With economic data taking a backseat to a slew of better-than-expected earnings reports, the broad-based S&P 500 continues to knock off one all-time record close after another. For skeptics like me, that's an opportunity to see whether companies have earned their current valuations.
Keep in mind that some companies�deserve�their current valuations. Take railroad operator Union Pacific (NYSE: UNP ) for example. Union Pacific grew profit by 11% in its most recent quarter as it was able to offset demand weakness in coal with higher prices. With many railroad operators predicting a pickup in shipments in the second half of the year, Union Pacific certainly looks to be in great shape moving forward.
Still, other companies might deserve a kick in the pants. Here's a look at three companies that could be worth selling.
Raise the yellow caution flag
In spite of trucking company YRC Worldwide's (NASDAQ: YRCW ) share price doubling last week following the company's first quarterly profit in six years (that's right...�six years), shares are still down a mind-boggling 99.9928% over the past decade. Somehow avoiding bankruptcy a few years back by diluting existing shareholders into oblivion, YRC has investors now thinking the company may be on the mend. However, its history makes me�believe otherwise.
10 Best Freight Stocks To Buy For 2015: Auxilium Pharmaceuticals Inc.(AUXL)
Auxilium Pharmaceuticals, Inc. operates as a specialty biopharmaceutical company primarily in the United States. It focuses on developing and marketing products to urologists, endocrinologists, primary care physicians, hand surgeons, and rheumatologists, as well as to orthopedic, general, and plastic surgeons. The company markets XIAFLEX (collagenase clostridium histolyticum), an injectable collagenase enzyme for the treatment of adult Dupuytren?s contracture; and Testim, a topical 1% testosterone gel for the treatment of hypogonadism. The company?s clinical development products include XIAFLEX that is in Phase III clinical trials for the treatment of Peyronie?s disease, as well as in Phase II clinical trials for the treatment of Adhesive Capsulitis. In addition, it has rights to develop other products for the treatment of pain, urologic disease, and hormone replacement using its transmucosal film delivery system. The company has a strategic alliance with Asahi Kasei Ph arma Corporation for the development, commercialization, and supply of XIAFLEX, a biologic for the treatment of Dupuytren?s contracture and Peyronie?s disease. Auxilium Pharmaceuticals, Inc. was founded in 1999 and is headquartered in Malvern, Pennsylvania.
Advisors' Opinion:- [By Jake L'Ecuyer]
Auxilium Pharmaceuticals (NASDAQ: AUXL) was also up, gaining 12.11 percent to $21.67 following FDA approval of its Peyronie's disease treatment, Xiaflex.
- [By Roberto Pedone]
One potential earnings short-squeeze candidate is biotechnology player Auxilium Pharmaceuticals (AUXL), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Auxilium Pharmaceuticals to report revenue of $91.43 million on a loss of 3 cents per share.
During the last quarter, this company reported revenue of $66.2 million and GAAP reported sales were 10% lower than the prior-year quarter's $73.6 million. Also during the last quarter, this company reported non-GAAP EPS of -12 cents per share and GAAP EPS of -17 cents per share.
The current short interest as a percentage of the float for Auxilium Pharmaceuticals is pretty high at 11.1%. That means that out of the 39.84 million shares in the tradable float, 5.14 million shares are sold short by the bears. This is a decent short interest on a stock with a relatively low tradable float. If the bulls get the earnings news they're looking for, then shares of AUXL could easily rip higher post-earnings as the bears rush to cover some of their short bets.
From a technical perspective, AUXL 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 three months, with shares soaring higher from its low of $13.87 to its intraday high of $18.42 a share. During that uptrend, shares of AUXL have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of AUXL within range of triggering a major breakout trade post-earnings.
If you're bullish on AUXL, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key overhead resistance levels at $18.50 to $19.60 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 834,059 shares. If that breakout hits, then AUXL will set up
Top 10 Trucking Stocks To Own For 2014: Nevada Gold Corp (NVGC)
Nevada Gold Corp., incorporated on May 31, 2011, is an exploration-stage company. The Company is primarily engaged in the acquisition and exploration of mining properties.
The Company has an option to acquire certain claims located the Long Canyon Gold Trend of Northern Nevada State. As of February 28, 2013, the Company had no revenue.
Advisors' Opinion:- [By John Udovich]
Small cap OTC stocks Sovereign Lithium Inc (OTCMKTS: SLCO), Life Stem Genetics Inc (OTCMKTS: LIFS), Nevada Gold Corp (OTCMKTS: NVGC), Guar Global Ltd (OTCMKTS: GGBL) and Makism 3D Corp (OTCMKTS: MDDD) all saw their trading halted late last year by the SEC, but now all of these stocks are trading again. So what's going on and why the sudden crackdown? First, here is a quick look at what happened to the following five small cap stocks:
Top 10 Trucking Stocks To Own For 2014: Uranium Energy Corp. (UEC)
Uranium Energy Corp. engages in the exploration, development, extraction, and processing of uranium concentrates on projects located in the United States and Paraguay. As of July 31, 2012, it had mineral rights in uranium mining projects located in the states of Arizona, Colorado, New Mexico, Texas, and Wyoming, as well as in Paraguay. The company was formerly known as Carlin Gold Inc. and changed its name to Uranium Energy Corp. in January 2005. Uranium Energy Corp. was incorporated in 2003 and is based in Corpus Christi, Texas.
Advisors' Opinion:- [By The Energy Report]
JH: There are several companies that are in production that we follow in the U.S., such as Cameco Corp. (CCJ). Cameco produces at the Smith Ranch-Highland in the Powder River Basin. There's Uranium One, also in the Powder River Basin. There's Uranium Energy Corp. (UEC). A few near-term producers are rapidly coming online. Ur-Energy Inc. (URG) is one company we like in Wyoming.
Top 10 Trucking Stocks To Own For 2014: NewMarket Corp (NEU)
NewMarket Corporation (NewMarket), incorporated in 2004, is a holding company, which is the parent company of Afton Chemical Corporation (Afton), Ethyl Corporation (Ethyl), NewMarket Services Corporation (NewMarket Services), and NewMarket Development Corporation (NewMarket Development). Each of the Company�� subsidiaries manages its own assets and liabilities. Afton encompasses the petroleum additives business, while Ethyl represents the sale and distribution of tetraethyl lead (TEL) in North America and certain petroleum additives manufacturing operations. NewMarket Development manages the property, which it owns in Richmond, Virginia. NewMarket Services provides administrative services to NewMarket, Afton, Ethyl, and NewMarket Development. NewMarket Services departmental expenses and other expenses are billed to NewMarket and each subsidiary pursuant to services agreements between the companies.
As a specialty chemicals company, Afton develops, manufactures, and blends formulated fuel and lubricant additive packages, and markets and sells these products globally. Afton is a lubricant and fuel additives companies globally. Lubricant and fuel additives are products for maintenance and reliable operation of all vehicles and machinery. Ethyl provides contract manufacturing services to Afton and to third parties and is one of the marketers of TEL in North America. NewMarket Development manages the property, which it owns on a site in Richmond, Virginia consisting of approximately 64 acres.
Petroleum Additives
Petroleum additives are used in lubricating oils and fuels to enhance their performance in machinery, vehicles, and other equipment. It manufactures chemical components, which are selected to perform specific functions and combine those chemicals with other components to form additive packages for use in specified end-user applications. The petroleum additives market is an international marketplace, with customers ranging from oil companies and refineries t! o original equipment manufacturers (OEMs) and other specialty chemical companies. Lubricant additives are ingredients for lubricating oils. Lubricant additives are used in a range of vehicle and industrial applications, including engine oils, transmission fluids, gear oils, hydraulic oils, turbine oils, and in other application where metal-to-metal moving parts are utilized. Lubricant additives are organic and synthetic chemical components, which enhance wear protection, prevent deposits, and protect against the hostile operating environment of an engine, transmission, axle, hydraulic pump, or industrial machine.
Lubricants are used in every piece of operating machinery from heavy industrial equipment to vehicles. Lubricants provide a layer of protection between moving mechanical parts. Lubricants serve the functions, such as friction reduction, heat removal and containment of contaminants.
The Company offers a range of lubricant additive products, each of which is composed of component chemicals specially selected to perform desired functions. It manufactures the chemical components and blends these components to create formulated additives packages. Purchasers of lubricant additives tend to be oil companies, distributors, refineries, and compounders/blenders. The engine oils market�� primary customers include consumers, service dealers, and OEMs. Afton offers products, which enhances the performance of mineral, part-synthetic, and fully-synthetic engine oils.
The driveline additives submarket is consisted of additives designed for products, such as transmission fluids, gear oils, and off-road fluids. Transmission fluids serve as the power transmission and heat transfer medium in the area of the transmission. Gear oil additives lubricate gears, bearings, clutches, and bands in the gear-box and are used in vehicles, off-highway, hydraulic, and marine equipment. Other products in this area include hydraulic transmission fluids, universal tractor fluids, power ste! ering flu! ids, shock absorber fluids, gear oils and lubricants for machinery. These additives are sold to oil companies and often sold to vehicle OEMs for new vehicles. End-products are also sold to service dealers for aftermarket servicing (service-fill), as well as retailers and distributors.
The industrial additives submarket is consisted of additives designed for products for industrial applications, such as hydraulic fluids, grease, industrial gear fluids, industrial specialty applications, and metalworking additives. This submarket also shares in the 30% of the market not covered by engine oils. These products must conform to industry specifications, OEM requirements and/or application and operating environment demands. Industrial additives are sold to oil companies, service dealers for after-market servicing, and distributors.
The types of fuel additives the Company offers include gasoline performance additives, which clean and maintain fuel delivery systems, including fuel injectors and intake valves, in gasoline engine; diesel fuel performance additives, which perform similar cleaning functions in diesel engines; cetane improvers, which increase the cetane number in diesel fuel by reducing the delay between injection and ignition; stabilizers, which reduce or eliminate oxidation in fuel; corrosion inhibitors, which minimize the corrosive effects of combustion by-products and prevent rust; lubricity additives, which restore lubricating properties lost in the refining process; cold flow improvers, which improve the pumping and flow of diesel in cold temperatures, and octane enhancers. It offers a range of fuel additives globally and sells its products to fuel marketers and refiners, as well as independent terminals and other fuel blenders.
Real Estate Development
The real estate development segment represents the operations of Foundry Park I, LLC (Foundry Park I). The Company is exploring various development opportunities for other portions of the proper! ty it own! s, as the demand warrants.
All Other
The All other category includes the continuing operations of the TEL business (primarily sales of TEL in North America), as well as contract manufacturing performed by Ethyl. Ethyl manufacturing facilities include its Houston, Texas and Sarnia, Ontario, Canada plants. The Houston plant is engaged in petroleum additives manufacturing and produces both lubricant additives and fuel additives. The Sarnia plant is engaged in petroleum additives manufacturing and produces fuel additives. The All other category financial results include a service fee charged by Ethyl for its production services to Afton. Its remaining manufacturing facilities are part of Afton and produce both lubricant additives and fuel additives.
The Company competes with Berkshire Hathaway Inc., ExxonMobil Chemical, Royal Dutch Shell plc, Chevron Oronite Company LLC, BASF AG, Chevron Oronite Company LLC, The Lubrizol Corporation, Innospec, Inc., Eurenco and EPC - U.K.
Advisors' Opinion:- [By John Udovich]
The biotech sector has been pretty exciting this year�with small cap biotech stocks Prana Biotechnology Limited (NASDAQ: PRAN) and TNI BioTech (OTCMKTS: TNIB) having recently produced noteworthy news for investors�while Acceleron Pharma, Inc (NASDAQ: XLRN), Ophthotech (NASDAQ: OPHT) and BIND Therapeutics (NASDAQ: BIND) have just�set term sheets for their upcoming IPOs. Just consider all of the following recent news:
Surge in Biotech IPOs. Unquote.com has noted�a surge in biotech IPOs this year as there have been�almost 30 biotech IPOs since January - marking a 13-year high and sparking some concerns about a bubble. More specifically and according to the National Venture Capital Association (NVCA), there was just one venture capital-backed biotech IPO in the US in the first quarter of this year, but this was followed by a massive increase of 20 in�the second quarter and a�further six since July. There has also been a small uptick in�venture capital-backed European biotech companies going public (four) with�a listing on the Nasdaq appearing to be the most popular or rather the safest option. � New IPO Term Sheets. This month, a couple of small cap biotech companies announced their terms for upcoming IPOs, including 1)�Acceleron Pharma, Inc, a clinical stage biotech developing protein therapeutics for cancer and rare diseases, plans to raise $65 million by offering 4.7 million shares at a price range of $13 to $15; 2) Ophthotech, a clinical-stage biotech developing therapeutics for eye diseases, plans to raise $100 million by offering 5.7 million shares at a price range of $16 to $19; and 3) BIND Therapeutics, a clinical-stage biotech developing a platform of targeted and programmable therapeutics, plans to raise $71 million by offering 4.7 million shares at a price range of $14 to $16. Biotechs Invest More on R&D. The 2013 BDO Biotech Briefing examined the most recent 10-K SEC filings of publicly traded companies listed on the Nasdaq Biotechnolog
Top 10 Trucking Stocks To Own For 2014: AtriCure Inc.(ATRC)
AtriCure, Inc., a medical device company, develops, manufactures, and sells cardiac surgical ablation systems designed to create precise lesions, or scars, in cardiac tissue. Its primary product line includes isolator synergy bipolar radio-frequency ablation clamps for open-heart procedures and minimally invasive procedures; ablation and sensing unit, a compact power generator that delivers bipolar radio-frequency (RF) energy; AtriCure switch box, a compact switch box providing the technology needed for the dual pulsing electrodes, and the ability to connect and toggle between multiple RF devices; isolator multifunctional pen, a disposable RF device enabling surgeons to toggle back and forth between temporary pacing, sensing, and stimulation and ablation; and coolrail linear ablation device, a disposable linear RF ablation device, which allows physicians to create an expanded cardiac ablation lesion set during minimally invasive procedures. The company also offers cryoabla tion system, which consists of various reusable and disposable devices, including the Frigitronics CCS-200 product line for cardiac ablation; and Cryo1, a disposable cryoablation device, as well as AtriClip system, which is designed to exclude the left atrial appendage by implanting the device during concomitant open surgical procedures from the outside of the heart. In addition, it sells enabling technologies, including Lumitip dissector to separate tissues to provide access to key anatomical structures targeted for ablation; and MicroPace ORLab system, a stimulating, mapping, and recording system enabling physicians to confirm the ablation lines being created are forming electrical barriers or lines of block. The company sells its medical devices to hospitals and medical centers in the United States and internationally. AtriCure, Inc. is headquartered in West Chester, Ohio.
Advisors' Opinion:- [By John Udovich]
Small cap heart stocks Sunshine Heart Inc (NASDAQ: SSH), Abiomed, Inc (NASDAQ: ABMD) and AtriCure Inc (NASDAQ: ATRC) each find different ways go to the heart of the problem for cardiac�patients and have all been good performers for investors this year. After all and according to statistics collected by the CDC, heart disease is the leading cause of death for both men and women as about 600,000 people die of heart disease in the United States every year���accounting�for 1 in every 4 deaths. Moreover, roughly 715,000 Americans have a heart attack every year and�ff these, 525,000 are a first heart attack and 190,000 happen to people who have already had one. In other words, there is a big market for the following small cap heart stocks to address:
Top 10 Trucking Stocks To Own For 2014: CRA InternationalInc.(CRAI)
CRA International, Inc. provides litigation, regulatory, financial consulting, and management consulting services worldwide. It advices clients on economic and financial matters pertaining to litigation and regulatory proceedings; and guides corporations through critical business strategy and performance-related issues. The company offers consulting services, including research and analysis, expert testimony, and support in litigation and regulatory proceedings in various areas of finance, accounting, economics, insurance, and forensic accounting and investigations to corporate clients and attorneys. It also provides consulting services related to class certification, damages analysis, expert reports and testimony, regulatory analysis, strategy development, valuation of tangible and intangible assets, risk management, and transaction support to law firms, businesses, and government agencies. In addition, the company offers management consulting services consisting of strat egy development, performance improvement, corporate portfolio analysis, market demand estimation, new product pricing strategies, intellectual property and other assets valuation, competitors? actions assessment, and new sources of supply analysis. The company serves customers in banking and capital markets, chemicals and industrials, consumer products, energy and utilities, financial services, healthcare, insurance, life sciences, manufacturing, media, mining, metals and materials, oil and gas, real estate, retail, sports, telecommunications, and transportation industries. Its clients include domestic and foreign companies; federal, state, and local domestic government agencies; governments of foreign countries; public and private utilities; and national and international trade associations. CRA International, Inc. was founded in 1965 and is headquartered in Boston, Massachusetts.
Advisors' Opinion:- [By Lisa Levin]
CRA International (NASDAQ: CRAI) shares reached a new 52-week high of $26.845. CRA International shares have jumped 45.84% over the past 52 weeks, while the S&P 500 index has gained 18.08% in the same period.
Top 10 Trucking Stocks To Own For 2014: Antofagasta PLC (ANTO)
Antofagasta plc (Antofagasta) is a Chile-based copper mining company with interests in transport and water distribution. The Company operates in three segments: Mining, Transport and Water. Antofagasta is a holding company that operates through its subsidiaries, associates and joint ventures. The principal activities of the Company are copper mining (including exploration and development), the transportation of freight by rail and road and the distribution of water. Its mining operations produce copper with by-products of gold, molybdenum and silver. Its activities are mainly concentrated in Chile. The Company�� segments include Los Pelambres, Esperanza, El Tesoro, Michilla, Antucoya, Exploration and evaluation, Railway and other transport services, Water concession, and Corporate and other items. Advisors' Opinion:- [By Jonathan Morgan]
Anglo American and Rio Tinto retreated 2.8 percent to 1,421.5 pence and 2.4 percent to 2,740 pence, respectively. Lonmin Plc, the world�� third-largest platinum producer, slipped 3.2 percent to 287.6 pence. Antofagasta Plc (ANTO), the Chilean copper producer, declined 1.2 percent to 911 pence.
- [By Namitha Jagadeesh]
British American Tobacco Plc and Imperial Tobacco Group Plc (IMT) each lost at least 1.5 percent as American peer Philip Morris International Inc. forecast 2014 profit growth below its long-term target. Antofagasta Plc (ANTO) and Vedanta Resources Plc (VED) followed miners lower, sliding at least 2 percent. Johnson Matthey Plc (JMAT) gained 3.9 percent after posting better-than-forecast profit and raising its dividend.
- [By Sarah Jones]
Among commodity producers, Antofagasta (ANTO) Plc rose 1.4 percent to 904 pence as base metals advanced in London. Glencore Xstrata added 3.2 percent to 315.9 pence and Rio Tinto Group increased 1 percent to 2,786 pence.
- [By Sarah Jones]
Vedanta Resources slumped 6.5 percent to 1,026 pence as copper tumbled on the London Metal Exchange to its lowest price since July 2010. Antofagasta Plc (ANTO), the copper producer controlled by Chile�� Luksic family, slid 3 percent to 813 pence and Anglo American Plc (AAL) lost 4 percent to 1,297.5 pence.
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