Monday, September 30, 2013

Top 5 Value Companies To Buy Right Now

LONDON --�I believe that shares in real estate investment trust (REIT)�British Land Company� (LSE: BLND  ) �are primed to shoot higher, with rolling earnings growth in coming years to underpin a steady recovery in its previously pressured dividend policy.

Exciting acquisition activity ready for lift off
British Land controls around 10 billion pounds worth of property in the U.K. Almost two-thirds of the firm's assets are located in the retail sector, the majority of which are in the form of out-of-town retail areas, with the remainder of its portfolio in the office space area.

The firm reported in January's encouraging interims that new retail lettings came in at 13% above estimated rental values, with an excellent occupancy rate of 98.1%. The company's assets remain susceptible to weakness in the wider macro environment, but I believe British Land's stellar asset management should continue to keep lettings rolling.

Top 5 Value Companies To Buy Right Now: Dollar Tree Inc.(DLTR)

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

Advisors' Opinion:
  • [By Paul Ausick]

    Dollar General�� share price is up less than 6% in the past 12 months, but since the beginning of the year shares have risen more than 22%. And even then, Dollar General�trails Dollar Tree Inc. (NASDAQ: DLTR) in share price growth since January 1. Dollar Tree stock is up 30%.

  • [By Lawrence Meyers]

    The finance sector, as mentioned, can make money in many ways. The second-highest growth sector is expected to be consumer discretionary, with a 6.2% increase. When you look at earnings from luxury brands like Tiffany & Co. (TIF), and that the hotel sector continues to do very well, it suggests that those people who are in good financial shape are spending their money. Meanwhile, dollar players like Dollar Tree (DLTR) continue to perform very well, suggesting that folks with less money are spending it on cheaper items.

Top 5 Value Companies To Buy Right Now: Schlumberger N.V.(SLB)

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

Advisors' Opinion:
  • [By Teresa Rivas]

    As for companies with the most upside, Marathon Petroleum (MPC) tops the list, with 63.6%, followed by Autodesk (ADSK), Ventas (VTR), salesforce.com (CRM) and American Tower (AMT). Outside the top five, the list also includes big names like Schlumberger (SLB), Halliburton (HAL), Expedia (EXPE) and General Motors (GM).

10 Best Warren Buffett Stocks To Own For 2014: Caterpillar Inc.(CAT)

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

Advisors' Opinion:
  • [By Alexis Xydias]

    Caterpillar (CAT)�� valuation has climbed 28 percent in the past year as the largest manufacturer of mining and construction machinery posted three quarters of earnings declines. Analysts predict a profit drop of 27 percent in 2013. Last month, the Peoria, Illinois-based company cut its earnings forecast as mining-equipment sales declined on slower commodity demand from emerging markets.

  • [By Chris Hill]

    Molex (NASDAQ: MOLX  ) is up big after Koch Industries agreed to buy the company for $7.2 billion in cash. Yum! Brands' (NYSE: YUM  ) same-store sales in China fall 10% in August. Caterpillar (NYSE: CAT  ) shares are up on news that China's exports grew more than 7% in August. And Middleby (NASDAQ: MIDD  ) closes in on a new all-time high. In this segment, the guys discuss four stocks making big moves.

  • [By Ben Levisohn]

    The rush to cut costs has been felt the hardest by mining-industry suppliers, including Caterpillar (CAT) and Joy Global�(JOY), Graf and Levental say, because cancelling orders for new equipment is one of the easiest ways to cut costs.

  • [By WALLSTCHEATSHEET.COM]

    Caterpillar provides essential industrial products that fuel infrastructure construction and mining projects in growing countries around the world. The stock has not made much progress in recent years and is now trading near the low end of a range that extends back a few years. Earnings and revenue figures have sent mixed signals to investors who have been pleased with recent earnings reports, regardless. Relative to its peers and sector, Caterpillar has trailed in year-to-date performance by a significant margin. WAIT AND SEE what Caterpillar does this coming quarter.

Top 5 Value Companies To Buy Right Now: Tupperware Corporation(TUP)

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

Advisors' Opinion:
  • [By Oliver Pursche]

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

  • [By John Udovich]

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

Saturday, September 28, 2013

Top 10 Canadian Companies To Own In Right Now

With shares of Target (NYSE:TGT) trading around $72, is TGT an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Target operates general stores in the United States, as well as online, where it sells merchandise at discounted prices. It operates in three segments: U.S. Retail, U.S. Credit Card, and Canadian. �Target�� online presence is designed to enable consumers to purchase products either online or by locating them in one of its stores with the aid of online research and location tools. Groceries, clothing, household items, and general merchandise can be found at Target, making it an efficient shopping experience for consumers throughout the nation.

Top 10 Canadian Companies To Own In Right Now: UniSource Energy Corporation(UNS)

UniSource Energy Corporation engages in the electric generation and energy delivery businesses. The company?s TEP segment generates, transmits, and distributes electricity to approximately 403,000 retail electric customers, including residential, commercial, industrial, and public sector customers in southeastern Arizona. It also sells electricity to other utilities and power marketing entities. As of December 31, 2010, this segment owned or leased 2,245 MW of net generating capacity, as well as owned or participated in electric transmission and distribution system consisting of 512 circuit-miles of 500-kV lines; 1,087 circuit-miles of 345-kV lines; 379 circuit-miles of 138-kV lines; 478 circuit-miles of 46-kV lines; and 2,621 circuit-miles of lower voltage primary lines. TEP segment generates electricity from coal, gas, oil, and solar sources. The company?s UNS Gas segment distributes gas to approximately 146,500 retail customers in Mohave, Yavapai, Coconino, and Navajo c ounties in northern Arizona, as well as Santa Cruz County in southeastern Arizona. As of December 31, 2010, this segment?s transmission and distribution system consisted of approximately 30 miles of steel transmission mains, 4,211 miles of steel and plastic distribution piping, and 136,439 customer service lines. The company?s UNS Electric segment transmits and distributes electricity to approximately 91,000 retail customers consisting of residential, commercial, and industrial customers in Mohave and Santa Cruz counties. As of December 31, 2010, UNS Electric?s transmission and distribution system consisted of approximately 56 circuit-miles of 115-kV transmission lines, 271 circuit-miles of 69-kV transmission lines, and 3,599 circuit-miles of underground and overhead distribution lines. This segment also owns the 65 MW Valencia plant, as well as 39 substations having an installed capacity of 1,788,050 kilovolt amperes. The company was founded in 1902 and is based in Tucson, Arizona.

Top 10 Canadian Companies To Own In Right Now: AmerisourceBergen Corporation (HOLDING CO)

AmerisourceBergen Corporation, a pharmaceutical services company, provides drug distribution and related services to healthcare providers and pharmaceutical manufacturers in the United States, the United Kingdom, and Canada. The company distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to various healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical and dialysis clinics, physicians, and long-term care and other alternate site pharmacies. It also offers various services, such as pharmaceutical packaging, pharmacy automation, inventory management, reimbursement and pharmaceutical consulting and staffing services, logistics services, and pharmacy management. In addition, AmerisourceBergen provides scalable automated pharmacy dispensing equipment, medication and supply dispensing cabinets , and supply management software to various retail and institutional healthcare providers. Further, the company offers distribution and other services to physicians, who specialize in various disease states; distributes plasma and other blood products, injectible pharmaceuticals, and vaccines; and provides drug commercialization, third party logistics, reimbursement consulting, data analytics, and outcomes research services for biotech and other pharmaceutical manufacturers, as well as practice management and group purchasing services for physician practices. Additionally, it delivers unit dose, punch card, unit-of-use, and other packaging solutions to institutional and retail healthcare providers; and offers contract packaging and clinical trial material services for pharmaceutical manufacturers. The company serves customers through a network of distribution and service centers, and packaging facilities. AmerisourceBergen was founded in 1985 and is headquartered in Chesterb rook, Pennsylvania.

Best Insurance Companies To Buy Right Now: Crown Castle International Corporation (CCI)

Crown Castle International Corp., through its subsidiaries, owns, operates, and leases towers and other wireless infrastructure primarily in the United States and Australia. Its infrastructure includes distributed antenna system (DAS) networks, as well as rooftop installations. The company involves in the rental of antenna space of its towers to wireless communications companies. It also provides network services relating to its towers, which primarily include antenna installations and subsequent augmentations, as well as additional services, such as site acquisition, architectural and engineering, zoning and permitting, other construction, and other services related network development. As of December 31, 2010, it owned, leased, or managed approximately 23,900 towers, including 43 completed DAS networks. The company was founded in 1994 and is headquartered in Houston, Texas.

Advisors' Opinion:
  • [By Dimitra DeFotis]

    Among stocks, cellular tower operator�American Tower (AMT), a real estate investment trust, is up nearly 5% after saying it will buy the parent of tower operator Global Tower Partners for $4.8 billion, according to Flyonthewall.com. �Crown Castle International (CCI) is up 3%. Press release here.

  • [By CRWE]

    Crown Castle International Corp. (NYSE:CCI) plans to release its third quarter 2012 results on Wednesday, October 24, 2012, after the market closes. In conjunction with the release, Crown Castle has scheduled a conference call for Thursday, October 25, 2012, at 10:30 a.m. Eastern Time.

Top 10 Canadian Companies To Own In Right Now: Research in Motion Limited(RIMM)

Research In Motion Limited (RIM) designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. The company, through the development of integrated hardware, software, and services, provides platforms and solutions for seamless access to time-sensitive information, including email, phone, short messaging service, and Internet and Intranet-based applications and browsing. Its products and services principally comprise the BlackBerry wireless platform, the RIM Wireless Handheld product line, software development tools, and other software and hardware. The company?s BlackBerry smartphones use wireless, push-based technology that delivers data to mobile users? business and consumer applications. Its BlackBerry smartphone portfolio includes BlackBerry Bold series, the BlackBerry Torch, BlackBerry Curve series, the BlackBerry Style, BlackBerry Storm series, the BlackBerry Tour, BlackBerry Pearl series, and the BlackBerry PlayBook tablet. T he company?s BlackBerry enterprise solutions comprise BlackBerry enterprise server, BlackBerry enterprise server express, BlackBerry mobile voice system, and hosted BlackBerry services. Its technology also enables third party developers and manufacturers to enhance their products and services through software development kits, wireless connectivity to data, and third-party support programs. In addition, the company offers BlackBerry technical support services, non-warranty repairs, and nonrecurring engineering services. Further, it provides BlackBerry App World that offers BlackBerry smartphone users an electronic catalogue that aids in the discovery and download/purchase of applications directly from their BlackBerry smartphone. The company markets and sells its BlackBerry wireless solutions primarily through global wireless communications carriers, and third party distribution channels. Research In Motion Limited was founded in 1984 and is headquartered in Waterloo, Canad a.

Advisors' Opinion:
  • [By Geoff Gannon]

    This is an important question because you may have in mind that you have a lot of faith in Apple right now. That faith may be well founded. But if you have little faith in Apple four or five or six years out ��do you really think you will be the first to spot the company's loss of leadership? Think about how quickly companies like Nokia (NOK) and Research In Motion (RIMM) saw their P/E ratios contract when investors realized just how far they were behind the competition. Do you really think you will be fast enough to spot a change in Apple's position? It�� not enough to see the writing on the wall. You have to see it faster than everyone else. You have to sell before they do.

Top 10 Canadian Companies To Own In Right Now: Wells Fargo & Company(WFC)

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

Advisors' Opinion:
  • [By Ben Levisohn]

    Shares of Bank of America have gained 1% to $14.47 today, while JPMorgan Chase (JPM)� has risen 0.7% to $53.66, Citigroup (C) has ticked up 0.3% to $51.01 and Wells Fargo (WFC) is up 0.3% to $43.13. The Financial Select Sector SPDR ETF (XLF) has gained 0.5% to $20.16.

Top 10 Canadian Companies To Own In Right Now: Stantec Inc(STN)

Stantec Inc. provides professional consulting services in planning, engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics in the areas of infrastructure and facilities for public and private sector clients in North America and internationally. The company involves in the design of healthcare, education, science and technology, airport, retail and commercial, and sports and recreation facilities. Its environmental solutions include water supply, treatment, storage, and distribution; wastewater collection, pumping, treatment, and disposal; watershed management; environmental assessment, documentation, and permitting; ecosystem restoration planning and design; environmental site management and remediation; subsurface investigation and characterization; and geotechnical engineering services. Stantec Inc. also provides industrial planning, functional programming, engineering, project mana gement, and construction support services in oil and gas, fossil and renewable energy, underground mining, linear infrastructure, power transmission and distribution, automotive, forest products, food and beverage, and general manufacturing sectors. In addition, the company prepares transportation master plans for communities; conduct transportation investment studies; plans and designs airport, transit, rail, and highway facilities; and provides administration and support services for the construction of specific projects, and ongoing management planning for the upkeep of transportation facilities, as well as simulation modeling services. Further, it offers urban land solutions for the land development, real estate, and retail and commercial industries, as well as professional services. The company was formerly known as Stanley Technology Group Inc. and changed its name to Stantec Inc. in October 1998. Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canad a.

Top 10 Canadian Companies To Own In Right Now: Gildan Activewear Inc.(GIL)

Gildan Activewear Inc. engages in the manufacture and sale of apparel products primarily in the United States, Canada, and Europe. It sells T-shirts, fleece, and sport shirts to wholesale distributors under the Gildan brand name. The company also provides its activewear products for work and school uniforms and athletic team wear, and other purposes to convey individual, group, and team identity. In addition, it offers undecorated products to branded apparel companies and retailers; and underwear products. Further, the company markets its sock products under the various brands, including Gold Toe, PowerSox, SilverToe, Auro, All Pro, GT, and the Gildan brand. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was founded in 1984 and is headquartered in Montreal, Canada.

Advisors' Opinion:
  • [By Tom Stoukas]

    Deutsche Lufthansa AG (LHA) and Allianz SE (ALV) led airlines and insurers lower, retreating at least 1.5 percent. Bayerische Motoren Werke AG (BMW) slid 1.6 percent. Deutsche Bank AG (DBK) rose after JPMorgan Chase & Co. boosted its recommendation on the shares. Gildemeister AG (GIL) added 3.4 percent after Deutsche Bank upgraded the maker of cutting tools.

Top 10 Canadian Companies To Own In Right Now: Tim Hortons Inc.(THI)

Tim Hortons Inc. develops, franchises, and operates quick service restaurants primarily in Canada and the United States. Its restaurants serve coffee and other hot and cold beverages, baked goods, sandwiches, soups, and other food products. As of April 03, 2011, the company and its restaurant owners operated 3,169 restaurants in Canada and 613 restaurants in the United States under the Tim Hortons name; and had 274 primarily self-serve licensed locations in the Republic of Ireland and the United Kingdom Tim Hortons Inc. was founded in 1964 and is based in Oakville, Canada.

Top 10 Canadian Companies To Own In Right Now: Ormat Technologies Inc.(ORA)

Ormat Technologies, Inc., together with its subsidiaries, engages in the geothermal and recovered energy power business in the United States and internationally. The company operates in two segments, Electricity and Product. The Electricity segment develops, builds, owns, and operates geothermal and recovered energy-based power plants; and sells the electricity. The Product segment designs, manufactures, and sells power units for geothermal and recovered energy-based electricity generation; fossil fuel powered turbo-generators; and heavy duty direct-current generators. It also provides services relating to the engineering, procurement, construction, operation, and maintenance of geothermal and recovered energy power plants. This segment serves contractors and geothermal power plant owners and operators; and interstate natural gas pipeline owners and operators, gas processing plant owners and operators, cement plant owners and operators, and companies in other energy-intens ive industrial processes. The company was founded in 1965 and is based in Reno, Nevada. Ormat Technologies, Inc. is a subsidiary of Ormat Industries Ltd.

Advisors' Opinion:
  • [By Amy Thomson]

    AT&T has examined takeover candidates including Vodafone�� assets, U.K. mobile carrier EE -- a venture of Deutsche Telekom AG (DTE) and Orange SA (ORA) -- and parts of Spain�� Telefonica SA (TEF), people familiar with the company�� plans said in June. AT&T is attracted to Europe because of its relatively recent introduction of faster, fourth-generation networks, which have been available for years in the U.S.

Top 10 Canadian Companies To Own In Right Now: BCE Inc. (BCE)

BCE Inc. provides communications solutions to residential, business, and wholesale customers primarily in Canada. The company offers local and long distance telephone services under the Bell Home Phone brand; direct-to-home satellite television (TV) services under the Bell TV name; Internet protocol TV services under the Bell Fibe TV brand; and personal video recorders and online access services. It also provides data services, including Internet access services under the Bell Internet name; Internet protocol based services; and information and communications technology solutions. In addition, the company engages in the rental, sale, and maintenance of business terminal equipment; sale of TV set-top boxes; and provision of network installation and maintenance services for third parties. Further, it offers wireless voice and data communications products and services, such as call display and voicemail, e-mail, Web browsing, social networking, text, picture and video messagi ng, music downloads, ring tunes, ringtones, games and applications, video streaming, live TV, mobile Internet, roaming, and global positioning system navigation services under the Bell and Virgin Mobile brands. Additionally, the company provides media services comprising TV programming services to broadcast distributors. It operates approximately 28 conventional over-the-air stations and 30 English and French-language specialty TV channels; 33 FM and AM radio stations and their related Websites; and Theloop.ca Website. As of December 31, 2012, the company served approximately 2.1 million high-speed Internet access customers through fiber-optic, digital subscriber line, or wireless broadband technology; and 7.7 million wireless customers. BCE Inc. offers its services through call centre representatives, independent dealer stores, and value-added resellers, as well as through its Websites. The company was founded in 1880 and is headquartered in Verdun, Canada.

Advisors' Opinion:
  • [By Holly LaFon]

    Dalio�� next largest purchase was Berkshire Hathaway Inc. (BRK.B), and three new buys: BCE Inc. (BCE), The Goldman Sachs Group Inc. (GS), and Peabody Energy Corp. (BTU).

Friday, September 27, 2013

Top Pick Update - Poised for Explosive Growth

Dr. John L. Faessel

ON THE MARKET

Commentary and Insights

Poised for Explosive Growth

Top pick GlyEco mentioned in a Bloomberg Business Week article.

GlyEco (GLYE) $1.12 OTCQB

Worth mentioning, but also worth shedding some needed perspective on, is the September 12th Bloomberg Business Week article that mentioned GlyEco near the end of the piece—the subject matter there was the five-year anniversary of the demise of Lehman Brothers.

The retrospective article mentioned that Mr. Dick Fuld, former Lehman Brothers CEO, is a shareholder of GlyEco. This has been common knowledge and mentioned in GlyEco SEC filings for some time. But because of Mr. Fuld's notoriety, the author fleshed out some of the ancient history regarding the early origins of the reverse merger of the company that was to eventually become GlyEco. Also mentioned was the not so recent news that GlyEco had hired a new auditor.

Firstly, the most important and obvious thing to highlight is that ALL reverse mergers from shell companies by definition were once failed companies. Therefore, to set the record straight; On November 21, 2011 the private company Global Recycling Technologies reversed merged into a shell with 1300 shareholders named Environmental Credits (ECCL). The surviving new public company was renamed GlyEco Inc, (GLYE) OTCQB. The 1300 shareholders are now shareholders of GlyEco. It should be emphasized that GlyEco is completely unaffiliated with the previous shell company.

See Wikipedia's "reverse merger takeover" explanation for the many reasons and benefits, including the drawbacks, here.

And a note: Did you know that the New York Stock Exchange and Berkshire Hathaway both have their origins as shell companies, and reverse merged into their current corporate structure? In addition, there are many other well-known companies that came to be via the reverse merger route.

Top 5 Oil Stocks To Own For 2014

Now a few words about the July 2013 news that GlyEco hired a new auditor referenced in the Bloomberg article. As tiny companies become larger they will need larger accounting firms. It's as simple as that. And certainly GlyEco fills the bill of a small company on an exceptional growth trajectory. GlyEco's new auditor is orders of magnitude larger than the previous auditor that began with the company when it was almost an idea. After over $10 million has been raised to date and with six (6) finalized acquisitions and one more on the front burner and with stated international aspirations it was time for GlyEco to progress to a larger auditing firm.

To further set the record straight: the Bloomberg article also stated that, "It's [GlyEco] recently run into trouble. In April [2013] its auditors raised 'substantial doubts' about its ability to remain a 'going concern.'" The fact is, the accounting firm had qualified the company with the same stipulation in filings since 2009 when it was a private company.

Part of the text of the April 2013 SEC filing for GlyEco was a confusing "going concern" reference. The phrase "going concern" has to do with a myriad of specific requirements of the financial reporting framework for, and the auditing standards common to, nearly all growth companies in development—and this usually remains the case until the subject company becomes cash flow positive and profitable. In today's world where litigation is almost a given, new companies in development are universally deemed by the audit committees to carry the "going concern" moniker.

Alicia Williams, GlyEco's CFO, stated in their recent conference call that GlyEco will be profitable beginning in the Q3 of the current fiscal year. Ms. Williams projected the company's revenues for 2013 to be approximately $10 million to $12 million with an EBITDA of $1.5 million to $2 million, and the company's revenues for 2014 to be approximately $45 million to $50 million, of which it is anticipated that $30 million to $40 million will be attributable to the production of Type I material, with an EBITDA of $13 million to $16 million.

Let me add to Ms. Williams financial projection and reiterate re the new auditor / "going concern" issue; "After over $10 million has been raised to date and with six (6) finalized acquisitions and one more on the front burner and with stated international aspirations it was time for GlyEco to progress to a larger auditing firm."

The world uses over 5.5 billion gallons a year of glycol priced at about $5.60 a gallon. Each year there is about 750 million gallons of waste glycol "feedstock" created in the USA and about another 250 million gallons generated in Canada. The patent-pending GlyEco Type 1 recycling process is the only technology that can process and clean all five types of hazardous waste glycols to meet or exceed ASTM standards indistinguishable from refinery grade glycol. Furthermore, the US Environmental Protection Agency [EPA] requires that most federal agencies buy products like antifreeze with the highest feasible recycled content level. Most federal agencies report a lack of supply of recycled glycol to meet their demand.

(GLYE) revealed in a recent press release (link here) a partnership deal to collect hazardous waste glycol from Waste Management (WM) NYSE to create the first nationwide program for recycling used glycols. The deal was 'alluded to' in the recent conference call when management stated that two major feedstock suppliers are in "the final stages of negotiations" and are expected to "supply millions or tens of millions of gallons per year." So there is another big deal and announcement 'cooking', and the supply of toxic waste glycol moving to GlyEco is going to be to be very, very large.

The concise and powerful GlyEco story is that the company owns a unique, disruptive, and breakthrough technology that takes a 'throwaway' toxic waste acquired at a cost of near zero or less (actually getting paid to pick it up), processes it, then sell it for $5.60 a gallon—and there's over a billion gallons within easy reach. GlyEco's revenues and profits should expand significantly as the acquired assets upgrade to the GlyEco technology to produce Type 1 material, and that news flow will drive share price. With a market-cap of only $46 million, I can see it escalating markedly—much the way Waste Management's tracked in its early hyper-growth days—if management keeps up the same development and acquisition pace. Hence, my optimistic outlook concerning the GlyEco shares.

Visit (GLYE)'s comprehensive website: www.glyeco.com

Disclosure: I am long GLYE - I have purchased shares and will likely buy more. I have no affiliation with the company.

Thursday, September 26, 2013

Gross: Fed will still taper after jobs report

bill gross, pimco Bloomberg

Bill Gross, manager of the world's biggest bond mutual fund, said Federal Reserve Chairman Ben S. Bernanke will go ahead with a plan to reduce the central bank's unprecedented asset purchases despite a disappointing jobs report.

“I think Bernanke and company are committed to a taper,” Gross, co-founder of Pacific Investment Management Co., said today in a radio interview on “Bloomberg Surveillance” with Tom Keene. “It will be taper lite as opposed to a strong tapering.”

With so much uncertainty, money continues to shift to cash. How are your clients responding? Join the conversation

Payrolls in the U.S. climbed less than projected in August after smaller gains the prior two months, indicating companies are being deliberate in their hiring as they wait for a pickup in demand. The gain of 169,000 workers last month followed a revised 104,000 rise in July that was smaller than initially estimated, Labor Department figures showed today in Washington. The median forecast of 96 economists surveyed by Bloomberg called for an August increase of 180,000. Unemployment dropped to 7.3 percent, the lowest since December 2008.

The Fed will probably reduce its assets purchases by $10 billion and focus on Treasury bonds, said Gross, who's also co- chief investment officer, along with Mohamed El-Erian, of the Newport Beach, California-based firm.Unprecedented Challenges

Top bond managers from Gross to Jeffrey Gundlach and Dan Fuss have seen their funds shrink after Bernanke raised the possibility in May that the central bank would begin to scale back bond purchases. Gross’s $251 Pimco Total Return Fund contracted by more than $14 billion, or 14 percent of its assets, in the past four months through losses and investor withdrawals.

Bond managers are being challenged in ways they never have been, Gross said in the interview. While Pimco is seeing withdrawals from the Total Return fund, investors are adding money to other strategies, such as the Pimco Unconstrained Bond Fund, he said.

Pimco Total Return currently has 10 percent of assets, or about $25 billion, in cash, Gross said.

“There are no great choices for the Fed at this point,” El-Erian said today in an interview on Bloomberg Television’s “In the Loop” with Betty Liu. “Today’s number tells you that we’re still in second gear, even though the U.S. can be driven at a much higher speed.”

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Wednesday, September 25, 2013

Wageworks Inc (WAGE): A Small Cap Obamacare Buy After Insiders Cash Out?

On Wednesday, small cap employee flexible spending account facilitator Wageworks Inc (NYSE: WAGE) rose 12.22% despite a secondary offering that effectively rewarded insiders plus the stock has tripled since last March. However, Wageworks' CEO recently said in a conference call last week that he believes the private health care exchanges related to Obamacare are expanding the company's market plus WAGE also raised its forecast for full-year growth. So does that make this small cap a buy? 

What is Wageworks Inc? 

Small cap Wageworks calls itself a leading on-demand provider of tax-advantaged programs for consumer-directed health, commuter and other employee spending account benefits, or CDBs, in the United States. Specifically, Wageworks administers and operate a broad array of CDBs which include spending account management programs, such as health and dependent care Flexible Spending Accounts, or FSAs; Health Savings Accounts, or HSAs; Health Reimbursement Arrangements, or HRAs; and commuter benefits, such as transit and parking programs. WageWorks says it has become the provider of choice to many of the nation's largest and most innovative companies, including 50% of the Fortune 100 Companies, 36.8% of the Fortune 500 Companies and 38% of Working Mother Magazine's Best Places to Work.

What You Need to Know About Wageworks Inc

Wageworks priced its follow-on public offering of 2,968,276 shares at a price to the public of $40.45 per share – a discount to a previous closing price of $40.51. The company will not receive any proceeds from the sale of shares with the principal purposes of this offering being to facilitate an orderly distribution of shares for the selling stockholders and to increase WAGE's public float. According to Bloomberg, WageWorks or selling stockholders, may offer "from time to time," up to 7.24 million shares in one or more offerings.

Investors should be aware that Wageworks reported earnings on Wednesday last week with total revenue rising 25% to $54.6 million and GAAP net income of $4.0 million verses $2.4 million for the same period last year. The CEO noted:

"Finally, we are excited to see the addressable market for our services expanding, primarily due to the opportunities for Consumer-Directed Benefits within private health insurance exchanges. Our recently announced relationship with Towers Watson, where we will serve as their exclusive administrator of HSAs and HRAs for their One Exchange Active private health insurance exchange, serves as a good example for this market expansion."

Wageworks also announced a strategic alliance with Ceridian, a leader in human capital management with more than 100,000 clients in over 50 countries. Under the strategic alliance, both companies expect to transition approximately 18,000 employers from Ceridian to WageWorks' Consumer-Directed Benefits with the transitions expected to begin during the fourth quarter of 2013 and continue into 2014.

However, investors should be ware that Wageworks has a trailing P/E of 102.62 and a still very rich forward P/E of 52.86 – meaning shares are hardly a bargain right now for any new investor thinking of getting in.

Share Performance: Wageworks Inc

On Wednesday, small cap Wageworks rose 12.22% to $45.46 (WAGE has a 52 week trading range of $15.71 to $45.46 a share) for a market cap of $1.54 billion plus the stock is up 159.6% since the start of the year, up 178.7% over the past year and up 315.5% since last March:

Finally and for technicians and investors who like looking at technical charts, here is the latest technical chart for Wageworks:

The Bottom Line. Wageworks has been a great performer and could very will continue this performance for current investors, but its sky high valuation should keep you on the sidelines if you are not already in on the party.

Tuesday, September 24, 2013

Hot Gold Stocks To Invest In Right Now

NEW YORK (TheStreet) -- CHANGE IN RATINGS

Becton Dickinson (BDX) was upgraded at Piper Jaffray to overweight from neutral. $117 price target. Microbiology market should drive earnings growth, Piper Jaffray said.

Biomarin (BMRN) was downgraded at Stifel Nicolaus to hold from buy. Valuation call, as the stock is largely pricing in potential near-term catalysts, Stifel Nicolaus said.

Caterpillar (CAT) was downgraded at Robert Baird to neutral from outperform. Company is facing mining headwinds and lower construction growth, Robert Baird said. Frank's International (FI) was initiated with a buy rating and $33 price target at UBS. The company has industry leading margins, exposure to attractive offshore markets and balance sheet strength, UBS said. HCA (HCA) was upgraded at Mizuho to buy from neutral. $51 price target. Company should benefit from health care reform, Mizuho said. Intuit (INTU) was downgraded at Morgan Stanley to underweight. $62 price target. Tax business growth is slowing, Morgan Stanley said. International Rectifier (IRF) was upgraded to buy at TheStreet Ratings. Interpublic Group (IPG) was upgraded to hold from underperform at Jefferies. $17.20 price target. Big steps forward but valuation remains rich, Jefferies said. [Read: 5 Stocks Under $10 Making Big Moves] ServiceNow (NOW) was upgraded at Morgan Stanley to overweight. $62 price target. Total addressable market is higher than previous thought, Morgan Stanley said. Nucor (NUE) was initiated with an outperform rating at BMO Capital. $54 price target. Company should see an improved product mix and lower costs, BMO Capital said. Oil States (OIS) was upgraded at BMO Capital to market perform. $110 price target. Company is sold a noncore asset, and the sector is seeing better momentum, BMO Capital said. Elizabeth Arden (RDEN) was downgraded at B. Riley to neutral from buy. Valuation call, as the stock is approaching the $40 price target, B. Riley said. [Read: How Capital Markets Will React to FOMC News] Shutterfly (SFLY) was upgraded to buy at TheStreet Ratings. Synchronoss (SNCR) was upgraded at Goldman Sachs to neutral from sell. $37 price target. Estimates also upped, given higher expected growth at Verizon (VZ), Goldman said. AT&T (T) was initiated with an outperform rating at Credit Suisse. $38 price target. Stock is attractively valued, on a relative basis, Credit Suisse said.

Hot Gold Stocks To Invest In Right Now: Thompson Creek Metals Company Inc.(TC)

Thompson Creek Metals Company Inc., through its subsidiaries, engages in mining, milling, processing, and marketing molybdenum products in the United States and Canada. The company?s principal properties include the Thompson Creek Mine and mill in Idaho; a metallurgical roasting facility in Langeloth, Pennsylvania; and a joint venture interest in the Endako Mine, mill, and roasting facility in British Columbia. It also holds interests in development projects comprising the Davidson molybdenum property and the Berg copper-molybdenum-silver property located in northern British Columbia; the Howard?s Pass property, a lead and zinc project situated in the Yukon territory-northwest territories border; and the Maze Lake property, a gold project located in the Kivalliq district of Nunavut. The company produces molybdenum products, primarily molybdic oxide and ferromolybdenum, as well as soluble technical oxide, pure molybdenum tri-oxide, and high purity molybdenum disulfide. As o f December 31, 2010, its consolidated recoverable proven and probable ore reserves totaled 462.2 million pounds of contained molybdenum in the Thompson Creek Mine and the Endako Mine. The company was formerly known as Blue Pearl Mining Ltd. and changed its name to Thompson Creek Metals Company Inc. in May 2007. Thompson Creek Metals Company Inc. is based in Denver, Colorado.

Hot Gold Stocks To Invest In Right Now: Golden Star Resources Ltd(GSS)

Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.

Hot Cheap Stocks To Watch Right Now: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Hot Gold Stocks To Invest In Right Now: Goldcorp Incorporated(GG)

Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It produces and sells gold, silver, copper, lead, and zinc. The company was founded in 1954 and is headquartered in Vancouver, Canada.

Hot Gold Stocks To Invest In Right Now: Agnico-Eagle Mines Limited(AEM)

Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. The company primarily explores for gold, as well as silver, copper, zinc, and lead. Its flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. The company was founded in 1953 and is based in Toronto, Canada.

Hot Gold Stocks To Invest In Right Now: Australian Dollar(AU)

AngloGold Ashanti Limited primarily engages in the exploration and production of gold. It also produces silver, uranium oxide, and sulfuric acid. The company conducts gold-mining operations in South Africa; continental Africa, including Ghana, Guinea, Mali, Namibia, and Tanzania; Australia; and the Americas, which include Argentina, Brazil, and the United States. It also has mining or exploration operations in the Democratic Republic of the Congo, Guinea, and Colombia. As of December 31, 2010, the company had proved and probable gold reserves of 71.2 million ounces. The company has a strategic alliance with Thani Dubai Mining Limited to explore, develop, and operate mines across the Middle East and parts of North Africa. AngloGold Ashanti Limited, formerly known as Vaal Reefs Exploration and Mining Company Limited, was founded in 1944 and is headquartered in Johannesburg, South Africa.

Advisors' Opinion:
  • [By Profit Confidential]

    Graham Ehm, Executive Vice President of South African-based AngloGold Ashanti Limited (NYSE: AU), one of the biggest gold producers in the global economy, stated the company is looking to save $500 million over the next 18 months, as capital expenditures will only be going towards their highest-quality assets. (Source: Mining Weekly, August 5, 2013.)

  • [By Sally Jones]

    Anglogold Ashanti Limited (AU)

    Down 65% over 12 months, Anglogold Ashanti Limited has a market cap of $4.85 billion, and trades with a P/E of 8.10.

Monday, September 23, 2013

Municipal Bonds Land in Bargain Basement

NEW YORK (TheStreet ) -- Most bonds have declined lately, but the damage has been particularly severe for municipal bonds and the mutual funds that invest in them.

This year mutual funds that invest in intermediate-term municipal bonds across the nation lost 3.5%, while funds that invest in high-yield municipal funds declined 7.4%, according to Morningstar. At the same time, the Barclays Capital U.S. Aggregate Bond index dropped 2.3%.

Now, however, some portfolio managers argue that municipals have reached attractive levels.

"We are seeing some prices that are comparable to what appeared during the financial crisis in 2008," says Michael Walls, portfolio manager of Waddell & Reed Municipal High Income (UMUHX). Walls says that municipals were not cheap at the beginning of the year. Then in the spring, prices collapsed and yields rose. Yields on triple-A-rated 30-year bonds have risen from around 3% early in the year to 4.6% now. The current tax-free yield is the equivalent of a taxable bond that yields 7% for high-income investors. Some bonds rated triple-B-minus, the lowest investment-grade rating, now yield 6.5%, up from 4.5% early in the year. The big downturn began in May and June. After Federal Reserve Chairman Ben Bernanke talked about tapering his bond-buying program, investors started dumping bonds of all kinds. As prices fell, yields rose. The rout in municipals became exacerbated by media reports that holders of Detroit bonds could face losses in bankruptcy proceedings. Panicked shareholders withdrew $31 billion from municipal mutual funds, a big sum for a fund category that has a total of $518 billion in assets. "Retail investors looked at their monthly statements, and they started selling," says Walls of Waddell & Reed. To capture attractive yields, consider mutual funds that fared relatively well during the downturn. Successful funds include Baird Intermediate Municipal Bond (BMBSX), Thornburg Intermediate Municipal (THIMX) and Waddell & Reed Municipal High Income. The winning managers emphasized short-term bonds or used other techniques to limit losses. Those approaches could protect shareholders in future downturns. Baird Intermediate has lost 2.4% this year, outpacing average competitors by more than a percentage point. Baird often excels in downturns because it focuses on high-quality securities.

Top-rated bonds were relatively resilient in recent months as nervous investors steered away from shaky issues. Although the average intermediate municipal portfolio has 15% of its assets in triple-A-rated securities, Baird has 68% of assets in the top-rated category. The approach is designed for conservative investors.

"Many municipal investors have made a lot of money, and they are focused on preserving wealth," says Baird portfolio manager Warren Pierson.

The cautious approach worked especially well in the turmoil of 2008. For the year, Baird returned 6.0% and outdid 99% of peers. The conservative stance does not win every year. In 2012, investors gained confidence and sought to obtain higher yields from low-quality bonds. For the year Baird lagged most peers.

Thornburg Intermediate outperformed this year by emphasizing bonds with shorter maturities. Those suffer only limited losses when rates rise. Early in the year, portfolio manager Christopher Ryon began shifting away from longer bonds because the yields seemed relatively skimpy. "You were not being paid to take the risks of holding longer bonds," says Ryon. Thornburg always holds bonds of different maturities, following a strategy known as laddering. The portfolio managers vary the ladder, sometimes emphasizing bonds of long or short maturities. Now that yields on longer bonds have risen, Ryon has begun shopping again for bonds with maturities of 15 or 20 years. The laddering approach has proved effective in periods of rising and falling rates. Waddell & Reed Municipal High Income fared relatively well this year by holding some adjustable-rate securities. Those stayed steady because their yields rise when interest rates climb. The fund holds a mix of investment-grade bonds and securities that are rated below-investment grade. Portfolio manager Michael Walls says that the downturn has created special bargains in Puerto Rico. The island suffers from big budget deficits and unfunded pension obligations. That has depressed bond prices. Walls says that investors have overreacted. He is picking up sound bonds that sell for as little as 60 cents on the dollar. His holdings include issues backed by revenues from electric utilities and sales taxes. At the time of publication, Luxenberg had no positions in securities mentioned. Follow @StanLuxenberg This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Stan Luxenberg is a freelance writer specializing in mutual funds and investing. He was executive editor of Individual Investor magazine.

Saturday, September 21, 2013

Morgan Stanley Upgrades Time Warner to “Overweight” (TWX)

Morgan Stanley analysts upgraded Time Warner Inc (TWX) early on Thursday as they believe the entertainment and media company’s publishing spin-off should help highlight a business that is leveraged to a healthy and growing TV environment.

The analysts upgraded TWX from “Equal-Weight” to “Overweight” and see shares reaching $72. This price target suggests a 14% upside to the stock’s Wednesday closing price of $63.34.

Time Warner shares were up 66 cents, or 1.03%, during morning trading on Thursday. The stock is up 34.06% year-to-date.

Thursday, September 19, 2013

5 Stocks Under $10 Making Big Moves

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

>>5 Stocks Set to Soar on Bullish Earnings

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

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

>>5 Breakout Trades to Take Ahead of the Fed

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

Body Central

Body Central (BODY) is a multi-channel specialty retailer that operates apparel stores and also conducts direct business via catalogues and Web site. This stock closed up 3.2% to $6.43 in Tuesday's trading session.

Tuesday's Range: $6.18-$6.43

52-Week Range: $6.00-$13.39

Tuesday's Volume: 418,000

Three-Month Average Volume: 279,597

>>5 Stocks Rising on Big Volume

From a technical perspective, BODY jumped notably higher here with above-average volume. This stock gapped down sharply recently from $12 to under $8 with heavy downside volume. Following that move, shares of BODY went on to make a new low at $6 with bearish downside volume flows. That move has now pushed shares of BODY into oversold territory, since the stock's current relative strength index reading is 32.42. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher from.

Traders should now look for long-biased trades in BODY as long as it's trending above that recent low of $6 and then once it sustains a move or close above some near-term overhead resistance at $6.48 with volume that hits near or above 279,597 shares. If we get that move soon, then BODY could experience a sharp oversold bounce that takes this stock back towards $7.75 to $8.50.

Dynex

Dynex (DX) is a real estate investment trust that invests in mortgage loans and securities on a leveraged basis. This stock closed up 2.2% to $8.68 in Tuesday's trading session.

Tuesday's Range: $8.51-$8.69

52-Week Range: $7.71-$11.06

Thursday's Volume: 454,000

Three-Month Average Volume: 473,773

>>5 Rocket Stocks to Buy as Mr. Market Climbs

From a technical perspective, DX spiked notably higher here with decent upside volume. This stock has been uptrending strong for the last month, with shares moving higher from its low of $7.71 to its intraday high of $8.69. During that move, shares of DX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of DX within range of triggering a major breakout trade. That trade will hit if DX manages to take out its 50-day moving average of $8.82 and then once it clears its gap down day high from July at $8.86 with high volume.

Traders should now look for long-biased trades in DX as long as it's trending above some near-term support at $8.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 473,773 shares. If we get that move soon, then DX will set up to re-fill some of its previous gap down zone from July that started just above $9.75. Any high-volume move above that level will then give DX a chance to tag its next major overhead resistance levels at $10.24 to $10.44.

Inventure Foods

Inventure Foods (SNAK) develops, produces markets and distributes snack food products and frozen berry products. This stock closed up 2% to $9.68 in Tuesday's trading session.

Tuesday's Range: $9.39-$9.72

52-Week Range: $5.56-$9.74

Thursday's Volume: 75,000

Three-Month Average Volume: 52,442

>>5 Stocks Ready for Breakouts

From a technical perspective, SNAK rose modestly higher here right above its 50-day moving average of $9.25 with above-average volume. This move pushed shares of SNAK into breakout territory, since this stock took out some near-term overhead resistance levels at $9.45 to $9.59. Shares of SNAK are now quickly moving within range of triggering another major breakout trade. That trade will hit if SNAK manages to clear some near-term overhead resistance at $9.69 to its 52-week high at $9.74 with high volume.

Traders should now look for long-biased trades in SNAK as long as it's trending above 50-day at $9.25 or above more near-term support at $8.95 and then once it sustains a move or close above those breakout levels with volume that hits near or above 52,442 shares. If that breakout triggers soon, then SNAK will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $12 to $13.

Marchex

Marchex (MCHX) is a mobile performance advertising company that delivers customer calls to businesses and analyzes those calls so companies can get the most out of their advertising. This stock closed up 4.4% to $7.48 in Tuesday's trading session.

Tuesday's Range: $7.21-$7.48

52-Week Range: $3.41-$7.58

Thursday's Volume: 106,000

Three-Month Average Volume: 83,781

From a technical perspective, MCHX spiked sharply higher here right above some near-term support at $7 with above-average volume. This stock has been uptrending strong for the last five months, with shares moving higher from its low of $3.70 to its recent high of $7.58. During that uptrend, shares of MCHX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MCHX within range of triggering a major breakout trade. That trade will hit if MCHX manages to take out Tuesday's high of $7.48 to its 52-week high at $7.58 with high volume.

Traders should now look for long-biased trades in MCHX as long as it's trending above its 50-day at $6.60 and then once it sustains a move or close above those breakout levels with volume that hits near or above 83,781 shares. If that breakout triggers soon, then MCHX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $8.76 to $9.55, or even $10.

MGIC Investment

MGIC Investment (MTG) is a provider of private mortgage insurance in the U.S. This stock closed up 2.3% to $7.54 in Tuesday's trading session.

Tuesday's Range: $7.33-$7.58

52-Week Range: $1.34-$8.16

Thursday's Volume: 6.21 million

Three-Month Average Volume: 8.35 million

From a technical perspective, MTG bounced notably higher here right above its 50-day moving average of $7.14 with lighter-than-average volume. This stock has been trending sideways for the last month, with shares moving between $6.75 on the downside and $7.45 on the upside. Shares of MTG have now started to take out the upper-end of that range on Tuesday, since the stock closed at $7.54. This move is quickly pushing shares of MTG within range of triggering a major breakout trade. That trade will hit if MTG manages to take out some near-term overhead resistance levels at $7.84 to its 52-week high at $8.16 with high volume.

Traders should now look for long-biased trades in MTG as long as it's trending above its 50-day at $7.14 and then once it sustains a move or close above those breakout levels with volume that hits near or above 8.35 million shares. If that breakout triggers soon, then MTG will set up to enter new 52-week-high territory above $8.16, which is bullish technical price action. Some possible upside targets off that breakout are $9 to $10.

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

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>Why Wall Street Got Apple Wrong



>>5 Stocks With Big Insider Buying



>>5 REITs That Call Bernanke's Bluff

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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


Wednesday, September 18, 2013

A Strong Third-Quarter Rebound for Canada’s Economy?

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Canada’s latest manufacturing data could portend a strong third quarter for the economy, after last quarter’s gross domestic product (GDP) growth was undermined by historic flooding in Alberta and a province-wide strike in Quebec.

According to Statistics Canada, manufacturing sales climbed 1.7 percent month over month in July, to CAD49.5 billion, a solid rebound following June’s initial decline of 0.5 percent, which was subsequently revised to a decline of just 0.1 percent.

Sales growth was widespread, with gains across 15 of Canada’s 21 industries. Sales of durable goods rose 2.1 percent, to CAD24.8 billion, while sales of non-durable goods increased 1.2 percent, to CAD24.6 billion. Sales of motor vehicles, wood, fabricated metal, and non-metallic mineral products were important growth drivers, while sales in the aerospace sector detracted from growth.

July’s result trounced economists’ consensus forecast, which according to Bloomberg called for a more modest gain of 0.5 percent. Over the past five years, manufacturing sales have declined an average of 0.02 percent per month, while over the past year they’ve increased by an average of 0.04 percent per month. During the nearly five-year period preceding the 2008-09 global downturn, by contrast, factory sales grew an average of 0.3 percent per month.

As such, the July number is significant, though in reviewing data over the past year, February was the single best month for the manufacturing sector, when sales grew 3.4 percent month over month. Month-to-month data tend to be volatile, however, so that didn’t stop manufacturing sales from posting declines in three of the four months thereafter.

Top 10 Growth Stocks To Own For 2014

This time around, some of the demand that would have ordinarily occurred in the second quarter, absent the aforementioned one-time events, was probably pushed back to the third quarter. That’s evidenced by the dismal number for June GDP, which dropped five-tenths of a percentage point from the previous month, for year-over-year growth of just 0.9 percent.

As a result, economic growth decelerated during the second quarter to a rate of 1.7 percent annualized from 2.5 percent in the prior quarter. But in addition to deferred demand, the third quarter should also get a boost from rebuilding activity following Alberta’s floods.

On that front, we’re still awaiting the Bank of Canada’s (BoC) next set of economic forecasts, which are scheduled to be published in late October. The BoC’s July projections, which came out before second-quarter GDP numbers were announced, showed an ultra-conservative forecast for last quarter of just 1 percent growth. Meanwhile, the central bank forecast growth for the third quarter of 3.8 percent.

Given that growth for the second quarter actually came in at 1.7 percent, it’s likely that the BoC modeled a stronger dampening effect on the second quarter than actually transpired, with more demand pushed back to the third quarter. As a result, the bank will likely lower its third-quarter projection in its next report on monetary policy. For instance, the Royal Bank of Canada is currently forecasting third-quarter GDP growth of 3.4 percent, four-tenths of a percentage point below the BoC’s July estimate.

One of the major headwinds for Canada’s manufacturing sector has been weak demand from the US, which is the country’s largest trading partner. If the nascent US recovery continues to strengthen, then that should bolster the economy of its neighbor to the north. Indeed, the BoC is hoping that the Canadian economy will transition toward export growth, which will, in turn, spur greater business investment.

To that end, Canada’s declining currency should help its exports become more competitive in the global market. The loonie traded above parity with the US dollar for much of the two-year period from 2011-12, but then dropped below this key threshold earlier this year in mid-February. The Canadian dollar fell as low as USD0.945 in early July, but currently trades near USD0.97, down about 5.8 percent from its trailing-year high.

While this latest snapshot of the manufacturing sector is just one piece of economic data, at the very least, it comports with economists’ narrative of a third-quarter rebound for Canada’s economy.

Sunday, September 15, 2013

Eleven Countries with Soaring Inflation

While inflation has been relatively tame in the United States and Europe, several large nations have struggled with rising prices. Sadly, most instances are simply stagflation, where prices are rising but the economic growth is substandard. A high inflation rate jeopardizes a country’s economic stability and the well-being of its people. 24/7 Wall St. reviewed the nations with the highest inflation rates around the world and it was in many cases shocking to see which nations were on the list.

As was the case in the United States, even a modest increase in health care costs of a few percentage points had major repercussions for the population as lower-income residents stopped affording many services. In developing and emerging economies, rising prices can cause much more severe problems as most of the benefits of economic growth are being absorbed by a higher cost of living. Unlike much of the developed world, many nations do not have formal health care systems. And with prices of other necessities increasing as well — from food to heating to gasoline to clothing — there is less to spend on everything.

Higher inflation can be crippling for economic development. A 10% increase in income compared to the prior year when prices are stable allows for a higher disposable income and higher savings rates. However, if prices rise 10% while economic growth slows down to 2%, then real purchasing power has eroded.

If the countries that suffer from high inflation rates and slower economic growth also have high unemployment rates, low economic mobility and low job openings, the situation can quickly deteriorate. That is when the risk of stagflation becomes real. Three of the high-growth, emerging market BRIC nations — Brazil, Russia, India and China — are among the nations suffering from high inflation.

In several of the high inflation nations, the reported unemployment rate remains quite high. Four nations had a higher unemployment rate than the U.S.’s 7.4% as of July. In South Africa, more than 25% of the workforce was unemployed as of the second quarter of 2013. Egypt, currently embroiled in a massive political crisis, has an unemployment rate of more than 13%.

Many of these nations also have trade deficits, meaning they are massive net importers. Just four of these nations — Argentina, Brazil, Russia and Vietnam — have had exports exceed imports over the most recently available 12 months. India's trade deficit was the second highest in the world behind only the United States, at nearly $200 billion for the 12 months through the second quarter of 2012.

Countries with high inflation also face high government borrowing costs as a result, since lenders need to be compensated for the loss of their investments' buying power. Each of the seven nations for which 10-year government bond interest rates were available had one of the eight highest interest rates in the world. To borrow for 10 years, Pakistan's government must pay a quoted rate of 12%.

Based on the 57 nations considered by the Economist, 24/7 Wall St. identified the nations with the highest inflation rates measured by year-over-year increases in consumer prices. We reviewed figures on output, unemployment, trade, budgets and interest rates, also from the Economist. Population data are from the CIA's World Factbook. We excluded Hong Kong from the rankings because it is a Special Administrative Region of China and not a fully independent nation. Similarly, while Zimbabwe and Iran are both struggling with high inflation, they were not considered by the Economist, likely due to the countries’ unreliable economic data.

These are the countries with the highest inflation rates.

Saturday, September 14, 2013

3D Systems Is Making Printable Food a Possibility

If you thought the consumer-centric 3-D printing possibilities from Stratasys' (NASDAQ: SSYS  )  recent $400 million merger with MakerBot were exciting, you're gonna love this.

3D Systems  (NYSE: DDD  ) may have started selling its affordable Cube line of 3-D printers at Staples in June, but on Tuesday the additive manufacturing stalwart announced that it has acquired The Sugar Lab, a California-based "start-up micro-design firm" which, just like it sounds, specializes in the 3-D printing of real sugar.

Image source: The Sugar Lab

And yes, everything The Sugar Lab prints out is edible and, according to Tuesday's press release, the process was achieved by adopting "3D Systems' Color Jet Printing technology to print on a sugar bed using different flavored binders that meet all food safety requirements."

An entirely new(ish) flavor of awesome
According to The Sugar Lab's website, the concept was started by a husband and wife architectural team, Kyle and Liz von Hasseln, while they were both graduate students. Since then, they have taken advantage of their background in architecture and self-described "penchant for complex geometry" to bring "3D printing technology to the genre of megacool cakes."

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But while The Sugar Lab's current target audience is relatively narrow, Mrs. von Hasseln elaborated on the deal to say, "We see our technology quickly evolving into a variety of flavors and foods, powered by real food printers for professionals and consumers alike and we could not think of a more qualified partner than 3D Systems to help make that a reality."

That said, it's worth noting 3-D printed food isn't entirely new.

Remember, way back in February, our very own Brendan Byrnes interviewed 3D Systems' new chief strategy officer, Ping Fu, who said at the time she was also serving as an advisor to another company which specializes in printing meat and leather products through the use of stem-cell tissue engineering and in-vitro technology -- a field which she claims could eventually allow them to to "produce high-quality protein to developing countries without having [their current] unsustainable way of raising cows." 

Then in July, NASA awarded a small SBIR Phase I contract to an Austin-based company called Systems and Materials Research Consultancy, through which it will explore the possibility of using additive manufacturing to print food in space for long duration space missions.

Of course, those aren't the only examples of 3-D printed food developments in the works, but it is safe to say that this week's news seems to be a logical step toward 3D Systems' greater ambitions in the world of culinary printing.

That begs the question, then, of when other significant industry players like Stratasys will decide to follow suit, especially given the fact 3-D printed food is unlikely to materially contribute to either company's sales or profits anytime in the near future.

As it stands, remember Stratasys shares popped more than 14% after the company's own solid second-quarter earnings report, which included 20% year-over-year organic revenue growth, and 32% adjusted net income growth -- so they're doing just fine right now by placing the majority of their focus on the currently lucrative industrial 3-D printing market.

Foolish takeaway
But going forward, you have to admit the prospect of being able to print food is not only technically cool, but also (keeping in mind Fu's meat-printing illustration above) could solve a slew of today's problems related to unsustainable food production down the road. In the end, this sort of propensity for changing the world for the better is exactly one of the reason I own shares of 3D Systems in my own portfolio.

So mark this day, 3-D printing investors, because this could be the start of something much, much bigger.

Thursday, September 12, 2013

What’s In Store for Microsoft Stock?

With shares of Microsoft (NASDAQ:MSFT) trading around $32, is MSFT an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework.

T = Trends for a Stock’s Movement

Microsoft is engaged in developing, licensing, and supporting a wide range of software products and services. The company also designs and sells hardware and delivers online advertising to customers. It operates in five segments: Windows and Windows Live, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices. As a mature company, Microsoft is also offering a stable dividend, which is currently yielding around 2.92 percent annually.

Microsoft investors have named their top picks to replace Steve Ballmer as CEO, and Ford's (NYSE:F) Alan Mulally and Computer Sciences (NYSE:CS) head Mike Lawrie are at the top of the list, according to sources who spoke to Reuters. A special committee of the company's board are combing through a list of around 40 candidates inside and outside the company, and they hope to find Ballmer's replacement by the end of the year. Last month, Ballmer made the surprise announcement that he would be leaving Microsoft by the end of 2014.

Recently, Microsoft agreed to purchase Nokia's (NYSE:NOK) mobile phone unit, patents, and mapping services for a total of $7.2 billion. Nokia's phones already use Microsoft's Windows Phone software. The company's Canadian head, Stephen Elop, will lead Microsoft's mobile devices unit, and his name has even been tossed around as a possible replacement for Ballmer. Nokia used to dominate the mobile phone market, but has since fallen far behind rivals Apple (NASDAQ:AAPL) and Samsung (SSNLF.PK) in the highly competitive market.

T = Technicals on the Stock Chart Are Mixed

Microsoft stock has not made significant progress over the past several years. The stock is currently trading near mid-prices for the year but looks to be bouncing off of key support levels. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Microsoft is trading between its key averages, which signals neutral price action in the near term.

MSFT

Source: Thinkorswim

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

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Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Microsoft Options

24.80%

30%

27%

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

Put IV Skew

Call IV Skew

October Options

Flat

Average

November Options

Flat

Average

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

E = Earnings Are Increasing Quarter Over Quarter

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

2013 Q2

2013 Q1

2012 Q4

2012 Q3

Earnings Growth (Y-O-Y)

11.94%

20.00%

-2.56%

-22.06%

Revenue Growth (Y-O-Y)

10.17%

17.71%

2.78%

-7.83%

Earnings Reaction

-10.85%

3.36%

0.90%

-2.91%

Microsoft has seen mixed earnings and rising revenue figures over the past four quarters. From these numbers, the markets have had mixed feelings about Microsoft’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Microsoft stock done relative to its peers – Apple, Oracle (NASDAQ:ORCL), and Google (NASDAQ:GOOG) and sector?

Microsoft

Apple

Oracle

Google

Sector

Year-to-Date Return

20.99%

-5.46%

-1.26%

25.32%

16.93%

Microsoft has been a relative performance leader, year to date.

Conclusion

Microsoft is a technology company that provides valuable software products and services to consumers and companies worldwide. Investors in the company have named their top picks for the future CEO, and the news is no surprise. The stock has not made significant progress in recent years and is now trading at mid-prices for the year. Over the past four quarters, investors have had mixed feelings about the company, as earnings have been mixed and revenues have been rising. Relative to its peers and sector, Microsoft has been a year-to-date performance leader. WAIT AND SEE what Microsoft does this coming quarter.

Tuesday, September 10, 2013

The Best MLP Investments You Can Make Today

One of the very best choices any investor can make when looking at master limited partnership (MLP) investments is going for those in the energy sector.

These MLPs offer investors both income and growth: Income through relatively high yields, and growth thanks to their involvement in America's booming energy industry.

As Money Morning Global Investing & Income Strategist Robert Hsu told readers Aug. 15, a $2,500 stake in energy MLPs 10 years ago is worth $10,000 today - twice the return of the S&P 500.

That's just the sector as a whole - that's not even just investing in the sector's best players.

For those unfamiliar with MLPs, here's what you need to know about what these investments are - and why you can't afford to leave them out of your portfolio.

Investing in MLPs

The first MLP investment started in 1981, with Apache Oil Co. Shortly after, other energy and real estate MLPs emerged. The goal was to raise capital from retail investors by offering an affordable and liquid security.

In 1987, Congress passed laws to clearly define MLP investments, which created the rules they operate under today.

To qualify as an MLP, a partnership must receive at least 90% of its income from qualifying sources. These sources include natural resource-related activities such as exploration and development, mining and production, processing, refining, storage, transportation, and marketing of a natural resource.

MLPs are traded on stock exchanges just like stocks. But instead of shares, you own units. And instead of dividends, you receive distributions.

Unlike with dividends, the majority of the income that unitholders receive is not taxed as income when received. Instead, it is considered as a reduction in the cost basis, creating a tax liability that is deferred until the units are sold.

Therefore, investing in MLPs for the long term can mean avoiding paying taxes on 80% to 90% of the distributions received.

Note: Investing in MLPs isn't the only way to accelerate your income. In fact, if you want to give your returns an extra shot in the arm, you'll sweeten your gains with these investments...

Types of MLPs

MLPs span a wide range of sectors, like coal mining, shipping, and hotels, but more than 80% are involved in the oil and gas sector.

There are two main types of oil and gas MLP investments:

Upstream MLPs: Those upstream MLPs focus on the exploration and development of oil and gas properties. This makes them a bit more risky since they are directly exposed to the fluctuations in the commodity price. However, many of these MLPs have and operate mature oil and gas fields that have long reserve lives. Midstream MLPs: The midstream segment includes the gathering, storing, transporting, and processing of oil and natural gas along with refined products. Many MLPs focus on transportation - in other words, pipelines. This is a very steady business and is the reason why MLPs are often called "toll road" businesses. Other MLPs in the sector may focus on storage and terminal facilities and processing of either oil or natural gas, which are also rather stable businesses.

The midstream is the MLP segment favored by Money Morning Global Energy Strategist Dr. Kent Moors.

What Lies Ahead for MLP Investments

With the shale boom rejuvenating the U.S. energy sector, MLP investments have been extremely profitable for investors. The total return of the broad-based Alerian MLP Index so far in 2013 is about 18.4%.

But it has been profitable for a while now. According to the Financial Times, the market capitalization of the MLP sector grew from just $8 billion in 1996 to about $480 billion today. And over the coming years, the MLP sector should grow into a trillion-dollar-plus asset class.

Income investors love their MLP investments. As of the end of June, the overall sector yielded 6.1%. And the Financial Times reported that distributions have risen 7.6% annually since the turn of the century, with income generated from MLPs doubling over the past decade.

Leonard Edelstein, portfolio manager at Yorkville Capital Management, told FT that the sector will easily return at least 10% to 15% annually to investors over the next few years. Income distributions alone from MLPs next year are forecast by Morgan Stanley to increase by 9%.

Translation: There is a lot more upside to come.

The Best MLPs

How can you find the best MLP investments today?

First, there are exchange-traded funds (ETFs) that offer a basket of MLPs.

The most liquid ETF is the Alerian MLP ETF (NYSEArca: AMLP). It tracks the Alerian MLP Index, which consists of the 50 most prominent energy MLPs.

Another MLP ETF is the Yorkville High Income MLP ETF (NYSE Arca: YMLP). Rather than weighting its constituents by market capitalization, the index this ETF is tied to targets MLPs with high yields and a strong record of growth in distributions.

Finally, there is the Global X Junior MLP ETF (NYSE Arca: MLPJ). The index it tracks follows the performance of the small capitalization segment of the MLP sector.

One of our favorite MLP investments is an energy-focused pick with a yield of 6.45%. By picking the best of the best, as Money Morning's Hsu explained, in 24 months you could be making 13.4% on every dollar you invest in today's market. Go here to learn more about one of the best MLPs to buy now.

Related Articles:

Money Morning:
How to Play by the Rules and Beat the Tax Man with MLPs Money Morning Report:
Best MLP for Income and Growth Financial Times:
Energy MLPs Tap Into US Shale Boom

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Monday, September 9, 2013

Ammunition Giant ATK Scores Bolt-On Bushnell Deal in Scopes and Optics

Alliant Techsystems Inc. (NYSE: ATK) is making what may be a game-changing acquisition. The reality is that it is a simple bolt-on merger for the company, but it opens up the company to even more business that does not simply revolve around government contracts for military orders. By purchasing Bushnell, Alliant is making its number one position in ammunition now a leader in optics and other optical accessories as well.

ATK has entered into a definitive agreement to acquire Bushnell Group Holdings for its branded sports optics, outdoor accessories and performance eyewear. If you have ever gone looking for scopes or eyewear or other optical devices for hunting or for recreational shooting, you have likely run across Bushnell as one of the key choices. With Alliant now behind the company, this likely will become an even more prominent brand.

Bushnell’s product portfolio includes laser rangefinders, trail cameras, scopes for rifles, binoculars and other hunting and shooting sports accessories. ATK is set to pay $985 million in cash, subject to customary post-closing adjustments, and this is roughly at about 10 times the projected 2013 EBITDA. ATK said that Bushnell’s projected sales for the calendar year of 2013 are roughly $600 million, yet ATJ’s expected current year sales are expected to be about $4.2 billion. The earnings boost is what matters for ATK shareholders:

ATK expects the acquisition to result in FY14 earnings per share dilution due to the stub period, transaction expenses and purchase accounting. ATK expects the acquisition to be accretive to EPS in its first full year of operations (FY15), including impacts associated with transition expenses, and estimates FY16 EPS accretion of approximately $1.00.

Now look at what the largest ammunition maker is getting for its purchase. ATK will get to acquire more than 10,000 customer accounts in over 90 countries. Again, this is not just governmental supply contracts. Bushnell has 19 outdoor brands in sports optics, outdoor accessories and performance eyewear: the Bushnell brand itself plus Primos, Bollé, Hoppe’s, Uncle Mike’s, Butler Creek and Serengeti.

What ATK investors need to consider here is that this acquisition is after the company announced in June the acquisition of Savage Sports Corp. ATK already has ammunition brands such as Federal Premium, CCI, Fusion, Speer, Estate Cartridge and Blazer. ATK also already has accessories brands BLACKHAWK!, Alliant Powder, RCBS, Champion targets and shooting equipment, Gunslick Pro and Outers gun-care products, and Weaver optics and mounting systems.

If ATK is adding $1.00 per share in earnings in 2016, that is on top of almost $9.00 per share expected in its March-2015 fiscal year. This is one of those acquisitions that just makes sense, and it helps to consolidate an industry that literally has hundreds of gear and outfit suppliers.

ATK is up 1.5% at $98.72 in early trading on Thursday, against a 52-week range of $48.67 to $103.77. Acquirers generally see their stocks drop when they announce a buyout. The $985 million compares to a current market cap of about $3.1 billion. The consensus analyst price target is only $101.82 for ATK, but our take is that this target price will ratchet up considerably based on this deal. The highest price target is $121, and that may be ratcheting higher as well.