Sunday, June 30, 2013

Men's Wearhouse Wants Millennials

You're not gonna like your forced retirement, George Zimmer. I guarantee it.

The Men's Wearhouse  (NYSE: MW  ) longtime spokesman was unceremoniously let go by the board of the company he founded on Wednesday, shortly before the company's quarterly earnings call. A number of investors -- Zimmer included -- were understandably upset, and shares fell following the announcement.

In the aftermath of that decision, at least one prominent analyst has chimed in to assert that Men's Wearhouse is looking to improve its standing among millennial men, and getting rid of the hirsute sexagenarian was a first step toward that goal. Now, thanks to YouGov's BrandIndex polling, we can see just how the younger consumer views Men's Wearhouse. It's not pretty:


Source: Ted Marzilli, writing for YouGov BrandIndex .

This graph represents the "purchase consideration" of Men's Wearhouse against some of its largest suit-selling competitors, listed as Jos. A. Bank (NASDAQ: JOSB  ) , Macy's (NYSE: M  ) , and Nordstrom (NYSE: JWN  ) , among others. The industry average has been pretty steady, but Men's Wearhouse appears to be wearing thin among millennials (and among male consumers on the bubble between the millennial generation and Generation X). If that's so, then why did Men's Wearhouse report a nice spike in profits in its latest report? Well, older consumers still like the way they look in a Zimmer-promoted suit:


Source: Ted Marzilli, writing for YouGov BrandIndex.

Suit sellers are in a strange bind, because data on millennial clothing spending appears to be a bit contradictory. On one hand, a survey by marketing agency fluent (yes, it spells its name in lowercase), shows that 49% of surveyed college students plan to buy clothes for a job or internship, compared to only 44% who plan to buy casual attire. On the other hand, an MTV survey of millennial workers found that 79% think that they should be able to wear jeans to work, and 93% prefer a job that allows them to dress comfortably. "Work clothes" doesn't have to mean a suit at all anymore -- it could just be a pair of nice jeans and a button-down shirt, which is far more the purview of Macy's and Nordstrom (which both sell upscale jeans) than it is of Men's Wearhouse.

A Fiscal Times survey on millennial spending habits show that millennial men do appreciate some brands that can suit them up -- Ralph Lauren, Banana Republic, and Kenneth Cole all ranked highly. A Spanish branding agency conducted a survey of over 4,200 millennials in over two dozen countries and found that Dolce & Gabbana, Burberry, and Hugo Boss were all popular among younger shoppers. Men's Wearhouse is nowhere to be found. Incidentally, most of these brands can be found at Macy's or Nordstrom, in either the suit section, or elsewhere.

Will firing Zimmer -- and most likely replacing him with a "hipper" spokesman -- yield the millennial-baiting results that Men's Wearhouse's board wants? Probably not. Millennial men may simply be more likely to approach suit buying as a luxury rather than a necessity, which makes Men's Wearhouse's cost-conscious options far less appealing. However, as long as the majority of suit buyers remain older buyers, Men's Wearhouse can coast comfortably along on the modest employment growth occurring from month to month -- people older than 35 have much better employment rates than those in the millennial cohort, anyway. That might not matter now, though, as the company may have shot itself in the foot by ousting a well-known and popular public face without any sensible explanation. When you build a brand around one person, it can be difficult to move on to the next marketing face without a major stumble.

To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

Even Without Payments, Apple's Passbook Is Taking Off

Investors are widely expecting Apple (NASDAQ: AAPL  ) to get into the mobile payments game sooner or later, especially after CEO Tim Cook mentioned that the company now has 575 million active iTunes accounts with credit card information just a click or tap away. That makes its active user base nearly three times that of Amazon.com, the largest e-commerce company in the world.

Passbook in iOS 6. Source: Apple.

Apple's stepping stone until then is Passbook, which aggregates other wallet-related items like gift cards, loyalty cards, and more. Even though Passbook doesn't offer any type of uniform payment method that links to a credit card, the app is already taking off in popularity among retailers and merchants.

GigaOM recently spoke with CashStar marketing exec Gene Cornfield about Passbook's potential. CashStar helps many well-known retailers create digital gift cards, so it has valuable insight into how Passbook is progressing. The company says that approximately 33% of gift cards that are sent are opened on a smartphone, and 66% of these smartphones run iOS 6. Roughly 30% of these gift cards are subsequently added to Passbook.

Cornfield told GigaOM that many retailers were skeptical at first, but eventually warmed up to the idea as users began to understand its value proposition. Using gift cards is currently the best way for users to spend money at retailers, with CashStar saying "millions of dollars" have been processed through Passbook.

The location-based reminders also help users remember to redeem cards once they are near a store. Companies only recognize gift card dollars as revenue once the funds are spent. Reloadable store-specific cards are also helping retailers make payments. I use the Starbucks card in my Passbook all the time to buy coffee, which reloads automatically.

Apple gave no hints of a payments service at WWDC earlier this month, but considering Passbook's early success, this is an important opportunity for the Mac maker. Like most of its services, payments will likely generate negligible operating income and instead will be positioned as a complementary offering that spurs device sales.

Google Wallet has mostly failed to make a dent in the payments market, leaving a wide opening for Apple.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Kindred Healthcare Selling 8 Nursing Centers for $49 Million

Kindred Healthcare (NYSE: KND  ) announced today that it is selling eight nursing centers for around $49 million to privately run Signature Healthcare.

According to the press release, the sale makes sense for Kindred. All eight centers are considered "non-strategic" and are located outside of the corporation's 21 designated Integrated Care Markets. In fiscal 2012, the facilities brought in around $61 million in net profit.

"The transaction with Signature further accelerates our repositioning strategy with the goal of improving our long-term growth, profitability and financial position," said CEO Paul Diaz in a statement today. "Like the Vibra Healthcare transaction announced in April, this tax-efficient transaction allows us to sharpen our focus on our Integrated Care Markets and provides more capital to grow our home health and hospice operations."

Kindred will use the proceeds from this sale to most immediately address $350 million in outstanding balances under the company's $750 million revolving credit facility. In the long term, the company expects to reinvest the proceeds into further acquisitions and/or Kindred's Integrated Care Markets.

3 Reasons to Buy Stock Even Near All-Time Highs

Investing in stocks has been a smart long-term move, but as the market has climbed to successive record highs, many investors have questioned whether it's still smart to buy stock now. Below, you'll find three solid reasons that you should still buy stock even when the market is soaring. Let's take a look at them.

1. Stocks have a better risk-reward ratio than alternatives.
The increased volatility in the stock market in recent weeks has made many stock investors reflexively turn to alternatives in search of a smoother ride for their portfolio. Yet when you take a closer look, you'll see that in this latest episode of market choppiness, stocks have actually been less volatile than some investments that many see as being more secure.

For instance, most investors turn to bonds in times of trouble. In recent months, though, soaring interest rates have soared, pushing bond prices downward much more dramatically than stocks. Major bond ETF iShares Core Total US Bond Market (NYSEMKT: AGG  ) has plunged to 52-week lows in the past week, and some more aggressive bond ETFs have suffered double-digit percentage declines in value just from the thus-far modest run-up in interest rates. With the upside from bonds fairly limited and that level of risk, using new money to buy stock makes more sense for those seeking a more attractive risk-reward proposition.

2. Some stocks will rise or hold up well even in a downturn.
In times of trouble, investors tend to look at the stock market as a cohesive unit. Yet while correlations exist that make stocks tend to trade in tandem, strong companies can withstand or even benefit from the tough conditions that pull the overall market lower, and buying their stock can be profitable as a result.

For instance, five years ago, the financial crisis hit banking stocks hard, but it was the overall recessionary conditions that helped bring the entire market down. Some companies, though, made the most of the recession and gained ground. McDonald's (NYSE: MCD  ) , for instance, benefited from the move away from more expensive casual restaurants, meeting customers' needs with expanded menu offerings that still offered solid value for those who'd moved down from other eating-out options. Similarly, Family Dollar (NYSE: FDO  ) and several other deep-discount retailers poached business from higher-cost alternatives as households cut their budgets.

I'm not saying that McDonald's and Family Dollar will necessarily be winners in the next downturn, because current conditions are much different and each company faces new challenges that could hold them back. But whatever drives the next market correction or bear market, there'll be some industry or company in a position to profit from it, and looking closely at the cause of the correction will yield some good investment ideas.

3. Companies have put measures in place that should help earnings for years to come.
Many concerned investors have pointed to high profit margins as potentially being unsustainable. They argue that as a result, it doesn't make sense to buy stock at current levels and that you should wait to invest until what they see as the inevitable reversion of corporate margins to more historically normal levels.

Yet this analysis ignores the long-term improvements that companies have made to boost profits. Perhaps the most notable is the locking-in of cheap long-term financing, as companies have taken advantage of low interest rates to get the cash they need not just now but well into the future. Some of the largest and most creditworthy companies in the economy, including Microsoft (NASDAQ: MSFT  ) and Wal-Mart (NYSE: WMT  ) , have turned to the debt markets to raise capital not out of need but rather as an opportunistic strategy to minimize their long-term funding costs. Such moves will help keep margins higher even when interest rates rise, as those companies with enough foresight to get long-term financing will reap the benefits for years or even decades to come.

Don't give up
It's understandable to be reluctant to buy stock when the prices are high. But by being discriminating with your purchases and focusing on positioning your overall investment portfolio as well as you can, you'll find that the reasons to buy stock outweigh the reasons to keep your money elsewhere over the long run.

Of course, long-term success often comes with short-term bumps in the road. For instance, after its sterling performance in 2008, McDonald's turned in a dismal year in 2012, underperforming the broader market by 25 percentage points. Looking ahead, can the Golden Arches reclaim its throne atop the restaurant industry, or will this unsettling trend continue? Our top analyst weighs in on McDonald's future in a recent premium report on the company. Click here now to find out whether a buying opportunity has emerged for this global juggernaut.

Tune in every Monday and Wednesday for Dan's columns on retirement, investing, and personal finance. You can follow him on Twitter @DanCaplinger.

Top 5 Promising Companies To Buy For 2014

Investors have always been interested in stocks that pay dividends, but lately, low interest rates on bonds and other fixed-income investments have made solid dividend payers even more valuable. Among the most promising dividend stocks in the market is Hormel Foods (NYSE: HRL  ) , and one big reason is that it is one of the few exclusive companies to make the list of Dividend Aristocrats.

In order to become a member of this elite group, a company must have raised its dividend payouts to shareholders every single year for at least a quarter-century. Only a few dozen stocks manage to make the cut, and those that do tend to stay there for a long time.

Hormel is famous for Spam, but it offers a full line of meat and other food products, ranging from Chi-Chi's salsa and tortillas to Dinty Moore beef stew. Like many consumer-oriented businesses, Hormel has built up a reliable customer base that gives it a dependable and predictable flow of cash that it can then funnel out to shareholders. Let's take a closer look at Hormel to see whether it can sustain its long streak of rewarding dividend payouts to investors.

Top 5 Promising Companies To Buy For 2014: Fleetcor Technologies Inc (FLT)

FleetCor Technologies, Inc. (FleetCor) is an independent global provider of specialized payment products and services to businesses, commercial fleets, oil companies, petroleum marketers and government entities in countries throughout North America, Latin America and Europe. During the year ended December 31, 2011, the Company processed more than 215 million transactions on its networks and third-party networks. The Company operates in two segments: North American and International segments. The Company provides its payment products and services in a variety of combinations to create payment solutions for its customers and partners. In August 2011, the Company acquired Mexican prepaid fuel card and food voucher business based in Mexico City, Mexico. On December 13, 2011, the Company acquired Allstar Business Solutions Limited, a fleet card company based in the United Kingdom. In July 2012, the Company acquired a Russian fuel card company. In July 2012, the Company acquired CTF Technologies, Inc.

The Company uses third-party networks to deliver its payment programs and services. In order to deliver its payment programs and services and process transactions, it owns and operates closed-loop networks through which it electronically connects to merchants and captures, analyzes and reports information. The Company also provides a range of services, such as issuing and processing. The Company markets its payment products directly to a range of commercial fleet customers, including vehicle fleets of all sizes and government fleets. Among these customers, it provides its products and services to small and medium commercial fleets. The Company also manages commercial fleet card programs for oil companies, such as British Petroleum (BP) (including its subsidiary Arco), Chevron and Citgo, and over 800 petroleum marketers.

The Company sells a range of fleet and lodging payment programs directly and indirectly through partners, such as oil companies and petroleum marketers. It provides it! s customers with various card products that function like a charge card to purchase fuel, lodging and related products and services at participating locations. The Company supports these cards with issuing, processing and information services that enable it to manage card accounts, facilitate the routing, authorization, clearing and settlement of transactions. The Company provides these services in a variety of outsourced solutions ranging from an end-to-end solution (consisting issuing, processing and network services) to limited back office processing services.

In addition, the Company offers a telematics solution in Europe that combines global positioning, satellite tracking and other wireless technology to allow fleet operators to monitor the capacity utilization and movement of their vehicles and drivers. The Company offers prepaid fuel and food vouchers and cards in Mexico that may be used as a form of payment in restaurants, grocery stores and gas stations. Approximately 10.4% of its revenue during the year ended December 31, 2011 came from its lodging and telematics products.

During 2011, the Company owns and operates eight closed-loop networks in North America and internationally. Fuelman network is the Company�� primary fleet card network in the United States. Corporate Lodging Consultants network (CLC) is the Company�� lodging network in the United States and Canada. The CLC Lodging network covers more than 17,700 hotels across the United States and Canada. Commercial Fueling Network (CFN) is the Company�� members only unattended fueling location network in the United States and Canada. Keyfuels network is the Company�� primary fleet card network in the United Kingdom.

CCS network is the Company�� primary fleet card network in the Czech Republic and Slovakia. Petrol Plus Region (PPR) network is the Company�� primary fleet card network in Russia, Poland, Ukraine, Belarus, Lithuania, Estonia and Latvia. Mexican network is the Company�� fuel! and food! card and voucher network in Mexico. Allstar network is the Company�� fleet card network in the United Kingdom. In the United States, the Company issues corporate cards that utilize the MasterCard payment network, which includes 176,000 fuel sites and 398,000 maintenance locations across the country. The networks of locations owned by the Company�� oil and petroleum marketer partners in both North America and internationally are utilized to support the card programs of these partners.

UNION TANK Eckstein GmbH & Co. KG (UTA) operates a network of over 46,000 fleet card-accepting locations across 38 countries throughout Europe, including more than 31,000 fueling sites. DKV operates a network of over 45,000 fleet card-accepting locations across 36 countries throughout Europe, including more than 30,500 fueling sites. In Mexico, the Company issues fuel cards and food cards that utilize the Carnet payment network, which includes approximately 8,700 fueling sites and 78,890 food locations across the country.

The Company competes with Wright Express Corporation, Comdata Corporation, U.S. Bank Voyager Fleet Systems Inc., Edenred and Sodexo, Inc.

Advisors' Opinion:
  • [By Ed Carson]

    FleetCor isn't a one-stop financial behemoth. It's more of a truck-stop financial, providing fuel cards and budget management tools for trucking firms and other commercial and government fleets. In its most recent quarter, earnings per share rose 48%, the best gain in seven quarters. Revenue growth accelerated to 39%, the best in 10 quarters.

    Shares have been rising strongly for the past six months. The stock is up nearly 3% so far in 2013, hitting a fresh high intraday on Friday.

Top 5 Promising Companies To Buy For 2014: Bel Fuse Inc.(BELFB)

Bel Fuse Inc., together with its subsidiaries, engages in the design, manufacture, and sale of products used in local area networking, telecommunications, business equipment, and consumer electronic applications in North America, Europe, and Asia. It offers various magnetic products, including MagJack integrated connector modules that provide the signal conditioning, electromagnetic interference suppression, and signal isolation for networking, telecommunications, and broadband applications; diplexer and triplexer filters used in high speed, home networking applications that utilize excess bandwidth available on existing coax cabling; power transformer products comprising standard and custom designs for use in alarm, security, motion control, elevator, and medical products; and discrete magnetic components consisting of transformers and chokes for use in networking, telecommunications, and broadband applications. The company also offers modules, such as power conversion mo dules comprising standard and custom isolated and non-isolated DC-DC converters designed to power low voltage silicon devices; and integrated modules that condition, filter, and isolate the electronic signal to ensure accurate data/voice/video transmission, as well as circuit protection products, including board level fuses and polymeric positive temperature coefficient devices for use in televisions, consumer electronics, power supplies, computers, telephones, and networking equipment. In addition, it provides a line of modular connectors, such as RJ45 and RJ11 passive jacks, plugs, and cable assemblies; and compression interfaces, high speed cables, connectors, and enclosures and harnesses. Bel Fuse Inc. sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors. The company was founded in 1949 and is headquartered in Jersey City, New Jersey.

Hot Undervalued Companies To Watch In Right Now: First Financial Corporation Indiana(THFF)

First Financial Corporation, through its subsidiaries, provides various financial services. Its deposit products include interest-bearing and non-interest-bearing demand deposits, savings accounts, time deposits, and certificates of deposit. The company?s loan portfolio comprises commercial, financial, and agricultural loans; residential loans; and consumer loans. It also provides mortgage lending; lease financing; trust account and depositor services; and insurance services, such as property and casualty insurance, surety bonds, employee benefit plans, life insurance, and annuities. The company operates 54 branches in west-central Indiana and east-central Illinois. First Financial Corporation was founded in 1984 and is headquartered in Terre Haute, Indiana.

Top 5 Promising Companies To Buy For 2014: NTELOS Holdings Corp.(NTLS)

NTELOS Holdings Corp., through its subsidiaries, provides wireless communications services to consumers and businesses primarily in Virginia and West Virginia, as well as parts of Maryland, North Carolina, Pennsylvania, Ohio, and Kentucky. It primarily offers wireless digital personal communications services, such as wireless voice and data products and services, and roaming/travel services under the NTELOS Wireless brand name. The company also provides wholesale network services to Sprint Nextel in the western Virginia and West Virginia area for various Sprint CDMA wireless customers. As of March 6, 2012, its wireless retail business had approximately 415,000 postpay and prepaid subscribers. The company was founded in 1897 and is headquartered in Waynesboro, Virginia.

Top 5 Promising Companies To Buy For 2014: Manitou Gold Inc (MTU.V)

Manitou Gold Inc. engages in the acquisition, exploration, and advancement of gold properties in Canada. It holds interests in various properties located in northwestern Ontario. The company is headquartered in Sudbury, Canada.

Saturday, June 29, 2013

Better Buy: FirstEnergy or Consolidated Edison Stock?

Investors might invest in a good company with solid returns -- but is it the place where their hard-earned profits are best spent? Let's compare big dividend-dealing utilities FirstEnergy (NYSE: FE  ) and Consolidated Edison (NYSE: ED  ) , to see where we should stash our cash.

The earnings
Sales are a good place to start for these two companies, because up until 2011, they were mirror images of each other. But in 2011, FirstEnergy merged with Allegheny Energy, a 1.6 million customer utility that doubled FirstEnergy's "clean coal" capacity. The top line grew accordingly, while Consolidated Edison stock revenue slumped. In the past five years, FirstEnergy sales are up 12.3%, while Con Ed's have taken a 10.3% dip.

FE Revenue Annual Chart

FE Revenue Annual data by YCharts

But where it matters to most to investors, FirstEnergy comes in second for adjusted earnings per share. FirstEnergy's adjusted EPS has fallen a whopping 60% over the past five years, but Consolidated Edison stock adjusted EPS is still in the red at -11.7%. 

FE EPS Diluted Annual Chart

FE EPS Diluted Annual data by YCharts

The dividend
Currently, FirstEnergy shareholders enjoy a 5.9% yield on their shares, a highly respectable rate. But digging deeper, we find that much of that increasing yield has come from a slumping stock price. Consolidated Edison stock offers a still substantial 4.2% yield, and its stock has risen 52% in the same period that FirstEnergy's has fallen 53%.

FE Chart

FE data by YCharts

In absolute terms, FirstEnergy's distributions have stayed flat over the past five years, while Consolidated Edison stock has bumped its dividends up a slight 5.1%.  These dividend stalwarts stand in stark contrast to the likes of Exelon (NYSE: EXC  ) and Atlantic Power (NYSE: AT  ) , both of which went in for a dividend haircut this year.

Exelon dropped its distribution a whopping 40% as it looks to keep in investor credit rating squeaky clean and balance its books. "We have an opportunity to invest in growth," said Exelon CEO Chris Cane during the company's Q4 earning call. "We cannot do that efficiently if we're leaning on a balance sheet to maintain an 80% to 90% payout level."

Atlantic Power sliced a whopping 66% off the top of its own distribution, dismantling its 10.2% dividend yield. However, share prices of Atlantic Power have fallen to the tune of 66% this year, ironically pushing the company's annual estimated yield back up to an unbelievable 17.9%.

While FirstEnergy's share price and yield follow Atlantic's pattern on a slower, less extreme scale, Consolidated Edison stock has slowly grown alongside its steady dividend.

The future
Looking ahead, Consolidated Edison stock is preparing for the future. The company plans to spend $2.4 billion in capital expenditures in 2013, a move that should create lasting improvements. Just last week, it announced a $100 million natural gas infrastructure investment to switch more New Yorkers off fuel oil heating. While $100 million is so small chunk of change, the decision will save Consolidated Edison stock and its customers unnecessary spending down the road.

And while FirstEnergy is making moves of its own, it's currently focusing funds on paying off its burdensome debt load. The company highlighted debt as a top issue for 2013 and has already spent $1.5 billion to drop its competitive business' overexpenditures.

FirstEnergy or Consolidated Edison Stock
For now, at least, FirstEnergy comes in second. Consodilated Edison has proved over the past five years that it has what it takes to slowly and steadily increase value for investors. With a sustainable dividend today and smart spending for tomorrow, Consolidated Edison stock is the better buy.

If you're on the lookout for high-yielding stocks across more sectors than utilities alone, The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here.

Who Ended Up With Jobs In The New Normal?

Who are the victims in the mediocre employment situation? It is not people over 55, women, Hispanics or the educated.

Please note that the graphs below are indexed on the start date of the 2001 recession.

It is a striking statistic that people 55 and up not only did not experience negative employment effects from the Great Recession - but the jobs held by this group pretty much continued to expand at pre-recession trend lines.

Employment in the next age group down (45 to 54) is still contracting long after the end of the Great Recession;Employment levels in age group 35 to 44 have not recovered from the effects of the recession - and the situation remains static for over 3 years;The age groups from 20 to 34 have almost fully recovered to pre-recession levels and are on a growth trend line;And the youngest segment of the population (16 through 19) continues to suffer the worst effects of the recession.

Index of Employment Levels - 55 and up (dark grey line), 45 to 54 (purple line), 35 to 44 (orange line), 25 to 34 (green line), 20 to 24 (red line), and 16 to 19 (blue line)

(click to enlarge)

Women are doing better than men. Could this relate to more women being employed in sectors less affected by economic slowdowns such as health care or education?

Index of Employment Levels - Men (blue line) vs Women (red line)

(click to enlarge)

Mom and Pop concerns' employment is sucking swamp water - and remains at twenty first century lows

(click to enlarge)

The less education one has, the less chance of finding a job. Being educated seems an advantage to having a job. Is it the fact one has a piece of paper? Or just smarter in finding the pathway to employ! ment? Or are those with degrees better prepared for employment? Or more adaptable to employment changes? Perhaps some of all four factors?

Index of Employment Levels - University graduate (blue line), Some college or AA degree (orange line), high school graduates (green line), and high school dropouts (red line)

(click to enlarge)

One significant observation - being white is not helpful for employment. FRED does not have data series for Asians, but the BLS does - and indexed Asian employment levels are similar to Hispanic.

Index of Employment Levels - Hispanic (blue line), African American (red line), and White (green line)

(click to enlarge)

There is only one point I am making in this post: demographics of overall trends in employment have changed.

My normal weekly economic wrap is in my instablog,

Source: Who Ended Up With Jobs In The New Normal?

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. (More...)

Hot Industrial Conglomerate Stocks To Watch For 2014

Industrial conglomerate�Valmont Industries� (NYSE: VMI  ) �will pay a�regular quarterly cash dividend�of $0.25 per share, representing an 11.1% increase in the payout to shareholders.

The payment will be made on July 15 to the holders of record at the close of business on June 28, the company announced Monday.

Valmont has paid a quarterly dividend consistently since 1992, with the just-declared quarterly dividend up from its prior distribution of $0.225. The dividend has increased every year since 2005.

Valmont designs and manufactures poles, towers, and structures for lighting and traffic, wireless communication, and utility markets, industrial access systems, and highway safety barriers. It also provides protective coating services and mechanized irrigation equipment for agriculture.

Hot Industrial Conglomerate Stocks To Watch For 2014: Home Federal Bancorp Inc. of Louisiana(HFBL)

Home Federal Bancorp, Inc. of Louisiana operates as the holding company for Home Federal Bank, which provides financial services to individuals, corporate entities, and other organizations in northwest Louisiana. The company?s deposit products include savings accounts, NOW accounts, money market accounts, and certificate accounts, as well as passbook savings, certificates of deposit, and demand deposit accounts. Its loan portfolio comprises real estate loans, such as one to four family residential loans; commercial-real estate loans; multi-family residential loans; commercial business loans; land loans; construction loans; home equity and second mortgage loans; equity lines of credit; and consumer loans, including loans secured by deposit accounts, automobile loans, and other unsecured loans. The company also offers wealth management services. As of December 7, 2010, it operated through its main office, two branch offices, and one agency office in Shreveport, Louisiana. T he company is based in Shreveport, Louisiana.

Hot Industrial Conglomerate Stocks To Watch For 2014: Manson Creek Resources Ltd. (MCK.V)

Manson Creek Resources Ltd. engages in the acquisition, exploration, and development of mineral properties in Canada. The company primarily explores for gold ores. Its properties include Virgin Arm Gold Property covering 1,047 hectares located to the north of Gander, Newfoundland; Tell project consisting of 1,950 hectares located in the Mayo mining district of the Yukon; and Meridian property, a gold/silver project covering 675 hectares located in British Columbia. The company is headquartered in Calgary, Canada.

Top Dow Dividend Stocks To Invest In Right Now: Nuveen California Select Quality Municipal Fund Inc.(NVC)

Nuveen California Select Quality Municipal Fund, Inc. is a closed-ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is managed by Nuveen Asset Management. It invests in the fixed income markets of California. The fund invests primarily in municipal securities rated Baa/BBB or better. It invests in securities that provide income exempt from federal and California income tax. The fund employs fundamental analysis with bottom-up stock picking approach to create its portfolio. It benchmarks the performance of its portfolio against the S&P California Municipal Bond Index and the S&P National Municipal Bond Index. Nuveen California Select Quality Municipal Fund, Inc. was formed on April 3, 1991 and is domiciled in the United States.

Top 5 India Companies To Invest In Right Now

TASER International (NASDAQ: TASR  ) has landed another large order of its eponymous stun guns. On Tuesday, the Scottsdale, Ariz.-based weapons maker announced that the San Diego Sheriff's Department has ordered 1,200 upgraded X2 "Smart Weapons."

In addition, the Columbus Police Department in Ohio ordered 62 TASER X26Ps and eight X2s. And smaller orders for X2s, X26Ps, and TASER CAM HD recorders -- presumably fewer than 20 units apiece, judging from TASER's past reporting practices -- were received from law enforcement agencies in Alabama, California, Colorado, Indiana, Kentucky, New Mexico, Ohio, Pennsylvania, South Dakota, and Wisconsin.

Financial details of the sales were not disclosed, but at advertised list prices (for those products for which prices are listed), the sum total of the above-listed orders appears to exceed $1.6 million.

Top 5 India Companies To Invest In Right Now: (RELIANCE.NS)

Reliance Industries Limited, together with its subsidiaries, engages in the exploration, development, and production of oil and gas in India and internationally. It also produces and markets petrochemical products, such as polyethylene, polypropylene, polyvinyl chloride, poly butadiene rubber, polyester yarn, polyester fiber, purified terephthalic acid, ethylene glycol, olefins, aromatics, linear alkyl benzene, butadiene, acrylonitrile, caustic soda, and polyethylene terephthalate. In addition, the company involves in refining petroleum products, including liquefied petroleum gas, propylene, naphtha, gasoline, jet/aviation turbine fuel, kerosene, high speed diesel, sulphur, and petroleum coke, as well as engages in lubricants and petroleum retail business. Further, it offers chemicals, such as linear alkyl benzene; and polyester and fiber intermediates, such as paraxylene, purified terephthalic acid, and mono ethylene glycol, as well as staple fiber filament yarns, texturi sed yarns, twisted/dyed yarns, stretch yarns, cotton yarns, hollow fibers, secondary reinforcement products, and polyethylene terephthalate. Additionally, the company produces textiles, such as suitings, shirtings, readymade garments, as well as ready-to-stitch, take away fabrics. It also operates retail stores, including food and grocery specialty stores; mini hypermarkets; hypermarkets; electronics specialty stores; Apple stores; apparel specialty stores; health, wellness, and pharma specialty stores; footwear specialty stores; jewelry specialty stores; convenience shopping; books, music, toys, gifts, kitchen solutions, furniture, furnishing and home ware, and automotive services and products specialty stores, as well as offers transportation fuels, fleet management services, highway hospitality services, and vehicle care services. In addition, the company focuses on SEZ development and telecom/broadband businesses. Reliance Industries Limited was founded in 1966 and is ba sed in Mumbai, India.

Advisors' Opinion:
  • [By Roger]

    The Reliance Group, founded by Dhirubhai H. Ambani is India's largest private sector enterprise. Starting with textiles in the late seventies, Reliance are now into polyester, fiber intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain. Group's annual revenues are in excess of US$ 44 billion.

    The flagship company, Reliance Industries Ltd, is a global Fortune 500 company and is the largest private sector company in India. Reliance industries have grown to giant proportions and if you wish your money to grow likewise, you can invest in Reliance – and your money will be safe.

Top 5 India Companies To Invest In Right Now: (NESTLE.BO)

Nestle India Limited engages in the manufacture and sale of various food products in India and internationally. The company offers milk products and nutrition products, beverages, prepared dishes and cooking aids, and chocolates and confectionery products. Its product line comprises milk cream and cereals, noodles, soluble coffees, and coffee blends and tea. The company provides its products primarily under the NESCAFE, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID, and NESTEA brand names, as well as offers products of daily consumption and use under the NESTLE Milk, NESTLE SLIM Milk, NESTLE Fresh 'n' Natural Dahi, and NESTLE Jeera Raita brand names. The company is headquartered in Gurgaon, India. Nestle India Limited is a subsidiary of Nestle S.A.

Advisors' Opinion:
  • [By Carlson]

    Nestle India continues to fire on all four cylinders and many shareholders in the company have enriched themselves investing in Nestle. The bulk of the company’s shareholding - 62% is held by the Swiss based parent company. Against a paid up equity of Rs 960 m, the reserves and surplus of Nestle India is a whopping Rs 4.9 bn. An EPS of Rs 68 per share (face value Rs 10) is a dream figure.

    A recent study report reveals that Nestle has the largest R&D facility in the global food industry and that Nestle India is a huge beneficiary of this research. With a gross sales turnover of Rs 52 bn in 2009, Nestle will rank as one of the largest FMCG MNCs in India. What better credentials a safe investor would want?

Top Stocks For 2014: Patni Computer Systems Limited(PTI)

Patni Computer Systems Limited, an information technology (IT) services company, provides a range of IT services through integrated onsite and offshore delivery locations. Its services include IT strategies development, system consulting and design, application development, application maintenance and support, packaged software implementation, quality assurance, infrastructure management, business process outsourcing, IT outsourcing, and OSS and BSS systems deployment services. The company offers IT services primarily to customers in insurance, manufacturing, retail, distribution, financial services, communications, media, and utilities industries. It also offers product engineering services, including engineering design and modeling, electronic design, embedded software development, and product lifecycle management for legacy products, as well as testing and migration services for new technologies to clients in electronics, automotive, medical electronics, industrial auto mation, office automation, handheld/mobile device manufacturing, and semiconductor manufacturing industries. The company operates in North America, Europe, India, and Japan, as well as in the rest of the Asia-Pacific region. Patni Computer Systems Limited was incorporated in 1978 and is headquartered in Mumbai, India.

Advisors' Opinion:
  • [By Kennedy]

    Patni Computer Systems Ltd, based in Mumbai, is one of the leading global providers of Information Technology services and business solutions. More than15000 professionals from Patni Computers service clients across diverse industries, from 28 international offices across the Americas, Europe and Asia-Pacific, and 20 Global Delivery Centers in strategic locations across the world.

    Revenues for the quarter ended 31st March 10 stood at US$ 172.3 million (Rs.7,745.4 million). The operating Income for the quarter at US$ 36.2 million (Rs.1,627.0 million) and this is up by 8.7% when compared quarter to quarter.

Top 5 India Companies To Invest In Right Now: (WIPRO.NS)

Wipro Limited provides information technology (IT) products and services, and consumer care and lighting products primarily in India, the United States, and Europe. The IT Services segment provides IT and IT enabled services, including software application development, application maintenance, research and development services for hardware and software design, data center outsourcing services, and business process outsourcing services. The IT Products segment sells a range of personal desktop computers, servers, and notebooks. This segment provides computing, storage, networking, security, and software products. It also acts as a value added reseller of desktops, servers, notebooks, storage products, networking solutions, and packaged software for various brands, as well as delivers hardware, software products, and other related deliverables. This segment serves enterprises in the government, defense, IT and IT-enabled services, telecommunications/telecom service providers , manufacturing, and banking sectors. The Consumer Care and Lighting segment manufactures, distributes, and sells personal care products, baby care products, lighting products, and hydrogenated cooking oils. It provides products in the toilet soaps, toiletries, deodorants, wellness, skincare, and hair care categories; and commercial lighting, office modular furniture, and security solutions. The company also manufactures cylinders and truck hydraulics; distributes hydraulic steering equipment and pumps, motors, and valves for international companies; and provides water solutions business, as well as provides consulting on renewable energy solutions. Wipro Ltd. has a strategic partnership with Red Hat, Inc. Wipro was founded in 1945 and is headquartered in Bangalore, India.

Advisors' Opinion:
  • [By Bill]

    Wipro is headquartered at Bangalore and its core business areas covers infrastructure solutions, consumer care and certain professional and business solutions. The company, for long, was known as one of the largest independent R&D Services provider in the world.

    Highlights of the Results for the Quarter ended March 31, 2010 speak volumes about the company’s splendid performance. IT Services Revenue in constant currency was $1,180 million, with a sequential increase of 4.7%. On a year to year basis, total Revenues were Rs. 69.83 billion ($1.55 billion1), representing an increase of 8% over the same period last year.

Top 5 India Companies To Invest In Right Now: (GLAXO.NS)

GlaxoSmithKline Pharmaceuticals Limited, a research-based healthcare and pharmaceutical company, provides prescription medicines and vaccines in India. Its product portfolio comprises prescription medicines that range across various therapeutic areas, such as anti-infectives, dermatology, gynecology, diabetes, oncology, analgesic, anti-inflammatory, anti-parasitic, gastrointestinal, endocrine, immunosuppressant, nutritional, central nervous system, and cardiovascular and respiratory diseases; and vaccines for the prevention of various diseases, including hepatitis A, hepatitis B, invasive disease caused by H, influenza, chickenpox, diphtheria, pertussis, tetanus, rotavirus, and cervical cancer. The company was founded in 1924 and is based in Mumbai, India. GlaxoSmithKline Pharmaceuticals Limited is a subsidiary of GlaxoSmithKline plc.

Advisors' Opinion:
  • [By Quickel]

    GlaxoSmithKline Pharma or GSK Pharma, the Indian arm of a multinational research-based Pharmaceutical company focused on making prescription medicines and vaccines, - is arguably one of the best and safest Indian Pharma stocks. The company is committed to tackling the three major diseases identified by the World Health Organization - HIV/AIDS, tuberculosis and malaria. With opportunities in India opening up, GSK India is aligning itself with the parent company to realize certain well-set long term goals An investor in GSK Pharma can reap rich dividends without being unduly obssessed with safety factor.

Friday, June 28, 2013

Markets Big Three-Day Run Comes to an End

Before today, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) had been on quite the three-day run during which time, it rose more than 365 points. But, the streak didn't last very long as today, the index lost 114 points, or 0.8%. The other two major indexes didn't perform as poorly: the S&P 500 only lost 0.43%, while the Nasdaq actually gained 0.04% today.

The only major economic data hitting the markets was the University of Michigan's consumer sentiment index, which came in at 84.1, and was higher than economist's expectations of 83, but lower than May's reading of 84.5. The slight drop wasn't likely the macro event that caused the Dow's decline today. That could have been the confusing message investors have been receiving from the members of the Federal Reserve.

Just a week ago, we heard Ben Bernanke discuss the central bank's plans for the future, and how the bond-buying programs would soon begin to wind down, but today, a number of other Fed members discussed with the press how those programs would likely be in place for some time. They also attempted to further explain what the Fed will do. All the information and explanations don't seem to be helping, but simply making investors more confused about the future and, thus, stocks sold off.

This morning, I discussed why IBM, Johnson & Johnson, and Alcoa were all moving lower; now let's take a look at three of the other Dow losers today.

Shares of DuPont (NYSE: DD  ) struggled today despite good news from the Department of Agriculture. It's been reported that farmers planted soybeans and corn in record numbers this year, and 93% and 90%, respectively, of the seeds used for those crops were genetically engineered. As DuPont is one of the largest seed suppliers, this should mean that the company's upcoming earnings and revenue will be higher than in previous years. But, as my Fool Colleague Travis Hoium noted, when this information hit the markets, the futures prices of both crops fell, which could mean that the increased demand may not last. DuPont closed the day lower by 2%.

Shares of Verizon (NYSE: VZ  ) also fell lower on a day when the company and its wireless subscribers were celebrating. The company finished its nationwide rollout of its 4G LTE network today in Parkersburg, W.Va. The network now covers more than 95% of the U.S. population, and encompasses 99% of its 3G network. But, just as Verizon finishes its buildout, rival T-Mobile announced it had purchased more spectrum for its own 4G network from U.S. Cellular. The additional spectrum will allow T-Mobile to expand 4G service to another 29 U.S. cities. While Verizon has a huge head start on the competition, it surely can't sit back and relax. Shares of Verizon fell 1.29% this afternoon.

Lastly, Merck (NYSE: MRK  ) declined 1.76% today on news that the European Medicines Agency authorized two different drugs similar to Merck and Johnson & Johnson's rheumatoid arthritis medication Remicade. While Remicade is J&J's top-selling product, the decision may be more damaging to Merck than J&J. This was the first time that the monoclonal antibodies market was opened up to generic pharmaceutical companies. It had been believed that "large molecule" medicines would be protected even after patents expired, because those producing monoclonal antibodies argue that biosimilars are not identical and carry higher risk for patients. This decision to open the market up to generics will surely hurt the multinational drug manufacturers such as Merck's fellow Dow component Pfizer, and put further pressure on them when their patents expire. 

More foolish insight

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Why Citigroup Is Edging Downward Today

Less then three hours till the closing bell, and Citigroup (NYSE: C  ) is down 0.32% for the day but up 5.71% for the week. The story is similar for the rest of the Big Four banks and for the broader markets, as well. We seem to be at the start of yet another market correction. Let's hope it's a mild one.

Two weeks of tumult
A week and a half ago, Federal Reserve chairman Ben Bernanke announced that quantitative easing might start being tapered back later this year if U.S. economic data continued trending positively. Investors around the world ignored the "might" and the "if" in Bernanke's statement and instead assumed the worst, sending markets crashing last Thursday and Friday. But beginning Monday, U.S. markets came back strongly, until today.

To add gasoline to the global-markets fire, a crackdown on China's shadow-banking sector sparked fears of a credit crunch in China. A hawkish statement by the country's central bank didn't help matters, and the People's Bank of China quickly changed its tune, promising to backstop any Chinese bank experiencing a cash shortfall.

Foolish bottom line
Today's market correction may have been the result of perceived weakness in Europe as well as an uptick in Treasury yields, the latter of which directly affects the bond markets.

You see, Ben Bernanke's announcement didn't just affect equity markets: Commodities markets and the bond markets were thrown into a tizzy as well. And it's bond markets more so than stock markets that can cause existential threats to the economy. In 2008, it was defaulting mortgage-backed securities that touched off the financial crisis, which then sent stock markets crashing.

Speaking of which, it was theorized by many analysts, including yours truly, that the stock market sell-off we saw following Bernanke's statement may have been the popping of a bubble that had formed, fueled by four years of easy Fed money. But now it looks like what was lost has been gained back, and then some in a least two cases:

Citi lost 6.27% last week, and has made back 5.71% so far this week. Bank of America (NYSE: BAC  ) lost 3.78% last week, and has returned 4.94% so far this week. JPMorgan Chase (NYSE: JPM  ) lost 3.35% last week, and has returned 4.87% so far this week.

So if there was a bubble, it's reformed. Or maybe there never was a bubble. But it's hard to make sense of the generally high levels of stock market enthusiasm we've seen over the last six months based on economic data alone. Yes, the country is performing fine: Unemployment is down, and GDP is solid, at least compared to the rest of the world's. But none of the numbers justify the stock market hitting high after high the way it has been.

The Foolish bottom line? The markets are just plain volatile right now. They were before Bernanke's statement and the Chinese banking mini-crisis, and they will continue to be a for a long time to come. Citigroup is riding that wave, along with everyone else. With any luck, today's correction will be a mild one, and investors will continue to hold onto the gains they've made this week. But don't count on it. 

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Apple's Most Useful Social App Isn't From Apple

Are investors giving Yelp (NYSE: YELP  ) its due? After switching from Google's (NASDAQ: GOOG  ) Local app for a week, Fool contributor Tim Beyers isn't so sure.

Yelp comes off as offering the best of Foursquare and Google in a neat package that benefits from sharp improvements in Apple's mapping technology. A new "Nearby" tab for iOS users is particularly helpful, especially when it comes to finding frequently used services in a place you've never been before. Scouring social check-ins can also make it easier to find the right spot fast, Tim says in the following video.

A 68% surge in Yelp's first-quarter revenue speaks to increased advertiser interest. Mobile devices are largely responsible for the gains: 10 million handsets orchestrated 15 million calls to local businesses via Yelp in Q1.

Google, for its part, is battling back by making it easier for users to submit restaurant reviews. That there's a race at all suggests Yelp has found a niche it can exploit. It wouldn't be too surprising to see Apple make a bid to acquire the business outright.

Do you agree? Watch the video to get Tim's full take, and then let us know whether you would buy, sell, or short Yelp stock at current prices.

The best stock to buy now
The Motley Fool's chief investment officer has selected his No. 1 stock for this year, and it isn't Yelp. Curious to know more? Find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to get your copy now.

Top 5 Japanese Stocks To Invest In 2014

There's a trade setting up in a rare "bargain bin" sector...
 
Since its November bottom, the broad market has gained about 22%. That's a few years' worth of gains in a short time. And as my colleague Jeff Clark has pointed out, a lot of stocks are overextended to the upside.
 
But one place we can still search for "bargain bin" value is the uranium sector...
 
For the past six months, I've been writing about the building supply/demand crunch coming in the uranium market.
 
Uranium is the fuel that powers nuclear reactors. Physical uranium and uranium stocks were crushed after the 2011 Japanese nuclear disaster. But over the past year or so, the sector has managed to put in a tradable bottom.

Top 5 Japanese Stocks To Invest In 2014: Elementis(ELM.L)

Elementis plc engages in the manufacture and sale of specialty chemicals worldwide. The company operates in three segments: Specialty Products, Surfactants, and Chromium. The Specialty Products segment provides functional additives for architectural and industrial coatings, oilfield, construction, and personal care sectors. Its products include rheological additives and modifiers, dispersing agents, flow and levelling additives, other specialty additives and resins, organoclays and colourants, defoamers and coalescing agents, wetting and slip agents, and lanolin and other natural oil derivatives. The Surfactants segment manufactures a range of surface active ingredients and products that are used as intermediates in the production of chemical components. This segment serves oilfield production chemicals, pulp and paper, construction chemicals, agro-chemical and animal feed markets, pharmaceutical manufacture, textiles and leather, plastics and resins, household, and resin and polymer emulsification sectors. The Chromium segment offers chromium chemicals, such as sodium dichromate, chromic oxide, chromic acid, and liquid chrome sulphate for leather tanning, metal finishing, chrome pigments, timber treatment, chrome metal alloys, and ceramics/refractory sectors. Elementis plc was founded in 1844 and is headquartered in London, the United Kingdom.

Top 5 Japanese Stocks To Invest In 2014: Counsel Corp Com Npv (CXS.TO)

Counsel Corporation, a financial services company, operates through its individually branded businesses primarily in residential mortgage lending, distressed and surplus capital asset transactions, real estate finance, and private equity investment in North America. The company offers prime residential mortgage financing to financial institutions. It also engages in the acquisition and disposition of distressed and surplus assets, including industrial machinery and equipment, real estate, inventories, accounts receivable, and distressed debt; arranges asset disposition services, such as onsite and Webcast auctions, liquidations, and negotiated sales; and provides equity investments and funding services in the form of debt refinancing for distressed businesses and properties, as well as offers auction and asset advisory services. In addition, the company engages in the management of 8 properties with a gross leasable area of 800,000 square feet, as well as provides real est ate property and asset management services to third parties. Further, it provides custom furniture for the hospitality industry primarily comprising luxury hotel chains. The company was formerly known as Counsel Trustco Corporation and changed its name to Counsel Corporation in May 1986. Counsel Corporation was founded in 1979 and is based in Toronto, Canada.

Top 5 Computer Hardware Stocks To Watch For 2014: Anconia Resources Corp (ARA.V)

Anconia Resources Corp. (Anconia), formerly Citadel Gold Mines Inc., is an exploration-stage company. On June 15, 2011, 2215107 Ontario Inc. (221) completed a reserve takeover (RTO) of Anconia. 221 is a holding an option to acquire a 100% interest in certain mining claims: the ZAC property and the Marce property. In addition to the ZAC and Marce properties, the Company has staked an additional two exploration projects, the RB Property and the ARNI Property. The Marce property is located approximately 18 kilometers Southwest of the ZAC property and consists of four staked claims covering an area of approximately 23.4 square kilometers. The RB property is located approximately 45 kilometres East-South-East of the ZAC claims, and consists of four staked claims covering approximately 41.8 square kilometers. The ARNI property is a Copper Nickel prospect on the shore of Baker Lake approximately 60 kilometers east of the town of Baker Lake.

Top 5 Japanese Stocks To Invest In 2014: American Science and Engineering Inc.(ASEI)

American Science and Engineering, Inc., together with its subsidiaries, develops, manufactures, markets, and sells X-ray inspection and other detection products for detection and security screening solutions in the United States and internationally. It offers cargo inspection systems comprising non-intrusive inspection products, which are primarily used for the screening of trucks, cars, cargo containers, pallets, and air cargo at border crossings, seaports, military bases, airports, and cargo and transportation hubs. The cargo inspection systems include OmniView gantry system, a cargo and vehicle inspection system; Z Portal system, a drive-through inspection system for scanning cargo and vehicles; Z Gantry system, a Z Backscatter inspection system for scanning cars, vans, trucks, and their cargo; Sentry Portal system, a drive through transmission X-ray inspection system; and MobileSearch High-Energy, a mobile inspection system for scanning trucks, cargo containers, and ve hicles. The company also provides Z Backscatter systems, including Z Backscatter Van, a mobile X-ray screening system to produce photo-like images of plastic explosives or other anomalies; and ZBV Military Trailer, a rugged X-ray screening system built on military trailer. In addition, it offers parcel and personnel screening inspection system that comprises Gemini system, a parcel and baggage inspection system; and SmartCheck system, a personnel screening system for screening threats hidden under a person?s clothing. Further, the company provides contract research and development programs for agencies of the United States government; and maintenance, warranty, engineering, and training services. It serves authorities responsible for port and border security, customs agencies, military organizations, high threat commercial and government facilities, aviation security agencies, and law enforcement agencies. The company was founded in 1958 and is headquartered in Billerica, M assachusetts.

Top 5 Japanese Stocks To Invest In 2014: Br.polythene Ind(BPI.L)

British Polythene Industries PLC manufactures and sells polythene products in the United Kingdom, Ireland, Mainland Europe, and North America. It offers silage/haylage films; horticultural films; farm plastic recycling products; and animal feed, pet bedding and pet food, and transit packing products. The company also provides retail supply chain products comprising the Green Sacks, household bags and sacks for resale, back of store solutions, transit and pallet protection films, and LDPE recycled products; and food and drink products, including fresh produce films, bakery product packaging, frozen food films, modified atmosphere packaging, collation shrink films, degradable and biopolymer films, and transit protection films, as well as printing, converting, and lamination films. In addition, it offers janitorial and healthcare products consisting of healthcare bags, refuse sacks, recycling and waste management sacks, and degradable and biodegradable sacks; and waste collec tion and handling products, and degradable and compostable sacks. Further, the company provides construction products, such as structural waterproofing and gas protection membranes, primary protection building products, floor protection products, Plaswood landscaping and outdoor products, and transit protection products, as well as printing, converting, and lamination films for use in building products. Additionally, it offers Plaswood recycled plastic furniture. The company is headquartered in Greenock, the United Kingdom.

Thursday, June 27, 2013

5 of Last Week's Biggest Winners

What's better than momentum? Mo' momentum. Let's take a closer look at five of this past week's biggest scorchers.

Company

June 14

Weekly Gain

CardioNet (NASDAQ: BEAT  )

$5.77

78%

Questcor (NASDAQ: QCOR  )

$46.14

27%

Avanir (NASDAQ: AVNR  )

$4.50

19%

Groupon (NASDAQ: GRPN  )

$7.65

10%

InvenSense (NYSE: INVN  )

$14.65

10%

Source: Barron's.

Let's start with CardioNet. The provider of wireless medical technology in diagnosing and monitoring cardiac arrhythmias struck a three-year deal with UnitedHealth Group that will cover all of CardioNet's monitoring modalities through all of UnitedHealth's affiliates. The insurance reimbursements will be great, but it's also about the validation of CardioNet's business.

Questcor Pharmaceuticals moved higher after acquiring the rights to Novartis' immune drug Synacthen. The drug, which has yet to be approved domestically, is used for the treatment of autoimmune and inflammatory conditions.

Avanir soared after Mizuho initiated coverage of the biotech with a buy rating. Avanir also moved higher earlier this month after the FDA approved an accelerated development pathway for its lead candidate. Shares would have to more than double from here to hit Mizuho's price target of $10.

Groupon also got slapped with a $10 price target. Deutsche Bank analyst Ross Sandler, who earlier had a $6 goal for the stock, sees the daily-deals leader as a major player in the booming mobile space.

Finally we have InvenSense on the move. The company emerged on the scene with its gyroscopes used for motion-tracking devices in video-game systems, but these days the real growth is coming from those same devices making their way into Android and iOS smartphones and tablets. Piper Jaffray put out a positive note on InvenSense, targeting $290 million in revenue this fiscal year, well ahead of the analyst average forecast of $256 million.

A few more winners
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Wednesday, June 26, 2013

CEO Gaffe of the Week: lululemon athletica

Last year, I introduced a weekly series called "CEO Gaffe of the Week." Having come across more than a handful of questionable executive decisions when compiling my list of the worst CEOs of 2011, I thought it could be a learning experience for all of us if I pointed out apparent gaffes as they occur. Trusting your investments begins with trusting the leadership at the top -- and with leaders like these on your side, sometimes you don't need enemies!

This week, we'll turn our attention to the lululemon athletica (NASDAQ: LULU  ) and its soon-to-be-outgoing CEO, Christine Day.

The dunce cap
To say that actions sportswear is a hot-selling item would be nothing short of an understatement. While most apparel retailers have languished with low single-digit growth as consumers struggle with less take-home income in direct relation to higher taxes, Lululemon and its action-sports peers have soared.

Under Armour (NYSE: UA  ) and Nike (NYSE: NKE  ) have been two exceptional beneficiaries of this trend. Under Armour's first-quarter results, for instance, delivered a 27% jump in footwear sales thanks to innovative new running shoe designs. Nike, best known for its shoes made specifically for active individuals, also saw footwear sales jump by double digits in North America and Western Europe in a challenging third quarter.

Lululemon delivered similarly impressive results in its latest quarter when it reported a 21% increase in sales to $346 million and a 9% increase in gross profit.

The quarter, though, could have been so much better if quality-control issues didn't still hang over Lululemon like a gray cloud. In March, some of the company's most loyal customers began to complain about the company's flagship Luon black yoga pants after the sheer fabric wound up being too revealing, eventually leading to a product recall. It's one thing for a company to have a foul-up in its production quality, but the stakes are considerably higher for Lululemon, which requires a pristine public image to sell yoga and exercise apparel that can in many cases go for more than $100 per piece. Consumers won't pay extra if they don't feel they're getting a higher-quality product. They could just as easily make a stop at Target to get something for 10% to 20% of the cost.

In the wake of this product boo-boo, Chief Product Officer Sheree Waterson left the company in April. We also witnessed same-store sales guidance for the second quarter coming in at a sequentially lower growth forecast of just 5% to 7%.

To the corner, Ms. Day...
It might seem a bit unfair to blame Christine Day for the sheer-pants issue when she, as a CEO, has multiple other tasks to worry about in addition to product quality in her stores. However, a CEO is ultimately the person responsible for the success and failure of a company.

Day has done a good job of expanding Lululemon's brick-and-mortar presence, taking the chain from 71 stores to 218 in just five-and-a-half years. However, same-store sales comparisons are beginning to slow and most growth is coming from store expansion rather than organic traffic and sales volume increases.

To add fuel to the fire, Christine Day also announced that she'd be stepping down as CEO of Lululemon as soon as a successor was named, causing Lululemon's share price to dive more than $10. Day's departure was cited as being for "personal reasons," but it can be taken a number of different ways.

First, it could be a signal that growth is in fact slowing and she's running out of answers as to how to reignite the Lululemon engine outside of merely opening new stores. Second, it could be another affirmation that the onus of fault for the Luon yoga pants product recall falls squarely on her shoulders. The timing couldn't be worse for her coming resignation, as investors were going to utilize the bullishness of this report (the company handily topped Wall Street's expectations) to put the product recall safely in the rearview mirror, but now have it back in the forefront again.

We've seen far more foolish acts from CEOs for sure in this series, but it's not often that a simple resignation can bring back bad memories for shareholders and wipe out in excess of $2.2 billion in market share in just three days.

Do you have a CEO you'd like to nominate for this dubious honor? Shoot me an email and a one- or two-sentence description of why your choice deserves next week's nomination, and you just may see your suggestion in the spotlight.

Did Lululemon's ship just set sail?
Lululemon has the potential to grow its sales by 10 times if it can penetrate its other markets like it has in Canada, but the competitive landscape is starting to increase. Can the company fight off larger retailers and ultimately deliver huge profits for savvy investors? The Motley Fool answers these questions and more in its most in-depth Lululemon research available. Thousands have already claimed their own premium ticker coverage; gain instant access to your own by clicking here now.

Facebook Gets an Important "Like"

Last week, UBS analyst Eric Sheridan upgraded his rating on Facebook (NASDAQ: FB  ) from "neutral" to "buy," citing an improved profit outlook for the second half of the year. Driving this upgrade is his belief that the social media giant will further monetize its user base by expanding into more ad markets -- notably video and through Instagram. These moves should help Facebook become more competitive with Google (NASDAQ: GOOG  ) , which currently owns the mobile ad space.

In the video below, Fool.com contributor Doug Ehrman discusses some of the developments at both Facebook and Google, and why this nod for Facebook is so important.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Vonage Says Newly Patented Invention Will Improve Voice Quality in IP-Based Telephony Systems

Telecom company Vonage (NYSE: VG  ) has received a new patent from the U.S. Patent and Trademark Office for its invention in improving Internet Protocol (or IP) phone systems, the company announced Tuesday.

Vonage's patented invention (US Pat. No. 8,472,342) will substantially improve voice quality in in IP-based telephony systems, the company says, and the  technology "dynamically selects the path of the communication based on network conditions at the time of the call." This is Vonage's seventh patent in 2013, and the company currently has nearly 170 U.S. patent applications still pending.

Vonage Chief Legal Officer Kurt Rogers believes the new patent will give Vonage a great advantage in the VoIP industry. "This invention creates important advantages for any VoIP network operator, directly impacting the quality, reliability and user experience of its service."

Vonage was given expedited treatment by the Patent Office, receiving the patent in less than three months. Rogers said the company received an accelerated evaluation because the office recognized "the high value and novelty of this solution," and that the fast treatment "validates the uniqueness of the invention."

link

Hot Trucking Companies To Buy For 2014

There are many countries across the globe that utilize natural gas as transportation fuel. Argentina and Iran are among the world leaders. It is a trend that hasn't really picked up in the U.S. -- until now.

Natural gas is too cheap and too useful to ignore, and it is making inroads in the world of long-distance trucking. In this video, Fool.com contributor Aimee Duffy talks about the efforts of UPS (NYSE: UPS  ) and Wal-Mart (NYSE: WMT  ) �to take advantage of this growing movement.

The movement toward alternative energy is gaining momentum. One potential opportunity in this field is Clean Energy Fuels, which focuses its natural gas efforts primarily on trucking and fleets. It's poised to make a big impact on an essential industry. Learn everything you need to know about Clean Energy Fuels in The Motley Fool's premium research report on the company. Just click here now to claim your copy today.

Hot Trucking Companies To Buy For 2014: Australian Pharmaceutical Ind Ltd (API.AX)

Australian Pharmaceutical Industries Limited engages in the wholesale distribution of pharmaceutical and allied products in Australia. The company distributes pharmaceutical and medical consumable products to hospitals, and provides finance origination and retail services to pharmacists under the Soul Pattinson and Pharmacist brands. It sells various health, beauty, and lifestyle products in the retail industry under the Priceline brand, and operates as a franchisor with approximately 150 Priceline Pharmacy stores. The company also manufactures and owns rights of pharmaceutical medicines and consumer toiletries in New Zealand. Australian Pharmaceutical Industries Limited was founded in 1910 and is based in Camellia, Australia.

Hot Trucking Companies To Buy For 2014: SemiLEDS Corporation(LEDS)

SemiLEDs Corporation engages in the development, manufacture, and sale of light emitting diode (LED) chips and LED components. Its products are used primarily for general lighting applications, including street lights and commercial, industrial, and residential lighting, as well as in backlighting, medical, automotive, and ultra violet (UV) applications. The company markets blue, green, and UV LED chips under the MvpLED brand name primarily to customers in China and Taiwan, as well as in Russia and North America. It sells LED chips to packagers and distributors, who in turn sell to packaging customers. SemiLEDs Corporation was founded in 2005 and is based in Miao-Li County, Taiwan.

Top 10 Net Payout Yield Stocks To Own For 2014: Marvell Technology Group Ltd.(MRVL)

Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone ARM-based microprocessor integrated circuits. It offers mobile and wireless products, including communications processors, applications processors, and standalone wireless products, as well as combination devices, which incorporate wireless, Bluetooth, and FM radio capability. The company also provides storage products comprising tape drive controllers, read channel, hard disk controllers, solid-state drive controllers, hybrid drive controllers, and storage-system products for hard disk drives, tape drive electronics, optical disk drives, solid-state flash drives, hybrid drives, and storage subsystems technology. In addition, it offers networking, such as switching products that enable voice, video, and data traffic to be carried through the network for the enterprise networking, carrier access, and small office/home office/residential n etworking markets; communications controller and embedded processor products; and enterprise transceiver and Ethernet connectivity products. Further, the company provides printing ASIC products; digital video processing products; and power management and green technology products, such as DSP switcher integrated regulators, analog switching regulators, and mixed-signal light-emitting diode drivers. It operates in the United States, Canada, China, Germany, Hong Kong, India, Israel, Italy, Japan, Korea, Malaysia, Netherlands, Singapore, Spain, Sweden, Switzerland, Taiwan, and the United Kingdom. The company was founded in 1995 and is based in Hamilton, Bermuda.

Advisors' Opinion:
  • [By Nelson]

    Nomura Equity Research chip analyst Romit Shah today reiterates a Neutral rating on shares of chip maker Marvell Technology Group (MRVL), though he sounds fairly enthusiastic about the company’s prospects for next year based on the company’s newly unveiled cellular modem device for so-called LTE networks for fourth-generation (4G) wireless.

    Marvell yesterday said that its “PXA1801” is the first single semiconductor to support multiple flavors of LTE (frequency division duplexing and time division duplexing) as well as existing “HSPA+” 3G and 4G networking standards, and the “CDMA” standard used by non-GSM carriers, such as Verizon Communications (VZ), not to mention the “TD-SCDMA” standard that was developed by the China for use on its networks.

    Shah writes that, “Marvell is ahead of competition (ST-Ericsson and Broadcom (BRCM)) in bringing an integrated TD LTE modem to the market and seems to have narrowed the gap with Qualcomm (QCOM) in LTE leadership. In addition, we believe, this product launch would help Marvell in maintaining its leadership in the China’s growing TD-SCDMA opportunity.” The LTE baseband market is expected to rise from 8 million or so units this year to 50 million in 2013, notes Shah, citing Gartner data. That market may be worth $1 billion to $1.5 billion by 2014, he thinks.

    Marvell shares are down 12 cents, or 0.9%, today at $13.38.

  • [By Dave Friedman]

    On 3/31/11 Maverick Capital reported holding 25,919,357 shares with a market value of $403,046,006. This comprised 4.28% of the total portfolio. On 6/30/11, Maverick Capital held 29,710,907 shares with a market value of $438,830,110. This comprised 4.29% of the total portfolio. The net change in shares for this position over the two quarters is 3,791,550. About the company: Marvell Technology Group Ltd. designs, develops, and markets integrated circuits for communications-related markets. The Company’s products provide the interface between analog signals and the digital information used in computing and communications systems. Marvell’s technology is applied to the broadband data communications market.

Hot Trucking Companies To Buy For 2014: Vivo Participacoes S.A.(VIV)

Telecomunicacoes de Sao Paulo S.A.-TELESP provides fixed-line telecommunications services to residential and commercial customers in the state of Sao Paulo, Brazil. Its services include local voice services, such as activation, monthly subscription, measured service, and public telephones; intraregional, interregional, and international long-distance voice services; data services comprising broadband services; pay TV services through direct to home satellite technology and land based wireless technology multichannel multipoint distribution service; and network services, such as interconnection and rental of facilities, as well as other services consisting of extended maintenance, caller identification, voice mail, cell phone blockers, computer support, and antivirus for Internet service subscribers. The company also offers multimedia communication services, such as audio, data, voice and other sounds, images, and texts and other information. In addition, it provides interc onnection services to cellular service providers and other fixed telecommunications companies through the use of its network. Further, the company offers telecommunications solutions and IT support designed to address the needs and requirements of companies operating various types of industries, including retail, manufacturing, services, financial institutions, and government. Telecomunicacoes de Sao Paulo S.A.-TELESP provides its products and services through person-to-person sales, telesales, indirect channels, Internet, and door-to-door sales. As of December 31, 2010, its telephone network included 11.3 million fixed lines in service, including residential, commercial, and public telephone lines; 3.3 million broadband clients; and 0.5 million pay TV clients. The company was founded in 1998 and is headquartered in Sao Paulo, Brazil. Telecomunicacoes de Sao Paulo S.A.-TELESP is a subsidiary of Telefonica S.A.

Advisors' Opinion:
  • [By Kennedy]

    Vivo Participacoes (VIV) is acting within the wireless communications industry. The company has a market capitalization of $34.3 billion, generates revenues in an amount of $9.9 billion and a net income of $1.5 billion. It follows P/E ratio is 10.4 and forward price to earnings ratio 10.4, Price/Sales 3.5 and Price/Book ratio 2.4. Dividend Yield: 11.8 percent. The return on equity amounts to 21.6 percent.

Why Isn't the Dow Bouncing Back More?

On countless occasions during the past four years, the stock market has responded to substantial short-term drops by recovering all of its losses in fairly short order. Yet when you look at what happened this morning, you get a troubling sign that the trend toward immediate gratification might finally have reversed itself. After climbing as much as 100 points, the Dow Jones Industrials (DJINDICES: ^DJI  ) gave up much of those gains despite comments from St. Louis Fed President James Bullard that explained his dissent in Wednesday's Fed decision. Yet rather than appeasing investors by making it clear that the Fed is considering both sides of the monetary-policy debate, the comments only added to concerns about how the Fed can address disparate views among policymakers. At 10:50 a.m. EDT, the Dow was up about 33 points.

One problem holding the Dow back from a recovery involves renewed concerns about long-running scandals. For instance, Bank of America (NYSE: BAC  ) leads the Dow's decliners with a 2.7% drop as banking regulators consider doubling the minimum capital requirements for it and several other large banks. The move could force B of A, Citigroup (NYSE: C  ) , and JPMorgan Chase (NYSE: JPM  ) to stop paying dividends until their capital reserves rise enough to meet the new standards. Further, given reports that one investigator has found that mortgage-servicing companies have provided inaccurate information to the financial institutions that act as trustees for mortgage-bond investors, banks that have already suffered greatly from billions of dollars in lawsuit settlements could potentially see further hits. Citigroup has fallen the most of the three, down 3.6%, while JPMorgan's loss is minimal at 0.8%.

On the other side of the coin, though, is strong performance from consumer stocks. Procter & Gamble (NYSE: PG  ) is leading the Dow upward with gains of about 2%. After confounding conservative investors who had hoped the stock would provide better protection against downturns than it has, P&G is finally seeing its valuation return closer to levels at which defensive investors can feel more confident of their beneficial traits in resisting downturns. Consumers aren't nearly as quick to respond to changing economic conditions as the stock market is, so investors can expect consumer-facing companies to hold up well so long as their customers don't lose their own optimism about the economic recovery.

The Dow's failure to bounce back more convincingly after a two-day, 550-point drop is troubling to short-term traders who look for greater conviction after steep losses. But for long-term investors seeking better investing opportunities, the best news in the world would be further stock market losses, even in the face of improving fundamentals for promising companies.

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Tuesday, June 25, 2013

How the Dow Bounced Back

After yesterday's shellacking, stocks bounced back strongly today on some bullish economic reports, and the Dow Jones Industrial Average (DJINDICES: ^DJI  ) gained 100 points, or 0.7%, to finish at 14,760. Among the reports pushing equities higher today was May durable-goods orders, which jumped 3.6% on expectations of 3%, and orders outside of transportation grew when a drop was anticipated. Also, consumer confidence levels this month jumped to 81.4, well ahead of estimates at 75.0, and housing reports topped predictions as new home sales and the Case-Shiller 20-City Index were both better than expected.

Investors were also encouraged by the easing in the Chinese credit crisis, as the People's Bank of China said it would provide cash to lending institutions as needed. The Shanghai Composite had been down 5% again at one point again last night, but it recovered on the announcement to finish nearly unchanged.

Bank of America (NYSE: BAC  ) , which was the Dow's biggest loser yesterday, today led the index, gaining back all of Monday's losses to finish up 3%. The reason for today's gains was essentially the mirror image of yesterday's losses, as B of A, heavily involved in mortgages, was encouraged by improvements in the housing market. The announcement by the People's Bank of China also favors the lender, as it will keep China's cash crunch from spreading beyond its borders. Treasury yields increased again today, however, which could threaten the housing recovery by sending mortgage rates higher.

Verizon (NYSE: VZ  ) was also a big winner today, moving up 2.7%. Last night, Verizon won the dismissal of a lawsuit last night that could have blocked an arrangement it made to shed $7.4 billion in pension obligations. In a separate item, rival Sprint Nextel approved the majority takeover by Japan's Softbank, which could bring added firepower to the nation's No. 3 wireless carrier, challenging Verizon.

Finally, UnitedHealth Group (NYSE: UNH  ) was the worst performer on the blue chips, a day after being one of the few gainers. There was no specific news out on the insurance giant, but the stock has been unusually volatile of late, as investors continue to surmise what effect Obamacare will have on UnitedHealth and the greater insurance industry. UnitedHealth has been sluggish to enter the state-based exchanges, a decision that could cause it to lose a competitive edge against the likes of Blue Cross/Blue Shield, which plans to enter nearly every exchange, as well as also causing to losing sway with the White House.

As UnitedHealth's recent swings indicate, Obamacare will undoubtedly have far-reaching effects. The Motley Fool's new free report "Everything You Need to Know About Obamacare" lets you know how your health insurance, your taxes, and your portfolio could be affected. Click here to read more. 

Best Airline Stocks To Own For 2014

European plane maker and EADS (NASDAQOTH: EADSF  ) subsidiary Airbus announced Monday that one of its biggest, and most expensive planes, has just secured a big place in the airplane lineup at British Airways (BA).

International Airline Group (IAG), the parent company of BA, has signed a memorandum of understanding that lays the groundwork for the purchase of 18 Airbus A350-1000 airliners, and options to buy 18 more. If all planes contemplated by this document are ultimately purchased, it could mean as much as $12 billion in new revenues for Airbus at list prices, which are almost never the price paid.

The deal could grow even bigger, though. IAG is the parent company of both BA and Spanish carrier Iberia. And, according to the Airbus press release, IAG is also interested in buying A350s for Iberia once Iberia is "in a position to grow profitably, having restructured and reduced its cost base."

Best Airline Stocks To Own For 2014: JetBlue Airways Corporation(JBLU)

JetBlue Airways Corporation provides passenger air transportation services in the United States. As of December 31, 2011, it operated approximately 700 daily flights to 70 destinations in 22 states, Puerto Rico, and Mexico; and 12 countries in the Caribbean and Latin America through a fleet of 120 Airbus A320 aircraft and 49 EMBRAER 190 aircraft. The company, through its subsidiary, LiveTV, LLC, provides in-flight entertainment, voice communication, and data connectivity systems and services for commercial and general aviation aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service, and cabin surveillance systems. JetBlue Airways Corporation was founded in 1998 and is based in Forest Hills, New York.

Best Airline Stocks To Own For 2014: Latam Airlines Group SA (LFL)

LAN Airlines S.A. (LAN), incorporated in 1983, is the international and domestic passenger airline in Latin America and the cargo operator in the region. As of February 9, 2012, LAN and its affiliates provided domestic and international passenger services in Chile, Peru, Ecuador, Argentina and Colombia and cargo operations through the use of belly space on its passenger flights and cargo freighter aircraft through its cargo airlines in Chile, Brazil, Colombia and Mexico. LAN and its affiliates offered passenger flights to 15 destinations in Chile, 59 destinations in other South American countries, 15 destinations in other Latin American countries and the Caribbean, five destinations in the United States, two destinations in Europe and four destinations in the South Pacific and, through various codeshare agreements, service to 25 additional destinations in North America, 16 additional destinations in Europe, 27 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia, as of February 9, 2012. LAN and its affiliates provide cargo service to all of their passenger destinations and to 20 additional destinations served only by freighter aircraft. LAN also offers other services, such as ground handling, courier, logistics and maintenance. LAN and its affiliates operated a fleet, with 135 passenger aircraft and 14 cargo aircraft as of December 31, 2011. On February 15, 2011, Lan Pax Group S.A., subsidiary of Lan Airlines S.A. acquired 100% of Colombian society AEROASIS S.A.

LAN is primarily involved in the transportation of passengers and cargo. Its operations are carried out principally by Lan Airlines and also by a number of different subsidiaries. As of February 28, 2011, in the passenger business the Company operated through six main airlines: Lan Airlines, Transporte Aereo S.A. (which does business under the name Lan Express), Lan Peru S.A. (Lan Peru), Aerolane Lineas Aereas Nacionales del Ecuador S.A. (Lan Ecuador), Lan Argentina S.A. (Lan ! Argentina, previously Aero 2000 S.A.) and the Aerovias de Integracion Regional, Aires S.A. (Aires). As of February 28, 2011, the Company held a 99.9% interest in Lan Express through direct and indirect interests, a 70.0% interest in Lan Peru through direct and indirect interests, a 71.9% indirect interest in Lan Ecuador, a 99.0% indirect interest in Lan Argentina and a 94.99% indirect interest in Aires (a Colombian entity which was acquired on November 26, 2010). Its cargo operations are carried out by a number of companies, including Lan Airlines and Lan Cargo. As of February 28, 2011, the Company held a 69.2% interest in Aero Transportes Mas de Carga S.A. de C.V. (MasAir), through direct and indirect participations, a 73.3% interest in ABSA through direct and indirect participations, and a 90.0% interest in LANCO through direct and indirect participations. In the cargo business, the Company markets itself primarily under the Lan Cargo brand. In addition to its air transportation activities, the Company provides a series of ancillary services. It offers handling services, courier services and logistics, small package and express door-to-door services through Lan Airlines and various subsidiaries.

Passenger Operations

As of February 28, 2011, the Company operated passenger airlines in Chile, Peru, Ecuador, Argentina and Colombia. As of February 28, 2011, our passenger operations were performed through airlines in Chile, Peru, Ecuador, Argentina and Colombia where we operate both domestic and international services. As of February 28, 2011, the Company�� network consisted of 15 destinations in Chile, 14 destinations in Peru, four destinations in Ecuador, 14 destinations in Argentina, 24 destinations in Colombia, 14 destinations in other Latin American countries and the Caribbean, five destinations in the United States, one destination in Canada, three destinations in Europe and four destinations in the South Pacific. Within Latin America, it has routes to and from Argentina, B! olivia, B! razil, Chile, Colombia, Cuba, the Dominican Republic, Ecuador, Mexico, Peru, Uruguay and Venezuela. The Company also flies to a variety of international destinations outside Latin America, including Auckland, Fort Lauderdale, Frankfurt, Los Angeles, Madrid, Miami, Mount Pleasant (Falkland Islands), New York, Toronto, Papeete (Tahiti), Paris, San Francisco, and Sydney. In addition, as of February 28, 2011, through its various code-share agreements, the Company offered service to 25 additional destinations in North America, 16 additional destinations in Europe, 25 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia. As of February 28, 2011, the Company operated scheduled international services from Chile, Peru, Ecuador and Argentina through Lan Airlines; Lan Express in Chile; Lan Peru in Peru; Lan Ecuador in Ecuador; Lan Argentina in Argentina and Aires in Colombia. Its international network combines the Company�� Chilean, Peruvian, Ecuadorian, Argentinean and Colombian affiliates. It provides long-haul services out of its four main hubs in Santiago, Lima, Guayaquil and Buenos Aires. It also provides regional services from Chile, Peru, Ecuador and Argentina.

Cargo Operations

The Company�� cargo business operates on the same network used by the passenger airlines business, which is supplemented by freighter-only operations. The Company carries cargo for a variety of customers, including other international air carriers, freight-forwarding companies, export oriented companies and individual consumers. As of February 28, 2011, the Company operated a fleet of 140 aircraft, comprised of 126 passenger aircraft and 14 cargo aircraft.

The Company competes with UPS, FedEx, Centurion, Transportes Aereos Mercantiles Panamericanos S.A., Polar Air, Cargolux, Lufthansa Cargo, Martinair and Air France-KLM.

Hot Bank Companies To Invest In 2014: Delta Air Lines Inc (DAL)

Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company�� route network gives it a presence in every domestic and international market. Delta�� route network is centered around the hub system it operate at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Each of these hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to domestic and international cities and to other hubs. The Company�� network is supported by a fleet of aircraft that is varied in terms of size and capabilities.

Delta has bilateral and multilateral marketing alliances with foreign airlines to improve its access to international markets. These arrangements can include code-sharing, reciprocal frequent flyer program benefits, shared or reciprocal access to passenger lounges, joint promotions, common use of airport gates and ticket counters, ticket office co-location, and other marketing agreements. Its international code-sharing agreements enable it to market and sell seats to an expanded number of international destinations. The Company has international codeshare arrangements with Aeromexico, Air France, Air Nigeria, Alitalia, Aeroflot, China Airlines, China Eastern, China Southern, CSA Czech Airlines, KLM Royal Dutch Airlines, Korean Air, Olympic Air, Royal Air Maroc, VRG Linhas Aereas (operating as GOL), Vietnam Airlines, Virgin Australia and WestJet Airlines.

In addition to the Company�� marketing alliance agreements with individual foreign airlines, it is a member of the SkyTeam airline alliance. Delta also has frequent flyer and reciprocal lounge agreements with Hawaiian Airlines, and codesharing agreements with American Eagle Airlines (American Eagle) and Hawaiian Airlines. It has air service agreements with multiple do! mestic regional air carriers that feed traffic to its route system by serving passengers primarily in small-and medium-sized cities.

Through the Company�� regional carrier program, it has contractual arrangements with 10 regional carriers to operate regional jet and, in certain cases, turbo-prop aircraft using its DL designator code. In addition to Delta�� wholly owned subsidiary, Comair, it has contractual arrangements with ExpressJet Airlines, Inc. and SkyWest Airlines, Inc., both subsidiaries of SkyWest, Inc.; Chautauqua Airlines, Inc. and Shuttle America Corporation, both subsidiaries of Republic Airways Holdings, Inc.; Pinnacle Airlines, Inc. and Mesaba Aviation, Inc. (Mesaba), both subsidiaries of Pinnacle Airlines Corp. (Pinnacle); Compass Airlines, Inc. (Compass) and GoJet Airlines, LLC, both subsidiaries of Trans States Holdings, Inc. (Trans States), and American Eagle.

The Company�� SkyMiles program allows program members to earn mileage for travel awards by flying on Delta, Delta�� regional carriers and other participating airlines. Mileage credit may also be earned by using certain services offered by program participants, such as credit card companies, hotels and car rental agencies. In addition, individuals and companies may purchase mileage credits. The Company reserves the right to terminate the program with six months advance notice, and to change the program�� terms and conditions at any time without notice.

SkyMiles program mileage credits can be redeemed for air travel on Delta and participating airlines, for membership in the Company�� Delta Sky Clubs and for other program participant awards. Mileage credits are subject to certain transfer restrictions and travel awards are subject to capacity controlled seating. During the year ended December 31, 2011, program members redeemed more than 275 billion miles in the SkyMiles program for more than 12 million award redemptions. During 2011, 8.2% of revenue miles flown on Delta were from a! ward trav! el.

The Company generates cargo revenues in domestic and international markets through the use of cargo space on regularly scheduled passenger aircraft. Delta is a member of SkyTeam Cargo, an airline cargo alliance. SkyTeam Cargo offers a network spanning six continents and provides customers an international product line.

The Company has several other businesses arising from its airline operations, including aircraft maintenance, repair and overhaul (MRO); staffing services for third parties; vacation wholesale operations, and its private jet operations. Delta�� MRO operation, known as Delta TechOps, is an airline MRO in North America. In addition to providing maintenance and engineering support for its fleet of approximately 775 aircraft, Delta TechOps serves more than 150 aviation and airline customers. Its staffing services business, Delta Global Services, provides staffing services, professional security, training services and aviation solutions to approximately 150 customers. The Company�� vacation wholesale business, MLT Vacations, is the provider of vacation packages in the United States. Its private jet operations, Delta Private Jets, provides aircraft charters, aircraft management and programs allowing members to purchase flight time by the hour.

The Company competes with SkyTeam, United Air Lines, Continental Airlines, Lufthansa German Airlines, Air Canada, American Airlines, British Airways and Qantas.

Best Airline Stocks To Own For 2014: Southwest Airlines Co (LUV)

Southwest Airlines Co., incorporated on March 9, 1967, operates Southwest Airlines, a passenger airline, which provides scheduled air transportation in the United States. As of December 31, 2011, the Company was serving 72 cities in 37 states throughout the United States. During the year ended December 31, 2011, the Company added addition services in two new states and three new cities: Charleston, South Carolina; Greenville-Spartanburg, South Carolina; and Newark, New Jersey. Southwest provides point-to-point. On May 2, 2011, the Company acquired AirTran Holdings, Inc. (AirTran).

AirTran�� route system provides hub-and-spoke, rather than point-to-point, service, with approximately half of AirTran�� flights originating or terminating at its hub in Atlanta, Georgia. AirTran also serves a range of markets with non-stop service from bases of operation in Baltimore, Maryland; Milwaukee, Wisconsin; and Orlando, Florida. As of December 31, 2011, AirTran was serving 68 United States and near-international destinations, including San Juan, Puerto Rico; Cancun, Mexico; Montego Bay, Jamaica; Nassau, The Bahamas; Oranjestad, Aruba; Punta Cana, Dominican Republic, and Bermuda. As of January 31, 2012, AirTran served 65 destinations. During 2011, approximately 71% of Southwest�� customers flew non-stop, and Southwest�� average aircraft trip stage length was 664 miles with an average duration of approximately 1.8 hours.

As of December 31, 2011, Southwest offered 25 weekday roundtrips from Dallas Love Field to Houston Hobby, 13 weekday roundtrips from Phoenix to Las Vegas, 13 weekday roundtrips from Burbank to Oakland, and 12 weekday roundtrips from Los Angeles International to Oakland. Southwest offers connecting service opportunities from over 60 Southwest cities to different Volaris airports in Mexico including Aguascalientes, Guadalajara, Mexico City (MEX), Mexico City-Toluca (TLC), Morelia, and Zacatecas. The Company�� International Connect portal conducts two separate transac! tions: one with Southwest�� reservation system and one with Volaris�� reservation system.

Southwest bundles fares into three categories: Wanna Get Away, Anytime, and Business Select. Wanna Get Away fares are lowest fares. Business Select fares are refundable and changeable, and funds may be applied toward future travel on Southwest. Business Select fares also include additional perks, such as priority boarding, a frequent flyer point multiplier, priority security and ticket counter access in select airports, and one complimentary adult beverage coupon for the day of travel. The Company�� Internet Website, southwest.com, is the avenue for Southwest Customers to purchase tickets online. During 2011, southwest.com accounted for approximately 78% of all Southwest bookings. During 2011, approximately 84% of Southwest�� Passenger revenues came through its Website, including revenues from SWABIZ, the Company�� business travel reservation Web page.

Best Airline Stocks To Own For 2014: Copa Holdings SA (CPA)

Copa Holdings, S.A. (Copa Holdings), incorporated on May 06, 1998, is a Latin American provider of airline passenger and cargo service through its two principal operating subsidiaries, Copa Airlines and Copa Colombia. Copa Airlines operates from its position in the Republic of Panama, and Copa Colombia provides service within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica, complemented with service within Colombia. As of December 31, 2012, the Company operated a fleet of 83 aircraft with an average age of 5.13 years; consisting of 57 modern Boeing 737-Next Generation aircraft and 26 Embraer 190 aircraft. . As of December 31, 2012, the Company offers approximately 334 daily scheduled flights among 64 destinations in 29 countries in North, Central and South America and the Caribbean, mainly from its Panama City Hub.

Copa provides passengers with access to flights to more than 150 other destinations through codeshare arrangements with UAL pursuant to which each airline places its name and flight designation code on the other�� flights. As of December 31, 2012, Copa had firm orders, including purchase and lease commitments, for 35 additional Boeing 737-Next Generation aircraft. Copa also has options for an additional 14 Boeing 737-Next Generation aircraft.

The Company competes with Avianca-Taca, American Airlines, Delta Air Lines, American Airlines and LAN Group.

Advisors' Opinion:
  • [By Kathy Kristof]

    Headquarters: Panama City, Panama

    52-Week High: $85.25

    52-Week Low: $57.03

    Annual Sales: $1.8 bill.

    Projected Earnings Growth: 18% annually over the next five years 


    U.S. airlines have to scratch and claw for every penny of profit they earn. Not so for Panama City-based Copa Holdings, says Bob McAdoo, airline analyst with Imperial Capital, a Los Angeles investment firm. With a hub in the Southern Hemisphere’s cross-roads, Copa has few direct rivals. That has allowed Copa to charge premium prices for its flights and register operating profit margins of 15% to 20% year after year. As economies in Brazil and the rest of Latin America continue to expand, Copa is likely to benefit because it gives travelers the most convenient way to hop around the hemisphere. 

    Copa’s big advantage lies in the setup of Panama City’s airport, explains McAdoo. Panama knows that it’s a crossroads, so it treats connecting passengers as though they’re hopping on a domestic flight – no trip through customs unless you leave the airport. That saves time, and potentially the need to get a visa for a country you’re just passing through, making the airport the ideal hub for business travelers in a hurry.

Best Airline Stocks To Own For 2014: United Continental Holdings Inc.(UAL)

United Continental Holdings, Inc., through its subsidiaries, engages in the provision of passenger and cargo air transportation services. As of February 24, 2011, it operated a total of approximately 5,675 flights a day to 372 airports on 6 continents from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, and Tokyo, as well as in Washington, D.C. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. on October 1, 2010. United Continental Holdings, Inc. was founded in 1934 and is headquartered in Chicago, Illinois.

Advisors' Opinion:
  • [By Admin]  

    United Continental Holdings provides passenger and cargo air transportation services. UAL recently traded at $17.3 and lost 15.8% during the past 12 months. The stock has a market cap of $5.7 billion, P/E ratio of 12.5 and forward P/E ratio of 3.5. The stock has total debt/equity ratio of 7 and Beta of 1.04.