Sunday, March 30, 2014

Why Cameco Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, uranium producer Cameco (NYSE: CCJ  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Cameco and see what CAPS investors are saying about the stock right now.

Cameco facts

Headquarters (founded)

Saskatoon, Canada (1987)

Market Cap

$7.8 billion

Industry

Coal and consumable fuels

Trailing-12-Month Revenue

$2.4 billion

Management

CEO Timothy Gitzel (since 2011)

CFO Grant Isaac (since 2011)

Return on Equity (average, past 3 years)

8.3%

Cash/Debt

$814.7 million / $1.6 billion

Dividend Yield

2%

Competitors

AREVA

BHP Billiton

Rio Tinto

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 1,834 members who have rated Cameco believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star Chemdawg, succinctly summed up the Cameco bull case for our community:

[R]eactors coming back online slowly but the uranium is so cheap it is not economical to mine. [T]hat won't stay that way long. Cigar Lake is due to start actually producing this year. [S]ometimes being the best has its advantages ... you stay alive when the weaker ones go 10 toes up. [O]utperform.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Cameco may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The Tiny Gold Stock Digging Up Massive Profits," which uncovers a smaller miner with big potential. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Saturday, March 29, 2014

Why GameStop, TriNet Group, and Restoration Hardware Jumped Today

On Friday, investors responded positively to favorable economic news, with favorable readings on personal income and spending pointing to the resiliency of the American consumer, even in the face of tough winter conditions that many businesses have blamed for temporary shortfalls in revenue and earnings. Even though the broader market gave up most of its gains from earlier in the day, GameStop (NYSE: GME  ) , TriNet Group (NYSE: TNET  ) , and Restoration Hardware (NYSE: RH  ) all managed to hold onto large advances in their respective share prices going into the weekend.

GameStop jumped 9% Friday, more than making back its losses from yesterday following a quarterly report that initially disappointed investors. The video game retailer saw same-store sales rise 7.8%, but adjusted earnings fell 12%. Despite favorable guidance for 2014, investors worried about the prospect of tougher competition from Wal-Mart (NYSE: WMT  ) and other retailers, as well as steps from video game makers to eliminate the need for GameStop's middleman services. Analysts at Sterne Agee accentuated the positives in GameStop's report today, with expectations that earnings growth and GameStop's investor day next month could send the stock higher this year if the video game industry generally prospers from the PlayStation 4 and Xbox One. Moreover, initiatives to broaden GameStop's scope to sell other electronics could be a good way to use its store base, even if other companies have struggled selling those electronics on their own.

Newly public TriNet Group rose another 11.5%, adding to its positive performance on Thursday in its first day of post-IPO trading. The human-resources outsourcing company is jumping onto the trend toward cloud-based office support, following in the footsteps of Workday (NYSE: WDAY  ) in its effort to cater to small- and medium-sized businesses searching for ways to support their employees without having full-time HR staff. With shares up a third from its offering price of $16 per share, TriNet has inspired solid support among investors hoping to cash in on the growth prospects that serving smaller enterprise customers offers.

Restoration Hardware soared 13% despite reporting weaker-than-expected sales in its holiday quarter. Shareholders responded favorably to positive guidance from the home-furnishings retailer, with earnings expectations for the current quarter that are 25% to 60% higher than the consensus forecast. The guidance signals better gross margins for Restoration Hardware, as revenue growth hasn't come in quite as strong as many had thought the company would manage. But with same-store sales growth of 24%, Restoration Hardware has come a long way from its brush with disaster just a few short years ago.

Three stocks that could become your next huge winner
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have done it before, and now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.

Friday, March 28, 2014

Amgen: Overlooked, Worth Buying, Morgan Stanley Says

Biotech stocks have been slammed recently and Morgan Stanley believes it’s time to start differentiating between the fundamentals of companies like Amgen (AMGN), Biogen Idec (BIIB), Celgene (CELG) and Gilead Sciences (GILD).

Shares of Amgen have dropped 1% this month, while Biogen Idec has fallen 9.5%, Gilead Sciences has declined 13% and Celgene is 0ff 11%.

Morgan Stanley decided that those drops made it a fine time to resume coverage of the biotech sector. That’s allowed it to come at companies like Amgen with a clean slate and consider what investors might have missed, both good and bad, as the sector surged during the past three years, and then sold off. Analysts Matthew Harrison and David Friedman explain:

Over the last 5 years, there have been extraordinary changes and major de-risking events at most of the large biotechnology companies. Total revenues for the major 4 biotechs (Amgen, Biogen, Celgene and Gilead) are expected to move from a total of $175B over the last 5 years to a total of $335B over the next 5 years. And if you exclude Amgen which is a more mature company, we expect total revenues to move from $94B to $229B, or 2.5x the prior period.

Based upon these fundamental changes in the business prospects for these companies, the market has rewarded the significant progress seen across the industry. The average 1 year forward P/E multiple for the 4 large caps has expanded from 13x vs the S&P to 16x (S&P of 14.5x) over the last 3 years and the cumulative performance of the industry has been multiples above the market with the major 4 biotechs rising ~328% over the last 3 years compared to 143% for the S&P, or 2.3x…

During the rapid expansion of the industry and its valuation over the last 3 years have: a. Risks been overlooked in the exuberance? b. Reasonable scenarios priced into stocks such that they are fairly valued? c. Or is there still upside based upon fundamental operating drivers?

When it comes to Amgen, at least, Harrison and Friedman believe it’s been overlooked because of its “lack of mega blockbusters.” They explain:

[As] investors have only focused on the mega blockbuster, we believe they have overlooked the fundamental flexibility in Amgen's business – including the significant margin flexibility that comes with the Enbrel stepdowns (we estimate ~$1.4B through 2016) – that will allow it to deliver predicable, growing (or stable in a downside scenario) cash flows. And deliver more of that money than its peers to shareholders through its aggressive capital allocation program. Thus, Amgen offers much more downside support than its peers and a pipeline which when considered in aggregate can grow the cash flows and likely deliver that growth to investors in much less risky way than the estimated growth at its peers.

Harrison and Friedman initiated Amgen and Biogen with Buy ratings but slapped Neutral ratings on Gilead and Regeneron.

Shares of Amgen have gained 1.9% to $122.39 at 11:09 a.m., while Biogen Idec has risen 0.4% to $307.17, Gilead Sciences has dropped 0.9% to $72.07 and Regeneron has fallen 0.4% to $141.99.

Thursday, March 27, 2014

10 Best Wireless Telecom Stocks To Invest In 2014

For every stock you buy, does it have a catalyst?

Yes? No?

Most stock articles you read always include some sort of upcoming catalyst that is going to propel the stock higher. Heck, even ValueInvestorsClub requires every stock pitch to have a catalyst. But to invest only in stocks with clear catalysts defeats the purpose of value investing.

Catalysts are not important, nor are they required for an investment.

Take it from the man who defined value investing, Ben Graham. He just wanted one thing and spent his days with Walter Schloss searching for it.

Cheap stocks.

Warren Buffett also wants to buy one thing.

Awesome companies.

Neither mentioned anything in any of their writings about seeking a catalyst to make a successful investment. In fact, they told you the opposite.

Sit and wait, they said.

The problem is that sitting and waiting is torture today. There has to be action. There have to be fast moves up and if something does not play out within a few months, it�� a dud and not worth keeping any longer. ��ext!��/p>

10 Best Wireless Telecom Stocks To Invest In 2014: Sprint Corp (S&LS)

Sprint Corporation, incorporated on May 10, 2012, offers a range of wireless and wireline communications services to consumers, businesses and government users. On July 10, 2013, the Company, SoftBank Corp. and Sprint Nextel Corporation (Sprint Nextel) completed the merger. In the Merger, Sprint Corporation was merged into Sprint Nextel, New Sprint became the parent company of Sprint Nextel, with Sprint Nextel becoming its direct wholly owned subsidiary, and Sprint Nextel changed its name to Sprint Communications, Inc.

The Company develops, engineers and deploys technologies, including the first wireless fourth generation (4G) service from a national carrier in the United States; offering mobile data services, prepaid brands, including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities, and a global Tier 1 Internet Service. The Company also offers unlimited data services.

Advisors' Opinion:
  • [By Holly LaFon]

    Since Wilmers & Co. took over M&T Bank in 1983 the bank has acquired 23 banks and Savings and Loans (S&Ls) ��expanding from a single state to seven ��and assets have grown from $2 billion to $110 billion. M&T's branch count has grown from 60 to over 870. The bank currently boasts a customer base of over 2 million retail household customers and nearly 220,000 commercial customers.

10 Best Wireless Telecom Stocks To Invest In 2014: Vodafone Group PLC (VOD)

Vodafone Group Plc (Vodafone), incorporated in 1984, is a mobile communications company operating across the globe providing a range of communications services. The Company offers a range of products and services, including voice, messaging, data and fixed-line solutions and devices to assist customers in meeting their total communications needs. Vodafone has a global presence, with equity interests in over 30 countries and over 40 partner markets worldwide. It operates in three geographic regions: Europe, Africa and Central Europe; Asia Pacific, and the Middle East, and has an investment in Verizon Wireless in the United States. In October 2010, Vodafone Global Enterprise, the business within Vodafone, announced the acquisition of two telecom expense management (TEM) companies, Quickcomm and TnT Expense Management. In November 2011, the Company sold 24.4% interest in Polkomtel in Poland. In March 2012, Verizon Wireless, which is a joint venture of Verizon Communications Inc. and Vodafone, purchased the operating assets of Cellular One of Northeast Pennsylvania from the Company. In April 2012, its Netherlands-based division, Vodafone Libertel BV, acquired Telespectrum-DJ. On October 31, 2012, the Company acquired TelstraClear Limited. In May 2013, Vodafone Group Plc announced launch of its carrier services business unit.

In Europe, the Company�� mobile subsidiaries and joint venture operate under the brand name Vodafone. Its associate in France operates as SFR and Neuf Cegetel, and its fixed-line communication businesses operate as Vodafone, Arcor, Tele2 and TeleTu. Vodafone�� subsidiaries in Africa and Central Europe operate under the Vodafone brand, or in the case of Vodacom and its mobile subsidiaries, the Vodacom and Gateway brands. Its joint venture in Poland operates as Polkomtel and its associate in Kenya operates as Safaricom. The Company�� subsidiaries and joint venture in Fiji operate under the Vodafone brand, and its joint venture in Australia operates under the brands V! odafone and 3. The Company�� associate in the United States operates under the brand Verizon Wireless.

Vodafone has an international customer base with 370 million mobile customers across the world as of March 31, 2011. Vodafone also caters to all business segments ranging from small-office-home-office (SoHo) and small-medium enterprises (SMEs) to corporates and multinational corporations. Through its subsidiaries, Vodafone directly owns and manages approximately 2,200 stores around the world. The Company also has around 10,300 Vodafone-branded stores run through franchise and exclusive dealer arrangements.

The Company�� range of handsets covers all its customer segments and price points, and is available in a variety of designs. During the fiscal year ended March 31, 2011 (fiscal 2011), 14 new handsets were released under its own brand and it shipped 5.8 million. In addition to handsets, it supplies a range of connected smart devices. It supplies the iPhone in 19 markets. During fiscal 2011, the Company launched its USB stick based on 4G/LTE technology in Germany and Verizon Wireless launched in the United States.; Vodafone WebBox; a smartphone roaming data plan that allows the European customers to use their home data plan abroad for only 2 a day to access the Internet, emails and applications; the Android-powered Vodafone 845 and 945 devices; Vodafone TV services; Vodafone 252, which comes pre-loaded with Vodafone M-Pesa for mobile payment services and a prepaid balance indicator that helps customers to keep track of their phone credit to avoid overspending; Vodafone M-Pesa in South Africa, Qatar and Fiji; 3G services in India, and LTE services by acquiring LTE spectrum in Germany.

The Company is a carrier of mobile voice traffic in the world providing domestic, international and roaming voice services to more than 370 million customers. Its networks sent and received over 292 billion text, picture, music and video messages during fiscal 2011. The Company ! serves mo! re than 75 million customers with data services, which allow access to the Internet, email and applications on their phones, tablets, laptops and netbooks. The Company provides a range of data products, including Machine-to-machine (��2M�� connections, which allow devices to communicate with one another via built-in mobile SIM cards; Third party billing; Financial services; Near field communication (��FC��, and Mobile advertising. The Company, as of March 31, 2011, served 5.3 million M2M connections around the world. NFC allows communication between devices when they are touched together or brought within a few centimetres of each other. The Company has mobile advertising business in 18 countries with a range of capabilities. Over six million customers use its fixed broadband services in 13 markets to meet their total communications needs. In addition, through Gateway, it provides wholesale carrier services to more than 40 African countries. Other service revenue includes business managed services, such as secure remote network access, and revenue from mobile virtual network operators generated from selling access to its network at the wholesale level. The Company�� enterprise customers range from small-office-home-office (��oHo�� businesses and small to medium-sized enterprises (��MEs��, through to domestic and multinational companies. The Company has 34 million enterprise customers accounting for around 9% of all customers and around 23% of service revenue. The Company focuses on SoHos and SMEs to provide customers with integrated fixed and mobile communications solutions. Vodafone Global Enterprise manages the communication needs of over 560 of the multinational corporate customers. It provides a range of managed services, such as Central Ordering, Device Manager, Spend Manager Solutions, Invoice Manager, Vodafone Neverfail and Telecoms management. The Company offers a range of total communications applications, as well as services for enterprise and consumer customers. Vodafone Alw! ays Best ! Connected software enables customers to stay connected to the Internet on the available connection wherever they are by automatically managing the switching between connection types including mobile broadband, Wi-Fi and LAN. Vodafone PC Backup is an online back-up and restores service that enables users to remotely store data securely and automatically via their Internet connection.

Advisors' Opinion:
  • [By Dividend Mantra] nounced the sale of it's 45% stake in the Verizon Wireless (VZW) joint venture it started with Verizon Communications Inc. (VZ) back in 2000. It seems almost from the start VZ has been trying to gain 100% control of it's wireless business. And who can blame them? This is a 13-year saga that has finally come to a close.

    I have a fairly substantial position in VOD, as I currently own 150 shares of Vodafone worth $4,801.05based on today's closing value of $32.01 per ADR share. It's important to note that VOD is based in the U.K., and as such I invest in the company through American Depository Receipt shares. Each VOD ADR is worth 10 ordinary shares.

    I've long been a fan of Vodafone.

    I've been a very happy investor in Vodafone, as it carried less debt than other major telecommunication companies, had much less exposure to legacy costs associated with wireline businesses because they're primarily a wireless company and they had broad geographic exposure to Europe, India, Africa, Australia and the U.S. (through 45% of VZW). In addition, it's always seemed that the market discounted it's assets, as they were usually cheaper than most of the other options and generally had higher quality assets that had broader exposure throughout the world.

    But I'm not a fan of this sale.

    I'll be completely honest and admit I'm not a huge fan of this transaction. As a value investor, I would have preferred Vodafone stay intact with wonderful telecom assets throughout the world, a healthy balance sheet, broad exposure and a cheap valuation. However, this sale was bound to happen sooner or later and the time seemed right. Interest rates are still low enough to provide VZ an opportunity to finance a good portion of the deal via newly issued debt and VOD had long had issue with not being able to control the dividend payout from the joint venture because it lacked majority control.

    Management should be commended, however.

    Furthermore, I believe mana

  • [By Selena Maranjian]

    Barrow, Hanley reduced its stake in lots of companies, including Vodafone (NASDAQ: VOD  ) , which holds a 45% stake in the successful Verizon Wireless business, with Verizon�holding the other 55%. Vodafone shareholders are watching to see whether Verizon buys out the remaining 45%. The company may be less attractive without the Wireless stake, so there isn't uniform support for the buyout.

  • [By Tony Reading]

    LONDON -- Vodafone� (LSE: VOD  ) (NASDAQ: VOD  ) is a popular stock with income investors, but some shareholders have become concerned at the increasing fragility of its cash flow.

  • [By WALLSTCHEATSHEET]

    Vodafone seems undervalued given that it is trading at a relatively low forward price to earnings multiple of 11.40, pays an industry-leading 7 percent dividend, and is exposed to several upcoming positive catalysts. There is downside risk in that the European economy��here the majority of Vodafone�� operations are located��ill not recover as quickly as expected. Additionally, those bearish on the stock argue that Vodafone�� high dividend is not sustainable; however, there has been no evidence that its solid dividend history will cease. Given that investors can purchase exposure to several upcoming beneficial catalysts and a high dividend yield for a relatively low price, Vodafone is an OUTPERFORM.

10 Best Insurance Stocks To Invest In Right Now: Rewards Nexus Inc (ERNI)

Rewards Nexus Inc., formerly NIS Holdings Corp., incorporated on June 21, 2004, through its subsidiaries, operates in the loyalty/rewards industry. The Company has launched the Earn IQ rewards program, a consumer loyalty platform-coupled with marketing and advertising services for various industries.

The Company provides consumers with opportunities to interact and engage with online and mobile products. It primarily focuses on various business sectors, including the customer loyalty management market, the gift card industry, the online food ordering industry, and the marketing consulting industry

Advisors' Opinion:
  • [By Peter Graham]

    Small cap stocks Rewards Nexus Inc (OTCMKTS: ERNI), MyEcheck Inc (OTCMKTS: MYEC) and ITonis Inc (OTCMKTS: ITNS) fell 29.6%, 18.92% and 9.09%, respectively, last Friday. Moreover, some of these small cap stocks are already making big moves again this morning - perhaps in part because they have all been the subject of recent paid promotions. So where are these small cap heading this week and for the long term? Here is a quick reality check:

10 Best Wireless Telecom Stocks To Invest In 2014: Intelsat SA (I)

Intelsat S.A., incorporated on July 18, 2011, is a satellite services business, providing a layer in the global communications infrastructure. The Company operates satellite capacity, holds orbital location rights, contract backlog, serve commercial customers and deliver services. It provides diversified communications services to the world�� media companies, fixed and wireless telecommunications operators, data networking service providers for enterprise and mobile applications, multinational corporations and Internet service providers (ISPs). It is also the provider of commercial satellite capacity to the United States government and other select military organizations and their contractors.

The Company has a satellite fleet comprised of more than 50 satellites, covering 99% of the Earth�� populated regions. Its fleet, combined with the IntelsatOne terrestrial fiber network and a collection of teleports, form a singular unmatched global infrastructure to meet any communications requirement. As the provider of satellite services, the Company provides mission critical communication services.

Advisors' Opinion:
  • [By Todd Sullivan]

    HHC has increased all our ownership percentage through the repurchasing of outstanding warrants.

    From the 13D/A
    On December 31, 2013, certain of the Reporting Persons entered into swaps for the benefit of certain Pershing Square Funds. Under the terms of the swaps, (i) the relevant Pershing Square Funds will be obligated to pay to the bank counterparty any negative price performance of the 5,399,839 notional number of Common Shares subject to the swaps as of the expiration date of such swaps, plus interest rates set forth in the applicable contracts, and (ii) the bank counterparty will be obligated to pay the relevant Pershing Square Funds any positive price performance of the 5,399,839 notional number Common Shares subject to the swaps as of the expiration date of the swaps. During the term of the swaps, cash will be paid by the bank counterparty to the relevant Pershing Square Fund in an amount equal to the amount of notional distributions or dividends paid by the Issuer in respect of such notional number of Common Shares. All balances will be settled in cash. The Pershing Square Funds��counterparties for the swaps include entities related to Citibank, Nomura, Soci茅t茅 G茅n茅rale and UBS. The swaps do not give the Reporting Persons direct or indirect voting, investment or dispositive control over any securities of the Issuer and do not require the counterparty thereto to acquire, hold, vote or dispose of any securities of the Issuer. Accordingly, the Reporting Persons disclaim any beneficial ownership of any Common Shares that may be referenced in the swap contracts or Common Shares or other securities or financial instruments that may be held from time to time by any counterparty to the contracts.

10 Best Wireless Telecom Stocks To Invest In 2014: China Teletech Holding Inc (CNCT)

China Teletech Holding, Inc., formerly Guangzhou Global Telecom, Inc., incorporated on March 29, 1999, is a distributor of pre-paid calling card and integrated mobile phone handsets and a provider of mobile handset value-added services. The Company serves as one of principal distributors of China Telecom, China Unicom, and China Mobile products in Guangzhou City. The Company is also developing an on-line refill platform with China Mobile to develop its on-line business in the Guangdong Province. On March 30, 2012, the Company acquired China Teletech Limited.

The Company operates its business through its subsidiaries in China: Guangzhou Renwoxing Telecom Co., Ltd., Guangzhou Global Telecommunication Co., Ltd., Guangzhou Rongxin Technology Co., Ltd., and Shenzhen Rongxin Investment Co., Ltd. The Company also engages in the business of wholesale and distribution of mineral water, as well as trading of wine in China. The Company has cooperative distribution relationships with Panasonic, Motorola, LG, GE, Bird, Samsung corporations for their mobile handsets.

Advisors' Opinion:
  • [By MARKETWATCH]

    HONG KONG (MarketWatch)-- Hong Kong stocks rose early Thursday, as China Mobile Ltd. shined on news of iPhone pre-orders hitting 1 million units. The Hang Seng Index (HK:HSI) added 0.6% to 23,032.09. Market heavyweight China Mobile (HK:941) (CHL) rallied 0.9%, as the world's largest mobile carrier said it has received more than 1 million pre-orders for the iPhone before it goes on sale in the carrier's stores on Friday, at a time when Apple Inc. (AAPL) Chief Executive Tim Cook visited Beijing for future cooperation between the two giants. Telecom equipment shares also advanced, with ZTE Corp. (HK:763) (ZTCOF) rising 1.2%. Meanwhile, China Mobile's smaller rivals slipped, as China Unicom (HK:762) (CHU) dropped 0.7%, and China Telecom (HK:738) (CNCT) fell 0.5%. China South City Holdings (HK:1668) , a developer of logistics and trade centers, surged 56%, after the company announced that Internet giant Tencent Holdings (HK:700) (TCTZF) would invest about 1.5 billion Hong Kong dollars ($195 million) for an almost 10% stake in the developer in order to expand their business online, including e-commerce and online payment services. Tencent Holdings (HK:700)

10 Best Wireless Telecom Stocks To Invest In 2014: TechnoConcepts Inc (TCPS)

TechnoConcepts, Inc. (TCI), incorporated in May 2003, is in the business of designing, developing, manufacturing and marketing wireless communications semiconductors. The Company has begun manufacturing wireless transmitter and receiver microchips, based on its technology, and produced its engineering run in August 2006. The technology, which TCI calls True Software Radio, is designed to improve the way that wireless signals are received and transmitted, by making possible device-to-device communication across otherwise incompatible networks and wireless standards. On October 17, 2005, the Company, through its wholly owned subsidiary, Asante Acquisition Corp. completed reorganization with RegalTech Inc. RegalTech's name was changed to Asante Networks Inc. (Asante).

In December 2005, the Company formed Jinshilin Techno Ltd. (Jinshilin Techno) as its wholly owned subsidiary based in Shanghai, China. The Company organized Jinshilin Techno to provide marketing, sales and technical support for True Software Radio technology in China. On April 21, 2006, Jinshilin Techno acquired Internet television (IPTV) set-top box (STB) technology through license agreements with Jinshilin Technologies Development Company Ltd. (Jinshilin). Jinshilin Techno offers an IPTV set-top box that features voice over Internet protocol (VOIP), capability and can receive Internet protocol (IP) data transmissions through the household electrical power grid.

Asante Networks Inc. provides Ethernet networking solutions for Apple Computer and the small-to-medium business retail markets, offering the IntraCore and FriendlyNET product families, integrating voice, data, and video over wireless and wired networks with unified management and authentication. In April 2006, Asante announced the release of 2-chip switch solution, the IntraCore 38480. The IntraCore 38480 provides no frame loss and full-wire speed with minimized latency. With 96-gigabit switching fabric, the IntraCore 38480 supports full-wire speed on all ! ports. It has advanced traffic control based on L2-L7 data of incoming frames.

The Company's True Software Radio technology makes possible for wireless transmitters and receivers, as well as the radio signal processing, to be fully controlled and reconfigured by software commands across a range of frequencies and frequency bands. Its True Software Radio technology is a delta-sigma microchip architecture that converts radio frequency signals directly into digital data for the wireless receiver and directly from digital data into radio signals for the wireless transmitter. True Software Radio microchips replace the analog front end, intermediate frequency (I/F) processing, analog-to-digital conversion (ADC), and digital filtering sections of conventional wireless transmitters and receivers.

Advisors' Opinion:
  • [By Peter Graham]

    Small cap tech stocks TechnoConcepts, Inc (OTCMKTS: TCPS), Unisource Corporation (OTCMKTS: USRC) and Strategic Global Investments, Inc (OTCMKTS: STBV) have been getting some attention lately in various investment newsletters thanks to promotions. Of course, there is nothing wrong with properly disclosed promotions, but they can backfire on the unwary as its really up to investors or traders alike to do their own due diligence before investing or trading. With that in mind, here is a quick reality check about three small cap tech stocks getting a bit of attention lately:

    TechnoConcepts, Inc (OTCMKTS: TCPS) Has the Yield Sign Replaced on Its OTC Page

    Small cap TechnoConcepts is a wireless technology company currently holding patents and other intellectual property. On Friday, TechnoConcepts fell 0.45% to $15.58 for a market cap of $415.28 million plus TCPC is up 1.1% over the past year and up 6% since April 2012 according to Google Finance.

10 Best Wireless Telecom Stocks To Invest In 2014: Stream Group Ltd (SGO)

Stream Group Limited, formerly LongReach Group Limited, is an Australia-based company operating in the information and communications technology (ICT) sector. The Company is engaged in the design, integration, installation and maintenance of integrated information and communications technology based products and services to the defense, public safety and security sectors, as well as for government, telecommunications and corporate customers, both locally and internationally. The Company together with its subsidiaries is also engaged in the provision of consulting services to certain key defense organizations. In January 2013, the Company sold its C4i business. Advisors' Opinion:
  • [By Jonathan Morgan]

    Saint-Gobain (SGO) dropped 3.7 percent to 36.87 euros. Morgan Stanley cut its rating on the stock to underweight, similar to a sell recommendation, from equal weight, saying it doesn�� see a recovery yet in the European building industry and the contribution from emerging markets will slow.

10 Best Wireless Telecom Stocks To Invest In 2014: Lumos Networks Corp (LMOS)

Lumos Networks Corp. is a fiber-based service provider in the Mid-Atlantic region. The Company provides data, broadband, voice and Internet protocol (IP) services over fiber optic network. The Company offers a range of data and voice products supported by approximately 5,800 fiber-route miles in Virginia, West Virginia, and portions of Pennsylvania, Maryland, Ohio and Kentucky. Its products and services include metro Ethernet, IP services, business advantage bundle, managed router service, broadband, voice services and Web hosting. On October 14, 2011, NTELOS Holdings Corp. announced a distribution date of October 31, 2011, for the spin-off of Lumos Networks Corp.

The Company�� broadband services include Business DSL, Dedicated Business Service, Managed Router Services, Business Broadband XL, Business PC Services and Web Hosting. Its IP services include Integrated Access, IP Trunking, IP Centrex and IP Phones. Its voice service include Business Voice, Business Advantage Bundle, nTouch, Intelligent Messaging, Simultaneous Ring, Conference Calling and Long Distance. Its data services include Metro Ethernet and Quality of Service. Lumos Networks Business DSL provides up to six megabits per second downstream and one megabit per second upstream. Its managed router support service equipment includes staging, installation, configuration, and maintenance while support provides around-the-clock monitoring, management and trouble resolution and direct access to networking experts. Its Business Broadband XL offers a selection of high download speeds. Lumos Networks' Integrated Access solution can integrate local voice, long distance, voicemail, and broadband Internet access. Lumos Networks nTouch brings voicemail linking IP Centrex and nTelos Wireless phone.

Advisors' Opinion:
  • [By Lee Jackson]

    Lumos Networks Corp. (NASDAQ: LMOS) is a leading provider of fiber-based bandwidth infrastructure and IP services in key mid-Atlantic markets. It announced last month it had launched its cloud-based hosted call center solution, which provides best-in-class automated call distribution, integrated voice response and call reporting to help organizations manage call volumes more effectively and efficiently. The service operates over Lumos’s carrier-grade, premium optical network, which provides high-speed, resilient access to the call-center cloud service. The consensus price target for the stock is $20.50. Investors are paid a reasonable 2.7% dividend. Lumos closed Thursday at $20.77.

10 Best Wireless Telecom Stocks To Invest In 2014: Ruckus Wireless Inc (RKUS)

Ruckus Wireless, Inc (Ruckus), incorporated August 19, 2002, is a provider of Wi-Fi solutions. The Company�� solutions, which it calls Smart Wi-Fi, are used by service providers and enterprises to solve network challenges. The Company�� products include gateways, controllers and access points. These products incorporate its technologies, including Smart Radio, Smart QoS, Smart Mesh, SmartCell and Smart Scaling. The Company sells its products to service providers and enterprises globally, and as of December 31, 2012, had sold its products to over 21,700 end-customers worldwide. During 2012, the Company added over 10,100 new end-customers. The Company�� enterprise end-customers are typically mid-sized organizations in a variety of industries, including hospitality, education, healthcare, warehousing and logistics, corporate enterprise, retail, state and local government and public venues, such as stadiums, convention centers, airports and outdoor public areas. Effective July 23, 2013, Ruckus Wireless Inc acquired YFind Technologies Pte Ltd.

The Company sells directly and indirectly to a range of service providers, including mobile operators, cable companies, wholesale operators and fixed-line carriers. As of December 31, 2012, the Company had over 65 service provider end-customers, including Bright House Networks, The Cloud (a BSkyB Company), KDDI, Tikona Digital Networks, Time Warner Cable and Towerstream. The Company�� Smart Wi-Fi solutions are marketed under the SmartCell, ZoneDirector, ZoneFlex and FlexMaster brands and include a range of indoor and outdoor access points (APs), long range point-to-point and point-to-multipoint bridges, wireless local area network (LAN), controllers, network management software and gateway systems with integrated advanced wireless software.

The Company�� core Smart Wi-Fi technologies include Smart Radio, Smart QoS, Smart Mesh, SmartCell and Smart Scaling. Smart Radio is a set of advanced hardware and software capabilities that auto! matically adjust Wi-Fi signals to changes in environmental conditions. A primary component of Smart Radio technology is BeamFlex, a smart antenna system that makes Wi-Fi signals stronger by focusing them only where they are needed and dynamically steering them in directions that yield the highest throughput for each receiving device. Another component is ChannelFly, a performance optimization capability that automatically determines, which radio frequencies or channels deliver the network throughput based on actual observed capacity, a key benefit for high-density, noisy Wi-Fi environments.

Smart QoS is a software technology that manages traffic load to enhance the user experience. Smart QoS was developed to handle the increasing volumes of voice over Internet protocol (VoIP) and streaming video traffic. Smart QoS offers automatic prioritization of different traffic types through intelligent analytics that classify, prioritize and schedule traffic for transmission. Smart QoS employs advanced queuing techniques and dedicated software queues on a per device basis to ensure fairness and optimize overall system performance. Smart QoS includes its band steering, rate limiting, client load balancing and airtime fairness techniques.

Smart Mesh is software technology that uses advanced self-organizing network principles to create Wi-Fi backbone links between access points. Smart Mesh automatically establishes wireless connections between individual access points using patented smart antenna technology and self-heals in the event of a failed link.

SmartCell is a key technology behind the Company�� SmartCell Gateway platform that integrates software and specialized hardware deployed at the edge of service provider networks to facilitate the integration of Wi-Fi and cellular infrastructures. SmartCell includes a set of modular software components ,as well as standard network interfaces into the mobile core that enable Wi-Fi to become a standard access mechanism for service ! providers! . Management components provide configuration, user management, analytics, accounting and other operational and maintenance functions.

Smart Scaling uses advanced database management techniques to enable the support of hundreds of thousands to millions of client devices across the Wi-Fi network. Smart Scaling employs intelligent data distribution techniques to extend client information, statistics and other vital user information across any number of nodes within the system without a single point of failure and with linear scalability. Smart Scaling is incorporated in its purpose-built hardware and software, making it capable of supporting hundreds of thousands of access points and user session workloads at the scale required by service providers.

SmartCell Gateway is a platform that integrates software and specialized hardware deployed at the edge of service provider networks to facilitate the integration of Wi-Fi and cellular infrastructures. The Company�� SmartCell Gateway is designed to be vendor-agnostic and can control third-party APs. SmartCell Gateway provides standard-based interfaces into existing and future mobile networks to simplify integration.

SmartCell access point addresses the capacity and density needs of service providers deploying networks within urban environments. SmartCell APs employ modular multimode architecture to enable service providers to deploy Wi-Fi, 3G/4G small cell cellular technology and Wi-Fi mesh backhaul within a single device. This provides operators with the ability to enhance and extend their macro networks, injecting much needed capacity into high traffic user environments with the flexibility to deploy Wi-Fi with Smart Mesh backhaul and upgrade to Wi-Fi with 3G/LTE when and where desired without any mounting or backhaul changes.

The Company�� ZoneDirector Smart WLAN controllers use a intuitive Web user interface to make configuration and administration extremely simple. This software includes a variety of ! advanced ! capabilities such as adaptive meshing, integrated client performance tools, authentication support, simplified guest access and user policy, wireless intrusion prevention, automatic traffic redirection, integrated Wi-Fi client performance tools and robust network management. ZoneFlex access points incorporate BeamFlex adaptive antenna array technology to deliver robust Wi-Fi performance, reliability and capacity. These devices support multiple virtual wireless LANs, Wi-Fi encryption and advanced traffic handling. The Company�� ZoneFlex outdoor Smart Wi-Fi access points and point-to-point and multipoint bridges can be deployed as stand-alone APs or be centrally managed.

In addition to the Company�� hardware products, the Company also sells software products. FlexMaster is a Linux-based Wi-Fi management service platform used by enterprises and service providers to monitor and administrate networks. FlexMaster provides configuration, fault detection, audit, performance management and optimization of remote Ruckus access points or wireless LAN controllers. It offers a single point for management and a number of automated and customized facilities such as an intuitive dashboard. FlexMaster is designed to operate with existing operational support system and features tiered administration to provide managed wireless LAN or cloud-based wireless services.

The Company competes with Cisco Systems, Ericsson; Hewlett-Packard, Motorola and Aruba Networks.

Advisors' Opinion:
  • [By gurujx]

    Ruckus Wireless (RKUS): CFO Seamus Hennessy Sold 50,000 Shares

    CFO Seamus Hennessy sold 50,000 shares of RKUS stock on Sept. 6 at the average price of $15.12. The price of the stock has increased by 1.19% since.

  • [By Rick Munarriz]

    Monday
    The market kicks off a new trading week with Ruckus Wireless (NYSE: RKUS  ) reporting quarterly results on Monday. The provider of wireless systems for the mobile Internet infrastructure market went public in November at $15. It moved lower initially, but the stock has crept into the high teens ahead of Monday's report.

  • [By Lee Jackson]

    Ruckus Wireless Inc. (NYSE: RKUS) is a favorite to maintain a healthy top line growth, with the increased popularity and success of its products and services in the Wi-Fi marketplace. Also, with the sustained shift from the use of PCs to smartphones and tablets, the need for Wi-Fi capacity and coverage solutions will steadily increase. The Deutsche Bank target price for the stock is $14 and should rise, while consensus for this top mid cap name is $23.

10 Best Wireless Telecom Stocks To Invest In 2014: Softbank Corp (SFTBF)

SOFTBANK CORP. is a Japan-based company that provides digital information services. The Company has six business segments. The Mobile Communication segment provides cellular phone services and sells attached cellular phone terminals. The Broadband and Infrastructure segment provides high-speed Internet access services, Internet protocol (IP) phone service, and contents. The Fixed Communication segment provides transmission services for audio and data, as well as exclusive line and data center services. The Internet Culture segment is engaged in the Internet advertising, broadband portal and auction businesses. The Electronic Commerce (E-Commerce) segment sells personal computers (PCs), peripheral devices and software for PC use, as well as provides business-to-business and business-to-customer e-commerce services. The Others segment is involved in the broadcasting media, technology service, media marketing and overseas fund businesses.

Advisors' Opinion:
  • [By Daniel Inman]

    Softbank (JP:9984) � (SFTBF) �rose 2% in Tokyo following a Nikkei report that said the telecoms company�� group operating profit for the first half of the fiscal year likely rose 70% on-year to more than 楼700 billion ($7.13 billion).

  • [By Daniel Inman]

    Shares in Softbank Corp. (JP:9984) � (SFTBF) ���one of the largest constituents on the Nikkei Average ��fell 2.2% after The Wall Street Journal reported that the firm�� Sprint (S) �unit is considering a takeover of its smaller rival T-Mobile US (TMUS) , with a bid potentially coming in the first half of 2014.

Wednesday, March 26, 2014

New Car Sales Forecast: Higher in March

The March forecast for new car sales calls for a year-over-year increase of 2% to a seasonally adjusted annual rate of 15.7 million units according Kelley Blue Book (KBB). The forecast for the quarter, however, calls for a decline of 0.3% compared with the first quarter of 2013.

A senior analyst at KBB said, "[T]he industry should start to bounce back in March. The momentum built in March should set the market up for a big month in April." New vehicle sales in March, including fleet sales, are expected to rise to 1.475 million units, up 23.8% from February. The seasonally adjusted annual rate of sales is expected to rise from 15.3 million units in February of 2014 and March of 2013 to 15.7 million units. Retail sales are forecast to account for 82% of all sales.

KBB expects Chrysler Group LLC to post the biggest year-over-year gain in March, 7.2%. Toyota Motor Corp. (NYSE: TM) is expected to get an increase of 2.3%, while Ford Motor Co. (NYSE: F) is expected to get a 1% boost, and General Motors Co. (NYSE: GM) should see a gain of just 0.4%. Sales for Honda Motor Corp. (NYSE: HMC) are slated to be flat with March of 2013.

Sales at Nissan are forecast to rise 1.7% on the strength of the carmaker’s popular compact crossover Rogue model. Subaru and Toyota also have strong sellers in the compact crossover segment with their Forester and RAV4 models.

KBB's analyst notes:

Consumers are opting for compact crossovers at the expense of segments like mid-size cars, which transact just $1,500 lower. Kelley Blue Book expects mid-size cars to remain mostly flat in March due to big sales of the Toyota Camry, Nissan Altima and Honda Accord, but demand in this segment in 2014 has been weaker than the previous two years.

Carmakers are expected to report sales next Tuesday.

Tuesday, March 25, 2014

Delamaide: Wall St. may tilt fight for Senate

WASHINGTON — Can the chance that a liberal Democrat will chair the Senate Banking Committee tilt the close Senate race in North Carolina against the Democratic incumbent, Kay Hagan?

Apparently it can, according to a report from Politico, a specialized publication that chronicles the goings-on in Washington in minute detail.

The Senate Committee on Banking, Housing and Urban Affairs, which plays a major role in determining Washington policy toward Wall Street, is on the front line of the trench warfare in this year's mid-term elections as Democrats struggle to maintain their majority in the Senate.

Many Democratic incumbents face an uphill battle for re-election and most prognosticators see Republicans picking up at least three or four seats. The North Carolina race is currently rated a toss-up — one of a handful of races that will determine which party controls the Senate.

Hagan is a member of the Banking Committee but focuses more on her other committee memberships and is not campaigning on banking issues.

But well-heeled Wall Street contributors may withhold funding from her because they want to stop Ohio Democrat Sherrod Brown, who is not running for re-election, from becoming chairman of the banking committee if Democrats retain control.

Absolute majority in the Senate may seem illusory when filibuster rules often make it necessary to get 60 votes to pass legislation. The current lineup of 55-45 in favor of Democrats (including two independents) might become 52-48 in favor of Republicans, but the Senate could remain largely gridlocked thanks to filibuster rules that enable the minority to block legislation.

But the party with the majority also gets a majority on all the Senate committees and determines the chairman — a huge factor especially when legislation is hard to come by.

Committee chairmanship is not just a nice perk of seniority. It is the chairman who sets the agenda, schedules hearings, determines witnesses, and otherwise drives the poli! tical debate for the issues covered by that panel.

This powerful role not only influences new legislation but can shape implementation of all existing legislation and goad the government's conduct in one direction or another.

And Wall Street is horrified at the direction that Brown — a passionate advocate of limiting the size of banks and other restrictions — would take government policies on financial regulation.

The current chairman of the banking committee, South Dakota's Tim Johnson, is retiring. Brown, who is only in his second term, is not next in line in terms of seniority. But those who are qualify for other jobs and are likely to choose them.

Jack Reed of Rhode Island is first in line for banking chairman, but is thought to prefer the chairmanship of the Armed Services Committee, which is also opening up.

Chuck Schumer of New York, who is second in line, has been a steady supporter of Wall Street through his long career in the Senate. He would be welcomed by the industry but probably has his sights trained on the leadership position currently held by Harry Reid of Nevada.

Third in line, New Jersey's Robert Menendez, will almost certainly prefer to retain his post as chairman of the Foreign Relations Committee. That would make Brown chairman of the banking panel.

Brown is not Wall Street's only problem, because anti-bank legislation has proven to be one of the truly bipartisan issues in Congress. Brown has won over Republicans like David Vitter of Louisiana to cosponsor legislation that seeks to limit bank size by imposing tougher capital requirements.

And this is precisely why Brown poses such a danger for them. The industry needs someone in the post who would dampen the political backlash against Wall Street, not inflame it.

Brown, for instance, not only commissioned a report from the Government Accountability Office on how government policies subsidize big banks, but as chairman of the Subcommittee on Financial Institutions scheduled a! hearing ! in January to publicize its findings – and to caution the GAO against industry influence as it prepares the second part of the report.

It was Schumer's apparent distaste for the banking post that caught Politico's attention. Those familiar with the New York senator's thinking told the publication that taking a stand on banking issues, one way or the other, would impede his chances of becoming caucus leader, which is his ultimate goal.

If there is a chance Schumer will clear the way for Brown to chair the banking panel, that tilts Wall Street support to Republicans.

"A lot of people on Wall Street would give a lot of money to avoid that outcome," an unnamed "Democratic-leaning executive" told Politico. "People are tired of all the show trials. So if giving to someone like Kay Hagan means you get Brown as chairman? No thanks."

The top Republican on the committee is Mike Crapo of Idaho, a conservative considered more sympathetic to Wall Street complaints about government restrictions. He would be in line to chair the committee if Republicans gain the majority.

Voters in North Carolina, or in other Senate toss-up states like Louisiana and Alaska, may not be aware of it, but their votes could do much to determine the course of financial regulation in the coming years.

Darrell Delamaide has reported on business and economics from New York, Paris, Berlin and Washington for Dow Jones news service, Barron's, Institutional Investor and Bloomberg News service, among others. He is the author of four books, including the financial thriller Gold.

Madoff jury's questions spark legal sparring

NEW YORK — Jury deliberations in the trial of five former Bernard Madoff employees ended for the week with prosecutors and defense lawyers sparring over the answer to jurors' questions about the structure of the Ponzi scheme architect's firm.

Before leaving Manhattan federal court Friday, the panel wrote a note asking U.S. District Court Judge Laura Taylor Swain whether three charges in the 31-count criminal indictment referred only to Madoff's phony investment advisory division while three others related solely to his legitimate broker-dealer business.

Evidence during the trial showed that the divisions were intertwined, with Madoff siphoning money from unsuspecting investment clients to prop up his financially struggling broker-dealer wing.

Four of the ex-employees charged in the conspiracy worked chiefly or exclusively in the investment advisory division. The fifth worked largely on the broker-dealer side, though he also had some duties in the other business arm.

All are accused of knowingly participating in and profiting from the decades-long scam that stole an estimated $20 billion from thousands of average investors, celebrities, charities, financial funds and others.

Prosecutors wrote a proposed five-paragraph jury response that Assistant U.S. Attorney Randall Jackson said was drawn largely verbatim from legal instructions Swain gave the jury before deliberations began on Monday.

Defense lawyers, however, recommended that the judge tell the jurors that guidance on their questions could be found in written copies of her legal instructions — which were given to jurors at the start of the verdict phase.

Swain told both sides to put any additional legal arguments on the issue in writing, with final submissions due by noon Sunday.

The debate capped a week in which deliberations stalled for three days due to one juror's illness. The decision-making phase resumed Friday after defense lawyers and prosecutors agreed to proceed with 11 jurors, one short of! the usual number. Taylor Swain approved the agreement.

The five-month trial is one of the longest white-collar crime cases in Manhattan federal court history. It's also the first Madoff-related criminal proceeding to be weighed by a jury. The disgraced financier pleaded guilty after the scam collapsed in December 2008. He's now serving a 150-year prison term.

The former co-workers face decades behind bars if they're convicted on conspiracy, securities fraud, tax evasion and other charges.

They include Daniel Bonventre, Madoff's former operations manager; Annette Bongiorno, who oversaw accounts of her boss' biggest investment clients; JoAnn Crupi, who had day-to-day responsibility for the investment division bank account; and former Madoff computer programmers Jerome O'Hara and George Perez.

Monday, March 24, 2014

Soaring Lime Prices Squeeze Margarita Fans, Mexican Families

Green limes on yellow tablecloth and round wooden kitchen cutting board. Flickr Open/Getty Images Lime growers in the Mexican state of Michoacan have banded together to set prices of the fruit they sell to packing companies and control supply, spurring inflation that's been above the central bank's target range for the last two months. Members of the Citrus Growers Association of Apatzingan Valley are limiting supply to guarantee a minimum price for producers, said Leonardo Santibanez, an association member and coordinator of its trade events. The policy emptied Michoacan's main citrus market of limes on March 12 after association members told farmers not to harvest their crop that day as the group pushed for a price minimum of 23 pesos per kilo (80 cents per pound), he said. The tactic has helped dry up margarita consumption in Mexico City as the fruit had become the biggest contributor to inflation nationwide, accounting for one third of last month's increase in consumer prices. The unexpected increase in lime costs may combine with new taxes on sodas and junk food that took effect Jan. 1 to pressure inflation expectations further above policy makers' target range, according to Nomura Holdings. "The shock of limes at a time when inflation is already high due to the tax reform is something we need to pay attention to," Benito Berber, a strategist at Nomura, said in an e-mail. Economists expect inflation to end the year at 4.01 percent, above the 4 percent upper limit of Banco de Mexico's target range, according to a March 6 central bank survey. Poor Quality, Higher Prices -- and Bar Customers Notice Manuel Ambrosio, a bartender at Bloo Bar in Mexico City, says he is reducing portions in the drinks he serves customers to trim his losses after limes rose. Sales of margaritas -- a popular mixed drink of fresh lime juice, tequila and salt -- have plunged 30 percent as customers complain about the poor quality of the fruit that he uses to reduce costs, he says. "These limes have no juice," the 28-year-old said, squeezing a wedge from a pile on his bar. "This is the worst I've seen prices in four years." Since December, the price of limes in Mexico City's main wholesale market has tripled to 32 pesos per kilo through mid-March. Limes, squeezed into a variety of Mexican dishes, hold the largest weighting among fruits in Mexico's inflation basket after apples. In February, lime prices nationwide surged 68 percent from the previous month, contributing 0.08 percentage point to Mexico's consumer price index, which rose 0.25 percent, according to the national statistics institute. The cost of the fruit soared 45 percent in January, pushing consumer prices up another 0.04 percentage point. The Citrus Growers Association of Apatzingan Valley "was formed so that producers can establish the price," Santibanez said in a March 12 interview in the association's offices. "For example, the association says to the distributors, 'we'll put a price of 20 pesos.' They can't go lower than that. The producers will receive 20 pesos at a minimum." Leandro Alcantar, the president of the association, wasn't available for comment. Association members have been able to push up prices after lime infestations from the state of Colima and atypical rainfall in Michoacan crimped production, making Apatzingan the producer of almost all of the fruit consumed in Mexico this year, according to Santibanez. Mexico is considering increasing lime imports to combat their high price, Economy Minister Ildefonso Guajardo said March 14. Policy May Be Illegal, Former Antitrust Commission Believes The policy may be illegal, according to Miguel Flores Bernes, a former antitrust agency commissioner and now a lawyer. "Everything points to an accord among competitors," Flores Bernes said by phone March 13. "If they are competitors, they can't agree on prices, neither a ceiling nor a floor." Santibanez denied the growers were engaging in illegal activity. He said price setting is only occurring in one step along the supply chain -- the producers' sale of limes to packing companies. The final cost to consumers remains fluid, he said. An investigation into price-fixing would only happen if a complaint is filed, Alfredo Castillo, who was appointed by President Enrique Pena Nieto to improve security and economic and social development in Michoacan, said in a March 12 interview. The Federal Economic Competition Commission, the nation's antitrust agency, declined comment. Recent violence in the state as armed vigilantes push drug cartels out of the area is also generating price speculation among producers, according to Castillo. Producers founded the Apatzingan association in 2009 for its 4,500 members in order to stop the practice of packing companies paying below-production costs, Santibanez said. The group's growers cultivate 135,000 across the Tierra Caliente valley and currently pick about 2,000 tons of the fruit per harvest day, which the association's members have limited to three days a week, he said.

Sunday, March 23, 2014

Earnings Are Snowed In

Each Monday, MoneyBeat publishes a short column in the WSJ print edition highlighting a statistic getting traction in the markets. This week's "Big Number" is -195, the number of S&P 500 companies that mentioned the word “weather” on their latest earnings calls.

Economists aren’t the only ones pointing to the brutal winter for poor data. Companies also are playing the blame game, and it has taken a toll on first-quarter profit estimates.

S&P 500 companies mentioned the word “weather” at least once on 195 earnings calls from Jan. 1 through March 12, according to a review of conference-call transcripts published by FactSet. That is an 81% increase from 108 mentions a year ago.

For instance, retailer Urban Outfitters sa(URBN)id 312 stores were closed for either a full or partial day in January due to wintry conditions, up from 13 closings a year ago. “Weather during the month of January in the Midwest and Eastern United States was so extreme that it warrants a discussion,” Urban Outfitters Chief Executive Officer Richard Hayne said last week on an earnings call.

Gap Inc.(GPS), McDonald's Corp.(MCD) and General Motors Co.(GM) were among other companies that cited the weather as a factor in their results and projections. Companies in the energy, consumer-discretionary and industrial sectors mentioned the weather the most on their calls, FactSet data show.

Heavy snow and subzero wind chills have prompted Wall Street analysts to ratchet down their expectations for the first three months of the year.

Analysts polled by FactSet expect first-quarter profit growth to increase 0.3% from a year ago. That is down from the 4.4% analysts projected at the end of 2013.

Poor weather has hit economic reports as well. Disappointing jobs, manufacturing and retail-sales figures have been blamed on the weather.

Earlier this month the Federal Reserve’s “beige book,” which assesses the economy in the Fed’s 12 districts, highlighted the weather’s impact. In that report, the word “weather” appeared 119 times, up from 18 references a year ago.

Think Of Including Honda Motors in Your Portfolio

Honda Motor (HMC) recently released its Q3, 2014 results which were firing all guns. The company was helped by a weak yen to some extent and underperformance in some markets, although revenue increased. Let's see how the results were and what can be expected of Honda in the future.

Performance boost

Owing to favorable foreign currency transformation Honda witnessed a revenue boost and even a rise in unit sales both in automobiles and motor cycle segment. Consolidated net sales increased 16.3% year over year to $22.7 billion, increase by 24% Year over year, but not beat the consensus estimate of 28.95 billion.

Honda witnessed an increase in unit sales in the automobile segment that recorded 900,000 units. Total revenue $22.5 billion fetched from the automobile segments. The company has been unable to benefit from the construction boom in the U.S. as sales of Honda pickups fell were not alarming.

Revenues for the motorcycle segment grew by 30%, recording $3.8 billion. Consolidated unit sales also increased by 13.1% to 2.7 million motorcycles.

Cash flow from the operation also improved in the first 9 months of fisal 2014 recording ¥870.4 billion as against ¥532.6 billion in the first nine months of fiscal 2013. This was mainly due to better sales.

Journey Ahead

The company is optimistic about its performance in the refiscamainder of 2014. Honda projects estimated revenue to increase by 22.5%. It also anticipates an increase in operating income to by 43.2% and net income to step up by 58%. The anticipated growth is based on the fact of Honda's perception of favorable modal index and favorable raw material cost which can influence the bottom line.

Consumers in the U.S. are choosing pickups and SUVs manufactured by the Detroit carmakers such as Ford and General Motors, according to Honda management. The company has been unable to cash in on the trend of growing auto sales in the U.S. The sales drop in Japan is also a matter of concern. But the company expects to benefit from the positive trends in the U.S. by updating its MDX model.

The company is making an effort to cater to the needs of customers and the prevailing market conditions by updating its models and ramping up supply. Revamping the production system, building new plants for increasing production and adopting innovative techniques for upgrading might help Honda to improve capacity and sales during fiscal 2014.

The company is also looking to rescue its sales in Japan and expects better sales in the second half of the year when it releases the Fit compact. Despite the decline in this key market, the company has kept its outlook for the fiscal year intact. Also, the company is looking to increase its deliveries to 6 million units by 2017 has been incurring costs on building the required infrastructure. These efforts should reap benefits in the future but the company will need to offer better models in the lucrative market for pickups in the U.S.

Competitor

Nissan is a Japanese auto manufacturer and another rival of Honda. It is also benefiting from Yen's devaluation. Its sales are gaining strength in the US and its Nissan Leaf is the leading electric vehicle in the nation. Nissan's is also reviving an old brand -- Datsun -- for launch in emerging economies such as India, Indonesia, Russia, South Africa etc. This move should have a positive impact on its sales in the future as the emerging middle class in these markets purchases cars. The first time car buyers in these countries will have an eye on Datsun, since it would ideally suit their budget.

Conclusion

Honda is not among the best automakers but an investor can always consider investing in the company. Considering the fact, that the Board of Honda announced quarterly dividend keeps the interest of the investor covered. The company also expects to make annual dividend of ¥80 per share in fiscal 2014.

Currently 2.00/512345

Rating: 2.0/5 (1 vote)

Voters:
Email FeedsSubscribe via Email RSS FeedsSubscribe RSS Comments Please leave your comment:
More GuruFocus Links
Latest Guru Picks Value Strategies
Warren Buffett Portfolio Ben Graham Net-Net
Real Time Picks Buffett-Munger Screener
Aggregated Portfolio Undervalued Predictable
ETFs, Options Low P/S Companies
Insider Trends 10-Year Financials
52-Week Lows Interactive Charts
Model Portfolios DCF Calculator
RSS Feed Monthly Newsletters
The All-In-One Screener Portfolio Tracking Tool
MORE GURUFOCUS LINKS
Latest Guru Picks Value Strategies
Warren Buffett Portfolio Ben Graham Net-Net
Real Time Picks Buffett-Munger Screener
Aggregated Portfolio Undervalued Predictable
ETFs, Options Low P/S Companies
Insider Trends 10-Year Financials
52-Week Lows Interactive Charts
Model Portfolios DCF Calculator
RSS Feed Monthly Newsletters
The All-In-One Screener Portfolio Tracking Tool
HMC STOCK PRICE CHART 35.01 (1y: -9%) $(function(){var seriesOptions=[],yAxisOptions=[],name='HMC',display='';Highcharts.setOptions({global:{useUTC:true}});var d=new Date();$current_day=d.getDay();if($current_day==5||$current_day==0||$current_day==6){day=4;}else{day=7;} seriesOptions[0]={id:name,animation:false,color:'#4572A7',lineWidth:1,name:name.toUpperCase()+' stock price',threshold:null,data:[[1364187600000,38.55],[1364274000000,38.6],[1364360400000,38.79],[1364446800000,38.26],[1364792400000,36.99],[1364878800000,36.62],[1364965200000,37.2],[1365051600000,39.21],[1365138000000,38.6],[1365397200000,39.19],[1365483600000,38.59],[1365570000000,38.96],[1365656400000,39.97],[1365742800000,39.84],[1366002000000,38.9],[1366088400000,39.47],[1366174800000,39.49],[1366261200000,39.1],[1366347600000,39.66],[1366606800000,39.69],[1366693200000,39.9],[1366779600000,40.04],[1366866000000,40.78],[1366952400000,40.39],[1367211600000,40.71],[1367298000000,39.98],[1367384400000,39.19],[1367470800000,39.63],[1367557200000,40.24],[1367816400000,40.08],[1367902800000,40.38],[1367989200000,40.6],[1368075600000,40.28],[1368162000000,40.39],[1368421200000,40.83],[1368507600000,40.7],[1368594000000,41.35],[1368680400000,40.67],[1368766800000,41.41],[1369026000000,41.76],[1369112400000,41.88],[1369198800000,41.27],[1369285200000,40.24],[1369371600000,39.4],[1369717200000,40.05],[1369803600000,38.89],[1369890000000,38.84],[1369976400000,37.57],[1370235600000,37.51],[1370322000000,37.73],[1370408400000,36.79],[1370494800000,36.76],[1370581200000,37.14],[1370840400000,37.32],[1370926800000,36.81],[1371013200000,36.42],[1371099600000,37.44],[1371186000000,36.28],[1371445200000,36.79],[1371531600000,37.06],[1371618000000,36.83],[1371704400000,35.48],[1371790800000,36.67],[1372050000000,35.44],[1372136400000,35.99],[1372222800000,36.41],[1372309200000,37.04],[1372395600000,37.25],[1372654800000,37.54],[1372741200000,38.03],[1372827600000,37.97],[1373000400000,38.34],[1373259600000,37.72],[1373346000000,38.07],[1373432400000,37.89],[1373518800000,38.47],[1373605200000,38.42],[1373864400000,38.63],[1373950800000,38.07],[1374037200000,38.69],[1374123600000,38.85],[1374210000000,38.96],[1374469200000,39.33],[1374555600000,39.03],[1374642000000,38.83],[1374728400000,38.74],[1374814800000,38.08],[137! 5074000000,37.39],[1375160400000,37.42],[1375246800000,37.14],[1375333200000,36.95],[1375419600000,37.99],[1375678800000,37.8],[1375765200000,38.3],[1375851600000,38.4],[1375938000000,38.15],[1376024400000,38.12],[1376283600000,38.83],[1376370000000,38.96],[1376456400000,38.93],[1376542800000,38.56],[1376629200000,38.68],[1376888400000,38.4],[1376974800000,37.55],[1377061200000,36.98],[1377147600000,37.53],[1377234000000,38],[1377493200000,37.6],[1377579600000,37.2],[1377666000000,37.04],[1377752400000,36.66],[1377838800000,35.94],[1378184400000,36.49],[1378270800000,37.08],[1378357200000,37.77],[1378443600000,38.02],[1378702800000,38.83],[1378789200000,38.95],[1378875600000,38.68],[1378962000000,38.37],[1379048400000,38.5],[1379307600000,38.83],[1379394000000,38.67],[1379480400000,39.8],[1379566800000,39.59],[1379653200000,38.9],[1379912400000,38.92],[1379998800000,38.96],[1380085200000,38.76],[1380171600000,39.19],[1380258000000,38.72],[1380517200000,38.14],[1380603600000,38.22],[1380690000000,38.28],[1380776400000,38.07],[1380862800000,38.37],[1381122000000,37.91],[1381208400000,37.96],[1381294800000,39.07],[1381381200000,40.08],[1381467600000,40.12],[1381726800000,40.16],[1381813200000,39.57],[1381899600000,39.95],[1381986000000,40.39],[1382072400000,40.4],[1382331600000,40.47],[1382418000000,40.54],[1382504400000,39.29],[1382590800000,39.78],[1382677200000,39.65],[1382936400000,39.76],[1383022800000,40.22],[1383109200000,40.13],[1383195600000,39.96],[1383282000000,40.1],[1383544800000,40.07],[1383631200000,39.87],[1383717600000,39.9],[1383804000000,39.11],[1383890400000,39.62],[1384149600000,39.76],[1384236000000,40.07],[1384322400000,40.78],[1384408800000,40.93],[1384495200000,41.17],[1384754400000,41.23],[1384840800000,40.97],[1384927200000,41.19],[1385013600000,42.43],[1385100000000,42.7],[1385359200000,42.61],[1385445600000,42.11],[1385532000000,42.02],[1385704800000,42.36],[1385964000000,41.88],[1386050400000,41.52],[1386136800000,41.41],[1386223200000,41.08],[1386309600000,41.94],[13865688000! 00,41.45]! ,[1386655200000,41.3],[1386741600000,40.74],[1386828000000,40.59],[1386914400000,40.35],[1387173600000,39.97],[1387260000000,39.9],[1387346400000,41.44],[1387432800000,40.65],[1387519200000,41.3],[1387778400000,41.62],[1387864800000,41],[1388037600000,41.11],[1388124000000,41.25],[1388383200000,41.22],[1388469600000,41.35],[1388642400000,40.69],[1388728800000,40.69],[1388988000000,40.8],[1389074400000,40.71],[1389160800000,40.65],[1389247200000,40.73],[1389333600000,40.84],[1389592800000,40.22],[1389679200000,40.09],[1389765600000,39.93],[1389852000000,39.93],[1389938400000,39.76],[1390284000000,39.83],[1390370400000,39.72],[1390456800000,38.94],[1390543200000,38],[1390802400000,38.08],[1390888800000,38.06],[1390975200000,38.24],[1391061600000,38.2],[1391148000000,37.51],[1391407200000,36.44],[1391493600000,35.92],[1391580000000,35.97],[1391666400000,35.9],[1391752800000,36.55],[1392012000000,36.48],[1392098400000,36.7],[1392184800000,37.22],[1392271200000,37.02],[1392357600000,36.75],[1392703200000,37.17],[1392789600000,36.6],[1392876000000,36.16],[1392962400000,36.14],[1393221600000,36.12],[1393308000000,36.24],[1393394400000,36.06],[1393826400000,36.4],[1393912800000,36.93],[1393999200000,36.92],[1394085600000,37.3],[1394172000000,37.12],[1394427600000,36.57],[1394514000000,36.89],[1394600400000,36.56],[1394686800000,35.84],[1394773200000,35.47],[1395032400000,35.9],[1395118800000,35.36],[1395205200000,35.2],[1395291600000,35],[1395378000000,35.01],[1395547030000,35.01],[1395547030000,35.01],[1395414056000,35.01]]};var reporting=$('#reporting');Highcharts.setOptions({lang:{rangeSelectorZoom:""}});var chart=new Highcharts.StockChart({chart:{renderTo:'container_chart',marginRight:20,borderRadius:0,events:{load:function(){var chart=this,axis=chart.xAxis[0],buttons=chart.rangeSelector.buttons;function reset_all_buttons(){$.each(chart.rangeSelector.buttons,function(index,value){value.setState(0);});series=chart.get('HMC');series.remove();} buttons[0].on('click',function(e){chart.showLoading();reset_all_buttons();chart.rangeSelector.buttons[0].setState(2);var extremes=axis.getExtremes();$.getJSON('/modules/chart/price_chart_json.php?symbol=HMC&ser=1d',function(data){if(data!=null){var extremes=axis.getExtremes();axis.setExtremes(data[1][0][0],data[1][data[1].length-1][0]);chart.addSeries({name:'HMC',id:'HMC',color:'#4572A7',data:data[1]});if(data[0][1]>=0){display=data[0][0]+" (1D: +"+data[0][1]+"%)";reporting.html(display);}else{display=data[0][0]+" (1

Saturday, March 22, 2014

3 Tech Stocks on Traders' Radars

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

>>5 Stocks Insiders Love Right Now

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

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

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

>>5 Rocket Stocks Worth Buying This Week

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

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

Frontier Communications


Nearest Resistance: N/A

Nearest Support: $5

Catalyst: Technical Setup

>>5 Stocks Poised for Breakouts

Mid-cap communications stock Frontier Communications (FTR) is up 1.3% on high volume this afternoon, following through to new highs after breaking out above $5 resistance on Monday. That price action makes $5 a new support level for shares, and makes more upside the likely trade for shares.

Making new highs is significant from an investor psychology standpoint because it means that everyone who has bought shares in the last year is sitting on gains. As a result, the "back to even" mentality is less of a concern than it would be for a name with a higher proportion of shareholders sitting on losses. If you decide to be a buyer here, I'd recommend keeping a stop under the lower support level at $4.90.

FTR still pays out a whopping 7.6% dividend yield at current prices.

Oracle


Nearest Resistance: $39.50

Nearest Support: $37.50

Catalyst: Earnings

>>5 Stock Charts Screaming "Buy" in March

Large-cap enterprise software firm Oracle (ORCL) is off 1.2% on high volume this afternoon, following news that the firm missed fourth quarter earnings by 2 cents. Analysts were expecting profits to reach 70 cents per share, but they came in at 68 cents. It's a modest miss, and from a technical standpoint, shares are holding up that it's not a particularly significant one.

In short, the uptrend in Oracle remains intact. Shares are re-testing trend line support at $37.50 this afternoon, but that resembles a buying opportunity more than a cause for concern. The fact that buyers are stepping in at support bodes well for ORCL's upside in the next month.

First Solar


Nearest Resistance: N/A

Nearest Support: $65

Catalyst: Earnings Guidance

First Solar (FSLR) is up more than 13% this afternoon, following the firm's release of guidance for 2014 and beyond. The firm expects revenue to fall between $3.7 and $4 billion this year, besting the consensus estimate that falls at the bottom of that range. Most important, it forecasts impressive numbers for 2015 and 2016 that include much higher levels of profitability than the firm sees today.

FSLR is testing a key breakout to new highs this afternoon as shares press up through previous resistance at $65. That $65 level has acted like a price ceiling in the past, so the fact that First Solar is catching a bid above it bodes well for buyers. If shares can hold $65 through the close, consider FSLR a buy.

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



-- Written by Jonas Elmerraji in Baltimore.


RELATED LINKS:



>>Hedge Funds Are Selling These 5 Stocks -- Should You?



>>5 Big Health Care Stocks to Trade for Gains



>>5 Hated Earnings Stocks You Should Love

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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

Follow Jonas on Twitter @JonasElmerraji


Friday, March 21, 2014

Congress Complains About Drug Prices and Other Small Cap Biotech News (GILD, ECYT, ASTM & TNIB)

At the end of this week, congressional scrutiny was weighting down large cap biotech Gilead Sciences, Inc (NASDAQ: GILD) and dragging down much of the biotech sector, but there was still good news surrounding small cap biotech stocks like Endocyte, Inc (NASDAQ: ECYT), Aastrom Biosciences Inc (NASDAQ: ASTM) and TNI BioTech (OTCMKTS: TNIB) plus there were more biotech IPOs which debuted:

Congress Takes Aim at Gilead Sciences and the High Cost of Drugs. A letter from three Democrats on the House's Energy and Commerce Committee requesting a briefing with Gilead Sciences regarding its Sovaldi Hep C drug that the FDA approved back in February helped to send the stock down 4.57% today. The letter stated:

Our concern is that a treatment will not cure patients if they cannot afford it. Reports indicate that Gilead intends to sell Sovaldi at $84,000 per treatment. In cases where Sovaldi is prescribed with other treatments the costs could be even higher.

The letter ends by asking for a briefing no latter than April 3, 2014. However, the letter alone does not appear to be causing any panic among investors as some have apparently decided to trim some of their biotech positions in the wake of a strong run from the sector. The iShares NASDAQ Biotechnology Index ETF (NASDAQ: IBB) lost 4.74% while the SPDR S&P Biotech ETF (NYSEARCA: XBI) lost 4.18%.

26 Biotech IPOs for This Year and Counting. This week, Akebia Therapeutics, Inc (NASDAQ: AKBA) and MediWound (NASDAQ: MDWD) were the latest small cap IPOs to join the biotech IPO party by bringing in $170 million. Specifically, Akebia Therapeutics, which has AKB-6548 working through a Phase IIb trial in patients with anemia secondary to chronic kidney disease, raised $100 million by selling about 5.9 million shares at a top-of-the-range $17 each while Israel based MediWound raised $70 million at the low end of its range to fund Phase III trials for its topical burn treatment, NexoBrid. FierceBiotech noted that these two biotech IPOs make for 26 successful biotech IPOs in the first quarter alone after bullish investors welcomed nearly 40 life sciences companies onto the public markets in 2013.  

Endocyte, Inc Surges 92.42%. This morning before the market opened, small cap Endocyte and its partner Merck announced that European Union regulators had said its drug Vynfinit should be approved as a treatment for ovarian cancer plus the company said the drug helped slow the progression of lung cancer. Merck and Endocyte had announced a partnership in April 2012 with the former paying the latter $120 million upfront plus ECYT could get more than $1 billion if Vynfinit is successfully developed as a treatment for multiple types of cancer. Moreover, Cowen and Co. analyst Simos Simeonidis said EU regulators should make a final decision on the drug within three months. He expects them to approve Vynfinit and said the drug should be launched a short time later. Endocyte is up 165.5% since the start of the year, up 186.6% over the past year and up 264.4% since February 2011.

Aastrom Biosciences Rises 70%+ in Two Days on No News. Small cap Aastrom Biosciences, which is developing patient-specific, expanded multicellular therapies for use in the treatment of patients with severe, chronic cardiovascular diseases, surged 30.58% today after rising more than 25% on Thursday. There has been no apparent news but trading volume today was 5.39M verses a daily average of 199,704. The most recent news from Aastrom Biosciences was an earnings report late last week – meaning the big moves yesterday and today appear to be technical in nature. Otherwise, it should be noted that Nick Colangelo, the President and CEO of Aastrom Biosciences, will present at the 2014 Regen Med Investor Day on Wednesday, March 26 at 3:15 pm. Aastrom Biosciences is up 97.2% since the start of the year, down 74.6% over the past year and down 7.3% over the past five years.

TNI BioTech Reports a Couple of Pieces of News. Small cap biotech TNI BioTech, which is working to combat chronic, life-threatening diseases through the activation and modulation of the body's immune system using patented immunotherapy, has had a couple of recent announcements. To begin with, TNI BioTech has announced that the US Patent and Trademark Office (USPTO) has granted a key patent for IRT-101 (MENK) for inducing sustained immune response of T-Cells plus the The Brewer Group, Inc., a global investment advisory firm, announced a new strategic partnership with TNIB to provide tailored services including investment banking advisory as well as government, investor relations and marketing support.  Finally, TNI BioTech announced the formation of a new subsidiary called Cytocom, Inc, for the purpose of developing Low Dose Naltrexone (LDN) and Met-enkephalin (MENK). This comes after TNI BioTech spent last year developing a manufacturing and distribution network for sale of LDN into emerging nations and had discussions with the FDA and EMA to begin clinical trials in the United States. 

Top 10 Industries for Retirement Preparedness

Which industries best prepare their workers for retirement? The answer, perhaps ironically, is not financial services. In fact, the finance and insurance industry came in seventh in a ranking by Judy Diamond and Associates.

“By looking at historical trends in plan performance, we saw that there were clear differences in how different industries are preparing their workers for retirement,” said Eric Ryles, managing director of Judy Diamond Associates.

Each of the 20 major industry classifications described by the North American Industrial Classification System was ranked on changes to their average account balances, participation rates, employee and employer contributions, their rates of return and the number of plan red flags over a five-year period. 

The industries were ranked across each metric based on the ratio of plans that saw improvements in performance compared to the number of plans that saw declines. The individual rankings for each metric were then combined into a single, overall score for each industry and the industries were ranked accordingly.

In descending order, here is the first half of the top 10 list and the number of plans analyzed in each to compile this research:

10. Wholesale Trade - 28,549 plans

9. Educational Services – 4,412

8. Public Administration – 301

7. Finance and Insurance – 35,062

6. Arts, Entertainment and Recreation - 6,301

And on the following pages, in descending order, are the top 5 industries for retirement preparedness:

manufacturing plant5. Manufacturing: This group represents everything from food, beverage and tobacco product manufacturing to textiles, apparel, chemical, plastics, metal, machinery, electronics, transportation, furniture and other types of manufacturing; 61,418 401(k) plans were analyzed for this report. Management of companies and enterprises4. Management of Companies and Enterprises: This group comprises companies that hold the securities of, or other equity interests in, companies and enterprises for the purpose of owning a controlling interest or influencing management decisions. It also includes establishments that administer, oversee and manage the strategic or organizational planning and decision making role of the company or enterprise. This group saw the greatest ratio of 401(k) plans with increasing rates of return to plans with decreasing rates of return; 1,760 plans were analyzed for this report.

Agriculture, forestry, fishing and hunting3. Agriculture, Forestry, Fishing and Hunting: Agriculture, Forestry, Fishing and Hunting, as a group, was ranked 19 out of 20 in overall participation rate, but finished third overall because of very high levels of employee and employer contributions, as well as solid plan design; 5,417 plans were analyzed for this report.

Mining2. Mining: This category includes minerals and precious metals mining, as well as oil and gas extraction. Judy Diamond examined 3,073 401(k) plans in this industry.

Utility worker1. Utilities: The Utilities industry took the top spot. It includes companies that provide electric power, natural gas, steam supply, water supply and sewage removal. It also includes companies that provide electric power generation, transmission and distribution; natural gas includes distribution; steam supply includes provision or distribution; water supply includes treatment and distribution; and sewage removal includes collection, treatment and disposal of waste through sewer systems and sewage treatment facilities, according to the Bureau of Labor Statistics; 1,832 401(k) plans in the Utilities industry were analyzed for the report.

 

More Top 10 Lists on ThinkAdvisor:

Thursday, March 20, 2014

Mortgage Rates Turn Downward (Again)

Remember all the dire predictions about what the Federal Reserve's tapering was going to do to the housing market? It seems mortgage rates have gotten a reprieve -- and from a somewhat unlikely source.

Mortgage rates fell throughout January and into early February. However, that is not entirely good news.

Relief for mortgage rates
2013 was the first year in seven in which mortgage rates rose, and 2014 was expected to see more of the same. The economy appeared to be strengthening, and in December the Fed announced it would start cutting back its quantitative easing program. That program had been seen as instrumental in driving mortgage rates down to record levels.

So far though, 2014 has defied expectations. Thirty-year mortgage rates were at 4.53 percent on January 2, but had fallen to 4.23 percent by February 6. This drop comes as a relief to prospective home buyers, but existing home owners also have reason to cheer lower rates: Low mortgage rates create refinance opportunities, and generally support property values.

Does this take the Fed off the hook?
Under different circumstances, the Fed might also welcome lower mortgage rates. Throughout last year, there were continual debates about how the Fed could back off from quantitative easing without sending mortgage rates so high they would choke off the housing rally and dampen economic growth.

Instead, the Fed has now taken two steps toward tapering its monetary stimulus, and rates have fallen rather than risen. Does this get the Fed off the hook for any potential adverse effects of tapering? Not exactly.

After all, starting last May, mortgage rates rose by more than a percentage point in anticipation of Fed tapering, so even with the recent easing of rates, they are still much higher than they were a year ago. Also, current mortgage rates reflect a series of disappointing economic news releases, which is hardly something the Fed could have wished for. After all, the idea of bringing rates down in the first place was to stimulate the economy.

Business as usual for deposit rates
For now, it is fair to say that mortgage rates have abandoned their upward course, and it will take either some more positive economic news or signs of inflation to send them higher again. Though current mortgage rates are higher than they were a year ago, they are still much lower than historical norms.

There has been no such change of course for rates on CDs, savings accounts and money market accounts. These remained unchanged throughout last year, having hit bottom and then appearing dead in the water. As the recent downturn in mortgage rates suggests, the deteriorating economic news of late should only prolong the time deposit rates spend near zero.

In an economic story with so many twists and turns, improved growth may yet revive deposit rates later in the year. For now though, the only way consumers can earn higher rates is by active comparison shopping.

The original article: Mortgage Rates Turn Downward (Again) appeared on MoneyRates.com

1 stock going the right direction in 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Additional mortgage-related articles can be found on MoneyRates.com

How much house can I afford?

Why 15-year mortgage rates makes sense in 2014

When it makes sense to bet the house