Thursday, February 20, 2014

Gap raising its minimum pay to $10/hour

gap employees

Gap is raising the pay of its U.S. employees to at least $10 an hour by next year.

NEW YORK (CNNMoney) Gap Inc. is raising the minimum pay for 65,000 U.S. employees, winning praise from President Obama who is pushing to raise the nation's minimum wage by a similar amount.

Gap CEO Glenn Murphy announced that the retailer will start paying its U.S. workers at least $9 an hour in June of this year, and $10 an hour in June 2015.

"To us, this is not a political issue," he said in a a statement. "Our decision to invest in front line employees will directly support our business, and is one that we expect to deliver a return many times over."

Gap (GPS, Fortune 500) -- which operates Gap, Old Navy, Banana Republic and Athleta stores -- has the overwhelming majority of its more than 3,000 stores in the United States. It has a total of 136,000 workers worldwide, according the company's most recent filing, with about 90,000 of those workers in the United States.

The 65,000 U.S. workers affected by the decision are now making less than $10 an hour. The new pay scale applies to both full-time and part-time employees. While the company said the majority of its U.S. employees are already paid more than the minimum wage, it did not have a precise number being paid $7.25 an hour.

President Obama, who has proposed raising the minimum wage to $10.10 from the current $7.25 an hour within three years, issued a statement late Wednesday praising the move by Gap.

"In my State of the Union address, I asked more businesses to do what they can to raise their employees' wages," the President said. "Today, I applaud Gap Inc. for announcing that they intend to raise wages for their employees beginning this year. But only action from Congress can make a difference nationwide."

The legislation has faced strong opposition from many Republicans in Congress as well as business groups such as the National Retail Federation, which argue that a higher minimum wage will result in fewer jobs being available for low-skilled workers. But a group of 75 leading economists, including seven with Nobel prizes, has backed the proposal for a higher minimum.

The Congressional Budget Office, a nonpartisan arm of Congress that assesses the impact of proposed legislation, issued a report Tuesday in which it said raising the minimum wage would raise 900,000 people out of poverty but could cost 500,00! 0, as employers cut back staff due to the higher costs.

Lew: Wage hike is right thing to do   Lew: Wage hike is right thing to do

Gap did not give any estimate for how much the higher wage would cost the company, but it said will be able to afford it. The company reported sales of $16.2 billion worldwide in the most recent fiscal year. While it has not yet reported earnings for that fiscal year, it earned just under $1 billion in the nine months through Nov. 2 of last year.

It said the higher wage will improve its ability to "attract and retain a skilled, enthusiastic and engaged workforce." It said that should help its relationship with its customer base as well. To top of page

Wednesday, February 19, 2014

Top 5 Gold Stocks To Watch Right Now

November 12, 2013: U.S. equity markets opened lower Tuesday morning on another day when no U.S. data of interest was released. Tomorrow looks like another quiet day for U.S. data. Most of the big earnings reports are behind us as well, so there�� not a lot for investors and traders to get excited about.

European and Latin American markets closed lower today while Asian markets closed mixed.

Wednesday�� calendar includes speeches by Fed Chairman Ben Bernanke and Cleveland Fed President Sandra Pianalto and the following scheduled data releases and events (all times Eastern):

7:00 a.m. – Mortgage Bankers Association purchase applications 10:00 a.m. – Atlanta Fed business inflation expectations 11:30 a.m. – 4- and 52-week bill auctions 1:00 p.m. – 10-year note auction 2:00 p.m. – Treasury budget

Here are the closing bell levels for Tuesday:

S&P500 1767.68 (-4.21; -0.24%) DJIA 15750.67 (-32.43; -0.21%) NASDAQ 3919.92 (+0.13; flat) 10YR TNOTE 2.775% (-0.21875) Gold $1,271.20 (-9.90; -0.8%) WTI Crude oil $93.04 (-2.10; -2.2%) Euro/Dollar: 1.3435 (+0.0029; +0.21%)

Big Earnings Movers: Hanwha SolarOne Co. (NASDAQ: HSOL) is down 13.9% at $4.36. D.R. Horton Inc. (NYSE: DHI) is up 4.7% at $18.91 on good earnings boosted by land sales.

Top 5 Gold Stocks To Watch Right Now: Iamgold Corporation(IAG)

IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.

Advisors' Opinion:
  • [By Rich Duprey]

    IAMGOLD (NYSE: IAG  ) still has an interest in the�Quimsacocha gold mine it sold to INV Metals last year, which has an indicated mineral resource estimated at 3.3 million ounces gold. China's�Ecuacorriente is also pursing a major copper project at Panantza-San Carlos, and International Minerals will seek out gold and silver at Rio Blanco.

Top 5 Gold Stocks To Watch Right Now: Northgate Minerals Corporation(NXG)

Northgate Minerals Corporation, together with its subsidiaries, engages in exploring, developing, processing, and mining gold and copper deposits in Canada and Australia. Its principal producing assets include 100% interests in the Fosterville and Stawell Gold mines in Victoria, Australia; and the Kemess South mine located in north-central British Columbia, Canada. The company was formerly known as Northgate Exploration Limited and changed its name to Northgate Minerals Corporation in May 2004. Northgate Minerals Corporation was founded in 1919 and is headquartered in Toronto, Canada.

Top 5 Blue Chip Stocks To Buy Right Now: Agnico-Eagle Mines Limited(AEM)

Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. The company primarily explores for gold, as well as silver, copper, zinc, and lead. Its flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. The company was founded in 1953 and is based in Toronto, Canada.

Advisors' Opinion:
  • [By Itinerant]

    Before we continue, we would like to give references to sources that we used liberally for this article: Brian Christie, VP Investor Relations at Agnico-Eagle (AEM), gave a talk at the Denver Gold Group Luncheon on May 6 in Toronto and the presentation can be viewed here. Andrew J Vigar of Mining Associates gave a keynote at the Mines and Money conference in Hong Kong in March 2013 and the presentation is here. The Visual Capitalist has uploaded a relevant presentation on the topic here. And the Break Away Digger has an interesting piece available here. These documents come with a recommendation for your weekend reading from your humble scribe.

Top 5 Gold Stocks To Watch Right Now: Goldcorp Incorporated(GG)

Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It produces and sells gold, silver, copper, lead, and zinc. The company was founded in 1954 and is headquartered in Vancouver, Canada.

Advisors' Opinion:
  • [By Lee Jackson]

    Barrick Gold Corp. (NYSE: ABX), Goldcorp Inc. (NYSE: GG), Kinross Gold Corp. (NYSE: KGC) and Newmont Mining Corp. (NYSE: NEM) are all sold short in the account, in equal lots of 25% each. This provides the investor with the basket of stocks that make up the other part of the trade.

Top 5 Gold Stocks To Watch Right Now: Australian Dollar(AU)

AngloGold Ashanti Limited primarily engages in the exploration and production of gold. It also produces silver, uranium oxide, and sulfuric acid. The company conducts gold-mining operations in South Africa; continental Africa, including Ghana, Guinea, Mali, Namibia, and Tanzania; Australia; and the Americas, which include Argentina, Brazil, and the United States. It also has mining or exploration operations in the Democratic Republic of the Congo, Guinea, and Colombia. As of December 31, 2010, the company had proved and probable gold reserves of 71.2 million ounces. The company has a strategic alliance with Thani Dubai Mining Limited to explore, develop, and operate mines across the Middle East and parts of North Africa. AngloGold Ashanti Limited, formerly known as Vaal Reefs Exploration and Mining Company Limited, was founded in 1944 and is headquartered in Johannesburg, South Africa.

Advisors' Opinion:
  • [By Rich Duprey]

    Considering the work stoppages and violent clashes that have become the norm at South African precious-metals mines, perhaps the miners were wondering exactly what they were getting for their money. An expose by South Africa's Daily Maverick has uncovered a system where miners such as AngloGold Ashanti (NYSE: AU  ) and BHP Billiton (NYSE: BHP  ) surreptitiously paid for the salaries of the heads of the local mining unions to keep the mine workers in line, and it's only because the miners sought to end the "uncomfortable arrangement" with the unions that the matter came to light.

Top 5 Gold Stocks To Watch Right Now: Claude Resources Inc.(CGR)

Claude Resources Inc. engages in the acquisition, exploration, and development of precious metal properties, as well as production and marketing of minerals in Canada. It primarily explores for gold in northern Saskatchewan and northwestern Ontario. The company holds interests in the Seabee gold mine located at Laonil Lake, northern Saskatchewan; and the Madsen property that consists of 6 contiguous claim blocks totaling approximately 10,000 acres, located in the Red Lake Mining District of northwestern Ontario. It also holds interest in the Amisk Gold project, which covers an area of 13,800 hectares in the province of Saskatchewan. The company was founded in 1980 and is based in Saskatoon, Canada.

Top 5 Gold Stocks To Watch Right Now: Newmont Mining Corporation(Holding Company)

Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company?s assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. As of December 31, 2009, it had proven and probable gold reserves of approximately 93.5 million equity ounces and an aggregate land position of approximately 27,500 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

Top 5 Gold Stocks To Watch Right Now: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

Top 5 Gold Stocks To Watch Right Now: Golden Star Resources Ltd(GSS)

Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.

Advisors' Opinion:
  • [By Patricio Kehoe] ating price of the commodity, along with the geopolitical risks involved in mining in African nations such as Ghana, are just two of the obstacles the firm is facing. In addition, as one of the smallest gold mining firms in the industry, with a market cap of just $122 million, Golden Star has had a very difficult time financing its latest expansion projects. With share prices tumbling towards all-time lows, gurus such as Steven Cohen, Chuck Royce and Arnold Schneider have already sold out their positions in the troubled firm.

    Why Have Gurus Lost Faith in Golden Star?

    Despite aggressive expansion over the past decade, the Toronto-based gold mining firm has not been able to take advantage of its increased production output. Gold prices might have exploded over a ten-year period, yet the recent six-month decline has put a huge strain on Golden Star. The expedited maturation of its mines is particularly troubling, since the accelerated extraction rates, which allowed for short-term profits, are now falling considerably. The impact of the company�� excessive overproduction on profits and growth is clear: decreasing gold reserves mean less production, and thus reduced revenue for the gold miner. When the decline in metal prices are taken into account, the outlook is even more grim.

    In addition to overexpansion at the wrong time, Golden Star�� position has weakened due to its comparably less efficient operations. Unlike industry peers, such as IamGold Corp. (IAG) or Gold Fields Ltd. (GFI), the majority of the Toronto-based miner�� assets contain refractory ore, which is far more expensive to extract than non refractory ore. And, in an attempt to switch production to the lower cost gold ore, and thus increase margins, Golden Star has depleted its mines��non refractory ore. With low reserves and mounting cash costs, the firm inevitably turned to new acquisitions.

    Overpriced Acquisitions and Geopolitical Risk

    The purchase

  • [By Rich Duprey]

    Clash of the titans
    When bears are raging on the gold bullion market, it's not surprising to see gold stocks getting mauled as well. Golden Star Resources (NYSEMKT: GSS  ) was the biggest loser in the sector, losing a quarter of its market cap on no company-specific news, though a report last Friday indicated that a large number of hedge funds had recently dumped their positions in the mid-tier miner. Yet it wasn't all that much better among the majors, either, as Barrick Gold (NYSE: ABX  ) fell almost 13% and Kinross Gold (NYSE: KGC  ) was down 14%.

  • [By Sean Williams]

    Golden Star Resources (NYSEMKT: GSS  )
    It's simple physics: The bigger they are, the harder they fall. When gold prices nosedived earlier this week, gold miners with historically higher operating costs took the brunt of the hit. For the most part, that meant that development-stage miners, and those operating in Africa, where labor and political costs make cost-effective mining a challenge, took it on the chin. Possibly no stock was hammered more than Golden Star Resources, a gold miner in Ghana, which lost about one-quarter of its value on Monday alone.

Top 5 Gold Stocks To Watch Right Now: CME Group Inc.(CME)

CME Group Inc. operates the CME, CBOT, NYMEX, and COMEX regulatory exchanges worldwide. The company provides a range of products available across various asset classes, including futures and options on interest rates, equity indexes, energy, agricultural commodities, metals, foreign exchange, weather, and real estate. It offers various products that provide a means of hedging, speculation, and asset allocation relating to the risks associated with interest rate sensitive instruments, equity ownership, changes in the value of foreign currency, credit risk, and changes in the prices of commodities. CME Group owns and operates clearing house, CME Clearing, which provides clearing and settlement services for exchange-traded contracts and counter derivatives transactions; and also engages in real estate operations. Its primary trade execution facilities consist of its CME Globex electronic trading platform and open outcry trading floors, as well as privately negotiated transact ions that are cleared and settled through its clearing house. In addition, the company offers market data services comprising live quotes, delayed quotes, market reports, and historical data services, as well as involves in index services business. CME Group?s customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, and governments. It has strategic partnerships with BM&FBOVESPA S.A., Bursa Malaysia Derivatives, Singapore Exchange Limited, Green Exchange, Dubai Mercantile Exchange, Johannesburg Stock Exchange, and Bolsa Mexicana de Valores, S.A.B. de C.V., as well as joint venture agreement with Dow Jones & Company. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group was founded in 1898 and is headquartered in Chicago, Illinois.

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

    CME Group Inc. (NASDAQ: CME) was raised to Outperform from Market Perform at Keefe Bruyette & Woods.

    Cypress Semiconductor Corp. (NASDAQ: CY) was maintained as Buy, but earnings estimates were cut and the price target was cut to $13 from $15, by Sterne Agee. Wedbush downgraded it to Neutral from Buy after the warning.

  • [By Paul Ausick]

    Big Earnings Movers: Kellogg Co. (NYSE: K) is up 0.7% at $62.72 after announcing a restructuring program. CME Group Inc. (NASDAQ: CME) is down 1.2% at $73.77 after reporting earnings this morning. Realogy Holdings Corp. (NYSE: RLGY) is up 7.7% at $43.79.

  • [By Eric Volkman]

    CME Group (NASDAQ: CME  ) is staying consistent for the moment in terms of shareholder payouts. The company has declared a dividend for its Q2 of $0.45 per share, to be paid on June 25 to shareholders of record as of June 10.�That amount matches CME Group's previous distribution, which was paid at the end of March.

  • [By Jon C. Ogg]

    We still have many key oil and energy companies reporting in the week ahead but we have now seen the sector leaders report earnings. Earnings previews have been prepared for the following stocks:

    CME Group Inc. (NASDAQ: CME) Hertz Global Holdings Inc. (NYSE: HTZ) Kellogg Company (NYSE: K) DirecTV (NASDAQ: DTV) Office Depot Inc. (NYSE: ODP) and OfficeMax Incorporated (NYSE: OMX) Tesla Motors Inc. (NASDAQ: TSLA) T-Mobile US, Inc. (NYSE: TMUS) American Water Works Company Inc. (NYSE: AWK) Duke Energy Corp. (NYSE: DUK) QUALCOMM Inc. (NASDAQ: QCOM) Time Warner Inc. (NYSE: TWX) Whole Foods Market Inc. (NASDAQ: WFM) Groupon Inc. (NASDAQ: GRPN) Molycorp Inc. (NYSE: MCP) The Walt Disney Company (NYSE: DIS) Priceline.com Inc. (NASDAQ: PCLN) The Wendy’s Company (NYSE: WEN)

    CME Group Inc. (NASDAQ: CME) reports earnings on Monday morning. With all of the exchange mergers of the last decade this remains one of the dominant exchanges. Estimates are $0.73 EPS and $713.3 million in revenue. Keep in mind that this exchange is now worth $25 billion. At $74.70, the consensus analyst price target is only just barely higher at almost $75.50.

Top 5 Gold Stocks To Watch Right Now: Thompson Creek Metals Company Inc.(TC)

Thompson Creek Metals Company Inc., through its subsidiaries, engages in mining, milling, processing, and marketing molybdenum products in the United States and Canada. The company?s principal properties include the Thompson Creek Mine and mill in Idaho; a metallurgical roasting facility in Langeloth, Pennsylvania; and a joint venture interest in the Endako Mine, mill, and roasting facility in British Columbia. It also holds interests in development projects comprising the Davidson molybdenum property and the Berg copper-molybdenum-silver property located in northern British Columbia; the Howard?s Pass property, a lead and zinc project situated in the Yukon territory-northwest territories border; and the Maze Lake property, a gold project located in the Kivalliq district of Nunavut. The company produces molybdenum products, primarily molybdic oxide and ferromolybdenum, as well as soluble technical oxide, pure molybdenum tri-oxide, and high purity molybdenum disulfide. As o f December 31, 2010, its consolidated recoverable proven and probable ore reserves totaled 462.2 million pounds of contained molybdenum in the Thompson Creek Mine and the Endako Mine. The company was formerly known as Blue Pearl Mining Ltd. and changed its name to Thompson Creek Metals Company Inc. in May 2007. Thompson Creek Metals Company Inc. is based in Denver, Colorado.

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

    Thompson Creek Metals Co. Inc. (NYSE: TC) was at 54% discount to its book value of $8.30 per share at the time, and the stock price of $3.90 is up from $3.03 Deutsche Bank’s team nailed upside of more than 28% here. Its price target was $4 at the time versus a consensus target of $4.50 at the time. The 52-week range here is $2.42 to $4.55, but we would point out that the consensus price target is $3.93.

  • [By Selena Maranjian]

    Beaten-down companies that you think are likely to recover strongly are also good candidates. Molybdenum miner Thompson Creek Metals (NYSE: TC  ) , for example, sports average annual losses of 35% over the past five years, and carries substantial debt, but molybdenum's long-term outlook is promising, with price increases likely, and the company has a promising gold and copper mine on track to start producing by the end of the year. Freeport-McMoRan Copper & Gold (NYSE: FCX  ) is another major molybdenum player, with considerable operations in other metals, as well -- along with new investments in oil and gas production.

Top 5 Gold Stocks To Watch Right Now: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:
  • [By Doug Ehrman]

    It is no secret that precious metals companies have been taking a pounding for some time now. The SPDR Gold Trust (NYSEMKT: GLD  ) and iShares Silver Trust (NYSEMKT: SLV  ) , the gold and silver ETFs, have been hard hit and operating companies like First Majestic (NYSE: AG  ) and Barrick Gold (NYSE: ABX  ) have been hit even harder. Through all of these struggles, and in some cases because of them, one precious metals company continues to look attractive for the long term: Silver Wheaton (NYSE: SLW  ) .

  • [By Doug Ehrman]

    Despite the weakness seen in precious metals a few weeks ago, silver has been relatively stable ever since mid-April, with the iShares Silver Trust (NYSEMKT: SLV  ) trading in a dollar-wide range ever since. With the presidents of the Chicago and Philadelphia Federal Reserve banks��releasing conflicting statements, turmoil may be just around the corner. Miners like Pan American (NASDAQ: PAAS  ) and First Majestic (NYSE: AG  ) are still facing operating challenges, while silver streaming darling Silver Wheaton (NYSE: SLW  ) struggles as well.

  • [By Doug Ehrman]

    While many precious-metals companies have been in a slump of late, there is one that belongs perpetually in your portfolio: Silver Wheaton (NYSE: SLW  ) . The company is not like other miners -- including Pan American Silver (NASDAQ: PAAS  ) and First Majestic (NYSE: AG  ) -- in that it has a unique business plan that insulates it against many of the vagaries of the mining business. Moreover, because silver will always have a significant industrial demand component, even with the heightened volatility you see in the silver market, maintaining exposure to silver is appropriate.

  • [By Doug Ehrman]

    In terms of individual companies, there are several good choices, but these can behave very differently. Pan American Silver (NASDAQ: PAAS  ) , for example, missed revenue expectations and beat earnings expectations in its last earnings release. But despite the beat, EPS shrank considerably from a year earlier on a GAAP basis. The stock has been fairly flat ever since. Conversely, First Majestic (NYSE: AG  ) reported strong revenue growth and a small bump in profits, sending the stock higher since the announcement. First Majestic reported increased cash costs and tightening margins, largely driven by lower silver prices. Each of these companies faces pressure from increasing production costs and environmental concerns.

Top 5 Gold Stocks To Watch Right Now: NEW GOLD INC.(NGD)

New Gold Inc. engages in the acquisition, exploration, extraction, processing, and reclamation of mineral properties. The company primarily explore for gold, silver, and copper deposits. Its operating properties include the Mesquite gold mine in the United States; the Cerro San Pedro gold-silver mine in Mexico; and the Peak gold-copper mine in Australia. The company also has development projects, including the New Afton gold, silver, and copper project in Canada; and a 30% interest in the El Morro copper-gold project in Chile. The company was formerly known as DRC Resources Corporation and changed its name to New Gold Inc. in June 2005. New Gold Inc. was founded in 1980 and is headquartered in Vancouver, Canada.

Advisors' Opinion:
  • [By Ben Levisohn]

    Hamed singles out Goldcorp (GG) and Yamana Gold (AUY) as two companies that have strong production growth, falling costs, declining capital obligations and less debt than competitors. New Gold (NGD), meanwhile, should have the lowest all-on costs in the group at $731 an ounce, but its capital spending is likely to notes, Hamed says. Hamed rates Goldcorp and Yamana Overweight, while New Gold is rated Equal Weight.

  • [By Ben Levisohn]

    Bridges favorite stocks include Goldcorp, Newmont, Eldorado Gold (EGO) and New Gold (NGD).

    Note, however, that these recommendations are all qualified in one way or another. Investors should keep that in mind before going all in on the gold miners.

  • [By Ben Levisohn]

    One group of stocks not feeling the optimism today: Gold miners. With fewer concerns that a U.S. attack on Syria will be disruptive and more evidence that tapering will begin this month, the price of the precious metal has dropped 1.6% to $1,388.90 an ounce–and gold stocks are falling with it. New Gold (NGD), for one, has dropped 3% to $6.55, while Barrick Gold (ABX) has fallen 1.3% to $19.25.

  • [By Ben Levisohn]

    Even bad news has failed to dent the rise in gold stocks today. NewGold (NGD), for instance, has gained 1.8% to $7.49 despite the fact that the wall of one of its mines collapsed. The Wall Street Journal has the details:

Tuesday, February 18, 2014

Lululemon Athletica: What’s With All the Positivity?

It’s been a painful 12 months for shares of Lululemon Athletica (LULU)–but is the stock working out the kinks? It could be, as another pair of analysts sent good vibes its way.

For starters, Oppenheimer upgraded Lululemon’s shares to Outperform from Perform, citing the possibility of a pickup in sales growth in the quarters ahead. Then along came William Blair’s Sharon Zackfia and team, who see  sales accelerating in the months ahead. They explain:

While we believe much of 2013 for lululemon can be best characterized as self-inflicted pain (sheer luon, unexpected CEO resignation, ill-worded televised chairman comments), it is worth noting that lululemon is still likely to easily outperform the vast majority of retail in 2013, with an approximate 4% brick-and-mortar comp gain and an approximate 10% comp gain including e-commerce. With some encouraging early data points on customer reception of spring product, we see the potential for comps to begin improving as early as the first quarter and view the stock as a compelling risk/reward opportunity from current levels of 22 times our 2014 estimate.

Still, Lululemon Athletica faces a big challenge from the Gap’s (GPS) Athleta brand. Belus Capital’s Brioan Sozzi explains:

One way to win an already bloody war?  Find a new tactic that will surprise the entity being fought with such crazy effort.  In many respects, that's precisely what Gap's more rugged activewear brand Athleta has begun to execute on in its heated battle with the calmer, yoga centric Lululemon.  How so?  By offering very unique in-store workout classes each day, week after week.  Whereas Lululemon, according to its website "every week, Lululemon stores and showrooms push aside their products, unroll yoga mats, and turn their space into instant yoga studios", Athleta's scheduled class differentiation keeps its stores exciting.  Most importantly, it brings in consistent traffic of folks with likely different personal preferences, meaning the company has the opportunity to show that its products are more versatile compared to Lululemon.  More versatility, more value in the mind of the consumer.

Nomura's Robert Drbul initiated Lululemon as a Buy on Feb. 13, while RBC upgraded the company on Feb. 7 and Citigroup upgraded Lululemon on Feb. 6.

Shares of Lululemon have gained 0.8% to $51.47 at 3:31 p.m., while the Gap is little changed at $42.33. Nike (NKE) has risen 0.3% to $75.32, while Under Armour (UA) has jumped 1.4% to $107.51. Maybe it wasn’t the uniforms after all.

Monday, February 17, 2014

Hearing WSJ's Hilsenrath Has Said Fed Minutes Could Show an Amicable Taper Decision

"Minutes of the Federal Reserve's Dec. 17-18 policy meeting could show that the Fed's big decision last month to start winding down an $85 billion monthly bond-buying program was a mostly amicable event. The Federal Reserve releases minutes of the December policy meeting today at 2 p.m. In the past, minutes have shown high levels of discord among officials about tough policy decisions. But there doesn't appear to have been a great deal of debate at this meeting. Fed Chairman Ben Bernanke signaled at his post-meeting press conference that there was broad agreement about the action. When asked if the decision was a close call, Mr. Bernanke didn't take the bait. Instead, he said "there was a pretty widespread view" that the Fed's criteria for pulling back the program were on course to being met. That isn't to say there was no disagreement. Boston Fed President Eric Rosengren dissented, because he thought scaling back the program back was premature and some Fed "hawks" wanted to pull back the program more aggressively. But broadly many officials got what they wanted. Internal skeptics of the program got a roadmap for its eventual end, while supporters were assured it would be a gradual process that could be reversed if needed.

This is an important development for Fed Vice Chairwoman Janet Yellen, who will become Fed chairwoman Feb. 1, after Mr. Bernanke's term ends. It ensures that the first few months of her term, at least, won't be consumed with the difficult task of building consensus for action. That has already happened. Her first task will be carrying through with the plan, or altering it if the economy veers off the course the Fed expects."

By Jon Hilsenrath

Posted-In: News Futures Federal Reserve Markets

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Sunday, February 16, 2014

Top 10 cities with the highest tax rates

Although a little late this year, due largely to the federal government's 17-day shutdown in 2013, tax season is here. And, according to a new report, what you owe in taxes could be largely determined by where you live.

The report, released by the Office of Revenue Analysis of the government of the District of Columbia, reviewed the estimated property, sales, auto and income taxes for a hypothetical family at various income levels in 2012 in the largest city within each state. City tax burdens vary widely. A family of three earning $75,000 in Cheyenne, Wyo., paid just $3,475, or 4.6% of its income, in state and local taxes. In Bridgeport, Conn., a family of three earning $75,000 paid $16,333, or 21.8% of its income — a total that does not even include federal taxes.

Not surprisingly, tax rates influence overall tax burdens significantly. This is especially true for property taxes. Seven of the cities with the highest tax burdens also had among the 10-highest property tax rates, according to the Office of Revenue Analysis. Homeowners in Columbus, Ohio, which had the fifth-highest tax burden in the nation, paid an effective rate of $3.57 for every $100 in home value, the highest such rate in the U.S.

Lori Metcalf, fiscal analyst at the Office of Revenue Analysis, noted in an interview with 24/7 Wall St. that property taxes tended to comprise a higher share of state and local tax burdens. Because of this, "the trend that you see in the property tax should be reflected in the overall burden."

Another tax that is often important in determining overall tax burden is the income tax. This is especially true for cities with the lowest tax burdens, seven of which are located in states that do not have an income tax. Only one of the five cities with the lowest tax burdens, Billings, Mont., is not located in a state that has no income tax.

Yet the relationship between income taxes and higher tax burdens is not as straightforward. To highlight this, Metcalf noted that higher incomes fa! milies usually live in higher-value homes. "This means that when you pay income taxes you'll have a larger deduction because you'll have a larger property tax based on a more expensive home and a larger mortgage interest deduction," Metcalf explained. As a result of this deduction, homeowners' income tax burdens are often reduced, obscuring the relationship between income taxes and overall tax burdens.

Several factors not reviewed by the Office of Revenue Analysis, whose study focused primarily on the characteristics of tax systems, may play a role in determining tax burdens. One such potential factor is unemployment. In many cities with low tax burdens, the unemployment rate was also very low. Sioux Falls, S.D., and Billings, Mont., had among the lowest unemployment rates in the nation in 2012. At the other end of the spectrum, Detroit, Mich., and Providence, R.I., had both hefty tax burdens and high unemployment.

A number of the cities with the lowest tax burdens were located in states that are considerably less densely populated, such as Alaska, Wyoming, and South Dakota. Even some of the cities themselves are in less densely populated metro areas. Birmingham, Ala., had one of the lowest tax burdens in the U.S. and was located in the the least densely populated metro area of any reviewed. By comparison, many of the cities with high tax burdens are located in more densely populated parts of the country, such as the Northeast.

While this falls outside the scope of the report, it is possible that the reason areas with low population density have lower tax burdens is because the cost of running these cities is less. Local governments with fewer residents can spend less on government services. As a result, the government does not have to make as much in taxes.

Several low tax burden cities were also located in states that had a relative abundance of fossil fuels, including oil, natural gas, and coal. Houston, Tex., is located in the nation's top state for oil and natural gas produc! tion. Che! yenne is the largest city in Wyoming, which accounts for a large portion of the nation's coal output. A 2012 study by the National Conference of State Legislators found that Alaska, Montana, and Wyoming, all of which have cities with low tax burdens, relied on taxing oil and gas activity for much of their revenue.

Based on the Office of Revenue Analysis' report: "Tax Rates and Tax Burdens in the District of Columbia — A Nationwide Comparison," 24/7 Wall St. reviewed the cities where a hypothetical family of three in different income brackets had the highest and the lowest combined tax burdens. To calculate tax burden, the report identified four different types of taxes: income, property, automobile, and sales. The report examined tax systems in the largest city in each state, as well as in Washington, D.C. All estimates are for the 2012 fiscal year. Median housing value and median income data used by the report to determine property value are for metro areas. When two cities were located within the same metro area, county level data was used. 24/7 Wall St. also reviewed income figures for these areas from the U.S. Census Bureau, as well as area unemployment rates as of 2012 from the Bureau of Labor Statistics.

These are the cities with the highest taxes:

10. Wilmington, Del.

• Taxes for family earning $25,000: $2,296 (2nd lowest)
• Taxes for family earning $150,000: $20,332 (9th highest)
• Unemployment rate: 8.6%

Delaware is one of only five states in the U.S. that does not impose a sales tax. The state, including Wilmington, however, makes up for the lack of sales tax in other ways, such as property taxes. A hypothetical family of three earning $150,000 paid $14,701 in property taxes in 2012, more than most cities reviewed. The high property tax burden in Wilmington is likely the result of high property values, rather than taxes, in the city as of 2012. A family of three earning $150,000 that year was assumed to live in a home valued at $831,784, more expen! sive than! in all but three other large cities. In fact, local properties were taxed $1.77 per $100 of property value, on par with much of the country.

9. Detroit, Mich.

• Taxes for family earning $25,000: $3,421 (18th highest)
• Taxes for family earning $150,000: $19,145 (12th highest)
• Unemployment rate: 10.5%

Detroit taxpayers faced a particularly high income tax burden. A hypothetical family of three earning just $25,000 in 2012 paid $446 in state and local income taxes, or 1.8% of its income, more than residents of all but a few other cities. Likely causing this high tax burden on lower-income families is the flat income tax rates both the state of Michigan and Detroit have, while a majority states have increasing tax rates for higher income levels. Additionally, few cities had higher property taxes than Detroit, where the effective tax rate was almost 3%. Property tax burdens would likely be higher if area homes were more valuable. However, Detroit's home were among the least valuable in the nation.

8. Louisville, Ky.
• Taxes for family earning $25,000: $3,118 (23rd lowest)
• Taxes for family earning $150,000: $20,524 (8th highest)
• Unemployment rate: 8.3%

Kentucky uses a graduated income tax system, where residents earning higher incomes paid higher incomes taxes. Local tax rates, however, did not rise with income. Income tax burdens on a hypothetical families earning $25,000 annually were among the highest compared with other large American cities. Property tax burdens were also among the highest in the nation for families in most tax brackets that year. On the other hand, state gas taxes were relatively low, at just 16.4 cents per gallon, less than in the vast majority of cities considered. Tax revenue should also increase if the city's population continues to grow. Louisville's population more than doubled — growing by more than 136% — in the 10 years prior to 2012.

7. Portland, Maine
• Taxes for family earning $25,000: $2,! 788 (12th! lowest)
• Taxes for family earning $150,000: $22,463 (5th highest)
• Unemployment rate: 5.9%

Taxes in Portland are actually quite favorable to lower-income residents. A family of three earning $25,000 had no income tax burden and paid just $568 in the state sales taxes. At the other end of the spectrum, however, wealthier families faced especially high tax burdens. A hypothetical family earning $150,000 spent $22,463, or 15%, of their income on state and local taxes. In 2011, Governor Paul LePage lowered the state's' highest income tax rate and eliminated state income taxes for many low-income Mainers. Maine indexes both its tax brackets and tax exemption for inflation in order to account for price changes. However, higher than average property and gas tax burdens drive up tax burdens for Portland residents. Despite the recent tax reforms, the tax burdens of Portland residents remained relatively high due to high tax burdens on real estate and cars.

6. Providence, R.I.
• Taxes for family earning $25,000: $3,381 (21st highest)
• Taxes for family earning $150,000: $21,294 (7th highest)
• Unemployment rate: 10.3%

Providence's unemployment rate was 10.3% in 2012, third worst out of all cities reviewed. Families of three earning lower incomes can receive a state earned income tax credit. For those families earning $25,000 per year, the income tax burden in Providence was negative. Providence families paid more in automobile taxes and fees than their counterparts in any other large city reviewed. Rhode Island residents were taxed more than 30 cents by the state per gallon of gas in 2012, ninth-highest of any city.

5. Columbus, Ohio
• Taxes for family earning $25,000: $2,953 (17th lowest)
• Taxes for family earning $150,000: $22,333 (6th highest)
• Unemployment rate: 6.1%

A family of three earning $25,000 a year in Columbus faced only an 11.8% tax burden, lower than more than half of all cities reviewed. However, tax burdens for fam! ilies wit! h higher earnings were among the highest in the nation. This is due in large part to the city's real estate taxes. Although the housing values in the city were not especially high, lower than the average for cities reviewed, residents faced especially high property taxes. At 3.57%, Columbus had the highest effective property tax rate of any city.

4. Baltimore, Md.
• Taxes for family earning $25,000: $2,950 (16th lowest)
• Taxes for family earning $150,000: $24,747 (4th highest)
• Unemployment rate: 7.2%

Baltimore area residents are fairly well-off compared with most of the country — median household income was nearly $67,000 in 2012, among the nation's highest. Baltimore's property tax burden is especially high. Families of three earning $150,000 paid $13,772 in property taxes in 2012. Families earning $25,000 had no income tax burden, but those earning $150,000 paid more than 5% of their income in state and local income taxes alone, the sixth-highest percentage of any city reviewed.

3. Milwaukee, Wisc.

• Taxes for family earning $25,000: $3,245 (26th highest)
• Taxes for family earning $150,000: $26,296 (2nd highest)
• Unemployment rate: 7.4%

Like a number of other cities with high tax load, Milwaukee residents faced especially high property tax burdens. The effective property tax rate in the city was 3%, higher than all but a few regions reviewed. Also driving up taxes were the especially high income tax burdens in the city. The state used a graduated income tax system, meaning tax rates are higher for families that earn more, although Milwaukee had no local income taxes.In 2013, the state reformed its tax code, lowering the highest rate as well as the number of overall tax brackets. Governor Scott Walker recently pushed the state assembly to cut both property taxes and and the income tax rate for the state's lowest tax bracket.

2. Philadelphia, Pa.
• Taxes for family earning $25,000: $3,794 (7th highest)
• Taxes for fa! mily earn! ing $150,000: $25,317 (3rd highest)
• Unemployment rate: 8.6%

Philadelphia's poorer families were subject to a much higher tax burden than those in most other large cities. A family of three earning $25,000 in 2012 paid $788 in income taxes that year, more than all but one other large city. The city's property tax burden was also considerably high for most income levels that year. A family whose earnings fell into the $100,000 tax bracket, for example, paid more than $11,806 in property taxes in 2012, second-most among large cities. After a new property tax valuation system was implemented and some residents' tax assessments more than tripled, the city introduced a "gentrification relief program" at the end of 2013. Fuel was also heavily taxed in 2012, with gasoline costing an additional 31 cents per gallon due to state taxes, which were among the highest in the U.S.

1. Bridgeport, Conn.
• Taxes for family earning $25,000: $4,001 (4th highest)
• Taxes for family earning $150,000: $33,208 (the highest)
• Unemployment rate: 7.8%

No large U.S. city had a higher tax burden than Bridgeport, where a family of three earning $150,000 a year paid more than 22% of its income in state and local taxes. However, the metro area, which includes affluent Fairfield County, is wealthier than much of the U.S. and was used to calculate home values and property burdens by the Office of Revenue Analysis. More than 20% of households had an annual income of at least $200,000, more than any other metro area reviewed. The city's high tax burden was due in large part to property taxes, as the area had both high home values and high effective property tax rates. Also propelling the city to the top of the list were Connecticut's relatively high income tax burden of 5.2% on families earning $150,000 per year as well a high tax burden for car owners.

MORE: Top 10 cities with the lowest tax rates

MORE: The 10 richest U.S. presidents

MORE: What stocks does Warren Buffett ow! n now?

24/7 Wall St. is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.


Tuesday, February 11, 2014

3 Stocks Rising on Unusual Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Hated Earnings Stocks You Should Love

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Rocket Stocks to Buy for a Market Bounce

With that in mind, let's take a look at several stocks rising on unusual volume recently.

SodaStream International

SodaStream International (SODA) engages in the development, manufacture, and sale of home beverage carbonation systems that enable consumers to transform ordinary tap water instantly into carbonated soft drinks and sparkling water. This stock closed up 7.6% to $40.45 in Monday's trading session.

Monday's Volume: 2.44 million

Three-Month Average Volume: 1.38 million

Volume % Change: %

>>4 Big Stocks to Trade (or Not)

From a technical perspective, SODA ripped higher here with above-average volume. This stock recently formed a triple bottom chart pattern at $36.68, $36.55 and $35.27. Following that bottom, shares of SODA have started to rebound sharply higher with strong upside volume flows. That move is quickly pushing shares of SODA within range of triggering a big breakout trade. That trade will hit if SODA manages to take out some near-term overhead resistance at $40.90 to its gap-down-day high from last month at $41.62 with high volume.

Traders should now look for long-biased trades in SODA as long as it's trending above Monday's low of $38 or above some more near-term support at $37.28 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.38 million shares. If that breakout hits soon, then SODA will set up to re-fill some of its previous gap-down-day zone that started just above $50.

BJ's Restaurants

BJ's Restaurants (BJRI) owns and operates casual dining restaurants in the U.S. The company's restaurants offer pizzas, beers, appetizers, entrees, pastas, sandwiches, salads, and desserts. This stock closed up 2.6% to $28.66 in Monday's trading session.

Monday's Volume: 1.90 million

Three-Month Average Volume: 440,360

Volume % Change: 305%

>>5 Stocks Poised for Breakouts

From a technical perspective, BJRI trended modestly higher here with above-average volume. This stock has been downtrending for the last month and change, with shares moving lower from its high of $32 to its recent low of $26.98. During that downtrend, shares of BJRI have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of BJRI have started to spike higher off that $26.98 low and the stock now looks ready to reverse its downtrend and possibly enter a new uptrend.

Traders should now look for long-biased trades in BJRI as long as it's trending above that recent low of $26.98 and then once it sustains a move or close above those Monday's high of $28.67 to its 50-day moving average of $29.68 with volume that hits near or above 440,360 shares. If we get that move soon, then BJRI will set up to re-test or possibly take out its next major overhead resistance levels $32 to $32.50, or even $33.61.

RPC

RPC (RES) provides oilfield services and equipment for oil and gas companies engaged in the exploration, production, and development of oil and gas properties in the U.S., Canada, Eastern Europe, Latin America, Africa, the Middle East, China, New Zealand. This stock closed up 3.5% at $17.10 in Monday's trading session.

Monday's Volume: 2.06 million

Three-Month Average Volume: 717,326

Volume % Change: 211%

>>5 Big Trades to Take in February

From a technical perspective, RES jumped notably higher here right above some near-term support at $16.06 with above-average volume. Market players should now look for a continuation move higher in the short-term if RES manages to take out Monday's high of $17.44 to its 50-day moving average of $17.69 with high volume.

Traders should now look for long-biased trades in RES as long as it's trending above some key near-term support at $16.06 and then once it sustains a move or close above $17.44 to $17.69 with volume that's near or above 717,326 shares. If we get that move soon, then RES will set up to re-test or possibly take out its next major overhead resistance levels at $18 to its 52-week high at $19.38. Any high-volume move above those levels will then give RES a chance to tag or trend north of $20.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>3 Hot Stocks on Traders' Radars



>>4 Stocks Under $10 Moving Higher



>>5 Ways to Invest Like a Pension Fund

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


Sunday, February 9, 2014

Reports: Yahoo to partner with Yelp on search

Yahoo is partnering with online review site Yelp to enhance its search results and attract users, according to several reports published over the weekend.

Citing an unnamed person who attended a Yahoo employee meeting Friday, The Wall Street Journal said CEO Marissa Mayer revealed plans to incorporate Yelp's local business listings, user-generated reviews and photos into Yahoo's search engine results. The new feature will be made available in the coming weeks, according to the Journal story.

The new partnership is part of Yahoo's initiative to distinguish itself from market leaders Microsoft Bing and Google. In December, Yahoo's share in the search market was 10.8%, compared to Micorsoft's 18.2% and Google's 67.3%, according to ComScore.

This year, Yahoo's shares have declined 7.9%, but San Francisco-based Yelp has climbed almost 30%.

The specific terms of the Yahoo-Yelp deal couldn't be determined. Bloomberg, MarketWatch and The Wall Street Journal reported that both Sara Gorman, a spokeswoman for Yahoo, and Yelp spokesman Vince Sollitto declined to comment.

However, Yelp has similar existing content partnerships with Microsoft and Apple.

Yahoo receives its primary search technology through a multi-year pact with Microsoft, under which Microsoft gets 12% of Yahoo's search ad-generated revenue. The Journal cited executives close to Mayer, who have described the deal as a disappointment.

In February 2013, Mayer promoted Yahoo veteran Laurie Mann to run Yahoo Search.

When she led search at Google, Mayer was involved in the company's attempt to acquire Yelp for at least $500 million in 2009.

Saturday, February 8, 2014

Top 10 Industrial Conglomerate Stocks To Buy Right Now

Taking cues from a troubling and unexpected slowdown in China's growth, markets suffered their worst day in months on Monday. Two explosions near the finish line of the Boston Marathon this afternoon drove stocks down further as investors struggled to understand the attacks. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) lost 265 points, or 1.8%, to close at 14,599.

All 30 Dow stocks lost ground today, and Procter & Gamble (NYSE: PG  ) ended as one of just five to lose less than 1%. Losing 0.5% was enough to earn P&G a spot among the day's top performers as the company raised its dividend by 7%, to an annual payout of around 3%.�

Industrials and energy stocks slipped on the Chinese slowdown, as the country saw its industrial production advance 9.5% in the first quarter. While that growth isn't shabby these days from a domestic standpoint, it's a 0.5% slowdown from last year's clip. China's GDP grew at 7.7% after growing by 7.9% in the fourth quarter. General Electric (NYSE: GE  ) ended Monday as one of the worst-performing blue chips in the index, losing 2.8%.

Top 10 Industrial Conglomerate Stocks To Buy Right Now: Zebra Technologies Corporation(ZBRA)

Zebra Technologies Corporation offers products and solutions that assist in identifying, authenticating, and tracking assets, people, and transactions. The company?s products include direct thermal and thermal transfer label and receipt printers, radio frequency identification printer/encoders, dye sublimation card printers, real-time location solutions, and related accessories and support software. It also designs, manufactures, and sells specialty printing devices that print variable information on demand at the point of issuance. The company offers its printers to print bar code labels, receipts, plastic identification cards, wristbands, and tags, as well as to encode passive RFID smart labels and cards. In addition, it provides printer management, label design, and driver solutions under the ZebraNet brand name. The company?s printer supplies consist of stock and customized thermal labels, wristbands, plastic cards, card laminates, and thermal transfer ribbons. Its p roducts have applications in inventory control, small package delivery, baggage handling, automated warehousing, just-in-time manufacturing, employee time and attendance records, file management systems, patient barcode wrist banding, medical specimen labeling, shop floor control, in-store product labeling, employee ID cards, driver?s licenses, and access control systems. The company sells its products worldwide through distributors, value-added resellers, and original equipment manufacturers. Zebra Technologies Corporation was founded in 1969 and is headquartered in Lincolnshire, Illinois.

Advisors' Opinion:
  • [By Andy Obermueller]

    I first told StreetAuthority readers about this game-changing technology in an article about another stock in this sector I like: payment processing firm Zebra (Nasdaq: ZBRA).

Top 10 Industrial Conglomerate Stocks To Buy Right Now: Anacor Pharmaceuticals Inc. (ANAC)

Anacor Pharmaceuticals, Inc., a biopharmaceutical company, focuses on discovering, developing, and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. The company�s lead product candidates include tavaborole, an antifungal product candidate that is in Phase III clinical development for the treatment of onychomycosis; and AN2728, an anti-inflammatory product candidate, which completed Phase II clinical trials for the treatment of atopic dermatitis and psoriasis. It also develops AN5568, a Phase I human clinical trial product targeting human African trypanosomiasis; and other compounds to treat animal health indications. The company�s clinical pipeline also includes AN2718, a topical antifungal product candidate, which is in Phase I clinical trials for the treatment of onychomycosis and fungal infections of the skin; AN2898, a topical anti-inflammatory product candidate that completed the Phase IIa clinical trials for the treatment of atopic dermatitis and psoriasis; and AN3365, an antibiotic for the treatment of infections caused by Gram-negative bacteria. It has research, development, and collaboration agreements with GlaxoSmithKline LLC, Eli Lilly and Company, Medicis Pharmaceutical Corporation, and Medicines for Malaria Ventures. The company was formerly known as AnaMax, Inc. and changed its name to Anacor Pharmaceuticals, Inc. in October 2002. Anacor Pharmaceuticals, Inc. was incorporated in 2000 and is headquartered in Palo Alto, California.

Advisors' Opinion:
  • [By Eric Volkman]

    Anacor Pharmaceuticals (NASDAQ: ANAC  ) is tapping the markets for a fresh infusion of capital. The company has put a price tag of $6.39 per share on its current underwritten public stock issue, in which it is aiming to unload nearly 3.13 million common shares. Additionally, the company's underwriters have been granted a 30-day purchase option for up to an additional 15% of the number of issued shares, in order to cover over-allotments.

Top 5 Value Stocks To Buy Right Now: Great Group Holdings Limited (I5H.SI)

Great Group Holdings Limited, an investment holding company, engages in the design, manufacture, distribution, and sale of men�s and women�s undergarments primarily in Europe, Asia, North America, and South America. It also designs, manufactures, and sells children�s and infants� apparel, swimwear, casual home wear, and pyjamas; produces garments, weaving products, ribbon, printing, shoes, hats, and bags; and provides contract manufacturing services. In addition, the company engages in the sale and distribution of garments and apparel; trading of clothes; and wholesale of footwear, headwear, boxes, fabrics, and accessories. It sells garments under its GRAT.UNIC brand in 140 points of sales, such as specialty stores and dedicated shelf-spaces located in shopping malls, department stores, and commercial areas in the People�s Republic of China, as well as in a specialty store in Hong Kong. The company was incorporated in 2008 and is based in Quanzhou City, the People�s Republic of China. Great Group Holdings Limited operates as a subsidiary of G & W Investment Management Co., Ltd.

Top 10 Industrial Conglomerate Stocks To Buy Right Now: Amphenol Corporation(APH)

Amphenol Corporation engages in the design, manufacture, and marketing of electrical, electronic, and fiber optic connectors; interconnect systems; and coaxial and specialty cables worldwide. Its Interconnect Products and Assemblies segment produces connectors and connector assemblies primarily for the communications, aerospace, industrial, and automotive markets. This segment provides connector and cable assembly products used in communication applications; smart card acceptor and other interconnect devices used in mobile telephones; set top boxes to facilitate reading data from smart cards; fiber optic connectors used in fiber optic signal transmission; backplane and input/output connectors and assemblies used for servers and data storage devices and linking personal computers and peripheral equipment; sculptured flexible circuits used for integrating printed circuit boards; and hinge products used in mobile phone and other mobile communication devices. It also designs a nd produces radio frequency connector products and antennas used in telecommunications, computer and office equipment, instrumentation equipment, local area networks, and automotive electronics. The company?s Cable Products segment produces coaxial cable and connector products used in cable television systems, including full service cable television/telecommunication systems; radio frequency and fiber optic interconnect components for full service cable television/ telecommunication networks; and data cables and specialty cables used to connect internal components in systems with space and component configuration limitations. Amphenol Corporation markets its products directly, as well as through manufacturers? representatives and distributors to original equipment manufacturers, contract manufacturers, cable system operators, and telecommunication companies. The company was founded in 1932 and is headquartered in Wallingford, Connecticut.

Advisors' Opinion:
  • [By Sally Jones] % over 12 months, Amphenol Corporation has a market cap of $12.88 billion and is traded at a P/E of 21.70. The dividend yield is 0.60%.

    The current share price is around $80.94.

    Incorporated in 1987, Amphenol Corporation designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems and coaxial and specialty cable. The markets for the global company's products are communication systems for the converging technologies of voice, video and data communications and a wide range of industrial applications including factory automation and motion control systems, medical and industrial instrumentation, and commercial aerospace and military applications, and many more.

    Guru Action: As of June 30, 2013, Columbia Wanger reduced its position by 0.69%, selling 29,000 shares at an average price of $76.60, gaining 7.5%.

    Columbia Wanger is the top guru stakeholder with 4,184,650 shares or 2.63% of shares outstanding.

    Over a phenomenal five-year trading history, the firm averaged a gain of 215% on 828,250 shares bought at an average price of $25.71 per share. Columbia Wanger also gained 56% selling 1,608,300 shares at an average price of $51.91 per share.

    Check out the very active insider selling and seven gurus holding APH.

    Track share pricing, revenue and net income:

    [ Enlarge Image ]

  • [By Ben Levisohn]

    Competitor AVX Corp. (AVX) has gained 1.1% to $12.96, while Molex (MOLX) has dropped 0.2% to $29.28 and Amphenol (APH) has ticked up 0.3% to $76.32.

Top 10 Industrial Conglomerate Stocks To Buy Right Now: American Axle & Manufacturing Holdings Inc. (AXL)

American Axle & Manufacturing Holdings, Inc., together with its subsidiaries, engages in the manufacture, engineering, design, and validation of driveline and drivetrain systems, and related components and chassis modules for automotive industry in the United States. The company?s driveline and drivetrain systems comprise components that transfer power from the transmission and deliver it to the drive wheels. These products include axles, chassis modules, driveshafts, power transfer units, transfer cases, chassis and steering components, driving heads, crankshafts, transmission parts, and metal-formed products. It offers products for light trucks, sport utility vehicles, passenger cars, crossover vehicles, and commercial vehicles. The company was founded in 1994 and is headquartered in Detroit, Michigan.

Advisors' Opinion:
  • [By Seth Jayson]

    American Axle & Manufacturing Holdings (NYSE: AXL  ) is expected to report Q1 earnings on May 3. Here's what Wall Street wants to see:

  • [By Sue Chang]

    American Axle & Manufacturing Holdings Inc. (AXL) �is projected to report earnings of 56 cents a share in the third quarter.

  • [By Ben Levisohn]

    Cooper Tire & Rubber (CTB) has gained 1% to $24.86 today, but its trading more on whether investors expect its acquisition by Apollo Tyres to be completed. Car-part companies, however, are also exhibiting weakness today. TRW Automotive (TRW) has fallen 0.8% to $77.91, Lear (LEA) has dipped 0.4% to $74.78 and American Axel and Manufacturing (AXL) is off 0.5% to $18.99.

  • [By Travis Hoium]

    What: Shares of American Axle & Manufacturing (NYSE: AXL  ) jumped as much as 13% after the company reported earnings.

    So what: First quarter revenue rose slightly, to $755.6 million, and net income was $7.3 million, or $0.23 per share after adjusting for debt refinancing costs. Consensus estimate was for $750 million in revenue, and earnings of $0.16 per share.�

Top 10 Industrial Conglomerate Stocks To Buy Right Now: Dreyfus Strategic Municipals Inc. (LEO)

Dreyfus Strategic Municipals, Inc. operates as a diversified, closed-end management investment company. The fund invests primarily in municipal obligations of various states of the United States. The Dreyfus Corporation serves as the investment adviser of the fund. Dreyfus Strategic Municipals was founded in 1987 and is based in New York City.

Top 10 Industrial Conglomerate Stocks To Buy Right Now: Fjordland Exploration Inc (FEX.V)

Fjordland Exploration Inc., an exploration stage company, engages in the acquisition and exploration of mineral properties in Canada. It focuses on the discovery of gold, copper, and molybdenum deposits in British Columbia. It has interests in 25 properties. The company has a 100% interest in Tak project comprising 5 properties covering an area of 43,486 hectares in the Cariboo region of central British Columbia; and a 100% interest in the St. Mary�s property covering 13,600 hectares in the Iron Range in southeastern British Columbia. The company also has options to acquire a 100% interest in the adjoining Dillard and Dill copper and gold properties located north of Princeton. In addition, Fjordland Exploration Inc., in partnership with Serengeti Resources Inc., has interests in the Milligan West property covering an area of 15,736 hectares adjoining Thompson Creek�s Mt. Milligan copper-gold deposits; and engages in exploring 10 precious and base metals properties coveri ng an area of 49,753 hectares in the Quesnel Terrane between Imperial Metals� Mount Polley mine and Thompson Creek Metals� Mt. Milligan deposit. The company was incorporated in 1996 and is headquartered in Vancouver, Canada.

Top 10 Industrial Conglomerate Stocks To Buy Right Now: Petrotech Oil & Gas Inc (PTOG)

PetroTech Oil and Gas, Inc., formerly Unity Management Group, Inc., incorporated on April 10, 1998, operates and develops Enhanced Oil Recovery (EOR) opportunities within qualifying oil reservoirs in the United States using its Enhanced Oil Recovery method and technique. The company is also a construction and heavy equipment company. The Company is focussing on developing and acquisitions of technology in secondary oil recovery, oil and gas reporting software, trading software and Nitrogen and CO2 injection equipment. Enhanced oil recovery is also called improved oil recovery or tertiary recovery. The Company�� services include Work over and Installation Services, Heavy Equipment Services, Nitrogen, CO2 and Gas Mixture Treatments, Exhaust Gas Unit, Gas Assisted Gravity Drainage and Reservoir Development. During the year ended December 31, 2012, the Company acquired On Track Technology, Inc. On June 30, 2012, the Company acquired Metropolitan Computing Corp.

Work over and Installation Services

Drilling Vertical or Horizontal Well Supervision, Traditional Work over, Oilfield Work Over Rigs and Roustabout Services to be on location while recompletion, plugging or equipping of wells for in house leases and third party jobs as well. Where applicable Petrotech will utilize flexible Poly Urethane tubing for testing of wells and permanent installs for some shallow depths. The flexible tubing has a Paraffin�� and Asphalt Ines don�� stick to flexible tubing (as it does to steel tubing); and flexible tubing has an estimated 10 times longer life dependent upon the corrosiveness of production and by products, such as the water produced with hydrocarbons.

Heavy Equipment Services

Heavy Equipment Services includes heavy equipment, oilfield roustabout, crane work, water hauling, setting pumping units, separators, tanks, digging pitts and locations roads and heavy equipment services also includes highways for in house leases, third party oil companies and loca! l and government agencies.

Nitrogen, CO2 and Gas Mixture Treatments

The Company focuses in treating with Nitrogen, CO2 or a combination of the two; through two applications where applicable-Huff and Puff and Steady flooding. In cases, HoCyclic gas injection processes has been primarily restricted to the use of pure CO2 or CO2 that has been slightly contaminated.

Exhaust Gas Unit

The CO2/N2 gas mixture focuses to generated from a patented one-of-a-kind portable exhaust unit capable of producing 2.5 millions of cubic feet equivalent at 2000 psi. The exhaust unit manufacturing facility is capable of building over 100 million of daily of deliverability or 180,000 horse power of equipment per year.

Gas Assisted Gravity Drainage

Natural segregation of its gas mixture at miscibility pressure is a component in recreating a gas cap. Doubling of the primary oil recovery from a reservoir is expected with this EOR method and gas mixture. SPE paper #89357 documents GAGD recoveries averaging 63% of the OOIP.

Reservoir Development

Petrotech Oil and Gas Inc. focuses to use the technology in third dimension geophysics available, drilling and compositional reservoir modeling to devise the reservoir�� development plan. In some reservoirs has two horizontal wellbores; one each for the injection of gas and production of oil.

Top 10 Industrial Conglomerate Stocks To Buy Right Now: Juhl Wind Inc(JUHL.OB)

Juhl Wind, Inc. engages in the development, construction, and management of community wind power projects primarily in the United States and Canada. The company focuses on building 5 megawatts (MW) to 80 MW wind farms that are jointly owned by local communities, farm owners, environmentally concerned investors, and the company. It services various aspects of wind farm development, including the development and ownership of wind farms; general consultation on wind projects; construction management of wind farm projects; and system operations and management for completed wind farms. The company also sells renewable energy products, such as remanufactured small wind turbines and solar systems to consumers directly and through a dealer network. As of December 31, 2011, it developed 21 community wind farms totaling approximately 195 megawatts of installed power located primarily in the Buffalo Ridge area of southwestern Minnesota, as well as engaged in various phases of develop ment of 25 community wind projects totaling approximately 405 megawatts of wind power primarily in the states of Minnesota and Nebraska. Juhl Wind, Inc. is based in Pipestone, Minnesota.

Top 10 Industrial Conglomerate Stocks To Buy Right Now: Dundee Mines Ltd (DUN.V)

Duncastle Gold Corp., engages in the acquisition, exploration, and development of natural resource properties in British Columbia, Canada. It primarily explores for gold, copper, molybdenum, tungsten, silver, lead, zinc, and base metals deposits. The company holds an option to acquire a 100% interest in the Porphyry Creek property consisting of 42 mineral claims located in the Omineca Mining District, British Columbia, Canada; and a 100% interest in the Yankee Dundee property consisting of 26 crown-granted mineral claims located in the Nelson Mining District, British Columbia, Canada. It also holds a 100% interest in the Drayton property consisting of 7 mining claims located in the Drayton Township in Ontario, Canada. The company was incorporated in 2006 and is headquartered in Vancouver, Canada.

Top 10 Industrial Conglomerate Stocks To Buy Right Now: Jnr Resources Inc.(JNN.V)

JNR Resources Inc., a junior resource company, engages in the exploration and development of mineral properties in the provinces of Saskatchewan and Newfoundland, Canada. It primarily holds interest in various uranium properties in the Athabasca Basin of northern Saskatchewan. The company?s property portfolio comprises 17 mineral projects, including 14 in the Athabasca Basin, 1 in southwestern Saskatchewan, and 2 on the island of Newfoundland. JNR Resources Inc. was founded in 1979 and is headquartered in Saskatoon, Canada.

Top 10 Industrial Conglomerate Stocks To Buy Right Now: Enerplus Corporation (ERF)

Enerplus Corporation, together with subsidiaries, engages in the exploration and development of crude oil and natural gas in United States and Canada. As of December 31, 2011, it had 322 MMBOE of proved plus probable reserves. The company also held a portfolio of approximately 380,000 net acres of land comprised of 75,000 net acres at Fort Berthold targeting the Bakken and Three Forks; 65,000 net acres in the Duvernay; 33,000 net acres in the Montney; 67,000 net acres in the Stacked Mannville; 30,000 net acres in the Cardium and other emerging oil plays in Canada; and 110,000 net acres in the Marcellus. In addition, it had 120 gross producing wells. The company was founded in 1986 and is headquartered in Calgary, Canada.

Advisors' Opinion:
  • [By WWW.GURUFOCUS.COM]

    Canadian Trusts- Baytex Energy Trust (BTE) | Yield: 6.1%
    - Enerplus Resources Fund (ERF) | Yield: 5.6%
    - Pengrowth Energy Trust (PGH) | Yield: 7.1%

Top 10 Industrial Conglomerate Stocks To Buy Right Now: Cantronic Systems Inc. (CTS.V)

Cantronic Systems Inc. designs, manufactures, and distributes video surveillance equipment and systems in China. The company offers IP-based digital network cameras, security domes, CCTV systems, video management software and video analytics, high definition video surveillance cameras, and night vision surveillance systems for security and surveillance applications, as well as provides related training services. It primarily serves government and corporate customers. The company was formerly known as CSI Photonics Inc. and changed its name to Cantronic Systems Inc. in June 1998. Cantronic Systems Inc. was incorporated in 1997 and is headquartered in Coquitlam, Canada.

Top 10 Industrial Conglomerate Stocks To Buy Right Now: Sun Entertainment Holding Corpo (SED.V)

Sun Entertainment Holding Corporation engages in merchandising records and tapes in North America. It has license rights for the reproduction and resale of certain master sound recordings of Shelby Singleton Enterprises Inc. The company controls the rights to approximately 6,000 classic Rock & Roll, Rockabilly, Country, Rhythm & Blues, Gospel, and Bluegrass titles. Its master recordings are used by record companies and digital companies; and as source music in motion pictures, television shows, and radio and television commercials. The company was founded in 1952 and is based in Vancouver, Canada.

Top 10 Industrial Conglomerate Stocks To Buy Right Now: Yandex N.V.(YNDX)

Yandex N.V., an Internet and technology company, operates an Internet search engine in Russia and internationally. It offers access to a range of information available online; localized homepages for specific geographic markets; and personalized and email services. The company also provides specialized search services comprising news aggregation and information services; and price comparison services, such as product information, price comparisons, and consumer-generated reviews of products and online retailers, as well as other specialized search services, including search services for images, videos, music, theatres, televisions, weather, jobs, transportation, cars, and real estate. In addition, it offers desktop applications consisting of specialized toolbar for Web browsers, Russian-to-English and English-to-Russian keyboard layout switcher, and customized browser versions; and server applications for indexing and searching files in various formats. Further, the compan y provides text-based advertising and display advertising services for advertisers on its Websites and Yandex ad network member Websites; and Yandex.Market, a price comparison service, which offers a platform for retailers to reach consumers in a targeted manner. Additionally, it provides services and tools for businesses comprising Yandex.Webmaster that allows Webmasters to control how their Website is seen by its search engine; Yandex.Metrica, a Web statistics analysis tool; Yandex Site Search, a search tool for Webmasters and Website owners; Yandex.Mail for Domain Owners that allows users to create email accounts with their own domain names; Yandex APIs and Widgets that enable developers to use its technologies in their own businesses; and Yandex.Money, an online payment system. Yandex N.V. was incorporated in 2004 and is based in The Hague, the Netherlands.

Advisors' Opinion:
  • [By Selena Maranjian]

    The biggest new holdings are Valeant Pharmaceuticals International�and Virgin Media. Other new holdings of interest include Yandex (NASDAQ: YNDX  ) , the Russian search-engine company that has seen its stock spike more than 40% over the past year. The stock surged on a strong first-quarter earnings report that featured revenue up 36% and earnings up 79%. Despite many bullish signs, there has been significant insider selling, and management is planning to buy back many shares. With Internet usage growing briskly in Russia, some see the stock as a good buy.

  • [By Jeff Reeves]

    But if you want to roll the dice on a risky but high-reward play, consider telecom giant Yandex (YNDX). This company is actually based in the Netherlands, but operates the leading Russian web portal, with search and email services. It�� essentially the Google (GOOG) of Russia.

  • [By Mark Hulbert]

    Also receiving at least two buy recommendations from these market-beating advisers are two non-U.S. companies: Yandex (YNDX) �, the Russian search engine, and Qihoo 360 Technology (QIHU) �, the Chinese Internet company. Both also sport P/Es that are well above the market: Yandex�� is 28 and Qihoo�� is 51. Yet their PSRs are also lower than Twitter��, at 12 and 15.9, respectively.

  • [By Rick Munarriz]

    There are a lot of factors that investors will need to keep in mind as they dig into the numbers, and you can be sure that investors in Yandex (NASDAQ: YNDX  ) and Baidu (NASDAQ: BIDU  ) will also be tuning in. Both companies report just two trading days after Google steps up with its financials, and it wouldn't be a surprise to see those region-specific search engines that dominate their home markets move on positive or negative developments.

Top 10 Industrial Conglomerate Stocks To Buy Right Now: Excellence Investments Ltd (EXCE.TA)

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

Friday, February 7, 2014

Investing in the Next Generation of Video Game Consoles

The launches of Microsoft's Xbox One and Sony's PlayStation 4 have started another generation of the battle for sales of video game consoles and, by extension, the battle for your living room. It's a big industry, but it's impossible to predict from a console's launch how successful it will be. That uncertainty can scare off investors, but there are ways to invest in the latest console boom without trying to pick a winner.

Making the systems
To sell millions upon millions of consoles, a lot of things need to happen. First, they need to be made and two companies are heavily involved.

The first, Advanced Micro Devices (NYSE: AMD  ) makes the processors for both Sony and Microsoft's offerings, so whether it's a PlayStation or an Xbox under the Christmas tree, there is an AMD processor at its core. Whether both consoles continue to compete for market share with relative parity or one dominates the other, AMD wins.

AMD's primary business is in making processors for computers and between that and their sudden domination of the console market, they are extremely well positioned for a turnaround. Analysts are predicting a return to profitability, and a big gain from the console ramp-up could easily make this the turnaround story of 2014. Stiff competition from Intel on the PC side of things has given them some lean years, but with over $1 billion in cash on hand, there's every reason to bet on this success.

But all those AMD chips and high-end components don't just put themselves together, and that's where Foxconn comes in. The consumate Chinese manufacturer of other peoples' gadgets is involved in the manufacture of both consoles, and that's a nice position to be in. I'm not a huge fan of Foxconn's incredibly low profit margin business style, but there's no denying they're good at what they do.

Games
Out of the box neither an Xbox One or a PlayStation 4 can do much. These are video game systems, and they need games to be worthwhile. While both Sony and Microsoft do make some of their own games, the lion's share of the game market is third-party developers.

While some of the software companies, like Japan-centric Konami and Square clearly would benefit more from PlayStation 4 becoming the worldwide standard, most of the major software players will take advantage of the internal similarities of the two systems, and release their games for both.

Electronic Arts (NASDAQ: EA  ) and Take-Two Interactive (NASDAQ: TTWO  ) are both going to benefit, as their respective sports and action games get reboots on new systems.

The benefit is not just novelty, it's price. The last couple of years of this generation, and indeed any generation, the "new" games fall out of favor quickly and end up in bargain bins well below launch price just a few months out of the gate. On the new systems, there is no competition from used games yet, and the prices will stay higher for longer, helping margins. Higher production costs will offset this somewhat, however.

While earnings will be improved for both in the near term, that makes me nervous and I'm not sure either is a buy at current levels. By contrast, Activision Blizzard (NASDAQ: ATVI  ) sports much better margins, a much higher current ratio (over 5 versus over 1 for the others), and even a small dividend.

Activision isn't as pure a play on the consoles, with its Blizzard division almost exclusively focused on PC gaming, but Blizzard's knack for long-term successful titles will provide the Activision division with a cash-flow cushion that will allow them to take risks the others may not be able to afford. In the last generation that meant some huge hits, and there's no reason to doubt that again this time.

Buying it all
One last play, lost in all of this, is the retail play. Lots of places sell games, from Wal-Mart to Amazon, but the pure play is what it's been for years, GameStop (NYSE: GME  ) , and its worth considering.

People have been predicting the death of GameStop and the rise of digital distribution for years. Buying games on the console and downloading them is an option for some of us, but while broadband is more and more common nationwide, the high speeds needed to download huge, Blu-Ray-sized games are still comparatively expensive and uncommon. Even where they do exist, download caps at Internet providers mean dedicating tens of gigabytes of bandwidth to downloading a single game is not an option for many.

GameStop still has a valuable niche in gaming retail, and there's a lot to like about the cash-rich, debt-free company, with its consistent earnings and its sub-1 PEG ratio.

With everybody predicting a big win for either Sony or Microsoft, there's a lot of temptation to think you have to gamble on one or the other to play the game market. But whether you're into the hardware side with AMD, the software side with Activision, or the retail aspect with GameStop, some of the most compelling plays in the sector don't depend on either side winning outright.

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Thursday, February 6, 2014

Icahn Eyes eBay

One of our favorite stocks has caught the attention of activist investor Carl Icahn, explains Geoffrey Seiler, editor of BullMarket.com.

eBay (EBAY) disclosed that Carl Icahn had accumulated a 0.82% stake in eBay and proposed a non-binding shareholder proposal to split-off PayPal as a separate unit.

The board rejected the split-off proposal, saying it has examined that idea in detail in the past, and believes keeping PayPal together with eBay's Marketplace unit is in the best interests of shareholders.

It believes PayPal is better able to leverage the company's technology capabilities, commerce platforms, and relationships with retailers, brands, and large merchants worldwide, as part of eBay.

As to its results, the company earned $850 million, or 65 cents per share, up 13% from $751 million, or 57 cents per share, a year earlier. Adjusted earnings rose 15% to $1.07 billion, or 81 cents a share.

The result was in line with the analyst consensus. Revenue jumped 13% to $4.53 billion, just below the $4.54 billion consensus.

eBay generated $1.43 billion in free cash flow during the quarter. It ended the quarter with cash, equivalents, and investments of $12.8 billion, and $4.12 billion in debt. Net cash was approximately $6.62 per share. During the quarter, the company repurchased $254 million of its stock. The company's board also authorized another $5 billion for share repurchases.

Looking first at the operating results, eBay delivered an OK quarter, given challenges, such as the shortened holiday season for the Marketplace unit. PayPal once again delivered solid growth.

In both cases, we think the growth in active users, up 14% year over year at Marketplace and 16% for PayPal, points to continued momentum for the businesses.

Icahn is not the first investor to suggest PayPal should be spun-off. One of the arguments is that PayPal would likely command a higher multiple on its own; it would also open PayPal up to be a takeover target.

Our view of Icahn's investment is that it is, mostly, a positive for shareholders, but a distraction for management. Icahn doesn't always get everything he wants, but he's been pretty successful at bidding up the price of companies he has a stake in.

His investment in eBay, at the least, should help raise the floor price a bit and it certainly will lead to a vigorous debate over the merit of his proposal. Meanwhile, eBay remains one of our favorite stocks for the long-term and we continue to rate it a Buy. Our target is $64.

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Tuesday, February 4, 2014

Ask Matt: Better shop around on retail stock

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.

Q: Why are investors souring on retailers?

A: Investors thought retail stocks were money in the bank. But that changed after the holidays.

Some retail stocks suffered a tough start to 2014 after a number of well-known companies issued warnings about the fourth quarter, or shortfalls. Retailers ranging from Sears and Ross Stores to Lululemon, Amazon.com and Wal-Mart stunned investors, saying the holiday period wasn't that great. These revelations have soured investors not just on retail, but on markets in general.

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Shares of the SPDR S&P Retail exchange-traded fund have fallen nearly 10% so far this year as investors digest the warnings. Earnings warnings from consumer discretionary stocks, which includes retail, hit their highest level since the economy's trouble in 2008, says John Butters of FactSet.

Investors had high hopes for Internet retailers, but after Amazon missed expectations, investors are questioning this area, too. That's not to say all retailers are disappointing. Some other retailers including Macy's and Nike continue to see areas of growth beyond expectations. Retailers are increasingly pulling apart from each other, with the strong ones putting up robust growth as the weaker players fade away.

Follow Matt Krantz on Twitter: @mattkrantz.