Best Tiny Stocks For 2017: April 2014

Wednesday, April 30, 2014

ANN Is a Good Buy in a Difficult Retail Environment

ANN (ANN), with its strong quarterly results, indicates that the company is making a comeback. Despite headwinds in the retail apparel market and competition, ANN emerged as a winner by reporting strong quarterly results. ANN has outperformed in the past and is continually working on improving market share. The company looks positioned for a comeback and could be a good long-term holding as its recent results suggest.

Performing Well

The reason for the success of ANN has been its service of providing customers with fashionable, versatile products, excellent value for money, and an engaging shopping experience both in-store and online. As a result, the company saw a terrific 7% rise in its sales to $658 million. On the back of strong comps growth and strong revenue growth, EPS increased 17.1% year over year to $0.89.

Moving on, ANN is confident regarding a comeback with aggressive strategies. It is focusing on various aspects worldwide to gain market share. It is planning to strengthen its multi-channel initiative including e-commerce. ANN is expecting online sales to boost the business as it is seeing good customer response online led by high traffic and conversion at both brands. The retailer is further working on capturing small and mid markets under a strategy to promote LOFT in such markets.

ANN is worried about the weakness at the ANN Taylor factory outlet stores which declined by 6.9% in the past as a result of weak traffic and muted customer spending. The weakness was also due to the bad weather which further added to its woes. The company is therefore focusing more on online sales to offset the effect of weakness at the Taylor factory outlet that management expects in the next quarter.

Despite ANN's woes, the retailer provided a favorable margin forecast. Despite soft traffic, muted spending and bad weather, the company expects to see positive comps at both ANN Taylor and LOFT. Moreover, ANN's good, better and best pricing policy is also helping it to sell its products without discounts.

Peers' Moves

ANN majorly drove its revenue from comps. To drive its revenue up in the third quarter of fiscal 2013, competitor Chico (CHS)'s had to rely on its new store openings. Its comps declined 1.3% year over year due to weak traffic and a highly promotional environment. On the back of 115 new store openings, revenue grew 3% year over year to $655.6 million. However, earnings declined 12% year over year to $0.22 per share.

On the other hand, Chico's started the fourth quarter on the front foot. It is finding its strength in multi-channel expansion, crossing national boundaries for international growth. With aggressive investment between $140 million and $150 million and opening 120 to 130 new stores in 2014, the company is aiming at bolstering its presence in these markets.

As compared to Chico's, which was up with a strong third quarter, Aeropostale (ARO) is continually seeing weakness as its comps declined 15%, as a result of which the top-line fell by 15.1% to $514.6 million. The company lost its target customers as a result of poor performance, resulting in the widening of losses to $0.29 per share. It continues to disappoint investors as it expects this loss to continue in next quarter as well.

Conclusion

ANN managed to survive performing outstandingly amid stiff competition, while other apparel retailers are finding difficulty in growing comps and earnings. ANN also looks reasonable and can be a good pick in a difficult retail apparel environment.

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Tuesday, April 29, 2014

Pennsylvania Real Estate Investment Trust is Oversold

The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Pennsylvania Real Estate Investment Trust (NYSE: PEI) presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.

But making Pennsylvania Real Estate Investment Trust an even more interesting and timely stock to look at, is the fact that in trading on Tuesday, shares of PEI entered into oversold territory, changing hands as low as $16.35 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

Click here to find out what 9 other oversold dividend stocks you need to know about, at DividendChannel.com »

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In the case of Pennsylvania Real Estate Investment Trust, the RSI reading has hit 29.7 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 54.7. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, PEI's recent annualized dividend of 0.80/share (currently paid in quarterly installments) works out to an annual yield of 4.85% based upon the recent $16.52 share price.

A bullish investor could look at PEI's 29.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on PEI is its dividend history.

In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.

PEI+Dividend+History+Chart

Can your brain be trained to become a chart-predicting wizard? Click here to find out

According to the ETF Finder at ETFChannel.com, PEI makes up 1.00% of the iShares Retail Real Estate Capped ETF (AMEX: RTL) which is trading relatively unchanged on the day Tuesday.

Monday, April 28, 2014

How to Trade Binaries With Only 15 Minutes A Day (Series 2 of 4)

In the first article of this four-part series, you learned how to use diagnostic bars with expected volume, and expected range channels to trade with only 15 minutes a day. Here in part 2, you will learn how to apply this system to make money on binaries using this system by making money on time.

How To Make Money On Time With Binary Options, With Nadex Binaries

Making money on time with an option is known as premium collection. You are, in fact, collecting the time value in the option.

A binary option has a value of $0 to $100. Nadex binary options have strike prices. If you buy a binary, the price you buy at is the risk, and $100 minus that price is the maximum profit potential. If you sell a binary option, the price you sell at is the profit potential, and that price subtracted from $100 is the risk. You can do one or hundreds of contracts at a time, depending on your account size and your risk management method.

Related: What Is A Nadex Binary Option?

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If you buy a binary option that has a strike price under the underlying market's price, then if the market stays flat, moves up or moves down, but still expires above the strike price as of expiration, you will be profitable on the trade.

You can also do the inverse. If you sell a binary option that has a strike price above the underlying market's price, then if the market stays flat, moves down or moves up but does not stay above your binary strike price as of expiration, you will be profitable on the trade.

If Doing A Buy Side Premium Collection Nadex Binary Option Trade, Follow This Example

1) The market (i.e. ES S&P 500 Emini Futures) is at 1835 at 9:45 a.m., and the system gives you a buy signal. ((A) Actual Volume exceeds expected volume in the last 15 minutes, (B) with an up close bar, (C) and the subsequent bar breaks that bar's high).

2) At 9:45 a.m. you buy a Nadex binary US 500 > 1833 @ 10:00 a.m. (meaning you are stating that The S&P 500 will be above 1832 as of expiration 15 minutes later.

You buy the binary for a cost of $70.00. Therefore, the risk is $70 and the profit potential is $30.

Why would you do a trade with that kind of risk-to-reward ratio? Probability is the main answer. Remember, the market is already above your strike. It can stay flat, it can move up, it can move down a lot and come back or just move down a little and you still will be profitable. The only scenario where the trade loses if held to expiration, is if it goes down multiple points and stays down in the next 15 minutes.

It is important to remember you do not have to hold the binary until expiration. This is a huge benefit of trading on Nadex. If the market moves up, you can exit when the binary hits the value of $95 for a @25 profit. Likewise, if the market came down to your strike at $1833 you could exit for $50 (less a few dollars on bid/ask spread say $47.).

This would allow you to have a risk of $23 and a profit of $25, giving you a much better risk-to-reward ratio. Now if the market stays flat, moves up or does not move down more than a few points in the next few minutes, you will be profitable on the trade. If it does move down, then you have a 1:1 risk/reward ratio on the trade but over a 70% probability on the trade (matching the price you purchased at $70 as 3/4 scenarios you will profit on the trade).

3) In this case, it expired at 1836.75 above your 1833 strike. Therefore, you are profitable on the trade at either $30 or $25 if you took profit before expiration which is always a wise plan.

You can see an example of this chart by clicking here. You will notice the three steps on the 10:00 a.m. expiration, less than 15 minutes before expiration: the entry, the strike, and the expiration price. binary_options_nadex_apex_investing_es_s_and_p_500_es_example_buy_nadex_binary_option_buy_signal_0.png

binary_options_nadex_apex_investing_es_s_and_p_500_es_example_buy_nadex_binary_option_buy_signal_0.png

Used with permission from Apex Investing Institute LLC ApexInvesting.com

Also, you can do trend collection (make money on movement) with binaries for a much higher payout on this strategy, or you can combine the premium collection and trend collection together for what is known as a double binary. We will discuss applying these two additional binary strategies in follow-up articles.

Posted-In: apexinvesting binary option signal binary option trading system binary options darrell martin how to trade binary options Nadex nadex binary options

Sunday, April 27, 2014

Verizon Takes Shape, and Illumina Steps Up

On this day in economic and business history ...

The company now known as Verizon (NYSE: VZ ) was first created when Bell Atlantic announced its acquisition of rival telecom GTE on July 28, 1998. The $52.8 billion megadeal immediately vaulted the as-yet-unnamed Verizon (it would be nearly two years before "Verizon" was chosen as the new telecom's corporate name) into the highest levels of American telecom power. Of course, a deal of this size prompted federal regulators to announce plans for a close examination, as Bell Atlantic was already the largest local phone company in the United States, and the two telecoms would also combine to serve 10.6 million wireless subscribers, nearly a sixth of the entire U.S. wireless market at the time.

It took two years for the deal to work its way through the regulatory process, and by the time the two companies officially merged into Verizon, they served 77 million wired-line subscribers. Verizon became the 10th-largest company by revenue in the U.S. in its first year of operation, and its wireless partnership has long held on to the subscriber lead, with more than 106 million subscribers reported in its 2012 fiscal year a nearly fivefold improvement over the 23 million subscribers reported after the merger closed. Verizon's importance to the engines of American prosperity earned it a spot on the Dow Jones Industrial Average (DJINDICES: ^DJI ) a mere four years after its creation.

Boil 'em, mash 'em, stick 'em in a stew
July 28, 1586, is the earliest precise date known for the introduction of potatoes to the European continent. That day, Sir Walter Raleigh and Thomas Harriot returned to England from a voyage to the New World with some of the hardy tubers in their cargo hold. Some records exist of potatoes in Europe from as far back as the mid-1570s, when Spanish explorers returned with potatoes from their colonies. However, for its precise date and for its importance to later Irish economic development, the 1586 introduction should be considered vital.

Today, the potato is the fifth most important crop in the world, but it achieved this status in Europe far later than the four other largest staple crops. It remained largely a curiosity in the Old World until the 18th century. Once potatoes became widely accepted, they imparted enormous benefits to the European continent -- a study by Nathan Nunn and Nancy Qian discovered that potatoes were responsible for at least a quarter of Old World population growth between 1700 and 1900. In Smithsonian magazine's feature on potatoes (a worthwhile read for curious food-history buffs), one historian is quoted as crediting the potato with the rise of the West.

A sequence of success
Illumina (NASDAQ: ILMN ) went public on July 28, 2000, becoming one of many companies to see its stock more than double on the first day during the end of the dot-com bubble. Its initial $16 pricing became a $39 share price by the end of the day, turning the unproven company into a $230 million market-cap multibagger in just a few hours while leaving more than $100 million in financing on the table.

Illumina stood out from the fly-by-night websites that typified dot-com investing excess, because it would soon become one of the leaders in the fast-moving field of genome sequencing. Exactly five years earlier, on July 28, 1995, scientists working for the Human Genome Project had successfully sequenced the first complete genome, that of bacterial influenza (a cause of pneumonia and meningitis, but not of the flu, which is caused by a viral infection). Less than a year later, the project would near its goal of sequencing the complete human genome -- and that goal was reached in 2003, two years ahead of schedule. By this point, Illumina had joined the race with a genotyping product of its own, and by 2005 Illumina stepped to the fore of genomics with a whole-genome sequencing product.

Today, Illumina dominates two-thirds of the global sequencing market. Tomorrow, it might be anyone's game. The cost of sequencing a complete genome has already fallen from $70 million in 2002 -- when Illumina launched its first genomic product -- to less than $7,000 today, according to the National Human Genome Research Institute. Such rapid progress points to one of two situations -- dominance by the incumbent, or an uprising of next-gen technology.

Innovations like genome sequencing will be essential to meet Obamacare's goals of driving down health-care costs for everyone, but road to Obamacare's successful future is far from clear for millions of ordinary Americans. To help educate investors about the massive changes coming to the American health-care system, The Motley Fool has created a special free report that makes this complex topic easily understandable. Download "Everything You Need to Know About Obamacare" now and discover how the law may affect your taxes, health insurance, investments, and more. Click here for your free copy today.

Saturday, April 26, 2014

Can Apple Generate Enough Cash To Reward Its Investors?

Technology giant Apple's (AAPL) reported a better-than-expected second quarter 2014 results on April 23, following which shares jumped 7.89% in the after-hours. Surprisingly, Apple was successful in maintaining the trend for higher iPhone sales amid tough competition from Samsung (SSNLF) and the Android platform. Sales of Apple's set-top boxes have reached 20 million by the quarter-end since its launch. However, its iPad sales were hit hard, and iPod sales continued to drop sharply.

But Apple made some great announcements for its shareholders. It has approved an additional $30 billion for share buyback and increased quarterly cash dividend per share by 8%. This will require huge amount of cash. True that Apple is a cash rich company, but it's also facing competitive pressure and a slump in sales of its flagship products. Let's zero in on some of the factors that could affect Apple's cash position either ways, going forward.

iPhone Momentum Looks Good

Apple sold roughly 44 million iPhones during the second quarter, showing nice double digit growth year over year. The unit sales also surpassed the Street's expectations and the improvement was mostly driven by higher demand from emerging markets, especially China. Demand was also witnessed from developed economies. Analysts are optimistic about iPhone 6, which is expected to hit stores by this year end. If Apple succeeds in a planned price hike (~$100) for iPhone 6, it can raise gross margins.

Sales of Mac Are Growing

Mac unit sales grew 5% year over year. The growth, although small, is interesting as it surpassed the worldwide industry rate. Global PC shipments have dropped 1.7% in the first quarter of 2014. Though the PC market has been declining for eight consecutive quarters, the rate of decline has eased. Also, it is important to note that most of the PC market growth has come from the Europe, Middle East and Africa (EMEA) regions, particularly due to the rebound in Western Europe. This could benefit Apple's redesigned Mac Pro. After the sales of earlier versions of Mac Pro got banned in Europe due to some regulatory issues, Apple has started shipping the latest Mac Pros from last December. Apple could see further sales growth for its Mac products in the coming quarters.

New Product Launches

Apple has created innovative wonders like iPod, iPhone and iPad. But with the loss of Steve Jobs, the trend of wooing customers seems to have halted. Apple is planning to launch some innovative products this year. This would include iTV, iWatch and a hearing aid that can be connected to iPhones, iPads and iPods. Apple's product launches are known for pushing sales up enormously. So, all eyes will be on the success of these products to generate sufficient revenues that could secure the company's cash position.

Poor iPad Performance

In the past quarter, sales of iPad dropped 16% year over year. According to management, the decline was driven by channel inventory changes. Though the obvious reasons could be -- cheaper offerings from Amazon (AMZN), Google (GOOG) and Samsung, and higher preference for a phone upgrade than a tablet upgrade. iPad is Apple's second largest revenue contributor, and if the company fails to boost sales total revenue will be severely hit.

Debt Could Go Up

Apple plans to gather more funds from both domestic and international public debt markets, mainly to pay off the hiked dividend and buyback shares. This will push the current debt level. At the end of the quarter, Apple's long-term debt balance stands at $17 billion. It is not clear how much more debt the company will raise, but it will surely not be a trivial amount. This will further add to the debt burden of the company as a whole, and cost of debt will also go up, limiting profitability.

Huge Acquisitions

Within the past 15 months to 16 months, the tech giant has acquired 23 odd companies and plans to take up another one shortly. Total investments in acquisitions during this period were $11.12 billion. It also spent $1.02 billion in cash-based acquisitions. It's worth noting that the total value of Apple's acquisitions during the period outpaced Google's in 2013. Acquisitions are good for expanding geographic reach, enhancing capabilities and strengthening portfolio, but they are worth when properly and timely monetized.

Final Thoughts

The android platform is eating into Apple's share in both the smartphone and tablet markets. That is why launching innovative products becomes that much more important to regain the sales momentum. Apple has a huge cash pile compared with its debt level and hence servicing debt wouldn't be a problem. But positive synergies from the acquired units will be necessary to support Apple's long-term growth.

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Micintos - 14 hours ago

Mr. Market will never understand Apple's success like its customers do. According to Patently Apple:

Chitika Insights latest web traffic stats for tablets in the US and Canadian markets has rolled out and Apple has crushed their Android competitors handily. Chitika notes that "the proverbial elephant in the room is iPad usage share, which still stands at over 77% of all U.S. and Canadian tablet-based Web traffic." http://www.patentlyapple.com/patently-apple/2014/04/apples-ipad-continues-to-crush-all-android-tablets-combined-with-77-of-web-traffic-in-the-us-and-canada.html

So which share of the tablet market is Adroid dominating? The ones in a drawer, perhaps?

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Friday, April 25, 2014

America's Biggest Edge Over the Rest of the World

Check out these recent headlines:

"Japan's population falls by record 244,000 in 2013"

"China's Working Population Fell Again in 2013"

"Germany Fights Population Drop"

"Putin Vows to Reverse Russian Population Decline"

The Census Bureau estimates at least 27 large counties will have smaller populations in 2050 than today, including China, Russia, Germany, South Korea, and Japan. This is not good news. There are two ways to grow an economy: productivity growth, and population growth. Some of the world's largest economies will soon get no help from the latter.

To understand what an aging population does to an economy, it helps to know the story of Japan since the end of World War II.

Like America, Japan had a baby boom right after the war as demobilized soldiers married and families were rebuilt. Eight million Japanese babies were born from 1947 to 1949, which is enormous given a population of around 70 million at the time.

But Japan was bludgeoned during the last year of the war, with its industrial base and major cities bombed out. The book Embracing Defeat notes that in 1945, rural Japanese living standards fell to 65% of prewar levels, and city living standards to 35%. One million Tokyo residents alone were homeless, with more than a quarter-million buildings destroyed. Three months after surrender, an Australian newspaper noted that Japan had enough food supplies to "furnish a diet averaging only 1,551 calories per person next year, compared with 2,160 calories which the Japanese healthy authorities hold is necessary."

It's hard to support a growing population in these conditions. So the Japanese did something about it. Tokyo-based journalist Eamonn Fingleton explains:

[In] the terrible winter of 1945-6 ... newly bereft of their empire, the Japanese nearly starved to death. With overseas expansion no longer an option, Japanese leaders determined as a top priority to cut the birthrate. Thereafter a culture of small families set in that has continued to the present day.

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Mariko Kato of The Japan Times explains how this was done:

Abortion was effectively legalized in 1948 ... The government also accepted other contraceptives, including the diaphragm, condoms and spermicide. Previously they were mainly considered ways to prevent sexually transmitted diseases.

It worked. Japanese fertility jumped from 3.1 children per woman in 1945 to 4.51 per woman in 1947 -- that was the baby boom -- and then plunged all the way down to 1.96 by 1961, which isn't enough to keep population growth positive.

This had a big impact on the economy. As Japan entered the 1970s and 1980s, the baby boom generation -- called "dankai," or the "massive group" -- hit their peak earning and spending years. They started businesses, bought cars, built houses and fueled an economic boom. Economists extrapolated this growth and figured Japan would own the 21st century. In 1988, former Reagan official Clyde Prestowitz said, "The American century is over. The big development in the latter part of the century is the emergence of Japan as a major superpower."

But over the last two decades, Japan's dankai ended their peak-spending years, and began retiring. Spending growth dropped and the need for assistance rose. The dankai passed the baton to a smaller cohort produced by Japan's small-family culture.

Japan's economy is smaller today than it was in the early 1990s. There are many reasons for this, but as Mark Steyn writes, "there is no precedent in human history for economic growth on declining human capital." In 1992, there were 86.7 million Japanese aged 15 to 64 (prime working age). Today, there are 77.5 million. That's the equivalent losing three-quarters the population of Tokyo.

Japan has demonstrated better than any country that it is devilishly hard to grow and economy with an old, graying, and shrinking population. This is an important lesson, because it describes a lot of the developed world today.

Except, perhaps, America.

Yes, our country is aging. Baby boomers -- America's own dankai -- are retiring. But America has some of the best demographics in the developed world, largely due to immigration. Twenty-five million more people live in America today than did in 2004. That increase is like adding three New York Cities. The Census Bureau projects the U.S. population will rise by another 26 million over the next decade, and by more than 80 million by 2050.

Importantly, America's working-age population is still growing, and projected to increase by 5.5 million over the next decade. Tobias Levkovich of Citigroup writes that, for the first time since the 1990s, the number of Americans age 35 to 39 -- a sweet spot for spending -- is set to rise over the next two decades, according to Census Bureau projections.

Some of the biggest economies in the world can't say the same. Predicting the future is hard, but I think this is one of the most important charts of the coming decades:

Source: Census Bureau International Database.

No one in the 1920s forecasting Japan's economic path could have predicted the demographic shocks it faced in the 1940s. That's true today, too: These are just projections, and projections are often wrong.

But there's so much focus today on how America's retiring baby boomers are going to hurt the economy. The truth is that not only will the U.S. add tens of millions of more workers over the coming decades, but few other countries can say the same. (India will grow its working population more, but its lower life expectancy and massive poverty tamps down this benefit). This is America's biggest edge over the rest of the world. And just as economists overlooked how devastating Japan's poor demographics would be 20 years ago, I get the feeling they're underestimating how advantageous America's will be 20 years from now.

Check back every Tuesday and Friday for Morgan Housel's columns on finance and economics.

Wednesday, April 23, 2014

Apple Q2 Earnings Live Blog Recap

This story has been updated from 4:08 p.m. EST.

NEW YORK (TheStreet) -- Apple's (AAPL) fiscal second-quarter earnings blew past Wall Street's estimates sending shares roughly 8% higher in after-hours trading.

Apple reported second-quarter earnings of $11.62 a share, generating $45.6 billion in revenue. The company shipped 43.7 million iPhones, 16.4 million iPads, and shipped 4.1 million Macs during the quarter. Gross margin, a highly watched level for Apple, came in at 39.3%.

Shares were up 7.7% to $565.15 in post markets. "We're very proud of our quarterly results, especially our strong iPhone sales and record revenue from services," said Tim Cook, Apple's CEO. "We're eagerly looking forward to introducing more new products and services that only Apple could bring to market." "We generated $13.5 billion in cash flow from operations and returned almost $21 billion in cash to shareholders through dividends and share repurchases during the March quarter," said Peter Oppenheimer, Apple's CFO. "That brings cumulative payments under our capital return program to $66 billion." Analysts surveyed by Thomson Reuters were expecting the Cupertino, Calif.-based Apple to report earnings of $10.18 a share on $43.53 billion in revenue, which would be a slight decline in revenue year over year, as Apple continues to promise new products and new categories. Apple also announced that it was upping its capital allocation program to over $130 billion by the end of calendar year 2015. As part of the program, the Board increased its share repurchase authorization to $90 billion from $60 billion, and boosted its quarterly dividend by 8%, to $3.29 a share. "The Company also plans to increase its dividend on an annual basis. With annual payments of $11 billion, Apple is among the largest dividend payers in the world," the company said in the release. From August 2012 through March 2014, Apple has spent $66 billion in cash on its capital return program. Apple will access the public debt markets this year to help paying for the program, and raise an "amount of term debt similar to what the Company raised during 2013." "We are announcing a significant increase to our capital return program," Cook said, when discussing the allocation program. "We're confident in Apple's future and see tremendous value in Apple's stock, so we're continuing to allocate the majority of our program to share repurchases. We're also happy to be increasing our dividend for the second time in less than two years." The Board of Directors also announced a seven-for-one stock split, effective June 2, 2014. Shares will will begin trading on a split-adjusted basis on June 9, 2014.

For the fiscal third quarter, Apple expects revenue between $36 billion and $38 billion. Gross margin is expected to be between 37% and 38%, while operating expenses are expected between $4.4 billion and $4.5 billion.

Apple said on the call that $46 billion of the current $60 billion buyback has already been used and that $66 billion of the total $100 billion in buybacks and dividends has been used already. Cook added that Apple wants to make its stock more accessible to a larger number of investors and a reason for the split.

Apple executives did not mention any details in regards to the next iPhone on the call, but Cook said the key thing for Apple is to "stay focused on things we can do best, and do things at a really high level of quality that our customers have come to expect." Cook added that the company cares about "every detail." "Apple delivered a strong sales and EPS print in 2Q:FY14, while the company's 3Q:FY14 sales outlook is inline with our projections but below the Street; however, this is good enough to satisfy investors, in our view," writes Cantor Fitzgerald analyst Brian White in a research note. Shares of Apple closed the regular session lower, falling 1.3% to close at $524.75. --Written by Chris Ciaccia and Laurie Kulikowski in New York >Contact by Email. Follow @Chris_Ciaccia

Stock quotes in this article: AAPL

Tuesday, April 22, 2014

12 Ways to Save Money by Going Green

Happy Earth Day. This global event celebrated on April 22 aims to raise awareness about environmental issues. So how are you going green to help protect the planet?

SEE ALSO: 14 Most Fuel-Efficient New Cars

There actually are several steps you can take to improve the environment while improving your personal finances. That's right – you can save money by reducing your energy consumption and water use, limiting greenhouse gas emissions and keeping more waste out of landfills. Here's how:

Plant trees. Strategic planting of trees can reduce an unshaded home's air conditioning costs 15% to 50%, according to the U.S. Department of Energy, which has tips on landscaping for shade. Utility companies offer customers free trees throughout the year to help reduce energy use through strategic planting, so check with yours to see if it offers such a program. Some local governments give away trees as part of Arbor Day celebrations. National Arbor Day is the last Friday in April, but many states observe it on different days. Check your local government's Web site to find out if it is giving away trees as part of an Arbor Day celebration. For $10, you can join the Arbor Day Foundation and get ten free trees. Plus, your membership entitles you to a 33% discount on trees when you buy online from the foundation.

Bike to work. By leaving your car at home two days a week, you can reduce your greenhouse gas emissions by more than 3,000 pounds a year, according to the U.S. Environmental Protection Agency. Plus, you'll save money on gas and parking if you bike rather than drive to work. For example, you'll save about $7 a day by biking rather than driving if you have a 15-mile round-trip commute. Use our How Much Can I Save Biking to Work? Tool to see what the financial benefits are for you. If biking isn't an option, you still can drive less by organizing a carpool, using public transportation or walking.

Install a programmable thermostat. You can save an estimated 10% a year on heating and cooling costs by installing a programmable thermostat, according to the Energy Department. Save energy in the winter by setting the thermostat (which costs as little as $20) to 68 degrees while you're awake and programming it for a lower temperature while you're asleep or away from home. Set it for 78 degrees in the summer, and increase the temperature when you're not home. You can shave 1% off your bill for each degree you decrease the temperature in the winter or increase it in the summer. And, no, you won't have to use more energy to warm or cool your house off when you get home. That's a common misconception, according to the Energy Department.

Eat less meat. The meat industry generates about one-fifth of the world's man-made greenhouse gas emissions, according to estimates from the United Nations' Food and Agriculture Organization. So if your family skipped eating steak once a week, it would be the equivalent of taking your car off the road for nearly three months, according to the Earth Day Network. And you'd save money. For example, a sirloin steak costs twice as much per pound as chicken breasts and nearly five times as much as beans, according to the U.S. Bureau of Labor Statistics.

Switch your light bulbs. You can save $70 a year on your energy bill by replacing the light bulbs in five of your most frequently used fixtures with Energy Star qualified LED or CFL bulbs, according to the EPA. These bulbs use 75% less energy than traditional incandescent bulbs and last ten to 25 times longer.

Install water-efficient fixtures. You can save money on your water bill by installing water-efficient faucets, showerheads and toilets. Look for products with the WaterSense label, which means they are certified to be at least 20% more efficient without sacrificing performance. For example, WaterSense-labeled toilets can save a family of four more than $90 annually on their water bill and $2,000 over the toilet's lifetime, according to the EPA. Considering you can get a toilet with the WaterSense label for as little as $98, it will pay for itself in about a year. Estimate your savings with this simple calculator.

Recycle electronics. Americans discard more than 2 million tons of obsolete electronic products annually, according to the EPA. Rather than fill the dump with your unwanted gadgets, fill your wallet by selling them for cash. Sites such as BuyMyTronics.com, Gazelle, NextWorth and uSell pay cash -- and cover the cost of shipping -- for electronics such as smart phones, tablets, computers and more. The type of electronics you can sell varies by site, as does the amount you can receive. If none of the sites will accept your unwanted electronics, you may be able to recycle or donate them. See the EPA's eCycling list for responsible electronics recyclers.

Compost. Americans spend $5.25 billion on fertilizers for their lawns, according to the EPA. Yet, you can get fertilizer for free by composting leaves, grass clippings, vegetable scraps and other organic waste. Plus, composting can divert as much as 30% of household waste from the garbage can, according to Eartheasy. See the Eartheasy guide to composting to learn more.

Use rain barrels. You may be able to cut your water costs a little by installing rain barrels at downspouts to collect water. You can attach a hose to the barrels to water your lawn and garden. Some water departments offer free rain barrels, so check with yours to see if it does. If not, you can find rain barrels at home and garden centers and online (about $100 for a 50-gallon barrel). Or you can make your own using a large plastic trash can or metal drum for a fraction of the cost.

Opt for a reusable water bottle. You're doing your health a favor by drinking water rather than soda. But if you're buying bottled water, you're not doing your wallet or the environment a favor. According to the most recent statistics from the International Bottle Water Association, Americans spent $11.8 billion on bottled water in 2012. Considering that the average cost per bottle is $1.45 and the average consumer buys 167 bottles a year, you'll spend more than $240 a year on bottled water at that rate. For the cost of just a few disposable bottles of water you can buy a reusable bottle that you can fill and carry with you wherever you go.

Buy a power strip. Energy vampires – electronics that draw power even when they're not in use – cost Americans almost $10 billion a year, and account for almost 11% of all U.S. energy use, according to the EPA. If you want to avoid unplugging all of your electronics when they're not in use, you can buy an inexpensive power strip that several things can be plugged into and turned off with the flip of a switch. The Smart Strip Power Strip ($25 and up) will automatically shut off computer peripherals, such as printers and scanners, when not in use. And the Belkin Conserve Smart AV ($29.99) automatically shuts off components, such as a gaming console, receiver and speakers, when you turn off your TV.

Line dry clothes. Clothes dryers can be one of the most expensive home appliances to operate, accounting for approximately 6% of a home's total electricity usage, according to the California Energy Commission's Consumer Energy Center. Because all dryers use about the same amount of energy, the best way to save money -- and benefit the environment -- is to line dry your clothes whenever you can.

Monday, April 21, 2014

Caterpillar's CEO compensation cut 32% to $12M

DALLAS (AP) — Caterpillar cut the value of its CEO's pay package by 32% to $12 million in 2013, a year when the heavy machinery maker saw its profits fall by a third, according to an Associated Press analysis.

Chairman and CEO Douglas Oberhelman got a small raise in salary last year, but the more important parts of his compensation — cash incentives and stock options — fell.

The AP analysis of Oberhelman's compensation considered salary, bonus, perks and the estimated value of stock and option grants that the company reported Monday to the U.S. Securities and Exchange Commission. The calculation excluded changes in the present value of the CEO's pension benefits, which makes the total differ from the one that Caterpillar reported in a summary table of Monday's filing.

Oberhelman's salary rose 2% to $1.6 million. However, his cash incentive payment fell by more than half, to $2.24 million from $5.05 million in 2012 based partly on the company's 2013 performance and partly on 2011-2013 numbers. The value of his stock options on the day they were granted dropped to $7.97 million from $10.78 million in 2012.

Miscellaneous "other compensation" dropped to $217,299 from $345,580, mostly because spending on an outside security vendor at Oberhelman's home dropped to $4,926 from $94,397 in 2012 and $20,754 in 2011. Spokeswoman Rachel Potts said the 2012 spending was due to installation of a security system and the 2013 security spending went for monitoring the system.

In explaining Oberhelman's compensation, Caterpillar said in the filing that revenue and earnings targets for 2013 "were not met." But it gave him good grades for controlling costs, improving the balance sheet, buying back $2 billion in company shares, and increasing the dividend.

The company last reduced the CEO's compensation in 2009, Potts said.

The Peoria, Ill.-based company was hit hard last year by a downturn in heavy equipment used in mining. Profit tumbled 33% to $3.79 billion — a decline of ! nearly $2 billion — and earnings per share dropped to $5.75 from $8.48 in 2012. Revenue fell 16% to $55.66 billion.

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But thanks to the share buybacks and a December rally in the stock, Caterpillar shares ended 2013 up 1% for the year.

The company ended the year with 118,501 employees, a reduction of 6,840 jobs or 5.5 percent of the workforce. More than half the company's employees work outside the United States.

Sunday, April 20, 2014

The Powerful Chart Peter Lynch Used To Earn 29% A Year

In his excellent book "One Up on Wall Street," Peter Lynch, the best mutual fund manager ever, revealed a powerful charting tool that helped him achieve an annual gain of 29.2% in his portfolios for 13 years.

In this chart, Peter Lynch drew a company's stock price and earnings per share together and aligned the value of $1 in earnings per share to $15 in stock price. He wrote in pages 164-165 of the book:

"A quick way to tell if a stock is overpriced is to compare the price line to the earnings line. If you bought familiar growth companies -- such as Shoney's, The Limited, or Marriott -- when the stock price fell well below the earnings line, and sold them when the stock price rose dramatically above it, the chances are you'd do pretty well."

To see how this Peter Lynch Chart works, we applied it to the top holdings of Warren Buffett, the most successful investor ever: Wells Fargo (NYSE: WFC), Coca-Cola (NYSE: KO), IBM (NYSE: IBM), American Express (NYSE: AXP) and Wal-Mart (NYSE: WMT).

The Peter Lynch chart of Wells Fargo is below, where the green line is the Price Line, and the blue line is the Peter Lynch Earnings Line. When the Price Line is well below the Peter Lynch Earnings Line, the stock is a buy.

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Among these top five holdings of Warren Buffett, we found that Wells Fargo is the most undervalued. Wal-Mart and IBM are about fair-valued. We then compared this result with the trading activities of Warren Buffett. To our surprise, we found that Warren Buffett was buying Wells Fargo heavily and adding to Wal-Mart and IBM.

Is this just a coincidence? Does Warren Buffett only buy the stocks that are undervalued as measured by the Peter Lynch Chart? Is Warren Buffett using this powerful tool, too?

We don't know the answer to that question. But we know that great minds think alike!

Now this powerful charting tool is available at GuruFocus.com. You can create it in just two clicks for any of the more than 50,000 stocks covered by GuruFocus.com.

We applied this tool to the portfolios of George Soros, Carl Icahn and other investment Gurus tracked at GuruFocus.com. We even developed a screen for this strategy that makes it easy to find stocks that are traded well below Peter Lynch's Earnings Line.

Certainly, buying stocks that are traded well below their Earnings Line is not the only criterion Peter Lynch used to achieve his 29%-a-year results. We also added his other requirements, such as a strong balance sheet and solid growth, into the screener.

When I limit my Peter Lynch screen to only the stocks that are owned by Warren Buffett, I found eight companies that Warren Buffett owns and Peter Lynch would be buying. All of these eight companies have strong balance sheets, solid growth and reasonable valuations. One of them is of course Wells Fargo. Warren Buffett loves it so much that he made it his largest holding.

Now both Warren Buffett and Peter Lynch are working for me! I have added these stocks to my watch list.

[Note: If you'd like to learn more about this Peter Lynch + Warren Buffett screener, the Peter Lynch Chart and other powerful valuation tools on GuruFocus.com -- visit this link.]

Saturday, April 19, 2014

Google's Moving On Up With the Next Nexus 7

Google's (NASDAQ: GOOG ) Nexus 7 has been an unqualified success. After seeing Amazon.com (NASDAQ: AMZN ) bank on its $199 Kindle Fire in 2011, the search giant jumped right in at the same price point with the Nexus 7 last summer. The Nexus 7 helped manufacturer ASUS outship Amazon in the first quarter, even after Amazon responded with second-generation Kindle Fire HD models.

Even Apple (NASDAQ: AAPL ) has now entered the small-sized tablet market with the iPad Mini, acknowledging the growing consumer preference toward smaller form factors (and lower price points). Google I/O is now in the rearview mirror, and many investors were expecting Big G to unveil a second-generation Nexus 7 at the developer conference, to no avail.

DIGITIMES now reports that Google is about to move up with the next Nexus 7, pricing the device at $229 for a 16 GB model. That modest price increase would distance the device from entry-level models and put it more in the mid-range ($199 to $249), while Apple sits at the high end with $329.

The low-end tablet market continues to head lower, after Amazon reduced the price of its first-generation Kindle Fire to just $159 and Hewlett-Packard now sells its Slate 7 for $170. ASUS also targets the sub-$159 market with its own branded tablets, along with other OEMs like Acer.

By most measures, the current Nexus 7 trumps the Kindle Fire HD. Both devices have similar hardware but the Nexus 7 runs a full-featured stock Android with a much larger app ecosystem. In that sense, Google may be able to convey a higher value proposition than Amazon, especially since the Kindle Fire doesn't include popular Google services like Maps.

Over the next six months, investors can expect Google, Amazon, and Apple to all update their small-sized tablet offerings. Pricing slightly higher would help ASUS preserve margins, while Amazon will assuredly maintain its characteristic loss-leader strategy. Apple may be able to pack in a Retina Display in the upcoming iPad Minis, cementing its status as the premium device.

The real question now: Where will Microsoft price when it shrinks its Surface?

As one of the most dominant Internet companies ever, Google has made a habit of driving strong returns for its shareholders. However, like many other web companies, it's also struggling to adapt to an increasingly mobile world. Despite gaining an enviable lead with its Android operating system, the market isn't sold. That's why it's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.

Thursday, April 17, 2014

Yahoo's de Castro got $58M for 15 months on job

Henrique de Castro's 15 months as Yahoo's chief operating officer may have ended on a sour note, but it was sweetened by a severance package valued at nearly $58 million.

All but about $1 million of de Castro's severance was based in the value of his equity award in Yahoo, which began appreciating after former Google colleague Marissa Mayer joined the company in July 2012. He became Mayer's first big hire just four months later. But in a letter to employees following de Castro's Jan. 16 ouster, Mayer said she "made the difficult decision" that he should leave.

His exit package outpaced Mayer's 2013 compensation, valued at $24.9 million. She gained an additional $21.2 million from vested shares, Yahoo said in a preliminary proxy filing Wednesday.

De Castro, a top Google sales exec, was hired to revive Yahoo advertising. His high-priced, short-lived tenure has already come under fire.

Last month, shareholders filed suit against Yahoo directors and de Castro, alleging that the board wasted corporate assets and breached its fiduciary duty by failing to understand how much compensation de Castro was entitled to. The company says in its preliminary proxy that it will file a motion to dismiss the case.

In defense of de Castro's hiring and sign-on package, Yahoo said in Wednesday's filing that its board believed he "had a unique set of highly valuable skills and experiences that would be key to returning the company to long-term growth as success."

The sharp 2012-2013 gain in Yahoo share price boosted the value of de Castro's Yahoo stake from $17 million to $58 million, the company said. Much of Yahoo's gains have come on the soaring value of its 24% stake in Alibaba, which is planning an initial public stock offering that could value the Chinese e-commerce giant at $200 billion.

Yahoo earlier said de Castro's job offer had costs with "significant compensation value" to offset potential compensation he forfeited when he left Google. His exit package from Yahoo ! included "negotiated protection'' in the event he was terminated by Yahoo. His sign-on packaged included a "make-whole" package then valued at $20 million.

Follow Strauss on twitter @gbstrauss.

Wednesday, April 16, 2014

U.S. Adds 135,000 Jobs for May

Nonfarm private employment increased by a seasonally adjusted 135,000 jobs for May, according to ADP's National Employment Report (link opens in PDF) released today.

Human capital management company ADP partners with Moody's Analytics to produce this monthly report based on ADP payroll data representing 416,000 U.S. clients employing nearly 24 million workers in the U.S.

After improving a revised 113,000 for April, analysts had expected May's numbers to head an adjusted 171,000 jobs higher.

Source: ADP.

Small businesses (1-49 workers) made the most moves for May, adding 58,000 new employees to their ranks. Both medium (50-499) and large (500+) companies added 39,000 jobs each.

The services sector added on 138,000 jobs, whiles goods-producing companies dropped 3,000. Manufacturing felt a 6,000-job squeeze.

According to Moody's Analytics Chief Economist Mark Zandi, Uncle Sam may be slowing things down:

The job market continues to expand, but growth has slowed since the beginning of the year. The slowdown is evident across all industries and all but the largest companies. Manufacturers are reducing payrolls. The softer job market this spring is largely due to significant fiscal drag from tax increases and government spending cuts.

link

Tuesday, April 15, 2014

Coca-Cola Profits Slips Even as Consumers Sip More Drinks

Top Services Companies To Invest In Right Now

Coca-Cola Profits Even as Consumers Buy More Drinks Daniel Acker/Bloomberg via Getty Images NEW YORK -- Coca-Cola's first-quarter profit fell nearly 8 percent as the world's biggest beverage maker faced a stronger dollar and sold less soda. But the company sold more of its noncarbonated drinks worldwide, and its earnings matched expectations. The Atlanta-based company says global sales volume rose 2 percent. In its flagship North American market, soda volume slipped 1 percent as the company raised prices. Coca-Cola (KO), which also makes drinks including Sprite, Powerade and Dasani, has been under pressure to deliver stronger results, particularly back at home where Americans have been cutting back on soda for years. The company isn't alone in its struggles to boost soda sales. PepsiCo (PEP), which reports its earnings Thursday, has seen even steeper declines in its soda business despite stepped-up marketing, including sponsorship of the Super Bowl halftime show. Both companies sell a wide array of beverages, including sports drinks, bottled water and orange juice. But sodas remain a big part of their businesses, and they're scrambling to figure out ways to stop the declines. "Look, we have Coca-Cola, and we have another 500 brands. The key is to offer a wide variety of choices," CEO Muhtar Kent said in an interview on CNBC regarding the concerns about soda. To boost sales, the company plans slash costs and put the savings into marketing in the year ahead. It also introduced a version of its namesake soda sweetened with a mix of stevia and sugar in Argentina, with plans to eventually introduce the drink elsewhere. For the quarter ended March 28, net income fell to $1.62 billion, or 36 cents a share. That compares with net income of $1.77 billion, or 39 cents a share a year ago. Excluding one-time items, net income totaled 44 cents a share, matching analyst expectations. Revenue fell 4 percent to $10.58 billion. Analysts expected $10.5 billion. Companies like Coca-Cola that do a large portion of their business overseas take a hit to revenue when the dollar is strong, because foreign currencies convert back into fewer dollars. Why is the battle between Coke and Pepsi -- two ultimately similar types of sugar water -- the most important struggle in the history of capitalism? Simply put, their rivalry transcends time, distance, and culture. It has divided restaurants, presidents, and nations. It has been waged in supermarkets, stadiums, and courtrooms. Its many foot soldiers include Santa Claus, Cindy Crawford, Michael Jackson, Max Headroom, Bill Gates, and Bill Cosby. In 1886 an Atlanta chemist introduced Coca-Cola, a tasty "potion for mental and physical disorders." Pepsi-Cola followed seven years later, though it would be decades (and two bankruptcies) before Coke acknowledged the company in the way it had other competitive threats: lawsuits. Pepsi-Cola had made hay during the Depression. Like Coke, the drink cost a nickel, but it came in a 12-ounce bottle nearly twice the size of Coke's dainty, wasp-waisted one. But by the 1950s, Pepsi was still a distant No. 2. It nabbed Alfred Steele, a former Coke adman, who arrived embittered and ambitious. His motto: "Beat Coke." Coca-Cola refused to call Pepsi by name -- the drink was "the Imitator," "the Enemy," or, generously, "the Competition" -- but it began tinkering with its business (and imitating Pepsi) to stay ahead. In 1979, for the first time in the rivalry's history, Pepsi overtook Coke's sales in supermarkets. It didn't last, and by 1996, declared that the cola wars had ended. Since then Pepsi, with its increasing focus on health and snacks, has as good as surrendered. America's favorite two soft drinks? Coke and Diet Coke. Winner: Coke 1. Coke vs. Pepsi Ford, founded in 1903, and GM, which came along nine years later, have been warring for 101 years. The epitome of crosstown rivals -- their headquarters are just 11.5 miles apart -- they face off every day on dealer lots and in motor sports. Both maintain operations to scour the other's new products. In 2011, Ford marketing chief Jim Farley was quoted as having said, "I hate them and what they stand for." Meanwhile, GM chairman and CEO Dan Akerson recommended sprinkling holy water on ailing Ford luxury brand Lincoln. "It's over!"

Monday, April 14, 2014

International Business Machines Corp. Earnings: What to Expect Wednesday

On Wednesday, IBM (NYSE: IBM ) will release its quarterly report, and investors will be watching closely to see if the tech giant can finally get its sales moving higher after a long stretch of sluggishness. Although Cisco Systems (NASDAQ: CSCO ) has faced some of the same challenges as IBM, Oracle (NYSE: ORCL ) has found ways to find growth. IBM needs to work on getting its share of the growing cloud-computing and data-analytics pie in order to keep itself moving in the right direction.

IBM has a history of being ahead of the curve in technology, moving away from its historic hardware focus in a timely fashion before the bottom fell out of that market. Yet even as it has aimed to capture higher-margin services and provide value-added information for its customers, IBM nevertheless has had to deal with extensive competition from Cisco, Oracle, and other tech giants seeking to offer more integrated products. For its part, IBM needs to use its enterprise focus to its best advantage, reaching out to as many potential customers as possible. Let's take an early look at what's been happening with IBM over the past quarter and what we're likely to see in its report.

Source: Alfred Lui via Flickr.

Stats on IBM

Analyst EPS Estimate	$2.54
Change From Year-Ago EPS	(16%)
Revenue Estimate	$22.93 billion
Change From Year-Ago Revenue	(2.1%)
Earnings Beats in Past 4 Quarters	2

Source: Yahoo! Finance.

Source: IBM.

When will IBM earnings bounce back?
Analysts have slashed their views on IBM earnings in recent months, cutting their first-quarter estimates by more than 20% even as they hold out hope that revisions downward for the full 2014 year will only be minimal. The stock has held its own, rising 6% since early January.

IBM's fourth-quarter earnings report showed the recent disconnect between the company's revenue and earnings. A plunge in hardware sales sent IBM's overall revenue down 5% from the year-ago quarter, even as net income came in better than most had expected. As IBM moves away from poor-performing hardware toward higher-margin services, shareholders will likely see even more downward pressure on sales -- but if profit margins improve, the boost to the bottom line should be substantial.

IBM made a big move in that direction during the quarter, announcing in January that it would sell its x86 server business to Lenovo for $2.3 billion. IBM isn't giving up entirely on servers, with mainframes and servers using proprietary IBM processors still giving the company hardware with which it can compete against Oracle's Sun products and other rivals. But the move tracks with what Oracle and Cisco Systems have done in emphasizing IT services.

Meanwhile, IBM is also pushing forward with multiple initiatives. Its Smarter Planet project helps businesses and governments use available data to make projections on a wide range of issues, ranging from infrastructure to marketing. IBM also announced a partnership with a French automaker to collect information for analysis that IBM hopes will improve safety and perhaps lead to automated driving. Perhaps most exciting was its BlueMix service, on which it's collaborating with a well-known business services company to use location-based data to gather improved analytics.

In the IBM earnings report, watch to see how the company keeps moving forward on the cloud-computing and big-data fronts. Even if revenue continues to sag, it's important for IBM to reignite its earnings growth. Otherwise, its rivals might catch up and surpass the tech giant and make it difficult for IBM to recapture its leadership position.

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Click here to add IBM to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Sunday, April 13, 2014

3 Reasons to Buy Melco Crown

Melco Crown (NASDAQ: MPEL ) has been the big winner of expansion on the Cotai Strip and has two more resorts in the works. A project in the Philippines will open next year, and in 2016 Studio City on Macau will add to Melco's presence in the largest gaming region in the world. Kristen Coia sat down with gaming analyst Travis Hoium to get more insight into the exciting opportunities for Melco Crown.

Melco Crown is often a forgotten company in gaming, but it has tremendous upside from Studio City and its partnership in the Philippines, which could more than double the company's revenue base. This being a more speculative investment, is it worth the risk for smaller investors? The Motley Fool answers this question and more in our most in-depth Melco Crown research available for smart investors like you. Thousands have already claimed their own premium ticker coverage, and you can gain instant access to your own by clicking here now.

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Saturday, April 12, 2014

PG’s Streak Continues: 6 Dividend Stocks Increasing Payouts

Popular Posts: BAC Banks a Raise: 5 Dividend Stocks Raising Payouts Recent Posts: PG’s Streak Continues: 6 Dividend Stocks Increasing Payouts BAC Banks a Raise: 5 Dividend Stocks Raising Payouts HPQ Upgrades Its Yield: 5 Dividend Stocks Increasing Payouts View All Posts

Dividend investors are patiently waiting for Q1 earnings season to kick into high gear, as the season typically jump-starts another big round of dividend increases. For now, we’ll have to be happy with a slower count; the best news of the week is that we had several big-name dividend stocks come through for investors.

IncreasingDividends PG's Streak Continues: 6 Dividend Stocks Increasing Payouts The week's biggest dividend stock name was Procter & Gamble (PG), the worldwide consumer products company, which announced a nice increase for shareholders and kept a streak of 58 years of consecutive dividend raises going.

Here's a look at the new dividend payout for Procter & Gamble, as well as the improvements from other dividend stocks this week.

(Note: All dividend yields are as of April 11.)

Global financial services company Bank of New York Mellon (BK) raised its quarterly dividend 13% to 17 cents per share payable May 7 to shareholders of record May 23.
BK Dividend Yield: 2.05%

Adhesives and chemicals company H.B. Fuller (FUL ) raised its quarterly dividend 20% to 12 cents per share payable on May 8 to shareholders of record April 22.
FUL Dividend Yield: 1.05%

This week’s biggest increase came from applied solutions provider Idex (IEX), which raised its quarterly dividend 22% to 23 cents per share payable April 30 to shareholders of record April 16.
IEX Dividend Yield: 1.60%

Movie theater and hotel and resorts operator Marcus Corporation (MCS) raised its quarterly dividend 11.8% to 9.5 cents per share payable May 15 to shareholders of record April 23.
MCS Dividend Yield: 2.20%

Global consumer products giant Procter & Gamble (PG) raised its quarterly dividend 7% to 64.36 cents per share payable on or after May 15 to shareholders of record April 23.
PG Dividend Yield: 3.18%

Discount outlet shopping-center retailer Tanger (SKT) raised its quarterly dividend 6.7% to 24 cents per share payable on May 15 to shareholders of record April 28. The increase is the 21st consecutive dividend increase for SKT.
SKT Dividend Yield: 2.71%

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he did not hold a position in any of the aforementioned securities. For more dividend stocks increasing payouts, see previous weeks' lists of Companies Increasing Dividends.

Friday, April 11, 2014

Hot Gold Stocks To Buy For 2015

Opportunity Cost and Risk: The Parallel Stories of Carl Laemmle and Adolf Zukor

In this age of risk aversion, with Treasury Bills yielding one basis point and gold trading above $1100 per ounce, one might do well to be reminded of an age when the understanding of financial risk, such as it was, assumed a different aspect. The modern approach is to avoid risk by asset allocation, if possible, or by hedging, if necessary. The classic financial histories such as John Kenneth Galbraith's The Great Crash, Charles Kindleberger's Manias, Panics and Crashes, Edward Chancellor's Devil Take the Hindmost, or the seminal book by Charles Mackay entitled Extraordinary Popular Delusions and the Madness of Crowds have instructed a generation of financial professionals of the consequences of poor risk control. It is not the function of this paper to gainsay in any manner these marvelous books.

Nevertheless, there is such at thing as opportunity cost. Very little has been written upon the subject of the unwillingness to assume risk. The poet John Greenleaf Whittier once wrote that ��or all sad words of tongue or pen, the saddest are these, ��t might have been!�� It is for this reason that there follows a comparison of the careers of Carl Laemmle and Adolph Zukor. Both were founders of the American movie industry. Most financial analysts would agree that movie production is, even in the best circumstances, a rather high risk undertaking. Though he was the founder of Universal Pictures, Laemmle is entirely forgotten except by movie historians. Adolph Zukor might be known to students of business history as the founder of Paramount Pictures. A comparison of the approaches taken to risk and risk aversion by these two men is instructive. The ultimate thesis is that, in many cases, risk avoidance is actually a form of risk.

Hot Gold Stocks To Buy For 2015: First Majestic Silver Corp.(AG)

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

Advisors' Opinion:

[By Doug Ehrman]
It is no secret that precious metals companies have been taking a pounding for some time now. The SPDR Gold Trust (NYSEMKT: GLD ) and iShares Silver Trust (NYSEMKT: SLV ) , the gold and silver ETFs, have been hard hit and operating companies like First Majestic (NYSE: AG ) and Barrick Gold (NYSE: ABX ) have been hit even harder. Through all of these struggles, and in some cases because of them, one precious metals company continues to look attractive for the long term: Silver Wheaton (NYSE: SLW ) .
[By Doug Ehrman]
In terms of individual companies, there are several good choices, but these can behave very differently. Pan American Silver (NASDAQ: PAAS ) , for example, missed revenue expectations and beat earnings expectations in its last earnings release. But despite the beat, EPS shrank considerably from a year earlier on a GAAP basis. The stock has been fairly flat ever since. Conversely, First Majestic (NYSE: AG ) reported strong revenue growth and a small bump in profits, sending the stock higher since the announcement. First Majestic reported increased cash costs and tightening margins, largely driven by lower silver prices. Each of these companies faces pressure from increasing production costs and environmental concerns.

Hot Gold Stocks To Buy For 2015: Golden Star Resources Ltd(GSS)

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

Advisors' Opinion:

[By Rich Duprey]
Clash of the titans
When bears are raging on the gold bullion market, it's not surprising to see gold stocks getting mauled as well. Golden Star Resources (NYSEMKT: GSS ) was the biggest loser in the sector, losing a quarter of its market cap on no company-specific news, though a report last Friday indicated that a large number of hedge funds had recently dumped their positions in the mid-tier miner. Yet it wasn't all that much better among the majors, either, as Barrick Gold (NYSE: ABX ) fell almost 13% and Kinross Gold (NYSE: KGC ) was down 14%.
[By Patricio Kehoe] ating price of the commodity, along with the geopolitical risks involved in mining in African nations such as Ghana, are just two of the obstacles the firm is facing. In addition, as one of the smallest gold mining firms in the industry, with a market cap of just $122 million, Golden Star has had a very difficult time financing its latest expansion projects. With share prices tumbling towards all-time lows, gurus such as Steven Cohen, Chuck Royce and Arnold Schneider have already sold out their positions in the troubled firm.
Why Have Gurus Lost Faith in Golden Star?

Despite aggressive expansion over the past decade, the Toronto-based gold mining firm has not been able to take advantage of its increased production output. Gold prices might have exploded over a ten-year period, yet the recent six-month decline has put a huge strain on Golden Star. The expedited maturation of its mines is particularly troubling, since the accelerated extraction rates, which allowed for short-term profits, are now falling considerably. The impact of the company�� excessive overproduction on profits and growth is clear: decreasing gold reserves mean less production, and thus reduced revenue for the gold miner. When the decline in metal prices are taken into account, the outlook is even more grim.
In addition to overexpansion at the wrong time, Golden Star�� position has weakened due to its comparably less efficient operations. Unlike industry peers, such as IamGold Corp. (IAG) or Gold Fields Ltd. (GFI), the majority of the Toronto-based miner�� assets contain refractory ore, which is far more expensive to extract than non refractory ore. And, in an attempt to switch production to the lower cost gold ore, and thus increase margins, Golden Star has depleted its mines��non refractory ore. With low reserves and mounting cash costs, the firm inevitably turned to new acquisitions.
Overpriced Acquisitions and Geopolitical Risk

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

Top 10 Medical Companies To Buy Right Now: CME Group Inc.(CME)

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

Advisors' Opinion:

[By Dan Caplinger]
Among exchanges, the action is beyond the stock market. With the rise in trading of futures, options, and other derivative investments, NYSE Euronext's ownership of the NYSE Liffe exchange in London was a key element of ICE's interest. CME Group (NASDAQ: CME ) and CBOE Holdings (NASDAQ: CBOE ) have worked hard to preserve their respective strength in futures and options, and rising market turbulence has made many of their products look a lot more enticing. Given that derivatives can help hedge market risk and reduce overall exposure, all of the exchange companies have an opportunity to bolster their presence in the derivatives market with innovative products that meet the new needs investors have in a more turbulent financial environment.
[By Sue Chang]
CME (CME) �is projected to report third-quarter earnings of 73 cents a share, according to a consensus survey by FactSet.

Hot Gold Stocks To Buy For 2015: Australian Dollar(AU)

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

Advisors' Opinion:

[By Jim Powell]
In addition to holding Goldcorp and Barrick Gold, the fund tracks the performance of Newmont Mining (NEM), Newcrest Mining (NCMGY), AngloGold Ashanti (AU), and several other industry leaders.
[By Daniel Putnam]
First, and most important, earnings estimates are stabilizing. In the past sixty days, 2013 estimates for the major gold miners have begun to tick up. In most cases, the increase is very modest. For instance, Goldcorp‘s (GG) EPS estimates have climbed from $0.91 to $0.95, while Barrick Gold‘s (ABX) have inched up from $2.57 to $2.64. Newmont Mining (NEM), Anglogold Ashanti (AU), and Gold Fields Ltd. (GFI) have shown similar gains. This positive rate of change marks a significant departure from the steady stream of bad news investors have had to endure in recent years.

Hot Gold Stocks To Buy For 2015: NEW GOLD INC.(NGD)

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

Advisors' Opinion:

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

Hot Gold Stocks To Buy For 2015: Iamgold Corporation(IAG)

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

Advisors' Opinion:

[By Dan Caplinger]
IAMGOLD (NYSE: IAG ) will release its quarterly report on Monday, and as with most gold mining companies, it's expected to post disappointing results compared to last year's figures because of the big drop in gold prices during the second quarter. Yet investors still expect IAMGOLD earnings to show the company's profitability, giving it a competitive advantage over weaker producers that are struggling to stay out of the red.
[By Namitha Jagadeesh]
HSBC Holdings Plc (HSBA), Europe�� largest bank, slid 2.1 percent. International Consolidated Airlines Group SA (IAG) declined 2 percent as it canceled some of its flights following a disruption caused by one of its planes at Heathrow airport. Next Plc (NXT) retreated 2.4 percent as Morgan Stanley cut its recommendation on the shares.
[By Aaron Levitt]
At just $6.50, AKS is still one of the cheap stocks, but it may not be cheap for long.
Cheap Stocks to Buy Now: Iamgold (IAG)
Without a doubt, the most hated metals and mining sector has to be gold mining stocks. Faced with rising costs and falling gold prices, many of the precious metals miners have tanked, moving them into the cheap stocks category.

Hot Gold Stocks To Buy For 2015: Goldcorp Incorporated(GG)

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

Advisors' Opinion:

[By Itinerant]
Recently pressure has mounted to update this cost reporting standard in order to improve transparent accounting for all costs associated with production. Or as Chuck Jeannes, CEO of Goldcorp (GG), puts it:

Hot Gold Stocks To Buy For 2015: Agnico-Eagle Mines Limited(AEM)

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

Advisors' Opinion:

[By Sally Jones]
The once-troubled Agnico Eagle Mines Ltd. (AEM) is hitting a new record for gold production in the third quarter at 315,828 ounces, according to the Financial Post, and the company�� executives are buying. Here�� a third quarter company update and a look at billionaire stakeholders of AEM, a stock that spiked 23.66% over the past five days.
[By Markus Aarnio]
Other gold miners that have seen intensive insider buying during the past four months include St. Andrew Goldfields (STADF.PK), Continental Gold (CGOOF.PK), Kinross (KGC) and Agnico-Eagle Mines (AEM).