Saturday, March 31, 2012

Best Wall St. Stocks Today: MSFT, which makes the Firefox browser that competes with Microsoft’s Internet Explorer, will open a China office in the hopes of fighting Microsoft (MSFT) for share in the world’s second largest internet market.

The open source initiative might as well save its money. Mozilla’s share of the market at 13% is about the same as it was in mid-2005. There is even an argument to be made that as the new Microsoft Vista OS comes into the market, Internet Explorer could get a bump.

Open source? Not likely.

Douglas A. McIntyre can be reached at He does not own securities in companies that he writes about.

Jobs Employers Can’t Fill

Although the employment picture is improving,�the job market can hardly be described as robust, and many Americans still feel they can�t find work. Despite the common perception about a lack of work,�however, there are jobs that employers can�t seem to fill.

The reasons are many. Applicants may lack training, demand for specific skill sets may outpace supply, and the jobs may not pay enough to constitute a step up from unemployment benefits. Whatever the reason, jobs in many major sectors of the economy, including retail, manufacturing and business services, are�going unfilled.

Using data from the Bureau of Labor Statistics and the ManPowerGroup employment agency, as well as comments from employers and other placement firms, has compiled a list of jobs that are in demand. Read ahead to see them.

TASER International, Inc Succeeded New Record Year Price - NASDAQ:TASR

TASER International, Inc (NASDAQ:TASR) achieved its new 52 week high price of $5.89 where it was opened at $5.78 UP 0.09 points or +1.56% by closing at $5.85. TASR transacted shares during the day were over 491,872 shares however it has an average volume of 450,919 shares.

TASR has a market capitalization $325.14 million and an enterprise value at $294.39 million. Trailing twelve months price to sales ratio of the stock was 3.50 while price to book ratio in most recent quarter was 3.48. In profitability ratios, net profit margin in past twelve months appeared at -1.46% whereas operating profit margin for the same period at 2.39%.

The company made a return on asset of 1.08% in past twelve months and return on equity of -1.26% for similar period. In the period of trailing 12 months it generated revenue amounted to $91.58 million gaining $1.50 revenue per share. Its year over year, quarterly growth of revenue was 15.60%.

According to preceding quarter balance sheet results, the company had $30.75 million cash in hand making cash per share at 0.55. The total debt was $0.00 billion. Moreover its current ratio according to same quarter results was 4.29 and book value per share was 1.66.

Looking at the trading information, the stock price history displayed that its S&P500 52 Week Change illustrated 1.49% where the stock current price exhibited up beat from its 50 day moving average price $4.97 and remained above from its 200 Day Moving Average price $4.48.

TASR holds 55.58 million outstanding shares with 53.47 million floating shares where insider possessed 3.53% and institutions kept 46.30%.

Is CVS Caremark a Cash King?

As an investor, it pays to follow the cash. If you figure out how a company moves its money, you might eventually find some of that cash flowing into your pockets.

In this series, we'll highlight four companies in an industry, and compare their "cash king margins" over time, trying to determine which has the greatest likelihood of putting cash back in your pocket. After all, a company can pay dividends and buy back stock only after it's actually received cash -- not just when it books those accounting figments known as "profits."

Today, let's look at CVS Caremark (NYSE: CVS  ) and three of its peers.

The cash king margin
Looking at a company's cash flow statement can help you determine whether its free cash flow actually backs up its reported profit. Companies that can create 10% or more free cash flow from their revenue can be powerful compounding machines for your portfolio. A sustained high cash king margin can be a good predictor of long-term stock returns.

To find the cash king margin, divide the free cash flow from the cash flow statement by sales:

Cash king margin = Free cash flow / sales

Let's take McDonald's (NYSE: MCD  ) as an example. In the four quarters ending in June, the restaurateur generated $6.87 billion in operating cash flow. It invested about $2.44 billion in property, plant, and equipment. To calculate free cash flow, subtract McDonald's investment ($2.44 billion) from its operating cash flow ($6.87 billion). That leaves us with $4.43 billion in free cash flow, which the company can save for future expenditures or distribute to shareholders.

Taking McDonald's sales of $25.5 billion over the same period, we can figure that the company has a cash king margin of about 17% -- a nice high number. In other words, for every dollar of sales, McDonald's produces $0.17 in free cash.

I! deally, we'd like to see the cash king margin top 10%. The best blue chips can notch numbers greater than 20%, making them true cash dynamos. But some businesses, including many types of retailing, just can't sustain such margins.

We're also looking for companies that can consistently increase their margins over time, which indicates that their competitive position is improving. Erratic swings in margins could signal a deteriorating business, or perhaps some financial skullduggery; you'll have to dig deeper to discover the reason.

Four companies
Here are the cash king margins for four industry peers over a few periods.


Cash King Margin (TTM)

1 Year Ago

3 Years Ago

5 Years Ago

CVS Caremark 3.7% 2.9% 2% (0.1%)
Walgreen (NYSE: WAG  ) 2.6% 4% 1% 2.2%
Rite Aid (NYSE: RAD  ) (0.1%) 0.8% (1%) (0.3%)
Wal-Mart 2.6% 3.2% 2.3% 1.2%

Source: S&P Capital IQ. TTM = trailing 12 months.

None of these companies meets our 10% threshold for attractiveness. However, CVS Caremark shows the kind of steady growth in its cash king margins that we like to see, and it has the! highest margins of the listed companies. Walgreen (NYSE: WAG  ) and Wal-Mart (NYSE: WMT  ) tie for the second-highest current cash king margins, at 2.6%. Both have seen fluctuations in their margins over the past five years, but while Walgreen has only slightly increased its margins, Wal-Mart has more than doubled its margins. Rite Aid (NYSE: RAD  ) has fairly consistently produced margins in the negative numbers, with the exception of last year.

CVS has offered some decent growth over the past few years and, unlike Rite Aid, has kept its debt levels reasonable. One recent growth opportunity occurred after Medco Health (NYSE: MHS  ) was investigated for possible improprieties, at which point CVS took control of CalPERS public employee pharmacy benefits management business. CVS also purchased Universal American's Medicare Part D business, which has helped it grow its health-care benefit division. However, CVS faces the future challenge of continuing to win contracts in the face of a pending merger between Medco and Express scripts, which could undermine CVS's market share.

The cash king margin can help you find highly profitable businesses, but it should only be the start of your search. The ratio does have its limits, especially for fast-growing small businesses. Many such companies reinvest all of their cash flow into growing the business, leaving them little or no free cash -- but that doesn't necessarily make them poor investments. Conversely, the formula works better for slower-growing blue chips. You'll need to look closer to determine exactly how a company is using its cash.

Still, if you can cut through the earnings headlines to follow the cash instead, you might be on the path toward seriously great investments.!

W ant to read more about CVS Caremark? Add it to My Watchlist, which will find all of our Foolish analysis on this stock.

  • Add Wal-Mart�Stores to My Watchlist.
  • Add Walgreen to My Watchlist.
  • Add Universal�American to My Watchlist.
  • Add Rite�Aid to My Watchlist.
  • Add Medco�Health�Solutions to My Watchlist.
  • Add McDonald's to My Watchlist.
  • Add Express�scripts to My Watchlist.
  • Add CVS�Caremark to My Watchlist.

Great Penny Stocks To Own For 2013

Stocks are making small gains in midday trading with the Dow up 18 points, the Nasdaq up a half point, and the S&P up a half point. We probably won’t see any big gains today as oil hits $108 a barrel and investors are going to be trading cautiously as first quarter earnings start coming in next week. Let’s take a look at what penny stocks have seen big gains so far today.

Great Penny Stocks To Own For 2013:American Software Inc. (AMSWA)

 American Software, Inc. and its subsidiaries develop, market, and support a portfolio of software and services that deliver enterprise management and collaborative supply chain solutions worldwide. The company operates in three segments: Supply Chain Management, Enterprise Resource Planning, and Information Technology Consulting. The Supply Chain Management segment provides collaborative supply chain solutions, which include supply chain planning, inventory optimization, manufacturing, and transportation and logistics solutions to streamline the market planning, management, production, and distribution of products for manufacturers, suppliers, distributors, and retailers. It also markets and sells Demand Solutions product line to small and medium sized enterprises through its value-added reseller distribution network; and offers Logility Voyager Solutions suite to customers with distribution-intensive supply chains through direct and indirect sales channels. The Enterprise Resource Planning segment offers purchasing and materials management, customer order processing, financial, e-commerce, flow manufacturing, and traditional manufacturing solutions, as well as provides industry-specific business software to retailers, importers, and manufacturers in the apparel, footwear, sewn products, and furniture industries. The Information Technology Consulting segment provides information technology staffing and consulting services, as well as support for software products, such as software enhancements, documentation, updates, customer education, consulting, systems integration, and maintenance services. The company serves retail, apparel, consumer packaged goods, chemicals, pharmaceuticals, industrial products, and other manufacturing industries through its direct and indirect sales channels. American Software, Inc. was founded in 1970 and is headquartered in Atlanta, Georgia.

Great Penny Stocks To Own For 2013:Ocean Bio-Chem Inc. (OBCI)

 Ocean Bio-Chem, Inc. engages in the manufacture, marketing, and distribution of various appearance and maintenance products for boats, recreational vehicles, automobiles, and home care markets under the Star brite brand name, as well as private label formulations in the United States and Canada. The company?s marine product line consists of polishes, cleaners, protectants, and waxes of various formulations. This line also includes motor oils, boat washes, vinyl cleaners, protectants, teak cleaners, teak oils, bilge cleaners, hull cleaners, silicone sealants, polyurethane sealants, polysulfide sealants, gasket materials, lubricants, antifouling additives, and anti-freeze coolants, as well as brushes, poles and tie-downs, and other related marine accessories. Its automotive product line comprises hydraulic, gear, and motor oils; anti-freeze and windshield washes; and automotive polishes, cleaners, and associated appearance items. Ocean Bio-Chem also offers cleaners, polishes, detergents, fabric cleaners and protectors, silicone sealants, water proofers, gasket materials, degreasers, vinyl cleaners, protectors, toilet treatment fluids, and anti-freeze coolants to the recreational vehicle/power sports markets. In addition, it blends and packages various chemical formulations, as well as manufactures PVC and HDPE blow molded bottles. Further, the company offers StarTron enzyme fuel treatment for diesel and gas engines, as well as for the recreational vehicles, including snow mobiles, all terrain vehicles, and motorcycles. It sells its products to retail outlets through retailers and distributors. The company was formerly known as Star brite Corporation and changed its name to Ocean Bio-Chem, Inc. in 1984. Ocean Bio-Chem, Inc. was founded in 1973 and is headquartered in Fort Lauderdale, Florida.

Great Penny Stocks To Own For 2013:Mitsubishi UFJ Financial Group Inc (MTU)

 Mitsubishi UFJ Financial Group, Inc., together with its subsidiaries, provides various financial services to individual and corporate customers in Japan and internationally. Its Integrated Retail Banking Business Group segment comprises commercial banking, trust banking, and securities businesses. This segment offers a range of bank deposit products comprising a non-interest-bearing deposit account that is redeemable on demand; asset management and asset administration services, including savings instruments, such as current accounts, ordinary deposits, time deposits, deposits at notice, and other deposit facilities; trust products consisting of loan trusts and money trusts; and other investment products, such as investment trusts, performance-based money trusts, and foreign currency deposits. It also provides insurance products consisting of investment-type individual annuities, foreign currency-denominated insurance annuities, and yen-denominated fixed-amount annuity insurance; financial products intermediation services; and housing loans, card loans, and credit cards. The company?s Integrated Corporate Banking Business Group segment provides commercial banking, corporate and investment banking, transaction banking, trust banking, and securities services for large corporations, financial institutions, and sovereign and multinational organizations. Its Integrated Trust Assets Business Group segment offers asset management and administration services for products, such as pension trusts and security trusts. This segment provides a range of services to corporate and pension funds, including pension fund management and administration, advice on pension schemes, and payment of benefits to scheme members. The company?s Global Markets segment conducts asset liability management and liquidity management, and provides money markets, foreign exchange operations, and securities investment services. The company was founded in 1880 and is headquartered in Tokyo, Japan.

Great Penny Stocks To Own For 2013:Kid Brands Inc. (KID)

 Kid Brands, Inc. designs, imports, markets, and distributes infant and juvenile consumer products. It offers infant bedding and related nursery accessories and d�cor, such as blankets, rugs, mobiles, nightlights, hampers, lamps, and wall art under Kids Line and CoCaLo brands; cribs, mattresses, and other nursery furniture under Babi Italia, Europa Baby, Bonavita, Graco, and Serta brands; and developmental toys, as well as feeding, bath, and baby care items for infants primarily under the Sassy brand. The company sells its products primarily to retailers. It sells its products directly, as well as through a distribution network in the United States, the United Kingdom, and Australia; and through independent manufacturers? representatives and distributors internationally. The company was formerly known as Russ Berrie and Company, Inc. and changed its name to Kid Brands, Inc. in September 2009. Kid Brands, Inc. was founded in 1963 and is based in East Rutherford, New Jersey.

Great Penny Stocks To Own For 2013:Hickory Tech Corporation (HTCO)

 Hickory Tech Corporation provides integrated communications services to business and residential customers in the Midwest. The company operates in two segments, Business Sector and Telecom Sector. The Business Sector segment offers integrated data services, such as fiber, data and Internet, voice and voice over Internet protocol, managed and hosted, data center, equipment, and total care support services. This segment also distributes telecommunications and data processing equipment, as well as provides network and equipment monitoring, maintenance, and equipment consulting services; and offers fiber-based transport for regional and national telecommunications carriers, wireless carriers, and other providers. It serves businesses primarily in the upper Midwest. The Telecom Sector segment offers network access services; and broadband services, such as residential and business DSL access, high-speed Internet, digital TV, and business Ethernet services. It also provides local telephone, long distance, and calling features services; and directory assistance, operator service, and long distance private lines. In addition, this segment offers directory publishing, customer premise equipment sales, bill processing, and add/move/change services. It owns and operates approximately 900 mile fiber optic network and facilities in Minnesota. Hickory Tech Corporation was founded in 1898 and is headquartered in Mankato, Minnesota.

Great Penny Stocks To Own For 2013:Newpark Resources Inc. (NR)

 Newpark Resources, Inc. and its subsidiaries provide fluids management, waste disposal, and well site preparation products and services primarily to the oil and gas exploration and production industry. The company operates in three segments: Fluids Systems and Engineering, Mats and Integrated Services, and Environmental Services. The Fluids Systems and Engineering segment offers drilling fluids products and technical services to drilling projects involving subsurface conditions, such as horizontal, directional, geologically deep, or deep water drilling. This segment also provides completion fluids and equipment rental services. The Mats and Integrated Services segment offers mat rentals, location construction, and related well site services to exploration and production customers in the onshore U.S. Gulf Coast, western Colorado, and northeast U.S. regions; and mat rentals to the utility industry in the United Kingdom. It also installs access roads and temporary work sites for pipeline, electrical utility, and highway construction projects. This segment manufactures and sells DuraBase composite mat systems for domestic and international markets, as well as for use in its domestic rental operations. The Environmental Services segment processes and disposes waste generated by oil and gas customers, and provides onshore drilling waste management and reclamation services. The company provides its products and services primarily in the United States Gulf Coast, west Texas, east Texas, Oklahoma, North Louisiana, Rocky Mountains, and northeast region of the United States, as well as Canada, Brazil, the United Kingdom, Mexico, and North Africa. Newpark Resources, Inc. was founded in 1932 and is headquartered in The Woodlands, Texas.

Great Penny Stocks To Own For 2013:Transocean Inc. (RIG)

 Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. The company also offers well and logistics services. In addition, it engages in oil and gas exploration, development, and production activities primarily in the United States offshore Louisiana and Texas, and in the United Kingdom sector of the North Sea. As of February 10, 2011, the company owned, had partial ownership interests in, and operated 138 mobile offshore drilling units, including 47 high-specification floaters, 25 midwater floaters, 9 high-specification jackups, 54 standard jackups, and 3 other rigs, as well as 1 ultra-deepwater floater and 3 high-specification jackups under construction. Transocean Ltd. was founded in 1953 and is based in Zug, Switzerland.

Advisors' Opinion:

  • By John Paulson At 2011-10-6

    Transocean LTD., formerly Transocean Inc., is an international provider of offshore contract drilling services for oil and gas wells. Transocean Ltd. has a market cap of $24.06 billion; its shares were traded at around $75.41 with a P/E ratio of 13.11 and P/S ratio of 2.51. Transocean Ltd. had an annual average earnings growth of 12.7% over the past 10 years. GuruFocus rated Transocean Ltd. the business predictability rank of 2.5-star.

    Transocean stock has not quite recovered from the market crash of 2008, when it plunged from a $160 range to the low $40 range. As of April 25, 2011, it is selling at $73.40, with a 52-week high of $90.53. Year to date, it is up 5.6%.

    Paulson initiated his stake in the company in the fourth quarter of 2010. He bought 7.2 million shares at an average price of $67.17. The stock has gained 12.3% since then.

    Transocean owned the right that exploded in the Gulf of Mexico oil spill in April, 2010. From 2006-2009, the company earned net income of $1 billion to over $5 billion. In 2010, the year of the oil spill, it took a dramatic hit, earning $961 million in net income. In the fourth quarter of 2010, it lost $799 million in net income. Transocean had a gross profit margin of 46.5% in 2010.

    In April, Transocean’s ultra-deepwater drillship set the record for deepest water drill in history: 10,194 feet off the coast of India. The company will also pay the first installment of a proposed dividend of approximately $1 billion in June.

  • By Brian Stoffel At 2011-10-6

    Finally, a list of energy stocks wouldn't be complete without a pure-play rig maker. Though the company took some hits for its role in the Deepwater Horizon disaster in 2010, that didn't stop Jim Mueller and Michael Olsen from adding Transocean to their portfolios.

    Jim picked the stock back in November 2010 because he thought the market's expectations for the stock were simply messed up. Using a discounted cash flow model, Jim said the stock's price "implies the company can grow [free cash flow] by just 0.7% for each of the next five years, then by 0.4% for the following five years, followed by no more growth forever."

    A quick look at history showed him what a silly assumption this was: "Over the past five years, Transocean has grown free cash flow by an average of 41.7% per year."

    Shares are 19% cheaper than they were when Jim made his original recommendation, which means expectations must be downright outrageous by now.

Friday, March 30, 2012

This week's durable goods orders and housing data do not bode well for Whirlpool

This week, we received worse-than-expected durable goods orders and housing data. In fact, existing homes sales were the worst on record for a single month.

Neither of these reports bode well for home appliances�manufacturer�Whirlpool Corporation (NYSE: WHR), and the stock will likely be negatively affected. But by how much?

A negative trend is already in place, but the stock is sitting at long-term support and may channel here for a while. Therefore, an outright short or long put is not the best trade to make in this situation, but a short option or option spread may make a lot of sense.

Let’s look at a trade that won’t need to move much to make some real money.

Sell to open the WHR September 75/80 call spread.

Target Entry Price:
Right now the spread is paying about $1.76. I think an aggressive limit order at $1.80 has a good chance of being filled.

Exit Forecast:
If the market for WHR surprises us and the stock drops a couple of points very quickly, then the trade could be exited in the near term for 40%-50% of the original premium. However, I suspect we will see a consolidation at this level, so the trade may be on for an extended period. The option has a September expiration, so that holding period won’t be longer than 23 days.

Position Sizing:
With a short call spread, it is easier to calculate the maximum loss than an outright naked position. In this case you could consider the spread between the two strike prices ($5) minus the premium earned ($1.80) as the maximum loss ($3.20) and amount “invested.” This should help you size your position so that if things don’t work out it won’t be too disruptive.

If you want to dig into the details of the trade and learn how to execute a short vertical call spread on a b! earish s tock, watch this video.

Note: This article is for educational purposes. It is important to understand the risks of trading options before you attempt a trade like this.

This article is brought to you by

Daily Trader�s Alert: Red-Hot Trades Sent Right to Your Inbox! – Complete with chart and trading target, this daily stock or ETF pick is e-mailed to you each trading day before the market open. InvestorPlace�s Chief Technical Analyst Sam Collins also gives you his take on what’s slated to impact your portfolio during the trading day. Click here to subscribe to the Daily Trader�s Alert — it�s FREE!

Rockwood Holdings Beats on EPS but GAAP Results Lag

Rockwood Holdings (NYSE: ROC  ) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rockwood Holdings missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share shrank significantly.

Gross margins expanded, operating margins grew, net margins contracted.

Revenue details
Rockwood Holdings recorded revenue of $814.4 million. The seven analysts polled by S&P Capital IQ looked for a top line of $867.1 million on the same basis. GAAP reported sales were 2.0% higher than the prior-year quarter's $798.3 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.91. The seven earnings estimates compiled by S&P Capital IQ predicted $0.79 per share on the same basis. GAAP EPS of $0.79 for Q4 were 43% lower than the prior-year quarter's $1.39 per share.


Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 35.7%, 440 basis points better than the prior-year quarter. Operating margin was 15.1%, 450 basis points better than the prior-year quarter. Net margin was 7.7%, 600 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $950.2 million. On the! bottom line, the average EPS estimate is $1.02.

Next year's average estimate for revenue is $3.91 billion. The average EPS estimate is $4.27.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 329 members out of 346 rating the stock outperform, and 17 members rating it underperform. Among 135 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 133 give Rockwood Holdings a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rockwood Holdings is outperform, with an average price target of $54.43.

  • Add Rockwood Holdings to My Watchlist.

Best Wall St. Stocks Today: ABAT

Advanced Battery Technologies, Inc. (NASDAQ: ABAT) has offered up 3-year projections for the recently acquired Wuxi ZhongQiang Autocycle CO., Ltd., which currently has four production lines in operation with production capability of 100 vehicles per day per line.� The company says this is less than 20% of total capacity.� The projections given are expected to be achieved via an increase in new orders and through more efficiency.

For all of 2009, the unit is expected to contribute revenue of $35.0 to $37.5 million and gross profit of $9.2 to $9.7 million.

For 2010, Advanced Battery Tech believes that growth in domestic and international demand for its products will continue; and it believes Wuxi production will reach approximately two-thirds of its current capacity.� This would allow it to contribute $55 to $65 million in revenue by the end of next year.

For 2011, the company expects to utilize at least 80% to 85% of current capacity.

It was just last week that we saw it give a status update for its Wuxi Zhongqiang vehicles, but today’s guidance is the financial guidance.

The company’s description is in the design, manufacturing, and marketing of rechargeable polymer lithium-ion batteries… in China.

This stock trades an average of almost 500,000 shares per day and its market cap is listed as approximately $217 million.� For a comparison, the company generated $45.172 million in 2008 revenues and generated $31.898 million in 2007 revenues.� There are too few analysts making projections for anything resembling a consensus, but the 2009 “consensus” from Thomson Reuters is $57.2 million in revenues.

Advanced Battery Technologies is seeing a gain of 4% to $3.98, and the 52-week trading range is $1.17 to $6.40.


EZCORP Meets on the Top Line, Misses Where it Counts

EZCORP (Nasdaq: EZPW  ) reported earnings on Jan. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), EZCORP met expectations on revenues and missed on earnings per share.

Compared to the prior-year quarter, revenue increased, and earnings per share increased significantly.

Gross margins grew, operating margins shrank, net margins improved.

Revenue details
EZCORP reported revenue of $249 million. The nine analysts polled by S&P Capital IQ anticipated revenue of $251 million. Sales were 14% higher than the prior-year quarter's $219 million


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.78. The eight earnings estimates compiled by S&P Capital IQ averaged $0.81 per share. GAAP EPS of $0.78 for Q1 were 42% higher than the prior-year quarter's $0.55 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 61.9%, 60 basis points better than the prior-year quarter. Operating margin was 21.9%, 110 basis points worse than the prior-year quarter. Net margin was 15.8%, 330 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $249 million. On the bottom line, the average EPS estimate is $0.75.

Next year's average estimate for revenue is $1.0 billion. The average EPS estimate is $3.05.

Investor Sentiment
The s tock has a four-star rating (out of five) at Motley Fool CAPS, with 593 members out of 614 rating the stock outperform, and 21 members rating it underperform. Among 186 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 183 give EZCORP a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EZCORP is outperform, with an average price target of $40.50.

Over the decades, small-cap stocks, like EZCORP have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

  • Add EZCORP to My Watchlist.

Is SodaStream Fizzling Out?

I've written in the past about SodaStream (Nasdaq: SODA  ) and it's been a bullish CAPScall of mine: The company's growth potential is enormous, it's product is profitable, and its valuation seems reasonable.

However, I have my doubts. And no, it has little to do with the past quarter which -- I agree with fellow Fool Rick Munarriz -- was fairly positive.�

My doubts are with the product itself. I've had my unit for about a year now, and I've stopped using it.�

I stopped using my SodaStream machine because its vaunted convenience never materialized. When I bought the thought of "Soda On Demand" captivated me. But the reality has been less stellar.�

For one, you still have to wait for the water to chill after carbonating it and putting the syrup in. I don't like tap-water-temperature soda, so waiting for it to cool is a pain.�

Second, you have to fill up the bottles with water. Yeah, I know that sounds lazy, but it can take quite a while to fill when you're using a water filter.�Also if your sink is as shallow as mine you have to hold the bottle at a bizarre angle to fill it.

So "Soda On Demand" has not exactly been the reality.�

A Better Opportunity In Monster
Another factor that has changed my mind is finding out more about Monster Beverage (Nasdaq: MNST  ) . I now think that they are the better bet for your thirst-growth dollar, and they're also a CAPScall.

The Monster brand has become a powerful force and that has vanquished stiff opposition from Coca-Cola (NYSE: KO  ) and Pepsi (NYSE: PEP  ) . That says something about their moat. Buffett's formula of "buy commodities, sell brands" seems to be working for them. The company's ROIC was a staggering 31% -- twice that of Coke and Pepsi -- �last y! ear desp ite increased promotional allowances (which should pay dividends down the road) and tons of competitive entrants. By contrast, SodaStream has yet to build a brand around their flavors. The bottles of syrup (such as "Cola," "Cream Soda," and "Grape") are as generic as they come.�

The other thing that Monster has going for them that SodaStream doesn't is that the product has a performance- and mood-enhancing benefit. (Ask any coffee drinker if mainlining large doses of caffeine is an easy habit to break.) SodaSteam's diet energy drink is actually one of the most delicious flavors they have, but I have yet to see them really promote the energy-drink angle, despite the obvious cost savings their product provides.�

Are You Still Using Your Machine?
For now I'll keep my CAPScall, but I have a question for the reader: Are you still using your SodaStream machine? Do you still find it more convenient than store-bought soda, or is there another reason you still use it (or don't)? Let me know -- my CAPScall is counting on you!

You can add any of the companies mentioned here to My Watchlist, a totally free and highly informative service by The Motley Fool. You can start by using the links below. Fool on!

  • Add SodaStream International to My Watchlist.
  • Add Pepsico to My Watchlist.
  • Add Monster Beverage to My Watchlist.
  • Add The Coca-Cola to My Watchlist.

Thursday, March 29, 2012

5 Good Stocks In December 2012

For most individual investors in the U.S., it’s hard to become intimately familiar with the Chinese corporate landscape. After all, American investors have been conditioned to look at opportunities here at home first. But I think this is a mistake.

The fact is that the U.S. market indices rarely lead the world in terms of the performance, so investors who forgo investing in stocks located outside the U.S. are only putting governors on their own bottom line. Still, the question of how you find the best stocks — particularly in such a diverse market as China — is a valid one.

I think the key to unearthing great China investments is to make sure you are buying something with a strong earnings record combined with strong buying pressure. This is true even of U.S. stocks; however, when it comes to stocks you aren’t likely as familiar with, a solid earnings record and a lot of buyers makes all the difference.

5 Good Stocks In December 2012:Siemens AG (SI)

 Siemens Aktiengesellschaft, an electronics and electrical engineering company, operates in the industry, energy, and healthcare sectors worldwide. In the industry sector, the company?s portfolio ranges from industry automation and drives products and services to building, lighting, and mobility solutions and services, as well as includes system integration and solutions for plant business. It offers automation and drives, industrial solutions and services, transportation systems, and Siemens building technologies. In the energy sector, Siemens provides solutions for the generation, transmission, and distribution of power; and extraction, conversion, and transport of oil and gas in the oil and gas industry. In the healthcare sector, it develops, manufactures, and markets diagnostic and therapeutic systems, devices, and consumables; and offers IT systems for clinical and administrative purposes. The company also provides technical maintenance, professional, consulting, and financing services. In addition, Siemens provides financial products and services, such as commercial finance, equity and project finance, treasury and investment management, and project and export finance. Additionally, the company offers insurance solutions, such as claims management; and acts as a broker of company-financed insurances, as well as engages in real estate business. It also has equity investments in a telecommunications infrastructure supplier, household appliance, defense technology, and communication and entertainment device companies, as well as in companies that provide technical building equipment and installation services; and open communications, network, and security solutions. The company was founded in 1847 and is headquartered in Munich, Germany.

5 Good Stocks In December 2012:Hawaiian Holdings Inc. (HA)

 Hawaiian Holdings, Inc., through its subsidiary, Hawaiian Airlines, Inc., engages in the scheduled air transportation of passengers and cargo. It offers daily service on transpacific routes between Hawaii and Los Angeles, Oakland, Sacramento, San Diego, San Francisco, and San Jose, California; Las Vegas, Nevada; Phoenix, Arizona; Portland, Oregon; and Seattle, Washington, as well as daily service on its inter island routes among the four islands of the State of Hawaii. The company also provides scheduled service on its Pacific routes between Hawaii and Pago Pago, American Samoa; Papeete, Tahiti; Sydney, Australia; Manila, Philippines; Tokyo, Japan; and Seoul, South Korea, as well as other ad hoc charters. As of December 31, 2010, its fleet consisted of 15 Boeing 717-200 aircraft for its interisland routes; 18 Boeing 767-300; and 3 Airbus A330-200 aircrafts for its transpacific, Pacific, and charter routes. Hawaiian Holdings, Inc. was founded in 1929 and is headquartered in Honolulu, Hawaii.

5 Good Stocks In December 2012:Arabian American Development Company (ARSD)

 Arabian American Development Company, through its subsidiaries, owns and operates a petrochemical facility located in southeast Texas, which specializes in high purity petrochemical solvents and other solvent type manufacturing. The company, through its 55% interest in Pioche Ely Valley Mines, Inc., owns interests in mining claims in the United States. Arabian American Development Company was founded in 1967 and is based in Sugar Land, Texas.

5 Good Stocks In December 2012:Cinemark Holdings Inc (CNK)

 Cinemark Holdings, Inc. and its subsidiaries engage in the motion picture exhibition business. As of June 30, 2011, it operated 436 theatres with 4,983 screens in 39 states of the United States, as well as in Brazil, Mexico, and 11 other Latin American countries. The company is headquartered in Plano, Texas.

Advisors' Opinion:

  • By Jeff Reeves At 2011-10-21

    Cinemark Holdings Inc. (NYSE: CNK) owns movies theaters across the United States and Latin America, with a total of about 5,000 screens in America alone.

    Current Yield: 4% (84 cents a share annually)

    Dividend History: In June 2010, Cinemark paid a quarterly dividend of 18 cents a share. This July, it will pay 21 cents, for a nearly 17% increase.

    Dividend Outlook: According to Bloomberg, the three-year expected dividend growth rate of CNK is 2.5%.

    Recent Performance: Cinemark has surged over 20% so far in 2011, more than doubling the market. It is approaching a new 52-week high as of this publication.

    Strong Outlook for Shares: Cinemark has seen improving revenue each year since 2007, connecting with movie-goers despite the recession. That’s in part because of growth and acquisitions — most recently it plans to buy a 12-screen cinema in South Carolina. The movie industry may not be booming right now, but CNK could cash in big time when box office receipts improve thanks to its growth over the last few years.

5 Good Stocks In December 2012:M&T Bank Corporation (MTB)

 M&T Bank Corporation operates as the holding company for M&T Bank and M&T Bank, National Association that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. It offers business loans and leases; business credit cards; deposit products, such as demand, savings, and time accounts; and financial services, including cash management, payroll and direct deposit, merchant credit card, and letters of credit. The company also provides residential real estate loans; multifamily commercial real estate loans; commercial real estate loans; one-to-four family residential mortgage loans; investment and trading securities; short-term and long-term borrowed funds; brokered certificates of deposit and interest rate swap agreements related thereto; and branch deposits. In addition, it offers foreign exchange, as well as asset management services. Further, the company provides consumer loans, and commercial loans and leases; credit life, and accident and health reinsurance; and securities brokerage, investment advisory, and insurance agency services. As of December 31, 2009, it had 738 banking offices in New York State, Pennsylvania, Maryland, Delaware, New Jersey, Virginia, West Virginia, and the District of Columbia; a commercial banking office in Ontario, Canada; and an office in George Town, Cayman Islands. The company was founded in 1969 and is headquartered in Buffalo, New York.

Best Wall St. Stocks Today: TM,ECM

Toyota Motor (NYSE: TM) probably recalled as many cars in 2010 as� the company has made since it was founded.

Today, Toyota added to that list–if that is possible. The Japan-based company said “it will conduct a voluntary safety recall involving approximately 1.13 million 2005-2008 Model Year Toyota Corolla and Corolla Matrix vehicles sold in the United States to address some Engine Control Modules (ECM) that may have been improperly manufactured.”

“On vehicles equipped with the 1ZZ-FE engine and two-wheel drive, there is a possibility that a crack may develop at certain solder points or on the electronic component used to protect circuits against excessive voltage (varistor), on the ECM�s circuit board. In most cases, if a crack occurs at certain solder points or on certain varistors, the check engine may illuminate, harsh shifting could result, or the engine may not start. “

In plain English, that means the cars could stall, which would probably be dangerous if it happened on a busy freeway

Douglas A. McIntyre

PWRM, BCRX, Stock Report! Power 3 Medical Products Inc. and BioCryst Pharmaceuticals, Inc.

Dr Stock Pick HOT News & Alerts!


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Monday October 26, 2009 Stock Report!


PWRM, Power 3 Medical Products Inc, PWRM.OB

Power3 Medical Products, Inc. is a leading bio-medical company engaged in the commercialization of neurodegenerative disease and cancer biomarkers, pathways, and mechanisms of diseases through the development of diagnostic tests and drug targets. Power3�s patent-pending technologies are being used to develop screening and diagnostic tests for the early detection and prognosis of disease, identify protein biomarkers, and drug targets. Diagnostic tests are targeted toward markets with critical unmet needs in areas including neurodegenerative disease (NuroPro) and breast cancer (BC-SeraPro). Power3 expects to complete phase II clinical validation trials of its blood serum diagnostics for Alzheimer�s disease (NuroPro-AD), and Parkinson�s disease (NuroPro-PD) in 2009 and for breast cancer in 2010, followed by filings with the FDA. Power3 operates a state-of-the-art CLIA certified laboratory in The Woodlands (Houston), Texas. Power3 continues to evolve and enhance its IP portfolio, employing sensitive and specific combinations of biomarkers it has discovered from a broad range of diseases as the basis of highly selective blood-based tests for ALS, Alzheimer�s, and Parkinson�s diseases, and breast cancer.

PWRM Announced that its Chief Scientific Officer is Chair an! d Keynot e Speaker of Session at the BTI Life Sciences 2nd Annual Congress and Expo of Molecular Diagnostics in Beijing, China in November 2009

Further international recognition of validity as the company�s President and CSO, Dr. Ira Goldknopf will deliver an invited Keynote address and chair a session on �Biomarkers and Diagnostics in Personalized Medicine (Track 6-4),� at the BIT Life Sciences 2nd International Congress and Expo of Molecular Diagnostics in Beijing, China, November 19-21, 2009. The Theme of the meeting is �New Leadership of Personalized Medicine.�

More about PWRM at

BCRX, BioCryst Pharmaceuticals, Inc.

U.S. President Barack Obama has declared 2009 H1N1 swine flu a national emergency, the White House said on Saturday.

BCRX designs, optimizes and develops novel small-molecule pharmaceuticals that block key enzymes involved in infectious diseases, cancer and inflammatory diseases. BCRX has progressed two novel compounds into late-stage pivotal clinical trials; peramivir, an anti-viral for influenza, and forodesine, a purine nucleoside phosphorylase (PNP) inhibitor for cutaneous T-cell lymphoma

The U.S. Food and Drug Administration (FDA), in response to a request from the U.S. Centers for Disease Control and Prevention, has issued an emergency use authorization for the investigational anti-viral drug intravenous (i.v.) BCRX�s Peramivir in certain adult and pediatric patients with confirmed or suspected 2009 H1N1 influenza infection who are admitted to a hospital.

More about BCRX at

Keep a close eye on PWRM and BCRX, do your homework, and like always BE READY for the ACTION!

Stocks: Greece's debt talks in focus

NEW YORK (CNNMoney) -- As investors return from the weekend, Monday is already starting off a lot like Friday did: Greece's debt talks are still in limbo, and U.S. companies continue to report earnings.

S&P 500 (SPX), Dow Jones industrial average (INDU) and Nasdaq (COMP) futures gained 0.1% ahead of the opening bell. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.

Greek debt talks are said to be progressing, but officials have yet to announce a deal to scale back the nation's overwhelming debt load.

The deal is a key condition for Greece to receive additional bailout funds from the European Union and International Monetary Fund. Without this financial support, Greece may not be able to make a €14 billion payment it owes on bonds that comes due March 20.

Eurozone finance ministers are also holding a two-day meeting that kicks off Monday, and the debt talks will likely dominate the talks.

Greek debt talks in limbo

Tech stocks were getting an early boost after BlackBerry maker Research in Motion (RIMM) announced its co-CEOs Jim Balsillie and Mike Lazaridis will hand over the top job to former Chief Operating Officer Thorsten Heins. Shares rose more than 3% in premarket trading.

All three indexes closed out last week more than 2% higher, buoyed by solid corporate earnings from Wall Street banks and some of the nation's largest tech firms.

Economy: While anxieties over Europe remain, this week is also busy with U.S. economic news.

The Federal Reserve starts a two-day meeting on Tuesday, and for the first time ever, the central bank will release forward-looking forecasts for the federal funds rate. The government also releases its first estimate of fourth-quarter economic growth on Friday.

"There are some concerns off and on about Europe, but I think the focus is really going to be on the Fed policy announcement on Wednesday, and GDP numbers later in the week," said Scott ! Brown, c hief economist at Raymond James.

World markets: European stocks gained in morning trading. Britain's FTSE 100 (UKX) rose 0.6%, the DAX (DAX) in Germany added 0.4% and France's CAC 40 (CAC40) ticked up 0.4%.

Markets in Hong Kong and China are closed Monday for Chinese New Year. Japan's Nikkei (N225) ended flat.

Companies: Shares of Carnival Corp. (CCL), which owns the grounded Italian cruise liner Costa Concordia, slumped 2% in premarket trading. Carnival's stock has dropped nearly 8% since the Jan. 13 accident.

Oilfield services giant Halliburton (HAL, Fortune 500) released quarterly results that beat the Street on both earnings and revenue, but its shares edged lower in premarket trading.

Currencies and commodities: The dollar lost ground against the euro and the Japanese yen, but rose versus the British pound.

Oil for March delivery added 75 cents to $99.08 a barrel.

Gold futures for February delivery rose $7 to $1,671 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 2.03%.  

Asset Allocation: First Quadrants Ed Peters Favors Allocating by Risk

“Volatility,” says Ed Peters, partner and co-director of Global Macro at First Quadrant, “will be chronically low for awhile.” Yes, volatility responds to current events, such as the unfolding unrest in the Middle East, but it is broadly responsive to the business cycle, Peters notes, saying that we are in the part of the cycle that means low volatility.

From “2003 to 2006 there was low volatility,” Peters told AdvisorOne in New York on Feb 18. We had “high volatility from 2007 until mid-2010.” Now that volatility is low again, what does that mean for asset allocation? This topic came up because of a recent AdvisorOne Webinar, “Using Volatility as an Asset Class.” First Quadrant’s Director of Research, Paul Goldwhite, has written about this topic.

“We need strategies that build assets in rising markets and preserve them in declining markets,” advises Peters.

Peters uses “quantitative tools” tempered with qualitative factors to adjust First Quadrant’s investment strategies. “In low-volatility environments, you increase equities and reduce bonds to keep risk levels up; in high-volatility environments, you reduce equities to reduce risk levels,” he explains. The firm has $18 billion under management, “mostly for institutions,” and sub-advises mutual funds at Managers Investment Group.

Risk Parity—Balancing the Risk

For the past several years, Peters has been using a “risk parity strategy, balancing risks between stocks and bonds. It’s catching on now,” he says. For this strategy, he will “allocate according to risk, versus allocating according to capital.”

Long and Short

Peters has used a risk parity strategy since 2007 (when he was at a prior firm), and it’s been offered as one of the strategies at First Quadrant since 2009. For those who prefer to use mutual funds, the risk parity strategy is used in the first Quadrant sub-advised FQ Global Alternatives Fund, MGAIX (institutional class). This is a “global, tactical asset allocation fund” that makes long or short tactical allocations to equities, bonds and currency—allocating according to risk. The fund can use options, futures and forward contracts (derivatives) to make some of the allocations, and to get the desired risk exposures across asset classes, global geography and currencies. Balancing the risk equals “true diversification,” Peters emphasizes.

Long Only

One of the other mutual funds that First Quadrant sub-advises is the FQ Global Essentials Fund, MMAFX (institutional class), a “balanced, long-only” fund that invests tactically in stocks, bonds and commodities. This fund uses the “risk parity principles, balancing the risks between stocks and bonds,” says Peters.

Where do risk parity strategy funds belong in investors’ portfolios? “For a smaller investor, [Global Essentials, the long-only fund] is a good core strategy,” Peters explains, because it provides global allocation to stocks, bonds and commodities by risk instead of market cap. Investors, “just can't get greedy in a bull market—[it does] well in a bull market but won’t shoot the lights out.” Conversely, in a falling market, it is designed to preserve capital better than funds allocated by market cap instead of by risk. It has a “50% correlation, as opposed to most balanced funds,” which Peters says “have a 90% correlation with equities.”

First Quadrant also sub-advises the FQ Tax-Managed U.S. Equity Fund, an all-cap core tax managed fund, and FQ U.S. Equity Fund, an all-cap core equity fund, both at Managers Investment Group.

Wednesday, March 28, 2012

KCI Announces Agreement to Be Acquired by Consortium Including Apax Partners, CPPIB and PSP Investments in Transaction Valued at $6.3 Billion

KCI Shareholders to receive $68.50 per share in cash

SAN ANTONIO–(CRWENewswire)– Kinetic Concepts, Inc. (NYSE:KCI) today announced that it has entered into a definitive merger agreement under which a consortium comprised of funds advised by Apax Partners, together with controlled affiliates of Canada Pension Plan Investment Board and the Public Sector Pension Investment Board, will acquire KCI for $68.50 per share in cash in a transaction valued at $6.3 billion (including KCI�s outstanding debt).

This per share acquisition price represents a premium of approximately 21 percent to the one-month historical average stock price of $56.49 through July 5, 2011 (one day prior to press speculation of a transaction) and a premium of 52 percent to the 12-month historical average stock price of $45.01 through July 5, 2011.

The board of directors of KCI has unanimously approved the merger agreement and recommended that KCI�s shareholders adopt the agreement with the consortium. A special meeting of KCI�s shareholders will be held as soon as practicable after the filing of a definitive proxy statement with the U.S. Securities and Exchange Commission (SEC) and subsequent mailing to shareholders. The mailing of the proxy statement is expected to take place following the expiration of a 40-day �go-shop� period, during which KCI is permitted to encourage and solicit alternative proposals from third parties.

The agreement will bring together KCI�s clinical expertise, commercial capabilities and global reach with a seasoned group of investors that has expertise in global markets and a proven track record in healthcare sector investments.

�This consortium is a group of well-respected investors whose interest in KCI represents an endorsement of our market leadership, differentiated products and services and consistently strong performance,� said Cathy ! Burzik, KCI president and CEO. �We�re proud of what we�ve achieved in the marketplace and will continue making the right investments in people, product innovation and commercial capabilities that help the medical community deliver superior outcomes to patients.�

�We are highly impressed by the culture of innovation at KCI and are excited to work with a business that produces solutions that dramatically improve the lives of many people around the world,� said Buddy Gumina, partner and co-head of the Apax Healthcare team. �Over the years, we have reviewed multiple investments in the medical devices and products industry, having originally identified it as a key growth sector within our overall healthcare investment practice. Based on this experience, we possess a deep understanding of KCI�s business and the markets in which the company operates. We are delighted to have the opportunity to partner with CPPIB and PSP Investments to support the company�s continued growth.�

James R. Leininger, founder of KCI and chairman emeritus, and certain shareholder parties related to or affiliated with him, which collectively hold approximately 11% of the company�s outstanding shares, have entered into a voting agreement with the consortium under which those shareholders have agreed to vote their shares in favor of the transaction.

The consortium has secured committed debt financing from Morgan Stanley & Co. LLC, BofA Merrill Lynch and Credit Suisse AG. These funds, in addition to equity financing from funds advised by Apax Partners, CPPIB and PSP Investments, will finance the cash consideration to KCI�s shareholders.

J.P. Morgan Securities, LLC is acting as financial advisor to KCI. Skadden, Arps, Slate, Meagher & Flom LLP and Cox Smith Matthews Incorporated are acting as legal advisors to KCI.

Morgan Stanley & Co. LLC is acting as financial advisor to the consortium. Simpson Thacher & Bar! tlett LL P is acting as legal advisor to the consortium. Kirkland & Ellis LLP is acting as legal advisor on the financing to the consortium. Epstein Becker is acting as healthcare regulatory counsel to the consortium.

The transaction is subject to certain closing conditions, including the approval of KCI�s shareholders, regulatory approvals and the satisfaction of other customary closing conditions but is not subject to any condition with regard to the financing of the transaction. The transaction is currently expected to close in the second half of 2011.

KCI will be submitting a current report on form 8-K with the U.S. Securities and Exchange Commission containing a summary of terms and conditions of the proposed acquisition.

About KCI

Kinetic Concepts, Inc. (NYSE:KCI) is a leading global medical technology company devoted to the discovery, development, manufacture and marketing of innovative, high-technology therapies and products for the wound care, tissue regeneration and therapeutic support system markets. Headquartered in San Antonio, Texas, KCI’s success spans more than three decades and can be traced to a history deeply rooted in innovation and a passion for significantly improving the healing and the lives of patients around the world. The company employs approximately 7,100 people and markets its products in more than 20 countries. For more information about KCI and how its products are changing the practice of medicine, visit

About Apax Partners

Apax Partners is one of the world�s leading private equity investment groups. It operates across the United States, Europe and Asia and has more than 30 years of investing experience. Funds under the advice of Apax Partners total over $40 billion around the world. These Funds provide long-term equity financing to build and strengthen world-class companies. ! Apax Par tners Funds invest in companies across its global sectors of Tech & Telecom, Retail & Consumer, Media, Healthcare and Financial & Business Services. For more information about Apax Partners, please visit

About Canada Pension Plan Investment Board

Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2011, the CPP Fund totaled $148.2 billion. For more information about CPPIB, please visit

About PSP Investments

The Public Sector Pension Investment Board is a Canadian Crown corporation established to manage investments for the pension funds of the Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. PSP Investments� mandate is to manage funds entrusted to it in the best interests of the contributors and beneficiaries of the pension plans and to maximize investment returns without undue risk of loss having regard to the funding, policies and requirements of the plans and their ability to meet their financial obligations. For more information about PSP Investments, visit

Additional Information about the Merger and Where to Find It

This press release may be deemed to be solicitation material in respect of the proposed acquisition of Kinetic Concepts,! Inc. (� KCI�) by a consortium comprised of funds advised by Apax Partners, L.P. and Apax Partners LLP, together with controlled affiliates of Canada Pension Plan Investment Board and the Public Sector Pension Investment Board. KCI plans to file a proxy statement with the SEC. INVESTORS AND SECURITY HOLDERS OF KCI ARE ADVISED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED ACQUISITION. The definitive proxy statement will be mailed to shareholders of KCI. Investors and security holders may obtain a free copy of the proxy statement when it becomes available, and other documents filed by KCI with the SEC, at the SEC�s web site at Free copies of the proxy statement, when it becomes available, and KCI�s other filings with the SEC may also be obtained from KCI by directing a request to Kinetic Concepts, Inc., Attention: Investor Relations, 8023 Vantage Drive, San Antonio, TX 78230-4726, or by calling 210-255-6157.

KCI and its directors, executive officers and other members of its management and employees may be deemed to be soliciting proxies from KCI�s shareholders in favor of the proposed acquisition. Information regarding KCI�s directors and executive officers is available in its 2010 Annual Report on Form 10-K filed with the SEC on March 1, 2011, and definitive proxy statement relating to its 2011 Annual Meeting of Shareholders filed with the SEC on April 15, 2011. Shareholders may obtain additional information regarding the interests of KCI and its directors and executive officers in the proposed acquisition, which may be different than those of KCI�s shareholders generally, by reading the proxy statement and other relevant documents filed with the SEC when they become available.

Forward Looking Statements

This communication contains forward-looking statements, which ma! y be ide ntified by words such as �believes,� �expects,� �anticipates,� �estimates,� �projects,� �intends,� �should,� �seeks,� �future,� �continue,� or the negative of such terms, or other comparable terminology. Forward-looking statements are subject to risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. Factors that could cause actual results to differ materially include, but are not limited to: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (2) the outcome of any legal proceedings that may be instituted against KCI and others following announcement of the merger agreement; (3) the inability to complete the merger due to the failure to satisfy the conditions to the merger, including obtaining the approval of at least two-thirds of KCI�s shareholders, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the receipt of other required regulatory approvals; (4) risks that the proposed transaction disrupts current plans and operations and potential difficulties in employee retention as a result of the merger; (5) the ability to recognize the benefits of the merger; (6) legislative, regulatory and economic developments; and (7) other factors described in KCI�s filings with the SEC. Many of the factors that will determine the outcome of the subject matter of this communication are beyond KCI�s and the consortium�s ability to control or predict. KCI can give no assurance that the conditions to the merger will be satisfied. Except as required by law, KCI undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. KCI is not responsible for updating the information contained in this communication beyond the published da! te, or f or changes made to this communication by wire services or Internet service providers.


KCI Corporate Communications
Kevin Belgrade, 210-216-1236
KCI Investor Relations
Todd Wyatt, 210-255-6157

Source: Kinetic Concepts, Inc.


10 Stocks to Buy, Hold, and Behold In This New Bull Move

“So, what should investors do�now? It’s clear that many are taking advantage of low stock prices, as the stock market’s massive meltdown has provided a boatload of opportunities. Without doubt, stocks are priced at truly bargain levels, based on almost every market benchmark, including price-earnings ratios, cash flow, and intrinsic values relative to assets.

“Where is the buying coming from? The billions of dollars that have been sidelined by reluctant investors in the U.S. and abroad will be the�drivers of the market’s next massive bull move. ‘As a result of the many months of market declines, there are now�many trillions of dollars (historically record levels) on the sidelines waiting for the opportunity to achieve better returns (in the stock market) than those offered by cash,’ says investment manager Arnold Schmeidler, president of A.R. Schmeidler Investment Advisors. And as�’we emerge from this period, the great values that are being created could result in investment returns that are the most attractive that have been seen in years.’ he argues.”

These words could have been written today, to appropriately describe what’s happening now in the market. But in truth, they were�part of what I wrote in my column�in the old, pre-Bloomberg Business Week magazine, on Apr. 20, 2009. Yes, that was some three years ago.

My assertions then about the market�turned out to be on the money, and�I would use the same observations today and�expect�they�would again be on target�for the next year or two.

Indeed, it’s�refreshing and helpful�to look back and check at what we were thinking during� important events,�especially for journalists and market�commentators, to see the sanity or insanity behind�our thoughts.

In this particular case, revisting my April 2009 column,�written�right after the Dow Jones industrial average hit a low of 6,500 — on the heels of a�steep fall of�s! ome 7,50 0 points in 2007 through 2008 — reveals a couple of important facts: The market did continue to rise through 2012, and several blue-chip and large-cap stocks that rode that bull move then continue to perform superbly�and, in my humble opinion, should continue to do�even better in this current bull, if still restrained,�move.

I would venture to say that 10 of the stocks I had favorably highlighted�in my�Business Week column deserves, again, to be bought,�held and embraced in this fresh bull move.

The stocks are Apple (APPL), Caterpillar (CAT), ConocoPhillips (COP), ExxonMobile (XOM), International Business Machines (IBM), Johnson & Johnson (JNJ), Microsoft (MSFT), Pfizer (PFE), Polycom (PLCM), and Union Pacific (UNP).

They were gigantic winners from Mar. 9, 2009 through Mar. 27, 2012, and for my money, they should achieve continued�high-performance over the next couple of years, at least.

Job challenges loom for war vets

NEW YORK (CNNMoney) -- Veterans of the wars in Iraq and Afghanistan face unique hurdles in an already tough job market.

Many have suffered physical and mental injuries. Others have a hard time getting employers to see the value of their wartime experience.

"Being the best mortar man in the best battalion in the world doesn't mean a whole lot when you come out," said Sean Parnell, author of "Outlaw Platoon," a book about his experiences as an Army platoon leader in Afghanistan in 2006. "Fifty percent of my men who are now out of the military are living paycheck to paycheck -- working as a busboy, or at a bar, or maybe not working at all."

More than 2.2 million soldiers, Marines and sailors have served in Iraq or Afghanistan. Another 90,000 troops are slated to return from Afghanistan by 2014.

For a long time, post 9/11 veterans have faced a much higher jobless rate than the general population. Just a year ago, it stood at 12.5%, well above the national average. A big push by employers and government knocked the rate to 7.6% in February, even below the overall U.S. unemployment rate of 8.3%.

Still, many veterans struggle to find work.

"These guys have these bang-up resumes for the military and then they get out and civilians don't know what to do with them," said Parnell. "So they end up working at a Subway."

Best jobs if you're leaving the military

This is what happened to one of his former troops, 27-year-old Marcel Rowley, who went from being a combat infantryman in Afghanistan to a minimum-wage busboy in California. Rowley, who had been in firefights with insurgents in the Afghan mountains, had to compete against high school kids to get a restaurant job.

"It took a lot of self control," Rowley said, recalling the times when he dealt with difficult customers. "I definitely had times when I wanted to rip people's faces off."

He realized his military experience meant ! nothing at home. He had gone to boot camp right after high school, and he said that in the eyes of employers it was almost as if he'd been frozen in time.

Rowley -- who is now a full-time student on the GI Bill at South Lake Tahoe Community College in California -- and many young vets like him never had a chance to build resumes in the civilian work force.

Other ex-soldiers have difficulty getting work because they're suffering from post-traumatic stress disorder, which can often go undiagnosed, according to Parnell, who is pursuing a Ph.D. in clinical psychology in Pittsburgh.

Chris Brown, who also served with Parnell, struggled to find work for years before going on full disability for PTSD. When returned from Afghanistan in 2007 he initially received 50% disability for PTSD and shrapnel injuries. He tried to find work in the United States, and then spent a couple of years working odd jobs in Canada.

"I actually had to move to Canada to find work," Brown said, a former Humvee gunner. "I was an illegal immigrant in Canada!"

When he finally came back to the states, Veterans Affairs put him on 100% disability for PTSD, which now pays him $32,000 a year.

Phillip Baldwin, 40, had a career to come home to after his stint in Afghanistan, but both his tour and his options were cut short when he was shot in the spine and foot during a firefight.

Before joining the military, the father of four worked as a conductor and dispatcher at the St. Louis railroad terminal. He was medically retired from the Army and, after months of hospitalization, returned to work for the railroad.

Baldwin's injuries prevented him for being a conductor, so he became a dispatcher. Then his nerve damage got worse, and he had to go on a morphine pump just to function. The drugs created a safety hazard, so his responsibilities were scaled back. Eventually, he was laid off.

"They didn't have to keep on a damaged employee who really didn't add a tremendous amount to t! heir wor k force," Baldwin said. "I acknowledge that. But I felt kind of ashamed."

Hydrogen fuel cells join the Army

He realized he had to rely on his mind instead of his body to make a living, so he returned to college through a program funded by the Department of Veterans Affairs.

Baldwin expects to graduate in May with a degree in political science from Southern Illinois University-Edwardsville. He will begin law school at St. Louis University in August.

Every soldier has a military occupational specialty, a skill that requires specific training. Some of these skills -- such as pilot, dentist or mechanic -- have a natural fit in the civilian world.

But infantryman often find that their skills are not so easily transferable -- unless they want to be police officers.

Chris Cowan, who served in Afghanistan in 2006 and 2007, has been an officer with the Syracuse Police Department in New York for four years. He says it's a job where wartime experience is a valuable skill.

"To be a good cop, it helps to be a little paranoid, and infantrymen who have been in combat tend to be a little paranoid," Cowan said. 

State of the Union Excerpts Outline Speech Focused on Income Inequality, Job Creation

With March Madness following on the heels of a stellar Super Bowl, a month before Tiger Woods‘ return to golf at The Masters, CBS (CBS) is basking in the glow of profitable live big event sports on TV and online.

But 2011 will be a different ball game financially for the media company still anchored in broadcast TV advertising.

March Madness is just the latest in a string of live big event sports CSB is cashing in this year from advertising and access fees on television, online and on mobile devices.

CBS has created a successful strategy for its far-reaching March Madness coverage, the first event of its kind to reach a multi-media parity generating $4.76 per viewer offline and $4.26 per viewer online, according to Advertising Age. CBS expects to generate $37 million in ad revenues from all 64 of its March Madness On Demand, and could top the $619 million in TV advertising and 130 million viewers its NCAA Basketball tournament telecast rendered in 2009, according to WPP’s Kantar Media research. Just as important, CBS will likely have an increased take rate for its $9.99 March Madness iPhone app (AAPL), which is double last year’s price and second in paid sports to Major League Baseball’s $14.99 app.

The more than $200 million in revenues generated by CBS’ Super Bowl telecast last month was a nice balance sheet addition, even though it failed to cash in on all the social media and online buzz primarily around the commercials.

CBS’ live telecast of The Masters was presold to advertisers before Tiger Woods announced his return to golf at the tournament next month. Pricing for the five percent unsold advertising invento! ry and t he ratings will surely get a boost.

The sporting triad will contribute to CBS’ overall strong revenue and earnings rebound in 2010, also supported by economic recovery, good prime time ratings and election year advertising. To be sure, it will be easy for most companies to show improvement over 2009’s financial disaster, especially when combined with aggressive cost cuts.

CBS overall is expected to post 28 percent growth in EBITDA to $2.33 billion in 2010, primarily driven by 60 percent earnings growth in local TV and radio broadcasting, according to Bernstein Research analyst Michael Nathanson. The CBS TV Network is the largest individual business income source, expected to contribute nearly half of all revenues, but only five percent of earnings.

But 2011 will be a different story, when CBS’s total revenue (a mere 0.6 percent) and earnings growth (at 1.4 percent) will flatten out even with the continuing boost from retransmission fees, Nathan predicts. There is no political spending and the state of lucrative sports events is up in the air. After 11 consecutive years, The Masters will return to CBS only if the network coughs up $2.13 billion for a three-year option to keep the NCAA from prematurely exiting their pact after 2010.

Those kinds of big event price tags will get dicey for CBS, the closest thing to a pure broadcast entity and the smallest of the big media companies, which is saddled with more than $8 billion in debt. Although political advertising will add about $50 million to CBS’ 2010 earnings, and hefty retransmission fees will generate $225 million over the next three years, the wild card will be the advertising revenue that comprises more than 70 percent of overall income and relies on volatile old fashioned TV, radio and outdoor.

Needham analyst Laura Martin makes the contrarian argument that it also could be CBS’ defining streng! th, eve n without all the multi-billion dollar sports.

Martin has raised her target price and has a “buy” rating on CBS based on near-term catalysts and the belief that the mass audiences that CBS and other broadcast networks continue to deliver (albeit in numbers smaller than in their heyday) will become more valuable to advertisers as new media’s expanding audiences remain highly fragmented.

She estimates that more than $100 billion in annual ad spending is at stake and that broadcasters such as CBS stand a good chance of protecting from wholesale migration to digital media. “Broadcasters appear least vulnerable to being disrupted by online advertising choices,” Martin writes in her new report on CBS. ”The fact that broadcast TV has continued to grow in the face of the onslaught of online media alternatives and fracturing audiences implies there is something substantively different (and defendable) about broadcast TV.”.
Original post at BNET (owned by CBS).

Disclosure: None

Great Stocks In 2013

Water is the most important natural resource on the planet; without it, life as we know it ceases to exist. Water should also be an asset in most investors’ portfolios, if for no other reason than manufacturers offer a limited source with unlimited demand. These companies tend to be stable, profitable ventures; this is a perfect combination to add to anyone’s holdings. Six of the best water stocks to consider for 2013 are:

Great Stocks In 2013:China Metro-Rural Holdings Limited (CNR)

 China Metro-Rural Holdings Limited, through its subsidiaries, primarily engages in the development and operation of agricultural logistics and trade centers in northeast China. It also involves in purchasing, processing, assembling, merchandising, and distributing pearls and jewelry products. The company markets its pearls and jewelry products to wholesale distributors and mass merchandisers in Europe, the United States, Hong Kong, and other parts of Asia. In addition, it develops, sells, and leases residential and commercial properties in Hong Kong and the People?s Republic of China. The company is based in Tsimshatsui, Hong Kong.

Advisors' Opinion:

  • By Wyatt Research Staff At 2011-8-30

    The stock moved significantly higher in mid-January and traded in a fairly tight range ever since. However, that could change soon. China's agricultural exports to Japan will grow if radiation continues to seep into the food chain.

    China exported $593 million worth of agricultural goods to Japan last year.

Great Stocks In 2013:Miller Energy Resources Inc. (MILL)

 Miller Energy Resources, Inc. engages in the exploration, production, and drilling of oil and natural gas resources in the United States. It primarily holds interests in approximately 600,000 lease acres located in the Cook Inlet area of Alaska; and 54,500 acres of lease holdings located in the Appalachian Basin, Tennessee. The company was formerly known as Miller Petroleum, Inc. and changed its name to Miller Energy Resources, Inc. on April 12, 2011. Miller Energy Resources, Inc. is headquartered in Huntsville, Tennessee.

Great Stocks In 2013:Emerson Radio Corporation (MSN)

 Emerson Radio Corp., together with its subsidiaries, engages in designing, sourcing, importing, marketing, selling, and licensing various house ware and consumer electronic products in the United States and internationally. It offers house wares products, such as microwave ovens, compact refrigerators, and wine coolers; audio products comprising digital clock radios, portable stereo systems, and other audio products; and video and other products, including televisions, digital video disc (DVD) players, mobile electronics, and telephone and telephone accessories. The company provides its products under the Emerson, HH Scott, and Olevia brands. It markets its products primarily through mass merchandisers. The company was founded in 1948 and is headquartered in Moonachie, New Jersey. Emerson Radio Corp. operates as a subsidiary of Grande Holdings Limited.

Great Stocks In 2013:MarkWest Energy Partners LP (MWE)

 Markwest Energy Partners, L.P., together with its subsidiaries, engages in the gathering, processing, and transportation of natural gas. The company also transports, fractionates, storages, and markets natural gas liquids; and gathers and transports crude oil, as well as owns a crude oil transportation pipeline in Michigan. It conducts its operations in the Southwest, the Northeast, Liberty, and the Gulf Coast. MarkWest Energy GP, L.L.C. serves as the general partner of the company. MarkWest Energy Partners, L.P. was founded in 1988 and is based in Denver, Colorado.

Great Stocks In 2013:Curtiss-Wright Corporation (CW)

 Curtiss-Wright Corporation, together with its subsidiaries, designs, manufactures, and overhauls precision components and systems. It operates in three segments: Flow Control, Motion Control, and Metal Treatment. The Flow Control segment designs, manufactures, and distributes engineered products, including valves, pumps, motors, generators, instrumentation, shipboard systems, and control electronics that manage the flow of liquids and gases, generate power, provide electronic operating systems, and monitor or provide critical functions for naval defense, power generation, oil and gas, and general industrial markets. The Motion Control segment designs, develops, manufactures, and maintains mechanical actuation and drive systems, specialized sensors, motors, electronic controller units, and embedded computing components and control systems for ground defense, aerospace defense, commercial aerospace, and general industrial markets. The Metal Treatment segment provides metallurgical processing services comprising shot peening, laser peening, specialty coatings and heat treating for commercial and defense aerospace, oil and gas, power generation, automotive, transportation, construction equipment, and miscellaneous metal working industries. The company operates primarily in the United States, the United Kingdom, and Canada. Curtiss-Wright Corporation was founded in 1929 and is headquartered in Parsippany, New Jersey.

Great Stocks In 2013:Google Inc. (GOOG)

 Google Inc. maintains an index of Web sites and other online content for users, advertisers, and Google network members and other content providers. It offers AdWords, an auction-based advertising program; AdSense program, which enables Web sites that are part of the Google Network to deliver ads from its AdWords advertisers; Google Display, a display advertising network that comprises the videos, text, images, and other interactive ads; DoubleClick Ad Exchange, a real-time auction marketplace for the trading of display ad space; and YouTube that provides video, interactive, and other ad formats for advertisers. The company also provides Google Mobile that optimizes Google?s applications for mobile devices in browser and downloadable form; and enables advertisers to run search ad campaigns on mobile devices, as well as Google Local that provides local information on the Web; and Google Boost for small businesses to participate in the ads auction. In addition, it offers Android, an open source mobile software platform; Google Chrome OS, an open source operating system; Google Chrome, a Web browser; Google TV, a platform for the consumers to use the television and the Internet on a single screen; and Google Books platform to discover, search, and consume content from printed books online. Further, the company provides Google Apps, a cloud computing suite of message and collaboration tools, which includes Gmail, Google Docs, Google Calendar, and Google Sites; Google Search Appliance that offers real-time search of business and intranet applications, and public Web sites; Google Site Search, a custom search engine; Google Commerce Search for online retail enterprises; Google Checkout to make online shopping and payments streamlined and secure; Google Maps Application Programming Interface; and Google Earth Enterprise, a firewall software solution for imagery and data visualization. Google Inc. was founded in 1998 and is headquartered in Mountain View, California.

Advisors' Opinion:

  • !

    By McWillams At 2012-1-11

    This stock has been going up higher and higher for at least the last 10 years.  They don’t seem to be letting up.  On the fundamental side, their market share is growing as well as the market itself.  They are starting to get into the social networking space as well with the recent release of Google+.  The thing you want to watch for is their operational costs.  It’s been rising very quickly due mostly to hiring costs.  I don’t foresee that stabilizing at any point.  Just make sure the earnings are growing faster than rising costs.

  • By Bill At 2011-8-28

    Google Inc. (Nasdaq: GOOG : 527.415.92) announced to have purchased technology patents from International Business Machine Corp. (NYSE: IBM) as the former stocks up on intellectual property to defend itself against lawsuits. Shares of IBM were down 0.33 percent or 60 cents to trade at $181.20 in the pre-market trading. Shares of Google had closed at $610.94 yesterday.

  • By Chuck At 2011-8-26


    The brokerage expect outperformance for Google, given continued strength in the paid search market driven by a modestly improving economy and online share gains and traction with non-search businesses, primarily display and mobile. The brokerage is modeling 18 percent and 19 percent revenue and EPS growth,! respect ively, in 2011.

  • By Sy_Harding At 2011-8-26


    With a PEG ratio of 0.6 Google is trading at a big discount compared to its peers. With a recovering economy and growing technology sector I see GOOG poised to hit $700.

Great Stocks In 2013:Panasonic Corporation (PC)

 Panasonic Corporation develops, manufactures, and sells electronic products worldwide. The company offers video and audio equipment, and information and communications equipment; imaging equipment, such as flat-panel TVs and LCDs; digital AVC network equipment, including blu-ray disc recorders, digital cameras, and digital camcorders; business-use audiovisual (AV) equipment; notebook PCs; printers; security-related products comprising network cameras and POS system solutions; mobile phones; motors; car navigation systems, cameras, and digital terrestrial tuners. It also provides home appliances consisting of refrigerators, room air conditioners, washing machines and clothes dryers, and vacuum cleaners; and lighting and environmental systems, as well as components and devices for use in various products ranging from digital AV equipment, and information and communication devices to home appliances and industrial equipment; and offers electronic-parts-mounting machines, industrial robots, and industrial equipment. In addition, the company provides solar photovoltaic systems and rechargeable batteries; electrical supplies, electric products, and building materials and equipment; personal care products, such as massage sofa, men?s shavers, hair dryers, and vibration toothbrushes; EV relays, and back and corner sensors; living station modular kitchen systems; home appliance- and communications-use relays and printed circuit board materials, and factory-automation -related products; and solar power generation systems and all-electric home design fixtures. It serves consumer, industrial and business corporations, governments, and other institutions, such as electric and electronic equipment manufacturers, automotive manufacturers, and various machinery makers. The company was formerly known as Matsushita Electric Industrial Co., Ltd. and changed its name to Panasonic Corporation in October 2008. Panasonic Corporation is founded in 1918 and is based in Kadoma-shi, Japan.

Great Stocks In 2013:Sanmina-SCI Corporation (SANM)

 Sanmina-SCI Corporation provides integrated electronics manufacturing services worldwide. It offers product design and engineering services, including initial development, detailed design, prototyping, validation, preproduction, and manufacturing design; volume manufacturing of complete systems, components, and subassemblies; final system assembly and testing services; direct order fulfillment and logistics services; and after-market product service and support services. The company also manufactures various system components and subassemblies consisting of printed circuit boards, printed circuit board assemblies, backplanes and backplane assemblies, enclosures, cable assemblies, precision machine components, optical components and modules, and memory modules. It provides its services to original equipment manufacturers primarily in the communication, enterprise computing and storage, multimedia, industrial and semiconductor capital equipment, defense and aerospace, medical, clean technology, and automotive industries. The company was founded in 1980 and is based in San Jose, California.

Advisors' Opinion:

  • By Sam Collins At 2011-9-11

    Sanmina-SCI Corporation (NASDAQ: SANM ) is independent global provider of customized, integrated electronics manufacturing services. The stock has been in an intermediate downtrend since April, but recent accumulation and a host of buy recommendations from more than 20 analysts puts this stock back in the spotlight.

    SANM recently crossed over its 50-day moving average, and its stochastic flashed a buy. Since it is technically still in a downtrend, stop-loss orders at $10 should be entered. The average target of the fundamental analysts is $24, and S&P rates the stock a "five-star buy" with a 12-month target of $20.

Great Stocks In 2013:Envestnet Inc (ENV)

 Envestnet, Inc. provides technology-enabled, Web-based investment solutions and services to financial advisors. The company?s technology platform provides financial advisors with a series of integrated services, including risk assessment and selection of investment strategies, asset allocation models, research and due diligence, portfolio construction, proposal generation and paperwork preparation, model management and account rebalancing, account monitoring, customized fee billing, overlay services covering asset allocation, tax management and socially responsible investing, and aggregated multi-custodian performance reporting and communication tools, as well as access to a wide range of leading third-party asset custodians. It also offers Web-based access to a range of technology-enabled investment solutions, including separately managed accounts (SMAs), which allow advisors to offer their investor clients a managed portfolio of securities with a personalized tax basis; unified managed accounts (UMAs) that allow the advisor to use various types of investment vehicles in one account; advisor-directed portfolios, where advisors create, implement, and maintain their own investment portfolio models to address specific client needs; mutual funds and portfolios of exchange-traded funds (ETFs); and access to a range of investment managers and investment strategists. The company was founded in 1999 and is headquartered in Chicago, Illinois.

Advisors' Opinion:

  • By Harding At 2011-9-11

    Envestnet, Inc. is a provider of technology-enabled, Web-based investment solutions and services to financial advisors. The company’s integrated technology platform allows financial advisors to provide their clients with investment solutions and services. Its EPS forecast for the current year is 0.42 and next year is 0.69. According to consensus estimates, its topline is expected to grow 65.45% current year and 21.21% next y! ear. It is trading at a forward P/E of 19.16. Out of six analysts covering the company, five are positive and have buy recommendations and one has a hold rating.