There really is no way to deny it anymore: Elon Musk is a genius. The man has brought us the first mass-produced electric vehicle that’s profitable, and he’s also on the cusp of revolutionizing solar energy in the consumer and business segment through his solar panel leasing company SolarCity. But just because he’s a front-runner for CEO of the decade doesn’t mean I have to like his pride-and-joy EV-producing company, Tesla Motors (NASDAQ: TSLA ) .
I freely admit my biases toward Tesla. In fact, I’ll state upfront that last Thursday I went short shares of Tesla at $124.75 per share. Even before I share with you the reasoning that put me over the top and caused me to pull the trigger on this trade, let me expound on some of the reasons that have caused me to be leery about Tesla in the first place.
Source: OnInnovation, Flickr.
3 big reasons to avoid Tesla
Reason No. 1 is trust. Elon Musk has certainly delivered on his promise to bring mass-produced electric vehicles to America, but there have been a considerable number of broken promises along the way. Although Tesla Motors has managed to hit or beat production targets in two straight quarters, over the preceding two years there were far more missed targets than made. In fact, in March, Tesla announced that it was pushing back production of its Model X all-electric SUV to late 2014 from its expected production date of late 2013. I consider this just another in a series of pushbacks for Tesla, and regularly question whether it can meet its self-imposed deadlines.
Top 10 Services Stocks To Watch For 2015: Ship Finance International Limited(SFL)
Ship Finance International Limited, through its subsidiaries, engages in the ownership and operation of vessels and offshore related assets in Bermuda, Cyprus, Malta, Liberia, Norway, the United States, Singapore, the United Kingdom, and the Marshall Islands. The company also involves in the charter, purchase, and sale of assets. As of March 22, 2011, it owned 29 oil tankers, 8 oil/bulk/ore carriers, 3 dry bulk carriers, 9 container vessels, 2 jack-up drilling rigs, 3 ultra-deepwater drilling units, 6 offshore supply vessels, and 2 chemical tankers. The company offers its services to various sectors of shipping and offshore industry, including oil transportation, drybulk shipments, chemical transportation, container transportation, drilling rigs, and offshore supply vessels. Ship Finance International Limited was founded in 2003 and is based in Hamilton, Bermuda.
- [By Ben Levisohn]
While [Seadrill] will continue to lean on [Seadrill Partners (SDLP)] and potentially [Ship Finance International (SFL)] to meet its funding requirements, a lot has to break right for [Seadrill] to meet these funding requirements.
- [By James Brumley]
But they’re also potent. Not only do they contain the possibility for significant capital appreciation, but they also offer plenty as far as dividends are concerned. In fact, of the following four small caps, the weakest dividend yield is still a very healthy 8%.
Ship Finance International Limited (SFL)
SFL Dividend Yield: 9.1%
Top 10 Services Stocks To Watch For 2015: Booz Allen Hamilton Holding Corp (BAH)
Booz Allen Hamilton Holding Corporation (Booz Allen Holding), incorporated in May 2008, is a provider of management and technology consulting services to the United States government in the defense, intelligence and civil markets. In addition, it provides management and technology consulting services to corporations, institutions, and not-for-profit organizations. During the fiscal year ended March 31, 2012 (fiscal 2012), it derived 98% of its revenue from services provided to more than 1,200 client organizations across the United States government under more than 5,800 contracts and task orders. During fiscal 2012, it derived 90% of its revenue in fiscal 2012 from engagements, for which it acted as the prime contractor. On November 30, 2012, the Company purchased the Defense Systems Engineering and Support (DSES) division of ARINC Incorporated.
During fiscal 2012, the Company’s defense business revenue represented 53% of its bus iness. It works with its the United States Army clients to help sustain their land combat capabilities while responding to current demands and preparing for future needs. The services, which it provided include enhancing field intelligence systems, delivering rapid response solutions to counter improvised explosive devices, infusing lifecycle sustainment capabilities to improve distribution and delivery of material, and employing systems and consulting methods to help expand care and support for soldiers and their families. Its clients include Army Headquarters, Army Material Command (AMC), Forces Command (FORSCOM), Training and Doctrine Command (TRADOC), and Program Executive Offices, Direct Reporting Units and Army Service Component Commands.
The Company employs a multidimensional approach, which analyzes and balances people, processes, technology, and infrastructure to meet their missions of equipping global forces. Its clients include the Office of the Secre tary of the Navy, Chief of Naval Operations, the Commandant ! of the Marine Corps to the Office of Naval Intelligence, and the United States Navy/Marine Corps operating commands and systems commands, as well as the Joint Program Executive Offices (PEO) and individual PEOs, such as Naval Air Systems Command (NAVAIR), Naval Seas Systems Command (NAVSEA), United States Marine Corps Systems Command, and Space and Naval Warfare (SPAWAR).
The Company provides integrated strategy and technical services to the United States Air Force. It brings capabilities to assignments, which includes weapons analysis, capability-based planning, and aircraft systems engineering. It also supports the space industry. Its clients include Air Combat Command, Air Force Space Command, Air Force Materiel Command, Air Mobility Command, Air Force Cyber Command, Air Force Pacific Command and National Aeronautics and Space Administration (NASA).
The Company provides mission-critical support to the Office of the Secretary of Defense, the Joint Staff, the Combatant Commands (COCOMs), and other the United States government departments and agencies during the planning and mission execution phases. Its clients include organizations within the Office of the Secretary of Defense and the Department of Defense’s agencies, as well as the Pacific Command, Northern Command, Central Command, the Defense Information Systems Agency (DISA), Southern Command, European Command, Strategic Command, Special Operations Command, and Transportation Command.
The Company provides solutions designed to protect infrastructure systems for the public and private sector to its United States government defense and intelligence agency clients to meet cyber warfare threats. Its cyber professionals handles the sensitive materials, assist clients in all phases of cyber-security operations and dynamic network defense. It develops cyber-security solutions utilizing a multi-dimensional approach, including people, operations, technology , policy, and management.
The Company provides the primary group of government agencies and organizations, which carry out intelligence activities for the United States government (the United States Intelligence Community), with consulting and mission support services in analysis, systems engineering, program management, operations, organization, and change management, budget and resource management, studies, and war-gaming. During fiscal 2012, its intelligence business represented 23% of its business based on revenue. Its intelligence clients include United States Intelligence Agencies, Joint Staff and Unified Combatant Commands, and Military Intelligence.
The Company provides critical support in strategic planning, policy development, program development and execution, information sharing, architecture, and program management for research and development projects, as well as support to reform initiatives flowing from the Intelligence Reform and Terrorism Protection Act. It deliver s intelligence analysis, including providing all-source intelligence analysis and open-source intelligence analysis. It also provides data collection management and analytical systems intelligence training services, and provides intellectual capital for intelligence activities. It provides consulting services, integrated intelligence and information operations mission support, and a range of counterintelligence services to the United States Army, United States Air Force, United States Navy, Marine Corps, and Defense Intelligence Agency.
During fiscal 2012, the Company’s civil business represented 24% of its business based on revenue. Its civil government clients include Financial Services, Health, Energy, Transportation and Environment, Justice and Homeland Security, and Business of Government. The Company provides support to the United States government finance and treasury organizations charged with the collection, management, and protection of the United States financial system, including ! the Depar! tment of the Treasury, Internal Revenue Service, and other agencies of the Department of the Treasury, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Federal Reserve Board and Banks, the Securities and Exchange Commission (SEC), and Pension Benefit Guaranty Corporation. It creates approaches to challenging problems, including bank receivership, payment channel modernization, cyber initiatives, and fraud detection.
The Company supports United States government clients on projects, which helps to achieve public health missions, including entitlement reform, developing a national health information network, mitigating risk to populations, improving government infrastructure, and facilitating an international public-private sector dialogue on international health issues. Its clients include the Department of Health and Human Services and its agencies, including the United States Food and Drug Administration, National Institutes of Health, Centers for Disease Control and Prevention (CDC), the Centers for Medicare and Medicaid Services, the Department of Defense Military Health System, and Department of Veterans Affairs.
The Company supports clients in the transportation, energy, and environment sectors which controls over its national infrastructure. Its services include strategy, operations, technology, and engineering. Its clients include the Departments of Energy, Transportation, and Interior and their component agencies, and the Environmental Protection Agency. It also supports the Department of Defense in environmental and infrastructure programs in the United States and Europe. The Company supports the United States government’s homeland security mission and operations in the areas of intelligence (analysis, information sharing, and risk assessment), operations (coordination, contingency planning, and decision support), strategy, technology and management (program management and i nformation technology tools), emergency management and respo! nse plann! ing, and border, cargo, and transportation security. It supports law enforcement missions and operations in counterterrorism, intelligence and counterintelligence, and criminal areas (narcotics, white collar crime, organized crime, and violent crime).
The Company helps agencies manage the business processes, which support government in its provision of services to its citizens, spanning management, personnel, budget operations, information technology, and telecommunications. Its clients include the General Services Administration, Office of Management and Budget, Office of Personnel Management, the Congress and Courts. It also support public sector grant-making agencies, from health and education, to labor and homeland and economic security, serving clients, such as the Departments of Agriculture, Homeland Security, Commerce, Education, Labor, and Housing and Urban Development, as well as the National Science Foundation. In addition, it serves the United States government clients abroad in helping them resolve systemic global development needs. Its clients include the United States Agency for International Development, the Department of State, Millennium Challenge Corporation, and the World Bank.
Commercial and International Clients
The Company is serving industries, such as financial services, healthcare, and energy. Its service offerings to commercial clients include dynamic defense (cyber), next-generation virtual infrastructure, decision analytics, design for affordability, and smart compliance. Its commercial clients include major commercial banks and investment banks, healthcare providers, energy companies, and utilities. Its international activities are focused on the Middle East and North Africa region. Its service offerings to international clients focuses on on-line government services and cloud applications, enterprise resource planning, advanced persistent threat resolution, supervisory control and data acquisition, and geospatial systems. Its internati! onal clie! nts include government ministries and commercial companies in the Middle East and North Africa.
The Company competes with CACI International, Inc., L-3 Communications Holdings, Inc., ManTech International Corp., SRA International, Inc., TASC Inc., General Dynamics Corp., Lockheed Martin Corp., Northrop Grumman Corp., Raytheon Co., Accenture, Computer Sciences Corp., Deloitte Consulting LLP and SAIC, Inc.
- [By Tom Rojas and Maria Armental var popups = dojo.query(“.socialByline .popC”); ]
Booz Allen Hamilton Holding Corp.(BAH) said earnings in its September quarter fell 4% as the consulting company continues to struggle with tepid spending from federal government clients.
- [By Maria Armental and Tess Stynes var popups = dojo.query(“.socialByline .popC”); ]
Booz Allen Hamilton Holding Corp.(BAH) said its fiscal fourth-quarter earnings declined 14% as the consulting company reported weaker revenue amid uncertainties about government spending. Still, adjusted earnings beat expectations.
- [By Rich Smith]
On Tuesday, the Department of Defense awarded contractor Booz Allen Hamilton (NYSE: BAH ) a contract worth an estimated $65.6 million to support the Defense Readiness Support System-Navy.
- [By Rich Smith]
The Department of Defense awarded nine contracts worth a combined $239.5 million Monday. Among public companies, a few of the bigger winners included:
General Electric (NYSE: GE ) won a $45.2 million award exercising an option on a previously awarded contract. GE will supply the U.S. Navy with seven F414-GE-400 spare engines and multiple engine components for its F/A-18E/F fighter jets. This contract should be complete by November 2015. Booz Allen Hamilton (NYSE: BAH ) is a winner in a $30.9 million award under an indefinite-delivery/indefinite-quantity (IDIQ), cost-plus-fixed-fee, multiple-award contract “for support of emerging navigation technologies for air and shipboard command, control, communications, computers, intelligence, surveillance, reconnaissance system applications.” The DoD’s contract announcement said a second, unnamed contractor has won a similar award, and both awardees will now have to compete for individual task orders the Navy may put up for bid over the next three years. Additionally, this contract may be extended by a two-year option period — potentially raising the value of the contract to $52.7 million, and potentially extending the contract out to May 5, 2016. B/E Aerospace (NASDAQ: BEAV ) was awarded an unrelated maximum $6.6 million contract. B/E will supply various engine parts, avionics, wheels, and brakes to the U.S. Army, Navy, and Air Force, as needed through May 5, 2017.
Top 10 Services Stocks To Watch For 2015: Medical Marijuana Inc (MJNA.PK)
Medical Marijuana Inc. (MJNA), incorporated on May 23, 2005, is the publicly held company vested in the medical marijuana and industrial hemp markets. The Company is comprised of a diversified portfolio of products, services, technology and businesses solely focused on the cannabis and hemp industries. These products range from patented based cannabinoid products, to whole plant or isolated high value extracts specifically manufactured and formulated for the pharmaceutical, nutraceutical and cosmeceutical industries. In March 2013, it sold certain equipment and inventory, web domain names, phone numbers, and all existing and pending agreements with hemp production and processing facilities to CannaVEST Corp.
The Company’s services are varied, ranging from medical clinic management to the capitalization and development of existing industry business and product leaders. Services include development of cannabinoid based health and wellness products, and the development of medical grade compounds. MJNA provides over 50 and patented cannabinoid delivery methods that are more socially and medically acceptable than smoking.
- [By Alan Brochstein]
Taking into account all of the data I have shared, I want to introduce my take on the most important names to follow. My initial list takes into account not only the market cap, but also business model and interest level. These are the stocks that I think merit the most attention (in alphabetical order):
CannaVest (CANV.OB)GW Pharma (GWPH)MedBox (MDBX.PK)Medical Marijuana, Inc. (MJNA.PK)
CANV doesn’t really trade, as it is held closely by insiders (99.7%, including MJNA). I have a few concerns, including the valuation and some near-term financial challenges typical of a start-up with just one client looking to expand its customer base, but I like the focus and the fact that it is an SEC filer with a relatively clean history (i.e. none of the baggage of some of these other companies). I have spoken to its outsourced CFO and am impressed by his background (has been CFO or held key financial roles at publicly-traded healthcare companies). CANV is the partner to MJNA that is responsible for manufacturing the CBD (Cannibidiol, the cannabinoid in marijuana that is increasingly viewed as offering substantial medical benefits). I am very concerned about the near-term financials, but this is a pure-play with probably a two-year lead over other companies. I don’t see a moat in terms of intellectual property or brands, but they have a good lead in terms of sourcing of supply and penetration into potential customers. Quite simply, they don’t appear to have competition at present. The company, then, is a call option on CBD demand taking off. It appears that it could be a supplier to even Big Pharma should medical marijuana research move into the mainstream.
Top 10 Services Stocks To Watch For 2015: RCS Capital Corp (RCAP)
RCS Capital Corporation, incorporated on December 27, 2012, is a holding company. The Company is engaged in the business of wholesale broker-dealer, investment banking and capital markets business, a transaction management services provider and a transfer agent. The Company is externally managed and advised by RCS Capital Management, LLC. The Company owns interest in the subsidiaries of RCAP Holdings, LLC, which it refers to as the Company’s operating subsidiaries. These subsidiaries are Realty Capital Securities, LLC (Realty Capital Securities), American National Stock Transfer, LLC, and RCS Advisory Services, LLC. Realty Capital Securities, LLC is engaged in wholesale broker-dealer business. RCS Advisory Services, LLC is engaged in transaction management services business. American National Stock Transfer, LLC is engaged in transfer agent business. In September 2014, the Company acquired Strategic Capital Advisory Services and SC Distributors, LLC.
The Com pany’s wholesale broker-dealer is a wholesale distribution of publicly registered non-traded real estate and business development company securities. Operating under the name RCS Capital, the Company’s investment banking and capital markets business provides strategic advisory and capital markets services with a focus on the direct investment program industry, including sourcing, structuring and maintaining a range of debt finance and derivative arrangements on behalf of its clients. Operating under the name RCS Capital, the Company’s transaction management services provides a range of services to direct investment programs, publicly traded real estate investment trust (REITs) and their sponsors, including offering registration and blue sky filings, regulatory advice with respect to the Securities and Exchange Commission (SEC), and Financial Industry Regulatory Authority, Inc (FINRA) registration maintenance, transaction management, marketing support, due diligence adv ice and related meetings, events, training and education, co! nference management and strategic advice in connection with liquidity events and other strategic transactions. American National Stock Transfer, LLC is registered as a transfer agent with the SEC and will act as a registrar, provide record-keeping services and execute the transfer, issuance and cancellation of shares or other securities in connection with offerings conducted by issuers sponsored directly or indirectly by American Realty Capital.
- [By Jayson Derrick]
RCS Capital (NYSE: RCAP) said that it will no longer pursue its $700-million acquisition of Cole Capital Advisors from American Realty Capital (NASDAQ: ARCP). Shares of RCS Capital hit new 52-week lows of $13.55 before closing the day at $13.69, down 16.58 percent. Shares of American Realty Capital also hit new 52-week lows of $7.38 before closing the day at $7.85, down 11.50 percent.
Top 10 Services Stocks To Watch For 2015: Denny’s Corporation(DENN)
Denny’s Corporation, through its subsidiaries, engages in the ownership and operation of a chain of family-style restaurants. The company operates traditional American-style food restaurants under the Denny?s brand name. As of December 28, 2011, it had 1,479 franchised/licensed restaurants and 206 company-owned and operated restaurants in the United States, Canada, Costa Rica, Mexico, Honduras, Guam, Puerto Rico, and New Zealand. The company was founded in 1980 and is headquartered in Spartanburg, South Carolina.
- [By Alanna Petroff]
After the close, we’ll hear from Twitter (TWTR, Tech30), Buffalo Wild Wings (BWLD), Crocs (CROX) and Denny’s (DENN).
4. Economics: At 10 a.m. ET, the government will release data on September pending home sales.
- [By Peter Graham]
The Q4 2014 earnings report for restaurant stock Bob Evans Farms Inc (NASDAQ: BOBE), a potential peer of Cracker Barrel Old Country Store, Inc. (NASDAQ: CBRL), Denny’s Corporation (NASDAQ: DENN) and DineEquity Inc (NYSE: DIN), is scheduled for after the market closes on Tuesday. Aside from the Bob Evans Farms report, it should be said that Cracker Barrel Old Country Store, Inc reported Q3 2014 earnings on May 28th (revenues and profit rose on lower expenses); Denny’s Corporation reported Q1 2014 earnings on April 28th (they had their strongest quarter of same-store sales at company restaurants in over seven years); and DineEquity Inc reported Q1 2014 on May 1st (earnings rose on stronger sales). However, Bob Evans Farms recently replaced three board members with new independent directors after facing criticism from shareholder Sandell Asset Management Corp.
- [By Michael Lewis]
Family-style restaurant chain Denny’s (NASDAQ: DENN ) delivered earnings early this week, and the numbers weren’t so shabby, but they also weren’t much to rally behind. Denny’s as a concept has long been considered dated, and many of its peers are finding it difficult to attract new customers. But the largely franchised chain is actually seeing more customers coming through the doors and higher transactions, if only slightly. Of course, there is much more data to digest and analyze beyond one period’s store-level sales growth, but investors should keep in mind that this is a chain that’s looking toward 2,000 locations — making it one of the largest of its kind. Here’s what investors need to know.
- [By Ben Levisohn]
Shares of Cracker Barrel have gained 0.9% to $113.29 and Biglari Holdings (BH), Sandar Biglari’s holding company, has fallen 0.4% to $516.96, on a day when DineEquity has advanced 1% to $85.03, Red Robin Gourmet Burgers (RRGB) has risen 0.5% to $76.64 and Denny’s (DENN) is up 0.7% at $7.45.
Top 10 Services Stocks To Watch For 2015: Stericycle Inc (SRCL)
Stericycle, Inc., incorporated on March 21, 1989, is in the business of managing regulated waste and providing an array of related and complementary services. The Company operates in the United States, Argentina, Brazil, Canada, Chile, Ireland, Japan, Mexico, Portugal, Romania, Spain, and the United Kingdom. The regulated waste services the Company provides include medical waste disposal, its Steri-Safe medical waste and compliance program, its Clinical Services program, its Bio Systems reusable sharps disposal management services, pharmaceutical waste disposal, and hazardous waste disposal. In addition to the Company’s regulated waste services, the Company offers regulated recall and returns management services, patient communication services, and medical safety products. The Company’s regulated recall and returns management services consist of a number of solutions for a variety of businesses but consist primarily of managing the recall, withdrawal or return of expired o r recalled products and pharmaceuticals. During the year ended December 31, 2012, it completed 41 acquisitions, of which 17 were domestic businesses and 24 were international businesses in Latin America, Europe, and Japan. In August 2013, Stericycle Inc acquired Eclipse Marketing.
The Company also provides communication services to healthcare providers to improve office productivity and communications with patients. As of December 31, 2012, the Company’s worldwide networks included a total of 153 processing facilities, 141 transfer sites, and 64 recall and returns or communication services facilities. The Company serves approximately 541,000 customers worldwide, of which approximately 16,500 are large-quantity generators, such as hospitals, blood banks and pharmaceutical manufacturers, and approximately 524,500 are small-quantity generators, such as outpatient clinics, medical and dental offices, long-term and sub-acute care facilities, veterinary offices, muni cipalities and retail pharmacies. For large-quantity generat! ors of regulated waste such as hospitals and for pharmaceutical companies and distributors, the Company offers its regulated waste management services; its Bio Systems reusable sharps disposal management services; its pharmaceutical waste services; its Integrated Waste Stream Solutions (IWSS) program; a variety of products and services for infection control; its regulated recall and returns management services for expired or recalled products and pharmaceuticals, and variety of patient communication services. For small-quantity generators of regulated waste such as doctors’ offices or retail pharmacies, the Company offers its Steri-Safe OSHA, HIPAA compliance, and clinical services programs.
The Company supplies specially designed reusable leak-resistant and puncture-resistant plastic containers to most of its large-quantity customers and many of its larger small-quantity customers. The Company collects containers or corrugated boxes of regulated waste from its customers depending upon customer requirements, contract terms and volume of waste generated. The waste is then transported directly to one of the Company’s processing facilities or to one of its transfer stations where it is combined with other regulated waste and transported to a processing facility. The Company collects some expired or recalled products, but more typically, customer ships them directly to its processing facilities. Upon arrival at a processing facility, containers or boxes of regulated waste are typically scanned to verify that they do not contain any unacceptable substances like radioactive material. The regulated waste is then processed using one of the Company’s various treatment or processing technologies. Upon completion of the particular process, the resulting waste or incinerator ash is transported for resource recovery, recycling or disposal in a landfill owned by an unaffiliated third party. The Company provides complete documentation to its cust omers for all regulated waste that the Company collect in ac! cordance ! with applicable regulations and customer requirements.
- [By WWW.GURUFOCUS.COM]
Stericycle (SRCL) alone operates globally and generates close to $2 billion in annual revenues. Despite Stericycle’s strong business performance during the recently reported quarter, the stock detracted from performance, partially driven by headlines of rumored regulatory action related to one of the Company’s incinerators. We believe the issue is not meaningful to results and we would be willing to add to shares on pullbacks related to this. Stericycle’s stock trades in the mid to high-‐teens EBITDA range, but the company routinely purchases smaller competitors for just 3X-‐6X EBITDA. This accretion is a byproduct of Stericycle’s competitive positioning and we believe it paves a multi-‐year runway for double-‐digit growth.From David Rolfe (Trades, Portfolio)’s Wedgewood Partners first quarter 2014 commentary.
Also check out: David Rolfe Undervalued Stocks David Rolfe Top Growth Companies David Rolfe High Yield stocks, and Stocks that David Rolfe keeps buying
Rating: 0.0/5 (0 votes)
- [By Holly LaFon]
Stericycle (SRCL) alone operates globally and generates close to $2 billion in annual revenues. Despite Stericycle’s strong business performance during the recently reported quarter, the stock detracted from performance, partially driven by headlines of rumored regulatory action related to one of the Company’s incinerators. We believe the issue is not meaningful to results and we would be willing to add to shares on pullbacks related to this. Stericycle’s stock trades in the mid to high-‐teens EBITDA range, but the company routinely purchases smaller competitors for just 3X-‐6X EBITDA. This accretion is a byproduct of Stericycle’s competitive positioning and we believe it paves a multi-‐year runway for double-‐digit growth.
- [By Jonas Elmerraji]
We’re seeing the exact same setup in shares of Stericycle (SRCL), but with one big difference: This stock hasn’t broken out yet. Stericycle is another ascending triangle pattern, in this case with a resistance level at $120. A breakout above that $120 price ceiling is the signal that it’s time to take this trade.
Whenever you’re looking at any technical price pattern, it’s critical to think in terms of buyers and sellers. Triangles and other pattern names are a good quick way to explain what’s going on in a stock, but they’re not the reason it’s tradable instead, it all comes down to supply and demand for shares.
That $120 resistance level is a price where there has been an excess of supply of shares; in other words, it’s a place where sellers have been more eager to step in and take gains than buyers have been to buy. That’s what makes a breakout above it so significant — the move means that buyers are finally strong enough to absorb all of the excess supply above that price level.
Don’t be early on the SRCL trade.
- [By Jonas Elmerraji]
First up is $10 billion medial waste disposal company Stericycle (SRCL). While SRCL has more or less only kept pace with the broad market in 2013, shares are at the point where they’re looking primed to pop into December trading. Here’s why.
Stericycle is currently forming an ascending triangle setup, a bullish price pattern that’s formed by a horizontal resistance level above shares at $120 and uptrending support to the downside. Basically, as SRCL bounces in between those two technically-important price levels, it’s getting squeezed closer and closer to a breakout above the $120 level. When that breakout happens, we’ve got a buy signal.
Whenever you’re looking at any technical price pattern, it’s critical to think in terms of those buyers and sellers. Triangles and other pattern names are a good quick way to explain what’s going on in a stock, but they’re not the reason it’s tradable instead, it all comes down to supply and demand for shares.
That $57 resistance level is a price where there has been an excess of supply of shares; in other words, it’s a place where sellers have been more eager to step in and take gains than buyers have been to buy. That’s what makes a breakout above it so significant — the move means that buyers are finally strong enough to absorb all of the excess supply above that price level.
Since HSBC is a longer-term pattern, the 200-day moving average is the spot to keep a stop loss after buying. It’s been a pretty good proxy for support on the way up.
Top 10 Services Stocks To Watch For 2015: Sprint Corp (S&LS)
Sprint Corporation, incorporated on May 10, 2012, offers a range of wireless and wireline communications services to consumers, businesses and government users. On July 10, 2013, the Company, SoftBank Corp. and Sprint Nextel Corporation (Sprint Nextel) completed the merger. In the Merger, Sprint Corporation was merged into Sprint Nextel, New Sprint became the parent company of Sprint Nextel, with Sprint Nextel becoming its direct wholly owned subsidiary, and Sprint Nextel changed its name to Sprint Communications, Inc.
The Company develops, engineers and deploys technologies, including the first wireless fourth generation (4G) service from a national carrier in the United States; offering mobile data services, prepaid brands, including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities, and a global Tier 1 Internet Service. The Company also offers unlimited data services.
- [By Holly LaFon]
Since Wilmers & Co. took over M&T Bank in 1983 the bank has acquired 23 banks and Savings and Loans (S&Ls) – expanding from a single state to seven – and assets have grown from $2 billion to $110 billion. M&T’s branch count has grown from 60 to over 870. The bank currently boasts a customer base of over 2 million retail household customers and nearly 220,000 commercial customers.
Top 10 Services Stocks To Watch For 2015: Tiffany & Co.(TIF)
Tiffany & Co., through its subsidiaries, engages in the design, manufacture, and retail of fine jewelry worldwide. Its jewelry products include fine and solitaire jewelry; diamond engagement rings and wedding bands for brides and grooms; and non-gemstone, sterling silver, gold, and platinum jewelry. The company also provides timepieces, sterling silver goods, china, crystal, stationery, fragrances, personal accessories, and leather goods. Tiffany & Co. sells its products through retail sales, Internet and catalog sales, business-to-business sales, and wholesale distribution primarily in the Americas, the Asia-Pacific, and Europe. The company also sells its products through its stores, as well as through department store boutiques in Japan. As of January 31, 2011, it operated 233 TIFFANY & CO. stores and boutiques worldwide. The company was founded in 1837 and is headquartered in New York, New York.
- [By Ben Levisohn]
Just as someone looking to buy an engagement ring can’t go wrong with Tiffany (TIF), the luxury-retailers stock has been a must-have item for investors. The latter could be about to change, however, not the folks at Credit Suisse. Analyst Christian Buss and team explain:
Given increasing concerns of slowing demand trends out of [Asia Pacific], we believe that opportunities for earnings upside [at Tiffany] are more limited in 2H and 2015. With multiples now above the historical median of 20x forward P/E, we believe share-price appreciation from here will prove more limited as a result.
…we are downgrading Tiffany to Neutral and maintaining our Target Price of $112.
But even as Buss downgraded Tiffany, he had kinder words for L Brands (LB), which was upgraded to Outperform from Neutral:
[We] are upgrading LB to Outperform given potential for margin-led earnings upside over the next 6-9 months. We also raise our Target Price to $73 from $ 65…
We are adjusting our FY14 comp, revenue and EPS estimates to 2.8%, $11,306M and $3.26 from 2.9%, $11,367M, and $3.26. Our FY15 comp, revenue and EPS estimates go to 3.9%, $12,120M and $3.71 from 3.7%, $12,411M and $3.71.
Shares of Tiffany have dropped 0.6% to $100.96, while L Brands has gained 1% to $64.32.
- [By MONEYMORNING.COM]
Retail Stocks to Watch No. 5: Apple Inc. (Nasdaq: AAPL)
One-year retail sales growth: 11%
Total 2013 U.S. sales: $26.6 billion
The rocky ride for Apple stock last year had little connection to its steady U.S. retail sales, which rose 11% last year. Apple’s retail stores have proven astonishingly successful, and sell more per square foot – $4,551 – than any other retailer. (Tiffany & Co. (NYSE: TIF) is third at $3,043 per square foot.) Apple’s iPhone 6, due to be unveiled Sept. 9, will probably push the tech giant’s retail sales growth even higher in 2014. AAPL closed at $103.30.
- [By Ben Levisohn]
Tiffany (TIF) has risen 2.6% to $103.40 after the luxury retailer easily topped earnings and revenue forecasts and lifted its full year guidance.
Chico’s FAS (CHS) has fallen 5.7% to $15.10 after the purveyor of women’s clothing missed earnings and revenue forecasts as discounting hit profit margins.
- [By Laura Brodbeck]
Next week investors will be waiting for several key earnings reports including Best Buy (NYSE: BBY), Dollar General (NYSE: DG), Abercrombie & Fitch (NYSE: ANF) and Tiffany & Co (NYSE: TIF).
Top 10 Services Stocks To Watch For 2015: Five Star Quality Care Inc (FVE)
Five Star Quality Care, Inc. (Five Star), incorporated in April 2000, operates senior living communities, including independent living communities, assisted living communities and skilled nursing facilities (SNFs). As of December 31, 2011, the Company operated 245 senior living communities located in 30 states containing 27,159 living units, including 207 primarily independent and assisted living communities with 23,736 living units and 38 SNFs with 3,423 living units. The Company owns and operates 31 communities (2,954 living units), lease and operate 191 communities (20,811 living units), and manage 23 communities (3,394 living units). Its 245 senior living communities included 8,699 independent living apartments, 13,069 assisted living suites and 5,391 skilled nursing units. During the year ended December 31, 2011, the Company discontinued its operations on two SNFs owned and operated by it containing 271 living units and one assisted living community leased from Senior Housing Properties Trust (SNH) and operated by it containing 103 living units. In September 2012, it sold its pharmacy business to Omnicare, Inc. Effective December 31, 2013, Five Star transferred the operations of two rehabilitation hospitals, which included New England Rehabilitation Hospital located in Woburn and Braintree Rehabilitation Hospital located in Braintree, to entities affiliated with Reliant Hospital Partners, LLC.
As of December 31, 2011, the Company leased and operated two rehabilitation hospitals with 321 beds that provide inpatient rehabilitation services to patients at the two hospitals and at three satellite locations. In addition, it leased and operated 13 outpatient clinics affiliated with these rehabilitation hospitals. It also owns and operate five institutional pharmacies. In 2011, the Company acquired from unrelated parties seven assisted living communities containing 854 living units with one located in Arizona and the other six loc ated in Indiana, or the Indiana Communities. It also commenc! ed leasing from SNH six senior living communities containing 724 living units with one located in each of Illinois and Florida and two located in each of North Carolina and Virginia.
Independent Living Communities
Independent living communities provide privacy to residents and require residents to be capable of independence. An independent living apartment usually bundles several services as part of a regular monthly charge. In addition, services are available from staff employees on a fee for service basis. As of December 31, 2011, its business included 8,699 independent living apartments in 75 communities that it operated or managed.
Assisted Living Communities
Assisted living communities consists of one bedroom units which include private bathrooms and kitchens. Services bundled within one charge usually include three meals per day in a central dining room, daily housekeeping, laundry, medical reminders and around the cl ock availability of assistance with the activities of daily living such as dressing and bathing. Professional nursing and healthcare services are usually available at the community as requested or at regularly scheduled times. As of December 31, 2011, its business included 13,069 assisted living suites in 185 communities that it operated or managed. .
Skilled Nursing Facilities
SNFs provide nursing and healthcare services similar to those available in hospitals. A purpose built SNF includes one or two beds per room with a separate bathroom in each room and shared dining facilities. SNFs are staffed by licensed nursing professionals 24 hours per day. As of December 31, 2011, its business included 5,391 skilled nursing units in 69 communities.
Rehabilitation hospitals, which are also known as inpatient rehabilitation facilities (IRFs), provide intensive physical therapy, occupational therapy and speec h language pathology services. Patients in IRFs receive a mi! nimum of ! three hours of rehabilitation services daily. IRFs also provides radiology, laboratory, telemetry, hemodialysis and orthotics/prosthetics services. Outpatient satellite clinics are often included as part of the services offered by IRFs. As of December 31, 2011, its two rehabilitation hospitals had 321 beds available for inpatient services and provided rehabilitation services at the two hospitals and three satellite locations. In addition, it operates 13 outpatient clinics affiliated with its rehabilitation hospitals where patients discharged from hospitals can continue their therapy programs and receive amputee, brain injury, neurorehabilitation, cardio-pulmonary, orthopedic, spinal cord injury and stroke rehabilitation services.
Institutional pharmacies provide drugs at locations where patients with recurring pharmacy requirements are concentrated. The Company’s five institutional pharmacies are located in six leased comm ercial spaces and one owned commercial building containing a total of approximately 67,759 square feet plus parking areas for its employees and delivery vehicles.
- [By Laura Brodbeck]
Earnings Expected From: Five Star Quality Care, Inc. (NYSE: FVE), Maximus, Inc. (NYSE: MMS), Nustar Energy (NYSE: NS), D.R. Horton, Inc. (NYSE: DHI), DISH Network Corporation (NASDAQ: DISH) Economic Releases Expected: German CPI, British CPI, British PPI, US Redbook, Indian manufacturing output, Indian industrial production
- [By Keith Speights]
The sky didn’t fall, but it might have seemed like it this week for shareholders of Five Star Quality (NYSE: FVE ) . The stock dropped 21% after the operator of long-term-care facilities reported quarterly earnings.
Top 10 Services Stocks To Watch For 2015: Chemed Corp (CHE)
Chemed Corporation (Chemed), incorporated on April 2, 1970, purchases, operates and divests subsidiaries engaged in diverse business activities. During the year ended December 31, 2012, Chemed operated in two segments: the Vitas segment (Vitas) and the Roto-Rooter segment (Roto-Rooter). Vitas Healthcare Corporation focuses on hospice care, which helps make terminally ill patients’ final days as comfortable as possible. Through its team of doctors, nurses, home health aides, social workers, clergy and volunteers, VITAS provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. Roto-Rooter provides plumbing and drain cleaning services to both residential and commercial customers. Its VITAS Healthcare Corporation (VITAS) subsidiary has acquired the operating assets of Houston-based Solari Hospice Care, effective April 1, 2013.
The VITAS segment provides hospice servi ces for patients with terminal illnesses. This type of care is aimed at making the terminally ill patient’s end of life as comfortable and pain-free as possible. Hospice care is available to patients who have been initially certified or re-certified as terminally ill by their attending physician, if any, and the hospice physician. VITAS offer all levels of hospice care in a given market, including routine home care, inpatient care and continuous care. During 2012, over 90% of VITAS’ revenues are derived through the Medicare and Medicaid reimbursement programs.
The Roto-Rooter segment provides repair and maintenance services to residential and commercial accounts using the Roto-Rooter registered service marks. Such services include plumbing and sewer, drain and pipe cleaning. They are delivered through Company-owned and operated territories, independent contractor-operated territories and franchised locations. This segment als o manufactures and sells products and equipment used to prov! ide such services.
The Company competes with Gentiva Health Services, Inc.
- [By Benjamin Shepherd] Companies can become attractive value opportunities for a variety of reasons, such as a short-term drop in earnings or residence in an out-of-favor industry. In some instances, uncommon variables make a company difficult to value.
The latter is the case with Chemed Corp (NYSE: CHE).
- [By Sean Williams]
What: Shares of Chemed (NYSE: CHE ) , the nation’s largest for-profit hospice care provider, nosedived 24% after the company announced the receipt of a false claims action complaint by the U.S. government.