Saturday, November 30, 2013

10 Best Low Price Stocks To Watch Right Now

J.C. Penney wants to carol its way back into the hearts of consumers this holiday season with a new "Jingle More Bells" marketing campaign launching this week.

Penney's holiday strategy focuses on driving traffic into stores and restoring faith in the brand with six straight weeks of promotions ��a leap from Johnson's emphasis on everyday low prices. Low prices will be emphasized through music in the "Jingle More Bells" campaign, including the release of a new TV spot every week through the end of December. The spots will feature twists on classic holiday songs to promote in-store sales.

The first spot features a play on "Santa Baby," where carolers urge Santa to "slip a discount under the tree."

Blake Shelton, the JCP Cares ambassador, will perform at the Manhattan Mall store on Dec. 19. The event is a part of the retailer's social media campaign that allows customers to upload a video of themselves singing "Silent Night" to be featured in a virtual holiday performance on the same day.

10 Best Low Price Stocks To Watch Right Now: ARM Holdings PLC (ARMH.O)

ARM Holdings plc (ARM), incorporated on October 16, 1990, designs microprocessors, physical intellectual property (IP) and related technology and software, and sells development tools. As of December 31, 2012, the Company operated in three business segments: the Processor Division (PD), the Physical IP Division (PIPD) and the System Design Division (SDD). ARM licenses and sells its technology and products to international electronics companies, which in turn manufacture, markets and sells microprocessors, application-specific integrated circuits (ASICs) and application-specific standard processors (ASSPs) based on ARM�� technology to systems companies for incorporation into a range of end products. It also licenses and sells development tools directly to systems companies and provides support services to its licensees, systems companies and other systems designers.

ARM processor architecture and physical IP is used in embedded microprocessor applications , including cellular phones, digital televisions, mobile computers and personal computer peripherals, smart cards and microcontrollers. ARM�� principal geographic markets are Europe, the United States and Asia Pacific. ARM�� product offering includes microprocessor Cores: RISC microprocessor cores, including specific functions, such as video and graphics IP and on-chip fabric IP; embedded software; physical IP; development tools, and support and maintenance services.

Processor Division

The PD encompasses those resources that are centered on microprocessor cores, including specific functions, such as graphics IP, fabric IP, embedded software IP and configurable digital signal processing (DSP) IP. Service revenues consist of design consulting services and revenues from support, maintenance and training.

Physical IP Division

The PIPD is focused on building blocks for translation of a circuit design into actual silicon. Du ring the year ended December 31, 2012, the Company�� tot! al! average PIPD headcount was 557. ARM is a provider of physical IP components for the design and manufacture of integrated circuits, including systems-on-chip (SoCs). ARM Artisan physical IP products include embedded memory, standard cell and input/output components. Artisan physical IP also includes a limited portfolio of analog and mixed-signal products. ARM�� physical IP components are developed for a range of process geometries ranging from 20 nanometer - 250 nanometer. ARM licenses its products to customers for the design and manufacture of integrated circuits used in complex, high-volume applications, such as portable computing devices, communication systems, cellular phones, microcontrollers, consumer multimedia products, automotive electronics, personal computers and workstations and many others.

ARM�� embedded memory components include random access memories, read only memories and register files. These memories are provided in the form of a configur able memory compiler, which allows the customer to generate the appropriate configuration for the given application. ARM�� memory components include many configurable features, such as power-down modes, low-voltage data retention and fully static operation, as well as different transistor options to trade off performance and power. In addition, ARM�� memory components include built-in test interfaces that support the industry test methodologies and tools. ARM memory components also offer redundant storage elements.

ARM�� memory components are designed to enable the chip designer maximum flexibility to achieve the optimum power, performance, and density trade-off. ARM offers standard cell components that are optimized for high performance, high density or ultra high density. ARM logic products deliver optimal performance, power and area when building ARM Processors, Graphics, Video and Fabric IP along with general SoC subsystem implementation. ARM delivers physical interface for a range of DDR SDRAM (double-data! rat! e s! ynchro! nous dynamic random-access memory) applications ranging from mission critical applications to low-power memory sub-systems. Silicon on Insulator (SOI) products is an alternative methodology to traditional semiconductor fabrication techniques.

System Design Division

The SDD is focused on the tools and models used to create and debug software and system-on-chip (SoC) designs. ARM�� software development tools help a software design engineer deliver products right the first time. Engineers use these tools in the design and deployment of code, from applications running on open operating systems right through to low-level firmware. The ARM Development Studio is a hardware components that allow the software designer to connect to a real target system and control the system for the purposes of finding errors in the software. The ARM DSTREAM unit allows the software developer to control the software running on the prototype product and examine the internal state of the prototype product. ARM Development Boards are ideal systems for prototyping ARM-based products. The ARM Microcontroller Development Kit supports ARM-based microcontrollers and 8051-based microcontrollers from companies, such as Analog Devices, Atmel, Freescale, Fujitsu, NXP, Samsung, Sharp, STMicroelectronics, Texas Instruments and Toshiba. The ARM Microcontroller Development Kit is used by developers who are building products and writing software using standard off-the-shelf microcontrollers.

The ARM Microprocessor Families

ARM architecture processors offers a range of performance options in the ARM7 family, ARM9 family, ARM11 family, ARM Cortex family and ARM SecurCore family. The ARM architecture gives systems designers a choice of processor cores at different performance/price points. The ARM7 offers 32-bit architecture capable of operating from 8/16-bit memory on an 8/16-bit bus through the implementation of the Thumb instruction set. The ARM9 family consists of a range of micropro! cessors !! in the 15! 0-250MHz range. Each processor has been designed for a specific application or function, such as an application processor for a feature phone or running a wireless fidelity (WiFi) protocol stack. The ARM9 family consists of a range of microprocessors in the 150-250 megahertz range. The ARM11 family consists of a range of microprocessors in the 300-600 megahertz range. ARM Cortex family is ARM�� family of processor cores based on version 7 of the ARM Architecture. The family is split into three series: A Series, A Series and M Series.

10 Best Low Price Stocks To Watch Right Now: Globecomm Systems Inc. (GCOM)

Globecomm Systems Inc. engages in the provision of satellite-based network solutions to government, communications service providers, commercial enterprises, and media and content broadcasters in the United States, Europe, South America, Africa, the Middle East, and Asia. It offers access products for providing data, voice, and video transport services; hosted application products for back office applications services; and professional services, including advisory and consulting services. The company also provides life cycle support services comprising installation, network monitoring, help desk, maintenance, and professional engineering services that supports access and hosted products; and infrastructure solutions, such as design, engineering, and installation of ground segment systems and networks, which are used in communications and media delivery networks. In addition, it offers fixed satellite terminals under the Summit brand; transportable satellite terminals under the Explorer brand; and network management systems to manage, monitor, and control networks under the AxxSys brand name, as well as systems design and integration products. The company was founded in 1994 and is headquartered in Hauppauge, New York.

Advisors' Opinion:
  • [By Rich Smith]

    Instead, the winners who will compete among themselves to fulfill the $45 million firm-fixed-price, multiple-award, indefinite-delivery/indefinite-quantity contract include privately held Bluewater Communications Group LLC, small-cap Globecomm Systems (NASDAQ: GCOM  ) , and TVC Communications LLC, of Annville, Penn., a small subsidiary of larger electronics distributor WESCO International (NYSE: WCC  ) . All three will now be competing against each other to win the Pentagon's business on individual task orders for the Cisco and other HD equipment on order.

Top 5 Energy Stocks To Own Right Now: Old Second Bancorp Inc.(OSBC)

Old Second Bancorp, Inc. operates as a bank holding company for Old Second National Bank that provides commercial and retail banking services. It offers various consumer and commercial products and services, including demand, NOW, money market, savings, time deposit, individual retirement, and Keogh deposit accounts. The company also provides business loans comprising lines of credit for working capital and operational purposes; term loans for the acquisition of equipment; commercial and residential real estate loans; construction loans; and consumer loans, such as motor vehicle, home improvement, home equity, signature loans, and small personal credit lines. In addition, the company offers installment lending services comprising direct and indirect loans to consumers and commercial customers; and residential mortgages, which include conventional, government, and jumbo loans, as well as provides a range of trust, investment, agency, and custodial services for individual, c orporate, and not-for-profit clients. Further, it offers wealth management services; and additional services, such as the acquisition of the United States treasury notes and bonds, the sale of traveler?s checks, money orders, cashier?s checks and foreign currency, direct deposit, discount brokerage, debit and credit cards, and other special services. Additionally, the company provides electronic banking services that comprise Internet banking; and corporate cash management products consisting of remote deposit capture, investment sweep accounts, zero balance accounts, automated tax payments, ATM access, telephone banking, lockbox, automated clearing house transactions, account reconciliation, controlled disbursement, detail and general information reporting, wire transfers, vault services for currency and coin, and checking accounts. As of December 31, 2010, it operated 27 branches and 1 satellite facility in Illinois. The company was founded in 1982 and is headquartered i n Aurora, Illinois.

10 Best Low Price Stocks To Watch Right Now: Navios Maritime Partners LP (NMM)

Navios Maritime Partners L.P. (Navios Partners) is an international owner and operator of dry cargo vessels formed by Navios Holdings. Navios GP L.L.C. (the General Partner), a wholly owned subsidiary of Navios Maritime Holdings Inc. (Navios Holdings) acts as the general partner of Navios Partners and received a 2% general partner interest in Navios Partners. Navios Partners is engaged in the seaborne transportation services of a range of drybulk commodities, including iron ore, coal, grain and fertilizer, chartering its vessels under medium to long-term charters. On May 19, 2011, Navios Partners acquired from Navios Holdings the Navios Orbiter, a 76,602 deadweight Panamax vessel. On May 19, 2011, Navios Partners acquired from Navios Holdings the Navios Luz. In June 2012, the Company purchased the Navios Buena Ventura, a 2010 South-Korean-built Capesize vessel of 179,259 dwt from Navios Maritime Holdings Inc.

The Company is an international owner and operator of drybulk carriers formed by Navios Maritime Holdings Inc., a vertically integrated seaborne shipping company. Its vessels are chartered-out under medium to long-term time charters with an average remaining term of approximately four years to a group of counterparties, consisting of Cosco Bulk Carrier Co. Ltd., Mitsui O.S.K. Lines Ltd., Samsun Logix, STX Panocean, Sanko Steamship Co. Ltd., Daiichi Chuo Kisen Kaisha, Augustea Imprese Maritime, Rio Tinto, Constellation Energy Group and Mansel.

As of December 31, 2011, the Company�� fleet consisted of 11 Panamax vessels, six Capesize vessels and one Ultra-Handymax vessel. Its fleet of dry cargo vessels has an average age of approximately 5.6 years. Panamax vessels are flexible vessels capable of carrying a range of drybulk commodities, including iron ore, coal, grain and fertilizer. All of its vessels operate under medium to long-term time charters of three or more years at inception with counterparties. It also operates vessels in the spot market until the vessels have! been fixed under appropriate medium to long-term charters.

The Company competes with China Ocean Shipping, China Shipping Group, Mitsui O.S.K. Lines, Kawasaki Kisen, Nippon Yusen Kaisha, Cargill, Pacific Basin Shipping, Bocimar, Zodiac Maritime, Louis Dreyfus/Cetragpa, Cobelfret and Torvald Klaveness.

Advisors' Opinion:
  • [By Igor Greenwald]

    Our Aggressive Portfolio already includes one beneficiary of these trends��avios Maritime Partners (NMM), a partnership with 25 dry bulk carriers, and now, five newly-acquired container ships.

10 Best Low Price Stocks To Watch Right Now: Financial Institutions Inc.(FISI)

Financial Institutions, Inc. operates as the holding company for Five Star Bank that provides consumer and commercial banking, and financial services to individuals, municipalities, and businesses in central and western New York. Its deposit accounts consist of noninterest-bearing demand, interest-bearing demand, savings, money market, club, individual retirement, and other qualified plan accounts, as well as certificates of deposit. The company?s loan portfolio comprises commercial loans, commercial real estate loans, one-to-four family residential mortgages, consumer automobile loans, recreational vehicle loans, boat loans, home improvement loans, closed-end home equity loans, home equity lines of credit, collateralized and uncollateralized personal loans, deposit account collateralized loans, commercial and agricultural working capital and revolving lines of credit, commercial and agricultural mortgages, equipment loans, and crop and livestock loans. It operates throug h a network of approximately 51 offices and 70 ATMs in 14 contiguous counties of western and central New York. The company, through its other subsidiary, Five Star Investment Services, Inc., provides brokerage services. Financial Institutions, Inc. was founded in 1931 and is based in Warsaw, New York.

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

    Financial Institutions Inc. (FISI) operates as the holding company for Five Star Bank that provides various banking and financial services to individuals, municipalities, and businesses. Aug. 21, the company increased its quarterly dividend 6% to $0.19 per share. The dividend is payable payable Oct. 2, 2013 to shareholders of record as of Sept. 12, 2013. The yield based on the new payout is 3.9%.

  • [By Jon C. Ogg]

    Financial Institutions Inc. (NASDAQ: FISI) was started as Buy with a $24 price target by Sterne Agee.

    Ross Stores Inc. (NASDAQ: ROST) was reiterated as Buy and added to the prized Conviction Buy list at Goldman Sachs.

10 Best Low Price Stocks To Watch Right Now: Cinedigm Digital Cinema Corp(CIDM)

Cinedigm Digital Cinema Corp. provides technology solutions, financial advice and guidance, and software services to content owners and distributors, and movie exhibitors in the United States. The company engages in the ownership and licensing of digital systems to theatrical exhibitors; and provides monitoring, billing, collection, verification, and other management services to the company?s Phase I Deployment and Phase II Deployment, as well as to exhibitors, who purchase their own equipment. It also develops and licenses software to the theatrical distribution and exhibition industries; and provides applications service provider service, and software enhancements and consulting services. In addition, the company distributes movie features, trailers, and other alternative content to movie theaters and other venues with digital cinema equipment through satellite, hard drives, and broadband; and provides non-theatrical satellite based distribution of content into various out of home networks and other channels. Further, it provides content marketing and distribution services to alternative and theatrical content owners, and theatrical exhibitors, as well as offers in-theatre advertising services. The company was formerly known as Access Integrated Technologies, Inc. and changed its name to Cinedigm Digital Cinema Corp. in October 2009. Cinedigm Digital Cinema Corp. was founded in 2000 and is headquartered in Morristown, New Jersey.

10 Best Low Price Stocks To Watch Right Now: Sterling Bancorp(STL)

Sterling Bancorp operates as a bank holding company for Sterling National Bank that provides a range of banking and financial products and services in the Untied States primarily in New York, New Jersey, and Connecticut. It accepts various deposit products, including checking accounts, money market accounts, negotiable order of withdrawal accounts, savings accounts, rent security accounts, retirement accounts, and certificates of deposits; and deposit services comprising account management and information, disbursement, reconciliation, collection and concentration, ACH, and others. The company also provides business and consumer lending, asset-based financing, factoring/accounts receivable management services, equipment leasing, commercial and residential mortgage lending and brokerage, and trade financing services for commercial, industrial and financial companies, and government and non-profit entities. In addition, it offers financing and human resource business process outsourcing support services for the temporary staffing industry, which comprise full back-office, computer, tax, and accounting services, as well as financing to independently-owned staffing companies. The company operates 12 offices, including 9 offices in New York City, two branches in Nassau County, and 1 branch in Yonkers, New York. Sterling Bancorp was founded in 1929 and is based in New York, New York.

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

    The M&T Bank Corp. (NYSE: MTB) and Hudson City Bancorp Inc. (NASDAQ: HCBK) transaction is the only pending deal of 2012 vintage due to various regulatory concerns. MTB currently has 9% short interest outstanding and PACW 15%. Another merger covered is the deal between Provident New York Bancorp (NASDAQ: PBNY) and Sterling Bancorp (NYSE: STL), and the balance are simply too small for us to warrant effort.

  • [By Corinne Gretler]

    Statoil ASA (STL) rose 4.2 percent to 137.60 kroner. Norway�� biggest energy company made its third oil discovery off the coast of Canada in the Flemish Pass basin. Bank of America Corp. raised the stock to buy from neutral.

10 Best Low Price Stocks To Watch Right Now: Edgewater Exploration Ltd(EDW.V)

Edgewater Exploration Ltd., an exploration stage company, together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of mineral resource properties primarily in Ghana and Spain. It is involved in developing the Enchi gold project in south-western Ghana, West Africa; and the Corcoesto gold project in Galicia, northwest Spain. The company also owns a 100% interest in 7 gold and gold-copper projects covering 50,013 hectares in southwest Spain. Edgewater Exploration Ltd. was founded in 2007 and is headquartered in Vancouver, Canada.

10 Best Low Price Stocks To Watch Right Now: CoBiz Financial Inc.(COBZ)

CoBiz Financial Inc., through its subsidiaries, provides various financial products and services. The company?s Commercial Banking segment offers various accounts for depositors, including certificates of deposit, money market accounts, Eurodollar sweep accounts, savings accounts, checking and NOW accounts, and individual retirement accounts; lending products comprising commercial loans, commercial and residential real estate construction loans, commercial and residential real estate mortgage loans, consumer loans, revolving lines of credit, and tax-exempt financing; and real estate banking, private banking, interest-rate hedging, and treasury management services. Its Investment Banking segment provides merger and acquisition advisory services, institutional private placements of debt and equity, and other strategic financial advisory services for middle-market companies. The company?s Wealth Management segment offers wealth planning and investment management, trust and fiduciary, wealth transfer, estate and business succession planning, estate settlement, financial planning, and family office services. Its Insurance segment provides employee benefits consulting, insurance brokerage, and related administrative support to individuals, families, and employers; and commercial and personal property insurance brokerage, and casualty insurance brokerage, as well as risk management consulting services to small and medium-sized businesses and individuals. CoBiz Financial Inc. operates 12 locations, including 9 in the Denver metropolitan area, 1 in Boulder, and 2 in the Vail area in Colorado under the name Colorado Business Bank; and 7 locations serving the Phoenix metropolitan area and the surrounding area of Maricopa County in Arizona under the name Arizona Business Bank. The company was formerly known as CoBiz Inc. and changed its name to CoBiz Financial Inc. in May 2007. CoBiz Financial Inc. was founded in 1980 and is headquartered in Denver, Co lorado.

10 Best Low Price Stocks To Watch Right Now: E-House(China)

E-House (China) Holdings Limited, through its subsidiaries, operates as a real estate services company in China. It provides primary real estate agency services, secondary real estate brokerage services, real estate information and consulting services, real estate advertising services, real estate online services, and real estate investment fund management services. The company offers primary real estate agency services to real estate developers of residential properties. Its secondary real estate brokerage services include offering advisory services on choices of properties; accompanying potential buyers on house viewing trips; drafting purchase contracts; negotiating price and other terms; and providing preliminary proof of title, as well as coordinating with the notary, the bank, and the title transfer agency. The company also provides market information to buyers and sellers based on its research, as well as listing and brokerage services comprising sales and rentals. Its real estate consulting services include land acquisition consulting and land development consulting. The company?s real estate information services comprise the sale of online subscriptions to its proprietary CRIC system to support its primary and secondary real estate agency services. Its real estate advertising services comprise advertising design and sales in print and other media. The company?s real estate online services include real estate news, information, property data, and access to online communities to real estate consumers and participants through local Web sites. Its real estate investment fund management activities consist of investments in China?s real estate sector. E-House (China) Holdings Limited was founded in 2000 and is headquartered in Shanghai, the People?s Republic of China.

Friday, November 29, 2013

Shire up in London; BSkyB, ITV off after BT soccer deal

LONDON (MarketWatch) — The U.K.'s FTSE 100 index moved higher on Monday, with shares of Shire PLC among major advancers after an acquisition, while British Sky Broadcasting Group PLC and ITV PLC declined after rival BT Group won the rights to broadcast Champions League soccer matches.

The benchmark index (UK:UKX)  added 0.3% to close at 6,728.37, building on a 0.2% gain from Friday.

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"The cost of developing innovating technologies has dropped exponentially. What used to take millions of dollars of venture capital can now be done for tens of thousands of dollars very often, and you can solve big problems," says startup guru Vivek Wadhwa.

Shares of Shire (UK:SHP)  climbed 0.9% after the drug maker said it is buying rare-disease company ViroPharma Inc. (VPHM)  for $4.2 billion, or $50 a share. ViroPharma jumped 25% in the U.S.

Read more on the Shire, ViroPharma deal.

Hammerson PLC (UK:HMSO)  gained 0.8% after the property-development and investment firm said it is seeing ongoing signs of recovery in its markets and it is "well-positioned to capitalize" on those opportunities.

The broadcasting sector was also in the spotlight after BT Group PLC (UK:BT.A) bought the rights to broadcast live Champions League and Europa League soccer matches for 897 million pounds ($1.4 billion). Shares of BT Group inched 0.5% higher.

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The rights are currently held by rivals British Sky Broadcasting (UK:BSY) , whose shares skidded 10.9%, and ITV PLC (UK:ITV) , which fell 1.6%. Nomura cut BSkyB to reduce from buy, while Citigroup said ITV is probably the bigger casualty of BT's rights acquisition and lowered the rating to neutral from buy.

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"On BSkyB, while not welcome, we think this is handle-able and would see significant weakness as an opportunity to buy the shares," the Citi analysts said.

Shares of RSA Insurance Group PLC (UK:RSA)  slid 10.5% after the company late Friday issued a profit warning for the full year and said it had suspended the chief executive and chief financial officer of its Irish division, as it investigates issues that were identified during a routine audit.

Credit Suisse cut the insurance firm to underperform from neutral following the announcement of problems with the Irish business.

Sage Group PLC (UK:SGE)  added 1.3% after the software firm appointed Steve Hare as its chief financial officer effective Jan. 3 to replace Paul Harrison, who stepped down in August.

Outside the main index in London, shares of Lonmin PLC (UK:LMI)  added 3.9% after the platinum miner said it swung to profit on the full year as it recovered from the effects of a violent strike last year.

Thursday, November 28, 2013

Mario Gabelli’s Three Real Time Buys

As reported by GuruFocus Real Time Picks, Mario Gabelli reported three of his real time buys occurring over the past couple of weeks. The guru bought into one new company and increased his position in two others.

L.S. Starrett Company (SCX)

Last week Gabelli increased his holdings in L.S. Starrett Company where he upped his stake 31.9%. The guru purchased a total of 81,142 shares at an average price of $11.13 per share. Since then the price per share has increased about 1%.

Gabelli now holds on to 335,500 shares of L.S. Starrett, representing 4.93% of the company's shares outstanding. Gabelli is now the second largest guru shareholder to Chuck Royce.

Gabelli's historical holding history:

[ Enlarge Image ]

L.S. Starrett is engaged in the business of manufacturing over 5,000 different products for industrial, professional and consumer markets. The company's products include precision tools, electronic gages, gage blocks, optical and vision measuring equipment, custom engineered granite solutions, tape measures, levels, chalk products, etc.

L.S. Starrett's historical revenue and net income:

[ Enlarge Image ]

The analysis on L.S. Starrett reports that the company has issued $22.51 million of debt over the past three years, its revenue has been in decline over the past year and its price is at a 1-year high.

The company upped their dividend in June, bringing the company's dividend yield up to 3.50%.

[ Enlarge Image ]

L.S. Starrett has a market cap of $77.7 million. Its shares are currently trading at around $11.25 with a P/S ratio of 0.30 and a P/B ratio of 0.60. The company had an annual average earnings growth of 32.30% over the past five years.

Strattec Security (STRT)

Last week Mario Gabelli incre! ased his position in Strattec Security. The guru increased his position 4.82% by adding a total of 13,136 shares to his holdings. He bought these shares at an average price of $43.15, and since then the price per share has increased approximately 5%.

Gabelli now holds on to 285,647 shares, representing 8.58%of the company's shares outstanding.

Gabelli's historical holding history:

[ Enlarge Image ]

Strattec Security Corporation designs, develops, manufactures and markets mechanical locks, electro-mechanical locks, latches and related security/access control products for major North American and global automotive manufacturers.

Strattec Security's historical revenue and net income:

[ Enlarge Image ]

The analysis on Strattec reports that the revenue has slowed over the past year, their interest coverage is comfortable and their price is nearing a 5-year high. Also over the past three years, Strattec has issued $2.25 million of debt.

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The company recently released its first quarter fiscal 2014 results which reported:

· Net sales of $79.6 million, up from $70.8 million last year.
· Net income was $3.211 million, compared to $2.67 million in the prior year.
· Diluted EPS of $0.91, up from $0.78.
· Gross profit margin was 18.2%, compared to 19.4% last year.

Strattec Security designs locking systems for Chrysler Group, General Motors, Ford Motor, Tier 1, OEM customers and Hyundai/Kia.

Strattec also recently declared a dividend of $0.11 per share. This dividend is payable on Dec. 27 to shareholders of the record as of Dec. 13, 2013. This dividend represents a 10% increase from its previous quarterly distribution.

The Peter Lynch Chart suggests that! the comp! any is slightly overvalued:

[ Enlarge Image ]

Strattec Security Corp has a market cap of $150.3 million. Its shares are currently trading at around $43.50 with a P/E ratio of 15.80 and a P/S ratio of 0.50.

Edgen Group (EDG)

Gabelli made his first buy into Egden last week, buying 339,154 shares. The guru bought these shares at $12 per share. He holds 0.78% of the company's shares outstanding, and his new buy makes him the only guru shareholder with a stake in Edgen Group

Edgen Group Inc is a global distributor of specialty products to energy sector, including steel pipe, valves, quenched & tempered & high yield heavy plate, and related components.

Edgen Group's historical revenue and net income:

[ Enlarge Image ]

The analysis on Edgen reports that the company's revenue has been in decline over the past three years, the price is at a 2-year high of $12 per share and the company's inventory has been consistently building up.

On Oct. 22, several major law firms announced that they would be examining claims regarding breaches of fiduciary duty by the Board of Edgen in connection with their sale of the company to Sumitomo Corporation. The firms believe that there was a potential breach of fiduciary duties in connection to the sale of their company to the Japanese-based company. The cash deal was valued at $520 million, and under the proposed transaction Edgen shareholders will get $12 per share, but many believe that the price should be set at $15 per share.

Edgen Group has a market cap of $519.8 million. Its shares are trading at around $12 with a P/E ratio of 44.20 and a P/S ratio of 0.10.

Check out more of Mario Gabelli's real time picks here.

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Related links:Mario Gabelli's real time pic! ksTry a f! ree 7-day premium membership trial to see the most updated GuruFocus Real Time Picks

Wednesday, November 27, 2013

5 Hated Earnings Stocks You Should Love

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

>>5 Stocks Poised for Breakouts

This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.

>>5 Big Stocks to Trade for Big Gains

If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

Usana Health Sciences

My first earnings short-squeeze play is nutritional and personal care products maker Usana Health Sciences (USNA), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect USANA Health Sciences to report revenue of $172.40 million on earnings of $1.14 per share.

The current short interest as a percentage of the float USANA Health Sciences is extremely high at 29%. That means that out of the 6.67 million shares in the tradable float, 1.95 million shares are sold short by the bears. This is a stock with a huge short interest and a very low tradable float. Any bullish earnings news could easily spark a monster short squeeze for shares of USNA post-earnings.

>>5 Rocket Stocks to Buy Now

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From a technical perspective, USNA is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $78.94 to its intraday high of $88.73 a share. During that uptrend, shares of USNA have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of USNA within range of triggering a big breakout trade post-earnings.

If you're bullish on USNA, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high at $89.72 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 128,383 shares. If that breakout triggers, then USNA will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $105 to $115 a share.

I would simply avoid USNA or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some near-term support at $85 a share to its 50-day moving average at $82.64 a share with high volume. If we get that move, then USNA will set up to re-test or possibly take out its next major support levels at $78.94 to $76 a share, or even $73 a share.

Unisys

Another potential earnings short-squeeze trade idea is worldwide information technology player Unisys (UIS), which is set to release its numbers on Tuesday after the market close. Wall Street analysts, on average, expect Unisys to report revenue $854.13 million on earnings of 40 cents per share.

>>5 Stocks With Big Insider Buying

The current short interest as a percentage of the float for Unisys is pretty high at 15.3%. That means that out of the 43.14 million shares in the tradable float, 6.57 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 8.9%, or by about 539,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of UIS could easily spike sharply higher post-earnings as the bears rush to cover some of their bets.

From a technical perspective, UIS is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways and consolidating for the last two months, with shares moving between $24.11 on the downside and $27.08 on the upside. Shares of UIS are now starting to move within range of triggering a breakout trade above the upper-end of its recent sideways chart pattern post-earnings.

If you're in the bull camp on UIS, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $26.51 to $27.08 a share, and then once it clears its 52-week high at $28.25 a share high volume. Look for volume on that move that hits near or above its three-month average action of 427,802 shares. If that breakout hits, then UIS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $32.50 to $35 a share.

I would simply avoid UIS or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day at $25.39 a share and then below more key near-term support levels at $24.66 to $24.11 a share with high volume. If we get that move, then UIS will set up to re-test or possibly take out its next major support levels at its 200-day moving average of $22.61 to $20 a share.

Cree

One potential earnings short-squeeze candidate is semiconductor player Cree (CREE) which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Cree to report revenue of $392.21 million on earnings of 39 cents per share.

Just recently, Canaccord Genuity upgraded shares of CREE to buy from hold and lifted its price target to $80 from $65 on better bulb costs and ongoing momentum in the industry. The firm said even though there are fierce competitors, CREE is clearly leading the pack worldwide in the solid-state lighting revolution.

>>5 Tech Stocks Spiking on Big Volume

The current short interest as a percentage of the float for Cree stands at 8.9%. That means that out of the 116.73 million shares in the tradable float, 10.49 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 6.2%, or by about 608,000 shares. If the bears get caught pressing their bets into a bullish quarter, then shares of CREE could easily surge sharply higher post-earnings as the bears jump to cover some of their short positions.

From a technical perspective, CREE is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $53.80 a share to its intraday high of $75.98 a share. During that uptrend, shares of CREE have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CREE within range of triggering a big breakout trade post-earnings.

If you're bullish on CREE, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance level at $75.98 to its 52-week high at $76 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.57 million shares. If that breakout hits, then CREE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $85 to $90 a share, or even $95 a share.

I would avoid CREE or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some near-term support levels at $72 to $70 a share with high volume. If we get that move, then CREE will set up to re-test or possibly take out its next major support levels at $67.23 to its 50-day moving average of $62.71 a share.

Cabela's

Another earnings short-squeeze prospect is Cabela's (CAB), a specialty retailer of hunting, fishing, camping and outdoor merchandise, which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Cabela's to report revenue of $854.07 million on earnings of 71 cents per share.

>>5 Stocks Under $10 Set to Soar

The current short interest as a percentage of the float for Cabela's is very high at 15.6%. That means that out of the 50.70 million shares in the tradable float, 7.70 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 12.3%, or by about 845,000 shares. If the bears get caught pressing their bets into a bullish quarter, then shares of CAB could easily experience a big short-squeeze post-earnings as the bears rush to cover some of their bets.

From a technical perspective, CAB is currently trending above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock has been downtrending badly for the last two months and change, with shares moving lower from its high of $71.80 to its recent low of $60.43 a share. During that move, shares of CAB have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of CAB have now started to rebound off that $60.43 low, and it's quickly moving within range of triggering a near-term breakout trade post-earnings.

If you're bullish on CAB, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $65.16 to $67 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 674,169 shares. If that breakout hits, then CAB will set up to re-test or possibly take out its next major overhead resistance levels at $72 to its 52-week high at $72.54 a share. Any high-volume move above those levels will then give CAB a chance to tag $75 a share.

I would simply avoid CAB or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support levels at $63 to its 200-day moving average at $61.73 a share with high volume. If we get that move, then CAB will set up to re-test or possibly take out its next major support levels at $60.43 to $58 a share.

Mellanox Technologies

My final earnings short-squeeze play is fables semiconductor player Mellanox Technologies (MLNX), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Mellanox Technologies to report revenue of $107.63 million on earnings of 32 cents per share.

The current short interest as a percentage of the float for Mellanox Technologies is pretty high at 12.2%. That means that out of the 37.47 million shares in the tradable float, 3.95 million shares are sold short by the bears. This is a decent short interest on a stock with a relatively low tradable float. Any bullish earnings news could easily set off a solid short-squeeze for shares of MLNX post-earnings.

From a technical perspective, MLNX is currently trending just above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has been downtrending badly for the last three months and change, with shares moving lower from its high of $54.89 to its recent low of $33.69 a share. During that move, shares of MLNX have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of MLNX have recently started to trend back above its 50-day at $38.72 and well off its recent low of $33.69 a share. That move has pushed shares of MLNX within range of triggering a near-term breakout trade post-earnings.

If you're in the bull camp on MLNX, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance at $42.45 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 798,645 shares. If that breakout hits, then MLNX will set up to re-test or possibly take out its next major overhead resistance levels at $47 to its 200-day at $48.80 a share.

I would avoid MLNX or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 50-day at $38.72 a share and then below more near-term support at $37.57 a share with high volume. If we get that move, then MLNX will set up to re-test or possibly take out its next major support level at $33.69 to $30 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>The Pros Hate These 5 Stocks -- Should You?



>>5 Stocks Poised to Pop on Bullish Earnings



>>Do You Own These Blue-Chips? Sell Them!

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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


Monday, November 25, 2013

Why You Should Do Your Holiday Shopping Online

LIFESTYLE-US-IT-INTERNET-RETAIL-HOLIDAYKaren Bleier, AFP/Getty Images When it comes to holiday shopping, more and more consumers are heading to their computers rather than the mall. Nearly 52 percent of those surveyed by the National Retail Federation plan to shop online this year, up from 44 percent in 2012. That's a smart move according to the deal experts we consulted, because shopping online can save time and money. The savings hold true even on Black Friday, the day after Thanksgiving when stores have big sales. Most retailers will be offering the same discounts on their websites as in their stores this holiday season, says Rob Gough, president of CouponChad.com and DefinitiveDeals.com. Plus, when you shop online, you have access to several tools that make it easy to compare prices and find the best deals -- without spending money on gas to drive all over town and giving up time with family over the holiday weekend to battle the crowds. Price-comparison sites and tools. It's easy to find out which retailers have the best prices on items on your holiday gift list if you use price-comparison sites such as Amazon.com (AMZN), PriceGrabber.com or Google Shopping (GOOG). When you search for an item on these sites, they produce lists of the retailers offering the product, prices, shipping costs, and seller information and ratings. Or you could download a browser add-on, such as PriceBlink, which can help you find the lowest price when you shop online. When you are viewing a product online, it scans more than 4,000 merchants' sites to determine if any offer that product at a lower price. A toolbar will pop up at the top of your browser alerting you to savings. Karl Quist, president of PriceBlink, says that if you see a merchant offering a product for up to 20 percent less than other retailers, recognize that it's a special deal that you should snap up because it won't last. Coupon codes. When you're comparing prices at several online retailers, be sure to check whether any are offering coupons that will lower their prices even more. Sites such as CouponCabin.com, CouponChad.com, DefinitiveDeals.com and RetailMeNot.com offer coupon codes, many of which you won't find advertised on retailers' sites. The PriceBlink browser add-on also displays coupons being offered by retailers whose sites you visit. Gough of CouponChad.com cautions shoppers to be smart about using coupons. Retailers know that consumers often opt for coupons that offer a particular dollar amount off rather than a percentage off a purchase -- even when the latter option offers better savings, he says. If both types of coupons are available for a product, calculate the savings you'll get with each to determine which coupon code to use. Deal sites. Another reason finding deals online can be easier than in a store is the plethora of deal sites that do the bargain hunting for you, such as Ben's Bargains, dealnews.com and Offers.com. The number of deals on these sites can be overwhelming, says Joe Warner, managing editor of Ben's Bargains. So he recommends that you have a shopping list so you buy only items you need. You can register at Ben's Bargains to receive email alerts for deals based on keywords so that you'll know when items you're looking for go on sale. Online gift cards. While you're shopping online, it's easy to check sites such as Gift Card Granny to see if it has any discounted online gift cards you can use to save money on your purchases. Gift Card Granny sells merchants' gift cards for less than face value. So if you buy a $100 Macy's gift card for $90 and use it to make a purchase on Macys.com (M), you'll get an instant $10 savings. Free shipping. With the majority of retailers offering free shipping this holiday season, you shouldn't make a purchase online if it doesn't include free shipping, says Offers.com Vice President Howard Schaffer. You can search for free shipping codes at FreeShipping.org. If a retailer requires a minimum purchase amount to receive free shipping and you're not quite at that limit, Schaffer recommends checking your holiday gift list to see if there's another item you can add to your basket -- or perhaps a gift you need to purchase for an upcoming birthday, anniversary or other occasion. You also can wait until Free Shipping Day on Dec. 18, when more than 400 merchants will be offering free shipping on all purchases with guaranteed delivery by Christmas Eve.

The Deal: Wet Seal Sale Awaits as Turnaround Continues

NEW YORK (The Deal) -- Wet Seal (WTSL), the teen apparel retailer, will continue its turnaround efforts for the next six months and then eye a sale of the company, said a source familiar with the situation. 

Those recent turnaround efforts include increasing square footage through new store openings, particularly in outlet stores, and launching a plus-size apparel offering. 

Though some of those efforts have paid off, success is not guaranteed. After reporting that consolidated comparable stores sales increased 3.7% for the fiscal second quarter ended Aug. 3, with net income at $1 million compared to a loss of $12 million year-over-year, Wet Seal also on Oct 15 lowered its third-quarter guidance, saying it expected a net loss of between 10 cents and 12 cents per share, as compared to previously announced 2 cents and 3 cents per share. 

But that should be taken against a backdrop of a year when most youth clothing retailers came off of poorer than expected back-to-school results.  Wet Seal did not immediately respond to a request for comment.  Activist hedge fund Clinton Group Inc. holds the keys to a possible sale of the company with four board seats that it snagged last year after the company settled a bitterly contested consent solicitation.  With the hedge fund firmly ensconced on the board, the company chose its new chief executive John Goodman, who led The Gap's (GPS) outlet business at one point in his 20-plus-year apparel retail career. He was brought on board in January to resuscitate the purveyor of teen clothing, replacing Susan McGalla, who was sacked the previous July because of falling sales.  And Goodman may be, once again, trying to dress up a retailer for sale.  The chief executive oversaw the recent sale process of Charlotte Russe Holding Inc. as its CEO. The retailer announced a strategic review at the beginning of 2009, shortly after Goodman joined to run it in November of 2008, ending with a buyout deal with private equity firm Advent International Corp. for $380 million in Aug. 2009.  Wet Seal's uneven financial performance in recent years is due not only to the vicissitudes of an industry susceptible to consumer spending trends, but also because of the highly competitive nature of the teen apparel sector, which has heated up with fast fashion entrants such as Forever 21 Inc., H&M and Zara.  Wet Seal had revenues of $580 million and negative EBITDA of nearly $26 million for its fiscal year ended Feb. 2, 2013, compared to the previous year's results of $620 million in revenues and EBITDA of nearly $49 million. For next year, analysts estimate that revenues will be about $574 million and nearly $13 million in EBITDA, according to Bloomberg. 

Despite the company's struggles, another person familiar with the situation said its turnaround is working as it opens new stores, including outlets, has a strong management team in place and a healthy balance sheet. 

And as of Aug. 3, the company said it had nearly $80 million in cash, cash equivalents and short-term investments and no debt. 

At one point, Clinton Group had advocated for a sale of the company. 

"From a strategic-buyer perspective, the company has a fantastic footprint - it's in the best malls and has the best locations inside the malls," Greg Taxin, Clinton Group's managing director, told The Deal last August.  Taxin said at the time that the company could be a bargain for a PE buyer. "We also believe there is and will continue to be private equity interest - the business used to do $60 million of EBITDA, but it's underperformed lately."  And, in July 2012, Clinton Group senior portfolio manager Joseph De Perio suggested in a report that Wet Seal could fetch $5 to $8 per share.  Sources told The Deal last fall that investment bank Peter J. Solomon Co. LP was fielding offers for the company.  By the fall of 2012 the hedge fund was more interested in stabilizing the company, hiring an executive who could return the teen fixation to a position of strength.  KarpReilly Capital Partners LP, which not only was a bidder for Charlotte Russe, but hired former Wet Seal CEO Ed Thomas, who is a partner at the firm, has looked at the company in the past, sources said.  Another potential bidder could include Advent - especially given the Goodman relationship. Other private equity firms that are known for investing in troubled retailers include Sun Capital Partners Inc., Golden Gate Capital and Sycamore Partners.

Wet Seal's 60-day moving average share price was $3.60 as of Thursday; its market capitalization was about $304.4 million.

Written by By Richard Collings.

Thursday, November 21, 2013

Checkpoint Systems (CKP): Is This Anti-Shoplifting Small Cap a Good Retail Bet? XRT & PMR

Small cap Checkpoint Systems, Inc (NYSE: CKP) fights shoplifting or retail theft and other forms of "shrink" that costs retailers over $112 billion worldwide last year (according to a study funded by the company), meaning it might be an interesting stock to take a closer look at and to compare its performance with that of SPDR S&P Retail ETF (NYSEARCA: XRT) and PowerShares Dynamic Retail ETF (NYSEARCA: PMR). Just how bad can shoplifting or shrink be for a retailer? Troubled retailer J.C. Penney Company, Inc (NYSE: JCP) has just reported that shoplifting took a full percentage point off the department store chain's profit margins during the quarter. Moreover and given that tens of millions of Americans are now facing higher health insurance costs thanks to Obamacare (which will likely impact consumer discretionary spending), retailers will need to find ways to shore up their margins and bottom lines by preventing retail theft with solutions from company's like Checkpoint Systems.

What is Checkpoint Systems, Inc?

Small cap Checkpoint Systems calls itself a global leader in merchandise availability solutions for the retail industry as it provides end-to-end solutions enabling retailers to achieve accurate real-time inventory, accelerate the replenishment cycle, prevent out-of-stocks and reduce theft, thus improving merchandise availability and the shopper's experience. Checkpoint Systems operates in every major geographic market and employs 4,700 people worldwide.

For performance benchmarking purposes, the SPDR S&P Retail ETF tracks the performance of the S&P Retail Select Industry Index with 99 holdings while the PowerShares Dynamic Retail ETF tracks the performance of the Dynamic Retail Intellidex Index with a more concentrated holding of 30 retail stocks. Its also more lightly traded with a trading volume of around 2,300 shares a day.

What You Need to Know and Be Warned About Checkpoint Systems, Inc

Earlier this month, shares of Checkpoint Systems plunged from the $17 level to the $13 level after reporting earnings that missed expectations. Specifically, Checkpoint Systems reported a 3.3% revenue increase to $174.5 million, gross profit margins of 40.3% verses 40.7% for the same period last year, operating income of $13.7 million verses $3.3 million and vet earnings from continuing operations of $0.18 per diluted share verses a net loss of $0.10 per diluted share. That may sound alright but in the earnings release, the CEO gave a more gloomy guidance:

"The fourth quarter will prove to be a much more difficult operating environment than previously expected due to Federal Government-related projects being delayed, U.S. retailers lowering same-store-sales expectations and lack of improvement in the European economy. As a result, we are reducing our full year guidance to reflect lower revenues, primarily in RFID asset tracking and RMS. We also now expect lower gross profit margins due to an unfavorable mix toward lower-margin hardware installations, delays in realizing all of the anticipated ALS cost savings and further pressure on the European RMS business."

In the earnings call (the transcript is available on Seeking Alpha here), the CEO also outlined a serious of internal missteps beyond lower same-store sales expectations, the sequester and Europe:

"Fourth, 4 incorrect management assumptions, 3 of which I'll characterize as impacting gross profit margins. Now the first one is that, clearly, we were overoptimistic on the timing to realize all of the Project LEAN cost of goods sold savings in the ALS business. Second, we underestimated the proportion of lower-margin new systems installations derived from recent market share gains, which will negatively impact EAS systems gross profit. Third, we incurred unexpected startup costs as we grow the RFID business, and these costs will negatively impact Merchandise Visibility gross profit. And fourth, we underestimated the continuation of foreign exchange translation and transaction losses."

In response, the CEO said they are implementing a series of actions that, over the next year, are intended to improve their forecast accuracy and to get back any predicted operating income shortfall to stay on track to meet 2015 goals with the majority of these actions being centered around process improvement and additional cost reductions.

In other words, Checkpoint Systems should, in theory, be doing great given the results of the 2012-2013 Global Retail Theft Barometer which they helped to fynd but it looks like management may have temporarily fumbled things in the wake of other economic headwinds. Otherwise, it should also be mentioned that according to Yahoo! Finance, Checkpoint Systems has a forward P/E of 16.56 – meaning its neither grossly over or undervalued for new investors.

Share Performance: Checkpoint Systems, Inc

On Wednesday, small cap Checkpoint Systems fell 1.88% to $14.08 (CKP has a 52 week trading range of $8.21 to $18.25 a share) for a market cap $583.41 million plus the stock is up 31.1% since the start of the year and up 26.8% over the past five years. Here is a look at the performance of Checkpoint Systems verses that of retail ETF benchmarks SPDR S&P Retail ETF and PowerShares Dynamic Retail ETF:

As you can see from the above chart, investors would have been better off since 2011 had they invested in one of the retail ETFs rather than Checkpoint Systems.

Finally, here is a look at the latest technical charts for all three investments:

The Bottom Line. Given the global problem with shoplifting, retail theft and other forms of "shrink" faced by retailers, investors might want to at least keep an eye on small cap Checkpoint Systems as it works on correcting "incorrect management assumptions" to get back on track. 

Wednesday, November 20, 2013

7 Semiconductor Stocks to Sell Now

RSS Logo Portfolio Grader Popular Posts: 7 Biotechnology Stocks to Buy Now17 Oil and Gas Stocks to Sell Now3 Oil and Gas Stocks to Buy Now Recent Posts: 8 Biotechnology Stocks to Sell Now 7 Semiconductor Stocks to Sell Now 10 Best “Strong Buy” Stocks — LNKD TYL PCYC and more View All Posts

This week, the ratings of seven semiconductor stocks on Portfolio Grader are down. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).

Kulicke & Soffa Industries, Inc. () is on the decline this week, earning a D (“sell”) after receiving a C (“hold”) last week. Kulicke & Soffa designs, manufactures, and markets capital equipment, related spare parts, and packaging materials used to assemble semiconductor devices. For Portfolio Grader’s specific subcategory of Earnings Revisions, KLIC also gets an F. .

This week, NeoPhotonics Corporation’s () rating worsens to a D from the company’s C rating a week ago. NeoPhotonics designs, manufacturers, and markets standard and semi custom planar light wave circuits for metro access and other advanced optical communications platforms. The stock gets F’s in Earnings Revisions, Equity, Cash Flow, and Margin Growth. The stock price has fallen 30.6% over the past month, worse than the 1.7% decrease the S&P 500 has seen over the same period of time. Shares of the stock have been exchanging at an usually rapid pace, twice the rate of the week prior. .

The rating of ASM International NV NY Registered Shs () slips from a C to a D. ASM is a semiconductor capital equipment supplier engaged in the design, manufacture, and sale of production systems and services for the production of semiconductor devices or integrated circuits. The stock receives F’s in Earnings Growth, Earnings Momentum, and Earnings Revisions. Earnings Surprise and Margin Growth also get F’s. The stock price stands at $32.89, on the rise for the past 16 days. .

This is a rough week for Skyworks Solutions, Inc. (). The company’s rating falls to D from the previous week’s C. Skyworks Solutions is an innovator of analog and mixed-signal semiconductors. .

RF Micro Devices, Inc. () experiences a ratings drop this week, going from last week’s C to a D. RF Micro Devices designs, develops, and markets proprietary radio frequency integrated circuits. The stock gets F’s in Equity and Margin Growth. For the past three days, the stock price has pushed higher, arriving at $4.92. .

Silicon Laboratorie () earns a D this week, moving down from last week’s grade of C. Silicon Laboratories designs and develops proprietary, analog-intensive and mixed-signal integrated circuits that can be used in a range of applications. The stock also rates an F in Earnings Momentum. The stock price has been on the rise for the past six days, reaching $37.85. Shares of the stock are changing hands at twice the rate they were a week ago. The stock has a trailing PE Ratio of 29.10. .

The rating of MaxLinear, Inc. Class A () declines this week from a C to a D. MaxLinear provides integrated, radio-frequency analog and mixed-signal semiconductor solutions for broadband communications applications. The stock also gets an F in Equity. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Tuesday, November 19, 2013

Top 10 Penny Stocks To Watch Right Now

This company's announcement earlier this week was leaps and bounds above all the Wall Street expectations, writes MoneyShow's Jim Jubak, also of Jubak's Picks.

The stock market liked what it heard Wednesday, August 7, from Thompson Creek Metals (TC) after the close in New York. Second quarter adjusted net earnings of 8 cents a share crushed the Wall Street consensus of a penny a share. Revenue climbed 3.8% to $117.8 million versus expectations for revenue of just $1.3.8 million. The company also said that its new Mt. Milligan mine is on schedule with a start-up for the concentrator expected this month, with first ore-feed by mid-August. The company said it expects commercial production to begin in the fourth quarter of 2013, with production ramping to full capacity over the next twelve months.

All this is certainly good news for a miner that looked like it might run out of cash before it got the Mt. Milligan mine into production. The shares were up 13.6% yesterday on the news, as of 3:00 pm New York time. Thompson Creek Metals is a member of my long-term Jubak Picks 50 portfolio.

Top 10 Penny Stocks To Watch Right Now: Skystar Bio-Pharmaceutical Company(SKBI)

Skystar Bio-Pharmaceutical Company engages in the research, development, production, marketing, and sale of veterinary healthcare and medical care products in the People?s Republic of China. Its products include veterinary medicine for poultry and livestock; micro-organism products; bio-pharmaceutical veterinary vaccines; and feed additives. The company offers its products through distributors and directly to customers. Skystar Bio-Pharmaceutical Company is headquartered in Xi?an, the People?s Republic of China.

Top 10 Penny Stocks To Watch Right Now: Casual Male Retail Group Inc.(CMRG)

Casual Male Retail Group, Inc., together with its subsidiaries, operates as a specialty retailer of men?s apparel in the United States, Canada, and Europe. It operates its stores under the Casual Male XL, Casual Male XL Outlets, Destination XL, Rochester Clothing, B & T Factory Direct, Shoes XL, and Living XL trade names. The company?s retail stores offer a range of basic sportswear, casual apparel, and dress wear and accessories, as well as a line of its private label collections, such as Harbor Bay, 626 Blue-Vintage Surplus, Synrgy, Oak Hill, and True Nation; casual clothing for the big and tall customers; loungewear, dress shirts, suits, and jeans wear; and luxury-oriented menswear. As of July 25, 2011, it operated 454 Casual Male XL retail and outlet stores, 15 Rochester Clothing stores, and 5 Destination XL stores. The company also operates a direct business, Shoes XL, which includes the shoesXL.com selling men?s footwear; livingxl.com and Living XL catalogs, speciali zing in selling select lifestyle products, such as chairs, outdoor accessories, and travel accessories, as well as bed and bath, and fitness equipment; and online stores for Casual Male XL and Rochester Clothing brands in the European countries, including the U.K., Germany, France, Italy, Spain, Finland, Sweden, Denmark, and the Netherlands. In addition, it offers a selection of apparel, from branded manufacturers, such as Polo Ralph Lauren, Robert Graham, Calvin Klein, Michael Kors, Ermenegildo Zegna, Cutter and Buck, Tommy Bahama, and Paul & Shark. The company was formerly known as Designs, Inc. and changed its name to Casual Male Retail Group, Inc. in August 2002 as a result of the acquisition of Casual Male business from Casual Male Corp. Casual Male Retail Group, Inc. was founded in 1976 and is headquartered in Canton, Massachusetts.

Top 10 Value Companies To Own For 2014: Chimera Investment Corporation (CIM)

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in residential mortgage-backed securities (RMBS), residential mortgage loans, commercial mortgage loans, real estate-related securities, and other asset classes. Its targeted asset classes include agency or non-agency RMBS; prime, jumbo prime, and Alt-A mortgage loans; first or second lien loans secured by multifamily properties, mixed residential or other commercial properties, retail properties, office properties, or industrial properties; and asset-based securities (ABS), including commercial mortgage-backed securities, debt and equity tranches of collateralized debt obligations, and consumer and non-consumer ABS. The company has elected to be treated as a REIT for federal income tax purposes and would not be subject to income tax, if it distributes at least 90% of its REIT taxable income to its share holders. Chimera Inve stment Corporation was founded in 2007 and is based in New York, New York.

Advisors' Opinion:
  • [By Dan Caplinger]

    Berkshire isn't the only company where book value plays an important role. In the mortgage REIT realm, the value of the investment portfolio for a given mortgage REIT reduced by the REIT's outstanding debt, sometimes referred to as net asset value rather than book value, gives valuable information about its relative valuation. Industry leader Annaly Capital (NYSE: NLY  ) currently sports a price-to-book ratio of 0.96 based on its most recently provided figures, reflecting in part investor skepticism about whether the REIT's agency-issued mortgage-backed securities will hold their value once the Federal Reserve stops making extensive bond purchases as part of its quantitative easing program. By contrast, Annaly's non-agency-issued counterpart, Chimera Investment (NYSE: CIM  ) , sports a price-to-book ratio of nearly 1.1, indicating a significant premium to the REIT's stated net asset value that could be due to the fact that the Fed hasn't focused its efforts on the alternative securities that Chimera tends to choose for its portfolio.

  • [By John Maxfield]

    "Nepotism has never been unknown in American banking," Martin Mayer wrote in The Greatest-Ever Bank Robbery, his 1990 book about the savings-and-loan crisis. While Mayer was referring to American Continental, the notoriously corrupt holding company run into the ground by the infamous Charles Keating in the 1980s, his point rings true today in the case of Annaly Capital Management (NYSE: NLY  ) and its publicly traded portfolio company Chimera Investment (NYSE: CIM  ) .

  • [By Selena Maranjian]

    Appaloosa Management reduced its stake in companies such as Chimera Investment (NYSE: CIM  ) and Valero Energy (NYSE: VLO  ) . Mortgage REIT Chimera Investment recently yielded 10.9%, but it may become less attractive if Congress cancels favorable tax treatment for REITs. Chimera has taken on more risk than many of its brethren, and has had some trouble filing reports on time. Some still like its prospects, though, while others question its hefty management fees.

  • [By Dan Caplinger]

    Because of the requirement to pay out the vast majority of their income, REITs often have extremely high dividend payouts. Mortgage REITs ARMOUR Residential (NYSE: ARR  ) and Chimera Investment (NYSE: CIM  ) use leveraged strategies to produce yields well in excess of 10%, while Omega Healthcare (NYSE: OHI  ) and Senior Housing Properties Trust (NYSE: SNH  ) , which specialize in long-term care facilities and other properties catering to older residents, both have yields between 5% and 6%.

Top 10 Penny Stocks To Watch Right Now: (LTUM)

Lithium Corporation, an exploration stage company, engages in the identification, acquisition, and exploration of metals and minerals with a focus on lithium mineralization in Nevada. It holds interests in Fish Lake Valley property that covers approximately 7,360 acres located in west central Nevada in northern Esmeralda County; Salt Wells property, which covers approximately 8,500 acres in Churchill County; and Cortez property that consists of approximately 4,960 acres located in Lander County, Nevada. The company was formerly known as Utalk Communications Inc. and changed its name to Lithium Corporation in September 2009. Lithium Corporation was founded in 2007 and is based in Reno, Nevada.

Advisors' Opinion:
  • [By CRWE]

    Today, LTUM has shed (-19.80%) down -0.0079 at $.0320 with 33,100 shares in play thus far (ref. google finance Delayed: 11:18AM EDT June 26, 2013), but don�� let this get you down.

    Location Based Technologies, Inc. previously reported it received FCC and IC certification for its versatile LBT-886 device. These certifications are necessary before devices can be sold to consumers throughout the US and Canada.

    Lithium Corporation previously reported it has recently acquired a new Graphite (BC Sugar) prospect in the Shuswap area of British Columbia, in an under-explored area. In addition to the acquired claim, Lithco has also staked another four claims, to bring the total area to be explored by the Company to 3,405.77 acres (1,378.27 hectares). Although graphite has been identified locally in marbles, it has become apparent that graphite is also hosted here in quartz, biotite/mica gneisses, and also in calc-silicate gneisses. The host rocks at BC Sugar are similar to the host rocks in the area of the Crystal Graphite deposit 55 miles (90 kms) to the Southeast, where Lithium Corporation holds the Mt Heimdal block of claims.

Top 10 Penny Stocks To Watch Right Now: National Technical Systems Inc.(NTSC)

National Technical Systems, Inc., a diversified technical services company, provides engineering and compliance testing services to the defense, aerospace, telecommunications, automotive, energy, consumer products, and industrial products markets worldwide. The company offers product life-cycle product integrity support services, including design engineering, compliance, testing, certification, quality registration, and program management. It provides conformity assessment and management system registration services, as well as technology services for product certification, product safety testing, and product evaluation. The company also offers management registration and certification services. The company was founded in 1961 and is based in Calabasas, California.

Top 10 Penny Stocks To Watch Right Now: Stewart Enterprises Inc.(STEI)

Stewart Enterprises, Inc., through its subsidiaries, provides funeral and cemetery products and services in the death care industry in the United States and Puerto Rico. The company also offers a range of funeral merchandise and services, as well as cemetery property, cremation, merchandise, and services. Its funeral homes provide various services and products, including the family consultation, removal and preparation of remains, usage of funeral home facilities for visitation, worship and funeral services, transportation services, flowers, and caskets. The company also sells cemetery property and related merchandise, which includes lots, lawn crypts, family and community mausoleums, monuments, markers, and burial vaults; and provides burial site openings and closings and inscriptions. In addition, it maintains cemetery grounds under cemetery perpetual care contracts and local laws. As of January 31, 2011, the company owned and operated 218 funeral homes and 141 cemeterie s. Stewart Enterprises, Inc. was founded in 1910 and is based in Jefferson, Louisiana.

Advisors' Opinion:
  • [By Chris Katje]

    Service Corporation (SCI), the largest funeral home operator in the United States, made news last week with its large acquisition of Stewart Enterprises (STEI). The acquisition was well received by investors, as shares rose 8% on the day of the announcement. Together, the two companies will see huge cost savings advantages and a backlog that is currently undervalued.

  • [By Brian Pacampara]

    What: Shares of funeral-home operator Stewart Enterprises (NASDAQ: STEI  ) soared 34% today, after larger rival Service Corp. International (NYSE: SCI  ) agreed to acquire it in a deal worth about $1.4 billion.

Top 10 Penny Stocks To Watch Right Now: Orion Marine Group Inc(ORN)

Orion Marine Group, Inc. operates as a marine specialty contractor serving the heavy civil marine infrastructure market. The company provides a range of marine construction and specialty services on, over, and under the water along the Gulf Coast, the Atlantic Seaboard, the West Coast, Canada, the Caribbean Basin, and the Pacific Northwest. The company?s marine construction services include construction of marine transportation facilities, marine pipelines, bridges and causeways, and marine environmental structures. Its marine transportation facility construction projects comprise public port facilities for container ship loading and unloading; cruise ship port facilities; private terminals; recreational use marinas and docks; and other marine-based facilities. Orion Marine Group?s marine pipeline service projects consist of the installation and removal of underwater buried pipeline transmission lines; installation of pipeline intakes and outfalls for industrial facilities ; construction of pipeline outfalls for wastewater and industrial discharges; river crossing and directional drilling; and creation of hot taps and tie-ins. Its bridge and causeway projects include the construction, repair, and maintenance of bridges and causeways, as well as the development of fendering systems in marine environments; and marine environmental structure projects primarily comprise the installation of concrete mattresses to ensure erosion protection, and the installation of geotubes for wetlands and island creation. In addition, the company offers dredging services; specialty services, including salvage, demolition, surveying, towing, diving and underwater inspection, excavation, and repair; and survey services comprising surveying pipelines and performing hydrographic surveys. Its customers include federal, state, and municipal governments, as well as private commercial and industrial enterprises. The company was founded in 1994 and is headquartered in Houst on, Texas.

Advisors' Opinion:
  • [By Seth Jayson]

    When judging a company's prospects, how quickly it turns cash outflows into cash inflows can be just as important as how much profit it's booking in the accounting fantasy world we call "earnings." This is one of the first metrics I check when I'm hunting for the market's best stocks. Today, we'll see how it applies to Orion Marine Group (NYSE: ORN  ) .

Top 10 Penny Stocks To Watch Right Now: Gentiva Health Services Inc.(GTIV)

Gentiva Health Services, Inc. provides home health services and hospice care in the United States. The company offers skilled nursing and therapy services, paraprofessional nursing services, and homemaker services primarily to adult and elderly patients through licensed and Medicare-certified agencies. It also provides its services through specialty programs comprising Gentiva Orthopedics, which offers individualized home orthopedic rehabilitation services to patients recovering from joint replacement or other major orthopedic surgery; Gentiva Safe Strides that provides therapies for patients with balance issues; and Gentiva Cardiopulmonary, which helps patients and their physicians manage heart and lung health in a home-based environment. In addition, the company offers services through Gentiva Neurorehabilitation, which helps patients who have experienced a neurological injury or condition by removing the obstacles to healing in the patient?s home; Gentiva Senior Health that addresses the needs of patients with age-related diseases and issues; and Rehab Without Walls unit, which provides neurorehabilitation therapies for patients with traumatic brain injury, cerebrovascular accident injury, and acquired brain injury. Further, it offers consulting services to home health agencies, which include operational support, billing and collection activities, and on-site agency support and consulting. Additionally, the company provides hospice services primarily in the patient?s home or other residence, such as an assisted living residence or nursing home, as well as in a hospital. Gentiva Health Services, Inc. was founded in 1999 and is headquartered in Atlanta, Georgia.

Advisors' Opinion:
  • [By Keith Speights]

    Medicare mayhem
    Unwelcome news from Medicare last week sent home health provider stocks reeling at the end of last week. The aftermath continued into the first week of July, particularly for Gentiva Health Services (NASDAQ: GTIV  ) . Gentiva's shares dropped almost 11% this week after falling by roughly the same amount last Friday.

  • [By James E. Brumley]

    Truth be told, it's not clear if SK3 Group Inc. (OTCMKTS:SKTO) is best described when compared to a name like Cerner Corporation (NASDAQ:CERN), or to a Gentiva Health Services, Inc. (NASDAQ:GTIV). The company's got elements of both major industries being represented by CERN and GTIV (home health care, and information technology), with the addition of another budding industry thrown into the mix. One thing IS clear though... SKTO shares have decidedly reversed a nasty downtrend, and may now be one of the market's best small cap healthcare speculative trades.

  • [By Sean Williams]

    What: Shares of home health providers Amedisys (NASDAQ: AMED  ) , Gentiva Health Services (NASDAQ: GTIV  ) , and�LHC Group (NASDAQ: LHCG  ) �swooned as much as 28%, 20%, and 15%, respectively, following a public proposal by the Centers for Medicare and Medicaid Services, or CMS, late yesterday that in-home health care reimbursements be cut by 1.5% in 2014.

Top 10 Penny Stocks To Watch Right Now: (NRTLQ)

Nortel Networks Corporation does not have significant operations. Previously, it engaged in supplying end-to-end networking products and solutions, including hardware, software, and services to service providers and enterprise customers. The company was founded in 1914 and is based in Mississauga, Canada. On January 14, 2009, Nortel Networks Corporation filed for creditor protection under the Companies' Creditors Arrangement Act in Canada.

Top 10 Penny Stocks To Watch Right Now: WSI Industries Inc.(WSCI)

WSI Industries, Inc. engages in precision contract metal machining business in the United States. The company offers metal components in medium to high volumes requiring tolerances in accordance with customer specifications. It primarily serves aerospace/avionics/defense, recreational vehicles, energy, and bioscience industries. The company was founded in 1950 and is headquartered in Monticello, Minnesota.

Monday, November 18, 2013

Forbes Article Misrepresents BDC Fees, Performance: Franklin Square

The title of a recent Forbes article tells you all you need to know about how it feels about nontraded business development companies — “The  Overly Expensive, Tricky To Sell Investment Product Everyone Seems To Be Buying.”

Yet it raises the question, if they’re expensive and “tricky” to sell, yet still popular, are investors dimwitted or are purveyors of the product dishonest?

Neither, said Michael Forman, CEO of Philadelphia's Franklin Square Capital Partners, the subject of the Forbes article. He believes the venerable publication made a simple mistake — an apples-to-oranges comparison.

“The focus of the article focused on two things: performance and fees,” Forman explained to ThinkAdvisor in a rebuttal of the article. “I appreciate that this would be the focus and it should, but it’s far more nuanced that the manner in which it was presented.”

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Zachary Klehr, the firm’s executive vice president, addressed the Forbes description of its returns as “subpar,” noting what he feels is the misleading comparison with publicly traded BDCs. He added that the Franklin Square product has the second best return in its competitive set, with between 16% and 17% annualized returns since inception.

“The article focused on year-to-date returns,” Klehr argued. “The only way we can really compare nontraded with publicly traded BDCs is through the [net asset value] performance.  For nontraded BDCs, that means the change in the share price plus all distributions made to investors.”

The FS Investment Corp. Fund’s total return was 33.33% in 2009, 13.08% in 2010, 8.93% in 2011, 15.83% in 2012 and 7.52% so far in 2013. Total return since its Jan. 1, 2009 is 16.26%.

By comparison, the S&P 500 returned 26.46% in 2009, 15.06% in 2010, 2.11% in 2011, 16% in 2012 and 28.46% so far in 2013.

“We are very upfront with our investors and tell them what to expect,” Klehr continued. “This is a noncorrelated alternative investment meant to complimen the portfolio. Publically traded BDCs, on the other hand, are very correlated.”

As to the fees associated with the product, “it could either be a 10% upfront load or it could be nothing. If you invest through an RIA or a wrap account it might cost you a smaller amount each year, but that 10% figure cannot be taken in a vacuum.”

Noting the product is typically held for between five and seven years, Klehr figured a typical 1.5% fee charged by an advisor will end up costing more than the front-end load over the life of the investment.

“There is a premium in the market for publicly traded BDCs,” he concluded. “Our competitors are trading currently at about a 14% premium. We offer strong, stable returns at that 10% level, so you can see we are extremely competitive for the appropriate investor.”

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Sunday, November 17, 2013

Nokia Said to Delay 'Phablet' Until October

NEW YORK (TheStreet) - Nokia  (NOK) says we should expect an announcement some time next month that will "reinvent innovation." Strong words. The Finland technology innovator alerted journalists the world over, via Twitter of course, to set aside October 22nd for a very special announcement...

We'll be waiting.

Read: Unwarranted Apple Hate

Until then, information has been leaking through the usual sources about a possible late-September introduction for Nokia's Lumia 1520 - a smartphone with a 6-inch screen running on an upgraded version (8.1) of Microsoft's  (MSFT) Windows Phone operating system.

According to Reuters, Nokia had been rumored to be planning a release of the new device sometime this month. But the Microsoft-Nokia deal announced last week delayed the super-sized phone's introduction. Nokia shares traded in New York were rising 1.2% to $6.20 on Tuesday while and Microsoft shares were gaining 0.9% to $33.11 after announcing a share buyback program of as large as $40 billion.

For the short-term, Nokia and Microsoft are still being operated as separate companies,  though their $7.2 billion deal is expected to close "around the first quarter of 2014".

Read: Can You Handle Selling a Home By Yourself?

And Microsoft is still hosting its own big event in New York, next week. It is rumored that second-generation Surface Pro and Surface RT tablets (running second-generations Windows 8.1 and Windows RT 8.1 software) will be announced be the start of that event. It is also possible another Nokia product - a tablet code named "Sirius" running Windows RT - may also make an appearance.

None of this will  "reinvent innovation." For that, Nokia has asked us to wait until October.

Written by Gary Krakow in New York

To submit a news tip, send an email to tips@thestreet.com.

Friday, November 15, 2013

Make This Oil Move Immediately

From the Editor: In yesterday's members-only message, you got a rare look at Kent's track record and why he averages 55% on every recommendation. Today, Kent recommends a short-term move, based on the latest developments in Syria...

Damascus may have dodged a bullet (or a cruise missile), but nothing else has changed very much. Not in terms of risk.

That explains why the "Syrian Premium" remains. It may be slightly reduced, as you'll see. But it is likely to stay with us even after the threat of a military solution has been averted.

At least for now...

But in addition to the ongoing uncertainty, there are other aspects of market pricing that are coming into focus. These pressures were building even before the latest round of Syrian intrigue.

They involve the traditional factors of supply and demand, with some regional wrinkles thrown in for good measure.

I will have more to say shortly about the best way you can profit from these opportunities. But for the moment, there's one move to make in the immediate aftermath of the latest Syrian developments.

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Here's my full briefing...

The U.N. Chemical Weapons Report Emerges

The U.N. report on chemical weapons usage in Syria, released Monday, may not hold the Assad regime responsible for their usage directly. But the conclusions certainly supported the version put forward by Washington, Paris, and Riyadh.

The August attack on suburban Damascus employed massive amounts of sarin gas in a coordinated effort, one labeled a war crime in the report and the worst witnessed worldwide in 25 years. It required missile delivery systems, while the trajectories indicated launches from territory controlled by government forces. That combined with earlier intelligence discounting that the opposition had access to such nerve gas leaves little doubt.

Whether authorized by Syrian President Bashar al-Assad or some underling, this was a coordinated attack on civilians using a substance held in distain by the global community. Russia is continuing to question which side in the festering Syrian civil war bears responsibility.

On the other hand, Cyrillic lettering on casings points toward Moscow's hand in providing Assad with the weapons. They were also more potent than initially thought. The U.N. report concludes the gas was of higher quality than sarin found in Saddam Hussein's arsenal in Iraq.

A few weeks ago, all of this would have been enough for the U.S. to initiate a missile attack of its own on military installations inside Syria. The report may have been enough for the U.K. to come on board (the Parliament in London had refused to support a military move pending the report) and may have even attracted additional European support.

But the situation changed dramatically late last week...

A Deal for International Control

The Russian-brokered deal places Assad's chemical weapons under international control, with destruction of them set for the first half of 2014.

Now, those experienced in such matters flatly declare the time scale is unrealistic; accounting for 100% of the weapons is also not possible.

But the threat level is reduced. A powder keg situation had turned from a threatened military reprisal to a diplomatic initiative - one now likely to have a U.N. Security Council resolution to back it up.

Much is unresolved in this approach. But it does mean, at least for now, Washington has pulled back from an attack while Moscow has bought some time for its erstwhile ally.

Nonetheless, the reduction in tension, even if it turns out to be short-lived, will have an impact on oil prices.

How to Play the Next Big Oil Move

As the crisis escalated, what I have called a "Syrian Premium" (about $4 per barrel in New York and London) had been introduced into the pricing for crude. That premium had increased as the rhetoric on war increased.

As trade opened Tuesday morning, West Texas Intermediate (WTI, the benchmark crude traded on NYMEX) stood at a bit above $106 and Brent in London at more than $109. These levels were down 2.7% and 3.2% for the week, respectively.

Yet each still remained more than $3 a barrel above the anticipated pricing levels in the absence of a Syrian crisis.

In short, the prices have eased, but a premium remains.

That's because much uncertainty remains, as well.

Will the diplomatic approach succeed? Will the weapons be catalogued and destroyed? Will the Security Council step up and put some serious sanctions on Damascus? Will the new U.S.-Russian joint approach hold?

You can see why oil's volatility will continue even with chemical weapons use off the table. The Syrian mess remains even without the impending U.S. attack. The stability of the entire region is at issue, the conflict deepens, the Saudi-Iranian disagreement over surrogate plays in the Persian Gulf region is becoming worse, and the pressures on the global crude oil outlook remains pressured as a consequence.

So here's what to do...

1. Take a profit.

It's time to pull back a bit on exchange-traded fund (ETF) holdings allowing moves playing the WTI-Brent crude pricing spread. I have suggested previously the two primary plays here are PowerShares DB Energy (NYSE Arca: DBE) and United States Brent Oil Fund (NYSE Arca: BNO).

DBE provides a play on both the WTI-Brent spread as well as crack spreads (the difference between the crude oil prices and those for selected oil products). BNO is a straight entry into dollar-denominated Brent pricing in London.

Both have made gains during the Syrian run up, and some of that profit needs now to be creamed.

2. Redeploy the proceeds.

It's time to position yourself for regional variations in price. They're approaching. Fast. Here, the strategy will offset companies controlling large amounts of oil availability in certain global areas with the pricing variations emerging.

Simply put, this approach will be locating where the difference is pronounced enough to generate an added premium.

Much more on this as we move forward...