Monday, August 18, 2014

Four Consumer Discretionary Companies Where Insiders are Buying

Although Inside Scoop is on an August respite (feel free to catch up all the Scoop goodness here), we're still prowling around over at InsiderScore looking for interesting buys this month. One space where insiders bought is the consumer discretionary sector.  The highlights:

At Genuine Parts (GPC), CEO and Chairman Thomas Gallagher bought 5,000 shares of the auto and industrial parts company for $420,000, marking his first transaction on record in 10 years. Gallagher bought after the company's earnings beat estimates. InsiderScore notes that the last purchase at the company was in December 2012 and comments:

[Gallagher is] sending a compelling message that he thinks the stock isn’t fairly valued. While multi-insider events send stronger signals we note that any buy/sell activity is rare, making the purchase a true outlier.

Rent-A-Center (RCII) grabbed our attention when the new CFO joined a director for a cluster buy. Most notable were Guy Constant, who bought 10,000 shares for $248,400 and J.V. Lentell, a director, who bought 5,000 shares for $119,000. InsiderScore notes that the buys occurred in the wake of a three-year low at the rent-to-own durable goods retailer.

Homebuilder Beazer Homes (BZH) makes the cut following a cluster buy worth $781,300. Executives including CEO Allan Merrill and CFO Robert Salomon participated at a time when shares fell on earnings that missed estimates. InsiderScore had this to say:

The cluster buy sends a message that insiders believe the market overreacted to earnings and that the stock’s price is not representing their perceived value. This is classic buying on post-earnings weakness but it’s something we’ve seen less of across the market over the past few years due, in part, to relatively high levels of insider selling.

Finally, another cluster buy following earnings weakness and a share slump occurred at Penn National Gaming (PENN). Three top executives including CEO Timothy Wilmott, who bought 50,000 shares for $522,700 and COO Jay Snowden, who bought 11,500 shares for $118,900 participated. Also joining them was CFO Saul Reibstein, who bought 2,500 shares for $25,400. InsiderScore notes that Wilmott and Snowden bought at similar levels in May.

Saturday, August 16, 2014

4 Stocks Under $10 to Trade Now

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

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.

Read More: Triple Your Gains With These 5 Cash-Rich Companies

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

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

Read More: 5 Stocks Set to Soar on Bullish Earnings


Aeterna Zentaris

Aeterna Zentaris (AEZS), a specialty biopharmaceutical company, is focused on developing and commercializing novel treatments in oncology and endocrinology. This stock closed up 5% to $1.25 in Thursday's trading session.

Thursday's Range: $1.19-$1.26
52-Week Range: $0.99-$1.75
Thursday's Volume: 1.32 million
Three-Month Average Volume: 646,050

From a technical perspective, AEZS ripped sharply higher here right above its 50-day moving average of $1.17 and back above its 200-day moving average of $1.22 with strong upside volume flows. This sharp spike higher on Thursday also pushed shares of AEZS into breakout territory, since the stock took out some more near-term overhead resistance at $1.23. This move is starting to push shares of AEZS within range of triggering another big breakout trade. That trade will hit if AEZS manages to take out some key overhead resistance levels at $1.28 to $1.35 with high volume.

Traders should now look for long-biased trades in AEZS as long as it's trending above its 200-day at $1.22 or above Thursday's intraday low of $1.19 and then once it sustains a move or close above those breakout levels with volume that hits near or above 646,050 shares. If that breakout begins soon, then AEZS will set up to re-test or possibly take out its next major overhead resistance levels at $1.52 to $1.62.

Scorpio Bulkers

Scorpio Bulkers (SALT), a development stage company, focuses on owning and operating drybulk carriers. This stock closed up 3.6% to $7.95 a share in Thursday's trading session.

Thursday's Range: $7.66-$7.97
52-Week Range: $7.56-$10.73
Thursday's Volume: 764,000
Three-Month Average Volume: 417,631

From a technical perspective, SALT ripped higher here right above some near-term support at $7.56 with above-average volume. This sharp spike to the upside on Thursday is quickly pushing shares of SALT within range of triggering a near-term breakout trade. That trade will hit if SALT manages to take out some near-term overhead resistance levels at $8 to $8.10 with high volume.

Traders should now look for long-biased trades in SALT as long as it's trending above its 52-week low of $7.56 and then once it sustains a move or close above those breakout levels with volume that hits near or above 417,631 shares. If that breakout kicks off soon, then SALT will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $8.60 to $8.75, or around $9 to $9.50.

Rubicon Technology

Rubicon Technology (RBCN), an electronic materials provider, develops, manufactures, and sells monocrystalline sapphire and other crystalline products for light-emitting diodes (LEDs), radio frequency integrated circuits (RFICs), blue laser diodes, optoelectronics, and other optical applications. This stock closed up 4% to $6.12 a share in Thursday's trading session.

Thursday's Range: $5.85-$6.16
52-Week Range: $5.52-$14.67
Thursday's Volume: 322,000
Three-Month Average Volume: 545,912

From a technical perspective, RBCN ripped higher here with lighter-than-average volume. This stock recently gapped down sharply from close to $8 to $5.52 with monster downside volume. Following that move, shares of RBCN have started to bounce higher off that $5.52 low and it's quickly moving within range of triggering a major breakout trade. That trade will hit if RBCN manages to take out Thursday's intraday high of $6.16 to its gap-down-day high of $6.50 with high volume.

Traders should now look for long-biased trades in RBCN as long as it's trending above Thursday's intraday low of $5.85 or above more near-term support at $5.70 and then once it sustains a move or close above those breakout levels with volume that hits near or above 545,912 shares. If that breakout hits soon, then RBCN will set up to re-fill some of its previous gap-down-day zone that started near $8.

Sunesis Pharmaceuticals

Sunesis Pharmaceuticals (SNSS), a biopharmaceutical company, focuses on the development and commercialization of oncology therapeutics for the treatment of solid and hematologic cancers. This stock closed up 2.7% to $7.19 a share in Thursday's trading session.

Thursday's Range: $6.91-$7.23
52-Week Range: $3.84-$7.49
Thursday's Volume: 741,000
Three-Month Average Volume: 466,551

From a technical perspective, SNSS jumped higher here right above some near-term support at $6.75 with above-average volume. This stock has been uptrending strong for the last month, with shares moving higher from its low of $5.46 to its recent high of $7.24. During that uptrend, shares of SNSS have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SNSS within range of triggering a major breakout trade. That trade will hit if SNSS manages to take out some key overhead resistance levels at $7.24 to its 52-week high at $7.49 with high volume.

Traders should now look for long-biased trades in SNSS as long as it's trending above some near-term support at $6.75 or above $6.60 and then once it sustains a move or close above those breakout levels with volume that hits near or above 466,551 shares. If that breakout materializes soon, then SNSS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $9 to $10.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS: >>3 Stocks Under $10 to Trade for Breakouts >>Trade These 5 Consumer Stocks for Gains in August >>5 Large-Cap Stocks to Trade for Gains

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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


Monday, August 11, 2014

5 Things DreamWorks' Management Wants You to Know

If you're a DreamWorks Animation (NASDAQ: DWA  ) investor, you likely aren't happy right now. Your company has, after all, taken a huge writedown on a major film in each of the last three fiscal years. 

The pain continues, as DreamWorks posted a loss of $15 million, or $0.18 a share, for its most recent quarter. To put those struggles in context, here are five key quotes from CEO Jeffrey Katzenberg's latest conference call with analysts.

1. How to Train Your Dragon 2 will be profitable.

Source: DreamWorks.

[How to Train Your Dragon 2] will be a highly profitable film for the company and will remain a very valuable franchise for many years to come. 

With only three film releases this year, DreamWorks needed a win after the disappointment of Mr. Peabody & Sherman, which was responsible for a $60 million loss. Dragon 2 provided that win, although in an uneven fashion. The film has pulled in $170 million in domestic box office revenue to date, making it unlikely to beat its predecessor's $218 million haul.

However, the sequel is doing much better abroad, with $318 million in receipts, compared to the original's $277 million. Given that Dragon 2 still has a chance to rack up even more international sales, the movie looks set to start kicking in some solid profits starting next quarter.

2. Diversification is our strategy, and it's expensive.

CEO Jeffrey Katzenberg. Source: DreamWorks.

Our company's strategic goal ... is to transition DreamWorks Animation into a global branded family entertainment company. In pursuit of this goal, 2014 is clearly an investment year for us. Our higher costs and the impact they have on the quarterly results we are reporting here today are indicative of this. ... [We] expect our spending to continue during the second half of 2014 and into next year.

In hopes of countering some of the dramatic profit swings that come from box office hits and misses, DreamWorks is diversifying its business. To that end, the company is investing heavily in its television and consumer products divisions. For example, DreamWorks just last month hired former Disney (NYSE: DIS  ) executive Mark Zoradi, who helped build the Disney Channel, as its new chief operating officer. These investments are hurting profits this year and should drag on earnings next year as well, according to Katzenberg.

3. Our movies will be cheaper -- but not yet.

Reducing our film production cost remains a key area of focus for us. However, the decision to adjust our film slate does have production cost implications for both Penguins of Madagascar and Home. We now believe that both films will have production costs of approximately $135 million.

To lower the hurdle on profitability, management two years ago announced a new goal of lowering per-film development costs from $145 million to $120 million. Unfortunately, investors haven't seen the fruits of that strategy yet, and DreamWorks' next two films will each cost about as much to produce as Rise of the Guardians did back in 2012.

4. Don't expect more than three feature films a year from us.
When asked during the conference call whether lower film costs will eventually allow DreamWorks to expand its limited production pace, Katzenberg said no:

We feel that the flexibility of two or three films a year is the right scale and the right value for us, particularly as we continue to diversify the company. ... I would not expect to see more than three titles a year out of us in the near future.

5. It's been a rough summer for movies, but the industry will bounce back.

It has not been a stellar summer by any account. But I would feel very confident of looking at 2015 and, in particular, 2016, and I would be very comfortable making a sizable bet that you'll see maybe unprecedented opportunity in the movie business. So these are the cycles of the movie business. I know it makes all of you that have to follow this business incredibly challenged here, if not sometimes cranky. It's not a lot of fun on our side, I have to say. But this is the nature of the movie business. And we are in a bit of a dip in it ... it's a cyclical issue.

Katzenberg is right to stress that the movie business is in a rut. Overall receipts through July were down about 7% from the prior year, indicating that the lull isn't specific to DreamWorks' films. Still, investors have to hope that the tide starts to turn back in the company's favor over the next few years, at least until it can lessen its reliance on just a handful of feature films to make or break its fiscal year.

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

Thursday, August 7, 2014

3 Stocks Spiking on Unusual Volume

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

Read More: Warren Buffett's Top 10 Dividend Stocks

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.

Read More: 5 Hated Stocks That Could Pop When the S&P Drops

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

CaesarStone Sdot-Yam

CaesarStone Sdot-Yam (CSTE), manufactures and sells engineered quartz surfaces under the Caesarstone brand primarily the U.S., Australia, Canada and Israel. This stock closed up 11% at $48.76 in Wednesday's trading session.

Wednesday's Volume: 1.21 million

Three-Month Average Volume: 286,791

Volume % Change: 299%

From a technical perspective, CSTE gapped up sharply higher here back above its 50-day moving average of $47.08 with above-average volume. This large spike to the upside on Wednesday also pushed shares of CSTE into breakout territory, since it took out some near-term overhead resistance at $48. Market players should now look for a continuation move to the upside in the short-term if CSTE manages to take out Wednesday's intraday high of $49.88 with high volume.

Traders should now look for long-biased trades in CSTE as long as it's trending above Wednesday's intraday low of $46.50 and then once it sustains a move or close above $49.88 with volume that's near or above 286,791 shares. If that move gets underway soon, then CSTE will set up to re-test or possibly take out its next major overhead resistance levels at $51.67 to $52, or even $56.

Read More: 8 Stocks George Soros Is Buying

E2open

E2open (EOPN) provides cloud-based, on-demand software solutions for supply chain management. This stock closed up 1.1% at $16.15 in Wednesday's trading session.

Wednesday's Volume: 443,000

Three-Month Average Volume: 196,695

Volume % Change: 125%

From a technical perspective, EOPN trended modestly higher here right above some near-term support at $15.60 with above-average volume. This stock recently dropped sharply lower from its July high of $21.90 to its 52-week low of $15.13. Following that drop, shares of EOPN have stated to rebound a bit and it's now moving within range of triggering a near-term breakout trade. That trade will hit if EOPN manages to take out some near-term overhead resistance levels at $16.44 to $16.74 with high volume.

Traders should now look for long-biased trades in EOPN as long as it's trending above some key near-term support levels at $15.60 or its 52-week low of $15.13 and then once it sustains a move or close above those breakout levels with volume that's near or above 196,695 shares. If that breakout hits soon, then EOPN will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $18.03 to around $20, or even its 200-day moving average of $21.38.

Read More: 4 Stocks Warren Buffett Is Selling in 2014

WageWorks

WageWorks (WAGE) provides consumer-directed benefits programs to employees to save money on taxes in the U.S. This stock closed up 3.9% at $45.96 in Wednesday's trading session.

Wednesday's Volume: 599,000

Three-Month Average Volume: 386,411

Volume % Change: 65%

From a technical perspective, WAGE jumped higher here back above its 50-day moving average of $44.71 with above-average volume. This stock recently formed a double bottom chart pattern at $49.92 to $40.37. Following that bottom, shares of WAGE have started to uptrend and it's now quickly moving within range of triggering a near-term breakout trade. That trade will hit if WAGE manages to take out Wednesday's intraday high of $46.18 to some more key overhead resistance at $47.19 with high volume.

Traders should now look for long-biased trades in WAGE as long as it's trending above Wednesday's intraday low of $43.89 or above $42.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 386,411 shares. If that breakout materializes soon, then WAGE will set up to re-test or possibly take out its next major overhead resistance levels at $50 to $51, or even its 200-day moving average of $52.19. Any high-volume moves above its 200-day will then give WAGE a chance to tag $55 to $57.

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

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>4 Big Stocks on Traders' Radars



>>5 Tech Trades Ready to Move



>>4 Stocks Under $10 Moving Higher

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.


Celgene: Five Reasons to Be Bullish

If the big-five biotechs were the Rat Pack, Celgene (CELG) would be Joey Bishop, to Amgen’s (AMGN) Frank Sinatra, Biogen’s (BIIB) Dean Martin and Gilead Sciences (GILD) Sammy Davis Jr. (Which, I suppose makes Regenron (REGN) Peter Lawford. These analogies only go so far.)

Steve Remich

Dig: Gilead has returned 23% so far this year, while Amgen has gained 13%, Biogen has risen 16% and Regeneron has advanced 21%. And Celgene? It’s up just 2.5% in 2014. Still, RBC’s Michael Yee and team have found five reasons to be bullish on Celgene:

Price target to $100 now – our ongoing positive thesis is: 1) upcoming Crohn’s data will increase Street confidence in $1B opportunity, 2) eventual settlement with Actavis (ACT) in 2015, 3) second inning of pipeline thesis, 4) company keeps buying back more stock, 5) will bullish new 2020 long-term guidance start becoming a topic of conversation?

 Shares of Celgene have ticked up 0.1% to $86.65 at 1:20 p.m., while Biogen is unchanged at $325.23, Amgen has dropped 0.3% to $127.48, Gilead has gained 0.4% to $92.64 and Regeneron has jumped 2% to $339.95.  

Wednesday, August 6, 2014

Top Performing Industries For August 6, 2014

Related CDE Top 4 NYSE Stocks In The Silver Industry With The Highest Revenue Worst Performing Industries For July 22, 2014 Related SYNA Pacific Crest: Apple-Visa Hookup For Mobile Payments On The Horizon? Synaptics Beats On Earnings, Moves Higher On Smartphone Fingerprint ID Products

At 10:45 am, the Dow gained 0.11% to 16,448.10, the broader Standard & Poor's 500 index moved up 0.12% to 1,922.50 and the NASDAQ composite index rose 0.13% to 4,358.40.

The industries that are supporting the market today are:

Silver: This industry rose 1.76% by 10:45 am ET. The top performer in this industry was Coeur Mining (NYSE: CDE), which gained 5.8%. Coeur Mining is expected to release its quarterly earnings after the closing bell.

Computer Peripherals: The industry gained 1.72% by 10:45 am. The top performer in this industry was Synaptics (NASDAQ: SYNA), which gained 3.7%. Synaptics' PEG ratio is 0.81.

Music & Video Stores: This industry moved up 1.60% by 10:45 am. The top performer in this industry was Netflix (NASDAQ: NFLX), which gained 1.5%. Netflix shares have jumped 69.68% over the past 52 weeks, while the S&P 500 index has gained 13.56% in the same period.

Appliances: This industry jumped 1.33% by 10:45 am. The top performer in this industry was Whirlpool (NYSE: WHR), which rose 1.6%. Whirlpool's trailing-twelve-month revenue is $18.82 billion.

Posted-In: Top Performing IndustriesNews Intraday Update Markets Movers

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Most Popular Ebola Stocks Continue Higher Did George Soros Sell His Stake In Israeli-Based SodaStream Because Of Political Reasons? ONCOSEC MEDICAL:Multiplying The Immune Response Earnings Scheduled For August 5, 2014 Herbalife Gets A Barron's Boost, But Drops After The Open 4 Implications Of New York's Draconian Bitcoin Regulations Related Articles (NFLX + CDE) Top Performing Industries For August 6, 2014 AMC Networks May Buyout BBC America Or Get Bought Out By Netflix Top Performing Industries For July 30, 2014 Markets Little Changed Ahead Of The Federal Reserve's Policy Decision 5 Chart set-ups to watch next week Worst Performing Industries For July 24, 2014

Happy Ending: Cinemark Climbs On Q2 Beat

Cinemark Holdings (CNK) is climbing Tuesday, shaking off earlier weakness as the market digests its better-than-expected second quarter.

The company said it earned 62 cents a share on revenue of $717.9 million. Analysts were looking for earnings of 48 cents a share on revenue of $707.7 million.

Average ticket price increased 2.1% in the quarter, and concession revenues per patron grew 2.9%. Admissions overall were $455.7 million while concession sales were $226.5 million.

FBR's Barton Crockett reiterated an Outperform rating and $39 price target: "Cinemark’s 2Q14 earnings report was encouraging in a difficult period. Revenues beat our expectations on upside in box office per screen growth in Latin America and U.S. concession pricing. Adj. EBITDA beat because of U.S. expenses. Domestically, while Cinemark’s box office trend was in-line with our estimate, it did not feature the Imax/faith-based movie mix headwinds that resulted in underperformance at Regal Entertainment (RGC) and AMC Entertainment (AMC)."

MKM Partners'' Eric Handler reiterated a Buy rating and $40 price target: "We look for Cinemark’s shares to outperform the market following better than expected 2Q14 results. Cinemark beat our/consensus estimates with upside to both domestic and Latin American results. Our positive view towards Cinemark reflects: (1) continued expansion potential of 100-125 screens annually in Latin America; and (2) projected increases in FCF over the next several years, which could lead to more regular dividend increases. The box office will likely remain choppy for the remainder of 2014, but we believe a strong two-year, global content cycle will begin in 2015."

Monday, August 4, 2014

Why Chrysler's Ram Could Lose to GM's Chevy Silverado

Sales of Chrysler's Ram pickup line are up 19% so far this year. But a change in strategy could trim Chrysler's gains soon. Source: Fiat Chrysler.

Could a decline in Fiat Chrysler's (NASDAQOTH: FIATY  ) earnings because of problems in Latin America spell trouble for Ram pickup sales in America?

Let's start with the big picture. Fiat Chrysler reported a sharp decline in second-quarter earnings on Wednesday as economic weakness in Latin America offset improved performance in Europe and Asia.

FCA reported a net profit of 197 million euros ($264 million) for the quarter, a sharp drop from the 435 million euro profit it reported in the year-ago quarter. It also fell far short of the Wall Street consensus estimate of 282 million euros, as reported by Reuters.

So, what do FCA's Latin America troubles have to do with Ram pickups? Read on.

FCA needs to make more money in North America, now
Although Fiat shareholders officially voted to approve the merger on Friday, and there's still some paperwork to be done before it's really official, Fiat and Chrysler have effectively been run as one company for a while. 

That means CEO Sergio Marchionne takes a global view of his entire organization. And while he has to like the sales growth he has seen from the company's operations in North America -- sales were up 7% in the second quarter -- the profits it has been making aren't as solid as he would like.

Just as we've seen at rival Ford (NYSE: F  ) , where strong North America profits have carried the Blue Oval while it restructures in Europe and expands aggressively in Asia, profits at Fiat Chrysler's North American division -- essentially, the Chrysler Group -- have helped it withstand the severe challenges faced by the Fiat side of the business in Europe and Latin America.

But even though sales in North America were up, FCA's profits in the region were down 18% in the quarter.

Why? Because Chrysler has been winning big sales gains with discounts. But FCA needs profits more than sales because of its problems elsewhere in the world.

So now, the boss wants to cut those discounts way back.

Sales are up while profits are down? Here's why.
Ram pickups are Chrysler's best-selling product in the U.S., and Ram sales have been great: up 20% in the first half of 2014, versus a 1.1% gain for General Motors' (NYSE: GM  ) Chevy Silverado and GMC Sierra twins, and a 0.5% decline for Ford's F-Series line.

But profits haven't been great, because Chrysler has been winning those sales (and others) with big incentives. According to data from TrueCar, Chrysler's average incentive payout has risen past those of its Detroit rivals over the last few months. (The three Detroit automakers tend to pay higher average incentives than other manufacturers because of their big sales of full-size pickups. Big payouts are typical in that market segment, where the average payment often exceeds $4,000 -- but despite the payouts, pickups are among Detroit's most profitable products.)

Data provided by TrueCar shows each manufacturer's average incentive payment per vehicle in the U.S. for the specified month. July numbers are TrueCar estimates. 

In a conference call for analysts following Wednesday's earnings report, Marchionne and CFO Richard Palmer were both clear: Profit margins in North America have to improve in the second half of the year, and to get that improvement, incentives and discounted leases in North America could well be rolled back.

That could bring Ram sales back to earth in a hurry. 

Why GM could be the big winner here
Ford isn't in a position to pick up (so to speak) a lot of truck sales right now. The Blue Oval is winding down production of its current F-150 before the launch of its all-new 2015 model late this year, and supplies of its mainstay pickup are expected to be tight as the year goes on. 

But General Motors, with ample supplies of its new-for-2014 pickups on hand, could be in a position to steal back the market share it has lost to the Ram over the last year. GM has tried to be conservative with its pickup incentives in an effort to boost its own profit margins in North America.

That effort has paid off for GM so far -- but a cutback by Chrysler could spur the General to try to make a big move. Stay tuned.

More from The Motley Fool: Warren Buffett Tells You How to Turn $40 into $10 Million