Saturday, November 30, 2013

Top Ten Retailer Stocks On Black Friday

Retailers are well into their Black Friday shopping day by now and we thought we'd take a look at how the stocks at ten leading retailers are reacting to early news of shopper enthusiasm. Recall that the National Retail Federation is forecasting that 140 million shoppers will hit the bricks this weekend, a decline from an estimated 147 million who were searching for Black Friday bargains last year.

Amazon.com Inc. (NASDAQ: AMZN) has been offering Black Friday deals all week and is now gearing up for Cyber Monday. Shares are trading about 1.5% higher just before noon on Friday at $392.17 after hitting a new 52-week high of $393 earlier this morning. The stock's 52-week low is $242.75.

Wal-Mart Stores Inc. (NYSE: WMT) announced this morning that it had rung up 10 million cash register transactions between 6 p.m. and 10 p.m. on Thanksgiving Day. The store also claimed that it served up 400 million page views at its website yesterday. Protests at 1,500 of the company's stores are also underway today. Shares are trading up fractionally at $80.97 after posting a new 52-week high of $81.34 earlier. The stock's 52-week low is $67.37

Target Corp. (NYSE: TGT) reported robust crowds for its early opening on Thanksgiving Day, but did not provide any numbers. The stock is trading down about 0.7% at $63.97 in a 52-week range of $58.01 to $73.50.

J.C. Penney Co. Inc. (NYSE: JCP) may have the most at stake of any retailer this weekend. Crowds were reported to be sparse at stores that opened Thursday night, but at least one report said that crowds kept trickling in all night. The stock is down about 0.2% at $10.06 in a 52-week range of $6.24 to $23.10. Penney's stock has gained nearly 11% in the past five trading days.

Macy’s Inc. (NYSE: M) opened on Thanksgiving evening for the first time this year and the company's CEO told Bloomberg TV this morning that 15,000 people were waiting to get into the company's flagship store in Herald Square. The stock price is down about 06.% now after posting a new 52-week high of $54.07 earlier. The 52-week low is $36.30.

Costco Wholesale Corp. (NASDAQ: COST) did not open at all on Thanksgiving and is open normal hours on Black Friday. The store does have a few specials for its member-customers, but "doorbuster" is not in the company's vocabulary. The stock is up about 0.2% at $125.59, near the top of its 52-week range of $96.51 to $126.12.

Best Buy Co. Inc. (NYSE: BBY) appears to be overcoming its role as a place where customers check out the stuff and then buy the product they want online ("showrooming"). The company is competing hard with Amazon on pricing and has implemented a price-matching guarantee as well. The stock is up nearly 1.5% at $40.16 in a 52-week range of $11.20 to $44.66.

Sears Holdings Corp. (NASDAQ: SHLD) has said nothing about store traffic at either its Sears or Kmart locations. Like Penney's, Sears needs a blockbuster holiday season to convince both management and investors that it remains a viable company. Doesn't look like good news, though, as the stock is down about 2.2% at $62.33 in a 52-week range of $38.40 to $67.50.

The TJX Companies Inc. (NYSE: TJX), like Costco, remained closed on Thanksgiving. The company has been one of the best performers in the retail sector over the past year with its stock price up almost 45%. No word from the company on traffic or sales at its T.J. Maxx and Marshall's Stores. Shares are down about 0.1% at $63.22 in a 52-week range of $40.98 to $64.09.

Kohl's Corp. (NYSE: KSS) opened most stores at 8:00 p.m. last night and won't close again until midnight tonight. The company has not had anything to say yet about its Thanksgiving Day traffic, nor has there been any claim for Black Friday success. The stock is down about 0.7% at $55.57 in a 52-week range of $41.35 to $59.00.

Friday, November 29, 2013

European Stocks Are Little Changed as Monte Paschi Gains

European stocks were little changed, heading for a third month of gains, as a report showed unemployment in the euro area fell from a record high. U.S. index futures rose, while Asian shares were also little changed.

Kesko Oyj, Finland's biggest publicly traded retailer, rallied 9 percent. Banca Monte dei Paschi di Siena SpA (BMPS) added 2 percent as Italy's third-largest lender set out a plan to return to profit after cutting costs and raising capital as part of its restructuring plan. Speedy Hire Plc sank the most since 2009 after the construction-equipment leasing company said it found evidence of false accounting at one of its units.

The Stoxx Europe 600 Index climbed 0.1 percent to 325.36 at 11:37 a.m. in London, trading near its highest level since May 2008. The gauge has risen 0.9 percent in November. Standard & Poor's 500 Index futures advanced 0.2 percent today following the Thanksgiving holiday yesterday. The U.S. stock market will close early at 1 p.m. New York time. The MSCI Asia Pacific Index increased 0.1 percent.

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"With the short trading day in the U.S. and the Thanksgiving holiday, volume is low and there aren't many impulses for big moves before next week," said Patrick Kraehenbuehl, a portfolio manager at Umblin AG in Zurich. "Sentiment is still very positive, with investors keeping an eye on economic data and many betting on a year-end rally."

The volume of shares changing hands in companies listed on the Stoxx 600 was 20 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.

Unemployment Rate

A Eurostat report showed that euro-area unemployment unexpectedly fell in October. The jobless rate declined to 12.1 percent from 12.2 percent in September. Economists had predicted it would remain at a record high.

S&P raised its outlook for Spain's debt to stable from negative, reducing the likelihood that the ratings company will cut the Mediterranean nation's rating to junk. S&P affirmed Spain at BBB-, its lowest investment grade.

The ratings company raised its score for Cyprus to B- from CCC+. It lowered the Netherlands to AA+ from AAA, citing weaker growth prospects than previously forecast.

Kesko jumped 9 percent to 27.53 euros, its highest price since February 2012. The company said it plans to sell some of its store sites and shopping malls to a real estate investment trust that it will set up in 2014. The trust, which Kesko will partly own, will hold assets in Finland, Sweden and Russia.

Rentokil Initial Plc (RTO) climbed 3.1 percent to 106 pence as Bank of America Corp. upgraded the U.K. pest-control and hygiene-services company to buy from neutral. The brokerage predicted that cash flow will improve in 2014 and 2015.

Speedy Hire

Speedy Hire slumped 15 percent to 54.8 pence. The company said late yesterday that it had found accounting irregularities within its international business, which mostly operates in the Middle East. Steve Corcoran resigned as chief executive officer. He will stay with the company until it finds a successor, according to a statement.

Speedy Hire forecast that the irregularities will reduce pretax profit for the financial year ending March 31 by about 3 million pounds ($4.9 million).

UPM-Kymmene Oyj (UPM1V) fell 3.9 percent to 12.18 euros. UBS AG lowered Europe's second-largest papermaker to sell from neutral. The brokerage said that demand for the company's product will not recover in Europe and that the industry will probably reduce its capacity next year.

TeliaSonera AB dropped 1.8 percent to 53.45 kronor, the most in 12 weeks. Sweden's largest phone company fired Chief Financial Officer Per-Arne Blomquist and three other senior employees as the fallout mounted from an ethics review. The company said in a statement today that its processes when it made acquisitions in former Soviet countries had fallen short of sound business practices.

Thursday, November 28, 2013

Navios: Full Speed Ahead

Some smart vulture investors have piled into dry bulk in recent months—and we already have a horse in this race, notes Igor Greenwald, editor of MLP Profits.

Wilbur Ross became famous for buying up bankrupt US steel mills on the cheap more than a decade ago, and then selling them years later, as demand recovered.

Two months ago, he dipped his toe into another tide of woe by investing in a new shipping venture, Nautical Bulk Holdings, which has raised more than $100 million, and ordered eight ultramax dry bulk behemoths at $24.5 million a pop, to meet rising demand as early as 2015.

Last month, Oaktree Capital (OAK), managed by another distressed investing icon, Howard Marks, disclosed a huge 21.9% stake in Star Bulk Carriers (SBLK).

Why are these financial sharpshooters taking aim at a sector thoroughly beaten down by years of oversupply? Presumably, they've spotted a turning point on the horizon.

International shipping rates, as represented by the Baltic Dry index (BDIY:IND), remain down more than 60% from rates seen as recently as 2010, and before that, as early as 2003.

Yet Asian demand for iron ore, coal, and grain keeps growing, while depressed rates have depressed investment in new ships and encouraged the accelerated scrapping of older carriers.

As a result, the dry bulk shipping market may end this year in rough balance for the first time since 2008, after years of oversupply.

Our Aggressive Portfolio already includes one beneficiary of these trends—Navios Maritime Partners (NMM), a partnership with 25 dry bulk carriers, and now, five newly-acquired container ships.

A transformative container ships acquisition has changed the conversation, from when the distribution will be cut, to when it might be raised.

With these ten-year charters in place, the two high-rate charters (expiring next year) no longer pose a material distribution risk. On the whole, Navios ships are newer and therefore more efficient than the industry average.

The balance sheet is similarly fit. Net debt is just 13.7% of capitalization, and the bulk of the attractively-priced borrowing doesn't mature until 2018.

A relatively secure double-digit yield tends not to last long in this era of low rates. So, while NMM units have already rallied 15% since we upgraded them to Buy two months ago, more gains likely lie ahead. Buy NMM below $17.70, a level at which the current distribution would still yield 10%.

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Wednesday, November 27, 2013

TiVo (TIVO) Tumbles Despite Solid Subscriber Growth

NEW YORK (TheStreet) -- TiVo (TIVO) shares fell, despite beating earnings estimates and posting strong subscriber growth. Shares tumbled 3.9% to $12.73 as investors grew bearish on the company.

The cable DVR provider reported third-quarter net income of 10 cents, 4 cents higher than analysts polled by Thomson Reuters had anticipated. Service and technology sales (excluding hardware sales) came in at $81.7 million, 34% more than the year-ago quarter, and beat consensus by $400,000.

Boosting sales were strong growth in cable television subscriptions. In the third-quarter, the company added 295,000 subscribers, likely lured by TiVo's offering which allows additional access to streaming services such as Netflix (NFLX) and YouTube. Its total subscriber base, which has grown for nine consecutive quarters, sits at approximately 3.9 million, 32% higher than a year earlier.

CEO Tom Rogers said in a statement the quarter marked "our strongest cable distribution results to date as well as best subscription growth in several years. In fact, [it's] the best quarter for TiVo subscription growth since TiVo began mass distribution of its technology and services in the cable DVR market." For its fourth-quarter, the San Jose-based business foresees service and technology revenue between $83 million and $85 million, approximately 30% higher than the same period a year earlier. Forecasted sales were in line with consensus. Analysts were mostly positive on the stock. Goldman Sachs raised its price target to $16 from $15, "as we continue to see stronger business traction and improving profitability trends as near- to mid-term catalysts for the shares." Similarly, Jefferies reiterated a "buy" rating and raised its price target to $16 from $15, on the view the company is only 25% penetrated against the millions of potential subscribers. BMO Capital Markets reiterated its "outperform" rating and $15 price target. "With what we believe to be a compelling valuation and positive growth trends, we continue to see TiVo as a solid play in the evolving advanced television landscape," wrote analyst Edward S. Williams. Brean Capital remained positive, but with an asterisk. The investment firm maintained its $14 price target and "buy" rating, "but with the caveat that we would wait for a pull-back to be more aggressive." TheStreet Ratings team rates TiVo Inc as a Buy with a ratings score of B. The team has this to say about their recommendation: "We rate TiVo Inc (TIVO) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, notable return on equity, reasonable valuation levels and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results." You can view the full analysis from the report here: TIVO Ratings Report
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Tuesday, November 26, 2013

The Time For Cyclical Stocks Is Now

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While it's taken us roughly five years to get here, the global economy seems to be finally firing on all cylinders. Unemployment rolls are dropping, GDP growth is returning to struggling Europe and critical emerging markets- like China- are once again realizing production gains. All in all, that's sent the SPDR Dow Jones Industrial Average (NYSE:DIA) to record highs.

As we've moved passed the recovery phase of the business cycle, the time to bet on more "economically sensitive" stocks could be at hand. For investors, the cyclical stocks could prove to be the best buys in the upcoming year.

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Cyclical stocks are technically defined as those companies whose fortunes are closely tied to a booming economy. These include basic materials, technology and industrial firms and they will often see revenues rise when the economy is really cooking. Given the bullish prospects of 2014, they could just be the superstars of next year.

According to analysts at S&P Capital IQ, recent bullish factors will help drive the cyclicals higher in the months ahead. In the U.S., the housing market continues to improve as both pending home sales as well as new housing starts have been increasing over the last year. At the same time, the hydraulic fracturing boom has sent energy prices into the basement, benefiting both retail and industrial consumers of energy. Corporate technology spending has also improved as sales of productivity software and new devices have climbed.

Across the pond in Europe, economic growth has also returned- with many nations in the struggling Eurozone having moved out of recession. The continents debt woes have also quitted down in recent months. Likewise, Japan's efforts to stimulate its stagnant economy have begun to bear fruit and many emerging markets are still producin! g swift GDP growth.

All in all, these factor should help propel earnings and stock valuations for the cyclicals.

Capital IQ predicts that earnings per share for the cyclicals in the S&P 500 should grow by 10.6% in 2014. That's up from just 5.6% earnings growth this year. Already, the analysts' predictions seem to be coming true. The various cyclical sectors have beat earnings forecasts by a wider margin than the broader index. Meanwhile, defensive sectors like utilities and consumer staples have failed to impress.

According, to Capital IQ, the projected earnings growth has the cyclicals are trading at a P/E of just 14.9. Making them "reasonably priced" and set for growth.

Playing The Cyclical Shift

Given that we've now moved into an economic expansion, the time to bet heavily on the cyclicals could be now. That means overweighting the industrials, materials and consumer discretionary sectors is order.

It stands to reason that manufacturing will continue to rise as the economy expands. Already, many industrial firms like Rockwell Automation Inc. (NYSE:ROK) and Emerson Electric (NYSE:EMR) have recently been reporting more mega-contracts for their products. ROK alone sees the energy boom adding roughly $100 million to its sales next year. All of this improved activity could make the iShares U.S. Industrials ETF (NYSE:IYJ) a major buy. The ETF tracks 223 different economically sensitive firms- including EMR, ROK and stalwarts like General Electric (NYSE:GE). All for just 0.45% in expenses.

Led by gains at Under Armor (NYSE:UA) and coffee purveyor Starbucks (Nasdaq: SBUX), consumer discretionary stocks are set to see a big 10.2% gain in earnings growth in 2013. As consumers open their wallets towards items that they "want" instead of "need", the Consumer Discretionary Select Sector SPDR (NYSE:XLY) could be a huge winner. While the ETF isn't cheap on a P/E basis, the fund should keep rising as the economy keeps expanding.

Finally, fueling an economic expansion falls to the basic materials companies. Everything from oil and natural gas to copper and steel will be in greater demand as GDP keeps going. Meanwhile, Capital IQ's data shows that both energy and materials names are some of the cheapest sectors in the S&P- giving investors the best "bargains". Pairing the ultra-cheap expense ratios (0.14%) of the Vanguard Energy ETF (NYSE:VDE) and Vanguard Materials ETF (NYSE:VAW) gives investors plenty of exposure to both sectors- currently 298 different stocks.
!
The Bottom Line

Its official, the data is pointing towards the next phase of the business cycle- economic expansion. That means, it's time for investors to load up on cyclical stocks. As these firms profit from the expanding economy, portfolios should benefit as well. The previous picks in the materials, consumer and industrial sectors make a great way to overweight the cyclicals.

Monday, November 25, 2013

Is eBay a Buy After a Recent Announcement?

With shares of eBay (NASDAQ:EBAY) trading around $51, is EBAY an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Ebay provides online platforms, tools, and services to help individuals and merchants with online and mobile commerce in the U.S. and around the world. Its marketplaces segment operates e-commerce platform eBay.com, and vertical shopping sites. The company operates through three segments: Marketplaces, Payments, and GSI. Ultimately, through its tools and platforms, eBay assists individuals and merchants around the globe engage in online and mobile commerce.

Ebay shares dropped in premarket trading even though the company's earnings for the third quarter beat analyst forecasts, as eBay gave softer-than-expected guidance, citing that the e-commerce market in the U.S. will weaken slightly in the fourth quarter and maintaining a “cautious outlook for the holiday season.” EPS came in at 64 cents, beating expectations, and revenue grew 14 percent to $3.89 billion but missed forecasts. PayPal has continued to show strong growth, with sales increasing 19 percent in the third quarter, and that growth will be aided in the future by eBay's recent $800 million acquisition of Braintree Payment Solutions.

T = Technicals on the Stock Chart Are Mixed

Ebay stock has seen positive progress in recent years. The stock has struggled this year as it continues to pullback from nearly hitting all-time highs. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, eBay is trading below its key averages, which signal neutral to bearish price action in the near-term.

EBAY

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Ebay options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Ebay Options

30.78%

3%

2%

What does this mean? This means that investors or traders are buying a very minimal amount of call and put options contracts as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

November Options

Steep

Average

December Options

Steep

Average

As of today, there is an average demand from call buyers or sellers and high demand by put buyers or low demand by put sellers, all neutral to bearish over the next two months. To summarize, investors are buying a very minimal amount of call and put option contracts and are leaning neutral to bearish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Ebay’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Ebay look like and more importantly, how did the markets like these numbers?

2013 Q3

2013 Q2

2013 Q1

2012 Q4

Earnings Growth (Y-O-Y)

16.36%

-7.55%

15.91%

-62.10%

Revenue Growth (Y-O-Y)

14.34%

14.10%

14.37%

18.14%

Earnings Reaction

-4.00%*

-6.72%

-5.84%

2.40%

Ebay has seen mixed earnings and rising revenue figures over the last four quarters. From these numbers, the markets have expected more from eBay’s recent earnings announcements.

* As of this writing

P = Excellent Relative Performance Versus Peers and Sector

How has Ebay stock done relative to its peers, Amazon (NASDAQ:AMZN), Overstock (NASDAQ:OSTK), Mercadolibre (NASDAQ:MELI), and sector?

eBay

Amazon

Overstock

Mercadolibre

Sector

Year-to-Date Return

1.16%

23.41%

77.99%

74.82%

45.34%

Ebay has been a weak performer, year-to-date.

Conclusion

Ebay is an established company that has made a name for itself pioneering internet commerce. A recent earnings announcement has investors disappointed with the company. The stock has moved higher in recent years but is now pulling back as it digests gains from a recent run. Over the last four quarters, earnings have been mixed while revenues have been rising which has left investors to expect more from the company. Relative to its peers and sector, eBay has been a weak year-to-date performer. WAIT AND SEE what eBay does this coming quarter.

Sunday, November 24, 2013

Shared work spaces grow in popularity

DETROIT -- For years, Rob Cousineau and his partners operated their video editing company, Get Super Rad, from their homes. Earlier this year, they decided a more grown-up place was in order and moved to Venture Park, a shared working space in Royal Oak.

They wanted the benefits and amenities of an office without the high cost — or long-term commitment — so they could work around other young, creative entrepreneurs.

The coworking space, which was a hotel years ago, offers a variety of options, from small enclosed offices with lofts to what looks like a table at a coffee shop. In fact, in one large room, Venture Park is building a coffee bar to create a social atmosphere.

"You ever talk to people who are so excited about what they are doing it inspires you?" Cousineau, 30, asked. "That's what it's like to work at Venture Park."

The trend of coworking — putting several, small independent companies and professionals under the same roof — has been growing in the past five years. It has been driven largely by technology, enterprising 20-somethings and, in Michigan, workers who started small businesses or started to freelance after being downsized.

Deskmag, an online magazine about coworking, publishes an annual Global Coworking Survey that estimated there are more than 110,000 people working in nearly 2,500 spaces worldwide, an increase of 83% from last year.

"In some ways this is a trend of going back to the workplace," said Margaret Williams, the interim dean of Wayne State University's School of Business Administration. "A lot of it is driven by the millennial generation and their affinity for social connections."

Coworking allows entrepreneurs who might otherwise toil alone at home — or set up temporary digs at a coffee shop table — to have a permanent business address, access to a conference room and also to socialize with office mates.

"Coworking is all about bringing flexibility to an office, and that appeals to entrepreneurs," said Derek Tur! ner, director of business development at Grand Circus in Detroit. Grand Circus, which opened this year, offers about 40 offices on a daily, weekly and monthly rate. "They don't always know where their company will be in two years."

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At the same time, coworking helps separate personal and professional spaces, said Todd Luhtanen, the founder of Metro Work Spaces in Livonia. One entrepreneur, he said, even opened an office there at his wife's request. Luhtenan said an office lends a small business gravitas and credibility.

"You do not want to bring someone into your basement, den or living room for a meeting," he said.

Jacob Zuppke, a managing partner of Venture Park, said he and his partners stumbled on the space they are developing now when seeking offices for his digital marketing agency, Traffic Digital Agency. The spaces rent on a month-to-month basis with utilities, and amenities such as hot coffee are included.

Venture Park also offers professional services, such as access to attorneys, at a discounted rate.

Still, Cousineau said, even though they moved into an office, they didn't want it to feel like one. To keep it fun, they hung a stuffed wild boar head wearing a cap on the wall, and they've covered the shelves with action figures and other toys from their youth.

"It's good to be surrounded by forward-thinking people," he said. "It makes work fun."

Saturday, November 23, 2013

5 Stocks Triggering Breakouts on Unusual 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.

 

 

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.

 

 

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

 

Intuitive Surgical

 

Intuitive Surgical (ISRG) designs, manufactures and markets da Vinci Surgical Systems, EndoWrist instruments and surgical accessories. This stock closed up 4.5% to $380.99 in Monday's trading session.

 

Monday's Volume: 741,000

Three-Month Average Volume: 658,592

Volume % Change: 56%

 

Shares of ISRG jumped sharply higher on Monday after William Blair said it's time to start accumulating shares of Intuitive Surgical after watching presentations on one of Intuitive's surgical system, da Vinci.

 

 

From a technical perspective, ISRG ripped higher here right above some near-term support at $360 with above-average volume. This stock recently formed a double bottom chart pattern at $357.02 to $358.02. Following that bottom, shares of ISRG have started to rebound strongly and move within range of triggering a near-term breakout trade. That trade will hit if ISRG manages to take out Monday's high of $382.31 to more resistance at $401 with high volume.

 

Traders should now look for long-biased trades in ISRG as long as it's trending above Monday's low of $362.29 and then once it sustains a move or close above those breakout levels with volume that hits near or above 658,592 shares. If that breakout hits soon, then ISRG will set up to re-fill some of its previous gap down zone from July that started near $430. An even bigger gap down zone sits right above $432.50, so keep that level in mind if ISRG clears it with volume soon.

 

Galectin Therapeutics

 

Galectin Therapeutics (GALT) offers drug research and development to create new therapies for fibrotic disease and cancer. This stock closed up 9.6% to $12.06 in Monday's trading session.

 

Monday's Volume: 674,000

Three-Month Average Volume: 222,171

Volume % Change: 149%

 

Shares of GALT jumped higher on Monday after Ascendiant initiated coverage on the stock with a buy recommendation.

 

 

From a technical perspective, GALT spiked sharply higher here with strong upside volume. This stock has been uptrending for the last three months, with shares ripping higher from its low of $3.95 to its recent high of $13.21. During that move, shares of GALT have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GALT within range of triggering a near-term breakout trade. That trade will hit if GALT manages to take out Monday's high of $12.44 and then once it clears its 52-week high at $13.21 with high volume.

 

Traders should now look for long-biased trades in GALT as long as it's trending above some near-term support levels at $11 or at $10 and then once it sustains a move or close above those breakout levels with volume that hits near or above 222,171 shares. If that breakout hits soon, then GALT will set up to enter new 52-week-high territory above $13.21, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $16.

 

Penn National Gaming

 

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

 

Monday's Volume: 1.11 million

Three-Month Average Volume: 824,334

Volume % Change: 73%

 

 

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

 

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

 

Kraft Foods Group

 

Kraft Foods Group (KRFT) is a consumer packaged food and beverage company. This stock closed up 1.1% at $53.85 in Monday's trading session.

 

Monday's Volume: 8.60 million

Three-Month Average Volume: 2.75 million

Volume % Change: 186%

 

 

From a technical perspective, KRFT jumped modestly higher here right above its 200-day moving average of $51.99 with strong upside volume. This move briefly pushed shares of KRFT back above its 50-day moving average at $53.95, before the stock closed just below that level at $53.85. Shares of KRFT are now starting to trend within range of triggering a near-term breakout trade. That trade will hit if KRFT manages to take out Monday's high of $54.36 and then once it clears some near-term overhead resistance at $55.65 with high volume.

 

Traders should now look for long-biased trades in KRFT as long as it's trending above its 200-day at $51.99 and then once it sustains a move or close above those breakout levels with volume that's near or above 2.75 million shares. If that breakout hits soon, then KRFT will set up to re-test or possibly take out its next major overhead resistance levels at $57.75 to its 52-week high at $58.75.

 

Men's Wearhouse

 

Men's Wearhouse (MW) is a retailer of men's suits and a provider of tuxedo rental product in the U.S. and Canada. This stock closed up 1.7% at $35.34 in Monday's trading session.

 

Monday's Volume: 2.74 million

Three-Month Average Volume: 530,638

Volume % Change: 353%

 

 

From a technical perspective, MW bounced modestly higher here right off its 200-day moving average of $34.14 with monster upside volume. This stock recently gapped down sharply from $39 to below $34 with heavy downside volume. Following that move, shares of MW went on to hit a low of $32.46, but the stock has now started to rebound solidly off that low. Shares of MW are now quickly moving within range of triggering a big breakout trade. That trade will hit if MW manages to take out Monday's high of $35.47 and then once it clears its gap down day high of $35.90 with high volume.

 

Traders should now look for long-biased trades in MW as long as it's trending above its 200-day at $34.14 or above $33.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 530,638 shares. If that breakout hits soon, then MW will set up to re-fill some of its previous gap down zone from September that started at $39.

 

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:

 

>>4 Stocks Under $10 Making Big Moves

 

>>4 Hot Stocks to Trade (or Not)

 

>>3 Huge Tech Stocks on Traders' Radars

 

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.


Friday, November 22, 2013

2 Tech 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 Insiders Love Right Now

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 Toxic Stocks to Sell Before It's Too Late

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

Aspen Technology

Aspen Technology (AZPN) supplies process optimization software, which allows manufacturers to implement best practices for optimizing their engineering, manufacturing and supply chains. This stock closed up 1.4% at $37.64 in Wednesday's trading session.

Wednesday's Volume: 637,000

Three-Month Average Volume: 410,726

Volume % Change: 59%

>>5 Stocks Set to Soar on Bullish Earnings

From a technical perspective, AZPN spiked modestly higher here right off some near-term support at $37 with above-average volume. This stock has been trending sideways and consolidating for the last month, with shares moving between $36 on the downside and $39.02 on the upside. This spike higher on Wednesday is now starting to push shares of AZPN within range of triggering a breakout trade above the upper-end of its recent range. That breakout will hit if AZPN manages to take out some key overhead resistance levels at $38.42 to its 52-week high at $39.02 with high volume.

Traders should now look for long-biased trades in AZPN as long as it's trending above support at $37 or at $36 and then once it sustains a move or close above those breakout levels with volume that's near or above 410,726 shares. If that breakout hits soon, then AZPN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $45 to $47.

Juniper Networks

Juniper Networks (JNPR) designs, develops and sells products and services that provide network infrastructure for networking requirements of service providers, enterprises, governments and research and public sector organizations worldwide. This stock closed up 2.5% to $19.90 in Wednesday's trading session.

Wednesday's Volume: 12.24 million

Three-Month Average Volume: 6.01 million

Volume % Change: 109%
P/>>>5 Big Stocks to Trade Big Gains

From a technical perspective, JNPR spiked modestly higher here right off its 200-day moving average of $19.52 with above-average volume. This stock has been uptrending for the last month, with shares moving higher from its low of $18.36 to its recent high of $20.11. During that move, shares of JNPR have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of JNPR within range of triggering a near-term breakout trade. That trade will hit if JNPR manages to take out Wednesday's high of $20.01 to more near-term resistance at $20.11 with high volume.

Traders should now look for long-biased trades in JNPR as long as it's trending above its 200-day at $19.52 or above $19 and then once it sustains a move or close above those breakout levels with volume that hits near or above 6.01 million shares. If that breakout hits soon, then JNPR will set up to re-test or possibly take out its next major overhead resistance levels at $22 to its 52-week high at $22.98. Any high-volume move above those levels will then give JNPR a chance to tag $24 to $25.

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:



>>Profit From 5 Trades Warren Buffett Made



>>5 Rocket Stocks for Another Week of New Highs



>>5 Stocks Poised for Breakouts

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.


Thursday, November 21, 2013

Avoid These 4 Common Investing Mistakes

It's been a great year for investors who stayed in the market, and stayed disciplined. The S&P 500 is up more than 25% on the year, and the Dow Jones Industrial Average has gained 21%.

But making money isn't just about finding stocks/investments that will increase in price. It also involves avoiding the common investing mistakes that prevent retail investors from enjoying record-high markets.

To make sure you aren't making any of those money-losing mistakes, here's a list of the four worst investing strategies we see happening today.

Four Common Investing Mistakes Made Today

Investing Mistake #1: Not Investing at All: The financial crisis has caused millions of Americans to lose confidence in the markets. Today, only 50% of middle-class Americans own stocks or bonds. That is down from 66% in 2008.

Instead, some people have all their money sitting in savings accounts right now. The bank pays them a whopping 0.2% to store their money, while the bank leverages it elsewhere in its own house account.

It's easy to grow fearful of another major market event. But the markets have stormed back since 2009, rising more than 100% - and those are gains you can't get any of unless you invest.

There are always safe companies with strong fundamentals that can absorb market shock. There are international equities that provide safe returns at lower risks. It's just a matter of knowing the types of companies to invest in.

Our Chief Investment Strategist Keith Fitz-Gerald recommends investing some of your money in companies he calls "Glocals." These are companies that are both local to the United States and have an international presence, helping you capture growth from the international markets, even during problems at home.

Investing Mistake #2: Not Using Trailing Stops: If you own stocks or equities, there is little reason for you not to use trailing stops. Without them, you can lose your profits - and your principle.

Trailing stops are a stop-loss order that investors can set according to the price of their stock as it increases or decreases. The stop is set at a percentage lower than the current price. They are important because in times of volatility, an investor is able to sell his or her position automatically to protect both gains and principle.

For example, if you purchase a stock at $100 and we set a 25% stop on it, the sell order would trigger at $75.

Trailing stops protect your gains so well because as share prices rise, so do the stop losses. Over time, the goal is to protect the profits you gain after owning the equity for a longer period of time.

But by protecting yourself on the downside, you can prevent losses from becoming catastrophic. Otherwise, you'll be chasing the stock to earn back your profits when you could reallocate your capital to a better opportunity and potential return.

Investing Mistake #3: Having a "Paycheck Mentality" When You Invest: A lot of investors seem to believe that owning stock is like earning a paycheck. Each week, they buy and sell stocks (paying outlandish broker fees) to attempt to capture small gains earned from short-term price movements.

Sure, there are times to engage in short-term plays with options and other vehicles when something is mispriced (that's exactly what our Strike Force service does).

But for most investors, that isn't a long-term plan. When it comes to your portfolio, and, especially your retirement, buying and selling at a fever pitch is the wrong approach.

Famed investor Jim Rogers once told me that investors need to treat their investment decisions as if they only had 15 trades to make... in their entire lives. That requires patience and diligence with each decision. This also this means that it's important to remain calm, utilize strategies like trailing stops to resist selling urges, and let your money do the work for you over time.

Investing Mistake #4: Lacking an Investment Strategy or Not Sticking to One: You wouldn't build a house without a blueprint, would you?

Because, if you would, I wouldn't want to live in that house.

The same goes with investing. You need to stick to a regimen. There are many different strategies out there that might fit your risk tolerance, asset levels, and general knowledge.

We call ours the "50-40-10" allocation model. Money Map Report readers know it well. It forms the basis of our Money Map Method.

You see, traditional diversification strategies are completely wrong. They are based on the allocation of capital with no regard for risk. As a result, they are frequently and often completely out of line with financial conditions, which can change month by month, or even hour by hour.

Consider a classic 60/40 portfolio of stocks and bonds, for example. For years that was okay because people simply split their capital into chunks between the two asset classes, not realizing that the 60% in stocks translated into 90% of the risk being carried by their equities.

The 50-40-10 portfolio is focused on a group of core economic realities - equities, interest-rate instruments, income production, commodities, and systemic credit. This focus makes the overall portfolio less susceptible to economic downturns because the risk is much more evenly distributed. Furthermore, because The Money Map Method requires that we constantly rebalance our risk, we can easily shift with varying market phases - growth, contraction, inflation, and even sentiment-driven events - all without placing significant portions of our capital at risk.

For more on The Money Map Method, here's an excerpt from Fitz-Gerald's book: "The Secret to Superior Returns"

Wednesday, November 20, 2013

Can Salesforce.com Continue Its Uptrend?

With shares of Salesforce.com (NYSE:CRM) trading around $53, is CRM an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Salesforce is a provider of enterprise cloud computing and social enterprise solutions. The company provides a customer and collaboration relationship management applications through the Internet or cloud. Salesforce delivers its service through Internet browsers and mobile devices and markets its social enterprise applications and platforms to businesses on a subscription basis. Cloud computing — the use of Internet-based computing, storage, and connectivity technology to deliver a variety of different services — has generated a lot of buzz in recent years.

Salesforce.com reported third-quarter results that came in slightly above estimates due to strong performance from the recently acquired email targeting firm ExactTarget, Reuters reports. Salesforce's revenue rose 36 percent to $1.08 billion and earnings came in at 9 cents a share. Salesforce shareholders were skeptical about the $2.5 billion acquisition of ExactTarget back in June, but in its earnings report Salesforce increased ExactTarget's yearly estimated revenue from $140 million to $180 million.

T = Technicals on the Stock Chart Are Strong

Salesforce.com stock has been trending higher over the last several months. The stock is currently trading near all-time high prices and looks poised to continue. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Salesforce.com is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

CRM

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Salesforce.com options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Salesforce.com Options

36.47%

26%

24%

What does this mean? This means that investors or traders are buying a minimal amount of call and put options contracts as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

December Options

Flat

Average

January Options

Flat

Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a minimal amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Salesforce.com’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Salesforce.com look like and more importantly, how did the markets like these numbers?

2013 Q3

2013 Q2

2013 Q1

2012 Q4

Earnings Growth (Y-O-Y)

-46.15%

-18.18%

-200.00%

-378.67%

Revenue Growth (Y-O-Y)

36.48%

30.80%

28.35%

32.09%

Earnings Reaction

-2.72%*

12.55%

8.29%

-17.28%

Salesforce.com has seen decreasing earnings and increasing revenue figures over the last four quarters. From these numbers, the markets have been upbeat about Salesforce.com’s recent earnings announcements.

* As of this writing

P = Excellent Relative Performance Versus Peers and Sector

How has Salesforce.com stock done relative to its peers, Oracle (NASDAQ:ORCL), SAP (NYSE:SAP), Microsoft (NASDAQ:MSFT), and sector?

Salesforce.com

Oracle

SAP

Microsoft

Sector

Year-to-Date Return

28.26%

4.02%

2.15%

38.26%

20.17%

Salesforce.com has been a relative performance leader, year-to-date.

Conclusion

Salesforce is a leading provider of cloud computing and CRM technology to companies and consumers worldwide. The company reported third-quarter results that came in slightly above estimates due to strong performance from the recently acquired email targeting firm ExactTarget. The stock has been trending higher over the last several months and is currently trading near all time highs. Over the last four quarters, investors have been upbeat about the company as earnings have been decreasing while revenues have been exploding. Relative to its peers and sector, Salesforce.com has been a year-to-date performance leader. Look for Salesforce.com to continue to OUTPERFORM.

Monday, November 18, 2013

Take-Two Interactive Software Inc. (TTWO): Grand Theft Auto V A Game And Stock Price Changer

Take-Two Interactive Software Inc. (TTWO) is probably going to steal the show on Wall Street today. After Wednesday's close, the Multimedia & Graphics Software maker announced "Grand Theft Auto V" generated $800 million in global sales in the first 24 hours. Humpday – yeah!

Strauss Zelnick, Chairman and CEO of Take-Two said, "Beginning at midnight on Monday, consumers around the world gathered in anticipation to be among the first to experience the evolution of this remarkable series. In North America alone, more than 8,300 stores opened their doors at midnight to welcome fans whose loyalty and enthusiasm were rewarded with what The New York Times called 'the most immersive spectacle in interactive entertainment'. We are incredibly proud of Rockstar Games' creative achievement and could not be more pleased with the success of this launch."

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Investors are likely next in line to be "more pleased with the success of this launch." Shares are up more than $1 following the welcome news.

Let's rewind the clock to April 29, 2008 when "Grand Theft Auto IV" was released to see what the future might hold for TTWO share price.

If 2008 is any indication, the stock might not do so well following the initial response. Back when Kung-Fu Panda and Wall-E were movies to see, the game sold more than 3.6 million copies on its first day of availability and six million copies in the first week of availability generating $500 million in sales.

On the day of 2008's release, Take-Two's shares closed at $ 26.63. On June 5, 2008, the stock peaked for the year, closing at $27.65.  TTWO shareholders certainly hope history doesn't repeat.

Fast-forward to today, using 2008 as a guide, first week sales for "Grand Theft Auto V" should tack on another 67% to day one's total. And the calculator says, $1.37 billion.

Wall Street forecast sales of $793.85 million for the current quarter. iStock has this funny feeling that some revisions are coming, probably as early as today. On the current consensus of $793.85M, analysts expect EPS of $1.38, which works out to a net-margin of 15.12%. If we carry the projected profit percent across our sales estimate, EPS could come in closer to $2.38, just from "Grand Theft Auto V."

If we are close, Wall Street could add $1 or more to the current fiscal 2014's full-year estimate of $2.51 or $3.51 per share. At a P/E of 10, well, you can do the math.

Overall: iStock believes "Grand Theft Auto V" could be a game-changer for Take-Two Interactive Software Inc. (TTWO). Early numbers will likely lead to a rash of earnings revisions and upgrades, which usually push stock prices higher.

Saturday, November 16, 2013

5 Stocks Poised for Breakouts

DELAFIELD, Wis. (Stockpickr) -- Trading stocks that trigger major breakouts can lead to massive profits. Once a stock trends to a new high, or takes out a prior overhead resistance point, then it's free to find new buyers and momentum players that can ultimately push the stock significantly higher.

One example of a successful breakout trade I flagged recently was biotechnology player Organovo (ONVO), which I featured in Aug. 16's "5 Stocks Poised for Breakouts" at $6 a share. I mentioned in that piece that shares of ONVO had started to reverse its downtrend and the stock was beginning to enter a new uptrend. That move was quickly pushing shares of ONVO within range of triggering a near-term breakout trade above some key overhead resistance levels at $6.20 to $6.65 a share.

Guess what happened? Shares of ONVO went on to trigger that breakout in late October with monster upside volume. Prior to breaking out, shares of ONVO were able to hold some key near-term support at around $5 a share, which ended up being the floor for the stock over the last two months and change. Shares of ONVO have now tagged an intraday high today of $13.43 a share, which represents a monster gain of over 100% since the time of my original article. This stock has now entered extremely overbought territory, since its current relative strength index reading is 88.

Breakout candidates are something that I tweet about on a daily basis. I frequently tweet out high-probability setups, breakout plays and stocks that are acting technically bullish. These are the stocks that often go on to make monster moves to the upside. What's great about breakout trading is that you focus on trend, price and volume. You don't have to concern yourself with anything else. The charts do all the talking.

Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels, and hold above those breakout prices, then it can easily trend significantly higher.

With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.

Veeva Systems

One stock that's starting to enter breakout territory here is Veeva Systems (VEEV), which is a provider of industry-specific cloud-based software solutions for the life sciences industry. This stock is off to a decent start since its IPO in October, with shares up 9%.

If you take a look at the chart for Veeva Systems, you'll notice that this stock found some buying interest over the last few weeks, when shares traded down near $35 and $36 a share. Shares of VEEV have now started to spike sharply higher off its recent low of $36.60 a share, and that move is quickly pushing shares of VEEV into breakout territory above some near-term overhead resistance at $40.62 a share.

Traders should now look for long-biased trades in VEEV if it manages to break out above some near-term overhead resistance levels at $40.62 a share to Friday's intraday high of $41.05 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.27 million shares. If that breakout hits soon, then VEEV will set up to re-test or possibly take out its next major overhead resistance levels at $44.62 to its all-time high at $49 a share. Any high-volume move above those levels will then give VEEV a chance to trend well north of $50 a share.

Traders can look to buy VEEV off any weakness to anticipate that breakout and simply use a stop that sits right below Friday's low of $38.64 a share, or near $36.60 a share. One can also buy VEEV off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Herbalife

Another stock that looks poised to trigger a near-term breakout trade is Herbalife (HLF), a global nutrition company that sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products as well as personal care products. This stock is off to a hot start in 2013, with shares up sharply by 108%.

If you take a look at the chart for Herbalife, you'll notice that this stock is spiking sharply higher here right off its 50-day moving average of $66.52 a share. That spike is quickly pushing shares of HLF within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in HLF if it manages to break out above some near-term overhead resistance at $70.33 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 2.67 million shares. If that breakout hits soon, then HLF will set up to re-test or possibly take out its 52-week high at $74.94 a share. Any high-volume move above its 52-week high will then give HLF a chance to tag $85 to $90 a share.

Traders can look to buy HLF off any weakness to anticipate that breakout and simply use a stop that sits right below Friday's low of $65.86 a share, or below $65 to $65 a share. One could also buy HLF off strength once it takes out $70.33 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Infinity Pharmaceuticals

One biotechnology player that's starting to move within range of triggering a near-term breakout trade is Infinity Pharmaceuticals (INFI), which discovers, develops and delivers medicines for the treatment of cancer and related conditions. This stock has been hammered by the bears so far in 2013, with shares down sharply by 59%.

If you take a look at the chart for Infinity Pharmaceuticals, you'll notice that this stock has been downtrending badly over the last two months and change, with shares plunging lower from its high of $21.60 to its recent low of $11.57 a share. During that downtrend, shares of INFI have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of INFI have now started to rebound sharply off that $11.57 low and it's quickly moving within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in INFI if it manages to break out above some near-term overhead resistance levels at $14.60 to $15.40 a share, and then once it takes out its 50-day moving average of $16.04 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 767,245 shares. If that breakout triggers soon, then INFI will set up to re-test or possibly take out its next major overhead resistance levels at $17.63 to $19 a share. Any high-volume move above those levels will then give INFI a chance to tag $20 to $21 a share.

Traders can look to buy INFI off any weakness to anticipate that breakout and simply use a stop that sits right below $13 to $12.50 a share. One can also buy INFI off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Silver Spring Networks

A technology stock that's quickly moving within range of triggering a big breakout trade is Silver Spring Networks (SSNI), which provides a networking platform and solutions that enable utilities to transform the power grid infrastructure into the smart grid. This stock has been on a hot streak over the last six months, with shares up by 22%.

If you look at the chart for Silver Spring Networks, you'll notice that this stock has been uptrending strong for the last month and change, with shares moving higher from its low of $14.63 to its recent high of $22 a share. During that uptrend, shares of SSNI have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SSNI within range of triggering a big breakout trade.

Traders should now look for long-biased trades in SSNI if it manages to break out above some near-term overhead resistance levels at $22 to $22.73 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 491,731 shares. If that breakout triggers soon, then SSNI will set up to re-test or possibly take out its next major overhead resistance levels at $23.90 to its gap down day high from August at $25.25 a share. Any high-volume move above $25.25 a share will then give SSNI a chance to re-fill some of that previous gap down zone that started near $32 a share.

Traders can look to buy SSNI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $19.01 a share, or near $18 a share. One can also buy SSNI off strength once it takes out that breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Jamba

My final breakout trading prospect is Jamba (JMBA), which operates as a retailer of blended-to-order fruit smoothies, squeezed-to-order juices, blended beverages and snacks. This stock has been hit hard by the bears during the last six months, with shares off by 22%.

If you look at the chart for Jamba, you'll notice that this stock has been trending sideways and consolidating over the last month and change, with shares moving between $10.37 on the downside and $11.72 on the upside. This sideways trading pattern is coming after shares of JMBA gapped down sharply in October from over $13.50 to that low of $10.37 a shares. Shares of JMBA are now starting to spike higher and move within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern.

Traders should now look for long-biased trades in JMBA if it manages to break out above some near-term overhead resistance levels at $11.44 to $11.72 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 240,782 shares. If that breakout triggers soon, then JMBA will set up to re-fill some of its previous gap down zone from October that started above $13.50 a share.

Traders can look to buy JMBA off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $10.43 to $10.37 a share. One could also buy JMBA off strength once it clears those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point.

To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Friday, November 15, 2013

Rieder: CBS must come clean on Benghazi blunder

It's a challenge for CBS News — and an opportunity.

The network has to thoroughly investigate what went so terribly wrong with the ill-fated 60 Minutes segment on the deadly attack on the U.S. mission in Benghazi, Libya.

And it has to be totally transparent about what it finds.

The network's initial response to the broadcast's problems hardly is cause for optimism. It played defense for nearly a week before conceding the obvious, that the report was fundamentally flawed. It still has a chance to do the right thing.

But that thing must be much, much more than the largely detail-free apology and correction by correspondent Lara Logan we have seen so far. CBS has acknowledged it made a big mistake by relying on security guard Dylan Davies, the "eyewitness" who had told his employer and the FBI that he had in fact been nowhere near the scene.

But it needs to determine and explain how it came to be that the broadcast ended up relying so heavily on such a slender reed to support such an explosive story. And it has to address a wide array of other questions that have been raised about the report.

Rem Rieder is a media columnist for USA TODAY.(Photo: USA TODAY)

Make no mistake: This is a big deal. 60 Minutes has long been a television jewel. It's a bastion of serious broadcast journalism, a commodity of which there is not necessarily a surfeit. CBS News Chairman Jeff Fager, who is also executive producer of 60 Minutes, told The New York Times that the Oct. 27 fiasco was "as big a mistake as there has been" in the program's 45-year history. (USA TODAY ran a story quoting extensively from the broadcast.)

And it had real-world consequences. The broadcast reignited the Republican effort to use the Sept. 11, 2012, episode, in which U.S. Ambassa! dor Christopher Stevens was killed, as a club to batter the Obama administration.

(Benghazi is one of a number of scandals or "scandals" the GOP has flogged in an effort to score points against President Obama — think Operation Fast and Furious, the IRS — but none has gained serious traction. The party could have saved its energy. Team Obama has given its foes an opportunity beyond their wildest dreams with the disastrous rollout of the Affordable Care Act.)

CBS says it has launched a "journalistic review" of the train wreck but has provided no details. When I asked 60 Minutes spokesman Kevin Tedesco to supply some, he replied via e-mail, "We decline to comment."

RIEDER: CBS, Obama pay price for stonewalling

When it does get around to commenting, CBS News needs to elucidate the book tie-in. Threshold Editions, a subsidiary of Simon & Schuster, published a book by Davies titled The Embassy House: The Explosive Eyewitness Account of the Libyan Embassy Siege by the Soldier Who Was There. The book was written under the pseudonym "Sergeant Morgan Jones," the name Davies also used on the broadcast.

Guess who owns Simon & Schuster? Yep, CBS Corp. After the 60 Minutes story self-destructed, Threshold announced that it was suspending publication of the book. Good idea.

But the question remains: How much of a role did corporate synergy play in propelling such a dubious witness into a starring role?

Also, how come the report never mentioned that Davies had written a book for a CBS subsidiary?

The CBS investigators, er, reviewers also will definitely want to check out an excellent piece by Nancy A. Youssef of McClatchy Newspapers, which pokes numerous holes in the 60 Minutes report.

For example, Youssef writes that Logan repeatedly refers to al-Qaeda as being solely responsible for the attack, and doesn't mention Ansar al Shariah, an Islamic extremist group that she says has long been suspected of being behind the bloodshed.

The story contin! ues: "It ! is an important distinction, experts on those groups said. Additionally, al Qaida's role, if any, in the attack has not been determined, and Logan's narration offered no source for her repeated assertion that it had been."

Credit also goes to the liberal group Media Matters, which from the get-go has done a fine job keeping the heat on the broadcast's manifold shortcomings.

When things go terribly wrong, the best response is to do everything you can to figure out why, in the hope that you can find guideposts for avoiding similar debacles in the future.

Confronted with the widespread fabrication and plagiarism of reporter Jayson Blair, The New York Times ordered up and published a mammoth and devastating reconstruction of the mess. Faced with a similar scandal involving correspondent Jack Kelley, USA TODAY brought in a trio of distinguished outside journalists to investigate.

Closer to home for CBS, when Dan Rather fronted a 60 MInutes II segment on President George W. Bush 's National Guard service that turned out to be based on questionable and quickly questioned documents, the network turned to a former attorney general no less, as well as the retired head of the Associated Press, to sort things out.

It's critical that the "journalistic review" said to be underway at CBS turns out to be a serious, unblinking assessment of what transpired, and that the findings are shared fully with America's news consumers. They deserve no less.

Thursday, November 14, 2013

Boeing’s Next-Gen Dreamliner to Debut This Week

787dreamlinerSources tell Reuters that Boeing‘s (BA) latest edition to its 787 Dreamliner family could make its first flight sometime next week. Boeing shares surged more than 2% on the news.

The 787-9 is 20 feet longer than the 787-8 Dreamliners currently in service and can travel farther without refueling. The new jet can accommodate 40 more passengers that current 787s. Manufacturing of the first 787-9 was completed in Washington in August, according to Boeing. Two more 787-9s will soon be finished.

United Airlines Accidentally Sells ‘Free’ Tickets
United Airlines Accidentally Sells ‘Free’ Tickets

Airlines that purchase the new jet will face a list price of $243.6 million per jet. The current Dreamliner has a list price of $206.8 million per plane.

Boeing is scheduled to deliver the first 787-9 to Air New Zealand around the middle of next year. An even longer version of the Dreamliner — the 787-10 — will arrive in 2018, though that jet won’t be able to travel as far without refueling.

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The entire Dreamliner fleet was grounded by worldwide aviation regulators earlier this year after a series of problems was linked to its lithium-ion batteries.

Boeing developed a containment system to prevent battery over-heating and fires, allowing the jets to return to the skies during the spring.

Wednesday, November 13, 2013

Stocks hit session highs on Yellen talk

SAN FRANCISCO (MarketWatch) -- U.S. stocks hit session highs Wednesday afternoon, shedding morning losses, as investors speculated that the upcoming testimony from Federal Reserve Vice Chair Janet Yellen would be pro-monetary stimulus. The Dow Jones Industrial Average (DJIA) was up 15 points at 15,765, recovering after a 78-point deficit. The Nasdaq Composite (COMP) was up 27 points, or 0.7%, to 3,946. The S&P 500 (SPX) added 7 points, or 0.4%, to 1,774, on track for a record close. Tom di Galoma, head of U.S. fixed-income rates sales at ED&F Man Capital Markets, said there was talk Yellen's testimony could be released Wednesday after the close. Yellen, whom President Obama has nominated to be the next Fed chief, is scheduled to testify on Thursday.

Tuesday, November 12, 2013

Friday Closing Bell: Markets Wobble, but Hold Opening Gains

Bull and Bear figuresSource: thinkstockAugust 23, 2013: U.S. markets opened higher this morning most likely due to a big jump in shares of Microsoft Corp. (NASDAQ: MSFT) on news the CEO Steven Ballmer will retire. The only economic data released today sent markets down sharply for a while. July new home sales were well off expectations and far below June sales. The rate on 10-year Treasury notes fell which perked up stocks again, but markets closed with only a modest gain.

European markets once again closed higher today, while Latin American and Asian markets closed mixed.

Monday's calendar includes the following data releases and events:

8:30 a.m. – Durable goods orders 10:30 a.m. – Dallas Fed manufacturing survey 11:30 a.m. – 3- and 6-month Treasury bill auctions

We also broke out the top Wall Street calls with analyst upgrades and downgrades. Here are the closing bell levels for Friday:

S&P500 1,663.45 (+6.49; +0.39%) DJIA 15,010.36 (+46.62; +0.31%) NASDAQ 3,657.79 (+19.09; +0.52%) 10YR TNOTE 2.818% (+0.59375) Gold $1,370.80 (+25.20; +1.83%) Euro/Dollar: 1.3381 (+0.0025; +0.19%)

Big earnings movers: Pandora Media Inc. (NYSE: P) is down 12.9% at $18.90 after a decent earnings reports was spoiled by a weak outlook<<LINK>>. Net 1 UEPS Technologies Inc. (NASDAQ: UEPS) is up 46.6% at $10.69 after beating estimates on EPS and revenues, raising its outlook for the third quarter, and posting a new 52-week high of $11.20. Aeropostale Inc. (NYSE: ARO) is down 20.2% at $8.76, following a new 52-week low of $8.66, after a big earnings miss.

Stocks on the move: Facebook Inc. (NASDAQ: FB) is up 5.2% at $40.63, a new 52-week high, on a positive note from analysts at J.P. Morgan. Dendreon Corp. (NASDAQ: DNDN) down 9.1% at $2.90 after posting a new 52-week low of $2.85.

Notable earnings reports currently on tap for next week: Qihu 360 Technology Co. Ltd. (NASDAQ: QIHU), Avago Technologies Ltd. (NASDAQ: AVGO), LDK Solar Co. Ltd. (NYSE: LDK), Tiffany & Co. (NYSE: TIF), Joy Global Inc. (NYSE: JOY), Campbell Soup Co. (NYSE: CPB), JA Solar Holdings Co. Ltd. (NASDAQ: JASO), Krispy Kreme Doughnuts Inc. (NYSE: KKD), and ReneSola Ltd. (NYSE: SOL).

In all, 65 stocks put up new 52-week highs today, while just 28 stocks posted new lows.

Monday, November 11, 2013

Hospice: An Hospitable Investment

Print FriendlyCompanies can become attractive value opportunities for a variety of reasons, such as a short-term drop in earnings or residence in an out-of-favor industry. In some instances, uncommon variables make a company difficult to value.

The latter is the case with Chemed Corp (NYSE: CHE).

Chemed operates two very disparate businesses. In addition to owning the iconic Roto-Rooter company, the largest provider of plumbing and drain cleaning services in North America, it also owns VITAS Innovative Hospice Care. VITAS is the largest provider in the US of palliative care services, otherwise known as hospice, with about 8 percent market share in the country, operating 51 programs in 18 states.

As America’s World War II generation passes away and the Baby Boom generation rapidly turns gray, hospice has become a growth industry. While industry data is fragmentary, in 2009 about 33.5 percent of Medicare beneficiaries who passed away died at home, according to a study published by lead author Joan Teno that appeared in the Journal of the American Medical Association earlier this year. Of those, 42 percent died in hospice care as compared to only about 20 percent in the year 2000.

Federal Medicare spending on hospice care has also grown at a compounded annual rate of 16 percent from 1999 to 2011, up from just $2.4 billion at the beginning of that period to $13.8 billion at the end. Over that same period, the number of hospice providers grew from 2,303 to 3,585.

Thanks to this rapid industry growth, VITAS now accounts for about three-quarters of Chemed’s $1.4 billion in revenues last year, with Roto-Rooter making up the remaining 25 percent. As VITAS has steadily accounted for more and more of Chemed’s sales, sales have averaged 6.3 percent growth over the past three years while new income has grown 6.7 percent and earnings per share are up 12.6 percent.

Despite that extremely attra! ctive growth and Chemed’s $1.3 billion market capitalization, the company receives surprisingly little analyst coverage, thanks to its uncommon business dichotomy.

As a result, it trades at a persistent discount to other health care companies, commanding a price-to-earnings (P/E)  ratio of just 16.6 times trailing 12-month earnings compared to an industry average 21.2. It also trades at just 2.9 times its book value (the industry average is 3.7) and a slight discount to trailing one-year sales.

Despite that discount, Chemed’s earnings are forecast to grow by 15 percent over the next five years, handily beating the S&P 500 forecast for 9.8 percent growth.

Much of that growth can be attributed to changing attitudes towards death.

A study conducted by the Pew Research Center five years ago found that about 81 percent of respondents said that religion is important to them, making the US a huge outlier in terms of developed nations. Countries with similar wealth on average saw only about half of respondents say that religion was important to them. And as measured by religious observance, America has been becoming increasingly devout over the past decade.

This increased religiosity has helped to soften attitudes towards death, making death at least a bit more palatable.

A growing number of Americans are also making end-of-life decisions earlier, creating advanced directives and living wills and making their care decisions known to family and medical providers early on. According to a poll conducted by the Associated Press in 2010, about a third of Americans reported having an advance directive in place and 70 percent said that they would prefer to die at home.

Those changing attitudes make it likely that Chemed and VITAS should be able to continue the division’s nearly 13 percent average annual growth in net income over the past decade, if not grow it organically. On top of that, given the extremely fragmented nature of the hospice in! dustry, t! here’s ample opportunity for acquisitions to drive additional growth.

Perhaps the best thing that could happen for investors, though, is a breakup of the two businesses. Despite the relatively strong growth in both the Roto-Rooter and VITAS divisions, the markets don’t give Chemed sufficient credit because of the divergent nature of the two divisions. A breakup would unlock huge value for shareholders, because each division could then be judged on its own merits.

Investors would be well compensated while they wait for the company’s value to be unlocked. Shares currently yield just 1.1 percent, but the dividend has been steadily growing for five years, rising from a total annual payout of $0.24 in 2008 to $0.68 cents last year and $0.76 this year. At a payout ratio of just under 15 percent, there’s ample room to maintain dividend increases along with earnings.

There is one significant caveat. Earlier this year, Medicare filed a lawsuit against Chemed, claiming that VITAS falsely billed the government for medical care. There has been no determination of liability yet so it’s impossible to know what the company’s financial exposure might be. However, the government is suing for treble damages, statutory penalties, legal costs and interest.

The government has been investigating hospices over the past few years, as a growing number of patients are opting for palliative end-of-life care rather than aggressive treatment. So far, 11 smaller hospices have paid $88 million to settle Medicare over-billing allegations.

The odds are that VITAS will pay to settle the allegations, following in the footsteps of most of its competitors in these situations. However, any settlement is likely to be at least a year off. Until then, the suit will hang over shares.

That said, any settlement won’t likely make a huge dent in earnings considering the small recoveries thus far. False billing claims are pretty tough to prove, particularly in the ca! se of hos! pice care.

For investors who can stand some volatility and afford to wait, Chemed is an attractive value play up to 80.

Sunday, November 10, 2013

Stocks near highs face Yellen, Cisco, shaky sentiment

SAN FRANCISCO (MarketWatch) — As concerns over an overheated stock market run high, investor attention this week will shift to the economy, the next Fed chief, and the outlook from tech bellwether Cisco Systems Inc.

The week's data releases are likely to be muddied by the government's October shutdown, making it even harder to figure out whether the economic recovery is solid enough for the Federal Reserve to back off its stimulus. Some earnings reports—notably Cisco (CSCO) , Wal-Mart Stores Inc. (WMT) , and a few other retailers—may help fill in the blanks.

Last week, the Dow Jones Industrial Average (DJIA)  finished up 0.9%, the S&P 500 Index (SPX)  gained 0.5%, while the Nasdaq Composite Index (COMP)  shed less than 0.1%.

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Long-term care insurance has gotten a bad rap. Plus, how fast is your online broker? Senior editor Jack Hough previews the latest issue of Barron's Magazine. Photo: Getty Images.

Stocks finished higher on the day Friday , including a record close for the Dow, after a report that the U.S. economy added more jobs than expected. Economic forecasters, however, are torn about the reliability of the October jobs report. Atlanta Fed President Lockhart said on Friday that some data will be less reliable through the end of the year.

Even so, earlier in the week, San Francisco Fed President John Williams told reporters that consumer confidence data will be a big factor going forward in the decision on when to start tapering some $85 billion a month in asset purchases. On Friday, consumer sentiment data hit its lowest level since 2011.

In the meantime, some investors are reacting to perceived signs of a frothy market. Outflows hit U.S. equity funds as stocks traded near record highs.

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"The market's due for a rest and that's what we're seeing," said Paul Nolte, managing director at Dearborn Partners. Nolte said he still expects a 3% to 5% pullback from recent highs.

Societe Generale is taking an even gloomier view. It's predicted a 15% correction for U.S. stocks, citing rising bond yields.

Currently, the Dow industrials and S&P 500 are 0.3% off their all-time highs, and the Nasdaq is off 1.2% from its latest 13-year high.

Third-quarter productivity and October capacity utilization data will be of particular interest to Robert Pavlik, chief market strategist at Banyan Partners.

"Hopefully those numbers show a little growth, if manufacturing is keeping pace," Pavlik said.

Thursday also brings the Senate confirmation hearing of Janet Yellen to head the Federal Reserve. Yellen is expected to continue the dovish Fed policies of current chairman Ben Bernanke. Treasury yields, which spiked at the end of the week, are particularly vulnerable to any signs she'll want to curtail the Fed's bond purchase program as soon as this year.

Most financial markets are open Monday, Veterans Day, though there are no government data releases.

Enlarge Image Janet Yellen takes the podium after being nominated to succeed Ben Bernanke as the new Fed chair.

Thursday, November 7, 2013

Top 5 Heal Care Stocks To Buy For 2014

Are you a first time investor?

A sound portfolio is the first step to help you grow your money over a period of time. There will be some time and effort that will be required to construct a good portfolio. Diversification of the portfolio should be one aspect that should remain at the forefront in its construction. Diversification will also help in the reduction of risk and that is something that first time investors would benefit from. Attaining this would require some efforts as well as a new thought process and this is something to aim for.

Diversification

Diversification is the process of spreading out the investment amounts across different areas so that there is a lesser chance of all of the investments behaving in a similar manner.  Diversification will ensure that there is a lesser chance of all the investments in the portfolio moving together. This reduces the extent of the changes in the portfolio and consequently reduces risk. 

Diversification is also a way to inject certain type of behaviour to the portfolio because using just one type of asset or investment would mean that if something goes wrong in that area there would be a significant impact on the overall portfolio and performance. As more and more investment options are introduced there is a tendency for some of them to behave differently which will reduce the extent of change in the portfolio. A very good example is for a first time investor like you to spread their money across fixed deposits, bonds, equities and have some liquid amount as cash. This is diversification as compared to a situation where you just have equities in the portfolio or just debt instruments like fixed deposits.

When all your money is in a single area like equities and the stock markets are weak then there will be a negative impact on your entire portfolio. On the other hand by having some money in fixed deposits and bonds there will be less volatility in the overall investments and at the same time there is also some regular income flow that is not dependent on just the performance of the stock market.

Example of a portfolio of a 45 year old individual spread out across different asset classes
 
Types of diversification

Top 5 Heal Care Stocks To Buy For 2014: Vanoil Energy Ltd. (VEL.V)

Vanoil Energy Ltd., an oil and gas company, engages in the identification, acquisition, exploration, and evaluation of oil and gas properties in Kenya and Rwanda. The company owns 100% interests in the 3A and 3B blocks that cover approximately 24,912 square kilometers in Kenya. It also owns oil and gas concessions covering approximately 1,631 square kilometers in the northwestern part of the Rwanda. Vanoil Energy Ltd. was founded in 2009 and is headquartered in Vancouver, Canada.

Top 5 Heal Care Stocks To Buy For 2014: First Security Group Inc.(FSGI)

First Security Group, Inc. operates as the holding company for FSGBank that provides banking and financial products and services to various communities in eastern and middle Tennessee and northern Georgia. The company offers various deposit services, such as checking, savings, and money market accounts, as well as certificates of deposit. It offers commercial loans, including loans to smaller business ventures, credit lines for working capital, short-term seasonal or inventory financing, and letters of credit; real estate?construction and development loans to residential and commercial contractors and developers; and consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans. The company also offers commercial mortgage loans to finance the purchase of real property; commercial leasing for new and used equipment, fixtures, and furnishings to owner-managed businesses; and leasing for forklifts, heavy equipment, and other machinery to owner-managed businesses primarily in the trucking and construction industries. It also provides trust and investment management, mortgage banking, financial planning, and electronic banking services, such as Internet banking, online bill payment, cash management, ACH originations, wire transfers, direct deposit, traveler?s checks, safe deposit boxes, United States savings bonds, and remote deposit capture, as well as equipment leasing. The company operates 38 full-service banking offices and 1 loan and lease production office. Its market areas include in Bradley, Hamilton, Jackson, Jefferson, Knox, Loudon, McMinn, Monroe, Putnam, and Union counties, Tennessee; and Catoosa and Whitfield counties, Georgia. First Security Group was founded in 1974 and is headquartered in Chattanooga, Tennessee.

Advisors' Opinion:
  • [By Roberto Pedone]

    First Security Group (FSGI) operates as the holding company for FSGBank, which provides banking products and services to various communities in Tennessee and Georgia. This stock closed up 6.5% to $2.29 in Tuesday's trading session.

    Tuesday's Range: $2.16-$2.30

    52-Week Range: $1.30-$7.45

    Tuesday's Volume: 80,000

    Three-Month Average Volume: 509,606

    From a technical perspective, FSGI ripped higher here right above some near-term support levels at $2.14 to $2.12 with lighter-than-average volume. This move is quickly pushing shares of FSGI within range of triggering a major breakout trade. That trade will hit if FSGI manages to take out some near-term overhead resistance levels at $2.38 to $2.52 and then once it clears its 200-day moving average at $2.80 with high volume.

    Traders should now look for long-biased trades in FSGI as long as it's trending above some key support levels at $2.14 to $2.12 and then once it sustains a move or close above those breakout levels with volume that hits near or above 509,606 shares. If that breakout triggers soon, then FSGI will set up to re-fill some of its previous gap down zone from June that started at $5.08.

  • [By Ning Jia]

    The case for First Security Group (FSGI) is interesting. It is bank holding company that is obscure, cheap and unloved. As the company completed the recapitalization earlier this year, I think the market has been under-appreciating its potential to return to growth and profitability as a result of the much-needed recapitalization.

Top 10 Growth Companies To Invest In Right Now: VirnetX Holding Corp(VHC)

VirnetX Holding Corporation engages in developing and commercializing software and technology solutions for securing real-time communications over the Internet. Its software and technology solutions, which include secure domain name registry and GABRIEL Connection Technology, facilitate secure communications and create a secure environment for real-time communication applications, such as instant messaging, voice over Internet protocol, smart phones, eReaders, and video conferencing. The company focuses on commercializing its technology to original equipment manufacturers within the IP-telephony, mobility, fixed-mobile convergence, and unified communications markets. VirnetX Holding Corporation was founded in 2005 and is headquartered in Scotts Valley, California.

Advisors' Opinion:
  • [By Evan Niu, CFA]

    What: Shares of VirnetX (NYSEMKT: VHC  ) have jumped today by as much as 12% after the company announced that it has identified an additional developing specification related to its 3GPP LTE, SAE project.

  • [By Anders Bylund]

    Apple's (NASDAQ: AAPL  ) extremely simple workaround for VirnetX's (NYSEMKT: VHC  ) networking patents reveal how easily the company's claims can be ignored. Add in a recent court victory by Cisco Systems (NASDAQ: CSCO  ) over many of the same VirnetX claims, and the cracks in the patent trolling strategy start to show.

  • [By EXPstocktrader]

    If you read my last article involving Apple (AAPL) you were able to deduce that Apple lost its court battle with VirnetX (VHC). Shortly thereafter, Apple said that it was ready to "remove" the VPN On Demand feature due to VirnetX law suit that it had recently lost. Surely, its customers must be up in arms about that statement.

Top 5 Heal Care Stocks To Buy For 2014: Daktronics Inc.(DAKT)

Daktronics, Inc., together with its subsidiaries, designs, manufactures, and sells various electronic display systems and related products, as well as provides related maintenance and professional services worldwide. The company offers scoring and timing products, such as indoor and outdoor scoreboards, digit displays, scoring and timing controllers, statistics software, and other related products; timing systems for sports events, primarily aquatics and track competitions; and audio systems integrated into a solution that include scoring, timing, message display, and/or video capability for sports venues, as well as related control systems. It also provides automated rigging and hoist products, which comprise of arena center-hung scoreboard/display systems for small and large sporting facilities; automated rigging for theatre applications, including high schools; and video display systems, such as displays to show various levels of video, graphics, and animation, as well as controllers to manage the operation of the display. In addition, the company provides architectural lighting and display products, which include freeform video elements; message display systems for commercial applications; digital billboards that offer digital display solutions for the outdoor advertising industry; Visiconn system, a primary software application for controlling content and playback loops for digital billboard applications; and digit and price displays consisting of outdoor time and temperature displays, as well as Fuelight digit displays designed for the petroleum industry. Further, it offers transportation products comprising various light emitting diodes-based displays for road management, parking, mass transit, and aviation applications; and rents its display equipment. The company sells its products through its direct sales force, as well as through resellers. Daktronics, Inc. was founded in 1968 and is based in Brookings, South Dakota.

Advisors' Opinion:
  • [By Dan Caplinger]

    On Wednesday, Daktronics (NASDAQ: DAKT  ) will release its latest quarterly results. But can the company that's famous for helping professional sports keep score fare well enough to make investors the ultimate winners?

  • [By John Udovich]

    On Tuesday, large cap�LCD glass maker�Corning Incorporated (NYSE: GLW) began surging some 20% in after hours trading after announcing that it will take over an existing joint venture (Samsung Corning Precision Materials) with Samsung���meaning it might be worth taking a closer look at some small cap peers like Universal Display Corporation (NASDAQ: OLED), Daktronics, Inc (NASDAQ: DAKT) and SGOCO Group Ltd (NASDAQ: SGOC) who also have a piece of the LCD glass or related flat panel display action. Specifically, the deal involves a series of transactions to�give Corning Incorporated full ownership of Samsung Corning Precision Materials Co., Ltd. (SCP), which manufactures LCD glass in Korea and it should be noted that Corning already relies on sales of LCD-TV glass for the bulk of its profit. In addition, Corning Incorporated���board of directors has authorized an additional $2 billion of share repurchases through Dec. 31, 2015, dependent upon the transaction closing. Wendell P. Weeks, the chairman, CEO and president of Corning Incorporated was quoted in the press release announcing the deal as saying:

Top 5 Heal Care Stocks To Buy For 2014: Premafin(PRAI.MI)

Premafin Finanziaria SpA, through its subsidiary, engages in the insurance business in Italy and internationally. Its products include: car insurance, such as civil liability and auto; non-life insurance, which comprise liability, injury, illness, transportation, and individual risks; and life insurance and financial products, such as pension funds and asset management. The company also undertakes promotion and development of real estate. Premafin Finanziaria SpA is headquartered in Rome, Italy.