Friday, February 21, 2014

A Trade To Remember For Your Calendar: Straddling The Ags Reports Using Nadex Spreads

On January 10, the USDA (United States Department of Agriculture) released the WASDE report and the Crop Production Annual Summary at 12:00 PM ET. When this report is, released you usually see a massive move in the ags markets, like corn and soybeans.  To be directional during this time is extremely dangerous, as the moves can be massive. As a trader, you could have decided not to take a direction on this report. Instead, you could have used a unique variable payout contract called a Nadex Spread. You could buy the upper spread and sell the lower spread to do a straddle. Some traders know about Nadex binaries, but they do not know they have a unique contract called Nadex Spreads.
You can use Nadex spreads to be directional, straddle the market on news reports, or even hege risk on futures and forex contracts with capped risk and massive leverage without any stops. Nadex Spreads Are Simple Instruments With Capped Risk: With a Nadex spread, there is a floor and a ceiling. You may buy or sell the spread. In all cases, your risk is capped and cannot increase and you cannot be stopped out of a trade (think call/put options), except with one day or less until expiration every single day of the business week.
You still obtain the massive leverage more often than a futures or forex contract and much more leverage than than stock margin (even better than day trading margin). The best part is you get access to this leverage without having the risk of ever receiving a margin call, since risk is capped and the full risk is put for magin up front. You can enter and exit before expiration.

Related: A Review Of The Successful Strangle On The U.S. Unemployment and NFP Report Using Nadex Binaries

Profit/Loss Value (Tick/Pip) on Nadex Spreads Are Easy: On all spreads, every tick/pip is worth $1.00. A 1 tick move is worth a $1.00 increase or decrease in the spread. This is great, as if you have ever traded futures or forex, you know the challenges that come with tick size and value. So you don't have to worry about quarters and 1/8ths of cents on futures and fx pip conversion etc. NOTE: (A tick/pip is the minimum increment move that the contract bid/ask is quoted in, like on a stock quoted in cents and the minimum increment move is 1 cent). Risk/Reward Of Nadex Spreads: If you buy a spread, your risk is capped at the floor and the amount of risk is the difference between where you buy and the floor. If you sell a spread, your risk is capped at the ceiling and the amount of risk is the difference between the ceiling and where you sell.
If you buy a spread, your risk is capped at the ceiling (like a vertical spread on options). If you sell a Nadex spread, your profit is capped at the floor. Your profit or loss is determined by the difference between where you buy to enter and sell to exit, or where you sell to exit and buy to enter. Note the market does not have to expire in between the spreads floor and ceiling. If the spread expires above the ceiling on a buy, you obtain maximum profit. If it expires below the floor on a sold contract, you obtain maximum profit. As a review of the corn straddle trade on January 10, 2014 see the spread charts and the chart of corn ZC 03-14 aka ZCH4 below. With this trade you could have both: Bought the Corn 410.0-430.0 (2:15 PM ET) Expiration contract for 412.4
The risk on the trade was $24 [412.4 (bought price) - 410.0 (bought spread floor) = 2.4 / .1 (tick size) = 24 ticks = $24 max risk] The profit potential of the trade was [430.0-412.4 = 17.6 / .1 (tick size) = 176 ticks = $176 profit potential]  And Sold the Corn 390-410 (2:15 PM ET) Expiration contract for 407.4 The risk on the trade was $24 [407.4 (sold price) - 410.0 (sold spread ceiling) = 2.6 / .1 (tick size) = 24 ticks = $26 max risk] The profit potential of the trade was [407.4 - 390.0 = 17.4 / .1 (tick size) = 174 ticks = $174 profit potential] The Result: As you can see, the bought spread flew up and through the ceiling, expiring at 2:15 at max profit of $176 per contract. The sold spread drifted down some and became worthless, losing the max $26 and stopped quoting as it was out of the money. Returning you a profit of $150 on a $50 max risk, with no stop loss for a 300 percent return within 2 hours and 15 minutes.

Thursday, February 20, 2014

Caterpillar: How Much Higher Can It Go?

After a dismal 2013, Caterpillar (CAT) has found some love so far this year.

AFP

Caterpillar’s shares have gained 6.6% in 2014, double its 2013 gain of 3.3%, and besting the 7.7% drop in Deere (DE), the 0.4% rise in Terex (TEX), the 0.3% dip in Cummins (CMI) and the 4.5% decline in Joy Global (JOY).

Can the good times continue? Deutsche Bank’s Vishal Shah thinks they can. He explain:

We have a positive bias towards CAT as we believe investors are overly focused on the decline in resource industries revenue, which will likely trough earlier than expected in 2014, and are neglecting the significant growth opportunities within construction segment over the next 3-4 years as well as consistent execution within the power systems segment. Although we expect mining capex to decline by 55% from 2012 peak and trough in 2016-17, we believe the decline in Resource industries revenue will be smaller (down 45%) and shorter (ending in 2014). We expect the aftermarket business (25% of segment revenue) to mitigate some of the downside risk. We also expect CAT to be among the first construction equipment companies to benefit from the non-resi recovery and expect dealers to start building inventory as early as 2014.

Top 5 Chemical Stocks To Invest In 2015

It shouldn’t come as a surprise, then, that Shah thinks Caterpillar is going higher–much higher. He initiated Caterpillar as a Buy with a $122 price target, 25% above its current price.

Cummins and Deere, meanwhile, get Buy ratings, with price targets of $170 and $110, respectively. Buy-rate Terex could hit $52, while Hold-rated Joy Global has a price target of $57.

Shares of Caterpillar have gained 1.1% to $97.25, while Deere has advanced 1% to $85.15, Terex has jumped 2.5% to $43.19, Cummins has risen 0.8% to $141.15 and Joy Global is up 1.1% at $56.50.

Wednesday, February 19, 2014

3 Types of Dividend Growth Stocks For Income Investors

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Top Oil Companies To Invest In 2015

Throughout my experience as a dividend growth investor, I have identified three types of dividend growth stocks. Each type of equities comes with a distinct set of yield and growth characteristics, which the enterprising dividend investor can use to their advantage.

In my dividend portfolio, I own all types of equities, in order to benefit from long-term growth and also to add some sustainable high income in case growth doesn’t turn out as expected.

The three types include:

1)  High yielding stocks which typically grow distributions more slowly.

Most companies in this category include utilities, telecom, real estate investment trusts and many master limited partnerships. Many of these companies are natural monopolies over a certain activity such as electricity transmission in a particular area. There could be government regulation which ensures the monopoly status in a particular region, but also limits the amount of profits and returns on capital that companies could enjoy.

Others, as in the case of REITs, have properties which are already established, and would take a lot of effort from competitors to replicate that success. After all, the chances of a competitor building a new mall next to an established one are very low, as it takes time to build something and might be impractical to engage in a price war to compete for customers when you have steep upfront costs to foot. These companies generate stable streams of earnings, which do not grow quickly, but are dependable. This results in fewer dividend cuts during recessions. Because of their slow growth, such companies typically yield more than the market.

Examples of companies in the first type include:

Realty Income (O) has regularly raised distributions for 20 years in a row. The company has managed to increase dividends by 6% per year over the past decade.Yield: 5.30% (analysis)

Kinder Morgan Partners (KMP)  has regularly raised distributions for 18 years in a row. The partnership has managed to increase dividends by 7.40% per year over the past decade.Yield: 6.80% (analysis)

AT&T (T) has managed to increase dividend for 30 consecutive years. Over the past decade, the company has managed to boost dividends by 4.90% per year.Yield: 5% (analysis)

2) Companies in the sweet spot.

These are dividend stalwarts, which generate strong earnings growth, and have average or above average yields. Some of these companies tend to satisfy everyday consumer needs for medicine, cosmetics, toiletries, food, gas etc. They tend to have strong brand names and wide moats which help these companies to charge a premium price to customers. The perceived qualities of these everyday products or services, make them a preferred choice for customers, who might be willing to go out of their way in order to find what they are looking for.

For example, consumers would prefer Tylenol to its generic version. Others loyally purchase Gillette shaving products on a regular basis, without hesitation. These repeatable purchases, multiplied by millions of consumers worldwide, lead to a diversified stream of revenues for the companies that sell those products.

These companies also invest billions in research to identify new product or services solutions for their customers, identify efficiencies to increase profitability and expand organically or through acquisitions.

Examples of the companies that will provide current yield with dividend growth include:

Coca-Cola (KO) has boosted distributions for 51 years in a row. The company has managed to increase dividends by 9.80% per year over the past decade.Yield: 3% (analysis)

Johnson & Johnson (JNJ) has regularly raised dividends for 51 years in a row. The company has managed to increase dividends by 10.80% per year over the past decade.Yield: 2.90% (analysis)

Wal-Mart (WMT) has managed to increase dividend for 39 consecutive years. Over the past decade, the company has managed to boost dividends by 18% per year.Yield: 2.50% (analysis)

McDonald’s (MCD) has boosted distributions for 38 years in a row. The company has managed to increase dividends by 22.80%/year over the past decade.Yield: 3.40% (analysis)

3) The third type of dividend growth stocks includes companies with strong earnings and dividend growth, which tend to have below average yields.

These are the companies that are in a growth stage, and they tend to reinvest most of their earnings back into growing the business. Such companies have the potential to deliver high total returns over time, and the rapid dividend growth from a low base could deliver double or even triple digit yields on cost after a couple decades. Some of these stocks are typically richly priced, which is why the best time to purchase them is during market declines.

Investors have to closely monitor these companies, in order to make sure that future growth can materialize. Otherwise, if growth slows down, shares that are trading at higher multiples could fall pretty quickly, even if earnings are still increasing.

Some of the companies on my dividend growth wish list include:

Family Dollar (FDO) has boosted distributions for 38 years in a row. The company has managed to increase dividends by 13.60% per year over the past decade.Yield: 1.70% (analysis)

Casey’s General Stores (CASY) has managed to increase dividend for 14 consecutive years. Over the past decade, the company has managed to boost dividends by 19.10% per year.Yield: 1.10% (analysis)

Yum! Brands (YUM) has boosted distributions for 10 years in a row. The company has managed to increase dividends by 15.10%/year over the past five years.Yield: 2% (analysis)

Full Disclosure: Long O, KMR, KO, JNJ, WMT, MCD, FDO, CASY, YUM

Tuesday, February 18, 2014

Top 10 European Stocks For 2015

European stocks declined the most in five weeks, paring yesterday�� biggest rally for the region�� benchmark index in almost a month, as U.S. manufacturing activity fell faster than estimated, and companies in the world�� largest economy added fewer workers than forecast.

Vodafone Group Plc (VOD) retreated 3.1 percent after Verizon Communications Inc. denied it�� considering a bid for the U.K. company. Kazakhmys Plc fell to its lowest price in four years as metal prices retreated. Rexel (RXL) SA increased 1.9 percent in Paris after Goldman Sachs Group Inc. recommended buying the shares.

The benchmark Stoxx Europe 600 Index (SXXP) retreated 0.9 percent to 294.8 at the close of trading after climbing 1.3 percent yesterday on better-than-estimated U.S. factory orders data. The gauge has still advanced 5.4 percent this year, closing at its highest level since 2008 on March 14.

��e were certainly calling for a correction in developed markets,��Stewart Richardson, chief investment officer at RMG Wealth Management LLP, told Francine Lacqua on Bloomberg Television in London. ��e worry there is a bit of a slowdown in terms of economic growth coming and certainly a continued slowdown in corporate earnings. When the market has moved as much as it has from autumn of last year, it is probably time for a bit of a pause.��

Top 10 European Stocks For 2015: BP p.l.c.(BP)

BP p.l.c. provides fuel for transportation, energy for heat and light, retail services, and petrochemicals products. Its Exploration and Production segment engages in the oil and natural gas exploration, field development, and production; midstream transportation, and storage and processing; and marketing and trading of natural gas, including liquefied natural gas (LNG), and power and natural gas liquids (NGL). This segment has exploration and production activities in Angola, Azerbaijan, Canada, Egypt, Norway, Russia, Trinidad and Tobago, the United Kingdom, and the United States, as well as in Asia, Australasia, South America, North Africa, and the Middle East. This segment also owns and manages crude oil and natural gas pipelines; processing facilities and export terminals; and LNG processing and transportation, as well as NGL extraction facilities. BP p.l.c. has interests in the Trans-Alaska pipeline system, the Forties pipeline system, the Central Area transmission sys tem pipeline, the South Caucasus Pipeline, and Baku-Tbilisi-Ceyhan pipeline, as well as in LNG plants located in Trinidad, Indonesia, and Australia. The company?s Refining and Marketing segment involves in the supply and trading, refining, manufacturing, marketing, and transportation of crude oil, petroleum, and petrochemicals products and related services to wholesale and retail customers primarily under the BP, Castrol, ARCO, and Aral brands. Its Other Businesses and Corporate segment produces and markets rolled aluminum products, as well as generates energy through wind, solar, biofuels, hydrogen, and carbon capture and storage sources; and engages in shipping activities. The company was founded in 1889 and is headquartered in London, the United Kingdom.

Advisors' Opinion:
  • [By Matt DiLallo]

    Just three short years ago many feared that we'd never drill another deepwater oil well into the Gulf of Mexico. At that time BP's (NYSE: BP  ) Macondo well was still spewing oil into the Gulf with no end in sight. The disaster, which left 11 dead, has cost BP more than $30 billion in fines, settlements and cleanup costs.

Top 10 European Stocks For 2015: TotalFinaElf S.A.(TOT)

TOTAL S.A., together with its subsidiaries, operates as an integrated oil and gas company worldwide. The company operates through three segments: Upstream, Downstream, and Chemicals. The Upstream segment engages in the exploration, development, and production of oil and natural gas. It also involves in the transportation, trade, and marketing of natural gas and liquefied natural gas (LNG), as well as in LNG re-gasification and natural gas storage operations. In addition, this segment engages in the shipping and trade of liquefied petroleum gas (LPG); power generation from gas-fired power plants, nuclear, or renewable energies; production, trade, and marketing of coal, as well as in solar power systems and technology operations. As of December 31, 2010, it had combined proved reserves of 10,695 Mboe of oil and gas. The Downstream segment involves in refining, marketing, trading, and shipping crude oil and petroleum products. It also produces a range of specialty products, s uch as lubricants, LPG, jet fuel, special fluids, bitumen, marine fuels, and petrochemical feedstock. This segment holds interests in 24 refineries located in Europe, the United States, the French West Indies, Africa, and China, as well as operates a network of 17,490 service stations. The Chemicals segment produces base chemicals, including petrochemicals and fertilizers, as well as engages in rubber processing, resins, adhesives, and electroplating activities. TOTAL S.A. was founded in 1924 and is based in Paris, France.

Advisors' Opinion:
  • [By Arjun Sreekumar]

    For instance, Royal Dutch Shell (NYSE: RDS-A  ) reported a reserve replacement ratio of just 85% last year, while Total's (NYSE: TOT  ) came in at 93%. A ratio that is consistently under 100% generally indicates trouble further down the line. As the majors continue to struggle to boost their oil and gas production, future growth will increasingly come from unconventional sources, such as offshore Africa and Brazil, U.S. shale, and Canada's oil sands.

  • [By Tyler Crowe]

    At the same time, this is what makes Cheniere Energy such a difficult investment in 2014, it is still not generating any revenue from these ventures yet. Sure, the company receives some contract royalties from Total (NYSE: TOT  ) and Chevron (NYSE: CVX  ) from when its facilities were geared for LNG import, but in no way do they cover the capital expenditures necessary to get these facilities up and running.�

  • [By Dan Caplinger]

    For the largest oil companies, however, the story is much different. For them, even new discoveries that have opened up opportunities for oil fields that were thought to be entirely played out are relatively insignificant compared to the massive amounts of oil and gas that they currently produce. As a result, big oil stocks have to rely on innovation and asset purchases just to stay even with natural declines in existing-well output. During the first quarter, Exxon reported a 3.5% drop in production compared to the year-ago period, while France's Total (NYSE: TOT  ) saw 2% production declines.

Top Casino Companies To Buy Right Now: Flamel Technologies S.A.(FLML)

Flamel Technologies S.A., a biopharmaceutical company, engages in the development and commercialization of controlled-release therapeutic products based on its proprietary polymer based technology in the United Kingdom, Ireland, the United States, France, and Europe. The company develops nanogel Medusa technology, which is intended to provide controlled release following injection of therapeutic proteins, peptides, and other molecules; a microparticle adaptation of the Medusa platform that is intended for use in the delivery of smaller proteins and peptides; and Micropump technology, a microparticle technology for oral administration of small molecule drugs with applications in controlled-release, taste-masking, and bioavailability enhancement; and Trigger-Lock technology, an adaptation based on Micropump technology, which is intended to minimize the misuse and abuse of medications subject to abuse. Its principal product based on Micropump technology is Coreg CR, which is intended for the treatment of moderate to severe heart failure and left ventricular dysfunction following myocardial infarction. The company?s products under development based upon Medusa technology include Interferon-alpha, a naturally occurring protein that the body uses for the treatment of Hepatitis C virus and as a immune response; and FT-105, an injectable insulin formulation for diabetic patients. Its products based on its Micropump technology comprise LiquiTime for the elderly and pediatric patient patients, or others who have difficulty swallowing. The company has strategic alliance with Baxter International, Inc.; GlaxoSmithKline; Merck Serono; and Pfizer Inc, as well as has a joint development agreement with Digna Biotech, S.L. Flamel Technologies S.A. was founded in 1990 and is headquartered in Venissieux, France.

Top 10 European Stocks For 2015: STMicroelectronics N.V.(STM)

STMicroelectronics N.V., an independent semiconductor company, engages in the design, development, manufacture, and marketing of a range of semiconductor integrated circuits and discrete devices. Its products include discrete and standard commodity components, application-specific integrated circuits, custom devices and semi-custom devices, and application-specific standard products for analog, digital, and mixed-signal applications. The company also offers subsystems and modules for the telecommunications, automotive, and industrial markets comprising mobile phone accessories, battery chargers, ISDN power supplies, and in-vehicle equipment for electronic toll payment, as well as provides Smartcard products. Its products are used in various microelectronic applications consisting of automotive products, computer peripherals, telecommunications systems, consumer products, industrial automation, and control systems. The company sells its products through distributors and ret ailers. STMicroelectronics N.V. was founded in 1987 and is headquartered in Geneva, Switzerland.

Advisors' Opinion:
  • [By Tim Brugger]

    In addition to the upgraded Atom processor rollout, Intel also announced a realignment of its management structure. Now comes word the "leading semiconductor company" named in a recent press release announcing the acquisition of a STMicroelectronics (NYSE: STM  ) and Ericsson (NASDAQ: ERIC  ) mobile GPS joint venture was none other than Intel. When Krzanich said he was committed to the rapidly changing mobile computing market, he wasn't kidding; and that should be sweet music to the ears of Intel shareholders.

  • [By Lee Jackson]

    STMicroelectronics NV (NYSE: STM) supplies most set-top box chips for Scientific�Atlanta, and also sells chips for disk drives that end up in DVRs; but still has less than a 10% exposure. The consensus target for the stock is $11. Investors do receive an outstanding 4.0% dividend from the company.

Top 10 European Stocks For 2015: Nuveen Select Tax Free Income Portfolio(NXP)

Nuveen Select Tax-Free Income Portfolio is an exchange traded fund launched by Nuveen Investments, Inc. It is managed by Nuveen Asset Management Inc. The fund invests in the fixed income markets of the United States. It primarily invests in long-term municipal obligations with investment-grade ratings (Baa and BBB or better). Nuveen Select Tax-Free Income Portfolio was formed on March 19, 1992 and is domiciled in United States.

Top 10 European Stocks For 2015: Aercap Holdings N.V. (AER)

AerCap Holdings N.V., through its subsidiaries, operates as an integrated aviation company worldwide. It engages in leasing and trading aircraft and engines; and selling parts. The company also provides aircraft management services, as well as aircraft and limited engine MRO services, and aircraft disassembly services through its repair stations. In addition, it offers aircraft services, including remarketing aircraft; collecting rental and maintenance payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft; conducting ongoing lessee financial performance reviews; inspecting the leased aircraft; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructurings negotiations in connection with lease defaults; repossessing aircraft; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and aircraft engine valuations; and providing market research. The company?s management services include leasing and remarketing, cash management and treasury, technical advisory, and accounting and administrative services. As of March 31, 2011, it owned 272 aircraft and 95 engines, which it leased under operating leases to 118 lessees in 53 countries. The company was founded in 1995 and is headquartered in Schiphol, the Netherlands.

Advisors' Opinion:
  • [By Ben Levisohn]

    Finally. Finally American International Group (AIG) has disposed of its ILFC unit by selling it to AerCap Holdings (AER).

    Bloomberg News

    The Wall Street Journal has the details on the deal:

  • [By Roberto Pedone]

    AerCap (AER) provides aircraft leasing and aviation finance services. This stock closed up 3.3% at $18 in Wednesday's trading session.

    Wednesday's Volume: 740,000

    Three-Month Average Volume: 318,589

    Volume % Change: 85%

    From a technical perspective, AER jumped higher here right above its 50-day moving average of $17.27 with above-average volume. This stock has been uptrending strong for the last five months, with shares moving higher from its low of $14.84 to its recent high of $18.16. During that uptrend, shares of AER have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AER within range of triggering a near-term breakout trade. That trade will hit if AER manages to take out its 52-week high at $18.16 with high volume.

    Traders should now look for long-biased trades in AER as long as it's trending above its 50-day at $17.27 or above more near-term support at $17.17 and then once it sustains a move or close above its 52-week high at $18.16 with volume that's near or above 318,589 shares. If that breakout hits soon, then AER will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $20 to $23.

  • [By Paul Ausick]

    More than two years ago, American International Group Inc. (NYSE: AIG) filed with the U.S. Securities and Exchange Commission for an initial public offering (IPO) in its aircraft leasing group, International Lease Finance Corp. (ILFC). That filing came to nothing, and AIG found little interest from buyers for ILFC, until Monday morning when it announced that AerCap Holdings N.V. (NYSE: AER) will buy the leasing operation for $3 billion in cash and 97.56 million shares of new AerCap stock. The total value of the deal is approximately $5.4 billion.

Top 10 European Stocks For 2015: Fresenius Medical Care Corporation (FMS)

Fresenius Medical Care AG & Co. KGaA, a dialysis company, provides products and services for patients with chronic kidney diseases. As of May 12, 2011, it provided dialysis care services to 216,942 patients through its network of 2,769 dialysis clinics primarily in North America, Europe, Latin America, the Asia-Pacific, and Africa. The company also develops and manufactures various dialysis products, including hemodialysis machines, dialyzers, hemofilters, dialysis fluid filters, tubing systems, fistula needles, dialysis related equipment, acute hemodialysis machines, plasma filters, acute tubing systems and cassettes, catheters, and related disposable products for chronic hemodialysis, acute therapy, home therapy, and therapeutic apheresis, as well as dialysis drugs. In addition, it provides laboratory services. Fresenius Medical sells its products through distributors. The company was founded in 1996 and is headquartered in Bad Homburg, Germany.

Advisors' Opinion:
  • [By John Udovich]

    Small cap dialysis stock Rockwell Medical Inc (NASDAQ: RMTI) looks set to decline when the market opens after Brean Capital initiated coverage with a sell rating and a price target of $4.00, meaning it might be time to take a closer look at what is going on with the stock along with�the performance of large cap dialysis stocks DaVita Healthcare Partners (NYSE: DVA)�and Fresenius Medical Care (NYSE: FMS) along with small cap dialysis stocks NxStage Medical, Inc (NASDAQ: NXTM).�

Top 10 European Stocks For 2015: Aegon NV(AEG)

AEGON N.V. provides life insurance, pensions, and asset management products and services worldwide. The company?s life insurance products include traditional, term, universal, whole, and other life insurance products sold as part of defined benefit pension plans, endowment policies, post-retirement annuity products, and group risk products; supplemental health insurance products comprise accidental death, other injury, critical illness, hospital indemnity, medicare supplement, and student health; specialty lines consists of travel, membership, and creditor products; and long term care insurance products for policyholders who require care due to a chronic illness or cognitive impairment. It also offers a range of savings and retirement products and services, including mutual funds, and fixed and variable annuities, savings accounts and investment contracts, segregated funds, guaranteed investment accounts, and single premium immediate annuities, as well as investment advice to individuals. In addition, the company offers employer solutions and pensions, such as retirement plans, pension plans, and pension-related products and services; investment products, including onshore and offshore bonds, and trusts; reinsurance products and solutions to life insurance and financial services companies; general insurance products comprising house, car, and fire insurance; and asset management products and services, including general account assets, unit-linked funds, and third party activities. AEGON N.V. markets its products through independent and career agents, financial planners, registered representatives, independent marketing organizations, banks, broker-dealers, benefit consulting firms, wirehouses, affinity groups, institutional partners, independent managing general agencies, and specialized financial advisors, as well as through online, direct, and worksite marketing. The company was founded in 1900 and is headquartered in The Hague, the Netherl ands.

Top 10 European Stocks For 2015: British American Tobacco Industries p.l.c.(BTI)

British American Tobacco p.l.c., through its subsidiaries, engages in the manufacture, distribution, and sale of tobacco products. The company offers cigars, cigarettes, smokeless snus, roll-your-own, and pipe tobacco products under the Dunhill, Kent, Lucky Strike, Pall Mall, Vogue, Viceroy, Kool, Rothmans, Peter Stuyvesant, Benson & Hedges, and State Express 555 brand names. It has operations in the Asia-Pacific, the Americas, eastern and western Europe, Africa, and the Middle East. The company was founded in 1902 and is headquartered in London, the United Kingdom. British American Tobacco p.l.c. operates independently of Remgro Ltd. as of November 03, 2008.

Advisors' Opinion:
  • [By Muhammad Bazil]

    Altria Group Inc (MO) is a producer of cigarettes and other tobacco related products. Two of its competitors include; British American Tobacco (ADR) (BTI) and Imperial Tobacco Group Plc (ADR) (ITYBY)

  • [By Editor , Dividend Growth Investor]

    The company�� largest competitors include British American Tobacco (BTI), Imperial Tobacco (ITYBY) and Japan Tobacco.

    Earnings per share have doubled over the preceding 7 years to $5.17 in 2012. The company expects earnings to reach $5.37-$5.42 per share in 2013, followed by a 6-8% increase in 2014. Despite the near-term slowdown in earnings per share, the company is committed to growing currency neutral EPS by 10-12% per year after 2015.

  • [By Victor Selva]

    Investors can have another option of investing in the tobacco sector with British American Tobacco PLC (BTI). Also selling tobacco products in 180 countries, the company holds leadership positions in around 50 of them. Brands like Dunhill, Kent, Pall Mall and Lucky Strike are well known and have been gaining share over the past several years.

  • [By G. A. Chester]

    LONDON -- There are things to love and loathe about most companies. Today, I'm going to tell you about three things to love about�British American Tobacco� (LSE: BATS  ) (NYSEMKT: BTI  ) .

Top 10 European Stocks For 2015: Telefonica SA(TEF)

Telefonica, S.A. provides fixed and mobile telephony services primarily in Spain, rest of Europe, and Latin America. Its fixed telecommunication services include PSTN lines; ISDN accesses; public telephone; local, domestic, and international long distance and fixed-to-mobile communications; corporate communications; video telephony; supplementary and business-oriented value-added services; network services; leasing and sale of handset equipment; and telephony information services. The company?s Internet and broadband multimedia services comprise Internet service provider service; portal and network services; retail and wholesale broadband access; narrowband switched access to Internet; naked ADSL, a broadband connection; residential-oriented value-added services; companies-oriented value-added services; television services, such as IPTV, cable television, and satellite television; and Fiber to the Home, a service for high speed Internet access and digital video recording. Its data and business-solutions services principally include leased lines; virtual private network services; fiber optics services; the provision of hosting and application; outsourcing and consultancy services; desktop services; and system integration and professional services. The company?s wholesale services for telecommunication operators primarily comprise domestic interconnection services; international wholesale services; leased lines for other operators? network deployment; local loop leasing under the unbundled local loop regulation framework; and bit stream services. It also offers various mobile and related services and products that include mobile voice services, value added services, mobile data and Internet services, wholesale services, corporate services, roaming, fixed wireless, and trunking and paging services. The company has a strategic alliance with China Unicom (Hong Kong) Limited. Telefonica, S.A. was founded in 1924 and is headquartered in Madrid, Spai n.

Advisors' Opinion:
  • [By Chris Hill, Jason Moser, and Eric Bleeker, CFA]

    Reports last week out of Spain indicated that AT&T (NYSE: T  ) �was looking at making an offer to�Telefonica (NYSE: TEF  ) �valued at $93 billion. According to Spanish newspaper El Mundo,�the sale didn't proceed in part because of governmental concerns over having a foreign company buy the country's most valuable telecom player. Yet even if AT&T and Telefonica aren't met to be, there is ample evidence that America's dominant mobile companies have begun looking abroad for growth.

  • [By Dan Caplinger]

    With dividend stocks, however, you have no guarantee that there's no assurance that you'll receive a dividend. For instance, Spanish telecom company Telefonica (NYSE: TEF  ) chose last year not to pay its planned dividend for 2012, saying it would restore half the payout later this year. Even stalwart blue-chips General Electric (NYSE: GE  ) and Pfizer (NYSE: PFE  ) had to reduce their dividends dramatically during the financial crisis, and even now, they haven't risen back to their pre-crisis levels.

Monday, February 17, 2014

Sirius XM Is Facing Some Serious Competition

LinkedIn Logo RSS Logo James Brumley Popular Posts: Twitter: Great Story or Not, TWTR Stock Has a Valuation Problem10 Stocks Under $20 to Buy in 2014Horrible Bosses – The Worst 5 CEOs of 2013 Recent Posts: Sirius XM Is Facing Some Serious Competition Chinese Love for U.S. Is Smothering American Companies Twitter: Great Story or Not, TWTR Stock Has a Valuation Problem View All Posts

By almost all accounts, Sirius XM (SIRI) is the classic American success story.

sirius-xm-siri-stockThe company effectively created an industry – satellite radio — from scratch. And being the organization to develop it, SIRI has been the one to dominate that industry: The company boasts roughly 26 million subscribers now, up from only 1.6 million subscribers at the end of 2003. Even more impressive is how that subscriber base drove $3.7 billion worth of revenue for Sirius over the past four quarters. Not bad.

As is the case for any technology-dependent company, however, the sheer passage of time is a threat to Sirius XM. In fact, 2014 may well be the technological tipping point that makes the stock more of a liability than an asset.

To reiterate, you have to give Sirius XM a lot of credit. It created something out of nothing, and has turned a tidy profit for a few years by doing so. There are two realities, however, that should start to worry SIRI stock owners:

Much of Sirius XM’s success is driven by auto owners who want commercial-free programming in their car, and automakers have been willing to build satellite radio receivers into the dashboards of new vehicles. The advent of mobile broadband (and smaller computer chips) has opened up the door to smartphones and tablets being plugged into automobile dashboards, which can offer not just audio entertainment, but a variety of tools and utilities that were never possible in a vehicle before.

As to the first point, 69% of new cars sold in the United States are equipped with Sirius satellite radio receivers, and 44% of the new-car buyers that utilize the free six-month trial end up becoming paying subscribers. With an estimated 50 million receiver-equipped vehicles on the road now and an estimated 100 million such-equipped cars likely to be on the road by 2018, it would be easy to assume Sirius XM is sitting pretty.

It’s the second reality that has starting to cause problems, however, and it’s a bigger problem than most investors might appreciate. And no, being brought under the Liberty Media (LMCA) umbrella — as Liberty Media proposed on Friday — isn’t going to change either of these now-troubling realities for Sirius XM.

Apple and Google Push Sirius XM Aside

When Apple (AAPL) first unveiled the idea of connecting an iPhone to a car’s dashboard in 2012, it wasn’t viewed as a completely crazy idea. In-dash screens had already been introduced, GPS devices were already affixed to many consoles, and it was largely assumed the melding of personal consumer technology and vehicles was only a matter of time, and that time was soon. Nobody saw the melding of an automobile and an operating system as a looming game-changer though.

What a difference two years can make. Since then, Apple has been forging partnerships with BMW, Mercedes-Benz, General Motors (GM), and Honda Motor Co. (HMC). In some of this year’s models, for instance, Honda will be building in the technology that allows a driver to use the Apple’s iOS “Siri” assistant to retrieve e-mails, weather reports, and of course, driving directions.

Oh, and let’s not forget that one of the coolest things about an iPhone is that it can keep its owner perfectly connected with his or her cache iTunes songs and/or tuned into the newish iTunes Radio, which are now both available for listening via the vehicle’s dash. Suddenly that satellite radio receiver is starting to feel a tad redundant, and less powerful than the other device hooked up to your car.

And if there was still a smidgen of  a chance that consumer-tech companies weren’t actually all that interested in dominating automobiles’ dashboards, Google (GOOG) just quelled it.

At last week’s annual Consumer Electronics Show in Las Vegas, the web-search giant and developer of mobile operating system Android unveiled — alongside Audi — a vehicle-centric version of the software that not only does everything the Apple iOS can do for a car (like offering maps and driving directions), but offers a built-in wi-fi connection for up to eight passengers’ mobile devices.

And thus begins the wireless-internet wars within your car. Apple may have fired the first shot using a device that’s constantly connected to wi-fi or mobile internet. Google has now fired back with a car that is the connected device. Never mind the fact that Pandora (P) has already generated more than a couple million in-car-radio account activations, via eight stereo manufacturers, with the service available in cars from 23 different manufacturers.

To give credit where it’s due, Apple is miles ahead of Google (and Pandora) when it comes to in-car mobile operating systems. Honda has already committed to adding the feature in some cars this year, with more carmakers rumored to be ready to do the same. Still, given that Google is now where Apple was a couple of years ago on the vehicle front, one can only help but wonder how many on-board wi-fi automaker partners Google will have in its corner by this time in 2016.

And the Point Is?

So what’s any of this got to do with Sirius XM? Nothing … and that’s the point. While Sirius XM has been cultivating its business based on a technology that’s now more than a decade old, the advent of a new and more powerful technology has reframed the question from “How could anyone ever unseat Sirius?” to “Will consumers prefer Apple or Android once wi-fi-connected cars become the norm?”

Just so there’s no misunderstanding, none of this is to say Sirius XM is on the cusp of bankruptcy. The company has millions of loyal fans, and could coast for years even if it never added another new subscriber from here. Indeed, Sirius XM has enough of a marketable product that Liberty Media is interested in acquiring the satellite radio outfit.

It’s also worth adding that Sirius XM satellite is a cheaper option than mobile broadband, if a consumer’s only interest is in audio entertainment. Sirius provides 24/7 unlimited access to a variety of radio station genres for about $15 per month, while mobile internet service costs roughly $10 per gigabyte of data. That’s enough bandwidth for about 200 songs, or ten hours’ worth of streaming audio.

Is that all the average Sirius XM subscriber needs were that subscriber forced to make a switch? That’s the question. The answer for at least some — perhaps too many — Sirius subscribers, however, is “yes”, which leads to the next obvious question … why would a Sirius XM customer continue to pay money for a service that can be provided at a similar price by a device that he/she is likely already carrying around anyway?

See, as of the middle of last year, more than half of all mobile phones in use in the United States were smartphones. Most of those smartphones are sold with mandated data plans in tow, whether those owners want them or not. Why not use what’s being paid for anyway? The proliferation of these data plans — especially now that data plans will make driving a car a more convenient experience — is making satellite radio more and more obsolete.

Liberty Media may be able to do something interesting with Sirius, but Liberty can’t change the underlying facts of the technologies in play here.

Bottom Line

Fans and followers of Sirius XM will be quick to point out that the dedicated satellite radio service brings something to subscribers that simply isn’t available through any other venue. The quality of programming is one of those attributes that will keep some Sirius subscribers forever.

Fair enough. But that’s not likely to be enough for many Sirius subscribers, even if it will take a few years for that to become evident. And, no, the availability of Sirius XM’s broadcasts via the internet isn’t a game-changer. The stock’s bound to start struggling now, in the face of Sirius XM’s eventual displacement.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

Friday, February 14, 2014

5 Smartwatches You Can Buy Right Now

The rumors are growing that Apple is on the cusp of releasing its iWatch, but while investors are impatiently waiting for the company to enter the wearables market, Samsung (NASDAQOTH: SSNLF  ) , Sony (NYSE: SNE  ) , Qualcomm (NASDAQ: QCOM  ) and others are already firmly in the smartwatch space.

Flip through the slideshow below to check out some of the latest smartwatches on the market and the key features that make them stand out from the rest of the pack. The devices run the gamut from the top tech companies to crowd-sourced start-ups, and each have their own merits. Whether you prefer high-end cameras, special apps, or a budget conscious option, the following smartwatches are some of the best on the market.

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Tuesday, February 11, 2014

3 Huge Stocks to Trade (or Not)

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

>>5 Hated Earnings Stocks You Should Love

From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

>>5 Rocket Stocks to Buy for a Market Bounce

These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. That's especially true now that earnings season is officially underway. And when there's a big catalyst, there's often a trading opportunity.

Without further ado, here's a look at today's stocks.

General Motors


Nearest Resistance: $37.50

Nearest Support: $34

Catalyst: Technical Setup

>>5 Stocks Poised for Breakouts

2014 has not been kind to General Motors (GM). Since the calendar flipped to January, the automaker has slid almost 15%. More significant, despite buoyancy in the markets for the last few sessions, shareholders haven't gotten a reprieve -- shares fell another 3.35% in Monday session.

While there are a lot of rationales for that, ranging from CEO Mary Barra's pay to rising vehicle inventories to weak January sales numbers, the bottom line is that this chart is broken. The technicals are the most important factor to keep an eye on right now.

GM is in a well-defined downtrend right now, and the hint of a consolidation here isn't an excuse to buy. That'll only come when the downtrend gets broken.

Zynga


Nearest Resistance: $4.75

Nearest Support: $4.40

Catalyst: Technical Setup

>>4 Big Stocks to Trade (or Not)

Zynga (ZNGA) is another technical trade to watch this week. The social media video game maker has been a perennial high-volume name, thanks to attention on big partner Facebook (FB) -- and now, both companies' charts are looking bullish.

For Zynga, the next high-probability buying opportunity comes on a move through that dashed resistance line at $4.75. While shares flirted with that price tag on Monday, they have yet to hold a close above it. When $4.75 gets taken out, it's a good indication that buyers are finally in control.

Green Mountain Coffee Roasters


Nearest Resistance: $111

Nearest Support: $100

Catalyst: Coca-Cola Deal

>>5 Toxic Stocks to Sell Now

Talk about a short squeeze. Shares of $16 billion coffee company Green Mountain Coffee Roasters (GMCR) are up big in February, after the firm announced beverage giant Coca-Cola (KO) had purchased a 10% stake and would be partnering on the firm's upcoming Keurig Cool in-home bevergage machine.

After the initial price explosion three sessions ago, shares of GMCR have been consolidating in a channel, bouncing between round number support at $100 and resistance at $111. Even if you missed the move, the momentum is undeniable in GMCR right now. A breakout above $111 is the next high probability buying opportunity.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.


RELATED LINKS:



>>5 Dividend Stocks That Want to Give You a Raise in 2014



>>5 Ways to Invest Like a Pension Fund



>>3 Stocks Spiking on Big Volume

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author was long AAPL.

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


Monday, February 10, 2014

Health law mandate for some employers delayed

WASHINGTON — Businesses with more than 50 employees but fewer than 100 will have an extra year to phase in coverage of employees who work more than 30 hours a week, Treasury Department officials announced Monday.

Businesses with more than 100 employers will be subject to employee-coverage rules under the Affordable Care Act beginning in January 2015. The mandate to provide insurance had already been delayed one year.

Volunteer firefighters, part-time teachers and adjunct professors who teach less than 15 hours a week will not be counted as full-time employees, according to a rule released Monday.

STORY: Obama administration to delay part of Affordable Care Act

"While about 96% of employers are not subject to the employer responsibility provision, for those employers that are, we will continue to make the compliance process simpler and easier to navigate," said Assistant Secretary for Tax Policy Mark J. Mazur. "Today's final regulations phase in the standards to ensure that larger employers either offer quality, affordable coverage or make an employer responsibility payment starting in 2015 to help offset the cost to taxpayers of coverage or subsidies to their employees."

The delay announced last July fueled calls from the law's Republican opponents that the entire law needed to be delayed or repealed, which President Obama and congressional Democrats refused to do. The federal and state exchanges where people can buy health insurance opened on time Oct. 1 but were immediately plagued by outages and glitches that slowed enrollment to a crawl until the site was fixed Nov. 30. Since then, more than 3 million have bought insurance through the exchanges.

The new rule gives employers more time to expand coverage or to provide health insurance if they have never done so before. Those who do not have insurance through their employers may sign up for health insurance at www.HealthCare.gov. Most Americans who make less than 400% of the federal poverty level, or $94,200 for ! a family of four, are eligible for subsidies to help pay for insurance.

STORY: Another HealthCare.gov delay announced

Businesses with more than 100 employees must offer coverage to 70% of their full-time employees in 2015 and 95% of their employees in 2016.

Employers will need to certify on a form that they did not drop employees to avoid providing coverage.

The change came after input from employers and members of Congress. The new rule determines that adjunct professors should be based on an hour and 15 minutes of preparation outside the classroom for every hour spent teaching in the classroom and that teachers working full-time during the school year do not count as part-time employees if they have the summer off.

Businesses with more than 50 employees would have paid a fee of $2,000 per uninsured employee after the first 30 employees, as well as a fee for employees who receive a subsidy through the exchanges. This comes at a cost to the government: The Congressional Budget Office expected such penalties to bring in $4 billion in 2014, and the new delay causes two years' worth of lost funds.

Companies with fewer than 50 full-time workers are already exempt from the rule.

Follow @kellyskennedy on Twitter.

Saturday, February 8, 2014

The Week Ahead: Back to the Future—Hoping for 1954

For those who follow Chinese astrology, 2014 is the year of the wood horse, which is supposed to be one of wealth and success. MoneyShow’s Tom Aspray takes a technical look to see whether investors can expect it to be like a previous wood horse year, 1954, when the Dow gained almost 40%.

Last week started off with fears of Armageddon as the contagion from the emerging markets hit the developed stock markets quite hard. The S&P 500 futures lost 44 points by mid-afternoon, Monday, with little in the way of a bounce. The gloom seemed to spread over the next two days as several economists tempered their bullish economic outlooks for 2014.

The weaker-than-expected Factory Orders last Tuesday did not help much though stocks did stabilize. Investors pulled a record of $8.8 billion from stock funds and ETFs during the week ending February 5, according to Lipper, Inc. Many moved into the perceived safety of the bond market with $10.7 moving into the bond funds and ETFs.

Thursday’s gain in the Dow was the best of the year, so traders, as well as investors were understandably nervous going into the monthly jobs report last Friday. Though the stock index futures dropped initially on the report they soon reversed course to close the day sharply higher. Many investors are now more confused than ever as they don’t know whether they should be buying or selling and probably can’t decide how much to have in the stock market as we head into 2014.

chart

Many of you may be aware that according to the lunar calendar, the New Year began on January 31 with the year of the wood horse. Each year an animal is paired with one of the elements. In 2002 it was the water horse, which was preceded by the fire horse in 1990. Other recent horse years were 1978, 1966, and 1954. The investment banking and asset management firm, CSLA, has released its tongue in cheek annual Feng Shu Index report for the New Year.

Both 1978 and 1954 were pretty good years for stocks following the lunar calendar, and in 1954, the Dow had one of its best years ever, gaining close to 40%. That kind of year in 2014 is beyond everyone’s expectations, even mine.

The technical outlook has improved as it is no longer overbought and the sentiment has also become more negative, which was needed before stocks could mount a sustainable rally. Still, there are no clear signs yet that the correction is over, but the longer-term analysis continues to indicate that this correction is a buying opportunity.

I still think that 2014 will be a year when the January barometer will be wrong, and I feel even more confident that at some point the S&P 500 will be up at least 10% for the year.

chart

The recent drop in bond yields has gotten quite a bit of attention and those who switched into bonds last week are obviously hoping that rates will move even lower. The daily chart of the 10-year T-note yield shows what could be a double top formation as indicated by points 1 and 2. It will take a decisive drop in yields below 2.50%, line a, to confirm this interpretation.

The longer-term analysis suggests to me that this is more likely a continuation pattern or a pause in the trend towards higher yields. If so, it will eventually be resolved by a convincing move in yields above the 2013 highs. The current range could last for some time, though the daily MACD analysis could turn back to positive in the next week or so. This may mean yields will move back towards the upper boundaries of their recent range.

The European Central Bank stuck with its low rates last week and apparently plan to keep them low for some time. This will be a plus for the German and Italian bond sales next week. Late last week, a German court questioned the legality of the ECB’s bond-buying program, but so far, the markets are not worried.

There was also no change from the Bank of England as they did not want to take any chance that rising rates would stall their recovery. As reported by the Wall Street Journal “The bank's ‘forward guidance’ states that officials won't consider raising the interest rate until the unemployment rate fell to at least 7%.” Their main interest rate has been at 0.5% since March of 2009.

chart

Many were disappointed that the ECB did not lower rates as the Eurozone inflation rate dropped to 0.7%, which is well below their target of 2%. The consumer inflation rates of the US, Eurozone, China, and the UK still show longer-term downtrend (see chart). Japan is the only exception as its consumer inflation moved above the zero level in 2013. These low inflation numbers and the threat of deflation are something the central bankers and investors should not ignore.

NEXT PAGE: What to Watch

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Friday, February 7, 2014

5 Stocks Under $10 Set to Soar

DELAFIELD, Wis. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 a share or less don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous coin on a regular basis.

>>5 Big Trades for Post-Taper Gains

Just take a look at some of the hot movers in the under-$10 complex from Thursday, including Alimera Sciences (ALIM), which is skyrocketing higher by over 60%; pSivida (PSDV), which is soaring higher by over 40%; Oxygen Biotherapeutics (OXBT), which is ripping higher by over 30%; and Astrotech (ASTC), which is spiking higher by over 20%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

One low-priced stock that recently exploded higher was trucking player YRC Worldwide (YRCW), which I highlighted in Dec. 12's "5 Stocks Under $10 Set to Soar" at $9.70 per share. I mentioned in that piece that shares of YRC Worldwide had been downtrending badly for the last five months, with shares plunging lower from $33.89 to $7.06 a share. Shares of YRCW had recently formed a triple bottom chart pattern over the last month, at $7.06, $7.20 and $7.44 a share. The stock had started to reverse its downtrend and enter a new uptrend since forming that triple bottom, with shares moving higher from $7.06 to $10.50 a share. That move was starting to push shares of YRCW within range of triggering a big breakout trade above some near-term overhead resistance levels at $10.63 to its 50-day moving average of $10.87 a share.

>>6 Stocks With Big Insider Buying

Guess what happened? Shares of YRC Worldwide did not wait long to trigger that breakout, since the stock exploded higher on Dec. 13 with monster upside volume. This stock tag an intraday high on that day of $12.81 a share, which is a monster move. Shares of YRCW were far from done with its uptrend, since this stock has continued to run higher with shares hitting an intraday high on December 18 of $15.24 as share. That represents a monster gain of close to 60% since I flagged this setup at $9.70 a share.

Low-priced stocks are something that I tweet about on a regular basis. I frequently flag high-probability setups, breakout candidates and low-priced stocks that are acting technically bullish. I like to hunt for low-priced stocks that are showing bullish price and volume trends, since that increases the probability of those stocks heading higher. These setups often produce monster moves higher in very short time frames.

I'm not as eager to recommend investing long-term in stocks that trade less than $10 a share because these names can be very speculative, and the odds for picking the long-term winners aren't great. But I definitely love to trade stocks that are priced below $10. I like to view them as a trading vehicle with lots of volatility and lots of upside when the trade is timed right.

>>5 Cash-Rich Stocks That Could Pay Triple the Gains in 2014

When I trade under-$10 names, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 names with a catalyst, but that's secondary to the chart and volume patterns.

With that in mind, here's a look at several under-$10 stocks that look poised to trade higher from current levels.

Quantum Fuel Systems Technologies Worldwide


One under-$10 alternative energy player that's starting to move within range of triggering a major breakout trade is Quantum Fuel Systems Technologies (QTWW), which designs, develops and produces compressed natural gas storage tanks and packaged fuel systems and other advanced fuel and propulsion systems for alternative fuel vehicle applications. This stock has been on fire so far in 2013, with shares up large by 1545.

>>5 Hated Earnings Stocks You Should Love

If you take a look at the chart for Quantum Fuel Systems Technologies, you'll notice that this stock has pulled back from its high of $7.64 to its recent low of $5.85 a share. That low corresponded with the stock's 50-day moving average, and shares managed to hold right above that key technical level. Shares of QTWW have now started to find buying interest as the stock has soared higher from $5.85 to its intraday high of $7.11 a share. That move is quickly pushing shares of QTWW within range of triggering a major breakout trade.

Traders should now look for long-biased trades in QTWW if it manages to break out above some near-term overhead resistance levels at $7.43 to its 52-week high at $7.64 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 808,597 shares. If that breakout triggers soon, then QTWW will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $9 to $10 a share.

Traders can look to buy QTWW off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $5.93 a share. One can also buy QTWW off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

China TechFaith Wireless Comm Tech


Another under-$10 wireless telecom player that's starting to move within range of triggering a big breakout trade is China TechFaith Wireless Comm Tech (CNTF), which is a China-based original developed product provider focused on the original design and development of handsets and sales of finished products to its local and international customers. This stock has been performing modestly strong so far in 2013, with shares up 19.8%.

>>4 Tech Stocks Under $10 to Watch

Top Safest Stocks To Watch For 2015

If you take a look at the chart for China TechFaith Wireless Comm Tech, you'll notice that this stock has been trending sideways over the last two months, with shares moving between $1.28 on the downside and $1.60 on the upside. Shares of CNTF have just started to spike higher back above its 50-day moving average of $1.46 a share with above-average volume. Volume so far on Thursday has registered over 304,000 shares versus its three-month average action of 293,475 shares. That move is quickly pushing shares of CNTF within range of triggering a big breakout trade.

Market players should now look for long-biased trades in CNTF if it manages to break out above some near-term overhead resistance levels at $1.54 to $1.60 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 293,475 shares. If that breakout hits soon, then CNTF will set up to re-test or possibly take out its next major overhead resistance levels at $1.80 to its 52-week high at $2.08 a share. Any high-volume move above its 52-week high at $2.08 a share will then give CNTF a chance to re-fill some of its previous gap down zone from February of 2012 that started at $2.25 a share. If that gap gets filled with strong volume, then CNTF could easily tag $2.50 to $2.70 a share.

Traders can look to buy CNTF off any weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $1.40 or at $1.32 a share. One can also buy CNTF off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Venaxis


One under-$10 bio therapeutic drugs player that's starting to trend within range of triggering a major breakout trade is Venaxis (APPY), which advances products that address unmet human diagnostic needs. This stock has been on fire over the last six months, with shares soaring higher by 59%.

>>4 Stocks Triggering Breakouts on Unusual Volume

If you take a look at the chart for Venaxis, you'll notice that this stock has been uptrending strong for the last few weeks after it touched its 200-day moving average, with shares moving higher from its low of $1.71 to its intraday high of $2.15 a share. During that uptrend, shares of APPY have been consistently making higher lows and higher highs, which is bullish technical price action. This stock has now started to break out on Thursday above some key overhead resistance levels at $2.03 to $2.09 a share with strong volume. That move is quickly pushing shares of APPY within range of triggering another major breakout trade.

Traders should now look for long-biased trades in APPY if it manages to break out above some near-term overhead resistance at $2.20 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 541,564 shares. If that breakout triggers soon, then APPY will set up to re-test or possibly take out its next major overhead resistance levels at $2.70 to its 52-week high at $2.99 a share. Any high-volume move above those levels will then give APPY a chance to tag its next major overhead resistance levels at $3.18 to $3.50 a share.

Traders can look to buy APPY off weakness to anticipate that breakout and simply use a stop that sits right around its 50-day moving average of $1.82 a share. One can also buy APPY off strength once it starts to clear $2.20 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

GTx


Another under-$10 biopharmaceutical player that looks ready to trigger a major breakout trade is GTx (GTXI), which is dedicated to the discovery, development and commercialization of small molecules that selectively target hormone pathways to treat cancer, osteoporosis and bone loss, muscle loss and other serious medical condition. This stock has been destroyed by the bears so far in 2013, with shares off sharply by 62%.

>>5 Rocket Stocks Worth Buying This Week

If you take a look at the chart for GTx you'll notice that this stock has trending sideways inside of a long consolidation chart pattern for the last two months and change, with shares moving between $1.41 on the downside and $1.97 on the upside. This stock recently formed a double bottom chart pattern at $1.41 to $1.42 a share. Shares of GTXI have now started to spike higher off those support levels and the stock is closing in on its 50-day moving average of $1.62 a share. That move is quickly pushing shares of GTXI within range of triggering a major breakout trade.

Market players should now look for long-biased trades in GTXI if it manages to break out above its 50-day moving average of $1.62 a share, and then once it takes out more near-term overhead resistance levels at $1.73 to $1.97 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 716,033 shares. If that breakout hits soon, then GTXI will set up to re-test or possibly take out its next major overhead resistance level at $2.36 a share. Any high-volume move above $2.36 will then give GTXI a chance to re-fill some of its previous gap down zone from August that started just above $4 a share.

Traders can look to buy GTXI off weakness to anticipate that breakout and simply use a stop that sits right below those double bottom support levels at $1.42 to $1.41 a share. One can also buy GTXI off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Ariad Pharmaceuticals


One final under-$10 biopharmaceuticals player that's quickly moving within range of triggering a major breakout trade is Ariad Pharmaceuticals (ARIA), which is engaged in the discovery and development of breakthrough medicines to treat cancers by regulating cell signaling with small molecules. This stock has been hammered by the sellers so far in 2013, with shares off huge by 73%.

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If you take a look at the chart for Ariad Pharmaceuticals, you'll notice that this stock just formed a double bottom chart pattern at $3.80 to $3.83 a share. Following that bottom, shares of ARIA have spiked sharply higher back above its 50-day moving average of $3.63 a share. Shares of ARIA have also started to break out above some near-term overhead resistance at $4.85 a share with strong upside volume. That move is quickly pushing shares of ARIA within range of triggering another major breakout trade.

Traders should now look for long-biased trades in ARIA if it manages to break out above some near-term overhead resistance levels at $5.62 to its gap down day high of $6.10 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 19.95 million shares. If that breakout hits soon, then ARIA will set up to re-fill some of its previous gap down zone from October that started above $18 a share. Some possible upside targets if ARIA gets into that gap with volume are $8 to $10 a share.

Traders can look to buy ARIA off weakness to anticipate that breakout and simply use a stop that sits right below $4 a share. One can also buy ARIA off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

To see more hot under-$10 equities, check out the Stocks Under $10 Setting Up to Explode portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>5 Commodity Stocks to Trade for Gains



>>4 Stocks Rising on Unusual Volume



>>3 Stocks Under $10 in Breakout Territory

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


Thursday, February 6, 2014

IRS nominee hopes to make tax agency ‘admired’

President Obama's choice to lead the Internal Revenue Service told a Senate panel Tuesday that his mission is to make the IRS "the most effective, admired and well run agency in government."

John Koskinen, facing a confirmation hearing at the Senate Finance Committee, also acknowledged the challenges: accusations of political targeting of tax-exempt organizations, the implementation of new subsidies and penalties under the Affordable Care Act, and $1 billion in budget cuts.

His nomination appears to be non-controversial. Koskinen has key support from Chairman Max Baucus, D-Mont, who called him a "turnaround artist," and ranking Republican Orrin Hatch, R-Utah, who lauded his credentials in the public and private sector. And a change in Senate rules last month means his nomination can't be filibustered.

Koskinen, 74, has a long resume of leading government agencies through a wide array of management crises. He was chairman of Freddie Mac when the Obama administration took it over after the housing crisis. deputy mayor for the District of Columbia as it climbed out of financial mess, oversaw President Clinton's Y2K conversion efforts and worked at the Office of Management and Budget during the Clinton-era government shutdowns. He even served as a junior staffer President Lyndon Johnson's commission to investigate the 1967 race riots.

Koskinen promised to listen to front-line IRS employees, work with Congress and improve taxpayer services.

"Taxpayers need to be confident that they will be treated fairly, no matter the background or affiliations," Koskinen said.

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Hatch said he had hoped Koskinen's nomination could wait until after the conclusion of congressional investigations into the targeting of political groups seeking tax-exempt status. Evidence released from those probes show that groups affiliated with the Tea Party movem! ent -- and also a smaller number of liberal groups -- had their applications held up for more than two years and were subjected to extraordinary scrutiny.

But Baucus noted that the IRS has been without a permanent commissioner for more than a year, and Koskinen's nomination has been pending for 132 days.

"He's the right person to take on this challenge, and with the filing season approaching, the IRS needs a confirmed leader in place," Baucus said.

Wednesday, February 5, 2014

Centor Energy is Locked and Loaded (CNTO, CPG, QEC)

Well, that answers that question. Questerre Energy Corp. (TSE:QEC) and Crescent Point Energy Corp. (TSE:CPG) likely knew they had some shale-oil mining neighbors in the Bakken Shale neighborhood in Saskatchewan, Canada, but they hadn't seen much of that competition. That's about to change soon. Adequately funded and eager to begin laying its final mining plans, Centor Energy Inc. (OTCBB:CNTO) is going to officially own 55% of a 21,000 acre shale oil property that's anywhere from just a few miles away to just a few meters away from and Crescent Point Energy's and Questerre Energy's operations in one of the oil-richest known areas in the Bakken formation. And to be clear, it's not like Centor Energy is just getting the ball rolling; the planning for this project has been underway for months. Once the property-acquisition deal is inked in mid-February, CNTO will likely finish up its feasibility study and begin the approval process for its facility later in the year. That's pretty quick, but as was noted, a great deal of the legwork has already been done.

First things first. For those not familiar with it, CNTO is a junior oil and gas explorer. Its attention was recently turned to the Saskatchewan area, where the aforementioned Questerre Energy Corp. and Crescent Point Energy Corp. along with several other shale miners have been working diligently to maximize the region's full oil potential for a few years now. There's still plenty of opportunity left for a newcomer though, and Centor Energy has the numbers to back the idea up. The most important of those numbers: 1.1 billion. That's the number of barrels of oil Chapman Petroleum Engineering said was apt to be waiting to be extracted in its December-2013 evaluation report. At $100 per barrel, that's a little more than $100 billion worth of oil underneath the 21,000 acre property that CNTO will officially own a lease on as of February 16th. Eat your heart out QEC and CPG shareholders.

As impressive as the amount of oil apt to be squeezed between the property's sub-surface rocks, what's even more impressive is how easy most of that oil will be to get to. Not that it's just jumping out of the ground and into barrels waiting nearby, but at some points, Chapman believes oil could be as close as ten feet from the surface. Equally encouraging is that Centor Energy Inc. won't have to fight and scrap for every single drop of oil it extracts from the shale underground at this Pasquia Hills property. The same Chapman report (report 51-101, by the way, for those wanting the details) also believes the oil shale is about 75 feet thick in a lot of places, meaning the company can start one dig, and simply keep pushing lower in that same spot for a long while. It's more efficient than hunting and pecking for the biggest deposits, which means Centor will be able to spend less than neighbors like Questerre Energy Corp. or Crescent Point Energy Corp. to go into production.... $100 million less, according to some estimates.

5 Best China Stocks For 2015

So what's the big question that was answered today? In simplest terms, CNTO got the funding it needed to go ahead and sign the long-term lease that gives the company a 55% share of the property's output for years to come. It was only a $1.25 million loan, but it doesn't even need all of that to enter the land agreement. Some of that money is going to be used to continue laying out the drilling plan stemming from the feasibility study. Centor Energy can put some more serious boots on the ground and start drilling test holes and taking more samples as early as March 7th.

Bottom line? Centor has put the wheels in motion. There's no going back now, and there's no need to. From here, any good news can me taken at face value... as a sign of the march towards production.

For more on Centor Energy, visit the company website here, or review the SCN research report here.

Tuesday, February 4, 2014

Ask Matt: Better shop around on retail stock

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.

Q: Why are investors souring on retailers?

A: Investors thought retail stocks were money in the bank. But that changed after the holidays.

Some retail stocks suffered a tough start to 2014 after a number of well-known companies issued warnings about the fourth quarter, or shortfalls. Retailers ranging from Sears and Ross Stores to Lululemon, Amazon.com and Wal-Mart stunned investors, saying the holiday period wasn't that great. These revelations have soured investors not just on retail, but on markets in general.

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Shares of the SPDR S&P Retail exchange-traded fund have fallen nearly 10% so far this year as investors digest the warnings. Earnings warnings from consumer discretionary stocks, which includes retail, hit their highest level since the economy's trouble in 2008, says John Butters of FactSet.

Investors had high hopes for Internet retailers, but after Amazon missed expectations, investors are questioning this area, too. That's not to say all retailers are disappointing. Some other retailers including Macy's and Nike continue to see areas of growth beyond expectations. Retailers are increasingly pulling apart from each other, with the strong ones putting up robust growth as the weaker players fade away.

Follow Matt Krantz on Twitter: @mattkrantz.

Saturday, February 1, 2014

Some Toyotas to miss big-sales weekend

Toyota is heading into the weekend with 35,000 of its most popular models sidelined while it waits on a new material to replace some padding that might not resist fire quite long enough.

Toyota does, however, have some 300,000 other vehicles on dealer lots or en route.

"We don't want to give people the impression there are no cars to buy," says Mike Michels, top-ranking Toyota spokesman.

The vehicles that Toyota on Thursday ordered dealers not to sell are 2012 to 2014 models of Camry, the nation's best-selling car. Also, 2013 and 2014 Avalons, Siennas and Tacomas; and 2014 Corollas and Tundras. Only those models with seat heaters are included.

Toyota dealers dealers are especially competitive and will be surly if they have to turn away buyers during the weekend, when many more shoppers are on the lots than during weekdays.

Too, the weekend is the final sales period of the month, when dealers usually put on a full-court press so they can report the highest-possible sales tallies to Toyota.

Beyond that, "Given that much of the U.S. is currently in the grips of a record cold snap there's sure to be high demand for models with seat heaters," points out Karl Brauer, analyst for Kelley Blue Book.

Michels described the material in question as batting that sits under the seat upholstery and above a fire-proof layer that's directly atop the seat heaters.

He says Toyota sees the publicity about the matter as "a great over-reaction" because there have been no complaints and the likelihood of a fire due to the incorrect batting is almost nil, in the automaker's view.

Toyota has changed the material so newly built vehicles shouldn't have the problem. And it's hot recalling others in owners' hands because ":at this time we do not believe customers need to take action."

The automaker said it "intends to file a petition for a determination that this noncompliance issue is inconsequential as it relates to motor vehicle safety. NHTSA will determine if the petitio! n will be accepted or denied."

The National Highway Traffic Safety Administration can excuse car companies from recalls when the error is minor, such as a misplaced safety label.

NHTSA could go to the other extreme and press the car company for a recall. In that case, Toyota could be facing a recall of hundreds of thousands of cars and trucks.

Toyota still is clouded in some buyers' minds by charges of sudden acceleration that resulted in fatalities and very large recalls, as well as record fines by NHTSA for not reporting the possible flaw promptly.

The government's investigation said that in most cases drivers goofed, pushing the gas instead of the brakes, or both at once, in panic situations, and the automaker has mostly been exonerated because of that "pedal misapplication."

Some gas pedals did stick open, though, because of improper floor mats that trapped the throttle pedal, and a faulty mechanism that caused a few throttle pedals to stick open.

Toyota has settled some acceleration-related lawsuits before they went to public trial.

Toyota issued dealers a "stop sale" order on the cars Thursday after a safety agency in Korea, where Toyotas are sold, reported that padding in some Toyota models with seat heaters might not be fire-resistant enough to pass U.S. regulations.

Toyota notified the National Highway Traffic Safety Administration of the issue, but says it has not yet received a response from NHTSA.

NHTSA did not respond to a request for a comment on the issue. No investigation into the matter showed up at the NHTSA website though a Camry owner complained to the agency that the publicity about the seats made the owner worry about the Camry's safety.