Best House Insurance 2013: April 2014

Monday, April 28, 2014

Hot Media Companies To Watch In Right Now

With just a few peaks in trading breaking the barrier between gains and losses today, American International Group (NYSE: AIG ) is set to close with a mild loss of 0.13%. The insurer and its investors have a few new variables to consider before the close of the week, and though some are not immediate pressures, it could make a big difference for the company in the long term.

Failure to mediate
Monday kicked off the renewed Article 77 hearing for Bank of America's (NYSE: BAC ) settlement with investors over mortgage-backed securities. Of course, AIG has been the loudest critic of the settlement, citing a similar case that was resolved with insurer MBIA (NYSE: MBI ) that received $0.60 on the dollar, when the current $8.5 billion price tag from B of A is just a fraction of that. Investors may be concerned that the recent refusal of mediation between the parties by B of A signals that the bank firmly believes a decision will be made in its favor -- thus signaling a loss for the insurer. As the hearing moves on, be sure to watch out for new signs that the deal will be approved. Though it may not end up being big enough to suit AIG, some money to recoup losses is better than none.

Hot Media Companies To Watch In Right Now: Gannett Co. Inc. (GCI)

Gannett Co., Inc. operates as a media and marketing solutions company in the United States and internationally. Its Publishing segment publishes 83 U.S. daily newspapers with affiliated online sites, including USA TODAY, a national, general-interest daily newspaper; USATODAY.com; USA WEEKEND, a magazine supplement for newspapers; Clipper Magazine, a direct mail advertising magazine; bi-weekly Nursing Spectrum and NurseWeek periodicals; and military and defense newspapers. This segment also includes 17 paid-for daily newspapers; approximately 200 weekly newspapers, magazines, and trade publications; and approximately 600 non-daily publications, as well as involves in commercial printing, newswire, marketing, and data services operations. The company?s Digital segment owns and operates CareerBuilder, an employment Web site, which offers online recruitment and career advancement services for employers, employees, recruiters, and job seekers; ShopLocal, which provides multicha nnel shopping and advertising services; Planet Discover, which offers hosted search and advertising services; PointRoll, which provides digital marketing services and technology; and Schedule Star, which offers scheduling solution for high school athletic departments. Its Broadcasting segment operates 23 television stations and affiliated Web sites, which produce local programming, such as news, sports, and entertainment programming. This segment also includes Captivate Network, a national news and entertainment network that delivers programming and full-motion video advertising on video screens located in elevators of office towers and select hotel lobbies in North America. The company has strategic business relationships with online affiliates, including Classified Ventures, ShopLocal.com, Topix, and Metromix LLC, as well as strategic marketing agreement with Microsoft. Gannett Co., Inc. was founded in 1906 and is headquartered in McLean, Virginia.

Advisors' Opinion:

[By Seth Jayson]
Gannett (NYSE: GCI ) reported earnings on July 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Gannett missed estimates on revenues and missed slightly on earnings per share.
[By The Part-time Investor]
The following stocks met the criteria in January of 2008 and were put into the initial portfolio:
Abbot Labs (ABT)Advanced data processing (ADP)Associated Banc-Corp (ASBC)Bank of America (BAC)BB&T Corp. (BBT)Bemis Company (BMS)Anheuser Busch (BUD)The Chubb Corporation (CB)Clorox (CLX)Comerica Inc. (CMA)Diebold Inc. (DBD)Emerson Electronics (EMR)First Dollar Corp. (FDO)First Third BanCorp. (FITB)Gannett Co, Inc. (GCI)General Electric (GE)Hershey (HSY)Illinois Tools Works (ITW)Johnson and Johnson (JNJ)Leggett and Platt (LEG)Eli Lilly (LLY)La-Z-Boy (LZB)McDonald's (MCD)Marsh and Ilsley (MI)M&T Bancorp (MTB)PepsiCo (PEP)Pfizer (PFE)Procter & Gamble (PG)Pentair Ltd. (PNR)Regions Financial Corp. (RF)Rohm and Haas (ROH)RPM International (RPM)Sherwin Williams (SHW)Sysco Corp. (SYY)UDR Inc. (UDR)
Historical quotes were taken from Yahoo Finance. $10,000 was put into each position, to the nearest whole share, so a total of $349,262.89 was invested. From 1/15/08 through 5/16/13 all dividends were reinvested back into the stock that paid them. If a dividend cut was announced, that stock was sold on the ex-div date of the new, lower dividend.
[By Mike Deane]
Early on Monday morning, Gannett (GCI) had its price target raised to $35 from $34 at FBR Capital. The ratings company also affirmed that Gannett is a “Top Pick.”�

Gannett, a publishing and broadcasting company that operates in the U.S. and the U.K., currently has a price of $29.76, and FBR’s new target suggests an 18% upside.

FBR analyst William Bird had the following comments about GCI’s PT raise: “Based on our analysis, we estimate that Gannett’s spectrum is worth approximately $2.2 billion, or $9 per share, roughly doubling in value from the�acquisition�of BLC (i.e., pre-deal valuation of ~$1.1 billion). Separately, we are lowering our 2014 EPS estimate by $0.07 to reflect the previously announced sale of three stations to MDP (note: an expected midyear close means that the stations will not be in operating results from January 1, but the proceeds will not be received until midyear). We are increasing our price target to $35 from $34 to reflect shareholder accretion from the sale. We like Gannett’s improving business mix, growth profile, and ability to drive growth with its own propeller through higher retrans, synergies, and potential TV acquisitions.”

Gannett stock was inactive in pre-market trading. So far this year, the company’s stock is up 0.61%.
[By Rich Duprey]
Here's something no one ever said: We don't see enough daily sports coverage, so we need a new website dedicated to cover it.�Yet USA Today, the�Gannett� (NYSE: GCI ) newspaper dedicated to giving you national news in bite-size snippets and graphics, is launching a new website dedicated to just that. Calling it "For The Win," it expects the new division to attract fans inside and out of sports.

Hot Media Companies To Watch In Right Now: Charter Communications Inc.(CHTR)

Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. The company offers cable video programming services, such as basic and digital video, premium channels, OnDemand, pay-per-view, high definition television, digital video recorder, and online video services; Internet services; Charter.net, which provides multiple e-mail addresses, as well as various entertainment, games, news, and sports content; and telephone services. It also provides broadband communications solutions, such as Internet access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment services, and business telephone services under the Charter Business brand name to business and carrier organizations. As of December 31, 2011, the company served approximately 4.1 million video customers; approximately 3.5 million Internet customers; appr oximately 1.7 million telephone customers; and approximately 476,200 commercial primary service units. Charter Communications, Inc. was founded in 1999 and is based in St. Louis, Missouri.

Advisors' Opinion:

[By James E. Brumley]
The cable-television M&A chatter is making its rounds again, this time with Charter Communications, Inc. (NASDAQ:CHTR), Time Warner Cable Inc. (NYSE:TWC), and Comcast Corporation (NASDAQ:CMCSA) pegged as the three points of the ever-changing parties of a never-ending love triangle. The buzz is, well, was that CHTR was first in line to nab TWC. Today, however, it's starting to look like CMCSA is more seriously interested in Time Warner Cable than first thought. TWC shares jumped on the doubly-good news that it may well become the prize in a bidding war between Charter Communications and Comcast Corporation. Meanwhile, CMCSA shares have jumped (albeit not quite as firmly) on the prospect of its ownership of TWC. What's interesting - and perhaps telling - is the fact that not only have CHTR shares not soared in the wake of what would normally be viewed as good news, but Charter shares have actually stumbled heading into the possible bidding war. Might this be an omen of what's actually in store for Charter Communications?
[By Tim Brugger]
Time Warner Cable (NYSE: TWC ) , Comcast, and Charter Communications (NASDAQ: CHTR ) , have all been on the other side of the Internet subscriber fence. Phone companies such as AT&T�and Verizon began losing customers to these and other cable Internet providers some time ago, largely because of speed and connectivity issues. And now along comes Google Fiber with an alternative that blows the doors off anything Comcast, Time Warner, or Charter can offer, and often for the same or less money. If the cable industry isn't worried, it should be.
[By James Miller Phd]
The company has a current ratio of 13.05% which is higher than the one registered by Charter Communications Inc. (CHTR), Digital Globe Inc. (DGI), EchoStar Corp (SATS), Gilat Satellite Networks Ltd. (GILT) and Intelsat SA (I).

5 Best Solar Stocks To Watch Right Now: Time Warner Cable Inc(TWC)

Time Warner Cable Inc., together with its subsidiaries, operates as a cable operator in the United States. It offers video, high-speed data, and voice services over its broadband cable systems to residential and commercial customers. The company provides a range of video services, including on-demand, high-definition (HD), and digital video recorder (DVR) services; residential high-speed data services with connection to the Internet; wireless mobile broadband Internet services; and digital phone services to residential customers. It offers video programming tiers and music services; high-speed data, networking, and transport services; and commercial digital phone service to small and medium-sized businesses under the Time Warner Cable Business Class brand. Further, Time Warner Cable Inc. sells advertising to various national, regional, and local customers. As of June 30, 2011, the company served approximately 14.5 million residential and commercial customers in the New Yor k State, the Carolinas, Ohio, southern California, and Texas. Time Warner Cable Inc. is based in New York, New York.

Advisors' Opinion:

[By Evan Niu, CFA]
In comparison, Comcast (NASDAQ: CMCSA ) has 18.3 million broadband subscribers, AT&T (NYSE: T ) has 16.4 million, Time Warner Cable (NYSE: TWC ) boasts 10.9 million, and Verizon (NYSE: VZ ) enjoys 8.8 million subscribers.
[By WALLSTCHEATSHEET]
Time Warner Cable provides entertainment, voice, and high-speed data services to a growing customer base in the United States. The company’s�shareholders may give incoming Chief Executive Officer Rob Marcus the will to reject a $62 billion offer for the company. The stock has seen a consistent uptrend in the last few years and is currently trading sideways. Over the last four quarters, earnings have been mixed while revenues have been rising which has left investors happy about recent earnings announcements. Relative to its peers and sector, Time Warner Cable has been a relative year-to-date performance leader. Look for Time Warner Cable to OUTPERFORM.
[By WALLSTCHEATSHEET]
Time Warner Cable provides entertainment, voice, and high-speed data services to a growing customer base in the United States. The company chairman and CEO Rob Marcus has drawn a $160-per-share line in the sand. The stock has been moving higher over the past several years, but is currently trading sideways. Over the last four quarters, earnings have been mixed while revenues have been rising which has produced conflicting feelings among investors. Relative to its peers and sector, Time Warner Cable has been an average year-to-date performer. WAIT AND SEE what Time Warner Cable does this quarter.

Hot Media Companies To Watch In Right Now: Thomson Reuters Corp(TRI)

Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. The company allows market participants to connect, access content, and trade in a secure environment through Thomson Reuters Eikon desktop, Thomson Reuters Elektron network, content integration and management technology, content feeds and databases, and transactions infrastructure solutions that support buy- and sell-side customers to trade in foreign exchange, fixed income and derivatives, equities, exchange-traded instruments, and commodities and energy markets. It also offers information, analytics, workflow, and technology solutions to buy-side and off-trading floor customers; access to liquidity in over-the-counter markets, trade execution, and connections for market participants and financial professionals? communities; and a suite of solutions offering informed outcomes to regulated industries and law firms. In addition, the company provides critical information , decision support tools, and software and services to legal, investigation, business, and government professionals; integrated tax compliance and accounting software and services for accounting and law firms, corporations, and government professionals; intellectual property and scientific resources that enable its customers to discover, develop, and deliver innovations; and data analytics, and performance benchmarking solutions and services to healthcare sector. Further, it offers coverage of global, regional, and national news in 20 languages covering politics, business, finance, entertainment, lifestyle, technology, health, science, and sports; and engages in advertising-supported direct-to-consumer publishing activities of Reuters.com and its network of Websites, mobile applications, and electronic out-of-home displays. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. The company is headquartered in New York, New York.

Advisors' Opinion:

[By Monica Wolfe]
Thomson Reuters (TRI)

On Feb. 11, Thomson Reuters declared a dividend of $0.330 per share, representing 3.80% dividend yield for the company. This dividend is payable on March 17 to shareholders of the record at the close of business on Feb. 24, 2014.
[By Associated Press]
Ron Brown, head of Elektron Analytics, a Thomson Reuters (NYSE: TRI ) unit that sells news feeds that computers can read, said that the words "explosions" or "Obama" alone wouldn't have triggered selling. But add "White House," and it's a combination even the slowest computer couldn't miss.
[By Jonas Elmerraji]
It's been a solid year for Thompson Reuters (TRI); since the calendar flipped over to January, this $30 billion financial media firm has rallied more than 22%. But don't worry if you've missed out on the move -- TRI looks well-positioned for higher levels thanks to the pattern that's been setting up in shares.

Thompson Reuters is currently forming an ascending triangle pattern, a bullish setup that's formed by horizontal resistance above shares at the $35.50 level and uptrending support to the downside. Basically, as TRI bounces in between those two technically-important price levels, it's getting squeezed closer and closer to a confirmed breakout above that $35.50 price level. When the breakout happens, it's time to be a buyer.

TRI closed above the $35.50 level in yesterday's session, but it's a little early to call it a breakout just yet. If shares can hold above that breakout level all through today's session, then the buy signal is worth heeding.
[By Bill Smith]
FDS operates in a highly competitive industry, some with more resources. Their competitors include:
Thomson Reuters Corp. (TRI)BloombergInteractive (IDC)MSCI Inc. (MXB)Morningstar Inc. (MORN)Track Data Corp. (TRAC)Edgar Online (EDGR)McGraw-Hill (MHP )

Hot Media Companies To Watch In Right Now: DIRECTV(DTV)

DIRECTV provides digital television entertainment in the United States and Latin America. The company provides direct-to-home (DTH) digital television services, as well as multi-channel video programming distribution services in the United States. It offers various channels of digital-quality video entertainment and CD-quality audio programming directly to subscribers' homes or businesses, as well as video-on-demand services; and approximately 160 national high-definition television channels and 4 3D channels. The company also provides premium professional and collegiate sports programming, such as the NFL SUNDAY TICKET package, which allows subscribers to view the NFL games. In addition, it offers DTH digital television services in Latin America and the Caribbean, including Puerto Rico. The company provides its local and international programming under the DIRECTV and SKY brand names. As of December 31, 2010, it served approximately 19.2 million subscribers in the United States; and 8.9 million subscribers in Latin America. The company was founded in 1990 and is based in El Segundo, California.

Advisors' Opinion:

[By Chris Hill]
Yahoo! (NASDAQ: YHOO ) spent $1.1 billion on social media site Tumblr last week. This week, it is reportedly bidding for Hulu. It is also supposedly competing with DirecTV (NASDAQ: DTV ) and Time Warner Cable (NYSE: TWC ) . Hulu has 4 million subscribers and brought in $695 million in revenue in 2012. What would a Hulu acquisition mean for Yahoo! shareholders? In this installment of MarketFoolery, our analysts discuss the deal.
[By Doug Ehrman]
DIRECTV (NASDAQ: DTV ) stock surged when the company announced earnings results earlier this week, easily beating analyst estimates and highlighting the importance of sports programming to TV providers in driving revenues and profits. In the earnings call that followed the release, CEO Mike White was cagey about the future of the company's relationship with the NFL that costs about $1 billion per year and is set to expire in 2015. The market reacted well to the news, driving up DIRECTV stock by nearly 7% on the news, and allowing it to reach its highest level in a decade.
[By GURUFOCUS]
Three holdings have been among the largest positive contributors for both the quarter and the first half. DIRECTV (DTV) advanced 9% over the last three months and has risen 23% YTD. We have owned DTV for over eight years as its value has grown along with its price. CEO Mike White is one of our "all-star" partners. He and his team have grown ARPU (average revenue per user) for the company's 20 million U.S. satellite subscribers even as the industry has matured. Management has also made high-return investments in Latin America where subscribers have grown rapidly, making this geographic segment almost half of our DTV appraisal. Management consistently has returned capital to owners through repurchasing undervalued shares, including $1.4 billion in the second quarter.
[By WALLSTCHEATSHEET]
DirecTV is a digital television entertainment company that offers satellite services to consumers and companies across the nation. The company is attempting to jointly acquire Hulu in order to expand its offerings and user base. The stock has been trending higher for the last several years and is now trading near all-time high prices. Over the last four quarters, investors in the company have been excited as earnings and revenue figures have been steadily rising. Relative to its peers and sector, DirecTV is a year-to-date performance leader. Look for DirecTV to continue to OUTPERFORM.

Hot Media Companies To Watch In Right Now: News Corporation(NWSA)

News Corporation operates as a diversified media company worldwide. Its Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, and movie programming for distribution through cable television systems and direct broadcast satellite operators primarily in the United States, Latin America, Europe, and Asia. The company?s Filmed Entertainment segment produces and acquires live-action and animated motion pictures for distribution and licensing in entertainment media, as well as produces and licenses television programming worldwide. Its Television segment operates 27 broadcast television stations in the United States. The company?s Direct Broadcast Satellite Television segment distributes programming services via satellite and broadband directly to subscribers in Italy. Its Publishing segment provides newspapers and information services, such as publishing national newspapers in the United Kingdom, approximately 146 newspapers in Australia, and a metropolitan and a national newspaper in the United States; book publishing services, including the publishing of English language books worldwide; and integrated marketing services comprising the publishing of free-standing inserts, which are marketing booklets containing coupons, rebates, and other consumer offers, as well as provides in-store marketing products and services, primarily to consumer packaged goods manufacturers in the United States and Canada. The company also sells advertising, sponsorships, and subscription services on the company?s various digital media properties and outdoor advertising space on various media primarily in Russia and eastern Europe; and provides data systems and professional services that enable teachers to use data to assess student progress and deliver individualized instructions. News Corporation was founded in 1922 and is headquartered in New York, New York.

Advisors' Opinion:

[By John Kell and Lauren Pollock var popups = dojo.query(".socialByline .popC"); ]
News Corp(NWSA) acquired Handpicked Cos., a luxury-shopping website in the U.K., continuing the newspaper publisher’s push into new online tools and resources. Handpicked, which launched its website in 2007, sells home decor, children’s toys and gifts. News Corp said the site’s offerings will be promoted through two of News Corp’s U.K. publications, The Times and The Sunday Times.

Hot Media Companies To Watch In Right Now: Comcast Corporation(CMCSA)

Comcast Corporation, together with its subsidiaries, provides entertainment, information, and communications products and services in the United States and internationally. Its Cable Communications segment provides video, high-speed Internet, and phone services to residential and business customers. As of June 30, 2011, its cable systems served approximately 22.5 million video customers, 17.5 million high-speed Internet customers, and 9.1 million phone customers. The company?s Cable Networks segment operates cable entertainment networks, such as USA Network, Syfy, E!, Bravo, Oxygen, Style, G4, Chiller, Sleuth, and Universal HD; news and information networks, including CNBC, MSNBC, and CNBC World; cable sports networks comprising Golf Channel and VERSUS; regional sports and news networks; international entertainment, and news and information networks, such as CNBC Europe, CNBC Asia, and Universal Networks International portfolio of networks; cable television production oper ations; and digital media properties consisting primarily of brand-aligned Websites and other Websites, such as DailyCandy, Fandango, and iVillage. Its Broadcast Television segment operates the U.S. broadcast networks, NBC and Telemundo; 10 NBC and 15 Telemundo owned local television stations; broadcast television productions; and related digital media properties. The company?s Filmed Entertainment segment operates Universal Pictures, which produces, acquires, markets, and distributes filmed entertainment and stage plays worldwide in various media formats for theatrical, home entertainment, television, and other distribution platforms. Its Theme Parks segment operates Universal Studios Hollywood park and Wet ?n Wild water park, as well as licenses intellectual properties and provides services to third parties that own and operate Universal Studios Japan and Universal Studios Singapore. Comcast Corporation was founded in 1963 and is based in Philadelphia, Pennsylvania.

Advisors' Opinion:

[By Marc Bastow]
Information, entertainment, and cable provider Comcast (CMCSA) raised its quarterly dividend 15.4% to 22.5 cents per share, payable on Apr. 23 to shareholders of record as of Apr. 2.
CMCSA Dividend Yield: 1.67%

Hot Media Companies To Watch In Right Now: DISH Network Corporation(DISH)

DISH Network Corporation, through its subsidiaries, provides direct broadcast satellite (DBS) subscription television services in the United States. It offers programming that includes approximately 280 basic video channels, 60 Sirius satellite radio music channels, 30 premium movie channels, 35 regional and specialty sports channels, 2,800 local channels, 250 Latino and international channels, and 55 channels of pay-per-view content. The company also offers local HD channels in approximately 160 markets and 215 national HD channels; and receiver systems, including a small satellite dish, digital set-top receivers, and remote controls. In addition, it provides DISHOnline.com, which enables DISH Network subscribers to watch 150,000 movies, television shows, clips, and trailers; DISH Remote Access that enables subscribers to remotely manage their DVRs using compatible mobile devices, such as smartphones, tablets, and laptops through their broadband-connected receiver; and Go ogle TV that enables DISH Network subscribers to search the Internet, check email, interact with social media, and find additional online programming content while simultaneously watching television. As of March 31, 2011, the company had approximately 14.191 million customers. DISH Network provides receiver systems and programming through direct sales channels; and independent third parties, such as small satellite retailers, direct marketing groups, local and regional consumer electronics stores, nationwide retailers, and telecommunications companies. The company was founded in 1980 and is headquartered in Englewood, Colorado.

Advisors' Opinion:

[By Chris Hill]
Noodles & Company's (NASDAQ: NDLS ) stock continues to rise. Westport Innovations (NASDAQ: WPRT ) experiences a pullback. Southwest Airlines (NYSE: LUV ) and DISH Network (NASDAQ: DISH ) team up to offer live TV to passengers. And it was a bad day for anyone who thinks Amazon.com (NASDAQ: AMZN ) is overvalued. In this installment of Investor Beat, Jason and Matt discuss four stocks making big moves today.
[By Alyce Lomax]
Headline drama
Who will acquire Sprint has been making major headlines this week. Japan's SoftBank made a $20.1 billion offer for the wireless company, but DISH Network (NASDAQ: DISH ) made an unsolicited $25.5 billion offer.
[By Ben Levisohn]
Like a spring that launches itself into the air after the pressure is released, the stock market has jumped higher as Vladimir Putin dialed back the tension in Ukraine. Walt Disney (DIS), American Express (AXP), Goldman Sachs (GS), Dish Network (DISH) and Delta Air Lines (DAL) helped lead the markets higher.

Hot Media Companies To Watch In Right Now: Discovery Communications Inc(DISCA)

Discovery Communications, Inc. operates as a non fiction media and entertainment company worldwide. The company provides original and purchased programming across various distribution platforms. Its content covers science, exploration, survival, natural history, sustainability of the environment, technology, docu-series, anthropology, paleontology, history, space, archaeology, health and wellness, engineering, adventure, lifestyles, forensics, civilization, and current events. The company owns and operates nine national television networks in the United States, including Discovery Channel, TLC, Animal Planet, Science Channel, Investigation Discovery, Military Channel, Planet Green, Discovery Fit & Health, and Velocity. Discovery Communications also has interests in Oprah Winfrey Network, a pay-television network and Web site; The Hub that features original programming, game shows, and live-action series and specials; and 3net, a three-dimensional network. In addition, it o ffers network branded Web sites, and mobile and video-on-demand services; and distributes various national and pan-regional television networks. Further, the company develops and sells curriculum-based products and services to public and private K-12 schools, such as access to an online VOD service that includes curriculum-based tools, professional development services, and student assessment and publication of hardcopy curriculum-based content; and postproduction audio services to motion picture studios, independent producers, broadcast networks, cable channels, advertising agencies, and interactive producers. As of December 31, 2011, it operated approximately 150 distribution feeds in 40 languages. The company is headquartered in Silver Spring, Maryland.

Advisors' Opinion:

[By Harold L. Vogel]
*Includes AMC (AMCX), Cablevision (CVC), Charter, Comcast Cable (CMCSA) and networks, Discovery (DISCA), Disney (DIS) cable networks, Time Warner Cable (TWC) and cable networks, Viacom (VIAB) networks.
[By Patricio Kehoe] d that precise strategy and now owns several cable networks available in over 200 countries worldwide. The national and pan-regional networks, distributed through 130 feeds and in 40 languages, have established this media firm in virtually every market. So, let�� take a look at what might have encouraged investment gurus Ron Baron (Trades, Portfolio) and Lee Ainslie (Trades, Portfolio) to add more of this company�� shares to their portfolio.�

Working Through the Niche

As the niche cable network provider in the media industry, Discovery�� flagship channel addresses topics like science, technology, history and exploration. With TLC, Animal Planet and Discovery as the three key domestic channels, the company reaches 100 million households, and despite the mature U.S. market, sales have grown 6% and revenue 10% in fiscal 2013. This is mainly due to the media giant�� unique content programming and line-up refreshments. Hit shows like Shark Week, for example, have become so popular through advertising that the network experienced in 2013 its all-time best viewership with over 50 million viewing rates during one episode. The men�� lifestyle cable network, Velocity, also experienced a 30% viewership increase in quarter four of 2013, and is now the fastest-growing network in that segment.��

Furthermore, in addition to the namesake channels, Discovery also owns Investigation Discovery, The Learning Channel, a 50% stake in Oprah Winfrey�� new cable channel OWN, and The Hub, a children�� network created with Hasbro Inc. (HAS). The strong universal appeal of content which transcends cultures and languages, add a differential value to this company and has allowed international distribution across multiple media platforms. In fact, 100% content ownership gives this firm a competitive advantage, as it can seek benefits from non-traditional content distribution. With companies like Netflix Inc. (NFLX)�or Amazon.com Inc. (AMZN) looking to push t

Sunday, April 27, 2014

Why National Research's Earnings Are Outstanding

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on National Research (Nasdaq: NRCI.B ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, National Research generated $18.0 million cash while it booked net income of $15.7 million. That means it turned 20.3% of its revenue into FCF. That sounds pretty impressive.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at National Research look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With questionable cash flows amounting to only 1.6% of operating cash flow, National Research's cash flows look clean. Within the questionable cash flow figure plotted in the TTM period above, changes in taxes payable provided the biggest boost, at 5.9% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 10.6% of cash from operations.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Is National Research the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

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Saturday, April 26, 2014

Why Broadcom Shares Got Bonked

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of communications chip maker Broadcom (NASDAQ: BRCM ) sank 15% today after its quarterly results and guidance disappointed Wall Street.

So what: Broadcom's second-quarter adjusted EPS managed to top estimates, but a slight miss on the top line -- revenue of $2.09 billion versus the consensus of $2.11 billion -- coupled with downbeat guidance for the current quarter is triggering worries over slowing growth. Specifically, analysts cited uncertainty over the company's product transition, increasing competition, and overall weakening demand for smartphones as reasons to be concerned, giving short-term-oriented traders little reason to stick around.

Now what: Management now sees third-quarter revenue in the range of $2.05 billion to $2.2 billion, below the average analyst estimate of $2.25 billion, but expects its market share to remain in good shape for the rest of the year. "Looking forward, we see continued growth driven by our industry leading portfolio of wired and wireless communication platforms," said CEO Scott McGregor in a statement. More important, with the stock hitting a new 52-week low today and trading at a paltry forward P/E of 8, now might be an opportune time to buy into that long-term bullishness.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Friday, April 25, 2014

Top Portfolio Products: Invesco to Launch Preferred-Stock ETF

New products and changes introduced over the last week include a variable rate preferred ETF from Invesco PowerShares; Advisors Asset Management has launched a unit investment trust; and Emerging Global Advisors has rolled out the EGShares Blue Chip ETF.

Other new products include a small business retirement plan comparison calculator from WMSI, and a tax app for the new year from W&S Financial Group Distributors.

Here are the latest developments of interest to advisors:

1) Invesco Announces Variable Rate Preferred ETF

Invesco PowerShares Capital Management LLC has announced the coming launch of the PowerShares Variable Rate Preferred Portfolio (VRP) on May 1. VRP is based on the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index and will generally invest at least 90% of its total assets in preferred securities that make up the index.

The index is market-capitalization-weighted and is designed to track the performance of preferred stock, as well as certain types of hybrid securities that are functionally equivalent to preferred stock, that are issued by US-based or foreign issuers and that pay a floating or variable rate dividend or coupon. VRP and the index are rebalanced monthly.

2) Emerging Global Advisors Launches EGShares Blue Chip ETF

Emerging Global Advisors has announced the launch of the EGShares Blue Chip ETF (BCHP), designed to provide investors with exposure to a group of 30 developed market (DM) companies with measurable growing revenue in their emerging market (EM) operations.

BCHP will track the EGAI Developed Markets Blue Chip EM Access Index, an equally weighted 30-stock index designed to capture the market performance of developed market companies that have measurable, meaningful and growing revenue from emerging markets. The index consists of common stocks listed on the primary exchanges of developed markets, as well as American depositary receipts (ADRs) and global depositary receipts (GDRs) listed on U.S. & European exchanges.

3) AAM Launches UIT

Advisors Asset Management has announced the launch of the NASDAQ Q-50 Index Portfolio, Series 2014-1Q (NQFNAX), a unit investment trust (UIT) seeking to provide investors with capital appreciation potential.

The UIT seeks to invest on an ongoing basis in the 50 stocks that comprise the NASDAQ Q-50 Index, a market-capitalization-weighted benchmark tracking companies that are next-eligible for inclusion in the NASDAQ-100 Index. This group of firms, known as the Q-50, includes nonfinancial companies from a variety of industries, such as computer hardware and software, telecommunications, healthcare, biotechnology and retail/wholesale trade. Approximately 70% of the NASDAQ Q-50 Index’s current companies are based in theU.S.

4) WMSI launches Small Business Retirement Plan Comparison Calculator

Wealth Management Systems Inc. has announced the launch of its small business retirement plan comparison calculator within Pershing’s NetX360 retirement resource center.

The tool helps advisors to support small business owners in evaluating retirement plan options, choosing a plan to meet their needs and calculating the owner’s maximum contribution towards retirement.

5) W&S Financial Group Distributors Launches Tax App

W&S Financial Group Distributors, Inc. has announced the launch of its 2014 tax reference app, a mobile application for federal tax information.

The app is available in major app stores. It allows financial professionals to access tables for income tax brackets; AMT exemption amounts; estate tax rates and exclusions; IRA and pension plan limits; calculations of RMDs, marginal tax rates and estate tax liabilities; links to related W&S Financial Distributors’ information on retirement planning scenarios; and electronic updates.

Read the Apr. 20 Portfolio Products Roundup at ThinkAdvisor.

Health Stocks: Are Premium Grocers and Others Worth a Buy?

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There are times when I question whether I made the correct career choice — like when I see job openings for professional craft beer brewer. Upscale grocer Whole Foods Market (WFM) is creating its own in-house beers and needs a proper brew master to lend his expertise. I look forward to sampling their handiwork.

health care piggy bank money 630 150x150 Health Stocks: Are Premium Grocers and Others Worth a Buy?

Source: Flickr

It’s a little ironic that Whole Foods — a grocer known for selling healthy, organic food — is branching into something as delightfully unhealthy as beer brewing, but the trend towards healthier eating and the popularily of microbrews are driven by some of the same demographic shifts–and Whole Foods knows its customers well.

Generation X (Americans in their late-30s to very early 50s) and the Millennials (Americans in their early 20s to early 30s) have very different tastes than the Baby Boomers did at the same age when it comes to diet. And the Boomers themselves are changing their habits as they age.

These differences are going to create some clear winners and losers across a broad spectrum of consumer products I’d loosely lump into the “health and wellness” sector: everything from organic grocers to vitamin hawkers at the mall. But success at the cash register won’t necessarily translate to success for shareholders.

Health Stocks — Premium Grocers

Let’s take a look, starting with premium grocers. I wrote about Whole Foods recently, noting that groceries are a rotten business. The business of selling food and basic staples is brutally competitive and tends to have modest margins. There is one big exception, however: Premium or specialty grocers such as Whole Foods, Trader Joe's or HEB's Central Market.

These stores — which often offer organic options and more exotic international or craft fare — have had tremendous success in recent years. Whole Foods — the only publicly traded upscale grocer of any size or scale — is also the only grocer that can compete with Walmart (WMT) in terms of profitability (see my previous article).

The rise of premium grocers is backed by overlapping macro trends that should have years — if not decades — left to run.

Let's start with the elephant in the room: the aging of America's Baby Boomers. As a generation, the Baby Boomers have been getting progressively pickier in their dietary choices over the past 30 years as the exigencies of age have forced them to take better care of themselves.

Don't underestimate Generation X, either. Generation X's preferences have been the driven force behind the internationalization of American food and for the trendy fusion restaurants that crop up in chic neighborhoods like weeds. The Millennials are starting to make their preferences felt as well, and — like Generation X — they have tended to gravitate towards premium foods to the extent that they can afford them at this stage of their lives.

And finally, you have the issue of rising incomes. For the educated and upwardly mobile — the demographic groups that tend to flock to premium and organic grocers — life in America has never been better. The unemployment rate is only about 4% for Americans with a college degree, and the figure drops to just 2.3% for those with a professional degree.

All of this points to a rosy picture for premium grocery chains. Yet the stock performancee paint a very different picture. Compare the performance of publicly traded premium grocers — Whole Foods, Sprouts Farmers Market (SFM), The Fresh Market (TFM), and Fairway Group Holdings (FWM) — against that of the ultimate common-man's grocer, Walmart. Since last October, Walmart is the only grocer stock that hasn't seen substantial declines. What gives? I have one word for you: valuation.

Company	Ticker	Trailing P/E	Forward P/E	Price/Sales
Whole Foods Market	WFM	32.1	25.2	1.36
Sprouts Farmers Market	SFM	91.7	41.9	2.05
The Fresh Market	TFM	32.7	18.4	1.1
Fairway Group Holdings	FWM	N/A	N/A	0.42
Walmart	WMT	16.0	13.5	0.52

Looking at the price/sales ratio, Whole Foods is almost three times as expensive as Walmart — yes, Walmart, the most successful retailer in history. Sprouts is nearly four times as expensive. The Fresh Market and Fairway are a little more reasonably priced, but they’re far smaller and off the radar for a lot of investors.

So, is the foul odor coming from the produce sector just another manifestation of the momentum stock rout? The high-fliers of the past year have had high-profile faceplants during the past six weeks, with many posting double-digit price declines since the beginning of March.

After the recent declines, are the specialty grocers a buy?

No, or at least not yet. The macro trends are durable and real; of this I have little doubt. But it comes back to the economics of the grocery business. Mainstream grocers have not sat idly while the Whole Foods and Trader Joes of the world have poached their customers. Safeway (SWY), Kroger (KR) and even Walmart have expanded their premium and organic offerings in recent years. And while premium grocers can charge more for their products, this ability has limits. Grocery shoppers tend to be a demanding and fickle lot.

Health Stocks — Casual Dining

OK, so organic grocers are best avoided at current prices. But what about health-conscious casual dining?

A growing, high-margin business that fits the general theme of organic fare is Chipotle Mexican Grill (CMG), which avoids using genetically-modified food in most of its ingredients. Chipotle practically mints money with returns on equity consistently more than 20%. Chipotle also funds its expansion organically via cash flows and not via debt or share dilution.

Of course, Chipotle isn't cheap by any stretch. It currently trades hands at 48 times earnings. The stock has also been in freefall for the past month, down about $100 per share. Investors have been concerned that rising food costs will erode profitability, and they probably will — at least in the short term.

Organic fare isn’t cheap, and Chipotle’s margins have been pinched in recent years due to rising food costs, so Chipotle is raising prices for the first time in three years. The increase will in the range of 3% to 5%, or about 25 cents per burrito.

I don't make a habit of catching falling knives, so I wouldn't recommend buying CMG shares today. But I would be a buyer in the mid-$400s if the share price can stabilize.

Another healthy dining choice to keep your eye on? Try Zoes Kitchen (ZOES), which just recently went public. I always recommend caution when discussing small IPOs (ZOES has a market cap of just $500 million), but the macro trend of healthier eating combined with the recent trendiness of the Mediterranean diet should bode well for the chain.

Health Stocks — Packaged Diets and Supplements

Now that I have you salivating thinking about burritos, what about traditional "health" stocks such as diet products companies Weight Watchers (WTW) and Nutrisystem (NTRI) or vitamin and supplement retailer GNC Holdings (GNC)?

I would stay away from all of these and, if you are so inclined, look for opportunities to short. I'm simplifying, of course, but health-conscious Americans have figured out what should have been obvious years ago — if you eat healthier food, you get all of the nutrition you need. Taking a multivitamin pill with your morning coffee won’t "undo" the negative effects of the Egg McMuffin you ate with it. And recent research has shown that vitamins and supplements have no real health benefits and may actually be harmful if overused.

Demographically, shrink-wrapped diet products — the sort you might see on the Home Shopping Network — are a product for middle and working class Baby Boomers, which is a socioeconomic group that is declining in purchasing power and in economic importance. Generation X and the Millennials have not taken to these products, and I don’t expect them to. They’ve grown up expecting better.

Charles Lewis Sizemore, CFA, is the chief investment officer of the investment firm Sizemore Capital Management. As of this writing, he was long WMT. Check out his new premium service, Macro Trend Investor, which includes a free copy of his e-book, The New Megatrend Investor: The Ultimate Buy-and-Hold Strategy That Will Make You Rich.

Wednesday, April 23, 2014

No For Sale Sign On EUR Or GBP Just Yet

Despite major currency volatility falling to its lowest level in seven-years, there has been some movement in the forex market now that the Easter holidays are over. Fundamental data releases stretching from Australia to London in the overnight session have renewed some intraday interest in some of the major currency pairs, albeit small, any movement at this juncture is a positive and certainly preferred to than watching “paint dry” – this forex market desperately needs to break out of its tightly confined trading ranges.

The 18-member single currency the EUR, the nemesis of many a portfolio position, could not go down and has now decided to climb higher for the time being at least. For a brief period, the EUR was hemmed in and comfortable trading within arms length of €1.3800 due to option related interest. The market has been waiting for Euro-zone flash PMI data to either push the EUR markets out of their recent “reverie” or with weaker readings strengthening the case of more ECB action. To date, flows into European equities and the peripheral debt market have been supporting the EUR, however, many investors still require fundamental assurance and that has come in the form of some flash PMI readings.

The Eurozone composite flash PMI managed to conjure a 54 print, stronger than the 53.1 that were expected. It's near a three-year high, but not surprisingly much of the strength continues to be driven by Germany (56.3). The composite for France stands at 50.5 (just in expansion territory) and even with France lagging, the strength in the composite would suggest that the periphery is not as weak as many had expected. It seems to have returned to being “fragile and uneven.” Some positive prints have managed to push the EUR to session highs (€1.3848) with Scandinavian pension funds having the largest appetite for the currency. Do not be surprised that these elevated levels begin to attract some speculative top picking given that Draghi speaks tomorrow. The recent dovishness dialogue from other ECB talking heads would suggest that the market could expect Draghi to “coo” as well. However, real money buying interest has been noted on shallow dips from the highs (€1.3855). Better US data has led the specs into EUR/USD shorts and with this morning's slight improvement in Euro-zone data will begin to put these shorts under some pressure. Assuming nothing geopolitically untoward, FOMC and Euro-zone CPI on April 30th will be the next critical event for EUR position holders.

The pound has been unable to make fresh 5-year highs after this morning's BoE minutes saw downward pressure on the inflation front. As expected, there was a ‘no' change decision on QE being left on hold at +0.5% and £375b respectively. However, the headline that the MPC saw a range of views with regard to the degree of “slack” in the economy has left near term gilt futures trading higher and GBP trading under pressure (£1.6790). The MPC estimated in forward guidance II that “slack” equated to 1% to 1.5% of GDP.

BoE officials are also struggling to make sense of the UK's big rise in self-employment and what effect it will have on inflation. Carney and company believes that much of the “slack” is concentrated in the labor market; despite a falling unemployment rate the concept of “underemployed” seems prevalent. UK self-employment rose by +200k in the three-months to January and accounts for 50% of total employment in the past four-years. Governor Carney is trying to understand if this phenomenon is a true change in work practices or a “disguised” form of labor slack in the UK economy. The fixed income traders have been pricing in a rate hike for the BoE early next year. Nonetheless, expect the BoE to kindly remind the market that “the precise timing of and the speed of rate hikes will depend on how quickly ‘spare capacity' in the UK economy is used up.” While corrective moves deeper into the £1.6700′s cannot be ruled out the scope for many is for new multi-year highs from sterling. Interested investors remain better buyers of the pound on dips.

Other Links:
EUR Strangled By Options, GBP Awaits BoE

The post No For Sale Sign On EUR Or GBP Just Yet appeared first on MarketPulse.

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 Markets

Originally posted here...

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Manning & Napier Report First Quarter Top Stocks

Manning & Napier is an investment fund that provides investment solutions through various means such as managed accounts, mutual funds and collective investment trust funds. The fund was founded in 1970 and as of June 30, 2013, the fund managed $46.3 billion in client assets.

Manning & Napier recently released their first quarter portfolio which highlighted 81 new stock buys. As of the close of the first quarter the fund holds on to 372 stocks valued at $24.237 billion. The following five companies represent Manning & Napier's top five portfolio holdings as of the close of the first quarter.

Schlumberger NV (SLB)

Manning & Napier Advisors' largest position is in Schlumberger where they maintain 8,882,428 shares. Their position in Schlumberger represents 3.6% of their total portfolio and 0.67% of the company's shares outstanding. During the first quarter the fund made a reduction of -3.32% by selling 305,133 shares of the company's stock. They sold these shares in the first quarter price range of $86.16 to $97.96, with an estimated quarterly price of $90.27. Since then the price per share is up approximately 13.1%. Manning & Napier's historical holding history:

Schlumberger NV is a supplier of technology, integrated project management and information solutions to customers working in the oil and gas industry worldwide. Schlumberger's historical revenue and net income:

The analysis on Schlumberger reports that the company's dividend yield is at a 2-year low, the company has issued $5.2 billion of debt over the past three years and they've shown predictable revenue and earnings growth. The Peter Lynch Chart suggests that the company is currently overvalued:

Schlumberger NV has a market cap of $134.15 billion. Its shares are currently trading at around $102.61 with a P/E ratio of 20.20, a P/S ratio of 2.90 and a P/B ratio of 3.40. The company had an annual average earnings growth of 12.10% over the past ten years. GuruFocus rated Schlumberger the business predictability rank of 3-star.

Hess (HES)

Manning & Napier's second largest holding is in Hess Corp where the fund holds on to 9,529,403 shares of the company's stock. This position makes up for 3.3% of the fund's total portfolio and 2.78% of the company's shares outstanding. During the first quarter Manning & Napier cut their position in Hess -14.04% by selling a total of 1,556,257 shares. They sold these shares in the first quarter price range of $73.92 to $83.96, with an estimated average quarterly price of $79.40. Since then the price per share has increased approximately 10.8%. Manning & Napier's historical holding history:

Hess and its subsidiaries is a global integrated energy company that operates in two segments: Exploration and Production (E&P) and Marketing and Refining (M&R). The E&P segment explores for, develops, produces, purchases and sells crude oil and natural gas. The M&R segment purchases, markets and trades refined petroleum products, natural gases and electricity.

Hess' historical revenue and net income:

The analysis on Hess reports that the price is near a 5-year high, it has issued $1.1 billion of debt over the past three years and the company is in a healthy situation according to its Piotroski F-Score.

The Peter Lynch Chart suggests that the company is currently undervalued:

Hess has a market cap of $28.66 billion. Its shares are currently trading at around $88.11 with a P/E ratio of 5.90, a P/S ratio of 1.20 and a P/B ratio of 1.20. The company had an annual average earnings growth of 6.80% over the past ten years.

EMC Corp (EMC)

The fund's third largest holding is in EMC Corp where they hold 24,589,207 shares as of the close of the first quarter. Their position represents 2.8% of their total portfolio and 1.18% of the company's shares outstanding. Manning & Napier decreased their holdings over the first quarter. In doing so they sold a total of 6,445,609 shares of the company's stock in the first quarter price range of $23.66 to $28.18. Since then the price per share is trading up about 4.2%. The fund's historical holding history:

EMC and its subsidiaries develop, deliver and support the Information Technology industry's a range of information infrastructure and virtual infrastructure technologies and solutions.

EMC's historical revenue and net income:

The analysis on EMC reports that the company's revenue has slowed down over the past year, they have issued $3.7 billion of debt over the past three years and its operating margin is expanding.

The Peter Lynch Chart suggests that the company is currently overvalued:

EMC Corporation has a market cap of $54.55 billion. Its shares are currently trading at around $26.93 with a P/E ratio of 20.20, a P/S ratio of 2.50 and a P/B ratio of 2.50. The company had an annual average earnings growth of 14.50% over the past ten years.

GuruFocus rated EMC Corp the business predictability rank of 4-star.

Unilever PLC (UL)

Manning & Napier's fourth largest holding is in Unilever. The guru holds on to 14,960,937 shares of Unilever, representing 2.6% of their total holdings and 0.49% of the company's shares outstanding. Over the past quarter, Manning & Napier increased their position 2.05% by purchasing 300,462 shares. They purchased these shares in the first quarter price range of $37.85 to $42.62, with an estimated average quarterly price of $39.78. Since then the price per share has increased approximately 10.1%. Manning & Napier's historical holding history:

Unilever PLC is a supplier of fast moving consumer goods. Its four principal areas of operations are: Personal Care, Home Care, Foods and Refreshment.

Unilever's historical revenue and earnings growth:

The analysis on Unilever reports that the company's price is near a 10-year high, it has issued £1.1 billion of debt over the past year and its inventory has been building up recently, meaning that the company might be having difficulty selling its product.

The Peter Lynch Chart suggests that Unilever is currently overvalued:

Unilever PLC has a market cap of $133.31. Its shares are currently trading at around $44.07 with a P/E ratio of 19.20, a P/S ratio of 1.90 and a P/B ratio of 6.80. The dividend yield of Unilever stocks is currently at 3.50%. The company had an annual average earnings growth of 2.40% over the past ten years.

Encana (ECA)

Manning & Napier's fifth largest holding is in Ecana. The guru holds on to 27,376,066 shares of Unilever, representing 2.4% of their total holdings and 3.71% of the company's shares outstanding. Over the past quarter, Manning & Napier increased their position 0.22% by purchasing 60,930 shares. They purchased these shares in the first quarter price range of $17.25 to $21.42, with an estimated average quarterly price of $18.90. Since then the price per share has increased approximately 21.8%.

Manning & Napier's historical holding history:

Encana is an energy producer that is focused on growing its strong portfolio of diverse resource plays producing natural gas, oil and NGLs. The company's other operations include the transportation and marketing of natural gas, oil and NGLs.

Encana's historical revenue and net income:

The analysis on Encana reports that the company's revenue has been in decline over the past five years, its dividend yield is near a 5-year low and its price is near a 2-year high. The analysis also notes that the company's P/E, P/B and P/S ratios are all near a 1-year high.

Check out Manning & Napier's complete first quarter portfolio here. Try a free 7-day premium membership trial.

Also check out: Manning & Napier Undervalued Stocks Manning & Napier Top Growth Companies Manning & Napier High Yield stocks, and Stocks that Manning & Napier keeps buying

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Tuesday, April 22, 2014

Gun silencer sales are booming

The fast-growing market for silencers is outpacing sales for the guns they attach to.

NEW YORK (CNNMoney) Sales are booming for silencers, the cylindrical devices used to muffle gunfire.

The civilian market for silencers soared 37% in 2013, when the total number shot up to nearly a half a million, according to the Bureau of Alcohol, Tobacco, Firearms and Explosives registry. That's compared to 360,000 in 2012 and 285,000 in 2011.

Silencers are so popular that there's a nine-month wait to have a registration approved by the ATF, according to Ben Shim, a certified firearms instructor and gun industry analyst with CRT Capital Group in Stamford, Conn.

"People have gone crazy buying guns, but they're done buying them for the time being, so they're buying accessories," Shim said.

Many gun owners rushed to buy assault rifles after the Newtown massacre, fearing that a weapons ban would be enacted. Now, Shim says, those owners are customizing their guns with "a dizzying array of accessories." Add-ons include silencers, flashlights, laser scopes, stocks, pistol grips and rail systems for attaching even more accessories.

"The AR-15 weapons platform is very modular," said Shim, referring to a type of rifle used by the U.S. military. "It's like Barbie for men."

Silencers attach to the end of a gun barrel and can be used with a variety of handguns and rifles. They are more accurately referred to as suppressors, since "the noise of a chambered round being fired is never silent, only suppressed or dampened," said gun industry analyst Brian Rafn of Morgan Dempsey Capital Management in Milwaukee.

The popularity of suppressors is driven in part by the value they offer to hunters, said Rafn, because they "give the hunter multiple shots without frightening the game."

One of the most powerful guns you can buy

ATF special agent Tim Graden said that silencers are categorized as firearms by the federal government, even though the silencer itself can't fire a bullet. The basic background check for most guns requires the purchaser to present a photo ID to the retailer and electronically submit a form to the ATF. Approval usually takes about 2! 0 minutes. But purchasing a silencer requires the applicant to mail or Fax a photo and fingerprints to the ATF and to pay a $200 tax, with the approval process taking nine or 10 months.

That's because silencers are regulated by the National Firearms Act, which was passed in 1934 in response to gang violence, according to the ATF. But they're still legal in 39 states, including 29 states where they're permitted for hunting, according to the American Silencer Association.

"Most people just don't know you can buy one," said Jason Schauble, chief finance officer for SilencerCo in West Valley City, Utah. "We have a whole campaign called 'silencers are legal'."

Advanced Armament Corp. of Lawrenceville, Ga., uses the slogan "Silencing is not a crime."

Suppressors are so expensive that they can cost more than the guns they're attached to. SilencerCo sells its least expensive suppressor, the Harvester for hunting rifles, for $750. Its most expensive suppressor, the Saker, goes for $1,300.

Suppressors are for "the graduate-level gun buyer," said Schauble, a veteran of the Iraq war and the former Chief Executive Officer of TrackingPoint, a Texas-based maker of smartscope rifles that cost more than $20,000.

"I owned 50 guns before I bought my first silencer," he said.

Monday, April 21, 2014

Netflix tops $1B in revenue and beats estimates

Bolstered by a burgeoning roster of paying customers and profits that exceeded expectations, Netflix says it plans to increase prices for new subscribers.

The company on Monday announced that its subscriber base grew more than expected — adding 4 million — to 48 million members worldwide. Its net profit of $53 million, or 86 cents per share, beat analysts' estimates of 83 cents a share. It also beat the company's own forecast of $48 million and earnings per share of 78 cents.

Some time in the next three months, the company plans to raise prices $1 or $2 for new members globally — a move that could also temper subscriber churn. That's because existing member monthly fees would remain at current pricing (such as $7.99 or $11.99 in the U.S., for two-stream or four-stream tier subscriptions) for a "generous time period," the company said. The lower fee could counteract the tendency for some users to cancel after binge-watching a season of House of Cards and sign up later for no penalty.

Netflix, which currently has 35.7 million U.S. subscribers, continues its drive toward a domestic base of 60 million to 90 million.

The company is acting from a position of strength, says Mark Mahaney, managing director of Internet for investment banking firm RBC Capital Markets. "Across the Internet, we're seeing companies like Amazon, Pandora and Netflix ... raising prices one way or another," he says. "I don't think too many consumers are going to be put off by spending a dollar or two a month for the quality, the quantity of content that Netflix has."

Shares of Netflix rose in after-hours trading, up more than 6% to $369.50, having closed at $348.49 before the Los Gatos, Calif.-based company released its earnings at the market's close.

Netflix stock has been volatile. It climbed to nearly $455 after the streaming service in February announced a deal with Comcast to ensure high-quality streaming of Netflix content for Comcast Net customers. Since then, the stock has taken a hit in ! the wake of last month's reports that Apple and Comcast were teaming up for an as-yet unannounced streaming TV service.

Among Netflix's good first-quarter signs was an increased rate of growth in new U.S. streaming subscribers, an additional 2.3 million, compared with 2 million in the same quarter last year. Signs were bright for such initiatives as the DVD mail service and international business. Netflix's international base grew to by 1.75 million during the quarter to 12.7 million and accounted for about 25% of total revenue.

In his letter to shareholders Monday, Netflix CEO Reed Hastings expressed his opposition to Comcast's proposal to buy Time Warner Cable, notwithstanding his own recent deal with Comcast. "Comcast is already dominant enough to be able to capture unprecedented fees from transit providers and services such as Netflix," he said.

Netflix will release Season 2 of its hit 'Orange is the New Black' on June 6.(Photo: Netflix)

Contributing: Roger Yu

This 'Baby Boomer' Stock Is A Dividend Machine

Since the Federal Reserve's recent announcements regarding the "tapering" of its quantitative easing programs, the real estate investment trust (REIT) market has been in a tailspin.

The Dow Jones Equity REIT Index has fallen sharply since the middle of May, as investors began to sell on fear that the REIT market -- where profits are often tied closely to interest rates -- is in for hard days ahead.

But investors should keep in mind that not all REITs are created equal.

While some mortgage REITs such as Annaly Capital (NYSE: NLY) or American Capital Agency (NYSE: AGNC) depend on the difference between short-term rates and the price they can get for holding long-term debt (the yield curve), others make money by buying and leasing physical property.

This second type of REIT tends to be more stable, as the leasing of physical assets is much less volatile than the market for complex financial instruments.

So while the REIT market as a whole has declined in the wake of the Fed's recent announcements, REITs that invest in physical property have in some cases suffered price drops that are based on mostly on fear and have little to do with the value of the underlying business.

The company I'm going to tell you about today makes money by investing in health care real estate. Regular SteetAuthority readers are probably already familiar with the idea that the growing demand for health care due to the aging baby boomer generation represents a stellar investment opportunity.

Elliot Gue, the expert behind Top 10 Stocks (and a recent guest on CNBC) recently recommended another health care REIT in his May issue. While I can't reveal the name of his pick out of fairness to his subscribers, I think it's worth reprinting some of the demographic data he mentioned concerning health care REITs in general:

The U.S. Census Bureau estimates that the population of Americans older than 65 will increase by 37% (3.2% annually) during the next decade and that the number of U.S. residents over 75 years of age will surge by 46% (3.8% annually) in the subsequent decade.

These favorable demographic trends should fuel demand for space in independent-living facilities, followed by assisted-living and skilled-nursing facilities that offer increasing levels of care. While per-capita health care spending for Americans between 65 and 75 years old is elevated relative to younger population segments, this metric soars by roughly 70% after the age of 75. The aging U.S. population should fuel consumption of health care products and services.

Meanwhile, baby boomers' investment strategies are poised to continue evolving from a focus on accruing assets to turning accumulated savings into a dependable, lifelong income stream -- a potential boon for shares of health care REITs and other dividend-paying defensive stocks.

After reviewing a number of options in this sector, one in particular caught my eye. This company boasts a "fortress" balance sheet, a long history of rising dividends, and one of the best management teams in the business.

HCP Inc. (NYSE: HCP) acquires and manages health care real estate and provides financing to health care providers.

The company currently yields nearly 5% and has raised its dividend every year for the past decade. There is no reason to suspect the future will be any different, as HCP holds little debt and has been increasing its free cash flow by leaps and bounds.

From 2010 to 2011, the company nearly doubled free cash flow, from $276 million in 2010 to $526 million in 2011. In 2012, free cash flow was up to $840 million, an increase of 63%.

The company's debt-to-equity ratio is 0.8, slightly lower than the industry average of 0.9. Yet even after a recent $1.7 billion acquisition, the company still has plenty of cash left over to pay (and keep growing) dividends.

One of the key reasons for HCP's success has been its focus on triple-net leases. Under this structure, tenants are responsible for paying all property operating expenses. These include real estate taxes, utilities and the cost of property upkeep. In addition, the company has built-in protection from inflation, due to rent payments that generally keep pace with or exceed the inflation rate.

In its recent $1.7 billion deal, HCP added 129 properties to its senior housing community portfolio. These properties offer initial lease terms of 14 to 16 years, with the option to extend leases at higher rents for up to 30 to 35 years.

Long-term, steady-income generating deals like these are HCP's specialty. Disciplined acquisition, along with a consistent ability to create shareholder value, makes HCP's management team hard to beat.

Since CEO Jay Flaherty took the helm in 2002, HCP has returned an average of 16% a year to shareholders through dividends and capital gains. That compares with an annual average gain of 6% in the S&P 500 in that time.

Best of all, after the recent market pullback, shares have been selling at a discount. HCP shares dropped 23% between May 21 and June 20.

Yet after poring over the latest company transcripts and financial statements, I haven't been able to find any red flags that would justify such a steep decline. Nor could I find sufficient evidence to support the idea that, relative to its peers, HCP was simply an overvalued stock that was due for a correction.

HCP is thriving and should continue to do so for years to come. Owning and renting properties in the health care sector is one of the safest and most stable business models in the REIT universe.

When quality companies like HCP experience irrational price drops, it's a good time for savvy investors to shop for bargains.

Risks to Consider: Changes in governmental health care regulation are always a potential concern in the health care sector. Should programs such as Medicare and Medicaid undergo significant revisions, it could have a negative impact on tenants' ability to pay rent or to afford rent increases.

Action to Take --> HCP is a great investment at today's prices for long-term, dividend-oriented investors.

P.S. -- Stocks like HCP -- which has increased its dividend every year for the past decade and currently yields 5% -- are perfect for our "Dividend Trifecta" strategy. Go here to learn more...

Sunday, April 20, 2014

Wal-Mart protestor turns to President Obama for help

Chermaine Givens-Thomas has worked at Wal-Mart for eight years.

NEW YORK (CNNMoney) Wal-Mart workers have been striking for nearly a year, asking Wal-Mart for higher wages, better benefits and the right to speak out without retaliation.

But on Thursday, one Wal-Mart (WMT, Fortune 500) worker in Chicago is looking to someone else to help make a change: President Obama.

Charmaine Givens-Thomas, a 60 year-old Wal-Mart worker, started an online petition asking the President to meet with the Wal-Mart employees who have been protesting.

"We would like for you to hear first-hand why [workers] are appealing for respect and calling on Wal-Mart to pay them more to feed and support their families," she wrote on the petition.

Givens-Thomas has worked at Wal-Mart in Chicago for eight years as a cashier, door-greeter and now in electronics. She makes $11 per hour, working between 32 and 35 hours per week. It's a struggle to pay her bills, which is why she has joined in on many of the protests.

As someone who marched with Martin Luther King Jr., she said she feels locked out of their dream of good jobs and equality.

"Like too many Americans, I cannot promise my grandchildren that they will have a brighter future than I had -- in our country a small elite is actively impoverishing the vast majority," she wrote.

Givens-Thomas' petition comes as a handful of Wal-Mart workers went on a two-day strike in Los Angeles. The efforts, backed by the union-backed group OUR Walmart, builds upon nearly a year of similar protests and gatherings that started on Black Friday last November.

&nb! sp; Wal-Mart workers protest on Black Friday

The White House hasn't stayed mum on the issue. The "low-wage worker" protests were mentioned in a blog post this summer by the White House economic adivisers Gene Sperling and Alan Krueger. They said that raising the minimum wage was part of President Obama's economic vision.

But Givens-Thomas is looking for more.

"It's time for the President to meet with Wal-Mart workers like me who are standing up to Wal-Mart and hear about the reality of scraping by on Main Street." she said.

Wal-Mart spokeswoman Brooke Buchanan said that the company encourages employees who have concerns to address them with the company's leadership.

"We will do everything in our power to listen and take action," she said.

The White House did not respond to request for comment.

Saturday, April 19, 2014

Hot Wireless Telecom Stocks To Watch Right Now

You can be forgiven if you've never heard of Fairway Group Holdings (NASDAQ: FWM ) . The company is responsible for Fairway Market, a small chain of high-end grocery stores currently in and around the greater New York City metropolitan area.

Back to the beginning
Fairway dates back to the 1930s, when it started out as a small local market, and today it still maintains its small footprint with only 12 stores in what's estimated to be a $30 billion food retail market in the greater New York City metropolitan area; however management has some big growth plans in mind. This probably helps explain its recent IPO in April of this year. And since then, the stock has been on a tear, rising 58% and counting.

Is opportunity knocking?
While Fairway is tiny today, management sees the Northeast market (from New England to the District of Columbia) ultimately supporting up to 90 stores along with an additional 300 nationwide. So is it reasonable to believe that the market can support 400 or so Fairway stores? Possibly. Let's take a look at some other well-known names to see how they stack up:

Hot Wireless Telecom Stocks To Watch Right Now: Lumos Networks Corp (LMOS)

Lumos Networks Corp. is a fiber-based service provider in the Mid-Atlantic region. The Company provides data, broadband, voice and Internet protocol (IP) services over fiber optic network. The Company offers a range of data and voice products supported by approximately 5,800 fiber-route miles in Virginia, West Virginia, and portions of Pennsylvania, Maryland, Ohio and Kentucky. Its products and services include metro Ethernet, IP services, business advantage bundle, managed router service, broadband, voice services and Web hosting. On October 14, 2011, NTELOS Holdings Corp. announced a distribution date of October 31, 2011, for the spin-off of Lumos Networks Corp.

The Company�� broadband services include Business DSL, Dedicated Business Service, Managed Router Services, Business Broadband XL, Business PC Services and Web Hosting. Its IP services include Integrated Access, IP Trunking, IP Centrex and IP Phones. Its voice service include Business Voice, Business Advantage Bundle, nTouch, Intelligent Messaging, Simultaneous Ring, Conference Calling and Long Distance. Its data services include Metro Ethernet and Quality of Service. Lumos Networks Business DSL provides up to six megabits per second downstream and one megabit per second upstream. Its managed router support service equipment includes staging, installation, configuration, and maintenance while support provides around-the-clock monitoring, management and trouble resolution and direct access to networking experts. Its Business Broadband XL offers a selection of high download speeds. Lumos Networks' Integrated Access solution can integrate local voice, long distance, voicemail, and broadband Internet access. Lumos Networks nTouch brings voicemail linking IP Centrex and nTelos Wireless phone.

Advisors' Opinion:

[By Jake L'Ecuyer]
Top losers in the sector included NQ Mobile (NYSE: NQ), off 5.8 percent, and Lumos Networks (NASDAQ: LMOS), down 2.9 percent.

Top Headline
Citigroup (NYSE: C) reported better-than-expected first-quarter results. Citigroup's quarterly profit surged to $3.94 billion, versus a year-ago profit of $3.81 billion. On a per-share basis, it earned $1.23. Excluding one-time items, its earnings rose to $1.30 versus $1.29. Its revenue declined to $20.12 billion. However, analysts were projecting earnings of $1.14 per share on revenue of $19.37 billion.
[By Lee Jackson]
Lumos Networks Corp. (NASDAQ: LMOS) is a leading provider of fiber-based bandwidth infrastructure and IP services in key mid-Atlantic markets. It announced last month it had launched its cloud-based hosted call center solution, which provides best-in-class automated call distribution, integrated voice response and call reporting to help organizations manage call volumes more effectively and efficiently. The service operates over Lumos’s carrier-grade, premium optical network, which provides high-speed, resilient access to the call-center cloud service. The consensus price target for the stock is $20.50. Investors are paid a reasonable 2.7% dividend. Lumos closed Thursday at $20.77.
[By Jake L'Ecuyer]
Top losers in the sector included NQ Mobile (NYSE: NQ), off 5.8 percent, and Lumos Networks (NASDAQ: LMOS), down 2.9 percent.

Top Headline
Citigroup (NYSE: C) reported better-than-expected first-quarter results. Citigroup's quarterly profit surged to $3.94 billion, versus a year-ago profit of $3.81 billion. On a per-share basis, it earned $1.23. Excluding one-time items, its earnings rose to $1.30 versus $1.29. Its revenue declined to $20.12 billion. However, analysts were projecting earnings of $1.14 per share on revenue of $19.37 billion.

Hot Wireless Telecom Stocks To Watch Right Now: KDDI Corp (KDDIF)

KDDI CORPORATION is a telecommunications company. The Mobile Telecommunication segment is engaged in the provision of mobile communications services, including voice and data services, and mobile WIMAX services, as well as the sale of mobile communication terminals and the provision of contents. The Fixed-line Telecommunication segment provides broadband services, including fiber to the home (FTTH) and cable television (TV) services, as well as domestic and overseas communication services, data center services and information and communication technology (ICT) solution services. The Others segment is involved in the operation of call centers and the development of research and advanced technology. On December 2, 2013, it transferred all shares of a wholly owned subsidiary, JAPAN CABLE NET LIMITED to another subsidiary. In December 2013, the Company acquired the entire share capital in Yugen Kaisha Cosmos. Advisors' Opinion:

[By Daniel Inman]
In Tokyo, telecoms firm KDDI Corp. (JP:9433) � (KDDIF) �rose 2% after a Nikkei report said that the firm will likely report a record first-half group operating profit, with a 50% on-year increase. TDK Corp. (JP:6762) � (TTDKF) , however, dropped 0.2% after a separate Nikkei report said that the electronics-component producer will report an 8% increase in operating profit over the same period.
[By Daniel Inman]
In Tokyo, KDDI (JP:9433) � (KDDIF) �gained 0.6% after the telecommunications company reported a record-high and consensus-beating operating profit for the first half of the fiscal year, due to a stronger-than-expected increase in subscription and a rise in usage revenue.
[By MARKETWATCH]
LOS ANGELES (MarketWatch) -- Japanese stocks opened sharply higher Monday, with the Nikkei Stock Average (JP:NIK) advancing 1.1% to 14,242.86 after falling 2.8% Friday, as end-of-the-week gains for U.S. shares and some earnings news helped lift the market. The Topix also saw solid gains, up 0.8% in early moves. Major advances included a 2.5% rise for Hitachi Ltd. (JP:6501) (HTHIF) , a 4.1% surge for Mitsubishi Motors Corp. (JP:7211) (MMTOF) , and a 2.6% improvement for KDDI Corp. (JP:9433) (KDDIF) after the Nikkei business daily said the telecom will report a 50% increase for operating profit in the fiscal first half compared to a year earlier. Sony Corp. (JP:6758) (SNE) added 2% after scoring a Credit Suisse upgrade to outperform. Shares of NTT DoCoMo Inc. (JP:9437) (NTDMF) traded 1.1% higher after posting above-forecast quarterly results Friday, while JFE Holdings Inc. (JP:5411) (JFEEF) fell 3.2% after the steel producer also reported earnings.
[By MARKETWATCH]
LOS ANGELES (MarketWatch) -- With the yen holding on to its gains and investors cautious as earnings season kicks off, Japanese stocks slid lower Friday after closing the previous day with some late-session gains. The Nikkei Stock Average (JP:NIK) fell 0.9% to 14,358.28, with the Topix down 0.8%, as the dollar bought 97.36 yen, little changed from 24 hours earlier. The relatively strong yen weighed on some names with high global exposure, as Sharp Corp. (JP:6753) (SHCAF) lost 1%, Pioneer Corp. (JP:6773) (PNCOF) dropped 1.6%, and Bridgestone Corp. (JP:5108) (BRDCF) fell 1.2%. An outlook cut from Canon Inc. (JP:7751) (CAJ) helped send its shares down 1%, while rival Nikon Corp. (JP:7731) (NINOF) lost 1.8%, though Olympus Corp. (JP:7733) (OCPNF) gained 1%. Telecoms were weak, with Softbank Corp. (JP:9984) (SFTBF) falling 2.5%, KDDI Corp. (JP:9433) (KDDIF) down 1.7%, and NTT DoCoMo Inc. (JP:9437) (NTDMF)

Top Industrial Disributor Companies To Own In Right Now: Rewards Nexus Inc (ERNI)

Rewards Nexus Inc., formerly NIS Holdings Corp., incorporated on June 21, 2004, through its subsidiaries, operates in the loyalty/rewards industry. The Company has launched the Earn IQ rewards program, a consumer loyalty platform-coupled with marketing and advertising services for various industries.

The Company provides consumers with opportunities to interact and engage with online and mobile products. It primarily focuses on various business sectors, including the customer loyalty management market, the gift card industry, the online food ordering industry, and the marketing consulting industry

Advisors' Opinion:

[By Peter Graham]
Small cap stocks Rewards Nexus Inc (OTCMKTS: ERNI), MyEcheck Inc (OTCMKTS: MYEC) and ITonis Inc (OTCMKTS: ITNS) fell 29.6%, 18.92% and 9.09%, respectively, last Friday. Moreover, some of these small cap stocks are already making big moves again this morning - perhaps in part because they have all been the subject of recent paid promotions. So where are these small cap heading this week and for the long term? Here is a quick reality check:

Hot Wireless Telecom Stocks To Watch Right Now: Stream Group Ltd (SGO)

Stream Group Limited, formerly LongReach Group Limited, is an Australia-based company operating in the information and communications technology (ICT) sector. The Company is engaged in the design, integration, installation and maintenance of integrated information and communications technology based products and services to the defense, public safety and security sectors, as well as for government, telecommunications and corporate customers, both locally and internationally. The Company together with its subsidiaries is also engaged in the provision of consulting services to certain key defense organizations. In January 2013, the Company sold its C4i business. Advisors' Opinion:

[By Jonathan Morgan]
Saint-Gobain (SGO) dropped 3.7 percent to 36.87 euros. Morgan Stanley cut its rating on the stock to underweight, similar to a sell recommendation, from equal weight, saying it doesn�� see a recovery yet in the European building industry and the contribution from emerging markets will slow.

Hot Wireless Telecom Stocks To Watch Right Now: T-Mobile US Inc (TMUS)

T-Mobile US, Inc., formerly MetroPCS Communications, Inc., incorporated on March 10, 2004, is a wireless telecommunications carrier, which offers wireless broadband mobile services primarily in metropolitan areas in the United States, including the Atlanta, Boston, Dallas/Fort Worth, Detroit, Las Vegas, Los Angeles, Miami, New York, Orlando/Jacksonville, Philadelphia, Sacramento, San Francisco and Tampa/Sarasota metropolitan areas. Its flagship brands include T-Mobile and MetroPCS. As of December 31, 2012, it held licenses for wireless spectrum suitable for wireless broadband mobile services covering a total population of 144 million people in and around many of the metropolitan areas in the United States. It provides its services using code division multiple accesses (CDMA) networks using 1xRTT technology and evolution data optimized (EVDO) and fourth generation long term evolution (4G LTE).

The Company has roaming agreements with other wireless broadband mobile carriers that allow them to offer its customers service in many areas when they are outside its service area. These roaming agreements, together with the area it serve with its own networks, allows its customers to receive service in an area covering over 280 million in total population under the Metro USA brand. The Company sells products and services to customers through its Company-owned retail stores, as well as indirectly through relationships with independent retailers and third party dealers. Its service allows its customers to place unlimited local calls from within its local service area and to receive unlimited calls from any area while in its service area, for a flat-rate monthly service fee. For additional usage fees, it also provide certain other value-added services. All of these plans require payment in advance for one month of service. If no payment is made in advance for month of service, service is suspended at the end of the month that was paid for by the customer and, if the customer does not pay within 30 day! s, the customer is terminated. It believes its service plans differentiate them from the more complex plans and long-term contract requirements of traditional wireless carriers.

The Company voice services allow customers to place voice calls to, and receive calls from, any telephone in the world, including local, domestic long distance, and international calls. Its voice services also allow customers to receive and make calls while they are located in areas served by its networks and in those geographic areas served by the networks of certain other wireless broadband mobile carriers with whom it has roaming arrangements. The Company�� data services include text messaging services (domestic and international); multimedia messaging services; mobile Internet access; mobile instant messaging; location-based services; social networking services; push e-mail; multimedia streaming and downloads; and services provided, depending on the network and locale, through the Binary Runtime Environment for Wireless, or BREW, Blackberry, Windows, and the Android platforms, such as ringtones, ring back tones, games, content, and applications.

The Company�� Custom calling features offers custom calling features, including caller ID, call waiting, three-way calling and voicemail. Its Advanced handsets sells a variety of feature phones, and increasingly, smartphones, predominately manufactured by nationally recognized manufacturers for use on its network, including models that have cameras, include HTML browsers, play music, play streaming audio, display streaming video and downloaded video, and have other features facilitating digital data. It sells a variety of handsets using vendor or handset specific operating systems, such as BREW, Blackberry, Windows, and the Android operating system.

The Company provides its wireless broadband mobile services using paired personal communications services (PCS), spectrum and advanced wireless services, or AWS, spectrum. In addition, it holds a! license ! for 12 MHz of paired 700 MHz Lower Band A spectrum in the Boston-Worcester, MA/NH/RI/VT basic economic area (BEA), which, unless it receives a waiver from the Federal Communications Commission (FCC), of the four year construction requirements, it plans to construct in the first half of 2013. In each of its metropolitan areas where irt provides service. As of December 31, 2012, it holds between 10 mega hertz (MHz) and 60 MHz of paired spectrum and on average it has approximately 22 MHz of paired spectrum in the metropolitan areas it serves. In the aggregate, as of December 31, 2012, it offers wireless broadband mobile services using its own network.

The Company operates 1xRTT CDMA networks in all of the metropolitan areas it serves and it has upgraded its networks to 4G LTE in all of metropolitan areas. It also has deployed EVDO at selected high use sites in its CDMA network to increase network data capacity to meet the growing data needs of iy customers. Its network includes a mobile switching center (for CDMA), enhanced packet core (for 4G LTE), and IP core. These serve several purposes, including routing traffic, managing call handoffs, and managing access to the public switched telephone network (for CDMA) or the Internet (CDMA and 4G LTE). These network elements also provide access to voicemail and other value-added services, base stations (for CDMA) or eNodeBs (for 4G LTE), cell sites or distributed antenna system (DAS), nodes, and backhaul facilities, which carry traffic to and from its cell sites and its switching or enhanced packet core facilities, consisting of a combination of dedicated circuits, cable, fiber, and microwave facilities.

Its cell sites in the network are co-located, meaning its equipment is located on leased facilities that are owned by third parties who retain the right to lease the locations to additional carriers and in many cases other wireless broadband mobile service providers already have facilities at such locations. The switching centers and na! tional op! erations center provide around-the-clock monitoring of its network. Its switches connect to the public switched telephone network through fiber rings leased from third-parties, which transmit originating and terminating traffic between its equipment and local exchange and long distance carriers. It also has negotiated interconnection agreements with relevant local exchange carriers, or LECs, in its service areas. It uses third-party providers for domestic and international long distance services, international SMS interconnection with the public switched network and other carriers, roaming services, and the majority of its backhaul services.

The Company competes with AT&T, Verizon Wireless, Sprint Nextel, T-Mobile USA , Deutsche Telekom, Clearwire, Dish Network , Time Warner Cable, Comcast, Cox Communications, Cricket Communications, Leap Wireless International and Google.

Advisors' Opinion:

[By WALLSTCHEATSHEET]
T-Mobile is attempting to revolutionize the communications industry by providing less restricted products and services to consumers and companies. The company is planning a stock offering of close to $2 billion as the fourth-largest wireless carrier in the U.S. looks to raise money to expand its 4G network. The stock has been surging higher since its IPO and is currently trading near all time highs. Over the last four quarters, earnings have been mixed while revenues have been rising, which has produced conflicting feelings among investors in the company. Relative to its peers and sector, T-Mobile has been a year-to-date performance leader. Look for T-Mobile to OUTPERFORM.
[By Bradford Frischkorn var popups = dojo.query(".socialByline .popC"); popups.fo]
SoftBank announced plans to buy Sprint Nextel(S) Corporation for $20.1 billion last fall, and is still trying to convince U.S. regulators to allow it to buy T-Mobile(TMUS) of the U.S.
[By Evan Niu, CFA, Eric Bleeker, CFA, and Chris Hill]
In the following video, Fool analysts Evan Niu and Eric Bleeker look at the good, the bad, and the ugly in Apple's earnings. Beyond better-than-expected iPhone sales, the storyline was really how the company continues outperforming in America. In this quarter's report, the addition of T-Mobile (NYSE: TMUS ) provided some new tailwinds to growth. As far as the "bad" and "ugly," the two look at Apple's first year-over-year decline in tablets and weakness in Greater China and what might be causing results in those areas that were worse than expected.�