handily outperform their non-dividend-paying brethren.

However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

Sunday, June 22, 2014

11 jurors will weigh ex-Madoff employees' fate

NEW YORK – Deliberations in the trial of five former employees of Ponzi scheme mastermind Bernard Madoff are set to resume Friday after the defense and prosecution agreed to go forward without a juror whose illness stalled the case for three days.

U.S. District Court Judge Laura Taylor Swain approved the decision after the defense team resolved internal disagreement over whether to proceed with 11 jurors — one short of the full complement — or instead recall an alternate who was released before deliberations began Monday.

The jury had deliberated for roughly eight hours when a panel member reported a stomach ailment after lunchtime Tuesday. That forced a halt in the verdict process. She has not returned since, and on Thursday reported suffering what the judge characterized as an additional household accident.

Proceeding with 11 jurors is relatively rare. However, the federal rules of criminal procedure state that a jury may consist of fewer than 12 members if both sides stipulate approval in writing. Once deliberations have begun, the court may permit a jury of 11 to return a verdict without prosecution and defense approval provided that the court finds good cause to excuse one juror.

The agreement will enable the remaining jurors to resume deliberations at the point they stopped — amid reviewing transcripts of testimony by several witnesses, including one of the five former co-workers charged with knowingly aiding the scam.

If attorneys had opted to recall an alternate, jurors would have been legally required to disregard the their previous deliberations and re-start the decision-making process anew.

The illness and legal dilemma it spawned added an unexpected twist and delay to the five-month trial, already one of the longest white-collar crime proceedings in Manhattan federal court history.

Jurors heard testimony from more than 40 witnesses and saw dozens of exhibits in the case focused on charges the defendants knowingly conspired in and and profited ! from the fraud that stole an estimated $20 billion from thousands of investors worldwide.

The trial is the first Madoff-related criminal proceeding to be weighed by a jury. The disgraced financier pleaded guilty without standing trial after the scam imploded in December 2008. He's now serving a 150-year prison term.

The former co-workers face decades behind bars if they're convicted. They include former Madoff operations manager Daniel Bonventre; Annette Bongiorno, who managed investment accounts for her boss' most important customers; JoAnn Crupi, who had day-to-day oversight of the firm's largest bank account; and ex-Madoff computer programmers George Perez and Jerome O'Hara.

Saturday, June 21, 2014

Hot Diversified Bank Companies To Watch In Right Now

Anybody who was lucky enough to get into a Recon Technology, Ltd. (NASDAQ:RCON) position before October 7th, then congratulations - you're up big-time. Now get out. Instead, a better use of that capital is Mitek Systems, Inc. (NASDAQ:MITK). While RCON is overbought and ripe for a pullback, MITK is itching to stage a breakout.

The outlooks for both stocks won't be particularly well-received ... especially for Recon Technology, which has become one of the market's most-loved darlings since late last month, with shares rallying as much as 140% since the end of September. The weight of those gains is starting to take a toll now. As for Mitek Systems, while suggesting it is a buy won't create any ire, traders are probably aware it's been weak since June, and stuck in a range since July. The explanation for both calls is, nothing lasts forever.

Hot Diversified Bank Companies To Watch In Right Now: Central Garden & Pet Company(CENT)

Central Garden & Pet Company produces and sells products for the pet, and lawn and garden supplies industries primarily in the United States. The company?s pet supplies products comprise products for dogs and cats, including edible bones, premium healthy edible and non-edible chews, dog and cat food and treats, leashes, collars, toys, pet carriers, grooming supplies, and other accessories; products for birds, small animals, and specialty pets, such as food, cages and habitats, toys, chews, and related accessories; animal and household health, and insect control products; products for fish, reptiles, and other aquarium-based pets comprising aquariums, furniture and lighting fixtures, pumps, filters, water conditioners, food and supplements, and information and knowledge resources; and products for horses and livestock. It sells its pet supplies products under the Adams, Altosid, Aqueon, Avoderm, BioSpot, Breeder?s Choice, Coralife, Farnam, Four Paws, Interpet, Kaytee, Ken t Marine, Nylabone, Oceanic Systems, Pet Select, Pre-Strike, Pinnacle, Super Pet, TFH, Zilla, and Zodiac brand names. The company?s lawn and garden supplies products include grass seed; wild bird feed, bird feeders, bird houses, and other birding accessories; weed, grass, ant and other herbicide, insecticide, and pesticide products; and decorative outdoor lifestyle and lighting products, such as pottery, trellises and other wood products, and holiday lighting products. It offers its lawn and garden supplies products under the AMDRO, GKI/Bethlehem Lighting, Grant?s, Ironite, Lilly Miller, Matthews Four Seasons, New England Pottery, Norcal Pottery, Pennington, Over?n Out, Sevin, Smart Seed, and The Rebels brand names. It sells its products principally to independent pet and garden distributors, national and regional retail chains, grocery stores, mass merchants, home improvement centers, nurseries, and garden supply retailers. The company was founded in 1955 and is based in Walnut Creek, California.

Advisors' Opinion:
  • [By Sean Williams]

    Green paw
    The month of May has been one to forget for shareholders of Central Garden & Pet (NASDAQ: CENT  ) (NASDAQ: CENTA  ) . The maker of pet products as well as seeds and herbicides for lawn care tumbled after it missed Wall Street's earnings estimates for a second straight quarter. The biggest downside pressure came from its lawn care segment, which saw expenses rise as fertilizer margins fell. However, now could be the time to consider jumping on board this interesting pet/lawn care hybrid company, as it has the potential to unlock shareholder value in a number of ways.

  • [By Seth Jayson]

    Calling all cash flows
    When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Central Garden & Pet (Nasdaq: CENT  ) , whose recent revenue and earnings are plotted below.

Hot Diversified Bank Companies To Watch In Right Now: Cutera Inc. (CUTR)

Cutera, Inc., a medical device company, engages in the research, design, development, manufacture, marketing, sale, and service of laser and other energy based aesthetics systems for practitioners worldwide. The company offers a range of non-invasive laser and intense pulsed light products for use in the treatment of cosmetic vascular conditions, hair removal, vascular lesions, skin rejuvenation, onychomycosis or toenail fungus, pigmented lesions, laser skin toning, tattoo removal, cutaneous lesions, fine wrinkles, diffuse redness, rosacea, skin texture, and pore size, as well as for non-invasive body contouring applications. It primarily serves plastic surgeons, dermatologists, gynecologists, primary care physicians, family practitioners, physicians offering aesthetic treatments in non-medical offices, podiatrists, and other qualified practitioners. The company sells and markets its products through its direct sales force and distributors, as well as sells hand piece refi lls through the Internet. Cutera, Inc. was founded in 1998 and is headquartered in Brisbane, California.

Advisors' Opinion:
  • [By John Udovich]

    Large cap serial acquirer�Valeant Pharmaceuticals International Inc (NYSE: VRX) is teaming up with activist investor�Bill Ackman to pursue large cap Botox maker Allergan, Inc (NYSE: AGN), but stocks like Cutera, Inc (NASDAQ: CUTR), Cynosure, Inc (NASDAQ: CYNO), PhotoMedex Inc (NASDAQ: PHMD) and Syneron Medical Ltd (NASDAQ: ELOS)�actually offer investors more exposure to the growing anti aging and aesthetics market (Note: See my recent article: These Small Caps Seek to Treat Your Crow�� Feet and Double Chin (RVNC & KYTH)). To begin with, Valeant Pharmaceuticals International has a wide focus on neurology, dermatology and infectious diseases�but acquiring the maker of Botox won�� be its first foray into the aesthetic market�because earlier this year, the company completed its acquisition of Solta Medical Inc (NASDAQ: SLTM) -�a designer, developer, manufacturer and marketer of�energy-based medical device systems for aesthetic applications.�And while�Allergan, Inc may be most well known for Botox, its actually a pretty big�company focused on a diverse range of areas, including ophthalmic pharmaceuticals, dermatology, neuroscience, urology and cosmetics���meaning the following stocks offer investors better exposure to the aesthetics market:

Best Energy Stocks To Watch Right Now: ZELTIQ Aesthetics Inc (ZLTQ)

ZELTIQ Aesthetics, Inc. (ZELTIQ), incorporated on March 22, 2005, is a medical technology company. The Company is focused on developing and commercializing products utilizing its controlled-cooling technology platform. Its commercial product is the CoolSculpting System that reduces stubborn fat bulges. The Company generates revenues from capital sales of its CoolSculpting System and from procedure fees its physician customers pay for each CoolSculpting procedure they perform. As of March 31, 2011, it had an installed base of 346 and 475 CoolSculpting Systems worldwide and over 88,000 CoolSculpting procedures had been sold to its physician customers. The Company markets CoolSculpting to the dermatologists, plastic surgeons, and aesthetic specialists. As of March 31, 2011, ZELTIQ�� North American direct sales force consisted of 23 professionals, and over 88,000 CoolSculpting procedures were sold to ZELTIQ�� physician customers.

CoolSculpting System

ZELTIQ generates revenues from capital sales of its CoolSculpting System and from procedure fees its physician customers pay for each CoolSculpting procedure they perform. Capital sales of ZELTIQ�� CoolSculpting System include the CoolSculpting control unit and its CoolSculpting vacuum applicators. ZELTIQ generates procedure fees through sales of CoolSculpting procedure packs, which include its consumable gelpads and liners and a disposable computer cartridge that it markets as the CoolCard. The CoolCard contains enabling software that permits its physician customer to perform a fixed number of CoolSculpting procedures.

The CoolSculpting control unit is the base of the CoolSculpting System. ZELTIQ�� CoolSculpting control unit also contains software that tracks and collects data about each procedure performed and any error messages that may be generated during the procedure. CoolSculpting System includes three CoolSculpting vacuum applicators. ZELTIQ�� CoolSculpting procedure packs facilitate the pay-per-procedu! re feature of its CoolSculpting System. Its CoolSculpting procedure packs include CoolCard and its consumable gelpads and liners.

Advisors' Opinion:
  • [By John Udovich]

    On Tuesday, small cap biotech stock Kythera Biopharmaceuticals Inc (NASDAQ: KYTH) surged around 25% after announcing that its ATX-101 REFINE-1 and REFINE-2 Phase III trials met all primary and secondary endpoints for the reduction of so-called double chins; but if investors missed out on that rally, small caps Zeltiq Aesthetics Inc (NASDAQ: ZLTQ), Solta Medical Inc (NASDAQ: SLTM) and Cynosure, Inc (NASDAQ: CYNO) each have a piece of the aesthetic market as well. In the case of Kythera Biopharmaceuticals, its ATX-101 can be injected to deal with double chins���meaning its less invasive than liposuction as the drug dissolves fat cells but leaves other tissue alone. JP Morgan has noted:

Hot Diversified Bank Companies To Watch In Right Now: Sino-Global Shipping America Ltd.(SINO)

Sino-Global Shipping America, Ltd., through its subsidiaries, provides shipping agency services for foreign ships coming to and departing from Chinese ports. Its services include preparing documents, husbanding vessels, working through customs issues, coordinating matters with port authorities, overseeing and settling cargo claims, tracking shipments, recommending trucking, warehousing, and complementary services. The company offers these services for bulk and break-bulk general cargo, and vehicle transport, as well as raw materials, such as crude oil, oil products, iron, manganese, and other metal ores in 76 ports in the People?s Republic of China. Sino-Global Shipping America, Ltd. was founded in 2001 and is based in Flushing, Virginia.

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

    The recent strength from Sino-Global Shipping America, Ltd. (NASDAQ:SINO) and the now-renewed strength from Safe Bulkers, Inc. (NYSE:SB) would suggest those two stocks are among the very best ways to play the rebound currently unfurling in the shipping sector. And to be fair, both are fine companies in their own right. The top play in the dry goods maritime shipping arena, however, may well be Diana Shipping Inc. (NYSE:DSX). No, DSX isn't one of the fun and exciting small caps in the maritime shipping space. But, there's a lot to be said for size and stability, which SB and SINO can't offer.

Hot Diversified Bank Companies To Watch In Right Now: Lockheed Martin Corporation(LMT)

Lockheed Martin Corporation engages in the research, design, development, manufacture, integration, operation, and sustainment of advanced technology systems and products in the areas of defense, space, intelligence, homeland security, and government information technology in the United States and internationally. It also provides management, engineering, technical, scientific, logistic, and information services. The company operates in four segments: Aeronautics, Electronic Systems, Information Systems & Global Services (IS&GS), and Space Systems. The Aeronautics segment offers military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. Its products and programs comprise the F-35 multi-role, stealth fighter; the F-22 air dominance and multi-mission stealth fighter; the F-16 multi-role fighter; the C-130J tactical transport aircraft; and the C-5M strategic airlifter modernization program; and support for the P-3 maritime patrol aircraft, and the U-2 high-altitude reconnaissance aircraft. The Electronic Systems segment provides air and missile defense; tactical missiles; weapon fire control systems; surface ship and submarine combat systems; anti-submarine and undersea warfare systems; land, sea-based, and airborne radars; surveillance and reconnaissance systems; simulation and training systems; and integrated logistics and sustainment services. The IS&GS segment offers information technology solutions and advanced technology primarily in the areas of software and systems integration for space, air, and ground systems to various defense and civil government agencies. The Space Systems segment provides government and commercial satellites; strategic and defensive missile systems, including missile defense technologies and systems, and fleet ballistic missiles; and space transportation systems. Lockheed Martin Corporation was founded in 1909 and is based in Bethesda, Maryland.

Advisors' Opinion:
  • [By Victor Selva]

    Competitors such as AEP Industries Inc. (AEPI) and Lockheed Martin Corporation (LMT) will be better options in term of ROE.

    Final Comment

Hot Diversified Bank Companies To Watch In Right Now: Open Text Corporation (OTEX)

Open Text Corporation develops, markets, sells, licenses, and supports enterprise content management (ECM) solutions primarily in North America and Europe. The company?s ECM software and solutions enable customers to manage various types of enterprise content, including business documents, Web content, records, digital assets, email, forms and reports, forums, blogs, wikis, and real time instant messaging and collaboration. Its ECM solutions comprise various components, including document management, which provides repository for business documents, such as Microsoft office, CAD, and PDF; collaboration that offers tools designed to better facilitate people working with each other with content and processes; Web content management, which provides tools for authoring, maintaining, and administering sophisticated Web sites; and records management that enables control of the lifecycle of content objects by associating robust retention and disposition rules with each content as set. The company?s ECM solutions also provide email management services designed to enable the archiving, control, and monitoring of email; capture and delivery tools that provide the means of converting documents from analog sources; digital asset management; business process management services; content reporting tools for analyzing content and generating reports; and Open Text Everywhere that allows the Open Text ECM suite to be available via mobile devices. In addition, it offers industry specific solutions for government, technology/manufacturing, energy, financial services, pharmaceutical and life sciences, legal, and media sectors. Additionally, the company provides learning, consulting, hosting, and customer support and training services. It has strategic alliances with Microsoft Corporation, Oracle Corporation, and SAP AG. The company was founded in 1991 and is headquartered in Waterloo, Canada.

Advisors' Opinion:
  • [By Seth Jayson]

    OpenText (Nasdaq: OTEX  ) is expected to report Q3 earnings on April 24. Here's what Wall Street wants to see:

    The 10-second takeaway
    Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict OpenText's revenues will grow 18.1% and EPS will grow 28.7%.

Hot Diversified Bank Companies To Watch In Right Now: CytRx Corporation(CYTR)

CytRx Corporation, a biopharmaceutical research and development company, engages in the development of human therapeutics, specializing in oncology. Its drug development pipeline includes INNO-206, which is in Phase II clinical trials for the treatment of soft tissue sarcomas and is in Phase Ib/2 clinical trials for the treatment of solid tumors; and tamibarotene that is in Phase II clinical trials for the treatment of non-small-cell lung cancer and acute promyelocytic leukemia. The company also develops Bafetinib, which is in Phase II clinical trials for the treatment of B-cell chronic lymphocytic leukemia and advanced prostate cancer, as well as in pharmacokinetic clinical trial for brain cancer. CytRx Corporation was founded in 1985 and is headquartered in Los Angeles, California.

Advisors' Opinion:
  • [By Lauren Pollock]

    Biopharmaceutical development company CytRx Corp.(CYTR) and early-stage diagnostics company Cancer Genetics Inc.(CGIX) separately disclosed plans to sell stock. CytRx, whose offering of 10 million shares priced at an 18% discount, is aiming to raise money to fund its clinical trials, while Cancer Genetics wants to hire more sales and marketing personnel, as well as fund research and development. CytRx dropped, while Cancer Genetics fell.

  • [By Bryan Murphy]

    Just for the record, not all my stock picks are great ones. Most are pretty good, some are just so-so, and every now and then they may even be spectacularly bad. Two of the recent ones, however, are looking like they're falling right into place... InterCloud Systems Inc. (NASDAQ:ICLD) and CytRx Corporation (NASDAQ:CYTR). If you didn't catch the first write-ups or weren't sure about CYTR or ICLD at the time, both budding moves are looking even more likely today.

  • [By James Johnson]

    CytRx Corporation's (NASDAQ: CYTR  ) oncology drug, aldoxorubicin, an improved version of the chemotherapeutic agent doxorubicin, recently received FDA approval to extend the dosing in a Phase 3 clinical trial. This trial is evaluating aldoxorubicin as a second-line treatment for soft-tissue sarcomas (STS). In April 2013, the FDA granted Special Protocol Assessment (SPA) to aldoxorubicin as a second-line treatment for STS with a maximum dosing of six cycles. The drug is given by a 30 minute IV infusion once every three weeks which is one cycle. The extension of the treatment cycle was based on aldoxorubicin's superior cardiac safety and efficacy profile compared to doxorubicin in prior studies. Aldoxorubicin was found to be safer than doxorubicin, a toxic drug associated with side effects such as cardiovascular events and heart damage in cancer patients. The extended dosing could allow CytRx to demonstrate even higher progression-free survival (PFS) efficacy results compared to the Phase 2b trial for advanced STS with this drug. The company plans to initiate the Phase 3 trial during the first quarter of 2014.

10 Best Net Payout Yield Stocks To Invest In 2015

The Dow Chemical Company (DOW) is the largest U.S. chemical maker by sales. It is engaged in manufacturing and supplying products used primarily as raw materials in the manufacture of customer products and services. The company serves the following industries: appliance; automotive; agricultural; building and construction; chemical processing; electronics; furniture; housewares; oil and gas; packaging; paints, coatings and adhesives; personal care; pharmaceutical; processed foods; pulp and paper; textile and carpet; utilities; and water treatment.

In this article, let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment.

Debt Repayments

Last year the company announced the final resolution of the K-Dow arbitration with Petrochemical Industries Company of Kuwait. Dow received a cash payment of $2.2 billion which reflected the full damages awarded by the International Chamber of Commerce. Dow has utilized the payment to de-leverage its balance sheet.

10 Best Net Payout Yield Stocks To Invest In 2015: Orexigen Therapeutics Inc.(OREX)

Orexigen Therapeutics, Inc., a development stage company, focuses on the development of pharmaceutical product candidates for the treatment of obesity. Its lead combination product candidates include Contrave, which has completed phase III clinical trials; and Empatic that has completed phase II clinical trials. Contrave is a combination of two drugs, bupropion and naltrexone, in a sustained release formulation (SR). Bupropion is an antidepressant and smoking cessation medication; and naltrexone is a treatment for alcohol and opioid addiction. The company?s Empatic product candidate is a combination of bupropion SR and zonisamide SR. Zonisamide is for the adjunctive treatment of partial seizures, a form of epilepsy. The company has a collaboration agreement with Takeda Pharmaceutical Company Limited to develop and commercialize Contrave. Orexigen Therapeutics, Inc. was founded in 2002 and is based in La Jolla, California.

Advisors' Opinion:
  • [By Ben Levisohn]

    Vivus (VVUS) has gained 4.3% to $10.63 after Cowen upgraded it to Outperform from Hold, and Orexigen Therapeutics (OREX) rose 4% to $6.30 after Cowen started it as Outperform.

10 Best Net Payout Yield Stocks To Invest In 2015: TrueBlue Inc.(TBI)

TrueBlue, Inc. provides temporary blue-collar staffing services in the United States. It supplies on demand general labor to various industries under the Labor Ready brand; skilled labor to manufacturing and logistics industries under the Spartan Staffing brand; and trades people for commercial, industrial, and residential construction, and building and plant maintenance industries under the CLP Resources brand. The company also provides mechanics and technicians to the aviation maintenance, repair and overhaul, aerospace manufacturing, and assembly industries, as well as to other transportation industries under the Plane Techs brand; and temporary drivers to the transportation and distribution industries under the Centerline brand. It primarily serves small and medium-size businesses. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington.

Advisors' Opinion:
  • [By Jonathan Yates]

    Even though the stock market rallied on Federal Reserve Chairman Ben Bernanke's remarks with the Dow Jones Industrial Average (NYSE: DIA) and Standard & Poor's 500 Index (NYSE: SPY) surging, the long term winners will be stocks in the staffing industry such as Paychex(NASDAQ: PAYX), TrueBlue (NYSE: TBI), Robert Half (NYSE: RHI), and Labor SMART (OTCBB: LTNC).

  • [By Jonathan Yates]

    When looking at small cap stocks, it is useful to compare the company with others that have expanded in both share price and size. For those considering investing in the $100 billion staffing industry, the growth of TrueBlue (NYSE: TBI) shows what could be the potential path for Labor SMART (OTCBB: LTNC), as both operate in the $29 billion demand labor sector. Other firms have done well in the staffing industry include Paychex (NASDAQ: PAYX) and ManPower Group (NYSE: MAN).

  • [By Jonathan Yates]

    For those looking to invest in real estate stocks, highly recommended is the Dr. Housing Bubble blog. In a recent posting, the "Dr." pointed out that there was a "Lost Generation" when it came to household income. That has not happened for those investing in staffing industry stocks such as Paychex (NASDAQ: PAYX), Robert Half International (NYSE: RHI), TrueBlue, Inc. (NYSE: TBI), and Labor SMART (OTCBB: LTNC).

  • [By Travis Hoium]

    What: Shares of staffing agency TrueBlue (NYSE: TBI  ) jumped 10% today after the company reported earnings.

    So what: Revenue jumped 19%, to $422.3 million, and beat estimates of $420.2 million from Wall Street. Adjusted earnings per share were also up 19%, to $0.31, outpacing estimates by $0.05.�

Top Information Technology Companies To Invest In Right Now: Realogy Holdings Corp (RLGY)

Realogy Holdings Corp., incorporated on December 14, 2006, is an integrated provider of residential real estate services in the United States. The Company is the franchisor of residential real estate brokerages with some of the recognized brands in the real estate industry, the owner of United States residential real estate brokerage offices, the global provider of outsourced employee relocation services and a provider of title and settlement services. The Company's operating platform is supported by the Company's portfolio of industry franchise brokerage brands, including Century 21 , Coldwell Banker , Coldwell Banker Commercial , ERA , Sotheby's International Realty and Better Homes and Gardens Real Estate and the Company also owns and operates the Corcoran Group and CitiHabitats brands. In October 2013, Realogy Holdings Corp's Coldwell Banker Residential Real Estate LLC announced that it has acquired the assets of Coldwell Banker Cocoa Beach Realty's two offices in Cocoa Beach, Fla. In October 2013, Realogy Holdings Corp's NRT LLC announced the acquisition of Frank Howard Allen Realtors Company-owned operations in Northern California.

The Company operates in four segments: Real Estate Franchise Services (RFG), Company Owned Real Estate Brokerage Services (NRT), Relocation Services (Cartus) and Title and Settlement Services (TRG).As of December 31, 2012 , the Company's franchise systems had approximately 13,600 franchised and company owned offices and 238,900 independent sales associates operating under its franchise and brands in the United States and 101 other countries and territories around the world, which includes approximately 710 of its company owned and operated brokerage offices.

Real Estate Franchise Services

The Company is the franchisor of residential real estate brokerages in the world through its portfolio of well known brokerage brands, including Century 21 , Coldwell Banker , Coldwell Banker Commercial , ERA , Sotheby's International Realty an! d Better Homes and Gardens Real Estate. The Company derives substantially all of its real estate franchising revenues from royalty fees received under long-term (typically ten year) franchise agreements with its franchiseesThe Company's franchisees pay the Company fees for the right to operate under one of the Company's trademarks and to enjoy the benefits of the systems and business enhancing tools provided by its real estate franchise operations.

As of December 31, 2012 , the Company's real estate franchise systems had approximately 13,600 offices worldwide in 102 countries and territories, including approximately 6,100 brokerage offices in the United States and approximately 238,900 independent sales associates worldwide (which included approximately 41,300 independent sales agents working with its company owned brokerage offices) including approximately 166,000 sales associates operating under its franchise and brands in the United States, with an average tenure among United States franchisees of approximately 19 years as of December 31, 2012 .

Company Owned Real Estate Brokerage Services

The Company owns and operates the residential real estate brokerage business in the United States under the Coldwell Banker , Sotheby's International Realty , ERA , Corcoran Group and CitiHabitats brand names. The Company offers full-service residential brokerage services through approximately 710 company owned brokerage offices in more than 35 metropolitan areas of the United States. In addition, the Company participates in the mortgage process through its 49.9% ownership of PHH Home Loans LLC (PHH Home Loans), its home mortgage venture with PHH. The Company's home mortgage joint venture with PHH is the recommended provider of mortgages for the Company's real estate brokerage and relocation service customers (unless exclusivity is waived by PHH). The Company also assists landlords and tenants through property management services. In addition, as a full-service real estate br! okerage c! ompany, the Company promotes the complementary services of its relocation and title and settlement services businesses, in addition to PHH Home Loans.

Relocation Services

The Company is a global provider of outsourced employee relocation services. The Company is the provider of such services in the United States and also operates in key international relocation destinations. The Company offers a range of employee relocation services designed to manage all aspects of an employee's move to facilitate a smooth transition in what otherwise may be a complex and difficult process for the employee and employer. The Company's relocation services business serves corporations, including over 64% of the Fortune 50 companies, as well as affinity organizations such as insurance companies and credit unions that provide the Company's services to their members. During the year ended December 31, 2012, the Company assisted in over 158,000 relocations in more than 150 countries for approximately 1,500 active clients and as of December 31, 2012, its top 25 relocation clients had an average tenure of 17 years with the Company.

The Company primarily offers corporate clients employee relocation services, such as homesale assistance, including the evaluation, inspection, purchasing and selling of a transferee's home; the issuance of home equity advances to transferees permitting them to purchase a new home before selling their current home (these advances are generally guaranteed by the client); certain home management services; assistance in locating a new home; and closing on the sale of the old home, generally at the instruction of the client; expense processing, relocation policy counseling, relocation-related accounting, including international assignment compensation services, and other consulting services; arranging household goods moving services, with approximately 72,000 domestic and international shipments in 2012 , and providing support for all aspects of moving a transferee'! s househo! ld goods, including the handling of insurance and claim assistance, invoice auditing and quality control; coordinating visa and immigration support, intercultural and language training, and expatriation/repatriation counseling and destination services, and group move management services providing coordination for moves involving a number of transferees to or from a specific regional area over a short period of time.

Title and Settlement Services

The Company assists with the closing of real estate transactions by providing full-service title and settlement, which is closing and escrow services to customers, real estate companies, including its Company-owned real estate brokerage and relocation services businesses, as well as a targeted channel of financial institution clients, including PHH. In 2012, TRG was involved in the closing of approximately 194,000 transactions of which approximately 54,000 related to NRT. In addition to the Company's own title and settlement services, the Company also coordinates a nationwide network of attorneys, title agents and notaries to service financial institution clients on a national basis. The Company also serves as an underwriter of title insurance policies in connection with residential and commercial real estate transactions. As of December 31, 2012 , the Company had approximately 340 offices, approximately 200 of which are co-located within one of its company owned brokerage offices.

The Company competes with HSF Affiliates LLC, Brookfield Residential Property Services, HomeServices of America, Berkshire Hathaway HomeServices; RE/MAX International, Inc.; and Keller Williams Realty, Inc.

Advisors' Opinion:
  • [By Monica Wolfe]

    Realogy Holdings (RLGY)

    Paulson�� third largest holding goes to Realogy Holdings. The guru holds on to 12,957,700 shares, representing 4.4% of his total portfolio and 8.87% of the company�� shares outstanding.

  • [By Paul Ausick]

    Big Earnings Movers: Kellogg Co. (NYSE: K) is up 0.7% at $62.72 after announcing a restructuring program. CME Group Inc. (NASDAQ: CME) is down 1.2% at $73.77 after reporting earnings this morning. Realogy Holdings Corp. (NYSE: RLGY) is up 7.7% at $43.79.

  • [By Ben Levisohn]

    The IPO has a mixed impact on other real-estate related companies.�Realogy (RLGY) has fallen 0.2% to $43.62, while Vector Group (VGR), which has both tobacco and real-estate brokerage businesses, has dropped 0.5% to $15.99. Zillow�(Z) has jumped 4.1% to $90.44.

10 Best Net Payout Yield Stocks To Invest In 2015: Cache Inc.(CACH)

Cache, Inc., together with its subsidiaries, operates as a mall and Web based specialty retailer of women?s lifestyle sportswear and dresses in the United States. It offers eveningwear; casual and daytime sportswear, including tops, bottoms, and dresses; and accessories, such as jewelry, belts, and handbags under the Cache brand name. The company also provides its products online through its Web site, cache.com. As of March 22, 2012, it operated 267 stores in 43 states, Puerto Rico, and the U.S. Virgin Islands. Cache, Inc. was founded in 1975 and is headquartered in New York, New York.

Advisors' Opinion:
  • [By John Udovich]

    As we head into Black Friday and the holiday shopping season, small cap apparel retail stocks Cache, Inc (NASDAQ: CACH), Stein Mart, Inc (NASDAQ: SMRT), Pacific Sunwear of California, Inc (NASDAQ: PSUN) and Destination XL Group Inc (NASDAQ: DXLG) have the distinction of being the best performing small cap apparel retail stocks for this year (according to Finviz.com) with gains of 111.6%, 92.7%, 88.7% and 65.7%, respectively. What are these high flying small caps doing right in the apparel retail space and will they continue delivering a stellar performance for Black Friday and the all important holiday season for�investors? Here is what new and existing investors and traders alike need to know or consider:

10 Best Net Payout Yield Stocks To Invest In 2015: Petrosonic Energy Inc (PSON)

Petrosonic Energy, Inc, incorporated on June 11, 2008, is a development-stage company. The Company focused on the treatment and upgrading of heavy oil by sonicated solvent de-asphalting. On July 27, 2012, the Company completed the acquisition of 60% ownership in Petrosonic Albania, SHA. from Sonoro.

The Company�� core technology is an industrial scale sonic reactor that transfers sonic energy on an industrial scale to physical, chemical or biological processes. As of December 31, 2012, the Company had not generated any revenue.

Advisors' Opinion:
  • [By Inyoung Hwang]

    Pearson (PSON) jumped 6.2 percent to 1,329 pence, the highest price since May 2001. The media and education company said first-half revenue climbed 7 percent to 2.76 billion pounds ($4.3 billion), surpassing the 2.69 billion-pound average prediction of analysts. Profit fell 26 percent as the company invested in new products.

10 Best Net Payout Yield Stocks To Invest In 2015: Great Northern Iron Ore Properties (GNI)

Great Northern Iron Ore Properties, a conventional nonvoting trust, owns and leases mineral and non-mineral properties on the Mesabi Iron Range in northeastern Minnesota. It owns mineral interests on the Mesabi Iron Range formation that represent 12,033 acres, including approximately 9,895 acres are under lease and 2,138 acres are unleased. The company was founded in 1906 and is based in Saint Paul, Minnesota.

Advisors' Opinion:
  • [By Aaron Levitt]

    PrairieSky won�� actually be drilling for oil or natural gas on its properties, nor will it be transporting it through pipelines. That’s because a�royalty trust is an entity�that own the production rights on oil wells, natural gas fields or, as in the case of Great Northern Iron Ore Properties (GNI),�iron ore mines.

10 Best Net Payout Yield Stocks To Invest In 2015: Amerco (UHAL)

AMERCO, through its subsidiary U-Haul International, Inc., a do-it-yourself moving and storage operator that supplies products and services to help people move and store their household and commercial goods in the United States and Canada. The company engages in the rental of trucks, trailers, specialty rental items, and self-storage spaces primarily to the household mover as well as sales of moving supplies, towing accessories and propane. It also offers eMove, an online marketplace, which connects consumers to independent moving help service providers and independent self-storage affiliates, as well as manages self-storage properties. In addition, the company provides loss adjusting and claims handling services, as well as underwrites moving and storage protection packages, including Safemove and Safetow that provide moving and towing customers with a damage waiver, cargo protection, and medical and life insurance coverage; Safestor, which protects storage customers from loss on their goods in storage; and Super Safemove that offer rental customer with a layer of primary liability protection. Further, it provides life and health insurance products primarily to the senior market through the direct writing or reinsuring of life insurance, medicare supplement, and annuity policies. The company rents its orange and white U-Haul trucks and trailers, as well as offers self-storage rooms through a network of approximately 1,400 company operated retail moving centers and approximately 15,000 independent U-Haul dealers. Its rental fleet consists of approximately 101,000 trucks, 82,000 trailers, and 33,000 towing devices, as well as operates approximately 1,115 self-storage locations in North America, with approximately 411,000 rentable rooms. The company was founded in 1945 and is based in Reno, Nevada.

Advisors' Opinion:
  • [By Rich Smith]

    Given my druthers, were I asked to recommend a truck rental shop today, I think I'd have to go with U-Haul owner AMERCO (NASDAQ: UHAL  ) instead. It's got the free cash flow that Ryder lacks, plus a cheaper P/E, a slightly faster growth rate, and a smaller debt load. Honestly, I don't "love" AMERCO either -- but it's a heck of a better value than Ryder.

10 Best Net Payout Yield Stocks To Invest In 2015: Tennant Company(TNC)

Tennant Company engages in the design, manufacture, and marketing cleaning solutions worldwide. The company offers floor maintenance and outdoor cleaning equipment; chemical-free cleaning technologies; and specialty surface coatings and related products for protecting, repairing, and upgrading floors. Its products are used to clean and coat surfaces in factories, office buildings, parking lots and streets, airports, hospitals, schools, warehouses, shopping centers, and other retail environments. The company also provides parts, consumables, and service maintenance and repair; business solutions, such as pay-for-use offerings, and rental and leasing programs; and cleaning technologies that enhance the performance of its cleaning equipment. In addition, it offers Green Machine 500ze, an electric vacuum street sweeper to clean crowded urban areas. The company serves building service contract cleaners, end-user businesses, healthcare facilities, and schools, as well as local, state, and federal governments through its direct sales and service organization, and authorized distributors. Tennant Company was founded in 1870 and is based in Minneapolis, Minnesota.

Advisors' Opinion:
  • [By Marc Bastow]

    Floor maintenance and cleaning service company Tennant (TNC) raised its quarterly dividend 11% to 20 cents per share payable June 6 to shareholders of record May 30.
    TNC Dividend Yield: 1.29%

  • [By Seth Jayson]

    Tennant (NYSE: TNC  ) reported earnings on April 22. Here are the numbers you need to know.

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

10 Best Net Payout Yield Stocks To Invest In 2015: Covidien PLC (COV)

Covidien Public Limited Company is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. It operates its businesses through three segments: Medical Devices, which includes the development, manufacture and sale of endomechanical instruments, energy devices, soft tissue repair products, vascular products, oximetry and monitoring products, airway and ventilation products; Pharmaceuticals, which includes the development, manufacture and distribution of specialty pharmaceuticals and active pharmaceutical ingredients, and Medical Supplies, SharpSafety products and original equipment manufacturer products. In May 2012, it acquired Newport Medical Instruments, Inc. In May 2012, it acquired superDimension, Ltd. In June 2012, the Company acquired Oridion Systems Ltd. In October 2012, its Mallinckrodt acquired CNS Therapeutics, Inc. In January 2013, the Company acquired CV Ingenuity. Advisors' Opinion:
  • [By Mark Hulbert]

    This past week saw news of another big deal, led by medical-device maker Medtronic�� (MDT) �announcement of its $43 billion bid to acquire rival Covidien (COV)

  • [By John Udovich]

    One way or the other, Merrimack Pharmaceuticals Inc (NASDAQ: MACK), Covidien plc (NYSE: COV), NeoGenomics, Inc (NASDAQ: NEO) and�CollabRx Inc (NASDAQ: CLRX) are targeting Barrett's Esophagus�or�esophageal cancer�(the former often leads to the latter) ��a form of cancer that may not be on the top of your list of cancers but is nevertheless on the rise. Approximately 3 million Americans suffer from Barrett's Esophagus, �a condition that�develops as a result of chronic injury from gastroesophageal reflux disease (GERD) where the�normal esophageal lining is replaced with abnormal cells (known as Barrett�� tissue), putting patients at greater risk of developing cancer of the esophagus. And although less than 1% of these patients develop cancer each year, esophageal carcinoma is frequently not detected until later stages, at which point therapy options are limited, extremely invasive, and often ineffective.�This means that�early detection is important�along with�regular surveillance is recommended.�

10 Best Net Payout Yield Stocks To Invest In 2015: Bottomline Technologies Inc. (EPAY)

Bottomline Technologies (de), Inc. provides cloud-based payment, invoice, and banking solutions to corporations, insurance companies, financial institutions, and banks worldwide. Its solutions are used to streamline, automate, and manage processes and transactions involving global payments, invoice receipt and approval, collections, cash and document management, risk mitigation, reporting, and document archive. The company’s products include cash management and treasury platforms that enable banks to offer ACH and BACS payments, wires, international payments, check production, balance and information reporting, and cash management facilities; and legal spend management solutions, which integrate with claims management, and time and billing systems to automate legal invoice management processes. It also offers Paymode-X, a business-to-business electronic settlement network, such as online access to purchase orders, invoices, payments, and remittance details, as well a s comprehensive workflow and turnkey vendor enrollment and support; and WebSeries and C-Series, the payment and document automation solutions that generate payment instructions along with consolidated bank reporting of cash activity. In addition, the company provides forms management, mobile documentation, workflow automation, and payments solutions to healthcare organizations. Further, it offers SWIFT access service that enables corporations exchange financial information with their banks and counterparties. Additionally, the company provides consulting, project implementation, and training services; and consumable products for laser check printing that comprise magnetic ink character recognition toner and blank-paper check stock, as well as printers and printer-related equipment. Bottomline Technologies (de), Inc. sells its products directly through sales force, as well as through various channel partners and resellers. The company was founded in 1989 and is headquartered in Portsmouth, New Hampshire.

Advisors' Opinion:
  • [By Steve Symington]

    What:�Shares of Bottomline Technologies (NASDAQ: EPAY  ) jumped more than 10% Friday after the cloud-based financial transaction specialist reported solid fiscal first quarter 2013 results.�

  • [By Lisa Levin]

    Bottomline Technologies (de) (NASDAQ: EPAY) shares gained 12.03% to touch a new 52-week high of $35.20 after the company reported upbeat Q1 results.

Apple Inc Prepares to Put Samsung and Google to Shame With Its Upcoming iWatch

Although we're only halfway through the year, 2014 could very well turnout to be the "Year of Apple (NASDAQ: AAPL  ) " in technology circles.

Source: U.S. PTO

Thus far, investors have shown a renewed interest in the world's largest publicly traded company, and for good reason. After issuing its most impressive earnings report in some time, with another likely around the corner, Apple is now pushing full-steam ahead into a second half product launch cycle that should include notable growth drivers like the iPhone 6 and the iWatch.

And speaking of the iWatch, an entirely new set of details have recently emerged that speak to the fact, once again, that Apple is set to raise the bar high in the emerging wearables category.

Inside Apple's iWatch report
On Friday, a story in The Wall Street Journal shed light on several key aspects of Apple's upcoming iWatch that had yet to be discussed. According to the Journal's reporting, the Apple iWatch will come in several different versions, presumably different styles, shapes, and sizes.

This doesn't give investors much in the way of specifics, but Apple investors should still find it encouraging. One of the underappreciated challenges any tech company entering the smartwatch space will have to navigate is that watches are also a fashion accessory, more so than any other major consumer electronics segment to date. In order to win over a mass audience, tech firms like Apple will not only need to create an amazing piece to technology, but also package it in an attractive enough fashion that people will want to wear it. It's a subtle point, but a critical one.

In my mind, the fact that Apple plans to cater to various styles and tastes with the iWatch probably bodes well for its chances at mass adoption. Apple has always excelled at product design, but this could also be a subplot that finally shows where former Yves Saint Laurent Chief Executive Officer and current Apple mystery employee Paul Deneve fits into the iWatch equation as well. That's a bit of plausible speculation, but judging by this new detail the real point is that Apple appears to be keenly aware of the fashion requirements it will need to fulfill with the iWatch..

How many sensors was that?
The Journal report also asserted that Apple's smartwatch design will feature at least 10 integrated sensors that will help Apple achieve a level of biometric and health data monitoring well above what the competition currently offers. This integrated sensor storyline is by no means new, but the fact that Apple plans to pack so many sensors into the iWatch is a new detail to this storyline, and an exciting one at that.

As was the case with the sizes/styles storyline, this new wrinkle also comes up short in the way of specifics, but still helps set a positive expectation for the iWatch. I think it's safe to say that smartwatches have a long way to go to truly fulfill the category's potential, and I've argued plenty of times in recent months that Apple is by far the best suited company to make the kind of "great leap forward" it will require to grow the smartwatch beyond just a niche for enthusiasts. The key here, beyond fashion sensibilities, will be usefulness. And in that regard, the fact that Apple plans to pack 10 or more sensors into the iWatch implies that it has much more than just a heartbeat sensor in store with the iWatch. Again, we don't know what those extra sensors will go toward, but it definitely bodes well for the iWatch clearing the critical usefulness hurdle as well.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Friday, June 20, 2014

Winter thaw: Job gains hotter than forecast

The job market rebounded from a two-month slump in February as employers added 175,000 jobs, while the unemployment rate rose to 6.7% from 6.6%, the Labor Department said Friday.

The report beat most expectations, pumping up stock futures ahead of the market's opening bell.

MARKETS: How stocks are doing

FIRST TAKE: No cheer for bond investors

Economists surveyed by Action Economics estimated that 157,000 jobs were added last month.

Businesses added 162,000 jobs, led by strong increases in professional and business services and education and health care. Federal, state and local governments added 13,000 jobs.

Employment gains for December and January were revised up by a total 25,000. December's were revised to 84,000 from 75,000 and January's to 129,000 from 113,000.

Despite the solid payroll advances, the unemployment rate, which is derived from a different survey, ticked up in part because the labor force rose by 264,000, including previously discouraged workers who resumed their job searches.

Several economists were encouraged that the job gains came despite continuing impacts on payrolls from unseasonably cold and stormy weather. The number of Americans who said they didn't work because of bad weather during the period surveyed by the Labor Department rose sharply.

The economists expect a bounce-back effect in coming months as workers who stayed home because of weather the past three months return to their jobs and hiring picks up after being deferred during snowstorms.

"This report suggests that the underlying momentum in the economy is solid and our feeling is that there is still a significant 'catch-up' payroll report lurking out there in the spring," RDQ Economics said in a research note.

The firm said the job gains are "likely more than enough" to prompt the Federal Reserve to continue to taper its bond-buying stimulus program at a March 18-19 meeting after weak economic data in recent months raised questions about a pullback.

Patrick O'Keefe, former deputy assistant secretary at Labor, is less bullish about the economy. He says other factors, including a slowing of the housing recovery and tepid consumer spending, contributed to soft employment gains in December and January.

"The job market is limping faster," said O'Keefe, who is now director of economic research for Cohn Reznick, an accounting and consulting firm.

Professional and business services led job gains with 79,000. Education and health services added 33,000, though health care added just 9,500 and continues to experience a slowdown as hospitals cut staff, partly in response to lower Medicare reimbursements and the Affordable Care Act. That sector had driven job growth even through the recession.

Leisure and hospitality added 25,000 jobs, and construction and wholesale trade each added 15,000. Manufacturers added just 6,000 at least in part because of the adverse weather.

Some other labor market indicators were mixed. The average workweek dipped to 34.2 hours from 34.3 hours, with the poor weather likely contributing to reduced hours. Average hourly earnings rose nine cents to $24.31.

The number of Americans out of work at least six months rose by 203,000 and those long-term unemployed make up 37% of all of those out of work.

A possible bright spot is that the number of temporary employees increased by 24,000. Companies typically bring on contingent workers before adding to permanent staff.

And a broader measure of distress in the job market that includes part-time employees who prefer full-time jobs and those who've given up looking for work, as well as the unemployed — dipped to 12.6% from 12.7%.

Thursday, June 19, 2014

Tax Breaks for Generous Grandparents

I want to contribute to a 529 account for my 4-month-old granddaughter. Can I get a tax deduction, or is that just for the parents?

See Also: What Grandparents Should Know About Opening 529 Accounts

Yes, grandparents can claim the deduction for contributing to a 529 if they live in one of the 34 states that offer a state income tax deduction for 529 college-savings plan contributions. The only question is whether you must own the account or whether you can contribute to one set up by, say, the child's parents.

About two-thirds of the states that offer a state income tax deduction for 529 college-savings plan contributions let anyone who is a resident of that state take a deduction, even if you don't own the account -- whether you're a parent, relative or friend. The remaining states let you deduct contributions only if you're the account owner. In that case, you might want to open an account for your granddaughter so that you can qualify for the deduction, even if her parents already have an account for her. There's no limit to the number of 529 accounts that can be opened for one beneficiary. (To check up on your state's rules, see Savingforcollege.com.)

In Utah and Virginia, the owner of a 529 account can also deduct the contributions other people make to the account. For example, in Virginia, account owners can deduct up to $4,000 in contributions per account each year, with unlimited carryover of excess contributions, no matter who makes the contributions. And if you're 70 or older, you can deduct the entire amount contributed to the Virginia 529 you own in one year.

Most of the 34 states that offer the tax break let you take a deduction only if you contribute to your own state's 529. However, five states -- Arizona, Kansas, Maine, Missouri and Pennsylvania -- give you the break for contributing to any state's account.

Be careful with withdrawals from a 529 for your granddaughter when she is in college, because they are counted as income in the financial aid calculations. See Limit the Impact of Grandparent-Owned 529 Plans on Financial Aid for details.

For more information, see 529 Plan FAQs.

Got a question? Ask Kim at askkim@kiplinger.com.



Wednesday, June 18, 2014

Morning Movers: Barnes & Noble Bounces on Beat; Boston Beer Bombs on Guidance

Yesterday’s lack of action left stocks within spitting distance of a record high. Can they make a push today?

Reuters

S&P 500 futures have gained 0.1%, while Dow Jones Industrial Average futures have risen 0.1%.

R.R. Donnelley & Sons (RRD) has gained 5.7% to $19.85 after the commercial printing company reported better-than-forecast earnings.

Aeropostale (ARO) has jumped 3.6% to $7.19 after Bloomberg reported that the struggling retailer was working out its options with Barclays assistance.

Dreamworks Animation (DWA) has plunged 11% to $31.49 despite turning a profit after Turbo failed to boost the independent studios earnings.

Boston Beer Co (SAM) has dropped 4.9% to $223.66 after the brewer missed earnings forecasts and said 2014′s profit would be below analyst estimates.

Chicago Bridge & Iron (CBI) has gained 2.7% to $81.70 after the engineering firm trounced earnings forecasts but missed ever so slightly on revenue.

Barnes & Noble (BKS) has gained 3.8% to $18.39 after beating earnings by 26 cents despite sales sliding 10.3%.

Taser International (TASR) has risen 6.1% to $20.26 after the maker of non-lethal weapons reported earnings of 13 cents a share, more than double analyst forecasts.

Hedge Funds Added To Legg Mason Positions

At Holdings Channel, we have reviewed 3,692 13-F filings for the 03/31/2014 reporting period, and looked at the various S&P 500 components held by each of these reporting hedge funds and other 13-F filers. For each component, we totaled the number of shares across across all of these funds. Next Next, we went back to the 12/31/2013 period, and went through the same exercise for each of those 3,692 hedge funds. By comparing the same group across the two periods, we can see which S&P 500 components, in the aggregate, these particular hedge funds have been buying and selling.

Click here to find out 10 S&P 500 Components Hedge Funds Are Buying »

One of the components that stands out with notable buying, is Legg Mason (NYSE: LM). Legg Mason is a global asset management firm with $686 billion in assets under management as of May 31, 2014. The Company provides active asset management in many major investment centers throughout the world.

We should point out before going any further, that 13-F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13-F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.

However, we believe that looking at groups of 13-F filings can be an interesting exercise, especially when comparing one holding period to another. So, let's take a look at the change in LM positions across that group of 3,692 funds we have looked at that have filed for the 03/31/2014 period, versus back at their 12/31/2013 report. We found that between these two periods, hedge funds increased their holdings by 7,604,520 shares in the aggregate, from 99,326,367 up to 106,930,887 for a share count increase of approximately 7.66%.

The overall top three funds holding LM on 03/31/2014 were:

Tuesday, June 17, 2014

Who's Getting Rich from the Alibaba Deal

The Alibaba IPO is expected to be one of the largest IPOs of all time, and some forecasts indicate that the Chinese e-commerce firm could raise as much as $20 billion in its initial public offering.

Alibaba IPOSome reports indicate that the Alibaba IPO date could be scheduled for the first week in August, but no official date has been set.

One thing is for certain, however: When Alibaba hits the market sometime in late 2014, there will be a lot of people who pocket a lot of profit.

Those following the deal have learned about the huge windfall Yahoo Inc. (Nasdaq: YHOO) is expecting through the Alibaba IPO. Yahoo owns a 24% stake in Alibaba and is expected to sell up to 50% of that stake through the initial public offering. Considering some estimates place Alibaba's value over $150 billion, Yahoo could walk away with an extra $18 billion in cash.

But Yahoo isn't the only one who will be hitting it big thanks to the Alibaba IPO. Here's who else is in line for a major payday.

$400 Million Payday for Alibaba IPO Underwriters

When companies hold initial public offerings, they hire big banks to perform the underwriting services on the deal. The underwriters help the company determine the IPO price, file the necessary paperwork, choose the right exchange, and issue shares, among other tasks.

These underwriters collect a fee for their services, which is proportional to the size of the IPO.

According to the Financial Times, the underwriters of the Alibaba IPO will be entitled to $400 million in fees, if the IPO raises the $20 billion many expect.

That $400 million will be split among the underwriting companies: Credit Suisse Group (NYSE ADR: CS), Morgan Stanley (NYSE: MS), JPMorgan Chase & Co. (NYSE:
JPM), Deutsche Bank AG (NYSE: DB), Goldman Sachs Group Inc. (NYSE: GS), and Citigroup Inc. (NYSE: C), leaving each bank with more than $66 million in fees.

But the money doesn't necessarily stop there for the underwriters...

When underwriters think an IPO might be oversubscribed (higher demand for shares than there is supply), they are allowed to purchase up to an additional 15% of the stock at the initial offer price. From there, they can sell the shares at a higher price following the IPO in what is known as a "Greenshoe" clause.

The underwriters who would like to purchase additional stock before the IPO takes place will be able to, so they'll see a nice payday after the Alibaba stock price climbs following the IPO.

For those six banks, the $66 million they receive in fees may be just the tip of the iceberg.

But the underwriters aren't the only ones who will make money off the Alibaba IPO...

Alibaba Prepares Employees for Payout

According to Reuters, Alibaba officials have been preparing employees for the influx of cash they will receive when the company hits the market.

Alibaba employees currently hold 26.7% of the company's shares, a value that could be worth as much as $41 billion. A recent Reuters survey of 25 analysts concluded that Alibaba could be valued at $152 billion at the time of its IPO.

Following the IPO, shareholding employees will be free to sell their Alibaba stock whenever they choose.

Alibaba has been preparing employees for years for the eventual IPO windfall and advising them not to spend excessive amounts of money on material goods. However, that hasn't stopped some employees from inquiring if luxury cars, like BMWs, can be ordered in Alibaba's signature orange hue.

While the size of the Alibaba IPO could be unprecedented, this won't be the first time Alibaba employees will have had the opportunity to sell shares. The company has previously allowed workers to sell parts of their stakes through structured "liquidity programs."

But the biggest profits don't have to go solely to Alibaba employees and big banks. In fact, your gains could exceed those of the IPO's original investors...

That's because we've uncovered a way for you to make a fortune on the Alibaba deal right now... long before the shares go public. It could be your one and only chance to make the kind of gains normally reserved for the high-net-worth investors and bankers. You can learn more about this Alibaba profit play here.

Do you plan on investing in Alibaba stock after it hits the market? Join the conversation on Twitter @moneymorning using #Alibaba.

John Wiley & Sons Inc Beats Q4 Estimates; Guides FY2015 (JW-A)

John Wiley & Sons (JW-A) reported its fourth quarter earnings before the opening bell this morning, posting results that beat analysts’ estimates.

JW-A’s Earnings in Brief

John Wiley & Sons reported fourth quarter revenues of $457 million, up from 2% (on a constant currency basis) from $441 million reported last year. Adjusted EPS for the quarter came in at 77 cents, up 4% (on a constant currency basis) from last year’s Q4 EPS of 71 cents. JW-A’s results beat analysts’ estimates of 71 cents EPS on revenues of $441 million. For the full-year, John Wiley reported EPS of $3.05 on revenues of $1.78 billion. Looking ahead to next year, John Wiley sees FY2015 EPS in the range of $3.25 to $3.35.

CEO Commentary

Wiley president and CEO Steve Smith had the following comments about the company’s Q4 and full-year results: "We are very pleased with our operational performance this year, including our continued progress in expanding Wiley's depth and breadth as a provider of knowledge-enabled solutions. We exceeded our annual guidance for adjusted revenue growth and earnings, successfully executed on our restructuring plans to achieve a lower and more flexible cost structure, and recently acquired two companies that position Wiley to become a solutions leader in professional learning and development.  Our share of revenue from print books is down to 29%, and through organic investment and targeted acquisitions, and by integrating content, technology, and services, we have accelerated our strategy to provide professionals, students, and researchers with valued solutions that serve their needs from education through employment."

JW-A’s Dividend

John Wiley & Sons did not mention a change to its dividend in its earnings release, but we expect the company to announce an increase to its dividend in the coming weeks.

Stock Performance

John Wiley stock was inactive in pre-market trading. YTD, the company’s stock is up 5.58%.

JW-A Dividend Snapshot

As of Market Close on June 16, 2014

WMT dividend yield annual payout payout ratio dividend growth

Click here to see the complete history of JW-A dividends.

Monday, June 16, 2014

3 Big Stocks on Traders' Radars

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

>>5 Stocks Poised for Breakouts

From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

>>5 Huge Stocks to Trade for Huge Gains

These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. And when there's a big catalyst, there's often a trading opportunity.

Without further ado, here's a look at today's stocks.

OpenTable


Nearest Resistance: $105

Nearest Support: $103

Catalyst: Acquisition

News hit at the open on Friday that OpenTable (OPEN) was getting acquired by travel site Priceline (PCLN) for $103 per share in cash, a $2.6 billion valuation that represents a 46% premium over where OPEN closed on Thursday. The acquisition news is a big win for OpenTable shareholders, but late-to-the-game investors might as well move on. The money has already been made on this deal.

Yelp


Nearest Resistance: $100

Nearest Support: $70

Catalyst: OpenTable Sympathy Move

Online service rating site Yelp (YELP) got a boost from the competition on Friday, rallying close to 14% in the wake of OpenTable's acquisition news. Yelp buyers bid shares up hoping for a similar valuation to potentially get placed on YELP if a suitor were involved in a buyout. But Friday's rally wasn't the first sign of additional upside in Yelp.

That's because this stock has been forming an inverse head and shoulders bottom setup for the last two months, triggering a buy signal at the open on Friday. That move clears the way for another test of resistance at $100, a level that acted like a major price ceiling as recently as March. If you decide to buy here, keep a tight stop in place.

International Game Technology


Nearest Resistance: $16

Nearest Support: $14.50

Catalyst: Acquisition Rumors

The rumor mill is fueling upside in International Game Technology (IGT) from last week. Shares of the $4 billion slot machine maker rallied close to 11% on Friday following news that two firms were competing in a bidding war to acquire IGT. That's a follow-up from Monday, when reports surfaced that IGT had hired Morgan Stanley (MS) to help facilitate a sale.

From a technical standpoint, IGT's downtrend is clearly kaput, but there's still a lot of event risk in this name thanks to the implications that come alongside an acquisition. This isn't a trade for the risk-averse, but a breakout above $16 is an important signal that sellers are on the retreat.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.


RELATED LINKS:



>>5 Toxic Stocks You Should Sell This Summer



>>5 Stocks Under $10 Set to Soar



>>5 Stocks Insiders Love Right Now

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji


Market Wrap-up for Feb 7 – Jumping the Gun

This week, Wall Street saw a slew of disappointing reports, fueling investor speculation about the pace of both domestic and global economic growth. On Monday, ISM manufacturing for January fell to its lowest figure since May. Adding to concerns, labor figures came in well below expectations for both weekly jobless claims and ADP’s private sector jobs report. And for the individual investor, 2014′s rocky start has understandably shaken confidence.

Cause for Concern?

This year, volatility has managed to creep its way back into the markets; and since volatility was essentially non-existent in 2013, many investors have been somewhat “spooked” by its return. Investors must realize that the global economy is currently entering a transition period that the market has never really seen before.

The Fed is slowly making its way out of the market, reducing its unprecedented bond/mortgage purchasing program. This in itself will no doubt create some volatility in the markets both at home and abroad, as investors weigh the consequences of the central bank’s actions. Furthermore, markets will have to adjust to a “post-taper” world, where hopefully fundamentals will once again help clear the noise.

In the short run, investors must be able to look past the spikes and drops on Wall Street. Though markets will likely see several more disappointing reports in the near future, it is important to remember that given the current economic landscape, recent bad data is not bad enough to change the overriding narrative of growth. Bottom line: Stick to the fundamentals before jumping the gun.

Be sure to check the Dividend Daily for all the latest earnings reports, analyst moves, and much more.

Looking Toward Next Week

Next week, investors will once again see a slew of economic and earnings reports. On Tuesday and Thursday Fed Chairwoman Janet Yellen will testify on the semiannual monetary policy report before the House Financial Services Committee. Retail and core retail sales will be reported on Thursday, while preliminary UoM consumer sentiment data is slated to be announced on Friday.

On the earnings front, CVS Caremark (CVS) will kick off the week. On Wednesday, Thomson Reuters (TRI), Mondelez International (MDLZ

Jury deliberations begin in Martoma trial

NEW YORK — A Manhattan federal court jury began deliberations in the insider trading case against former SAC Capital portfolio manager Mathew Martoma Tuesday after hearing nearly two hours of instructions on the law.

U.S. District Court Judge Paul Gardephe instructed the seven women-five men jury on the elements of the three charges against Martoma: conspiracy and two counts of securities fraud.

Martoma family members and friends hugged one another as they left the courtroom after the start of deliberations while Martoma's wife, Rosemary, wiped away tears.

Martoma is charged with secretly obtaining material, non-public information about clinical tests of an experimental drug for Alzheimer's disease, and then illegally using the data for lucrative trading in shares of the pharmaceutical firms Elan and Wyeth that were developing the drug.

EARLIER: Lawyers spar in closing arguments

Prosecutors alleged that knowledge helped SAC Capital reap $276 million in profits and avoided losses on the stocks of Elan and Wyeth before bad news about the clinical trials became public knowledge.

In a closing argument Monday, Martoma's defense lawyer, Richard Strassberg, contended Martoma, 39, was wrongfully charged as part of the government's efforts to get incriminating information against Steven Cohen, SAC Capital's billionaire founder and chief. Cohen has not been charged.

The hedge fund pleaded guilty to criminal insider-trading charges in a $1.8 billion November settlement with the Department of Justice that included termination of SAC Capital trading for outsiders.

Martoma did not testify in his own defense. He is among eight current or former SAC Capital employees who have been charged with insider trading.

Sunday, June 15, 2014

Ford workers to get record $8,800 profit share checks

ford assembly line workers

Ford said it will pay an average of $8,800 to about 47,000 hourly U.S. workers, up about $500 from last year.

NEW YORK (CNNMoney) Ford Motor will pay record profit sharing checks to United Auto Workers members after posting record profits in North America.

Ford (F, Fortune 500)said it will pay an average of $8,800 to about 47,000 hourly U.S. workers, up about $500 from last year.

The company agreed to more generous profit sharing in the most recent labor agreement; in return, veteran workers gave up an increase in their hourly pay rate. Ford also agreed to hire more workers and has increased the number of hourly workers by 6,000 over the last two years.

Ford plans to continue hiring workers in 2014, saying it will have its largest staffing increase in 50 years.

General Motors (GM, Fortune 500) and Chrysler Group, which both agreed to similar labor contracts two years ago, are also expected to report improved profit sharing payments in the coming week.

Ford's net profit for the quarter matched year-ago results. Its full-year net income was the strongest in more than a decade.

While full-year results improved in North America, fourth quarter earnings were down slightly. But losses in Europe narrowed, and Ford improved earnings in Asia. Revenue and vehicle sales increased worldwide and in North America for the quarter and the year.

But Ford repeated its earlier guidance that profits will be lower in 2014 as it spends more on vehicle introductions.

Ford F-150: Lighter and more efficient   Ford F-150: Lighter and more efficient

Ford announced Tuesday that it will shut the plants that make its best-selling Ford F-150 pickup for 11 weeks later this year as it prepares for a radical change in the pickup's design, using far more aluminum. The company also said vehicle pricing is likely to be lower as it has to discount the current year models as it introduces a record number of new models this year. To top of page