Saturday, May 31, 2014

Top 10 Mid Cap Stocks To Buy Right Now

Top 10 Mid Cap Stocks To Buy Right Now: Just Energy Group Inc (JE)

Just Energy Group Inc. (Just Energy), formerly Just Energy Income Fund, is engaged in the sale of natural gas and/or electricity to residential and commercial customers under long-term, fixed-price, price-protected or variable-priced contracts and green energy products. It also offers green products through its JustGreen and JustClean programs. In addition, through National Home Services (NHS), it rents and sells tankless water heaters, air conditioners and furnaces to Ontario residents. Through its subsidiary, Hudson Energy Solar, the Company completes solar power installations for customers in New Jersey, Pennsylvania and Massachusetts.The Company also produces and sells wheat-based ethanol. The Company markets its gas and electricity contracts in Canada and the United States under trade names which include Just Energy, Hudson Energy, Commerce Energy, Amigo Energy and Tara Energy. On October 3, 2011, the Company acquired Fulcrum Retail Holdings LLC. Advisors' Opinion:
  • [By Jake L'Ecuyer]

    Just Energy Group (NYSE: JE) shares tumbled 12.60 percent to $6.31 on Q1 results. Just Energy reported its Q1 earnings of $1.06 per share on revenue of $3.61 billion.

  • source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-10-mid-cap-stocks-to-buy-right-now-2.html

Top 10 New Stocks To Own For 2015

Top 10 New Stocks To Own For 2015: Enertopia Corp (ENRT)

Enertopia Corp (Enertopia), incorporated on November 24, 2004, is engaged in medicinal marijuana business. The Company is diverse in its pursuit of business opportunities in several sectors, including: Medicinal Marijuana, Oil and Gas, Solar PV (Photovoltaic), Solar Thermal (Hot Water), Energy Retrofits and Recovery, and Solar powered Filtered Drinking Water.

The Company no longer has any material oil and gas resources. The Company operates in two segments: renewable energy, and mining exploration and developments, which are managed separately based on fundamental differences in their operations nature.

Advisors' Opinion:
  • [By Peter Graham]

    Whats the Catch With Lexaria Corp? According to various disclosures, a transaction or transactions of $1k has or will occur to mention Lexaria Corp in various investment newsletters. Last Friday, Lexaria Corp announced it had closed its Private Placement financing announced on March 5 for gross proceeds of $1,272,000 higher than the originally announced $960,000 figure due to overwhelming demand. Lexaria Corp will issue 10,600,000 common shares at US$0.12 and 10,600,000 full warrants that expire on September 21, 2016 with an exercise price of US$0.25. However, the company may also accelerate the expiry date of the warrants if the stock price trades above CAD$0.40 cents for 20 consecutive days at any time after 6 months and one day has elapsed. Otherwise and in early March, Lexaria Corp reported that its board of directors had decided to make a strategic entry into the medical marijuana business by way of an important Joint Venture with Enertop ia Corp (OTCQB: ENRT). Under the terms of the Agreement, Lexaria Corp had agreed to pay Enertopia 1 million restricted common shares in return for Enertopia's participation plus 500,000 restricted common shares ENRTs Chairman in return for his participation on the Lexaria Advisory Board. Following! the issuance of these shares, Lexaria Corp will have a total of 18,431,452 shares issued and outstanding and 21,256,452 shares fully diluted. A quick look at Lexaria Corps financials reveals revenues of $160k (most recent reported quarter), $241k, $251k and $253k for the past four quarters along with net losses of $102k (most recent reported quarter), $126k, $58k and $48k. At the end of last January, Lexaria Corp had $66k in cash to cover $1,415k in current liabilities and $59k in other liabilities. So aside from the income statement, investors might want to look more closely at Lexaria Corps financing terms.

  • source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-10-new-stocks-to-own-for-2015.html

Friday, May 30, 2014

Google Moves To Comply on 'Right To Be Forgotten' Ruling

Google moves to comply on 'right to be forgotten' ruling Philippe Huguen, AFP/Getty Images Technology giant Google (GOOG) launched an online form Friday giving European users a chance to get personal information about themselves removed from search results. The move follows a ruling earlier in May by the Luxembourg-based European Union Court of Justice. This came after a Spanish man complained to the Spanish data protection agency that an auction notice of his repossessed home on Google's search results infringed his privacy. Google originally argued that forcing it to remove such data amounts to censorship, but the new form will be its first attempt at complying with the ruling. On the online form, Google states that certain users can ask for the removal of search results that include their name where those results are "inadequate, irrelevant or no longer relevant, or excessive in relation to the purposes for which they were processed." The company added that it would assess each individual request and attempt to balance the privacy rights of the individual with the public's right to know and distribute information. "When evaluating your request, we will look at whether the results include outdated information about you, as well as whether there's a public interest in the information -- for example, information about financial scams, professional malpractice, criminal convictions or public conduct of government officials," it said in the press release accompanying the new form. Users will need to include a copy of a valid form of photographic identification as well as a name and email address. They will also have to provide a link to the page that they wish to be removed from the search results, explain why it is about them and describe why it is "irrelevant, outdated or otherwise inappropriate." Google added that this new form is just the first step on the road to compliance and is working to finalize its implementation of removal requests under European data protection law as soon as possible.

Thursday, May 29, 2014

Top 10 Food Stocks To Watch For 2015

Top 10 Food Stocks To Watch For 2015: Boulder Brands Inc (BDBD)

Boulder Brands, Inc., incorporated on May 31, 2005, is a supplier of gluten-free and health and wellness products in the United States and Canada. The Company distributes its products in all retail channels, including natural, grocery, club and mass merchandise. The Company also has a presence in the foodservice and industrial channels. The Companys product portfolio consists of spreads, milk and other grocery products marketed under the Smart Balance, Earth Balance and Bestlife brands, and gluten-free products sold under the Udi's, Glutino and Gluten-Free Pantry brands. The Company operates in two segments: Smart Balance and Natural. The Smart Balance segment consists of its branded products in spreads, butter, grocery and milk. The Natural segment consists of its Earth Balance, Glutino and Udi's branded products. In December 2013, the Company announced that it has acquired 100% interests of Phil's Fresh Foods, LLC, owner of EVOL Foods (EVOL).

Smart Balanc e Products

The Smart Balance line of products is available in a range of categories, formats and sizes in the supermarket, mass merchandise and convenience store channels of distribution. Some of the Companys buttery spreads are also available in bulk and individual serving formats for use in the industrial and foodservice channels. The Companys Smart Balance buttery spreads are made from a patented blend of natural oils to help balance fats in the consumer's diet and to help improve the good-to-bad cholesterol ratio when used as part of the Smart Balance Food Plan. Smart Balance Spreadable Butters, available in original, light and extra virgin olive oil varieties, are a blend of creamery fresh butter and canola oil that contain less saturated fat than butter, as well as functional ingredients like EPA/DHA Omega-3 and plant sterols.

The Company offers a range of enhanced milk products, with different varieties containing EPA/DHA Omega-3! s, plan t sterols, and added levels of calcium and protein. The Comp! any use low and fat-free milks enhanced with non-fat milk solids to give the taste and texture of whole or reduced fat milk. The Companys milk varieties include fat-free milk, 1% lowfat milk and lactose-free milk and are available in markets across the United States. The Companys peanut butter products contain ALA Omega-3 from flax oil. The Companys cooking oil and cooking sprays are designed for use in cooking, baking and salads to aid in avoiding trans fat and hydrogenated oils. The Company also markets a Smart Balance Buttery Burst Spray. The spray has zero calories, zero carbs and zero fats per serving and can be used as a pan spray or as a topping.

The Companys Smart Balance Light Mayonnaise Dressing has half the fat of regular mayonnaise, is non-hydrogenated, contains zero grams of trans fat and contains natural plant sterols and ALA Omega-3. The Company created the Smart Balance Food Plan, incorporating many of its Smart Balance products, in o rder to help consumers achieve a healthy balance of natural fats in their daily diet. The plan includes menus, as well as numerous recipes.

Natural

The Earth Balance line of products offers a range of buttery spreads, sticks, soymilks, nut butters and vegan mayo dressings formulated for consumers interested in natural, plant based and organic products. Glutino offers a range of shelf stable and frozen gluten-free products, including snack foods, frozen baked goods, frozen entrees and baking mixes, throughout the United States and Canada. Glutino also offers a range of fresh breads under the Genius brand name. Based in Denver, Colorado, Udi's markets gluten-free products under the Udi's Gluten Free Foods brand in the retail market. The Company owns and operates a health and wellness, subscripton-based Website at www.thebestlife.com, which is based on the philosophies of Bob Greene.

The Company ! competes ! with Unilever, ConAgra Foods, Dean Foods, Land O' Lakes, Hain Celestial Group, Inc., Food for L! ife, Van'! s, Nature's Path, Mary's Gone Crackers, Enjoy Life, Pamela's Gluten Free, Rudi's Gluten-Free, French Meadow Bakery, Schar, Kinnikinnick, Amy's Gluten Free, Snyder's, Blue Diamond Gluten-Free, Bob's Red Mill Gluten-Free and Food Should Taste Good.

Advisors' Opinion:
  • [By John Udovich]

    However and not helping the stock around that time was a verylengthy article by thePrescience Point Research Group on Seeking Alpha entitled: Fleetmatics Group PLC: Accounting Shenanigans Are Inflating Its Financials, While Insiders Sell Aggressively. Investors and shorts alike can read the article and make their own judgment, but some of the commenters have pointed out that similar attack articles from Prescience Point Research Group on stocks like the Active Network Inc (NYSE: ACTV) and Boulder Brands Inc (NASDAQ: BDBD) have backfired on the shorts. With that said, the article does highlight some of the risks investors face with the stock.

  • source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-10-food-stocks-to-watch-for-2015.html

Wednesday, May 28, 2014

Top 5 Life Sciences Companies To Own In Right Now

Top 5 Life Sciences Companies To Own In Right Now: Celestica Inc (CLS)

Celestica Inc. (Celestica), incorporated on September 27, 1996, is a provider of supply chain solutions globally to original equipment manufacturers (OEMs) and service providers in the communications, consumer, computing and diversified end markets. The Company has operating network in Americas, Asia and Europe. The products and services it provides serve a range of end products, including smartphones; servers; networking, wireless and telecommunications equipment; storage devices; aerospace and defense electronics, such as in-flight entertainment and guidance systems; healthcare products; audiovisual equipment; printer supplies; peripherals; semiconductor capital equipment, and a range of industrial and green technology electronic equipment, including solar panels and inverters. In June 2011, Celestica acquired the semiconductor equipment contract manufacturing operations of Brooks Automation, Inc. In September 2012, the Company acquired D&H Manufacturing Company. D&H is a manufacturer of precision machined components and assemblies, primarily for the semiconductor capital equipment market.

Celestica offers a range of services, including design, manufacturing, engineering, order fulfillment, logistics and after-market services. The Company uses enterprise resource planning and supply chain management systems to optimize materials management from suppliers through to its customers.

Its global design services and solutions architects are focused on opportunities that span the entire product lifecycle. It also leverages its CoreSim Technology to minimize design revisions. It has developed its Green Services to help its customers comply with environmental legislation, such as those relating to the removal of hazardous substances and waste management/recycling. Its services help the customers design, prototype, introduce, manufacture, test, ship, takeback, repair, refurbish, reuse, recycle and prop! erly dispose of end-of- life (EOL) products. Prototyping is a critical early-stage p! rocess in the development of new products. It uses technologies in the assembly and testing of the products. Its failure analysis capabilities concentrate on identifying the root cause of product failures and determining corrective actions. It has a management system that focuses on continual process improvement.

The Company competes with Benchmark Electronics, Inc., Flextronics International Ltd., Hon Hai Precision Industry Co., Ltd., Jabil Circuit, Inc., Plexus Corp. and Sanmina-SCI Corporation.

Advisors' Opinion:
  • [By Seth Jayson]

    Celestica (NYSE: CLS  ) reported earnings on April 23. Here are the numbers you need to know.

    The 10-second takeaway
    For the quarter ended March 31 (Q1), Celestica met expectations on revenues and beat expectations on earnings per share.

  • source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-5-life-sciences-companies-to-own-in-right-now.html

Tuesday, May 27, 2014

5 Best Industrial Conglomerate Stocks To Own Right Now

5 Best Industrial Conglomerate Stocks To Own Right Now: Siemens AG (SI)

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

Industry

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

Energy

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

Healthcare

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

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

Equity Investments

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

Financial Services

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

Infrastructure & Cities

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

Advisors' Opinion:
  • [By Ben Levisohn]

    Last night news broke that General Electric (GE) had made a formal bid for Alstom’s (ALSMY) thermal, renewable, and grid businesses. Of course, Siemens (SI) has a month to make a bid of its own, but General Electric is currently sitting right where it wants to be.

  • [By MONEY.CNN.COM]

    In January 2001, I bought the Siemens (SI) transmission product line and started doing manufacturing work. But then we had the dotcom bust and 9/11. A lot of my customers who sold long-distance merged, went bankrupt, or disappeared. I changed my business model several times, trying to diversify the business and customer base.

  • [By Dan Burrows]

    As for strategic positioning, STM is an enviable place. Major customers include Apple, General Electric (GE) and and Siemens (SI). It’s also moving into or already a leader in some hot new markets.

  • source from Top Stocks Blog:http://www.topstocksblog.com/5-best-industrial-conglomerate-stocks-to-own-right-now.html

Monday, May 26, 2014

Will Comcast Resume Its Uptrend?

With shares of Comcast (NASDAQ:CMCSA) trading around $41, is CMCSA an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework.

T = Trends for a Stock’s Movement

Comcast is a provider of entertainment, information, and communications products and services. The company operates in five segments: cable communications, cable networks, broadcast television, filmed entertainment, and theme parks. Comcast offers television, video, high-speed Internet, and voice services to residential and business customers. It also operates NBC and Telemundo broadcast networks; provides filmed entertainment under the Universal Pictures, Focus Features, and Illumination names; and operates theme parks, studios, and a dining, retail, and entertainment complex.

The company is able to reach and move large audiences through all of its outlets. As a multimedia giant, look for Comcast to provide and retain the products and services that consumers and companies love.

T = Technicals on the Stock Chart Are Mixed

Comcast stock has been trending higher over the past few quarters. The stock is now trading sideways as it digests gains from a recent bullish run. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Comcast is trading between its key averages, which signals neutral to bullish price action in the near term.

CMCSA

Source: Thinkorswim

Taking a look at the implied volatility and implied volatility skew levels of Comcast options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Comcast Options

22.94%

73%

72%

What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts as compared to the last 30 and 90 trading days.

Top 10 Japanese Companies To Watch In Right Now

Put IV Skew

Call IV Skew

September Options

Flat

Average

October Options

Flat

Average

As of Monday, there is average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.

E = Earnings Are Increasing Quarter Over Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Comcast’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Comcast look like and more importantly, how did the markets like these numbers?

2013 Q2

2013 Q1

2012 Q4

2012 Q3

Earnings Growth (Y-O-Y)

30.00%

20.00%

20.09%

136.40%

Revenue Growth (Y-O-Y)

6.96%

2.90%

5.95%

15.38%

Earnings Reaction

5.54%

1.35%

0.85%

3.30%

Comcast has seen increasing earnings and revenue figures over the last four quarters. From these numbers, the markets have been happy with Comcast’s recent earnings announcements.

P = Weak Relative Performance Versus Peers and Sector

How has Comcast stock done relative to its peers – Time Warner Cable (NYSE:TWC), DirecTV (NASDAQ:DTV), and Dish Network (NASDAQ:DISH) — and sector?

Comcast

Time Warner Cable

DirecTV

Dish Network

Sector

Year-to-Date Return

10.92%

11.48%

14.73%

24.09%

13.82%

Comcast has been a weak relative performer, year to date.

Conclusion

Comcast provides communications and entertainment products and services to consumers and companies. The stock has been moving higher over recent quarters but is now trading sideways as it digests recent gains. Over the past four quarters, earnings and revenues have been rising, which has led to happy investors in the company. Relative to its peers and sector, Comcast has been a weak year-to-date performer. WAIT AND SEE what Comcast does this coming quarter.

Saturday, May 24, 2014

Perdue's next frontier: organic

SALISBURY, Md. (AP) — While the labeling on some of the packages in the poultry section of your local supermarket might leave you wondering, there is probably one you can understand — organic.

Perdue, like most companies, is expanding its offerings to meet growing customer interests. Because of that, organic chicken is currently the chicken producer's biggest growth area.

"Words like 'organic' have meaning," said Jim Perdue, chairman of Perdue Farms, "because there are stringent regulations."

According to Perdue, organic chicken accounts for about 5% of the poultry the company sells today. It might not sound like much, but that makes Perdue the largest organic young chicken processor in the nation, according to Michael Sheats, director of the Agricultural Analytics Division at the United States Department of Agriculture. Perdue Farms has the ability to process more than 100,000 birds a day at its Milford, Delaware, plant.

As recently as 2011, though, the Salisbury-based company didn't even offer organic chicken. A few successful years of selling its Harvestland No-Antibiotics-Ever chicken, however, prompted the company to take the even bigger step toward organic.

Perdue explained that after a dozen years of research, in 2007, with the Harvestland brand, the company was able to offer consumers poultry that did not receive daily antibiotics. In the past, he said, chickens were administered growth-promoting antibiotics regularly.

Creating a way to raise chickens without the use of antibiotics, according to Joe Forsthoffer, director of corporate communications for Perdue, took some time.

"It's not just not using antibiotics," Forsthoffer explained. "It's developing a growing program where you create an environment where you don't need antibiotics."

Perdue Farms did that though, and with the release of the Harvestland brand, began offering No-Antibiotics-Ever chicken. That now accounts for 35% of the chicken the company sells.

"It's now nationwide, wit! h $200 million in sales," Perdue said. "It's done very well. That gave us a clue as to what the consumer is interested in."

The Harvestland brand success pushed Perdue Farms to purchase Coleman Natural, the country's largest producer of organic chicken, in 2011.

The organic chicken produced by Coleman Natural — much of it in Pennsylvania — is raised without antibiotics on a diet of organic corn- and soybean-based feed in an environment free of pesticides and herbicides. The birds look just like the chickens raised at the traditional chicken farms here on Delmarva but take a little longer to reach maturity.

"They're a little slower growing," Perdue explained.

The birds are kept in chicken houses but are given the freedom to move into outdoor enclosures and have access to "enhancements," such as roosts or hay bales, according to Perdue.

Because antibiotics aren't an option, growers have found other ways to ensure the birds stay healthy, according to Forsthoffer. He said natural remedies such as herbs — particularly oregano — and probiotics are used instead.

"It's more of a homeopathic approach," he said.

With the addition of Coleman Natural, Perdue Farms now offers three categories of chicken: organic, No-Antibiotics-Ever and chicken that was not treated with growth-promoting antibiotics. All of the birds are raised on an all-vegetarian feed that does not include animal byproducts such as blood and bone meal, according to Forsthoffer.

"We found it produced a better-tasting Perdue chicken," he said.

Although the organic and the No-Antibiotics-Ever chickens are the only birds verified to have been given no antibiotics, Forsthoffer said Perdue tries to limit as best it can the antibiotics all of the company's birds receive.

Human antibiotics are only used when a flock comes down with an illness, something that happens with about 5% of Perdue's chickens. Aside from that, Ionophores — used to prevent intestinal parasites — are the only ant! ibiotics ! the chickens are given, according to Forsthoffer.

Ionophores are classified by the Food and Drug Administration as an antibiotic and are therefore not given to Perdue's organic and No-Antibiotics-Ever flocks, Forsthoffer said. He added the parasite preventative is not used in human medications and is not associated with antibiotic resistant infections in humans.

While organic chicken only accounts for about 5% of Perdue's poultry sales, it's the fastest growing portion of the company's business.

"It's growing at 30% to 40%," Perdue said.

The increase in demand for organic chicken is being seen nationwide, according to Bill Roenigk, chief economist with the National Chicken Council.

"It is growing, and it's growing more quickly than the overall industry," Roenigk said, adding a strong indicator of that is the fact that large chain stores, particularly Wal-Mart, are pushing the product.

He said consumers are more willing to buy organic poultry now that the USDA is regulating it. Years ago, when organic chicken first began showing up on shelves, the USDA hadn't yet created standards for it, so shoppers had no federal guarantee that what they were buying was really organic.

The USDA began certifying poultry as organic in 2000.

"If they saw the USDA organic label, they were pretty sure of what they were getting," Roenigk said.

Perdue Farms is working to keep up with the increased interest.

"As long as it's growing, we want to continue to produce to that demand," Perdue said.

The company, however, cannot just begin turning all of its poultry farms into organic operations. According to Forsthoffer, getting a farm certified as organic is a lengthy process, as it has to go three years with no herbicides or pesticides before it can qualify.

Another drawback to producing organic chicken is the price. Perdue said the rules and regulations — such as the farm certification process — associated with growing organic birds made the cost to the c! ompany do! uble what it was for non-organic chicken. Even the feed for the birds costs twice as much as it does for a traditional chicken operation, as chicken certified as organic has to be fed organic corn grown from non-genetically modified seeds.

"When corn was $8 a bushel, organic corn was $16 a bushel," Perdue said. "The organic feed component is a limiting factor in growing the business."

The agribusiness division of Perdue Farms, however, is working to interest more farmers in growing organic corn and soybeans so grain procurement will be easier. In the meantime, the higher cost of producing organic poultry is passed on to the consumer. Much of the Coleman Natural poultry ends up in higher-end grocery stores.

"Because it's higher priced, it's going to be in areas where people are willing to pay," Perdue said.

According to Roenigk, organic chicken costs consumers two to three times as much as conventionally raised chicken does. The weak economy of recent years has limited the number of people able to afford it, which is why Roenigk believes the demand for products such as antibiotic-free chicken — which costs less than organic — has grown.

"A lot of consumers seem to find that a good compromise from a cost standpoint," he said.

Roenigk said the growth of the organic market will depend on the economy.

"It's going to depend on people's disposable income," he said, adding he feels the market for the slightly cheaper specialty products such as antibiotic-free chicken will continue to grow.

He called Perdue's move to offer organic, specialty and conventional chicken is smart strategy, adding, "What you want to do is give consumers options."

Both Roenigk and Perdue agree organic chicken is becoming more popular among consumers, as evidenced by the number of organic poultry products featured weekly by supermarkets.

Forsthoffer believes social media has helped with that. He said organic products are attractive to younger consumers who are active online! .

"! With the organic and the antibiotic-free, it's very much word of mouth," he said. "They're a community and they share ideas."

As Perdue Farms continues to produce organic chicken, its researchers, too, will be sharing ideas. Perdue said the move to organic is a learning process, and researchers are still busy studying its advantages.

"We want to be a learning organization," Perdue said. "There's a lot of work going on behind the scenes."

Friday, May 23, 2014

TDFs Most Popular Among Women, Young Investors

Target-date funds are proving most popular among women and younger retirement investors, according to MassMutual’s Retirement Services Division.

In the first quarter of this year, 28.4% of women’s retirement savings were in asset allocation accounts, compared with 27.7% of men’s retirement savings, MassMutual data showed.

Those allocations have jumped by 42% for women over the past five years, and increased 38% for men.

In addition, the data found that millennials, those between the ages of 20 and 37, are moving into target-date funds and other asset allocation strategies more than Generation Xers, those ages 36 to 48, baby boomers, those ages 49 to 68, or members of the Silent Generation, those ages 69 and older.

In the first quarter of 2014, 52.1% of the retirement savings for millennials were in asset allocation accounts, up 3.3% from the same period last year.

“We attribute the growth in popularity to more employers offering target-date funds to meet a growing demand,” said Elaine Sarsynski, executive vice president of MassMutual’s Retirement Services Division.

“American workers are opting for retirement savings strategies that are simpler to understand, easier to manage, and reflect their changing needs as they approach retirement.”

Indeed, investments in asset allocation accounts have soared by 39% since 2009, according to Sarsynski.

---

Check out As Clients Age, Stock Up on Stocks: Kitces on ThinkAdvisor.

Wednesday, May 21, 2014

Baron Funds Comments on Helmerich & Payne

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Shares of Helmerich & Payne, Inc. (HP), the leading land drilling contractor in the U.S., rose significantly in the first quarter. Over the past three years, Helmerich's market share has increased to 23% from 16%, while generating higher margins and returns than its main competitors. Its share price benefited from growing optimism that U.S. horizontal drilling activity will increase, spurring customer demand for new rigs. Helmerich also signed its biggest international contract in a decade in the first quarter. Helmerich is a best-in-class operator and remains a core position. (James Stone)

From Baron Funds' first quarter 2014 letter to shareholders.

Also check out: Ron Baron Undervalued Stocks Ron Baron Top Growth Companies Ron Baron High Yield stocks, and Stocks that Ron Baron keeps buying
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Tuesday, May 20, 2014

Home Depot 1Q results miss expectations

Home Depot reported Tuesday that sales and net income for the first quarter rose despite a slow start to the spring selling season following the severe winter weather.

The results came in short of expectations but the home improvement retailer said May sales were "robust" and raised its full-year earnings forecast.

Shares rose 1.9% to $77.96.

The company's sales rose 2.9% to $19.69 billion in the first quarter ending May 4, up from $19.12 billion a year ago. Analysts had expected $19.97 billion in sales, according to FactSet.

Sales at U.S. stores open at least a year increased 3.3%.

Home Depot earned $1.38 billion, or $1 per share, compared to $1.23 billion, or 83 cents per share, a year earlier.

Excluding a benefit from the sale of part of its equity ownership in HD Supply Holdings, earnings came in at 96 cents per share. Analysts expected 99 cents a share.

"The first quarter was impacted by a slow start to the spring selling season. But we had solid results in non-weather impacted markets and expect our sales for the year to grow in line with the guidance we previously provided," Home Depot CEO Frank Blake said in a statement.

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Home Depot raised its full-year earnings forecast to $4.42 per share. Its prior guidance was for earnings of $4.38 per share. The chain reaffirmed its outlook for 2014 revenue to rise by about 4.8%.

Contributing: The Associated Press

Monday, May 19, 2014

Week's Winners and Losers: Netflix Flies, Shutterfly Flubs

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www.shutterfly.com

From a struggling department store chain delivering better than expected financial results to a popular photo-printing services provider botched a mass mailing, here's a rundown of the week's smartest moves and biggest blunders in the business world. Keurig Green Mountain (GMCR) -- Winner Coca-Cola (KO) is apparently a coffee addict. The world's leading beverage company turned heads earlier this year when it paid $1.25 billion for a 10 percent stake in Keurig Green Mountain. This week it announced that it's bumping its stake to 16 percent, paying a much higher price for the new shares. Keurig Green Mountain is the company behind the country's most popular single-serve coffee maker. In a few months it plans to enter the carbonated beverage market with Keurig Cold. Coca-Cola is on board to provide soft drink flavors for the machine, and now the company has a greater stake in seeing that Keurig Cold is successful. Shutterfly (SFLY) -- Loser "There's nothing more amazing than bringing a new life into the world," begins a promotion that Shutterfly mailed out this week. "As a new parent you're going to find more to love, more to give and more to share -- we're here to help you every step of the way." Shutterfly intended for the mailing to go out to customers who had recently ordered birth announcements, reminding them that matching thank you cards are now in order for the family and friends who provided gifts for the new baby. The problem here is that the marketing email went out to a far wider base of Shutterfly registered users. Twitter and Facebook were alive with folks joking or complaining about the mishap. It was an amusing blunder for most recipients, but it's easy to see how this kind of missive could hit hard to others. Netflix (NFLX) -- Winner We're apparently a nation of Netflix addicts. Online trend watcher Sandvine (SVC) reports that the streaming video service accounted for 34.2 percent of the North America's peak downstream Internet traffic during the first half of the year. Chipotle Mexican Grill (CMG) -- Loser There may be a groundswell of support to pay employees at fast food chains more, but at least some hires at a popular quick-service chain may be making too much. There was a surprise at Chipotle's annual shareholder meeting on Thursday as just 23 percent of Chipotle's investors voiced approval for the chain's executive pay package. The "say on pay" vote doesn't carry the same kind of weight or meat as one of Chipotle's heavy burritos. The non-binding poll sends a clear message that investors don't want to see its co-CEOs combine to take home $49.5 million in compensation last year. J.C. Penney (JCP) -- Winner One of Friday's biggest winners was J.C. Penney, soaring after posting better than expected quarterly results. The struggling department store chain posted a smaller loss than expected, but the real gem in the report was that same-store sales rose 6.2 percent during the period. That's great, but let's be realistic. Comps fell 16.6 percent during last year's fiscal first quarter and plunged 20.1 percent the year before that. In other words, comparable-store sales may be positive, but we're actually eyeing a nearly 30 percent slide in comps since the fiscal first quarter of 2011. It's great to see the retailer take a step in the right direction, but it's still far away from where it used to be.

More from Rick Aristotle Munarriz
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Sunday, May 18, 2014

Why You Don't Want to Own IBM

IBM IBM just finished a tough week.  IBM fell 2% after an investor briefing on Wednesday, dragging the Dow Jones Industrial Average (DJIA or Dow) down over 100 points.  And as the Dow reversed course to end up 2% on the week, IBM continued to drag, ending down almost 3% for the week.

Of course, one bad week – even one bad earnings announcement – is no reason to dump a good company's stock.  The vicissitudes of short-term stock trading should not greatly influence long-term investors.  But in IBM's case, we now have 8 straight quarters of weaker revenues.  And that HAS to be disconcerting.  Managing earnings upward, such as the previous quarter, looks increasingly to be a short-term action, intended to overcome long-term revenue declines which portend much worse problems.

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IBM leadership appears to have lost its way

This revenue weakness roughly coincides with the tenure of CEO Virginia Rometty.  And in interviews she increasingly is defending her leadership, and promising that a revenue turnaround will soon be happening.  That it hasn't, despite a raft of substantial acquisitions, indicates that the revenue growth problems are a lot deeper than she indicates.

CEO Rometty uses high-brow language to describe the growth problem, calling herself a company steward who is thinking long-term.  But as the famous economist John Maynard Keynes pointed out in 1923, "in the long run we are all dead."

Today CEO Rometty takes great pride in the company's legacy, pointing out that "Planes don't fly, trains don't run, banks don't operate without much of what IBM does."  But, powerful as that legacy has been, in markets that move as fast as digital technology any company can be displaced very fast.

Just ask former CEO Scott McNealy and his leadership team at Sun Microsystems.  Sun once owned the telecom and enterprise markets for servers – before almost disappearing and being swallowed by Oracle Oracle in just 5 years (after losing $200B in market value.)  Or ask former CEO Steve Ballmer at Microsoft, who's delays at entering mobile have left the company struggling for relevancy as PC sales flounder and Windows 8 fails to recharge historical markets.

Managing earnings is not managing for long-term success

CEO Rometty may take pride in her positive earnings management.  But we all know that came from large divestitures of the China business, and selling the PC and server business to Lenovo.  As well as significant employee layoffs.  All of which had short-term earnings benefits at the expense of long-term revenue growth.  Literally $6B of revenues have been sold off just during her leadership.

Which in and of itself might be OK – if there was something to replace those lost sales.  Even if they didn't have any profits – because at least we have faith in Amazon creating future profits as revenues zoom. But IBM was far late to the cloud, and hasn't shown it has anything to leapfrog industry leaders.

The REAL problems – R&D cuts, higher debt, massive stock buybacks

What should terrify investors about IBM are two things that are public, but not discussed much behind the hoopla of earnings, acquisitions, divestitures and all the talk, talk, talk regarding a new future.

CNBC reported that 121 companies in the S&P 500 (27.5%) cut R&D in the first quarter.  And guess who was on the list?  IBM, once an inveterate leader in R&D, has been reducing R&D spending.  The short-term impact?  Better quarterly earnings.  Long term impact????

The Washington Post reported more this week about the huge sums of money pouring out of corporations into stock buybacks rather than investing in R&D, new products, new capacity, enhanced marketing, sales growth, etc.  $500B in buybacks this year, 34% more than last year's blistering buyback pace, flowed out of growth projects. To make matters worse, this isn't just internal cash flow spent on buybacks, but companies are actually borrowing money, increasing their debt levels, in order to buy their own stock!

And the Post labels as the "poster child" for this leveraged stock-propping behavior…. IBM.  IBM

"in the first quarter bought back more than $8 billion of its own stock, almost all of it paid for by borrowing. By reducing the number of outstanding shares, IBM has been able to maintain its earnings per share and prop up its stock price even as sales and operating profits fall.

The result: What was once the bluest of blue-chip companies now has a debt-to-equity ratio that is the highest in its history. As Zero Hedge put it, IBM has embarked on a strategy to "postpone the day of income statement reckoning by unleashing record amounts of debt on what was once upon a time a pristine balance sheet."

In the case of IBM, looking beyond the short-term trees at the long-term forest should give investors little faith in the CEO or the company's future growth prospects.  Much is being hidden in the morass of financial machinations surrounding acquisitions, divestitures, debt assumption and stock buybacks.  Meanwhile, revenues are declining, and investments in R&D are falling.  This cannot bode well for the company's long-term investor prospects, regardless of the well scripted talking points offered last week.

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Saturday, May 17, 2014

3 Stocks Under $10 Making Big Moves

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>Hedge Funds Hate These 5 Stocks -- Should You?

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Big Stocks to Trade for Gains This Summer

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

ArQule

ArQule (ARQL), a clinical-stage biotechnology company, researches and develops cancer therapeutics. This stock closed up 4.9% to $1.49 in Thursday's trading session.

Thursday's Range: $1.38-$1.50

52-Week Range: $1.38-$2.94

Thursday's Volume: 464,000

Three-Month Average Volume: 321,548

From a technical perspective, ARQL bounced sharply higher here right off its 52-week low of $1.38 with above-average volume. This stock has been downtrending badly for the last four months, with shares moving lower from its high of $2.92 to its 52-week low of $1.38. During that downtrend, shares of ARQL have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of ARQL now look ready to reverse its downtrend and experience a powerful bounce higher off depressed levels. Market players should now look for a continuation move to the upside in the short-term if ARQL manages to take out Thursday's intraday high of $1.50 with strong volume.

Traders should now look for long-biased trades in ARQL as long as it's trending above its 52-week low of $1.38 and then once it sustains a move or close above $1.50 with volume that hits near or above 321,548 shares. If that move starts soon, then ARQL will set up to re-test or possibly take out its next major overhead resistance levels at $1.60 to $1.66, or even $1.78 or its 50-day moving average of $1.84.

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Eagle Pharmaceuticals

Eagle Pharmaceuticals (EGRX), a specialty pharmaceutical company, focuses on developing and commercializing injectable products primarily in the critical care and oncology areas in the U.S. This stock closed up 0.7% to $9.83 in Thursday's trading session.

Thursday's Range: $9.60-$9.94

52-Week Range: $9.16-$16.44

Thursday's Volume: 14,000

Three-Month Average Volume: 143,069

From a technical perspective, EGRX trended modestly higher here with very light volume. This stock recently formed a double bottom chart pattern at $9.25 to $9.16. Following that bottom, shares of EGRX have now started to rebound higher off those support levels and it's now moving within range of triggering a near-term breakout trade. That trade will hit if EGRX manages to take out some key near-term overhead resistance levels at $10.08 to $10.12 with high volume.

Traders should now look for long-biased trades in EGRX as long as it's trending above those double bottom support zones and then once it sustains a move or close above those breakout levels with volume that hits near or above 143,069 shares. If that breakout gets underway soon, then EGRX will set up to re-test or possibly take out its next major overhead resistance levels at $10.50. Any high-volume move above $10.50 will then give EGRX a chance for a powerful bounce higher back towards $11.50 to its 200-day moving average of $12.14.

Hansen Medical

Hansen Medical (HNSN) develops, manufactures and sells medical robotics designed for the positioning, manipulation and control of catheters and catheter-based technologies. This stock closed up 2.4% to $1.26 a share in Thursday's trading session.

Thursday's Range: $1.21-$1.31

52-Week Range: $1.10-$2.89

Thursday's Volume: 839,000

Three-Month Average Volume: 594,430

From a technical perspective, HNSN spiked notably higher here right above some near-term support at $1.20 with above-average volume. This stock has been downtrending badly for the last month and change, with shares moving lower from its high of $2.84 to its 52-week low of $1.10. During that downtrend, shares of HNSN have been consistently making lower highs and lower lows, which is bearish technical price action. That move has also pushed shares of HNSN into oversold territory, since this stock's current relative strength index reading is 18.51. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher from.

Traders should now look for long-biased trades in HNSN an long as it's trending above $1.20 or above $1.15 and then once it sustains a move or close above Thursday's high of $1.31 to some more near-term overhead resistance at $1.38 with volume that hits near or above 594,430 shares. If that move gets started soon, then HNSN will set up to re-test or possibly take out its next major overhead resistance levels at around $1.70 to $1.90.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>3 Stocks Spiking on Unusual Volume



>>5 Hated Earnings Stocks You Should Love



>>5 Stocks Under $10 Set to Soar

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

CNBC.com and Forbes.com.

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


Friday, May 16, 2014

Deflating the Chinese Property Bubble

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While Chinese property sales have been somewhat sluggish for nearly a year now compared to their historical average, they took a definite turn for the worse in April according to recently released data.

Government figures show that real estate sales fell by 7.8 percent in the first four months of this year while new construction starts were off by 22.1 percent. That's is potentially very bad news in a country where nearly 23 percent of gross domestic product is somehow tied to the real estate market, whether it's the construction, sale or furnishing of new buildings. Most significantly though, the slowdown seems to be spreading from third- or fourth-tier cities – the largest non-capital cities in a given province – to second- and even first-tier cities such as provincial capitals and Shanghai, Guangzhou, and even Beijing.

There are two primary factors driving the sales slowdown; over-construction and over-investment, which are two distinctly different issues.

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Largely thanks to overzealous real estate developers, as recently as September, construction demand was slated to grow by about 8.5 percent annually through 2017. That demand was expected to be fairly evenly split between state-led programs to expand and modernize infrastructure such as roads and railways and residential buildings such as single-family homes and apartment buildings.

Much of that residential real estate boom has been justified by new household formation; a couple marrying, purchasing a home and striking out on their own. But for much of the past decade annual births in China have been holding steady at around 12 million, largely thanks to the country's one-child policy. As a result new household formation in the country has actually fallen by around 7 percent per year over the past two years ! as Chinese wait to get married (current average age at marriage is 25) thanks to both economic and social constraints.

At the same time, the argument that ongoing urbanization will drive property demand is falling short. While it is true that rural migration has helped boost property demand in lower-tier cities, in tier-one and tier-two cities rural migrants are essentially priced out of the market.

But while real demand has been slackening, investment demand has continued to run apace. It is estimated that about 15 percent of total commercial home transactions in China are driven purely by investment demand. Those investors have essentially been refusing to move their real estate at a loss, as demonstrated by the fact that while prices in select cities have been falling – down as much as 15 percent in Beijing – nationwide home prices are holding relatively steady. Sellers are unwilling to lower their asking prices to move the property and buyers are unwilling to pay the current asking price.

On top of that, it is widely expected that a new property tax will be rolled out sometime in the next 18 months even as the government continues cracking down on the shadow banking sector, a key source of funding for property purchases. That is putting further pressure on the estimated inventory of 10 million empty residential units in the country.

That combination of demographic factors, new taxes and lending pressures led many analysts to estimate that the number of unoccupied units could reach 18 million within the next two or three years, creating a significant drag on the Chinese economy and setting up a situation eerily reminiscent of our own property bust here in the US.

The real question, though, is whether or not this will finally result in a hard Chinese economic landing. I tend to think it won't.

For one thing, the property slowdown is largely being driven by government policy. Despite encouraging lenders to increase their activity in the real estate market, the ! governmen! t has begun requiring down payments of as much as 60 percent in top-tier cities in order to cool what had become clearly overheated prices.

It is also cracking down on the shadow lenders in an attempt to reduce the systemic risk they pose to the country's financial system as the government focuses on its transition from an export- and investment-led to a consumption-driven economy. As that transition occurs, by necessity the country will have to absorb slower economic growth as the face of industry changes and excess housing inventory is absorbed.

Over the long-term, the property slowdown as a result of those reform measures is actually bullish. Even if GDP growth slows down to around 5 percent over the next few years, a sustainable 5 percent is much more attractive than a doctored 7 percent.

In the meantime though, I would avoid betting on a hard Chinese landing, a bet that has cost many investors dearly over the past few years. I would, however, avoid most of the leading Chinese real estate developers such as China Vanke (OTC: CVKEF) and Xinyuan Real Estate (NYSE: XIN) which are almost entirely dependent on the domestic markets.

Otherwise, companies focused on Chinese consumers and infrastructure-focused plays should continue to do well despite the deflating property bubble in the country. By and large, in a country of more than 1 billion people, the average middle-class Chinese isn't heavily involved in the real estate market and should not not (?)be greatly impacted by declining real estate prices, particularly as the government is likely to intervene again to prevent a hard landing.

At the same time, infrastructure development is a key element of the most recent 5-year plan, particularly railroad construction. Spending on those programs will remain largely sacrosanct, if for no other reason than to continue shoring up growth.

Wednesday, May 14, 2014

EU ruling a stunner to U.S. Internet community

A decision by Europe's high court that individuals can have links to information they wish forgotten removed is sending shock waves through the Internet community.

"The EU wants to unleash what will be the most extensive censorship and information whitewashing push since Orwell's Big Brother," wrote Lauren Weinstein on the Privacy Forum, a privacy discussion list.

The European Court of Justice ruled on Tuesday that a Spaniard named Mario Consteja Gonzalez had the right to request removal of a link to a legal notice about his home's repossession and auction in 1998 from a Google search because it was irrelevant or outdated.

RELATED: New European ruling game-changing for U.S. companies

The ruling enshrines "the right to be forgotten." It applies within the European Union but not outside of it.

Because Google algorithms give greater weight to items that have many links to them, the original notice of the home's repossession on the newspaper's website now pops up on the first page of results in the United States. Some news sites even use a screen grab of the notice as the illustration for their stories.

The European high court's ruling didn't surprise Peter Swire, a law professor and privacy expert at the Georgia Institute of Technology in Atlanta, Ga.

"For this court, it's not a business practice case, it's a human rights case," he said.

Europe treats privacy, "as a fundamental human right," Swire said.

The judges ruled that Gonzalez' privacy rights were more important than "the interest of the general public in having access to that information."

That's in line with a European concept of "practical obscurity," said Swire.

The court didn't rule that the newspaper that originally published the information, La Vanguardia in Barcelona, had to remove it. Instead, it required that Google remove links to the auction notice from its search engine results.

The court drew a distinction between copies of newspapers sitting bound in a library in! Spain and a search engine that turns up the information about the house's auction and makes it available to anyone immediately.

"On a practical level, people used to have privacy through obscurity," but search engines have taken that way, said Swire. With this ruling "the court is returning things closer to the old status quo."

He notes that the entire concept of what's public and what's private is different in Europe.

"Many things that are public records in the United States are considered confidential in the European Union. For instance, in many European countries it's very hard to find out who owns a piece of land, whereas here it's a matter of public record," Swire said.

American privacy experts aren't sure how such a rule would be implemented. A company would have to have a way of confirming that the person making the request to have a link removed was indeed a citizen of the European Union and that the information was about them.

In the United States, the closest kin would be the Digital Millennium Copyright Act, which allows copyright holders to demand material be removed from sites where it was posted without permission.

"We're very acutely aware of the potential for abuse," said Danny O'Brien, international director for the Electronic Frontier Foundation, a internet policy organization based in San Francisco.

He ticked off possible examples. People wanting to take down content that isn't about themselves. People wanting to take down content that a court determines is newsworthy. People wanting to improve their business' results on Google by having all evidence that another person is selling a given item taken down.

The removals won't necessarily be invisible. When items are removed for copyright, Google often notes that "items have been removed from this search," with a link to a site called the Chilling Effects Clearinghouse, which lists the original request that the material be removed.

O'Brien imagines a similar site might be built for E! urope. Th! at way, people inside Europe would know when something had been taken down.

Many suggest that Wikipedia might especially be targeted by those wishing to have their past activities forgotten.

"It does put Wikipedia in the cross hairs, because that's pretty much what it does," said O'Brien.

Wikipedia co-founder Jimmy Wales told the BBC he couldn't imagine the ruling will stand for long.

On Twitter, he said, "I'm sure you agree that it shouldn't be illegal to write about something based on how long ago it happened."

Tuesday, May 13, 2014

Allergan to Valeant: Thanks, But No Thanks

This morning, Allergan (AGN) finally had its answer for Valeant (VRX), which is seeking to acquire it in partnership with Pershing Square. The answer was no.

Bloomberg

Allergan said that it didn’t believe Valeant’s strategy of big spending cuts–which Allergan’s CEO dubbed “cutting and slashing”– would produce long-term value for shareholders, and said Allergan could grow at a 20% to 25% clip on its own.

Citigroup’s Liav Abraham wonders if this is all Allergan has to fend off Valeant:

Notwithstanding the value proposition of AGN on a stand-alone basis, we wonder whether today's revised targets are sufficient to convince AGN shareholders against a VRX/AGN combination given investors' investment horizons. We anticipate that the AGN Board is considering additional strategic alternatives for the company, including more aggressive deployment of AGN's robust balance sheet and/or seeking a "white knight" bid.

Aegis Capital Corp.’s Raghuram Selvaraju notes that the news isn’t good for Valeant, but he doesn’t think Allergan will have much luck finding a savior:

Nevertheless, while we believe that the rejection vote is a setback to Valeant, we remain confident that Valeant will either ultimately succeed in its bid to acquire Allergan near-term or seek to consummate another transaction elsewhere. We note that thus far it does not appear that Allergan has much strategic wiggle room, having already been rebuffed by potential white knights such as Sanofi S.A. (SNY) and Johnson & Johnson (JNJ) and with little chance, in our view, of making a meaningful acquisition of its own, such as the purchase of Shire (SHPG).

Sterne Agee’s Shibani Malhotra thinks most Allergan shareholders will support Allergan over Valeant:

Most investors we have spoken to agree that there are business risks to Valeant's acquisition of Allergan and that, over the long run, Allergan is likely more valuable as an independent company. Their support for the merger however will depend on the ultimate price being offered by Valeant and whether they believe that AGN can get to this level as a standalone company over the next 18-24 months. The situation is confounded by the large stock component of Valeant's offer; as Allergan’s management stated, based on current terms, shareholders are essentially buying VRX. Valeant management and investors supporting the transaction expect VRX to rally significantly on this deal which, in turn, would increase the price paid to AGN shareholders.

Read Barron’s take on the deal here.

Shares of Allergan have dropped 1% to $159.75 at 3:32 p.m. today, while Valeant has fallen 1% to $129.85, Sanofi has gained 1.2% to $52.61, Johnson & Johnson has dipped 0.4% to $100.50 and Shire is off 0.8% at $166.76.

Monday, May 12, 2014

China shares rise on reform talk; India up on election

Chinese stocks jumped Monday as the market welcomed a blueprint for capital market reform, while shares in India hit a new high on hopes the election will bring in a more business-friendly government.

The Shanghai Composite (CN:SHCOMP)  rose 1.9% after Beijing on Friday outlined its vision for a less regulated market, including a more investor-driven system for initial public offerings and easier access for foreign capital.

The impact spilled over to Hong Kong, where the Hang Seng Index (HK:HSI)  was up 1.6%.

Reuters

In Mumbai, the S&P BSE Sensex (IN:1)  hit a record 23,336.19 before easing to 23,323.70, up 1.4% from the previous close. It has risen more than 10% since early March. Exit polls predicting the outcome of the national election are likely to start coming in later Monday, and investors hope the Bharatiya Janata Party will win enough seats to form the next government in place of the ruling Congress party-led coalition.

Much of the rest of Asia started the week with a downward bias as the positive lead from Wall Street — where the Dow Jones Industrial Average closed at a record high Friday — was offset by renewed concerns over Ukraine. Pro-Russian separatists in the east of the country declared victory in a secession referendum Sunday, increasing tensions between the West and Moscow.

Japan's Nikkei (JP:NIK)  pared its earlier gains and was last down 0.2%, as the dollar (USDJPY)   came off a session high of ¥102.05 against the yen. The dollar was last trading at ¥101.95, compared with ¥101.82 late Friday in New York.

"Corporate earnings reports and economic data are on watch this week but the stagnant currency market will keep any Nikkei gains capped," said Investrust Chief Executive Hiroyuki Fukunaga.

In Tokyo, Olympus was up 4% after the company said its operating profit doubled in the recently ended fiscal year. Nippon Steel & Sumitomo Metal also added 1.1% after a positive earnings report.

Australia's S&P/ASX 200 (AU:XJO)  was down 0.3%, and South Korea's (KR:SEU)  Kospi was 0.3% higher, while Singapore's Straits Times Index (SG:STI)  lost 0.6%.

Mining stocks in Australia were weak after spot iron-ore prices fell to a 20-month low, with BHP Billiton (AU:BHP)  , Rio Tinto (AU:RIO)  and Fortescue Metals Group (AU:FMG)  all down.

A number of markets were looking ahead to events on Tuesday. In Australia, Prime Minister Tony Abbott's government will release its first federal budget, while China will publish industrial production data and retail sales figures for April.

Bradford Frischkorn and Debi Nayak contributed to this article.

More MarketWatch news:

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Sunday, May 11, 2014

Week In FX Asia – Sales Tax Hike Boosts Q1 Numbers In Japan

JAPAN

Sovereign debt rises to $10.08 trillion BOJ Governor says sales tax effect contained Introduction of sales tax hike gave boost to economy in Q1 BOJ to increase reserves

The first quarter results was solid for Japan. The sales tax hike had a positive transitory effect as consumers rushed to purchase big ticket items before it was introduced. There is an ongoing debate on what the long term effect of this tax will have given the sluggish recovery of the economy. The reason why it was introduced was made even more pressing this week as the sovereign debt numbers stand at $10.08 trillion in 2013. Japan must find a way to balance their fiscal deficit and not rely on outside debt. The only way to do this is to cut services and increase taxes. This will be hard sell on the population and could hurt PM Abe political stability.

The Bank of Japan continues to be the main driver of Abenomics. The 2 percent inflation target has been reinforced by the BOJ, but there are a lot of doubts if it can be achieved. The central bank needs to increase the amount of reserves given the QE program and the pressure to expand it.

The JPY has been trading in a 101 range all week. Foreign central banks around the world had more to do with the price of Yen that the BOJ. Janet Yellen and Mario Draghi both talked down their currencies for different reasons. The US is showing signs of recovery, but Fed chair Yellen focused on the employment risks going forward. Draghi over at the ECB disappointed by not cutting rates or brining forth a QE program to stop the threat of deflation. Draghi did his best to talk down the EUR which was close to the 1.40 line.

CHINA

Housing Bubble Arguments gather more data Exports Rise 0.9% Service Expansion slows down in April China inflation drops to 1.8%

China had a week of mixed indicators. Inflation decreased which is a positive for the central bank as it leaves it room to set policy to boost growth. Exports rose by 0.9% in April. The increase although minimal is enough to disprove the overall slowdown in appetite for Chinese goods around the world. The main risk continues to be that China might not meet its target of 7.5% growth in 2014.

The housing sector continues to worry investors. Real estate developers continue to halt projects. Nomura has called for the end of the housing boom in China. Ironically the local government is somewhat responsible for the end as it has tried to limit the amount of speculation in the market. At this point it is too early to tell if deflating the bubble will be better in the short term as it could have a heavy impact on employment.

The services industry has lost momentum in April. Employment growth is at a seven month low. The government is aware of the risk of not meeting targets and again pledged to push forward the necessary reforms to make it a reality. The most expected reforms are around financial markets which remain closed off to external investment.

Japan Debt Grows Forcing Abe to Get Real About Fiscal Reform – MarketPulse Chinese Real Estate Developers Signal Drop in Construction – MarketPulse Chinese Producer Price Index Drops 2 Percent in April – MarketPulse Japan Growth Boosted by Pre Sales Tax Consumption – MarketPulse BOJ To Quadruple Rate of Reserves To Offset QE Assets – MarketPulse China Reaffirms Pledge To Reform Capital Markets – MarketPulse China Inflation Drops to 1.8 Percent in April – MarketPulse Chinese Premier Confident in 7.5 Percent Growth in 2014 – MarketPulse China Data Leads Asian Equities Higher – MarketPulse China Exports Up 0.9% – MarketPulse China's Trade Unexpectedly Rises – MarketPulse Japan PM Abe Says OECD Needs To Push Fair Trade – MarketPulse Chinese Services Expansion Slows Down in April – MarketPulse Japan PM Abe Reaffirms EU Trade Pact Next Year – MarketPulse Report: China's Property Bubble has Burst – MarketPulse Asian Markets Fall to One Month Low – MarketPulse Nomura Says Chinese Housing Bubble Has Burst – MarketPulse India's FinMin Says Growth Will be 6 Percent in 2014 – MarketPulse BOJ Governor Confident the Sales Tax Hike Effect Will be Contained – MarketPulse

WEEK AHEAD

 

* GBP Employment Change
* GBP Bank of England Inflation Report
* JPY Gross Domestic Product
* EUR Euro-Zone Consumer Price Index
* EUR Euro-Zone Gross Domestic Product
* EUR Euro-Zone Consumer Price Index
* USD Consumer Price Index

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Forex Economics Markets

Originally posted here...

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Thursday, May 8, 2014

4 Big Tech Stocks on Traders' Radars

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

>>Must-See Charts: Fight the Selling With These 5 Trades

From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

>>5 Short-Squeeze Stocks Poised to Pop

These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. And when there's a big catalyst, there's often a trading opportunity.

Without further ado, here's a look at today's stocks.

Twitter

Nearest Resistance: $40

Nearest Support: N/A

Catalyst: Lock-Up Expiration

Shares of social media star Twitter (TWTR) are down more than 4% this afternoon, tacking on more losses to a pretty rough week for the micro-blogging platform. Since Monday, shares of Twitter have dropped more than 21% following the expiration of the firm's lock-up period. All of that excess supply of shares is piling selling pressure onto an already broken chart.

From a technical standpoint, Twitter's chart broke at the end of April, when shares closed materially below $40 for the first time after earnings. Lower levels still look likely from here. I'd recommend staying clear of this name until it can establish some semblance of support again.

Facebook


Nearest Resistance: $64

Nearest Support: $55

Catalyst: TWTR Sympathy Move

Social network Facebook (FB) is down 2.6% on high volume this afternoon, the result of sympathy moves from industry peer Twitter. And while Twitter's chart looks broken right now, Facebook's setup isn't faring much better.

Facebook looks "toppy" from a technical standpoint, forming a classic head and shoulders top in the intermediate term with a neckline at $55. Put simply, if FB violates that line in the sand at $55, then a lot more downside looks likely. That's not particularly comforting news for Facebook investors who've seen their stakes fall by more than 20% since March, but it's the high probability trade that's shaping up in shares. Keep a very close eye on that $55 level in May.

Cognizant Technology


Nearest Resistance: $47

Nearest Support: $45

Catalyst: Q1 Earnings

Better-than-expected profits weren't enough to prevent the selling in Cognizant Technology (CTSH) this afternoon -- shares of the $28 billion IT outsourcer are down 5% this afternoon following first-quarter results. Cognizant earned 62 cents last quarter, beating Wall Street's 55-cent estimates pretty handily. But it's the firm's outlook that failed to live up to expectations: CTSH expects $10.3 billion in revenue for the full year, shy of investors projected numbers.

Technically, the selling broke shares down below former support at $47, a level that's been a floor for this stock since all the way back in November. That newfound absence of buying pressure at $47 is a major red flag for CTSH's ability to catch a bid higher going forward.

Support at $45 is pretty weak. Lower ground looks likely in the near-term in Cognizant.

Baidu


Nearest Resistance: $310

Nearest Support: $280

Catalyst: TWTR Sympathy Move

Last up is Chinese Web search company Baidu (BIDU), another tech name that's seeing big downward volume today as a sympathy move to Twitter. While today's price action isn't exactly welcome, the good news is that it's not exactly a bid deal either. Given the broad range that BIDU has been trading in, today's 5% selloff looks more like noise than anything else.

Key support at $145 is the line in the sand at BIDU. As long as shares hold that level, it's not a sell.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.


RELATED LINKS:



>>5 Stocks Insiders Love Right Now



>>4 Stocks Rising on Big Volume



>>3 Stocks Under $10 Making Big Moves

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji


Tuesday, May 6, 2014

Ready for a Bear Market?

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The Investing Daily Summit

This past week I spoke about energy investing at Investing Daily's annual Investing Summit in Alexandria, Virginia. After listening to the other speakers and talking to a number of attendees, it was clear that the specter of a bear market was on almost everyone's mind. This is especially true for those who may have a short time horizon for their investments, as historically even conservative holdings have taken steep plunges during market downturns.

Over a longer period of time, good companies bounce back. But let's take a look at one of the major integrated oil companies in order to gain a better understanding of how much can be lost in a downturn, and how quickly.

Chevron (NYSE: CVX) reported disappointing earnings last week, but over the past decade has been one of the best performers among the supermajors. Over the past five years Chevron has handily outperformed ExxonMobil (NYSE: XOM), while paying a better dividend to boot (3.4 percent annualized versus XOM's 2.7 percent).

140505telCVXXOM

Most people would be happy to have had Chevron in their portfolio over the past decade or so, but let's take a closer look at some short-term performance to gain perspective on what can happen even if you buy a solid company like Chevron just before a market downturn.

Since the beginning of 2000, Chevron has returned a total of 297.5 percent to shareholders (including dividends). By comparison, ExxonMobil returned 209.2 percent, BP (NYSE: BP) returned 54.9 percent, and the S&P 500 returned 107.3 percent. (BP demonstrates a different sort of risk, which I plan to discuss in a future column.)

If you had bought Chevron the first week of 2000, just seven weeks later you would have been down 20 percent. During the spring of 2000 yo! u would have gotten back into positive territory, but the dot-com collapse would soon have a chilling impact on the market. You would have ended the year with a modest loss, you would have been back in modestly positive territory in 2001 and early 2002, but the stock market downturn in the second half of 2002 would have had you back underwater.

By January 2003 your January 2000 Chevron purchase would have been down by nearly 30 percent. It would be early 2004 before you broke back into positive territory, but it was about to make a strong move up. How many would have held onto their shares in this situation? After four years and being down nearly 30 percent — on a conservative investment no less! — how many would have thrown in the towel?

From its low point in 2003, Chevron would catch the wave of higher oil prices and treat investors to a 260+ percent total return over the next five years. The stock would peak in May 2008, shortly before oil prices plummeted from well above $100 per barrel back down, albeit briefly, into the $30s.

There would be several reversals on the way to that big gain. In the five-year period leading up to May 2008, there were several corrections of more than 10 percent. Between February and May 2005 Chevron shares dropped 17 percent. Between September and October of that same year, shares pulled back 13 percent.

There were a couple of reversals in 2006, and then volatility spiked in 2007. July 2007 saw shares pull back 13 percent, only to be back in record territory by September. There would be a near 10 percent pullback in September/October 2007, and from Christmas Eve 2007 shares pulled back 16 percent over six weeks.

Things would really heat up in 2008, as oil prices made their historic run. From that low point in February 2008, shares would run up 27 percent before peaking in May. By July 25 the stock had dropped 20 percent, but oil prices were about to collapse and send all oil shares down sharply.

140505telCVX

By October the share price of Chevron was down 44 percent from its May 2008 highs. Shares rebounded from that low point and ended the year down 21 percent, but this was in the midst of a bear market that inflicted even worse losses on the S&P 500 and the Nasdaq. Further, oil prices declined 80 percent during the year — from $145/bbl on July 14 to $30/bbl on Dec. 23.

Had you bought at the peak in May 2008, you would have spent the next three years in negative territory, but today you would be sitting on nearly 24 percent of capital appreciation in addition to a dividend that ranged from 2.5 percent to 3.5 percent annually over that time span.

Conclusions

It's impossible to know without the benefit of hindsight whether we are on the cusp of a bear market that could send shares of even conservative companies tumbling. When one does come along, individual investors will need to understand their risk tolerance and time horizon so as not to get shaken out of the stocks with the best long-term prospects.

If your time horizon is five years or more, a major integrated oil company like Chevron can be a  solid addition to your portfolio. If your risk tolerance is higher, then there are plenty of more aggressive options. But don't invest in any stock with money you might need in two years. Even a great company like Chevron could have sent you into negative territory for three or four years if you bought at the wrong time, and there were times you could have faced a 40 percent loss if you bought at a particular peak.

Top Machinery Stocks To Watch Right Now

(Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)

Portfolio Update

Clear Sailing for ConocoPhillips

Conservative portfolio holding and #6 entry on our Best Buys list ConocoPhillips (NYSE: COP) ha! s been sh! ifting its focus toward US oil plays with the intent on growing crude production by 3-5 percent annually until 2017. On Friday ConocoPhillips delivered an earnings report card that beat market expectations and indicated the company remains on track to meet its production growth objectives.

First-quarter 2014 earnings came in at $2.1 billion, or $1.71 per share, easily beating the Street's average estimate of $1.56 per share. The company's total realized price was $71.21 per barrel of oil equivalent (BOE), compared with $68.57 per BOE in the first quarter of 2013. The company cited higher natural gas, bitumen and natural gas liquids prices for the increase. Cash margins improved to $32.07/BOE, up from $29.07 in Q4 2013 and $26.80 in Q1 2013.

Production for the quarter was 1.53 million BOE per day, an increase of 3 percent over Q1 2013 when adjusted for dispositions and downtime. Growth came primarily from the liquids-rich unconventional plays at the core of the company's expansion plans. The Eagle Ford and Bakken collectively delivered 183,000 BOE/day for the quarter, a 41 percent increase from the first quarter of 2013. The Eagle Ford and Bakken achieved a new peak daily production rate of 163,000 BOE/day and 54,000 BOE/day, respectively, and added 48 wells during the first quarter.

The stock is now up 18 percent since joining the Conservative Portfolio less than three months ago. Investors who feel like they missed out should monitor the company during the next two quarters, as ConocoPhillips indicated that production will be lower due to planned maintenance — particularly during Q3. Volumes in Q4 are projected to be back above Q1's outstanding performance, so a dip during Q2 or Q3 should be regarded as a buying opportunity. Buy COP on dips below $73.          

– Robert Rapier