| Carlyle Gaming (CGME) | Summer Wind | BO | 6,127,000 | 4,350,170 | | Pimco Dyn Cr Inc (PCI) | Gross W | O | 123,800 | 2,728,080 |
After the bell on Monday, Casey’s General Stores (CASY   ) announced its fiscal Q1 earnings, posting a strong increase in profits and overall revenues compared to the same time period last year. The Ankeny, IA-based convenience store company announced quarterly revenues of $2.11 billion, which were up from $1.87 billion in last year’s same quarter. Profits for the company came in at $55.71 million, or $1.43 per share, compared to $39.03 million, or $1.01 per share, in last year’s Q1. Both of these figures beat analysts’ estimates, which were EPS of $1.26 on revenues of $2.1 billion. CASY shares were up $1.01, or 1.49%, at market close on Monday. YTD, the stock is up more than 26%.
Currently, there are around seven billion hungry people inhabiting our planet, but that number is forecasted to rise to nine billion by 2040. With populations rising in both developed and emerging markets, producing enough food to feed the world's citizens is becoming a paramount issue and recent events have led to an unprecedented opportunity to play that rising food demand.
That opportunity lies within the potash, nitrogen and phosphate miners and producers.
As one of the largest cartels of potash producers have agreed to disband, the entire fertilizer sector has been thrown into turmoil. That's caused share prices to plummet. For longer term investors, that drop could signal one of the best buying opportunities in decades. SEE: Don't Dismiss Fertilizer A Big Break-Up
The potash sector was hit with a bomb shell as the Belarusian Potash Company (BPC) -a joint venture between Belarus's Belaruskali and Russia's Uralkali- decided that they would end their mining cartel. The group- along with Canada's Canpotex- were responsible for 70% of the world's potash production and worked in tandem to help keep prices for the critical fertilizer from floating too much.
However, with the cartel now ending, potash prices will be subject to more market forces and could dramatically fall in the short term. Analysts now peg that the end of the BPC joint venture could send the price of potash down to the $300 per metric ton range. That's about a $100 drop from current prices and about $540 lower than potash's peak reached in 2009.
Needless to say, stocks within the sector didn't take to the news quite kindly. Leading producers Mosaic (NYSE:MOS) and Potash of Saskatchewan (NYSE:POT) decreased 24.5% and 23%, respective on the news. While several non-potash based fertilizer stocks also saw huge declines as investor's worried about spill-over price decreases in nitrogen and phosphates.
Opportunity Presents Itself
While lower prices for potash and other fertilizers aren't necessarily bullish catalysts for sector, investors shouldn't give up hope. The main reason being that production of the vital feed ingredient is still in the hands of just a few players. Post breakup, 50% of global potash capacity will be controlled by Canpotex- including producer Agrium (NYSE:AGU) -and Uralkali. Canpotex has already signaled that it has no desire to break-up its J.V. That's still a hefty majority of the market controlled by just a few individuals.
Secondly, a tumble in potash prices could also halt several of the numerous global potash project currently on the docket like BHP Billiton's (NYSE:BHP) $14 billion new mine in Saskatchewan. Meanwhile, Uralkali estimates that falling prices will to consolidation among the industry. Stalled projects and rising M&A will eventually help keep supplies low and raise prices.
All of this is in the face of rising long-term demand. Trade group the International Fertilizer Industry Association (IFA) predicts that fertilizer consumption will rise by 11% by 2016. Likewise, researcher Freedonia predicts similar findings. The group predicts that global demand for fertilizers will increase by 3.8% per year through 2014, with the Asia/Pacific region leading that demand. Time To Buy
Given the longer term demand for fertilizer and just how beat-up stocks within the sector are, investors may want to take a look at some of the values now available. Potash of Saskatchewan for example is now sporting a 4.8% dividend yield and P/E of just 11. Likewise, CF Industries (NYSE:CF),which has nothing to do with potash and producers nitrogen/phosphate fertilizers- fell roughly 3% on the BCP break-up news.
Perhaps the best way to profit from all of this is through the Global X Fertilizers/Potash ETF (NASDAQ:SOIL). The ETF tracks 26 different fertilizer focused firms, including the Canpotex trio as well as global players such as Norway's Yara (OTCBB:YARIY). The fund sank roughly 9% the day the BCP news hit the wire. However, it represents the best all-in-one play on the sector given that it covers all areas of fertilizer production and could be the best way to capitalize on the sectors long term rebound. SOIL charges just 0.69% in expenses. SEE: Choosing An Agriculture ETF The Bottom Line
While the Belarusian Potash Company (BPC) cartel's break-up shook the entire fertilizer industry, the long term picture is still rosy. That's helping create some of the best values in the commodity sector today. The previous picks, along with beaten down producers like Terra Nitrogen (NYSE:TNH), make ideal ways to play the sector. Disclosure: At the time of writing, the author did not own shares of any company mentioned in this article.
We know there's a lot of wealth inequality in America. And we know it's been getting worse. But why should anyone care? How does wealth inequality actually effect the economy? And you? I asked Joseph Stiglitz, the Nobel Prize-winning economist, earlier this month. Have a look. (A transcript follows.) Joseph Stiglitz: "The growth of inequality in the United States has weakened demand. Now we made up for that weakening demand, because people at the top don't spend as much of their money as the people at the bottom, who have to spend everything to get by. "We try to offset that by creating a bubble. That's what the Fed did, and one way of interpreting what happened before the crisis, if we had not created the bubble, demand would have been low and the economy would have been weak and the Fed said, 'Let's go ahead, lower interest rates, deregulate, not put any restriction on loan-to-value ratios or anything like that,' and it worked for a while in getting demand up. Top 10 Growth Stocks To Invest In Right Now: Sara Lee Corporation(SLE) Sara Lee Corporation engages in the manufacture and marketing of a range of branded packaged meat, bakery, and beverage products worldwide. Its packaged meat products include hot dogs and corn dogs, breakfast sausages, sandwiches and bowls, smoked and dinner sausages, premium deli and luncheon meats, bacon, beef, turkey, and cooked ham. It also offers frozen baked products, which comprise frozen pies, cakes, cheesecakes, pastries, and other desserts. In addition, Sara Lee provides roast, ground, and liquid coffee; cappuccinos; lattes; and hot and iced teas, as well as refrigerated dough products. The company sells its products under Hillshire Farm, Ball Park, Jimmy Dean, Sara Lee, State Fair, Douwe Egberts, Senseo, Maison du Caf Top 10 Growth Stocks To Invest In Right Now: TrueBlue Inc.(TBI) TrueBlue, Inc. provides temporary blue-collar staffing services in the United States. It supplies on demand general labor to various industries under the Labor Ready brand; skilled labor to manufacturing and logistics industries under the Spartan Staffing brand; and trades people for commercial, industrial, and residential construction, and building and plant maintenance industries under the CLP Resources brand. The company also provides mechanics and technicians to the aviation maintenance, repair and overhaul, aerospace manufacturing, and assembly industries, as well as to other transportation industries under the Plane Techs brand; and temporary drivers to the transportation and distribution industries under the Centerline brand. It primarily serves small and medium-size businesses. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington. Advisors' Opinion: - [By idahansen]
The entire demand labor industry should do well as the US Department of Labor just reported that 169,000 more jobs were added to the American economy. The more work there is, the more demand there is for the services of staffing solutions firms such as Labor SMART, Paychex (NASDAQ: PAYX), TrueBlue (NYSE: TBI), and Robert Half International (NYSE: RHI). - [By Jonathan Yates]
For those looking to invest in real estate stocks, highly recommended is the Dr. Housing Bubble blog. In a recent posting, the "Dr." pointed out that there was a "Lost Generation" when it came to household income. That has not happened for those investing in staffing industry stocks such as Paychex (NASDAQ: PAYX), Robert Half International (NYSE: RHI), TrueBlue, Inc. (NYSE: TBI), and Labor SMART (OTCBB: LTNC). - [By Jonathan Yates]
Even though the stock market rallied on Federal Reserve Chairman Ben Bernanke's remarks with the Dow Jones Industrial Average (NYSE: DIA) and Standard & Poor's 500 Index (NYSE: SPY) surging, the long term winners will be stocks in the staffing industry such as Paychex(NASDAQ: PAYX), TrueBlue (NYSE: TBI), Robert Half (NYSE: RHI), and Labor SMART (OTCBB: LTNC).
Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. The company?s primary product lines include ventricular assist devices, such as HeartMate II, an implantable left ventricular assist device consisting of a rotary blood pump to provide intermediate and long-term mechanical circulatory support (MCS); and HeartMate XVE, an implantable and pulsatile left ventricular assist device for intermediate and longer-term MCS. Its ventricular assist devices also comprise Paracorporeal Ventricular Assist Device, an external pulsatile ventricular assist device, which provides left, right, and biventricular MCS approved for bridge-to-transplantation (BTT), including home discharge, and post-cardiotomy myocardial recovery; and Implantable Ventricular Assist Device, an implantable and pulsatile ventricular assist device designed to provide left, right, and biventricular MCS approved for BTT comprising hom e discharge, and post-cardiotomy myocardial recovery. The company also provides CentriMag, an extracorporeal full-flow acute surgical support platform that offers support up to 30 days for cardiac and respiratory failure. In addition, it offers PediMag and PediVAS extracorporeal full-flow acute surgical support platforms designed to provide acute surgical support to pediatric patients. The company sells its products through direct sales force in the United States, as well as through a network of distributors internationally. Thoratec Corporation was founded in 1976 and is headquartered in Pleasanton, California. Top 10 Growth Stocks To Invest In Right Now: Waste Management Inc.(WM) Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas. Advisors' Opinion: - [By John Persinos]
One dominant company in the handling, treatment, and disposal of solid waste is Waste Management (WM). With this industry leader, investors are paying for market dominance, relative predictability, good dividends, and high cash flow. - [By Jonas Elmerraji]
Investors think Waste Management (WM) is a garbage stock right now. Why else would WM's short interest ratio hover around 12.6? Of course, Waste Management is in fact a garbage stock of sorts -- it is the largest waste management service provider in the country. The firm boasts more than 270 landfills and a massive fleet of trash collection vehicles that spans the U.S. When I think garbage firms, the first thing that comes to mind is dividends: WM and its peers historically have generous, recession-resistant dividend payouts. Currently, Waste Management's yield adds up to 3.36% annually. Don't forget, dividends are like kryptonite to short sellers. WM's willingness to embrace innovation has big potential in the years ahead. Right now, the firm's portfolio includes 22 waste-to-energy plants that are designed to turn the waste that WM literally gets paid to collect into renewable energy that the firm gets paid for again. At this point, the firm's energy plants make up a very small part of its total business, but waste-to-energy projects and the recent acquisition of small oil service firms should look attractive to investors right now. Earnings in two months look like the next big catalyst for a short squeeze in WM.
Top 10 Growth Stocks To Invest In Right Now: Checkpoint Systms Inc.(CKP) Checkpoint Systems, Inc. manufactures and markets identification, tracking, security, and merchandising solutions for the retail and apparel industry worldwide. The company operates in three segments: Shrink Management Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. The Shrink Management Solutions segment provides shrink management and merchandise visibility solutions. It offers electronic article surveillance systems, such as EVOLVE, a suite of RF and RFID-enabled products that act as a deterrent to prevent merchandise theft in retail stores; and electronic article surveillance consumables, including EAS-RF and EAS-EM labels that work in combination with EAS systems to reduce merchandise theft in retail stores. This segment also provides keepers, spider wraps, bottle security, and hard tags, as well as Showsafe, a line alarm system for protecting display merchandise. In addition, it offers physical and electronic store monitoring solutions, incl uding fire alarms, intrusion alarms, and digital video recording systems for retail environments; and RFID tags and labels. The Apparel Labeling Solutions segment provides apparel labeling solutions to apparel retailers, brand owners, and manufacturers. It has Web-enabled apparel labeling solutions platform and network of 28 service bureaus located in 22 countries that supplies customers with customized apparel tags and labels. The Retail Merchandising Solutions segment offers hand-held label applicators and tags, promotional displays, and queuing systems. The company serves retailers in the supermarket, drug store, hypermarket, and mass merchandiser markets through direct distribution and reseller channels. Checkpoint Systems was founded in 1969 and is based in Thorofare, New Jersey. Top 10 Growth Stocks To Invest In Right Now: CNO Financial Group Inc. (CNO) CNO Financial Group, Inc., through its subsidiaries, engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company markets and distributes Medicare supplement insurance, interest-sensitive and traditional life insurance, fixed annuities, and long-term care insurance products; Medicare advantage plans through a distribution arrangement with Humana Inc.; and Medicare Part D prescription drug plans through a distribution and reinsurance arrangement with Coventry Health Care. It also markets and distributes supplemental health, including specified disease, accident, and hospital indemnity insurance products; and life insurance to middle-income consumers at home and the worksite through independent marketing organizations and insurance agencies. In addition, the company markets primarily graded benefit and simplified issue life insurance products directly to customers through television advertising, direct mail, Internet, and telemarketing. It sells its products through career agents, independent producers, direct marketing, and sales managers. CNO Financial Group, Inc. has strategic alliances with Coventry and Humana. The company was formerly known as Conseco, Inc. and changed its name to CNO Financial Group, Inc. in May 2010. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana. Advisors' Opinion: - [By David Fried, Editor, The Buyback Letter]
Insurance holding company CNO Financial Group (CNO) and its insurance subsidiaries��rincipally Bankers Life and Casualty Company, Washington National, and Colonial Penn Life Insurance Company��erve pre-retiree and retired Americans.
Top 10 Growth Stocks To Invest In Right Now: Buffalo Wild Wings Inc.(BWLD) Buffalo Wild Wings, Inc. engages in the ownership, operation, and franchise of restaurants in the United States. The company provides quick casual and casual dining services, as well as serves bottled beers, wines, and liquor. As of July 26, 2011, it had 773 Buffalo Wild Wings locations in 45 states in the United States, as well as in Canada. The company was founded in 1982 and is headquartered in Minneapolis, Minnesota. Advisors' Opinion: - [By CNBC]
Tony Tribble, Invision/AP Forget about Bloomin' Onions or boneless wings, for many consumers, the choice of where to dine often comes down to a different factor: which restaurant has the best booze. "Alcoholic beverages can be a key driver of traffic, differentiation, and loyalty," said David Decker, president of Consumer Edge Insight. According to the firm, two factors that keep customers coming back are "selection" and "pricing." Consumer Edge Insight recently surveyed restaurant customers to find out which casual-dining spots generated the most loyalty with their alcoholic beverages. Taking the top spot for "selection" was Buffalo Wild Wings (BWLD), with 29 percent of those surveyed saying they were "most likely to visit it most often due to its good selection of alcoholic beverages." Applebee's (DIN) took the second spot, with 24 percent, and Outback Steakhouse (BLMN) and T.G.I. Friday's tied for third place with 22 percent each. Prices also keep customers coming back to Buffalo Wild Wings. When asked which casual-dining brand they were "most likely to visit most often due to its good prices of alcoholic beverages," Buffalo Wild Wings came out on top with 30 percent. Chili's (EAT) was No. 2 at 23 percent, and Ruby Tuesday (RT) was third with 22 percent. Buffalo Wild Wings has always made alcohol a part of its experience, even making it part of its tagline: "Wings.Beer.Sports." The chain is the No. 1 account for more than 50 different beer brands and recently launched Game Changer, a new beer in a partnership with Redhook Brewery. Priced between cheaper domestic lagers and pricier craft beers, Game Changer became the fourth-most-popular draft beer at company-owned locations within two weeks of its release. "Among casual-dining restaurants, Buffalo Wild Wings is seeing the greatest positive effect in terms of building customer loyalty with its alcohol offerings," Decker said. "There are many steps other restaurants can take to improve their alcoho
Top 10 Growth Stocks To Invest In Right Now: Eastern Insurance Holdings Inc.(EIHI) Eastern Insurance Holdings, Inc., through its subsidiaries, provides workers compensation insurance and reinsurance products in the United States. The company?s Workers Compensation Insurance segment provides traditional workers compensation insurance coverage products, including guaranteed cost policies, policyholder dividend policies, retrospectively-rated policies, deductible policies, and alternative market products to employers. This segment distributes its workers? compensation products and services through its independent insurance agents primarily in Pennsylvania, Delaware, North Carolina, Maryland, Indiana, and Virginia. Its Segregated Portfolio Cell Reinsurance segment offers alternative market workers compensation solutions comprising program design, fronting, claims administration, risk management, segregated portfolio cell rental, asset management, and segregated portfolio management services to individual companies, groups, and associations. Eastern Insurance Holdings, Inc. is headquartered in Lancaster, Pennsylvania. Advisors' Opinion: - [By Lauren Pollock]
ProAssurance Corp.(PRA) agreed to acquire Eastern Insurance Holdings Inc.(EIHI) for about $205 million, expanding the insurance company’s casualty insurance offerings. Eastern Insurance is a domestic casualty insurance group specializing in workers’ compensation products and services, among other things. ProAssurance plans to pay $24.50 in cash for each outstanding Eastern share, a 16% premium over Monday’s closing price.
Top 10 Growth Stocks To Invest In Right Now: Intuitive Surgical Inc.(ISRG) Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Its da Vinci surgical system consists of a surgeon?s console or consoles, a patient-side cart, a 3-D vision system, and proprietary ?wristed? instruments. The company?s da Vinci surgical system translates the surgeon?s natural hand movements on instrument controls at the console into corresponding micro-movements of instruments positioned inside the patient through small puncture incisions, or ports. It also manufactures a range of EndoWrist instruments, which incorporate wrist joints for natural dexterity for various surgical procedures. Its EndoWrist instruments consist of forceps, scissors, electrocautery, scalpels, and other surgical tools. In addition, it sells various vision and accessory products for use in conjunction with the da Vinci Surgical System as surgical procedures are performed. The company?s accessory products include sterile drapes used to ensure a sterile field during surgery; vision products, such as replacement 3-D stereo endoscopes, camera heads, light guides, and other items. It markets its products through sales representatives in the United States, and through sales representatives and distributors in international markets. The company was founded in 1995 and is headquartered in Sunnyvale, California. Advisors' Opinion: - [By Joseph Hogue]
Enter Intuitive Surgical (Nasdaq: ISRG) and Da Vinci, a robotic arm that allows surgeons to operate with just a single incision less than an inch in size. - [By Holly LaFon] tive Surgical is the maker of the da Vinci Surgical System, a breakthrough in robotic-assisted minimally invasive surgery. It provides technology and procedural innovation across cardiac, thoracic, urology, gynecologic, colorectal, pediatric and general surgical disciplines and allows patients to recover in record time.
In the last year, this fast-growing company�� stock has surged 66% to $529.54. Its revenue over the last ten years has grown at a rate of 38%, and it grew 24.5% last year with 72.5% gross profit and 39.5% operating margin. The company expects fiscal 2012 revenue growth of 17-19%. The da Vinci System is new technology first introduced to market in July 2000 after the US FDA approved it for laparoscopic surgery. Its new S model was released in April 2009. Already there are more than 1,933 systems installed in over 1,560 hospitals worldwide. Apple Inc. (AAPL) Apple Inc. is the maker of popular consumer products such as the Mac, iPod, iPhone and iPad. Its stock has famously increased 569% over the past five years to hit a record of $600 per share last week. Apple has split its stock 2 for 1 three times in the past on June 15, 1987, June 21, 2000 and February 28, 2005. CEO Tim Cook said as recently as this morning that the company saw little reason to that a split would help the stock but if it was in the best interest of shareholder the company would have one. The company also announced this morning that it would initiate a $2.65 per share quarterly dividend and buy back up to $10 billion of its common stock. In the last ten years, Apple�� annual growth rate for revenue was 34.5%, EBITDA 112.4% and book value 36.3%. Free cash flow increased 11% in the last five years and 58% in the last year. The rapidly growing company still has a relatively low P/E ratio of 16.68. Google Inc. Cl A (GOOG) Google Inc. is the search engine company founded in 1998 that has expanded to offer dozens of advertising and web ser - [By John Udovich]
Yesterday, small cap medical robotics stock MAKO Surgical Corp (NASDAQ: MAKO) soared 82.19% after it was announced that Stryker Corporation (NYSE: SYK) would acquire it���meaning it might be time to take a closer look at large cap medical robotics leader Intuitive Surgical, Inc (NASDAQ: ISRG) along with small caps Accuray Incorporated (NASDAQ: ARAY) and Hansen Medical, Inc (NASDAQ: HNSN). MAKO Surgical Corp�markets both its RIO Robotic Arm Interactive Orthopedic System and proprietary RESTORIS family of implants to surgeons for a procedure called MAKOplastythat provides a less invasive method for knee resurfacing and a new procedure for Total Hip Arthroplasty.�Stryker Corporation, whose medical technologies include reconstructive, medical and surgical, and neurotechnology and spine products, agreed to pay $1.65 billion or $30 a share for a massive 86%�premium for MAKO Surgical Corp. That�� sounds great for investors unless you are an investor who go in the stock back in 2011 and early 2012 when shares hit as high as the�$43 level.
Top 10 Growth Stocks To Invest In Right Now: Nordstrom Inc.(JWN) Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It offers a selection of brand name and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey? boutiques, treasure & bond, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog. Nordstrom also provides a private label card, two Nordstrom VISA credit cards, and a debit card for Nordstrom purchases. The company?s credit and debit cards feature a shopping-based loyalty program. As of September 30, 2011, it operated 222 stores, including 117 full-line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure & bond store, and 1 clearance store in 30 states. The company was founded in 1901 and is based in Seattle, Washington. Advisors' Opinion: - [By Ben Levisohn]
JC Penney’s gain is all the more surprising consider what’s happened to other retailers today. Macy’s (M) has dropped 0.8% to $43.83, Kohl’s (KSS) has dipped 0.4% to $50.16 , Dillard’s (DDS) has fallen 2% to $76.19 and Nordstrom (JWN) has declined o.6% to $56.98. - [By Paul Ausick]
Wal-Mart Stores Inc. (NYSE: WMT), Macy�� Inc. (NYSE: M), Kohl�� Corp. (NYSE: KSS), and Nordstrom Inc. (NYSE: JWN) have all already reported poor quarterly results that barely met expectations in most cases. There�� no reason to expect anything substantially different this week, except perhaps from Home Depot, which has history of being cautious with its estimates. - [By Marshall Hargrave]
Worth noting is that the average remaining tenure for the Calvin Klein licenses is eight to nine years. Other tailwinds for GIII include: The team sports business is now a $100 million business and was nonexistent 5 years ago. Sales makeup is 50% sportswear and 50% coats. We see this business continuing to grow as the overall popularity of sports teams continues.Dresses from Eliza J continue to be a top seller at Nordstrom's (JWN) and other high-end retailers.Ivanka Trump showrooms will be opening in Q4. The line will be launching dresses, suit separates and swimwear.The biggest business for GIII remains outerwear and the company started shipping product at the end of Q2. GIII has approximately 30 licensed, owned and private label brands and a covers the entire spectrum of retailers from mass market to luxury.Vilebrequin was acquired in August of last year and the addition helped grow non-licensed revenues to $70 million in Q2 compared to $48 million last year without Vilebrequin. Vilebrequin sells swimwear, resort wear and related accessories through a network of company-owned and franchised shops. To grow Vilebrequin, the company will be adding footwear to its shops, in particular flip-flops in all of the stores by November. The company is planning to grow Vilebrequin's presence in the U.S. and has been adding buildouts in key department stores. Furthermore, Vilebrequin's e-commerce site should be live in the next 60 days.GIII's entry into the footwear market is well in line with its long-term plans to become a men's and women's head-to-toe apparel maker.
 LPL Financial LLC today announced that it is launching a consulting group designed to help large affiliated advisory firms become more strategic and attain higher profitability. The biggest independent broker-dealer in the country, LPL has comprises 13,400 financial advisers and 700 financial institutions. It has established the Enterprise Management Consulting program to help its so-called “large enterprises” — collections of independent advisory practices that generate at least $5 million in annual revenue — manage their practices, and formulate and execute business strategy. The consulting team, led by Sal Zambito, LPL's senior vice president of business consulting, will work with executives of the affiliated firms to increase growth by improving financial management, operational efficiency and organizational design. In a statement, Mr. Zambito said that the initiative will “add maximum value to [affiliated firms'] underlying advisers' practices, and to do so in a scalable fashion.” LPL's Enterprise Management Consulting group will operate in partnership with The Ensemble Practice, a management consulting firm specializing in the investment advice sector. The LPL initiative will help its affiliated advisory firms set strategic goals, according to Derek Bruton, LPL's managing director. “Our large enterprise consulting model allows them the opportunity to truly focus on important C-level thinking and decision making in order to achieve the highest potential for their firms and the advisory practices they support,” Mr. Bruton said in a statement.
The complex deal between two culturally divergent companies; Arabtec, the UAE contractor, and South Korea's Samsung Electronics, seems to truthfully reflect the universality of the new digital age, writes Frank Kane, of The National. Hasan Ismaik strained to lift the 14-kilogram golden falcon statue, but once it was safely handed over it must have been a weight off his mind. The chief executive of Arabtec has spent many months in negotiations over a deal between the UAE contractor and his counterpart at South Korea's Samsung Engineering. A memorandum of understanding was announced in April for a joint venture between the two, but such complex international corporate deals can often run aground on financial, management, or cultural detail. As if to symbolize the cultural differences between the two, the gift handed over in exchange for the glitzy falcon was a finely worked sculpture of a crane—the bird, not the engineering equipment—a Korean symbol of longevity. Park Choong Heum, the chief executive of Samsung's engineering business, said that he hoped the crane would symbolize the enduring nature of the deal. For Mr. Ismaik, the venture with Samsung is a transformational event. "Samsung has 20 years' track record, they are number one in engineering. We have to learn from them," he said at the formal signing ceremony in Samsung Engineering's headquarters in Seoul. If he wanted to learn how to manage corporate change, he came to the right place. In a few decades Samsung has transformed itself from a South Korea-focused chaebol (family conglomerate) into a global player at the highest level. Thanks to its digital electronics business, it has also become one of the world's cool brands, rivaling the western trendsetters Apple and Google for technological innovation. Under Mr. Ismaik, Arabtec is also undergoing a transformation. As a building contractor, it was involved in some of the big projects that shaped the modern image of the UAE, but it fell on tough times in the financial crisis. New owners, in the shape of Abu Dhabi's Abaar Investments, itself owned by the International Petroleum Investment Company, headed by Sheikh Mansour bin Zayed, decided a change of business direction was needed. Instead of the traditional focus on apartment blocks and villas in the UAE, Mr. Ismaik decided on a bold new strategy to capitalize on Arabtec's expertise in construction, by moving upscale into big engineering and infrastructure projects in the booming oil-driven economies across the Middle East. He told The National: "While the construction industry has returned to growth, which we expect to continue for the next seven to ten years, Arabtec is pursuing a growth strategy that also includes opportunities for expansion in oil and gas, power, infrastructure, as well as affordable housing." That transformation involved replacing the old Arabtec management and hiring a new team to implement it, as well as a rights issue that raised US$640 million from existing shareholders in July. One important hiring was that of Shohidul Choudhury, formerly an investment banker at Deutsche Bank and Goldman Sachs, as head of Arabtec's mergers and acquisition unit. Skeptics who questioned the appointment of an M&A specialist to a building group missed the point: Arabtec was to be transformed strategically, corporately, and financially. An investment banker's skill would be essential in that process. Mr. Choudhury was closely involved in the intricate negotiations between Arabtec and Samsung that paved the way for the recent ceremony in Seoul. Mr. Choudhury said: "Five years ago, the growth was in construction of leisure, housing, and retail projects, but now there is lots more competition and lower growth in these sectors. The margins are better in engineering, procurement, and construction, and there is a huge need for infrastructure across the region. We'll be looking at big ticket projects, upwards of $1 billion, and there are plenty of those out there, especially in petrochemicals and refineries, across the GCC region." He added that lots of projects were being revived in the UAE, Saudi Arabia, Qatar, Kuwait, and Oman. The next phase of Arabtec's transition will consist of another joint venture agreement, this time in infrastructure projects, with a "similarly prestigious" name like Samsung, Mr. Choudhury said. He explained that, with the proceeds of the rights issue possibly bolstered by another call on equity holders, and a potential $450m available in the bond markets, Arabtec would have no need for further fundraising. "We are net cash positive and cash-rich at the moment. We've just hired two new treasurers to manage it," Mr. Choudhury said. In five years' time, and if all goes to plan on the Ismaik timetable, Arabtec will be a construction, engineering, and infrastructure conglomerate, with a strong business in facilities management. It will be Middle East-based, but strong enough to look outside the region, possibly to Russia or Central Asia. As Mr. Choudhury said: "We'll move out of simple pouring of concrete into higher growth areas." If that strategy is fulfilled, the launch of Arabtec-Samsung Engineering will be seen in retrospect as a major advance, and the Seoul ceremony as something of a historic occasion. Read more from The National here…
 It’s hard to believe how much the US natural gas production picture has changed since 2005. Instead of the inexorable decline forecast at the time, we have an epic boom that will soon make the US a major natural gas exporter. In this week’s issue of The Energy Strategist I will be taking a close look at the companies planning to ship liquefied natural gas (LNG) overseas. Today I will provide some background on the events that brought the US from the point of building LNG import terminals just a few years ago to this month’s approval of the fourth LNG export permit. Natural gas production had peaked in the early 1970s, and following a production resurgence that began in the mid-1980s and ran for 15 years, output was once more on the decline.  Predictions of a further catastrophic drop in supply weren’t uncommon, and oil companies began to pay premiums for natural gas producers in the belief that much higher natural gas prices were inevitable. And in fact, average annual natural gas prices hit new record highs in 2003, 2004 and 2005. It was clear that the US would need LNG import terminals to avoid the pending shortfalls in domestic natural gas production, and US gas imports were projected to surpass 8 billion cubic feet per day by 2010. Cheniere Energy (NYSE: LNG) saw an opportunity and began to build LNG import terminals, signing up customers like Total and Chevron to 20-year option contracts to import LNG. But the late Texas oil man (and fellow Texas A&M alum) George P. Mitchell was quietly working on something that would ultimately prove to be one of the most significant developments in the 150-year history of the modern oil industry. The technique of hydraulic fracturing, or “fracking” had been around since the la! te 1940s and had been used extensively on oil and gas wells across traditional oil-producing regions like Texas and Oklahoma. Fracking involves pumping water, chemicals and sand down an oil or gas well under high pressure to break open channels in the reservoir rock. The sand is there to hold those channels open, allowing the oil (or natural gas) to flow to the well bore. Likewise, horizontal drilling was invented decades ago and had been widely utilized in the industry since the 1980s. As its name implies, horizontal drilling involves drilling down to an oil or gas deposit and then turning the drill horizontal to the formation to access a greater fraction of the deposit. George Mitchell’s company Mitchell Energy (now part of Devon Energy (NYSE: DVN)) successfully married these two techniques after years of trial and error, making it economical for the first time to produce oil and gas in many of the nation’s shale formations. His success is evident if we extend the previous graphic to 2012:  Note that I had to change the scale, because the previous 1971 production peak was obliterated in 2011 as US gas production began to rise at rates that would have been unimaginable 10 years earlier. This shale gas revolution turned natural gas producers like Chesapeake Energy (NYSE: CHK) into household names, while Cheniere was pushed to the edge of bankruptcy as interest in LNG imports vanished. Cheniere’s share price fell from $40 to just over $1. But Cheniere evolved with the changing marketplace, and decided to turn its LNG import facility into an LNG export terminal. And because the company had steel in the ground and had already traversed the permitting process, it had a significant lead on competitors. Investors came around to the view that Cheniere was on the right track with this change of strategy, and equity investments came pouring in. New contracts were signed with Total, Korea Gas, India’s GAIL, Spain’s Fenosa and Centrica in the UK. Cheniere was a first mover, and in 2012 became the first company to obtain approval from the Federal Energy Regulatory Commission (FERC) to export LNG to to countries that lack a Free Trade Agreement (FTA) with the US. But other companies are rushing to catch up. This month Dominion Resources (NYSE: D) became the fourth company to win approval from the Department of Energy for a non-FTA license to export LNG from its Dominion Cove Point LNG facility on Maryland’s Chesapeake Bay. (Dominion still requires approval from FERC.) This latest approval is still merely the tip of the iceberg. In this week’s Energy Strategist, I will explain the LNG permit approval process, discuss the economics of LNG, investigate whether the US natural gas supply situation may be overstated and detail the companies that have gotten approval or are in the process of getting approval to export LNG. (Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)
NEW YORK (TheStreet) -- The broader markets ripped to all-time highs when the Federal Reserve announced it would not cut back on any of its bond-buying efforts. On CNBC's "Fast Money" TV show, Brian Kelly said he was surprised the Fed decided not to taper and noted the central bank is concerned about the fiscal drag on the economy from the sequestration. Dan Nathan said the market move was a knee-jerk reaction higher, but he doesn't necessarily want to chase the move. At the same, he argued the breakout to new highs was quite powerful. Guy Adami said that at some point the lack of earnings growth will come into play. He still thinks a short Caterpillar (CAT) position works. Mike Khouw expected there to be no tapering because of the poor economic data. He added that stocks no longer look cheap, especially when the economy is not growing, because that means there's no top-line growth. Gold also jumped on the Fed news and Kelly said investors can continue to own the yellow metal. Seymour argued that the rally in gold is getting long in the tooth and this is one more move traders are chasing and will eventually get stung. Tom Lee, chief U.S. strategist at J.P. Morgan, said Wednesday's move proves investors were underweight equities. He added that the Fed's decision will likely set the market up for the rest of the year and likes tech, financials and healthcare. He concluded that investors feel more comfortable in the market with the Fed's accommodation. Housing starts are up and housing permits are down, according to the most recent data for August. Kelly said home building might start to pick up and Seymour said the data seem good. However, he is looking to fade the recent move higher. Khouw concurred that fading the homebuilders was a good trade. He added that these stocks are very interest rate-sensitive and the valuations are "far from cheap." Oracle (ORCL) reported earnings, and Nathan said the stock is a buy near $30 or $31. Adami said the guidance was lousy and likes the $31.50 level for longs, but warned that if that level doesn't hold, it could head much lower. Apple (AAPL) was the first stock on the show's "Trending Trades," and Nathan said the iPhones received very good reviews on Wednesday. He thinks next week's data regarding the sales for these units will be the next big catalyst. Take-Two Interactive (TTWO) recently released the videogame "Grand Theft Auto V." Khouw said the stock is pretty close to fair value. Priceline.com (PCLN) hit $1,000 per share, and Adami said the stock is not that expensive on a valuation basis. He added that investors could stay long. Kelly called the utility sector the "safe haven" of stocks for two reasons: the strong dividends and lower interest rates, the latter of which will making borrowing cheaper. Jens Nordvig, global head of currency strategy and co-head of global markets research Americas at Nomura Securities, was a guest on the show and said he was very surprised by the Fed's action. He added the move will hurt the value of the U.S. dollar and emerging market currencies would be good buys. He concluded he likes, Mexican, Brazilian and Malaysian currencies. Starbucks (SBUX) hit an all-time high Wednesday. Adami said while he likes the stock, Dunkin' Brands (DNKN) is giving investors the most bang for the buck. Seymour said that even though Starbucks may seem expensive, its future growth and international expansion justifies it. Seymour said there's still a lot of money on the sidelines that will go towards emerging markets, but he doesn't want to chase the recent move higher. Kelly concurred that buying emerging markets on Thursday would be tough, but said he would rather buy the iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) at this point. Adobe Systems (ADBE) was the first stock on the show's "Pops & Drops" segment. Adami said longs should take profits and that traders shouldn't chase the stock, since it has limited upside from here. Electronic Arts (EA) fell 2%. Nathan said investors don't need to chase it since it's up 85% year to date, but those already long can use $26 as their stop-loss. Dollar Tree (DLTR) jumped 3% and Kelly said investors should take profits. Pandora (P) popped another 2% and Seymour said he would avoid the name. AvalonBay Communities (AVB) was up 4% and Khouw said he would take profits based on valuation. For their final trades, Kelly said to buy gold and Adami was buying Nucor (NUE). Khouw was a buyer of Deere (DE) and a seller of Caterpillar as a pairs trade and Nathan took profits in General Electric (GE). -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell Follow TheStreet.com on Twitter and become a fan on Facebook. Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.
The ultra-popular coffee chain Starbucks (SBUX) has announced a new Group President for Global Business Services. The hire comes from within, as CFO Troy Alstead has been given the new title, while still maintaining his CFO position. Alstead has been a member of the Starbucks team since 1992; a time when the company was private and had just 100 stores. Over his two decade tenure he held a number of financial and managerial positions and was also an original member of the Starbucks International team. Alstead will look to continue to contribute to the firm’s strong success, as its stock currently sits just below its all-time high. Though the company suffered a slight drawback in early 2012, it has gotten back on track and pushed to new levels. Starbucks shares were up 80 cents, or 1.05%, upon Tuesday’s close. The stock is up over 40% this year alone.
A friend of mine recently tried to purchase a home in Northern California. He gave up after a year of trying. Few homes were available for sale, and those on the market were quickly snatched up by investors paying all cash. This is becoming more common. In June, nearly 70% of for-sale homes received multiple offers, up from 50% two years ago, according to Redfin. Nationwide home prices are up 12% from a year ago. Some regions have enjoyed 20% growth. This is way above what anyone should expect real estate to gain in the long run. And it's a product of one simple fact: The supply of homes for sale was recently at the lowest level since the housing bubble last decade. In a healthy real estate market, enough homes will be on the market to supply about six months of sales activity. Earlier this year, supply dropped all the way to 3.9 months, or the lowest since 2004. But things are changing. Supply is ramping up again, now running at 5.2 months' of sales:  Keep an eye on this. Rising supply almost certainly means growth in home prices will cool off. This should come as no surprise -- no one should have expected prices to keep growing at more than 10% per year. The question is how high supply might go. Three forces will guide its direction. 1. Owners gaining positive equity. 2.5 million homeowners regained positive equity -- meaning their home is worth more than they owe on the mortgage -- in the second quarter, according to CoreLogic. Some of these homeowners have been itching to sell for years and just now have the opportunity. But judging how many will do so is difficult. Even homeowners who once wanted to sell and move might opt to stay put even with positive equity. It's a wild card. 2. Homebuilders adding to supply. Homebuilders recently discovered something that's been elusive for years: the ability to raise prices. The balance they now need to strike is how much to ramp up supply versus holding back supply to maximize prices. PulteGroup (NYSE: PHM ) CEO Richard Dugas said earlier this year: "In a number of communities across the country, demand has been so strong that we have taken action to slow the overall pace of sales." But some may have a hard time ramping up supply even if they want to. As The Wall Street Journal noted last week: Most builders responding to a recent survey released Wednesday by the National Association of Home Builders noted that lots ready for construction remain in short supply, and that scarcity is among the chief factors hindering the housing recovery. Homebuilding CEOs have been clear in recent conference calls: There are far too few homes given demographic demand. As Lennar (NYSE: LEN ) CEO Stuart Miller put it, "The bottom line is that there are too few dwellings for a growing population and for normalized household formation." 3. Pent-up household formation demand
21.6 million Americans age 18-31 live with their parents, according to Pew Research Center. That's a record, and up from 18.5 million in 2007. There are two ways to look at this: Either it's a new normal that reduces long-term demand for housing, or it's a short-term function of the Great Recession that will return to normal once the economy picks up. I'd bet on the latter. And when jobs growth returns and household formation picks up -- it's still below its long-term trend -- demand for homes will rise as well. Like so many other statistics, the glut of young people living in their parents' basements is both depressing and a reminder of how far things have to go before we're back to normal. From more on what to expect from the housing market in the long run, see here. 
The Dow Jones Industrial Average (DJINDICES: ^DJI ) continues to amaze. After going on a run of record-breaking days back in the spring, than tanking and losing nearly 5%, the market has once again reversed course and is back to its old ways of setting record highs on a consistent basis. On Monday and Thursday, the Dow set new all-time closing highs, while also setting a new all-time intraday high on Thursday. For the week, the blue-chip index closed higher by 79 points, or 0.51%, and now sits at 15,543. The S&P 500 had a slightly better week, gaining 0.7%, but the Nasdaq lost ground over the past five trading sessions, as it ended the week down 0.34%. Before we hit the Dow losers, let's look at this week's best performing component. Bank of America (NYSE: BAC ) increased by 7.03% for the week after the company released strong earnings and got an upgraded price target from UBS. Nearly all of the banks that have reported results up to this point have impressed investors, and Bank of America certainly fell into that category. UBS believes Bank of America can continue to improve earnings if it remains diligent on cost controls. That's a great sign that the company can continue showing strong profits despite whatever pace the economy recovers at. Best Performing Companies To Watch For 2014: LSL PROPERTY SERVICES PLC ORD GBP0.002 WHEN ISSUED(LSL.L) LSL Property Services plc provides residential property services to private consumers and mortgage lenders in the United Kingdom. It offers estate agency and related services, including the sale and letting of housing; operation of a network of high street branches; provision of repossession asset management services; and sale of mortgages, and life assurance and critical illness policies to insurance companies, lenders, and financial intermediaries. The company also provides surveying services to lenders for residential mortgage purposes; and valuation services to private house purchasers. In addition, it offers panel management and property management services, as well as advice on mortgages and non-investment insurance products. The company operates surveying and valuation business under the e.surv Chartered Surveyors and Barnwoods brands; and estate agency, financial services, and asset management businesses under the Your Move, Reeds Rains, LSLi, Marsh & Parsons, Inte rcounty, Frosts, JNP, Goodfellows, and Davis Tate, as well as LSL Corporate Client Department, St Trinity Asset Management, Templeton LPA, First Complete, The Mortgage Alliance, Pink Home Loans, Linear Financial Services brands. It operates a network of 568 estate agency branches. LSL Property Services plc is based in Newcastle upon Tyne, the United Kingdom. Best Performing Companies To Watch For 2014: Physicians Formula Holdings Inc.(FACE) Physicians Formula Holdings, Inc. develops, markets, and sells cosmetic and skin care products for the mass market channel. Its cosmetic products include face powders, bronzers, concealers, blushes, foundations, eye shadows, eyeliners, mascaras, and brow makeup; and skin care products comprise cleansers, moisturizers, and treatments. Physicians Formula Holdings, Inc. sells its products to various retailers in the food retail, drug chain, mass volume, specialty retail, and wholesale channels in the United States, Canada, Australia, South Africa, Turkey, Mexico, El Salvador, and Panama. The company, formerly known as PFI Holdings Corp., was founded in 2003 and is based in Azusa, California. Advisors' Opinion: - [By CRWE]
Physicians Formula Holdings, Inc. (Nasdaq:FACE) reported that it has received an unsolicited, nonbinding proposal to acquire all its outstanding shares of common stock at a price of $4.90 per share, subject to several conditions, including the completion of due diligence and securing of financing commitments by the third party who submitted the proposal and the negotiation of a mutually acceptable definitive agreement
Shaw Communications Inc., a diversified communications company, provides broadband cable television, Internet, digital phone, telecommunications, and satellite direct-to-home (DTH) services primarily in Canada and the United States. It offers cable television services, including analog and digital video services with access to HD channels, premium and VOD channels, music channels, and an interactive program guide. The company provides high speed Internet access services to residential and small business subscribers, as well as various Internet services for small and medium sized business customers. Its digital phone services include local and long distance calling, as well as calling features. The company also manages fiber network that serves as the primary Internet backbone for its broadband Internet customers, and provides Internet, data, and voice connectivity services to large and medium businesses, and other organizations. In addition, it distributes digital video an d audio signals to residences and businesses; and redistributes television and radio signals via satellite to cable and other operators, as well as provides uplink and network management services for conventional, specialty, and pay broadcasters on a contract basis. Further, the company provides satellite tracking and messaging services to the trucking industry, as well as integrates and manages satellite data networks with land-based telecommunications; and owns and leases satellite transponders that receive and amplify digital signals and transmit them to receiving dishes located within the footprint covered by the satellite. It serves approximately 3 million customers. The company was formerly known as Capital Cable Television Co. Ltd. Shaw Communications was founded in 1966 and is based in Calgary, Canada. Advisors' Opinion: - [By Lisa Springer]
Shaw Communications (NYSE: SJR) is a diversified Canadian communications and media business. The company provides broadband cable and high-speed Internet services to more than 3.4 million customers and operates one of the largest TV networks in Canada. In the first fiscal quarter of 2013 ended last Novemeber, Shaw's earnings improved 16% to 50 cents a share, compared with the same period the previous year. The company raised its dividend 5% in January 2012. Shaw shares currently yield about 4.5%
Best Performing Companies To Watch For 2014: Boart Longyear Ltd (BLY.AX) Boart Longyear Limited provides drilling services, drilling equipment, and performance tooling for mining and drilling companies worldwide. The company operates through two divisions, Global Drilling Services and Global Products. The Drilling Services division provides a range of drilling services, including surface and underground coring, multi-purpose, reverse circulation, conventional air/mud rotary, flooded reverse, directional, sonic, and percussive production drilling to mining companies, energy companies, water utilities, environmental and geotechnical engineering firms, government agencies, and other mining services companies. This division provides drilling services for the exploration, development, and production of copper, gold, iron ore, nickel, and other metals and minerals. It conducts drilling services in approximately 40 countries in North America, South America, Asia, the Pacific Rim, Europe, and Africa. The Global Products division designs, manufactures, and sells drilling equipments and tooling. This division offers drilling equipment, drill rods, diamond bits, wireline core extraction systems, reverse circulation pipe and accessories, overburden tooling, pneumatic rock drills, rock drilling rods, and bits for various industries, such as mineral exploration, mining, energy, environmental sampling, and remediation, as well as infrastructure reinforcement and development. It provides mining products in approximately 100 countries. Boart Longyear Limited is headquartered in South Jordan, Utah. Best Performing Companies To Watch For 2014: KSK POWER VENTUR PLC ORD GBP0.001(KSK.L) KSK Power Ventur plc, through its subsidiaries, engages in the development, operation, and maintenance of power generation assets primarily in India. The company develops and operates coal, gas, and lignite based power plants, as well as hydro electric power plants and wind farms. It has an operating capacity of approximately 933 mega watts. The company is also involved in identification, acquisition, development, beneficiation, and trading of coal and lignite reserves. In addition, it acts as an investment manager to third party funds for investments in energy businesses. KSK Power Ventur plc was founded in 1998 and is based in Douglas, the United Kingdom.
Under Armour (NYSE:UA) has made significant strides in catching up to industry powerhouses Nike (NYSE:NKE) and Adidas (ADDYY.PK) over the last decade. With a large market share in the U.S., and growing popularity overseas, Under Armour looks poised for profitability in the coming years. However, does the stock's high price justify its growth opportunities? Let's use our CHEAT SHEET investing framework to decide whether Under Armour is an OUTPERFORM, WAIT AND SEE, or STAY AWAY. C = Catalysts for the Stock's Movement With its popular campaigns such as "Protect This House," and key sponsorships of American athletes including Lindsey Vonn, Tom Brady, and the U.S. men and women's Olympics gymnastics team, Under Armour has established a presence in the domestic marketplace. However, as 94 percent of its sales come from the U.S., the same cannot be said for its foreign operations. According to CEO Kevin Plank, the company hopes to change that by ramping up its marketing efforts in Europe and Asia. One win for the company was reaching a deal with English Premier League team Tottenham Hotspur to supply the team's jerseys. The company has a long way to go to catch up to international players like Nike, which generates more than half of its $6 billion in revenue from overseas markets. Still, if Under Armour can find success abroad while keeping marketing costs at a manageable level, the company has huge growth potential. E = Earnings are Mostly Increasing Year-over-year Under Armour announced its first quarter earnings in April. The company beat analysts' earnings estimates of $0.03 a share, reporting EPS of $0.07. However, earnings were a full 50 percent lower than in the previous year's quarter. This earnings miss comes after two consecutive quarters of year-over-year earnings growth. The decrease stemmed from lower operating margins due to increased marketing costs, as the company continues its expansion program in North America and abroad. Investors will have to wait and see when and if the higher marketing expenditures will pay off in the coming year, but the company expects year-over-year revenue will increase by up to 24 percent for the entire fiscal year. Additionally, Under Armour expects that its operating margin will improve next quarter. The company announced its second quarter earnings on July 25. | 2013 Q1 | 2012 Q4 | 2012 Q3 | 2012 Q2 | 2012 Q1 | | Qtrly. EPS | $0.07 | $0.47$ | $0.54 | $0.06 | $0.14 | | EPS Growth YoY | -50.00% | 51.56% | 22.73% | 0.00% | 21.74% | | Qtrly. Revenue | $471.61M | $505.86M | $575.20M | $369.47M | $384.39M | | Revenue Growth YoY | 22.69% | 25.49% | 23.56% | 26.82% | 22.93% | *Data sourced from YCharts E = Excellent Performance Relative to Peers? Under Armour's chief competition are sports apparel giants Nike and Adidas. Lululemon (NASDAQ:LULU) is also included — despite a smaller product line and a different target market — because they are a high-growth sports apparel company, like Under Armour. The most striking item on the table is the price to earnings ratio, of which Under Armour has the highest, by 1.5 times. The company has more growth opportunities than the more mature brands Nike and Adidas, but it is much more expensive than the high-growth darling, Lululemon. Under Armour's gross margins are not as impressive as those of Nike's and Lululemon's, but Lululemon's margin is not as easily sustainable, as it will certainly face increasing competition in the future. On the basis of the price to earnings growth ratio — remember, the lower the better — Nike and Lululemon both trump Under Armour. | UA | NKE | ADDYY | LULU | | Trailing P/E | 54.44 | 23.29 | 32.68 | 36.64 | | Price/Sales | 3.36 | 2.23 | 1.21 | 6.82 | | PEG Ratio | 1.98 | 1.83 | -2.65 | 1.56 | | Gross Margin | 6.34% | 9.82% | 3.68% | 18.96% | | Dividend Yield | N/A | 1.30% | N/A | N/A | *Data sourced from Yahoo! Finance T = Technicals on the Stock Chart are Mixed Under Armour is currently trading at around $61.90, well above both its 200-day moving average of $54.63, and its 50-day moving average of $59.91. The stock has experienced a strong uptrend since the beginning of the year — up around 30 percent in the last six months. The stock experienced a slight pullback during the month of June, but seems to have resumed its bullish trend. 
Conclusion Under CEO Kevin Plank's guidance, Under Armour has established a growing domestic presence. With revenue growth of more than 20 percent each quarter, the company continues to resonate with American consumers. However, it faces an uphill battle in trying to compete with giants Nike and Adidas in European and Asian markets, both of which have already established strongholds abroad. Additionally, niche player Lululemon could threaten Under Armour's female customer base in the U.S.
With shares of GlaxoSmithKline (NYSE:GSK) trading around $51, is the stock 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 GlaxoSmithKline is global health care group engaged in the creation and discovery, development, manufacture, and marketing of pharmaceutical products, including vaccines, over-the-counter medicines, and health-related consumer products. GlaxoSmithKline's principal pharmaceutical products include medicines in these areas: respiratory, antivirals, central nervous system, cardiovascular and urogenital, metabolic, antibacterials, oncology and emesis, dermatology, rare diseases, immuno-inflammation, vaccines, and HIV. The company operates in three primary areas of business: pharmaceuticals, vaccines, and consumer health care. Through its areas of business, GlaxoSmithKline is able to positively affect the lives of many consumers around the world that require their medications. T = Technicals on the Stock Chart are Mixed GlaxoSmithKline stock has been coasting higher over the past several years. The stock is now pulling back a bit after breaking higher earlier this year. 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, GlaxoSmithKline is trading between its key averages, which signals neutral price action in the near term. 
(Source: Thinkorswim) Taking a look at the implied volatility and implied volatility skew levels of GlaxoSmithKline options may help determine if investors are bullish, neutral, or bearish. | Implied Volatility (IV) | 30-Day IV Percentile | 90-Day IV Percentile | | GlaxoSmithKline Options | 19.21% | 30% | 27% | What does this mean? This means that investors or traders are buying a minimal amount of call and put options contracts, as compared to the past 30 and 90 trading days. | Put IV Skew | Call IV Skew | | July Options | Flat | Average | | August 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 minimal amount of call and put option contracts and are leaning neutral to bullish over the next two months. E = Earnings are Decreasing 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 GlaxoSmithKline’s stock. What do the last four quarterly earnings and year-over-year revenue growth figures for GlaxoSmithKline look like and more importantly, how did the markets like these numbers? | 2013 Q1 | 2012 Q4 | 2012 Q3 | 2012 Q2 | | Earnings Growth (Y-O-Y) | -28.21% | -26.92% | -15.12% | 12.86% | | Revenue Growth (Y-O-Y) | -7.20% | -1.91% | -6.99% | -6.76% | | Earnings Reaction | 0.01% | 0.73% | -0.99% | -1.21% | GlaxoSmithKline has seen decreasing earnings and revenue figures over the past four quarters. From these numbers, the markets have had mixed feelings about GlaxoSmithKline’s recent earnings announcements. P = Excellent Relative Performance Versus Peers and Sector How has GlaxoSmithKline stock done relative to its peers, Merck (NYSE:MRK), Novartis (NYSE:NVS), Pfizer (NYSE:PFE), and sector? | GlaxoSmithKline | Merck | Novartis | Pfizer | Sector | | Year-to-Date Return | 18.29% | 16.29% | 12.26% | 12.36% | 14.81% | GlaxoSmithKline has been a relative performance leader, year-to-date. Conclusion GlaxoSmithKline is involved in the discovery and development of pharmaceutical drugs that tackle many known health care problems. The stock has been steadily trading higher but is now pulling back a bit as gains are being digested. Over the past four quarters, investors in the company have had mixed feelings about earnings announcements since earnings and revenue figures have declined. Relative to its peers and sector, GlaxoSmithKline has been a year-to-date performance leader. WAIT AND SEE what GlaxoSmithKline does in coming quarters.
Hovnanian Enterprises’ (HOV) earnings report was ho-hum–but more than enough to lift the stock and other homebuilders.  Reuters The Wall Street Journal reports: For the period ended July 31, Hovnanian reported a profit of $8.5 million, or six cents a share, down from $34.7 million, or 25 cents a share, a year earlier. The year-earlier period included a $36.5 million income tax benefit and $6.2 million in debt-extinguishment gains. Revenue jumped 24% to $478.4 million. Analysts polled by Thomson Reuters recently expected per-share earnings of seven cents and revenue of $505 million. Adjusted home-building gross margin rose to 20.3% from 18.2%. The initial reaction to those numbers was ho-hum as well, as Hovnanian’s shares opened down 0.2%. Still, it didn’t take long for investors to realize there were more to them a simple earnings miss. Hovnanian predicted a profitable year for the first time since 2006, for instance, and it also helped that CEO Ara Hovnanian was feeling pretty good during the company’s conference call. Comments like these (courtesy of FactSet): …we’re confident that the any hesitancy our consumers have seen or felt or acted with the higher rates will be a temporary bump in the road to housing recovery. Our confidence is bolstered by analysis of long-term home ownership affordability…Even though there’s some sticker shock for consumers with the recent increase in mortgage rates and the increase in home prices, we’re still very comfortable at the affordability levels compared to historic standards. Even if the 30-year mortgage rates were to increase 100 basis points to 5.4%, and if home prices on top of that went up another 6% from the June 13 levels…affordability would still be better than at any point in the period [from] 1975 through 2007, notwithstanding the current two-month record high affordability levels. Combine that with an ever-so-slightly lower 10-year yield and you have a recipe for a housing rally. Hovnanian has gained 2.8% to $5.18, but that was nothing compared to other gainers today. PulteGroup (PHM) has jumped 8.1% to $16.73, MDC Holdings (MDC) has risen 7% to $29.59, D.R. Horton (DHI) has climbed 6.6% to $19.30 and the Ryland Group (RYL) is up 5.9% at $37.98. The question now: Can the sector build on those gains? (Sorry. I couldn’t help myself.)
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis. What: Shares of Agilysys (NASDAQ: AGYS ) have soared today by as much as 11% after the company reported earnings. So what: Revenue in the fiscal fourth quarter rose 21% to $63 million, with the company's retail segment driving nearly all of those gains. Non-GAAP net income per share came in at $0.15, swinging into the black relative to the $0.16 per share adjusted loss a year ago. CEO James Dennedy said the company outperformed its expectations for the year. Now what: The company recently announced that it was divesting its retail group for roughly $35 million, which is expected to close later this summer. The consolidated figures include the retail segment's results. After the deal closes, Agilysys intends to focus its efforts exclusively on its hospitality business, which grew a modest 3% this quarter. Dennedy said the company plans to continue investing in the hospitality business, which may include acquisitions, to drive future growth. Hot Growth Companies For 2014: MEDIFAST INC(MED) Medifast, Inc., through its subsidiaries, engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. The company?s product lines include weight and disease management, meal replacement, and vitamins. It also operates weight control centers that offer Medifast programs for weight loss and maintenance, customized patient counseling, and inbody composition analysis. The company markets its products under the Medifast and Essential brand names, including shakes, appetite suppression shakes, women?s health shakes, diabetics shakes, joint health shakes, coronary health shakes, calorie burn drinks, calorie burn flavor infusers, antioxidant shakes, antioxidant flavor infusers, bars, crunch bars, soups, chili, oatmeal, pudding, scrambled eggs, hot cocoa, cappuccino, chai latte, iced teas, fruit drinks, pretzels, puffs, brownie, pancakes, soy crisps, crackers, and omega 3 and digestive health products. Medifast Inc. sells its products through various channels of distribution comprising Web, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing supported via the phone and the Web; Take Shape for Life, a physician led network of independent health coaches; and weight control centers. The company was founded in 1980 and is headquartered in Owings Mills, Maryland. Advisors' Opinion: Hot Growth Companies For 2014: TrueBlue Inc.(TBI) TrueBlue, Inc. provides temporary blue-collar staffing services in the United States. It supplies on demand general labor to various industries under the Labor Ready brand; skilled labor to manufacturing and logistics industries under the Spartan Staffing brand; and trades people for commercial, industrial, and residential construction, and building and plant maintenance industries under the CLP Resources brand. The company also provides mechanics and technicians to the aviation maintenance, repair and overhaul, aerospace manufacturing, and assembly industries, as well as to other transportation industries under the Plane Techs brand; and temporary drivers to the transportation and distribution industries under the Centerline brand. It primarily serves small and medium-size businesses. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington. Advisors' Opinion: - [By McWillams]
TrueBlue, Inc. is a provider of temporary blue-collar staffing. Its EPS forecast for the current year is 0.69 and next year is 1.1. According to consensus estimates, its topline is expected to grow 8.96% current year and 10.03% next year. It is trading at a forward P/E of 15.76. Out of 10 analysts covering the company, six are positive and have buy recommendations and four have hold ratings.
Crocs, Inc. and its subsidiaries engage in the design, development, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children. The company primarily offers casual and athletic shoes, and shoe charms. It also designs and sells a range of footwear and accessories that utilize its proprietary closed cell-resin, called Croslite. The company?s footwear products include boots, sandals, sneakers, mules, and flats. In addition, it provides footwear products for the hospital, restaurant, hotel, and hospitality markets, as well as general foot care and diabetic-needs markets. Further, the company offers leather and ethylene vinyl acetate based footwear, sandals, and printed apparels principally for the beach, adventure, and action sports markets; and accessories comprising snap-on charms. The company sells its products through the United States and international retailers and distributors, as well as directly to end-user consumers th rough its company-operated retail stores, outlets, kiosks, and Web stores primarily under the Crocs Work, Crocs Rx, Jibbitz, Ocean Minded, and YOU by Crocs brand names. As of December 31, 2010, it operated 164 retail kiosks located in malls and other high foot traffic areas; 138 retail stores; 76 outlet stores; and 46 Web stores. Crocs, Inc. operates in the Americas, Europe, and Asia. The company was formerly known as Western Brands, LLC and changed its name to Crocs, Inc. in January 2005. Crocs, Inc. was founded in 1999 and is headquartered in Niwot, Colorado. Advisors' Opinion: - [By Paul]
They’re back! Two years ago everyone was convinced that Crocs (CROX: 23.33 0.00%) was just a fad, but their stock price exploded in 2010 gaining 206%. Revenues are expected to climb 20% this year and analysts are looking for 27% earnings growth in 2011. That type of growth could make Crocs a hot item again in 2011, especially if they can continue to top Wall Street’s estimates each quarter.
Hot Growth Companies For 2014: Eastern Insurance Holdings Inc.(EIHI) Eastern Insurance Holdings, Inc., through its subsidiaries, provides workers compensation insurance and reinsurance products in the United States. The company?s Workers Compensation Insurance segment provides traditional workers compensation insurance coverage products, including guaranteed cost policies, policyholder dividend policies, retrospectively-rated policies, deductible policies, and alternative market products to employers. This segment distributes its workers? compensation products and services through its independent insurance agents primarily in Pennsylvania, Delaware, North Carolina, Maryland, Indiana, and Virginia. Its Segregated Portfolio Cell Reinsurance segment offers alternative market workers compensation solutions comprising program design, fronting, claims administration, risk management, segregated portfolio cell rental, asset management, and segregated portfolio management services to individual companies, groups, and associations. Eastern Insurance Holdings, Inc. is headquartered in Lancaster, Pennsylvania. Hot Growth Companies For 2014: Thoratec Corporation(THOR) Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. The company?s primary product lines include ventricular assist devices, such as HeartMate II, an implantable left ventricular assist device consisting of a rotary blood pump to provide intermediate and long-term mechanical circulatory support (MCS); and HeartMate XVE, an implantable and pulsatile left ventricular assist device for intermediate and longer-term MCS. Its ventricular assist devices also comprise Paracorporeal Ventricular Assist Device, an external pulsatile ventricular assist device, which provides left, right, and biventricular MCS approved for bridge-to-transplantation (BTT), including home discharge, and post-cardiotomy myocardial recovery; and Implantable Ventricular Assist Device, an implantable and pulsatile ventricular assist device designed to provide left, right, and biventricular MCS approved for BTT comprising hom e discharge, and post-cardiotomy myocardial recovery. The company also provides CentriMag, an extracorporeal full-flow acute surgical support platform that offers support up to 30 days for cardiac and respiratory failure. In addition, it offers PediMag and PediVAS extracorporeal full-flow acute surgical support platforms designed to provide acute surgical support to pediatric patients. The company sells its products through direct sales force in the United States, as well as through a network of distributors internationally. Thoratec Corporation was founded in 1976 and is headquartered in Pleasanton, California. Advisors' Opinion:
This column originally appeared exclusively first for Stock Investor Cheat Sheet premium subscribers on May 6th and has been updated to reflect current data changes. With shares of WebMD Health Corp. (NASDAQ:WBMD) trading at around $29.72, is WBMD an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework: C = Catalyst for the Stock's Movement WebMD is making some changes, and these changes are likely for the better. It's apparent that CEO Cavan M. Redmond wasn't the ideal leader. According to Glassdoor.com, employees rated their employer a 2.6 of 5. Only 36 percent of employees would recommend the company to a friend, and only 22 percent of employees approved of Cavan M. Redmond. The Board of Directors has appointed David J. Schlanger to serve as Interim Chief Executive Officer. Martin J. Wygod, Chairman of WebMD, said, "The change announced today will best position us to build on the momentum that our senior management team has created to date. Under David's leadership, we will accelerate the development and implementation of strategies to diversify our revenue base and capture the opportunities arising from the rapidly changing healthcare landscape." All that said, Cavan M. Redmond must have done something right. In Q1, webmd.com averaged 132 million unique users per month, which was a 23 percent increase year-over-year. Regardless, company culture must be strong in order to achieve optimal results. Therefore, a change was necessary. WebMD recently beat Q1 expectations and raised guidance. The company reported a loss of three cents per share whereas analysts expected a loss of 15 cents per share. Revenue also beat expectations by 5 percent. In regards to guidance, WebMD raised full-year expectations to -$0.26 to -$0.03. Analysts expected a loss of 30 cents per share. The raised guidance is mostly related to an improved outlook in the public portal advertising business. WebMD expects FY2013 revenue to come in between $450 million and $470 million, which is at best flat compared to 2012. For the current quarter, WebMD expects revenue to exceed $115 million. This would be a significant improvement on a year-over-year as well as sequential basis. WebMD offers four services: WebMD Consumer Network, WebMD Professional Network, WebMD Private Portal Services, and WebMD Publishing Services. WebMD Consumer Network consists of WebMD.com, MedicineNet.com, eMedicineHealth.com, and RxList.com. Through these sites, WebMD helps people take an active role in managing their health and wellness via timely written and video content provided by medical writers, physicians, and health educators. This is an interactive service. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! WebMD Professional Network consists of Medscape.com and theheart.org. This service offers continuous education and training for professionals. The goal of the service is to increase clinical knowledge, provide important medical opinions, and to report medical findings and the latest treatments. This service also includes WebMD Direct Services, which consists of a proprietary database of physicians and offers physician engagement solutions, targeted recruitment, and online distribution and delivery. WebMD Portal Services is designed to offer employers and health plan members more informed decisions in regards to benefits, treatments, and providers. Members have an opportunity to access personal health information, which can help aid these decisions. This service also includes health risk assessments, lifestyle education, health coaching, and pertinent information regarding cost and quality of healthcare. The ultimate goals are to use the information to determine the best provider, and to estimate costs of future treatments and procedures. WebMD Publishing Services publishes WebMD the Magazine, which can be found in approximately 85 percent of physician waiting rooms in the United States. In all, WebMD is widely known as the most trusted and recognized brand of health information. It would be difficult to imagine a scenario where this suddenly changes. The chart below compares fundamentals for WebMD, Computer Programs & Systems Inc. (NASDAQ:CPSI), and Merge Healthcare Incorporated (NASDAQ:MRGE). | WBMD | CPSI | MRGE | | Trailing P/E | N/A | 18.26 | N/A | | Forward P/E | 371.50 | 17.19 | 12.19 | | Profit Margin | -2.97% | 16.60% | -13.29% | | ROE | -2.83% | 53.38% | -39.06% | | Operating Cash Flow | 70.66M | N/A | 5.88M | | Dividend Yield | N/A | 4.10% | N/A | | Short Position | 7.80% | 6.20% | 7.80% | Let's take a look at some more important numbers prior to forming an opinion on this stock… T = Technicals Are Strong WebMD has outperformed its peers by wide margins year-to-date. | 1 Month | Year-To-Date | 1 Year | 3 Year | | WBMD | 26.09% | 107.3% | 38.36% | -37.44% | | CPSI | -4.62% | 4.65% | -4.10% | 29.67% | | MRGE | 3.12% | 33.60% | 24.53% | 36.93% | At $29.72, WebMD is trading well above its averages. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! | 50-Day SMA | 24.92 | | 200-Day SMA | 19.18 | E = Equity to Debt Ratio Is Weak The debt-to-equity ratio for WebMD is weaker than the industry average of 0.50. This is one of the few negatives for WebMD at the moment. It is hopeful that new management can make an improvement. | Debt-To-Equity | Cash | Long-Term Debt | | WBMD | 1.55 | 999.22M | 800.00M | | CPSI | 0.00 | 17.50M | 0.00 | | MRGE | 3.43 | 45.30M | 250.26M | E = Earnings Are Inconsistent Annual earnings have been inconsistent, but based on current guidance, WebMD should be headed back in the right direction. | Fiscal Year | 2008 | 2009 | 2010 | 2011 | 2012 | | Revenue ($) in billions | 0.373 | 0.439 | 0.535 | 0.559 | 0.470 | | Diluted EPS ($) | 5.88 | 2.07 | 0.88 | 1.25 | -0.40 | When we look at the last quarter on a year-over-year basis, revenue and earnings have both improved. | Quarter | Mar. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Mar. 31, 2013 | | Revenue ($) in billions | 0.107 | 0.113 | 0.118 | 0.133 | 0.113 | | Diluted EPS ($) | -0.14 | -0.11 | -0.02 | -0.1241 | -0.03 | Now let's take a look at the next page for the Trends and Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY? T = Trends Support the Industry With baby boomers retiring in droves, there is going to be a significant increase in the need for health information. This simple fact should lead to a strong industry in the coming years. NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW! Conclusion WebMD is making all the correct decisions and looks to be heading in the right direction. With trends supporting the industry and new management in place, WebMD is a long-term OUTPERFORM.
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