Monday, December 30, 2013

Challenging Tesla: The Last Non-Electric Rolls-Royce

NEW YORK (TheStreet) --I recently drove the Rolls-Royce Wraith, which is the BMW-owned luxury brand's all-new coupe, with a base price of $285,000. I believe this to be Rolls-Royce's last non-electric car, marking the end of a century-old era of making gasoline-only cars.

Rolls-Royce was purchased by BMW in 1999 and delivered its all-new car, the Phantom four-door sedan, in January 2003. Since then, it has added a variety of new models as well as updated the Phantom a year ago.

Rolls-Royce is approaching 4,000 cars per year, with prices starting under $300,000 but typically approaching $500,000. A large percentage of the cars are "bespoke" -- or customized, with all sorts of leather, paint and other special one-off jobs. These are high-margin options.

You see, once you go much above $100,000 for a car, such things as the basic body, engine and so forth, doesn't get much better. There are diminishing returns. So how do you justify prices in the $300,000-to-$500,000 range? Rolls-Royce has figured out that it's exclusivity and individuality that can sustain such high prices. Ultra-luxury buyers are eccentric and strong-willed. They are willing to pay a premium for very precise details. They basically want to design their own car. Rolls-Royce gives them that option, and every Rolls is hand-built. So what about this all-new coupe, the Wraith? It just entered production in September, and it marks a new styling for Rolls-Royce. The back of the car looks like a hatchback. The doors are giant suicide-doors ("coach doors") and they close with a button by the A-pillar if you can't reach the handle. Getting into the rear seat is almost as hard as in any coupe, but once you get in there, you actually have good room for two large adults. I'm 6 feet tall and I fit just fine when I got into the rear seat. Unlike so many other cars these days, there is sufficient headroom. Foot and knee room is also slightly more than adequate. The armrests on both sides are outstanding, because they sit high, so as to actually provide support. In this coupe, you actually enjoy riding in the back seat. Take note, Cadillac!

The interior showcases two pieces speaking to the sheer luxury of a Rolls-Royce: 1. The doors contain the biggest single piece of wood in any car. The grain is tilted 55 degrees forward to match ... something. It's an amazing piece of woodwork. 2. The ceiling in my test car had the optional "sky" headliner. It's a leather roof, but with 1,340 (yes, that's not a typo) small fiber-optic edges providing light, representing the stars. Basically, you're looking at a fake sky. This can also be customized to match the stars the way they looked on any given day in history. All of this is hand-made, with each fiber-optic light angled just the right way.

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So how does it drive?

The engine is a 6.6 liter V12 with twin turbos, yielding 624 horses and almost as much torque. Obviously, the power here is fantastic as far as an internal combustion engine is concerned.

However, once you have driven an electric car, any regular gasoline car will feel like an ancient tractor in comparison. I just can't get over the fact that even a basic $35,000 Chevrolet Volt -- let alone a Tesla Model S -- easily beats the Rolls-Royce in the smoothness department. When you floor the accelerator in the Rolls, you wait almost a second, then the engine roars and the transmission downshifts. This is just so inferior to an electric car, which has no delay and a perfectly linear and silent acceleration after that. The infotainment and related gadgetry is a mixed bag. The Wraith has the best heads-up display I have seen, but then it's mostly downhill from there. The menu system for picking audio sources and related functionality is as big of a mess as in any Mercedes, BMW, Ford (F), etc. One really wonders who comes up with this stuff. Coming from a Tesla Model S, it's clear that Tesla (TSLA) is 30 years ahead of the industry in terms of in-car infotainment. Whether Rolls-Royce or Mercedes, these people had better wake up and shape up quickly, because they are so far behind.

For my test drive, the on-board navigation had been pre-programmed with a 70-mile route. In short, the navigation didn't work. It sent me into some random neighborhoods near Phoenix, which is not what was intended. I pulled out my $399 Android smartphone and solved the problem instantly with Google (GOOG) Maps. So much for embedded automotive technology. I would hate to see a billionaire lost in a seedy neighborhood -- sort of a like a modern-day version of the opening scene in "Pretty Woman."

Now to my bottom-line realization as I drove around in this newest and extremely beautiful -- inside and out -- Rolls-Royce coupe: This must be the last non-electric Rolls-Royce.

Clearly a Tesla Model S -- or a Cadillac ELR or a Chevrolet Volt -- are very different cars than a Rolls-Royce. Realistically, very few people cross-shop. But some do, to some extent. A person who buys a Rolls-Royce at least considers a Tesla, for example. People are curious about new experiences.

A Tesla or Cadillac ELR is obviously no match for the Rolls-Royce in terms of leather, wood and overall exclusivity -- 4,000 cars a year, broken down into several body styles. That said, the sheer driving experience of a gasoline car, like the Wraith, doesn't match a Tesla, Volt or ELR. It's not as silent, smooth or responsive. You just can't beat an electric motor, no matter a 624 horsepower 6.6 liter V12. BMW owns Rolls-Royce and it knows this. For this reason, I'm betting that this is the last non-electric Rolls-Royce. So what kind of electric car will Rolls-Royce build in the future? Will it be a pure electric, or something of a hybrid? My money is on the first plug-in Rolls-Royce being a hybrid, of which there are different architectural kinds. BMW i3 and BMW i8 are two such variants. Electric motors also would make 4-wheel drive a natural for Rolls-Royce. In an electric 4x4, there's no need for a transmission tunnel, important for rear seat room and comfort.

I think we can expect to see Rolls-Royce make its future models with two large electric motors -- one front and one rear. Then add a gasoline engine to provide for backup generator power. This would likely be 3.0 liter V6, or basically the BMW i8 multiplied by two.

The battery would likely be at least 16 kWh, and the range would be at least 30 miles, possibly as much as 50 miles. Then the generator would kick in. Basically, an architecture somewhat similar to a Chevrolet Volt (Cadillac ELR) but with 4-wheel drive and with most drivetrain components sized up by two times or more.

Keep in mind that BMW, which owns Rolls-Royce, hired the key program manager from General Motors (GM), who was in charge of developing the Chevrolet Volt 2007-2010. His name is Frank Weber and he has been working for BMW and Rolls-Royce since April 2011. I expect to see a plug-in electric Rolls-Royce by 2018 that reflects this Chevrolet Volt heritage. The BMW i3 has already entered production, and the BMW i8 enters production no later than June 2014.

Longer term, I anticipate an all-electric Rolls-Royce. It would need to beat Tesla by offering a range of at least 300 miles, preferably 400 miles. Most likely, within the next five years, probably in 2018, Rolls-Royce would therefore offer two basic drivetrains for its future cars in several different body styles: One 4x4 hybrid plug-in as I described above, and one pure electric 4x4. At the time of publication, the author was long F and GOOG. Rolls-Royce provided airfare and lunch in addition to the car and a full tank of gasoline to enable TheStreet.com to give you this first-drive report.

Sunday, December 29, 2013

At risk of outliving your retirement savings?

In the good old days, retirement was pretty simple. You worked 30 years. Got a pension. And put your money in bonds to make it last.

But this isn't your father's retirement. Back then, life expectancy was such that people only spent less than a decade in retirement.

Today is different. Boy, is it different!

After working for 30 years, it's not out of the question to spend another 30 years in retirement. And that, for lots of people, is the big worry.

People getting ready for retirement are worried that they won't be able to save enough to last. And people already in retirement worry they will outlive their nest eggs.

RETIREMENT LIVING: : 7 mistakes to avoid in retirement planning

In a poll by BlackRock more than half of those surveyed were worried about outliving their savings.

"People are living longer than ever before, dramatically altering the financial challenges in retirement," said Rob Kapito, BlackRock president. "Increased longevity is a blessing, but it's an expensive one, because that translates into the need for a bigger retirement nest egg and access to secure retirement-long income."

One key, financial planners say, is to set a budget in retirement, as you do in your working life. But it's even more important to stick to that budget in retirement since you're living on a fixed amount of money.

Stuart Ritter, vice president of T. Rowe Price Investment Services, says that early in retirement is usually hardest for people to stay on budget. They can start out with their 401(k) or pension in a lump sum, and for most, it's the most money they have ever had in their lives.

"The issue is that the money has to last for 30 years," he says. "That's why we encourage people to think of it more in terms of income (stream), and not as a balance. It can give you a more realistic understanding of what your spending can be like."

Ritter says two key things determine how long your money lasts: how much you save before you retire and how much yo! u spend after retirement.

"The other thing that substantially affects their ability to make their money last is when they actually retire — how long they work," Ritter says. "For those folks, one of the best things they can do to improve their life during retirement is delay (retirement). If working two or three years more means a higher degree of confidence for 30 years in retirement, it may be worth it."

RETHINKING RETIREMENT: Tips for older job searchers

Dana Anspach, founder of Sensible Money in Scottsdale, Ariz., and author of Control Your Retirement Destiny, says she uses three criteria to determine if a client is at risk for running out of money in retirement.

First is the length of retirement. If the client is young and healthy, they should prepare for a longer retirement. Second, she looks at if a client has the discipline to stick to a plan. "Whatever the plan is," she said, "If you can't stick with the plan, you are at greater risk." And third, she says, she looks at the ability to stay on a budget.

"You have to be able to know what you are going to spend," she says. "You can't be wildly off. You have to stick with a disciplined plan and you have to account for the potential length of your retirement, particularly if you are looking to retire early."

STRATEGIES TO MAKE THAT MONEY LAST

All the financial planners say sticking to that budget is key. But if it's clear that the nest egg will not last through retirement, there are other strategies, like working longer, taking Social Security later or even working a part-time job.

Anspach says people often forget to build key expenses into their budgets, things like dental care and eye care. And one of the biggest problems for retirees trying to stay on budget, she says: adult children, whether it's having to help them out after losing a job or getting a divorce.

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And when a c! lient is ! spending too much: "All we can do is say here are your choices," she says. "You have to get your spending down to this level or you will run out of money. If a client wants to take more money out, I can't say no. All I can do is warn them."

And as a last resort, she says, she will recommend use of a reverse mortgage or downsizing. "I prefer to not use it as part of their plan," she says. "I use it as a reserve strategy. We need some kind of plan B. Maybe it's moving in with your sister."

Ross Badger, director at Satis Asset Management in London, says retirees must make sure they scrutinize all their expenses.

"There is often a significant savings to be made," he says. "People need to look at utility companies and subscriptions. Review those. Look at payments that automatically go out — insurance premiums. Many times they haven't reviewed it. When we do a detailed review of each expenditure, it's amazing when you hear that people didn't even know that was still coming out. It's also amazing how many people don't check their bank statements."

BENEFITS: At what age should you start claiming Social Security?

Badger says people in all income groups worry about their money lasting through retirement. But what amazes him is that they have done so little to work out the numbers.

Also, he says, watch the debt. "Despite interest rates being historically low, there is a lot of encouragement to increase the level of debt, buy bigger houses, take holidays," he says. "Keep the debt level manageable. Even when you think you can afford to pay the mortgage payments or loan payment, test what it would do to your finances if interest rates were to increase or double."

And finally, there's inflation to consider. It's a big concern, and it should be, Ritter says. And that's why it's important to make sure you continue to have stocks in your portfolio in retirement, he says.

"Years ago, they could put all their money in bonds," Ritter says. "Rates were higher. People died aft! er seven ! or eight years (in retirement). Inflation didn't have much time to increase the price of things they wanted to buy. Now we tell people to plan for 30 years of inflation.

"Inflation at 3% will double the rate of everything you buy in 23 years," he says. "To buy that same dinner out or buy that same cruise ticket or airline ticket. If it takes $40,000 for your lifestyle this year, it will take $80,000 (in 23 years). If your portfolio hasn't been growing, you won't have enough money in there to take out twice as much."

Here's the key to gaining confidence in your long-term savings: "Adjust as you go along," Ritter says. "Expect to have to adjust. Start with a plan. Start with guidance to know where you are going. That gives people confidence to enjoy retirement and confidence that they will have a plan in place to help manage. And they can concentrate on more fun things."

Thursday, December 26, 2013

The Most Important Number to Watch This Week

The esoteric - yet highly accurate - Hindenburg Omen we looked at Friday may suggest the probability of a market crash. But the number I'm watching this week could cause one.

As a standalone figure, of course, the yield on 10-year Treasuries is small. But the amount of money it impacts worldwide is flat-out staggering.

Out of the estimated $1.5 quadrillion dollars' worth of derivatives on the planet right now, roughly $500 trillion is specifically related to interest rates.

So you can see why the 10-year gets so much attention. But right now, I'm watching it even more carefully... for one important reason.

When the Hindenburg was sounding the alarm last week, 10-year Treasury yields spiked at the same time, up to 2.8210% before relaxing a bit in early trading last Friday as of press time. That suggests to me the Fed is losing control over interest rates.

No doubt this is a frightening scenario, which is why it's important to remember...

There's plenty you can do about this now.

First, here's why higher rates could have such a wide impact...

The 5 Side Effects of "No Control"

Many investors believe the Fed controls interest rates. That's not true - they merely influence them.

As I have long written here in Money Morning, it's the traders who have a death grip on our financial markets.

And if interest rates rise much further, the support the Fed is counting on in the bond markets may not be there. In fact, it may be running the opposite direction.

And here's why that could trigger a selloff:

Foreign custody holdings of U.S. Treasuries continue to decline, which implies that our trading partners don't trust our repayment ability. So they're moving on to other assets.
Money managers are seeing extremely high levels of redemption requests and withdrawals from bonds. PIMCO, for example, experienced a $7.5 billion hit last month as money headed for the exits. The presumption is that the money is rotating into stocks, but the data suggests a solid portion is simply going back under the mattress. Somebody has to make up the gap; the only one big enough is the Fed. But if $85 billion a month isn't good enough, you've got to wonder how much is. Bernanke's replacement will have his or her hands full and the stakes couldn't be higher.
Loan volumes have fallen sharply as America continues to deleverage. International data suggests the same is true, generally speaking, throughout Europe and in Asia as well. So banks don't need to buy Treasuries as a means of supporting profits and corresponding balance sheet liabilities. Combine that with huge real estate mark-to-market losses that have yet to be taken, and there's a hole the size of Bernanke's printing press to dam... or damn, depending on your perspective.
Institutional managers - read pension fund administrators, foreign banks, and ETFs - who would have normally been big buyers, are paring back because they don't want the exposure that comes with 10-year paper or longer-term assets in a rising rate environment.
The risk the Fed thinks it's insuring here in the United States is really global. Team Bernanke and his minions have already socialized risk, so there is literally nowhere to run in the halls of big government.

Yikes!

So now what?

For one thing, people are going to come to understand what we at Money Morning have known all along: Money printing is not the solution. It's THE problem.

I don't care what Bernanke and his central banking boffins say, you cannot print money forever, nor can you expect people to tolerate doing so into perpetuity. Eventually you have to pay back what you owe... or default.

Bailouts never solve the problem. At the end of the day, they merely push them off.

As I see it, there are two possible outcomes: a) a catastrophic default or b) a controlled default. And I'm not alone in my thinking.

Legendary investor Jim Rogers has been very clear from the beginning that this will end badly. Mark Mobius believes default has to happen, especially in Europe, where he's noted that governments will "stretch out payments so that at the end of the day, as economies recover, they are gradually able to pay off these debts."

So how do you protect your portfolio?

Four Ways to Sleep at Night The most obvious thing to do is take profits ahead of time as a safeguard to the current turbulence becoming something worse. If you're up big, consider converting gains of 100% or more into "free trades" like Money Map Report subscribers have done throughout this financial crisis. That way, you bank the gains and are effectively playing with house money, having paid for your initial investment.
That's followed closely by purchasing insurance. I'm a big fan of inverse ETFs and put options because they allow investors to spend a comparatively small amount of money while potentially protecting broad swathes of their portfolio. Futures, because of their leverage, can be even more effective, but they are clearly not for everybody.
While you're at it, don't leave out trailing stops. These are simple protective orders that ensure you sell specific holdings at some dollar or percentage level below where an investment is trading now. Doing so removes emotion from the equation in the heat of battle while making certain that you capture profits and protect against small losses before they become catastrophic ones.
And finally, go shopping. You heard me... Get ready to buy, especially when you can get something the world needs at a discount. Energy, certain kinds of tech and inverse bond funds that are a bet on rising rates look especially appealing to me at the moment.

The markets show beyond any shadow of a doubt that the vast majority of investors do exactly the right thing at precisely the wrong time. That's why they're always buying when they should be selling and selling when they should be buying. Barron's research suggests that 85% of all buy/sell decisions are incorrect.

If you know that, and everybody heads for the exits at once, this is about as close to a glaring green light as you're going to get.

Admittedly, I know each of these things is hard to do. It takes nerves of steel to wade in when "everybody" knows that the worst is about to happen, or is happening. It also takes unparalleled confidence to step into the middle of something like the financial markets when everybody else is fleeing.

Yet, that's exactly what the savviest investors in the world will do.

I want you to be among them.

Wednesday, December 25, 2013

Hot Penny Stocks To Invest In Right Now

Shares of Sealed Air Corporation (SEE) hit a new 52-week high of $27.65 on Jul 12, surpassing its previous high of $27.27. The company has delivered a robust one-year return of about 84.4% and year-to-date return of 58.9%, outperforming the S&P 500.

The Elmwood Park, NJ-based specialty packaging service provider has long-term estimated earnings per share growth rate of 12.9%. Average volume of shares traded over the last three months is approximately 1913K.

What�� Driving Sealed Air Up?

Sealed Air reported first-quarter 2013 adjusted net earnings from continuing operations of 17 cents per share, up 6% from the year-ago earnings of 16 cents per share but a penny short of the Zacks Consensus Estimate.

Although earnings missed estimates, Sealed Air declared an improved outlook for full year 2013. The company expects adjusted earnings in the range of $1.10 to $1.20 per share on net sales of $7.7��7.9 billion. Furthermore, adjusted EBITDA is expected in the range of $1.01��1.03 billion.

Hot Penny Stocks To Invest In Right Now: NRG Energy Inc.(NRG)

NRG Energy, Inc., together with its subsidiaries, operates as a wholesale power generation company. The company engages in the ownership, development, construction, and operation of power generation facilities. It also involves in the transacting in and trading of fuel and transportation services; the trading of energy, capacity, and related products in the United States and internationally; and the supply of electricity, energy services, and cleaner energy and carbon offset products to retail electricity customers in deregulated markets. The company operates natural gas- fired, coal- fired, oil-fired, nuclear, solar, and wind power plants. As of December 31, 2010, it had power generation portfolio of 193 operating fossil fuel and nuclear generation units with an aggregate generation capacity of approximately 24,570 megawatt (MW), as well as ownership interests in renewable facilities with an aggregate generation capacity of 470 MW. The company portfolio also includes appr oximately 24,035 MW generation capacity in the United States, and 1,005 MW generation capacity in Australia and Germany. In addition, it has a district energy business with steam and chilled water capacity of approximately 1,140 megawatts thermal equivalent. NRG Energy, Inc. was founded in 1989 and is headquartered in Princeton, New Jersey.

Advisors' Opinion:
  • [By Rich Duprey]

    The country's largest independent competitive power generator, NRG Energy (NYSE: NRG  ) , announced today it had commenced with the IPO of its wholly owned subsidiary, NRG Yield. The purpose of the offering is to create a unit to acquire cogeneration assets.

Hot Penny Stocks To Invest In Right Now: Tutor Perini Corporation(TPC)

Tutor Perini Corporation, together with its subsidiaries, provides diversified general contracting, construction management, and design-build services to private clients and public agencies worldwide. It operates in three segments: Civil, Building, and Management Services. The Civil segment involves in public works construction, and the repair, replacement, and reconstruction of infrastructure. This segment?s civil contracting services include construction and rehabilitation of highways, bridges, mass transit systems, and wastewater treatment facilities. The Building segment provides services to various specialized building markets for private and public works clients, such as the hospitality and gaming, transportation, healthcare, municipal offices, sports and entertainment, education, correctional facilities, biotech, pharmaceutical, industrial and high-tech markets, electrical and mechanical, plumbing, and HVAC services. The Management Services Segment offers diversifie d construction and design-build services to the United States military and government agencies, surety companies, and multi-national corporations in the United States and internationally. This segment also provides rapid response and contract completion services; and management or general contracting services to fulfill the contractual and financial obligations of the surety on notification from the surety of a contractor bond default. The company was founded in 1894 and is headquartered in Sylmar, California.

Advisors' Opinion:
  • [By Travis Hoium]

    What: Shares of construction company Tutor Perini (NYSE: TPC  ) jumped 12% today after the company released earnings.

    So what: First quarter revenue was up 9%, to $992.9 million, and earnings nearly quadrupled, to $0.31 per share. Wall Street expected revenue to be $983.2 million and earnings of just $0.24, so investors were pleasantly surprised by the results.�

  • [By Rich Smith]

    On Wednesday, civil engineering firm Tutor Perini Corp. (NYSE: TPC  ) said the California High-Speed Rail Authority has identified its $985 million bid to design the initial Madera-to-Fresno segment�of California's high-speed railway as the "apparent best value" of all bids received.

  • [By Rich Smith]

    Following up on the news that it's the likely winner of a $985 million contract to design the Madera-to-Fresno segment�of California's new high-speed railway, civil engineering firm Tutor Perini� (NYSE: TPC  ) announced Tuesday that it's scored a second major contract win.

Top 10 Blue Chip Stocks To Buy Right Now: BGC Partners Inc.(BGCP)

BGC Partners, Inc. operates as a financial intermediary to the financial markets specializing in the brokering of various financial products. It provides electronic marketplaces, including government bond markets, spot foreign exchange, foreign exchange options, corporate bonds, and credit default swaps in various financial markets through its eSpeed- and BGC Trader- branded trading platform which can be accessed through its high speed data network, over the Internet, or third party communication networks. The company?s brokerage services include trade execution, broker-dealer services, clearing, processing, information, and other back office services, as well as cover various products, including fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commodities, futures, and structured products. It also provides financial technology solutions, market data, and analytics related to financial instruments and markets . In addition, the company offers customized screen-based market solutions, which enables its clients to develop a marketplace, trade with their customers, issue debt, trade odd lots, access program trading interfaces, and access its network and intellectual property. Further, it licenses intellectual property portfolio and software solutions to various financial markets participants; and provides software development, software maintenance, customer support, infrastructure, and internal technology services to support electronic trading platforms. The company serves banks, broker-dealers, investment banks, trading firms, hedge funds, governments, investment firms, professional trading firms, futures commission merchants, and other professional market participants and financial institutions in the United States, the United Kingdom, France, Asia, Europe, Africa, the Middle East, and other Americas. The company was founded in 1999 and is based in New York, New York.

Advisors' Opinion:
  • [By Selena Maranjian]

    Finally, Tudor Investment's biggest closed positions included Apple�and the iShares MSCI Emerging Market Index Fund ETF. Other closed positions of interest include Frontier Communications (NASDAQ: FTR  ) and BGC Partners (NASDAQ: BGCP  ) . Frontier, recently yielding more than 9%, is a rural telecom specialist. It's weighed down with considerable debt, and is shifting its business focus, favoring business customers more. It's been posting declining revenue lately, though, and its credit rating took a hit in recent months, also. Some worry that its acquisition of landline business from Verizon�may not be as lucrative as expected, and fear a dividend cut.

Hot Penny Stocks To Invest In Right Now: Coffee Holding Co. Inc.(JVA)

Coffee Holding Co., Inc. engages in manufacturing, roasting, packaging, marketing, and distributing roasted and blended coffees in the United States and Canada. The company offers three categories of products: wholesale green coffee, private label coffee, and branded coffee. The wholesale green coffee product category consists of unroasted raw beans imported from worldwide that are sold to roasters and coffee shop operators in approximately 90 varieties. The private label coffee product category includes coffee roasted, blended, packaged, and sold under the specifications and names of others. As of October 31, 2010, the company supplied private label coffee under approximately 34 different labels to wholesalers and retailers in cans, brick packages, and instants in various sizes. The branded coffee product category comprises coffee roasted and blended to the company's own specifications and offered under its seven brand names in various segments of the market. The company also offers other products, including trial-sized mini-brick coffee packages; specialty instant coffees; instant cappuccinos and hot chocolates; and tea line products. Its coffee brands include Cafe Caribe, S&W, Cafe Supremo, Don Manuel, Fifth Avenue, Via Roma, IL CLASSICO, and Entenmann. Coffee Holding Co., Inc. markets its private label and wholesale coffee through trade shows, industry publications, face-to-face contacts, internal sales force, and non-exclusive independent food and beverage sales brokers, as well as through its Web site, coffeeholding.com. The company was founded in 1971 and is headquartered in Staten Island, New York.

Hot Penny Stocks To Invest In Right Now: Westinghouse Solar Inc.(WEST)

Westinghouse Solar, Inc. engages in the design, manufacture, integration, and installation of solar power systems under the Westinghouse name. It offers its solar power systems for residential and commercial customers. The company also designs and distributes solar panels with integrated micro inverters (called as AC solar panels). The company sells its AC solar panels to solar installers, trade workers, and do-it-yourself customers through distribution partnerships, dealer network, and retail outlets. It has a strategic partnership with Real Goods Solar, whereby Real Goods Solar operates as an authorized dealer for westinghouse solar power systems for sale to its customers in California and Colorado markets. The company was formerly known as Akeena Solar, Inc. and changed its name to Westinghouse Solar, Inc. on Apr 14, 2011. Westinghouse Solar, Inc. was founded in 2001 and is headquartered in Campbell, California.

Advisors' Opinion:
  • [By Bryan Murphy]

    My enthusiasm regarding Real Goods Solar, Inc. (NASDAQ:RSOL) and Westinghouse Solar Inc. (OTCMKTS:WEST) hasn't exactly been a veiled secret. Though I've favored one over the other at various times since the entire solar panel industry went back into high gear in the middle of the second quarter, I've been a fan of both RSOL as well as WEST for a while. The trick has been finding the right entry spot for both of these volatile stocks.

  • [By John Udovich]

    Small cap solar stock Andalay Solar Inc (OTCMKTS: WEST) has largely cratered for investors�verses solar stock peers Real Goods Solar, Inc (NASDAQ: RSOL) and SolarCity Corp (NASDAQ: SCTY), but is the company finally turning itself around after a failed deal to be acquired?

  • [By Bryan Murphy]

    It's fun to be right, but that doesn't always mean it's fruitful. I was right about Westinghouse Solar Inc. (OTCMKTS:WEST) being a breakout candidate when I explained the chart's most likely technical outcome. Though it took a little more than a week for WEST to actually perform as expected, it got there. Problem: It got there in spades, solving one problem but creating another. Though I'm still bullish on this solar play, we need a new roadmap.

Hot Penny Stocks To Invest In Right Now: Smith Micro Software Inc.(SMSI)

Smith Micro Software, Inc. designs, develops, and markets software products and services primarily for the mobile computing and communications industries worldwide. The company operates in two segments, Wireless, and Productivity and Graphics segments. The Wireless segment develops mobile connectivity, mobile information management, and mobile security solutions, including QuickLink Mobile that provides mobile users to connect a notebook or other wireless device to wireless wide area networks (WWANs) and wireless local area networks (WLANs) or Wi-Fi hotspots; QuickLink Mobility suite, which allows connectivity for the user operating on WWANs, corporate local area networks (LANs), and Wi-Fi networks; and QuickLink Media for managing the media on the mobile devices. It also provides SendStuffNow, which secures cloud-based large file delivery solution; Device Management suite that provides intelligent, automated mobile device provisioning, and configuration; and push-to-talk, visual voicemail, and mobile video solutions. The Productivity and Graphics segment develops various software products for the consumer, prosumer, and professional markets. It provides StuffIt Deluxe, a lossless compression solution for documents and media; CheckIt Diagnostics and CheckIt Netbook suite, a diagnosis and troubleshooting solution for hardware and system problems; Poser, a solution for creating 3D character art and animations; Anime Studio, an animation tool for professional and digital artists; and Manga Studio, a solution for creating manga and comic art. This segment distributes its products through online stores, and third-party wholesalers, retailers, and value-added resellers. The company serves mobile network operators, original equipment manufacturers, device manufacturers, and enterprise businesses, as well as directly to consumers. Smith Micro Software, Inc. was founded in 1982 and is headquartered in Aliso Viejo, California.

Tuesday, December 24, 2013

Will McDonald’s Continue To Surge Higher?

With shares of McDonald's (NYSE:MCD) trading around $99, is MCD an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

McDonald''s franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America, so just about every part of the world. Its restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. The products provided by McDonald's fulfill cravings at competitive prices in convenient locations worldwide. The McDonald's craze shows no signs of slowing, so the company has continued its expansion to just about every country on the globe. As consumers continue to enjoy the McDonald's products, look for it to see rising profits.

T = Technicals on the Stock Chart are Strong

McDonald's stock has witnessed a powerful surge higher in its stock over the last decade or so. The stock is now pulling-back slightly from all-time high prices so it may need some time before it gets going once again. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, McDonald's is trading around its rising key averages which signal stabilizing price action in the near-term.

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MCD

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of McDonald's options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

McDonald's Options

17.59%

70%

68%

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

Put IV Skew

Call IV Skew

July Options

Average

Average

August Options

Average

Average

As of today, there is an average demand from call and put buyers or sellers, neutral over the next two months. To summarize, investors are buying a very significant amount of call and put option contracts and are leaning neutral over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

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

2013 Q1

2012 Q4

2012 Q3

2012 Q2

Earnings Growth (Y-O-Y)

2.44%

3.83%

-1.38%

-2.22%

Revenue Growth (Y-O-Y)

0.90%

1.90%

-0.19%

0.15%

Earnings Reaction

-1.95%

0.57%

-4.45%

Hot Canadian Stocks To Buy Right Now

-2.88%

McDonald's has seen increasing earnings and revenue figures over most of the last four quarters. From these numbers, the markets have grown to expect more from McDonald's earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has McDonald's stock done relative to its peers, Yum! Brands (NYSE:YUM), Burger King (NYSE:BKW), Wendy’s (NASDAQ:WEN), and sector?

McDonald's

Yum! Brands

Burger King

Wendy’s

Sector

Year-to-Date Return

12.49%

9.53%

23.66%

27.66%

13.46%

McDonald's has been a relative performance leader, year-to-date.

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Conclusion

McDonald's is a well-recognized company that fulfills cravings and demand for quick and delicious food choices that many consumers across the globe enjoy. The stock has been steadily chugging higher but is now pulling-back a bit from all-time high prices. Over most of the last four quarters, earnings and revenue figures have been on the rise, however, investors have grown to expect a little more from the company. Relative to its peers and sector, McDonald’s has been an average performer, year-to-date. Look for McDonald’s to stabilize and OUTPERFORM.

Monday, December 23, 2013

The Best Way to Invest in Emerging Markets

Facebook Logo Twitter Logo LinkedIn Logo Google Plus Logo RSS Logo Charles Sizemore Popular Posts: How to Invest in Obamacare-Era HealthcareShould Big Tobacco Fear an E-Cigarette Snuff-Out?The Best Way to Invest in Emerging Markets Recent Posts: The Best Way to Invest in Emerging Markets Best Stocks of 2013: Daimler Leads the Pack Should Big Tobacco Fear an E-Cigarette Snuff-Out? View All Posts

There are three ways to get exposure to emerging markets, according to Barron's Shuli Ren:

Buy an emerging-market index. Buy a global materials index. Buy a basket of multinationals with heavy exposure to emerging markets.

While I certainly don’t favor all equally, it’s worth taking a glimpse into each one of these possibilities. That way, you can find the right emerging-market exposure for you:

Emerging-Market Index

I've written about the first option recently, giving my recommendation on choosing the right emerging-market ETF.

The most direct route I have found is via the EGShares Emerging Market Consumer ETF (ECON). ECON’s holdings get about 90% of their revenues from selling within their home markets and other emerging markets, which is a stark contrast to most mainstream emerging-market ETFs.

For example, the iShares MSCI Emerging Markets ETF (EEM) is comprised of companies that, while domiciled in the emerging world, get a large chunk of their revenues from exporting to the West. Think Samsung (SSNLF) and Taiwan Semiconductor (TSM). (Whether South Korea and Taiwan are "emerging markets" or "developed markets" is another debate for another day, but both countries are well represented in EEM.)

Commodities

What about Ren's second option — buying a global materials index?

I'm not the biggest fan of commodities as an asset class. There were numerous studies in the early-to-mid-2000s that showed a basket of commodities offering "equity-like" returns (such as this one) and recommending commodities.

But things have changed over the past decade; correlations between commodities have increased. As commodity mutual funds and ETFs such as the PIMCO Commodity Real Return Fund (PCRDX) and iShares S&P GSCI Commodity-Indexed Trust (GSG) have become popular, commodities that once traded largely independently of each other now get lumped together and bought and sold as a group. Also, the financialization of commodities has caused their correlation to stocks to rise as well.

So, the touted diversification benefits are now mostly moot.

Furthermore, most investors have little understanding of how commodities investing works. Outside of a few ETFs that hold the physical commodity — such as the SPDR Gold Trust (GLD) — most funds and ETFs use commodities futures. And the price of the underlying spot commodity is only one return driver. You also have to take into consideration the roll yield (or the return you from buying a futures contract and having its price converge to the spot price) and the return from the collateral (which is usually Treasury securities).

Well, the collateral returns — which were significant in decades past — have been close to zero in the age of quantitative easing. And due in no small part to excessive interest from new retail investors, many commodities futures have been trading in contango (i.e. have a negative roll yield). This means that futures investors actually lose money every month relative to the price of the underlying commodity.

Why does this matter? Gorton and Rouwenhorst wrote a paper that compared spot commodity returns to futures returns to see how commodities stack up as an asset class. Their "investable" futures portfolio had annual returns of 10.31% from 1959 to 2004. Yet the spot return was only 3.47% … which was actually lower than the 4.15% in inflation during this period.

That means two-thirds of commodities’ returns were actually from the roll yield and the collateral … neither of which is a source of return in today's market.

Multinationals

This brings us to multinationals. This is my preferred way to invest in emerging markets for most clients because, if done right, it is the best of all possible worlds. You can get emerging-market growth from companies with Western management that are subject to higher standards of governance and regulation.

I call the strategy "Emerging Markets Lite" or "Emerging Markets though the Back Door." But whatever you want to call it, it's a great way to invest the growth portion of your portfolio.

By and large, you're going to get a better selection of Emerging Markets Lite stocks in Europe. Want a few examples? How about consumer products and food giants Unilever (UL) and Nestle (NSRGY)? Both are stable performers with long histories of paying and raising their dividends. And both have monster presences in emerging markets. Unilever gets nearly 60% of its revenues from emerging markets, and while that has hurt the company this past quarter, it ensures that it has a bright future. Nestle gets more than 40% of its revenues from emerging markets.

Exposure to emerging markets is a double-edged sword. You benefit from the growth, but you also get whacked by the occasional currency crisis and by the occasional bout of political instability. Just consider it a cost of doing business.

The rise of the emerging-market consumer is a durable investment theme, and any macro shocks that cause Emerging Market Lite stocks to take a short-term tumble should be viewed as a buying opportunity.

Charles Lewis Sizemore, CFA, is the editor of the Sizemore Investment Letter and the chief investment officer of investments firm Sizemore Capital Management. As of this writing, he was long ECON, UL and NSRGY. Click here to learn about his top 5 global investing trends and get your copy of "The Top 5 Million Dollar Trends of 2013."

Sunday, December 22, 2013

How the Dow's Price-Weighted Scoring Played Out Today

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) scores are calculated based on share prices, not percentage moves or market caps. It's a somewhat controversial choice that makes a big difference to the way share price swings affect the index. Here's how this choice played out on Wednesday. (All stock prices are current as of 2 p.m. EDT today.)

How the Dow Is Weighted | Infographics.

That's the basics. Click through the three views of this data and you'll notice that nothing much changes. By dint of having the largest share price by a wide margin, IBM (NYSE: IBM  ) dominates the Dow like nobody else. Big Blue accounts for more than 10% of the total Dow score. A 1% change in IBM's share price will add or remove about 16 Dow points.

The second-most impactful Dow stock, oil giant Chevron, would have to score a 1.7% gain to move the Dow's needle that far.

With a single-digit share price, aluminum producer Alcoa (NYSE: AA  ) represents just 63 Dow points overall. The stock needs a 25% spike to match the 16-point impact of a 1% move in IBM's prices. You can explore the spread between percentage moves and Dow point impacts in the next chart:

What the Weightings Mean | Create infographics.

So, for example, Hewlett-Packard notched the largest percentage gain on the Dow this afternoon -- a respectable 0.7%. That was worth just 1.3 Dow points due to HP's low share price. IBM lost 0.6%, which translates into 9.1 Dow points. That's the second-largest move (up or down) for the day, though it's only the 11th-largest percentage loss.

Biggest loser Verizon (NYSE: VZ  ) saw smaller wireless rivals moving closer to a market-changing consolidation and lost 1.5%. That's tied for the third-widest Dow point loss, at 5.8%, leapfrogged by Big Blue and Boeing (NYSE: BA  ) .

Boeing scored the rare combination of a large percentage move and triple-digit share price. Archrival Airbus just landed two massive orders for its brand new A350 jumbo jets, robbing Boeing of potential Dreamliner sales. That's good for 10.4 points of Dow damage.

This is why the Dow doesn't always reflect the health of the overall market. A significant move by IBM or any of its triple-digit share-price pals can -- and often does -- steamroll over the swings of less pricey Dow peers. To underscore the skewed nature of the oft-referenced index, let me point out that IBM holds just 5% of the Dow's total market-cap value, 3.4% of the Dow's total trailing revenue, and 5.6% of total earnings.

Big Blue may be a giant, but with a 10% index impact, it's clearly over-represented among Dow stocks.

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Saturday, December 21, 2013

Hot Energy Stocks To Buy Right Now

[ Enlarge Image ]

There�� a popular saying in the US, ��ood things come in small packages,��which is generally a statement about gifts of jewelry. My team and I find this saying can apply to the investment world, too, as we often find companies that are small in size, but which may have big long-term potential.

Emerging-market country indices are often dominated by a handful of large businesses, typically from the energy, banking, telecommunications, heavy industry and mining sectors. Political or global macroeconomic factors often influence such businesses more than their local economies. Our team doesn�� base its decisions on benchmarks��e take a bottom-up approach to investing. As such, we often find attractive opportunities in individual smaller and mid-sized companies, which tend to be found in more entrepreneurial sectors such as consumer discretionary and light industrials. Many of these companies are more domestically oriented than their larger counterparts, and thus can be better aligned with the factors driving economic growth in the individual country or market in which they operate.

Hot Energy Stocks To Buy Right Now: Cameron International Corp (CAM)

Cameron International Corporation (Cameron), incorporated on November 10, 1994, provides flow equipment products, systems and services to worldwide oil, gas and process industries. Cameron operates in three business segments: Drilling and Production Systems (DPS), Valves & Measurement (V&M) and Process & Compression Systems (PCS). The DPS segment includes businesses, which provides systems and equipment used to control pressures and direct flows of oil and gas wells. The V&M segment includes businesses, which provides valves and measurement systems used to control, direct and measure the flow of oil and gas as they are moved from individual wellheads through flow lines, gathering lines and transmission systems to refineries, petrochemical plants and industrial centers for processing. The PCS segment includes businesses, which provides standard and custom-engineered process packages for separation and treatment of impurities within oil and gas and compression equipment and aftermarket parts and services to the oil, gas and process industries. During the year ended December 31, 2011, it acquired LeTourneau Technologies, Inc. (LeTourneau) from Joy Global Inc. During 2011, it acquired Vescon Equipamentos Industrias Ltda. During 2011, it acquired 51% interest in Newmans Valves. In September 2012, TTS Group ASA sold its drilling equipment business to the Company. Effective August 5, 2013, Cameron International Corp acquired a 75% interest in Douglas Chero SpA, from Consilium SGR SpA.

Drilling & Production Systems Segment

Cameron�� products are employed in a range of operating environments, including basic onshore fields, complex onshore and offshore environments, deepwater subsea applications and ultra-high temperature geothermal operations. The products within this segment include surface and subsea production systems, blowout preventers (BOPs), drilling and production control systems, block valves, gate valves, actuators, chokes, wellheads, manifolds, drilling risers, top drive! s, mud pumps, other rig products and aftermarket parts and services. In addition, the DPS segment designs and manufactures structural components for land and offshore drilling rigs. The segment�� businesses also manufacture elastomers, which are used in pressure and flow control equipment and other petroleum industry applications, as well as in the petroleum, petrochemical, rubber molding and plastics industries. The businesses within this segment market their products directly to end-users through a worldwide network of sales and marketing employees, supported by agents in some international locations. Customers include oil and gas majors, national oil companies, independent producers, engineering and construction companies, drilling contractors, rental companies and geothermal energy producers. The businesses included in this segment are Drilling Systems, Surface Systems, Subsea Systems and Flow Control.

Drilling Systems is a global supplier of integrated drilling systems for onshore and offshore applications. Drilling equipment designed and manufactured includes ram and annular BOPs, control systems, drilling risers, drilling valves, choke and kill manifolds, diverter systems, top drives, draw works, mud pumps, other rig products and aftermarket parts and services. The products are marketed under the Cameron, Guiberson, H&H CUSTOM, H&H, Melco, LeTourneau, Lewco, OEM and Townsend brand names. Surface Systems is a global market in supplying surface production equipment, from conventional to high-pressure, high temperature (HPHT) wellheads, production systems and controls, block valves, gate valves, mudline systems, dry completion systems and aftermarket parts and services. The products are marketed under the Cameron, Camrod, IC, McEvoy, Precision, SBS, Tundra, Willis and WKM brand names. Cameron, which has a global base of installed equipment and an aftermarket presence in hydrocarbon-producing region worldwide, is the provider of surface production equipment. Surface Systems added new s! ales and ! aftermarket facilities in the Marcellus, Eagle Ford and Haynesville shale regions.

Subsea Systems is a provider of subsea wellheads, production systems and controls, manifolds and aftermarket parts and services to customers worldwide, from basic subsea tree orders to integrated solutions, as well as installation and aftermarket support. These products are marketed under the Cameron, Mars, McEvoy and Willis brand names. Flow Control provides chokes, actuators, gears, valve accessories and automation solutions to other Cameron businesses, as well as to other industry manufacturers and directly to end users under such brand names as Cameron, Dynatorque, Ledeen, Maxtorque, Test and Willis. Flow Control has expanded its subsea chemical injection metering valve (CIMV) product line, introducing a high-flow CIMV.

Valves & Measurement Segment

Cameron�� products include gate valves, ball valves, butterfly valves, Orbit valves, double block & bleed valves, plug valves, globe valves, check valves, actuators, chokes and aftermarket parts and services, as well as measurement products such as totalizers, turbine meters, flow computers, chart recorders, ultrasonic flow meters and sampling systems. This equipment and the related services are marketed through a worldwide network of combined sales and marketing employees, as well as distributors and agents in selected international locations. Customers include oil and gas majors, independent producers, engineering and construction companies, pipeline operators, drilling contractors and major chemical, petrochemical and refining companies. The businesses included in this segment are Distributed Valves, Engineered Valves, Process Valves, Measurement Systems and Aftermarket Services.

Distributed Valves provides a range of valves used in the exploration, production and transportation of oil and gas, with products sold through a network of wholesalers and distributors, primarily in North America and to upstream markets in A! sia-Pacif! ic and the Middle East. These valves are marketed under the brand names Cooper, Demco, Navco, Newco, Nutron, OIC, Techno, Texstream, Thornhill Craver, Wheatley and WKM. Engineered Valves provides a range of customized ball, gate and check valves serving the oil and gas production, pipeline, subsea and liquefied natural gas (LNG) markets. Products are marketed under the brand names Cameron, Entech, Grove, Ring-O, TK and Tom Wheatley.

Process Valves provides valves under the brand names of General Valve, Orbit, TBV and WKM for use in critical service applications that are often subject to extreme temperature conditions, particularly in refinery, power generation, including nuclear, chemical, petrochemical, gas processing and liquid storage terminal markets, including liquefied natural gas (LNG). Measurement Systems designs, manufactures and distributes measurement products, systems and solutions to the global oil and gas, process and power industries. The Company�� main product brand names include Barton, Caldon, Clif Mock, Jiskoot, Linco, Nuflo and PAAI. Aftermarket Services provides preventative maintenance, original equipment manufacturer (OEM) spare parts, repair, field service, asset management and remanufactured products for valves and actuators.

Process & Compression Systems Segment

Integrally geared centrifugal compressors are used by customers worldwide in a range of industries, including air separation, petrochemical, chemical and process gas. Products include oil and gas separation equipment, heaters, dehydration and desalting units, gas conditioning units, membrane separation systems, water processing systems, integral engine-compressors, separable reciprocating compressors, two and four-stroke cycle gas engines, turbochargers, integrally-geared centrifugal compressors, compressor systems and controls. Aftermarket services include spare parts, technical services, repairs, overhauls and upgrades. The businesses included in this segment are Process System! s, Recipr! ocating Compression and Centrifugal Compression.

The process systems businesses provide custom-engineered process packages to oil and gas majors, national oil companies, independent operators and engineering, procurement and construction companies worldwide for separation and treatment of oil, gas, water and solids. Products offered include separators, heaters, dehydration and desalting units, gas conditioning units, membrane separation systems, water processing systems and aftermarket parts and services. PCS markets its process systems products under the Cameron, Consept, Cynara, Hydromation, KCC, Metrol, Mozley, NATCO, Petreco, Porta-test, Unicel, Vortoil and Wemco brand names.

Reciprocating Compression equipment is used throughout the energy industry by gas transmission companies, compression leasing companies, oil and gas producers and independent power producers. Reciprocating Compression products and services are marketed under the Ajax, Cooper-Bessemer, CSI, Enterprise, Superior, Texcentric and TSI brand names. Ajax integral engine-compressors, which combine the engine and compressor on a single drive shaft, are used for gas re-injection and storage, as well as on smaller gathering and transmission lines. Superior-brand separable compressors are used for natural gas applications, including production, storage, withdrawal, processing and transmission, as well as petrochemical processing. These high-speed separable compressor units can be matched with either natural gas engine drivers or electric motors. Reciprocating Compression also provides global support for its products and maintains sales and service offices in key international locations. During 2011, approximately 60% of the Reciprocating Compression revenues were generated by sales of aftermarket parts and services in support of the Company�� worldwide installed base of compression equipment. Customers for Reciprocating Compression products include oil and gas majors, national oil companies, petrochemical and re! fining co! mpanies, midstream natural gas companies, independent power producers and compressed natural gas distribution companies.

Centrifugal Compression manufactures and supplies integrally geared centrifugal compressors and provides aftermarket services to customers worldwide. Centrifugal air compressors, used in manufacturing processes (plant air), are sold under the Turbo-Air. Engineered compressors are used in the process air and gas industries and are identified by the MSG. The process and plant air centrifugal compressors deliver oil-free compressed air and other gases to customers, thus preventing oil contamination of the finished products. Centrifugal Compression also provides installation and maintenance services, parts, repairs, overhauls and upgrades to its worldwide customers for plant air and process gas compressors. It also provides aftermarket service and repairs on all equipment it produces through a worldwide network of distributors, service centers and field service technicians utilizing an extensive inventory of parts marketed under the Joy brand name. Centrifugal Compression customers include oil and gas majors, national oil companies, air separation companies, independent power producers, petrochemical and refining companies, midstream natural gas companies and durable goods manufacturers.

The Company competes with Aker Solutions, Balon Corporation, Circor International, Inc., Dover Corporation, Dril-Quip, Inc., Emerson Process Management, FlowServ Corp., FMC Technologies, Inc., GE Oil & Gas Group, Stream-Flo Industries Ltd., National Oilwell Varco Inc., Zy-Tech Global Industries company, Flotek Industries, Inc., Pibiviese, Robbins & Myers Fluid Management Group, SPX Corporation�� Flow Technology Segment, Tyco International Ltd., Weatherford, Ltd., Ariel Corporation, Compressor Engineering Corporation, Demag, Dresser-Rand Company, FS-Elliott Company LLC, Endyn Energy Dynamics, Hoerbiger Group and IR Air Solutions.

Advisors' Opinion:
  • [By Dan Caplinger]

    Another issue that Varco has to face is the specter of increasing competition. Cameron International (NYSE: CAM  ) has arisen as a big player in the drilling and production systems space, with a particular emphasis on subsea applications like blowout preventers. With Cameron sporting a recent partnership with Schlumberger (NYSE: SLB  ) , the combination will have both the expertise and the financial resources to challenge Varco in that niche. More broadly, up-and-coming Forum Energy (NYSE: FET  ) has sought to emulate Varco's broad-based services menu, offering remotely operated vehicles for deepwater inspection and construction as well as pipe and cementing materials and a range of subsea systems and equipment. Forum has posted solid results in its brief history, taking steps to continue its fast growth trajectory.

  • [By Matt DiLallo]

    Cameron (NYSE: CAM  )
    By investing $6.5 million in Cameron, Soros is picking up an oilfield equipment maker that provides products and services to both the onshore and offshore markets. Where Cameron really shines is in the growing subsea systems and offshore market, which have both benefited higher oil prices. As oil prices worldwide have remained above $100 for the past few years, it has enticed oil producers to invest billions to grow production offshore. That trend shows no signs of slowing down.

Hot Energy Stocks To Buy Right Now: Atlas Resource Partners LP (ARP)

Atlas Resource Partners, L.P. (Atlas Resource Partners), incorporated on October 13, 2011, is an independent developer and producer of natural gas, crude oil and natural gas liquids (NGL), with operations in basins across the United States. The Company is a sponsor and manager of investment partnerships, in which it co-invests, to finance a portion of its natural gas and oil production activities. During the year ended December 31, 2012, its average daily net production was approximately 77.2 million cubic feet equivalent. On December 20, 2012, it completed the acquisition of DTE Gas Resources, LLC from DTE Energy Company. On September 24, 2012, the Company acquired Equal Energy, Ltd.�� (Equal) remaining 50% interest in approximately 8,500 net undeveloped acres included in the joint venture. On July 26, 2012, it completed the acquisition of Titan Operating, L.L.C. On April 30, 2012, it acquired certain oil and natural gas assets from Carrizo Oil & Gas, Inc. In April 2012, it acquired a 50% interest in approximately 14,500 net undeveloped acres in the oil and NGL area of the Mississippi Lime play in northwestern Oklahoma.

Through December 31, 2012, the Company owned production positions in the areas of the Barnett Shale and Marble Falls play in the Fort Worth Basin in northern Texas; the Appalachia basin, including the Marcellus Shale and the Utica Shale; the Mississippi Lime and Hunton plays in northwestern Oklahoma, and the Chattanooga Shale in northeastern Tennessee, the Niobrara Shale in northeastern Colorado, the New Albany Shale in southwestern Indiana and the Antrim Shale in Michigan. During 2012, the Company had ownership interests in over 525 wells in the Barnett Shale and Marble Falls play and 569.3 billion cubic feet equivalent of total proved reserves with average daily production of 31.9 million cubic feet equivalent. During 2012, the Company had ownership interests in over 10,200 wells in the Appalachian basin, including approximately 270 wells in the Marcellus Shale and 1! 12.6 billion cubic feet equivalent of total proved reserves with average daily production of 35.6 million cubic feet equivalent. During 2012, it owned 21 billion cubic feet equivalent of total proved reserves with average daily production of 1.9 million cubic feet equivalent in the Mississippi Lime and Hunton plays in northwestern Oklahoma. During 2012, the Company had average daily production of 7.8 million cubic feet equivalent in the Chattanooga Shale in northeastern Tennessee, the Niobrara Shale in northeastern Colorado, the New Albany Shale in southwestern Indiana, and the Antrim Shale in Michigan.

Advisors' Opinion:
  • [By Matt DiLallo]

    The management team at oil and gas company�Atlas Energy (NYSE: ATLS  ) has really taken Warren Buffett's advice to heart. Buffett's old adage to "be fearful when others are greedy and greedy when others are fearful" seems to be that team's approach. After selling its shale assets to Chevron at the top of the market, the company has been diligently acquiring natural gas assets at the market's low. That blueprint continues to be followed as evidenced by the recently announced acquisition of substantial natural gas assets via its master limited partnership, Atlas Resource Partners (NYSE: ARP  ) .

Best Low Price Stocks To Buy For 2014: Boardwalk Pipeline Partners LP (BWP)

Boardwalk Pipeline Partners, LP is a limited partnership company. The Company owns and operates three interstate natural gas pipeline systems including integrated storage facilities. Its business is conducted by its primary subsidiary, Boardwalk Pipelines, LP (Boardwalk Pipelines) and its subsidiaries, Gulf Crossing Pipeline Company LLC (Gulf Crossing), Gulf South Pipeline Company, LP (Gulf South) and Texas Gas Transmission, LLC (Texas Gas) (together, the operating subsidiaries), which consist of integrated natural gas pipeline and storage systems. During the year ended December 31, 2011, it formed Boardwalk Midstream, LP (Midstream), and its operating subsidiary, Boardwalk Field Services, LLC (Field Services), which is engaged in the natural gas gathering and processing business. In December 2011, Boardwalk HP Storage Company, LLC (HP Storage), a joint venture between Boardwalk Pipelines and Boardwalk Pipelines Holding Corp. (BPHC) acquired Petal Gas Storage, L.L.C. (Petal), Hattiesburg Gas Storage Company (Hattiesburg). In December 2011, it acquired a 20% equity interest in HP Storage.

The Company�� pipeline systems originate in the Gulf Coast region, Oklahoma and Arkansas and extend north and east to the midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio. It serves a mix of customers, including producers, local distribution companies (LDCs), marketers, electric power generators, direct industrial users and interstate and intrastate pipelines. The Company provides a portion of its pipeline transportation and storage services, through firm contracts, under which the Company�� customers pay monthly capacity reservation charges. Other charges are based on actual utilization of the capacity under firm contracts and contracts for interruptible services. During 2011, approximately 82% of its revenues were derived from capacity reservation charges under firm contracts; approximately 14% of its revenues were derived from charges-based on actual utilization under firm contr! acts, and approximately 4% of its revenues were derived from interruptible transportation, interruptible storage, parking and lending (PAL) and other services. Its expansion projects include South Texas Eagle Ford Expansionand Marcellus Gathering System and HP Storage.

Pipeline and Storage Systems

The Company�� operating subsidiaries own and operate approximately 14,200 miles of pipelines, directly serving customers in twelve states and indirectly serving customers throughout the northeastern and southeastern United States through numerous interconnections with unaffiliated pipelines. In 2011, its pipeline systems transported approximately 2.7 trillion cubic feet of gas. Average daily throughput on its pipeline systems during 2011 was approximately 7.3 billion cubic feet. Its natural gas storage facilities are comprised of eleven underground storage fields located in four states with aggregate working gas capacity of approximately 167.0 billion cubic feet. the Company operates the assets of HP Storage on behalf of the joint venture.

The principal sources of supply for our pipeline systems are regional supply hubs and market centers located in the Gulf Coast region, including offshore Louisiana, the Perryville, Louisiana area, the Henry Hub in Louisiana and the Carthage, Texas area. Its pipelines in the Carthage, Texas area provide access to natural gas supplies from the Bossier Sands, Barnett Shale, Haynesville Shale and other gas producing regions in eastern Texas and northern Louisiana. The Henry Hub serves as the designated delivery point for natural gas futures contracts traded on the New York Mercantile Exchange. Its pipeline systems also have access to unconventional mid-continent supplies, such as the Woodford Shale in southeastern Oklahoma and the Fayetteville Shale in Arkansas. The Company also accesses the Eagle Ford Shale in southern Texas; wellhead supplies in northern and southern Louisiana and Mississippi; and Canadian natural gas through an unaffil! iated pip! eline interconnect at Whitesville, Kentucky.

Gulf Crossing

The Company�� Gulf Crossing pipeline system originates near Sherman, Texas, and proceeds to the Perryville, Louisiana area. The market areas are in the Midwest, Northeast, Southeast and Florida through interconnections with Gulf South, Texas Gas and unaffiliated pipelines.

Gulf South

The Company�� Gulf South pipeline system is located along the Gulf Coast in the states of Texas, Louisiana, Mississippi, Alabama and Florida. The on-system markets directly served by the Gulf South system are generally located in eastern Texas, Louisiana, southern Mississippi, southern Alabama, and the Florida Panhandle. These markets include LDCs and municipalities located across the system, including New Orleans, Louisiana; Jackson, Mississippi; Mobile, Alabama; and Pensacola, Florida, and other end-users located across the system, including the Baton Rouge to New Orleans industrial corridor and Lake Charles, Louisiana. Gulf South also has indirect access to off-system markets through numerous interconnections with unaffiliated interstate and intrastate pipelines and storage facilities. These pipeline interconnections provide access to markets throughout the northeastern and southeastern United States.

Gulf South has two natural gas storage facilities. The gas storage facility located in Bistineau, Louisiana, has approximately 78 billion cubic feet of working gas storage capacity from which Gulf South offers firm and interruptible storage service, including no-notice service. Gulf South�� Jackson, Mississippi, gas storage facility has approximately five billion cubic feet of working gas storage capacity, which is used for operational purposes and is not offered for sale to the market.

Texas Gas

The Company�� Texas Gas pipeline system originates in Louisiana, East Texas and Arkansas and runs north and east through Louisiana, Arkansas, Mississippi, Tennessee, K! entucky, ! Indiana, and into Ohio, with smaller diameter lines extending into Illinois. Texas Gas directly serves LDCs, municipalities and power generators in its market area, which encompasses eight states in the South and Midwest and includes the Memphis, Tennessee; Louisville, Kentucky; Cincinnati and Dayton, Ohio, and Evansville and Indianapolis, Indiana metropolitan areas. Texas Gas also has indirect market access to the Northeast through interconnections with unaffiliated pipelines. Texas Gas owns nine natural gas storage fields, of which it owns the majority of the working and base gas. Texas Gas uses this gas to meet the operational requirements of its transportation and storage customers and the requirements of its no-notice service customers.

Field Services

In 2011, the Company formed its Field Services subsidiary and transferred to it approximately 100 miles of gathering and transmission pipeline. In 2012, the Company transferred to Field Services an additional 240 miles of pipeline and two compressor stations. Field Services is developing gathering and processing capabilities in south Texas and Pennsylvania.

Advisors' Opinion:
  • [By Aimee Duffy]

    Winners
    Given the current state of U.S. energy production, most midstream companies are winners these days. Kinder Morgan Energy Partners (NYSE: KMP  ) got things started off on the right foot, reporting in mid-April and beating expectations on revenue and EPS. Here are some highlights from around the industry:

    Buckeye Partners (NYSE: BPL  ) �trounced analyst expectations on the top and bottom lines, and recorded a distribution coverage ratio of 1.21 times payouts, allowing the partnership to boost its distribution. DCP Midstream Partners' (NYSE: DCP  ) �distributable cash flow popped 40% year over year, and the partnership completed its Eagle Ford dropdown transaction with parent company DCP Midstream, boosting its stake in the lucrative South Texas shale play. Boardwalk Energy Partners' (NYSE: BWP  ) �operating revenue and net income increased 5% and 10% year over year. More importantly, distributable cash flow popped 24%, though the partnership elected to hold the distribution flat quarter over quarter. Energy Transfer Partners (NYSE: ETP  ) �had no distribution increase either, but things are looking better than they have in a while. Production in the Eagle Ford Shale is driving growth at ETP, and the partnership is reorganizing into an operation that is stronger and more diverse than ever before.

    Very strong results here, now let's take a look at some midstream companies that didn't perform as well.

  • [By Ben Levisohn]

    The overwhelming majority of Loews can be valued as the sum of its three largest subsidiary businesses that also have publicly trading stock: CNA Financial (CNA), Diamond Offshore (DO) and Boardwalk Pipeline�(BWP). The sum of these stakes is equivalent to 97.7% of the market capitalization of Loews. For almost ��ree,��imknvestors also get ownership of Boardwalk�� B shares and general partnership, a small national hotel chain, natural gas and oil E&P HighMount and the $4B in fungible assets on Loews�� corporate balance sheet…

  • [By gurujx]

    Boardwalk Pipeline Partners LP (BWP) Reached the 3-year Low of $24.62

    The prices of Boardwalk Pipeline Partners LP (BWP) shares have declined to close to the 3-year low of $24.62, which is 29.7% off the 3-year high of $33.50.

  • [By Stone Fox Capital]

    Another major project announced back in March includes plans with Boardwalk Pipeline Partners, LP (BWP) to create the Bluegrass Pipeline. The proposed design would provide producers with 200K barrels per day of mixed NGLs take-away capacity in Ohio, West Virginia, and Pennsylvania with the possibility to increase it to 400K barrels per day. The pipeline would deliver the NGLs to new fractionation and storage facilities, which would have connectivity to pipelines along the U.S Gulf Coast. The project should be sanctioned this year with a plan of going into service in the second half of 2015. See the below slide:

Hot Energy Stocks To Buy Right Now: HRT Participacoes em Petroleo SA (HRTPY)

HRT Participacoes em Petroleo SA, formerly BN 16 Participacoes Ltda, is a Brazil-based holding company engaged in the oil and gas industry. The Company is primarily involved in the exploration and production (E&P) of oil and natural gas in Brazil and Namibia. Through its subsidiaries, it is active in the geophysical and geological research, exploration, development, production, import, export and sale of oil and natural gas, as well as in the provision of air logistics services in transporting people and equipment related to oil and gas activities in the exploratory campaign in the Solimoes Basin. As of December 31, 2011, the Company had seven subsidiaries, including Integrated Petroleum Expertise Company Servicos em Petroleo Ltda (IPEX), HRT O&G Exploracao e Producao de Petroleo Ltda, HRT Netherlands BV, HRT America Inc, HRT Africa, HRT Canada Inc and Air Amazonia Servicos Aereos Ltda.

Hot Energy Stocks To Buy Right Now: Ubiquitech Software Corp (UBQU)

Ubiquitech Software Corporation, incorporated on January 11, 2007, is focused on the proposed business encompassing two business units or divisions, including an esoteric clinical laboratory and a research and development facility attached to the esoteric clinical laboratory. Until June 2009, the Company�� business was to develop and market specialized computer software to help manage electronically stored data through the Company�� wholly owned subsidiary companies, Datamatrix Software Corporation and Enterpriseware Software Corporation.

The Company had designed and planned to develop a software application for health care businesses known as Ubiquitech Enterprise Storage Manager (UESM). UESM was designed to provide computer data storage technicians with reporting and system problem notification. As of August 31, 2009, the Company had not generated any revenues.

Hot Energy Stocks To Buy Right Now: SunPower Corp (SPWR)

SunPower Corporation, incorporated in April 1985, is a vertically integrated solar products and services company that designs, manufactures and delivers solar electric systems worldwide for residential, commercial, and utility-scale power plant customers. The Company operates in two business segments: the Utility and Power Plants (UPP) Segment and the Residential and Commercial (R&C) Segment. The UPP Segment refers to its solar products and systems business, which includes power plant project development and project sales, turn-key engineering, procurement and construction (EPC) services for power plant construction, and power plant operations and maintenance (O&M) services. UPP Segment also sells components, including huge volume of sales of solar panels and mounting systems to third parties, sometimes on a multi-year, firm commitment basis. The R&C Segment focuses on solar equipment sales into the residential and small commercial market through its third-party global dealer network, as well as direct sales and EPC and O&M services in the United States and Europe for rooftop and ground-mounted solar power systems for the new homes, commercial and public sectors. In May 2012, K Road Power Holdings, LLC (K Road) and SunPower Corp announced that K Road acquired the 25-megawatt (AC) McHenry Solar Project, which the Company designed. In January 2013, the Company MidAmerican Solar acquired the 579-megawatt Antelope Valley Solar Projects (AVSP), two co-located projects in Kern and Los Angeles Counties in Calif from SunPower.

In January 2012, the Company completed its acquisition of the wholly owned Total SA subsidiary Tenesol SA, a global solar provider. In September 2011, NRG Energy Inc. acquired 250 megawatt California Valley Solar Ranch (CVSR) project from SunPower. In June 2011, the Company introduced SunPower E20 Series Solar Panel (E20) series. The Company�� customers in its UPP Segment include investors, financial institutions, project developers, electric utilities, and independent po! wer producers in the United States, Europe, and Asia. In its R&C Segment, the Company primarily sells its products to commercial and governmental entities, production home builders, and its third-party global dealer network serving residential owners and small commercial building owners.

Solar Cells

The A-300 solar cell is a silicon solar cell with a specified power value of 3.1 watts and a conversion efficiency averaging between 20.0% and 21.5%. The Company�� A-330 solar cell delivers 3.3 watts with a conversion efficiency of up to 22.7%.

Solar Panels

The Company�� SunPower solar panel series include solutions, such as SunPower E18 Series Solar Panel (E18), SunPower E19 Series Solar Panel (E19), and SunPower E20 Series Solar Panel (E20). Available in a 72-cell configuration, the E18 series panel uses its A300 all back-contact solar cells and delivers a total panel conversion of 18.1% to 18.5%. Available in a 72, 96, and 128-cell configuration, the E19 series panel uses its A300 all back-contact solar cells and delivers total panel conversion of 19.3% to 19.7%. Available in a 96-cell configuration, the E20 series panel uses its A-330 all back-contact solar cells and delivers total panel conversion of up to 20.1%.

Inverters

The Company sells a line of SunPower branded inverters. The inverters are manufactured by third parties.

Roof Mounted Products

The roof mounted products include SunPower T-5 Solar Roof Tile System (T-5), SunPower T-10 Commercial Solar Roof Tiles (T-10), PowerGuard Roof System (PowerGuard) and SunTile Roof Integrated System (SunTile). Tilted at a 5-degree angle, the T-5 roof tile is a non-penetrating photovoltaic rooftop product that combines solar panel, frame, and mounting system. The T-5 solar roof tile systems are primarily sold through its R&C Segment.

Tilted at a 10-degree angle, the T-10 commercial solar roof tiles is a non-penetrating panel interlock system! . Dependi! ng on geographical location and local climate conditions, this can allow for the generation of up to 10% more annual energy output than traditional flat roof-mounted systems. The T-10 commercial solar roof tile is primarily sold through its R&C Segment.

PowerGuard is a non-penetrating roof-mounted solar panel that delivers electricity while insulating and protecting the roof membrane from ultraviolet rays and thermal degradation. The PowerGuard roof system is primarily sold through its R&C Segment. SunTile solar shingles are designed to replace multiple types of roof panels, including the common concrete flat, low and high profile S tile and composition shingles. The SunTile roof system is also sold through its R&C Segment.

Ground Mounted Products

The ground mounted products include SunPower T-0 Tracker (T-0) & SunPower T-20 Tracker (T-20), SunPower Oasis Power Plant (SunPower Oasis), SunPower C-7 Tracker (C-7), and Fixed Tilt and SunPower Tracker Systems for Parking Structures. The T-0 and T-20 trackers are single-axis tracking systems that automatically pivot solar panels to track the sun's movement throughout the day. This tracking feature increases the amount of sunlight that is captured and converted into energy by up to 30% over flat or fixed-tilt systems, depending on geographic location and local climate conditions. A single motor and drive mechanism can control 10 to 20 rows, or more than 200 kilo watts of solar panels. The T-0 and T-20 trackers have been installed in a range of geographical markets principally in the United States, Germany, Italy, Portugal, South Korea, and Spain. The T-0 and T-20 trackers are sold through both its UPP and R&C Segments.

The Oasis is a solar power block that scales from 1 mega watts distributed installations to central station power plants. Oasis provides a way to deploy utility-scale solar power systems, streaming the development and construction process while optimizing the use of available land. The SunPow! er Oasis ! is sold through its UPP Segment. The C-7 combines a horizontal single-axis tracker with rows of parabolic mirrors, reflecting light onto linear arrays of its solar cells. The C-7 tracker is sold through its UPP Segment. SunPower has developed designs for solar power systems for parking structures in multiple configurations. These dual-use systems typically incorporate solar panels into the roof of a carport or similar structure to deliver onsite solar power while providing shade and protection. They are suited for parking lots adjacent to facilities. Fixed Tilt and SunPower Tracker Systems for parking structures are sold through both its UPP and R&C Segments.

Other System Offerings

SunPower�� metal roof system is designed for sloped-metal roof buildings, which are used in some winery and warehouse applications. This solar power system is designed for rapid installation. It also offers other architectural products, such as day lighting with translucent solar panels.

Balance of System Components

Balance of system components are components of a solar power system other than the solar panels. It includes SunPower branded inverters, mounting structures, charge controllers, grid interconnection equipment, and other devices depending on the specific requirements of a particular system and project.

The Company competes with Canadian Solar Inc., JA Solar Holdings Co., Kyocera Corporation, Mitsubishi Corporation, Q-Cells AG, Sanyo Corporation, Sharp Corporation, SolarCity Corporation, SolarWorld AG, Sungevity, Inc., SunRun, Inc., Suntech Power Holdings Co. Ltd., Trina Solar Ltd., Yingli Green Energy Holding Co. Ltd., Abengoa Solar S.A., Acconia Energia S.A., AES Solar Energy Ltd., Chevron Energy Solutions, EDF Energy plc, First Solar Inc., NextEra Energy, Inc., OPDE Group, NRG Energy, Inc., Recurrent Energy, Sempra Energy, Skyline Solar, Inc., Solargen Energy, Inc., Solaria Corporation, SolFocus, Inc., SunEdison and Tenaska, Inc.

Advisors' Opinion:
  • [By Travis Hoium]

    Most solar going up in both states is the utility-scale variety, which makes for rapid expansion. Solar powerhouses First Solar (NASDAQ: FSLR  ) and SunPower (NASDAQ: SPWR  ) are turning large swaths of desert into power-generating assets in both states. First Solar is building the Desert Sunlight (550 MW) and Topaz Solar Farm (550 MW) in California and Agua Caliente (290 MW) �in Arizona, while SunPower is building the 250 MW California Valley Solar Ranch in California (shown below).

  • [By Travis Hoium]

    SunPower (NASDAQ: SPWR  ) reports earnings this week and, after a strong run on the market, investors are looking for continued improvement on its financial statements. Erin Miller sat down with solar analyst Travis Hoium to see what investors should be looking for.�

  • [By Tyler Crowe]

    Also, Total has shown it to be one of the more innovative thinkers compared to its other integrated major peers. It owns 66% of U.S. solar panel manufacturer SunPower (NASDAQ: SPWR  ) and is partnering with several major European airline companies to develop next-generation jet fuels. Tune in to the video conversation below where Fool.com contributors Tyler Crowe and Aimee Duffy take a look at more of Total's risky bets.�

  • [By Travis Hoium and Erin Miller]

    SunPower's (NASDAQ: SPWR  ) higher guidance has investors excited about solar stocks again, and even Chinese companies have dreams of making a profit. It's been a long road back for investors in solar stocks, but the clouds are lifting. With financial performance improving at leaders First Solar (NASDAQ: FSLR  ) and SunPower it may be time to get into the market. The Motley Fool's Erin Miller sat down with Fool.com contributor Travis Hoium to get the latest on the industry.

Friday, December 20, 2013

Time to Take a Swing on Ariad Pharmaceuticals (ARIA)

If you're looking for a riches-to-rags-back-to-riches story to trade, then Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) may well be the first and last name to consider. This biotech stock has gone from being on top of the world to the bottom of the barrel to, well, maybe starting to claw its way back toward the top of the heap as of this week. While the rebound from ARIA is still a little fuzzy, the scales seem to have finally tipped in a slightly-bullish direction.

You probably know the company, even if you can't quite recall why. Ariad Pharmaceuticals was the biopharma outfit that halted trials and sales of its cancer drug, Iclusig, in October after it appeared it caused a risk of potentially-dangerous blood clots. ARIA shares plunged from $17.14 to $5.83 in one day on the news, but ultimately fell to a low of $2.15 in the aftermath of the announcement, once traders really began to think about the impact and outlook for the company.

As is so often the case when bad news for a biotech pops up, the market may have over-reacted and assumed more than the worst-case scenario as it was handicapping the downside from Ariad.

For starters, the European Medicines Agency has maintained its approval of Iclusig for leukemia. In the meantime, the FDA has given special permission to patients who have already shown a benefit from using the Ariad Pharmaceuticals drug to continue using it... a tacit hint that the agency doesn't see a screaming risk (relatively) with Iclusig. That's not to say a reinstatement is a foregone conclusion, but it's not out of the realm of possibility.

And, bear in mind that even though Iclusig was Ariad Pharmaceuticals' flagship product, it's got another drug (AP26113, for NSCLC) in the pipeline. And, even of Ponatinib/Iclusig is indeed shown to be the cause of blood clots, that's not to say it can't be reworked as a treatment for leukemia, or any of the other illnesses it's currently in trials to treat.

With all of that being said, the biggest reason would-be investors would want to start wading in now has little to do with the company's news, and everything to do with the fact that ARIA shares are finally starting to perk up, telling us the market is starting to see that it overshot when it was selling the stock a few weeks ago.

The chart below tells the story. Shares got whacked in October, but as of today are knocking on the door of a higher high. If the stock can clear the hurdle at $5.30, that could really light a fire here. And, given how Ariad Pharmaceuticals, Inc. shares are now supported by the 20-day moving average line, and they're attacking the $5.30 on rising volume. It all says the bulls are just looking for a reason to bust out here, and that's a very encouraging sign.

5 Best Penny Stocks To Buy Right Now

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