Tuesday, April 29, 2014

Hot Rising Stocks To Invest In Right Now

The Department of Defense handed out 20 new defense contracts�on Monday, awarding $717.7 million in total. Surprisingly, one single firm captured 20% of the contracts on offer: Lockheed Martin (NYSE: LMT  ) .

In a series of four wins, Lockheed secured contracts worth:

$111.5 million: for the firm's Mission Systems and Training (MST) division, in the form of a cost-plus-incentive-fee, cost-only, firm-fixed-price contract for the development, integration and production of AN/SQQ-89A(V)15 Surface Ship Undersea Warfare Systems.�This system enables a surface warship to search, detect, classify, localize and track undersea contacts, and to engage and evade submarines, mine-like small objects and torpedo threats.�Lockheed will perform the work under a foreign military sales contract benefiting the Japan Self-Defense Force with a May 2014 completion date. $29.7 million: also for MST, in the form of a sole-source, cost-plus-incentive-fee/cost-plus-award-fee contract modification for post-certification support of the Aegis Ballistic Missile Defense baselines 4.0.X, 5.0 and 5.0 capability upgrade -- a project to turn Aegis into a ballistic missile defense system. This contract extension runs through Dec. 2014. $8.2 million: for the firm's Missile and Fire Control division, in the form of a cost-plus-fixed-fee contract to supply Affordable Phased Array Sensor Systems to the U.S. Army. These sensors are specially designed to detect incoming missiles, helicopters, and unmanned aerial vehicles. $48.2 million: in a contract award shared among Lockheed Martin Services, ABM's (NYSE: ABM  ) Government Services unit, LB&B Associates, J&J Maintenance, and EMCOR (NASDAQ: EMKR  ) Government Services. This contract to provide engineering services to the U.S. Army Corps of Engineers is actually a modification of a previously awarded firm-fixed-price, multiple-award, task-order contract, and raises the ceiling value of the initial contract.

Hot Rising Stocks To Invest In Right Now: LDK Solar Co. Ltd.(LDK)

LDK Solar Co., Ltd., together with its subsidiaries, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products; and development of power plant projects. It offers solar-grade and semiconductor-grade polysilicon; and multicrystalline and monocrystalline solar wafers to the manufacturers of solar cells and solar modules. The company also provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers; and sells silicon materials, such as ingots and polysilicon scraps. In addition, it engages in the production and sale of solar cells and modules to developers, distributors, and system integrators; and design and development of solar power projects in Europe, the United States, and China, as well as provides engineering, procurement, and construction services. LDK Solar Co., Ltd. operates in Europe, the Asia Pacific, and North America. The company was founded in 2005 and is based in Xinyu City, t he People?s Republic of China.

Advisors' Opinion:
  • [By Dan Caplinger]

    Next Tuesday, LDK Solar (NYSE: LDK  ) will release its latest quarterly results. Lately, investors have had to wonder whether the Chinese solar company will be able to continue operating, as LDK is one of many solar companies in the emerging-market nation going through a cash crunch due to large losses.

Hot Rising Stocks To Invest In Right Now: American Eagle Outfitters Inc (AEO)

American Eagle Outfitters, Inc. (AEO, Inc) is a specialty retailer that operates in the United Sates and Canada, and online at ae.com. AEO, Inc operates under the American Eagle (AE), aerie by American Eagle (aerie), and 77kids by american eagle (77kids) brands. Through the Company�� family of brands, it offers clothing, accessories and personal care products. As of January 28, 2012, the Company operated 1,090 stores in the United States and Canada under the American Eagle Outfitters, aerie and 77kids brands. The Company also had 21 franchised stores operated by its franchise partners in 10 countries. During the fiscal year ended December 31, 2011, the Company opened 33 new stores. As of December 31, 2011, it operated in all 50 states, Puerto Rico and Canada. During fiscal 2011, the Company remodeled and refurbished a total of 106 AE stores.

AE Brand

The American Eagle Outfitters brand targets 15 to 25-year old men and women. Denim is the cornerstone of the American Eagle product assortment, which is complemented by other categories including sweaters, graphic t-shirts, fleece, outerwear and accessories. As of January 28, 2012, the Company operated 911 American Eagle Outfitters stores. During fiscal 2011, it opened 11 AE stores.

aerie by American Eagle

The Company�� aerie is a collection of Dormwear, intimates and personal care products for the AE girl. The collection is available in aerie stores throughout the United States and Canada, online at aerie.com and at select American Eagle stores. As of January 28, 2012, AEO, Inc operated 158 aerie stores. During fiscal 2011, it opened 10 aerie stores.

77kids by american eagle

77kids offers clothing and accessories for kid�� ages 2 to 14 and babies under the brand name little77TM. As of January 28, 2012, the Company operated 21 77kids stores. All 77kids clothing is backed by the brand�� 77wash and 77soft. During fiscal 2011, AEO, Inc opened 12 77kids stores.

AEO Direct

The Company's online business, AEO Direct, ships to 77 countries worldwide. The Company sells merchandise via its e-commerce operations, ae.com, aerie.com and 77kids.com, which are extensions of the lifestyle that it conveys in its stores. As of December 31, 2011, AEO Direct shipped to 77 countries worldwide. In addition to purchasing items online, customers can experience AEO Direct in-store through Store-to-Door. Store-to-Door enables store associates to sell any item available online to an in-store customer in a single transaction. The Company accepts PayPal and Bill Me Later as a means of payment from its ae.com, aerie.com and 77kids.com customers.

Advisors' Opinion:
  • [By Douglas A. McIntyre]

    The Old Navy decision is not a direct threat to full service retailers, but for niche clothiers, particularly targeting young people, the sweepstakes could trigger problems. Shares of Abercrombie & Fitch (NYSE: ANF) have already been bludgeoned due to a forecast of�falling sales and a plan to close stores. Its shares trade at $33, near the 52-week low and well off the 52-week high of just above $55.� And, smaller rival American Eagle Outfitters�(NYSE:AEO) recently revised its earnings forecasts higher for the current quarter due to�better margins. Its shares, however, remain near one year lows.

  • [By Lee Jackson]

    American Eagle Outfitters Inc. (NYSE: AEO) has an eye-popping 25% IRR. The company operates as an apparel and accessories retailer in the United States and Canada. The company’s retail stores offer denims, sweaters, fleece, outerwear, graphic T-shirts, footwear and accessories for 15- to 25-year-old men and women under the American Eagle Outfitters brand name, as well as intimates and personal care products for girls under the Aerie brand name. As of February 2, 2013, the company operated 893 American Eagle Outfitters stores and 151 Aerie stand-alone stores, as well as 49 franchised stores in 13 countries. American Eagle common shares currently trade at a 37% discount to its conservatively estimated private market value, which represents significant upside of 55%. The consensus price target for the stock is $16, and the high target is posted at $20. The stock closed Thursday at $14.24.

Best Recreation Companies To Own In Right Now: Owens-Illinois Inc.(OI)

Owens-Illinois, Inc., through its subsidiaries, manufactures and sells glass container products primarily in Europe, North America, South America, and the Asia Pacific. The company produces glass containers for beer, ready-to-drink low alcohol refreshers, spirits, wine, food, tea, juice, and pharmaceuticals, as well as for soft drinks and other non-alcoholic beverages, including returnable/refillable glass containers. It serves brewers, wine vintners, distillers, and food producers. The company sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. Owens-Illinois, Inc. was founded in 1903 and is headquartered in Perrysburg, Ohio.

Advisors' Opinion:
  • [By Anora Mahmudova]

    Owens Illinois Inc. (OI) �fell 1.9%. Analysts at Bank of America Merrill Lynch reportedly downgraded the glass company to neutral from buy , according to the Analyst Ratings Network.

  • [By Ben Eisen and Saumya Vaishampayan]

    Owens Illinois Inc. (OI) �was down 2.1% Friday. Analysts at Bank of America Merrill Lynch reportedly downgraded the glass company to neutral from buy , according to the Analyst Ratings Network.

  • [By Jon C. Ogg]

    Owens-Illinois Inc. (NYSE: OI) was upgraded to Overweight from Neutral by J.P. Morgan, sending shares up almost 4%.

    Also see a guide to oil and stocks based up military action in Syria �prepared by UBS.

Hot Rising Stocks To Invest In Right Now: ConAgra Foods Inc.(CAG)

ConAgra Foods, Inc. operates as a food company primarily in North America. It operates in two segments, Consumer Foods and Commercial Foods. The Consumer Foods segment provides branded, private label, and customized food products, which are sold in various retail and foodservice channels. It offers products in various categories, such as meals, entrees, condiments, sides, snacks, and desserts in frozen, refrigerated, and shelf-stable temperature classes. This segment?s principal brands include Alexia, ACT II, Banquet, Blue Bonnet, Chef Boyardee, DAVID, Egg Beaters, Healthy Choice, Hebrew National, Hunt?s, Marie Callender?s, Orville Redenbacher?s, PAM, Peter Pan, Reddi-wip, Slim Jim, Snack Pack, Swiss Miss, Van Camp?s, and Wesson. The Commercial Foods segment provides commercially branded foods and ingredients that are sold to foodservice, food manufacturing, and industrial customers. Its primary products consist of specialty potato products, milled grain ingredients, a ran ge of vegetable products, seasonings, blends, and flavors. This segment sells products under brands, such as ConAgra Mills, Lamb Weston, and Spicetec Flavors & Seasonings. The company was founded in 1919 and is headquartered in Omaha, Nebraska.

Advisors' Opinion:
  • [By Ben Levisohn]

    ConAgra’s (CAG) is supposed to make things people want to eat. Instead, the market is eating the food company’s lunch today following disappointing guidance.

    REUTERS

    The Wall Street Journal reports:

    ConAgra Foods�Inc. cut its full-year earnings outlook, as the packaged-foods company said fiscal first-quarter earnings were softer than expected, especially in its consumer foods segment.

    The company now expects full-year adjusted earnings to range from $2.34 to $2.38 a share, down from its prior view of about $2.40.

    First-quarter earnings were 33 cents a share, or 37 cents excluding certain items. Analysts polled by Thomson Reuters most recently expected 45 cents a share.

    Citigroup’s David Driscoll still has hope for ConAgra’s shares. He writes:

    …while ConAgra is off to a disappointing start to F1Q14, we believe that overall US food volumes for the industry and ConAgra are at the cusp of a positive turnaround, in conjunction with the large US crop expected this fall. With ConAgra shares currently trading at 13.5x at the mid-point of management�� new F2014 EPS range, we believe that most of the disappointment surrounding today�� announcement is likely in the stock….We see good upside in ConAgra shares going forward, as Consumer Food trends are expected to
    strengthen, and as Q1 weakness appears to be more macro driven versus a company-specific issue. This puts Kraft (KRFT) under the most scrutiny in our group.

    S&P Capital IQ’s Tom Graves concurs:

    In light of disappointing EPS guidance from the company, we are lowering our 12-month target price to $38 from $42. Before special items, we are reducing our FY 14 (May) EPS estimate to $2.38 from $2.43, and FY 15′s by $0.08 to $2.62…In FY 14, we expect CAG’s Ralcorp acquisition to be the primary EPS growth driver. We see the stock at an attractive P/E discount to the food group.

    Most fo

  • [By Katie Brennan]

    ConAgra Foods Inc. (CAG) added 5.1 percent to $35.04. The maker of Chef Boyardee pasta and Pam cooking spray reported quarterly profit that topped analysts estimates as acquisitions drove sales in its consumer foods unit.

Hot Rising Stocks To Invest In Right Now: SM Energy Co (SM)

SM Energy Company (SM Energy), incorporated in 1915, is an independent energy company. The Company is engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids (referred to as oil, gas, and NGLs) in onshore North America. The Company�� operations are focused on five operating areas in the onshore United States. In December 2011, the Company closed on its acquisition and development agreement with Mitsui E&P Texas LP (Mitsui), an indirect subsidiary of Mitsui & Co. Ltd., which transferred 12.5% of its working interest in certain non-operated oil and gas assets in South Texas. In August 2011, the Company sold approximately 15,400 net operated acres in LaSalle and Dimmit Counties, Texas to Talisman Energy USA Inc. and Statoil Texas Onshore Properties LLC (collectively, Talisman/Statoil). In June 2011, the Company completed the divestiture of certain assets located in its Mid-Continent region. In January 2011, it completed the divestiture of certain assets located in its Rocky Mountain region. In December 2013, SM Energy Co announced that it had closed its previously announced Anadarko Basin divestiture package.

As of December 31, 2011, the Company had working interests in 1,353 gross (741 net) productive oil wells and 2,928 gross (1,060 net) productive gas wells. All of its drilling activities are conducted using independent drilling contractors. As of December 31, 2011, it had 415.2 billion cubic feet of natural gas equivalent of proved undeveloped reserves.

South Texas & Gulf Coast Region

Operations for the South Texas & Gulf Coast region are managed from its office in Houston, Texas. The Company�� operations in South Texas & Gulf Coast Region focus primarily on its Eagle Ford shale program. Its acreage position covers a portion of the western Eagle Ford shale play, including acreage in the oil, the NGL-gas, and the dry gas windows of the play. During the year ended December 31, 2011, it had approx! imately 250,000 net acres in the play, which consisted of an approximate 165,000 net acre operated position in Webb, Dimmit, and LaSalle Counties, Texas and an approximate 85,000 net acre non-operated position in Maverick, Dimmit, LaSalle, and Webb Counties, Texas. As of December 31, 2011, it had approximately 196,000 net acres in the play. During 2011, the production was 69.7 billion cubic feet of natural gas equivalent.

Rocky Mountain Region

Operations for the Company�� Rocky Mountain region are managed from its office in Billings, Montana. During 2011, the Company focused on Bakken/Three Forks formations in the North Dakota portion of the Williston Basin, where it had approximately 87,000 net acres.

Mid-Continent Region

Operations for the Company�� Mid-Continent region are managed from its office in Tulsa, Oklahoma. The Company�� operations in the Mid-Continent region are primarily focused on the horizontal development of the Granite Wash formation in western Oklahoma. Its Mid-Continent region also manages its Woodford shale assets. In 2011, its Mid-Continent region's production was 31.6 billion cubic feet of natural gas equivalent. Proved reserves during 2011 were 234.6 billion cubic feet of natural gas equivalent.

ArkLaTex Region

The Company�� focus on the ArkLaTex region has been the horizontal development of its Haynesville shale acreage. In 2011, production in its ArkLaTex region was 30.1 billion cubic feet of natural gas equivalent.

Permian Region

Operations for the Company�� Permian region are managed from its office in Midland, Texas. The Company�� Permian region covers western Texas and eastern New Mexico. Its primary area of development focus in this region is the Wolfberry tight oil play. During 2011, the region�� production was 11.5 billion cubic feet of natural gas equivalent.

Advisors' Opinion:
  • [By Aaron Levitt]

    It pays to be a fist mover when it comes to America�� shale boom. In this case, it pays to the tune of 75% returns for shareholders in E&P firm SM Energy (SM).

  • [By Tyler Crowe]

    Who's doing it the best?
    It can be pretty handy to evaluate the entire industry on how efficiently it's replacing reserves, but reserve replacement costs can be more effective in evaluating individual companies. The lower the costs, the better it is. According to Ernst & Young, the most effective company at controlling reserve replacement costs is private company�Antero Resources, with a three-year average reserve replacement cost of about $2.88 per barrel of oil equivalent. Antero, and four of the other top five companies on Ernst & Young's list, are almost pure natural gas plays. If we've learned one thing over the past couple of years, it's that oil reserves and natural gas reserves are two totally different things when it comes to value. The five following companies have more than 50% liquids on�their�reserves and had the lowest reserve replacement costs for 2012.

    Company % Liquids in�Portfolio Oil Production Replacement Rate (3 Years) Reserve Replacement Costs (3-Year Average) Per boe Rosetta Resources� (NASDAQ: ROSE  ) 57% 846% $6.99 Continental Resources� (NYSE: CLR  ) 72% 827% $12.61 Laredo Petroleum� (NYSE: LPI  ) 52% 1,042% $13.51 SM Energy� (NYSE: SM  ) 53% 392% $14.67 SandRidge Energy� (NYSE: SD  ) 58% 704% $14.85

    Sources: Ernst & Young and S&P Capital IQ; author's calculations.

Hot Rising Stocks To Invest In Right Now: Warren Resources Inc.(WRES)

Warren Resources, Inc., an independent energy company, engages in the exploration, development, and production of onshore crude oil and gas reserves in the United States. It primarily explores for oil reserves in the Wilmington field in California; and natural gas in the Washakie Basin in Wyoming. The company was founded in 1990 and is headquartered in New York, New York.

Advisors' Opinion:
  • [By gurujx]

    Warren Resources, Inc. (WRES): Vice President & CFO Stewart P Skelly Sold 54,000 Shares

    Vice President & CFO Stewart P Skelly sold 54,000 shares of WRES stock on 09/19/2013 at the average price of $2.91. Stewart P Skelly owns at least 116,545 shares after this. The price of the stock has increased by 1.37% since.

  • [By Rich Smith]

    New York City-based Warren Resources (NASDAQ: WRES  ) has a new CFO.

    On Monday, the independent oil and gas company announced that it has promoted current Chief Financial Officer Timothy A. Larkin to the position of executive vice president for mergers�and acquisitions, after 18 years' service in the former capacity. Taking his place will be Corporate Controller Stewart P. Skelly, now promoted to the CFO's post.

Hot Rising Stocks To Invest In Right Now: NetSpend Holdings Inc.(NTSP)

Netspend Holdings, Inc., together with its subsidiaries, provides general purpose reloadable (GPR) prepaid debit and payroll cards, and alternative financial service solutions to underbanked and other consumers in the United States. Its GPR cards offer access to FDIC-insured depository accounts with a menu of pricing and features tailored to underbanked consumers needs; and serves as access devices to an FDIC-insured depository account with a bank. The company also provides various products and services to its cardholders, such as direct deposit, interest-bearing savings accounts, bill pay functionality, card-to-card transfer capability, personal financial management tools, and online and mobile phone card account access, as well as overdraft protection through its issuing Banks, and complimentary insurance coverage services. Netspend Holdings, Inc. markets its cards through various distribution channels, including retail distributors, direct-to-consumer and online marketi ng programs, and contractual relationships with corporate employers. As of December 31, 2011, it offered approximately 2.1 million active cards through approximately 600 retail distributors at approximately 40,000 locations; and reload services through approximately 450 retailers at approximately 130,000 locations. The company was founded in 1999 and is based in Austin, Texas.

Advisors' Opinion:
  • [By Jane Edmondson]

    One additional item of note: the stock has been a rumored take-out candidate since another large competitor, NetSpend (NTSP), received an offer to be acquired in February by global payment solutions provider TSYS (TSS).

Monday, April 28, 2014

Stocks Hitting 52-Week Lows

Related HAE US Stock Futures Gain Ahead Of Home Sales Report FDA News Lifts Dyax Slightly - Analyst Blog Related HMC Honda Q4 Earnings Beat Ests, Up Y/Y - Analyst Blog Top 4 Large-Cap Stocks In The Auto Manufacturers-Major Industry With The Highest EPS General Motors Scores High in SUV Crash Test (Fox Business)

Haemonetics (NYSE: HAE) shares fell 8.57% to reach a new 52-week low of $30.40 after the company Q4 adjusted earnings of $0.46 per share on revenue of $241.10 million. The company's board also announced a $100 million share buyback program.

Honda Motor Co (NYSE: HMC) shares touched a new 52-week low of $32.64. Honda posted its Q4 earnings of ¥170.5 billion ($1.66 billion), or ¥94.61 (92 cents) per share, versus ¥75.8 billion, or ¥42.03 per share in the year-ago quarter.

Google (NASDAQ: GOOG) shares tumbled 0.62% to touch a new 52-week low of $512.96. Google's trailing-twelve-month revenue is $62.29 billion.

Athersys (NASDAQ: ATHX) shares fell 56.04% to reach a new 52-week low of $1.20 on failed trial results for ulcerative colitis.

Posted-In: 52-Week LowsNews Movers & Shakers Intraday Update Markets

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Is Costco Still A Hot Stock?

costco2

With shares of Costco (NASDAQ:COST) trading around $115, is COST 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

Costco is engaged in the operation of membership warehouses in the United States and Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Australia, and through majority-owned subsidiaries in Taiwan and Korea. The company's depots receive container-based shipments from manufacturers and reallocate these goods for shipment to its individual warehouses, generally in less than 24 hours. Costco's typical warehouse format averages approximately 143,000 square feet, where many products are offered for sale in case, carton, or multiple-pack quantities only.

Costco looks to increase profits this summer as consumers aim to stock up on their favorite seasonal items. However, the company is not as popular as Wal-Mart (NYSE:WMT) or Target (NYSE:TGT), which also provide general items such as sunscreen, pool gear, and bathing suits. But offering a large selection of bulk products at affordable prices makes Costco a go-to location for many shopping needs. Look for Costco to continue to provide products at sizes and prices that consumers and companies demand.

T = Technicals on the Stock Chart are Strong

Costco stock has been exploding since establishing lows in early 2009. The stock keeps going and going and is now trading near all-time high prices. 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, Costco is trading above its rising key averages, which signal neutral to bullish price action in the near term.

COST

(Source: Thinkorswim)

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

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

Costco Options

17.43%

3%

0%

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 past 30 and 90 trading days.

Put IV Skew

Call IV Skew

August Options

Flat

Average

September Options

Flat

Average

As of Thursday, there is 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.

E = Earnings Are Rising 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 Costco’s stock. What do the last four quarterly earnings and year-over-year revenue growth figures for Costco 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)

18.18%

37.78%

30.14%

29.13%

Revenue Growth (Y-O-Y)

4.86%

8.29%

9.65%

14.34%

Earnings Reaction

-0.94%

1.27%

-0.60%

1.92%

Costco has seen rising earnings and revenue figures over the past four quarters. From these numbers, the markets have been optimistic about Costco’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Costco stock done relative to its peers Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Pricesmart (NASDAQ:PSMT), and sector?

Costco

Wal-Mart

Target

Pricesmart

Sector

Year-to-Date Return

16.36%

13.60%

22.41%

14.99%

15.86%

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

Conclusion

Costco is a warehouse chain that sells large and bulk items to consumers looking to save an extra few bucks. The stock has been on an explosive run and is now trading at all-time high prices. Over the past four quarters, earnings and revenue figures have been on the rise, leading to optimistic investors in the company. Relative to its peers and sector, Costco has been a year-to-date performance leader. Look for Costco to continue to OUTPERFORM.

Saturday, April 26, 2014

Why M/I Homes Fell Flat Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of M/I Homes (NYSE: MHO  ) fell as much as 10% today after the company released earnings.

So what: Revenue jumped 37%, to $234.6 million, in the second quarter, and net income nearly doubled, to $6.05 million, or $0.25 per share. But analysts were expecting $258 million in revenue, and earnings of $0.36 per share, so results were still behind estimates. 

Now what: Disappointing results were a theme for homebuilders today, and investors and analysts may have gotten ahead of themselves in expectations for the housing recovery. To make matters worse, interest rates are up, and buyers will be pressured by higher mortgage costs, which could suppress sales going forward. M/I Homes still trades at just nine times forward estimates and is seeing strong growth, so I don't think this report is reason to panic. It may, however, be time to lower expectations a bit for the industry.

Interested in more info on M/I Homes? Add it to your watchlist by clicking here.

Friday, April 25, 2014

Yandex: Time to Catch a Falling Knife (YNDX)

To say the last three months have been tough ones for Russian search engine company Yandex NV (NASDAQ:YNDX) would be an understatement. Since the January the January 9th peak of $45.42, YNDX has fallen more than 50%, hitting a low of $21.70 today. Ouch.

As the cliche goes, however, it's always darkest just before down. In stock parlance, it just means that the time to buy into a stock is when it looks like nobody else wants it. Yandex is no exception to that norm, and given the shape and context of today's drubbing, it does indeed look like YNDX is a speculative buy. How's that? Because today looks like a major capitulation for the stock... the point where things literally can't get any worse, starting the transition from a net-selling environment to a net-buying one.

There are three inter-related clues pointing to that end. One of them is the fact that YNDX shares have just been blasted since January, yet still somehow the bears were able to muster a bearish gap this morning. The market doesn't like to leave gaps behind, however, so there's apt to be a lot of bullish pull beginning today.

The second clue that today's action is a pivotal, blowout day is the volume spike. A lot of people are getting in, and a lot of people are getting out. Either way, it points to the same transition from a net-bearish environment to a net-bullish one.

The third and final clue? The shape of today's bar. The open was at the high, then we saw a deep low, and then we saw a very strong push off that low to at least get back to the upper half of today's trading range. It's not a perfect dragonfly doji - a sign of reversal - but it's a pretty good sign, especially knowing how ripe Yandex NV shares are following the steep selloff, and in the shadow of a big bearish gap at today's open. In other words, this really does look like a blowout/capitulation day.

Yes, there's still plenty of risk here as there's still plenty of opportunity for the market to keep chipping away at YNDX. From an odds-making perspective though, today's a good opportunity to take a smart calculated risk on Yandex.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.

Thursday, April 24, 2014

Get Ready for More Advertising Inside Your Car

One trend you should be aware of as an investor is that of the "connected car." Your vehicle can connect with the outside world through a dedicated modem, or -- increasingly these days -- through your smartphone.

At the recent Connected Car Conference in New York City, Roger Lanctot of Strategy Analytics spoke about the role of smartphones and modems in the vehicle: Besides entertainment, they can help sell cars, route motorists, and facilitate commerce through various payment options for tolls, parking, and more. And -- done properly -- a connected car can save lives and make driving safer.

Ford (NYSE: F  ) , General Motors (NYSE: GM  ) and Tesla (NASDAQ: TSLA  ) each have different approaches to this technology. But as Roger explains to Motley Fool analyst Rex Moore in the following video. they all will eventually monetize the connected car in a similar fashion -- through advertising.

Meanwhile, overseas ...
China is already the world's largest auto market -- and it's set to grow even bigger in coming years. A recent Motley Fool report, "2 Automakers to Buy for a Surging Chinese Market," names two global giants poised to reap big gains that could drive big rewards for investors. You can read this report right now for free -- just click here for instant access.

New Homeowner Bailouts Again Send the Wrong Message

Millions of Americans lost tens or even hundreds of thousands of dollars of net worth during the housing bust, as the value of their homes plunged. Yet as well-intentioned as government initiatives are in trying to address the financial impact of the mortgage crisis, the newest program to help struggling mortgage borrowers seems to encourage exactly the behavior you'd want homeowners to avoid.

More options for delinquent homeowners
On July 1, the Federal Housing Finance Agency's Streamlined Modification Initiative (link opens PDF file) took effect. As FHFA Acting Director Edward DeMarco said back in March when the initiative was first announced, the "new option gives delinquent borrowers another path to avoid foreclosure."

Under the program, eligible homeowners who are 90 days or more behind on their mortgage payments will automatically receive an offer that includes a reduced mortgage payment based on a fixed interest rate. Payment terms will be extended to 40 years, and for some of those who owe more on their loans than their homes are currently worth, the program will provide limited reductions of the amount of principal they owe on their mortgages.

The FHFA hopes that this program will succeed where others have failed. In particular, because the Streamlined Modification Initiative doesn't require homeowners to complete an application or provide evidence of financial hardship, the agency is optimistic that more eligible homeowners will participate than have used similar programs in the past.

Will the FHFA catch strategic defaults?
The danger with the new program, though, is that it provides no incentives for homeowners who've kept current on their payments. Indeed, it arguably gives homeowners a reason to stop making mortgage payments in the hope that by doing so, they'll become entitled to favorable benefits that wouldn't otherwise be available to them.

Indeed, previous programs designed to help homeowners avoid foreclosure raised similar concerns about moral hazard. Back in 2009, the earliest attempts to provide for mortgage loan modifications resulted in far fewer benefits than expected, because the banks involved chose not to grant modification in many cases. Wells Fargo (NYSE: WFC  ) and Bank of America (NYSE: BAC  ) were among the slowest of the big banks to modify loans early in the program's existence, moving forward with just 4% to 6% of eligible mortgages within the first half-year or so of the program. Even giving lenders incentives to modify loans didn't keep bankers from concluding that they'd often be better off not modifying and counting on homeowners to find ways to cure their delinquent loans without a modification. In other words, banks chose not to reward their customers automatically for being late and seeking assistance.

To its credit, FHFA specifically addresses the moral hazard involved in the Streamlined Modification Initiative. The agency notes that "because many borrowers who miss one or two payments have a temporary hardship and often reinstate their mortgage to current status, it is most effective to target borrowers who are at least 90 days delinquent." Moreover, in its efforts to curb abuse of the program, the FHFA notes that Fannie Mae (NASDAQOTCBB: FNMA  ) and Freddie Mac (NASDAQOTCBB: FMCC  ) , which the FHFA oversees, have "existing proprietary screening measures to prevent strategic defaulters from taking advantage of a Streamlined Modification."

Still, the danger with this program is the same as with past attempts to help potential victims of foreclosure: It's hard to help deserving homeowners while avoiding giving unneeded help to those who are simply trying to game the system. In particular, principal reduction introduces a whole new element to moral hazard, as the government has to consider the costs that Fannie and Freddie have to bear under total-default scenarios compared to the more limited costs of principal reduction. According to projections by the Congressional Budget Office (link opens PDF file), extending principal forgiveness under another program, the Home Affordable Modification Program, could result in net decreases in the budget deficit of between $2.2 billion and $2.8 billion. Yet the CBO analysis acknowledges that strategic defaults would lead to cost reductions that would be "less than costs would fall if borrowers whose modifications were costly could be excluded." Moreover, because HAMP involved having to document financial hardship, the potential for gamesmanship in the Streamlined Modification Initiative is arguably more substantial.

Is there no solution?
In the end, any government program will struggle to identify those who most need help. Rather than focusing on decisions within homeowners' control, such as becoming late on payments, programs should choose objective criteria that limit manipulation and truly find those in need.

These mortgage issues still make many investors scared to invest in big banking stocks, but the sector has one notable standout. Find out what it is in our free report "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves by clicking here to access it now.

Wednesday, April 23, 2014

Best Communications Equipment Stocks To Watch Right Now

Popular Posts: 9 Biotechnology Stocks to Buy Now3 Communications Equipment Stocks to Buy Now4 Pharmaceutical Stocks to Buy Now Recent Posts: 17 “Triple A” Stocks to Buy 17 “Triple A” Stocks to Buy 17 “Triple A” Stocks to Buy View All Posts

This week, 17 stocks get A’s (“strong buy”) in Portfolio Grader‘s three main grading categories, Total Grade, Overall Fundamental Grade and Quantitative Grade.

These are the best of the best in the entire Portfolio Grader database. This week, there are 4,292 stocks and only these 17 get top marks in all categories to make the elite “Triple A” stocks list. Here they are:

Best Communications Equipment Stocks To Watch Right Now: Audience Inc (ADNC)

Audience, Inc., incorporated on May 24, 2011, is a provider of voice and audio solutions that improve voice quality and the user experience in mobile devices. The Company�� solutions include hardware-accelerated digital signal processors (DSPs), and audio codecs and associated algorithms for noise suppression in mobile devices. Its computational auditory scene analysis (CASA) maps the sound separation functions in human hearing, into a computational framework. The Company�� platform consists of its DSPs and audio codec, analog and mixed signal circuits and algorithms for voice isolation and noise suppression.

The Company also provides its AuViD graphical design tools to original equipment manufacturers (OEMs). The Company had sold over 250 million processors to its OEM customers as of December 31, 2012. In addition to the mobile device market, the Company�� voice and audio technology is also applicable to a range of other market segments, including automobile infotainment systems, digital cameras, digital televisions, headsets and set top boxes.

The Company�� product portfolio supports both analog and digital interfaces. As of December 31, 2012, the Company offered eS515, eS325, eS305, eS310, eS110, A1028 and A1026 custom voice and audio processors for device platforms, including smartphones, feature phones and media tablets. eS515 is a third generation voice and audio processor with an integrated audio codec, featuring support of three-microphones; eS325is a third generation voice and audio processor that features simultaneous three microphone processing; eS305 is a second generation voice and audio processor utilizing new hardware acceleration architecture and algorithms for far-field, wideband communications and capable of advanced speech recognition assist, and uses an all digital interface; eS310, provides similar capabilities to the eS305; eS110 is a first generation narrowband voice processor designed for real-time communications and far-field as well as near-field u! se with features such as acoustic echo cancelation, voice equalization and automatic gain control; A1026, is a first generation narrowband voice processor designed for real-time communications and typical near-field use, and A1028, which is a first generation narrowband voice processor designed for real-time communications and far-field, as well as near-field use.

The Company derives its revenue primarily from the sale of voice and audio processors to OEMs, which incorporate them into mobile devices. As of December 31, 2012, OEMs, CMs and distributors worldwide had purchased more than 250 million of its processors and incorporated them in over 140 mobile device models.

The Company competes with Maxim, ON Semiconductor, Qualcomm, Texas Instruments Incorporated, Wolfson Microelectronics plc, DSP Group, Inc. and Yamaha Corporation.

Advisors' Opinion:
  • [By Seth Jayson]

    Calling all cash flows
    When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Audience (Nasdaq: ADNC  ) , whose recent revenue and earnings are plotted below.

Best Communications Equipment Stocks To Watch Right Now: LifeLock Inc (LOCK)

LifeLock, Inc., incorporated on April 12, 2005, is a provider of proactive identity theft protection services for consumers and identity risk assessment and fraud protection services for enterprises. It operates in two segments: consumer segment and an enterprise segment. In its consumer segment, the Company offer identity theft protection services to consumers on a monthly or annual subscription basis. In its enterprise segment, it offer identity risk assessment and fraud protection services to enterprise customers who pay the Company based on their monthly volume of transactions with it. It protects its consumer subscribers, whom it refers to as its members, by monitoring identity-related events, such as new account openings and credit-related applications. It also provides remediation services to its members in the event that an identity theft actually occurs. On March 14, 2012, the Company acquired ID Analytics, Inc. In December 2013, the Company announced that it has completed the acquisition of Lemon Inc.

Consumer Business

The Company protects its members by proactively monitoring identity-related events, such as new account openings and credit-related applications, which may present a risk of identity theft. If it detects that a member�� personally identifiable information is being used, the Company sends notifications and alerts, including proactive, near real-time, actionable alerts, to the member via text message, phone call, or e-mail through its LifeLock Identity Alert system that allows the member to confirm valid or unauthorized identity use.

Enterprise Business

The Company delivers on-demand identity risk assessment and authentication information about consumers to its enterprise customers in their daily transaction flows. Its enterprise customers utilize this information in real time to authenticate their customers, assess their risk profile, and enhance the enterprise�� decision making process on which to base account opening, le! nding, credit, and other risk-based decisions. By integrating its services into their business processes, its enterprise customers can reduce potential financial losses from identity fraud. Information generated from the transaction flow at its enterprise customers is transmitted back to its data repositories, which continually enhances the LifeLock ecosystem and helps strengthen the services the Company can provide to its customers in the future.

The Company competes with Experian, Equifax, TransUnion, Affinion, Early Warning Systems, Intersections and LexisNexis.

Advisors' Opinion:
  • [By Rick Munarriz]

    LifeLock (NYSE: LOCK  ) is the leading provider of identity theft monitoring for consumers. This may seem like a finicky model for a subscription service, but LifeLock has come through with 34 consecutive quarters of sequential growth in revenue and members.

  • [By Lee Jackson]

    LifeLock Inc. (NYSE: LOCK) is a top small cap name to buy that may hold big gains for investors. The company is a leader in identity-theft protection systems and crushed its recent earnings estimates. Deutsche Bank has an $18 target, and the consensus target is $15.50. A move to the Deutsche Bank target would be a gain of 50% for investors.

Top 5 Income Stocks To Watch Right Now: Fabrinet (FN)

Fabrinet, incorporated on August 12, 1999, provides optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (OEMs) of complex products, such as optical communication components, modules and sub-systems, industrial lasers and sensors. The Company offers a range of optical and electro-mechanical capabilities across the entire manufacturing processes, including process design and engineering, supply chain management, manufacturing, advanced packaging, final assembly and test.

The products that the Company manufactures for its OEM customers includes optical communications devices, such as selective switching products, such as reconfigurable optical add-drop modules (ROADMs), optical amplifiers, modulators and other optical components and modules that collectively enable network managers to route signals through fiber traffic at various wavelengths and over various distances; tunable transponders and transceivers that eliminate the need to stock individual fixed wavelength transponders and transceivers used in voice and data communications networks; and active optical cables providing high-speed interconnect capabilities for data centers and computing clusters, as well as Infiniband, Ethernet, fiber channel and optical backplane connectivity.

Solid state, diode-pumped, gas and fiber lasers (industrial lasers) used across a array of industries, including semiconductor processing (wafer inspection, wafer dicing, wafer scribing), biotechnology (DNA sequencing, flow cytometry, hematology, antibody detection), metrology (instrumentation, calibration, inspection), and material processing (photo processing, textile cutting, annealing, marking, engraving); and sensors, including differential pressure, micro-gyro, fuel and other sensors that are used in automobiles, and non-contact temperature measurement sensors for the medical industry. The Company also designs and fabricates application-specific crystals, pri! sms, mirrors, laser components and substrates (customized optics) and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products (customized glass).

The Company competes with Sanmina-SCI Corporation, Celestica Inc., Venture Corporation Limited, Benchmark Electronics, Inc, Browave Corporation, Fujian Castech Crystals, Inc., Research Electro-Optic, Inc. and Photop Technologies, Inc.

Advisors' Opinion:
  • [By Seth Jayson]

    Calling all cash flows
    When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Fabrinet (NYSE: FN  ) , whose recent revenue and earnings are plotted below.

Best Communications Equipment Stocks To Watch Right Now: Nokia Oyj (NOK1V)

Nokia Oyj is a Finland-based company engaged in the manufacture of mobile devices and networks. It operates three business segments. Devices & Services segment is divided into two areas, Smart Devices, focused on Nokia�� advanced products, such as smart phones, product development and marketing; and Mobile Phones, active in the area of mass market entry and feature phones, affordable smart phones, services, and applications. It also includes net sale of spare parts. Location & Commerce (HERE) segment develops location-based products and services for consumers, as well as platform services and local commerce services for the Group. Additionally, it provides content and map data to NAVTEQ�� customers. Nokia Siemens Networks segment provides a portfolio of mobile, fixed and converged network technology, and professional services, such as consultancy, systems integration, deployment and maintenance. In August 2013, it acquired Siemens AG's whole stake in Nokia Siemens Networks. Advisors' Opinion:
  • [By Adam Ewing]

    A sale would provide the shareholders with cash, while potentially strengthening DNA against larger rivals Elisa Oyj (ELI1V) and TeliaSonera AB. (TLSN) The IPO could be the biggest in Finland, home of Nokia Oyj (NOK1V) and ��ngry Birds��maker Rovio Entertainment Oy, since 2005.

  • [By Caroline Chen]

    Activist funds generally acquire equity stakes in companies and try to force management and boards to make changes that boost share prices and investor returns. New York-based Third Point was founded by Loeb and this year disclosed stakes in companies including Sony, Nokia Oyj (NOK1V) and Sotheby��.

Best Communications Equipment Stocks To Watch Right Now: ADVA Optical Networking SE (ADV)

ADVA Optical Networking SE is a Germany-based company that develops, manufactures and sells optical and Ethernet-based networking solutions to telecommunications carriers and enterprises to deploy, manage and deliver data storage, voice and video services in metropolitan areas. Its optical transmission solutions are based on wavelength division multiplexing (WDM) technology. Its Ethernet-optimized transmission solutions for fiber- or copper-based lines are used to provide access for enterprises into a carrier's network. Its systems are used by telecommunications services providers, companies, universities and government agencies worldwide. It sells its product portfolio both directly and through an international network of distribution partners. Its optical and Ethernet-based network solutions have been deployed by more than 250 carriers and more than 10,000 enterprises. As of December 31, 2012, the Company had 13 wholly owned subsidiaries across Europe, Asia, North and Latin America. Advisors' Opinion:
  • [By Adrian Day]

    Adrian Day: Yes, yes, I like the concept of looking up the secondary plays. I mean, you know we own Altius (ALS) for example, rather than Alderon (ADV). Altius owns 30% of Alderon, that is more diversified, has a better balance sheet. If Alderon succeeds, Atius will succeed.

Best Communications Equipment Stocks To Watch Right Now: Revolution Lighting Technologies Inc (RVLT)

Revolution Lighting Technologies Inc., incorporated on December 16, 1993, designs, manufacture, market and sells commercial grade, light emitting diode (LED) replacement light bulbs and LED-based signage, channel letter and contour lighting products. The Company sells these products under the Seesmart, Array Lighting and Lumificient brand names. The Company operates in two segments: LED replacement lamps and fixtures and LED signage and lighting strips. On December 20, 2012, the Company acquired Seesmart Technologies, Inc., headquartered in Simi Valley, California. In August 2013, the Company announced that it has completed the acquisition of Relume Technologies (Relume). In October 2013, the Company announced that it has acquired a portfolio of general illumination LED lighting products, including several product lines from CMG Energy Solutions (CMG). In November 2013, the Company acquired Tri-State LED.

The Company�� LED replacement lamps and fixtures segment include the Seesmart business and the Array business, which has been integrated with the Seesmart business. The LED signage and lighting strips segment is comprised of the Lumificient business.

Advisors' Opinion:
  • [By Paul Ausick]

    Big Earnings Movers: The Walt Disney Co. (NYSE: DIS) is up 2.1% at $68.58 on a good showing for its films but not so much for its TV programming. Molycorp Inc. (NYSE: MCP) is up 1.8% at $4.85 after offering a weakish outlook. Revolution Lighting Technologies Inc. (NASDAQ: RVLT) is up 21.5% at $3.28 after a strong report and reaffirmed solid outlook.

Best Communications Equipment Stocks To Watch Right Now: WiLan Inc (WILN)

WiLAN Inc. (WiLAN), incorporated on May 14, 1992, is a licensing company. WiLAN develops, acquires, and licenses a range of intellectual property that drives products in communications and consumer electronics markets. Through both internal research and development and acquisitions from third parties, the Company has acquired intellectual property in the form of patents and patent applications in many countries that it has licensed to more than 255 companies in telecommunications markets around the world. As of December 31, 2011, WiLAN had a portfolio of approximately 3,000 patents, including issued and pending patents and foreign equivalents. WiLAN has five directly wholly-owned subsidiaries, Wi-LAN Capital Inc. (WiLAN Capital), Wi-LAN International Inc. (WiLAN International), Wi-LAN International Hong Kong Inc. (WiLAN Hong Kong), Wi-LAN International Japan Inc. (WiLAN Japan) and Wi-LAN International Taiwan Inc. In July 2012, it acquired a global portfolio of more than 40 patents and applications from Siemens AG related to telecommunication network management and mobile multimedia. In October 2012, the Company acquired a global portfolio of more than 150 patents and patent applications from Alvarion Ltd. In June 2013, WiLan Inc acquired a portfolio of patents from Cypress Semiconductor Corporation. In November 2013, the Company acquired a portfolio of semiconductor patents from IXYS CH GmbH related to microcontroller technology.

In the Company's licensing business, the Company has signed licenses with companies that sell products utilizing technologies, including CDMA (Code Division Multiple Access-a cellular telecommunications specification); Wi-Fi (the underlying technology of wireless local area networks based on various IEEE 802.11 specifications); WiMAX (Worldwide Interoperability for Microwave Access-a standards-based broadband wireless technology that provides metropolitan area network connectivity based on IEEE 802.16 specifications); LTE (Long Term Evolution-high performance air! interface for cellular mobile communication systems designed to increase the capacity and speed of mobile telephone networks), and ADSL (Asymmetric Digital Subscriber Line-a standards-based access technology that provides broadband Internet access over twisted pair telecommunications wiring). The Company has also signed licenses with companies that sell products utilizing technologies, including DOCSIS (Data Over Cable Service Interface Specifications-a standards-based access technology that provides broadband Internet access over cable networks); Bluetooth (a wireless protocol for exchanging data over short distances between fixed and mobile devices), and V-Chip (a technology that permits the blocking of television programs at a receiver (such as a television, multi-media equipped personal computer or set-top box) by viewers based on ratings information carried on the television signal).

Advisors' Opinion:
  • [By Monica Gerson]

    Breaking news

    Wi-LAN (NASDAQ: WILN) today announced that its Board of Directors has initiated a process to explore and evaluate a broad range of strategic alternatives for the Company to enhance shareholder value. To read the full news, click here. MannKind (NASDAQ: MNKD) today announced that the U.S. Food and Drug Administration (FDA) has acknowledged the resubmission of a New Drug Application (NDA) for AFREZZA庐 (insulin human [rDNA origin]) Inhalation Powder. To read the full news, click here. lululemon athletica (NASDAQ: LULU) today announced that Tara Poseley has been appointed to its Senior Leadership Team as Chief Product Officer. To read the full news, click here. Nice Systems (NASDAQ: NICE) reported a drop in its third-quarter profit. To read the full news, click here.

    Posted-In: Bank of America FOMC US Stock FuturesNews Eurozone Futures Pre-Market Outlook Markets

  • [By Rich Duprey]

    Often accused of being a patent troll,�non-performing entity�WiLAN� (NASDAQ: WILN  ) wrangled a settlement out of Dell (NASDAQ: DELL  ) with details of the deal remaining confidential.

Best Communications Equipment Stocks To Watch Right Now: TomTom NV (OEM)

TomTom NV is a Netherlands-based supplier of location and navigation products and services. The Company�� structure consists of four customer facing business units, namely Consumer, Automotive, Business Solutions and Licensing. The first three business units provide targeted solutions for the Company�� customers, including private consumers, car manufacturers and fleet owners. Licensing sells its content and services to multiple customer groups including portable navigation devices (PNDs) and wireless companies, governments and enterprises. The Company�� business units embed 11 product units, such as digital maps, traffic intelligence, navigation software, PNDs, automotive systems, fleet management services (FMS), smart phone applications, sports watches, points of interest, location based services (LBS) and speedcam intelligence. As of December 31, 2011, the Company was active in 35 countries. In July 2013, it acquired Coordina (Gestion Electronica Logistica, S.L.). Advisors' Opinion:
  • [By victorselva]

    In a macro view, revenues in the electronic equipment and instrument sub-industry will remain strong due to the rise in equipment and instrument manufacturers. Distributors, electronic manufacturing service (EMS) companies and original equipment manufacturers (OEM) are going to increase orders as the economy improves in the future. With this promising outlook, let's take a look at Gabelli麓s last trade and try to explain to investors the reasons of this appealing investment opportunity.

Best Communications Equipment Stocks To Watch Right Now: Alcatel Lucent SA (ALU)

Alcatel Lucent, incorporated on June 18, 1898, is engaged in mobile, fixed, Internet Protocol (IP) and Optics technologies, applications and services. The Company is a partner of service providers, enterprises, industries and governments worldwide. Alcatel-Lucent includes Bell Labs centres of research in communications technology. Its operations are in more than 130 countries. The Company operates in three business segments: networks, applications, and services. On December 31, 2010, the Company completed the sale of its Vacuum pump solutions and instruments business to Pfeiffer Vacuum Technology AG. In September 2010, the Company acquired OpenPlug, a mobile software and applications development tools vendor. In June 29, 2010, the Company acquired ProgrammableWeb.

During 2010, the Company launched the Digital Media Store, a multicontent digital storefront that allows service providers to deliver content to end-users. Launched during 2010, Optism is a permission-based mobile marketing solution. During 2010, it launched Alcatel-Lucent�� Mobile Wallet Service (MWS), which allows the mobile operator to leverage its secure network to deliver a mobile payment capability through a mobile handset. During 2010, it also launched Alcatel-Lucent�� Application Exposure Suite to facilitate the development of new services by third-party application developers and content providers.

Networks Segment

The Networks segment supplies a portfolio of products and offerings used by fixed, wireless and converged service providers, as well as enterprises and governments for their business communications. The Company�� IP portfolio consists of four product families that deliver multiple services, including broadband triple play for residential customers; Ethernet and IP Virtual Private Network (VPN) services for Enterprise customers, and wireless second-generation (2G), third-generation (3G) and long term evolution (LTE) broadband services for mobile operators. The main product fami! lies include Internet Protocol/Multiprotocol Label Switching (IP/MPLS) service routers, Carrier Ethernet service switche, Multi-service wide-area-network (or MS WAN) switches and Content Delivery Network (CDN) appliances.

Internet Protocol/Multiprotocol Label Switching (IP/MPLS) service routers direct traffic within and between carriers��national and international networks to enable delivery of a range of IP-based services (including Internet access, Internet Protocol TV (IPTV), Voice over IP (VoIP), mobile phone and data, and managed Enterprise VPN services) on a single common network infrastructure with superior performance, with application intelligence, and with scalability (such as the simultaneous support of many diverse types of traffic and customers); Carrier Ethernet service switches. Carrier Ethernet service switches enable carriers to deliver residential, business and wireless services, and these products are mainly used in metropolitan area networks; Multi-service wide-area-network (MS WAN) switches. Multi-service wide-area-network (MS WAN) switches enable fixed line and wireless carriers to transition their existing networks to support newer technologies and services, and Content Delivery Network (CDN) appliances. Content Delivery Network (CDN) appliances distribute and cache (store) Web and video content.

The Company�� Internet Protocol/Multiprotocol Label Switching (IP/MPLS) and Carrier Ethernet products are designed to facilitate the development and availability of applications for the more participatory and interactive Web 2.0 business and consumer services. Its service routers are particularly well suited to deliver complex services to business, residential and mobile end-users. Its IP/MPLS service routers and Carrier Ethernet service switches are often used in conjunction with its DSL and Gigabit Passive Optical Network (GPON) access products to deliver these newer triple-play services, or with its wireless access products to deliver LTE solutions, or w! ith its D! ense Wave Division Multiplexing (DWDM) and optical switching products to deliver converged backbone transformation solutions for optimizing IP transport. Its Optics division designs and markets equipment for the long distance transportation of data over fiber optic connections via land (terrestrial) and under sea (submarine), as well as for short distances in metropolitan and regional areas.

The Company�� transport portfolio also includes the microwave wireless transmission equipment. Its terrestrial optical products offer a portfolio designed to seamlessly support service growth from the metro to the network core. With its products, carriers manage voice, data and video traffic patterns based on different applications or platforms and can introduce a range of managed data services, including multiple service quality capabilities, variable service rates and traffic congestion management. These products allow carriers to leverage their existing network infrastructure to offer these new services. Its submarine cable networks can connect continents (using optical amplification required over long distances), a mainland and an island, several islands together, or many points along a coast. It offers a portfolio of point-to-point microwave radio products meeting both European telecommunications standards (ETSI) and American standards-based (ANSI) requirements.

The Company�� Wireless All Around message developed during 2010 is a combination of wireless and IP products. The version of CDMA technology, known as 1X EV-DO Revision A, enables operators to offer two-way, real-time, high-speed data applications, such as VoIP, mobile video, push-to-talk and push-to-multimedia. The introduction of High Speed Packet Access (HSPA) and HSPA+ (the latest evolutions of W-CDMA technology) on networks and devices has led to increases in data speeds available to broadband devices. The Company develops mobile radio products for the second generation (2G) Global System for Mobile communications (GS! M) standa! rd, including General Packet Radio Service / Enhanced Data Rates for GSM Evolution (GPRS/EDGE) technology upgrades to that standard.

LTE offers service providers a compelling evolution path from all existing networks (GSM, W-CDMA, CDMA or WiMAX) by simplifying the radio access network and converging on a common IP base. RFS designs and sells cable, antenna, tower systems and their related electronic components, providing an end-to-end suite of radio frequency products. RFS serves original equipment manufacturers (OEMs), distributors, system integrators, network operators and installers in the broadcast, wireless communications, microwave and defense sectors. Specific applications for RFS products include cellular sites, in-tunnel and in-building radio coverage, microwave links, television and radio. The Company offers products that extend from legacy switching systems to IP multimedia subsystem (IMS) solutions for fixed, mobile, and converged operators. It has deployed its next-generation network (NGN) products in more than 170 fixed NGN networks, and it has provided the core network for more than 66 full IMS fixed and mobile networks. Its fixed access solutions allow carriers to offer triple-play services over a single access line. Its carrier customers are offering both residential and business customers multiple services, such as a number of broadcast channels, video on demand, high definition television (HDTV), VoIP, high speed Internet, and business access services.

Applications Segment

The Applications segment develops software-based applications and solutions that contribute to the personal communications for users. The Applications group is divided into two businesses: Enterprise Applications and Network Applications. The Enterprise Applications business includes its IP-based communications and collaboration applications for enterprises, including the Genesys contact center business. The Network Applications business develops applications used by service pr! oviders t! o deliver a range of services to their customers, and also includes Motive, which provides software for service providers to remotely manage their customers��at-home networks, networked devices and broadband and mobile data services. During the year ended December 31, 2010, its Applications segment accounted 12% of its total revenue.

The Applications segment is investing resources in next generation collaboration and communications systems offered by its Enterprise Applications division; customer contact, customer engagement and service management areas addressed by its Genesys and Motive businesses; carrier applications, such as communication and messaging, next-generation telephony, digital media and multi-screen delivery of content and personalized advertising, device agnostic location based address book services, and technologies, such as Long Term Evolution (LTE), IP multimedia subsystem (IMS), and Application Enablement.

Services Segment

The Services segment is focused in helping the service provider and customers realize the potential of media, information technology (IT) and telecommunications services and technologies. These services address the lifecycle of its customers��networks and operations, and encompass business consulting, systems design and integration, maintenance and managed services. The service offerings are organized around four areas: network and system integration, managed and outsourcing solutions, multi-vendor maintenance, and product-attached services.

The Company competes with Avaya, Cisco Systems, Ericsson, Fujitsu, Huawei, ZTE and Nokia Siemens Networks.

Advisors' Opinion:
  • [By Jon C. Ogg]

    24/7 Wall St. wanted to stack Cisco up against peers such as Alcatel-Lucent, S.A. (NYSE: ALU) and Juniper Networks, Inc. (NYSE: JNPR). We also wanted to see what the analyst community is saying now that the dust is settling. Cisco trades at under 11-times forward earnings and 2.5-times expected sales now. With cash still growing, it now has close to $48 billion in cash that can be used for share buybacks, dividends, and acquisitions.

  • [By Monica Gerson]

    Breaking news

    NASDAQ OMX Group (Nasdaq: NDAQ) and Borsa Istanbul A.S. have today concluded a wide-ranging agreement, which includes the delivery of market-leading technologies and advisory services to Borsa Istanbul, and NASDAQ OMX taking an equity stake in Borsa Istanbul. To read the full news, click here. Acacia Research (NASDAQ: ACTG) announced today that its Bolt MRI Technologies LLC subsidiary has entered into an agreement with Fonar Corporation (NASDAQ: FONR). To read the full news, click here. Douglas Emmett, (NYSE: DEI) announced that William Kamer will be retiring from full time service as its Chief Investment Officer effective January 31, 2014. Mr. Kamer will continue to be employed by Douglas Emmett as a Senior Advisor. To read the full news, click here. Acacia Research (NASDAQ: ACTG) announced today that its Brandywine Communications Technologies LLC subsidiary has entered into a settlement and patent license agreement with Alcatel-Lucent USA (NYSE: ALU). To read the full news, click here.

    Posted-In: Benchmark US Stock FuturesNews Eurozone Futures Global Pre-Market Outlook Markets

Best Communications Equipment Stocks To Watch Right Now: Ubiquiti Networks Inc (UBNT)

Ubiquiti Networks, Inc. (Ubiquiti), incorporated on June 24, 2010, is a communications technology Company. designs, manufactures and sells broadband wireless solutions worldwide. The Company offers a portfolio of wireless networking products and solutions, including systems, high performance radios, antennas and management tools, designed for wireless networking and other applications in the unlicensed radio frequency (RF) spectrum. The Company offers solutions that incorporate its RF technology, antenna design and firmware technologies, which it refers to as AirTechnologies. It offers a portfolio of communications networking products and solutions and it recently introduced products in the video surveillance, wireless backhaul and machine-to-machine communication markets.

The Company�� business is driven by a community of network operators, service providers, distributors, value added resellers (VARs) and system integrators, which it refers to as the Ubiquiti Community. As of June 30, 2013, Ubiquiti�� AirTechnologies included, UBNT, airMAX, UniFi, mFi, EdgeMAX, airVision, airFiber, airOS, NanoStation, airGrid, NanoBridge, and a number of trademark applications and registrations in the United States and other countries. The Company technology enables it to provide end to end wireless networking solutions for network operators and service providers in underserved and underpenetrated markets. It designs its products and solutions using hardware and industry standard chipsets to enable these providers to deliver carrier class wireless broadband access and services to their subscribers.

Enterprise WLAN - UniFi

Unifi hardware utilizes MIMO technology, works with 802.11 standards, and uses a single cable for data transmission and power-over-ethernet. Unlike other enterprise Wi-Fi systems that utilize a hardware Wi-Fi switch, Unifi uses a virtual controller that allows for on-site management or remote management through the cloud. Each UniFi access point a! nd can be managed centrally with the UniFi Controller software. The UniFi Controller enables enterprise WLAN managers to centrally configure and administer a UniFi network and individual access points without any special training and through secure access from any Web browser. The UniFi Controller provides automatic UniFi access point detection, firmware updates, real-time status, map loading and advanced security options.

Video Surveillance - airVision

The H.264 cameras use a single cable for data transmission and power-over-ethernet. AirVision, its management controller software, can be used to manage multiple AirCam H.264 IP cameras as well as manage other digital video recorder devices. AirVision software is available for download at no cost on its Website and only manages Ubiquiti Network camera devices. Similar to its other network management products, airVision can be accessed securely from any Web browser, provides statistical reporting and analytics and provides a management console with camera settings and event recordings.

Machine-To-Machine Communication - mFi

In June 2012, the Company announced mFi, which includes hardware sensors, power devices, and management software that allows devices to be controlled remotely. For example, mFi allows users to manage and monitor their building temperature and power consumption. The management controller software is IP based and can be accessed from any browser locally or through the cloud. MFi software allows management to create rules using if/then statements to control numerous devices.

The Company competes with Motorola, Trango, Cisco Systems, Proxim, Mikrotikls, Senao, Ceragon Networks, DragonWave, Ruckus Wireless, TP-LINK Technologies CO., LTD, Andrew Corporation, PCTEL, Aruba Networks, Inc, Vivotek, Inc., Axis Communications AB , Mobotix Corp, Cambium Networks , SAF Tehnika, EnergyHub, Inc., AlertMe.com Ltd and Radio Waves Inc.

Advisors' Opinion:
  • [By Tom Bishop]

    The company I have chosen is Ubiquiti (UBNT). By ��ireless networking,��I mean products that deliver carrier-class wireless networking performance for video, voice, and data.

  • [By Roberto Pedone]

    Another technology stock that insiders are active in here is Ubiquiti Networks (UBNT), which develops high-performance networking technology for service providers and enterprises. Insiders are buying this stock into big time strength, since shares are up a whopping 211% so far in 2013.

    Ubiquiti Networks has a market cap of $3.3 billion and an enterprise value of $3.4 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 31.65 and a forward price-to-earnings of 18.48. Its estimated growth rate for this year is 100%, and for next year it's pegged at 13.2%. This is a cash-rich company, since the total cash position on its balance sheet is $279.73 million and its total debt is $74.89 million.

    A director just bought 20,000 shares, or about $737,000 worth of stock, at $36.85 per share.

    From a technical perspective, UBNT is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been trending sideways for the last month and change, with shares moving between $36.30 on the downside and $44.80 on the upside. Traders should keep an eye on shares of UBNT for any high-volume move above the upper-end of its recent range, since that could trigger a big breakout for this stock.

    If you're in the bull camp on UBNT, then I would look for long-biased trades as long as this stock is trending above some near-term support at $36.30 and then once it breaks out above some near-term overhead resistance levels at $39.35 to $40.59 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 905,311 shares. If that breakout triggers soon, then UBNT will set up to re-test or possibly take out its all-time high at $44.80 a share. Any high-volume move above $44.80 will then give UBNT a chance to tag $50 to $55 a share.

Tuesday, April 22, 2014

Pentagon Issues Few New Contracts Tuesday

Continuing to laze its way through summer, the U.S. Department of Defense announced only nine mostly small new contracts Tuesday, totaling just a bit over $87 million in aggregate value. Winners today included:

Lockheed Martin (NYSE: LMT  ) , which was awarded a $53.6 million firm-fixed-price contract to supply the Air Force with six B-2 "line replaceable units, data, material lay-in, and overhaul management." Lockheed will perform task orders under the contract as they are placed, and is expected to continue working on this contract through at least July 2016. The contract may, however, be extended by a two-year option period through July 2018. Lockheed -- again -- this time in the form of its HELLFIRE Systems LLC joint venture with Boeing (NYSE: BA  ) . The HELLFIRE JV was awarded a $7.6 million contract modification to convert HELLFIRE II Romeo Air-to-Ground Missiles to the AGM-114R2 and AGM-114R9E configurations for customers in Australia, Saudi Arabia, and the United Arab Emirates. The Pentagon notes that the cumulative value of the underlying contract here has now passed $873 million. AECOM (NYSE: ACM  ) , URS (NYSE: URS  ) , and two privately held companies, all four of which were awarded the right to compete for $9 million in funds under an indefinite-delivery/indefinite-quantity, firm-fixed-price, multiple-award, foreign-military-sales contract. Under this contract, the winners will bid to complete individual orders to provide "administrative and general management consulting services" to the governments of Australia, Bangladesh, Cambodia, the Maldives, the Marshall Islands, Micronesia, Mongolia, New Zealand, Palau, and Papua New Guinea.

Monday, April 21, 2014

3 Undervalued Companies to Watch This Week

NEW YORK (TheStreet) -- Earnings should be a key driver of any fundamental valuation. This week, a large number of companies will be releasing their quarterly earnings results. Here are three companies found to be undervalued by the ModernGraham valuation model and suitable for either the defensive investor (one who is not willing to undertake substantial research) or the enterprising investor (one who is willing to undertake substantial research).

Freeport-McMoRan Copper & Gold (FCX) is set to release its earnings premarket Thursday, and according to its latest ModernGraham valuation, the company does not pass the requirements of the defensive investor, as it has not consistently paid dividends over the last 10 years, and it has not shown earnings stability over the last 10 years. But it does pass the requirements of the enterprising investor, though it has a higher level of debt relative to current assets than the investor type likes to see.

From a valuation perspective, the ModernGraham valuation is affected significantly by the large earnings loss in 2008, which has caused the EPSmg (normalized earnings) -- EPSmg is a 5 year weighted average of the annual earnings per share figures -- figure for 2009 to be very low in relation to 2013. As it stands, the EPSmg have grown from  a loss of $1.67 to a gain of $3.48, indicating a high level of growth that would appear to significantly outpace the market's implied estimate of 0.45% earnings growth. This has led the model to return an intrinsic value estimate that is well above the market price, and the overall result that the company is undervalued is supported by the valuation based on only 3% growth. If the company can demonstrate earnings greater than cents for the first quarter, this valuation should be even better.

FCX Chart

FCX data by YCharts

Gannett (GCI) is scheduled to release its earnings premarket Wednesday, and in the latest ModernGraham valuation, the company was found to be suitable for Enterprising Investors, after having passed every requirement of the investor type except the debt to current assets requirement. The company does not qualify for defensive investors, however, because of the current ratio being too low, and the lack of earnings stability or sufficient growth over the 10 year period. From purely a valuation standpoint, the company appears undervalued, after growing EPSmg (normalized earnings) from a loss of $6.63 in 2008 to a gain of $1.94 for 2013. This level of growth significantly outpaces the market's current implied estimate of growth (2.70%), and the ModernGraham valuation model indicates a value around $74. If the company beats 44 cents, this valuation will be even higher.

GCI Chart

GCI data by YCharts KLA-Tencor (KLAC) will be releasing its earnings on Thursday after the market closes and according to the latest ModernGraham valuation, it is suitable for the enterprising investor, but is not suitable for the defensive investor. The company has shown insufficient earnings stability and trades at a PB ratio too high for the defensive investor; however, the company passes all of the enterprising investor's requirements. From a valuation side of things, the company appears to be significantly undervalued after growing its EPSmg (normalized earnings) from 45 cents  in 2010 to an estimated $3.65 for 2014. This level of demonstrated growth outpaces the market's implied estimate of 4.81% earnings growth and leads the ModernGraham valuation model to return an estimate of intrinsic value that is well above the market price. If the company can beat $1.07 for the quarter, the valuation will improve further.

KLAC Chart KLAC data by YCharts

At the time of publication the author held no positions in any of the stocks mentioned. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Stock quotes in this article: KLAC, FCX, GCI 

Saturday, April 19, 2014

3 Stocks to Get on Your Watchlist

I follow quite a lot of companies, so the usefulness of a watchlist to me cannot be overstated. Without my watchlist, I'd be unable to keep up on my favorite sectors and see what's really moving the market. Even worse, I'd be lost when the time came to choose which stock I'm buying or shorting next.

Today is Watchlist Wednesday, so I'm discussing three companies that have crossed my radar in the past week -- and at what point I may consider taking action on these calls with my own money. Keep in mind that these aren't concrete buy or sell recommendations, nor do I guarantee I'll take action on the companies being discussed. What I can promise is that you can follow my real-life transactions through my profile and that I, like everyone else here at The Motley Fool, will continue to hold the integrity of our disclosure policy in the highest regard.

With the markets once again near their yearly highs, I'll focus my efforts on three short-sale candidates.

Abercrombie & Fitch (NYSE: ANF  )
If companies were measured by the actions of their CEOs, then Abercrombie's share price should have gone to zero by now.

Abercrombie's CEO, Mike Jeffries, has been nothing short of a circus act for his company, detracting from its actual performance and placing all eyes on his choice words and actions throughout the years. Recently, Abercrombie again had to deal with exclusionary comments Jeffries made with news website Salon in 2006 with regard to how the company would market its product and the type of individual it would prefer to wear its clothing. The result was public outrage and the strong possibility that domestic sales would again suffer at its flagship brands in the interim. 

From a valuation perspective, it's been a while since Abercrombie & Fitch was this inexpensive. At just 12 times forward earnings and paying out a 1.6% yield, Abercrombie does have a brand that could inspire value seekers to take the plunge. As for me, I'd suggest looking for those exists.

Abercrombie's big problem is that it doesn't have a good understanding of the niche middle-class consumer. Aeropostale (NYSE: ARO  ) is among the companies struggling on the low end by having to use big discounts to attract customers because their brand value is lacking. For a while, Aeropostale was able to move enough volume where this wasn't an issue, but it has become a burdensome underperformer since the recession. On the high end, Abercrombie is also struggling because its pricing (and public image) aren't in tune with what customers want despite maintaining good brand value -- not to mention that its push into Europe in the face of austerity measures hasn't been the wisest move. The real winner in teen retail looks like American Eagle Outfitters (NYSE: AEO  ) , which is hitting the sweet spot in terms of price while also maintaining a strong branding presence in stores and online.

If you're looking at teen retailers, consider making the bet against Abercrombie and digging deeper into American Eagle Outfitters.

Hershey (NYSE: HSY  )
That bitter taste in my mouth is Hershey's frothy valuation.

Hershey has been riding high on a wave of lower expenses brought about because sugar prices are at a three-year low. With costs low, Hershey has been able to simply keep pace with inflation on its pricing while keeping its marketing budget at bay and relying on its brand name to drive margin and sales growth. The worry here, though, is that neither sales trends nor sugar prices are going to work in Hershey's favor in the long run.

Despite defying weak global growth trends, the chocolate industry is forecast to be worth a staggering $98.3 billion in 2016. However, that translates to an average growth rate of 3.4% between 2011 and 2016. Hershey's growth rate is a bit faster than that, at roughly 6% per year, but it hardly does justice to a forward P/E of 22 -- thus making a PEG ratio of nearly 4 for a confectioner!

The other concern here is that the U.S. Department of Agriculture plans to purchase excess sugar from domestic manufacturers to curb the surplus and aid sugar prices. That move could quickly eliminate the margin-boosting benefit Hershey has been enjoying over the previous year and may cause investor opinion of this expensive stock to sour.

My suggestion: "Kiss" this stock goodbye.

Frontline (NYSE: FRO  )
Shares of Frontline, a transporter of oil and oil products, as well as coal and iron ore, shot higher earlier this week despite no specific news. Many investors might remember Frontline as a company that paid out a double-digit yield as recently as a few years ago. However, the landscape of the shipping sector has drastically changed, and even at just $2 a share it's no longer the value it once was.

The biggest concern with Frontline is that it's levered its balance sheet to the hilt to take advantage of rising oil prices. It seemed like a solid idea at the time, but plenty of other shippers had the same idea. Now, these same shippers are dealing with very low charter rates and often short-term contract lengths because of the uncertainty associated with commodity prices and demand. Frontline, for instance, has $1.3 billion in net debt and has scraped together only $12 million in positive free cash flow over the trailing 12 months -- hardly enough to maintain a fleet of commodity-transporting vessels.

Unless oil prices soar or China's GDP reverses a two-year downtrend, the survival of Frontline could be in serious question. Worse yet, the company has $225 million in convertible bonds that come due in April 2015 that, as of now, it doesn't have the funds to cover. I would strongly suggest looking into the idea of shorting into any serious strength in Frontline.

Foolish roundup
Is my bullishness or bearishness misplaced? Share your thoughts in the comments section below, and consider following my cue by using these links to add these companies to your free, personalized watchlist to keep up on the latest news with each company:

Add Abercrombie & Fitch to My Watchlist. Add Hershey to My Watchlist. Add Frontline to My Watchlist.

As Abercrombie & Fitch has found out the hard way, the retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only the most forward-looking and capable companies will survive, and they'll handsomely reward investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

3 FTSE Shares Crashing to New Lows

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) has lost 586 points, or 8.5%, since it set a 13-year high of 6,876 on May 22 to reach 6,290 by 10:10 a.m. EDT today. But at least it's nowhere near its 52-week low of 5,415 points.

But even with the FTSE up nicely over the year and a good number of companies doing well, there are still some shares hitting new lows. Here are three from the FTSE indexes that are on a big downer right now.

EVRAZ (LSE: EVR  )
I could have picked any number of mining and commodities companies today, as the whole sector is on a slide, but EVRAZ will suffice as an illustration. The miner and steel-producer has seen its shares fall from about 330 pence in January to a 52-week low today of 117.5 pence.

Full-year results for 2012, released on April 11, revealed a $0.23 per-share loss after revenue fell 10%, but a first-quarter update a week later told us of an 11% recovery in volumes of crude steel and steel products.

This year is still forecast to bring in a small loss, but there's a recovery expected for 2014, and analysts are still expecting dividends to be paid -- with yields of 2.7% and 3% this year and next, respectively.

G4S
G4S shares have had a very erratic year, with the price dropping to a 12-month low of 234 pence today. The shares are on a forward P/E of less than 12 for this year, with a dividend yield of nearly 4% expected.

But after a couple of tough years, who would buy G4S shares at today's price? Well, Bill Gates would: The Microsoft co-founder has taken his stake up to 45 million shares after buying another 6.5 million. He now has a 3.2% interest in the firm.

But before you decide to jump in after Mr. Gates, do remember that he -- well, his charitable foundation, actually -- invested a chunk in the ill-fated JJB Sports.

MITIE (LSE: MTO  )
Management services firm MITIE Group has had a decent couple of years, but the price has slumped this year as write-offs and ballooning debts have damaged confidence. And today, the shares hit a 52-week low of 247 pence.

But even the latest forecasts for the year to March 2014 suggest a small rise in earnings per share, putting the shares on a P/E of 10. And there's a dividend of 11 pence per share expected, which would yield 4.4%. Is this an oversold bargain? Only you can decide that.

What's the best way to deal with share-price falls? One way is to focus on dividends, which can be spent or reinvested, according to your needs. Whether you're investing for income or growth, good old cash is always welcome. And that's why I recommend the brand-new Fool report "The Motley Fool's Top Income Share For 2013," in which our top analysts identify a share they believe will provide handsome dividend income for years to come. The report will be available only for a limited period, so click here to get your copy today.