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 Polycom (NASDAQ: PLCM ) have fallen by 13% today. Yesterday, the company's CEO resigned abruptly, which came amid allegations of some "irregularities" in the former exec's expense reports. That, along with with some disappointing guidance in last afternoon's earnings report, has sent analysts scurrying from the stock.
So what: Polycom's revenue of $345.2 million beat the $341.4 million consensus, and earnings of $0.15 per share were $0.01 better than the consensus as well. However, guidance of $330 million to $340 million for the third quarter was well below the $355.5 million consensus, as was the $0.10 to $0.12 adjusted EPS guidance, which undershot the $0.16 per share analyst consensus.
In the aftermath, RBC analyst Mark Sue downgraded Polycom to sell status, citing "mismanaged and inconsistent execution" for the company's declining margins and the unexpected departure of former CEO Andrew Miller as reasons for his new price target of $10. However, he also noted that the company's strong cash position could make it a target of activist investors.
Best High Dividend Stocks To Watch For 2015: Brown(n)
N Brown Group plc operates as an Internet and catalogue home shopping company in the United Kingdom. The company principally offers womenswear, menswear, footwear, household, and electrical products, as well as provides insurance services. It also operates in the Republic of Ireland, Germany, and the United States. The company was founded in 1859 and is based in Manchester, the United Kingdom.
Advisors' Opinion:- [By David Trainer]
Cloud software provider Callidus (NASDAQ: CALD) is in the Danger Zone this week. We’ve recently highlighted two other Software as a Service (SaaS) companies in Netsuite (NYSE: N) andSalesforce.com (NYSE: CRM), and CALD is a classic story of a bad company riding the coattail of the popularity of cloud computing and SaaS companies. SaaS stocks surged in 2013, and CALD followed the trend, gaining 166% over the past year.
Top 10 Sliver Stocks To Own For 2014: PC-Tel Inc.(PCTI)
PCTEL, Inc. provides propagation and optimization solutions for the wireless industry. It designs and develops software-based radios (scanning receivers) for wireless network optimization; and develops and distributes antenna solutions. The company?s scanning receivers, receiver-based products, and interference management solutions are used to measure, monitor, and optimize cellular networks. It offers various antenna products for worldwide interoperability for microwave access antennas, land mobile radio antennas, and precision global positioning systems antennas that serve applications in telemetry, radio frequency identification, WiFi, fleet management, and mesh networks. The company?s antenna solutions address public safety, military, and government applications; supervisory control and data acquisition, health care, energy, smart grid, and agricultural applications; and indoor wireless, wireless backhaul, and cellular applications. PCTEL, Inc. supplies its products to public and private carriers, wireless infrastructure providers, wireless equipment distributors, value added resellers, and original equipment manufacturers through distributors and direct sales force. The company was founded in 1994 and is headquartered in Bloomingdale, Illinois.
Advisors' Opinion:- [By Roberto Pedone]
PCTEL (PCTI) designs and develops software-based radios for wireless network optimization and develops and distributes innovative antenna solutions. This stock closed up 1.1% to $9.83 in Tuesday's trading session.
Tuesday's Range: $9.70-$9.85
52-Week Range: $5.65-$10.00
Thursday's Volume: 77,000
Three-Month Average Volume: 80,200From a technical perspective, PCTI bounced modestly higher here right above some near-term support at $9.50 with decent upside volume. This stock has been trending sideways in a consolidation pattern for the last month, with shares moving between $9.08 on the downside and $10 on the upside. Shares of PCTI are now quickly moving within range of triggering a major breakout trade. That trade will hit if PCTI manages to take out its 52-week high at $10 with high volume.
Traders should now look for long-biased trades in PCTI as long as it's trending above near-term support at $9.50 or above $9.08 and then once it sustains a move or close above $10 with volume that hits near or above 80,200 shares. If that breakout triggers soon, then PCTI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $12 to $13.
- [By Stephen Simpson, CFA]
I'm perfectly happy recycling past investment ideas, and PCTEL (PCTI) treated me quite well indeed when I owned the stock about a decade ago. Since that time, though, the company has gone through a significant transformation and is really only the same in name only. Different isn't always better, but I do believe that PCTEL now operates a collection of businesses with interesting growth and margin potential. PCTEL does not appear to be tremendously undervalued today on a cash flow basis, but with almost $3 per share in cash on the balance sheet further acquisitions could improve its growth prospects further.
Top 10 Sliver Stocks To Own For 2014: Zoetis Inc (ZTS)
Zoetis Inc, incorporated on July 25, 2012, is engaged in the discovery, development, manufacture and commercialization of animal health medicines and vaccines, with a focus on both livestock and companion animals. The primary livestock species are cattle (both beef and dairy), swine, poultry, sheep and fish, and the primary companion animal species are dogs, cats and horses. In February 2014, Benchmark Holdings PLC purchased aquaculture vaccine and development assets from animal health company Zoetis Inc.
The Company�� more than 300 product lines include vaccines, parasiticides, anti-infectives, medicated feed additives and other pharmaceutical products. The Company�� product portfolio also includes businesses, such as diagnostics, genetics, devices and services, such as dairy data management, e-learning and professional consulting. The Company operates in North America, Europe, Africa, Asia, Australia and Latin America.
Advisors' Opinion:- [By Maxx Chatsko]
Pfizer (NYSE: PFE ) recently announced plans to sell its remaining 80% stake in animal-health company Zoetis (NYSE: ZTS ) after about four months on the public market. Margins and profits aren't as high in the animal health business, which has pushed the world's largest pharmaceutical company to streamline its focus. It also highlights a delicate Catch-22 for Big Pharma.
- [By Antè´¸nio Costa] Zoetis Inc (NYSE: ZTS) Near-term outlook appears positive. A move above the key resistance level of $32.9 would help the stock touch the immediate PT of $33.98-34.21. Only a drop below $31.02 would negate the positive outlook for ZTS. ( click to enlarge )
Top 10 Sliver Stocks To Own For 2014: Revolution Lighting Technologies Inc (RVLT)
Revolution Lighting Technologies Inc., incorporated on December 16, 1993, designs, manufacture, market and sells commercial grade, light emitting diode (LED) replacement light bulbs and LED-based signage, channel letter and contour lighting products. The Company sells these products under the Seesmart, Array Lighting and Lumificient brand names. The Company operates in two segments: LED replacement lamps and fixtures and LED signage and lighting strips. On December 20, 2012, the Company acquired Seesmart Technologies, Inc., headquartered in Simi Valley, California. In August 2013, the Company announced that it has completed the acquisition of Relume Technologies (Relume). In October 2013, the Company announced that it has acquired a portfolio of general illumination LED lighting products, including several product lines from CMG Energy Solutions (CMG). In November 2013, the Company acquired Tri-State LED.
The Company�� LED replacement lamps and fixtures segment include the Seesmart business and the Array business, which has been integrated with the Seesmart business. The LED signage and lighting strips segment is comprised of the Lumificient business.
Advisors' Opinion:- [By Stock Investor]
First up we have Revolution Lighting Technologies, Inc (RVLT). As of last week RVLT had a market cap of $280m. Revenues for the last year came in at $4.4m. The company is averaging a cash burn of approximately $7m per quarter over the last two quarters. If I give the company the benefit of the doubt and assume the $7.5m of investments they made last quarter was a one time event, the cash burn then drops to under $4m per quarter. In March RVLT raised $5m from the issuance of shares priced at $1.17. The company is still in need of additional financing, and with the stock price up 400% in the last three months, it would be wise for them to issue shares right now. This increases the risk for investors dramatically right now.
Top 10 Sliver Stocks To Own For 2014: Copano Energy L.L.C.(CPNO)
Copano Energy, L.L.C. provides midstream services to natural gas producers in the United States. The company?s services include natural gas gathering, compression, dehydration, treating, marketing, transportation, processing, and fractionation. It owns and operates natural gas gathering and intrastate transportation pipeline assets; natural gas processing and fractionation facilities; and natural gas liquid (NGL) pipelines in Texas, Oklahoma, Wyoming, and Louisiana. The company operates approximately 6,800 miles of natural gas gathering and transmission pipelines; and 10 natural gas processing plants with approximately 1 billion cubic feet per day of combined processing capacity. It also operates 380 miles of NGL pipelines. The company serves third-party pipelines, distribution companies, power generation facilities, and industrial customers. Copano Energy, L.L.C. was founded in 2001 and is based in Houston, Texas.
Advisors' Opinion:- [By Eric Volkman]
Copano Energy (NASDAQ: CPNO ) is keeping its quarterly dividend steady, handing out $0.575 per unit on April 26 to holders of record as of April 22, the company announced this week. The company has disbursed the same amount every quarter since the beginning of 2009.
Top 10 Sliver Stocks To Own For 2014: Fairfax Financial Holdings Ltd (FRFHF)
Fairfax Financial Holdings Limited (Fairfax) is a financial services holding company. The Company, through its subsidiaries, is principally engaged in property and casualty insurance and reinsurance and the associated investment management. The Company�� segments consist of Insurance, Reinsurance, Insurance and Reinsurance Other, Runoff, and Corporate and Other. On December 22, 2011, the Company completed the acquisition of 75% interests in Sporting Life Inc. On August 16, 2011, the Company acquired William Ashley China Corporation. On March 24, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of The Pacific Insurance Berhad. On February 9, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of First Mercury Financial Corporation. In October 2012, its RiverStone runoff subsidiary acquired all the outstanding shares of Brit Insurance Limited. Advisors' Opinion:- [By Dan Caplinger]
That business model has been so successful that other, smaller insurance companies have emulated it. For instance, Fairfax Financial (NASDAQOTH: FRFHF ) and Markel (NYSE: MKL ) have used the same investing model to take advantage of their respective core insurance businesses. Both Fairfax and Markel have had substantial success, showing the power of using temporarily available premium reserves to make higher-return investments.
- [By Tim Brugger]
Citing the letter of intent to be acquired�for $9 a share signed Monday with a consortium led by its largest shareholder, Fairfax Financial (NASDAQOTH: FRFHF ) , BlackBerry� (NASDAQ: BBRY ) �has opted to cancel its conference call and webcast following the 7 .a.m EST release of Q2 earnings this Friday, the company announced yesterday.
- [By Charles Sizemore]
BlackBerry (BBRY) has been a value trap that has ensnared more than its share of value hunting investors in recent years — yours truly included. Buying BlackBerry stock will also likely go down in history as the single-worst investing mistake in the otherwise illustrious career of Prem Watsa — the chairman of Fairfax Financial (FRFHF) and the man commonly known as the ��arren Buffett of Canada.��/p>
Top 10 Sliver Stocks To Own For 2014: Commercial Metals Co (CMC)
Commercial Metals Company, incorporated on August 29, 1946, and its subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network, including steel mini mills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mini mill, metal recycling facilities and marketing and distribution in the United States and in international markets. The Company Americas Division operates utilizing three segments: Americas Recycling, Americas Mills and Americas Fabrication. The Company�� International Division operates utilizing two segments: International Mill and International Marketing and Distribution, which includes all marketing and distribution operations located outside the United States, as well as two United States-based trading and distribution divisions, CMC Cometals, located in Fort Lee, New Jersey and CMC Cometals-Steel, located in Irving, Texas. In October 2013, Commercial Metals Company completed the sale of Howell Metal Company, to Mueller Copper Tube Products, Inc., a subsidiary of Mueller Industries, Inc.
Americas Recycling
The Americas Recycling segment processes scrap metals for use as a raw material by manufacturers of new metal products. This segment operates 33 scrap metal processing facilities with 16 locations in Texas, eight in Florida, two locations in Missouri and one location in each of Arkansas, Georgia, Kansas, Louisiana, North Carolina, Oklahoma and Tennessee. The Company purchases ferrous and nonferrous scrap metals, processed and unprocessed, from a range of sources in a range of forms for its metals recycling plants. Sources of metal for recycling include manufacturing and industrial plants, metal fabrication plants, electric utilities, machine shops, factories, railroads, refineries, shipyards, ordinance depots, demolition businesses, automobile salvage firms and wrecking firms.
The Company's scrap metal recycling plants typically consist of an o! ffice and warehouse building equipped with specialized equipment for processing both ferrous and nonferrous metal located on several acres of land that the Company uses for receiving, sorting, processing and storing metals. Several of the Company's scrap metal recycling plants use a small portion of their site or a nearby location to display and sell metal products that may be reused for their original purpose without further processing. Americas Recycling operates five shredding machines, three in Texas, one in Florida, and one in Oklahoma capable of pulverizing obsolete automobiles or other sources of scrap metal. The Company sells scrap metals to steel mills and foundries , aluminum sheets and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers and other consumers.
Americas Mills
The Americas Mills segment includes the Company's domestic steel mills, including scrap metal shredders and processing facilities that directly support these mills and the domestic copper tube minimill. The Company conducts its Americas Mills operations through a network, which includes five steel mills, commonly referred to as minimills, that produce one or more of reinforcing bar, angles, flats, rounds, small beams, fence-post sections and other shapes; two scrap metal shredders and processing facilities that directly support the steel minimills, and The Company operates five steel minimills, which are located in Texas, Alabama, South Carolina, Arizona and Arkansas.
The Company's Texas minimill manufactures a line of bar size products, including reinforcing bar, angles, rounds, channels, flats, and special sections used primarily in building highways, reinforcing concrete structures and manufacturing. It sells primarily to the construction, service center, energy, petrochemical, and original equipment manufacturing industries. The Company's South Carolina minimill manufac! tures a l! ine of bar size products, which primarily includes steel reinforcing bar. The minimill also manufactures angles, rounds, squares, fence post sections and flats. The South Carolina minimill ships its products to customers located in the Southeast and mid-Atlantic regions, which include the states from Florida through southern New England.
Americas Fabrication
The Americas Fabrication segment consists of the Company's rebar fabrication operations, fence post manufacturing plants and construction-related and other product facilities. The Company conducts its Americas Fabrication operations through a network include steel plants that bend, cut, weld and fabricate steel, primarily reinforcing bar; warehouses that sell or rent products for the installation of concrete; plants that produce steel fence posts, and plants that heat-treat steel to strengthen and provide flexibility. The Company's Americas Fabrication segment operates 49 facilities that the Company considers to be engaged in the various aspects of steel fabrication.
The Company conducts steel fabrication activities in 16 locations in Texas, five each in California and South Carolina, three in Florida, two each in Arkansas, Colorado, Illinois, Louisiana, Mississippi, North Carolina, and Virginia, and one each in Arizona, Georgia, Nevada, New Mexico, Tennessee and Utah. Fabricated steel products are used primarily in the construction of commercial and non-commercial buildings, hospitals, convention centers, industrial plants, power plants, highways, bridges, arenas, stadiums, and dams. Generally, the Company sells fabricated steel in response to a bid solicitation from a construction contractor or the project owner. The Company sells and rent construction related products and equipment to concrete installers and other construction businesses.
The Company has 23 locations in Texas, Louisiana, Mississippi, and Oklahoma, where the Company store and sell these products which, with the exception of a s! mall port! ion of steel products, are purchased from third-party suppliers. The Company operates plants in Chicora, Pennsylvania, Struthers, Ohio and Pell City, Alabama which manufactures armor plate for military vehicles, high strength bar for the truck trailer industry and special bar quality steel for the energy market.
International Mill
The Company's International Mill segment includes the Company's minimill and recycling operations in Poland and its fabrication operations. The Company's subsidiary, CMC Zawiercie S.A. (CMCZ), owns a steel minimill and conducts its operations at Zawiercie, Poland. CMCZ, along with the Company's international recycling and fabrication operations, constitute the International Mill segment. CMCZ operates equipment similar to the Company's domestic steel minimills. The Company operates three rolling mills, one wire-rod mill and two bar mills including a specialty rod finishing mill. In addition, the Company operates a fabrication facility in Dabrowa Gornicza, Poland, that produces welded steel mesh, cold rolled wire rod and cold rolled reinforcing bar.
International Marketing and Distribution
International Marketing and Distribution includes international operations for the sales, distribution and processing of steel products, ferrous and nonferrous metals and other industrial products. In addition, the Company's International Marketing and Distribution segment includes the Company's United States based trading and distribution divisions, CMC Cometals and CMC Cometals Steel. The Company's International Marketing and Distribution business buys and sells primary and secondary metals, fabricated metals, semi-finished, long, flat steel products and other industrial products. The Company sells its products to customers, primarily manufacturers, in the steel, nonferrous metals, metal fabrication, chemical, refractory, construction and transportation businesses. This segment also operates a recycling facility in Singapore.
Advisors' Opinion:- [By John Kell and Lauren Pollock var popups = dojo.query(".socialByline .popC"); ]
Commercial Metals Co.(CMC) said its fiscal second-quarter earnings surged as results in the steelmaker and recycler’s international mills business offset impacts from rising materials costs at its Americas units. Results missed expectations, but shares edged up 2.6% to $19.43 premarket.
- [By Monica Gerson]
Commercial Metals Company (NYSE: CMC) is estimated to report its Q3 earnings at $0.29 per share on revenue of $1.85 billion.
Finish Line (NASDAQ: FINL) is projected to report its Q1 earnings at $0.21 per share on revenue of $394.47 million.
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