Succeeding as an investor takes a strong mind, but a stronger heart. That is especially true when stocks plunge—or soar.
In his letter this week to investors in his hedge funds, manager David Einhorn of Greenlight Capital pointed to “the parabolic rise of a growing number of market-leading story stocks.”
If you have explosive gains on stocks like Fannie Mae(FNMA) (up 968% over the past 12 months), Netflix(NFLX) (up 163% over the same period) or Priceline.com(PCLN) (up 74%), it isn’t just time to reassess what you are investing in. It is time to reassess what kind of investor you are.
For proof, look no further than the remarkable story of Ross Miller and Mary O’Keeffe, a married couple who took a wild ride on a supersonic stock.
Top Rising Stocks To Invest In 2014: Alliance Data Systems Corporation (ADS)
Alliance Data Systems Corporation, together with its subsidiaries, provides data-driven and transaction-based marketing, and customer loyalty solutions primarily in the United States and Canada. The company operates in three segments: LoyaltyOne, Epsilon, and Private Label Services and Credit. The LoyaltyOne segment includes AIR MILES Reward Program that enables consumers to earn AIR MILES reward miles as they shop within a range of retailers and other sponsors participating in the AIR MILES Reward Program; and offers loyalty services, including loyalty consulting, customer analytics, and creative services. The Epsilon segment provides integrated direct marketing solutions, which combine database marketing technology and analytics with a range of direct marketing services comprising email marketing campaigns. This segment’s products and services consist of marketing database services, analytical services, strategic consulting and creative services, proprietary data service s, and digital communications. The Private Label Services and Credit segment encompasses credit card processing, billing and payment processing, customer care and collections services for private label retailers, as well as private label retail credit card receivables financing, including securitization of the credit card receivables that it underwrites from its private label retail credit card programs. The company serves financial services, specialty retail, grocery and drugstore chains, petroleum retail, technology, hospitality and travel, media, and pharmaceuticals end markets. Alliance Data Systems Corporation was founded in 1996 and is headquartered in Plano, Texas.
- [By Sue Chang and Ben Eisen]
Alliance Data Systems Inc. (ADS) shares gained 9.3%. The operator of loyalty programs and private-label credit cards reported core earnings of $2.39 in the fourth quarter versus analysts’ estimate of $2.33 a share.
- [By Tom Taulli]
A key to Facebook’s monetization success has been the company’s aggressive investments in ad technologies. For example, by leveraging third-party data sources — such as from Datalogix, Acxiom (ACXM) and Alliance Data Systems (ADS) — it has been able to provide analytics on the performance of ad campaigns. On the Q4 earnings call, Facebook COO Sheryl Sandberg said the average return on News Feed ads was an incredible 8x.
- [By Dan Caplinger]
Facebook certainly took the spotlight in the decision from S&P Dow Jones Indices to include the social media giant in the S&P 500. But lost in the Facebook news was the fact that Alliance Data Systems (NYSE: ADS ) and Mohawk Industries (NYSE: MHK ) also gained admission to the prestigious index, while Abercrombie & Fitch (NYSE: ANF ) , JDS Uniphase (NASDAQ: JDSU ) , and Teradyne (NYSE: TER ) made their exit. Let’s take a closer look at the other winners and losers in the Facebook index shuffle.
Top Rising Stocks To Invest In 2014: Avnet Inc. (AVT)
Avnet, Inc., together with its subsidiaries, distributes electronic components, enterprise computer and storage products, and embedded subsystems in the Americas, Europe, the Middle East, Africa, Asia, Australia, and New Zealand. It operates in two segments, Electronics Marketing (EM) and Technology Solutions (TS). The EM segment markets and sells semiconductors; interconnect, passive, and electromechanical devices; and embedded products and embedded computing solutions, including technical design, integration, and assembly services to developers of application-specific computing solutions in the non-PC market. It also provides engineers with a host of technical design solutions in support of the sales process of complex products and technologies; engineering and technical resources to support product design, bill of materials development, design services, and technical education and training; and supply chain services focused on original equipment manufacturers (OEMs), el ectronic manufacturing services providers, and electronic component manufacturers. This segment primarily serves electronic component manufacturers in various markets, including automotive, communications, computer hardware and peripheral, industrial and manufacturing, medical equipment, military and aerospace, telecommunications, industrial, and digital editing. The TS segment markets and sells mid-to high-end servers, data storage, and software, as well as provides services required to implement such products and solutions to the value-added reseller channel. It also focuses on the worldwide OEM market for computing technology, system integrators, independent software vendors, and non-PC OEMs that require embedded systems and solutions, including engineering, product prototyping, integration, and other value-added services. The company was founded in 1955 and is headquartered in Phoenix, Arizona.
- [By Monica Wolfe]
Avnet Inc (AVT)
FPA Capital’s fourth largest holding is in the company Avnet. The fund holds on to 1,722,400 shares of the company’s stock, representing 1.29% of their shares outstanding and 9.2% of his total portfolio.
- [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 Avnet (NYSE: AVT ) , whose recent revenue and earnings are plotted below.
Top Rising Stocks To Invest In 2014: VAALCO Energy Inc (EGY)
VAALCO Energy, Inc. (VAALCO), incorporated in 1985, is an independent energy company principally engaged in the acquisition, exploration, development and production of crude oil and natural gas. VAALCO owns producing properties and conducts exploration activities as operator in Gabon, West Africa, conducts exploration activities as an operator in Angola, West Africa, and has conducted exploration activities as a non-operator in the British North Sea. The Company owns minor interests in production activities as a non-operator in the United States. During the year ended December 31, 2011, the Etame, Avouma, South Tchibala and Ebouri fields produced approximately 8.1 million barrels of oil (2.3 million barrels of oil net to the Company).
The Company’s primary source of revenue is from the Etame Production Sharing Contract related to the Etame Marin block located offshore the Republic of Gabon. VAALCO operates the Etame Marin block on behalf of a consortium of companies. As of December 31, 2010, VAALCO owned a 30.35% interest in the exploration acreage within the Etame Marin block. The Company owns a 28.1% interest in the development areas surrounding the Etame, Avouma, South Tchibala and Ebouri fields, each of which is located on the Etame Marin block. The Company produces from the Etame, Avouma, South Tchibala and Ebouri fields on the block.
The Mutamba Iroru block is ocated onshore near the coast in central Gabon. The Mutamba Iroru block contains an exploration area of approximately 270,000 acres.
The Company has 40% working interest in Offshore Angola. The four year primary term with an optional three year extension awards the Company exploration rights to 1.4 million acres offshore central Angola.
In July 2011, the Company acquired a 480 acre lease in the Granite Wash fo rmation in North Texas. In November 2011, the Company commen! ced drilling a second well on the initial Granite Wash formation lease.
In May 2011, the Company acquired a 70% working interest in approximately 5,200 acres (3,640 net acres) in Sheridan County, Montana in the Middle Bakken formation. In September 2011, it acquired a 65% working interest in approximately 22,000 gross acres covering the Middle Bakken and deeper formations in the East Poplar unit and the Northwest Poplar field in Roosevelt County, Montana.
The Company has minor interests in Brazos County, Texas producing from the Buda/Georgetown formations. The Company also owns certain minor non-operated interests in the Ship Shoal area of the Gulf of Mexico and in Pickens County, Alabama.
- [By Laura Brodbeck]
Earnings Expected From: AVEO Pharmaceuticals, Inc. (NASDAQ: AVEO), Kirkland’s, Inc (NASDAQ: KIRK), Dollar General Corporation (NYSE: DG), Stein Mart, Inc. (SMRT: NASDAQ), Mattress Firm Holding Corp. (NASDAQ: MRFM), SeaWorld Entertainment (NYSE: SEAS), Vaalco Energy Inc (NYSE: EGY) Economic Releases Expected: Chinese retail sales, French CPI, Brazilian retail sales, US retail sales, Japanese industrial production
- [By Laura Brodbeck]
Earnings Expected From: Covidien plc. (NYSE: COV), Eldorado Gold Corporation (NYSE: EGO), Vaalco Energy Inc. (NYSE: EGY) Economic Releases Expected: US Wholesale Trade, US non-farm payrolls
Posted-In: Bank Of England European Central Bank Federal ReserveNews Eurozone Previews Global Economics Federal Reserve Markets Trading Ideas Best of Benzinga
- [By Eric Volkman]
Vaalco Energy (NYSE: EGY ) hopes to put some power into its common stock by repurchasing a chunk of outstanding shares. The company’s board has authorized a repurchase program for up to $25 million worth of stock. The initiative will be in force for one year.
Top Rising Stocks To Invest In 2014: Select Comfort Corporation(SCSS)
Select Comfort Corporation develops, manufactures, markets, and distributes adjustable-firmness beds and other sleep-related accessory products in the United States, Alaska, Hawaii, Canada, and Australia. It offers its mattresses under the Sleep Number brand name. The company also provides a line of accessory bedding products, including specialty pillows, mattress pads, comforters, sheets, and leg options. Select Comfort Corporation distributes its products through retail, direct marketing, and e-commerce channels. As of January 2, 2010, it had 403 company-owned stores and 146 retail partner doors. The company was founded in 1987 and is headquartered in Minneapolis, Minnesota.
- [By Tess Stynes]
Among the companies with shares expected to actively trade in Monday’s session are Hhgregg Inc.(HGG), Select Comfort Corp.(SCSS) and Walgreen Co.(WAG)
- [By Jake L’Ecuyer]
Equities Trading DOWN
Shares of Select Comfort (NASDAQ: SCSS) were down 18.74 percent to $17.35 on weak Q4 guidance.
Sarepta Therapeutics (NASDAQ: SRPT) tumbled 11.94 percent to $18.00 after Citigroup downgraded the stock from Neutral to Sell.
- [By Ben Levisohn]
Others, however, gave back six months of gains in one week. That was the case for Select Comfort (SCSS), which plunged 29% to $18.60 this week after missing earnings forecasts and cutting guidance for the second time in 2013. Stanley Black & Decker (SWK), meanwhile, fell 15% to $77.16 after it beat earnings but lowered its guidance. It blamed weak margins in its security business, emerging markets and…wait for it…the government shutdown.
- [By Wallace Witkowski]
Shares of Select Comfort Corp. (SCSS) plunged 24% to $18.39 on heavy volume after the maker of Sleep Number beds reported disappointing third-quarter results and cut its outlook for the year.
Top Rising Stocks To Invest In 2014: USA Mobility Inc.(USMO)
USA Mobility, Inc. provides wireless communications solutions to the healthcare, government, enterprise, and emergency response sectors in the United States. The company provides one-way and two-way messaging services. One-way messaging consists of numeric and alphanumeric messaging services. The numeric messaging services enable subscribers to receive messages that are composed entirely of numbers, such as a phone number. The alphanumeric messages may include numbers and letters which enable subscribers to receive text messages. Its two-way messaging services enable subscribers to send and receive messages to and from other wireless messaging devices, including pagers, personal digital assistants and personal computers. USA Mobility also offers voice mail, personalized greeting, message storage and retrieval, and equipment loss and/or maintenance protection to its one-way and two-way messaging subscribers. In addition, the company provides mobile voice and data services t hrough third party providers, which include BlackBerry devices and global positioning system location applications. Further, it offers machine to machine telemetry solutions for various applications that include asset tracking, utility meter reading, and other remote device monitoring applications. USA Mobility serves businesses, professionals, management personnel, medical personnel, field sales personnel and service forces, members of the construction industry and construction trades, real estate brokers and developers, sales and service organizations, specialty trade organizations, manufacturing organizations, and government agencies. The company is based in Springfield, Virginia.
- [By Jake L’Ecuyer]
Among the sector stocks, 8×8 (NASDAQ: EGHT) was down more than 2.2 percent, while USA Mobility (NASDAQ: USMO) tumbled around 2.5 percent.
Tiffany & Co (NYSE: TIF) swung to a loss in the fourth quarter. Tiffany posted a quarterly loss of $103.6 million, or $0.81 per share, versus a year-ago profit of $179.6 million, or $1.42 per share. Excluding special items, it earned $1.47 per share. Its revenue climbed to $1.30 billion versus $1.24 billion. However, analysts were estimating earnings of $1.51 per share on revenue of $1.31 billion. For fiscal year 2014, Tiffany projects earnings of $4.05 to $4.15 per share, versus analysts’ estimates of $4.27 per share.
- [By Sally Jones]
USA Mobility Inc. (USMO): Reduced
Up 26% over 12 months, USA Mobility has a market cap of $307.81 million; its shares were traded at around $14.22 with a P/E ratio of 13.10. The dividend yield of USMO is 3.52%.
Top Rising Stocks To Invest In 2014: Tekmira Pharmaceuticals Corp (TKMR)
Tekmira Pharmaceuticals Corporation is a biopharmaceutical company focused on advancing ribonucleic acid (RNA) interference (RNAi) therapeutics and providing its lipid nanoparticle (LNP) delivery technology to pharmaceutical partners. On March 1, 2012, it announced that the Company had secured a license from Alnylam to develop TKMALDH2, an RNAi therapeutic that utilizes Tekmira’s LNP for the treatment of Alcohol Dependence (AD). Its lead oncology product candidate, TKM-PLK1, targets PLK1, a protein involved in tumor cell proliferation and a validated oncology target. On February 8, 2012, it announced that Phase I clinical trial for TKM-Ebola had been initiated. The Phase 1 TKM-Ebola clinical trial is a placebo-controlled, single-blind, single-ascending dose study with additional multiple-ascending dose cohorts in healthy human volunteers. In the field of RNAi therapeutics, the Company has licensed its LNP delivery technology to Alnylam Pharmaceuticals, Inc. and Merck & Co., I nc. Advisors’ Opinion:
- [By Lisa Levin]
Tekmira Pharmaceuticals (NASDAQ: TKMR) shares climbed 34.11% to $13.25. The volume of Tekmira Pharmaceuticals shares traded was 2187% higher than normal. Tekmira signed a development agreement with Monsanto (NYSE: MON) on delivery technology for agricultural applications.
- [By Markus Aarnio]
Companies working on chemically synthesized siRNAs include Merck (MRK), through its subsidiary Sirna Therapeutics, Inc., Novartis (NVS), Takeda (TKPHF.PK), Kyowa Hakko Kirin, Marina Biotech, Inc., Arrowhead and its subsidiary, Calando, Quark, Silence Therapeutics plc, Tekmira (TKMR), Sylentis and Dicerna Pharmaceuticals, Inc.
Top Rising Stocks To Invest In 2014: Raymond James Financial Inc (RJF)
Raymond James Financial, Inc. (RJF) is a financial services holding company whose subsidiaries are engaged in various financial services businesses predominantly in the United States of America and Canada. At September 30, 2011, its principal subsidiaries include Raymond James & Associates, Inc. (RJ&A), Raymond James Financial Services, Inc. (RJFS), Raymond James Financial Services Advisors, Inc. (RJFSA), Raymond James Ltd. (RJ Ltd.), Eagle Asset Management, Inc. (Eagle), and Raymond James Bank, FSB (RJ Bank). All of these subsidiaries are wholly owned by RJF. In April 1, 2011, the Company acquired Howe Barnes Hoefer & Arnett (Howe Barnes). The Company operates through eight business segments: Private Client Group, Capital Markets, Asset Management, RJ Bank, Emerging Markets, Securities Lending, Proprietary Capital and various corporate activities combined in the Other segment. In April 2012, Regions Financial Corporation sold Morgan Keegan & Company, Inc. and related affi liates to RJF.
PRIVATE CLIENT GROUP
The Company provides securities transaction and financial planning services to approximately two million client accounts through the branch office systems of RJ&A, RJFS, RJFSA, RJ Ltd. and Raymond James Investment Services Limited (RJIS), a joint venture in the United Kingdom. Its financial advisors offer a range of investments and services, including both third-party and products, and a variety of financial planning services. The Company charges sales commissions or asset-based fees for investment services it provides to its Private Client Group clients based on established schedules. Varying discounts may be given, generally based upon the client’s level of business, the trade size, service level provided, and other relevant factors. During the fiscal year ended September 30, 2011 (fiscal 2011), the portion of revenues from this segment that the Company considers recurring include sources, such as asset-based fe es, including mutual fund and annuity trailing commissions, ! and interest income and represented approximately 61% of the Private Client Group’s total revenues. Its financial advisors offer a number of professionally managed load mutual funds, as well as a selection of no-load funds. RJ&A and RJFS maintain dealer sales agreements with distributors of mutual fund shares sold through broker-dealers.
The Company’s principal subsidiary, RJ&A, is the full service brokerage and investment firm headquartered in the state of Florida and with over 220 locations throughout the United States, is a retail brokerage firms in the country. RJ&A is a self-clearing broker-dealer engaged in most aspects of securities distribution, trading, investment banking and asset management. RJ&A also offers financial planning services for individuals and provides clearing services for RJFS, RJFSA, other affiliated entities and several unaffiliated broker-dealers. RJFS is an independent contractor brokerage firms in the United States., is a member o f Financial Industry Regulatory Authority (FINRA) and Securities Investors Protection Corporation (SIPC), but is not a member of any exchanges. Financial advisors affiliated with RJFS may offer their clients all products and services offered through RJ&A, including investment advisory products and services which are offered through its affiliated registered investment advisor, RJFSA. RJ Ltd. is its Canadian broker-dealer subsidiary, which is engaged in both retail and institutional distribution and investment banking. RJ Ltd. is a member of the Toronto Stock Exchange (TSX) and the Investment Industry Regulatory Organization of Canada (IIROC). Its United States broker-dealer subsidiary is a member of FINRA and SIPC.
Capital Markets activities consist primarily of equity and fixed income products and services. Its institutional clients are serviced by institutional equity departments of RJ&A and RJ Ltd.; the RJ&A fixed income departmen t; RJ&A’s European offices; Raymond James Financial Intern! ational, ! Ltd, an institutional UK broker-dealer, and Raymond James European Securities, Inc., a joint venture, in which the Company hold a controlling interest. The Company charges commissions on equity transactions based on trade size and the amount of business conducted annually with each institution. Fixed income commissions are based on trade size and the characteristics of the specific security. Some European and United States offices also provide services to high net worth clients. RJ Ltd. has approximately 40 institutional equity sales and trading professionals servicing predominantly Canadian, United States and European institutional investors from offices in Canada and Europe.
Trading equity securities involves the purchase and sale of securities from and to its clients or other dealers. RJ&A makes markets in over 900 common stocks. The RJ Ltd. trading desks not only support client activity, but also take positions that are closely monitored within well defined limits. RJ Ltd. also provides specialist services in approximately 150 TSX listed common stocks. RJ&A trades both taxable and tax-exempt fixed income securities. The taxable and tax-exempt RJ&A fixed income traders purchase and sell corporate, municipal, government, government agency, and mortgage-backed bonds, asset-backed securities, preferred stock and certificates of deposit from and to its clients or other dealers.
Fixed income investment banking includes debt underwriting and public finance activities. The syndicate department consists of professionals who coordinate the marketing, distribution, pricing and stabilization of lead and co-managed equity underwritings. In addition to lead and co-managed offerings, this department coordinates the firm’s syndicate and selling group activities in transactions managed by other investment banking firms. Raymond James Tax Credit Funds, Inc. (RJTCF) is the general partner or managing member in a number of limited pa rtnerships and limited liability companies. These partnershi! ps and li! mited liability companies invest in real estate project entities that qualify for tax credits under Section 42 of the Internal Revenue Code.
The Company’s Asset Management segment includes the operations of Eagle, the Eagle Family of Funds (Eagle Funds), the asset management operations of RJ&A (AMS), Raymond James Trust, and other fee-based programs. The majority of the revenue for this segment is generated by the investment advisory fees related to asset management services for individual investment portfolios and mutual funds. Investment advisory fees are also earned on assets held in managed and non-managed programs. Eagle Fund Distributors, Inc. (EFD), a wholly owned subsidiary of Eagle, is a registered broker-dealer engaged in the distribution of the Eagle Funds. The Eagle Funds utilize unaffiliated sub-advisors for the Capital Appreciation Fund and International Equity Fund. The Small Cap Growth Fund, Mid Cap Growth Fund, Gr owth and Income Fund, Large Cap Core Fund, Mid Cap Stock Fund, Investment Grade Bond Fund, and Small Cap Core Value Fund are managed by Eagle.
AMS manages several investment advisory programs which maintain an approved list of investment managers, provide asset allocation model portfolios, establish custodial facilities, monitor performance of client accounts, provide clients with accounting and other administrative services, and assist investment managers with certain trading management activities. In addition, AMS offers additional managed accounts managed within fee based asset allocation platforms under its Freedom accounts and other managed programs. Freedom’s investment committee manages portfolios of mutual funds, exchange traded funds and separately managed account models on a discretionary basis. AMS also provides certain services for their non-managed fee-based programs (Passport, Ambassador and other non-managed programs). They prov ide performance reporting, research, sales, accounting, trad! ing and o! ther administrative services. Client fees are based on the individual account or relationship size and may also be dependent on the type of securities in the accounts.
Raymond James Trust, National Association, (RJT) provides personal trust services primarily to existing clients of its broker-dealer subsidiaries. Portfolio management of trust assets can be subcontracted to its asset management operations. This subsidiary had a total of approximately $2 billion in client assets at September 30, 2011, including nearly $120 million in the donor-advised charitable foundation known as the Raymond James Charitable Endowment Fund.
RJ Bank is a federally chartered savings bank, regulated by the Office of the Comptroller of the Currency (OCC), which provides corporate, residential and consumer loans, as well as Federal Deposit Insurance Corporation (FDIC) insured deposit accounts, to clients of our broker-dealer subsidiaries and to the g eneral public. RJ Bank is active in corporate loan syndications and bank participations as well as purchases residential whole loan packages to hold for investment. RJ Bank generates revenue principally through the interest income earned on loans and investments, which is offset by the interest expense it pays on client deposits and on its borrowings.
RJ Bank’s assets include C&I loans, commercial and residential real estate loans, as well as consumer loans that were purchased or originated by RJ Bank. Corporate loans represent approximately 75% of RJ Bank’s loan portfolio of which 90% are Shared National Credits (SNC) or other large syndicated loans. RJ Bank purchases and originates corporate loans secured by corporate assets, commercial and industrial (C&I) loans, commercial and residential real estate loans, as well as consumer loans, all of which are funded primarily by cash balances swept from the investment accounts of our broker-dealer subsidiaries’ clients.
Raymond! James In! ternational Holdings, Inc. (RJIH), through its subsidiaries, has interests in operations in Latin American countries including Argentina, Uruguay and Brazil. Through these entities it operates securities brokerage, investment banking, asset management and equity research businesses. In fiscal 2011, approximately 75% of this segments’ investment banking revenues arose from one client.
This segment conducts its business through the borrowing and lending of securities from and to other broker-dealers, financial institutions and other counterparties. The Company conducts these activities as an intermediary. Securities Lending will also loan customer marginable securities held in a margin account containing a debit to counterparties. The borrower of the securities puts up a cash deposit on which interest is earned. The lender in turn receives cash and pays interest. These cash deposits are adjusted daily to reflect changes in the cu rrent market value of the underlying securities. Additionally, securities are borrowed from other broker-dealers to facilitate RJ&A’s clearance and settlement obligations. The net revenues of this securities lending business are the interest spreads generated.
This segment consists of its principal capital and private equity activities, including various direct and third-party private equity and merchant banking investments; Raymond James Employee Investment Funds I and II (the EIF Funds), and a private equity fund which we sponsor-Raymond James Capital Partners, L.P. As of September 30, 2011, certain of its merchant banking investments include an investment in a manufacturer of crime investigation and forensic supplies, an event photography business, and an indirect investment in an allergy immunotherapy testing and treatment supply company.
- [By Eric Volkman]
The joint book-running managers of the issue are Raymond James Financial (NYSE: RJF ) unit Raymond James & Associates, Royal Bank of Canada’s (NYSE: RY ) RBC Capital Markets, and the Securities divisions of Credit Suisse and Deutsche Bank (NYSE: DB ) . The sale is expected to close on May 28.
Top Rising Stocks To Invest In 2014: ProShares Trust II (YCS)
ProShares Trust II (the Trust) is a statutory trust organized into separate series. The Trust offers seven Funds. The Trust offers beneficial interest in each of its 24 series. The 24 separate series include ProShares Ultra DJ-UBS Commodity, ProShares UltraShort DJ-UBS Commodity, ProShares Ultra DJ-UBS Crude Oil, ProShares UltraShort DJ-UBS Crude Oil, ProShares Ultra DJ-UBS Natural Gas, ProShares Short DJ-UBS Natural Gas, ProShares UltraShort DJ-UBS Natural Gas, ProShares Short Gold, ProShares Ultra Gold, ProShares UltraShort Gold, ProShares Ultra Silver, ProShares UltraShort Silver, ProShares Ultra Euro, ProShares UltraShort Euro, ProShares Ultra Yen ProShares UltraShort Yen, ProShares Ultra VIX Short-Term Futures ETF, ProShares VIX Short-Term Futures ETF, ProShares Short VIX Short-Term Futures ETF, ProShares UltraShort VIX Short-Term Futures ETF, ProShares Ultra VIX Mid-Term Futures ETF, ProShares VIX Mid-Term Futures ETF, ProShares Short VIX Mid-Term Futures ETF and Pro Shares UltraShort VIX Mid-Term Futures ETF.
The Funds offer investors the opportunity to obtain leveraged, inverse or inverse leveraged exposure to a particular benchmark. The Funds include funds linked to futures-based commodity indexes (the Commodity Index Funds), particular commodities (the Commodity Funds) or particular currencies (the Currency Funds). ProShare Capital Management LLC serves as the Trust’s Sponsor, commodity pool operator and commodity trading advisor. Wilmington Trust Company is the sole Trustee of the Trust.
Dow Jones-UBS Commodity Index
ProShares Ultra DJ-UBS Commodity and ProShares UltraShort DJ-UBS Commodity are designed to track a multiple or an inverse multiple of the daily performance of the Dow Jones-UBS Commodity IndexSM. The Dow Jones-UBS Commodity IndexSM (the Dow Jones-UBS) is designed to be a highly liquid and diversified benchmark for the commodity futures market. It focuses to reflect the overall c ommodity sector by measuring the performance of commodity fu! tures contracts. The Dow Jones-UBS is a rolling index, which means that the Dow Jones-UBS does not take actual physical possession of any commodities; rather, it tracks a rolling futures position. An investor with a rolling futures position is able to avoid delivering (or taking delivery of) underlying physical commodities while maintaining exposure to those commodities. The roll for each Index component occurs over a period of five Dow Jones-UBS business days in certain months according to a pre-determined schedule. The exact roll methodology differs between certain commodities. The Index will reflect the performance of its underlying commodities, including roll costs, without regard to income earned on cash positions. The Dow Jones-UBS is consisted of eight different commodity sectors, such as petroleum, natural gas, livestock, grains, industrial metals, precious metals, softs and vegetable oils. These eight sectors track futures contracts prices of 19 specific commodities , such as natural gas, crude oil, unleaded gasoline, heating oil, live cattle, lean hogs, wheat, corn, soybeans, soybean oil, aluminum, copper, zinc, nickel, gold, silver, sugar, cotton and coffee. The Dow Jones-UBS is consisted of commodities traded on the United States exchanges, with the exception of aluminum, nickel and zinc, which trade on the London Metal Exchange.
Dow Jones-UBS Natural Gas Subindex
ProShares Ultra DJ-UBS Natural Gas and ProShares UltraShort DJ-UBS Natural Gas are designed to track twice (2x) or twice the inverse (-2x) of the daily performance of the Dow Jones-UBS Natural Gas SubindexSM, respectively The Dow Jones-UBS Natural Gas SubindexSM is intended to reflect the performance of a rolling position in natural gas futures contracts traded on the NYMEX without regard to income earned on cash positions. An investment in natural gas futures contracts may often perform very differently than the price of physical natural gas.
- [By Ben Levisohn]
The euro has dropped about 0.8% against the dollar, while the CurrencyShares Euro Trust ETF (FXE) has dropped 0.7% to $136.71 and the Currency Shares Japanese Yen Trust ETF (FXY) has fallen 1%. The ProShares UltrasShort Euro ETF (EUO) has gained 1.3% to $16.77, while the ProShares UltraShort Yen (YCS) has gained 1.9% to $66.58.
- [By Matthew McCall]
An ETF that takes advantage of a weak yen is the ProShares UltraShort Yen ETF (NYSE: YCS). The ETF returns two times the daily inverse of the value of the yen. For example, if the yen declines by 0.5 percent, theoretically YCS should be up 1.0 percent and vice versa. The leveraged aspect of the ETF makes it too risky for most investors and it should only be considered a short-term trading vehicle.
- [By Charles Sizemore]
As always, use common sense when trading. You can be “right” about a short and still lose a lot of money if you get caught on the wrong side of a short squeeze. An ETF option to consider in lieu of shorting the yen directly would be the ProShares Ultrashort Yen (YCS).