tdp2664
InvestorPlace
The U.S. economy grew at a disappointing 1.8% rate in the first quarter. But some states enjoyed much faster economic growth — among those is my home state of Massachusetts, which saw its economy spike 4.2%. And that faster growth is based on its high-tech companies. The best number in the federal government's GDP report — the 11.6% rise in technology spending — benefits Massachusetts significantly. Local economists attribute the state’s 4.2% GDP growth to its leading companies getting an above-average share of that corporate investment. Many Massachusetts-based companies likely received a good share of that spending. Here are three: EMC (NYSE: EMC ), a maker of data storage hardware and software, that recently reported first-quarter earnings growth of 28% to $477 million on 18% revenue growth to $4.61 billion Thermo Fisher Scientific (NYSE: TMO ), a designer and builder of scientific instruments, that reported first-quarter earnings growth of 8.5% to $252 million on 3.6% revenue growth to $2.7 billion Analog Devices (NYSE: ADI ), a semiconductor manufacturer, that reported first-quarter earnings growth of 83% to $222 million on 21% revenue growth to $729 million Using the trusty price-to-earnings-to-growth (PEG) ratio — a measure of how a stock’s market valuation compares to its growth prospects – let's rank these possible plays on Massachusetts’ growth rate from lowest to highest PEG: EMC — 1.63 . At a P/E of 31, its earnings are forecast to grow 19% to $1.42 a share in 2012 Thermo Fisher — 1.92. Its P/E is 23 and its earnings are forecast to grow 12% to $4.55 a share in 2012 Analog Devices – 2.23 . Its P/E is 15.4 and its earnings are forecast to grow 6.9% to $2.96 a share in 2012 Of these three, EMC looks to be the most likely to profit from the ongoing trend of corporate technology spending. If the more expensive Analog Devices can continue to boost earnings at the rate it did in the most recent quarter, its stock price could also benefit. Peter Cohan has no financial interest in the securities mentioned.
Saturday, April 30, 2011
3 Stocks Enjoying Massachusetts’ Tech Spending Boom
Markman: The Problem Facing Stocks
tdp2664
InvestorPlace
Connecting the dots from the companies that have shown earnings results, we can see that profit growth has confounded expectations by slowing down dramatically. I’m going to get right to the point — as Bob Dylan once said, “you don’t need a weatherman to know which way the wind blows.” It wasn’t supposed to be this way, but higher energy and food prices and slowing wage growth has proven to be a lethal one-two punch. Add on top of this the new fiscal restraint promised in Washington and the potential for an end to quantitative easing in June, and you can see why the summer could be a bit rougher than we anticipated. One major hedge fund economist that I deal with told me over the weekend that he has taken down his U.S. GDP forecast for 2011 to 2.5%, down from 3%, and downgraded his 2012 expectations too. “Fiscal rectitude is in until economic growth flags badly again,” he said. “Expect a fiscal drag through 2012 and beyond. Housing is stuck, employment growth will improve but remain subpar, consumption is being squeezed by the high price of gasoline, and the Obama Administration seems intent on a retrenchment in government spending after two years of stimulus. That’s not how they’re advertising it, but that will be the effect.” Quoting Dylan again: “The pump don’t work ’cause the vandals took the handles.” Everywhere you turn these days, you hear the same refrain. Two of my favorite mainstream economic analysts — Paul Ashworth at Capital Economics in Toronto, and Jan Hatzius at Goldman Sachs — both published reports on the subject last week, before the government released its initial first-quarter GDP estimate of 1.8%. Here are some selected excerpts (I have bolded key passages for emphasis): Paul Ashworth, at Capital Economics: ”Every data release last week seemed to necessitate a further downward revision to our first-quarter GDP growth forecast. By the end of the week when the dust had finally settled, that estimate was down to only 1% at an annualized pace. A week earlier we still thought that growth might have been as high as 2.5%. ”Going into the first quarter, it appeared that the economy had everything going for it. Growth had picked up over the final few months of last year, the labor market was finally showing signs of a more meaningful improvement and the policymakers had just delivered another round of monetary and fiscal stimulus. The surge in food and energy prices changed everything, however. Based on the retail sales and consumer prices figures for March, it looks like real consumption increased by only 1.6% in the first quarter, less than half the 4% pace seen in the fourth quarter of last year. … The relatively modest 0.5% m/m increase in business inventories in February was another unpleasant surprise, largely due to a 0.4% m/m decline in retail inventories . Remember these are nominal figures and so, in a month when producer prices increased by 0.7% m/m, in real terms business inventories most probably declined. Our latest calculations suggest that inventories had a broadly neutral impact on first-quarter GDP growth. ” ”If first-quarter GDP growth really was as low as 1.0%, it means that output increased by less than employment, which we already know expanded by 1.2% at an annualized pace. This did happen in the second quarter of last year, but only because of the spike in temporary Census-related hiring. ”Even allowing for the very modest increase in average hours worked, that combination of growth rates points to an outright fall in productivity. The strength of productivity growth through the recession and the earlier stages of the recovery was one of the main driving forces behind the strong rebound in corporate profits. Now, however, it looks like firms are finding it much harder to generate additional efficiency gains. … ”The debate surrounding the need to rein in the Federal budget deficit is now in full swing, with the Republicans and the Obama administration offering competing visions. The former want to balance the budget principally through steep cuts to spending, whereas the latter would also boost revenues by increasing taxes for high-income earners. “This talk of fiscal austerity is a marked change even from late last year when both sides were willing to sign up to the recent fiscal stimulus, which included not only further tax cuts, albeit temporary ones, but also the extension of some temporary spending programs. Only a few months later, both sides have agreed to cut spending by $38 billion over the remainder of the current fiscal year, which runs until the end of this September. … “We will have to wait until after next year’s Presidential election to see which view ultimately wins out based on the election results. Nevertheless, it now looks like fiscal austerity will be the number one election campaign battle. …
Build Profits With a Chicago Bridge Option
tdp2664
InvestorPlace
Overview Chicago Bridge and Iron (NYSE: CBI ) provides engineering, procurement, and construction solutions for customers in the energy and natural resources industries, primarily oil and gas companies. Customers include Chevron (NYSE: CVX ), Exxon Mobil (NYSE: XOM ) and ConocoPhillips (NYSE: COP ). CBI reported Tuesday earnings of $0.50 versus market estimates of $0.54, while revenues rose nearly 10%. It forecast revenue growth in its refinery market, and recently received new project awards with a value of $4.5 billion to $5 billion. CBI reaffirmed its EPS and that its long-term debt is trending lower. These factors contribute to our upbeat outlook for the construction and engineering sub-industry group. Option Trade With the stock trading at 40.65, we would consider selling the CBI June 39 Put for a premium of 1.30. The investors breakeven in the stock would be $37.70 ($39.00 – $1.30 = $37.70). If the stock were to trade below this level by the June expiration, the puts would be in the money and the investor would establish a long position at the 39 strike price. By selling the naked put, the investor has unlimited risk and must be willing to establish a long position if the puts expire in the money (below $37.70). Based on the recent stock reports, we would be comfortable if that were to occur. If the stock were to trade in its current range or higher come expiration, the investor would get to keep the premium from the sale of the puts. Some brokers restrict certain accounts from the sale of naked options. Check with your broker for its policy. Stutland Equities is a premier futures and options trading company on the Chicago Board Options Exchange. Founded in 2005 and headquartered in Chicago, Stutland Equities specializes in volatility arbitrage across multiple asset classes.
Top 10 Micro Cap Stocks with Highest Return on Equity: CGRE, SCEI, SCOK, VALU, GIGA, INTG, WRLS, NEP, PTX, ACAD (Apr 30, 2011)
tdp2664
Epic Stock Picks
Below are the top 10 Micro Cap stocks with highest Return on Equity (ROE) ratio for the last 12 months, UPDATED TODAY before 4:30 AM ET. ROE shows a company's efficiency in making profits from shareholders' equity. It is equal to net profits divided by shareholders' equity. Four Chinese companies (CGRE, SCEI, SCOK, NEP) are on the list. China Green Energy Industries Inc (NASDAQ:CGRE) has the 1st highest Return on Equity in this segment of the market. Its ROE was 145.55% for the last 12 months. Its net profit margin was 14.47% for the same period. Sino Clean Energy Inc. (NASDAQ:SCEI) has the 2nd highest Return on Equity in this segment of the market. Its ROE was 124.24% for the last 12 months. Its net profit margin was 45.17% for the same period. SinoCoking Coal and Coke Chem Ind, Inc. (NASDAQ:SCOK) has the 3rd highest Return on Equity in this segment of the market. Its ROE was 100.07% for the last 12 months. Its net profit margin was 64.23% for the same period. Value Line, Inc. (NASDAQ:VALU) has the 4th highest Return on Equity in this segment of the market. Its ROE was 91.79% for the last 12 months. Its net profit margin was 70.62% for the same period. Giga-tronics, Incorporated (NASDAQ:GIGA) has the 5th highest Return on Equity in this segment of the market. Its ROE was 87.91% for the last 12 months. Its net profit margin was 71.72% for the same period. The InterGroup Corporation (NASDAQ:INTG) has the 6th highest Return on Equity in this segment of the market. Its ROE was 84.88% for the last 12 months. Its net profit margin was 17.08% for the same period. Telular Corporation (NASDAQ:WRLS) has the 7th highest Return on Equity in this segment of the market. Its ROE was 77.81% for the last 12 months. Its net profit margin was 80.86% for the same period. China North East Petroleum Hldng Ltd. (AMEX:NEP) has the 8th highest Return on Equity in this segment of the market. Its ROE was 77.34% for the last 12 months. Its net profit margin was 62.98% for the same period. Pernix Therapeutics Holdings Inc (AMEX:PTX) has the 9th highest Return on Equity in this segment of the market. Its ROE was 76.90% for the last 12 months. Its net profit margin was 28.02% for the same period. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) has the 10th highest Return on Equity in this segment of the market. Its ROE was 72.43% for the last 12 months. Its net profit margin was 35.93% for the same period.
Top 10 Micro Cap Stocks with Highest Return on Equity: CGRE, SCEI, SCOK, VALU, GIGA, INTG, WRLS, NEP, PTX, ACAD (Apr 30, 2011)
ratio for the last 12 months, UPDATED TODAY before 4:30 AM ET. ROE shows a
companys efficiency in making profits from shareholders equity. It is equal to
net profits divided by shareholders equity. Four Chinese companies (CGRE, SCEI,
SCOK, NEP) are on the list. China Green Energy Industries Inc (NASDAQ:CGRE) has
the 1st highest Return on Equity in this segment of the market. Its ROE was
145.55% for the last 12 months. Its net profit margin was 14.47% for the same
period. Sino Clean Energy Inc. (NASDAQ:SCEI) has the 2nd highest Return on
Equity in this segment of the market. Its ROE was 124.24% for the last 12
months. Its net profit margin was 45.17% for the same period. SinoCoking Coal
and Coke Chem Ind, Inc. (NASDAQ:SCOK) has the 3rd highest Return on Equity in
this segment of the market. Its ROE was 100.07% for the last 12 months. Its net
profit margin was 64.23% for the same period. Value Line, Inc. (NASDAQ:VALU) has
the 4th highest Return on Equity in this segment of the market. Its ROE was
91.79% for the last 12 months. Its net profit margin was 70.62% for the same
period. Giga-tronics, Incorporated (NASDAQ:GIGA) has the 5th highest Return on
Equity in this segment of the market. Its ROE was 87.91% for the last 12 months.
Its net profit margin was 71.72% for the same period. The InterGroup Corporation
(NASDAQ:INTG) has the 6th highest Return on Equity in this segment of the
market. Its ROE was 84.88% for the last 12 months. Its net profit margin was
17.08% for the same period. Telular Corporation (NASDAQ:WRLS) has the 7th
highest Return on Equity in this segment of the market. Its ROE was 77.81% for
the last 12 months. Its net profit margin was 80.86% for the same period. China
North East Petroleum Hldng Ltd. (AMEX:NEP) has the 8th highest Return on Equity
in this segment of the market. Its ROE was 77.34% for the last 12 months. Its
net profit margin was 62.98% for the same period. Pernix Therapeutics Holdings
Inc (AMEX:PTX) has the 9th highest Return on Equity in this segment of the
market. Its ROE was 76.90% for the last 12 months. Its net profit margin was
28.02% for the same period. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) has the
10th highest Return on Equity in this segment of the market. Its ROE was 72.43%
for the last 12 months. Its net profit margin was 35.93% for the same period.
Top 10 Best-Performing Leisure Services Stocks Year-to-Date: TZOO, PCLN, SIX, FUN, CTRP, CNK, ISCA, MMYT, DVD, MLP (Apr 30, 2011)
tdp2664
China Analyst
Below are the top 10 best-performing Leisure Services stocks year-to-date, UPDATED TODAY before 4:30 AM ET. One Chinese company (CTRP) is on the list.
Travelzoo Inc. (NASDAQ:TZOO) is the 1st best-performing stock year-to-date in this segment of the market. It has risen 97.87% since the beginning of this year. Its price percentage change was 305.70% for the last 52 weeks. priceline.com Incorporated (NASDAQ:PCLN) is the 2nd best-performing stock year-to-date in this segment of the market. It has risen 36.91% since the beginning of this year. Its price percentage change was 100.37% for the last 52 weeks. Six Flags Entertainment Corp (NYSE:SIX) is the 3rd best-performing stock year-to-date in this segment of the market. It has risen 25.97% since the beginning of this year. Its price percentage change was N/A for the last 52 weeks. Cedar Fair, L.P. (NYSE:FUN) is the 4th best-performing stock year-to-date in this segment of the market. It has risen 25.33% since the beginning of this year. Its price percentage change was 25.25% for the last 52 weeks. Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) is the 5th best-performing stock year-to-date in this segment of the market. It has risen 20.44% since the beginning of this year. Its price percentage change was 29.85% for the last 52 weeks.
Cinemark Holdings, Inc. (NYSE:CNK) is the 6th best-performing stock year-to-date in this segment of the market. It has risen 17.92% since the beginning of this year. Its price percentage change was 8.43% for the last 52 weeks. International Speedway Corporation (NASDAQ:ISCA) is the 7th best-performing stock year-to-date in this segment of the market. It has risen 16.93% since the beginning of this year. Its price percentage change was -0.13% for the last 52 weeks. MakeMyTrip Limited (NASDAQ:MMYT) is the 8th best-performing stock year-to-date in this segment of the market. It has risen 16.65% since the beginning of this year. Its price percentage change was N/A for the last 52 weeks. Dover Motorsports, Inc. (NYSE:DVD) is the 9th best-performing stock year-to-date in this segment of the market. It has risen 9.55% since the beginning of this year. Its price percentage change was -14.85% for the last 52 weeks. Maui Land & Pineapple Co. (NYSE:MLP) is the 10th best-performing stock year-to-date in this segment of the market. It has risen 5.62% since the beginning of this year. Its price percentage change was 2.94% for the last 52 weeks.
Five 401k Funds to Hedge vs. Costly Oil
tdp2664
InvestorPlace
Big Oil is back. With persistently high crude oil prices, it would be nearly impossible to not make huge profits in this sector of the stock market. This week, Royal Dutch Shell (NYSE: RDS-A ) reported net income of $6.3 billion and ConocoPhillips (NYSE: COP ) announced a $3 billion gain. Even the beleaguered BP plc (NYSE: BP ) posted a profit of $5.48 billion. But the standout was Exxon Mobil (NYSE: XOM ). Its earnings surged by 69% to $10.7 billion. Some are saying Exxon profits in 2011 could top 2008 records. As should be no surprise, investors have been pouring money into the majors — as well as many other energy companies. It's been a red-hot trade. But if you do not have the time for analyzing and picking stocks, there are some good mutual funds to consider. Here’s a look at some oil mutual funds and ETF investments for your 401k: iShares Dow Jones U.S. Energy Sector Index Fund (IYE) This ETF is your simplest way to play Big Oil. The top holdings of the iShares Dow Jones U.S. Energy Sector Index Fund (NYSE: IYE ) include some of the biggest name in global energy and crude oil: Exxon Mobil (NYSE: XOM ) – 24% Chevron (NYSE: CVX ) – 12% Schlumberger (NYSE: SLB ) – 7% Conoco Phillips (NYSE: COP ) – 6% Occidental Petroleum (NYSE: OXY ) – 5%. Though the heavy focus on Exxon will skew the returns a bit towards the performance of this individual stock, it is diversified enough to give most investors peace of mind. And with a reasonable expense ratio of under 0.5% and a one-year return of 30% that has almost tripled the S&P 500′s performance, this ETF seems a powerful energy play right now. Fidelity Select Energy (FSENX) The oil business can be treacherous. Just consider that during the recent conflict in Libya, a variety of foreign oil companies have had to shut-down their operations and take losses. Another big risk is catastrophic failure, such as with off-shore rigs. Of course, this was the case with BP. But savvy portfolio managers understand the risks. And yes, it may mean having the guts to buy up shares of companies like BP at some point. This fearlessness is certainly a key attribute of John Dowd, who manages the Fidelity Select Energy (MUTF: FSENX ) fund, which has $3.1 billion in assets. True, his results can be subject to swings — and he may be early on his trades. But over time, there is usually a nice payoff. For the past year, the fund has returned 33.17%. Invesco Energy A (IENAX) The oil industry has a huge ecosystem. For example, there are services companies that help find new deposits and develop wells. As oil prices increase, these companies benefit from the increased capital investments. As for the Invesco Energy A (MUTF: IENAX ) oil mutual fund, the portfolio manager, Andrew Lees, likes the sector. For example, he has big stakes in Schlumberger (NYSE: SLB ), Halliburton (NYSE: HAL ) and Weatherford International (NYSE: WFT ). These companies often have lots of earnings leverage and can show spikes on the top-line. Vanguard Energy (VGENX) Oil stocks can easily go from being growth plays to value opportunities. But with the recent run-up in oil, the sector looks more like it's in the growth phase. So this can make things difficult for Vanguard Energy (MUTF: VGENX ), which has a penchant for finding values. Yet the fund has been able to locate some good investments. After all, even the majors like Exxon Mobil (NYSE: XOM ), Chevron (NYSE: CVX ) and Royal Dutch Shell (NYSE: RDS-A ) still look cheap. And yes, the Vanguard Energy fund has large stakes in these companies. Oh, and the fund also likes the services companies. Vanguard Energy has a buy-and-hold bent, with a turnover ratio of only 31%. The expense ratio is also at a low 0.34%. BlackRock Energy & Resources Investors A (SSGRX) Back in the 1990s, oil prices were fairly depressed. By 1998, a barrel of oil fetched a price below $10 per barrel. In the case of Dan Rice, who manages the $2 billion B lackRock Energy & Resources Investors A (MUTF: SSGRX ) fund, he knows that period quite well. Keep in mind that he has been at the helm of the fund since 1990. Thus, it should be no surprise that Rice keeps a close look at the global supply and demand for energy. He will then try to find those companies that look cheap in terms of their growth prospects. In fact, Rice will also invest in mid-caps and small caps. It’s a strategy that has worked extremely well. Rice has posted an annual average return of 18.44% over the past decade. Tom Taulli's latest book is " All About Short Selling " and his Twitter account is @ttaulli . He does not own a position in any of the stocks named here.
Top 10 Best-Performing Leisure Services Stocks Year-to-Date: TZOO, PCLN, SIX, FUN, CTRP, CNK, ISCA, MMYT, DVD, MLP (Apr 30, 2011)
UPDATED TODAY before 4:30 AM ET. One Chinese company (CTRP) is on the list.
Travelzoo Inc. (NASDAQ:TZOO) is the 1st best-performing stock year-to-date in
this segment of the market. It has risen 97.87% since the beginning of this
year. Its price percentage change was 305.70% for the last 52 weeks.
priceline.com Incorporated (NASDAQ:PCLN) is the 2nd best-performing stock
year-to-date in this segment of the market. It has risen 36.91% since the
beginning of this year. Its price percentage change was 100.37% for the last 52
weeks. Six Flags Entertainment Corp (NYSE:SIX) is the 3rd best-performing stock
year-to-date in this segment of the market. It has risen 25.97% since the
beginning of this year. Its price percentage change was N/A for the last 52
weeks. Cedar Fair, L.P. (NYSE:FUN) is the 4th best-performing stock year-to-date
in this segment of the market. It has risen 25.33% since the beginning of this
year. Its price percentage change was 25.25% for the last 52 weeks. Ctrip.com
International, Ltd. (ADR) (NASDAQ:CTRP) is the 5th best-performing stock
year-to-date in this segment of the market. It has risen 20.44% since the
beginning of this year. Its price percentage change was 29.85% for the last 52
weeks. Cinemark Holdings, Inc. (NYSE:CNK) is the 6th best-performing stock
year-to-date in this segment of the market. It has risen 17.92% since the
beginning of this year. Its price percentage change was 8.43% for the last 52
weeks. International Speedway Corporation (NASDAQ:ISCA) is the 7th
best-performing stock year-to-date in this segment of the market. It has risen
16.93% since the beginning of this year. Its price percentage change was -0.13%
for the last 52 weeks. MakeMyTrip Limited (NASDAQ:MMYT) is the 8th
best-performing stock year-to-date in this segment of the market. It has risen
16.65% since the beginning of this year. Its price percentage change was N/A for
the last 52 weeks. Dover Motorsports, Inc. (NYSE:DVD) is the 9th best-performing
stock year-to-date in this segment of the market. It has risen 9.55% since the
beginning of this year. Its price percentage change was -14.85% for the last 52
weeks. Maui Land & Pineapple Co. (NYSE:MLP) is the 10th best-performing stock
year-to-date in this segment of the market. It has risen 5.62% since the
beginning of this year. Its price percentage change was 2.94% for the last 52
weeks.
Five 401k Funds to Hedge vs. Costly Oil
impossible to not make huge profits in this sector of the stock market. This
week, Royal Dutch Shell (NYSE: RDS-A ) reported net income of $6.3 billion and
ConocoPhillips (NYSE: COP ) announced a $3 billion gain. Even the beleaguered BP
plc (NYSE: BP ) posted a profit of $5.48 billion. But the standout was Exxon
Mobil (NYSE: XOM ). Its earnings surged by 69% to $10.7 billion. Some are saying
Exxon profits in 2011 could top 2008 records. As should be no surprise,
investors have been pouring money into the majors as well as many other energy
companies. It's been a red-hot trade. But if you do not have the time for
analyzing and picking stocks, there are some good mutual funds to consider.
Heres a look at some oil mutual funds and ETF investments for your 401k: iShares
Dow Jones U.S. Energy Sector Index Fund (IYE) This ETF is your simplest way to
play Big Oil. The top holdings of the iShares Dow Jones U.S. Energy Sector Index
Fund (NYSE: IYE ) include some of the biggest name in global energy and crude
oil: Exxon Mobil (NYSE: XOM ) 24% Chevron (NYSE: CVX ) 12% Schlumberger (NYSE:
SLB ) 7% Conoco Phillips (NYSE: COP ) 6% Occidental Petroleum (NYSE: OXY )
5%. Though the heavy focus on Exxon will skew the returns a bit towards the
performance of this individual stock, it is diversified enough to give most
investors peace of mind. And with a reasonable expense ratio of under 0.5% and a
one-year return of 30% that has almost tripled the S&P 500s performance, this
ETF seems a powerful energy play right now. Fidelity Select Energy (FSENX) The
oil business can be treacherous. Just consider that during the recent conflict
in Libya, a variety of foreign oil companies have had to shut-down their
operations and take losses. Another big risk is catastrophic failure, such as
with off-shore rigs. Of course, this was the case with BP. But savvy portfolio
managers understand the risks. And yes, it may mean having the guts to buy up
shares of companies like BP at some point. This fearlessness is certainly a key
attribute of John Dowd, who manages the Fidelity Select Energy (MUTF: FSENX )
fund, which has $3.1 billion in assets. True, his results can be subject to
swings and he may be early on his trades. But over time, there is usually a
nice payoff. For the past year, the fund has returned 33.17%. Invesco Energy A
(IENAX) The oil industry has a huge ecosystem. For example, there are services
companies that help find new deposits and develop wells. As oil prices increase,
these companies benefit from the increased capital investments. As for the
Invesco Energy A (MUTF: IENAX ) oil mutual fund, the portfolio manager, Andrew
Lees, likes the sector. For example, he has big stakes in Schlumberger (NYSE:
SLB ), Halliburton (NYSE: HAL ) and Weatherford International (NYSE: WFT ).
These companies often have lots of earnings leverage and can show spikes on the
top-line. Vanguard Energy (VGENX) Oil stocks can easily go from being growth
plays to value opportunities. But with the recent run-up in oil, the sector
looks more like it's in the growth phase. So this can make things difficult
for Vanguard Energy (MUTF: VGENX ), which has a penchant for finding values. Yet
the fund has been able to locate some good investments. After all, even the
majors like Exxon Mobil (NYSE: XOM ), Chevron (NYSE: CVX ) and Royal Dutch Shell
(NYSE: RDS-A ) still look cheap. And yes, the Vanguard Energy fund has large
stakes in these companies. Oh, and the fund also likes the services companies.
Vanguard Energy has a buy-and-hold bent, with a turnover ratio of only 31%. The
expense ratio is also at a low 0.34%. BlackRock Energy & Resources Investors A
(SSGRX) Back in the 1990s, oil prices were fairly depressed. By 1998, a barrel
of oil fetched a price below $10 per barrel. In the case of Dan Rice, who
manages the $2 billion B lackRock Energy & Resources Investors A (MUTF: SSGRX )
fund, he knows that period quite well. Keep in mind that he has been at the helm
of the fund since 1990. Thus, it should be no surprise that Rice keeps a close
look at the global supply and demand for energy. He will then try to find those
companies that look cheap in terms of their growth prospects. In fact, Rice will
also invest in mid-caps and small caps. Its a strategy that has worked extremely
well. Rice has posted an annual average return of 18.44% over the past decade.
Tom Taulli's latest book is " All About Short Selling " and his Twitter
account is @ttaulli . He does not own a position in any of the stocks named
here.
Today’s Dow Jones Industrial Average Stock Market Index Close; Nasdaq and S&P 500 Notes; Dollar Drops Gold and Silver Rise
and the Japanese yen during the last trading session to close out the week in
the United States. The dollar dropped lower, but gold and silver contract rates
notched higher and stocks moved forward as well. The major market indices in the
United States all closed the last trading session in the green, due in part, to
the positive quarterly earning reports that dropped yesterday and throughout the
entire week. It was an especially good month for the Nasdaq and Dow Jones
Industrials. The Nasdaq closed out last session in the U.S. higher by .04
percent to finished the session at 2873.54. The S&P 500 closed out higher by
3.13 at 1363.61. The Dow Jones Industrial Average finished the session higher by
.37 percent at 12810.54. So far for 2011, April index values for the Dow and
Nasdaq closed out at levels better than any other monthly closing marks this
year. Solid gains for stocks posted Friday on the strength of earning reports.
Investors received an extra shot of confidence Friday when posted earnings from
Caterpillar were better than expected. Strong earnings figures have stocks
notching their way higher. Some analysts however are quick to point out that
company profits may be skewed in light of current inflation trends and soon to
be extinguished tax breaks. Author: Frank Matto
Today’s Dow Jones Industrial Average Stock Market Index Close; Nasdaq and S&P 500 Notes; Dollar Drops Gold and Silver Rise
dow2664
The dollar dropped once again as it fell lower to the euro, the British pound and the Japanese yen during the last trading session to close out the week in the United States. The dollar dropped lower, but gold and silver contract rates notched higher and stocks moved forward as well. The major market indices in the United States all closed the last trading session in the green, due in part, to the positive quarterly earning reports that dropped yesterday and throughout the entire week. It was an especially good month for the Nasdaq and Dow Jones Industrials. The Nasdaq closed out last session in the U.S. higher by .04 percent to finished the session at 2873.54. The S&P 500 closed out higher by 3.13 at 1363.61. The Dow Jones Industrial Average finished the session higher by .37 percent at 12810.54. So far for 2011, April index values for the Dow and Nasdaq closed out at levels better than any other monthly closing marks this year. Solid gains for stocks posted Friday on the strength of earning reports. Investors received an extra shot of confidence Friday when posted earnings from Caterpillar were better than expected. Strong earnings figures have stocks notching their way higher. Some analysts however are quick to point out that company profits may be skewed in light of current inflation trends and soon to be extinguished tax breaks. Author: Frank Matto
3 Tech Services Stocks Worth Downloading
tdp2664
InvestorPlace
Companies in the information technology services industry have seen some tough times lately. The combination of a weak dollar and reduced corporate tech spending (due to the economic recession) resulted in a decline of 5.6% in 2009 (the industry’s worst ever year) and a paltry growth figure of 3.3% in 2010. Well-diversified large-cap companies such as IBM (NASDAQ: IBM ) and Hewlett-Packard (NYSE: HPQ ) escaped relatively unscathed. However, companies such as Wipro (NASDAQ: WIT ) felt the pinch as their stocks dropped from a high of $18.41 in January 2007 to $5.11 in March 2009. Things may change this year, however. Gartner forecasts that worldwide IT spending will total $3.6 trillion in 2011, a 5.6% increase from last year. Typically, this rise should translate into increased business for IT services companies as more work is outsourced. In addition, new financial regulations such as the Dodd-Frank law should increase demand for software and IT consultants as investment firms scramble to comply with new reporting requirements. But keep in mind: Gartner’s figures comprise corporate expenditure on enterprise software, hardware — and consumer technology such as tablets. In fact, corporate spending on tablets is expected to increase by an annual compound growth rate of 52% by 2015. In comparison, IT services spending will only grow 5%. Similarly, according to the TPI, a Connecticut-based data and information advisory firm, the total commercial value of outsourcing contracts during the first quarter of 2011 was $17.5 billion, a decline of 25 percent as compared to the last quarter and 28 percent during the same period last year. Still, the tech services industry is a high-margin business with a well-established presence across all seftors Here are three IT services companies that could be good buys for investors: Wipro : This Bangalore-based outsourcing firm recently underwent a management change. After bottoming out through most of 2009, its stock price has clawed back up to a respectable $14 – $15 range. With a well-diversified client base across geographies (Europe accounted for double-digit growth for the second successive time this quarter) and projected increased demand, the company is poised to reap the rewards of an uptick in the world economy. Computer Sciences (NYSE: CSC ) One of the largest and oldest players in the IT services industry, CSC was in the news last year after it failed to install its first patient administration system for the National Health Service in the U.K. The contract was worth $1.3 billion. However, the news barely caused a ripple in the company’s stock price. Given the breadth of its business, which includes a high-margin consulting business and a deep knowledge and experience of customer systems (which increases switching costs for existing customers), increased demand should be good news for this company. Cognizant Tech (NASDAQ: CTSH ): Although it is a relatively young company, Cognizant has been among the fastest-growing services firms. Its stock price has zoomed to $81.95, an increase of about 173% since 2007. Incidentally, the stock was trading at similar price levels when it was split. A presence in almost all sectors (including a fast-growing and lucrative financial services practice), initiatives in so-called cloud computing and healthy operating margins of 20% should make sure that Cognizant keeps investors happy.
3 Tech Services Stocks Worth Downloading
times lately. The combination of a weak dollar and reduced corporate tech
spending (due to the economic recession) resulted in a decline of 5.6% in 2009
(the industrys worst ever year) and a paltry growth figure of 3.3% in 2010.
Well-diversified large-cap companies such as IBM (NASDAQ: IBM ) and
Hewlett-Packard (NYSE: HPQ ) escaped relatively unscathed. However,
companies such as Wipro (NASDAQ: WIT ) felt the pinch as their stocks dropped
from a high of $18.41 in January 2007 to $5.11 in March 2009. Things may
change this year, however. Gartner forecasts that worldwide IT spending will
total $3.6 trillion in 2011, a 5.6% increase from last year. Typically, this
rise should translate into increased business for IT services companies as more
work is outsourced. In addition, new financial regulations such as the
Dodd-Frank law should increase demand for software and IT consultants as
investment firms scramble to comply with new reporting requirements. But
keep in mind: Gartners figures comprise corporate expenditure on enterprise
software, hardware and consumer technology such as tablets. In fact, corporate
spending on tablets is expected to increase by an annual compound growth rate of
52% by 2015. In comparison, IT services spending will only grow 5%. Similarly,
according to the TPI, a Connecticut-based data and information advisory firm,
the total commercial value of outsourcing contracts during the first quarter of
2011 was $17.5 billion, a decline of 25 percent as compared to the last quarter
and 28 percent during the same period last year. Still, the tech services
industry is a high-margin business with a well-established presence across all
seftors Here are three IT services companies that could be good buys for
investors: Wipro : This Bangalore-based outsourcing firm recently underwent a
management change. After bottoming out through most of 2009, its stock price has
clawed back up to a respectable $14 $15 range. With a well-diversified client
base across geographies (Europe accounted for double-digit growth for the second
successive time this quarter) and projected increased demand, the company is
poised to reap the rewards of an uptick in the world economy. Computer
Sciences (NYSE: CSC ) One of the largest and oldest players in the IT services
industry, CSC was in the news last year after it failed to install its first
patient administration system for the National Health Service in the U.K. The
contract was worth $1.3 billion. However, the news barely caused a ripple in the
companys stock price. Given the breadth of its business, which includes a
high-margin consulting business and a deep knowledge and experience of customer
systems (which increases switching costs for existing customers), increased
demand should be good news for this company. Cognizant Tech (NASDAQ: CTSH ):
Although it is a relatively young company, Cognizant has been among the
fastest-growing services firms. Its stock price has zoomed to $81.95, an
increase of about 173% since 2007. Incidentally, the stock was trading at
similar price levels when it was split. A presence in almost all sectors
(including a fast-growing and lucrative financial services practice),
initiatives in so-called cloud computing and healthy operating margins of 20%
should make sure that Cognizant keeps investors happy.
Markman: Why Bonds Have More Room to Go
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InvestorPlace
Investors felt a chill when Standard & Poor’s recently downgraded its outlook on the AAA-rated debt of the U.S. to “negative” from stable. Yet credit investors never blinked an eye. As one veteran debt analyst pointed out, “Stock investors panicked about the prospect of the credit boom ending, yet the people responsible for the credit boom had no reaction!” Equity investors’ concerns do have some merit, as the U.S. has created a structural budget deficit of epic proportions. But it’s already been 30 months since the government announced it would go deeply into the red to finance a stimulus. And the rating agency just noticed? Credit investors’ insouciance may be counter-intuitive, but it makes sense if you understand their role in this cycle. They are so desperate for yield that they will lever up and buy anything and everything with a coupon until they get hit with margin calls. Since we are early in this process, according to the credit analysts I follow, margin calls are unlikely for two to five years. Bonds have progressed so much more smoothly during all the quake and North African troubles because credit investors have been chill and professional about buying steadily in all conditions, while stock investors have been manic. Chief investment officers at pension funds are focused on making 7.5% to 8% annual gains in credit, and an S&P outlook change will not stop them. Consider that just in the past several weeks, some states announced pension funding gaps of more than 25%, growing by more than $1 billion over prior estimates. Pension fund managers are responsible for hitting their marks to make sure retirees get what they are owed, and they will move heaven and earth to do it or face the loss of their jobs. Another example of what they face: The Texas teachers’ pension fund needs to earn 21% over the rest of the year just to maintain its underfunding at 20%. They would have to buy 1% bonds at a leverage of 20x to hit that mark, so you can see why an outlook change is not even on their radar. The upshot is that bond prices are going to remain firm, both in the government, investment-grade and junk realms, as funds play catch-up after their massive losses of 2007-2008. And as long as that is true, all dips in the stock market will be resolved to the upside because corporate leaders will leverage the credit market to get their stock prices up via mergers and buybacks. You can be sure that this will end badly after the credit boom has run out of steam, but probably not for another two to five years — which is much longer than most equity investors expect. Moreover, I am probably more skeptical about the quality of Standard & Poor’s work than most people after studying the organization for a long time.
Verizon Communications (NYSE:VZ) Developing Green Metrics
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E money daily
Verizon Communications (NYSE:VZ) has developed a carbon intensity metric to help measure the impact of green initiatives. Verizon Communications (NYSE:VZ) Developing Green Metrics Verizon Communications (NYSE:VZ), the U.S. communications provider, announced that its Sustainability Office has developed its first metric to measure carbon efficiency, named 'carbon intensity metric', which will help the company to measure the effects of its environmental initiatives. Chief sustainability officer at Verizon Communications (NYSE:VZ) James Gowen said, “We developed this metric because we are a network company, and our core measure is the amount of information we transport on our network. So this ratio is closely aligned with our business and will allow us to assess how we are becoming more energy efficient even as our business expands”. Verizon Communications Inc. (NYSE:VZ) shares were at 38.27 at the end of the last day’s trading. There’s been a 5.1% movement in the stock price over the past 3 months. Verizon Communications Inc. (NYSE:VZ) Analyst Advice Consensus Opinion: Hold Mean recommendation: 2.35 (1=Strong Buy, 5=Strong Sell) 3 Months Ago: 2.44 Zack’s Rank: 12 out of 37 in the industry
The Entire Week's Trading had the Look of Past Silver and Gold Price Peaks
52.80 or 3.5% Silver Price Close Today : 4858.4 Silver Price Close 21-Apr :
4606.2 Change : 252.20 or 5.5% Gold Silver Ratio Today : 32.027 Gold Silver
Ratio 21-Apr : 32.634 Change : -0.61 or -1.9% Silver Gold Ratio : 0.03122 Silver
Gold Ratio 21-Apr : 0.03064 Change : 0.00058 or 1.9% Dow in Gold Dollars : $
170.19 Dow in Gold Dollars 21-Apr : $ 171.98 Change : $ (1.79) or -1.0% Dow in
Gold Ounces : 8.233 Dow in Gold Ounces 21-Apr : 8.320 Change : -0.09 or -1.0%
Dow in Silver Ounces : 263.68 Dow in Silver Ounces 21-Apr : 271.50 Change :
-7.83 or -2.9% Dow Industrial : 12,810.54 Dow Industrial 21-Apr : 12,505.99
Change : 304.55 or 2.4% S&P 500 : 1,363.61 S&P 500 21-Apr : 1,337.38 Change :
26.23 or 2.0% US Dollar Index : 73.050 US Dollar Index 21-Apr : 74.096 Change :
-1.046 or -1.4% Platinum Price Close Today : 1,874.90 Platinum Price Close
21-Apr : 1,816.50 Change : 58.40 or 3.2% Palladium Price Close Today : 794.45
Palladium Price Close 21-Apr : 768.85 Change : 25.60 or 3.3% In my unmannerly
haste and thoughtless last night I neglected to mention the poor tornado victims
in Alabama, and urge y'all to pray for their relief. Our county borders on
Alabama, and there were tornadoes all around us, even on the counties on either
side of us. I must apologize also that we were out of the office a large slice
of today, attending a funeral not connected to the tornadoes, but just over in
Alabama. Driving back into Tennessee every car on the four lane highway stopped
and pulled over until the funeral procession passed. So did the men mowing their
yards. If you want to know what kind of people live in Alabama, THAT kind of
people. Been rode so hard and put away so wet today I think my metaphor and
simile tanks are plumb dry, but I'll try anyway. What a week! After gobbling up
8.5% last week, SILVER chomped down another 5.5% this week, GOLD played catch-up
with a 3.5% gain, and PLATINUM and PALLADIUM woke up, but something strange
happened today. More later. Stocks gained this week, but not nearly as much as
gold, while the Bernancubus torpedoed the dollar, which was not a good idea
since it was already gunwales to the waterline. Alas, I ken not the wisdom of
the mighty, and am such a rube that their cleverness appears to me only -- dare
I reveal my own obtuseness in the face of their sophistication? -- garden
variety stupidity,. Thus I grasp not how killing your own currency will help
your economy. I told y'all I was obtuse. The US DOLLAR INDEX today slowed its
slide for the weekend. Today it lost only 7.1 basis points and came to rest on
the ledge-lip of 73 at 73.05. Technically you must believe it is headed for
70.70 (2008 low) soon and 40 eventually, but WAIT! Remember that all currency
exchange rates are played with by central bankers as wanton boys do play with
flies. They love nothing better than to seduce a market all in one direction --
like all the dollar shorts/euro longs right now -- then reverse their field to
punish all the trend followers. Oh, and to make the world fear them and believe
they are doing something. Well, they ARE doing something, namely, what they are
supposed to be doing: managing inflation expectations, so that the whole herd
runneth not out of their phony money at the same time. Euro made another new
high today, right now at 1.4807, but closed lower. After six days rising, that
might not mean much, but could be a key reversal. Yen rose again, to Y81.19/$
(123.17c/Y100). Stocks rose today. Dow added 47.23 to close at 12,810.54 and the
S&P followed along, gaining 3.13 to 1363.61. Note, I beg, that despite these
gains, stocks fell against silver and gold. I keep telling y'all that because I
know your ears are dinned by all the mainstream, conventional, degreed,
accredited, certified, MBA'd, polished, suited, and universally admired
advisors, brokers, and media pundits. They all keep touting stocks for the same
reason the man who owns the liquor store keeps that neon light in his window: he
is selling his product. Or, look at it this way: when all you have is a hammer,
everything looks like a nail. They have no screwdriver, no impact wrench, no
saw, no Gorilla glue, no tacks, just the hammer of stocks. And with astonishing,
nay, breathtaking ignorance they recommend you buy stocks even though STOCKS
REMAIN IN A PRIMARY DOWN TREND. Besides, I've learned something in nearly 64
years: those who do not know talk, those who know, do, and talk not. Search out
the fellow who is succeeding, never mind how spiffy he dresses and talks, and
watch him. You might learn something. Fact is, nowadays when folks start
flashing them degrees at me, I just yawn and look for a better game. They have
all been taught to think, all right, but all wrong. The Gold Price today took
off and by the time they were turning the key to lock Comex's doors, the Gold
Price had risen a massive $25.20 to close at $1,556. No laggard, the Silver
Price rose 106.4c to 4858.4c at closing, yielding a gold/silver ratio of 32.027.
Then something very odd happened. The Silver Price was rocking along about 4850c
-- after Comex closed, maybe 1:30 or 2:00 our time -- when suddenly it lost
about 70 cents, to 4750. Fell clean through a trap door, and took the ratio to
32.655. No news story precipitated that, and at the same time the Gold Price
ROSE, to $1,565-ish, as if somebody were doing a MASSIVE silver to gold swap all
at once. For silver that is lousy behavior, worse coming on the heels of this
week's volatility. It certainly poses the first half of a key reversal, and it's
up to silver to disprove that on Monday. Between silver and gold the entire
week's trading had the look of past silver and gold peaks. Monday saw a new
intraday high in the Silver Price -- 4982c -- and a new high closing ratio
(31.99) -- but a 218c decline from high to low, even though Comex Monday closed
higher than the previous trading day. This hot and cold indecision may arise
from nothing more than all the radiation pouring off the old 5000c high as the
Silver Price braces itself to breach that barrier. But mayhap also it is that
faltering and fluttering often seen at tops, like a baby bird flopping on the
ground, trying to get back up in the air but out of strength. Today's
unexplained Silver Price fainting spell doesn't build confidence. Just ask Dale
Carnegie. But mercy! What would have to happen to reverse silver? The 20 day
moving average, tripwire of a decline, stands at 4286c, some five bucks below
current price. And the Silver Price must break that line to turn down.
Everything else I have said is mere suspicion and anticipation. Well, I will add
that the Silver Price is more oversold than Barack Obama in 2008, and gold
nearly so badly. But "oversold" can persist a long time (in some cases 4 years).
Mainly the ratio's action sets the inside of my head to itching. A new low, then
a sudden rise (33.002 on 27 April), when it hasn't been doing that. And there's
that parabola on silver's chart. All this implies that the road ahead is washed
out someplace. Here are some brackets: The Gold Price keeps on rallying as long
as it closeth not under $1,505. 20 dma stands at 1,484, support at $1,445. Break
that and it might reach $1,380. Upside you are looking now at $1,600 very soon,
maybe higher. The Silver Price must not lose its grip on 4750c. Below that
support shows up at 4400c, and the 20 dma at 4286c, then 3600c. I have no upside
target for the Silver Price, and have not a clue how one might forecast same.
Let's guess and say that of course 5000c, the 1980 high, will be tough to break.
But what if silver breaks through? What then? A ratio at 28:1? Possible, I
reckon, but can that happen without SOME reaction first? Y'all enjoy your
weekend. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2011, The
Moneychanger. May not be republished in any form, including electronically,
without our express permission. To avoid confusion, please remember that the
comments above have a very short time horizon. Always invest with the primary
trend. Gold's primary trend is up, targeting at least $3,130.00; silver's
primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend
is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or
US$-denominated assets, primary trend down; real estate in a bubble, primary
trend way down. Whenever I write "Stay out of stocks" readers inevitably ask,
"Do you mean precious metals mining stocks, too?" No, I don't.
Weekend Shopping: Bloomingdale's Mega Beauty 101 events; Annina Vogel trunk show; EM Production's blow-out sample sale
A few notable happenings for a more stylish weekend:
EVENTS
Annina Vogel event Friday and Saturday: Shop the Annina Vogel collection of rare antique British gold charms, chains, necklaces, bracelets and rings — or create your own bespoke piece at this special trunk show.
Friday at Maxfield in L.A., 8825 Melrose Ave., Los Angeles. (310) 274-8800. Noon to 6 p.m. Saturday at Maxfield in Malibu, 3939 Cross Creek Road, Malibu. (310) 270-9009. Noon to 6 p.m.
Bloomingdale's Mega Beauty 101 events Saturday: Join Ashlan Gorse from E! News and Erin Magner, beauty editor for Angeleno Magazine, for a special presentation devoted to this season's beauty trends. Billed as a “one-of-a-kind spa experience,” the event will include a men's pampering station, spa services, blow-drys and hair styling.
Central quad adjacent to Bloomingdale's at Westfield Century City, 10250 Santa Monica Blvd., Los Angeles. To schedule an appointment, call (310) 772-2129. 1 to 4 p.m.
Bloomingdale's Mega Beauty 101 events Saturday: BellaSugar.com editor Susan Yara hosts a beauty event where pros share tips on cosmetics, skincare and fragrance. Guests can go from counter to counter to collect samples and receive consultations. Entry is $25, redeemable for product during the event.
Bloomingdale's Santa Monica Place, cosmetics counters, 315 Colorado Ave., Santa Monica. To schedule an appointment, call (310) 985-6429. 3 to 5 p.m.
Designer Michael Aram appearance Saturday: Bloomingdale's Sherman Oaks welcomes jewelry designer Michael Aram, who will present his new artisan collection and even personalize pieces for customers. Receive a special gift with your $150 purchase.
Bloomingdale's Sherman Oaks, 14060 Riverside Drive, Sherman Oaks, Tabletop, Level 3. To RSVP, call (818) 325-2455.
SALES
EM Productions sample sale Friday: Score deep discounts on cool contemporary brands including Seneca Rising, Wren, Grey Ant, Gar-de, Black Crane, Something Else and VEDA on the second day of this sample sale. Hit up the ATM before you go — it's cash only.
860 S. Los Angeles St., #402, Los Angeles.
– Emili Vesilind
Photo: Designs by Annina Vogel. Credit: Annina Vogel.
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