Ex-dividend dates are very important to dividend investors, since you must purchase a stock prior to its ex-dividend date in order to receive its upcoming dividend payout. For more information, check out Everything Investors Need to Know About Ex-Dividend Dates.
Below we highlight eight big-name stocks going ex-dividend on Tuesday, July 1.
1. Erie IndemnityErie Indemnity (ERIE
JPMorgan Chase (JPM
General Dynamics Corporation (GD
Yesterday, stocks fell despite top-notch economic data. So it only makes sense that stocks rallied today, despite an array of disappointing numbers.
AP The S&P 500 rose 0.5% to 1,959.53, while the Dow Jones Industrial Average advanced 0.3% to 16,867.51. The Nasdaq Composite advanced 0.7% to 4,379.79–its highest close since April 2000–and the small-company Russell 2000 jumped 0.8% to 1,182.68.
Oh, but the news was so, so, disappointing. Today we learned that US GDP contracted 2.9% during the first-quarter, the biggest growth slump since the first quarter of 2009. You might argue that GDP is backward looking–and it most certainly is if we’re still talking about the first quarter near the end of the second–but durable goods orders are much less so, and they fell 1% in May from April.
RBC Capital Markets’ Tom Porcelli notes that the poor GDP number means the U.S. will be stuck growing at a 2% clip–again–in 2014. He explains:
The final analysis on Q1 from our perspective is that this was as much a weather-induced bump in the road as it was the economy hitting the reset button following a 2013 H2 where growth clocked in at an unsustainable 3.3% average. This result creates a very low hurdle for Q2 activity and we marked our best guess a full percentage point higher to closer to 4.5% following the softer Q1. But for all of the sound and fury, what we are left with is US economic growth that over the four quarters ending in Q2 of this year that averaged… wait for it… 2%! Effectively we have been growing at what has been the cyclical speed limit of this expansion. So spelling out the obvious, Q1 is not reality any more than the expected Q2 bounce is reality. And once the dust settles from this noisy H1, economic growth will sit pretty much where it has for the last few years – right around 2%
Still, stocks jumped. And yet, says Capital Economics’ John Higgins
The gains in stock markets over the past five years have obviously made them less attractively valued. But we think there is little evidence of "bubbles".
Take the S&P 500. It has more than trebled since the spring of 2009, driving up the ten year cyclically adjusted price/reported earnings ratio from 12 to 26. This is clearly a big increase. But the ratio has been a lot higher in the past: it topped 44 at the peak of the dot-com bubble. Granted, the ratio is now nearly 70% above its average since 1881, which some would say also constitutes a bubble – just a smaller one. But the ratio is inflated because reported earnings collapsed during the last recession. When these are substituted for operating earnings, and an adjustment is made for changes to firms' payout policy, the degree of overvaluation reduces to a less alarming 30%.
What's more, various factors – such as lower and more stable inflation than in the past – may have raised the equilibrium level of the ratio over time, so the true degree of overvaluation is probably even less. Applying the same changes and comparing the current level of the ratio to its average since 1960 suggests the market is only about 20% overvalued.
Only 20%. Wow. Nearly a bargain.
DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.
>>5 Stocks With Big Insider Buying
Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."
Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.
>>Buy These 5 Rocket Stocks to Beat the Market
With that in mind, let's take a look at several stocks rising on unusual volume recently.
LIN Media
LIN Media (LIN), together with its subsidiaries, operates as a local multimedia company in the U.S. This stock closed up 5.7% at $27.25 in Wednesday's trading session.
Wednesday's Volume: 2.30 million
Three-Month Average Volume: 392,027
Volume % Change: 333%
From a technical perspective, LIN spiked sharply higher here right above its 50-day moving average of $24.93 with heavy upside volume. This move pushed shares of LIN into breakout territory, since the stock took out some key near-term overhead resistance levels at $26.34 to $27. Shares of LIN are now starting to move within range of triggering another big breakout trade. That trade will hit if LIN manages to take out Wednesday's intraday high of $27.60 to some more key overhead resistance at $28.28 to its 52-week high of $29.24 with high volume.
Traders should now look for long-biased trades in LIN as long as it's trending above $26.34 or above $25 and then once it sustains a move or close above those breakout levels with volume that's near or above 392,027 shares. If that breakout kicks off soon, then LIN will set up to enter new 52-week-high territory above $29.24, which is bullish technical price action. Some possible upside targets off that breakout are $33 to $35.
Best Buy
Best Buy (BBY) operates as a multi-national, multi-channel retailer of technology products in the U.S., Canada, China and Mexico. This stock closed up 5.1% at $30.56 in Wednesday's trading session.
Wednesday's Volume: 8.04 million
Three-Month Average Volume: 5.27 million
Volume % Change: 185%
From a technical perspective, BBY ripped sharply higher here right above some near-term support at $28.11 with strong upside volume flows. This spike higher on Wednesday pushed shares of BBY into breakout territory, since the stock took out some near-term overhead resistance at $29.64. This move higher on Wednesday also pushed shares of BBY into its previous gap-down-day zone from January that started just above $36. Market players should now look for a continuation move to the upside in the short-term if BBY manages to take out Wednesday's intraday high of $30.67 with high volume.
Traders should now look for long-biased trades in BBY as long as it's trending above Wednesday's low of $28.75 or above more support at $28.11 and then once it sustains a move or close above $30.67 with volume that's near or above 5.27 million shares. If we get that move soon, then BBY will set up to re-fill some more of its previous gap-down-day zone from January that started just above $36.
IXYS
IXYS (IXYS), an integrated semiconductor company, designs, develops, manufactures and markets power semiconductors, digital and analog integrated circuits (ICs), and systems and radio frequency power semiconductors worldwide. This stock closed up 7.9% at $12.32 in Wednesday's trading session.
Wednesday's Volume: 952,000
Three-Month Average Volume: 113,942
Volume % Change: 726%
From a technical perspective, IXYS gapped up sharply higher here with monster upside volume. This big gap higher on Wednesday pushed shares of IXYS into breakout territory, since the stock cleared some key near-term overhead resistance levels at $11.47 to $12. Market players should now look for a continuation move to the upside in the short-term if IXYS can manage to take out Wednesday's intraday high of $12.40 with high volume.
Traders should now look for long-biased trades in IXYS as long as it's trending above Wednesday's low of $11.78 or above its 200-day at $11.47 and then once it sustains a move or close above $12.40 with volume that's near or above 113,942 shares. If that move starts soon, then IXYS will set up to re-test or possibly take out its next major overhead resistance levels at $13 to $14, or even its 52-week high of $14.95.
Diamondback Energy
Diamondback Energy (FANG), an independent oil and natural gas company, focuses on the acquisition, development, exploration and exploitation of onshore oil and natural gas reserves in the Permian Basin in West Texas. This stock closed up 3.2% at $90.56 in Wednesday's trading session.
Wednesday's Volume: 1.90 million
Three-Month Average Volume: 1.06 million
Volume % Change: 76%
From a technical perspective, FANG jumped notably higher here right above some near-term support at $87.15 with above-average volume. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $44.02 to its recent high of $93.33. During that uptrend, shares of FANG have been making mostly higher lows and higher highs, which is bullish technical price action. This spike higher on Wednesday is starting to push shares of FANG within range of triggering a near-term breakout trade. That trade will hit if FANG manages to take out Wednesday's intraday high of $91.36 to its all-time high of $93.33 with high volume.
Traders should now look for long-biased trades in FANG as long as it's trending above some key near-term support at $87.15 or at more support at $85 and then once it sustains a move or close above those breakout levels with volume that's near or above 1.06 million shares. If that breakout kicks off soon, then FANG will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $100 to $105, or even $110.
To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
RELATED LINKS:
>>5 Stocks Under $10 Poised to Pop
>>4 Big Stocks on Traders' Radars
>>5 Stocks Set to Soar on Bullish Earnings
Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including
CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.
Swiss bank UBS blames a rogue trader at its London office for a $2.3 billion loss that is Britain's biggest-ever fraud at a bank. Kweku Adoboli, the 32 year old trader, is sentenced to seven years in prison. Britain's financial regulator fines UBS after finding its internal controls were inadequate and allowed Adoboli, a relatively inexperienced trader, to make vast and risky bets.
DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.
>>5 Rocket Stocks Worth Buying Now
Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."
Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.
>>5 Stocks Set to Soar on Bullish Earnings
With that in mind, let's take a look at several stocks rising on unusual volume recently.
HollySys Automation Technologies
HollySys Automation Technologies (HOLI) provides automation and control technologies and products to customers in industrial, railway, subway, nuclear power, building retrofit and mechanical and electronic industries primarily in the People's Republic China, Hong Kong, Southeast Asia and the Middle East. This stock closed up 5.4% at $21.54 in Monday's trading session.
Monday's Volume: 742,000
Three-Month Average Volume: 404,003
Volume % Change: 81%
From a technical perspective, HOLI ripped sharply higher here and broke out above some key near-term overhead resistance levels at $20.50 to its 52-week high at $21.34 with strong upside volume. This breakout pushed shares of HOLI above the upper-end of its recent sideways trading chart pattern, which is bullish price action. Market players should now look for a continuation move higher in the short-term if HOLI manages to take out Monday's high and its new 52-week high of $21.66 with high volume.
Traders should now look for long-biased trades in HOLI as long as it's trending above Monday's low of $20.60 or above $19.50 and then once it sustains a move or close above $21.66 with volume that this near or above 404,003 shares. If that move materializes soon, then HOLI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $25 to $30.
Cigna
Cigna (CI), a health services organization, provides insurance and related products and services in the U.S. and internationally. This stock closed up 5.4% at $83.73 in Monday's trading session.
Monday's Volume: 5.91 million
Three-Month Average Volume: 2.11 million
Volume % Change: 223%
From a technical perspective, CI spiked sharply higher here right off its 200-day moving average of $80.11 and back above its 50-day moving average of $81.02 with strong upside volume. This stock recently formed a double bottom chart pattern at $76.41 to $76.79. Since forming that bottom, shares of CI have ripped sharply higher and it's now quickly moving within range of triggering a near-term breakout trade. That trade will hit if CI manages to take out Monday's high of $84.28 to some more near-term overhead resistance at $84.37 with high volume.
Traders should now look for long-biased trades in CI as long as it's trending above its 50-day at $81.02 and then once it sustains a move or close above those breakout levels with volume that's near or above 2.11 million shares. If that breakout triggers soon, then CI will set up to re-test or possibly take out its next major overhead resistance levels at $88 to its 52-week high at $90.63.
To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
RELATED LINKS:
>>3 Big Stocks Getting Big Attention
>>5 Toxic Stocks That Could Sink Your Portfolio
>>5 Big Trades to Brace for a Correction
Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including
CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.
Popular Posts: Should I Buy SIRI Stock? 3 Pros, 3 ConsPandora Stock Goes Quiet in the Face of iTunes Radio SuccessWhy Is FSLR Stock Going Bananas? Recent Posts: Facebook Sticking It to Brands – Great News for FB Stock SYMC Stock: Symantec Doesn’t Look Secure Why Is FSLR Stock Going Bananas? View All Posts During the past year, Facebook's (FB) Mark Zuckerberg has gone to zombie-esque language. But rather than moaning “Brainsssss,” the Facebook CEO can only be heard repeating “monetizaaaaaaation, mooooooobile.”
When FB stock hit the markets in 2012, Mark Zuckerberg had a pretty lackadaisical view of monetization, and even mobile to a lesser extent. He truly seemed to care about the product and nothing else, to the detriment of his newly public status.
However, a plunge in FB stock was followed by a change in attitude, and like all things, Mark Zuckerberg met with success. Facebook stock is up a sizzling 160% in the past year, growing the company to more than $170 billion.
There’s been plenty of speculation about where Zuckerberg’s monetization focus will hit next, with many laying odds on Instagram. But according to sources familiar with the company, it looks like Facebook is putting its crosshairs on once-free services, according to Valleywag:
“A source professionally familiar with Facebook’s marketing strategy, who requested to remain anonymous, tells Valleywag that the social network is ‘in the process of’ slashing ‘organic page reach’ down to 1 or 2 percent. This would affect ‘all brands’—meaning an advertising giant like Nike, which has spent a great deal of internet effort collecting over 16 million Facebook likes, would only be able to affect of around a 160,000 of them when it pushes out a post.”
The potential boost this could give FB stock is considerable. In theory, brands will have their prospective audience slashed into mere slivers — and the only way to really recoup that is by paying up.
And it’s a little salt in the wound of businesses that have spent years building a Facebook presence, as those efforts now could amount to very little. (But, this is always a risk when working with an online platform.)
The upside for consumers is that it shouldn’t harm the user experience. In fact, the fee could actually reduce the number of commercial posts you see — at least if you follow a lot of brands.
For the companies with money to spend, their agencies and experts will develop ads that can get results — not just spam. And yes, plenty of companies will stick around. You don’t just walk away from the ability to leverage a database of 1.2 billion users with relevant ads.
But FB stock holders really walk away winners in all this. According to eMarketer, the mobile ad market is expected to soar 75% in 2014 to $31.5 billion, and Facebook was already lined up to get a sizable chunk of that.
Now, they’ve likely punched that number up quite a bit more.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.
On December 18, the Federal Reserve announced that it was slowing down quantitative easing and would buy less Treasury and agency securities. This was the start of the much awaited "taper" that the markets had been expecting for a good portion of last year. Since that time, gold has significantly outperformed the S&P 500 index, a reversal from previous months in which the index outperformed gold.
GLD data by YCharts
Why gold?
Gold's outperformance almost seems counter-intuitive. After all, one of the biggest arguments that gold bugs have presented is that the Fed's quantitative easing program is resulting in more fiat money circulating throughout the economy, leading to inflation. Gold is often used as a hedge against inflation.
Therefore, we would expect the price of gold to fall as quantitative easing comes to a close. But, that hasn't happened. Instead, the fundamentals for the yellow metal have taken over as demand for it has surged.
Gold trusts and ETFs
One of the easiest ways to profit off of a rising gold price is to buy shares in one of the various exchange-traded gold trusts. These are essentially closed-end funds that own physical gold bullion located in a vault. Each share of the trust represents a fractional ownership share of the physical bullion in the vault. Thus, these trusts could be an easy way to purchase gold exposure directly on an exchange. One example of a trust like this is the Sprott Physical Gold Trust (NYSEMKT: PHYS ) .
There are also ETFs available that track the price of gold. These differ from the pure gold trusts because they are open-ended. What this means is that the custodian stands ready to both issue and redeem new shares as market demand dictates. ETFs such as SPDR Gold Shares (NYSEMKT: GLD ) also consist of physical gold bullion stored in a vault. However, it is not a fixed quantity. Instead, the fund buys more physical gold whenever the demand for its shares increases and it sells off some of this physical gold whenever demand for its shares decreases.
Senior gold miners
Another way to profit from rising gold prices is to invest in the producers. One advantage that investing in mining companies can have over the purchase of physical gold is the ability to derive cash flow from your investment. The only way to profit off of an investment in physical gold is to sell it for a higher price than what you bought it for. Mining companies, however, do generate cash, and in many cases the mining company returns some of this cash to investors in the form of a dividend. For example, Goldcorp (NYSE: GG ) , one of the largest gold miners in the world, pays a trailing dividend of $0.60 per share. This is a 2.10% yield at the current stock price.
For an investor looking to primarily bet on gold prices, it may make more sense to make a broader bet and invest in an ETF that owns shares in all the gold mining companies rather than trying to pick and choose between them. One ETF that does this is the Market Vectors Gold Miners ETF (NYSEMKT: GDX ) . This ETF owns shares in the largest gold mining companies in the world, weighted by market cap.
Source: Yahoo Finance
The price of GDX tends to move with the price of gold. However, the ETF tends to make moves of a much greater magnitude, allowing the equivalent of leveraged exposure to gold prices without actually using leverage.
GLD data by YCharts
Junior gold miners
It may be possible to profit further from a rising gold price by purchasing shares in smaller gold mining companies, termed junior gold miners. These mining companies are much smaller than the majors and many are much weaker financially. Therefore, junior gold miners are much riskier than the larger companies that make up GDX, so when gold prices fall, these companies tend to make a much larger downward move than in their larger peers.
GLD data by YCharts
However, should gold continue to move upward then junior gold miners should deliver much greater returns than either physical gold or senior gold miners. This can be seen in the above price chart of the Market Vectors Junior Gold Miners ETF (NYSEMKT: GDXJ ) , which has outperformed any of the other gold investments discussed in this article.
A good investment vs. a game-changing investment
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.
Only 18 days remain before the March 31 enrollment deadline, and the government is about 1.8 million behind its goal of 6 million new health insurance customers.
That's because states such as Hawaii, Maryland and Oregon, all run by Democratic governors and legislatures supportive of the law, have had their exchanges falter and at times collapse.
Hawaii launched with a lot of fanfare, as well as a lot of technical issues, and sits at 30% of its projected enrollment with 4,661 people. The District of Columbia faced similar issues and is at 28% of its projected enrollment.
Last month, Maryland fired its exchange provider after the website froze on its first day and has had problems ever since. Oregon and Hawaii both began processing enrollment applications by hand because their websites were so problematic. Both states' exchange directors resigned in December.
"Maryland, Nevada, Oregon — I would put them in the disappointments category for state-run exchanges," said Bill Melville, a market analyst at Decision Resources Group, a health care research and consulting group. "They ended up struggling in all three cases."
Other states trailing their original projections say they aren't giving up.
"We've seen a massive uptick just since Monday at our call center," said Debra Hammer, chief communications officer for the New Mexico health insurance exchange, which had 15,012 enrolled in private plans as of Feb. 28. That's far short of initial projections of 40,000 by the end of March. "It had been 200 a day, but now we're up past 600. I think people are starting to feel that urgency."
She expects that to continue as New Mexico — as well as organizations and states throughout the nation — bombard soc! ial networks, television and radio stations, online networks such as YouTube and Pandora, and even bars and restaurants with ads, pamphlets, doorknob hangers and one-on-one coffee sessions. New Mexico has 150 events planned in the next 18 days.
"We definitely want our numbers higher by the end of open enrollment," she said. "That is why we're doing a last-minute push to get the word out."
Some states — including largely Republican states where the government has not promoted the exchanges — have surpassed their initial projections, with California at 135% of projections, Florida at 105%, Idaho at 125%, North Carolina at 101% and Washington at 109% by the end of February, according to an analysis by Avalere Health.
But others, again, unexpectedly, have fallen far short of their goals. New Mexico will eventually run its own exchange, but the federal government runs the site now. Hammer said that may have caused some confusion and hurt initial enrollment.
The federal site, HealthCare.gov, has been running properly since at least Nov. 30, officials say.
Avalere projects the total enrollment will be 5.4 million by the end of March, based on the February numbers announced Tuesday, but Avalere Vice President Caroline Pearson said the government could still manage 6 million if there's a big rush at the end.
Melville agreed.
"I've seen a lot of talk about there being a miracle, but people sign up at the last minute for these things," he said. "I tend to believe there's going to be a big rush at the end."
Some states have had low enrollment rates in part because their governments have not promoted the law.
North Dakota's insurance commissioner focused on the opportunity for fraud and how many people's insurance had not been renewed, rather than promoting the new marketplaces. South Dakota's insurance commissioner page highlights that the state government opposed the law.
"We do not have any special efforts planned during the final three weeks," sai! d Dawn Do! vre, director of communications for the South Dakota Department of Labor and Regulation. The office does answer consumer questions as they come in, she said.
But there have also been surprises.
"Idaho's above where their goal was expected to be," Melville said. "But they started with a high number of uninsured."
Although dominated by Republican politicians opposed to the law, Idaho voted to run its own exchange starting in the fall. Private organizations there are promoting enrollment now.
In North Carolina, which has a Republican governor and legislature, "no one expected (the state) to have 200,000 plans at this point," Melville said.
In other states, such as Oklahoma, which is at 45% of enrollment projections, navigators and organizations that had hoped to promote the exchanges faced resistance from state lawmakers who limited their ability to give information to consumers, Melville said.
"I don't think you'll see any of that being lifted before the deadline," he said.
In Delaware, which has 53% of its projected enrollment with 6,500 people, Jim Grant, communications coordinator for the state's marketplace, said they've also ramped up for the last three weeks.
"We've been encouraged that our numbers have been going up," he said. "We're not where we want to be, but there's been steady improvement."
They're targeting 18- to 34-year-olds with Bruno Mars and Lady Antebellum concert ticket contests, emphasizing the penalty people will pay if they don't have insurance in 2014, partnering with African-American churches in Wilmington and Newcastle for enrollment events, and focusing on enrollment in Kent County, where the numbers haven't been as high as they would like.
"We are expecting, and hopeful, that there will be a surge, and we're preparing for that," he said. "We certainly have no reason not to expect it, given human nature and our stepped-up efforts."
Follow @KellySKennedy on Twitter.
Popular Posts: 9 Oil and Gas Stocks to Buy NowBiggest Movers in Energy Stocks Now – CHK KOG CLD PXDHottest Technology Stocks Now – GTAT N WDAY AMAT Recent Posts: Biggest Movers in Healthcare Stocks Now – LCI STJ CYH SIRO Biggest Movers in Financial Stocks Now – ENV KCG MFC CIM Biggest Movers in Technology Stocks Now – CGNX ADVS SYNA HIMX View All Posts 3 Machinery Stocks to Buy Now The grades of three machinery stocks are better this week, according to the Portfolio Grader database. Every one of these stocks has an “A” (“strong buy”) or “B” overall (“buy”) rating.
Luxfer Holdings PLC Sponsored ADR () is progressing from last week’s rating of B (“buy”) as the company improves to an A (“strong buy”) this week. Luxfer Holdings, a materials technology company, engages in the design, manufacture, and supply of materials, components, and gas cylinders. In Portfolio Grader’s specific subcategory of Equity, LXFR also gets an A. Shares of the stock have been changing hands at an unusually rapid pace, three times the rate of the week prior. .
American Railcar Industries, Inc. () is bettering its rating of C (“hold”) from last week to a B (“buy”) this week. American Railcar Industries designs, manufactures, and sells hopper and tank railcars in North America. .
This week, WABCO Holdings () pushes up from a C to a B rating. Wabco Holdings manufactures and sells control systems, including advanced braking, stability, suspension, transmission control and air compressing and processing systems, that improve vehicle performance and safety and reduce overall vehicle operating costs. .
Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.
DELAFIELD, Wis. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for $10 a share or less don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous coin on a regular basis.
>>5 Blue-Chip Stocks to Trade for Gains: Must-See Charts
Just take a look at some of the big movers in the under-$10 complex from Thursday, including New Concept Energy (GBR), which is exploding higher by 29%; Golden Minerals (AUMN), which is ripping to the upside by 27%; StemCells (STEM), which is soaring higher by 20%; and Swisher Hygiene (SWSH), which is moving up by 17%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.
One low-priced stock that's ripping to the upside today is American Apparel (APP), which I highlighted in May 30's "5 Stocks Ready to Break Out" at around 60 cents per share. I mentioned in that piece that shares of American Apparel were starting to bounce higher right off its 50-day moving average. That bounce was starting to push shares of APP within range of triggering a big breakout trade above a key downtrend line that was acting as resistance for over a month.
>>5 Stocks With Big Insider Buying
Guess what happened? Shares of American Apparel finally triggered that breakout today after the stock consolidated and hug its 50-day moving average for a few weeks. This stock spiked sharply higher at the open tagging an intraday high of 78 cents per share with massive upside volume. That represents a large gain of 30% for anyone who bought this stock at around 60 cents per share in anticipation of that breakout. As you can see, trading small-cap stocks can lead to massive profits in a very short timeframe.
Traders should continue to watch shares of APP here, since this stock could still be in the early stages of making a much larger move to the upside. The next key resistance levels to watch for a potential breakout trade are at today's intraday high of 81 cents to more resistance at 82 cents per share.
Low-priced stocks are something that I tweet about on a regular basis. I frequently flag high-probability setups, breakout candidates and low-priced stocks that are acting technically bullish. I like to hunt for low-priced stocks that are showing bullish price and volume trends, since that increases the probability of those stocks heading higher. These setups often produce monster moves higher in very short time frames.
>>5 Stocks Set to Soar on Bullish Earnings
When I trade under-$10 names, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 names with a catalyst, but that's secondary to the chart and volume patterns.
With that in mind, here's a look at several under-$10 stocks that look poised to potentially trade higher from current levels.
Himax Technologies
One under-$10 semiconductor player that's starting to move within range of triggering a near-term breakout trade is Himax Technologies (HIMX), which provides display imaging processing technologies to consumer electronics worldwide. This stock has been destroyed by the sellers so far in 2014, with shares off sharply by 54%.
>>4 Big Stocks to Trade (or Not)
If you glance at the chart for Himax Technologies, you'll notice that this stock has been downtrending badly for the last three months and change, with shares falling from its high of $16.08 to its recent low of $5.89 a share. During that downtrend, shares of HIMX have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of HIMX have now started to rebound a bit off that $5.89 low and it's starting to push within range of triggering a near-term breakout trade.
Traders should now look for long-biased trades in HIMX if it manages to break out above some near-term overhead resistance levels at $6.80 to $7.05 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 6.86 million shares. If that breakout gets underway soon, then HIMX will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $7.74 a share to $8.04 a share. Any high-volume move above those levels will then give HIMX a chance to tag $9 to $9.50 a share.
Traders can look to buy HIMX off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $6.12 to $5.89 a share. One can also buy HIMX off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Imris
Another under-$10 health care player that's starting to move within range of triggering a near-term breakout trade is Imris (IMRS), which designs, manufactures and sells image-guided therapy solutions that enable surgeons to obtain information and make decisions during the course of procedures. This stock has been slammed hard by the bears so far in 2014, with shares off sharply by 31%.
>>3 Big-Volume Stocks to Trade for Breakouts
If you take a look at the chart for Imris, you'll see that this stock has been downtrending badly for the last three months and change, with shares moving lower from its high of $2.90 to its recent low of 79 cents per share. During that downtrend, shares of IMRS have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of IMRS have now started to rebound sharply higher off that 79 cents per share low and it's now starting to move within range of triggering a near-term breakout trade.
Market players should now look for long-biased trades in IMRS if it manages to break out above its 50-day moving average of $1.16 a share and then once it takes out some more key overhead resistance at $1.20 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 271,398 shares. If that breakout materializes soon, then IMRS will set up to re-test or possibly take out its next major overhead resistance levels at $1.33 to $1.52 a share, or even its 200-day moving average of $1.59 a share.
Traders can look to buy IMRS off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $1 a share. One can also buy IMRS off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Bebe Stores
One under-$10 apparel stores player that's starting to move within range of triggering a major breakout trade is Bebe Stores (BEBE), which designs, develops and produces a line of women's apparel and accessories. This stock has been destroyed by the sellers over the last three months, with shares down huge by 47%.
>>4 Stocks Under $10 to Trade for Breakouts
If you take a glance at the chart for Bebe Stores, you'll see that this stock has been downtrending badly for the last two months and change, with shares moving lower from its high of $6.84 to its recent low of $3.22 a share. During that downtrend, shares of BEBE have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of BEBE have started to consolidate and trend sideways over the last few weeks and this stock is now starting to push within range of triggering a major breakout trade.
Traders should now look for long-biased trades in BEBE if it manages to break out above some key near-term overhead resistance at $3.50 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 456,428 shares. If that breakout hits soon, then BEBE will set up to re-test or possibly take out its next major overhead resistance levels at $4 to $4.25, or even its 50-day moving average of $4.64 a share. A move to $5 or $5.50 is even possible if BEBE gets some high-volume momentum.
Traders can look to buy BEBE off weakness to anticipate that breakout and simply use a stop that sits right below its 52-week low of $3.22 a share. One can also buy BEBE off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Orbcomm
Another under-$10 data communications player that's starting to trend higher and move within range of triggering a big breakout trade is Orbcomm (ORBC), which provides machine-to-machine communication solutions primarily in the U.S., Japan and the Middle East. This stock has is down notably over the last three months, with shares off by 12%.
>>5 Toxic Stocks You Should Sell This Summer
If you look at the chart for Orbcomm, you'll see that this stock has been uptrending a bit over the last two months, with shares moving higher from its low of $5.68 to its recent high of $6.77 a share. During that uptrend, shares of ORBC have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of ORBC are now starting to spike higher today right off both its 50-day and 200-day moving averages. That spike is starting to push shares of ORBC within range of triggering a big breakout trade above some key near-term overhead resistance levels.
Market players should now look for long-biased trades in ORBC if it manages to break out above some near-term overhead resistance levels at $6.57 to $6.77 a share and then once it takes out more resistance levels at $6.80 to $7.01 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 185,998 shares. If that breakout begins soon, then ORBC will set up to re-test or possibly take out its next major overhead resistance levels at $8 to its 52-week high at $8.21 a share.
Traders can look to buy ORBC off weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $6.16 or at $6 a share. One can also buy ORBC off strength once it starts to move above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Unwired Planet
One final under-$10 application software player that looks ready to trigger a major breakout trade is Unwired Planet (UPIP), which develops patents that allow mobile devices to connect to the Internet. This stock has been red hot so far in 2014, with shares up a whopping 65%.
If you take a glance at the chart for Unwired Planet, you'll notice that this stock has been uptrending over the last month and change, with shares moving higher from its low of $1.95 to its recent high of $2.38 a share. During that uptrend, shares of UPIP have been consistently making higher lows and higher highs, which is bullish technical price action. Shares of UPIP are now starting to spike higher right above its 50-day moving average and it's quickly moving within range of triggering a major breakout trade above some key near-term overhead resistance levels.
Traders should now look for long-biased trades in UPIP if it manages to break out above some near-term overhead resistance levels at $2.38 to its 52-week high of $2.44 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 1.10 million shares. If that breakout kicks off soon, then UPIP will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $3 to $3.50 a share, or even $4 a share.
Traders can look to buy UPIP off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $2.12 to $2.05 a share, or even $2 a share. One can also buy UPIP off strength once it starts to bust above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
To see more hot under-$10 equities, check out the Stocks Under $10 Setting Up to Explode portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
RELATED LINKS:
>>5 Retail Stocks to Trade for Gains in June
>>5 Stocks Poised for Breakouts
>>Move Into Hedge Funds' 5 Favorite REITs This Summer
Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including
CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.
The first of the new plants to come online is being built by Kinder Morgan Energy Partners LP (NYSE: KMP) and is scheduled to begin processing crude for BP plc (NYSE: BP) in July. The initial processing capacity of the so-called "splitter" plant is 100,000 barrels a day, but it could be expanded relatively easily and cheaply if demand grows.
Kinder Morgan says the plant will cost $370 million, about 80% to 90% less than a full-blown refinery. Valero Energy Corp. (NYSE: VLO) and Phillips 66 (NYSE: PSX) have both indicated they may follow Kinder Morgan's lead and build splitter plants of their own.
The Kinder Morgan plant will split the condensates that are produced along with crude oil into components such as naphtha, kerosene, and gasoil. The components can then be exported and fully-refined into usable fuels at the destination.
The splitters will help producers like BP recover some of the profit from the massive increase in U.S. crude production. Refiners have received most of the benefit until now, and the irony of high crude prices and low profits for oil producers has not been lost on the producers. Recapturing some of those profits by exporting barely-refined products will tilt the field a bit more in producers’ favor.
What impact will this have on the price U.S. drivers pay for gasoline at the pump? At first glance, it appears that it could raise prices, and that is likely to be the case for a while. The national average retail price of regular unleaded gasoline was $3.488 a gallon on Sunday, according to AAA’s Daily Fuel Gauge Report.
Ultimately, though, prices would stabilize as producers turn enough of a profit to support more drilling. Another of the ironies of the U.S. crude market today is that the high prices are not high enough to encourage capital spending. Witness the cuts that all major oil companies have made to their 2014 capex budgets, especially in North America.
The current oil "glut" in the U.S. could end as quickly as it started if producers don't make enough money to continue exploration. The splitters are one way to boost revenues and look for more of them over the next year or so. But to think this will lead to pump prices below $3 a gallon is fantasy.
Commodities in general have been under pressure for the last couple years. This can be seen by looking at the GCC Greenhaven Continuous Commodity ETF which holds a basket of resources.
The weekly chart has formed a bullish bottom pattern, and as of last January it looks as though it's now building a basing pattern. Overall commodities are in the very early stages of a stage 1 basing pattern and it looks as though it will be a few more months before any significant breakout will occur. But there could be some early entry points if you know what to look for…
A few days ago I talked about how commodities tend to perform well near the end of a bull market in the United States stock market. I also pointed out which hot index was going to benefit from this.
Read Commodity Index Report: http://www.gold-eagle.com/article/gold-and-oil-fuel-canadian-stock-market-rally
In this article I want to bring your attention to the steel market. Using the SLX Steel ETF you can clearly see the bottoming pattern and basing pattern for this commodity.
Currently steel is underperforming the stock market and is vulnerable to lower prices. But if we see a few things come together in the coming days or weeks, this could be a screaming buy.
My technical take on steel is this:SLX has formed a bottoming pattern from January – mid March. It has since put in a strong impulse rally to make a higher high, and is now consolidating above key support. The RSI (Relative Strength) remains in a down trend, but if this starts to rise and SLX breaks above its recent highs around the $47.75 level I feel steel will start to rally with $50 being the next major whole number and previous high for steel to find some resistance.
Also price has been riding along the 200 day moving average which is acting as support. If price closes a couple of days below the 200 moving average I would consider this to be a bearish sign.
In short, we are looking for the relative strength to start making new highs. Also we want to see a reversal bar on the SLX chart to the upside which we got on Tuesday. Or you can wait for a breakout and close above $47-48 area. Stop would be somewhere around the $45.75 area to start, then raise it as price rallies using intraday pivot lows on the 30 minute chart.
GET THESE REPORTS DELIVERED TO YOUR INBOX FREE: www.GoldAndOilGuy.com
Chris Vermeulen
Disclaimer: I do not own shares of TAN as this point, but may buy some in the near future.
DELAFIELD, Wis. (Stockpickr) -- Corporate insiders sell their own companies' stock for a number of reasons.
>>5 Stocks Set to Soar on Bullish Earnings
They might need the cash for a big personal purchase such as a new house or yacht, or they might need the cash to fund a charity. Sometimes they sell as part of a planned selling program that they have put in place for diversification purposes, which allows them to sell stock in stages instead of selling all at one price.
Other times they sell because they think their stock is overvalued and the risk/reward is no longer attractive. Some even dump their own stock because they have inside knowledge that a competitor is eating their lunch and stealing market share.
But insiders usually buy their own shares for one reason: They think the stock is a bargain and has tremendous upside.
>>5 Rocket Stocks to Buy for a Correction Week
The key word in that last statement is "think." Just because a corporate insider thinks his or her stock is going to trade higher, that doesn't mean it will play out that way. Insiders can have all the conviction in the world that their stock is a buy, but if the market doesn't agree with them, the stock could end up going nowhere. Also, I say "usually" because sometimes insiders are loaned money by the company to buy their own stock. Those loans are often sweetheart deals and shouldn't be viewed as organic insider buying.
At the end of the day, it's large institutional money managers running big mutual funds and hedge funds that drive stock prices, not insiders. That said, many of these savvy stock operators will follow insider buying activity when they agree with the insider that the stock is undervalued and has upside potential. This is why it's so important to always be monitoring insider activity, but it's twice as important to make sure the trend of the stock coincides with the insider buying.
>>5 Toxic Stocks You Should Sell This Summer
Recently, a number of companies' corporate insiders have bought large amounts of stock. These insiders are finding some value in the market, which warrants a closer look at these stocks. Here's a look five stocks whose insiders have been doing some big buying per SEC filings.
Prospect Capital
One financial services player that insiders are loading up on here is Prospect Capital (PSEC), which provides capital to middle-market companies and private equity financial sponsors for refinancing, leveraged buyouts, acquisitions, recapitalizations, later-stage growth investments and capital expenditures. Insiders are buying this stock into modest weakness, since shares are off by 8% so far in 2014.
Prospect Capital has a market cap of $3.5 billion and an enterprise value of $5.9 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 8.6 and a forward price-to-earnings of 8. Its estimated growth rate for this year is -19.1%, and for next year it's pegged at 1.6%. This is not a cash-rich company, since the total cash position on its balance sheet is $274.97 million and its total debt is $2.69 billion. This stock currently sports a dividend yield of 13%.
>>3 Big-Volume Stocks to Trade for Breakouts
The CEO just bought 100,000 shares, or about $1.03 million worth of stock, at $10.33 per share. That same CEO also just bought 100,000 shares, or about $1.03 million worth of stock, at $10.37 per share.
From a technical perspective, PSEC is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock has been uptrending for the last month, with shares moving higher from its low of $9.55 to its recent high of $10.48 a share. During that move, shares of PSEC have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of PSEC within range of triggering a major breakout trade.
If you're bullish on PSEC, then I would look for long-biased trades as long as this stock is trending above some near-term support at $10.01 and then once breaks out above some near-term overhead resistance levels at $10.48 to $10.82 and then once it clears more resistance at $10.94 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 5.44 million shares. If that breakout materializes soon, then PSEC will set up to trend well north of $11 a share.
Jive Software
Another application software player that insiders are active in here is Jive Software (JIVE), which provides a social business software platform to businesses, government agencies, and other enterprises. Insiders are buying this stock into notable weakness, since shares have dropped 25% so far in 2014.
>>5 Stocks Under $10 Set to Soar
Jive Software has a market cap of $591 million and an enterprise value of $475 million. This stock trades at a reasonable valuation, with a price-to-sales of 3.95 and a price-to-book of 6.71. Its estimated growth rate for this year is 25.5%, and for next year it's pegged at 24.4%. This is a cash-rich company, since the total cash position on its balance sheet is $113.64 million and its total debt is just $7.8 million.
The CEO just bought 100,000 shares, or about $755,000 worth of stock, at $7.55 per share.
From a technical perspective, JIVE is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been uptrending a bit for the last few weeks, with shares moving higher from its low of $6.75 to its recent high of $8.74 a share. During that move, shares of JIVE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of JIVE within range of triggering a near-term breakout trade post-earnings.
If you're in the bull camp on JIVE, then I would look for long-biased trades as long as this stock is trending above its 50-day at $7.84 or above $7.50 and then once it breaks out above some near-term overhead resistance levels at $8.74 to $8.98 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 726,636 shares. If that breakout triggers soon, then JIVE will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $9.78 to $11 to a share.
Insys Therapeutics
One specialty pharmaceutical player that insiders are in love with here is Insys Therapeutics (INSY), which develops and commercializes supportive care products. Insiders are buying this stock into major weakness, since shares have dropped sharply over the last three months by 38%.
>>5 Stocks Poised for Breakouts
Insys Therapeutics has a market cap of $1 billion and an enterprise value of $837 million. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 20 and a forward price-to-earnings of 16. Its estimated growth rate for this year is 7.5%, and for next year it's pegged at 54.8%. This is a cash-rich company, since the total cash position on its balance sheet is $46.92 million and its total debt is zero.
A director just bought 20,000 shares, or about $490,000 worth of stock, at $24.54 per share.
From a technical perspective, INSY is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently broke out above some key near-term overhead resistance levels at $27.79 to $27.86 a share. That breakout is now starting to push shares of INSY within range of triggering a much bigger breakout trade above some key near-term overhead resistance levels.
If you're bullish on INSY, then I would look for long-biased trades as long as this stock is trending above $27.50 or above $25 and then once it breaks out above some near-term overhead resistance levels $30.81 to its 200-day moving average of $32.24 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 621,614 shares. If that breakout gets underway soon, then INSY will set up to re-test or possibly take out its next major overhead resistance levels at $40 to $43 a share.
Comverse
One technology player that insiders are jumping into here is Comverse (CNSI), which is a provider of software and systems enabling services for converged billing and active customer management, mobile Internet and value-added services. Insiders are buying this stock into major weakness, since shares have plunged by 31% so far in 2014.
Comverse has a market cap of $593 million and an enterprise value of $359 million. This stock trades at fair valuation, with a trailing price-to-earnings of 31 and a forward price-to-earnings of 23. Its estimated growth rate for this year is 8.7%, and for next year it's pegged at 15.3%. This is a cash-rich company, since the total cash position on its balance sheet is $210.10 million and its total debt is zero.
A director just bought 97,945 shares, or about $2.31 million worth of stock, at $23.40 per share. Another director also just bought 25,000 shares, or about $587,000 worth of stock, at $23.50 per share.
From a technical perspective, CNSI is currently trending above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $22 to its intraday high of $26.50 a share. That uptrend has pushed shares of CNSI into breakout territory, since the stock has taken out some near-term overhead resistance levels at $25.31 to $25.74 and its 50-day moving average of $25.71 a share. That move is now starting to push shares of CNSI within range of triggering another big breakout trade.
If you're bullish on CNSI, then I would look for long-biased trades as long as this stock is trending above some near-term support at $24 and then once it breaks out above some near-term overhead resistance around $27 to $28 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 229,895 shares. If that breakout hits soon, then CNSI will set up to re-test or possibly take out its next major overhead resistance levels at $32 to $34 a share.
Martin Marietta Materials
One final stock with some decent insider buying is Martin Marietta Materials (MLM), which produces and sells aggregates for the construction industry. Insiders are buying this stock into major strength, since shares have traded higher by 32% so far in 2014.
Martin Marietta Materials has a market cap of $6 billion and an enterprise value of $7 billion. This stock trades at reasonable valuation, with a trailing price-to-earnings of 48 and a forward price-to-earnings of 24. Its estimated growth rate for this year is 44.5%, and for next year it's pegged at 43.7%. This is not a cash-rich company, since the total cash position on its balance sheet is $35.80 million and its total debt is $1.07 billion. This stock currently sports a dividend yield of 1.2%.
A director just bought 4,000 shares, or about $517,000 worth of stock, at $129.18 to $129.51 per share.
From a technical perspective, MLM is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $115.19 to its recent high of $133.44 a share. During that uptrend, shares of MLM have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MLM within range of triggering a near-term breakout trade.
If you're bullish on MLM, then look for long-biased trades as long as this stock is trending above some near-term support levels at $127.50 or above its 50-day moving average of $124.15 and then once it breaks out above its 52-week high of $133.44 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 662,588 shares. If that breakout begins soon, then MLM will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout $145 to $150 a share.
To see more stocks with notable insider buying, check out the Stocks With Big Insider Buying portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
RELATED LINKS:
>>Why Apple's Lower Price Tag Spells Bigger Gains in 2014
>>3 Big Stocks on Traders' Radars
>>5 Retail Stocks to Trade for Gains in June
Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including
CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.Adding another big name to its already-impressive lineup, Green Mountain Coffee Roasters (NASDAQ: GMCR ) just announced a multiyear agreement with Italy's Lavazza brand. While the name brand is a nice addition to the family, the fact that Lavazza focuses on espresso is an even bigger win. Green Mountain's Keurig machines have become the de facto brand for single-serve brewed coffee, but the company has had less luck making inroads to the land of pressure-brewed espresso. Lavazza offers Green Mountain a new avenue to success.
Lavazza brings a roaster's background to the partnership, and it doesn't operate retail locations. While the initial product development will focus on brewed coffee for the Keurig line, there's no doubt that espresso is the long-term play for Green Mountain. Lavazza and Green Mountain have so far announced four lines available starting in the fall of this year, all focused on brewed coffee. That, though, is a market that Green Mountain is already dominating. A much more important market is the world of single-serve espresso -- a world that's, so far, largely unexplored.
The expansion of espresso
This isn't the first time that Lavazza and Green Mountain have joined forces. In 2012, the companies co-branded a brewer called the Keurig Rivo. That system has a stronger pump, which allows it to brew espresso and steam milk. The Rivo doesn't get much coverage from Green Mountain in its investor materials, in all likelihood because it's not growing at anything like an impressive rate.
A new range of Lavazza pods could help boost sales of that machine and reach into new homes and offices, or help the company double down on existing Keurig owners who also want to brew espresso. Right now, the biggest competition for the market isn't very big.
Although Starbucks (NASDAQ: SBUX ) produces a Verismo brewer, which brews coffee and espresso, the machine has failed to take off, although it did well this holiday season. The relatively open competitive space means that any big move -- like this Lavazza agreement -- could swing large portions of the potential customer base.
Doubling down on Lavazza
Instead of tying in with a new company, Green Mountain decided to go after the espresso market with Lavazza. It's the right call, as Lavazza already has a 5% stake in Green Mountain -- taken back in 2010 when the companies first discussed a jointly designed machine -- and Lavazza is a major worldwide brand. In 2011, the business generated $1.7 billion in worldwide sales.
Even in the U.S., the company has a wide distribution, appearing in grocery stores, department stores, and specialty shops. Globally, Lavazza operates in 90 countries and sells billions of cups of coffee annually. Due to its different focus, the company is nowhere near the scale of Starbucks, which generated $14.9 billion in sales last year, but it has the chance to help Green Mountain round out its offerings without building even stronger ties with Howard Schultz & Co.
As Green Mountain has grown, it's built up a tentative truce with Starbucks, which sees the value in having its product more widely distributed. Since that agreement still has more than four years left on it, there's no telling what Starbucks' brewer offering will look like by the end. Better for Green Mountain to tie up with Lavazza, which will definitely not be offering a competing brewer, than to get even further in with Starbucks. This deal looks like an excellent move for Green Mountain.
Add some caffeine to your portfolio's morning
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.
Elon Musk followed his own advice today (Thursday) in a way that will pay off huge for Tesla Motors Inc. (Nasdaq: TSLA) stock investors...
You see, Musk is viewed as one of the boldest and most innovative chief executive officers in the world. That's part of the reason why Tesla stock has seen a meteoric rise of 515% since the start of 2013. He's also the co-founder of PayPal, Tesla, SpaceX, and SolarCity Corp. (Nasdaq: SCTY).
And in his commencement address last month to the graduating class of the University of Southern California's business school, he said to "Do something bold."
In a blog post on Tesla's website, Musk wrote today that the company "will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology."
The decision was made to help energize the electric vehicle market, which Musk says still lags too far behind the traditional auto market.
According to the blog post, new vehicle production is nearing 100 million vehicles annually, and there are nearly 2 billion operational vehicles worldwide. However, automakers attribute less than 1% of their total vehicle sales to electric vehicles on average.
By opening up all of its patents, Tesla and Musk hope that other automakers will be more inclined to produce electronic cars.
"We believe that Tesla, other companies making electric cars, and the world would all benefit from a common, rapidly evolving technology platform," Musk said.
"Tesla Motors was created to accelerate the advent of sustainable transport," he continued. "If we clear a path to the creation of compelling electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are acting in a manner contrary to that goal."
Some have viewed the move as risky, as competitors will now be able to employ the same exact technology as Tesla. But that's all part of Musk's strategy - a strategy that's going to pay off huge for TSLA stock investors...
What an Expanded Market Means for Tesla (Nasdaq: TSLA) StockMusk knows that in order for Tesla Motors and TSLA stock to thrive, the electric vehicle industry must thrive as well. That's why he's giving his competition a leg up. As the quality of electric vehicles - across the market - improves, demand will increase worldwide.
"Our true competition is not the small trickle of non-Tesla electric cars being produced, but rather the enormous flood of gasoline cars pouring out of the world's factories every day," Musk said. "We believe that applying the open source philosophy to our patents will strengthen rather than diminish Tesla's position in this regard."
As an industry leader, Tesla Motors is perfectly positioned to ride any demand increases in electric vehicles. And that's good news for TSLA shareholders.
But unfortunately for investors right now, electric vehicle demand has not reached the point many analysts thought it might.
"Tesla aside, the auto industry's push into [electric vehicles] has fallen far short of expectations," Morgan Stanley (NYSE: MS) Analyst Adam Jonas said in a report this May. "Just a few years ago, forecasts for global [electric vehicle] penetration were as high as 5% or 10% by 2020. From today's perspective, we think penetration in the 1% range would be respectable."
Tesla stock has pulled back in the last few months following its meteoric rise of 2013, and in the past three months the stock is down nearly 16%.
Analysts expect that volatility to continue for the foreseeable future. According to a survey by Thomson/First Call, three analysts rate TSLA stock as a "Strong Buy," three as a "Buy," seven as a "Hold," and one as an "Underperform."
"It is a great company; innovative and the cars are beautiful," Chad Morganlander of Stifel Nicolaus' Washington Crossing Advisors told Yahoo! Finance. "The problem is that the valuation is way ahead of itself."
"For more aggressive traders, perhaps you want to play around with it," he said. "But, from a fundamental perspective and a valuation perspective, I would just be much more conservative with it."
TSLA stock will continue to pull back from record highs. Short-term investors looking for a quick pop should not buy in to TSLA. It also isn't the best stock for risk-averse investors looking for safe plays.
It's the definition of a momentum stock, and any investor that purchases TSLA should be thinking of the company's long-term potential.
If the electric vehicle market takes off like Elon Musk hopes, TSLA stock is a great long-term play for investors willing to take some risk. The company is an industry leader and is run by one of the world's most innovative CEOs. If the market expands, Musk will capitalize.
Money Morning's Chief Investment Strategist Keith Fitz-Gerald says the long-term potential for TSLA stock is undeniable.
"I think Elon Musk is one of the most dynamic CEOs on the planet, and I believe he has the potential to make Tesla a $1,000 stock within the decade," Fitz-Gerald said.
Editor's Note: Elon Musk has helped Tesla stock gain a whopping 112% in the past year as the company operates as a major tech game changer.
Now Tesla is engaged in a highly sensitive venture called BlueStar that could disrupt $737 billion of the U.S. economy and impact 98% of the population.
Few details concerning BlueStar have made their way into the press. However, a recent investigation uncovered some shocking revelations... take a look.
What impact do you think today's patent move will have on TSLA stock in the short term? Let us know on Twitter @moneymorning using #Tesla.
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Yahoo! Finance: Here's Why You Want to Avoid Tesla
The iShares MSCI Emerging Markets Index (NYSE: EEM) seems to have halted its slide. The index bottomed out year-to-date on February 3, when it was down 11.2 percent. Since then, it has gained 1.5 percent, but bargains in the emerging markets still abound.
As I discussed in "A Plan, Not a Panic" two weeks ago, emerging markets are in much better economic shape today than they were even just a few years ago, much less during the currency crisis that peaked in 1998. Foreign exchange reserves are generally much more robust, budget deficits are narrower if they exist at all and, so far at least, the full-blown currency war that many were predicting last year isn't likely to breakout.
With rationality finally setting in, this is a terrific time to do a little bargain hunting in the emerging markets.
The most obvious play here is the iShares MSCI Emerging Markets Index itself. Covering China (18.8 percent of assets), South Korea (16 percent), Taiwan (12 percent) and Brazil (10.2 percent) with smaller positions spanning Asia and Europe, the fund is most exposed to any shift in sentiment.
The fund is currently trading at just 10.2 times forward one-year earnings, well below its average of about 18 times over the past two decades. On a price-to-sales basis it is even more attractive valued at just 1.03 times; the last time the index was this cheap on a sales basis was early 2009.
So while there are always dangers in trying to call a bottom to any market move, valuations alone are attractive enough to start pulling bargain hunters back in.
A broadly diversified play on an emerging market turnaround, iShares MSCI Emerging Markets Index is a great buy up to 45, which leaves plenty of room to run back to the average.
For those who can tolerate a bit more risk, you can also drill down and make more country-specific bets.
At this point my favorite would be iShares MSCI Sout! h Korea Index Fund (NYSE: EWY).
South Korea is something of a special case; despite having a highly developed economy, it is still lumped in with emerging markets.
South Korea's per capital income last year totaled more than USD33,000, well ahead of Spain and Italy and closing the gap between France and Japan. The South Korean economy is also the 15th largest in the world, boasts low unemployment and almost nonexistent inflation and ranks 7th in the World Bank's Ease of Doing Business Index.
That said, South Korea still uses capital controls to help protect its won. There is limited currency convertibility outside the country, essentially forcing traders to use Korean institutions. There are also some limits on foreign access to Korean equity markets, essentially making it more difficult to move money out of the country.
Because of those restrictions, MSCI (NYSE: MSCI), the company which is the primary arbiter of what is and isn't an emerging market, still lumps South Korea in with the emerging markets. That creates an advantage for market watchers, though.
Since South Korea is included in almost every emerging market index, any time those countries take a hit South Korea falls with them. But given the fact that it has more developed market characteristics than not, it's also usually one of the first to turn.
So far in February, there are early signs of improvement as iShares MSCI South Korea Index Fund has crossed both its 10-day and 200-day moving averages. Its relative strength index reading has also closed in on its average reading, all of which point to the fund's turn gaining momentum.
IShares MSCI South Korea Index Fund is a riskier bet on a turn, but it should pay off up to 63.
Popular Posts: 8 Pharmaceutical Stocks to Buy Now4 Commercial Banking Stocks to Buy Now7 Biotechnology Stocks to Buy Now Recent Posts: 5 Stocks With Prime Earnings Momentum — KNSY REGI STV FTEK EVAC 5 Stocks With Awful Earnings Momentum — FNBN GYRO MTGE PNX SHLD 5 Insurance Stocks to Sell Now View All Posts The ratings of seven biotechnology stocks are down this week, according to the Portfolio Grader database. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).
SIGA Technologies, Inc.’s () rating falls to a D (“sell”) this week, down from C (“hold”) the week prior. SIGA Technologies is a bio-defense company engaged in the discovery, development and commercialization of products for use in defense against biological warfare agents such as smallpox and arenaviruses. In Portfolio Grader’s specific subcategories of Earnings Revisions, Equity and Cash Flow, SIGA also gets an F. The stock price has dropped 8.3% over the past month, worse than the 1.3% decrease the Nasdaq has seen over the same period of time. .
This week, Trius Therapeutics, Inc. () drops from a C to a D rating. Trius Therapeutics is a biopharmaceutical company. The stock gets F’s in Earnings Growth, Earnings Momentum and Equity. Cash Flow and Sales Growth also get F’s. .
Nanosphere, Inc. () experiences a ratings drop this week, going from last week’s C to a D. Nanosphere develops, manufactures and markets an advanced molecular diagnostics platform. The stock gets F’s in Equity and Cash Flow. .
Slipping from a C to a D rating, Sunesis Pharmaceuticals, Inc. () takes a hit this week. Sunesis Pharmaceuticals is a clinical-stage biopharmaceutical Company which focuses on the discovery, development and commercialization of novel small molecule therapeutics for oncology. The stock also gets an F in Cash Flow. The stock price has been on the rise for the past two days, reaching $4.71. As of Feb. 10, 2014, 10% of outstanding Sunesis Pharmaceuticals, Inc. shares were held short. Trade volume is up 521% from the previous week. .
Oncolytics Biotech’s () rating falls this week to an F (“strong sell”), down from last week’s D (“sell”). Oncolytics Biotech discovers and develops pharmaceutical products for the treatment of cancers that have not been successfully treated with conventional therapeutics. The stock gets F’s in Equity and Cash Flow. .
This is a rough week for Navidea Biopharmaceuticals, Inc. (). The company’s rating falls to F from the previous week’s D. Navidea Biopharmaceuticals is focused on the development and commercialization of precision radiopharmaceutical diagnostics for diseases such as cancer. The stock gets F’s in Equity and Cash Flow. As of Feb. 10, 2014, 13.4% of outstanding Navidea Biopharmaceuticals, Inc. shares were held short. .
Targacept, Inc. () earns a D this week, moving down from last week’s grade of C. Targacept is an a biopharmaceutical company engaged in the design, discovery and development of a new class of drugs to treat multiple diseases and disorders of the nervous system by selectively targeting neuronal nicotinic acetylcholine receptors. The stock gets F’s in Equity, Cash Flow and Sales Growth. Shares of the stock have been changing hands at an unusually rapid pace, three times the rate of the week prior. .
Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.
