With shares of Southwest Airlines (NYSE:LUV) trading around $21, is LUV an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Letâ€™s analyze the stock with the relevant sections of our CHEAT SHEET investing framework.
T = Trends for a Stock’s Movement
Southwest Airlines is a passenger airline that provides scheduled air transportation in the United States. Consumers and companies across the nation are now looking to travel at an increasing rates, and since air travel is quicker and is becoming less expensive, it is becoming a common transportation method for many. As costs decrease and flights become more efficient, look for business and retail customers to fly at rising rates. Southwest Airlines stands to see soaring profits as consumers and businesses look to travel more than ever.
Southwest Airlines is expanding beyond the continental United States with flights to the Caribbean beginning July 1.Â The airline began selling tickets on Monday for flights to Aruba, the Bahamas, and Jamaica from Atlanta, Baltimore, and Orlando. Those routes are currently flown by AirTran Airways, which Southwest bought in 2011.Â Southwest carries more passengers in the United States than any airline, but among the largest U.S. carriers, it alone doesn’t fly beyond the nation’s borders. Southwest has been talking about going international for years, but it’s been held back by technological limits to its reservations system, which it has been upgrading.
Best Stocks For 2014: SPDR Dow Jones Industrial Average ETF Trust (DIA)
Diamonds Trust, Series 1 (the Trust) is a unit investment trust. The Trust was created to provide investors with the opportunity to purchase units of beneficial interest in the Trust representing proportionate undivided interests in the portfolio of securities consisting of substantially all of the component common stocks, which comprise the Dow Jones Industrial Average (the DJIA). The Trustâ€™s objective is to provide investment results that, before expenses, generally correspond to the price and yield performance of the DJIA.
The Trust’s holdings consist of the 30 stocks in the DJIA, which is designed to capture the price performance of 30 United States blue-chip stocks. The Trust ended its fiscal year on October 31, 2007, with a 12-month return of 17.72% on net asset value as compared to the DJIA return of 17.94%. As of October 31, 2007, some of the Trustâ€™s investments included 3M Co., Alcoa, Inc., Altria Group, Inc., American Express Co., American International Group, Inc., AT&T, Inc., Boeing Co., Caterpillar, Inc., Citigroup, Inc. and Coca-Cola Co.
- [By Wallace Witkowski]Exchange-traded funds following the S&P 500 and the Dow also saw a big jump with the number of shorts in the SPDR S&P 500 ETF (SPY) Â and the SPDR Dow Jones Industrial Average ETF (DIA) both growing more than 8% over the past two weeks to 29% and 19% of outstanding shares, respectively.
- [By Editor , ETFChannel.com]According to the ETF Finder at ETF Channel, CAT makes up 3.78% of the SPDR Dow Jones Industrial Average ETF (DIA) which is trading lower by about 0.7% on the day Friday.
- [By Wallace Witkowski]After hours, Turkeyâ€™s central bank hiked overnight rates, causing the Turkish lira to jump and market ETFs to rally. Both the SPDR Dow Jones Industrial Average ETF (DIA) Â and SPDR S&P 500 Index (SPY) Â were up 0.4% following the announcement.
Best Stocks For 2014: BNP Paribas SA (BNP)
BNP Paribas SA is a France-based bank group with four core businesses: Retail Banking, Corporate & Investment Banking, Investment Solutions and Other Activities. Retail Banking comprises the French retail banking division, Banca Nazionale del Lavoro in Italy, BeLux Retail Banking, Europe-Mediterranean, all BNP Paribas Group retail banking businesses out of Euro Zone: in the United States, in Asia, in the Mediterranean Basin and Africa, in Turkey, Central and Eastern Europe, personal finance and equipment solutions. The Corporate & Investment Banking business provides to its clients financing, advisory and capital markets services. The Investment Solutions division offers private banking, asset management, securities services, real estate and insurance services. In November 2013, the Company launched ‘Hello Bank!’, a mobile, digital bank operating in France, Belgium and Germany. Advisors’ Opinion:
- [By Namitha Jagadeesh]BNP Paribas SA (BNP), Societe Generale SA (GLE) and Credit Agricole SA (ACA), Franceâ€™s largest banks by market value, reported second-quarter profit that exceeded analystsâ€™ estimates. Paris-based Societe Generale, which said income more than doubled from a year earlier, trades at 10.8 times projected earnings, 64 percent below its 2009 high. Credit Agricole trades at 8.6 times projected profit and BNP Paribas at 10.7 times, according to data compiled by Bloomberg.
Best Stocks For 2014: Prestige Brand Holdings Inc.(PBH)
Prestige Brands Holdings, Inc., together with its subsidiaries, engages in marketing, selling, and distributing over-the-counter healthcare and household cleaning products primarily in North America. The company?s Over-The-Counter Healthcare segment offers a portfolio of OTC products under nine core OTC brands, including Chloraseptic sore throat remedies, Clear Eyes eye drops, Compound W wart removers, Dramamine motion sickness products, Efferdent and Effergrip denture products, Little Remedies pediatric healthcare products, Luden’s cough drops, PediaCare pediatric healthcare products, and The Doctor?s brand of oral care products. This segment also provides other significant brands that include Dermoplast first-aid products, Murine eye and ear care products, NasalCrom allergy relief product, New-Skin liquid bandage, and Wartner wart removers. Its Household Cleaning segment markets household cleaning products, such as abrasive and non-abrasive tub and tile cleaner, scrubb ing pads and sponges, dilutables, anti-bacterial hard surface spray for counter tops, and glass cleaners under the Comet, Chore Boy, and Spic and Span brands. Prestige Brands Holdings distributes its products through various retail channels, including drug, food, dollar, and club stores, as well as supermarkets and mass merchandisers. The company was founded in 1996 and is headquartered in Irvington, New York.
- [By Sean Williams]What: Shares of Prestige Brands (NYSE: PBH ) , a marketer of over-the-counter health care and household cleaning products, jumped as much as 14% after it announced the acquisition of Australia’s Care Pharmaceuticals.
- [By Eric Volkman]Prestige Brands (NYSE: PBH ) is reaching to the other side of the world for its latest acquisition. The company announced that it has purchased the privately held Care Pharmaceuticals, based in New South Wales, Australia. The terms of the deal were not disclosed, although Prestige Brands did admit that it would be funded by monies drawn from an existing credit facility combined with cash on hand.
- [By Seth Jayson]Calling all cash flows
When you are trying to buy the market’s best stocks, it’s worth checking up on your companies’ free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That’s what we do with this series. Today, we’re checking in on Prestige Brands Holdings (NYSE: PBH ) , whose recent revenue and earnings are plotted below.
- [By Ben Levisohn]Castor believes the cash has disappeared into working capital, which has grown from 23% to more than 50% since 2008. Comparable company PrestigeÂ Brand (PBH) uses 11%; UnileverÂ (UL) and Colgate-PalmoliveÂ (CL) far less.
Best Stocks For 2014: Taubman Centers Inc (TCO)
Taubman Centers, Inc. (TCO), incorporated November 21, 1973, operates as a self-administered and self-managed real estate investment trust (REIT). The Taubman Realty Group Limited Partnership (TRG) is a subsidiary of TCO that owns direct or indirect interests in all of its real estate properties. The Company owns, leases, acquires, disposes of, develops, expands and manages regional and super-regional shopping centers and interests therein. As of December 31, 2012, the Company owned a portfolio of 24 urban and suburban shopping centers in 12 states. The consolidated Businesses consist of shopping centers and entities that are controlled by ownership or contractual agreements, The Taubman Company LLC (Manager), and Taubman Properties Asia LLC and its subsidiaries (Taubman Asia). In December 2012, it acquired additional 49.9% (100% in total) interest in International Plaza, located in Tampa, Florida. Also in December 2012, it acquired additional 25% (50% in total) interest in Waterside Shops. In January 2014, Taubman Centers Inc announced the completion of the sale of land owned by Taubman in Syosset, New York, and Taubman’s interest in Arizona Mills to Simon Property Group.
The Companyâ€™s centers are located in metropolitan areas, including Charlotte, Dallas, Denver, Detroit, Los Angeles, Miami, Nashville, New York City, Orlando, Phoenix, San Francisco, Tampa, and Washington, D.C. The centers range in size between 236,000 and 1.6 million square feet of gross leasable area (GLA) and between 186,000 and 646,000 square feet of Mall GLA. Of the 24 centers, 18 are super-regional shopping centers. The Companyâ€™s centers have approximately 3,000 stores operated by their mall tenants under approximately 850 trade names. The centers have 65 anchors, operating under 14 trade names. The centers lease over 95% of leased Mall GLA to national chains, including subsidiaries or divisions of Forever 21 (Forever 21, For Love 21, XXI Forever, and others), The Gap (Gap, Gap Kids, Baby Gap, Banana Republic, Old Navy, and others), and Limited Brands (Bath & Body Works/White Barn Candle, Pink, Victoria’s Secret, and others).
- [By Rich Duprey]Shopping-mall operatorÂ Taubman CentersÂ (NYSE: TCO ) Â announced yesterdayÂ its second-quarter dividend of $0.50 per share, the same rate it paid last quarter after raising the payout 8%, from $0.4625 per share.
Best Stocks For 2014: Signet Jewelers Limited(SIG)
Signet Jewelers Limited operates as a specialty jewelry retailer in the United States, the United Kingdom, the Republic of Ireland, and the Channel Islands. The company retails jewelry, watches, and associated services. As of January 28, 2012, it operated a network of 1,318 stores in 50 states in the United States that trade nationally in malls and off-mall locations as ?Kay Jewelers?, and regionally under various mall-based brands, as well as operated as destination superstores under the ?Jared The Galleria Of Jewelry? trade name. The company also operated a network of 535 stores in the United Kingdom, including 14 stores in the Republic of Ireland and 3 in the Channel Islands under the ?H.Samuel?, ?Ernest Jones?, and ?Leslie Davis? trade names in high street locations and shopping malls. Signet Jewelers Limited was founded in 1950 and is based in Hamilton, Bermuda.
- [By John Kell]Signet Jewelers Ltd.(SIG) agreed to buy smaller rival Zale for about $690 million, significantly expanding the jewelry retailer’s presence in North America. Signet will offer $21 in cash for each Zale share, representing a 41% premium over Tuesday’s closing price. Zale shares jumped to $20.87 premarket and Signet climbed 12% to $88.40.
- [By Jake L’Ecuyer]Top Headline
Signet Jewelers (NYSE: SIG) announced its plans to buy Zale (NYSE: ZLC) for around $690 million. Signet will pay $21 per share to acquire Zale, representing a 41% premium to Zale’s closing price of $14.91 on Tuesday.
Best Stocks For 2014: Alexion Pharmaceuticals Inc.(ALXN)
Alexion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of biologic therapeutic products for treating patients with severe and life-threatening disease states in the United States, Europe, Latin America, Japan, and the Asia Pacific. It focuses on developing products for the treatment of diseases in the areas of hematology, nephrology, neurology, ophthalmology, and cancer. The company develops and commercializes Soliris (eculizumab), a therapeutic product for the treatment of patients with paroxysmal nocturnal hemoglobinuria (PNH), a blood disorder. It also conducts various Phase II clinical trail programs on Soliris for its usage for the treatment of cold agglutinin disease; atypical hemolytic uremic syndrome; presensitized renal transplant; kidney transplant for catastrophic antiphospholipid syndrome; ABO incompatible renal transplant; dense deposit disease; myasthenia gravis; neuromyelitis optica; and dry a ge-related macular degeneration. In addition, the company conducts Phase IV clinical trails on Soliris for its usage for the treatment of PNH registry; and Phase I clinical trails on Samalizumab for the treatment of oncology diseases, such as chronic lymphocytic leukemia and multiple myeloma. Alexion Pharmaceuticals, Inc. serves specialty distributors and specialty pharmacies, which supply physician office clinics, hospital outpatient clinics, infusion clinics, or home health care providers; government agencies; and hospitals, hospital buying groups, pharmacies, other healthcare providers, and distributors. The company was founded in 1992 and is headquartered in Cheshire, Connecticut.
- [By Ben Levisohn]Just after the open, Gilead was up 0.7%. Then the selling started, slowly at first. By noon it was down 0.5%; by 1 p.m. it was off 2.3%. By 2:34 p.m., Gilead was off 4.1% at $79.49, and the iShares NASDAQ Biotechnology Index (IBB) had dropped 2.5% to $261.60, despite Biogen IdecÂ (BIIB) getting upgraded by BMO Capital Markets and Barclays touting Alexion Pharmaceuticals (ALXN). This chart shows the damage over the course of the day.
- [By gurujx]Alexion Pharmaceuticals, Inc. (ALXN): Director Larry Mathis sold 80,729 Shares
Director Larry Mathis sold 80,729 shares of ALXN stock on Feb. 3 at the average price of $157.5. Larry Mathis owns at least 29,456 shares after this. The price of the stock has increased by 3.89% since.
- [By Peter Stephens]An exciting sector?
Amgen’s results paint an exciting picture for drug development in 2014, with the company having a relatively strong pipeline — especially in later-stage assets. As sector peer Alexion (NASDAQ: ALXN ) reported in its fourth-quarter update, the biotechnology space seems to be gathering momentum in 2014.
- [By John Udovich]On Thursday, rare disease biotech stock Alexion Pharmaceuticals, Inc (NASDAQ: ALXN)Â surged 21.14% after giving aÂ stronger-than-expected sales forecast of its drug Soliris, meaning its probably time to take a closer look at the stock along with potential performance benchmarks like biotech ETFs of iShares NASDAQ Biotechnology Index ETF (NASDAQ: IBB) and SPDR S&P Biotech ETF (NYSEARCA: XBI).
Best Stocks For 2014: Audience Inc (ADNC)
Audience, Inc., incorporated on May 24, 2011, is a provider of voice and audio solutions that improve voice quality and the user experience in mobile devices. The Companyâ€™s solutions include hardware-accelerated digital signal processors (DSPs), and audio codecs and associated algorithms for noise suppression in mobile devices. Its computational auditory scene analysis (CASA) maps the sound separation functions in human hearing, into a computational framework. The Companyâ€™s platform consists of its DSPs and audio codec, analog and mixed signal circuits and algorithms for voice isolation and noise suppression.
The Company also provides its AuViD graphical design tools to original equipment manufacturers (OEMs). The Company had sold over 250 million processors to its OEM customers as of December 31, 2012. In addition to the mobile device market, the Companyâ€™s voice and audio technology is also applicable to a range of other market segments, including automobile infotainment systems, digital cameras, digital televisions, headsets and set top boxes.
The Companyâ€™s product portfolio supports both analog and digital interfaces. As of December 31, 2012, the Company offered eS515, eS325, eS305, eS310, eS110, A1028 and A1026 custom voice and audio processors for device platforms, including smartphones, feature phones and media tablets. eS515 is a third generation voice and audio processor with an integrated audio codec, featuring support of three-microphones; eS325is a third generation voice and audio processor that features simultaneous three microphone processing; eS305 is a second generation voice and audio processor utilizing new hardware acceleration architecture and algorithms for far-field, wideband communications and capable of advanced speech recognition assist, and uses an all digital interface; eS310, provides similar capabilities to the eS305; eS110 is a first generation narrowband voice processor designed for real-time communications and far-field as well as near-field use with features such as acoustic echo cancelation, voice equalization and automatic gain control; A1026, is a first generation narrowband voice processor designed for real-time communications and typical near-field use, and A1028, which is a first generation narrowband voice processor designed for real-time communications and far-field, as well as near-field use.
The Company derives its revenue primarily from the sale of voice and audio processors to OEMs, which incorporate them into mobile devices. As of December 31, 2012, OEMs, CMs and distributors worldwide had purchased more than 250 million of its processors and incorporated them in over 140 mobile device models.
The Company competes with Maxim, ON Semiconductor, Qualcomm, Texas Instruments Incorporated, Wolfson Microelectronics plc, DSP Group, Inc. and Yamaha Corporation.
- [By Seth Jayson]Calling all cash flows
When you are trying to buy the market’s best stocks, it’s worth checking up on your companies’ free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That’s what we do with this series. Today, we’re checking in on Audience (Nasdaq: ADNC ) , whose recent revenue and earnings are plotted below.
Best Stocks For 2014: Fenner PLC (FENR)
Fenner PLC is a manufacturer and distributor of reinforced polymer products. It operates in two segments: engineered conveyor solutions, which is engaged in the manufacture of rubber, polyvinyl chloride and steel cord conveyor belts, ply, solid woven and steel cord conveyor belting for mining, power generation and industrial applications and advanced engineered products, which is engaged in the manufacture of precision polymer products; problem-solving power transmission and motion transfer components; silicone and complex hoses for heavy duty trucks, buses and off-road vehicles; seals and sealing solutions for the fluid power and oil and gas industries; technical textiles for medical and industrial applications and silicone based products for medical applications; rollers for digital image processing and medical diagnostics, and fluropolymer components for fluid and gas handling. Advisors’ Opinion:
- [By Inyoung Hwang]Fenner Plc (FENR) rallied 5.2 percent to 407.4 pence, its highest price since March 20. UBS AG started coverage of the conveyor-belt maker with a buy rating, saying shares are cheap. The bank predicted the stock will climb to 460 pence in the next 12 months.
Best Stocks For 2014: Star Scientific Inc (STSI)
Star Scientific, Inc. (Star Scientific), incorporated on June 24, 1985, is engaged in the manufacturing and production of dietary supplements. The Companyâ€™s operating subsidiaries manufacture, distribute and sell consumer products and dietary supplements. Its segment includes dietary supplements. Through its Rock Creek Pharmaceuticals, Inc. (Rock Creek) subsidiary, the Company is engaged in the manufacture, sale, marketing and development of non-nicotine nutraceutical, dietary supplements: Anatabloc, for anti-inflammatory support; the manufacture, sale and marketing of a cosmetic facial cream, and the development of other nutraceuticals, dietary supplements and pharmaceutical products. On December 14, 2012, the Company voted to discontinue the manufacturing, distribution and sale of its dissolvable smokeless tobacco products, Ariva and Stonewall Hard Snuff, as of December 31, 2012. With this change it will no longer be manufacturing or selling any tobacco products.
Rock Creek Pharmaceuticals has been engaged in the development of other dietary supplements and pharmaceutical products, particularly products that have a botanical- based component and that are designed to provide nutritional support in a range of neurological conditions, including Alzheimerâ€™s disease, Parkinsonâ€™s disease, schizophrenia, depression, and Hashimotoâ€™s thyroiditis. Rock Creek Pharmaceuticals also has been involved in the development of a cosmetic line of products that utilizes its anatabine compound to improve the appearance of the skin. On September 10, 2012, the Company introduced Anatabloc Facial Creme into the market. As of November 9, 2012, Anatabloc was being sold through its interactive Website, a customer service center and on a consignment basis through GNC, which is a retailer of dietary supplements. The Company uses its anatabine citrate compound in its dietary supplements Anatabloc and Anatabloc Unflavored and its anatabine-based cosmetic product, Anatabloc Facial Creme.
- [By Jake L’Ecuyer]Consumer goods stocks were underperformers in Tuesday’s trading, up on the day by just 0.5% compared to S&P’s 1.03 percent gain. Among the consumer goods stocks, shares of Star Scientific (NASDAQ: STSI) were down by more than 1 percent.
- [By Lisa Levin]Star Scientific (NASDAQ: STSI) shares reached a new 52-week low of $1.02 after the company received a warning letter from the FDA regarding consumer products.
- [By Bryan Murphy]To say that Star Scientific, Inc. (NASDAQ:STSI) has become one of the market’s most contentious stocks lately would be an understatement. Less than two days after shares finally broke above a key line in the sand at $2.11, a fairly scathing piece was posted that (and probably solely intended to do so) knocked STSI back under that key level, deflating any of the newly-developed bullishness surrounding the nutritional supplement company.
- [By Bryan Murphy]There’s little doubt that merely suggesting it will enflame some traders, but truth is truth – Ku6 Media Co Ltd (NASDAQ:KUTV) is overbought and ripe for a pullback, soon. Anyone worried about not having a place to park those proceeds, however, need not fret. There’s a brand new breakout finally underway that still has plenty of proverbial meat on the bone… Star Scientific, Inc. (NASDAQ:STSI), which just blasted past a key resistance line around $2.11 today. In so doing, it became free to rally without restraint.
Best Stocks For 2014: Twin Disc Incorporated(TWIN)
Twin Disc, Incorporated engages in the design, manufacture, and sale of marine and heavy duty off-highway power transmission equipment. The company?s product portfolio includes marine transmissions, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. It sells its products to customers primarily in the pleasure craft, commercial, and military marine markets, as well as in the energy and natural resources, government, and industrial markets through direct sales force and distributor network worldwide. Twin Disc, Incorporated was founded in 1918 and is headquartered in Racine, Wisconsin.
- [By Eric Volkman]It was chief executive election time at Twin Disc (NASDAQ: TWIN ) , with a familiar name emerging as the winner. The company’s board of directors has chosen John Batten to be its new CEO and president, effective Nov. 1. Batten replaces his father, Michael, who is to retire effective Dec. 31. The elder Batten will continue to serve in his present capacity as board chairman.