Economic data this morning was weaker than expected, and stock markets have had mixed reactions in trading today. The Dow Jones Industrial Average (DJINDICES: ^DJI ) is up 0.58% near the end of trading on the back of big gains for Merck (NYSE: MRK ) and Intel (NASDAQ: INTC ) , but the Nasdaq is down 0.15%, while the broad S&P 500 (SNPINDEX: ^GSPC ) is only up 0.25%.
The major economic news was a 49 reading for the Institute for Supply Management’s U.S. manufacturing index. A reading of less than 50 indicates contraction in manufacturing, so this is a small sign that the economy is slowing.
On a company level, Merck leads the Dow with a 3.6% gain after presenting results from an early-stage cancer treatment. A drug called lambrolizumab was said to significantly shrink tumors in 38% of patients with advanced melanoma — a remarkably good result for a cancer drug. The drug is still in early development stages, but the FDA has already given it a “breakthrough therapy” designation, which should speed up the approval process.
Top 10 Warren Buffett Stocks To Own For 2014: First Trust Health Care AlphaDEX Fund (FXH)
First Trust Health Care AlphaDEX Fund (the Fund) is an exchange-traded fund. The Fund seeks investment results that correspond generally to the price and yield of an equity index called the StrataQuant Health Care Index (the Index). The Index is an enhanced index created and administered by the AMEX, which employs the AlphaDEX stock selection methodology to select stocks from the Russell 1000 Index. The AMEX constructs the Index by ranking the stocks, which are members of the Russell 1000 Index on growth factors, including 3, 6 and 12-month price appreciation, sales to price and one-year sales growth, and separately on value factors, including book value to price, cash flow to price and return on assets. The selected stocks are divided into quintiles based on their rankings and the top ranked quintiles receive a higher weight within the Index. The Index is reconstituted and rebalanced quarterly. The Fund’s investment advisor is First Trust Advisors L.P. Advisors’ Opinion:
- [By David Fabian]
Another interesting ETF that treads the line between passive and active investing in the healthcare field is the First Trust Health Care AlphaDEX Fund (FXH). This ETF is a smart beta strategy that screens healthcare stocks for book value, cash flow, and return on assets.
Top 10 Warren Buffett Stocks To Own For 2014: Apollo Commercial Real Estate Finance (ARI)
Apollo Commercial Real Estate Finance, Inc., a real estate investment trust, engages in originating, acquiring, investing in, and managing performing commercial first mortgage loans, commercial mortgage-backed securities, mezzanine financings, and other commercial real estate-related debt investments in the United States. The company is qualified as a real estate investment trust (REIT) under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes, if it distributes at least 90% of its REIT taxable income to its stockholders. The company was founded in 2009 and is headquartered in New York, New York.
- [By Rich Duprey]
Mortgage real estate investment trust Apollo Commercial Real Estate Finance (NYSE: ARI ) announced this morning its second-quarter dividend for its 8.625% Series A cumulative redeemable perpetual preferred stock of $0.5391 per share for the period ending July 15. That’s the same rate it’s paid for the past three quarters after it was increased 21% from $0.4432 per share.
Top 10 Warren Buffett Stocks To Own For 2014: PPJ Enterprise (PPJE)
PPJ Enterprise, Inc. (PPJ), incorporated on May 02, 2000, is a healthcare finance company. The Company is engaged in automated healthcare reimbursement cycle software, online health information digital-systems software and practice information management digital-system software. The Company’s flagship product is its medical billing software system. The Company has developed through its subsidiary Automated Software Corp., a medical billing software system named AutoMed.
The Company’s principal activity is serving as a medical reimbursement consulting firm. The Company’s medical billing system is comprised of both hardware and software. The system uses Optical Character Recognition (OCR)/ Initial Margin Requirement (IMR) scanning technology to allow physicians to bill their medical insurance claims at the point of service without data entry, coding or billing personnel. The Company offers the Automated Biller on a customized basis for medical practices th roughout the United States.
- [By Peter Graham]
While small cap green or renewable energy type of stocks have been the flavor of the month for many stock promoters (and sometimes still are), small cap health care stocks like PPJ Enterprise (OTCMKTS: PPJE), Plantation Development Corp (OTCMKTS: BRMA) and MedCAREERS Group Inc (OTCMKTS: MCGI) have also started to get some notice lately – perhaps because Obamacare has been topping the news lately. However, are these small cap health care stocks a better bet for investors or for their promoters? Here is a quick reality check and a checkup:
Top 10 Warren Buffett Stocks To Own For 2014: Alimera Sciences Inc.(ALIM)
Alimera Sciences, Inc., a biopharmaceutical company, engages in the research, development, and commercialization of prescription ophthalmic pharmaceuticals. The company focuses on diseases affecting the back of the eye or retina. The company is developing ILUVIEN, an intravitreal insert in phase-3 clinical trials for the treatment of diabetic macular edema (DME), which is a disease of the retina that affects individuals with diabetes and could lead to severe vision loss and blindness. Its ILUVIEN insert designed to be inserted into the patient?s eye to release a daily dose of fluocinolone acetonide over an anticipated period of 24 to 36 months. The company also conducts phase-2 clinical trials on ILUVIEN for the treatment of the dry form of age-related macular degeneration (AMD), the wet form of AMD, and retinal vein occlusion. In addition, it conducts testing on two classes of nicotinamide adenine dinucleotide phosphate oxidase inhibitors. Further, the company develops I LUVIEN inserter, a custom insertion system for ILUVIEN. Alimera Sciences, Inc. was founded in 2003 and is headquartered in Alpharetta, Georgia.
- [By Smith On Stocks]
This note focuses on the implications of the complete response letter (CRL) received by Alimera (ALIM) for Iluvien. This product was developed by pSivida (PSDV) but was partnered with Alimera. This report deals only with the investment significance for pSivida.
- [By John Kell]
Specialty pharmaceutical firm pSivida Corp.(PSDV) said the U.S. Food and Drug Administration didn’t approve a treatment for an eye disease found in patients with diabetes. The company’s stock tumbled 47% to $2 premarket, while shares of Alimera Sciences Inc.(ALIM) were down 39% to $1.66, as the treatment is licensed and sold by Alimera in other markets.
Top 10 Warren Buffett Stocks To Own For 2014: EMS Seven Seas ASA (EMS)
EMS Seven Seas ASA, formerly known as Eitzen Maritime Services ASA, is a Norway-based company active in the shipping industry. It is operational through two divisions: Ship Management and Ship Supply, servicing clients within the military, merchant, fisheries, offshore and cruise market segments. The Ship Management (and Insurance) unit provides technical management, crewing, newbuilding and project consultancy services, ship agency services and marine insurance brokering. It has its main operations in the Baltic, Russia, India and Singapore. Ship Supply provides provisions, duty free products, stores, spares and marine products and equipment to the merchant marine, offshore, fishing fleet, military and cruise market. This segment operates in Norway, Germany, the Netherlands, Spain, the United Arab Emirates (UAE), Djibouti and Singapore. Eitzen Maritime Services ASA is active internationally through its subsidiaries. Advisors’ Opinion:
- [By victorselva]
In a macro view, revenues in the electronic equipment and instrument sub-industry will remain strong due to the rise in equipment and instrument manufacturers. Distributors, electronic manufacturing service (EMS) companies and original equipment manufacturers (OEM) are going to increase orders as the economy improves in the future. With this promising outlook, let’s take a look at Gabelli´s last trade and try to explain to investors the reasons of this appealing investment opportunity.
Top 10 Warren Buffett Stocks To Own For 2014: MarketAxess Holdings Inc (MKTX)
MarketAxess Holdings Inc. (MarketAxess), incorporated on April 11, 2000, operates an electronic trading platform that allows investment industry professionals to trade corporate bonds and other types of fixed-income instruments. The Company’s over 1000 active institutional investor clients (firms that executed at least one trade in the United States or European fixed-income securities through its electronic trading platform, during the year ended December 31, 2012) include investment advisers, mutual funds, insurance companies, public and private pension funds, bank portfolios, broker-dealers and hedge funds. The Company’s 87 broker-dealer, market-maker clients provide liquidity on the platform and include most of the broker-dealers in global fixed-income trading. Through its Corporate BondTicker service, MarketAxess provides fixed-income market data, analytics and compliance tools that help its clients make trading decisions. In addition, it provides Financial Informa tion eXchange (FIX) message management tools, connectivity solutions and ancillary technology services that facilitate the electronic communication of order information between trading counterparties. The Company’s revenues are primarily generated from the trading of the United States high-grade corporate bonds. In March 2013, it announced acquisition of Xtrakter Limited.
The majority of the Company’s revenues are derived from monthly distribution fees and commissions for trades executed on its platform that are billed to its broker-dealer clients on a monthly basis. The Company also derives revenues from technology products and services, information and user access fees, investment income and other income. During 2012, the Company’s broker-dealer clients accounted for approximately 95% of the underwriting of newly-issued United States corporate bonds and approximately 72% of the underwriting of newly issued European corporate bonds. MarketAxess’s electron ic trading platform provides access to the liquidity provide! d through the participation on its platform of 87 broker-dealer market making clients, including all of the broker-dealers in global fixed-income trading, and over 1000 active institutional investor firms. In addition to services directly related to the execution of trades, the Company offers its clients several other services, including information services, straight-through processing, and technology products and services. MarketAxess offers Application Programming Interface (API) services to its broker-dealer clients for pre-trade, trade negotiation and post-trade services.
The United States High-Grade Corporate Bonds
The United States corporate bond market consists of three categories of securities: investment-grade debt (so-called high-grade); debt rated below investment-grade (so-called high-yield), and debt convertible into equity (so-called convertible debt). The Company’s United States high-grade corporate bond business consists of the Un ited States dollar-denominated, investment-grade debt issued by corporations for distribution in the United States. Both domestic and foreign institutional investors have access to the United States high-grade corporate bond trading on its electronic trading platform. During 2012, its broker-dealer clients accounted for approximately 95% of the underwriting of newly-issued the United States corporate bonds. The Company offers its institutional investor clients access to a range of inventory of the United States high-grade corporate bonds, which is provided and updated daily by its broker-dealer clients.
The European high-grade corporate bond market consists of a range of products, issuers and currencies. MarketAxess Europe Limited, its wholly owned subsidiary, offers European secondary trading functionality in the United States dollar- and Euro-denominated European corporate bonds to its broker-dealer and institutional investor clients. Th e Company also offers its clients to trade in other European! high-gra! de corporate bonds, including bonds issued in Pounds Sterling, floating rate notes, European government bonds and bonds denominated in non-core currencies. In the Eurobond credit market, defined as including European high-grade, high yield and government bonds, 23 broker-dealers utilize the Company’s platform.
Emerging Markets Bonds
Emerging markets bond market includes the United States dollar, Euro or local currency denominated bonds issued by sovereign entities or corporations domiciled in a developing country. These issuers are located in Latin America, Asia, or Central and Eastern Europe. The agency bond market includes debt issued by a United States government-sponsored enterprise. 59 of the Company’s United States broker-dealer clients use its platform to trade emerging markets bonds. During 2011, 414 institutional investor clients utilized its electronic trading platform to trade emerging markets bonds. These institutional investor clien ts are located in the United States and Europe. MarketAxess also allows its institutional investor clients to transact Euroclear-eligible local currency denominated bonds issued by sovereign entities or corporations in countries that include Argentina, Brazil and Mexico.
Crossover and High-Yield Bonds
59 of the Company’s United States broker-dealer clients use its platform to trade crossover and high-yield bonds. Trading in crossover and high-yield bonds uses many of the same features available in its United States high-grade corporate bond offering.
41 of the Company’s United States broker-dealer clients use its platform to trade agency bonds. Trading in agency bonds uses many of the same features available in the Company’s United States high-grade corporate bond offering.
Credit Default Swaps
MarketAxess offers trading on its platform for CDS indices and single-names in both th e United States and Europe through its traditional RFQ proto! col. Nine! of the Company’s broker-dealer clients are providing streaming, executable CDS index prices. In addition, it incorporated the request-for-market protocol and the streaming markets/click-to-trade protocol into an updated single-screen user interface, giving clients their means of execution.
12 of its United States broker-dealer clients use its platform to trade asset-backed securities. Trading in asset-backed securities uses many of the same features available in the Company’s United States high-grade corporate bond offering.
17 of the Company’s United States broker-dealer clients use its platform to trade preferred securities. Trading in preferred securities uses many of the same features available in its United States high-grade corporate bond offering.
Corporate BondTicker provides TRACE data and enhances it with MarketAxess trade data and analytical tools to provide professional market participants with a set of corporate bond price information. The data include trade time and sales information, including execution prices, as well as MarketAxess-estimated, spread-to-Treasuries, for trades disseminated by the TRACE system. The data also include actual execution prices and spread-to-Treasury levels for United States high-grade corporate bond trades executed on the MarketAxess platform. Corporate BondTicker is integrated directly into the MarketAxess electronic trading platform and can be accessed, either when viewing securities inventory or when launching an inquiry. Corporate BondTicker is also available through the Internet for non-trading professional market participants, including, among others, research analysts and rating agencies, who can log in and access the information via an easy-to-use browser-based interface.
The Company provides Corporate BondTicker as an ancillary ser vice to its trading clients and also to other industry parti! cipants. ! It derives revenues from its Corporate BondTicker service by charging for seat licenses per user at its broker-dealer and institutional investor clients, through distribution agreements with other information service providers and through bulk data sales to third parties. The Company also offers a set of reports designed to review and monitor credit trading activity for institutional investor clients. Its compliance product provides a printed history of each inquiry submitted through the MarketAxess trading platform.
Through MarketAxess’s Greenline Financial Technologies, Inc. (Greenline) subsidiary, it provides integration, testing and management solutions for FIX-related products and services. The FIX protocol is a messaging standard developed for the electronic exchange of securities transaction information. It also provides technology consulting and customized development services to its clients. In addition, the Company pr ovides gateway adapters to connect order management and trading systems to fixed-income trading venues.
The Company competes with Thomson TradeWeb, Bloomberg and The New York Stock Exchange
- [By Seth Jayson]
MarketAxess Holdings (Nasdaq: MKTX ) is expected to report Q1 earnings on April 24. Here’s what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict MarketAxess Holdings’s revenues will grow 7.7% and EPS will expand 5.7%.
- [By John Udovich]
If you have found yourself trading more as the markets become more volatile or struggling to come to terms with low interest rates, small caps like Interactive Brokers Group, Inc (NASDAQ: IBKR), MarketAxess Holdings Inc (NASDAQ: MKTX), Indo Global Exchanges PteLtd (OTCMKTS: IGEX) which are in the electronic brokerage or trading platform business would be well worth taking a closer look at. Here is what you need to know about all three:
Top 10 Warren Buffett Stocks To Own For 2014: Deutsche Lufthansa AG (LHA)
Deutsche Lufthansa AG is a Germany-based aviation company with global operations and a total of more than 400 subsidiaries and associated companies. The Company is engaged in passenger transport, airfreight and airline services. The Lufthansa Group operates in five major business segments: scheduled passenger air traffic (Passenger Airline Group) consists of Deutsche Lufthansa AG, Lufthansa CityLine GmbH, Swiss International Air Lines AG, Austrian Airlines AG, Air Dolomiti S.p.A., Eurowings Luftverkehrs AG and Germanwings GmbH; scheduled airfreight services (Logistics) consists of the Lufthansa Cargo group; maintenance, repair and overhaul (MRO) consists of the Lufthansa Technik group; information technology (IT Services) consists of the Lufthansa Systems group, and catering (Catering) consists of the LSG Lufthansa Sky Chefs group. On April 20, 2012, the Company announced the divestiture of British Midland Ltd. (bmi) to International Consolidated Airlines Group SA. Advisors’ Opinion:
- [By Jonathan Morgan]
Deutsche Lufthansa AG (LHA), Europe’s largest airline by sales, advanced 3.1 percent to 15.52 euros as a gauge of travel and leisure companies posted the biggest gain of the 19 industry groups in the Stoxx Europe 600 Index. EasyJet Plc rallied after saying its fiscal third-quarter revenue climbed.
- [By Jonathan Morgan]
German stocks were little changed, as declines in utilities and banks offset gains in Deutsche Lufthansa AG (LHA) and Deutsche Boerse AG.
RWE AG (RWE), Germany’s second-largest utility, slipped 2.4 percent after RBC Capital Markets cut its recommendation on the stock. Lufthansa followed its European peers higher, recovering some of its Aug. 2 selloff. Xing AG (O1BC), the business social network, jumped the most since October as Deutsche Bank AG (DBK) upgraded its rating on the shares.
Top 10 Warren Buffett Stocks To Own For 2014: National Bank of Greece SA (NBGA)
National Bank of Greece SA (the Bank) is a Greece-based financial institution. It provides a range of financial services including retail and commercial banking, asset management, brokerage, investment banking, insurance and real estate at a global level. Its segments are: Retail Banking, which mainly offers different types of loans, deposits and investment products; Corporate and Investment Banking, which includes financial and investment advisory services, deposit accounts, loans, foreighn exchange and trade service activities; Global Markets and Asset Management, which includes all treasury activities, private banking, asset management, custody services, private equity and brokerage; Insurance; International Banking Operations; Turkish Banking Operations, as well as Other. In September 2013, state-owned Hellenic Financial Stability Fund acquired an 84.39% interest in the Company. On December 30, 2013, it sold a 66% of its subsidiary National Pangaea REIC to Invel Real Esta te II BV. Advisors’ Opinion:
- [By codyeustice1@google]
National Bank of Greece (ETE),(NBGA),(NBG) is a Greece global banking and financial service company with its headquarters in Athens, Greece. The bank offers financial products, and services, brokerage, insurance, asset management, shipping finance, leasing and factoring markets. It was founded by Swiss banker Jean-Gabriel Eynard and George Starvros in 1841 as a commerical bank. From its inception until the establishment of the Bank of Greece in 1928, it had the right to issue banknotes. The bank listed on the Athens Stock Exchange right after its founding in the 1880s.
Top 10 Warren Buffett Stocks To Own For 2014: SAP AG(SAP)
SAP AG provides business software primarily in Europe, the Middle East, Africa, the Americas, and the Asia Pacific Japan region. The company?s products includes SAP Business Suite software, which supports large organizations in their core business operations, such as supplier relationship, production, warehouse management, sales, administration, and customer relationship; SAP Business All-in-One, a business management software that assists midsize companies in managing various business functions, including financials, human resources, procurement, inventory, manufacturing, logistics, product development, sales, and marketing; SAP Business One, a business management application for small businesses; and SAP Business ByDesign, an on-demand solution for integrated business management applications. Its products also comprises SAP BusinessObjects Edge business intelligence and enterprise performance management solutions; Xcelsius, a data visualization software; Crystal Reports, which helps users design interactive reports; Sybase IQ, an optimized analytics server designed to deliver results for business intelligence, analytics, data warehousing, and reporting solutions; SAP solutions for sustainability; and SAP NetWeaver technology platform, which integrates information and business processes across various technologies and organizational structures. In addition, the company offers industry and solution-focused, business transformation, information technology transformation, custom development, and support services; and program, project management, quality assurance, and education and certification services. It sells its products through its subsidiaries and resellers. SAP AG has a strategic relationship with Cap Gemini S.A. to develop and deploy enterprise mobility solutions. The company was formerly known as SAP Aktiengesellschaft Systeme, Anwendungen, Produkte in der Datenverarbeitung. SAP AG was founded in 1972 and is headquartered in Walldorf , Germany.
- [By Rob DeFrancesco]
Rob DeFrancesco: Yeah, it did come up. It was a strong Q4 earnings season and a lot of these names, particularly the momentum names in software, did well. Workday, which provides cloud-based human resources and financials software competes with legacy vendors like Oracle (ORCL) and SAP (SAP).
- [By Tom Taulli]
John Chen: Chen came on board as the CEO of BBRY late last year. No doubt, he has an impressive resume. For example, he led the turnaround of Sybase and sold it to SAP (SAP) for $5.8 billion. And he has wasted little time trying to give BBRY stock a boost. First, he reorganized BlackBerry’s divisions with a focus on the enterprise market to help with product development and sales effectiveness. But perhaps the most important move has been to outsource hardware development to Foxconn. With the deal, BBRY can focus on software while Foxconn can leverage its scale and supply-chain efficiencies. By April, BBRY will launch two new phones that are based on Foxconn development.
Top 10 Warren Buffett Stocks To Own For 2014: SPS Commerce Inc.(SPSC)
SPS Commerce, Inc. provides on-demand supply chain management solutions worldwide. It offers integration, collaboration, connectivity, visibility, and data analytics over the Internet using a software-as-a-service model. SPS Commerce, Inc. provides its solutions through SPSCommerce.net, a hosted software suite that enables suppliers, retailers, distributors, and other customers to manage and fulfill orders. The company?s platform delivers various solutions to suppliers and retailers, including trading partner integration, trading partner enablement, trading partner intelligence, and various peripheral solutions. It also operates Retail Universe, a collaborative online Website that facilitates relationships and communications with members of the retail ecosystem. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.
- [By CRWE]
SPS Commerce (Nasdaq:SPSC), a leading provider of on-demand supply chain management solutions, and Wicresoft, a leading global IT solution service provider specializing in providing consulting, information technology and business process outsourcing, and IT infrastructure services, have partnered to provide supply chain solutions in China, Hong Kong and Japan.