Top 5 Small Cap Companies To Own In Right Now

Pharmacy chain Walgreen (NYSE: WAG  ) and the U.S. Drug Enforcement Administration and Department of Justice have reached a settlement agreement over civil charges that the company had practiced improper distribution of prescription painkillers, the company announced yesterday.

The agreement includes Walgreen’s paying $80 million and requires it to to surrender its DEA registrations at six of its more than 800 Florida pharmacies until May 2014 and at a Florida distribution center until September 2014.

The company had allegedly made violations in the record-keeping and dispensing of several controlled substances. Said violations were discovered through investigations of the company’s distribution center in Jupiter, Fla., and six additional retail pharmacies in Florida. Walgreen has agreed to pay $80 million in the settlement, and expects the impact to be approximately $0.04 to $0.06 per share during its next quarter.

Kermit Crawford, Walgreen’s president of pharmacy, health and wellness, said in a statement that the company has already made great strides in preventing abuse of prescription drugs. “We have identified specific compliance measures – many of which Walgreens has already taken – to enhance our ordering processes and inventory systems, to provide our team members with the tools, training and support they need to ensure the appropriate dispensing of controlled substances and to improve collaboration across the industry.”

Top 5 Small Cap Companies To Own In Right Now: Texas Instruments Incorporated(TXN)

Texas Instruments Incorporated engages in the design and sale of semiconductors to electronics designers and manufacturers worldwide. The company?s Analog segment offers high-performance analog products comprising standard analog semiconductors, such as amplifiers, data converters, and interface semiconductors; high-volume analog and logic products; and power management semiconductors and line-powered systems. Its Embedded Processing segment includes DSPs that perform mathematical computations to process and enhance digital data; and microcontrollers, which are designed to control a set of specific tasks for electronic equipment. The company?s Wireless segment designs, manufactures, and sells application processors and connectivity products. Its Other segment offers smaller semiconductor products, which include DLP products that are primarily used in projectors to create high-definition images; and application-specific integrated circuits. This segment also provides handhe ld graphing and scientific calculators, as well as licenses technologies to other electronic companies. The company serves the communications, computing, industrial, consumer electronics, automotive, and education sectors. Texas Instruments Incorporated sells its products through a direct sales force, distributors, and third-party sales representatives. It has collaboration agreements with PLX Technology Inc.; Neonode, Inc.; and Ubiquisys Ltd. The company was founded in 1938 and is headquartered in Dallas, Texas.

Advisors’ Opinion:

  • [By Chuck Saletta]

    Texas Instruments (NASDAQ: TXN  ) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers two-and-a-half reasons he’s holding on to Texas Instruments’ stock despite its substantial rise since he bought those shares a little more than a year ago.

  • [By Victor Selva]

    Several tech vendors like Intel (INTC), IBM (IBM), Texas Instruments (TXN) and Hewlett-Packard (HPQ) have announced job cuts for 2014. These reductions will take effect in the near future while management will continue to explore additional opportunities to improve profitability. 

  • [By Paul Ausick]

    Texas Instruments Inc. (NASDAQ: TXN) saw short interest fall by 2.1% to 22.85 million shares, or 2.1% of the float. TI reported earnings last week, pulling the shares back from a 52-week high and cooling, for the moment at least, any added interest from short sellers.

  • [By Douglas A. McIntyre]

    Big tech seems to get smaller and smaller, both in terms of sales and number of employees. International Business Machines Corp. (NYSE: IBM) said it would rebalance its workforce. Texas Instruments Inc. (NASDAQ: TXN) announced it would cut 1,100 people. These announcements come shortly after Intel Corp. (NASDAQ: INTC) said it would fire 5,000 people. While job cuts from the recession may have ended, old tech cannot afford to hold on to its workers.

Top 5 Small Cap Companies To Own In Right Now: Hot Topic Inc.(HOTT)

Hot Topic, Inc., together with its subsidiaries, operates as a mall- and Web-based specialty retailer in the United States. The company operates Hot Topic and Torrid store concepts, as well as an e-space music discovery concept, ShockHound. Its Hot Topic stores sell music/pop culture-licensed merchandise, including tee shirts, hats, posters, stickers, patches, postcards, books, novelty accessories, CDs, and DVDs; and music/pop culture-influenced merchandise comprising women?s and men?s apparel and accessories, such as woven and knit tops, skirts, pants, shorts, jackets, shoes, costume jewelry, body jewelry, sunglasses, cosmetics, leather accessories, and gift items for young men and women primarily between the ages of 12 and 22. The company?s Torrid stores sells casual and dressy jeans and pants, fashion and novelty tops, sweaters, skirts, jackets, dresses, hosiery, shoes, intimate apparel, and fashion accessories for various lifestyles for plus-size females primarily betw een the ages of 15 and 29. As of July 30, 2011, it operated 636 Hot Topic stores in 50 states, Puerto Rico, and Canada; 145 Torrid stores; and Internet stores, hottopic.com and torrid.com. The company was founded in 1988 and is headquartered in City of Industry, California.

Advisors’ Opinion:

  • [By Marshall Hargrave]

    In May True Religion (TRGL) announced a buyout offer from TowerBrook Capital for $826 million. Also in May, Rue21 decided to sell itself to Apax Partners for $2.2 billion. Before that, in March, Hot Topic (HOTT) announced that Sycamore Partners was buying out it out for $600 million.

Top 5 Small Cap Companies To Own In Right Now: Rackspace Hosting Inc(RAX)

Rackspace Hosting, Inc. operates in the hosting and cloud computing industry. It provides information technology (IT) as a service, managing Web-based IT systems for small and medium-sized businesses, as well as large enterprises worldwide. The company?s service suite includes dedicated hosting comprising customer management portal and other management tools that manage data center, network, hardware devices, and operating system software; and cloud computing that enables customers to provide and manage a pool of computing resources, as well as delivery of computing resources to business when they need them. It offers cloud servers, cloud files, and cloud sites, as well as cloud applications, such as email, collaboration, and file back-ups; and hybrid hosting that provides a combination of dedicated hosting and cloud computing services. The company also offers customer support services. It sells its service suite through direct sales teams, third-party channel partners, an d online ordering. The company was formerly known as Rackspace.com, Inc. and changed its name to Rackspace Hosting, Inc. in June 2008. Rackspace Hosting, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.

Advisors’ Opinion:

  • [By Jim Jubak]

    This is the part of the cloud market where Google competes—and where Google cuts prices. The public cloud sector is dominated by Amazon.com (AMZN) with Microsoft (MSFT), Google, IBM (IBM), and Rackspace Hosting (RAX) competing for the Number Two slot.

  • [By Jake L’Ecuyer]

    Rackspace Hosting (NYSE: RAX) was down, falling 17.02 percent to $33.40 after the company reported a drop in its fourth-quarter net income and announced the retirement of its Chief Executive Lanham Napier.

  • [By Myra P. Saefong]

    Rackspace Hosting Inc.’s stock (RAX)  sank 14% in the after-hours session. The company reported earnings of 14 cents a share for its fourth quarter, matching the market’s estimate, according to an estimate from FactSet. Revenue reached $408 million, above analysts’ forecast for $404.7 million.

  • [By Jon C. Ogg]

    Rackspace Hosting Inc. (NYSE: RAX) was supposed to have its earnings report out after the close of trading on Monday. The big news is not that Rackspace managed to beat revenue expectations – Rackspace also announced that Lanham Napier has retired from the company as Chief Executive Officer and as a member of the Board of Directors.

Top 5 Small Cap Companies To Own In Right Now: KongZhong Corporation(KONG)

KongZhong Corporation, together with its subsidiaries, provides wireless interactive entertainment, media, and community services to mobile phone users in the People’s Republic of China. It also involves in the development, distribution, and marketing of consumer wireless value-added services, including wireless application protocol, multimedia messaging services, short messaging services, interactive voice response services, and color ring back tones. In addition, it offers interactive entertainment services, such as mobile games, pictures, karaoke, electronic books, mobile phone personalization features, entertainment news, chat, and message boards; and through Kong.net offer news, community services, games, and other interactive media and entertainment services; and sells advertising space in the form of text-link, banner, and button advertisements. Further, the company develops and publishes mobile games, including downloadable mobile games and online mobile games cons isting of action, role-playing, and leisure games. As of December 31, 2009, it had a library of approximately 300 internally developed mobile games. Additionally, it develops online games; and provides consulting and technology services, as well as media and net book services. The company was formerly known as Communication Over The Air Inc. and changed its name to KongZhong Corporation in March 2004. KongZhong Corporation was founded in 2002 and is headquartered in Beijing, the People?s Republic of China

Advisors’ Opinion:

  • [By Roberto Pedone]

    One under-$10 wireless services player that looks poised for a big spike higher is KongZhong (KONG), which is a provider of WVAS and mobile games to mobile phone users and a wireless media company providing news, content, community and mobile advertising services through its wireless Internet sites in the PRC. This stock is off to a hot start in 2013, with shares up sharply by 53%.

    If you take a look at the chart for KongZhong, you’ll notice that this stock has been downtrending badly for the last two months, with shares plunging lower from its high of $14.92 to its recent low of $7.78 a share. During that downtrend, shares of KONG have been consistently making lower highs and lower lows, which is bearish technical price action. That move has now pushed shares of KONG into oversold territory, since its current relative strength index reading is 30.21. Shares of KONG are now starting to spike higher off its recent low of $7.78 a share and off its 200-day moving average of $7.95 a share. This spike could be signaling that the downside volatility for KONG is over in the short-term and the stock is ready to trend higher.

    Traders should now look for long-biased trades in KONG if it manages to break out above some near-term overhead resistance at $8.50 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 519,857 shares. If that breakout triggers soon, then KONG will set up to re-test or possibly take out its next major overhead resistance levels at $10 to its 50-day moving average at $11.33 a share.

    Traders can look to buy KONG off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $7.78 a share. One can also buy KONG off strength once it takes out $8.50 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

  • [By Seth Jayson]

    Calling all cash flows
    When you are trying to buy the market’s best stocks, it’s worth checking up on your companies’ free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That’s what we do with this series. Today, we’re checking in on Kongzhong (Nasdaq: KONG  ) , whose recent revenue and earnings are plotted below.

Top 5 Small Cap Companies To Own In Right Now: FuelCell Energy Inc.(FCEL)

FuelCell Energy, Inc., together with its subsidiaries, engages in the development, manufacturing, and sale of high temperature fuel cells for clean electric power generation primarily in South Korea, the United States, Germany, Canada, and Japan. The company offers proprietary carbonate Direct FuelCell Power Plants that electrochemically produce electricity from hydrocarbon fuels, such as natural gas and biogas. Its fuel cells operate on a range of hydrocarbon fuels, including natural gas, renewable biogas, propane, methanol, coal gas, and coal mine methane. The company also develops carbonate fuel cells, planar solid oxide fuel cell technology, and other fuel cell technologies. It provides its products to universities; manufacturers; mission critical institutions, such as correction facilities and government installations; hotels; and natural gas letdown stations, as well as to customers who use renewable biogas for fuel, including municipal water treatment facilities, br eweries, and food processors. The company was founded in 1969 and is headquartered in Danbury, Connecticut.

Advisors’ Opinion:

  • [By Richard Stavros]

    I was so scarred by their subsequent crash that when I heard a portfolio manager rhapsodizing about the recent performance of Plug Power Inc (NSDQ: PLUG), Fuelcell Energy Inc (NSDQ: FCEL) and Capstone Turbine Corp (NSDQ: CPST), I could scarcely believe it. These were names that I had not heard in years, names that many investors would like to forget. Indeed, even with the recent run-up in their share prices, the value of these firms today is just a small fraction of what it was back then.

  • [By Paul Ausick]

    The news also lifted shares of FuelCell Energy Inc. (NASDAQ: FCEL) and Ballard Power Systems Inc. (NASDAQ: BLDP) by about 28% and 18%, respectively. But none of the three stocks hit a new 52-week high. That happened two weeks before when Plug Power announced a sale of 1,700 fuel cell-forklifts to Wal-Mart Stores Inc. (NYSE: WMT).

  • [By Ben Levisohn]

    As a result, Plug Power’s shares are tumbling. They’ve dropped 19% to $6.87 at 2:20 p.m. today–and Plug Power’s plunge has dragged FuelCell Energy (FCEL) down 15% to $2.48 and  Ballard Power Systems (BLDP) down 19% to $4.38.