Sunday, June 30, 2013

10 Best Prefered Stocks To Watch For 2014

When natural gas prices dipped to multi-year lows in 2012 the future of coal appeared to be in doubt. Although it has remained the nation's top fuel source, it was being squeezed out of the grid at an increasing rate -- falling from 49% in 2007 to 42% in 2011. That change and flooding in Australian mines pushed exports from 5% of production to 10% of production. Environmental groups have cheered the move (even though exported coal is simply burned elsewhere on the globe), but it didn't last long. ��

The Sierra Club and the Natural Resources Defense Council have a new reason to despise coal. The two environmental groups became infuriated after an audit revealed that the Bureau of Land Management was shorted by coal companies during land lease auctions. The amount may surprise you. Besides, coal still has an important role to play in American energy. Fool.com contributor Maxx Chatsko explains the folly of this complaint and why coal investors have nothing to fear.

10 Best Prefered Stocks To Watch For 2014: Charm Communications Inc.(CHRM)

Charm Communications Inc. operates as an advertising agency in China. The company offers a range of advertising agency services from planning and managing the advertising campaigns to creating and placing the advertisements. It places advertisements for its clients on a range of television channels, including CCTV, and satellite and regional television channels, and on other media platforms, including Internet and out-of-home media. The company also engages in media investment management through identifying, securing, and selling of advertising resources. In addition, it provides branding and identity services, including design, development, and production of advertisements; and marketing consulting services. The company is headquartered in Beijing, the People?s Republic of China.

10 Best Prefered Stocks To Watch For 2014: Micrel Incorporated(MCRL)

Micrel Incorporated, doing business as Micrel Semiconductor, designs, develops, manufactures, and markets high-performance analog power, mixed-signal, and digital integrated circuits (ICs) primarily in North America, Europe, and Asia. It offers power management products, including cloud, single-board, and enterprise servers; network switches and routers; storage area networks; and wireless base stations for the networking and communications infrastructure markets. The company also provides power management standard products for industrial, consumer, defense, and automotive electronics markets. In addition, it manufactures custom analog and mixed-signal circuits; and provides wafer foundry services for the customers who produce electronic systems for communications, consumer, and military applications. Further, the company offers general linear parts; power analog circuits; high speed physical media devices and interface ICs; and Ethernet products, which comprise physical l ayer transceivers, media access controllers, switches, and system-on-chip devices. Additionally, it provides radio frequency (RF) data communications products, including QwikRadio family of RF receivers and transmitters, which include garage door openers, lighting and fan controls, automotive keyless entry, and remote controls; and RadioWire transceivers for applications, such as remote metering, security systems, and factory automation. The company?s products address a range of end markets, including cellular handsets, portable computing, enterprise and home networking, wide area and metropolitan area networks, digital televisions, and industrial equipment. Micrel Incorporated sells its products through a network of independent sales representatives, independent distributors, and stocking representative firms, as well as through a direct sales staff. The company was founded in 1978 and is based in San Jose, California.

Advisors' Opinion:
  • [By Beacon Equity]

    Micrel Inc. (NASDAQ: MCRL) is down 9.31% to $13.06 on volume of 1.11 million shares. The company today said it expects lower earnings in the first quarter on lower-than-expected sales to a key device manufacturer in Korea. (NASDAQ:MCRL), (MCRL)

5 Best Gold Stocks To Own For 2014: Atlantic Tele-Network Inc.(ATNI)

Atlantic Tele-Network, Inc. provides telecommunications services to rural, niche, and other under-served markets and geographies in the United States, Bermuda, and the Caribbean. The company, through its subsidiaries, provides wireless and wireline connectivity to residential and business customers, including wireless voice and data services to retail customers under the Alltel name in rural markets located principally in the Southeast and the Midwest; wholesale wireless voice and data roaming services to national, regional, local, and selected international wireless carriers in rural markets located principally in the Southwest and Midwest United States; wireless voice and data services to retail customers under the Cellink name in Guyana, as well as under the CellularOne name in other smaller markets in the Caribbean and the United States; domestic wireline local and long distance telephone services in Guyana; and international voice and data communications in Guyana and internationally. It also offers facilities-based integrated voice and data communications services to enterprise and residential customers in New England primarily in Vermont; and wholesale transport services in New York State. In addition, the company owns and operates terrestrial and submarine fiber optic transport systems. Atlantic Tele-Network, Inc. was founded in 1987 and is headquartered in Beverly, Massachusetts.

10 Best Prefered Stocks To Watch For 2014: Commerzbank Ak.dm50(CZB.L)

Commerzbank Aktiengesellschaft provides banking and financial services to private and corporate customers primarily in Germany, rest of Europe, the United States, and Asia. It accepts savings deposits and time deposits; and offers current accounts, as well as wealth management services, such as asset management and advisory services. The company also provides various services, including payments, flexible financing solutions, interest rate and currency management products, professional investment advisory services, and investment banking solutions primarily to small and mid-sized customers, the public sector, and institutional clients; and trade finance-related services. Its corporate banking products and services comprise financing, cash management, asset management, international business, and risk management, as well as online banking and market information services. In addition, the company offers asset based finance products and services consisting of asset management and leasing; real estate finance for investors and developers; ship financing; and public finance. Further, it provides cash services, trade services, banking products, and market products. Additionally, the company engages in the trading and sale of equity and commodity-related financial products; trading and sale of interest rate, credit, and currency instruments; and provision of arrangement and advisory services for securitisation solutions, and mergers and acquisitions, as well as for equity, debt, and hybrid instruments. It operates approximately 1,200 branches in Germany. The company was founded in 1870 and is headquartered in Frankfurt am Main, Germany.

10 Best Prefered Stocks To Watch For 2014: Compass Minerals Intl Inc(CMP)

Compass Minerals International, Inc., through its subsidiaries, produces and markets inorganic mineral products primarily in North America and the United Kingdom. The company operates in two segments, Salt and Specialty Fertilizer. The Salt segment produces salt and magnesium chloride for use in road deicing and dust control, food processing, water softeners, pool salt, and agricultural and industrial applications. This segment also purchases potassium chloride and sells as a finished product. The Specialty Fertilizer segment produces and markets sulphate of potash crop nutrients and industrial grade sulfate of potash for use in the production of specialty fertilizers for vegetables, fruits, potatoes, nuts, tobacco, and turf grass. The company also produces and markets consumer deicing and water conditioning products, ingredients used in consumer and commercial food preparation, and other mineral-based products for consumer, agricultural, and industrial applications. In ad dition, Compass Minerals provides records management services to businesses located in the U.K. The company operates rock salt mines in Goderich, Ontario, Canada; and Winsford, Chesire, the United Kingdom. It primarily serves producers of intermediate chemical products used in the production of vinyls and other chemicals, and pulp and paper, as well as water treatment and other industrial uses. The company markets its products through direct sales personnel, contract personnel, and a network of brokers or manufacturers? representatives. Compass Minerals International, Inc., formerly known as Salt Holdings Corporation, was founded in 1993 and is headquartered in Overland Park, Kansas.

Advisors' Opinion:
  • [By Chris Stuart]

    Compass Minerals International(CMP) is a provider of highway de-icing salt and specialty fertilizer. The salt segment for Compass currently comprises about 80% of the overall business and is stable, yet slow-growing. The specialty potash segment (20% of sales) produces sulfate of potash (SOP), which is used primarily as a specialty fertilizer for vegetables, fruits, tea, tobacco and grass. The SOP business has much better upside and should fuel growth for the company.

    With margins expected to improve in 2011 and management investing to take advantage of improved potash pricing, the stock looks like a solid investment. TheStreet Ratings has a $115 price target on Compass Minerals.

10 Best Prefered Stocks To Watch For 2014: THERMOGENESIS Corp.(KOOL)

ThermoGenesis Corp. designs, develops, and sells medical products that enable the practice of regenerative medicine worldwide. It offers automated and semi-automated devices, and single-use processing disposables that enable the collection, processing, and cryopreservation of stem cells and other cellular tissues used in the practice of regenerative medicine. Regenerative medicine is a field that uses cell-based therapies to repair or restore lost or damaged tissue and cell function. The company?s products include the AXP System, a medical device that isolates and retrieves stem cells from umbilical cord blood; the BioArchive System, a robotic cryogenic medical device used by cord blood banks for the cryopreservation and archiving of cord blood stem cell units for transplant; the MarrowXpress or MXP System that isolates and concentrates stem cells from bone marrow; Res-Q 60 BMC, a point-of-care bone marrow stem cell processing system; and Res-Q 60 PRP, which is used for t he preparation of autologous platelet rich plasma from a sample of blood at the point of care. It also offers ThermoLine product line, which includes ultra-rapid plasma ThermoLine Freezer and ultra-rapid plasma ThermoLine Thawer; and CryoSeal System, an automated system, which is used to prepare an autologous hemostatic surgical sealant. ThermoGenesis Corp. was founded in 1986 and is based in Rancho Cordova, California.

10 Best Prefered Stocks To Watch For 2014: Titon Hdg(TON.L)

Titon Holdings Plc engages in the design, manufacture, and marketing of ventilation products and window fittings in the United Kingdom and internationally. The company?s products include ventilation systems, ventilators, window handles and fasteners, espagnolettes and shoot bolts, hinges and hinge systems, restrictors, and door locks and handles. It offers its products to house builders, electrical contractors, and window manufacturers. The company was founded in 1972 and is headquartered in Colchester, the United Kingdom.

10 Best Prefered Stocks To Watch For 2014: Fuller Smith & Tnr A(FSTA.L)

Fuller, Smith & Turner P.L.C. engages in the operation of managed pubs and hotels in the United Kingdom and internationally. It also manages pubs operated by third parties under tenancy or lease agreements. The company operates approximately 162 managed pubs and hotels, and 196 tenanted inns in the South of England. In addition, it is involved in brewing and distributing beer, wines, and spirits. The company offers its beers under the London Pride, ESB, Discovery, Organic Honey Dew, HSB, Seafarers Ale, Chiswick Bitter, Bengal Lancer, London Porter, 1845, Golden Pride, Past Masters, Vintage Ale, Brewer?s Reserve, and Mighty Atom brand names, as well as provides seasonal beers. It exports its products to free trade pubs, clubs, and supermarkets in approximately 62 countries. Further, the company, through its Web site, sells accessory products, such as bar towels and pump clips, golf and rugby merchandise, and pint glasses and mugs; and clothing and beer products. Fuller, Sm ith & Turner P.L.C. was founded in 1845 and is headquartered in London, the United Kingdom.

10 Best Prefered Stocks To Watch For 2014: Siebert Financial Corp.(SIEB)

Siebert Financial Corp., through its subsidiary, Muriel Siebert & Co., Inc., engages in the retail discount brokerage and investment banking operations in the United States. The company provides Internet and traditional discount brokerage and related services to retail investors; independent retail execution services; and retail customer services. It also offers various self-directed retirement accounts, for which it acts as agent on various transactions; and lends customers a portion of the market value of certain securities held in the customer?s account through its clearing agent. In addition, the company, through its other subsidiary, Siebert Woman?s Financial Network, Inc., provides products, services, and information to serve women?s financial needs. Further, Siebert Financial Corp. offers equity execution services on an agency basis, as well as equity and fixed income underwriting and investment banking services to institutional investors, and issuers of equity a nd fixed-income securities. The company provides its discount brokerage services through a broker on the telephone, through a wireless device, or via the Internet. It maintains seven retail discount brokerage offices in New York; Jersey City, New Jersey; Boca Raton, Surfside, West Palm Beach, and Naples, Florida; and Beverly Hills, California. The company was founded in 1886 and is headquartered in New York, New York.

10 Best Prefered Stocks To Watch For 2014: Diana Shipping inc. (DSX)

Diana Shipping Inc. provides shipping transportation services. It transports dry bulk cargoes that include commodities, such as iron ore, coal, grain, and other materials along worldwide shipping routes. As of December 31, 2010, the company?s fleet consisted of 23 dry bulk carriers, including 14 Panamax, 1 Post-Panamax, and 8 Capesize dry bulk carriers with a combined carrying capacity of approximately 2.5 million deadweight tonnage. Its customers include national, regional, and international companies. The company was formerly known as Diana Shipping Investments Corp. and changed its name to Diana Shipping Inc. in February 2005. Diana Shipping Inc. was founded in 1999 and is based in Athens, Greece.

Saturday, June 29, 2013

The Most Embarrassing Thing About BlackBerry Earnings

Yesterday was a bad day for BlackBerry (NASDAQ: BBRY  ) bulls, as shares of the Canadian smartphone maker got absolutely crushed after disappointing earnings. The company shipped only 2.7 million BlackBerry 10 devices and 100,000 PlayBook tablets.

The most embarrassing part of the figures has to do with those PlayBook volumes. It turns out that daily-deals leader Groupon (NASDAQ: GRPN  ) ran a promotion at the end of May that helped BlackBerry move more than 5,000 units. That's more than 5% of BlackBerry's total tablet units this quarter.

That deal ended on May 21, and BlackBerry's fiscal quarter ends June 1, so those sales should be included in the figures just released. Like with most Groupons, the daily dealer doesn't disclose the total quantity sold. It only confirms once a minimum threshold is reached -- in this case 5,000. It's quite possible that Groupon sold well more than 5,000 PlayBooks, pitching in even more to BlackBerry's tablet volumes this quarter, but we'll never know.

Groupon isn't known for having the highest-quality customer base. Merchants have long complained that Groupon customers spend only the minimum and have no loyalty. Partnering with the company for a promotion is a risky proposition, and it's quite common for merchants to end up losing money on the deal. However, these concerns don't exactly apply in the context of selling a device.

Worse yet, Groupon inflated the "list price" of the PlayBook, presumably to inaccurately convey greater savings.

Model

"List Price"

Groupon Price

"Savings"

32 GB PlayBook

$599

$150

$449 (75%)

64 GB PlayBook

$699

$190

$509 (73%)

Source: Groupon.

Any buyers who took Groupon's figures at face value were misled. Those were the price points when BlackBerry launched the device more than two years ago, but they certainly don't apply anymore. Even BlackBerry's own site lists the 32 GB model for $179 and the 64 GB model for $219 through resellers, bringing Groupon's actual savings down to just $30. You can even buy a 64 GB PlayBook on Amazon.com for just $181 -- cheaper than the Groupon.

Source: BlackBerry.

Groupon guides its long-term take rate, what it keeps from each transaction, at 30% to 40%. At least 5% of BlackBerry's tablet volume was sold through Groupon, which duped buyers into thinking they were saving up to 75%, and BlackBerry kept only 60% to 70% of the sales proceeds after paying Groupon for its troubles.

All of this was already during the quarter of lowest reported PlayBook unit shipments on record -- no wonder that CEO Thorsten Heins doesn't think tablets are a good business.

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Friday, June 28, 2013

2 Potential Growth Markets Still a Drag for AeroVironment

It's not easy being a government supplier these days. Small-drone manufacturer AeroVironment (NASDAQ: AVAV  ) is finding that out – a terrible fiscal fourth quarter has to give investors pause about the company's growth.

Fourth-quarter revenue was down 51% to $54.1 million and the company lost $0.8 million, or $0.04 per share, in the quarter. What's maybe more alarming is that revenue is expected to be flat next year at $230 million-$250 million from $240.2 million in fiscal 2013.  

With the war in Afghanistan winding down and sequestration cuts hitting the Defense Department's budget, the company's largest segment, unmanned aircraft systems, saw revenue fall 56% in the fourth quarter.

EVs don't save the day
Unmanned aircraft generate a majority of AeroVironment's revenue but electric-vehicle charging stations are seen as a huge opportunity for the company. Despite the success of Tesla Motors (NASDAQ: TSLA  ) in selling electric vehicles the division actually saw a sales decrease in the fourth quarter.

A big problem is that Tesla is the only EV manufacturer to sell a significant number of vehicles and it uses a proprietary charging protocol for high-power charges. That's one reason the company is building its own "Supercharger" network, and a reason AeroVironment isn't selling industry standard charging stations at a fast clip.  

What AeroVironment needs is a big increase in EV sales from Ford, Nissan, and GM before it will see demand pick up. The success of Tesla doesn't really help AeroVironment at all.

Long-term trends
The good news for AeroVironment is that long-term trends are still in its favor. Electric-vehicle sales are growing, and as the technology improves, sales will follow. The Defense Department isn't spending like crazy anymore, but unmanned aircraft are still the wave of the future. The small aircraft AeroVironment uses could even be used in commercial or consumer applications when the market demands it.

Management expects $0.35-$0.50 in earnings next year, and the company has a chance to grow well beyond that in the future. The stock isn't cheap at $20 per share, but if it continues to fall then it might be worth picking up as a growth stock for the future.

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Thursday, June 27, 2013

Top 10 Long Term Companies To Watch For 2014

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Top 10 Long Term Companies To Watch For 2014: Zuoan Fashion Limited(ZA)

Zuoan Fashion Limited, through its subsidiaries, engages in the manufacture, distribution, and retail sale of men?s apparel products and accessories. It apparel products comprise blazers, jackets, sweaters, shirts, T-shirts, leather jackets, down jackets, pants, and jeans, as well as accessories, such as shoes, bags, ties, belts, socks, and scarves. The company offers its products under the Zuoan brand. As of September 30, 2011, it had 1,246 stores in 27 provinces and municipalities of China. The company also sells its products through the retail stores operated by its distributors and sub-distributors under the Zuoan brand name. The company is headquartered in Shanghai, China.

Top 10 Long Term Companies To Watch For 2014: (JAINIRRIG.BO)

Jain Irrigation Systems Limited, an agri-business company, primarily engages in the manufacture and sale of irrigation systems, piping products, agro processed products, and plastic sheets. It offers irrigation systems and components comprising drip irrigation systems, sprinkler irrigation systems, plastic control and safety valves, fertigation systems and chemigation equipment, and water filters; PVC pipes, PE pipes and PE pipe fittings, HDPE pipes, cable duct pipes, and gas pipes; and PVC plastic sheets and poly carbonate sheets. The company also provides food processing products, such as dehydrated onions and vegetables; and agriculture products, including biofertilizers, green houses plant nurseries, and tissue cultures, as well as processed fruits. In addition, it offers solar water heating systems, solar photovoltaic systems, and biogas power plants; hybrid and grafted plants; and poly and shade houses, as well as provides services turnkey project services, and agric ultural and engineering consultancy services. Jain Irrigation Systems Limited offers its solutions and services for the urban household, urban housing, community development, mining, plant tissue culture, chemical, oil and gas exploration, optic fiber ducting, advertisement and signage, landscaping, water shed development, waste land development, fruit and vegetable processing, and farm production and management markets, as well as for small farmers, green houses, and sugar factories. It primarily operates in India, Europe, and North America. The company was founded in 1963 and is based in Jalgaon, India.

Advisors' Opinion:
  • [By Matthews]

    Jain Irrigation Systems Ltd headquartered in Jalgaon, Maharashtra manufactures drip and sprinkler irrigation systems and related components. The company also makes PVC, polyethelene, piping systems, processed fruits, dehydrated onions and vegetables, greenhouses, bio-fertilizers; solar water heating systems and solar photovoltaic appliances (Solar lighting systems) etc. All the products are made bearing in mind the need to conserve nature's precious resources through substitution or value addition.

    Jain Irrigation Systems is the largest irrigation company in India and also the world’s second largest. The company has the largest pool of agricultural scientists, engineers and technicians in the private sector.

Hot Japanese Stocks To Watch For 2014: Takara Resources Inc (TKK.V)

Takara Resources Inc. engages in the acquisition, evaluation, exploration, and development of mineral properties, primarily gold. The company principally holds interests in the Tassawini gold project and the Arakaka joint venture project located in Guyana, South America. It also holds interest in the Miskamowin nickel project located in northern Manitoba. The company is based in Toronto, Canada. Takara Resources Inc. operates as a subsidiary of Victoria Gold Corp.

Top 10 Long Term Companies To Watch For 2014: EnteroMedics Inc.(ETRM)

EnteroMedics Inc., a clinical development stage medical device company, focuses on the design and development of devices that use neuroblocking technology to treat obesity and associated co-morbidities, and other gastrointestinal disorders. The company?s proprietary neuroblocking technology is designed to intermittently block the vagus nerve using electrical impulses. Its product under development is the Maestro System, which is used to limit the expansion of the stomach, control hunger sensations between meals, reduce the frequency and intensity of stomach contractions, and produce a feeling of early and prolonged fullness. The company intends to market its products to potential referral source clinicians, including general practitioners, internists, endocrinologists, and nurses. It has collaboration agreement with Mayo Clinic and Australian Institute of Weight Control. The company was formerly known as Beta Medical, Inc. and changed its name to EnteroMedics Inc. in 2003 . EnteroMedics Inc. was founded in 2002 and is headquartered in St. Paul, Minnesota.

Top 10 Long Term Companies To Watch For 2014: GSI Group Inc.(GSIG)

GSI Group Inc. designs, develops, manufactures, and sells laser-based solutions, laser scanning devices, and precision motion and optical control technologies worldwide. The company?s Laser Products segment provides lasers and laser-based systems for photonics-based applications, such as cutting, welding, marking, engraving, micro-machining, and scientific research. Its Precision Motion and Technologies segment designs, manufactures, and markets air bearing spindles, encoders, thermal printers, laser scanning devices, and light and color measurement systems to original equipment manufacturers. The company?s Semiconductor Systems segment offers laser based production systems for semiconductor, microelectronics, and electronics manufacturing. This segment?s products comprise WaferRepair for dynamic random access memory, flash memory chips, and LCDs; WaferMark for silicon suppliers and integrated circuit factories; and WaferTrim and Circuit Trim for analog and mixed signal sensor and chip resistor devices, as well as for resistor devices. The company sells its products primarily through direct sales force, resellers, distributors, and system integrators. It serves industrial, electronics, automotive, medical, packaging, aerospace, scientific, semiconductor, lighting, military, and motion picture markets. The company was formerly known as GSI Lumonics Inc. and changed its name to GSI Group Inc. in 2005. GSI Group Inc. was founded in 1970 and is based in Bedford, Massachusetts.

Top 10 Long Term Companies To Watch For 2014: EntreMed Inc (ENMD)

EntreMed, Inc. (EntreMed), incorporated in 1991, is a clinical-stage pharmaceutical company. EntreMed's drug candidate is ENMD-2076, an Aurora A and angiogenic kinase inhibitor for the treatment of cancer. ENMD-2076 has completed Phase I studies in patients with advanced solid tumors, multiple myeloma and leukemia and is completing data for a multi-center Phase II study in patients with platinum resistant ovarian cancer. The Company�� other product candidates have includes MKC-1, ENMD-1198 and 2-methoxyestrdiol (2ME2, Panzem) for treatment of rheumatoid arthritis.

ENMD-2076 is a novel orally-active, Aurora A/angiogenic kinase inhibitor with potent activity against Aurora A and multiple tyrosine kinases linked to cancer and inflammatory diseases. ENMD-2076 is relatively selective for the Aurora A isoform in comparison to Aurora B. Aurora kinases are key regulators of the process of mitosis, or cell division, and are often over-expressed in human cancers. ENMD-2076 exerts its effects through multiple mechanisms of action, including anti-proliferative activity and the inhibition of angiogenesis. ENMD-2076 has demonstrated significant, dose-dependent preclinical activity as a single agent, including tumor regression, in multiple xenograft models (such as breast, colon, leukemia), as well as activity towards ex vivo-treated human leukemia patient cells.

Top 10 Long Term Companies To Watch For 2014: National Australia Bank Ltd (NAB.AX)

National Australia Bank Limited provides products, advice and services. In Australia, it operates through National Australia Bank, MLC and UBank. In the United Kingdom, it operates through Clydesdale Bank. In New Zealand, it operates through Bank of New Zealand. In the United States, it operates through Great Western Bank. Segments include Business Banking, Personal Banking, Wholesale Banking, UK Banking and NZ Banking, MLC and NAB and Great Western Ban. As of April 5, 2012, the Company and its associated entities ceased to be a substantial holder in BlueScope Steel Limited. On May 17, 2012, it ceased to be a substantial holder in Spark Infrastructure Group and Sandfire Resources NL. As of August 24, 2012, the Company and its associated entities ceased to be holder in Tabcorp Holdings Limited. In September 2012, the Company and its associated entities have ceased to be a substantial holder in Incitec Pivot Limited, as of August 30, 2012.

Top 10 Long Term Companies To Watch For 2014: Lexicon Pharmaceuticals Inc.(LXRX)

Lexicon Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery and development of drug candidates for the treatment of various human diseases. The company utilizes gene knockout technologies and an integrated platform of medical technologies to systematically study the physiological and behavioral functions of approximately 5,000 genes in mice and assessed the utility of the proteins encoded by the corresponding human genes as drug targets. Its portfolio of orally-delivered small molecule compounds that have completed or are presently conducting phase 2 clinical trails includes LX4211 for the treatment of type 2 diabetes; LX1031 for the treatment of irritable bowel syndrome and other gastrointestinal disorders; LX1032 for the treatment of the symptoms associated with carcinoid syndrome; and LX2931 for the treatment of rheumatoid arthritis and other autoimmune diseases. The company also develops LX1033, an orally-delivered small molecule compound that is in phase 1 clinical trails for the treatment of irritable bowel syndrome and other gastrointestinal disorders. In addition, it develops three orally-delivered small molecule compounds in preclinical development stage that include LX7101 for treatment of glaucoma; LX5061 for the treatment of osteoporosis; and LX2311 for the treatment of autoimmune diseases. Further, the company has small molecule compounds from various additional drug discovery programs in various stages of preclinical research. It has drug discovery and development collaborations with Bristol-Myers Squibb Company; Genentech, Inc.; N.V. Organon; and Takeda Pharmaceutical Company Limited. The company also has a series of agreements with Symphony Icon, Inc. for the financing of clinical development programs; and an alliance with Nuevolution A/S to access Nuevolution?s Chemetics chemistry technology. Lexicon Pharmaceuticals, Inc. was founded in 1995 and is headquartered in The Woodlands, Texas.

Top 10 Long Term Companies To Watch For 2014: 3D Resources Ltd (DDD.AX)

3D Resources Limited engages in the exploration of mineral properties in Australia. It explores for gold, nickel, copper, lead, zinc, and platinum group metals in prospective geological environments within the East Kimberley, the Pilbara, and the Eastern Goldfields of Western Australia; and is also reviewing potential manganese and coal projects in Indonesia. The company holds a 100% interest in the Cosmo Newbery, Halls Creek, Mt Angelo, and Mt Padbury projects; and has entered into an agreement to purchase a 75% of a tenement in the Cosmo Newbery project area. 3D Resources Limited was founded in 2006 and is based in Malaga, Australia.

Top 10 Long Term Companies To Watch For 2014: Progenics Pharmaceuticals Inc.(PGNX)

Progenics Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of therapeutic products to treat the unmet medical needs of patients with debilitating conditions and life-threatening diseases in the United States and internationally. Its primary programs focus on gastroenterology, oncology, and virology. The company offers RELISTOR (methylnaltrexone bromide) subcutaneous injection, a therapy for opioid-induced constipation. It is also conducting a Phase I clinical trial of a human monoclonal antibody-drug conjugate directed against prostate specific membrane antigen (PSMA), a protein found at high levels on the surface of prostate cancer cells, as well as in blood vessels supplying other solid tumors. In addition, the company is developing PRO 140, a viral-entry inhibitor for human immunodeficiency virus (HIV), which is in Phase II clinical testing; and multiplex PI3-Kinase inhibitors for the treatment of cancer. Progenics Pha rmaceuticals, Inc. has license agreement with Salix Pharmaceuticals, Ltd. for the development and commercialization of RELISTOR worldwide other than Japan. The company was founded in 1986 and is based in Tarrytown, New York.

Wednesday, June 26, 2013

When Value Investing Fails

Though I am definitely a value investing advocate, there are simply times when basic value concepts like fair value and margin of safety fail to provide useful conclusions in analysis. Case in point: the valuation of a fast-growing business like LinkedIn (NYSE: LNKD  ) . To illustrate, I'll attempt to find LinkedIn's fair value and its margin of safety.

Meteoric growth is hard to estimate
LinkedIn's first-quarter revenue increased by 72% from the year-ago quarter. That's impressive. Yet it presents a serious problem for value investors.

Value investors, of course, seek out the intrinsic value of a business. And forecasting growth rates for the business going forward is central to any valuation of an ongoing business. But LinkedIn's current high growth rates make forecasting the next several years very difficult. High growth rates present investors with extremely high levels of uncertainty. Difficult questions arise: When will the decline in growth rates begin? To what degree will it unfold? The answers to these two questions will drastically affect valuation.

Sure, year-over-year revenue growth rates have topped 85% in each of the past three years, making LinkedIn's high growth rates pretty consistent. But this doesn't mean we can expect revenue to grow by exceptional rates over the next several years, or even next year for that matter.

For instance, in each of the last three years, Apple's (NASDAQ: AAPL  ) revenue and EPS year-over-year growth rates topped 44%. But in the trailing 12 months, EPS is up only 1.8% from the year before. Who could have seen that coming? Apple shares have fallen right along with growth rates, trading more than 40% lower than they were about nine months ago. Apple is no longer a growth stock. In fact, at today's prices, it could make an excellent value investing candidate or even be considered a worthy dividend stock.

What is LinkedIn worth?
Ignoring the notion that growth stocks are tough to value, let's give LinkedIn a proper shot at a valuation.

Consider two different scenarios. In Scenario A, LinkedIn manages to increase free cash flow by 50% next year, followed by growth rates that decelerate by about 10% annually for the next nine years.

Year

Growth Rate

1

50%

2

45%

3

40.5%

4

36.5%

5

32.8%

6

29.5%

7

26.6%

8

23.9%

9

21.5%

10

19.4%

Given these assumptions, a discounted cash flow valuation yields a fair value of about $197 for LinkedIn shares, giving shares about an 11% margin of safety at today's price around $177.

But in Scenario B, things don't go quite as well. Free cash flow growth rates decelerate by 15% every year.

Year

Growth Rate

1

50%

2

42.5%

3

36.1%

4

30.7%

5

26.1%

6

22.2%

7

18.9%

8

16%

9

13.6%

10

11.6%

This scenario also seems realistic. Yet now investors face a conundrum. If a scenario like this unfolds, a better estimate of the fair value of LinkedIn's shares is $132, based on a discounted cash flow valuation. In other words, shares would be about 33% overvalued at today's price.

We could also explore a Scenario C, in which growth rates in excess of 40% are sustained for more than five years. In this case, LinkedIn shares would be grossly undervalued.

Herein lies the problem with applying the concepts of value investing to stocks like LinkedIn. Slight changes in estimated growth rates for these fast-growing companies present an uncomfortably wide range of fair value estimates, leaving value investors with nothing more than a headache.

Another approach
So does this mean stocks like LinkedIn do not make the grade as an investment? Not necessarily. Another way to add some context to the stock is to look at the company's addressable market.

LinkedIn's largest operating segment, recruiting, accounts for about 57% of revenue. And fortunately for investors, the segment is plush with opportunity. There's an estimated field of 200,000 corporate clients, and only about 18,000 use LinkedIn. Its recruiting segment already appears to be on a path of massive market share gains, with the segment's revenue up 80% in the first quarter of 2013 from the year-ago quarter.

In other words, LinkedIn's addressable market is huge.

Be flexible
Does LinkedIn's huge addressable market imply the stock is undervalued? No, but it does present a new way to look at its opportunities.

We have to face the fact that there's just no excellent way to find the fair value of the shares of fast growing companies like LinkedIn. Investors brave enough to put their money in these stocks should do so only with a very strong conviction of the company's competitive advantage and its addressable market. A plan to hold for a very long time is essential because the astronomic valuations pinned to stocks like these will most likely be accompanied by very volatile price swings.

Typical value investing methods may not always work. Even when they don't, there's no reason to turn a cold shoulder on a stock. Instead, change your approach and tread carefully.

This incredible tech stock is growing twice as fast as Google and Facebook, and more than three times as fast as Amazon.com and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table -- and why he's so confident this will be a huge winner in 2013 and beyond. Just click here to watch!

 

Top 10 Airline Stocks For 2014

Last year, FedEx (NYSE: FDX  ) unveiled a plan to boost profitability by better aligning its cost structure with global demand, which has remained subdued ever since the Great Recession. The restructuring entailed three main programs: rationalizing the FedEx Express network by eliminating unprofitable capacity; reducing staffing costs through a voluntary buyout program; and replacing outdated aircraft with newer, more efficient models.

Removing old aircraft from the FedEx Express fleet offers the prospect of significant long-term cost savings for the company. Like most cargo companies, FedEx uses planes that are older (on average) than a typical passenger airline's fleet. However, that means it still operates many outdated, gas-guzzling aircraft like the Airbus A300, Airbus A310, Boeing (NYSE: BA  ) 727, and MD-10. These aircraft also have higher maintenance costs than their modern equivalents, due to their age.

Top 10 Airline Stocks For 2014: Southwest Airlines Co (LUV)

Southwest Airlines Co., incorporated on March 9, 1967, operates Southwest Airlines, a passenger airline, which provides scheduled air transportation in the United States. As of December 31, 2011, the Company was serving 72 cities in 37 states throughout the United States. During the year ended December 31, 2011, the Company added addition services in two new states and three new cities: Charleston, South Carolina; Greenville-Spartanburg, South Carolina; and Newark, New Jersey. Southwest provides point-to-point. On May 2, 2011, the Company acquired AirTran Holdings, Inc. (AirTran).

AirTran�� route system provides hub-and-spoke, rather than point-to-point, service, with approximately half of AirTran�� flights originating or terminating at its hub in Atlanta, Georgia. AirTran also serves a range of markets with non-stop service from bases of operation in Baltimore, Maryland; Milwaukee, Wisconsin; and Orlando, Florida. As of December 31, 2011, AirTran was serving 68 United States and near-international destinations, including San Juan, Puerto Rico; Cancun, Mexico; Montego Bay, Jamaica; Nassau, The Bahamas; Oranjestad, Aruba; Punta Cana, Dominican Republic, and Bermuda. As of January 31, 2012, AirTran served 65 destinations. During 2011, approximately 71% of Southwest�� customers flew non-stop, and Southwest�� average aircraft trip stage length was 664 miles with an average duration of approximately 1.8 hours.

As of December 31, 2011, Southwest offered 25 weekday roundtrips from Dallas Love Field to Houston Hobby, 13 weekday roundtrips from Phoenix to Las Vegas, 13 weekday roundtrips from Burbank to Oakland, and 12 weekday roundtrips from Los Angeles International to Oakland. Southwest offers connecting service opportunities from over 60 Southwest cities to different Volaris airports in Mexico including Aguascalientes, Guadalajara, Mexico City (MEX), Mexico City-Toluca (TLC), Morelia, and Zacatecas. The Company�� International Connect portal conducts two separate transac! tions: one with Southwest�� reservation system and one with Volaris�� reservation system.

Southwest bundles fares into three categories: Wanna Get Away, Anytime, and Business Select. Wanna Get Away fares are lowest fares. Business Select fares are refundable and changeable, and funds may be applied toward future travel on Southwest. Business Select fares also include additional perks, such as priority boarding, a frequent flyer point multiplier, priority security and ticket counter access in select airports, and one complimentary adult beverage coupon for the day of travel. The Company�� Internet Website, southwest.com, is the avenue for Southwest Customers to purchase tickets online. During 2011, southwest.com accounted for approximately 78% of all Southwest bookings. During 2011, approximately 84% of Southwest�� Passenger revenues came through its Website, including revenues from SWABIZ, the Company�� business travel reservation Web page.

Top 10 Airline Stocks For 2014: Delta Air Lines Inc (DAL)

Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company�� route network gives it a presence in every domestic and international market. Delta�� route network is centered around the hub system it operate at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Each of these hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The Company�� network is supported by a fleet of aircraft that is varied in terms of size and capabilities.

Delta has bilateral and multilateral marketing alliances with foreign airlines to improve its access to international markets. These arrangements can include code-sharing, reciprocal frequent flyer program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, ticket office co-location, and other marketing agreements. Its international code-sharing agreements enable it to market and sell seats to an expanded number of international destinations. The Company has international codeshare arrangements with Aeromexico, Air France, Air Nigeria, Alitalia, Aeroflot, China Airlines, China Eastern, China Southern, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air, Olympic Air, Royal Air Maroc, VRG Linhas Aereas (operating as GOL), Vietnam Airlines, Virgin Australia and WestJet Airlines.

In addition to the Company�� marketing alliance agreements with individual foreign airlines, it is a member of the SkyTeam airline alliance. Delta also has frequent flyer and reciprocal lounge agreements with Hawaiian Airlines, and codesharing agreements with American Eagle Airlines (American Eagle) and Hawaiian Airlines. It has air service agreements with multiple do! mestic regional air carriers that feed traffic to its route system by serving passengers primarily in small-and medium-sized cities.

Through the Company�� regional carrier program, it has contractual arrangements with 10 regional carriers to operate regional jet and, in certain cases, turbo-prop aircraft using its DL designator code. In addition to Delta�� wholly owned subsidiary, Comair, it has contractual arrangements with ExpressJet Airlines, Inc. and SkyWest Airlines, Inc., both subsidiaries of SkyWest, Inc.; Chautauqua Airlines, Inc. and Shuttle America Corporation, both subsidiaries of Republic Airways Holdings, Inc.; Pinnacle Airlines, Inc. and Mesaba Aviation, Inc. (Mesaba), both subsidiaries of Pinnacle Airlines Corp. (Pinnacle); Compass Airlines, Inc. (Compass) and GoJet Airlines, LLC, both subsidiaries of Trans States Holdings, Inc. (Trans States), and American Eagle.

The Company�� SkyMiles program allows program members to earn mileage for travel awards by flying on Delta, Delta�� regional carriers and other participating airlines. Mileage credit may also be earned by using certain services offered by program participants, such as credit card companies, hotels and car rental agencies. In addition, individuals and companies may purchase mileage credits. The Company reserves the right to terminate the program with six months advance notice, and to change the program�� terms and conditions at any time without notice.

SkyMiles program mileage credits can be redeemed for air travel on Delta and participating airlines, for membership in the Company�� Delta Sky Clubs and for other program participant awards. Mileage credits are subject to certain transfer restrictions and travel awards are subject to capacity controlled seating. During the year ended December 31, 2011, program members redeemed more than 275 billion miles in the SkyMiles program for more than 12 million award redemptions. During 2011, 8.2% of revenue miles flown on Delta were from a! ward trav! el.

The Company generates cargo revenues in domestic and international markets through the use of cargo space on regularly scheduled passenger aircraft. Delta is a member of SkyTeam Cargo, an airline cargo alliance. SkyTeam Cargo offers a network spanning six continents and provides customers an international product line.

The Company has several other businesses arising from its airline operations, including aircraft maintenance, repair and overhaul (MRO); staffing services for third parties; vacation wholesale operations, and its private jet operations. Delta�� MRO operation, known as Delta TechOps, is an airline MRO in North America. In addition to providing maintenance and engineering support for its fleet of approximately 775 aircraft, Delta TechOps serves more than 150 aviation and airline customers. Its staffing services business, Delta Global Services, provides staffing services, professional security, training services and aviation solutions to approximately 150 customers. The Company�� vacation wholesale business, MLT Vacations, is the provider of vacation packages in the United States. Its private jet operations, Delta Private Jets, provides aircraft charters, aircraft management and programs allowing members to purchase flight time by the hour.

The Company competes with SkyTeam, United Air Lines, Continental Airlines, Lufthansa German Airlines, Air Canada, American Airlines, British Airways and Qantas.

5 Best Rising Stocks To Invest In 2014: United Continental Holdings Inc.(UAL)

United Continental Holdings, Inc., through its subsidiaries, engages in the provision of passenger and cargo air transportation services. As of February 24, 2011, it operated a total of approximately 5,675 flights a day to 372 airports on 6 continents from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, and Tokyo, as well as in Washington, D.C. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. on October 1, 2010. United Continental Holdings, Inc. was founded in 1934 and is headquartered in Chicago, Illinois.

Advisors' Opinion:
  • [By Admin]  

    United Continental Holdings provides passenger and cargo air transportation services. UAL recently traded at $17.3 and lost 15.8% during the past 12 months. The stock has a market cap of $5.7 billion, P/E ratio of 12.5 and forward P/E ratio of 3.5. The stock has total debt/equity ratio of 7 and Beta of 1.04.

Top 10 Airline Stocks For 2014: Latam Airlines Group SA (LFL)

LAN Airlines S.A. (LAN), incorporated in 1983, is the international and domestic passenger airline in Latin America and the cargo operator in the region. As of February 9, 2012, LAN and its affiliates provided domestic and international passenger services in Chile, Peru, Ecuador, Argentina and Colombia and cargo operations through the use of belly space on its passenger flights and cargo freighter aircraft through its cargo airlines in Chile, Brazil, Colombia and Mexico. LAN and its affiliates offered passenger flights to 15 destinations in Chile, 59 destinations in other South American countries, 15 destinations in other Latin American countries and the Caribbean, five destinations in the United States, two destinations in Europe and four destinations in the South Pacific and, through various codeshare agreements, service to 25 additional destinations in North America, 16 additional destinations in Europe, 27 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia, as of February 9, 2012. LAN and its affiliates provide cargo service to all of their passenger destinations and to 20 additional destinations served only by freighter aircraft. LAN also offers other services, such as ground handling, courier, logistics and maintenance. LAN and its affiliates operated a fleet, with 135 passenger aircraft and 14 cargo aircraft as of December 31, 2011. On February 15, 2011, Lan Pax Group S.A., subsidiary of Lan Airlines S.A. acquired 100% of Colombian society AEROASIS S.A.

LAN is primarily involved in the transportation of passengers and cargo. Its operations are carried out principally by Lan Airlines and also by a number of different subsidiaries. As of February 28, 2011, in the passenger business the Company operated through six main airlines: Lan Airlines, Transporte Aereo S.A. (which does business under the name Lan Express), Lan Peru S.A. (Lan Peru), Aerolane Lineas Aereas Nacionales del Ecuador S.A. (Lan Ecuador), Lan Argentina S.A. (Lan ! Argentina, previously Aero 2000 S.A.) and the Aerovias de Integracion Regional, Aires S.A. (Aires). As of February 28, 2011, the Company held a 99.9% interest in Lan Express through direct and indirect interests, a 70.0% interest in Lan Peru through direct and indirect interests, a 71.9% indirect interest in Lan Ecuador, a 99.0% indirect interest in Lan Argentina and a 94.99% indirect interest in Aires (a Colombian entity which was acquired on November 26, 2010). Its cargo operations are carried out by a number of companies, including Lan Airlines and Lan Cargo. As of February 28, 2011, the Company held a 69.2% interest in Aero Transportes Mas de Carga S.A. de C.V. (MasAir), through direct and indirect participations, a 73.3% interest in ABSA through direct and indirect participations, and a 90.0% interest in LANCO through direct and indirect participations. In the cargo business, the Company markets itself primarily under the Lan Cargo brand. In addition to its air transportation activities, the Company provides a series of ancillary services. It offers handling services, courier services and logistics, small package and express door-to-door services through Lan Airlines and various subsidiaries.

Passenger Operations

As of February 28, 2011, the Company operated passenger airlines in Chile, Peru, Ecuador, Argentina and Colombia. As of February 28, 2011, our passenger operations were performed through airlines in Chile, Peru, Ecuador, Argentina and Colombia where we operate both domestic and international services. As of February 28, 2011, the Company�� network consisted of 15 destinations in Chile, 14 destinations in Peru, four destinations in Ecuador, 14 destinations in Argentina, 24 destinations in Colombia, 14 destinations in other Latin American countries and the Caribbean, five destinations in the United States, one destination in Canada, three destinations in Europe and four destinations in the South Pacific. Within Latin America, it has routes to and from Argentina, B! olivia, B! razil, Chile, Colombia, Cuba, the Dominican Republic, Ecuador, Mexico, Peru, Uruguay and Venezuela. The Company also flies to a variety of international destinations outside Latin America, including Auckland, Fort Lauderdale, Frankfurt, Los Angeles, Madrid, Miami, Mount Pleasant (Falkland Islands), New York, Toronto, Papeete (Tahiti), Paris, San Francisco, and Sydney. In addition, as of February 28, 2011, through its various code-share agreements, the Company offered service to 25 additional destinations in North America, 16 additional destinations in Europe, 25 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia. As of February 28, 2011, the Company operated scheduled international services from Chile, Peru, Ecuador and Argentina through Lan Airlines; Lan Express in Chile; Lan Peru in Peru; Lan Ecuador in Ecuador; Lan Argentina in Argentina and Aires in Colombia. Its international network combines the Company�� Chilean, Peruvian, Ecuadorian, Argentinean and Colombian affiliates. It provides long-haul services out of its four main hubs in Santiago, Lima, Guayaquil and Buenos Aires. It also provides regional services from Chile, Peru, Ecuador and Argentina.

Cargo Operations

The Company�� cargo business operates on the same network used by the passenger airlines business, which is supplemented by freighter-only operations. The Company carries cargo for a variety of customers, including other international air carriers, freight-forwarding companies, export oriented companies and individual consumers. As of February 28, 2011, the Company operated a fleet of 140 aircraft, comprised of 126 passenger aircraft and 14 cargo aircraft.

The Company competes with UPS, FedEx, Centurion, Transportes Aereos Mercantiles Panamericanos S.A., Polar Air, Cargolux, Lufthansa Cargo, Martinair and Air France-KLM.

Top 10 Airline Stocks For 2014: Copa Holdings SA (CPA)

Copa Holdings, S.A. (Copa Holdings), incorporated on May 06, 1998, is a Latin American provider of airline passenger and cargo service through its two principal operating subsidiaries, Copa Airlines and Copa Colombia. Copa Airlines operates from its position in the Republic of Panama, and Copa Colombia provides service within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica, complemented with service within Colombia. As of December 31, 2012, the Company operated a fleet of 83 aircraft with an average age of 5.13 years; consisting of 57 modern Boeing 737-Next Generation aircraft and 26 Embraer 190 aircraft. . As of December 31, 2012, the Company offers approximately 334 daily scheduled flights among 64 destinations in 29 countries in North, Central and South America and the Caribbean, mainly from its Panama City Hub.

Copa provides passengers with access to flights to more than 150 other destinations through codeshare arrangements with UAL pursuant to which each airline places its name and flight designation code on the other�� flights. As of December 31, 2012, Copa had firm orders, including purchase and lease commitments, for 35 additional Boeing 737-Next Generation aircraft. Copa also has options for an additional 14 Boeing 737-Next Generation aircraft.

The Company competes with Avianca-Taca, American Airlines, Delta Air Lines, American Airlines and LAN Group.

Advisors' Opinion:
  • [By Kathy Kristof]

    Headquarters: Panama City, Panama

    52-Week High: $85.25

    52-Week Low: $57.03

    Annual Sales: $1.8 bill.

    Projected Earnings Growth: 18% annually over the next five years 


    U.S. airlines have to scratch and claw for every penny of profit they earn. Not so for Panama City-based Copa Holdings, says Bob McAdoo, airline analyst with Imperial Capital, a Los Angeles investment firm. With a hub in the Southern Hemisphere’s cross-roads, Copa has few direct rivals. That has allowed Copa to charge premium prices for its flights and register operating profit margins of 15% to 20% year after year. As economies in Brazil and the rest of Latin America continue to expand, Copa is likely to benefit because it gives travelers the most convenient way to hop around the hemisphere. 

    Copa’s big advantage lies in the setup of Panama City’s airport, explains McAdoo. Panama knows that it’s a crossroads, so it treats connecting passengers as though they’re hopping on a domestic flight – no trip through customs unless you leave the airport. That saves time, and potentially the need to get a visa for a country you’re just passing through, making the airport the ideal hub for business travelers in a hurry.

Top 10 Airline Stocks For 2014: JetBlue Airways Corporation(JBLU)

JetBlue Airways Corporation provides passenger air transportation services in the United States. As of December 31, 2011, it operated approximately 700 daily flights to 70 destinations in 22 states, Puerto Rico, and Mexico; and 12 countries in the Caribbean and Latin America through a fleet of 120 Airbus A320 aircraft and 49 EMBRAER 190 aircraft. The company, through its subsidiary, LiveTV, LLC, provides in-flight entertainment, voice communication, and data connectivity systems and services for commercial and general aviation aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service, and cabin surveillance systems. JetBlue Airways Corporation was founded in 1998 and is based in Forest Hills, New York.

Tuesday, June 25, 2013

Macey: Why The London Whale Scandal Was Blown Out of Proportion

We interview Jonathan Macey, who is Yale University's Sam Harris Professor of Corporate Law, Corporate Finance and Securities Law. Jonathan has authored several books on corporations and the law, and joins The Motley Fool to talk about his most recent work, The Death of Corporate Reputation.

A full transcript follows the video.

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Brendan Byrnes: I wanted to ask you about the JPMorgan (NYSE: JPM  ) London Whale scandal. Their stock price now is up higher than it was back prior to the scandal. Do you think this is any kind of hit to their reputation, or hurts them long-term?

Jonathan Macey: It's interesting. Every scandal is different.

The JPMorgan London Whale scandal was very different than, say, the Goldman Sachs (NYSE: GS  ) Abacus scandal. The Goldman Sachs Abacus scandal, they're ripping off people. In the London Whale, you have a guy who's proprietary trading. He's trading with JPMorgan's own money, and he's losing money. He's just making bad bets.

There's nothing in that scandal that impugns JPMorgan's honesty or integrity, or the way they interface with customers. It's all about, do they have adequate internal controls...?

The London Whale scandal is really all about...if anybody cares about it, it really should be the shareholders, to the extent that it suggests weakness of controls, but as we see from the market, this seems to be something that JPMorgan has under control. It seems to be a bit aberrational.

Clearly, the company is taking it very seriously, so I don't think that the London Whale scandal really is...I think the market's right in not reacting to it. I think people are blowing it tremendously out of proportion. It's their problem. They made a mistake -- a big mistake; it cost them billions -- but they're moving on. They make a lot of money, and even in that quarter they didn't show a loss.

Monday, June 24, 2013

The Danger Lurking in Your Next Brokerage Statement

Most of our readers at the Motley Fool take more than a passing interest in their investments, keeping up to date on events hitting the financial markets. But for millions of Americans, the first clue of any signs of trouble in the markets will come shortly after the end of this month, as they get their quarterly brokerage and mutual fund account statements in the mail.

Inside those statements, there'll be some bad news for investors. But it won't come from the direction that most of them are expecting, especially if they've seen recent headlines about triple-digit moves in the stock market. Rather, what they'll see will convince them that they've once again been had, and they'll end up questioning their overall investment strategy as a result.

The big bad bond market
Investors have been taught that when they're scared of stocks, they should buy bonds. The reason to do so is that ordinarily, bonds are less volatile than stocks and less prone to see dramatic drops in value. As a result, if you're looking to reduce the overall ups and downs in your portfolio -- especially as you approach and reach retirement age -- then financial advisors will often point you toward buying bonds.

But these are anything but ordinary times. Massive bond purchases from the Federal Reserve at the rate of more than $1 trillion per year have arguably distorted the functioning of the bond market, and with the recent spike in bond yields after the Fed merely hinted at the eventuality of needing to reduce its purchasing program, evidence of that disruption appears clearer than ever.

Bond prices move in the opposite direction as yields. As a result, as you're opening your brokerage statements in early July, you can expect to see troubling results like these:

The biggest bond fund in the market, the PIMCO Total Return Fund (NASDAQMUTFUND: PTTRX  ) , is on track to lose almost 5% this quarter -- even taking the interest income that fund shareholders received into account. That comes despite the fund's emphasis on short-term bonds, which usually move less abruptly than longer-dated bonds, but the greater volatility reflects moves that the fund takes to boost its leverage. Index investors won't see much better results. Vanguard Total Bond Market Index Fund (NASDAQMUTFUND: VBTLX  ) is down almost 4%, with its greater emphasis on Treasuries helping to offset the somewhat heavy concentration on bonds with maturities of 20 years or longer. If you invest in some niche areas in bonds, expect a particularly harsh shock. iShares S&P National AMT-Free Muni Bond ETF (NYSEMKT: MUB  ) is down 8% so far this quarter, as tax-free bonds haven't been any haven from rising interest rates. International bond funds have gotten hit even harder, with PowerShares Emerging Markets Sovereign Debt (NYSEMKT: PCY  ) down 14% since the end of March as investors flee less-secure rising economies in favor of established markets.

In addition, even stocks geared at generating income haven't been immune. Mortgage-REIT Annaly Capital (NYSE: NLY  ) , once the go-to place for high-dividend yields and strong total returns, has plunged 20% since the beginning of April. A steepening yield curve might help mortgage REITs in the long run, but for now, the Fed's continuing purchases of mortgage-backed bonds hamper Annaly's ability to maximize its profits. More broadly, rising interest rates hurt a wide range of rate-sensitive stocks, and so you'll see many dividend-paying stocks having suffered somewhat deeper declines than the broader market.

What to expect
Unfortunately, even if you're smart enough not to panic-sell in the face of declines that have already occurred, many of the millions of people opening their brokerage statements to this nasty surprise won't be so disciplined. Therefore, you can expect further selling from emotion-driven investors, and smart buyers will likely wait until that selling pressure ends before jumping in to score bargain-basement bonds.

Don't be afraid of your brokerage statement, but don't ignore what it's telling you either. With many people getting their first taste of losses in a while, you need to prepare for what could become an even bumpier ride in the months to come.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Tune in every Monday and Wednesday for Dan's columns on retirement, investing, and personal finance. You can follow him on Twitter @DanCaplinger.

Sunday, June 23, 2013

10 Best High Tech Stocks To Watch For 2014

Las Vegas Sands (NYSE:LVS) will report its 1Q 2013 earnings on May 1. Despite a slowdown in the Chinese economy last year, the company continued to do well in Macau, the world's biggest casino market. Given the success of Las Vegas Sands' integrated resorts in Macau and increased gaming revenues in China, we expect good results in the first quarter. However, growth in the company's Singapore operations is likely to be slow due to relatively strict government regulations and a decline in the number of foreign visitors

Riding High On Macau

For the first three months of 2013, Macau's gaming revenues surged 15% to $10 billion compared to the same period last year. In March alone, revenues were up 25% amounting to $4 billion (source). While Macau's strong growth will help the casino operators in the region, Las Vegas Sands in particular will be a key beneficiary as it has established a critical mass in the market with its diverse properties and resorts. This gives the company a competitive edge over the other players such as Wynn Resorts (NASDAQ:WYNN) and MGM Resorts International (NYSE:MGM).

10 Best High Tech Stocks To Watch For 2014: pSivida Corp.(PSDV)

pSivida Corp., together with its subsidiaries, develops drug delivery products for treatment of back-of-the-eye diseases that are administered by implantation, injection, or insertion. The company?s lead product candidate includes Iluvien, which is in Phase III clinical trials and delivers fluocinolone acetonide (FA) for the treatment of diabetic macular edema (DME), a cause of vision loss. It is also conducting Phase II clinical trials with Iluvien for the treatment of wet and dry form of age-related macular degeneration, and retinal vein occlusion. In addition, the company?s products include Retisert for the treatment of posterior uveitis, an autoimmune condition characterized by inflammation of the posterior of the eye that can cause sudden or gradual vision loss; and Vitrasert for cytomegalovirus retinitis, a blinding eye disease that occurs in individuals with advanced AIDS. It is developing the Latanoprost product, an injectable, bioerodible drug delivery implant i n Phase I/II dose-escalating study for the treatment of glaucoma and ocular hypertension; the Posterior Uveitis product candidate in a Phase I/II study for the treatment of posterior uveitis; BioSilicon technology system, which is nano-structured porous silicon designed for use as a drug delivery platform and to deliver smaller molecules; and Tethadur, which utilizes BioSilicon to deliver large biologic molecules, including peptides and proteins. It has strategic collaborations with Bausch & Lomb Incorporated; Alimera Sciences, Inc.; Pfizer, Inc.; and Intrinsiq Materials Cayman Limited. The company was founded in 1987 and is headquartered in Watertown, Massachusetts.

10 Best High Tech Stocks To Watch For 2014: Amlin Ord 25p(AML.L)

Amlin plc engages in underwriting non-life insurance and reinsurance in the Lloyd?s market, Bermuda, and Continental Europe. It provides insurance cover to commercial enterprises; and reinsurance protection to other insurance companies, as well as property and casualty, marine, and aviation insurance. The company?s insurance products cover airlines, airports, aviation products, and space; bloodstock, cargo, offshore energy, fine arts and specie, hull, marine liability, livestock, pleasure crafts, war and allied perils, and yacht; and professional lines, accident and health, auto, binders, energy and industry, and properties. It also offers insurance products for financial institutions; home insurance products; and employers and/or public/products liability products that cover commercial and industrial risks. In addition, the company underwrites commercial properties and professional indemnity, as well as underwrites various commercial motor fleet classes. Further, it wri tes various reinsurance products comprising marine, aviation, and satellite; catastrophe coverage; and proportional reinsurance coverage. The company markets its products through its independent insurance brokers. Amlin plc was founded in 1903 and is based in London, the United Kingdom.

Top Low Price Companies To Invest In Right Now: Klondex Mines Com Npv (KDX.TO)

Klondex Mines Ltd., together with its subsidiary, Klondex Gold and Silver Mining Co., engages in evaluating, acquiring, owning, exploiting, exploring, and developing mineral properties in Nevada. The company focuses on exploring and developing gold and silver properties. Its principal property is the 100% owned Fire Creek Property totaling 1,235.39 acres of owned/leased fee lands located in north central Nevada. The company was formerly known as Attila Resources Limited and changed its name to Klondex Mines Ltd. in October 1974. Klondex Mines Ltd. was founded in 1971 and is headquartered in Vancouver, Canada.

10 Best High Tech Stocks To Watch For 2014: Interval Leisure Group Inc.(IILG)

Interval Leisure Group, Inc., together with its subsidiaries, provides membership and leisure services to the vacation industry in the United States, the United Kingdom, and internationally. The company operates through two segments, Membership and Exchange, and Management and Rental. The Membership and Exchange segment offers travel and leisure related products and services to owners of vacation interests, and others primarily through various membership programs, as well as related services to resort developer clients. As of December 31, 2011, its Interval Network comprised approximately 2,600 resorts located in approximately 75 countries, as well as had approximately 1.8 million vacation ownership interest owners enrolled as members. The Management and Rental segment offers hotel, condominium resort, timeshare resort and homeowners association management, and vacation rental services to vacationers and vacation property owners. As of the above date, this segment provided management and rental services to approximately 60 vacation properties and hotels. Interval Leisure Group, Inc. was incorporated in 2008 is headquartered in Miami, Florida.

10 Best High Tech Stocks To Watch For 2014: Kingsmen Creatives Ltd(5MZ.SI)

Kingsmen Creatives Ltd., an investment holding company, provides integrated marketing solutions. The company?s Exhibitions and Museums segment produces exhibition displays for trade shows and promotional events; interiors and displays for museums and visitor centers; and thematic and scenic displays for theme parks. Its Interiors segment provides interior fitting-out services to commercial and retail properties. Kingsmen?s Research and Design segment offers design works for up market specialty stores, departmental stores, eateries, museums, visitors? centers, corporate offices, showrooms, trade shows, events, promotional functions, and festivals. The company?s Integrated Marketing Communication segment involves in the provision of event management and branding consultancy services. It also provides electrical engineering, graphic design and production services, advertising, and design consultancy and planning management, as well as design and construction facilities to exhibitors. The company operates primarily in Singapore, Greater China, the United States, Canada, Malaysia, rest of Asia, Europe, Vietnam, Indonesia, and the Middle East. Kingsmen Creatives Ltd. was founded in 1976 and is based in Singapore.

10 Best High Tech Stocks To Watch For 2014: Apricus Biosciences Inc(APRI)

Apricus Biosciences, Inc. engages in the design and development of pharmaceutical products and product candidates based on its patented NexACT drug delivery technology. The NexACT drug delivery technology is designed to enhance the delivery of an active drug to improve therapeutic outcomes and reduce systemic side effects that accompany existing oral and injectable medications. The company?s pipeline includes Vitaros, approved in Canada for the treatment of erectile dysfunction; and Totect approved in the U.S. for the treatment of anthracycline extravasation, as well as compounds in development from pre-clinical through pre-registration, focused on sexual dysfunction, oncology, dermatology, autoimmune, pain, anti-infectives, diabetes, and consumer healthcare. The company was founded in 1987 and is headquartered in San Diego, California.

10 Best High Tech Stocks To Watch For 2014: Clarke(t)

T.Clarke plc, a building services contractor, provides electrical and mechanical installation services and supplies associated equipment. The company offers information communications technology (ICT) services in the areas of structured cabling and connectivity, network infrastructure and security, networked energy management, data centre infrastructure, and managed and support services; facilities management services, such as preventative, reactive, and planned maintenance solutions; and green technologies services, which comprise photovoltaics, rainwater harvesting, biomass boilers, ground source heating, air source heating, wind turbines, lighting, and carbon reduction audit services. It also provides massive reading station redevelopment, cross rail, border rail link, and underground power upgrade services for the rail sector; lifecycle building services combining mechanical and electrical works with ICT for utilities and technologies sectors; lifecycle services for ho tel and residential sectors, which include electrical, ICT, and mechanical systems design, installation, commissioning, and maintenance; and mechanical and electrical contracting services for education, healthcare, government/local authority, retail and leisure, stadiums, transport, towers, media, and residential sectors. In addition, the company manufactures and prefabricates elements of an installation, as well as engineering components. T.Clarke plc was founded in 1889 and is headquartered in London, the United Kingdom.

Advisors' Opinion:
  • [By Toby]

    A major provider of telecommunications services to consumers and businesses in the United States and internationally, this household name fell from a high of almost $43 in 2007 to under $21 at the bear-market low.?This blue chip took almost two years to consolidate following its fall, but in July it broke from resistance at $26.50 beginning a series of bullish stairsteps that recently took AT&T (NYSE:T) to just under $32.

    The stock shows a solid and regular pattern of steady buying, has positive momentum, and if it can break from its recent descending triangle could, within six months, easily challenge its old high at $43.?S&P has AT&T rated as a “Strong Buy 5-Stars,” its highest rating.?The annual dividend is $1.72 providing a yield of 5.59%.

  • [By JON C. OGG]

    AT&T, Inc. (NYSE: T) closed at $28.93 and the analyst consensus price target is $32.78.  It carries a 5.9% dividend yield and the stock is down 9.4% from its 52-week high. The price to book value is 1.5 and its return on equity is 18%.  S&P gives a “A-” local long-term credit ranking.  Our only caveat on AT&T is the pending T-Mobile deal, which could result in a multi-billion charge if the buyout fails to win approval.  The yield is amazing here and it did not have the iPhone defections at a rate that many expected.

10 Best High Tech Stocks To Watch For 2014: Service Stream Ltd (SSM.AX)

Service Stream Limited provides network services, including access, design, build, installation, and maintenance in Australia. The company operates in three segments: Fixed Communications, Mobile Communications, and Energy & Water. The Fixed Communications segment provides a range of design, construction, and maintenance services to copper and fibre optic telecommunications infrastructure assets. The Mobile Communications segment provides turnkey and project management services for the access, design, and construction of wireless telecommunications infrastructure. This segment offers these services to the mobile network providers. The Energy & Water segment provides a range of metering and environmental services to utilities and government authorities; and contact centre services and end to end customer support for primary contracts. Service Stream Limited is headquartered in Melbourne, Australia.

10 Best High Tech Stocks To Watch For 2014: Pegasystems Inc.(PEGA)

Pegasystems Inc. develops, markets, licenses, and supports software to automate business processes primarily in the United States, the United Kingdom, and rest of Europe. The company offers PegaRULES Process Commander, which provides a platform to build, deploy, and change enterprise applications; purpose or industry-specific solution frameworks that enable organizations to implement new customer-facing practices and processes, and provide customized or specialized processing to meet the needs of different customers, departments, geographies, or regulatory requirements; and Pega customer relationship management software to automate customer service inquiries and marketing, and apply analytics to predict and adapt customer service processes. It also offers Pega decision management products, which include Pega Decision Strategy Manager and Next-Best-Action Advisor that support decision-making for offer management, risk, and other marketing and customer management solutions; and Pega Cloud, which enables customers to create and/or run Pega applications using an Internet-based infrastructure. In addition, the company provides implementation, consulting, training, and technical support services to its customers. The company markets its software and services primarily through its direct sales force to financial services organizations, healthcare organizations, insurance companies, communications and media organizations, and government agencies. Pegasystems Inc. was founded in 1983 and is headquartered in Cambridge, Massachusetts.

10 Best High Tech Stocks To Watch For 2014: Data I/O Corporation(DAIO)

Data I/O Corporation designs, manufactures, and sells programming systems used by designers and manufacturers of electronic products principally in the United States, Europe, and the Far East. Its programming system products are used to program integrated circuits (ICs), devices, or semiconductors. The company offers off-line and in-line automated programming systems, including RoadRunner Series of in-line automated programming systems that feature just-in-time in-line programming; PS Series of off-line medium/high volume and high mix automated systems, which support multiple media types; and FLX500, an off-line and moderate volume automated system that features self-learning plug-and-play operation. It also provides non-automated programming systems, including FlashPAK II/III, a low mix and low volume system that offers network control via Ethernet; Sprint/Unifamily, a low volume and engineering non-automated system; and FlashCORE, a programming architecture. In addition, the company provides services related to hardware support, system installation and repair, and device programming. It primarily serves users of programmable semiconductor devices, including original equipment manufacturers in wireless and consumer electronics and automotive electronics, and their electronic manufacturing service contract manufacturers. Data I/O markets and sells its products directly, as well as through internal telesales, and indirect sales representatives and distributors. The company was founded in 1969 and is headquartered in Redmond, Washington.

Saturday, June 22, 2013

Best Recreation Companies To Own In Right Now

The services sector expanded slightly for May, according to an Institute for Supply Management report released today. The Institute's Non-Manufacturing Index clocked in at 53.7% for May, up 0.6 percentage points from April and 0.1 points below analyst expectations.

An above-50 rating signals overall expansion, and the services sector has managed to increase its economic activity for 41 consecutive months. The index is comprised of 10 components, with all three of the main components registering gains for May. Business activity led the improvement at 56.5%, while new orders clocked in at 56%. Both business activity and new orders added 1.5 points from April's report. The services employment index barely managed growth, falling 1.9 points to chalk up a 50.1% reading for May.

On an industry-by-industry level, 13 of the 18 industries reflected reported growth. Accommodation and food services made the largest gains, followed by transportation and warehousing and arts, entertainment, and recreation. Mining reported the largest losses, while health care and social assistance and real estate, rental and listing also went red.

Best Recreation Companies To Own In Right Now: Accell Group NV (ACCG.AS)

Accell Group NV is a Netherlands-based holding company. The Company and its subsidiaries divides its business into two segments: Bicycle & Bicycle Parts, active in the design, development, production, marketing and sales of bicycles, bicycle parts and accessories; and Fitness, providing fitness equipment. It sells bicycles under the Batavus, Bremshey, Ghost, Haibike, Hercules, Koga, Lapierre, Loekie, Redline, Sparta, Staiger, Tunturi, Winora, XLC and Raleigh brands via specialist bicycle retailers as well as bicycle parts under the Juncker Bike Parts and Wiener Bike Parts brands and fitness equipment under the Bremshey Sport brand. The Company�� main markets are the Netherlands, Germany, France, and European countries. The Company has production facilities in the Netherlands, Germany, France, Hungary and Belgium. As of December 31, 2011, it operated through 21 wholly owned subsidiaries. On May 22, 2012, the Company acquired Raleigh Cycle Limited.

Best Recreation Companies To Own In Right Now: Smith & Wesson Holding Corp (SWHC)

Smith & Wesson Holding Corporation (Smith & Wesson), incorporated on June 17, 1991, is a manufacturer of firearms. The Company manufactures a range of handguns, modern sporting rifles, hunting rifles, black powder firearms, handcuffs, and firearm-related products and accessories for sale to a range of customers, including gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and globally. It sell its products under the Smith & Wesson brand, the M&P brand, the Thompson/Center brand, and the Walther brand. The Company manufactures its firearm products at its facilities in Springfield, Massachusetts and Houlton, Maine. On July 26, 2012, it sold all of the assets of Smith & Wesson Security Solutions, Inc.

Firearms

During the fiscal year ended April 30, 2012 (fiscal 2012), the Company introduced multiple new handgun and modern sporting rifle models, and one new bolt action rifle platform. The Company's rifle introductions included the addition of the M&P15 300 Whisper to the Company's line of modern sporting rifles. As of April 30, 2012, the Company participated in three categories of the long-gun market and both core categories of the handgun market.

Handguns

The Company manufactures an variety of handgun models that include revolvers and pistols. A revolver is a handgun with a cylinder that holds the ammunition in a series of rotating chambers that are successively aligned with the barrel of the firearm during each firing cycle. There are two general types of revolvers: single-action and double-action. The Company's small-frame revolvers have been carried by law enforcement personnel and personal defense-minded citizens. The Company's revolvers are available in a variety of models and calibers, with applications in virtually all professional and personal markets.

The Company�� M! &P15 Series of modern sporting rifles are designed to satisfy the functionality and reliability needs of global military, law enforcement, and security personnel. These rifles are also popular as sporting target rifles and are sold to consumers through the Company's sporting good distributors, retailers, and dealers. The Company has a range of product portfolio of modern sporting rifles, which includes a lower price-point, sport model, a .22 caliber model, and a fully automatic model designed for the exclusive use of military and law enforcement agencies throughout the world.

Hunting Firearms

The Company manufactures three lines of bolt-action rifles under its Thompson/Center brand consisting of several models in each line. The Company's hunting rifles are offered in 16 different calibers. Bolt-action rifles operate by the cycling of a bolt handle that allows for both the loading and unloading of rounds through a magazine fed system.

During fiscal 2012, the Company introduced the Dimension bolt action rifle platform. Under the Company's Thompson/Center brand, the Company also offers seven models of American-made single shot black powder, or muzzle loader, firearms. The Company offers eight models of interchangeable, single shot firearm systems that deliver numerous gun, barrel, caliber configurations, and finishes. These systems can be configured as a center-fire rifle, rim-fire rifle, shotgun, black powder firearm, or single-shot handgun for use across the entire range of big- and small-game hunting.

Handcuffs

The Company manufactures handcuffs and restraints in the United States. The Company fabricates these products from the carbon or stainless steel.

Smith & Wesson Academy

Through the Smith & Wesson Academy, the Company offers instruction designed to meet the training needs of law enforcement and security customers worldwide. Classes are conducted at the Company's facility in Springfield, Massachusetts or o! n locatio! n around the world.

Specialty Services

The Company's services include forging, heat treating, finishing, and plating. It provides services to third-party customers.

The Company competes with Ruger,Taurus, Beretta, Glock, Heckler & Koch, Sig Sauer, Springfield Armory, Bushmaster, Rock River, Stag Arms, DPMS, Browning, Marlin, Remington, Ruger, Savage, Weatherby, CVA, Traditions, and Winchester.

5 Best Warren Buffett Stocks For 2014: Accell Group NV (ACCEL)

Accell Group NV is a Netherlands-based holding company. The Company and its subsidiaries divides its business into two segments: Bicycle & Bicycle Parts, active in the design, development, production, marketing and sales of bicycles, bicycle parts and accessories; and Fitness, providing fitness equipment. It sells bicycles under the Batavus, Bremshey, Ghost, Haibike, Hercules, Koga, Lapierre, Loekie, Redline, Sparta, Staiger, Tunturi, Winora, XLC and Raleigh brands via specialist bicycle retailers as well as bicycle parts under the Juncker Bike Parts and Wiener Bike Parts brands and fitness equipment under the Bremshey Sport brand. The Company�� main markets are the Netherlands, Germany, France, and European countries. The Company has production facilities in the Netherlands, Germany, France, Hungary and Belgium. As of December 31, 2011, it operated through 21 wholly owned subsidiaries. On May 22, 2012, the Company acquired Raleigh Cycle Limited. Advisors' Opinion:
  • [By Tom Konrad]

    Accell is a leading bicycle manufacturer and a leader in electric bikes based in the Netherlands with worldwide sales mostly in Europe but expanding rapidly in the United States and Asia.  The company's strategy is to leverage its strong distribution network by acquiring strong brands in a highly fragmented industry.  In 2012, they acquired Raleigh, which was a slightly larger than usual acquisition.  Integrating Raleigh took longer than management expected, and depressed third quarter earnings and the company's current share price.  The company has a variable annual dividend, but based on the last payment of 0.782 euros, it's currently trading at a 5.9% annual yield.  Stock appreciation in 2013 could be driven by the start of synergies from the Raleigh acquisition, increased adoption of electric bikes in the US, or easing of uncertainty in Europe.

    Because smaller investors may find Accell difficult to buy through their broker's foreign trading desk, they may want to substitute one of my upcoming alternative picks.

Best Recreation Companies To Own In Right Now: Smith & Wesson Holding Corp (SWHC.O)

Smith & Wesson Holding Corporation (Smith & Wesson), incorporated on June 17, 1991, is a manufacturer of firearms. The Company manufactures a range of handguns, modern sporting rifles, hunting rifles, black powder firearms, handcuffs, and firearm-related products and accessories for sale to a range of customers, including gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and globally. It sell its products under the Smith & Wesson brand, the M&P brand, the Thompson/Center brand, and the Walther brand. The Company manufactures its firearm products at its facilities in Springfield, Massachusetts and Houlton, Maine. On July 26, 2012, it sold all of the assets of Smith & Wesson Security Solutions, Inc.

Firearms

During the fiscal year ended April 30, 2012 (fiscal 2012), the Company intr oduced multiple new handgun and modern sporting rifle models, and one new bolt action rifle platform. The Company's rifle introductions included the addition of the M&P15 300 Whisper to the Company's line of modern sporting rifles. As of April 30, 2012, the Company participated in three categories of the long-gun market and both core categories of the handgun market.

Handguns

The Company manufactures an variety of handgun models that include revolvers and pistols. A revolver is a handgun with a cylinder that holds the ammunition in a series of rotating chambers that are successively aligned with the barrel of the firearm during each firing cycle. There are two general types of revolvers: single-action and double-action. The Company's small-frame revolvers have been carried by law enforcement personnel and personal defense-minded citizens. The Company's revolvers are available in a variety of models and calibers, with applications in virtually all pr ofessional and personal markets.

The Company� �! s M&P15 Series of modern sporting rifles are designed to satisfy the functionality and reliability needs of global military, law enforcement, and security personnel. These rifles are also popular as sporting target rifles and are sold to consumers through the Company's sporting good distributors, retailers, and dealers. The Company has a range of product portfolio of modern sporting rifles, which includes a lower price-point, sport model, a .22 caliber model, and a fully automatic model designed for the exclusive use of military and law enforcement agencies throughout the world.

Hunting Firearms

The Company manufactures three lines of bolt-action rifles under its Thompson/Center brand consisting of several models in each line. The Company's hunting rifles are offered in 16 different calibers. Bolt-action rifles operate by the cycling of a bolt handle that allows for both the loading and unloading of rounds through a magazine fed system.

< p>During fiscal 2012, the Company introduced the Dimension bolt action rifle platform. Under the Company's Thompson/Center brand, the Company also offers seven models of American-made single shot black powder, or muzzle loader, firearms. The Company offers eight models of interchangeable, single shot firearm systems that deliver numerous gun, barrel, caliber configurations, and finishes. These systems can be configured as a center-fire rifle, rim-fire rifle, shotgun, black powder firearm, or single-shot handgun for use across the entire range of big- and small-game hunting.

Handcuffs

The Company manufactures handcuffs and restraints in the United States. The Company fabricates these products from the carbon or stainless steel.

Smith & Wesson Academy

Through the Smith & Wesson Academy, the Company offers instruction designed to meet the training needs of law enforcement and security customers worldwide. Classes are conduct ed at the Company's facility in Springfield, Massachus! etts o! r! on loca! tion around the world.

Specialty Services

The Company's services include forging, heat treating, finishing, and plating. It provides services to third-party customers.

The Company competes with Ruger,Taurus, Beretta, Glock, Heckler & Koch, Sig Sauer, Springfield Armory, Bushmaster, Rock River, Stag Arms, DPMS, Browning, Marlin, Remington, Ruger, Savage, Weatherby, CVA, Traditions, and Winchester.