Hot Growth Companies To Watch For 2014

Growth stock expert Mike Cintolo highlights a trio of leading players in their online space. Here’s the latest from his Cabot Market Letter.

Facebook (FB)

Facebook’s stunning $19 billion purchase of WhatsApp grabbed the headlines for a week or two. It’s hard to defend the purchase price.

However, given WhatsApp’s gigantic user base (nearing 500 million, most of whom use the messaging service every day to the tune of 19 billion messages sent each day!), and its plan to introduce live voice calling this year, and the potential is there.

More important are Facebook’s traditional advertising efforts, which, according to executives at firms like Coca-Cola and American Express, are generating ever-higher returns for advertisers. The stock’s recent pause looks like a good buying opportunity.

HomeAway (AWAY)

It’s not as sexy as some other stories, but we believe HomeAway has all of the characteristics of a big winner—it serves a mass market, it offers a major benefit to consumers, it dominates its market.

Hot Growth Companies To Watch For 2014: Waste Management Inc.(WM)

Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.

Advisors’ Opinion:

  • [By Sean Williams]

    Show me the money!
    Starting us off this week is refuse and recycling giant Waste Management (NYSE: WM  ) , which on Friday divvied out $0.375 per share to investors, a $0.01 jump from its payout in the previous quarter. Waste Management’s business has been hit recently by weaker commodity prices that hurt its recycling margins, along with consolidation in the refuse business which is also pressuring margins. However, as the clear market-share leader in refuse, a necessity-based business, it continues to wield impressive pricing power that can be used to slowly grow its bottom line. Waste Management’s 3.6% yield should remain an attractive lure for income-seeking investors.

  • [By Louis Navellier]

    Waste and environmental services company Waste Management (WM) announced fourth-quarter results and a hefty new stock buyback program. With a 3.3% dividend yield and a firm handhold on the nation’s garbage collection market, could one man’s trash be a treasure in your portfolio?

  • [By Lauren Pollock]

    Among the companies with shares expected to actively trade in Tuesday’s session are Forest Laboratories Inc.(FRX), Coca-Cola Co.(KO) and Waste Management Inc.(WM)

Hot Growth Companies To Watch For 2014: Thoratec Corporation(THOR)

Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. The company?s primary product lines include ventricular assist devices, such as HeartMate II, an implantable left ventricular assist device consisting of a rotary blood pump to provide intermediate and long-term mechanical circulatory support (MCS); and HeartMate XVE, an implantable and pulsatile left ventricular assist device for intermediate and longer-term MCS. Its ventricular assist devices also comprise Paracorporeal Ventricular Assist Device, an external pulsatile ventricular assist device, which provides left, right, and biventricular MCS approved for bridge-to-transplantation (BTT), including home discharge, and post-cardiotomy myocardial recovery; and Implantable Ventricular Assist Device, an implantable and pulsatile ventricular assist device designed to provide left, right, and biventricular MCS approved for BTT comprising hom e discharge, and post-cardiotomy myocardial recovery. The company also provides CentriMag, an extracorporeal full-flow acute surgical support platform that offers support up to 30 days for cardiac and respiratory failure. In addition, it offers PediMag and PediVAS extracorporeal full-flow acute surgical support platforms designed to provide acute surgical support to pediatric patients. The company sells its products through direct sales force in the United States, as well as through a network of distributors internationally. Thoratec Corporation was founded in 1976 and is headquartered in Pleasanton, California.

Advisors’ Opinion:

  • [By Todd Campbell]

    Competing for heart pump market share
    Abiomed’s products provide circulatory support for up to six hours and are designed for use in cardiac cath labs or during heart surgery, but competitors Thoratec (NASDAQ: THOR  ) and Heartware (NASDAQ: HTWR  ) target the intermediate- and long-term-use market instead.

  • [By Brian Pacampara]

    What: Shares of medical device company Thoratec (NASDAQ: THOR  ) sank 12% today after its quarterly results missed Wall Street expectations.  

Hot Growth Companies To Watch For 2014: Buffalo Wild Wings Inc.(BWLD)

Buffalo Wild Wings, Inc. engages in the ownership, operation, and franchise of restaurants in the United States. The company provides quick casual and casual dining services, as well as serves bottled beers, wines, and liquor. As of July 26, 2011, it had 773 Buffalo Wild Wings locations in 45 states in the United States, as well as in Canada. The company was founded in 1982 and is headquartered in Minneapolis, Minnesota.

Advisors’ Opinion:

  • [By Victor Selva]

    As we can see, the firm has a higher ROE than Wendy´s and Buffalo Wild Wings, Inc. (BWLD), but far less than the ones from Dunkin Brands Group Inc (DNKN) and Brinker International, Inc. (EAT).

  • [By Leo Fasciocco]

    Buffalo Wild Wings (BWLD) has annual revenues of $1.3 billion. Its owned and franchised restaurants feature a variety of boldly flavored, made-to-order menu items, including Buffalo, New York-style chicken wings spun in one of their signature sauces.

Hot Growth Companies To Watch For 2014: Nordstrom Inc.(JWN)

Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It offers a selection of brand name and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey? boutiques, treasure & bond, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog. Nordstrom also provides a private label card, two Nordstrom VISA credit cards, and a debit card for Nordstrom purchases. The company?s credit and debit cards feature a shopping-based loyalty program. As of September 30, 2011, it operated 222 stores, including 117 full-line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure & bond store, and 1 clearance store in 30 states. The company was founded in 1901 and is based in Seattle, Washington.

Advisors’ Opinion:

  • [By Ben Levisohn]

    Shares of Dillard’s have dropped 1.4% to $89.99 at 3:13 p.m., while Macy’s (M) has dropped 0.6% to $57.33, Sears Holdings (SHLD) has fallen 2.7% to $44.61 and Nordstrom (JWN) has has dipped $61.59. JC Penney is little changed at $8.29.

  • [By Marc Bastow]

    Fashion specialty retailer Nordstrom (JWN) raised its quarterly dividend 10% to 33 cents per share, payable March 25 to shareholders of record as of March 10.
    JWN Dividend Yield: 2.15%

  • [By Grace L. Williams]

    The hits keep coming at high-end retailer Nordstrom (JWN).

    Bloomberg

    After reporting a decline in fourth-quarter earnings and weak sales, shares traded down 0.3% to $59.24 today. And Sterne, Agee & Leach’s Charles Grom, while acknowledging that the fourth quarter was “OK,” warned that there were issues developing underneath. He explains:

    Beneath the surface, there are two disturbing trends emerging that shouldn’t go unnoticed, including: 1) a more promotional environment/gross profit margin risk (as Nordstrom price matches); and 2) full line cannibalization (via e-commerce), which structurally compresses Nordstrom’s top-line algo. All told, the Nordstrom experience is one of the best in retail, but the stock is dead money for the foreseeable future, in our view.

    Grom accentuated a few positives that included a rise in same-store sales by 2.6% and decent earnings. A rise in inventory levels and lower EPS guidance were some of the negatives, Grom said.

    Nordstrom’s pain didn’t cause stand in the way of gains for some other department store stocks. Dillard’s (DDS) gained 1.5% to $89.33, while Macy’s (M) rose 0.5% to $53.71. Even J.C. Penney (JCP) had a better day. It finished down just 0.2% at $5.64.

     

  • [By Shauna O’Brien]

    Stifel reported on Friday that it has cut Nordstrom, Inc. (JWN) from “Buy” to Hold.”

    Analyst Richard Jaffe said that although JWN reported strong fourth quarter results, the company’s weak outlook for 2014 is a concern. The analyst noted that JWN’s Q4 results were “cautious given the current retail environment and the additional expenses related to Canada expansion, technology investments and accelerated Rack pre-opening costs.”

    The analyst also noted that “management has taken a long-term view, recognizing that the retail world is changing rapidly and dramatically, and has adjusted its growth investments to be consistent with the changing environment. Nordstrom has focused its efforts on the e-commerce business, the Rack off-price business and the new markets of Canada and New York City. These investments are different than prior investments and differ greatly from the investment in a new Nordstrom full-line store.”

    Regarding the company’s expansion to Canada, Jaffe said: “Canadian retail real estate in prime locations is different than the US. There are fewer high quality locations and as a result they are costly; requiring upfront expenditures, build-out expenses and monthly rent to be paid. The analyst notes that population density is better around larger cities in Canada.”

    Nordstrom shares were down $1.24, or 2.09%, during pre-market trading Friday. The stock is down 3.82% YTD.

Hot Growth Companies To Watch For 2014: Checkpoint Systms Inc.(CKP)

Checkpoint Systems, Inc. manufactures and markets identification, tracking, security, and merchandising solutions for the retail and apparel industry worldwide. The company operates in three segments: Shrink Management Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. The Shrink Management Solutions segment provides shrink management and merchandise visibility solutions. It offers electronic article surveillance systems, such as EVOLVE, a suite of RF and RFID-enabled products that act as a deterrent to prevent merchandise theft in retail stores; and electronic article surveillance consumables, including EAS-RF and EAS-EM labels that work in combination with EAS systems to reduce merchandise theft in retail stores. This segment also provides keepers, spider wraps, bottle security, and hard tags, as well as Showsafe, a line alarm system for protecting display merchandise. In addition, it offers physical and electronic store monitoring solutions, incl uding fire alarms, intrusion alarms, and digital video recording systems for retail environments; and RFID tags and labels. The Apparel Labeling Solutions segment provides apparel labeling solutions to apparel retailers, brand owners, and manufacturers. It has Web-enabled apparel labeling solutions platform and network of 28 service bureaus located in 22 countries that supplies customers with customized apparel tags and labels. The Retail Merchandising Solutions segment offers hand-held label applicators and tags, promotional displays, and queuing systems. The company serves retailers in the supermarket, drug store, hypermarket, and mass merchandiser markets through direct distribution and reseller channels. Checkpoint Systems was founded in 1969 and is based in Thorofare, New Jersey.

Advisors’ Opinion:

  • [By Lisa Levin]

    Checkpoint Systems (NYSE: CKP) surged 17.73% to $14.21. The volume of Checkpoint Systems shares traded was 525% higher than normal. Checkpoint announced its intent to extend the filing date of its annual report.

  • [By John Udovich]

    Small cap Checkpoint Systems, Inc (NYSE: CKP) fights shoplifting or retail theft and other forms of “shrink” that costs retailers over $112 billion worldwide last year (according to a study funded by the company), meaning it might be an interesting stock to take a closer look at and to compare its performance with that of SPDR S&P Retail ETF (NYSEARCA: XRT) and PowerShares Dynamic Retail ETF (NYSEARCA: PMR). Just how bad can shoplifting or shrink be for a retailer? Troubled retailer J.C. Penney Company, Inc (NYSE: JCP) has just reported that shoplifting took a full percentage point off the department store chain’s profit margins during the quarter. Moreover and given that tens of millions of Americans are now facing higher health insurance costs thanks to Obamacare (which will likely impact consumer discretionary spending), retailers will need to find ways to shore up their margins and bottom lines by preventing retail theft with solutions from company’s like C heckpoint Systems.

  • [By Rich Smith]

    Three months after settling upon a new chief executive officer, it looks like Thorofare, N. J.-based Checkpoint Systems (NYSE: CKP  ) will soon have itself a new CFO as well.