Friday, January 31, 2014

Ex-NBA Star Detlef Schrempf: He Shot, He Scored, He Managed (a Fund)

Detlef Schrempf has always been a man on the move.

From the time his family moved to Washington state from his native Germany when he was 17, to college and professional basketball stardom and a new career in the financial and philanthropic worlds, the three-time NBA all-star has never stopped.

As his basketball career was nearing its end, Schrempf, who is now director of business development at Coldstream Capital Management, realized he needed to find something to fill his days.

“I understood I wouldn’t be playing forever,” he said. “I saw some big stars retire and I started to think about what I could do next.”

He also has seen many players make big-time money and still be left with nothing at far too young an age. He expresses understanding for their plight.

“It’s hard to blame them. They are young and have lots of money,” Schrempf said, adding that most players are unprepared to make the right financial decisions.

More players today, he said, might have a better chance to remain in good financial standing.

“I think the money today is so big that I think they have a chance to keep some,” Schrempf said.

Toward the end of his playing days, Schrempf started looking around and didn’t see “a lot of options,” but realized he could find his path through the relationships he had developed over the years. It didn’t hurt that he had earned a degree in international business from the University of Washington.

Armed with that background, Schrempf co-founded Athlon Ventures, a private equity firm, in 2000. Schrempf handled fundraising, deal flow, strategic partnerships and marketing for the fund, which invested in, among other instruments, venture capital and real estate. Athlon is fully invested.

The kind of success Schrempf found at Athlon was a continuation of his on-court triumphs. As a high school senior in Centralia, he led his team to the state championship. During his playing days at the University of Washington, the Huskies won Pac-10 championships in 1984 and 1985. With Schrempf as the team’s leading scorer, the team advances to the NCAA tournament’s Sweet Sixteen in 1984.

Part of a wave of tall players (he’s 6-foot-9) who could handle a ball and shoot like guards, Schrempf’s skills translated to 16 years in the NBA, mostly with the Indiana Pacers and the Seattle SuperSonics.

Originally selected as the eighth pick in the NBA draft, Schrempf lived up to his promise. He was named the league’s top sixth man in 1991 and 1992 while with the Pacers. He was named to those three All-Star Games and played in one NBA finals series with the SuperSonics in 1996. The Sonics fell to Michael Jordan and the Chicago Bulls in six games. After retiring, Schrempf moved on to Athlon. After the fund was fully invested, it was time for a new challenge, so in 2007 he joined Coldstream, a Bellevue, Wash.-based firm founded in 1996. Coldstream provides financial planning and personalized client services to high-net-worth individuals and families, among other services. It has more than $1.1 billion in assets under management.

Hot Insurance Companies To Invest In 2014

Schrempf, 50, is clear about what is behind his success in the financial world.

“It’s mostly about building relationships,” he said. “That’s what I’m most interested in.”

Schrempf built on those relations with his namesake foundation, started two decades ago to help families and children in the Northwest. Mainly through an annual golf tournament, a St. Patrick’s Day Dash and a fashion show it has raised more than $13 million. The foundation has supported more than 100 charities and it partners with Camp Fire USA Central Puget Sound, Seattle Children’s Autism Center, Inspire Youth Project and the Healing Center.

When Schrempf feels the need to get away from his everyday routine, he heads for the wide-open spaces of North Dakota.

“I like to ride horses,” he said. “I go to a friend’s ranch once a year,” even participating in cattle drives.

Perhaps it’s fitting that a man who loves horses and country-western music (he says there are so many great artists, and names Darius Rucker as among his favorites) had a song by the group Band of Horses named for him.

The Seattle band, which before writing the song had no connection to Schrempf other than as basketball fans, has said the title was accidental.

In an interview with Artistdirect.com, the front man Ben Bridwell said the song on its 2007 album “Cease to Begin” took on its working title because of its Seattle themes. When the song was complete, the name stuck.

Bridwell and Schrempf have since corresponded by email and become friends. The musician was quoted as saying “he’s the most famous friend I have.”

Schrempf has started looking ahead to retirement. He is eligible for a lump-sum payout from the NBA pension fund, which he said is seriously underfunded.

As he waits for the information he needs to make the right financial decision about his basketball pension, Schrempf will no doubt keep moving forward.

He said he knows he’s lucky to have his financial house in order but said he worries about other players.

“Most people work 30 years and hopefully have a retirement plan,” he said. “An NBA career is short. The other guys need the pension.”

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Thursday, January 30, 2014

Talking Tech | Are you excited about the new iP…

NEW YORK — The new iPad Air hits stores on Friday, with a revamped iPad Mini to follow later in November. Will consumers be camped out on long lines to be first on their block with the new devices?

Not if our un-scientific sampling of about 30 tourists here in Times Square is any indication. Of the folks we spoke to on a recent late afternoon and evening, only a handful expressed interest in upgrading.

The new Air is a thinner and lighter iPad model, starting at $499, while this year's Mini adds sharper Retina display.

"I've had Apple products since I was this tall, and it's the first time they've come up with something I didn't care about," says Mitch Soileau of New Orleans. "It's thinner, it's smaller, but my original iPad wasn't that heavy to begin with."

"I got an iPad last year," says Emily Song, of San Francisco. "No reason to upgrade to the new one."

5 Best Tech Stocks To Own Right Now

Emily Song of San Francisco is happy with her wifi for the iPad--doesn't feel the need to upgrade to the wireless carriers cellular plans.(Photo: By Eli Blumenthal)

After cracking the screen of his second generation iPad, however, Scott Rome of Chicago is looking forward to the new model. "It has the crisp display….I just want the new one."

Separately, the wireless carriers are encouraging consumers to buy the new iPads from them and commit to a 2 -year cellular service contract to have 24/7 Internet service for the iPad.

AT&T is the most aggressive, offering $100 off the price of an iPad, with a 2-year service contract that ranges from $5 to $50 monthly. On the other side of the spectrum, T-Mobile says it will offer a scant 20! 0 MB of space free, for folks who use T-Mobile wireless services, without a contract. Once the 200 MB is used up, T-Mobile's rate plans start at $5 monthly

Neither deal excites Song, who doesn't see the hassle of signing up. "I have Wi-Fi on my iPad, it's how I use it. Also, you can power Internet from your phone, using a personal hit spot."

Follow Jefferson Graham on Twitter: @jeffersongraham.

Monday, January 27, 2014

Vertex Pharmaceuticals: Filling in the Gap

Shares of Vertex Pharmaceuticals (VRTX) are in free-fall today following yesterday’s earnings-related plunge.

This time its a downgrade that’s driving Vertex’s stock lower as Bernstein analyst Geoffrey Porges and team cut its shares to Marketperform from Outperform. They explain why:

Our downgrade is based on the stock’s strong performance over the last nine months (+65%), the high value now accorded to the future expansion in their cystic fibrosis treatment revenue, our caution about the risks associated with the company’s ongoing phase III trials of Vx809 and Kalydeco, and the decreasing probability of any meaningful revenue from their remaining HCV asset, Vx135. While critics will suggest that our downgrade is a timing and valuation one, it seems unreasonable for us to encourage investors to ride out the stock’s volatility, and uncertainty, for programs and results that we expect to only show their full potential in 2015 or 2016, rather than 2014. We believe the stock is fairly valued in the mid $70′s, given the current stage and uncertainty about Vx809. We expect the stock to offer more upside after the company formally transitions their attention from Vx809 to its successor Vx661, and to the three drug combinations containing an additional corrector compound for the large number of patients with the commonest form of the disease. The recently announced restructuring was largely inevitable and probably falls short of many investors’ hoped-for cuts in expenses.

Vertex had surged 62% back on April 19, when it announced trial results for one of its drugs. Now it looks like it’ll try to “fill in the gap”–or trading in the range missed by a big jump (This article on gap trading is a bit dated, but notes that the bigger the gap, the less likely a stock will continue heading in that direction.)

Vertex has dropped 6.1% to $66.97 today at 2:24 p.m. but it’s fall doesn’t seem to be having an impact on other biotech companies. Incyte (INCY) gained 2% to $39.77, Acorda Therapeutics (ACOR) has gained 0.7% to $30.83 and Regeneron Pharmaceuticals (REGN) has dropped 0.6% to $285.96.

Saturday, January 25, 2014

Top 5 Railroad Companies To Own For 2015

More than 20% of total rail carloads stem from the coal industry. Because of this reliance on coal shipments, CSX (NYSE: CSX  ) and Norfolk Southern (NYSE: NSC  ) each saw revenues from coal shipments drop by double digits in the first quarter of 2013 versus the same quarter last year. This also can't be great news for Warren Buffett's Berkshire Hathaway (NYSE: BRK-A  ) , as it owns BNSF railroads, which holds a 33% market share in coal shipments by rail, according to 2012 data.

These companies cater to the eastern United States, which has seen its coal industry hurt to a much greater degree than miners out west, such as Peabody Energy and its Powder River Basin thermal coal production. Coal from this region is produced further down the cost curve and is competitive with much lower natural gas prices than the Appalachian output.

Because exports are becoming a much bigger part of the domestic coal landscape, CSX has chosen to focus on providing greater access to a variety of export terminals. Peabody Energy is just one company that has deals in place to get its cheaper coal from the Powder River and Illinois basins to India, China, and the EU. For investors looking to capitalize on a rebound in the U.S. coal market, The Motley Fool has authored a special new premium report detailing exactly why Peabody Energy is perhaps most worthy of your consideration. Don't miss out on this invaluable resource -- simply click here now to claim your copy today.

Top 5 Railroad Companies To Own For 2015: Teekay Lng Partners L.P.(TGP)

Teekay LNG Partners L.P. provides marine transportation services for liquefied natural gas, liquefied petroleum gas, and crude oil worldwide. It transports liquid petroleum gases, including propane, butane, and methane; petrochemical gases comprising ethylene, propylene, and butadiene; and ammonia. The company provides its services through a time-charter or bareboat charter contract basis. As of August 16, 2011, it operated a fleet of 21 LNG carriers, including 1 LNG regasification unit; 5 LPG/multigas carriers; and 11 conventional tankers. Teekay GP L.L.C. serves as the general partner of Teekay LNG Partners L.P. The company was founded in 2004 and is headquartered in Hamilton, Bermuda. Teekay LNG Partners L.P. is a subsidiary of Teekay Corporation.

Advisors' Opinion:
  • [By Taylor Muckerman and Joel South]

    Aside from the potential growth in exports from North America, Australia looks to be the largest contributor to the growth of natural gas finding its way into the international trade market. Transportation of natural gas chilled to temperatures as low as -260 degrees Fahrenheit certainly requires a high degree of skilled execution. That's where Teekay LNG Partners (NYSE: TGP  ) enters the picture. With a fleet much younger than the industry average and a distribution over 6%, it could be a great second-degree play on the coming trend.

  • [By Robert Hsu]

    Name Type of Security� Recommendation� Kinder Morgan Energy Partners L.P. (NYSE: KMP) � MLP August 15, 2013� TeeKay LNG Partners L.P.� (NYSE: TGP) � MLP September 16, 2013� PowerShares S&P 500 BuyWrite Portfol ETF� (NYSE Arca: PBP)� Buy-Write ETF September 30, 2013� Madison Covered Call Equity Strtgy Fd (NYSE: MCN)� Buy-Write ETF September 30, 2013� Nuveen Equity Premium Opportunity Fund (NYSE: JSN)� Buy-Write ETF September 30, 2013� BlackRockEnhanced Dividend Achievers Tr (NYSE: BDJ)� Buy-Write ETF September 30, 2013� Vornado Realty Trust � (NYSE: VNO)� Real Estate
    Investment
    Trust September 26, 2013�

    Robert Hsu is the editor of Permanent Wealth Investor and a former hedge fund portfolio manager at Wall Street powerhouse Goldman Sachs. He retired from Goldman at age 31. He since has come out of retirement to establish and preside over his money management firm, Absolute Return Capital Advisors. His retirement experience has given him his current mission: helping investors like you achieve their goal of comfortable retirement through profitable income strategies.

Top 5 Railroad Companies To Own For 2015: Provident New York Bancorp(PBNY)

Provident New York Bancorp operates as the bank holding company for Provident Bank that provides commercial, community business, and retail banking products and services to businesses, individuals, and municipalities in New York and New Jersey. It offers various deposit products, such as savings accounts, NOW accounts, checking accounts, money market accounts, club accounts, certificates of deposit, commercial checking accounts, IRAs, and other qualified plan accounts. The company?s loan portfolio includes commercial real estate, commercial business, and one-to four-family real estate loans; acquisition, development, and construction loans; and consumer loans, including homeowner, home equity lines of credit, new and used automobile loans, and personal unsecured loans, such as fixed-rate installment loans and variable lines of credit. In addition, it provides services, including cash management, sweep accounts, insurance agency, investment advisory, asset and investment m anagement, and Internet banking services. As of September 30, 2011, Provident New York Bancorp operated 30 retail branches and 7 commercial banking centers in the Hudson Valley region. The company was formerly known as Provident Bancorp, Inc. and changed its name to Provident New York Bancorp in June 2005. Provident New York Bancorp was founded in 1888 and is headquartered in Montebello, New York.

Advisors' Opinion:
  • [By Jon C. Ogg]

    The M&T Bank Corp. (NYSE: MTB) and Hudson City Bancorp Inc. (NASDAQ: HCBK) transaction is the only pending deal of 2012 vintage due to various regulatory concerns. MTB currently has 9% short interest outstanding and PACW 15%. Another merger covered is the deal between Provident New York Bancorp (NASDAQ: PBNY) and Sterling Bancorp (NYSE: STL), and the balance are simply too small for us to warrant effort.

Top Small Cap Companies To Invest In Right Now: Lantrovision(s)

Lantrovision (S) Ltd engages in the design, installation, supply, and provision of consultancy services on network integration and structured cabling. It is involved in the design and installation of computer cabling, as well as the trade of related accessories and peripherals; provision of cabling infrastructure services; sale of cabling accessories; and provision of system integration and network infrastructure services, as well as offers installation, maintenance, and support services for structured cabling systems and components. The company also engages in the structure, design, installation, and consultation of network system with computer communication technology. In addition, it manufactures and sells structuralized cable laying system and multimedia technology; trades in computer peripherals, electronic components, and products for various applications, planners, consultants, advisors, and managers in relation to computer services; and supplies data backup and ret rieval systems. Further, the company provides solutions for testing, monitoring, and analyzing enterprise and telecommunication networks; and contracting services for voice, data, and telecommunication. It primarily operates in Singapore, Malaysia, Hong Kong, China, and Korea, as well as in Thailand and the Philippines. The company was founded in 1990 and is based in Singapore.

Advisors' Opinion:
  • [By Dan Radovsky]

    Sprint Nextel (NYSE: S  ) , DISH Network (NASDAQ: DISH  ) , and Verizon (NYSE: VZ  ) have each been making a play for Clearwire (NASDAQ: CLWR  ) -- if not for the whole company, at least for some of its spectrum. This is a far cry from 2011 when it could barely get the time of day from its network partner and majority owner Sprint.

Top 5 Railroad Companies To Own For 2015: Prima Biomed Ltd (PRR.AX)

Prima BioMed Ltd, a biotechnology company, engages in the research and commercialization of licensed medical biotechnology products in Australia. It develops oncology therapies in the field of immunotherapy. The company�s lead product includes CVac, a cancer vaccine for patients in remission, which has completed two human clinical trials. It also manufactures mannosylated fusion protein, a critical component to CVac that contains the antigen necessary for the dendritic cells to illicit an immune response against tumor cells. In addition, the company focuses on developing oral vaccine against human papilloma virus, a virus associated with development of cervical cancer. Prima BioMed Ltd is based in Sydney, Australia.

Top 5 Railroad Companies To Own For 2015: Advocat Inc.(AVCA)

Advocat Inc., together with its subsidiaries, provides long-term care services to nursing home patients. It offers health care, nursing, personal care, and social services to their patients and residents. The company also provides rehabilitation and nutritional support services. As of June 30, 2011, it operated 9 company-owned and 37 leased nursing centers with 5,364 licensed nursing beds in Alabama, Arkansas, Florida, Kentucky, Ohio, Tennessee, Texas, and West Virginia. The company was founded in 1994 and is based in Brentwood, Tennessee.

Top 5 Railroad Companies To Own For 2015: Excellence Investments Ltd (EXCE.TA)

Excellence Investments Ltd is an Israeli company active in the financial sector. The Company offers services to institutional and corporate clients, and high net worth individuals. The Company's services include global and domestic asset management, investment banking and underwriting, foreign exchange trade and advisory services, derivatives trading, brokerage, mutual fund and provident fund management, pension fund management and exchange traded funds (ETF).

Top 5 Railroad Companies To Own For 2015: AvalonBay Communities Inc. (AVB)

AvalonBay Communities, Inc. engages in the development, redevelopment, acquisition, ownership, and operation of multifamily communities in the United States. As of January 31, 2009, the company owned or held a direct or indirect ownership interest in 164 operating apartment communities comprising 45,728 apartment homes in 10 states and the District of Columbia. It also held a direct or indirect ownership interest in 14 communities under construction, as well as held rights to develop an additional 27 communities. The company?s markets are located in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Midwest, the Pacific Northwest, and the Northern and Southern California regions of the United States. AvalonBay Communities has elected to be taxed as a real estate investment trust and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 1978 and is based in Arlington, Virginia.

Advisors' Opinion:
  • [By Sean Williams]

    Everything's peachy for residential REITs!
    However, what terrible news exists for homebuilders could turn into fantastic news for the residential-REIT sector. You see, if lending rates begin to rise because the Fed is paring back its bond purchases, then it will remove the consumer incentive to purchase a home and will drive people back into renting -- which is great news for the big three residential REITS: Equity Residential, AvalonBay Communities (NYSE: AVB  ) , and UDR (NYSE: UDR  ) .

  • [By Sean Williams]

    To get a better idea of how RealPage is doing, it's always best to look at occupancy rates for some of the nation's biggest residential-REITs. In AvalonBay Communities' (NYSE: AVB  ) most recent quarter, the company reported a 5% increase in revenue attributable to a 4.7% boost in prices in established communities, and a 0.3% uptick in occupancy. For Equity Residential (NYSE: EQR  ) it was much of the same, with revenue rising 5.4% in the fourth-quarter as occupancy rates rose 40 basis points to 95.4% from the year-ago period. Finally, Essex Property Trust (NYSE: ESS  ) delivered some of the strongest occupancy results of all, with 96.9% of its units occupied as of the end of January. The point is that with occupancy rates at their lowest levels in more than a decade, these residential REITs are driving growth by boosting prices because of rent scarcity.

Top 5 Railroad Companies To Own For 2015: Educational Development Corporation(EDUC)

Educational Development Corporation operates as a trade publisher of a line of children?s books in the United States. It distributes children?s books published by Usborne Publishing Limited in the United Kingdom. The company offers various books, including Touchy-Feely board books, jigsaw puzzle books, activity and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as science and math titles, and chapter books and novels. It sells books through two divisions, Usborne Books and More, and Publishing. The Usborne Books and More division distributes books through independent consultants, who hold book showings in individual homes; and through book fairs, direct sales, and Internet sales. It also distributes these titles to school and public libraries. The Publishing division markets books to bookstores, toy stores, specialty stores, museums, and other retail outlets. It distributes books through commissioned trade representati ves who call on book, toy, specialty stores, and other retail outlets; and through in-house marketing by telephone to the trade. The company was founded in 1965 and is headquartered in Tulsa, Oklahoma.

Top 5 Railroad Companies To Own For 2015: Siemens Dem(SIE.L)

Siemens Aktiengesellschaft, an electronics and electrical engineering company, operates in the industry, energy, healthcare, and infrastructure and cities sectors worldwide. In the industry sector, the company?s portfolio includes industry automation and drives products and services, and system integration and solutions for plant business. It offers various products, services, and solutions for the efficient use of resources and energy, and for productivity in industry and infrastructure areas. In the energy sector, the company offers products, services, and solutions for the generation and transmission of power; and for the extraction, conversion, and transport of oil and gas. In the healthcare sector, it develops, manufactures, and markets diagnostic and therapeutic systems, devices, and consumables, as well as information technology systems for clinical and administrative purposes. The company also provides technical maintenance, professional, consulting, and financing services in the healthcare sector. In the infrastructure and cities sector, it offers building and mobility solutions and services; and solutions in the area of power distribution, including smart grid applications. In addition, the company is involved in the commercial finance, treasury, financing and investment management, and project and export finance activities. Further, it offers insurance solutions, such as claims management; acts as a broker of company-financed insurances; owns and manages real estate portfolio; and offers services related to real estate development, real estate disposal and asset management, and lease and services management. Additionally, the company has equity investments in telecommunications infrastructure supply and household appliance companies, as well as in a company that provides open communications, network, and security solutions. Siemens Aktiengesellschaft was founded in 1847 and is headquartered in Munich, Germany.

Top 5 Railroad Companies To Own For 2015: Patheon Inc Com Npv Vtg Restric (PTI.TO)

Patheon Inc. provides drug development and manufacturing services to the pharmaceutical, biotechnology, and specialty pharmaceutical companies worldwide. It primarily offers commercial manufacturing outsourcing services and outsourced pharmaceutical development services. The company�s commercial manufacturing outsourcing services include the activities primarily relating to various sterile dosage forms, as well as solid, conventional, and specialized dosage forms. It also develops a range of specialized capabilities in high potency, controlled substances, and sustained release products. Its pharmaceutical development services comprise early development; pre-formulation, formulation, and development of dosage forms; manufacturing of development stage products during the regulatory drug approval process, including the manufacture of pilot batches; scale-up and technology transfer services designed to validate commercial-scale drug manufacturing processes; and development of analytical methods and delivery of analytical services. Patheon Inc. was founded in 1974 and is based in Mississauga, Canada.

Top 5 Railroad Companies To Own For 2015: Bryn Mawr Bank Corporation(BMTC)

Bryn Mawr Bank Corporation operates as the holding company for The Bryn Mawr Trust Company, which provides various commercial and retail banking services. The company accepts demand, time, and savings deposits; and makes commercial, real estate, and consumer loans, as well as other extensions of credit, including leases. It offers wealth management services, such as trust administration and fiduciary, custody, investment management and advisory, employee benefit account and IRA administration, estate settlement, tax, financial planning, and brokerage services. The company also provides casualty, property, and allied insurance, as well as life insurance, annuities, medical insurance, and accident and health insurance for groups and individuals. In addition, it offers title search and abstract services; mortgage services; and equipment leasing services. As of December 31, 2009, the company had nine full service branches and seven life care community offices in Montgomery, De laware, and Chester counties. Bryn Mawr Bank Corporation was founded in 1889 and is headquartered in Bryn Mawr, Pennsylvania.

Top 5 Railroad Companies To Own For 2015: Whiting USA Trust I(WHX)

Whiting USA Trust I is a REIT. The trust was founded in 2007 and is based in Austin, Texas.

Advisors' Opinion:
  • [By Roberto Pedone]

    Another name that's starting to move within range of triggering a big breakout trade is Whiting USA Trust I (WHX). This stock hasn't done much so far in 2013, with shares up just 4.5%.

    If you look at the chart for Whiting USA Trust I, you'll notice that this stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $3.65 to its intraday high of $4.87 a share. During that move, shares of WHX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now spiked shares of WHX back above both its 50-day and 200-day moving averages, which is bullish. Shares of WHX are now quickly moving within range of triggering a big breakout trade.

    Traders should now look for long-biased trades in WHX if it manages to break out above some near-term overhead resistance levels at $4.90 to $5.04 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 321,220 shares. If that breakout triggers soon, then WHX will set up to re-test or possibly take out its next major overhead resistance levels at $6.23 to $8.01 a share.

    Traders can look to buy WHX off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $4.12 a share. One can also buy WHX off strength once it takes out that breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Top 5 Railroad Companies To Own For 2015: Orestone Mining Corp (ORS.V)

Orestone Mining Corp., an exploration stage company, engages in the acquisition, exploration, and development of mineral properties in Canada. It explores for gold and copper metal deposits, as well as silver and zinc. The company's portfolio contains 2 projects covering 570 square kilometers. It principally holds a 100% interest in the Captain project that covers 407.3 square kilometers of mineral rights located in Central British Columbia. The company is headquartered in Vancouver, Canada.

Top 5 Railroad Companies To Own For 2015: USEC Inc (USU)

USEC Inc. (USEC) is a global energy company, is a supplier of low enriched uranium (LEU) for commercial nuclear power plants. The Company operates in two segments: the low enriched uranium (LEU) segment with two components, separative work units (SWU) and uranium, and the contract services segment. The LEU segment is its primary business focus and includes sales of the SWU component of LEU, sales of both SWU and uranium components of LEU, and sales of uranium. The contract services segment includes work performed for Department of Energy (DOE) and its contractors at Portsmouth and Paducah, as well as nuclear energy services and technologies provided by NAC International Inc. (NAC). The Company supply LEU to both domestic and international utilities for use in about 150 nuclear reactors worldwide. The Company enriches uranium at the Paducah gaseous diffusion plant (GDP) that it leases from the United States DOE.

The Company is deploying advanced uranium enrichment technology, known as the American Centrifuge. USEC provide transportation and storage systems for spent nuclear fuel and provide nuclear and energy consulting services. It also performs contract work for DOE and its contractors at the Paducah and Portsmouth sites.

Low Enriched Uranium

The majority of the Company's customers are domestic and international utilities that operate nuclear power plants. During the year ended December 31, 2011, LEU segment�� international sales constituting 23% of revenue. Its agreements with electric utilities are primarily long-term, fixed-commitment contracts under which the Company's customers are obligated to purchase a specified quantity of SWU from the Company or long-term requirements contracts under which its customers are obligated to purchase a percentage of their SWU requirements from the Company.

Contract Services

The Company performs and earns revenue from contracts work through its subsidiary NAC and from contract work for DOE and DOE! contractors at the Paducah GDP and the site of the former Portsmouth GDP in Piketon, Ohio. NAC provides nuclear energy services and technologies, specializing in design, fabrication and implementation of spent nuclear fuel technologies including the high capacity MAGNASTOR system; nuclear materials transportation, and nuclear fuel cycle consulting services.

The Company competes with Urenco, Areva, State Atomic Energy Corporation and GE Hitachi Global Laser Enrichment (GLE).

Advisors' Opinion:
  • [By John Udovich]

    Since the start of the week, small cap nuclear fuel stock USEC Inc (NYSE: USU) more than doubled for investors, something that has not happened for investors in uranium stocks like Uranium Resources, Inc (NASDAQ: URRE), Denison Mines Corp (NYSEMKT: DNN), Ur-Energy Inc. (NYSEMKT: URG) and Uranerz Energy Corp (NYSEMKT: URZ). To recap: USEC Inc closed at the $6 level on Friday, but then it surged to the $15 level on Monday only to open at the $10 level on Tuesday when it ultimately closed at $12.46. So what in the world is going on with USEC Inc and is it time to revisit nuclear fuel and uranium stocks?

  • [By Roberto Pedone]

    Usec (USU) is a global energy company, which is a supplier of low enriched uranium for commercial nuclear power plants. This stock closed up 8.3% at $13.75 in Monday's trading session.

    Monday's Volume: 1.57 million

    Three-Month Average Volume: 651,161

    Volume % Change: 227%

    From a technical perspective, USU bounced sharply higher here right off its 200-day moving average of $11.77 and back above its 50-day moving average of $13.36 with heavy upside volume. This stock has been downtrending badly for the last month, with shares moving lower from its high of $22.73 to its recent low of $12.12. During that move, shares of USU have been making mostly lower highs and lower lows, which is bearish technical price action. That said, the downside volatility might be over in the short-term for USU, since the stock has now started to bounce off key moving averages with volume.

    Traders should now look for long-biased trades in USU as long as it's trending above Monday's low of $12.12 and then once it sustains a move or close above Monday's intraday high of $14.66 with volume that hits near or above 651,161 shares. If we get that move soon, then USU will set up to re-test or possibly take out its next major overhead resistance levels at $17 to $19.

  • [By Paul Ausick]

    Stocks on the Move: Chegg Inc. (NYSE: CHGG) is down 21.8% at $9.77 after the company�� IPO today. USEC Inc. (NYSE: USU) is up 57.2% at $XX after the U.S. left duties in place on imports of French low-enriched uranium. James River Coal Co. (NASDAQ: JRCC) is up 19.5% at $1.41.

Friday, January 24, 2014

How to share streaming media

streaming data 3

Know the limits of sharing members-only streaming media.

(Money Magazine) When it comes to members-only streaming video and music suites, letting friends and family in on the fun can get a little tricky.

Here are your options:

Netflix -- Stream movies and TV shows

How to share. For $8 a month, you can stream to two devices at once, letting you relax in front of the TV while the kids watch upstairs on a tablet. Or pay an extra $4 to add two more devices.

Sharing is intended for families but isn't formally limited to relatives.

Hit the limit? Try to log in from one device too many, and you get a message saying the action is not permitted.

Amazon Prime -- Get free shipping, ebook loans, and streaming video

How to share. Watch up to two videos at once, borrow an ebook a month, and get free two-day shipping for $79 a year. You can share shipping benefits with up to four "household" members -- though Amazon will not disclose how it determines who qualifies.

Hit the limit? If you try to pull up a third free video, you're asked to log out of one of the others first.

Inside YouTube's new LA studio   Inside YouTube's new LA studio

HBO Go -- Watch HBO original programming, plus movies

How to share. So far, HBO has been relatively laissez faire about password sharing. If you subscribe to the channel (rates vary by cable provider), you get one "household" login. The company doesn't specify how many people may share the account.

Hit the limit? Device limits vary by provider. In our test Comcast allowed three; Time Warner Cable, only two, locking us out of a third.

Spotify -- Stream millions of songs on your computer and mobile devices

How to share. The company's free service includes ads, but for $10 a month, you can go commercial-free and use it on mobile devices. The downside: You can play music on only one gadget at a time, so sharing is impractical as well as banned by the company.

Hit the limit? Attempt to play songs from more than one dev! ice per login and the system will stop play on the original device.

Rdio -- Stream some 20 million songs, or cache them for offline listening

How to share. This Spotify competitor allows web streaming for $5 a month, mobile access for another $5. A two-person account is $18; add up to three people for $5 each. Each user on the account gets his own login and set of songs, playlists, and stations.

Hit the limit? Attempt to play songs from more than one device per login and the system will stop play on the original device.

KNOW THE RULES

Tempted to skirt companies' sharing limits? Read this before you try it:

You signed on the virtual line. When you created your account, you agreed to Terms of Use, which typically restrict password sharing. These agreements are legally binding, says intellectual-property attorney Tim Bukher.

Will you get sued? Probably not, says Bukher. But while most companies aren't actively searching for illegal password sharers, they may install tracking software (which you agreed to in the Terms) to monitor your use of the service.

You could be banned. Get caught violating the Terms and a firm may cancel your account or restrict you from using its services -- though there are no data on how often that happens. To top of page

Thursday, January 23, 2014

Top 10 Paper Companies To Buy For 2015

Average industry glide paths “should reasonably meet the typical worker's spending needs in retirement.”

Something of a hedge in confidence for a product that continues to generate controversy, but a report released Thursday from Morningstar details where target-date funds reside in their industry development.

The report, “Target-Date Series Research Paper: 2013 Industry Survey,” finds target-date series have become “established fixtures in defined contribution plans: assets are rising, fees are falling, and performance reflects strong broad market trends.”

It notes more target-date assets are shifting to passively managed investments, as both an underlying holding within a portfolio and as an overall investment approach. While 68% of target-date assets were in actively managed series as of Dec. 31, inflows to passively managed series—those that invest 80% or more in passively managed investments—surpassed flows into actively managed series for the first time for the 2012 calendar year.

Top 10 Paper Companies To Buy For 2015: Boise Inc (BZ)

Boise Inc., incorporated on February 1, 2007, is a manufacturer of packaging and paper products, including corrugated containers and sheets, containerboard, protective packaging products, imaging papers for the office and home, printing and converting papers, label and release papers, newsprint and market pulp. The Company operates in the United States, Europe, Mexico, and Canada. The Company operates in three segments: Packaging, Paper, and Corporate and Other. The Company�� newsprint is sold primarily to newspaper publishers in the southern and southwestern the United States. During the year ended December 31, 2012, approximately 38% of the Company�� uncoated freesheet paper was sold to OfficeMax Incorporated, its customer.

Packaging

In the Packaging segment, the Company manufactures and sells linerboard, containerboard, corrugated containers and sheets, protective packaging products, and newsprint. Linerboard is a paperboard, which when combined with corrugating medium is used in the manufacture of corrugated sheets and containers. Corrugated sheets are containerboard sheets that are sold primarily to converters that produce a variety of corrugated products. Corrugated containers are corrugated sheets that have been fed through converting machines to create containers, which are used in the packaging of fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. Stock boxes are corrugated containers manufactured to pre-set dimensions.

Protective packaging products include multi-material customized packaging solutions, which may utilize kraft paper-based honeycomb corrugated packaging, foamed plastics, and air pocket packing materials Newsprint is a paper commonly used for printing newspapers, other publications, and advertising material. During the year ended December 31, 2012, its Packaging segment produced approximately 613,000 short tons of linerboard, and its Paper segment produced approximately 135,000 short tons! of corrugating medium. It manufactures linerboard and newsprint on two machines at its mill in DeRidder, Louisiana. It also manufactures corrugated containers and sheets and protective packaging products at 26 plants located in North America and Europe.

Paper

In its Paper segment, the Company manufactures and sells three general categories of products: communication-based papers; packaging-based papers, and market pulp. Its communication-based papers include cut-size office papers, and printing and converting papers. Its Packaging-Demand-Driven Papers include Label and release papers, Flexible packaging papers, and Corrugating medium. Printing and converting papers are used by commercial printers or converters to manufacture envelopes, forms, and other commercial paper products.

Its packaging-based papers include label and release papers and corrugating medium. The Label and release papers include label facestocks, as well as release liners. The coated and uncoated papers sold to customers create packaging products for food and nonfood applications. Market pulp is sold to customers in the open market for use in the manufacture of paper products. The Company manufactures its Paper segment products at three mills, all located in the United States.

Corporate and Other

The Company�� Corporate and Other segment includes transportation assets, such as rail cars and trucks, which it uses to transport its products from its manufacturing sites. The Company provides transportation services not only to its own facilities but also, on a limited basis, to third parties. Rail cars and trucks are typically leased.

The Company competes with International Paper Company, Rock-Tenn Company, Georgia-Pacific LLC, Packaging Corporation of America, Longview Fibre Paper, Packaging, Inc, Green Bay Packaging Inc., KapStone Paper, TexCorr, L.P., Resolute Forest Product, SP Newsprint Co. and Domtar Corporation.

Advisors' Opinion:
  • [By David Sterman]

    That was precisely the rationale behind Packaging Corp. of America's (NYSE: PKG) just-announced $2 billion (in cash and assumed debt) acquisition of rival Boise (NYSE: BZ). The deal will create a $6 billion (in sales) behemoth in the cardboard box industry.

Top 10 Paper Companies To Buy For 2015: Vidrala SA (VID)

Vidrala SA is a Spain-based company principally, which is engaged in the glass industry. The Company�� activities include the production, distribution and sale of glass bottles and containers used in the food and beverages industries. The Company conducts its own research and development (R&D) operations. It operates six production plants and 12 melting furnaces located in such countries, as Portugal, France, Belgium and Italy. As of December 31, 2011, the Company owned such subsidiaries as Crisnova Vidrio SA, Inverbeira Sociedad de Promocion de Empresas SA, Gallo Vidro SA, Castellar Vidrio SA, Corsico Vetro SRL, MD Verre SA, Omega Immobiliere et Financiere SA, Investverre SA and CD Verre SA.

Hot Biotech Stocks To Own Right Now: Berry Plastics Group Inc (BERY.N)

Berry Plastics Group, Inc. (Berry), incorporated on November 18, 2005, is a provider of plastic consumer packaging and engineered materials. Berry owns 100% interest of Berry Plastics Corporation. Berry sells its solutions predominantly into end markets, such as food and beverage, healthcare and personal care. The Company operates in three segments: Rigid Packaging, Engineered Materials and Flexible Packaging. As of September 19, 2012, the Company supplied its customers through 82 manufacturing facilities throughout the United States (68 locations) and select international locations (14 locations). In June 2012, the Company acquired 100% interest of Frans Nooren Beheer B.V. and its operating companies (Stopaq). In September 2011, the Company acquired 100% interests of Rexam Closures Kentucky Inc., Rexam Delta Inc., Rexam Closures LLC, Rexam Closure Systems LLC, Rexam de Mexico S. de R.L. de C.V., Rexam Singapore PTE Ltd., Rexam Participacoes Ltda. and Rexam Plasticos do Brasil Ltda. (collectively, Rexam SBC). In August 2011, Berry acquired 100% interest of LINPAC Packaging Filmco, Inc.

Rigid Packaging

The Company�� Rigid Packaging business consists of containers, foodservice items, house wares, closures, over caps, bottles, prescription vials, and tubes. The end uses for these products are consumer-oriented end markets, such as food and beverage, retail mass marketers, healthcare, personal care and household chemical. The Company manufactures a collection of container products. The Company produces 32 ounce or thermoformed polypropylene (PP) drink cups and offers a product line with sizes ranging from 12 to 52 ounces. The Company�� products of house wares market is focused on producing semi-disposable plastic home and party and plastic garden products. The Company produces closures and over caps across several of its product lines, including continuous-thread and child-resistant closures, as well as aerosol over caps. The Company also provides a range of custom closu! ! re solutions including fitments and plugs for medical applications, cups and spouts for liquid laundry detergent, and dropper bulb assemblies for medical and personal care applications.

The Company competes with Airlite, Letica, Polytainers, Silgan, Aptar Group and Reynolds.

Engineered Materials

Berry�� Engineered Materials business primarily consists of pipeline corrosion protection solutions, specialty tapes and adhesives, polyethylene-based film products, and can liners served to a variety of end markets including oil, water and gas infrastructure, industrial and consumer-oriented end markets. The Company produces anti-corrosion products to infrastructure, rehabilitation and pipeline projects throughout the world. Products include heat-shrinkable coatings, single- and multi-layer sleeves, pipeline coating tapes, anode systems for cathodic protection and epoxy coatings. These products are used in oil, gas and water supply and const ruction applications.

Berry is the manufacturer of cloth and foil tape products. Other tape products include range of splicing and laminating tapes, flame-retardant tapes, vinyl-coated and carton sealing tapes, electrical, double-faced cloth, masking, mounting, original equipment manufacturer (OEM) medical and specialty tapes. These products are sold under the National, Nashua and Polyken brands in the United States. The Company manufactures and sells a portfolio of PE-based film products to end users in the retail markets. These products are sold under brands, such as Ruffies and Film-Gard. Its products include drop cloths and retail trash bags. The Company manufactures customized PP-based, woven and sewn containers for the transportation and storage of raw materials, such as seeds, titanium dioxide, clay and resin pellets.

The Company offers range of polyvinyl chloride (PVC) meat film and agricultural film. Berry�� products are used primarily to wrap fresh meats, poultry and produce for supermarket ! app! lica! tions! . In addition, the Company offers a line of boxed products for food service and retail sales. Berry sells trash-can liners and food bags for offices, restaurants, schools, hospitals, hotels, municipalities and manufacturing facilities. The Company also sells products under the Big City, Hospi-Tuff, Plas-Tuff, Rhino-X and Steel-Flex brands. The Company produces both hand and machine-wrap stretch films, which are used by end users to wrap products and packages for storage and shipping. It sells stretch film products to distributors and retail and industrial end users under the MaxTech and PalleTech brands.

The Company competes with AEP, Sigma and 3M.

Flexible Packaging

The Company�� Flexible Packaging business consists of barrier, multilayer film products, as well as finished flexible packages, such as printed bags and pouches. Berry manufactures and sells a range of film products ranging from mono layer to coextruded films having up to nine layers, lamination films sold primarily to flexible packaging converters and used for peelable lid stock, stand-up pouches, pillow pouches and other flexible packaging formats. The Company also manufactures barrier films used for cereal, cookie, cracker and dry mix packages that are sold directly to food manufacturers like Kraft and Pepsico. It also manufactures films for industrial applications ranging from lamination film for carpet padding to films used in solar panel construction.

The Company supplies component and packaging films used for personal care applications. Berry is a converter of printed bags, pouches and roll stock. Its manufacturing base includes integrated extrusion that combines with printing, laminating, bagmaking, Innolok and laser-score converting processes. The Company is a supplier of printed film products for the fresh bakery, tortilla and frozen vegetable markets with brands, such as SteamQuick Film, Freshview bags and Billboard . The Company manufactures specialty coated and lami! nated pr!! oducts fo! r a range of packaging applications. Its products are sold under the MarvelGuard and MarvelSeal brands and are sold to converters who transform them into finished goods.

The Company competes with Printpak, Tredegar and Bemis.

Top 10 Paper Companies To Buy For 2015: Graphic Packaging Holding Co (GPK)

Graphic Packaging Holding Company (GPHC), incorporated on June 21, 2007, is a provider of packaging solutions for a variety of products to food, beverage and other consumer products companies. The Company is also a producer of folding cartons and coated unbleached kraft paperboard, coated-recycled board and multi-wall bags. The Company operates in two business segments: paperboard packaging and flexible packaging. The Company�� customers include beverage, food and other consumer products industries. The Company operates in four geographic areas: the United States/Canada, Central/South America, Europe and Asia Pacific. In December 2011, the Company combined its multi-wall bag and specialty plastics packaging businesses with the kraft paper and multi-wall bag businesses of Delta Natural Kraft, LLC and Mid-America Packaging, LLC (collectively DNK), both wholly owned subsidiaries of Capital Five Investments, LLC (CVI). Under the terms of the transaction, the Company formed a company, Graphic Flexible Packaging, LLC (GFP), in which it owns 87% interest. On April 29, 2011, the Company acquired all of the assets of Sierra Pacific Packaging, Inc. (Sierra), a producer of folding cartons, beverage carriers and corrugated boxes for the consumer packaged goods industry. In January 2013, the Company acquired Contego Packaging Holdings, Ltd.

Paperboard Packaging

The Company supplies paperboard cartons and carriers. The Company provides a range of paperboard packaging solutions for various end-use markets, such as beverage, including beer, soft drinks, energy drinks, water and juices; food, including cereal, desserts, frozen, refrigerated and microwavable foods and pet foods; prepared foods, including snacks, quick-serve foods for restaurants and food service products, and household products, including dishwasher and laundry detergent, healthcare and beauty aids, and tissues and papers. The Company produces paperboard at its mills; prints, cuts and glues (converts) the paperboard into fol! ding cartons at its converting plants; and designs and manufactures packaging machines that package bottles and cans and, to a lesser extent, non-beverage consumer products. The Company also installs its packaging machines at customer plants and provides support, service and performance monitoring of the machines. The Company offers a variety of laminated, coated and printed packaging structures that are produced from its coated unbleached kraft (CUK), coated-recycled board (CRB), kraft paper and uncoated-recycled board (URB), as well as other grades of paperboard that are purchased from third-party suppliers. The Company manufactures corrugated medium and kraft paper for sale in the open market and internal use.

Flexible Packaging

The Company�� flexible packaging segment includes multi-wall bags, plastics, labels, and the Pine Bluff, AR mill. The Company is a supplier of flexible packaging in North America. Its products include multi-wall bags, shingle wrap, plastic bags and film for building materials (such as ready-mix concrete), retort pouches (such as meals ready to go), medical test kits, batch inclusion bags and film. Its end-markets include food and agriculture, building and industrial materials, chemicals, minerals, pet foods, and pharmaceutical products. Approximately 27% of the plastics produced are consumed internally. The Company�� label business focuses on heat transfer labels and lithographic labels. The Company operates label plants, which produce labels for food, beverage, pharmaceutical, automotive, household and industrial products, detergents, and the health and beauty markets.

The Company competes with MeadWestvaco Corporation and Klabin Company.

Top 10 Paper Companies To Buy For 2015: Castle (A.M.)

A. M. Castle & Co., together with its subsidiaries, distributes specialty metals and plastics worldwide. The company operates in two segments, Metals and Plastics. The Metals segment distributes engineered specialty grades and alloys of metals, as well as provides specialized processing services. It offers alloy, aluminum, nickel, stainless steel, carbon, and titanium in various forms, such as plate, sheet, extrusions, round bar, hexagon bar, square and flat bar, tubing, and coil. This segment also performs various specialized fabrications for its customers through pre-qualified subcontractors that thermally process, turn, polish, and straighten alloy and carbon bars. The Plastics segment distributes various plastics in forms that include plate, rod, tube, clear sheet, tape, gaskets, and fittings. The company serves Fortune 500 companies, as well as medium and smaller sized firms in the retail, automotive, marine, office furniture and fixtures, safety products, life scienc es applications, general manufacturing, producer durable equipment, oil and gas, aerospace and defense, heavy industrial equipment, industrial goods, and construction equipment industries. It has operations in the United States, Canada, Mexico, France, the United Kingdom, China, and Singapore. The company was founded in 1890 and is headquartered in Oak Brook, Illinois.

Top 10 Paper Companies To Buy For 2015: Meadwestvaco Corporation (MWV)

MeadWestvaco Corporation (MWV) provides packaging solutions to the healthcare, personal care and beauty, food, beverage, home and garden, tobacco, and commercial print industries worldwide. The company?s Packaging Resources segment produces bleached paperboard, Coated Natural Kraft paperboard, and linerboard. Its Consumer Solutions segment designs and produces multi-pack cartons and packaging systems primarily for the beverage take-home and tobacco market. In addition, it offers a range of converting and consumer packaging solutions, including printed plastic packaging and injection-molded products used for personal care, beauty, and pharmaceutical products; and dispensing and sprayer systems for personal care, beauty, healthcare, fragrance, and home and garden markets. In addition, this segment has a pharmaceutical packaging contract with a mass-merchant, and manufactures equipment that is leased or sold to its beverage and dairy customers to package their products. The c ompany?s Consumer & Office Products segment manufactures, sources, markets, and distributes school and office products, time-management products, and envelopes in North America and Brazil through both retail and commercial channels. Its Specialty Chemicals segment manufactures, markets, and distributes specialty chemicals derived from sawdust and other byproducts of the papermaking process in North America, South America, and Asia. Its products include activated carbon used in emission control systems for automobiles and trucks, as well as for water and food purification applications, and performance chemicals used in printing inks, asphalt paving, adhesives, and lubricants for the agricultural, paper, and petroleum industries. MWV?s Community Development and Land Management segment involves in real estate development, forestry operations, and leasing activities. MeadWestvaco Corporation was founded in 1888 and is based in Glen Allen, Virginia.

Advisors' Opinion:
  • [By Ben Levisohn]

    When you’re stock has been lagging the S&P 500, sometimes drastic action must be followed by even more drastic action. Case in point: MeadWestvaco (MWV), which announced a program of cost cutting on the heels of one announced last year.

Top 10 Paper Companies To Buy For 2015: Berry Plastics Group Inc (BERY)

Berry Plastics Group, Inc. (Berry), incorporated on November 18, 2005, is a provider of plastic consumer packaging and engineered materials. Berry owns 100% interest of Berry Plastics Corporation. Berry sells its solutions predominantly into end markets, such as food and beverage, healthcare and personal care. The Company operates in three segments: Rigid Packaging, Engineered Materials and Flexible Packaging. As of September 19, 2012, the Company supplied its customers through 82 manufacturing facilities throughout the United States (68 locations) and select international locations (14 locations). In June 2012, the Company acquired 100% interest of Frans Nooren Beheer B.V. and its operating companies (Stopaq). In September 2011, the Company acquired 100% interests of Rexam Closures Kentucky Inc., Rexam Delta Inc., Rexam Closures LLC, Rexam Closure Systems LLC, Rexam de Mexico S. de R.L. de C.V., Rexam Singapore PTE Ltd., Rexam Participacoes Ltda. and Rexam Plasticos do Brasil Ltda. (collectively, Rexam SBC). In August 2011, Berry acquired 100% interest of LINPAC Packaging Filmco, Inc.

Rigid Packaging

The Company�� Rigid Packaging business consists of containers, foodservice items, house wares, closures, over caps, bottles, prescription vials, and tubes. The end uses for these products are consumer-oriented end markets, such as food and beverage, retail mass marketers, healthcare, personal care and household chemical. The Company manufactures a collection of container products. The Company produces 32 ounce or thermoformed polypropylene (PP) drink cups and offers a product line with sizes ranging from 12 to 52 ounces. The Company�� products of house wares market is focused on producing semi-disposable plastic home and party and plastic garden products. The Company produces closures and over caps across several of its product lines, including continuous-thread and child-resistant closures, as well as aerosol over caps. The Company also provides a range of custom closure ! solutions including fitments and plugs for medical applications, cups and spouts for liquid laundry detergent, and dropper bulb assemblies for medical and personal care applications.

The Company competes with Airlite, Letica, Polytainers, Silgan, Aptar Group and Reynolds.

Engineered Materials

Berry�� Engineered Materials business primarily consists of pipeline corrosion protection solutions, specialty tapes and adhesives, polyethylene-based film products, and can liners served to a variety of end markets including oil, water and gas infrastructure, industrial and consumer-oriented end markets. The Company produces anti-corrosion products to infrastructure, rehabilitation and pipeline projects throughout the world. Products include heat-shrinkable coatings, single- and multi-layer sleeves, pipeline coating tapes, anode systems for cathodic protection and epoxy coatings. These products are used in oil, gas and water supply and construction applications.

Berry is the manufacturer of cloth and foil tape products. Other tape products include range of splicing and laminating tapes, flame-retardant tapes, vinyl-coated and carton sealing tapes, electrical, double-faced cloth, masking, mounting, original equipment manufacturer (OEM) medical and specialty tapes. These products are sold under the National, Nashua and Polyken brands in the United States. The Company manufactures and sells a portfolio of PE-based film products to end users in the retail markets. These products are sold under brands, such as Ruffies and Film-Gard. Its products include drop cloths and retail trash bags. The Company manufactures customized PP-based, woven and sewn containers for the transportation and storage of raw materials, such as seeds, titanium dioxide, clay and resin pellets.

The Company offers range of polyvinyl chloride (PVC) meat film and agricultural film. Berry�� products are used primarily to wrap fresh meats, poultry and produce for supermarket applic! ations. I! n addition, the Company offers a line of boxed products for food service and retail sales. Berry sells trash-can liners and food bags for offices, restaurants, schools, hospitals, hotels, municipalities and manufacturing facilities. The Company also sells products under the Big City, Hospi-Tuff, Plas-Tuff, Rhino-X and Steel-Flex brands. The Company produces both hand and machine-wrap stretch films, which are used by end users to wrap products and packages for storage and shipping. It sells stretch film products to distributors and retail and industrial end users under the MaxTech and PalleTech brands.

The Company competes with AEP, Sigma and 3M.

Flexible Packaging

The Company�� Flexible Packaging business consists of barrier, multilayer film products, as well as finished flexible packages, such as printed bags and pouches. Berry manufactures and sells a range of film products ranging from mono layer to coextruded films having up to nine layers, lamination films sold primarily to flexible packaging converters and used for peelable lid stock, stand-up pouches, pillow pouches and other flexible packaging formats. The Company also manufactures barrier films used for cereal, cookie, cracker and dry mix packages that are sold directly to food manufacturers like Kraft and Pepsico. It also manufactures films for industrial applications ranging from lamination film for carpet padding to films used in solar panel construction.

The Company supplies component and packaging films used for personal care applications. Berry is a converter of printed bags, pouches and roll stock. Its manufacturing base includes integrated extrusion that combines with printing, laminating, bagmaking, Innolok and laser-score converting processes. The Company is a supplier of printed film products for the fresh bakery, tortilla and frozen vegetable markets with brands, such as SteamQuick Film, Freshview bags and Billboard. The Company manufactures specialty coated and laminated produ! cts for a! range of packaging applications. Its products are sold under the MarvelGuard and MarvelSeal brands and are sold to converters who transform them into finished goods.

The Company competes with Printpak, Tredegar and Bemis.

Advisors' Opinion:
  • [By John Udovich]

    One of the most famous scenes in the cult classic, the Graduate, was when Mr. McGuire�took Dustin Hoffman�� character aside and said�"Ben, I want to say one word to you, just one word: Plastics"; but what about the Berry Plastics Group Inc (NYSE: BERY) and its performance verses that of the�iShares S&P 500 Index ETF (NYSEARCA: IVV), iShares Russell Midcap Index Fund ETF (NYSEARCA: IWR) and iShares S&P SmallCap 600 Index ETF (NYSEARCA: IJR)? I should mention that plastics and the Berry Plastics Group was not the place to be yesterday as the stock took a tumble on reduced guidance.

Top 10 Paper Companies To Buy For 2015: Weyerhaeuser Company(WY)

Weyerhaeuser Company, a forest products company, grows and harvests trees, builds homes, and manufactures forest products worldwide. It grows and harvests trees for use as lumber, other wood and building products, and pulp and paper. The company manages 6.4 million acres of private commercial forestland; and has long-term licenses on 13.9 million acres of forestland. It also offers timber; minerals, such as rock, sand, and gravel, as well as oil and gas to construction and energy markets; logs; timberland tracts; and seed and seedlings, poles, plywood, and hardwood lumber products. In addition, the company provides structural lumber products for structural framing; engineered lumber products for floor and roof joists, and headers and beams; structural panels for structural sheathing, subflooring, and stair treading for wood products dealers, do-it-yourself retailers, builders, and industrial users. Further, it offers building products comprising cedar, decking, siding, ins ulation, rebar, and engineered lumber connectors. Additionally, the company offers fluff pulp for use in sanitary disposable products; papergrade pulp for printing and writing papers, and tissues; specialty chemical cellulose pulp for use in textiles, absorbent products, specialty packaging, and high-bulking fibers; liquid packaging board converted into containers; and slush and wet lap pulp for manufacturing paper products. It also constructs single-family houses, as well as develops residential lots and land for construction and sale; and master-planned communities with mixed-use property. The company sells its cellulose fibers products through direct sales network, and liquid packaging products directly to carton and food product packaging converters; and wood products through sales organizations and distribution facilities. Weyerhaeuser Company has been elected to be taxed as a real estate investment trust. The company was founded in 1900 and is headquartered in Federal Way, Washington.

Advisors' Opinion:
  • [By Blake Bos]

    Additionally, Blake shares some key factors to be managed that will impact earnings for lumber suppliers such as Weyerhaeuser (NYSE: WY  ) moving forward.

Top 10 Paper Companies To Buy For 2015: Fibria Celulose SA (FBR)

Fibria Celulose S.A. (Fibria), formerly Votorantim Celulose e Papel S.A., incorporated on July 25, 1941, is a producer of market pulp. During the year ended December 31, 2010, Fibria produced 5,054 kilotons of eucalyptus pulp (including 50.0% of the pulp production of Veracel). The Company also produces coated and uncoated paper, carbonless paper and thermal paper at its Piracicaba paper mill, located in the State of Sao Paulo with an annual production capacity of 190 kilotons. During 2010, it produced 115 kilotons of paper products and recorded consolidated net revenues. Fibria produces bleached eucalyptus kraft pulp at three pulp mills, the Aracruz pulp mill located in the State of Espirito Santo, which has an annual production capacity of 2.3 million tons; the Tres Lagoas pulp mill located in the State of Mato Grosso do Sul, which has an annual production capacity of 1.3 million tons, and the Jacarei pulp mill located in the State of Sao Paulo, which has an annual production capacity of 1.1 million tons. The Company has a 50% interest in Veracel, which owns and operates a pulp mill in the municipality of Eunapolis, State of Bahia, with an annual production capacity of 1.1 million tons.

Pulp

Fibria produces bleached eucalyptus kraft pulp from planted eucalyptus trees. Bleached eucalyptus kraft pulp is a range of hardwood pulp. Eucalyptus is a hardwood tree, and its pulp has short fibers and is generally suited to manufacturing tissue, coated and uncoated printing and writing paper and coated packaging boards. Short fibers are optimal for manufacturing wood-free paper with good printability, smoothness, brightness and uniformity. Market pulp is the pulp sold to producers of paper products. Kraft pulp is pulp produced in a chemical process using sulphate. During 2010, it produced 5,054 kilotons of pulp (including 50.0% of the pulp production of Veracel).

Paper

During 2010, Fibria produced 115 kilotons of paper. The Company produced coated printing an! d writing paper, which is a coated woodfree paper used for promotional materials, folders, internal sheets and cover of magazines, books, tabloids, inserts and mailing; uncoated printing and writing paper, which is a uncoated woodfree paper in reels and sheets; carbonless paper, which is used to produce multi-copy forms, POS, invoices and other applications in place of traditional carbon paper, and thermal paper, which is traditionally used in fax machines; POS, bar code labels, toll tickets, water and gas bills and receipts for automated teller machines (ATMs) and credit card machines. It manufactures thermal paper products with technology licensed byOji Paper Co., Ltd (Oji Paper).

The Company competes with APRIL, Arauco, APP, Georgia Pacific, CMPC, Sodra, Stora Enso, Weyerhaeuser and Suzano.

Advisors' Opinion:
  • [By Seth Jayson]

    Fibria Celulose (NYSE: FBR  ) reported earnings on July 24. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended June 30 (Q2), Fibria Celulose met expectations on revenues and missed expectations on earnings per share.

Top 10 Paper Companies To Buy For 2015: Weatherford International Ltd(WFT)

Weatherford International Ltd. provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. It offers artificial lift systems, which include reciprocating rod lift systems, progressing cavity pumps, gas lift systems, hydraulic lift systems, plunger lift systems, hybrid lift systems, wellhead systems, and multiphase metering systems. The company also provides drilling services, including directional drilling, ?Secure Drilling? services, well testing, drilling-with-casing and drilling-with-liner systems, and surface logging systems; and well construction services, such as tubular running services, cementing products, liner systems, swellable products, solid tubular expandable technologies, and inflatable products and accessories. In addition, it designs and manufactures drilling jars, underreamers, rotating control devices, and other pressure-control equipment used in drilling oil and nat ural gas wells; and offers a selection of in-house or third-party manufactured equipment for the drilling, completion, and work over of oil and natural gas wells for operators and drilling contractors, as well as a line of completion tools and sand screens. Further, the company provides wireline and evaluation services; and re-entry, fishing, and thru-tubing services, as well as well abandonment and wellbore cleaning services; stimulation and chemicals, including fracturing and coiled tubing technologies, cement services, chemical systems, and drilling fluids; integrated drilling services; and pipeline and specialty services. It serves independent oil and natural gas producing companies. The company was founded in 1972 and is headquartered in Geneva, Switzerland.

Advisors' Opinion:
  • [By Rich Bieglmeier]

    And that belongs to William Macaulay who is a director at Weatherford International, Ltd. (WFT). The director bought 78,000 shares of WFT on September 27, 2013 for a total of $1.19 million. Mr. Macaulay's recent purchase is particularly peculiar.

  • [By Traders Reserve]

    Despite the poor operating performance, things are looking up for Weatherford (WFT) ��that�� why the selling at the start of the year is so perplexing and likely to attract a private equity or hedge fund manager. Analysts expect profits to grow by 58% next year. At current prices, the stock trades for only 11.5 times 2014 estimated earnings. That�� about as cheap as it gets. An astute big boy manager is going to exploit that valuation metric in very short order. I�� get in before they do.

Top 10 Paper Companies To Buy For 2015: Cornerstone Progressive Return Fund(CFP)

Cornerstone Progressive Return Fund is a closed-ended equity fund of fund launched and managed by Cornerstone Advisors, Inc. The fund invests funds investing in the public equity markets of the United States. It invests in stocks of companies operating across diversified sectors. Cornerstone Progressive Return Fund was formed on April 26, 2007 and is domiciled in the United States.

Advisors' Opinion:
  • [By Dan Caplinger]

    But you can see in several places the consequences of the stampede toward high yield. Here are just a few:

    Closed-end funds Cornerstone Progressive (NYSEMKT: CFP  ) and Pimco High Income (NYSE: PHK  ) both make fixed payments back to fund shareholders on a monthly basis, and their distribution yields are truly extraordinary, at about 17% and 12%, respectively. Those dividends have enticed shareholders to pay $1.30 to $1.40 or more for each $1 of assets in the funds. Yet during most months, a substantial portion of those distribution payments has simply been a return of investor capital rather than true income from the funds' investments. A recent study discussed in The Wall Street Journal found that returns on a portfolio with a combined value and dividend-income strategy outperformed a strategy focused more exclusively on maximizing dividends by an average of 1.7 percentage points per year, a huge edge in long-run returns. In the dividend ETF arena, most funds tend to focus on maximizing yield. Although the popular Vanguard Dividend Appreciation (NYSEMKT: VIG  ) ETF bucks the trend by screening first for consistent dividend growth and only then looking at yield as a factor, many rival ETFs start with high-yielding stocks as their baseline and only then consider other desirable traits. Others focus solely on high-dividend niches of the market, such as iShares FTSE NAREIT Mortgage-Plus (NYSEMKT: REM  ) and its concentration on high-yield mortgage REITs.

    When dividend stocks get too popular, their prices get out of line with both their dividend income and the fundamentals of the businesses that underlie those stocks. In simpler terms, when dividend stocks become bad values, it's time to consider looking elsewhere for a margin of safety.

Top 10 Paper Companies To Buy For 2015: CenturyLink Inc.(CTL)

CenturyLink, Inc., together with its subsidiaries, operates as an integrated communications company. The company provides a range of communications services, including voice, Internet, data, and video services in the continental United States. Its services include local exchange and long distance voice telephone services, as well as enhanced voice services, such as call forwarding, caller identification, conference calling, voicemail, selective call ringing, and call waiting; wholesale local network access services; and data services, including high-speed Internet access services, data transmission services over special circuits and private lines, and switched digital television services, as well as special access and private line services. The company also offers fiber transport, competitive local exchange carrier, security monitoring, and other communications, as well as professional and business information services. In addition, it provides other related services, such as leasing, selling, installing, and maintaining customer premise telecommunications equipment and wiring; payphone services; and network database services, as well as participates in the publication of local telephone directories. Further, the company offers printing, direct mail services, and cable television services; and wireless broadband Internet access services and satellite television services. As of December 31, 2010, it operated approximately 6.5 million telephone access lines. CenturyLink, Inc was founded in 1968 and is based in Monroe, Louisiana.

Advisors' Opinion:
  • [By Lauren Pollock]

    CenturyLink Inc.(CTL) swung to a steep third-quarter loss as the telecommunications company recorded a $1.1 billion impairment charge tied to its data-hosting segment, while revenue fell for the fifth consecutive quarter. Shares declined 2.6% to $33 premarket.

  • [By Selena Maranjian]

    Telecom company CenturyLink (NYSE: CTL  ) shed 4%, and recently yielded 6.1% (which reflects a dividend cut of about 25% as the company focuses more on share buybacks). The company landed a hefty Pentagon contract in April, with a possible 10-year value of $750 million, and has been moving into promising arenas such as cloud computing (via its purchase of SAVVIS). The company has substantial debt, though, topping $19 billion, but also significant free cash flow, near $3 billion�annually. Its EPS has been rising �in the past few years, but revenue growth is mixed.

  • [By Anders Bylund]

    So even after all the hacking and slashing, France Telecom's yield is orders of magnitude richer than American contemporaries AT&T (NYSE: T  ) and Verizon (NYSE: VZ  ) . It's fully comparable to the high-yield payouts of rural American telecoms such as CenturyLink (NYSE: CTL  ) and Windstream (NASDAQ: WIN  ) , but with the added bonus of growth plans in emerging markets. The French stock strikes a unique balance between generous yields, large-scale operations, and vibrant growth plans.

  • [By Mike Deane]

    CenturyLink, Inc. (CTL) announced its third quarter earnings after the bell on Wednesday, with core revenues tumbling 1% from last year’s Q3 figure.

    CTL Earnings In Brief

    -The company announced operating revenues of $4.52 billion, which was slightly above the analyst consensus of $4.51 billion.
    -The company’s adjusted earnings came in at $375 million, or 63 cents per share; this is in line with analysts’ EPS estimates.
    -CTL gave EPS guidance for the fourth quarter of 55 cents to 60 cents, which is below the 63 cents that analysts are expecting.
    -Q4 guidance for revenue is in the range of $4.5 billion to $4.55 billion, which is in line with analysts’ views.

    CEO Commentary

    Glen F. Post III, the CEO and president of CenturyLink, had the following to say about the company’s quarterly results:

    “Overall, we continue to perform well with particular strength in our Business segment where sustained demand for high-bandwidth services and solid sales momentum continue to drive strong results.�Despite this overall solid operating performance in the third quarter, there was a special item which significantly impacted our�financial results�for the quarter. We were required, under GAAP, to recognize a non-cash $1.1 billion impairment to the goodwill assigned to our Data Hosting segment. While we continue to be optimistic and encouraged about the future growth potential and value of our Data Hosting business, we are not currently achieving the forecasted growth and cash flows we originally projected.�As part of our accounting valuation process, past performance was a factor in the development of growth projections for our Data Hosting business in future periods.”

    No Mention of Dividend�

    CTL did not mention its dividend in the quarterly report, and last paid a dividend on September 19. Look for CTL to declare a dividend in mid-November. The company’s last dividend mov

Tuesday, January 21, 2014

Toyota and GM Chevy Recalls Total Over 650,000

Recalls are part of the car industry and generally are accepted by the public — unless perhaps they come in blocks of many hundreds of thousands at a time. Eventually brands are seen as having quality problems, and some portion of the auto-buying public gets skittish. It is not the sort of thing the industry needs as it goes into the critical autumn sales period, and when analysts grow concerned that with the aging of baby boomers, the pool of potential auto owners is dropping by the day. Two car companies known for quality have recalled more than 650,000 vehicles between them in just a few weeks.

The new Toyota Motor Corp. (NYSE: TM) recall includes 369,000 vehicles. About 200,000 are hybrid SUVs, including the high-end Lexus RX400h. Lexus often tops the lists of highest quality cars rated by research firms. The other large recall of cars are some more made by Toyota and affect its  luxury brand — 169,000 Lexus GS350 and IS350 vehicles, due to engine assembly issues.

Two weeks ago, General Motors Co. (NYSE: GM) recalled nearly 293,000 Chevrolet Cruze models. In these, the power-assisted brakes can fail, which ought to make owners particularly nervous.

The irony of the recalls is that both nameplates are very highly rated in the new J.D. Power Initial Quality Study. Lexus is in third place and Chevy in fifth. Each rates well above the industry average and much better than Mercedes-Benz, BMW and Audi, the top-selling luxury imports.

The recalls cannot touch some of the largest ones in the recent past. Toyota’s recall of 8.1 million of its vehicles in early 2010 caused a formal investigation by the National Highway Traffic Safety Administration. Toyota CEO Akio Toyoda was hauled before Congress and ripped by several members who blamed the Japanese company for making dangerous cars that could kill or maim Americans.

Each time a driver has to take his or her car to a dealer and wait for a faulty part or assembly to be fixed, that brand’s quality perception is eroded. In a world with dozens of competitors, recalls are not something any of these companies can afford.

Saturday, January 18, 2014

The 10 Most Popular Stocks Owned By Congress

The truth will make you sick. Technically it's public knowledge, but I can tell you -- it's Congress' dirty little secret.

Congress is rich. Unbelievably rich. And until just recently, insider trading laws didn't apply to Congress.

I don't know which is worse: The fact that insider trading was legal for some of our nation's wealthiest politicians... or that Congress refused to do anything about it for decades.

"A few lawmakers proposed a bill that would prevent members and employees of Congress from trading securities based on nonpublic information they obtain. The legislation has languished since 2006," according to The Wall Street Journal.

 

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That was, the legislation languished until "60 Minutes" -- one of the most respected investigative journalism programs on television -- dedicated a segment to the issue. Here's a portion of what they had to say...

"In mid-September 2008, with the Dow Jones Industrial Average still above 10,000, Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke were holding closed-door briefings with congressional leaders and privately warning them that a global financial meltdown could occur within a few days. One of those attending was Alabama Rep. Spencer Bachus, then the ranking Republican member on the House Financial Services Committee and now its chairman.

"While Congressman Bachus was publicly trying to keep the economy from cratering, he was privately betting that it would, buying option funds that would go up in value if the market went down. He would make a variety of trades and profited at a time when most Americans were losing their shirts."

And that was just one example. Also dug up by "60 Minutes":

House Minority Leader Nancy Pelosi, D-Calif., and her husband have participated in multiple exclusive IPOs -- including that of Visa (NYSE: V). According to one report, Pelosi purchased 5,000 shares of Visa at the IPO price of $44. Just a couple of days later, when the stock was trading to the investing public, it traded at $64 per share.

House Majority Leader John Boehner, R-Ohio, bought stocks in health care companies days before the so-called public option was pulled from the legislation. The removal of the public option proved to be a boon for private health insurers, making a significant sum for Boehner's investments.

The report from "60 Mi! nutes" led to a frenzy. And a few months after the story aired, the STOCK Act, which curbed insider trading by Congress, was signed into law.

But why was it delayed for so long?

Apparently Congress was making too much money off the lax rules to do anything about it.

According to data from the Center for Responsive Politics, 249 of the 535 members of Congress are millionaires. That's 47%. For comparison, about 5% of American households are worth more than $1 million.

So much for representation "by the people." And why on earth would Congress change rules that have obviously helped its members for decades?

Thankfully, the STOCK Act strengthened financial reporting requirements for members of Congress (along with some of their higher-paid aides). Not only did it eliminate insider trading, but Congress must now disclose their trades within 45 days after they happen.

That means we have an opportunity to see exactly what our "representatives" are buying. And we need to know...

In a study cited by Barron's, members of the House of Representatives beat investors like you and me by 55 basis points a month. That comes out to an extra 6.8% per year. I think Barron's said it best...

"To give an indication of what House members' outperformance is worth, investing at the stock market's long-term total return of 10% would mean $10,000 would grow to $25,937 in 10 years. But with their special investment acumen, their 16.8% annual returns would leave them with $47,253 in 10 years."

With that in mind, I decided to dive in and see just exactly what the most popular investments are with Congress...

The 10 Most Popular Stocks In Congress
I'll be honest -- the most popular stocks held by Congress aren't some super-secret investments. They aren't exclusive investments owned only by those in Congress with some inside knowledge of a future breakthrough.

Instead, they're large multinational corporations that make up the bulk of many average investors' portfolios.

I won't keep you in suspense...

1. General Electric (NYSE: GE) -- 83 members

2. Proctor & Gamble (NYSE: PG) -- 68 members

3. Microsoft (Nasdaq: MSFT) -- 64 members

3. Bank of America (NYSE: BOA) -- 64 members

5. Exxon Mobil (NYSE: XOM) -- 56 members

6. JPMorgan Chase (NYSE: JPM) -- 53 members

7. Cisco Systems (Nasdaq: CSCO) -- 52 members

7. AT&T (NYSE: T) -- 52 members

9. Intel (Nasdaq: INTC) -- 51 members

9. Pfizer (NYSE: PFE) -- 51 members

This data is provided by the Center for Responsive Politics. The most recent year available was 2011, before the STOCK Act passed.

As I said, Barron's cited a study that suggests members of Congress post returns much better than average investors.

If their most popular holdings are similar to what many investors own, how is it that members of Congress can earn such higher returns?

No one can say for sure, but my research is turning up a few clues.

If you check out the 10 most popular stocks owned by members of Congress five years ago, eight of them are on the list today. And the two not on the list are in the top 25 today. So is it that members of Congress are just holding on to stocks longer?

That's what I think, but let me explain why...

In 1940, the average holding period for an investment was seven years, according to William Hutchings of the Financial News. By 2007, that period had shrunk to just five days.

But you don't have to trade every day... or every week... or even every year to beat the market. In fact, your success actually in! creases the fewer trades you make and the longer you hold.

A recent study by mega-investment firm Oppenheimer showed that the S&P 500 index has NEVER suffered a loss in a 20-year period (measured in rolling monthly periods), dating all the way back to 1950.

Of course, we all know you can't say the same for holding stocks for a year or two. When you hold stocks for a short period of time, your odds of losing money are much, much higher.

And you can lose a boatload of money in a hurry...

In fact, in its worst one-year period, the S&P 500 dropped 44.8%. No wonder Warren Buffett has always said his favorite holding period is "forever."

I think these shorter holding periods for average investors are hurting their returns.

So yes, it appears members of Congress are buying many of the same well-known stocks as everyday investors, who are now holding for shorter periods than ever and hurting returns.

It was with this thought in mind a few months ago that prompted me to have StreetAuthority's research team update our report on "Forever Stocks." These stocks are ones you can buy and hold practically "forever" and watch the profits roll in. Since first releasing this report, these 10 stocks have returned on average 40% in just a few short years.

If you're a longtime StreetAuthority reader, you've likely heard us talk about some of these stocks before. In fact, a few of the names (like Cisco and Intel) are widely owned by members of Congress and are featured in the list above.

But what you might be surprised to know is that some of our "Forever Stocks" are ones that few people are aware even exist. If you're interested in finding out more about my list of "Forever Stocks" and how you can spot other stocks that should be added to the list, I invite you to check out this short presentation.

Tuesday, January 14, 2014

Albemarle JV Starts up TEA Facility - Analyst Blog

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Specialty chemicals company Albemarle Corporation (ALB) said that its joint venture, Saudi Organometallic Chemicals Company (SOCC), has commenced initial production at its tri-ethyl aluminum (TEA) facility in Al-Jubail, Saudi Arabia. SOCC is equally owned by Albemarle Netherlands B.V., a unit of Albemarle, and Saudi Specialty Chemical Company, an affiliate of leading petrochemical company Saudi Basic Industries Corporation (SABIC). At capacity, the state-of-the-art aluminum alkyls facility will produce 6,000 metric tons per year of TEA, used as a co-catalyst in the plastics industry. The plant will also make ultra-low hydride grade of TEA (ULH-TEA). The facility is geared to address the growing needs for TEA and ULH-TEA in the Middle East, leveraging raw materials supplied from member nations of the Gulf Cooperation Council. The first batch of TEA, which was successfully completed in mid-April 2013, met or surpassed all commercial specifications. Full commercial production is slated to commence in third-quarter 2013 following the competition of customer qualifications. Baton Rouge, La.-based Albemarle is a premier global developer, producer, and marketer of highly-engineered specialty chemicals for consumer electronics, petroleum refining, utilities, packaging, construction, automotive/transportation, pharmaceuticals, crop protection, food-safety and custom chemistry services. The company operates with more than 4,000 employees and serves customers around 100 countries. Albemarle's first-quarter 2013 results, released in Apr 2013, were disappointing as both revenues and adjusted earnings missed Zacks Consensus Estimates. Its adjusted earnings for the quarter were 93 cents per share, trailing the Zacks Consensus Estimate of $1.00. Profit, as reported, tumbled roughly 27% year over year to $84 million or 94 cents per share. Revenues fell roughly 10% year over year t! o $641.6 million in the quarter, missing the Zacks Consensus Estimate of $674 million. The results were hurt by Albemarle's exit from the phosphorus flame retardants business, lower metals surcharges and pricing on some products. Albemarle, which currently holds a Zacks Rank #3 (Hold), will release its second quarter results on Jul 17. Other companies in the chemical industry with favorable Zacks Rank are Cytec Industries Inc. (CYT), Olin Corp. (OLN) and PPG Industries Inc. (PPG). While both Cytec and Olin retains a Zacks Rank #1 (Strong Buy), PPG holds a Zacks Rank #2 (Buy).

Monday, January 13, 2014

Will Lululemon Perform With A New CEO?

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With shares of Lululemon (NASDAQ:LULU) trading around $64, is LULU an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Lululemon designs, manufactures, and distributes athletic apparel and accessories for women, men, and female youth. It operates in three segments: Corporate-Owned Stores, Direct To Consumer, and Other. The company’'s line of apparel include fitness pants, shorts, tops, and jackets for healthy lifestyle activities, such as yoga, running, and general fitness. Its fitness-related accessories comprise bags, socks, underwear, yoga mats, instructional yoga DVDs, and water bottles.

Lululemon Chairman Dennis Wilson is being accused of insider trading after it was revealed that he sold $50 million in Lululemon stock before Chief Executive Officer Christine Day announced that she would be stepping down. The unexpected retirement announcement has caused some turmoil in the stock. The athletic and fitness movement seems to be in full swing so companies like Lululemon stand to see rising demand. As consumers continue to shop for upscale athletic apparel and related products, look for Lululemon to see rising profits.

T = Technicals on the Stock Chart are Mixed

Lululemon stock has struggled to see higher prices over the last couple of years. The stock is now trading at the low part of a range extending back several months. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Lululemon is trading below its key averages which signal neutral price action in the near-term.

LULU

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Lululemon options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Lululemon Options

39.17%

6%

5%

What does this mean? This means that investors or traders are buying a very minimal amount of call and put options contracts, as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

July Options

Steep

Average

August Options

Steep

Average

As of today, there is an average demand from call buyers or sellers and high demand by put buyers or low demand by put sellers, all neutral to bearish over the next two months. To summarize, investors are buying a very minimal amount of call and put option contracts and are leaning neutral to bearish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Lululemon’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Lululemon look like and more importantly, how did the markets like these numbers?

2013 Q1

2012 Q4

2012 Q3

2012 Q2

Earnings Growth (Y-O-Y)

0.00%

48.21%

44.44%

50.00%

Revenue Growth (Y-O-Y)

21.03%

30.68%

37.50%

33.12%

Earnings Reaction

-17.53%

1.28%

7.26%

12.44%

Lululemon has seen increasing earnings and revenue figures over the last four quarters. From these numbers, the markets have expected a little more from Lululemon’s recent earnings announcement.

P = Weak Relative Performance Versus Peers and Sector

How has Lululemon stock done relative to its peers, Nike (NYSE:NKE), Under Armour (NYSE:UA), Gap (NYSE:GPS), and sector?

Lululemon

Nike

Under Armour

Gap

Sector

Year-to-Date Return

-15.28%

21.82%

24.50%

38.34%

18.82%

Lululemon has been a weak relative performer, year-to-date.

Conclusion

Lululemon provides highly-demanded athletic apparel to consumers across the nation. Recent news that the existing CEO is retiring has investors in the company worried. The stock has struggled over the last few years and is now near the low-end of trading range. Over the last four quarters, earnings and revenue figures have been on the rise; however, investors have expected a little more from the company’s most recent earnings announcement. Relative to its peers and sector, Lululemon has been a weak year-to-date performer. WAIT AND SEE what Lululemon does in coming quarters.