International Business Machines Corp. (NYSE: IBM) is proving that it has very limited growth opportunities in new revenues. The only saving grace for the rest of us these days is that IBM is now no longer the largest DJIA stock since Visa Inc. (NYSE: V) is a DJIA stock.
Big Blue’s earnings came in up 10% at $3.99 per share on an adjusted basis and sales came in down 4% at $23.72 billion. Thomson Reuters was calling for estimates of $3.96 EPS but on sales of closer to $24.75 billion. Our view is that there is very little to get excited about in this earnings report and shares are taking it on the chin as a result.
If you back out restructuring and one-time charges, IBM’s earnings would have been $3.68 per share and that is up 11%. Operating margins were 49.1% on an adjusted basis and 48% on a net basis. IBM also maintained its operational earnings guidance of $16.25 to $16.90 per share versus estimates from Thomson Reuters of $16.89 per share.
IBM is still maintaining that it expects to achieve its long-term plan of $20.00 in earnings per share by the end of 2015. 24/7 Wall St. believes that this earnings target is coming at too high of a price on its core business and that it is possibly gutting itself in the years beyond that target.
Top 10 Penny Stocks To Watch Right Now: Safe Bulkers Inc(SB)
Safe Bulkers, Inc. provides marine drybulk transportation services worldwide. The company transports various bulk cargoes, primarily coal, grain, and iron ore. As of July 15, 2011, it had a fleet of 16 drybulk vessels, with an aggregate carrying capacity of 1,443,800 deadweight tons. The company?s fleet consists of Panamax, Kamsarmax, Post-Panamax, and Capesize class vessels, as well as 11 further contracted additional drybulk new build vessels to be delivered at various times through 2014. Safe Bulkers, Inc. was incorporated in 2007 and is based in Athens, Greece.
- [By Louis Navellier]
European Stocks to Buy: Safe Bulkers (SB)
Safe Bulkers (SB) is a Greek company that owns and operates dry bulk carrier vessels that transport major bulks, which include iron ore, coal, and grains Right now they have a fleet of 20 dry bulk carriers and also provide felt management services to third parties.
- [By James E. Brumley]
It’s certainly no Safe Bulkers, Inc. (NYSE:SB) or Star Bulk Carriers Corp. (NASDAQ:SBLK), in terms or market cap or revenue. In fact, even with the drybulk shipping industry it’s a somewhat obscure name. Yet, FreeSeas Inc. (NASDAQ:FREE) may well be the stock with the most near-term potential upside, now that it’s gotten over a key technical hump.
- [By Bryan Murphy]
If you’re reading this, then odds are you already know shipping stocks like Diana Shipping Inc. (NYSE:DSX), Safe Bulkers, Inc. (NYSE:SB), and Navios Maritime Partners L.P. (NYSE:NMM) are all up big-time today, and up nicely for the week, for that matter. SB is up 11% for the day, NMM is up 6% for the week, while DSX is higher by 8% for the session, snapping a surprisingly-long weak streak.
- [By James E. Brumley]
The recent strength from Sino-Global Shipping America, Ltd. (NASDAQ:SINO) and the now-renewed strength from Safe Bulkers, Inc. (NYSE:SB) would suggest those two stocks are among the very best ways to play the rebound currently unfurling in the shipping sector. And to be fair, both are fine companies in their own right. The top play in the dry goods maritime shipping arena, however, may well be Diana Shipping Inc. (NYSE:DSX). No, DSX isn’t one of the fun and exciting small caps in the maritime shipping space. But, there’s a lot to be said for size and stability, which SB and SINO can’t offer.
Top 10 Penny Stocks To Watch Right Now: USA Technologies Inc.(USAT)
USA Technologies, Inc. supplies cashless, remote management, reporting, and energy management solutions for the unattended point of sale market primarily in the United States. The company offers networked devices and associated services that enable the owners and operators of stand-alone distributed assets, such as vending machines, kiosks, personal computers, photocopiers, and laundry equipment the ability to remotely monitor, control, and report on the results of these distributed assets, as well as the ability to offer their customers cashless payment options. Its products include Intelligent Vending, an ePort connect solution for the vending industry; Kiosk, an ePort solution that offers an electronic payment option and Web-based remote monitoring and management for various kiosk types; eSuds, a solution for the commercial laundry industry; Business Express, which provides self-service business center solutions to the hotel and motel industry; and ePort Transact soluti on for the self-service business center devices, such as printers and copy machines. The company also manufactures and sells energy conservation products comprising VendingMiser, CoolerMiser, VM2IQ and CM2IQ, SnackMiser, and PlugMiser for various existing equipment, including refrigerated vending machines and glass front coolers. USA Technologies, Inc. was founded in 1992 and is based in Malvern, Pennsylvania.
- [By Monica Gerson]
USA Technologies (NASDAQ: USAT) is estimated to report its Q4 earnings at $0.02 per share on revenue of $9.89 million.
Vail Resorts (NYSE: MTN) is projected to post a Q4 loss at $1.71 per share on revenue of $117.82 million.
Top 10 Penny Stocks To Watch Right Now: Westinghouse Solar Inc.(WEST)
Westinghouse Solar, Inc. engages in the design, manufacture, integration, and installation of solar power systems under the Westinghouse name. It offers its solar power systems for residential and commercial customers. The company also designs and distributes solar panels with integrated micro inverters (called as AC solar panels). The company sells its AC solar panels to solar installers, trade workers, and do-it-yourself customers through distribution partnerships, dealer network, and retail outlets. It has a strategic partnership with Real Goods Solar, whereby Real Goods Solar operates as an authorized dealer for westinghouse solar power systems for sale to its customers in California and Colorado markets. The company was formerly known as Akeena Solar, Inc. and changed its name to Westinghouse Solar, Inc. on Apr 14, 2011. Westinghouse Solar, Inc. was founded in 2001 and is headquartered in Campbell, California.
- [By John Udovich]
Small cap solar stock Andalay Solar Inc (OTCMKTS: WEST) has largely cratered for investors verses solar stock peers Real Goods Solar, Inc (NASDAQ: RSOL) and SolarCity Corp (NASDAQ: SCTY), but is the company finally turning itself around after a failed deal to be acquired?
- [By Bryan Murphy]
My enthusiasm regarding Real Goods Solar, Inc. (NASDAQ:RSOL) and Westinghouse Solar Inc. (OTCMKTS:WEST) hasn’t exactly been a veiled secret. Though I’ve favored one over the other at various times since the entire solar panel industry went back into high gear in the middle of the second quarter, I’ve been a fan of both RSOL as well as WEST for a while. The trick has been finding the right entry spot for both of these volatile stocks.
- [By Bryan Murphy]
It’s fun to be right, but that doesn’t always mean it’s fruitful. I was right about Westinghouse Solar Inc. (OTCMKTS:WEST) being a breakout candidate when I explained the chart’s most likely technical outcome. Though it took a little more than a week for WEST to actually perform as expected, it got there. Problem: It got there in spades, solving one problem but creating another. Though I’m still bullish on this solar play, we need a new roadmap.
Top 10 Penny Stocks To Watch Right Now: Telular Corporation(WRLS)
Telular Corporation designs, develops, and distributes products and services that utilize wireless networks to provide data and voice connectivity among people and machines primarily in the United States and internationally. It provides machine-to-machine and event monitoring services, including Telguard that comprises a specialized terminal unit, which interfaces with commercial security control panels and communicates with event processing servers to provide real-time transport of alarm signals from residential and commercial locations to an alarm company?s central monitoring station; and TankLink solution that combines a cellular communicator, wireless data services, and a Web-based application into a single offering, which allows end-users to monitor the product level in a given tank vessel. The company also offers fixed cellular terminals for voice, fax, and Internet access over the wireless networks. It sells its products to security equipment distributors, cellular carriers, and value added resellers. The company was founded in 1986 and is headquartered in Chicago, Illinois.
- [By Eric Volkman]
Telular (NASDAQ: WRLS ) will most likely soon be an asset belonging to another company. It has entered into an agreement to be bought by private equity firm Avista Capital Partners for total consideration of $253 million. This consists of $12.61 per share in cash and roughly $18.5 million in assumed debt.
Top 10 Penny Stocks To Watch Right Now: Westell Technologies Inc.(WSTL)
Westell Technologies, Inc., through its subsidiaries, engages in the design, distribution, marketing, and servicing a range of broadband, digital transmission, remote monitoring, power distribution, and demarcation products used by telephone companies and other telecommunications service providers. It operates in three segments: Customer Networking Systems (CNS) equipment, Outside Plant Systems (OSP) equipment, and ConferencePlus services. The CNS equipment segment provides networking and high-speed transmissions products, such as modems, routers, versatile gateway devices, and wireless broadband home routers that allow service providers to deliver broadband services over existing copper, fiber, coax, or wireless infrastructures. The OSP segment offers next generation outdoor cabinets; enclosures; power distribution; fiber, Ethernet, and coax edge connectors; remote monitoring equipment; and DS1 and DS3 transmission plugs. This segment also markets and sells power distribu tion and remote monitoring solutions. The ConferencePlus services segment provides audio, Web, and video conferencing services to businesses and individuals. This segment sells its services directly to Fortune 1000 companies, and indirectly through its private reseller programs. The company offers its products through field sales organizations and selected distributors in the United States, as well as in Canada and Europe. Westell Technologies, Inc. was founded in 1980 and is headquartered in Aurora, Illinois.
- [By Rich Smith]
On Friday, the diversified manufacturer named Brian S. Cooper to replace interim CFO Braden Waverley on May 28. Waverly will remain acting CFO until Cooper joins the company next month. Cooper comes to Federal Signal by way of smaller telecommunications equipment maker Westell Technologies (NASDAQ: WSTL ) , where he has served as CFO since 2009.
- [By Rich Smith]
Late last month, the networking equipment maker had to scramble when its acting chief financial officer, Tom Minichiello, announced plans to retire on July 12 to become the new CFO at Westell Technologies (NASDAQ: WSTL ) . On Friday, though, just as the deadline was happening, Tellabs announced that it has found a replacement.
- [By Geoff Gannon]
1. Steel Excel (SXCL)
2. FormFactor (FORM)
3. Imation (IMN)
4. Tuesday Morning (TUES)
5. Pacific Biosciences (PACB)
6. Maxygen (MAXY)
7. Westell (WSTL)
8. Volt Information Sciences (VISI)
9. Yasheng Group (YHGG)
Top 10 Penny Stocks To Watch Right Now: First Financial Northwest Inc.(FFNW)
First Financial Northwest, Inc. operates as the holding company for First Savings Bank Northwest that provides community-based savings bank services in Washington. Its deposit products include noninterest bearing accounts, NOW accounts, money market deposit accounts, statement savings accounts, and certificates of deposit. The company?s loan products portfolio comprises one-to-four family residential loans, multifamily loans, commercial real estate loans, construction/land development loans, and business loans, as well as consumer loans, including home equity loans, personal lines of credit, second mortgage loans, and savings account loans. First Financial Northwest, Inc., through another subsidiary, First Financial Diversified, Inc., offers escrow services. The company primarily serves customers in the King, Pierce, Snohomish, and Kitsap counties of Washington through a full-service banking office in Renton, Washington. First Financial Northwest, Inc. was founded in 1923 and is based in Renton, Washington.
- [By Jim Royal]
The special situation
For those of you following my Special Situations portfolio, Investors Bancorp is in a spot similar to First Financial Northwest (NASDAQ: FFNW ) and TFS Financial (NASDAQ: TFSL ) , both of which are featured substantially in the portfolio. While Investors Bancorp is still only a partially demutualized thrift (like TFS Financial today), it will soon become a fully public institution, like First Financial.
- [By Jim Royal]
One of my favorite reasons to reinvest in stocks I already own is when an uncertain, but favorable catalyst occurs, but the stock does little. So my Special Situations portfolio is adding $1,000 to each of the following three stocks: Cincinnati Bell (NYSE: CBB ) , Bridgepoint Education (NYSE: BPI ) , and First Financial Northwest (NASDAQ: FFNW ) . Read on to see why.
Top 10 Penny Stocks To Watch Right Now: Empresas Ica Soc Contrladora (ICA)
Empresas ICA, S.A.B. de C.V., through its subsidiaries, engages in the construction and related activities in Mexico. The company?s Civil Construction segment focuses on infrastructure projects that include the construction of roads, highways, mass transit systems, bridges, dams, hydroelectric plants, tunnels, canals, and airports; and on the construction, development, and remodeling of multi-storied urban buildings, such as office buildings, hotels, multiple-dwelling housing developments, and shopping centers. This segment also engages in demolition, clearing, excavation, de-watering, drainage, embankment fill, structural concrete construction, concrete and asphalt paving, and tunneling activities. Its Industrial Construction segment focuses on the engineering, procurement, construction, design, and commissioning of manufacturing facilities comprising power plants, chemical plants, petrochemical plants, fertilizer plants, pharmaceutical plants, steel mills, paper mills, d rilling platforms, and automobile and cement factories. Empresas ICA?s Rodio Kronsa segment engages in sub-soil construction involving the construction of tunnels, underpasses, and retaining walls. The company?s Housing Development segment engages in the development, trading, ownership, sale, assistance, operation, and administration activities. Its Infrastructure segment involves in the operation and maintenance of concessioned airports, highways, bridges and tunnels, water supply systems, and waste treatment systems. The company also provides a range of services that include feasibility studies, conceptual design, engineering, procurement, project and construction management, construction, maintenance, technical site evaluation, and other consulting services. It serves public and private sector clients. Empresas ICA, S.A.B. de C.V. was founded in 1947 and is based in Mexico.
- [By Roberto Pedone]
One under-$10 name that’s starting to trend within range of triggering a big breakout trade is Empresas ICA SA (ICA), which is engaged in construction and related activities, including the construction of infrastructure facilities as well as industrial, urban and housing construction. This stock is off to a decent start in 2013, with shares up 11.8%.
If you take a look at the chart for Empresas ICA SA, you’ll notice that this stock has been trending sideways inside of a consolidation chart pattern for the last two months, with shares moving between $7.94 on the downside and $9.73 on the upside. Shares of ICA are now starting to push back above its 50-day moving average of $8.75 a share, and the stock is quickly moving within range of triggering a big breakout trade. That trade will hit if ICA manages to take out the upper-end of its recent sideways trading chart pattern.
Traders should now look for long-biased trades in ICA if it manages to break out above some near-term overhead resistance levels at $9.34 to $9.73 a share and then once it clears its 200-day moving average at $9.94 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 527,965 shares. If that breakout triggers soon, then ICA will set up to re-test or possibly take out its next major overhead resistance levels at $11.50 to $12 a share. Any high-volume move above those levels could then put its 52-week high at $13.73 into focus for shares of ICA.
Traders can look to buy ICA off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $8 a share, or around $7.94 a share. One can also buy ICA off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
- [By Michael Lewis]
It’s been said plenty of times that our neighbor to the south is home to a burgeoning, debt-light economy that offers emerging-market growth with an element of domestic risk and valuation. China is very much “last season” when it comes to manufacturing, and Mexico offers a fantastic answer, with geographical superiority and an eager work force. One company based in Mexico, Empresas ICA (NYSE: ICA ) , is a heavy-construction firm with a market cap of $1 billion that was as recently as April worth nearly $2 billion. The causes for the haircut includes a collapsed deal and lousy first-quarter earnings. But with a strong outlook for Mexican infrastructure spending, and an apparent case of market negligence, Empresas ICA might be an undervalued pick with substantial upside potential.
- [By Roberto Pedone]
Empresas ICA (ICA) is engaged in a range of construction and related activities, including the construction of infrastructure facilities as well as industrial, urban and housing construction. This stock closed up 6.2% to $8.12 in Tuesday’s trading session.
Tuesday’s Range: $7.66-$8.24
52-Week Range: $6.14-$13.73
Tuesday’s Volume: 965,000
Three-Month Average Volume: 719,832
From a technical perspective, ICA ripped higher here right off its 50-day moving average of $7.48 with above-average volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $6.14 to its intraday high of $8.24. During that move, shares of ICA have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ICA into breakout territory, since the stock took out some near-term overhead resistance levels at $7.93 to $8.08.
Traders should now look for long-biased trades in ICA as long as it’s trending above its 50-day at $7.48 and then once it sustains a move or close above Tuesday’s high of $8.24 with volume that hits near or above 719,832 shares. If we get that move soon, then ICA will set up to re-test or possibly take out its next major overhead resistance levels at $9 to its 200-day moving average at $10.05. Any high-volume move above its 200-day will then put $11 to $11.77 into range for shares of ICA.
Top 10 Penny Stocks To Watch Right Now: China Ceramics Co. Ltd.(CCCL)
China Ceramics Co., Ltd. engages in the manufacture and sale of ceramic tiles used for exterior siding, interior flooring, and design in residential and commercial buildings primarily in the People’s Republic of China. It offers porcelain tiles, glazed tiles, glazed porcelain tiles, rustic tiles, and ultra-thin tiles under the Hengda, Hengdeli, TOERTO, and WULIQIAO brand names. The company primarily sells its products through a distributor network, as well as directly to property developers. China Ceramics Co., Ltd. is based in Jinjiang City, the People’s Republic of China.
- [By Lisa Levin]
China Ceramics Co (NASDAQ: CCCL) shares fell 2.40% to touch a new 52-week low of $1.63. China Ceramics shares have dropped 35.27% over the past 52 weeks, while the S&P 500 index has gained 19.70% in the same period.
Top 10 Penny Stocks To Watch Right Now: Prospect Capital Corporation(PSEC)
Prospect Capital Corporation is a mezzanine finance and private equity firm that specializes in late venture, middle market, mature, mezzanine, buyouts, recapitalizations, growth capital, development, and bridge transactions. It makes secured debt and equity investments. The firm typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. It invests in oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors. The firm prefers to invest in the United States and Canada. It seeks to invest between $5 million to $50 million in companies with EBITDA between $$ million and $75 million, sales value up to $500 million, and enterprise value of up to $250 million. The firm also co- invests for larger deals. It seeks control acquisitions by providing multiple levels of the capital structure. Prospect Capital Corporation was founded in 1988 and is based in New York, New York.
- [By Grass Hopper]
Examples of the first class of publicly ‐traded private equity firms include Kohlberg Kravis Roberts & Co. L.P. (KKR), The Blackstone Group L.P. (BX), and Oaktree Capital Group, LLC (OAK). Examples of the second class are Wendel SA (MF FP), Exor SpA (EXO IM) and, to some extent, Reinet Investments SCA (REI SJ). Examples of the third class are American Capital, Ltd. (ACAS), Main Street Capital, Gladstone Capital Corp. (MAIN), and Prospect Capital Corp. (PSEC).
- [By Lauren Pollock]
Prospect Capital Corp.(PSEC) said it agreed to buy Nicholas Financial Inc.(NICK) in a stock deal valued at about $199 million that the investment firm expects will expand its presence in the car-loan industry. Prospect Capital is offering $16 a share for Nicholas, a 4.5% premium over Tuesday’s closing price. Nicholas Financial shares edged up 2.8% to $15.70 premarket.
- [By James E. Brumley]
What do Prospect Capital Corporation (NASDAQ:PSEC), Astec Industries, Inc. (NASDAQ:ASTE), and First Financial Corp. (NASDAQ:THFF) have in common? Not much, on the surface. In fact, were it not for something very specific to one particular person (me), they’d have nothing in common at all. This week though, THFF, ASTE, and PSEC all have at least one thing in common, and that’s the fact that they’re all going into my mental/hypothetical portfolio.
- [By Dan Caplinger]
But one concern is that investors are paying too much for BDCs. Like Ares, peers Prospect Capital (NASDAQ: PSEC ) and Fifth Street Finance (NASDAQ: FSC ) also carry share prices that are higher than the net value of the assets on their books. Yet Ares trades at a substantially higher premiums to NAV than Prospect or Fifth Street, suggesting that they’re more comfortable with the quality of Ares’ assets compared to its rivals.
Top 10 Penny Stocks To Watch Right Now: Chimera Investment Corporation (CIM)
Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in residential mortgage-backed securities (RMBS), residential mortgage loans, commercial mortgage loans, real estate-related securities, and other asset classes. Its targeted asset classes include agency or non-agency RMBS; prime, jumbo prime, and Alt-A mortgage loans; first or second lien loans secured by multifamily properties, mixed residential or other commercial properties, retail properties, office properties, or industrial properties; and asset-based securities (ABS), including commercial mortgage-backed securities, debt and equity tranches of collateralized debt obligations, and consumer and non-consumer ABS. The company has elected to be treated as a REIT for federal income tax purposes and would not be subject to income tax, if it distributes at least 90% of its REIT taxable income to its share holders. Chimera Inve stment Corporation was founded in 2007 and is based in New York, New York.
- [By John Maxfield]
“Nepotism has never been unknown in American banking,” Martin Mayer wrote in The Greatest-Ever Bank Robbery, his 1990 book about the savings-and-loan crisis. While Mayer was referring to American Continental, the notoriously corrupt holding company run into the ground by the infamous Charles Keating in the 1980s, his point rings true today in the case of Annaly Capital Management (NYSE: NLY ) and its publicly traded portfolio company Chimera Investment (NYSE: CIM ) .
- [By Dan Caplinger]
Because of the requirement to pay out the vast majority of their income, REITs often have extremely high dividend payouts. Mortgage REITs ARMOUR Residential (NYSE: ARR ) and Chimera Investment (NYSE: CIM ) use leveraged strategies to produce yields well in excess of 10%, while Omega Healthcare (NYSE: OHI ) and Senior Housing Properties Trust (NYSE: SNH ) , which specialize in long-term care facilities and other properties catering to older residents, both have yields between 5% and 6%.
- [By Dan Caplinger]
Berkshire isn’t the only company where book value plays an important role. In the mortgage REIT realm, the value of the investment portfolio for a given mortgage REIT reduced by the REIT’s outstanding debt, sometimes referred to as net asset value rather than book value, gives valuable information about its relative valuation. Industry leader Annaly Capital (NYSE: NLY ) currently sports a price-to-book ratio of 0.96 based on its most recently provided figures, reflecting in part investor skepticism about whether the REIT’s agency-issued mortgage-backed securities will hold their value once the Federal Reserve stops making extensive bond purchases as part of its quantitative easing program. By contrast, Annaly’s non-agency-issued counterpart, Chimera Investment (NYSE: CIM ) , sports a price-to-book ratio of nearly 1.1, indicating a significant premium to the REIT’s stated net asset value that could be due to the fact that the Fed hasn’t focused its efforts on the alternative securities that Chimera tends to choose for its portfolio.
- [By Selena Maranjian]
Appaloosa Management reduced its stake in companies such as Chimera Investment (NYSE: CIM ) and Valero Energy (NYSE: VLO ) . Mortgage REIT Chimera Investment recently yielded 10.9%, but it may become less attractive if Congress cancels favorable tax treatment for REITs. Chimera has taken on more risk than many of its brethren, and has had some trouble filing reports on time. Some still like its prospects, though, while others question its hefty management fees.