Top Stocks For 2014, Best Stocks To Buy 2014: June 2014

6/30/2014

Stocks Going Ex-Dividend on Tuesday, July 1 (JPM, GD, More)

Ex-dividend dates are very important to dividend investors, since you must purchase a stock prior to its ex-dividend date in order to receive its upcoming dividend payout. For more information, check out Everything Investors Need to Know About Ex-Dividend Dates.

Below we highlight eight big-name stocks going ex-dividend on Tuesday, July 1.

1. Erie Indemnity

Erie Indemnity (ERIE) offers a dividend yield of 3.42% based on Friday’s closing price of $74.21 and the company's quarterly dividend payout of 63.5 cents. The stock is up 2.6%year-to-date. Dividend.com currently rates Erie as “Neutral” with a DARS™ rating of 3,4 stars out of 5 stars.

2. JPMorgan Chase

JPMorgan Chase (JPM) offers a dividend yield of 2.78% based on Friday’s closing price of $57.53 and the company's quarterly dividend payout of 40 cents. The stock is down 1.17% year-to-date. Dividend.com currently rates JPM as “Neutral” with a DARS™ rating of 3.4 stars out of 5 stars.

3. General Dynamics Corporation

General Dynamics Corporation (GD

6/28/2014

Top Portfolio Products: Schroders, Oppenheimer Add Funds

New products and changes introduced over the last week include two mutual funds from Schroders and an emerging markets fund from OppenheimerFunds.

Also, NASDAQ OMX has launched a REIT benchmark-index family, and former Goldman Sachs trader Adam Grealish has launched a financial/tech job search service.

Here are the latest developments of interest to advisors:

1) Schroders Adds Two Funds

Schroders has announced the launch of the Schroder Global Multi-Asset Income Fund (SGMNX) and the Schroder Global Strategic Bond Fund (SGBNX).

SGMNX is a diversified portfolio that seeks to maximize income and manage volatility by investing directly into both equities and fixed income securities around the globe. Its benchmark is unconstrained, which enables the team to be flexible in its search for the best risk-adjusted income opportunities across regions, asset classes and sectors.

SGBNX is an actively managed portfolio with the flexibility to invest in the best opportunities throughout the fixed income universe. It enables investors to invest tactically and strategically across the whole spectrum of global fixed income sectors, regions, asset classes and FX.

2) OppenheimerFunds Adds Emerging Markets Fund

OppenheimerFunds has announced the launch of the Oppenheimer Emerging Markets Innovators Fund (EMIAX). The fund will be comanaged by Justin Leverenz and Heidi Heikenfeld.

The fund, which is country- and sector-agnostic, seeks to outperform the MSCI Emerging Markets Mid Cap Index on an absolute and risk-adjusted basis over a three- to five-year period on a cumulative basis. It will seek opportunities across the following structural growth themes: financial inclusion; logistics, distribution, e-commerce and modern retail; private education and health-care services; and internet media and content.

3) NASDAQ OMX Launches REIT Benchmark Index Family

NASDAQ OMX and ETRE Financial, LLC have announced a new partnership in the REIT benchmark index space, with the launch of 12 cobranded indexes.

The new indexes are: NASDAQ ETRE Composite REIT Index (NQETRE); NASDAQ ETRE Composite REIT Total Return Index (NQETRET); NASDAQ ETRE Healthcare REIT Index (NQETHC); NASDAQ ETRE Healthcare REIT Total Return Index (NQETHCT); NASDAQ ETRE Hospitality REIT Index (NQETH); NASDAQ ETRE Hospitality REIT Total Return Index (NQETHT); NASDAQ ETRE Office REIT Index (NQETO); NASDAQ ETRE Office REIT Total Return Index (NQETOT); NASDAQ ETRE Residential REIT Index (NQETRR); NASDAQ ETRE Residential REIT Total Return Index (NQETRRT); NASDAQ ETRE Retail REIT Index (NQETR); and NASDAQ ETRE Retail REIT Total Return Index (NQETRT).

4) Financial/Tech Job Search Service Launched

Adam Grealish, a former Goldman Sachs vice president, has launched RoleTroll.com, a job recommendation engine for finance and tech jobs. The site uses unstructured data and statistics, collectively known as big data, to match users with jobs based on their unique skills and experiences.

Roletroll uses technology that was previously applied in quantitative finance to identify profitable trades to identify profitable jobs. The site’s proprietary matching technology draws from the fields of optimization theory, natural language processing and machine learning to identify and score matches.

Read the June 20 Portfolio Products Roundup at ThinkAdvisor.

6/27/2014

A Few Reasons to Invest in LinkedIn for Solid Growth

In the last few years, growth of social media has overwhelmed people across the globe to such an extent that everyone from big business houses to small scale investors is trying to reap some benefit by participating in the tide. It is extremely difficult for any player to just rush into the space and establish its business among the likes of Facebook (FB) and Twitter. However, LinkedIn (LNKD) is one such company that has astutely carved out a niche market for itself and created immense value for its shareholders.

The Company Knows the Most Important Part: Good Products

The employment crisis prevailing in countries across Asia and Europe benefited LinkedIn as more and more people got on-board during the quarter to look out for opportunities. As reported, approximately 65% of its members are outside of the U.S. Besides this, the launch of relevant and innovative products throughout the quarter secured greater customer engagement.

The company released various products with the sole motive of making things convenient for its users. May it be the LinkedIn Contacts, which makes it easier for users to track meaningful conversations or empowering members to add rich media content to their profiles, LinkedIn has adopted the right strategy to survive in this industry — consistent innovation.

As per analysts, LinkedIn's PEG ratio on a five year forecast is around 2.6, which makes it a reasonable buy as compared to its peers. I say this is a justified valuation keeping in mind that the company is still very young and has a plethora of growth opportunities ahead. Also, the way it is investing money and efforts in innovation, it is sure to pay off handsomely in the near future. The company also saw a commendable increase of 68% in revenue from premium subscriptions, which testifies to the excellent quality of its offerings.

Facebook Is Trying Hard

Facebook's Graph Search has the potential to become a dangerous threat to LinkedIn as users are using it vigorously to establish professional connections and recruiters are using it to find the best candidates.

It is evident that Facebook is trying every measure possible in order to engage users on the website. Moving ahead, the company will be banking heavily on these new products to get more people on-board. I believe Facebook's share price will successfully sustain the momentum because of the stupendous growth in mobile ad revenue and frequent launch of new products/features.

Invest in LinkedIn's Growth

Getting straight to the point, I would happily invest in LinkedIn at this point, not because of its hype but for the growth opportunities that lie ahead. It is difficult to survive in an industry with such fierce competition, but LinkedIn has done it in a magnificent way. The reason for this success lies in its well-placed strategies.

An explosive growth in the next few years will come from mobile and the company has already started working on it. In April 2013, it launched a new iOS and Android app, which saw a 40% lift in mobile engagement than the previous app. I am happy to see that LinkedIn has realized the potential of mobile and started working on it to revamp the experience of its users.

One of the things that has made Google so huge is valuable and mindful acquisitions. Well, LinkedIn has cleverly followed a similar path by adding new businesses to its portfolio with the overall objective of satisfying users. Last year, it acquired the content sharing platform Slideshare, a move that is going to generate huge returns very soon.

To sum it all up, Linkedin is a superb investment for its products, opportunities and an efficient management team.

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SEC Enforcement: Court Stops Muni Bond Offer Seen as Fraudulent

In recent SEC enforcement actions, a hedge fund advisory firm and its owner were charged with misuse of investor funds; a court order was filed against Harvey, Ill., to halt a bond offering; two former brokers were charged with insider trading; and three former bank executives were charged in an accounting scheme.

Court Stops Muni Bond Sale in Chicago Suburb on Fraud Concerns

The Chicago suburb of Harvey and its comptroller, Joseph Letke, were the targets of a temporary restraining order requested by the SEC as the agency sought to stop a bond offering that the city has been marketing to potential investors, alleging the city has been misusing bond proceeds.

According to the agency, for the past several years, the city and Letke have been diverting bond proceeds for improper and undisclosed uses. The purported purpose of prior bond offerings was to fund the development and construction of a Holiday Inn hotel in Harvey. However, Harvey officials quietly diverted at least $1.7 million of bond proceeds from these offerings to pay the city’s operational costs such as its payroll, and Letke received approximately $269,000 in undisclosed payments derived from bond proceeds.

Harvey’s bond offerings in 2008, 2009 and 2010 were limited obligations bonds that were to be repaid from dedicated tax revenue streams such as Harvey’s hotel-motel tax, sales tax, or incremental tax from the Tax Increment Financing District that the city created for the development and construction of the Holiday Inn project.

However, with Harvey and Letke diverting offering proceeds, the hotel redevelopment project turned into a fiasco for both investors and city residents. The SEC cited news reports that say the proposed Holiday Inn hotel and conference center is just a shell, with holes in the façade, a gutted interior, dangling wires and exposed studs.

While investigating Harvey’s past bond offerings to investors, the SEC learned that the city intended to offer more limited obligation bonds before the end of June. The draft offering documents for these new bonds make materially misleading statements about their purpose and risks, while hiding the fact that past bond proceeds have been misused.

In response to the agency’s request, Judge Rebecca Pallmeyer at an emergency hearing issued the temporary restraining order. Additionally, the court order prohibits Letke from incurring any extraordinary expenses beyond reasonable and customary personal and business expenses. An additional hearing is scheduled, and the investigation is ongoing.

Florida Hedge Fund Advisory Firm, Owner Charged With Misuse of Funds

The SEC has filed charges against West Palm Beach, Fla.-based Weston Capital Asset Management LLC and its founder and president, Albert Hallac, for shifting money from one investment to another without informing investors. Instead, investors were told via fabricated account statements that their investments were doing as well as, or even better, than ever. The firm’s former general counsel, Keith Wellner, helped in the scheme.

In early 2011, Weston Capital managed more than a dozen unregistered hedge funds with combined total assets of approximately $230 million. One of the funds, Wimbledon Fund SPC, was segregated into five separate classes of investment portfolios. The Class TT Segregated Portfolio was required to invest all of its investor money in a diversified multibillion-dollar hedge fund called Tewksbury Investment Fund Ltd., which invested in short-term, low-risk interest-bearing accounts and U.S. Treasury bills.

However, Hallac and the firm, according to the agency, redeemed TT Portfolio’s entire investment in the Tewksbury hedge fund — more than $17 million — and transferred the money to a consulting and investment firm known as Swartz IP Services Group Inc.

Not only did they hide the move from investors and violate the hedge fund’s strategy, but $750,000 of the money eventually found its way into Hallac’s pockets — as well as those of his son and Wellner. In addition, Weston Capital and Hallac also used $3.5 million of that money to pay down part of a loan from another fund managed by the firm.

Weston Capital and Hallac also solicited and received investments for the TT Portfolio during this time while knowing the funds would not be invested in Tewksbury. As soon as Swartz IP received the money transfers, it disbursed the funds primarily to a special purpose entity created to support and finance varying medically related business ventures.

Without admitting or denying the allegations, Weston Capital, Hallac and Wellner agreed to settle the SEC’s charges along with Hallac’s son Jeffrey Hallac, who is named as a relief defendant in the SEC’s complaint for the purposes of recovering ill-gotten gains in his possession. Wellner and Jeffrey Hallac each agreed to pay $120,000 in disgorgement. The court will determine monetary sanctions for Weston Capital and Hallac at a later date.

Two More Former Brokers Charged in Insider Trading Case

Former brokers Benjamin Durant III and Daryl Payton were charged by the SEC with illegally trading on a tip about the $1.2 billion acquisition of SPSS Inc. in 2009 by IBM Corp. The tip came from Thomas Conradt, a friend and fellow broker in the New York office of a Connecticut-based broker-dealer. The SEC’s complaint seeks return of alleged ill-gotten trading gains of approximately $300,000, with interest, financial penalties and permanent injunctions.

In a parallel action, the U.S. Attorney’s Office for the Southern District of New York has announced criminal charges against Durant and Payton.

The SEC previously charged that Conradt and David Weishaus, another fellow broker and tippee, traded on confidential information that Conradt received from his roommate, Trent Martin, a research analyst who misappropriated it from an attorney working on the transaction. Martin, Conradt and Weishaus settled with the SEC and pleaded guilty last year to related criminal charges in the matter.

According to the agency, in a private meeting with Martin, his attorney friend revealed nonpublic information about the acquisition, including the names of the companies and the anticipated transaction price. The lawyer expected Martin to keep the information in confidence and refrain from trading on it but instead, Martin traded and tipped Conradt, who traded and tipped Durant and Payton, among others. /* .premium-promo { border: 1px solid #ddd; padding: 10px; margin: 0 10px 10px 0; width: 200px; float: left; } .premium-promo li, .premium-promo ul { list-style-type: none; margin: 0; padding: 0; } .premium-promo li { margin: 0 0 10px; padding: 0 0 10px; border-bottom: 1px dotted #ddd; } .premium-promo h3 { text-transform: uppercase; font-size: 11px; } .premium-promo h4 { font-size: 16px; } .premium-promo a { text-decoration: none !important; } .premium-promo .btn { background: #0069a1; border-radius: 4px; display: inline-block; padding: 5px 10px; clear: both; color: #fff; font-weight: bold; } .premium-promo .btn:hover { background: #034c92; } */ The SEC also said that on the day the acquisition was publicly announced, Durant, Payton and others met at a Manhattan hotel room and discussed what to do if law enforcement officials contacted them about their trading in SPSS securities.

The investigation is continuing.

Former Bank Execs Charged in Accounting Scheme

Thomas Neely Jr., Jeffrey Kuehr and Michael Willoughby, former senior managers of Regions Bank, have been charged by the SEC with intentionally misclassifying loans that should have been recorded as impaired for accounting purposes. As a result, the bank’s publicly traded holding company overstated its income and earnings per share in its financial reporting.

According to the agency,the scheme took place while Neely was head of Regions Bank’s risk analytics group in 2009. Along with Kuehr, the bank’s head of special assets, and Willoughby, chief credit officer, Neely took intentional steps to circumvent internal accounting controls and improperly classify $168 million in commercial loans as performing so Regions could avoid recording a higher allowance for loan and lease losses.

Regions Bank tracked and recorded its nonperforming loans (NPLs) for internal performance metrics and regular financial reporting. NPLs typically were placed on nonaccrual status payment of all contractual principal and interest was 90 days past due or otherwise in doubt. Once a loan entered nonaccrual status, uncollected interest accrued during that current year was reversed and the bank’s interest income would be reduced.

Nonaccrual status also served as a trigger for Regions Bank to consider whether the loan was impaired and to determine an allowance for loan and lease losses in accordance with U.S. Generally Accepted Accounting Principles (GAAP).

Neely had other ideas, however. When personnel within the bank’s special asset department started proceedings for approximately $168 million in NPLs to enter nonaccrual status during Q1 of 2009, Neely arbitrarily and without supporting documentation required the loans to remain in accrual status. That meant that Regions’ financial statements for the quarter ended March 31, 2009, were materially misstated and not in conformity with GAAP. Neely and Willoughby knowingly provided understated NPL data for the quarter to the CFO and other senior executives during a meeting in late March.

Without admitting or denying the findings, Kuehr and Willoughby agreed to settle the SEC’s charges; they will pay penalties of $70,000 each, plus be prohibited from serving as officers or directors of public companies for five years. The agency will take Neely’s charges to court.

The SEC also entered into a deferred prosecution agreement with Regions Financial Corp., which substantially cooperated with the agency’s investigation and undertook extensive remedial actions. Regions will pay a total of $51 million to resolve parallel actions by the SEC, Federal Reserve Board and Alabama Department of Banking.

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Check out Raking It In: What FINRA's Top Execs Earn on ThinkAdvisor.

6/25/2014

Leave CarMax Stock on the Lot For Now (KMX)

Popular Posts: 5 Stocks Ready to Bloom in SpringGoogle Stock Split Is All Good For GOOG Investors3 Stocks to Buy Now That Spring is In the Air Recent Posts: Here Is Your Guide for Q1 Earnings Season Leave CarMax Stock on the Lot For Now (KMX) Don’t Panic Out of Barnes & Noble Stock Yet View All Posts

Welcome to the Stock of the Day.

Carmax 185 Leave CarMax Stock on the Lot For Now (KMX) Shares of CarMax (KMX) stock retreated after the used automobile retailer reported 9% fourth-quarter sales growth and a billion-dollar increase to its ongoing stock buyback program. Huh? What spooked investors? And is this a buying opportunity for CarMax stock or a sign that CarMax is stopped at a red light?

Find out now.

Company Profile

CarMax is a major retailer of used vehicles in the United States. It also sells vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions, as well as sells new vehicles under franchise agreements.

In addition, the company provides customers financing alternatives through its finance operation, CarMax Auto Finance, as well as through its third-party financing providers. At time of writing this, CarMax operates 123 used car superstores in 61 markets. Based in Richmond, Virginia, the company was founded in 1993.

Earnings Rundown

For the fiscal fourth quarter, CarMax earned $99.2 million, or 44 cents per share, on $3.08 billion in sales. Compared with the year ago quarter, this represents 9% annual sales growth and a 7.5% drop in earnings.

Analysts had forecast $3.18 billion in sales so CarMax missed the sales estimate by a hefty margin. Not even the firm’s announcement that it’s boosting its stock buyback program buy $1 billion could restore investor confidence in KMX.

After all, the company is expected to experience margin compression over the next few quarters. Next quarter, the analyst community expects just 9.4% top-line growth and 6.3% bottom-line growth. This is well below the industry average of 45.8% forecast earnings growth.

Current Ratings

Before you buy any stock, you should always run it through my free Portfolio Grader ratings system. When it comes to institutional buying pressure, which measures a stock’s risk-to-return ratio, CarMax stock has it rough. It earns a D for its Quantitative Grade.

Meanwhile, the company could stand to improve some of its fundamental metrics, including operating margin growth (C), earnings momentum (C), and earnings surprises (D). The other five measures currently earn Bs, but that may change once the latest quarterly results are plugged in. KMX receives a C for its Fundamental Grade.

Bottom Line: As of this posting I consider CarMax stock a D-rated Sell.

Would you like to check the fundamentals backing up one of your stocks? For more stock grades, please visit my Portfolio Grader website!

6/24/2014

Profit from the Huge Price Surge… That You've Created

It's been five months since we last checked in on palladium, the precious metal so critical to the consumer electronics we use hundreds of times a day.

At the time I said I was bullish for a number of market reasons.

As it turns out, there were even more...

Now it's time for another close look, since the bullish forces are only picking up speed.

What's more, some new ones have materialized, pointing to a massively profitable palladium spike...

The Economic Factors Are Undeniable

When we talked about palladium back in October, I highlighted some of the underlying forces at play that were likely to support and push its price higher.

Those things - mainly sales of electronics and light vehicles - have powered ahead, helping to lift palladium prices as expected.

Palladium went from $710/oz. in October to $800/oz. on an intra-day basis just last week.

Expect the exclusive metal to head higher as recent developments are only adding to its bullish outlook.

You already know that South Africa and Russia are where nearly 80% of annual palladium supply is mined.

Since October, South Africa's problems with striking miners have only gotten worse. For three of the country's largest platinum producers (palladium is often a byproduct of platinum production), the recent nine-week strike has caused irreparable damage, costing the sector almost $1 billion in revenues.

Farther east, sales from Russian palladium stockpiles also appear to have reached their limits.

Traders closely track Russian shipments of palladium to Switzerland for clues on their supplies. That's because many believe Russia moves the bulk of its palladium through that country. February shipments were 6,500 ounces and have been trending lower since early 2011, according to Barclays, which expects a "sizable deficit" in 2014. And that's despite climbing prices.

Complicating matters are the developments in the Ukraine. The West is imposing sanctions on Russia, and that could limit their ability to export palladium, potentially badly denting supply... at exactly the wrong time.

Meanwhile, a perfect storm is building that could push palladium higher still...

Just when supply is being crunched, demand is popping.

Last Thursday, South Africa's Absa Bank Ltd. (JSE: ABSP) listed its NewPalladium ETF, allowing that country's investors an easy way to gain exposure to the physical palladium market.

In the weeks preceding its launch, Absa had accumulated 8,600 ounces of palladium, which according to the South African Reserve Bank, must be sourced in the country. Should the ETF prove popular, Absa will of course need to buy more palladium to satisfy demand.

Based on the company's experience with palladium's sister metal, demand could be very robust. Absa already runs the NewGold NewPlat ETF (JSE: NGPLT). Within just four months of its launch, NewPlat has become the world's largest ETF of its type. NewPlat ETF already holds 956,000 platinum ounces, and the company still expects significant growth.

Not to be outdone, Standard Bank has also just launched its own palladium ETF, introducing the second new palladium ETF in just the last week. Standard already offers a palladium-based ETN (exchange-traded note), but its newest addition is backed by physical metals held in London.

As these ETFs grow, its means more palladium will be removed from supply.

These Charts Plot the Way... to Your Profit

Platinum and palladium are sister metals. As part of the platinum group metals, they are often unearthed together.

These are metals that have similar applications, but are not necessarily interchangeable.

Most palladium is used for gasoline engine catalytic converters, whereas the largest single use for platinum is in diesel engine catalytic converters.

Technological applications for these metals are developed based on their specific properties. So it's nearly impossible in most cases to simply "swap" one for the other. That means palladium-based anti-pollution systems will keep using the metal even as its price rises.

Nonetheless, because these sister metals have similar properties and applications, their price relationship is something that's closely followed.

Right now, the spread between platinum and palladium prices has fallen to a 12-year low, as palladium prices have roared ahead to close the gap further.

The following chart shows that as palladium hit a 2 ½-year high last week, the platinum-to-palladium ratio has hit a marked low. While this may reverse in the short term, I expect these low levels to become a new norm.

Platinum Palladium Price Ratio And while we're palladium chart gazing, have a close look at this next one.

Back in October I included this chart when I discussed palladium. At the time I pointed out that the eight largest futures traders were short 127 days of world palladium production. At the time, it was at a 13-year high, and palladium was in first place ahead of all other major commodities.

Concentration of Traders in CFTC Today, palladium's still short about 127 days of production by its eight largest futures traders. The only thing that's changed is that silver has taken over the first spot in the chart.

If palladium prices spike, these traders could be forced to cover their large short positions by buying offsetting long contracts, reinforcing and potentially pushing price gains higher still.

As the setup for palladium (and platinum) continues to offer a bullish fundamental outlook, Real Asset Returns readers have recently added exposure to these metals through a superior ETF-type investment vehicle backed by physical metals.

Investors looking for exposure strictly to palladium should consider the ETFS Physical Palladium Shares ETF (NYSE: PALL), which does a pretty good job of tracking palladium prices with an annual net expense ratio of 0.60%.

The takeaway: remember that demand fundamentals remain strong, while South African and Russian supply challenges could exacerbate supply issues in short order.

All of this points to a very bullish outlook for a rare but increasingly necessary metal...

The Rise of Bitcoin Will Crush These Stocks

Let's call them the Bitcoin stock losers - payment processing companies that stand to have their business models severely disrupted, if not wiped out, by the widespread adoption of Bitcoin.

While still in its infancy, Bitcoin has several key advantages over other forms of payment processing.

Bitcoin stock As today's Bitcoin startups make the digital currency easier to use, those advantages will become more apparent to the general public, setting off a mass transition away from traditional forms of payment such as credit cards.

While this may be hard to imagine right now, the Bitcoin ecosystem is already established and growing. In three to five years, it will reach a tipping point where Bitcoin will be accepted in most places and most people will have seamless ways to use it, primarily on their smartphones.

That's when Bitcoin's threat to the $48 billion in annual credit card fees and $37 billion in international money transmission fees will hit home.

You'd think the Bitcoin stock losers - the credit card companies, big banks, and international payment companies - would be worried.

Not at all.

In fact, the companies most threatened by Bitcoin, the credit card industry, haven't even bothered to list the digital currency as a risk in U.S. Securities and Exchange Commission (SEC) filings.

"I'm a bit skeptical," David Nelms, the chief executive officer of Discover Financial Services (NYSE: DFS), told Bloomberg News. "[Other things pose] a lot more potential threats or opportunities than Bitcoin."

Nelms is not alone. The heads of American Express Co. (NYSE: AXP), Visa Inc. (NYSE: V) and MasterCard Inc. (NYSE: MA) have all been dismissive regarding any adverse impact the growth of Bitcoin might have on their businesses.

For that matter, so have the executives of several big banks as well as the international payment companies.

"Today, people speculate on the potential," Alex Hoffmann, executive vice president of global product management and emerging channels at MoneyGram International Inc. (NYSE: MGI), told Bloomberg News. "But today you do not have it."

Here's why these executives are dead wrong - and how their inability to see what's coming is going to pummel their stocks.

How the Bitcoin Stock Losers Will Be Ruined

Among the executives of payment processing companies disregarding the Bitcoin threat, a common ploy is to point to a perceived weakness as a reason the digital currency doesn't threaten their business.

What they don't seem to realize is that each of these issues can be fixed, and is in the process of being fixed, by a blossoming collection of Bitcoin startups.

Visa CEO Charlie Scharf said Bitcoin is "complex," implying it's hard for ordinary people to use.

This is somewhat true now, but is changing quickly. There are already several Bitcoin wallet apps for smartphones available. It's also no coincidence that the Bitcoin startup that has raised the most venture capital so far ($32.7 million) is BitPay - a payment processor company.

Within the next year or two, paying with Bitcoin will be at least as easy as using a credit card.

Some point to Bitcoin price volatility as a problem, but Bitcoin payment processors serving merchants already have mitigated that by converting the transactions to dollars immediately at the time of the sale.

Other executives scoffed at Bitcoin's relatively small footprint. Daily transaction volume in Bitcoin is only about $50 million, dwarfed by the $3.7 trillion processed by giants MasterCard and Visa.

But one year ago Bitcoin transaction volume was only about $7 million a day. That's a seven-fold increase - in just one year. In a few years, as the ecosystem grows, the daily transaction volume will be in the billions.

And several executives laughably claimed their systems were more secure and trustworthy than anything based on Bitcoin, which isn't even true now. Have they already forgotten the massive credit card data breach at Target Corp. (NYSE: TGT) last year?

While bitcoins have been lost and stolen from exchanges like Mt. Gox, the cause was not a flaw in the Bitcoin protocol but weak systems and bad habits (like not keeping most of the bitcoins offline in "cold storage").

As a payment mechanism, Bitcoin is far superior to credit cards.

Each transaction only contains an address (a unique string of characters) for the sender, an address for the recipient, and the amount of Bitcoin being transferred between them.

The address can only successfully send Bitcoin if it has access to the private key associated with a person's Bitcoin wallet. This private key is never sent as part of the transaction, however.

But just as importantly, using Bitcoin instead of a credit card also means that no personal data is transmitted or stored. That leaves potential data thieves empty-handed save for the Bitcoin addresses, which are useless without the private keys.

Yet there's one more reason that will drive people to use Bitcoin over other payment systems more than any other...

Merchants and Customers Save on Fees with Bitcoin

Costs drive behavior in the business world, and Bitcoin's greatest advantage over legacy payment processors is that it is far cheaper.

The fees that credit card companies charge, in concert with the banks that issue the cards, vary, but typically range between 2% and 3% of each transaction. Compare that to the 1% fee that Coinbase charges merchants to process payments made in Bitcoin.

That's one reason why merchants like Overstock.com Inc. (Nasdaq: OSTK) started accepting Bitcoin.

Imagine what will happen to the Bitcoin stock losers when the digital currency goes mainstream over the next few years - a decade at most. Those billions in annual fees will start to decline. It will start slowly, but will suddenly accelerate as Bitcoin usage becomes commonplace.

That's when the stocks of the credit card companies will crater, like BlackBerry Ltd. (Nasdaq: BBRY) did in 2011 after smartphones swallowed up its market share.

The banks that issue the cards will also take a hit, though not as badly. That would include such big names as JPMorgan Chase & Co. (NYSE: JPM), Bank of America Corp. (NYSE: BAC), and Citigroup Inc. (NYSE: C).

And because Bitcoin can easily be converted to various world currencies in addition to moving money cheaply, it is also likely to steal business from international payment companies like MoneyGram and Western Union Co. (NYSE: WU).

It will take time, for sure, but the longer the Bitcoin stock losers dismiss the threat, the more difficult it will be for them to cope with it when it becomes too big to ignore.

Tomorrow: The Bitcoin stock winners.

Up Next: One of the surest signs that the Bitcoin economy is gaining traction is the speed at which venture capital is pouring into Bitcoin startups. Here's what venture capitalists are seeing that has them so excited...

Bloomberg News: Bitcoin Seen as Little Threat to Payment Firms Bloomberg News: Could Bitcoin Be Trouble for Visa and MasterCard?

6/22/2014

Starbucks serving alcohol at more locations

Don't be surprised if you soon get carded at your neighborhood Starbucks.

Like others in the ultra-competitive restaurant world, the coffee giant plans to expand the number of domestic locations that sell alcoholic beverages.

What began with a single Starbucks location in Seattle selling beer and wine in 2010, has slowly but methodically evolved to 26 locations. That's about to go into hyper-drive. Within the next several years, the alcoholic beverage platform will expand to thousands of locations, spokeswoman Lisa Passe says.

"The concept is a natural progression for Starbucks as we seek to create a new occasion for customers to gather, relax and connect with each other in the evenings," Passe says.

Starbucks once again finds itself at the leading edge of an industry trend on the grow. Not only are sales of alcoholic beverages lucrative, but they attract night-time customers, when business typically slows down. The risk is turning off customers who don't want to be part of that environment. The chain has seen little of that blow-back in its slow expansion of beer and wine, which will reach 40 locations by the end of this year.

Some unlikely restaurants have increasingly embraced sales of alcoholic beverages in recent years. Applebee's has heavily marketed its alcoholic beverage sales. Red Robin earned some recent social media buzz when it began to roll out wine shakes — a few years after rolling out beer shakes. Burger King gave it a go, when it began selling beer and burgers four years ago at its new concept, the Whopper Bar in Miami Beach's tourist-heavy South Beach. And three years ago, Sonic began to sell beer at a couple of its Florida locations.

Among other things, wine and beer sales can substantially boost the average ticket at Starbucks. At Wednesday's annual shareholders meeting, CEO Howard Schultz noted that the typical Starbucks customer spends about $5 per visit. A glass of beer or wine can instantly double that figure. "We are in the early! stages of our growth and development," Schultz said. "If we're a 20-chapter book, we are only in chapter four or five."

One of those chapters could be the careful evolution from coffee to alcohol. There are no plans for alcoholic beverages beyond wine and beer, Passe says. Nor are there plans to expand the program outside the USA.

She says the menus at these locations typically offer shareable, warm small plates and desserts. The same stores typically sell artisan flatbreads, truffle mac n' cheese, bacon-wrapped dates, salted caramel and cheesecake brownies.

Even then, coffee rules. "In the true spirit of a traditional coffeehouse, while some stores may serve wine and beer," Passe says, "coffee will remain the focus of the experience."

Pro Trader Notes: Inside the Mind of a Profit Guru

Markets are being driven by the U.S. dollar and yen as well as "buy the dippers," aka small investors who continue to buy into the market. Today, Putin said he had no intention of invading the rest of Ukraine. Like he would really tell everyone if he planned to do it ahead of time. The bottom line is the markets continue to push higher into the FOMC Policy Statement tomorrow. The market has priced in another $10 billion taper. The comments from the Fed (dovish or hawkish) will be the key to the market move. Whether or not the big drop from last Thursday can be negated with this rally is at the heart of whether or not the stock market is headed higher or lower in the short term. Watch for a closing S&P 500 price above 1,874.40. If it closes above, the markets will likely test the all-time highs on the S&P 500 and very possibly move higher. If the markets cannot close above the highs by tomorrow, look for a flush and Thursday's lows to be wiped out quickly. Copper is an important long-term indicator, but short-term means nothing. The recent collapse after extremely poor Chinese economic news confirms the lack of demand for the building materials metal. Down the line this spells huge trouble for the global economy and should be taken as a warning signal. There is a limited amount of time prior to the copper signal coming into play. Facebook (FB) continues to look weak. The hype is fast fading and the charts show significant downside in the coming months. Look for a test of the $59.00 and then $53.50 level. Gareth Soloway

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6/21/2014

Mid-Day Market Update: Oracle Drops On Downbeat Results; Shire Shares Climb

Midway through trading Friday, the Dow traded up 0.25 percent to 16,964.42 while the NASDAQ surged 0.03 percent to 4,360.73. The S&P also rose, gaining 0.17 percent to 1,962.85.

Leading and Lagging Sectors

Healthcare shares gained 0.81 percent in the US market on Friday. Top gainers in the sector included Shire plc (NASDAQ: SHPG), StemCells (NASDAQ: STEM), and Flamel Technologies SA (NASDAQ: FLML).

Telecommunications services shares dropped about 0.48 percent in trading on Friday. Top decliners in the sector included DigitalGlobe (NYSE: DGI), down 5.7 percent, and NQ Mobile (NYSE: NQ), off 3.8 percent.

Top Headline

CarMax (NYSE: KMX) reported upbeat results for the first quarter.

CarMax posted its quarterly profit of $169.7 million, or $0.76 per share, versus a year-ago profit of $146.7 million, or $0.64 per share.

Its sales climbed to $3.75 billion from $3.31 billion. However, analysts were expecting earnings of $0.67 per share on sales of $3.598 billion. Total wholesale unit sales gained 9.9%.

Equities Trading UP

Shire plc (NASDAQ: SHPG) shares shot up 16.62 percent to $223.58 after the company confirmed the rejection of Abbvie (NYSE: ABBV) bid.

Shares of CarMax (NYSE: KMX) got a boost, shooting up 17.18 percent to $53.06 after the company reported upbeat results for the first quarter. CarMax posted its quarterly profit of $169.7 million, or $0.76 per share, versus a year-ago profit of $146.7 million, or $0.64 per share.

Entegris (NASDAQ: ENTG) shares were also up, gaining 2.45 percent to $13.40 after the company lifted its second-quarter outlook.

Equities Trading DOWN

Shares of Smith & Wesson Holding (NASDAQ: SWHC) were 10.47 percent to $15.22 after the company issued downbeat forecast for the first quarter and fiscal year.

Oracle (NYSE: ORCL) shares tumbled 5.33 percent to $40.25 after the company reported weaker-than-expected fiscal fourth-quarter results. Its adjusted earnings came in at $0.92 per share, missing analysts’ estimates of $0.95 per share. Citigroup downgraded Oracle from Buy to Neutral.

Targa Resources (NYSE: TRGP) was down, falling 6 percent to $141.58. On Thursday, Targa confirmed that it had high level discussions to be acquired by Energy Transfer Equity, but the talks have been terminated.

Commodities

In commodity news, oil traded up 0.63 percent to $107.10, while gold traded up 0.11 percent to $1,315.60.

Silver traded up 1.15 percent Friday to $20.89, while copper rose 1.20 percent to $3.11.

Eurozone
European shares were mostly lower today.

The eurozone’s STOXX 600 declined 0.02 percent, the Spanish Ibex Index dropped 0.29 percent, while Italy’s FTSE MIB Index fell 1.03 percent.

Meanwhile, the German DAX fell 0.17 percent and the French CAC 40 declined 0.48 percent while UK shares gained 0.25 percent.
Economics
On the economics calendar Friday, there is no important data due out.

Posted-In: Earnings News Eurozone Futures Commodities Top Stories Economics Intraday Update Markets

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Tesla’s Comeback Creates Managers’ Dilemma

The anarchists in Chumbawamba might not like the reference, but momentum stocks like Tesla Motors (TSLA), Netflix (NFLX) and TripAdvisor (TRIP), after getting knocked down, have gotten up again.

Associated Press

Bloomberg reports:

Netflix Inc., Tesla Motors Inc. and TripAdvisor Inc. have rallied more than 16 percent in the past four weeks, recouping most of the losses from a rout during March and April. The Nasdaq Composite Index reached a 14-year high this week and the Russell 2000 Index is 2 percent from a record. Both fell at least 8 percent earlier in 2014.

The comeback in technology and small-caps shows appetite for risk is returning as investors overcome concern about the economy and stock valuations. The Standard & Poor's 500 Index has risen in four of the past five weeks and is up 1.2 percent since June 13, reaching a record.

Nomura’s Joe Mezrich discusses the active managers’ reliance on momentum:

Although hired for their stock picking skills, fundamental managers have become enormously dependent on momentum as they seek to boost alpha…If the correlation of excess returns to momentum, as noted in Figure 3, continues, the question for fundamental managers will be whether momentum will once again produce positive returns. Our expectation is that momentum will likely reward, which should benefit
fundamental active managers. If managers pull back their momentum reliance—which anecdotally seems to have been the reaction of some managers to the March and April markets—then we believe their future success will mainly depend on the correlation of stocks to each other and the dispersion of stock returns across the market.

Shares of Tesla Motors have gained 0.1% 227.91 at 3:09 p.m. today, while Netflix has dropped 0.3% to $440.08 and Trip Advisor has risen 0.3% to $103.31.

6/20/2014

AbbVie: Is Shire Just Playing Hard to Get?

British drug maker Shire (SHPG) turned up its nose at the $46.5 billion offer by U.S. rival AbbVie (ABBV), in the latest move by a U.S. company to pursue a deal for a company with a lower tax rate. Simply put, Shire says the bid is to low and released ambitious new targets to more than double its annual sales to $10 billion by 2020.

What will it take to get the deal done?

Leerink analyst Jason Gerberry says AbbVie's cash and stock offer is lacking in certain areas, namely the stock component is too high and there's no contingent right value to reward Shire shareholders for pipeline assets that could pop down the road. He writes:

We believe the race for doing tax inversions will only accelerate, which works in SHPG's favor, meaning demand for SHPG will be high and SHPG should seriously considering accepting a slightly higher offer that is more cash-rich and also allows shareholders to enjoy the potential upside if products like Premiplex or lifitegrast get approved. Next steps: ABBV will need to announce its firm intention to make another offer by 7/18. Other potential acquirers we could envision stepping in include AGN, PFE, and BMY.

AbbVie said Friday that it had made three cash-and-share proposals to the board of Shire, with the latest valued at $78.87 for each Shire share. The North Chicago, Ill.-based drug maker said discussions were no longer ongoing and offered no guarantee of another offer.

AbbVie’s proposal comes amid a wave of interest in such so-called tax inversion deals, most prominently Pfizer's (PFE) failed $120 billion attempt to buy AstraZeneca (AZN). U.S. medical-device company Medtronic (MDT) on Sunday agreed to buy the U.K.‘s Covidien (COV) for $42.9 billion, also in part to lower its tax rate.

Buying Shire is about more than lowering AbbVie's tax bill. The deal reduced Shire's reliance on Humira sales before the patent protecting the arthritis drug expires in 2016.

But the Humira patent expiration puts AbbVie's stock at risk. Under the latest deal terms, Shire shareholders would receive just over half of the proposed purchase price in AbbVie shares.

Meanwhile, Sen. Ron Wyden has announced plans to crack down on corporations that shift their tax addresses overseas through tax inversion deals, adding more risk to the deal, says Leerink's Gerberry. He writes:

The current ABBV deal consists to 56% equity and 44% cash. We suspect SHPG may have issue with taking ABBV stock given uncertainties around Humira (auto-immune) biosimilar risk – the composition of matter patents expire in the US and EU in 2016 and 2018, respectively, but other IP may come into play. Also, with the Wyden tax proposal seeking to retroactively undo inversion status for deals occurring post May 8, 2014, if they fail to meet higher equity thresholds (50% equity for foreign target in NewCo), we believe SHPG is likely looking for a "termination clause" or some other risk mitigation device to reflect risk the NewCo is treated as a US company that cannot avail itself of the benefits of UK tax law.

Shire shares rose 16.7% to $223.85, while AbbVie fell 1%.

Health care sector is hottest on IPO circuit

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.

Q: What kinds of companies are pulling off IPOs this year?

A: It's looking like another boom year for IPOs.

Demand for initial public offerings is surging. And with the increase in demand, companies and their investment bankers are prettying themselves up for market.

So far this year, there have been 37 companies selling shares to the public for the first time, says Renaissance Capital, up 68% from the same point last year. And the proceeds raised by these deals is exceeding $7.0 billion, a 19% rise from the same point last year.

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

But there's a big myth among investors that it's just small technology companies that look for IPOs. In reality, that's about as far from the truth as possible. So far this year, just two technology companies have sold shares to the public, Renaissance says.

That means technology is just ahead of transportation as the source as the fewest number of IPOs. It's actually health care that's leading the IPO parade, with 20 deals followed by energy with six. Healthcare is getting a lift by the huge demand for biotech deals.

IPO experts see the rise of other industries, and not just a reliance on tech, as being a positive for the market. When investors get overly fixated on IPOs from just one industry, there's a rising chance of creating bubbles, something that often ends badly.

6/19/2014

Top 5 Asian Stocks To Buy For 2015

When you think about the overall and ever-changing Fed, it's important to pay attention to every detail, especially now, while the president's decision on who will succeed chairman Ben Bernanke is postponed, writes MoneyShow's Howard R. Gold.

President Obama has postponed his decision on who will succeed Ben Bernanke as Federal Reserve chairman, with former Treasury Secretary Larry Summers, and current Fed vice chair Janet Yellen, the front runners.

Some senators and many rank-and-file Democrats back Yellen, while Summers has the strong support of White House economists and Wall Streeters. Former Deputy Treasury Secretary Roger Altman, now executive chairman of Evercore Partners, states the case that Summers is ��attle-hardened��and would be a good firefighter-in-chief in future international crises:

��Summers had the key role in the Clinton Treasury during both the Asian financial crisis and the Mexican default. And, later, in the Obama White House during the huge credit crisis in 2009.��

Top 5 Asian Stocks To Buy For 2015: Industrias CH SAB de CV (ICHB)

Industrias CH SAB de CV (ICH) is a Mexico-based holding company engaged, together with its subsidiaries, in the steel industry. The Company's activities include the production, processing and distribution of special bar quality (SBQ) steel products; coated and uncoated seamed pipes; structural steel products, such as beams, channels, flat bars and angles; light structurals, such as angles, flat and merchant bars; as well as reinforced and corrugated steel bars. The Company�� facilities include production and processing plants in Mexico, the United States and Canada. Advisors' Opinion:

[By Julia Leite]
The IPC rose 2.5 percent to 40,623.30 at the close in Mexico City. The index gained 6.8 percent on the week, the most since July 2009. Steelmaker Industrias CH SAB (ICHB) was the biggest gainer today, while homebuilders Desarrolladora Homex SAB, Urbi Desarrollos Urbanos SAB, and Corp. Geo SAB were the week�� best performers.

Top 5 Asian Stocks To Buy For 2015: Deutsche Bank AG (DBK)

Deutsche Bank AG is a global investment bank. The Company offers a variety of investment, financial and related products and services to private individuals, corporate entities and institutional clients around the world. The Company operates through such divisions as: Private and Business Clients, Asset and Wealth Management, Corporate Banking and Securities, Global Transaction Banking and Non-Core Operations Unit. Deutsche Bank AG is active domestically and in various countries, through the network of numerous branches. In February 2014, the Company and its related bodies corporate ceases to a share holder in the capital of the Company. Advisors' Opinion:

[By Tom Stoukas]
Deutsche Lufthansa AG (LHA) and Allianz SE (ALV) led airlines and insurers lower, retreating at least 1.5 percent. Bayerische Motoren Werke AG (BMW) slid 1.6 percent. Deutsche Bank AG (DBK) rose after JPMorgan Chase & Co. boosted its recommendation on the shares. Gildemeister AG (GIL) added 3.4 percent after Deutsche Bank upgraded the maker of cutting tools.

Best Beverage Companies To Invest In 2015: Occidental Petroleum Corporation(OXY)

Occidental Petroleum Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company primarily in the United States. The company operates in three segments: Oil and Gas; Chemical; and Midstream, Marketing, and Other. The Oil and Gas segment explores for, develops, produces, and markets crude oil, natural gas liquids, and condensate and natural gas. Its domestic oil and gas operations are located in Texas, New Mexico, California, Kansas, Oklahoma, Utah, Colorado, North Dakota, and West Virginia; and international oil and gas operations are located in Bahrain, Bolivia, Colombia, Iraq, Libya, Oman, Qatar, the United Arab Emirates, and Yemen. As of December 31, 2010, this segment had proved reserves of approximately 3,363 million barrels of oil equivalent. The Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, and ethylene dichloride products; vinyls, such as vinyl chloride monomer and polyvinyl chloride; and other chemicals comprising chlorinated isocyanurates, resorcinol, sodium silicates, and calcium chloride products. The Midstream, Marketing, and Other segment gathers, treats, processes, transports, stores, purchases, and markets crude oil that includes natural gas liquids and condensate, as well as natural gas and carbon dioxide. This segment also involves in the power generation; and trades around its assets comprising pipelines and storage capacity, as well as oil and gas, other commodities, and commodity-related securities. Occidental Petroleum Corporation was founded in 1920 and is based in Los Angeles, California.

Advisors' Opinion:

[By Robert Rapier]
There are numerous drillers making major investments in the Permian Basin. The list is long, but it includes Occidental Petroleum (NYSE: OXY), Chevron (NYSE: CVX), Devon Energy (NYSE: DVN), Pioneer Natural Resources (NYSE: PXD), Concho Resources (NYSE: CXO), ConocoPhillips (NYSE: COP) and Apache (NYSE: APA).
[By Monica Gerson]
Occidental Petroleum (NYSE: OXY) is projected to report its Q1 earnings at $1.70 per share on revenue of $6.21 billion. Occidental Petroleum shares dipped 0.58% to close at $94.44 on Friday.
[By Sean Williams]
In the Permian Basin, Occidental Petroleum (NYSE: OXY ) has been a big rail transport beneficiary, since it produced as much oil in 2011 as the No. 2, No. 3, and No. 4 producers combined! Being able to pilfer a few extra dollars per barrel can mean hundreds of millions of dollars extra for companies like Occidental with huge oil exposure.
[By Lee Jackson]
Occidental Petroleum Corp. (NYSE: OXY) is another top domestic E&P name on the Merrill Lynch list for 2014. The company may be looking to sell a stake in its Middle East and North Africa operations. With an estimated value of $22 billion, the assets are located in the United Arab Emirates, Qatar, Oman, Bahrain, Yemen, Libya and Iraq. Some analysts believe that selling an $8 billion to $10 billion stake would raise needed cash for debt reduction and share repurchases. Shareholders are paid a 2.6% dividend. The Merrill Lynch price target for the stock is $130, and the consensus is at $109. Occidental closed Friday at $88. Trading to the target price would be a very impressive 48% gain.

Top 5 Asian Stocks To Buy For 2015: Northern Dynasty Minerals Ltd (NAK)

Northern Dynasty Minerals Ltd. (Northern Dynasty) is engaged in the exploration of mineral properties. The Company holds 650 square miles of mineral claims in southwest Alaska, United States. As of December 31, 2011, the Company owned 50% interest in the Pebble Limited Partnership (the Pebble Partnership). The Pebble Partnership owns the Pebble Copper-Gold-Molybdenum Project (the Pebble Project). Its principal mineral property interest is located in Alaska, United States. The Pebble property (Pebble) is located in southwest Alaska, 19 miles (30 kilometers) from the villages of Iliamna and Newhalen, and approximately 200 miles (320 kilometers) southwest of the city of Anchorage. The Company�� wholly owned subsidiaries include 3537137 Canada Inc., Northern Dynasty Partnership and U5 Resources Inc. In December 2013, the Company announced that it has completed the re-acquired 100% ownership and control of the Pebble Partnership. Advisors' Opinion:

[By Rich Duprey]
Canadian mineral exploration and development company Northern Dynasty Minerals (NYSEMKT: NAK ) has approved an $80 million budget for 2013 to advance its Pebble project in Alaska.

Top 5 Asian Stocks To Buy For 2015: Thinspace Technology Inc (THNS)

Thinspace Technology Inc., formerly Vanity Events Holding, Inc., incorporated on November 22, 2006, is a holding company. Utilizing their licensed trademark of America's Cleaning Company, Vanity established a cleaning company offering residential and commercial cleaning services. In October 2012, the Company acquired fineartlender.com. In October 2012, the Company acquired additional URLS, which include Weddinggownlender.com; Suitlender.com and Bridalpartylender.com.

The Company seeks out, licenses, develops, promotes, and brings to market various consumer and commercial products. The Company markets products directly to the consumer and marketplace through one of its own properties www.ThereIsAProductForThat.com.

The Company competes with Rent the Runway, Inc., Rent-A-Center, Inc., Bag, Borrow or Steal, Inc., Aaron��, and Gilt Groupe, Inc.

Advisors' Opinion:

[By Peter Graham]
Small cap tech or media stocks Thinspace Technology Inc (OTCMKTS: THNS), Beamz Interactive Inc (OTCBB: BZIC) and Hannover House Inc (OTCMKTS: HHSE) have been getting some extra attention lately, but it appears that only one of these stocks has been the subject of a paid promotion. Nevertheless, all three stocks have been busy with press releases trying to get the attention of investors or traders. So are these three small cap tech or media stocks worth your attention? Here is a closer look along with a reality check:
Thinspace Technology Inc (OTCMKTS: THNS) Was Recently Busy With Press Releases
Small cap Thinspace Technology Inc is a global provider of reliable, scalable and affordable application delivery, virtualization and cloud client technology to public and private sector companies and organizations of all sizes. On Monday, Thinspace Technology Inc rose 2.80% to $0.330 for a market cap of $30.24 million plus THNS is down 82.6% over the past year and down 89.8% over the past five years according to Google Finance.
[By Peter Graham]
Last Friday, small cap biotech or tech stocks Amanasu Techno Holdings Corp (OTCMKTS: ANSU), Bio Matrix Scientific Group Inc (OTCMKTS: BMSN) and Thinspace Technology Inc (OTCBB: THNS) surged 44.74%, 42.31% and 14%, respectively, with only one of these small caps appearing to be the subject of some sort of small paid promotions or investor relations campaign. Given the lack of a big pump from promoters or IR people, will these three small caps keep surging or will the tide go out again this week? Here is a quick reality check to help you decide on a trading or investing strategy:

Fed Statement From Jun. 17-18th, 2014 Meeting

Related FED Wholesale Price Declines Suggest Slower Economy Fed's Beige Book from Jun. 4th, 2014

Information received since the Federal Open Market Committee met in April indicates that growth in economic activity has rebounded in recent months. Labor market indicators generally showed further improvement. The unemployment rate, though lower, remains elevated. Household spending appears to be rising moderately and business fixed investment resumed its advance, while the recovery in the housing sector remained slow. Fiscal policy is restraining economic growth, although the extent of restraint is diminishing. Inflation has been running below the Committee's longer-run objective, but longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace and labor market conditions will continue to improve gradually, moving toward those the Committee judges consistent with its dual mandate. The Committee sees the risks to the outlook for the economy and the labor market as nearly balanced. The Committee recognizes that inflation persistently below its 2 percent objective could pose risks to economic performance, and it is monitoring inflation developments carefully for evidence that inflation will move back toward its objective over the medium term.

The Committee currently judges that there is sufficient underlying strength in the broader economy to support ongoing improvement in labor market conditions. In light of the cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions since the inception of the current asset purchase program, the Committee decided to make a further measured reduction in the pace of its asset purchases. Beginning in July, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $15 billion per month rather than $20 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $20 billion per month rather than $25 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee's sizable and still-increasing holdings of longer-term securities should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative, which in turn should promote a stronger economic recovery and help to ensure that inflation, over time, is at the rate most consistent with the Committee's dual mandate.

The Committee will closely monitor incoming information on economic and financial developments in coming months and will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until the outlook for the labor market has improved substantially in a context of price stability. If incoming information broadly supports the Committee's expectation of ongoing improvement in labor market conditions and inflation moving back toward its longer-run objective, the Committee will likely reduce the pace of asset purchases in further measured steps at future meetings. However, asset purchases are not on a preset course, and the Committee's decisions about their pace will remain contingent on the Committee's outlook for the labor market and inflation as well as its assessment of the likely efficacy and costs of such purchases.

To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that a highly accommodative stance of monetary policy remains appropriate. In determining how long to maintain the current 0 to 1/4 percent target range for the federal funds rate, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments. The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee's 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored.

When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent. The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run.

Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; Stanley Fischer; Richard W. Fisher; Narayana Kocherlakota; Loretta J. Mester; Charles I. Plosser; Jerome H. Powell; and Daniel K. Tarullo.

Posted-In: News Futures Federal Reserve Markets Press Releases

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6/18/2014

Friend or Foe – Marijuana Stocks and the Tobacco Industry

Marijuana isn’t legal at the federal level, and that’s actually a blessing for the current crop of marijuana stocks, which are only seen as stocks to buy now because of the drug’s current legal status

medicalmarijuanastocks Friend or Foe Marijuana Stocks and the Tobacco Industry On the one hand, marijuana stocks — as sketchy as they are – would get a huge lift on impending legalization at the federal level. Heck, the entire sector of dubious over-the-counter medical marijuana stocks took off when only the states of Colorado and Washington legalized the drug.

That’s because the perception — as wrong as it is — is that existing marijuana stocks are sure winners on federal legislation. That fuels the mistaken belief that these penny issues are stocks to buy now.

Never mind that none of the OTC marijuana stocks are serious companies. As it is now, none of them actually grow or sell marijuana. They sell supplements, oils, accessories — products that are tangential to psychoactive marijuana.

They’re not really “marijuana” stocks.

After all, they can’t be. Marijuana is illegal in 48 states. And as suspect as the marijuana stocks might be, the people behind them are not stupid. Many of the marijuana stocks already have problems with securities regulators. They don’t need federal law enforcement on their cases too.

And yet it’s the promise of federal legalization that keeps these OTC marijuana stocks in play. That’s why some see them as stocks to buy now. If federal legalization one day looks imminent, these OTC medical marijuana stocks might rally ahead of the news and fly high for some time — but that will last only until real companies get in the game.

And they surely will.

Are Tobacco or Marijuana Names Stocks to Buy Now?

At this time, medical marijuana companies and their OTC marijuana stocks have nothing to fear from the big tobacco companies — the most obvious entrants into a legal marijuana industry. Tobacco giants such as Reynolds American (RAI) have made it clear they have no interest or plans to get into the marijuana business.

But of course they are going to say that as long as marijuana remains illegal in all but two states and has dim prospects of federal legalization in the near — or even medium — term. As such, tobacco companies are hardly stocks to buy now (at least as marijuana plays).

The fact remains that there’s still tremendous opposition to legalized marijuana and a stigma remains attached to the drug. Tobacco companies — headquartered in conservative states and owned mostly by conservative institutional investors — are never going to go near marijuana until it’s absolutely safe to do so.

However, if federal legalization looks to become a reality one day, you can be pretty damn sure the tobacco companies will be more than ready. That’s why federal legalization ultimately will wipe out most if not all of the OTC medical marijuana stocks. It’s their curse.

Sure, it’s possible that a few of these companies are on the up-and-up and have something of value, making them acquisition targets. But more likely is that they’ll all get steamrolled by the big boys.

Bottom Line

For now, the tobacco companies are staying away from marijuana (at least publicly). That’s the good news for OTC marijuana stocks, which are living on hype and hope.

But if the day does come for nationwide legalization, any OTC marijuana stock still standing won’t stick around for long.

As of this writing, Robert Martin did not hold a position in any of the aforementioned securities.

Top 5 Telecom Stocks To Watch For 2015

In 2014, the global tablet market is set to show its first signs of slowing down -- sprouting its first few gray hairs, so to speak.

On the surface this seems slightly absurd. How could a market that began less than five years ago with�Apple's (NASDAQ: AAPL ) introduction of the iPad in 2010 be approaching mass-market saturation? Fast forward to today and both�Apple�and�Google (NASDAQ: GOOG ) have carved out dominant portions of what's now become a truly global market.

But like it or not, that appears to be the case according to one firm's recent estimates.

Growing up fast
Research firm IDC�recently came out with data that implies both Apple and Google might need to search for a new growth driver -- and quick. According to IDC, the tablet market is set to expand a now-paltry 20% in CY 2014. This comes as another market both Apple and Google dominate, the global smartphone market, appears to be slowly maturing as well.

In the video below, tech-and-telecom analyst Andrew Tonner looks at the growth expectations for the tablet market going forward and the implications this industry-wide sea change could have on both Apple and Google.

Top 5 Telecom Stocks To Watch For 2015: Vivendi SA (VIVHY)

Vivendi SA (Vivendi), incorporated on December 18, 1987, is a communications and entertainment company. As of December 31, 2009, the Company had six business segments: Activision Blizzard, Universal Music Group, SFR, Maroc Telecom Group, GVT (Holding) S.A. (GVT) and Canal+ Group. Activision Blizzard develops, publishes and distributes interactive entertainment software, online or on other media (such as console and personal computer (PC)). Universal Music Group is engaged in the sale of recorded music (physical and digital media), exploitation of music publishing rights, as well as artist services and merchandising. SFR is engaged in the phone services (mobile, broadband Internet and fixed) in France. Maroc Telecom Group is a telecommunication operator (mobile, fixed and Internet) in Africa, principally in Morocco, as well as in Mauritania, Burkina Faso, Gabon and Mali. GVT is a Brazilian fixed and broadband operator. Canal+ Group is engaged in publishing and distribution of pay-television mainly in France, in both analog and digital (terrestrially, via satellite or ADSL), as well as film production in Europe. In July 2013, Vivendi SA and Universal Music Group announced the completion of the sale of Parlophone Label Group to Warner Music Group Corp.

On November 13, 2009, Vivendi acquired an aggregate of 29.9% of GVT�� outstanding voting shares from Swarth Investments LLC, Swarth Investments Holdings LLC and Global Village Telecom (Holland) BV. In addition, Vivendi acquired from third parties an additional 8% interest in GVT's outstanding shares. On December 28, 2009, Canal+ Group, Vivendi�� subsidiary, acquired TF1�� 9.9% interest in the capital of Canal+ France. On July 31, 2009, Maroc Telecom acquired 51% controlling interest in Sotelma. On August 27, 2009, CID, a company 40% owned by SFR and 60% by other financial investors, acquired the 62% interest in 5 sur 5.

Advisors' Opinion:

[By Demitrios Kalogeropoulos]
Activision Blizzard (NASDAQ: ATVI ) is striking out on its own. The company reached a purchase agreement with Vivendi (NASDAQOTH: VIVHY ) �to transfer enough shares so that it will become an independent company, one that's majority-owned by public investors rather than a single corporation.

Top 5 Telecom Stocks To Watch For 2015: IN Media Corp (IMDC)

IN Media Corporation, formerly Tres Estrellas Enterprises, Inc., incorporated on March 5, 2007, is a development-stage company. The Company focuses on providing integrated Internet protocol television (IPTV) services for platform providers for any device from large screen televisions to handheld mobile phones. It provides a combination of hardware, software, manufacturing and content services for platform providers to either complete their offerings or provide an all-in-one solution. On October 16, 2009, the Company executed an agreement between In-Media Corporation (In-Media) and the Company, subsequent to which In-Media was merged into the Company.

The Company�� partnerships with platform providers, such as Comcast, AT&T, DirecTV, provide an installed base of customers, as well as allowing platform providers to be the billing and service interface to customers. The Company is focusing on its first implementation in China through its Chinese distributor, which will include provision of set top boxes (STB)-related system support, reference platforms and technology, and access to over 4,000 titles of Hollywood and Bollywood movies.

Advisors' Opinion:

[By Peter Graham]
Small cap stocks IN Media Corp (OTCMKTS: IMDC), Epazz Inc (OTCMKTS: EPAZ) and Polaris International Holdings (OTCMKTS: PIHN) have been busy developing new devices/products or making acquisitions. Moreover, at least two of these small cap stocks have been the subject of paid promotions or investor relations types of activities. Keeping that in mind, will new devices/products or acquisitions help these small caps along with their investors or traders? Here is a closer look:

Best Up And Coming Companies To Invest In Right Now: China Teletech Holding Inc (CNCT)

China Teletech Holding, Inc., formerly Guangzhou Global Telecom, Inc., incorporated on March 29, 1999, is a distributor of pre-paid calling card and integrated mobile phone handsets and a provider of mobile handset value-added services. The Company serves as one of principal distributors of China Telecom, China Unicom, and China Mobile products in Guangzhou City. The Company is also developing an on-line refill platform with China Mobile to develop its on-line business in the Guangdong Province. On March 30, 2012, the Company acquired China Teletech Limited.

The Company operates its business through its subsidiaries in China: Guangzhou Renwoxing Telecom Co., Ltd., Guangzhou Global Telecommunication Co., Ltd., Guangzhou Rongxin Technology Co., Ltd., and Shenzhen Rongxin Investment Co., Ltd. The Company also engages in the business of wholesale and distribution of mineral water, as well as trading of wine in China. The Company has cooperative distribution relationships with Panasonic, Motorola, LG, GE, Bird, Samsung corporations for their mobile handsets.

Advisors' Opinion:

[By MARKETWATCH]
HONG KONG (MarketWatch)-- Hong Kong stocks rose early Thursday, as China Mobile Ltd. shined on news of iPhone pre-orders hitting 1 million units. The Hang Seng Index (HK:HSI) added 0.6% to 23,032.09. Market heavyweight China Mobile (HK:941) (CHL) rallied 0.9%, as the world's largest mobile carrier said it has received more than 1 million pre-orders for the iPhone before it goes on sale in the carrier's stores on Friday, at a time when Apple Inc. (AAPL) Chief Executive Tim Cook visited Beijing for future cooperation between the two giants. Telecom equipment shares also advanced, with ZTE Corp. (HK:763) (ZTCOF) rising 1.2%. Meanwhile, China Mobile's smaller rivals slipped, as China Unicom (HK:762) (CHU) dropped 0.7%, and China Telecom (HK:738) (CNCT) fell 0.5%. China South City Holdings (HK:1668) , a developer of logistics and trade centers, surged 56%, after the company announced that Internet giant Tencent Holdings (HK:700) (TCTZF) would invest about 1.5 billion Hong Kong dollars ($195 million) for an almost 10% stake in the developer in order to expand their business online, including e-commerce and online payment services. Tencent Holdings (HK:700)

Top 5 Telecom Stocks To Watch For 2015: Neustar Inc (NSR)

NeuStar, Inc., incorporated on December 8, 1998, is a provider of real-time information and analysis. The Company operates in three segments: carrier services, enterprise services and information services. The Company combines data sets to develop algorithms, models, point solutions and complete work flow solutions. The Company provides services, such as database services (telephone number databases, domain names, short-codes and fixed Internet protocol (IP) addresses), analytics platforms used for Internet security services, caller identification services, Web performance monitoring services and real-time information and analytics services. In October 2013, Neustar, Inc acquired Aggregate Knowledge, Inc.

Carrier Services

The Company�� carrier services include numbering services, order management services and IP services. Its numbering services enable the dynamic routing of calls and text messages. In particular, the Company provides near real-time updates to the North American telephone numbering system that is essential for the accurate routing of telephone calls and text messages. In addition, it also facilitates order management and work-flow processing among carriers, including telephone number inventory management, and allow carriers to manage and optimize the addressing and routing of IP communications. The numbering services the Company provides to its carrier customers using these databases include number portability administration center services (NPAC Services), in the United States and Canada and local number portability (LNP), services in Taiwan and Brazil, or international LNP solutions, and number inventory and allocation management. The Company�� order management services permit its carrier customers to exchange essential operating information with multiple carriers in order to provision and manage services. The Company provides these services through a single interface or on-premise installations. In addition, it offers inventory management services that! allow its carrier customers to manage their assigned telephone numbers and associated resources. The Company provides scalable IP services to global carriers and service providers that allow them to manage access for the routing of IP communications, such as multimedia messaging service. Its solutions also provide accurate and reliable routing of text messages and voice calls by identifying terminating service provider networks. In addition, it provides a solution for carriers to migrate from the public switched telephone network to IP Interconnect through mapping a phone number to an IP address for accurate and reliable routing to a carrier�� network.

Enterprise Services

The Company�� Enterprise Services include Internet infrastructure services and registry services. It provides Internet infrastructure services that its customers use in order to direct, prioritize and manage Internet traffic. In addition, enterprise customers rely on its services to optimize their Website performance, including protecting against malicious traffic. Enterprises use its infrastructure and its datasets to identify the location of their online customers for a variety of purposes, including fraud prevention and marketing. It also operates the authoritative common short codes registry on behalf of the United States wireless industry. The Company provides a suite of domain name systems (DNS) services to its enterprise customers built on a global directory platform. These services play a key role in directing and managing Internet traffic flow, resolving Internet queries, providing security protection against distributed denial of service attacks, providing geolocation services used to enhance fraud prevention and online marketing, and monitoring, testing and measuring the performance of Websites and networks. The Company operates the authoritative registries of Internet domain names for the .biz, .us, .co, .tel and .travel top-level domains. It also provides international registry gateways for! China�� s .cn and Taiwan�� .tw country-code top-level domains. All Internet communications routed to any of these domains must query a copy of its directory to ensure that the communication is routed to the appropriate destination. The Company also operates the authoritative common short codes registry on behalf of the United States wireless industry. In addition, it operates the user authentication and rights management system, which supports the UltraViolet digital content locker that consumers use to access their entertainment content.

Information Services

The Company�� Information Services include identification services, verification and analytics services, and local search and licensed data services. It utilizes databases and solutions to inform real-time decisions on customer initiated interactions over the telephone, Internet and at points of sale. Its services correlate attributes, such as demographic information, projected buying behaviors and location. Its business listings identity management services manage the placement of its customers��online local business listings on search engines, improving brand awareness and targeted advertising. The Company provides Caller ID services to carriers in the United States and real-time identification and location services to over 1,000 businesses in the United States across multiple industries. Its location service enables clients to match a 10-digit phone number to a latitude and longitude, and is used for a number of applications, including intelligent site planning, market scoring, and Web-based location lookup. In addition, it provides services that enable clients to remarket to non-converting prospects and to help identify whether an inbound inquiry is coming from an existing customer or a prospect. The Company provides lead verification services that allow clients to validate customer data, enhance leads and assign a lead quality rating to each lead to provide a client the ability to contact a customer. The Company provide! s an onli! ne local business listing identity management solution that serves local search platforms, national brands, authorized channel partners and local businesses. This service provides businesses and channel partners the essential tools to verify, enhance and manage the identity of local listings on local search platforms across the Web, and offers local search platforms an accurate, complete and up-to-date database of local business listings for online publishing.

The Company competes with Accenture plc, Computer Sciences Corporation, Hewlett-Packard Company, International Business Machines Corporation, Noblis, Inc., Nortel Networks Corporation, Pearson Education, Inc., Perot Systems Corporation, Telcordia Technologies, Inc., VeriSign, Inc., Afilias Limited, Oracle Corporation, Synchronoss Technologies, Inc., Syniverse Technologies, Inc., Akamai Technologies, Inc., F5 Networks, Inc., Keynote Systems, Inc., Compuware Corporation, TNS, Inc., eBureau, LLC, Acxiom, Nielsen Holdings N.V., DataLogix International Inc. and infoGROUP Inc.

Advisors' Opinion:

[By Magic Diligence]
Neustar (NSR) is a provider of a wide array of communications information services. Examining all of the different services Neustar provides is an article in itself, but let's try to order them in importance to the company from a standpoint of revenue.
[By Rex Moore]
You may not have heard of NeuStar (NYSE: NSR ) , but the services it provides can affect you greatly. This $3 billion company is also handily beating the market as it shifts its focus to move deeper into the information and analytics industry.
[By Rex Moore]
You may not have heard of NeuStar (NYSE: NSR ) , but the services it provides can affect you greatly. This $3 billion company is also handily beating the market as it shifts its focus to move deeper into the information and analytics industry.

Top 5 Telecom Stocks To Watch For 2015: BCE Inc. (BCE)

BCE Inc. provides communications solutions to residential, business, and wholesale customers primarily in Canada. The company offers local and long distance telephone services under the Bell Home Phone brand; direct-to-home satellite television (TV) services under the Bell TV name; Internet protocol TV services under the Bell Fibe TV brand; and personal video recorders and online access services. It also provides data services, including Internet access services under the Bell Internet name; Internet protocol based services; and information and communications technology solutions. In addition, the company engages in the rental, sale, and maintenance of business terminal equipment; sale of TV set-top boxes; and provision of network installation and maintenance services for third parties. Further, it offers wireless voice and data communications products and services, such as call display and voicemail, e-mail, Web browsing, social networking, text, picture and video messagi ng, music downloads, ring tunes, ringtones, games and applications, video streaming, live TV, mobile Internet, roaming, and global positioning system navigation services under the Bell and Virgin Mobile brands. Additionally, the company provides media services comprising TV programming services to broadcast distributors. It operates approximately 28 conventional over-the-air stations and 30 English and French-language specialty TV channels; 33 FM and AM radio stations and their related Websites; and Theloop.ca Website. As of December 31, 2012, the company served approximately 2.1 million high-speed Internet access customers through fiber-optic, digital subscriber line, or wireless broadband technology; and 7.7 million wireless customers. BCE Inc. offers its services through call centre representatives, independent dealer stores, and value-added resellers, as well as through its Websites. The company was founded in 1880 and is headquartered in Verdun, Canada.

Advisors' Opinion:

[By Dan Caplinger]
The big news for Madison Square Garden has been the success of its key sports franchises. The New York Knicks basketball team made the playoffs and earned the No. 2 seed in the Eastern Conference. Even more importantly, the long-delayed National Hockey League season finally got going in January, helping resurrect what many had feared would be a lost season, sending shares of MSG, as well as Canadian venue/team-owners Rogers Communications (NYSE: RCI ) and BCE (NYSE: BCE ) , higher. As it turned out, MSG's New York Rangers made the playoffs and will go up against the Washington Capitals in the first round. Playoffs are an especially lucrative time for sports viewership, and usually translate into extra profits for the company's broadcast businesses.
[By Holly LaFon]
Dalio�� next largest purchase was Berkshire Hathaway Inc. (BRK.B), and three new buys: BCE Inc. (BCE), The Goldman Sachs Group Inc. (GS), and Peabody Energy Corp. (BTU).