Saturday, November 30, 2013

5 Best Heal Care Stocks To Buy For 2014

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

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

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

5 Best Heal Care Stocks To Buy For 2014: CAPITAL DRILLING LTD ORD USD0.0001(CAPD.L)

Capital Drilling Limited provides exploration, development, grade control, and blast hole drilling services to mineral exploration and mining companies. The company operates a fleet of 77 drilling rigs. It offers various drilling services, including surface diamond core; high air capacity reverse circulation, such as deep-hole RC for mineral exploration and mining; grade control; heli-portable diamond; deep directional core orientation; air core drilling using medium to light weight rigs; geotechnical; and coal and coal bed methane, as well as water bores and mine dewatering services. It also provides various products and services, such as assorted supplies, conventional hammers and bits, diamond coring products, down hole survey, drilling fluids, geological and survey equipment, mobile accommodation units, reverse circulation drilling equipment, ridgid tools and petol tongs, safety equipment, top hammer drilling, and tricone rockbits. In addition, the company offers suppo rt services, such as safety, environmental, human resource, systems, and training management services. Further, it provides data and voice solutions to corporate and non-governmental organizations. The company has operations in Tanzania, Zambia, Egypt, the Democratic Republic of Congo, Pakistan, Armenia, Serbia, Papua New Guinea, Mozambique, Hungary, Eritrea, and Chile. Capital Drilling Limited was founded in 2004 and is headquartered in Singapore.

5 Best Heal Care Stocks To Buy For 2014: DAILY MAIL & GENERAL TRUST 'A'ORD NON VTG GBP0.125(DMGT.L)

Daily Mail and General Trust plc operates in the media and information business primarily in the United Kingdom, the rest of Europe, North America, and Australia. It offers various products and services for the quantification and management of catastrophe risk associated with perils, such as earthquakes, hurricanes, windstorms, and terrorist attacks; and business-to-business information to the property, financial, energy, geospatial, and educational recruitment markets. The company also produces business-to-business exhibitions and conferences for the energy, technology, digital marketing, gift, construction, and interior industries with events in North America, the Middle East, Europe, Asia, and Australia. It operates approximately 36 exhibitions and 2 conference businesses in 11 countries. In addition, Daily Mail and General Trust plc publishes approximately 70 magazines, newsletters, and journals, including Euromoney, Institutional Investor, and Metal Bulletin; conducts conferences, seminars, and training courses; and provides electronic information and data covering international finance, metals, and commodities markets. Further, the company operates newspaper companion digital sites; travel, jobs, motors, and property digital businesses; and mobile and television business, as well as provides printing services. Additionally, it publishes approximately 100 publications, including 17 paid-for daily titles, 2 free daily titles, 23 paid-for weeklies, 4 weekly classified titles, 17 monthly magazines, and 40 free weekly newspapers. The company was founded in 1896 and is headquartered in London, the United Kingdom.

Hot Low Price Stocks To Own Right Now: BKM Management Ltd(BKM.AX)

BKM Management Limited, through its subsidiaries, engages in the operation of modeling agencies in Australia. The company also operates health spa, bar, and entertainment complex in China, as well as engages in the oil trading business. BKM Management Limited was founded in 1997 and is based in Armadale, Australia.

5 Best Heal Care Stocks To Buy For 2014: Wipro Ltd (WIPRO)

Wipro Limited (Wipro) is a global information technology (IT), services company. Wipro provides a range of IT services, software solutions and research and development services in the areas of hardware and software design to companies worldwide. It uses its development centers located in India and worldwide, quality processes and global resource pool to provide IT solutions and deliver time-to-market and time-to-development advantages to its clients. It also provides business process outsourcing (BPO) services. The Company operate in three segments: IT Services business segment, IT Products business segment and Consumer Care and Lighting business segment. On June 10, 2011, it acquired the global oil and gas information technology practice of the Commercial Business Services Business Unit of Science Applications International Corporation Inc. along with 100% interest in SAIC Europe Limited and SAIC India Private Limited. In June 2013, the Company acquired a minority stake in Axeda Corp.

5 Best Heal Care Stocks To Buy For 2014: Usa Video Interactive Crp (US.V)

Oculus Visiontech Inc. engages in the design and marketing of digital watermarking, and streaming video and video-on-demand systems and services to business customers. It also offers source-to-destination digital media delivery solutions that allow live or recorded digitized and compressed video to be transmitted through Internet, intranet, satellite, or wireless connectivity. The company�s systems, services, and delivery solutions include digital watermark solutions and video content production, content encoding, media asset management, media and application hosting, multi-mode content distribution, transaction data capture and reporting, e-commerce, specialized engineering services, and Internet streaming hardware. Its products and services comprise MediaSentinel, a digital watermarking technology used to deter piracy of digital content; SmartMarks, which are invisible, unremovable, forensic digital watermarks imbedded in various video frames to protect digital video fr om piracy; StreamHQ, a collection of source-to-destination media delivery services; EncodeHQ, a service that digitizes and compresses analog-source video; hardware server and encoder system applications under the brand name of Hurricane Mediacaster; Zmail, a Web and media content delivery service to targeted audiences; and mediaClix, a service that delivers content similar to Zmail, originating from an existing Web presence. The company was formerly known as USA Video Interactive Corp. and changed its name to Oculus Visiontech Inc. in January 2012. Oculus Visiontech Inc. was founded in 1986 and is headquartered in Vancouver, Canada.

Thursday, November 28, 2013

Priceline's Gains Aren't Over

Even though this company's stocks are already trading at well-over $1,000 a share, Chris Umiastowski, of the Globe and Mail, still thinks it's poised to climb even higher.

Almost one year ago, I added the online travel giant Priceline.com, Inc. (PCLN) to my Strategy Lab portfolio. At the time, the stock had already been a star performer in the S&P 500 (SPX) for several years, and I bought my shares at about $627 (US) each.

I predicted the shares were likely to blow through $1,000. The surprise was how quickly they did just that. As a result, my investment in Priceline has returned more than 80% since December. With returns like this, shouldn't I be selling the stock?

Not a chance. Priceline is a classic example of what I look for in a long-term investment. Sure, the stock price has shot up. But the business continues to chug along like an accelerating locomotive, and I expect its growth to continue.

From the perspective of a long-term investor, nothing has really changed. The stock just isn't as absurdly undervalued as I felt that it was last year. There's plenty of fuel left in the tank, and I'm not about to disembark.

Trends take longer to play out than most investors realize, especially if they reflect a fundamental technological shift. As an early adopter, I had broadband Internet at home back in the late 1990s, when I was an engineer working for Nortel Networks. I've used a smartphone since before anyone called them that a decade ago. As amazing as these technologies are, and as much as they've changed our lives, we're still only at the early stages of what is possible.

Most people, for instance, still book their travel offline. Ten years from now the opposite will be true, and the online tools available to travelers will be light years ahead of what we have today.

The technology is already here. But it takes a lot longer to change travelers' deep-rooted habits.

Priceline is in a great position to benefit from that shift. It's the biggest player in online travel and offers services spanning everything from flights and hotels to car rentals. The only real question is whether the stock—now well north of $1,000 a share—is valued fairly. I think it is.

To be sure, the stock has made record highs since reporting its latest quarterly results earlier this month. But it's still not terribly expensive in comparison to its earnings and growth rates. If you have the patience to invest for many years, I think you'll be rewarded with market-beating returns.

A look at consensus estimates shows analysts think Priceline will earn about $50 next year. That means Priceline trades at about 22 times forward earnings—a level somewhat above the broad market, but a valuation that doesn't bother me at all, considering how quickly the company is expanding.

Look at the numbers: Gross profit increased by 42% year over year. Net income was up 44%. Total hotel night reservations were 36% higher. The company's flagship brand, Booking.com, now has a database of 355,000 properties to offer customers, up 45% year over year.

Best China Companies To Buy For 2014

Analysts have consistently underestimated the pace at which Priceline will grow.

It wouldn't surprise me to see the company double its earnings per share between 2014 and 2018—reaching that goal that would require less than 20% annualized growth, which is far below the rates it's achieved in recent years. With respectable growth, I don't expect the price-to-earnings multiple to compress much. So, I'm not expecting another 80% gain in the next year, but I am expecting somewhere in the vicinity of 20% per year for the next several years.

Yes, there will be volatility along the way. But that's part and parcel of being a growth investor.

If you think you can guess where stocks are going in the short-term, I wish you good luck. You'll trade actively, hope for the best and probably suffer sub-par performance. But if you're like me, and don't think you're smart enough to predict short-term moves, take the easier route.

All you have to do is buy good quality stocks that you can tuck away for years. Forget about the volatility and enjoy the higher returns you're likely to achieve. When the long-term investment story doesn't look as interesting any more, that's when it is time to consider selling.

Read more from the Globe and Mail here…

Wednesday, November 27, 2013

Apple (AAPL) Unveils Free OS at iPad Event, Microsoft (MSFT) Drops

NEW YORK (TheStreet) -- Though much of what Apple (AAPL) revealed at Tuesday's event was as expected, one surprise takeaway was the tech giant revealing that its updated operating system OS X Mavericks and productivity suite iWork will be available free of charge.

Along with its launch of the iPad Air and iPad Mini, the iPhone maker announced that the refreshed operating system will be available for download immediately through the App Store, free to Mac users with OS X Moutain Lion- or Snow Leopard-enabled hardware. For OS X Server (a multi-user business platform), there is a $19.99 upgrade charge.

Unlike rival Microsoft (MSFT), which sells Windows 8.1 and Pro for $120 and $200, respectively, at retail, Apple seems content with its strategy of giving the intangibles away for free to drive hardware sales. In response, Microsoft shares dropped 1.17%, with its biggest falls of the day coinciding with the Apple event.

Mavericks, modeled on the iOS 7 for the iPhone and iPad, introduces 200 new features, including iBooks (which syncs a user's books and reading activity across all iCloud devices) and Apple maps. It also improves the performance and battery life of the Mac. "We want every Mac user to experience the latest features, the most advanced technologies and the strongest security," said Craig Federighi, Apple's senior vice president of software engineering, in a statement. "We believe the best way to do this is to begin a new era of personal computing software where OS upgrades are free." Shares of the Cupertino-based company dipped 0.29% at market close, but have since gained 0.25% in after-hours trading. TheStreet Ratings team rates Apple Inc as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about its recommendation: "We rate Apple Inc (AAPL) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: AAPL's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 0.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. AAPL's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AAPL has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs. 41.67% is the gross profit margin for APPLE INC which we consider to be strong. Regardless of AAPL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AAPL's net profit margin of 19.53% compares favorably to the industry average. Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Computers & Peripherals industry and the overall market, APPLE INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500. APPLE INC's earnings per share declined by 19.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, APPLE INC increased its bottom line by earning $44.16 versus $27.67 in the prior year. For the next year, the market is expecting a contraction of 10.8% in earnings ($39.38 versus $44.16). You can view the full analysis from the report here: AAPL Ratings Report

Tuesday, November 26, 2013

Men’s Wearhouse offers to buy Jos. A. Bank

The suit wars are heating up on Wall Street. But which suit retailer fits?

The Men's Wearhouse offered to buy Jos. A. Bank Clothiers Tuesday, turning the tables on an apparel retailing rival that has been trying to take it over.

The Men's Wearhouse proposed to acquire Jos. A. Bank for $55 per share in cash, representing an implied enterprise value of approximately $1.2 billion.

The Men's Wearhouse said its takeover offer is a 32% premium over Jos. A. Bank's closing share price on Oct. 8, 2013, the day before Jos. A. Bank proposed to buy Men's Wearhouse.

Jos. A. Bank shares jumped 11% to $56.32 in pre-market trading Tuesday. Men's Wearhouse shares climbed 8% to $50.90.

"We are the right acquiror for this combination and that our experienced management team is best positioned to execute the integration of our companies and achieve the synergies that would result," said Bill Sechrest, lead director of the board of Men's Wearhouse.

A combination of the two companies would create the fourth largest U.S. men's apparel retailer, with more than 1,700 total stores and annual sales of more than $3.5 billion, Men's Wearhouse said.

The company forecast that the combination would create about $100 million to $150 million of annual synergies over three years through more efficient purchasing, customer service and marketing, and streamlining corporate functions. The deal will add to Men's Wearhouse's earnings in the first year following closing, it added.

Men's Wearhouse said it plans to pay for the deal with existing cash from its balance sheet and borrowed money.

Monday, November 25, 2013

Buy This, Sell That: American Community Vs. Real Goods Solar (ACYD, RSOL)

If you were lucky enough to be in an American Community (OTCMKTS:ACYD) position anytime before October 8th, then congratulations - you're up big. Now get out. Instead, use freed-up that capital to take on a position in Real Goods Solar, Inc. (NASDAQ:RSOL), which looks like it's at the beginning of a good-sized rally.

Admittedly, suggesting ACYD is due for a pullback or recommending RSOL as a long may feel a little uncomfortable. American Community shares have been one of the market's hottest stocks of late, rallying 350% in a little over a month, while Real Goods Solar shares have been suspiciously tepid of late, even though most of the solar industry's stocks have been getting some traction. The basic explanation is, nothing lasts forever.

Yes, at first glance ACYD is a big mover. Take a closer look at the chart though. Though it's been on the way up since mid-September, the volume has been waning the whole time. Indeed, the bullish volume has been almost non-existent the last couple of weeks, and has ground to a halt this week. American Community are still coasting higher, but a ceiling seems to have developed around $0.049, and the bears don't seem interested in giving up any ground beyond that line. That red flag is an omen that the tide is turning.

And Real Goods Solar, Inc. is a better choice? As a matter of fact, it is.

If the ticker RSOL rings a bell, it may be because it's been recommended as a budding buying opportunity (by yours truly) a few times since early September. The premise was always the same - the stock pushed off the 200-day moving average line (green) early last month, and continued to make higher highs and higher lows in the meantime, using shorter-term moving average lines as floors as they were crossed.

The clincher RSOL, however, came today with the move above a key ceiling at $3.05. You'll also see something that's even more important unfolding here... the buying volume is on the rise; it has been since early September. That volume inflow along with a willingness to carry this stock to new highs (finally) gets Real Goods Solar over a major hump.

Just bear in mind that both outlooks are short-term trading outlooks, and not long-term calls on either stock.

If you'd like to get more trading ideas and insights like this one, sign up for the free SmallCap Network daily e-newsletter. It's full of stock picks, market calls, and more.

Saturday, November 23, 2013

5 Best Canadian Stocks To Buy Right Now

Enbridge Energy Partners LP (EEP) is a midstream operator that generates a steady stream of what management describes as ��tility-like��revenue.

Spun out from Canadian energy giant Enbridge (ENB), the MLP is the largest transporter of crude oil into the US from western Canada. The firm also operates highest-capacity pipeline serving the Bakken Shale, a prolific crude-oil play in North Dakota.

The partnership owns and operates roughly 6,500 miles of liquids transportation and gathering pipelines, as well as 11,400 miles of natural-gas pipelines.

Attached to these pipelines are storage facilities that can hold up to 39.4 billion barrels of liquid hydrocarbons and extensive gas processing and treatment capacity.

5 Best Canadian Stocks To Buy Right Now: Enbridge Inc(ENB)

Enbridge Inc. engages in the transportation and distribution of crude oil and natural gas primarily in Canada and the United States. Its Liquids Pipelines segment operates common carrier and contract crude oil, natural gas liquids (NGLs), and refined products pipelines and terminals. The company?s Gas Distribution segment distributes natural gas to residential, commercial, and industrial customers primarily in central and eastern Ontario, northern New York State, Quebec, and New Brunswick. Enbridge?s Gas Pipelines, Processing and Energy Services segment invests in natural gas pipelines, processing and green energy projects, and commodity marketing businesses, as well as performs commodity storage, transport, and supply management services. Its Sponsored Investments segment transports crude oil and other liquid hydrocarbons through common carrier and feeder pipelines, as well as transports, gathers, processes, and markets natural gas and NGLs; operates a crude oil and liqui ds pipeline and gathering system; and owns a 50% interest in the Canadian portion of Alliance Pipeline and partial interests in various green energy investments. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.

Advisors' Opinion:
  • [By Dan Caplinger]

    Energy has also held the Canadian economy back, with challenges hampering the potential growth in the industry. Enbridge (NYSE: ENB  ) and TransCanada, for instance, both have huge opportunities to capitalize on prospective new pipelines, yet environmental concerns haven't allowed the companies to work as quickly as they might otherwise to build out energy-transportation infrastructure for hard-to-reach production areas.

  • [By Arjun Sreekumar]

    Consider the rupture of an Enbridge (NYSE: ENB  ) pipeline, which discharged roughly a million gallons of bituminous crude into Michigan's Kalamazoo River in June 2010. Though three years have passed, the cleanup effort still isn't over. Enbridge employees and state and federal environmental crews continue to test the river, where sheen and clumps of oil still linger. The company reported a 4% year-over-year decrease in its first-quarter net income, partially because of the escalation of cleanup costs related to the spill, which are now approaching a whopping $1 billion.

  • [By Tyler Crowe]

    One midstream company is wise to this idea and has plans to be the connection. Enbridge's (NYSE: ENB  ) Alberta Clipper and Southern Lights project currently delivers about 180,000 barrels per day of condensate from Chicago to Alberta. The company plans to expand that capacity to 275,000 bpd to accommodate the needs of Canadian oil sands and the abundant amount of condensate from places like the Utica.

  • [By Tyler Crowe]

    Today, many newly discovered unconventional sources are very light, sweet, and easy to refine. Since our Gulf Coast refineries are still geared toward heavy, sour crudes, we will continue to import that grade to use in these facilities. In fact, one type of crude oil that is strikingly similar to�Venezuelan�and Mexican crudes is Canadian oil sands. Canadian oil sands are in�desperate�need of refineries capable of treating this heavy mix, and Gulf of Mexico refineries are just the type of refinery these crudes need. This is the driving force for Canadian pipeline companies TransCanada (NYSE: TRP  ) and Enbridge (NYSE: ENB  ) expanding their takeaway capacity to the Gulf through the Keystone XL and the Trunkline conversion, respectively.

5 Best Canadian Stocks To Buy Right Now: Kinross Gold Corporation(KGC)

Kinross Gold Corporation, together with its subsidiaries, engages in mining and processing gold ores. It also involves in the exploration and acquisition of gold bearing properties. The company?s gold production and exploration activities are carried out principally in the Americas, Africa, and the Russian Federation. As of December 31, 2010, its proven and probable mineral reserves were 62.4 million ounces of gold, 90.9 million ounces of silver, and 1.4 billion pounds of copper. The company was founded in 1972 and is based in Toronto, Canada.

Advisors' Opinion:
  • [By Patricio Kehoe]

    Making smart investments in the gold industry is not an easy task. Firms suffer from different problems, such as high cash costs which leave them exposed to declining gold prices, and difficulties while executing expansion projects. Agnico Eagle Mines (AEM) and Kinross Gold (KGC) are two such gold miners, which not only face different challenges, but very different outlooks.

  • [By Rich Duprey]

    Of course, not all of Barrick's problems are of its own making. Other major miners, such as Vale� (NYSE: VALE  ) , Rio Tinto (NYSE: RIO  ) , and BHP Billiton, are selling mines or considering doing so to shore up finances and concentrate on core operations. And gold has been in a rut that's caused some of the best miners from�Yamana Gold (NYSE: AUY  ) to Kinross Gold (NYSE: KGC  ) to lose 25% or more of their value in the past month. A week ago, gold suffered its largest one-day drop in three decades.

Hot Value Companies To Own For 2014: Valeant Pharmaceuticals International Inc(VRX)

Valeant Pharmaceuticals International, Inc., a specialty pharmaceutical company, develops, manufactures, and markets pharmaceutical products in the areas of neurology, dermatology, and branded generics. It offers Wellbutrin XL to treat depressive disorders; Xenazine to treat chorea associated with Huntington?s disease; CeraVe to rebuild and repair skin barrier; and Kinerase, a cosmetic product. The company also provides Zovirax ointment to treat initial genital herpes; Xerese to treat recurrent herpes labialis; Elidel to treat atopic dermatitis; and Acanya and Atralin gels to treat acne vulgaris. In addition, it offers Cesamet to treat nausea and vomiting associated with cancer chemotherapy; Tiazac XC to treat hypertension and angina; Wellbutrin to treat depressive illness; Sublinox to treat insomnia; and Lodalis to treat hypercholesterolemia. Further, the company provides Cold-FX to strengthen immune system; Duromine/Metermine for weight loss; Difflam to treat sore throa ts; and Duro-Tuss and Rikodeine to treat dry and chesty cough, as well as various branded generics for treatments, including antibiotics, treatments for cardiovascular and neurological diseases, antifungal medications, and diabetic therapies. Additionally, it offers Bisocard to treat hypertension and angina pectoris; Flucinar, a corticosteroid ointment; and Sachol mouth ulcer gel; Bedoyecta to treat neurotic pain; M.V.I., a hospital dietary supplement for trauma and burns; Tandene to treat fever and headache; Melleril to treat anxiety and depression; and products for therapeutic classes, such as vitamin deficiency, antibacterials, and dermatology. It markets its products in the United States, Canada, Australia, New Zealand, Europe, Latin America, southeast Asia, and South Africa. The company was formerly known as Biovail Corporation and changed its name to Valeant Pharmaceuticals International, Inc. in September 2010. The company was founded in 1960 and is headquartered in M ississauga, Canada.

Advisors' Opinion:
  • [By CanadianValue]

    On the acquisition front, Valeant (VRX) was involved in several transactions including PharmaSwiss, Sanitas, Ortho Dermatologics, Dermik, and iNova. The PharmaSwiss and Sanitas acquisitions should increase Valeant�� European business to well over $600 million in revenues in 2012, which would put Europe at close to 20% of the total business. Ortho Dermatologics and Dermik will help Valeant become one of the leading dermatology companies in the world with over $1 billion in revenues. iNova increased Valeant�� presence in Australia and helped it establish footholds in South Africa and Southeast Asia. Management is optimistic that the new positions in Southeast Asia, South Africa and Russia represent future growth platforms for Valeant.

  • [By Dan Caplinger]

    Finally, outside the Dow, Valeant Pharmaceuticals (NYSE: VRX  ) has soared another 9%, adding to a 13% jump Friday after the company followed through on its rumored buyout of privately held Bausch & Lomb. The $8.7 billion deal will give Valeant a big competitive edge in the eye-care market, which looks increasingly promising as an aging population faces potential vision problems.

  • [By Ben Levisohn]

    While the Paladin deal expands potential growth areas for the company, Endo�� business development focus remains on the heavily fragmented US market, where the company believes it can create the most value by operating acquired assets more efficiently. Management sees a robust pipeline of potential future deals and does not necessarily view other companies that benefit from a low tax rate [(Actavis (ACT), Perrigo (PRGO), Valeant Pharmaceuticals International (VRX))] as direct competitors for the assets it is targeting. We believe business development is likely to accelerate post the Paladin deal and the re-domicile to Ireland, and view Endo as in the early stages of its consolidation strategy…And with greater than $2 billion in capacity to do deals, we expect business development to accelerate.

  • [By David Williamson]

    Though many excited traders had hoped to see the bidding war continue between Valeant Pharmaceuticals (NYSE: VRX  ) and Merz over Obagi Medical Products (NASDAQ: OMPI  ) and a subsequent run-up in the stock price of the smaller dermatological products maker, Merz has now walked away from the table, leaving the highly acquisitive Valeant the victor. In this video, Motley Fool health care analyst David Williamson gives us some background on these companies and tells us how Valeant plans to profit from the deal, and describes for investors why this is a win both for Obagi and for Valeant.

5 Best Canadian Stocks To Buy Right Now: Vanguard Natural Resources LLC(VNR)

Vanguard Natural Resources, LLC, through its subsidiaries, engages in the acquisition and development of oil and natural gas properties in the United States. Its properties are located in the southern portion of the Appalachian Basin, primarily in southeast Kentucky and northeast Tennessee; the Permian Basin, primarily in west Texas and southeastern New Mexico; and south Texas. As of December 31, 2010, the company had estimated proved reserves of 69.3 million barrels of oil equivalent, as well as working interests in 2,270 net productive wells. Vanguard Natural Resources, LLC was founded in 2006 and is based in Houston, Texas.

Advisors' Opinion:
  • [By Matt DiLallo]

    Vanguard Natural Resources (NASDAQ: VNR  )
    Clocking in at No. 2 with a five-year compound annual growth rate of 172% is Vanguard Natural Resources. The company started with just 67 billion cubic feet equivalent of mainly natural gas reserves in Kentucky and Tennessee back in 2007. Today, the company has 175 million barrels of oil equivalent reserves spread across nine operating areas.

  • [By Matt DiLallo]

    The problem, though, is finding that right deal at the right price. Vanguard Natural Resources (NASDAQ: VNR  ) for example reviews about 150 acquisition candidates each year and whittles that down to about 50 that are evaluated more deeply. Since its IPO, the company has only closed 18 transaction as few meet the stringent requirements needed to move the needle. It's a similar story at BreitBurn which screened 500 opportunities last year but just closed seven deals for about $600 million.�

  • [By Matt DiLallo]

    The only other option to fund these capital needs is to form foreign joint ventures, which could jeopardize our dream of energy independence, or simply unload mature oil and gas assets. That last option has opened up a hidden opportunity for upstream oil and gas MLPs such as LINN Energy (NASDAQ: LINE  ) and�Vanguard Natural Resources (NASDAQ: VNR  ) to consolidate these mature producing properties.

  • [By Matthew DiLallo]

    Oil and natural gas producer Vanguard Natural Resources (NASDAQ: VNR  ) likes to go against the grain. While most of its peers have been focused on acquiring or developing oil-rich assets, Vanguard has been shopping in the clearance isle and stocking up on natural gas. It's a move that could pay off handsomely in a couple of years as the supply and demand balance for natural gas begins to shift.

5 Best Canadian Stocks To Buy Right Now: Mobile TeleSystems (MBT)

Mobile TeleSystems OJSC, together with its subsidiaries, provides telecommunications services primarily in the Russian Federation, Ukraine, Uzbekistan, Armenia, and Belarus. The company provides a range of mobile and fixed line voice and data telecommunications services, including transmission, broadband, pay-TV, and various value-added services; and sells equipment and accessories. It also offers network access services, including mobile cellular voice and data communication services; automatic roaming services; GPRS and Internet access services; and 3G technology. In addition, the company�s services include the design, construction, and installation of local voice and data networks capable of interconnecting with fixed line operators; installation and maintenance of cellular payphones; lease of digital communication channels; and provision of access to open computer databases and data networks, including the Internet, as well as video conferencing, and fixed, local, and long-distance telecommunications services. Its value-added services comprise call divert/forwarding, caller ID and anti-caller ID display, conference calling, WiFi, GPRS, intelligent call assistant, APN remote access point, fixed mobile convergence, enhanced data rates for GSM Evolution, call barring, SMS, mobile office, voicemail, mobile banking, wireless application protocol, MTS-Connect, SIM-browser, point-to-point transfer, unstructured supplementary services data, downlink packet access, mobile TV, call waiting, MMS, ring tones, missed call alert, itemization of monthly bills, information and directory, international access, WEB and WAP portal, customer care system, ring back tone, collect call, and location-based services. As of December 31, 2011, the company had a mobile subscriber base of approximately 101.14 million. It has a strategic partnership with Vodafone. The company was founded in 1993 and is headquartered in Moscow, the Russian Federation.

Advisors' Opinion:
  • [By Dan Radovsky]

    VimpleCom, a joint venture of Norwegian telecom Telnor and the Russian Alfa Group, operates under the BeeLine brand in Russia. BeeLine has joined the two other ex-iPhone carrying Russian heavyweight mobile carriers, Megafon and Mobile TeleSystems (NYSE: MBT  ) , and not renewed its iPhone contract with Apple.

  • [By Eric Lam]

    Manitoba Telecom (MBT) gained 5.7 percent to C$33.93 after selling its Allstream fiber network business to Accelero Capital Holdings for C$520 million. The company will use the cash to invest in new wireless spectrum and improve the speed of its existing networks, Manitoba Telecom said in a statement.

  • [By Rich Smith]

    Over in Russia, market-leading cell phone provider Mobile TeleSystems (NYSE: MBT  ) has just confirmed that, as of 2012, it no longer sells Apple's (NASDAQ: AAPL  ) new iPhone models to its customers directly. The company does still stock, and sell, some older iPhone models. But for iPhone5 and on up, MTS now answers phone calls from Apple with a Spasibo, ne nada. ("Thanks, but no thanks.")

Friday, November 22, 2013

4 Stocks to Buy at Any Price

RSS Logo Lawrence Meyers Popular Posts: 3 International Dividend Stocks You Must Own5 Overpriced Stocks to Ditch Now3 Income-Generating Covered Calls on Blue-Chip Stocks Recent Posts: 4 Stocks to Buy at Any Price Should I Buy SBUX Stock? 3 Pros, 3 Cons 3 Income-Generating Covered Calls on Blue-Chip Stocks View All Posts

stocks-to-buy-nowCertain stocks are so intrinsic to our way of life that it’d probably be a fine strategy to just hold them until the sun explodes in a supernova.

The thing is, if you’re a value investor — and I am — their prices might be a little too much to bear. However, as long as you plan to hold them for at least 10 years, I don't think their present valuation matters — these are stocks to buy now.

It's hard to set any criteria for what makes these stocks above value considerations. They are a bit like art in that the criteria is hard to describe, but I think you’ll agree that you’ll know ‘em when you see ‘em.

Here’s a look at four stocks to buy now regardless of their valuations:

Google

stocks-to-buy-now-google-googGoogle (GOOG) was, to me, just a search engine. I never actually realized the company had taken over the world until it was too late.

Top 10 Medical Companies To Watch For 2014

Truthfully, there does not appear to be anything that Google doesn’t have its hands in. Email. Productivity apps. Tablets and smartphones. Maps. Translators. Payment services.

Good grief … GOOG even deployed a mysterious floating barge in San Francisco Bay that was revealed to be a giant art project.

I think owning Skynet … er, Google at an effective price of $875 (backing out its $163 per share in cash) — which is 20 times this year's estimates on a long-term growth rate of 16% — might even be considered a value purchase.

Amazon

stocks-to-buy-now-amazon-amznAmazon (AMZN) is a weird beast in that its earnings are pretty volatile, which makes valuing the company difficult.

It has taken over the country's retail marketplace by effectively being the go-to discounter. Anything I buy, I buy on Amazon at this point, except for clothing. Nothing can replace it. It will only continue to reach into the world.

On a visit to a manufacturing plant in Texas last month, the owner told me that they are now purchasing parts and things like screws through Amazon, not their old suppliers. Zoinks!

Meanwhile, AMZN constantly is spending money on new initiatives like Amazon Web Services and bolstering its Amazon Prime digital content, which could make it a true media threat, too.

There's no way to assign a number you can trust on what the company’s growth rate might be, and its P/E is a joke thanks to its volatile earnings.

What you can trust is that Amazon has a very clear long-term plan, and the patience and brains to pull it off. I suggest just buying and holding.

Visa

stocks-to-buy-now-visa-stock-vVisa (V) is a stock to buy now because its one part of a duopoly.

Say all you want about Discover Financial (DFS) and American Express (AXP), but MasterCard (MA) and Visa own the vast majority of the credit card world and always will. Discover came along years ago and hasn't done much to penetrate the outer walls of its competitors. And we always want to own companies that dominate their space.

I choose Visa over MasterCard only because, at the moment, Visa trades closer to its long-term growth rate. Valuation might not matter, but when all else is equal, why not go with the cheaper one?

Berkshire Hathaway

stocks-to-buy-now-Berkshire-Hathaway-brk-b-brk-aOf course, this list is not complete without Berkshire Hathaway (BRK.B).

The fact that it is a tremendously diversified conglomerate is but one reason to hold the stock. The legendary management is certainly another. However, the biggest reason might simply be that the company has weathered every storm since Noah boarded his ark.

Berkshire is very dependent on its insurance holdings, yet no matter how large a tragedy may strike the U.S., Berkshire always comes out just fine.

As with Amazon, earnings from year to year aren't easily predicted because so much of Berkshire is dependent on insurance. Earnings depend on how many claims get paid from one year to the next.

And even after Uncle Warren goes to the big See's Candies in the sky, I have every confidence in his replacements.

Read More: 5 Hidden Dividend Gems

Lawrence Meyers does not own shares in any company mentioned.

Thursday, November 21, 2013

Zing! Zynga is Off and Running (ZNGA)

With just a quick glance, it would be easy to assume this week's strength from Zynga Inc. (NASDAQ:ZNGA) is just another wild swing from a usually-volatile stock, destined to be undone just as quickly. A closer look at the chart of ZNGA, however, may reveal this isn't the usual ebb and flow from the game-publishing stock. This looks like the beginning of a much bigger breakout.

It's modestly evident on the daily chart, but to fully appreciate just how much upside ZNGA could be on the verge of doling out, you have to zoom out to zoom out to a weekly chart. On it, it becomes clear Zynga has cleared a major hurdle.

Simply put, Zynga Inc. shares have been getting squeezed into the tip of a wedge shape since early 2013. The upper edge of the triangle is the horizontal ceiling around $4.07, while the rising support line that's been in place since early 2013 makes up the lower edge of the wedge. That rising support line actually started to ascend in recent months, and with practically no room left to roam inside that wedge shape, something had to give... and it was the resistance line. ZNGA pushed above that horizontal ceiling at $4.07, and it's not looked back since.

As for the potential longevity of this breakout, there's no way of knowing for sure exactly where and when ZNGA will stop rising. But, bear in mind that the longer the breakout brews, the bigger the breakout move. The buildup period for this breakout lasted for months, so Zynga Inc. may be able to at least get several weeks' worth of traction now that the ball is rolling. A move to $8.00 isn't out of the question, though trades may want to start thinking defensively at anything above $6.00.

The prompt for the breakout was success in the courtroom. As it turns out, Zynga is not going to have to pay an estimated $25 million for the way one of its games plays. Another game designer was claiming that the process used to hand-out in-game rewards was its intellectual property. The judge and jury disagreed, and the market loved the news. Truth be told though, it wasn't a big deal for ZNGA (the company, not the stock) either way. Thing is, the hollowness of the perceived victory doesn't matter. This stock was clearly primed for a breakout. All it needed was a catalyst - and catalyst - to get going. The court-case thing did the trick, catapulting shares into a breakout that had been building up for a long while. Now that it found one, it's off to the races. There's still plenty of meat left on the bone to chase though.

Oh, and just for the record, no, the newfound strength has nothing to do with the company's fundamentals. The Zynga Inc. fundamentals, quite frankly, aren't impressive. Doesn't matter. The market is ready to see ZNGA in a bullish light, and that's good enough for a few weeks' worth of upward momentum.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter.

Wednesday, November 20, 2013

Opening Print

The Algos did run amok yesterday. After a few sell programs they did a few buy programs. This actually did go on all day. We suspect today will be more of the same. Sure the S&P closed lower two days in a row. Big deal. It's only 15 handles off its all time contract high. We suspected that the ESZ would sell off a bit this week and we don't think it's over yet. We leaned to weak in the first part of the week and firm later in the week. We were right: the boat got a little too full and now its needs to sell off a little and back and fill. The upside, however, is not over yet. As always, use stops and keep an eye on the 10-handle rule. Don't forget to catch MrTopStep on The Closing Print video found under the OptionsTV page (top bar). We report directly from the SPX pits, wrapping up the day and positioning for trade tomorrow. OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits MrTopStep can be followed on Twitter at twitter.com/MrTopStep For LIVE futures chat, more information on the 10-handle rule and futures educational content CLICK HERE FOR A SEVEN-DAY FREE TRIAL.

Tuesday, November 19, 2013

"Commission-only" planners could be next group out of pay compliance

commission-only, cfp board, fee-only, compensation

CFP holders who describe themselves as “commission-only” could face their own issue with misrepresenting how they're paid under CFP Board rules — a mirror image of the tiff the board has caused among fee-only planners.

About 900 CFP holders are listed as commission-only on the Certified Financial Planner Board of Standards Inc. database. A review by InvestmentNews showed that these commission-based registered representatives work at the wirehouses, several regionals and a number of independent-contractor broker-dealers.

Top 10 Safest Companies For 2014

While the listed reps may limit themselves to commission business, their firms don't. All the major firms run investment advisory businesses and earn fees, as do many insurance companies and smaller broker-dealers.

But under CFP Board guidelines, it appears that self-described commission-only CFP holders who are affiliated with firms or related parties that earn fees should describe themselves as receiving both commissions and fees.

Likewise, the board has been clear that CFPs cannot call themselves fee-only if they're affiliated with a firm that earns commissions, even if the planner does not receive any commission income.

The commission-only description creates a disclosure problem similar to the fee-only description, said Brian Hamburger, founder of MarketCounsel LLC, a compliance consultant.

“This is the other side of that” fee-only issue, Mr. Hamburger said.

Dan Drummond, spokesman for the CFP Board, declined to comment specifically about commission-only CFPs, noting that the board has reached out to all of the nearly 69,000 CFP holders to inform them of their disclosure obligations.

Mr. Drummond added that the board's own analysis shows that “only a small percentage” of CFP holders may be incorrectly identifying their compensation method.

But if commission-based planners have to describe themselves as fee-and-commission, “they'd be misrepresenting themselves to the public [because] they're really commission-only,” said one CFP holder, who asked not to be identified.

The CFP Board “really needs to be focusing on what the consumer is paying,” said Rick Kahler, founder of the Kahler Financial Group Inc., a fee-based RIA.

Mr. Kahler said the CFP Board recently told him to describe his compensation as fee-and-commission because he is a shareholder in a separate family-owned real estate business that earns commissions.

“I haven't sold real estate for 10 years,” he said. “If I have to tell the world I am fee-and-commission, that is more dishonest than saying fee-only.”

Mr. Kahler said he would continue to call himself a fee-only planner and drop his CFP designation if necessary.

“Branding myself as fee-only is ! more important than having a CFP,” he said.

Mr. Hamburger, however, doesn't see a problem with the CFP Board's policy on compensation, at least with the larger firms.

Clients using a fee-based wirehouse adviser, for example, contract with the wirehouse, not the adviser, Mr. Hamburger said, and the firm earns commissions and other revenue from the client, which should be disclosed as both fee and commission.

Monday, November 18, 2013

The Wine Shortage: Will It Help or Hurt Wine Stocks?

Top 5 Blue Chip Companies To Watch For 2014

Did you know there is a wine shortage? It is being caused by the increasing number of wine drinkers, and the amount of wine being consumed by those wine drinkers is also increasing. In addition, the amount of wine being produced is dropping, according to Morgan Stanley Research, which showed that wine production hasn't been this low since before 1970.

One reason why the consumption of wine is increasing is that studies have shown that red wine may help prevent memory loss and even reduce the effects of Alzheimer's, primarily due to the resveratrol.  Red wine has a much higher concentration of resveratrolthan other foods such as peanuts and tomatoes.

There are several companies involved in the production and distribution of wine, but in many cases, it is not the major portion of the business. Based on the free list at WallStreetNewsNetwork.com, there are over twelve stocks that distribute wine and liquor, two of which pay dividends. Constellation Brands (STZ) makes and sells table wines, sparkling wines and dessert wines. The stock trades at 7.4 times trailing earnings and 18.5 times forward earnings.

The largest is Diageo (DEO), an alcoholic beverage distributor which sells many brands of wine, including Blossom Hill, Sterling Vineyards, Beaulieu Vineyard, Navarro Correas, Acacia Vineyard, Rosenblum Cellars, Piat d'Or, Chalone Vineyard, and Santa Rita. The stock trades at 20.5 times trailing earnings and 17.2 times forward earnings. It pays a yield of 2.9%. 

Brown-Forman Corporation (BF-B) is another liquor distributor which is most known for its Jack Daniel's and Southern Comfort brands. It also sells the Sonoma-Cutrer brand of wines and Corbel California Champaigne. The stock has a forward price-to-earnings ratio of 23.1, an improvement over its trailing PE of 27.6. The company pays a yield of 1.6%. Latest quarterly earnings were down 2.7% on 3% increase in revenues.

If you are looking for more of a pure play, there is a small one based in Turner, Oregon, Willamette Valley Vineyards Inc. (WVVI), which produces and markets Syrah, Merlot, Cabernet Sauvignon, Cabernet Franc, The Griffin, and Viognier under the Griffin Creek label. The stock trades at 18 times earnings, but does not pay a dividend.

Treasury Wine Estates (TSRYF), which tradee at 71.8 times earnings, distributes the Berenger and Chateau St. Jean wine brands.
For a free list of all the other wine and liquor stocks, which can be downloaded, sorted and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

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

Posted-In: Markets

Originally posted here...

  Around the Web, We're Loving... Come Learn 6 Proven Trading Strategies at Our Holliday Trading Summit Learn to Use Trading Platforms Like Hedge Fund Traders do Rumsfeld: Denial of Benefits to Fallen Soldiers' Families 'Inexcusable' Come See How the Pro's Trade in this Exclusive Webinar Facebook, Baidu Lead Big Caps Beating Shutdown What Should You Know About AMZN? Most Popular CareFusion To Acquire Vital Signs Division of GE Healthcare For $500M Barron's Recap: Is The Bubble Ready To Burst? Earnings Expectations For The Week Of November 18: More Retailers On Deck Four Apple Stories You Might Have Missed This Weekend Boeing Receives 1,000th 787 Dreamliner with Order of 30 from Etihad Airways Stocks Hitting 52-Week Lows Related Articles () American Eagle Energy to Begin Trading on NYSE Beginning Wednesday, November 20, 2013 Valuation Myths: Young Companies Cannot be Valued V is For Vega Monday Market Movement – Up, of Course! The Wine Shortage: Will It Help or Hurt Wine Stocks? The Main Reason All Investors Should Own Small Cap Stocks View the discussion thread. adsonar_placementId=1587471;adsonar_pid=3134769;adsonar_p

Sunday, November 17, 2013

5 Best Casino Stocks To Buy Right Now

Elray Resources, Inc. (ELRA)

Today, ELRA remains (0.00%) +0.000 at $.160 thus far (ref. google finance Delayed:� 1:13PM EDT July 2, 2013).

Elray Resources, Inc. through its online gaming and turnkey solution subsidiary Elray Gaming, previously reported the launch and operations of the Golden Galaxy online casino.

Golden Galaxy is a licensed online casino, and whilst it complies fully with the UIGEA (The Unlawful Internet Gambling Enforcement Act of 2006) and does not accept US players it is targeted towards other regulated and rapidly growing markets. Golden Galaxy’s software is provided and maintained by Playtech Limited, the world’s largest online gaming software supplier traded on the London Stock Exchange�� Main Market, offering cutting-edge, value added solutions to the industry’s leading operators. Since Playtech’s inception in 1999 the world�� leading online gaming software company, and bears the official approval of the Technical System Testing of North America Inc. (TST), which has periodically verified that the games are true and fair.

5 Best Casino Stocks To Buy Right Now: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Dan Caplinger]

    MGM has built a history of being the odd player out in many of the most lucrative opportunities in the gaming industry. In Macau, the company is stuck in the slower-growth area of the Asian gaming destination. In Las Vegas, the new CityCenter area in the mid-Strip has watered down MGM's opportunities and has created another potential barrier for patrons coming from the northern end of the Strip to its namesake MGM Grand property. And in New Jersey, where online gaming has boosted prospects for Caesars Entertainment (NASDAQ: CZR  ) and Boyd Gaming (NYSE: BYD  ) , MGM has no exposure.

  • [By Seth Jayson]

    Boyd Gaming (NYSE: BYD  ) reported earnings on April 24. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended March 31 (Q1), Boyd Gaming met expectations on revenues and beat expectations on earnings per share.

  • [By Travis Hoium]

    Earnings from Boyd Gaming (NYSE: BYD  ) surprised investors last week, but there's still a lot of fundamental weakness for the company. Revenue is declining across the country as more supply is added to the market, and the only way to grow is through acquisitions. The Fool's Erin Miller sat down with Travis Hoium to see how to play the gaming market now.�

5 Best Casino Stocks To Buy Right Now: Pinnacle Entertainment Inc.(PNK)

Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Sean Williams]

    Time to make the switch
    If I could name a sector that I'd certainly tread lightly around considering that consumers are tightening their wallets, it would be the casino sector. Casino companies rely on loose wallets and vacations to drive profits. This is why I feel it could be the time to say goodbye to casino and race track operator Pinnacle Entertainment (NYSE: PNK  ) near its 52-week high.

Best Tech Stocks To Own Right Now: Penn National Gaming Inc.(PENN)

Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.

Advisors' Opinion:
  • [By Paul Ausick]

    Penn National Gaming Inc. (NASDAQ: PENN) completed on Monday the spin-off of its real-estate holdings into a new REIT, Gaming and Leisure Properties Inc. (G&LP) (NASDAQ: GLPI). The spin-off was first announced a year ago. Shares in GLPI are trading at around $46.51 after opening at $45.76 this morning.

  • [By Roberto Pedone]

     

    Penn National Gaming (PENN) is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. This stock closed up 1.4% at $56.13 in Monday's trading session.

     

    Monday's Volume: 1.11 million

    Three-Month Average Volume: 824,334

    Volume % Change: 73%

     

     

    From a technical perspective, PENN jumped modestly higher here right above some near-term support at $54.71 with above-average volume. This move is quickly pushing shares of PENN within range of triggering a breakout trade. That trade will hit if PENN manages to take out some near-term overhead resistance at $57.44 to some past resistance at $58 with high volume.

     

    Traders should now look for long-biased trades in PENN as long as it's trending above Monday's low $55.65 or above more support at $54.71 and then once it sustains a move or close above those breakout levels with volume that this near or above 824,334 shares. If that breakout hits soon, then PENN will set up to re-test or possibly take out its 52-week high at $59.93. Any high-volume move above $59.93 will then give PENN a chance to hit $65.

     

  • [By Paul Ausick]

    Stocks on the Move: BlackBerry Ltd. (NASDAQ: BBRY) is down 16.4% at $6.50 after announcing that no buyout bid will be forthcoming. Penn National Gaming Inc. (NASDAQ: PENN) is down 76.7% at $13.75 after spinning-off its real-estate holdings into a REIT. Suntech Power Holdings Co. Ltd. (NYSE: STP) is up 15.5% at $1.53 following the acquisition of its major operations in Wuxi.

5 Best Casino Stocks To Buy Right Now: (XTRN)

Las Vegas Railway Express Inc. focuses to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. It plans to establish a ?Vegas-style? passenger train service. The company is based in Las Vegas, Nevada.

5 Best Casino Stocks To Buy Right Now: Umax Group Corp (UMAX)

Umax Group Corp., incorporated on March 21, 2011, is a development-stage company. The Company focuses to develop and distribute its product to the arcade and entertainment industry. The Company�� products include Rocket Launch, is Strength testing game which allows players to test their pushing/ throwing strength; Space Hockey, is a two player hockey game - each player must score as many as possible goals and Boxer, is a Simple punch testing game: insert coin/token/bill, press start button, hit the punch bag, wait for result, and try to beat opponent�� score or high score.

As of April 30, 2013, the Company had no revenues. The Company has developed its business plan, and executed exclusive distribution contract GEO a private enterprise, where it engages GEO as an independent contractor for the specific purpose of developing, manufacturing and supplying games for the Company.

Saturday, November 16, 2013

Top Performing Companies To Watch For 2014

NEW YORK (TheStreet) --Ocwen Financial  (OCN) one of the nation's largest collectors of mortgage debt, is considering branching out into other types of consumer debt collection.

"That's something that we are looking because we're generating substantial amount of excess cash flow in Ocwen," Chairman Bill Erbey told TheStreet during one of several interviews for this profile published Wednesday. "We haven't told anybody publicly what that would be," he added.

Investor Wilbur Ross, who sits on Ocwen's board of directors, believes such an expansion would be a natural fit.

"When you think about what the skill sets are, it's managing very complex interactions with consumers under very stressful circumstances, mainly default, and doing it with a lot of, I don't want to say entry level, but almost entry level people, and doing it on a vast scale, and along the way managing that process in two continents, mainly the Americas and India. So those are skill sets that are pretty rare, and pretty valuable. There are all sorts of other consumer debt instruments that I have no doubt that they could service. So even if something were to go slow with mortgage servicing, I think there are plenty of other opportunities. Consumer's finance is not going to go away, and there aren't that many people that are good at it," Ross says.

Ocwen reported third quarter earnings Thursday, though the issue did not come up on a conference call with analysts and investors.

Rick Biggs, partner at New York-based hedge fund Consector Capital, which owns Ocwen shares, sees an opening for Ocwen in consumer debt collection. He says Portfolio Recovery Associates, Inc.  (PRAA) and Encore Capital Group  (ECPG) "are the best and at this point almost the only real solid operators so there is room I think for a little more competition." (PRAA) But Zach Gast, analyst with research firm CFRA, believes collecting consumer debt be a more difficult transition for Ocwen than it may seem on the surface. That's because non-mortgage-related consumer debt collecting is based on a different business model. First of all, the amounts involved are smaller, meaning lots of investment in infrastructure for a relatively small payoff. "Mortgage is the one that's a huge debt. It stays outstanding for 30 years. So if I've got to employ calling centers -- you know, vast automated systems to send out statements every month to certain customers and know the right timing and program all that in, that's very different when you're talking about a $500 credit card bill that's overdue," Gast says. The analyst adds, "if you think paperwork problems are difficult on a $150,000 mortgage, wait 'til you get a $500 credit card bill, where the consumer has probably disputed at least one of those charges." Consumer debt collectors tend to focus on buying debt that has already defaulted, which they buy for pennies on the dollar, Gast says.

According to its most recent 10-K, Portfolio Recovery Associates' portfolio of credit card debt, which was by far its largest segment, stood at $49.3 billion, in terms of the original amount that was owed. It had paid just over $1.9 billion for the chance to collect that debt. Anything it collects above that amount, minus expenses, would fall to the bottom line. By contrast, mortgage servicers such as Ocwen do not buy the debt. They buy what are known as mortgage servicing rights (MSRs), which entitles them to collect a fee in return for servicing the mortgage. Ocwen services both performing and non-performing loans, but its specialty is the non-performers. It is, in fact, the largest servicer of non-performing residential mortgages in the U.S. It services $130 billion worth of unpaid principal on outstanding mortgages, or 13% of the total $1 trillion in delinquent U.S. mortgages, more than Wells Fargo, Bank of America or JPMorgan Chase, according to data through June 30 from trade publication Inside Mortgage Finance.

--Written by Dan Freed in New York 


Follow @dan_freed

Top Performing Companies To Watch For 2014: Pan Orient Energy Corp (POE.V)

Pan Orient Energy Corp. operates as a junior oil and natural gas company. The company holds interests in four partially developed concessions located on-shore Thailand; and four production sharing contracts onshore Indonesia. It also has interests in contiguous sections of heavy oil sands leases in the Sawn Lake Property within the central Alberta Peace River Oil Sands area. As of December 31, 2011, the company had proved plus probable reserves of 19 million barrels in Thailand. Pan Orient Energy Corp. is headquartered in Calgary, Canada.

Top Performing Companies To Watch For 2014: Astronics Corporation(ATRO)

Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace and defense industries worldwide. It operates in two segments, Aerospace and Test Systems. The Aerospace segment?s product lines include aircraft lighting, cabin electronics, airframe power, avionics databus products, and airfield lighting. This segment serves airframe manufacturers that build aircraft for the commercial, military, and general aviation markets; suppliers; and aircraft operators, such as airlines and branches of the U.S. Department of Defense, as well as the Federal Aviation Administration and airport operators. The Test Systems segment designs, develops, manufactures, and maintains communications and weapons test systems, and training and simulation devices for military applications. It sells its products primarily to the U.S. military, foreign militaries, and manufacturers of military communication systems. The company was founded in 1968 and is headquart ered in East Aurora, New York.

Advisors' Opinion:
  • [By Jeremy Bowman]

    What: Shares of Astronics Corporation (NASDAQ: ATRO  ) were headed for the stars today, gaining 11% after a strong quarterly earnings report.

  • [By Rich Smith]

    Astronics Corp. (NASDAQ: ATRO  ) is bulking up in aerospace.

    On Tuesday, the manufacturer of high-performance lighting, electrical power, and automated test systems for the global aerospace and defense industries announced that it has agreed to buy fellow aerospace interior components maker PECO for approximately $136 million, cash. Privately owned PECO is a supplier to Boeing and a maker of fuel access doors and also "passenger service units" that incorporate air handling, emergency oxygen, electrical power management, and cabin lighting systems.�

Top 5 Blue Chip Stocks To Invest In Right Now: China Kangda Food Company Ltd (P74.SI)

China Kangda Food Company Limited, through its subsidiaries, engages in the production, processing, sale, and distribution of food products in China. The company is involved in the production and trading of food products; breeding and sale of livestock and poultry; development and sale of rabbits; planting and sale of vegetables; testing and checking of livestock; feed processing; sale of feed products; and provision of guarantee services. It provides chilled and frozen rabbit meat; chilled and frozen chicken meat; processed foods, including instant soup, curry food, chicken based cooked products, roasted rabbit food, meatballs, de-oxygenated consumer packed chestnuts, and seafood; and other products, such as pet food, dehydrated vegetables, poultry, rabbit organs, fruits, dried chili, pig liver, and seasoning products. The company distributes its products in 26 provinces and 30 cities in the People�s Republic of China and exports to approximately 20 countries and cities, including Japan, the United Arab Emirates, and various countries in the European Union. China Kangda Food Company Limited was founded in 1992 and is headquartered in Qingdao, the People�s Republic of China.

Top Performing Companies To Watch For 2014: Laurion Mineral Exploration Inc (LME.V)

Laurion Mineral Exploration Inc., an exploration development company, engages in the acquisition, exploration, evaluation, and development of gold and base metal properties in the United States and Canada. It has an option to acquire a 100% interest in the Bell Mountain property located in Nevada; a 100% interest in 15 contiguous mining leases located in Irwin, Walters, Elmhirst, and Pifher Townships in the Beardmore area, Ontario; and a 100% interest in 13 mining claims totalling 179 units located in Pifher and Elmhirst Townships, Ontario. The company also has an option to acquire a 100% interest in 4 mining leases totaling 29 hectares in Elmhirst Township; and a 100% interest in 21 claim units totalling 135 hectares in Walter and Elmhirst Townships, Ontario. In addition, it has a strategic alliance agreement with Kiska Metals Corporation and certain of its affiliates to acquire a 51% interest in the Midlothian project located in the Township of Midlothian, Ontario. The c ompany was formerly known as Laurion Gold Inc. and changed its name to Laurion Mineral Exploration Inc. in October 2006. Laurion Mineral Exploration Inc. was incorporated in 1945 and is based in Toronto, Canada.

Top Performing Companies To Watch For 2014: SL Industries Inc. (SLI)

SL Industries, Inc., through its subsidiaries, engages in the design, manufacture, and marketing of power electronics, motion control, power protection, and specialized communication equipment in the United States and internationally. The company offers power conversion products for use in customer�s specific equipment under the SL Power Electronics, Condor, and Ault brand names to the original equipment manufacturers (OEMs) of medical, industrial/instrumentation, military, and information technology equipment. It also provides custom power conditioning and distribution units for custom electrical subsystems for OEMs of medical imaging, medical treatment, military aerospace, semiconductor, solar, and advanced simulation systems under the Teal brand name; and power quality products, including three-phase AC reactors, DC link chokes, and a series of harmonic, RFI/EMI, and motor protection filters used in industrial plants, natural resource harvesting sites and facilities, a nd commercial buildings to protect equipment from power surges under the MTE brand name. In addition, the company offers high power density precision motors that are used in military and commercial aerospace, oil and gas, and medical and industrial product applications; and communication and power protection products/systems that are used to protect electric utility transmission lines and apparatus, as well as products and systems used in rail and highway industries. SL Industries, Inc. was founded in 1956 and is based in Mount Laurel, New Jersey.

Friday, November 15, 2013

Reynolds Americian Announces Debt Offering (RAI)

On Friday, tobacco company Reynolds American, Inc. (RAI) reported a public offering of $1.1 billion aggregate principal amount of senior notes.

The notes include $500 million aggregate principal amount of 4.850% Senior Notes due 2023 and $550 million aggregate principal amount of 6.150% Senior Notes due 2043.

RAI plans to use the funds obtained from the notes to buy back $200 million of the outstanding principal amount of its 7.300% notes due in 2015 and the $775 million outstanding principal amount of notes due in 2016.

Reynolds American shares were mostly flat during pre-market trading Friday. The stock is up 16% YTD.

Tuesday, November 12, 2013

Dan Loeb reveals stake in FedEx

fedex stock

Shares of FedEx popped on the news of Dan Loeb's investment. Click the chart to track the stock.

NEW YORK (CNNMoney) Hedge fund manager Dan Loeb revealed a stake in FedEx Tuesday morning, adding that he likes the stock and the management of the company.

Shares of FedEx (FDX, Fortune 500) spiked following the announcement.

Speaking during a conference Tuesday hosted by The New York Times Dealbook blog, Loeb told the audience that he met with FedEx CEO Fred Smith in Memphis last week.

"We had a very constructive discussion about the company," said Loeb, founder and CEO of Third Point hedge fund. "I think he disagrees with some of our notions...so life goes on. This is a normal part of the process."

Loeb is known for his activist approach and forcing change at companies. Most notably, he questioned the academic credentials listed in the bio of former Yahoo (YHOO, Fortune 500) CEO Scott Thompson. The pressure from Loeb eventually led to Thompson stepping down. He was replaced by Marissa Mayer from Google (GOOG, Fortune 500) and Yahoo's stock has been on a tear since she took over the company.

Despite his disagreements with Smith, Loeb said he likes him and will "absolutely not" try to oust him. Rather, Loeb called Smith one of the great American CEOs and entrepreneurs. But he was mum on the size of his position in FedEx.

Loeb also discussed his position in Sony. He is the largest stakeholder in Sony (SNE) and has been pushing the company to spin off its entertainment business. Though Sony has refused, Loeb doesn't consider that a lack of success.

"I don't think of us as going against Sony," he said, adding that he has a good relationship with the company and has met with Sony CEO Kazuo Hirai twice, most recently a few weeks ago in Tokyo. "We wanted a spinoff because we wanted transparency. We wanted to highlight the values. We wanted a greater focus on profitability and accountability, and they basically said they're going to do all of those things."

Loeb also responded to criticism from George Clooney, who compared Loeb's involvement in Sony to a Wal-Mart strangling businesses in small towns.

"That sounds a little hyperbolic," Loeb said, adding that he understands where Clooney is coming from. Loeb said he would love to meet Clooney and ! believes they would actually agree on the company more than they would disagree.

"I think we both want the same thing," Loeb said. "We want less money spent on overhead and more money spent on making movies."

In defense of hedge funds   In defense of hedge funds

Loeb also commented on his position in Herbalife (HLF). He bought a stake in the nutritional supplement company even as rival hedge fund manager Bill Ackman was shorting it and saying he thought Herbalife was a pyramid scheme. Loeb's feud with Ackman is highlighted in the December issue of Vanity Fair.

"Let's be clear about a couple things," said Loeb Tuesday. "I have a fiduciary duty to earn a rate of return for my investors. My fiduciary duty is to my investors, not Bill Ackman. An opportunity was created where we thought a sell-off in Herbalife was overdone. I spent my Christmas vacation last year analyzing the company."

Loeb bought shares of Herbalife last December, after Ackman's accusations sent shares of the company plunging. Loeb set a price target on the stock between $55 and $68 per share, but sold his position during the first quarter when the stock reached $44 per share.

"There is no duty to hold a stock until it hits the price target," Loeb said. "We decided to take the money and run. There was no pump and dump." To top of page

Sunday, November 10, 2013

How Will Disney Handle the ABC and Jimmy Kimmel Protests?

Over the weekend there was something very unusual: nationwide protests against Jimmy Kimmel and ABC over racism. The protest that I saw was on Saturday afternoon in Houston by the jam-packed Galleria, at the busy intersection of Westheimer and Post Oak Blvd. The protesters had signs calling for Jimmy Kimmel to be fired and calling for ABC to stop racism against the Chinese. It was also calling for no fake apology. This issue has been going on since October, and it seems to be continuing rather than dissipating.

There were probably a couple of hundred protesters at the Houston protest at the time. ABC now has a situation that it will have to do some serious damage control on very soon. Jimmy Kimmel’s “Kids Table” asks kids questions about current events, and it was not actually Kimmel himself who made the offense.

ALSO READ: Ten Brands That Will Disappear in 2014

At issue is that ABC is owned by The Walt Disney Company (NYSE: DIS). Attacking ABC is one thing. The issue is whether or not this spreads to attacking the Disney parent company or not. Then you have to wonder what happens if protests were to start boycotts or advertiser backlash.

One of the kids on the live show suggested that the way the U.S. should deal with its ballooning debt is to kill all the people in China. Kimmel’s apology came over a week ago, and where this gets interesting is that Kimmel was not the one who made the comments. He also even tried to defuse the situation after the comments. Where the protests were pointed is that the entire skit should have not been shown at all.

It has already been shown that ABC is no longer going to air the “Kid Table” segment. Now the White House has a We The People petition that has over 103,000 signatures seeking a “sincere apology.” Jimmy Kimmel has over 3.2 million followers on Twitter, and the @JimmyKimmelLive also has 345,000 followers.

How this all plays out is something that remains to be seen. The calls for “No Fake Apology” and “Fire Jimmy Kimmel Now” may grow louder. This also challenges many aspects about what editors of shows have to decide.

ALSO READ: The Most Expensive Shows on TV

Networks are of course responsible for when their public faces are involved in scandals of this magnitude, but what about when the scandal is actually caused by one of the guests on a show? The Walt Disney Company (NYSE: DIS) does face issues of this magnitude from time to time. The question is how this will be dealt with, and then what precedent it sets going forward.

Saturday, November 9, 2013

'Great rotation' of bonds to stocks flawed: Bernstein

stocks, bonds, rotation, economy Bloomberg News

The idea of a “great rotation” from bonds to stocks is flawed and investors expecting that shift to boost equity prices may be disappointed, according to Sanford C. Bernstein & Co.

“A rotation mental model may stem from incomplete notions of supply, demand, pricing and flows in capital markets,” Luke Montgomery, an analyst at the New York-based firm covering asset managers, wrote Friday in a note to clients.

Montgomery cited misconceptions over what happens when one investment type appears to win favor at the expense of another, saying there's no automatic correlation between the migration of money and asset prices. He also disputed the notion that individual investors are holding less in stocks than they have historically, supposedly setting up a major shift.

Investment analysts have been debating whether a major move from bonds to stocks, coined the great rotation by Bank of America Merrill Lynch analysts in a January 2011 research report, is under way. Michael Hartnett, BofA Merrill Lynch's chief investment strategist in New York, wrote in an Aug. 15 note that the thesis has moved from controversial to consensus, joining analysts from UBS AG and Credit Suisse Group AG in recommending investment approaches based on the idea. Strategists from HSBC Holdings Plc, Deutsche Bank AG and Jupiter Investment Management Plc. disputed the rotation.

In Friday's report, Mr. Montgomery questioned how much of a rotation can occur and what its impact would be. He took aim at the argument that high levels of bank deposits and bond mutual fund assets created by the U.S. Federal Reserve's stimulus efforts might suddenly pour into stocks.

'WIDER RANGE'

“While quantitative easing floods investors with liquid financial assets and can inflate other asset values, this does not mean deposits in aggregate then become a latent source of funds for risk assets,” Mr. Montgomery wrote.

What's more, he said, bonds can drop in value without money flowing into other assets.

“Wealth destruction in bonds can be an independent event - - bond wealth can simply evaporate and need not be offset by wealth created in equities, or any other asset class,” he wrote. “Once the rate hike cycle begins, there is a far wider range of possibilities for the future market values of (and allocations to) cash, bonds, and equities than may be envisioned by the great rotation mental model.”

U.S. investors pulled $165 billion from equity mutual funds in the three years ended Sept. 30, according to data compiled by the Investment Company Institute in Washington. The Standard & Poor's 500 Index of U.S. stocks, which lost more than half its value in the 2007-2009 financial crisis, rose 57% in

Friday, November 8, 2013

Why Approach Resources Inc.'s Shares Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Approach Resources (NASDAQ: AREX  ) dropped 10% today after the company released earnings.

So what: Sales rose 33.8% from a year ago, to $44.2 million, and the company swung to a profit of $495,000, or $0.01 per share. After adjusting for one-time items, the company made a profit of $0.07 per share, in line with estimates. 

Management did lower 2013 production estimates from 3.6 MMBoe, to 3.4 MMBoe, due to downtime at a third-party NGL fractionation facility. This is where the real disappointment came today.

Now what: Management still expects to grow production 40% next year by drilling 70 more horizontal wells. I'm also encouraged by a 20% decline in the cost of each well. This wasn't a great quarter, but the plant shutdown is a one-time event, so I don't think it's a reason to panic. Investors are getting a nice discount today, and if operational improvement continues, next year, the stock has room to run higher.

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Thursday, November 7, 2013

Whole Foods, Wendy’s slide; Twitter debut awaited

NEW YORK (MarketWatch) — Will Twitter Inc. soar or tank after its stock-market debut?

Investors are looking for big moves from the social-media company's stock after its initial public offering on the New York Stock Exchange Thursday.

Reuters Enlarge Image A sign displays the Twitter logo on the front of the New York Stock Exchange ahead of the company's IPO in New York.

Twitter (TWTR)   priced its shares at $26 late Wednesday. Cantor Fitzgerald analysts have already assigned the stock a price target of $32. Follow our live-stream updates on the #TwitterIPO here.

Quarterly earnings reports pushed Whole Foods Market Inc. (WFM)  and Wendy's Co. (WEN)  lower in premarket trade Thursday.

Whole Foods shares tanked 10.3% after the company said late Wednesday that fourth-quarter revenue fell short of expectations, and the grocery chain's earnings outlook would be cut. The firm projected an earnings-per-share range of $1.65 to $1.69 in the first quarter of 2014, while analysts polled by FactSet had expected $1.73.

• Twitter IPO: Follow the latest news and developments »
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Shares of Wendy's slid 12% premarket as the company said its third-quarter losses narrowed, but revenue failed to meet expectations. The company reported that sales inched up to $640.8 million, but missed the $643 million expected by analysts, according to a Thomson Reuters survey. The fast-food chain also said it expects adjusted earnings to fall 10% in the fourth quarter compared to the previous year.

Decliners

Shares of Tesla Motors Inc. (TSLA)  slipped in premarket trade Thursday as the market continued to digest a Tuesday earnings report from the auto maker, whose growth failed to meet highly optimistic investor expectations. The stock closed down 14.5% on Wednesday as Wall Street analysts adjusted their outlooks. The shares slipped another 4.1% Thursday morning.

TWITTER IPO
• Twitter prices IPO above range at $26
• 10 things trending more than #TwitterIPO
• The right price to pay for Twitter after the IPO
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• Follow latest coverage on Twitter IPO
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Shares of Abercrombie & Fitch Co. (ANF)   slipped 2.1% Thursday after Bank of America Merrill Lynch analysts reportedly downgraded the retailer's stock to underperform from buy.

Gainers

Shares in J.C. Penney Co. Inc. (JCP)   were up 5.7% premarket after the firm said same-store sales rose in October, the first increase in nearly two years for the beleaguered retailer. The rise of 0.9% in sales at stores opened more than a year ago contrasts with a decline of 4% in September.

Stratasys Ltd. (SSYS)  shares advanced 4.1% premarket after the company announced third-quarter results.

LivePerson Inc. (LPSN)  shares climbed 16.9% in premarket trade after the company reported third-quarter earnings late Wednesday.

Wednesday, November 6, 2013

Security-minded investors scoop up Barracuda’s…

Firewall and data storage company Barracuda Networks made its public debut this morning on the New York Stock Exchange, raising $74 million, at an opening price of $18 per share.

Investors immediately pushed CUDA to over $23 per share, though the price settled to about $22 just before the market closed.

The 10-year-old company's IPO follows network security company FireEye's sizzling IPO in late September. It's the latest affirmation of Wall Street's continuing love affair with technologies designed to help the good guys slow down data thieves, cyberspies and hacktivists.

"It was very exciting to get to ring the opening bell and see our stock trade for the first time," Barracuda CEO William "BJ" Jenkins told CyberTruth. "A lot of partners and customers want to deal with companies they view as likely to be around for a long time. We've reached a maturity level to where we felt it was a good time to make the private to public leap."

Barracuda provides firewalls, data storage and security systems, much of it through the Internet cloud, to more than 150,000 small and mid-sized businesses in over 100 countries.

For its fiscal year ended Feb. 28, Barracuda reported a loss of $9.2 million on revenue of $198.9 million; that followed a year in which it reported a profit of $466,000 on revenue of $160.9 million.

Barracuda has adopted Nordstrom's customer-service approach, while catering to companies of 100 to 5,000 employees. Tech buyers get pampered the way Nordstrom treats shoe shoppers. In the tech space, that's a disruptive way to do business, says Jenkins, a former EMC senior exec.

Barracuda charges a flat, not per user, fee; supports a 30-day full refund policy; and staffs customer service phone lines with live experts. "We take risks away and then we support our customers like no other company out there," Jenkins says. "Our renewal rate for subscription was 96%, on a dollars basis, in first half of this year."

Those are the kinds of metrics that entice gro! wth-oriented investors, who have no trouble looking past red ink. Wall Street has shown an eagerness to pump up the market value of companies like Barracuda and FireEye with strong growth prospects and loyal customers, says Venky Ganesan, a managing director at Menlo Ventures.

"What Barracuda does really well is package a bunch of features and deliver it in a digestible format for small and medium-sized companies," Venky says. "They're less about being at the cutting edge, and more about packaging all of this technology in a nice easy way, and they've built a really interesting business."

Barracuda ended its first day as a public company, priced at about $22 a share, up from $18. FireEye, which went public at $20 a share six weeks ago, closed Wednesday at nearly $40.

"The market currently is interested in getting what's called pure play security exposure," says Ganesan. "The number of pure play security options are limited and all of them are trading well."