USA Health Care Insurance: May 2015

Sunday, May 31, 2015

Why Bank of America Is Set to Grow

Bank of America (BAC), inclusive of yesterday's poor trading, has still provided investors a 37.9% return in the last 12 months, and has recently upped its dividend after passing its Federal Stress Test in the last month.

Throughout 2014, the bank has continued to make progress in this regard. It's been settling litigation left and right, and CEO Brian Moynihan appears to continue steering the ship in the right direction. USA Today reported on recent litigation leading up to the bank's earnings:

Bank of America in March agreed to pay $9.3 billion to settle claims it marketed risky mortgages to Fannie Mae and Freddie Mac. At the same time, the bank reached a $15 million settlement with the New York State Attorney General's office over its 2009 purchase of Merrill Lynch.

And on April 9, the bank also agreed to pay $772 million in refunds and fines to settle allegations by the Consumer Financial Protection Bureau and the Office of Comptroller of the Currency that it had bilked millions of customers with deceptive credit card practices. The agreement was "in line with what we expected," bank spokesman Tony Allen said last week.

Although many people seemed to be surprised by Bank of America's earnings, there were some of us that were expecting exactly what we got: good underlying bank performance that was negatively affected by one time legal costs.

When the smoke cleared, the bank had beat on its revenue line, posting a number of $22.76 billion versus analyst estimates of $22.33 billion to $22.4 billion. Ex-items, the bank wound up earning $0.35 per share.

In addition to its legal costs, the bank saw its mortgage business — which it has been trimming over the last couple of years — slowing. Mortgage originations were down 65%.

The bank's balance sheet strength continued to improve. It had $1.4 billion in charge offs, down from $2.5 billion in the same quarter the year prior.

Some of the more important news came later on in the afternoon when it reported the bank was close to settling with the DOJ, a reason which I think is one of the reasons it bolstered its legal reserves in quarter one:

Bank of America (-2.5%) boosted legal reserves by $2.4 billion in the first quarter, and management is playing coy about why, but the WSJ says the bank is near a multi-billion dollar settlement with the DOJ to end civil probes into a number of legacy issues. The talks have been ongoing for months, but intensified, say sources, after JPMorgan late last year settled for $13 billion.

If settled, it'll surely cost the bank a significant amount of money. But, it'll be over, and that's the important part. Putting their heads down and knocking each one of these out of the way until there's none left. It may not look like it, but the bank is making significant progress in this regard.

The bank continues to get leaner and meaner under the watchful eye of Moynihan. The bank's total employees was down to 238,600 from 262,800 in the same quarter a year prior. It's also operating with 5% fewer branch locations. This is all part of a cost-cutting initiative that was put into place a couple of years ago, that is concluding during this year.

Bank of America's banking division posted a profit of $1.66 billion, as compared to $1.45 billion a year earlier. This shows underlying fundamental progress for the bank's "meat and potatoes" business.

As the bank continues to stay on the front line of the automation adoption curve in the banking sector, and continues to keep its head down and make progress, I think better days will be ahead for shareholders.

Moynihan seems to be doing a damn good job in making progress to get the bank over the hump of the '07 to '08 disaster, which was the main item he was tasked with as CEO of the bank.

I contend that BAC is a buy here. There's likely to be a couple more months of legalese headlines that could potentially mire the stock price, but in the long term, the bank's underlying business is performing. Better days are ahead for Bank of America; it just needs to hold on and wait. Moynihan has been doing a brilliant job since he began, and my trust is with him and Buffett that Bank of America will soon rise like a phoenix from the ashes.

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Thursday, May 28, 2015

Stocks To Watch For April 17, 2014

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Some of the stocks that may grab investor focus today are:

Wall Street expects Goldman Sachs Group (NYSE: GS) is estimated to report its Q1 earnings at $3.45 per share on revenue of $8.70 billion. Goldman Sachs shares rose 0.11% to $157.40 in after-hours trading.

Google (NASDAQ: GOOGL) reported weaker-than-expected first-quarter earnings. Google posted its adjusted profit of $6.27 per share on adjusted revenue of $12.19 billion. However, analysts were estimating earnings of $6.36 per share on revenue of $12.41 billion. Google shares dropped 3.26% to $545.50 in the after-hours trading session.

Analysts are expecting General Electric Company (NYSE: GE) to have earned $0.32 per share on revenue of $34.36 billion in the first quarter. GE shares slipped 0.11% to $26.09 in after-hours trading.

E. I. du Pont de Nemours and Company (NYSE: DD) is expected to report its Q1 earnings at $1.58 per share on revenue of $10.45 billion. DuPont shares gained 1.23% to close at $67.72 yesterday.

International Business Machines (NYSE: IBM) reported downbeat first-quarter revenue. IBM posted its adjusted earnings of $2.54 per share on revenue of $22.48 billion. However, analysts were projecting earnings of $2.54 per share on revenue of $22.93 billion. IBM shares tumbled 4.18% to $188.20 in the after-hours trading session.

Pepsico (NYSE: PEP) is projected to report its Q1 earnings at $0.75 per share on revenue of $12.40 billion. Pepsico shares gained 0.27% to $85.00 in after-hours trading.

Analysts expect Morgan Stanley (NYSE: MS) to report its Q1 earnings at $0.60 per share on revenue of $8.52 billion. Morgan Stanley shares declined 0.40% to $29.77 in after-hours trading.

Posted-In: Stocks To WatchEarnings News Pre-Market Outlook Markets Trading Ideas

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24/7 Wall St.: America's healthiest cities

There's no doubt that great strides have been made in Americans' health over the years. Americans smoke less, are more likely to be insured and live longer. However, significant health disparities remain across the nation, influenced by individual choices, the community and clinical care.

To determine the well-being of Americans, Gallup-Healthways surveyed hundreds of thousands of Americans in 189 metropolitan areas in the United States in 2012 and 2013. The survey recorded the physical and emotional health of the residents, as well as measuring job satisfaction and access to basic needs. The resulting Gallup-Healthways Well-Being Index allows for comparisons between places and over time.

Not surprisingly, the physical health of residents was influenced by their habits. While less than 20% of Americans surveyed were smokers, more than 34% of Charleston, W.Va., residents smoked, the most in the nation. Residents also reported among the highest rates of obesity in the country.

In America's healthier areas, on the other hand, smoking rates tended to be much lower. San Jose had the second lowest smoking rate, with just around 11% of respondents reporting a smoking habit. Obesity rates in the areas were among the lowest.

According to Dan Witters, research director for the Gallup-Healthways Well-Being Index, there is a clear relationship between poor physical health outcomes, such as obesity, and many of these habits. "When you're talking about obesity, the big three are healthy eating, exercise, and smoking."

Having access to basic needs, such as medical care, medicines, food and shelter, also appeared to play a major role in determining the physical well-being of residents. Witters explained that "providing people with a safe place to exercise" obviously plays a role in regional obesity rates. Additionally, having a personal doctor "increases the probability that they'll have a trusted professional advising them about their healthy habits."

In addition to having access to ! basic needs, a healthy state of mind made a difference in the physical health of many area-residents. In fact, half of the metro areas with the best physical health index scores were also among the least likely to report recent bouts of depression. Emotional states such as anger, stress and sadness became much less common in areas with high physical health scores as well.

Survey participants who were "clinically diagnosed with depression had a significantly elevated probability of carrying around obesity," Witters said, as well as a variety of other chronic conditions.

Poverty and financial instability can make it very difficult to stay healthy. All but one of the 10 healthiest metro areas had poverty rates considerably lower than the national rate in 2012. Seven of the least healthy metro areas, on the other hand, had poverty rates exceeding the national rate. While access to healthy food has an impact on good nutrition, Witters pointed out that poverty played a greater role.

THE LEAST-HEALTHY CITIES: Yes, 24/7 Wall St. has that list, too

Many components of staying healthy are learned. If people are poorly educated, they are less likely to know how best to care for themselves. Nine of the least healthy metro areas had college education attainment rates below the national rate. Residents of eight of the healthiest regions, conversely, were considerably more likely to have attained a bachelor's degree than Americans as a whole.

To identify the best and worst cities for physical health, 24/7 Wall St. reviewed the metropolitan areas with the best and worst scores on the Physical Health Index, part of the Gallup-Healthways Well-Being Index. The Gallup-Healthways Well-Being Index assessed 189 metropolitan statistical areas. The Physical Health Index is one of five subindices included in the groups' overall score. The index measures physical well-being for the United States, states, metropolitan areas and occupations, based on answers to a variety of questions. In addition to th! ese figur! es, we also considered income, poverty and educational attainment data from the U.S. Census Bureau, all from 2012.

AMERICA'S HEALTHIEST CITIES:

10. Washington-Arlington-Alexandria, D.C.-Va.-Md.

> Physical Health Index: 79.7
> Obesity rate: 22.2% (26th lowest)
> Blood pressure: 26.7% (47th lowest)
> Poverty rate: 8.4% (4th lowest)

Washington was one of the healthiest metro areas in the nation. Less than 18% of respondents reported health problems that prevented them from participating in age-appropriate activities, compared with more than 22% of Americans who reported such health problems. Like residents in a number of the healthiest metro areas, Washington-area residents were relatively wealthy and had especially high rates of educational attainment. A typical household earned $88,233 in 2012, more than all but one other metro area. Nearly half of adults living in the region had completed at least a bachelor's degree that year, also among the best rates nationwide. High incomes and a well-educated population likely contributed to healthy behaviors and relatively few health concerns. Less than 15% of respondents said they smoked regularly, one of the lower smoking rates in the nation.

9. San Francisco-Oakland-Fremont, Calif.

> Physical Health Index: 79.7
> Obesity rate: 19.7% (11th lowest)
> Blood pressure: 24.9% (26th lowest)
> Poverty rate: 11.9% (51st lowest)

Residents of the San Francisco metro area were among the nation's most likely to practice healthy behaviors that can promote good health outcomes. Nearly 87% of respondents said they did not smoke, the fifth highest rate in the nation. Also, more than 70.6% of respondents told Gallup they had eaten healthy all day within the past day, and nearly 63% stated they had had regularly eaten fruits and vegetables. Both were among the highest rates in the nation. As a result, residents were able to avoid a number of serious health problems. For example, relatively few res! pondents ! had been told by a doctor that they had high blood pressure or cholesterol. Also, less than 20% of respondents surveyed were obese, among the lowest rates in the nation. By keeping their cholesterol, blood pressure and weight under control, residents were also able to avoid more serious consequences. Respondents were less likely than Americans in most metro areas to indicate they had previously suffered a heart attack or that they were diabetic.

MORE: Ten cities where people can't find work

8. Minneapolis-St. Paul-Bloomington, Minn.-Wis.

> Physical Health Index: 79.8
> Obesity rate: 22.7% (31st lowest)
> Blood pressure: 22.7% (9th lowest)
> Poverty rate: 10.7% (24th lowest)

Residents of the Twin Cities area were among the most likely to say they had access to basic needs that could promote good health. More than 95% of respondents said they had a safe place to exercise, and more than 90% said they had health insurance, both among the highest rates in the nation. Respondents' good health also gave them enough energy to get things done, and a large number noted that their health did not prevent them from participating in their usual activities. Residents from the Minneapolis-St. Paul metro area were quite wealthy, and therefore likely better able to afford medicine, healthy food and medical care. Median household income was more than $66,000 in 2012, among the highest in the nation, and just 10.7% of people lived below the poverty line, versus almost 16% nationwide.

MORE: Cities with the most content (and miserable) workers

7. Denver-Aurora, Colo.

> Physical Health Index: 79.8
> Obesity rate: 19.3% (6th lowest)
> Blood pressure: 22.2% (7th lowest)
> Poverty rate: 12.7% (tied for 66th lowest)

A low obesity rate was one major reason the Denver metro area was one of the nation's healthiest. Less than one in five Denver-area residents were considered obese, considerably lower than the more than one in four of all Ameri! cans. Acc! ording to a recent article from The Guardian, Denver is a "fitness mecca," with a well-established biking infrastructure and exercise culture. Unsurprisingly, residents of the Denver area were more likely than the vast majority of Americans to exercise on a regular basis, with more than 57% reporting 30-minute exercise sessions at least three times weekly. Regular exercise cannot only limit obesity, but also promotes overall physical health. The region also had one of America's lowest poverty rates, with less than 13% living under the poverty line. Poverty is linked to poor health outcomes because residents with low incomes often lack health education and the resources needed to afford healthy food, medicine and care service.

MORE: America's most content (and miserable) cities

6. Lafayette, La.

> Physical Health Index: 79.9
> Obesity rate: 28.1% (66th highest)
> Blood pressure: 28.8% (84th lowest)
> Poverty rate: 17.9% (127th highest)

The Lafayette metro area had some of the nation's healthiest residents despite their unhealthy choices. Just 43.4% of respondents said they exercised regularly, the worst rate in the nation. People in Lafayette were also less likely than Americans nationwide to eat healthy foods and more likely to smoke. Despite their behaviors, residents were among the most likely Americans to report feeling well-rested and to say they were able to participate in age-appropriate activities. Only 9.2% of respondents had asthma, among the lowest rates in the nation. Still, the high rate of smoking may pose problems for residents who are asthmatic. The Centers for Disease Control and Prevention identifies tobacco smoke as one of the leading triggers for asthma attacks.

MORE: America's most (and least) literate cities

5. Madison, Wis.

> Physical Health Index: 79.9
> Obesity rate: 20.8% (16th lowest)
> Blood pressure: 22.0% (6th lowest)
> Poverty rate: 12.7% (tied for 66th lowest)

Madison area residents! were amo! ng the most likely Americans to say they had access to basic needs that could promote good health. Nearly 90% of respondents said they had enough money for health care, medicine and food in the past 12 months, more than in any other metro area. Good access to basic needs, alongside limited poverty and a well-educated population, all likely contributed to the good physical health of area residents. Madison residents were among the least likely to have been diagnosed with diabetes — just 7.2% said they were diabetic compared with more than 11% of all Americans. And only 2.2% of respondents said they had been told by a doctor that they suffered from a heart attack, versus nearly 4% nationwide.

MORE: Nine cities where wealth is soaring

4. Naples-Marco Island, Fla.

> Physical Health Index: 80.0
> Obesity rate: 16.5% (2nd lowest)
> Blood pressure: 31.3% (55th highest)
> Poverty rate: 13.8% (91st lowest)

Respondents from Naples were among the most likely people surveyed by Gallup to note that they felt well-rested and had enough energy to get things done, both indicators of good physical health. Another major reason the area was rated so well for physical health was the low obesity rate. Just 16.5% of those surveyed said they were obese, the second lowest rate in the nation. People also often indicated they practiced healthy behaviors that contribute to lowered obesity rates, such as eating well and not smoking. Three-fourths of people surveyed said they had consistently eaten healthy food within the past day.

MORE: Cities with highest (and lowest) taxes

3. Charlottesville, Va.

> Physical Health Index: 80.1
> Obesity rate: 18.7% (4th lowest)
> Blood pressure: 27.4% (64th lowest)
> Poverty rate: 13.9% (98th lowest)

Residents of the Charlottesville metro area were the least likely to report health problems that prevented them from participating in age-appropriate activities. Nearly 85% of respondents said they were able! to do wh! at similarly aged peers normally did, the most in the nation. Also, less than 19% of respondents were considered obese, one of the lowest rates in the nation, and recurring pain was also relatively infrequent. Both obesity and recurring pain are factors that can potentially limit people's ability to participate in age-appropriate activities. Emotional well-being may have also contributed to the area's overall good state of health. Respondents were less agitated by and large — more than nine in 10 survey participants said they were not angry at all in the past 24 hours, better than residents of all but two other metro areas.

MORE: The best (and worst) paying cities for women

2. San Jose-Sunnyvale-Santa Clara, Calif.

> Physical Health Index: 80.6
> Obesity rate: 19.5% (8th lowest)
> Blood pressure: 23.6% (13th lowest)
> Poverty rate: 10.8% (28th lowest)

Healthy behaviors likely contributed to the good state of health in the San Jose region. Barely 10% of area inhabitants identified themselves as smokers, less than in all but one other metro area. Nearly 80% said their health did not keep them from going about their day-to-day lives, the best rate nationwide. The area's median household income of $90,737 in 2012 was the highest nationwide, and its poverty rate of 10.8% was among the lowest. Higher incomes likely helped residents take better care of their health. More than 75% of respondents said they had visited a dentist within the past 12 months — also among the highest proportions in the United States.

MORE: Ten U.S. cities where violent crime is soaring

1. Holland-Grand Haven, Mich.

> Physical Health Index: 80.9
> Obesity rate: 23.4% (44th lowest)
> Blood pressure: 23.9% (17th lowest)
> Poverty rate: 11.3% (37th lowest)

Holland area residents exercised less than the majority of Americans. They were also less likely to eat healthy all day compared to most Americans. Despite unhealthy habits, however, Holland ! metro are! a residents were the nation's healthiest. Nearly nine in 10 survey participants said they had enough energy to get things done the day before, better than in all but a handful of metro areas. Also, proportionally fewer respondents suffered from chronic pain than respondents nationwide did. Just 24% reported recurring neck or back pain, compared with more than 30% nationally. And less than one in five survey participants said they had regular knee or leg pain, also nearly the lowest rate in the nation. Like many of the cities with the best health, the Holland area's poverty rate was significantly lower than the national rate.

24/7 Wall St. is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

Wednesday, May 27, 2015

Cisco Earnings Don't Tell the Whole Story

A slight earnings beat apparently wasn't good enough for Wall Street, which nudged Cisco (Nasdaq: CSCO) stock down more than 4% in after-hours trading.

Even an increase in the quarterly dividend by $0.02 a share, to $0.19, wasn't enough to deter the bears. Cisco's yield will rise to about 3.3%.

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The maker of networking gear announced results after the market closed Wednesday and said it earned $0.47 cents a share in its fiscal second quarter, just barely beating expectations for $0.46 cents a share.

Revenue was $11.2 billion, also slightly higher than the $11.04 billion that analysts had forecast.

Investors were disappointed despite the beat because both numbers represent declines from the year-ago numbers.

Still, it would be a mistake to underestimate the veteran tech giant. Cisco is very much a company in transition right now, with an eye toward the future.

"We delivered the results we expected this quarter," chairman and Chief Executive Officer John Chambers said. "I'm pleased with the progress we've made managing through the technology transitions of cloud, mobile, security and video. Our financials are strong and our strategy is solid. The major market transitions are networking centric and as the Internet of Everything becomes more important to business, cities and countries, Cisco is uniquely positioned to help our customers solve their biggest business problems."

Granted, Cisco faces some serious challenges right now.

In addition to weakness in emerging markets, which the company acknowledged last year, rivals Juniper Networks Inc. (NYSE: JNPR) and F5 Networks, Inc. (Nasdaq: FFIV) have been nibbling at Cisco's market share.

What's more, Cisco faces an even bigger threat on the horizon: software-defined networks (SDNs) that offer a cheaper alternative to the hardware-based networking equipment that is Cisco's bread-and-butter.

Finally, Cisco is still trying to fight its way out of "laggard" status. The world's most valuable company by market capitalization in the late 1990s, Cisco stock went flat after the dot-com bubble burst and has been searching in vain for growth ever since.

And yet, with all those headwinds, Cisco stock hasn't reacted as one would expect...

Why Cisco (Nasdaq: CSCO) Stock Hasn't Collapsed - But Will Go Higher

Over the past month, Cisco stock is up 2.58%, closing at $22.85 Wednesday. And over the past year, Cisco stock is up 8.7% (although down somewhat from its 52-week high of $26.49).

If Cisco's business is in such trouble, why hasn't the stock collapsed?

Note: For all the potential in tech, two sectors stand out as the best bets to generate triple and quadruple-digit gains. These sectors are just hitting their stride...

Chambers touched upon the answer in his comments. It's true that Cisco's traditional business is under pressure. But company management realizes what's happening and is moving toward taking advantage of the new opportunities created by the changes in the tech landscape.

Over the past year, Cisco has made several key acquisitions to allow it to move into such areas as the cloud (Meraki), SDNs (Cariden), and cybersecurity (Sourcefire), which not only offer growth but higher margins than its traditional business of networking hardware.

The combination of these acquisitions and the slow erosion of Cisco's old business have taken a toll on the company's profits, as we can see in today's earnings, and may see for the next couple of quarters.

Nevertheless, it's a promising strategy, even if it takes a year or two to pay off. At least Cisco management realized that sitting still was a death sentence and has taken aggressive action.

With Cisco stock under pressure in the short term, investors should consider this a buying opportunity.

With a P/E of just 12.4, and a forward P/E of just under 11, Cisco stock is already in bargain territory.

Once the company's strategy kicks in, the higher margins and better cash flow will start to be reflected in the earnings. And that will start nudging Cisco stock higher.

"The financial model remains strong, and the new products could add upside," Brian Marshall at ISI Group recently told Barron's. "At this price, the stock has more upside potential than downside."

Can #Cisco make a comeback, or is it "dead money"? Voice your opinion on Twitter @moneymorning or Facebook.

With e-commerce booming in China, investors are eyeing a planned IPO for Alibaba, the Chinese version of Amazon.com, which is expected later this year. But there's actually a much more profitable way to tap into this trend before the Alibaba IPO...

Monday, May 25, 2015

New York Times earnings fall on lower ad sales

The New York Times Co. said Thursday its fourth quarter net income fell due to lower advertising sales, a hike in growth strategy investment and the absence of a sales gain that was recorded a year ago.

Its fourth quarter net income totaled $65.6 million vs. $178.1 million in the October-December period in 2012. But in the year-ago period, the company recorded a $164.6 million gain on the sale of its ownership interest in job site Indeed.com.

Shares of The New York Times Co. rose 5.1% Thursday morning to $14.55.

Fourth quarter advertising sales declined 6.3% to $212 million. There was one extra week of business in the year-ago period. If the week were excluded in the comparison, advertising revenue would have been down 1%.

Circulation revenue fell 3.9% to $207.6 million. Excluding the extra week, it would have risen 2.7% as more customers bought its digital packages and higher print home-delivery prices helped offset a decline in print copies sold, the company said.

About 33,000 net digital subscribers were added, outpacing the growth rates seen in the second or third quarters.

Total quarterly revenue fell 5.2% to $443.8 million. It would have grown "slightly year-over-year" had it not been for the extra week in 2012, the company said.

For the entire year, its revenue declined 1.1% to $1.57 billion. Net income fell 52% to $65.1 million.

Sunday, May 24, 2015

Wall Street eyes a breather after rally

NEW YORK (MarketWatch) — U.S. stock futures straddled the flat line on Friday, indicating Wall Street may try to catch its breath after a rally that saw the Dow Jones Industrial Average post its 50th record close of the year in the previous session.

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Futures for the Dow Jones Industrial Average (DJH4) rose 9 points to 16,431, while those for the S&P 500 index (SPH4) were nearly unchanged at 1,837.

Futures for the Nasdaq 100 index (NDH4) gained 0.25 point to 3,582.

Wall Street stocks rallied on Thursday, extending a record run on the heels of a sharp fall in weekly jobless claims. The Dow industrials (DJIA) surged 122.33 points, or 0.8%, to 16,479.88, for its 50th record close this year. The S&P 500 (SPX) rose 0.5% to nab its 44th record close of 2013.

Twitter (TWTR) reached its highest level ever, soaring more than 76% this month, though shares were largely flat in premarket trading.

Dan Greenhaus, chief strategist with BTIG, said in a note that the gains for markets overall have been largely down to seasonal effects.

Reuters

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But he said social-media firms have not been the only big beneficiaries, noting shares of Oracle Corp. (ORCL) are up 7% for the month, while steel companies are higher by 5%, chemical firms by 3%, and machinery names by almost 6%.

"Importantly, all this comes as the economic data is getting better…and interest rates move higher," said Greenhaus, alluding to the fact that the 10-year bond yield hit 3% on Thursday for the first time since September. The yield gained 2 basis points on Friday to 3.014%.

"While it appears [there is] nothing technically important about a 3% 10-year yield, it will get attention, but that is hardly any more economically damaging than 2.99%," Greenhaus said.

Among specific names, shares of Cessna maker Textron (TXT) could gain after the company said it would pay $1.4 billion to buy U.S. plane maker Beechcraft Corp.

Shares of WPCS International Inc. (WPCS) were up 40% in thin premarket trading. The company said Thursday that one of its units released a software platform for bitcoin traders.

European markets reopened from a two-day Christmas break to push higher — the Stoxx Europe 600 index (XX:SXXP) gained 0.6%.

The Shanghai Composite (CN:SHCOMP) outperformed other Asian markets as fear of stress in the country's money market eased. The Nikkei 225 index (JP:NIK) retreated from a six-year high after data showed consumer prices rising higher than expected —1.2% on-year in November, above the 1.1% that had been forecast.

Gold prices drifted lower and oil was flat, but the dollar was pulling back across the board.

Thursday, May 21, 2015

Stocks Hitting 52-Week Lows

Enzon Pharmaceuticals (NASDAQ: ENZN) shares tumbled 28.28% to reach a new 52-week low of $1.15. Enzon Pharmaceuticals shares have dropped 63.30% over the past 52 weeks, while the S&P 500 index has gained 28.75% in the same period.

Silvercorp Metals (NYSE: SVM) shares fell 1.30% to touch a new 52-week low of $2.19. Silvercorp's PEG ratio is 5.18.

Bancolombia SA (NYSE: CIB) shares touched a new 52-week low of $47.94. Bancolombia's trailing-twelve-month ROA is 1.45%.

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

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Wednesday, May 20, 2015

Lamborghini hatches next supercar, Huracan

It's been a wonderful run for the Lamborghini Gallardo, but now the brand thinks it has come up with a worthy successor: the Huracan.

The official rollout of the Huracan won't come until the Geneva Motor Show next year, with first deliveries in the spring, but as 2013 rolls to a close, Lambo officials apparently wanted the world to see what the future holds.

Huracan will be powered by a new 5.2-liter V-10 engine that delivers 610 horsepower. It has a rare combination of both direct and indirect gas injection aimed at optimal performance and better fuel economy compared to the Gallardo engine. The engine is combined with a seven-speed dual-clutch transmission.

That engine/transmission combination, along with the car's low weight and aerodynamics, should result in a top speed just over 200 miles per hour. With its computer-controlled all-wheel-drive system, powering from zero to 62 miles per hour should take a mere 3.2 seconds. To 124 miles per hour (200 kilometers per hour): a lickity-split 9.9 seconds. The car will automatically shut off the engine at stop lights, so-called start-stop technology to further save gas.

Like other Lamborghinis, Huracan is named for a famous fighting bulls.

"The fighting bull Huracán of the Spanish Conte de la Patilla breed was known for his outstanding courage and strong sense of attack. He fought in Alicante in August 1879, showing his unrelenting character and remaining defiant and invincible, thus entering into the legend of fighting bulls' history," Lamborghini writes.

Huracan has a tough act to follow. Gallardo ([pronounced gay-YAR-doe) was the most successful Lambo ever. Over a decade, 14,022 were made.

Tuesday, May 19, 2015

Appleâ€™s Share Slipped as 251 Million Smartphones Shipped in Third Quarter

Global shipments of smartphones grew 45% year-over-year in the third quarter of 2013 to a record 251 million units. The quarter also marks the first time total shipments topped a quarter billion.

Samsung Electronics topped the list with a record 88.4 million units shipped and a record 35% market share. Apple Inc. (NASDAQ: AAPL), which reported earnings earlier Monday afternoon, reported sales of 33.8 million units and market share of 13%. Huawei Technologies shipped 12.7 million units to retain the third largest share of the market with a 5% share.

Both Samsung and Huawei market share in the quarter compared with the same quarter in 2012. Apple's share slipped from nearly 16% a year ago to 13% this year. Apple's volume grew by 26% year-over-year, while Samsung's shipment volume rose by 55% and Huawei's volume grew 67%.

The data comes from research firm Strategy Analytics' Wireless Smartphone Strategies service and is published on the company's blog.

The only other companies named in the results were LG Electronics and Lenovo. Once-powerful industry leaders Nokia Corp. (NYSE: NOK) and BlackBerry Ltd. (NASDAQ: BBRY) are lumped together in the "Others" category. Neither has a market share above Lenovo's 4.3%.

The following chart from Strategy Analytics tells the tale:

STratAnaly-10-28-13-smrtphn ships

Wednesday, May 13, 2015

Slowly But Surely, the Tide's Turning For Vringo (VRNG)

Just for the record, I can't stand Vringo, Inc. (NASDAQ:VRNG). I've never agreed with its business model - litigation of patents that in retrospect probably shouldn't have been granted in the first place - and the investor hype that VRNG has surrounded itself with has largely obscured the truth and reality of its pivotal court case with Google (NASDAQ:GOOG).... a case that is now in post-verdict review, as the judge decides just how much money should be awarded. Yet, despite the fact that I'm anything but a fan of the company, I've got a funny feeling the stock's just a few days away from a major rally.

As those who've been following the Vringo story know all too well, though, there's more to it than just that, and "due process" has become something of a gray area as the matter finds itself in the middle of the court system, the U.S. patent office, and common sense. With all three forces already being blurred about where they stand, being caught in the middle of all three has just been absolutely maddening for Vringo, Inc.

Unlike most of the amateur journalists - and also probably shareholders - I don't come here to preach the merits of Vringo. Like I said above, I've found myself in the anti-Vringo camp more often than not. BUT, also like a said above, I've got a sneaking suspicion VRNG shares are on the verge of a monster-sized bullish move.

It's the shape of the chart that leads me to that conclusion. Slowly but surely, the post-verdict lull [the verdict from the suit against Google was handed down in October] has quietly been building into an uptrend. Actually, scratch that last statement. It's not an uptrend yet. I think it's going to be one soon, though. Here's why.

As you can see, since April, VRNG has made a string of higher lows. As you can also see, since March, Vringo shares have tested the 200-day moving average line (green) several times. Each brush of the 200-day average has promptly pushed the stock lower again. Additionally, as of this month, the stock's 20-day moving average line (blue) has crossed back above the 100-day (gray) and 50-day (purple). In fact - and this is the clincher - it looks like the stock is now, finally, finding support at those shorter-term moving average lines. The final clue we need is a move above the 200-day moving average line at $3.22, but given several months' worth of build-up, I'm pretty certain we'll get it. And once we do, it's off-to-the-races. Take a look.

Critics will be quick to point out that charts don't matter - fundamentals do. And in the case of Vringo, it's not even like the fundamentals matter, since there are none. The only thing really driving this stock is the promise of future settlements, or jury-awarded cash. I'll just say this - Vringo Inc. is one of those cases where the hype and buzz and speculation surrounding the stock has become far bigger than the company itself. In those rare cases, the chart reflects the ever-changing opinion of the stock's potential. Since it's opinion that's ultimately driving the stock's price, though, the chart suggests how public opinion is taking shape.... and will take shape in the future. (Sadly, human behavior is pretty predictable. This chart just puts that opinion on an X and Y axis, and shows us the brewing trend.)

Bottom line? If you wanted to take a swing on a long VRNG position, the odds are looking in your favor right now. If you wanted to wait until Vringo Inc. shares crossed above the 200-day moving average line - a reasonable reassurance - that would leave a little money on the table, but would reduce your risk quite a bit. Either way, the breakout's been brewing for a while, and I've got a feeling it's going to boil over soon... bullishly.

If you'd like to receive more trading ideas and analysis like this one, sign up for the free SmallCap Network e-newsletter today.

Tuesday, May 12, 2015

New BlackBerry buyout rumors include Google and Samsung

How BlackBerry fell so fast NEW YORK (CNNMoney) Who isn't on the list of rumored potential BlackBerry suitors that surfaced this weekend?

Two weeks after limping-along BlackBerry received a preliminary $4.7 billion buyout offer from Fairfax Financial, a new Reuters report says the list of possible suitors has expanded significantly.

According to the Friday report, potential buyers of all or part of BlackBerry include Google (GOOG, Fortune 500), Cisco (CSCO, Fortune 500), SAP (SAP), Intel (INTC, Fortune 500), LG, Samsung and private-equity firm Cerberus Capital.

Even if the rumors prove to be true, it's unclear if those companies are really interested in buying BlackBerry. The company wants "preliminary expressions of interest" by early next week, Reuters noted. But it's possible that the two sides are simply testing the waters.

Shares of BlackBerry (BBRY) gained about 4% on the news.

BlackBerry wouldn't confirm the rumors, saying simply that the company "is conducting a robust and thorough review of strategic alternatives."

Related story: BlackBerry's bleak quarterly results

An actual offer from one of these companies would put BlackBerry on much firmer ground, given that the announcement from Fairfax sparked a lot of skepticism. Fairfax's "offer" was really just a preliminary letter of intent to buy BlackBerry, and Fairfax hasn't received any financial backing for a deal. Cynics think Fairfax is simply trying to draw in other offers and cash out its 10% BlackBerry stake.

BlackBerry's appeal to a Google or a Samsung likely lies in its patent portfolio, which experts value at about $2 billion to $3 billion. Such patents are advantage in the competitive and highly litigious world of smartphones -- just look at the never-ending Apple (AAPL, Fortune 500) v. Samsung lawsuits -- though BlackBerry's patents generally aren't considered as essential as those in the portfolios of its rivals. Still, those patents could give BlackBerry a much-needed lifeline.

Sunday, May 10, 2015

This REIT Just Raised Its Dividend 40% -- Is More To Come?

U.S. companies are sitting on a total of more than $1 trillion in cash, but many are being rather stingy with their dividend payouts while they wait to see how the economic recovery progresses.

There is one company, however, whose management was confident enough to boost its dividend payment recently by 40%. This real estate investment trust (REIT) has raised its third-quarter dividend to 28 cents a share, which makes for a 4% annual yield.

With 40 hotel properties and 10,600 rooms in the U.S., this REIT caters to the upscale business travel and leisure travel markets, which have slowly begun to recover from the recession. The REIT looks for markets where there are barriers to entry, making it difficult to build new properties, as well as those where demand is robust, which allows it to charge profitable rates on its hotel rooms.

The REIT gets 90% of its earnings from nine of the U.S.' largest and best-known metro markets, and its hotels are managed by such well-known operators as Kimpton, Westin, Starwood (NYSE: HOT) and Hyatt Hotels (NYSE: H). The REIT I'm talking about is LaSalle Hotel Properties (NYSE: LHO).



	Flickr/Runneralan2004
	After backing out renovation expenses at its Park Central Hotel in New York, LaSalle's RevPAR grew 6.7%.

LaSalle's revenue rose 8.5% in the second quarter from the same period last year, and its revenue for the first half of 2013 rose about 10% from the first six months of last year. The REIT's funds from operations (FFO) per share -- a measure of earnings that accounts for a REIT's real-estate-heavy portfolio -- was also up more than 10% in the second quarter and more than 20% for the first half of the year.

Perhaps more importantly, the REIT -- whose profit margin was a healthy 37% -- saw its revenue per available room (RevPAR) rise 0.9% in the second quarter as hotel occupancies went up, allowing LaSalle to get better rates for its rooms. After backing out renovation expenses at its Park Central Hotel in New York, however, LaSalle's RevPAR grew 6.7%, which may be more indicative of its revenue growth going forward.

Over the past five years, LaSalle has seen its hotel revenue grow from $587 million in 2008 to $862 million, with earnings per share rising nearly ninefold, from 6 cents to 52 cents. The company has forecast FFO of up to $2.23 a share for the year, making for a price-to-earnings ratio of about 11.5.

Risks to Consider: The hotel sector is very competitive, and demand for rooms could cool if the economy falters again. LaSalle has taken on debt on which interest rates could go up, which could cut down on its profits even though it uses hedges to ward off this risk.

Action to Take --> REITs are required to pay as much as 90% of their income to shareholders, so there is a good possibility of higher dividend payments for LaSalle's owners. There is also some upside on the stock as the REIT continues to grow. Because construction activity was down during the recession, fewer hotel rooms coming online as demand is going up, so the REIT is anticipating a favorable environment for the near term.

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