Thursday, February 20, 2014

Which Small Cap Can Be the Next Monster Beverage Corp (MNST)? JSDA, CELH & KRED

Monster Beverage Corp (NASDAQ: MNST), a mid cap marketer and distributor of energy drinks and alternative beverages, has been a monster of a performer since the end of the financial crisis as the stock is up around 308% over the past five years, but could new or overlooked players like small cap beverage stocks Jones Soda Co (OTCMKTS: JSDA), Celsius Holdings, Inc (OTCMKTS: CELH) and Konared Corp (OTCBB: KRED) repeat that performance? A look strictly at the long term performance of all three small caps might have you thinking otherwise. After all, none of these small cap beverage stocks are profitable while the beverage industry can be a long hard expensive slog just to increase market share by one or two points when you are competing for shelf space with industry giants like Pepsi and Coke. But past performance is just that – the past and only part of the story as there is much more to consider about these small cap beverage stocks which could also make them potential acquisition targets by larger beverage players seeking to expand their product line up with innovative products:

Jones Soda Co. Founded in 1987 when company founder Peter van Stolk recognized the potential of emerging "alternative" products in the beverage industry, Jones Soda began as a distributor in western Canada before coming up with its own beverage flavors. In 2000, Jones Soda launched its own energy drink called WhoopAss. It should be mentioned that Jones Soda's share price peaked at around $28 a share in 2007 but has mostly traded below the $1 level since the financial crisis. However, the company has been under a new CEO since 2012 and she has been working to turn the company around. Either way, annual net losses have fallen from the $10 million level in 2009 to under $3 million in 2012. On Tuesday, Jones Soda rose 0.16% to $0.556 (JSDA has a 52 week trading range of $0.25 to $0.91 a share) for a market cap of $21.50 million plus the stock is up 104.4% over the past year and up 20.8% over the past five years.

Top Bank Companies To Watch In Right Now

Celsius Holdings, Inc. Small cap Celsius Holdings is the developer of Celsius, the world's first negative calorie drink which was launched in June 2005 after the completion of a clinical study validating its calorie burning benefits. The company says that since then, several clinical studies presented and published on Celsius has demonstrated its efficacy at burning calories and providing lasting energy as drinking the beverage 15 minutes prior to exercise reduces body fat, increases endurance and provides greater resistance to fatigue (increased energy). So far this year, Celsius Holdings has announced a partnership with TriStar Motorsports for the 2014 NASCAR Nationwide Series season and commenced manufacturing of its Celsius ready to drink product in Dusseldorf, Germany which should help reduce freight costs and transit time. Celsius Holdings also announced year end financials with the highlights being a 38% revenue increase to $10.6 million while the company's net Loss decreased by 34% to $1.8 million. On Tuesday, Celsius Holdings rose 5.47% to $0.380 (CELH has a 52 week trading range of $0.19 to $0.60 a share) for a market cap of $7.67 million plus the stock is up 80.9% over the past year and up 642.2% over the past five years.

Konared Corp. Headquartered in the Hawaiian Islands, the KonaRed Corporation consists of a group of seasoned sales and marketing professionals and proven scientists who have been studying the benefits of Hawaiian Coffee Fruit for the past 5 years – a byproduct of coffee production (as its the fruit that surrounds the coffee bean or seed) that has been recognized as an antioxidant powerhouse. 

KonaRed Corporation's products are already sold in select Whole Foods, Albertsons, Safeway, Sprouts, Wal-mart, 7-Eleven, and many other retail outlets throughout the US and Canada.

In addition to recent a announcements about getting its products into more retail stores, Konared Corp announced earlier this month that it had entered into a purchase agreement with Lincoln Park Capital Fund, LLC, a Chicago-based institutional investor that is committed to invest up to $12 million of equity capital over the term of the Purchase Agreement; plus at the end of last month, the company also announced a $1 million private placement – meaning KRED probably has enough working capital to keep expanding and developing new products for this year. On Tuesday, Konared Corp rose 0.01% to $0.70 (KRED has a 52 week trading range of $0.59 to $1.36 a share) for a market cap of $45.05 million plus the stock is up 0.01% since last October.

The Bottom Line. Again, all of the above small cap beverage stocks are not yet profitable and have had their share of past performance hiccups, but all of them do have products with the potential to make them the next Monster Beverage Corp.

Wednesday, February 19, 2014

Target Data Breach Far Larger Than First Thought

target security breach credit cards debit cardsCarolina Hidalgo, Tampa Bay Times/ZUMAPRESS.com/Alamy NEW YORK -- Target's pre-Christmas security breach was significantly more extensive and affected millions more shoppers than the company reported last month. The nation's second largest discounter said Friday that hackers stole personal information -- including names, phone numbers as well as email and mailing addresses -- from as many as 70 million customers as part of a data breach it discovered in December. Target Corp. (TGT) disclosed last month that about 40 million credit and debit cards may have been affected by a data breach that happened between Nov. 27 and Dec. 15 -- just as the holiday shopping season was getting into gear. According to the company's investigation, criminals also took non-credit card related data for some 70 million shoppers who could have made purchases at Target stores outside the late November to mid-December time frame. Some overlap exists between the two data sets, the company said Friday. "I know that it is frustrating for our guests to learn that this information was taken and we are truly sorry they are having to endure this," said Gregg Steinhafel, Target chairman, president and CEO, in a statement. While Target investors have been largely unmoved, the incident has shaken shoppers. The company's stock has traded at about $63 since news of the breach leaked on Dec. 18. It slipped just 67 cents, or 1 percent, to $62.67 in morning trading Friday. Target revealed Friday, however, that the breach diminished holiday sales. The company cut its forecast for fourth-quarter earnings, a key sales barometer. The theft from Target's databases is still the second largest data breach on record, rivaling an incident uncovered in 2007 that saw more than 90 million credit card accounts pilfered from TJX Cos. (TJX). Target said in December that customers' names, credit and debit card numbers, card expiration dates, debit-card PINs and the embedded code on the magnetic strip on the back of cards had been stolen. The company has been working with the Secret Service and the Department of Justice on the investigation. Target tried to woo scared shoppers back to stores on the last weekend before Christmas with a 10 percent discount on nearly everything in its stores. But Customer Growth Partners, a retail consultancy, estimated that the number of transactions at Target fell 3 percent to 4 percent on the Saturday before Christmas, compared with a year ago. "You have violated that person's trust. And it's going to take time to regain that trust," said Brian Sozzi, CEO and chief equities strategist of Belus Capital Advisors. Target lowered its fourth-quarter adjusted earnings guidance to a range of $1.20 to $1.30 a share, down from $1.50 to $1.60 a share. Analysts surveyed by FactSet expect earnings of $1.24 a share. The Minneapolis company also said that it now foresees fourth-quarter sales at stores open at least a year will be down about 2.5 percent. It previously predicted those sales would be about flat. This figure is a closely watched indicator of a retailer's health. Target cautioned that its fourth-quarter financials may include charges related to the data breach. The chain said the costs tied to the breach may have a material adverse effect on its quarterly results as well as future periods. The company has 1,921 stores, with 1,797 locations in the U.S. and 124 in Canada.

Monday, February 17, 2014

UPDATE: 4% Boost for J.C. Penney After Piper Jaffray Upgrades on Potential

In a report released Thursday morning, analyst Neely Tamminga of Piper Jaffray upgrades J.C. Penney (NYSE: JCP) to Overweight from Neutral, maintaining price target of $11.

Piper Jaffray states that JCP is on the right recovery track, "We believe the real message in yesterday's release is being missed: JCP is doing what they said they would do, and we believe any retailer reiterating their guidance following this compressed, promotional, mall-traffic-starved holiday season is a winner in our book"

Tamminga highlighted catalysts for the upgrade that included restored promo pricing, conversion rate of traffic into transactions, and increased E-commerce sales.

JCP closed Wednesday at $7.37 and currently trading up over 4% at $7.74.

Posted-In: Upgrades Markets Analyst Ratings

(c) 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Top 5 Electric Utility Companies For 2015

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Top 5 Electric Utility Companies For 2015: LiveDeal Inc.(LIVE)

LiveDeal, Inc., together with its subsidiaries, delivers local customer acquisition services for small and medium-sized businesses. It provides online marketing Internet directory services. The company offers InstantProfile, which distributes small businesses? key contact and service information to Internet destinations, including the search engines, Internet directories, and social media networks that enable advertisers to manage their business information in one location and enhance their reach to various destinations a consumer may search for local business services. It also provides online listing services. The company was formerly known as YP Corp. and changed its name to LiveDeal, Inc. in August 2007. LiveDeal, Inc. was founded in 1968 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:
  • [By James E. Brumley]

    Well, I hate to be the one to say I told you so, but, I told you so. Back on December 11th I said it was time to take a swing on LiveDeal Inc. (NASDAQ:LIVE). The company was causing quite a stir within the investment community, and shares of LIVE were getting more and more bullish traction. All told, LiveDeal shares are up 119% since the look I took less than a month ago, coming out of nowhere, and surprising a lot of people.

  • [By Alan Brochstein]

    Matula, who is currently a SVP for LiveDeal (LIVE), has a history of association with penny stock failures. An interesting angle is his tie to a lawyer in Las Vegas, Michael Balabon, who purports to have two separate practices, including a bankruptcy/divorce practice and an employment law practice who has acted as Registered Agent for many of these companies. I was unable to reach anyone at either office on several occasions. In any event, Balabon is the registered agent for PLPL. Coincidentally, he served in that role for NVLX as well as well as all of the former subsidiaries and partners the firm used (the new Medical Marijuana Sciences subsidiary too). Recall that the predecessor to PLPL was Diamond Ranch, and Balabon was the RA there as well. Matula has served in I.R. roles for perpetual failures like VelaTel Global (VELA.PK).

  • [By James E. Brumley]

    To be completely fair, investors and consumers alike may understandably roll their eyes regarding any news from, or about, any online-coupon "daily deals" site. We've been down that road before, with names like Groupon Inc. (NASDAQ:GRPN) and LivingSocial. While both sites were interesting and had their day in the sun, it didn't take long for either to lose their luster. And for GRPN, it didn't take long for its early investors to lose a lot of their money. The daily deals premise never really went away, though. It's just been morphing - and right-sizing - into something that's a win for all the parties involved. That's why Groupon and LivingSocial are still around, even if they're just limping by... the premise itself basically works. What if, however, there was a daily deals site that wasn't too far down the wrong digital-coupon path? Enter LiveDeal Inc. (NASDAQ:LIVE).

Top 5 Electric Utility Companies For 2015: Asiabasemetals Inc (ABZ.V)

AsiaBaseMetals Inc. engages in the acquisition, exploration, and development of mineral properties principally zinc and base metals in Canada. The company owns interests in the Gnome Zinc project that encompasses approximately 5,429 hectares located in British Columbia. It also focuses on identifying, acquiring, and developing copper, and other base and precious-metal properties in Asia, and North and South America. The company was incorporated in 2009 and is headquartered in Vancouver, Canada.

Top 10 Safest Companies To Watch In Right Now: (XRC.TO)

Exeter Resource Corporation engages in the acquisition, exploration, and development of mineral resource properties in Chile and Mexico. The company primarily explores for gold, copper, and silver deposits. It principally holds a 100% interest in the Caspiche gold-copper project located in the central Chilean Andes of Northern Chile. The company was formerly known as Golden Glacier Resources Inc. and changed its name to Exeter Resource Corporation in October 2002. Exeter Resource Corporation was founded in 1984 and is headquartered in Vancouver, Canada.

Top 5 Electric Utility Companies For 2015: Intensity Company Inc(ITT.V)

Intensity Company Inc. sells computer hardware and software products in Canada. The company was formerly known as Flukong Enterprise Inc. and changed its name to Intensity Company Inc. in January 2010. Intensity Company Inc. was incorporated in 1998 and is headquartered in Edmonton, Canada.

Top 5 Electric Utility Companies For 2015: Enersis S A(ENI)

Enersis S.A., an electric utility company, engages in the generation, transmission, and distribution of electricity in Chile, Argentina, Brazil, Colombia, and Peru. It owns and operates hydroelectric, thermal, and wind power plants. As of December 31, 2010, it had 14,833 megawatts of installed capacity with 195 power plants; and 13.3 million distribution customers covering approximately 50 million inhabitants. The company was formerly known as Compania Chilena Metropolitana de Distribucion Electrica S.A and changed its name to Enersis S.A. in August 1988. Enersis S.A. was founded in 1889 and is headquartered in Santiago, Chile. Enersis S.A. is a subsidiary of Endesa Latinoamerica S.A.

Advisors' Opinion:
  • [By Sofia Horta e Costa]

    European stocks were little changed at a one-week high as companies from Eni SpA (ENI) to Volkswagen AG posted profit that exceeded estimates, while a gauge of telecommunications companies retreated.

Top 5 Electric Utility Companies For 2015: Helen of Troy Limited(HELE)

Helen of Troy Limited, together with its subsidiaries, engages in the design, development, import, marketing, and distribution of brand-name consumer products primarily in the United States and Canada, as well as in Europe, Asia, and Latin America. It operates in three segments: Personal Care, Housewares, and Healthcare/Home Environment. The Personal Care segment offers hair dryers, straighteners, curling irons, hair setters, shavers, mirrors, hot air brushes, home hair clippers and trimmers, paraffin baths, massage cushions, footbaths, body massagers, brushes, combs, hair accessories, liquid and aerosol hair styling products, men?s fragrances, men?s and women?s antiperspirants and deodorants, liquid and bar soaps, shampoos, conditioners, hair treatments, foot powder, body powder, and skin care products. The Housewares segment provides kitchen tools, cutlery, bar and wine accessories, household cleaning tools, food storage containers, tea kettles, trash cans, storage an d organization products, hand tools, gardening tools, kitchen mitts and trivets, barbeque tools, and rechargeable lighting products, as well as baby and toddler care products, including convertible high chair. The Healthcare/Home Environment segment offers humidifiers, de-humidifiers, vaporizers, thermometers, air purifiers, fans, portable heaters, heating pads, and electronic mosquito traps. The company sells its products primarily through mass merchandisers, drugstore chains, warehouse clubs, home improvement stores, catalogs, grocery stores, specialty stores, beauty supply retailers, e-commerce retailers, wholesalers, and various types of distributors, as well as directly online to end user consumers. Helen of Troy Limited was founded in 1968 and is based in Hamilton, Bermuda.

Advisors' Opinion:
  • [By Canadian Value]

    NEW YORK, Feb. 4, 2014 /PRNewswire/ -- Sachem Head Capital Management today sent a letter to the Board of Directors of leading consumer goods company Helen of Troy Limited (HELE). In the letter, Sachem Head outlines its belief that Helen of Troy shares are materially undervalued, highlighting the Board's apparent unwillingness to respond to recent inquiries regarding potential strategic combinations, and recommending actions for the Board of Directors to undertake to maximize value for the shareholders, including a thorough and legitimate review of strategic alternatives.

  • [By Monica Gerson]

    Helen of Troy (NASDAQ: HELE) is estimated to post its Q2 earnings at $0.72 per share on revenue of $292.15 million.

    Posted-In: Earnings scheduleEarnings News Pre-Market Outlook Markets

  • [By Wallace Witkowski]

    Helen of Troy Ltd (HELE) �shares rose 1.3% to $49.20 on light volume after reporting third-quarter earnings of $1.16 a share on revenue of $380.7 million. Analysts had forecast earnings of $1.09 a share on revenue of $378.9 million.

Top 5 Electric Utility Companies For 2015: Insignia Energy Ltd (ISN.TO)

Insignia Energy Ltd. engages in the acquisition, exploration, development, and production of crude oil and natural gas in western Canada. It holds approximately 76% working interest in the Pouce Coupe property comprising 20,640 acres of petroleum and natural gas rights comprising 7,456 net developed acres and 8,156 net undeveloped acres located northwest of Edmonton; and 70% working interest in the Caroline property covering 28,514 acres of land, including 5,417 net developed acres and 14,472 net undeveloped acres located northwest of Calgary in Alberta. The company also has a 60% working interest in the Pembina property with approximately 5,120 acres of land consisting of 1,669 net developed acres and 1,381 net undeveloped acres located southwest of Edmonton; and 76% working interest in the Valhalla property with approximately 2,720 acres of land of which approximately 1,000 net developed acres and approximately 1,080 net undeveloped acres in northwest of Edmonton in Albe rta. Insignia Energy Ltd. is headquartered in Calgary, Canada.

Top 5 Electric Utility Companies For 2015: Timberline Resources Corporatio(TBR.V)

Timberline Resources Corporation engages in the exploration and development of mineral properties in the western United States. It primarily explores for gold, silver, and copper. The company?s principal property includes Lookout Mountain Project located in Nevada. It also owns other projects at various stages of exploration in the Battle Mountain/Eureka gold trend in north-central Nevada. The company was formerly known as Silver Crystal Mines, Inc. and changed its name to Timberline Resources Corporation in February 2004. Timberline Resources Corporation was incorporated in 1968 and is headquartered in Coeur D?Alene, Idaho.

Saturday, February 15, 2014

Meet the 2014 Warren Buffett and Berkshire Hathaway Stocks

As many consider Warren Buffett to be the greatest investor of modern times, investors want to know any time there are big changes in the Berkshire Hathaway Inc. (NYSE: BRK-A) holdings. The conglomerate and holding company’s total listed equity holdings were valued at $104.8 billion as of December 31, 2013 versus $92.035 billion on September 30, 2013. Portfolio managers Todd Combs and Ted Weschler are becoming fixtures at the company as far as their ability to add to positions.

24/7 Wall St. has counted up the detailed holdings on the fly and given color and reference on each holding. While there is a lag here, effectively this is meant to represent the first full look at the 2014 stock holdings of Warren Buffett and Berkshire Hathaway Inc. (NYSE: BRK-B).

We have also recently listed the six stocks that Warren Buffett has never sold.

The biggest change we wanted to watch was Exxon Mobil Corp. (NYSE: XOM), and that was grown slightly here in this last quarter. The gain in Exxon was not as much as we expected, so hopefully he has been opportunistic since the start of 2014.

General Electric Co. (NYSE: GE) is a much larger stake, as we have been expecting after warrant conversions. Now we know what the GE position is. It will be interesting to see how Buffett treats this stake going into the upcoming GE spin-off of the US consumer finance unit.

Wells Fargo & Company (NYSE WFC) was lifted as a stake yet again, but the increase was rather small. We can only expect more of the same until we are proven wrong, and some may simply be from put option writing.

Other SEC filings have been made as well, so other stakes may have been made or may have changed since the end of 2013. The full list of Warren Buffett and Berkshire Hathaway stocks as of December 31, 2013 is as follows:

Thursday, February 13, 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.

The Motley Fool's top stock for 2014
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Wednesday, February 12, 2014

Olstein Top 3 Buys Last Quarter

Robert Olstein (Trades, Portfolio) is the chairman and chief investment officer of the Olstein Financial Alert Fund (OFALX). He is considered to be an expert in corporate financial disclosure and reporting practices.

A description of their investment philosophy can be found here.

Let's take a look at his top three buys over the last quarter:

AT&T (T): This is a new holding for the fund. Olstein bought 146,000 shares at prices between $33.1 and $36.45. The current stock price is 33.01, i.e. a 5% to the average high-low price over the period. The stock has been in a bear trend for more than a year but counts Gurus James Barrow (Trades, Portfolio) and Brian Rogers (Trades, Portfolio) as biggest holders. AON (AON): The fund purchased 60,000 shares in the insurance company for a 0.75% impact to the portfolio. The stock is still trading at the upper bound of the high-low price ranges over the past quarter. Aon PLC provides risk management and human capital consulting services, delivering distinctive client value via risk management solutions, including insurance and reinsurance brokerage and workforce productivity solutions. It is also noteworthy that the stock saw a large insider buy of more than $2 million by one of the company's director 10 days ago. International Game Technology (IGT): IGT is a global gaming company specializing in the design, manufacture and marketing of electronic gaming equipment and systems products. The Olstein fund added 246,000 shares of the company over the last quarter. The current price is at a 20% discount to the average of the price range over the period. It is noteworthy that Guru John Hussman (Trades, Portfolio) also bought 500,000 shares over the same period.
Also check out: Robert Olstein Undervalued Stocks Robert Olstein Top Growth Companies Robert Olstein High Yield stocks, and Stocks that Robert Olstein keeps buying

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Tuesday, February 11, 2014

Netflix's Next Move: Producing Its Own Blockbuster Films

5 Best Financial Stocks To Invest In Right Now

Earns NetflixAP/Elise Amendola Netflix (NFLX) has been called a lot of things over the years -- some of them unkind. As the leading streaming video service -- serving up 2 billion hours of content a month -- it's going to get that. Critics call it "rerun TV" given its digital catalog that leans heavily on episodes of shows that are no longer on the air, or older seasons of current shows. Fans view it as a hub for "binge viewing" as it makes entire seasons of even new original programming available all at once, so folks can stream episode after episode. If Netflix has its way, the next name it's called may be "movie mogul." One of the more interesting tidbits from Netflix's earnings call late last month was the suggestion that it could soon start competing with the major Hollywood studios it usually partners with by producing a big-budget blockbuster. "It seems like you have bigger aspirations to do a real -- call it $100 million type -- movie," Netflix was asked. "Could you discuss why that's interesting and what that could potentially do for Netflix?" This is the kind of question that Netflix would have laughed off in the past, but Chief Content OfficerTed Sarandos didn't shoot down the chatter this time. Tinseltown Rebellion "Without confirming or denying the range or the aspiration, I would say that to the consumers the line between a movie and a TV is getting pretty blurry," Sarandos responded, going on to say that a TV show like "House of Cards" with 13 episodes is more like a 13-hour movie. A movie, then, is along the lines of a two-hour TV show. This would seem to indicate that Netflix thinks investing in an original series along the lines of "Orange is the New Black" or bankrolling that fourth season of "Arrested Development" is a better financial gamble than joining Hollywood's gamble in backing a costly film. But Sarandos didn't stop there. He went on to complain that the movie industry's system of putting out a movie in the multiplexes, and then waiting nearly a year before releasing it in other distribution outlets is a broken model. "What we like to do is look at ways -- different ways -- that we can accelerate that window," he said. "Maybe like with original programming, the most effective way to work that is to do it yourself." That makes it sound as if Netflix will be producing a major theatrical release sooner rather than later as a way to reinvent the release cycle of movies, the way its full-season-at-once system is reinventing the release cycle for new TV shows. Coming Soon to a Theater Near You Last month, Netflix received its first Oscar nomination for "The Square," a critically-acclaimed documentary that details the Egyptian revolution that began in Tahrir Square three years ago. Another Netflix-produced documentary -- "Mitt," which focuses on the failed 2008 and 2012 presidential campaigns of Mitt Romney -- began streaming on the service late last month. Documentaries are safe investments for Netflix. They are far cheaper to produce than scripted films, and Netflix knows that they generate a lot of interest for a fair amount of time. Making a Hollywood-style movie will come with risks. Will it fare well at the box office? Will moviegoers stay away if they know that it's going to be streaming on Netflix sooner than most theatrical releases? These will be important questions to answer given the amount of money that Netflix may have to invest unless it teams up with other parties. However, a huge benefit for Netflix would be something that was mentioned at the beginning of this article. Netflix is streaming 2 billion hours of content a month, and it began the year with 44 million streaming customers worldwide. None of its competitors comes even close to those numbers. Netflix knows just what these 44 million people are watching -- information that will be invaluable in deciding what movies to get behind. It knows which genres, directors, writers, and actors viewers are drawn to with a precision even the most successful Hollywood studios can't match. Netflix is going to make a movie -- a big movie -- and when it does, you're probably going to want to see it.

Sunday, February 9, 2014

Manufacturing Growth Eases; Construction Spending Soars

ISM Manufacturing figures decemberRon Antonelli/Bloomberg via Getty Images WASHINGTON -- U.S. manufacturing grew at a slightly slower pace in December but hiring hit a 2½-year high and the volume of new orders soared to a level last seen in early 2010. The Institute for Supply Management said its index of national factory activity stood at 57 last month. That was in line with economist forecasts but a touch below November's 2½-year high of 57.3. Readings above 50 indicate expansion. Even so, December's result was the second highest reading this year. The goods-producing sector contracted in May but its growth accelerated over the second half of 2013. And the forward-looking new orders index, at 64.2, checked in at its highest level since April 2010, suggesting momentum in the sector could quicken in 2014. It stood at 63.6 in November. The employment index rose to 56.9, its best showing since June 2011, from 56.5 in November. A second report from the federal government showed U.S. construction spending rose to its highest level in nearly five years in November as a surge in private construction projects offset a drop in public outlays. Construction spending increased 1 percent to an annual rate of $934.4 billion, the highest level since March 2009, the Commerce Department said Thursday. It was the eighth straight month that construction spending increased. Economists polled by Reuters had expected a gain of 0.6 percent in November. Construction spending in October was revised to show a 0.9 percent rise instead of the previously reported 0.8 percent increase. The report added to data ranging from employment to consumer spending that have suggested resilience in the economy even as growth is expected to step down from the third-quarter's brisk 4.1 percent annual rate. Construction spending in November was lifted by a jump in private construction projects to their highest level since December 2008. Private construction spending rose 2.2 percent after being flat in October. The increase reflected strong gains in spending on both residential and nonresidential projects. Private residential spending hit its highest level since June 2008 and outlays on nonresidential structures, which include factories and gas pipelines, touched an 11-month high. Public construction spending fell 1.8 percent as both outlays on federal and state and local government projects declined.

Saturday, February 8, 2014

GE (GE) to Keep Down Costs With 3D Printing

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NEW YORK (TheStreet) -- GE (GE) is reportedly preparing to adopt 3D printing in an effort to speed up repairs and cut manufacturing costs. Shares of GE rose 0.8% to $27.83 on Thursday following a report in the Financial Times.

According to the newspaper, GE and other industrials such as Siemens and EADS are planning to use 3D printing in part to hold down costs. By 2016, GE aims to begin mass producing fuel nozzles for the Leap engine using 3D printing for use in the Boeing (BA) 747 Max and Airbus A320neo. The 3D-printed fuel nozzles are much lighter than traditional parts, and are said to last five times as long.

Current challenges GE and other companies face when making the switch to 3D-printed parts is inventory costs as printing parts takes longer than traditional methods, making more difficult to efficiently produce large quantities of parts.

TheStreet Ratings team rates GENERAL ELECTRIC CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate GENERAL ELECTRIC CO (GE) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: GENERAL ELECTRIC CO' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GENERAL ELECTRIC CO increased its bottom line by earning $1.38 versus $1.24 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus $1.38). The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Industrial Conglomerates industry and the overall market on the basis of return on equity, GENERAL ELECTRIC CO has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500. GE's share price has surged by 30.03% over the past year, reflecting the market's general trend, despite their weak earnings growth during the last quarter. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year. The gross profit margin for GENERAL ELECTRIC CO is rather high; currently it is at 51.58%. Regardless of GE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.02% trails the industry average. GE, with its decline in revenue, slightly underperformed the industry average of 2.3%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share. You can view the full analysis from the report here: GE Ratings Report

Stock quotes in this article: GE, BA 

Friday, February 7, 2014

America's Bestselling Retirement "Plan" Is Jeopardizing – of All Things – Your Retirement

I recently received a call from "Russ," a client of mine. He was wondering why the investments he holds at my money management firm have gone up so much more than the money he's entrusted to a major fund broker.

I'd be wondering, too.

That's because, in a year filled with hundreds of 52-week highs and a broad market that climbed roughly 25%, they've managed to "grow" Russ' money all of... 2%?

It didn't take long to find out why.

It's estimated that by 2020, nearly $3.85 trillion will be invested in the same "one-click" mutual fund industry's bestsellers that Russ did: "Target Retirement Funds."

I'm so glad he called.

These "funds of funds" are dangerous. They're far too simplistic, automatically adjusting your investments based largely on one factor: your age. And that just doesn't work anymore.

In fact, these "solutions" are more dangerous than they've ever been...

The Market Doesn't Know - or Care About - Your Birthday

"Target" funds allocate client money to other funds within their respective investment "families," and they do so almost exclusively based on the client's age.

Basically, the older the client, the greater the percentage of the target funds allocated to bond funds rather than equity funds.

That sure sounds good. I mean, who doesn't want an easy retirement solution?

But if successful investing were as simple as knowing your age, then everyone would get it right.

Yet all of the big brokers push these "Target Retirement Funds" now.

Vanguard, Fidelity, T. Rowe Price, Schwab...

And they push them to everyone.

Income investors, retirees, would-be retirees... They even now sell funds that you can tailor to the age when your children will head to college... as if the market cared about our children's ages, too, let alone ours.

Russ found this out just in time...

So Much for "Safety"

My client is 86 years old, and when he told me about his target fund and its underperformance versus my income allocations, I immediately suspected that most of his money was allocated to long-term Treasury and corporate bonds.

Indeed.

Stocks, private-equity funds, business development corporations (BDCs), and other nontraditional income-generating assets have done very well this year.

But bonds, and particularly long-term Treasury bonds, have had a very rough go of it.

For example, the iShares 20+ Year Treasury Bond ETF (TLT), an exchange-traded fund (ETF) that tracks the performance of an index of public obligations of the United States Treasury with a remaining maturity of 20 or more years, is down nearly 17% over the past 12 months.

So much for those "safe" long-term Treasury bonds...

The chart here of TLT shows the bearish trend in this once-hot market segment.

Here's the Problem One reason why Russ' target fund has disappointed this year is because these funds follow an easy-to-understand formula called the "rule of 100."

This rule states that if you want to find out how much of your investment capital you should put into equities, and how much you should put into bonds, then subtract your age from 100, and the resulting sum is how much of your portfolio you should have allocated to equities. The rest is what you should have in bonds. So, if you are 86 years old, then just 14% of your money should be in equities, and the rest in bonds.

Yet given how poorly many bond segments have performed in 2013, this rule has been a miserable failure for income investors.

And this "rule" will continue holding you back from achieving your goals.

You can thank a long-term trend of rising interest rates for that...

The Inevitable Shift Has Begun

The inevitable shift toward rising interest rates, i.e., falling bond prices, means many older investors will be grossly over-allocated to one of the worst-performing market segments at the time when they need income most. With bank savings, CDs, and other "safe" investments yielding next to nothing, income investors simply cannot afford to uncritically follow the formulaic underpinnings at the crux of these target funds.

Today, investors need to be more involved, more aggressive, and just plain smarter when it comes to making investment allocations in their income portfolios.

The plain truth is that the new bond landscape demands that your strategy change along with it. In the current environment, you simply cannot buy and hold long-term bond funds, or formulaic target funds, and hope to achieve the kind of yield and share price appreciation required to generate the total return results that many income investors enjoyed during the bond bull prior to 2013.

It's just not enough today to wait around passively for your income holdings to eke out a 2% gain, the way Russ' did. That barely keeps up with inflation, and it definitely doesn't give you the kind of income most of us need to live the way we want to live.

How I Fixed the Problem

In the end, I advised Russ to exit his Total Retirement Fund, and stop relying on outdated allocation strategies, like the "Rule of 100."

He's much better off in "total return" holdings, like Apollo Investment Corp. (Nasdaq: AINV) which we covered right here, and Kinder Morgan Energy Partners LP (NYSE: KMP), another long-term winner.

After just a few weeks, the move has already paid off for Russ...

More from Robert Hsu:
My Favorite Kind of Money

Thursday, February 6, 2014

Google Play Continues to Gain Share in Apps Downloads

Apps downloads for the month of January show that the Google Play store from Google Inc. (NASDAQ: GOOG) gained another point of market share in the two-company battle with the App Store from Apple Inc. (NASDAQ: AAPL). Google Play now claims 38% of the market between the two players, up from 37% in December and 35% in August 2013. The Appstore from Amazon.com Inc. (NASDAQ: AMZN) is not yet included in the data reported by research firm Distimo.

Looking at revenue generating apps, of the five most popular apps at Google Play four are either productivity, personalization, or music player apps. Minecraft – Pocket Edition is the only game in the top five paid apps at Google's store.

The App Store and Amazon's Appstore also boast the only paid games in their respective top five from publicly traded companies: Heads Up! from the Warner Bros. division of Time Warner Inc. (NYSE: TWX) at the App Store and Scribblenauts Remix, also from Warner Bros., at the Appstore. Temple Run: Oz, from The Walt Disney Co. (NYSE: DIS) is the fourth most popular paid app at the Appstore.

Facebook Incl. (NASDAQ: FB) supplies two of the top five free apps at Google Play: Facebook and Facebook Messenger. The only free game in the top five at Google play is Candy Crush Saga, which has fallen out of the top five at the App Store. Pac-Man, normally a paid app, was available free for one week in January and resulted in the game vaulting to fourth in free apps available from the App Store.

Combined revenues at the App Store and Google Play rose by 1% in January compared with December 2013 revenues. Since August App Store revenues have risen by 27% while revenues at Google Play have risen by 44%.

Wednesday, February 5, 2014

Lose weight with an app and a webcam

A personal trainer on your smartphone   A personal trainer on your smartphone NEW YORK (CNNMoney) Don't have time to hit the gym or work out with a personal trainer?

An internet connection might help you lose those pounds or pump up those muscles -- without even leaving the house.

No, this isn't one of those ads for a magic weight-loss pill. Services like Wello let you to work out with a personal trainer, using just a webcam and your web browser.

It works kind of like Microsoft's (MSFT, Fortune 500) Skype or a Google (GOOG, Fortune 500) Hangout, but everything is done through Wello's website, and there's no need to download any software. Just log on and find a trainer that suits your needs: yoga, pilates, aerobics and strength training are some of the categories.

Roll out your yoga mat in your living room, kitchen or backyard and start your class.

Group classes cost $14 and one-on-one sessions with a trainer are $29.

Maria Kinglsey is teacher in New York who found it inconvenient to fit the gym into her busy schedule. Now, she does one-hour workouts from her Manhattan living room through Wello, even though the trainer behind the webcam can be on the other side of the country.

"It's just really functional, useful and convenient for busy people," Kinglsey told CNN.

Some apps can also serve as a virtual trainer. A company called Passion4Profession has a particularly good abdominal muscles exercise routine.

Hit the floor, prop your cell phone or tablet on the mat and the app takes you through a series of eight abs exercises in eight minutes. The app is free to download, as is the first level. After that you have to watch a short ad before the session begins.

The app counts you through each crunch and registers each set you complete. It even builds in rest time so you can catch your breath.

Another company, Runtastic, offers a fleet of workout apps, including a free app to track your push ups.

Get in position and set your phone on the ground face up. The app counts pushups when your nose touches the screen of the phone. That way it makes you go the way down. No cheating.

Some of these apps say to consult a doctor before you use them.

Dr. Tara Narula, a cardiologis! t at Lenox Hill hospital in New York, says the apps are safe for most people and most workouts.

"If you're beginning a low to more moderate exercise and you're a relatively healthy person, then you don't really need to see a doctor and have a stress test," she says. "If you have a heart disease or history of other risk factors and you're planning to do a moderate or vigorous exercise, then see your doctor for an evaluation first."

But with more than one-third of the entire world overweight she says trying out these new tech approaches to exercise and weight control are worthwhile.

Hot Forestry Stocks To Buy For 2015

"They really make it easier for people to work out and that's ultimately what we want: people to find ways to incorporate working out and exercise into their daily lifestyle and routine so it becomes habit." To top of page

Sunday, February 2, 2014

KR – Start Shopping Now for Kroger Stock

Facebook Logo Twitter Logo RSS Logo Louis Navellier Popular Posts: The Only 2 Retail Stocks to Buy Now17 Stocks With Ex-Dividend Dates to Put on Your RadarDon’t Try Bottom Fishing These 2 Stocks Recent Posts: KR – Start Shopping Now for Kroger Stock Buyout Buzz: Time To Buy Verizon or Time Warner? 17 Stocks With Ex-Dividend Dates to Put on Your Radar View All Posts

Welcome to the Stock of the Day!

Kroger This morning, all eyes are on Kroger (KR), which just reported its 40th consecutive quarter of identical supermarket sales growth. With such a stellar sales track record, why are shares down? Is this a buying opportunity?

Find out now.

Company Profile

With 2,631 supermarkets across 34 stores, Kroger is known for being the nation’s largest traditional supermarket operator. But what many don’t know is that the Kroger umbrella also covers nearly 1,200 gas stations, 800 convenience stores, over 300 jewelry stores and 37 food processing facilities.

In total, Kroger brought in $96.8 billion in 2012 and analysts expect 2013 sales to total up to $98.95 billion.

Earnings Buzz

Grocery chain operator Kroger posted solid operating results for the third quarter. The company posted a 3.5% year-on-year jump in identical supermarket sales (excluding fuel sales), marking the 40th consecutive quarter of growth.

Total revenue climbed 3% to $22.51 billion, missing the $22.72 billion consensus estimate by a hair. Over the same period, net income declined 6% to $299 million, or 57 cents per share. These results include a tax benefit and expenses related to the company’s pending merger with Harris Teeter.

Excluding special items, adjusted earnings were 53 cents per share, in line with analyst estimates. Looking ahead to fiscal 2013, Kroger expects between 8% and 11% earnings growth and 3% to 3.5% identical supermarket sales growth.

Competition Breakdown

Currently, out of the 48 companies in this industry, Kroger ranks 11th on market cap (the largest player in the business is Tesco PLC). Kroger stands out in terms of return on equity (second) and its 1.6% annual dividend yield (seventh). It also ranks above the industry average on earnings growth (15th), sales growth (16th) and long-term growth rate (17th).

When you compare Kroger with its big rivals—Costco (COST) and Target (TGT)—you see that KR is the best buy right now. Both COST and TGT are struggling to attract institutional buying pressure, with C- and F-rated Quantitative Grades respectively.This indicates that these two stocks have become riskier to invest in of late.

Meanwhile, the other two lag behind Kroger in terms of sales growth, operating margin growth, earnings growth, earnings surprises and cash flow. COST is a C-rated hold while TGT is a D-rated sell.

Current Ratings

Before you buy any stock, you should always run it through my free Portfolio Grader ratings system. Kroger has improved significantly over the past 12 months; this time last year, KR was a C-rated hold. Since then, buying pressure has made a complete reversal as institutional interest for KR has gained steam. Currently, KR receives an A for its Quantitative Grade.

As I mentioned earlier, Kroger has also improved its fundamentals, notably operating margin growth and return on equity (both A-rated). Kroger also scores well on earnings growth and cash flow (both B-rated). Meanwhile, the company could stand to work on its sales growth and its track record of beating analyst estimates, but overall it still receives a B for its Fundamental Grade.

Bottom Line: As of this posting, I consider Kroger a B-rated Buy.

Saturday, February 1, 2014

Winning IRA Strategies for 2014

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IRAs are among the most valuable assets most of us own, especially after we leave an employer and roll over the 401(k) account to an IRA. For people who spent most of their careers as employees, the principal home and the IRA vie for the most valuable asset. Even small business and rental real estate owners often have substantial sums in IRAs. The amount of money in IRAs is climbing as the population gets older, and most people have more than one IRA.

That’s why it is a shame that the value of most IRAs and other qualified retirement plans isn’t being maximized. IRA wealth is drained by unnecessary taxes and fees and by strategies that are less than optimal.

People don’t focus on the key strategies that can make an IRA more valuable in their lifetimes and beyond. Of course you plan for the IRA to ensure your financial independence, and many people would like to leave at least part of their IRAs to their heirs. Actions you take now can increase or decrease the amount your heirs will receive after taxes.

Resolve this year to adopt at least a few of the strategies that will improve the management and after-tax value of your IRA. (Many of these strategies apply to other qualified retirement plans, such as 401(k)s.) You probably won’t benefit from each of these strategies, but you should consider them and decide which will increase the value of your IRA.

Own the right assets. IRAs have some tax advantages. With traditional IRAs, you might receive a deduction for contributions. Earnings and gains of the IRA compound tax-deferred until they are withdrawn. With the Roth IRA, you receive no upfront tax benefit for contributions. The income and gains compound tax free, and distributions from the Roth generally are tax free.

You pay a price for the tax benefits of the traditional IRA, a price you can think of as a mortgage on the IRA. When money other than nondeductible contributions is withdrawn from the IRA, it is taxed as ordinary income. That means tax-advantaged long-term capital gains and dividends are converted to higher-taxed ordinary income.

You can minimize the negative effects of this conversion by having the IRA own the right assets when possible. My research, which has since been backed by other research, reveals that assets paying ordinary income are best held in IRAs, either a traditional or Roth. These investments include high-yield bonds, real estate investment trusts, and investment grade bonds. Also, stocks, mutual funds, and other investments that tend to be owned for less than one year generate short-term capital gains and are best owned through an IRA. Investments that generate long-term capital gains, such as stocks and mutual funds held for more than one year, should be owned in taxable accounts, as should those that earn qualified dividends.

You also might own nontraditional investment assets, such as real estate, small business interests, gold, and master limited partnerships. There could be tax consequences to owning these investments in IRAs, and some are prohibited in IRAs. Be sure you know the tax rules for investing IRAs before you buy nontraditional assets. You can find details in my report, IRA Investment Guide, available through the Bob’s Library tab on the web site.

Owning assets in the right accounts reduces your tax burden, increasing after-tax wealth for you and your family. Of course, you don’t want to let the tax law dictate your portfolio allocation. For example, if you don’t have enough money outside an IRA to fully fund your desired stock allocation, buy some of the stocks through an IRA. Asset allocation comes first, and tax strategies second.

Practice tax diversification. No one can forecast how the tax code will change over time. Different types of accounts have different tax treatments now, but that could change. Tax rates also could change. You shouldn’t try to predict these changes.

Instead of forecasting one tax outcome and arranging your finances accordingly, it’s safer to have different types of accounts so you won’t be burned completely in any scenario. Try to spread your investments among taxable accounts, traditional IRAs, and Roth IRAs. You might even want to put some money in an annuity if that’s appropriate for you.

Spend accounts in the right order. The order in which you draw down your different accounts affects how long your nest egg lasts, primarily because of the tax law. As a general rule, it’s best to spend taxable accounts first, traditional IRAs and other tax-deferred accounts next, and Roth IRAs last. Spending in this order makes your wealth last a few years longer. This is another issue we discussed in detail in past visits and the details are available on the web site Archive and in my books.

Review your beneficiaries. Most estate planners have horror stories of people who haven’t changed their beneficiaries for decades and have their IRAs going to ex-spouses, siblings instead of their spouses, or deceased relatives. There are some interesting court cases in which ex-wives and other unexpected beneficiaries inherited IRAs because the beneficiary form wasn’t updated.

Other people name their estates or other entities as beneficiaries (or fail to name a beneficiary). Those actions trigger rules that require the IRA to be distributed quickly after they pass away, causing unnecessary tax bills.

Be sure to review your beneficiary forms regularly and any time there is a change in your family. This should be part of a regular estate plan review. In some cases, you’ll want to name a trust as beneficiary, but you’ll have to navigate complicated tax rules to do this effectively. Discuss with your estate planner the effects of choosing different beneficiaries.

Convert to a Roth. Every year, consider whether it makes sense to convert all or part of a traditional IRA into a Roth IRA. We discussed in detail in past visits how to decide, and those discussions are available in the IRA Watch section of the Archive on the members’ web site and in my books. Whether conversion is a good idea for you depends on factors such as the expected rate of return, the difference between your current tax rate and future tax rates, the source of the cash to pay the taxes, whether future required minimum distributions would exceed your spending needs, and more.

Many people find as they get older the required minimum distribution rules generate much higher annual distributions than they need, causing unnecessary tax bills. Converting to a Roth IRA avoids this and allows you to control when taxes are paid.

It could be that most years an IRA conversion doesn’t make sense for you. Yet, one year you might have an unexpected opportunity to make a conversion at low cost when you have a sharp drop in income or a large offsetting deduction. That’s why you review the decision every year. You don’t want to miss an opportunity to create a stream of tax-free income.

Consolidate or split? I’m a big advocate of simplifying your finances, and that often means consolidating your finances at one financial institution and in as few accounts as possible. Many people have multiple IRAs, and simplifying means rolling them over into one IRA when practical.

There are exceptions to every rule. Suppose you have multiple heirs and expect an IRA to be a significant legacy to them. You could name all the heirs as joint beneficiaries of the IRA and let them decide what to do with the account after they inherit. Or you could split the IRA now and name one person as the primary beneficiary of each. If the heirs aren’t likely to agree on how to manage an IRA, you might want to split the IRA now.

Consider charity. When you’re going to leave part of your estate to charity, the most tax efficient way to do that might be to name the charity as a beneficiary of an IRA. When individuals receive distributions from an inherited IRA, they must pay income taxes on the distributions just as the owner would have. The beneficiary receives only the after-tax value of the IRA. But individuals can receive most other types of assets from an estate free of income and capital gains taxes. A charity, on the other hand, doesn’t pay taxes on IRA distributions it receives as a beneficiary. The charity receives the full benefit of its share of the IRA. It’s more tax efficient to make a charitable bequest through an IRA when you can.

Don’t forget catch-up contributions. When you’re still working and making contributions to IRAs, you can make higher catch-up contributions when you’re age 50 or older. In 2013, the maximum contribution for those 50 and over is $6,500, instead of $5,500, for both traditional and Roth IRAs and is unchanged for 2014.

Consider spousal contributions. Generally IRA contributions can be made only to the extent you have earned income from a job or business. There’s an exception for married couples when one spouse has earned income and the other has little or no income. When they file a joint return, contributions to separate IRAs for each spouse can be made up to the maximum. That means a couple age 50 or older can contribute $6,500 to an IRA for each spouse for a total of $13,000, even when only one spouse has a job.

Required distributions. People continue to make mistakes when taking and computing required minimum distributions after age 70½. The IRS has been lax on this in the past but is stepping up its tracking and enforcement. Be sure you are taking required distributions on time and in the right amounts.