Saturday, June 14, 2014

Ask Matt: Go for silver as gold crashes?

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.

Q: Is silver a good bet for 2014 with gold prices crashing?

A: Now that gold isn't shiny anymore, some gold bugs have moved to silver. But that could prove to be an even worse bet.

Investors should remember that if gold prices are volatile, silver prices are downright wild and crazy. Due to its lower relative price, silver has been considered to be a poor man's gold. And when gold prices fall, silver suffers mightily as speculators jump out.

Consider what happened last year. The price of an ounce of gold fell 28% in what was the shiny metals biggest drops since 1981. But at the same time, the price of silver suffered a brutal 31% crash.

Some metal pushers might try to make a case for silver now, since the price has been beat up so badly. Many of these investors like to talk about the fact silver has industrial uses. The fact is that industrial uses of silver account for a tiny portion of production. The prognosis for silver is not unlike the one for gold: not great. With the Federal Reserve on the path of slowing down stimulus, and allowing interest rates to creep higher, that's bad for precious metals. Silver and gold both suffered in 2014 just on the anticipation of the taper. Unless the Fed changes course, there's little reason to be optimistic for gold or silver.

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Why Finisar, InterDigital, and GNC Holdings Tumbled Today

Friday gave stock market investors some respite from losses earlier in the week, as major-market benchmarks managed to recover by around a quarter of a percent. Merger and acquisition activity helped bolster stocks in many different parts of the market, but concerns about the sustainability of the economic recovery held others back. Finisar (NASDAQ: FNSR  ) , InterDigital (NASDAQ: IDCC  ) , and GNC Holdings (NYSE: GNC  ) were among the worst performers of the day.


Source: Finisar.

Finisar plummeted 22% after the maker of fiber-optic network components reported subpar fiscal fourth-quarter results, and gave gloomy guidance for the current quarter, as well. Even though sales jumped by more than a quarter, a plunge of more than four full percentage points in gross margin weighed on overall profitability. Finisar remains upbeat about its achievements, with hopes to keep its market share rising, and to make the most of an upsurge in capital spending among telecom-company customers. The question is whether shareholders will be willing to turn what had been a growth-stock play into a value proposition now that shares have been beaten down so far.

InterDigital lost 7% after a judge ruled that Nokia (NYSE: NOK  ) and China's ZTE had not infringed on wireless-transmission technology patented by InterDigital. InterDigital CEO William Merritt issued a statement after the decision, disagreeing with the decision, but suggesting that an appeal to federal appellate court might yield a better result in the long run. InterDigital has generally been successful in getting many companies to license its technology, with an agreement last week with Samsung having led InterDigital to revise its second-quarter revenue guidance upward. Still, with the stock trading at lofty heights, InterDigital needs all the revenue it can get to justify its valuation.

Source: GNC.

GNC Holdings fell 6% in the wake of the resignation of its chief financial officer. Michael Nuzzo will take a job at a private company in the consumer-products industry, giving about five weeks' notice in order to help GNC meet its obligations to report its second-quarter financials. GNC stock has been under pressure all year, with the company's first-quarter results showing disappointingly slow growth of just 0.7% in same-store sales. Falling gross margins accompanied weather-related impacts, but increased competition from nutritional-product selling rivals has also weighed on investor sentiment. Until GNC finds a way to distinguish itself, it could be tough for its stock to get back on track.

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Friday, June 13, 2014

lululemon Stumbles Again, and Twitter Gains on Management Change

Stocks fell again today as concerns about violence in Iraq spread throughout the market. Kurdish rebels gained control of the oil-rich city of Kirkuk, and Sunni militants threatened to push into Southern Iraq. In a press conference, President Obama said the use of force remained an option to prevent a potential breakup of the country that U.S. troops exited in 2011, causing jitters among investors. Stocks slid during the course of the session with the Dow Jones Industrial Average  (DJINDICES: ^DJI  ) finishing down 110 points, or 0.7%, while the S&P 500 dropped 0.7%, and the Nasdaq fell 0.8%. Crude oil prices also jumped 2.4% on the events in Iraq, to nearly $107/barrel.

The day's economic reports were also mostly disappointing as retail sales improved just 0.3% in May, below expectations of 0.7%, and down from April's figure at 0.5%, which was revised up from 0.1%, making May's miss less meaningful. Retail sales are a closely watched economic indicator as consumer spending drives 70% of the country's GDP. Initial unemployment claims also increased slightly, from 313,000 to 317,000, essentially in line with expectations at 315,000. The figure remains low enough to indicate that the labor market is improving, but continuing unemployment claims also rose for the first time in several weeks, though just by 11,000, to 2.614 million. 

lululemon atheltica  (NASDAQ: LULU  ) shares tumbled again today, finishing down 16% after the yoga retailer cut its forecast in its quarterly report this morning. The weak guidance was just the latest bit of bad news for the once high-flying Canadian company, which has seen shares fall by more than 50% since last summer, and hit a three-year low on today's news. After a 2013 that featured a massive product recall, the surprise resignation of its CEO, and embarrassing remarks by its founder, the company said today that same-store sales fell for the second quarter in a row. They also forecast a decline in full-year adjusted EPS at $1.71-$1.76 against the analyst consensus at $1.89. The earnings report comes amid more management concerns as founder Chip Wilson said yesterday that he voted against the company's Chairman and one of its directors in board elections, and CFO John Currie said today that he would retire at the end of the year. Wilson's announcement, in particular, seems to indicate that lululemon is still well off track, following last year's problems. 

Meanwhile, Twitter  (NYSE: TWTR  ) shares were moving higher on a management change of its own. The social network finished up 3.5% as COO Ali Rowghani resigned. Rowghani will not be replaced because CEO Dick Costolo would like more direct contact with the company's engineering and product teams, as Rowghani's departure seems to have resulted from a dispute between the two executives. The announcement comes as Twitter shares have fallen due to concerns about sluggish user growth, which was one of Rowghani's principal responsibilities. With the departure of Rowghani, investors seem to believe the company will be implementing a new strategy to lure additional users. Even if, after its recent slide, Twitter still carries a sky-high valuation, Wall Street has made it clear that the company needs to grow its user base rapidly in order to justify its current stock price. 

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Thursday, June 12, 2014

Weill, Dimon, and the Cost of Big Banks

To the casual observer, it would seem like JPMorgan Chase (NYSE: JPM  ) can't catch a break. It's true that CEO Jamie Dimon has faced a barrage of scandals recently, yet somehow, both his firm and his reputation remain relatively untarnished in the echo-chamber of Wall Street. I find that curious. Here's why.

Photo: Secretary of Defense.

The origins story
Back in 1982, financial juggernaut Sandy Weill hired a whiz-kid named Jamie Dimon straight out of business school. At the time, banks were relatively simple institutions designed for lending against their deposits. The two would eventually pioneer what we recognize as the model of too-big-to-fail banks when they merged Citicorp and Travelers into a single financial behemoth. The value proposition of a multi-purpose institution was to create the Costco of financial services: a one-stop shop for all banking and investing needs.

And it worked.

Citigroup (NYSE: C  ) became the largest firm in the business, its market cap once peaking at $277 billion in late 2006. Of course, Dimon never got the chance to bear the fruits of his labor because Mr. Weill fired him soon after the merger. Jamie Dimon is no quitter, however. He went over to JP Morgan and steered the company through the 2008 economic collapse using the same wits and banking philosophy that transformed an entire industry just one decade before. However, with all credit to their ingenuity, because it's been a successful strategy at creating shareholder value, noticeably absent in Weill and Dimon's value proposition is the notion of social costs. Their calculus ignores the crucial role that banks play in the overall economy, and it's an oversight that continually haunts our financial system

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Moral hazard
Banks occupy a unique role in the larger scheme of things. The creation or destruction of credit runs from the Federal Reserve, down to the banks and other financial institutions, before finally reaching the real economy. By the "real economy," I mean companies that produce an actual good or service which people or other businesses consume.

Banks are emphatically not that. They're intermediaries designed to facilitate the movement of capital from savers to borrowers. If that sounds boring, it's because it should be. Banks aren't natural growth stocks, because people don't magically save more and more money every year and give it to banks to lend out. That doesn't make any sense. The growth comes from leverage and speculations -- and it's the pressure of shareholder expectations that force banks to diversify into higher risk/reward activities. Since Dimon and Weill made shareholder value central to their governance philosophy, the result is more risk-taking activity than is safe or necessary. To borrow a line from Jon Stewart: investors realized they could privatize their profits, while socializing their losses. That's a moral hazard.

The forgotten
When shareholders put up equity in a business, it doesn't mean they are the only stakeholders in that company. If bank deposits are federally insured, then it logically follows that taxpayers are also stakeholders in banks. The insular nature of Wall Street makes it easy to avoid that truth, though.

Those stakeholders are not happy, either. Outside of Wall Street's bubble, populist anger against JPMorgan remains widespread. This is thanks in part to alleged mortgage violations, the London Whale fiasco, and the questionable hiring of a Chinese minister's daughter (just to name a few of the company's issues!). The company's disastrous Twitter outreach attempt proved how out of touch these executives can be. 

So what?
Does any of that even matter? I mean, year to date, JPMorgan's share price is up an impressive 29% despite some of the highest litigation costs in the industry. An additional $4 billion was set aside for legal expenses this quarter, bringing the total to over $30 billion in just three years. While shareholders might think the slate is being wiped clean, it's obvious Mr. Dimon's leadership has had some costs.

Don't get me wrong. I understand why his supporters like him. By all accounts, he's a brilliant guy, he steered JPMorgan through the financial crisis, he communicates well, and he has a sense of humor. I've got nothing against him personally. Washington Mutual and Bear Stearns were purchased under his watch, though, moving their liabilities into his column. More importantly, his philosophy of banking, the one that prizes a profit over stability... it has proven unsustainable. If you're not a fan of stock market crashes, stop treating banks like growth stocks. It only feeds the problem.

The future of banking
The traditional bricks-and-mortar bank will soon go the way of the dodo bird -- into extinction, that is. This sounds crazy, but it's true. Every single one of the nation's biggest banks are dramatically reducing branch counts and overhauling the ones left behind. But despite these efforts, they're still far behind a single and comparatively tiny lender that's already leapt into the future. Since the beginning of 2012 alone, this company's shares are already up more than 250%. And they're bound to go higher. To download our free report revealing the identity of this stock, all you have to do is click here now.

Wednesday, June 11, 2014

Top 5 Restaurant Companies To Own For 2015

Top 5 Restaurant Companies To Own For 2015: Richoux Group PLC (RIC)

Richoux Group plc is a United Kingdom-based company engaged in the operation of restaurants. The Company has three segments: Richoux, Villagio Zippers and Deans Diner. Richoux restaurants operate in the areas of central London. The restaurants are open all day for breakfast, lunch, afternoon tea and dinner. The restaurants also offers patisserie. Zippers is a spacious, stylish and contemporary restaurant with a relaxed ambience. Dean's Diner offers a range of freshly prepared dishes. Villagio is a modern local Italian restaurant with a menu suitable for the whole family. The Companys subsidiaries include Newultra Limited and Richoux Limited. Advisors' Opinion:
  • [By Roberto Pedone]

    Richmont Mines (RIC) engages in the mining, exploration and development of mining properties, principally gold in Canada. This stock closed up 2.4% to $1.68 in Tuesday's trading session.

    Tuesday's Range: $1.61-$1.68

    52-Week Range: $1.31-$5.50

    Tuesday's Volume: 76,000

    Three-Month Average Volume: 101,786

    From a technical perspective, RIC bounced higher here right off its 50-day moving average of $1.59 with decent upside volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $1.31 to its recent high of $1.71. During that move, shares of RIC have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of RIC within range of triggering a near-term breakout trade. That trade will hit if RIC manages to take out some near-term overhead resistance at $1.71 to $1.80 with high volume.

    Traders should now look for long-biased trades in RIC as long as it's trending above its 50-day at $1.59 or above more near-term support levels at $1.50 to $1.44 and then once it sustains a move or close above those breakout levels with volume that hits near or above 101,786 share! s. If that breakout triggers soon, then RIC will set up to re-test or possibly take out its next major overhead resistance levels at $2.10 to $2.20. Any high-volume move above those levels will then give RIC a chance to tag its 200-day moving average at $2.48.

  • source from Top Penny Stocks For 2015:http://www.topstocksforum.com/top-5-restaurant-companies-to-own-for-2015-2.html

Tuesday, June 10, 2014

A sharp eye on company risk

chief risk officer, financial risk, CRO, regulation, fiduciary

As registered investment advisory firms grow, they are beginning to take a page out of the asset managers' handbook in creating a C-suite position to manage risk.

Many smaller firms haven't joined the trend yet, but the role of chief risk officer has become more important at RIA firms since the financial crisis — and recruiting is increasing for these types of jobs, said Jane Swan, the head of wealth management practice at executive search firm Sheffield Haworth Inc.

“I think it's the beginning of what's going to be a bigger trend,” she said. “We're definitely in a period of increased [regulatory] scrutiny.”

A CRO's job can involve evaluating a firm's operational risk, assessing new investment products, upholding the company's reputation and maintaining relations with regulators. Although risk management has always been an important function for those in the RIA business, companies are now increasing their emphasis on adding the role at an executive level, said Dan Solo, executive director of the business and professional services practice for Sheffield Haworth.

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“The regulatory community and pressure has really driven a more formalized approach to setting up a risk culture at the firm,” he said. “The CRO has become a key partner in crime as a control person within an organization.”

However, some experts in the industry say a CRO isn't needed at all firms. Bryan Baas has been the director of risk oversight and controls for TD Ameritrade Institutional for three years. One of the things his group does is track new rules put forth by the SEC and other regulatory bodies. The team then shares information with advisers about how the regulations could affect their businesses. They also educate advisers on issues such as fraud and hacking attempts.

So far, Mr. Baas said he hasn't seen many RIAs carve out a chief risk officer role. Often, a chief compliance officer will take on a similar function. However, the need to look at risk from a bird's eye view is becoming more apparent at larger, more complex firms, he said.

“Firms are now seeing the need for someone who has that different lens,” Mr. Baas said.

David Canter, an executive vice president for practice management and consulting at Fidelity Investments, also emphasized that a firm without a CRO isn't deficient.

“That role may be played or dispersed throughout other employees at the firm,” he said. “Everyone has a job to make sure that they're investin! g in a way that's consistent with client objectives. Having a CRO is another form of checks and balances.”

It can be effective for some companies to spread risk management among several people or a team, Mr. Solo said, but it is becoming the industry standard to have one person at the top to manage an RIA's risk outlook once the firm reaches a certain size. At 100 employees, a firm should take a serious look at putting a formal infrastructure of risk management in place, he said.

“There are certainly some firms out there that have a head of risk, but it's really more of an operational type of person,” he said. “That's clearly a step behind the industry and not the progressive way in which the industry is looking and what regulators are expecting and clients are expecting.”

Salient Partners, which manages about $19 billion in assets, brought on a new chief risk officer this fall. The CRO position has been in place at the company for about two years. Salient has more than doubled in size in the past five years and the company wanted an executive in place to look at the risk of every individual investment, as well as the company's risk from a top-down standpoint, said Lee Partridge, Salient's chief investment officer.

“Given the complexity of operations that we have, we want to make sure we have someone looking at our exposure to external managers and market risks from an all-inclusive vantage point,” he said.

For firms such as Salient that run direct strategies or have a lot of hedge fund exposure, hiring a CRO is becoming a best practice, he said. For more traditional registered investment advisers who are running 60/40 stock and bond portfolios and focusing on a relationship-driven business, the position may not be as necessary.

“I think it's probably a bull market for risk management and control functions,” he said. “You don't really make money off of those functions, but you avoid losing money and losing clients. I think for now,! we're pr! etty invested in that function.”

There is no one optimal skill set for a CRO, but the job requires a person who is familiar with the regulatory envi

Top 5 Logistics Companies To Invest In 2015

Top 5 Logistics Companies To Invest In 2015: IDEXX Laboratories Inc (IDXX)

IDEXX Laboratories, Inc., incorporated in 1983, develops, manufactures and distributes products and provides services primarily for the companion animal veterinary, livestock and poultry, water testing and dairy markets. The Company operates through three segments: diagnostic and information technology-based products and services for the veterinary market, which it refers to as the Companion Animal Group (CAG), water quality products (Water) and products for livestock and poultry health, which it refer to as Livestock and Poultry Diagnostics (LPD). It also operates two smaller segments that consist of products for milk quality and safety (Dairy) and products for the human point-of-care medical diagnostics market (OPTI Medical). In November 2011, the Company acquired the research and diagnostic laboratory (RADIL) business of the College of Veterinary Medicine from the University of Missouri. In August 2013, IDEXX Laboratories, Inc. announced that it has acquired Madasa do B rasil Ltda.

The Company sells a range of portable electrolytes and blood gas analyzers for the human point-of-care medical diagnostics market. Its primary products and services are point-of-care veterinary diagnostic products, consisting of instruments and consumables and rapid assays; veterinary reference laboratory diagnostic and consulting services used by veterinarians; diagnostic and health-monitoring products for livestock and poultry; products that test water for certain microbiological contaminants; practice management systems and services and digital radiography systems used by veterinarians; products that test milk for antibiotic residues and other contaminants, and point-of-care electrolytes and blood gas analyzers used in the human point-of-care medical diagnostics market.

Companion Animal Group

The Compan! y markets a range of in-clinic laboratory analyzers for use in providing reference laboratory quality diagnostic result s in companion animal veterinary practices, which it refers ! to as the IDEXX VetLab suite of analyzers. The Company sells two chemistry analyzers, the Catalyst Dx Chemistry Analyzer and the VetTest Chemistry Analyzer, that are used by veterinarians to measure levels of certain enzymes and other substances in blood or urine for monitoring health status and assistance in diagnosing physiologic conditions. Both instruments use consumables manufactured for IDEXX by Ortho-Clinical Diagnostics, Inc. (Ortho), a subsidiary of Johnson & Johnson, based on Ortho's dry slide technology (Catalyst Dx slides, VetTest slides or slides). In addition, the Catalyst Dx analyzer also uses dry slide electrolyte consumables manufactured by IDEXX at OPTI Medical Systems, one of its wholly owned subsidiaries. Blood tests commonly run on these analyzers include glucose, alkaline phosphatase, alanine aminotransferase (ALT), albumin, creatinine, blood urea nitrogen (BUN), and total protein. Tests are sold individually and in prepackaged panels. Both analyzers also run a urine test called urine protein:creatinine ratio, which assists in the detection of early renal disease.

The Catalyst Dx analyzer is the Company's chemistry analyzer. The Catalyst Dx analyzer allows a veterinarian to run multiple patient samples simultaneously; to run different sample types, including whole blood, plasma, serum and urine; to perform 28 different chemistry and electrolyte tests; and to automatically calculate other parameters and ratios important to blood chemistry analysis. Its VetLyte Electrolyte Analyzer measures three electrolytes-sodium, potassium and chloride-to aid in evaluating acid-base and electrolyte balances and assessing plasma hydration. Its VetStat Electrolyte and Blood Gas Analyzer measures electrolytes, blood gases, glucose and ionized calcium, and calculates other parameters, such as base exc! ess and a! nion gap.. These measurements aid veterinarians in diagnosing various disease states, evaluating fluid therapy choices and measuring respiratory function. The VetStat analyzer ru! ns single! -use disposable cassettes that contain various configurations of analytes. The VetStat analyzer and its cassettes are manufactured by OPTI Medical Systems.

The Company sells three hematology analyzers that assess the cellular components of blood, including red blood cells, white blood cells and platelets (also called a complete blood count (CBC)). These analyzers include the ProCyte Dx Hematology Analyzer, which uses laser-flow cytometry, optical fluorescence and laminar-flow impedance in its analysis; the LaserCyte Hematology Analyzer, which uses laser-flow cytometry technology in its analysis, and the IDEXX VetAutoread Hematology Analyzer. It also sells the Coag Dx Analyzer, which permits the detection and diagnosis of blood clotting disorders. The ProCyte Dx analyzer provides validated results for five species (canine, feline, equine, bovine and ferret) for up to 24 different blood parameters, providing a more complete picture of each patient's health.

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The SNAPshot Dx analyzer provides quantitative measurements of total thyroxine (T4), cortisol and bile acids to assist in the evaluation of thyroid, adrenal and liver function. The SNAPshot Dx analyzer also reads, interprets and records the results of many IDEXX rapid assay SNAP tests, including its canine SNAP 4Dx test, feline SNAP FIV/FeLV Combo test, canine SNAP cPL test, feline SNAP fPL test, SNAP Feline Triple test and canine SNAP Heartworm RT test. The IDEXX VetLab UA Analyzer provides chemical urinalysis and is validated specifically for veterinary use. The IDEXX VetLab Station (IVLS) connects and integrates the diagnostic information from all the IDEXX VetLab equipment and thus provides reference laboratory information management system capability. It sells the IVLS as an integral component of the Catalyst Dx, LaserCyte and! ProCyte D! x analyzers and also as a standalone hardware platform.

The IVLS includes a user interface to input patient infor mation, connect with a practice management system and send i! nformatio! n to run the individual analyzers. IVLS also generates one integrated patient report incorporating all of the lab work generated by the IDEXX VetLab suite; stores, retrieves and analyzes historical patient diagnostics data, including SNAP test results; and sends and receives information from practice management systems, including the IDEXX Cornerstone system, as well as a variety of third-party systems. It sells a range of single-use, handheld test kits under the SNAP name. In addition to its single-use tests, it sells a range of microwell-based test kits under the PetChek name for canine heartworm, FIV and FeLV.

The Company offers commercial reference laboratory diagnostic and consulting services to veterinarians in the United States, Canada, Europe, Australia, Japan, South Africa, China and South Korea and to bioresearch customers in the United States and Europe. The Company provides specialized veterinary consultation, telemedicine and advisory services, inc luding radiology, cardiology, internal medicine and ultrasound consulting. It develops, markets and sells practice management systems, including hardware and software, and services that run certain functions of veterinary clinics, including managing patient electronic health records, scheduling (including boarding and grooming), reminders, billing and inventory management.

The Company markets and sells two digital radiography systems for use in the small animal veterinary hospital: the IDEXX-DR 1417 and the IDEXX I-Vision CR. Its digital radiography systems use IDEXX-PACS and IDEXX EquiView PACS picture archiving and communication system (PACS) software for the viewing, manipulation, management, storage and retrieval of the digital images generated by the digital capture plate. In September 2011, the Company launched I! DEXX I-Vi! sion Mobile, an application that allows veterinarians with the IDEXX-DR 1417 and IDEXX I-Vision CR systems, as well as its digital radiog raphy systems, to request, view and send images using an iPa! d or an A! ndroid mobile tablet. This application integrates with its IDEXX-PACS software.

Water

The Company offers a range of products used in the detection and quantification of various microbiological parameters in water. Its principal products are the Colilert, Colilert-18 and Colisure tests, which simultaneously detect the presence of total coliforms and E. coli in water. These organisms are used as indicators of microbial contamination in water. These products utilize indicator-nutrients that produce a change in color or fluorescence when metabolized by target microbes in the sample. Its water tests are used by government laboratories, water utilities and private certified laboratories to test drinking water. The tests also are used in evaluating water used in production processes (for example, in beverage and pharmaceutical applications) and in evaluating bottled water, recreational water, waste water and water from private wells.

Livestock and Poultry Diagnostics

The Company sells diagnostic tests and related instrumentation that are used to detect a range of diseases and to monitor health status in livestock and poultry. Its livestock and poultry diagnostic products are purchased by government and private laboratories that provide testing

source from Top Stocks For 2015:http://www.topstocksblog.com/top-5-logistics-companies-to-invest-in-2015.html

Monday, June 9, 2014

Top 5 Building Product Companies To Invest In 2015

Top 5 Building Product Companies To Invest In 2015: USA Compression Partners LP (USAC)

USA Compression Partners, LP, incorporated on June 07, 2011, through its wholly owned subsidiary USA Compression Partners, LLC (Operating Subsidiary) and Operating Subsidiary's wholly owned subsidiary USAC Leasing LLC, primarily provides natural gas compression services under term contracts with customers in the oil and gas industry, using natural gas compressor packages that it designs, engineers, operates and maintains. As of September 30, 2013, the Company had approximately 1,162,353 of fleet horsepower.

The Company provides compression services for a monthly service fee. As part of its services, the Company engineers, designs, operates service and repair its fleet of compression units and maintain related support inventory and equipment. The fleet of compression units that it owns and uses to provide compression services consists of engineered compression units that utilize standardized components, principally engines manufactured by Caterpillar, Inc. an d compressor frames and cylinders manufactured by Ariel Corporation.

Advisors' Opinion:
  • [By Jake L'Ecuyer]

    USA Compression Partners LP (NYSE: USAC) shares tumbled 6.80 percent to $24.95 after the company priced 6.6 million units at $25.59 per unit.

    Take-Two Interactive Software (NASDAQ: TTWO) was down, falling 3.32 percent to $19.95 after the company issued a weak outlook. For the first quarter, the company expected an adjusted loss of $0.35 to $0.25 per share on revenue of $120 million to $125 million. However, analysts expected a loss of $0.12 per share on revenue of $209.6 million.

  • [By Traders Reserve]

    For USA Compression Partners (USAC), it is all in the name – the company provides natural gas compression services to the extraction industry.

    This is a volume-! dependent business and volume is booming. USA Compression Partners' revenue was up 20% in 2012 and will be up that much or more when final numbers from 2014 come in. Third=quarter results were terrific: revenue was up almost 24% year over year and adjusted cash flow, the basis of the dividend, was up more than 29% year over year. The yield is currently 6.7% and will probably go higher. Ignore the P/E. This is a growth and dividend story. Take a look.

  • [By Robert Rapier] There were a half a dozen initial public offerings (IPOs) by master limited partnerships in the first half of the year, and all but one are now in the green while one has nearly doubled in value.

    The first MLP IPO of 2013 debuted on Jan. 15. USA Compression Partners (NYSE: USAC), which I mentioned in last week’s issue, provides compression services for the oil and gas industry. Units have advanced 36 percent since the IPO, and at the current price yield 7.3 percent.

    The day after the USA Compression Partners IPO, CVR Refining (NYSE: CVRR) made its debut.  CVRR was spun off from CVR Energy (NYSE: CVI), and both companies remain majority-owned by Carl Icahn. CVR Refining’s primary assets are two refineries located in Kansas and Oklahoma with a combined processing capacity of approximately 185,000 barrels per day (bpd). These refineries are strategically located near the major Cushing, Oklahoma shipment and storage hub, with easy access to discount ed feedstock from the nearby Permian basin, as well as the Bakken shale and Canadian oil sands.

    But refiners have struggled with diminished margins in 2013 because of a much lower Brent-WTI differential. After the recently concluded second quarter, CVRR declared a distribution of $1.35 per unit, bringing its per-unit distributions for the first half of the year to $2.93. At the same time, CVR Refining lowered its annual distribution target to a range of $4.10 to $4.80 per unit. This was lower than the outlook issued in March, when it f! oresaw an! nual distributions of $5.50 to $6.50. CVRR units slid on the news, and are presently trading slightly below the $25 IPO price. The lower end of the revised forecast implies distributions of $1.17 per unit in the second half of the year, for a forward annualized yield of 10 percent based on the recent $23.50 unit price.

    SunCoke Energy Partners (NYSE: SXCP) was the third IPO to debut during a very busy third week of January . SXCP is the first M
  • source from Top Stocks For 2015:http://www.topstocksblog.com/top-5-building-product-companies-to-invest-in-2015.html

Sunday, June 8, 2014

Time to Let Go Of Organovo Holdings (ONVO)

I'll warn you now that if you a fan of or shareholder in Organovo Holdings Inc. (NYSEMKT:ONVO), you're not going to like what you're about to hear. Sorry, but I have to call 'em like I see 'em. And what I see with ONVO is an overbought stock ripe for a big tumble.

First and foremost, if the ticker rings a bell, it may be because yours truly suggested ONVO was overbought and ready to pull back a couple of days ago. So much for my timing. Today, however, a couple of bearish clues have been tacked on, and I don't think Organovo Holdings is going to escape it unscathed.

The biggest clue is just the depth/veracity of today's rollover. The momentum leading up to today has been super-strong, but may have reached 'overheated' levels with the bullish opening gap left behind with today's move. Sure enough, the would-be profit-takers immediately decided enough is enough, and have carried Organovo Holdings shares to their first daily loss in six days.

The other accompanying clue is the amount of volume we've seen behind the pullback. It's a lot already, and the day isn't even over yet. In the shadow of such a big runup like the one we've seen from ONVO this month, when we see such a flood of selling interest after the exponential increase of buying volume driving the big rally, the reversal tends to be a big one, lasting for days, as all those buyers become more and more motivated to shed their Organovo Holdings Inc. In other words, the higher they fly, the farther they fall. It's all fairly apparent on the daily chart below.

There's another, bigger-picture technical reason ONVO is itching for a pullback, though you have to zoom out to a weekly chart to see it. It's the fact that Organovo Holdings shares have broken above not one but two key ceilings. Normally a breakout above technical resistance is a good thing. When you're talking about a small cap stock with a low float - mostly followed by speculators rather than investors - a rally is more prone to a reversal than follow-through. And, blasting past key lines is just the kind of situation where the majority of traders get lulled in... right before the minority sticks it to 'em. The weekly chart of ONVO below tells that tale.

If you're angry or upset about this bearish call on Organovo Holdings Inc., just bear in mind this is only a short-term, technical call that has nothing to do with the company's fundamentals or potential. If that's why you're interested in ONVO, the dip I'm talking about is a buying opportunity.

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