This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines include upgrades for both J.C. Penney (NYSE: JCP ) and Electronic Arts (NASDAQ: EA ) . But the news isn't all good, so before we get to those two, let's take a quick look at why...
ValueClick got toggled off
Google's�mini-rival in the market for online ads, ValueClick (NASDAQ: VCLK ) , beat earnings by a couple of cents in yesterday's earnings report. Unfortunately, this good news isn't translating into good grades on Wall Street, as a whole series of analysts cut their ratings on the stock to various flavors of "hold." Stephens and Cantor Fitzgerald, Craig-Hallum and Raymond James -- one and all, the analysts are downgrading ValueClick today -- but why?
Top 5 Dow Dividend Companies To Invest In Right Now: Britton & Koontz Capital Corporation(BKBK)
Britton & Koontz Capital Corporation operates as the holding company for Britton & Koontz Bank, National Association that provides commercial and consumer banking services in Adams and Warren Counties, Mississippi, and East Baton Rouge Parish, Louisiana, as well as in the adjoining counties and parishes in Mississippi and Louisiana. The company offers various deposit products, including personal and commercial checking accounts, money market deposit accounts, savings accounts, non-interest bearing deposits, negotiable order of withdrawal accounts, and certificates of deposit. Its loan portfolio comprises commercial, financial, and agricultural loans; real estate construction, residential, and other loans; installment loans; consumer loans; and overdrafts. In addition, the company provides automated clearinghouse services; safe deposit box facilities; brokerage services; automated teller machines; cash management services, including remote deposit, money transfer, direct de posit payroll, and sweep accounts; VISA credit cards; and letters of credit. As of May 17, 2011, it operated three full service offices in Natchez, two in Vicksburg, Mississippi; three in Baton Rouge, Louisiana; and a loan production office in Central, Louisiana. The company was founded in 1866 and is headquartered in Natchez, Mississippi.
Top 5 Dow Dividend Companies To Invest In Right Now: Investors Title Company(ITIC)
Investors Title Company, through its subsidiaries, provides title insurance to residential, institutional, commercial, and industrial properties. It underwrites land title insurance for owners and mortgagees as a primary insurer; and offers the reinsurance of title insurance risks to other title insurance companies. The company also provides tax-deferred real property exchange services, as well as serves as an exchange accommodation titleholder and holds property for exchangers in reverse exchange transactions; offers investment management and trust services to individuals, companies, banks, and trusts; and provides consulting services to title insurance agencies. Investors Title Company serves various customers in the residential and commercial market sectors of the real estate industry. It issues title insurance policies primarily through approved attorneys from underwriting offices, as well as through independent issuing agents in 24 states and the District of Columbia, the United States. The company was founded in 1972 and is headquartered in Chapel Hill, North Carolina.
Hot Financial Companies For 2014: Analytica Ltd(ALT.AX)
Analytica Limited focuses on the development and commercialization of a range of medical devices and pharmaceutical implants. It is developing Autostart burette, a solution to regular monitoring and refilling of burettes in intravenous fluid infusion; perineometer device to assist women and their clinicians in treatment of stress urinary incontinence; and Naltrexone implant for the treatment of drug and alcohol addictions. Analytica Limited is based in Eight Mile Plains, Australia.
Top 5 Dow Dividend Companies To Invest In Right Now: Caribou Coffee Company Inc.(CBOU)
Caribou Coffee Company, Inc. owns and operates coffeehouses. The company offers premium coffee and espresso-based beverages, as well as specialty teas, handcrafted beverages, foods, coffee lifestyle items, branded merchandise, and related products. It also sells whole bean and ground coffee to grocery stores, mass merchandisers, office coffee providers, airlines, hotels, sports and entertainment venues, college campuses, and online customers. In addition, the company sells blended coffees and licenses its Caribou Coffee brand to Keurig, Inc. for sale and use in its K-Cup single serve line of business. Further, Caribou Coffee Company franchises its brand to partners to operate Caribou Coffee branded kiosks and coffeehouses, as well as sells Caribou Coffee branded products to partners for resale in these franchised locations. As of July 3, 2011, it operated 407 company-owned coffeehouses located in 16 states and the District of Columbia; and 147 franchised coffeehouses in th e United States and international markets. The company was founded in 1992 and is based in Brooklyn Center, Minnesota.
Advisors' Opinion:- [By Toby]
In comparison to Starbucks, Caribou Coffee is but a blip on the radar screen in the coffee shop business. That said, the company is well established in its various markets, and its stores are doing brisk business. Like Starbucks, shares of Caribou are doing very well in 2011. The stock is up 41% year to date.
That impressive performance has been fueled by growth in operating profits. The company has beaten analyst estimates in each of the last 2 quarters and shows no sign of slowing. Wall Street expects profits to grow by an impressive 24% from the current year to 2012.
Shares trade for a premium valuation of 35 times earnings as investors rush to stocks that are working in this environment. Caribou’s future prospects are compelling, so that P/E ratio might not be a sign of disaster. With its core business stabilized, look for the company to go frontal in its competition with Starbucks and grow substantially.
- [By James K. Glassman]
Bridgeway Ultra-Small Company is a superb fund (it has an annualized return of 13.4% over the past ten years) that is closed to new investors. But we can still poach ideas from its portfolio. One of the best is Caribou Coffee (CBOU), a Starbucks competitor (with a better product, in this coffee drinker's opinion) whose sales have held up well. Analysts, on average, forecast that the company, which has nearly 500 stores, will boost its earnings by 30% in 2011. And the company has no debt.
- [By Roberto Pedone]
One stock in the restaurant complex that has started to break out is Caribou Coffee(CBOU_). This company is engaged in operating coffeehouse in the U.S. The stock is off to a hot start in 2011, with shares up by over 35%.
If you look at the chart for Caribou Coffee, you'll notice that this stock was hammered by the sellers from its August high of $17.40 to a recent low of $10.32 a share. Since marking that low, the stock has spiked big and now trades at just over $14 a share. What's even more noteworthy is that now the stock is starting to break out above some past overhead resistance at around $13.50 and above its 50-day moving average of $13.32 a share. This should easily set the stock up to make a run at its next significant r esistance level of $15 a share, or possibly much higher.
If you're bullish on this stock, you could simply get long on off any noticeable weakness. I would place a stop just below $13.50 a share in case this breakout fails. I would add to this position only if the stock takes out $15 a share with heavy volume. Look for volume that's tracking in close to or above its three-month average action of 672,400 shares.
This stock has a decent short interest -- around 6% of the tradable float is currently sold short by the bears. Caribou only has 18.35 million shares in its float, so this breakout could easily spark a massive short squeeze in the coming days or weeks. Keep this name on your trading radar.
Caribou is one of TheStreet Ratings' top-rated restaurant and hotel stocks.
Top 5 Dow Dividend Companies To Invest In Right Now: Ansell Capital Corp (ACP.V)
Ansell Capital Corp. engages in the acquisition, exploration, and development of mineral properties. It primarily explores for gold, silver, copper, and other metals. The company holds interests in the Kuyakuz Mountain project located in British Columbia, Canada; and the Charlotte property located in the Yukon Territory, Canada. It also holds an option agreement to acquire a 100% interest in the Dal, the Discovery Creek, and the Etzel properties located in the Yukon Territory, Canada. Ansell Capital Corp. was incorporated in 2006 and is based in West Vancouver, Canada.
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