Friday, November 29, 2013

5 Best Undervalued Stocks To Buy Right Now

Since 2007, we had an undervalued market, as measured by the standard averages. I no longer think this is the case. Fortunately, however, we are not buying based on averages, notes Russ Kaplan, editor of Heartland Advisor.

We are buying individual companies and there are still many which we think qualify as buy candidates. Because of this, I do not recommend changing strategies. We do, however, see the need to be much more selective.

I first recommended Deere & Company (DE) in 1998. Since then the price has more than doubled and the dividend has been above average. So why buy it now?

I look for a price which is below intrinsic value (how much the company is really worth). This is the case with Deere, since its intrinsic value has grown more than the price at which the stock is now trading.

Back in 1837, when the Industrial Revolution was starting, and agriculture was moving beyond the horse and wooden plow, Deere was established. Their first invention and product was the steel plow, which ensured improvement for planting deeper rows.

5 Best Undervalued Stocks To Buy Right Now: Dollar Tree Inc.(DLTR)

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

Advisors' Opinion:
  • [By Paul Ausick]

    Big Earnings Movers: Target Corp. (NYSE: TGT) is down 3.5% at $64.19. Sears Holdings Corp. (NASDAQ: SHLD) is down 2.9% at $59.93 on a wider loss and tepid outlook. Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) is up 14.1% at $70.57 indicating that investors liked the results posted after markets closed on Wednesday. Dollar Tree Inc. (NASDAQ: DLTR) is down 4.5% at $56.28. Abercrombie & Fitch Inc. (NYSE: ANF) is down 0.1% at $34.97.

  • [By Rich Duprey]

    Deep discounter Dollar Tree (NASDAQ: DLTR  ) announced today that its current chief operating officer, Gary Philbin, will now also carry the title of president, a position previously held by company CEO Bob Sasser.

  • [By Dan Moskowitz]

    The shiniest dollar
    Many investors and analysts like to debate which dollar store offers the best investment opportunity. The truth is that Dollar General, Dollar Tree Stores (NASDAQ: DLTR  ) , and Family Dollar Stores (NYSE: FDO  ) are all likely to be quality long-term investments.

5 Best Undervalued Stocks To Buy Right Now: Tupperware Corporation(TUP)

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

Advisors' Opinion:
  • [By Brian Pacampara]

    Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, household products company Tupperware Brands (NYSE: TUP  ) has earned a coveted five-star ranking.

  • [By Eric Volkman]

    Tupperware Brands (NYSE: TUP  ) is reaching into its corporate bowl for a fresh payout to shareholders. The company has declared a quarterly dividend of $0.62 per share. This will be paid on July 8 to stockholders of record as of June 19. That amount matches the firm's previous distribution, which was paid in early April. Prior to that, Tupperware Brands was rather less generous, handing out $0.36 per share.

  • [By Monica Gerson]

    Tupperware Brands (NYSE: TUP) is expected to report its Q3 earnings at $1.03 per share on revenue of $623.34 million.

    Varian Medical Systems (NYSE: VAR) is projected to post its Q4 earnings at $1.12 per share on revenue of $779.02 million.

10 Best Cheap Stocks To Own For 2014: Schlumberger N.V.(SLB)

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

Advisors' Opinion:
  • [By Maxx Chatsko]

    Industry ties
    The company's management team has deep roots in the energy industry, specifically in oilfield services. President and CEO Gary Kolstad spent 21 years at Schlumberger (NYSE: SLB  ) before joining CARBO, while Don Conkle, vice president of marketing and sales, spent 26 years at the same firm. No wonder Schlumberger is one of the top two customers for this proppant manufacturer. Both served in various roles at the company and are well versed in the ebbs and flows of the energy industry, which should serve investors well through the rocky environment of falling natural gas drilling activity.

5 Best Undervalued Stocks To Buy Right Now: Caterpillar Inc.(CAT)

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

Advisors' Opinion:
  • [By Anders Bylund]

    Other anomalies include Caterpillar (NYSE: CAT  ) falling 7% on slow investments in global infrastructure construction. Thanks to the CAT's large share price, this move dragged the Dow down by 47 points. For a sense of scale, that's more than the 40 points that Cisco Systems (NASDAQ: CSCO  ) brought to the table -- with a huge 27% move to the upside. Cisco's long-term vision of dominance across the data center is finally coming together and the market is responding strongly. But like I said, this 27% jump makes less of a difference to the Dow than Caterpillar's much smaller 7% move.

  • [By Alex Planes]

    Founded in 1925, Caterpillar (NYSE: CAT  ) is the world's largest manufacturer of construction and mining equipment, and ranked among the top 50 Fortune 500 companies in the U.S. for 2012. Caterpillar is also a component of both the Dow. Headquartered in Peoria, Ill., Caterpillar traces its roots from the merger of the Holt Manufacturing Company and the C.L. Best Tractor Company. The company has grown through a number of acquisitions over the past decade, including Shin Caterpillar Mitsubishi in 2008, Caterpillar Xuzhou and MWM Holding in 2010 and Bucyrus International in 2011. Caterpillar heavy machinery is as common at construction and excavation sites as Boeing's jets are at airports, which makes this a classic battle of land versus air.

  • [By Taylor Muckerman and Joel South]

    On the heels of a better-than-expected release from Peabody Energy (NYSE: BTU  ) and expectations from Caterpillar (NYSE: CAT  ) that coal prices could rise somewhat in 2013, both businesses might be set to succeed in tandem. The price of natural gas has been climbing rapidly to start 2013, which should help coal regain some traction. And its East Coast export facility continues to provide access to the demanding European market. In the following video, Taylor Muckerman expects some positive news on Thursday and thinks you should, too.

Why Your Clients Might Be Earning Too Much, and What to Do About It

Jason Hull is that rare financial advisor who thinks some of his clients should probably be earning and saving less and consuming more.

It should be noted that the Fort Worth, Texas, CFP’s clientele consists of small-business owners and people in “their late 20s, 30s and early 40s who have achieved financial independence.”

But Hull insists there is an important economic principle at stake that applies even to those who are not extremely wealthy. That is the idea that people prefer a smooth path of consumption, a paycheck as it were, to an alternating cycle of feast and famine.

To that end, even people of ordinary wealth may be guilty of trading in potential leisure time for earnings during their working years that can never be recovered.

As he put it on his popular blog: “Too little work, and we’re miserable when we stop working. Too much work, and we’re miserable while working and miserable afterwards because we rue the missed time.”

The young former Army officer knows of what he speaks, having founded a company and sold it last year before earning his CFP and establishing his RIA.

“Let’s think about the entrepreneur who has successfully built a company that is profitable, that can run without him or her,” Hull says in an interview with ThinkAdvisor.

“That entrepreneur is used to a 16-hour day…grind. So I find that with entrepreneurs going through that discussion and tying it to their personal goals, their values, what they want to get out of life causes them to make different decisions about their business than they might otherwise have made.

“There is life beyond your business; beyond your career,” he adds. “We sometimes get tunnel vision and we forget there is a finish line and once you cross it you stop running.”

The reason for that is another common principle of behavioral economics: inertia, the propensity people have to continue on their present course in linear fashion.

“I had a discussion just last week with an entrepreneur,” Hull says. “He is grossing mid-six digits a year that he’s pulling out of his business. I asked him ‘What’s next?’ He said he wants to earn $100 million. I asked him ‘Why?’ For him it was just a measuring stick; I personally feel there are better measuring sticks in life.”

For that behavioral bias, Hull proposes a simple behavioral solution. And that is to get clients to know their number—the vaunted sum needed for retirement. The reason is that knowing specifically what one needs frees a person to break out of the hamster wheel and live life more fully.

“It’s not necessarily that having a number means, ‘Oh, I’m going to retire now,’ the Hull Financial Planning principal says.

“Retirement isn’t the goal; financial independence is the goal because financial independence opens up options for you to pursue what you truly want to do.”

Hull cites the research of University of Chicago behavioral science professor Christopher Hsee, who conducted experiments rewarding people with chocolates or jokes appearing on a computer screen for work they performed.

Even though the participants couldn’t take the chocolates out of the lab (just as a person doesn’t take his wealth to the grave), people had a tendency to earn more than they consume. 

People also tended to earn so many jokes that they couldn’t read them anymore because they overwhelmed their computer screen space. But when Hsee asked some participants to predict in advance how many jokes they would like to see, that group tended to stop when they reached that number and were much happier than “higher earners” who had not made advance predictions.

To help his clients not over-earn and under-enjoy, Hull says it is essential to express clients’ “number” in terms of a monthly income. That is because a lump sum number “has no conceptual counterpart in their minds,” he advises.

“When you tell them it’s X-thousand dollars a month, then they can translate the retirement income into what they spend every month and the lifestyle they have.

“So if I spend $5,000 a month, the retirement number should translate into a safe withdrawal rate of $5K a month,” Hull says.

How do advisors determine their client’s number?

“It’s a function of what are their bequest motives. Do they want to leave their wealth to charity, to the kids or do they want to die broke? And what are the things they would like to shoot for but would be okay if they didn’t achieve? Then what is their current lifestyle and what is the bare minimum lifestyle that they’re going to have to have in order to gain retirement earlier?

“The next part is the safe withdrawal rate, which Wade Pfau and Michael Finke have done excellent research on.

“The third part is the decline in spending as you age and what I call ‘accounting for fogies:’ What are the significant downside risks I might face in later life, namely health care and long-term care?”

As for Hull, the financial planner doesn’t seem too stressed about his own financial ambitions.

“I sold a company. I have a good life. I want to be able to give back. I want other people to achieve the level of happiness I have.”

To that end, the planner is set to be a contestant on “Who Wants to Be a Millionaire?” on Monday in New York, and has pledged 50% of his winnings to the Wounded Warrior Project.

---

Check out Time to Retire the Idea of Retirement on ThinkAdvisor.

Thursday, November 28, 2013

5 Breakout Trades for the Final Stretch of 2013

BALTIMORE (Stockpickr) -- It's hard to believe, but the year is quickly drawing to a close. Monday kicks off the first trading session in December.

What a year it's been: Year-to-date, shares of the S&P 500 are up a staggering 26.4%, catching bears (and even some bulls) by surprise since the first trading session in January. But it's a little early to start wrapping up the books for 2013. After all, December is typically no-slouch when it comes to performance numbers.

Since 1926, buying stocks in the final month of the year has been a pretty good strategy. Even during the market crash of 2008, December brought a reprieve from the selloff, shedding just 2.62% from the S&P's value. Even with a tailwind for the big indexes, selectivity still matters. By focusing on high-probability trades (and skirting underperformers), you can wring out the biggest returns in the final stretch of 2013.

That's why we're taking a technical look at five big-name trades to take this week.

If you're new to technical analysis, here's the executive summary.

Technicals are a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time.

Every week, I take an in-depth look at big names that are telling important technical stories. Here's this week's look at five high-volume stocks to trade this week.

Stericycle

First up is $10 billion medial waste disposal company Stericycle (SRCL). While SRCL has more or less only kept pace with the broad market in 2013, shares are at the point where they're looking primed to pop into December trading. Here's why.

Stericycle is currently forming an ascending triangle setup, a bullish price pattern that's formed by a horizontal resistance level above shares at $120 and uptrending support to the downside. Basically, as SRCL bounces in between those two technically-important price levels, it's getting squeezed closer and closer to a breakout above the $120 level. When that breakout happens, we've got a buy signal.

Whenever you're looking at any technical price pattern, it's critical to think in terms of those buyers and sellers. Triangles and other pattern names are a good quick way to explain what's going on in a stock, but they're not the reason it's tradable – instead, it all comes down to supply and demand for shares.

That $57 resistance level is a price where there has been an excess of supply of shares; in other words, it's a place where sellers have been more eager to step in and take gains than buyers have been to buy. That's what makes a breakout above it so significant -- the move means that buyers are finally strong enough to absorb all of the excess supply above that price level.

Since HSBC is a longer-term pattern, the 200-day moving average is the spot to keep a stop loss after buying. It's been a pretty good proxy for support on the way up.

Apple

Despite a shaky start to 2013, Apple (AAPL) has been on a tear since the summer. I've been a fan of the stock for a while now too -- and I've still have a position in AAPL shares. After spending November in sideways-mode, AAPL looks ready to move higher again.

After moving up close to 20% off of September's swing low, Apple has been consolidating sideways in a rectangle pattern. The rectangle is a price setup that's formed by a horizontal resistance level above shares at $535, and another horizontal support level down at $510. The rectangle gets its name because it essentially "boxes in" shares. The high-probability trade comes when Apple exits its channel – a move through $535 is a buy signal.

Apple's relative strength, a measure of this stock's performance versus the broad market, has been on fire for the last six months. From a statistical standpoint, an uptrend in RS is a very good indication that shares will continue to do well in the medium-term.

I'm holding on from here.

Anadarko Petroleum

Meanwhile, things are looking a little simpler in shares of Anadarko Petroleum (APC). You don't have to be an expert technical analyst to figure out what's going on in shares of the $45 billion E&P firm -- a quick glance at the chart should do.

Anadarko is currently forming an uptrending channel, a price setup that's about as basic as a technical pattern gets: up is good, down is bad. The channel provides traders with a high-probability range for shares to stay within -- and now, with APC testing trendline support, traders are coming up on a big buying opportunity in this stock. After all, buying the last five bounces off of trendline support has been a good strategy this year.

Buying off a support bounce makes sense for two big reasons: It's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). Remember, all trend lines do eventually break, but by actually waiting for the bounce to happen first, we're ensuring Anadarko can actually still catch a bid along that line.

Keep a close eye on this name -- we could get the bounce in today's session.

General Electric

Not all of the setups we're looking at today are bullish. Right now General Electric (GE) is looking anemic in the short term. GE is currently forming a rounding top, a pattern that looks just like it sounds. The rounding top indicates a shift in control of shares from buyers to sellers, and it triggers a sell (or short) signal on a move through the $26.50 breakdown level.

The setup in GE is relatively small, and that means that the trading implications to the downside are relatively contained too -- but that also means that GE is likely to be a serial underperformer during December, a month when it makes sense to take advantage of better relative strength.

The uptrend break in RSI on the upper chart just adds some fuel to the fire for GE. Shares had been overbought coming into the rounding top pattern, and if shares can't catch a bid any longer at $26.50, expect a pretty quick move lower.

To see this week's trades in action, check out this week's Must-See Charts portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

Wednesday, November 27, 2013

Is Ford Motor Well-Positioned for the Future?

With shares of Ford Motor (NYSE:F) trading around $16, is F an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Ford is a producer of cars and trucks. The company also engages in other businesses, such as financing vehicles. Ford operates in two sectors, automotive, and financial services. Through its sectors, Ford provides a wide range of vehicles, vehicle parts, and services to a multitude of consumers and companies worldwide. The company's products saw declining demand in the past several years as gasoline prices took a major toll on pockets. Ford is now revolutionizing its vehicles in order to compete on the world stage. Look for Ford to fuel a recovery in the American automobile industry and provide highly demanded vehicles, parts, and services.

Ford will be investing $150 million into its plant in Buffalo, New York, in the stamping facility that is slated to make parts for the next-generation Edge crossover. The Detroit News reports that the money will buy 25 new sub-assembly stations to produce hoods, doors, and fenders, and more than 500 new dies plus equipment upgrades. The Buffalo plant, which opened in 1950, will see about 350 new jobs, hiking the plant's total employment to about 1,000.

T = Technicals on the Stock Chart Are Mixed

Ford stock has been coasting higher over the past several months. The stock is currently trading sideways and may need time to consolidate before heading higher. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Ford is trading between its rising key averages, which signal neutral price action in the near-term.

F

(Source: Thinkorswim)

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

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Ford Options

24.78%

20%

18%

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

Put IV Skew

Call IV Skew

December Options

Average

Average

January Options

Average

Average

As of today, there is an average demand from call and put buyers or sellers, all neutral over the next two months. To summarize, investors are buying a minimal amount of call and put option contracts and are leaning neutral over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

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

2013 Q3

2013 Q2

2013 Q1

2012 Q4

Earnings Growth (Y-O-Y)

-69.00%

15.38%

14.29%

-88.17%

Revenue Growth (Y-O-Y)

11.84%

14.71%

10.37%

5.34%

Earnings Reaction

1.37%

2.53%

-0.22%

-4.64%

Ford has seen mixed earnings and increasing revenue figures over the last four quarters. From these numbers, the markets have been optimistic about Ford’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has Ford stock done relative to its peers, General Motors (NYSE:GM), Toyota Motor (NYSE:TM), Tesla Motors (NASDAQ:TSLA), and sector?

Ford

General Motors

Toyota Motor

Tesla Motors

Sector

Year-to-Date Return

30.35%

30.71%

34.02%

255.80%

32.69%

Ford has been an average relative performer, year-to-date.

Conclusion

Ford is a well-established vehicle products and services producer distributed in a multitude of countries across the globe. The company will be investing $150 million into its plant in Buffalo, New York, in the stamping facility that is slated to make parts for the next-generation Edge crossover. The stock has been rising higher in recent years and is now trading sideways. Over the past four quarters, earnings have been mixed while revenues are increasing which has left investors optimistic about recent earnings announcements. Relative to its peers and sector, Ford has been an year-to-date average performer. WAIT AND SEE what Ford Motor does this quarter.

Tuesday, November 26, 2013

HighTower, on a Tear, Picks Up Another Merrill Firm, Adds Partner

LCK Wealth Management in New York, formerly affiliated with Merrill Lynch Wealth Management’s Private Banking & Investment Group, has joined HighTower, with the firm’s leader, Laurie Kamhi, becoming a partner and managing director of the Chicago-based firm. LCK is the 41st team to move to HighTower since the firm’s inception in 2008; Kamhi and her partners, Christine Torrey and Karman Tong, will be based in HighTower’s Midtown New York headquarters.

LCK is the third ex-wirehouse team to join HighTower in as many weeks. The first was Klein Wealth Management, based in Melville, N.Y., and led by Peter Klein, a former UBS advisor. Second was another former Merrill Lynch advisor team, The Andriole Group of Madison, Conn., led by Michael Andriole.

The addition of LCK Wealth reflects the type of firm that is attracted to HighTower, and its desire to bring on more firms led by women, said Michael Parker, HighTower’s national director of enterprise development. Kamhi, he said, is “one of the top female advisors in the industry, and has been for some time,” praising her for being “particularly adept in dealing with high-net-worth and ultra-HNW clients.” Moreover, Parker said “we want to grow that demographic of this business; if we’re trying to grow market share, we need top-caliber women advisors so you can capture that market.”

While attracting female advisors is a focus, Parker said “we won’t sacrifice for quality, for caliber, for fiduciary-minded, sophisticated advisors” who are increasingly attracted to one of HighTower’s multiple models of affiliation.

While acknowledging that adding three teams in one month is "is significant” for HighTower, Parker said all three teams who’ve joined this month “are very careful in their due diligence; it takes months.” Even when they know someone who’s already joined HighTower, which is becoming more and more the case, he said, those teams “still have to go through their own due diligence process.”

That process includes getting answers to three primary questions, Parker said. First, is whether a move to HighTower would benefit their clients. “Does an unconflicted, transparent, fiduciary model improve their relationship with their clients?”  Second is whether the HighTower culture is better for them. “Is HighTower made up of advisors like themselves?” Finally, they want to know what kind of support they’ll receive for their practice compared to what they enjoyed at their former wirehouse employers.

Parker said that the motivation for those who do move is less about “getting away from something else; they’re attracted to the model.” That’s particularly the case for successful advisor teams who begin to wonder about their succession plans and their legacy, he said.

While the LCK team will work out of HighTower’s 42nd Street office in New York, Parker said HighTower is geographically interested in “markets with growth opportunities,” but says “we’ve built the scale to go into smaller markets as well.”

Top 5 Canadian Stocks To Own For 2014

What’s the pipeline look like? “There are more (advisor teams) than we’re looking to bring on; the activity this quarter is a reflection of what the pipeline is like,” Parker says, adding that the level of interest has led him to add members to his business development team. The first source filling the HighTower pipeline is “coming from our existing, incumbent advisors; those are the kinds of referrals you want.” The second source of recruiting comes from “high-caliber firms” that know someone else who’s made the move from a wirehouse to HighTower, while the third source is “introductions from all the people we know” in HighTower’s leadership team and the business development team. Parker oversees both the recruiting process and transition planning, with the business development team working with a relationship management person who becomes the single point of support for transitioning teams.

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Check out HighTower Growth Continues With Andriole Group From Merrill on ThinkAdvisor.

Monday, November 25, 2013

5 Best Sectors to Watch This Week

RSS Logo Portfolio Grader Popular Posts: 9 Biotechnology Stocks to Buy Now17 Oil and Gas Stocks to Sell Now10 Worst “Strong Sell” Stocks This Week — EGO WLT RBY and more Recent Posts: 5 Best Sectors to Watch This Week 4 Capital Markets Stocks to Sell Now 3 Medical Devices Stocks to Sell Now View All Posts

This week, Household Products, Water Utilities, Leisure Goods, Infrastructure, and beverages are the best sectors on the Portfolio Grader database.

With 100% of the sector’s stocks (9 out of 9) rating a “buy,” the household products sector is one of the strongest. Out of the household products stocks, The Clorox Company (), Church & Dwight Co., Inc. (), and Colgate-Palmolive Company () are out front with A’s. The best performer in this sector is Church & Dwight Co., Inc., which saw its price jump up 45.9% in the last 12 months. This is better than the S&P 500, which has seen a 16.6% increase over the same period.

The water utilities sector is thriving on Portfolio Grader this week, with 100% of its stocks (6 out of 6) currently rating a “buy”. American States Water Company (), Aqua America, Inc. (), and American Water Works Company, Inc. () are all currently earning A’s. American Water Works Company, Inc. is the top stock in its sector, with a 35.6% increase from 12 months ago.

Leisure goods stands out with 100% of the sector’s stocks (7 out of 7) rating a “buy”. Among leisure goods stocks, Mattel, Inc. (), Smith & Wesson Holding Corporation (), and Brunswick Corporation () are leading the way with B’s. Showing the most overall growth in its sector in the last 12 months, Brunswick Corporation is the top stock, with a 180.5% increase.

The infrastructure sector’s track record is proving one of the best with 80% of its stocks (4 out of 5) rating a “buy”. Grupo Aeroportuario del Pacifico SAB de CV Sponsored ADR Class B (), Grupo Aeroportuario del Sureste SA de CV Sponsored ADR Class B (), and Grupo Aeroportuario del Centro Norte SAB de CV Sponsored ADR Class B () are lifting the sector overall, each earning a high grade of A. Grupo Aeroportuario del Sureste SA de CV Sponsored ADR Class B is the best performer in this sector, with a 130.4% increase in the last 12 months.

10 Best China Stocks To Watch For 2014

Beverages is thriving this week with 70% of stocks in the sector (16 out of 23) currently rating a “buy”. With overall grades of A, Diageo plc Sponsored ADR (), Coca-Cola FEMSA SAB de CV Sponsored ADR Class L (), and The Boston Beer Company, Inc. Class A () are buoying the sector. The Boston Beer Company, Inc. Class A is performing the best overall in the sector, with a 136.1% increase from 12 months ago.

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Saturday, November 23, 2013

European Stocks Decline Amid U.S. Budget, Debt Gridlock

European stocks declined to a one-month low amid concern that the impasse over the U.S. budget and debt limit may lead to a default.

Alcatel-Lucent SA (ALU) slid 6.9 percent after French Prime Minister Jean-Marc Ayrault said the network-equipment maker's restructuring plans won't be approved without an agreement limiting job cuts. Cie. de Saint-Gobain SA fell 3.7 percent as Morgan Stanley cut its rating on Europe's biggest supplier of building materials. Taylor Wimpey Plc rose 5.2 percent as Goldman Sachs Group Inc. added it to a conviction buy list.

The Stoxx Europe 600 Index slipped 0.6 percent to 305.13 at the close of trading, for a third day of losses. The benchmark has fallen 1.5 percent this week after U.S. House Speaker John Boehner said he will attach conditions before backing a bill to raise the federal borrowing limit and as the first shutdown of the federal government in 17 years continues.

"Investors' patience with U.S. politicians changed," Henrik Drusebjerg, who helps oversee $220 billion as a senior strategist at Nordea Bank AB in Copenhagen, said by telephone. "Faith has been diminished. Whatever comments we get from the negotiations, they don't seem to be any closer to a political solution."

President Barack Obama said yesterday that the U.S. economy risks a "very deep recession" if Congress doesn't raise the debt ceiling. He spoke after calling Boehner to "reiterate that he won't negotiate on a government-funding bill or debt-limit increase," said Brendan Buck, a Boehner spokesman.

Tentative Steps

Still, lawmakers began taking the first tentative steps toward a path to raising the limit even as the rhetoric grew more divisive. Senate Democrats plan a test vote before the end of this week on a measure that would grant Obama authority to raise the ceiling, probably for a year, unless two-thirds of both chambers of Congress oppose.

The Treasury has said that it will exhaust measures to avoid exceeding the borrowing limit on Oct. 17. If that happens, the government will run out of cash to pay all of its bills at some point between Oct. 22 and Oct. 31, according to the Congressional Budget Office.

"The shutdown overshadows all other topics," Soeren Steinert, who helps manage about $24 billion as associate director for equities trading at Quoniam Asset Management GmbH in Frankfurt, wrote in an e-mail. "Fear is increasing every day a little more because of a possible U.S. default and that hits sentiment. Markets are listening to every small comment from Democrats and Republicans and uncertainty is very high."

Yellen Nominated

Obama will nominate Janet Yellen as chairman of the Federal Reserve, which would put the world's most powerful central bank in the hands of a key architect of its unprecedented stimulus program and the first female leader in its 100-year history.

Obama will announce the nomination at 3 p.m. today in Washington, a White House official said in an e-mailed statement. Yellen, 67, would succeed Ben S. Bernanke, whose term expires on Jan. 31.

Alcoa Inc., (AA) the largest U.S. aluminum producer, reported better-than-expected quarterly earnings yesterday after its smelting business returned to profitability and results improved at a unit that makes auto and aerospace parts.

National benchmark indexes retreated in 13 of the 18 western European markets. The U.K's FTSE 100 slipped 0.4 percent, France's CAC 40 fell 0.2 percent and Germany's DAX lost 0.5 percent.

The volume of shares changing hands in Stoxx 600-listed companies was 19 percent higher than the 30-day average, data compiled by Bloomberg show.

Alcatel-Lucent Cuts

Alcatel-Lucent slid 6.9 percent to 2.58 euros, its biggest drop since Jan. 8. Ayrault said he wanted negotiations to limit job cuts. "If there is no accord, this restructuring won't be approved," he said on Europe1 radio.

Alcatel said on Oct. 8 that it will eliminate 10,000 jobs as Chief Executive Officer Michel Combes accelerates a 1 billion-euro ($1.4 billion) cost-cut plan to revive the unprofitable company.

Saint-Gobain (SGO) dropped 3.7 percent to 36.87 euros. Morgan Stanley cut its rating on the stock to underweight, similar to a sell recommendation, from equal weight, saying it doesn't see a recovery yet in the European building industry and the contribution from emerging markets will slow.

Vedanta Resources Plc (VED) slid 4.7 percent to 1,020 pence, its lowest price in three months. The India-focused metals and oil producer said fiscal second-quarter copper output in Zambia declined 26 percent and iron-ore mining in Karnataka state remains halted.

Celesio Declines

Celesio AG lost 2.6 percent to 19.96 euros. Commerzbank AG downgraded the drug wholesaler to hold from buy, citing the risk that its majority shareholder, Franz Haniel & Cie GmbH, may not allow McKesson Corp. to gain control of the business. Celesio jumped 20 percent yesterday as Dow Jones reported that McKesson has started talks with Franz Haniel about acquiring the company.

EDP-Energias de Portugal SA, the nation's biggest utility, slipped 2.1 percent to 2.47 euros after Goldman put the company on its conviction-sell list.

Wimpey advanced 5.2 percent to 103.8 pence. Goldman added the U.K.'s second-largest homebuilder by volume to its conviction buy list, citing its exposure to the domestic housing-market recovery.

Telecom Italia SpA (TIT) jumped 6.2 percent to 65.6 euro cents. The phone company that was stripped of its investment-grade rating is seeking at least 9 billion euros for its controlling stake in Brazilian wireless carrier Tim Participacoes SA (TIMP3), according to a person with direct knowledge of the matter.

Friday, November 22, 2013

SIFMA's Gregg optimistic that default can be avoided

The head of a major Wall Street trade association expressed optimism Friday that congressional leaders and the Obama administration can reach a budget agreement that will lift the debt ceiling.

“Things are moving away from a default,” Judd Gregg, chief executive of the Securities Industry and Financial Markets Association, said in a media conference call.

On Friday morning, House Speaker John Boehner, R-Ohio, began a meeting with his Republican colleagues by saying that the party would not allow the debt ceiling to be breached, according to an aide to one of the lawmakers in attendance.

The Treasury Department has indicated that the $16.7 trillion debt ceiling must be raised by Oct. 17 or the agency will run out of funds to service the nation's obligations. A deadlock over the federal budget has led to a government shutdown that began on Oct. 1.

Best Performing Stocks To Invest In 2014

The budget impasse is threatening to continue beyond the debt deadline. In a report on Thursday, the Treasury Department predicted that a default would cause a spike in interest rates and a stock market decline, among other setbacks.

Mr. Gregg is encouraging Congress to avoid that outcome by working out a deal that addresses the budget, sequestration, debt ceiling and entitlement and tax reform.

“I would hope that they will reach some kind of mini-grand bargain,” said Mr. Gregg, a former New Hampshire senator and governor.

Over the past few days, SIFMA has been among the most vocal business organizations warning Congress not to violate the debt ceiling.

“A default is unacceptable,” Mr. Gregg said.

SIFMA has been examining how the financial markets might react in the event of a U.S. debt default.

“No scenario is clean, and some scenarios are catastrophic,” said Rob Toomey, SIFMA's managing director and associate general counsel.

Thursday, November 21, 2013

10 Worst “Strong Sell” Stocks This Week — EGO WLT RBY and more

RSS Logo Portfolio Grader Popular Posts: 17 Oil and Gas Stocks to Sell Now7 Biotechnology Stocks to Buy Now3 Oil and Gas Stocks to Buy Now Recent Posts: 10 Restaurant and Resort Stocks to Buy Now 10 Worst “Strong Sell” Stocks This Week — EGO WLT RBY and more 5 Stocks With Awful Earnings Surprises — WPC CBB ROMA MOD NX View All Posts

This week, these ten stocks have the worst year-to-date performance. Each of these also rates an “F” (“strong sell”) on Portfolio Grader. Since the beginning of the year, the Nasdaq is up 10.9%, the Dow increased 13.2%, and the S&P has risen 12.1%.

Since the first of the year, Eldorado Gold Corporation () has dipped 48.8%. Eldorado Gold acquires, explores, and develops mineral properties. The stock has a trailing PE Ratio of 29.40. .

Shares of Walter Energy () have fallen 50.6% since January 1. Walter Energy is a producer and exporter of metallurgical coal for the global steel industry. As of Nov. 20, 2013, 13.3% of outstanding Walter Energy shares were held short. .

Shares of Rubicon Minerals Corporation () have slumped 52% since January 1. Rubicon Minerals explores for gold deposits in the Red Lake gold camp of Canada, as well as Nevada and Alaska. Trade volume is up 204.6% from the previous week. .

Since the first of the year, Molycorp, Inc. () has tumbled 52.5%. Molycorp produces rare earth products, including oxides, metals, alloys and magnets for a variety of applications including clean energy technologies, technology, and defense applications. As of Nov. 20, 2013, 21% of outstanding Molycorp, Inc. shares were held short. .

The price of J. C. Penney Company, Inc. () is down 54.1% since the first of the year. J. C. Penney operates department stores in the United States and Puerto Rico. As of Nov. 20, 2013, 26% of outstanding J. C. Penney Company, Inc. shares were held short. Shares of the stock have been changing hands at an unusually rapid pace, up 208.7% from the week prior. .

Since the first of the year, IAMGOLD Corporation () has dipped 58.9%. Iamgold is involved in the exploration for, and development and production of mineral resource properties throughout the world. .

Shares of Gold Fields Limited Sponsored ADR () have dipped 62.2% since the first of the year. Gold Fields is engaged in the mining, exploration, extraction, processing, and smelting of gold. Shares of the stock are being traded at a very rapid pace, up 253.5% from the week prior. .

Since January 1, Harmony Gold Mining Co. Ltd. Sponsored ADR () has fallen 62.7%. Harmony Gold Mining is a mining company which produces gold from its operations in the district of Virginia, Orange Free State. Shares of the stock have been changing hands at an unusually rapid pace, up 163.5% from the week prior. .

The price of NII Holdings, Inc. Class B () has fallen 64.9% since the first of the year. NII Holdings provides mobile communications for business customers in Latin America. As of Nov. 20, 2013, 34.6% of outstanding NII Holdings, Inc. Class B shares were held short. .

Shares of Mechel OAO Sponsored ADR () have sunk 65.2% since the first of the year. Mechel is a Russian metals and mining company, uniting producers of steel, rolled products, hardware, coal, iron ore concentrate, and nickel. The number of shares changing hands has tapered off significantly in the past week, down 94.3%. .

Best Financial Stocks To Invest In 2014

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Wednesday, November 20, 2013

Breaking Bad economy: How Walt made $80 million

breaking bad cash

The $80 million profit Walt turned by selling meth for just one year is a very realistic sum for a true-life drug kingpin.

NEW YORK (CNNMoney) Walter White may be fictional. But the $80 million profit he turned by selling meth in less than a year is a very realistic sum for a true-life drug kingpin.

It's not until the last season of Breaking Bad that viewers learn just how much cash their favorite meth-making anti-hero has accumulated by cooking crank. The $80 million is a staggering sum for less than a year's worth of work.

But experts say that pallet full of cash portrayed in the show is realistic, given the economics of the meth trade.

"The show has a lot of reality to it," said Ralph Weisheit, a professor of criminal justice at Illinois State and an author of the book, "Methamphetamine: It's History, Pharmacology and Treatment." "It clearly employs consultants who know a lot of about the business," he added.

The story of a quiet high school chemistry teacher who built a crystal methamphetamine empire will air its series finale on Sunday, amid strong ratings for AMC Networks (AMCX) and even stronger buzz.

Walt's fortune is built on the premise that he's selling his meth at the modest price of about $60 a gram. That's spelled out in the fifth season episode "Hazard Pay," when Walt and his partners sell a 50 pound batch of their high quality blue meth for $1,379,560, after the commission that goes to street dealers.

According to Weisheit, $60 a gram "is not at all unreasonable, especially for meth of a very high quality."

"The price of meth varies wildly from one part of the country to another, and from one time a year to another, depending on supplies," he added. "It can go from $50 a gram to $150 a gram. It makes oil prices look stable."

It's a long way from $6! 0 for a gram of meth to the seven, 55-gallon drums of cash Walt has holding $80 million. But the volumes of meth on the show are enough to produce that mountain of cash. And the demand for the product is strong enough that Walt could move that much meth in less than a year, especially given his empire's expansion into eastern Europe this season.

Walt was able to make such a large volume of meth because he and his partners stole 1,000 gallons of the industrial chemical methylamine from a train. After the heist, Walt's partners want to sell the chemical for $15,000 a gallon, instead of cooking it up into meth and selling it.

On the black market, that's a reasonable price for the chemical, says Weisheit.

But Walt argues that if he cooks the methylamine, he and his partners can make far more money - somewhere between $300 million and $370 million. Using the retail price of $60 a gram, that means they'd have to sell between 11,000 and 13,500 pounds of meth.

And as it turns out, the 1,000 gallons of methylamine they stole would produce anywhere from 10,000 to 13,000 pounds of very pure meth, according to Steve Preisler, a chemist who wrote the book "Secrets of Methamphetamine Manufacturer" while serving time in prison on meth charges.

Walt cooks almost 400 gallons of the methylamine before deciding to quit the business. He agrees to pay another drug dealer a 35% cut of his sales in return for handling the distribution.

That would net Walt between $78 million to $96 million in profit, or enough to fill those seven 55-gallon drums with cash. To top of page

Tuesday, November 19, 2013

Tesla shares rebound despite fire probe

Tesla Motors stock spiked shortly after trading opened, jumping as high as $129.00 a share after dipping to $115.60 in pre-market trading.

The stock had tumbled between sessions as investors reacted to federal safety officials opening an official preliminary investigation into fires in Tesla's luxury electric cars.

Investors quickly decided it was an overreaction and began bidding up the price, after an initial dip at the open. Shares were trading up 5% to $127.60 at midday.

FEDERAL PROBE: Feds open preliminary Tesla investigation

Tesla CEO and founder Elon Musk says coverage of several recent high-profile fires in the Model S has unfairly tarred Tesla.

In a post on the company's blog, he wrote, "Since the Model S went into production mid last year, there have been over 400 deaths and 1,200 serious injuries in the United States alone due to gasoline car fires, compared to zero deaths and zero injuries due to Tesla fires anywhere in the world."

Drivers of the three Model S Teslas, which caught fire after hitting road debris, were unhurt, and praised the cars for helping them escape injury.

Karl Brauer, senior analyst at Kelley Blue Book auto researcher, says: "While only three Tesla fires have occurred, that's three more than I'm aware of for the Nissan Leaf, which has sold in greater numbers while being on the market longer.

"Is there an inherent design flaw in the Tesla's battery pack that makes it more prone to fires compared to other electric cars? That's what NHTSA will be determining."

The National Highway Traffic Safety Administration's preliminary investigation is a first step to see if there is an obvious fault, or something that bears further investigation in what'! s called an engineering analysis.

Preliminary investigations seldom lead to mandatory recalls, though they sometimes unearth obvious flaws that an automaker will correct promptly.

Monday, November 18, 2013

Burger King's New "Low Fat" Satisfries May Change Fast-Food Industry

Burger King Worldwide Inc. (NYSE: BKW) has a new product it calls Satisfries. The french fries have 40% less fat than the fast-food chain’s current product and 30% fewer calories. Of course, they also have “big taste.” The move could transform a portion of the fast-food industry that has been under pressure for years to make its products more healthy.

Burger Kind has few advantages over its much larger rival McDonald’s Corp. (NYSE: MCD), which has almost 13,000 locations in the United States. Burger King has just over 7,000. Wendy’s Co. (NYSE: WEN) is gaining with almost 6,000 stores. Burger King’s sales last year were less than $2 billion, in contrast to McDonald’s sales of $27.5 billion.

Size is only one thing that matters in the fast-food business. Menu is another. McDonald’s had a problem when its sales slowed almost a decade ago and it faced a drop in same-store sales. It launched a full breakfast menu with designer coffees like lattes to increase revenue and flank Starbucks Corp. (NASDAQ: SBUX). For the most part, the decision turned out well.

McDonald’s has been the target of health officials and the medical community because of a menu that is filled with food and drinks high in calories, fat and sugar. The company only irritated the groups when it launched its "The Annihilator" in early summer. The sandwich weighed seven pounds.

Fast-food companies have not done much to counter the claims of health experts. McDonald’s and its competitors likely reason that as long as the public streams through their doors, the opinions of those who want healthier menus do not matter.

Burger King’s decision to launch its Satisfries may not be to satisfy health officials. The company could simply believe that some portion of American consumers actually worry about their cholesterol and arteries. If Satisfries sales begin to rise quickly, Burger King will be ahead of the balance of the industry in terms of creating a lower-fat product with significant appeal.

Burger King may not be the largest fast-food company in America. However, it may have hit upon a product that will help it to get bigger.

Sunday, November 17, 2013

TV Consolidation Will Only Accelerate, Moody's Says

NEW YORK (TheStreet) -- Gannett (GCI), the newspaper publisher shifting its emphasis to television, appears poised to eventually acquire Belo Corp (BLC), the Dallas-based TV-station owner in a deal worth $2.2 billion, even if a few more pennies per share are needed to placate some stockholders.

But looking beyond this deal, local TV-station ownership is headed for further consolidation, says Moody's Investors Service media company analyst Carl Salas. Large and medium-sized television-owner groups, which went on an aggressive buying spree this past summer, are likely to be acquired by even larger entities as the industry's holdings become further concentrated.

That means that TV-station owners such as LIN Media (TVL), Nexstar Broadcasting Group (NXST) and Media General (MEG) could be acquired by media corporations such as Tribune (TRBAA), Gannett (GCI) and Sinclair Broadcast Group (SBGI), Salas said.

Nexstar made itself even more attractive to a larger buyer on Monday announcing the acquisition of five TV stations including two ABC and one CBS (CBS) affiliate in the politically-active state of Iowa at a cost of $103.25 million.

"We've gotten to the point where the M&A activity has really accelerated," Salas said in a phone interview. "As we get to the next stage of consolidation, some of the companies we've looked at as buyers in the past, will now be acquired."

Belo was jumping 1% to $14.04 on Tuesday, trading at a 29-cent premium to Gannett's offer price of $13.75, an indication that pressure may be growing on the publisher of USAToday to increase its offer. Belo shares have reached as high as $14.51 since the deal was announced on June 13.

Belo didn't hold an auction for the company, a debatable decision acknowledged by CEO Dunia Shive on a June investor conference call. The move invited criticism that the TV-station owner could have fetched a higher sale price by publicizing its availability. Nonetheless, Belo's board may not need Gannett to raise its bid now that Institutional Shareholder Services and Glass Lewis & Co., independent proxy groups, gave the deal their blessing.

Belo shareholders, heartened by a 30% gain in the shares since the Gannett offer was made public, may be loathe to risk trying to extract more from the deal. If either company opts out, they would have to endure a 3.5% break-up fee.

Belo already has 42.5% of the company's voting power committed to backing the sale, but two-thirds of all shares outstanding must vote in favor of the deal as those votes not cast will count as being opposed. A vote is scheduled for Sept. 25. <story_page_break>

The past five months have been a busy time for the industry. In June, Media General (MEG) merged with New Young Broadcasting Holding Co, in an $860 million deal backed by Warren Buffett and Mario Gabelli, creating a company owning 30-network affiliated stations reaching about 16.5 million U.S. TV households.

In July, Tribune (TRBAA), the Chicago-based media company that came out of a painful bankruptcy at the end of 2012, announced plans to acquire privately held Local TV Holdings for $2.725 billion in cash, creating a company owning 42 local TV stations covering 39% of U.S. TV households.

And in late-July, Sinclair Broadcast Group (SBGI), the largest single U.S. owner of TV stations, paid $985 for seven ABC-affiliated stations owned by the Allbritton family along with a 24-hour Washington D.C.-based cable channel. Sinclair owns 149 network-affiliated TV stations for a coverage of 38%, according to its Web site.

The engine behind all this consolidation is the increasingly strong hand that television station owners wield in negotiations with cable-TV and satellite operators. The recent victory of CBS over Time Warner Cable (TWC) only served to highlight where the power lies as cable operators, also including DirecTV (DTV)and Comcast (CMCCA), bargain from increasingly weaker positions due to declining numbers of pay-TV subscribers.

For station owners, acquisitions provide the scale to better manage expenses and, more importantly, afford them greater leverage in negotiating re-transmission fees from pay-TV operators and syndicated programming from networks, Salas said. Tribune and Gannett, historically newspaper publishers, have made clear their intention to grow the television side of their companies even as faster growth might be found in cable-TV networks.

"The local TV business is a mature industry, so to continue growing, scale is essential," he said. "And with each of these larger companies looking to get bigger, they're looking to make further acquisitions and increase thier scale even more."

Consolidation, therefore, is anything but complete. Salas says investors can expect more deals in the not-too-distant future.

Gannett was jumping 1.1% to $25.79, extending its 2013 advance to 43%, well above the benchmark S&P 500 which has gained 19% this year.

Written by Leon Lazaroff in New York

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>News stories and columns by Leon Lazaroff.

Friday, November 15, 2013

SEC, FINRA Enforcement: Firm Slapped for Ignoring Red Flags

Among recent enforcement actions by the SEC were sanctions by the SEC imposed on an audit firm and four accountants for failed audits; the findings by an administrative law judge that three former brokers were guilty of churning and their supervisor at the time of failing to supervise them.

FINRA took action on a firm’s misuse of escrow funds and fines a firm over failure to respond to red flags.

FINRA Fines Firm for Ignoring Red Flags

FINRA censured CFD Investments Inc., of Kokomo, Ind., and fined it $100,000 for failing to respond to red flags relating to a former registered representative. Had it responded and investigated the situation, it could have discovered that the representative had converted a trust’s assets.

The firm was already aware that the representative was serving as both trustee and broker to the trust, a potential conflict of interest that allowed him to be the only one receiving statements — a perfect cover for any potential wrongdoing. He took advantage of the fact to hide his activities from the trust beneficiary and anyone else associated with the trust.

As soon as six months after purchase, the representative began to liquidate mutual funds held by the trust, and within about five years the accounts were essentially worthless — something the firm could have stopped, since it had access to the account activity. But it did nothing to investigate, despite numerous red flags, including the facts that the representative made very little money — in one year as little as $5,600 — from the firm during the time he was draining the trust, and that he also repeatedly violated firm procedures.

The firm neither admitted nor denied FINRA’s findings, but consented to the sanctions.

Audit Firm, Four Accountants Sanctioned by SEC

New York-based audit firm Sherb & Co. LLP, its founder, two other partners and an audit manager were sanctioned by the SEC for their roles in the failed audits of three China-based companies publicly traded in the U.S.

The SEC found in an investigation that the firm and its auditors, far from conducting audits in accordance with U.S. standards, were so far off the mark that one of the companies they audited, China Sky One Medical Inc., has been charged by the agency with financial fraud.

The flawed audits involved China Sky One Medical, China Education Alliance Inc. and Wowjoint Holdings Ltd. Those responsible for the audits were Steven Sherb, the audit firm’s founder; partners Christopher Valleau and Mark Mycio; and audit manager Steven Epstein. They four did not properly plan and execute the audits, nor did they get adequate documentation concerning sales, revenue or bank balances. In addition, they ignored red flags and failed to maintain complete audit work papers.

To settle the proceeding, the firm and the four auditors agreed to be barred from practicing as accountants on behalf of any publicly traded company or other entity regulated by the SEC; in addition, the firm agreed to pay a $75,000 penalty.

Brokers Churned, Supervisor Failed, Says Judge in SEC Case

Three former brokers from Atlanta-based brokerage firm J.P. Turner & Co., charged last year for churning, were found on Wednesday by an administrative law judge to have done so.

As reported by ThinkAdvisor, the SEC filed charges last year against the brokers, Ralph Calabro, Jason Konner and Dimitrios Koutsoubos, and their supervisor, Michael Bresner, as well as the firm’s president and the firm itself. The brokers were charged with churning the accounts of customers with conservative investment objectives, causing the customers to lose $2.7 million.

In his decision, the judge found that the three had indeed churned accounts, and ordered them to collectively pay disgorgement and prejudgment interest of more than $400,000 and penalties totaling $435,000.

In addition, the judge’s decision included finding that Bresner, who had been charged with compliance failures, had failed to supervise two of the brokers, Konner and Koutsoubos. At the time of the charges, Bresner was the firm’s head supervisor.

The firm and its president, William Mello, settled the charges against them last year without admitting or denying them. The firm paid $200,000 in disgorgement (J.P. Turner’s approximate share of the commissions and fees generated by the fraudulent churning) plus $16,051 in prejudgment interest and a $200,000 penalty, and agreed to hire an independent consultant to review the firm’s supervisory procedures in order to prevent future violations.

Mello was ordered to pay a $45,000 penalty, and in addition was suspended from association in a supervisory capacity with a broker, dealer, or investment advisor for five months. /* .premium-promo { border: 1px solid #ddd; padding: 10px; margin: 0 10px 10px 0; width: 200px; float: left; } .premium-promo li, .premium-promo ul { list-style-type: none; margin: 0; padding: 0; } .premium-promo li { margin: 0 0 10px; padding: 0 0 10px; border-bottom: 1px dotted #ddd; } .premium-promo h3 { text-transform: uppercase; font-size: 11px; } .premium-promo h4 { font-size: 16px; } .premium-promo a { text-decoration: none !important; } .premium-promo .btn { background: #0069a1; border-radius: 4px; display: inline-block; padding: 5px 10px; clear: both; color: #fff; font-weight: bold; } .premium-promo .btn:hover { background: #034c92; } */ FINRA Censures, Fines Firm and Principal for Misuse of Escrow Funds

Weybridge, Vt.-based Middlebury Securities LLC and its registered principal James Baldwin Robinson were censured and fined by FINRA after the agency found that the firm, acting through a registered representative, took $200,000 in escrowed customer funds given to the firm for investment in issuers’ offerings and used it instead to make payments to, or on behalf of another issuer, when this issuer had no authority to receive funds from the others under the terms of each of these offerings.

The registered representative raised approximately $5.09 million from investors through the sale of issuers’ offerings, lying or omitting material facts in connection with them. Investors never got any interest payments from the issures, and only a few were lucky enough even to get back their principal.

Robinson, meanwhile, was supposed to supervise the representative, and should have made sure he complied with applicable securities laws and the firm’s WSPs. Instead, he and the firm failed to review the rep’s selling activity and the way he handled customer funds via the escrow accounts, and disregarded red flags that should have alerted him to inappropriate actions. Because Robinson failed to keep an eye on the rep’s release of funds from those accounts, the rep was able to have access to the money and convert it on behalf of the other issuer.

Without admitting or denying the findings, the firm accepted a fine of $325,000 and Robinson $45,000; in addition, Robinson was suspended for a year and required to requalify as a general securities principal prior to the suspension being lifted.

 

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Check out SEC Enforcement: RBS Securities to Pay $150M for Misleading Investors  on ThinkAdvisor.

Tuesday, November 12, 2013

What Samsung Must Do to Threaten Apple’s Grip on the Tablet Market

To say that Apple Inc. (NASDAQ: AAPL) has a stranglehold on the tablet market is probably no more than to state the obvious. Of all devices running Apple’s iOS operating system, 28% are iPads. By contrast, just 12% of all Android devices using the operating system from Google Inc. (NASDAQ: GOOG) are tablets.

Tablets take an even smaller share of mobile devices made by Samsung Electronics. Just 9% of all Samsung Android devices are tablets while 91% are smartphones.

Now smartphones still dominate in global markets and Android-based smartphones made by Samsung own a 59% share of the market according to research firm Flurry. Samsung tablets hold a 42% share of global tablet in Flurry’s sample of more than 45,000 Android devices.

Flurry notes that the behavior of owners of Samsung’s smartphones and tablets more closely mirrors that of Apple device owners than it does that of other Android device users. Why then hasn’t Samsung penetrated the tablet market to a greater degree?

The short response is that the Korean company has been focused on getting to an equal footing in its hardware development and has let the ecosystem surrounding its tablets drift. It's not an uncommon error. Everyone looks at Apple's snazzy hardware and first-time buyers leap after it. But they stay because the ecosystem surrounding the hardware offers them everything they need.

Samsung has the software ecosystem attached to Android available, but the company's undifferentiated apps offerings don't give it a positive marketing message in the tablet space. It is forced to compete on hardware innovation and that's why we see smaller tablets and phablets and watches, among other hardware.

Samsung is stuck with a difficult choice. Either go after smartphone sales in developing markets where price is very likely to drive sales or throw more resources at selling tablets and other higher end devices in developed markets like the U.S. Or attack both markets at once.

The stakes are high and going after both markets will be costly. But, as Flurry notes, if Samsung could succeed at both markets, the Korean company becomes a bigger threat to Apple than does Google.

Flurry-Android-August2013Source: Courtesy Flurry

Monday, November 11, 2013

What Child Care Costs Mean for You and Your Family

Children eating at the Day care centerAlamy Politics aside, Hillary Clinton was right: For most of human history, it usually took a village (or a tribe) of people to raise a child. Humans are social creatures: Though moms and -- to a lesser extent -- dads shouldered the major tasks of child-rearing, the support of the community played a huge role. Meals were cooked, kids were looked after, and social groups helped ensure the safe upbringing of the young. Today, that same societal structure isn't anywhere near as prevalent. In its place are long waiting lists and sky-high costs associated with putting a child in day care. How expensive has this gotten? If you lived in Washington, D.C., in 2011, putting your infant in a child care center would have cost $388 per week -- or more than $20,000 for a full year. Of course, I'm cherry-picking one of the most expensive locales, but it highlights a nationwide trend. In fact, in every region of the country except for the West, a family with two children in child care spent more for their kids to be looked after than they did on all housing costs combined. If you're expecting, or already have children, here are some key trends to keep in mind when deciding what to do when it comes to looking after your kids. Location, Location, Location This is the mantra of just about every real estate agent, but the same could be said of child care providers. For instance, full-time child care for an infant in Mississippi averaged $4,600 per year in 2011, but was $15,000 in Massachusetts. But the difference in absolute dollars doesn't mean much when you consider that the average salary in Massachusetts is higher than what it is in Mississippi. Instead, here's a look at the five least and most expensive states to have an infant in center-based care, as a percentage of median family income. Even within states, however, there are big differences. And no variable seems to be more important than -- you guessed it -- location. But this time, instead of talking about different states, we're referring to the difference between living in an urban or suburban community (defined as near a city center of at least 50,000) and a rural one. The most extreme example would be in Oregon, where the cost to put your infant in a child care center in an urban area is more than as expensive as it is in a rural area. But Oregon isn't alone: How Much More Expensive Is Urban Care vs. Rural Care? Is It a Better Option to Quit Your Job and Stay at Home? When confronted with such costs -- and endless waiting lists -- many parents are faced with the difficult decision of whether to continue working or to take a few years off to care for their children themselves. Of course, finances alone aren't the only consideration; for many people, their work is an intrinsically rewarding experience that goes beyond just earning a paycheck. But because one's approach to their work varies from individual to individual, let's just focus on the dollars and cents of such a decision. One very important matter to be aware of is a federal tax credit available to families who have to pay for child care. The credit is good for up to 35 percent of your child care bill with a limit of $3,000 for one child and $6,000 for two or more children. Let's take the most average state from our data set -- Iowa -- and see when it makes more financial sense to stay at home.

Sunday, November 10, 2013

This Company Won't Stop Growing

Chipotle Mexican Grill (NYSE: CMG  ) has made its investors very happy over the past year, with the stock appreciating 109%. Even if you were late to the party and you invested one month ago, you enjoyed a 25% return. In a non-raging bull market, that would be an excellent return for a year. The question now is whether or not Chipotle can keep its runaway train churning. 

Understanding Chipotle
Chipotle has been successful for two primary reasons:

It uses the highest quality ingredients it can find. This drives many consumers to its locations.  It offers a unique fine-dining approach to fast food. Unique concepts tend to drive growth, as consumers are always looking for something new and exciting. 

Whatever the case may be, Chipotle has been on a tear over the past several years. This doesn't just pertain to the stock, but the underlying business as well.

Recent results
In the third quarter, revenue jumped 18% to $826.9 million with comps improving 6.2%. Comps are the most important number since they don't include new restaurant sales, which can skew growth numbers. The impressive 6.2% comps improvement proves that consumers are returning to Chipotle Mexican Grill on a regular basis. Chipotle also impressed on the bottom line with diluted earnings per share skyrocketing 17.2% to $2.66.

If you look at the bigger picture, Chipotle still delivered strong numbers. For the first nine months of the year, revenue climbed 16.7% to $2.37 billion with comps increasing 4.3% and diluted EPS improving 16.6% to $7.93. 

For the fiscal year, Chipotle expects comps to be in the mid-single digits. For fiscal year 2014, comps are expected to be in the low single digits. 

By the end of this year, Chipotle will have opened 165 to 180 new restaurants. This is a bullish sign. As many restaurant companies reduce their store count or at least plan on slowing their new store growth, Chipotle Mexican Grill is still pushing full steam ahead. This indicates that the company is highly confident in its ability to remain profitable while still growing the top line. Chipotle doesn't plan on slowing down in 2014, when it plans to open 180 to 195 new restaurants. 

One potential negative is that menu prices will likely increase in 2014 due to cost inflation and higher food costs. Consumers are already paying a premium for higher-quality food. If prices increase, this could impact demand, but that isn't likely. Most consumers who fall in love with a brand aren't going to stop eating at that destination due to slight price increase. Some of them won't even notice it. 

Chipotle Mexican Grill vs. Taco Bell
Goldman Sachs did a study on these two competitors back in September 2012. This is somewhat old news, but the point here is that momentum is very difficult to contain. After this study showed that Taco Bell's brand equity score moved higher to 64.8 from 62.1 while Chipotle Mexican Grill's brand equity score moved lower to 65.8 from 70.4, many people believed that Taco Bell's parent company Yum! Brands (NYSE: YUM  ) would outperform Chipotle going forward. Let's take a look at how that turned out:

CMG Chart

CMG data by YCharts.

On the surface, this analysis made some sense. Taco Bell's Cantina Bell Menu and Doritos Locos Tacos were driving more traffic. Ironically, diversification worked against Yum! Brands. When you invest in Yum! Brands, you're also investing in Pizza Hut, Kentucky Fried Chicken, and the performance of those brands in India and China. The avian flu and the questioning of the quality of chicken used at Kentucky Fried Chicken in China drove the stock down. In the long run, this might present a buying opportunity. However, that's a story for another time. 

Chipotle might be growing quickly, and Yum! Brands is well diversified, but they both must compete against the most popular quick-service restaurant in the world, McDonald's (NYSE: MCD  ) . Let's see how Chipotle and Yum! Brands stack up against McDonald's on the top line:  (NYSE: MCD  )

CMG Revenue (TTM) Chart

CMG Revenue (TTM) data by YCharts.

Chipotle is the fastest-growing company of the three, which should be expected. What might surprise you is that it's also the top performer on the bottom line over the past year:

CMG EPS Diluted (TTM) Chart

CMG EPS Diluted (TTM) data by YCharts.

With all these positives for Chipotle, it might seem like a no-brainer investment. There's only one factor that should keep optimism in check -- it's trading at 53 times earnings. If you're looking for growth and you're comfortable with risk, then the valuation isn't a concern. If you're looking for more safety in the restaurant space, then consider some key metrics below:

Company 

Trailing P/E

Net Margin

Dividend Yield

Debt-to-Equity Ratio

Chipotle Mexican Grill

53

10.07%

N/A

0.00

Yum! Brands

28

8.48%

2.20%

1.27

McDonald's

17

19.97%

3.40%

0.88

Source: Company financial statements.

Top 10 Stocks To Watch For 2014

Not only is McDonald's the most appealing on a valuation basis, but it's the best of the three at turning revenue into profit, and it yields a generous 3.40%. While it's not growing as fast as Chipotle, it's still growing despite its age.

The bottom line
Chipotle is still growing at a rapid rate. If you're only paying attention to investing in a strong underlying company, then disregard valuation and take a stake for the long haul. You can always add on dips if you're wise enough to invest incrementally. If you're looking for more safety and ultra-safe dividend payments, take a look at McDonald's. 

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Saturday, November 9, 2013

VW Headlights May Burn Out

VW has enough problems in the U.S. It can barely give it cars away with “0% down, 0%” at signing. Research from firms which include J.D. Power and Consumer Reports do not tend to favor its models. Now, VW apparently has one more problem. Headlights on some of its cars may be apt to burn out, potentially leaving drivers on long dark roads, without illumination.

The NHTSA “SafeCar.gov” site gives specifics of the problems that drivers of VW cars have reported:

ODI has received 26 complaints alleging a partial or complete loss of the vehicle’s exterior lights. The reports suggest the problem worsens over time with additional exterior lighting malfunctioning as the problem progresses. Most of the complaints report finding an overheated and melted fuse in the under-hood fuse box. The overheated 30-amp fuse (number F16 or SB16) protects, among other things, several exterior lighting circuits.

Even if the problems turns out to be limited, it is the kind of public relations nightmare VW cannot afford. There have been several other large recalls around the industry in the last week, and, of course, another Tesla (NASDAQ: TSLA) car fire. But, Tesla’s cult like following and effusive praise of its cars by reviewers will likely allow it to get beyond the problem–if it does not happen again.

Recalls are routine in the car industry. Honda (NYSE: HMC) recently recalled 344,ooo Odyssey minivans for brake problems recently. Toyota (NYSE: TM) recalled about 870,000 Camrys, Venzas, and Avalons for airbag defects just a few days ago.

But, even in an industry in which there seems to be a recall a week, headlight which burn out are likely to put off the public more than most. The dark is frightening enough for most people. Driving 40 miles per hour in the dark is unimaginable.

Top 5 Small Cap Companies To Watch For 2014

VW, which needs the U.S. market to help its global ambitions to sell as many cars as GM (NYSE: GM) and Toyota do, has had one more setback in America, and it is a big one.

 

 

Friday, November 8, 2013

3 Stocks Spiking on Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Stocks Ready to Break Out This Month

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Stocks Set to Soar on Bullish Earnings

With that in mind, let's take a look at several stocks rising on unusual volume today.

Dealertrack Technologies

Dealertrack Technologies (TRAK) operates as an online credit application network in U.S. and Canada. This stock closed up 11.3% at $41.52 in Wednesday's trading session.

Wednesday's Volume: 962,000

Three-Month Average Volume: 185,932

Volume % Change: 417%

From a technical perspective, TRAK exploded higher here and gapped back above its 50-day moving average of $40.17 with monster upside volume. This move briefly pushed shares of TRAK into breakout territory, since it flirted with some near-term overhead resistance at $41.82. Shares of TRAK are now trending within range of another big breakout trade. That trade will hit if TRAK manages to take out Wednesday's high of $43.25 to its 52-week high at $43.52 with high volume.

Traders should now look for long-biased trades in TRAK as long as it's trending above Wednesday's low of $40.74 or above its 50-day at $40.17 and then once it sustains a move or close above those breakout levels with volume that hits near or above 185,932 shares. If that breakout hits soon, then TRAK will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $55.

SunEdison

SunEdison (SUNE) is a semiconductor and solar technology company. This stock closed up 8% to $11.22 in Wednesday's trading session.

Wednesday's Volume: 23.37 million

Three-Month Average Volume: 7.30 million

Volume % Change: 265%

From a technical perspective, SUNE spiked sharply higher here into new 52-week high territory with monster upside volume. This stock has been uptrending strong for the last two months and change, with shares moving higher from its low of $6.24 to its intraday high of $11.75. During that uptrend, shares of SUNE have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move up in the short-term if SUNE can print a new 52-week high.

Traders should now look for long-biased trades in SUNE as long as it's trending above Wednesday's low of $10.42 or above some more near-term support at $9.50 and then once it sustains a move or close above Wednesday's high of $11.75 with volume that hits near or above 7.30 million shares. If we get that move soon, then SUNE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are its next major overhead resistance levels at $15 to $16.

ING U.S.

ING U.S. (VOYA) offers a range of retirement, insurance and investment management products and services to its individual and corporate clients. Its products are tailored to meet the unique needs of its customers. This stock closed up 8.4% at $33.59 in Wednesday's trading session.

Wednesday's Volume: 3.30 million

Three-Month Average Volume: 1.04 million

Volume % Change: 238%

From a technical perspective, VOYA soared higher here and broke out above some key near-term overhead resistance levels at $31.51 to $32.69 with strong upside volume. This move pushed shares of VOYA into new all-time high territory, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if VOYA can tag new all-time highs soon.

Traders should now look for long-biased trades in VOYA as long as it's trending above Wednesday's low of $32 or above $31 and then once it sustains a move or close above Wednesday's high of $33.84 with volume that this near or above 1.04 million shares. If we get that move soon, then VOYA will set up to enter new all-time-high territory above, which is bullish technical price action. Some possible upside targets off that move are $40 to $45.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>5 Stocks Under $10 Spiking Higher



>>5 Dividend Boosters That Could Really Pay Off



>>Buy These 5 REITs to Cash In This Year

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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


Wednesday, November 6, 2013

Tesla Motors: Heavy Trading Comes on Down Days

Tesla Motors’ (TSLA) stock got hammered today after the upstart automaker released earnings–and the plunge came on heavy volume. Some 31 million shares of Tesla changed hands, the third most ever.

Miller Tabak’s Andrew Wilkinson compares today’s onslaught to previous episodes of high-volume selling in Tesla:

Record volume was set at 37 million shares on May 14 as the share price closed at $83.24 and lower on the day by 3.9%. The swell in morning volume looked healthy as the stock surged by 5% before settling lower.

On July 16 shares fell by around $20.00 following the opening bell before settling lower by 15% at $109.15. Volume that day was quite steady throughout the session.

The November 6 session looks a little different with heaviest volume at the outset dwindling notably throughout the day. However, that was insufficient to stop a late day rebound dead in its tracks for the shares to close 14.5% lower and close to session lows.

I guess Tesla was a short after all.

Tuesday, November 5, 2013

Best High Tech Stocks To Invest In Right Now

Things never get dull for the country's lone satellite-radio provider. Shares of Sirius XM Radio (NASDAQ: SIRI  ) moved sharply lower on the week, shedding 5.5% to hit $3.27. The media darling's drop was far worse than the more modest declines for the Dow and Nasdaq.

Sirius XM slipped after Apple (NASDAQ: AAPL  ) unveiled a streaming service and deeper iOS integration in cars. Higher mortgage rates may also be problematic for Sirius XM. Meanwhile, Pandora (NYSE: P  ) made a surprising move that could lower its streaming royalties. But at the same time, the number of shares of Sirius XM sold short did decline slightly in the latest bimonthly report.

There was more going on this week beyond the share-price gyrations, though. Let's take a closer look.

Apple turns up the Radio
There has been iRadio chatter for months, and reports that Apple had struck deals with the final two major labels last week made it a lock for the tech giant to announce its new platform during this week's WWDC.

Best High Tech Stocks To Invest In Right Now: Sedex Mining Corp. (SDN.V)

Sedex Mining Corp., a resource exploration stage company, engages in the acquisition, exploration, and development of mineral properties. The company explores for gold, copper, zinc, lead, kimberlite, nickel, platinum, palladium, and chromite. It focuses in the properties located in the Timmins area, as well as the Cranbrook area in Canada. The company was founded in 1980 and is headquartered in Vancouver, Canada.

Best High Tech Stocks To Invest In Right Now: NewStar Financial Inc.(NEWS)

NewStar Financial, Inc. operates as a commercial finance company in the United States. It focuses on meeting the financing needs of companies and private investors in the middle market. The company originates, structures, and underwrites senior and secured cash flow loans, as well as second lien, subordinated debt, and equity or other equity-linked products; and senior debt financing options, including revolving credit facilities, term loans, and other debt products secured by various business assets. It also offers first mortgage debt and asset-based debt primarily to finance the acquisition of commercial real estate properties. In addition, the company?s commercial real estate loans provide capital for various purposes comprising acquisition, lease-up, repositioning and build-out, and refinancing and recapitalization. Further, it offers senior and secured asset-based loans that provide capital for purposes, such as working capital, acquisition, dividend recapitalization s, refinancing and restructuring, corporate growth, and management buyouts. Additionally, the company provides various direct finance leases for equipment types, including manufacturing, technology, healthcare, and telecom equipment. It serves various companies operating in healthcare, manufacturing and industrial, financial services, energy/chemical services, printing/publishing, consumer, retail, restaurants, telecommunications, education, auto/transportation, marketing, wholesale distribution, and business and technology services industries. NewStar Financial, Inc. was founded in 2004 and is headquartered in Boston, Massachusetts.

Top Growth Companies To Watch In Right Now: West Coast Bancorp(WCBO)

West Coast Bancorp operates as the holding company for West Coast Bank that provides various banking and financial services in western Oregon and southwestern Washington. The company offers demand deposits, checking and savings accounts, NOW and money market accounts, interest bearing demand deposits, and time deposits. It also provides general commercial loans; revolving lines of credit; real estate loans and lines to support construction; owner occupied and investor financing; small business administration loans; and consumer loans. In addition, the company offers business credit cards, merchant service options, and equipment leasing, as well as check cards, personal lines of credit, and various first and second lien residential mortgage products. Further, it provides fiduciary, agency, trust, and related services; and life insurance products to individuals, as well as to profit and not for-profit businesses and institutions. Additionally, the company offers Internet-bas ed cash management services, remote deposit services, investment services, and treasury management online banking services. As of October 26, 2011, it operated in 65 locations in Oregon and Washington. The company was founded in 1925 and is headquartered in Lake Oswego, Oregon.

Best High Tech Stocks To Invest In Right Now: Mansfield Minerals Inc. (MDR.V)

Mansfield Minerals Inc., a junior mining company, engages in the acquisition and exploration of mineral property interests primarily in Argentina. It holds a 100% interest in the Lindero project that includes the Lindero heap leach oxide gold deposit and the Arizaro porphyry gold-copper prospect covering an area of 35 square kilometers in Salta Province, northwestern Argentina. The company was founded in 1975 and is headquartered in Vancouver, Canada.

Best High Tech Stocks To Invest In Right Now: Clear Channel Outdoor Holdings Inc (CCO)

Clear Channel Outdoor Holdings, Inc., incorporated in August 1995, provides clients with advertising opportunities through billboards, street furniture displays, transit displays and other out-of-home advertising displays, such as wallscapes, spectaculars, neons and mall displays, which it owns or operates in global markets. As of December 31, 2011, the Company owned or operated more than 750,000 advertising displays globally. During the year ended December 31, 2011, the Company operated in two business segments: Americas outdoor advertising (Americas) and International outdoor advertising (International), which represented 44% and 56% of its revenue, respectively.

Americas Outdoor Advertising

The Company is an outdoor advertising company in the Americas, which includes the United States, Canada and Latin America. As of December 31, 2011, the Company owned or operated approximately 125,000 display structures in its Americas segment with operations in 48 markets in the United States. Its Americas assets consist of billboards, street furniture and transit displays, airport displays, mall displays, and wallscapes and other spectaculars, which it owns or operates under lease management agreements.

Americas revenue is derived from the sale of advertising copy placed on its digital displays and its traditional displays. Its display inventory consists of billboards, street furniture displays and transit displays. During 2011, billboards consisted approximately 66% of its display revenues. Its Americas segment generates revenues from local, regional and national sales. Its billboard inventory includes bulletins and posters. Digital bulletins display static messages, which resemble standard printed bulletins when viewed, but also allow advertisers to change messages throughout the course of a day. Our electronic displays are linked through centralized computer systems to instantaneously and simultaneously change advertising copy as needed.

The Company�� ! street furniture displays include advertising surfaces on bus shelters, information kiosks, freestanding units and other public structures, are available in both traditional and digital formats, and are located in metropolitan areas and along commuting routes. The Company owns the street furniture structures and are responsible for their construction and maintenance. Its transit displays are advertising surfaces on various types of vehicles or within transit systems, including on the interior and exterior sides of buses, trains, trams, and within the common areas of rail stations and airports, and are available in both traditional and digital formats. The balance of its display inventory consists of spectaculars, wallscapes and mall displays. Spectaculars are customized display structures, which often incorporate video, multidimensional lettering and figures, mechanical devices and moving parts and other embellishments to create special effects. Its spectaculars are located in Times Square in New York City, Dundas Square and the Gardiner Expressway in Toronto, Fashion Show Mall in Las Vegas, Miracle Mile Shops in Las Vegas and across from the Target Center in Minneapolis.

As of December 31, 2011, the Company owned or operated approximately 125,000 display structures in its Americas segment with operations in 48 markets in the United States. Its displays are located on owned land, leased land or land, for which it have acquired permanent easements. The Company owns the physical structures on which its clients��advertising copy is displayed.

The Company competes with CBS and Lamar Advertising Company.

International Outdoor Advertising

The Company�� International segment includes its operations in Asia, Australia and Europe. As of December 31, 2011, the Company owned or operated more than 630,000 displays across 30 countries. Its International assets consist of street furniture and transit displays, billboards, mall displays, Smartbike schemes, walls! capes and! other spectaculars, which it owns or operates under lease agreements.

International revenue is derived from the sale of traditional advertising copy placed on its display inventory and electronic displays which are part of its network of digital displays. Its International display inventory consists of street furniture displays, billboards, transit displays and other out-of-home advertising displays, such as neon displays. Its International segment generates revenues globally from local, regional and national sales. Its International street furniture displays, available in traditional and digital formats, include bus shelters, freestanding units, various types of kiosks, benches and other public structures. Its International street furniture is sold to clients as network packages of multiple street furniture displays, with contract terms ranging from one to two weeks. Client contracts are also available with terms of up to one year.

The Company�� International billboards are sold to clients as network packages with contract terms ranging from one to two weeks. Long-term client contracts are also available and typically have terms of up to one year. It leases its billboard sites from private landowners. Billboards include posters and its neon displays, and are available in traditional and digital formats. Defi Group SAS, its International neon subsidiary, is a global provider of neon signs with approximately 296 displays in 16 countries globally.

The Company�� client contracts for transit displays, either traditional or digital, have terms ranging from one week to one year, or longer. The balance of its revenue from its International segment consists of advertising revenue from mall displays, other small displays and non-advertising revenue from sales of street furniture equipment, cleaning and maintenance services and production revenue. Its contracts with mall operators have terms ranging from 5 to 10 years and client contracts for mall displays generally ha! ve terms ! ranging from one to two weeks. Its International inventory includes other small displays, which are counted as separate displays. It also has a Smartbike bicycle rental program, which provides bicycles for rent to the general public in several municipalities. In exchange for providing the bike rental program, it derives revenue from advertising rights to the bikes, bike stations, additional street furniture displays, or fees from the local municipalities. It sells equipment or provides cleaning and maintenance services as part of a billboard or street furniture contract with a municipality. As of December 31, 2011, the Company owned or operated more than 630,000 displays in its International segment, with operations across 30 countries. Its International display count includes display faces, which may include multiple faces on a single structure.

The Company competes with JCDecaux and CBS.

Advisors' Opinion:
  • [By Seth Jayson]

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

Best High Tech Stocks To Invest In Right Now: RCM Technologies Inc.(RCMT)

RCM Technologies, Inc., together with its subsidiaries, engages in the design, development, and delivery of business and technology solutions for commercial and government sectors in North America. It operates through three segments: Information Technology (IT), Engineering, and Commercial Services. The IT segment provides enterprise business solutions, application services, infrastructure solutions, competitive advantage and productivity solutions, and life sciences solutions. The Engineering segment offers engineering and design, engineering analysis, engineer-procure-construct, configuration management, hardware/software validation and verification, quality assurance, technical writing and publications, manufacturing process planning and improvement, reliability centered maintenance, component and equipment testing, and risk management engineering services. The Commercial Services segment provides long-term and short-term staffing, executive search, and placement servic es in various fields, including rehabilitation, nursing, managed care, allied health care, health care management, and medical office support, as well as offers in-patient, outpatient, sub-acute and acute care, multilingual speech pathology, rehabilitation, geriatric, pediatric, and adult day care services to hospitals, long-term care facilities, schools, sports medicine facilities, and private practices. This segment also offers contract and temporary services, and permanent placement services for full-time and part-time personnel in various functional areas, including office, clerical, data entry, secretarial, light industrial, shipping, receiving, and general warehousing. The company offers its services to aerospace/defense, energy, financial services, life sciences, manufacturing and distribution, public sector, and technology industries. RCM Technologies, Inc. was founded in 1971 and is based in Pennsauken, New Jersey.

Advisors' Opinion:
  • [By CRWE]

    RCM Technologies, Inc. (Nasdaq:RCMT) reported that primarily due to unexpected and extended client procedural delays in awarding certain engagements under an existing contract with a major North American utility, the Company’s second quarter revenues and operating income will fall short of its expectations.