Tuesday, December 31, 2013

Amazon’s $1 Item Black Friday Sale

While J.C. Penney (NYSE: JCP) and Walmart (NYSE: WMT) have run ads in newspapers and online around the country to get shoppers through their doors in a desperate attempt to take market share from one another during what has promises to be a mediocre holiday season, the executives at Amazon (NASDAQ: AMZN) have posted their Thanksgiving and Black Friday specials online. The huge traffic to Amazon.com and emails to existing customers will be their path to holiday revenue. And, one of the most powerful inducements they have is items priced under $1.

Among these products are one Pack of “Shocking Gum, Funny Shock Gag (Random Color)” for $.97 which is much less than gum bought in a store. For people with nothing to read, for $.99 for Kindle owners, “1st Chance” by Elizabeth Nelson. How can Amazon sell used versions of 1-25 Dot-to-Dots (A Get Ready Book, Ages 4-6) for $.01. Shipping must be extra. Used versions of “Butterfly Notebook” by Sovak also cost only $.01.  Also for children, for free,  “4 Pics 1 Word Puzzle by Epic Pixel”.

Among the other less than $1 deals are those special for people who subscribe to the Amazon Prime service for $79 a year. Perhaps the best deal is for “Betas Season 1″ in HD which is free.

Some people cannot afford an Apple (NASDAQ: AAPL) iPad, but Amazon has a deal for them anyway. For only $.99, “Hard Case Cover for iPod Touch 4″ by One Direction. Maybe next year some of these customers can afford the tablet itself.

Finally, for people who have a stereo but no wires, the “Hosa CMP159 Stereo Breakout, 3.5 mm TRS to Dual 1/4 in TS, 10-Feet” by Hosa.

Why waste gas and go out into the cold to brave thousand of people in malls where parking is scares, when at Amazon, many items are almost free.

 

 

Monday, December 30, 2013

Treasurys gain on Fed policy expectations

NEW YORK (MarketWatch) — Treasury prices climbed on Monday, extending gains from last week as the bond market refined its expectations of an accommodative monetary policy under President Obama's nominee to take over the Federal Reserve.

Janet Yellen, currently the vice chairwoman of the Fed, appeared before the Senate Banking Committee last week as she sought confirmation to lead the central bank. After she defended the Fed's $85 billion in monthly bond buying, the market began to expect a later time-frame for scaling back the pace of purchases.

Bloomberg Enlarge Image Charles Plosser, president and chief executive officer of the Federal Reserve Bank of Philadelphia, speaks Monday

The benchmark 10-year note (10_YEAR)  yield, which moves inversely to price, fell 3.5 basis points to 2.668%, following a drop of roughly 3.5 basis points last week.

The 30-year bond (30_YEAR)  yield fell 4 basis points to 3.757%, while the 5-year note (5_YEAR) yield fell 4 basis points to 1.312%.

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"This is a continuation of what Yellen was saying last week," said Matt Duch, portfolio manager at Calvert Investments. "She came out and sounded a lot like Chairman [Ben] Bernanke, saying the data is not good enough yet."

Alongside the testimony from Yellen, the market has been bolstered by suggestions that the Fed could lower the unemployment rate threshold that could trigger a hike to the central bank's policy rate. Dropping the threshold as part of its so-called forward guidance would imply that short-term interest rates would stay lower for longer.

The market is becoming more comfortable with separating the Fed's policy tools and recognizing that the so-called tapering of bond purchases does not equate to hiking short-term interest rates, according to Gene Tannuzzo, senior portfolio manager at Columbia Management.

"Interest rates are near fair value here for the time being," he said, adding that the long end of the yield curve has built in a healthy amount of term premium while still maintaining expectations that the Fed's policy rate will stay low.

The Fed has said that changes to monetary policy depend on economic indicators, and data skewed to the negative side on Monday. The National Association of Home Builders/Wells Fargo housing-market index, a gauge of home-builder confidence, had an unchanged reading at 54 in October. Though a reading above 50 indicates general optimism, Wall Street economists had forecast a reading of 55.

Click to Play Japan's economic zones a work in progress

New process aims to sideline vested interests, allow deeper reforms in special economic zones, says government adviser.

A number of Fed officials spoke Monday. New York Fed President William Dudley said in a speech at Queens College that he is becoming more optimistic about the pace of the U.S. economic recovery. "I believe a good case can be made that the pace of growth will pick up some in 2014 and then somewhat more in 2015," Dudley said.

Philadelphia Fed President Charles Plosser said it's time to end the Fed's asset-purchase program.

Federal Reserve Bank of Boston President Eric Rosengren spoke about how international banks that have large broker-dealer businesses pose a risk to financial stability if they don't hold capital as a buffer against risk, according to news reports.

The Treasury Department released international capital data on Monday, which showed that net foreign purchases of long-term U.S. securities totaled $25.5 billion in September, a rebound from the previous month.

Data on tap later this week include retail sales, consumer prices, and existing home sales, all due out Wednesday. The Federal Open Market Committee will also release the minutes from its October meeting on Wednesday.

The Treasurys Department will sell $13 billion of 10-year Treasury inflation-protected securities on Thursday at a time when many investors continue to shun the asset class.

Sunday, December 29, 2013

10 Best Casino Stocks To Watch Right Now

Nati Harnik/APBerkshire Hathaway CEO Warren Buffett. Many familiar faces make an appearance on Wealth-X's list of the billionaires who made the most money this year. Businessmen like Warren Buffett and Bill Gates, who have dominated wealth rankings for years, continued to add billions of dollars to their already sizable fortunes. Here's the full list, ranked by billions made from Jan. 1 to Dec. 11, 2013: 10. Carl Icahn made $7.2 billion The corporate raider had a big year after bets on Netflix and Herbalife (HLF) yielded Icahn Capital Management $800 million and $500 million profits, respectively. He tweeted his thanks to Netflix (NFLX) CEO Reed Hastings and Kevin Spacey, star of the streaming service's hit show, "House of Cards." 9. Lui Chee Woo made $8.3 billion The founder of Galaxy Entertainment Group became Asia's second-richest man in 2013 as gambling revenue grew at a record pace in Macau. Lui is looking to expand his flagship casino in the city's Cotai area, which is known by many as the Asian version of the Las Vegas Strip. 8. Larry Page made $9.3 billion Google's co-founder and CEO made $3 billion in 24 hours when Google (GOOG) stocks hit an all-time high in October, breaking $1,000 for the first time. Android became the world's most popular operating system, running on 43 percent of the globe's smartphones. 7. Sergey Brin made $9.3 billion Brin, Google co-founder and head of special projects with Google X, made $2.9 billion in the October stock surge. As of Dec. 11, Brin is worth an estimated $30 billion, a 4.8 percent percent increase over the year. 6. Masayoshi Son made $10.3 billion The founder of Softbank, Asia's top Internet and telecommunications corporation, lost $70 billion in the dot-com crash, but he's surging back in a big way. The purchase of Sprint (S) and a large investment in Finnish game-maker Supercell are highlights in a year that saw Son's personal net worth more than double, growing from $8.8 billion to $19.1 billion. 5. Mark Zuckerberg made $10.5 billion Facebook (FB) stock hit an all-time high in October, and revenue continues to grow despite questions about the longevity of the product. 4. Jeff Bezos made $11.3 billion The founder and CEO of Amazon (AMZN), which made $17.1 billion in net sales in the third quarter, raised some eyebrows when he bought the Washington Post for $250 million this summer. 3. Sheldon Adelson made $11.4 billion According to Wealth-X, the casino mogul's personal net worth grew to an estimated $35.3 billion this year thanks to profits from his gambling properties in Las Vegas, Macau, and Singapore. 2. Bill Gates made $11.5 billion The world's wealthiest man ended the year with a personal net worth of $72.6 billion, up nearly 19 percent from $61.1 billion in 2012. 1. Warren Buffett made $12.7 billion Berkshire Hathaway's (BRK-A) (BRK-B) CEO personally made about $37 million a day in 2013, a year that saw the company's acquisition of Heinz and Nevada's NV Energy.

10 Best Casino Stocks To Watch Right Now: Umax Group Corp (UMAX)

Umax Group Corp., incorporated on March 21, 2011, is a development-stage company. The Company focuses to develop and distribute its product to the arcade and entertainment industry. The Company�� products include Rocket Launch, is Strength testing game which allows players to test their pushing/ throwing strength; Space Hockey, is a two player hockey game - each player must score as many as possible goals and Boxer, is a Simple punch testing game: insert coin/token/bill, press start button, hit the punch bag, wait for result, and try to beat opponent�� score or high score.

As of April 30, 2013, the Company had no revenues. The Company has developed its business plan, and executed exclusive distribution contract GEO a private enterprise, where it engages GEO as an independent contractor for the specific purpose of developing, manufacturing and supplying games for the Company.

10 Best Casino Stocks To Watch Right Now: Pinnacle Entertainment Inc.(PNK)

Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Ben Levisohn]

    Pinnacle Entertainment (PNK) has gained 56% this year; Las Vegas Sands (LVS) has climbed 38%. And Deutsche Bank has nice things to say about both today.

    Bloomberg

    First Pinnacle. Deutsche Bank’s Carlo Santarelli ponders the stock’s big move and comes away still seeing value in its shares. He writes:

    When we upgraded PNK in April, our thesis centered on the FCF strength of the combined entities [Pinnacle completed its acquisition of Ameristar Casinos on Aug. 14], a handful of favorable catalysts, easing regional gaming comps, & an inexpensive relative valuation. Given the shares’ sizeable move since then, we believe it is worth revisiting the investment case. Post the announcement of several asset sales and the closing of the transaction, we are adjusting our estimates, raising our PT to $30 from $24, and maintaining our bullish view at current levels given what we still believe to be an attractive free cash flow valuation, meaningful potential synergy realization beyond the $40 mm of announced benefits, and a free option on a lagging regional recovery.

    Santarelli also revisited Las Vegas Sands and there too, he likes what he sees. He writes:

    With…LVS at [a share price level] that have been challenging to break from over the last year plus, we believe this time is different and hence we see continued upward momentum…In the case of LVS, we see; 1) meaningful mass market strength continuing through year end, setting the stage for upward company and market estimate revisions for 2014, 2) continued cash flow appreciation and capital returns serving as downside protection and positive catalysts, and 3) continued shared gains, largely driven by table optimization and mass market strength, driving both estimates and sentiment.

    He also likes Wynn Resorts (WYNN), despite its 34% gain.�Santarelli writes:

    As for WYNN, we believe near-term estimates continue to take a back seat to capital return

  • [By Dan Radovsky]

    Pinnacle Entertainment (NYSE: PNK  ) has reached an agreement in principle with the Bureau of Competition of the Federal Trade Commission that would allow the company to complete its proposed acquisition of Ameristar Casinos (NASDAQ: ASCA  ) , Pinnacle announced today.

  • [By Sean Williams]

    Time to make the switch
    If I could name a sector that I'd certainly tread lightly around considering that consumers are tightening their wallets, it would be the casino sector. Casino companies rely on loose wallets and vacations to drive profits. This is why I feel it could be the time to say goodbye to casino and race track operator Pinnacle Entertainment (NYSE: PNK  ) near its 52-week high.

Hot Canadian Companies To Own In Right Now: (XTRN)

Las Vegas Railway Express Inc. focuses to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. It plans to establish a ?Vegas-style? passenger train service. The company is based in Las Vegas, Nevada.

10 Best Casino Stocks To Watch Right Now: Caesars Entertainment Corp (CZR)

Caesars Entertainment Corporation, incorporated on November 2, 1989, is a diversified casino-entertainment provider. The Company�� business is primarily conducted through a wholly owned subsidiary, Caesars Entertainment Operating Company, Inc. (CEOC), although certain material properties are not owned by CEOC. As of December 31, 2012, it owned, operated, or managed, through various subsidiaries, 52 casinos in 13 United States states and seven countries. The majority of these casinos operate in the United States, primarily under the Caesars, Harrah��, and Horseshoe brand names, and in England. In November 2012, the Company sold its Harrah's St. Louis casino to Penn National Gaming, Inc. In December 2012, the Company purchased all of the net assets of Buffalo Studios, LLC, a social and mobile games developer and owner of Bingo Blitz.

The Company�� casino entertainment facilities include 33 land-based casinos, 11 riverboat or dockside casinos, three managed casinos on Indian lands in the United States, one managed casino in Cleveland, Ohio, one managed casino in Canada, one casino combined with a greyhound racetrack, one casino combined with a thoroughbred racetrack, and one casino combined with a harness racetrack. The Company�� land-based casinos include nine in England, two in Egypt, one in Scotland, one in South Africa and one in Uruguay. As of December 31, 2012, its facilities had an aggregate of approximately three million square feet of gaming space and approximately 43,000 hotel rooms. In southern Nevada, Caesars Palace, Harrah�� Las Vegas, Rio All-Suite Hotel & Casino, Bally�� Las Vegas, Flamingo Las Vegas, Paris Las Vegas, Planet Hollywood Resort and Casino, The Quad Resort & Casino (formerly the Imperial Palace Hotel and Casino), Bill�� Gamblin��Hall & Saloon, and Hot Spot Oasis are located in Las Vegas and draw customers from throughout the United States. Harrah�� Laughlin is located near both the Arizona and California borders and draws customers primarily from! the southern California and Phoenix metropolitan areas and, to a lesser extent, from throughout the United States through charter aircraft. In northern Nevada, Harrah�� Lake Tahoe and Harveys Resort & Casino are located near Lake Tahoe and Harrah�� Reno is located in downtown Reno. These facilities draw customers primarily from northern California, the Pacific Northwest, and Canada.

The Company�� Atlantic City casinos, Harrah�� Resort Atlantic City, Showboat Atlantic City, Caesars Atlantic City, and Bally�� Atlantic City, draw customers primarily from the Philadelphia metropolitan area, New York, and New Jersey. Harrah�� Philadelphia (formerly Harrah's Chester) is a combination harness racetrack and casino located approximately six miles south of Philadelphia International Airport and draws customers primarily from the Philadelphia metropolitan area and Delaware. The Company�� Chicagoland dockside casinos, Harrah�� Joliet in Joliet, Illinois, and Horseshoe Hammond in Hammond, Indiana, draw customers primarily from the greater Chicago metropolitan area. In southern Indiana, it owns Horseshoe Southern Indiana, a dockside casino complex located in Elizabeth, Indiana, which draws customers primarily from northern Kentucky, including the Louisville metropolitan area, and southern Indiana, including Indianapolis. In Louisiana, the Company owns Harrah�� New Orleans, a land-based casino located in downtown New Orleans, which attracts customers primarily from the New Orleans metropolitan area. In northwest Louisiana, Horseshoe Bossier City, a dockside casino, and Harrah�� Louisiana Downs, a thoroughbred racetrack with slot machines, both located in Bossier City, cater to customers in northwestern Louisiana.

The Company owns the Grand Casino Biloxi, located in Biloxi, Mississippi, which caters to customers in southern Mississippi, southern Alabama, and northern Florida. Harrah�� North Kansas City dockside casino draws customers from the Kansas City metropolitan ar! ea. Harra! h�� Metropolis is a dockside casino located in Metropolis, Illinois, on the Ohio River, drawing customers from southern Illinois, western Kentucky, and central Tennessee. Horseshoe Tunica, Harrah�� Tunica, and Tunica Roadhouse Hotel & Casino, dockside casino complexes located in Tunica, Mississippi, are approximately 30 miles from Memphis, Tennessee and draw customers primarily from the Memphis area and, to a lesser extent, from throughout the United States through charter aircraft. Horseshoe Casino and Bluffs Run Greyhound Park, a land-based casino and pari-mutuel facility, and Harrah�� Council Bluffs Casino & Hotel, a dockside casino facility, are located in Council Bluffs, Iowa, across the Missouri River from Omaha, Nebraska. At Horseshoe Casino and Bluffs Run Greyhound Park, the Company owns the assets other than gaming equipment, and leases these assets to the Iowa West Racing Association (IWRA), a nonprofit corporation, and it manages the facility for the IWRA under a management agreement expiring in October 2024. The license to operate Harrah�� Council Bluffs Casino & Hotel is held jointly with IWRA, the qualified sponsoring organization.

The Conrad Resort & Casino located in Punta Del Este, Uruguay (the Conrad), draws customers primarily from Argentina and Uruguay. In November 2012, the Company announced that it had entered into a definitive agreement with Enjoy S.A. (Enjoy) to form a strategic relationship in Latin America. Under the terms of the agreement, Enjoy will acquire 45% of Baluma S.A., its subsidiary, which owns and operates the Conrad, and the Company will become a 10% shareholder in Enjoy upon consummation of the agreement. Upon the closing of the transaction, which is subject to certain conditions, including the receipt of all regulatory and governmental approvals, Enjoy will assume primary responsibility for management of the Conrad. Enjoy will have the option to acquire the remaining stake in Baluma S.A. between years three and five following closing. The cl! osing of ! the transaction remains subject to a number of conditions, including regulatory and governmental approvals in both Uruguay and Chile.

The Company owns four casinos in London: the Sportsman, the Golden Nugget, The Playboy Club London, and The Casino at the Empire. Its casinos in London draw customers primarily from the London metropolitan area, as well as international visitors. The Company also owns Alea Nottingham, Alea Glasgow, Alea Leeds, Manchester 235, Rendezvous Brighton, and Rendezvous Southend-on-Sea in the provinces of the United Kingdom, which primarily draw customers from their local areas. Pursuant to a concession agreement, it also operates two casinos in Cairo, Egypt, The London Club Cairo (which is located at the Ramses Hilton) and Caesars Cairo (which is located at the Four Seasons Cairo), which draw customers primarily from other countries in the Middle East. Emerald Safari, located in the province of Gauteng in South Africa, draws customers primarily from South Africa. It owsn and operates Bluegrass Downs, a harness racetrack located in Paducah, Kentucky.

The Company owns three casinos for Indian tribes: Harrah�� Phoenix Ak-Chin, located near Phoenix, Arizona, Harrah�� Cherokee Casino and Hotel, and Harrah�� Rincon Casino and Resort, located near San Diego, California. The Company manages Caesars Windsor, located in Windsor, Ontario, which draws customers primarily from the Detroit metropolitan area, Horseshoe Cleveland casino in Ohio, which it manages for Rock Ohio Caesars LLC (ROC), a venture with Rock Ohio Ventures, LLC (Rock Gaming), in which it has a 20% equity interest, and the Horseshoe Cincinnati casino in Ohio for ROC for a fee under a management agreement that will expire in March 2033. It also has a minority interest in Sterling Suffolk Racecourse, LLC (Suffolk Downs), which owns a horse-racing track in Boston, Massachusetts, and the right to manage a future gaming facility. The Company also owns ans operates a golf course on 175 acres of prime real! estate t! hrough a land concession on the Cotai strip in Macau.

Advisors' Opinion:
  • [By Travis Hoium]

    The next step
    The top end of the market has been doing well over the past two years, and Las Vegas Sands (NYSE: LVS  ) and Wynn Resorts (NASDAQ: WYNN  ) have been the beneficiaries. Las Vegas Sands's Las Vegas�revenue was up 7% in the first quarter, while Wynn's�was up 6.6%. But MGM Resorts (NYSE: MGM  ) and Caesars Entertainment (NASDAQ: CZR  ) haven't seen the same success in the lower end of the market.

  • [By Matt Thalman]

    While all the major casino operators will benefit from a recovering Las Vegas, this market probably won't produce any massive growth for the industry anytime soon. Double-digit growth rates will still probably only be seen in Macau, but since MGM Resorts (NYSE: MGM  ) and Caesars Entertainment (NASDAQ: CZR  ) control such a large portion of the hotel rooms and casino floor space in Las Vegas, news that the city is recovering should help.

  • [By Travis Hoium]

    Gaming stocks have had a fabulous start to 2013, with each of the top five publicly traded U.S. companies beating the S&P 500. Caesars Entertainment (NASDAQ: CZR  ) is leading the pack after announcing the spinoff of its "growth assets," and the four companies with operations in Macau have made slow and steady gains.

  • [By Roberto Pedone]

    Caesars Entertainment (CZR) is a casino-entertainment provider and a diverse U.S. casino-entertainment company. This stock closed up 4.2% at $18.36 in Friday's trading session.

    Friday's Volume: 1.55 million

    Three-Month Average Volume: 636,136

    Volume % Change: 205%

    From a technical perspective, CZR jumped higher here and broke out into new all-time high territory above $18.37 with heavy upside volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $11.90 to its intraday high on Friday of $18.73. During that move, shares of CZR have been consistently making higher lows and higher highs, which is bullish technical price action.

    Traders should now look for long-biased trades in CZR as long as it's trending above Friday's low of $17.39 or above more near-term support at $16, and then once it sustains a move or close above its all-time high at $18.73 with volume that's near or above 636,136 shares. If we get that move soon, then CZR will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $22 to $25.

10 Best Casino Stocks To Watch Right Now: NanoTech Entertainment Inc (NTEK)

NanoTech Entertainment, Inc. (NanoTech), formerly Aldar Group, Inc., is a provider of gaming technology for the coin-op arcade, casino gaming and consumer gaming markets. The Company operates as a manufacturer, developing technology and games, and then licensing them to third parties for manufacturing and distribution. As of June 30, 2009, the Company�� products included MultiPin, Xtreme Rally Racing, NanoNET Online System, Pinball Wizard, Mot-Ion Adapter, Opti-Gun Adapter and Retr-IO Adapter. In April 2009, the Company acquired NanoTech Entertainment, Inc. In July 2013, NanoTech Entertainment Inc completed the acquisition of Clear Memories, Inc. of Napa California. Effective August 9, 2013, NanoTech Entertainment Inc acquired Worldwide Global Entertainment, a developer of prepackaged software.

The Company�� physics engine and motion sensors allow MultiPin to accurately recreate the experience of a mechanical pinball machine, while providing players with a variety of classic and modern pinball games to choose from. Xtreme Rally Racing is a driving machine that features three modes of game play: Xtreme Off-Road-Race Head to Head against other players and the computer to checkpoints while driving anywhere on the map with no preset course; Timed Rally Stages-Classic Rally Racing on real world courses. Players will be able to race in five different countries on real world rally courses, and Xtreme Stadium Racing-Custom Stadiums designed for Xtreme racing, including a figure eight multi-lap course with huge jumps. NanoNET Online System is remote operator control of machines, including diagnostics, accounting reports, and automatic software updates and enhancements downloaded over the net.

The Company has created the input device designed to give the pinball players a way to experience real pinball controls on their personal computer. Based on the technology developed for the MultiPin product it has built a controller that lets people play pinball using traditional controls and! the ability to shake and nudge the table. The Mot-Ion adapter is a universal serial bus (USB) adapter that allows do it yourself Pinball enthusiasts to build their own cabinet using real pinball controls providing analog inputs for nudging and bumping. The OptiGun adapter is a USB adapter that allows players to connect Arcade Light Guns to any USB based system. The Retr-IO adapters provide a standard JAMMA interface for USB based systems.

Advisors' Opinion:
  • [By Bryan Murphy]

    Call them hunches (because that's all they are), but now would be a great time to get out of a NanoTech Entertainment, Inc. (OTCMKTS:NTEK) position and/or get into an ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD). NTEK looks like its reached its maximum potential - for the time being - while ACAD looks like it's ready to start rolling higher again.

  • [By Peter Graham]

    Nyxio Technologies Corp (OTCMKTS: NYXO), COREwafer Industries Inc (OTCMKTS: WAFR) and NanoTech Entertainment, Inc (OTCMKTS: NTEK) are three small cap stocks in some very diverse industries. In fact, one of these stocks just bought a 3D ice sculpture business. So will investors see their investment melt with that small cap stock�along with the other two? Here is a closer look to help you decide for yourself:��

10 Best Casino Stocks To Watch Right Now: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Travis Hoium]

    What: Shares of Boyd Gaming (NYSE: BYD  ) jumped 10% today after the company got an analyst upgrade.

    So what: Morgan Stanley upgraded shares to overweight today, and gave the stock a $12 price target. The analyst cited the potential for online gaming as the driver of the stock, potentially bringing as much revenue to the industry as Las Vegas and Atlantic City combined. �

  • [By Dan Caplinger]

    MGM has built a history of being the odd player out in many of the most lucrative opportunities in the gaming industry. In Macau, the company is stuck in the slower-growth area of the Asian gaming destination. In Las Vegas, the new CityCenter area in the mid-Strip has watered down MGM's opportunities and has created another potential barrier for patrons coming from the northern end of the Strip to its namesake MGM Grand property. And in New Jersey, where online gaming has boosted prospects for Caesars Entertainment (NASDAQ: CZR  ) and Boyd Gaming (NYSE: BYD  ) , MGM has no exposure.

10 Best Casino Stocks To Watch Right Now: MGM Resorts International(MGM)

MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Sean Williams]

    The other knock against the sector is merely that it's cyclical and prone to downswings ��especially for the casino operators relying heavily on the currently stagnant U.S. market. MGM Grand (NYSE: MGM  ) is an example of a casino operator that's expanded into Macau but still derives the majority of its business from the United States. Unsurprisingly, it hasn't turned an annual profit since 2007 and isn't expected to until at least 2015.

  • [By Travis Hoium]

    Even if a federal bill does pass, there's no guarantee Zynga would win. Online poker is all about gaining a critical mass of users, and it's a uphill battle. MGM Resorts (NYSE: MGM  ) and Boyd Gaming (NYSE: BYD  ) have already partnered with bwin.party for a U.S. online gaming venture. Bwin.party is one of the largest real-money online poker companies in the world, and with PokerStars likely shut out of the U.S. in the near future, this would be a formidable opponent. Caesars Entertainment (NASDAQ: CZR  ) has also had its eyes on online poker for some time, and with the World Series of Poker brand, it has a big draw for players. Caesars thinks so much of online poker that it's spinning off its "growth" assets, and online games are a key part of the new company.

  • [By Travis Hoium]

    But there's still evidence that it exists, even if authorities don't push hard for information. MGM Resorts (NYSE: MGM  ) was forced to divest its New Jersey properties because of the company's relationship with Pansy Ho, whose father had ties to triads in Macau. Las Vegas Sands is under investigation by the U.S. attorney's office for possibly violating money laundering laws in Macau last year.

10 Best Casino Stocks To Watch Right Now: Penn National Gaming Inc.(PENN)

Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.

Advisors' Opinion:
  • [By Paul Ausick]

    Penn National Gaming Inc. (NASDAQ: PENN) completed on Monday the spin-off of its real-estate holdings into a new REIT, Gaming and Leisure Properties Inc. (G&LP) (NASDAQ: GLPI). The spin-off was first announced a year ago. Shares in GLPI are trading at around $46.51 after opening at $45.76 this morning.

  • [By Paul Ausick]

    Stocks on the Move: BlackBerry Ltd. (NASDAQ: BBRY) is down 16.4% at $6.50 after announcing that no buyout bid will be forthcoming. Penn National Gaming Inc. (NASDAQ: PENN) is down 76.7% at $13.75 after spinning-off its real-estate holdings into a REIT. Suntech Power Holdings Co. Ltd. (NYSE: STP) is up 15.5% at $1.53 following the acquisition of its major operations in Wuxi.

10 Best Casino Stocks To Watch Right Now: Wynn Resorts Limited(WYNN)

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Daniela Pylypczak]

    Wynn Resorts (WYNN) announced on Tuesday that it plans to run its online gaming business in Caesars Entertainment Corp’s hotel in New Jersey.

    Wynn, which does not have any casinos in New Jersey, will run its online gaming business through computers at Caesars hotel in Atlantic city. Both Caesars and Wynn will be working with 888 Holdings Plc, one of Europe’s largest online gambling operators.

    Currently, Wynn owns two destination casinos:�Wynn Las Vegas and Wynn Macau. The two casinos feature roughly 186,000 and 275,000 square feet of casino gaming space, respectively.

    Wynn shares gained 0.70% during Tuesday’s session. Year-to-date, the stock is up 31.30%.

  • [By Steve Symington]

    After all, even if additional states continue to pass legislation legalizing online gambling, you can bet Zynga will face intense competition from other well-funded competitors. Michael also noted there's a chance recent rumors of a Zynga partnership with Wynn Resorts (NASDAQ: WYNN  ) could turn out to be true.

  • [By M. Joy, Hayes]

    Industry trends
    Other businesses in the industry also have copious related-party transactions. In particular, founder-led businesses Wynn Resorts (NASDAQ: WYNN  ) and Boyd Gaming (NYSE: BYD  ) �reported a large number of such transactions in their 2013 proxies, including employment of relatives, employee use of company services, and employee use of company-owned property. MGM Resorts International (NYSE: MGM  ) , on the other hand, didn't have to report any related-party transactions in its 2013 proxy.

Saturday, December 28, 2013

The Other Precious Metal Can Double Your Money Now

At times like this, gold and silver typically grab all the attention... and attract all the "safe" money. But there's another metal that could blast past both of these, virtually overnight.

That's because it has unique physical properties for which there is just no substitute - something its biggest consumers lose quite a bit of sleep over.

It's 15 times more rare than platinum... and 30 times more rare than gold.

And, as you'll see in the chart below, it hasn't been this attractive in 13 years.

We're looking at a 70% gain on this one - perhaps more - no matter how far Washington kicks the "debt can" down the road.

At current prices, it could even double...

Palladium: The Double-Your-Money Metal

Even when the government isn't on the brink of financial suicide, palladium is in heavy - and growing - demand.

It's found in everything from jewelry to dental equipment, including a wide range of electronics.

Tablets, flat screen TVs, iPhones, iPods, iPads, iEverythings...

They all require palladium.

Electronics represent 12% of gross palladium demand.

For perspective, there were 5.4 billion cell phones on the planet in 2009. By the end of this year, estimates are that there will be 8 billion. It's going to take a lot of palladium for the world to keep talking, texting, and tweeting.

But its most significant use is in the automotive industry, where fully two-thirds, or 67%, of all palladium is consumed each and every year.

That's because palladium is found in virtually every single gas-powered vehicle's pollution-controlling catalytic converter.

And global light vehicle production has been on a tear in the last couple of years, with no signs of abating. 2011 saw 77 million light vehicles produced, and 2012 saw 81 million. This year, it's expected there will be 85 million units produced, and by 2017, IHS Automotive forecasts 102 million units.

By 2018, China alone will likely be manufacturing and buying about 31 million vehicles annually.

Developed and developing economies alike have adopted increasingly stringent emission control standards, boosting the need for palladium.

There's little doubt, we're going to need a whole lot more of this specialized metal.

But it's not going to be easy...

Global Supply Is Dwindling

What's crucial to understand about palladium supply is where the metal is actually sourced.

Only about 6.5 million ounces of palladium are produced annually. Recycling, plus sales from a Russian stockpile, supplies the rest, to reach a total 9.8 million ounces each year.

Russia is responsible for fully 44% of the 6.5 million produced ounces and South Africa for 36%. But both of these suppliers face serious output challenges. Norilsk Nickel is responsible for all of Russia's mined production as a byproduct of nickel production. But Russia's mined supply has been dwindling, and active mines have seen declining ore grades.

What's more, only two years ago 775,000 ounces came to market from Russia's state repository, Gokhran. That was about 8% of world supply. Last year, that number had dropped by 68% to 250,000 ounces. Industry insiders figure those stockpiles may now be totally exhausted, but officially no one can say for sure; Gokhran's contents are a state secret.

What we do know is that 2012 saw the lowest level of global palladium supply since 2002, suffering a deficit of 1.07 million ounces.

For its part, South African supply is even more challenged. Palladium is produced there as a byproduct of platinum. Numerous South African platinum producers are facing such high costs that they no longer turn a profit. Mines are deeper, power and water are sparse, labor costs are rising, political risks are growing, and work strikes and other stoppages all add up to declining output.

That leaves 14% of mined palladium supply contributed by North America and 6% from a few small players sprinkled across Africa, Australia, China, and the former Yugoslavia.

The ever-dwindling supply of palladium isn't going entirely unnoticed, of course...

Industry Insiders Are Hyper Aware of the Supply Squeeze

I recently interviewed a mining executive whose company is a primary palladium producer.

He concurred that the fundamentals for palladium demand - thanks to pressure from pollution control and car sales - are very supportive. He also confirmed that Russian and South African supplies face real headwinds.

Morgan Stanley (NYSE: MS) has recently said, "We expect an ongoing and sizable structural deficit in palladium supported by an increase in net auto catalytic converter demand as gross demand from strong vehicle growth and tightening emission standards outpaces recycled palladium supply, especially in China."

After accounting for investment demand, Morgan Stanley is forecasting a 2013 palladium deficit on the order of 1.013 million ounces.

Besides the deteriorating supply and expanding demand factors I've outlined, there are two other catalysts that are primed to ignite palladium prices ahead.

"Double Demand" from ETFs and Short-Sellers

The first is physical, or investment, demand. Since 2007 physically backed palladium ETFs have grown to include 11 such investment vehicles, absorbing nearly 2.2 million ounces from global supply, up from 1.9 million at the outset of 2013. Johnson Matthey PLC (LON: JMAT) has indicated that so far this year palladium ETFs have acquired 339,000 ounces of palladium, on pace to surpass 2012's 385,000 ounces. And this trend is in motion.

Now a 12th palladium ETF is in the offing, which could be trading on South Africa's Johannesburg Stock Exchange by year's end. A wildly successful platinum ETF that began trading there earlier this year has already soaked up 685,000 ounces, representing fully 30% of worldwide ETF holdings. The new palladium offering could well be Act II, further exacerbating the market's persistent shortfall.

Palladium Futures Precious Metals

Yet another bullish factor for palladium prices is something intriguing that's happening in the futures market. As you can see in the chart at right, the eight largest futures traders are short 127 days of world palladium production. That's at a 13-year high, and it's more than any precious metal, and more than all other major commodities.

If the palladium price should suddenly rise significantly, those traders would likely be forced to quickly cover their massive short positions.

That could lead to a violent rally in the price of palladium, as they would have to buy long contracts to offset their shorts.

And get this...

Norilsk, the world's largest palladium producer, also expects a 1 million ounce deficit this year and has repeated their stance that Gokhran is drained of its palladium stockpile, unable to contribute to the market going forward.

The pricing estimates reflect that shortfall, too.

Palladium is currently trading around $710 per ounce. The average of analysts' forecasts pegs this year's price at $751, next year's at $829, and $909 two years out. The most optimistic of these projections sees palladium averaging $1,200 in 2015.

Extremely bullish supply and demand fundamentals, impending growth in investment demand - and the futures "wild card" all point to palladium prices heading up fast, a lot faster than most analysts expect.

Stocks Slip on Concern Washington to Drag Corporate Outlooks

NEW YORK (TheStreet) -- Major U.S. stock markets were slipping Tuesday as investors monitor the economic uncertainties spurred by the drawn-out fiscal debates in Washington and attempt to gauge the impact on corporate outlooks as the third-quarter earnings season begins this week.

Still, there is optimism that the impasse over debt-ceiling talks in government will be resolved as Senate Majority Leader Harry Reid prepares to unveil a standalone bill to increase the government's borrowing caps.

Reid's bill would allow the U.S. at least $1 trillion in additional borrowing room beyond the $16.7 trillion debt limit expected to be breached on October 17, providing the government with enough borrowing ability to pay its bills through next year's general elections in November.

The S&P 500 was down 0.37% to 1,669.85, while the Dow Jones Industrial Average was off 0.37% to 14,881.27. The Nasdaq was giving up 0.85% to 3,738.45. "If it gets off the ground, it ends the threat of a debt default for the immediate future," said Peter Cardillo, chief market economist at Rockwell Global Capital in Manhattan, in an emailed comment about Senate's expected move. "We think earnings sentiment remains neutral as the political impasse overshadows for now. However, that's not to say individual companies will not be punished," he added. Tower Group International (TWGP) was dropping 36.3% to $4.74, its steepest fall since its 2004 public market debut, after the Bermuda-based insurer said that it will have to explore "a range of strategic options" following a goodwill impairment charge of about $215 million and its discovery that it will have to add $365 million to its loss reserves reflecting payouts owed for workers compensation among a host of other liabilities. Jamba, Inc. (JMBA) was sinking 18.63% to $10.95 after the smoothie maker said that less impactful than usual marketing campaigns amid a slowdown in consumer spending will reduce third-quarter same-store sales by 3% to 4% and that 2013 same-store sales may show up flat to up 1%. Xerox (XRX) was surrendering 0.96% to $10.30 after the office equipment company disclosed that it is being probed by the Securities and Exchange Commission on certain accounting practices at Affiliated Computer Services, a business it bought in February 2010 and is now a part of Xerox's Services unit. IT management company SolarWinds (SWI) was shedding 2.21% to $33.70 after saying that it will buy privately held Confio Software for $103 million in cash. Alcoa (AA) will be reporting after the market close, while JPMorgan Chase (JPM) and Wells Fargo (WFC) will be releasing their quarterly results on Friday. The benchmark 10-year Treasury was falling 3/32, raising the yield to 2.641%. Follow @atwtse -- Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.>

Wednesday, December 25, 2013

Hot Blue Chip Stocks To Own Right Now

What do you get when you combine a strong jobs report plus a promising beginning to earnings season, and soothing words from Fed Chairman Ben Bernanke? A new record closing high for the Dow Jones Industrial Average (DJINDICES: ^DJI  ) , of course.

The blue chips jumped 169 points today, or 1.1%, to close out at 15,460, topping the previous closing high of 15,409 that it hit on May 28 of this year. The S&P 500 also hit a new closing high. The Dow's intraday high from May 22, of 15,542, still stands. Today's surge came as Ben Bernanke said that the Fed's accommodative monetary policy would stay in place in order to lower the unemployment rate, which currently sits at 7.6%. It should come as no surprise to see the markets respond like this, as investors have been obsessed with monetary policy since Bernanke first seriously floated the idea of tapering the central bank's $85 billion a month bond-buying program on May 22. His recent statement seems to indicate that the Fed will not be hasty in reducing the stimulus.

Hot Blue Chip Stocks To Own Right Now: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:
  • [By CNBC]

    Mark Wilson/Getty ImagesFederal Reserve Chairman Ben Bernanke "Taper talk" could pretty much be dead until next year. Thanks to the dysfunction in Washington, many Fed watchers now see the first taper in the Federal Reserve's bond buying coming sometime later than expected -- certainly not before December but probably in the first quarter. Wall Street had been geared up for the start of a pullback from the easing program sometime this quarter, but a more sluggish economy and fiscal uncertainty make that less likely. "One thing we know for sure, as much as we know anything, is that short-term interest rates are going to stay low for as far as the eye can see," DoubleLine CEO and chief investment officer Jeff Grundlach said on "Squawk on the Street." "Quantitative easing is not even going away. It seems with this budget wrangling, it's going to keep going up." "It means the credit market is really a safer place than it's been for the last few months," he said. Since word of a compromise debt deal came Wednesday, bond yields have fallen and the dollar has tumbled, as traders worried the partisan battling would resume around the next set of deadlines for the budget in January and debt ceiling in February. The 10-year Treasury yield dipped to 2.6 percent from its Wednesday morning high of 2.76 percent, and the dollar index lost a full percent Thursday, trading at a nine-month low of 79.68. The S&P 500 Thursday, after trading lower early in the day, broke through to a new high in the afternoon in a burst of buying. The S&P 500 (^GSPC) closed up 11 at 1,733, topping its Sept. 19 high. The Dow (^DJI), however, finished down 2 at 15,371, dragged down by losses in IBM (IBM). "You don't have to worry about the government anymore. A couple of speed bumps are out of the way. There's no way they're going to taper this month and the odds of them tapering in December are low," said Dan Greenhaus, chief global strategist at BTIG. Greenhaus said the stock market als

  • [By Selena Maranjian]

    Alamy April is Financial Literacy Month, and our goal is to help you raise your money IQ. In this series, we'll tackle key economic concepts -- ones that affect your everyday finances and investments -- to help you make smarter choices with every dollar decision you face. Today's term: net worth. In a nutshell, net worth is what you get when you subtract liabilities from assets -- what you owe from what you own. Like many economic and financial terms, net worth can apply in a variety of situations. If you're evaluating a company for your portfolio,you might glance at its balance sheet to get a handle on its net worth. Balance sheets break out assets (such as cash, inventory, and receivables) and liabilities (such as debt and accounts payable). Subtracting the latter from the former gives you net worth, which is also referred to in this context as shareholders' equity or book value. Here's an example: As of the end of 2012, IBM's (IBM) assets totaled $119 billion, and its liabilities totaled $100 billion. Thus, its net worth, or shareholders' equity, was $19 billion. Net Worth in Our Lives Each of us has an individual net worth, too, and it's arrived at in similar fashion. First, grab a sheet of paper and list all your assets. These would include the contents of your bank accounts, your investments, the equity you have in your home, your retirement accounts, the current value of your car(s), the value of your jewelry, the contents of your wallet or purse, and so on. Be thorough -- your sizable board game collection might be worth several thousand dollars, for example. Next, list all your liabilities, or debts. These would include what you owe on your mortgage or car loan, your credit card debt, any school loans outstanding, and any other debt, such as a home equity loan. Finally, subtract the liabilities from the assets. What's left is your net worth. Ideally, your net worth is positive and will grow over time. If your net worth is in negative territory,

  • [By Michael Flannelly]

    International Business Machines Corp. (IBM) announced early on Thursday that it is acquiring Daeja Image Systems Ltd, a privately held software company headquartered in the U.K. Financial terms of the deal were not disclosed.

    Daeja Image Systems is a leading provider of software that makes it easier for businesses to view large documents and images.

    “IBM is continuing to lead the way in helping organizations access the content they rely upon for everyday operations,” said IBM Enterprise Content Management Business Leader Doug Hunt. “The acquisition of Daeja will simplify how business data is viewed by department or line-of-business users.”

    IBM shares were down 68 cents, or 0.35%, during early morning trading on Thursday. The stock is up 1.06% year-to-date.

Hot Blue Chip Stocks To Own Right Now: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:
  • [By Dan Caplinger]

    Drilling down on individual sectors, though, the impact of strengthening energy prices could point to a recovery for the sector. Dow energy giants ExxonMobil (NYSE: XOM  ) and Chevron (NYSE: CVX  ) are less sensitive to changing conditions in the energy sector, as both are integrated companies whose underlying segments often cancel each other out in whole-company results. For instance, when oil prices have fallen in the recent past, Exxon and Chevron would see declining revenue from their exploration and production segments but rising profit in their refining operations. The companies are more sensitive to factors like production volume -- Chevron has done a better job than Exxon of finding new prospects and promising oil-field plays to replace lost production at aging wells.

Top 5 Heal Care Stocks To Invest In 2014: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

  • [By Dividend Growth Investor]

    In a previous article, I outlined that it is getting more difficult to find quality dividend paying stocks to buy. Most of the usual suspects like Kimberly-Clark (KMB) or Colgate-Palmolive (CL) are very overvalued today, which prevents me from adding to my positions there. Other companies like Chevron (CVX) are attractively valued today, but unfortunately my portfolio is overweight in them. Currently I find the oil sector to be cheap and have some of the lowest P/E ratios in the market. However, I would hate to be concentrated in one sector which is exposed to the fluctuating prices in its commodity products.

  • [By James Well]

    Analysts��Consensus Position on Pfizer

    Thirteen analysts including those at TheStreet, Thomson Reuters/Verus, Goldman Sachs, J.P. Morgan, Barclays Capital, Morgan Stanley and Argus Research are optimistic about the performance of Pfizer going forward and, hence, reiterated a consensus buy recommendation at an average target price of $31.78 per share. Last Wednesday, analysts at Goldman Sachs removed Pfizer from Goldman�� conviction buy list (CL) where Pfizer has been since Aug. 9, 2011, and placed it on the buy list but raised its price target from $34 to $35 per share. Jami Rubin, an analyst with Goldman Sachs, claimed that Pfizer has gone up by 82.5% since being added to the CL as against 53.9% for the S&P 500 during the period and, therefore, there was the need to replace Pfizer with AbbVie at a price target of $60 because they claimed AbbVie has greater upside at this time.

Hot Blue Chip Stocks To Own Right Now: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:
  • [By Matt Thalman]

    Despite announcing a $0.77 per-share quarterly dividend yesterday, McDonald's (NYSE: MCD  ) is down 1% today. However, shares could be moving lower because of news from yesterday: During the company's annual shareholder meeting, CEO Don Thompson had to defend his company against comments that McDonald's food is contributing to the obesity problem in America. Some critics have even pointed out that the company's marketing strategy -- including its mascot, Ronald McDonald -- has contributed to childhood obesity.�

  • [By Jon C. Ogg]

    The following look as though they will be the top five Dogs of the Dow for 2014: AT&T Inc. (NYSE: T), Verizon Communications Inc. (NYSE: VZ), Intel Corp. (NASDAQ: INTC), Merck & Co. Inc. (NYSE: MRK), McDonald’s Corp. (NYSE: MCD) and Chevron Corp. (NYSE: CVX).

Hot Blue Chip Stocks To Own Right Now: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:
  • [By Wallace Witkowski]

    This will be a ��ow-a-day��week of quarterly results with Merck & Co. (MRK) �on Monday, Pfizer Inc. (PFE) �on Tuesday, Visa Inc. (V) �on Wednesday, Exxon Mobil Corp. (XOM) �on Thursday, and Chevron Corp. (CVX) �on Friday.

Monday, December 23, 2013

Will Europe's Debt Mess Knock Out German Stocks' Rise?

Europe's economy remains stuck in the vise of recession, but Germany's stocks finally have started to pick up after a lackluster start to the year. The DAX (DAXINDICES: ^DAX  ) gained another 1.1% this week, bringing its rise over the past three months to more than 11.8% to outstrip its year-to-date gains. Can investors keep beating Europe's crunch in the region's top economy, or is the German market bound to follow in its neighbors' footsteps?

Europe stuck in neutral
Bad news came out this past week as a traditional reading of German investor confidence declined by more than 2 percentage points. The ZEW Indicator is still hanging well above its historical average of a 23.7 reading, but has fallen off the rising pace set through the end of last year into the beginning of 2013. The reading came below economist expectations that had predicted a rise out of the ZEW in July. Still, the ZEW's mark for Germany is far better than its reading for the eurozone as a whole, which hangs at an unbearably low negative 74.7 points.

The rest of Europe is doing Germany's economy no favors, however. Debt-plagued Greece has stumbled on through austerity, and while Germany's finance minister praised the country's efforts, his warnings to the country to cease petitioning for debt write-off has spiked a sharp divide between fiscally resilient Germany and its less fortunate peers in the eurozone. Portugal's in much the same shape as Greece, as the country faces a Sunday deadline to decide the fate of its bailout measures.

For Germany's economy, the ongoing swamp of the eurozone will weigh on the nation's exports -- and export-reliant companies -- as it has already. That's no easy hurdle to jump for such a trade-reliant economy as this, and for Germany's top international businesses like industrial conglomerate Siemens (NYSE: SI  ) , European business will grow all the more troubling.

Of course, it's not just Europe that's posing a problem to Siemens. The company self-reported allegations that it engaged in railway price fixing in Brazil alongside several other multinationals from Europe and Japan. It's a bad time for all of these companies, considering that a massive railway contract in Brazil is set to come up for bidding in August, one that the Brazilian government estimates at a cost of around $16 billion.

It's not the first time that Siemens has been involved in such activities: The company was embroiled in a European corruption affair in 2006 that ultimately cost more than $260 million in court fines. Investors can only hope these Brazilian accusations don't end up costing Siemens too much -- and that they don't jeopardize the company's ambitions in one of the world's emerging market star economies, particularly as Siemens's stock has been stuck in the red in 2013.

Deutsche Lufthansa (NASDAQOTH: DLAKY  ) performed better this week with a 1.5% gain as Germany's airline picked up an upgrade from sell to neutral from Goldman Sachs. It's still a tough time for airlines across the industry due to high fuel costs, and JP Morgan didn't share Goldman's sentiments when it downgraded the stock later in the week, although like its fellow bank, JP Morgan holds the stock at a neutral rank. Low-cost airlines like Ryanair have pushed hard into the cost-conscious European market, and Lufthansa has admitted as much by announcing earlier this year that it could explore the option of a low-cost base in Asia to compensate.

For investors of Lufthansa, Siemens, and other leading German stocks, it's impossible to overlook the shadow of the eurozone's debt woes looming large over the German economy. Europe's hardly the only region in a bind: Many global regions are still stuck in neutral. However, their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report.

Sunday, December 22, 2013

Is Hulu's Hoop Worth Jumping Through?

The latest potential suitor for Hulu is AT&T (NYSE: T  ) , according to reporting by AllThingsD. Sources "close to" AT&T told AllThings D the company is talking with investment and media company Chernin Group about joining forces in a bid for the online video provider.

The Chernin Group would appear to be good company in such an endeavor. Its head, Peter Chernin, is a founder of Hulu and should be quite familiar with its operations. Chernin is also the former COO of News Corp. (NASDAQ: FOXA  ) , one of the three current Hulu owners. The others are Disney (NYSE: DIS  ) and Comcast (NASDAQ: CMCSA  ) .

The Chernin Group reportedly offered $500 million for Hulu in April, but considering how much competition seems to be forming up, that bid may just elicit snickers from the owning triumvirate.

AllThings D also reports that bids have to be at least $1 billion, and DIRECTV (NASDAQ: DTV  ) is said to be ready with a bid of at least that much. Time Warner Cable (NYSE: TWC  ) , Yahoo! (NASDAQ: YHOO  ) , and the private-equity firms KKR, Guggenheim Digital, and Silverlake Partners are also ready to compete.

But that $1 billion ante seems small potatoes, considering Google's (NASDAQ: GOOG  ) rumored $4 billion bid two years ago. That proposal was supposedly thrown out over disagreement on the length of streaming media rights.

It is the revenue from TV licensing fees that make selling Hulu attractive to its media company owners. TV programming makes up the great bulk of streaming video, accounting for 80% of all streaming units for the first quarter of 2013, according to the NPD Group.

Hulu and Amazon.com both (NASDAQ: AMZN  ) play second fiddle to SVOD giant Netflix (NASDAQ: NFLX  ) , but the distance between those two and Netflix is closing a bit, according to NPD. Netflix had a 90% share of video streaming during the first quarter, but that's four percentage points down from the same period last year.

Hulu Plus and Amazon Prime, on the other hand, saw growth. Though nothing to immediately threaten Netflix's dominance, it does show, however, that Netflix subscribers are willing to try other services.

So Netflix's hold on subscribers is not total. Does that mean Hulu would be worth a price tag in the multiple billions? As a benchmark, Netflix's market cap is around $12.25 billion, and Hulu's value would not be anywhere close to that.

If the lessons from Google's attempts to buy Hulu in 2011 still hold, it will be negotiations over licensing rights that could be crucial in any deal. Hulu's sellers would want the shortest licensing period they can get so that when the licenses expire, they can jack up the fees.

But a longer streaming rights period would be of higher value to Hulu's buyer.

With Peter Chernin's intimate experience with Hulu, his group -- along with AT&T if reports hold true -- would seem to have the best capability to judge where to draw the line in determining Hulu's true value.

Saturday, December 21, 2013

Future Home Sales Expectations at 5-Year High

After a three-month slump, homebuilder confidence is on the rise, according to May's National Association of Home Builders/Wells Fargo Housing Market Index released today.

After dropping to a revised reading of 41 for April, a more positive outlook for current and future sales, as well as prospective buyer traffic, pushed this month's index up three points to 44.

Source: Author; data from NAHB.org. 

"Builders are noting an increased sense of urgency among potential buyers as a result of thinning inventories of homes for sale, continuing affordable mortgage rates, and strengthening local economies," said NAHB Chairman Rick Judson in today's press release. "This is definitely an encouraging sign even amid rising challenges with regard to the cost and availability of building materials, lots, and labor."

The current sales component increased four points to 48, while prospective buyer traffic improved three points to reach 33. As a positive sign toward a housing market recovery, future sales expectations bumped up one point to 53 -- the highest level since February 2007.

NAHB Chief Economist David Crowe believes housing market improvements may be the first movers in a strengthening economy: "While industry supply chains will take time to re-establish themselves following recession-related cutbacks, builders' views of current sales conditions have improved, and expectations for the future remain quite strong as consumers head back to the market in force."

Panera Bread Meets on Revenues, Misses on EPS

Panera Bread (Nasdaq: PNRA  ) reported earnings on April 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 26 (Q1), Panera Bread met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased. GAAP earnings per share grew significantly.

Margins expanded across the board.

Revenue details
Panera Bread recorded revenue of $561.8 million. The 24 analysts polled by S&P Capital IQ hoped for a top line of $566.0 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $498.6 million.

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

EPS details
EPS came in at $1.59. The 27 earnings estimates compiled by S&P Capital IQ predicted $1.65 per share. Non-GAAP EPS of $1.59 for Q1 were 14% higher than the prior-year quarter's $1.40 per share. GAAP EPS of $1.64 for Q1 were 17% higher than the prior-year quarter's $1.40 per share.

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

Margin details
For the quarter, gross margin was 35.2%, 20 basis points better than the prior-year quarter. Operating margin was 13.6%, 10 basis points better than the prior-year quarter. Net margin was 8.6%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $598.7 million. On the bottom line, the average EPS estimate is $1.78.

Next year's average estimate for revenue is $2.45 billion. The average EPS estimate is $7.07.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,405 members out of 1,557 rating the stock outperform, and 152 members rating it underperform. Among 470 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 442 give Panera Bread a green thumbs-up, and 28 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Panera Bread is outperform, with an average price target of $186.43.

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Wednesday, December 18, 2013

Pacific Rim Profits

Carl Delfeld, editor of Capital Gains, looks around the Pacific Rim for value-oriented investment opportunities. Here, he looks at a mining machinery outfit and a financial play on the expansion of the Panama Canal.

Steve Halpern: We're here today with global investing expert, Carl Delfeld, founder of the Pacific Economic Club and editor of Capital Gains, a newsletter focused on global opportunities. How are you doing today, Carl?

Carl Delfeld: Hello Steven, great to be with you.

Steve Halpern: First, could you tell us a little about the Capital Gains newsletter?

Carl Delfeld: Sure, the Capital Gains newsletter is the member investment newsletter for the Pacific Economic Club, which is a group of over 3,000 different investment professionals, spread out all over the world.

A lot of them are in the Pacific Rim, and the goal, of course, is capital gains, so we're looking at the very best ideas at the extremes, either deep value, demonstrating a clear uptrend, or really fast growth, so we're trying to stay out of, what we call, the mushy middle.

Steve Halpern: Can you tell us a little more about the Pacific Economic Club itself?

Carl Delfeld: Sure, sure. Well, Pacific Economic Club grew over the years. I've been in the business all over the world, you know, from London to Tokyo to Southeast Asia and Manila, and over the years, I've collected, you know, a fair amount of good contacts, and so we started to just, kind of, share ideas and information, and that grew into the club.

In addition to the newsletter and investment ideas, we take tours, investment tours to different places. I have one planned for March, for Vietnam in March of next year, and we also have summits and meetings as well, but the newsletter—the Capital Gains newsletter's, sort of, the heart of the club.

Steve Halpern: Well, let's walk through a couple of stock ideas, so the people can understand what it is you recommend, and one of those ideas is Joy Global (JOY), a large-cap company in the mining machinery sector, and you note that the stock has been hurt by overall weakness in the sector, yet you consider the shares to be cheap. Could you expand on that view?

Carl Delfeld: Sure, sure. Joy Global is a company that, sort of, came out of the ashes of the old Allis Chalmers Company in Milwaukee, Wisconsin, which was a powerhouse in its day.

Joy Global is primarily in the mining machinery business, which, you know, is kind of, pretty much, at the bottom of its cycle, which got our attention. The stock is down 40% over the last two years. It's down 18% this year. You know, while the S&P is up 30% or so, so it's definitely trailing.

The valuation is quite attractive. It's trading right at eight times earnings, forward earnings. That's about half what Caterpillar (CAT) is trading at—and, you know, the earnings have not been that great.

But we really see the cycle beginning to turn, and the other thing I like about JOY is that they don't just make money from selling new mining machinery.

A lot of their business is reoccurring revenue from after-market services, maintenance, and so on, so that cushions the blow. Even in 2008 and 2009, they made money, which is pretty impressive. CAT, you know, lost quite a bit of money that year.

Page 1 | Page 2 | Next Page The expert featured in this column, Carlton Delfeld, may or may not own positions in any investment vehicle mentioned here. The views and opinions expressed are his or her own.

Tuesday, December 17, 2013

Jim Cramer's 6 Stocks in 60 Seconds: LLY GIS RRC FINL AXP YHOO (Update 1)

Check out Jim Cramer's latest trading recommendations on "Action Alerts Plus". (Updates from 11:13 a.m. ET with closing information.)

NEW YORK (TheStreet) -- Here's what Jim Cramer had to say on CNBC's "Squawk on the Street" Tuesday.

Based on a $65 price target, Eli Lilly (LLY) would appear "very inexpensive," Cramer said. But he doesn't think the company has a great product pipeline. LLY ended the day 3 cents higer at $49.22.

According to Cramer, people don't think General Mills (GIS) has natural and organic foods, which is "hurting" the stock. He noted Morgan Stanley considers GIS "challenged." GIS fell 33 cents to $49.58.

The fact that Range Resources (RRC) has failed to move higher on a positive note from Wells Fargo concerns Cramer. He suggested the oil and gas exploration industry has "run too much." RRC fell 41 cents to $79.76. Bank of America upgraded Finish Line (FINL) to buy from sell. Cramer said he'd "buy the stock" based partly on how well the brand is doing in Macy's (M) locations. FINL rose 1.9% to $25.89.

American Express  (AXP) recently reported some of its credit numbers, and Cramer suggested that AXP's likelihood was "very, very small" for a default. AXP is a holding in Cramer's charitable portfolio, Action Alerts PLUS. AXP fell 41 cents to $84.11. Citigroup raised its price target on Yahoo! (YHOO) to $46 from $39. Cramer said that when investors add up the value from all of YHOO's different business segments, it commands a premium valuation. YHOO fell nearly 1% to $39.51. To sign up for Jim Cramer's free Booyah! newsletter, with all of his latest articles and videos, please click here. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell

Stock quotes in this article: LLY, GIS, RRC, FINL, M, AXP, YHOO 

Monday, December 16, 2013

Stocks to Watch: Sprint, AIG, Solta Medical

Among the companies with shares expected to actively trade in Monday’s session are Sprint Corp.(S), American International Group Inc.(AIG) and Solta Medical Inc.(SLTM)

Sprint is working toward a possible bid for rival T-Mobile US Inc.(TMUS), the Wall Street Journal reported, setting the stage for a telecom merger that if permitted by regulators would leave the U.S. wireless market dominated by three big companies. Sprint is studying regulatory concerns and could launch a bid in the first half of next year, the Journal reported. Sprint shares were up 4% to $8.77 premarket and T-Mobile was down 14 cents at $27.50. American depositary shares of Deutsche Telekom AG(DTE.XE), which holds a majority stake in T-Mobile, were up 2.8% at $16.05.

AIG confirmed it will sell its stake in International Lease Finance Corp to aircraft-leasing company AerCap Holdings N.V(AER). for $5.4 billion in cash and stock.

Endo Health Solutions Inc.(ENDP) agreed to acquire pharmaceutical company NuPathe Inc.(PATH) for about $105 million to gain the company’s new migraine treatment. Endo will acquire NuPathe for $2.85 per share, a 24% premium to its close of $2.30 on Friday. NuPathe shareholders will receive rights to receive additional cash payments of up to $3.15 per share if the company’s migraine treatment Zecuity meets certain sales milestones. NuPathe shares were up 51% at $3.48 in premarket trading.

Harvest Natural Resources Inc.(HNR) agreed to sell all the company’s interest in Venezuela for $400 million in cash, as the energy company moves forward with its plans to sell itself.  Shares were up 24% at $4.89 premarket.

Valeant Pharmaceuticals International Inc.(VRX.T) agreed to acquire medical device company Solta Medical Inc. (SLTM) for $250 million to increase its offerings in the growing aesthetic medicine market. Valeant is offering Solta shareholders $2.92 a share, a 40% premium to its Friday close of $2.09. Solta shares were up 39% at $2.91 premarket.

Allegheny Technologies Inc.(ATI) intends to close a Connecticut facility in 2014, a move the metal processor said will result in a $9.2 million charge to be recorded in the fourth quarter.

Asset management firm The Carlyle Group LP(CG) agreed to invest $200 million over three years to fund an oil-and-gas exploration companies offshore drilling programs in New Zealand and the Union of the Comoros.

Sunday, December 15, 2013

Are Centene's Earnings Worse Than They Look?

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Centene (NYSE: CNC  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Centene generated $217.4 million cash while it booked net income of $1.9 million. That means it turned 2.5% of its revenue into FCF. That doesn't sound so great.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Centene look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With questionable cash flows amounting to only 6.3% of operating cash flow, Centene's cash flows look clean. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 9.1% of cash flow from operations. Overall, the biggest drag on FCF came from changes in accounts receivable, which represented 41.8% of cash from operations. Centene investors may also want to keep an eye on accounts receivable, because the TTM change is 14.5 times greater than the average swing over the past 5 fiscal years.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Is Centene the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.

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Friday, December 13, 2013

Work the (office party) room

Office holiday party fiascos   Office holiday party fiascos (Money Magazine) Wouldn't it be nice to have a friend at the top of the corporate ladder? Mark your calendar for the office holiday party, your annual chance at cocktail chatter with company brass.

"Take advantage of being in the same room as your CEO or division director," says Miriam Salpeter, co-author of 100 Conversations for Career Success. Making nice with key executives can help you gain visibility you can leverage later for new projects or even promotions. Use these tricks to make no-stress small talk with the big shots.

Study your prey. Make a list of three execs you'd like to meet, focusing on those with influence to help you ascend. Research each one's background online.

"Look for commonalities you can use as conversation starters," says Salpeter. (Maybe you both attended a Big East college, for example.) Ply co-workers for more information. (Does the veep follow basketball?)

Make a calculated approach. The best way in: Ask your supervisor for an introduction. This establishes instant credibility, says Hallie Crawford, a career coach in Atlanta.

Boss not game? Approaching the target one-on-one is ideal but may not be possible. To join a group conversation, "simply ask if you can increase the size of the circle," says Terri Griffith, a management professor at Santa Clara University. Introduce yourself by making what Diane Windingland, author of Small Talk Big Results, calls a "role pitch": Sum up in a sentence what you've done for the company of late. So rather than "I'm a sales director," add on "I developed the campaign for our new product line."

Steer the conversation. Remember, this isn't a meeting, but a party. "It's about building relationships, not about making transactions," says Ivan Misner, chairman of business networking organization BNI. So quickly shift away from shop talk; personal conversation makes for a more memorable connection.

Use your research to formulate an open-ended question like, "Do you think Marquette has a shot this year against Georgetown?"

Who's getting hired and what does it pay?   Who's getting hired and what does it pay?

Exit gracefully. Keep the conversation brief so you don't monopolize the person's time. Debra Fine, author of The Fine Art of Small Talk, recommends signaling that the chat is almost over. For example, "I must get another of the! se canapés, but before I do, I'd love to know which NCAA player you think is the one to watch this year."

In January -- when everyone's back to business -- follow up with an email recapping the meeting and offering a big idea or help on future projects. Says Windingland: "Never miss a chance to solidify a relationship with a decision-maker." To top of page

Tuesday, December 10, 2013

LPL Welcomes Back $200M Team; Ray James Adds $220M Wells Group

LPL Financial (LPLA) said Monday that NetVEST Financial, a team with about $200 million in client assets that left to affiliate with Ameriprise Financial (AMP) about a year ago, has rejoined the fold. Also, Raymond James said recently that it recruited a $220 million team from Wells Fargo.

Based in Scottsdale, Ariz., NetVEST is led by John Cartolano, who has 25 years in the business. The firm works with mass affluent and high-net-worth clients, with an emphasis on the use of different trust structures to support multigenerational wealth planning goals.

“We are delighted to see John and his team back to LPL,” said Bill Morrissey, executive vice president of business development at LPL Financial, in an interview with ThinkAdvisor.

“They have been growing their practice by leaps and bounds and came to an inflection point in terms of their growth and scale,” Morrissey said. “They wanted the right framework, talked to a few broker-dealers and ultimately decided to return to LPL, because we offer them the best platform to use to grow their business.”

The LPL executive says that it does its best to stay in touch with financial advisors that have left to affiliate with other broker-dealers. “It’s a small industry. We want to attract valuable advisors, and the best clients value what we do,” he said.

“I am delighted to affiliate with LPL Financial, a firm that has supported me for many years in the past, and which I am privileged to partner with once more,” said NetVEST President & CEO Cartolano, in a statement. “Central to this decision is my recognition of LPL Financial’s commitment to everything that is truly crucial for our sustained success within the financial advisory industry.”

While LPL doesn’t offer advisors the “lowest prices” in the industry, it does give them “the highest value,” according to Morrissey. Given NetVEST’s fast-paced growth and comprehensive wealth-management approach, he adds, the team needed “robust technology to scale its business and draw really efficient and comprehensive client support” and other services.

Raymond James’ Newest Team

Raymond James (RJF) said Thursday that it had added a team of three ex-Wells Fargo (WFC) financial advisors: Doug Noble, Greg Bowden and Rod Dahl of Georgetown, Texas, which is near Austin. The advisors, who all have the CFP designation, manage a combined $220 million in client assets and have yearly sales and commissions of $1.3 million.

The team, Goodwater Wealth Management Group, is now part of Raymond James’ Advisor Select channel for advisors who want more independence but also the stability of remaining employees of a broker-dealer.

“Doug, Greg and Rod are a wonderful addition to the Advisor Select platform,” said Chris Davitt, vice president and director of Advisor Select, in a statement. “Their desire to establish their own freestanding office and boutique practice while at the same time remaining W-2 employees of Raymond James made them a perfect fit for Advisor Select.

“We were looking for a firm with the same culture and values that we believed in and had experienced in our early days at A.G. Edwards,” said Noble, in a press release. (Noble, a West Point graduate, began his career in 2005 at A.G. Edwards.)

“We chose the Advisor Select business model,” added Noble, “because we wanted to control our own destiny in terms of how we run and grow our practice and the investments we make in our business. But we didn’t want to take on all the back-office headaches that come with total independence. The Raymond James independent employee model offered through Advisor Select was the perfect answer to our needs.” 

Bowden became an advisor with A.G. Edwards in 2006, while Dahl started his financial planning career with A.G. Edwards in 2000.

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