Thursday, November 28, 2013

Top Medical Stocks To Own For 2014

Shares of medical robotics maker Intuitive Surgical (NASDAQ: ISRG  ) are in free-fall today after yesterday's earnings, with the stock plummeting 4.7% after losing a bundle yesterday as well. Earnings aren't the disappointment, however: Intuitive destroyed analyst expectations and showed solid growth in both procedures and device sales. Investors haven't been so kind to the stock, however, and with shares of the company down almost 8% in the last five days alone, it's time to ask: Why is everyone selling this stock?

Investors in a panic attack
The company's financial footing certainly isn't the culprit. Intuitive drilled earnings-per-share expectations, topping projections by $0.58 and beating revenue estimates by almost $30 million. The firm also racked up double-digit growth in both categories over the quarter a year ago, including growth of more than 30% in EPS.

So, what's really behind Intuitive's fall? It's fear.

The company has been in the spotlight recently with concerns mounting about the safety of robotic surgery. Shares weren't helped when the Food and Drug Administration announced it would investigate the company's da Vinci surgical device's complaints, looking to evaluate if the costly machine (da Vinci devices cost around $1.5 million each) added any value over traditional surgeries. That was enough to spark fear among investors, who have panicked over the thought that robotic surgery could come under fire by safety regulators. The FDA's investigation isn't an indictment, however; it's simply a follow-up on complaints.

Top Medical Stocks To Own For 2014: Fuse Science Inc (DROP.PK)

Fuse Science, Inc. ( Fuse Science), incorporated on September 21, 1988, is a consumer products holding company. The Company maintains the rights to sublingual and transdermal delivery systems for bioactive agents that can effectively encapsulate and charge many varying molecules in order to produce complete product formulations which can be consumed orally, applied topically or delivered otherwise sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The Fuse Science technology is designed to accelerate conveyance of medicines or nutrients relative to traditional pills and liquids and can enhance how consumers receive these products. In December 2012, the Company launched its initial DROP products, PowerFuse, an energy formulation in a concentrated drop and ElectroFuse, an electrolyte formula in a concentrated drop, online, with the expansion into targeted retail distribution channels.

The Compan y is developing formulations and devices, which are compatible with alternative delivery systems for energy, medicines, vitamins and minerals, among other bioactives. These alternative systems include, but are not limited to, sublingual, transdermal and buccal drug delivery methods. use Science has developed and continues to advance, in conjunction with its scientific team, sublingual and transdermal delivery systems for bioactives that can effectively encapsulate and charge varying molecules in order to produce product formulations which can be consumed orally, applied topically or otherwise delivered sublingually or transdermally, thereby bypassing the gastrointestinal tract and entering the blood stream directly. The delivery technology is consists of encapsulation vesicles and ion exchange permeation enhancers. This technology utilizes a gradient across the mucosa membrane to help deliver the bioactive more efficiently through the mucosa.

The Company

Top Medical Stocks To Own For 2014: Uroplasty Inc (UPI.PH)

Uroplasty, Inc., incorporated in January 1992, is a medical device company that develops, manufactures and markets products for the treatment of voiding dysfunctions. The Company�� primary focus is on two products: the Urgent PC Neuromodulation system and Macroplastique Implants. The Urgent PC system is a United States Food and Drug Administration (FDA)-approved minimally invasive, office-based neuromodulation therapy for the treatment of overactive bladder (OAB) and associated symptoms of urinary urgency, urinary frequency, and urge incontinence; and Macroplastique Implants a urethral bulking agent for the treatment of adult female stress urinary incontinence primarily due to intrinsic sphincter deficiency (ISD). Outside of the United States, the Company�� Urgent PC is also approved for treatment of fecal incontinence, and Macroplastique is also approved for treatment of male stress incontinence and vesicoureteral reflux.

Urgent PC Neuromodulation Syst em

Using a small-gauge needle electrode inserted above the ankle, the Urgent PC System delivers electrical impulses to the tibial nerve that travel to the sacral nerve plexus, a control center for pelvic floor and bladder function. Components of the Urgent PC system include a hair-width needle electrode, a lead set, and an external, handheld, battery-powered stimulator. For each 30-minute, office-based therapy session, the physician or other qualified healthcare provider inserts the needle electrode in the patient�� lower leg and connects the electrode to the stimulator. Typically, a patient undergoes 12 consecutive weekly treatment sessions, with follow-up maintenance treatments as required to sustain the therapeutic effect. The Company has received regulatory clearances for sale of the Urgent PC system in the United States, Canada and Europe. It also has launched its second generation Urgent PC system.

Macroplastique

Macrop lastique is designed to restore the patient�� urinary co! nt! inence immediately following treatment. Macroplastique is a soft-textured, permanent implant injected, under endoscopic visualization, around the urethra distal to the bladder neck. It is a composition of heat vulcanized, solid, soft, irregularly shaped polydimethylsiloxane (solid silicone elastomer) implants suspended in a biocompatible excretable carrier gel. Macroplastique does not degrade, is not absorbed into surrounding tissues and does not migrate from the implant site. The Company has sold Macroplastique for several urological indications in over 40 countries outside the United States.

Other Uroplasty Products

The Company markets outside of the United States minimally invasive products to address fecal incontinence. Its PTQ Implants offer minimally invasive, soft-textured permanent implant for treatment of fecal incontinence. The PTQ Implants are implanted circumferentially into the submucosa of the anal canal, creating a bulking and support ive effect similar to that of Macroplastique injection for the treatment of stress urinary incontinence. The PTQ is Conformite Europeenne (CE) marked and is sold outside the United States in various international markets. The Urgent PC is also CE marked and sold outside of the United States for the treatment of fecal incontinence. In addition to urological applications, the Company markets its tissue bulking material outside the United States for otolaryngology vocal cord rehabilitation applications under the trade name VOX Implants. In the Netherlands and the United Kingdom only, the Company distributes certain wound care products in accordance with a distributor agreement.

The Company competes with Pfizer Inc., Johnson and Johnson, Novartis, Allergan, GlaxoSmithKline, Carbon Medical Technologies, BioForm, Inc., Q-Med AB and Contura.

Top 5 Casino Stocks To Own Right Now: Boston Scientific Corp (BSX)

Boston Scientific Corporation is a developer, manufacturer and marketer of medical devices that are used in a range of interventional medical specialties. During the year ended December 31, 2011, its products were offered for sale by seven core businesses: Interventional Cardiology, CRM, Endoscopy, Peripheral Interventions, Urology/Women�� Health, Neuromodulation, and Electrophysiology. In January 2011, it completed the acquisition of Intelect Medical, Inc. In January 2011, it completed the acquisition of Sadra Medical, Inc. In March 2011, the Company completed the acquisition of Atritech, Inc. In February 2011, it announced the acquisitions of S.I. Therapies and ReVascular Therapeutics, Inc. In January 2011, the Company sold its Neurovascular business to Stryker Corporation. In June 2012, the Company acquired Cameron Health, Inc. of San Clemente, California and, as a result, added to its product portfolio subcutaneous implantable cardioverter defibrillator, called the S-ICD System.

Interventional Cardiology

The Company offers coronary stent product. Coronary stents are tiny, mesh tubes used in the treatment of coronary artery disease, which are implanted in patients to prop open arteries and facilitate blood flow to and from the heart. The Company offers a two-drug platform strategy with its paclitaxel-eluting and everolimus-eluting stent system offerings, and it offers a range of stent sizes. The Company markets its next-generation internally-developed and self-manufactured PROMUS Element stent system in the United States, its Europe/Middle East/Africa (EMEA) region and certain Inter-Continental countries, including China and India. It markets the PROMUS everolimus-eluting stent system, supplied to the Company by Abbott Laboratories, in Japan. It also markets its TAXUS paclitaxel-eluting stent line, including its third-generation TAXUS Element paclitaxel-eluting stent system in the U.nited States, Japan, EMEA and certain Inter-Continental countries.

The Compa! ny markets a line of products used to treat patients with atherosclerosis, a principal cause of coronary artery obstructive disease. Its product offerings include balloon catheters, rotational atherectomy systems, guide wires, guide catheters, embolic protection devices, and diagnostic catheters used in percutaneous transluminal coronary angioplasty (PTCA). The Company markets a family of intraluminal catheter-directed ultrasound imaging catheters and systems for use in coronary arteries and heart chambers, as well as certain peripheral vessels. The iLab Ultrasound Imaging System continues as its flagship console and is compatible with its line of imaging catheters. The system is designed to enhance the diagnosis and treatment of blocked vessels and heart disorders. Sadra is developing a repositionable and retrievable device for transcatheter aortic valve replacement (TAVR) to treat patients with severe aortic stenosis. The Lotus Valve System consists of a stent-mounted tissue valve prosthesis and catheter delivery system for guidance and placement of the valve. Atritech has developed a device designed to close the left atrial appendage in patients with atrial fibrillation who are at risk for ischemic stroke. The WATCHMAN Left Atrial Appendage Closure Technology, developed by Atritech, is the first device proven in a randomized clinical trial to offer an alternative to anticoagulant drugs, and is approved for use in CE Mark countries.

Cardiac Rhythm Management

The Company develops, manufactures and markets a variety of implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities, including Implantable cardioverter defibrillator (ICD) systems used to detect and treat abnormally fast heart rhythms (tachycardia) that could result in sudden cardiac death, including implantable cardiac resynchronization therapy defibrillator (CRT-D) systems used to treat heart failure, and implantable pacemaker systems used to manage slow or irregular heart rhyth! ms (brady! cardia), including implantable cardiac resynchronization therapy pacemaker (CRT-P) systems used to treat heart failure. Its product offerings include its COGNIS cardiac resynchronization therapy defibrillator (CRT-D), its TELIGEN ICD systems and its ALTRUA family of pacemaker systems. During 2011, it began the United States launch of its next-generation line of defibrillators, INCEPTA, ENERGEN and PUNCTUA.

Endoscopy

The Company markets a range of products to diagnose, treat and ease a variety of digestive diseases, including those affecting the esophagus, stomach, liver, pancreas, duodenum, and colon. Common disease states include esophagitis, portal hypertension, peptic ulcers as well as esophageal, biliary, pancreatic and colonic cancer. The Company offers the Radial Jaw 4 Single-Use Biopsy Forceps, which are designed to enable collection of large high-quality tissue specimens without the need to use large channel therapeutic endoscopes. Its exclusive line of RX Biliary System devices are designed to provide greater access and control for physicians to diagnose and treat challenging conditions of the bile ducts, such as removing gallstones, opening obstructed bile ducts and obtaining biopsies in suspected tumors. The Company also markets the Spyglass Direct Visualization System for direct imaging of the pancreatico-biliary system. The Spyglass System is a single-operator cholangioscopy device that offers clinicians a direct visualization of the pancreatico-biliary system and includes supporting devices for tissue acquisition, stone management and lithotripsy. Its products also include the WallFlex family of stents, in particular, the WallFlex Biliary line and WallFlex Esophageal line; and in 2011, the Company launched its Advanix Biliary Plastic Stent System and the Expect Endoscopic Ultrasound Aspiration Needle in the United States and certain international markets. Its Resolution Clip Device is an endoscopic mechanical clip designed to treat gastrointestinal bleeding.

T! he Company markets devices to diagnose, treat and ease pulmonary disease systems within the airway and lungs. Its products are designed to help perform biopsies, retrieve foreign bodies from the airway, open narrowings of an airway, stop internal bleeding, and ease symptoms of some types of airway cancers. Its product line includes pulmonary biopsy forceps, transbronchial aspiration needles, cytology brushes and tracheobronchial stents used to dilate narrowed airway passages or for tumor management. Asthmatx, Inc. designs, manufactures and markets a less-invasive, catheter-based bronchial thermoplasty procedure for the treatment of severe persistent asthma. The Alair Bronchial Thermoplasty System, developed by Asthmatx, has both CE Mark and Food and Drug Administration (FDA) approval and is the first device-based asthma treatment approved by the FDA.

Peripheral Interventions

The Company sells various products designed to treat patients with peripheral disease, including a line of medical devices used in percutaneous transluminal angioplasty and peripheral vascular stenting. Its peripheral product offerings include stents, balloon catheters, wires, peripheral embolization devices and vena cava filters. In 2010 and 2011, it launched several of its products internationally, including the EPIC self-expanding nitinol stent system in certain international markets, and the Carotid WALLSTENT stent system in Japan. The Company launched three new peripheral angioplasty balloons in 2011, including its next-generation Mustang percutaneous transluminal angioplasty (PTA) balloon, its Coyote balloon catheter, a highly deliverable and ultra-low profile balloon dilatation catheter designed for a range of peripheral angioplasty procedures and its Charger PTA Balloon Catheter, a 0.035 inch percutaneous transluminal angioplasty balloon catheter designed for post-stent dilatation, as well as conventional balloon angioplasty to open blocked peripheral arteries. The Company has commenced a limited ma! rket rele! ase of its OFFROAD re-entry catheter system in certain international markets, and in February 2012, it launched its TRUEPATH intraluminal CTO device in the United States.

The Company sells products designed to treat patients with non-vascular disease. Its non-vascular suite of products include biliary stents, drainage catheters and micro-puncture sets designed to treat, diagnose and ease various forms of benign and malignant tumors. The Company continues to market its extensive line of Interventional Oncology product solutions, including the Renegade HI-FLO Fathom microcatheter and guidewire system and Interlock - 35 Fibered IDC Occlusion System for peripheral embolization. The Company�� FilterWire EZ Embolic Protection System is a filter designed to capture embolic material that may become dislodged during a procedure, which could otherwise travel into the microvasculature where it could cause a heart attack or stroke. It is commercially available in the United States, its EMEA region and certain Inter-Continental countries for multiple indications, including the treatment of disease in peripheral, coronary and carotid vessels. It is also available in the United States for the treatment of saphenous vein grafts and carotid artery stenting procedures.

Urology/Women�� Health

The Company�� Urology/Women�� Health division develops, manufactures and sells devices to treat various urological and gynecological disorders. The Company sells a variety of products designed to treat patients with urinary stone disease, stress urinary incontinence, pelvic organ prolapse and excessive uterine bleeding. The Company offers a line of stone management products, including ureteral stents, wires, lithotripsy devices, stone retrieval devices, sheaths, balloons and catheters.

The Company markets a range of devices for the treatment of conditions, such as female urinary incontinence, pelvic floor reconstruction (rebuilding of the anatomy to its original state), and ! menorrhag! ia (excessive menstrual bleeding). It offers a breadth of mid-urethral sling products, sling materials, graft materials, pelvic floor reconstruction kits, and suturing devices. The Company markets its Genesys Hydro ThermAblator (HTA) system, a next-generation endometrial ablation system designed to ablate the endometrial lining of the uterus in premenopausal women with menorrhagia. The Genesys HTA System features a smaller and lighter console, simplified set-up requirements, and an enhanced graphic user interface and is designed to improve operating performance.

Neuromodulation

The Company within its Neuromodulation business markets the Precision Spinal Cord Stimulation (SCS) system, used for the management of chronic pain. In 2011, the Company launched its Clik Anchor for its Precision Plus SCS System, a rechargeable SCS device for chronic pain management. During 2011, it received FDA approval for and launched the Infinion 16 Percutaneous Lead, a 16-contact percutaneous lead. The Company also markets the Linear 3-4 and Linear 3-6 Percutaneous Leads for use with its SCS systems, which are designed to provide physicians more treatment options for their chronic pain patients. Intelect Medical, Inc. is a development-stage company developing advanced visualization and programming for the Vercise system.

Electrophysiology

The Company within its Electrophysiology business develops less-invasive medical technologies used in the diagnosis and treatment of rate and rhythm disorders of the heart. Included in its product offerings are radio frequency (RF) generators, steerable RF ablation catheters, intracardiac ultrasound catheters, diagnostic catheters, delivery sheaths, and other accessories. Its products include the Blazer and Blazer Prime line of temperature ablation catheters, designed to deliver enhanced performance, responsiveness, and durability. Its cooled ablation portfolio includes the closed-loop irrigated catheter on the market, the Chilli II cooled! ablation! catheter, and the newly launched Blazer Open-Irrigated ablation catheter with a Total Tip Cooling Design.

The Company competes with Abbott Laboratories, Medtronic, Inc., St. Jude Medical, Inc. and Johnson & Johnson.

Advisors' Opinion:
  • [By Dan Caplinger]

    Still, the big challenge for Abbott will come from the medical-device arena, where many of Abbott's peers are struggling. Johnson & Johnson (NYSE: JNJ  ) has seen double-digit percentage sales declines in its cardiovascular equipment division, with growth coming solely from its major acquisition of Synthes. Meanwhile, Boston Scientific (NYSE: BSX  ) has suffered even steeper declines in sales than Abbott, as its cardiac rhythm management business in particular has seen increased pricing pressure from competition. Abbott and Boston Scientific both compete in the drug-eluting stent niche, and even though Abbott has come out with recent advances, its stent sales were down 15% in the U.S. last quarter. Still, the company sees the area as having promise, as just this morning, Abbott announced it would acquire leg-stent maker Idev for $310 million.

  • [By Dan Carroll]

    Boston Scientific (NYSE: BSX  ) hasn't been as quick to jump on the bandwagon as St. Jude and Medtronic have, but this cardiovascular-focused firm won't be left behind. Facing struggling sales from its CRM and interventional cardiology businesses, Boston Scientific pushed into renal denervation with its purchase of Vessix Vascular late last year. While Vessix's V2 renal denervation system has a long way to go before being approved in the U.S., it has already earned European and Australian regulatory approval.

Top Medical Stocks To Own For 2014: EntreMed Inc (ENMD.PH)

EntreMed, Inc. (EntreMed), incorporated in 1991, is a clinical-stage pharmaceutical company. EntreMed's drug candidate is ENMD-2076, an Aurora A and angiogenic kinase inhibitor for the treatment of cancer. ENMD-2076 has completed Phase I studies in patients with advanced solid tumors, multiple myeloma and leukemia and is completing data for a multi-center Phase II study in patients with platinum resistant ovarian cancer. The Company�� other product candidates have includes MKC-1, ENMD-1198 and 2-methoxyestrdiol (2ME2, Panzem) for treatment of rheumatoid arthritis.

ENMD-2076 is a novel orally-active, Aurora A/angiogenic kinase inhibitor with potent activity against Aurora A and multiple tyrosine kinases linked to cancer and inflammatory diseases. ENMD-2076 is relatively selective for the Aurora A isoform in comparison to Aurora B. Aurora kinases are key regulators of the process of mitosis, or cell division, and are often over-expressed in human cancers. E NMD-2076 exerts its effects through multiple mechanisms of action, including anti-proliferative activity and the inhibition of angiogenesis. ENMD-2076 has demonstrated significant, dose-dependent preclinical activity as a single agent, including tumor regression, in multiple xenograft models (such as breast, colon, leukemia), as well as activity towards ex vivo-treated human leukemia patient cells.

Top Medical Stocks To Own For 2014: Revolutions Medical Corp (RMCP)

Revolutions Medical Corporation (Revolutions Medical), incorporated on August 16, 1996, is principally engaged in the designing, developing and commercializing of retractable vacuum safety needle devices. The Company is engaged in the development of technology which can segment and reference MRI images. The Company also has developed a suite of MRI software tools; RevColor, Rev3D, RevDisplay, and RevScan. MRI (Magnetic Resonance Imaging) is used imaging system that safely creates many different and detailed views of selected portions of the internal anatomy.

The RevVac safety syringe uses vacuum technology to retract the needle into the plunger immediately after use. The syringe cannot be reused once the vacuum is activated. When an MRI is taken, the black and white images are sent to a picture archiving and communication system (PACS), which displays the images for a radiologist to view. By using high speed Internet, these images can be securely sent to the Company�� secure Website, after a secure account is opened. This process is called teleradiology.

The Company competes with Med-Design Corporation, New Medical Technologies, Retractable Technologies, Inc., Unilife, Inc., Specialized Health Products International, BD and Covidien Ltd, Terumo Medical Corp. and B. Braun internationally.

Top Medical Stocks To Own For 2014: Navidea Biopharmaceuticals Inc (NAVB)

Navidea Biopharmaceuticals, Inc. (Navidea), formerly Neoprobe Corporation, incorporated in 1983, is a biopharmaceutical company focused on the development and commercialization of precision diagnostic agents. As of December 31, 2011, the Company�� radiopharmaceutical development programs included Lymphoseek (Lymphoseek, Kit for the Preparation of Technetium Tc99m for Injection), a radiopharmaceutical agent for lymph node mapping; AZD4694, an imaging agent, and RIGScan, a tumor antigen-specific targeting agent. In January 2012, the Company executed an option agreement with Alseres Pharmaceuticals, Inc. (Alseres) to license [123I]-E-IACFT Injection, also called Altropane, an Iodine-123 radiolabeled imaging agent, being developed as an aid in the diagnosis of Parkinson�� disease, movement disorders and dementia. In August 2011, the Company sold its gamma detection device line of business (the GDS Business) to Devicor Medical Products, Inc.

Lymphoseek

Navidea�� pipeline includes clinical-stage radiopharmaceutical agents used to identify the presence and status of disease. Lymphoseek (Kit for the Preparation of Technetium Tc99m for Injection) is a lymph node targeting agent intended for use in intraoperative lymphatic mapping (ILM) procedures and lymphoscintigraphy employed in the overall diagnostic assessment of certain solid tumor cancers. The lymph system is a component of the body�� immune system. The key components of the lymph system are lymph nodes-small anatomic structures that contain disease-fighting lymphocytes, filter lymph of bacteria and cancer cells, and signal infection in response to heightened levels of pathogens. In Navidea�� Phase III clinical studies of Lymphoseek, it detected over 99% of positive nodes identified by vital blue dye (VBD). As of December 31, 2011, Navidea, in co-operation with UC, San Diego affiliate (UCSD), completed or initiated five Phase I clinical trials, one multi-center Phase II trial and three multi-center Phase II trials inv! olving Lymphoseek. Two Phase III studies were completed in subjects with breast cancer and melanoma. During the year ended December 31, 2011, data from NEO3-09 were released, which indicated that all primary and secondary endpoints for the study were met. As of December 31, 2011, third Phase III clinical trial for Lymphoseek in subjects with head and neck squamous cell carcinoma (NEO3-06) was in progress.

AZD4694

AZD4694 is a Fluorine-18 labeled precision radiopharmaceutical candidate for use in the imaging and evaluation of patients with signs or symptoms of cognitive impairment such as Alzheimer's disease (AD). It binds to beta-amyloid deposits in the brain that can then be imaged in positron emission tomography (PET) scans. Amyloid plaque pathology is a required feature of AD and the presence of amyloid pathology is a supportive feature for diagnosis of probable AD. Patients who are negative for amyloid pathology do not have AD. AZD4694 has been studied in several clinical trials. Clinical studies through Phase IIa have included more than 80 patients to date, both suspected AD patients and healthy volunteers. No significant adverse events have been observed. Results suggest that AZD4694 has the ability to image patients quickly and safely with high sensitivity.

RadioImmunoGuided Surgery

As of December 31, 2011, RIGScan had been studied in a number of clinical trials, including Phase III studies. Navidea has conducted two Phase III studies, NEO2-13 and NEO2-14, of RIGScan in patients with primary and metastatic colorectal cancer, respectively. Both studies were multi-institutional involving cancer treatment institutions in the United States, Israel, and the European Union.

The Company competes with Pharmalucence, Eli Lilly, Bayer Schering, General Electric and GE Healthcare.

Advisors' Opinion:
  • [By Keith Speights]

    3. Navidea Biopharmaceuticals (NYSEMKT: NAVB  )
    Some investors were likely befuddled by Navidea's stock action earlier this year. The company received FDA approval in March for Lymphoseek, its radiopharmaceutical agent used for imaging lymph nodes in patients with breast cancer or melanoma. That was great news, but shares dropped quickly and still haven't returned to previous levels.

  • [By Sean Williams]

    Another prime example here would be Navidea Biopharmaceuticals' (NYSEMKT: NAVB  ) Lymphoseek which is an injectable agent used in external lymph-node imaging and intra-operative lymphatic mapping. In English this means it will dramatically improve the staging and treatment options for patients with breast cancer. Being that breast cancer was also listed as a commonly misdiagnosed cancer, this is a big step in the right direction for patient care.

Top Medical Stocks To Own For 2014: InspireMD Inc (NSPR.A)

InspireMD, Inc., incorporated on February 29, 2008, is a medical device company. The Company is focusing on the development and commercialization of its stent platform technology, MGuard. MGuard provides embolic protection in stenting procedures by placing a micron mesh sleeve over a stent. Its initial products are marketed for use mainly in patients with acute coronary syndromes, notably acute myocardial infarction (heart attack) and saphenous vein graft coronary interventions (bypass surgery). The Company�� products include MGuard Coronary Plus Bio-Stable Mesh, MGuard Peripheral Plus Bio-Stable Mesh, MGuard Carotid Plus Bio-Stable Mesh and MGuard Coronary Plus Bio-Absorbable Drug-Eluting Mesh. Its initial MGuard Coronary products incorporated a stainless steel stent. The Company subsequently replaced this stainless steel platform with a more advanced cobalt-chromium based platform, which the Company refers to as the MGuard PrimeTM version of its MGuard Coronary. The Company operates in Germany through its wholly owned subsidiary InspireMD GmbH.

The Company focuses on applying its technology to develop additional products used for other vascular procedures, specifically carotid (the arteries that supply blood to the brain) and peripheral (other arteries) procedures. The MGuard stent is an embolic protection device based on a protective sleeve, which is constructed out of an ultra-thin polymer mesh and wrapped around the stent. The protective sleeve is comprised of a micron level fiber-knitted mesh, engineered in an optimal geometric configuration and designed for utmost flexibility while retaining strength characteristics of the fiber material.

MGuard - Coronary Applications

The Company�� MGuard Coronary with a bio-stable mesh and its MGuard Coronary with a drug-eluting mesh focuses on the treatment of coronary arterial disease. The Company�� first MGuard product, the MGuard Coronary with a bi o-stable mesh, is comprised of its mesh sleeve wrapped arou! n! d a bare-metal stent. The bio-absorbability of MGuard Coronary with a drug eluting bio-absorbable mesh is intended to improve upon the bio-absorbability of other drug-eluting stents, in light of the wide surface area of the mesh and the small diameter of the fiber.

MGuard - Carotid Applications

The Company focuses on marketing its mesh sleeve coupled with a self-expandable stent for use in carotid-applications. Expandable stent is a stent that expands without balloon dilation pressure or need of an inflation balloon. This product is under development, although the Company has temporarily delayed its development until additional funding is secured.

MGuard - Peripheral Applications

Peripheral Artery Disease, also known as peripheral vascular disease, is characterized by the accumulation of plaque in arteries in the legs, need for amputation of affected joints or even death, when untreated. Peripheral Artery Disease is treated either by trying to clear the artery of the blockage, or by implanting a stent in the affected area to push the blockage out of the way of normal blood flow.

The Company competes with Abbott Laboratories, Boston Scientific Corporation, Johnson & Johnson, Medtronic, Inc., The Sorin Group, Xtent, Inc., Cinvention AG, OrbusNeich, Biotronik SE & Co. KG, Svelte Medical Systems, Inc., Reva Inc. and Stentys SA.

Top Medical Stocks To Own For 2014: Oncolytics Biotech Inc (ONCY)

Oncolytics Biotech Inc. (Oncolytics), incorporated on April 2, 1998, is a development-stage company. The Company is focused on its research and development of REOLYSIN, which is its cancer therapeutic. REOLYSIN is developed from the reovirus. This virus has been demonstrated in tumour cells bearing an activated Ras pathway. Oncolytics is directing a clinical trial program with the focus of developing REOLYSIN as a human cancer therapeutic. The clinical program includes clinical trials, which it sponsors directly along with Third Party Clinical Trials. Third Party Clinical Trials are clinical trials that are being sponsored by other institutions. As of December 31, 2011, the United States National Cancer Institute (NCI), the University of Leeds and the Cancer Therapy & Research Center at the University of Texas Health Center in San Antonio (CTRC) were sponsoring part of its clinical trial program.

The Company�� clinical trial program has included human trials using REOLYSIN alone, and in combination with radiation and chemotherapy, and delivered via local administration and/or intravenous administration. Oncolytics uses contract toll manufacturers to produce REOLYSIN. On December 31, 2011, the Company had two wholly owned subsidiaries, Oncolytics Biotech (Barbados) Inc. (OBB) and Valens Pharma Ltd. Oncolytics Biotech (US) Inc. and Oncolytics Biotech (U.K.) are wholly owned subsidiaries of OBB.

Advisors' Opinion:
  • [By Sean Williams]

    With this in mind, I feel it'd be prudent of biotech-savvy investors to give Oncolytics Biotech (NASDAQ: ONCY  ) a closer look.

    The big risks
    I'm quite aware that there are a lot factors that'd raise a red flag with Oncolytics. Similar to Affymax, you could say that Oncolytics has put all of its eggs in one basket with its lead experimental drug, reolysin. According to Oncolytics' website, including its U.K., Canadian, and U.S. studies, reolysin as either a monotherapy or combination therapy is the basis for all 31 clinical trials! Obviously, if reolysin proves ineffective or unsafe, Oncolytics is going to be a world of hurt.

4 Stocks Under $10 Making Big Moves

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

>>5 Big Stocks to Trade for Big Gains

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

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

>>5 Sin Stocks to Protect Your Portfolio

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

Anthera Pharmaceuticals

Anthera Pharmaceuticals (ANTH) is a biopharmaceutical company focused on developing and commercializing products to treat autoimmune diseases. This stock closed up 7.4% to $3.76 in Thursday's trading session.

Thursday's Range: $3.46-$3.76

52-Week Range: $3.11-$9.36

Thursday's Volume: 224,000

Three-Month Average Volume: 109,798

>>5 Hated Earnings Stocks You Should Hate

From a technical perspective, ANTH soared higher here back above its 50-day moving average of $3.67 with above-average volume. This move also pushed shares of ANTH into breakout territory, since the stock closed just above some near-term overhead resistance at $3.75.

Traders should now look for long-biased trades in ANTH as long as it's trending above its 50-day at $3.67 or above Thursday's low of $3.46 and then once it sustains a move or close above Thursday's high of $3.76 with volume that hits near or above 109,798 shares. If we get that move soon, then ANTH will set up to re-test or possibly take out its next major overhead resistance levels at $4.25 to $4.26. Any high-volume move above those levels will then give ANTH a chance to tag its next major overhead resistance levels at $4.49 to $4.60.

NetSol Technologies

NetSol Technologies (NTWK) designs, develops, markets and exports proprietary software products to customers in the automobile finance and leasing, banking, health care and financial services industries internationally. This stock closed up 4.8% to $7.59 in Thursday's trading session.

Thursday's Range: $7.27-$7.64

52-Week Range: $5.70-$14.01

Thursday's Volume: 232,000

Three-Month Average Volume: 222,998

>>3 Hot Stocks on Traders' Radars

From a technical perspective, NTWK ripped higher here right off some near-term support at $7.20 with above-average volume. This stock has been downtrending badly for the last two months, with shares dropping sharply from its high of $12.10 to its recent low of 7.03. During that downtrend, shares of NTWK have been consistently making lower highs and lower lows, which is bearish technical price action. That move has pushed shares of NTWK into oversold territory, since is relative strength index reading recently dipped well below 30. This spike higher on Thursday could be signaling that the downside volatility for NTWK could be over in the short-term.

Traders should now look for long-biased trades in NTWK as long as it's trending above its recent lows of $7.20 or $7.03 and then once it sustains a move or close above Thursday's high of $7.64 with volume that hits near or above 222,998 shares. If we get that move soon, then NTWK will set up to re-test or possibly take out its next major overhead resistance levels a $8.71 to its 50-day moving average of $9.43.

U.S. Auto Parts Network

U.S. Auto Parts Network (PRTS) is a distributor of aftermarket auto parts and accessories. This stock closed up 3.2% to $1.93 in Thursday's trading session.

Thursday's Range: $1.78-$1.99

52-Week Range: $0.91-$3.18

Thursday's Volume: 108,000

Three-Month Average Volume: 197,578

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From a technical perspective, PRTS trended higher here right off some near-term support at $1.80 with lighter-than-average volume. This stock has been consolidating and trending sideways since pulling back off its recent high of $3.18, with shares moving between $1.60 on the downside and $2.20 on the upside. Shares of PRTS are now starting to move within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern. That breakout will hit if PRTS manages to take out some near-term overhead resistance levels at $2 to $2.20 with high volume.

Traders should now look for long-biased trades in PRTS as long as it's trending above some near-term support at $1.60 and then once it sustains a move or close above those breakout levels with volume that hits near or above 197,578 shares. If that breakout triggers soon, then PRTS will set up to re-test or possibly take out its 52-week high at $3.18.

Kratos Defense & Security Solutions

Kratos Defense & Security Solutions (KTOS) is a specialized national security technology business providing mission critical products, services and solutions for U.S. national security priorities. This stock closed up 1.2% to $8.66 in Thursday's trading session.

Thursday's Range: $8.46-$8.69

52-Week Range: $4.08-$9.16

Thursday's Volume: 257,000

Three-Month Average Volume: 532,474

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From a technical perspective, KTOS trended modestly higher here right off its 50-day moving average of $8.31 with lighter-than-average volume. This stock has been trending sideways and consolidating for the last two months, with shares moving between $7.95 on the downside and $9.16 on the upside. Shares of KTOS are now starting to push within range of triggering a major breakout trade above the upper-end of its recent range. That breakout will hit if KTOS manages to take out some near-term overhead resistance levels at $8.80 to $8.86, and then once it takes out its 52-week high at $9.16 with high volume.

Traders should now look for long-biased trades in KTOS as long as it's trending above its 50-day at $8.31 or above more near-term support at $7.95 and then once it sustains a move or close above those breakout levels with volume that hits near or above 532,474 shares. If that breakout hits soon, then KTOS will set up to enter new 52-week-high territory above $9.16, which is bullish technical price action. Some possible upside targets off that breakout are $10 to $11, or even $12.

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

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>4 Stocks Rising on Unusual Volume



>>5 Stocks Under $10 Set to Soar



>>Do You Own These Blue-Chips? Sell Them!

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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


Wednesday, November 27, 2013

SCANA: Formula for Superior Returns

Capital spending, plus regulatory support, equals rising earnings, dividends, and share prices: That's the formula for superior total returns in utility stocks, says Roger Conrad, editor of Utility Forecaster.

And it's what SCANA Corp. (SCG) is locked-in to deliver, at least to the end of the decade. The company's biggest project is constructing two 1,117-mega-watt nuclear reactors using Toshiba-Westinghouse's AP 1000 model.

Constructed on the Summer site in South Carolina, the plant will boost nuclear to 31% of SCANA's total generation, up from 19% now. And it will restore reserve margins that are expected to otherwise go negative by late decade.

Delays in securing federal permits and equipment early on in the process have pushed back startup of the first reactor to late 2017, and the second to early 2018—from an initial estimate of March 2017.

That's still well within the 18-month window set in the law that guarantees recovery of costs as incurred.

The company has also avoided cost overruns so far and the project still enjoys regulatory support, demonstrated by the rate increase granted in mid-September.

Both are huge differences from the last construction cycle, when SCANA and other builders had to wait until startup to request rate hikes to cover costs.

When the company first announced new nukes in 2007, it reduced dividend growth by half to conserve capital. Last year, it began to ramp it up again, a sure sign of growing confidence in Summer cost recovery.

Accelerating customer growth, solid results at the Georgia retail marketing unit (5% of earnings), and capital expenditure (CAPEX) recovery spurred solid third quarter results, prompting management to reaffirm projected annual growth of 3 to 6% for the next five years.

And with just $36 million in debt maturities through October 2018, faster dividend growth appears assured.

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Ironically, investors' fear of high capital spending levels and nuclear construction in particular, has pushed SCANA shares to a discount to other utilities. That's an opportunity that won't last forever. The stock is a new addition to our conservative income portfolio.

Subscribe to Conrad's Utility Investor here…

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Tuesday, November 26, 2013

Can Pfizer Continue to Outperform?

With shares of Pfizer (NYSE:PFE) trading around $32, is PFE an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Pfizer's rival Novartis is racing the former to develop a promising new type of breast cancer drug, which analysts believe could bring billions of dollars in yearly sales. The Swiss drug maker, which has prior to this kept its research program undercover, revealed Friday that its experimental pill LEE011 is primed to enter final-stage Phase III clinical trials in December. Pfizer's rival drug palbociclib is already in Phase III testing, but Novartis' rapid progress means the group could face competition rather sooner than anticipated. Both drugs are pills, and work by blocking two enzymes called cyclin dependent kinases 4 and 6.

Pfizer's rival Novartis is racing the former to develop a promising new type of breast cancer drug, which analysts believe could bring billions of dollars in yearly sales. The Swiss drug maker, which has prior to this kept its research program undercover, revealed Friday that its experimental pill LEE011 is primed to enter final-stage Phase III clinical trials in December. Pfizer's rival drug palbociclib is already in Phase III testing, but Novartis' rapid progress means the group could face competition rather sooner than anticipated. Both drugs are pills, and work by blocking two enzymes called cyclin dependent kinases 4 and 6.

T = Technicals on the Stock Chart Are Strong

Pfizer stock has been moving higher in the last couple of years. The stock is currently rising and looks set to continue this path. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Pfizer is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

PFE

(Source: Thinkorswim)

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

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Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Pfizer Options

15.59%

36%

34%

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

Put IV Skew

Call IV Skew

December Options

Flat

Average

January Options

Flat

Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a minimal amount of call and put option contracts and are leaning neutral to bullish over the next two months.

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

2013 Q3

2013 Q2

2013 Q1

2012 Q4

Earnings Growth (Y-O-Y)

-9.30%

360.50%

58.33%

358.00%

Revenue Growth (Y-O-Y)

-2.39%

-7.12%

-9.30%

-6.65%

Earnings Reaction

1.67%

0.44%

-4.46%

3.20%

Pfizer has seen increasing earnings and decreasing revenue figures over the last four quarters. From these numbers, the markets have had conflicting feelings about Pfizer’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Pfizer stock done relative to its peers, Merck (NYSE:MRK), Novartis (NYSE:NVS), Sanofi (NYSE:SNY), and sector?

Pfizer

Merck

Novartis

Sanofi

Sector

Year-to-Date Return

29.23%

20.64%

25.64%

11.46%

22.74%

Pfizer has been a relative performance leader, year-to-date.

Conclusion

Pfizer discovers and develops medicines for people and animals around the world. The company’s rival Novartis is racing the former to develop a promising new type of breast cancer drug. The stock has been trending higher in recent years and is currently rising looking set to continue. Over the last four quarters, earnings have been increasing while revenues have been decreasing, which has produced conflicting feelings among investors about recent earnings announcements. Relative to its peers and sector, Pfizer has been an excellent performance leader year-to-date. Look  for Pfizer to OUTPERFORM.

Monday, November 25, 2013

Nasdaq 4000 a prelude to run at 2000 record?

NEW YORK -- Is the Nasdaq's giddy return to 4000 for the first time since 2000 a prelude to a run at its old record high?

Back on Dec. 29, 1999, its first close north of that milestone, Nasdaq 4000 served as a launching pad for a euphoria-driven bull run. The dot-com-stock-fueled Nasdaq rose 24.9% in a 50-session span -- on top of a record 85.6% return in 1999.

That 50-day melt-up -- and the biggest bull market in history -- ended March 10, 2000, the day the Nasdaq closed at its all-time high of 5048.62.

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In early trading Monday, the Nasdaq topped that big round number again, climbing as high as 4007.09, hitting its highest level since Sept. 7, 2000, before pulling back below the key milestone. Will 4000 prove magical again for the boom-and-bust Nasdaq? Is the old record, still a 21% climb away, finally within striking distance?

Sure the Nasdaq is generating excitement again, thanks to stellar gains from names like electric-car maker Tesla and online entertainment provider Netflix, 1990's throwbacks Amazon.com and Yahoo, and social media players like Facebook.

But the level of exuberance today, while on the rise as witnessed by the Nasdaq's 32% gain this year and Twitter's 73% gain on its first day of trading after its IPO, is no where near the irrational pitch of the go-go 1990s, argues Drew Nordlicht, managing director at wealth management firm HighTower. And that, he says, will slow the climb back to 5048.62.

"The euphoria," says Nordlicht, "just isn't there on a mass scale today."

In 1999 investors were as smitten with tech stocks as the Dutch were with tulip bulbs in the 17th century. Time magazine named Amazon.com CEO Jeff Bezos its "Person of the Year. The Y2K computer bug was the worry du jour. And chip maker Qualcomm rose 2,619%, making it the No. 1 performing Nasdaq stock.

That doesn't mean the Nasdaq won't make a new high eventually, just not as quickly as it did after hurdling 4000 back in early 2000.

Other reasons why the Nasdaq will have a tougher time breaking out to a new record:

* Tepid growth. An economy growing at a "sub-par rate" of below 3% will act as a headwind, says Dan Veru, chief investment officer at Palisade Capital Group. In a market where investors are trying to pinpoint winners, it will take more than just a handful of tech names growing at super-fast rates or those with high growth potential to goose the Nasdaq.

Unlike 1999, the rally has been fueled by companies like Google that have real business models, fresh social media innovators like LinkedIn, and an investor base that will only snap up a stock like Facebook once the company can prove it can bring in revenue.

"This time the market is differentiating between business models that are working and those that are not," says Veru.

* Main Street apathy. Mom and pops who got burned buying dot-com stocks in 2000 and who were hurt by the botched Facebook IPO are not "all in" like they were in 1999. "The public is looking at the market more warily and they are not making big commitments of cash to stocks," says Veru.

* Policy drag. The Federal Reserve will eventually start to dial back its bond-buying program, which will act as a headwind for all stocks, says Veru. Add the fact that current government policy is hurting growth and another 1990's-tech-stock mania seems unlikely.

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Indeed, with tech stocks flying high and the broader market at record highs, there are less bargain-priced stocks to buy, which could also dampen buying, says Bill Mann, chief investment officer at Motley Fool Asset Management.

"There's almost no companies out there that I find attractive from a valuation standpoint," Mann says.

Saturday, November 23, 2013

Costa Concordia Salvage Highlights Higher Risks to Maritime Insurers

Ships are getting bigger and bigger. Both cruise ships and cargo ships are constantly pushing the envelope of what’s considered prudent and possible on the high seas, but some of that daring is coming home to roost for maritime insurers. As the ships grow ever larger, so do potential losses for both insurers and reinsurers—something investors might want to keep in mind.

A case in point is the wreck and subsequent salvage operation that raised the Costa Concordia from the bottom of the sea off the coast of the Italian island of Giglio. The final tally is still not in, but it’s expected to be the most expensive insured maritime loss ever for the 30 or more insurers who had a piece of the action and top $1 billion. According to Allianz, overall losses may reach up to $1.7 billion, with $900 million of that chalked up to the salvage operation.

“The issue of salvage has been highlighted by both the Costa Concordia and the [container ship] MV Rena losses, which have provided complex salvage issues in the recovery of the vessels and, in the case of the Rena, the cargo on board,” according to Jon Guy, spokesman for the International Union of Marine Insurance. “Naturally the bigger the vessels, the more difficult the salvage operation.”

A recent Lloyd’s of London report, “The Challenges and Implications of Removing Shipwrecks in the 21st Century,” detailed a number of the reasons the cost of salvage is running so high: “a massive vessel wrecked at a difficult location, rocky ground above deeper water, combined with environmental concerns leading the authorities to require a complex, heavily engineered solution.”

 “Removal of [the] wreck following a maritime casualty has become a very costly problem for liability underwriters over the last decade,” according to Guy. “The International Group of Protection & Indemnity (P&I) Clubs representing over 90% of the tonnage underwritten worldwide has taken the brunt of this. However, the impact has also been felt by commercial underwriters as reinsurers of the International Group and other P&I insurers, as they ultimately pay the lion’s share of wreck claims for the major casualties.”

The 1989 loss of the Exxon Valdez, in contrast to the Costa Concordia, only cost insurers $500 million. The third most expensive insured loss in maritime history, which Guy referred to, was the sinking of the container ship MV Rena off the New Zealand coast in 2011. That also involved a massive oil spill, and was the target of a $300 million salvage operation by owners and insurers two years after its loss as they decided to remove the ship’s accommodation block from where the hulk had come to rest on the Astrolabe Reef.

The magnitude of the Costa Concordia loss is due to the size of the ship and the potential for environmental damage—the former requiring extraordinary measures for salvage, and the latter partly because when the Costa Concordia sank in January of 2012, it did so in an environmentally sensitive area.

At more than twice the size of the Titanic, the Costa Concordia was required by Italian law to be raised and hauled away in one piece to protect the environment—something that, with a ship that size, is risky business in and of itself. There was only one option: a process known as parbuckling, which was carried out just this past September and took 19 hours.

First on the agenda was the removal of some 500,000 gallons of fuel. That was delayed, as were other stages of the salvage operation, by rough seas and bad weather—factors that can compound the costs. Then it took a long time to prepare the operation that would raise the ship from its resting place in the shallower waters off the island’s coast, and in the meantime the ship began to collapse in on itself from sheer weight—something that would have raised environmental costs dramatically had it continued.

When the salvage operation itself, finally took place, the ship was rolled over onto a false bottom that is actually a stabilizing platform. It must remain on the platform for some time, where it will be stabilized for eventual flotation and then towed to its final destination. While it’s there, strand jacks are used to tighten cables that are attached to caissons—watertight platforms—so that the ship can finally be pulled out to sea. That too will be a time-consuming process.

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In the case of cargo ships, of course, the increase in vessel size means that not only are insurers dealing with hazards from large and costly salvage operations in case of trouble, but also that far more cargo is at risk of loss. In fact, Maersk has a new ship, the Triple E, which can hold 18,000 TEU (twenty-foot equivalent units, the standard measure of cargo volume—think 18,000 of the sort of 20-foot containers you see in railyards or stacked up at ports, or, if you prefer, consider that that many containers can hold 36,000 cars). There is also the complication of whether the cargo itself presents an additional hazard, and whether it can be recovered.

Guy said of the trend, “One of the additional concerns for the insurance market is the rising aggregation risks which are apparent with the new breed of large container vessels. With the new vessels able to take 18,000 TEU the value of the cargo they are potentially able to carry will increase significantly and the market needs to look at the potential exposures this creates in the case of a loss and the ability to remove the cargo from and recover the vessel.”

With 163 cargo ships currently afloat with a capacity of more than 10,000 TEU each, and 120 more on the way, including 20 Maersk Triple Es, the risks are not going away—and neither is the cost.

 

Friday, November 22, 2013

Portability election emerges as new locus of estate planning

Though the estate tax exemption has been set at $5.25 million, a new area of estate planning is emerging for clients: portability election.

Congress made the election of portability of a deceased spouse's unused exclusion amount permanent as part of the American Taxpayer Relief Act of 2012. Right now, that amount is $5.25 million per person or $10.5 million for a married couple.

In short, if one spouse dies in 2013 after making taxable transfers of $3 million and has no taxable estate, his leftover $2.25 million in exclusion can pass to his surviving spouse, who will have $7.5 million in exclusions to use for lifetime gifts or for transfers when she dies. The executor must make the portability election in a timely manner after the first spouse dies on the estate tax return.

With the exclusion being set at $5.25 million per person, it's easy for affluent clients whose estates don't quite hit that level to write off creating estate plans or building trusts.

But even those in-between clients benefit from establishing trusts in select scenarios, noted Samuel A. Donaldson, a law professor at Georgia State University. He was a speaker Thursday at the National Association of Estate Planners & Councils' annual conference in Las Vegas.

“The question for the client with a combined $4 million estate is now, do you need a trust? In many situations, an outright transfer is perfectly fine,” Mr. Donaldson said.

“But you can do a trust for old-fashioned nontax reasons — you use a trust where there is an absence of trust,” he added.

Indeed, smaller estates may still need protection from creditors or the client may fear that the surviving spouse will be unwilling or unable to manage the assets — or there may be family members who are spendthrifts. In those cases, a trust — even if the estate is small enough to escape estate taxes — may still be warranted, Mr. Donaldson said.

For married couples who have an estate that's bigger than the $5.25 million amount but smaller than the combined exclusion of $10.5 million, some situations may call for a credit shelter trust.

For example, a 45-year-old couple has an $8 million estate and seeks planning. Flexibility in the trust should come first, as the couple still has a long and uncertain future ahead — namely, nobody knows who will die first, when it will happen and how much the trust assets will appreciate in the future.

Portability might make sense in the future, but the credit shelter trust might also make sense to protect the descendants of the spouse who dies first. Further, without a credit shelter trust, the surviving spouse could remarry and the new spouse may end up in line to receive the entirety of the estate, Mr. Donaldson explained.

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A provision in the estate planning document can allow for the option of a credit shelter trust for any amount of the estate that the surviving spouse will disclaim in the future. “You don't have to make the decision until the death of the first spouse,” Mr. Donaldson said.

Finally, for the largest clients, strategies such as the zeroed-out wealth transfer and the transfer of partnership interests to a grantor trust can mitigate the effect of estate and other taxes.

One thing worth considering is whether states will recognize portability elections with respect to state-level estate taxes and how that might affect the estate plan itself.

“To my knowledge, there are maybe one or two states that recognize portability elections with respect to the state estate tax,” Mr. Donaldson said. “Most are saying 'no, we'll take that revenue for free.'”

Sunday, November 17, 2013

7 Stocks Moving on Unusual Volume

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

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

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

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

Kraton Performance Polymers (KRA)

This company is a producer of styrenic block copolymers and other engineered polymers. This stock closed up 5.3% to $20.76 in Wednesday's trading session.

Wednesday's Volume: 605,000

Three-Month Average Volume: 269,288 Volume % Change: 125% From a technical perspective, KRA ripped higher here back above its 50-day moving average of $19.96 with above-average volume. This move also pushed shares of KRA into breakout territory, since the stock took out some near-term overhead resistance at $20.07. This move is starting to push shares of KRA within range of triggering another big breakout trade. That trade will hit if KRA manages to take out Wednesday's high of $21.18 and then once it clears more resistance at $22.16 to $23.17 with high volume. Traders should now look for long-biased trades in KRA as long as it's trending above its 50-day at $19.96 or above Wednesday's low of $19.63, and then once it sustains a move or close above those breakout levels with volume that hits near or above 269,288 shares. If that breakout hits soon, then KRA will set up to re-test or possibly take out its next major overhead resistance levels at $25 to $27.

Net 1 Ueps Technologies (UEPS)

This company is a provider of payment solutions and transaction processing services across multiple industries. This stock closed up 7.5% to $11.92 in Wednesday's trading session.

Wednesday's Volume: 364,000

Three-Month Average Volume: 157,230 Volume % Change: 133% From a technical perspective, UEPS ripped sharply higher here right above some near-term support at $11 with strong upside volume. This stock recently gapped up sharply from $7 to $11 with strong upside volume. Following that move, shares of UEPS have trended sideways inside of a consolidation chart pattern. This move on Wednesday has now pushed UEPS into breakout territory, since the stock took out the upper-end of its sideways range at $11.63. Traders should now look for long-biased trades in UEPS as long as it's trending above support at $11, and then once it sustains a move or close above Wednesday's high of $12.18 with volume that hits near or above 157,230 shares. If we get that move soon, then UEPS will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that move are $14 to $15.

Theravance (THRX)

This is a biopharmaceutical company with a pipeline of internally discovered product candidates and strategic collaborations with pharmaceutical companies. This stock closed up 2.5% at $38.74 in Wednesday's trading session.

Wednesday's Volume: 1.69 million

Three-Month Average Volume: 916,688 Volume % Change: 140% From a technical perspective, shares of THRX jumped modestly higher here back above its 50-day moving average of $37.88 with strong upside volume. This stock has been trending sideways for the last month and change, with shares moving between $39.73 on the upside and $34.76 on the downside. Shares of THRX are now starting to move within range of triggering a breakout trade above the upper-end of its recent sideways trading chart pattern. That breakout will hit if THRX manages to take out Wednesday's high of $39.28 and then once it clears more resistance at $39.73 with high volume. Traders should now look for long-biased trades in THRX as long as it's trending above its 50-day at $37.88 or above $36, and then once it sustains a move or close above those breakout levels with volume that hits near or above 916,688 shares. If that breakout hits soon, then THRX will set up to re-test or possibly take out its 52-week high at $42.96.

Treehouse Foods (THS)

This company is a food manufacturer servicing mainly the retail grocery and foodservice distribution channels. This stock closed up 1.3% to $68.30 in Wednesday's trading session.

Wednesday's Volume: 411,000

Three-Month Average Volume: 138,234 Volume % Change: 196% From a technical perspective, THS trended modestly higher here with above-average volume. This stock recently downtrended badly from its August high of $74.54 to its low of $63.37. During that move, shares of THS were consistently making lower highs and lower lows, which is bearish technical price action. Since hitting that low of $63.37, shares of THS have rebounded sharply and it's now trending within range of triggering a near-term breakout trade. That trade will hit if THS manages to take out some near-term overhead resistance at $68.62 to its 50-day moving average of $68.97 with high volume. Traders should now look for long-biased trades in THS as long as it's trending above some key near-term support at $67, and then once it sustains a move or close above those breakout levels with volume that hits near or above 138,234 shares. If that breakout triggers soon, then THS will set up to re-test or possibly take out its next major overhead resistance levels at $72 to $74.

Gogo (GOGO)

This company provides a suite of connectivity solutions and other services, including Passenger Connectivity, Passenger Entertainment, In-Flight Portal as well as Operations-Oriented Communications Services. This stock closed up 10.7% at $13.57 in Wednesday's trading session.

Wednesday's Volume: 3.02 million

Three-Month Average Volume: 759,941 Volume % Change: 432% From a technical perspective, GOGO bounced sharply higher here right above its 50-day moving average of $12.01 with heavy upside volume. This stock has been uptrending strong for the last month, with shares moving higher from its low of $9.71 to its intraday high of $13.75. During that move, shares of GOGO have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GOGO within range of triggering a big breakout trade. That trade will hit if GOGO manages to take out some near-term overhead resistance levels at $13.89 to $14.35 with high volume. Traders should now look for long-biased trades in GOGO as long as it's trending above $13 or $12.50, and then once it sustains a move or close above those breakout levels with volume that this near or above 759,941 shares. If that breakout hits soon, then GOGO will set up to re-test or possibly take out its next major overhead resistance levels at $15.50 to its all-time high at $17.

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British American Tobacco (BTI)

This is a holding company that owns, directly or indirectly investments in the numerous companies constituting the British American Tobacco Group of companies. This stock closed up 0.66% at $105.41 in Wednesday's trading session.

Wednesday's Volume: 2.37 million

Three-Month Average Volume: 201,433 Volume % Change: 1122% From a technical perspective, BTI trended modestly higher here right off its 50-day moving average of $104.64 with heavy upside volume. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $100.83 to its intraday high of $105.53. During that move, shares of BTI have been consistently making higher lows and higher highs, which is bullish technical price action. Traders should now look for long-biased trades in BTI as long as it's trending above its 200-day at $104.13, and then once it sustains a move or close above Wednesday's high of $105.53 to more resistance at $106 with volume that hits near or above 201,433 shares. If we get that move soon, then BTI will set up to re-test or possibly take out its next major overhead resistance levels at $107.53 to $110.

Xoom (XOOM)

This company provides online consumer-to-consumer international money transfers in close to 30 countries. The company's customers use its website to send money to friends and families in these countries. This stock closed up 5.5% at $32.38 in Wednesday's trading session.

Wednesday's Volume: 3.96 million

Three-Month Average Volume: 265,931 Volume % Change: 1201% From a technical perspective, shares of XOOM gapped sharply higher here and broke out above some near-term overhead resistance at $32 with heavy upside volume. This stock recently pulled back sharply from its July high of $36.46 to its recent low of $26.34. It looks like the downside volatility for XOOM is over in the short-term now that this stock has trended back above its 50-day with heavy upside volume flows. Traders should now look for long-biased trades in XOOM as long as it's trending above $30, and then once it sustains a move or close above Wednesday's high at $33.46 with volume that's near or above 265,931 shares. If we get that move soon, then XOOM will set up to re-test or possibly take out its 52-week high at $36.46. -- Written by Roberto Pedone in Delafield, Wis. RELATED LINKS: >>5 Tech Stocks Spiking on Big Volume >>5 Stocks Setting Up to Break Out >>4 Red-Flag Stocks to Sell This Fall Follow Stockpickr on Twitter and become a fan on Facebook. At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Saturday, November 16, 2013

The Only Five Warren Buffett Stock Purchases That Matter

Berkshire Hathaway Inc. (NYSE: BRK-B) and Warren Buffett disclosed their full equity holdings this week. The first thing we noticed was that there was a total equity value of $92.035 billion at the end of September, versus $89.03 billion at the end of June. What stood out was that there were really only about five transactions that really mattered . Still, they offer great insight and opportunity.

24/7 Wall St. wanted to identify the most important Buffett transactions of the past quarter. We wanted to see what the expected value is ahead for individual investors who may want to copy the Oracle of Omaha’s strategy. We also wanted to get inside Mr. Buffett’s head to see what he was thinking and how our readers can benefit.

The most important change was one we have called for endlessly, and we joked that Buffett finally took our suggestion. This was a new stake of Exxon Mobil Corp. (NYSE: XOM) with almost 40.1 million shares. We just outlined the 10 reasons he took such a big stake, and we would say that it seems likely that Team Buffett would only grow this stake through time. Shares were up yet another 1% on Friday trading to above $94.00, and the consensus analyst price target is $95.54. Note that some analysts see it rising to well over $100 in the year, or years, ahead. Buffett even made a statement in favor of Exxon, because he substantially lowered his stake in ConocoPhillips.

General Electric Co. (NYSE: GE) appears as a no-change on the portfolio at a mere 588,900 shares. What readers need to keep in mind is that Buffett recently took delivery of 12 million or so shares tied to the warrants from the preferred investment that he secured during the recession. GE is now spinning off its retail finance unit in an IPO in 2014, and the company aims to be evaluated as an industrial conglomerate rather than as an industrial company with a huge retail bank associated with it. GE shares were up almost 1% in mid-Friday trading at a new post-recession high. We think that Buffett will grow this stake, particularly if the value adjustment transition looks more likely.

Wells Fargo & Co. (NYSE WFC) is one stake that just continues to grow and grow. And it has grown yet again. After Friday’s mid-day gain of 1% to $34.50, this stake is now the largest by far and worth a hair over $20 billion. This means that Buffett is willing to have 21% of his entire equity holdings in one giant banking stock. Buffett obviously views this as the go-to mortgage play in America. He also likes that Wells Fargo does not have extensive trading operations that put the bank at as much perceived risk. The consensus price target from analysts is $46.00, which would be an all-time high. Buffett himself probably thinks Wells Fargo is worth even more, plus he gets the 2.8% dividend to boot that is actually a much higher yield for him if you tally up his average cost.

U.S. Bancorp (NYSE: USB) is nowhere near as large of a stake as Wells Fargo, but Warren Buffett keeps growing this stake as well. Its higher-end customer has to be attractive to Buffett. The stake grew to 79.11 million shares, versus a prior stake of 78.277 million shares. It had also been raised from 61.458 million shares prior to that. This stock was not reacting positively and was actually down $0.10 at $38.18 in mid-Friday trading. Still, its shares did briefly hit a new high of $38.39 on Friday. The consensus price target was $39.97 on last look, and new investors are getting a 2.4% yield here, even at these high prices.

DaVita HealthCare Partners Inc. (NYSE: DVA) was the last of most important stakes that was grown in the Berkshire Hathaway portfolio. This was officially listed as 31.446 million shares, and that was higher last quarter, but more recent filings show that the stake is now even larger. Buffett likes owning a piece of the leader in kidney dialysis centers, and the company even entered a standstill agreement whereby Berkshire Hathaway is not to take more than a 25% stake. That stake is now about 17%, and we would expect that to only grow ahead. Shares were at $58.90 mid-Friday, against a 52-week range of $52.23 to $65.67, and versus an analyst consensus price target of $61.42.

Friday, November 15, 2013

How to Prepare for "The Mother of All Bubbles"

From the Editor: No fewer than 165 stocks on the major exchanges hit new 52-week highs yesterday, which is all the more reason to take notes today... Shah's been identifying bubbles for decades, ever since his hedge fund days. And now that he uncovers them for individual investors, his readers know firsthand that "bubble watching" is more than a wealth protection strategy.

They made 218% the last time Shah prepared them. And they made 371% and 455% the time before that. Those bubbles were little, too, compared to this one...

There are lots of reasons to be fully invested in the stock market. And that's why it's so important right now to keep an eye on all the bubbles.

They're everywhere. And we have plenty of reasons to fear any number of them bursting.

So let's look at these bubbles now, while you still have time to prepare. And I'm not just talking "capital preservation" here...

You can make a killing when a bubble bursts, especially the one we'll start with today.

It's the biggest of the big bubbles. And it could start hissing at any moment.

The hissing will be loud, too...

"The Mother of All Bubbles"

It may not be classified as a bubble, but it is. We know what bubble-bursting effects it has because it burst in 2008 and shook the life out of global financial markets.

I'm talking about "interconnectedness."

Manifest and growing interconnectedness creates its own bubble. The bubble enlarges as masses of banks and financial institutions and private investors end up on the same side of the same bets. The bubble bursts when they want out, when they all head for the exit doors at the same time.

In 2008, the bubble, on the outside, stretched around mortgages, subprime and prime mortgages. But on the inside, the massively inflating mortgage bubble resulted from a desperate clamor by investors of all stripes. The hunt for yield took investors further and farther out on the risk spectrum.

Low interest rates were the conduits through which hot air filled the mortgage market balloon.

Why is that important now?

Because the same-as-before manipulation of interest rates by governments and central banks has forced investors into riskier and riskier assets in the hunt for yield across the global low-rate environment, again.

In order to maximize low-yielding investments in bonds, namely sovereign and corporate bonds, collectively far and away the largest asset class on the planet, investors leverage themselves by borrowing to increase exposure to magnify their returns. It is this debt surge that underlies the interconnectedness pumping up the interconnectedness bubble.

As long as interest rates are low and yield curves around the globe are fairly steep, which means short-term rates are a lot lower than long-term rates, the leverage that investors have employed in the form of short-term borrowings to pay for higher-yielding longer-term bonds will work in their favor.

But if short-term rates rise faster than long-term rates...

The "Hissing" Will Be Loud

It's bad enough if long-term rates rise, knocking down the price of existing bonds that offer lower yields, such that investors holding those long-term bonds have mark-to-market capital losses on their books. Investors, like banks, have to contend with reserve ratios, and losses on their portfolios will cause them to have to raise capital or deleverage. Still, they don't have to sell the bonds and actually take capital losses.

The Federal Reserve is the best example of this.

It is sitting on over $3 trillion in bonds and has an approximate loss on its portfolio of some $200 billion as rates have ticked higher. But it doesn't have to mark-to-market its portfolio (like banks do), and it doesn't have to sell its bonds, ever.

The hissing sound of the debt interconnectedness bubble deflating will start to be heard if short rates start to rise, and it will be heard loudly.

Mass panic could ensue if investors' cost of carrying their inventory of relatively low-yielding longer-term bonds rises.

Because most institutional investors and all banks borrow short term on a huge scale, if short-term interest rates they have to pay start rising and they keep having to rollover and borrow more when their short-term borrowings mature in days, weeks, and months, they will start losing the "spread" on the investment they bet on. If at the same time long-term rates move up (causing capital losses), then the "trade" becomes increasingly unprofitable, and to unwind positions, investors will sell their long inventory of bonds before their capital losses mount.

Selling, on a massive scale, would create a global panic as leveraged investors everywhere rush for the exit doors.

It's the global interconnected of the same debt bubble caused by low rates that worries central bankers and governments.

And rates are starting to rise.

But, so far, central banks have kept a lid on short rates. Long rates can rise, and although they are causing many problems already, a steady and measured rise in long rates can be absorbed by most economies without dire consequences.

However, if long rates jump precipitously or if short-term rates rise unexpectedly and central bankers can't keep a lid on them, look out!

What to Watch

Investors have to watch the yield curve and know at what rates the long end of the curve and the short end of the curve are rising, both in absolute terms and relative to each other.

Rising rates will cause massive problems, economic disruptions, and losses everywhere, in some places and on some assets more than others. We'll cover all of those scenarios in this series.

But as far as interconnectedness and the bubble brewing in global debt interconnectedness, investors can hedge their exposure to rising interest rates by buying inverse bond ETFs, by buying puts on debt-denominated ETFs, and by managing their own bond portfolios by deleveraging themselves and keeping portfolios short term in duration.

For investors seeking to profit from the debt interconnectedness bubble bursting, taking longer-term positions, meaning buying inverse ETF instruments and ETFs that will rise if bond prices fall, is much better than buying options, which if you don't get the timing right will expire and have to be continually rolled over.

But don't worry...

I'll be covering this situation for you right here in Money Morning. And I'll be suggesting specific positions you can take to either hedge yourself or play the bursting of these bubbles for pure profit.

Stay tuned...

Wednesday, November 13, 2013

The Time For Retail Real Estate Is Now

10 Best Cheap Stocks To Invest In Right Now

While commercial real estate has bounced back nicely since the depths of the recession- broad measures of the sector like the iShares Dow Jones US Real Estate ETF (NYSE:IYR) have put up quite impressive returns- the retail sub-sector hasn't fared as well. Driven by cost-cutting consumers and high unemployment, firms operating the shopping and strip mall space have been left behind. However, various pieces of sector data are pointing in the positive direction, things may be finally turning the corner for the retail REITs.

Rising Sales and Slowed Construction

After getting trounced during The Great Recession, the retail real estate space spent much of the last two years floundering. However, things are finally looking up for the market.

First, sales of strip malls, community power centers and other shopping destinations are beginning to grind forward. Nearly, $10 billion worth of retail property investment sales occurred during the first quarter of 2013. That's a significant increase compared to recent quarters. This includes a 30% year-over-year increase in the sales of strip malls. Perhaps more importantly, secondary markets in hard hit areas- like Florida, Phoenix Denver- have begun to see renewed sales activity.

Secondly, after a torrid pace of new retail outlet construction, activity in the sector has slowed to a crawl. According to consultancy PricewaterhouseCoopers (PwC), retail remains still a speculative bet for those firms providing financing. As such, the only projects that are currently getting built are those that were started before the recession.

These increasing sales, along with a constricted construction environment is helping boost rents and returns for property owners. Recent data from real estate services giant CBRE Group (NYSE:CBG) showed that the U.S. retail market continued to improve in the second quarter as the national availability rate decreased a year-over-year basis. Overall, that key metric of available retail real estate fell to just 12.3%. That's helped shopping mall, power centers and freestanding retail store owners realize one of the best annualized total returns of all other property types on an unlevered basis during the quarter.

Yet, there's still time for regular investors to cash in on the trend.

Buying A Power Center

Given the recent bullishness in the sector, it may be time for investors to give the retail real estate sector a go. For investors looking for a broad way to add a swath of retail commercial real estate to a portfolio, the iShares FTSE NAREIT Retail ETF (NYSE:RTL) could be a good bet. The ETF tracks 33 retail REIT heavyweights including Simon Property Group (NYSE:SPG) and Kimco Realty Corporation (NYSE: KIM). The fund yields a healthy 3.44% and only costs 0.48% in expenses. However, the main drawback to the fund is that it hardly trades. For a retail REIT-oriented portfolio, the best bets are in individual choices.

Two of the best bets could be triple-net stars National Retail Properties (NYSE:NNN) and Realty Income (NYSE:O). At their core, a net lease requires the tenant to pay not just rent but also some or all of the property expenses that normally would be paid by the property owner. Both O and NNN have used this to their advantage across their enormous retail property portfolios. That's resulted in some high dividend growth as well as high current yields. National Retail Properties currently yields 5.2%, while monthly dividend payer Realty Income yields 5.6%.

Another prime pick could be DDR (NYSE:DDR). The firm- formally known as Developers Diversified Realty- was one of the largest power center operators in the country, with assets valued at 49 billion in 2009. However, as the recession took hold, DDR faced hard times on the refinancing front and saw its stock price plummet down about $2. Since that time, the firm has refocused by selling non-core properties, paid down debt and has risen from the ashes. Shares of DDR have performed well over the last few years and shareholders have been rewarded with dividends. DDR currently yields 3.48%.

The Bottom Line

As commercial real estate rebounded from the depths of Great Recession, the retail sub-sector was left behind. However, the sector is now showing some real signs of life. For investors, it could finally be time to bet on the beleaguered strip mall and power center operators. The previous firms- along Taubman Centers (TCO) –make ideal ways to play retail real estate's rebound.

Disclosure - At the time of writing, the author did not own shares of any company mentioned in this article.

Tuesday, November 12, 2013

Why the Rally May Take a Break

Each Monday, MoneyBeat publishes a short column in the WSJ print edition highlighting a statistic getting traction in the markets.  This week's "Big Number" is 78%, the percentage of the bull-market rally that has taken place during earnings season.

The stock market's relentless push higher could be due for a pause.

The S&P 500 has registered five straight weeks of gains and is up 4% during that period, a stretch that has coincided with third-quarter earnings season.

That also corresponds with a trend that has driven the S&P 500's rally this year and the bull market that began in March 2009: The pace of the market's increases has surged during corporate reporting periods and has slowed during so-called earnings off-seasons.

Since the second quarter of 2009, 78% of the rally has occurred during earnings seasons, according to Jeffrey Kleintop, chief market strategist at LPL Financial. He defines these reporting periods as the two weeks prior to Alcoa Inc.(AA)'s quarterly reports and then the four weeks afterward.

Best Performing Stocks To Invest In Right Now

Consider this year's action: The S&P 500 jumped 4.6% and 7.5%, respectively, in the first- and second-quarter earnings seasons, according to Mr. Kleintop's calculations. But in the weeks this year when a bulk of companies weren't reporting results, the stock index fell 1.8% and 0.3%, he says.

Overall, about three-quarters of the S&P 500's increase this year has taken place during earning season.

"Corporate profits are still the lifeblood of the stock market," Mr. Kleintop told MoneyBeat.

Now that the third-quarter reporting period has come to an end, the worry is the recent trend will continue. That means it might be tough for the market to keep rising at such a rapid rate.

"While we expect stocks may continue to provide gains for investors, the pace of those gains is likely to slow and volatility may pick up," Mr. Kleintop says.

Monday, November 11, 2013

Priceline gets pricier: Stock above $1,100

priceline.com stock

Click the stock to track shares of Priceline.com.

NEW YORK (CNNMoney) The most expensive stock in the S&P 500 just got even pricier. Shares of Priceline.com soared again Monday, rising to an all-time high above $1,100.

In September, Priceline (PCLN, Fortune 500) became the first S&P 500 company to hit a four-digit price. Google (GOOG, Fortune 500) became the second to achieve the milestone last month. But Google is about 10% below Priceline newest peak of $1,109.50.

Though Priceline is up nearly 80% so far this year, analysts remain bullish. The average price target on Wall Street stands above $1,200 per share, up another 10% from current levels.

While Priceline shares are not cheap, they're not terribly overvalued either for being the leader in online travel. Shares are trading around 21 times 2014 earnings estimates. That makes it more expensive than rival Expedia (EXPE), but the stock is trading at a discount compared to Orbitz (OWW) and TripAdvisor (TRIP).

Priceline's profits have been growing more than 50% on average for the past five years, with revenue increasing 30% on average. The stock has booked a fairly remarkable run-up during the past five years, too. Shares are up more than 2,300% since their October 2008 low .

Priceline.com reported strong third-quarter earnings last week thanks to accelerating travel bookings growth for its flagship Priceline.com site. The company also has a booming international presence. Its Bookings.com site is an online travel leader in Europe. The company also owns Asian travel site Agoda.com.

For 2013, analysts expect the company's profits and sales to climb 30% from a year ago. And they are predicting another 23% increase in earnings and revenue in 2014.

Priceline is a bit of an unlikely stock to win the race to $1,000 a share -- despite being so well-known for its commercials featuring Star Trek's William Shatner as The Negotiator.

Last year, many investors thought Apple (AAPL, Fortune 500) would be the first stock in the S&P 500 to hit $1,000. Shares rose above $700 in September 2012 before pulling back. But now, Mastercard (MA, Fortune 500), The Washington Post Co (WPO). and Chipotle (CMG) are all closer to $1,000 than Apple is. To top of page