2/21/2014

Warren Buffett on using leverage to invest

Warren Buffett has been investing in the stock market for more than 70 years. At only 11 years old, he made his first equity purchase — three shares of Cities Service Preferred. He sold early and made a small profit, but ultimately learned a lesson about patience as shares soared higher. Over the decades, Buffett has passed on a vast amount of wisdom to investors.

One lesson investors should heed from the Oracle of Omaha involves leverage.

"When leverage works, it magnifies your gains. Your spouse thinks you're clever, and your neighbors get envious," explained Buffett in his 2010 shareholder letter. "But leverage is addictive. Once having profited from its wonders, very few people retreat to more conservative practices. And as we all learned in third grade — and some relearned in 2008 — any series of positive numbers, however impressive the numbers may be, evaporates when multiplied by a single zero. History tells us that leverage all too often produces zeroes, even when it is employed by very smart people."

Buffett was primarily discussing leverage in relation to personal debt, but the same principles apply to leveraged exchange-traded funds — a relatively new financial product. Leveraged ETFs are like regular ETFs laced with greed and impatience. They attempt to deliver multiples of the performance of an underlying index or benchmark they track. Some track broad indices, while others track specific sectors or commodities. Leveraged ETFs seek to magnify returns by using some of Wall Street's favorite financial drugs: derivatives, futures contracts, and swaps.

Although leveraged ETFs can serve a meaningful purpose to day traders, longer-term investors should steer clear. For example, let's say an index starts with a value of 100, while a leveraged ETF that seeks to double its return starts at $100. If the index drops by 10 points on Day One, its value declines by 10%, to 90 points. In theory, the leveraged ETF would therefore plunge 20% on that day, with the index's drop ! magnified two-fold, and have an ending value of $80. On Day Two, if the index rebounds 10%, the index value increases to 99. For the leveraged ETF, its value on Day Two would also increase by 20%, but that 20% increase, from $80, would be to just $96.

The leveraged ETF accomplished its goal on a daily basis, but failed to keep pace over the two-day period. This gap can grow significantly for buy-and-hold investors, and be deadly in volatile markets. It's even possible that investors could suffer significant losses while the long-term performance of the underlying index shows a gain.

The dangers of leveraged ETFs have been highlighted in recent years, but brokers and investors are still learning the hard way. The Financial Industry Regulatory Authority recently ordered Stifel Nicolaus and Century Securities to pay fines and restitution totaling more than $1 million for unsuitable sales of leveraged and inverse ETFs. Sixty-five customers were involved between the two St. Louis-based broker-dealers.

Brad Bennett, FINRA Executive Vice President and Chief of Enforcement, explained, "The complexity of leveraged and inverse exchange-traded products makes it essential for securities firms and their representatives to understand these products before recommending them to their customers. Firms must also conduct reasonable due diligence on these and other complex products, sufficiently train their sales force and have adequate supervisory systems in place before offering them to retail investors."

FINRA found that between January 2009 and June 2013, Stifel and Century made inappropriate recommendations of non-traditional ETFs to certain customers because some representatives did not fully understand the unique features and specific risks associated with leveraged and inverse ETFs. Customers with conservative investment objectives suffered the worst and experienced net losses.

Before investing in a leveraged ETF, you should strongly consider what can happen if you hold shares for long! er than o! ne day, and whether the extra risks fit with your financial goals. Leveraged ETFs can also come with higher fees than traditional ETFs.

Everybody wants a shortcut to build wealth, but it even took Warren Buffett decades to accumulate his impressive investing status.

MORE: The Millionaire's Club -- Congress loves these 10 stocks

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MORE: How Warren Buffett dealt with a billion-dollar mistake

Wall St. Cheat Sheet is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

MeetMe: Right Stock, Wrong Time (MEET)

With today's 15% pop just staring you in the face, it would be tempting for current MeetMe Inc. (NYSEMKT:MEET) shareholders to lock their profit in and walk away. It would also be a mistake, though. See, while MEET is admittedly a volatile mess in the short run, for the long haul, there's a lot more upside left to tap.

If the idea and the ticker seem familiar, it may be because yours truly penned some bullish thoughts on MEET back on February 7th.... and October 29th, and October 23rd, and October 18th, and July 18th, and July 8th.... you get the idea. And, while it's been an exhausting journey with lots and twists and turns, MeetMe Inc. shares are now up 60% since my love affair with the stock began back in the middle of last year.

I don't come here to gloat, however. I'm revisiting MeetMe again today to reiterate a point I've made about it several times since starting to log the saga - there's a ton of upside potential here, that could last for months, and end up creating strong triple-digit gains. You just have to take a step back and look at a long-term, weekly chart of MEET to see it. So, that's what we'll do.

There are two things to note about this longer-term chart: (1) Although it's been up-and-down for years, as of the past few months, there's more 'up' than 'down' for MEET now [see the rising MACD lines, both now above the zero level], and, (2) there's plenty of volume behind the current bullishness from MeetMe, telling us it's got the participation it needs to last [one of the missing ingredients of the prior breakout attempts].

Between those two nuances and the fact that this stock was trading at $10.00 just a few years ago, there's a ton of room to recover here... and MeetMe Inc. is acting like it wants to use all of that potential.

With all of that being said, as bullish as MEET may be in the long run, today isn't the time to step into a new trade. Between this morning's opening gap and the stock's usual ebb and flow, odds are good that MeetMe shares could pull back to the $2.50-ish level again sooner than later. That's the spot where you'd want to wade into this impressive but admittedly volatile long-term uptrend.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.

2/20/2014

Conn's Down 32% After 4Q Preliminary Results and 2015 Guidance

Related CONN Mid-Day Market Update: Tesla Surges On Upbeat Results; Conns Shares Drop Top Trending Tickers On StockTwits For February 20

Conn's (NASDAQ: CONN) is trading down 32 percent Thursday after releasing its 4Q14 results and also provided earning guidance for 2015.

The report highlighted same-store sales jumping 33.4 percent and preliminary retail segment net sales up 44.8 percent from last year's fourth quarter. However, fiscal 2015 guidance was revised to $3.40 - $3.70, down previously from $3.80 - $4.00 per diluted share. A contributing factor to the guidance includes bad debt from unexpected increase in delinquency rates between December and January and an underachieving increase in sales.

Theodore M. Wright, Conn's chairman and CEO commented on the negatives. "Credit segment performance did not keep pace and delinquency and charge-offs rose in December and January. Sales driven portfolio growth combined with seasonal portfolio increases placed pressure on our collections operation and execution deteriorated."

A couple downgrades have also been released in reaction to the movement. Stephens have downgraded CONN from Overweight to Equal-Weight. Oppenheimer downgraded CONN to Market Perform.

CONN closed Wednesday at $55.80 and opened Thursday $35.45, a plummet of 36 percent.

Posted-In: Analyst Color Earnings News Guidance Downgrades Markets Analyst Ratings

(c) 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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2/19/2014

PepsiCo: Cutting Costs and Investing in High-Growth Sectors

While competition has always been stiff in the beverage market for Pepsi, the pressure coming primarily from Coca Cola (KO), the company has managed to persist and expand into other markets that its competitors have little foothold in. Pepsi's fourth quarter report showed both success and disappointment but the company still has a strong foundation and solid business strategy suitably adapted for the changing markets.

Fourth quarter results and what's in store for the coming year

Pepsi released a mixed report for its fourth fiscal quarter of 2013. While the company's profits rose from $1.06 per share in 2012 to $1.12 per share this past year, its core earnings fell slightly at the same time. And although revenue rose by 3% in its snack and food division, revenue from beverages fell by 1.6%. All in all, the company did manage to surpass analyst's estimates but not by all that much and not in every area with which investors are concerned.

Despite mixed results at the end of 2013, investors can still expect to benefit from owning stock in Pepsi. After the release of its fourth quarter report, the company announced that it will boost payouts through a combined process of buying back shares and increasing dividends. Furthermore, with dividend yields already at 2.90% before the planned increase, it had already been inching toward the higher end of the spectrum in that regard.

Business strategies and legal issues

After Coca Cola's (KO) planned partnership with Green Mountain Coffee Roasters, Inc (GMCR), analysts speculated that Pepsi Co could make the smart and possibly necessary move to acquire SodaStream International, Ltd (SODA). SodaStream is the leading brand and innovator in the emerging market of home carbonation systems, a growing trend in the United States and abroad. The acquisition could benefit both companies as Pepsi would secure a foothold in this up-and-coming market while SodaStream would benefit from the financial backing required to grow and expand.

A potential minor setback could come in the form of a state tax on sodas being considered in Illinois. The tax is proposed as a health measure to decrease healthcare costs as well as discourage soda consumption. Should the penny per ounce tax be implemented, this could raise Pepsi's costs in that state, resulting in a further decline in revenue in its beverage division.

On the other hand, one state's soda tax will not have significant consequences for such a large company as Pepsi. Such an issue will only become of real concern in the event that the trend of taxing soda spreads to other states, increasing costs all across the board. While it is not a primary issue as of yet, this is a development to keep your eye on.

Pepsi has placed a lot of emphasis on increasing the efficiency and productivity of its operations over the past few years. Such improvements come as part of a plan to reduce costs by $1 billion per year. The plan was originally announced in 2012 and has so far stayed consistently on track. The company's primary strategy for accomplishing this is through automation of the production process in order to reduce labor costs.

Aside from improving its operations efficiency, another focus of Pepsi's business strategy will be in emerging markets. To date, about 30% of the company's revenue is already coming from emerging markets and analysts expect this figure to grow in the coming years. It's fastest growing division, for example, is its AMEA (Asia, Middle East, and Africa) division which had growth rate of 10% in 2012, vastly outperforming the company's overall growth rate of 5%.

In North America, it's most promising growth sector is its food and snack division. In recent years the company has made some major strides in its restaurant food offerings with good success. The growth we are seeing in this area is expected to continue into the future and will help to offset the declining profits from its beverage division.

Conclusions

PepsiCo will make a strong addition to your portfolio, particularly if you are looking for a longer-term investment. In the company's strongest areas, we can expect growth to persist for many years to come. Furthermore, with the company's prudent and effective strategy to lower operation costs, profit margins will continue to grow. The company also shows a commitment to its investors by consistently increasing dividends and its coming plan to buyback shares.

About the author:Muhammad BazilMuhammad Bazil is a financial journalist and editor for a variety of websites, public policy organizations, and book publishers. He has written hundreds of published articles and blog posts on topics including budgeting, credit management, real estate and investing. His articles have been featured on the homepage of Yahoo!, MSN and numerous local news websites.
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Mid-Day Market Update: US Stocks Turn Red; La-Z-Boy Declines On Downbeat Results

Related BZSUM Mid-Morning Market Update: Markets Mixed; Signet To Acquire Zale For $21/Share #PreMarket Primer: Wednesday, February 19: Tesla Earnings Expected Today

Midway through trading Wednesday, the Dow traded down 0.26 percent to 16,088.68 while the NASDAQ dropped 0.57 percent to 4,248.65. The S&P also fell, declining 0.32 percent to 1,834.87.

Leading and Lagging Sectors
In trading on Wednesday, energy shares were relative leaders, up on the day by about 0.69%. Meanwhile, top gainers in energy sector included Ocean Rig UDW (NASDAQ: ORIG), with shares up 5.6%, and Nabors Industries (NYSE: NBR), with shares up 10.7%. Shares of Nabors jumped after the company reported fourth-quarter results.

Telecommunications services sector was the leading decliner in the US market today. Telecommunications services stocks dropped 0.43% in today's trading. Among the stocks, Mobile Telesystems OJSC (NYSE: MBT) was down more than 4.8%, while Telecom Argentina SA (NYSE: TEO) tumbled around 2.5%.

Top Headline
Signet Jewelers (NYSE: SIG) announced its plans to buy Zale (NYSE: ZLC) for around $690 million. Signet will pay $21 per share to acquire Zale, representing a 41% premium to Zale's closing price of $14.91 on Tuesday.

Equities Trading UP
Zale (NYSE: ZLC) shot up 40.11 percent to $20.89 after Signet Jewelers (NYSE: SIG) announced its plans to buy Zale for around $690 million.

Shares of Garmin (NASDAQ: GRMN) got a boost, shooting up 8.54 percent to $51.20 after the company reported upbeat fourth-quarter earnings.

Signet Jewelers (NYSE: SIG) was also up, gaining 16.93 percent to $92.69 after the company announced its plans to acquire Zale for $21.00 per share.

Equities Trading DOWN

Shares of SM Energy Company (NYSE: SM) were down 17.47 percent to $73.93 after the company reported downbeat quarterly earnings. KeyBanc downgraded the stock from Buy to Hold.

Potbelly (NASDAQ: PBPB) shares tumbled 10.58 percent to $20.03 after the company reported its fourth quarter results. Bank of America cut the price target on the stock from $33.00 to $27.00.

La-Z-Boy (NYSE: LZB) was down, falling 4.43 percent to $25.91 on weaker-than-expected fiscal third-quarter results.

Commodities
In commodity news, oil traded up 0.29 percent to $102.73, while gold traded down 0.34 percent to $1,319.90.

Silver traded down 0.22 percent Wednesday to $21.85, while copper rose 0.08 percent to $3.29.

Eurozone

European shares were mostly higher today.

The Spanish Ibex Index rose 0.11 percent, while Italy's FTSE MIB Index declined 0.20 percent. Meanwhile, the German DAX rose 0.01 percent and the French CAC 40 climbed 0.24 percent while U.K. shares gained 0.01 percent.

Economics
The MBA reported that its index of mortgage application activity declined 4.1% in the week ended February 14.

The ICSC/Goldman Sachs Retail Chain Store Sales Index rose 2.5% in the week ended Saturday.

Construction on new homes declined 16% to an annual rate of 880,000 in in January. However, economists were expecting a rate of 945,000 in January.

US producer prices increased 0.2% in January, versus economists' expectations for a 0.1% rise.

The Johnson Redbook Retail Sales Index fell 1.2% in the first two weeks of February.

The Federal Open Market Committee will issue minutes of its latest meeting at 2:00 p.m. ET.

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

(c) 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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How Google Impacts the Premium Smartphone Market

According to the Wall Street Journal, Google (NASDAQ: GOOG  ) recently  cut prices on its flagship MotoX to $399. The question investors should ask is, what affect will this have on the smartphone business?

Wood behind the arrow 
The MotoX is sold only in North and South America and, by volume, sells far fewer units than either Samsung (NASDAQOTH: SSNLF  )  or Apple (NASDAQ: AAPL  ) . In fact, as of mid-November, MotoX stood at a disappointing 500,000 . This number pales to Apple's 33.8 million iPhone's sold last quarter, so why would the company think cutting the price of a poorly selling smartphone could have a potentially dramatic impact on the world's most enviable smartphone makers, Apple and Samsung?

First, Google's has spent a considerable sum to market the MotoX. Google has the ability to put a lot of wood behind this arrow, and has chosen to do so. Furthermore, while there is no doubt that Google would have loved to sell 30 million MotoX units at premium prices, it suits Google's long-term interests to forego margins and near-term profits in exchange for market share. Why?

Ecosystem
Google doesn't necessarily need to make money on its hardware. Google is content to get users into its Android ecosystem, where the company will reap increasingly valuable data that helps support the moat around its search engine as it learns the preferences of individual users.

How important is this data to Google? To paraphrase a Google exec, "We don't necessarily have the best algorithms, we simply have the most data." This statement explains the fruit Google derives from giving away software for free. That's in addition to getting users in the habit of using apps like Gmail and Maps, and eventually Google docs, as its assault on Microsoft Windows and Office continues.

Carriers subsidies ending?
The perception is that, in terms of quality, the iPhone and Samsung Galaxy are the best phones on the market. As carriers have traditionally subsidized phone upgrades every two years, it made sense for consumers to do so only when they became eligible.

Enter T-Mobile, which announced that it would offer no subsidies, instead making the cost of your monthly plan cheaper. Where before, most of the newer phones cost consumers (a subsidized) $200 at most, it was a no-brainer to choose whatever was perceived to be the best phone available, when in fact the "subsidy" is priced into mobile contracts.

Last quarter, only 21% of smartphones sold by T-Mobile were iPhones. In contrast, 51% of Verizon's smartphone activations were Apple devices. While part of the explanation for this is that T-Mobile got the iPhone long after the other carriers, and therefore already has an entrenched Android user base, there is no doubt that price sensitivity exists when consumers must foot the whole bill for a new phone.

With rumblings of ending subsidies at both AT&T and Verizon, this suddenly makes a lower-priced flagship phone like the MotoX much more attractive.

Cutthroat 
This will undoubtedly negatively impact sales for both Samsung and Apple. Google can, and will, operate at much lower margins in exchange for data and extra sales via their ecosystem.

More negativity
Google will have a more dramatic impact on Samsung sales. Google bought Motorola not only for its patents, but also to obtain more competitive leverage over Samsung, which was believed to be wielding too much power as the dominant profit-maker from Android phones.

Further, there will always be die-hard Apple loyalists who demand the Apple experience. However, Apple refuses to license iOS to other handset manufacturers. One Apple product begets another, as they function seamlessly and in unison. Customer satisfaction scores are off the charts.

The Android experience on a Samsung is largely the same  as other phones, less the poorly functioning bloat-ware Samsung adds to its phones. As the MotoX catches up in specs and added capabilities, there becomes little reason to pay substantially higher prices for a Galaxy.

Bottom line
Google's foray into producing and marketing proprietary hardware, then selling those devices for much lower margins, combined with the possibility of carrier subsidies disappearing could have a significantly greater negative impact for Samsung than for Apple.

Samsung, despite its enormous resources, will probably not be successful in developing its own ecosystem, as the company is simply light years behind both Apple and Google, and even Microsoft. I remain bullish on Google, although its P/E of 30 is a bit rich for a normal company, its search engine is as wide as can be, and it funds its moonshot projects (driver-less cars, robotics, etc.), which may end up revolutionizing the world.

Profiting from the next technology revolution
There are few things that Bill Gates fears. Cloud computing is one of them. It's a radical shift in technology that has early investors getting filthy rich, and we want you to join them. That's why we are highlighting three companies that could make investors like you rich. You've likely only heard of one of them, so be sure to click here to watch this shocking video presentation!

2/18/2014

Pfizer: A Pharmaceutical Favorite

Pharmaceutical stocks have traditionally been considered logical choices for dividend stocks; here, we look at one of the blue chips of the pharmaceutical world, selling at discounts to historical valuations, explains John Dobosz, editor of Forbes Dividend Investor.

New York-based Pfizer (PFE) is one of the world's largest biopharmaceutical companies that discovers, develops, manufactures, and sells medicines for humans and animals.

Celebrex, for treating arthritis, and Viagra, for erectile dysfunction, are two of Pfizer's best selling drugs. Other products are targeted at Alzheimer's disease, cardiovascular issues, depression, pain, respiratory ailments, and smoking cessation.

As blockbuster drugs lose patent protection, Pfizer must find new sources of growth to make up for the lower sales. What's encouraging is recent news from Merck (MRK) that it was working with Pfizer to develop new cancer drugs.

Revenue for 2014 is expected to dip 3% to $49.9 billion, with earnings inching higher by 2.3% to $2.27 per share. Earnings are expected to grow 12.9% for the year that just ended, with revenue up 15.7%.

Pfizer started trading ex-dividend for the upcoming $0.26 quarterly dividend. That amount is up $0.02, or 8.3%, from the quarterly payout last year.

Pfizer slashed the dividend by 50% in 2009, but it has hiked the quarterly amount by $0.02 every year since then and amount to 46% of forecasted 2014 EPS. Dividends have been paid without interruption since 1982.

Shares of Pfizer trade at a 15% discount to their five-year average price-earnings multiple of 15.8. Multiplying that average P/E by $2.37 in EPS produces a $37.50 stock price. Pfizer's discount to its three-year average price-sales ratio is 13.6%.

Subscribe to Forbes Dividend Investor here…

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2/17/2014

More Small Cap Marijuana Stocks Join the Party: PMCM, MFST & MDRM

The marijuana field keeps sprouting small cap marijuana stocks like Primco Management Inc (OTCBB: PMCM), Medifirst Solutions Inc (OTCMKTS: MFST) and Modern Mobility Aids, Inc (OTCMKTS: MDRM) which are all trying to seek a high by playing up their connections (no matter how tenuous…) to what many consider to be the next high flying sector. But are these small cap marijuana stocks just blowing smoke at investors? Here is a quick reality check:

Primco Management Inc (OTCBB: PMCM) Aims for a High in Medical Marijuana Real Estate

Small cap Primco Management operates as an integrated entertainment company with divisions in music and film production and distribution. Primco Management also operates in various aspects of the real estate industry. On Friday, Primco Management surged 63.64% to $0.0018 for a market cap of $1.32 million plus PMCM is down 96.4% over the past year and down 82% over the past five years according to Google Finance.

z?s=PMCM&t=2y&q=&l=&z=l&a=v&p=s&lang=en-

What's the Catch With Primco Management Inc? According to various disclosures, at least one promoter had previously in the past been compensated $12.5k to mention Primco Management in various investment newsletters. Last Friday, Primco Management announced that the company had signed a conditional lease for the launch of its first medical cannabis cultivation center with plans calling for the subdivision of the property into up to 6 separate nurseries to be sublet to fully licensed dispensaries in Los Angeles. Final execution of the lease will be contingent upon acquiring permits from the local municipality. In addition and last Wednesday, Primco Management issued a short press release to talk up its plans to acquire properties to then be leased to licensed retailers and manufacturers of medical marijuana while in mid January, the company provided a an update to its shareholders and strategic business partners that did not mention anything about the medical marijuana business. A quick look at Primco Management's financials reveals revenues of $11k (most recent reported quarter), $4k, zero and zero for the past four reported quarters and net losses of $1,654k (most recent reported quarter), $918k, $83k and $10k. At the end of September, Primco Management had $115k in cash to cover $3,486k in current liabilities. So it remains to be seen whether getting into marijuana can help heal the company's income statement and balance sheet.

Medifirst Solutions Inc (OTCMKTS: MFST) Tries Hard to Push the Medical Marijuana Focus

Small cap Medifirst Solutions seeks innovative medical and healthcare products and technologies which are targeted to both medical and healthcare professionals as well as everyday consumers. On Friday, Medifirst Solutions sank 24.1% to $0.110 for a market cap of $1.46 million plus MFST is down 77.5% over the past year and down 26.7% since September 2012 according to Google Finance.

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What's the Catch With Medifirst Solutions Inc? According to various disclosures, a transaction or transactions of $2.5k has or will occur to mention Medifirst Solutions in various investment newsletters. Last Friday, Medifirst Solutions announced that it had acquired Consumer Resources Consultants Inc., a Florida based company that provides online remote technical support to PC users. Although unrelated to the announcement, the press release did try to tie the news back to medical marijuana with the folowing paragraph:


New Markets and Growth States with legalized marijuana is a business sector in which Medifirst plans for further diversification and growth. As recently announced in Florida, a constitutional amendment was approved that would legalize marijuana for medical use, guaranteeing the measure a spot on the state's November ballot. Considering Medifirst's strong company presence in Florida, it will begin to pinpoint an entry strategy for this young multibillion dollar industry. Medifirst anticipates to be able to develop that strategy to expand to all states where marijuana is legal."

Last Monday, Medifirst Solutions announced that it will be an Exhibitor at the International Esthetics, Cosmetics & Spa Conferences held March 9th to 11th at the Jacob K. Javits Convention Center in New York City while in early December, the company announced the appointment of Dr. Ron Rubin as the Medical Director for its Boca Medical Spa in Boca Raton, Florida. A quick look at Medifirst Solutions' financials reveals revenues of $20k (most recent reported quarter), $5k, $25k and zero for the past four quarters along with net losses of $21k (most recent reported quarter), $39k, $10k and $115k. At the end of September, Medifirst Solutions had no cash to cover $233k in current liabilities. But at least Medifirst Solutions is trying hard to find a connection with the growing marijuana industry.

Modern Mobility Aids, Inc (OTCMKTS: MDRM) Has Just Entered the Marijuana Sector

Small cap Modern Mobility Aids now has a focus on the production of Medical Marijuana as a mandate was created to acquire companies within the biopharma and alternative medicine sectors targeting both innovative research and development as well as scalable licensed, manufacturing capacity in three niche market segments. On Friday, Modern Mobility Aids surged 22.83% to $0.0425 for a market cap of $6.84 million plus MDRM is up 750% over the past year and down 96.6% since June 2011 in intermittent trading according to Google Finance.

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What's the Catch With Modern Mobility Aids, Inc? According to various disclosures, no transactions have occurred to mention Modern Mobility Aids in various investment newsletters. Last Wednesday, Modern Mobility Aids announced that it had appointed Mr. Samuel Hill (who is Managing Director at Goldbear Capital, a boutique mergers and acquisitions firm that focuses on raising capital for growing companies through private placements and public offerings) as a Director and CEO and Mr. Declan French as Director and Chairman of the board. However, it should be noted that the Company changed its name to Modern Mobility Aids, Inc. on April 22, 2010 with initial plans to distribute products for mobility-challenged individuals; but this month the business focus of the company "evolved with a rapid expansion strategy" in the life sciences and healthcare industry and a focus on the production of Medical Marijuana. That could be good news for investors as Modern Mobility Aids has produced no revenues; net losses of $3k (most recent reported quarter), $183k, zero and $53k for the past four reported quarters; and no cash to cover $479k in current liabilities at the end of last March. So investors might want to wait for the financials to get updated and see just what the company intends to do in the marijuana sector.

2/14/2014

Betting on a Turn

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The iShares MSCI Emerging Markets Index (NYSE: EEM) seems to have halted its slide.  The index bottomed out year-to-date on February 3, when it was down 11.2 percent. Since then, it has gained 1.5 percent, but bargains in the emerging markets still abound.

As I discussed in "A Plan, Not a Panic" two weeks ago, emerging markets are in much better economic shape today than they were even just a few years ago, much less during the currency crisis that peaked in 1998. Foreign exchange reserves are generally much more robust, budget deficits are narrower if they exist at all and, so far at least, the full-blown currency war that many were predicting last year isn't likely to breakout.

With rationality finally setting in, this is a terrific time to do a little bargain hunting in the emerging markets.

The most obvious play here is the iShares MSCI Emerging Markets Index itself. Covering China (18.8 percent of assets), South Korea (16 percent), Taiwan (12 percent) and Brazil (10.2 percent) with smaller positions spanning Asia and Europe, the fund is most exposed to any shift in sentiment.

The fund is currently trading at just 10.2 times forward one-year earnings, well below its average of about 18 times over the past two decades. On a price-to-sales basis it is even more attractive valued at just 1.03 times; the last time the index was this cheap on a sales basis was early 2009.

So while there are always dangers in trying to call a bottom to any market move, valuations alone are attractive enough to start pulling bargain hunters back in.

A broadly diversified play on an emerging market turnaround, iShares MSCI Emerging Markets Index is a great buy up to 45, which leaves plenty of room to run back to the average.

For those who can tolerate a bit more risk, you can also drill down and make more country-specific bets.

At this point my favorite would be iShares MSCI Sout! h Korea Index Fund (NYSE: EWY).

South Korea is something of a special case; despite having a highly developed economy, it is still lumped in with emerging markets.

South Korea's per capital income last year totaled more than USD33,000, well ahead of Spain and Italy and closing the gap between France and Japan. The South Korean economy is also the 15th largest in the world, boasts low unemployment and almost nonexistent inflation and ranks 7th in the World Bank's Ease of Doing Business Index.

That said, South Korea still uses capital controls to help protect its won. There is limited currency convertibility outside the country, essentially forcing traders to use Korean institutions. There are also some limits on foreign access to Korean equity markets, essentially making it more difficult to move money out of the country.

Because of those restrictions, MSCI (NYSE: MSCI), the company which is the primary arbiter of what is and isn't an emerging market, still lumps South Korea in with the emerging markets. That creates an advantage for market watchers, though.

Since South Korea is included in almost every emerging market index, any time those countries take a hit South Korea falls with them. But given the fact that it has more developed market characteristics than not, it's also usually one of the first to turn.

So far in February, there are early signs of improvement as iShares MSCI South Korea Index Fund has crossed both its 10-day and 200-day moving averages. Its relative strength index reading has also closed in on its average reading, all of which point to the fund's turn gaining momentum.

IShares MSCI South Korea Index Fund is a riskier bet on a turn, but it should pay off up to 63.

2/11/2014

Is Flappy Bird Creator Dong Nguyen a Marketing Genius?

Dong Nguyen ruined my weekend.

All it took was a tweet, and a few hours later I looked up from my iPhone, nearly late for a Saturday evening engagement. I lost countless hours on Sunday tapping my screen aiming a bird through Nintendo-esque pipes. Yes, I had succumbed to Flappy Bird.

If I hadn't learned that the app would be pulled from the Apple (NASDAQ: AAPL  ) App Store and Google's (NASDAQ: GOOG  ) Play Store, I probably never would have downloaded it. The game is not even that good, but fear of missing out on something has driven me to do more than click a couple buttons.

And it's this fear of missing out, now more than ever in the age of social sharing on Twitter (NYSE: TWTR  ) and Facebook (NASDAQ: FB  ) , that makes Dong Nguyen, the creator of Flappy Bird, a marketing genius.


It's Game Over for Flappy Bird. Source: Flappy Bird Screenshot

Available for a limited time only!
You don't have to reinvent the wheel to be a great marketer.

I get emails all the time mentioning 24-hour sales. Disney is famous for putting its classic movies into "The Disney Vault" only to release them for a limited time. Countless advertisements on the Internet promote their product by limiting the number of spots or copies available (or at least saying it's limited). They all rely on the principle of scarcity, which can influence a person to make a hasty purchase without fully considering it.

But Nguyen's genius is that he waited for the popularity of one of his games to reach a critical mass. When he announced that Flappy Bird would be removed from the app store, the game was already the most downloaded in the App Store and on Google Play. The game grew in popularity after fans' frustration with the game led to viral tweets, YouTube videos, and posts of user reviews all around the Internet.

Then the announcement came that he would remove the app, and Twitter and Facebook lit up with his fans commenting and telling friends to get it before it's gone. The time and money spent on this "campaign" was practically nothing.

Nguyen's Twitter followers increased from about 15,000 on Friday to 134,000 today. Downloads of Flappy Bird surely spiked as well, and the game creator's $50,000 in revenue per day probably jumped as well. And just because Flappy Bird was removed from the app store doesn't mean those in-game ads aren't generating Nguyen boatloads of cash.

'And I still make games'
At the time of this writing, those were the last word Nguyen had tweeted. It serves as a reminder that he has other projects that may be worth checking out. Indeed, the success of Flappy Bird sent his other games, Super Ball Juggling and Shuriken Block, soaring up the App Store ranks as well.


Super Ball Juggling is just as difficult as Flappy Bird. Source: Super Ball Juggling Screenshot

Perhaps those that missed out on Flappy Bird will go out to find his other games. Currently, Super Ball Juggling sits at No. 6 on the list of free iPhone apps, and Shuriken Block is No. 17.

And although Nguyen wants to stay out of the limelight, it's very likely that his next game will receive a ton of media attention.

One tweet
Maybe I'm making too much of this one series of tweets. Regardless, the events of the past weekend show the power of Twitter and Facebook as marketing platforms. Nguyen certainly got lucky by making a game that spawned viral content, but he definitely added fuel to the fire when he announced the shutdown of the app at the height of its popularity.

Nguyen's success is also a testament to the value of Apple's and Google's platforms for gaming companies and developers. No other platform is nearly as widespread as iOS and Android. This kind of viral success and sudden grounding could only be accomplished through smartphones and tablets.

Kudos to Dong Nguyen on capitalizing on his sudden success. I'm waiting for your next frustratingly difficult game. Until then, I'll have to die a few thousand times in Flappy Bird.

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2/09/2014

WSJ overhauls its website's tech news page

The Wall Street Journal said Wednesday it has overhauled the technology news page on its website, WSJ.com, a move to expand coverage of the popular topic and replace another company-owned tech news site that is now defunct.

The site, dubbed "WSJD" by the newspaper, features breaking news, enterprise stories and video that are created by staffers from Silicon Valley and other bureaus worldwide. Many of its stories are available only to paid subscribers.

Dow Jones, a News Corp. subsidiary that owns the Wall Street Journal, initially announced plans to upgrade technology coverage in September after it failed to agree on a new contract with the founders of its other technology news site, AllThingsD.com. The contract expired at the end of 2013. It said then that it planned to hire 20 reviewers, bloggers, visual journalists, editors and reporters for the new venture.

As of Wednesday, online traffic to AllThingsD.com, which was free and widely read in Silicon Valley, was steered to WSJ.com's revamped technology page.

Meanwhile, AllThingsD founders - Walt Mossberg, a veteran WSJ journalist and chief technology device reviewer who left the paper at the end of 2013; and Kara Swisher, a former WSJ reporter – plan to launch a competing site, Recode.net, on Jan. 2. "While we think tech news is important, it's a better day to refresh, reimagine, reinvent and, most of all, rest," wrote Swisher and Mossberg on the site.

AllThingsD was launched in 2007 as an extension of The Wall Street Journal's D: All Things Digital conference that debuted four years earlier.

To diversify revenue sources, the Wall Street Journal is expanding its technology-related conference business, using the new WSJD brand. The first conference is scheduled for October 2014.

Mossberg and Swisher also said previously that they plan to launch a conference business under their new corporate structure.

Why Startups Seeking Funding Should Use Content To Build Their Credibility

Today, venture capital (VC) is more democratic than ever. Investors are becoming increasingly sophisticated, and geography is no longer a constricting factor.

Lower barriers, however, create stricter filters. With so many startups jockeying for funding, the Internet also enables investors to make snap judgments. Therefore, if you're looking for funding, you can be sure that your online presence will be the subject of intense scrutiny.

What do investors want to see? According to Edith Yeung, founding partner at RightVentures, there are two main criteria: the passion of the entrepreneur and the potential of the startup.

What better way to convey passion and potential than with well-crafted content? Yeung says that, with strong content, you can "take a stand publicly…addressing issues that [investors] care about in a timely manner."

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Establishing yourself as an industry thought leader gives you a competitive advantage in the fight for funding. Here's how you can use content to gain visibility, attract investors, and secure capital.

Start with Strategy

When your media presence is strategy-driven, you can shape the way funders perceive you.

Before you begin publishing content, ask yourself some basic questions about your brand. What sets you apart? What are the potential funding concerns?

Strive to create content that is inherently useful for investors — meaning it answers their questions. If they don't find it valuable, they'll never read it.

Fortify Your Presence with Credibility

"There is a common misconception between 'getting press' and being credible," says Rishi Roongta, a venture capitalist at Pritzker Group.

Ensure that every potential point of interaction with your brand showcases your dedication and credibility.

When investors Google you, they should find:

A solid, vibrant presence on all of your social media platforms. Whitepapers, case studies, and testimonials on your website. Articles you've published in a diverse set of publications.

Remember: Your email signature is a valuable tool to bring each of these together. Recently, I saw an email from Elite SEM, and their team uses each email to market its newsletter. I update my email signature to include my latest published article. This is valuable real estate. Don't waste it.

Deliver Content to Your Audience's Doorstep

Yes, getting published on Forbes and The Wall Street Journal does wonders for your overall credibility. But an article in a VC industry journal or publication establishes a direct line of communication between you and your ideal funder. Choosing the right publication can be as important as writing the right message.

Bet Against the Short Sellers in 2014?

Short sellers had a tough time in 2013. William Ackman’s bet again Herbalife (HLF), which has gained 139% this year, went horribly bad, while other heavily shorted stocks, including Supervalu (SVU) and Netflix (NFLX), have posted gains that make that look paltry.

Bloomberg News

In fact, though Dec. 6, betting for shares of the most heavily shorted stocks to rise more than the least-shorted stocks would have been a winning strategy in 2013, after two years of losses, according to JPMorgan. The most-shorted stocks rose 1.1 percentage points more than the S&P 500,  while the least-shorted stocks returned 0.4% less than the S&P 500.

JPMorgan’s Thomas Lee explains why the heavily shorted stocks outperformed in 2014. He writes:

The equity market broadened in 2013 (allowing more stocks to outperform), causing the short-selling win ratio to fall;

Anecdotally, we found many short ideas crowded, as evidenced by some stocks seeing a sizable portion of its float sold short.

And wouldn’t you know it, Lee expects the trend to continue in 2014. He took the most shorted stocks in S&P 500 with market cap’s of $3 billion or more that were also rated Overweight by JPMorgan analysts and had upside to their targets. His list includes refiner Tesoro (TSO), General Motors (GM) and Peabody Energy (BTU) among others.

Let the good times roll, except for the short sellers, that is.

Shares of Herbalife have gained 0.3% to $78.76 today, while Supervalu has risen 0.7% to $7.08, Netflix has dropped 0.2% to $377.50, Tesoro has advanced 0.3% to $58.41, General Motors has jumped 1.6% to $41.55 and Peabody Energy is up 0.7% at $18.65.

Corrections & Amplifications: This post originally stated the returns from the most- and least- shorted stocks as absolute values, rather than relative to the S&P 500.

2/08/2014

Shanghai stocks edge up in quiet holiday trading

HONG KONG (MarketWatch) -- Shanghai stocks edged up Wednesday in quiet trading, following overnight gains on Wall Street, while most other Asian markets were closed for the Christmas holiday. The benchmark Shanghai Composite Index (CN:SHCOMP) rose 0.1% to 2093.92 in the morning session. Shares of cement companies advanced as China plans to start construction of more than 6 million affordable homes in 2014, according to state media Xinhua News Agency on Tuesday. Huaxin Cement (CN:600801) rose 1.3%, and Jidong Cement (CN:000401) advanced 1%. Jiangxi Wannianqing Cement (CN:000789) gained 0.5%. China's largest appliance maker Qingdao Haier (CN:600690) fell 0.5%, showing little reaction to the news that China's Commerce Ministry just approved the deal for U.S. private-equity giant KKR (KKR) to buy a 10% stake in the company for approximately $556 million. The transaction is still pending approval by the China Securities Regulatory Commission. China Railway Construction (CN:601186) edged up by 0.2%, after it announced Tuesday that it has won a Wuhan subway contract worth 7.1 billion yuan ($1.1 billion).

2/07/2014

Top 5 Income Stocks To Buy For 2015

The halcyon days of the 1960s may be long gone but they aren't forgotten, at least not by me. It would be nice if we could have the kind of investment climate we had then. The political parties put country ahead of party. The Fed (astutely chaired by William McChesney Martin) cut interest rates in 1961 and sparked a recovery from the recession that began a few years earlier. There was good balance in the robust capital spending boom that ensued. The employment rate was high and discretionary income grew steadily. Inflation was modest. Interest rates were steady until the Fed increased them in 1969 because of inflationary pressures caused by heavy government borrowing needed to finance the Vietnam War.

In 1962, I could have hung the financial page on the wall of my office, thrown a dart, and picked a winner. As a securities analyst, I didn't do that (at least not when anybody was watching) when deciding which stocks I would recommend. Figuratively speaking, picking a winner was almost as easy as shooting a fish in a barrel.

Top 5 Income Stocks To Buy For 2015: The Navigators Group Inc.(NAVG)

The Navigators Group, Inc., together with its subsidiaries, engages in underwriting ocean marine, property and casualty, professional liability, and specialty insurance products and services. The company?s marine and inland marine insurance products include marine and energy liability, cargo, craft/fishing vessel, bluewater hull, brownwater hull, protection and indemnity, war, customs bonds, commercial output policy, construction, transportation, specialty, specie, and marine excess-of-loss reinsurance Its property and casualty insurance products comprise general and environmental liability, umbrella and excess, offshore energy, onshore energy, operational engineering, construction, life sciences, exporters package liability, accident and health reinsurance, Latin America property and casualty reinsurance, agriculture reinsurance, professional liability reinsurance, bloodstock, and the U.S. casualty insurance products. The company?s professional liability products inclu de directors and officers, employment practices, fiduciary, crime, accountants professional, lawyers professional, insurance agent errors and omissions, miscellaneous professional, technology and media, design professionals, and real estate agent liability insurance products. The Navigators Group, Inc. distributes its products through global, national, and regional retail and wholesale insurance brokers. The company was founded in 1981 and is based in Rye Brook, New York.

Advisors' Opinion:
  • [By CRWE]

    The Navigators Group, Inc. (NASDAQ:NAVG) reported that its principal underwriting agency subsidiary, Navigators Management Company, Inc., has expanded Adrien T. Robinson’s responsibilities to include the open-brokerage products of Life Sciences, Global Package, Environmental Casualty, Commercial Auto and Excess Casualty Retail. Mr. Robinson was previously President of the Environmental Casualty division.

Top 5 Income Stocks To Buy For 2015: Capital Bank Corporation(CBKN)

Capital Bank Corporation operates as the holding company for Capital Bank that provides general commercial banking products and services in North Carolina. Its deposit products include checking, savings, negotiable order of withdrawal, money market, and individual retirement accounts, as well as certificates of deposit. The company?s loan products portfolio comprises loans for real estate, construction, businesses, agriculture, personal use, home improvement, and automobiles, as well as equity lines of credit, mortgage loans, credit loans, consumer loans, and credit cards. It also offers safe deposit boxes, bank money orders, Internet banking services, traveler?s checks, and notary services, as well as electronic funds transfer services, including wire transfers and remote deposit capture. In addition, the company provides automated teller machine access to its customers; and a line of uninsured investment products and services. It operates 32 branch offices in North Carol ina, including 5 in Raleigh, 4 in Asheville, 4 in Fayetteville, 3 in Burlington, 3 in Sanford, 2 in Cary, and 1 each in Clayton, Graham, Hickory, Holly Springs, Mebane, Morrisville, Oxford, Pittsboro, Siler City, Wake Forest, and Zebulon. The company was founded in 1997 and is headquartered in Raleigh, North Carolina. Capital Bank Corporation is a subsidiary of North American Financial Holdings, Inc.

Hot Insurance Stocks To Buy Right Now: GeoEye Inc.(GEOY)

GeoEye, Inc., together with its subsidiaries, provides earth imagery and imagery information products, as well as image processing services to the United States and foreign government defense and intelligence organizations, domestic federal and foreign civil agencies, and commercial customers. It owns and operates two earth-imaging satellites, which include GeoEye-1 and IKONOS; and three airplanes with high-resolution imagery collection capabilities. The company?s satellite imagery products include Geo, GeoProfessional, and GeoStereo that provide the customers with time-critical visual imagery, data, and information. Its aerial imaging products consist of digital aerial imaging and light detection and ranging imaging (LiDAR). The company?s production services range from the generation of precision imagery products to the extraction of site-specific features for the company?s customer?s database development. These production services include Georectification, Tonal Correcti on, Image Mosaicing, and Orthorectification; and LiDAR elevation data, maps, topographic maps, digital orthophoto imagery, remote sensing services, and survey and inventory services, as well as geospatial information system, consulting, and implementation. The company serves customers in online mapping, geospatial information system, precision mapping, infrastructure, oil and gas, environmental monitoring, agriculture, mining, utilities, and transportation markets. It sells its products through direct and indirect sales channels, resellers, direct salespeople, strategic partners, and customer service and production services personnel. GeoEye, Inc. is based in Herndon, Virginia.

Top 5 Income Stocks To Buy For 2015: Asia Fashion Holdings Limited (GH3.SI)

Asia Fashion Holdings Limited, an investment holding company, engages in the production, dyeing, and post-processing treatment of synthetic knitted fabrics primarily in the People�s Republic of China. The company�s fabrics products are used in various products, including casual wear, sportswear, shoes, and bags. It serves sportswear and sport shoes producers, garment producers, and fabric trading companies. The company was formerly known as Qian Feng Fabric Tech Limited and changed its name to Asia Fashion Holdings Limited in May 2011. Asia Fashion Holdings Limited was incorporated in 2007 and is based in Fuqing, the People�s Republic of China. Asia Fashion Holdings Limited is a subsidiary of Qian Feng Group Limited.

Top 5 Income Stocks To Buy For 2015: Finisar Corporation(FNSR)

Finisar Corporation designs, develops, manufactures, and markets optical subsystems and components that are used to interconnect equipment in short-distance local area networks (LANs), storage area networks (SANs), longer distance metropolitan area networks (MANs), fiber-to-the-home networks, cable television networks, and wide area networks. Its optical subsystems primarily include transmitters, receivers, transceivers, and transponders. The company?s optical subsystems provides the fundamental optical-electrical interface for connecting the equipment used in building networks comprising switches, routers, and file servers in wireline networks, as well as antennas and base stations for wireless networks. It also offers products for switching network traffic from one optical wavelength to another across multiple wavelengths, known as reconfigurable optical add/drop multiplexers. The company?s line of optical components principally comprises packaged lasers and photodetec tors used in transceivers for LAN and SAN applications; and passive optical components used in building MANs. It sells its optical products to manufacturers of storage system, networking equipment, and telecommunication equipment or their contract manufacturers through direct sales force and distribution channels in the United States, Malaysia, the People?s Republic of China, and internationally. The company was founded in 1987 and is headquartered in Sunnyvale, California.

Advisors' Opinion:
  • [By Renu Singh]

    Finisar's (FNSR) datacom segment generated $184.4 million in revenue in the last reported quarter. This was a sequential growth of 9.3%. The Ten Gigabit Ethernet or 10GbE modules contributed about 40% to the datacom segment's revenue. As organizations go digital, there are an increasing number of applications that require considerable bandwidth to support the transfer of large data, video, and audio files across networks. Using 10GbE optical links provides sufficient bandwidth to support these bandwidth-intensive applications at a lower cost.

  • [By Rich Smith]

    JDS Uniphase stock is losing ground
    When you stack up JDS Uniphase stock up against two of its rivals�-- Cisco Systems (NASDAQ: CSCO  ) and Finisar (NASDAQ: FNSR  ) , some interesting dynamics become apparent. First and foremost, of the three, JDS Uniphase stock is the only one �that has no P/E ratio ... because it has no "E" -- earnings -- to weigh its "P" -- price -- against.

  • [By Paul McWilliams]

    Finisar (FNSR) is the world leader in the fiber optics markets it addresses, and, by far, the market share leader in enterprise fiber optics. While some investors have been led to believe silicon-photonics technology will soon disrupt FNSR's enterprise fiber optics business, I don't see that happening.

Top 5 Income Stocks To Buy For 2015: MHI Hospitality Corporation(MDH)

MHI Hospitality Corporation, a real estate investment trust (REIT), engages in the ownership and operation of upper upscale and midscale hotels in the mid-Atlantic and southeastern United States. As of March 15, 2006, the company operated seven upper upscale and midscale hotels with 1,673 rooms under the brand names ?Hilton? and ?Holiday Inn?. It also owns leasehold interests in the commercial spaces of the Shell Island Resort, a condominium resort property. The company has elected to be treated as a REIT for federal income tax purposes. As a REIT, it would not be subject to federal income tax, provided it distributes at least 90% of its taxable income to its shareholders. MHI Hospitality has strategic alliance agreement with MHI Hotels Services LLC. The company was founded in 1957 and is based in Williamsburg, Virginia.

Top 5 Income Stocks To Buy For 2015: Westaim Corp Com Npv (WED.TO)

The Westaim Corporation invests, directly and indirectly, through acquisitions, joint ventures, and other arrangements, with the objective of providing its shareholders with capital appreciation and real wealth preservation. Previously, the company, through its subsidiary, JEVCO Insurance Company, provided property and casualty insurance products in Canada. The company sold JEVCO Insurance to Intact Financial Corporation on September 5, 2012. The Westaim Corporation was founded in 1980 and is headquartered in Toronto, Canada.

Top 5 Income Stocks To Buy For 2015: Neurocrine Biosciences Inc.(NBIX)

Neurocrine Biosciences, Inc. engages in the discovery, development, and commercialization of drugs for the treatment of neurological and endocrine-related diseases and disorders in the United States. It develops drugs for endometriosis, stress-related disorders, pain, tardive dyskinesia, uterine fibroids, diabetes, insomnia, and other neurological and endocrine-related diseases and disorders. The company?s products in clinical development include Elagolix, a Phase II drug for endometriosis; Vesicular Monoamine Transporter 2 Inhibitor (VMAT2), a Phase II drug for movement disorders; CRF2 Peptide Agonist, a Phase II drug for cardiovascular diseases; CRF1 Antagonist, a Phase II drug for stress-related disorders; and Elagolix, a Phase II drug for uterine fibroids. Its research programs comprise G Protein-Coupled Receptor 119 (GPR119) for type II diabetes; VMAT2 for schizophrenia; GnRH Antagonists for men?s and women?s health, and oncology; Antiepileptic Drugs for epilepsy, essential tremor, and pain; and G Protein-Coupled Receptors for other conditions. The company has collaborations with GlaxoSmithKline to develop and commercialize CRF antagonists for psychiatric, neurological, and gastrointestinal diseases; Dainippon Sumitomo Pharma Co. Ltd. to develop and commercialize Indiplon in Japan; Abbott International Luxembourg S.�r.l. to develop and commercialize elagolix and GnRH antagonists for women?s and men?s health indications; and Boehringer Ingelheim International GmbH to research, develop, and commercialize small molecule GPR119 agonists for the treatment of type II diabetes and other indications. Neurocrine Biosciences, Inc. was founded in 1992 and is headquartered in San Diego, California.

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    Equities Trading UP
    Shares of Neurocrine Biosciences (NASDAQ: NBIX) got a boost, shooting up 57.43 percent to $15.37 after the company reported positive results of VMAT2 inhibitor NBI-98854 in Kinect 2 study.

Top 5 Income Stocks To Buy For 2015: Lam Research Corporation(LRCX)

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipments used in the fabrication of integrated circuits. The company offers etch products that remove portions of various films from the wafer in the creation of semiconductor devices. Its etch products include dielectric etch, conductor etch, three-dimensional integrated circuit etch, MEMS devices, CMOS image sensors, and power devices for etching process. Lam Research Corporation also provides wafer cleaning steps that comprise post-etch and post-strip cleans, and pre-diffusion and pre-deposition cleans; and single-wafer wet clean and plasma-based bevel clean systems. The company offers its products to semiconductor manufacturers. It operates in the United States, Europe, Taiwan, Korea, Japan, and the Asia Pacific. Lam Research Corporation was founded in 1980 and is headquartered in Fremont, California.

Advisors' Opinion:
  • [By Ben Axler]

    In addition, the company announced in December 2012 that it entered a strategic collaboration agreement on ion implant, dry-strip, etch processes, and photoresist strip applications, including material modification implants and high-dose implant strip (HDIS) with Lam Research (LRCX). Lam also agreed to acquire ACLS's dry strip intellectual property and technology for $10.7m ($8.7m received immediately, and $2.0m based on milestones). ACLS will indefinitely retain the entire service and support contracts of its dry strip installed base. In addition to the immediate financial benefits, ACLS benefits from a partnership with Lam by getting better visibility into end customer problems, and the ability to expand addressable market opportunities.

  • [By Brian Stoffel]

    3. Lam Research (NASDAQ: LRCX  ) , P/E of 166
    Lam's core business is in making equipment that helps to manufacture computer chips. The company trades at a lofty 166 times earnings right now, but if Lam is able to meet analyst expectations for 2013, today's price is just 12 times expected earnings.

Top 5 Income Stocks To Buy For 2015: Dr. Reddy's Laboratories Ltd(RDY)

Dr. Reddy?s Laboratories Limited, together with its subsidiaries, operates as a pharmaceutical company. It produces finished dosage forms, active pharmaceutical ingredients and intermediates, and biotechnology products. The company also conducts research in the areas of cancer, diabetes, cardiovascular, inflammation, and bacterial infection. In addition, it involves in the contract manufacture generic prescription and over-the-counter products for branded and generic companies in the United States. The company primarily focuses on therapeutic categories of cardiovascular, diabetes management, gastro-intestinal, and pain management. It markets its products in India, the United States, Europe, and the Russian Federation. The company has a co-development and commercialization agreement with Rheoscience A/S for the development and commercialization of Balaglitazone/DRF 2593, a partial PPAR-gamma agonist for the treatment of type 2 diabetes; an agreement with ClinTec Internatio nal for the development of an anti-cancer compound, DRF 1042; collaboration with the National Cancer Institute in Maryland; and an agreement with Argenta Discovery Limited for the joint development and commercialization of a novel approach to the treatment of chronic obstructive pulmonary disease. It also has an agreement with 7TM Pharma for drug discovery collaboration on selected drug targets; and an agreement with GlaxoSmithKline plc to develop and market pharmaceuticals for the treatment of cardiovascular disease, diabetes, oncology, gastroenterology, and pain management. Dr. Reddy?s Laboratories Limited was founded in 1984 and is headquartered in Hyderabad, India.

Advisors' Opinion:
  • [By Seth Jayson]

    Dr. Reddy's Laboratories (NYSE: RDY  ) reported earnings on May 14. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended March 31 (Q4), Dr. Reddy's Laboratories beat expectations on revenues and beat expectations on earnings per share.

  • [By Rich Duprey]

    Following FDA approval of its abbreviated new drug application, or ANDA,�Dr. Reddy's Laboratories (NYSE: RDY  ) announced today that it launched its lamotrigine extended-release tablets, the generic version of GlaxoSmithKline's Lamictal.�

Top 5 Income Stocks To Buy For 2015: Rochester Medical Corporation(ROCM)

Rochester Medical Corporation engages in the development, manufacture, and marketing of PVC-free and latex-free urinary continence and urine drainage care products for the home and acute care markets. Its home care products include a line of silicone and latex male external catheters for managing male urinary incontinence; intermittent catheters for managing both male and female urinary retention, including Magic 3 line of silicone intermittent catheters; and the FemSoft Insert, a soft, liquid-filled, urethral insert for managing stress urinary incontinence in adult females. The company manufactures male external catheters in six models, including UltraFlex, Pop-On, Wide Band, Natural, Clear Advantage, and Transfix catheters; and intermittent catheters in four versions that include standard, antibacterial, hydrophilic, and antibacterial personal catheters. Its acute care products include a line of standard Foley catheters and Strata brand of Foley catheters; and Strata-NF Catheter, an antibacterial Foley catheter that reduces the incidence of hospital acquired urinary tract infection. The company?s primary customers include distributors, extended care facilities, and individual hospitals and healthcare institutions. It markets its products under the Rochester Medical brand name through a direct sales force in the United States, the United Kingdom, and the Netherlands, as well as through independent distributors in other international markets. The company also supplies its products to various medical product companies for sale under private label brands owned by these companies. Rochester Medical Corporation was founded in 1988 and is headquartered in Stewartville, Minnesota.

Advisors' Opinion:
  • [By Monica Wolfe]

    Gabelli then made two separate buys into Rochester Medical (ROCM). On Sept. 4, the guru upped his stake by over 30% and on Sept. 5, Gabelli added an additional 10.21%. The guru purchased a total of 227,600 shares at an average price of $19.90 per share. Gabelli now holds on to a total of 750,110 shares, representing about 6.12% of the company�� shares outstanding.

Top 5 Income Stocks To Buy For 2015: Microvision Inc.(MVIS)

MicroVision, Inc. engages in the development of miniature laser display and imaging engines based upon its proprietary PicoP display engine technology. Its technology uses two dimensional micro-electrical mechanical systems, lasers, optics, and electronics to create a video or still image from a small form factor device. The company offers Pico projector displays intended to be used for users of mobile consumer devices, such as smartphones, media players, tablet PCs, and other consumer electronics products. Its products also comprise automotive head-up displays that project high-resolution images onto the windshield of an automobile providing the driver with information consisting of GPS mapping images, audio controls, and other automobile instrumentation information related to the car's operation. In addition, the company offers near-eye wearable display platform to provide personal viewing of information from a mobile device through a wired or wireless connection. Furthe r, it offers ROV hand held bar code scanners, and bar code scanner enabled enterprise solutions through distributors and original equipment manufacturers, as well as directly to end users through its online store. The company serves customers operating in the consumer, defense, industrial, and medical markets. MicroVision, Inc. was founded in 1993 and is headquartered in Redmond, Washington.

Advisors' Opinion:
  • [By Bryan Murphy]

    If the cash you have available is money you absolutely need to invest safely and wisely because you need it (and its appreciation) to love on in retirement, then let me stop you right now - the rest of what you're about to read probably isn't for you. On the other hand, if you and your qualified financial adviser agree you've got some money you can gamble with [i.e. if you lose it all, it won't matter], then may I direct your attention to Microvision, Inc. (NASDAQ:MVIS)? Long story made short, MVIS has dropped hints of a brewing rebound.

Top 5 Income Stocks To Buy For 2015: New Frontier Media Inc.(NOOF)

New Frontier Media, Inc. engages in the provision of transactional television services; and distribution of general motion picture entertainment. It operates in three segments: Transactional TV, Film Production, and Direct-to-Consumer. The Transactional TV segment distributes branded adult entertainment pay-per-view (PPV) networks and video-on-demand (VOD) content through electronic distribution platforms, including cable television and direct broadcast satellite operators. The Film Production segment produces and distributes mainstream films and erotic features that are distributed on domestic and international premium channels, PPV channels, and VOD systems across a range of cable and satellite distribution platforms. This segment also distributes a range of independently produced motion pictures to worldwide markets, and provides producer-for-hire services to Hollywood studios. The Direct-to-Consumer segment aggregates and resells adult content principally through its c onsumer Web sites. The company primarily serves cable and satellite operators, movie channel providers, and Hollywood studios in the United States, Europe, the Middle East, Africa, Latin America, Canada, and Asia. New Frontier Media, Inc. was founded in 1988 and is headquartered in Boulder, Colorado.

Top 5 Income Stocks To Buy For 2015: Mcdermott International Inc (MDR)

McDermott International, Inc. (MII),incorporated on August 11, 1959, is a engineering, procurement, construction and installation (EPCI) company. The Company is focused on designing and executing complex offshore oil and gas projects worldwide.

The Company provides fully integrated EPCI services; it delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning. Its business segments consist of Asia Pacific, Atlantic, Caspian and the Middle East. On March 19, 2012, the Company completed the sale of its former charter fleet business, which operated 10 of the 14 vessels.

Asia Pacific Segment

Through the Company�� Asia Pacific segment, it serves the needs of customers primarily in Australia, Indonesia, Vietnam, Malaysia and Thailand. Project focus in this segment includes the fabrication and installation of fixed and floating structures and the installation of pipelines and subsea systems. The majority of its projects in this segment are performed on an EPCI basis. Engineering and procurement services are provided by its Singapore office and are supported by additional resources located in Chennai, India and Houston, Texas. The primary fabrication facility for this segment is located on Batam Island, Indonesia. Additionally, through its equity ownership interest in a joint venture, the Company has developed a fabrication facility located in China.

The Company competes with Allseas Marine Contractors S.A.; Daewoo Engineering & Construction Co., Ltd.; EMAS Offshore Pte Ltd.; Heerema Group; Hyundai Heavy Industrial Co., Ltd.; Nippon Steel Corporation; Saipem S.P.A.; Samsung Heavy Industries Co., Ltd.; Sapura Kencana Petroleum; Subsea 7 S.A.; Swiber Holdings Ltd., and Technip S.A.

Atlantic Segment

Through the Company�� Atlantic segment, it serves the needs of customers primarily in the United States, Brazil, Mexico, Trinidad and West Africa. Project focus in this s! egment includes the fabrication and installation of fixed and floating structures and the installation of pipelines and subsea systems. Engineering and procurement services are provided by its Houston office, and its New Orleans office provides marine engineering capabilities to support its global marine activities. The primary fabrication facilities for this segment are located in Morgan City, Louisiana and Altamira, Mexico.

The Company competes with Allseas Marine Contractors S.A.; Dragados Offshore Mexico, S.A.; Gulf Island Fabrication Inc.; Heerema Group; Helix Energy Solutions Group, Inc.; KBR, Inc.; Kiewit Corporation; Saipem S.P.A.; Subsea 7 S.A., and Technip S.A.

Middle East Segment

Through the Company�� Middle East segment, which includes the Caspian region, it serves the needs of customers primarily in Saudi Arabia, Qatar, the United Arab Emirates (U.A.E.), Kuwait, India, Azerbaijan, Russia, and the North Sea. Project focus in this segment relates primarily to the fabrication and offshore installation of fixed and floating structures and the installation of pipelines and subsea systems. The majority of its projects in this segment are performed on an EPCI basis. Engineering and procurement services are provided by its Dubai, U.A.E., Chennai, India and Al Khobar, Saudi Arabia offices and are supported by additional resources from its Houston and Baku, Azerbaijan offices. The primary fabrication facility for this segment is located in Dubai, U.A.E.

The fabrication facilities in each segment are equipped with a variety of heavy-duty construction and fabrication equipment, including cranes, welding equipment, machine tools and robotic and other automated equipment. Project installation is performed by construction vessels, which the Company owns or leases and are stationed throughout the various regions and provide structural lifting/lowering and pipelay services. These construction vessels are supported by its multi-function vessels and chart! ered vess! els from third parties to perform a wide array of installation activities that include anchor handling, pipelay, cable/umbilical lay, dive support and hookup/commissioning.

The Company competes with Hyundai Heavy Industrial Co. Ltd.; Keppel Corporation; Larsen and Toubro Ltd (India); National Petroleum Construction Company (Abu Dhabi); Saipem S.P.A.; Technip S.A.; and Valentine and Swiber Holdings Ltd.

Advisors' Opinion:
  • [By Brian Pacampara]

    Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, engineering and construction company McDermott International (NYSE: MDR  ) has earned a coveted five-star ranking.

Social Security Benefits for Government Workers

My wife is a retired California teacher receiving a State Teachers' Retirement System (STRS) pension. She has not paid into Social Security. I am eligible to collect Social Security. Can she collect Social Security spousal benefits while I'm alive or death benefits if I die before her?

SEE ALSO: 10 Things You Must Know About Social Security

Your wife may be eligible for spousal and widow's Social Security benefits, but the amount may be reduced because of the Government Pension Offset (GPO), which affects many people who earned a pension from a federal, state or local government and did not pay Social Security taxes. The GPO affects certain federal civil-service employees and some state- and local-government employees, such as some police officers, teachers and others who did not pay into the Social Security system, says William Jarrett, of the Social Security Administration. He recommends talking with a representative at your local Social Security office to help calculate the impact on her benefits.

The GPO reduces the spouse's Social Security benefit by two-thirds of his or her government pension. If your wife is subject to the GPO and receives a monthly pension of $600, for example, then two-thirds of that ($400) must be deducted from her Social Security benefits. So if she's eligible for a $500 monthly spouse's or widow's benefit, then she'll receive $100 per month from Social Security ($500 – $400). If she takes her STRS pension annuity as a lump sum, then Social Security will calculate the reduction as if she chose to get monthly benefits, says Jarrett.

For more information about the Government Pension Offset, see the GPO fact sheet and calculator. For more information specifically for CalSTRS pensions, see Social Security, CalSTRS and You. The CalSTRS fact sheet can help people calculate the impact of the GPO on their spousal benefits, as well as calculate their own Social Security benefits if they paid into the system during one job but not another (a situation called the "Windfall Elimination Provision").

For more information about Social Security benefits, see our Social Security Special Report.

Got a question? Ask Kim at askkim@kiplinger.com.



2/06/2014

As stocks hit record highs, so do profit warnings

NEW YORK — A potential warning to stock investors: the fourth-quarter earnings pre-announcement season is shaping up to be the most negative on record.

In what seems like a major disconnect, the number of profit warnings relative to upbeat guidance is the widest it has ever been — at a time when the U.S. stock market is trading near record territory. The Standard & Poor's 500 index notched a new closing high of 1809 Monday.

For every 10 companies warning of weaker-than-expected earnings for the October-through-December period, only one has said it will top forecasts, says earnings-tracker Thomson Reuters I/B/E/S.

The actual 10.4-to-1 negative-to-positive pre-announcement ratio is on track to eclipse the prior record of 6.8 warnings for every positive one back in the first quarter of 2001. The long-term ratio is 2.3 warnings for each positive one.

"This is off the charts, I've never seen it this high," says Gregory Harrison, analyst at Thomson Reuters.

STOCKS: Is too little market fear something to fear?

Is this mass downgrade of the year-end profit outlook by corporate CEOs, which some blame on the 16-day government shutdown, a threat to the stock market's upward march?

Oddly, despite CEOs muted outlook, Wall Street, while worried, doesn't necessarily see the weak earnings guidance as a bull market killer.

Wall Street has come up with a handful of reasons why the negative earnings data might not be as damaging to the bull case as one might imagine.

1. Estimates already slashed. Since the start of 2013, Wall Street has cut profit forecasts in half for the final quarter of 2013. Analysts now expect 7.8% growth, down from 17.6% on Jan. 1 and 11% on Oct. 1. In short, the bar companies must hurdle has already been lowered.

2. CEOs more cautious. "Corporate leaders are very unsure about the outlook," says Alan Skrainka, chief investment officer at Cornerstone Wealth Management. "Setting low expectations is the best way to avoid a (profit) disa! ppointment later." Stocks tend to perform better when a company tops profit forecasts.

Mark Litzerman, equity research manager for Wells Fargo Private Bank, notes that CEOs have been issuing more negative guidance in recent quarters. Indeed, four of the 10 most-negative profit pre-announcement seasons have come in 2013.

3. It's still a Fed-driven market. Stocks have been driven by the Federal Reserve's easy-money policies the past few years. And while CEO profit warnings are worrisome, "an earnings disappointment will be transient if the Fed waits until March to taper," or reduce its monthly bond purchases, says David Kotok, chief investment officer at Cumberland Advisors.

TRACK YOUR STOCKS: Get real-time quotes with our free Portfolio Tracker

4. U.S. companies are strong. Sure, CEOs are cautious, but U.S. companies have posted record profits every year since 2011. "Although companies' earnings may slow they're still making a ton of money and cash flow is even better," says Neil Hennessy, chief investment officer at Hennessy Funds.

5. Profits to improve. "I think we'll get some modest improvement in earnings in 2014," says Bob Doll, chief equity strategist at Nuveen Investments. Profitability will get a boost from consumers that feel richer due to rising stock and home prices. He also expects U.S. companies to spend more and sees stronger growth in Europe and China.

2/05/2014

Top 5 Cheapest Companies To Invest In Right Now

Recently, well-known Wharton Professor Jeremy Siegel (he of Stocks for the Long Run fame) spoke on the topic of valuation in the broad market, and made a strong case as to why the S&P 500 is still quite undervalued with respect to the current interest rate environment.

Additionally, he asserted that the technology sector is at ��ne of the cheapest levels it�� ever been relative to the rest of the market.��A bold claim indeed, and one worth exploring to give merit to the argument that, despite the record highs of late, there are still pockets of value within the market.

While historical data on individual sectors is not easy to come by and the late-1990s Dot.com Boom and Bust as well as the 2008 Collapse of Lehman Brothers and subsequent financial crisis definitely skew the respective averages for technology and financial stocks, we have crunched simple year-end numbers for the 10 S&P sectors (as well as the broad S&P 500 Index) going back to 2002. Interestingly, the current P/E ratio on the broad-based S&P 500 is 16.8, right in line with the average over the past 11 years, suggesting that stocks in general are not significantly overvalued, especially when one considers the incredibly low interest rate climate that exists today.

Top 5 Cheapest Companies To Invest In Right Now: First Capital Inc.(FCAP)

First Capital, Inc. operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company generates various deposit products, including non-interest bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. Its loan portfolio comprises residential loans, such as fixed-rate mortgage loans and adjustable rate mortgage loans; construction loans; commercial real estate loans secured by small retail stores, professional office space, and farm properties; commercial business loans secured by inventory, accounts receivable, and business equipments, such as trucks and tractors; and secured or guaranteed consumer loans, including automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, and loans secured by savings deposits, as well as unsecured c onsumer loans. The company operates 13 locations in southern Indiana. First Capital, Inc. was founded in 1891 and is based in Corydon, Indiana.

Top 5 Cheapest Companies To Invest In Right Now: Research in Motion Ltd (BBRY)

Research In Motion Limited, incorporated on March 7, 1984, is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services, it provides platforms and solutions for seamless access to information, including e-mail, voice, instant messaging, short message service (SMS), Internet and intranet-based applications and browsing. The Company's technology also enables an array of third party developers and manufacturers to enhance their products and services through software development kits, wireless connectivity to data and third-party support programs.Its portfolio of products, services and embedded technologies are used by thousands of organizations and millions of consumers around the world and include the BlackBerry wireless solution, the RIM Wireless Handheld product line, the BlackBerry PlayBook tablet, software development tools and other software and hardware.

On March 25, 2011, the Company purchased 100% of the shares of a company whose technology is being incorporated into the Company�� developer tools. On April 26, 2011, the Company purchased certain assets of a company whose acquired technologies will be incorporated into the Company�� products. In June 2011, the Company acquired Scoreloop. On March 8, 2012, the Company acquired Paratek Microwave Inc. During the fiscal year ended March 3, 2012 (fiscal 2012), the Company purchased 100% interests of a company, whose technology will be incorporated into its technology; whose technology offers cloud-based services for storing, sharing, accessing and organizing digital content on mobile devices; whose technology is being incorporated into an application on the BlackBerry PlayBook tablet; whose technology offers a customizable and cross-platform social mobile gaming developer tool kit, and whose technology will provide a multi-platform BlackBerry Enterprise Solution for managing and securing mobile devices for enterpris! es and government organizations.

On April 24, 2012, the Company launched BlackBerry 7 smartphone, the BlackBerry Curve 9220, for customers in Indonesia. April 18, 2012, it launched BlackBerry 7 smartphone, the BlackBerry Curve 9220, for customers in India. On April 17, 2012, it announced availability of the BlackBerry Bold 9790 smartphone in Spain. On April 3, 2012, it launched BlackBerry Mobile Fusion, and launched four BlackBerry smartphones powered by the BlackBerry 7 operating system (OS) in Cambodia, which included BlackBerry Bold 9900, BlackBerry Bold 9790, BlackBerry Curve 9360 and BlackBerry Curve 9380. On April 2, 2012, it announced the availability of BlackBerry App World, the official application store for BlackBerry smartphones in Brunei, and it announced availability of the BlackBerry Bold 9790 and BlackBerry Curve 9380 smartphones for Cell C customers in South Africa. On March 27, 2012, it launched of the BlackBerry solution in Benin Republic. On March 15, 2012, it launched of BlackBerry services in China. On March 7, 2012, it launched the BlackBerry service in Angola.

The Company's primary revenue stream is generated by the BlackBerry wireless solution, consists of smartphones and tablets, service and software. BlackBerry service is provided through a combination of its global BlackBerry Infrastructure and the wireless networks of its carrier partners. On February 21, 2012, it released the BlackBerry PlayBook OS 2.0 software. It generates hardware revenues from sales, primarily to carriers and distributors. During fiscal 2012, the Company launched the wireless fidelity (WiFi)-enabled BlackBerry PlayBook tablet in 44 markets around the world. On July 21, 2011, the BlackBerry PlayBook tablet received Federal Information Processing Standard 140-2 certification.

BlackBerry Smartphones and Tablets

BlackBerry smartphones uses wireless, push-based technology that delivers data to mobile users��business and consumer applications. BlackBerry s! martphone! s integrate messaging including instant messaging, email and SMS; voice calling; Webkit browser; multimedia capabilities; calendar, and other applications. During fiscal 2012, it introduced 10 new smartphones and launched software updates to both its smartphone and tablet platforms. BlackBerry smartphones are available from hundreds of carriers and indirect channels, through a range of distribution partners, and are designed to operate on a variety of carrier networks, including HSPA/HSPA+/UMTS, GSM/GPRS/EDGE, CDMA/Ev-DO, and iDEN.

During fiscal 2012, its BlackBerry smartphone and tablet portfolio included BlackBerry Bold series, BlackBerry Torch series, BlackBerry Curve series and The BlackBerry PlayBook tablet. Its BlackBerry Bold series includes BlackBerry Bold 9900 and 9930 and BlackBerry Bold 9790. The Company�� BlackBerry Torch series include BlackBerry Torch 9810 and All-Touch BlackBerry Torch 9850 and 9860. The Company's BlackBerry Curve series include BlackBerry Curve 9350/9360/9370 and All-Touch BlackBerry Curve 9380 Smartphone. The BlackBerry PlayBook tablet features the BlackBerry PlayBook OS 2.0. The BlackBerry PlayBook offers a seven-inch high definition display, a dual core one gigahertz processor, dual high definition cameras, multitasking and a Web browsing.

BlackBerry Enterprise Solution

BlackBerry Enterprise Server is software that acts as the centralized link between BlackBerry smartphones, enterprise systems, business applications and wireless networks. BlackBerry Enterprise Server integrates with enterprise messaging systems including Microsoft Exchange, IBM Lotus Domino and Novell GroupWise to synchronize with BlackBerry smartphones to provide mobile users with wireless access to e-mail, calendar, contacts, notes and tasks. It also provides access to business applications and enterprise systems. In addition, it provides security features and offers administrative tools. BlackBerry Enterprise Server is required for certain other enterprise ! solutions! , such as BlackBerry Mobile Voice System (for bringing desk phone functionality to BlackBerry smartphones); BlackBerry Clients for Microsoft Office Communications Server, IBM Lotus Sametime and Novell GroupWise Messenger (for enterprise instant messaging); IBM Lotus Connections (for enterprise social networking); IBM Lotus Quickr (for document sharing and collaboration); and Chalk Pushcast Software (for corporate podcasting).

The Company�� BlackBerry Mobile Fusion provides a Web-based interface that allows enterprises to provision, audit, and protect mobile devices including BlackBerry smartphones, BlackBerry PlayBook tablets, and devices that use iOS and Android. BlackBerry Balance helps enterprises support the Bring Your Own Device (BYOD) trend. BlackBerry Enterprise Server Express is free server software that synchronizes BlackBerry smartphones with Microsoft Exchange or Microsoft Windows Small Business Server. BlackBerry Enterprise Server Express works with Microsoft Exchange 2010, 2007 and 2003 and Microsoft Windows Small Business Server 2008 and 2003 to provide users with wireless access to e-mail, calendar, contacts, notes and tasks, as well as other business applications and enterprise systems behind the firewall.

BlackBerry Mobile Voice System (BlackBerry MVS) allows organizations to converge office desk phones and BlackBerry smartphones. BlackBerry MVS is consists of three components: BlackBerry MVS Client, BlackBerry MVS Services, and BlackBerry MVS Server. It unifies fixed and mobile voice communications. Hosted BlackBerry services bring the BlackBerry Enterprise Server features, functionality, and security capabilities in a package that is managed for end users. Hosted BlackBerry services are conveniently handled and supported by a BlackBerry certified partner from the BlackBerry Alliance Program, giving small and medium -sized enterprise (SME) enterprises the support and convenience they need.

Service

The Company generates service rev! enues fro! m billings to RIM's BlackBerry subscriber account base. It generates service revenues primarily from a monthly infrastructure access fee charged to a carrier or reseller, which the carrier or reseller in turn bills the BlackBerry subscriber.

BlackBerry Technical Support Services

BlackBerry Technical Support Services are a suite of annual technical support and software maintenance programs. The programs are designed to meet the customer�� BlackBerry support needs by offering a contact for BlackBerry wireless solution technical support directly from the Company.

Non-Warranty Repairs

The Company generates revenue from its repair and maintenance program for BlackBerry smartphones that are returned to it by the carrier, the reseller, or the customer. It generates revenue for repair after the expiration of the contractual warranty period.

The Company competes with Apple Inc., Microsoft Inc., Nokia Corporation, Dell, Inc., Fujitsu Limited, General Dynamics Corporation, Hitachi America, Ltd., HTC Corporation, Huawei Technologies Co. Ltd., LG Electronics Mobile Communications Company, Mitsubishi Corporation, Motorola Mobility Holdings, Inc., NEC Corporation, Samsung Electronics Co., Ltd., Sharp Corporation, Sony Corporation, ZTE Corporation, IBM Corporation, Microsoft Corporation, Notify Technology Corporation, Openwave Systems Inc., Seven Networks, Inc., Sybase, Inc. and Good Technologies.

Advisors' Opinion:
  • [By Jeff Reeves]

    What can you say about BlackBerry (BBRY) other than this stock isn�� long for this world? Despite a buyout offer of $9 per share from Canadian investing icon Prem Watsa and his Fairfax Financial firm, the stock regularly trades under $8 because investors simply don�� think there is enough will or financing to get the deal done at $9.

Best Internet Companies To Buy Right Now: Asset Acceptance Capital Corp.(AACC)

Asset Acceptance Capital Corp. engages in the purchase and collection of defaulted and charged-off accounts receivable portfolios from consumer credit originators in the United States. The consumer credit originators primarily include credit card issuers, consumer finance companies, healthcare providers, retail merchants, telecommunications, and utility providers, as well as resellers and other holders of consumer debt; private brokers; and debt resellers. The company periodically sells receivables from these portfolios to unaffiliated companies. It also finances the sales of consumer product retailers; and licenses a collection software application. The company was founded in 1962 and is headquartered in Warren, Michigan.

Top 5 Cheapest Companies To Invest In Right Now: Canadian Pacific Railway Limited(CP)

Canadian Pacific Railway Limited, through its subsidiaries, operates as a transcontinental railway providing freight transportation services, logistics solutions, and supply chain expertise in Canada and the United States. It transports bulk commodities, including grain, coal, sulphur, and fertilizers; merchandise freight; finished vehicles and automotive parts; forest products, which include wood pulp, paper, paperboard, newsprint, lumber, panel, and oriented strand board; and industrial and consumer products comprising chemicals, energy, and plastics, as well as mine, metals, and aggregates. The company provides rail and intermodal transportation services over a network of approximately 14,700 miles serving the principal business centers of Canada, from Montreal to Vancouver, British Columbia; and the Midwest and Northeast regions of the United States. Canadian Pacific Railway Limited was founded in 1881 and is headquartered in Calgary, Canada.

Advisors' Opinion:
  • [By Eric Lam]

    BCE Inc. (BCE) dropped 1.3 percent to a February low, after Macquarie Group Ltd. said that phone shares are vulnerable amid increased regulation. Canadian Pacific Railway Ltd. (CP) lost 4.4 percent to extend losses to a fourth day after its largest shareholder said it will sell part of its stake. WestJet Airlines Ltd. slid 2.3 percent after a measure of customers on its flights declined. A gauge of real estate investment trust fell for a seventh day, the longest streak in three years.

Top 5 Cheapest Companies To Invest In Right Now: Symantec Corporation(SYMC)

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

Advisors' Opinion:
  • [By Paul Ausick]

    Symantec Inc. (NASDAQ: SYMC) reported second fiscal quarter 2014 results after markets closed on Wednesday. For the quarter, the network security software maker posted adjusted diluted earnings per share (EPS) of $0.50 on revenues of $1.64 billion. In the same period a year ago, the company reported EPS of $0.45 on revenues of $1.7 billion. Second-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.44 and $1.69 billion in revenues.

  • [By Paul Ausick]

    Big Earnings Movers: AT&T Inc. (NYSE: T) is down 1.9% at $34.62 on earnings that were good but not great. Symantec Inc. (NASDAQ: SYMC) is down 12.8% at $21.48 on lagging revenues and a weak outlook. Fusion-io Inc. (NYSE: FIO) is down 24.4% at $9.81 on soft results. Goldcorp Inc. (NYSE: GG) is up 4% at $26.62 after reporting earnings this morning. Xerox Corp. (NYSE: XRX) is down 10.4% at $9.61 on a weak outlook tied to a failing turnaround plan.

Top 5 Cheapest Companies To Invest In Right Now: Amarantus Bioscience Holdings Inc (AMBS)

Amarantus BioScience Holdings, Inc., formerly Amarantus BioSciences, Inc., incorporated on March 22, 2013, is focuses on developing intellectual property and proprietary technology in order to develop drug candidates and diagnostic blood tests to diagnose and treat human diseases. The Company owns the intellectual property rights to a therapeutic protein known as Mesencephalic-Astrocyte-derived Neurotrophic Factor (MANF), owns the intellectual property rights to biomarkers related to oncology and neurodegeneration named BC-SeraPro and NuroPro respectively, has a license to an Alzheimer�� disease blood test named LymPro, and owns a number of proprietary cell lines called PhenoGuard. MANF was the first therapeutic protein discovered from a PhenoGuard Cell Line. In December 2012, the Company acquired neurodegenerative diagnostic portfolio from Power3 Medical Products. On March 22, 2013, the Company was merged with into Amarantus Bioscience Inc.

The Company also owns an inventory of 88 cell lines that Amarantus refers to as PhenoGuard Cell Lines. MANF is a protein that corrects protein misfolding. The Company�� MANF product development effort is centered on a therapy for Parkinson�� disease.

Advisors' Opinion:
  • [By Bryan Murphy]

    I've taken bullish swings on - and been wrong to do so - Amarantus BioScience, Inc. (OTC:AMBS) before. My most recent bullish call on the budding biotech name was in April... a rally that fizzled shortly after I said it was just getting started. Somehow though, I find myself coming back to AMBS as a breakout candidate. This time, however, it's for a slightly different reason.

Top 5 Cheapest Companies To Invest In Right Now: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

Advisors' Opinion:
  • [By Rich Duprey]

    South America has become an unsettled region to mine in. Newmont Mining (NYSE: NEM  ) had its Peruvian Conga project brought to a short stop over environmental concerns, while Vale (NYSE: VALE  ) recently abandoned an Argentinean project because of the country's policies.�Costs for Pascua-Lama have ballooned over the past decade and now stand at about $8.5 billion, putting it at risk of becoming an albatross around the miner's neck even before the court decision. Barrick even resorted to bringing in engineering specialist Fluor (NYSE: FLR  ) to expand the scope of its project management before the court order.

Top 5 Cheapest Companies To Invest In Right Now: NGP Capital Resources Company(NGPC)

NGP Capital Resources Company is a business development company specializing in investments in small and mid size and middle market companies. The firm typically invests in acquisitions, buyouts, growth and development, revitalization, restructuring, recapitalizations, and special situations. It invests in energy companies with a focus on oil and gas exploitation, development, and production business; upstream businesses that acquire, develop, and produce oil, natural gas, and coal; midstream businesses that gather, process, store, and transport oil and natural gas; power generation and distribution; oil field services and other energy services; and alternative energy and other similar energy related businesses. The firm primarily invests between $10 million and $100 million in its portfolio companies. It invests in the form of secured, senior, and subordinate debt; convertible debt; preferred equity; project equity; production payments, net profits interests, and similar investments; and mezzanine loans and may receive equity investments in portfolio companies in connection with such investments. The firm makes asset and project based investments in private companies and can also invest in public companies. NGP Capital Resources Company was founded in 2004 and is based at Houston, Texas. It is a subsidiary of NGP Energy Capital Management.

Top 5 Cheapest Companies To Invest In Right Now: Penn Virginia Corporation(PVA)

Penn Virginia Corporation, an independent oil and gas company, primarily engages in the exploration and development of natural gas and oil properties in various onshore regions of the United States. The company is involved in the production and sale of natural gas, crude oil, and natural gas liquid products. It primarily focuses on developing the Eagle Ford Shale play in south Texas; and the horizontal Granite Wash play in the Mid-Continent region. The company also drills exploratory wells in the Marcellus Shale play in Pennsylvania; and has interests in the natural gas properties in the Haynesville Shale and Cotton Valley Sands in east Texas, and Selma Chalk in Mississippi. As of December 31, 2011, it had proved natural gas and oil reserves of approximately 883 billion cubic feet of natural gas equivalent; and owned approximately 1.1 million net acres of leasehold and royalty interests. The company sells its products using short-term floating price physical and spot marke t contracts. Penn Virginia Corporation was founded in 1882 and is headquartered in Radnor, Pennsylvania.

Advisors' Opinion:
  • [By Victor Selva]

    Competitors such as Sandridge Energy Inc. (SD), Penn Virginia Corp. (PVA), Newfield Exploration Co. (NFX) also have a negative ROE. An alternative could be Cabot Oil &Gas Corp. (COG), Range Resources Corp. (RRC), SM Energy Co. (SM), Pioneer Natural Resources Co. (PXD) or Whiting Petroleum Corp (WLL), Berry Petroleum Co. (BRY), but for investors searching for a higher ratio, Continental Resources Inc. (CLR) will be the best option.

  • [By Ben Levisohn]

    Shares of Penn Virgina (PVA) have surged today after the oil & gas explorer had its target price raised to $12 at Howard Weil.

    Penn Virginia’s stock has been on the move during the last few weeks, but that’s no reason to bet against it, note Howard Weil’s Brian Corales and David Amoss. They write:

    Despite the ~38% move in the stock over the last couple of weeks, PVA has tremendous upside with current assets. The compelling acreage position in the Eagle Ford, where PVA has ~66,000 net acres, should fuel the necessary growth over the next decade. The Company has delineated the acreage block and has 10 years of engineered locations with the potential to almost double that via ~50-acre downspacing, which is the current development plan by both PVA and neighboring Eagle Ford peers. The underlying valuation remains one of the most compelling for onshore operators at just 55% of our NAV and just 3.7x 2014 EBITDA.

    Penn Virginia has gained 6.9% to $7.15 at 11:56 p.m. today, while Sanchez Energy (SN) has advanced 5.2% to $29.10, Abraxas Petroleum (AXAS) has risen 2.4% to $2.97 and Gulfport Energy (GPOR) is up 1.3% at $67.31.

  • [By Lee Jackson]

    Penn Virginia Corp. (NYSE: PVA) is an independent oil and gas company that primarily focuses on developing the Eagle Ford Shale play in south Texas. Two very large investors include the Bank of Montreal and the legendary hedge fund run by George Soros. Penn Virginia is a stock to buy at Jefferies with a $7 price target. The consensus is at $7 also. The stock closed yesterday at $6.47.

  • [By Ben Levisohn]

    That’s what happened today to Penn Virginia (PVA), which has popped 9.7% to $10 after SunTrust Robinson Humphrey said it was a “top takeover target this year.” Oh, they also named it as a top pick, praised its “operational excellence,” and cited numerous catalysts.