Best Cheap Stocks For 2019: December 2013

Tuesday, December 31, 2013

10 Best Warren Buffett Stocks To Buy Right Now

LONDON -- One of Warren Buffett's famous investing sayings is "be fearful when others are greedy and greedy only when others are fearful" -- or, in other words, sell when others are buying and buy when they're selling.

But we might expect Foolish investors to know that, and looking at what Fools have been selling recently could provide us with an indication of investments that might be past their prime.

So, in this series of articles, we're going to look at what customers of The Motley Fool ShareDealing Service have been selling in the past week or so, what might have made them decide to do so, and what the future might hold for the company concerned.

Dividend obsession
SSE� (LSE: SSE ) -- the utilities group formerly known as Scottish & Southern Energy -- has long been a favorite of income-seeking investors because of its spectacular dividend record. It's one of just only five FTSE 100 companies that has, according to SSE's website, delivered a real increase in its dividend for the past 13 successive years. They even describe their one strategic objective of "sustained real dividend growth" as their "dividend obsession".

10 Best Warren Buffett Stocks To Buy Right Now: Southern Cross Exploration NL (SXX)

Southern Cross Exploration NL is an Australia-based company engaged in the investment in the Bigrlyi Uranium Joint Venture, on which pre-development investigations and further drilling were carried out; exploration for gold and minerals, reviews of opportunities for participation in and/or acquisition of mineral exploration and mining ventures, and examination of projects in respect of different commodities, share investments, loans and other securities. The Bigrlyi project is located in the Ngalia Basin, northwest of Alice Springs, in the Northern Territory. The Company's interest in the Bigrlyi Uranium Joint Venture is one of its assets, in joint venture with two multi-billion dollar companies, CGNPC - via the Operator, Energy Metals Ltd (EME) - and Paladin Energy Ltd (PDN). Advisors' Opinion:

[By idahansen]
Due to the impact of The Great Recession, stocks in the agricultural sector such as Caterpillar (NYSE: CAT), The Mosiac Company (NYSE: MOS), and Potash of Saskatchewan (NYSE: POT) are trading well below highs. The exchange traded fund for the industry, DBA Power Shares, (NYSE: DBA), is down more than 17% for the last year. Despite this bearish trend, legendary investors such as Warren Buffett, George Soros, and Jim Rogers are very positive for the agriculture group. With the long term bullish outlook for the sector from the greatest investors in history, small cap stocks active in the fertilizer sector such as Sirius Minerals (LSE: SXX) and Americas Petrogas (TSX: BOE) are especially attractive.

10 Best Warren Buffett Stocks To Buy Right Now: Putnam Managed Municipal Income Trust(PMM)

Putnam Managed Municipal Income Trust is a close-ended fixed income mutual fund launched and managed by Putnam Investment Management LLC. It is co-managed by Putnam Investments Limited (U.K.). The fund invests in fixed income markets of United States. It invests in a diversified portfolio of tax-exempt municipal securities which typically includes high-yield securities that are below investment grade and involve special risk considerations. The fund benchmarks the performance of its portfolio against Barclays Capital Municipal Bond Index. Putnam Managed Municipal Income Trust was formed on February 24, 1989 and is domiciled in United States.

Top 10 Value Companies To Buy Right Now: Mellanox Technologies Ltd.(MLNX)

Mellanox Technologies, Ltd., a fabless semiconductor company, engages in the design, development, marketing, and sale of interconnect products primarily in North America, Israel, Europe, and Asia. It offers semiconductor interconnect products that facilitate data transmission between servers, communications infrastructure equipment, and storage systems in enterprise data centers, high-performance computing, and embedded systems. The company provides solutions based on InfiniBand, including host channel adapter, switch and gateway ICs, adapter cards, switch and gateway systems, cables, and software. Its products also support the Ethernet standard. The company provides adapters to server, storage, communications infrastructure, and embedded systems OEMs as ICs or standard card form factors with PCI-X or PCI express interfaces; support server operating systems, including Linux, Windows, AIX, HPUX, Solaris, and VxWorks; and InfiniBand switch ICs to server, storage, communicati ons infrastructure, and embedded systems OEMs to create switching equipment. The company offers its products under the Mellanox, BridgeX, ConnectX, InfiniBlast, InfiniBridge, InfiniHost, InfiniPCI, InfiniRISC, PhyX, InfiniScale, and Virtual Protocol Interconnect trademarks in the United States. It primarily serves enterprise data center, high-performance computing, and embedded end-user markets, as well as embedded systems OEMs. The company sells its products directly, as well as through a network of domestic and international sales representatives, and independent distributors. Mellanox Technologies, Ltd. was incorporated in 1999 and is headquartered in Yokneam, Israel.

Advisors' Opinion:

[By Selena Maranjian]
Finally, Tiger Global's biggest closed positions included Starz�and Yandex N.V. Other closed positions of interest include Mellanox (NASDAQ: MLNX ) . Mellanox, based in Israel, is a semiconductor company. Its last few years were quite strong, as it invested heavily in cloud computing and beat Wall Street estimates, though its latest earnings report was mixed. Mellanox is buying Kotura, a high-speed networking technology company. Some wonder whether Mellanox's best years are behind it, as it faces significant competition. �

10 Best Warren Buffett Stocks To Buy Right Now: OceanFirst Financial Corp.(OCFC)

OceanFirst Financial Corp. operates as the holding company for OceanFirst Bank that provides community banking services to retail, government, and business customers primarily in Ocean, Monmouth, and Middlesex counties in New Jersey. Its deposit products include money market accounts, savings accounts, interest-bearing checking accounts, non-interest bearing accounts, and time deposits. The company?s loan portfolio comprises conventional first mortgage loans secured by one-to-four family residences, residential mortgage loans, commercial real estate loans, multi-family and land loans, and real estate construction loans; consumer loans, such as home equity loans and lines of credit; and commercial loans. In addition, it offers trust and asset management, and merchant check card services; and sells alternative investment products, including mutual funds, annuities, and life insurance. The company operates 22 branches, as well as a loan production office and a trust and weal th management office. OceanFirst Financial Corp. was founded in 1902 and is based in Toms River, New Jersey.

10 Best Warren Buffett Stocks To Buy Right Now: Radioshack Corporation(RSH)

RadioShack Corporation engages in the retail sale of consumer electronic goods and services through its RadioShack store chain and kiosk operations. Its products include postpaid and prepaid wireless handsets and communication devices, such as scanners and global positioning system (GPS) products; home entertainment, wireless, music, computer, video game, and GPS accessories; media storage, power adapters, digital imaging products, and headphones; home audio and video end-products, personal computing products, residential telephones, and voice over Internet protocol products; digital cameras, digital music players, toys, satellite radios, video gaming hardware, camcorders, and general radios; general and special purpose batteries and battery chargers; and wires and cables, connectivity products, components and tools, and hobby products. The company also provides consumers access to third-party services, such as prepaid wireless airtime and extended service plans in its ser vice platform. In addition, it manufactures various products, including telephones, antennas, wires, and cable products, as well as various hard-to-find parts and accessories for consumer electronics products; and provides repair services. As of March 31, 2011, the company operated 4,467 company-operated retail stores under the RadioShack brand name in the United States; and 1,304 kiosks located in Target and Sam?s Club stores. As of December 31, 2010, it operated 211 company-operated stores under the RadioShack brand, 9 dealers, and 1 distribution center in Mexico; a network of 1,207 RadioShack dealer outlets, including 34 located outside of North America; and 4 distribution centers in the United States. Further, the company sells its products through its Website, radioshack.com. RadioShack Corporation was founded in 1899 and is based in Fort Worth, Texas.

Advisors' Opinion:

[By Paul Ausick]
Big Earnings Movers: Netflix Inc. (NASDAQ: NFLX) is down 9% at $322.99 after a stellar report and some cautionary comments from the CEO. VMware Inc. (NYSE: VMW) is up 2.9% at $85.01 after a very positive report. Delta Air Lines Inc. (NYSE: DAL) is up 3.3% at $25.51 after a solid quarter. Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) is up 3.7% at $36.35 on an earnings boost from its recent oil and gas acquisitions. RadioShack Corp. (NYSE: RSH) is down 17.9% at $2.89 after a reporting dismal results.
[By Jeremy Bowman]
What: Shares of Radio Shack (NYSE: RSH ) took an afternoon dive today, falling as much as 23% after trade publication Debtwire revealed that the company is on the verge of a liquidity crisis.
[By GuruFocus]
Dr. Paul Price wrote an article called Wake-Up Calls Often Come Too Late. He discussed the collapses of the stock prices with Green Mountain Coffee (GMCR), Netflix (NFLX) and Soda Steam (SODA). As pointed correctly out by Adib Motiwala, value investors are rarely hurt by companies like Green Mountain Coffee, Netflix and Soda Steam. The reason is simple. These stocks are usually traded at extremely high valuation and value investors would normally avoid the situations like these. Value investors are much more likely hurt by the stocks like Nokia (NOK), RadioShack (RSH) and Research-in-Motion (RIMM) as these stocks have been traded for very low valuations. Value investors thought that they were buying into value, while they were actually buying into value traps. The valuation just gets lower, and lower.

10 Best Warren Buffett Stocks To Buy Right Now: Exxon Mobil Corporation(XOM)

Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products. The company manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and other specialty products. As of December 31, 2010, it operated 35,691 gross and 30,494 net operated wells. The company has operations in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. Exxon Mobil Corporation was founded in 1870 and is based in Irving, Texas.

Advisors' Opinion:

[By Lee Jackson]
Exxon Mobil Corp. (NYSE: XOM) is very levered to oil pricing and should see a large benefit from the increase in oil pricing. The stock also has�sold off significantly from the late July highs and may provide a solid entry point for investors. The UBS price target for the stock is $91. The consensus estimate is pegged at $95.50. Investors are paid a 2.9% dividend.
[By Rich Smith]
Air Combat Command did not say whether the funds released Monday were related to the $2.3 billion in jet fuel supply contracts awarded to ExxonMobil (NYSE: XOM ) and other major oil suppliers, announced by the Department of Defense in June. In any event, funds authorized by Congress to reinstate these flight missions will only pay for flights through October 1.�After that, and absent new funding, flight time will have to be cut again.
[By David Smith]
He'd better hustle, however. Houston-based Cheniere Energy (NYSE: LNG) has been permitted to build the first LNG plant at Sabine Pass, Texas. And Golden Pass LNG, 70% owned by state-run Qatar Petroleum International and 30% by ExxonMobil (NYSE: XOM ) , also has received permission to export LNG from the United States. Several other export permit applications are pending.

10 Best Warren Buffett Stocks To Buy Right Now: Amkor Technology Inc.(AMKR)

Amkor Technology, Inc. provides outsourced semiconductor packaging and test services in the United States and internationally. It offers package formats and services using wirebonding and flip chip interconnect technologies that connect the die to the package carrier. The company?s package carriers include leadframe packages that utilize metal and place the electrical interconnect leads to the system board around the perimeter of the package; substrate packages, which utilize a laminate as the package carrier; and wafer-level packages. It provides chip scale packages comprising stacked chip scale packages for chipsets and memory applications; package-on-package solutions for the integration of logic and memory in a single footprint; and system-in-package modules that integrate two or more chips and passive device elements into a single package. The company also offers ball grid array packages comprising flip chip ball grid array packages that are used with silicon nodes f or small devices and other applications; and plastic ball grid array packages, which use wirebond technology. In addition, it provides other packaging services, such as wafer bumping services. Further, the company offers semiconductor testing services, including wafer testing or probe, final testing, strip testing, and end-of-line test services; and specialized logistical services, such as security certification and anti-counterfeit measures. It primarily serves the communications, consumer, computing, networking, automotive, and industrial markets. Amkor Technology, Inc. was founded in 1968 and is headquartered in Chandler, Arizona.

Advisors' Opinion:

[By Alex Planes]
What: Shares of Amkor Technology (NASDAQ: AMKR ) are up by over 10% today after beating expectations on both top and bottom lines in its first-quarter earnings report.

10 Best Warren Buffett Stocks To Buy Right Now: Tawana Resources NL(TAW.AX)

Tawana Resources NL engages in the exploration and evaluation of diamondiferous kimberlites and alluvials primarily in South Africa, Australia, and Botswana. The company also explores for gold and base metals in Liberia. It has interests in Daniel project, Kareevlei Wes, St Augustines, Lexshell, and Perdevlei properties in South Africa; Flinders Island and Eyre Peninsula properties in Australia; and Orapa property in Botswana. The company has a strategic alliance with Gryphon Minerals Ltd. Tawana Resources NL was incorporated in 1998 and is headquartered in Melbourne, Australia.

10 Best Warren Buffett Stocks To Buy Right Now: C.A. Bancorp Inc Com Npv (BKP.TO)

C.A. Bancorp Inc. is a private equity firm specializing in management buyouts, acquisitions, expansions, restructurings, refinancing, PIPE transactions of middle-market companies, and other alternative investment opportunities. It also participates in open market purchases, equity investments in private issuers, and privatization of public companies. The firm seeks to invest in industrials, real estate, infrastructure, and financial services. Within industrials, it seeks to invest in mature industrial companies with a focus on manufacturing, distribution, and service sectors. The firm�s investment in real estate includes industrial, commercial, healthcare, hospitality, and retail properties. Its infrastructure investment opportunities focus on power generation, transportation, and utilities. Within financial services the firm invests in Canadian and international financial services businesses, including asset managers and investment counselors. From time to time, the firm will seek to invest in Capital Pool Companies within the real estate, infrastructure, and other asset-rich areas. It seeks to invest in the private and public companies based in Canada. The firm�s public investments will focus on mid-market companies trading on the Toronto Stock Exchange. It typically invests between $0.5 million and $20 million in companies with enterprise values between $25 million and $200 million. The firm seeks to pursue investments that offer returns between 1.5 percent and three percent. It seeks a board seat in its portfolio companies. The firm exits its investments through sale to strategic buyers or financial investors, open market sales, normal course retirement of securities, refinancing, and public offerings. It was previously known as C.A. Bancorp Ltd. C.A. Bancorp Inc. is based in Ontario, Canada.

10 Best Warren Buffett Stocks To Buy Right Now: Voyager Oil & Gas Inc.(VOG)

Voyager Oil & Gas, Inc. engages in the exploration and production of oil and gas in the United States. It primarily focuses on oil shale resource prospects in Montana, North Dakota, Colorado, and Wyoming. As of May 17, 2011, the company controlled approximately 141,500 net acres in the five primary prospect areas comprising 28,000 net acres targeting the Bakken/Three Forks in North Dakota and Montana; 14,200 net acres targeting the Niobrara formation in Colorado and Wyoming; 800 net acres targeting a Red River prospect in Montana; 33,500 net acres in a joint venture targeting the Heath Shale formation in Musselshell, Petroleum, Garfield, and Fergus counties of Montana; and 65,000 net acres in a joint venture in the Tiger Ridge gas field in Blaine, Hill, and Chouteau counties of Montana. It supplies energy and fuel for industrial, commercial, and individual consumers. The company is based in Billings, Montana.

Monday, December 30, 2013

Best Medical Companies To Invest In Right Now

On this day in economic and business history...

Candles, soap, and a bit of serendipity led to the creation of one of the world's most successful business partnerships: Procter & Gamble (NYSE: PG ) . English emigrant William Procter and Irish emigrant James Gamble, who had both traveled to Cincinnati, Ohio, for medical purposes in the early 19th century, became business partners and brothers-in-law after each man met and married one of Alexander Norris' daughters. Norris convinced candle-maker Procter and soap-maker Gamble to work together, and the two distinct businesses became one under the P&G brand on April 12, 1837.

Their first year was not easy. P&G not only had to compete with 14 other Cincinnati soap and candle makers, but it had to do so at the beginning of the Panic of 1837, which marked the start of one of the worst depressions in American history, lasting for more than five years. P&G persevered through these tough times (as you might expect) to grow into the world's largest consumer-goods company by the present day. Here's a brief timeline of the company's most notable early events:

Best Medical Companies To Invest In Right Now: Covidien PLC (COV)

Covidien Public Limited Company is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. It operates its businesses through three segments: Medical Devices, which includes the development, manufacture and sale of endomechanical instruments, energy devices, soft tissue repair products, vascular products, oximetry and monitoring products, airway and ventilation products; Pharmaceuticals, which includes the development, manufacture and distribution of specialty pharmaceuticals and active pharmaceutical ingredients, and Medical Supplies, SharpSafety products and original equipment manufacturer products. In May 2012, it acquired Newport Medical Instruments, Inc. In May 2012, it acquired superDimension, Ltd. In June 2012, the Company acquired Oridion Systems Ltd. In October 2012, its Mallinckrodt acquired CNS Therapeutics, Inc. In January 2013, the Company acquired CV Ingenuity. Advisors' Opinion:

[By Keith Speights]
Covidien (NYSE: COV ) battles against 3M for market share in the medical devices and supplies arena. Net sales for Covidien's medical devices unit in 2012 were $8.1 billion. The company's medical supplies segment contributed another $1.7 billion in sales. The total of the two business segments nearly doubles that of 3M Health Care.
[By Jon C. Ogg]
Covidien Ltd. (NYSE: COV) was started as Buy at Needham & Co.

Halliburton Co. (NYSE: HAL) was reinstated as Outperform and added to the U.S. Focus List with a new price target of $58 (versus $48.30 now) at Credit Suisse, and it was reiterated as Buy and the price target was raised to $63 from $58 by Sterne Agee.

Best Medical Companies To Invest In Right Now: EntreMed Inc (ENMD.PH)

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. E NMD-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.

10 Best Undervalued Stocks To Buy Right Now: Medtronic Inc (MDT)

Medtronic, Inc. (Medtronic), incorporated on April 23, 1957, is engaged in medical technology - alleviating pain, restoring health, and extending life for millions of people worldwide. As of April, 27, 2012, the Company functions in two operating segments that manufacture and sells device-based medical therapies. The Company's operating segments include Cardiac and Vascular Group, which consists of Cardiac Rhythm Disease Management (CRDM) and CardioVascular, and Restorative Therapies Group, which consists of Spinal, Neuromodulation, Diabetes and Surgical Technologies. Medtronic serves hospitals, physicians, clinicians, and patients in more than 120 countries worldwide. The Company's primary customers include hospitals, clinics, third-party health care providers, distributors, and other institutions, including governmental health care programs and group purchasing organizations. In August 2013, Medtronic, Inc. announced the closing of the acquisition of Cardiocom. Effective September 3, 2013, Medtronic Inc acquired a 30% stake in NGC Medical SpA.

Cardiac Rhythm Disease Management

CRDM develops, manufactures, and markets products for the diagnosis, treatment, and management of heart rhythm disorders and heart failure, including implantable devices, leads and delivery systems, products for the treatment of atrial fibrillation (AF), and information systems for the management of patients with CRDM devices. The Company's principal products offered by CRDM business include Implantable Cardiac Pacemakers (Pacemakers), Implantable Cardioverter Defibrillators (ICDs), Implantable Cardiac Resynchronization Therapy Devices (CRT-Ds and CRT-Ps), AF Products, Diagnostics and Monitoring Devices and Patient Management Tools. The Company's pacemaker systems are compatible with certain magnetic resonance imaging (MRI) machines. This includes the Revo MRI SureScan with United States Food and Drug Administration approval and the Advisa and Ensura MRI SureScan models with Conformite Europeene (CE)! Mark approval. Medtronic also continues to market the Adapta product family, which includes the Adapta, Versa, Sensia, and Relia models.

The Medtronic ICDs is the Protecta family with SmartShock technology, including the Lead Integrity Alert, a technology designed to improve the detection of lead fractures. Devices in the ICD family are the Protecta XT, Protecta, Cardia, and Egida models. Medtronic also continues to market the Secura and Maximo II devices. The Medtronic CRT-Ds is the Protecta family with SmartShock technology, including Protecta XT and Protecta, and the CRT-P devices are Consulta and Syncra. Medtronic also continues to market the Consulta, Cardia, Egida, and Maximo II CRT-D devices. In addition to these devices, Medtronic has an offering of left heart leads and delivery catheters with its Attain family of products. The Company's portfolio of AF products includes the Arctic Front Cardiac CryoAblation Catheter designed to treat paroxysmal AF by performing pulmonary vein isolation. The Company also offers the Reveal XT Insertable Cardiac Monitor, which is designed to identify and quantify episodes of AF. The Reveal DX and Reveal XT Insertable Cardiac Monitors devices are used to record the heart's electrical activity before, during, and after transient symptoms such as syncope and palpitations to help provide a diagnosis. It has a number of patient management tools, such as CareLink, Paceart, and CardioSight Service. CareLink enables patients to transmit data from their pacemaker, ICD, CRT-D, or Insertable Cardiac Monitors using a portable monitor that is connected to a standard telephone line or cellular network using the Medtronic M-Link accessory.

The Company competes with St. Jude Medical, Inc., Boston Scientific Corporation, Biotronik, Inc. and Sorin Group.

CardioVascular

CardioVascular is comprised of three businesses: Coronary, Endovascular and Peripheral, and Structural Heart. The Coronary business includes therapies to treat ! coronary ! artery disease (CAD) and hypertension. The products contained within this business include coronary stents and related delivery systems, along with a broad line of balloon angioplasty catheters, guide catheters, guidewires, diagnostic catheters, and accessories. The products offered by its Coronary business include Percutaneous Coronary Intervention (PCI) and Renal Denervation. The Endovascular and Peripheral business is comprised of a range of products and therapies to treat abdominal and thoracic aortic aneurysms and peripheral vascular disease (PVD). The Company's products include endovascular stent graft systems, embolic protection systems, and stent systems for the treatment of narrowed iliac arteries. The products offered by the Company's Endovascular and Peripheral business include Endovascular Stent Grafts and Peripheral Vascular Intervention (PVI). The Structural Heart business offers a range of products and therapies to treat a variety of heart valve disorders. The Company's products include products for the repair and replacement of heart valves, perfusion systems, positioning and stabilization systems for beating heart revascularization surgery, and surgical ablation products. The Company's principal products offered by its Structural Heart business include Heart Valves, Transcatheter Heart Valves, Arrested Heart Surgery, Beating Heart Surgery and Surgical Ablation.

The Company competes with Abbott Laboratories, Boston Scientific, and Johnson & Johnson, Cook, Inc., W. L. Gore & Associates, Inc., Endologix, Inc., C.R. Bard, Inc., Edwards LifeSciences Corporation, St. Jude, Terumo Medical Corporation and Sorin Group.

Spinal

The Company's Spinal business develops, manufactures, and markets a range of medical devices and implants used in the treatment of the spine and musculoskeletal system. The Company's products and therapies treat a range of conditions affecting the spine, including degenerative disc disease, spinal deformity, spinal tumours, fractures ! of the sp! ine, and stenosis. The Company's Spinal business also provides biologic solutions for the dental and orthopedic markets. The Company's Spinal products are used in spinal fusion of both the thoracolumbar region, referring to the mid to lower vertebrae, as well as of the cervical region, or upper spine and neck vertebrae. Products used to treat spinal conditions include rods, pedicle screws, hooks, plates, and interbody devices, as well as biologics products, primarily bone growth substitutes including bone graft extenders and structural allografts such as dowels and wedges. The products offered by the Company's Spinal business include Thoracolumbar Products, Cervical Products and Biologics Products.

The Company competes with DePuy Spine, Inc., Synthes, Inc., Stryker Corporation, NuVasive, Inc., Globus Medical, Inc., Zimmer, Inc., Alphatec Spine, Inc., Orthofix International N.V., Biomet, Inc. and Johnson & Johnson.

Neuromodulation

The Company's Neuromodulation business develops, manufactures, and markets medical devices for the treatment of chronic pain, movement disorders, psychological disorders, and urological, fecal, and gastroenterological disorders. The l products offered by the Company's Neuromodulation business includes Neurostimulators for Chronic Pain, Implantable Drug Delivery Systems, Deep Brain Stimulation (DBS) Systems and Urology, Fecal, & Gastroenterology Devices. The Company's portfolio of products includes the RestoreSensor (rechargeable), with the Company's AdaptiveStim technology, as well as the RestoreULTRA (rechargeable), RestoreADVANCED (rechargeable), and PrimeADVANCED (non-rechargeable) neurostimulation systems. The SynchroMed II Programmable Infusion System delivers small quantities of drug directly into the intrathecal space surrounding the spinal cord. These devices are used to treat chronic, intractable pain and severe spasticity associated with cerebral palsy, multiple sclerosis, spinal cord and traumatic brain injuries, and stroke.

DBS uses a surgically implanted medical device, similar to a cardiac pacemaker, to deliver carefully controlled electrical stimulation to precisely targeted areas in the brain. The Company's family of Activa Neurostimulators for DBS includes Activa SC (single-channel primary cell), Activa PC (dual channel primary cell), and Activa RC (dual channel rechargeable). The Company's therapeutic portfolio for urology and gastroenterology includes the InterStim Therapy System, which treats the symptoms of overactive bladder, urinary retention, and chronic fecal incontinence, and the Enterra Therapy System for the treatment of chronic nausea and vomiting caused by gastroparesis of diabetic or idiopathic origin for drug refractory patients.

The Company's competes with Boston Scientific, St. Jude., Urologix, Inc. and Allergan.

Diabetes

The Company's Diabetes business develops, manufactures, and markets advanced, integrated diabetes management solutions that include insulin pump therapy, continuous glucose monitoring systems, and therapy management software. The products offered by the Company's Diabetes business includes Integrated Diabetes Management Solutions, Professional CGM and CareLink Therapy Management Software. Outside the United States, the Company offers its Paradigm Veo System, an integrated system that includes a Low Glucose Suspend feature that automatically suspends insulin delivery when glucose levels become too low. In the United States, the Company offers the Paradigm Revel System, which incorporates new CGM features, including predictive alerts that can give early warning to people with diabetes so they can take action to prevent dangerous high or low glucose events. Medtronic offers physicians a Professional CGM product called the iPro CGM and iPro2 Professional CGM. The Company offers Web-based therapy management software solutions, including CareLink Personal software for patients and CareLink Pro software, to helps patients and their health care prov! iders con! trol their diabetes.

The Company competes with DexCom, Inc., Insulet Corporation, Johnson & Johnson and Roche Ltd.

Surgical Technologies

The Company's Surgical Technologies business develops, manufactures, and markets products and therapies to treat diseases and conditions of the ear, nose, and throat (ENT) and certain neurological disorders. In addition, the business develops, manufactures, and markets image-guided surgery and intra-operative imaging systems that facilitate surgical planning during precision cranial, spinal, sinus, and orthopedic surgeries. The products offered by the Company's Surgical Technologies business includes ENT, Neurological Technologies, Navigation and Advanced Energy. The ENT products treat diseases and conditions, such as NIM Nerve Monitoring Systems, Fusion ENT Navigation System, Hydrodebrider Endoscopic Sinus Irrigation System, Meniett Device for Meniere's Disease, Pillar Procedure for Snoring and Sleep Apnea, and Repose System for Obstructive Sleep Apnea. The Neurological Technologies products treat certain neurological disorders and conditions, such as Midas Rex Spine Shaver, the Midas Rex MR7 Pneumatic Platform, the Midas Rex Legend EHS High Speed Surgical Drill, the Strata Family of Adjustable Valves for the treatment of Hydrocephalus, Duet External Drainage & Monitoring System, the IPC System, and the Subdural Evacuating Port System.

The Navigation products are used in cranial, spinal, sinus, and orthopedic surgeries, such as the StealthStation S7 Navigation and i7 Integrated Navigation Systems, the O-Arm 2D/3D Surgical Imaging System, and the PoleStar Surgical MRI System. The products make up the Advanced Energy business: PEAK Surgery System, a tissue dissection system that consists of the PEAK PlasmaBlade and the PULSAR Generator and is cleared for use in a variety of settings, including ENT, plastic reconstructive and general surgery; and the Aquamantys System, which uses patented Transcollation technology to ! provide h! aemostatic sealing of soft tissue and bone and is cleared for use in a range of surgical procedures, including orthopedic surgery, spine, solid organ resection and thoracic procedures.

The Company competes with Gyrus ACMI, Stryker Corporation, Johnson & Johnson, Integra LifeSciences Holdings Corporation, BrainLAB, Inc., GE Healthcare, Siemens Medical Solutions USA, Inc., Philips Medical Systems, Covidien and ArthroCare Corporation.

Advisors' Opinion:

[By James E. Brumley]
Just for the record, I'm not going to imply that BioRestorative Therapies, Inc. (OTCBB:BRTX) is poised to put companies like Medtronic (NYSE:MDT) or Stryker Corporation (NYSE:SYK). On the other hand, BioRestorative Therapies won't need to destroy Stryker Corporation or Medtronic to be rewarding for its shareholders. BRTX is only a $10 million company, and even the tiniest sliver of the spinal-related business that SYK or MDT are doing now could still be a windfall for shareholders of the up-and-coming organization.
[By Dan Carroll]
Cardiology device makers haven't had much good to report to investors lately. The entire medical device market has struggled with pricing pressures and other hurdles, but the headaches of heart devices -- from mature markets to Europe's financial crush -- have ramped up the pressure on industry firms such as Medtronic (NYSE: MDT ) .

Best Medical Companies To Invest In Right Now: Paradigm Medical Industries Inc (PDMI)

Paradigm Medical Industries, Inc., incorporated in October 1989, develops, manufactures, markets and sells ophthalmic diagnostic instrumentation and related accessories, including disposable products. The diagnostic products that the Company manufacturers, markets and sells consist of the P60 UBM Ultrasound Biomicroscope, two perimeters - the LD 400 and the TKS 5000, and the Blood Flow Analyzer. The diagnostic products that the Company markets and sells, which are manufactured by its Italian partner, Costruzione Strumenti Oftalmici srl (CSO), are the Paramax, corneal topographers - the Paravue 300 and the Surveyor 500, and the Paracam 1000. The P60 UBM Ultrasound biomicroscope is the third-generation of UBM devices. The CSO product to be distributed and sold by the Company is the Paramax. Other CSO products to be sold by the Company are the Paravue 300, a corneal topographer with the ability to display live images on a computer monitor; the Surveyor 500, a corneal topographer with a rotating Scheimpflug camera with placido disk, and the Paracam 1000, a specular microscope for endothelial cell evaluations.

Diagnostic Eye Care Products

The Company�� diagnostic eye care products include blood flow analyzer, dicon perimeters, P60 UBM ultrasound biomicroscopes, and Paramax and other products manufactured by Costruzione Strumenti Oftalmici srl. The blood flow analyzer device measures not only intraocular pressure but also pulsatile ocular blood flow, the reduction of which may cause nerve fiber bundle death through oxygen deprivation thus resulting in visual field loss associated with glaucoma. The Company's blood flow analyzer is a portable automated in-office system that presents a method for ocular blood flow testing for the ophthalmic and optometric practitioner. The device is a portable desktop system that utilizes an Air Membrane Applanation Probe (AMAP), which can be attached to any model of standard examination slit lamp, which is then placed on the cornea of the patient! 's eye to measure the intraocular pressure within the eye.

Dicon perimeters consist of the LD 400 and the TKS 5000, and software consisting of Field Lin FieldView and Advanced Field View. Perimeters are used to determine retinal sensitivity testing the visual pathway. Perimetry is reimbursable worldwide. The Dicon perimeters feature kinetic fixation and voice synthesis in 27 different languages. The LD 400FT, or Fast Threshold Autoperimeter, is the successor to the LD 400. The device is an autoperimeter used to measure patient visual fields. The LD 400FT is identical in hardware to the LD 400 but it uses new software to enable a threshold test. The P60 biomicroscope represents the third-generation of UBM devices. The Paramax is to be sold in North America on an exclusive basis. The Paramax performs tests for the early screening and follow up of pathologies, such as glaucoma, age related macular degeneration, vascular retinal degeneration, and other optic nerve diseases.

Surgical Products

The Company�� surgical products include Precisionist Thirty Thousand, Ocular Surgery Workstation and Photon Laser System. The Precisionist Thirty Thousand is the Company's core phaco surgical technology. As of December 31, 2009, the Precisionist is not manufactured by the Company. The system features a graphic color display and on board computer and graphic user interface linked to a soft key membrane panel for flexible programmable operation. The system provides real-time on-the-fly adjustment capabilities for each surgical parameter during the surgical procedure for high-volume applications. In addition, the Precisionist provides one hundred pre-programmable surgery setups, with a second level of subprogrammed custom modes within each major surgical screen (ultrasound phaco and

irrigation/aspiration modes).

The Ocular Surgery Workstation comprises the base system of the Precisionist

Thirty Thousand and is the first system, to the Company's knowledge,! which us! es the expansive capabilities of today's advanced computer technology to offer seamless open architecture expandability of the system hardware and software modules. The Workstation utilizes an embedded open architecture computer developed for the Company and controlled by a software system developed by the Company that interfaces with all components of the system. Ultrasound, fluidics (irrigation), aspiration, venting, coagulation and anterior vitrectomy (pneumatic) are all included in the base model.

The Photon laser cataract system is designed to be installed as a seamless plug-in upgrade or add-on to the Company's Precisionist' Ocular Surgery Workstation. The Photon laser utilizes the on board microprocessor computer of the Workstation to generate short pulse laser energy developed through the patented LCP to targeted cataract tissue inside the eye, while simultaneously irrigating the eye and aspirating the diseased cataract tissue from the eye. In addition to the cataract surgery equipment, the Company's surgical systems are designed to utilize accessory instruments and disposables. These include replacement ultrasound tips, sleeves, tubing sets and fluidics packs, instrument drapes and laser cataract probes. The Company focuses on expanding its disposable accessories as it penetrates the cataract surgery market and expands the treatment applications for its Workstation.

The Company competes with Sonomed, Tomey, Nidek, OTI and Quantel.

Best Medical Companies To Invest In Right Now: Dyadic International Inc (DYAI)

Dyadic International, Inc. (Dyadic), incorporated in September 2002, is a holding company. The Company is a global biotechnology company. The Company has operations at the United States and the Netherlands. Dyadic uses its technologies to conduct research and development (R&D) and commercial activities for the discovery, development, manufacture and sale of enzymes and proteins for the bioenergy, industrial enzyme, and biopharmaceutical industries. The Company derives all of its revenues from the licensing of its technologies, the sale of its enzymes and conducting research and development (R&D) activities for third parties. The Company operates in two segments: the United States operations and The Netherlands operations. The United States segment includes a subsidiary in Poland.

The United States operating segment is a developer, manufacturer and distributor of enzyme products, proteins, peptides and other bio-molecules derived from genes and a collaborative licensor of enabling technologies for the development and manufacturing of biological products and use in R&D. The Netherlands operating segment is also a researcher and developer of enzyme products, proteins, peptides and other bio-molecules derived from genes and, to date, has mainly invested in R&D activities.

Dyadic�� R&D activities focus on its fungal strains and associated technologies. Dyadic uses its Trichoderma and C1 fungal strains in the production of its industrial enzymes. Dyadic manufactures and sells liquid and dry enzyme products to global customers for use within the animal feed, pulp and paper, starch and alcohol, food and brewing, textiles, and biofuels industries.

Dyadic also utilizes a technology platform based on its patented and C1 fungus (the C1 Platform Technology), which enables the development and manufacture of proteins and enzymes for diverse market opportunities. The C1 Platform Technology can also be used to screen for the discovery of novel genes and proteins. The C1 Platf! orm Technology also has the potential of developing and producing other biological products such as antibodies, vaccines, proteins and polypeptides for the biopharmaceutical industry.

Sunday, December 29, 2013

The Apple of Everyone's Eyes

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All eyes, not just those from Wall Street, but from every facet of the financial industry, have been watching every movement of this company for quite some time, writes MoneyShow's Jim Jubak, also of Jubak's Picks, but yesterday, some of them blinked.

What a wild ride for Apple (AAPL) shares in after-hours trading after the company announced earnings yesterday after the market closed.

Shares spiked to $542 initially in after-hours trading on news that Apple had come in ahead of Wall Street estimates for earnings of $7.94 a share by 32 cents a share. (The shares closed the regular trading session at $529.88.) Revenue climbed to $37.47 billion, slightly ahead of the analyst consensus of $36.87 billion.

Then shares plunged, as traders and analysts fastened on what seemed to be a serious miss in guidance from the company for the December quarter. For the December quarter, Apple told Wall Street to expect revenue of $55 billion to 58 billion—the analyst consensus was $55.73 billion—and gross margins of 36.5%-37.5%, versus the Wall Street projection of 38%. On that, the stock dropped almost $40 a share to $503.

And then, still in after hours trading, the stock rallied back to $529.93 a share, when, in the company's conference call, chief financial officer Peter Oppenheimer explained that the lower gross margin and the possibly disappointing revenue number were the result of the company deferring $900 million in revenue from the December quarter to future quarters. As the company gets more of its revenue from software—iTunes showed $4.4 billion in billings in the quarter, for example—Apple will, as is typical for software companies such as Microsoft (MSFT), defer more revenue in order to match up the timing of revenue recognition to the date when revenue for software is earned. That deferral, plus higher cost structures for the MacBook Pro and iMac, resulted in guidance for lower gross margins. However, if you factor out the effects of deferring revenue from software, which is a high margin product, gross margins in December will be in line with September quarter margins.

I think Wall Street reacted so strongly to a disappointment, that turned out to be (mostly) an accounting issue, because Wall Street was looking for Apple to disappoint. The market had been awash in rumors before the earnings report of production shortfalls that would limit sales of the iPhone 5S in the December quarter. It was looking for margins to fall on higher costs in new products—so that what looked like falling margins fit the story.

The quarter didn't put all the questions about Apple to rest. Yes, iPhone sales picked up to 33.8 million units (ahead of the analyst estimate of 32 million), but Apple still has to score an amazing fourth quarter for iPhones and the new iPads to meet expectations. Investors still expect the company to introduce a new blockbuster product—and soon. The company has been losing market share to Android phones and tablets in general, and Samsung in particular; investors want to see Apple claw back some of that share with its new product updates.

The quarter reported yesterday was a good quarter. But it's still the December quarter that will make or break Apple's share performance for the year.

Full disclosure: I don't own shares of any of the companies mentioned in this post in my personal portfolio. When in 2010 I started the mutual fund I manage, Jubak Global Equity Fund, I liquidated all my individual stock holdings and put the money into the fund. The fund may or may not now own positions in any stock mentioned in this post. The fund did own shares of Apple as of the end of June. For a full list of the stocks in the fund as of the end of June see the fund's portfolio here. For more of Jim's posts and picks, check out his free site or his subscription site.

Saturday, December 28, 2013

David Einhorn Comments on Chipotle Mexican Grill

But even in conventionally valued stocks where the fundamentals have largely gone our way, it has been hard to make money on shorts. In many cases we've lost money. Let's consider Chipotle Mexican Grill (CMG). In recent years through the end of 2011, CMG and other upstarts in the fast-casual restaurant segment achieved substantial growth by offering consumers a higher quality menu than is typically found in fast-food chains. In contrast, Taco Bell (the largest Mexican fast-food chain) had lackluster and often negative growth. In early 2012, Taco Bell expanded its offerings to include new gourmet-style dishes as part of its Cantina Bell menu and introduced Doritos Locos Tacos. We believed that these innovations would enable Taco Bell to recapture market share from CMG. This is exactly what happened:

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Notably, CMG's comparable store sales benefit by about 2.5% per year because the company has a large number of new stores entering the comp base each year, which naturally ramp their volumes. Since Taco Bell has a mature store base, its comparable store sales don't share that tailwind.

When we presented our thesis that Taco Bell would gain share, we received widespread ridicule from CMG's customers in the investment community. But CMG also serves a younger demographic who are likely to be more sensitive to food prices than stock prices. It seems like Taco Bell has, in fact, gained share from this group.We surmise that this has led CMG to reconsider its strategy. In January 2013, the company strongly hinted that it would raise prices this year. Historically, CMG had been able to raise prices with impunity. However, with comparable store sales running in the low single digits, management decided to postpone the increase until 2014, when they plan to raise prices in conjunction with announcing that all their food is GMO-free. We believe that comp! etition, particularly for college aged patrons, has reduced CMG's ability to raise prices without losing customers and, based on its actions, it appears management agrees.

The result of all of this is that CMG is now expected to earn less in both 2013 and 2014 than consensus believed prior to Taco Bell's innovations. Unfortunately for us, the market has rewarded CMG with an expanded P/E multiple, which is quite surprising in the face of falling comparable store sales, slowing and disappointing earnings growth, and a loss of pricing power.Such is the nature of the current market environment. Muy Loco!

From David Einhorn's Greenlight Capital third quarter 2013 letter.

Friday, December 27, 2013

5 Hated Stocks Ready to Pop in 2014

BALTIMORE (Stockpickr) -- Everything's hunky-dory over in the market right now. The S&P 500 has extended its year-to-date gains to more than 28%, consumer sentiment numbers are the highest they've been in months, and investors are feeling good again about the New Year.

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But that doesn't mean that investors are bullish on everything right now. In fact, there's a long list of stocks they hate.

Hate is a powerful emotion in the markets. It's powerful because, more often than not, it's wrong. The fact is, the stocks that investors want to give coal to this Christmas are really the ones that could hand over the most gains in 2014. I realize that sounds anti-intuitive, but historically, buying Wall Street's hate list has paid off.

Over the last decade, buying the most hated and heavily shorted large and mid-cap stocks (the top two quartiles of all shortable stocks by market capitalization) would have beaten the S&P 500 by 9.28% each and every year. That's some material outperformance during a decade when decent returns were very hard to come by.

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When I say that investors "hate" a stock, I'm talking about its short interest. A stock with a high level of shorting indicates that there are a lot of people willing to bet on a decline in its share price – and not many willing to buy. Too much hate can spur a short squeeze, a buying frenzy that's triggered by shorts who need to cover their losing bets. And with the rally we've been since last November, you can probably guess that there are lots of losing open short bets.

One of the best indicators of just how high a short-squeezed stock could go is the short interest ratio, which estimates the number of days it would take for short-sellers to cover their positions. The higher the short ratio, the higher the potential profits when the shorts get squeezed.

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It's worth noting, though, that market cap matters a lot. Short sellers tend to be right about smaller names, with micro-caps delivering negative returns when the same method was used.

Today, we'll replicate the most lucrative side of this strategy with a look at five big-name stocks that short sellers are piled into right now. These stocks could be prime candidates for a short squeeze in the months ahead.

Sysco

Food service giant Sysco (SYY) may not be a household name, but there's a good chance that you're very familiar with the company's wares. That's because Sysco makes the food served at more than 400,000 restaurants, hotels and institutional dining facilities around the globe. If you've dined out recently, there's a good chance that Sysco stocks the kitchen.

That hasn't stopped short sellers from unloading this name en masse. Sysco currently sports a short interest ratio of 17.67.

Sysco's status as the biggest food service distributor in North America comes with some big size advantages. Food distribution is all about the tradeoff between cost and quality -- too pricey and restaurants can't afford to stock their kitchens, too low-quality and restaurants lose with patrons. Sysco's size enables it to strike the balance very well with a more effective supply chain than smaller peers.

Those smaller peers are quite a bit smaller -- Sysco is five times the size of its next biggest competitor. The firm has achieved that footprint through a growth-by-acquisition strategy, buying its way into new markets that it didn't already have a foothold in. That's been an effective strategy, but it's running its course.

The biggest tailwinds come from organic growth in Sysco at this point; as restaurant sales continue to tick higher into 2014, short sellers look likely to lose their battle.

Host Hotels and Resorts

Host Hotels and Resorts (HST) is a hotel REIT that owns 118 hotels across the world – totaling more than luxury 62,000 hotel rooms in all. While it's easy to think of Host primarily as a conventional hotelier, the firm's REIT status also makes it a direct income play that's obligated to pay out the vast majority of its earnings out to shareholders in the form of dividends. And dividends are like kryptonite to short sellers.

At last count, Host's short interest ratio of 11.14 means that it would take more than two weeks of buying pressure for short sellers to exit their bets.

Host's properties skew heavily in the upscale and luxury segments, a portion of the hotel business that's (perhaps surprisingly) been a whole lot susceptible to down-swings in the wake of the Great Recession. As margins on the luxury side of the business remain strong, Host has been able to recover from the challenges of a leveraged balance sheet. The hotel ownership business is typically less attractive than management, which is service-driven and lacks the capital-intensity that owning the hotels requires; that said, our current low interest rate environment is well-suited to profitability for Host, and it isn't showing signs of abating.

Even though Host's model doesn't court the same kind of REIT investors that pile into commercial landlords, the structure has proven sensible for shareholders, particularly as the properties that HST owns continue to appreciate. Earnings on Feb. 17 could be a big catalyst in the near-term.

Under Armour

2013 has been a blockbuster year for Under Armour (UA). Shares of the $9 billion athletic apparel brand have rallied 78% since the calendar flipped over to January, besting the S&P's impressive climb by a factor of three. Still, that momentum hasn't scares off the shorts -- it's only made them more eager to bet on a crash in UA. As I write, Under Armour sports a short interest ratio of 10.99.

UA started off making niche apparel for hardcore athletes, but it's emerged as one of the most exciting mainstream brands out there. That brand strength has been one of the keys that's helped Under Armour hold its own against the likes of incumbents such as Nike (NKE). The firm's extension in to new categories like footwear about five years ago should continue to drive top-line growth and premium dollars from consumers who see Under Armour as a performance brand.

UA has invested wisely in endorsement costs, opting to partner with younger athletes early in their careers, and courting collegiate sports. Hunting apparel has big a big growth segment for UA, one that conventional sports apparel makers have generally missed out on. As consumer spending continues to warm, UA should continue to get a bigger piece of the sports apparel pie. That's especially true as the firm expands its reach overseas where the Nikes and Reeboks of the world earn most of their revenues.

This is one serious momentum stock right now -- and that makes it a prime short squeeze candidate.

McCormick

At first glance, the spice business may not seem particularly exciting. But McCormick (MKC) proves that's not necessarily so. McCormick is the world's biggest manufacturer and distributor of spices, extracts and seasonings. That focus may be relatively narrow, but it gives McCormick serious command of your grocer's spice aisle. The firm's leading brands include Old Bay, Zatarain's and Thai Kitchen in addition to the McCormick label.

McCormick's reach goes beyond grocery -- it also serves restaurant chains and packaged food firms that use its seasonings in their respective products. Because few firms can boast MKC's operational expertise with spices, it's a go-to firm for clients who need help developing and mass-producing the seasonings they use in large-scale food manufacturing. Some of McCormick's most exciting tailwinds come from emerging markets, where consumers aren't strangers to spices but may be less familiar with the convenience of pre-packaged seasonings. If MKC can extend its margins into developing countries, shareholders stand to benefit.

Shareholder benefits are nothing new for this stock. The firm has paid out a dividend in each of the last 85 straight years, an impressive streak that's spanned both booms and busts. That dedication to shareholder value makes the 11.66 short interest ratio on this stock look overdone. Keep an eye out for Jan. 27 earnings as a potential catalyst.

Brown-Forman

Even if you don't know the name Brown-Forman (BF.B), you're probably familiar with some of the products this 142-year-old spirits distiller makes. The firm's portfolio includes Jack Daniel's, Finlandia vodka, Southern Comfort and Korbel champagne.

Right now, shares sport a short interest ratio of 12.47. At currently levels, it would take two and a half weeks for short sellers to cover their bets.

The liquor business is attractive for a variety of reasons. The first is industry-wide growth. Consumers are evolving their palates, and in turn, they're increasing their willingness to spend big on pricier small-batch spirits. That presents a huge opportunity for BF.B, one that the firm has taken advantage of with "sub-labels" of its extremely popular brands, such as Jack Daniel's Single Barrel. Those brands hold the keys to Brown-Forman's success. Buyers tend to be sticky when it comes to their liquor of choice, which means that price sensitivity isn't as much of a concern for Brown-Forman as it is for liquor sellers. The popularity of whiskey in particular in the last few years has been a big boon to BF.B considering the Jack Daniels marque makes up around half of the firm's total sales volume.

Like many so-called "sin stocks," Brown-Forman generates considerable cash. Around 25 cents on every dollar the firm takes in gets converted into profit, a hefty net margin for any business. Because of the size of the Jack Daniel's brand, this stock has historically been less internationally-exposed than many of its big spirit-producer peers. That leaves a lot of upside room as American whiskey gains popularity in markets like Russia and China.

To see these short squeezes in action, check out this week's Short Squeezes portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

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At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

Thursday, December 26, 2013

Can Amazon Keep Meeting Its High Expectations?

With shares of Amazon (NASDAQ:AMZN) trading around $403, is AMZN an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Amazon serves its customers through its retail websites and focus on selection, price, and convenience. The company also manufactures and sells Kindle devices. Amazon offers programs that enable sellers to sell their products on the company's websites, including the sellers' own branded websites, and fulfill orders through them. Amazon also provides platforms that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. Online commerce has been on the rise because of the convenience, efficiency, and relatively low prices offered.

It was a lucrative holiday shopping season for Amazon.com, but the e-commerce giant still left some shoppers disgruntled after Santa Claus failed to show up on time. According to Bloomberg, despite Amazon's promise that all of its ordered packages would be delivered by Christmas, some shoppers still suffered empty doorsteps on the eve of the big day, and now the largest online retailer is working to make it up to them. For those affected by Amazon's inability to deliver packages the time, the Seattle, Washington-based retailer offered customers $20 gift cards and refunds on shipping charges — along with a promise that it would never happen again. Amazon doesn't take full responsibility for the shipping shortcomings, as it cites failures in the United Parcel Service's (NYSE:UPS) transportation network in addition to its onslaught of last-minute orders, but the company issued gift cards to compensate customers nonetheless, and promised to look into UPS difficulties.

T = Technicals on the Stock Chart Are Strong

Amazon stock has been exploding to the upside in the last several years. The stock is currently trading near all time highs and looks set to continue. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Amazon is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

AMZN

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Amazon options	32.99%	96%	93%

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

	Put IV Skew	Call IV Skew
January Options	Flat	Average
February Options	Flat	Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	-85.00%	-150.00%	-35.71%	-43.66%
Revenue Growth (Y-O-Y)	19.23%	22.36%	21.88%	22.01%
Earnings Reaction	9.38%	2.83%	-7.24%	4.76%

Amazon has seen decreasing earnings and increasing revenue figures over the last four quarters. From these numbers, the markets have been pleased with Amazon’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Amazon stock done relative to its peers, eBay (NASDAQ:EBAY), Barnes & Noble (NYSE:BKS), Overstock (NASDAQ:OSTK), and sector?

Amazon

eBay

Barnes & Noble

Overstock

Sector

Year-to-Date Return

56.12%

5.84%

Best Small Cap Stocks To Own For 2014

-0.60%

120.10%

46.36%

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

Conclusion

Amazon is one of the largest Internet commerce companies in the world, and it aims to serve the needs of consumers, companies, and entrepreneurs around the globe. The company promised that all of its ordered packages would be delivered by Christmas, some shoppers still suffered empty doorsteps on the eve of the big day, and now the largest online retailer is working to make it up to them. The stock has been flying higher in recent years and is currently trading near all time highs. Over the last four quarters, earnings have been decreasing while revenues have been increasing, which has generally pleased investors in the company. Relative to its peers and sector, Amazon has been a relative performance leader year-to-date performer. Look for Amazon to OUTPERFORM.

Monday, December 23, 2013

Chart Says This Chip Stock is a Buy

Popular Posts: Top 6 Stocks to Buy for October6 Stocks to Sell in OctoberPut This Stock at the Top of Your Bargain-Hunting Watch List Recent Posts: Chances of a Major Breakdown Increase Every Day Politicians Stall Chart Says This Chip Stock is a Buy Market Vulnerable to a Sharp Reversal View All Posts

Top 10 Medical Stocks To Watch For 2014

Lam Research (LRCX) — This is one of the leading manufacturers of etch products, used to etch away portions of films to create integrated circuits (IC).

This large-cap chip company is expected to see sales increase 22% in fiscal 2014, ended in June, helped by the acquisition of Novellus. And analysts look for another 7% increase in fiscal 2015. Earnings are estimated at $3.83 per share in fiscal 2014 and $4.48 in fiscal 2015.

Last week, LRCX broke from a quadruple-top at $51 on a sharp volume spike. The trading target is $57, but investors could also buy LRCX for long-term appreciation.

LRCX Chart
Click to Enlarge

Chart Key

Sunday, December 22, 2013

At Work: Creative thinking gets cramped

"That's so cool that you get to sit there all day and be creative."

If you're a professional "creative," you've likely heard that phrase a thousand times. And it makes you want to scream, "It's hardly like that" — especially these days.

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In these times of quarter-to-quarter thinking, reduced budgets and the expectation to "jazz it up," "make it go viral" or "make a logo out of an eagle carrying a vacuum cleaner," the creative industry has grown, well, not so creative.

Many people clamor to get into this line of work, but now 1 in 4 are thinking of quitting.

Take a look at what folks in the industry in the United States and United Kingdom had to say in a new study titled Free the Creative conducted by Getty Images' iStock with KRC Research. The study surveyed more than 400 "creatives" — workers ages 18 to 64 who labor in design or visual arts, production and direction, photography, publishing and advertising or marketing.

The conclusion: The people whose jobs are to be creative are struggling in an increasingly stressful work environment.

Their creativity is under threat from three main barriers: too many responsibilities, lack of time and lack of money.

People in creative fields are told to "think outside the box" but often not given the time to do so.(Photo: Stockbyte, Getty Images)

As a result, nearly one quarter say they spend less than two hours of their day doing "creative work."

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The majority — 60% — said they have had great ideas! in the past year but not enough time or support at work to achieve what they wanted.

The biggest challenge to working in a creative job is staying inspired. Nearly 70% said they want more creative time and 63% said they do not have the time they need for creative reflection and inspiration.

Time constraints make these workers feel stuck in a rut because they have too many competing priorities to just sit and think. Another insight: If these workers feel under the gun, they are less likely than others to take creative risks.

"People spout the mantra, 'Think outside the box.' But doing that, then executing on things outside the box, create risk," a creative director at an advertising agency told me. "And clients and executives don't want to take risks anymore.

"There is no time for creativity, exploring ideas and their consequences in this economy," he said. "Whatever short-term idea can get a business to the next short-term objective reigns."

Technological advances can be good and bad.

“People spout the mantra, 'Think outside the box.' ... (But) clients and executives don't want to take risks anymore.”

— Ad agency creative director

"(It) creates more short-term opportunities because it allows us to turn things out overnight," he said. "With that, clients think they can delay decisions until the last minute or that we can just create breakthrough ideas in an hour."

"Truly breakthrough ideas rarely hatch overnight," say the authors of a Harvard Business Review article titled Creativity Under the Gun.

"You may use pressure as a management technique, believing that it will spur people on to great leaps of insight," they say. But is that the best approach? Short answer: no.

"When creativity is under the gun, it usually ends up getting killed." Sure, "time pressure may drive people to work more and get more done, and may even make them feel more creative." But they generally end up thinking less creatively.

The iStock s! urvey als! o showed that creative thoughts and ideas are born mostly outside the office as people travel to work, take a shower, exercise, listen to music, watch TV or read magazines.

Most of these professionals seek creative channels outside of work in photography, writing or art. Just think of all the creative juice that could come to life if they were free to create at work.

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A survey of 400 professionals in creative fields, commissioned by iStock photos, found a lot of frustrations. (Source: iStock by Getty Images)

Career consultant Andrea Kay is the author of This Is How To Get Your Next Job: An Inside Look at What Employers Really Want. Reach her at andrea@andreakay.com. Twitter: @AndreaKayCareer.

Saturday, December 21, 2013

Video: Joseph Stiglitz on Poverty

I recently sat down with Nobel Prize-winning economist Joseph Stiglitz in his office at Columbia Business School.

In this clip, Stiglitz discusses why he worries about poverty in America. Have a look. (A transcript follows.)

Joseph Stiglitz: I really do worry about poverty, and especially poverty traps where you have one generation after another, and that has to do with a lack of upward mobility. I think we have to focus on the middle class. The fact is the middle right now hasn't been doing very well. A full-time male worker, median, in the middle, half above, half below, has an income lower than it was 40 years ago. Now an economic system that doesn't deliver any progress to the typical worker is not working the way it should. So that's a real problem to me.

Now it's also the case that we have a problem at the top. Now as I said before, I don't begrudge anybody that discovers, makes an important discovery, makes an important innovation. He gets a high income, that's fine. What I do object to is rent-seeking. I do object to people making money by exploiting the poor by using monopoly power, by taking advantage of deficiencies in corporate governance, by financial manipulation. Those are things that make our economy weaker, and a major, major source of inequality.

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I also object to people who get wealthy by using their political influence to get government to pay more for the goods that they sell to government, like the provision that we passed in the Medicare Part D law that said that the government couldn't bargain with the drug companies.

I do object to the government giving away natural resources at below competitive market prices. That gives rise to some of the mining companies getting lots of riches at the expense of the American taxpayer. So those ways of creating inequality, we are all paying a high price for those.

Friday, December 20, 2013

Short-Selling Grinch Thinks China's Banking Problems Create Short Opportunities Outside the Country

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Jim Chanos says that there is a bit of a banking crisis happening right now in China with rates skyrocketing.

Chanos notes that every 3 to 6 months another problem with the banking system in China pops up.

He thinks that the credit led investment boom driven by China is in jeopardy because of these banking problems. That creates opportunity for him to short companies like Caterpillar that require spending from China.

He also thinks investors should avoid hard industrial commodities.

About the author:

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Wednesday, December 18, 2013

3 Stocks Under $10 Moving Higher

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

>>5 Stocks Ready to Break Out

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

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

>>5 Hated Earnings Stocks You Should Love

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

BioScrip

BioScrip (BIOS) provides home infusion and other home care services, and pharmacy benefit management services in the U.S. This stock closed up 8.8% to $7.12 in Tuesday's trading session.

Tuesday's Range: $6.48-$7.45

52-Week Range: $5.61-$17.62

Tuesday's Volume: 3.73 million

Three-Month Average Volume: 1.80 million

From a technical perspective, BIOS ripped sharply higher here back above its 50-day moving average of $6.89 with monster upside volume. This move bravely pushed shares of BIOS into breakout territory, since the stock flirted with some near-term overhead resistance at $7.42. This stock closed just below that breakout level at $7.12. Market players should now look for a continuation move higher in the short-term if BIOS manages to take out Tuesday's high of $7.45 with high volume.

Traders should now look for long-biased trades in BIOS as long as it's trending above its 50-day at $6.89 or above Tuesday's low of $6.48 and then once it sustains a move or close above $7.45 with volume that's near or above 1.80 million shares. If we get that move soon, then BIOS will set up to re-test or possibly take out its next major overhead resistance levels at $8 to $8.53. Any high-volume move above those levels will then give BIOS a chance to tag $9.

China Auto Logistic

China Auto Logistic (CALI) is engaged in providing imported automobile sales and trading services and Web-based automobile trading sales and information platform to its customers. This stock closed up 4.6% to $4.08 in Tuesday's trading session.

Tuesday's Range: $3.85-$4.32

52-Week Range: $1.91-$6.89

Tuesday's Volume: 112,000

Three-Month Average Volume: 156,003

From a technical perspective, CALI spiked sharply higher here right above some near-term support at $3.74 with lighter-than-average volume. This move briefly pushed shares of CALI into breakout territory, since the stock flirted with some near-term overhead resistance at $4.25. Shares of CALI closed just below that level at $4.08, after hitting an intraday high of $4.32. Market players should now look for a continuation move higher in the short-term if shares of CALI manage to take out Tuesday's high of $4.32 to some more near-term resistance at $4.50 with high volume.

Traders should now look for long-biased trades in CALI as long as it's trending above some near-term support levels at $3.74 or at $3.50 and then once it sustains a move or close above $4.32 to $4.50 with volume that hits near or above 156,003 shares. If we get that move soon, then CALI could easily tag $5 to $6.

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Document Security Systems

Document Security Systems (DSS) is engaged in fraud and counterfeit protection for all forms of printed documents and digital information. This stock closed up 8.7% to $2 in Tuesday's trading session.

Tuesday's Range: $1.84-$2.00

52-Week Range: $0.86-$3.64

Thursday's Volume: 933,000

Three-Month Average Volume: 898,519

From a technical perspective, DSS trended sharply higher here right off its 200-day moving average of $1.88 with above-average volume. This move is quickly pushing shares of DSS within range of triggering a major breakout trade. That trade will hit if DSS manages to take out Tuesday's high of $2 to some more near-term overhead resistance levels at $2.11 to $2.30 with high volume.

Traders should now look for long-biased trades in DSS as long as it's trending above Tuesday's low of $1.84 or above some more near-term support at $1.73 and then once it sustains a move or close above those breakout levels with volume that hits near or above 898,519 shares. If that breakout hits soon, then DSS will set up to re-test or possibly take out its next major overhead resistance levels at $3 to $3.20. Any high-volume move above those levels will then give DSS a chance to tag its 52-week high at $3.64.

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

-- Written by Roberto Pedone in Delafield, Wis.

Tuesday, December 17, 2013

Palatin Technologies Close to Being Catapulted (PTN)

At first glance, Palatin Technologies, Inc. (NYSEMKT:PTN) doesn't look like anything particularly special, nor anything particularly investment-worthy. The longer you study the chart of PTN, however, the clearer it becomes... this stock is on the verge of breaking out, and should be on most traders' watchlists.

The name doesn't necessarily suggest it, but Palatin Technologies is actually a biopharma stock. It's got nothing on the market right now, though the PTN pipeline is relatively full. The big kahuna the company is working on is a female sexual-dysfunction drug, currently ready to begin Phase 3 trials. It's got four more drugs in the works too... well, three more drugs taking aim at four more illnesses. Two are in Phase 1 testing, and two more are in preclinical phases. All in all, it's not a bad pipeline for a company of this size, age, and ilk.

The details are relatively inconsequential to anyone who's been following the Palatin Technologies, Inc. saga so far, however. The reason the story got real interesting real quick has everything to do with the chart today, yet nothing to do with any news. In fact, there hasn't been any news from, or even about, PTN in days. That's what makes today's strength even more compelling.

The weekly chart below tells the story as well as any words could. Since early 2012, Palatin Technologies has been in a sideways mode, ending a downtrend that lasted all the way through 2011. With just a quick look, the stock doesn't look it's done anything other that move sideways. When you lay down the horizontal lines, however, you can see we've actually been chipping away at higher highs and higher lows. Fast forward to today. PTN poked through a ceiling at $0.75, and even took a shot at hurdling $0.80. Indeed, the stock hit a high of $0.83 before pulling back to $0.77. The cat's out of the bag though... the bulls have tipped their hand.

Top 5 Growth Stocks For 2014

It's still a little premature to jump on the bandwagon, but it's not too soon to start thinking about it. If Palatin Technologies can make a close above $0.80 - and bear in mind it might take a few days for that move to materialize - that should yank the stock out of a sideways rut and kick-start a new uptrend. After two years of consolidation, the pump is primed.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter.

Monday, December 16, 2013

Is Monster Worldwide Destined for Greatness?

Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does Monster Worldwide (NYSE: MWW ) fit the bill? Let's look at what its recent results tell us about its potential for future gains.

What we're looking for
The graphs you're about to see tell Monster's story, and we'll be grading the quality of that story in several ways:

Growth: Are profits, margins, and free cash flow all increasing? Valuation: Is share price growing in line with earnings per share? Opportunities: Is return on equity increasing while debt to equity declines? Dividends: Are dividends consistently growing in a sustainable way?

What the numbers tell you
Now, let's look at Monster's key statistics:

MWW Total Return Price Chart

MWW Total Return Price data by YCharts

Passing Criteria

3-Year* Change

Grade

Revenue growth > 30%	(6%)	Fail
Improving profit margin	(62.3%)	Fail
Free cash flow growth > Net income growth	93.7% vs. (52.7%)	Pass
Improving EPS	(66%)	Fail
Stock growth (+ 15%) < EPS growth	(58.5%) vs. (66%)	Fail

Source: YCharts.
*Period begins at end of Q3 2010.

MWW Return on Equity (TTM) Chart

MWW Return on Equity (TTM) data by YCharts

Passing Criteria

3-Year* Change

Grade

Improving return on equity	(96.2%)	Fail
Declining debt to equity	90.2%	Fail

Source: YCharts.
*Period begins at end of Q3 2010.

How we got here and where we're going
Things don't look good at all for Monster in its second assessment too, as this online job repository has mustered only one out of seven possible passing grades. This seems ugly, but it's actually an improvement over the zero-for-seven score Monster earned last year. Monster has shed nearly two-thirds of its value over the past three years, and has been looking to sell its businesses in the middle of a major shift in the way job hunters seek and are sought for new opportunities online. Can Monster find ways to create value for any prospective bidder? Can it turn itself around without losing much of what made it successful in the process? Let's dig a little deeper to find out.

The growing significance of social networking based employment solutions, combined with an odd dichotomy of high unemployment rates but low hiring interest in the U.S. several years after the end of a recession, have been major hindrances to Monster's growth in this new economy. Fool contributor Dan Caplinger notes that LinkedIn (NYSE: LNKD ) and Facebook (NASDAQ: FB ) have done an outstanding job of creating employment opportunities through social networking, which has undermined Monster's presence in online recruiting services. LinkedIn has created an extensive economic moat by expanding into corporate enterprise and relationship management, while pushing its premium offerings for business professionals. Facebook's relatively new jobs app could yet emerge as a potential threat for LinkedIn and Monster simply because of the staggering size of its user base, which is now thought to be more than 1.2 billion active users. Fool contributor Tim Brugger also notes that privately held RelSci's Relationship Science professional networking service could emerge from nowhere to become the next potential challenge in the business social media space.

On the other hand, Monster's completed its corporate restructuring, which will allow it to cut operating costs by more than $130 million each year. The company also recently divested its 49.9% minority stake in South Korea's JobKorea to a private equity firm in a deal worth $90 million. Monster also expanded its joint partnership with Alma Media, which will help it seize more market share in Eastern Europe and the Baltic region. Fool analyst Evan Niu points out that Monster has been looking to sell itself, but it also reassured investors with a $200 million share buyback program as a fallback, should the company fail to find a buyer. With shares trading at less than 0.7 times sales and 13 times forward earnings, Monster appears to be a relatively cheaper way to break into the recruitment and career space, but compared to the higher valuations of social-media competitors, it looks a bit like a value trap.

Putting the pieces together
Today, Monster Worldwide has few of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy -- or to stay away from a stock that's going nowhere.

Looking for an under-the-radar opportunity?
The market stormed out to huge gains across 2013, leaving investors on the sidelines burned. However, opportunistic investors can still find huge winners. The Motley Fool's chief investment officer has just hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2014." To find out which stock it is and read our in-depth report, simply click here. It's free!