With interest rates still at rock-bottom levels, equities remain pretty much the only alternative to grow and retain capital for most people, suggests Stephen Quickel, editor of US Investment Report.
Moreover, price valuations are comparatively moderate because earnings gains have kept up with the price gains. Forward P/Es are in the mid-teens range and PEG ratios for our growth stocks are in an ideal range, just under 1.00.
Corporate America, still quite lean and well-managed in the wake of the recession and financial crisis of 2007 to 2009, continues to crank out rising profits. And in the stock market, sustained earnings growth is the name of the game.
We are adding several new stocks to the Recommended List. Here is what we like about them:
Seattle-based Alaska Air Group (ALK), under attack by Delta Air Lines on its home turf, has been expanding southward into Salt Lake City, New Orleans, and Tampa.
Its shares have doubled to $80 since last summer, along with other airline issues, yet still trade at only 11 times earnings and a PEG of 0.72. Despite two bouts of selling by top officers, insiders’ holdings remain large.
Hot Asian Stocks To Own Right Now: Hawaiian Holdings Inc.(HA)
Hawaiian Holdings, Inc., through its subsidiary, Hawaiian Airlines, Inc., engages in the scheduled air transportation of passengers and cargo. It offers daily service on transpacific routes between Hawaii and Los Angeles, Oakland, Sacramento, San Diego, San Francisco, and San Jose, California; Las Vegas, Nevada; Phoenix, Arizona; Portland, Oregon; and Seattle, Washington, as well as daily service on its inter island routes among the four islands of the State of Hawaii. The company also provides scheduled service on its Pacific routes between Hawaii and Pago Pago, American Samoa; Papeete, Tahiti; Sydney, Australia; Manila, Philippines; Tokyo, Japan; and Seoul, South Korea, as well as other ad hoc charters. As of December 31, 2010, its fleet consisted of 15 Boeing 717-200 aircraft for its interisland routes; 18 Boeing 767-300; and 3 Airbus A330-200 aircrafts for its transpacific, Pacific, and charter routes. Hawaiian Holdings, Inc. was founded in 1929 and is headquartered in Honolulu, Hawaii.
- [By Michele Lerner, The Motley Fool]
Alan Diaz/APAmerican Airlines did better at staying on schedule last year than it did in 2012, when it accused pilots of a work slowdown. DALLAS — A big drop in customer complaints helped U.S. airlines post their best ratings ever even though more flights were late and more bags were mishandled, according to a report released Monday by university researchers. Virgin America topped the ratings, and three regional airlines scored at the bottom. Among the four biggest airlines, Delta Air Lines (DAL) ranked best followed by Southwest (LUV), American (AAL) and United (UAL), according to researchers from Wichita State University and Embry-Riddle Aeronautical University. The researchers have graded airlines since 1991 on government figures for on-time performance, mishandled bags, bumping passengers, and complaints filed with the U.S. Department of Transportation. Their key findings: On-Time Performance: Airlines operated 78.4 percent of their flights on time in 2013, down from 81.8 percent in 2012. Best: Hawaiian Airlines (HA); worst: American Eagle. Only two airlines improved: American Airlines and United. Bag Handling: The rate of lost, stolen or delayed bags rose 5 percent. Best: Virgin America; worst: American Eagle. Bumping: The rate of bumping passengers from flights fell 8 percent. Best: JetBlue Airways (JBLU); worst: SkyWest (SKYW). Complaints: Consumer complaints to the government dropped 15 percent in 2013 after rising 20 percent the year before. Best: Southwest Airlines; worst: Frontier (RJET). One of the report’s authors, Wichita State business professor Dean Headley, credited the drop in complaints partly to United Airlines. The company suffered several computer-network outages and grounded hundreds of flights in 2012 when it combined the United and Continental computer networks after a merger, but “got their act together” in 2013, he said. Headley said the drop in complaints might also reflect “a certain amount of resignation” that “it’s neve
- [By Ben Levisohn]
Last week Hawaiian Airlines (HA) announced they will suspend service from Honolulu to Fukuoka after two years of unprofitable service. Hawaiian stated the market was not profitable. Delta recently started flying Honolulu-Fukuoka (and they have hedged the Yen at 80); both US airlines were operating about half full. As a result of Hawaiian leaving the market, we expect Delta’s load factors to improve. Delta has been slowly overlaying a lot of competitor capacity on the West Coast, especially to / from Seattle…
Hot Asian Stocks To Own Right Now: Teledyne Technologies Incorporated (TDY)
Teledyne Technologies Incorporated provides instrumentation, digital imaging products and software, aerospace and defense electronics, and engineered systems in the United States and internationally. The company?s Instrumentation segment provides monitoring and control instruments for marine, environmental, scientific, industrial, and defense applications, as well as harsh environmental interconnect products. Its Digital Imaging segment includes sponsored and centralized research laboratories benefiting government programs and businesses, as well as development efforts for innovative digital imaging products for government and space applications. It also includes infrared detectors, cameras, and optomechanical assemblies. Teledyne Technologies? Aerospace and Defense Electronics segment provides electronic components and subsystems and communications products, including defense electronics, data acquisition, and communications equipment for air transport and business aircra ft and components and subsystems for wireless and satellite communications, as well as general aviation batteries. The company?s Engineered Systems segment provides systems engineering and integration, advanced technology application, software development, and manufacturing solutions to space, military, environmental, energy, chemical, biological and nuclear systems, and missile defense requirements. This segment also designs and manufactures hydrogen generators, thermoelectric and fuel-cell based power sources, and small turbine engines. Teledyne Technologies? customers include government agencies, aerospace prime contractors, energy exploration and production companies, industrial companies, and airlines. The company was founded in 1960 and is headquartered in Thousand Oaks, California.
- [By Inyoung Hwang]
Teledyne Technologies (TDY), which gets 80 percent of its revenue from the U.S., raised its 2013 per-share earnings projections last week. The Thousand Oaks, California-based aerospace and defense electronics provider, up 39 percent for the year, exceeded analyst projections by 8.1 percent last quarter, data compiled by Bloomberg show.
- [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 Teledyne Technologies (NYSE: TDY ) , whose recent revenue and earnings are plotted below.
- [By Geoff Gannon]
We should be careful to overstate the tax aspect of buybacks. For example, Q-Logic has a lot of cash overseas (almost all of its $500 million). The company could – in theory – make several tender offers for close to 50% of its market cap with that cash. This is the Teledyne (TDY) approach. Q-Logic doesn’t do that for several reasons. One, it likes having some cash on hand at all time. But, more importantly, it doesn’t want to pay the tax.
Hot Asian Stocks To Own Right Now: Unwired Planet Inc (UPIP)
Unwired Planet, Inc. (Unwired Planet), formerly Openwave Systems Inc., incorporated on December 16, 1994, is an intellectual property and technology licensing company. As of June 30, 2012, the Company had patent portfolio of approximately 200 issued United States and foreign patents and approximately 75 pending applications, many of which is considered foundational to mobile communications. In May 2012, the Company officially changed name to Unwired Planet, Inc.
On February 1, 2012, the Company sold its location business to Persistent Telecom Solutions Inc. On April 30, 2012, the Company completed the sale of its mediation and messaging product businesses to Openwave Mobility, Inc. The Company generates revenue by licensing its patented innovations and technologies to companies that develop mobile communications software infrastructure or hardware and/or develop mobile communications products.
- [By Anora Mahmudova]
Among individual stocks, Unwired Planet (UPIP) , an intellectual property company focused on the mobile industry, soared 49% after news that Chinese computer-maker Lenovo Group Ltd. (HK:0992) was buying 21 of its patent families for $100 million.
- [By Wallace Witkowski]
Shares of Unwired Planet Inc. (UPIP) jumped 75% to $2.27 on heavy volume after Lenovo Group (HK:0992) said it would buy about 21 patent families from Unwired for $100 million.
- [By James E. Brumley]
If you’d rather spend your hard-earned dollars on some bargain-priced stocks rather than face the Black Friday mania at the malls (wise choice, by the way), then you’ve come to the right place. And, you may want to start you bargain hunt with Metabolix, Inc. (NASDAQ:MBLX) and Unwired Planet Inc. (NASDAQ:UPIP). Both names have been unduly beaten up in recent weeks, and better still, it looks like UPIP and MBLX, are ready to recover… in spades. That’s an important detail, as a bargain is only a bargain if it’s something actually worth owning. Take a look.
Hot Asian Stocks To Own Right Now: Dendreon Corporation(DNDN)
Dendreon Corporation, a biotechnology company, engages in the discovery, development, and commercialization of therapeutics to enhance cancer treatment options for patients. The company offers active cellular immunotherapy and small molecule product candidates to treat various cancers. Its product candidates comprise Provenge (sipuleucel-T), an active cellular immunotherapy for the treatment of metastatic, castrate-resistant prostate cancer; DN24-02, an investigational active immunotherapy for the treatment of patients with bladder, breast, ovarian, and other solid tumors expressing HER2/neu; and TRPM8, a small molecule agonist to transient receptor potential ion channel, for multiple cancers. The company also has a range of products in preclinical studies, which include Carcinoembryonic antigen for the treatment of lung, colon, and breast cancer; and Carbonic AnhydraseIX for the treatment of kidney cancer. Dendreon Corporation was founded in 1992 and is headquartered in S eattle, Washington.
- [By James E. Brumley]
If the idea sounds too radical to be true, it isn’t. The idea is being employed by several biotechnology developers, including the aforementioned CEL-SCI and Amgen; they each have such immunotherapies in the works. In fact, there’s already one major cancer-fighting immunotherapy on the market…. Provenge, from Dendreon (NASDAQ:DNDN). Although Provenge has been something of a disappointment in terms of sales – possibly due to modest efficacy relative to a huge price tag – and DNDN shares have struggled for a while, the fact that there’s such a drug on the market validates the entire premise; the fact that other key players like Amgen and CEL-SCI are working on their own cancer-immunology drugs is just icing on the cake.
- [By Bryan Murphy]
It may not have blazed a trail into the young, immunology segment of the biotech industry the way Dendreon Corporation (NASDAQ:DNDN) did back in 2010 with the debut of Provenge. It may not have the same immunology pipeline (and company size) that ImmunoGen, Inc. (NASDAQ:IMGN) boasts. One thing is pretty certain about cancer-immunotherapy developer CEL-SCI Corporation (NYSEMKT:CVM) right now, however – its stock may be poised to dole out a much bigger foreseeable-future reward than DNDN or IMGN are.
Hot Asian Stocks To Own Right Now: Solta Medical Inc(SLTM)
Solta Medical, Inc., together with its subsidiaries, engages in the design, development, manufacture, and marketing of energy-based medical device systems for aesthetic applications primarily in North America, the Asia Pacific, Europe, and the Middle East. It offers Fraxel re:pair system for use in dermatological procedures requiring ablation, coagulation, and resurfacing of soft tissue, as well as for rhytides, pigmentation, dyschromia, fine lines, acne, surgical scars, deeper lines, wrinkles, and actinic keratoses; and Clear + Brilliant system for patients who want to take control of their aging process. The company also provides Thermage CPT system that provides non-invasive treatment options for skin tightening; Liposonix system to destroy unwanted fat cells resulting in waist circumference reduction; Isolaz system for the treatment of inflammatory acne, comedonal acne, and mild to moderate inflammatory acne; and the CLARO device, a consumer handheld device for the tre atment of mild-to-moderate inflammatory acne, including pustular acne. Its customers principally include dermatologists, plastic surgeons, general and family practitioners, gynecologists, and ophthalmologists. The company sells its products primarily through a direct sales force, as well as through independent distributors; and CLARO device through retail and associated retailer?s Websites, and television retail networks, as well as through its own website in the United States. The company was formerly known as Thermage, Inc. and changed its name to Solta Medical, Inc. in January 2009. Solta Medical, Inc. was incorporated in 1996 and is headquartered in Hayward, California.
- [By John Udovich]
Large cap serial acquirer Valeant Pharmaceuticals International Inc (NYSE: VRX) is teaming up with activist investor Bill Ackman to pursue large cap Botox maker Allergan, Inc (NYSE: AGN), but stocks like Cutera, Inc (NASDAQ: CUTR), Cynosure, Inc (NASDAQ: CYNO), PhotoMedex Inc (NASDAQ: PHMD) and Syneron Medical Ltd (NASDAQ: ELOS) actually offer investors more exposure to the growing anti aging and aesthetics market (Note: See my recent article: These Small Caps Seek to Treat Your Crow’s Feet and Double Chin (RVNC & KYTH)). To begin with, Valeant Pharmaceuticals International has a wide focus on neurology, dermatology and infectious diseases but acquiring the maker of Botox won’t be its first foray into the aesthetic market because earlier this year, the company completed its acquisition of Solta Medical Inc (NASDAQ: SLTM) – a designer, developer, manufacturer and marketer of energy-based medical device systems for aesthetic applications. And while Allergan, Inc may be most well known for Botox, its actually a pretty big company focused on a diverse range of areas, including ophthalmic pharmaceuticals, dermatology, neuroscience, urology and cosmetics – meaning the following stocks offer investors better exposure to the aesthetics market:
- [By Tess Stynes]
Among the companies with shares expected to actively trade in Monday’s session are Sprint Corp.(S), American International Group Inc.(AIG) and Solta Medical Inc.(SLTM)
- [By Lauren Pollock]
Solta Medical Inc.(SLTM) unveiled restructuring plans to improve its financial performance and has hired an adviser to help evaluate strategic alternatives, including a possible sale or merger of the medical aesthetics device maker. Investors cheered the news, sending shares up 7.7% to $1.97 premarket.
- [By John Udovich]
On Tuesday, small cap biotech stock Kythera Biopharmaceuticals Inc (NASDAQ: KYTH) surged around 25% after announcing that its ATX-101 REFINE-1 and REFINE-2 Phase III trials met all primary and secondary endpoints for the reduction of so-called double chins; but if investors missed out on that rally, small caps Zeltiq Aesthetics Inc (NASDAQ: ZLTQ), Solta Medical Inc (NASDAQ: SLTM) and Cynosure, Inc (NASDAQ: CYNO) each have a piece of the aesthetic market as well. In the case of Kythera Biopharmaceuticals, its ATX-101 can be injected to deal with double chins – meaning its less invasive than liposuction as the drug dissolves fat cells but leaves other tissue alone. JP Morgan has noted:
Hot Asian Stocks To Own Right Now: Pacira Pharmaceuticals Inc.(PCRX)
Pacira Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the development, commercialization, and manufacture of pharmaceutical products for use in hospitals and ambulatory surgery centers. The company develops pharmaceutical products based on its proprietary DepoFoam drug delivery technology. Its product portfolio includes EXPAREL, a long-acting non-opioid postsurgical analgesic for postsurgical pain management; DepoCyt for the treatment of lymphomatous meningitis, a cancer of the immune system; DepoDur for controlling post operative pain; DepoNSAID, which is in preclinical trials for the relief of acute pain; and DepoMethotrexate that is in preclinical trials for the treatment of rheumatoid arthritis oncology. The company was formerly known as Pacira, Inc. and changed its name to Pacira Pharmaceuticals, Inc. in October 2010. Pacira Pharmaceuticals, Inc. was founded in 2006 and is headquartered in Parsippany, New Jersey.
- [By Lisa Levin]
Pacira Pharmaceuticals (NASDAQ: PCRX) shares moved up 6.48% to $69.69. The volume of Pacira Pharmaceuticals shares traded was 350% higher than normal. Pacira Pharmaceuticals priced its public offering of 1,600,000 shares at $64.00 per share.
- [By Jake L’Ecuyer]
Leading and Lagging Sectors
Monday morning, the healthcare sector proved to be a source of strength for the market. Leading the sector was strength from Nordion (NYSE: NDZ) and Pacira Pharmaceuticals (NASDAQ: PCRX). Utilities sector rose by just 0.19 percent in the US market today.
Hot Asian Stocks To Own Right Now: Palo Alto Networks Inc (PANW)
Palo Alto Networks, Inc., incorporated in March 2005, offers a network security platform that allows enterprises, service providers, and government entities to secure their networks. The core of its platform is the Company’s firewall that delivers natively integrated application, user, and content visibility and control through its operating system, hardware, and software architecture. The Company primarily sells its products and services to end-customers through distributors, resellers, and partners, and directly to end-customers (collectively partners), who are supported by its sales and marketing organization, in the Americas, in Europe, the Middle East, and Africa (EMEA), and in Asia Pacific and Japan (APAC). Its products and services can address a range of its end-customers’ network security requirements, from the data center to the network perimeter, as well as the distributed enterprise, which includes branch offices and a number of mobile devices. It introduced PA-5000 Series and GlobalProtect subscription service in March 2011 and the PA-200 and WildFire subscription service in November 2011.
The Company’s platform is delivered in an appliance form factor and includes a suite of subscription services, as well as support and maintenance. Its subscription services can be activated on any of its appliances. All of the Company’s appliances incorporate its PAN-OS operating system and are based on its identification technologies, App-ID, User-ID, and Content-ID, which allow security policies to be defined within the context of applications, users, and content. It delivers these capabilities through a single-pass parallel processing architecture that simultaneously performs multiple identification, security and networking functions. The Company serves the enterprise network security market, which consists of Firewall/ Virtual Private Network (VPN), Unified Threat Management (UTM), Web Gateway, Intrusion Detection and P revention (IDP/IPS), and VPN technologies. The Company deriv! ed 62% of its total revenue from the Americas, 27% from Europe, the Middle East, and Africa (EMEA), and 11% from Asia Pacific and Japan (APAC) as of January 31, 2012.
The Company derives revenue from sales of its products and services, which together comprise its platform. Product revenue is primarily generated from sales of its Firewall. The Company’s Threat Prevention, universal resource locator (URL) Filtering, and GlobalProtect subscriptions provide its end-customers with real-time access to the antivirus, intrusion prevention, Web filtering, and malware protection capabilities across fixed and mobile devices. The Company’s application classification engine, called App-ID, uses multiple identification techniques to determine the exact identity of applications traversing the network. App-ID is the foundational classification engine that provides the core traffic classification to all other functions in its platform. The App-ID classification is used to i nvoke other security functions.
App-ID uses a series of classification techniques to identify an application. App-ID classifies all network traffic, including business applications, consumer applications, and network protocols, across all ports. User-ID integrates its platform with a range of enterprise user directories and technologies, including Active Directory, eDirectory, Open LDAP, Citrix Terminal Server, Microsoft Exchange, Microsoft Terminal Server, and ZENworks. Content-ID is a collection of technologies that enables its subscription services. Content-ID combines a real-time threat prevention engine, cloud-based analysis service, and a URL categorization database to limit unauthorized data and file transfers, detect and block a range of threats, and control non-work related Web surfing. Its WildFire, cloud-based analysis service provides a real-time analysis engine for detecting previously unseen malware. Its URL filtering database consists of millions of URLs across many categories and is designed to monitor a! nd contro! l employee Web surfing activities. Single-Pass Parallel Processing Architecture (SP3) has two elements: single-pass software and parallel processing hardware.
The PAN-OS Operating System operating system provides the foundation for its network security platform and contains App-ID, User-ID, and Content-ID. PAN-OS performs the core functions of its platform, while also providing the networking, security, and management functions needed for implementation. The PAN-OS networking functions include dynamic routing, switching, high availability, and VPN support, which enables deployment into a range of networking environments. PAN-OS also includes attack protection capabilities, such as blocking invalid or malformed packets, IP defragmentation, TCP reassembly, and network traffic normalization. The Company also offers, such as application traffic management, solution design and planning, configuration, and firewall migration. Its education services provide classroom- style training and are primarily delivered through its partners.
The Company competes with Cisco, Juniper, Intel, IBM, HP, Check Point Software, Fortinet and Sourcefire.
- [By Sue Chang]
Palo Alto Networks Inc. (PANW) is forecast to report earnings of 10 cents a share in the fiscal third quarter.
- [By Lee Samaha]
IT security company Check Point Software (NASDAQ: CHKP ) delivered a good set of results recently, but its guidance disappointed and the stock took a hit. The company has long been known for its high profit margins and excellent cash flow, but the security marketplace is very competitive. Is Check Point starting to feel the heat from competitors like Fortinet (NASDAQ: FTNT ) and Palo Alto Networks (NYSE: PANW ) ? Or, is its guidance too conservative?
Hot Asian Stocks To Own Right Now: iShares MSCI Spain Capped ETF (EWP)
iShares MSCI Spain Index Fund (the Fund) seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the aggregate in the Spanish market, as measured by the MSCI Spain Index (the Index). The Index seeks to measure the performance of the Spanish equity market. The Index is a capitalization-weighted index that aims to capture 85% of the (publicly available) total market capitalization. Component companies are adjusted for available float and must meet objective criteria for inclusion in the Index. The Index is reviewed quarterly.
The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. The Fund’s investment advisor is Barclays Global Fund Advisors.
- [By Matthew McCall]
iShares MSCI Spain Index ETF (NYSE: EWP)
Overnight, a surprise fall in the inflation number out of Spain had a ripple affect across the region. The 0.2 percent annual rate decline in consumer prices was the weakest number since October 2009 and well below expectations. Borrowing costs for Spain and Italy fell to their lowest levels in three years and stocks were trading higher.
- [By Tom Aspray]
One of the more surprising developments of the past month or so has been the strong performance by some of the European country ETFs. Leading the pack is Spain as the iShares MSCI Spain (EWP) is up about 10% since the December 18 taper lows but did give up some ground last week.
- [By Chris Versace]
As the outlook in the Spanish economy continues to improve, let’s be sure to participate by buying shares of iShares MSCI Spain Capped ETF (EWP), which tracks the Spanish equity markets.
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, the iShares MSCI Spain Capped Index (NYSEMKT: EWP ) has received the dreaded one-star ranking.