Saturday, February 28, 2015

Hot Prefered Stocks To Buy For 2014

An adviser's full utilization of technology should enhance personal communications with clients, not supplant it, according to yesterday's InvestmentNews webcast, “The Secrets of Top Technology Performers.”

While the initial adoption of new technology is often an attempt at increasing efficiency and cost cutting, automation and a growing number of “digital touch points” can also enrich the client experience.

Rick Adkins, president and chief executive of The Arkansas Financial Group Inc., an investment advisory firm that provides fee-only, comprehensive financial planning services to physicians, said he has seen the dual utility of technology in the office firsthand.

Top Stocks To Own Right Now: Turkcell Iletisim Hizmetleri AS(TKC)

Turkcell Iletisim Hizmetleri A.S. engages in establishing and operating a global system for mobile communications network in Turkey. It provides mobile voice, and Internet services over its mobile communications network; voice services, which include wireless telephone services on a prepaid and postpaid basis; mobile Internet and 3G services; consumer services; Telco services; TV and video services; music services; infotainment services; social community and other services; and mobile financial services The company also offers Turkcell enablers and platforms; corporate (B2B); corporate telco; authentication; location based; mobile marketing; machine-to-machine communications; and international roaming services. In addition, it provides Mobile Signature, a GSM service that enables customers to sign electronic documents and transactions with a legally-accepted digital signature using GSM SIM cards; and Mobile Billboard, which enables brands to reach their targeted customers . As of December 31, 2010, the company had approximately 23.3 million prepaid subscribers and 10.1 million postpaid subscribers. It sells its products and services through its distribution network consists of distributors, Turkcell distribution centers, corporate solution centers, non exclusive dealers, Turkcell communication centers, Turkcell stores, and consumer electronic Chains, as well as points of sale for prepaid airtime, including ATMs, POS, Web, call centers, supermarkets, and kiosks. The company was founded in 1993 and is headquartered in Istanbul, Turkey. Turkcell Iletisim Hizmetleri AS is a subsidiary of Turkcell Holding A.S.

Advisors' Opinion:
  • [By Lisa Levin]

    Turkcell Iletisim Hizmetleri AS (NYSE: TKC) shares reached a new 52-week low of $12.74. Turkcell's trailing-twelve-month EPS is $1.40.

    Posted-In: 52-Week LowsNews Movers & Shakers Intraday Update Markets

Hot Prefered Stocks To Buy For 2014: CECO Environmental Corp.(CECE)

CECO Environmental Corp. provides air-pollution control technology products and services worldwide. The company offers engineered equipment, cyclones, scrubbers, dampers, diverters, regenerative thermal oxidizers, component parts, and monitoring and managing services. Its Engineered Equipment Technology and Parts Group segment provides air handling equipment and systems for filtering, cooling, heating, and capturing emissions in the metal industries; systems for corrosion protection, fugitive emissions control, evaporative cooling, and other ventilation and air handling applications; and fume exhaust systems that provide control of oil mist and fumes, as well as remove liquid particles and vapor phase emissions from rolling mill, machining, and other oil mist generating processes. This segment also markets a strip cooler under the JET*STAR name designed to cool metal strip coatings. The company?s Contracting/Services Group segment offers oil mist collection, dust collecti on, industrial exhaust, chip collection, make-up air, and automotive spray booth systems, as well as industrial and process piping, and other industrial sheet metal works. This segment also engages in fabricating parts, engineered subassemblies, and customized products for air pollution and non-air pollution systems from sheet, plate, and structurals. Its Component Parts Group segment manufactures and markets component parts for industrial air systems to contractors, distributors, and dealers. The company markets its products and services under the Kirk & Blum, CECO Filters, Busch International, CECO Abatement Systems, KB Duct, Effox, Fisher-Klosterman, Buell, A.V.C., FKI, and Flextor names. It serves aerospace, brick, cement, steel, ceramics, metalworking, printing, paper, food, foundries, utilities, metal plating, woodworking, chemicals, glass, automotive, ethanol, pharmaceuticals, and refining industries. CECO Environmental Corp. was founded in 1966 and is headquartered i n Cincinnati, Ohio.

Advisors' Opinion:
  • [By Seth Jayson]

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

Hot Prefered Stocks To Buy For 2014: P.T. Telekomunikasi Indonesia Tbk.(TLK)

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides telecommunication and network services worldwide. The company?s Fixed Wireline segment offers local, domestic long-distance, international telephone services, and other telecommunications services, including leased lines, telex, transponder, satellite, and very small aperture terminal (VSAT), as well as ancillary services. Its Fixed Wireless segment provides local and domestic long-distance code division multiple access-based telephone services, as well as other telecommunication services within a local area code. Perusahaan Perseroan?s Cellular segment offers mobile cellular telecommunication services. Its network services comprise satellite transponder leasing, satellite broadcasting, VSAT, audio distribution, and terrestrial and satellite-based leased lines. The company?s data and Internet services include short messaging service for fixed wire line, fixed wireless, and cellular phones, dial-up and broadband Internet access, virtual private network (VPN) frame relay, Internet protocol (IP) VPN, voice over IP for international calls, integrated services digital network connections, and other multimedia services. The company also provides information services, such as billing, directory assistance, and content services; and wireless application protocol, Web portal, ring back tones, voicemail, and building management services. In addition, it offers consultancy services, as well as constructs and maintains telecommunications facilities; interconnection services; telephone directory production services; and cable and pay television services. As of December 31, 2010, the company served 120.5 million customers, including 8.3 million fixed wireline telephone subscribers, 18.2 million fixed wireless telephone subscribers, and 94.0 million cellular telephone subscribers. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk was founded in 1884 and is headquartered in Bandung, Indonesia.

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    Leading and Lagging Sectors
    In trading on Friday, telecommunications services shares were relative leaders, up on the day by about 0.83 percent. Meanwhile, top gainers in the sector included NQ Mobile (NYSE: NQ), up 5.2 percent, and PT Telekomunikasi Indonesia Tbk (NYSE: TLK), up 5.3 percent. Basic materials shares fell about 0.33 percent in trading on Friday.

  • [By GuruFocus]

    Telekomunikasi Indonesia (TLK) Reached the 52-Week Low of $34.35

    The prices of Telekomunikasi Indonesia (TLK) shares have declined to close to the 52-week low of $34.35, which is 33.3% off the 52-week high of $50.61. Telekomunikasi Indonesia is owned by five Gurus we are tracking. Among them, two have added to their positions during the past quarter. Two reduced their positions.

Hot Prefered Stocks To Buy For 2014: Mercury General Corporation (MCY)

Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance products. The company also writes homeowners, commercial automobile and property, mechanical breakdown, fire, and umbrella insurance products. Its insurance products cover collision, property damage liability, bodily injury liability, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards for automobile policy holders. The company sells its policies through a network of independent agents in California, Florida, Georgia, Illinois, Texas, Oklahoma, New York, New Jersey, Virginia, Pennsylvania, Arizona, Nevada, and Michigan. Mercury General Corporation was founded in 1960 and is headquartered in Los Angeles, California.

Advisors' Opinion:
  • [By Chuck Carnevale] their website:

    ��ercury General (NYSE-MCY) is the leading independent broker and agency writer of automobile insurance in California and has been one of the fastest growing automobile insurers in the nation. It is ranked as the third largest private passenger automobile insurer in California, with total assets over $4 billion. Mercury also writes automobile insurance in Arizona, Florida, Georgia, Illinois, Michigan, Nevada, New Jersey, New York, Oklahoma, Pennsylvania, Texas and Virginia. In addition to automobile insurance, Mercury writes other lines of insurance in various states, including mechanical breakdown and homeowners insurance.��/p>

    [ Enlarge Image ]

    Performance and Dividends Impacted by Operating Stress

    It should be clear from the above graphs that the earnings records of these three Dividend Champions have been far from steady, consistent or reliable. Therefore, I cannot get comfortable either recommending them or investing in them because I cannot get comfortable predicting what their future operating results may be. Furthermore, by examining the performance results associated with the above earnings and price-correlated graphs illustrates a lot of uncertainty. A focus on the earnings growth rate column illustrates a lot of stress on each company�� ability to keep their dividend streaks alive (Blue Circles).

    [ Enlarge Image ]

    [ Enlarge Image ]

    [ Enlarge Image ]

    The Overvaluation Rejection

    Other reasons besides irregular earnings growth that caused a Dividend Champion to be rejected include one of my all-time favorites, valuation. Or to be more precise ��overvaluation. The following example, McCormick & Co. (MKC), represents one of my favorite Dividend Champions based on a very consistent above-average record of earnings growth that produced its impressive dividend streak. The only reason that this Dividend Champion was rejected was because of current overvaluation.

    [ Enlarge Imag

  • [By Fredrik Arnold]

    Ten Champion dogs that promised the biggest dividend yields into July included firms representing five of nine market sectors. The top stocks were three of five from the financial sector: Universal Health Realty Trust (UHT); Mercury General Corp. (MCY); Old Republic Int'l (ORI). The other two financial firms, HCP Inc., and United Bankshares Inc. (UBSI), placed sixth and eighth.

  • [By John Udovich]

    Auto sales are booming and that�� good news for large cap auto insurer�the Progressive Corporation (NYSE: PGR) along with small cap auto insurers Safety Insurance Group, Inc (NASDAQ: SAFT) and�Mercury General Corporation (NYSE: MCY) as they offer income to yield hungry investors as well as income in the form of dividends. Specifically, a Yahoo! Autos blog recently noted that last month, automakers sold 1.5 million new vehicles for the highest rate in years with�most industry forecasters expecting sales to�return to the level they hit before the 2008 recession of 16 million vehicles a year. The blog post then went on to note the three forces driving auto sales:

Hot Prefered Stocks To Buy For 2014: Matahari Department Store Tbk PT (LPPF)

PT Matahari Department Store Tbk operates as a multi-format retailer. The Company, based in Indonesia, operates as the Department Store division of Matahari Putra Prima. The Matahari Group is Indonesia's multi-format retailer with core retail businesses in fashion and household groceries businesses targeted for middle - upper middle consumers throughout the country. Advisors' Opinion:
  • [By Emma O��rien]

    PT Matahari Department Store (LPPF), Indonesia�� largest retailer, climbed 7.7 percent to 14,000 rupiah after the stock was added to the MSCI Emerging Markets Index.

Hot Prefered Stocks To Buy For 2014: Central Garden & Pet Company (CENTA)

Central Garden & Pet Company produces and sells various products for the pet, and lawn and garden supplies markets in the United States. The company operates in two segments, Pet, and Lawn and Garden. The Pet segment supplies products for dogs and cats comprising edible bones, edible and non-edible chews, dog and cat food and treats, toys, pet carriers, grooming supplies, and other accessories; and food, cages and habitats, toys, chews, and related accessories for birds, small animals, and specialty pets. It also offers animal and household health, and insect control products; aquariums, furniture and lighting fixtures, pumps, filters, water conditioners, food and supplements, and information and knowledge resources for fish, reptiles, and other aquarium-based pets; and products for horses and livestock. This segment sells its products to independent pet distributors, retail chains, grocery stores, mass merchants, and bookstores under various brand names, which include Ada ms, Aqueon, Avoderm, BioSpot, Farnam, Four Paws, Kaytee, Nylabone, Pinnacle, TFH, Zilla, Altosid, Comfort Zone, Coralife, Interpet, Kent Marine, Oceanic Systems, Pet Select, Pre-Strike, Super Pet, and Zodiac. The Lawn and Garden segment provides grass seeds; wild bird feed, bird feeders, bird houses, and other birding accessories; weed, grass, ant and other herbicide, insecticide, and pesticide products; and decorative outdoor lifestyle and lighting products, such as comprising potteries, trellises and other wood products, and holiday lighting products. This segment sells its products to retail chains, independent garden distributors, grocery stores, nurseries, and garden supply retailers under the AMDRO, GKI/Bethlehem Lighting, Ironite, Pennington, Sevin, Grant�s, Lilly Miller, Matthews Four Seasons, New England Pottery, Norcal Pottery, Over-N-Out, Smart Seed, and The Rebels brand names. The Company was founded in 1955 and is based in Walnut Creek, California.

Advisors' Opinion:
  • [By Sean Williams]

    Green paw
    The month of May has been one to forget for shareholders of Central Garden & Pet (NASDAQ: CENT  ) (NASDAQ: CENTA  ) . The maker of pet products as well as seeds and herbicides for lawn care tumbled after it missed Wall Street's earnings estimates for a second straight quarter. The biggest downside pressure came from its lawn care segment, which saw expenses rise as fertilizer margins fell. However, now could be the time to consider jumping on board this interesting pet/lawn care hybrid company, as it has the potential to unlock shareholder value in a number of ways.

  • [By Will Ashworth]

    At the end of the day, Liquidity Services is a business whose need is an ongoing one. With no debt and lots of cash, I like LQDT’s chances.

    Small Caps to Buy #3: Central Garden & Pet (CENTA)

    In addition to its stock dropping 36% in 2013, Central Garden & Pet (CENTA) has underperformed the S&P 500 by almost 18 percentage points during the past five years while everyone and their dog — small caps, large caps, whatever — has seen impressive gains over that same period.

Thursday, February 26, 2015

5 Best Paper Stocks To Own Right Now

Flickr, TaxCredits.

Some don't like talking about it because it's political, but the shift in wealth inequality is one of the most important economic stories of the last 20 years.

Harvard economist Greg Mankiw -- one of the smarter economic thinkers of our day -- wrote a thought-provoking paper on wealth inequality this week that makes an important point: No one should (and few do) look down on wealth earned by those who create valuable goods and services. Bill Gates. Mark Zuckerberg. Steve Jobs. These men became astronomically rich, but they transformed our lives for the better -- and people love them for it. Mankiw's paper broadly argues that wealth inequality is a good thing if those getting rich are the Gates, Zuckerbergs, and Jobses of the world. And he's right, of course.�

Here's the problem, Mankiw writes:

The last thing we need is for the next Steve Jobs to forgo Silicon Valley in order to join the high-frequency traders on Wall Street. That is, we shouldn't be concerned about the next Steve Jobs striking it rich, but we want to make sure he strikes it rich in a socially productive way.

5 Best Mid Cap Stocks To Watch Right Now: Weyerhaeuser Company(WY)

Weyerhaeuser Company, a forest products company, grows and harvests trees, builds homes, and manufactures forest products worldwide. It grows and harvests trees for use as lumber, other wood and building products, and pulp and paper. The company manages 6.4 million acres of private commercial forestland; and has long-term licenses on 13.9 million acres of forestland. It also offers timber; minerals, such as rock, sand, and gravel, as well as oil and gas to construction and energy markets; logs; timberland tracts; and seed and seedlings, poles, plywood, and hardwood lumber products. In addition, the company provides structural lumber products for structural framing; engineered lumber products for floor and roof joists, and headers and beams; structural panels for structural sheathing, subflooring, and stair treading for wood products dealers, do-it-yourself retailers, builders, and industrial users. Further, it offers building products comprising cedar, decking, siding, ins ulation, rebar, and engineered lumber connectors. Additionally, the company offers fluff pulp for use in sanitary disposable products; papergrade pulp for printing and writing papers, and tissues; specialty chemical cellulose pulp for use in textiles, absorbent products, specialty packaging, and high-bulking fibers; liquid packaging board converted into containers; and slush and wet lap pulp for manufacturing paper products. It also constructs single-family houses, as well as develops residential lots and land for construction and sale; and master-planned communities with mixed-use property. The company sells its cellulose fibers products through direct sales network, and liquid packaging products directly to carton and food product packaging converters; and wood products through sales organizations and distribution facilities. Weyerhaeuser Company has been elected to be taxed as a real estate investment trust. The company was founded in 1900 and is headquartered in Federal Way, Washington.

Advisors' Opinion:
  • [By Louis Navellier]

    Take a look:

    General Motors (GM): In the past three months, estimates have been revised down by 24%. Analysts now forecast a 46.4% drop in sales and a 47.7% plunge in earnings for this quarter. HES is a sell. Goldman Sachs (GS): In the past month, estimates have slipped by 9%. Analysts now see a 12.2% decline in sales and a 15.6% drop in earnings for this quarter. GS is a sell. Hess (HES): In the past three months, the consensus estimate has plummeted by 52%. Analysts now expect just 3.5% annual sales growth and a 25.4% drop in earnings for this quarter. . International Business Machines (IBM): In the past 90 days, analysts have revised their estimates down by 29%. The consensus now calls for a 2% drop in sales and a 15% reduction in earnings. IBM is a sell. Mattel (MAT): In the past 60 days, estimates have fallen by 33%. Analysts now expect a 5.2% year-on-year drop in sales and a 27.3% decline in earnings for this quarter. . Newmont Mining (NEM) In the past 90 days, analysts have slashed their estimates down by 55%. The consensus now calls for a 14.9% drop in sales and a 73.2% dive in earnings. NEM is a strong sell. Nordstrom (JWN): In the past two months, estimates have fallen by 15%. Analysts now expect just 4.3% annual sales growth and a 6.8% decline in earnings for this quarter. . Target (TGT): In the past 90 days, analysts have reduced their estimates down by 28%. The consensus now calls for just 2% sales growth and an 11% decline in earnings. TGT is a strong sell. Tesoro (TSO): In the past 90 days, the consensus estimate has plunged 39%. The consensus now calls for 10% annual sales growth and a 5.5% reduction in earnings. TSO is a sell. Weyerhaeuser (WY): In the past three months, estimates have been reduced by 14%. Analysts now expect just 6.8% annual sales growth and a 3.8% dip in earnings for this quarter. WY is a strong sell.

    As I mentioned, there are two easy ways to check out how your holdings are perceived by the analyst community.

  • [By Charley Blaine]

    Results from truck-maker Paccar (NASDAQ: PCAR), toymaker Mattel (NASDAQ: MAT) and lumber-and-paper maker Weyerhaeuser (NYSE: WY) on Friday may offer a glimpse of what's ahead.

  • [By Blake Bos]

    Additionally, Blake shares some key factors to be managed that will impact earnings for lumber suppliers such as Weyerhaeuser (NYSE: WY  ) moving forward.

  • [By Matt DiLallo]

    Not only are�homebuilders�benefiting�but this improvement in housing has had a nice effect on the bottom line of forestry companies.�Weyerhaeuser (NYSE: WY  ) �saw its first-quarter earnings more than triple as its wood products business reported its strongest quarterly earnings since 2005. Industry peer Rayonier (NYSE: RYN  ) also experienced a successful first quarter as its income from continuing operations nearly doubled year over year from $52 million last year to $103 million.

5 Best Paper Stocks To Own Right Now: CenturyLink Inc.(CTL)

CenturyLink, Inc., together with its subsidiaries, operates as an integrated communications company. The company provides a range of communications services, including voice, Internet, data, and video services in the continental United States. Its services include local exchange and long distance voice telephone services, as well as enhanced voice services, such as call forwarding, caller identification, conference calling, voicemail, selective call ringing, and call waiting; wholesale local network access services; and data services, including high-speed Internet access services, data transmission services over special circuits and private lines, and switched digital television services, as well as special access and private line services. The company also offers fiber transport, competitive local exchange carrier, security monitoring, and other communications, as well as professional and business information services. In addition, it provides other related services, such as leasing, selling, installing, and maintaining customer premise telecommunications equipment and wiring; payphone services; and network database services, as well as participates in the publication of local telephone directories. Further, the company offers printing, direct mail services, and cable television services; and wireless broadband Internet access services and satellite television services. As of December 31, 2010, it operated approximately 6.5 million telephone access lines. CenturyLink, Inc was founded in 1968 and is based in Monroe, Louisiana.

Advisors' Opinion:
  • [By Lisa Levin]

    CenturyLink (NYSE: CTL) shares touched a new 52-week low of $29.37. CenturyLink shares have dropped 26.43% over the past 52 weeks, while the S&P 500 index has gained 23.42% in the same period.

  • [By Mike Deane]

    CenturyLink, Inc. (CTL) announced its third quarter earnings after the bell on Wednesday, with core revenues tumbling 1% from last year’s Q3 figure.

    CTL Earnings In Brief

    -The company announced operating revenues of $4.52 billion, which was slightly above the analyst consensus of $4.51 billion.
    -The company’s adjusted earnings came in at $375 million, or 63 cents per share; this is in line with analysts’ EPS estimates.
    -CTL gave EPS guidance for the fourth quarter of 55 cents to 60 cents, which is below the 63 cents that analysts are expecting.
    -Q4 guidance for revenue is in the range of $4.5 billion to $4.55 billion, which is in line with analysts’ views.

    CEO Commentary

    Glen F. Post III, the CEO and president of CenturyLink, had the following to say about the company’s quarterly results:

    “Overall, we continue to perform well with particular strength in our Business segment where sustained demand for high-bandwidth services and solid sales momentum continue to drive strong results.�Despite this overall solid operating performance in the third quarter, there was a special item which significantly impacted our�financial results�for the quarter. We were required, under GAAP, to recognize a non-cash $1.1 billion impairment to the goodwill assigned to our Data Hosting segment. While we continue to be optimistic and encouraged about the future growth potential and value of our Data Hosting business, we are not currently achieving the forecasted growth and cash flows we originally projected.�As part of our accounting valuation process, past performance was a factor in the development of growth projections for our Data Hosting business in future periods.”

    No Mention of Dividend�

    CTL did not mention its dividend in the quarterly report, and last paid a dividend on September 19. Look for CTL to declare a dividend in mid-November. The company’s last dividend mov

  • [By Ben Levisohn]

    Consider: The S&P 500 telecom sector has dropped 0.3% at 12:53 p.m., even as the S&P 500 has gained 0.1% and the S&P 500 utilities sector has advanced 0.1%. But telecom is a weird grouping. For starters, there are just five telecom stocks in the S&P 500: Verizon (VZ), AT&T (T), CenturyLink (CTL), Frontier Communications (FTR) and�Windstream Holdings (WIN).

  • [By WWW.GURUFOCUS.COM]

    Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number T is trading at a discount to only 3.) above. Since T's tangible book value is not meaningful, a Graham number can not be calculated. The stock is trading at a 11.6% premium to its calculated fair value of $28.64. T did not earn any Stars in this section. Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description: 1. Free Cash Flow Payout 2. Debt To Total Capital 3. Key Metrics 4. Dividend Growth Rate 5. Years of Div. Growth 6. Rolling 4-yr Div. > 15% T earned one Star in this section for 3.) above and earned a Star for having an acceptable score in at least two of the four Key Metrics measured. The company has paid a cash dividend to shareholders every year since 1984 and has increased its dividend payments for 31 consecutive years. Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description: 1. NPV MMA Diff. 2. Years to > MMA T earned a Star in this section for its NPV MMA Diff. of the $1,161. This amount is in excess of the $500 target I look for in a stock that has increased dividends as long as T has. The stock's current yield of 5.76% exceeds the 3.68% estimated 20-year average MMA rate. Memberships and Peers: T is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers��Index and a Dividend Champion. The company's peer group includes: CenturyLink, I

5 Best Paper Stocks To Own Right Now: TriStar Wellness Solutions Inc (TWSI)

TriStar Wellness Solutions, Inc., formerly Biopack Environmental Solutions Inc., incorporated on August 28, 2000, is engaged in developing, marketing and selling, NCP's Beaute de Maman product lines, which is a line of skincare and other products specifically targeted for pregnant women, as well developing the Soft and Smooth Assets. The Company supplied biodegradable food containers and industrial packaging products to multinational corporations, supermarket chains and restaurants located across North America, Europe and Asia. In May 2013, the Company acquired HemCon Medical Technologies Inc.

The Company�� priority direct-to-consumer target markets are focused on women�� health and wound care. The second core product area is directed at the Direct-to-Consumer (DTC) wound care market space. During the year ended December 31, 2012, the Company focused the sales and marketing resources for the Beaute de Maman brand on efficient Internet portals via the brand Website and selected Web-based retailers.

Advisors' Opinion:
  • [By Peter Graham]

    Last Friday, small cap stocks Tristar Wellness Solutions Inc (OTCMKTS: TWSI) jumped 14.94% while Hybrid Coating Technologies (OTCBB: HCTI) and Bulova Technologies Group, Inc (OTCMKTS: BTGI) sank 23.53% and 13.04%, respectively. It should be mentioned that only one of these small cap stocks appears to be the subject of paid promotions or investor relations type activities. So what will these three small cap stocks do for investors this week? Here is a quick reality check to help you decide on a trading or investing strategy:

5 Best Paper Stocks To Own Right Now: International Paper Co (IP)

International Paper Company (International Paper), incorporated on June 23, 1941, is a global paper and packaging company, with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. The Company operates in four segments: Industrial Packaging, Printing Papers, Consumer Packaging and Distribution. As of December 31, 2012, in the United States, the Company operated 28 pulp, paper and packaging mills, 187 converting and packaging plants, 18 recycling plants and three bag facilities. Production facilities as of December 31, 2012 in Europe, Asia, Latin America and South America included 11 pulp, paper and packaging mills, 65 converting and packaging plants, and two recycling plants. It distribute printing, packaging, graphic arts, maintenance and industrial products principally through over 88 distribution branches in the United States and 32 distribution branches located in Canada, Mexico and Asia. As of December 31, 2012, it owned or managed approximately 327,000 acres of forestland in Brazil and had, through licenses and forest management agreements, harvesting rights on government-owned forestlands in Russia. On July 2, 2012, it sold Ontario and Oxnard (Hueneme), California containerboard mills to New-Indy Containerboard LLC, and its New Johnsonville, Tennessee containerboard mill to Hood Container Corporation. On January 3, 2013, it acquired joint venture partner, Sabanci Holding.

Industrial Packaging

International Paper is a manufacturer of containerboard in the United States. Its production capacity is about 14 million tons annually. The Company�� products include linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft. About 80% of its production is converted domestically into corrugated boxes and other packaging by its 178 United States container plants. In addition, it recycles approximately one million tons of old corrugated containers (OCC) and mixed and white paper through ! our 20 recycling plants. In Europe, our operations include one recycled fiber containerboard mill in Morocco and 20 container plants in France, Italy, Spain, and Morocco. In Asia, its operations include 19 container plants in China and additional container plants in Indonesia, Malaysia, Singapore, and Thailand. Its container plants are supported by regional design centers, which offer total packaging solutions and supply chain initiatives.

Printing Papers

International Paper is a producer of printing and writing papers. Products in this segment include uncoated and coated papers, uncoated bristols and pulp. This business produces papers for use in copiers, desktop and laser printers and digital imaging. End use applications include advertising and promotional materials, such as brochures, pamphlets, greeting cards, books, annual reports and direct mail. Uncoated papers also produce a variety of grades that are converted by its customers into envelopes, tablets, business forms and file folders. Uncoated papers are sold under private label and International Paper brand names that include Hammermill, Springhill, Williamsburg, Postmark, Accent, Great White, Chamex, Ballet, Rey, Pol and Svetocopy. The mills producing uncoated papers are located in the United States, France, Poland, Russia, Brazil and India. The mills have uncoated paper production capacity of approximately five million tons annually.

Pulp products include fluff, and southern softwood pulp, as well as southern and birch hardwood paper pulps. These products are produced in the United States, France, Poland, Russia, and Brazil and are sold around the world. International Paper facilities have annual dried pulp capacity of about 1.7 million tons.

Consumer Packaging

International Paper is a producer of solid bleached sulfate board with annual United States production capacity of about 1.7 million tons. Its coated paperboard business produces coated paperboard for a variety of packag! ing and c! ommercial printing end uses. Its Everest, Fortress, and Starcote brands are used in packaging applications for everyday products, such as food, cosmetics, pharmaceuticals, computer software and tobacco products. Its Carolina brand is used in commercial printing end uses, such as greeting cards, paperback book covers, lottery tickets, direct mail and point-of-purchase advertising. Its United States capacity is supplemented by about 365,000 tons of capacity at its mills producing coated board in Poland and Russia and by its International Paper & Sun Cartonboard Co., Ltd. joint venture in China, which has annual capacity of 1.0 million tons. Its Foodservice business produces cups, lids, food containers and plates through three domestic plants and four international facilities.

Distribution

xpedx, the Company�� North American merchant distribution business, distributes products and services to a number of customer markets, including commercial printers with printing papers and graphic pre-press, printing presses and post-press equipment; building services and away-from-home markets with facility supplies; manufacturers with packaging supplies and equipment, and to a number of customers, it provides distribution capabilities, including warehousing and delivery services. xpedx is the wholesale distribution marketer in these customer and product segments in North America, operating 108 warehouse locations in the United States and Mexico.

Advisors' Opinion:
  • [By Diane Alter]

    The last time a Dow shake-up caused such a stir was in April 2004, when AT&T (NYSE: T), Eastman Kodak (currently in bankruptcy proceedings), and International Paper Co. (NYSE: IP) were removed and replaced with American International Group Inc. (NYSE: AIG), Pfizer Inc. (NYSE: PFE), and Verizon Communications Inc. (NYSE: VZ).�

  • [By Anna Prior]

    International Paper Co.(IP) is ramping up payouts and stock buybacks, according to Barron’s, which called the company a cash machine. With the debt from recent acquisitions now paid down to a comfortable level, the company is turning its attentions to returning more capital to shareholders. The company’s shares have been under pressure from unusual factors, from a weak ruble to bad weather, but the company looks poised to regain momentum as it continues to improve operations, expand margins, and use its enormous free cash flow for dividend increases and share buybacks. Some on Wall Street see the shares rising as high as $66 to $70 a share-as much as 43% higher-in the next 12 months, as strong demand leads to tighter supplies in the containerboard market, eventually leading to rising prices and substantial earnings growth.

  • [By Dividend]

    International Paper (IP) has a market capitalization of $21.11 billion. The company employs 70,000 people, generates revenue of $27.833 billion and has a net income of $693.00 million. International Paper�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.377 billion. The EBITDA margin is 12.13 percent (the operating margin is 3.68 percent and the net profit margin 2.49 percent).

  • [By Paul Vigna]

    International Paper Co.(IP) said its third-quarter revenue edged up 1.3% on strong sales in the North American industrial-packaging segment, though restructuring costs continued to hurt profit as the company expands into emerging markets.

Wednesday, February 25, 2015

Best Medical Stocks To Own Right Now

Best Medical Stocks To Own Right Now: Biodel Inc (BIOD)

Biodel Inc. (Biodel), incorporated on December 3, 2003, is a development-stage speciality biopharmaceutical company focused on the development and commercialization of treatments for diabetes. The Company develops its product candidates by applying its formulation technologies to existing drugs. Its advanced program involves developing formulations of injectable recombinant human insulin (RHI). In addition to its ultra-rapid-acting insulin formulations, the Company has developed prototype formulations of a liquid glucagon, a basal insulin and a glucose responsive insulin, in each case for use by patients with diabetes. RHI-based formulation known as Linjeta was the subject of a New Drug Application (NDA).

The Company has two pivotal Phase III clinical trials with its preferred commercial formulation of Linjeta prior to re-submitting the NDA. In August 2011, it completed patient visits and analyzed top-line data from the first Phase 1 clinical trial of two RHI- based formulations. The trial was a single-center, randomized, double-blind, three-period crossover trial in 18 subjects with Type 1 diabetes. The purpose of the trial was to evaluate the pharmacokinetic and pharmacodynamic characteristics and injection site toleration of BIOD-105 and BIOD-107, as compared to the insulin analog marketed as Humalog. The Company conducted Phase I, Phase II and Phase III clinical trials comparing the performance of its Linjeta formulation of RHI to either Humulin, which is a branded formulation of RHI or Humalog. Its pivotal Phase III clinical trials were open-label, parallel group, randomized trials conducted at centers in the United States, Germany and India.

The Company competes with Eli Lilly, Novo Nordisk, Sanofi-Aventis, Halozyme Therapeutics, Inc. and MannKind Corporation.

Advisors' Opinion:
  • [By Roberto Pedone]

    One under-$10 specialty biopharmaceutical player that's starting to trend w! ithin range of triggering a big breakout trade is Biodel (BIOD), which is focused on the development and commercialization of innovative treatments for diabetes. This stock has been hit hard by the bears over the last three months, with shares down by 24%.

    If you take a look at the chart for Biodel, you'll notice that this stock is ripping higher here right off its 50-day moving average of $2.32 a share with strong upside volume. Volume on Thursday has so far registered over 750,000 shares, which is well above its three-month average action of 445,084 shares. This move is quickly pushing shares of BIOD within range of triggering a big breakout trade.

    Traders should now look for long-biased trades in BIOD if it manages to break out above some near-term overhead resistance levels at $2.52 to $2.60 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 445,084 shares. If that breakout triggers soon, then BIOD will set up to re-test or possibly take out its next major overhead resistance levels $3 to its 200-day moving average of $3.39 a share. Any high-volume move above $3.39 will then give BIOD a chance to tag $4 a share.

    Traders can look to buy BIOD off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $2.10 a share. One can also buy BIOD off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

  • [By Monica Gerson]

    Biodel (NASDAQ: BIOD) is expected to post a Q1 loss at $0.24 per share.

    First Majestic Silver (NYSE: AG) is estimated to post its Q1 earnings at $0.10 per share on revenue of $63.35 million.

  • source from Top Stocks To Buy For 2015:http://www.topstocksforum.com/best-medical-stocks-to-own-right-now-4.html

Tuesday, February 17, 2015

10 Best Healthcare Equipment Stocks To Own For 2015

10 Best Healthcare Equipment Stocks To Own For 2015: ICSGlobal Ltd (ICS)

ICSGlobal Limited is an Australia-based company. The principal activities of the Company during the fiscal year ended June 30, 2012 (fiscal 2012), were the operations of a holding company in Australia with a 100% owned subsidiary providing medical billing services in the United Kingdom. As of June 30, 2012, the Company owned Medical Billing and Collections (MBC) in the United Kingdom. The Company has owned a number of operating companies in Australia, the United States and the United Kingdom. As of June 30, 2012, the Company is focused on new business opportunities. As of June 30, 2012, the Companys subsidiaries included Thelma Pty Ltd, EziBill Pty Ltd and Thelma-EU Limited. Advisors' Opinion:
  • [By ovenerio]

    In this article, let's take a look at Analog Devices, Inc. (ADI), a $15.79 billion market cap company, which is a company that manufactures high-performance integrated circuits (ICs) used in analog and digital signal processing applications.

  • [By Dividends4Life]

    This week a few companies answered the call and rewarded their shareholders with higher cash dividends:

    Consolidated Edison Inc. (ED) engages in regulated electric, gas, and steam delivery businesses. January 16th the company increased its quarterly dividend 2.4% to $0.63 per share. The dividend is payable March 15, 2014, to stockholders of record on February 12, 2014. The yield based on the new payout is 4.7%.

    Cousins Properties Incorporated (CUZ), a real estate investment trust (REIT), owns, develops, and manages real estate portfolio, as well as performs certain real estate-related services. January 16th the company increased its quarterly dividend 66.7% to $0.075 per share. The dividend is payable February 24, 2014, to stockholders of record on February 10, 2014. The yield based on the new payout is 2.8%.

    Wisconsin Energy Corporation (WEC) generates and distributes electric energy,! as well as distributes natural gas. The company operates in two segments, Utility Energy and Non-Utility Energy. January 16th the company increased its quarterly dividend 2% to $0.3900 per share. The dividend is payable March 1, 2014, to stockholders of record on February 14, 2014. The yield based on the new payout is 3.8%.

    BlackRock Inc. (BLK) is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. January 16th the company increased its quarterly dividend 14.9% to $1.93 per share. The dividend is payable March 24, 2014, to stockholders of record on March 7, 2014. The yield based on the new payout is 2.4%.

    ONEOK Inc. (OKE) operates as a diversified energy company in the United States. January 15th the company increased its quarterly dividend 5.3% to $0.40 per share. The dividend is payable February 18, 2014, to stockholders of record on February 10, 2014. The yield based on the new payout is 2.5%.

    Omega Healthcare Investors Inc. (OHI) is a real es

  • source from Top Stocks To Buy For 2015:http://www.topstocksforum.com/10-best-healthcare-equipment-stocks-to-own-for-2015-3.html

Top 5 Safest Companies To Own For 2015

Top 5 Safest Companies To Own For 2015: Pershing Gold Corp (PGLC)

Pershing Gold Corporation, incorporated on August 2, 2007, is a gold and precious metals exploration company. The Company is pursuing exploration and development opportunities primarily in Nevada. It is focused on exploration at its Relief Canyon properties in Pershing County in northwestern Nevada. None of the Companys properties contain proven and probable reserves, and all of its activities on all of its properties are exploratory in nature. The Company seeks properties with known mineralization that are in an advanced stage of exploration and have previously undergone some drilling but are under-explored. It is focused on exploration of the Relief Canyon properties, recommissioning the Relief Canyon gold processing facility and, if economically feasible, commencing mining at the Relief Canyon Mine.

Relief Canyon Mine Property

The Companys Relief Canyon properties totals approximately 25,000 acres and consists of approximately 940 owned u npatented mining claims, 120 owned millsite claims, 170 leased unpatented mining claims, and leased and subleased private lands. The Company drilled 44 holes for approximately 28,500 feet in 2013. This drilling was on land adjacent to the current deposit and focused on extending and upgrading the existing deposit. In January 2013 the Company reported 32,541,000 tons of mineralized material at an average grade of 0.017 ounces of gold per ton and a cut-off grade of 0.0046 ounces of gold per ton.

Advisors' Opinion:
  • [By ValueInvestor7]

    I listen to investing advice from self-made billionaire investors, and I try to ignore advice from everyone else. I suspect readers on this website will appreciate this, where thankfully the Focus is still Gurus. To this end, I bring you the instructive story of Pershing Gold Corp (PGLC) and Levon Resources (TSE: LVN) (LVNVF).

  • source from Top Penny ! Stocks For 2015:http://www.seekpennystocks.com/top-5-safest-companies-to-own-for-2015.html

Sunday, February 15, 2015

Top Forestry Companies To Invest In 2015

Top Forestry Companies To Invest In 2015: Transglobe Energy Corp(TGA)

TransGlobe Energy Corporation operates as an exploration and production company with oil interests in the Arab Republic of Egypt and the Republic of Yemen. It has interests in 9 international blocks comprising 5.5 million acres. The company was formerly known as Dusty Mac Mines, Ltd. and changed its name to TransGlobe Energy Corporation in April 1996 as a result of its business focus shift from mineral exploration and extraction to oil and gas business. TransGlobe Energy Corporation was founded in 1968 and is headquartered in Calgary, Canada.

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    Leading and Lagging Sectors
    Wednesday morning, the financial sector proved to be a source of strength for the market. Leading the sector was strength from SouFun Holdings (NYSE: SFUN) and E-House (China) Holdings (NYSE: EJ). In trading on Wednesday, energy shares were relative laggards, down on the day by about 0.67 percent. Among the energy stocks, Endeavour International (NYSE: END)was down more than 22 percent, while TransGlobe Energy (NASDAQ: TGA) tumbled around 6 percent.

  • [By Seth Jayson]

    TransGlobe Energy (Nasdaq: TGA  ) is expected to report Q1 earnings on May 7. Here's what Wall Street wants to see:

    The 10-second takeaway
    Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict TransGlobe Energy's revenues will contract -10.7% and EPS will expand 80.0%.

  • [By Sean Williams]

    Overseas opportunity
    I can't say I'm someone who particularly likes to push my luck in regions of the world where political upheaval can threaten my investments. One such example where I've bucked that trend is AngloGold Ashanti in Africa, which dealt with a large labor strike that shut down two its mines for a significant amount of! time. This came on top of the higher-than-normal labor costs African metal miners already deal with. The next such name I'd like to add to this short list of exceptions is independent oil and gas driller TransGlobe Energy (NASDAQ: TGA  ) .

  • source from Top Stocks For 2015:http://www.topstocksblog.com/top-forestry-companies-to-invest-in-2015-2.html

Friday, February 13, 2015

Here's the Chart the Fed Doesn't Want You to See

Ever heard of the Taylor Rule?

Not many people have, but the folks at the U.S. Federal Reserve are very familiar with it - and they'd probably prefer that this highly respected guideline for the federal funds rate languish in obscurity.

Basically the Taylor Rule is a mathematical equation based on inflation, output, and other economic measures. It was created in 1993 by John B. Taylor, a renowned economics professor at Stanford University.

Ordinarily, the actual Fed funds rate should track within the range of where the Taylor Rule says it should be.

Title: Taylor Rule - Description: C:UsersdzeilerDesktopTaylor Rule.pngAnd for most of the past 30 years, that's pretty much what's happened.

But since 2009, the Fed funds rate has diverged from the Taylor Rule - a divergence that's getting bigger all the time.

It's yet another signal that the Fed's easy money policies - namely keeping interest rates near zero while pouring on quantitative easing (bond-buying) that makes effective interest rates negative - are becoming increasingly dangerous the longer they go on.

If the Federal Reserve were following the Taylor Rule, it would not only need to end all QE immediately, but it would actually have to raise interest rates.

And given the outcome of today's (Wednesday's) FOMC meeting, it doesn't look like the Federal Reserve is going to change course anytime soon.

"The Committee decided to await more evidence that [economic] progress will be sustained before adjusting the pace of its purchases," the FOMC statement read.

Translation: "We think the economy still needs our help, so we're going to keep the money-printing presses running at full speed."

That means the lines on the chart above are going to continue to head in opposite directions.

"This divergence is like the 'check engine' light in your car," Money Morning Chief Investment Strategist Keith Fitz-Gerald said. "But instead of looking under the hood, the Fed is ignoring the light and praying to God the engine doesn't blow up."

The Federal Reserve policymakers are disregarding the Taylor Rule, Fitz-Gerald said, because they're convinced they need to keep printing money to stimulate the stubbornly weak U.S. economy.

Top 10 Paper Stocks To Invest In 2015

Yet something doesn't seem to add up...

If the Taylor Rule is based on U.S. economic data, and the Federal Reserve uses U.S. economic data to set policy, why aren't they pointing in the same direction?

"The Fed's statistics are more cooked than a Christmas goose," Fitz-Gerald said, referring to the many adjustments to government statistics like inflation that have rendered them almost meaningless. "They've decided to ignore real-world inputs."

So basically the Federal Reserve is basing its policy on bad data, although they're doing it with their eyes wide open.

But by staying on this dangerous course despite warnings like the Taylor Rule, the Fed is taking a tremendous risk.

Why the Federal Reserve Should Heed the Taylor Rule

One problem Fitz-Gerald sees with Fed policy is that it has pushed the stock market to record levels without the underlying economic activity to support it.

"They're setting up an incredible stock bubble," Fitz-Gerald said. "The markets are up 83% since Q2 of 2009, but consumer spending is up only 9%."

That's become a problem in and of itself, he added.

"People are confusing the stock market gains with real growth," Fitz-Gerald said. "What the Fed is doing is not working. We have margin levels at record highs, the middle class getting squeezed with higher inflation, high unemployment."

In addition to stocks, Fitz-Gerald said Federal Reserve policy has also created a "bond market bombshell" and has launched a fresh wave of "currency wars," in which countries try to devalue their currencies to make their exports cheaper.

Sooner or later, the bubbles will burst. But instead of pulling back, the Federal Reserve just keeps creating more money, setting us all up for an even bigger economic disaster.

The trouble is, we've already gone way beyond the point of easy fixes.

Warning lights like the Taylor Rule keep flashing faster and more brightly, but the people who should be paying attention - the Federal Reserve and their supposed overseers, the U.S. Congress - know any attempt to deal with the problem would also be extremely disruptive.

"They want all gain and no pain, which contradicts the fundamental precept of capitalism - which is that failure and risk/reward go hand-in-hand," Fitz-Gerald said.

So America's decision makers all just close their eyes and cross their fingers.

"We don't know exactly when this engine will blow up," Fitz-Gerald said, "but they're all just hoping it won't happen on their watch."

The financial bubbles the policies of the Federal Reserve are creating present a clear and present danger to your money. But you can do something about it. Keith Fitz-Geraldhas some great advice on what you can do to prepare for the bursting of the bubbles...

Related Articles:

Money Morning:
Fed Strategy from Mohammed Ali Money Morning:
The First Thing Yellen Should Do to Save America

Thursday, February 12, 2015

Top 5 Growth Stocks To Own Right Now

TECO Energy (NYSE: TE  ) reported Q1 earnings (link opens a PDF) today, missing on sales but topping analysts' earnings estimates. First-quarter revenue clocked in at $661 million, just shy of Mr. Market's $668 million prediction. But what the company cut off the top line, it made up for on bottom-line numbers. EPS came in at $0.19, two cents above analyst expectations. Compared with Q1 2012, sales are down 5.2% and net income dropped 18%.�

"We are off to a good start for 2013, and our results this quarter position us well for the remainder of the year despite another mild winter in Florida," said TECO President and CEO John Ramil in a statement. "The utilities are benefiting from continued improvements in the state and local economies, and TECO Coal is operating profitably even in a weak market, with a strong focus on margins and cost control."

On a GAAP basis, regulated utility Tampa Electric continued to carry TECO, accounting for 76.6% of the company's total $41.5 million net income. However, the biggest gains came from its Peoples Gas System subsidiary, which boosted net income 25% to reach $13.8 million because of increased retail sales and 1.3% customer growth.

Top Energy Stocks To Invest In 2015: Thoratec Corporation(THOR)

Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. The company?s primary product lines include ventricular assist devices, such as HeartMate II, an implantable left ventricular assist device consisting of a rotary blood pump to provide intermediate and long-term mechanical circulatory support (MCS); and HeartMate XVE, an implantable and pulsatile left ventricular assist device for intermediate and longer-term MCS. Its ventricular assist devices also comprise Paracorporeal Ventricular Assist Device, an external pulsatile ventricular assist device, which provides left, right, and biventricular MCS approved for bridge-to-transplantation (BTT), including home discharge, and post-cardiotomy myocardial recovery; and Implantable Ventricular Assist Device, an implantable and pulsatile ventricular assist device designed to provide left, right, and biventricular MCS approved for BTT comprising hom e discharge, and post-cardiotomy myocardial recovery. The company also provides CentriMag, an extracorporeal full-flow acute surgical support platform that offers support up to 30 days for cardiac and respiratory failure. In addition, it offers PediMag and PediVAS extracorporeal full-flow acute surgical support platforms designed to provide acute surgical support to pediatric patients. The company sells its products through direct sales force in the United States, as well as through a network of distributors internationally. Thoratec Corporation was founded in 1976 and is headquartered in Pleasanton, California.

Advisors' Opinion:
  • [By Ali Berri]

    In trading on Thursday, healthcare shares were relative laggards, down on the day by about 0.62 percent. Meanwhile, top decliners in the sector included Thoratec (NASDAQ: THOR), down 28.4 percent, and PhotoMedex (NASDAQ: PHMD), off 14.6 percent.

Top 5 Growth Stocks To Own Right Now: Nordstrom Inc.(JWN)

Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It offers a selection of brand name and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey? boutiques, treasure & bond, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog. Nordstrom also provides a private label card, two Nordstrom VISA credit cards, and a debit card for Nordstrom purchases. The company?s credit and debit cards feature a shopping-based loyalty program. As of September 30, 2011, it operated 222 stores, including 117 full-line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure & bond store, and 1 clearance store in 30 states. The company was founded in 1901 and is based in Seattle, Washington.

Advisors' Opinion:
  • [By Ben Levisohn]

    JC Penney wasn’t the only department store reporting good news. Shares of Nordstrom (JWN) have jumped 9.8% to $67.50 after the retailer reported a profit of 72 cents a share, topping analyst forecasts.

Top 5 Growth Stocks To Own Right Now: Eastern Insurance Holdings Inc.(EIHI)

Eastern Insurance Holdings, Inc., through its subsidiaries, provides workers compensation insurance and reinsurance products in the United States. The company?s Workers Compensation Insurance segment provides traditional workers compensation insurance coverage products, including guaranteed cost policies, policyholder dividend policies, retrospectively-rated policies, deductible policies, and alternative market products to employers. This segment distributes its workers? compensation products and services through its independent insurance agents primarily in Pennsylvania, Delaware, North Carolina, Maryland, Indiana, and Virginia. Its Segregated Portfolio Cell Reinsurance segment offers alternative market workers compensation solutions comprising program design, fronting, claims administration, risk management, segregated portfolio cell rental, asset management, and segregated portfolio management services to individual companies, groups, and associations. Eastern Insurance Holdings, Inc. is headquartered in Lancaster, Pennsylvania.

Advisors' Opinion:
  • [By Lauren Pollock]

    ProAssurance Corp.(PRA) agreed to acquire Eastern Insurance Holdings Inc.(EIHI) for about $205 million, expanding the insurance company’s casualty insurance offerings. Eastern Insurance is a domestic casualty insurance group specializing in workers’ compensation products and services, among other things. ProAssurance plans to pay $24.50 in cash for each outstanding Eastern share, a 16% premium over Monday’s closing price.

Top 5 Growth Stocks To Own Right Now: Delphi Financial Group Inc. (DFG)

Delphi Financial Group, Inc., together with its subsidiaries, provides integrated employee benefit services. The company operates in two segments, Group Employee Benefit Products and Asset Accumulation Products. The Group Employee Benefit Products segment provides disability, group life, and excess workers? compensation insurance products to small and mid-sized employers. It also offers travel accident, voluntary accidental death and dismemberment, group dental, and limited benefit health insurance products, as well as assumed workers? compensation and casualty reinsurance. This segment markets its group products to employer-employee groups and associations in various industries primarily through independent brokers and agents. The Asset Accumulation Products segment primarily offers fixed annuities, such as single premium deferred annuities, flexible premium annuities, and multi-year interest guarantee products to individuals through networks of independent insurance agen ts. The company also provides integrated disability and absence management services, including event reporting, leave of absence management, claims and case management, and return to work management. Delphi Financial Group, Inc. was founded in 1987 and is based in Wilmington, Delaware.

Advisors' Opinion:
  • [By Holly LaFon]

    Some of Elliott Management�� top equity positions in the first quarter 2012 are Brocade Communications Systems (BRCD), Delphi Automotive (DFG), Iron Mountain (IRM) and News Corp. (NWS).

Wednesday, February 11, 2015

Top 5 Recreation Companies To Invest In 2014

Dude, these tax-revenue figures are really harshing my mellow.

NEW YORK (CNNMoney) It's been just three months since marijuana was legalized in Colorado, but economists don't think the state will raise as much in taxes as was hoped.

They had expected to raise $22.7 million before July from special sales taxes on recreational marijuana, but state economist Larson Silbaugh is skeptical.

About $3.4 million was raised in January and February, the only months for which sales have been reported so far.

"If current tax revenues keep coming in at the same pace, we won't meet that expectation," Silbaugh said.

Economists have also lowered the forecast for the full fiscal year ending in June 2015 to $54.7 million from $67 million.

Top 5 Gas Companies To Buy Right Now: Vitamin Blue Inc (VTMB)

Vitamin Blue, Inc. (Vitamin Blue), incorporated on May 25, 1999, is engaged in designing, manufacturing and distributing surf wear board shorts, t-shirts and fleece jackets) and surfing accessories (surf boards bags, roof rack pad and surf backpacks). The Company focuses on four types of retail outlets: surfboard manufacturers, surf shops, specialty stores and department stores. Vitamin Blue distributes the majority of its products through surfboard manufacturers and surf shops. The primary focus of Vitamin Blue is surf wear and surfing accessories. The Company�� primary distribution focuses on retail outlets in North America (the United States, Canada and Mexico). Vitamin Blue manufactures most of its surfing accessories and all of its surfwear in-house.

Surfboard Manufacturers

The Company�� surfboard manufactures retail outlet generally consists of single shops, where surfboards are designed, manufactured and marketed. It is the source for surfing accessories. This distribution channel focuses on the core surf market. The Company has relationships with manufacturers, such as Hap Jacobs, Bing Surfboards, Bark Boards and Ron House Shapes, Dewey Weber, Stewart Surfboards. Vitamin Blue surfing accessories are sold through this channel.

Surf Shops

The Company�� surf shops are generally single to multiple shops located in or near beach cities, focused on the central surf market. It tends to be privately owned. Surf shops also focus on the core surf market and provide an authentic retail source for complete lines of surfwear and surfing accessory products. The Company has relationships with manufacturers, such as Freeline Design (Santa Cruz, California), The Frog House (Newport Beach, California), Infinity Surfboards (Dana Point, California), Legends Surf (Carlsbad, California), Hi-Tech Surf Sports (Maui, Hawaii), Second Wind Sail and Surf (Maui, Hawaii), Hawaiian Island Surf and Sport (Maui, Hawaii) Kennedy Surfboards (Woodland Hills, California),! Malibu Surf Shack, (Malibu, California), E.T. Surf (Hermosa Beach, California), Spyder (Hermosa Beach, California), Costa Azul (Laguna Beach, California), Icons of Surf (San Clemente, California), Encinitas Surfboards (Encinitas, California), Nor Easter Surf Shop (Scituate, Massachusetts), Air & Speed Surf Shop (Montauk, New York), Xtreme Surf & Sport (East Northport, New York) and Marsh�� Surf Shop (Atlantic Beach, North Carolina). The complete line of Vitamin Blue products (surfwear and surfing accessories) is distributed through this channel.

Specialty Stores

The Company�� specialty stores type of retail outlet generally consists of single, regional and nationwide stores, and tends to be located in or near beach or resort communities, shopping centers, and shopping malls. Specialty stores distributing surf products primarily include tourist/vacation shops, sporting good stores (including Sports Chalet, Inc. - SPCHB), and regional and national retail stores (including Pacific Sunwear of California-PSUN and Zumiez, Inc.-ZUMZ). Vitamin Blue intends to use this type of retail outlet to distribute its surfwear.

Department Stores

The Company�� department stores type of retail outlet generally has stores located nationwide. It is located in shopping malls, such as Bloomingdale��, Macy��, Saks Fifth Avenue and Nordstrom. Vitamin Blue intends to use this type of retail outlet to distribute its surfwear.

Vitamin Blue�� surfing accessories include surfboard travel bags, which offer surfboard protection and can be used daily or for long distance surf trips; surf gear travel bags, which are duffle bags used to carry surfing essentials on surf trips; surf backpacks, which are specially, designed wet bag backpacks for wetsuit storage, and roof-rack pads, which is used on existing car roof racks for surfboard protection and security on daily surf outings.

The Company competes with Quicksilver, Inc., Billabong Intl, Hurley and! Volcom I! nc.

Advisors' Opinion:
  • [By Peter Graham]

    Small cap marijuana stocks Smart Ventures Inc (OTCMKTS: SMVR) and Vitamin Blue Inc (OTCMKTS: VTMB) jumped 40.28% and 38.6%, respectively, while hemp stock Astika Holdings Inc (OTCBB: ASKH) fell 13.75% on Friday. Moreover, only one of these small cap stocks seems to have been the subject of a few paid promotions or investor relations types of activities. So will all three of these marijuana or hemp stocks keep producing highs or lows for investors and traders alike? Here is a quick reality check:

  • [By Peter Graham]

    Small cap stocks Green Endeavors Inc (OTCMKTS: GRNE), Global Links Corporation (OTCMKTS: GLCO) and Vitamin Blue Inc (OTCBB: VTMB) were all making noticeable moves at the end of last week. On Friday, Green Endeavors Inc rose 8.11% and Global Links Corporation rose 13.96% while Vitamin Blue Inc fell 10%. Of course, small cap OTC stocks making large single digit or double digit moves in either direction aren�� all that unusual. Moreover, all of these small caps have been the subject of paid promotions. With that in mind, here is a closer look at all three to help you decide on an investing or trading strategy:

Top 5 Recreation Companies To Invest In 2014: Manchester United PLC (MANU)

Manchester United plc, formerly Manchester United Ltd., incorporated on April 30, 2012, is engaged in the operations of professional sports team. It provides manchester united a platform to generate revenue from multiple sources, including sponsorship, merchandising, product licensing, new media & mobile, broadcasting and matchday. The Company had three principal sectors: Commercial, Broadcasting and Matchday.

Commercial

Within the Commercial revenue sector, the Company had three revenue streams which include sponsorship revenue; retail, merchandising, apparel and product licensing revenue; and new media and mobile revenue. Retail, Merchandising, Apparel and Product Licensing, it markets and sells sports apparel, training and leisure wear and other clothing featuring the Manchester United brand on a global basis. In addition, it also sells other licensed products, from coffee mugs to bed spreads, featuring the Manchester United brand and trademarks. These products are distributed through Manchester United branded retail centers and e-commerce platforms, as well as its partners' wholesale distribution channels.

The Company retails, merchandizes, apparel & product licensing business is managed by Nike, who pays it a minimum guaranteed amount and a share of the business' cumulative profits. It has formed mobile telecom partnerships in 44 countries. In addition, it markets content directly to its followers through its Website, www.manutd.com, and associated mobile properties.

Broadcasting

The Company generates revenue from distribution and broadcasting of live football content. Broadcasting revenue is derived from the global television rights relating to the Premier League, Champions League and other competitions. In addition, its global television channel, MUTV, delivers Manchester United programming to 54 countries around the world. Broadcasting includes all revenue covering domestic and international television and radio rights. Broadc! asting revenue including, in some cases, prize money received by it in respect of the various competitions.

Matchday

The Company generates revenue during the matchday from the Old Trafford, a sports venue.

Other Matchday revenue includes matchday catering, event parking, program sales as well as membership and travel, Manchester United Museum revenue and a share of the ticket revenue from away matches in domestic cup competitions. Matchday revenue also includes revenue from other events hosted at Old Trafford, including other sporting events (including football matches as part of the London 2012 Olympic Games and the annual Rugby Super League Grand Final), music concerts and entertainment events.

Advisors' Opinion:
  • [By Trista Kelley]

    Science in Sport was created by cycling enthusiast Tim Lawson in a kitchen in 1992 and was bought by Provexis two years ago. About 60 percent of sales come from cyclists, though the brand has been raising its profile among other athletes with help from the London Olympics last year and from Wimbledon champion and Go gel user Andy Murray. SiS has also widened its appeal to soccer fans, supplying products to Manchester United Plc (MANU) players, Moon said.

  • [By Rich Smith]

    This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense and which ones investors should act on. Today, our headlines feature upgrades for mini-industrialist Stratasys (NASDAQ: SSYS  ) �and for remote computer access specialist LogMeIn (NASDAQ: LOGM  ) but a downgrade for publicly traded soccer club Manchester United (NYSE: MANU  ) . Let's take them one at a time, beginning with...

  • [By Rick Munarriz]

    4. Manchester United (NYSE: MANU  )
    OK, let's assume that the royal baby will share some degree of pride for one of the most successful franchises in all of sports.

  • [By CRWE]

    Manchester United plc (NYSE:MANU), one of the most popular and successful sports teams in the world, playing one of the most popular spectator sports on Earth, reported that it has rescheduled its fourth quarter and fiscal 2012 earnings conference call and live webcast.

Top 5 Recreation Companies To Invest In 2014: Drew Industries Inc (DW)

Drew Industries Incorporated, incorporated on March 20, 1984, is a supplier of components for recreational vehicle (RVs) and manufactured housing. The Company operates in two segments: the RV products segment (RV Segment), and the manufactured housing products segment (MH Segment). The Company�� operations are conducted through its wholly owned subsidiaries, Lippert Components, Inc. and its subsidiaries (Lippert) and Kinro, Inc. and its subsidiaries (Kinro), each of which has operations in both the RV Segment and the MH Segment. During the year ended December 31, 2012, the RV Segment accounted for 87% of net sales and the MH segment accounted for 13% of net sales. On February 21, 2012, the Company acquired the business and certain assets of the United States RV entry door operation of Euramax International, Inc. In February 2014, the Company's wholly-owned subsidiary, Lippert Components, Inc has acquired Innovative Design Solutions, Inc. (IDS).

RV Segment

The Company through its wholly owned subsidiaries manufactures and markets a variety of products used in the production of RVs, including steel chassis for towable RVs, axles and suspension solutions for towable RVs, slide-out mechanisms and solutions, thermoformed bath, kitchen and other products, manual, electric and hydraulic stabilizer and lifting systems, aluminum windows and screens, chassis components, furniture and mattresses, entry, baggage, patio and ramp doors, entry steps, awnings, and other accessories. The Company also supplies certain of these products to the RV aftermarket, and to adjacent industries, including manufacturers of truck caps, buses and trailers used to haul boats, livestock, equipment and other cargo. Operations of the Company's RV Segment consist primarily of fabricating, welding, painting and assembling components into finished products. The Company's RV Segment operations are conducted at 23 manufacturing and warehouse facilities throughout the United States, located in proximity to the cus! tomers they serve. Of these facilities, six also conduct operations in the Company's MH Segment. It markets extruded aluminum parts to manufacturers in other industries. The Company's RV Segment products are sold primarily to manufacturers of RVs such as Thor Industries Forest River (a subsidiary of Berkshire Hathaway, and other original equipment manufacturers (OEMs), and to distributors of aftermarket products.

MH Segment

The Company through its wholly owned subsidiaries manufactures and markets a variety of products used in the production of manufactured homes and to modular housing and mobile office units, including vinyl and aluminum windows and screens, steel chassis, steel chassis parts, axles, thermoformed bath and kitchen products, steel and fiberglass entry doors, and aluminum and vinyl patio doors. The Company also supplies windows, doors, and thermoformed bath products as replacement parts to the manufactured housing aftermarket, and to adjacent industries. MH Segment customers manufacture both manufactured homes and modular homes, and certain of the products manufactured by the Company are suitable for both types of homes. Operations of the Company's MH Segment consist primarily of fabricating, welding, thermoforming, painting and assembling components into finished products. The Company's MH Segment operations are conducted at 13 manufacturing and warehouse facilities throughout the United States, located in proximity to the customers they serve. Of these facilities, six also conduct operations in the Company's RV Segment. The Company's manufactured housing products are sold primarily to producers of manufactured homes such as Clayton Homes, Cavco Industries, Inc., Champion Home Builders, Inc., Skyline Corporation, and other OEMs, and to distributors of aftermarket products.

The Company competes with Kober Corporation and Dexter Axle Company.

Advisors' Opinion:
  • [By Grace L. Williams]

    Shares of Winnebago have gained 4.4% to $28.47 today at 3pm. Thor Industries (THO), which also makes recreational vehicles, has ticked up 0.1% to $57.56, Drew Industries (DW) has risen 0.3% to $48.74, Arctic Cat (ACAT) has advanced 1% to $59.87 and Polaris Industries (PII) has fallen 0.3% to $132.08.

  • [By John Udovich]

    The CEO of recreation vehicle (RV) stock Winnebago Industries, Inc (NYSE: WGO) recently appeared on CNBC to say that the economy is improving for RV makers, meaning its time to take a closer look at the stock plus take a look at the performance of other small cap RV stocks like Drew Industries, Inc (NYSE: DW), Skyline Corporation (NYSEMKT: SKY) and Thor Industries, Inc (NYSE: THO).

Top 5 Recreation Companies To Invest In 2014: Sealand Natural Resources Inc (SLNR)

Sealand Natural Resources Inc. (SLNR), incorporated on May 13, 2011, is a research and new product development company that manufactures, markets and sells new age functional beverages (SealandBirk), organic nutriceuticals, health supplements, medicinal raw materials and health food worldwide. SLNR specializes in research of natural new product development and mass market consumer product distribution. Its Products include Sealand BIRK, Sealand Living and Sealand research and development (R&D). Sealand Living Anew products offer supply of healing nutrients to athletic training.

Anew omega premium is a food supplement consists of shark cartilage powder, fish bone powder, and omega three polyunsaturated fatty acids. Anew omega premium is designed to reduce the decomposition, to stimulate resynthesis of the joint cartilage and to reduce pain. Omega Premium consists of shark cartilage powder, codfish backbone powder, and fish oil powder. Anew nutripeptin is a food supply. Sealand BIRK consists of five flavors original, elderflower, raspberry, blueberry, ginger and lime.

Advisors' Opinion:
  • [By CRWE]

    Last Friday, SLNR previously surged (+0.27%) up +0.02 at $7.43 with 425 shares in play at the close (ref. google finance July 26, 2013 ��Close).

    Sealand Natural Resources Inc. previously reported it has reached a distribution agreement with Nature’s Best.

    Nature’s Best, in business since 1969, is the largest privately owned wholesaler-distributor of health and natural food products in the Natural Products Industry. Nature’s Best provides a full-line of Certified Organic, Natural and Specialty products to retail stores throughout the Central, Southern and Western U.S., Alaska, Hawaii and Asia. Nature’s Best specializes in Retail Marketing Support, Web Services, Business Analysis Tools and Sales/Category Management Consulting.

  • [By CRWE]

    Today, SLNR has shed (-0.14%) down -0.01 at $7.27 with 125 shares in play thus far (ref. google finance Delayed: 11:13AM EDT June 28, 2013), but don�� let this get you down.

    Sealand Natural Resources Inc. previously reported recent company milestones as of May 31, 2013.

    Lars Poulsen, Chief Executive Officer of Sealand Natural Resources Inc., commented, ��ealand BIRK beverage has made significant progress on a number of important fronts. Sealand BIRK is a ‘first mover,’ in the market place offering a unique organic harvested beverage, packed with micro nutrients, no added sugar, less than 60 calories with health hydration attributes for consumers. In the market today, only extremes are available for consumers, ranging from water to high sugar, high calorie, nutritionally-deficient beverages. We organically harvest and deliver Sealand BIRK beverages for consumers that encourage improved health, while being clear that our products have key differentiating factors that set us apart from the competition.

  • [By CRWE]

    Today, SLNR remains (0.00%) +0.000 at $7.23 with 100 shares in play thus far (ref. google finance Delayed: 10:29AM EDT June 24, 2013).

    Sealand Natural Resources Inc. previously reported recent company milestones as of May 31, 2013.

    Lars Poulsen, Chief Executive Officer of Sealand Natural Resources Inc., commented, ��ealand BIRK beverage has made significant progress on a number of important fronts. Sealand BIRK is a ‘first mover,’ in the market place offering a unique organic harvested beverage, packed with micro nutrients, no added sugar, less than 60 calories with health hydration attributes for consumers. In the market today, only extremes are available for consumers, ranging from water to high sugar, high calorie, nutritionally-deficient beverages. We organically harvest and deliver Sealand BIRK beverages for consumers that encourage improved health, while being clear that our products have key differentiating factors that set us apart from the competition.

  • [By CRWE]

    Today, The Company remains (0.00%) +0.000 at $7.35 with 125 shares in play thus far (ref. google finance Delayed: 10:01AM EDT July 22, 2013).

    Sealand Natural Resources Inc. previously reported it has reached a distribution agreement with Nature’s Best.

    Nature’s Best, in business since 1969, is the largest privately owned wholesaler-distributor of health and natural food products in the Natural Products Industry. Nature’s Best provides a full-line of Certified Organic, Natural and Specialty products to retail stores throughout the Central, Southern and Western U.S., Alaska, Hawaii and Asia. Nature’s Best specializes in Retail Marketing Support, Web Services, Business Analysis Tools and Sales/Category Management Consulting.

Tuesday, February 10, 2015

Monetarism: Printing Money To Curb Inflation

Top 5 Healthcare Equipment Stocks To Own Right Now

Picture yourself as the host of an economists' dinner party where no one is having any fun (perhaps not a hard thing to imagine). There are two competing schools of thought on what should be done to fix the party. The Keynesian economists in the room would tell you to break out the party games and snacks, and then force people into a rousing game of Twister. Meanwhile, Milton Friedman and his monetarist pals have a different solution. Control the booze, and let the party take care of itself.

Of course, the economy is slightly more complicated than a dinner party gone bad. But the fundamental question is the same: Is it better to intervene when things go wrong, or attempt to prevent problems before they start? This article will explore the rise of the laid-back monetarist approach to controlling inflation, touching upon its proponents, successes and failures.

The Basics of Monetarism
Monetarism is a macroeconomic theory borne of criticism of Keynesian economics. It was named for its focus on money's role in the economy. This differs significantly from Keynesian economics, which emphasizes the role that the government plays in the economy through expenditures, rather than the role of monetary policy. To monetarists, the best thing for the economy is to keep an eye on the money supply and let the market take care of itself. In the end, the theory goes, markets are more efficient at dealing with inflation and unemployment.

Milton Friedman, a Nobel Prize-winning economist who once backed the Keynesian approach, was one of the first to break away from commonly accepted principles of Keynesian economics. In his work "A Monetary History of the United States, 1867-1960" (1971), a collaborative effort with fellow economist Anna Schwartz, Friedman argued that the poor monetary policy of the Federal Reserve was the primary cause of the Great Depression in the United States, not problems within the savings and banking system. He argued that markets naturally move toward a stable center, and an incorrectly set money supply caused the market to behave erratically. With the Bretton Woods system's collapse in the early 1970s and the subsequent increase in both unemployment and inflation, governments turned to monetarism to explain their predicaments. It was then that this economic school of thought gained more prominence.

Monetarism has several key tenets:

Control of the money supply is the key to setting business expectations and fighting inflation's effects. Market expectations about inflation influence forward interest rates. Inflation always lags behind the effect of changes in production. Fiscal policy adjustments do not have an immediate effect on the economy. Market forces are more efficient in making determinations. A natural unemployment rate exists; trying to lower the unemployment rate below that rate causes inflation. Quantity Theory of Money
The approach of classical economists toward money states that the amount of money available in the economy is determined by the equation of exchange:


MV=PT
Where:
M = the amount of money currently in circulation over a set time period
V = the "velocity" of money (how often money is spent or turned over during the time period)
P = the average price level
T = the value of expenditures or the number of transactions

Economists tested the formula and found that the velocity of money, V, often stayed relatively constant over time. Because of this, an increase in M resulted in an increase in P. Thus, as the money supply grows, so too will inflation. Inflation hurts the economy by making goods more expensive, which limits consumer and business spending. According to Friedman, "inflation is always and everywhere a monetary phenomenon." While economists following the Keynesian approach did not completely discount the role that money supply has on gross domestic product (GDP), they did feel that the market would take more time to react to adjustments. Monetarists felt that markets would readily adapt to more capital being available.

Money Supply, Inflation and the K-Percent Rule
To Friedman and other monetarists, the role of a central bank should be to limit or expand the money supply in the economy. "Money supply" refers to the amount of hard cash available in the market, but in Friedman's definition, "money" was expanded to also include savings accounts and other on-demand accounts.

If the money supply expands quickly, then the rate of inflation increases. This makes goods more expensive for businesses and consumers and puts downward pressure on the economy, resulting in a recession or depression. When the economy reaches these low points, the central bank can exacerbate the situation by not providing enough money. If businesses - such as banks and other financial institutions - are unwilling to provide credit to others, it can result in a credit crunch. This means there is simply not enough money to go around for new investment and new jobs. According to monetarism, by plugging more money into the economy, the central bank could incentivize new investment and boost confidence within the investor community.

Friedman originally proposed that the central bank set targets for the inflation rate. To ensure that the central bank met this goal, the bank would increase the money supply by a certain percentage each year, regardless of the economy's point in the business cycle. This is referred to as the k-percent rule. This had two primary effects: It removed the central bank's ability to alter the rate at which money was added to the overall supply, and it allowed businesses to anticipate what the central bank would do. This effectively limited changes to the velocity of money. The annual increase in money supply was to correspond to the natural growth rate of GDP.

Expectations
Governments had their own set of expectations. Economists had frequently used the Phillips curve to explain the relationship between unemployment and inflation, and expected that inflation increased (in the form of higher wages) as the unemployment rate fell. The curve indicated that the government could control the unemployment rate, which resulted in the use of Keynesian economics in increasing the inflation rate to lower unemployment. During the early 1970s, this concept ran into trouble as both high unemployment and high inflation were present.

Friedman and other monetarists examined the role that expectations played in inflation rates; specifically, that individuals would expect higher wages if inflation increased. If the government tried to lower the unemployment rate by increasing demand (through government expenditures), it would lead to higher inflation and eventually to firms firing workers hired to meet that demand bump. This would occur any time the government tried to reduce unemployment below a certain point, commonly known as the natural unemployment rate.

This realization had an important effect: monetarists knew that in the short run, changes to the money supply could change demand. But in the long run, this change would diminish as people expected inflation to increase. If the market expects future inflation to be higher, it will keep open market interest rates high.

Monetarism in Practice
Monetarism rose to prominence in the 1970s, especially in the United States. During this time, both inflation and unemployment were increasing, and the economy was not growing. Paul Volcker was appointed as chairman of the Federal Reserve Board in 1979, and he faced the daunting task of curbing the rampant inflation brought on by high oil prices and the Bretton Woods system's collapse. He limited the money supply's growth (lowering the "M" in the equation of exchange) after abandoning the previous policy of using interest rate targets. While the change did help the inflation rate drop from double digits, it had the added effect of sending the economy into a recession as interest rates increased.

Since monetarism's rise in the late 20th century, one key aspect of the classical approach to monetarism has not evolved: The strict regulation of banking reserve requirements. Friedman and other monetarists envisioned strict controls on the reserves held by banks, but this has mostly gone by the wayside as deregulation of the financial markets took hold and company balance sheets became ever more complex. As the relationship between inflation and the money supply became looser, central banks stopped focusing on strict monetary targets and more on inflation targets. This practice was overseen by Alan Greenspan, who was a monetarist in his views during most of his near-20-year run as Fed chairman from 1987 to 2006.

Criticisms of Monetarism
Economists following the Keynesian approach were some of the most critical opponents to monetarism, especially after the anti-inflationary policies of the early 1980s led to a recession. Opponents pointed out that the Federal Reserve failed to meet the demand for money, which resulted in a decrease in available capital.

Economic policies, and the theories behind why they should or shouldn't work, are constantly in flux. One school of thought may explain a certain time period very well, then fail on future comparisons. Monetarism has a strong track record, but it is still a relatively new school of thought, and one that will likely be refined further over time.

Monday, February 9, 2015

Facebook Adopts Twitter's Golden Child: The Hashtag

It was inevitable. Hashtags finally made their debut on Facebook (NASDAQ: FB  ) earlier this week. For users, this means an easier way to view discussion feeds and one more method for staying connected to a virtual community. But what about for investors? This is yet another change that will make the site stickier, boosting switching costs for Facebook's more than 1.11 billion monthly active users. 

Hashtags build community
For longtime Instagram, Twitter, Tumblr, and Pinterest users, hashtags are nothing new. For anyone else who's still catching up, these are the keywords, trends, or topics within a social-networking platform that are prefixed with the pound symbol. You might see something like "#NBAfinals" or "#Obama" crop up as users offer related commentary about these topics in their tweets or posts.


Source: Facebook Newsroom.

But what really makes hashtags powerful is that they're hyperlinked to a feed that displays all conversations mentioning that hashtagged word or phrase within a given social-media site. Or, as Facebook announced in its press release, it's "a simple way to see the larger view of what's happening or what people are talking about."

With hundreds of millions of people using Facebook every day, the company had an opportunity to create additional, untapped value by bringing together people who are talking about the same things, especially if they might not be otherwise connected. For instance, the popular TV series Game of Thrones recently aired its "Red Wedding" episode and "received over 1.5 million mentions on Facebook," according to the company. The buzz for this year's Oscars translated to 66.5 million interactions on Facebook, and the company is smart to want to capitalize on those numbers.

All of these interactions among users can be brought together into relevant, powerful conversations. All it takes is a simple, linkable hashtag.

Important implications
Aside from making Facebook more useful for members, there are other important implications sure to pique the interest of investors: 

Facebook can now easily steal traffic from Twitter, Tumblr, and Pinterest. How? For users who reshare to Facebook their posts from other social-media platforms, their hashtags will become clickable, linking back to the related conversation on Facebook. Facebook advertisers will gain higher returns on investment through the use of hashtags, as the same hashtag can now be used across all social networks. In the future, advertisers are likely to be able to target their advertisements based on users' hashtag habits, giving advertisers a new marketing opportunity.

There's more coming
The hashtag has always been known as a major driver behind microblogging website Twitter. Facebook's move to adopt the hashtag undoubtedly places the company as a direct competitor to Twitter. That's a good thing for Facebook investors -- Twitter is no small social network. It had more than 200 million monthly active users reported as of last December, up from 140 million last March. 

And don't expect the changes to stop here. Facebook says this initial hashtag rollout is just the beginning. There's plenty more to come for advertisers, according to the company: 

Hashtags are a first step in surfacing relevant and important public conversations. Over time our goal is to build out additional functionality for marketers, including trending hashtags and new insights so that you can better understand how hashtags fit into your overall Facebook advertising strategies and drive your business objectives.

This hashtag rollout is yet another way Facebook continues to strengthen its value proposition for advertisers.

After the world's most-hyped IPO turned out to be a dud, many investors don't even want to think about shares of Facebook. But there are things every investor needs to know about this revolutionary company. The Motley Fool's newest premium research report shows that there's a lot more to Facebook than meets the eye. Read up on whether there is anything to "like" about it today to determine if Facebook deserves a place in your portfolio. Access your report by clicking here.