3/31/2014

3 Road and Rail Stocks to Sell Now

RSS Logo Portfolio Grader Popular Posts: 10 Best “Strong Buy” Stocks — QIHU POWR UA and more7 Biotechnology Stocks to Buy NowBiggest Movers in Healthcare Stocks Now – EXAS CLDX CLVS HSP Recent Posts: Biggest Movers in Consumer Noncyclical Stocks Now – CALM BDBD PPC LO Biggest Movers in Transportation Stocks Now – SWFT NM KNX HTLD Hottest Capital Goods Stocks Now – SLCA CMI HEI.A FLR View All Posts

The ratings of three road and rail stocks are down this week, according to the Portfolio Grader database. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).

Kansas City Southern () ratings are on the decline this week as the company earns an F (“strong sell”). Last week, it received a D (“sell”). Kansas City Southern operates a railroad system that provides shippers with rail freight services in commercial and industrial markets of the United States and Mexico. The stock has a trailing PE Ratio of 30.90. .

The rating of Roadrunner Transportation Systems, Inc. () declines this week from a D to an F. Roadrunner Transportation Systems offers truck freight transportation services. The stock gets F’s in Earnings Revisions and Earnings Surprise. .

Guangshen Railway Co. Ltd. Sponsored ADR Class H’s () rating falls to a D (“sell”) this week, down from C (“hold”) the week prior. Guangshen Railway is a provider of railroad passenger and freight transportation, as well as railway network usage and services. .

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

3/30/2014

Top Chemical Companies To Invest In 2014

Among the companies with shares expected to actively trade in Wednesday’s session are Dow Chemical Co.(DOW), Tupperware Brands Corp.(TUP) and Yahoo Inc.(YHOO)

Dow Chemical swung to a fourth-quarter profit on improved sales in most of its operating businesses. Results solidly topped expectations and the company disclosed plans to boost its quarterly dividend by 15% to 37 cents a share and increase its stock buyback authorization to $4.5 billion. Shares climbed 6.4% to $45.80 in premarket trading.

Tupperware Brands said its fourth-quarter earnings rose 10% as sales improved in its emerging markets, offsetting weakness in established areas, but the results missed the company’s own estimates and it offered an outlook below consensus estimates. Shares dropped 6.9% to $78.03 premarket.

Top Chemical Companies To Invest In 2014: Symrise AG (SY1)

Symrise AG is a Germany-based fragrances and flavors manufacturer. The Company diversifies its activities into two business divisions: Flavor & Nutrition and Scent & Care. The Flavor & Nutrition business division produces flavors in liquid, powder, granulated and paste form, providing individual flavors as well as complete solutions which, apart from aroma, can contain additional functional raw materials, colorants or microencapsulated components. The products are divided into the beverages, savory, sweet and consumer health groups. The Scent & Care business division is divided into Fragrances, Oral Care, Life Essentials and Aroma Molecules. The Fragrances products are divided into the Fine Fragrances, Personal Care and Household groups. The Life Essentials are used in the cosmetic ingredients market, and include Botanicals and Cosmetic Ingredients, among others. The Aroma Molecules are used in the aroma chemicals market, and include Sensates (Menthols), among others. Advisors' Opinion:
  • [By Inyoung Hwang]

    Symrise AG (SY1) jumped 5.7 percent to 32.95 euros. The fourth-largest maker of flavors and fragrances pledged to remain one of the most profitable companies in its industry amid higher demand for aroma molecules and fragrances. Earnings before interest, taxes, depreciation and amortization, will be about 20 percent of sales in 2013 and will stay in the range of 19 percent to 22 percent in coming years, the company said today.

Top Chemical Companies To Invest In 2014: Akzo Nobel NV (AKZA)

Akzo Nobel NV is a manufacturer of paints, coatings and specialty chemicals based in the Netherlands. The Company operates within four segments. Within Buildings and Infrastructure segment, it manufactures decorative paints, protective, powder and coil coatings, and wood finishes for construction industry. Transportation segment offers specialty and powder coatings for automotive parts, peroxides, metal alkyls, and automotive, marine, yacht and aerospace coatings. Consumer Goods segment supplies finishes, adhesives and powder coatings for wood, specialty finishes for electronics, packaging coatings, surfactants, polymers and amines used in manufacture of soap, personal products and detergents. Within Industrial segment, it produces bulk chemicals, specialty chemicals, pulp and paper. In October 2013, it divested its Building Adhesives business; and acquired 50% stake and management control of Sadolin Paints Oman SAOC through joint venture agreement with Omar Zawawi Establishment LLC. Advisors' Opinion:
  • [By Jonathan Morgan]

    Akzo Nobel NV (AKZA) tumbled 8 percent to 43.52 euros, the biggest slide since 2008. Europe�� largest paintmaker reported a 14 percent decline in second-quarter earnings before interest, taxes, depreciation and amortization to 474 million euros. Sales fell 4 percent to 3.87 billion euros. Analysts had predicted 3.9 billion euros in revenue on average, based on estimates collated by Bloomberg.

Best Warren Buffett Stocks To Own For 2014: Koppers Holdings Inc (KOP)

Koppers Holdings Inc. (Koppers), incorporated on November 12, 2004,is a global provider of carbon compounds and commercial wood treatment products and services. The Company's products are used in a variety of niche applications in a diverse range of end-markets, including the aluminum, railroad, specialty chemical, utility, concrete and steel industries. The Company serves its customers through a global manufacturing and distribution networks, with manufacturing facilities located in the United States, Australia, China, the United Kingdom, the Netherlands and Denmark. The Company operates in two business segments: Carbon Materials & Chemicals and railroads & Utility Products.

The Company's operations are, to a substantial extent, vertically integrated. Through the Company's Carbon Materials & Chemicals business, the Company processes coal tar into a variety of products, including carbon pitch, creosote, naphthalene and phthalic anhydride, which are intermediate materials necessary in the production of aluminum, the pressure treatment of wood, the production of high-strength concrete, and the production of plasticizers and specialty chemicals, respectively. Through the Company's Railroad & Utility Products business, the Company believes that the Company is thesupplier of railroad crossties to the North American railroads.

Carbon Materials & Chemicals

Carbon pitch, naphthalene, and creosote are produced through the distillation of coal tar, a by-product generated through the processing of coal into coke for use in steel and iron manufacturing. Coal tar distillation involves the conversion of coal tar into a variety of intermediate chemical products in processes beginning with distillation. During the distillation process, heat and vacuum are utilized to separate coal tar into three primary components: carbon pitch (approximately 50%), chemical oils (approximately 20%) and creosote (approximately 30%).

The Company's Carbon Materials & Chemicals business! (CM&C) manufactures principal products, including carbon pitch, a critical raw material used in the production of aluminum and steel; naphthalene, used for the production of phthalic anhydride and as a surfactant in the production of concrete; phthalic anhydride, used in the production of plasticizers, polyester resins and alkyd paints, and creosote and carbon black feedstock, used in the treatment of wood or as a feedstock in the production of carbon black. The Company also uses naphthalene as a feedstock in the manufacture of phthalic anhydride. The primary markets for phthalic anhydride are in the production of plasticizers, unsaturated polyester resins and alkyd resins. The Company is a producer of carbon pitch for the aluminum industry.

Creosote is used as a commercial wood treatment chemical to preserve railroad crossties and lumber, utility poles and piling. The majority of the Company's domestically produced creosote is sold to its Railroad & Utility Products business. In Australia, China and Europe, creosote is sold primarily into the carbon black market for use as a feedstock in the production of carbon black. In Europe and China creosote is also sold to wood treaters. The Company's wood treating plants in the United States purchase substantially all of their creosote from the Company's tar distillation plants.

Other products include the sale of refined tars, benzole and specialty chemicals. The Company's CM&C business manufactures its primary products and sells them directly to the Company's global customer base under long-term contracts or through purchase orders negotiated by its regional sales personnel and coordinated through its global marketing group in the United States. The Company's nine coal tar distillation facilities including joint ventures and four carbon materials terminals give the Company the ability to offer customers multiple sourcing and a consistent supply of products.

Railroad & Utility Products

The Company's Railroad ! & Utility! Products business (R&UP) sells treated and untreated wood products, rail joint bars and services primarily to the railroad and public utility markets in the United States and Australia. The Company also produces concrete crossties, a complementary product to its wood treatment business, through a joint venture in the United States.

Railroad products include procuring and treating items such as crossties, switch ties and various types of lumber used for railroad bridges and crossings. Railroad products also include manufacturing and selling rail joint bars, which are steel bars used to join rails together for railroads. Utility products include transmission and distribution poles for electric and telephone utilities and piling used in industrial foundations, beach housing, docks and piers. The R&UP business operates 13 wood treating plants, one rail joint bar manufacturing facility, one co-generation facility and 13 pole distribution yards located throughout the United States and Australia. The Company's network of plants is strategically located near timber supplies to enable the Company to access raw materials and service customers effectively. In addition, the Company's crosstie treating plants are typically adjacent to its railroad customers' track lines, and its pole distribution yards are typically located near its utility customers.

In the United States, hardwood lumber is procured by the Company from hundreds of small sawmills throughout the northeastern, midwestern and southern areas of the country. The crossties are shipped via rail car or trucked directly to one of the Company's crosstie treating plants, all of which are on line with a railroad. The crossties are either air-stacked for a period of six to twelve months or artificially dried by a process called boultonizing. Once dried, the crossties are pressure treated with creosote, a product of the Company's CM&C business.

The Company's R&UP business' customer base is the North American Class I railroa! d market,! which buys approximately 80% of all crossties produced in the United States and Canada. The Company also has relationships with many of the approximately 550 short-line and regional rail lines. This also forms the customer base for the Company's rail joint bar products. The railroad crosstie market is a mature market with approximately 23 million replacement crossties (both wood and non-wood) purchased during 2012. The Company supplies all seven of the North American Class I railroads and have contracts with six of them. The Company treats poles with a variety of preservatives, including pentachlorophenol, copper chrome arsenates and creosotes .In the United States the market for utility pole products is characterized by a number of small producers selling into a price-sensitive industry. The utility pole market is fragmented domestically, with over 200 investor-owned electric and telephone utilities and 2,900 smaller municipal utilities and rural electric associations.

Advisors' Opinion:
  • [By Jeremy Bowman]

    What: Shares of Koppers Holdings (NYSE: KOP  ) were looking rusty today, falling as much as 12% after the company cut its outlook for the current quarter.

Top Chemical Companies To Invest In 2014: Sigma-Aldrich Corp (SIAL)

Sigma-Aldrich Corporation, incorporated in May 12, 1975, is a life science and high technology company. The Company develops, manufactures, purchases and distributes the range of chemicals, biochemicals and equipment available globally and also provides global biopharmaceutical testing services. These chemical products, kits and services are used in scientific research, including genomic and proteomic research, biotechnology, pharmaceutical development and as key components in pharmaceutical, diagnostic and other high technology manufacturing. As of December 31, 2012, the Company offered approximately 45,000 equipment products. On January 31, 2012, the Company completed its acquisition of all of interest of BioReliance, a provider of global biopharmaceutical testing services. On April 2, 2012, the Company acquired Research Organics, a supplier of purity biochemicals.

The Company provides products and services that focus on research customers that use smaller quantities of its products in basic life science and high-technology research and development (R&D); manufacturing customers that use its products in quantities in lab-stage development and manufacturing; life science customers who use its biopharmaceutical testing services to facilitate the development, manufacturing and commercialization of biological drugs, and industrial and diagnostic companies that use its products in range of forms of assays and testing, as well as in clinical diagnostics. The Company has a customer base of commercial laboratories, pharmaceutical companies, industrial companies, universities, diagnostics companies, biotechnology companies, electronics companies, hospitals, governmental institutions and non-profit organizations located in the United States and globally.

Advisors' Opinion:
  • [By Nicole Seghetti]

    2. Sigma-Aldrich (NASDAQ: SIAL  )
    Maker of test tubes and beakers, Sigma-Aldrich has increased its dividend every year since 1976. Even though the company pays a relatively scrawny 1.1% dividend yield, its 21% payout ratio signals the company has ample opportunity to up its dividend for many years to come.

  • [By Maxx Chatsko]

    Any company that creates products and relies on other companies to use and distribute them will inevitably forge strong relationships with its customers. It's an important thing to look into when investing, yet easy to overlook. Investors should know whether customers are reliable, which are leaned on the most, and if the company they own is too dependent on any customer (or a select few). Bioprocessing product company Repligen (NASDAQ: RGEN  ) may make consumables that are the lifeline of the biotech industry, but its customer relationships are absolutely critical for smooth operations. Let's look at how the company interacts with the Life Sciences division of General Electric (NYSE: GE  ) , EMD Millipore from Merck (NYSE: MRK  ) , and Sigma-Aldrich (NASDAQ: SIAL  ) -- the three most important customers.

  • [By Monica Gerson]

    Sigma-Aldrich (NASDAQ: SIAL) is expected to report its Q3 earnings at $0.99 per share on revenue of $661.29 million.

    CR Bard (NYSE: BCR) is projected to post its Q3 earnings at $1.40 per share on revenue of $739.62 million.

Top Chemical Companies To Invest In 2014: Huntsman Corporation(HUN)

Huntsman Corporation engages in the manufacture and sale of differentiated organic and inorganic chemical products worldwide. The company offers polyurethane chemicals, including methyl diphenyl diisocyanate, propylene oxide, polyols, propylene glycol, thermoplastic polyurethane, aniline, and methyl tertiary-butyl ether products, which are used to produce rigid and flexible foams, as well as coatings, adhesives, sealants, and elastomers; and performance products, such as amines, carbonates, surfactants, linear alkyl benzene, maleic anhydride, performance chemicals, ethylene glycol, olefins, and technology licenses. It also provides advanced materials comprising epoxy resin compounds and formulations; cross-linking, matting agents, and curing agents; and epoxy, acrylic and polyurethane-based adhesives, and tooling resin formulations. In addition, Huntsman Corporation offers textile chemicals, dyes, and titanium dioxide. The company?s products are used in various applicatio ns, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals, and dye industries. Huntsman Corporation was founded in 1970 and is based in Salt Lake City, Utah.

Advisors' Opinion:
  • [By Neha Chamaria]

    On the same day that DuPont declared its intentions, Tronox (NYSE: TROX  ) , another big TiO2 producer, chipped in with a similar announcement to increase prices effective June 1. These two were among the only major TiO2 companies that were left to jump on the price-hike bandwagon. Others, like Huntsman (NYSE: HUN  ) and Kronos Worldwide, already took the plunge some weeks back.

  • [By Neha Chamaria]

    The real pain
    The titanium dioxide business was the biggest drag for DuPont last year, as demand for the pigment, which is used primarily in paints, softened globally. This year has been encouraging so far, with most TiO2 producers witnessing an uptick in the demand for the pigment. While DuPont reported an 8% sequential rise in TiO2 sales volumes during its first quarter, Huntsman (NYSE: HUN  ) saw its first-quarter TiO2 volumes rise 27%�sequentially. Furthermore, Huntsman scaled down production during the quarter to reduce inventory, and feels�that a better balance between demand and supply should help the industry bounce back during the second half of the year.

  • [By Victor Selva] re promising results, and less volatile revenues during these last years. This, of course, has led to a high price to earnings ratio discouraging investors as we see later.

    Geographically Diversified

    On 2012, almost 50% of Eastman sales were generated in North America, while more than 25% were in Asia and 20% in Europe, Middle East and Africa. This diversification is to be taken into account since it guarantees long-term revenue, even if cigarette consumption decreases in some specific region (for instance, American sales declined �in recent years), which would stabilize acetate tow demands worldwide.

    Industrial Background and Gurus��Preference

    Eastman�� earnings per share growth was significantly higher than industry median (46.9% vs. 5.2%) but so was Huntsman��, at 46.5%. The critical difference between these two industry giants stands out by looking at their price to earnings: Eastman�� is below median (16.4 vs. 19.1) while Huntsman rose up to 130.1, thus entailing a significant price premium relative to industry peers��average.

    Although Ashland does have an inferior price to earnings ratio than Eastman�� (11.5), there�� a significant difference in their earnings per share growth: 27%, probably caused by a decline in revenue.

    This might have been one of the reasons that motivated investors David Dreman (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) to significantly reduce their stake in Huntsman (both of them by more than 80% margin). In contrast, Leon Cooperman (Trades, Portfolio) and Scott Black (Trades, Portfolio), reinforced their positions in Eastman. Most notably, Ray Dalio (Trades, Portfolio) even sold out his Huntsman position and bought more than 50,000 Eastman shares and a smaller 5,600 share position at Ashland by the end of September.

    Although being volatile, Eastman appears to show a promising future since it�� both cheaper and faster growing than its rivals in che

  • [By Jake L'Ecuyer]

    Leading and Lagging Sectors
    In trading on Thursday, basic materials shares were relative leaders, up on the day by about 1.20 percent. Among the leading sector stocks, gains came from Axiall (NYSE: AXLL), Materion (NYSE: MTRN), Huntsman (NYSE: HUN) and Joy Global (NYSE: JOY).

Top Chemical Companies To Invest In 2014: Basf SE (BASFY)

BASF SE is a chemical company. The Company operates in six segments: Chemicals, Plastics, Performance Products, Functional Solutions, Agricultural Solutions and Oil & Gas. Chemicals segment offers products in the chemical, electronic, construction, textile, automotive, pharmaceutical and agricultural industries. Plastics segment offers a range of products, system solutions and services. Performance Products help its customers to improve their products and processes. Functional Solutions segment bundles system solutions and products for customers and industries. The Company�� Agricultural Solutions segment includes crop protection products, which guard against fungal diseases, insects and weeds. Its Oil & gas segment is a producer of oil and gas. On April 9, 2009, the Company acquired Ciba Holding AG. In April 2010, Intertek Group plc acquired the Regulatory and Safety Testing businesses of Ciba Expert Services (Ciba ES) from the Company. In December 2010, the Company completed its acquisition of Cognis Holding GmbH from Cognis Holding Luxembourg S.a r.l.

Chemicals

The Company�� Chemicals segment portfolio ranges from basic chemicals, glues and electronic chemicals for the semiconductor and flat panel display industry, to solvents and plasticizers, as well as starting materials for detergents, plastics, textile fibers, paints, coatings and pharmaceuticals. This segment is organized into three divisions: Inorganics, Petrochemicals and Intermediates. The important basic products of the Inorganics division are ammonia, methanol, sodium hydroxide, chlorine, as well as sulfuric and nitric acid. The Petrochemicals division produces products, such as ethylene, propylene, butadiene and benzene, which are produced in steam crackers from naphtha or natural gas. In further processing stages, it produces alcohols, solvents and plasticizers for the chemicals and plastics industries. BASF SE�� Intermediates division develops, produces and markets a range of intermediates of all produc! ers worldwide. The product lines include amines, diols, polyalcohols, acids and specialties. They serve as starting materials for products, such as coatings, plastics, pharmaceuticals, textile fibers, crop protection products, as well as detergents and cleaners.

Plastics

BASF�� Plastics segment is organized into two divisions: Performance Polymers and Polyurethanes. The Performance Polymers division is a supplier of engineering plastics, polyamides and polyamide intermediates, foams and specialty plastics. The Company offers its customers a portfolio of engineering plastics based on polyamide 6 and polyamide 6,6. This is complemented by products Ultradur, Ultraform and Ultrason. For the packaging, textile and food industries, it offers Ultramid, a base product for the manufacturing of fibers and foils. BASF SE�� product range also includes Ecoflex and Ecovio, biodegradable specialty plastics for the packaging industry. Styropor and its refinement Neopor are styrene-based precursors for foams used in insulating material for construction and packaging. The Polyurethanes division is a supplier of basic products, systems and specialties. The Company offers polyurethane products for numerous customer applications. Under brand names, such as Elastoflex and Elastopor, polyurethanes are used, as rigid or flexible foams in construction for furniture and household appliances.

Performance Products

The Performance Products segment consists of the Acrylics & Dispersions, Care Chemicals and Performance Chemicals divisions. Acrylics & Dispersions produces acrylic acid, as well as its derivatives superabsorbents and polymer dispersions. Superabsorbents are used particularly in diapers. Polymer dispersions are used in the production of glues, coatings, nonwoven materials and construction chemicals. The Company�� product portfolio for the paper industry consists of binders, process chemicals and kaolin pigments. Its Care Chemicals portfolio consists of products f! or cleani! ng, care, cosmetics and hygiene. Performance Chemicals pools specialties for various customer industries. The product portfolio consists of antioxidants, pigments, light stabilizers and specialty additives. The division also makes chemicals for the production and finishing of leather and textiles.

Functional Solutions

The Functional Solutions segment consists of the Catalysts, Construction Chemicals and Coatings divisions. The Catalysts division develops catalysts and adsorbents. It produces catalysts that transform pollutants in the exhaust flows of vehicles into harmless chemical and plastics. The Construction Chemicals division is engaged in development of concrete admixtures, such as concrete plasticizers, deferrers and curing agents. It also produces and markets construction systems. The Coatings division is a provider of coatings solutions for automotive and industrial applications. Its brands Glasurit and R-M are for the car refinish business.

Agricultural Solutions

The Agricultural Solutions segment consists of the Crop Protection division. The Company develops and produces active ingredients and formulations for the improvement of crop health and yields, and markets them worldwide. Its portfolio includes fungicides, insecticides, herbicides and seed treatments. Its product Headline contains the active ingredient F500, which is not only used for corn and soybean, but also for numerous other crops.

Oil & Gas

BASF�� oil and gas activities are bundled in the Wintershall Group. Wintershall and its subsidiaries operate in the business sectors exploration and production, and natural gas trading. In the exploration and production of oil and natural gas, the Company focuses on oil and gas regions in Europe, North Africa and South America, as well as Russia and the Caspian Sea region. The Mittelplate oil field in the North Sea tidal flats is the cornerstone of the Company�� oil production in Germany. Wintershall and RWE-D! EA each h! old a 50% interest in this field. During the year ended December 31, 2009, it acquired 25% interest in Cuxhaven concession. It operates 26 offshore platforms in Mittelplate region, of which 19 are actually controlled. In Libya, Wintershall operates eight onshore oil fields in the concessions 96 and 97 and exploits the associated gas released during crude oil production in a gas utilization plant for the local demand. In Mauritania, it operates two onshore exploration blocks. In 2008, Wintershall acquired stakes of 50% each in two exploration areas in the Canadon Asfalto Basin. It supplies Germany and several other European countries. The gas pipeline network operated by WINGAS TRANSPORT connects the markets in Western Europe with a natural gas infrastructure that runs through Eastern Europe and the Russian Federation all the way to the gas fields in Siberia. Other components portfolio include natural gas storage facility in Western Europe, in Rehdn, Germany, and the natural gas storage facility in Haidach, Austria.

Advisors' Opinion:
  • [By Dan Carroll]

    Firms across Germany's DAX have caught on. BASF (NASDAQOTH: BASFY  ) shares haven't had a great year so far, but the world's largest chemicals firm is looking around the world for growth. The company seeks to double its customer base in the Asia-Pacific region by 2020 in its chemicals and materials business, projecting sales in Asia to double from last year's 12.5 million euros to 25 million euros by that year. That kind of global growth will benefit investors, and the less BASF and other German stocks rely on Europe for sales, the better shareholders will do.

  • [By Maxx Chatsko]

    It was only a matter of time. Last month BASF (NASDAQOTH: BASFY  ) , the world's largest chemical company, announced three separate developments that will thrust it from being a mediocre player in industrial enzymes to a dominant force. BASF acquired Henkel's detergent enzyme technology, licensed the C1 biotechnology platform from Dyadic, and befriended Direvo Industrial Biotechnology from Germany for a next-generation animal feed enzyme.

Top Chemical Companies To Invest In 2014: MagnaChip Semiconductor Corporation (MX)

MagnaChip Semiconductor Corporation designs and manufactures analog and mixed-signal semiconductor products for high-volume consumer applications. It operates in three segments: Display Solutions, Power Solutions, and Semiconductor Manufacturing Services. The Display Solutions segment offers source and gate drivers, and timing controllers that cover a range of flat panel displays used in liquid crystal displays (LCDs), light emitting diodes (LEDs), 3D and organic light emitting diode televisions and displays, notebooks, and mobile communications and entertainment devices. The Power Solutions segment develop, manufactures, and markets power management solutions, including metal oxide semiconductor field effect transistors, power modules, analog switches, LED drivers, DC-DC converters, voice coil motor drivers, and linear regulators. This segment offers its products for a range of devices, including LCD, LED, 3D televisions, smartphones, mobile phones, desktop PCs, notebooks , tablet PCs, and other consumer electronics, as well as for industrial applications, such as power suppliers, LED lighting, and home appliances. The Semiconductor Manufacturing Services segment manufactures various products comprising display drivers, LED drivers, audio encoding and decoding devices, microcontrollers, touch screen controllers, RF switches, park distance control sensors for automotives, electronic tag memories, and power management semiconductors. This segment offers semiconductor manufacturing services to fabless analog and mixed-signal semiconductor companies. MagnaChip Semiconductor Corporation provides its products and services to consumer electronics OEMs, subsystem designers, and contract manufacturers through a direct sales force, as well as through a network of authorized agents and distributors in the United States, Korea, Taiwan, China, Japan, Hong Kong, and Macau. The company is headquartered in Seoul, South Korea.

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, consumer gadget chip maker MagnaChip Semiconductor (NYSE: MX  ) has earned a coveted five-star ranking.

  • [By Wallace Witkowski]

    Shares of MagnaChip Semiconductor Corp. (MX) �fell 13% to $12.50 on moderate volume after the company said it incorrectly stated revenue and has to restate its financial statements going back to 2011. Also, the company withdrew its guidance for the fourth quarter.

Top Chemical Companies To Invest In 2014: BioAmber Inc (BIOA)

BioAmber Inc. (BioAmber), incorporated on October 15, 2008, is a chemical company. The Company manufactures its bio-succinic acid in a facility using a commercial scale 350,000 liter fermenter in Pomacle, France. During the year ended December 31, 2011, the Company produced 487,000 pounds, or 221 metric tons, of bio-succinic acid at this facility. Succinic acid is used to manufacture a range of products used every day, including plastics, food additives and personal care products, and can also be used as a building block for a range of derivative chemicals. The Company produces and sells bio-succinic acid using its process for petroleum-derived succinic acid. It also has additional bio-based products under development with partners including bio-succinic acid derivatives, such as BDO, and applications of bio-succinic acid, such as plasticizers, polyurethanes and de-icing solutions. During 2011, the Company created a wholly owned subsidiary, BioAmber International, S.a.r.l.

The Company develops bio-succinic acid for a range of markets, such as personal care products and food additives, plasticizers, polyurethanes, resins and coatings. The applications for bio-succinic acid include plasticizers, polyurethanes, personal care products, de-icing solutions, resins and coatings, food additives, lubricants and other products. Plasticizers are organic esters that are primarily used to make flexible polyvinyl chloride. Adipic acid is used in polyester polyols, which are used to make polyurethanes. Polyurethanes are used in, among other things, soles for footwear, molded foams for automotive applications, such as car seats and arm rests, and non-foam applications such as coatings, adhesives and sealants. Other applications of bio-succinic acid that are developed and tested by potential customers, which include anti-freeze solutions, solvents, water treatment chemicals and effervescence agents such laundry tablets and bath salts.

The Company competes with Gadiv Petrochemical Industries ! Ltd., Mitsubishi Chemical, DSM, Anqing Hexing Chemical Co Ltd, Anhui Sunsing Chemicals Co., Ltd., Genomatica, Inc., Myriant Corporation and Roquette Freres S.A.

Advisors' Opinion:
  • [By Maxx Chatsko]

    He believes several companies have set the bar precipitously low to start the year despite targeted developments expected to occur before the start of 2014. Watch the following video for his thoughts on potential positive surprises awaiting investors in�Amyris� (NASDAQ: AMRS  ) ,�BioAmber� (NYSE: BIOA  ) ,�Codexis� (NASDAQ: CDXS  ) , and�Solazyme� (NASDAQ: SZYM  ) .

Top Chemical Companies To Invest In 2014: PPG Industries Inc.(PPG)

PPG Industries, Inc. manufactures and supplies protective and decorative coatings. The company offers coatings products for automotive and commercial transport/fleet repair and refurbishing, specialty coatings for signs, and light industrial coatings; and sealants, coatings, and technical cleaners/transparencies for commercial, military, regional jet, general aviation aircraft, and transparent armor for military land vehicles. It also provides coatings and finishes for the protection of metals and structures to metal fabricators, heavy duty maintenance contractors, and manufacturers of ships, bridges, rail cars, and shipping containers; and coatings to painting and maintenance contractors. In addition, PPG sells industrial and automotive coatings to manufacturing companies; adhesives and sealants for the automotive industry; metal pretreatments and related chemicals; and coatings and inks for aerosol, food, and beverage containers. Further, it supplies lenses, sunlenses, a nd optical lens materials; amorphous precipitated silicas for tire and battery separator markets; and Teslin substrate used in radio frequency identification tags and labels, e-passports, drivers? licenses, and identification cards applications. Additionally, PPG offers chlor-alkali and derivative products, such as chlorine, caustic soda, vinyl chloride monomer, chlorinated solvents, calcium hypochlorite, ethylene dichloride, hydrochloric acid, and phosgene derivatives to chemical processing, rubber and plastics, paper, minerals, metals, and water treatment industries. It also produces flat glass and continuous-strand fiber glass for commercial and residential construction, wind energy, energy infrastructure, transportation, and electronics industries. PPG sells its products through company-owned stores, home centers, paint dealers, and independent distributors, as well as directly to customers worldwide. The company was founded in 1883 and is headquartered in Pittsburgh, Pe nnsylvania.

Advisors' Opinion:
  • [By Laura Brodbeck]

    Thursday

    Earnings Expected From: UnitedHealth Group Incorporated (NYSE: UNH), Verizon Communications (NYSE: VZ), PrivateBancorp, Inc. (NASDAQ: PVTB), PPG Industries, Inc. (NYSE: PPG), Philip Morris International Inc (NYSE: PM), Nokia Corporation (NYSE: NOK), Peabody Energy Corporation (NYSE: BTU), Intuitive Surgical, Inc. (NASDAQ: ISRG), Chipotle Mexican Grill (NYSE: CMG) Economic Releases Expected: Chinese GDP, Chinese industrial production, Chinese retail sales, US industrial production, US housing starts, US building permits

    Friday

  • [By Rich Duprey]

    Privately held specialty-coatings producer Deft will be acquired by PPG Industries (NYSE: PPG  ) for an undisclosed sum.�

    Deft's primary business is supplying structural primers and military topcoats to the North American aviation industry, as well as architectural and industrial coatings, though they comprise much�smaller parts of its business.

  • [By Dan Caplinger]

    But the industry has gone through some major merger and acquisition activity recently. Sherwin-Williams announced last November that it will acquire Mexico's Consorcio Comex for $2.34 billion, giving the company greater geographical and product diversity. That'll be an important source of growth for Sherwin-Williams, as rival PPG Industries (NYSE: PPG  ) recently closed on its $1.05 billion acquisition of Akzo Nobel and its architectural coatings business. Moreover, with DuPont (NYSE: DD  ) having sold off its performance-coatings business, which focuses largely on automotive paint, to private equity firm Carlyle Group, Sherwin-Williams needed to boost its size in order to keep up with its competition.

  • [By Sean Williams]

    Paint and coating specialist PPG Industries (NYSE: PPG  ) advanced 6.2% after following Peabody's lead, and reporting solid first-quarter earnings results. For the quarter, PPG reported what was essentially flat revenue at $3.33 billion, and a profit of $1.58 per share, versus consensus estimates calling for $3.44 billion in revenue, and $1.56 in EPS. Furthermore, PPG boosted its quarterly dividend by 3%, to $0.61, for a new forward yield of 1.7%. The quarter was influenced by a $2.19 billion sale of one of its units to Georgia Gulf, but it speaks more to the ongoing strength in the paint business from a consumer and commercial level.

Top Chemical Companies To Invest In 2014: Basf SE (BASFY.PK)

BASF SE is a chemical company. The Company operates in six segments: Chemicals, Plastics, Performance Products, Functional Solutions, Agricultural Solutions and Oil & Gas. Chemicals segment offers products in the chemical, electronic, construction, textile, automotive, pharmaceutical and agricultural industries. Plastics segment offers a range of products, system solutions and services. Performance Products help its customers to improve their products and processes. Functional Solutions segment bundles system solutions and products for customers and industries. The Company�� Agricultural Solutions segment includes crop protection products, which guard against fungal diseases, insects and weeds. Its Oil & gas segment is a producer of oil and gas. On April 9, 2009, the Company acquired Ciba Holding AG. In April 2010, Intertek Group plc acquired the Regulatory and Safety Testing businesses of Ciba Expert Services (Ciba ES) from the Company. In December 2010, the Company completed its acquisition of Cognis Holding GmbH from Cognis Holding Luxembourg S.a r.l.

Chemicals

The Company�� Chemicals segment portfolio ranges from basic chemicals, glues and electronic chemicals for the semiconductor and flat panel display industry, to solvents and plasticizers, as well as starting materials for detergents, plastics, textile fibers, paints, coatings and pharmaceuticals. This segment is organized into three divisions: Inorganics, Petrochemicals and Intermediates. The important basic products of the Inorganics division are ammonia, methanol, sodium hydroxide, chlorine, as well as sulfuric and nitric acid. The Petrochemicals division produces products, such as ethylene, propylene, butadiene and benzene, which are produced in steam crackers from naphtha or natural gas. In further processing stages, it produces alcohols, solvents and plasticizers for the chemicals and plastics industries. BASF SE�� Intermediates division develops, produces and markets a range of intermediates of all produc! ers worldwide. The product lines include amines, diols, polyalcohols, acids and specialties. They serve as starting materials for products, such as coatings, plastics, pharmaceuticals, textile fibers, crop protection products, as well as detergents and cleaners.

Plastics

BASF�� Plastics segment is organized into two divisions: Performance Polymers and Polyurethanes. The Performance Polymers division is a supplier of engineering plastics, polyamides and polyamide intermediates, foams and specialty plastics. The Company offers its customers a portfolio of engineering plastics based on polyamide 6 and polyamide 6,6. This is complemented by products Ultradur, Ultraform and Ultrason. For the packaging, textile and food industries, it offers Ultramid, a base product for the manufacturing of fibers and foils. BASF SE�� product range also includes Ecoflex and Ecovio, biodegradable specialty plastics for the packaging industry. Styropor and its refinement Neopor are styrene-based precursors for foams used in insulating material for construction and packaging. The Polyurethanes division is a supplier of basic products, systems and specialties. The Company offers polyurethane products for numerous customer applications. Under brand names, such as Elastoflex and Elastopor, polyurethanes are used, as rigid or flexible foams in construction for furniture and household appliances.

Performance Products

The Performance Products segment consists of the Acrylics & Dispersions, Care Chemicals and Performance Chemicals divisions. Acrylics & Dispersions produces acrylic acid, as well as its derivatives superabsorbents and polymer dispersions. Superabsorbents are used particularly in diapers. Polymer dispersions are used in the production of glues, coatings, nonwoven materials and construction chemicals. The Company�� product portfolio for the paper industry consists of binders, process chemicals and kaolin pigments. Its Care Chemicals portfolio consists of products f! or cleani! ng, care, cosmetics and hygiene. Performance Chemicals pools specialties for various customer industries. The product portfolio consists of antioxidants, pigments, light stabilizers and specialty additives. The division also makes chemicals for the production and finishing of leather and textiles.

Functional Solutions

The Functional Solutions segment consists of the Catalysts, Construction Chemicals and Coatings divisions. The Catalysts division develops catalysts and adsorbents. It produces catalysts that transform pollutants in the exhaust flows of vehicles into harmless chemical and plastics. The Construction Chemicals division is engaged in development of concrete admixtures, such as concrete plasticizers, deferrers and curing agents. It also produces and markets construction systems. The Coatings division is a provider of coatings solutions for automotive and industrial applications. Its brands Glasurit and R-M are for the car refinish business.

Agricultural Solutions

The Agricultural Solutions segment consists of the Crop Protection division. The Company develops and produces active ingredients and formulations for the improvement of crop health and yields, and markets them worldwide. Its portfolio includes fungicides, insecticides, herbicides and seed treatments. Its product Headline contains the active ingredient F500, which is not only used for corn and soybean, but also for numerous other crops.

Oil & Gas

BASF�� oil and gas activities are bundled in the Wintershall Group. Wintershall and its subsidiaries operate in the business sectors exploration and production, and natural gas trading. In the exploration and production of oil and natural gas, the Company focuses on oil and gas regions in Europe, North Africa and South America, as well as Russia and the Caspian Sea region. The Mittelplate oil field in the North Sea tidal flats is the cornerstone of the Company�� oil production in Germany. Wintershall and RWE-D! EA each h! old a 50% interest in this field. During the year ended December 31, 2009, it acquired 25% interest in Cuxhaven concession. It operates 26 offshore platforms in Mittelplate region, of which 19 are actually controlled. In Libya, Wintershall operates eight onshore oil fields in the concessions 96 and 97 and exploits the associated gas released during crude oil production in a gas utilization plant for the local demand. In Mauritania, it operates two onshore exploration blocks. In 2008, Wintershall acquired stakes of 50% each in two exploration areas in the Canadon Asfalto Basin. It supplies Germany and several other European countries. The gas pipeline network operated by WINGAS TRANSPORT connects the markets in Western Europe with a natural gas infrastructure that runs through Eastern Europe and the Russian Federation all the way to the gas fields in Siberia. Other components portfolio include natural gas storage facility in Western Europe, in Rehdn, Germany, and the natural gas storage facility in Haidach, Austria.

Advisors' Opinion:
  • [By Markus Aarnio]

    BioAmber expects its advanced bio-based specialty chemicals to compete with petrochemical equivalents that are proven in the market and manufactured by established companies, such as Gadiv Petrochemical Industries, Kawasaki Kasei, DSM (RDSMY.PK) and numerous small Chinese producers including Anqing Hexing Chemical, and Anhui Sunsing Chemicals. In addition, BioAmber's products will compete against other companies in the bio-based specialty chemical industry, both early stage companies, such as Genomatica (for bio-based 1,4 BDO) and Myriant Corporation (for bio-succinic acid), and established companies, such as a collaborative venture between DSM and Roquette Frères S.A. and a collaborative venture between BASF (BASFY.PK) and Purac (both for bio-succinic acid).

Who Are the World's 2nd Best CEOs?

Once you get the hang of it, it's pretty easy to dissect balance sheets, income, and cash flow statements. This is the first step in getting your feet wet in the investment world.

But it doesn't stop there. If we were to base investing decisions solely on what we read in these statements, that would be akin to picking a significant other based solely on their Facebook profile -- to many, it just doesn't make sense to avoid real-life interaction.

Investigating these "soft" aspects of a company is important for investors. And although we can't capture all of the intangibles of a company in one article, Glassdoor.com -- a website that collects employee sentiment for companies across the world -- recently came out with a list that could help: the Top CEOs of 2013.

Over the past few days, I've covered CEOs 25 through 3. Today, I'm going to introduce you to the company with the second-highest-rated CEO, give you some background on the company, and at the end, I'll offer access to a special free report on who is going to win the war between the five biggest tech stocks.

SAP (NYSE: SAP  )
You may have seen commercials for this giant German company before, but maybe you still don't understand what it does. In the most basic sense, SAP designs software that allows all the groups that are involved with putting a product or service out -- supply chain managers, sub-contractors, marketers, etc. -- to communicate on a common platform.

In today's global economy, having a set software across a whole company is important, as it makes geographically and intellectually disparate parts of a company communicate effectively with one another.

Without a doubt, SAP is not the only company in the world that provides this type of service. It can count other behemoths like Microsoft (NASDAQ: MSFT  ) and Oracle (NYSE: ORCL  ) among its competitors, too.

A key differentiator, however, is that a company like Microsoft has a number of different irons in different fires -- like search and even gaming. And Oracle also focuses heavily on software outside of just the niche area of enterprise resource planning, or ERP. This means that SAP has the advantage of being slightly more focused on its goal of providing the best ERP experience possible.

This helps explain why SAP has a 22% market share in ERP, followed by Oracle at 15%, and Microsoft Dynamics at 10%. 

Co-leaders to guide the way
Unlike all of the other companies on this list, SAP is led by not one, but two CEOs. Bill McDermott has held his title as CEO since joining Jim Hagemann Snabe in February 2010. McDermott joined the company in 2002 as the director of the company's Americas and Asia-Pacific regions. 

Snabe was appointed at the same time as McDermott, but has been with the company since 1990, working his way up from sales and consulting roles all the way to the executive suite.

Together, they have put together a company that has increased revenue by 11.3% and earnings by 9.1% per year.

SAP Revenue TTM Chart

SAP Revenue TTM data by YCharts.

While that might be impressive, its worth noting that this year, SAP's employees not only gave their co-CEOs a 99% approval rating, but the company was also rated one of the top 50 places to work in 2013.

One of the reasons these two may have received such rave reviews is because of the benefits and flexibility the company offers its employees. Being a global company, neither CEO is interested in micromanaging, instead allowing small and diverse teams to function in different parts of the world to meet local needs.

As McDermott told Leaders magazine recently: "While the workforce may be over 60,000, they're in small teams located all over the world. For example, we're innovating in China for China. ... We have innovation labs in all of the BRIC countries." 

While recognizing quality leadership is important, it's worth noting that since 2013 began, the approval rating for these two has slipped somewhat, from 99% to 95% -- which would have given them a more modest ranking somewhere between fourth and and ninth.

Either way, you can't make an investment decision based on one ranking alone. This is just a starting place to explore if SAP is right for your portfolio.

Who will win this technology war?
It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" , and if SAP is one of those stocks, in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

"Evil Dead" Tops Weekend Box Office

In its debut weekend, Sony's (NYSE: SNE  ) horror film Evil Dead ranked as the top-grossing film at the domestic box office with sales of $26 million.

The movie, a reboot of the classic Evil Dead franchise, pulled in an additional $4.5 million internationally to record more than $30 million in sales in its first weekend in theaters, according to data from media measurement firm Rentrak.

The film managed to beat out stiff competition for the top domestic spot. Action film G.I. Joe: Retaliation, distributed by Viacom (NASDAQ: VIA  ) subsidiary Paramount Pictures, tied for second domestically with the animated film The Croods; each film recorded $21.1 million in weekend revenues. It was The Croods' third week and G.I. Joe's second.

G.I. Joe topped the worldwide box office this past weekend, recording more than $61 million across the globe, while The Croods, distributed by News Corp. (NASDAQ: FOX  ) subsidiary 20th Century Fox, managed a close second worldwide with $55 million in sales.

link

U.S. Consumers Continue to Pay More for Milk and Beef

The U.S. Department of Agriculture (USDA) released its preliminary report on March farm prices Friday afternoon. The all-products price index rose by 5 points month-over-month (4.7%) to 111, with the crop index up 2.2% and the livestock index up 5%. The preliminary March all-products index is up 0.9% year-over-year. The index uses prices from 2011 as its base value (100).

The USDA noted that March's higher prices for broilers, hogs, corn and cattle offset lower prices for eggs, grapefruit, and sunflowers. Prices paid by farmers in the month remained flat at 107 for the second consecutive month, but are up 1 point compared with March 2013.

Both corn and wheat prices are significantly lower than they were a year ago. The big increases in farm prices have come in dairy and meat, both of which are sharply higher than they were a year ago. Dairy prices rose 1.6% in March and are now 33% higher than they were a year ago. Prices for pork and beef are up 5% month-over-month and 21% compared with March 2013.

Milk prices continue to rise the most. The March price of $25.40 per hundredweight is up $6.30, or nearly 33%, compared with the price in March 2013. The price is also up $0.50 month-over-month.

Prices for fed cattle posted a record high of $152.26 per hundredweight on Thursday, up $2.16 in a week and $24.50, or 19%, in a year. The short version of the story is that demand for beef is simply outstripping supply. Partly that's due to exports and partly that's due to the impact of the herd culling that went on a year or so ago.

The pig population has been hit with virus that could reduce the crop by as much as 3%, sending pork prices even higher than sky-high beef prices.

Here is how some agriculture-related ETFs are closed the week:

The Market Vectors Agribusiness ETF (NYSEMKT: MOO) closed the week up 1.8%. Shares closed on Friday up 0.77% at $53.93 in a 52-week range of $48.75 to $55.29.

The PowerShares DB Agriculture fund (NYSEMKT: DBA) traded up 2.17% for the week and closed on Friday at $28.43, in a 52-week range of $24.04 to $28.95. Shares posted an intraday high of $28.95 on March 13.

The Teucrium Corn Fund (NYSEMKT: CORN) closed Friday down 0.97% for the day but up about 1.5% for the week. The fund's 52-week range of $29.50 to $43.00. That high price set last June and the trend on corn prices was down through the rest of last year and are down 17.7% over the past 12 months. Prices began to trend upward in January and are now up 10% year-to-date

The Teucrium Wheat Fund (NYSEMKT: WEAT) closed down 2.43% on Friday to finish the week at $16.47. For the week the fund was up 0.8%. The 52-week range is $13.31 to $19.50. Like corn, the price is up more than 12% since the beginning of the year and down 10.5% over the past 12 months. This fund trades averages just 41,000 shares traded in a day, but nearly tripled that on Friday, when wheat prices fell more than 2% on the CBOT to close at $6.955 a bushel.

 

3/29/2014

'Fast Money' Recap: Looking for the Upside

NEW YORK (TheStreet) -- The S&P 500 closed higher by 0.46% on Friday. 

On CNBC's "Fast Money" TV show, Tim Seymour, managing partner of Triogem Asset Management, said the S&P 500 is only 2% off its highs despite many individual momentum stocks doing much worse lately. He said financial and industrial stocks have upside. 

Pete Najarian, co-founder of optionmonster.com and trademonster.com, pointed out the S&P 500 and the CBOE Volatility Index (VIX.X) are essentially unchanged from one month ago. He suggested that if momentum stocks begin to rebound the broader market could move significantly higher. 

Brian Kelly, founder of Brian Kelly Capital, said the market should have an easier time rallying as geopolitical issues and international growth concerns begin to diminish. Guy Adami, managing director of stockmonster.com, said equities will be able to move higher if the financials sector goes higher, and if industrial and transport stocks can bottom out. Tesla Motors (TSLA) bounced 2.5%. Seymour said he was not a buyer based on forward valuation.  Kelly was a buyer of Tesla, saying investor optimism over the company's future is strong, which is a reason to buy in the short term. Najarian said investors who are long Tesla could purchase put options as a hedge against a price decline. 

Adami said to buy General Motors (GM) with support at $34.  Najarian found a bullish options trade in Yahoo! (YHOO) where someone purchased 15,000 of the June $40/$45 bull call spreads. He added that the stock is not overvalued at current levels.  Kelly said Cisco Systems (CSCO) has a low valuation, solid dividend and is making a push into the cloud business, which has higher growth.  Colin Gillis, director of research and senior tech analyst at BGC Financial, was a guest on the show. He has a sell rating on BlackBerry (BBRY) with an $8 price target. He said CEO John Chen is good at turning around companies and is doing a good job so far at BlackBerry. However, the company continues to experience declining revenue, which fell 62% year over year.

Gillis said the stock has upside potential but it is dependent on the company turning around its core business. Only time will tell, he said, but BlackBerry is at least focusing on physical keyboards and its enterprise customers again.  Kelly called Facebook (FB) a "mini Google (GOOG)," and said he likes the stock. He added that shares traded well near the $60 level.  Connor Storck, a student at the University of Detroit Jesuit High School, was a guest on the show. He was a buyer of Netflix (NFLX) due to the company's original programming, high acceptance from the younger generation and its streaming efforts. He was also a buyer of Cisco because of its advances in the cloud. He was a seller of MannKind (MNKD). -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell

Follow TheStreet.com on Twitter and become a fan on Facebook.

Stock quotes in this article: VIX.X, TSLA, GM, YHOO, CSCO, BBRY, FB, GOOG, NFLX, MNKD 

3/28/2014

Top 5 Retail Stocks To Invest In Right Now

Consumer-facing retailers haven't had the best start to 2013. The expiration of the payroll tax holiday, coupled with an extra chilly spring, kept many shoppers out of store checkout lines.

Target (NYSE: TGT  ) stock wasn't immune to those pressures. The retailer posted a 0.6% drop in comparable sales vs. a 5.3% rise a year ago. Target called the results "disappointing," while slicing its sales and earnings guidance for the rest of the year.

Source: Target.

However, there are some important numbers moving in Target's direction right now. It is succeeding in boosting customer loyalty and in its expansion into Canada. Those strategies could be setting up the company -- and the stock -- for big future gains.

Seeing red
Take Target's loyalty card. The percentage of sales that were made by members of its Red Card program leapt to 17.1%, from 11.6% in the year-ago period. Sure, that's a far cry from the 33% of U.S. transactions that Starbucks (NASDAQ: SBUX  ) books through its loyalty program. But it's a good start. Considering that Starbucks credits its rewards card with helping it notch industry-leading sales growth, Target is moving in the right direction. As the coffee king knows, rewards members tend to be more engaged shoppers.

Top 5 Retail Stocks To Invest In Right Now: SK3 Group Inc (SKTO)

SK3 Group, Inc. (SK3), formerly CTT International Distributors Inc., is a development-stage company. The Company was formed by the merger of Slabsdirect.com, Inc. and CTT International Distributors Inc. SK3 has one subsidiary, CTT Distributors Ltd., which is the operating company. SK3 is in the e-commerce business and provides non-branded computer and electronic merchandise at discount prices to the Internet consumer through its Website www.cheaperthanthem.com. The Website is hosted by Ezyra E-Business Services, an unrelated party, which charges SK3 an annual fee to host the Website. In December 2009, Healthcare of Today, Inc. acquired controlling interest in the Company. In December 2009, the Company acquired NuvoDigital Technology, Inc., a data security technology firm based in Salt Lake City. In addition, in December 2009, the Company's parent company Healthcare of Today, Inc. acquired Xenotis Pty Ltd. In February 2011, the Company acquired PRN Registry. In March 2011, the Company completed the acquisition of HealthStaff Training Institute. In March 2011, the Company acquired W&M Medical Management, Inc. Effective March 14, 2013, the Company acquired Medical Greens, a provider of medical logistics services.

SK3 has a direct business, in which it buys and takes possession of excess electronic and computer inventory for resale (Direct Business). In addition, SK3 has a fulfillment partner business, in which SK3 facilitates the sale of merchandise of other retailers, cataloguers or manufacturers (Fulfillment Associates) through the Website (Fulfillment Business). For both the direct business and fulfillment business, SK3 has developed a consumer and a wholesaler sales channel.

SK3�� Direct Business involves buying and taking possession of inventory for resale. The Company offers moving picture experts group layer-3 audio (MP3) players and a frequency modulation (FM) transmitter accessory for MP3 players on the Website. SK3 seeks to become an online retailer offering non-b! randed electronic and computer merchandise for sale over the Internet. SK3�� Fulfillment Business sells merchandise of Fulfillment Associates through the Website. SK3 manages the orders collected for the Fulfillment Associates through the Website and forwards the orders on to the Fulfillment Associate, who then fills the order. The Fulfillment Associates perform essentially the same operations as a warehouse: order picking and shipping.

Advisors' Opinion:
  • [By James E. Brumley]

    Truth be told, it's not clear if SK3 Group Inc. (OTCMKTS:SKTO) is best described when compared to a name like Cerner Corporation (NASDAQ:CERN), or to a Gentiva Health Services, Inc. (NASDAQ:GTIV). The company's got elements of both major industries being represented by CERN and GTIV (home health care, and information technology), with the addition of another budding industry thrown into the mix. One thing IS clear though... SKTO shares have decidedly reversed a nasty downtrend, and may now be one of the market's best small cap healthcare speculative trades.

Top 5 Retail Stocks To Invest In Right Now: Yum! Brands Inc.(YUM)

YUM! Brands, Inc., together with its subsidiaries, operates as a quick service restaurant company in the United States and internationally. It develops, operates, franchises, and licenses a system of restaurants, which prepare, package, and sell various food items, as well as operates Chinese casual dining concept restaurants. The company?s restaurants specialize in chicken, pizza, and Mexican-style food categories. It operates approximately 37,000 restaurants in 110 countries and territories under the KFC, Pizza Hut, and Taco Bell brands, as well as approximately 450 casual dining concept restaurants in China. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to YUM! Brands, Inc. in May 2002. YUM! Brands, Inc. was founded in 1997 and is headquartered in Louisville, Kentucky.

Advisors' Opinion:
  • [By Ben Levisohn]

    Darden’s shares dropped 0.6% to $54.01 today, even as McDonald’s (MCD) gained 0.3% to $96.54, Yum! Brands (YUM) rose 0.2% to $74.10 and Chipotle Mexican Grill (CMG) advanced 0.4% to $533.11.

  • [By Michael Calia]

    Yum Brands Inc.(YUM) said its fourth-quarter profit slipped 4.7%, but the parent company of KFC, Taco Bell and Pizza Hut said it is making progress in its efforts to bolster flagging KFC sales in China. Shares climbed 5.2% to $69.60 premarket.

  • [By Rick Aristotle Munarriz]

    Alamy Fried chicken and waffles is a staple menu item at countless soul food and comfort food restaurants, but that's not stopping Burger King (BKW) from trying to give the meal a fast-food spin. Burger King is testing a new sandwich in the Northeast that takes the breaded chicken patty used in its Classic Crispy Chicken Sandwich from its King Deals Value Menu and replaces the bun with a split waffle. Burger King's Chicken & Waffle Sandwich isn't as hearty as the meal that it's based on. It's selling for as little as $2.29. But the chain's latest attempt to turn heads with a unique menu item will at least attract curious nibblers if it does decide to broaden the offering across the country. Waffling About Burger King isn't the first popular chain to attempt to reinvent this classic dish. As Nation's Restaurant News points out, last summer, Popeyes Louisiana Kitchen (PLKI) offered Chicken Waffle Tenders -- consisting of chicken tenders dipped in a vanilla maple-scented waffle batter, served with a honey maple dipping sauce. DineEquity's (DIN) IHOP did it three years ago by combining its chicken strips with Belgian waffle quarters. Yum! Brands (YUM) tried to breathe new life into its breakfast business last summer by testing a Waffle Taco -- an egg, sausage, and waffle breakfast sandwich. Even if it doesn't succeed -- and some of the early taste tests haven't been very flattering to the chain's new sandwich -- it's at least comforting to see that Burger King isn't just copying McDonald's (MCD) the way that it has for the past couple of years. Burger King followed McDonald's in offering fancy coffee drinks, fresh fruit smoothies, and popcorn chicken. It has gone on to roll out doppelgangers of the Egg McMuffin and McRib sandwiches. In November, it introduced the Big King, which any patron will quickly recognize as a body double to the Big Mac. Then again, it's not as if following McDonald's lead is such a clever idea right now. The world's largest re

  • [By Katie Spence]

    As you can see, leisure and hospitality make up 34%. Most of those jobs are in restaurants and other food services -- like McDonald's (NYSE: MCD  ) , Chipotle Mexican Grill (NYSE: CMG  ) , Yum Brands' (NYSE: YUM  ) Taco Bell, and Starbucks (NASDAQ: SBUX  ) . Consequently, if the Fair Minimum Wage Act is passed, it'll have the biggest impact on fast-food and restaurant companies.

Best Asian Stocks To Own Right Now: AutoNation Inc (AN)

AutoNation, Inc. (AutoNation), incorporated on May 30, 1991, is an automotive retailer in the United States. As of December 31, 2011, the Company had three operating segments: Domestic, Import, and Premium Luxury. As of December 31, 2011, it owned and operated 258 new vehicle franchises from 215 stores located in the United States, predominantly in metropolitan markets in the Sunbelt region. Its stores sell 32 different brands of new vehicles. The core brands of vehicles that it sells, representing approximately 90% of the new vehicles that it sold during the year ended December 31, 2011, was manufactured by Ford, Toyota, Nissan, General Motors, Honda, Mercedes-Benz, BMW, and Chrysler. The Company offers a diversified range of automotive products and services, including new vehicles, used vehicles, parts and automotive repair and maintenance services , and automotive finance and insurance products, which includes the arranging of financing for vehicle purchases through third-party finance sources. The Company retailed approximately 400,000 new and used vehicles through its stores in 2011. It acquired one automotive retail franchise and related assets during 2011.

Domestic segment consists of retail automotive franchises that sell new vehicles manufactured by General Motors, Ford, and Chrysler. Its Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, and Nissan. Its Premium Luxury segment is consists of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, and Lexus. The franchises in each segment also sells used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products. For the year ended December 31, 2011, Domestic revenue represented 34% of total revenue, Import revenue represented 37% of total revenue, and Premium Luxury revenue represented 28% of total revenue. Corporate and other is consist of its other businesses, incl! uding collision centers, e-commerce activities, and an auction operation, each of which generates revenues, as well as unallocated corporate overhead expenses and retrospective commissions for certain financing and insurance transactions that it arranges under agreements with third parties.

The Company�� stores acquires vehicles for retail sale either directly from the applicable automotive manufacturer or distributor or through dealer trades with other stores of the same franchise. it acquires used vehicles from customer trade-ins, auctions, lease terminations, and other sources. It recondition used vehicles acquired for retail sale at its stores��service facilities and capitalize costs related thereto as used vehicle inventory. Through its VVOs, which are located on existing store facilities, it sells vehicles that it would have traditionally wholesaled with an average retail price lower than that of used vehicles it typically retail. Used vehicles that the Company do not sell at its stores or VVOs generally are sold at wholesale prices through auctions.

The Company offers a variety of automotive finance and insurance products to its customers. The Company arranges for its customers to finance vehicles through installment loans or leases with third-party lenders, including the vehicle manufacturers��and distributors��captive finance subsidiaries, in exchange for a commission payable to the Company. It also offers its customers various vehicle protection products, including extended service contracts, maintenance programs, guaranteed auto protection (GAP, this protection covers the shortfall between a customer�� loan balance and insurance payoff in the event of a casualty), tire and wheel protection, and theft protection products. The vehicle protection products that its stores offers to customers are underwritten and administered by independent third parties, including the vehicle manufacturers��and distributors��captive finance subsidiaries. The Company sells t! he produc! ts on a straight commission basis; however, it also participate in future underwriting profit for certain products pursuant to retrospective commission arrangements. Commissions that it receives from these third-party providers may be subject to chargeback, in full or in part, if products that it sells, such as extended service contracts, are cancelled. Its stores also provide a range of vehicle maintenance, repair, paint, and collision repair services, including warranty work that can be performed only at franchised dealerships and customer-pay service work. The Company has entered into framework agreements with vehicle manufacturers and distributors. It operates each of its new vehicle stores under a franchise agreement with a vehicle manufacturer or distributor.

Advisors' Opinion:
  • [By StreetAuthority]

    Gabriel Bouys, AFP/Getty ImagesBill Gates, Microsoft co-founder and co-chair of the Bill & Melinda Gates Foundation. $650 million is a lot of money -- even for Bill Gates. That's how much his investment firm has invested in what might be considered the best way to play China. It's not a software firm or even a computer hardware firm. It's mining giant Caterpillar (CAT). Gates started building a position in Caterpillar before the financial crisis, but he became a very aggressive buyer once the crisis hit and shares had fallen by half. Yet remarkably, Gates has kept on buying, even as shares steadily rebounded to previous peaks. But now that Caterpillar has come under pressure on concerns that China is slowing, is Gates locking in profits? No, he's been buying more, picking up another 500,000 shares in this year's second quarter. At current prices, his firm's stake of 10.76 million shares is worth a cool $650 million. The key question: Why does Gates continue to buy shares even after China's slowdown has signaled the potential end of a global commodities boom? After all, much of Caterpillar's growth in recent years has come from a strong surge in mining activity that uses the company's massive excavators. The simple answer is that Gates and his team of investment managers always focus on long-term winners and never buy or sell shares based on short-term economic shifts. We've seen him do it many times before. For example, even as Wall Street analysts focused on the near-term prospects for auto retailer AutoNation (AN), Gates saw an epic rebound coming, as I noted in this article. Shares of AutoNation have now risen 400 percent since early 2009. Caterpillar: The Long View

  • [By tonyg34]

    In a recent interview right here on GuruFocus, Tom Gayner of Markel (MKL) had a few things to say about CarMax (KMX). This prompted me to give the company a closer look. What follows is a business analysis. We will save considerations of stock analysis, such as price, for a later discussion.

    I think that is a business that will continue to grow. I don't see any reason why you can't have a Carmax in a lot of towns way beyond what they're talking about right now. I think being the number one dealer, and having the number one market share in used car arena gives you great information on what transaction prices are. Then you work on the process to be as quick and as cost efficient in fixing the car and getting it sold, and have the confidence from customers when you offer warranties on the products. Those factors create a virtuous cycle. The more you do, the more you can do, the better the pricing is, the more the customers like you, the more your brand matters. The company will be around for a good long time. The management has done a very good job of creating the system and executing it.
    CarMax was formed as a unit of Circuit City in 1993 and was spun off in 2002. Used-car sales account for about 80% of revenue. Competitors include, but certainly are not limited to, AutoNation (AN) and America's Car-Mart (CRMT) as well as private party sellers.

  • [By MONEYMORNING]

    From a high-tech standpoint, AutoNation Inc. (NYSE: AN) ranks as an intriguing hybrid play.

    To be sure, it is heavily rooted in the physical world. After all, the company operates some 267 auto dealerships around the United States, making it the industry's largest new-car retailer.

  • [By Monica Wolfe]

    Over the past week Lampert reduced his stake in AutoNation (AN). The guru cut his holdings by -3.68% by selling a total of 1,131,093 shares. He sold these shares at an average price of $47.50, and the price is now trading up 4%. Lampert now holds on to 29,576,404 shares, representing 24.37% of the company�� shares outstanding.

Top 5 Retail Stocks To Invest In Right Now: Macy’s Inc (M)

Macy�s, Inc., together with its subsidiaries, operates stores and Internet Websites in the United States. Its retail stores and Internet Web sites sell a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. The company also operates Bloomingdale�s Outlet stores that offer a range of apparel and accessories, including ready-to-wear, shoes, fashion accessories, jewelry, handbags, and intimate apparel products. As of January 28, 2012, it operated approximately 840 stores under the names of Macy�s and Bloomingdale�s; and 7 Bloomingdale�s Outlet stores, as well as macys.com and bloomingdales.com. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy�s, Inc. in June 2007. Macy�s, Inc. was founded in 1820 and is based in Cincinnati, Ohio.

Advisors' Opinion:
  • [By Douglas A. McIntyre]

    The double-digit drop in same-store sales has triggered a double-digit drop in revenue. J.C. Penney management has not developed the wisdom to shutter dozens of its underperforming stores, which outsiders find amazing. To lure shoppers who have departed for Macy’s (NYSE: M), Target (NYSE: TGT) and another dozen retailers, there is not a single thing J.C. Penney can do — unless it wants to give merchandise away.� Rarely discussed is that J.C. Penney’s drop in online sales is sharper than the one in bricks-and-mortar. That data is buried in J.C. Penney’s press releases and SEC filings. In a world in which Amazon.com Inc. (NASDAQ: AMZN) continues to grow at a monstrous pace, Internet sales have become a barometer of a retailer’s future. In this department, J.C. Penney has none.

  • [By Natalie O'Reilly]

    Investors could not be more thrilled with Macy's (NYSE: M  ) fourth-quarter and fiscal-year 2013 performance. Macy's took to the runway with style and sophistication, as it far exceeded analysts' earnings-per-share estimates. According to Yahoo! Finance, Macy's actually secured its "fifth consecutive year of double digit earnings growth."

Top 5 Retail Stocks To Invest In Right Now: AutoCanada Inc (ACQ)

AutoCanada Inc. (AutoCanada) is a multi-location automobile dealership groups. As of December 31, 2011, the Company operated 24 franchised dealerships in British Columbia, Alberta, Manitoba, Ontario, New Brunswick and Nova Scotia. During the year ended December 31, 2011, its dealerships sold approximately 28,000 vehicles and processed approximately 300,000 service and collision repair orders in its 333 service bays. As of December 31, 2011, it was authorized to sell through its dealerships the vehicle brands, which include Chrysler, Dodge, Jeep, Ram, Fiat, Hyundai, Nissan, Infiniti, Volkswagen, Mitsubishi and Subaru. In addition, it sells a range of used vehicles. In November 2011, the Company acquired assets of two dealerships. In January 2013, the Company purchased the assets of a Volkswagen dealership known as People's Automotive Ltd. Advisors' Opinion:
  • [By Greg Quinn]

    AutoCanada Inc. (ACQ), the country�� largest publicly traded chain of car dealerships, is using sales of trucks to Alberta oil workers to fund higher dividends and buy out competitors.

3 Stocks Spiking on Big Volume

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

>>5 Stocks With Big Insider Buying

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

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

>>5 Hated Earnings Stocks You Should Love

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

MEI Pharma

MEI Pharma (MEIP), a development-stage oncology company, focuses on the clinical development of therapeutics for the treatment of cancer. This stock closed up 3% at $10 in Wednesday's trading session.

Wednesday's Volume: 190,000

Three-Month Average Volume: 136,021

Volume % Change: 50%

From a technical perspective, MEIP spiked notably higher here with above-average volume. This stock recently pulled back from its high of $11.63 to its low of $9.15. That low corresponded with MEIP's 50-day moving average and since that pullback shares of MEIP have started to rebound a bit. That rebound is starting to push shares of MEIP within range of triggering a near-term breakout trade. That trade will hit if MEIP manages to take out some near-term overhead resistance levels at $10.53 to $10.75 with high volume.

Traders should now look for long-biased trades in MEIP as long as it's trending above $9.50 or above its 50-day moving average of $9.05 and then once it sustains a move or close above those breakout levels with volume that hits near or above 136,021 shares. If that breakout hits soon, then MEIP will set up to re-test or possibly take out its next major overhead resistance levels at $11.63 to its 52-week high of $12.45.

Netflix

Netflix (NFLX) provides Internet television network service that enables subscribers to stream TV shows and movies directly on TVs, computers and mobile devices in the U.S. and internationally. This stock closed up 0.39% to $372.28 in Wednesday's trading session.

Wednesday's Volume: 3.47 million

Three-Month Average Volume: 2.92 million

Volume % Change: 50%

From a technical perspective, NFLX bounced modestly higher here right above its recent low of $365.75 with above-average volume. This stock has been absolutely destroyed by the sellers over the last few weeks, with shares plunging sharply lower from its high of $458 to its low of $365.75. During that move, shares of NFLX have been consistently making lower highs and lower lows, which is bearish technical price action. That move has now pushed shares of NFLX into oversold territory, since its current relative strength index reading is 24. Oversold can always get more oversold, but it's also an area where a stock can rebound sharply higher from.

Traders should now look for long-biased trades in NFLX as long as it's trending above its recent low of $365.75 and then once it sustains a move or close above Wednesday's high of $377.45 to more resistance at $384.93 with volume that hits near or above 2.92 million shares. If we get that move soon, then NFLX could rebound higher towards $400 or even its 50-day moving average of $412.07.

Baxter International

Baxter International (BAX) develops, manufactures and markets products for people with hemophilia, immune disorders, infectious diseases, kidney diseases, trauma and other chronic and acute medical conditions. This stock closed up 2.4% at $70.08 in Wednesday's trading session.

Wednesday's Volume: 8.16 million

Three-Month Average Volume: 3.11 million

Volume % Change: 146%

From a technical perspective, BAX ripped higher here right above its 200-day moving average of $68.12 with heavy upside volume. This spike pushed shares of BAX into breakout territory, after the stock took out some near-term overhead resistance levels at $68.64 to $69.65. Shares of BAX also flirted with some more resistance at $70.24 before the stock closed just below that level at $70.08. Market players should now look for a continuation move higher in the short-term if BAX manages to take out Wednesday's high of $70.75 with strong volume.

Traders should now look for long-biased trades in BAX as long as it's trending above Wednesday's low of $68.39 or above its 50-day at $68.09 and then once it sustains a move or close above $70.75 with volume that's near or above 3.11 million shares. If we get that move soon, then BAX will set up to re-test or possibly take out its next major overhead resistance levels at $72 to $73.01, or even its 52-week high at $74.60. Any high-volume move above $74.60 will then give BAX a chance to tag $80.

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

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>3 Hot Stocks to Trade (or Not)



>>Beat the S&P With the Stocks Everyone Else Hates



>>5 Big Tech Stocks to Trade for Gains

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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


3/27/2014

New Mars Chocolate Plant Proof of Americans' Sweet Tooth

New Candy Plant Orlin Wagner/APThe entrance of the new Mars production facility near Topeka, Kan. TOPEKA, Kan. -- Americans aren't losing their taste for chocolate. Need proof? Look to Kansas, where candy giant Mars Inc. is opening its first new plant in 35 years to churn out millions of chocolate bars and other sweets every day. Company officials are throwing a grand opening Thursday for the sprawling, $270 million chocolate plant -- which they say exists mostly to meet U.S. demand for its M&M's- and Snickers-brand candy. The plant, built south of Topeka, will be able to produce 14 million bite-sized Snickers each day, as well as 39 million M&M's, enough to fill 1.5 million fun-sized packs. "It's just unbelievable, the production," said Topeka Mayor Larry Wolgast, who keeps a dispenser of peanut M&M's on his desk at City Hall. It's a sweet deal for state and local officials, too. The 500,000-square-foot facility is bringing about 200 jobs to the Topeka area, and the company plans to open a store downtown for several weeks. Local officials, who will join the company at the grand opening, also are earning the right to brag that Topeka's work force, central location and accessible site enabled the region to win the plant over several dozen other communities. Kansas Gov. Sam Brownback, who favors almond M&M's, sees it as fitting that many Americans will get their favorite snacks from the Heartland. Matt Hudak, who follows the U.S. market for "impulse" foods as an analyst for market researcher Euromonitor International, said candy makers can expect to see annual growth in chocolate sales stay above 3 percent, making chocolate "a continual bright spot." He also said Mars has been good at introducing new products, such as pretzel M&Ms and bite-sized Snickers to keep consumers interested. Even in uncertain economic times, he said, chocolate remains an "affordable luxury." "There is little reason to suggest that, all of a sudden in the U.S., people will start to dislike chocolate," he said. The new chocolate factory is a sign that Mars officials are well aware of the trend and are bullish about future sales. "We have been growing, and we see future growth," Debra Sandler, president of Mars Chocolate North America, said in an interview ahead of the opening. "We need the capacity." The company's New Jersey-based chocolate unit, Mars Chocolate, has 16,000 employees in 21 countries. It produces 29 brands that include M&Ms and Snickers, which it says are billion-dollar brands, but also Milky Way, Twix and 3 Musketeers. Family owned Mars Inc. also has its Wrigley division, which produces gum, hard candies and chewy candies. It also has non-candy food products, produces pet foods and runs pet hospitals. Before the Kansas facility was built, the company's last new plant in North America was in Cleveland, Tenn.

InterCloud Systems (ICLD) Stock Continues To Decline In Aftermarket Trading

NEW YORK (TheStreet) -- Intercloud Systems Inc.  (ICLD) shares were down 2.4% to $7.20 in aftermarket trading Wednesday, following a precipitous drop for the telecom infrastructure company throughout the day.

The stock closed down 7.5% during the day after three separate law firms sent out press releases stating that they were filing lawsuits against the company on behalf of shareholders. Levi & Korinsky, LLP's lawsuit alleges that InterCloud "made materially false and misleading statements and/or omitted materially adverse facts regarding the company's business, operations, and prospects."

According to the complaints, InterCloud hired a promotional firm, The Dream Team Group (DTG), to promote the stock after the company's IPO. "DTG, along with its affiliates and other third parties, published articles touting the company's stock without disclosing that they were paid promoters for the company, a violation of Section 17(b) of the Securities Act of 1933," law firm Rigrodsky & Long, PA said.

Must Read: Warren Buffett's 10 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.  

Stock quotes in this article: ICLD 

Watch Out, Investors: 'Candy Crush' IPO May Rot Your Teeth

Candy Crush Game Maker King Announces IPO to List in New York Andrew Harrer/Bloomberg via Getty Images "Candy Crush Saga" fans know that it's not always easy to find the right match, but that's not stopping its developer King Digital Entertainment from hoping that it's the right match for investors. The mobile game-maker's IPO finally hits the market Wednesday, and it's easy to see why there isn't a lot of consensus as to where King's stock will go after its Wall Street debut. Bears can point to Zynga (ZNGA), the game giant behind "FarmVille," "Words with Friends" and "Draw Something" that went public with a market cap of $8.9 billion three years ago. It fell out of favor once its hottest games began fading in popularity, leaving Zynga with cascading revenue and bookings as its new releases failed to captivate players. If Zynga stumbled with so many hit franchises, what can investors expect out of King, which is really riding on the success of a single game that wasn't even around two years ago? King's Sticky-Sweet Success So Far Investors angling to get in on this week's IPO will see things differently than the naysayers. Yes, King is a one-trick pony, but it's a heck of a trick. The sticky success of "Candy Crush Saga" -- a free-to-play game where players can pay up for extra moves and to expedite the opening of new levels -- finds King generating a lot more money than Zynga did at its 2012 peak. King's gross bookings skyrocketed from $181.6 million in 2012 to nearly $2 billion last year. Zynga never got that high. Its gross bookings topped out two years ago at $1.15 billion before plunging to $716 million last year. King's also been consistently profitable since "Candy Crush Saga" was introduced 23 months ago. Zynga can't say that. Bulls will also point out that even at the high end of its pricing range, King's initial market cap will be less than Zynga at the time of its 2011 IPO. The sheer success of "Candy Crush Saga" can't be ignored. It drew 93 million daily active players for the month of December, and those users played an average of 1.085 billion games a day. Across its entire portfolio of diversions, King attracted 128 million players for the month. These are impressive metrics, but the bearish argument also packs a pretty fierce bite. Good Timing on the IPO The biggest thing that could keep King's IPO in check is that it's already showing signs of peaking. Quarterly revenue, gross bookings, earnings, adjusted earnings and monthly unique payers all fell from the third quarter of last year to the fourth quarter. It's not a seasonal thing. King's one-trick pony -- a stallion, if you will -- may have peaked late last summer. We won't know if that's the case until we can sink our teeth into this year's freshman quarter, and that won't come until at least late April. By then the IPO will already have been trading for several weeks. Things don't have to end badly, naturally, but investors are right to be cautious. An initial pop Wednesday could be a head fake. We saw that happen with Zynga which traded above its $10 IPO price for most of the four months following its IPO in late 2011. Then again, Zynga was still growing as a company through most of 2012. King's first quarter report in a few weeks will be critical. The market saw in Zynga what happens when a debutante starts to stumble. A share of Zynga these days won't be enough to buy you a value meal. A lot is riding on the popularity of a single game. Its next most popular offering -- "Pet Rescue Saga" -- attracted just 15 million daily active players, and they played fewer games a day on average than "Candy Crush" crushers. It also doesn't help that "Candy Crush Saga" relies on in-game purchases for nearly all of its revenue. King stopped turning to third-party advertisers several quarters ago, preferring gamers to pay up for perks instead of putting up with ads for free gameplay. This could be a factor because folks hooked on the game aren't just carving out time to play. "Candy Crush Saga" is costing them money. Can It Maintain that Sugar Buzz? King still deserves credit for going where no Zynga has gone before. Yes, it's all riding on one game. King has failed to woo "Candy Crush Saga" players into other diversions despite promoting its other games within "Candy Crush Saga" itself. This isn't really so awful, especially if it's able to exploit its one marquee game into licensing opportunities including toys, merchandise, and even filmed entertainment. Look at "Angry Birds." However, investors need to be cautious here. The valuation is somewhat fair at the starting gate, unlike the bubbly overvalued situation that we saw when Zynga went public. The market's jaded after being burned by Zynga, so it has to be this way. Still, King will have plenty to prove in the coming quarters if it intends to keep its crown.

Unscrambling Your Retirement Nest Egg

Print Friendly

At Investing Daily, we’ve grown increasingly concerned with the national trend toward underfunded retirement plans. For the next few weeks, we'll send you a complimentary series of focused briefs to get you thinking about new ways to maximize performance both inside and outside of a structured 401k or similar plan. We hope you'll find these briefs useful.

This is the fourth installment in a five-part series.

As part of our continuing effort to better serve loyal readers, we’ve answered the latest batch of "frequently asked questions" regarding 401k plans. The questions below run the gamut in sophistication and were posed by novice and seasoned investors alike. Chances are, at least a few of these topics have perplexed you as well.

What are the limits to 401k contributions?

This question is trickier than it seems. You can't just determine the limit and then assume the ceiling is fixed. As with anything that involves the government, the rules continually change and you need to monitor them.

The maximum pretax contribution dollar amount is established by the IRS and annually adjusted for inflation. The pretax contribution limit for 2014 is $17,500.

How much should I contribute?

We advise the maximum, but that's easier stated than done. Not everyone can afford it. Strive for at least 15-20 percent of your income during your earning years.

If your company is generous enough to offer a matching contribution, you should kick in enough to make the most of that match. For example, if your company matches $1.00 up to 10 percent of your contributions, you should contribute at least 10 percent.

Are there different ways in which employers offer a matching contribution?

Yes, your employer can choose among several methods for determining the percentage that it contributes. The most common are a fixed percentage of what you put into the plan; a! predetermined percentage of your pay; and a discretionary percentage that's subject to change according to how your company is performing.

To reiterate: Make it a point to contribute at least the minimum amount required to trigger your company's full match. Otherwise, you're refusing free money!

I'm self-employed. What are my 401k options?

Many people don’t realize that you don’t need to run a large full-time business to benefit from a self-employed retirement plan. Even if you moonlight, work part time, or freelance, self-employed retirement plans offer enormous tax benefits.

In fact, if your cash flow can handle it, you might be able to put 100 percent of your net profit as a self-employed person into a 401k plan—and deduct the money, too. Here’s a look at your options:

Simplified Employee Pension (SEP) Plan.

 If your income from self-employment is relatively small, or if you’re newly self-employed, a SEP is your best bet.

The biggest enticement of a SEP is as its name implies: it’s simple. The IRS treats a SEP just as if it were an Individual Retirement Account (IRA), which means the paperwork to set up a SEP is minimal and, mercifully, the IRS imposes no requirements for annual tax reporting.

Annual contributions to a SEP are discretionary; if you’re hurting for cash one year and need to cut back, you’re free to do so. Moreover, SEP contribution limits are relatively high: 25 percent of net income, up to $52,000 for 2014, which is ample for most people. (The amount is subject to annual cost-of-living adjustments for later years.) Also, another convenience is that you can set up and fund a SEP after the end of the tax year.

Self-employed 401k

Also known as a solo 401k, this alternative involves more paperwork and must be established by December 31. This plan is limited to self-employed business owners with no employees other than a spouse. The major benefit: you can put in considerably more money! every ye! ar than with a SEP.

Self-employed individuals and small business owners that have adopted a solo 401k plan for the 2014 taxable year will be able to make tax-deferral employee and employer contributions of up to $52,000. Those over the age of 50 have a limit this year of up to $57,500.

Annual contributions are discretionary and you can borrow from the plan.

faq























Can I temporarily cease contributions if I can’t afford it, but start up again later?

It depends on your employer. Some allow it; some don't. However, most plans give you the latitude to stop contributing for a while. Check the rules with your HR department.

What are "hardship" withdrawals?

We advise against hardship withdrawals. Your best bet is to bite the bullet and find another source of money for whatever need has arisen. You should treat your 401k as sacrosanct. That's why it was troubling that during the Great Recession, many 401k savers tapped their accounts simply to make ends meet, further exacerbating the retirement crisis that faces America.

But again, that's easy to state and harder to do. Maybe your financial back is against the wall and you have no recourse but to crack your 401k piggy bank. If that's the case, the IRS allows the following reasons for a hardship distribution:

Medical expenses incurred by you, your spouse, children, dependents, beneficiaries beyond what is covered by insurance;Payment of funeral or burial expenses for your spouse, children, dependents, parents, or beneficiaries;Purchase of primary residence;Payment of tuition for post-secondary education for you or your spouse, children, dependents or beneficiaries for the next semester or scholastic period;Prevention of eviction from your primary residence or foreclosure of the m! ortgage o! n your primary residence; andPayment of repair to your primary residence that qualifies for the casualty deduction of Internal Revenue Code Section 165.Check with your HR department for further details.

What are the rules regarding loans from 401k plans?

We advise against taking out a loan against your 401k. But if you urgently need money, this option is available to you, depending upon your employer's rules.

Companies are free to offer loans as part of a 401k plan, but nothing compels them to do so. Your Summary Plan Description or HR department can make this clear for you. Typically, you must repay the loan within five years.

You're allowed to borrow up to 50 percent of your vested account balance to a maximum of $50,000. Plans often establish a minimum amount and restrict the number of loans you can take at any one time. Repayment is usually n the form of installments automatically deducted from your paycheck.

If you leave your job, any unpaid portion of the loan will be calculated as income and be subject to taxation and, if you're under the age 59 1/2, a penalty.

John Persinos is editorial director of the investment advisories Personal Finance and 401k Millionaire, as well as their parent website Investing Daily. Follow John on Twitter.

Stock Talk

We encourage you to engage with our analysts and your fellow subscribers on our website. To ask a question or post a comment related to a particular article, please do so in the Stock Talk field at the bottom of that article.

Or to ask a general question, please go to the main Stock Talk page found under the Resources menu for each publication.