Friday, May 16, 2014

This Stock Is Worth Investing In

Macroeconomic conditions have been quite harsh on retailers. Factors such as severe weather conditions and a shift in Easter have kept customers away from malls and other retail stores, resulting in loss of sales. As a result, footwear retailers have posted dismal results for the holiday quarter. However, there is an exception to this. Skechers USA (SKX) has been a great performer and its holiday quarter delivered strong numbers, bucking the industry wide trend. Its results beat analysts' expectations, leading to a sharp increase in its stock price.

Results Thereof

Revenue surged 23% over last year's quarter, clocking in at $546.5 million. Higher demand for its products led to an increase in sales. Both the wholesale and the retail segment registered a growth of 20.7% and 15.9%, respectively. Wholesale segment witnessed an increase in sales as all the categories, including men, women and kids division, moved north. This resulted in a jump of 14.8% in the number of products shipped. Also, a rise of 5% in average unit price pushed revenue higher.

On the retail front, net sales climbed 15.9% as the company opened 10 new stores during the quarter. Also, it registered same store sales growth of 5.8%. Within the retail segment, international region performed better with a 48.8% increase in sales. However, even domestic sales increased by 10.7%. Hence, the company is doing extremely well in the retail segment also.

Top 5 Safest Stocks To Own Right Now

Overall Skechers is experiencing a great demand in the International space. In fact, total revenue from its international business jumped 26.3%, which highlights the company's popularity in such markets.

The footwear company registered an expansion of 130 basis points in its gross margin for the quarter. This expansion was driven by favorable product mix as well as higher sales. Skechers' bottom line was the best part about its earnings. Earnings grew four times to $0.61 per share as against $0.13 per share in the prior year. The earnings were far ahead of the estimate of $0.33 per share. The retailer's cost management techniques were quite impressive which, coupled with the higher top line, led to an increase in profits.

How About the Competitors?

Skechers has also been able to outpace its peers such as Wolverine World Wide (WWW) and Crocs (CROX). Skechers has provided a return of 88.8%, in terms of stock price appreciation, in the last year. On the other hand, Wolverine World Wide's stock price dropped by 1.1% and Crocs' price declined 15.1%. This highlights Skechers' attractiveness and its outperformance against its peers.

Moreover, both the peers' holiday quarter results were not up to the mark. In fact, Crocs was the worst performer with flat top line and lower bottom line over the previous year. The retailer's sales were hampered by aforementioned factors such as colder winters and shift in Easter. Also, it was unable to manage its costs efficiently.

Even Wolverine posted a drop in its revenue of 2.8% over the last year wherein lower store traffic hampered sales. However, the retailer managed to post an increase of 20% in its earnings, clocking in at $0.36 per share.

Conclusion

Skechers' efforts into new products and higher promotions have been paying off. Skechers' plans to continue to develop new products should delight its customers. Also, increased TV commercials are helping the footwear company in driving sales higher. Moreover, it is one of the best performing companies among its peers and has been quite rewarding to investors. Hence, prudent investors should grab this opportunity in order to maximize gains.

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Wednesday, May 14, 2014

Top 5 Gas Utility Stocks To Watch Right Now

At the start of 2013, investors were worried about the uncertain U.S. and Chinese economies, about the prospect of a withdrawal of Federal Reserve stimulus and about signs stocks were getting overpriced. The Dow Jones Industrial Average responded with an 11% gain at this time last year, on its way to a 26% full-year binge.

Now, investors are worried about pretty much the same things. And the Dow? It is down 3% this year.

Why the big shift in stock performance? Although it doesn�� look like it on the surface, investors and analysts think some basic things are changing. Many see 2013 as an exceptional year, not a harbinger of things to come. Even if stocks finish 2014 with gains, a growing number expect indexes to endure a pullback of more than 10% at some point.

Top 5 Gas Utility Stocks To Watch Right Now: Mercury Computer Systems(MRCY)

Mercury Computer Systems, Inc. designs, manufactures, and markets high-performance embedded, real-time digital signal and image processing systems and software for specialized defense and commercial computing markets. The company operates in two segments, Advanced Computing Solutions (ACS) and Mercury Federal Systems (MFS). The ACS segment provides high-performance computing solutions, such as single board computers, digital signal processors, and integrated subsystems to the aerospace and defense, semiconductor, and commercial computing markets. This segment also provides microwave sub-assemblies to address needs in EW, SIGINT, ELINT, and high bandwidth communications subsystems; and software and customized design services for military and commercial applications. The MFS segment focuses on services and support work with the Department of Defense and federal intelligence and homeland security agencies, including designing and engineering intelligence, surveillance, and re connaissance (ISR) capabilities to address threats to the U.S. forces. It offers a range of engineering architecture and design services that enable clients to deploy computing capabilities for ISR systems on an accelerated time cycle. The company has operations in the United States, Europe, and the Asia Pacific. The company was founded in 1981 and is headquartered in Chelmsford, Massachusetts.

Advisors' Opinion:
  • [By CRWE]

    Mercury Computer Systems, Inc. (Nasdaq:MRCY), a best-of-breed provider of commercially developed, open sensor and Big Data processing systems for critical commercial, defense and intelligence applications, reported it had received a $2.2M purchase order relating to an airborne radar application for fighter aircraft.

Top 5 Gas Utility Stocks To Watch Right Now: First Industrial Realty Trust Inc (FR)

First Industrial Realty Trust, Inc. is a real estate investment trust (REIT). The Company is a self-administered and fully integrated real estate company, which owns, manages, acquires, sells, develops and redevelops industrial real estate. It is engaged in the acquisition of individual properties, as well as multi-property portfolios. As of December 31, 2011, its in-service portfolio consisted of 354 light industrial properties, 113 R&D/flex properties, 159 bulk warehouse properties, 105 regional warehouse properties, and eight manufacturing properties containing approximately 68.6 million square feet of gross leasable area (GLA) located in 26 states in the United States and one province in Canada. The Company�� in-service portfolio includes all properties other than developed, redeveloped and acquired properties that have not reached stabilized occupancy (generally defined as properties that are 90% leased).

As of December 31, 2011, it also owned noncontrolling equity interests in, and provided various services to, two joint ventures. The Company�� interests in its properties and land parcels are held through partnerships, corporations, and limited liability companies controlled, directly or indirectly, by the Company, including the Operating Partnership, of which it is the sole general partner with an approximate 94.3% interests as of December 31, 2011. During the year ended December 31, 2011, the Company acquired one industrial property consisting of approximately 0.7 million square feet of GLA in connection with the purchase of the 85% interest in one property. The Company generates revenue primarily from rental income and tenant recoveries from long-term (generally three to six years) operating leases of its industrial properties. It also generates income from the sale of its properties.

As of December 31, 2011, the Non-Strategic Assets consisted of 133 industrial properties, including approximately 11.3 million square feet of GLA, and land parcels of approximatel! y 359 gross acres. As of December 31, 2011, the Company owned 739 in-service industrial properties containing approximately 66.3 million square feet of GLA. During 2011, the Company owned 739 in-service industrial properties containing an aggregate of approximately 66.3 million square feet of GLA in 26 states of the United States, and one province in Canada, with a diverse base of approximately 1,900 tenants engaged in a variety of businesses, including manufacturing, retail, wholesale. During 2011, the Company sold 36 industrial properties totaling approximately 2.9 million square feet of GLA and one land parcel.

Advisors' Opinion:
  • [By Rich Duprey]

    Industrial real estate owner�First Industrial� (NYSE: FR  ) �announced yesterday�its second-quarter dividend of $0.085 per share/unit, the same rate it paid last quarter when it reinstated its dividend after a four-year hiatus.

Best Freight Stocks To Own Right Now: Websense Inc. (WBSN)

Websense, Inc. provides unified Web, data, and email content security solutions to protect data and users from cyber-threats, information leaks, legal liability, and productivity loss. The company?s Web security solutions include Web Filter that enables employers to proactively analyze, report, and manage employee access to Web sites; Web Security, which enables organizations to manage, as well as block access to sites associated with spyware, phishing, keylogging, and other threats; Web Security Gateway, a network-based Web security solution; and Web Security Gateway Anywhere, and data loss prevention technology and hybrid deployment options to protect against data leaks via the Web, and allow IT administrators to create unified policies throughout the organization, as well as offers V-Series Appliances as standard server hardware platforms optimized for its software products. Its Data Security solutions include Data Security Suite, Data Discover, Data Monitor, Data Prote ct, and Data Endpoint to protect against the loss of confidential information and data due to internal threats, such as inadequate business process controls, employee error and malfeasance, and theft, including undetected malicious code embedded in the networks. The company?s email security technologies include Hosted Email Security and Email Security to provide protection from spam and email-borne viruses, as well as basic inbound and outbound content filtering. In addition, it offers TRITON Enterprise solutions that provide Web, data, and email security across the enterprise; and technical support and professional services. The company offers its products and services to public sector entities, enterprise customers, small and medium sized businesses, and Internet service providers through a network of value-added resellers and original equipment manufacturers worldwide. Websense, Inc. was founded in 1994 and is headquartered in San Diego, California.

Advisors' Opinion:
  • [By Rich Duprey]

    Websense (NASDAQ: WBSN  ) shareholders have until June 25 to decide on a $24.75-a-share acquisition offer by Vista Equity Partners.

    The board of cyber attack security specialist Websense has agreed to be acquired by Vista Equity Partners in the $903 million deal announced earlier this month. This morning, the companies announced that the�tender offer for all of the outstanding shares of Websense common stock has begun.

Top 5 Gas Utility Stocks To Watch Right Now: Whirlpool Corporation(WHR)

Whirlpool Corporation engages in the manufacture and marketing of home appliances worldwide. Its principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other portable household appliances. The company also produces hermetic compressors for refrigeration systems. It markets and distributes its products under various brand names, including Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Roper, Estate, Admiral, Gladiator, Inglis, Acros, Supermatic, Consul, Brastemp, Eslab� de Lujo, Bauknecht, Ignis, Laden, Polar, and Privileg in North and Latin America, Europe, the Middle East, Africa, and Asia. Whirlpool Corporation sells its products to retailers, dealers, distributors, builders, and other manufacturers. The company was founded in 1898 and is headquartered in Benton Harbor, Michigan.

Advisors' Opinion:
  • [By Shauna O'Brien]

    Bank of America/Merrill Lynch reported on Wednesday that it has added Whirlpool Corporation (WHR) to its US 1 list.

    The firm has added WHR to its US 1 list due to the company’s market share and leverage to the housing market recovery. Analysts currently have a $175 price target on WHR, suggesting a 17% increase from the stock’s current price of $144.62.

    Whirlpool shares were up $1.42, or 0.99% during Wednesday morning trading. The stock is u[ 42% YTD.

  • [By Ben Levisohn]

    The S&P 500 has gained 0.3%, while the Dow Jones Industrial Average has risen 0.2%. The S&P 500 is being led higher by oil refiners–Valero Energy has gained 4.5% to $43.10 and Marathon Petroleum (MPC) has risen 4.3% to $78.32–and by homebuilders–PulteHome has jumped 3.6% to $17.65 and Lennar is up 3.2% at $34.38. Whirlpool (WHR) rounds out the top-five S&P 500 performers with a 3.6% gain to $149.41.

Top 5 Gas Utility Stocks To Watch Right Now: Comcast Corp (CCV)

Comcast Corporation (Comcast), incorporated on December 12, 2001, is a provider of entertainment, information and communications products and services. The Company has developed, managed and operated cable systems. The Company operates in five segments: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks. Cable Communications provides video, high-speed Internet and voice services (cable services) to residential and business customers in 39 states and the District of Columbia. Cable Networks consists primarily of its national cable television networks, its regional sports and news networks, its international cable networks, its cable television production studio, and its related digital media properties. Broadcast Television consists primarily of its NBC and Telemundo broadcast networks, its NBC and Telemundo owned local television stations, its broadcast television production operations, and its related digital media properties. Filmed Entertainment consists of the operations of Universal Pictures, which produces, acquires, markets and distributes filmed entertainment and stage plays worldwide. Theme Parks consists primarily of its Universal theme parks in Orlando and Hollywood. Its other business interests are included in Corporate and Other and primarily include Comcast Spectacor, which owns the Philadelphia Flyers and the Wells Fargo Center, a multipurpose arena in Philadelphia. Comcast Spectacor also owns Global Spectrum, which provides facilities management, and Ovations Food Services, which provides food services, for sporting events, concerts and other events. In July 2012, Comcast acquired Microsoft Corporation's 50% stake in MSNBC.com. Effective March 19, 2013, it acquired a 49% interest in NBCUniversal Media LLC.

On January 28, 2011, the Company closed its transaction with General Electric Company (GE) to form a new company named NBCUniversal, LLC (NBCUniversal Holdings). The Company controls and owns 51% of NBCUniversal Holdings, and! GE owns the remaining 49%.As part of the NBCUniversal transaction, GE contributed the businesses of NBCUniversal, which is a wholly owned subsidiary of NBCUniversal Holdings. The NBCUniversal businesses that were contributed included its national cable networks, the NBC and Telemundo broadcast networks and its NBC and Telemundo owned local television stations, Universal Pictures, the Universal Studios Hollywood theme park, and other related assets. The Company contributed its national cable networks, its regional sports and news networks, certain of its Internet businesses, including DailyCandy and Fandango, and other related assets (the Comcast Content Business), all of which are part of its Cable Networks segment.

Cable Services

The Company offers a variety of cable services over its cable distribution system to residential and business customers. Subscription rates and related charges vary according to the services and features the customer receives and the type of equipment they use, and customers typically pay the Company on a monthly basis. Residential customers may generally discontinue service at any time, while business customers may only discontinue service in accordance with the terms of their contracts, which typically have 1 to 3 year terms. As of December 31, 2011, its cable systems served 22.3 million video customers, 18.1 million high-speed Internet customers and 9.3 million voice customers and passed more than 52 million homes and businesses in 39 states and the District of Columbia.

The Company offers a variety of video services with access to hundreds of channels depending on the level of service selected. Its levels of service typically range from a limited basic service with access to between 20 and 40 channels of video programming to a digital service with access to over 300 channels. Its video services generally include programming provided by national and local broadcast networks and by national and regional cable networks, as well as gov! ernmental! and public access programming. Its digital video services generally include access to over 40 music channels, its On Demand service and an interactive, on-screen program guide. The Company also offers packages that include extensive amounts of foreign-language programming, and it offers other specialty tiers of programming with sports, family and international themes. Its video customers may also subscribe to premium network programming. Premium networks include cable networks, such as HBO, Showtime, Starz and Cinemax, which generally offer, without commercial interruption, movies, original programming, live and taped sporting events, concerts and other special features.

The Company�� On Demand service provides its digital video customers with more than 30,000 standard-definition and high-definition programming choices. A substantial portion of its On Demand content is available to its digital video customers at no additional charge. Digital video customers subscribing to a premium network have access to the premium network�� On Demand content without additional fees. Its On Demand service includes fee-based selections that allow its video customers to order individual new release and library movies and special-event programs, such as professional boxing, mixed martial arts, wrestling and concerts.

The Company�� high-definition television (HDTV) service includes a selection of high-definition programming choices, including broadcast networks, national cable networks, premium networks and regional sports networks. In addition, its On Demand service provides HDTV video customers with a selection of up to 6,000 high-definition programming choices in select markets over the course of a month. Its digital video recorder (DVR) service allow digital video customers to select, record and store programs on their set-top box and play them at whatever time is convenient. Its DVR service also provides the ability to pause and rewind live television. The Company also offers select ! programmi! ng in three dimensional (3D) format on the channels it distributes and On Demand to its HDTV customers who have 3D capable television (TV) sets. In 2012, it began streaming certain live television programming online and through its mobile applications in some of its markets.

The Company offers a variety of high-speed Internet services with downstream speeds of up to 105 Mbps. These services also include its Internet portal, XFINITY.com, which provides access to email, voice mail, an address book, online storage, and online security features. Its customers also have the ability to access these services, including managing their e-mail accounts, through its mobile applications using smartphones and tablets. It offers voice service plans, using an interconnected Voice over Internet Protocol (VoIP) technology, that provide either usage-based or unlimited local and domestic long-distance calling, include the option for a variety of international calling plans, voice mail, caller identification (ID), call waiting and other features, including the ability to access and manage voice mail and other account information online and through its mobile applications using smartphones and tablets.

The Company offers its cable services to small and medium-sized businesses (business services). In addition to the features provided to its residential customers, its services for business customers also include a Website hosting service, an interactive tool that allows customers to share, coordinate and store documents online, a business directory listing and the option to add up to 24 phone lines. Medium-sized business customers are also offered its Metro-Ethernet data service capable of connecting multiple locations at speeds of up to 10 gigabit per second. It also provides cell backhaul services to cellular network operators. To offer its video services, it licenses a substantial portion of its programming from cable and broadcast networks.

Cable Networks

The Company�! � Cable ! Networks segment operates a diversified portfolio of 15 national cable networks, 13 regional sports and news networks, more than 60 international channels, and digital media properties consisting primarily of brand-aligned and other websites, including DailyCandy, Fandango and iVillage. Its 13 regional sports and news networks are Comcast SportsNet Philadelphia, Comcast SportsNet Mid-Atlantic (Baltimore/Washington), Cable Sports Southeast, Comcast SportsNet Chicago, MountainWest Sports Network, Comcast SportsNet California (Sacramento), Comcast SportsNet New England (Boston), Comcast SportsNet Northwest (Portland), Comcast Sports Southwest (Houston), Comcast SportsNet Bay Area (San Francisco), New England Cable News (Boston), Comcast Network Philadelphia and Comcast Network Mid-Atlantic (Baltimore/Washington). The Company markets and distributes its cable network programming in the United States and internationally to multichannel video providers, as well as to Internet and wireless distributors.

The Company�� cable networks develop their own programs or acquire programming rights from third parties. Its Cable Networks segment includes its production studio, Universal Cable Production that identifies, develops and produces original content for cable television and other distribution platforms both for its cable networks and for those of third parties. It licenses the content to all forms of television, including broadcast and cable networks, and through home video and various digital media platforms, both in the United States and internationally. Its Cable Networks segment primarily generates revenue from the distribution of its cable network programming and from the sale of advertising. Distribution revenue is generated from distribution agreements with multichannel video providers. Advertising revenue is generated from the sale of advertising time on its cable networks and related digital media properties. It also generates content licensing and other revenue from the licensing and sale! of its o! wned programming in the United States and internationally, including revenue from the sale of its owned programming on standard-definition digital video discs and Blu-ray discs (together, DVDs) and through digital media platforms, and from the licensing of its brands for consumer products.

Broadcast Television

The Company�� Broadcast Television segment operates the NBC and Telemundo broadcast networks, which together serve audiences and advertisers in all 50 states, including the United States metropolitan areas. Its Broadcast Television segment also includes its owned and operated NBC and Telemundo local television stations, its broadcast television production operations and its related digital media properties. Its Broadcast Television segment primarily generates revenue from the sale of advertising and from content licensing. Advertising revenue is generated from the sale of advertising time on its broadcast networks, owned local television stations and related digital media properties. Content licensing revenue is generated from the licensing of its owned programming in the United States and internationally. The Company also generates revenue from the sale of its owned programming on DVDs, through digital media platforms and from the licensing of its brands and characters for consumer products. In addition, its owned local television stations are beginning to receive retransmission fees from multichannel video providers in exchange for consent that allows carriage of the stations��signal. It also receives a portion of the retransmission fees received by its NBC affiliated stations.

The NBC network distributes more than 5,000 hours of entertainment, news and sports programming annually, and its programs reach viewers in virtually all United States television households through more than 200 affiliated stations across the United States, including its10 NBC owned local television stations. The NBC network develops a range of content through its entertainment, news ! and sport! s divisions and also airs a variety of special-events programming. The NBC network�� television library consists of rights of varying nature to more than 100,000 episodes of television content, including current and classic titles, unscripted programming, sports, news, long-form and short-form programming and locally produced programming from around the world. In addition, the NBC network operates various Websites that extend its brands and content online. The NBC network produces its own programs or acquires the rights to programming from third parties. NBCUniversal has various contractual commitments for the licensing of rights to multiyear programming, including sports programming.

The Company�� broadcast television production operations create and produce original content, including scripted and unscripted series, talk shows, and digital media projects that are sold to broadcast networks, cable networks, local television stations and other media platforms owned by the Company and third parties, as well as through home video, both in the United States and internationally. It also produces first-run syndicated shows, which are programs for initial exhibition on local television stations in the United States, on a market-by-market basis, without prior exhibition on a network. It distributes some of its programs after their exhibition on a broadcast network, as well as older television programs from its library, to local television stations and cable networks in the off-network syndication market in the United States.

The Company owns and operates 10 NBC affiliated local television stations that collectively reached approximately 31 million United States television households, which represents approximately 27% of all United States television households, as of December 31, 2011. In addition to airing NBC�� national programming, its stations produce news, sports, public affairs and other programming that addresses local needs and acquire syndicated programming from other ! sources. ! Telemundo is a Hispanic media company that produces, acquires and distributes Spanish-language content in the United States and internationally. Telemundo�� operations include the Telemundo network; its owned local television stations; mun2, a cable network featuring diverse, youth-oriented entertainment for bicultural Latinos, and Telemundo-related digital media properties consisting primarily of brand-aligned websites, such as Telemundo.com.

The Telemundo network is a Spanish-language broadcast network featuring original telenovelas, theatrical films, news, specials and sporting events. The Company develops its own programming primarily through Telemundo�� production studio and also acquire the rights to content from third parties. During the year ended December 31, 2011, it entered into an agreement with Federation Internationale de Football Association (FIFA) to license the Spanish-language United States broadcast rights to FIFA World Cup soccer from 2015 through 2022 and also acquired the Spanish-language United States broadcast rights for the National Football League (NFL) games that the NBC network will broadcast as part of its agreement with the NFL that runs through the 2022-23 season. As of December 31, 2011, Telemundo owned 15 local television stations, including 14 local television stations affiliated with the Telemundo network and an independent television station in Puerto Rico.

Filmed Entertainment

The Company�� Filmed Entertainment segment consists of the operations of Universal Pictures, which produces, acquires, markets and distributes filmed entertainment worldwide in various media formats for theatrical, home entertainment, television and increasingly through other distribution platforms. It also develops, produces and licenses stage plays. Its content consists of theatrical films, direct-to-video titles and its film library, which is comprised of approximately 4,500 titles in a variety of genres. It produces films both on its own and jo! intly wit! h other studios or production companies, as well as with other entities. Its films are produced under both the Universal Pictures and Focus Features names. Its films are marketed and distributed worldwide primarily through its own marketing and distribution companies. The Company also acquires distribution rights to films produced by others, which may be limited to particular geographic regions, specific forms of media or certain periods of time. After their theatrical release, it distributes its films globally for home entertainment use on digital versatile disc (DVD) and in various digital formats, which includes the licensing of its films to third parties for electronic sell-through over the Internet. The Company also licenses its films, including selections from its film library, to all forms of television, including broadcast, cable and premium networks, and pay-per-view and video on demand services.

The Company�� Filmed Entertainment segment primarily generates revenue from the worldwide theatrical release of its owned and acquired films, content licensing and home entertainment. Content licensing revenue is generated from the licensing of its owned and acquired films to broadcast, cable and premium networks, as well as other distribution platforms. Home entertainment revenue is generated from the licensing and sale of its owned and acquired films through DVD sales to retail stores, rental kiosks and subscription by mail, as well as through digital media platforms, including electronic sell through. It also generates revenue from distributing third parties��filmed entertainment, producing stage plays, publishing music and licensing consumer products.

Theme Parks

The Company�� Theme Parks segment consists primarily of its Universal theme parks in Orlando and Hollywood. Universal Orlando includes two theme parks, Universal Studios Florida and Universal�� Islands of Adventure, as well as CityWalk, a dining, retail and entertainment complex. Universal Or! lando als! o features three on-site themed hotels, in which it owns a non-controlling interest. Its Universal theme park in Hollywood consists primarily of Universal Studios Hollywood. In addition, it licenses the right to use the Universal Studios brand name, certain characters and other intellectual property to third parties that own and operate the Universal Studios Japan theme park in Osaka, Japan and the Universal Studios Singapore theme park on Sentosa Island, Singapore. It also owns a water park, Wet �� Wild, located in Orlando.

The Company�� Theme Parks segment licenses the right to use a substantial amount of intellectual property from third parties for its themed elements in rides, attractions, retail outlets and merchandising. ItsTheme Parks segment generates revenue primarily from theme park attendance and per capita spending, as well as from management, licensing and other fees. Per capita spending includes ticket price and in-park spending on food, beverage and merchandise.

The Company competes with DIRECTV, DISH Network, AT&T, CenturyLink and Verizon.

Advisors' Opinion:
  • [By Brian Stelter]

    Comcast (CCV) has agreed to pay $158.82 per share of Time Warner Cable (TWC, Fortune 500) stock, according to two people with direct knowledge of the transaction who insisted on anonymity because the deal will not be publicly announced until Thursday morning.

  • [By James O'Toole]

    Concerns about potential abuses in the industry gained additional urgency last week following news that Comcast (CCV) intends to buy Time Warner Cable (TWC, Fortune 500), a deal that would combine the two biggest cable companies in the United States.

Tuesday, May 13, 2014

ABF, banks drag FTSE 100 lower despite strong data

LONDON (MarketWatch) — The negative sentiment across global financial markets weighed on U.K. stocks on Tuesday, offsetting a strong reading on the country's services sector and a solid growth forecast from the European Commission.

The FTSE 100 index (UK:UKX)  dropped 0.6% to 6,726.11, on track to break a two-session winning streak.

Click to Play Taper delay: How to invest in bonds now

With the Fed on hold, bond prices seem to be going nowhere. Fixed-income writer Michael Aneiro sees opportunity in closed-end funds.

Shares of RSA Insurance Group PLC (UK:RSA)  led losers in London, off 6%, after the company said it expects its full-year weather-related losses to be "materially above planning assumptions" on the back of severe weather events in 2013.

Associated British Foods PLC (UK:ABF)  lost 2.1% after the food and retail firm said it expects earnings per share in fiscal 2014 to be similar to 2013, as a decline in profit at the sugar division will offset improvement at the Primark clothing chain.

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On a more upbeat note, shares of Marks and Spencer Group PLC (UK:MKS)  gained 3.4% after the retailer reported a rise in first-half profit on a lower tax charge that helped outweigh the growing costs of the company's turnaround plan.

The broader U.K. market ignored an encouraging reading on the country's services sector. The Markit/CIPS U.K. Services PMI for October showed that a sharp rise in new business drove the biggest rise in activity for over 16 years. The index rose to 62.5 in October, versus September's 60.3, the largest increase since May 2007.

The pound (GBPUSD)  jumped after the data, climbing to $1.6044 from late Monday's $1.5951.

Additionally, the European Commission more than doubled its growth forecast for the U.K. in 2013. In its autumn forecast, the European Union's executive arm said the economy would grow 1.3% in 2013, considerably higher than the 0.6% growth it projected in May.

European Pressphoto Agency Banks drop in London on Tuesday. EPA/Bogdan Maran

The reports, however, weren't enough to lift the U.K. index out of red territory, as the benchmark tracked a broader negative sentiment across financial markets. European stocks were mostly down after the European Commission lowered the growth forecast for the euro zone for 2014 and raised the region's unemployment estimates.

Data from the British Retail Consortium on Tuesday showed retail sales rose only modestly in the U.K. in October, raising doubts about consumers' ability to support an economic recovery.

Banks were among major decliners, playing a part in dragging the FTSE 100 index lower. Shares of Barclays PLC (UK:BARC)   (BCS)  fell 2.7%, Royal Bank of Scotland Group PLC (UK:RBS)   (RBS)  dropped 2.9%, Lloyds Banking Group PLC (UK:LLOY)   (LYG)  gave up 2.3% and sector heavyweight HSBC Holdings PLC (UK:HSBA) (HBC)   (HK:5)  erased 1.3%.

Among other notable movers, Imperial Tobacco Group PLC (UK:IMT)   (ITYBY) climbed 1.9% after the company reported a rise in full-year profit.

Stocks: Sell in May? No way!

S&P futures 2014 05 13

Click chart for in-depth premarket data.

NEW YORK (CNNMoney) The "sell in May and go away" market refrain doesn't seem to apply this year as stocks continue to push into record territory.

U.S. stock futures were inching up Tuesday ahead of the opening bell.

The Dow Jones industrial average and the S&P 500 closed at record highs Monday, and the Nasdaq climbed by about 1.8%.

Meanwhile, economic releases could affect investor sentiment. The U.S. Census Bureau will report April retail sales at 8:30 a.m. ET. At the same time, the Bureau of Labor Statistics will release import and export price data.

It's expected to be a relatively quiet day on the earnings front. Fossil (FOSL) will report earnings after the closing bell. Big retailers such as Wal-Mart (WMT, Fortune 500) and Macy's (M, Fortune 500) will be reporting later in the week.

Shares of DirecTV (DTV, Fortune 500) were surging by roughly 5% in premarket on reports that AT&T (T, Fortune 500) may make a bid to buy the company.

Shares in Airbus (EADSF) were rising by 5% in Europe after the firm reported better-than-expected quarterly results.

Investors will also be focusing on developments in the pharmaceutical industry Tuesday. The American drug maker Pfizer (PFE, Fortune 500) wants to buy Britain's AstraZeneca (AZN) and both CEOs will appear before a U.K. parliamentary committee to answer questions about the potential takeover.

In Asia, India's benchmark Mumbai Sensex index surged to a record high Tuesday after election exit polls indicated that voters will deliver a mandate to Narendra Modi and the pro-business Bharatiya Janata Party.

Most other regional markets ended with gains. The Nikkei in Japan jumped by 2%.

All European markets were rising in morning trading. Germany's Dax index was making the biggest advance, up by 0.8% To top of page

Sunday, May 11, 2014

Kleintop: Forget Bonds; Your Portfolio Needs รข€˜James Bondรข€™

The Strategists Panel is one of the most popular annual sessions held at IMCA’s national conference, and this year it didn’t disappoint.

Jeffrey Kleintop of LPL, Jeffrey Knight of Columbia Management and Benjamin Pace of Deutsche Bank regaled the packed session in Boston with insights and plenty of quotable takeaways. For example, when Kleintop was discussing the opportunities in fixed income, he was blunt and humorous at the same time.

“There are no opportunities” in the bond market, he said, and “there’s no ‘high’ in high yield.” Instead, he recommended that advisors put some “James Bond” in clients’ portfolios, by which he meant not “cool gadgets” as seen in the Bond movies, but alternatives like REITs, business development companies (BDCs) and MLPs.

Knight said that “you could argue that bond yields are way too low,” but “when inflation does get growing it’s likely to be disruptive” to fixed-income investors. He counseled that investors should carefully watch the wage inflation numbers as a precursor to generally higher inflation.

Speaking of the Federal Reserve’s quantitative easing program, Pace said that “[Ben] Bernanke thought he could glibly taper,” but that the ‘Taper Tantrum’ was a good experience for investors and the market. When will QE end? Echoing a prediction made earlier in the conference by Princeton economist (and former Fed Vice Chairman) Alan Blinder, Pace believes the Fed will wind down tapering by October or December of this year. That will be good for the market and economy, he said, because there was a “danger of becoming addicted to QE,” but the end of the Fed’s heavy buying of Treasuries and mortgage-backed securities will mean that “the dislocation will go away.”

Kleintop argued that “inflation bottomed in February” of this year, and that from his listening to many corporate earnings calls, he “heard a lot about pricing power,” so he suspects there will be some price increases in the economy.

If bonds don’t offer opportunity, what about stocks? What about emerging markets? What’s the danger from Russia’s meddling in Ukraine? Kleintop was optimistic, noting that as has been the case with other geopolitical disruptions of the past few years in Egypt, Syria, Iran and North Korea, the Ukraine situation was “troubling, but did not derail the markets.” Vladimir Putin, he said, is “trying to re-establish a buffer zone” between itself and Western Europe that it had lost since the Iron Curtain fell and the Eastern bloc countries began to embrace capitalism. Pace agreed somewhat, saying “Ukraine is masking Putin’s economic underperformance,” while “Koreas is now viewed as China’s problem.”

As for the bull market, Kleintop asked rhetorically, “What ends a bull market?" before answering, "an inverted yield curve,” which “will take a while to achieve.” To get to that inversion, “we’d need a 4% fed funds rate,” which he suspects won’t occur, if it ever does, before 2016 or 2017.

Pace acknowledged that the emerging markets are slowing down, but that “worldwide, economic growth will be led by the U.S.” While at Deutsche he said “we’ve encouraged clients over the last 10 years not to be so dollar denominated” in their investments, “now we’re asking for them to come home.” That’s why “we’re exploring emerging market debt” that’s in dollars, he said, arguing that “a lot of these [EM] countries are at or near investment grade.” Pace said “we’d rather stay with the developed markets,” but reported Deutsche had “taken Japan down to a neutral” rating due to recent Bank of Japan moves. For Knight, emerging markets equities “stand out as a cheap asset class,” outperforming developed markets equities since February.

“Last year the market was led by the U.S. and Japan,” he said, but this year it will be led by the emerging markets.

Kleintop agreed, saying that emerging markets “used to trade at a discount” in the 1990s before “they got to a premium” in the 2000s, but now he thinks some emerging markets have “attractive valuations.” Kleintop said “we’re attracted more to Asia” these days, especially the Philippines and Indonesia, and suggested that “valuations could drift higher."

Turning to municipal bonds, Kleintop says he thinks “there’s still value there,” and says investors were distracted by the high-profile muni bond problems with Detroit and Puerto Rico. “There was some throwing out of the baby with the bathwater,” he said, while Pace argued that munis with durations of less than five years are overvalued, but “longer than that there are opportunities.”

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The strategists finally turned to domestic politics, with Kleintop arguing that if the Republican Party wins control of the Senate in this year’s midterm elections, “a lame-duck Obama” would be good for businesses. They’ll begin to spend more, “not just on buybacks,” but investing in equipment, facilities and employees, he believes, since no new legislation that could affect them will be coming out of a divided government in Washington. Knight agreed that "a lame duck would be a bullish window," but that "where we are now is troubling."

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