Bes Stocks To Buy 2014, Best Stocks For 2014: 6/29/14

Saturday, July 5, 2014

Should New Residents Contribute Equally to Community Funds?

Q. A few days after I moved into my new apartment, a neighbor came around collecting from all the tenants in our small building for a retirement gift for the longtime janitor, who was apparently very popular. He said everyone was chipping in $200. I told him that I hadn't met the man and, as a new tenant, hadn't benefited from his service over the years, so I declined to contribute. Now the neighbor is telling everyone I'm a cheapskate. In fact, I'm quite generous to service workers, especially those who go the extra mile to be helpful. Who's right on this?

See Also -- QUIZ: How Much Should You Tip?

A. Your position makes sense and is ethically sound, and your neighbor was out of line in saying anything negative about any tenant's donation, whatever the amount. People have different means, and $200 isn't chicken feed. (Don't I recall an episode of Friends in which Ross faced this dilemma?) Your neighbor should also have contacted the previous tenant of your apartment—who did benefit from the janitor's services, perhaps for a lengthy period, and should have contributed to the retirement kitty.

That said, it would have been diplomatic of you to make a small contribution as a neighborly gesture; after all, even new tenants get some benefit from the tidiness of the building under the retiring janitor's watch.

A similar quandary is faced by new tenants who move in at year-end and are approached to make a contribution to the employees' holiday fund. An ideal solution is for them to make donations that are proportional to the amount of time they were residents of the building.

I'm pleased to hear that you are usually generous when you tip service employees, especially those with a genuine ethic of serving others. Many service workers are paid a small hourly wage and depend upon tips. Acknowledging their helpfulness throughout the year, and especially at year-end, is always appropriate and welcome.

Have a money-and-ethics question you'd like answered in this column? Write to editor in chief Knight Kiplinger at ethics@kiplinger.com.

Friday, July 4, 2014

Dow Average Tops 17,000 as Payrolls Rise Amid ECB Plans

The Dow Jones Industrial Average (INDU +0.56%) climbed above 17,000 for the first time Thursday as data showed employers added more workers than projected in June and the European Central Bank disclosed details of its stimulus plans.

Goldman Sachs Group Inc. and MetLife Inc. advanced at least 1.3%, pacing gains among banks and insurance companies.Paccar (PCAR +5.77%, news) Inc. added 2.4% amid speculation that the maker of Kenworth and Peterbilt trucks may receive takeover interest from Volkswagen AG. PetSmart (PETM +12.25%, news) Inc. jumped 12% after Jana Partners LLC disclosed a new activist stake. Lululemon Athletica Inc. gained 2.1% after a report that the yoga-wear company has explored a buyout by a private-equity firm.

The Dow gained 95.68 points, or 0.6 percent, to 17,071.92 at 1 p.m. in New York. The Standard & Poor’s 500 Index (SPX) rose 0.6 percent to a record 1,985.54.

Equities markets closed at 1 p.m. Thursday before the Independence Day holiday. The yield on 10-year Treasuries climbed two basis points to 2.65%.

“This is a pretty strong report,” said Jim Paulsen, chief investment strategist at San Francisco-based Wells Capital Management, in a phone interview. “This is stuff that is going to lead to upward revisions of second quarter growth rates and it starts off the third quarter in a real positive momentum place.”

Jobs Report

The addition of 288,000 jobs followed a 224,000 gain the prior month that was bigger than previously estimated, Labor Department figures showed Thursday in Washington. The median forecast in a Bloomberg survey of economists called for a 215,000 advance. The jobless rate is the lowest since September 2008. The number of long-term unemployed fell to 3.1 million, showing they’re having greater success finding work.

It took the Dow 227 days to cross the 17,000 mark after surpassing 16,000 for the first time on Nov. 18. Caterpillar Inc., the world’s largest maker of construction and mining equipment, Walt Disney Co., the biggest entertainment company, and computer-chip maker Intel Corp., led the advance, rising more than 20%.

Benchmark indexes are at record levels as stocks extended a rebound from a selloff earlier this year that started with biotechnology and small-cap stocks. The S&P 500 has rallied 9.1% since reaching a two-month low in April as central bank stimulus spread from Europe to Japan and the U.S.

Central Banks

Fed Chair Janet Yellen said last month that accommodative monetary policy, rising property and equity prices and the improving global economy should lead to above-trend growth. The Fed has kept its benchmark rate near zero since December 2008.

ECB President Mario Draghi reiterated Thursday that he’ll keep interest rates low as officials try to revive the region’s economy with a new round of emergency measures.

Draghi gave some details Thursday on the new targeted-loan program that includes lending to banks under the condition they lend the money on to households and companies. He estimated that banks could take up as much as 1 trillion euros ($1.36 trillion) in the two initial tenders and a series of quarterly auctions.

“I’m confident that banks will quickly understand that even though it’s complicated, it’s also quite attractive,” he said.

“All eyes should be focused not on the jobs number, but on what Mario Draghi says,” Chad Morganlander, a money manager at St. Louis-based Stifel, Nicolaus & Co., which oversees about $160 billion, said in a phone interview.

Low Volatility

The Chicago Board Options Exchange Volatility Index (VIX -3.97%) declined 3.5% to 10.44. The gauge, known as the VIX, is at its lowest level since February 2007.

Eight of 10 main industries in the S&P 500 advanced. Industrial and financial firms were the biggest gainers, rallying at least 0.6%.

Life insurers like Lincoln National Corp. and MetLife benefit from climbing bond yields, which allow them to invest clients’ premiums and maturing securities at higher interest rates. MetLife added 1.7% to $57.03 and Lincoln National increased 1.7% to $53.12. Goldman Sachs added 1.3% to $169.13 for the biggest advance in the Dow.

Paccar rose 2.4% to $61.60. Volkswagen spokeswoman Christine Ritz said by telephone that the largest European carmaker “clearly denies” an interest in bidding for the Bellevue, Washington-based company. Sanford C. Bernstein & Co. analyst Max Warburton said in a note that Wolfgang Bernhard, chief of the truck unit at Daimler AG, said at an event Wednesday with analysts that Volkswagen may bid for Paccar.

Takeover Talks

Lorillard Inc. climbed 6.4% to $65.04. The fourth-largest U.S. tobacco seller may be taken over by Reynolds American Inc. within weeks, CNBC reported, citing people it didn’t identify. Reynolds added 2.4% to $61.60.

PetSmart jumped 12% to $67.15. Jana, the $10 billion hedge-fund firm run by Barry Rosenstein and known for pushing corporate managements to make changes, acquired about 9.9% of PetSmart in stock and options, and “expects to have discussions” with management, the board and other investors, according to a regulatory filing.

Lululemon rose 2.1% to $42.29. Advisers to founder Chip Wilson have been talking to private-equity firms, including Leonard Green & Partners LP, about taking the company private, the Wall Street Journal reported, citing people familiar with the situation. The newspaper reported on June 22 that the Vancouver-based company is working with Goldman Sachs Group Inc. on options including shaking up the board and partnering with a buyout firm.

Cree Inc. added 4.6% to $52.64. The maker of energy-efficient lighting products was raised to outperform, the equivalent of a buy, from market perform, or hold, at Oppenheimer & Co.

Thursday, July 3, 2014

Trains Soften the Real Estate Blow

With China's gross domestic product (GDP) representing nearly 15 percent of the global economy, it is little surprise that markets rise and fall on how China is faring. For nearly two decades now China has been the growth engine of the emerging markets, to the point that the World Bank International Comparison Project forecast this past May that the Chinese economy could surpass the United States to become the world's largest. That's an honor that the US has held since it overtook the United Kingdom in 1872.

Despite the important role China plays in the world economy, trying to read the Chinese economic tea leaves is a tricky proposition. For one thing, when an economy grows that large its fortunes become tied to the rest of the world and they can rise and fall depending upon what's happening on the other side of the ocean. At the same time, just as we say "don't fight the Fed," here in the States, in China's case it is "don't fight the central committee." Whenever the Chinese economy seems to be faltering, the government will step in with support measures.

That's why I've been surprised that so many market watchers continue to predict a hard landing for China. Global markets have been rallying over the past few days largely due to the fact that, once again, those calling for a hard landing were wrong.

Most of the economic data coming out of China so far this year has been relatively weak, particularly when it comes to real estate. While June data hasn't been released yet, homes sales in the first five months of the year fell 10.2 percent year-over-year while construction starts were down 18.6 percent. According to data from the International Monetary Fund, real estate directly accounts for 12 percent of Chinese GDP and indirectly accounts for even more when you consider sales of home furnishings, appliances and other items.

But just as analysts the world over watch Chi! nese economic data, so does Beijing. The country's real estate slowdown was largely government engineered, as Beijing took steps to slow credit growth and limit purely speculative real estate development. And just as it can tighten, now it is loosening, pushing banks to ease mortgage terms and cut interest rates, generally loosening credit conditions and embarking on social housing projects of its own. At the same time, the Chinese government cut a number of taxes for small- and mid-sized businesses and launched a raft of infrastructure projects.

As usual, a bet on a hard Chinese landing is probably going to be a losing one – the government just won't let that happen. As I've often said, I would avoid Chinese real estate-related investments at this point, but infrastructure plays should continue to pay off thanks to their simulative effect.

I would pay particular attention to China's ambitious efforts to develop a high-speed train network across the country in order to be more economic development opportunities to the country's interior. China currently operates the world's longest high-speed rail network at more than 6,000 miles.

Last year the government spent about RMB650 billion on rail development, with the goal of investing at least RMB3.3 trillion and building 13,000 miles of new railroad by the end of 2015. It also plans to grant ownership and operating rates on some city and regional connections to local governments and private investors.

#Premarket Prep Technical Update - Crude Trading Lower In Volatile Session

Related USO Why Energy And Utility ETFs Are Crushing The Competition What History Tells Us About Markets And Middle East Crises

Crude futures are trading lower by $0.84 at $104.48 per barrel in Wednesday's session. It has breached the major support at $104.60 and is attempting to find support at its recent low of $104.32.

Posted-In: Futures Movers & Shakers Technicals Commodities Intraday Update Markets Trading Ideas General

Most Popular Chesapeake Energy Corporation Completes Spin-off of Its Oilfield Services Business Hunting The Next GoPro: Short Week Brings Up To 7 IPOs 3D Systems Shares Fall $5 Following Bank Of America Bearish Commentary GoPro Shares Continue Higher On CBOE Announcement UPDATE: MLV & Co. Downgrades MannKind On Fair Valuation Starwood Plunges; NY State May Launch Probe Of LNR Unit Related Articles (USO) #Premarket Prep Technical Update - Crude Trading Lower In Volatile Session Why Energy And Utility ETFs Are Crushing The Competition What History Tells Us About Markets And Middle East Crises Iraq Is Back - Is It Time To Panic? Energy ETFs Surge Into High-Demand Summer Months Transport ETFs Keep On Trucking Higher Around the Web, We're Loving... Abercrombie Stems Bleeding Sales in Key Brand

Wednesday, July 2, 2014

3 Stocks Under $10 in Breakout Territory

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Stocks Set to Soar on Bullish Earnings

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Rocket Stocks to Buy in July

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

ShoreTel

ShoreTel (SHOR), together with its subsidiaries, provides Internet protocol unified communications systems for enterprises in the U.S. and internationally. This stock closed up 2.3% to $6.67 in Tuesday's trading session.

Tuesday's Range: $6.46-$6.74

52-Week Range: $3.77-$9.81

Thursday's Volume: 555,000

Three-Month Average Volume: 506,002

From a technical perspective, SHOR jumped higher here right above some near-term support at $6.30 with above-average volume. This stock recently formed a triple bottom chart pattern at $6.25, $6.35 and $6.30. Following that bottom, shares of SHOR have started to rip higher and move within range of triggering a major breakout trade. That trade will hit if SHOR manages to take out some key near-term overhead resistance levels at $6.79 to its 50-day moving average of $6.93 with high volume.

Traders should now look for long-biased trades in SHOR as long as it's trending above some key near-term support levels at $6.30 to $6.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 506,002 shares. If that breakout materializes soon, then SHOR will set up to re-test or possibly take out its next major overhead resistance levels at $7.21 to its 200-day moving average of $7.68. Any high-volume move above those levels will then give SHOR a chance to tag $8 to $8.50.

Ceres

Ceres (CERE), an agricultural biotechnology company, develops and sells energy crops to produce renewable bioenergy feedstocks in North America. This stock closed up 3.5% to 69 cents per share in Tuesday's trading session.

Tuesday's Range: $0.66-$0.69

52-Week Range: $0.50-$3.64

Tuesday's Volume: 198,000

Three-Month Average Volume: 360,856

From a technical perspective, CERE jumped higher here right above its 50-day moving average of 63 cents per share with lighter-than-average volume. This stock recently formed a double bottom chart pattern right below its 50-day at 66 to 65 cents per share. Shares of CERE are now starting to trend higher off those support levels and move within range of triggering a major breakout trade. That trade will hit if CERE manages to take out Tuesday's intraday high of 69 cents per share to more key overhead resistance levels at 71 to 75 cents per share with high volume.

Traders should now look for long-biased trades in CERE as long as it's trending above its 50-day 63 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 360,856 shares. If that breakout gets underway soon, then CERE will set up to re-test or possibly take out its next major overhead resistance levels at 91 cents per share to $1.

Ballard Systems

Ballard Systems (BLDP) is engaged in the development and commercialization of proton exchange membrane fuel cells worldwide. This stock closed up 3.4% to $4.26 in Tuesday's trading session.

Tuesday's Range: $4.04-$4.47

52-Week Range: $1.25-$8.38

Tuesday's Volume: 6.62 million

Three-Month Average Volume: 4.77 million

From a technical perspective, BLDP spiked higher here right above some near-term support at $3.88 with strong upside volume flows. This spike higher on Tuesday is starting to push shares of BLDP within range of triggering a big breakout trade. That trade will hit if BLDP manages to take out Tuesday's intraday high of $4.47 to some more key near-term overhead resistance at $4.52 with high volume.

Traders should now look for long-biased trades in BLDP as long as it's trending above some near-term support at $3.88 or above its 50-day at $3.62 and then once it sustains a move or close above those breakout levels volume that hits near or above 4.77 million shares. If that breakout triggers soon, then BLDP will set up to re-test or possibly take out its next major overhead resistance levels at $5.17 to $5.40. Any high-volume move above those levels will then give BLDP a chance to tag $6.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Monday, June 30, 2014

Is Cisco The Best Turnaround Company You Are Looking For?

The networking company Cisco Systems (CSCO) is an interesting company to watch. After witnessing troublesome quarters for some time, the company finally made its way to a possible turnaround. Its efforts seem to be bearing fruit as the company reported a better than expected quarterly numbers which won investors' hearts. Its results beat the Street's expectations, sending its share price higher.

A decent quarter

Although revenue dropped 5.5% to $11.50 billion over last year, it easily beat the estimate of $11.36 billion. Earnings per share declined to $0.42 per share from $0.46 per share in the prior year. However, on an adjusted basis, earnings stood at $0.51 per share, much higher than the analysts' expectation of $0.48 per share.

But Cisco faces stiff competition from other players such as Juniper Networks (JNPR) which has been performing much better. In fact, Juniper Networks reported a 10% surge in its top line in the most recent quarter, clocking in at $1.17 billion. Also, its earnings jumped 22% to $0.22 per share, over the previous year's quarter.

Over the last one year, Juniper has provided better returns than Cisco. Juniper's stock price appreciated 29%, whereas Cisco's share price jumped by 2.5% only. However, Cisco's efforts such as acquisitions to strengthen its business have enabled it to do better. Hence, its stock price has gained 10% since the beginning of this year, whereas Juniper's price rose 9% during the same period.

Acquisition led growth

Cisco's growth is mainly driven by a host of acquisitions made in the year 2013. It acquired Composite Software in July 2013 and made another two acquisitions, Sourcefire and WHIPTAIL in October. Further, in December it bought a privately held company called Inseime Networks, a developer of application-centric infrastructure products in the data center. This acquisition is made to help Cisco in its new SDN strategy. These acquisitions together should help the network company expand its business and grow its revenue.

Moreover, Cisco has repurchased 90 million shares during the quarter for $2 billion. This helped the company in boosting its bottom line. Further, it has another $10.1 billion left in its share repurchase program which will again help earnings per share grow. Therefore, this company looks interesting to the investors because of share repurchase program.

Additionally, Cisco pays great dividends, which is a part of its capital return program for its shareholders. It paid a dividend of $0.19 in the last quarter and has an annual dividend yield of 3.1%. Hence, it is a great stock to own for the long term.

Final thoughts

Although Cisco Systems faces stiff competition from its peers such as Juniper Networks, it has provided some good reasons to believe in its future. Firstly, it posted a great quarter, which was beyond analysts' expectations. Further, it is racing ahead of peers, when performance over the last few months (year-to-date) is considered. This was possible because of its acquisition strategy which has expanded and strengthened its business. Furthermore, it's a great stock to be owned because of stock repurchases and dividends paid to the investors. Therefore, prudent investors should take note of this networking company.

Currently 0.00/512345

Rating: 0.0/5 (0 votes)

Subscribe via Email RSS Feeds

Subscribe RSS Comments Please leave your comment:
More GuruFocus Links

Latest Guru Picks	Value Strategies
Warren Buffett Portfolio	Ben Graham Net-Net
Real Time Picks	Buffett-Munger Screener
Aggregated Portfolio	Undervalued Predictable
ETFs, Options	Low P/S Companies
Insider Trends	10-Year Financials
52-Week Lows	Interactive Charts
Model Portfolios	DCF Calculator
RSS Feed	Monthly Newsletters
The All-In-One Screener	Portfolio Tracking Tool