Saturday, November 2, 2013

EMC Update - Numerous Billionaires Hold, Three Gurus Reduce in Third Quarter

Three billionaires reduced EMC Corporation (EMC) in the third quarter, but a large group of billionaires remains heavily invested in the global data storage company, and here's why. EMC has invested $17 billion in acquisitions in the last 10 years, integrating more than 70 technology companies to strengthen their core business and extend their reach to 86 countries. The company's revenue growth is 14.80% over 10 years and 6.70% over 12 months. EMC's EBITDA growth rate is 18.80% over 10 years and 5.40% over 12 months, and its book value growth is 9.50% over 10 years and 9.60% over 12 months, all based on annual rates per share. Furthermore, as a Fortune 500 company, EMC Corporation ranks 139th, and the company had its record revenue year in 2012, with reported revenue at $21.7 billion. EMC has around 400 sales offices and employs approximately 60,000 people worldwide.

EMC Corporation's third quarter update shows revenue increasing across four major global geographies, with strong revenue growth in Brazil, Russia, India and China (BRIC), representing around 40% of the world's population.

Here's a company update and a look at three gurus reducing in the third quarter of 2013.

EMC Corporation (EMC)

Predictability: 3 out of 5 Stars

Down 4% over 12 months, EMC Corporation, the data storage company, has a market cap of $50.38 billion; its shares were traded at around $24.21 with a P/E ratio of 19.40. The dividend yield is 0.80%.

Tracking EMC share price, revenue and net income since 1990:

[ Enlarge Image ]

Founded in 1979, EMC Corporation and its subsidiaries develop, deliver and support the information technology industry's range of information infrastructure and virtual infrastructure technologies and solutions. The company manages its business in two broad catego! ries: EMC Information Infrastructure and VMware Virtual Infrastructure.

The company's EMC Information Infrastructure segment provides a foundation for organizations to store, manage, protect, analyze and secure their vast and ever-increasing quantities of information, improve business agility, lower cost of ownership and enhance their competitive advantage within traditional data centers, virtual data centers and cloud-based IT infrastructures. EMC's VMware Virtual Infrastructure segment represents the company's majority equity stake in VMware Inc. and provides virtualization infrastructure solutions.

Third Quarter Financials: EMC Corporation reported financial results for the third quarter of 2013 with revenue up 5% at $5.5 billion compared to the same quarter of 2012. Net income for the quarter was $586 million (GAAP). The company reported $0.27 for earnings per weighted average diluted share for the third quarter of 2013. EMC's operating cash flow increased 25% over the same quarter of 2012. At the end of the third quarter 2013, EMC Corporation had $17.5 billion in cash and investments on the balance sheet.

Third Quarter Guru Action: As of Sept. 30, 2013, the top guru stakeholder Manning & Napier Advisors Inc. reduced its position by 1.44%, selling 440,059 shares at an average price of $25.97, for a loss of 6.6%.

Based on a five-year trading history, the firm bought a total of 44,512,835 shares at an average price of $19.05 per share, averaging a gain of 27%. Selling a total of 26,390,835 shares at an average price of $16.24, the firm averaged a gain of 49%.

Manning & Napier's highest gain was 130.8% in the fourth quarter of 2008 when the firm bought 5,779,587 shares at an average price of $10.51 per share.

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Current shares of 30,039,743 represent 1.44% of shares outstanding and comprise 3.6% of the firm�! �s total ! assets managed.

As of Sept. 30, 2013, Scott Black reduced his position by 3.72%, selling 16,930 shares at an average price of $25.97, for a loss of 6.7%.

Across six quarters of trading, Scott Black bought a total of 455,012 shares at an average price of $25.34 per share, averaging a loss of 4%. Selling a total of 16,930 shares at an average price of $25.97, he averaged a loss of 7%.

Current shares of 438,082 represent 0.02% of shares outstanding and comprise 1.3% of his total assets managed.

As of Sept. 30, 2013, Ken Fisher reduced his position by 17.15%, selling 9,846 shares at an average price of $25.97, also for a 6.7% loss.

Fisher's five-year history shows he averaged a gain of 31% buying a total of 4,764,205 shares at an average price of $18.44. Selling 25,567,801 shares at an average price of $24.39 per share, he had a loss of 1%.

Fisher's current shares are 47,561.

Check out the numerous gurus holding EMC and very active insider selling.

GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

If you are not a Premium Member, we invite you for a 7-day Free Trial.

Friday, November 1, 2013

Array - Loxo Collaborate - Analyst Blog

Top 5 Insurance Companies To Watch For 2014

Array BioPharma, Inc. (ARRY) and Loxo Oncology, Inc recently announced a license and collaboration agreement. The agreement involves a multi-year licensing and collaboration deal for a preclinical development candidate (discovered by Array) and related intellectual property. Loxo and Array will also collaborate for the discovery and development of small molecule drugs targeting novel oncology indications.

Array's preclinical research activities under the deal will be funded by Loxo. Loxo will select targets and carry out studies. The agreement makes Array eligible for milestone payments up to $434 million as well as royalties on sales of any drugs developed and commercialized under this deal. Array also received shares in Loxo.

This deal is in line with Array's strategy of focusing on oncology. Array has entered into several collaborations with big companies and amassed a total of $577.9 million in research funding and up-front and milestone payments from collaboration partners from inception till Jun 30, 2012.

The company has also been quite active in collaboration activities this year. In May 2013, Array entered into a collaboration agreement with Oncothyreon Inc. (ONTY) to develop and commercialize ARRY-380, which is being developed for the treatment of breast cancer. According to the agreement, Array will receive an upfront fee of $10 million on the initiation of the collaboration. Similar to the collaboration with Loxo, this agreement also includes the funding of clinical development by Oncothyreon.

Array is focused mainly on the development and commercialization of targeted small molecule drugs for the treatment of cancer patients. We note that it has graduated into a late-stage development company with a few candidates approaching phase III by the end of 2013.

The company recently initiated a phase III study (M! ILO: n=300) on MEK162 in patients suffering from low-grade serous ovarian cancer (LGSOC). It consequently received a $5 million milestone payment from partner, Novartis AG (NVS), following the initiation of the study.

Currently, Array BioPharma carries a Zacks Rank #2 (Buy). However, biopharma stocks such as Jazz Pharmaceuticals Public Limited Company (JAZZ) look more attractive with a Zacks Rank #1 (Strong Buy).



Thursday, October 31, 2013

Is Akamai Technologies a Worthwhile Investment?

With shares of Akamai Technologies (NASDAQ:AKAM) trading around $42, is AKAM an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Akamai Technologies provides content delivery and cloud infrastructure services for the delivery of content and applications over the Internet. The company's solutions range from delivery of conventional content on websites, to tools that support the delivery and operation of cloud-based applications, to live and on-demand streaming video capabilities all designed to help its customers interact with people accessing the Internet from myriad devices and locations around the world.

The company offers five solutions designed to meet the online business needs of its customers: Terra, Aqua, Sola, Kona and Aura. Cloud computing and infrastructure are a relatively new technology that is being adopted by major companies at an increasing rate. This technology is still in its early stages of adoption in the United States and as companies worldwide begin to harness its power, Akamai Technologies stands to see explosive profits. Through its solutions, Akamai Technologies will continue to provide innovative products to businesses participating in a multitude of growing industries around the world.

T = Technicals on the Stock Chart are Strong

Akamai Technologies stock has seen a solid uptrend over the last couple of years. Currently, the stock is getting reading to see 52-week highs on positive earnings news. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Akamai Technologies is trading above its rising key averages which signal neutral to bullish price action in the near-term.

AKAM

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(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Akamai Technologies options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Akamai Technologies Options

27%

0%

0%

What does this mean? This means that investors or traders are buying a very small amount of call and put options contracts, as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

May Options

Flat

Average

June Options

Flat

Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a very small amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion…

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Akamai Technologies’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Akamai Technologies look like and more importantly, how did the markets like these numbers?

2013 Q1

2012 Q4

2012 Q3

2012 Q2

Earnings Growth (Y-O-Y)

24.39%

14.40%

17.39%

-4%

Revenue Growth (Y-O-Y)

16.72%

22.51%

19.61%

15.76%

Earnings Reaction

19.42%

-15.19%

6.72%

24.03%

Akamai Technologies has seen increasing earnings and revenue figures over the last four quarters. From these figures, the markets have been mostly pleased with Akamai Technologies’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Akamai Technologies stock done relative to its peers, Level 3 Communications (NYSE:LVLT), Limelight Networks (NASDAQ:LLNW), Internap Network Services (NASDAQ:INAP), and sector?

Akamai Technologies

Level 3 Communications

Limelight Networks

Internap Network Services

Sector

Year-to-Date Return

4.35%

-11.38%

-11.71%

19.48%

14.08%

Akamai Technologies has been an average performer, year-to-date.

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Conclusion

Akamai Technologies provides technology products and services to a growing user base in a number of industries around the world. The stock has been performing well in recent years and looks to be getting ready to see higher prices. Earnings and revenue numbers have been shows excellent signs of growth which has really pleased investors. Relative to its strong peers and sector, Akamai Technologies has been an average year-to-date performer. Look for Akamai Technologies to continue to OUTPERFORM.

Wednesday, October 30, 2013

The Most Unfair Countries For Women

By many measures, the United States is the wealthiest economy in the world. However, according to a recent survey, women do not benefit nearly as much as men. The U.S. ranked 23rd in the world for gender equality, behind countries including South Africa, Cuba, and the Philippines.

The World Economic Forum (WEF) report, the 2013 Global Gender Gap Report, measured the disparities between men and women in 136 countries. In the nations that scored the worst, economic and educational opportunities, as well as political representation and health outcomes, were far worse for women than for men. According to the report, Iceland was the best country for gender equality, while Yemen was the worst. 24/7 Wall St. reviewed the 10 nations with the worst gender-based inequality.

Click here to see the Most Unfair Countries For Women

The world's worst countries for gender inequality consistently failed to provide the same education opportunities for women that were available for men. Five of these nations were among the bottom 10 countries measured for equality of educational attainment.

According to the most recently available data, just 49% of Yemeni women and 40% of Pakistani women were literate, compared to 82% and 69% of men, respectively. Last year, the Pakistani Taliban shot teenager Malala Yousafzai for actively promoting girls' right to an education. She survived and was nominated for this year's Nobel Peace Prize for her activism.

Women in countries with extreme gender inequality frequently also lack representation in political office. Women accounted for at least 20% of parliament in only three of the 10 worst nations. In Yemen, there are no female members of parliament. Only one of these nations, Pakistan, has had a female head of state in the last 50 years. Pakistan's former prime minister, Benazir Bhutto — the sole woman to lead any of these countries — was assassinated in 2007.

While the rank is based on the inequality between men and women, the nations also tended to among the worst countries for women overall. Nine of them had among the world's worst labor force participation rates. Similarly, in half of the nations more than half of all women were illiterate, according to the latest available data.

24/7 Wall St. reviewed the 10 nations that received the worst score in the World Economic Forum's 2013 Global Gender Gap Report. Each country was graded based on its score in four key areas: economic participation and opportunity; educational attainment; health and survival; and political empowerment. Countries scored worse by each measure when the gap between men and women for that measure was the widest. For example, women in Yemen do not have the lowest literacy rate in the world, but the gap between men and women by that measure is the widest, so Yemen received the lowest score for literacy. At the time the WEF produced their study all figures represented the most recently available data.

These are the most unfair countries for women.

5 Stocks Spiking on Unusual Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Stocks Set to Soar on Bullish Earnings

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Stocks Ready to Break Out

With that in mind, let's take a look at several stocks rising on unusual volume today.

CaesarStone Sdot-Yam

CaesarStone Sdot-Yam (CSTE) manufactures engineered quartz surfaces. This stock closed up 2.5% at $43.73 in Monday's trading session.

Monday's Volume: 456,000

Three-Month Average Volume: 284,725

Volume % Change: 94%

>>5 Rocket Stocks to Buy This Week

From a technical perspective, CSTE spiked higher here right off its 50-day moving average of $42.33 with above-average volume. This bump higher is a continuation pattern of CSTE's recent move out of its downtrend that started in late September at $48.69 to its low of $36.26. That low of $36.26 was the end of CSTE's recent downside volatility. Shares of CSTE now look ready to continue its trend higher and potentially challenge its all-time highs.

Traders should now look for long-biased trades in CSTE as long as it's trending above its 50-day at $42.33 or above $42 and then once it sustains a move or close above Monday's high of $44.74 with volume that's near or above 284,725 shares. If we get that move soon, then CSTE will set up to re-test or possibly take out its all-time high at $48.69. Any high-volume move above that level will then give CSTE a chance to tag $50 to $53.

On Assignment

On Assignment (ASGN), a diversified professional staffing firm, provides short- and long-term placement of contract, contract-to-hire, and direct hire professionals in the U.S., Europe, Canada, China, Australia and New Zealand. This stock closed up 2.7% at $34.23 in Monday's trading session.

Monday's Volume: 446,000

Three-Month Average Volume: 347,663

Volume % Change: 50%

>>5 Stocks Under $10 Set to Soar

From a technical perspective, ASGN spiked higher here right above its 50-day moving average of $32.41 with above-average volume. This stock has been uptrending strong for the last six months, with shares soaring higher from its low of $22.88 to its recent high of $35.07. During that uptrend, shares of ASGN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ASGN within range of triggering a big breakout trade. That trade will hit if ASGN manages to take out Monday's high of $34.34 to its 52-week high at $35.07 with high volume.

Traders should now look for long-biased trades in ASGN as long as it's trending above its 50-day at $32.41 and then once it sustains a move or close above those breakout levels with volume that's near or above 347,663 shares. If that breakout hits soon, then ASGN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $40 to $43.

Bloomin Brands

Bloomin Brands (BLMN) operates as a casual dining restaurant business. This stock closed up 2.8% at $24.16 in Monday's trading session.

Monday's Volume: 765,000

Three-Month Average Volume: 575,388

Volume % Change: 50%

>>5 Big Stocks to Trade for Big Gains

From a technical perspective, BLMN spiked higher here and broke out above some near-term overhead resistance at $23.98 with above-average volume. This move is quickly pushing shares of BLMN within range of triggering another near-term breakout trade. That trade will hit if BLMN manages to take out some key overhead resistance levels at $24.65 to $25.49 with high volume.

Traders should now look for long-biased trades in BLMN as long as it's trending above Monday's low of $23.28 or above its 50-day at $22.94 and then once it sustains a move or close above those breakout levels with volume that's near or above 575,388 shares. If that breakout hits soon, then BLMN will set up to re-test or possibly take out its 52-week high at $26.71. Any high-volume move above that level will give BLMN a chance to tag $30.

Cardinal Health

Cardinal Health (CAH) is a health care services company providing products and services that help pharmacies, hospitals, surgery centers, physician offices and other health care providers. This stock closed up 1% at $55.55 in Monday's trading session.

Monday's Volume: 5.44 million

Three-Month Average Volume: 2.11 million

Volume % Change: 125%

>>3 Hot Stocks on Traders' Radars

From a technical perspective, CAH spiked modestly higher here right above some near-term support levels at $55 to $54.34 with solid upside volume. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $45.04 to its recent high of $56.78. During that uptrend, shares of CAH have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CAH within range of triggering a near-term breakout trade. That trade will hit if CAH manages to take out Monday's high of $56.64 to its 52-week high at $56.78 with high volume.

Traders should now look for long-biased trades in CAH as long as it's trending above support at $55 or above $54.34 and then once it sustains a move or close above those breakout levels with volume that's near or above 2.11 million shares. If that breakout hits soon, then CAH will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $64 to $65.

Epizyme

Epizyme (EPZM) is a clinical-stage biopharmaceutical company that discovers, develops and plans to commercialize personalized therapeutics for patients with genetically defined cancers. This stock closed up 2.4% at $40 in Monday's trading session.

Monday's Volume: 203,000

Three-Month Average Volume: 129,742

Volume % Change: 50%

From a technical perspective, EPZM trended higher here with above-average volume. This move is quickly pushing shares of EPZM within range of triggering a major breakout trade. That trade will hit if EPZM manages to take out some near-term overhead resistance at $42.71 to its all-time high at $45.72 with high volume.

Traders should now look for long-biased trades in EPZM as long as it's trending above some near-term support at $37.50, and then once it sustains a move or close above those breakout levels with volume that's near or above 129,742 shares. If that breakout hits soon, then EPZM will set up to enter new all-time high territory above $45.72, which is bullish technical price action. Some possible upside targets off that move are $50 to $53.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>4 Stocks Under $10 Making Big Moves



>>Own Gold? Get Rid of It!



>>4 Big Stocks to Trade (or Not)

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


Tuesday, October 29, 2013

Will Verizon Continue To Rise?

With shares of Verizon (NYSE:VZ) trading around $51, is VZ an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Verizon is a provider of communications, information and entertainment products and services to consumers, businesses and governmental agencies. It operates in two primary segments: Verizon Wireless and Wireline. Verizon Wireless's communications products and services include wireless voice and data services and equipment sales, which are provided to consumer, business and government customers across the United States. Wireline's communications products and services include voice, Internet access, broadband video and data, Internet protocol network services, network access, long distance, and other services. As consumers and companies strive to communicate at increasing rates, Verizon stands to see a rising profits as a main provider. Look for rising communications, information, and entertainment to drive profits for Verizon.

T = Technicals on the Stock Chart are Strong

Verizon stock has witnessed a bullish run over most of the last few years. The stock has pulled-back after this run so it may need a bit more time before initiating its next move. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Verizon is trading between its rising key averages which signal neutral to bullish price action in the near-term.

VZ

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of Verizon options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Verizon Options

21.50%

23%

21%

What does this mean? This means that investors or traders are buying a small amount of call and put options contracts, as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

July Options

Flat

Average

August Options

Flat

Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a small amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Verizon’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Verizon look like and more importantly, how did the markets like these numbers?

2013 Q1

2012 Q4

2012 Q3

2012 Q2

Earnings Growth (Y-O-Y)

15.25%

-107.21%

14.29%

12.28%

Revenue Growth (Y-O-Y)

4.17%

5.66%

3.92%

3.69%

Earnings Reaction

2.76%

0.58%

2.37%

-2.94%

Verizon has seen mostly increasing earnings and revenue figures over the last four quarters. From these numbers, the markets have been pleased with Verizon’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Verizon stock done relative to its peers, AT&T (NYSE:T), Sprint Nextel (NYSE:S), T-Mobile (NYSE:TMUS), and sector?

Verizon

AT&T

Sprint Nextel

T-Mobile

Sector

Year-to-Date Return

17.84%

5.64%

26.81%

15.95%

16.03%

Verizon has been a relative performance leader, year-to-date.

Conclusion

Verizon provides communications products and services through a variety of mediums to consumers and companies around the world. The stock has been on a strong move higher but is now digesting gains so it may need some time. Over the last four quarters, investors in the company have been pleased as earnings and revenue figures have been rising. Relative to its peers and sector, Verizon has been a year-to-date performance leader. Look for Verizon to OUTPERFORM.

Monday, October 28, 2013

How Are IAC̢۪s Websites Performing?

With shares of IAC/InterActiveCorp (NASDAQ:IACI) trading at around $49.78, is IACI an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock's Movement

IAC was written about in our newsletter on March 8, 2013 and rated an OUTPERFORM. At that time, the stock was trading at $43.57. Therefore, it would have been a good investment. However, is that still the case today?

IAC impressed last quarter with a year-over-year revenue increase of 15.90 percent, and a year-over-year earnings increase of 55.60 percent. On a larger scale, revenue has consistently improved on an annual basis, and earnings have made tremendous improvements since 2008 and 2009. Earnings did drop in 2012, but this shouldn't be cause for concern. IAC is in a much better place than it was several years ago. It's now more strategic when it comes to acquisitions and capital allocation.

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IAC is trading at 26 times earnings, which is higher than the industry average of 22 times earnings. However, margins are respectable. Profit margin is 6.15 percent, and operating margin is 12.19 percent. IAC does yield 1.90 percent, which is a nice bonus, especially considering peers like AOL (NYSE:AOL) and Yahoo! (NASDAQ:YHOO) don't offer any yield.

IAC does have an 8.80 percent short position. This doesn't add up considering the fundamentals. However, this isn't the type of stock that would hold up well if the market were to falter. Many bears out there are shorting expensive stocks in anticipation of a market correction. It's not likely that the majority of these shorts are going after IAC for other reasons. After all, IAC has delivered consistent profits, top-line growth is good on an annual basis, the brand portfolio is highly diversified, monetization methods are effective, the balance sheet is healthy, there is international growth potential, and the Internet is still growing in regards to popularity. Furthermore, analysts like the stock: 14 Buy, 3 Hold, 1 Underperform.

The company culture at IAC is subpar. According to Glassdoor.com, employees have rated their employer a 2.9 of 5, and only 49 percent of employees would recommend the company to a friend. That said, there is an enormous disconnect here. Despite those poor numbers, an impressive 86 percent of employees approve of CEO Greg Blatt. It looks as though leadership is good, but there are problems on lower management levels.

Now for the fun part. Let's see how well some of IAC's sites are performing.

 

The information below is based on stats from Alexa.com.

Ask.com

Global Rank: 27

U.S. Rank: 19

Pageviews-Per-User (past three months): Up 13.7 percent

Time-On-Site: Up 5 percent

Bounce Rate (only one pageview per visit): Down 2 percent

 

About.com

Global Rank: 85

U.S. Rank: 36

Pageviews-Per-User (past three months): Down 0.87 percent

Time-On-Site: Down 3 percent

Bounce Rate (only one pageview per visit): Up 1 percent

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OKCupid.com

Global Rank: 693

U.S. Rank: 189

Pageviews-Per-User (past three months): Down 0.96 percent

Time-On-Site: Down 2 percent

Bounce Rate (only one pageview per visit): Up 16 percent

 

Tutor.com

Global Rank: 88,437

U.S. Rank: 23,898

Pageviews-Per-User (past three months): Up 9 percent

Time-On-Site: Down 5 percent

Bounce Rate (only one pageview per visit): Down 6 percent

 

CollegeHumor.com

Global Rank: 3,309

U.S. Rank: 1,458

Pageviews-Per-User (past three months): Down 13.87 percent

Time-On-Site: Down 11 percent

Bounce Rate (only one pageview per visit): Up 12 percent

 

CitySearch.com

Global Rank: 3,507

U.S. Rank: 1,002

Pageviews-Per-User (past three months): Up 8.0 percent

Time-On-Site: Up 8 percent

Bounce Rate (only one pageview per visit): Down 3 percent

 

Urbanspoon.com

Global Rank: 2,155

U.S. Rank: 636

Pageviews-Per-User (past three months): Down 0.89 percent

Time-On-Site: Even

Bounce Rate (only one pageview per visit): Up 1 percent

 

DailyBurn.com

Global Rank: 28,115

U.S. Rank: 8,666

Pageviews-Per-User (past three months): Down 8.79 percent

Time-On-Site: Down 8 percent

Bounce Rate (only one pageview per visit): Down 2 percent

 

Chemistry.com

Global Rank: 7,648

U.S. Rank: 1,371

Pageviews-Per-User (past three months): Up 19 percent

Time-On-Site: Up 9 percent

Bounce Rate (only one pageview per visit): Up 9 percent

 

Vimeo.com

Global Rank: 140

U.S. Rank: 112

Pageviews-Per-User (past three months): Down 2.19 percent

Time-On-Site: Down 3 percent

Bounce Rate (only one pageview per visit): Up 3 percent

 

 

Match.com

Global Rank: 356

U.S. Rank: 92

Pageviews-Per-User (past three months): Down 7.09 percent

Time-On-Site: Down 8 percent

Bounce Rate (only one pageview per visit): Up 11 percent

 

 

Shoebuy.com

Global Rank: 6,700

U.S. Rank: 1,481

Pageviews-Per-User (past three months): Down 1.31 percent

Time-On-Site: Down 4 percent

Bounce Rate (only one pageview per visit): Up 3 percent

 

Overall, website performance is average. There haven't been many significant changes in either direction.

Let's take a look at some more important numbers prior to forming an opinion on this stock.

T = Technicals Are Strong

IAC has performed well over the past three years. Is this trend likely to continue?

1 Month Year-To-Date 1 Year 3 Year
IACI 2.34% 6.49% 13.73% 120.4%
AOL -9.98% 18.74% 52.01% 94.07%
YHOO -1.60% 32.66% 72.55% 72.66%

At $49.78, IAC is trading above its averages.

50-Day SMA 48.95
200-Day SMA 45.04
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E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for IAC is normal. Debt isn’t a concern.

Debt-To-Equity Cash Long-Term Debt
IACI 0.33 679.57M 580.00M
AOL 0.05 467.80M 104.20M
YHOO 0.00 3.01B 36.00M

E = Earnings Have Been Steady

Earnings have substantially improved over the past several years. However, there was a slight setback in 2012. Revenue has improved over the past three years.

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,445 1,376 1,637 2,059 2,801
Diluted EPS ($) -1.09 -7.06 0.94 1.85 1.71

Looking at the last quarter on a year-over-year basis, revenue and earnings improved.

Quarter Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 640.60 680.61 714.47 765.25 742.25
Diluted EPS ($) 0.38 0.47 0.43 0.43 0.61

Now let's take a look at the next page for the Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?

Conclusion

IAC isn't the most loved company on the street, which is evidenced by that 8.80 percent short position. However, IAC continues to deliver on the top and bottom lines. As long as that remains to be the case, IAC is an OUTPERFORM.

3 Stocks Under $10 in Breakout Territory

 DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.

Yanzhou Coal Mining

Yanzhou Coal Mining (YZC) engages in the underground coal mining, as well as preparation, processing, sale and railway transportation of coal. This stock closed up 7.6% to $7.31 in Thursday's trading session.

Thursday's Range: $7.14-$7.31

52-Week Range: $6.68-$18.57

Thursday's Volume: 391,000

Three-Month Average Volume: 370,383

From a technical perspective, YZC bounced sharply higher here right off some near-term support at $6.77 with above-average volume. This stock has been downtrending badly for the last six months, with shares plunging from its high of over $14 to its recent low of $6.68. During that move, shares of YZC have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of YZC have recently formed a double bottom chart pattern at $6.68 to $6.77. This stock now looks ready to reverse that downtrend and possibly trigger a near-term breakout trade. That trade will hit if YZC manages to take out some near-term overhead resistance levels at $7.76 to $8 with high volume.

Traders should now look for long-biased trades in YZC as long as it's trending above its recent low of $6.77 and then once it sustains a move or close above those breakout levels with volume that hits near or above 370,383 shares. If that breakout triggers soon, then YZC will set up to re-test or possibly take out its next major overhead resistance levels at $9 to $10. Any high-volume move above those levels will then give YZC a chance to tag its next major overhead resistance levels at $10.67 to $11.11.

Central European Media Enterprises

Central European Media Enterprises (CETV) is a media and entertainment company that operates broadcast, content and new media businesses in central and Eastern Europe. This stock closed up 5.1% to $3.68 in Thursday's trading session.

Thursday's Range: $3.50-$3.80

52-Week Range: $2.60-$7.92

Thursday's Volume: 365,000

Three-Month Average Volume: 741,458

From a technical perspective, CETV bounced sharply higher here right off its 50-day moving average of $3.42 with lighter-than-average volume. This move is quickly pushing shares of CETV within range of triggering a major breakout trade. That trade will hit if CETV manages to take out some near-term overhead resistance levels at $3.79 to $3.89 with high volume.

Traders should now look for long-biased trades in CETV as long as it's trending above its 50-day at $3.42 or above more near-term support at $3.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 741,458 shares. If that breakout hits soon, then CETV will set up to re-test or possibly take out its next major overhead resistance levels at $4.45 to $4.68. Any high-volume move above those levels will then put its next major overhead resistance levels at $5 to $5.25 into range for shares of CETV.

1-800 Flowers.com

1-800 Flowers.com (FLWS) provides customers with fresh flowers and the finest selection of plants, gift baskets, gourmet foods, confections, balloons and plush stuffed animals perfect for every occasion. This stock closed up 4.7% to $6.80 in Thursday's trading session.

Thursday's Range: $6.52-$6.87

52-Week Range: $2.77-$7.17

Thursday's Volume: 81,000

Three-Month Average Volume: 153,606

From a technical perspective, FLWS trended up here right above its 50-day moving average at $6.35 with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $6.48 to $6.45, after pulling back from its recent 52-week high at $7.17. Shares of FLWS are now starting to move within range of triggering a major breakout trade. That trade will hit if FLWS manages to take out some near-term overhead resistance levels at $6.99 to its 52-week high at $7.17 with high volume.

Traders should now look for long-biased trades in FLWS as long as it's trending above its 50-day at $6.35 and then once it sustains a move or close above those breakout levels with volume that hits near or above 153,606 shares. If that breakout hits soon, then FLWS will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $8 to $9.

To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Ways to Protect Yourself and Your Portfolio

Top Gold Stocks To Watch For 2014

Often, when faced with significant losses, some investors become rattled and shaken, maybe even frightened away from investing entirely, but now Norman Rothery of Globe Investor has some possible ways to protect yourself and your portfolio.

The sharp smell of singed electronics reminds me of a conversation I had, in a physics lab, while fixing a distressed piece of equipment. My colleague and I talked about his encounters with the stock market and the fact that his portfolio was also in dire need of a tune-up.

He first got into the market in the mid-1980s after stocks had advanced smartly. But his resolve was tested in late 1987 when the S&P 500 suddenly lost just over 20%, on what became known as Black Monday. The plunge scared him out of stocks.

But the 1987 crash turned out to be a temporary blip in a much longer bull market. These days, it's easy to wonder what the big deal was all about, even though the crash was quite worrisome at the time.

Despite his losses, he returned to stocks after they recovered. Alas, once again, his timing wasn't great because he sold shortly after the recession hit in the early 1990s.

His unfortunate tale is hardly unique and many others have experienced similar bouts of poor timing in more recent times. It's a pattern that can be seen in the difference between mutual fund returns and the returns earned by mutual fund investors.

Mutual funds report performance figures based on the assumption that an investor puts all of their money into the fund at once. The money is then left there untouched and any distributions are reinvested. Technically speaking, fund returns are time-weighted returns.

However, most people put money into a fund, and take it out, in a lumpy fashion over time. Such changes must be taken into account when calculating the returns for an individual investor.

Similarly, to get a sense of how a fund's investors have done over all, it is important to take into account all of the cash flows into, and out of, the fund. Doing so results in what I'll call investor returns.

The difference between fund returns and investor returns is a measure of how well investors have timed their buying and selling.

Morningstar looked at the timing issue by studying funds offered in the United States over the decade ending Dec. 31, 2009. The results were not pleasant.

Consider the plight of technology funds, which fared particularly poorly after the Internet bubble collapsed in the early 2000s. As a group, they posted average annual losses of 6.9%.

But much like my hapless colleague, investors in those funds fared even worse with losses of 10.9% annually. Bad timing cost them an additional four percentage points a year.

The decade was hard on most stocks and the average US stock fund posted positive annual returns of only 1.6%. However, the average investor experience was even worse. They picked up gains of only 0.2% annually.

Given the large difference in results, it makes sense to look for ways to help shield investors from their own poor timing habits. It's a thorny problem that is hard to resolve completely. One potential solution comes in the form of the humble low-fee balanced fund.

Such funds hold a diversified mix of stocks and bonds. The combination tends to provide investors with a smoother ride and hopefully a little extra in the way of returns along the way.

According to Morningstar, investors seem to do well in balanced funds. On average the funds gained 2.7% annually over the difficult decade and their investors fared even better with annual gains of 3.4%.

Balanced funds offer something of a behavioral shield.

By packaging together both stocks and bonds, they help to conceal the volatility of their underlying components. It's a subtle point that reveals itself when you think about the experience of two investors who ultimately hold the same portfolio.

The first owns a low-fee balanced index fund.

The second owns a collection of individual index funds that, in total, mimic the balanced fund in all respects. While their portfolios will yield the same amount of money, they may not feel the same way about their investments.

The person holding the collection of funds will likely have a few that will lose money in any particular year. But losses tend to be quite painful, even if they're offset by gains elsewhere. They also have a nasty tendency of tempting investors to shuffle their money out of past losers and into past winners.

On the other hand, the balanced fund investor hides such disappointments from themselves. Instead they keep a firm eye on their overall performance and expose themselves to less timing temptation.

While balanced funds aren't a cure-all for the ails of market timing, they do represent a useful tool for new investors and for those who get a little jittery in downturns.

When shopping for balanced funds, it is important to keep a close eye on the fees they charge. All too many funds offered to Canadians charge outrageously high fees. Some wrap programs (close cousins to balanced funds) are notoriously expensive and tend to be sold to, shall we say, less knowledgeable investors.

To help your search, I've listed some of the best low-fee balanced funds in the accompanying table along with a few details on each fund. The table shows their annual fees (or management expense ratio) and roughly how much they invest in stocks and bonds. I've also indicated whether the fund actively picks stocks or passively follows market indexes.

Balanced funds are simple, and a little boring, but they represent solid investment options.

If I were back in the lab today, I'd suggest the low-fee balanced approach as a way to repair my colleague's broken portfolio.

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Read more from the Globe and Mail here…

Sunday, October 27, 2013

On the Job: Questions can reveal a lot about a …

An interview can be a nerve-wracking experience.

The job seeker feels pressure to answer questions and make a good impression.

COLUMN: Ask right questions in an interview
COLUMN: Ask right questions to get job you want

But career experts say interviews need to be two-way streets if job seekers want to make sure they won't hate their new jobs in six months.

Specifically, job candidates must be armed with questions to really learn what an organization is all about. They've got to ferret out information that can help them avoid a boss who channels Attila the Hun or land in an organization that is a poster child for dysfunctional companies.

"People think an interview is when they have to sell themselves," says Alexandra Levit, co-founder of the Career Advisory Board. "But I think it's also a time to ask questions and find out more about the employer."

You should ask to talk to other employees who would be colleagues if a job is offered, Levit says.

"Ask them questions about what sets the organization apart, what they really like about the company and their jobs," she says.

Companies are likely to offer "rah-rah" employees who will say only good things about the employer, but Levit says they still can offer valuable information.

If you're speaking with a hiring manager whose legs are crossed, pay attention to the foot on top. If it's angled toward you, that's a positive sign.(Photo: Getty Images, iStockphoto)

Carol Kinsey Goman, a business coach and expert on non-verbal communication, agrees.

You should look at what employees aren't saying with words but indicating with their body language, she says.

"Probably the biggest mistake people make when trying to read body ! language is that they take one signal for having a ton of meaning," she says. "But what you want to do is look for a cluster of signals."

A hiring manager looking at her watch doesn't necessarily signal that she wants an interview to conclude because she thinks you're boring. But if she begins tapping her foot, looking at the door and glancing at her watch, you should move on because you could be making her impatient or bored, Goman says.

Engage in small talk during an interview because hiring managers can gauge your "likeability" and see how you might fit into the workplace culture. But this chit-chat is also a chance for interviewees to get a feel for a company's culture and management style.

You'll also have opportunity to spot when an interviewer is being less than honest or masking true feelings about you and what you're saying.

Specifically, to spot a hiring manager who may be hiding something or being evasive, Goman advises you to look down. Most people are savvy enough to cover evasions with smiles or eye contact, but they forget about their feet.

STORY: 13 tips for nailing a Skype interview
STORY: 10 steps to a successful interview

Feet?

When people try to control their body language, Goman says they focus most with their face, hands and arms, but "gestures below the waist are often left unrehearsed."

Watch for these examples, Goman says:

• If you're speaking with a hiring manager who has his or her legs crossed, pay attention to the foot on top.

If it's angled toward you, that means the manager is interested in you. If the top leg and toe are pointed away from you, the person may be withdrawing.

• If you're in a negotiation and you notice a lot of foot-jiggling, or rocking back on feet and raising toes, the manager doing it probably feels he has the upper hand.

• If a colleague angles only her upper body toward you but keeps her legs and feet shifted away, she is telling you she wants to leave.

"You may not ! know it, ! but you've been reacting to foot gestures all your life," Goman says. "Next time you want to know what someone's thinking, take a closer look at their feet."

That way, if you don't like what you're hearing and observing non-verbally, your feet can take you to a better opportunity.

Anita Bruzzese is author of 45 Things You Do That Drive Your Boss Crazy ... and How to Avoid Them, www.45things.com. Twitter: @AnitaBruzzese.