Saturday, February 28, 2015

Camtek: Another 3D Printer Maker on the Verge

One of the readily apparent aspects of the 3D printing sector is the nosebleed level of forward earnings levels. Stratasys Ltd. (NASDAQ: SSYS) and 3D Systems Corp. (NYSE: DDD), for example, have forward P/E ratios through the 2014 fiscal year at heady levels of 49.75 and 56.72, respectively — and that's at the low end. The ExOne Co. (NASDAQ: XONE) and Voxeljet AG (NYSE: VJET) have forward multiples of 117.27 and 344.27, respectively.

Then there's Camtek Ltd. (NASDAQ: CAMT) with a far more modest forward multiple of 17.6 as of today. But Camtek doesn’t have a 3D printer for sale yet, it only referred to a 3D printer during its November earnings conference call, saying that it was still too early for the company to estimate the impact of a planned 2014 introduction for its 3D printing device that will produce printed circuit boards (PCBs).

But it's not too early for investors to make a move on the company's stock. Shares closed at $1.89 on November 7th, the day the company announced third-quarter earnings. They closed at $2.65 last Friday and are trading up about 80% on Monday at $4.79.

Even a low (for a 3D printing company) forward multiple of 50, at the consensus estimate for 2014 earnings per share of $0.25 (just one analyst, but still), the stock should be worth about $12.50 a share.

Camtek sees the market for its printers at $600 to $700 million (third-quarter revenues totaled less than $22 million) and the company expects to put the device in a customer's hands in a few weeks for testing. As the CEO noted, "[A]lthough 3D printing is a technology out there already, but 3D printing for our application, which is a functional 3D printing, has not been done yet in the world. So as far as I know we’re the first one." Being first at anything is always a big plus.

Camtek shares are trading at $4.71 in the early afternoon Monday in a 52-week range of $1.31 to $5.28. The high was set earlier today.

Friday, February 27, 2015

Top 5 Mid Cap Stocks To Own For 2015

Top 5 Mid Cap Stocks To Own For 2015: Brooks Macdonald Group PLC (BRK)

Brooks Macdonald Group plc is an integrated wealth management group, consists of three principal companies: Brooks Macdonald Asset Management Limited; Brooks Macdonald Financial Consulting Limited, which provides a bespoke, fee based, investment management service to private high net worth individuals, charities and trusts, and also provides in-house custody, nominee and dealing services; Brooks Macdonald Funds Limited, which provides fee-based, independent advice to high net worth individuals, families and businesses, and Brooks Macdonald Financial Consulting Limited, which acts as fund manager to its regulated open ended investment Companies, under the name Brooks Macdonald Funds, as well as providing specialist funds in the property and structured return sectors. It also manages property assets on behalf of the funds and other clients. Its segments include investment management, financial planning, and fund and property management. On July 1, 2012, it acquired JPAM Limited . Advisors' Opinion:
  • [By Bob Bogda]

    The track record of the annual list is equally as impressive. Since the inaugural edition in 2003, "top stocks" have beaten the market 7 out of 10 years (the jury is still out on the current year). That beats the performance of Warren Buffett's Berkshire Hathaway (NYSE: BRK) by one year during the same span.

  • [By David Sterman]

    Insurance companies are some of the best deals on the market right now, as many of them still trade below tangible book value. And considering that book value will rise more quickly as interest rates (and interest income) move higher in coming years, Buffett's Berkshire Hathaway (NYSE: BRK) could afford to pay up to 1.25 times book value and still garner excellent long-term returns. Here's a quick list of insurers that fit the bill:

  • source from Top Penny Stocks For ! 2015:http://www.seekpennystocks.com/top-5-mid-cap-stocks-to-own-for-2015.html

Thursday, February 26, 2015

Bank of England hints at earlier rate rise

LONDON (AP) — British homeowners and businesses could face a rise in interest rates sooner than expected as the economic recovery is gathering pace, the Bank of England indicated Wednesday.

Governor Mark Carney said there were improvements across the board, with unemployment dropping quicker than anticipated — to 7.6%, according to the latest figures.

"For the first time in a long time, you don't have to be an optimist to see the glass as half full," he said as he presented the central bank's quarterly economic report.

The market took that as an indication that interest rates will rise sooner than expected. Britain's main stock index, the FTSE 100, fell 1.4% to 6,635.44, the worst performer in Europe, after Carney's comments.

Even though the markets moved, investors don't expect a rise in interest rates for months, if not years. That's because the bank has vowed not to consider raising its record-low interest rate until unemployment falls below 7%. The latest forecasts suggest the target may be reached by the third quarter of 2015 rather than the original guess of 2016.

Carney went out of his way to say the central bank would not act prematurely.

"It is welcome that the economy is growing again, but a return to growth is not yet a return to normality," Carney said. "Nearly one million more people are out of work than in the years before the financial crisis."

He also said that hitting the 7% threshold would not necessarily trigger an increase in rates. He chuckled at the notion change would be that sudden, and said the bank would make it clear ahead of time what its intentions were, so as to not catch consumers off guard.

"We like to talk," Carney said with a smile.

Carney noted the recovery still faced headwinds, meaning it could yet slow down. The Bank also revised down its forecasts for inflation, which remains its primary policy concern.

As well as holding its main interest rate at a record low of 0.5% since 2009, the bank has pumped 375! billion pounds into the economy to keep market rates low and encourage banks to lend. Yet the British economy remains about 2.5% smaller than it was at the start of 2008, before it fell into the deepest recession since World War II.

Top 5 Building Product Stocks To Invest In Right Now

Signs of life have emerged of late, notably in the housing sector, which many fear is beginning to overheat, particularly in and around London. Carney tiptoed around questions about whether he feared a housing bubble was developing.

Still, the report comes against the most favorable backdrop for the economy since the onset of the recession — having achieved two successive quarters of growth and inflation only marginally above the 2% target.

"Mark Carney must be thinking that being governor of the Bank of England has been a piece of cake so far!" said Howard Archer Chief UK and European economist for IHS Global Insight.

Top Recreation Stocks For 2015

Top Recreation Stocks For 2015: mCig Inc (MCIG)

MCIG, INC. (mCig), incorporated on December 30, 2010, is a development-stage company. The Company is a technology company. The Company focused on two long-term secular trends sweeping the globe: the decriminalization and legalization of marijuana for medicinal or recreational purposes and the adoption of electronic vaporizing cigarettes (eCigs).

The mCig provides a smoking experience by heating (not burning) plant material, waxes, and oils delivering a smoother inhalation experience. As of October 31, 2013, the Company did not generate any revenues.

Advisors' Opinion:
  • [By John Udovich]

    After marijuana, the electronic cigarette sector and e-Cig stocks or industry players like Reynolds American, Inc (NYSE: RAI), mCig Inc (OTCBB: MCIG), Victory Electronic Cigarettes Corp (OTCMKTS: ECIG) and American Heritage International Inc (OTCBB: AHII) is looking like the next hot niche sector for investors. However, electronic cigarette stock investors should be aware of the following recent good and bad news from the sector that needs to be digested:

  • [By John Udovich]

    Last week, I talked about small cap electronic cigarette stocks Vapor Corp (OTCMKTS: VPCO) and Hop-On Inc (OTCMKTS: HPNN) as being among the last of the e-Cig stocks not controlled by "Big Tobacco," but Victory Electronic Cigarettes Corp (OTCMKTS: ECIG), mCig Inc (OTCBB: MCIG) and American Heritage International (OTCBB: AHII) are also positioning themselves or their technology to exploit opportunities in the e-Cig market or even in marijuana or cannabis. Last year, industry experts were already saying that US retail sales of e-cigarettes could reach $1 billion for the year for roughly 1% of the country's cigarette market. That number might appear small, but its more than double 2012 sales as sales increasingly move off the Internet ! and into more mainstream retailers thanks to their positioning as a "healthier" alternative to smoking.

  • [By Joel Elconin]

    One such example is mCig (OTC: MCIG).

    "MCIG started off with a $10 vape pen," he said. "They almost envision themselves as being the Apple of the industry. CEO and founder Paul Rosenberg [is] strictly a businessman, he owns about half the stock. He then brought on some talent and gave them his stock to help the company. Why? Because he knows the stock is overvalued, but if you can [evolve a company] without diluting your shareholders, that's what I mean by doing the right thing."

  • source from Top Stocks For 2015:http://www.topstocksblog.com/top-recreation-stocks-for-2015-2.html

Tuesday, February 24, 2015

5 Best Oil Stocks To Own Right Now

5 Best Oil Stocks To Own Right Now: Lightstream Resources Ltd (LSTMF.PK)

Lightstream Resources Ltd, formerly PetroBakken Energy Ltd., is a Canada-based oil and gas exploration and production company. The Companys principal operating areas include southeastern Saskatchewan where it targets the Bakken formation and conventional Mississippian reservoirs, central Alberta, where it is focused on the Cardium formation, and north-central Alberta, where it is engaged in exploring for light oil resource plays. In addition, the Company also has land holdings in the Horn River and Montney plays in northeast British Columbia. On December 31, 2012, Petrobank Energy and Resources Ltd. and PetroBakken Energy Ltd. announced the completion of the reorganization. The Reorganization resulted in a newly incorporated company PetroBakken Energy Ltd. (New PetroBakken). Advisors' Opinion:
  • [By MLP Trader]

    Here are the current top five companies in the list:

    CompanySymbolEV/BOEPD/NetbackPrice/NAVEV/DACFPinecrest(PNCGF.PK)53564%4.0XLightstream(LSTMF.PK)131753%4.5XNovus(NOVUF.PK)133290%4.1XZargon(ZARFF.PK)138664%5.6XTwin Butte(TBTEF.PK)155885%5.5X

    Of the larger companies, one that remains obstinately near the top of the list is Lightstream . Lightstream trades at 40% of its book value and a whopping 13.4% yield.

  • source from Top Stocks To Buy For 2015:http://www.topstocksforum.com/5-best-oil-stocks-to-own-right-now-2.html

Thursday, February 19, 2015

Hot Industrial Conglomerate Companies To Invest In Right Now

Hot Industrial Conglomerate Companies To Invest In Right Now: Siemens AG (SIEGY)

Siemens AG (Siemens), incorporated on August 28, 1996, is a globally operating technology company with core activities in the fields of energy, healthcare, industry and infrastructure. Siemens business activities focus on four sectors, Energy, Healthcare, Industry and Infrastructure & Cities. These sectors form four of Siemens reportable segments. In addition to the four sectors, Siemens has two additional reportable segments: Equity Investments and Siemens Financial Services (SFS). The Energy sector comprises four divisions: Power Generation, Wind Power, Power Transmission and Energy Service. The Healthcare Sector includes four divisions: Imaging & Therapy Systems, Clinical Products, Diagnostics and Customer Solutions; and one sector-led Business Unit, Audiology Solutions. The Industry sector consists of three divisions: Industry Automation, Drive Technologies and Customer Services; and one sector-led Business Unit, Metals Technologies. The Infrastructure & Cities sector consists of five divisions: Rail Systems, Mobility and Logistics, Low and Medium Voltage, Smart Grid, and Building Technologies. In July 2013 Siemens sold its stake in the Nokia Siemens Networks (NSN) joint venture to Nokia and OSRAM Licht AG was spun off from Siemens.

Industry

The Industry Sector offers a broad spectrum of products, solutions and services that help customers use resources and energy. The Sector's integrated technologies and holistic solutions primarily address industrial customers, particularly those in the process and manufacturing industries. The portfolio spans industry automation, industrial software, drive products and services, system integration, and solutions for industrial plant businesses. The Industry Sector consists of three Divisions: Industry Automation, Drive Technologies and! Customer Services. The Sector also includes a sector-led Business Unit, Metals Technologies. In addition to its Sector-level financial result s, Industry also breaks out financial results for the Indust! ry Automation Division and the Drive Technologies Division. The Industry Automation Division offers a range of standard products and system solutions for automation technologies used in the manufacturing and process industries. The Division's offerings include automation systems and software, motor controls, machine-to- machine communication products, sensors, product and production lifecycle management products, and software for simulating and testing mechatronic systems. The Drive Technologies Division offers products and comprehensive systems across the entire drive train. These offerings are customized to the respective application and include numerical control systems, inverters, converters, motors (geared and gearless), drives and couplings. In addition, Drive Technologies supplies integrated automation systems for machine tools and production machines. The Division also offers integrated lifecycle solutions and services for industries such as shipbuilding, cement, m ining, and pulp and paper. The Customer Services Division offers a comprehensive portfolio of services and supports industrial customers.

Energy

The Energy Sector offers a spectrum of products, solutions and services for generating and transmitting power, and for extracting, converting and transporting oil and gas. The Fossil Power Generation Division offers products and solutions for fossil-based power generation. The Division concentrates on products and solutions for gas and steam turbines, turbo generators, heat recovery steam generators including control systems, with an emphasis on combined-cycle power plants. It also develops solutions for instrumentation and control systems for all types of power plants and for use in power generation. The Wind Power Division manufactures wind turbines for onsho! re and of! fshore applications, including both geared turbines and direct drive machines. The product portfolio is based on four product platforms, two for each of the onshore and offshore applications. The Oil ! & Gas Div! ision has a comprehensive portfolio of rotating machinery (gas turbines, steam turbines, compressors with associated equipment) and electrical, instrumentation and telecommunication (EIT) solutions. The Power Transmission Division provides customers with turnkey power transmission solutions as well as discrete products, systems and related engineering and services. It covers high-voltage transmission solutions, power and distribution transformers, high-voltage switching and non-switching products and systems, and alternating and direct current transmission systems. The Energy Service Division offers comprehensive services for products, solutions and technologies, covering performance enhancements, maintenance services, customer trainings and consulting services for the Divisions Fossil Power Generation, Wind Power and Oil & Gas. The Wind Power Division is active in both the onshore and the offshore market segments globally. Power Transmission Division is expanding infrastruc ture in emerging countries, equipment replacement and modernization in mature economies, and integration of renewable energies.

Healthcare

The Healthcare Sector offers customers a comprehensive portfolio of medical solutions across the treatment chain-ranging from medical imaging to in-vitro diagnostics to interventional systems and clinical information technology systems-all from a single source. In addition, the Sector provides technical maintenance, professional and consulting services, and, together with Financial Services (SFS), financing to assist customers in purchasing the Sector's products. The Healthcare Sector includes four Divisions: Imaging & Therapy Systems, Clinical Products, Diagnostics and Customer Solutions. The Sector also includes one sector-led Business Unit, Audiology S! olutions.! In addition to its Sector-level financial results, Healthcare also separately breaks out financial results for the Diagnostics Division.

The Imaging & Therapy Systems Division provides large-scale! medical ! devices for diagnostic imaging and for image-guided therapies. Imaging equipment includes computed tomographs, magnetic resonance imaging equipment, angiography systems for diagnostics, and positron emission tomography. The Clinical Products Division mainly comprises the business with ultrasound and X-ray equipment including mammography. The Diagnostics Division offers products and services in the area of in-vitro diagnostics. The Division's product portfolio represents a comprehensive range of diagnostic testing systems and consumables, including offerings for clinical chemistry and immunodiagnostics, molecular diagnostics, hematology, hemostasis, microbiology, point-of-care testing and clinical laboratory automation solutions. The Customer Solutions Division provides healthcare information technology (HIT) systems. It is responsible for the Sector's service business and customer relationship management on a global level.

Equity Investments

The Equity Investments comprises equity stakes held by Siemens that are accounted for by the equity method, at cost or as current available-for-sale financial assets and for strategic reasons are not allocated to a Sector, SFS, Centrally managed portfolio activities, Siemens Real Estate (SRE), Corporate items or Corporate Treasury. Its main investments within Equity Investments are its stake of 50% in BSH Bosch and Siemens Hausgerate GmbH (BSH), its stake of 17% in OSRAM Licht AG (OSRAM) as well as its 49% stake in Enterprise Networks Holdings B.V. (EN).

Financial Services

Financial Services provides a variety of financial services and products to other Siemens units and their customers and to third parties. SFS has three strategic pillars: supporting Siemens units with finance solution! s for the! ir customers, managing financial risks of Siemens and offering third-party finance services and products. SFS' business can be divided into capital business a nd fee business. The Commercial Finance Business Unit offers! a compre! hensive range of solutions for equipment financing, leasing, rental and related financing for equipment supplied by Siemens or third-party providers. The Venture Capital Business Segment's main task, together with Siemens' Sectors, is to identify and finance young companies worldwide. The Treasury Business Unit operates the global Corporate Treasury of the Siemens Group, with SFS employee's thereby managing liquidity, cash and financial risks (interest, foreign exchange, commodities) on behalf of Corporate Treasury. The Financing & Investment Management Business Unit manages fee-based receivables and offers investment management services. The Insurance Business Unit acts primarily as an insurance broker for Siemens and external customers.

Infrastructure & Cities

The Infrastructure & Cities Sector offers a range of technologies for the sustainability of metropolitan centers and urban infrastructures worldwide, such as integrated mobility soluti ons, building and security systems, power distribution equipment, smart grid applications and low and medium-voltage products. The Sector consists of five Divisions: Rail Systems; Mobility and Logistics; Low and Medium Voltage; Smart Grid; and Building Technologies. The Rail Systems Division comprises Siemens' rail vehicle business, encompassing the entire spectrum of rolling stock-including high-speed trains, commuter trains, passenger coaches, metros, people movers, light rail vehicles, locomotives, bogies, traction systems and rail-related services. The Mobility and Logistics Division primarily provides products, solutions (including IT solutions) and services for rail transportation operating systems, such as central control systems, interlockings and automated controls. The Division also prov! ides offe! rings for road traffic, including traffic detection, information and guidance systems.

Advisors' Opinion:
  • [By John Udovich]

    With that in mind, here is what you need to know about all three stocks:

    Dresser-Rand Group Inc. One of the largest global suppliers of custom-engineered rotating equipment solutions, mid cap Dresser-Rand Group's solutions are intended for long-life, critical applications in the oil, gas, chemical, petrochemical, process, power, military and other industries worldwide - including the environmental market space within energy infrastructure. More specifically, Dresser-Rand Group's centrifugal and reciprocating gas compressors, gas and steam turbines, gas expanders, gas and diesel engines, and associated control panels are used in oil and gas production, high-pressure field injection and oil recovery, gas liquefaction, gas transmission, refinery processes, natural gas processing, petrochemical production, general industry (including paper, steel, sugar, and distributed power) and US Navy applications. The company operates manufacturing facilities in the United States, France, United Kingdom, Spain, Germany, Norway, and India plus maintains a network of 49 service and support centers (including six engineering and R&D centers) covering more than 150 countries. On September 21st, it was announced that Siemens AG (OTCMKTS: SIEGY) would acquire the Dresser-Rand Group for $83.00 per share in cash in a transaction valued at approximately $7.6 billion in order to get more exposure to the North American hydraulic fracturing market and capitalize on the growing interest in fracking in Europe, Asia, Africa and Latin America. In early December, Reuters quoted Siemens' CEO as saying they are not going to pull out from the deal despite the big oil price decline:

    "If we walked away from that deal we would see a lot of happy competitors. That is why we do not even think about walking away. We are in this for the long haul."

  • ! [By Luke ! Jacobi]

    Dresser-Rand Group (NYSE: DRC) shares were also up, gaining 2.6 percent to $81.97 after Siemens AG (OTC: SIEGY) announced its plans to acquire Dresser-Rand for $7.6 billion.

  • [By Garrett Cook]

    Dresser-Rand Group (NYSE: DRC) shares were also up, gaining 2.60 percent to $81.99 after Siemens AG (OTC: SIEGY) announced its plans to acquire Dresser-Rand for $7.6 billion.

  • [By Luke Jacobi]

    Shares of Dresser-Rand Group (NYSE: DRC) got a boost, shooting up 9.4 percent to $79.91 on report of a $85 per share bid from Siemens (OTC: SIEGY).

  • source from Top Stocks For 2015:http://www.topstocksblog.com/hot-industrial-conglomerate-companies-to-invest-in-right-now-2.html

Wednesday, February 18, 2015

Best Gold Companies To Own For 2015

Best Gold Companies To Own For 2015: Renaissance Oil Corp (ROE)

Renaissance Oil Corp, formerly San Antonio Ventures Inc., is developing a diversified shale and mature fields portfolio for development in Mexico and Spain. The Company is partnered with Grupo SAMCA, a diverse industrial with operations in energy, mining, industrial minerals, agriculture, environmental and various other business lines in Spain. Advisors' Opinion:
  • [By Nelson Nguyen]

    Lessons Learned from "The Little Book that Builds Wealth" by Pat Dorsey

    Economic moats can protect companies from competition, helping them earn more money for a long time, and therefore making them more valuable to an investor. Return on capital (ROC) is the best way to judge a companys profitability. Mistaken Moats: 1) Great products (i.e. Krispy Kreme, Netscape), 2) strong market share (i.e. Chryslers minivan, IBMs PCs, General Motors), 3) great execution (i.e. Kodak), and 4) great management (i.e. JetBlue). They do not create long-term competitive advantages. They are nice to have, but theyre not enough. The four sources of structural competitive advantage are 1) intangible assets (brands, patents, licenses, etc.), 2) customer switching costs (products or services that are hard to give up, like banks), 3) network economics (i.e. credit cards, Microsoft Windows and Office), and 4) cost advantages (stems from process, location, scale or access to a unique asset). If you found a company with one of these characteristics with solid ROC, youve probably found a company with an economic moat. Its easier to create a competitive advantage in some industries than it is in others. See page 118 for Moats by Sector. Measuring Return on Capital: Return on Assets (ROA) measures how much income a company generates per dollar of assets. Return on Equity (ROE) measures the efficiency with which a company uses shareholders equity and is a great overall measure on returns on capital. (Note: A flaw in using ROE is a company can take on a lo! t of debt and boost ROE without becoming more profitable.) Return on Invested Capital (ROIC) combines the best in both worlds by measuring the return on all capital invested in the firm (both debt and equity). Bet on the horse, not the jockey. Management matters, but far less than moats. The Moat Process on page 145:

    Has the firm historically generated solid ROC?

  • [By Fast Weekly]

    One of my favorite metrics is return on equity (ROE). I want to be sure that the companies I own generate a high rate of return on my equity ownership in the company. You can see the past 10 years of ROE for Unilever Plc.

  • [By Michael Robinson]

    Separate the signal from the noise: To create real wealth, you have to ignore Wall Street's hype machine and focus on firms with excellent fundamentals. And Jazz certainly has a great foundation. The company has operating margins of 41% and a return on stockholders' equity (ROE) of 31%.

  • [By nnnguyen1221]

    Return on Equity (ROE):

    If you had to teach a child about investment Returns, one of the first investing songs they may learn perhaps may be entitled, ROE-ROE-ROE your Float. All kidding aside, ROE is one of Warren Buffett (Trades, Portfolio)s measures of a healthy company.

  • source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/best-gold-companies-to-own-for-2015-2.html

Monday, February 16, 2015

Consumer Reports lists most unreliable auto brands

A day after Consumer Reports magazine listed the best car brands for reliability, the obvious question emerges: Which is the worst?

The answer can be summed up in four little letters: Mini. BMW's fun, youthful bargain brand fell six places from last year when it comes to reliability to end up in the basement.

But the next two worst brands for reliability are ones that have showcased America's manufacturing comeback: Lincoln and Ford. They were bad last year and they are bad again this year. Three other Detroit brands -- Cadillac, Dodge and Jeep -- make up the next worst brands. But the next ones are decidedly foreign -- Nissan, Hyundai and Volkswagen. Then Chrysler's Ram, in 10th place.

How to explain it all? Consumer Reports' testing engineer Jake Fisher wonders if European makers are getting chintzy with their less expensive brands. He says Mini's placement at the bottom of the list is interesting considering that BMW is squarely in the middle when it comes to reliability. Volkswagen fared far worse than also middle-of-the-pack Porsche.

"Less-expensive European brands are having more problems," he says. It raises the possibility "They are trying to save money in these vehicles" by scrimping in ways that hurt reliability.

Reached for comment, Mini offered a statement: "When our owners speak we listen and act accordingly. We are currently taking a close look at the recent Consumer Reports findings so that we can better understand what our customers reported, and learn from this information in order to improve the reliability of all Mini vehicles."

When it comes to Ford and its luxury brand, Lincoln, Fisher says the brand appears to have tried to have made too many changes at once. The magazine says of the 31 Ford models in its survey, only one was above average, the F-150 pickup with a 3.7-liter engine. Ford vehicles took a hit for confusing infotainment systems, its MyFord Touch with Sync, which the company acknowledges. But Ford may have gotten into trouble with a fr! eshened product line with changes like new turbocharged engines that took on a lot at once, he says.

Ford says in response: "We listen to all customer input and remain absolutely committed to delivering the best quality with every new vehicle. We have improved the quality of our advanced connectivity technologies by 50% since launch. Customers want advanced infotainment technologies in their vehicles. MyFord Touch and Sync are sold on 93% of our vehicles and more than 70% of customers would recommend the technologies to others."

The list of the worst brands for reliability:

1. Mini

2. Lincoln

3. Ford

4. Cadillac

5. Dodge

6. Jeep

7. Nissan

8. Hyundai

9. Volkswagen

10.Ram

Top 5 Wireless Telecom Companies To Invest In Right Now

Top 5 Wireless Telecom Companies To Invest In Right Now: TechnoConcepts Inc (TCPS)

TechnoConcepts, Inc. (TCI), incorporated in May 2003, is in the business of designing, developing, manufacturing and marketing wireless communications semiconductors. The Company has begun manufacturing wireless transmitter and receiver microchips, based on its technology, and produced its engineering run in August 2006. The technology, which TCI calls True Software Radio, is designed to improve the way that wireless signals are received and transmitted, by making possible device-to-device communication across otherwise incompatible networks and wireless standards. On October 17, 2005, the Company, through its wholly owned subsidiary, Asante Acquisition Corp. completed reorganization with RegalTech Inc. RegalTech's name was changed to Asante Networks Inc. (Asante).

In December 2005, the Company formed Jinshilin Techno Ltd. (Jinshilin Techno) as its wholly owned subsidiary based in Shanghai, China. The Company organized Jinshilin Techno to provide marketing, sa les and technical support for True Software Radio technology in China. On April 21, 2006, Jinshilin Techno acquired Internet television (IPTV) set-top box (STB) technology through license agreements with Jinshilin Technologies Development Company Ltd. (Jinshilin). Jinshilin Techno offers an IPTV set-top box that features voice over Internet protocol (VOIP), capability and can receive Internet protocol (IP) data transmissions through the household electrical power grid.

Asante Networks Inc. provides Ethernet networking solutions for Apple Computer and the small-to-medium business retail markets, offering the IntraCore and FriendlyNET product families, integrating voice, data, and video over wireless and wired networks with unified management and authentication. In April 2006, Asante announced the release of 2-chip switch solution, the IntraCore 38480. The IntraCore 38480 provides no frame loss and full-wire speed with minimized ! latency. With 96-gigabit switching fabric, the IntraCore 38480 supports full-wire speed on all ! ports. It has advanced traffic control based on L2-L7 data of incoming frames.

The Company's True Software Radio technology makes possible for wireless transmitters and receivers, as well as the radio signal processing, to be fully controlled and reconfigured by software commands across a range of frequencies and frequency bands. Its True Software Radio technology is a delta-sigma microchip architecture that converts radio frequency signals directly into digital data for the wireless receiver and directly from digital data into radio signals for the wireless transmitter. True Software Radio microchips replace the analog front end, intermediate frequency (I/F) processing, analog-to-digital conversion (ADC), and digital filtering sections of conventional wireless transmitters and receivers.

Advisors' Opinion:
  • [By Peter Graham]

    Small cap tech stocks TechnoConcepts, Inc (OTCMKTS: TCPS), Unisource Corporation (OTCMKTS: USRC) and Strategic Global Investments, Inc (OTCMKTS: STBV) have been getting some attention lately in various investment newsletters thanks to promotions. Of course, there is nothing wrong with properly disclosed promotions, but they can backfire on the unwary as its really up to investors or traders alike to do their own due diligence before investing or trading. With that in mind, here is a quick reality check about three small cap tech stocks getting a bit of attention lately:

    TechnoConcepts, Inc (OTCMKTS: TCPS) Has the Yield Sign Replaced on Its OTC Page

    Small cap TechnoConcepts is a wireless technology company currently holding patents and other intellectual property. On Friday, TechnoConcepts fell 0.45% to $15.58 for a market cap of $415.28 million plus TCPC is up 1.1% over the past year and up 6% since April 2012 according to Google Finance.

  • source from Top Stocks ! To Buy Fo! r 2015:http://www.topstocksforum.com/top-5-wireless-telecom-companies-to-invest-in-right-now-2.html

Sunday, February 15, 2015

Why Forward Contracts Are The Foundation Of All Derivatives

Tweet 0 Disqus Email Print Feedback Share Tweet 0 Disqus Email Print Feedback 0 Disqus Why Forward Contracts Are The Foundation Of All Derivatives October 23 2013| Filed Under » Arbitrage, Currency Derivatives, Forwards The most complex type of investment products fall under the broad category of derivative securities. For most investors, the derivative instrument concept is hard to understand. However, since derivatives are typically used by governmental agencies, banking institutions, asset management firms and other types of corporations to manage their investment risks, it is important for investors to have a general knowledge of what these products represent and how they are used by investment professionals.

Forward Derivative Contract Overview

As one type of derivative product, forward contracts can be used as an example to provide a general understanding of more complex derivative instruments such as futures contracts, options contracts and swaps contracts. Forward contracts are very popular because they are unregulated by the government, they provide privacy to both the buyer and seller, and they can be customized to meet both the buyer's and seller's specific needs. Unfortunately, due to the opaque features of forward contracts, the size of the forward market is basically unknown. This, in turn, makes forward markets the least understood of the various types of derivative markets.

Many potential issues may arise. For example, parties that utilize forward contracts are subject to default risk, their trade completion may be problematic due to the lack of a formalized clearinghouse, and they are exposed to potentially large losses if the derivatives contract is structured improperly. As a result, there is the potential for severe financial problems in the forward markets to overflow from the parties that engage in these types of transactions to society as a whole. To date, severe problems such as systemic default among the parties that engage in forward contracts have not come to fruition. Nevertheless, the economic concept of "too big to fail" will always be a concern, so long as forward contracts are allowed to be undertaken by large organizations. This problem becomes an even ! greater concern when both the options and swaps markets are taken into account.

Trading and Settlement Procedures for a Forward Derivative Contract

Forward contracts trade in the over-the-counter market. They do not trade on an exchange such as the NYSE, NYMEX, CME or CBOE. When a forward contract expires, the transaction is settled in one of two ways. The first way is through a process known as "delivery." Under this type of settlement, the party that is long the forward contract position will pay the party that is short the position when the asset is delivered and the transaction is finalized. While the transactional concept of "delivery" is simple to understand, the implementation of delivering the underlying asset may be very difficult for the party holding the short position. As a result, a forward contract can also be completed through a process known as "cash settlement."

A cash settlement is more complex than a delivery settlement, but it is still relatively straightforward to understand. For example, suppose that at the beginning of the year a cereal company agrees through a forward contract to buy 1 million bushels of corn at $5 per bushel from a farmer on Nov. 30 of the same year. At the end of November, suppose that corn is selling for $4 per bushel on the open market. In this example, the cereal company, which is long the forward contract position, is due to receive from the farmer an asset that is now worth $4 per bushel. However, since it was agreed at the beginning of the year that the cereal company would pay $5 per bushel, the cereal company could simply request that the farmer sell the corn in the open market at $4 per bushel, and the cereal company would make a cash payment of $1 per bushel to the farmer. Under this proposal, the farmer would still receive $5 per bushel of corn. In terms of the other side of the transaction, the cereal company would then simply purchase the necessary bushels of corn in the open market at $4 per bushel. The net effect ! of this p! rocess would be a $1 payment per bushel of corn from the cereal company to the farmer. In this case, a cash settlement was used for the sole purpose of simplifying the delivery process.

Currency Forward Derivative Contract Overview

Derivative contracts can be tailored in a manner that makes them complex financial instruments. A currency forward contract can be used to help illustrate this point. Before a currency forward contract transaction can be explained, it is first important to understand how currencies are quoted to the public, versus how they are used by institutional investors to conduct financial analysis.

If a tourist visits Times Square in New York City, he will likely find a currency exchange that posts exchange rates of foreign currency per U.S. dollar. This type of convention is used frequently. It is known as an indirect quote and is probably the manner in which most retail investors think in terms of exchanging money. However, when conducting financial analysis, institutional investors use the direct quotation method, which specifies the number of units of domestic currency per unit of foreign currency. This process was established by analysts in the securities industry, because institutional investors tend to think in terms of the amount of domestic currency required to buy one unit of a given stock, rather than how many shares of stock can be bought with one unit of the domestic currency. Given this convention standard, the direct quote will be utilized to explain how a forward contract can be used to implement a covered interest arbitrage strategy.

Assume that a U.S. currency trader works for a company that routinely sells products in Europe for euros, and that those euros ultimately need to be converted back to U.S. dollars. A trader in this type of position would likely know the spot rate and forward rate between the U.S. dollar and the euro in the open market, as well as the risk-free rate of return for both the U.S. dollar and the euro. For example, th! e currenc! y trader knows that the U.S. dollar spot rate per euro in the open market is $1.35 U.S. dollars per euro, the annualized U.S. risk-free rate is 1% and the European annual risk-free rate is 4%. The one-year currency forward contract in the open market is quoted at a rate of $1.50 U.S. dollars per euro. With this information, it is possible for the currency trader to determine if a covered interest arbitrage opportunity is available, and how to establish a position that will earn a risk-free profit for the company by using a forward contract transaction.

Example of a Covered Interest Arbitrage Strategy

To initiate a covered interest arbitrage strategy, the currency trader would first need to determine what the forward contract between the U.S. dollar and euro should be in an efficient interest rate environment. To make this determination, the trader would divide the U.S. dollar spot rate per euro by one plus the European annual risk-free rate, and then multiply that result by one plus the annual U.S. risk-free rate.

[1.35 / (1 + 0.04)] x (1 + 0.01) = 1.311

In this case, the one-year forward contract between the U.S. dollar and the euro should be selling for $1.311 U.S. dollars per euro. Since the one-year forward contract in the open market is selling at $1.50 U.S. dollars per euro, the currency trader would know that the forward contract in the open market is overpriced. Accordingly, an astute currency trader would know that anything that is overpriced should be sold to make a profit, and therefore the currency trader would sell the forward contract and buy the euro currency in the spot market to earn a risk-free rate of return on the investment.

The covered interest arbitrage strategy can be achieved in four simple steps:

Step 1: The currency trader would need to take $1.298 dollars and use it to buy €0.962 euros.

To determine the amount of U.S. dollars and euros needed to implement the covered interest arbitrage strategy, the currency trader would divide the spot contract price of $1.35 U.S. dollars per euro by one plus the European annual risk-free rate of 4%.

1.35 / (1 + 0.04) = 1.298

In this case, $1.298 U.S. dollars would be needed to facilitate the transaction. Next, the currency trader would determine how many euros are needed to facilitate this transaction, which is simply determined by dividing one by one plus the European annual risk-free rate of 4%.

1 / (1 + 0.04) = 0.962

The amount that is needed is €0.962 euros.

Step 2: The trader would need to sell a forward contract to deliver €1.0 euro at the end of the year for a price of $1.50 U.S. dollars.

Step 3: The trader would need to hold the euro position for the year, earning interest at the European risk-free rate of 4%. This euro position would increase in value from €0.962 euro to €1.00 euro.

0.962 x (1 + 0.04) = 1.000

Step 4: Finally, on the forward contract expiration date, the trader would deliver the €1.00 euro and receive $1.50 U.S. dollars. This transaction would equate to a risk-free rate of return of 15.6%, which can be determined by dividing $1.50 U.S. dollars by $1.298 U.S. dollars and then subtracting one from the answer to determine the rate of return in the proper units.

(1.50 / 1.298) – 1 = 0.156

The mechanics of this covered interest arbitrage strategy are very important for investors to understand, because they illustrate why interest rate parity must hold true at all times to keep investors from making unlimited risk-free profits.

The Link Between Forward Contracts and Other Derivatives

As this article illustrates, forward contracts can be tailored as very complex financial instruments. The breadth and depth of these types of contracts exp! ands exponentially when one takes into account the different types of underlying financial instruments that can be used to implement a forward contract strategy. Examples include the use of equity forward contracts on individual stock securities or index portfolios, fixed income forward contracts on securities such as treasury bills, and interest rate forward contracts on rates such as LIBOR, which are more commonly known in the industry as forward-rate agreements.

Finally, investors should understand that forward contract derivatives are typically considered the foundation of futures contracts, options contracts and swap contracts. This is because futures contracts are basically standardized forward contracts that have a formalized exchange and clearinghouse. Options contracts are basically forward contracts that provide an investor an option, but not an obligation, to complete a transaction at some point in time. Swaps contracts are basically a linked-chain agreement of forward contracts that require action to be taken by investors periodically over time.

The Bottom Line

Once the link between forward contracts and other derivatives is understood, investors can quickly start to realize the financial tools that are at their disposal, the implications that derivatives have for risk management, and how potentially large and important the derivatives market is to a host of governmental agencies, banking institutions and corporations throughout the world.

Friday, February 13, 2015

Where's The Groundswell To Keep Bernanke?

If anybody credible would have told me at 2013's start the market had a shot at posting up to a 25% gain, I would have scoffed there wasn't sufficient data to make that call. But, even in a churning market, I didn't find a more enticing venue than the Big Board, calling for 1,700 on the S&P 500 Index months ago.

The Fed is our best friend so why no groundswell to keep Bernanke working in place? I'll miss Ben Bernanke who was my Santa. Why President Obama rushed to show him the door is a puzzle. Not only has our maximum FRB leader done the right thing (since 2008) but Ben still forces all our many-handed economists to forecast furiously and retract their freshest faux pas.

The only variance in the Street's foolish guessing game was whether FRB tightening would embrace either a $5 billion or $10 billion monthly retreat from its $85 billion largesse. As if such a gesture carried deep meaning for interest rates.

Read the Federal Reserve's press release dated September 18, a masterpiece of straight talk. It tells you what the Fed thinks it knows about the economy's course, and then, lists imponderables. The imponderables outweigh what everyone knows, which is the latest month's stats on the consumer, manufacturing activity and the country's jobless rate.

The Fed's biggest worry is that the past 3 months' snapback in interest rates slows recovery and stalls-out any gains in the rolls of employment. Additionally, the wise men fuss over inflation's low level, near 1%. For them, this is an insidious element with negative connotations for GDP momentum. Considering our financial history is so marred with long cycles of inflation, I'd brush away low inflation as a serious blight.

Who's going to defer big-ticket commitments like new cars and home purchases because inflation is too skimpy? Already, interest rates on prime 30-year mortgages have bulged by half, from 3% six months ago to 4.75% last week. Low cost credit on new car purchases remains a stimulant to Detroit's monthly selling rate.

Gimme a break guys. Do I defer my purchase of a new sports jacket because inflation is too low? Will my little lady put off purchasing her winter wardrobe? Tell it to the Marines! I'd like to see lower prices and some flattening on luxury items like theater tickets, deluxe hotel suites, not to mention contemporary art canvases, women's jewelry and a glass of plunk at my neighborhood hole in the wall, now pushing beyond $12 the half-filled glass.

The Fed rightly fears fiscal retrenchment sparked by a platoon of know-nothing, shortsighted Republican Congressman determined to shut down the government no later than next month. What I like about the Fed's actions on non-implementation is they're totally pragmatic, needing to see a quickening of the pace of business before any tightening gestures, albeit minimal at first.

Reiteration on keeping the rate on Fed Funds between zero and 25 basis points for longer, not shorter, is an enormous fillip for financial markets, including anyone whose loans are tied to LIBOR. Personally, I arbitrage money, carrying a portfolio of BB corporates and preferred stocks yielding approximately 7%. So far this paper outperforms Treasuries, big time.

The Fed links Fed Funds largesse to the threshold unemployment rate of 6.5%. Liberal economists (me, too) believe the more appropriate level is 5.5%. When you factor in millions of job seekers who have given up looking, you are talking easily double digits, some say 14%. What can a laid off second mortgage salesman do but cut grass?

I expect two more glorious years for Fed Funds near zero. After the initial bump up, maybe mid-2016, I'll bang out my ragamuffin fixed income portfolio. Gone, but not forgotten. I'm not a big player in municipals, but the word is, at least for New York State and The Big Apple Apple, tax receipts have recovered to 2007 pre-recession levels.

If the Fed looks 2 years ahead on the inflation issue and tolerates a 2.5% rate before tightening, what more can anyone ask for? It's as if Bernanke has issued all operators a free hunting license for elephants. There goes Boeing Boeing! Grab it! My mortgage insurance operators, Radian Group and MGIC experience blue skies ahead.

With the Fed on hold, the price-earnings ratio for the S&P 500 Index easily holds above 15 times earnings. Maybe, the market blows off and reaches 18 times earnings. This happens if operating profit margins for major corporations inch up from their current fully recovered level. I rate this a 50 / 50 probability but no more. If GDP accelerates to over 3% next year my odds go to 75 / 25.

Economic projections by FRB members and regional bank presidents are even more restrained than their preceding verbiage. GDP projections for 2014 come in a touch. Nobody expects more than 3% growth or unemployment dipping below 6.4% to 6.8%. For 2015, numbers turn stronger, but predictive power lessens over time.

Thursday, February 12, 2015

Hot Small Cap Stocks To Invest In Right Now

With nothing more than a passing glance at Royale Energy, Inc. (NASDAQ:ROYL), it would be easy to dismiss it as just another volatile small caps... one of many small cap stocks that gets a little squirrelly every now and then. The longer you study the chart of ROYL, however, the clearer it becomes... this chart looks like it's coming out of a slightly bearish lull and working its way into an uptrends.

As the name basically suggests, ROYL is an oil and gas explorer. Specifically, Royale Energy, Inc. is developing gas-producing properties near Sacramento, and a crude property in Alaska. Unlike most of its small cap peers in the energy space though - the "juniors" - this particular small cap oil and gas play is already in production, and bearing revenue for its effort.

That's not to say Royale Energy is the picture of consistency, or of profits. While 2010 and 2011 were good years, with a top line of between $11 million and $12 million in each of those years, 2012 was a bit of a letdown, with revenue of only $4.4 million and a big loss of $12 million. 2013 got off to a slow start too.

10 Best Japanese Stocks To Watch For 2015: Hot Topic Inc.(HOTT)

Hot Topic, Inc., together with its subsidiaries, operates as a mall- and Web-based specialty retailer in the United States. The company operates Hot Topic and Torrid store concepts, as well as an e-space music discovery concept, ShockHound. Its Hot Topic stores sell music/pop culture-licensed merchandise, including tee shirts, hats, posters, stickers, patches, postcards, books, novelty accessories, CDs, and DVDs; and music/pop culture-influenced merchandise comprising women?s and men?s apparel and accessories, such as woven and knit tops, skirts, pants, shorts, jackets, shoes, costume jewelry, body jewelry, sunglasses, cosmetics, leather accessories, and gift items for young men and women primarily between the ages of 12 and 22. The company?s Torrid stores sells casual and dressy jeans and pants, fashion and novelty tops, sweaters, skirts, jackets, dresses, hosiery, shoes, intimate apparel, and fashion accessories for various lifestyles for plus-size females primarily betw een the ages of 15 and 29. As of July 30, 2011, it operated 636 Hot Topic stores in 50 states, Puerto Rico, and Canada; 145 Torrid stores; and Internet stores, hottopic.com and torrid.com. The company was founded in 1988 and is headquartered in City of Industry, California.

Advisors' Opinion:
  • [By Marshall Hargrave]

    In May True Religion (TRGL) announced a buyout offer from TowerBrook Capital for $826 million. Also in May, Rue21 decided to sell itself to Apax Partners for $2.2 billion. Before that, in March, Hot Topic (HOTT) announced that Sycamore Partners was buying out it out for $600 million.

Hot Small Cap Stocks To Invest In Right Now: FuelCell Energy Inc.(FCEL)

FuelCell Energy, Inc., together with its subsidiaries, engages in the development, manufacturing, and sale of high temperature fuel cells for clean electric power generation primarily in South Korea, the United States, Germany, Canada, and Japan. The company offers proprietary carbonate Direct FuelCell Power Plants that electrochemically produce electricity from hydrocarbon fuels, such as natural gas and biogas. Its fuel cells operate on a range of hydrocarbon fuels, including natural gas, renewable biogas, propane, methanol, coal gas, and coal mine methane. The company also develops carbonate fuel cells, planar solid oxide fuel cell technology, and other fuel cell technologies. It provides its products to universities; manufacturers; mission critical institutions, such as correction facilities and government installations; hotels; and natural gas letdown stations, as well as to customers who use renewable biogas for fuel, including municipal water treatment facilities, br eweries, and food processors. The company was founded in 1969 and is headquartered in Danbury, Connecticut.

Advisors' Opinion:
  • [By James E. Brumley]

    Back on March 11th, yours truly opined that the wild bullishness that had carried names like ZBB Energy Corporation (NYSEMKT:ZBB), Plug Power Inc. (NASDAQ:PLUG), FuelCell Energy Inc. (NASDAQ:FCEL), and Ballard Power Systems Inc. (NASDAQ:BLDP) to triple digit gains (in just a few days) was coming to a close, and taking profits on any and all of these stocks would be a good idea. It was an idea that went over like a lead balloon, judging from the responses I got. How ridiculous of me to turn bearish on those names! FCEL, PLUG, ZBB, and BLDP were all flying high, and obviously since they soared over the course of the two weeks leading up to that date, they could only keep going higher forever.

  • [By Dan Caplinger]

    FuelCell Energy (NASDAQ: FCEL  ) will release its quarterly report on Monday, and bullish investors have sent shares of this fuel-cell power-plant developer soaring in recent days as the space has drawn a lot of attention lately. With industry peer Plug Power (NASDAQ: PLUG  ) having made a deal with Wal-Mart to supply the retailer with fuel-cell power, Plug, Ballard Power Systems (NASDAQ: BLDP  ) , and FuelCell have all inspired dreams of huge growth in the near future.

Hot Small Cap Stocks To Invest In Right Now: Sky-mobi Limited(MOBI)

Sky-mobi Limited engages in the operation of a mobile application store in the People?s Republic of China. It works with handset companies to pre-install its Maopao mobile application store on handsets and with content developers to provide users with applications and content titles. The users of its Maopao store could browse, download, and purchase a range of applications and content, such as single-player games, mobile music, and books. The company?s Maopao store enables mobile applications and content to be downloaded and run on various mobile handsets with hardware and operating system configurations. It also operates a mobile social network community, the Maopao Community, where it offers localized mobile social games, as well as applications and content with social network functions to its registered members. The company owns proprietary mobile application technology in the cloud computing, the MRP format, and SDK development environment. As of March 31, 2011, it had entered into cooperation agreements with approximately 523 handset companies to pre-install Maopao. The company was formerly known as Profit Star Limited and changed its name to Sky-Mobi Limited in October 2010. Sky-mobi Limited was incorporated in 2007 and is headquartered in Hangzhou, China.

Advisors' Opinion:
  • [By Monica Gerson]

    Sky-mobi (NASDAQ: MOBI) is projected to report its Q2 results.

    Perfect World Co (NASDAQ: PWRD) is estimated to post its Q2 earnings at $0.41 per share on revenue of $150.56 million.

Hot Small Cap Stocks To Invest In Right Now: bebe stores inc.(BEBE)

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

Advisors' Opinion:
  • [By Eric Volkman]

    bebe stores (NASDAQ: BEBE  ) continues to outfit its shareholders in cash by maintaining its dividend policy. The company has declared a fresh quarterly distribution of $0.025 per share of its stock, payable on June 20 to shareholders of record as of June 6.��That amount matches the company's preceding disbursement, which was handed out in mid-March.

  • [By Monica Gerson]

    Bebe Stores (NASDAQ: BEBE) is estimated to post a Q4 loss at $0.17 per share on revenue of $104.79 million.

    UTi Worldwide (NASDAQ: UTIW) is expected to report its Q2 earnings at $0.01 per share on revenue of $1.14 billion.

  • [By Jeremy Bowman]

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

Hot Small Cap Stocks To Invest In Right Now: EZchip Semiconductor Limited(EZCH)

EZchip, a fabless semiconductor company, engages in the development and marketing of Ethernet network processors for networking equipment. Its products include network processor chips, evaluation boards and network-processor based systems, and development software toolkits. The company offers network processors for use in forming the silicon core of networking equipment, such as switches and routers; and for voice, video and data integration in various applications. Its network processors are single-chip solutions, which enable its customers to design multi-port line cards, such as processing and classification engines, traffic managers, media access controllers, as well as a range of specialized hardware blocks that accelerate various functions. The company offers Evaluation systems which enable customers to test NPU-based systems; and toolkits that assist customers in creating, verifying, and implementing solutions based on its network processors. It provides a library f eaturing data plane code for a range of applications, which include Metro Ethernet protocols, Multi-Protocol Label Switching, IPv4 and IPv6 routing, Access Control Lists, GPON/EPON OLT functionality, Network Address Translation, and Server Load Balancing. The company sells its products directly, and through contract manufacturers and distributors to network equipment vendors. It markets its products in Israel, China, Hong Kong, the Far East, Canada, the United States, and Europe. The company was formerly known as LanOptics Ltd. and changed its name to EZchip Semiconductor Ltd. in July 2008. EZchip Semiconductor Ltd. was founded in 1989 and is based in Yokneam, Israel.

Advisors' Opinion:
  • [By Lisa Levin]

    EZchip Semiconductor (NASDAQ: EZCH) surged 9.38% to $26.13. The volume of EZchip Semiconductor shares traded 407% higher than normal. EZchip Semiconductor reported better-than-expected Q1 results.

  • [By Jake L'Ecuyer]

    EZchip Semiconductor (NASDAQ: EZCH) was also up, gaining 7.16 percent to $24.11 after a Cisco (NASDAQ: CSCO) announced a new product that would not threaten the company as previously thought. Equities Trading DOWN
    Shares of Cypress Semiconductor (NASDAQ: CY) were down 16.05 percent to $9.91 after the company lowered its Q3 forecast.

Hot Small Cap Stocks To Invest In Right Now: OCZ Technology Group Inc(OCZ)

OCZ Technology Group, Inc. designs, develops, manufactures, and distributes computer components for computing devices and systems worldwide. It primarily offers solid state drives, flash memory storage, memory modules, thermal management solutions, AC/DC switching power supply units, and computer gaming solutions. The company?s products are used in industrial equipment and computer systems; computer and computer gaming solutions; mission critical servers and high end workstations; personal computer (PC) upgrades to extend the useable life of existing PCs; high performance computing and scientific computing; video and music editing; home theatre PCs and digital home convergence products; and digital photography and digital image manipulation computers. OCZ Technology Group, Inc. offers its products to retailers, on-line retailers, original equipment manufacturers, systems integrators, and distributors. The company was founded in 2002 and is headquartered in San Jose, Califo rnia.

Advisors' Opinion:
  • [By Rich Duprey]

    The not-so-great and wonderful OCZ
    There was no company-specific news that caused solid-state-drive maker OCZ Technology (NASDAQ: OCZ  ) to fall almost 8% Wednesday. But an article that appeared on Seeking Alpha �questioning whether the company had six months or less to live before it filed for bankruptcy seemed to coincide with its fall.

Wednesday, February 11, 2015

Best Medical Stocks To Own Right Now

NEW YORK (MarketWatch) ��Shares of DaVita HealthCare Partners Inc. and Fresenius Medical Care AG & Co. rose Monday, as the providers of kidney dialysis got a boost from a decision by the Centers for Medicare and Medicaid Services to cut government payments by less than expected.

DaVita (DVA) �gained 8.9% and Fresenius (FMS) �rose 7.2%.

Peabody Energy Enlarge Image Energy stocks took a hit Monday.

Medicare, which covers most payments for kidney disease, will transition to a new payment mechanism that effectively preserves the payments to the providers over the next two years. The total cuts amount to less than 1% in 2014 and 2015, in contrast to proposed cuts of as much as 12%, according to The Wall Street Journal.

Best Internet Stocks To Watch Right Now: Galena Biopharma Inc (GALE)

Galena Biopharma, Inc. (Galena), formerly RXi Pharmaceuticals Corporation, incorporated on April 3, 2006, is a biotechnology company focused on discovering, developing and commercializing therapies addressing unmet medical needs using targeted biotherapeutics. The Company is pursuing the development of cancer therapeutics using peptide-based immunotherapy products, including its main product candidate, NeuVaxTM (E75), for the treatment of breast cancer and other tumors. NeuVax is a peptide-based immunotherapy intended to reduce the recurrence of breast cancer in low-to-intermediate HER2-positive breast cancer patients not eligible for trastuzumab (Herceptin; Genentech/Roche). On January 19, 2012, the Company initiated enrollment in its Phase 3 PRESENT clinical trial for NeuVax (E75 peptide plus GM-CSF) vaccine in low-to-intermediate HER2 1+ and 2+ breast cancer patients in the adjuvant setting to prevent recurrence (Clinicaltrials.gov identifier NCT01479244). The Prevention of Recurrence in Early-Stage, Node-Positive Breast Cancer with Low to Intermediate HER2 Expression with NeuVax Treatment study is a randomized, multicenter, multinational clinical trial that will enroll approximately 700 breast cancer patients. The Company�� Phase 2 trial of NeuVax achieved its primary endpoint of disease-free survival (DFS). On April 13, 2011, the Company completed its acquisition of Apthera, Inc.,(Apthera).

The Company focuses to start a Phase 2 trial comparing NeuVax in combination with trastuzumab (Herceptin) versus trastuzumab, alone, in a 300-patient, randomized study in the adjuvant breast cancer setting. The Company's second product candidate, Folate Binding Protein-E39 (FBP), is a vaccine, consisting of the peptides E39 and J65, aimed at preventing the recurrence of ovarian, endometrial, and breast cancers. On February 14, 2012, the Company announced the initiation of a Phase 1/2 clinical trial in two gynecological cancers: ovarian and endometrial adenocarcinomas. Folate binding protein has ! very limited tissue distribution and expression in non-malignant tissue and is over-expressed in more than 90% of ovarian and endometrial cancers, as well as in 20% to 50% of breast, lung, colorectal and renal cell carcinomas.

In April 2011, the Company acquired Apthera Inc and its NeuVax product candidate. The Company focuses on developing a pipeline of immunotherapy product candidates for the treatment of various cancers based on the E75 peptide, the advanced of which is NeuVax, which is targeted at preventing the recurrence of breast cancer. NeuVax has had positive Phase 1/2 clinical trial results for the prevention of breast cancer recurrence in patients who have had breast cancer and received the standard of care treatment (surgery, chemotherapy, radiotherapy and hormonal therapy as indicated). The Company had also initiated its Phase 3 PRESENT clinical trial of NeuVax for the prevention of breast cancer recurrence in early-stage low-to-intermediate HER2 breast cancer patients. NeuVax directs killer T-cells to target and destroy cancer cells that express HER2/neu, a protein associated with epithelial tumors in breast, ovarian, pancreatic, colon, bladder and prostate cancers. NeuVax is comprised of a HER2/neu-derived peptide called E75. E75 is a nine-amino acid sequence that is immunogenic (produces an immune response) and GM-CSF is a commercially available protein that acts to stimulate and activate components of the immune system such as macrophages and dendritic cells.

The Company also develops novel applications for NeuVax based on preclinical studies and phases 2 clinical trials which suggest that combining NeuVax and trastuzumab (Herceptin; Genentech/Roche) can increase antigen presentation by tumor cells by promoting receptor internalization and subsequent proteosomal degradation of the HER2 protein. The Company also is pursuing additional therapeutic indications for NeuVax that are in Phase 1/2 clinical trials. RXI-109, is a dermal anti-scarring therapy that targets! connecti! ve tissue growth factor (CTGF) and that may inhibit connective tissue formation in human fibrotic disease.

The Company competes with Roche Laboratories, Inc., Pfizer Inc., Bayer HealthCare AG, Sanofi-Aventis, US, LLC, Amgen, Inc., GlaxoSmithKline plc, Renovo Group plc, CoDa Therapeutics, Inc., Sirnaomics, Inc., FirstString Research, Inc., Merz Pharmaceuticals, LLC, Capstone Therapeutics, Halscion, Inc., Garnet Bio Therapeutics, Inc., AkPharma Inc., Promedior, Inc., Kissei Pharmaceutical Co., Ltd., Eyegene, Derma Sciences, Inc., Healthpoint Biotherapeutics, Pharmaxon, Excaliard Pharmaceuticals, Inc., Alnylam Pharmaceuticals, Inc., Marina Biotech, Inc., Tacere Therapeutics, Inc., Benitec Limited, OPKO Health, Inc., Silence Therapeutics plc, Quark Pharmaceuticals, Inc., Rosetta Genomics Ltd., Lorus Therapeutics, Inc., Tekmira Pharmaceuticals Corporation, Arrowhead Research Corporation, Regulus Therapeutics Inc. and Santaris.

Advisors' Opinion:
  • [By James E. Brumley]

    The last two weeks have been absolutely fantastic ones for Galena Biopharma Inc. (NASDAQ:GALE). Shares have soared from $2.37 to the current price of $3.32 - a 40% pop - rewarding investors who had been patiently waiting through late October for the runup to take hold. Congratulations if that's you. But, if that was you, then now might be a great time to take the money and run with the trade, as GALE looks poised to make a sizeable pullback. More on that in a moment.

Best Medical Stocks To Own Right Now: Marcolin SpA (MCL)

Marcolin SpA is an Italy-based eyewear manufacturer. It is a manufacturer of glasses and sunglasses for such brands as Tom Ford, Roberto Cavalli and Just Cavalli, Diesel, Montblanc, Tod's and Hogan, Balenciaga, Swarovski, Timberland, DSquared2 and Kenneth Cole. Advisors' Opinion:
  • [By John McCamant]

    Our top stock selection for 2014 has received three Breakthrough Therapy Designations (BTD) by the FDA, and subsequent approval, in November, for Imbruvica, a very safe pill that has shown unprecedented efficacy to treat mantle cell lymphoma (MCL), suggests John McCamant, editor of The Medical Technology Stock Letter.

Best Medical Stocks To Own Right Now: Applied Nanotech Holdings Inc (APNT)

Applied Nanotech Holdings, Inc., incorporated on May 22, 1989, is engaged in nanotechnology research and development business. The Company's nanotechnology research involves performing contract research and development services for others to develop products and materials for new applications, and then leveraging this research by applying it to other similar applications in other industries. The Company also develops intellectual property (IP) around its products and technologies. The Company develops five technology platforms: nanosensor technology; nanocomposites, based on carbon nanotube composites; thermal management materials; nanoelectronics applications, and electron emission activities, primarily in the display area. The Company's electron emission IP is divided into display activities and non-display activities. Applied Nanotech Holdings, Inc. is the parent company. Applied Nanotech, Inc. (ANI) is a subsidiary of ANHI. During the year ended December 31, 2012, the Company formed EZDiagnostix, Inc., (EZDX).

Sensors

The Company develops sensors based on ion mobility sensor technology and differential mobility spectroscopy. The Company is involved in projects to develop Mercaptan and Methane sensors for uses in the natural gas industry. The Company is also applying this technology to other applications, including agricultural pathology, wound care, and breath analysis. The Company develops hydrogen sensor for use in the measurement of hydrogen in power transformer products. The Company develops carbon monoxide sensor that can last for 10,000 hours on a single battery. The Company's carbon nanotube technology is for use in biosensors. Sensors based on carbon nanotubes or other nanomaterials can be used to detect chemical, organic, or biological warfare agents, as well as explosives, hydrogen, ammonia and numerous other chemicals.

Nanocomposites

The Company is in the advanced stages of development of nanomaterials using carbon nanotube (CNT) and! other composites. Epoxies are used in industries with worldwide markets, with applications, including adhesives, paints, coatings, and composites. In addition to epoxy resins, the Company develops other types of resins, including polyesters and vinyl esters. Vinyl esters are used in a variety of industrial applications, including storage tanks, piping, and construction. The Company develops a process for coating nylon pellets with CNTs to improves electrical conductivity. Nylon 6 with improved electrical conductivity can be used for its anti-static qualities, electrostatic discharge, and electromagnetic/RF shielding.

Thermal Management

The Company markets thermal management material called CarbAl. CarbAl provides a passive thermal management solution for temperature control issues that plague electronics manufacturers. CarbAl is a carbon based metal nanocomposite comprised of 80% carbonaceous matrix and a dispersed metal component of 20% aluminum. The Company also develops a simplified version of CarbAl based on graphite.

Conductive Inks

The Company develops aluminum and silver inks and pastes that is ideal for use in the production of solar cells. The Company also develops aluminum paste that can be used in current solar cell production.

The Company competes with Zyvex Performance Materials, GSI Creos, Amroy Europe, Ltd., DuPont and Ferro

Advisors' Opinion:
  • [By Anuchit Nguyen]

    India�� S&P BSE Sensex rose, holding at a three-year high, amid better-than-estimated corporate earnings. Engineering company Larsen & Toubro Ltd. (LT) rallied to a three-month high and Asian Paints Ltd. (APNT) surged about 6 percent after reporting profit that beat forecasts.

Best Medical Stocks To Own Right Now: Tonix Pharmaceuticals Holding Corp (TNXP)

Tonix Pharmaceuticals Holding Corp., incorporated on November 16, 2011, is a specialty pharmaceutical company focused on developing novel pharmaceutical products for disorders of the central nervous system (CNS). The Company develops TNX-102 sublingual tablet, or TNX-102 SL. TNX-102 SL is a novel dose and formulation of cyclobenzaprine (CBP), the active pharmaceutical ingredient of two prescribed muscle relaxant products, Flexeril and Amrix. TNX-102 SL is also intended for chronic use. It develops TNX-102 SL for the treatment of FM under a United States Investigational New Drug application (IND), and under three clinical trial applications (CTAs), filed in Canada. It also develops TNX-102 SL for the treatment of post-traumatic stress disorder (PTSD). As of January 25, 2013, the Company focuses on product development, and had not generated any revenues.

The Company searches for potential therapeutic solutions among known pharmaceutical agents that lack regulatory approval for the indications it seeks, but may be approved for use in other indications. It seeks to create new dose and formulation options that are tailored to the therapeutic uses to which it applies these agents. TNX-102 SL is a small, rapidly disintegrating tablet containing CBP for sublingual administration at bedtime. The Company designed TNX-102 SL for delivery of CBP to the systemic circulation through sublingual transmucosal absorption and to avoid first-pass liver metabolism.

CBP is the active pharmaceutical ingredient in its lead product candidate, TNX-102 SL. In addition to CBP, TNX-102 SL contains inactive ingredients, called excipients, which are approved for pharmaceutical use. In addition to TNX-102 SL, it develops other formulations of CBP, including TNX-102 promicellar gelatin capsule, or TNX-102 gelcap. It developed TNX-102 gelcap under an agreement with Lipocine, Inc. (Lipocine), a contract formulation developer and small-scale manufacturer. In addition it has other pipeline of other product cand! idates, including TNX-201 and TNX-301. TNX-201 is based on isometheptene mucate and is under development as a treatment for certain types of headaches.

Advisors' Opinion:
  • [By John Udovich]

    It�� a new year and the first one and a half trading weeks of 2014 has not disappointed biotech investors as the sector and mid cap or small cap biotech or�pharma stocks like Intercept Pharmaceuticals Inc (NASDAQ: ICPT), Epizyme Inc (NASDAQ: EPZM), Tonix Pharmaceuticals Holding Corp (NASDAQ: TNXP) and TNI BioTech Inc (OTCQB: TNIB) either surging or producing some news plus there have been IPO filings for future listings for�Flexion Therapeutics (NASDAQ: FLXN), Aldexa Therapeutics (NASDAQ: ALDX), Retrophin (NASDAQ:�RTRX) and Dicerna Pharmaceuticals (NASDAQ: DRNA). Consider the following news so far this year:

Best Medical Stocks To Own Right Now: Cellular Dynamics International Inc (ICEL)

Cellular Dynamics International, Inc., incorporated on November 16, 2007, develops and manufactures fully functioning human cells in industrial quantities to precise specifications. The Company�� iCell Operating System (iCell O/S) includes true human cells in multiple cell types (iCell products), human induced pluripotent stem cells (iPSCs) and custom iPSCs and iCell products (MyCell products). Customers use its iCell O/S products, among other purposes, for drug discovery and screening; to test the safety and efficacy of their small molecule and biologic drug candidates; for stem cell banking; and in researching cellular therapeutics. The Company�� iCell product line includes four different cell types: cardiomyocytes, neurons, hepatocytes and endothelial cells. The Company is actively developing an additional seven different cell types. iCell products are a consumable designed to be used once and then reordered.

The Company manufactures its iCell products from its iPSCs. An iPSC is a cell that has the ability both to replicate indefinitely and to be transformed into any cell type in the human body. The Company�� iCell O/S consists of six products, which include iCell Cardiomyocytes, iCell Neurons, iCell Endothelial Cells, iCell Hepatocytes and MyCell.

Advisors' Opinion:
  • [By John Udovich]

    Stem cells may not be in the news much�as the sector has moved beyond the use of embryotic�ones, but small cap stem cell stocks Cellular Dynamics International Inc (NASDAQ: ICEL), International Stem Cell Corp (OTCMKTS: ISCO) and BioRestorative Therapies (OTCBB: BRTX) have been fairly active over the past several trading days as ICEL went public, ISCO raised additional funding and BRTX grabbed more attention:

Best Medical Stocks To Own Right Now: SearchCore Inc (SRER)

SearchCore, Inc., formerly General Cannabis, Inc., incorporated in 2003, is a technology service provider. As of December 31, 2011, the Company was engaged in the medicinal cannabis industry. The Company assists the physicians, dispensaries, and end-users within the medicinal cannabis industry in finding each other and in advertising their businesses. All of its operations are conducted through its wholly owned subsidiaries. On January 5, 2012, WeedMaps, LLC (WeedMaps) acquired substantially all the assets of MMJMenu, LLC. On October 31, 2011, General Merchant Solutions, Inc. discontinued all retail credit card processing operations. On January 11, 2011, the Company acquired all the assets of Revyv, LLC. On December 31, 2012, the Company acquired Sports Asylum, Inc. In February 2013, it acquired ModularHomes.com.

WeedMaps Media, Inc. is its wholly owned subsidiary, and its primary operation is the Internet Website, www.weedmaps.com. WeedMaps.com is an online finder site service that allows patients to find local medical cannabis dispensaries, which are also referred to as collectives. Dispensaries are locations where patients who have received letters of recommendation from a healthcare provider can purchase medicinal cannabis, as well as a variety of other non-cannabis related items including, but not limited to, apparel accessories, posters, bumper stickers, concert tickets, books and musical compact disc�� (CD��).

General Marketing Solutions, Inc. is its wholly owned subsidiary, and its primary operation is the Internet Website, www.cannabiscenters.com. General Management Solutions, Inc. is its wholly owned subsidiary that oversees and provides all of the human resources issues for employees, including hiring, terminating and employee benefits. The Company has two additional wholly owned subsidiaries; General Processing Corporation, CannaCenters Corporation (CannaCenters), and two subsidiaries, namely LV Luxuries Incorporated (which operated as makeup.com) and General ! Health Solutions, Inc. (CannaCenters.com).

Advisors' Opinion:
  • [By Peter Graham]

    Small cap communications or Internet stocks American Community Development Group Inc (OTCMKTS: ACYD), Globalstar, Inc (OTCMKTS: GSAT) and SearchCore Inc (OTCMKTS: SRER) have been rather quiet lately for investors after making some noise back in September. Nevertheless, all three are still getting some mentions in various investment newsletters or alerts and not because they are the subject of paid promotions. So are these small cap stocks about to make some noise? Here is a closer look:

Best Medical Stocks To Own Right Now: Waters Corp (WAT)

Waters Corporation (Waters), incorporated on December 6, 1991, is an analytical instrument manufacturer that primarily designs, manufactures, sells and services, through its Waters Division, high performance liquid chromatography (HPLC), ultra performance liquid chromatography (UPLC and together with HPLC, referred to as LC) and mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products and post-warranty service plans. These systems are complementary products that are frequently employed together (LC-MS) and sold as integrated instrument systems using a common software platform and are used along with other analytical instruments. Through its TA Division (TA), the Company primarily designs, manufactures, sells and services thermal analysis, rheometry and calorimetry instruments. The Company is also a developer and supplier of software-based products that interface with the Company's instruments and are typically purchased by customers as part of the instrument system. The Company's products are used by pharmaceutical, life science, biochemical, industrial, nutritional safety, environmental, academic and governmental customers working in research and development, quality assurance and other laboratory applications. The Company operates in two segments: Waters Division and TA Division.

In January 2012, the Company acquired Baehr Thermoanalyse GmbH. In July 2012, the Company acquired Blue Reference, Inc. During the year ended December 31, 2012, the Company introduced the Xevo G2-S Q-TofTM and Xevo G2-S Tof mass spectrometers, bringing StepWave ion technology to its bench-top time-of-flight mass spectrometers.

Waters Division

HPLC is used to identify and analyze the constituent components of a variety of chemicals and other materials. HPLC is used to identify new drugs, develop manufacturing methods and assure the potency and purity of new pharmaceuticals. HPLC is also used in a variety of other applica! tions, such as analyses of foods and beverages for nutritional labeling and compliance with safety regulations, the testing of water and air purity within the environmental testing industry, as well as applications in other industries, such as chemical and consumer products. HPLC is also used by universities, research institutions and governmental agencies, such as the United States Food and Drug Administration (FDA) and the United States Environmental Protection Agency (EPA). The ACQUITY UPLC I-Class provides a solution to a critical need by successfully analyzing compounds that are limited in amount or availability.

Waters manufactures LC instruments that are offered in configurations that allow for varying degrees of automation, from component configured systems for academic research applications to fully automated systems for regulated testing, and that have a variety of detection technologies, from ultra-violet (UV) absorbance to MS, optimized for certain analyses. The Company also manufactures tailored LC systems for the analysis of biologics, as well as an LC detector utilizing evaporative light scattering technology to expand the usage of LC to compounds.

The primary consumable products for LC are chromatography columns. These columns are packed with separation media used in the LC testing process and are replaced at regular intervals. The Company's chemistry consumable products also include environmental and nutritional safety testing products. Environmental laboratories use these products for quality control and proficiency testing and also purchase product support services required to help with their federal and state mandated accreditation requirements or with control over critical pharmaceutical analysis. In addition, the Company provides tests to identify and quantify mycotoxins in various agricultural commodities. These test kits provide reliable, quantitative detection of particular mycotoxins through the choice of flurometer, LC-MS or HPLC.

The Co! mpany off! ers a range of MS instrument systems utilizing various combinations of quadrupole, Tof, ion mobility and magnetic sector designs. These instrument systems are used in drug discovery and development, as well as for environmental, clinical and nutritional safety testing. The spectrometers sold by the Company are designed to utilize an LC system as the sample introduction device.

The Company�� smaller-sized mass spectrometers, such as the single quadrupole detector (SQD) and the tandem quadrupole detector (TQD), referred to as LC detectors and are sold as part of an LC system or as an LC system upgrade. Quadrupole systems, such as the Xevo TQ and Xevo TQ-S instruments, are used for late-stage drug development, including clinical trial testing. Quadrupole time-of-flight (Q-Tof) instruments, such as the Company�� SYNAPT G2-S, are used to analyze the role of proteins in disease processes, an application referred to as proteomics. Its SYNAPT G2 HDMS and SYNAPT G2 MS systems are exact mass MS/MS platforms. The Company�� Xevo TQ-S instrument system is designed for UPLC/MS/MS applications. Its Xevo G2 Q-Tof is exact mass quantitative and qualitative bench-top MS/MS instrument systems. The Company�� SYNAPT G2-S incorporates Waters StepWave ion transfer optics and Triwave ion mobility technologies along with a range of informatics tools.

TA Division

Thermal analysis measures the physical characteristics of materials as a function of temperature. Rheometry instruments complement thermal analyzers in characterizing materials. Rheometry characterizes the flow properties of materials and measures their viscosity, elasticity and deformation under different types of loading or other conditions.

Thermal analysis measures the physical characteristics of materials as a function of temperature. Rheometry instruments complement thermal analyzers in characterizing materials. Rheometry characterizes the flow properties of materials and measures their viscosity, elast! icity and! deformation under different types of loading or conditions. As with systems offered through the Waters Division, a range of instrumental configurations is available with sample handling and information processing automation. In addition, systems and accompanying software packages can be tailored for specific applications. The Company�� Q-Series family of differential scanning calorimeters includes a range of instruments, from analyzers to systems, which can accommodate robotic sample handlers and a range of sample cells and temperature control features for analyzing a range of materials.

The Company competes with Agilent Technologies, Inc., Shimadzu Corporation, Bruker Corporation, Danaher Corporation, Thermo Fisher Scientific Inc, PerkinElmer, Inc., Mettler-Toledo International Inc., NETZSCH-Geraetebau GmbH, Thermo Fisher Scientific Inc., Malvern Instruments Ltd., Anton-Paar, Phenomenex, Inc., Supelco, Inc., Merck and Co., Inc. and General Electric Company.

Advisors' Opinion:
  • [By Geoff Gannon] strong>Balchem (BCPC)

    路 Idexx (IDXX)

    路 II-VI (IIVI)

    路 Mesa Laboratories (MLAB)

    路 Masimo (MASI)

    I don�� know most of those companies very well. I probably know Waters the best out of that group.

    Obviously, there are companies outside of Phil Fisher�� area of focus ��manufacturing with technical elements ��that fit many of his principles.

    Among really high profile companies, the three that stand out are:

    1. Amazon (AMZN)

    2. Netflix (NFLX)

    3. Wells Fargo (WFC)

    Of those 3, Amazon stands out the most. Jeff Bezos often seems to be channeling Phil Fisher. And I imagine that if Fisher were ever interested in a retailer it would be a retailer with Amazon�� attitude about technology, customers, growth, and the long-term. More than anything though it�� Amazon�� constant internal push to develop new sales and especially new ways to serve existing customers without being prompted by outside forces that makes me think it�� a company Phil Fisher would be very interested in.

    Fisher liked companies that had a philosophy of growth. Something internal to the organization that caused it to seek ways to grow sales, win new customers, develop new products. Fisher obviously wanted a great organization in an industry with great long-term prospects. But I think a lot of growth investors focus more on the latter issue than Fisher would. I know they don�� focus enough on the first issue. Fisher wanted a great organization first and foremost.

    I�� not sure any of the stocks I��e mentioned in this article are necessarily good buys. The one exception is Wells Fargo. I�� never comfortable calling a bank entirely safe. So I�� less sure about suggesting any financial stock as a good buy than I am about stocks in most industries. But if you look at what Wells Fargo has achieved and what they are likely to achieve over the next ten years or so and then consider the price you are paying f

  • [By Teresa Rivas]

    Danaher (DHR) and Waters Corporation (WAT) were mirror images of one another, with the former rising 1.3% at recent check and the latter falling by 1.3%.

Tuesday, February 10, 2015

Is Ford Taking a Huge Risk in This Battle for the Automotive Industry?

The auto industry has seen its share of battles over the years. From the simple domestic rivalry between Ford  (NYSE: F  )  and GM  (NYSE: GM  ) , to the industry's epic battle for survival during the credit crisis. Today, a new battle is brewing in the industry in light of our nation's drive to become more fuel efficient. This new battle pits aluminum against lighter weight steel.

Could the next Ford F-150 have an aluminum body? Photo Credit: Ford 

There are rumors the next Ford F-150 will have an aluminum body, which would shave off about 700 pounds, or about 15% of its total body weight. The weight loss would be critical for the truck, as well as the Ford brand, to meet the new fuel-efficiency standards. The move is really an effort by Ford to get ahead of the curve as the move would equate to a 25% increase in fuel economy. 

Fuel efficiency in the U.S. must reach 54.5 MPG by 2025. To reach this level, weight reduction will be critical, which is where aluminum could come into play. In fact, a recent study emerged that bodes well for aluminum producers like Alcoa  (NYSE: AA  ) , as it concluded that an all-aluminum body could reduce weight in some vehicles by 40%, which would enable MPG efficiency to increase by 14%. This type of initiative could see aluminum usage in autos double from 2008 to 2025. Alcoa sees big potential for its business as the company forecasts 10 times more North American Aluminum Body Sheet content per vehicle (in pounds) by 2025 from 2012 levels (from 14 to 136 pounds). 

Both aluminum and steel desperately need the automotive sector's business. Steel has been a longtime supplier to the industry but has given way to aluminum recently due to manufacturers' focus on weight reduction as MPG efficiency standards have increased. While aluminum makes up a small portion of a car's total weight when compared to steel, the figure has grown from nearly nothing in only a few short years.

Steel will always have a place because it's critical for truck frames due to the heavy payloads they support. While Ford did look into an aluminum frame, it decided against the idea because so much more aluminum would be needed that it was cost prohibitive and didn't provide much weight reduction. That's one reason why United States Steel  (NYSE: X  )  believes it will be a big winner due to its cost structure and ability to produce lighter, stronger steel products. The company is continuously researching and developing new grades and processes to better align with its customers' needs. That's why it believes it can fend off aluminum's assault. 

In fact, Ford's chief domestic rival, GM, is taking a much different approach in it has decided to stick with steel for the body of its trucks. Instead, GM is focusing on improving engines and transmissions to reduce fuel consumption. It's also producing two different trucks, one focused on power and towing performance and a second smaller truck which will offer about 20% better gas mileage. While both versions will use aluminum, neither will do so to the extent of Ford. 

The choice between aluminum and steel could make or break these two sets of rivals. Ford's decision to cover its next-generation F-150 with aluminum is a big risk, though that does mean its rewards are substantial as well. That could mean big things for investors in Ford's stock.

Ford isn't one to shy away from risks in search of great rewards. The biggest potential reward for automakers these days is capturing sales growth in China, which is already the world's largest auto market – and it's set to grow even bigger in coming years. In a Motley Fool special report, "2 Automakers to Buy for a Surging Chinese Market", we name two global giants poised to reap big gains that could drive big rewards for investors. Are you curious to see if Ford is one of those names? You can find out by reading this report right now for free – just click here for instant access.