| Chemocentryx (CCXI) | Bvf Part L P Il | BO | 325,635 | 1,936,126 | | Golub Cap (GBDC) | Golub D | CEO,DIR,BO | 31,504 | 533,993 | | Aircastle (AYR) |
NEW YORK (TheStreet) -- Rite Aid (RAD) shares were up an impressive 24% as of 3:35 p.m. EST, due in large part to unexpectedly strong second-quarter figures. During the second quarter ended Aug. 31, the drugstore chain reported net income of $32.8 million, up $71.6 million on the year-ago quarter. This marks the fourth consecutive quarter in the black. Same-store sales grew 1% across the 4,600-strong store network. In a conference call to investors, Rite Aid CEO John Standley credited generic medications adding to pharmacy gross margins and strong expense control as key drivers for the positive balance sheet. Rite Aid revised its 2014 fiscal guidance in light of its better-than-expected second-quarter earnings. It is anticipated adjusted EBITDA will be $1.24 to $1.3 billion, net income $182 to $268 million, and sales $25.1 to $25.3 billion for 2014. "We believe we have an operational game plan that will succeed in meeting the unique needs of our customers while positing Rite Aid for long-term success," said Kenneth Martindale, Rite Aid President and Chief Operating Officer, during the call. Major competitors Walgreens (WAG) and CVS Caremark (CVS) will report quarterly earnings in October and November respectively. Thus far, 102.37 million shares of Rite Aid changed hands compared to its average daily volume of 15.9 million shares. Overall, Rite Aid is leading the S&P 500 which is down 0.16%. TheStreet Ratings team rates Rite Aid as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate Rite Aid (RAD) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: Powered by its strong earnings growth of 400% and other important driving factors, this stock has surged by 170.67% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year. Rite Aid reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, Rite Aid turned its bottom line around by earning 12 cents vs. -42 cents in the prior year. This year, the market expects an improvement in earnings (14 cents vs. 12 cents). Regardless of the drop in revenue, the company managed to outperform against the industry average of 3.1%. Since the same quarter one year prior, revenues slightly dropped by 2.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share. The gross profit margin for Rite Aid is currently lower than what is desirable, coming in at 30.55%. Regardless of Rite Aid's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.42% trails the industry average. Net operating cash flow has decreased to $184.45 million or 49.27% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower. You can view the full analysis from the report here: RAD Ratings Report Written by Keris Alison Lahiff.
Last year, household income remained effectively unchanged, according to data released this week by the U.S. Census Bureau. This is despite the fact that the U.S. added nearly 2.2 million jobs in 2012. "The big story is that everything was stagnant over the year" said Economic Policy Institute’s Elise Gould. "We're stagnant, and continue to be in bad place." While the economy continues to struggle, residents in the wealthiest states continued to make far more than in the poorest. In 2012, Maryland remained the richest state in the country, with a median household income of $71,221. Mississippi was again the poorest, with an income of $37,095 — nearly half that of Maryland's. Click here to see the richest states Click here to see the poorest states Despite the addition of jobs nationwide, median incomes remained stagnant in most states and were still generally below their 2008 levels, adjusted for inflation. Sheldon Danziger, president of the Russell Sage Foundation, explained that this has been the nature of the recovery. "We have an economy that continues to grow, with most of the gains going to the economic elite. I don't see any bright prospects for the median worker, much less the poor." States with lower median incomes generally had much higher rates of poverty than the national rate. All of the 10 states with the lowest median income in 2012 also had among the highest poverty rates in the country. While 15.9% of Americans fell below the poverty line in 2012, nearly one in four Mississippians did. Employment is one of the biggest factors affecting income. In some states with lower unemployment, a higher share of the households had steady income, which bolsters the state's median. In many of the highest-income states, like New Hampshire, Minnesota and Hawaii, unemployment in 2012 was less than 6%, compared to a national rate of 8.1%. Elise Gould, Director of Health Policy for Economic Policy Institute, explained that unemployment rates can have a significant effect on a state’s household income. "When we're talking about average families and poor families, the vast majority of income comes from wages. So it's about jobs." Gould cautioned, however, that unemployment rates do not tell the full story. Unemployment rates, for example, ignore those people who have given up looking for work or accept part-time work. According to the Bureau of Labor Statistics, while 8.1% of American workers were unemployed in 2012, 14.7% were underemployed, meaning they wanted to work full time but could not. This was an increase from roughly 10% in 2008. The types of jobs available in each state also affect income. A review of Census Bureau industry composition data shows that people in most of the states with a higher median income were often more likely to be employed in information, finance, professional and other positions that tend to pay higher salaries. Maryland, the wealthiest state in the country, had the highest percentage of workers in professional, scientific and management positions. At the same time, many of the low-income states had smaller percentages of these professional occupations and higher rates of employment in retail, manufacturing and transportation. The high proportion of manufacturing jobs in low-income states might be surprising, but, explained Danziger, the makeup of the manufacturing industry in the country has changed. "There's a difference between unionized auto company workers and non-unionized parts suppliers," Danziger said. "Even when manufacturers haven't cut wages, they are adopting labor-saving technological change." To identify the states with the highest and lowest median household income, 24/7 Wall St. reviewed state data on income from the U.S. Census Bureau's 2012 American Community Survey (ACS). Based on Census treatment, median household income for all years is adjusted for inflation. We also reviewed unemployment data provided by the Bureau of Labor Statistics for 2012, as well as 2012 ACS data on health insurance coverage, employment and poverty. These are America's richest and poorest states.
In trying to make their money work harder for them, investors often fall for questionable investment strategies that promise to help you get rich quick but usually deliver huge losses. But the smartest ways to reach your money goals don't require you to deal with arcane, hard-to-understand financial products. By following these three simple investment strategies, you can get the long-term results you want without the risk you'll find with more aggressive and dubious alternatives. 1. Dollar-cost averaging.
Few investors have huge pots of money to invest all at once, but most people are able to set aside at least a modest amount of money every month. Dollar-cost averaging involves taking that money and investing it in a mix of low-cost index mutual funds or ETFs. The exact mix depends on your tolerance for risk, your time horizon, and the amount you have to save, but by putting aside the same amount month in and month out, you'll build a habit of saving and investing. The benefit of dollar-cost averaging is that when shares are cheaper, you'll buy more of them with the same fixed amount. Meanwhile, when prices rise, you end up with fewer shares, and so on average you'll buy more when an investment is cheap than when it's expensive. Buying low is a key tenet of investing, and dollar-cost averaging lets you take full advantage of it. Hot Cheap Stocks To Buy Right Now: Rent-A-Center Inc.(RCII) Rent-A-Center, Inc., together with its subsidiaries, primarily engages in leasing household durable goods to customers on a rent-to-own basis. The company?s stores offer durable products, such as consumer electronics, appliances, computers, and furniture and accessories under flexible rental purchase agreements that allow the customer to obtain ownership of the merchandise at the conclusion of an agreed upon rental period. It also provides merchandise on an installment sales basis in its stores. As of December 31, 2010, the company operated 3,008 company-owned stores in the United States, and in Canada, Puerto Rico, and Mexico, including 42 retail installment sales stores under the names ?Get It Now? and ?Home Choice?; and 18 rent-to-own stores located in Canada under the ?Rent-A-Centre? name. It also operates 209 franchised rent-to-own stores in 32 states under the ColorTyme trade name; and 384 kiosk locations under the ?RAC Acceptance? model. In addition, the company, th rough its ColorTyme?s franchised stores, offers custom rims and tires for sale or rental under the trade names ?RimTyme? or ?ColorTyme Custom Wheels?. Rent-A-Center, Inc. was founded in 1986 and is headquartered in Plano, Texas. Hot Cheap Stocks To Buy Right Now: SMTC Corporation(SMTX) SMTC Corporation provides advanced electronics manufacturing services to original equipment manufacturers (OEMs) worldwide. The company?s services include product design and engineering services, printed circuit board assembly production, enclosure fabrication, systems integration, testing, and configuration services. It also provides enclosure and precision metal fabrication, cable assembly, interconnect, and engineering design services. The company offers its integrated contract manufacturing services to OEMs and technology companies primarily in the industrial, computing and networking, communications, consumer, and medical market segments. SMTC Corporation was founded in 1985 and is based in Markham, Canada. XPO Logistics, Inc. provides third-party logistics services using a network of relationships with ground, sea, and air carriers in the United States, Mexico, and Canada. It operates in three segments: Express-1, Concert Group Logistics, and Bounce Logistics. The Express-1 segment offers ground expedited surface transportation services for freight. It operates a fleet ranging from cargo vans to semi tractor trailer units. The Concert Group Logistics segment provides domestic and international freight forwarding services through a network of independently owned stations. Its domestic freight forwarding services include air charter, expedites, and time sensitive services, as well as cost sensitive services comprising deferred delivery, less than truckload, and full truck load services; and international freight forwarding services consist of on-board courier and air charters, time sensitive services, less-than-container and full-container-loads, and vessel charters. This segm ent also offers documentation on international shipments, customs clearance and banking, trade show shipment management, time definite and customized product distributions, reverse logistics and on site asset recovery projects, installation coordination, freight optimization, and diversity compliance support services. The Bounce Logistics segment provides premium freight brokerage services for truckload shipments. The company serves approximately 4,000 retail, commercial, manufacturing, and industrial customers through 6 U.S. operations centers and 22 agent locations. It offers its services to the automotive manufacturing, automotive components and supplies, commercial printing, durable goods manufacturing, pharmaceuticals, food and consumer products, and high tech sectors. The company was formerly known as Express-1 Expedited Solutions, Inc. and changed its name to XPO Logistics, Inc. in September 2011. XPO Logistics, Inc. was founded in 1989 and is based in Buchanan, Michi gan. Advisors' Opinion: - [By Travis Hoium]
What: Shares of XPO Logistics (NYSE: XPO ) jumped 13% today after announcing an acquisition. So what: The company will pay $365 million for logistics provider 3PD, consisting of $357 million in cash an $8 million in XPO restricted stock. Is will use its own cash and borrow $195 million from Credit Suisse Group for the remainder of the purchase. �
Hot Cheap Stocks To Buy Right Now: Cardero Resource Corporation(CDY) Cardero Resource Corp., together with its subsidiaries, engages in the acquisition, exploration, and development of mineral properties in Mexico, Peru, Argentina, the United States, and Canada. The company holds a 75% interest in the Carbon Creek deposit, a metallurgical coal development project located in the Peace River Coal Field of northeast British Columbia, Canada. It also has an option to acquire 100% interest in the Pampa El Toro project, an iron sands deposit, located in southern Peru; option to acquire up to an 85% interest in the Longnose property in St. Louis county, northeastern Minnesota; and 100% leasehold interest in the Titac property, located in St. Louis county, northeastern Minnesota. The company was formerly known as Sun Devil Gold Corp. and changed its name to Cardero Resource Corp. in May 1999. Cardero Resource Corp. was founded in 1985 and is headquartered in Vancouver, Canada. Hot Cheap Stocks To Buy Right Now: The Travelers Companies Inc.(TRV) The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. The company operates in three segments: Business Insurance; Financial, Professional, and International Insurance; and Personal Insurance. The Business Insurance segment offers property and casualty products and services, such as commercial multi-peril, property, general liability, commercial auto, and workers? compensation insurance. It operates in six groups: Select Accounts, which serves small businesses; Commercial Accounts that serves mid-sized businesses; National Accounts, which serves large companies; Industry-Focused Underwriting that serves targeted industries; Target Risk Underwriting, which serves commercial businesses requiring specialized product underwriting, claims handling, and risk management services; and Special ized Distribution that offers products to customers through licensed wholesale, general, and program agents. The Financial, Professional, and International Insurance segment provides surety and financial liability coverage, which uses a credit-based underwriting process; and property and casualty products primarily in the United States., the United Kingdom, Ireland, and Canada. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. It distributes its products through independent agents, sponsoring organizations, joint marketing arrangements with other insurers, and direct marketing. The company was founded in 1853 and is based in New York, New York. Advisors' Opinion: - [By Wallace Witkowski]
While the big banks and financial firms have already reported earnings, Greenhaus noted this week will see the largest number of financial sector firms reporting than any other week. More than 20 S&P 500 financial sector companies report including several insurers such as Dow component Travelers Cos. (TRV) , a number of real-estate investment trusts such as Simon Properties Group Inc. (SPG) , capital markets firms such as Franklin Resources Inc. (BEN) �and State Street Corp. (STT) , as well as exchange operator Nasdaq OMX Group Inc. (NDAQ) �
Hot Cheap Stocks To Buy Right Now: USG Corporation(USG) USG Corporation, through its subsidiaries, engages in the manufacture and distribution of building materials worldwide. The company offers gypsum and related products, including gypsum wallboard, joint compounds used for finishing wallboard joints, cement boards, glass mat sheathing, gypsum fiber panels, poured gypsum underlayments, ultra light panels, and various construction plaster products. Its gypsum products are used in various building applications to finish the interior walls, ceilings, and floors in residential, commercial, and institutional constructions, and repair and remodel constructions. The company also produces gypsum-based products for agricultural and industrial customers to use in various applications, including soil conditioning, road repair, fireproofing, and ceramics. In addition, it manufactures ceiling grid and acoustical ceiling tile for electrical and mechanical systems, and air distribution and maintenance applications. USG Corporation distribut es its gypsum products through specialty wallboard distributors, building materials dealers, home improvement centers and other retailers, contractors, and a network of distributors. Further, it distributes other manufacturers? gypsum wallboard, joint compound and other gypsum products, as well as drywall metal, insulation, and roofing products and accessories. The company sells its products under SHEETROCK, DUROCK, FIBEROCK, SECUROCK, LEVELROCK, RED TOP, IMPERIAL, DIAMOND, SUPREMO, AURATONE, ACOUSTONE, DONN, DX, FINELINE, CENTRICITEE, CURVATURA, and COMPASSO brands. The company was founded in 1901 and is based in Chicago, Illinois. Advisors' Opinion: - [By Seth Jayson]
USG (NYSE: USG ) reported earnings on April 24. Here are the numbers you need to know. The 10-second takeaway
For the quarter ended March 31 (Q1), USG missed estimates on revenues and missed estimates on earnings per share. - [By Eric Volkman]
She also serves as chairman of the United States Steel and Carnegie Pension Fund, and on that organization's investment committee. Outside of U.S. Steel, she sits on the board of directors of USG (NYSE: USG ) and the Pennsylvania Business Council, among other entities.
Here's a look at three gold mining companies on a 52-week low. The companies selected are more than 65% off a 52-week high. Billionaires can afford to hold these mining companies for five years of losses without a sting to the wallet and the sheer number of billionaires holding these gold companies is a compelling-enough statement. But in second quarter trading, two Guru investors upped their stakes in two of today's featured companies more than 444%, making us wonder: Is it hope, is it seasoned neutrality, or is there reason to believe these companies could be on the verge of a big pay day? Industry Sector: Metals and Mining The metals & mining sector currently has 30 companies out of 174 on a 52-week low. The low ratio is 0.17. Anglogold Ashanti Limited (AU) Down 65% over 12 months, Anglogold Ashanti Limited has a market cap of $4.85 billion, and trades with a P/E of 8.10. The current share price is around $12.70, or 65.6% off the 52-week high of $36.93. The yield is 2.10%. Anglogold Ashanti Limited is a gold exploration, mining and marketing company with a portfolio of operations and projects on four continents. The company is headquartered in Johannesburg, South Africa, and has 21 operations in 10 countries. Major development projects include: Tropicana located in Australia; Kibali in the Democratic Republic of the Congo (DRC) and La Colosa in Colombia. The company's exploration programs extend to 12 countries, in both established and new gold-producing regions. The company reported financial results for the three months ended June 30, 2013 with production of 935,000 oz., as a 4% increase over production in the first quarter of 2013. The company's adjusted gross profit for the quarter was $231 million compared to $$658 million year-over-year. Guru Action: As of June 30, 2013, there are eleven guru stakeholders and insider buying. The top Guru stakeholder is John Paulson who reduced his position by 1.13%, selling 319,450 shares ! at an average price of $18.03 per share, for a loss of 29.6%. He currently holds 27,935,500 shares or 7.25% of shares outstanding. The holding is 2.8% of his total assets managed. The biggest AU news of second quarter is that Jean-Marie Eveillard's First Eagle Investment Management increased its position by 444.51%, buying 21,981,524 shares at an average price of $18.03 per share for a loss of 29.6%. Track share pricing, revenue and net income:  [ Enlarge Image ]
Richmont Mines Inc. (RIC) Down 70% over 12 months, Richmont Mines Inc. has a market cap of $56.23 billion, and trades with a P/B of 0.60. The current share price is around $1.42, or 74.2% off the 52-week high of $5.50. The yield is 0.00%. First incorporated in Quebec in 1981 under the name Resources Minieres Rouyn Inc., Richmont Mines Inc. is engaged in the acquisition, exploration, operation, financing, and development of mineral properties. The company began its exploration activities in northwestern Quebec in the spring of 1984. The company reported financial results (reported in Canadian currency, unless otherwise noted) for the three months ended June 30, 2013 with: Revenues for the second quarter of 2013 at $17.8 million, down 25% from revenues of $23.7 million in the second quarter of 2012, reflecting a 12% decrease in the number of gold ounces sold, and a 14% decrease in the average gold price obtained in Canadian dollars. A total of 12,826 ounces of gold were sold at an average price of $1,389 ($1,367 USD) per ounce in the current quarter, versus gold sales of 14,611 ounces and an average realized sales price of $1,617 ($1,618USD) per ounce in the comparable period last year. The reported a net loss of $1.1 million, or $0.03 per share, in the second quarter of 2013, versus a net loss from continuing operations of $2.9 million, or $0.09 per share in the second quarter of 2012, according to a company press relea! se. Guru Action: As of June 30, 2013, there are three guru stakeholders and active insider trading. The top Guru stakeholder is Jim Simons who increased his position by 6.81%, buying 136,100 shares at an average price of $1.93 per share, making a loss of 26.4%. He currently holds 2,135,100 shares or 5.39% of shares outstanding. In five years of holding there is not one gaining quarter. Simons has averaged a loss of 77% on 2,769,700 shares bought at an average price of $6.17 per share. He also averaged a loss of 63% on 634,600 shares sold at an average price of $3.79 per share. Charles Brandes made a new buy as of June 30, 2013. He bought 13,696 shares at an average price of $1.93 for a loss of 26.4%. Track share pricing, revenue and net income:  [ Enlarge Image ]
Buenaventura Mining Company Inc. (BVN) Down 70% over 12 months, Buenaventura Mining Company Inc. has a market cap of $2.95 billion, and trades with a P/E of 6.70. The current share price is around $11.65, or 70.9% off the 52-week high of $40.09. The yield is 4.13%. Located in Peru, Buenaventura Mining Company Inc. is a publicly-traded precious metals company, mainly producing refined gold and silver, either as dore bars or concentrates. The company is engaged in the exploration, mining and processing of gold, silver and, to a lesser extent, other metals such as lead, zinc and copper as concentrates. The company reported financial results (in U.S. currency) for the three months ended June 30, 2013 with a net income of $19 million, 88% lower than $153.2 million for the same quarter in the previous year. EBITDA was reported as $40.3 million, 65% lower than $114.6 million in the same quarter a year ago, according to a company press release. Guru Action: As of June 30, 2013, there are four guru stakeholders and no insiders trading. The top Guru stakeholder Jeremy Grantham increased his position by 4! 0.36%, bu! ying 1,689,982 shares at an average price of $19.50 per share, for a loss of 40.3%. He currently holds 5,877,252 shares or 2.31% of shares outstanding. In five years of holding, his trading history shows every quarter with a double-digit loss. Guru Jim Simons increased his position by 444.21% in the second quarter, buying 1,323,300 shares at an average price of $19.5 for a 40.3% loss. Over five years, he has averaged a loss of 60% on 3,320,900 shares bought at an average price of $29.09 per share. He has averaged a loss of 55% on 5,687,500 shares sold at an average price of $26.05 per share. Track share pricing, revenue and net income:  [ Enlarge Image ]
Try a GuruFocus Global Premium Membership to access companies and markets around the world. Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders. If you are not yet a Premium Member, we invite you for a 7-day Free Trial.
  Popular Posts: 6 Biotechnology Stocks to Buy Now5 Oil and Gas Stocks to Buy Now9 Biotechnology Stocks to Sell Now Recent Posts: 10 Best “Strong Buy” Stocks — CSGP TYL PCYC and more 5 Stocks With Bad Earnings Momentum — FNBN NAV SGK LGCY VNR 22 Commercial Banking Stocks to Buy Now View All Posts This week, these ten stocks, all currently earning A’s (“strong buy”) on Portfolio Grader, have the best year-to-date performance. Since the beginning of the year, the Nasdaq is up 10.9%, the Dow increased 13.2%, and the S&P has increased 12.1%. Shares of CoStar Group, Inc. (NASDAQ:) have risen 97.6% since January 1. CoStar Group provides information and analytic services to the commercial real estate industry in the United States, the United Kingdom, and France. . Since January 1, Tyler Technologies, Inc. (NYSE:) has jumped 98.1%. Tyler Technologies provides integrated software systems and related services for local-government entities such as counties and schools. . Shares of Pharmacyclics, Inc. (NASDAQ:) have leapt 101.8% since January 1. Pharmacyclics is a pharmaceutical company developing products to improve upon current therapeutic approaches to cancer, atherosclerosis, and retinal disease. . Since the first of the year, the price of Western Alliance Bancorporation (NYSE:) has swelled 104.6%. Western Alliance provides a range of banking and related services to businesses, professional firms, real estate developers and investors, local nonprofit organizations, high net worth individuals, and consumers. . Since January 1, the price of Lions Gate Entertainment (NYSE:) has grown 105.7%. Lions Gate Entertainment develops, produces, and distributes filmed entertainment content. . Since the first of the year, shares of FleetCor Technologies, Inc. (NYSE:) have soared 113.9%. FleetCor Technologies is an independent global provider of specialized payment products and services to commercial fleets, major oil companies and petroleum marketers. . Since January 1, Lumber Liquidators Holdings, Inc. (NYSE:) has shot up 120%. Lumber Liquidators retails hardwood flooring in the United States. . Since January 1, Multimedia Games Holding Company, Inc. (NASDAQ:) has climbed 124.6%. Multimedia Games designs, manufactures and supplies stand alone and networked gaming systems. . The price of Santarus, Inc. (NASDAQ:) is up 185.7% since the first of the year. Santarus is a specialty pharmaceutical company focused on acquiring, developing and commercializing proprietary products that address the needs of patients treated by gastroenterologists and other targeted physicians. . The price of Himax Technologies, Inc. Sponsored ADR (NASDAQ:) has seen a 266.7% boost since the first of the year. Himax Technologies designs and manufactures integrated circuits. . Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.
From the smallest biotech to the biggest pharmaceutical stock The Motley Fool's Market Check-Up covers the health care sector's biggest headlines, hottest market movers, and Obamacare's ongoing rollout. In this segment from Friday's episode, health-care analyst David Williamson examines what seems on the surface like a radical shift for Bristol-Myers Squibb (NYSE: BMY ) . The company has announced that it will discontinue drug discovery in the hepatitis-C, diabetes, and neurological disorder spaces. It will instead focus on a number of treatment areas, singling out immuno-oncology as the most important for the pharma's future. David takes a close look at this major shift and the reasons behind it, analyzes the space that Bristol-Myers is focusing on going forward, and tells investors whether this move is really as radical as it seems. Looking for biotech profits?
The best way to play the biotech space is to find companies that shun the status quo and instead discover revolutionary, groundbreaking technologies. In The Motley Fool's brand-new free report "2 Game-Changing Biotechs Revolutionizing the Way We Treat Cancer," find out about a new technology that big pharma is endorsing through partnerships, and the two companies that are set to profit from this emerging drug class. Click here to get your copy today.
On Monday, retail giant Target (TGT   ) announced that its stores will be open on Thanksgiving day, giving shoppers early access to its Black Friday deals. Beginning at 8:00 pm on Thanksgiving day, Target shoppers will have access to the store’s doorbuster deals, which will take place in store and online from Thursday November 28 to Saturday November 30. Some of Target’s doorbuster deals include Apple iPad Minis for only $299 and the new iPad Air for $479. Commenting on Target’s Thanksgiving Day plans, executive vice president Kathee Tesija noted “For both our guests and team members, Black Friday is an exciting event that officially marks the beginning of the holiday shopping season. By offering advance access to deals at Target.com and opening our stores earlier, we are making it easier for guests to build a Black Friday ritual that works for them. No matter where or when they choose to shop at Target, guests will be able to kick off their holiday shopping with deep discounts on a wide variety of the season's most popular items.” Target shares inched 0.88% higher during Monday’s session. Year-to-date, the stock is up 10.69%.
After being one of the stock market's darlings for the last decade or so, emerging market nations took a break over the last few weeks as investors prepared themselves for the eventual end of Federal Reserve easing programs. With Fed Chairman Ben Bernake's recent decision not to taper bond purchases as early as expected, a fire has once again been lit under emerging markets. Investors may want to plow back in. No Taper Yet
Here's why:
First, as the Fed has lowered economic growth forecasts for the U.S., the various bond buying programs could last well into 2014. That fact is certainly intensified by the prediction that "dovish" Janet Yellen is almost guaranteed the next Fed chairman spot after Bernanke. Her background suggests that easing programs could be on the table for quite a while until unemployment drops further and economic growth accelerates.
In addition, aside from the obvious "cheap money" that will continue to push up emerging market equities and bonds higher, emerging markets still look good on a number of fronts. The recent declines have pushed valuations into the bargain territory. Looking at P/E ratios, the sector is currently trading at a 35% discount to developed markets. This is significantly lower than the historical norm. That discount also extends to other metrics like price-to-book and price-to-cash flows.
Despite this cheapness, much of the emerging market growth story remains valid. Rising middle class populations, commodity wealth along with fiscal discipline are still hallmarks of the developing world. Upping Exposure
Broad sector measures such as iShares MSCI Emerging Markets (NYSE:EEM) or the Vanguard FTSE Emerging Markets ETF (NYSE:VWO) are still the easiest and broadest routes gain exposure.
The PowerShares DWA Emerging Markets Technical Leaders ETF (NYSE:PIE) could be one of the best ways to get the most bang for your Fed buck in the sector. This ETF ranks its components based on relative strength traits. That means it bets on faster moving emerging market companies like Companhia de Bebidas Das Americas (NYSE:ABV) and HDFC Bank (NYSE:HDB). Top nations include Indonesia, Thailand and Turkey. The fund jumped nearly 5% on the day Bernanke announced that he wasn't going to taper. PIE's expenses run 0.90%.
A recent research paper by the Federal Reserve Bank of New York showed that large-scale asset purchases have the effect of pushing investors into emerging market debt. That means both the iShares JPMorgan USD Emerging Markets Bond (NYSE:EMB) and WisdomTree Emerging Markets Local Debt (NYSE:ELD) could be big buys as the Fed continues to stimulate. Both make direct bets on emerging market bonds with dollar and local currency exposure, respectively.
Finally, perhaps the biggest discount in the emerging world can be found in the BRICs. Brazil, Russia, India and China have been hit especially hard as many investors abandoned their growth stories. The SPDR S&P BRIC 40 (NYSE:BIK) tracks 40 of the largest companies in these nations and can be used to gain extra exposure to the titans. The Bottom Line
The emerging market nations have been hit hard this year as tapering concerns have caused investors to flee risky assets. However, with the Fed signaling that quantitative easing is still very much on the table, the sector should continue to rally into the New Year. For investors, making a play in the developing world could be a big portfolio win. The previous picks- along with the Schwab Emerging Markets Equity ETF (NASDAQ:SCHE) –make ideal selections. Disclosure: At the time of writing, the author owned shares of VWO
DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.
>>4 Huge Stocks on Traders' Radars
This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.
That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.
Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.
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If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.
With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.
AeroVironment
My first earnings short-squeeze play is unmanned aircraft and efficient energy systems player AeroVironment (AVAV), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect AeroVironment to report revenue of $43.78 million on a loss of 7 cents per share.
The current short interest as a percentage of the float for AeroVironment is pretty high at 11.6%. That means that out of the 17.70 million shares in the tradable float, 2.24 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 4.7%, or by 99,000 shares. If the bears are caught pressing their bets into a strong quarter, then shares of AVAV could jump sharply higher post-earnings as the bears rush to cover some of their bets.
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From a technical perspective, AVAV is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways inside of a consolidation pattern for the last month and change, with shares moving between $23.97 on the upside and $22.08 on the downside. Any high-volume move above the upper-end of its recent range post-earnings could trigger a big breakout trade for shares of AVAV.
If you're bullish on AVAV, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $23.43 to $23.97 a share and then once it clears its 52-week high at $24.64 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 213,342 shares. If that breakout triggers, then AVAV will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $28 to $32 a share, or even $33 a share.
Zale
Another potential earnings short-squeeze play is fine jewelry retailer Zale (ZLC), which is set to release its numbers Wednesday before the market open. Wall Street analysts, on average, expect Zale to report revenue of $409.04 million on a loss of 33 cents per share.
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The current short interest as a percentage of the float for Zale is notable at 7.8%. That means that out of the 31.97 million shares in the tradable float, 2.49 million shares are sold short by the bears. This is a decent short interest on a stock with a relatively low tradable float. If the bulls get the earnings news they're looking for, then shares of ZLC could easily rip sharply higher post-earnings as the bears move to cover some of their short positions.
From a technical perspective, ZLC is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways inside of a consolidation pattern for the last three months, with shares moving between $8 on the downside and $10.49 on the upside. Any high-volume move above the upper end of its recent range post-earnings could trigger a major breakout trade for shares of ZLC.
If you're in the bull camp on ZLC, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $9.50 to its 52-week high at $10.49 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 830,678 shares. If that breakout triggers, then ZLC will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $14 to $15 a share.
I would simply avoid ZLC or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support levels at $8.69 to $7.96 a share with high volume. If we get that move, then ZLC will set up to re-test or possibly take out its next major support levels at $6.50 to its 200-day moving average at $6.05 a share.
Fresh Market
One potential earnings short-squeeze candidate is specialty foods retailer Fresh Market (TFM), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Fresh Market to report revenue of $357 million on earnings of 32 cents per share.
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The current short interest as a percentage of the float for Fresh Market is pretty high at 9.4%. That means that out of the 40.11 million shares in the tradable float, 3.75 million shares are sold short by the bears. This is a big short interest on a stock with a relatively low tradable float. If the bulls get the earnings news they're looking for, then shares of TFM could spike sharply higher post-earnings as the bears get squeezed out of some of their short positions.
From a technical perspective, TFM is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $36.51 to its recent high of $57.17 a share. During that uptrend, shares of TFM have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TFM within range of triggering a near-term breakout trade post-earnings.
If you're bullish on TFM, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance at $57.17 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 481,812 shares. If that breakout triggers, then TFM will set up to re-test or possibly take out its next major overhead resistance levels at $62.48 to its 52-week high at $65.69 a share.
I would avoid TFM or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at its 50-day moving average of $52.95 to $52.81 a share with high volume. If we get that move, then TFM will set up to re-test or possibly take out its next major support levels at its 200-day moving average of $48.56 to $48 a share.
Joy Global
Another earnings short-squeeze prospect is high productivity mining equipment maker Joy Global (JOY), which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect Joy Global to report revenue of $1.18 billion on earnings of $1.36 per share.
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The current short interest as a percentage of the float for Joy Global is extremely high at 17.6%. That means that out of the 105.45 million shares in the tradable float, 18.58 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 14.2%, or by about 2.3 million shares. If the bears are caught pressing their bets into a bullish quarter, then shares of JOY could rip sharply higher post-earnings as the bears jump to cover some of their short positions.
From a technical perspective, JOY is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock recently formed a double bottom chart pattern at $47.96 to $47.83 a share. Following that bottom, shares of JOY have started to uptrend and move back above its 50-day moving average. That move has now pushed JOY within range of triggering a near-term breakout trade post-earnings.
If you're bullish on JOY, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $54.12 to $55.50 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.90 million shares. If that breakout triggers, then JOY will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $57 to $59.50. Any high-volume move above those levels will then put its next major overhead resistance levels at $61.50 to $63 into range for shares of JOY.
I would avoid JOY or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average at $50.46 a share to more near-term support at $50.25 share with high volume. If we get that move, then JOY will set up to re-test or possibly take out its double bottom low area at $47.96 to $47.83 a share. If $47.83 a share gets taken out with volume, then JOY will enter new 52-week-low territory, which is bearish technical price action.
Bio-Reference Laboratories
My final earnings short-squeeze play is clinical testing laboratory player Bio-Reference Laboratories (BRLI), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Bio-Reference Laboratories to report revenue of $183.53 million on earnings of 51 cents per share.
The current short interest as a percentage of the float for Bio-Reference Laboratories is extremely high at 37.4%. That means that out of the 24.45 million shares in the tradable float, 9.17 million shares are sold short by the bears. This is a monster short interest on a stock with a very low tradable float. Any bullish earnings news could easily send shares of BRLI skyrocketing higher post-earnings as the bears rush to cover some of their short positions.
From a technical perspective, BRLI is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending range bound for the last two months, with shares moving between $30 on the upside and $25.38 on the downside. Any high-volume move above the upper-end of its recent range post-earnings could trigger a big breakout trade for shares of BRLI.
If you're in the bull camp on BRLI, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $28.24 to $30 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 305,850 shares. If that breakout triggers, then BRLI will set up to re-test or possibly take out its 52-week high at $32.47 to its three-year high at $32.86 a share. Any high-volume move above those levels will then put $35 to $40 into range for shares of BRLI.
I would avoid BRLI or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 200-day moving average at $27.46 to its 50-day moving average at $27.31 a share with high volume. If we get that move, then BRLI will set up to re-test or possibly take out its next major support levels at $26 to $25.38 a share. Any high-volume move below those levels will then give BRLI a chance to tag its 52-week low at $23.36 a share.
To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
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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.
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