Saturday, August 31, 2013

Best Penny Stocks To Buy For 2014

Shares of Sealed Air Corporation (SEE) hit a new 52-week high of $27.65 on Jul 12, surpassing its previous high of $27.27. The company has delivered a robust one-year return of about 84.4% and year-to-date return of 58.9%, outperforming the S&P 500.

The Elmwood Park, NJ-based specialty packaging service provider has long-term estimated earnings per share growth rate of 12.9%. Average volume of shares traded over the last three months is approximately 1913K.

What’s Driving Sealed Air Up?

Sealed Air reported first-quarter 2013 adjusted net earnings from continuing operations of 17 cents per share, up 6% from the year-ago earnings of 16 cents per share but a penny short of the Zacks Consensus Estimate.

Although earnings missed estimates, Sealed Air declared an improved outlook for full year 2013. The company expects adjusted earnings in the range of $1.10 to $1.20 per share on net sales of $7.7â€"$7.9 billion. Furthermore, adjusted EBITDA is expected in the range of $1.01â€"$1.03 billion.

Best Penny Stocks To Buy For 2014: National American University Holdings Inc.(NAUH)

National American University Holdings, Inc., through its subsidiary, Dlorah, Inc., engages in the ownership and operation of National American University that provides post-secondary education services primarily to working adults and other non-traditional students in the United States. It provides associate?s, bachelor?s, and master?s degrees programs in business-related disciplines, such as accounting, applied management, and business administration, as well as information technology; and healthcare-related disciplines, such as nursing and healthcare management. The company also offers diploma programs consisting of a series of courses focused on a particular area of study, for students who seek to enhance their skills and knowledge in the areas of healthcare coding, practical nursing, therapeutic massage, and veterinary assisting. National American University Holdings offers its courses through educational sites, as well as online. As of May 31, 2010, the company had enr olled approximately 3,565 students in online programs, 3,742 students on-campus, and 1,451 students in hybrid learning centers. In addition, it manages apartment units, as well as develops and sells multi family residential real estate in the Rapid City, South Dakota area. The company was founded in 1941 and is headquartered in Rapid City, South Dakota.

Best Penny Stocks To Buy For 2014: Orion Marine Group Inc(ORN)

Orion Marine Group, Inc. operates as a marine specialty contractor serving the heavy civil marine infrastructure market. The company provides a range of marine construction and specialty services on, over, and under the water along the Gulf Coast, the Atlantic Seaboard, the West Coast, Canada, the Caribbean Basin, and the Pacific Northwest. The company?s marine construction services include construction of marine transportation facilities, marine pipelines, bridges and causeways, and marine environmental structures. Its marine transportation facility construction projects comprise public port facilities for container ship loading and unloading; cruise ship port facilities; private terminals; recreational use marinas and docks; and other marine-based facilities. Orion Marine Group?s marine pipeline service projects consist of the installation and removal of underwater buried pipeline transmission lines; installation of pipeline intakes and outfalls for industrial facilities ; construction of pipeline outfalls for wastewater and industrial discharges; river crossing and directional drilling; and creation of hot taps and tie-ins. Its bridge and causeway projects include the construction, repair, and maintenance of bridges and causeways, as well as the development of fendering systems in marine environments; and marine environmental structure projects primarily comprise the installation of concrete mattresses to ensure erosion protection, and the installation of geotubes for wetlands and island creation. In addition, the company offers dredging services; specialty services, including salvage, demolition, surveying, towing, diving and underwater inspection, excavation, and repair; and survey services comprising surveying pipelines and performing hydrographic surveys. Its customers include federal, state, and municipal governments, as well as private commercial and industrial enterprises. The company was founded in 1994 and is headquartered in Houst on, Texas.

Best Penny Stocks To Buy For 2014: TranSwitch Corporation(TXCC)

Transwitch Corporation designs, develops, and supplies semiconductor and intellectual property solutions for voice, data, and video communications equipment. The company provides integrated multi-core network processor system-on-a-chip (SoC) and software solutions for fixed, 3G and 4G mobile, VoIP, and multimedia infrastructures. It offers converged network infrastructure products, including infrastructure VoIP processors comprising Entropia series of processors for wire-line and wireless carrier equipment; EoS/EoPDH mappers and framers for formats and data speeds in the access portion of the network; tributary switches that enable traffic to be switched or re-arranged; and carrier Ethernet solutions consisting of Ethernet controllers and switches, as well as circuit emulation and clock recovery devices. The company also provides FTTx protocol processors, such as mustang, a system-on-chip solution for EPON optical network unit equipment; COLT processor, a system-on-chip so lution for the optical line terminator equipment; and Diplomat-ONT product, an integrated SoC solution for GPON ONU applications, as well as access VoIP processors and access controllers. In addition, it offers broadband customer premises equipment, including multi-service communications processors comprising Atlanta processor, a multi-service SoC for customer premises equipment that supports toll-quality telephone voice, fax, and routing functionality; and HDMI, displayport, HDP, and Ethernet IP cores for consumer electronics, home network equipment, and industrial and automotive applications. The company serves public network systems OEMs, WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs, as well as government, university, and private laboratories. It sells its products through direct sales force, independent distributors, and sales representatives. The company was founded in 1988 and is headquartered in Shelton, Connecticut.

Advisors' Opinion:
  • [By Michael Brush]

    If you find yourself craving more high-definition video on your smartphone or tablet computer or if you've been checking out 3D televisions -- the next big trend -- you already know why TranSwitch (TXCC) stock should be a winner over the next few years.

    Once a techmania darling, trading at more than $500 a share, TranSwitch crashed and burned along with so many other Internet stocks. It has been all but left for dead since. Wall Street analysts are predicting the stock will actually have fallen to $2 a year from now, from recent levels of around $2.60, according to Thomson Reuters.

    What they're missing is that TranSwitch has revamped its chip offerings so they support high-definition video connections in TVs, PC and game monitors, smartphones, tablets and video cameras. This exposes the company to some big consumer trends. Another new product line supports gear that connects homes, offices and smartphones to the Internet.

    Those analysts and other investors don't put much faith in these new products. So why should you? Because the right kinds of insiders have been accumulating stock. Many of the new products are scheduled to hit the market over the next three months and generate meaningful sales by the fourth quarter. So now is the time to buy.

    Of course, we don't know for sure that TranSwitch's new products will catch on. But behind the scenes, they've been licensed by the likes of Intel (INTC), International Business Machines (IBM), Texas Instruments (TXN) and Analog Devices (ADI), Ted Chung, the TranSwitch vice president of global business development, tells me. That suggests TranSwitch may work its way into the Apple (AAPL) iGadget ecosystem, says Northland Capital Markets analyst Richard Shannon. That would be a game-changer for tiny TranSwitch, but the markets for its new products are so big that it probably can win even without such an advantage

Best Penny Stocks To Buy For 2014: First Financial Northwest Inc.(FFNW)

First Financial Northwest, Inc. operates as the holding company for First Savings Bank Northwest that provides community-based savings bank services in Washington. Its deposit products include noninterest bearing accounts, NOW accounts, money market deposit accounts, statement savings accounts, and certificates of deposit. The company?s loan products portfolio comprises one-to-four family residential loans, multifamily loans, commercial real estate loans, construction/land development loans, and business loans, as well as consumer loans, including home equity loans, personal lines of credit, second mortgage loans, and savings account loans. First Financial Northwest, Inc., through another subsidiary, First Financial Diversified, Inc., offers escrow services. The company primarily serves customers in the King, Pierce, Snohomish, and Kitsap counties of Washington through a full-service banking office in Renton, Washington. First Financial Northwest, Inc. was founded in 1923 and is based in Renton, Washington.

Best Penny Stocks To Buy For 2014: Life Partners Holdings Inc(LPHI)

Life Partners Holdings, Inc., through its subsidiary, Life Partners, Inc., operates in the secondary market for life insurance in the United States. It facilitates life settlement transactions by identifying, examining, and purchasing the policies as agent for the purchasers. The company?s financial transactions involve the purchase of life insurance policies at a discount to their face value for investment purposes. It serves institutional purchasers, which include investment funds designed to acquire and hold life settlements; and retail purchasers, such as high net worth individuals. The company was founded in 1971 and is based in Waco, Texas.

Advisors' Opinion:
  • [By Zacks]

    Life Partners Holdings, Inc. (LPHI) is engaged in the secondary market for life insurance. The company gained almost 27.5% last week to become the top-performing Zacks #1 Rank company. It was also a top performer in the week ended Apr 20. Over the past month, earnings estimates for the year ending February 2008 are up approximately 22.7%.

    Life Partners Holdings began this month by reached 52-week highs each day from May 2 through May 4. Last month, the company announced that it expects net income to surge 215% for fiscal 2007. This is attributed to an exceptional increase in net income beginning in the third quarter and continuing into the fourth quarter. For its fiscal fourth-quarter, earnings per share are expected at 22 cents, which would mark significant advances from both the year-ago performance and Wall Street expectations. The company plans to officially report its earnings later this month.

Best Penny Stocks To Buy For 2014: Integrated Silicon Solution Inc.(ISSI)

Integrated Silicon Solution, Inc., a fabless semiconductor company, designs and markets integrated circuits for digital consumer electronics, networking and telecommunications, mobile communications, automotive electronics, and industrial markets. Its primary products include low and medium density DRAM; and high speed and low power SRAM. The company?s low and medium density DRAM products are used in wireless local area networks (WLANs), base stations, networking switches and routers, fiber to the home (FTTH), DSL and cable modems, set top boxes, digital cameras, MP3, flat panel TVs, LCD TVs, HDTVs, video phones, Voice over Internet Protocol, printers, disk drives, tape drives, audio/video equipment, instrumentation, global positioning systems (GPS), telematics, infotainment, smart meters, and other applications. Its SRAM products are used in WLANs, cell phones, base stations, networking switches and routers, FTTH, DSL modems, LCD TVs, set-top boxes, GPS systems, instrumen tation, engine control systems, medical equipment, telematics, audio and video equipment, satellite radio, POS terminals, fax machines, copiers, tape drives, and other applications. Integrated Silicon Solution, Inc. also designs and markets application specific standard products, including high performance serial EEPROMs for use in TVs, networking systems, modems, telephone sets, security systems, video games, automobiles, and other consumer products; and SmartCards that have applications in transportation passes, payment cards, health care cards, and other cards that store secure data. The company markets and sells its products in Asia, the United States, and Europe through direct sales force, independent sales representatives, and distributors. Integrated Silicon Solution, Inc. was founded in 1988 and is headquartered in San Jose, California.

Advisors' Opinion:
  • [By Arohan]

    ISSI is another memory chip designer and marketer. It is a fabless semiconductor company so it outsources its manufacturing. The market currently values the company at $283 million ascribing a PE ratio of 4.75. The company has delivered an EPS growth of 39% in the last 5 years and its future outlook appears to be of modest growth as well, with a slight decline in the up coming year. The company has $88 million in cash and no debt and is well positioned to handle the slowdown in demand next year.

Astrology-Based Investment Ponzi Scheme Lands Man in Prison

Fortune Teller Looking Into Crystal Ball, Filled With Money. (Photo by Education Images/UIG via Getty Images)Education Images/UIG via Getty Images Divining market movement on moon motion might not work. Gurudeo "Buddy" Persaud of Orlando gave it a go and is now facing three years in federal prison. Last year, the Securities and Exchange Commission charged the ex-broker with defrauding investors through an astrology-based Ponzi scheme that bilked clients out of nearly $1 million. In a plea agreement, Persaud was sentenced to prison this week for mail fraud and ordered to pay $948,340.00 in restitution. According to the plea agreement and the SEC's complaint, Persaud was working as a registered representative at a Florida-based broker-dealer but separately formed White Elephant Trading Company LLC in 2007. Persaud pitched investors a "safe" and guaranteed return of between 6% and 18% by investing in stocks, futures, real estate markets and notes.

He apparently failed to mention to clients that his trading strategy was based on lunar cycles and the gravitational pull between the moon and the Earth. According to the SEC, Persaud believed that the gravitational pull between the moon and Earth affects human behavior, which in turn impacts the stock markets. For example, Persaud believed that when the moon is positioned in a manner that exerts a greater gravitational pull on human beings, they feel down and are therefore more inclined to sell securities in the markets.

Thursday, August 29, 2013

Best Penny Stocks For 2014

Yesterday's combination of horrible news, including the tragic explosion in Boston and troubling concerns on the economic front, left investors shaken. Yet this morning, the regular business of the market appeared to calm investors' fears, as some favorable news on the earnings front helped investors refocus on signs of improvement for the U.S. economy. By 10:45 a.m. EDT, the Dow Jones Industrials (DJINDICES: ^DJI  ) were up more than 65 points, albeit putting only a small dent in yesterday's 266-point drop. Broader markets saw similar gains of about half a percent.

The big winner among the 30 Dow stocks is Coca-Cola (NYSE: KO  ) , which has spiked by more than 5% after releasing highly encouraging earnings. Although revenue dropped by 1%, overall sales volume posted a 4% gain, and the company's adjusted earnings-per-share figure beat estimates by a penny despite some adverse calendar effects in comparison with last year's quarter. Moreover, investors responded favorably to Coke's decision to sell off some of its U.S. distribution assets to its team of independent bottlers. Although long-term trends may reassert themselves at some point, Coke's news shows that counting the soft-drink giant out isn't a smart move.

Best Penny Stocks For 2014: Central Federal Corporation(CFBK)

Central Federal Corporation operates as the holding company for CFBank that provides various financial services. It accepts various deposit products that include savings accounts, retail and business checking accounts, money market accounts, and certificates of deposit. The company?s loan portfolio comprises commercial, commercial real estate, and multi-family mortgage loans; single-family real estate loans; construction, land, and land development loans; and consumer loans, including home equity lines of credit, automobile loans, home improvement loans, and loans secured by deposits. It also provides online Internet banking, mobile banking, remote deposit, corporate cash management, and telephone banking services. Central Federal Corporation operates through four branch offices located in Summit, Columbiana, and Franklin Counties, Ohio. The company was formerly known as Grand Central Financial Corp. The company was founded in 1892 and is headquartered in Fairlawn, Ohio.< /p> Advisors' Opinion:

  • [By Curtis]

    Central Federal is the holding company for CFBank, an Ohio-based community-oriented financial institution offering financial services.

    Shares rallied in January after Central Federal said it had regained compliance with the Nasdaq's minimum bid price requirement. The stock was subject to delisting if it didn't close above $1 a share for a period of time. In February, Eloise Mackus, who had been serving as the company's interim CEO since May 2010, was officially appointed to the top executive position.

    Current Share Price: $1.39 (March 29)

    First Quarter Total Return: 172%

    Analyst Ratings: Central Federal isn't followed by research analysts. However, TheStreet Ratings has a "sell" recommendation on Central Federal, noting "disappointing return on equity and weak operating cash flow."

Best Penny Stocks For 2014: Integrated Silicon Solution Inc.(ISSI)

Integrated Silicon Solution, Inc., a fabless semiconductor company, designs and markets integrated circuits for digital consumer electronics, networking and telecommunications, mobile communications, automotive electronics, and industrial markets. Its primary products include low and medium density DRAM; and high speed and low power SRAM. The company?s low and medium density DRAM products are used in wireless local area networks (WLANs), base stations, networking switches and routers, fiber to the home (FTTH), DSL and cable modems, set top boxes, digital cameras, MP3, flat panel TVs, LCD TVs, HDTVs, video phones, Voice over Internet Protocol, printers, disk drives, tape drives, audio/video equipment, instrumentation, global positioning systems (GPS), telematics, infotainment, smart meters, and other applications. Its SRAM products are used in WLANs, cell phones, base stations, networking switches and routers, FTTH, DSL modems, LCD TVs, set-top boxes, GPS systems, instrumen tation, engine control systems, medical equipment, telematics, audio and video equipment, satellite radio, POS terminals, fax machines, copiers, tape drives, and other applications. Integrated Silicon Solution, Inc. also designs and markets application specific standard products, including high performance serial EEPROMs for use in TVs, networking systems, modems, telephone sets, security systems, video games, automobiles, and other consumer products; and SmartCards that have applications in transportation passes, payment cards, health care cards, and other cards that store secure data. The company markets and sells its products in Asia, the United States, and Europe through direct sales force, independent sales representatives, and distributors. Integrated Silicon Solution, Inc. was founded in 1988 and is headquartered in San Jose, California.

Advisors' Opinion:
  • [By Arohan]

    ISSI is another memory chip designer and marketer. It is a fabless semiconductor company so it outsources its manufacturing. The market currently values the company at $283 million ascribing a PE ratio of 4.75. The company has delivered an EPS growth of 39% in the last 5 years and its future outlook appears to be of modest growth as well, with a slight decline in the up coming year. The company has $88 million in cash and no debt and is well positioned to handle the slowdown in demand next year.

Best Penny Stocks For 2014: Teleflex Incorporated(TFX)

Teleflex Incorporated designs, manufactures, and distributes specialty medical devices for a range of procedures in critical care and surgery worldwide. It offers disposable medical products for critical care that includes medical devices used in critical care procedures for vascular access, respiratory care, anesthesia and airway management, treatment of urologic conditions, and other specialty procedures; and devices used in the treatment of patients with severe cardiac conditions, including intra aortic balloon pump systems and intra aortic balloon catheters and accessories. The company also provides surgical devices and instruments used in general and specialty surgical procedures, such as ligation and closure products, including appliers, clips, and sutures; access ports used in minimally invasive surgical procedures comprising robotic surgery; fluid management products for chest drainage; and hand-held instruments for general and specialty surgical procedures under t he Deknatel, Pleur-evac, Pilling, Taut, and Weck brand names. In addition, it offers cardiac care products, including diagnostic catheters and capital equipment; instruments and devices for other medical device manufacturers; and customized medical instruments, implants, and components to original equipment manufacturers. The company sells its medical products through its sales forces, and independent representatives and distributor networks. Teleflex Incorporated was founded in 1938 and is based in Limerick, Pennsylvania.

Best Penny Stocks For 2014: Ruth's Hospitality Group Inc.(RUTH)

Ruth?s Hospitality Group, Inc., together with its subsidiaries, operates restaurants in the United States and internationally. It operates the Ruth?s Chris Steak House, Mitchell?s Fish Market, Columbus Fish Market, Mitchell?s Steakhouse, and Cameron?s Steakhouse restaurant concepts in the full-service dining industry. The company?s restaurants cater to families, special occasion diners, and business clientele. As of December 27, 2009, it owned or operated 152 restaurants, including 64 company-owned Ruth?s Chris Steak House Company restaurants, 66 Ruth?s Chris Steak House franchise restaurants, 19 company-owned Mitchell?s Fish Markets, and 3 company-owned Mitchell?s Steakhouse restaurants. The company was formerly known as Ruth?s Chris Steak House, Inc. and changed its name to Ruth?s Hospitality Group, Inc. in February 2008. Ruth?s Hospitality Group, Inc. was founded in 1965 and is headquartered in Heathrow, Florida.

ConAgra Maintained at Neutral - Analyst Blog

On Jul 4, we reiterated our Neutral recommendation on the food products company, ConAgra Foods, Inc. (CAG), based on its top- and bottom-line growth. However, we are cautious about ConAgra's Commercial Foods segment, going forward.

Why the Reiteration?

ConAgra's earnings in fourth quarter of fiscal 2013 were 60 cents, increasing 17.6% year over year. Revenues for the quarter jumped 33.7% year over year to $4.6 billion. The results reflect positive contribution from its acquired assets and strong performance of its Consumer Foods segment.

The Ralcorp acquisition, undertaken in January this year, has been a significant contributor to the revenues. Once the integration is complete, Ralcorp is expected to drive the synergies further. The cost synergies are expected to reach $300 million by fiscal 2017.

The Consumer Foods segment is expected to grow further in the quarters ahead, driving ConAgra's business further. Moreover, ConAgra expects to use the proceeds from its new joint venture, Ardent Mills, to repay the debt incurred for the Ralcorp acquisition. The reduction in debt will improve the company's leverage ratios, in turn enhancing shareholders' value.

However, ConAgra's Commercial Foods segment is not performing as was expected, pulling the growth in revenues down. The segment is likely to remain in doldrums in the coming quarters due to the loss of a major customer in the potato business.

Also, the product launches in the segments call for higher advertising expenses, increasing the overall expenses for the company. Rising prices of raw materials used by ConAgra also temper our outlook on the stock.

Other Stocks to Consider

ConAgra currently carries a Zacks Rank #3 (Hold). Other stocks worth a look in the industry are B&G Foods Inc. (BGS) and Flowers Foods, Inc. (FLO), both carrying a Zacks Rank #1 (Strong Buy). Another company, Campbell Soup Company (CPB) carrying a Zacks Rank #2 (Buy), is worth a look.

Nabors Anticipates Low 2Q Income - Analyst Blog

Land drilling contractor Nabors Industries Ltd. (NBR), anticipates that its operating results for the second quarter of 2013 will fail to meet expectations.

According to Nabors, unsatisfactory performance from its 'Rig Services' and 'Completion and Production Services' units will lead to this lower-than-expected return. Decline in sales of capital tools along with decreased rig services and rental activities impair Nabors' Rig Services segment.

On the other hand, the Completion and Production Services unit was affected by a tough competitive environment and severe weather conditions. The company projects its operating income for second-quarter 2013 to be between $88.0 million to $91.0 million. However, Nabors has significantly lowered its gross debt by roughly $300.0 million in this quarter.

Nabors believes that the results will improve from the later quarters. The company is expected to release its second-quarter results after the closing bell on 23 Jul, 2013. The Zacks Consensus Estimate for earnings per share for the quarter stands at 15 cents.

Barbados-based Nabors' high natural gas exposure raises its sensitivity to gas price fluctuations. The company remains particularly exposed to this situation since its North American business is heavily biased to gas drilling.

Moreover, an imbalance in the demand-supply of rigs in the U.S. land drilling market presents considerable risk for the company. Additionally, the challenging near-to-intermediate term outlook for Nabors' international business will likely hamper its profitability.

Nabors currently retains a Zacks Rank #4 (Sell), implying that it is expected to underperform the broader U.S. equity market over the next 1 to 3 months.

However, three firms in the energy sector with a favorable Zacks Rank are InterOil Corporation (IOC), PetroQuest Energy Inc. (PQ) and Ferrellgas Partners LP (FGP). All the stocks currently retain a Zacks Rank #1 (Strong Buy).

Wednesday, August 28, 2013

Could A U.S. Hit on Syria Propel Crude to $150?

The hour of reckoning that will bring with it a military confrontation between the U.S. and Syria's Assad regime -- and even more dauntingly, potentially pitting American and European forces against Russia's military -- may be close at hand.

You're of course well aware of the civil war that has raged in Syria for nigh onto two years, resulting in more than 100,000 deaths in the country and creating millions of refugees in neighboring Jordan, Turkey, and Lebanon, among other spots. And, clearly, it was the alleged unleashing of chemical weapons by Assad's minions east of Damascus that may have broken the camel's back. If so, it would be by crossing a red line that President Obama had established a year ago this month against the use of those hideous weapons.

Crude scrambles northward
We can point to a host of offshoots from Syria's conflagration and its attendant human tragedies. As investors, we needn't have a wise elf tap us on the shoulder and point out that crude prices have moved steadily upward as concern has mounted about a U.S. military involvement in the country's tragedy. Indeed, both Brent crude -- typically traded in Europe -- and West Texas Intermediate were catapulted to higher ground in early trading Wednesday.

We also don't need that same cuddly elf for awareness that energy has been steadier of late than most other sectors. While the ultimate magnitude of crude's rise will depend upon a host of factors, including the intensity and duration of any U.S. involvement in Syria, it's also obvious that the oil price rise has been affected by events in Egypt as well.

While neither Syria nor Egypt is a major crude producer, both represent the importance of what those in real estate refer to as location, location, location. Egypt controls the Suez Canal, through which something less than 10% of crude traded in commerce passes daily. That may not sound like much, but remove it from total global supplies, and in a world with a close supply-demand balance, watch Brent and WTI scurry still higher.

Bowing out of Egypt
It's also noteworthy that Egypt shares a western border with Libya, which is a significant producer, but where chaos and contretemps also reign. Is it any wonder, then, that Chevron (NYSE: CVX  ) announced on Tuesday that it will unload its Egyptian downstream operations, including 66 service stations and a couple of oil depots, to Total (NYSE: TOT  ) ? The French company is also buying the retail assets in the land of the Sphinx from Royal Dutch Shell (NYSE: RDS-B  ) . Perhaps it knows something of which the rest of us are unaware.

Syria's location is no less consequential. It borders on majority-Shiite Iraq, which has itself been descending steadily in uninterrupted internecine attacks. And with the Syrian majority Sunni population, Iraq's Prime Minister Nouri al-Maliki is more than a little interested in perpetuating a maintenance of the Alawite branch of Shiite Islam embodied by Syrian President Bashar al-Assad.

Shiite Iran also shares that interest, and will do all it can to back the Assad regime. Can you say Strait of Hormuz? The rogue country already has its Hezbollah proxy making mischief in Syria.

A catastrophic confrontation with Russia
Then there's Russia. On Syria's Mediterranean coast (not far from where four U.S. destroyers are now prowling) sits the city of Tartus, which, among other things, includes a Russian naval base. Putin and his pals have already warned Washington that a U.S. attack on Syria would be "catastrophic." At this juncture, we can only wonder whether fisticuffs between the U.S. and its traditional rival could become serious enough to endanger ExxonMobil's (NYSE: XOM  ) sparkling new and wide-ranging partnership with Russian oil giant Rosneft.

Foolish bottom line
As energy investors we can safely proclaim a couple of truisms emanating from Syria. First, crude prices are unlikely to retreat precipitously, barring a major turnaround by the parties involved. And second, both refiners and all those who tend to pump gasoline into their vehicles are certain to be affected by crude lingering at even relatively high levels?

It seems clear that the first item should have Fools redoubling their attention to exploration and production companies, which will constitute the boats that will all be levitated by the rising tide of crude prices. For my money, I'm attracted to EOG Resources, an especially oily domestic producer with the leading position in the prolific Eagle Ford play, among others.

I'd also point out that Chesapeake (NYSE: CHK  ) is a major player in the Eagle Ford, and still is beset by something of an Aubrey McClendon discount. Finally, I wouldn't turn up my nose at Chevron, which, unlike many of its peers, isn't active in Iraq, but operates in a host of promising and relatively safe areas worldwide.

With the energy sector definitely firming up as events spiral in the Middle East and North Africa, you need to know all you can about perhaps the most compelling company in the group. Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 2.19 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock... and join Buffett in his quest for a veritable LANDSLIDE of profits!

Best Stocks To Buy For 2014

We think the recovery trends in housing are strong, and that the recent sharp increases in mortgage rates won't derail it. For exposure to this area, we are buying one of the leading home improvement retailers, suggests Genia Turanova of Leeb Income Performance.

While this is not the only company that stands to benefit from the ongoing rebound in both the prices and sales of new and existing homes, we chose Lowe's Companies (LOW), due to its still-attractive valuation.

The general case for home-improvement stores includes the rising number of home buyers and sellers who tend to engage in renovation and home improvement projects, in addition to purchasers of new homes, who also tend to add home décor, window treatments, and furnishings.

Lowe's in particular has been undergoing a turnaround, which means that its stock is still cheaper than that of its larger rival, Home Depot.

Best Stocks To Buy For 2014: Liang Huat Aluminium Ltd (C4P.SI)

Liang Huat Aluminium Limited designs, fabricates, manufactures, and sells of aluminum and other metal parts and components. The company provides building façade and interior wall systems, such as curtain walling systems, cladding systems, aluminum grilles, doors and windows, and other aluminium engineering and industrial products. It also offers design and consultancy services. In addition, the company designs, manufactures, and markets vehicle traction equipment. It offers its products and services in Hong Kong, China, Vietnam, Thailand, Malaysia, and India. The company was founded in 1978 and is based in Singapore.

Best Stocks To Buy For 2014: E-House(China)

E-House (China) Holdings Limited, through its subsidiaries, operates as a real estate services company in China. It provides primary real estate agency services, secondary real estate brokerage services, real estate information and consulting services, real estate advertising services, real estate online services, and real estate investment fund management services. The company offers primary real estate agency services to real estate developers of residential properties. Its secondary real estate brokerage services include offering advisory services on choices of properties; accompanying potential buyers on house viewing trips; drafting purchase contracts; negotiating price and other terms; and providing preliminary proof of title, as well as coordinating with the notary, the bank, and the title transfer agency. The company also provides market information to buyers and sellers based on its research, as well as listing and brokerage services comprising sales and rentals. Its real estate consulting services include land acquisition consulting and land development consulting. The company?s real estate information services comprise the sale of online subscriptions to its proprietary CRIC system to support its primary and secondary real estate agency services. Its real estate advertising services comprise advertising design and sales in print and other media. The company?s real estate online services include real estate news, information, property data, and access to online communities to real estate consumers and participants through local Web sites. Its real estate investment fund management activities consist of investments in China?s real estate sector. E-House (China) Holdings Limited was founded in 2000 and is headquartered in Shanghai, the People?s Republic of China.

Best Stocks To Buy For 2014: Bank of America Corporation(BAC)

Bank of America Corporation, a financial holding company, provides banking and nonbanking financial services and products to individuals, small- and middle-market businesses, large corporations, and governments in the United States and internationally. The company?s Deposits segment generates savings accounts, money market savings accounts, certificate of deposits, and checking accounts; and Global Card Services segment provides the U.S. consumer and business card, consumer lending, international card and debit card services. Its Home Loans & Insurance segment offers consumer real estate products and services, including mortgage loans, reverse mortgages, home equity lines of credit, and home equity loans. It also provides property, disability, and credit insurance. The company?s Global Commercial Banking segment offers lending products, including commercial loans and commitment facilities, real estate lending, leasing, trade finance, short-term credit, asset-based lending, and indirect consumer loans; and capital management and treasury solutions, such as treasury management, foreign exchange, and short-term investing options. Its Global Banking & Markets segment provides financial products, advisory services, settlement, and custody services; debt and equity underwriting and distribution, merger-related advisory services, and risk management products; and integrated working capital management and treasury solutions. The company?s Global Wealth & Investment Management segment offers investment and brokerage services, estate management, financial planning services, fiduciary management, credit and banking expertise, and asset management products. Bank of America Corporation serves customers through a network of approximately 5,900 banking centers and 18,000 automated teller machines. It was formerly known as NationsBank Corporation and changed its name on October 1, 1998. Bank of America Corporation was founded in 1874 and is based in Charlott e, North Carolina.

Advisors' Opinion:
  • [By Jon C. Ogg]

    Bank of America Corp. (NYSE: BAC) was the best performer of all 30 DJIA components in 2012. With gains of over 100%, the stock is now overvalued according to Wall St. analysts. Meredith Whitney may have recently upgraded Bank of America, but the year-end consensus price target of $10.60 was implying a negative return of almost 9%. There is at least something positive to say here, and that is that analysts are ratcheting their targets slightly higher already. Thomson Reuters already has lifted its consensus mean target to $11.13. Bank of America only yields 0.3% because it has not been allowed to raise its dividend. What if that changes in 2013?

  • [By Ben Levisohn]

    Four years after purchasing Merrill Lynch, Bank of America (BAC) said it will end investment bank's days as a separate legal entity. Bloomberg has the details:Bank of America Corp., the second-biggest U.S. lender, plans to merge its Merrill Lynch subsidiary into the parent company to reduce complexity and costs.

    The move could happen as early as the fourth quarter and means Charlotte, North Carolina-based Bank of America assumes all the investment bank’s obligations and debt, Merrill Lynch said in an Aug. 2 filing. Dissolving the legal entity also ends Merrill Lynch’s need to file separate regulatory disclosures.

    Shares of Bank of America have gained 1% to $14.47 today, while JPMorgan Chase (JPM)  has risen 0.7% to $53.66, Citigroup (C) has ticked up 0.3% to $51.01 and Wells Fargo (WFC) is up 0.3% to $43.13. The Financial Select Sector SPDR ETF (XLF) has gained 0.5% to $20.16.

  • [By Philip van Doorn]

    Shares of Bank of America (BAC) closed at $9.49 on Tuesday, returning 71% year-to-date, following an epic 58% decline during 2011. Despite that remarkable run, the shares trade for just 0.7 times the company's Dec. 30 tangible book value of $12.95, and for a relatively low nine times the consensus 2013 EPS estimate of $1.06. KBW analyst Jefferson Harralson rates Bank of America "Market Perform," with a price target of $9.00, and estimates the company will report first-quarter EPS of six cents, followed by full-year earnings of 65 cents, and 2013 EPS of $1.20.

  • [By John Grgurich]

    To any investors following the financial sector in 2012, it will come perhaps as no surprise that B of A is the year's top financials performer: moving from $5.81 per share to its year high of $11.61, for a whopping percentage gain of 100.17%. At the height of the financial crisis, in February 2009, B of A's stock traded for as low as $3.95.  

Tuesday, August 27, 2013

AES Corp. Stays Neutral - Analyst Blog

On Jul 11, 2013, we maintain our long-term recommendation on The AES Corp. (AES) − a power company engaged in electricity generation and distribution businesses − at Neutral. The company currently retains a Zacks Rank #2 (Buy).

Why the Reiteration?

The company's presence across 5 continents in 25 countries represents a highly-diversified earnings base. Geographic disparity in its target markets has resulted in a portfolio that is well-positioned for capitalizing on regional differences in power prices and weather-driven demand. This insulates the company from specific risks in any single region or country.

Again, AES Corp.'s large presence in the developing markets of Asia and Latin America puts it in a profitable position compared to its North America-focused peers. Steady economic growth and power demand in the emerging markets offset to a great extent the erosion in profitability in North America. The company is investing extensively for capacity expansion in the power hungry regions of Latin America and Asia.

The company's expense reduction program, aimed at curtailing general and administrative (G&A) costs, is expected to lead to bottom-line growth. AES Corp. has already achieved 62% of its three-year target in the first year. During the first quarter, the company reduced G&A costs by $26 million and remains on track to meet $145 million in annual cost reductions in 2014.

However, AES Corp.'s focus on long-term supply contracts exposes the company to commodity price risk. The company would be unable to pass on any escalation in prices of coal and natural gas to its customers.

Again, the company was a non-dividend paying stock since 1993 and only recently (Oct 2012) initiated the payment of dividends to its common shareholders. The intended annual payout of 16 cents comes with a yield of only 1.27%, in sharp contrast to its peers (utilities and energy merchants), which have a high industry average dividend yield (Zacks industry averag! e: 3.5%). This makes it a weak investment driver.

Other Stocks to Consider

There are other companies in the sector that appear more promising. These include Zacks Ranked #1 (Strong Buy) Companhia Paranaense de Energia (ELP) and Integrys Energy Group, Inc. (TEG), and Zacks Ranked #2 (Buy) Calpine Corp. (CPN).

Monday, August 26, 2013

Zeke Ashton's Top Second Quarter Portfolio Increases

Over the duration of the second quarter, Zeke Ashton made seven increases to his positions in his portfolio. Ashton reported his largest increases in the following five companies. As of the second quarter Ashton holds on to 30 stocks valued at $90 million.



Bravo Brio Restaurant Group (BBRG)

During the second quarter Ashton increased his position in Bravo Brio by 540%. Ashton purchased 108,000 shares at a second quarter price range of $15.37 to $19.01, with an estimated average price range of $17.28. Since then the price per share has dropped approximately -8.7%.

Ashton now holds on to 128,000 shares, representing 0.65% of the company's shares outstanding and 2.5% of his total portfolio.

Ashton's holding history as of the second quarter:

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The Company is the owner and operator of two fast growing and Italian restaurant brands: BRAVO! Cucina Italiana and BRIO Tuscan Grille.

Bravo Brio's historical revenue and net income:

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The Peter Lynch Chart suggests that the company is currently overvalued:

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Bravo Brio has a market cap of $310.1 million. Its shares are currently trading around $15.78 with a P/E ratio of 21.30, a P/S ratio of 0.80 and a P/B ratio of 2.80.

Skullcandy (SKUL)

During the second quarter Ashton increased his position in Skullcandy by 127.93%. The guru purchased a total of 255,851 shares in the second quarter price range of $4.87 to $6.00, with an estimated average price of $5.41. The price per share has increased approximately 5.7%.

Ashton now holds on to 455,851 shares of Skullcandy, representing 1.65% of the company's! shares outstanding and 2.8% of his total portfolio.

Ashton's holding history as of the second quarter:

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The Company is an audio brand that reflects the collision of the music, fashion and action sports lifestyles.

Skullcandy's historical revenue and net income:

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The Peter Lynch Chart suggests that the company is currently undervalued:

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Skullcandy has a market cap of $158.8 million. Its shares are currently trading at around $5.72 with a P/E ratio of 15.50, a P/S ratio of 0.60 and a P/B ratio of 1.20.

Tetra Technologies (TTI)

During the second quarter Ashton upped his stake in Tetra Technologies by 91.82%. The guru purchased 71,800 shares in the second quarter price range of $8.29 to $11.21, with an estimated average price of $9.74. Since his buy the price per share has increased approximately 20.1%.

Ashton held on to 150,000 shares of Tetra as of the second quarter. His position represents 0.19% of the company's shares outstanding and 1.7% of his total portfolio.

Ashton's holding history as of the second quarter:

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It is an oil and gas Services Company focused on completion fluids and associated products and services, production testing, wellhead compression, and selected offshore services including well plugging and abandonment, decommissioning and diving.

Tetra Technologies' historical revenue and net income:

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The Peter Lynch Chart suggests that Tetra Technologies is currently overvalued:

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Tetra Technologies currently has a market cap of $921.1 million. Its shares are currently trading at around $11.70 with a P/E ratio of 431.10, a P/S ratio of 1.00 and a P/B ratio of 1.60. The company had an annual average earnings growth of 2.8% over the past ten years.

Apple (AAPL)

During the second quarter Ashton increased his position in Apple by 74.36%. The guru purchased a total of 7,250 shares in the second quarter price range of $390.53 to $463.84 with an estimated average price of $430.74. Since then the price per share has increased approximately 16.3%.

Ashton now holds on to 17,000 shares of Apple representing 7.8% of his total portfolio.

Ashton's holding history as of the second quarter:

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The Company designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players and sell a variety of related software, services, peripherals, and networking solutions.

Apple's historical revenue and net income:

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The Peter Lynch Chart suggests that the company is currently undervalued:

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Apple has a market cap of $455.18 billion. Its shares are currently trading at around $501.02 with a P/E ratio of 12.60, a P/S ratio of 2.30 and a P/B ratio of 3.90. The company had an annual average earnings growth of 82.7% over the past ten years.

GuruFocus rated Apple the business predictability rank of 4.5-star.

Brookfield Asset Management (BAM)

Ashton's fifth largest increase of the quarter came from Brookfield Asset Management where he upped his stake by 33.33%. The guru purchased 15,000 shares in the price range of $34.31 to $39.12. Since then the ! price per! share has dropped about -4.2% from the quarterly estimated average price of $36.58 per share.

Ashton holds on to 60,000 shares of Brookfield, representing 0.01% of the company's shares outstanding and 2.4% of his total portfolio.

Ashton's holding history as of the second quarter:

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Brookfield Asset Management is a global alternative asset management company. The company organizes its business into a number of operating platforms that are responsible for managing the assets.

Brookfield's historical revenue and net income:

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The Peter Lynch Chart suggests that the company is currently overvalued:

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Brookfield Asset Management has a market cap of $21.9 billion. Its shares are currently trading at around $35.05 with a P/E ratio of 17.40, a P/S ratio of 1.20 and a P/B ratio of 1.30.

Check out Zeke Ashton's second quarter portfolio here.

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Sunday, August 25, 2013

Coca-Cola Is Sweet on Aspartame

If you have to run ads defending your ingredients to stave off declining sales, maybe it's time to rethink your production.

Coca-Cola (NYSE: KO  )  launched its first ads today defending the use of the artificial sweetener aspartame, arguing that not only is it safe to consume, but it can be healthier for you, too. With sales of soft drinks losing their pop, the beverage giant wants you to know you don't have to fear drinking its soda.

Aspartame, known more commonly by the brand name NutraSweet, is a controversial ingredient that's witnessing a large and growing resistance to its presence in the food chain despite the FDA's having signed off on its safety. Monsanto  (NYSE: MON  ) owned the brand at one time but sold it to J.W. Childs in 2000. Even so, the sweetener is made with genetically modified bacteria -- E. coli, to be exact -- from the chemicals giant, and today the sweetener is found in more than 5,000 consumer foods and beverages worldwide. Sucralose, another widely used artificial sweetener, goes by its brand name Splenda.

Whether the drop in sales is a result of the presence of aspartame remains cloudy, but Beverage Digest says diet-soda makers -- where the sweetener is prevalent -- are seeing sales in the U.S. fall at a faster clip than regular sodas. Even though classic Coke and Diet Coke remain the two top-selling sodas in the country, Coca-Cola witnessed a 4% drop in North American sales volumes for its fizzy drinks last quarter. Rival PepsiCo (NYSE: PEP  ) reported that beverage volumes in its Americas division fell 3.5% despite the contribution of a 3% price increase.

It's not just carbonated drinks weighing the toll aspartame exacts. The dairy industry is also soured by the prospect of having to label aspartame-flavored milk products such as labeling chocolate milk as "artificially sweetened" because of the negative connotations it has. With per-capita milk consumption down 23% since 1975 and whole milk sales off 58%, anything that might cause a more health-conscious consumer to avoid drinking their beverage is a cause for concern.

And it's pitting dairy producers against soda makers. The industry's biggest dairy company, Dean Foods (NYSE: DF  ) , says that even though about half the sugar in flavored milk is from naturally occurring lactose, all the sugar in soda is added sugar.

Which is probably part of the reason Coke feels the need to defend aspartame from attacks. Not that it's not working behind the scenes to try natural flavors as well. A new stevia-flavored drink is being tested in Argentina to see if it performs well enough to expand into other markets, while SodaStream (NASDAQ: SODA  ) introduced a line of stevia-flavored drinks for its make-it-yourself soda machine last year.

Even in the face of a growing obesity problem, consumers are more health-conscious these days and are reading labels more frequently. Thus, spending money to defend your production process isn't such a sweet deal for Coke investors, and it represents money that could be better spent on developing natural flavorings that aren't lab-made and genetically modified.

For more wholesome fare, check this out. It's hard to believe that a grocery store could book investors more than 30 times their initial investment, but that's just what Whole Foods has done for those who saw the organic trend coming some 20 years ago. However, it may not be too late to participate in the long-term growth of this organic-foods powerhouse. In this premium report on the company, we walk through the key must-know items for every Whole Foods investor, including the main opportunities and threats facing the company. So make sure to claim your copy today by clicking here.