Top Penny Stocks To Buy For 2017: February 2014

Friday, February 21, 2014

Critics say House bill would create 'Wild West' for private placements

A bill that passed the House quietly but overwhelmingly this week would dangerously deregulate the private-placement market, according to critics, who will try to stop the measure in the Senate.

In a 422-0 vote on Tuesday, the House approved legislation that would exempt from Securities and Exchange Commission registration brokers who specialize in mergers and acquisition of small businesses.

Under the bill, a small business is defined as one that has earnings of less than $25 million before interest, taxes, depreciation and amortization or has gross revenue of less than $250 million.

Those parameters go far beyond the small-business realm and open the entire middle market to nonregistered brokers, according to Jessica Pastorino, president and chief compliance officer of M&A Securities Group Inc.

She is also critical of a provision that would allow unlicensed brokers to raise capital.

“This bill would allow a lot of private-placement work to be done outside of broker-dealers,” said Ms. Pastorino, whose company provides a compliant broker platform for investment bankers.

The measure would end the regulatory monitoring of the M&A marketplace that keeps it safe, said Dante Fichera, chief executive of the Independent Investment Bankers Corp.

“It's the Wild West,” he said.

“There's going to be a lot of fraud. It eliminates transparency and eliminates a lot of the protections under [securities laws] that investors have,” Mr. Fichera said.

A spokesman for the author of the bill, Rep. Bill Huizenga, R-Mich., a member of the House Financial Services Committee, disputed Mr. Fichera's assertion. He said that M&A brokers would remain subject to state laws and that that the SEC could still investigate and bring enforcement actions against them.

“It is utterly and completely false that [the bill] will create the Wild West,” said Brian Patrick, Mr. Huizenga's communications director. “There would still be protections.”

In a House floor speech on Tuesday, Mr. Huizenga, a member of the House Financial Services Committee, said that the legislation would ease regulatory burdens for M&A brokers who will be helping baby boomer business owners headed for retirement sell their enterprises rather than close them and eliminate jobs.

He estimated that the market for privately owned small businesses is $10 trillion.

“We want people to see the fruits of their hard work over the years,” Mr. Huizenga said.

“We want them to be able to sell those companies,” he said. “We don't want to see peopl! e close them unnecessarily, because we know the impact that happens to small communities.”

Even though the bill is heading to the Senate with a strong wind at its back after the unanimous vote on the House floor, Ms. Pastorino hopes to stop it in the Senate.

A companion bill has been introduced in that chamber.

The Consumer Federation of America is reviewing the legislation.

“We are concerned that the bill provides an exemption for these firms that appears to be far more sweeping than is either necessary or appropriate,” said Barbara Roper, CFA director of investor protection.

Top Consumer Stocks For 2015

Supporters of the bill overstate the regulatory costs that come with oversight by the SEC and the Financial Industry Regulatory Authority Inc., Ms. Pastorino said.

“We're registered, and we get examined,” she said.

“It's not overly burdensome. Finra was here for a day and a half last year,” Ms. Pastorino said.

This story was corrected at 6:32 p.m. ET to reflect that Ms. Pastorino isn't critical of a provision in the bill that would allow brokers to raise nearly 20% of the capital for a transaction.

Thursday, February 20, 2014

Raymond James Program Grooms Associates for Advisor Roles

Raymond James (RJF) said Wednesday that it will train 10 client associates a year to become advisors. This move comes on the heels of a pilot program for associates, which it started last year, to boost the number of female advisors and to groom successors for retiring advisors.

“We want to create a career path for service associates who want to advance,” said Tash Elwyn of Raymond James & Associates (RJA) Private Client Group, the company’s employee broker-dealer, in a statement. “We also know that by being exposed to this education, participants will gain many new talents in working with their respective advisors and teams and improving their skills, whether or not they ever pursue the ultimate goal of becoming financial advisors.”

The program received a flood of applications, but just two candidates from each of RJA’s five geographic divisions were accepted.

Male associates are eligible, too, but most associates are women.

“At one of our recent Women’s Network gatherings, we asked for a show of hands from advisors who had begun their careers as sales or service associates, and at least 30% of the audience raised their hands. And of the members of our Women’s Advisory Council, that number increased to 50%,” said Nicole Spinelli, director of the Raymond James Network for Women Advisors, in a statement.

“So we knew immediately we had a very deep pool of potential advisor candidates already at the firm,” Spinelli said. “It was just a matter of developing the right curriculum, assessing the right candidates and launching a pilot program to see where that leads.”

The year-long effort pairs an associate with an advisor in the Women’s Network Advisory Council. They spend several hours a month working via conference calls, completing online classes and tutorials and, finally, attending the annual Women’s Symposium in the fall.

After six months, participants train for the Accredited Asset Management Specialist designation and take the exam. Candidates also work with a business coach, a female Raymond James advisor and other professionals contributing to the program.

Raymond James decided to use the AAMS curriculum due to its focus on core concepts of investment management (portfolio construction, asset allocation, risk assessment, etc.), as well as inclusion of financial-planning topics (such as insurance and estate planning), according to Pat Dixon, vice president of Wealth Solutions.

Plus, the AAMS serves as a “good foundation for those candidates who wish to pursue the CFP designation," Dixon point out. About 25% of Raymond James reps are CFPs.

For Raymond James’ management, the program fits in well with its other training activities and its desire to expand the number of female FAs in its ranks.

“For several years, Raymond James has positioned itself as the best place to practice for women advisors,” said David Patchen, senior vice president, PCG Education and Practice Management, in a statement. “The Women’s Symposium, the numerous educational conferences, the Advisor Mastery Program (which has about 33% female participants) and now this new Registered Service Associate Team Development Program – they are all examples of Raymond James demonstrating that focus. We are excited about the potential.”

Those in the pilot program wholeheartedly endorse the concept. “I have already learned so much and have definitely enriched my understanding of my talents and how our whole team interacts,” said class participant Ashley Thomason of Forrest Thompson Wealth Management in Greenville, S.C., in a press release.

“I particularly enjoy working with my mentor, Laura Steckler in Miami; she has inspired me to dream big and to stretch myself,” Thomason added. “Whether or not I ever decide to become a full-fledged financial advisor, I am developing many more skills and a much deeper knowledge of our business. My advisors have been extremely supportive of the program.”

At the 2013 Raymond James Women’s Symposium, held in October in St. Petersburg, Private Client CEO Chet Helck said, “Our professional ratios should be like the ratios of our clients."

“We’re at a healthy level,” Helck added, looking around the 200 female advisors in the conference hall, “but I don’t think it will get there in my lifetime. Progress is slow, though significant.” (Helck is retiring this month.)

“We want to turn this challenge into an opportunity, as CEO Paul Reilly has explained at this event,” Elwyn told attendees of the 19th-annual event. “This comes about through succession planning, recruiting and new-advisor training and development.”

About 35% of participants in Raymond James’ overall advisor training program are women, he added, “which is a significant number.” Roughly 120 individuals enter the new-advisor training program each year.

Monday, February 17, 2014

Chemical and Mining Company of Chile

My aggressive stock pick for 2014 is a Chile-based company that produces $2.5 billion worth of specialty chemicals and commodity fertilizers each year, notes Carl Delfeld, editor of Capital Gains.

Chemical and Mining Company of Chile (SQM) has long been a darling of global investors looking for plays for more productive farmland. However, the stock has plunged 59% in 2013, due to weak fertilizer and phosphate prices.

But given the strong trends underpinning this story, I think SQM is beginning to bounce back, with the catalyst being a return to normalized pricing and earnings.

After all, the company has a strong balance sheet, $900 million-plus in cash reserves, and a dividend yield of 3.8%. Farmers need its products to continue to boost productivity, with some believing that fertilizers account for more than 40% of increased agricultural yields over the last decade.

In addition, SQM is known for its hefty operating margins, and still delivers a 10.8% return on assets and a 25% return on equity. As a bonus, SQM produces 35% of the world's lithium.

Finally, the stock is trading at just ten times earnings and delivers a hefty 5.2% dividend yield, with a dividend growth rate of 28% over the past five years.

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Sunday, February 16, 2014

Mid-Afternoon Market Update: Cray Shows Strength as Agilent Technologies Falls on Earnings

Related BZSUM Benzinga Weekly Preview: Investors Get A Break As Earnings Slow Market Wrap For February 14: Markets End The Week Positive

Toward the end of trading Friday, the Dow traded up 0.84 percent to 16,161.83 while the NASDAQ gained 0.12 percent to 4,245.97. The S&P also rose, gaining 0.53 percent to 1,839.24.

Leading and Lagging Sectors
In trading on Friday, Basic Materials shares were relative leaders, up on the day by 0.78 percent. Top gainer in the sector was AMCOL International (NYSE: ACO), up 9 percent.

Shares of Cliffs Natural Resources (NYSE: CLF)also surged 6.18 percent after the company reported upbeat quarterly earnings. Financials sector was the only decliner in the market today, down on the day by 0.05 percent.

Among the financial stocks, Zillow (NASDAQ: Z) was down 9.6%, while TAL International Group (NYSE: TAL) tumbled around 3.55%. Shares of TAL International dipped after the company reported downbeat quarterly earnings.

Top Headline
Campbell Soup Co (NYSE: CPB) reported a 71% gain in its fiscal second-quarter profit. Campbell's quarterly earnings surged to $325 million, or $1.03 per share, versus $190 million, or $0.60 per share, in the year-ago quarter. Excluding special costs, it earned $1.04 per share. Its sales climbed 5.5% to $2.28 billion. However, analysts were projecting earnings of $0.73 per share on revenue of $2.27 billion.

Equities Trading UP
Cray (NASDAQ: CRAY) rose on Friday's session, gaining a staggering 36.87 percent to $41.02 after beating on the top and bottom lines, while boosting its fiscal year guidance.

Shares of Bankrate (NYSE: RATE) got a boost, shooting up 20.92 percent to $21.05 after the company reported better-than-expected Q4 results.

Coty (NYSE: COTY) was also up, gaining 7.36 percent to $14.73 after the company reported strong Q2 revenue and announced a $200 million share buyback program.

Equities Trading DOWN
Shares of Weight Watchers International (NYSE: WTW) were down 27.57 percent to $22.15 after the company reported downbeat Q4 earnings and issued a weak FY14 forecast.

Agilent Technologies (NYSE: A) was also down, dropping 8.06 percent to $55.24 after lowering its fiscal year 2014 guidance and its second quarter guidance.

GNC Holdings (NYSE: GNC) was down, falling 14.64 percent to $44.72 after the company reported weaker-than-expected Q4 results and issued downbeat FY14 guidance. Goldman Sachs downgraded the stock from Buy to Neutral and cut the price target from $72.00 to $54.00.

Commodities
In commodity news, oil traded down 0.03 percent to $100.32, while gold traded up 1.50 percent to $1,319.40.

Silver traded up 4.64 percent Friday to $21.44, while copper rose 0.38 percent to $3.26.

Eurozone
European shares were higher today.

The Spanish Ibex Index rose 0.34 percent, while Italy's FTSE MIB Index surged 1.62 percent.

Meanwhile, the German DAX gained 0.68 percent and the French CAC 40 climbed 0.63 percent while U.K. shares rose 0.06 percent.

Economics
The import price index climbed 0.1% in January, versus economists' expectations for a 0.1% decline.

US industrial production fell 0.30% for January, versus economists' estimates of a 0.20% gain.

The preliminary reading of the Reuters/University of Michigan's consumer sentiment index came in at 81.20 in February, versus a prior reading of 81.20.

However, economists were expecting a reading of 80.20.

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

Most Popular New Study Finds $47 Billion Worth Of Cell Phones Gathering Dust Chelsea Notes 'Abnormal Trading Activity' Surrounding Today's PDUFA Action Ford And General Motors Offer Staggering Discount on Full-Size Trucks Occidental Petroleum Announces Sale of Hugoton Field Assets As Part of Company's Strategic Review; Price of Sale at $1.4B Five Star Stock Watch: Canadian Solar Google And VMware Just Ganged Up On Microsoft Related Articles (A + ACO) Mid-Afternoon Market Update: Cray Shows Strength as Agilent Technologies Falls on Earnings Mid-Day Market Update: Bankrate Jumps On Upbeat Results; Weight Watchers Shares Dip Mid-Morning Market Update: Markets Mostly Higher; Campbell Soup Profit Beats Estimates Benzinga's Top #PreMarket Losers #PreMarket Primer: Thursday, February 13: Comcast To Buy Time Warner Cable Earnings Scheduled For February 13, 2014 Around the Web, We're Loving... Create an Account With Options House and Get 150 Free Trades! Pope Francis Rips 'Trickle-Down' Economics

Saturday, February 15, 2014

Is College Really Worth It?

In the anguished debate over the value of a college education vs. high costs and declining opportunities, a new Pew Research Center study weighs in resoundingly on the side of higher education.

“On virtually every measure of economic well-being and career attainment—from personal earnings to job satisfaction to the share employed full time—young college graduates are outperforming their peers with less education,” reports the 66-page Pew study, which was released earlier this week.

Indeed, the report, entitled The Rising Cost of Not Going to College, goes farther in stating that the disparity in economic outcomes between those with and without college educations “has never been greater in the modern era.”

The report, likely to provoke a heated response from college skeptics, demonstrates this conclusion by contrasting the economic performance of “millennial” generation full-time workers, ages 25 to 32.

In constant dollars, those with just high school diplomas make just $28,000 a year compared to their early boomer counterparts in 1979, who earned over $32,000 annually; the slope goes steadily downhill from there.

In contrast, an opposite upward slope marks the path of college graduates with bachelor’s or higher degrees from the silent generation, who in 1965 earned nearly $39,000 a year vs. their contemporary 20-something counterparts who earn $45,500, again, in constant dollars.

What’s more, far fewer college-educated millennials are unemployed (3.8%) compared to high school graduates (12.2%), living in poverty (5.8% vs. 21.8%) or living in their parents’ homes (12% vs. 18%); and a greater percentage are married (45% vs. 40%).

Those with two-year degrees fall consistently between those with college or high school degrees in all these categories.

College has conferred many other advantages on millennials, according to the Pew Study, including a career path rather than just a job (86% of college grads vs. 57% for those with high school degrees); the training needed to advance in their jobs (63% vs. 41%); job satisfaction (53% vs. 37%); and the feeling that their education prepared them for their professional lives (46% vs. 31%).

Past Picture

One of the key conclusions of the Pew report, however, is that a mere high school education delivers less than it did in previous generations. In constant dollars, early boomers circa 1979 enjoyed a median household income of over $50,000 compared to millennials who bring in just under $40,000; suffered a 7% poverty rate compared to 22% today; and had an 87% likelihood of lifetime employment compared to 82% today.

An overwhelming percentage of college graduates then and now believe their college degree did or will pay off, despite the financial investment; and the study shows a hierarchy of college graduates positively evaluating their academic preparation, with science and engineering students rating themselves most prepared, followed by business students and last social science/liberal arts/education majors.

The study’s stark contrast between the fortunes of college and high school graduates is sure to receive criticism from those who see higher education as costlier and less rewarding than in the past.

Richard Vedder of Ohio University’s Center for College Affordability and Productivity has published colorful statistics showing that the number of janitors with bachelor’s degrees now surpasses 115,000 or that 15% of cab drivers have such degrees today (vs. less than 1% in 1970).

In a widely referenced 2012 article for Bloomberg Businessweek, Vedder took the “college premium” argument head on, saying that that the $1 million-plus increased lifetime earnings was not traceable to the degree itself but to the higher intelligence and better work habits of college graduates.

He added that more than 40% of higher ed students exit college without a degree, even within six years, but with higher debt and lost working years. Vedder also warned against misinterpreting averages, saying:

“A non-swimmer trying to cross a stream that on average is three feet deep might drown because part of the stream is seven feet in depth. The same kind of thing sometimes happens to college graduates too entranced by statistics on averages,” he wrote, noting widely varying outcomes between, say, engineering and ethnic studies majors.

Finally, he invoked changed market conditions, with a higher supply of college graduates meeting reduced growth in professional employment, and argued that high school students should select a path in line with their past preparation and future opportunities.

Wednesday, February 12, 2014

Comcast to buy Time Warner Cable

Comcast on Thursday will announce its intent to acquire Time Warner Cable in a $45 billion deal.

NEW YORK (CNNMoney) Comcast on Thursday will announce its intent to acquire Time Warner Cable in a $45 billion deal that will combine the two biggest cable companies in the United States.

Comcast (CCV) has agreed to pay $158.82 per share of Time Warner Cable (TWC, Fortune 500) stock, according to two people with direct knowledge of the transaction who insisted on anonymity because the deal will not be publicly announced until Thursday morning.

The two companies expect the merger to receive government approval and take effect by the end of the year, but regulators are likely to take a close look at the potential impact on consumers.

The terms of the deal were first reported on Wednesday night by CNBC.

The apparent deal ends months of jockeying for control of Time Warner Cable, which is the country's second biggest supplier of cable television service, with about 12 million subscribers in markets like New York City and Los Angeles. Charter (CHTR, Fortune 500), a smaller cable company, had been attempting a takeover of the company, but had been rebuffed by Time Warner Cable's board and chief executive.

Comcast had cast a shadow over the negotiations, and had reportedly held talks with Charter about how to potentially divvy up Time Warner Cable's territories.

By swallowing up Time Warner Cable on its own, Comcast will gain even more leverage over the country's marketplace for television, broadband Internet and phone services. Comcast already has about 23 million television subscribers in markets like Philadelphia, where it is headquartered.

Even before the official announcement, questions arose about whether Comcast will be allowed to expand its cable footprint so substantially.

Will AOL & Yahoo get married?

Regulators used to enforce a rule that prohibited a single cable company from controlling more than 30% of the market. But Comcast led a challenge to that rule in the mid-2000s, and in 2009 a federal appeals court threw out the 30% cap.

The cable company remains remarkably well connected in Washington. In fact, its chief lobbyist, David Cohen, was a guest at the White House state dinner for the French president on Tuesday night.

Related story: Court strikes do! wn net neutrality rules

Still, the Justice Department and other federal agencies will surely line up to scrutinize the proposed combination of Comcast and Time Warner Cable. Sources with direct knowledge of the impending deal said that Comcast, in a nod to concerns about the size of the combined cable provider, would voluntarily divest local cable systems totaling about three million subscribers.

One public interest group, Free Press, signaled immediate opposition to the consolidation.

"In an already uncompetitive market with high prices that keep going up and up, a merger of the two biggest cable companies should be unthinkable," the group's president, Craig Aaron, said in an email. "This deal would be a disaster for consumers and must be stopped."

Free Press similarly opposed Comcast's acquisition of NBCUniversal, which was approved by the government -- with conditions -- in 2011.

Tuesday, February 11, 2014

A Look at InterContinentalâ€™s Post-Crisis Growth Strategy

Hot Bank Stocks To Buy Right Now

Recessions are difficult for any consumer-related industry to overcome, but the travel and hotel segment is always particularly affected by budget cuts. Nevertheless, with a 20% boost of the domestic revenue per available room, the lodging industry is well on the recovery road, with several large companies leading the way. Investment guru Pioneer Investments (Trades, Portfolio) recently bought almost 80,000 shares of InterContinental Hotels Group PLC (IHG), the world's largest hotel owner, franchiser and manager, with over 4,500 hotels in 100 countries. But let's see what really makes this company a solid long-term investment.

A Majority Franchised System

This company is known for its famous midscale brands Holiday Inn and Holiday Inn Express, as well as the upscale hotels InterContinental and Crowne Plaza. The interesting factor, however, is the high rate of franchised and managed hotels among these brands, compared to industry rivals Hyatt Hotels Corporation (H) or Starwood Hotels & Resorts Worldwide Inc. (HOT). With more than 99% franchised or managed hotels in the InterContinental system, this company profits from excessive operating margins of 33.2% (the industry average is 8.70%) and minimal capital expenditures.

Additionally, the typical 10 to 30-year contracts for hotel franchises create high switching costs for property owners, while simultaneously generating high returns on invested capital. Since 2010, for example, InterContinental has averaged a 29% return on capital, and currently reports a 57.8% return, all due to the firm's asset-light strategy of selling owned hotels and converting them to management or franchising contracts. The latest transaction of the InterContinental New York Barclay, for example, sold at $300 million, was a well strung deal for the company, which will maintain a 20% ownership in the property, as well as manage the hotel for the next 30 years. This transaction is bound to boost free cash flow, as well as revenue growth, which has been somewhat stagnant throughout fiscal 2013 (4.0%).

International Advantage

One of InterContinental's key growth segments is its international business. Since 1984, this company has been taking advantage of the underpenetrated Chinese market, and today this hotel operator holds the best infrastructure to grow and expand its brand presence in the country. With an estimated 50,000 rooms in its new Chinese hotel pipeline, representing 90% of the firm's total existing rooms in Asia, the company will enjoy a solid 15% annual unit growth in China over the next several years. Also, the current 10% revenue income generated by this nation will reach 25% by 2021 making InterContinental the best represented U.S. lodging company in Asia.

Fiscal 2014 is looking promising for this hotel operator, with a forecasted increase of room numbers by 3.1% annually until 2022, in addition to boosts in revenue per room over several continents. America is expected to deliver 5.3% annual growth, Europe 4.4% and China 8.4%, as the economy in these regions recover and travel spending continues to surge. Although this lodging firm remains vulnerable to the risks of a recession, which led to revenue declines of 14% from 2007 to 2009, I believe the almost integrally franchised business model will be able to sustain profits in the long term. Furthermore, with the stock currently trading at a 35% price discount relative to the industry average of 22.60x, and the 2.04% dividend yield should be appealing to investors.

Disclosure: Patricio Kehoe holds no position in any stocks mentioned.

About the author:Patricio KehoeA fundamental analyst at Lone Tree Analytics

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Monday, February 10, 2014

Top 5 Internet Stocks To Invest In 2015

In 2007, the French video game company Vivendi transferred its Blizzard division to Activision along with some cash in exchange for 52% of the resulting company, Activision Blizzard (NASDAQ: ATVI ) . As time went on, Vivendi suffered with shares declining about 45% since the divestment. The new Activision Blizzard, meanwhile, survived. Shares bumped along from 2009 through the beginning of 2013, but have risen 43% year to date.

In its desperation, Vivendi started to push Activision Blizzard for a payout of some sort. After months of pressure, Vivendi got a payout. Activision Blizzard announced that it was buying most of Vivendi's shares back, through a combination of corporate and private money. As a result, Vivendi will be left with a 12% stake. A private investment group, which includes Activision Blizzard CEO Bobby Kotick and Internet giant Tencent, will own 24.9% of the business.

Freedom fall
Along with the announcement, Activision Blizzard gave a small heads-up to investors regarding its quarterly earnings announcement, which will come on Aug. 2. The company announced that World of Warcraft, the massively multiplayer online game that has defined Blizzard for years, saw a 600,000 fall in subscriptions over the past four months. The game now boasts 7.7 million subscribers, which is still a huge contingent, but is also about what it had back in 2007.

Top 5 Internet Stocks To Invest In 2015: IAC/InterActiveCorp (IACI)

IAC/InterActiveCorp engages in the Internet business in the United States and internationally. The company�s Search segment develops, markets, and distributes various downloadable toolbars; provides search, reference, and content services through its destination search and other Websites, including Ask.com and Dictionary.com; and aggregates and integrates local advertising and content for distribution to publishers on Web and mobile platforms, as well as markets and distributes mobile applications through which it provides search and additional services. Its Match segment offers subscription-based and advertiser-supported online personals services through its Websites comprising Match.com, Chemistry.com, OurTime.com, BlackPeopleMeet.com, and OkCupid.com, as well as through mobile applications and Meetic-branded Websites. The company�s ServiceMagic segment offers Market Match service that matches consumers with service professionals; Exact Match service, which enables con sumers to review service professional profiles and select the service professional that meets their specific needs; and 1800Contractor.com, an online directory of service professionals. This segment also offers Website design and hosting services. Its Media and Other segment operates CollegeHumor.com, an online entertainment Website that targets young males; Vimeo, a Website on which users can upload, share, and view video; and Pronto.com, a comparison search engine. This segment also engages in the creation of video content for various distribution platforms; and operates as an Internet retailer of footwear and related apparel and accessories, as well as focuses on multimedia business. The company was formerly known as InterActiveCorp and changed its name to IAC/InterActiveCorp in July 2004. IAC/InterActiveCorp was founded in 1986 and is headquartered in New York, New York.

Advisors' Opinion:

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

Posted-In: PreMarket LosersNews Movers & Shakers Pre-Market Outlook Markets
[By WALLSTCHEATSHEET.COM]
IAC/InterActiveCorp provides information and entertainment services through its wide portfolio of websites to consumers and companies across the globe. The stock has been moving higher in recent years and seems to be getting ready to test all-time high prices. Over the last four quarters, earnings have been mixed while revenues have been increasing, which has pleased investors. Relative to its peers and sector, IAC/InterActiveCorp has trailed in year-to-date performance. Look for IAC/InterActiveCorp to catch up and OUTPERFORM.

Top 5 Internet Stocks To Invest In 2015: Amazon.com Inc.(AMZN)

Amazon.com, Inc. operates as an online retailer in North America and internationally. It operates retail Web sites, including amazon.com and amazon.ca. The company serves consumers through its retail Web sites and focuses on selection, price, and convenience. It also offers programs that enable sellers to sell their products on its Web sites, and their own branded Web sites. In addition, the company serves developer customers through Amazon Web Services, which provides access to technology infrastructure that developers can use to enable virtually various type of business. Further, it manufactures and sells the Kindle e-reader. Additionally, the company provides fulfillment; miscellaneous marketing and promotional agreements, such as online advertising; and co-branded credit cards. Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington.

Advisors' Opinion:

[By Demitrios Kalogeropoulos]
Has the Amazon.com (NASDAQ: AMZN ) retail threat been defanged? Looking just at some of the stocks that the company ravaged last year, you might think so.
[By Ashraf Eassa]
I do realize that it's too early to tell how this holiday season will play out with respect to sales of LeapFrog's latest products, but when I head to LeapFrog's online store and take a look at the initial reviews of the LeapPad Ultra, I notice something peculiar. On a 5-star rating system, the device currently has an overall rating of 4.2, with 9 out of 11 users claiming that they would recommend the device to a friend. It is worth noting that five of the 11 reviews were written by individuals whom had received a unit for review from LeapFrog, and that all of these reviews were 5 star. Factoring out these reviews, and we see that the average rating drops to 3.53 - which matches up with the average review score for the device on Amazon.com (AMZN) of 3.5 stars.
[By Brendan Byrnes]
Brendan: I've definitely been guilty of this. Amazon� (NASDAQ: AMZN ) in the past, LinkedIn� (NYSE: LNKD ) more recently, when you look at that and you say, "Man, it's too expensive now. It's had this run up, why would I buy it now?" How should individual investors look at this? Should they reevaluate how they're looking at the company, and ignore that?
[By Wallace Witkowski]
Nowhere was that more apparent than with Amazon.com Inc.�� (AMZN) �results this past week. Amazon had promised a ��ecord-setting��holiday season, but earnings and sales fell short of the Wall Street consensus. Shares of Amazon dropped 11% on Friday, the following day, triggering a Nasdaq short-sale restriction.

Best Stocks To Invest In: eBay Inc.(EBAY)

eBay Inc. provides online platforms, services, and tools to help individuals and merchants in online and mobile commerce and payments in the United States and internationally. Its Marketplaces segment operates ecommerce platform eBay.com; vertical shopping sites, such as StubHub, Fashion, Motors, and Half.com; and classifieds Websites, including Den Bl�Avis, BilBasen, Gumtree, Kijiji, LoQUo, Marktplaats.nl, mobile.de, Alamaula, Rent.com, eBay Anuncios, eBay Kleinanzeigen, and eBay Annunci, as well as provides advertising services. The company?s Payments segment offers payment and settlement services for consumers and merchants on and off eBay Websites and other merchant Websites. This segment operates PayPal, which enables individuals and businesses to send and receive payments online and through mobile devices; Bill Me Later that enables the United States merchants to offer, the United States consumers to obtain, credit at the point of sale for ecommerce and mobile tra nsactions; Zong, which allows users with mobile phones to purchase digital goods and have the transactions charged to their phone bill; and BillSAFE that enables customers pay for purchases upon receipt of an invoice. Its GSI segment offers an ecommerce services suite for enterprise clients that operate in general merchandise categories, including apparel, sporting goods, toys and baby, health and beauty, and home; and marketing services comprising full-service digital agency, enterprise email marketing, mobile advertising, affiliate marketing, advertisement retargeting, and in-depth analytics services. The company also offers X.commerce platform that provides software developers access to the company?s applications programming interfaces to develop functionality for various merchants; and Magento Connect, which allows developers to market and sell add-on functionality and solutions to merchants that use a Magento storefront. eBay Inc. was founded in 1995 and is headquarter ed in San Jose, California.

Advisors' Opinion:

[By Tim Beyers]
For example, in the last quarter alone, eBay (NASDAQ: EBAY ) handled about $18 billion worth of transactions. The company also serves 128 million e-payment consumers via PayPal, making it one Tim's top choices as a Bitcoin alternative.

Top 5 Internet Stocks To Invest In 2015: Internap Network Services Corporation(INAP)

Internap Network Services Corporation provides information technology (IT) infrastructure services. The company operates through two segments, Data Center Services and IP Services. The Data Center Services segment provides colocation services, which include physical space for hosting customers? IT infrastructure network and other equipment, as well as offers associated services, such as redundant power and network connectivity, environmental controls, and security. This segment also offers managed hosting services that enable its customers to own and manage the software applications and content, as well as provides and maintains the hardware, operating system, collocation, and bandwidth. The IP services segment provides patented performance Internet protocol (IP) service; XIP acceleration-as-a-service solution; and flow control platform, a premise-based intelligent routing hardware product for customers, who run their own multiple network architectures, known as multi-homi ng. In addition, this segment offers content delivery network services that enable its customers to stream and distribute media and content, such as video, audio software, and applications to audiences through points of presence, as well as offers capacity-on-demand services to handle events and unanticipated traffic spikes. Internap Network Services Corporation provides its services and products through 76 IP service points, which include 20 CDN POPs and 1 standalone CDN POP, as well as through 37 data centers across North America, Europe, and the Asia-Pacific region. It serves the entertainment and media, financial services, business services, software, hosting and information technology infrastructure, and telecommunications industries. The company was founded in 1996 and is based in Atlanta, Georgia.

Top 5 Internet Stocks To Invest In 2015: Symantec Corporation(SYMC)

Symantec Corporation provides security, storage, and systems management solutions internationally. The company?s Consumer segment delivers Internet security, PC tune-up, and online backup solutions and services to individual users and home offices. Its Security and Compliance segment provides solutions for endpoint security and management, compliance, messaging management, data loss prevention, encryption, and authentication services to large, medium, and small-sized businesses, as well as offers solutions through its software-as-a-service (SaaS) security offerings. This segment?s products enable customers to secure, provision, and remotely manage their laptops, PCs, mobile devices, and servers. The company?s Storage and Server Management segment provides storage and server management, backup, archiving, and data protection solutions across heterogeneous storage and server platforms, as well as solutions delivered through its SaaS offerings to large, medium, and small-s ized businesses. Symantec?s Services segment offers implementation services and solutions, including consulting, business critical services, education, and managed security services. The company also provides various enterprise support offerings, such as annual maintenance support contracts, including content, upgrades, and technical support. It sells its products through its eCommerce platform, as well as through distributors, direct marketers, Internet-based resellers, system builders, ISPs, and retail locations worldwide. Symantec markets and sells its products through distributors, retailers, direct marketers, Internet-based resellers, original equipment manufacturers, system builders, and Internet service providers; and its e-commerce channels, as well as direct sales force, value-added and large account resellers, and system integrators. The company was founded in 1982 and is headquartered in Mountain View, California.

Advisors' Opinion:

[By Amanda Alix]
Of course, banks can't know when an attack is merely disruptive, and when it may be covering for criminal activity. Security company Symantec (NASDAQ: SYMC ) has commented that these assaults have become a way for hackers to distract banks while funds are illegally withdrawn. Though most of the thefts have occurred in Europe, where attacks have progressed from website outages to actual bank heists, at least one U.S. bank, Citigroup, disclosed some losses due to cyber thievery earlier this year.
[By Paul Ausick]
Big Earnings Movers: AT&T Inc. (NYSE: T) is down 1.9% at $34.62 on earnings that were good but not great. Symantec Inc. (NASDAQ: SYMC) is down 12.8% at $21.48 on lagging revenues and a weak outlook. Fusion-io Inc. (NYSE: FIO) is down 24.4% at $9.81 on soft results. Goldcorp Inc. (NYSE: GG) is up 4% at $26.62 after reporting earnings this morning. Xerox Corp. (NYSE: XRX) is down 10.4% at $9.61 on a weak outlook tied to a failing turnaround plan.
[By Tim Melvin]
The first "insider" stock to buy is Symantec Corp. (Nasdaq: SYMC), one of the leading internet security providers in the world.

Symantec makes a wide range of products that help individuals and businesses keep their computers and mobile devices safe from viruses and malware. The stock recently dropped sharply after the company fell short of analysts' quarterly earnings expectations, but CEO Stephen Bennett clearly disagrees with the market's opinion of the company's prospects. He got out his checkbook and added 1,000,000 shares of stock for a total cost of more than $2.2 million. He now owns 488,000 shares of Symantec stock and clearly has high expectations for the future of Symantec's stock price.

Top 5 Internet Stocks To Invest In 2015: Google Inc.(GOOG)

Google Inc. maintains an index of Web sites and other online content for users, advertisers, and Google network members and other content providers. It offers AdWords, an auction-based advertising program; AdSense program, which enables Web sites that are part of the Google Network to deliver ads from its AdWords advertisers; Google Display, a display advertising network that comprises the videos, text, images, and other interactive ads; DoubleClick Ad Exchange, a real-time auction marketplace for the trading of display ad space; and YouTube that provides video, interactive, and other ad formats for advertisers. The company also provides Google Mobile that optimizes Google?s applications for mobile devices in browser and downloadable form; and enables advertisers to run search ad campaigns on mobile devices, as well as Google Local that provides local information on the Web; and Google Boost for small businesses to participate in the ads auction. In addition, it offers And roid, an open source mobile software platform; Google Chrome OS, an open source operating system; Google Chrome, a Web browser; Google TV, a platform for the consumers to use the television and the Internet on a single screen; and Google Books platform to discover, search, and consume content from printed books online. Further, the company provides Google Apps, a cloud computing suite of message and collaboration tools, which includes Gmail, Google Docs, Google Calendar, and Google Sites; Google Search Appliance that offers real-time search of business and intranet applications, and public Web sites; Google Site Search, a custom search engine; Google Commerce Search for online retail enterprises; Google Checkout to make online shopping and payments streamlined and secure; Google Maps Application Programming Interface; and Google Earth Enterprise, a firewall software solution for imagery and data visualization. Google Inc. was founded in 1998 and is headquartered in Mountain View, California.

Advisors' Opinion:

[By Evan Niu, CFA]
Of the five tech giants currently at war, Apple (NASDAQ: AAPL ) and Google (NASDAQ: GOOG ) have the most immediate structural advantages since mobile payments will inevitably be driven by smartphones, and iOS and Android power over 90% of all smartphones sold. Amazon.com has 209 million active customer accounts with payment info on file, but the e-tailer doesn't operate a smartphone platform (yet).

Top 5 Internet Stocks To Invest In 2015: Yahoo! Inc.(YHOO)

Yahoo! Inc., together with its subsidiaries, operates as a digital media company that delivers personalized digital content and experiences through various devices worldwide. It offers online properties and services to users; and a range of marketing services to businesses. The company?s communications and communities offerings include Yahoo! Mail, Yahoo! Messenger, Yahoo! Groups, Yahoo! Answers, Flickr, and Connected TV, which provide a range of communication and social services to users and small businesses enabling users to organize into groups and share knowledge, common interests, and photos. Its search products comprise Yahoo! Search and Yahoo! Local, available free to users to navigate the Internet and discover content. The company?s marketplaces offerings and services include Yahoo! Shopping, Yahoo! Travel, Yahoo! Real Estate, Yahoo! Autos, and Yahoo! Small Business, which allow users to research specific topics, products, services, or areas of interest by review ing and exchanging information, obtaining contact details, or considering offers from providers of goods, services, or parties with similar interests. Its media offerings comprise Yahoo! Homepage, Yahoo! News, Yahoo! Sports, Yahoo! Finance, My Yahoo!, Yahoo! Toolbar, Yahoo! Entertainment & Lifestyles, Yahoo! Contributor Network, and Yahoo! Pulse, which are designed to engage users with online content and services on the Web. The company also offers marketing services, such as display and search advertising, listing-based services, and commerce-based transactions to advertisers. In addition, it provides software and platform offerings for third-party developers, advertisers, and publishers, such as Yahoo! Developer Network, Yahoo! Open Strategy, Yahoo! Application Platform, Yahoo! Updates, Yahoo! Query Language, and Yahoo! Search BOSS. The company has strategic alliances with Nokia and ABC News, Inc. Yahoo! Inc. was founded in 1994 and is headquartered in Sunnyvale, Californi a.

Advisors' Opinion:

[By Tim Beyers]
Yahoo! (NASDAQ: YHOO ) kicked off tech earnings week by reporting better-than-expected results, though revenue fell 7% year over year. Display ad revenue, long a source of strength for the business, fell 11%. The good news? Yahoo! says there are now 300 million active mobile users of its apps, a 50% improvement from December.

Saturday, February 8, 2014

Goose Island drafts new beers, new promotions

Goose Island Beer Co., is starting its first national advertising campaign. Magazine ads such as this mockup will be part of it.(Photo: Goose Island Beer Co.)

Goose Island Beer Co., a craft brewer owned by a beer behemoth that's behind cult favorite Bourbon County Brand Stout, is popping the top on its first national advertising campaign.

It's an appropriate time for the Chicago-based brewery, an independent purchased by Anheuser-Busch InBev in 2011, as Goose Island beers became available in all 50 states just last year.

With interest in — and sales of — craft beer on the rise, Goose Island and parent AB InBev figured it was time to formally introduce the brand to consumers.

In addition to a new one-minute video ad that will be found beginning todayon food, travel and music websites, Goose Island will place full and double-page advertisements in upcoming consumer-focused magazines.(Some have already run in Draft and Beer Advocate magazines.)

The video takes viewers inside Goose Island's Fulton Street Brewery and its barrel-aging facility. And the city of Chicago plays a major part, too, with several shots of the skyline and the L subway line.

Symbolism, sure, but it's meant as a sign that the brewery means to stay true to its roots, despite its growing national reach, says Mark Hegedus, Goose Island marketing director. "And our roots is all about being innovative and creative and always wanting to try what is next out there."

The message of "To What's Next" used in the campaign is appropriate, as Goose Island has many new beers set to debut this year. While some craft beer devotees voiced concern at AB InBev's purchase of Goose Island two years ago, Hegedus notes that the resources of the megabrewer have helped the brewery expand its repertoire.

Its popular 312 Urban Wheat beer and Honker Ale, available nationwide, are now made at corporate brewing sites in Baldwinville, N.Y., and Fort Collins, Colo. But, Hegedus says, "our brewmaster tastes every batch.

That has freed up the Fulton Street Brewery to become more of an inc! ubator. "It has gone back to what it was when we first opened, of just trying new beers," he says. "Now we have that flexibility again."

As a result, Goose Island is making more beer and more different beers than ever before. The company shipped 37% more barrels of beer nationally in 2012 — the most recent numbers Goose Island could provide — increasing its shipments to 208,000 barrels, up from 152,000 barrels in 2011.

Additional production capacity has been devoted to the barrel-aged Bourbon County Brand Stout, which is released annually in November to don't-blink-or-you'll-miss-it sellouts of the bottles. The brewer also expanded its barrel-aged beers with new varieties such as Bourbon County Brand Barleywine and Backyard Rye, as well as its wine-barrel-aged lineup with two new farmhouse ales called Gillian and Halia, released last fall.

The barrel warehouse at Goose Island Beer Co. in Chicago.(Photo: Goose Island)

Goose Island plans to release 18 new beers this year, a dozen of which will be available nationally (bringing its national beers to 17). New national releases include the 312 Urban Pale Ale, due to launch in March, and three seasonal single-hop beers using hops grown at the brewery's hop farm in northern Idaho. The first is Ten Hill Pale Ale, released nationwide on Dec. 2, 2013, and Endless IPA, a hoppy, lower-alcoholic (5.2% ABV) session ale coming in early April. Next is a Rambler Red ale in late summer.

Construction is underway of a 130,000-square-foot warehouse — 2 miles away from its Fulton Street Brewery — to store and age the barrel-aged beers. The brewery continues to make beers that are only distributed locally on tap at its original Clybourn Avenue brewpub, opened in 1988, and its Wrigley! ville bre! wpub, opened in 1999, and other local restaurants.

Goose Island fans may have worried about a watering down of the beloved Chicago brewer's products after its acquisition by AB InBev, "but two years in, we're not seeing it," says Tom Bobak, editor-in-chief of AmericanCraftBeer.com.

"They acquired Goose Island to get a piece of craft beer's pop cultural energy and it's economic energy, of course," Bobak says. "I think they have been careful not to diminish their acquisition. They have left Goose Island to be Goose Island."

Goose Island's Bourban County Brand Stout launch event at City Beer Store on Nov. 29, 2013, in San Francisco.(Photo: Steve Jennings, Getty Images for Goose Island)

Friday, February 7, 2014

Investors Overreact to a Revolution-ary Contract

As you've probably heard by now, shares of LED lighting specialist Revolution Lighting (NASDAQ: RVLT ) popped by nearly 18% in Monday trading. But why?

One word: ignorance.

First, the facts
Let's start with what we know, and see if we can figure out whether investors were right to bid up the shares so high. According to the press release that Revolution put out Monday, the U.S. Navy's Military Sealift Command (MSC) contracted to buy 17,000 Seesmart 2- and 4-foot LED tube lamps. Further specifics on the lights were not provided. But Revolution has previously disclosed that its 15-watt LED tube lamp, for example, produces more than 1,700 lumens of light, and says it's "the industry's most efficient four-foot LED T8 lamp, utilizing the lowest wattage and generating the highest light output available." So far, so good.

We know, too, that MSC intends to install these lamps on the 14 newish Lewis and Clark-class Auxiliary Cargo and Ammunition Ships that General Dynamics (NYSE: GD ) built for it over the past 12 years, retrofitting these relatively new ships with even newer lighting technology.

Now, the math
Revolution didn't disclose the value of this contract. But judging from advertisements available on the Web, these lights appear to retail for anywhere from $50 to $70 apiece. Presumably, the Navy got a discount for buying in bulk. But even if it paid full freight, this still gives a maximum value on Revolution's contract of perhaps $1.2 million for 17,000 4-foot tube lamps.

That's certainly a sizable contract for a company like Revolution, which did only $20 million in sales over the past year. Yet consider: The 17.6% spike in the shares yesterday -- $0.50 per share -- added not $1.2 million, but rather $40.8 million to Revolution's market cap. This seems a bit excessive given our estimated value of the contract. When you consider further that Revolution is earning negative profit margins on its revenues, the logic of turning even a $1.2 million sales contract into a $40.8 million increase in market cap seems even more tenuous.

Hot Cheap Companies To Buy For 2015

Granted, in time this Navy deal could get bigger. If MSC decides it likes the product, and expands its purchases to retrofit, say, its entire 110-ship fleet, this could result in orders eight times as large as Monday's 14-ship, 17,000-unit contract. But even if that happens ... we'd still be looking at a sales contract worth less than $10 million.

Turning news this small into an increase $40.8 million big is quite simply ridiculous. Investors got carried away, and I suspect they'll rue the day.

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Wednesday, February 5, 2014

Concerns rise as hotel chains disclose data breach

SEATTLE -- The disclosure of consumer data breaches at certain Marriott, Holiday Inn, Sheraton and other major hotels managed by White Lodging Hotels comes as Congress is getting briefed about how cybercriminals are taking advantage of flaws in systems that collect and store sensitive data.

News: White Lodging warns of breach

Senators Al Franken, Dick Durbin, and Diane Fienstein yesterday got an earful from senior executives from Target and Neiman Marcus and a full slate of industry experts.

Sterne Agee analyst Vijay Rakesh says two big takeaways from Tuesday's sessions on Capitol Hill were:

The October 2015 timeline issued by Visa and MasterCard for US merchant to switch from magnetic striped point of sale systems to EMV pin and chip technology could be shorten for many companies.

Target CFO, John Mulligan, said the retail giant has committed to decreasing that timeline internally by 6 months, and plans to have new systems up and running in the first quarter of 2015.

The revelation that hotel chains have been hit adds to concerns lawmakers already hold regarding data breaches recently reported by Target, Neiman Marcus and Michaels. The affected hotels in the White Lodging incident are:

Marriott Midway, Chicago
Holiday Inn Midway, Chicago
Holiday Inn Austin Northwest, Austin
Sheraton Erie Bayfront, Erie, Pa.
Westin Austin at the Domain, Austin
Marriott Boulder, Boulder
Marriott Denver South, Denver
Marriott Austin South, Austin
Marriott Indianapolis Downtown, Indianapolis
Marriott Richmond Downtown, Richmond, Va.
Marriott Louisville Downtown, Louisville, Ky.
Renaissance Plantation, Plantation, Fla.
Renaissance Broomfield Flatiron, Broomfield, Colo.
Radisson Star Plaza, Merrillville, Ind.

Meanwhile, a new research firm, the The CyberEdge Group, this morning issued results of a survey of 750 security decision makers and practitioners , called the Cyberthreat Defense! Report. Key findings paint a picture of a landscape full of ripe targets for hackers:

More than 60 percent of survey takers said they worked for companies that had been breached in 2013

Some 25% cited lack of employer investment in adequate defenses

Steve Piper, CEO of CyberEdge, says the report is intended to complement Verizon's benchmark Data Breach Investigations Report, which annually identifies patterns revealed in hundreds of actual forensics investigations.

"As security professionals, it's not only important to know what threats are coming at us, but what our peers are doing about them," Piper says. "This report provides this level of insight in a purely unbiased way."

Tuesday, February 4, 2014

5 Hated Earnings Stocks You Should Love

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

>>Where's the S&P Headed From Here? Higher!

This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.

>>5 Rocket Stocks to Buy in February

If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

Tableau Software

My first earnings short-squeeze trade idea is computer software player Tableau Software (DATA), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Tableau Software to report revenue of $258.50 million on earnings of 2 cents per share.

>>5 Stocks Ready to Break Out

Just recently, Goldman Sachs Group said it believes Tableau Software is well-positioned to benefit from Big Data analytic trends, and the firm upgraded shares to buy from neutral to reflect higher estimates and growth and raised its price target to $92 from $77 per share.

The current short interest as a percentage of the float for Tableau Software is pretty high at 9.2%. That means that out of the 15.93 million shares in the tradable float, 1.21 million shares are sold short by the bears. This is a high short interest on a stock with a very low tradable float. Any bullish earnings news could easily spark a monster short-squeeze for shares of DATA post-earnings.

From a technical perspective, DATA is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong over the last three months, with shares moving higher from its low of $58.96 to its recent high of $82.33 a share. During that uptrend, shares of DATA have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of DATA within range of triggering a near-term breakout trade post-earnings.

If you're bullish on DATA, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its all-time high of $82.33 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 705,721 shares. If that breakout hits, then DATA will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $95 to $100 a share.

I would simply avoid DATA or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some near-term support levels at $74 to $72.40 a share with high volume. If we get that move, the DATA will set up to re-test or possibly take out its next major support levels at its 50-day moving average of $68.99 to $62 a share.

Alliance Fiber Optic Products

Another potential earnings short-squeeze play is semiconductor player Alliance Fiber Optic Products (AFOP), which is set to release its numbers on Monday after the market close. Wall Street analysts, on average, expect Alliance Fiber Optic Products to report revenue $22.68 million on earnings of 32 cents per share.

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The current short interest as a percentage of the float for Alliance Fiber Optic Products is very high at 12.4%. That means that out of the 12.56 million shares in the tradable float, 1.56 million shares are sold short by the bears. This is a large short interest on a stock with very low tradable float. If the bulls get the earnings news they're looking for, then shares of AFOP could easily spike sharply higher post-earnings as the bears rush to cover some of their positions.

From a technical perspective, AFOP is currently trending just above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending a bit over the last two months, with shares moving higher from its low of $13.42 to its recent high of $17.81 a share. During that move, shares of AFOP have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AFOP within range of triggering a major breakout trade post-earnings.

If you're in the bull camp on AFOP, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $17 to $17.81 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 549,548 shares. If that breakout hits, then AFOP will set up to re-test or possibly take out its next major overhead resistance levels at $21.50 to $23 a share.

I would simply avoid AFOP or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 200-day moving average of $14.89 a share to more key near-term support at $14.41 a share with high volume. If we get that move, then AFOP will set up to re-test or possibly take out its next major support levels at $13.42 to $12 a share, or even $10 a share.

Green Plains Renewable Energy

Another potential earnings short-squeeze candidate is Green Plains Renewable Energy (GPRE), a producer, marketer and distributer of ethanol, which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Green Plains Renewable Energy to report revenue of $798.08 million on earnings of 40 cents per share.

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Just recently, Stephens downgraded shares of Green Plains Renewable Energy to equal weight from overweight due to valuation and lack of visibility.

The current short interest as a percentage of the float for Green Plains Renewable Energy is extremely high at 33.5%. That means that out of the 21.83 million shares in the tradable float, 8.83 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 8.8%, or by about 712,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of GPRE could easily explode higher post-earnings as the shorts jump to cover some of their trades.

From a technical perspective, GPRE is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last two months and change, with shares moving higher from its low of $13.75 to its recent high of $22.66 a share. During that uptrend, shares of GPRE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GPRE within range of triggering a big breakout trade post-earnings.

If you're bullish on GPRE, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high at $22.66 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 886,113 shares. If that breakout hits, then GPRE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $27 to $30 a share.

I would avoid GPRE or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support at $20.75 a share with high volume. If we get that move, then GPRE will set up to re-test or possibly take out its next major support levels at its 50-day moving average of $18.87 a share to $18.02 a share. Any high-volume move below those levels will then put its 200-day moving average at $16.14 into range for shares of GPRE.

Outerwall

Another earnings short-squeeze prospect is automated retail solutions provider Outerwall (OUTR), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Outerwall to report revenue of $595.34 million on earnings of $1.22 per share.

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Just recently, Northland Securities said it believes that revenue from Outerwall's Redbox business should be up 1.5% quarter-over-quarter, slightly above the firm's previous estimate of about $494 million. However, the firm warns that the company could provide cautious Q1 guidance due to the Winter Olympics, and it expects the company's Q1 revenue to miss the consensus estimate. Nonetheless the firm is sticking with its outperform rating and $78 a share price target on the stock.

The current short interest as a percentage of the float for Outerwall is extremely high at 31.1%. That means that out of the 21.13 million shares in the tradable float, 8.51 million shares are sold short by the bears. This is a monster short interest on a stock with a very low tradable float. Any bullish earnings news could easily spark a massive short-squeeze for shares of OUTR post-earnings.

From a technical perspective, OUTR is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been trending sideways and consolidating for the last four months, with shares moving between $61.22 on the downside and $72.09 on the upside. Any high-volume move above the upper-end of its recent sideways trading chart pattern could trigger a big breakout trade for shares of OUTR post-earnings.

If you're bullish on OUTR, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 50-day moving average of $66.70 to $70 a share and then once it clears more key resistance levels at $70.44 to its 52-week high at $72.09 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 528,589 shares. If that breakout hits, then OUTR will set up to enter new 52-week-high territory above $72.09, which is bullish technical price action. Some possible upside targets off that breakout are $80 to $90 a share.

I would simply avoid OUTR or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $63 to its 200-day moving average of $61.11 a share with high volume. If we get that move, then OUTR will set up to re-test or possibly take out its next major support levels at $58 to $52 a share.

Twitter

My final earnings short-squeeze play is social media player Twitter (TWTR), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Twitter to report revenue of $217.78 million on a loss of 2 cents per share.

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Just this morning, RBC Capital analyst Mark Mahaney said Twitter's fourth quarter results could exceed analysts' consensus by a small amount, although it is difficult to gauge the company's fundamentals. Also this morning, Wedbush analyst Shyam Patil said that Twitter benefited from strong spending on its platform last quarter and some advertisers are beginning to dedicate a set amount of money to Twitter in their budgets. However, Patil said Twitter's fourth quarter results are likely to be in-line with analysts' consensus estimates, and investors should wait for a better entry point before buying the shares.

The current short interest as a percentage of the float for Twitter is very high at 15%. That means that out of the 284.36 million shares in the tradable float, 32.69 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 11.3%, or by about 3.31 million shares. If the bears get caught pressing their bets into a bullish quarter, then shares of TWTR could rip sharply higher post-earnings as the bears rush to cover some of their bets.

From a technical perspective, TWTR is currently trending above its 50-day moving average, which is bullish. This stock recently formed a double bottom chart pattern at $55.59 to $56.10 a share. Following that bottom, shares of TWTR have started to uptrend and break out above some near-term overhead resistance at $64.69 a share. That move is quickly pushing shares of TWTR within range of triggering an even bigger breakout trade post-earnings into new all-time-high territory.

If you're in the bull camp on TWTR, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key near-term overhead resistance levels at $70.43 a share to its all-time high at $74.73 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 21.88 million shares. If that breakout hits, then TWTR will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $80 to $90 a share.

I would avoid TWTR or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some near-term support at $60 a share with high volume. If we get that move, then TWTR will set up to re-test or possibly take out its next major support levels at those double bottom prices of $56.10 to $55.59 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short-Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Sunday, February 2, 2014

Innovations that will transform home of the future

Magnets will soon do more than display kids' artwork on refrigerators. They'll actually be inside fridges, making them super efficient.

A new material that cools when demagnetized, expected to hit the market in about five years, could revolutionize the world of fridges and air conditioners by replacing the decades-old use of refrigerants.

"This technology has the potential to be more efficient by 25% to 30%," says Natarajan Venkatakrishnan, director of advanced technologies for GE Appliances, which has patents pending for the material. He says it's ready now, but General Electric is working to lower costs so consumers won't have to pay more.

Welcome to the home of the not-so-distant future. In an age of Google glasses and smart watches, the American dream itself will likely embody innovative technologies that could not only save energy and water but also improve health and bring nature inside.

GE expects the home of 2025 could have under-cabinet 3D printers, faucet sensors that detect bacteria in food and a laundry machine that stores clothes — after washing and drying — in compressed "pellet" form. And the milkman of yore may be back, as more groceries are delivered to exterior cooling units.

Some of these ideas may seem far-fetched, but recent breakthroughs and exhibits at last month's GreenBuild in Philadelphia — the annual meeting of the U.S. Green Building Council — reveal dozens of nifty products that are new or will soon be released.

Mushrooms and hemp, for example, are being used in insulation. At GreenBuild, New York-based Ecovative unveiled Myco Foam, which contains mycelium — mushroom "roots" that provide an airtight seal by growing and binding to the inside of a wall cavity. Also new are prefabricated panels of Hemcrete, made from the shiv or woody core of industrial hemp and a limed-based binder.

New technologies are helping to boost efficiency. Last month, Panasonic introduced Exterios, a combined heating-and-cooling system that's at le! ast twice as efficient as most furnaces and air conditioners. It has inverter technology that continually adjusts the compressor's rotation speed as well as a sensor that detects whether someone is in a room and automatically adjusts the temperature.

More innovation is coming. "There's tremendous runway still left with energy efficiency," says John Mandyck, vice president of sustainability at United Technologies, which is now making solar-powered elevators. "What's really exciting about the future is the integrated building or home — how all the systems work together."

• Automation. What's making this integration possible is the explosion in smart products — appliances, lights, shades.

This year, Whirlpool introduced four higher-end appliances — a dishwasher, fridge, washer and dryer — that can be remotely controlled with a smartphone app. Users can monitor energy rates and consumption.

Crestron has shades and draperies that can be remotely lowered or raised. "We see a lot of residential users putting in photo-cell sensors," says marketing manager Claudia Barbiero, noting these sensors automatically adjust window coverings depending on how much daylight enters a room. She says automation is especially helpful to homeowners with huge picture or second-story windows.

Several companies, including Crestron, have recently introduced home automation devices that allow users to set security alarms, turn lights on or off, program a room's temperature or start a load of laundry. Other gizmos allow access to data on smart meters, which track a home's energy use and report it back to the utility.

"Coming to a home near you very soon are small devices that can fit in the palm of your hand and will be able to read your smart meter," says Michel Kamel, CEO of California-based MelRok, adding they'll cost less than $100 and will help residents manage their energy use. Early next year, his company will release its own version.

"We can measure and control everything �! � every o! utlet, every light switch, every mechanical system and every fixture," says David Gottfried, founder of the U.S. Green Building Council. He estimates monitoring can help consumers save 30% to 50% of energy and water.

• Smart windows. Another product that can be remotely operated, via an iPad app, is new electrochromic window glass. SageGlass Simplicity, a glazing for windows in commercial buildings that can be darkened or lightened to control glare and heat gain, made its debut last month.

Pricey windows that can be tuned, like an engine, are starting to enter the residential market, as well. Last year, View (formerly Soladigm), began selling windows with thin-film electrochromic material between the panes. When a low-voltage current is applied, the material can reflect or absorb light and change the glass' color.

Hot Medical Companies To Own For 2014

A smarter, less costly window is in the works. The U.S. Department of Energy's Lawrence Berkeley National Laboratory announced in August that it designed a new material — a thin coating of nanocrystals embedded in glass that can modify sunlight as it passes through a window.

"When used as a window coating, our new material can have a major impact on building energy efficiency," Delia Milliron, a Berkeley Lab chemist who led the research, said in announcing the breakthrough. The coating can control both visible and heat-producing near-infrared light so occupants can enjoy natural light without unwanted heat.

In October at the 2013 Solar Decathlon in Irvine, California, Middlebury College showcased a home that's powered by solar panels atop an exterior walkway. ! Its stude! nts say this approach, as shown here in a sketch, allows the house to face the street with the panels can face the sun.(Photo: Courtesy of Middlebury College)

• Solar canopies. Rooftop solar is booming nationwide as more companies offer leasing options that allow customers to installs panels atop their home with no upfront costs. Now, solar is moving beyond the roof.

Next year, Princeton-based NRG Energy will begin selling the gazebo-like Solar Canopy, which has solar panels on top. Once assembled, the modular kits could enable homes to go off grid or, by storing energy in batteries within the canopy, provide back-up power in case the grid goes down.

"In the wake of Hurricane Sandy's destruction, NRG began to take a more urgent look at providing a solution that could meet basic power needs in the event of a grid emergency," Tom Doyle, CEO of NRG Solar, said while unveiling the product in October.

Also next year, Quebec-based Renewz plans to begin selling residential Solar Charging Carports for about $30,000, says company CEO Sass Peress. The carport generates solar power that can be used to charge an electric vehicle or to supplement a home's energy.

Walkways may also go solar. At this year's Solar Decathlon, a bi-annual competition to see which university team can build the best solar home, Vermont's Middlebury College put solar panels atop an exterior walkway, providing a shaded entry to the house and optimal orientation to the sun.

"Our house can orientate to the street whereas our solar panels can orientate to the sun," says Cordelia Newbury, Middlebury's team manager. "This allows for anyone in a residential community to have solar."

• One-gallon flush. Toilets that used five gallons of water per flush were once the industry norm, but new ones use 80% less.

Kohler unveiled a product last year that uses 1.28 gallons per flush. Instead of relying on a flapper that only partially opens during a flush, it uses an AquaPiston canister that lifts comple! tely off ! the valve, allowing water from 360 degrees to swoop in.

This year, after years of development, Toto introduced the 1G, a toilet that uses only one gallon. Its secret is a "Double Cyclone" flushing system, which uses two nozzles, rather than rim holes, to propel water more efficiently around the bowl

Consumers are seeking more efficient toilets, because water bills are often rising faster than electric ones, says Toto's Jason Fitzsimmons.

Modular kits to grow plants on walls or shelves inside a home are proliferating as consumers look to bring nature inside. Some systems were on display in November at the 2013 GreenBuild at the Pennsylvania Conference Center in Philadelphia.(Photo: Wendy Koch)

• Living walls. One of the most dramatic changes at this year's Solar Decathlon and GreenBuild was the plethora of wall and shelving products for growing plants.

"We've seen a great increase in living walls in the residential market," says Ryan Burrows of New Jersey-based EcoWalls, which debuted a "chef's wall garden" earlier this year that cultivates herbs and veggies.

Modular units that are easy to install and maintain are gaining popularity, says Curtis Alexander of Urban Jungle, a Philadelphia company that installs such systems for about $140 per square foot — excluding irrigation costs.

"People want more green in their lives," he says, adding he expects bio-walls — now typically 200 to 500 square feet — will get bigger.

"They're helping people connect to nature," says Nadav Malin, president of BuildingGreen, a company that researches eco-friendly building products. He says he's not yet convinced that small bio-walls improve indoor air quality as their advocates suggest, but he adds: "There's a strong ps! ychologic! al benefit."

A Top Growing Public Company in Minnesota

In a macro view, revenues in the electronic equipment and instrument sub-industry will remain strong due to the rise in equipment and instrument manufacturers. Distributors, electronic manufacturing service (EMS) companies and original equipment manufacturers (OEM) are going to increase orders as the economy improves in the future. With this promising outlook, let's take a look at Gabelli´s last trade and try to explain to investors the reasons of this appealing investment opportunity.

On Nov. 21, Mario Gabelli bought Mocon Inc. (MOCO), a company which makes equipment to test packages and packaging material, and performs consulting and analytical services.

Good Revenue Growth

In Q3, revenues were $14.2 million vs. $12.3 million in the prior year, growing by 15% year to year, and considering the nine months ended in September the growth rate was 22% year over year. The three segments have done well, sales in the Permeation group increased 20%; and sales in the Package Testing group increased 14% due to a good product mix. Moreover, sales in the Industrial Analyzer group increased 8%. Additionally, after acquiring Denmark-based PBI-Dansensor A/S (Dansensor), the company seeks to expand its presence outside the U.S. (Europe) and in the MAP technology market, where we think is a perfect complimentary fit for the firm.

Dividends in a Growing Industry

The current dividend yield is 3.1% outperforming not just the industry average (1.91%), but also the company Electro-Sensors, Inc. (ELSE) with a 3% dividend yield. So dividends are considered good to protect the purchasing power and might attract investors, because is a good option for them to receive cash while they are waiting for more upside appreciation.

Valuation

In terms of valuation, the stock sells at a trailing P/E of 20.4x, trading at a premium compared to an average of 17.6x for the industry. To use another metric, its price-to-book ratio of 2.1x indicates a premium versus the industry average of 1.31x ! and the price-to-sales ratio of 1.35x is above the industry average of 0.8x.

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. Since 2010, while Electro-Sensors ROE is growing, Mocon's low ROE is not attractive and is also declining. Although the ROE has a downward trend, the ratio has improved when compared to its ROE from the same quarter one year prior.

[ Enlarge Image ]

Final Comment

Mocon´s revenue growth has outpaced the industry average (21.8% vs 4.5%). I expect this trend to continue as well as the significant earnings per share improvement registered in the last quarter. Despite of having found a major weakness in the result of ROE, the firm has other highlights as its revenue growth seen before and the dividend yield which makes me think that is a possible good addition to investor´s dividend portfolio.

Hedge fund managers have also been active in the company. Hedge fund gurus like Jim Simons and Bill Frels have invested in it.

Disclosure: Victor Selva holds no position in any stocks mentioned.

Also check out: Bill Frels Undervalued Stocks Bill Frels Top Growth Companies Bill Frels High Yield stocks, and Stocks that Bill Frels keeps buying Jim Simons Undervalued Stocks Jim Simons Top Growth Companies Jim Simons High Yield stocks, and Stocks that Jim Simons keeps buying

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