Best Growth Stocks To Buy For 2019: April 2014

Tuesday, April 29, 2014

Edmunds: Micromanaging can stifle employees

Hi Gladys: My wife and I often debate on how to deal with employees. I say that employees can often behave like children and I have to keep my eye on them and make certain that they do things the way I want things done. I am the head of our family construction company that was started more than 50 years ago by my late father. My wife works in the administrative office of the company and she accuses me of micromanaging. According to her, employees must learn to manage themselves and my job is to tell them what their duties are and I should step back and let them do their jobs. What do you think? — A. N.

Self-management is important. Micromanaging can waste both the time and energy of the manager and ultimately can become debilitating to the employee. This combination can create a lot of tension in the workplace for all parties and will most likely spill over to your customers, clients and even vendors.

When we talk about self-management, I believe that a person's strengths and weaknesses must be taken into account. How do you identify the strengths of your employee and how do you go about developing those strengths? Keep in mind that if we want our staff to self-manage then that has to be a part of our agenda during the hiring process.

I am the first to admit that managing a company and its employees is not an easy task. And I have made my own share of blunders.

I once managed my company like the proverbial mother hen. I watched everything my employees did and found myself correcting them when it wasn't going the way I would have done whatever the job was. Thank goodness I was shown the error of my ways. One day while having lunch with an older and wiser entrepreneur who I had designated as my mentor, he mentioned his concern for my management style.

He said he had observed me communicating to my staff before leaving for lunch. And he said that if I wanted to have continued success in business I should take his comments to heart.

He said: The boss's job is to det! ermine the objectives and goals of the company. Once that's done we must lead our employees in a way that meets our goals. In leading our staff in the right direction we must understand that each person brings to the company his or her own skills and talents. And it is our job to learn what those skills are and help the employee to develop them. When you succeed in recognizing an employee's strengths and make a point to give the kind of input that helps the employee develop, everyone wins. But, when you fail to develop a staff person and not allow them a chance to do the work you eventually erode confidence.

I have never forgotten that insightful luncheon. I make a point to follow his sage advice and it has served me well.

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Management is not an easy task and there are many ways to approach it. However keep in mind that you don't want your management styles to become a roadblock between you and continued success.

Consider helping your employee to become the best that they can be and it's possible that you will see business increasing.

Gladys Edmunds, founder of Edmunds Travel Consultants in Pittsburgh, is an author and coach/consultant in business development. Her column appears Wednesdays. E-mail her at gladys@gladysedmunds.com. An archive of her columns is here. Her website is gladysedmunds.com.

Bear of the Day: Deere (DE) - Bear of the Day

Deere & CO (DE) is seeing estimates for 2014 slide deeper and as a result it is a Zacks Rank #4 (Sell). It is the Bear of the Day.A Few Recent DowngradesOver the last few weeks, a few brokerages may lowered their ratings on DE. The most recent was Piper Jaffray, which lowered their rating from Overweight to Neutral during the second week of July. That followed an even bigger call from JP Morgan in late June. The brokerage lowered their rating from Neutral to Underweight on the stock.Company DescriptionDeere makes agriculture and turf equipment, and construction and forestry equipment. Its Agriculture and Turf segment provides agriculture and turf equipment, and related service parts, including tractors; loaders; combines, corn pickers, cotton and sugarcane harvesters. Deere was founded in 1837 and is headquartered in Moline, Illinois. Earnings HistoryThe company has a relatively good history of beating the number. In each of the last two quarters they were able to post a positive earnings surprise. The two quarters preceding those were another story. Two straight misses, including one with a negative earnings surprise of more than 14% takes the luster off the two recent beats.Earnings Estimates Stuck In The MudEstimates for DE have declined of late. The 2013 estimates are moving lower, but not by that much. Peaking at $8.59 in April they have ticked lower to $8.52. But that is not where the real pessimism is. The 2014 Zacks Consensus Estimate has moved lower in each month since it reached a high of $8.93 in February. The number dipped to $8.67 in May and is now down to $8.53.The question becomes when will estimates stop falling?ValuationThe valuation picture for DE is a little mixed... with a good PE valuation and a concern over the price to book. At 10x, the multiple for both trailing and forward PE, DE compares favorably to the industry average of 14x. The 4x price to book multiple, however, is much higher than the 2.5x industry average. Price to sales is in! line with the industry average. When looking at growth rates, investors would likely be concerned by a -2.5% top line growth rate in 2013 and a 0.2% increase for 2014. Similarly, EPS growth expectations of 0.2% for 2014 do not compare favorably with the 12% industry average.The Chart The price and consensus chart really shows the story of a stock that had been a darling of Wall Street over the last few years but has recently run into trouble. The colored lines represent different years earnings estimates, and the nice 45 degree angle has not only flattened out, it has turned around. If estimates continue to decrease, the stock price will likely follow the estimates lower.

Brian Bolan is a Stock Strategist for Zacks.com. He is the Editor in charge of the Zacks Home Run Investor service, a Buy and Hold service where he recommends the stocks in the portfolio.Brian is also the editor of Breakout Growth Trader a trading service that focuses on small cap stocks and also carries a risk limiting strategy. Subscribers get daily emails along with buy, and sell alerts.Follow Brian Bolan on twitter at @BBolan1Like Brian Bolan on Facebook

Sunday, April 27, 2014

Stocks To Watch For September 30, 2013

Some of the stocks that may grab investor focus today are:

Wall Street expects Cal-Maine Foods (NASDAQ: CALM) to report its Q1 earnings at $0.36 per share. Cal-Maine shares rose 1.10% to $49.45 in after-hours trading.

The Kroger Co (NYSE: KR) named Steve McKinney as president of the Fry's Food Stores division. Kroger shares declined 0.16% to $40.62 in the after-hours trading session.

Analysts expect Diamond Foods (NASDAQ: DMND) to post a Q4 loss at $0.03 per share on revenue of $192.53 million. Diamond Foods shares gained 1.28% to $24.48 in after-hours trading.

Siemens AG (NYSE: SI) announced its plans to lower 15,000 jobs over the next year, according to news reports. Siemens shares fell 0.12% to close at $121.78 on Friday.

Paychex (NASDAQ: PAYX) is projected to post its Q1 earnings at $0.43 per share on revenue of $605.56 million. Paychex shares climbed 0.59% to $40.59 in after-hours trading.

Posted-In: Stocks To WatchEarnings News Management Pre-Market Outlook Markets Trading Ideas

Around the Web, We're Loving... Petition urges Wal-Mart, McDonald's to pay more Obama's Syria Waffle Huge Blow to US Credibility in Mideast Microsoft Buys Nokia Phone Unit for $7.2B - And CEO? What Should You Know About AMZN? Most Popular iPad Mini 2 Rumor Roundup New Surface, New Kindle Fire, Record-Breaking iPhone Sales And More From The Final Week Of September Earnings Expectations For The Week Of September 30: Walgreen, Monsanto And More Swings in Home Builder Short Interest (KBH, RYL, TMHC) Amgen Reports Phase 3 Trial Comparing Vectibix to Erbitux Meets Primary Endpoint Of Non-Inferiority Of Overall Survival ARIAD Presents Positive Phase 1/2 Trial Data on AP26113 in Patients with Non-Small Cell Lung Cancer at ECC 2013 Related Articles (CALM + DMND) Stocks To Watch For September 30, 2013 Earnings Expectations For The Week Of September 30: Walgreen, Monsanto And More Benzinga Weekly Preview: Italian Senate To Decide Berlusconi's Fate Top 4 NASDAQ Stocks In The Food-Major Diversified Industry With The Highest ROE Top 4 NASDAQ Stocks In The Food-Major Diversified Industry With The Highest EPS Top 4 Small-Cap Stocks In The Food-Major Diversified Industry With The Highest Cash View the discussion thread. Partner Network #marketfy-ae-block { display: none; border: 2px solid #0a3f75; overflow: hidden; width: 300px; height: 125px; text-align: center; background-color: #45719E; position: relative; z-index: 1; } #marketfy-ae-block a { display: block; width: 300px; height: 125px; position: relative; z-index: 2; color: #ffffff; text-decoration: none; } #marketfy-ae-block-countdown-text { color: #f9fc99; padding: 0px 0 0 0; font-size: 19px; font-weight: bold; line-height: 19px; } #marketfy-ae-block-countdown-text-start { font-size: 12px; } #marketfy-ae-block-countdown { padding: 5px 0 5px 0; font-size: 26px; } #marketfy-ae-block-signup { padding: 5px 47px; } #marketfy-ae-block-signup:hover { background-color: #457a1a; } #marketfy-ae-block #marketfy-ae-block-logo { display: block; padding: 3px 0 0 0; margin: 0; } #marketfy-ae-block-logo { text-indent: -9999px; } #marketfy-ae-block-free { display: block; position: absolute; top: 7px; right: -23px; width: 80px; height: 16px; line-height: 16px; text-align: center; opacity: 1; -webkit-transform: rotate(45deg); -moz-transform: rotate(45deg); -ms-transform: rotate(45deg); transform: rotate(45deg); font-size: 13px; font-weight: normal; color: #333333; background-color: yellow; z-index: 500; text-shadow: 1px 1px #999999; } #marketfy-ae-block-arrow { position: relative; width: 60px; height: 60px; z-index: 10; margin: -80px 0 13px -21px; } #marketfy-ae-block-arrow img { height: 60px; width: auto; } Marketfy's International
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Saturday, April 26, 2014

Week In FX Americas â€“ Forex A Yawn, Gold In Demand

The forex market is ending Friday confined to a tight range (EUR has traded 14bps in North America) which is not surprising for a week that happened to print the lowest major currency volatility in seven-years.

The market is already looking forward to Monday's European economic outlook. Setting Russia/Ukraine aside, there is only second tier data from Germany (import prices) and Italy (consumer confidence) to keep anyone interested. There is however a plethora of ECB speakers – Draghi in Bonn, while Constancio, Coeure and Praet speak in Frankfurt. The market should expect them all to tow the party line – expect talk on the outlook for policy as well as their preparedness to act now.

If one includes Russia and Ukraine into the equation, then it's gold that should catch your attention. Currently, the yellow metal is enjoying a safe-haven bid on concerns about Russian troop movements near Ukraine. Gold is currently trading north of the psychological $1,300 print. Up until now, investors had being discounting tensions in the Ukraine and focusing on better US data to push gold prices down almost -7% from last months high.

Does the metal have the stamina to go much higher? To some the metal's topside is limited due to the belief that there is little chance of the conflict spilling beyond Ukraine's borders. However, do not expect to many investors to begin offloading the commodity into the weekend due to event risk – no one wants to be caught offside if something untoward does happens to occur over the weekend. Market expects resistance at $1,308-10 and $1,317. Gold's 60-day midrange is $1,315.

Gold Rises as Ukrainian Cease Fire Ends Oil Drops Before Inventories are Expected to Rise Obama Reaffirms Japan Commitment During Visit Canadian Retail Sales Rise in February US Mortgage Applications Fall US Home Sales Drop in March US PMI Comes Slightly Under Expectations Four Experts Analyze the Impact of TPP US Vice President Offers Help to Ukraine Warns About Corruption US Fed Study Shows Unemployment Rate Still Good Indicator US House Sales Drop To 1 Year Low U.S. Dollar Holds Near Two Week High Japan-US To Resume TPP Talks Tuesday US Vice President Arrives in Ukraine

WEEK AHEAD

* GBP Gross Domestic Product
* EUR German Consumer Price Index
* USD Consumer Confidence
* EUR German Unemployment Rate
* EUR Euro-Zone Consumer Price Index
* CAD Gross Domestic Product
* USD Gross Domestic Product
* USD Federal Open Market Committee Rate Decision
* USD ISM Manufacturing
* USD Change in Non-farm Payrolls
* USD Unemployment Rate

The post Week In FX Americas – Forex A Yawn, Gold In Demand appeared first on MarketPulse.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Forex Markets

Originally posted here...

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Friday, April 25, 2014

Charles Schwab Is a Fast Growing Stock

The Charles Schwab Corporation (SCHW) is a savings and loan holding company. The company is engaged, through its subsidiaries, in securities brokerage, banking, money management, and financial advisory services. Its subsidiaries include Charles Schwab & Co. (a leading discount broker-dealer), Charles Schwab Investment Management (a mutual fund investment advisor) and Charles Schwab Bank.In this article, let's take a look at this brokerage firm and try to explain to investors the reasons this is an apparently appealing investment opportunity.The FocusThe company provides financial services to individuals and institutional clients through two segments: Investor Services and Institutional Services. The Investor Services segment provides retail brokerage and banking services to individual investors. The Institutional Services segment provides custodial, trading, and support services to independent investment advisors. The Institutional Services segment also provides retirement plan services, specialty brokerage services, and mutual fund clearing services. The company seeks to meet the financial services needs of investors, advisers and employers. It focuses on building client loyalty with the goal of attracting new clients and serving them. Additionally, Schwab´s strengths through shared core processes and technology advances which help create services that are scalable and consistent with the business.Interest Rates, Capital Structure and Debt-to-Capital RatioThe results are dependent on short-term interest rates, as 37% of its top line came from net interest income in the first quarter of 2014.The broker has been making significant efforts to become less dependent on interest rates, which we expect Federal Reserve will raise them in late 2014 or 2015. Also, the company´s plan is to reach a low-cost capital structure and targets a long-term debt-to-total financial capital ratio of less than 30%.Lucrative Derivatives Trading In 2011, the company acquired Compliance11 Inc. and optionsXpress Holdings! Inc., a leader in options and futures trading. The optionsXpress deal expands its options and futures reach, adding the retail options brokerage. This also has an impact on the company´s registered investment advisor (RIA) business. Schwab has completed a lot of takeovers since 1999, according to data compiled by Bloomberg.Analyst RecommendationThe firm is currently Zacks Rank # 2 – Buy, and it also has a longer-term recommendation of "Neutral". A Buy rating indicates that the stock, over the next 1 to 3 months, will perform at an annualized rate of 19.04%, which we think is very attractive. For investors looking for a Zacks Rank# 1–Strong Buy, Interactive Brokers Group, Inc. (IBKR), Investment Technology Group Inc. (ITG) and Piper Jaffray Companies (PJC) could be better options.Relative Valuation, Earnings and ROEIn terms of valuation, the stock sells at a trailing P/E of 35.3x, trading at a premium compared to the industry mean. Due to its revenue growth, Earnings per share (EPS) have increased in a by 60%in the most recent quarter compared to the same quarter a year ago. In the next graph we include the stock price because EPS often lead the stock price movement. As we can appreciate in the chart, the price performance was really good in the past year.Finally, I always like to see one of the most important financial ratios applying to stockholders, the best measure of performance for a firm's management: the return on equity. The ratio has increased from the same quarter one year prior. This is a clear sign of strength within the company.Let´s compare the current ratio with the peer group in the next table:

Ticker	Company Name	ROE (%)
SCHW	Charles Schwab	10.32
IBKR	Interactive Brokers Group, Inc	5.23
ITG	Investment Techn! ology Gro! up Inc.	7.45
PJC	Piper Jaffray Companies	6.14
AMTD	TD Ameritrade Holding Corporation	14.44
ETFC	E*TRADE Financial Corporation	1.77
AI	Arlington Asset Investment Corp.	8.96

Charles Schwab has a current ratio of 10.32% which is higher than the ones registered by Interactive Brokers Group, Inc., Investment Technology Group Inc., Piper Jaffray Companies, E*TRADE Financial Corporation (ETFC) and Arlington Asset Investment Corp. (AI). For investors looking for a higher ROE, TD Ameritrade Holding Corporation (AMTD) is a good option.Final CommentAs outlined in this article, we think Schwab should be a good fit in investor´s portfolios. We expect the recent move to a flat commission schedule and free trades for many of its ETFs will sustain revenues' growth.I would recommend investors to consider adding the stock for their long-term portfolios. Hedge fund gurus have also been active in the company in the fourth quarter of 2013. Gurus like Murray Stahl (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Arnold Van Den Berg (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Jim Chanos (Trades, Portfolio) and Frank Sands (Trades, Portfolio) have taken long positions on it.Disclosure: Victor Selva holds no position in any stocks mentioned.Also check out: Arnold Van Den Berg Undervalued Stocks Arnold Van Den Berg Top Growth Companies Arnold Van Den Berg High Yield stocks, and Stocks that Arnold Van Den Berg keeps buying Frank Sands Undervalued Stocks Frank Sands Top Growth Companies Frank Sands High Yield stocks, and Stocks that Frank Sands keeps buying

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Thursday, April 24, 2014

Textron Earnings Underwhelm

Textron (NYSE: TXT ) earnings came out Wednesday, and as you can probably tell from the "green" ticker, investors received them warmly. Despite revenues being down, and earnings along with them, Textron earnings still came in at $0.40 per share, and that was enough to beat estimates by a couple of pennies.

But was it enough to justify investors bidding up the shares today? That's what we're here to find out. In Q2 2013, Textron reported:

Sales from manufacturing operations of $2.8 billion, down 5.3% year over year Slightly worse revenues once finance operations were factored in, down an even 6% Net income from continuing operations of $0.40 per share, down 31%

Among the company's several business segments, the Textron systems and industrial divisions performed best, growing revenues 8.5% and 6%, respectively. Cessna and the Bell helicopter division saw lower revenues -- leading Cessna in particular to report a $50 million loss for the quarter, a reversal from last year's $35 million profit.

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Perhaps the worst news of the day, though, is the reversal in cash production. Textron consumed $274 million in negative cash flow during the fiscal second quarter. After subtracting a further $113 million spent on capital investments, the company was left with total negative free cash flow of $387 million -- again, a reversal from the year-ago positive free cash flow numbers, and focusing on manufacturing operations alone (i.e. not counting cash-burn from the finance division, free cash flow was "only" negative $362 million).

Promises, promises
In short, there's a lot to hate in the Textron earnings report. When you tally up losses to date, Textron has burned through some $787 million in total negative free cash flow so far this year. So why are investors still buying Textron shares rather than selling?

In part, it's probably the company's comments that order trends at Bell remain "strong", while growth is said to be "solid" at Textron systems and industrial division. But if you ask me, the real reason investors are sticking by Textron can be summed up in one word: promises.

Its performance so far notwithstanding, Textron continues to promise investors that it will reverse its cash-burning ways in the second half of this year, and end 2013 with positive manufacturing free cash flow (before deducting cash injections to the pension fund) of $400 million -- in essence, management is saying that it will do about $1.187 billion better in the second half of the year than it's done in the first half.

Personally, I'd prefer to see performance. With Textron shares costing upwards of 14 times earnings today, and with Textron earnings growth estimated at 10% over the next five years, the stock simply costs too much to take management's promises at face value.

Did we mention that Textron's dividend yield is also positively tiny? If you'd like to do better than getting an 0.3% dividend yield on an overpriced stock, The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here.

Wednesday, April 23, 2014

Dropping Prices So Soon, BlackBerry?

Less than four months ago, the folks at BlackBerry (NASDAQ: BBRY ) were nervously anticipating the U.S. launch of their first BB10-enabled smartphone in the touchscreen-only BlackBerry Z10. Then, late last month, the company also launched its second BB10-enabled device in the U.S. with the physical keyboard-touting BlackBerry Q10.

With both devices originally priced at $199 with a two-year contract at Verizon or AT&T -- on par with the price of Apple's (NASDAQ: AAPL ) iPhone 5 smartphones -- BlackBerry bulls had hoped the new devices would serve as a solid starting point to help their stock regain at least some of its former glory in its well-publicized fight back to sustained profitability.

Unfortunately, shares of BlackBerry suffered a one-day drop of more than 27% a few weeks ago, after the company posted dismal quarterly earnings, in which they announced that just 2.7 million of the 6.8 million total smartphone units shipped last quarter featured its BB10 operating system.

Money talks
And though BlackBerry's CEO begged for patience at last week's shareholder meeting, effectively telling analysts at the time that none of the metrics they're using to gauge BlackBerry's success actually show how it could create shareholder value over the long term, The Wall Street Journal this week astutely noticed that prices for the Z10 are already falling.

Sure enough, if you take a peek at your local Verizon or AT&T store, you'll find the Z10's contract price has just been cut in half to $99.

What's more, consumers who take the time to look around will find that Amazon.com is now offering the Z10 with a two-year AT&T contract for just a penny, and Best Buy is now willing to give it to you for free.

And while the Q10 still goes for $199 when purchased directly through Verizon and AT&T, you can also pick it up from Amazon.com with a Verizon contract for a mere $99.

For reference, Apple's iPhone 5, which was launched in September, 2012, is still $199 at all major carriers, and the older iPhone 4S, launched in October, 2011, still sells for $99. Then again, Apple's even older iPhone 4, like the Z10, can be had for free with a contract through Verizon or AT&T, but that's no surprise since the iPhone 4 was released more than three years ago -- and remember, as I wrote back in April, around half of the 4 million iPhones Verizon sold last quarter were either Apple's iPhone 4 or 4S models.

Call me crazy, but that certainly doesn't seem to bode well for those hoping BlackBerry's Z10 and Q10 sales would pick up going forward, especially considering Apple may be gearing up to roll out its next line of iDevices this fall, the plans for which could very well include a cheaper version of the iPhone to grab market share outside Apple's existing wheelhouse in higher-end devices.

Of course, The Wall Street Journal also noted that a BlackBerry spokesman already issued a statement regarding the new prices, saying that "now is the right time to adjust the price" of the Z10 as BlackBerry readies its next round of BB10 devices.

In addition, the statement elaborated: "It's part of life cycle management to tier the pricing for current devices to make room for the next ones. This is just one element of our marketing strategy that will ensure we remain aggressive in a very competitive market landscape."

Competitive indeed.

But however they try to spin it, I'm sure I'm not alone in remaining unconvinced that this is nothing more than a reaction to a continuation of worsening sales results for BlackBerry.

Foolish takeaway
Sure, BlackBerry CEO Thorsten Heins rightly pointed out last week that BlackBerry is more than just a device company, and a there's a chance the BlackBerry Messenger platform could provide some value even as the company's smartphone sales wane. However, as fellow Fool Evan Niu noted yesterday, the success of BBM is far from assured, as it has plenty of competition of its own.

In the end, while BlackBerry's $3.1 billion cash balance offers a compelling reason to buy given the company's $4.8 market capitalization, all that dough won't mean much over the long run if BlackBerry can't stem its market-share losses soon.

Truth be told, if you really want to get in on the smartphone phenomenon, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it. But it stands to reap massive profits no mater who ultimately wins the smartphone war. To find out what it is, click here to access the "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further."

Tuesday, April 22, 2014

Comcast Earnings Get a Boost from Sochi Olympics

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Earns Comcast Gene J. Puskar/AP PHILADELPHIA -- Comcast said Tuesday that its first-quarter net income rose by 30 percent as ad revenue surged at broadcast network NBC, helped by the Winter Olympics in Sochi and Jimmy Fallon's elevation as host of "The Tonight Show." The results beat Wall Street estimates and its shares edged up in morning trading. Comcast (CMCSA) is the largest cable company in the country with 22 million video customers and 21.1 Internet customers. It is in the midst of an expected yearlong review of its $45 billion acquisition of No. 2 rival Time Warner Cable (TWC). Regulators are examining whether the combination would give it undue pricing power over customers and too much leverage with programmers. Its net income in the quarter through March rose to $1.87 billion, or 71 cents a share, from $1.44 billion, or 54 cents a share a year ago. Excluding one-time items, adjusted earnings came to 68 cents a share, beating the 64 cents expected by analysts polled by FactSet. Revenue grew 14 percent to $17.41 billion from $15.31 billion. That's also higher than the $16.99 billion expected by analysts. NBCUniversal revenue grew 29 percent to $6.88 billion while cable services revenue grew 5 percent to $10.76 billion. Olympics broadcast rights boosted NBCU revenue by $1.1 billion. Even excluding the games, broadcast revenue rose 17 percent, helped by Fallon's selection for NBC's late night slot, replacing longtime host Jay Leno. The network was also boosted by more hours of "The Voice" and the popularity of new shows like "The Blacklist." On the cable connections side, Comcast added 24,000 video customers during the quarter, the second quarterly gain in a row following a six-and-a-half year losing streak. However, those gains are likely to come to an end in the current quarter as college students disconnect service at the end of the semester. Comcast added 383,000 high-speed data customers and 142,000 voice customers. The company says the roll-out of its newest X1 set-top box is starting to contribute to better video results. It is now setting up 15,000 to 20,000 boxes a day, up from 10,000 at the end of the year. An improved user interface is helping reduce customer disconnects while boosting video-on-demand spending and increasing uptake of digital video recorder service. Within three years, Comcast hopes the majority of its customers will have X1. Comcast shares rose $1.03, or 2.1 percent, to $50.91 in morning trading. Its shares have fallen 4 percent in regular trading so far this year.

Monday, April 21, 2014

UAW drops NLRB case to organize Volkswagen

Workers on the VW assembly line in Chattanooga.

NEW YORK (CNNMoney) The United Auto Workers has dropped its challenge of a vote to organize workers at Volkswagen's only U.S. plant that went against the union.

The National Labor Relations Board was set to start a hearing Monday on the UAW's complaint that Republican politicians improperly interfered before the Feb. 14 vote at the Chattanooga, Tenn. plant, which the union lost 712 to 626.

But the union issued a statement Monday saying it was dropping its appeal because fighting the election through the NLRB could have dragged on for years.

"The UAW is ready to put February's tainted election in the rear-view mirror," said UAW President Bob King in a statement.

The union said even if the NLRB ordered a new election -- the board's only available remedy under current law -- nothing would stop politicians and anti-union organizations from again interfering.

But some experts had suggested that the union stood little chance of winning a new vote, even if the NRLB ruled in its favor.

"Most people thought they'd win the first time around," said Gary Chaison, professor of industrial relations at Clark University. "I think the chances of winning a second vote will be more difficult than winning the first vote."

Sen. Bob Corker, R-Tenn., one of the politicians the UAW accused of improperly interfering in the election, also claimed the union was dropping its effort because it knew it couldn't win a new vote.

"This 11th hour reversal by the UAW affirms what we have said all along -- that their objection was nothing more than a sideshow to draw attention away from their stinging loss in Chattanooga," he said.

The UAW's efforts to organize nonunion plants is seen as crucial to its long-term survival.

So far the UAW has been limited to representing plants operated by U.S. automakers General Motors, (GM, Fortune 500) Ford Motor (F, Fortune 500) and Chrysler Group, as well as their suppliers. Plant closings over the last 15 years have cut into UAW membership. Meanwhile, automakers from Asia and Europe have opened more than 30 plants in the United States, and more than two-thirds of those plants are in the South.

Unlike most employers facing a union-organizing election, Volkswagen had stayed neutral on the vote. It even seemed to be encouraging workers to vote for the union, saying it hoped to set up a "works council" to improve productivity at the plant.

VW, which has German union members on its board, uses works councils at most of its plants worldwide. But U.S. labor law makes such councils difficult without an independent union in place

But Corker, Tennessee Gov. Bill Haslam and other leading Republican elected officials suggested that if the union won the organizing election it would scare away other companies looking at opening factories in the state, where unions are relatively rare. There were even threats that the state would deny VW $300 million in tax breaks it is seeking to expand the plant if the union won the vote.

The UAW says it will ask Congress to examine the use of federal funds in the state's incentives threat.

"Frankly, Congress is a more effective venue for publicly examining the now well-documented threat," King said.

Chaison said it could cause problems for the UAW and other unions should the NLRB rule politicians can't weigh in on labor disputes such as organizing efforts or strikes.

"If opponents of the union can be told to refrain from interfering, friends of the union can be told the same thing," he said. "Chattanooga is an unusual place for unions to organize. Most of the places where unions would organize -- places like New York, Las Vegas or Detroit -- politicians would stand in line to support ! a union. ! That would provide ammunition to employers to object if they lost an organizing vote."

Opponents of the union say the workers decided on their own that they didn't want or need the union. Workers at the VW plant make roughly $19 an hour, compared with about $26 to $28 an hour for veteran hourly workers at the Detroit automakers, although new hires at the unionized plants are making closer to $17.

Sunday, April 20, 2014

U.K.â€™s FTSE 100 Posts Biggest Weekly Loss in 13 Months

U.K. stocks declined for a third day as the benchmark FTSE 100 Index (UKX) posted its biggest weekly loss in 13 months.

Royal Bank of Scotland Group Plc (RBS) slipped 7.2 percent for the worst performance on the FTSE 100. Marks & Spencer Group Plc (MKS) paced a decline among retailers. BT Group Plc (BT/A) climbed 1 percent after Citigroup Inc. raised its recommendation on the shares.

The FTSE 100 Index fell 43.34 points, or 0.7 percent, to 6,116.17 at the close in London, reversing an earlier gain of as much as 1.4 percent. The gauge fell 3.1 percent this week as Federal Reserve Chairman Ben S. Bernanke said on June 19 the bank may end monthly bond purchases next year if the U.S. economy improved in line with forecasts. The FTSE All-Share Index lost 0.7 percent today, while Ireland's ISEQ Index added 0.2 percent.

"The latter part of today's session suggests that the selling isn't done yet," Chris Beauchamp, a market analyst at IG in London, wrote in a note. "Markets in both the U.K. and U.S. initially opened in positive territory. However, the fall back into the red is a sign that the negative feelings from Wednesday's Fed meeting haven't dispersed just yet."

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The volume of shares changing hands in companies listed on the FTSE 100 was 72 percent higher than the average of the past 30 days, according to data compiled by Bloomberg.

Money Markets

China's benchmark money-market rates tumbled from record highs in Shanghai, according to a daily fixing compiled by National Interbank Funding Center. The drop of 4.42 percentage points, to 8.43 percent was the biggest drop since October 2007.

The People's Bank of China added funds to the financial system via short-term liquidity operations yesterday, according to Hao Hong, chief China strategist at Bank of Communications Co. in Hong Kong.

RBS fell 7.2 percent to 281.7 pence. The state-controlled lender has tumbled 13 percent for the biggest three-day drop in almost a year since U.K.'s Chancellor of the Exchequer George Osborne said the Treasury will "urgently" investigate the case for breaking up RBS and spinning off its toxic assets into a "bad bank."

Marks & Spencer Group Plc declined 2.7 percent to 418.2 pence after Credit Suisse Group AG reiterated an underperform rating on the shares, saying the retailer faces increased competition.

A gauge of retailers on the FTSE 350 Index fell 1 percent. J Sainsbury Plc slid 1.9 percent to 358 pence and Kingfisher Plc dropped 1.4 percent to 332.5 pence.

BT Upgrade

BT added 1 percent to 307.4 pence as Citigroup upgraded the shares to buy from neutral, citing increased cost savings and potential for faster dividend growth from its sports channels. Thirteen percent of U.K. households are prepared to change their broadband supplier or pay more to receive BT Sport channels, the brokerage said, citing its survey of 1,365 homes.

ITV climbed 0.9 percent to 137.4 pence after Citigroup raised its 12-month price estimate to 175 pence from 150 pence and reiterated a buy rating.

Al Noor Hospitals Group Inc. closed at 575 pence on its first day of trading in London, the same price the Abu Dhabi-based provider of health-care services sold 38.5 million shares to raise 221 million pounds ($341 million).

Saturday, April 19, 2014

Why Intel's Big Plans Are Beating the Dow's Drop

The markets are moving sluggishly to open this week of investing. The Dow Jones Industrial Average (DJINDICES: ^DJI ) is taking a breather after last week's wild up-and-down ride, and Intel (NASDAQ: INTC ) stock has taken an early lead on the index. The U.S. economy got some good news earlier in the day when ratings firm Standard & Poor's upgraded the American credit outlook from "negative" to "stable." The agency added in a warning that it expects future fiscal issues, such as the debt ceiling, to remain politically divisive in the future, which could hurt economic decision-making going forward.

Let's take a look at why investors are cheering Intel on today.

Intel embraces the future
Intel's shares have picked up 1.6% as of 2:30 p.m. EDT to lead the Dow higher, and a recent slate of good news from the company has investors thinking optimistically. The chip maker scored a huge win recently when electronics maker Samsung chose Intel to provide chips for its Galaxy Tab 3 10.1 phone -- a giant step forward for the company, whose rivals have raced past it in the mobile industry. Intel already boasts chips in a number of tablets set to arrive across the mobile sphere, and the phone market will provide the last entry point this company needs to become a major mobile player.

If Intel can solidify a deal with Samsung and firm up that relationship for the future, it will be well-placed to capitalize on one of the biggest mobile-producers on the market. It helps that Intel's newest processors have received high praise: ABI Research analysts offered strong approval of the company's latest Atom processor, saying it performs well against rival products from Qualcomm (NASDAQ: QCOM ) and others.

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Considering that Qualcomm has long been one of the most dominant chip-makers in the mobile industry and is perhaps Intel's most significant competitor in the market, Intel will need to keep this outperformance up. Qualcomm won't sit and watch as its rival dazzles the mobile market. The firm's Snapdragon 600 line of chips has impressed major phone-makers such as Samsung and HTC, and Stene Agee analyst Vijay Rakesh reported to ZDNet that Qualcomm could capture up to 70% of the chip-making for Samsung's Galaxy S4s.

Intel won't be able to catch up to Qualcomm immediately, but the company is also making inroads in other areas as it pivots away from the declining PC market's. The company continues to explore developing a TV business, and Intel has made waves by offering to pay considerably more to media providers than traditional cable businesses. While Intel is expected to pay more, considering that it's still in the start-up phase and lacks viewership, a significant premium could be enticing to media developers looking for a new niche. Intel plans to launch the business later this year, but if it can't hammer out deals with enough major content-providers by that time, it'll have to push back plans until 2014.

Will it work? Intel's plans are still developing, so it's too early to say whether or not the company will succeed in competing with the likes of Google TV or Apple TV. Investors should keep an eye on the developments, however, as Intel's post-PC plans will drive the future of this company.

When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, Intel must find new avenues for growth. In this premium research report on Intel, a Motley Fool analyst runs through all of the key topics investors should understand about the chip giant. Click here now to learn more.

Thursday, April 17, 2014

CollabRx + Affymetrix = Wow! (AFFX, CLRX)

They say you're known by the caliber of company you keep. If that's true for stocks (and it is), then CollabRx Inc. (NASDAQ:CLRX) has a lot to be proud of with its new partnership with Affymetrix, Inc. (NASDAQ:AFFX). On the flipside, Affymetrix should be honored it's inked a deal with CollabRx. In a combination that hasn't been topped since peanut butter and chocolate hooked up to form a Reese's cup, AFFX and CLRX help bring out the best in each other.

Affymetrix, Inc. is a medical diagnostics name. Specifically, AFFX is a "pioneer in microarray technology and a leader in genomics analysis, Affymetrix now develops and provides innovative technologies that enable multiplex and parallel analysis of biological systems at the cell, protein, and gene level, facilitating the rapid translation of results into biology for a better world" Translation: AFFX makes variety of high-functioning tests that can spot very specific forms of cancer.

As for CollabRx, it's aiming to "combine the power of proprietary cloud-based expert systems with insights from the nation's top clinical experts. This approach to molecular medicine provides physicians, patients and researchers with the ability to rapidly and accurately identify relevant drugs, clinical trials, diagnostics, medical tests and therapies associated with specific genetic profiles." In other words, CLRX helps caregivers and diagnostic companies make more sense out of the mountain of information that's now being created by the medical industry's ability to perform genome testing. The primary means of doing that is by leasing access to its curated website, which collects and presents that information in a concise and useful way to caregivers.

Great, but what do the two have to do with one another? Alone, each are potent game-changers in their own way. As a team, however, they can offer a product to the medical community that can't be matched by any other service or tool out there.

And that's exactly what AFFX and CLRX have done.... joined forces.

More specifically, the partnership will optimize the use of CollabRx's Genetic Variant Annotation Service in connection with Affymetrix' OncoScan FFPE Assay Kit and CytoScan Cytogenetics Suite, for the analysis of gene copy number variation in cancer research. In other words, the diagnostics guru and the informatics genius are going to enhance what the other one does by delivering a unified product to their customers.

The need and the market are certainly "there." Over the past twelve months, more than 100,000 research reports on the topic of cancer and cancer treatments have been published. Stirring the pot even further is the fact that there are over 500 new cancer therapies in development, and those drugs are part of more than 10,000 different clinical trials underway. That's on top of what we already know about cancer therapies, and on top of approved drugs that make up the current standard treatment regimen. It's mind-boggling, and it would be impossible for anyone to stay abreast of all the options a cancer patient may have. CollabRx and Affymetrix can solve that problem - and just did - in one fell swoop.

For more on CollabRx, visit its corporate website here. Or, you can read the SCN research report here, or the SCN recommendation here.

Wednesday, April 16, 2014

Bitcoin exchange Mt. Gox to liquidate, court rules

Mt. Gox, the Tokyo-based Bitcoin exchange that collapsed earlier this year after $425 million worth of its customers' digital currency disappeared, lost its bid to reorganize and will likely be liquidated, a Japanese bankruptcy court administrator said in a notice Wednesday.

The court will also investigate Mt. Gox CEO Mark Karpeles' liability in the collapse of the business, attorney Nobuaki Kobayashi, the court-appointed administrator, said Wednesday in a notice posted on the Bitcoin exchange's website.

Karpeles on Feb. 28 asked a Tokyo bankruptcy court for protection from its creditors while it restructured and reorganized.

Mt. Gox claimed in February that the digital wallets that stored the Bitcoin had been hacked and 850,000 Bitcoin were lost. The company later said it discovered 200,000 Bitcoin in an unused wallet, reducing the lost Bitcoin to 650,000.

A week later, Flexcoin, another Bitcoin exchange, shut down, claiming hackers "robbed" the company of all 896 of its bitcoins valued at $600,000.

The court dismissed Mt. Gox's rehabilitation application Wednesday as too "difficult for the company to carry out," Kobayashi said.

Karpeles "has lost his authority to administer the company's assets," the attorney said.

Once the bankruptcy proceedings begin, court administrators and other experts will examine the company's assets, investigate the disappearance of the Bitcoin and distribute the company's remaining assets among its creditors, the attorney said.

"I will strive to fairly and equitably administer the company's assets," Kobayashi wrote in the notice. He said he would work with the U.S. bankruptcy court, where the company has also filed for relief. A creditors' meeting has not yet been set, he said.

Although the court has not entered its final bankruptcy ruling, Kobayashi said once the bankruptcy proceedings start, "it will be unlikely that the company can restart the exchange."

Karpeles, in a note posted Wednesday on the Mt. Gox website! , said the company had "no prospects for the restart of the business."

The dismissal of the company's application for rehabilitation "created great inconvenience and concerns to our creditors, for which we apologize," the note said.

Follow @DonnaLeinwand on Twitter.

Tuesday, April 15, 2014

WrestleMania 30 Reaches Record 1 Million Households

NEW YORK (TheStreet) - More than 1 million households watched World Wrestling Entertainment's (WWE) WrestleMania 30 marking it the first time that the wrestling fan-favorite event "eclipsed" that number domestically, WWE said on Tuesday.

As a result, WWE feels "confident" it will reach its goal of 1 million subscribers on its February-launched WWE Network streaming network by the end of 2014. WWE Network currently has more than 667,000 subscribers in the U.S. WWE also had nearly 400,000 domestic pay-per-view buying homes for WrestleMania 30.

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WWE launched the WWE Network in late February. The over-the-top (OTT) service purely for wrestling fans is akin to Netflix (NFLX). It costs $9.99 a month and includes access to all of the live and scheduled programming, including all 12 live pay-per-view events, like WrestleMania, as well a video-on-demand library. Viewers can watch the WWE Network via Apple (AAPL) TV, Roku streaming devices, Sony PlayStation 3, Sony PlayStation 4 and Xbox 360. WWE Network is also available on the WWE app, which is available on iOS devices and Amazon's (AMZN) Kindle Fire devices and Google (GOOG) Android devices, as well as on desktops and laptops via WWE.com.

WWE Network successfully streamed six hours of live coverage of WrestleMania 30 on Sunday, April 6. Additionally, more than 7.1 million hours of video content was viewed on WWE Network during WrestleMania Week from Tuesday, April 1 through Tuesday, April 8, the entertainment company said. The streaming service is expected to be rolled out in Canada, the U.K., Australia, New Zealand, Singapore, Hong Kong and the Nordics in late 2014/early 2015, the company said. Stamford, CT.-based WWE will report its first-quarter earnings results on May 1. --Written by Laurie Kulikowski in New York. Follow @LKulikowski

Stock quotes in this article: WWE

Monday, April 14, 2014

Dow Soars On Visa's Jump, But Will MasterCard Win the Card Wars?

The Dow Jones Industrials (DJINDICES: ^DJI ) soared 132 points by 12:30 p.m. EDT, as all but a handful of blue-chip stocks gained on good news from the retail sales front. With the measure of spending activity climbing by the largest amount in a year and a half, the news was definitely positive for Visa (NYSE: V ) , which led all 30 Dow components with a 2.4% rise. Yet rival MasterCard (NYSE: MA ) gained an even more impressive 4%, and investors are uncertain over how the companies' battle will play out over the long run.

This morning's jump in Visa and MasterCard came from positive comments from analysts, with MasterCard getting an upgrade while Visa was given an initial rating of outperform. Despite fears about the impact of the weather on spending activity during the first quarter, the combination of this morning's retail sales figures and other data on card spending specifically support the idea that earnings for the two card giants for this period won't be as sluggish as many shareholders had worried. Yet the question many investors still have is whether Visa can keep ahead of MasterCard, given MasterCard's bigger push on the international front recently.

Source: Visa.

Stoking controversy
Both Visa and MasterCard face plenty of common challenges. One of the biggest comes from the retail industry, where several big-box companies chose to back out of the $6 billion settlement that MasterCard and Visa agreed to with most of the retail community. Visa is already facing one big-box retail lawsuit in the aftermath of the settlement, and MasterCard will likely also eventually find itself named as a defendant in litigation. With the companies having roughly the same business model and engaging in many similar practices, they are likely to face corresponding legal arguments in any lawsuits.

Between the two, though, MasterCard has a reputation for having a higher-risk, higher-reward profile. Its valuation is higher, reflecting the greater potential for growth compared to Visa. MasterCard has also arguably worked harder to bolster its reputation worldwide, leaving Visa with at least slightly more exposure to the U.S. market.

At the moment, Visa's domestic focus appears to be the winning strategy. Across the globe, international economies are struggling, with China's growth slowing and policymakers in Europe and Japan considering draconian measures to stimulate economic growth. Meanwhile, in the U.S., the Federal Reserve has been able to pull back on its stimulus measures, with figures such as today's retail sales data showing just how strongly the domestic economy is behaving right now.

The key to the future for the top payment processors is whether Visa follows MasterCard's lead to emphasize international markets more strongly. Visa certainly isn't abandoning the global field, with moves to boost cross-border volume and enhance brand-awareness worldwide. If those forays prove adequate, Visa might well hold on to its advantage without further effort. In all likelihood, though, it'll take a more active response from Visa to ensure that MasterCard doesn't take over its No. 1 spot in the long run.

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Sunday, April 13, 2014

What Should You Do If You Knew a Market Correction Was Coming?

Over the past few years, we've all seen a number of analysts, experts, and wealthy admired investors call for a market correction. Whether you believe the predictions are correct or not, you still have to wonder: What should you do to prepare yourself when a correction does come along?

Preparation
When preparing your portfolio for a correction, you should first confirm that your initial investing thesis for each holding remains intact. Always have an investing thesis in mind when you buy, and keep it handy so you can review it when you're wondering how that thesis is holding up. Knowing why you purchased a stock and learning from both good and bad decisions you've made will not only help you make better chooses, but it will also increase your overall returns.

If any of your investing theses have fallen apart or played out, you then need to decide whether you should sell, or determine whether a new reason to continue holding shares has presented itself. Only during this review period is it wise to sell.

Next, determine whether your positions are still equally weighted or whether some have become too large of a percentage of your portfolio. If you own 10 stocks and each one represented 10% of your portfolio when you bought them, but now one stock has doubled while the others increased by 15%, you'll want to consider paring back the holding that doubled, bringing it back into alignment with the other stocks in terms of dollar value. Doing so ultimately lowers your risk, so that if that one stock bombs in the coming months, your total portfolio won't take such a massive hit. But before you make any selling decisions, you first need to decide what percentage is too large for any one holding to become.

Now that you've done a lot of selling, you can start buying. With the proceeds from your big winners and the stocks you no longer have a good investing thesis for, you can either purchase additional shares of current holdings, buy new stocks you've been watching, or hold the cash until the predicted correction hits and buy stocks at cheaper prices than they're currently selling for.

But as I hinted at, the pundits are constantly calling for a pullback -- and in some ways, they're always correct. My colleague Dan Caplinger recently commented that over the past 100 years, the market experiences on average a 5% correction three times per year, a 10% correction once annually, and a 20% correction once every three and a half years.

Based on these figures, you should review your positions once every four months to be safe. I'd also suggest checking in toward the end of earnings season, so that any information you decide to act on is current.

So what should you do if you knew the Dow Jones (DJINDICES: ^DJI ) and S&P 500 (SNPINDEX: ^GSPC ) was going to drop 5% or 10% tomorrow? Well, in one sense we all know a correction is coming. It's inevitable that the market will reverse course and head lower in the coming months or years. So if you're performing this kind of portfolio review regularly, then besides buying stocks with your extra cash after prices fall, the best thing to really do is ... do nothing. Don't panic. And by all means, don't sell. Sit back and relax, read the morning paper, sleep well at night, and know deep down that your money is safe and that the market will once again rebound and your assets will soon continue their appreciation journey.

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Friday, April 11, 2014

5 Stocks Under $10 Set to Soar

Delafield, Wis. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 a share or less don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous coin on a regular basis.

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Just take a look at some of the hot movers in the under-$10 complex from Thursday, including James River Coal (JRCC), which is ripping higher by 16%; Bio-Path (BPTH), which is soaring higher by 15.5%; Rentech (RTK), which is ripping to the upside by 13%; and Supercom (SPCB), which is surging to the upside by 12%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

Low-priced stocks are something that I tweet about on a regular basis. I frequently flag high-probability setups, breakout candidates and low-priced stocks that are acting technically bullish. I like to hunt for low-priced stocks that are showing bullish price and volume trends, since that increases the probability of those stocks heading higher. These setups often produce monster moves higher in very short time frames.

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When I trade under-$10 names, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 names with a catalyst, but that's secondary to the chart and volume patterns.

With that in mind, here's a look at several under-$10 stocks that look poised to potentially trade higher from current levels.

Golden Minerals

One under-$10 basic materials player that's starting to trend within range of triggering a near-term breakout trade is Golden Minerals (AUMN), which is engaged in mining, construction and exploration of mineral properties. It explores for gold, silver, zinc, lead and other minerals. This stock has been on fire so far in 2014, with shares up a whopping 101%.

If you take a glance at the chart for Golden Minerals, you'll see that this stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of 82 cents per share to its intraday high of 96 cents per share. During that uptrend, shares of AUMN have been consistently making higher lows and higher highs, which is bullish technical price action. Shares of AUMN are now starting to push within range of triggering a near-term breakout trade above some key overhead resistance levels.

Traders should now look for long-biased trades in AUMN if it manages to break out above its 50-day moving average at 97 cents per share and then once it takes out more resistance at $1 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 467,932 shares. If that breakout hits soon, then AUMN will set up to re-test or possibly take out its next major overhead resistance levels at $1.14 to $1.28 a share. Any high-volume move above those levels will then give AUMN a chance to tag $1.50 to $1.60 a share.

Traders can look to buy AUMN off weakness to anticipate that breakout and simply use a stop that sits right around some near-term support levels at 85 to 82 cents per share. One can also buy AUMN off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Iamgold

Another under-$10 gold mining player that's starting to trend within range of hitting a big breakout trade is Iamgold (IAG), which explores, develops and operates gold mining properties. The company also explores for silver, niobium and copper deposits. This stock is off to a decent start so far in 2014, with shares up by 9.5%.

If you take a look at the chart for Iamgold, you'll notice that this stock recently formed a triple bottom chart pattern at $3.37, $3.41 and $3.42 a share. Following the most recent test of those support levels, shares of IAG have started to uptrend a bit and move within range of triggering a big breakout trade above some key near-term overhead resistance levels.

Market players should now look for long-biased trades in IAG if it manages to break out above some near-term overhead resistance at $3.70 to its 50-day moving average of $3.76 a share and then once it clears more resistance at $3.88 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 6.52 million shares. If that breakout kicks off soon, then IAG will set up to re-test or possibly take out its next major overhead resistance levels at $4.35 to its 200-day moving average of $4.42 a share.

Traders can look to buy IAG off weakness to anticipate that breakout and simply use a stop that sits right below those triple bottom support levels. One can also buy IAG off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Great Panther Silver

One under-$10 silver mining player that's starting to move within range of triggering a near-term breakout trade is Great Panther Silver (GPL), which is engaged in the mining of mineral properties in Mexico. The company explores for silver, gold, lead and zinc. This stock is off to a hot start in 2014, with shares up sharply by 53%.

If you consult the chart for Great Panther Silver, you'll see that this stock recently formed a double bottom chart pattern at 99 cents to $1.01 a share. Following that bottom, shares of GPL have started to uptrend and the stock is now flirting with its 50-day moving average at $1.11 a share. That move is quickly pushing shares of GPL within range of triggering a near-term breakout trade above some key overhead resistance.

Traders should now look for long-biased trades in GPL if it manages to break out above its 50-day moving average of $1.11 a share and then once it takes out more near-term overhead resistance at $1.13 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 954,118 shares. If that breakout gets underway soon, then GPL will set up to re-test or possibly take out its next major overhead resistance levels at $1.26 to $1.35 a share, or even its 52-week high at $1.38 a share.

Traders can look to buy GPL off weakness to anticipate that breakout and simply use a stop that sits right around those double bottom support levels. One can also buy GPL off strength once it starts to bust above those key resistance levels volume and then simply use a stop that sits a comfortable percentage from your entry point.

Silvercorp Metals

Another under-$10 silver mining player that's starting to push within range of triggering a big breakout trade is Silvercorp Metals (SVM), which together with its subsidiaries, engages in the acquisition, exploration, development and mining of precious and base metal properties in China and Canada. This stock has been rocked by the bears over the last six months, with shares off by 32%.

If you take a glance at the chart for Silvercorp Metals, you'll notice this stock has been downtrending badly for the last two months, with shares falling sharply from its high of $3.29 to its recent low of $1.87 a share. During that downtrend, shares of SVM have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of SVM have started to bounce off that $1.87 low and it's starting to break out above some near-term overhead resistance at $2.03 a share. That move is starting to push shares of SVM within range of triggering an even bigger breakout trade.

Market players should now look for long-biased trades in SVM if it manages to break out above some key near-term overhead resistance levels at $2.15 to $2.20 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.30 million shares. If that breakout starts soon, then SVM will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $2.38 a share to its 200-day moving average of $2.77 a share.

Traders can look to buy SVM off weakness to anticipate that breakout and simply use a stop that sits right below its recent low of $1.87 a share. One can also buy SVM off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Desarrolladora Homex 

One final under-$10 residential construction player that's starting to trend within range of triggering a major breakout trade is Desarrolladora Homex (HXM), which is a vertically integrated home development company, engages in the development, construction and sale of affordable entry-level, middle-income and tourism housing in Mexico, as well as affordable entry-level housing in Brazil. This stock has been in play with the bulls so far in 2014, with shares up sharply by 34%.

If you take a look at the chart for Desarrolladora Homex you'll notice that this stock formed a double bottom chart pattern over the last month and change, with shares finding buying interest $1.23 to $1.24 a share. Since that bottom, shares of HXM have started to uptrend and moved within range of triggering a major breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in HXM if it manages to break out above its 50-day moving average of $1.62 and then once it clears more key near-term overhead resistance levels at $1.63 to $1.68 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 730,702 shares. If that breakout materializes soon, then HXM will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $1.80 to $2.20 a share, or even $2.40 a share.

Traders can look to buy HXM off weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support at $1.40 a share. One can also buy HXM off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

To see more hot under-$10 equities, check out the Stocks Under $10 Setting Up to Explode portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

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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.

Hodges: Favorite for Small-Caps

Every year, I make a habit of poring over the performance data for the previous year, looking for the best mutual funds; from this, I do have a favorite buy, says Tom Bishop, editor of BI Research.

Suppose I were to tell you that I have found a small-cap focused fund—which is, after all, BI Research's niche in the investment world—that was in the top 25% of funds for 2013, and for 2012, and 2011, and 2010, and 2009, and gained 381% in the current bull market (versus the S&P's 178%), while doing no worse than the market in 2008.

Suppose it was also rated 5-stars overall by S&P, and 5-stars for the past three years, and 5-stars for the past five years. Would you be interested? Well, wouldn't you know! I have found just such a fund: the Hodges Small Cap Fund (US:HDPSX).

Hodges Mutual Funds runs seven funds in all but five are very small, or even, brand new. The flagship fund, started in 1992, is simply called the Hodges Fund (multi-cap) named after Don Hodges, the founder, and has about $355 million in assets.

But it has not gone unnoticed that their small-cap fund has had a barn-burner track record and it's holding a total $920 million (up from $286 million, just a year ago).

The fund is focused on both growth and value small-cap stocks using rigorous fundamental analysis to find opportunities that may be missed or misunderstood by more conventional approaches.

In the vein of buying what you know, nearly a third of this Dallas-based management team's stocks are located in the Texas area where they can easily kick the tires. Scanning down the list of 80 stocks, I feel at home. I now own, have owned, or recently thought of buying many of these.

Top Industrial Disributor Companies To Own In Right Now

The fund is still open to new investors. I know, because I just bought some and just checked the Web site. But, at a certain point, good funds do close and you can only invest after that if you already own it in a given account. So keep that in mind.

Subscribe to BI Research here…

Thursday, April 10, 2014

'My girlfriend is a tax break'

Wes Fusco claimed his girlfriend as a dependent and received a tax break of more than $3,000.

NEW YORK (CNNMoney) If you're in a relationship with someone who is dependent on you financially, you might be able to claim them as a tax break.

Wes Fusco, a 35-year-old from Manitowoc, Wisc., had been financially supporting his girlfriend, Danielle Wissbroeker, for more than 10 years. While she took care of their three children and earned no income, Fusco paid the bills and covered her expenses.

But Fusco had no idea that this situation would translate into a tax break until his tax preparer told him that claiming Wissbroeker as a dependent could cut his tax bill by thousands of dollars.

His tax preparer, enrolled agent Don Wollersheim, was right. Girlfriends -- and boyfriends -- can qualify as dependents as long as certain requirements are met.

First, your significant other must earn less than $3,900 per year and live with you throughout the year. You must also pay for more than half of their expenses and they can't be claimed as a dependent by someone else.

If they meet those criteria, then claiming them as a dependent will result in an exemption of up to $3,900. Fusco said he qualified for the full exemption and that this tax break, along with being able to claim his children as dependents, allowed him to receive a refund of more than $8,000 each year for the 10 years he supported his girlfriend.

Fusco and Wissbroeker broke up last May, so this will be the first time in a decade that he can't claim her as a dependent.

One Orlando, Fla., woman used this same strategy, claiming her unemployed boyfriend as a dependent after supporting him for years while he hunted for a job. She also received the full $3,900 exemption.

But these situations are rare. It's typically difficult for a couple to qualify for this deduction because of all the requirements that need to be met -- especially the low-income threshold.

"There aren't a lot of people who really don't make [under $3,900]," said Harlan Levinson, a CPA in Los Angeles.

Don't give Uncle Sam a 0% loan

It's not meant to be claimed by the ultra-rich either: the exemption begins phasing out if you earn more than $250,000 per year.

Lisa Skidmore Sexton, an enrolled agent at Accu-Rite Tax & Accounting in Carlsbad, N.M., said she prepares around 300 tax returns per year and that only one or two of those are for couples where one person can be claimed as a dependent -- typically because they stay at home with the children or are out of work.

This year, she prepared taxes for someone claiming his girlfriend as a dependent. The client works at an oil company and his girlfriend stays home with their three kids and only works small temporary jobs -- earning about $3,800 last year.

7 most common tax mistakes

Same-sex couples have been employing this strategy for years. Before the Defense of Marriage Act was overturned last year, same-sex couples weren't able to file jointly at the federal level because they weren't recognized as married. So one person would claim the other as a dependent if he or she stayed home with the children and earned no income, said Nanette Lee Miller, head of the LGBT practice at accounting firm Marcum LLP.

Now that married same-sex couples are recognized by the federal government, however, they no longer qualify for the deduction. But if they're not married, the same exemption can be taken -- unless the relationship violates state law.

Enrolled agent Bill Nemeth said he claimed this exemption for an unmarried same-sex couple in Georgia, where one of the men was earning under the $3,900 threshold. Prior to 2004, however, he wasn't able to claim the boyfriend as a dependent because it was against state law for unmarried people in a sexual relationship to live together.

To find out if your significant other qualifies as a tax break, you can use this tool at the IRS website.

Wednesday, April 9, 2014

Stocks Hitting 52-Week Highs

Hot Information Technology Stocks To Buy For 2015

Related YONG Morning Market Movers UPDATE: Yongye Int'l Accepts Revised Go Private Bid at $7.10/Share Related ESCA Stocks Hitting 52-Week Highs Escalade Acquires DMI Sports; Terms Undisclosed

Yongye International (NASDAQ: YONG) shares touched a new 52-week high of $6.97 after the company accepted a revised go private bid at $7.10 per share.

Escalade (NASDAQ: ESCA) shares gained 1.51% to reach a new 52-week high of $14.80. Escalade shares have jumped 140.20% over the past 52 weeks, while the S&P 500 index has gained 16.64% in the same period.

Orange (NYSE: ORAN) shares reached a new 52-week high of $14.95. Orange's PEG ratio is 0.38.

Rice Energy (NYSE: RICE) shares gained 2.21% to touch a new 52-week high of $28.65. Rice Energy is expected to post earnings of $0.10 in the June quarter.

Posted-In: 52-Week HighsNews Intraday Update Markets Movers

Most Popular Baird Cautious On Tesla Ahead of First Quarter Earnings Biotechs Struggling To Find A Bottom Stifel Says Buy The Dip In Facebook, RetailMeNot, Netflix, Yahoo! Ahead Of Earnings Race for Vaccines, Treatments as West Africa Ebola Death Toll Tops 100 IPO Lookout: IPOs For The Week Of April 7, 2014 Exclusive: Tibco CEO Vivek Ranadivé Discusses Spotfire's Weakness Related Articles (ESCA + ORAN) Stocks Hitting 52-Week Highs Vodafone Plans UK Expansion to Create Jobs - Analyst Blog Updated Research Report on Orange - Analyst Blog NII Holdings Shares Continue to Fall - Analyst Blog Orange Spain into Technology Trial - Analyst Blog Vodafone FTTH Ready for Spanish Launch - Analyst Blog Around the Web, We're Loving...

Monday, April 7, 2014

Is Pandora Media Worth Investing In?

Hot High Tech Stocks For 2014

Pandora Media (P)'s results for the quarter ending in December were quite impressive, with both profits and revenue increasing. But the forecast for earnings per share for this year lies between $0.13 and $0.17, which is below analysts' expectations of $0.19 per share. The main reason behind this weak forecast for earnings is the aggressive investments that Pandora is making to keep up growth in users and to boost advertisement sales in the face of tough competition from Apple (AAPL) and Google (GOOG).

CEO Brian McAndrews said, "Our bias will continue to be toward revenue growth and capturing additional market share." So Pandora could see some weak earnings figures since it is eyeing a greater share of the market. But is it a good buy at its 52-week high if we look at the various troubles that it is facing.

Increase in Royalties Will Burden Pandora Even More

Pandora pays record companies and publishers in lieu of the songs it plays. Last year, it paid 49% of its revenue to record companies, while 4% of its revenue went to publishers. Due to this large disparity in payments, publishers are struggling to earn money from digital music. Because of the royalty payments, Pandora has to pay for each song it plays, so it is unprofitable as of now. But for every song that Pandora plays, it gets money from ads.

Licensing organization ASCAP is likely to increase the current rate of royalties, according to Business Insider. It is mainly on account of publishers that ASCAP is increasing this rate because, as mentioned already, the publishers are getting less pay as compared to singers and record companies. But this increase will put extra burden on Pandora's balance sheet to the extent that it can lead them to bankruptcy since the company had just $344 million in cash at the end of the last quarter, while it paid $339 million to publishers and record companies in 2013. An increase in royalties can further increase the payout to other parties and handicap Pandora.

Cut-Throat Competition

Also, despite being one of the world's largest online music service companies, having 76 million active users, Pandora faces tough competition from Apple's new iTunes radio service and Google's music subscription service.

When compared to Google and Apple, Pandora lags in technology. Both Google and Apple have their own mobile hardware that enables them to incorporate their service directly into the mobile operating system. Also, if people turn to YouTube, Google has the advantage because of the wealth of data it has on its users.

Google is also pushing its All Access music service to next-generation devices such as the Google Glass. Recently, Google sent VIP invitations to subscribers of its music service to join the Glass Explorer program. Hence, if Google's Glass clicks in the future and becomes a hit with customers, then it might be difficult for Pandora to penetrate this market as well.

Apple is also pushing forth its iTunes radio service in an aggressive manner. It recently launched the service in Australia, making it the first non-U.S. country to get the platform. In the future, Apple aims to launch iTunes Radio in various markets such as the UK, Canada and New Zealand in early 2014. In the long run, Apple is aiming to take the service to more than 100 countries ultimately.

An Overcrowded Industry

To combat these rivals, Pandora is coming up with its own strategies. It is aiming to increase the value of its advertisements by increasing its ad load. In this regard, Pandora is introducing advertising for its in car service this year, and hopes to expand the market for this new service.

However, Google and Apple also have plans to enter this service. With mobile and in-car service already taken into consideration, not much space is left for Pandora's expansion. It will have to venture into new areas like on-demand streaming, which is currently dominated by YouTube. This will increase its advertising avenues without need of increasing the user base. Pandora will have to work hard to know the listening habits of its target audience.

There are other potent competitors as well in the form of Spotify, Rdio, Beats Music and YouTube. This overcrowding of the music industry has caused Pandora to spend heavily on advertising and promotion to attract new customers, and this will ultimately hurt earnings.

The company is increasing its sales force to sell more slots to its advertisers to direct some ad budget to Pandora. Because of this extra selling and marketing costs, margin growth has been offset to some extent.

What Should Investors Do?

Every investor wants to know whether the company could be profitable or not. And Pandora seems to have answered that question with the company expecting to show a profit for the full fiscal year in 2014, even though it had a weak start with losses in the first quarter. Yet, Pandora has to work more to impress investors. The company has covered a lot of ground in the U.S. but it might lose in the wake of competition from Google and Apple. The probable increase in royalties could be another headache, and could even drain its cash reserves and lead to bankruptcy.

So investors should sell Pandora since it is already trading at its 52-week high, and stay away from it till the time the company's strategies start giving results.

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