Wednesday, October 29, 2014

Nearly 60,000 Pounds of Chicken Parts Recalled Nationwide

#fivemin-widget-blogsmith-image-350949{display:none}.cke_show_borders #fivemin-widget-blogsmith-image-350949,#postcontentcontainer #fivemin-widget-blogsmith-image-350949{width:570px;display:block} Meat Company Recalls Nearly 32,000 Pounds Of Breaded Chicken Two food production companies recalled nearly 60,000 pounds of chicken products because of possible staph and Salmonella contamination, the Agriculture Department's Food Safety and Inspection Service said. A third company recalled 377 pounds of broccoli kale salad with chicken. Murray's Inc. of Lebanon, Pennsylvania, on Sunday recalled 31,689 pounds of gluten free breaded chicken products that may be contaminated with Staphylococcal enterotoxin, the FSIS said. The products are dated Aug. 9 and were packed in 12-ounce and 10.5-ounce boxes under the Bell & Evans brand. The problem was discovered by the Colorado Department of Agriculture during a retail surveillance and sampling program. Staphylococcal food poisoning is a gastrointestinal illness. Aspen Foods Division of Koch Meats of Chicago on Saturday recalled 28,980 pounds of chicken products that may be contaminated with Salmonella Enteritidis, FSIS said. The chicken was sold under the Antioch Farms brand name in five-ounce packets with sell-by dates of Oct. 1 and Oct. 7. Salmonellosis produces diarrhea, abdominal cramps and fever within 72 hours of consumption. Taylor Farms of Swedesboro, New Jersey, on Saturday recalled 377 pounds of Signature Cafe Broccoli Kale Salad with chicken for misbranding that neglected to list walnuts among the ingredients. The salads were sold in 9.75-ounce plastic clam shell packages with use-by dates of Oct. 23, 25 and 27.

Tuesday, October 28, 2014

Apple Pay: Winners and Losers From Apple Inc.’s Game-Changing Payment Service

Apple (NASDAQ: AAPL  ) , stock has absolutely smoked the broad market indices over the last year, giving shareholders a fantastic ride in the process.

AAPL Chart
Source: YCharts.

Much of this uptick, particularly in the past several months, can be attributed to the excitement over Apple's recently refreshed product cycle, notably the iPhone 6 and 6 Plus and the massive sales they're expected to trigger.

As part of its smartphone overhaul, Apple completely redesigned the hardware and form factor for the iPhone 6 and 6 Plus, echoing the Daft Punk hit in making its latest iPhones harder, better, faster, and stronger (if you're lost, Google it). However, Apple also used the iPhone redesign to introduce what is likely to be another hugely popular feature: Apple Pay, the mobile payment system that launched earlier this week.

As Apple Pay garners press and consumer attention, let's look at several of the companies that stand to gain or lose as the result of this important new feature.

Three big winners with Apple Pay
I'll lump the central beneficiaries of Apple Pay into three categories: the credit card companies, the major banks that have signed on to the system, and the hardware suppliers that enable Apple Pay's operations.

Since both banks and credit card companies benefit from Apple Pay in much the same way, I'll further lump them together for purposes of this discussion. It doesn't take an overly keen observer to note that these combined financial institutions stand to gain as the result of Apple's new payment platform. True, Apple Pay will eat into the value of each transaction (Apple reportedly receives $0.15 for every $100 of transactional value), but there's little question that the system's ease of use should help increase aggregate payment volumes for banks and expand the overall use of consumer credit for the credit card companies.  On top of seeing increased point-of-sale transaction volumes, these two kinds of financial institutions also believe Apple Pay will drive a significant uptick in mobile e-commerce sales by finally providing the kind of secure and seamless option many small websites need.  So while Apple will certainly eat into their margins, the credit card companies such as Visa (NYSE: V  ) , MasterCard (NYSE: MA  ) , and American Express (NYSE: AXP  )  and major banks like Wells Fargo (NYSE: WFC  ) , JPMorgan Chase (NYSE: JPM  ) , Citi (NYSE: C  ) , are certainly right in their optimistic view of Apple Pay.

The third major winner are the companies that provide the "guts" that will make Apple Pay hum. Multiple names could serve as derivative plays, but one company here strikes me as the most singularly aligned with Apple Pay's expansion: NXP Semiconductors  (NASDAQ: NXPI  ) . This company's technology powers Apple's motion-sensing M8 chip. It's also a leader in producing near field communication, or NFC, chips that

Source: Apple.

power the tap-and-go functionality in Apple Pay. Various teardown services have confirmed the presence of NXP's NFC chips (try saying that five times fast) in Apple's new iPhones. And although Apple's latest iPads isn't available for inspection at the moment, the recent inclusion of Apple Pay in the iPad refresh also bodes well for NXP Semi. 

Two big losers from Apple Pay
As is probably no giant surprise, eBay's (NASDAQ: EBAY  ) PayPal will likely see its business and market share challenged by Apple Pay. The problem lies in assessing just how material a threat Apple Pay really presents here.

According to industry rumors, Apple excluded PayPal from Apple Pay after PayPal inked a deal with Samsung that enables Galaxy S5 phone users to purchase items using PayPal and the GS5's fingerprint scanner. The ramifications for PayPal of being excluded from Apple Pay aren't entirely clear. However, with Apple teaming up with nearly all of PayPal's major competitors, and the likelihood of Apple Pay's eventual success, PayPal's position as the odd man out should justifiably alarm investors. Perhaps that's why no fewer than three sell-side analysts downgraded eBay stock in the wake of Apple Pay's introduction. It's also worth noting that PayPal could eventually partner with Apple, but for now, Apple Pay will only help PayPal's competition gain share in the budding mobile payments space.

The other company that Apple Pay could acutely impact, and the one that surprisingly few people are talking about, is Samsung itself. Samsung has been largely unsuccessful in fighting a two-front war over the past year: Its premium phone business has proven

Source: Apple.

lackluster, delivering back-to-back dud releases with the Galaxy S4 and Galaxy S5 while lower-cost rivals like China's Xiaomi drive down margins at the lower end of the market. With each successive release of a premium smartphone, Samsung hopes to steal some share from Apple. Its success has been limited, and the introduction of Apple Pay should only help to increase the stickiness of Apple's smartphone business as consumers will now face marginally higher switching costs from Apple to Samsung. Count on Samsung to roll out a more robust mobile payments app in the months ahead; in the meantime, Apple Pay should once again provide Apple a compelling opportunity to attract and retain more users in the most lucrative segment of the smartphone market.

Apple is the biggest winner
Overall, the introduction of Apple Pay is likely to most acutely benefit Apple itself more than any other company. Many analysts have likened the dawn of Apple Pay to another "iTunes" moment, and that's likely to be at least partly true. It's a testament to Apple's massive corporate clout that it was able to align the various entrenched interests in the payments space enough to finally bring mobile payments into the mainstream.

Forget Apple Pay, next hit Apple product revealed
Apple recently revealed the product of its secret-development "dream team" -- Apple Watch. The secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see where the real money is to be made, just click here!

Monday, October 27, 2014

Howard Lutnick donates $25 million to college

howard lutnick NEW YORK (CNNMoney) This isn't just any donation from a big money Wall Street CEO to his alma mater.

Howard Lutnick's philanthropic efforts -- especially since the September 11 attack that claimed hundreds of his New York employees -- got $25 million deeper this weekend.

The gift is his largest to Haverford College. Lutnick's mother died when he was in high school, and his father passed in his freshman year. The school covered his tuition, and Lutnick graduated in 1983.

The donation is the cornerstone of a $225 million capital improvement project and brings his total contributions to the Philadelphia-area liberal arts college to $65 million, the school said.

Lutnick has become known for his donations, and those of the brokerage Cantor Fitzgerald.

Each year on 9/11, the company donates that day's profits to charity. The firm says it has so far made contributions totaling $101 million.

Saturday, October 25, 2014

Celgene: What Happened to the Buybacks?

There wasn’t much to complain about in Celgene (CELG) earnings report yesterday, which caused the biotech company’s shares to pop 6%. Bernstein’s Geoffrey Porges and Wen Shi point to Celgene’s declining buybacks:

During the quarter the company purchased a relatively modest 2.8mm shares for $252mm, compared to $2.2bn in share buybacks in the first half of the year…Our share count estimate is increased by 1-5% starting in 2015 due to lower buyback activity during the quarter…

The company’s share buyback activity was again lighter than we had anticipated, suggesting that the company either views their stock as more or less fairly valued in its recent range, or is husbanding their cash for strategic purposes.

Shares of Celgene have gained 2.78% to $103.13 at 2:28 p.m. today.

Friday, October 24, 2014

Twitter (TWTR) Earnings Report: Will The Jury Still Be Out? FB & LNKD

The Q3 2014 earnings report for Twitter Inc (NYSE: TWTR), who's potential benchmarks include social media stocks Facebook Inc (NASDAQ: FB) and LinkedIn Corp (NYSE: LNKD), is scheduled for after the market closes on Monday (October 27th). Aside from the Twitter Inc earnings report, it should be said that Facebook Inc will report Q3 2014 earnings after the market closes next Tuesday (October 28th) and LinkedIn Corp will report Q3 2014 earnings after the market closes next Thursday (October 30th). Shares soared around 30% the last time when Twitter Inc reported stronger than expected earnings.

What Should You Watch Out for With the Twitter Inc Earnings Report?

First, here is a quick recap of Twitter Inc's recent earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimates page:

Earnings History Dec 13Mar 14Jun 14
EPS Est N/A -0.02 -0.03 -0.01
EPS Actual N/A 0.02 0.00 0.02
Difference N/A 0.04 0.03 0.03
Surprise % N/A 200.00% 100.00% 300.00%
 
EPS TrendsCurrent Qtr.
Sep 14Next Qtr.
Dec 14Current Year
Dec 14Next Year
Dec 15
Current Estimate 0.01 0.06 0.10 0.38
7 Days Ago 0.01 0.06 0.10 0.37
30 Days Ago 0.01 0.06 0.10 0.37
60 Days Ago 0.01 0.06 0.10 0.36
90 Days Ago 0.00 0.06 0.04 0.27

 

Back in late July, Twitter Inc reported that second quarter revenues were up 124% to $312 million while the GAAP net loss was $145 million (including $158 million in stock-based compensation expense) verses $42 million in the same period last year. Key operational highlights include a 24% year-over-year increase in Average Monthly Active Users (MAUs) to 271 million as of June 30th, Mobile MAUs increased 29% year-over-year to reach 211 million (representing 78% of total MAUs), timeline views increased 15% year-over-year to reach 173 billion and advertising revenue per thousand timeline views increased 100% to $1.60. The company also raised its revenue outlook for the year to between $1.31 billion to $1.33 billion – up from an earlier guidance of $1.2 billion to $1.25 billion.

After earnings, Sterne Agee analyst Arvind Bhatia commented:

"The expectations going in had become quite low. Even in the U.S. their performance was good. For now, that will put to rest some of the concerns about U.S. growth… One would still have to say that the jury is still out. You have to look maybe at what happens in the next quarter and see if they can continue to have upside on the user growth."

However despite the efforts of Twitter Inc's CEO to refocus the narrative on year-over-year growth and other numbers that look good, some on Wall Street did notice that MAUs only grew 6% sequentially, roughly the same percentage number they grew in the first quarter.
 

What do the Twitter Inc Charts Say?

The latest technical chart for Twitter Inc shows shares dipping and then bottoming out by May before trending upward again:

Long term performance charts show that both Facebook Inc and LinkedIn Corp, despite some hiccups, have put in pretty decent performances for retail investors.

Technical charts for both Facebook Inc and LinkedIn Corp show spring time dips that both have largely recovered from:

What Should Be Your Next Move?

At some point, investors will begin to notice if Twitter Inc is not showing solid sequential growth numbers along with something at the bottom line. As what Arvind Bhatia said, the jury is still probably out on Twitter Inc and whether its a better bet than social media giant Facebook Inc and professional networking stock LinkedIn Corp. 

Tuesday, October 21, 2014

HBO Streaming Service Coming in 2015: A Deathblow for Cable?

Source: Time Warner.

Cord-cutters rejoiced last week when HBO CEO Richard Plepler told analysts the premium-cable channel will launch an over-the-top streaming service in the U.S. next year. It was just last month when Time Warner (NYSE: TWX  ) CEO Jeff Bewkes said taking HBO direct to consumers was more viable and more interesting than in the past.

Plepler said there are 10 million to 15 million broadband-only households in the U.S. that currently have no way of accessing HBO legally. This has led to an increasing number of password sharers and a ridiculous amount of piracy. But will going over the top increase the number of broadband-only households, striking a deathblow for pay-TV operators like AT&T (NYSE: T  ) and Comcast (NASDAQ: CMCSA  ) ?

HBO and cable are splitting up
In the past year, HBO has been experimenting with cable operators more and more. It launched a bundle with Comcast that gave subscribers broadband Internet and access to HBO through a very basic cable package. It cost just $40 to $50 per month. Not to be outdone, AT&T launched a new bundle last month that offered a similar deal and packaged a year of Amazon Prime for $40 per month.

HBO seemingly had a different goal than AT&T and Comcast with these bundles. Those prices are introductory offers, and subscribers can expect their rates to increase after 12 months. But Comcast and AT&T are using the bundles to attract more subscribers to video packages, potentially up-selling them in the future, and at least keeping them as broadband customers.

For HBO, those introductory prices offer excellent data as to how much people are willing to pay for a stand-alone HBO streaming service. Still, HBO must tread carefully into a stand-alone service, as the costs may be higher than they seem. Netflix (NASDAQ: NFLX  ) has seen its costs for content delivery balloon as it gains subscribers and Internet service providers (the same as the pay-TV operators) charge the company for better access to their networks.

HBO currently relies on pay-TV operators to do a lot of the legwork for it. They promote the network, handle billing, operate customer service, and deliver the content through their cable infrastructure. That all goes out the door if HBO undercuts the operators and they drop their overwhelming support of the network.


Millions will soon have access to Emmy-winning shows True Detective (left) and Veep (right). Source: Time Warner.

Cable's not in trouble... yet
The fact that HBO -- and its parent company, Time Warner -- relies on cable operators so much means it's not going to do anything it thinks could harm that relationship. The growth of Netflix over the last few years is a strong indication that most cable subscribers view over-the-top services as a supplement to cable rather than a replacement.

Plepler noted that there are about 10 million to 15 million broadband-only households in the U.S. Even if each of them had a Netflix subscription, that leaves 22 million to 27 million U.S. cable subscribers that also have a Netflix account. That's on par with HBO.

The bigger impact could be on the number of "cord-nevers," people who never subscribed to cable in the first place. Those HBO-centric bundles don't look nearly as enticing if you can get Internet access from the best provider in your area and HBO directly from Time Warner. HBO will become part of a growing number of services offered on the a la carte menu that includes Netflix, Hulu, Amazon, iTunes, and now HBO.

The problem for pay-TV operators will be if HBO is successful going over the top, it may lead other networks to try their hand at it. Last month, CBS's Les Moonves noted Showtime may be interested in going over the top, and the company just started offering a live streaming service of its broadcast network.

As the a la carte TV menu grows and the options get better, cutting the cord does start to look more attractive. The onus is on content companies, though, to make sure that doesn't happen -- especially those that make most of their money from cable operators, not their viewers. It's a huge undertaking to go a la carte, and most networks don't have the infrastructure, let alone the economic incentive, to make the jump.

The cable bundle isn't going anywhere
Both cable companies and networks love the cable bundle. Consumers love to hate it. But a la carte HBO won't completely disrupt the cable bundle. If it did, AT&T and Comcast wouldn't offer their HBO plus Internet packages. After all, HBO is already an add-on service, and isn't included in most bundles.

The upcoming HBO streaming service will make it harder for pay-TV operators to convert broadband-only households into video subscribers, though. And if it marks the beginning of more premium channels offering direct-to-consumer products, it could eventually spur a round of cord-cutting. For people who love basic cable channels -- like Time Warner's other networks -- and sports, the only way they're going to get that content, in the near future at least, is through the cable bundle.

Your cable company is scared, but you can get rich
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple.

Sunday, October 19, 2014

4 Stocks Rising on Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Rocket Stocks for a Tumbling Market

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Stocks Insiders Love Right Now

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Mattress Firm

Mattress Firm (MFRM), through its subsidiaries, operates as a specialty retailer of mattresses, and related products and accessories in the U.S. This stock closed up 3.6% to $46.92 in Wednesday's trading session.

Wednesday's Volume: 621,000

Three-Month Average Volume: 221,623

Volume % Change: 208%

From a technical perspective, MFRM spiked notably higher here right above its 50-day moving average of $44.68 with above-average volume. This move is quickly pushing shares of MFRM within range of triggering a big breakout trade. That trade will hit if MFRM manages to take out some near-term overhead resistance levels at $48 to its all-time high at $49.81 with high volume.

Traders should now look for long-biased trades in MFRM as long as it's trending above its 50-day at $44.68 or above more support at $44.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 221,623 shares. If that breakout hits soon, then MFRM will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $55 to $60.

Precision Drilling

Precision Drilling (PDS) operates as an oilfield services company primarily in Canada, the U.S., Mexico and the Middle East. This stock closed up 5.8% to $12.47 in Wednesday's trading session.

Wednesday's Volume: 8.02 million

Three-Month Average Volume: 1.98 million

Volume % Change: 325%

From a technical perspective, PDS gapped up sharply higher here right above some near-term support at $11.69 with heavy upside volume. This move briefly pushed shares of PDS into breakout territory, after the stock flirted with some near-term overhead resistance at $12.49. Shares of PDS close just below that level at $12.47, but very close to its intraday high of $12.53. Market players should now look for a continuation move higher in the short-term if PDS manages to take out Wednesday's high of $12.53 with strong volume.

Traders should now look for long-biased trades in PDS as long as it's trending above Wednesday's low of $12.05 or above more key near-term support at $11.69 and then once it sustains a move or close above $12.53 with volume that hits near or above 1.98 million shares. If that move starts soon, then PDS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that action are $14 to $15.

Conmed

Conmed (CNMD) provides surgical devices and equipment for minimally invasive procedures and monitoring. This stock closed up 6.5% at $48.21 in Wednesday's trading session.

Wednesday's Volume: 599,000

Three-Month Average Volume: 200,934

Volume % Change: 233%

From a technical perspective, CNMD ripped sharply higher here back above its 50-day moving average of $45 with strong upside volume. This move pushed shares of CNMD into breakout territory, after it took out some near-term overhead resistance at $47.58 and flirted with more resistance at $48.88. Market players should now look for a continuation move higher in the short-term if CNMD manages to take out Wednesday's high of $49.07 to its 52-week high at $49.10 with high volume.

Traders should now look for long-biased trades in CNMD as long as it's trending above Wednesday's low of $46 or above its 50-day at $45 and then once it sustains a move or close above those breakout levels with volume that hits near or above 200,934 shares. If that breakout triggers soon, then CNMD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $55 to $60.

Hexcel

Hexcel (HXL), together with its subsidiaries, engages in the development, manufacture and marketing of lightweight and high-performance structural materials for use in commercial aerospace, space and defense, and industrial applications. This stock closed up 2.4% at $43.44 in Wednesday's trading session.

Wednesday's Volume: 1.02 million

Three-Month Average Volume: 641,881

Volume % Change: 77%

From a technical perspective, HXL jumped notably higher here back above its 50-day moving average of $43.17 with above-average volume. This stock recently pulled back right to its 200-day moving average and has subsequently bounced higher off that level. Market players should now look for a continuation move to the upside in the short-term if HXL can manage to take out Wednesday's high of $43.45 to some more near-term overhead resistance at $44.38 with high volume.

Traders should now look for long-biased trades in HXL as long as it's trending above Wednesday's low of $42.47 or above $41.50 and then once it sustains a move or close above $43.45 to $44.38 with volume that's near or above 641,881 shares. If that move kicks off soon, then HXL will set up to re-test or possibly take out its next major overhead resistance levels at $45.51 to its 52-week high at $46.46.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>2 Oversold Stocks Ready to Bounce Higher



>>5 Stocks Set to Soar on Bullish Earnings



>>5 REIT Trades Worth Buying in April

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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


Wednesday, October 15, 2014

3 Biotech Stocks Under $10 in Breakout Territory

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

Must Read: Warren Buffett's Top 10 Dividend Stocks

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

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

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

Must Read: 10 Stocks George Soros Is Buying

Regado Biosciences

Regado Biosciences (RGDO), a biopharmaceutical company, focuses on the discovery and development of antithrombotic drug systems for acute and sub-acute cardiovascular and other indications. This stock closed up 8.8% to $1.11 in Tuesday's trading session.

Tuesday's Range: $0.97-$1.11

52-Week Range: $0.96-$14.10

Tuesday's Volume: 597,000

Three-Month Average Volume: 768,826

From a technical perspective, RGDO ripped sharply higher here right above its 52-week low of 96 cents per share with lighter-than-average volume. This move pushed shares of RGDO into breakout territory, since the stock cleared some near-term overhead resistance at $1.09. Shares of RGDO are now starting to trend within range of triggering a much bigger breakout trade. That trade will hit if RGDO manages to take out some more key overhead resistance levels at $1.13 to $1.16 and then once it clears $1.20 to $1.25 with high volume.

Traders should now look for long-biased trades in RGDO as long as it's trending above its 52-week low of 96 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 768,826 shares. If that breakout kicks off soon, then RGDO will set up to re-test or possibly take out its next major overhead resistance level at its gap-down-day high from August of $1.44. Any high-volume move above $1.44 will then give RGDO a chance to re-fill some of its gap-down-day zone that started just above $2.80.

Must Read: 5 Breakout Trades Beating the Market Slump

Rock Creek Pharmaceuticals

Rock Creek Pharmaceuticals (RCPI), a pharmaceutical company, focuses on the research, development and commercialization of compounds and formulations targeting inflammatory and neurological disorders. This stock closed up 2.3% to 32 cents per share in Tuesday's trading session.

Tuesday's Range: $0.30-$0.35

52-Week Range: $0.24-$2.59

Tuesday's Volume: 1.33 million

Three-Month Average Volume: 886,477

From a technical perspective, RCPI trended modestly higher here back above its 50-day moving average of 31 cents per share with above-average volume. This stock recently formed a major bottoming chart pattern, since shares found buying interest at 24 cents, 23 cents and 25 cents per share. Since forming that bottom, shares of RCPI have started to spike higher and move back above its 50-day moving average. That move is now quickly pushing shares of RCPI within range of triggering a big breakout trade. That trade will hit if RCPI manages to take out Tuesday's intraday high of 35 cents per share and then once it clears more key overhead resistance levels at 37 cents to 42 cents per share with high volume.

Traders should now look for long-biased trades in RCPI as long as it's trending above 29 cents per share or above 25 cents to 23 cents per share and then once it sustains a move or close above those breakout levels with volume that hits near or above 886,477 shares. If that breakout develops soon, then RCPI will set up to re-test or possibly take out its next major overhead resistance levels at 53 cents per share to its 200-day moving average of 63 cents per share.

Must Read: 5 Hated Earnings Stocks You Should Love

Actinium Pharmaceuticals

Actinium Pharmaceuticals (ATNM), a biotechnology company, develops drugs for the treatment of cancer. This stock closed up 6.6% to $6.86 in Tuesday's trading session.

Tuesday's Range: $6.39-$7.03

52-Week Range: $4.30-$15.00

Tuesday's Volume: 108,000

Three-Month Average Volume: 77,691

From a technical perspective, ATNM ripped sharply higher here right off its 50-day moving average of $6.32 with above-average volume. This move briefly pushed shares of ATNM into breakout territory, since the stock flirted or took out some key near-term overhead resistance levels at $6.69 to $6.88. Shares of ATNM tagged an intraday high of $7.03, before it closed just below that level at $6.86. Market players should now look for a continuation move to the upside in the short-term if ATNM manages to clear Tuesday's intraday high of $7.03 with strong upside volume flows.

Traders should now look for long-biased trades in ATNM as long as it's trending above its 50-day at $6.32 and then once it sustains a move or close above $7.03 with volume that hits near or above 77,691 shares. If that move gets underway soon, then ATNM will set up to re-test or possibly take out its next major overhead resistance levels at $7.50 to $7.77, or even its 200-day at $8.05. Any high-volume move above $8.05 will then give ATNM a chance to tag $9 to $10.

Must Read: 5 Rocket Stocks to Buy for a Shaky Market

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

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>5 Short-Squeeze Stocks Set to Soar on Bullish Earnings



>>4 Stocks Rising on Unusual Volume



>>Sell These 5 Toxic Stocks Before the Next Drop

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

CNBC.com and Forbes.com.

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


Monday, October 13, 2014

Tesla Falls Again, But Credit Suisse Is ‘Substantially’ More Confident

Tesla Motors (TSLA) was down more than 5% on Monday morning, following Friday's downbeat reaction to the Model D's unveiling late Thursday.

However, Credit Suisse's Daniel Galves is out defending Tesla and his $325 price target today. Galves and his team write that their confidence that Tesla will be "a disruptive force" is higher than ever, given the new features introduced last week and a series of meetings with management.

Highlights from their note:

Speed to market astounding: After just more than 1 year of development, Tesla has gone from no driver-assist technology to best-in-class. This, plus dual-motor, essentially makes initial Model S vehicles virtually obsolete only 2 years after launch. Additionally, dual motor all-wheel-drive intro is a proof-point that Model X is on-track and that it will be even more differentiated vs premium SUV competition than Model S is vs. premium sedans.

Capacity path on-track and recent actions should increase demand: Tesla is on-track to increase production capability to 150k+ annualized in 2H15 from 40k in 2Q14, which should drive major margin expansion in 2H15 (we see $7 per share of earnings power at 100k units in FY2016). Introduction of cutting-edge active safety technology, dual motor / all-wheel drive, and a consumer lease offering are all actions that we see as positives for near- and long-term demand and margin.

Increased confidence on battery cost reductions: The company is now openly talking about $150 / kwh as a reasonable estimate for 2017, which implies ~$7k per-unit for base Model 3 (very near cost parity with internal combustion powertrains) and a cost decrease of ~$6k/unit on Model S/X.

Over time, Galves believes that the inherent advantages of electric cars will lead to demand well ahead of Tesla's production capabilities and higher margins than those enjoyed by other luxury car makers.

Friday, October 10, 2014

Dividend Aristocrats: Time to Buy Family Dollar Stores Inc.?


Photo: Family Dollar

It's always smart to consider dividend-paying stocks for your portfolio, as dividends can be such powerful wealth boosters. (Really -- they're not just for retirees!) A great place to find some solid contenders is among Dividend Aristocrats, companies that have raised their payouts annually for at least the last 25 years. Let's get to know one Dividend Aristocrat, Family Dollar Stores  (NYSE: FDO  ) , and see whether this is a good time to invest in some shares.

Nuts and bolts
Tracing its roots back to a store in Charlotte, N.C., in 1959, Family Dollar's empire now spreads across more than 8,000 locations in 46 states. Focusing on value and convenience, its stores offer name-brand and private-label goods spanning foods, toys, cleaning supplies, apparel, home decorations, health and beauty items, and much more. The chain's typically modest footprint per store (about 7,000 square feet) lets it squeeze into many locations, from rural areas to cities.

 

Photo: Family Dollar

Why Family Dollar is appealing
Why would someone want to own stock in Family Dollar? Let's start with its dividend, which yields 1.6%. That might not seem extremely generous, but it has been increased by an annual average of 18% over the past five years. And with its payout ratio recently below 50%, there seems plenty of room for further growth. The company has raised its dividend for 38 consecutive years.

Another attraction is that the company tends to perform well in economic downturns. Many other retailers and manufacturers get whacked when financially worried consumers rein in their spending, but discount retailers tend to see business pick up at such times. Indeed, in 2008, when the S&P 500 plunged 37%, Family Dollar gained 38% and was the top  performer in the index, while peers Big Lots only lost 9% and Dollar Tree popped 61%.

The biggest news surrounding Family Dollar these days is that Dollar Tree and Dollar General have been angling to merge with or buy the company, and activist shareholder Carl Icahn is pushing Family Dollar to go for it. Part of the reasoning behind such a combination is that a bigger discount-store entity can more effectively compete with the likes of Wal-Mart. Family Dollar has been rebuffing advances, but now appears interested in Dollar Tree's offer. Some have speculated that it might make sense for Wal-Mart to enter the fray, too. Dollar Tree recently had about 5,000 stores, which would bring the combined total to more than 13,000 locations and make the new company the largest discount retailer in America. While Family Dollar has focused on urban and rural locations, Dollar Tree is more suburban, and its customer base is a little wealthier, in general, than Family Dollar's lower- to lower-middle-income customers.

Why you might hold off on Family Dollar
If you're drawn to Family Dollar because of the potential from a merger, be careful. Such a deal has yet to be inked, and any deal might still be derailed by antitrust concerns.

On its own, Family Dollar has underperformed its peers on many metrics, such as revenue per square foot and profit margins. It is working on improving its numbers, though, in part by closing hundreds of underperforming stores and opening new sites.

The company's financial statements offer some reasons to worry, too, such as falling profit margins and negative free cash flow. (Price cuts on merchandise have contributed to falling margins.) Its debt far outstrips its cash, and inventories have been rising, suggesting more product is languishing on shelves. Management, meanwhile, has blamed the poor economy -- but the poor economy helped the company in the past, and seems to be aiding its rivals now. Thus, management's defense for poor performance isn't too convincing.

Is it time to buy?
There are plenty of reasons to want to buy into Family Dollar, but its valuation is not compelling at recent levels. Current and forward-looking P/E ratios of 25 and 23, respectively, are well above the company's five-year average of 17. Its price-to-sales ratio of 0.9 tops its five-year average (0.7) and the industry average (0.6). Part of the reason for this is that the stock has been bid up as takeover offers have been made at increasingly higher levels. Whether a buyout happens or not, the stock seems overvalued right now.

Go ahead and keep an eye on Family Dollar, but this doesn't seem to be best time to buy this Dividend Aristocrat.

Even better: top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their nondividend-paying counterparts over the long term. Our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here.

Tuesday, October 7, 2014

2 Stocks Spiking on Unusual Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Must Read: Must-See Charts: How to Trade 5 Big Stocks for Big Gains

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Must Read: 5 Stocks Ready for Breakouts

Bruker

Bruker (BRKR), together with its subsidiaries, designs, manufactures, sells and services proprietary life science and materials research systems and associated products worldwide. This stock closed up 3.8% to $19.23 in Friday's trading session.

Friday's Volume: 3.99 million

Three-Month Average Volume: 795,100

Volume % Change: 395%

From a technical perspective, BRKR jumped higher here right above some near-term support at $18.41 with heavy upside volume flows. This stock has been downtrending badly for the last three months, with shares falling sharply from its high of $24.90 to its recent low of $18.41. During that downtrend, shares of BRKR have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of BRKR have now started to rebound off that $18.41 low with massive upside volume, and a trend change could now be developing for shares of BRKR. Market players should now look for a continuation move to the upside in the short-term if BRKR manages to take out Friday's intraday high of $19.27 with strong volume.

Traders should now look for long-biased trades in BRKR as long as it's trending above that recent low of $18.41 and then once it sustains a move or close above $19.27 with volume that hits near or above 795,100 shares. If that move gets underway soon, then BRKR will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $20.45 or its 200-day moving average at $21.50. Any high-volume move above those levels will then give BRKR a chance to tag $23.

Must Read: 5 Breakout Stocks Under $10 Set to Soar

Asbury Automotive Group

Asbury Automotive Group (ABG) operates as an automotive retailer in the U.S. This stock closed up 5% at $68.75 in Friday's trading session.

Friday's Volume: 646,000

Three-Month Average Volume: 267,866

Volume % Change: 136%

From a technical perspective, ABG ripped higher here back above its 50-day moving average of $68.24 with above-average volume. Market players should now look for a continuation move to the upside in the short-term if ABG manages to take out Friday's intraday high of $68.87 and then above more near-term overhead resistance at $70 with high volume.

Traders should now look for long-biased trades in ABG as long as it's trending above Friday's intraday low of $65.52 or above more key near-term support at $63.04 and then once it sustains a move or close above $68.87 to $70 with volume that's near or above 267,866 shares. If that move kicks off soon, then ABG will set up to re-test or possibly take out its next major overhead resistance levels at $72.96 to its 52-week high at $73.35. Any high-volume move above $73.35 will then give ABG a chance to tag $75 to $80.

Must Read: How to Trade the Market's Most-Active Stocks

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>5 Dividend Stocks About to Hike Payments to Shareholders



>>3 Big Stocks on Traders' Radars



>>Buy These 5 Momentum Movers to Stomp the S&P

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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


Monday, October 6, 2014

Delamaide: Mortgage reform roils Washington

WASHINGTON — The debate over the future of housing finance in this country is making for strange bedfellows.

At stake in the debate over the future of the two government-controlled entities that back most mortgages today — Fannie Mae and Freddie Mac — is the cherished 30-year fixed-rate mortgage and other features of a housing market that functioned remarkably well for decades until speculative excesses led to a crash and a prolonged economic crisis.

The conservative Heritage Foundation, now headed by former Sen. Jim DeMint of Tea Party fame, came out last week against a new bipartisan Senate bill that would wind down and replace Fannie and Freddie with a complex mix of private lending and government guarantees.

One of Heritage's main complaints about the bill from Sens. Tim Johnson, D-S.D., and Mike Crapo, R-Idaho, is that it would create yet another financial regulator with ill-defined but sweeping powers to regulate mortgages, adding to the half dozen agencies already overseeing housing finance.

Amen to that, one is tempted to say.

Heritage sums up its objection to the Johnson-Crapo bill and similar legislation proposed last year by Sens. Mark Warner, D-Va., and Bob Corker, R-Tenn.: "The Senate bills would not help people to buy homes; they would only protect investors and special interests at taxpayers' expense."

The critique from this conservative bastion is remarkably similar to an earlier complaint about the Warner-Corker bill from ultraliberal economist Robert Kuttner in somewhat more colorful language: "If something like the 'bipartisan' Senate bill passes," Kuttner wrote last summer in American Prospect, "private lenders will cover their own fannies thanks to the new federal guarantee, but will demand higher interest rates from borrowers."

Kuttner has a different solution in mind — restore the two government-sponsored enterprises (GSEs) to their original status as full-fledged public entities, not the hybrids they became when their shares were s! old to investors.

"The lesson is not that government should get out of the business of backing mortgages," Kuttner concluded. "It's that public entities should be public, and should operate in the public interest."

The debate doesn't stop there. The centrist Progressive Policy Institute, an offshoot of the Democratic Leadership Council, has also urged that Fannie and Freddie be preserved — not liquidated, but reformed.

"GSE reform is essential, but it shouldn't mean a death sentence," PPI analyst Jason Gold wrote inU.S. News and World Report last summer. "Shuttering the GSEs completely … makes little sense. The idea that you can completely dismantle a housing finance infrastructure that is the foundation of an $11 trillion market is a fantasy the likes of which is only found in Washington."

Gold, who has since moved on to McGraw-Hill Financial, predicted the effort to wind down Fannie and Freddie would result in chaos "as banks and investors try to reconfigure trillions of dollars in mortgages they have sold into secondary markets with the help of Fannie and Freddie."

Some of that chaos is already here as the private investors who still own shares in Fannie and Freddie even though it has been in government "conservatorship" since 2008 have filed several lawsuits against the government for arrogating to itself virtually the totality of the bountiful profits reaped by the two entities as the housing market rebounds.

No less a left-wing icon than Ralph Nader, in his latest guise as shareholder advocate, is fighting to retain some value in Fannie and Freddie shares, along with some well-endowed hedge funds who have bought the shares in hopes of a speculative windfall.

For the record, USA TODAY's editorial board came out this week in favor of the Johnson-Crapo scheme to create a powerful new Federal Mortgage Insurance Corp. that would both provide government guarantees on mortgages in lieu of a liquidated Fannie and Freddie and regulate the finance industry to en! sure that! borrowers of all stripes get a shot at affordable mortgages.

Though the Johnson-Crapo bill is up for a committee action this month, all of the strange bedfellows opposing the legislation acknowledge that little will be settled until after the midterm elections in November. Given the complexity of the task, it's hard to imagine that much will happen very quickly after that, either, especially with opinion so divided.

The fact is we don't need a new regulator for mortgages because there is already an agency, the Federal Housing Finance Agency, which oversees Fannie and Freddie even while they are in limbo, as well as the Federal Home Loan Banks.

While the Heritage Foundation opposes the complicated new structure and regulatory authority of Johnson-Crapo, it also wants government to get out of housing finance altogether, as proposed in some House bills, which is where it parts company with its bedfellows on the left.

But there seems to be a strong feeling in Washington that there has got to be a simpler way to right the situation than the intricate and untested provisions of these complex Senate bills.

Darrell Delamaide has reported on business and economics from New York, Paris, Berlin and Washington for Dow Jones news service, Barron's, Institutional Investor and Bloomberg News service, among others. He is the author of four books, including the financial thriller Gold.

Saturday, October 4, 2014

10 Stocks With The Highest Share Buyback Volume In 2014

I'm a big fan of dividend growth but I also like stocks that buy back own shares. By reducing its own outstanding shares, earnings per share could get a boot.

It's the highest shareholder friendly activity that a company can make but also very sensitive because buybacks will shut down ealier than dividend growth.

Many companies from the S&P 500 pay good dividends and buy on a regular basis shares in the same amount. If you have a stable business model, you can easily do both without hurting your operational business.

Recently, the buyback numbers from the S&P were released and some financial research firms jumped on that data to create researches. I have read them and I want to share the best buyback companies with you here today.

Most of the stocks with the highest buyback volume in Q2 outperformed the market. These are the companies with the strongest buyback programs:

10 Top Buyback stocks for Q2/2014...

These are the key-notes from the publishing:

Quarterly Buybacks Declined Year-over-Year Q1 Buyback Leaders Take a Breather Consumer Discretionary Sector Increases Buybacks 35% Buybacks Relative to Free Cash Flow Hit 2008 Levels

You also may like: 6 Dividend Growth And Share Buyback Stocks Of The Week

These stocks have the strongest buybacks year-to-date:

#1 Pfizer (NYSE:PFE) has a market capitalization of $188.77 billion. The company employs 77,700 people, generates revenue of $51,584.00 million and has a net income of $11,410.00 million. Pfizer's earnings before interest, taxes, depreciation and amortization (EBITDA) a