Three stocks all but immune to market turmoil

Investing in the stock market is often compared to gambling. This analogy became particularly popular in the wake of the 1973 publication of Burton Malkiel's A Random Walk Down Wall Street, which argued that the movement of asset prices is just, well, too random to outperform on a consistent basis. Most of the time, an active investor employing the tools of technical or fundamental analysis, the hypothesis goes, will underperform a passive investment strategy.

And this is exactly what is observed in the real world: Most money managers underperform the market in the long run. According to an analysis by NerdWallet, actively managed funds underperformed the market by an average of 0.56% (median of 1.36%) in the 10-year period ended December 2012. Even more to the point, a December 2013 study released by the National Bureau of Economic Research found that the average Sharpe ratio for all mutual funds that have been in existence for 30 or more years is 0.37, which compares unfavorably to the S&P 500 at 0.39.

The Sharpe ratio measures the risk-adjusted performance of an investment and can be used as a way to gain insight into where the returns are coming from in a portfolio. Two portfolios with with the same returns could have very different Sharpe ratios if one made risky bets and got lucky, and the other made safe bets that produced superior returns. A high Sharpe ratio is arguably the Holy Grail of investing: low risk, high reward. Or, at least, high reward relative to risk.

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With the random walk theory in mind, it may seem like investments with high Sharpe ratios are rare. This is true to a degree, but these investments do exist, and a few enterprising money managers have developed strategies to capitalize on them. Take, for example, Warren Buffett. According to the NBE study, Buffett achieved a Sharpe ratio of 0.76 for the same 30-year period, d! uring which the average mutual fund manager underperformed the market.

So somewhere out there in the world of equities there are Holy Grail investments. It flies in the face of conventional wisdom like the mantra of the high-return tradeoff (high risk, high reward), but the data don't lie. Here are a couple of stocks that could fit into such a strategy.

1. Kimberly-Clark Corp.

Kimberly-Clark is a personal care company that routinely finds itself in lists of top investments, and for good reason. The company is a prime example of a low-volatility stock that has managed to pace or outpace market growth over long periods of time while maintaining a low beta.

Shares have increased nearly 120% over the past five-year period and about 73% over the past 10-year period, slightly higher than the S&P 500 during the first period and on par in the second. With a beta of about 0.25, this growth has been about as stable as possible, and the company has helped lock in long-term investors with a healthy dividend yield of 3% — a dividend that has increased each year since 1972, at that.

Kimberly-Clark owns the brands behind dozens of consumer staples such as Kleenex, Huggies, Scott, and Cottonelle. According to the company's year-end 2013 results, Kimberly-Clark brands hold the largest or second-largest share of markets in more than 80 countries.

Full-year 2013 sales of $21.2 billion were "essentially even" with 2012, although organic sales increased 4% (3% volume and 1% net selling price growth). Sales growth is expected to contract 1% this year, according to a company forecast, but earnings are expected to continue increasing as operating margin expands. Kimberly-Clark forecasts adjusted earnings in a range between $6 and $6.20 per share, up 4 to 7% on the year.

2. Costco Wholesale Corp.

Costco has not only outperformed the market at low volatility, but it's done so with style. Shares of the discount retailer are up 160% over the past five-year period and 225% over! the past! 10-year period, outpacing the S&P 500 in both periods. With a beta of 0.42, volatility is low.

Costco, a big-box retailer blessed with a strong business model, market leadership, and competent executives, pays a starting wage of $11.50 per hour. If you ask CEO Craig Jelinek, he's likely to attribute at least some of his company's success to that fact.

"An important reason for the success of Costco's business model is the attraction and retention of great employees," he said in a statement last year. "Instead of minimizing wages, we know it's a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment and loyalty."

Costco will report earnings at the end of May, and the market appears to be getting increasingly optimistic about the announcement. The retailer recently announced that net sales for the four weeks ended May 4 increased 7% on the year to $8.56 billion. Comparable sales were up 5% over the same period.

3. General Mills Inc.

General Mills is a food company perhaps best known for iconic brands like Cheerios, Haagen-Dazs, Green Giant, and Lucky Charms. Like Kimberly-Clark, General Mills has built itself an empire of leading consumer staples. Shares have climbed more than 106% over the past five years and 136% over the past 10 years, lagging the S&P 500, but not by much. With a beta of 0.22, volatility has been relatively low.

Besides low volatility, General Mills offers a high dividend yield of 3%, currently $1.64 per share. Because of this and its strong record of growth, the company has been considered one of the best bets in the consumer sector, and analysts are expecting more good things in the coming quarter. Earnings are expected to increase 36% on the year to 72 cents per share, while sales are expected to edge 0.4% higher to a mean analyst estimate of $4.43 billion.

Wall St. Cheat Sheet is a USA TODAY content partner offering financial news and commentary. Its content is produ! ced indep! endently of USA TODAY.

E-Trade Ditches the Baby for Kevin Spacey

NEW YORK (TheStreet) -- The baby is gone.

Online brokerage E-Trade Financial ( (ETFC)) got a lot of play out of its commercials with its talking baby. But the ubiquitous ads, which also appeared in six football Super Bowls, are ending. Instead of a grownup baby, E-Trade plans on showing off its mobile capabilities and product offerings through a new campaign with baby-faced grownup Kevin Spacey in an appeal to a different generation.

In a commercial that aired during the NCAA basketball March Madness tournament, the E-Trade baby, voiced by Pete Holmes, walked off the set rather than work with a new cat sidekick. The commercial and subsequent YouTube video, which gained 191,000 views and counting, directs viewers to babyquits.com, which, in turn, re-directs to the E-Trade baby's Facebook page where he posted: "All good memories, E-Trade. I gave you the best year of my life."

The E-Trade baby was created by Grey Global Group, E-Trade's advertising agency since 2007. The funny ads were seen by 500 million to 750 million people and have gone viral many times.

But E-Trade changed its mind on the tot. For starters, the company did not run any Super Bowl commercials this year, which might be because Grey Global resigned the account in 2013 after E-Trade said it was launching an agency review. E-Trade's new advertising company is Ogilvy & Mather. The venerable ad agency has 14 years of experience working with rival TD Ameritrade (AMTD) and will now fashion ads around Spacey, veteran actor and current star of the Netflix ( (NFLX)) show House of Cards.

Stock quotes in this article: ETFC, NFLX, SCHW, AMTD 

In the new commercials, Spacey will star as an E-Trade scout looking for "Type E" people who know how to use the site and can name different product offerings that set it apart from rivals. Those online brokerage rivals include Charles Schwab (SCHW), Fidelity, Scottrade, Tradeking and TD Ameritrade.

In fiscal 2013, E-Trade posted revenue of $1.7 billion. The company added 95,000 new brokerage accounts and passed the three million mark. The company also added $10.4 billion in new assets, to take its total assets over 261 billion.

E-Trade has a market capitalization of $5.8 billion and posted revenue of $1.72 billion in fiscal 2013. Schwab had revenue of $5.4 billion in 2013 and trades with a market capitalization of $32.7 billion. TD Ameritrade has a $16.6 billion market capitalization and saw 2013 revenue of $2.8 billion. Of course, there are other variables like earnings per share and amount of assets, but on a strict price to sales ratio, E-Trade shares look undervalued.

E-Trade shares have a trailing price to sales of 3.3, compared to TD Ameritrade and Charles Schwab with 5.9 and 6.1, respectively. Even to get to a price to sales of 5.0x, E-Trade shares would rise 48%. The company continues to add accounts and assets.

The new focus on product offerings and not just simplicity could cause a plethora of account inflows that could help revenue and profits. E-Trade shares are up around 50% since a June 2010 1:10 split that really helped put the company on the right track.

At the time of publication the author had no position in any of the stocks mentioned. Follow @chriskatje This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Stock quotes in this article: ETFC, NFLX, SCHW, AMTD 

Top Chemical Companies To Buy Right Now

Mike Kane/Bloomberg via Getty Images WASHINGTON -- Orders to U.S. factories fell in July by the sharpest amount in four months, held back by weaker demand for commercial aircraft and heavy machinery. A key category that reflects business investment plans also fell. Factory orders dropped 2.4 percent in July compared with June, when orders rose 1.6 percent, the Commerce Department reported Thursday. Orders for core capital goods, a category viewed as a proxy for business investment spending, fell 4 percent in July. Core capital goods are considered a good measure of businesses' confidence in the economy. They include items that point to expansion -- such as machinery, computers and heavy trucks -- while excluding volatile orders for aircraft and defense. The July setback was expected to be temporary. Orders for durable goods, items expected to last at least three years, declined 7.4 percent, a slightly bigger drop than the 7.3 percent fall estimated in a preliminary report last week. It was the biggest decline since a 12.9 percent fall in August 2012. Orders for nondurable goods, items such as chemicals, food and paper, rose 2.4 percent in July after a 0.5 percent decline in June. Excluding the volatile transportation category, factory goods orders were up 1.2 percent. The big drop in core capital goods orders suggests the third quarter is off to a weaker start than some had hoped. While economists cautioned that it's just one month of data, a few lowered their growth estimates for the July-September quarter after seeing the durable goods report. Some believe that growth may only come in around 1.9 percent for the current quarter, a drop from previous estimates of 2.5 percent growth. Overall manufacturing has slumped this year, hurt by weakness overseas that has dragged on U.S. exports. But there have been signs that factory activity could pick up in the second half of the year. But the Institute for Supply Management reported Tuesday that its closely watched gauge of manufacturing activity rose in August to a reading of 55.7, up from 55.4 in July. That was the highest level since June 2011 and offered encouragement that manufacturing may be starting to pull out of its slowdown. The economy expanded at an annual rate of 2.5 percent in the April-June quarter.

Hot Blue Chip Companies For 2016: Basf SE (BASFY.PK)

BASF SE is a chemical company. The Company operates in six segments: Chemicals, Plastics, Performance Products, Functional Solutions, Agricultural Solutions and Oil & Gas. Chemicals segment offers products in the chemical, electronic, construction, textile, automotive, pharmaceutical and agricultural industries. Plastics segment offers a range of products, system solutions and services. Performance Products help its customers to improve their products and processes. Functional Solutions segment bundles system solutions and products for customers and industries. The Company�� Agricultural Solutions segment includes crop protection products, which guard against fungal diseases, insects and weeds. Its Oil & gas segment is a producer of oil and gas. On April 9, 2009, the Company acquired Ciba Holding AG. In April 2010, Intertek Group plc acquired the Regulatory and Safety Testing businesses of Ciba Expert Services (Ciba ES) from the Company. In December 2010, the Company completed its acquisition of Cognis Holding GmbH from Cognis Holding Luxembourg S.a r.l.

Chemicals

The Company�� Chemicals segment portfolio ranges from basic chemicals, glues and electronic chemicals for the semiconductor and flat panel display industry, to solvents and plasticizers, as well as starting materials for detergents, plastics, textile fibers, paints, coatings and pharmaceuticals. This segment is organized into three divisions: Inorganics, Petrochemicals and Intermediates. The important basic products of the Inorganics division are ammonia, methanol, sodium hydroxide, chlorine, as well as sulfuric and nitric acid. The Petrochemicals division produces products, such as ethylene, propylene, butadiene and benzene, which are produced in steam crackers from naphtha or natural gas. In further processing stages, it produces alcohols, solvents and plasticizers for the chemicals and plastics industries. BASF SE�� Intermediates division develops, produces and markets a range of intermediates of all produc! ers worldwide. The product lines include amines, diols, polyalcohols, acids and specialties. They serve as starting materials for products, such as coatings, plastics, pharmaceuticals, textile fibers, crop protection products, as well as detergents and cleaners.

Plastics

BASF�� Plastics segment is organized into two divisions: Performance Polymers and Polyurethanes. The Performance Polymers division is a supplier of engineering plastics, polyamides and polyamide intermediates, foams and specialty plastics. The Company offers its customers a portfolio of engineering plastics based on polyamide 6 and polyamide 6,6. This is complemented by products Ultradur, Ultraform and Ultrason. For the packaging, textile and food industries, it offers Ultramid, a base product for the manufacturing of fibers and foils. BASF SE�� product range also includes Ecoflex and Ecovio, biodegradable specialty plastics for the packaging industry. Styropor and its refinement Neopor are styrene-based precursors for foams used in insulating material for construction and packaging. The Polyurethanes division is a supplier of basic products, systems and specialties. The Company offers polyurethane products for numerous customer applications. Under brand names, such as Elastoflex and Elastopor, polyurethanes are used, as rigid or flexible foams in construction for furniture and household appliances.

Performance Products

The Performance Products segment consists of the Acrylics & Dispersions, Care Chemicals and Performance Chemicals divisions. Acrylics & Dispersions produces acrylic acid, as well as its derivatives superabsorbents and polymer dispersions. Superabsorbents are used particularly in diapers. Polymer dispersions are used in the production of glues, coatings, nonwoven materials and construction chemicals. The Company�� product portfolio for the paper industry consists of binders, process chemicals and kaolin pigments. Its Care Chemicals portfolio consists of products f! or cleani! ng, care, cosmetics and hygiene. Performance Chemicals pools specialties for various customer industries. The product portfolio consists of antioxidants, pigments, light stabilizers and specialty additives. The division also makes chemicals for the production and finishing of leather and textiles.

Functional Solutions

The Functional Solutions segment consists of the Catalysts, Construction Chemicals and Coatings divisions. The Catalysts division develops catalysts and adsorbents. It produces catalysts that transform pollutants in the exhaust flows of vehicles into harmless chemical and plastics. The Construction Chemicals division is engaged in development of concrete admixtures, such as concrete plasticizers, deferrers and curing agents. It also produces and markets construction systems. The Coatings division is a provider of coatings solutions for automotive and industrial applications. Its brands Glasurit and R-M are for the car refinish business.

Agricultural Solutions

The Agricultural Solutions segment consists of the Crop Protection division. The Company develops and produces active ingredients and formulations for the improvement of crop health and yields, and markets them worldwide. Its portfolio includes fungicides, insecticides, herbicides and seed treatments. Its product Headline contains the active ingredient F500, which is not only used for corn and soybean, but also for numerous other crops.

Oil & Gas

BASF�� oil and gas activities are bundled in the Wintershall Group. Wintershall and its subsidiaries operate in the business sectors exploration and production, and natural gas trading. In the exploration and production of oil and natural gas, the Company focuses on oil and gas regions in Europe, North Africa and South America, as well as Russia and the Caspian Sea region. The Mittelplate oil field in the North Sea tidal flats is the cornerstone of the Company�� oil production in Germany. Wintershall and RWE-D! EA each h! old a 50% interest in this field. During the year ended December 31, 2009, it acquired 25% interest in Cuxhaven concession. It operates 26 offshore platforms in Mittelplate region, of which 19 are actually controlled. In Libya, Wintershall operates eight onshore oil fields in the concessions 96 and 97 and exploits the associated gas released during crude oil production in a gas utilization plant for the local demand. In Mauritania, it operates two onshore exploration blocks. In 2008, Wintershall acquired stakes of 50% each in two exploration areas in the Canadon Asfalto Basin. It supplies Germany and several other European countries. The gas pipeline network operated by WINGAS TRANSPORT connects the markets in Western Europe with a natural gas infrastructure that runs through Eastern Europe and the Russian Federation all the way to the gas fields in Siberia. Other components portfolio include natural gas storage facility in Western Europe, in Rehdn, Germany, and the natural gas storage facility in Haidach, Austria.

Advisors' Opinion:

• [By Markus Aarnio]

  BioAmber expects its advanced bio-based specialty chemicals to compete with petrochemical equivalents that are proven in the market and manufactured by established companies, such as Gadiv Petrochemical Industries, Kawasaki Kasei, DSM (RDSMY.PK) and numerous small Chinese producers including Anqing Hexing Chemical, and Anhui Sunsing Chemicals. In addition, BioAmber's products will compete against other companies in the bio-based specialty chemical industry, both early stage companies, such as Genomatica (for bio-based 1,4 BDO) and Myriant Corporation (for bio-succinic acid), and established companies, such as a collaborative venture between DSM and Roquette Frères S.A. and a collaborative venture between BASF (BASFY.PK) and Purac (both for bio-succinic acid).

Top Chemical Companies To Buy Right Now: Israel Corporation Ltd (ILCO)

Israel Corporation Ltd is an Israel-based holding company. The Company operates mainly through its subsidiaries: Israel Chemicals Ltd, operating in the areas of fertilizers and special chemicals; Oil Refineries Ltd, engaged in crude oil refining, production of fuel products, raw materials for the petrochemical industry and materials for the plastics industry; ZIM Integrated Shipping Services Ltd, operating in the shipping lines��industry through use of tankers, offering delegation, Customs clearance, overland transport, distribution, warehousing, insurance, container terminals, marine terminal operation services and logistic services; I.C. Power Ltd, engaged in the production and sale of electricity, as well as in activities intended for the construction and operation of power stations, and Other subsidiaries, engaged in advanced technology, vehicles, infrastructures for electric-powered vehicles, and clean energy. Advisors' Opinion:

• [By Claudia Maedler]

  The DFM General Index (DFMGI) climbed 4.8 percent to 2,659.93, the highest close since Aug. 26. The measure had plunged as much as 15 percent since reaching a five-year high on Aug. 25 on concern the U.S. would launch a military strike against Syria. Emaar Properties PJSC (EMAAR), the stock with the biggest weighting on the index, jumped 4.7 percent, while Deyaar Development (DEYAAR) PJSC surged 9.1 percent. Israel Corp. (ILCO) led gains in Tel Aviv.

Top Chemical Companies To Buy Right Now: Enzymotec Ltd (ENZY)

Enzymotec Ltd., incorporated on March 08, 1998, is engaged in manufacturing of ingredients and medical foods company. Its technologies, research, and clinical validation process enables the Company to develop differentiated solutions across a variety of products. The Company markets its product portfolio primarily to established global consumer companies and target large and growing consumer health and wellness markets. Its clinically validated products include bio-functional lipid-based compounds designed to address dietary needs, medical disorders and common diseases. The Company operates in two segments: Nutrition and VAYA Pharma. In addition to its existing products, the Company has several other products to address additional indications in the development phase. enzyme processes; lipid modification; lipid analysis; and process technology and development.

Nutrition

The Company�� Nutrition segment develops and manufactures nutritional ingredient products based on lipids, such as phospholipids, which form the structural basis of cell membranes and are easily recognized, incorporated and used by the body. Its customer base for this segment includes formula and nutritional supplement companies such as Biostime and IVC. Its two selling nutritional ingredient products are InFat, a clinically-proven fat ingredient for infant formula, and krill oil. Its other products in this segment are targeted at improving brain health and providing benefits in memory, learning abilities and concentration.

VAYA Pharma

VAYA Pharma, develops, manufactures and sells branded, prescription-only medical foods for the dietary management of patients with certain medical conditions or diseases having special, medically determined nutrient requirements. Although medical foods must be safe and effective as demonstrated in human clinical studies, they do not require the same expensive and time consuming regulatory approval process typical of prescription drugs. In addition to! its existing products, it has several other products to address additional indications in the development phase.

Advisors' Opinion:

• [By Victor Selva]

  Finally, as opposed to what we just discussed, the firm is currently Zacks Rank # 4��ell, and it also has a longer-term recommendation of ��eutral�� A Sell rating indicates that the stock, over the next 1 to 3 months, will perform at an annualized rate of 4.8%, which is not attractive for investors. For investors looking for a Strong Buy Rank, BioLife Solutions, Inc. (BLFS) and Enzymotec Ltd. (ENZY) could be the options.

Top Chemical Companies To Buy Right Now: Ferchem Egypt Fertilizers and Chemicals (FERC)

Ferchem Egypt Fertilizers and Chemicals is an Egypt-based company engaged in the establishment and operation of a factory for mixing and packaging of chemical fertilizers, pesticides, insecticides and hormones, as well as other agricultural related activities. Advisors' Opinion:

• [By Jim Jubak]

  Cheniere also has received other good news on Corpus Christi. To get a permit for the unrestricted export of liquefied natural gas, a facility has to win approval from the US Department of Energy (DOE) and the Federal Energy Regulatory Commission (FERC). DOE has accelerated its permit process, but FERC approval has become a major bottleneck, since the commission needs to coordinate studies from several other agencies before it can complete its review. Cheniere has recently received a scheduling notice from FERC, which looks to put that facility on track for a permit ruling by the end of 2014 or early 2015.

Top Chemical Companies To Buy Right Now: Balchem Corp (BCPC)

Balchem Corporation incorporated on Jan 30, 1967, is engaged in the development, manufacture and marketing of specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical and medical sterilization industries. The Company operates in three segments: Specialty Products, Food, Pharma & Nutrition and Animal Nutrition & Health. The Company sells its products through its own sales force, independent distributors and sales agents. The Company operates five wholly owned domestic subsidiaries, such as BCP Ingredients, Inc., Aberco, Inc., Balchem BV, Balchem Trading BV and Balchem Italia Srl.

Food, Pharma & Nutrition

The Food, Pharma & Nutrition (FPN) segment provides microencapsulation solutions to a variety of applications in food, pharmaceutical and nutritional ingredients to enhance performance of nutritional fortification, processing, mixing, and packaging applications and shelf-life. Major product applications are baked goods, refrigerated and frozen dough systems, processed meats, seasoning blends, confections, and nutritional supplements. The Company also markets human grade choline nutrient products through this segment for wellness applications.

Specialty Products

The Company's Specialty Products segment operates in industry as ARC Specialty Products. Ethylene oxide, at the 100% level, is sold as a sterilant gas, primarily for use in the health care industry. It is used to sterilize a wide range of medical devices because of its versatility and effectiveness in treating hard or soft surfaces, composites, metals, tubing and different types of plastics. The Company's 100% ethylene oxide product is distributed in uniquely designed, recyclable, double-walled, stainless steel drums. Contract sterilizers, medical device manufacturers, and medical gas distributors are the Company's principal customers for this product. In addition, the Company also sells single use canisters with 100% ethylene oxide for uses in medical dev! ice sterilization.

The Company markets and sells propylene oxide as a fumigant to aids in the control of insects and microbiological spoilage and to reduce bacterial and mold contamination in shell and processed nut meats (except peanuts), processed spices, cacao beans, cocoa powder, raisins, figs and prunes. The Company distributes its propylene oxide product primarily in recyclable, single-walled, carbon steel cylinders The Company also sells propylene oxide to customers seeking smaller quantities and whose requirements include utilization in various chemical synthesis applications, to make paints more durable and for manufacturing specialty starches and textile coatings.

Animal Nutrition & Health

The Company's Animal Nutrition & Health (ANH) segment provides the animal nutrition and health markets with products derived from the Company's microencapsulation, chelation, and basic choline chloride technologies. Commercial sales of REASHURE Choline, a microencapsulated choline, NITROSHURETM, a microencapsulated urea, and NIASHURETM, the Company's microencapsulated niacin for dairy cows, boosts health and milk production in transition and lactating dairy cows, delivering nutrient supplements that survive the rumen and are biologically available, providing required nutritional levels. The Company's AMINOSHURE-L product, a rumen-protected lysine for use in dairy rations, gives nutritionists and dairy producers a precise and consistent source of rumen-protected lysine. The Company also markets chelated mineral supplements for uses in animal feed throughout the world. ANH also manufactures and supplies basic choline chloride, an essential nutrient for animal health, predominantly to the poultry and swine industries. The ANH segment also includes choline and certain derivatives manufactured and sold into various industrial applications, predominately as a component for hydraulic fracturing of shale natural gas wells, and methylamines which are a primary building block fo! r the man! ufacture of choline products and are also used in a wide range of industrial applications.

Advisors' Opinion:

• [By John Udovich]

  Small cap ingredients stock Balchem Corporation (NASDAQ: BCPC) jumped 22.76% yesterday on news about an acquisition, meaning its worth taking a closer look at the stock along with potential peers like small cap MGP Ingredients Inc (NASDAQ: MGPI) and the PowerShares Dynamic Food & Beverage ETF (NYSEARCA: PBJ).

• [By Jake L'Ecuyer]

  Equities Trading UP
  Balchem (NASDAQ: BCPC) shares shot up 15.27 percent to $60.08 after the company announced its plans to acquire SensoryEffects for $567 million.

• [By Lisa Levin]

  Balchem (NASDAQ: BCPC) surged 13.56% to $59.19. The volume of Balchem shares traded 499% higher than normal. Balchem announced its plans to aquire SensoryEffects for $567 million.

Top Chemical Companies To Buy Right Now: ICL Israel Chemicals Ltd (ICL)

ICL Israel Chemicals Ltd (ICL) is an Israel-based company, engaged in the fertilizer and specialty chemical sectors. The company operates in three segments: Fertilizers, Industrial Products, and Performance Products. The Fertilizers segment is engaged in the production of standard, granular, fine red and white potash from three sources, as well as in the production of phosphates, such as phosphate rock, phosphoric acid, fertilizers and animal feed addictives. The Industrial Products segment produces flame retardants, such as brominates and organ phosphorus; elemental bromine, and other chemicals. In addition the Performance Products segment produces specialty phosphates, such as technical, food grade and electronic grade phosphoric acid, phosphate salts, food additives and wildfire safety products, as well as alumina and other chemicals. Advisors' Opinion:

• [By Claudia Maedler]

  In Israel, the TA-25 Index (TA-25) gained 1.9 percent at the close in Tel Aviv as Israel Corp. jumped 9 percent, the most since July 2009, to 1,755 shekels. The shares soared along with those of its Israel Chemicals Ltd. (ICL) unit, which advanced 6.4 percent on speculation that a possible change in ownership of Russian potash producer OAO Uralkali could help stabilize prices of the crop nutrient.

Top Chemical Companies To Buy Right Now: Cereplast Inc (CERPQ)

Cereplast, Inc. (Cereplast), incorporated on September 29, 2001, is engaged in developing and commercializing bio-based resins through two product families: Cereplast Compostables Resins, which are compostable, renewable, ecologically sound substitutes for petroleum-based plastics, and Cereplast Sustainables resins (including the Cereplast Hybrid Resins product line), which replaces up to 90% of the petroleum-based content of traditional plastics with materials from renewable resources. The Company primarily conducts its operations through product families, such as Cereplast Compostables resins, Cereplast Hybrid Resins and Cereplast Algae Plastic resins. In October 2011, the Company purchased a manufacturing plant in Assisi (Cannara).

Cereplast Compostables resins are compostable and bio-based, ecologically sound substitutes for petroleum-based plastics targeting primarily compostable bags, single-use food service products and packaging applications. The Company offers 13 commercial grades of Compostable resins in this product line. Cereplast Sustainables resins are partially or fully bio-based, ecologically sound substitutes for fully petroleum-based plastics targeting primarily durable goods, packaging applications. The Company offers six commercial grades of Sustainable resins in this product line. Cereplast Hybrid Resins products replace up to 55% of the petroleum content in conventional plastics with bio-based materials, such as industrial starches sourced from plants. The Hybrid resins line is designed to offer similar properties to traditional polyolefins, such as impact strength and heat deflection temperature, and is compatible with existing converter processes and equipment. The first commercial product with Cereplast Algae Plastic resin is being produced and sold as part of the Company's Sustainables resin family.

The Company's Compostable resins are renewable substitutes for petroleum-based plastics targeting primarily single-use disposables. The Company's Compost! able Resins have been used to produce foodservice ware, including the first line of fully biodegradable and compostable foodservice ware. Cereplast Hybrid Resins uses renewable materials such as starches from corn and tapioca.

Cereplast competes with BASF, Dow Chemical, Lyondell Basell, DuPont, SABIC, Novamont, NatureWorks and Telles.

Advisors' Opinion:

• [By Bryan Murphy]

  The whole thing may seem a little "out there" at first glance, but truth be told, what Metabolix, Inc. does isn't terribly unusual anymore. It's just a little less sexy than what traders and stock speculators usually want to see and hear with their picks. Kraton Performance Polymers Inc. (NYSE:KRA) and the now-bankrupt Cereplast Inc. (OTCMKTS:CERPQ) are/were in the same business, along with several others. [Don't let the Cereplast bankruptcy filing deter you - it wasn't a lack of opportunity that up-ended CERP.]

Top Shipping Companies To Invest In 2016

Top Shipping Companies To Invest In 2016: Powell Industries Inc.(POWL)

Powell Industries, Inc. engages in the design, development, manufacture, and servicing of custom engineered-to-order equipment and systems for the management and control of electrical energy and other critical processes in transportation, environmental, energy, industrial, and utility industries. The company operates in two segments, Electrical Power Products and Process Control Systems. The Electrical Power Products segment offers electrical power distribution and control systems that are used to distribute, monitor, and control the flow of electrical energy, as well as to provide protection to motors, transformers, and other electrically-powered equipment. It offers power control room substation packages, traditional and arc-resistant distribution switchgear, medium-voltage circuit breakers, offshore generator and control modules, monitoring and control communications systems, motor control centers, and bus duct systems directly to end-users or to engineering, procuremen t, and construction firms. This segment serves oil and gas producers, oil and gas pipelines, refineries, petrochemical plants, electrical power generators, public and private utilities, co-generation facilities, mining/metals operations, pulp and paper plants, transportation authorities, governmental agencies, and other industrial customers. The Process Control Systems provides technology solutions, including instrumentation, computer controls, and communications and data management systems to control and manage critical processes and facilities; and technical services to deliver these systems. This segment sells its products and services directly to end-users in transportation, environmental, and energy sectors. The company has operations in Europe, the Far East, the Middle East, Africa, North America, South America, and Central America. Powell Industries, Inc. was founded in 1947 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By Garrett Cook]

  Powell Industries (NASDAQ: POWL) shares tumbled 8.79 percent to $45.35 after the company lowered its FY14 outlook.

  Philip Morris International (NYSE: PM) was down, falling 1.12 percent to $82.76. Analysts at Bank of America downgraded Philip Morris International from Buy to Neutral and lowered the target price to $87.

• [By Garrett Cook]

  Powell Industries (NASDAQ: POWL) shares tumbled 8.93 percent to $45.28 after the company lowered its FY14 outlook.

  Philip Morris International (NYSE: PM) was down, falling 1.02 percent to $82.85. Analysts at Bank of America downgraded Philip Morris International from Buy to Neutral and lowered the target price to $87.

source from Top Stocks To Buy For 2015:http://www.topstocksforum.com/top-shipping-companies-to-invest-in-2016.html

What the Twitter Stock Drop Is Trying to Tell Us

Twitter (NYSE: TWTR) stock took a 13% plunge on Friday in its biggest one-day drop since it went public on Nov. 7, a blip that should warn investors of bad things to come for the over-hyped social media sweetheart.

A downgrade to "Sell" by Macquarie Equity research analyst Ben Schachter on Friday was the likely culprit. The stock opened at $72 per share and closed at $63.75.

"Nothing has changed in the fundamentals to justify the sharp rise," Schachter told clients.

Schachter is referring to TWTR stock's dramatic thrill ride since it went public. Twitter priced its IPO at $26 per share and nearly doubled in trading on its Nov. 7 debut. It ended the day with a 72.7% jump to $44.90 per share. The frenzy drove the seven-year-old microblogging company's market cap to $25 billion.

10 Best Heal Care Stocks To Buy For 2016

December has been another winning month for Twitter. Shares zoomed from $40.78 per share on Dec. 2, to $60.01 per share on Dec. 20, for a 47% rise.

Then last week happened.

It seemed like a merry Christmas for Twitter stock, which went up 22% from Monday to Thursday during shortened holiday trading hours. Additionally, 82.7 million shares were exchanged, making Thursday the stock's busiest day of trading since its IPO.

But another record was set with Friday's 13% plunge - Twitter stock's biggest one-day drop since its IPO.

Besides Schachter's downgrade, S&P Capital Scott Kessler reiterated his "Sell" rating, stating that the stock was still overvalued.

We agree.

"I think the stock has a hard time being $40," Money Morning Chief Investment Strategist Keith Fitz-Gerald said in an appearance today (Monday) on FOX Business' "Varney & Co." "Customers are leaving in droves, you've got a complex thing they can't monetize, and the next best thing is a click away."

 

On the week, Twitter ended up with a 6.2% gain. TWTR is down 3.4% in trading today, at $61.56.

With this bull market growing ever long in the tooth, it's just as important to know which stocks to avoid as which ones to buy - and we're still not sold on Twitter.

What to Consider Before Investing in Twitter Stock

The main question for investors who will consider investing in Twitter stock is this: How will Twitter make money? The answer - and execution - will make or break Twitter stock.

"Twitter hasn't shown any profit potential. [It] may make a fine trading instrument, as long as the party continues, but as an investment? You can #countmeout," Fitz-Gerald wrote in an October piece.

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Twitter NYSE: TWTR Jan 02 loading chart... Price: 67.50 | Ch: 3.85 (5.7%)

The fundamentals of Twitter are simply not solid. Twitter's gross revenue is slowing, up only 6.1% in Q3 2013 from a year ago versus 10.6% in 2012 and 17.1% in 2011.

Meanwhile, net losses are also growing. The company reported a net loss of $133.9 million Q3 2013 versus a loss of $70.7 million in Q3 2012.

It's got a shoddy 232 million a day user base (compared to Facebook (Nasdaq: FB), which is more than 1 billion). The customer base needed to support the advertising that everybody thinks is going to propel Twitter stock just may not exist.

Instead, what drove TWTR stock so high was speculation and hype.

"Traders don't want to miss the run-up when investors recognize potential," Money Morning Capital Wave Strategist Shah Gilani commented when TWTR was trading around $50. "However, they've pushed it up in a momentum frenzy, and we all know what goes up, must come down."

A disciplined trader may see some quick profits from Twitter stock, but Fitz-Gerald recommends investors stay away - there is no long-term potential here.

Besides, there are much better places to put your money to profit from the record market highs we've been seeing.

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Best US Stocks To Invest In Right Now: MFS Multimarket Income Trust (MMT)

MFS Multimarket Income Trust (the Trust) is a closed-end fund and maintains a portfolio that includes investments in investment-grade and high-yield corporate bonds, United States Government securities, and international investment-grade and emerging markets debt securities. The Trust's investment objective is to seek high-current income, but may also consider capital appreciation. During the fiscal year ended October 31, 2007, shares of the Trust provided a total return of 5.19%, at net asset value, underperforming the Multimarket Income Trust Blended Index, the EMBI Global, Government/Mortgage and United States High-Yield indices.

The Trust is managed by Massachusetts Financial Services Company (MFS). MFS normally invests at least 80% of the fund's net assets in fixed income securities. MFS may also invest the fund's assets in equity securities. MFS may invest up to 100% of the fund's assets in lower quality debt instruments, including those that are in def ault. MFS may invest the fund's assets in United States and foreign securities, including emerging market securities.

Advisors' Opinion:

• [By Aaron Levitt]

  Perhaps more importantly for income seekers, due to the use of leverage, many CEFs pay above-average dividends — to the tune of 5 to 8%. Here are some of the best bargains in CEFs today.

  MFS Multimarket Income Trust (MMT)

  Discount to NAV: 11.96%
  Distribution Yield: 6.76%

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/best-us-stocks-to-invest-in-right-now-3.html

States About To Lose The Most Unemployment Insurance

Last week, after years of partisan fighting, Congress approved a two-year budget deal. Not included in the measure were any plans to extend the federal Emergency Unemployment Compensation (EUC) program, which provides additional unemployment benefits for Americans who have exhausted their state-funded assistance. Should the program not be renewed, the Center for Budget and Policy Priorities (CBPP) estimates that 1.3 million unemployed workers will lose access to aid before the New Year.

If the program is not restored, by the end of 2014 4.9 million Americans will not receive EUC benefits they would have otherwise qualified for. If this happens, a number of states will have more than 100,000 residents who will lose access to federal aid. In California, more than 800,000 people could lose these benefits. Based on CBPP figures, 24/7 Wall St. reviewed the 10 states with the most workers who stand to lose access to federal jobless benefits.

One of the most important factors influencing how many people could lose benefits within a state is the size of its population. In California, the nation's most populous state with 38 million residents, more than 836,000 workers are expected to lose access to EUC benefits next year. Eight of the 10 most populous states are among the 10 states with the most people losing benefits due to the expiration of the EUC program.

Because of the weak job market across the U.S., "workers are simply exhausting their benefits before finding a job," Claire McKenna, policy analyst at the National Employment Law Project, noted in an interview with 24/7 Wall St. According to the most recent 12 month figures from the Employment and Training Administration, 45% of the unemployed had lost their state-provided unemployment insurance benefits. In Florida, where more than a quarter of a million people stand to lose access to EUC benefits in 2014, 73% of unemployed workers had already exhausted their eligibility for state-sponsored programs.

The portion of workers unemployed for long stretches — for 15 weeks or more — is especially high in many of the states expected to be hardest-hit by the loss of federal unemployment benefits. As of the third quarter of 2013, eight of the states with the most workers expected to be most impacted by the cuts were among the top third of states for unemployment of 15 weeks or more.

While more than a million Americans wait to hear if they will lose unemployment benefits come December 28, many of the nation's unemployed have already lost the aid they depend on. Workers throughout the U.S. have had to contend with decreases in the benefits provided by federal programs. According to McKenna, the passage of the Middle Class Tax Relief and Job Creation Act last year, "led both to a phase out of the Extended Benefits program, and then it led to a phase down of the Emergency Unemployment Compensation program."

These changes reduced the number of weeks workers could receive unemployment coverage. In all, according to NELP, between 2010 and the twelve months ending in September 2013, the average monthly number of unemployed workers not receiving benefits rose by almost 1.8 million.

In addition to cuts to federal programs, changes to state policies have also played a role in increasing the number of unemployed, uncovered workers. McKenna added that seven states have cut the length of their programs "from the decades-long standard of 26 weeks." In six states, the average monthly number of uncovered, unemployed workers rose by more than 100,000 between 2010 and 2013.

Based on figures obtained from the CBPP, 24/7 Wall St. examined the 10 states with the most residents slated to lose access to EUC benefits in 2014. These figures include those who will lose benefits at the start of the year, as well as those who would have qualified had the program been continued in 2014. We also utilized data from the CBPP on the number of weeks unemployment benefits for workers are available in each state. Figures from NELP on state and federal benefit losses, based on averages from the 2010 calendar year and the 12 months ending in September 2013, were also used. In the article, the 12 months ending in September is referred to as simply “2013.” Additionally, we reviewed figures for state unemployment insurance programs from the Department of Labor's Employment and Training Administration, as well as long-term unemployment and underemployment rates from the Bureau of Labor Statistics (BLS). These figures represent 12 months of data through the third quarter of 2013. BLS figures on unemployment and non-farm payrolls are for November and represent the most recent figures available.

These are the states about to lose the most unemployment insurance.

Top 10 Gold Companies To Watch For 2015

After the protracted and severe decline in gold and gold stocks over the past two years, one should not expect a "V" shaped recovery back to new highs; after a move over nearly 30% in six weeks, a pause would not be unexpected, explains Adrian Day, money manager and editor of Global Analyst.

But having said that, we are quite bullish on gold and gold stocks for the rest of this year (and beyond), and, notwithstanding the possibility of a near-term pullback, would not be selling gold stocks any time soon.

The environment and supply/demand fundamentals remain positive for gold. Monetary policy, here and abroad, continues to be very accommodative, even if "tapering" keeps on track, which, in itself, is a major "if."

The major source of supply last year, and a major reason gold declined, was the ongoing selling from gold ETFs. This selling has abated over the past couple of months and turned into net buying, albeit modestly so, this year.

At minimum, it is difficult to envision another year with similar withdrawals. Equally, hedge funds, which largely exited their bullish bets on gold a year ago, are slowly returning.

5 Best China Stocks To Buy Right Now: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Dan Caplinger]

  On that theory, hard-hit energy stocks that have suffered from the crash in oil prices could stand to benefit. Continental Resources (NYSE: CLR  ) , for instance, lost more than half its value in the last four months of 2014 as the exploration and production company with a huge stake in the Bakken shale play in North Dakota suffered from worries about the sustainability of its long-term growth in light of falling oil. Similarly, many small-cap gold and silver miners struggled through a poor 2014, and so companies like First Majestic Silver (NYSE: AG  ) and IAMGOLD (NYSE: IAG  ) arguably have more to gain from a January bounce.

Top 10 Gold Companies To Watch For 2015: CME Group Inc.(CME)

CME Group Inc. operates the CME, CBOT, NYMEX, and COMEX regulatory exchanges worldwide. The company provides a range of products available across various asset classes, including futures and options on interest rates, equity indexes, energy, agricultural commodities, metals, foreign exchange, weather, and real estate. It offers various products that provide a means of hedging, speculation, and asset allocation relating to the risks associated with interest rate sensitive instruments, equity ownership, changes in the value of foreign currency, credit risk, and changes in the prices of commodities. CME Group owns and operates clearing house, CME Clearing, which provides clearing and settlement services for exchange-traded contracts and counter derivatives transactions; and also engages in real estate operations. Its primary trade execution facilities consist of its CME Globex electronic trading platform and open outcry trading floors, as well as privately negotiated transact ions that are cleared and settled through its clearing house. In addition, the company offers market data services comprising live quotes, delayed quotes, market reports, and historical data services, as well as involves in index services business. CME Group?s customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, and governments. It has strategic partnerships with BM&FBOVESPA S.A., Bursa Malaysia Derivatives, Singapore Exchange Limited, Green Exchange, Dubai Mercantile Exchange, Johannesburg Stock Exchange, and Bolsa Mexicana de Valores, S.A.B. de C.V., as well as joint venture agreement with Dow Jones & Company. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group was founded in 1898 and is headquartered in Chicago, Illinois.

Advisors' Opinion:

• [By Marc Bastow]

  Exchange-traded and over-the-counter derivatives trader CME Group (CME) raised its quarterly dividend 4% to 47 cents per share, payable on Mar. 25 to shareholders of record as of Mar. 10.
  CME Dividend Yield: 2.47%

• [By Roberto Pedone]

  One financial market player that's starting to move within range of triggering a major breakout trade is CME Group (CME), which offers products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. This stock has been in play with the bulls so far in 2013, with shares up sharply by 48%.

  If you take a look at the chart for CME Group, you'll notice that this stock recently formed a triple bottom chart pattern at $70.42, to $69.88 and $70.28 a share. Following that bottom, shares of CME have now started to trend back above its 50-day moving average of $72.70 a share. That move is quickly pushing CME within range of triggering a major breakout trade.

  Traders should now look for long-biased trades in CME if it manages to break out above some near-term overhead resistance levels at $75.50 to $77.65 a share and then once it clears its 52-week high at $79.45 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 1.84 million shares. If that breakout hits soon, then CME will set up to enter new 52-week-high territory above $79.45, which is bullish technical price action. Some possible upside targets off that breakout are $90 to $100 a share.

  Traders can look to buy CME off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $72.70 a share or just below more support at $70 a share. One can also buy CME off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Top 10 Gold Companies To Watch For 2015: Sibanye Gold Ltd (SBGL)

Sibanye Gold Limited (Sibanye Gold), formerly GFI Mining South Africa (Pty) Limited, incorporated on December 12, 2002, is a producer of gold in South Africa. Sibanye Gold is primarily engaged in underground and surface gold mining and related activities, including extraction, and processing. Sibanye Gold�� operations are located in South Africa. Its principal mining operations include Kloof-Driefontein Complex (KDC) and Beatrix. Exploration activities are focused on the extension of existing ore bodies and identification of new ore bodies at existing sites. As of January 10, 2013, Sibanye Gold mined only gold, with silver as a by-product.

KDC Operation

The KDC mine is located in the Gauteng Province of South Africa in the Far West Rand mining district, some 60 kilometers southwest of Johannesburg. KDC consists of the Driefontein and Kloof mines. As of January 10, 2013, KDC is consisted of 13 producing shaft systems that mine different contributions from pillars and open ground and five gold plants of which two process mainly underground ore and three process mainly surface material. Driefontein is situated some 70 kilometers west of Johannesburg. Kloof is situated in the Magisterial District of Westonaria, some 60 kilometers west of Johannesburg.

Beatrix Operation

The Beatrix operation is located in the Free State Province of South Africa, some 240 kilometers southwest of Johannesburg, near Welkom and Virginia, and consists of the Beatrix mine. Beatrix operates under mining rights covering a total area of approximately 16 800 hectares. As of January 10, 2013, Beatrix had four shaft systems, with five ventilation shafts to provide additional up-cast and down-cast ventilation capacity and is serviced by two metallurgical plants. It is a shallow to intermediate-depth mining operation, at depths between 700 meters and 2 200 meters below surface. The mine has a refrigeration and cooling infrastructure in both its North and West Sections. Beatrix is man! aged as three operational sections: the North Section (consists of Shaft No. 3), the South Section (consists of Shaft No. 2 and Shaft No. 1) and the West Section (consists of Shaft No. 4).

Advisors' Opinion:

• [By Lisa Levin]

  Gold: This industry jumped 1.20% by 11:40 am. The top performer in this industry was Sibanye Gold (NYSE: SBGL), which rose 3.2%. Gold futures gained 0.44% to trade at $1,281.00 an ounce.

• [By Lisa Levin]

  Gold: This industry rose 0.65% by 10:25 am ET. The top performer in this industry was Sibanye Gold (NYSE: SBGL), which gained 4.9%. Gold futures fell 0.17% to trade at $1,216.70 an ounce.

Top 10 Gold Companies To Watch For 2015: Iamgold Corporation(IAG)

IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Michael Blair]

  IAMGOLD (IAG) is one of my favorite gold stocks principally because it is a relatively high cost producer with long lived mines. That paradox arises since high cost producers have the most volatility when gold prices change. If they are operating close to break even, a relatively small rise in gold prices makes them quite profitable. Conversely, when prices fall they bleed all over the floor.

• [By Ben Levisohn]

  As a result, Chidley and team upgraded Agnico Eagle Mines (AEM) and�Yamana Gold (AUY) to Neutral from Underweight, and raised Barrick Gold (ABX), Goldcorp (GG) and Iamgold (IAG) to Overweight from Neutral.�Gold Fields (GFI) was downgraded “due to increased risk and also reduced expectations for the South Deep operation,” Chidley says.

• [By Matt DiLallo]

  IAMGOLD (NYSE: IAG  )
  Canadian gold miner IAMGOLD pays a semiannual dividend of $0.125 per share, which equates to a current yield of about 4.45%. As the company's name would imply, its revenues are generated by its gold-mining operations. Currently, the company has six gold mines across three continents as well as several potential projects in the works. The company's current priorities given the slumping gold market include cash preservation, cost reduction, and disciplined capital allocation. While the dividend looks safe for now, given the company's stated policy of not jeopardizing is strong balance sheet, it could be reduced if gold prices fall further. �

Top 10 Gold Companies To Watch For 2015: NEW GOLD INC.(NGD)

New Gold Inc. engages in the acquisition, exploration, extraction, processing, and reclamation of mineral properties. The company primarily explore for gold, silver, and copper deposits. Its operating properties include the Mesquite gold mine in the United States; the Cerro San Pedro gold-silver mine in Mexico; and the Peak gold-copper mine in Australia. The company also has development projects, including the New Afton gold, silver, and copper project in Canada; and a 30% interest in the El Morro copper-gold project in Chile. The company was formerly known as DRC Resources Corporation and changed its name to New Gold Inc. in June 2005. New Gold Inc. was founded in 1980 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Ben Levisohn]

  On an adjusted basis, Eldorado Gold (EGO) has the longest reserve/resource life amongst our coverage companies (39 years) with Goldcorp (GG) having the longest reserve/resource life (23 years) amongst the senior producers versus the group average of 22 years. Kinross Gold (KGC) and Iamgold (IAG) have the shortest adjusted reserve/resource lives amongst the senior and mid-tier producers (18 and 14 years respectively). On a percentage basis, the companies most affected by the adjustment are New Gold (NGD) and Iamgold which both saw reserve/resource lives fall by 47% however, we note that despite the adjustment,�New Gold still has the second longest reserve/resource life in our group (37 years). Newmont Mining was the least affected by the adjustments with reserve/resource life declining by only 12% to 22 years from 25 years.

• [By Ben Levisohn]

  Bridges favorite stocks include Goldcorp, Newmont, Eldorado Gold (EGO) and New Gold (NGD).

  Note, however, that these recommendations are all qualified in one way or another. Investors should keep that in mind before going all in on the gold miners.

• [By Ben Levisohn]

  Hamed singles out Goldcorp (GG) and Yamana Gold (AUY) as two companies that have strong production growth, falling costs, declining capital obligations and less debt than competitors. New Gold (NGD), meanwhile, should have the lowest all-on costs in the group at $731 an ounce, but its capital spending is likely to notes, Hamed says. Hamed rates Goldcorp and Yamana Overweight, while New Gold is rated Equal Weight.

Top 10 Gold Companies To Watch For 2015: Pershing Gold Corp (PGLC)

Pershing Gold Corporation, incorporated on August 2, 2007, is a gold and precious metals exploration company. The Company is pursuing exploration and development opportunities primarily in Nevada. It is focused on exploration at its Relief Canyon properties in Pershing County in northwestern Nevada. None of the Company�� properties contain proven and probable reserves, and all of its activities on all of its properties are exploratory in nature. The Company seeks properties with known mineralization that are in an advanced stage of exploration and have previously undergone some drilling but are under-explored. It is focused on exploration of the Relief Canyon properties, recommissioning the Relief Canyon gold processing facility and, if economically feasible, commencing mining at the Relief Canyon Mine.

Relief Canyon Mine Property

The Company�� Relief Canyon properties totals approximately 25,000 acres and consists of approximately 940 owned unpatented mining claims, 120 owned millsite claims, 170 leased unpatented mining claims, and leased and subleased private lands. The Company drilled 44 holes for approximately 28,500 feet in 2013. This drilling was on land adjacent to the current deposit and focused on extending and upgrading the existing deposit. In January 2013 the Company reported 32,541,000 tons of mineralized material at an average grade of 0.017 ounces of gold per ton and a cut-off grade of 0.0046 ounces of gold per ton.

Advisors' Opinion:

• [By ValueInvestor7]

  I listen to investing advice from self-made billionaire investors, and I try to ignore advice from everyone else. I suspect readers on this website will appreciate this, where thankfully the Focus is still Gurus. To this end, I bring you the instructive story of Pershing Gold Corp (PGLC) and Levon Resources (TSE: LVN) (LVNVF).

Top 10 Gold Companies To Watch For 2015: Agnico-Eagle Mines Limited(AEM)

Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. The company primarily explores for gold, as well as silver, copper, zinc, and lead. Its flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. The company was founded in 1953 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Markus Aarnio]

  Other gold miners that have seen intensive insider buying during the past four months include St. Andrew Goldfields (STADF.PK), Continental Gold (CGOOF.PK), Kinross (KGC) and Agnico-Eagle Mines (AEM).

• [By Dan Caplinger]

  In the longer term, IAMGOLD could potential challenges from higher taxes on some of its holdings. The Canadian province of Quebec is considering changing the current 16% profit tax either to what amounts to a gross revenue tax or to a more progressive profit tax with higher rates on high-margin mining operations. Under current conditions, those taxes might not have much effect either on IAMGOLD or rivals Agnico-Eagle (NYSE: AEM  ) and Goldcorp (NYSE: GG  ) , both of which also have projects in the province, but it's hard to predict how a changes might affect future results if they take effect.

• [By Patricio Kehoe] e, has cash costs of $912 per ounce, and Agnico Eagle�� costs do not even reach the $700 per ounce mark. Hence, it comes as little surprise that revenue has been decreasing steadily, since gold prices are hovering around the $1300 mark at best. As the company is hemorrhaging money, investment gurus the like of John Burbank and Seth Klarman have decided to sell their entire stake in the firm. I agree with this bearish stance, and recommend investors stay away from Kinross Gold.

  Any Long Term Investment?
  
  If you were to follow Jean-Marie Eveillard�� purchases, one would be inclined to see good growth prospects for Agnico Eagle, and thus believe in this stock�� potential. And, you wouldn�� be wrong, as the firm has been growing at a steady pace, with no end in sight to its expansion possibilities. However, with a 171% price premium, investors might be better off waiting until a more favorable entry-point is available. Nevertheless, as a long-term investment, I feel highly optimistic and would thus even consider paying the additional cost.

  Disclosure: Patricio Kehoe holds no position in any stocks mentioned.
  
  Also check out: Jean-Marie Eveillard Undervalued Stocks Jean-Marie Eveillard Top Growth Companies Jean-Marie Eveillard High Yield stocks, and Stocks that Jean-Marie Eveillard keeps buying John Burbank Undervalued Stocks John Burbank Top Growth Companies John Burbank High Yield stocks, and Stocks that John Burbank keeps buying
  The Strategy of Ben Graham ��Warren Buffett�� Mentor From 1923 to 1957 Warren Buffett�� mentor, Ben Graham, followed a strategy of investing in net-nets. He said: ��t always seemed, and still seems ridiculously simple to say that if one can acquire a diversified group of common stocks at a price less than the...net current assets alone��he results should be quite satisfactory. They were so in our experience, for more than 30 years.��br> Today net-nets are rare. They are collected under Gu

• [By Ben Levisohn]

  As a result, Chidley and team upgraded Agnico Eagle Mines (AEM) and�Yamana Gold (AUY) to Neutral from Underweight, and raised Barrick Gold (ABX), Goldcorp (GG) and Iamgold (IAG) to Overweight from Neutral.�Gold Fields (GFI) was downgraded “due to increased risk and also reduced expectations for the South Deep operation,” Chidley says.

How can an investor maximize the value of his investments?

What would it be like if we tried to click the mouse pointer on an icon and the icon kept shifting position? It would definitely irritate and frustrate us. Similarly "value" is something which can behave like the irritant icon.

In the financial world which "value" is "true value" for a particular investment can be difficult if not impossible to determine. This is because the parameters based on which evaluation is being made may shift, throwing up a different figure each time.

Value

So what is "value" ? It is generally believed that the value of a stock is built around the organization's patents, brand, fixed assets like land and building, financial resources, human capital, financial resources, growth potential or ability to produce earnings and cash flow.

Many would be of the opinion that it is the organization's ability to produce consistent earnings over a period of time. At the other end of the spectrum would be something called "liquidation value", which in simple terms would be the short-term assets which are pegged at a higher value, after meeting all liabilities than the market quoted capitalization.

Back in the 1950s' people were interested about the information pertaining to business enterprises which were on the verge of liquidation as the prices tended to move north when such an eventuality presented itself.

"Worth more dead than alive" was a rhetoric which was popularly used to describe such opportunities. However it is important to note that the 'value of today' may be different from what it was yesterday and could vary with the "price of tomorrow".

It boils down to the fact that it is of paramount importance to the investor to get his assessments right, as that is where the crux of the matter lies. A conclusive assessment of the stock value which the investor loosely believes in is far better than an inconclusive or incorrect opinion on valuation which is firmly believed and implemented. 

The Relationship between Price and Value

It is always true to say that "value for money" is derived from acquiring an article or making an investment when the utility derived from the object (article or investment) is greater than the price paid for it. This analogy may be further extended to state that "Investment success doesn't come from buying good things but rather buying them well".

Identifying Opportunities for Value Investments

Investment markets are of a nature which creates opportunities from people who buy and sell emotionally and from people who trade in the market instead of investing in the market. That's why Warren

Buffet quoted that ' Stock market is designed to transfer money from Active to the Patient. It is important to note that the investor needs to make a concerted attempt towards understanding the mind and motives of other investors. It can provide enriching knowledge and experience required for sustained profitability in the financial world.

On the flip side, investing aimlessly would be like chasing a mirage. An oasis which seems to exist but actually may or may not be there. It leads to a situation where the investor will either gain a windfall or  incur stupendous losses. It can be safely concluded that buying something at less than its intrinsic value is what it is all about in the investment market.

Adding Value

No prediction is cent percent foolproof unless proved so in the long run. The full risk in a portfolio can only be understood threadbare until hindsight is visible and by then perhaps the worst is over anyway.

It is always a good policy to weigh the management performance against the market volatility to have a fair estimate of the investment opportunity when such a possibility presents itself.

Value Investing Skills

What kind of result a person can expect if he masters the value investing skills? Here is a matrix which has been used by Howard Marks to compare the priorities and expected outcome of two different investors and an assessment of their respective prospects:

Aggressive Investor Defensive Investor

Without Skill Records high gains when the market is on an upswing and looses heavily when the market moves down. Does not lose much when the market moves down but does not gain much either when the market moves up.

With Skill Records high gains when the market moves up but does not lose as much when the market moves down. Does not lose much when the market moves down but does record good gains when the market moves up.
 
Tips to become a better Investor

So what does the investor do to assess value of an investment which he or she has made or proposes to make in the future?

Well, if we may emulate Warren Buffet, the best thing to do is to gather as much relevant information as possible. Buffet, is known to read the Wall Street Journal, New York Times, Washington Post besides the business section of the Los Angeles Times, Chicago Tribune, Fortune, Forbes and Business Week.

1. Read the business section of your daily newspaper with particular attention to news on companies whose stock you hold or propose to hold.

2. Gather a fair idea of the different economic parameters which have an effect on stock price- petroleum prices, GDP figures, ratings by international rating agencies etc.

3. Fix your own parameters as regards your risk taking ability, the amount of investment to be made and other investment priorities.

The above should hold every investor in good stead on a long term basis. 

	Aggressive Investor	Defensive Investor
Without Skill	Records high gains when the market is on an upswing and looses heavily when the market moves down.	Does not lose much when the market moves down but does not gain much either when the market moves up.
With SKill	Records high gains when the market moves up but does not lose as much when the market moves down.	Does not lose much when the market moves down but does record good gains when the market moves up.

The author is Ramalingam K, CFP CM is the Chief Financial Planner at holisticinvestment.in, a leading Financial Planning and Wealth Management company. 

Hot Computer Hardware Companies To Invest In Right Now

It’s that kind of year for coal miners, the kind where investors wonder what will be left in their stocking this Christmas, a better 2014 or another lump of, well, coal.

REUTERS

Alpha Natural Resources (ANR) has dropped 23% in 2013, while Arch Coal (ACI) has fallen 39% and Peabody Energy (BTU) is off 28%. Only Consol Energy (CNX) among the larger miners is up this year, having gained a stock-market lagging 15% after saying it would look for ways to reduce its exposure to the business.

But Alpha Natural Resources is doing its best to turn it around. Today the coal miner said it would sell its stake in a joint venture for $300 million in cash and stock, adding a needed cash infusion.

Sterne Agee’s Michael S. Dudas and Satyadeep Jain�believe that management has “[unlocked] substantial value for its gas assets.” They write:

Top 5 Machinery Stocks To Invest In 2016: Fusion-io Inc (FIO)

Fusion-io Inc (Fusion) is a provider of datacenter solutions that accelerate databases, virtualization, cloud computing, big data, and the applications that help drive business from the smallest e-tailers to some of the largest data centers, social media leaders, and Fortune Global 500 businesses. The Company's integrated hardware and software platform enables the decentralization of data from legacy architectures and specialized hardware. The Company sells its solutions through a global direct sales force, original equipment manufacturers, or OEMs, including Cisco, Dell, HP, and IBM, and other channel partners. In August 2011, the Company acquired IO Turbine, Inc.,. Effective March 18, 2013, the Company acquired ID7.

Fusion-io's ioMemory hardware is a sub-system connecting a large array of industry-standard NAND Flash memory through the Company's data-path controller and its virtual storage layer, or VSL, software to create a high capacity memory tier that natively attaches to a server's PCI-Express peripheral bus (PCIe).

The Company's portfolio of storage memory products incorporates the Company's ioMemory hardware combined with its virtual storage layer (VSL) and caching software into its family of ioDrive, ioFX, and ioCache enterprise grade products. The Company's ioDrive products work in conjunction with the Company's directCache data-tiering software, ioTurbine virtualization software, ioSphere management system, and ION Data Accelerator software. The Company's latest ioDrive, ioFX, and ioCache product families are a line of PCIe standard form-factor storage memory platforms that combine one or more ioMemory sub-systems with the Company's VSL software.

The Company's directCache software extends the Company's ioMemory based platforms and permits interoperability with traditional direct-attached, network-attached, storage area network attached, and appliance attached backend storage systems. The Company's ioTurbine virtualization software extends the Company! 's ioMemory platform and permits host-based data acceleration to specifically address the demand for high-density, high-performance server, and desktop virtualization.

ioSphere is a suite of management software purpose-built for the Company's storage memory infrastructure and designed around its application acceleration platform. ioSphere software is accessible through a graphical user interface that enables datacenter administrators to centrally configure, monitor, manage, and tune all distributed ioMemory devices throughout the datacenter. In addition, this software offers real-time, predictive, and historical reporting of ioMemory's performance and wear.

The Company's ION Data Accelerator software transforms server platforms into application acceleration appliances that share Fusion ioMemory across applications. ION Data Accelerator delivers Fusion-io performance on open server platforms with software-defined storage, or SDS, for applications such as Oracle RAC, Microsoft SQL Server, MySQL, and SAP HANA, along with other applications where shared storage aids deployment. The Company's original equipment manufacturer�� (OEMs), including Cisco, Dell, HP, and IBM, sell branded storage memory solutions based on the Company's standard products as well as custom form-factor versions to fit specific applications.

The Company competes with EMC Corporation, Hewlett-Packard Development Company, L.P, Texas Memory Systems, Oracle, Adaptec, Inc., LSI Corporation, Sandisk, Corp, IBM, CA, Inc, Nagios Enterprises, LLC., Hitachi Data, Huawei Technologies, Co., Intel Corp., LSI Corporation, Marvell Semiconductor, Inc., Micron Technology, Inc., OCZ Technology Group, Inc., Samsung Electronics, Inc., SanDisk, Corp., Seagate Technology, STEC, Inc., Toshiba Corp., and Western Digital Corp.

Advisors' Opinion:

• [By gunjinvest]

  To enhance its equipment business, Fusion-io (FIO) acquired Nexgen Storage that pioneers in storage devices, for $119 million. Nexgen drive enabled with Fusion ioMemory will serve small and medium-size businesses. The mix of both the organization's products on x86 servers will make hybrid storage that will offer flash storage devices at a lower cost.

• [By Ben Levisohn]

  Knapp and Slover were also kind enough to provide a screen of stocks that could outperform. They started with the Russell 2000, removed the smallest 40% based on market cap (the aforementioned liquidity issues), then selected the 5% worst performers from among the 30% cheapest stocks based on book-to-price. The result is a bunch of names you never heard of, including Infinity Pharmaceuticals (INFI), Fusion-IO (FIO), Walter Energy (WLT), Hecla Mining (HL) and Molycorp�(MCP).

Hot Computer Hardware Companies To Invest In Right Now: Imation Corp (IMN)

Imation Corp. (Imation) is a global scalable storage and data security company. The Company�� portfolio includes tiered storage and security offerings for business and products designed to manage audio and video information in the home. The Company�� global brand portfolio includes the Imation brand, the Memorex brand, the XtremeMac and MXI Security brands. Imation is also the exclusive licensee of the TDK Life on Record brand. Its three product categories include traditional storage, secure and scalable storage, and audio and video information. It operates in four geographic segments: Americas, Europe, North Asia and South Asia. On February 28, 2011, it acquired all of the assets of Encryptx Corporation. On June 4, 2011, it acquired the assets of MXI Security, from Memory Experts International Inc. On October 4, 2011 it acquired the secure data storage hardware assets of IronKey Systems Inc. In December 2011, it acquired the data deduplication technology from Nine Technology.

The Americas segment includes North America, Central America and South America. The Europe segment includes Europe and parts of Africa. North Asia segment includes Japan, China, Hong Kong, Korea and Taiwan. The South Asia segment includes Australia, Singapore, India, the Middle East and parts of Africa.

Imation brand products include magnetic tape media, recordable compact discs (CDs), digital versatile Discs (DVDs) and Blu-ray discs, flash products and hard disk drives. The Imation brand includes the DataGuard Data Protection Appliances, InfiniVault Storage appliances and removable disk technology (RDX) removable hard disk storage systems. Imation Defender products include secure storage flash drives and external hard drives. Imation brand products are sold throughout the worldwide and target the commercial user and individual consumer. Imation Defender products include secure storage flash drives and external hard drives. TDK Life on Record brand products include recordable CDs, DVDs and Blu-ray d! iscs, flash drives, tape cartridges, headphones and computer speakers which are sold to commercial customers and individual consumers. TDK Life on Record brand products is sold throughout the world.

XtremeMac brand products include cases, chargers and audio solutions to protect, power and play Apple iPad, iPod, iPhone and other devices. XtremeMac products are developed for Apple enthusiasts and are available worldwide. Its MXI Security brand includes secure storage flash drives and external hard drives, as well as software solutions to help manage portable security devices on the network.

Traditional Storage

The Company�� optical media products consist of CDs, DVDs and Blu-ray recordable media. It sells Blu-ray discs, which are used primarily for recording high-definition video content. Its recordable optical media products are sold through a variety of retail and commercial distribution channels and sourced from manufacturers primarily in Taiwan and India. Optical storage capacities range from 650 megabyte CD-R (recordable) and CD-RW (rewritable) optical discs to 9.4 gigabyte double-sided DVD optical discs and Blu-ray discs with 25 gigabyte to 100 gigabyte of capacity. Its optical media is sold throughout the world under brands it owns or controls, including Imation, Memorex and TDK Life on Record and under a distribution agreement for the Hewlett Packard brand.

The Company�� magnetic tape media products are used for back-up, business and operational continuity planning, disaster recovery, near-line data storage and retrieval and for mass and archival storage. Other traditional storage products include primarily optical drives and audio and video tape media.

Secure and Scalable Storage

Secure storage products and software include universal serial bus (USB) flash drives and external hard drives designed to meet the security standards to protect data at rest with Federal Information Processing Standard (FIPS) validation, pa! ssword an! d biometric authentication, including biometric USB drives, encrypted and biometric hard disk drives, secure portable desktop solutions and software solutions. It also sells standard USB flash drives and external hard disk drives throughout the world under its Imation, Memorex and TDK Life on Record brands. It sources these products from manufacturers primarily in Asia and the United States and sell them through a variety of retail and commercial distribution channels around the world. Scalable storage products include data protection appliances, such as DataGuard network attached storage backup appliances and InfiniVault active archive appliances.

Audio and Video Information

The Company�� audio and video information products include Apple iPad, iPod and iPhone accessories, headphones, CD players, alarm clocks, portable boom boxes, moving picture experts group layer-3 audio (MP3) players, and speakers sold under the Memorex, TDK Life on Record and XtremeMac brands. It designs products to meet user needs and source these products from manufacturers throughout Asia.

The Company competes with Maxell, JVC, Sony, Verbatim, Fuji, HP, SanDisk, Lexar, PNY and Kingston.

Advisors' Opinion:

• [By John Udovich]

  As cyber theft and hacking continues to grow, mir or small cap stocks like Splunk Inc (NASDAQ: SPLK), Imation Corp (NYSE: IMN) and Staffing 360 Solutions Inc (OTCBB: STAF)�are some overlooked, indirect or just plain interesting plays on cybersecurity that investors might want to take note of:

• [By Geoff Gannon] g>4. Tuesday Morning (TUES)
  5. Pacific Biosciences (PACB)
  6. Maxygen (MAXY)
  7. Westell (WSTL)
  8. Volt Information Sciences (VISI)
  9. Yasheng Group (YHGG)

  I don�� love that list. I like the 14 past picks in the Ben Graham Net-Net Newsletter�� model portfolio much better. The newsletter only owns 1 of those 9 net-nets. Remember, we have 9 net-nets out of the 14 picked for the newsletter that are trading below where we picked them. So, obviously I like those 9 net-nets a lot better than these 9 net-nets.

  Like I said, I wouldn�� encourage you to buy those nine net-nets shown here ��even if you��e looking to put a lot of money into net-nets. Instead you should look at your favorite net-nets ��or the net-nets in the Ben Graham: Net-Net Newsletter ��and use them as a buy list you are constantly placing orders from month after month.

  Building a diversified collection of net-net through many months of purchasing is a better way to invest a lot of money in net-nets than trying to focus on the biggest net-nets.

  Read Geoff�� Other Articles
  Ask Geoff a Question
  Check out the Buffe

Hot Computer Hardware Companies To Invest In Right Now: Nyxio Technologies Corp (NYXO)

Nyxio Technologies Corporation, incorporated on June 08, 2006, through its wholly owned subsidiary Nyxio Technologies Inc. (Nyxio), develop and provide technology for the entertainment and commercial markets within the consumer electronic industry. The Company�� product includes VioSphere Smart television (TV), a flat screen TV with a fully integrated personal computer.

The Realm is an all in one personal computer (PC)/ TV, combining the latest in PC technology with high definition (HD) TV. The Realm Pro, which is all in One PC/TV geared for commercial and digital signage markets. Venture MMV, which is a mobile media viewer is a new class of video eyewear offering designer styling in a sleek ergonomic design with features and performance. The Vuzion is a TV with Android operating system (OS) built in enabling 400,000 Android applications on a TV.

The Company competes with Sony, Samsung, LG, Vizio, Apple, Dell, and HP.

Advisors' Opinion:

• [By Peter Graham]

  Nyxio Technologies Corp (OTCMKTS: NYXO), COREwafer Industries Inc (OTCMKTS: WAFR) and NanoTech Entertainment, Inc (OTCMKTS: NTEK) are three small cap stocks in some very diverse industries. In fact, one of these stocks just bought a 3D ice sculpture business. So will investors see their investment melt with that small cap stock�along with the other two? Here is a closer look to help you decide for yourself:��

Hot Computer Hardware Companies To Invest In Right Now: Steel Excel Inc (SXCL)

Steel Excel Inc., formerly ADPT Corp., incorporated in 1981, is primarily focused on capital redeployment and identification of new business operations. The identification of new business operations includes, but is not limited to, the oilfield servicing, sports, training, education, entertainment and lifestyle businesses. The Company operates in two segments: oilfield servicing and sports-related segment. During the year ended December 31, 2011, the Company acquired two sports-related businesses and one oilfield servicing business. On June 27, 2011, the Company acquired Baseball Heaven LLC and Baseball Cafe, Inc. On August 15, 2011, the Company acquired The Show, LLC. On December 7, 2011, the Company acquired Rogue Pressure Services, LLC. On February 9, 2012, the Company acquired Eagle Well Services, Inc. In May 2012, the Company acquired Sun Well Service, Inc. Effective December 16, 2013, Steel Excel Inc acquired Black Hawk Energy Services Inc, a provider of oil and gas field services.

The Company�� oilfield servicing segment provides services in horizontal drilling and hydraulic fracturing. Services include snubbing services (controlled installation and removal of all tubulars - drill strings and production strings) in and out of the wellbore with the well under full pressure, flowtesting, and hydraulic work over/simultaneous operations (allows customers to perform multiple tasks on multiple wells on one pad at the same time). The Company�� sports-related services segment provides services related to marketing and providing baseball facility services, including training camps, summer camps, leagues and tournaments, concession and catering events and other events and related Websites. In addition, the Company outfit little league baseball and softball players and coaches in official major league baseball uniforms.

Advisors' Opinion:

• [By Geoff Gannon]

  1. Steel Excel (SXCL)
  2. FormFactor (FORM)
  3. Imation (IMN)
  4. Tuesday Morning (TUES)
  5. Pacific Biosciences (PACB)
  6. Maxygen (MAXY)
  7. Westell (WSTL)
  8. Volt Information Sciences (VISI)
  9. Yasheng Group (YHGG)

Hot Computer Hardware Companies To Invest In Right Now: Violin Memory Inc (VMEM)

Violin Memory, Inc., incorporated on March 9, 2005, is pioneering a new class of flash-based storage systems that are designed to bring storage performance in-line with high-speed applications, servers and networks. The Company�� Flash Memory Arrays are specifically designed at each level of the system architecture starting with memory and optimized through the array to leverage the inherent capabilities of flash memory and meet the sustained requirements of business-critical applications, virtualized environments and Big Data solutions in enterprise data centers. The Company�� Velocity Peripheral Component Interconnect Express (PCIe), Flash Memory Cards leverage its persistent memory-based architecture in servers and are optimized for applications that require continuous access to quantities of low latency persistent memory located directly in servers.

The Company�� storage systems are based on a four-layer hardware architecture, which is integrated with its Violin Memory Operating System (vMOS), software stack to optimize the management of flash memory at each level of its system architecture. The Company�� Velocity PCIe Flash Memory Cards leverage its expertise in persistent memory-based storage and controller design, as well as its vMOS software stack, to offer a differentiated architecture in a deployable PCIe form factor.

Advisors' Opinion:

• [By Jayson Derrick]

  Violin Memory (NASDAQ: VMEM) dove following its third quarter results and guidance that was released last night. The company reported a third quarter EPS loss of $0.63 while the Street was looking for a loss of $0.47. Revenue of $28.3 million fell short of the Street's expectation of $31.7 million. Shares were downgraded by J.P. Morgan, (NYSE: JPM) Deutsche Bank (NYSE: DB) and Pacific Crest. Shares lost 48.33 percent, closing at $3.10.

• [By Steve Symington]

  What: Shares of Violin Memory, (NYSE: VMEM  ) plunged 48% Friday after the high-speed data storage specialist came up well short of analysts' estimates with its first quarterly report as a public company.

• [By John Udovich]

  On Monday, small cap storage stock Violin Memory Inc (NYSE: VMEM) surged 21.56% after booting out its CEO in the wake of disappointing earnings and IPO, meaning its time to take a closer look at the stock along with the performance of potential or better known storage peers like large caps SanDisk Corporation (NASDAQ: SNDK) and Western Digital Corp (NASDAQ: WDC) plus small cap Dot Hill Systems Corp (NASDAQ: HILL).

• [By Paul Ausick]

  Stocks on the Move: J.C. Penney Co. Inc. (NYSE: JCP) is down 13.9% at $8.97 after a secondary stock offering�that might have been designed to drive out short sellers. Violin Memory Inc. (NASDAQ: VMEM) is down 21% at $7.11 on a lousy IPO�day. RingCentral Inc. (NYSE: RNG) is up 39.5% at $18.14 on a good IPO day.

Hot Computer Hardware Companies To Invest In Right Now: George Risk Industries Inc (RSKIA)

George Risk Industries, Inc. (GRI), incorporated on February 21, 1961, is engaged in the design, manufacture and sale of computer keyboards, push button switches, burglar alarm components and systems, pool alarms, thermostats, EZ Duct wire covers and water sensors. GRI is a diversified manufacturer of electronic components, consisting of the security industries variety of door and window contact switches, environmental products, proximity switches and custom keyboards. The Company operates in two segments: security alarm products and security alarm products GRI�� security burglar alarm products comprise approximately 84% of net revenues and are sold through distributors and alarm dealers/installers. These products are used for residential, commercial, industrial and government installations. Its products include security products/ magnetic reed switches, data entry peripherals, pushbutton switches, custom engraved keycaps and proximity sensors.

The security segment has approximately 3,000 customers. One of the distributors, ADI accounts for approximately 40% of the Company's sales of these products. The keyboard segment has approximately 800 customers. Keyboard products are sold to original equipment manufacturers to their specifications and to distributors of off-the-shelf keyboards of proprietary design. GRI owns and operates its main manufacturing plant and offices in Kimball, Nebraska with a satellite plant 40 miles away in Gering, Nebraska.

Advisors' Opinion:

• [By Geoff Gannon] things I said was that I knew George Risk's materials cost was higher than some competitors' selling price. The fact that any company could survive under conditions like that immediately suggested that dollars paid for the product was not the key concern for this product.

  Perceived costs had to involve other concerns like customization, shipping speed, reliability, etc. Because it was a low cost product going into a higher cost product going into very high cost projects it seemed likely there was the opportunity to raise prices if needed. And that's what they ended up doing. The important clue for me in that investigation was the severe cost disadvantage George Risk had. You couldn�� compete at such a cost disadvantage unless price was less important than I initially thought.

  I think you will find that most of these insights are not available in the financial statements. They come from reading the 10-Ks of all companies in the industry, reading articles about the companies, listening to all conference call transcripts, etc.

  For example, there is not much in the financial statements of Carnival (CCL) that explains how the cruise business really works. But all of the companies in the industry (CCL, RCL and NCL) freely discuss the economics of their business in great detail. They break out costs before and after fuel. They give you per-passenger prices of how much newly built ships cost. They give you lots and lots of details. They explain how they price their product (the way airlines do) and so on. There is an extreme level of detailed explanation of the business in the various conference calls, 10-Ks, etc.

  A great source for this information is going back to the time the company went public or at least finding the S-1 of a competitor. When a company goes public it often gives much more detail into product economics, etc., than it will later on when it reports annual results.

  That is also a good place to learn about market share, com

• [By Geoff Gannon] >Ark Restaurants (ARKR). When I bought them - and even now - I think their return on buyback would be high and I'd be in favor of it. However, the stocks are illiquid and their free cash flow relative to the dollar value of freely traded shares is not high. As a result, I'm always in favor of RSKIA and ARKR buying back stock. But, I understand it's very hard for them to do in practice unless there is a meaningful holder who signals he wants out of the stock.

  My approach to buybacks is pretty simple. One, I prefer them. Two, I look at the share count history over the last 10 to 20 years as my guide to what the company might do in the future - I want a pattern of predictable behavior. Generally, that means a continuously shrinking share count that shrinks in bull markets and bear markets, panics and recessions and booms and busts and so on. Three, if I'm a buyer of the stock - then the company should be a buyer of its own stock. No questions asked on that one. If the stock is good enough for me to buy it's clearly good enough for the company to buy. Finally, I look for the return on buyback. I tend to focus on the earning power the company is buying relative to the net cash it is spending. If a company has cash on its balance sheet, the amount of net cash consumed by a buyback will be less than it appears because I will end up with a greater percentage ownership of the resulting balance sheet as well as the income statement.

  I want the return on buyback to always be at least 10%. As a rule, the average company will only get returns on its buybacks of 10% or higher if it pays less than 15 times normal earnings. In special cases - fast growing companies, companies where free cash flow vastly exceeds reported income, etc. - it is possible that buybacks above 15 times earnings will return more than 10%. It almost never makes sense for a company to buy back stock at over 25 times earnings. So, for most companies, under 15 times earnings is the green zone for bu