Friday, February 21, 2014

The News Keeps Getting Worse

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For those hoping for a rebound in this depressed asset class, they should look more closely as MoneyShow's Jim Jubak reviews a series of developments that are not too encouraging.

We're getting more perplexing and perhaps dispiriting news from emerging markets and consumer companies. We've recently gotten an announcement from Loreal, the big French cosmetics company, hair dyes, Garnier is one of their brands, Loreal is one of their brands, that they're going to pull Garnier out of the Chinese market. Garnier is sort of the lower end of their price range. What they were saying basically in China is they're not seeing much growth down at that end. They're seeing a lot of pricing pressure, so the mass market in China is not very attractive to them. That would be one isolated data point, but we've got other data points from companies saying the same thing. We have Nestle coming out and talking about India and saying that they had made a strategic mistake by trying to package goods for the lower end of the market in very affordable bulk lots and here we're talking about noodles and things like that, and Nestle basically saying, not that we're going to pull out of India, but this is a mistake.

We're seeing much more growth at the upper end of the market. We're not seeing the growth at the lower end of the market that we hoped for. We're not seeing people move up. The whole strategy was, introduce them to low-priced noodles and then move up to higher-priced noodles or buy one tube of toothpaste and then move up to a more expensive toothpaste. Instead, what they're saying is people are staying exactly at the price point where they were introduced and not moving up. What Nestle has said is we need to refocus our efforts, because this is not working the way we thought it would and we're seeing a lot of price pressure at the lower end of the market for rising commodity prices for things like palm oil for soap, etc. What you're seeing is a kind of two-pronged worry about emerging economies. One is that, on the luxury end in countries like China, because politically it's become unacceptable to show a lot of conspicuous consumption if you're an official, or something like that, so we're seeing some pressure on the upper end. At the lower end, more importantly, what I think you're seeing is a sense that these economies aren't growing as fast as they once were, because you're not seeing the same kind of move up from the lower end. I think you're still seeing, over time, that kind of process where people's incomes do go up and they do indeed move up the consumer ladder, but it's not happening as fast as we would have hoped.

In Brazil, for example, the difference between 2% growth and 4% growth means that this process is not happening very fast. In India and China all of that very, very important focus or influence of lower growth rates, not no growth rates, but lower growth rates, on a process that companies were thinking about. For the big global consumer companies, I think you're seeing some rethinking about this. I don't think anybody is abandoning these markets, but they are certainly going how much money do we put into this? How much marketing do we put into this, because we're not seeing the growth that we expected? That's going to show up in some lower earnings figures for 2014.

This is Jim Jubak for the MoneyShow.com video network.

Thursday, February 20, 2014

Tesla Motors: Good News, Bad News, Guess Which Investors Notice?

Shares of Tesla Motors (TSLA) have surged today after the upstart automaker issued a recall of charging adapters but said it sold more Tesla Model S sedans than it had expected.

Andrew Yeadon

Investors have focused on the latter, as shares of Tesla have jumped 13% to $157.18 at 3:04 p.m. today making General Motors (GM), which has risen 0.6% to $39.81, and Ford (F), which is up 1.7% at $16.39, look like they’re standing still.

The New York Times reports on the recall:

Tesla is issuing a recall action concerning about 29,000 charging adapters for its 2013 Model S electric cars because of a potential fire hazard, the automaker has informed the National Highway Traffic Safety Administration in a letter sent to the agency over the weekend.

Tesla said in the letter, which was dated Jan. 12, that the NEMA 14-50 adapters used for 240-volt recharging of the Model S may overheat, which "could cause problems including melted adapters and, in a worst-case scenario, fire." The adapter makes it possible to connect the car's charging plug to a 240-volt household receptacle.

But those sales, those sales! Bloomberg has the details:

Tesla Motors Inc., the maker of high-end electric cars, gained the most in six weeks after the carmaker said it delivered 6,900 Model S sedans in the fourth quarter, pushing full-year sales beyond a company target.

Sales of the battery-powered Model S, priced from about $70,000 totaled at least 22,450 last year, based on figures previously released by the Palo Alto, California-based carmaker. The company had said it aimed to sell 21,500 in 2013. Tesla revenues for the fourth-quarter will exceed forecasts by 20 percent, the company said separately in a statement.

Tesla’s shares traded down as much as 1.9% this morning before the sales news sent it shooting higher. As they say, a picture is worth my 300 words (click for a larger image):

Correction & Amplifications: This post originally reversed the prices of Ford and General Motors.

Tuesday, February 18, 2014

Volatility and Options in MannKind Shaking Speculators Out

MannKind Corp. (NASDAQ: MNKD) is a stock that has been on a wild ride for many years. The company’s inhalable insulin has been held up from being approved for years as well. That seems to be coming to a head now, but investors have to understand just how big this game is. It can be a homerun, but it can also be a crusher if the FDA goes against it.

After a huge gain on Thursday, shares tanked on Friday. MannKind announced that AFREZZA’s review date is tentatively scheduled for April 1, 2014. If you have followed this story for as long as we have, you might find the same irony that the date is set for April Fool’s Day. The company’s press release said that the target date for FDA’s AFREZZA review is actually April 15, 2014.

We would point out that the date and details are subject to FDA conformation via a Federal register notice. MannKind had resubmitted its new drug application back on October 13, 2013 to assist in helping adults with Type-1 or Type-2 diabetes.

Be advised that MannKind will be making a presentation to investors at the JPMorgan 2014 Healthcare Conference on Wednesday, January 15, 2014. The company has maintained for years that AFREZZA is approvable. MannKind has also had close to $900 million in operating losses from expenses and R&D in the last five years or so, with total losses being far higher than that since its inception.

Options trading was elevated on Thursday, and the same thing is true for Friday. This implied volatility is enough to make or break careers.

Based upon the new data, options traders are now moving their bets out to May 2014 because there are not yet active April contracts. A volatility bet at the $6 strike prices for both the put and call combined would be the equivalent of close to $4.25 per share. For that to pay off, investors would have to see the stock fall to under $1.75 or rise above $10.25 by May 17. We won’t bother telling you expensive the options are if you go out later in 2014 or into 2015 (or 2016).

Shares were down 13% at $6.16 on almost 18 million shares with about 90 minutes of trading left on Friday. Thursday’s gain was over 18% to a close of $7.08 on over 24 million shares.

Sunday, February 16, 2014

Jim Cramer's 7 Stocks in 60 Seconds: TSCO CHGG SSYS TKR HOT CIEN MHR

Check out Jim Cramer's latest trading recommendations on "Action Alerts Plus".

(Updates from 11:12 a.m. ET with closing information.)

NEW YORK (TheStreet) -- Here's what Jim Cramer had to say on CNBC's "Squawk on the Street" Friday.

Shares of Tractor Supply Company (TSCO) are lower following another downgrade, this time from Oppenheimer. Cramer said it "had been a great growth company" but nobody wants to own it anymore. The same is true for Lumber Liquidators (LL) and Ulta Salon (ULTA). TSCO fell nearly 1% to $65.70. Bank of America downgraded Chegg (CHGG) to hold from buy. Cramer said the company has a "terrible profit outlook." CHGG plummeted 22.3% to $6.17. "The 3-D printing stocks are back and bigger than ever," Cramer said. He called Stratasys (SSYS) the best of the group. SSYS rose 4.6% to $123.69. Jefferies upped its price target on Timken (TKR) to $66. Cramer said the Action Alerts PLUS holding could buy back 20% of its outstanding shares with the deleveraging of its balance sheet. TKR was up 2.6% to $59.66. Starwood Hotel & Resorts Worldwide (HOT) is higher after beating on earnings estimates. "This stock is a great play on China," Cramer opined. The company was upgraded by UBS to buy from hold. HOT was 4.3% higher at $78.62. Ciena (CIEN) is "another name I really like," Cramer said. He likes the deal with Ericsson (ERIC) to develop optical networking solutions. CIEN is another AAP holding. CIEN jumped 7.3% to $25. Magnum Hunter Resources (MHR) CEO Gary Evans continually claims the Utica Shale would be big for the company. "Bravo!" Cramer enthused. The company has struck natural gas in Ohio when no one else thought it was there, he added. MHR rose 6.5% to $8.69. To sign up for Jim Cramer's free Booyah! newsletter, with all of his latest articles and videos, please click here. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell

Stock quotes in this article: TSCO, LL, ULTA, CHGG, SSYS, TKR, HOT, CIEN, ERIC, MHR 

Saturday, February 15, 2014

Western Union (WU) Rises Despite Fourth-Quarter Profit Decline

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NEW YORK (TheStreet) -- Western Union  (WU) defied typical market trends on Wednesday, rising 2.83% to $16.33 despite the world's largest money-transfer company posting a 27% drop in fourth-quarter profit thanks to larger compliance costs.

The company also announced a $500 million share buyback.

Net income fell to $173.4 million, or 31 cents a share, from $237.9 million, or 40 cents a share, in the same quarter a year earlier. Analysts expected earnings of 32 cents a share in the latest quarter. Revenue declined slightly to $1.42 billion.

The company also said it expects earnings per share of $1.40 to $1.50 for fiscal year 2014, matching reduced expectations from the company's third-quarter report. Must Read: Western Union Reports Fourth Quarter And Full Year Results TheStreet Ratings team rates WESTERN UNION CO as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate WESTERN UNION CO (WU) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share." Highlights from the analysis by TheStreet Ratings Team goes as follows: Despite the weak revenue results, WU has outperformed against the industry average of 20.5%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share. 47.11% is the gross profit margin for WESTERN UNION CO which we consider to be strong. Regardless of WU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 15.21% trails the industry average. Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the IT Services industry and the overall market, WESTERN UNION CO's return on equity significantly exceeds that of both the industry average and the S&P 500. In its most recent trading session, WU has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year. WESTERN UNION CO's earnings per share declined by 13.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, WESTERN UNION CO reported lower earnings of $1.69 versus $1.84 in the prior year. For the next year, the market is expecting a contraction of 15.4% in earnings ($1.43 versus $1.69). You can view the full analysis from the report here: WU Ratings Report

Stock quotes in this article: WU 

Sunday, February 9, 2014

How to survive in an office of me-firsters

Do you trust your co-workers?

Do you trust your boss?

Does anyone at work trust you?

COLUMN: Trust is key in best workplaces
COLUMN: You can learn to trust on job again

These are questions we may not ask ourselves consciously, but they are key in determining success in our careers.

"I think what makes trust in the workplace a little bit different is that the stakes are usually higher day to day in terms of pushing for profit and everyone is trying to maximize their own gain in the workplace," says David DeSteno, a Northeastern University psychology professor. In other words, your colleagues are likely focused on themselves, not you or anybody else.

In deciding whether we should trust someone, many of us rely on a person's reputation, DeSteno says.

That's not a good idea.

"Reputations are not a good predictor" of what someone will do, he says. Research has shown that even the most honest people are willing to cheat if they feel they can get away with it.

Furthermore, when questioned, the people who cheat will claim they did act fairly, he says.

“Your mind is always making calculations between what is good for me in the here and now versus what it's going to do to me in the long term.”

— David DeSteno, Northeastern University

"Your mind is always making calculations between what is good for me in the here and now versus what it's going to do to me in the long term," DeSteno says.

Figuring out who is honest and when can be difficult in today's workplace. In DeSteno's new book, The Truth about Trust: How It Determines Access in Life, Love, Learning, and More, he discusses how to look at trust based on research.

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Among his tips:

• Look for several cues. Don't rely on one nonverbal cue, such as shifty eyes, when determining someone's trustworthiness.

Instead, look for c! ues that express a more general representation of someone's internal motivations and thoughts.

• Don't blindly trust your gut. "Your intuitive mind possesses some knowledge that your conscious one doesn't," he says.

"It also has much more practice in using this knowledge. Don't disregard your hunches as some irrational feeling or intuition but give them serious consideration," DeSteno says. But don't have blind allegiance to your hunches either.

Think about whether your gut reaction is on target.

All for one and one for all may be what bosses want in the office, but that doesn't usually happen.(Photo: AndreyPopov, Getty Images)

• Accept that you can be untrustworthy. "As much as we may hate to admit it, the minds of all normal people — including ourselves — possess mechanisms that favor immediate reward and selfish gain," he says.

"It's not something to lament; it's something to manage," DeSteno says. We need to be aware of situations most likely to tempt us.

• Don't let technology seduce you. If information comes from a computer, people often assume it must be more valid than if it had come from a human.

But online information is only as trustworthy as the people supplying it.

• Don't assume trust is one dimensional. Trust is not just about integrity but also about competence.

"The success of depending on someone for assistance isn't only a function of whether he or she intends to provide it," DeSteno says. "It also depends on whether he or she is capable of providing it.

"Intention matters little if ability is absent," he says.

• Know that trust decreases with power. People often treat you well in the present because they think they'll need! you in t! he future.

"As you climb up in status, your sense of how much your outcome depends on others goes down," DeSteno says. As someone's power goes up, even temporarily, the likelihood of that person acting in untrustworthy ways will go up.

Anita Bruzzeseis author of 45 Things You Do That Drive Your Boss Crazy ... and How to Avoid Them, www.45things.com. Twitter: @AnitaBruzzese.

Friday, February 7, 2014

AIG Finds a Buyer for Aircraft Leasing Group

More than two years ago, American International Group Inc. (NYSE: AIG) filed with the U.S. Securities and Exchange Commission for an initial public offering (IPO) in its aircraft leasing group, International Lease Finance Corp. (ILFC). That filing came to nothing, and AIG found little interest from buyers for ILFC, until Monday morning when it announced that AerCap Holdings N.V. (NYSE: AER) will buy the leasing operation for $3 billion in cash and 97.56 million shares of new AerCap stock. The total value of the deal is approximately $5.4 billion.

In its announcement, AIG said that it had cancelled an agreement with Jumbo Acquisition Limited for a sale of up to 90% of ILFC. Another potential buyer had turned up last December, a consortium of Chinese financial service firms that had offered to pay $4.23 billion for about 80% of ILFC, but the deal was never completed.

When AIG filed for an ILFC IPO, the insurance company was expected to sell about 20% of the leasing unit, valuing ILFC at between $8 billion and $10 billion, according to a report in the Wall Street Journal. Proceeds would have gone to repaying the $68 billion in bailout funds AIG received following the financial crisis of 2008.

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The federal government’s remaining stake in AIG was sold last December, and the bailout deal showed a net positive return of nearly $23 billion to U.S. taxpayers.

AerCap’s largest shareholder, Abu Dhabi-based Waha Capital, has agreed to vote its 26% stake in favor of the acquisition. After the transaction closes, AIG will have the right to nominate two members of AerCap’s board, and AIG has agreed to provide a five-year $1 billion revolving credit facility to the combined company.

AerCap currently has about 113.72 million shares outstanding, and AIG will have a stake of about 46% in the combined company when the transaction closes.

AIG stock was up about 1.5% in premarket trading Monday, at $50.14 in a 52-week range of $34.22 to $53.33.

AerCap’s shares were trading up about 6.3% at $26.49, well above the 52-week range of $13.37 to $24.93.

Wednesday, February 5, 2014

FINRA Plan Seeks Ć¢€˜Clearer PictureĆ¢€™ of Nonlisted REITs

The Financial Industry Regulatory Authority filed on Monday a proposal to provide more transparency in the estimated per-share value of unlisted direct participation programs and real estate investment trusts.

FINRA's proposal, filed with the Securities and Exchange Commission, would eliminate the broker-dealer practice of listing the value of nontraded REITs at $10 per share. The rule change would require BDs to factor in fees and commissions paid to them when determining the estimated share value, which would mean lower share prices.  

FINRA proposes two methodologies under which an estimated share value would be presumed reliable: net investment and independent valuation.

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The Investment Program Association, which represents nonlisted direct investment vehicles, said in a statement that it “worked tirelessly” with FINRA to revise the existing customer account statement rule “to enhance transparency and provide investors with a clearer picture of nonlisted REITs and Direct Participation Programs as they evolve.”

Presenting valuations on account statements “during the initial offering period which reflect a deduction of commissions and direct marketing fees from gross offering price represents a significant step forward in the evolution of these increasingly popular products, and the IPA supports this part of the proposal.”

However, IPA notes that its initial review of the proposal “raises a number of significant concerns,” and because of the “complexity of the rule, its importance for investors, and its potential economic impact on financial advisors, broker-dealers, and the various American industries which rely upon these investments to provide capital for their growth,” IPA believes the SEC should set the comment period at 90 days.

"The IPA believes that the significant economic impact of this proposed rule needs to be studied," says Kevin Hogan, IPA's president and CEO.

---

Check out Enforcement Roundup: Investors Win $900,000 in FINRA Arb Over Nontraded REITs on ThinkAdvisor.

Monday, February 3, 2014

Best Warren Buffett Companies To Buy Right Now

ExxonMobil (XOM) reported earnings on Oct. 31, and since then the oil giant has more than doubled the S&P 500′s return, having gained 4% to the benchmark’s 1.9% though yesterday’s close.

Agence France-Presse/Getty Images

So it’s not as if Exxon needed any help. But help it got. Bloomberg explains:

Berkshire Hathaway Inc.�reported a stake in Exxon Mobil Corp. valued at about $3.7 billion as Warren Buffett�� company disclosed its largest new holding since adding International Business Machines Corp. (IBM) in 2011.

Buffett�� company owned 40.1 million shares of Exxon on Sept. 30, Omaha, Nebraska-based Berkshire said today in a regulatory filing.

As with just about any Buffett purchases, shares of ExxonMobil have gotten a pop. They’ve gained 1.9% to $94.96, well above the S&P 500′s 0.3% gain. Exxon has also outpaced ConocoPhillips (COP), which has dropped 0.8% to $73.06 and Chevron (CVX), which has risen 0.4% to $119.99. BP (BP) is up 1.2% to $47.15.

Best Warren Buffett Companies To Buy Right Now: American Manganese Inc (AMY.V)

American Manganese Inc., a junior resources company, engages in the acquisition, exploration, and development of metals in commodity markets in Canada and the United States. The company holds interest in the Artillery Peak manganese property in Arizona; and three manganese properties in British Columbia. It also holds interest in the Rocher Deboule property, an iron-oxide-copper-gold project; and the Brent and Lonnie niobium properties in British Columbia. The company was formerly known as Rocher Deboule Minerals Corporation and changed its name to American Manganese Inc. in January 2010. American Manganese Inc. was incorporated in 1987 and is headquartered in White Rock, Canada.

Best Warren Buffett Companies To Buy Right Now: Atlantic Power Corp (AT)

Atlantic Power Corporation (Atlantic Power) owns and operates a fleet of power generation and infrastructure assets in the United States and Canada. The Company�� power generation projects sell electricity to utilities and industrial customers under long-term power purchase agreements. During the year ended December 31, 2011, its power generation projects in operation had an aggregate gross electric generation capacity of approximately 3,397 megawatts in which its ownership interest was approximately 2,140 megawatts. The Company operates in five segments: Northeast, Southeast, Northwest, Southwest and Un-allocated Corporate. As of December 31, 2011, its portfolio consisted of interests in 31 operational power generation projects across 11 states in the United States and two provinces in Canada, and a 53 megawatts biomass project under construction in Georgia and a 500-kilovolt 84-mile electric transmission line. On December 31, 2012, the Company acquired Ridgeline Energy Holdings, Inc. Advisors' Opinion:
  • [By Rich Duprey]

    Utility operator�Atlantic Power� (NYSE: AT  ) announced today that its monthly June dividend of $0.03333 Canadian per share, will be the same rate it's paid for the past three months after having slashed the payout 65% in February from $0.0958 Canadian per share.

  • [By WWW.GURUFOCUS.COM]

    Atlantic Power Corporation (AT) operates as a power generation and infrastructure company with a portfolio of assets in the United States and Canada. Yield: 10.2%

5 Best Casino Stocks To Watch Right Now: 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%.

Best Warren Buffett Companies To Buy Right Now: Fox Chase Bancorp Inc. (FXCB)

Fox Chase Bancorp, Inc. operates as the holding company for Fox Chase Bank that provides financial services to consumers and businesses in Philadelphia and New Jersey. Its deposit products include non-interest-bearing demand accounts, such as checking accounts; interest-bearing accounts, including negotiable order of withdrawal and money market accounts; savings and club accounts; brokered deposits; and certificates of deposit. The company�s loan products portfolio comprises multi-family and commercial real estate loans; one-to four-family residential real estate loans that enable borrowers to purchase or refinance existing homes; commercial and industrial loans offered to professionals, sole proprietorships, and small and mid-size businesses; construction loans comprising adjustable-rate and fixed-rate loans offered to individuals, builders, and developers to finance the construction of residential dwellings, as well as loans offered for commercial development projects, including apartment buildings, restaurants, shopping centers, schools, and other owner-occupied properties used for businesses; and consumer loans, which include home equity loans and lines of credit, loans to individuals to purchase insurance policies, loans secured by certificate of deposits, and unsecured overdraft lines of credit. It also offers cash management services. In addition, the company manages and holds investment securities; and secures, manages, and holds foreclosed real estate. It operates through 11 branches in Philadelphia, Richboro, Willow Grove, Warminster, Lahaska, Hatboro, Media, and West Chester, Pennsylvania; and Ocean City, Marmora, and Egg Harbor Township, New Jersey. The company is headquartered in Hatboro, Pennsylvania.

Advisors' Opinion:
  • [By Tim Melvin]

    To start, Seidman disclosed a position in Fox Chase Bancorp (FXCB), located in Hatboro, Pa. The bank is trading right around book value and has been a holding of mine for some time now. Me. Seidman owns a little over 5% of the bank.

Best Warren Buffett Companies To Buy Right Now: Ditech Networks Inc.(DITC)

Ditech Networks, Inc. designs, develops, and markets telecommunications equipment for use in wireline, wireless, satellite, and Internet protocol telecommunications networks worldwide. It offers voice quality enhancement solutions that enable service providers to deliver end-to-end communications to their subscribers, as well as voice applications solutions. The company?s mobile voice quality products include Broadband Voice Processor-Flex, a broadband voice processor system for interface support; Quad II T1 and Quad II E1, which are single modules for echo cancellation and built-in voice enhancement; and Quad Voice Processor-T1 and Quad Voice Processor-E1 that are narrowband voice processors for supporting echo cancellation and the suite of voice quality assurance and experience intelligence software. It also provides voice-to-text transcription services; and voice-based interface with Web and Web-based based applications, including social networking and calendar applicat ions. Ditech Networks, Inc. markets its products through direct sales force, distributors, value-added resellers, system integrators, and agents. The company was formerly known as Ditech Communications Corporation and changed its name to Ditech Networks, Inc. in May 2006. Ditech Networks, Inc. was founded in 1983 and is headquartered in Mountain View, California.

Best Warren Buffett Companies To Buy Right Now: Jardine Matheson Hldgs Ltd (J36.SI)

Jardine Matheson Holdings Limited, through its subsidiaries, engages in engineering and construction, transport services, insurance broking, property investment and development, retailing, restaurants, luxury hotels, motor vehicles and related activities, financial services, heavy equipment, mining, and agribusinesses primarily in Greater China and southeast Asia. It provides construction services; airport services, including ground handling, ground equipment maintenance, and servicing operations; engineering services in electrical, mechanical, and building technologies; port agency, liner agency, and other shipping-related services; and travel management services. The company is also involved in the operation of an air cargo terminals; IT products distribution and servicing; residential property investments; operation of a chain of Pizza Hut and KFC restaurants, and provision of pizza delivery services; sale and servicing of motor vehicles; and insurance and reinsurance b rokerage, risk management, and employee benefits consulting operations. In addition, it engages in the investment, management, and development of commercial and residential properties; operation of a network of approximately 5,400 retail outlets, including supermarkets, hypermarkets, heath and beauty stores, convenience stores, and home furnishing stores; and investment and management of a portfolio of deluxe and first class hotels and resorts. Further, Jardine Matheson Holdings Limited is involved in the manufacture, assembly, and distribution of motor vehicles, motorcycles, and components; consumer financing primarily for motor vehicles and motorcycles; insurance and banking activities; and heavy equipment sales, coal mining, oil palm plantations, infrastructure, logistics, and information technology service businesses. The company was founded in 1832 and is based in Hamilton, Bermuda. Jardine Matheson Holdings Limited operates as a subsidiary of Jardine Strategic Holdings Ltd.

Best Warren Buffett Companies To Buy Right Now: Nuveen California Select Quality Municipal Fund Inc.(NVC)

Nuveen California Select Quality Municipal Fund, Inc. is a closed-ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is managed by Nuveen Asset Management. It invests in the fixed income markets of California. The fund invests primarily in municipal securities rated Baa/BBB or better. It invests in securities that provide income exempt from federal and California income tax. The fund employs fundamental analysis with bottom-up stock picking approach to create its portfolio. It benchmarks the performance of its portfolio against the S&P California Municipal Bond Index and the S&P National Municipal Bond Index. Nuveen California Select Quality Municipal Fund, Inc. was formed on April 3, 1991 and is domiciled in the United States.

Best Warren Buffett Companies To Buy Right Now: Fuwei Films(Holdings)

Fuwei Films (Holdings) Co., Ltd., together with its subsidiaries, engages in the development, manufacture, distribution, and export of plastic film using the biaxially-oriented stretch technique in China. The company offers its biaxially oriented polyethylene terephthalate (BOPET) film under the ?Fuwei Films? brand name primarily for use in flexible packaging, printing, laminating, and aluminum-plating applications, as well as in electrical and electronic uses. Its products include printing base film used in printing and lamination applications; stamping foil base film and transfer base films used for the packaging of luxury items, such as cigarettes and alcohol; metallization film or aluminum plating base film used for vacuum aluminum plating for flexible plastic lamination; high-gloss film used for aesthetically enhanced packaging purposes; and heat-sealable film used for construction, printing, and heat sealable bags making. The company?s products also comprise laser holographic base film used as anti-counterfeit film for food, medicine, cosmetics, cigarettes, and alcohol packaging; dry film used in circuit boards production, and for nameplate and crafts etching; and heat shrinkage film used for special-shaped packaging for alcohol, cans, mineral water, and cleaning products. It exports its products to packaging customers and distributors primarily in Europe, Asia, and North America. The company was founded in 2003 and is headquartered in Weifang, China. As of May 1, 2011, Fuwei Films (Holdings) Co., Ltd. operates as a subsidiary of Weifang State-owned Assets Operation Administration Company.

Advisors' Opinion:
  • [By Adam Haigh]

    Among stocks that fell, Yue Yuen Industrial (Holdings) Ltd. (551), a supplier of shoes to Nike Inc. and Adidas AG, sank 12 percent to HK$23.80. The company said its first-quarter results showed a ��ignificant downturn��compared with a year earlier and this could adversely affect interim performance.

Best Warren Buffett Companies To Buy Right Now: Tyler Technologies Inc. (TYL)

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector with a focus on local governments in the United States and internationally. The company offers financial management solutions, including modular fund accounting systems for government agencies and not-for-profit entities; and utility billing systems to support the billing and collection of metered and non-metered services. It also provides financial management systems, such as specialized products to automate various city functions, including municipal courts, parking tickets, equipment and project costing, animal and business licenses, permits and inspections, code enforcement, citizen complaint tracking, ambulance billing, fleet maintenance, and cemetery records management; and student information systems and transportation solutions to K-12 schools, as well as software applications to manage public sector pension funds. In addition, the company offers integra ted suite of judicial solutions comprising court case management, court and law enforcement, prosecutor, and supervision systems to handle complex, multi-jurisdictional county, statewide implementations, and single county systems; systems and software to automate the appraisal and assessment of real and personal properties; tax applications for agencies that bill and collect taxes; and software applications that enable county governments to enhance and automate courthouse operations. Further, it provides subscription-based services, such as application service provider arrangements and other hosted service offerings, software subscriptions, and disaster recovery services; electronic document filing solutions for courts and law offices; professional IT services, including software and hardware installation, data conversion, training, and product modifications; and outsourced property appraisal services for taxing jurisdictions. The company was founded in 1966 and is headquart ered in Dallas, Texas.

Best Warren Buffett Companies To Buy Right Now: Galliford(GFRD.L)

Galliford Try plc operates as a house building and construction company primarily in the United Kingdom. It provides building services to the accommodation, affordable housing, arts and entertainment, commercial, custodial and judicial, education, health, hotels, refurbishment and fit out, retail, sports facilities, and stadia sectors. The company also undertakes infrastructure projects focusing on data centers, energy from waste, flood alleviation, ground engineering, infrastructure security, rail, remediation, renewable energy, roads and bridges, telecommunications, and water projects, as well as engages in the international infrastructure projects. In addition, it develops various building and infrastructure projects through public private partnerships; and provides a range of facilities management and maintenance services for organizations in the public and private sectors. Further, the company undertakes regeneration projects through partnership with the Homes and Com munities Agency. Galliford Try plc is based in Uxbridge, the United Kingdom.

Best Warren Buffett Companies To Buy Right Now: BCD Semiconductor Manufacturing Limited(BCDS)

BCD Semiconductor Manufacturing Limited, together with its subsidiaries, engages in the design, manufacture, and sale of power management analog integrated circuits (ICs). It offers a portfolio of approximately 300 products, including power management ICs in the linear, AC/DC, and DC/DC categories, as well as other ICs that control the speed of a cooling fan or detect the opening/closing of a cell phone or notebook screen. The company?s linear IC products amplify and compare analog signals or regulate a supply voltage within a tight tolerance and are used in PC motherboards, graphics cards, DVD players, modems and routers, power chargers and adapters, switching mode power supplies, LCD/LED televisions and monitors, notebook computers, cell phones, other portable electronic devices, and household appliances. Its AC/DC IC products convert an AC supply voltage into a DC voltage and are used in cell phone adapters, modem and router adapters, notebook computer adapters, switch ing mode power supplies, LCD/ LED televisions and monitors, cordless phone chargers, small appliance chargers and adapters, and PC power supplies and lighting; and DC/DC IC products convert a DC voltage into a higher or lower DC voltage and are used in LCD/LED televisions and monitors, modems and routers, WLAN cards, set-top boxes, cell phones, car chargers, and other portable electronic devices. The company also offers wafer foundry services directly to end customers through foundry service agreements. BCD Semiconductor Manufacturing Limited sells its products to the computing, consumer, and communications electronics OEM and ODM customers primarily through a regional network of independent distributors. The company offers its products primarily in the People?s Republic of China, Hong Kong, Taiwan, South Korea, and North America. BCD Semiconductor Manufacturing Limited was founded in 2000 and is headquartered in Shanghai, the People?s Republic of China.

Best Warren Buffett Companies To Buy Right Now: United Industrial Corp Ltd (U06.SI)

United Industrial Corporation Limited, an investment holding company, engages in the development of and investment in properties in Singapore and China. It operates in four segments: Property Investment, Property Trading, Hotel Operations, and Technologies. The Property Investment segment leases commercial office property; provides property management services; and invests in retail centers. The Property Trading segment develops properties for trading. The Hotel Operations segment operates hotels and restaurants. The Technologies segment distributes computers and related products; and provides systems integration and networking infrastructure services. The company also operates food courts. The company was incorporated in 1963 and is based in Singapore.

Best Warren Buffett Companies To Buy Right Now: Oi SA (OIBR)

Oi S.A., formerly Brasil Telecom S.A., incorporated on November 27, 1963, is a telecommunication service provider in Region II in Brazil. The Company offers a range of integrated telecommunication services that includes fixed-line and mobile telecommunication services, data transmission services (including broadband access services), Internet service provider (ISP) services and other services, for residential customers, small, medium and large companies, and governmental agencies. The Company provides services, which include Fixed-Line Telecommunications Services and Data Transmission Services, Mobile Telecommunications Services and other services.

Local Fixed-Line Services

As of December 31, 2010, the Company had approximately 7.2 million local fixed-line customers in Region II. Local fixed-line services include installation, monthly subscription, metered services, collect calls and supplemental local services. Metered services include local calls that originate and terminate within a single local area. ANATEL has divided Region II into 1,772 local areas. Local fixed-line services also include in-dialing services (direct transmission of external calls to extensions) for corporate clients. For corporate clients in need of lines, the Company offers digital trunk services, which optimize and increase the speed of the customer�� telephone system.

Long-Distance Services

The long distance services include fixed line-to-fixed line and mobile long distance services. It provides domestic long-distance services for calls originating from Region II through interconnection agreements, mainly with Telemar in Region I and Telecomunicavoes de Sao Paulo S.A. (Telesp), in Region III permit the Company to interconnect directly with their local fixed-line networks, and through its network facilities in Sao Paulo, Rio de Janeiro and Belo Horizonte. It provides international long-distance services originating from Region II through agreements to interconnect its netw! ork with those of the main telecommunication service providers worldwide. It provides mobile long-distance services originating from Region II through interconnection agreements, with Telemar in Region I, Telesp in Region III, and each of the principal mobile services providers operating in Brazil that permit it to interconnect directly with their local fixed-line and mobile networks. It provides international long-distance services originating or terminating on its customer�� mobile handsets through agreements to interconnect its network with those of the main telecommunication service providers worldwide.

Mobile Telecommunication Services

As of December 31, 2010, the Company had approximately 7.8 million subscribers located in 1,281 municipalities in Region II. As of December 31, 2010, 87.5% of the Company�� customers subscribed to pre-paid plans and 12.5% subscribed to post-paid plans. The Company markets Oi Ligador subscriptions to its pre-paid customers, which allow these customers to receive bonus minutes with each purchase of additional credits. It charges a nominal subscription fee to enroll a customer in the Oi Ligador program and provide bonus minutes to these customers that may be used for local calls to its fixed-line or mobile subscribers, long-distance calls to its fixed-line subscribers, and sending Short Message Service (SMS, messages to mobile subscribers of any Brazilian mobile service provider.

The Company has roaming agreements with TNL PCS S.A., a wholly owned subsidiary of Telemar which provides mobile services and which it refers to as Oi, Companhia de Telecomunicacoes do Brasil Central (CTBC), and Sercomtel S.A. Telecomunicacoes (Sercomtel), providing its customers with automatic access to roaming services when traveling outside of Region II in areas of Brazil where mobile telecommunication services are available on the GSM standard. As of December 31, 2010, it had launched third generation (3G) services in a total of 84 municipalities, ! including! the nine state capitals in Region II and the Federal District. As of December 31, 2010, it had approximately 175,200 3G mobile broadband customers.

Data Transmission Services

The Company provides Internet access services using ADSL technology, which it refers as broadband services, to residential customers and businesses in the primary cities in Region II under the brand name Oi Velox. As of December 31, 2010, the Company offered broadband services in 1,810 municipalities in Region II and it had 1.9 million ADSL customers. Its network supports ADSL2+, VDSL2 and FTTx technologies. ADSL2+ is a data communications technology that allows data transmission at speeds of up to 24 megabits per second downstream and 1 megabits per second upstream. ADSL2+ permits offer a range of services than ADSL, including Internet protocol television (IPTV). As of December 31, 2010, approximately 50% of its fixed-line network had been updated to support ADSL2+. Very-high-bitrate digital subscriber line (VDSL2), is a DSL technology providing faster data transmission, up to 100 megabits per second upstream (downstream and upstream). Fiber to the x (FTTx), is a broadband network architecture that uses optical fiber to replace all or part of the usual metal local loop used for last mile telecommunications.

The Company provides a range of data transmission services through various technologies and means of access. Its commercial data transmission services include Industrial Exploitation of Dedicated Lines (Exploracao Industrial de Linha Dedicada (EILD)), under which it leases trunk lines to other telecommunication services providers, primarily mobile services providers, which use these trunk lines to link their radio base stations to their switching centers; Dedicated Line Services (Servicos de Linhas Dedicadas (SLD)), under which it leases dedicated lines to other telecommunication services providers, Internet service providers (ISPs) and corporate customers for use in private networks that! link dif! ferent corporate Websites; Internet Protocol (IP) services, which consist of dedicated private lines and dial-up Internet access, which it provides to the ISPs in Brazil, as well as Virtual Private Network (VPN), services that enable its customers to operate private Intranet and extranet networks, and frame relay services, which the Company provides to its corporate customers to allow them to transmit data using protocols based on direct use of its transmission lines, enabling the creation of VPNs.

The Company provides these data transmission services using its service network platform in Region II and its nationwide fiber optic cable network and microwave links. In addition, it provides services at the six cyber data centers located in Brasilia, Sao Paulo, Curitiba, Porto Alegre and Fortaleza. It provides hosting, collocation and information technology (IT) outsourcing at these centers, permitting its customers to outsource their IT structures to it or to use these centers to provide backup for their IT systems. It also owns and operates a submarine fiber optic network, which connects Brazil with the United States, Bermuda, Venezuela and Colombia. Through this network, it offers international data transportation services, primarily leased lines to other telecommunication services providers.

Network Usage Services (Interconnection Service)

The Company is authorized to charge for the use of its local fixed-line network on a per-minute basis for all calls terminated on its local fixed-line network in Region II that originate on the networks of other local fixed-line, mobile and long-distance service providers, and all long-distance calls originated on its local fixed-line network in Region II that are carried by other long-distance service providers. In addition, the Company charges network usage fees to long-distance service providers and operators of trunking services that connect switching stations to its local fixed-line networks.

Traffic Transporta! tion Serv! ices

The Company offers a long-distance usage service, called national transportation, under which it provides discounts to its long-distance network usage fees based on the volume of traffic and geographic distribution of calls generated by a long-distance or mobile services provider. The Company also offers international telecommunication service providers the option to terminate their Brazilian inbound traffic through its network, as an alternative to Embratel and Intelig Telecomunicacoes Ltda. (Intelig). The Company charges international telecommunication service providers a per-minute rate, based on whether a call terminates on a fixed-line or mobile telephone and the location of the local area in which the call terminates.

Public Telephone Services

The Company owns and operates public telephones throughout Region II. As of December 31, 2010, the Company had approximately 266,100 public telephones in service, which are operated by pre-paid cards.

Value-Added Services

Value-added services include voice, text and data applications, including voicemail, caller identification (ID), and other services, such as personalization (video downloads, games, ring tones and wallpaper), short message service (SMS)subscription services (horoscope, soccer teams and love match), chat, mobile television, location-based services and applications (mobile banking, mobile search, email and instant messaging). The Company also provides advanced voice services to its corporate customers, mainly 0800 (toll free) services, as well as voice portals where customers can participate in real-time chats and other interactive voice services. The Company also operates an Internet portal under the brand name iG.

The Company competes with Empresa Brasileira de Telecomunicacoes, GVT S.A., Vivo Participacoes S.A., Telecom Americas Group, TIM Participacoes S.A., Telesp and Intelig.

Advisors' Opinion:
  • [By alicet236]

    Oi SA (OIBR) Reached the Five-Year Low of $1.63

    The prices of Oi SA (OIBR) shares have declined to close to the five-year low of $1.63, which is 87.6% off the five-year high of $11.48. Oi SA is owned by three Gurus we are tracking. Among them, zero have added to their positions during the past quarter. 3 reduced their positions. Oi SA is a telecommunication service providing company in Brazil. Oi Sa has a market cap of $2.67 billion; its shares were traded at around $1.63 with a P/E ratio of 4.50 and P/S ratio of 0.14. The dividend yield of Oi Sa stocks is 23.36%. Oi Sa had an annual average earnings growth of 10.00% over the past 10 years.

  • [By Roberto Pedone]

    Oi (OIBR), through its subsidiaries, provides integrated telecommunication services for residential customers, companies and governmental agencies in Brazil. This stock closed up 8.6 % to $1.89 in Thursday's trading session.

    Thursday's Range: $1.73-$1.91

    52-Week Range: $1.44-$4.69

    Thursday's Volume: 5.48 million

    Three-Month Average Volume: 3.91 million

    From a technical perspective, OIBR bounced sharply higher here back above its 50-day moving average of $1.83 with heavy upside volume. This move is quickly pushing shares of OIBR within range of triggering a near-term breakout trade. That trade will hit if OIBR manages to take out some near-term overhead resistance levels at $1.94 to $2.29 with high volume.

    Traders should now look for long-biased trades in OIBR as long as it's trending above its 50-day at $1.83 or above more key near-term support at $1.72 and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.91 million shares. If that breakout triggers soon, then OIBR will set up to re-test or possibly take out its next major overhead resistance levels at $2.44 to its 200-day at $3.06.

  • [By Roberto Pedone]

    Oi (OIBR) provides telecommunication services in Brazil. This stock closed up 1.6% to $1.87 in Tuesday's trading session.

    Tuesday's Range: $1.83-$1.89

    52-Week Range: $1.42-$4.51

    Tuesday's Volume: 2.61 million

    Three-Month Average Volume: 4.32 million

    From a technical perspective, OIBR rose modestly higher here right above its 50-day moving average of $1.72 with lighter-than-average volume. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $1.42 to its intraday high of $1.89. During that move, shares of OIBR have been consistently making higher lows and higher highs, which is bullish technical price action. That move is quickly pushing shares of OIBR within range of triggering a near-term breakout trade. That trade will hit if OIBR manages to take out some near-term overhead resistance levels at $1.89 to $2.04 with high volume.

    Traders should now look for long-biased trades in OIBR as long as it's trending above its 50-day at $1.72 or above more support at $1.60 and then once it sustains a move or close above those breakout levels with volume that's near or above 4.32 million shares. If that breakout hits soon, then OIBR will set up to re-test or possibly take out its next major overhead resistance levels at $2.25 to $2.29. Any high-volume move above those levels will then give OIBR a chance to tag $2.50 to $2.75.

Best Warren Buffett Companies To Buy Right Now: Vulcan Materials Company(VMC)

Vulcan Materials Company engages in the production and sale of construction aggregates, as well as asphalt mix, ready-mixed concrete, and cement primarily in the United States. The company operates in four segments: Aggregates, Concrete, Asphalt Mix, and Cement. The Aggregates segment produces construction aggregates, which principally include crushed stone, sand, and gravel. Its aggregates are used in public and private sector construction projects, including highways, airports, water and sewer systems, industrial manufacturing facilities, and residential and nonresidential buildings, as well as railroad track ballast. The Concrete segment produces and sells ready-mixed concrete in California, Florida, Georgia, Maryland, Texas, Virginia, and the District of Columbia; and block and pre-cast beams, as well as resells purchased building materials for use with ready-mixed concrete and concrete block. The Asphalt Mix segment produces and sells asphalt mix in Arizona, Californi a, and Texas. The Cement segment produces and sells Portland and masonry cement in bulk and bags to the concrete products industry. This segment also imports cement, clinker, and slag to resell and export, as well as to blend, bag, or reprocess into specialty cements. In addition, this segment mines, produces, and sells calcium products for the animal feed, paint, plastics, water treatment, and joint compound industries. The company was formerly known as Virginia Holdco, Inc. and changed its name to Vulcan Materials Company in November 2007. Vulcan Materials Company was founded in 1909 and is headquartered in Birmingham, Alabama.

Advisors' Opinion:
  • [By Ben Levisohn]

    Shares of Vulcan Materials (VMC) have surged today after the sand and gravel maker reported better-than-forecast earnings driven by sales of concrete and cement.

    Getty Images

    Shares of Vulcan have gained 7.6%, and given a lift to other cement makers today, including Martin Marietta Materials (MLM), which has risen 4.9% and reports earnings on Thursday, Cemex (CX), which has advanced 1.5%, and Texas Industries (TXI), which is up 4.9%.

    The Associated Press has the details on Vulcan’s earnings beat:

    For the three months ended Sept. 30, Vulcan Materials Co. earned $41.4 million, or 31 cents per share. Last year, it earned $14.3 million, or 11 cents per share.

    The 2012 third quarter was weighed down by some restructuring charges and exchange offer costs. The recent quarter did not have any of these charges or costs.

    The latest quarter also benefited from a bigger gain on the sale of property, equipment and other items than a year ago.

    Earnings from continuing operations were 32 cents per share for the recent quarter.

    Revenue increased 13 percent to $775.2 million from $687.6 million.

    Analysts, on average, expected earnings of 26 cents per share on revenue of $750.7 million, according to FactSet.

    Sterne Agee’s Todd Vencil and�Kevin Bennett hone in on pricing:

    Pricing wasn�� quite as strong as management had guided, but we don�� think that is an indication of negative demand trends…

    We’re not concerned that the relative softness in price growth represents a negative indicator for demand. A number of factors, including shifts in geographic and product mix, could easily account for the change…

    And by the looks of things, neither are investors.

  • [By Eric Volkman]

    Vulcan Materials (NYSE: VMC  ) has elected to maintain its dividend. The company declared a quarterly common stock distribution of $0.01 per share, to be paid on Sept. 10 to shareholders of record as of Aug. 28. That amount matches each of the company's disbursements stretching back to December 2011.

  • [By Dan Caplinger]

    Even now, though, it's far from clear whether the recent rebound has staying power. Earlier this month, peer Vulcan Materials (NYSE: VMC  ) reported 5% lower shipments of aggregates, although rising prices helped offset the impact, and the company noted double-digit-percentage increases in shipments to hot housing areas including Arizona, California, and Florida. Similarly, Cemex (NYSE: CX  ) posted a substantial loss for its March quarter on with 5% lower revenue, but the Mexican company pointed to strength in the U.S. and Asian markets as offsetting weakness in Mexico, Europe, and Latin America.

  • [By Lu Wang]

    Vulcan Materials Co. (VMC), an asphalt and cement supplier, is projected to return to profitability for the first time since 2009, according to analysts��estimates compiled by Bloomberg. Federal spending on highway construction has risen 11 percent this year, reaching the highest level since 2010, according to Bloomberg Industries research.

Best Warren Buffett Companies To Buy Right Now: Diamonds North Resources (DDN.V)

Diamonds North Resources Ltd., an exploration stage company, engages in the acquisition and exploration of mineral properties in Canada. The company explores for diamonds, gold, nickel, copper, and silver ores. Its principal properties are located in Nunavut and the Northwest Territories. The company primarily focuses on the Amaruk property that comprises the Ekati and Diavik diamond mines covering approximately 971,000 acres located in the Pelly Bay diamond district of eastern Nunavut. Diamonds North Resources Ltd. was incorporated in 2002 and is headquartered in Vancouver, Canada.