Gold Miners Still Can’t Get Earnings Right; Still Life in Newmont-Barrick Merger?

Earnings from Yamana Gold (AUY) and Barrick Gold (ABX), as well as the death of the merger between Barrick and Newmont Mining (NEM), are weighing on gold miners this morning.

Associated Press

Barrick Gold reported a profit of 20 cents a share, beating forecasts for 19 cents a share, on sales of $2.63 billion. Analysts had expected $2.6 billion. Barrick also lowered its copper guidance. No mention was made of a merger with Newmont Mining in Barrick’s press release.

Yamana Gold, meanwhile, reported a profit of 2 cents a share, missing forecasts for 4 cents. It said it will focus on its Canadian and Argentine operations.

Morgan Stanley’s Brad Humphrey and team assess Yamana’s miss:

[Yamana's] 1Q14 results missed consensus but were in line with our estimates. Gold and copper output came in below our forecasts, offset by lower than expected expenses. Due to seasonality, [Yamana] typically reports a weaker 1H. Given April results provided, output is trending up in Q2. [Yamana] Shares could be weak initially on back of consensus miss but going fwd, output is expected to trend up QoQ and if successful acquiring 50% of Osisko, political risk profile improves, with the addition of this material, long life, low cost asset.

Cowen’s Adam Graf and Misha Levental

[Barrick] 1Q14 adjusted earnings of $0.20/share, slightly ahead of consensus, down from $0.92/share y/y. The decrease primarily reflects the impact of lower metal prices and lower gold sales volumes. Additionally, lower earnings reflect the impact of asset sales that occurred since the second half of 2013, including the sale of the Kanowna and Plutonic mines in Australia and its 33% stake in the Marigold mine in Nevada in 2014.

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Full-year guidance remains on track for gold at 6.0-6.5MM oz Au at AISC of $920- $980/oz. Copper production has lowered, however, to 410-440MM lbs Cu (from 470-500MM), at original cost guidance of $1.90-$2.10/lb Cu. Copper production was lowered due to a processing disruption at Lumwana; the failure is currently being assessed, with production expected to resume in 3Q14.

And of course, there’s no mentioning Barrick without talking about Newmont Mining, which ended merger talks with Barrick this week. Credit Suisse analysts Anita Soni and Robert Reynolds asses the state of the negotiations:

In our view the potential remains for a merger/take-over of [Barrick] and [Newmont Mining] (either friendly or hostile), with the potential synergies likely accretive to a Newco’s [free cash flow and net asset value]. Key hurdles may be the Newco’s size and the headquarters location…

We maintain our Neutral as we view [Newmont Mining] as fairly valued on NAV and OpCFa vs. peers. Positively, [Newmont Mining] provides peer leading FCF in 2015 and 2016 with a resolution of the Indonesia export ban. With maturing current operations, [Newmont Mining] will weigh external M&A against its internal opportunities (Merian, Conga and Ahafo expansion) to reinvest FCF. On the other hand, [Newmont Mining's] favourable medium term FCF outlook and potential synergies make it an attractive partner for [Barrick], in our view.

Shares of Barrick Gold have dropped 1.4% to $17.42, while Yamana Gold has fallen 2.4% to $7.46 and Newmont Mining is off 0.5% at $24.90. The Market Vectors Gold Miners ETF (GDX) has declined 0.7% to $24.14, while the SPDR Gold ETF (GLD) is down 0.3% at $124.51.

 

Bear of the Day: Taseko (TGB) - Bear of the Day

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This year has been quite challenging for copper miners with declining demand for the metal and rising inventories. Disappointing results have in turn led to sharp downward estimates revisions, sending Taseko Mines to a Zacks Rank # 5 (Strong Sell).

About the Company

Headquartered in Vancouver, Canada, Taseko Mines Limited (TGB) owns and operates mining properties in Canada. The company currently produces copper and molybdenum.

Disappointing Results and Guidance

On May 2, 2013, Taseko reported it first quarter 2013 results. The quarter resulted in an adjusted loss of $2.9 million, down from net earnings of $3.1 million for the first quarter of 2013. On a per-share basis, the loss was $0.01 per share, below consensus.

Downwards Revisions

Due to disappointing results, quarterly and annual estimates have been revised sharply downwards in the past few weeks by analysts.

Zacks consensus estimate for the current quarter now stands at a negative $0.01 per share versus $0.04 per share, 60 days ago, while the full-year consensus estimate is $0.11 per share now, down from $0.21 per share.

The Bottom Line

While the company is trying to grow production and lower costs, lower copper prices resulting from high inventories and global slow-down continue to act as headwinds.

TGB is currently Zacks Rank # 5 (Strong Sell) stock and it has a longer-term recommendation of "Underperform". Further the Zacks Industry rank of 231 out of 265 also indicates weakness in the near- to mid- term. Thus we think investors should avoid this stock for the time being.

Better Play?

Investors looking for exposure to the mining industry could look at Avalon Rare Metals (AVL) or Stillwater Mining (SWC)--both Zacks rank#1 (Strong Buy) stocks with "Outperform' recommendation! .

Want the latest recommendations from Zacks Investment Research? Today, you can download7 Best Stocks for the Next 30 Days.Click to get this free report >>

2 Keys to Success for This Diabetes Drug's Second Chance

If at first you don't succeed, try, try again. We've heard that old saw many times, but it's good advice. It's also advice that two big pharmaceutical companies are heeding.

AstraZeneca (NYSE: AZN  ) and Bristol-Myers Squibb (NYSE: BMY  ) announced last week that they are making another attempt at U.S. regulatory approval for diabetes drug Forxiga. Will the two drugmakers be successful this time around? Here are two keys for Forxiga to emerge as a winner.

1. The data must deliver.
The Food and Drug Administration rejected approval of Forxiga in January 2012. Concerns about the drug's benefit-risk profile prompted the agency to request additional clinical data. This decision wasn't a major surprise at the time, considering that an advisory panel had previously recommended against approval of Forxiga because of safety concerns, including possible increased risk of breast and bladder cancers.

AstraZeneca and Bristol-Myers Squibb provided lots of new data with the resubmission. The companies announced that data was given to the FDA for several new clinical studies plus additional long-term data for up to a four-year period from studies submitted in the earlier application. This additional data increased the number of patient-years exposure to Forxiga by 50%.

A decision date for Forxiga has been set for Jan. 11, 2014. FDA approval now hinges on how convincing this new data actually is.

2. The market must make room.
Even if the FDA grants approval for Forxiga, another hurdle remains for ultimate success. The market could become crowded relatively quickly with diabetes drugs that use similar mechanisms of action.

Johnson & Johnson (NYSE: JNJ  ) obtained FDA approval in March for Invokana. Like Forxiga, the drug is a sodium glucose co-transporter 2, or SGLT2 inhibitor. SGLT2 inhibitors work by increasing the amount of glucose expelled in urine.

While J&J scored first with U.S. approval, the company is still seeking regulatory approval in Europe. AstraZeneca and Bristol already obtained European marketing authorization for Forxiga last November. It could be only a matter of time before Forxiga and Invokana go head-to-head in both markets, but they will probably face other competitors not too far down the road.

Eli Lilly (NYSE: LLY  ) and Boehringer Ingelheim submitted a New Drug Application, or NDA, for empagliflozin in March. This head start should enable the two companies to beat AstraZeneca and Bristol to the American market. Lilly and Boehringer also filed for regulatory approval in Europe. 

Pfizer and Merck (NYSE: MRK  ) are working together on development of SGL2 inhibitor ertugliflozin. The drug should begin late-stage trials in the near future. The companies are pursuing use of ertugliflozin as a stand-alone treatment and in combination with Merck's other diabetes drugs, particularly Januvia. 

Chances are...
My take is that AstraZeneca and Bristol-Myers probably have a good shot at winning FDA approval this time around. The FDA approved Invokana, which isn't too terribly different from Forxiga. Reams of new data should help swing the pendulum the other way compared to the first attempt at approval.

Despite what seems like a soon-to-be crowded market for SGLT2 inhibitors, I think there's still plenty of room for all. Analysts project near-blockbuster status for all of the drugs, with some seeing even higher potential.

AstraZeneca and Bristol-Myers Squibb need a success story with Forxiga, because the patent cliff has taken its toll in recent years. Both companies' revenue totals in 2012 dropped 17% compared to 2011.

The problem is that even if Forxiga gains FDA approval and competes effectively in the marketplace, it won't be enough on its own to reverse the downward trend for AstraZeneca and Bristol. Both companies have other pipeline opportunities, but they each need more keys for success than just one or two new drugs.

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Russia raises interest rate to 7.5%

Russia's central bank on Friday raised its benchmark interest rate half a percentage point to 7.5% to cope with rising inflation in another sign of widening economic fallout from the Ukraine crisis.

The increase follows a March 3 hike from 5.5% to 7% that bank had described as temporary.

The Bank of Russia's latest move came hours after Standard & Poor's cut Russia's credit rating to one notch above junk levels, citing the political tensions over Ukraine and the flight of investor capital.

"In our view, the tense geopolitical situation between Russia and Ukraine could see additional significant outflows of both foreign and domestic capital from the Russian economy and hence further undermine already weakening growth prospects," S&P said.

CRISIS BUILDS: U.S. allies threaten new sanctions

The Bank of Russia said that raising its key rate would slow inflation to no more than 6% by the end of the year. Consumer prices were up 7.2% in April from a year ago, the bank said, and it projected inflation would remain at that level until mid-year.

For comparison,annual inflation in the U.S. and in the 18 nations that use the euro is running well below 2%.

"The probability of inflation exceeding the 5.0% target at the end of 2014 has increased substantially," the Bank of Russia said.

The actions by S&P and the Bank of Russia follow a slowing of economic growth in Russia to 0.8% in the first quarter and capital flight of $70 billion by anxious investors. Russian officials have said more capital was taken out of the country in the first quarter of the year than in all of 2013.

Russia was facing deepening economic woes even before its actions in Ukraine. Its economy grew 1.3% in 2013, the lowest rate since 1999, excluding 2009 when the economy contracted amid the global financial crisis. S&P said its base forecast was for average annual growth of 2.3% a year in 2014 through 2017, but indicated that could prove too optimistic.

"In our view, if ! geopolitical tensions do not subside in 2014, there is significant downside risk that growth will fall well below 1%," S&P said.

Contributing: Associated Press

Coca Cola Appoints New Member to Board of Directors

Coca Cola (NYSE: KO  ) has elected Ana Botin to be the newest member of its Board of Directors. Botin is currently acting as CEO for British personal finance firm Santander UK plc, and her appointment on Coca Cola's Board will be effective immediately.

Prior to her Coca Cola appointment, Botin has received international recognition for her work within the banking industry. She established Santander's International Corporate Banking business in Latin America, headed investment and corporate strategies at JP Morgan in New York, and acted as Executive Chairman for the Banco Espanol de Credito, S.A. in Spain. Botin is also a founding member of the "Teach for America" network, the EmpiezaPorEducar.

Muhtar Kent, Coke's Chairman and CEO, is thrilled to bring Botin's "international perspective and high level of financial expertise" onto the company's Board of Directors. "Her knowledge of global macroeconomic issues, experience as an entrepreneur and commitment to sustainable communities will be invaluable as we continue to grow and develop our business around the world," he said.

This Catalyst Could Make American Express Earnings Soar

American Express (NYSE: AXP  ) is scheduled to release its quarterly earnings report tomorrow, and with the stock trading near all-time highs, investors expect a lot from the company this quarter. Even though the venerable member of the Dow Jones Industrials (DJINDICES: ^DJI  ) has already recovered handsomely from the financial crisis, shareholders still want to see how American Express' earnings can grow faster than they have in the past.

AmEx has taken steps to broaden its appeal by focusing on a different demographic that could boost its customer counts and introduce a whole new group of people to its products. But will those efforts work to produce greater profits or simply water down its premium brand? Let's take an early look at what's been happening with American Express over the past quarter and what we're likely to see in its quarterly report.

Stats on American Express

Analyst EPS Estimate	$1.22
Change From Year-Ago EPS	6.1%
Revenue Estimate	$8.3 billion
Change From Year-Ago Revenue	4.2%
Earnings Beats in Past 4 Quarters	2

Source: Yahoo! Finance.

How can American Express make earnings grow even faster?
Analysts have hung tough with their views on American Express earnings, keeping their June-quarter estimates steady but raising their full-year 2013 calls by $0.02 per share. The stock, meanwhile, has soared almost 19% since early April.

AmEx started off the quarter well, with its April report on first-quarter earnings presenting a mixed picture that nevertheless left shareholders satisfied. Although the company fell short of expected revenue estimates, it beat earnings estimates by $0.03 per share and announced both a 15% dividend hike and a $3.2 billion share buyback.

Yet the challenge AmEx has faced for a long time is how to keep distinguishing itself in an industry that's increasingly dominated by leading payment-processors Visa (NYSE: V  ) and MasterCard (NYSE: MA  ) . Both Visa and MasterCard have essentially used their payment networks as toll roads, luring third-party issuing banks to market their cards to customers and profiting from transaction volume, and they've issued 10 to 20 times the number of cards that AmEx has. By contrast, AmEx has adopted a much more vertically integrated business model, wherein AmEx maintains a much deeper connection to its cardholders, taking on credit risk but also reaping the rewards when it makes smart decisions about extending credit.

As a result, AmEx has benefited from the rise in the stock market and the overall economy. With its business still primarily centered on the U.S., AmEx has also reaped the rewards of being in the right place at the right time, as the U.S. has seen its stock market fare much better than the rest of the world, and with most of AmEx's traditional clientele enjoying the wealth effect, that should translate to higher network volume.

The wildcard catalyst for AmEx, though, is its Bluebird prepaid debit card. With broad appeal to a base of customers that AmEx has heretofore largely ignored, Bluebird could be a huge growth-driver or an immense flop, depending on whether its adoption goes according to plan. Rising numbers of part-time jobs in recent employment figures suggest that the low-end card market could gain strength, leading to growth for this segment for AmEx.

When American Express announces earnings, watch closely for news about how Bluebird is doing and whether it's as profitable as the company had hoped. While good conditions elsewhere should help AmEx grow, strength from Bluebird is what could really send growth much higher.

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‘No Easy Way to Win’ in Today’s Market: Shiller

Yale economist Robert Shiller says that the market ratio he developed is “rather high,” but that investors should still hold some stocks today.

That ratio, the cyclically adjusted price-to-earnings ratio, is now at 25.28. That is way off is historic high of 44.20 in December 1999, but also way above the market’s long-term average of 15.

The CAPE index was also quite high in 1996, when Shiller testified before the Federal Reserve, and then “it kept going for almost three more years,” the Nobel Prize winner said in an interview Friday on Yahoo Finance. “Even though it’s high, I still think stocks out to be part of someone’s portfolio — maybe not as big a part” as in previous times, he explained.

Overall, the economist is sanguine about investing and returns in 2014: “We are just not living in the best of times. The momentum is weakening in housing; stocks look overpriced; bonds are paying poorly; there’s risk there, too. There’s no easy way to win in this market. So I’m thinking, you have to diversify and probably keep something in stocks.”

As for technology and recent weakness in some social media and biotech companies, he is especially concerned. “When people get really excited about an investment, I tend to go the other way … It’s a contrarian instinct.”

He explained that the Barclays Shiller CAPE ETN (CAPE) is invested in health care and energy. Recently it moved into financials and technology. “These are all sectors with low CAPE relative to past performance," he said. "I think there is a better bet.”

Lewis Lessons

Discussing Michael Lewis’ latest book, “Flash Boys,” Shiller said, “It raises an important issue … for regulators to think about.”

But he also noted that Lewis is “being a little sensationalist. People should not be afraid of investing in the market.”

Shiller’s thinking is that that market has “been rigged in one sense or another from the beginning of its history. There have always been people trying to main the market or take advantage of front run.”

Housing Hints

Data on housing starts was weaker than expected last week. But whether that portends a shift in the housing recovery “is not clear to me yet,” he says. “Home prices were down a smidgen in the last couple of months, but season adjusted, they are still up.”

However, “It’s no longer at all clear that momentum is a safe bet anymore,” Shiller stressed.

“And momentum still appears to be up,” he said. “I’m thinking home prices should probably go up but at a reduced pace. They’re nothing to get excited about.”

And while he sees not “solid evidence of a fall,” the economist recommends investors “take these risks into account.”

Finally, when it comes to putting money into real estate versus equities, he suggests investors diversify. “It’s just common sense,” Shiller explained.

Worried About A Bear Market In Bonds? Read This

Interest rates remain near historic lows. And when they eventually rise, bond prices will fall, as the two move opposite to each other. The question of how much they will fall over the long term is important to investors. The last time rates were this low was in the 1950s. We can look at bond returns from that time for clues as to what will happen this time.

Federal Reserve data on 10-year interest rates extend back to 1954, when the yield on the 10-year Treasury note was about 2.5%. That rate would rise to near 15% by 1981.

As rates rose over that 27-year period, bond prices fell. However, bond investors did not suffer extraordinary losses.

As rates rose, investors received higher interest payments as they rolled over old investments into new bonds. Looking at the average rate of return from 1957 to 1981, we learn that bond investors made money. In fact, they more than doubled their money over that time.

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Over that long period of time, investments in stocks, bonds and Treasurys all made money.

These returns include interest payments and the gains and losses from price changes, which make up the total return a bond investor actually receives.

It is important to note that fixed-income investors made money in an environment of rising interest rates, because eventually, rates will rise. When rates do rise, we can see, with history as a guide, that investors may not suffer as much harm as they fear.

The gains in bonds were not extraordinary, and investors lost money in eight of the 27 years. Stock market investors also lost money in eight years over that time but enjoyed significantly larger gains overall. Investors in Treasurys accepted what are considered to be low rates of return and never suffered a loss over the course of a year.

 

While never experiencing a losing year, Treasurys also outperformed long bonds. This is a lesson that is likely to apply during the next period of rising rates. Fixed-income investments with shorter maturities can be reinvested quicker than long-term investments. This allows short-term investments to benefit from rising rates.

Fixed-income investors should consider using ETFs or mutual funds that have a large number of holdings. Managers of these funds will be rolling over investments throughout the year as some investments mature. This could allow them to enjoy quicker benefits from rising rates. Fund managers may also be able to sell some lower yielding investments to move into higher yielding investments as rates rise, a move that might not be practical or cost effective for an individual investor with a limited number of holdings.

In the table below, returns on Treasurys and the other investments are shown without considering inflation. When inflation is considered, the Treasury investor does suffer a loss in several years.

Over the entire time period, an investor in Treasurys would have had an after-inflation average annual gain of 0.73%. Investors in long bonds over that time also lost money after inflation.

Fixed-income investors should consider using short-term bond funds if they expect rates to rise. The best exchange-traded fund (ETF) for government bonds right now, in my opinion, is iShares Barclays 0-5 Year TIPS Bond (NYSE: STIP).

PIMCO 0-5 Year High Yield Corporate Bond Index ETF (NYSE: HYS) is among the best choices for corporate bond exposure, and PIMCO managers have demonstrated the ability to react quickly to changing market conditions.

Even when rates rise, fixed-income investors may not suffer steep losses over time, especially if they use ETFs that give the manager flexibility to take advantage of higher rates.

Note: Michael J. Carr has devised a simple system that tells investors exactly when to sell stocks before they tumble. Even better, his system has generated an average annual gain of 21.5% during the past decade -- trouncing the S&P's measly 7.3% gain. To learn more, click here.

This article originally appeared at ProfitableTrading.com
How to Protect Yourself in the Next Bond Bear Market

Top 5 Integrated Utility Stocks To Buy For 2015

LINN Energy (NASDAQ: LINE  ) had a "wait and see until we finish our Berry Petroleum (NYSE: BRY  ) acquisition" kind of quarter. While overall production jumped a very healthy 69% over last year, it just didn't quite meet what the company expected. Weather was part of the problem, but much of the company's woes came in one place: Texas. Does LINN have a problem with Texas' tea? Let's take a look at these pieces of bad news and see if the problems lie with LINN or the Lone Star State.�

Permian all plugged up
Although the news that takeaway capacity isn't quite up to snuff for many of the producing regions in the U.S., the Permian in particular has been suffering despite the region only producing at half the rate of its peak production back in 1973. LINN, and its operating arm LinnCo (NASDAQ: LNCO  ) , stated that it has reduced the amount of rigs it has working in the region and has focused on the western side of the basin because of stronger infrastructure there.�

Top 5 Integrated Utility Stocks To Buy For 2015: Discount Dental Materials Inc (DDOO)

Discount Dental Materials, Inc. (DDM), incorporated on December 18, 2007, is a development-stage company. The Company focuses on selling disposable dental supply products at discount prices over the Internet. As of November 30, 2011, the Company had not generated any revenues.

The Company focuses on selling a limited number of products including burs (modern dental drills that can rotate at up to 800,000 revolutions per minute (rpm) and generally use hard metal rotary files). Dental burs come in a variety of shapes designed for specific applications. They are often made of steel with a tungsten carbide coating or of tungsten carbide entirely. The bur may also have a diamond coating), bearings, turbines and sterilization pouches. The Company uses a facility in Burbank, California to store and ship products.

The Company competes with Henry Schein and Patterson Dental.

Advisors' Opinion:

• [By CRWE]

  Today, DDOO remains (0.00%) +0.000 at $1.05 thus far (ref. google finance Delayed:� 3:42PM EDT July 1, 2013).

  Cerebain Biotech Corp. a subsidiary of Discount Dental Materials, Inc. , previously reported that medical device product development company, Sonos Models, Inc. (��onos��, is set to complete the first prototypes of its medical device solution during the company�� first fiscal quarter, which begins July 1, 2013.

  Cerebain�� President, Eric Clemons, stated, ��e are excited with the imminent completion of the first set of prototypes of our Medical Device Product for the treatment of Alzheimer�� Disease. Years of hard work and research will culminate with the introduction of these prototypes which will utilize the Omentum for the treatment of patients with this debilitating disease. With these prototypes, we are introducing a leading edge approach to the treatment of Alzheimer�� Disease.��/p>

• [By CRWE]

  Last Friday, DDOO previously surged (+5.00%) up +0.05 at $1.05 with 10,200 shares in play at the close (ref. google finance June 28, 2013 ��Close).

  Bond Laboratories, Inc. previously reported NDS launched two exciting new products at the annual GNC庐 Global Franchise Convention.

  Cerebain Biotech Corp. a subsidiary of Discount Dental Materials, Inc. previously reported the appointment of Dr. Surinder Saini as Chairman of its Scientific Advisory Board. The advisory board provides key clinical insight into the company�� efforts to develop and commercialize a novel approach to the treatment for patients suffering from Alzheimer�� disease. Dr. Saini is the lead scientist behind the development of the world’s first medical device specifically designed for the treatment of Alzheimer�� disease utilizing the Omentum

Top 5 Integrated Utility Stocks To Buy For 2015: Acorn Energy Inc.(ACFN)

Acorn Energy, Inc., through its subsidiaries, provides technology driven solutions for energy infrastructure asset management worldwide. It offers sonar and acoustic related solutions for energy, defense, and commercial markets with a focus on underwater site security for strategic energy installations and other acoustic systems, as well as develops and produces real-time embedded hardware and software. The company also develops and markets remote monitoring systems to electric utilities and industrial facilities, which are used in a range of utility applications, including outage management, power quality monitoring, system planning, trouble shooting and proactive maintenance, and condition monitoring; and provides the intelligence to transmission and distribution network operators. In addition, it develops and produces fiber optic sensing systems for the energy, commercial security, and defense markets. The company?s patented ultra-high sensitivity fiber optic sensors a re designed to replace electronic sensors with fiber optic sensors. Further, it engages in the design, manufacture, marketing, and sale of wireless remote systems that monitor standby power generation, backup power generators, remote powered equipment, cellular towers, emergency towered communications, and remote tower sites; cathodic protection products to monitor pipeline integrity; and other wireless remote systems. Acorn Energy, Inc. was founded in 1986 and is based in Montchanin, Delaware.

Advisors' Opinion:

• [By Roberto Pedone]

  A technology stock that's starting to move within range of triggering a big breakout trade is Acorn Energy (ACFN), which provides digital solutions for energy infrastructure asset management. This stock has been hit hard by the sellers in 2013, with shares off sharply by 48%.

  If you take a look at the chart for Acorn Energy, you'll notice that this stock has started to spike higher here back above its 50-day moving average of $3.66 a share. This stock has also found significant buying interest over the last two months, each time it has pulled back to around $3.50 to $3.20 a share. Shares of ACFN are now quickly moving within range of triggering a big breakout trade above some key near-term overhead resistance levels.

  Traders should now look for long-biased trades in ACFN if it manages to break out above some key near-term overhead resistance levels at $4.24 to $4.64 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 344,835 shares. If that breakout triggers soon, then ACFN will set up to re-test or possibly take out its next major overhead resistance levels at $5.50 to $6 a share. Any high-volume move above $6 will then put its next major overhead resistance levels at its 200-day moving average of $6.35 to $6.68 a share into range for shares of ACFN.

  Traders can look to buy ACFN off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $3.66 a share, or right around some major support at $3.21 a share. One could also buy ACFN off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Top 5 Financial Stocks To Buy Right Now: Electro Scientific Industries Inc (ESIO)

Electro Scientific Industries, Inc. (ESI) incorporated on April 19, 1949, is a supplier of laser-based manufacturing solutions for the microtechnology industry. The Company operates high-technology manufacturing equipment, which consists of products that are organized in three groups: interconnect & microfabrication, semiconductor and components. The Company�� laser systems enable precise structuring of micron to submicron features in components and devices which are used in a wide variety of end products in the consumer electronics, computer, semiconductor, communications and other markets. Its laser microfabrication systems allow microelectronics, semiconductor, and other microtechnology manufacturers to physically alter select device features during high-volume production. In June 2012, it acquired Eolite Systems.

The Company�� laser-based systems improve production yields or enable improved performance for flexible and rigid high density interconnect printed circuit boards, semiconductor devices, light emitting diodes (LEDs), advanced semiconductor packaging, touch-panel glass, flat panel liquid crystal displays (LCDs) and other high value components. Additionally, it produces high-capacity test and inspection equipment that is critical to control process during the production of multilayer ceramic capacitors (MLCCs). Its equipment ensures that each component meets the electrical and physical tolerances required to perform properly. Lastly, it produces systems that use photonic technology to perform precision inspection for control and defect identification. The Company�� Interconnect & Microfabrication Group products address an expanding number of applications and materials on a broad set of substrates, including panels, continuous-feed reels, and discrete three dimensional components or devices.

Interconnect Via Drilling

For electrical interconnect applications, The Company�� laser via micro fabrication systems target applications that require the ! highest accuracy and smallest via (hole) dimensions to create electrical connections between layers in flexible circuits, high-density circuit boards and IC packages. The Company�� microvia drilling technology addresses the rapidly changing applications in IC packages, multichip modules and HDI circuit boards. Its ultraviolet (UV) laser processing systems employ technology in lasers, optics and motion control.

Advanced Microfabrication

The Company offers several platforms that enable customers to perform precision drilling, scribing, cutting, etching, routing or marking on many different types of materials and devices including glass, metal, plastic, paint and ceramics. It also offer laser ablation systems that ablate material for identification and analysis applications, including forensics, mineral analysis and research.

Semiconductor Group (SG)

The Company�� Semiconductor Group products address multiple applications that utilize laser energy to process materials on wafer-based substrates. This includes traditional silicon wafers, LEDs wafers, and new ultrathin silicon wafers used in the three-dimensional (3D) packaging applications. Semiconductor Memory Yield Improvement Systems includes semiconductor memory yield improvement products are designed to cost-effectively enable post-repair yield improvements in the manufacturing of dynamic random access memory (DRAM) memory devices.

3D Semiconductor Wafer Processing

The 3D chip packaging technologies is driving the need for silicon wafers to become thinner in order to allow for stacking of wafers within the same packaging geometry. As wafers become thinner, they become more challenging to cut into discrete chips using traditional mechanical saws. The Company�� model 9900 uses a laser to dice ultra-thin silicon wafers, those with a thickness of 50 microns or below, and to singulate interposers. In addition, this platform can be used to scribe next generation thin film ! materials! that lend themselves to laser processing.

LED Wafer Scribing

The Company�� AccuScribe line of sapphire wafer scribing systems is a key component in the manufacture of LEDs. During production, LEDs are created on a thin wafer of synthetic sapphire crystal that must be broken into individual units at the end of the process. The brittle nature of the sapphire wafer requires that it be carefully cut in order to prevent unwanted fractures, yield losses, and lower light output when the wafer is broken apart into discrete LEDs. The AccuScribe systems use a laser to scribe the wafer with a precise groove between individual LEDs. When mechanical force is applied to the wafer, it fractures along these grooves and allows the wafer to be split apart into discrete LEDs. These systems are capable of scribing both standard and high brightness designs for general illumination applications. In addition, this platform can be used to address singulation of various LED packaging materials.

LCD Repair

The Comapny's laser LCD repair systems are critical to improving yields in the manufacture of flat panel displays. During production, individual pixels of a display may develop electrical defects that result in no light emission or the emission of only a steady white light. To correct these defects, flat panel display producers employ a laser repair process to isolate the electrical defects during production by cutting the inputs to the pixel. Its laser systems are primarily sold to the manufacturers of LCD repair tools as a key component of their products.

Semiconductor Systems

The products include industry wafer marking equipment, wafer and circuit trim tools, and LCD repair tools. Wafer marking equipment is used for serialization and wafer identification by both manufacturers of semiconductor wafers and within semiconductor fabs. Wafer and circuit trim tools are laser systems that adjust the electrical performance of semiconductor devic! es or hyb! rid circuits by removing a precise amount of material from one or more circuit components.

Components Group (CG)

The Company designs and manufactures products that combine high-speed small parts handling technology with real-time control systems to provide automated, cost-effective inspection solutions for manufacturers of MLCC and other passive components such as capacitor arrays, inductors, resistors, varistors and hybrid circuits. These components, produced in quantities of trillions of units per year, process analog, digital and high-frequency signals and are used in all electronic products.

The Company provides several types of products and solutions in this market. Its MLCC test systems employ high-speed handling and positioning techniques to precisely load, test and sort MLCCs based on their electrical energy storage capacity, or capacitance, and their electrical energy leakage, or dissipation factor. Its 35XX series is the productive tester. Its 3510 model enables high speed testing of the industry�� smallest metric 0402 capacitors used primarily in advanced cell phone and tablet designs. It also produces consumable products, such as carrier plates and termination belts, both of which are used to hold MLCCs during the manufacturing and testing process.

The Company competes with Mechanics, Ltd., LPKF Laser & Electronics AG, Mitsubishi Electric Corporation, Orbotech Ltd., InnoLas Systems GmbH, DISCO Corporation, Laser Solutions, Inc., Quantel USA, Inc., Humo Laboratory, Ltd. and HOYA Corporation.

Advisors' Opinion:

• [By Eric Volkman]

  Electro Scientific Industries (NASDAQ: ESIO  ) has a new division under its corporate wing. The company has inked a definitive agreement to purchase the semiconductor systems unit of GSI Group (NASDAQ: GSIG  ) . The terms of the deal were not disclosed.

• [By Evan Niu, CFA]

  What: Shares of Electro Scientific (NASDAQ: ESIO  ) popped briefly today, up by 11% at the high, after the company reported earnings.

  So what: Revenue in the fiscal fourth quarter totaled $39.6 million, which translated into a non-GAAP net loss of $1 million, or $0.03 per share. Both figures came out better than expected, as consensus estimates were calling for $38.1 million in revenue and an adjusted loss of $0.07 per share.

Top 5 Integrated Utility Stocks To Buy For 2015: bebe stores inc.(BEBE)

bebe stores, inc. engages in the design, development, and production of women?s apparel and accessories. Its products include a range of separates, tops, dresses, active wear, and accessories in career, evening, casual, and active lifestyle categories. The company markets its products under the bebe, BEBE SPORT, bbsp, and 2b bebe brand names targeting 21 to 34-year-old woman. As of July 2, 2011, it operated 252 retail stores, and an online store at bebe.com in the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Japan, and Canada, as well as 60 international licensee operated stores in south east Asia, the United Arab Emirates, Israel, Russia, Mexico, and Turkey. The company was founded in 1976 and is headquartered in Brisbane, California.

Advisors' Opinion:

• [By Jeremy Bowman]

  What: Shares of Bebe Stores (NASDAQ: BEBE  ) were back in style today, gaining as much as 11% after receiving an upgrade from Janney Capital from Neutral to Buy.

Top 5 Integrated Utility Stocks To Buy For 2015: Enzon Pharmaceuticals Inc. (ENZN)

Enzon Pharmaceuticals, Inc., a biotechnology company, engages in the research and development of therapeutics for cancer patients with unmet medical needs. The company?s drug-development programs utilize two platforms-Customized PEGylation Linker Technology and third-generation mRNA-targeting agents utilizing the Locked Nucleic Acid (LNA) technology. It currently holds four compounds in clinical development and multiple novel LNA targets in preclinical research. The company?s development product pipeline consists of PEG-SN38 compound that utilizes Customized Linker Technology, which is in Phase II clinical trials for the treatment of metastatic colorectal and breast cancer, as well as a Phase I trial for pediatric patients with cancer; and the Hypoxia-Inducible Factor-1 alpha antagonist in Phase I studies for the treatment of solid tumors and lymphoma. Its product line also comprises Survivin antagonist in Phase I study in pediatric patients with recurrent acute lymphoblas tic leukemia; Androgen Receptor antagonist, a validated target for the treatment of prostate cancer that is in a Phase I study in patients with castration-resistant prostate cancer; and rights to five compounds, including AR, HER3, beta-catenin, PI3KCA, and Gli2. Enzon Pharmaceuticals, Inc. was founded in 1981 and is headquartered in Piscataway, New Jersey.

Advisors' Opinion:

• [By Monica Wolfe]

  Over the past week Seth Klarman (Trades, Portfolio) of The Baupost Group made one real time reduction; the guru reduced his holdings in Enzon Pharmaceutical (ENZN).� The guru cut his holdings in the company -43.6% by selling 3,353,595 shares of the company�� stock.� He sold these shares at an average price of $1.15 per share; the shares are still currently trading at around the same price.

• [By Bryan Murphy]

  With just a quick glance at the company's recent news (or lack thereof), Enzon Pharmaceuticals Inc. (NASDAQ:ENZN) doesn't look like anything all that special... or even trade-worthy. It only takes a brief look at the chart of ENZN, however, to conclude this stock - lack of new or not - has just become something trade-worthy, because the rest of the market has clearly started to fall back in love with it; there's no telling at what price the love affair could end.

• [By Lisa Levin]

  Enzon Pharmaceuticals (NASDAQ: ENZN) shares fell 2.57% to touch a new 52-week low of $1.11. Enzon Pharmaceuticals shares have dropped 75.85% over the past 52 weeks, while the S&P 500 index has gained 24.92% in the same period.

Lululemon Athletica, in the Spotlight Soon

Lululemon Athletica (Nasdaq: LULU  ) is expected to report Q1 earnings on June 10. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Lululemon Athletica's revenues will grow 19.5% and EPS will wane -6.3%.

The average estimate for revenue is $341.4 million. On the bottom line, the average EPS estimate is $0.30.

Revenue details
Last quarter, Lululemon Athletica reported revenue of $485.5 million. GAAP reported sales were 31% higher than the prior-year quarter's $371.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.75. GAAP EPS of $0.74 for Q4 were 45% higher than the prior-year quarter's $0.51 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 56.5%, 20 basis points better than the prior-year quarter. Operating margin was 31.4%, 20 basis points better than the prior-year quarter. Net margin was 22.5%, 270 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.64 billion. The average EPS estimate is $2.02.

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Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,024 members out of 1,358 rating the stock outperform, and 334 members rating it underperform. Among 382 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 288 give Lululemon Athletica a green thumbs-up, and 94 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lululemon Athletica is outperform, with an average price target of $79.37.

Selling to fickle consumers is a tough business for Lululemon Athletica or anyone else in the space. But some companies are better equipped to face the future than others. In a new report, we'll give you the rundown on three companies that are setting themselves up to dominate retail. Click here for instant access to this free report.

Add Lululemon Athletica to My Watchlist.

10 Best “Strong Buy” Stocks — UA POWR QIHU and more

Popular Posts: 7 Biotechnology Stocks to Buy Now15 Oil and Gas Stocks to Sell Now6 Internet and Web Service Stocks to Buy Now Recent Posts: Hottest Healthcare Stocks Now – LCI LGND AGN ACT Biggest Movers in Technology Stocks Now – GRUB MDSO GTAT CSGP Hottest Financial Stocks Now – OAK BLK GNW CACC View All Posts

This week, these ten stocks, all currently earning A’s (“strong buy”) on Portfolio Grader, have the best year-to-date performance.

Since January 1, the price of Under Armour, Inc. Class A () has grown 36.5%. Under Armour manufactures performance apparel, footwear, and accessories for men, women and children. .

The price of PowerSecure International, Inc. () has seen a 39.8% boost since the first of the year. PowerSecure International provides energy management and conservation solutions to utilities and their commercial, institutional and industrial customers. .

Since the first of the year, the price of Qihoo 360 Technology Co., Ltd. ADR Class A () has swelled 44.3%. Qihoo 360 Technology provides Internet and mobile security products in the People’s Republic of China. .

Top Services Companies To Invest In Right Now

The price of Green Plains Renewable Energy, Inc. () is up 47.9% since the first of the year. Green Plains Renewable Energy constructs and operates dry mill, fuel-grade ethanol production facilities. .

Shares of Shanda Games Ltd. Sponsored ADR Class A () have risen 50% since January 1. Shanda Games develops, sources and operates Internet games in China. The stock’s trailing PE Ratio is 7.40. .

Since January 1, Illumina, Inc. () has jumped 57%. Illumina develops, manufactures and markets integrated systems for the large-scale analysis of genetic variation and biological function. .

Since January 1, YY, Inc. Sponsored ADR Class A () has climbed 65.8%. YY operates an online social platform in the People’'s Republic of China. .

Since January 1, Forest Laboratories, Inc. () has shot up 66.7%. Forest Laboratories develops, manufactures, and sells both branded and generic forms of ethical products which require a physician’s prescription. .

Since the first of the year, shares of Rentrak Corporation () have soared 68.5%. Rentrak is an information management company serving the media, entertainment, retail, advertising and manufacturing industries. .

Shares of Insys Therapeutics, Inc. () have leaped 81.6% since January 1. INSYS Therapeutics develops pharmaceutical products that target the unmet needs of cancer patients, with a focus on cancer-supportive care. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Almost All S&P 500 Gains Happen on a Tuesday: StockTwits

NEW YORK (TheStreet) --Market strategist Ryan Detrick recently shared a remarkable chart.

It shows how important each Tuesday has been to the stock market so far this year. The S&P 500  is down nearly 1% year-to-date, but it would be down much more if it weren't for what has occurred on each Tuesday.

There have been 15 Tuesdays since 2014 started and the S&P 500 has only closed down on two of them. It currently has an average return of roughly 0.55%. Every other day of the week has an average return that is much worse, and negative. Monday, for example, is the worst at -0.25%. Friday is the next worst at -0.22%.

Best Growth Companies To Invest In Right Now

The simple fact is that, for some reason we do not have an answer to, Tuesday has been the biggest day to buy. It's kept the market even somewhat buoyant since the start of the year. If we removed all of the gains that have occurred on Tuesday, the S&P 500 would be down a huge 8%: As discussed w @srussolillo, $SPX w/o Tuesday -8.3% YTD. Here's the chart. cc: @carlquintanilla http://stks.co/i0V8u - Ryan Detrick (@RyanDetrick) Apr. 15 at 10:39 AM SEE ALSO: Ryan Detrick breaks down every day of the week in this table. You can follow the author of this article on StockTwits and Twitter This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Stock quotes in this article: ^GSPC 

Compuware Corp. Might Be Leading the APM Industry

Since 1973 Compuware Corp (CPWR) has been providing software solutions both on-premise and through a software as a service (SaaS) model, as well as professional technical services related to mobile application developments and mainframe systems. The company reported revenues of $944.5 million in fiscal 2013, working through four segments: Performance Management (APM), Mainframe, Changepoint and Uniface. Through the APM segment Compuware provides services to maximize efficiency of web, non-web, mobile, streaming and cloud applications. Mainframe solutions are designed for organizations which require high developer productivity and enhanced service quality at lower costs, and through Changepoint it provides Professional Services Automation (PSA) and Project Portfolio Management services (PPM). Uniface, a rapid application development platform, creates renews and integrates enterprise applications. Currently, more than 7,100 companies, including many of the world's largest organizations, depend on Compuware and our new generation approach to performance management to do just that.

Results for third-quarter 2013 were above estimations regarding earnings, but below average in revenue. The challenges presented by the European market, plus the inactive IT spending have affected the firm's revenues. A restructuring plan is on track, with the recent divestment of Changepoint, Professional Services and Uniface business units for $112.0 million in cash to M4 Global Solutions Holding B.V. during Jan 2014. These efforts are directed towards enhancing the core business over the long run, developing an innovative product pipeline at reduced costs to boost profitability. Nevertheless, the company faces intense competition from peers such as International Business Machines Corp. (IBM), BMC Software, Hewlett-Packard Company (HPQ), Accenture plc (ACN), and Computer Sciences Corp. (CSC).

Leading Provider

Compuware is premium provider of system management software, with a large –and growing- product portfolio. The effective convergence and integration of cloud, social collaboration, and mobile technologies, are expected to stimulate the company's revenue source. Recently, leading analyst firm Ovum has recognized Compuware Corp. (CPWR) as market leader in Application Performances Management, being thus, presently, the only APM vendor to be consistently recognized as market leader. Ovum stated: "Compuware should be on the shortlist of enterprises looking for a state-of-the-art APM solution." The fact that Compuware APM is light, smart and proactive makes it appealing to customers, as well as suitable to manage the complexity of today's challenging applications.

Recent focus has been put in expanding its reach in the mobile applications market and strategic acquisitions and partnerships. The ongoing restructuring plan, with the strategic divestment of Changepoint, Professional Services and Uniface business, aims to save an amount of approximately $120.0 million on an annual basis, while focusing on the core business. Moreover, the improving domestic economy and overall macroeconomic environment within international markets are likely to drive demand in the near term, helping Compuware boost sales and profitability. IT spending is expected to rise to $3.8 trillion in 2014, increasing 3.1% compared to 2013.

Acquisitions

The addition of dynaTrace in 2011 is expected to increase subscription fees and the partnership with IBM is estimated to help Compuware penetrate the growing business analytics market over the long term. Furthermore, the firm has engaged in possible buyout discussions with private equity funds such as Blackstone Group LP, TPG Capital LP, Vista Equity, Thoma Bravo and Golden Gate Capital.

Acquisitions present positive growth opportunities for the company, nevertheless, integrations always imply risks and costs. Frequent acquisitions might distract management from evaluating sway of organic growth, as well as impacting negatively the firm's balance sheet.

Final Thoughts

This industry is indeed a competitive one, and Compuware faces some challenges, and continued pricing pressure is expected to hurt company's margins. Focus on innovation in software is a key element to attract new customers as well as to provide existing clients new services. There's no doubt an increased expense will be hurting profitability in the near term, however Compuware reported positive third-quarter fiscal 2014 earnings of $0.15 per share, surpassing analysts' estimations.

Top 10 Gas Utility Stocks To Watch Right Now

Analysts think the company's major headwind is its technology concentration. The fact that most of Compuware's software products are designed to work only on IBM and IBM-compatible mainframe computers generates an overdependence that hooks software revenues to the continued use of IBM products. Moreover, should the technology be changed, it would involve a significant investment from Compuware. This dependence might rationalize growth prospects.

Still, the firm's initiatives are likely to improve margins and help Compuware counter the strong competition panorama. Expecting APM to grow 9.0% in 2014 and with new program wins and enhanced product pipeline, Compuware expects revenues in the range of $915.0 $925.0 million.

Disclosure: Damian Illia holds no position in any of the stocks mentioned.

About the author:Damian IlliaA fundamental analyst at Lonetreeanalytics.com constantly looking for value and income investments.

Visit Damian Illia's Website

Currently 5.00/512345 Rating: 5.0/5 (1 vote)

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America's Two Largest Providers of Wired Broadband

Top Cheapest Stocks To Invest In Right Now

Comcast Corporation (CMCSA) is a media and technology company with two businesses, Comcast Cable and NBCUniversal Media LLC. The company has five segments: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks.

In this article, let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment.

$45 Billion Deal

It comes less than a year after Comcast completed the acquisition of NBC Universal. In this opportunity, the company had agreed to buy Time Warner Cable (TWC) for $45 billion in a deal that would combine the two biggest cable companies in the United States.

Time Warner Cable investors will receive 2.875 Comcast stock for each of their shares. The purchase values each Time Warner Cable share at almost $160.Analysts say the consolidation could help Comcast to compete with satellite providers like DirecTV (DTV), wireless phone companies like AT&T (T) and new streaming services like Netflix (NFLX). On the other hand, Comcast will not have to take on any new debt, because it is an all-stock deal with newly issued shares.

Last year, the combined total revenue was approximately $86.8 billion and a 10% net profit margin. Comcast is expected to derive a significant $1.5 billion of operating synergy from this merger of which 50% may be realized within the first year after merger.

The advantages for consumers are: network upgrades, better cable TV services, and expanded broadband access for low-income users.

Although Comcast and Time Warner Cable do not compete directly in any markets, regulators are likely to take a close look at the potential impact. Recently, the companies have filed a request for review with the Federal Communications Commission, one of the agencies that will have to approve the deal between both companies. The merger will take effect by the end of the year.

Relative Valuation, Earnings and ROE

In terms of valuation, the stock sells at a trailing P/E of 19.6x, trading at a discount compared to the industry mean, which indicates that the stock is relatively undervalued. Earnings per share (EPS) has increased by 28.6% in the most recent quarter compared to the same quarter a year ago, $0.76 per share for the fourth quarter. In the next graph we include the stock price because EPS often lead the stock price movement. As we can appreciate in the chart, the price performance had an upward trend over the last five years.

Finally, I always like to see one of the most important financial ratios applying to stockholders, the best measure of performance for a firm's management: the return on equity. The ratio has increased from the same quarter one year prior. This is a clear sign of strength within the company.

Let´s compare the current ratio with the peer group in the next table:

Ticker	Company Name	ROE (%)
CMCSA	Comcast	13.45
TWC	Time Warner Cable	28.14
DISH	DISH Network Corp	82.64
LINTA	Liberty Interactive Corp	7.22
RCI	Rogers Communications, Inc.	45.12
SJR	Shaw Communications, Inc.	17.84
TIVO	Tivo, Inc.	49.5

The company has a current ratio of 13.45% which is higher than the one registered by Liberty Interactive Corp (LINTA). But for investors looking for a higher ROE, Time Warner Cable, DISH Network Corp (DISH), Rogers Communications, Inc. (RCI), Shaw Communications, Inc. (SJR) and Tivo, Inc. (TIVO) could be better options.

Final Comment

We think the strategic acquisitions will further extend Comcast's lead as the nation's largest cable operator. Comcast will expand its existing services to cover TWC customers and extends its leadership in the cable industry.

I would recommend investors to consider adding the stock for their long-term portfolios. Hedge fund gurus have also been active in the company in the fourth quarter of 2013. Gurus like Murray Stahl (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Glenn Greenberg (Trades, Portfolio), Robert Olstein (Trades, Portfolio), David Tepper (Trades, Portfolio), Chase Coleman (Trades, Portfolio), Larry Robins and Caxton Associates (Trades, Portfolio) have taken long positions on it.

Disclosure: Victor Selva holds no position in any stocks mentioned.

Also check out: Caxton Associates Undervalued Stocks Caxton Associates Top Growth Companies Caxton Associates High Yield stocks, and Stocks that Caxton Associates keeps buying David Tepper Undervalued Stocks David Tepper Top Growth Companies David Tepper High Yield stocks, and Stocks that David Tepper keeps buying

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The Government Is About to Turn This Beast Loose on You

Do you know Ally Financial Inc.?

You've no doubt seen their commercials. They used to be all over the tube hawking their high-yielding certificates of deposit. Now they're all over the tube with their "no hidden fees" campaign.

I like the one where the woman is afraid to try new things because she's had bad experiences before. Her mechanical dog sparks a fire when he drinks water and her trainer hooks her up to electrodes that zap her. I like these commercials; they're funny.

But Ally isn't funny.

It recently announced that it's launching an initial public offering (IPO) of its stock at a price per share of $25 to $28. The shares will be offered by the U.S. Treasury as part of its planned exit of its investment in Ally during the subprime crisis in 2008.

I've heard some analysts say this could be a good deal for investors.

But I can't believe the U.S. government wants to unleash this on the public.

The Truth About Ally Financial

Ally was formerly GMAC (General Motors Acceptance Corporation), a finance unit of General Motors. They got stupid-greedy and got into subprime-mortgage lending instead of sticking to their auto-financing knitting.

GMAC looked clever for a while.

And all-too-clever Cerberus Capital Management (the giant hedge fund/private equity shop) bought a 51% interest in them in 2006. (Then Cerberus bought Chrysler. Not two of their better moves.)

GMAC imploded mostly because its subprime unit, Residential Capital LLC, sunk the company.

GMAC had to be rescued. The government bailed it out with $17.2 billion in TARP money. But it needed another $3 billion more (no one seems to remember that) in "liquidity" backstopping, which it got from the U.S. Federal Reserve after it begged to become a bank-holding company to feed at the Fed's free-money-for-failures trough.

Do you know what they did next, in a feeble attempt to give themselves a makeover and regain the public's trust?

They changed their name to the friendly-sounding Ally Financial (as in "I'm your ally") on May 15, 2009.

Then, with the government's backstop, Ally began to grow its deposit base. Investors weren't putting money into the company, which is why the government had to come in. But the weak bank was allowed to advertise for depositors.

They shilled for themselves, offering high-rate CDs. You know about high-rate CDs, right? They caused the S&L crisis. They are high-interest payments to depositors to lend the bank money, which it then lends out at higher rates for a profit.

Okay, if you have to pay high rates to get deposits into your bank, where are you going to find borrowers that are going to pay higher than market interest rates so your bank turns a profit?

Oh, that would be subprime all over again.

Only, this time Ally is playing the game with subprime auto loans.

Good for them. They've gone back to their auto-lending roots. Too bad that's potentially bad for you if you're dumb enough to invest in Ally when it goes public.

Most of Ally's loan book is auto loans. And most of those are probably subprime. We'll see how much of their book is autos and how much is subprime when we get a look at their S1 IPO filing documents.

In the meantime, Bloomberg reported that LTV, that's loan-to-value, for subprime autos rose from 112% in 2012 to 114.5% at the end of 2013. That means lenders are lending 14.5% more than the automobile being purchased and financed is worth!

Seriously? Why are lenders lending more than a car is worth? Is there some new math I don't know about that adds depreciation back onto the value of an asset that makes it worth more when you drive it out of the showroom? Or better yet, off the used car lot?

Exeter Finance, which was bought by Blackstone Group, recently said they're seeing an increase in late payments on up to 7.8% of outstanding loans, up from 5% in 2012.

And about GM, their auto dealers with the weakest finances owed them $12 million at the end of 2012. At the end of 2013 the amount those dealers owed GM had risen to $1.6 billion, according to Bloomberg.

So, now the U.S. government, which coddled GMAC, stroked it back to health, let it borrow from depositors at high rates to lend out at higher rates in order to make more money to pay it back and look profitable... wants to unleash it on the public?

That's going to be a winner, for sure.

And by the way, there are other short-selling opportunities about to float to the top of the "let's make money on this crap falling" game, as more subprime auto lenders are getting deeper and deeper into the swamp.

Next: Everyone's talking about Michael Lewis' new book "Flash Boys" and high-frequency trading, but here's the real reason the stock market is rigged...

GM Adds Another Repair to Recalled Cars

David Goldman/AP DETROIT -- General Motors has to repair another part on the 2.6 million small cars already being recalled for an ignition switch defect. That will add to GM's recall-related expenses. GM on Thursday said it expects to take a charge of $1.3 billion in the first quarter, up from an earlier estimate of $750 million. GM has announced recalls covering 6.3 million vehicles, and offered loaner cars for some customers who are awaiting repairs. GM (GM) is scheduled to report first-quarter earnings on April 24. GM said it will replace ignition lock cylinders on all of the cars to make sure drivers can't remove the keys while the engine is running. It also may reprogram some keys. Right now, drivers can remove the key while the engine is still running, which could lead to a rollaway or crash, the company said. GM knows of one related injury due to the defect. The recall affects these models: 2003-2007 Saturn Ion 2005-2010 Chevrolet Cobalt 2006-2010 Pontiac Solstice 2007-2010 Pontiac G5 2007-2010 Saturn Sky 2006-2011 Chevrolet HHR Most of those -- 2.2 million -- were sold in the U.S. Included in the recall are 367,972 cars sold in Canada, 20,558 sold in Mexico and 11,672 sold elsewhere. The same cars were recalled for defective ignition switches that can cause sudden stalling. GM links 13 deaths to that issue, which is under investigation by the U.S. government. GM spokesman Kevin Kelly said the company first started hearing complaints about the ignition cylinder problem in 2005. The company said it has gotten several hundred complaints about keys coming out of the ignition. GM hasn't yet established a schedule for the recalls, but will notify customers when parts are ready. Karl Brauer, a senior analyst at Kelley Blue Book, said the extent and cost of the ignition switch recall has grown dramatically since it was first announced in February. This is the fourth expansion of that initial recall. "Much of this stems from GM's desire to comprehensively address all aspects of the recall, though there's also growing concern over potentially deceptive or criminal behavior that could result in government fines," Brauer said.

Top 5 Forestry Stocks To Invest In 2014

Top 5 Forestry Stocks To Invest In 2014: Glencore Xstrata PLC (GLENN)

Glencore Xstrata Plc is a diversified natural resource company. The Company operates in three segments: Metals and Minerals, which includes copper, nickel, zinc/lead, alloys, alumina/aluminum and iron ore; Energy Products, which includes controlled and non-controlled coal mining and oil production operations and investments in strategic handling, storage and freight equipment and facilities, and Agricultural Products, which focuses on grains, oils/oilseeds, cotton and sugar. The Company's operations consist of over 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities. The Company is a producer and marketer of over 90 commodities, such as mobile phones, bicycles, cutlery, plastics and electricity. Effective January 2, 2014, Post Holdings Inc acquired Agricore United Holdings Inc from Viterra Inc, a unit of Glencore Xstrata PLC, and the transaction also included Dakota Growers Pasta Company, Inc. Advisors' Opinion:

• [By Jay Silverman]

  The CEO (Erck), CFO (Phillips), and CMO (Glenn) are a solid management team, well-experienced in their respective roles, and have a sound working chemistry and quiet confidence.

source from Top Stocks Blog:http://www.topstocksblog.com/top-5-forestry-stocks-to-invest-in-2014.html

Bitcoin players knock on Washington doors

Bitcoin proponents want to make sure they have a say in how Washington ultimately regulates the virtual currency.

WASHINGTON (CNNMoney) Bitcoin is knocking on Washington's doors.

Bitcoin companies are hiring lobbyists, visiting lawmakers on Capitol Hill and writing to agencies about how they should write rules that will determine the future of the fast-growing virtual currency.

It's all part of a push to shape how Washington ultimately regulates the independent, digital money that is growing in popularity.

"The most important thing we're doing is explaining how Bitcoin works," said Jim Harper, a lobbyist who was hired recently as counsel for the Bitcoin Foundation, an organization that represents Bitcoin companies and investors. Harper, who has lobbied for PayPal and VeriSign, is paid in bitcoin.

The timing is ripe.

Just two weeks ago, the Internal Revenue Service issued a rule to tax bitcoin as property. The Federal Election Commission is also expected in the next several weeks to decide whether people can contribute to political campaigns using bitcoin. Another federal agency, the Commodity Futures Trading Commission, is expected to rule whether Bitcoin is a traded commodity, like gold or interest rates.

All of this comes as Bitcoin is under increased scrutiny. On Tuesday, Attorney General Eric Holder told lawmakers during a Congressional testimony that Bitcoin and other virtual currencies pose a challenge for law enforcement agencies, because they can be used to conceal illegal activity.

"A lot of different government officials and federal agencies are trying to wrap their mind around Bitcoin," said Harper, the lobbyist.

Those in the Bitcoin world certainly don't want to be caught by surprise with any new federal rules.

Jeremy Allaire, CEO of Boston-based ! Circle Internet Financial, a Bitcoin exchange startup, has been making frequent trips to Washington meeting with regulators at the U.S. Treasury and lawmakers on Capitol Hill to talk about the virtual money.

He said he "welcomed the decision" by the IRS to tax bitcoin as property as opposed to a currency, because it added a new layer of certainty for companies like his.

The move to beef up the industry's voice in Washington began late last fall, when Sen. Thomas Carper held a hearing on Bitcoin and asked agencies to give Bitcoin companies a clear regulatory road map.

Any new technology, or industry would be smart to educate Washington, said Michael Beckerman, CEO of The Internet Association, a trade group for digital companies like Facebook and Google.

"The consequences if you don't (engage in the process) can be dire. Decisions made on the Hill and by regulators can make or break any industry," Beckerman said.

Companies dealing in bitcoin have been in informal talks with officials at the federal commodities regulatory agency, says CFTC spokesman Steven Adamske. And the BitCoin Foundation and Atlanta-based BitPay, a digital payments processor, have written letters to the election commission urging the regulator to allow bitcoin for payments in political campaigns.

Bitcoin proponents have reason to be concerned about Washington getting too involved. It could threaten users' anonymity, a key characteristic of the currency.

Bitcoin is used to buy merchandise anonymously. Bitcoin is becoming increasingly popular with small businesses because there are no credit card fees.

However, the virtual currency has run into a litany of problems in the last six months.

In October, the FBI shut down Silk Road, the biggest online black market used to market illegal drugs and other items, which used bitcoin for transactions.

Authorities also arrested Charles Shrem, a co-founder and chief executive of a popular bitcoin exch! ange BitI! nstant. Shrem was on the board of the Bitcoin Foundation.

And in February, one of the largest bitcoin exchanges, Mt.Gox, filed for bankruptcy.

Though Bitcoin companies are meeting with Washington players, none of them have registered with the Senate to officially lobby.

  Getting real with the father of virtual reality

Harper said his group hasn't registered because so far the group's activities have been "informational and educational."

"We haven't done so much of it that we need to worry about it," Harper said. "My hope is that we'll be a resource for those who are lobbying, ideally we'll work for them."

Two GM SUVs top new safety ranking

NEW YORK (CNNMoney) General Motors is having a bad year. But the automaker got some good news on Tuesday when two GM SUVs earned top ratings in a new crash test.

The Chevrolet Equinox and the GMC Terrain are the only two vehicles to earn the top rating from the Insurance Institute for Highway Safety, which conducted a challenging crash test on nine popular midsize SUVs.

The test replicates what happens when the front corner of a vehicle collides with another car, or with an object like a tree, at 40 miles per hour. It is more challenging than the institute's traditional frontal crash test and the head-on crash test that's performed by the government, said Russ Rader, senior vice president of communications.

The institute began this kind of test in 2012 after finding that one quarter of serious frontal crashes are caused by "small overlap" impacts, said Rader. It has already conducted the test on other vehicle groups like small cars and compact SUVs, but it is the first time it tested midsize SUVs in this capacity.

The Equinox and Terrain have also been named Top Safety Picks Plus by the institute. That means the vehicles received good ratings on five other tests and are available with a front crash prevention system that alerts drivers of an impending collision.

The designation "speaks to GM's continued focus on improving our vehicles and keeping our customers safe," said Gay Kent, general director of GM's Vehicle Safety and Crashworthiness.

The Toyota Highlander, which received the institute's second-highest rating in the crash test, was also named a Top Safety Picks Plus.

  Mary Barra takes on Washington

The Kia Sorento, Mazda CX-9, and Honda Pilot earned the worst rating in the small overlap crash test, despite doing well on traditional frontal and side impact tests. A statement from Honda said that the Institute named the 2013 Pilot, which has the same body structure as the 2014 model, a top safety pick last year. A Mazda spokeswoman said the CX-9 was designed before the Institute began its new crash test. Kia did not respond a request for comment.

The report comes about a week after GM (G! M, Fortune 500) CEO Mary Barra was grilled on Capitol Hill about the company's botched recall of 2.6 million vehicles for a defect linked to at least 13 deaths. That recall affects smaller cars that GM no longer makes, including the Chevrolet Cobalt and HHR, the Saturn Ion and Sky, and the Pontiac G5 and Solstice.

"When it comes to midsize SUVs, General Motors is showing the way forward," wrote David Zuby, the institute's chief research officer, in the report.