Apple and Google Show That Stock Splits Are Cool Again

Spencer Platt/Getty Images It seems as if tech darlings don't want to scare off potential investors with sticker shock. Last Wednesday Apple (AAPL) became the latest company with a hefty share price to declare a stock split, agreeing to exchange every single share for seven shares trading at a much lower price. Stock splits are zero sum games. If an investor has 100 shares of Apple with the stock at $560 at the time of the 7-for-1 split, that investor would own 700 shares with a stock price of $80. But no matter how you slice it, the math still results in a $56,000 stake in the consumer tech giant. However, many think that there's a psychological benefit to having a stock appear to have a lower price. Apple isn't alone. Google (GOOG) also recently completed what was in effect a 2-for-1 stock split by giving investors a new share of non-voting stock for every share that they owned at the time. With Apple and Google validating the practice, don't be surprised if more stocks with large share prices go this route. A Split by Any Other Name Apple executed 2-for-1 stock splits in 1987, 2000 and 2005. It was quick on the trigger whenever its stock approached high double digits or poked its head into triple digits. However, the stock splits went away after that. Apple's stock continue to shoot higher as the iPod grew in popularity, followed by the introduction of the iPhone in 2007 and the iPad a few years later. Why did the company alter its behavior? The best bet is that Google changed the game when it went public around the time of Apple's final stock split. Google wanted to go public at a price that was as high as $135 during the summer of 2004. It had to settle for $85, but the message was clear: Google wasn't going to try to cater to conventional whims where companies would perform pre-IPO splits in order to hit the market at more accessible prices between $10 and 30. Google's reluctance to declare stock splits through nearly 10 years of trading let everyone know that it was in a race to hit the highest share price possible. It finally gave up the game a few weeks ago when it broke through the $1,000 ceiling, announcing a spinoff that was essentially a 2-for-1 stock split. Google's move now leaves just four stocks trading for more than $1,000 a share. The Rise and Fall and Rise of Stock Splits Stock splits were fashionable in the late 20th century. Retail investors were buying stocks in round lots of 100 shares at a time, and a company didn't want to limit its appeal. Individual investors who had just $20,000 to invest in a new stock would gravitate to 100 shares of a stock at $20 than to buy 20 shares of a stock at $100. Even today, some investors argue that a stock price can be too high. Market cap is the product of a stock's price and the number of shares outstanding. The stock price on its own is immaterial. A stock can be expensive if it's overvalued relative to its fundamentals, but there's really no such thing as a share price that is too high on its own. It's true that the greatest investor of our time is not a fan of stock splits. Warren Buffett has refused to declare a stock split on Berkshire Hathaway (BRK-A), though he reluctantly went on to offer a new class of shares (BRK-B) at a lower price several years ago. However, with the exception of a handful of successful companies, most companies don't like to see their prices get too high.

Pending Home Sales Jump, End Losing Streak

Justin Sullivan/Getty Images WASHINGTON -- Contracts to buy previously owned U.S. homes rose in March for the first time in nine months, a sign the housing market could be stabilizing after suffering a setback from a rise in interest rates and a severe winter. The National Association of Realtors said Monday its pending home sales index, based on contracts signed last month, increased 3.4 percent to 97.4. The increase beat economists' expectations for a 1 percent advance. These contracts usually become sales after a month or two, and March's rise suggested home resales could rebound in the months ahead. Sales stumbled last summer after that the U.S. Federal Reserve signaled it would soon reduce its economic stimulus efforts, pushing interest rates higher. A harsh winter also helped keep potential buyers out of the market. "The stronger pending home sales report hints at resurgence in housing market momentum during the typically busier spring buying season," said Gennadiy Goldberg, a strategist at TD Securities. Goldberg said the data suggested housing would continue to support U.S. economic growth in the coming months. The U.S. economy hit a slow patch over the winter, which was particularly harsh in much of the country, but growth is expected to rebound during the rest of 2014. The U.S. Labor Department is expected to report on Friday the economy created 210,000 jobs in April. Prices for U.S. stocks opened higher Monday, while the yield on 30-year U.S. government bonds rose following the release of the housing data. Existing home sales had fallen to their lowest levels in more than 1½ years, but details of Monday's report suggested the downward trend in sales had probably run its course, with housing inventory rising and more first-time buyers coming into the market. Despite last month's surge, pending home sales were still down 7.9 percent compared to March of last year. Contracts increased in the Northeast, in the South and in the West. They fell in the Midwest.

Disney Stock Is About to Get Another Boost From "The Avengers"

Joss Whedon is back to creating great television. Only this time, it's Walt Disney (NYSE: DIS  ) stock that stands to benefit.

Hardcore fans remember Whedon for orchestrating seven seasons of the hit show Buffy the Vampire Slayer and another five seasons of the spinoff Angel, both produced by TV arm of 21st Century Fox (NASDAQ: FOX  ) . Fox also co-produced Firefly and Dollhouse, fan favorites that the network ultimately canceled.

Whedon and Fox had been practically joined at the hip until last summer, when Disney signed Whedon to a multi-property development deal in the wake of Marvel's The Avengers earning more than $1.5 billion at the worldwide box office. The first of his new creations arrives in September, with Marvel's Agents of S.H.I.E.L.D., a Tuesday night TV drama that begins airing in September.

The show is set in (and thereby, extends) the Marvel Cinematic Universe established in the five films leading up to The Avengers. Only in this show, it's not Iron Man, Thor, and Captain America that propose to boost Disney stock. This time, a team of perfectly human field operatives leads the way.

Sources: YouTube, Marvel Entertainment.

I'm already convinced that Disney has a ratings winner on its hands. How can I be so sure? I've seen the first episode. Whedon treated the thousands of us who showed up for a panel discussion at San Diego Comic-Con to an advance screening of Agents of S.H.I.E.L.D.

For now, all I can say is that the show offers treats for fans of Marvel's comics and movies while offering enough mainstream action to appeal to the same demographic that watched Buffy in its heyday, or which tunes in to USA Network's action thriller Covert Affairs.

Importantly, Marvel appears to have given Whedon and the writers of Agents of S.H.I.E.L.D. the space to create something much bigger than a weekly TV show. When asked by a fan which comic book characters would appear in the show, Whedon coyly replied that he and his team may introduce "new people that are part of the Marvel Universe that is not yet cinematic."

in other words, fans and Disney stock investors alike can expect Agents of S.H.I.E.L.D. to be a doorway to heretofore unseen allies and enemies, with actor Clark Gregg leading the way as team leader Agent Phil Coulson. He embraced Whedon at the panel when asked what it was like "put the suit back on" after dying on screen in The Avengers.

Clark Gregg returns as Agent Phil Coulson in Marvel's Agents of S.H.I.E.L.D. Source: ABC.

If Gregg loves the role as much as he purports to, it shows on screen in the first episode. Whedon, too, sees the show as a way to play with the entirety of Marvel's vast assets. "This is a show that has so much history and so much to make ... I guess I'm a little excited," Whedon said at Comic-Con.

After paying $4 billion for Marvel in 2009, you can bet Disney CEO Bob Iger is thrilled with the prospects. Everyday investors should feel similarly: Thousands of Marvel characters have yet to show up in the MCU. Whedon, with a history of producing fan favorites, is about to change that.

I may see Agents of S.H.I.E.L.D. as a catalyst for Disney stock, but the TV landscape is changing so quickly that there are likely to be multiple winners and losers. We give you a closer at the entire landscape in The Motley Fool's new free report "Who Will Own the Future of Television?" Let us help you make the most this multi-billion dollar opportunity. Click here to read the full report now!

Buffalo Wild Wings Leading on Tech Innovation

Buffalo Wild Wings Inc. (BWLD) owns, operates and franchises a chain of more than 900 casual dining restaurants across the United States and Canada. Buffalo Wild Wings has a strong brand prospect and is considered one of the most popular casual dining restaurant chains – with a dine and watch concept and 40 television sets per outlet. The company offers its chicken wings, hamburgers, sandwiches, salads and beers until 2am. Not only sports fan love Buffalo but also families which enjoy taking their children to restaurants where their children can watch TV and play videogames.

Its franchising system allows the company to safeward earnings. With more than 50% of its business franchised, the company reduces capital requirements and facilitates EPS growth and ROE expansion. Moreover, it also allows increasing free cash flow, which permits Buffalo to reinvest in brand recognition, and shareholder return.

Despite the unstable economic scenario, the company has managed to keep posting positive results, being well position within the market as to sustain its same-stores sales growth. Fourth quarter 2013 earnings of $1.10 were above estimations, increasing 23.6% versus 2012, driven by an increase in the top line and lower costs of sales. The new menu launches and marketing strategies are likely to continue boosting the company's sales, and the recent association with NCAA will further increases visibility.

Innovations

Buffalo Wild Wings has been investing in new product development. New menu items such as rib slammers, flat breads and Sam Adams Rebel IPA, the company's new beer, Buffalo, has been able to enhance its menu and attract more customers. It has also successfully changed its traditional way of menu serving chicken wings, with new weight based portions. These efforts have resulted on improved margins and more stable earnings.

Another initiative introduced in the guest experience business model is the installment of tablets in all of its restaurants to provide exclusive social gaming opportunities. Teaming up with NTN Buzztime Inc. (NTN) Buffalo uses Beond tablets to allow guests order food and drinks, play games, and pay their bill. Also, the three-year collaboration with National Collegiate Athletic Association (NCAA) has enabled the company to be an authorized hangout for the NCAA March Madness sports series, increasing visibility as a brand and attracting more customers to their outlets. These efforts, along with more intense advertising initiatives, new point-of-sales programs, improved supply chain and remodeling of its restaurants are expected to boost sales, and strengthen the business in the long run. Buffalo Wild Wings has selected the NCR Corp. (NCR) Aloha Online Ordering solution for its locations to help drive its takeout ordering business. The NCR technology will enable Buffalo to handle both on and off-premise transactions within one system.

Expansion

The company has also been focusing on store opening. Despite the macroeconomic uncertainty, Buffalo has kept with this initiative, and has witnessed unit growth of nearly 11.6% in 2011, 9.1% in 2012 and 10.9% in 2013. Moreover, associations are on track, and the company has acquired a minority stake in PizzaRev, launching in 2012 PizzaRev fast-casual pizza restaurant, with a Craft Your Own initiative. The company plans to open two more PizzaRev units in Minneapolis in 2014 and a few more outlets by the end of 2014. Another partnership on track is with Pepsico Inc. (PEP) and Dr. Pepper Snapple Group, Inc. (DPS) to serve drinks across all its locations. Through these partnerships, Buffalo Wild Wings is developing new sauces and salad dressings for the restaurant chain, like the Mountain Dew-flavored salad dressing and Doritos-flavored wing sauce. These partnerships are expected to increase visibility and improve guest traffic as well.

Economic setbacks

Macroeconomic uncertainties are always threatening restaurant industry companies, as the budget cuts, the high tax rates and tightened credit availability hurt consumer discretionary spending. In addition, the strong competition amid this industry intensifies margin pressures. Still, Buffalo Wild Wings margins are improving given their new initiatives. But the increased expenses and investments to fuel long-term growth might hurt profits in the near term.

The company's revenue missed analysts' estimates last quarter, but its traffic remained very strong. Top line increased year over year, and total revenue increased 12.4%, despite missing estimations of $345.0. Still, the growth of Buffalo Wild Wings has been outstanding: from 553 locations to more than 1,000 restaurants today, for a 12% compounded annual growth rate in locations.

Bottom line

The company has recently been developing numerous initiatives to attract more customers and enhance its brand furthermore. Improving its facilities, introducing technology and with different marketing campaigns, Buffalo is likely to keep in a highly competitive position and boost its sales. Buffalo Wild Wings' comparable-store sales increased 5% and its profit grew an astonishing 25%.

Disclosure: Damian Illia holds no position in any of the stocks mentioned

About the author:Damian IlliaA fundamental analyst at Lonetreeanalytics.com constantly looking for value and income investments.

Visit Damian Illia's Website

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There’s Plenty to Like In Value Stocks Like Genworth (GNW)

Recent Posts: There's Plenty to Like In Value Stocks Like Genworth (GNW) Apple's Next Big Thing? Forget About It View All Posts

If the recent volatility in the market has you feeling uneasy, you're not alone. That feeling in your gut means something. Listen to it.

After hitting a fresh high of nearly 1900 on April 4, the S&P 500 (INX) closed last Friday at 1816 – a 4.3% drop in just one week. We've seen a bit of a rebound, but the worst week in two years rattled investors. Nasdaq (IXIC) got close to a 10% drop from its March high, which would make it an official "correction" – a nice word that masks the pain many investors are feeling.

There isn't one specific headline to drive the selling, so we've heard a lot about the "momentum meltdown," as the likes of Tesla (TSLA), Twitter (TWTR), Facebook (FB) and other high fliers have caught more than a few investors off guard with how much they sold off.

And that's the problem. Momentum is fine… until it stops working. It's human nature to want to own stocks that keep going up, but that's also when they become the most vulnerable.

When the momentum ends – as it inevitably will – it can be devastating. Remember, climbing back out of a hole is a lot tougher than falling down in. You need a 33% bounce to recover from a 25% loss, and a double to recover from a 50% loss.

"Fear Is Your Friend"

The reality is that we cannot avoid volatility if we invest in the stock market, which we absolutely need to do to truly build wealth. The key is to invest in companies that still allow you to sleep at night and take advantage of the fear so many other investors are felling to buy stocks selling at a significant discount to their real value.

As contemporary value stock  investors, my readers and I buy stocks already selling at a discount, not the overvalued high-fliers that have been hit hard, so we already have less downside risk. On the flipside, selling creates wonderful buying opportunities as panic takes take over and many investors practically give away their stocks.

Warren Buffett put it well in his most recent letter to shareholders:

"Owners of stocks…too often let the capricious and often irrational behavior of their fellow owners cause them to behave irrationally as well." He goes on to say that "tumbling markets can be helpful to the true investor if he has cash available when prices get far out of line with values. A climate of fear is your friend when investing; a euphoric world is your enemy."

Almost a Triple and Still a Good Buy

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Value stock investors are in a unique position to make a climate of fear our friend. We focus on companies already trading below intrinsic value, and that discount provides a built-in margin of safety with less downside risk. At the same time, we look for catalysts to drive future value and close most or all of the current discount. The result is an "asymmetric" investment in which we risk $1 to make $2, $3, or $4.

An excellent example is Genworth Financial (GNW), a stock I have owned since it was trading around $6 share, so it is approaching a triple for me. That said, I recently recommended it to my Contemporary Value Investor readers because it is still an excellent buy. GNW remains undervalued, and the recent selling has brought it back under my recommended buy limit.

There was plenty of fear around when I first bought Genworth. It was suffering from financial distress having written insurance on residential mortgages prior to the financial crisis of 2008.

Management had done some smart things, such as isolate the mortgage insurance unit from the rest of the business in the capital structure. This way, if the mortgage business ever blows up again, the losses will be isolated and less likely to take the entire business down.

In addition, management has levers to pull for further value creation, especially the IPO of its Australian mortgage unit, and I expect the large discount to book value to eventually be eliminated. The recent pullback is a buying opportunity. I'm targeting nearly 25% gains from current prices with not a lot of downside risk.

I bought the stock because of its large discount to book value and the fact that new management was making clear progress turning the business around. Those remain the reasons to buy it. GNW trades at a sizable 55% discount to its fourth-quarter 2013 book value, and is trading around 11.6X expected 2014 earnings and 9.8X 2015 expectations.

As we said, we can't avoid volatility, but as value stock investors, it's nice to know that we're positioned to not just withstand it but use it to our advantage.

Intel's Massive Profits Just Aren't Enough

The following video is from Thursday's Investor Beat,  in which host Chris Hill, and analysts Bill Barker and Charly Travers, dissect the hardest-hitting investing stories of the day.

Despite Intel posting a second-quarter profit of $2 billion, the stock took a hit today after the company lowered its full-year guidance. In our lead story today, Bill and Charly discuss how Intel missed its chance at the first-mover advantage in mobile, and whether the stock looks like a buy today.

Also, our analysts look at four stocks that made big moves on Thursday's market. Higher than expected second-quarter profits drove shares of UnitedHealth to a new all-time high. Also, eBay's earnings were in line with expectations, but the outlook for the rest of the year was disappointing, and shares took a hit. Overstock.com's second-quarter profits came in seven times higher than what they were in this quarter last year. And Nokia's 2nd-quarter sales fell 24%, but analysts were expecting even worse.

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Finally, Bill and Charly each pick one stock for investors that they'll be watching closely in the week ahead.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Don't Get Too Worked Up Over Tidewater's Earnings

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

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

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Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Tidewater burned $226.6 million cash while it booked net income of $150.8 million. That means it burned through all its revenue and more. That doesn't sound so great. FCF is less than net income. Ideally, we'd like to see the opposite.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Tidewater look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With questionable cash flows amounting to only 0.4% of operating cash flow, Tidewater's cash flows look clean. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 8.9% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures. Tidewater investors may also want to keep an eye on accounts receivable, because the TTM change is 3.6 times greater than the average swing over the past 5 fiscal years.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Is Tidewater the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add Tidewater to My Watchlist.

Foolish Reviews: The Best of the Android Phones

The high end of the cell phone market is a lucrative, but highly competitive space. Consumers have fairly straightforward choices when it comes to iPhones or Windows devices, but there are more confusing choices among the Android phones.

In this multipart review series, Motley Fool analysts Eric Bleeker and Rex Moore look at three of the Android giants -- the HTC One, Nexus 4, and Samsung Galaxy S4 -- and how they stack up against each other as well as the non-Android competition. In today's video, Eric and Rex introduce the phones and talk about the competitive landscape among the various players.

Dialing a different tune
Want to get in on the smartphone phenomenon? Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits NO MATTER WHO ultimately wins the smartphone war. To find out what it is, click here to access the "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further..."

Why Accenture Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global consulting giant Accenture (NYSE: ACN  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Accenture and see what CAPS investors are saying about the stock right now.

Accenture facts

Headquarters (founded)	Dublin, Ireland (1995)
Market Cap	$46.8 billion
Industry	IT consulting and other services
Trailing-12-Month Revenue	$28.2 billion
Management	CEO Pierre Nanterme (since 2011) CFO Pamela Craig (since 2006)
Return on Equity (average, past 3 years)	64.8%
Cash/Debt	$5.9 billion / $0
Dividend Yield	2.3%
Competitors	IBM Computer Sciences Infosys

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 1,350 members who have rated Accenture believe the stock will outperform the S&P 500 going forward.   

Just last week, fellow Fool Simon Erickson (TMFInnovator) tapped the company's recent earnings miss as an attractive buy-in opportunity:

Accenture missed Rev guidance, largely due to weakness in Brazil and Europe and fewer big projects, which caused shares to drop 11%. I'm not sure why this miss was so shocking, really. The current market uncertainty is influencing companies' IT/consulting spend, which effected ACN's short-term results.

Looking bigger picture though, ACN is in a great position to outperform:
-Their focus on data analytics and cloud computing are fast-growing markets to be competing in.
-Their reputation is phenomenal. They focus is on long-term relationship building, which allows for recurring revenues and a sticky customer base. ...
-They are one of the few consulting firms to also offer to deploy IT and hardware solutions. ...
-They have an asset-light model that allows them to return profits to shareholders. They have tripled their annual dividend in the last five years.

Accenture has outperformed the market in 8 of the last 10 years. I would expect them to do more of the same in the future.

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Peeking inside Samsung's product torture chamber

SUWON, South Korea — And you thought your kids were hard on your smartphone.

It's nothing near the abuse Samsung Electronics inflicts on its Galaxy S5 and other products in the company's pipeline. Phones are dropped on purpose, subjected to heat, dust and water, and zapped with high-voltage electrostatic guns.

I'm visiting testing facilities at Samsung's headquarters, where the company is putting its latest flagship phone through the wringer. The idea is not simply to see how the phones might come through the rigors of human contact unscathed — though that's a big part — but also to figure out how external elements affect longevity and performance.

Some tests are automated, while others involve more personal interaction. For example, devices are placed into a chamber filled with dust to test for faulty circuits. They're dropped in water or shot with a nozzle of water to see if they corrode or go on the fritz. Phones are tested to see how they handle sweat. They're twisted to determine how far they can bend without breaking.

Samsung drops the devices off a platform from various heights and angles, and analyzes them for cracks, loose parts or other damage. It's a good way to tell if they can survive a clumsy owner.

Can they survive the kid who loves to press — and keep pressing — buttons? To test this, Samsung runs an automated machine with knobs that repeatedly press the home button — Samsung won't reveal how just many times — until that button finally fails.

Meanwhile, if you've ever broken a device by inadvertently sitting on it, you'll appreciate the automated butt test Samsung conducts. Yep, the dummy derriere that sits on exposed test phones wears jeans.

Samsung punishes competitor's phones, too, and puts other types of products through automated torture drills. Laptop lids, for example, are repeatedly folded and unfolded to test their durability, an exercise that conjures up images of a chorus line. Similar folder life-cycle tests are done wit! h flip-phone covers.

While many of the tests are about how the phones (and other products) will come through in one piece, there are others to gauge their impact on you and me. For example, Samsung employs thermal cameras to determine if devices are emitting too much heat. It also uses fluids that mimic the characteristics of the human body, which can help tell if the body will absorb too much radiation.

Cameras in phones are evaluated against a variety of measures — color, resolution, flash performance, etc. — with the tests adjusted for changing lighting environments.

Samsung uses spikes of absorbent foam in various antenna chambers to test reception and to determine how other electronic gadgetry may be affected.

Device acoustics are also tested, of course, with loud background noises (cars and trains, for example) simulating environments around the world. It seems noise levels in India or China, for example, differ from levels in Europe or the U.S.

Mid-Afternoon Market Update: SanDisk Rallies as Western Union Drops on News of a New Money Transfer Service Through Wal-Mart

Related BZSUM Market Wrap For April 17: Mixed Earnings Drag The Dow Lower While S&P 500 & Nasdaq End Positive Mid-Day Market Update: Google Drops After Downbeat Earnings; SanDisk Shares Spike Higher

Toward the end of trading Thursday, the Dow traded up 0.06 percent to 16,434.15 while the NASDAQ surged 0.46 percent to 4,105.08. The S&P also rose, gaining 0.30 percent to 1,867.41.

Leading and Lagging Sectors
Thursday morning, the telecommunications services sector proved to be a source of strength for the market. Leading the sector was strength from ARC Group Worldwide (NASDAQ: ARCW) and Internet Initiative Japan (NASDAQ: IIJI). In trading on Thursday, non-cyclical consumer goods & services shares were relative laggards, down on the day by about 0.43 percent.

Top losers in the sector included B&G Foods (NYSE: BGS), off 5.6 percent, and Diageo plc (NYSE: DEO), down 3.5 percent.

Top Headline
The Goldman Sachs Group (NYSE: GS) reported better-than-expected first-quarter earnings. Goldman Sachs posted its quarterly earnings of $2.03 billion, or $4.02 per share, down from $2.26 billion, or $4.29 per share, in the year-ago period. Its total revenue declined 8% to $9.33 billion from $10.09 billion. However, analysts were estimating earnings of $3.48 per share on revenue of $8.66 billion.

Goldman Sachs' investment banking revenue rose 13% to $1.78 billion from $1.57 billion, while fixed income revenue slipped 11% to $2.85 billion versus $3.22 billion.

Equities Trading UP
Plexus (NASDAQ: PLXS) shares shot up 6.98 percent to $42.09 after the company reported its Q2 earnings of $0.60 per share on revenue of $557.60 million. The company also issued a strong Q3 outlook.

Shares of SINA (NASDAQ: SINA) were also up, gaining 6.89 percent to $56.66 Weibo successfully IPO'ed Thursday morning.

SanDisk (NASDAQ: SNDK) shares were also up, gaining 10.24 percent to $83.62 after the company reported upbeat Q1 results. Morgan Stanley raised the price target on the stock from $82.00 to $90.00.

Equities Trading DOWN
Shares of Moneygram International (NASDAQ: MGI) were down 17.01 percent to $14.92 following announcement of new money-transfer service from Wal-Mart.

International Business Machines (NYSE: IBM) shares tumbled 3.28 percent to $189.96 after the company reported downbeat first-quarter revenue. IBM posted its adjusted earnings of $2.54 per share on revenue of $22.48 billion. However, analysts were projecting earnings of $2.54 per share on revenue of $22.93 billion.

Hot Warren Buffett Companies To Buy Right Now

Western Union (NYSE: WU) was also down, falling 4.61 percent to $15.31 after Wal-Mart announced a new money transfer service Thursday morning.

Commodities
In commodity news, oil traded up 0.51 percent to $104.29, while gold traded down 0.62 percent to $1,295.30.

Silver traded down 0.23 percent Thursday to $19.63, while copper rose 0.86 percent to $3.05.

Eurozone
European shares were higher today.

The Spanish Ibex Index rose 0.24 percent, while Italy's FTSE MIB Index jumped 0.37 percent.

Meanwhile, the German DAX climbed 0.99 percent and the French CAC 40 jumped 0.59 percent while U.K. shares gained 0.62 percent.

Economics
US initial jobless claims rose by 2,000 to 304,000 in the week ended April 12. However, economists were projecting claims to total 315,000 in the week.

US Bloomberg Consumer Comfort Index rose to -29.10 in the week ended April 13, versus a prior reading of -31.90.

US Philadelphia Fed manufacturing index rose to 16.60 in April, versus a prior reading of 9.00. However, economists were expecting a reading of 9.80.

Supplies of natural gas climbed 24 billion cubic feet for the week ended April 11, the US Energy Information Administration said. However, analysts were expecting a gain of 34 billion cubic feet to 38 billion cubic feet.

Data on money supply will be released at 4:30 p.m. ET.

Posted-In: Earnings News Guidance Eurozone Futures Forex Global Econ #s Economics Markets

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

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Hedge Funds Are Buying These 5 Energy Stocks -- Should You?

BALTIMORE (Stockpickr) -- While most investors have been transfixed on the market shift away from 2013's momentum winners, energy stocks have quietly been building strength in 2014.

>>5 Stocks Insiders Love Right Now

Year-to-date, energy sector stocks have climbed an average of 3%. Compare that with flat performance from the S&P 500 and losses close to 4% in the momentum-heavy Russell 2000 Index. More important, on a relative strength basis, energy stocks are strengthening as we get deeper into April.

And fund managers have been piling into that strength in the last quarter. In fact, the energy sector was one of only three equity groups that actually attracted new money in the first quarter. So today, we're taking a closer look at the energy names that pro investors love this year.

To figure that out, we've got to take a closer look at 13F filings.

Institutional investors with more than $100 million in assets are required to file a 13F -- a form that breaks down their stock positions for public consumption. From hedge funds to mutual funds to insurance companies, any professional investors who manage more than that $100 million watermark are required to file a 13F.

>>5 Big Trades to Survive a Roller Coaster Market

In total, approximately 3,700 firms file 13F forms each quarter, and by comparing one quarter's filing with another, we can see how any single fund manager is moving his or her portfolio around. While the data is generally delayed by about a quarter, that's not necessarily a bad thing. Research shows that applying a lag to institutional holdings can generate positive alpha in some cases. That's all the more reason to crack open the moves being made with pro investors' $19.3 trillion under management. It's early in 13F filing season still, and that means we're getting an early sneak peek at the few names institutional investors love right now.

Today, we'll focus on hedge funds' five favorite energy stocks.

Canadian Natural Resources

Canadian Natural Resources (CNQ) has been a perfect example of energy stock outperformance in 2014: Since the calendar flipped over to January, shares of CNQ have rallied more than 17.9%. That makes it a particularly prescient move for pro investors to pile into last quarter. All told, hedge funds picked up 3.23 million shares of CNQ, boosting their total stake in the $43 billion energy stock to $943 million.

As an independent exploration and production firm, Canadian Natural Resources holds proved and probable reserves of 7.6 billion barrels of oil equivalent, much of which is focused on oil sands assets. Those oil assets produce significant free cash flows, particularly given the fact that crude oil prices have been lingering near the top of their historic range. That makes more oil projects viable for E&Ps like CNQ. Likewise, with 87% of assets in oil, the firm has been fully exposed to oil's moves without exposure to volatile natural gas. That could become a drag if nat gas continues to run higher, but for now the strength of crude prices makes missing out on a gas move less painful.

Financially, CNQ is in solid shape, with a manageable $9.6 billion debt load and net profit margins that consistently hit double digits. Historically, this stock has kept relatively low cash levels on its balance sheet, opting instead to pay out a 2% dividend yield and re-invest the rest. But CNQ's cash generation gives it options if it suddenly needs more liquidity.

As a pure-play E&P stock, it's hard to argue with the exposure you get from Canadian Natural Resources right now.

Halliburton

Oil field servicer Halliburton (HAL) is another name that funds piled into in the first quarter. The pros bought 701,920 shares of Halliburton, boosting their total stake in the firm by a very material 5%. That brings hedge funds' holdings in Halliburton to $754 million at last count.

Halliburton integrated oil servicer -- the firm does oil and gas companies' dirty work, specializing in drilling, pumping, and project management. Over the last decade, Halliburton has worked hard to get more contracts on each individual oilfield it services. That's provided a margin boost, particularly as relatively high crude prices have made oil companies somewhat less price sensitive in the last several years – but that ship has started turning, and oil firms are squeezing Halliburton to boost their own margins. Margin erosion is the one factor investors should watch the closest in 2014.

There are some big international growth opportunities on the deck for Halliburton right now. International oil development continues to be a growth space in the energy sector, and HAL's Halliburton's ability to snag deals with foreign, government-backed oil firms is going to be paramount to the firm's ability to keep growth rates high. Here at home, aging legacy wells spell bigger profits for oil servicers such as Halliburton and its peers, as firms must pay more to extract oil using more specialized methods. HAL's stair-step growth should continue this year.

Schlumberger

Speaking of Halliburton's peers, Schlumberger (SLB) was another major hedge fund target from the energy sector in the first quarter -- only more so. While institutions bought more HAL on a dollar basis, they boosted their stake in SLB by more than 10%, making it a much higher conviction bet. So should you pick SLB over HAL in 2014?

Schlumberger certainly has some advantages over HAL, one of which is scale. As the biggest oil-service company in the world, SLB has operations in 85 countries and generated more than $46 billion in revenues last year. SLB focuses on helping large oil companies drill more effectively and pull more energy out of the ground; so, like HAL, the firm benefits as oil becomes pricier to produce. The firm is also in an enviable position in Russia. Despite drama in the region, Russian energy production remains massive, and SLB's expertise in the region gives it an economic moat.

Research and development are an important part of SLB's business. The firm spends more than $1 billion each year on new technology that it can deploy in the field. And that technological edge means that you're more likely to see Schlumberger's logo on an oilfield. Likewise, its size means that it can spread those huge research costs across a much larger number of work sites.

If you have to pick one oil servicer, SLB is my go-to choice, but hedge funds are clearly betting on both names in 2014.

EOG Resources

$55 billion exploration and production firm EOG Resources (EOG) is another energy name that's been rallying nonstop in 2014. Shares of EOG are up more than 20% since January (and as it happens, they're also on our Rocket Stocks list this week). That makes EOG a stellar name from a relative strength standpoint at a time when relative strength names are few and far between.

EOG sports one of the most U.S.-centric energy portfolios out there. The firm's proven reserves are large, at 2.2 billion barrels of oil equivalent, but what's unique about EOG is the fact that 94% of those assets are located domestically. That greatly reduces the risk of EOG's operations at a time when geopolitical risk is creeping into commodity investors' portfolios. Because EOG is a pure-play exploration and production firm, it never carried the downstream assets that have been such a drag for many integrated energy stocks over the last few years. That's a big part of this firm's performance this year.

Nat gas exposure is present in EOG in a big way -- approximately 45% of this company's energy production comes from gas, not oil. While natural gas has shown an ugly chart for the last few years, it's been a very different story in 2014, with prices finally rising abruptly thanks in large part to overseas crises that don't look likely to resolve themselves anytime soon. That could materially boost the amount of money EOG can fetch at market for its natgas production.

Funds piled into EOG with a 561,350 share purchase in the first quarter. That may not sound like a large buy operation, but it's actually a 25% boost in position size. Pro investors love this stock right now.

Superior Energy Services

Last up on hedge funds' buy list is Superior Energy Services (SPN), a $5 billion oilfield servicer that's very different from the other energy names that got bought up to start the year. Despite a mid-cap size and a major earnings miss last quarter, hedge funds more than doubled their stakes in SPN, buying up 2.18 million shares.

Like the other oil service names on our list, SPN's business is built around helping oil companies drill, build-out wells, and bet more efficient production. In particular, Superior has significant exposure to subsea construction, which was a big part of February's earnings miss; the firm exited Venezuela last quarter, taking a hit on subsea work it had completed. Those one-time charges torpedoed the firm's income statement for 2013, but the market took the news in stride.

Financially, Superior's small scale makes it attractive. The firm only carries $1.6 billion in debt on its balance sheet, with more than $196 million in cash holdings to help offset it. That's a very tenable debt load for a firm with SPN's scale. Obviously, this is by far the more speculative name in the oilfield services business, but that comes with the potential for much more significant growth -- revenue has more than doubled in the last three years alone.

Hedge funds love this stock, and yes, SPN makes a nice complement to owning a bigger oilfield servicer. But investors should be more cautious than usual as volatility starts creeping back into U.S. stocks this Spring.

To see these stocks in action, check out the Institutional Buys portfolio on Stockpickr.


-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

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>>4 Hot Stocks to Trade (or Not)

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

Upside for Silver Standard Resources Inc Might Be Limited

If a miner has only one producing mine, this mine must deliver stable performance. This was the case for Silver Standard Resources (NASDAQ: SSRI  ) , which had only one producing mine, Pirquitas in Argentina, in the first quarter. However, the company has completed its acquisition of Marigold mine from Goldcorp (NYSE: GG  ) and Barrick Gold (NYSE: ABX  ) at the beginning of April, so it started the second quarter with two producing mines.

Silver Standard Resource has recently reported its first quarter production results, which showed that production at Pirquitas was 1.9 million ounces of silver, down from 2 million ounces of silver in the first quarter of 2013. Will these numbers be enough to sustain the valuation of a company whose shares are up 49% this year?

Marigold performance will be crucial
Silver Standard Resources stated that first quarter production at Pirquitas is typically affected by the rainy season and that the mine remains on track to produce 8.2 million-8.6 million ounces of silver this year. Pirquitas was a solid performer in 2013, delivering strong production and generating positive cash flows despite low silver prices. Although cost performance at the mine is somewhat uncertain due to big inflation and economic headwinds in Argentina, it looks like Pirquitas will continue to be in good shape in 2014.

However, the main driver of Silver Standard Resources' shares this year was the company's diversification into gold with the acquisition of Marigold mine, as gold outperformed silver in 2013 and continues to outperform in 2014.

According to Goldcorp's annual report, all-in sustaining costs at Marigold were $1,503 per ounce of gold last year. In the fourth quarter, the mine delivered a much better performance with all-in sustaining costs of $1,216 per ounce. Although this level of costs will bring positive cash flows at current gold prices, the costs are still high. Silver Standard Resources will have to push costs at the mine to lower levels in order to justify spending $275 million on the acquisition.

Upside is limited before first Marigold results
Most likely, the market had already priced in the solid performance at Pirquitas. The mine's track record shows that there will possibly be no major surprises on the upside or downside this year. Therefore, Marigold's performance will give more clues for Silver Standard Resources' future valuation.

Until then, the upside for the company's shares might be limited unless silver prices start to rally. This looks unlikely at this point, as silver prices are stuck around the $20 mark and there are no major catalysts to drive prices higher. What's more, Silver Standard Resources' shares are trading at roughly the company's book value. I see little reason for shares to trade at a premium to book value until the market could see the cost and production performance at Marigold in the second quarter.

Top 5 Oil Stocks To Buy Right Now

Bottom line
The Marigold sale benefited both the sellers and the buyer. Goldcorp and Barrick Gold continued to focus on their key assets while selling non-core operations. Silver Standard Resources found a productive use for a significant amount of cash on the balance sheet that generated no revenue. It looks like Silver Standard Resources shareholders will have to be patient and wait for first clues about how things are going at Marigold. Until then, Silver Standard Resources' upside might be limited.

Boost your 2014 returns with The Motley Fool's top stock
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Indie Channels to Hold 38% of Assets by 2016: Cerulli

While the wirehouses experienced outflows of $74 billion due to advisor movement in 2012 — mainly in favor of the dually registered channel, which is anticipated to add 3.3% market share by 2016 — the wirehouses are still expected to retain their lead in assets, according to Cerulli Associates.

But that advisor migration is expected to grow independent channels to 38% of asset market share through 2016, according to Cerulli’s report, Intermediary Distribution 2013: Managing Sales Amid Industry Consolidation.

“We anticipate the registered investment advisor and the dually registered channels are going to be the beneficiaries of advisor movement,” said Kenton Shirk, associate director at Cerulli.

Indeed, Cerulli has predicted that independent and dually registered RIAs will account for 26% of all retail advisory assets by the end of 2016.

“Across the advisor industry, there is a strong desire for independent operation and ownership,” Shirk says. “The draw of autonomy, combined with the trend toward fee-only relationships, has enhanced the appeal of the independent channels.”

The report notes that “while many advisors desire a pure fee-only business, more often reality dictates a mix of fee and commission relationships. A legacy of commission business creates a familiarity with certain products, provides revenue in the form of trails, and breeds dependency on BD support.”

The report also notes advisors’ use of exchange-traded funds has boosted their asset growth. ETFs’ year-over-year asset growth outpacing their 5-year average, increasing an impressive 57.5% due to market appreciation and expanding advisor adoption.

While advisors’ use of alternatives has also grown in recent years, Cerulli notes that “many advisors are still reluctant to implement them in their portfolios.”

Alternatives, Cerulli says, “are often associated with high risk, and many advisors fear that they will lose clients if alternative investments in their portfolios perform poorly.” The Boston-based firm goes on to say that “many advisors lack thorough understanding of how alternatives fit within a portfolio and how they will perform in different market environments.” However, “when used appropriately, alternatives can provide protection to downside risk, although they typically do not yield high returns in bull markets.”

The report also notes that while variable annuity sales have persisted at IBDs and banks “where a culture of transactional business is the norm,” many broker-dealers are looking to grow their fee-based business, “which has hampered but not eliminated the use of annuities.”

Theme Park Stocks Entertain and Temp Investors With News (FUN, SIX, SEAS & IFLM)

Theme park stocks Cedar Fair, L.P. (NYSE: FUN), Six Flags Entertainment Corp (NYSE: SIX), SeaWorld Entertainment Inc (NYSE: SEAS) and up and coming Independent Film Development Corporation (OTCMKTS: IFLM) have all been producing their share of news lately ranging from hot to neutral to cold for investors and traders alike – meaning it might be time to take a look at what the sector might have to offer:

Cedar Fair, L.P. Hits an All Time High After Earnings. On Thursday, shares of Cedar Fair, L.P. hit an all time high after the company reported earnings. Specifically, Cedar Fair, L.P. reported that revenue rose 7% to $592.1 million as revenue from admissions to the parks rose 6.3% to $339.7 million and revenue from food and merchandise bought at the parks rose 5.3% to $180.4 million and out-of-park revenues rose 8% to $58.7 million while average in-park guest per capita spending rose 7% to $45.73. In addition, Cedar Fair, L.P.'s net income rose 35% to $190.4 million plus the company raised its outlook for the full year above Wall Street expectations. Finally, Cedar Fair, L.P. announced a 12% cash distribution increase with the forward yield being 5.5% – meaning the stock has been producing more than just fun for investors.  

Is Six Flags Entertainment Corp Set to Bounce Back From an Accident + Earnings Miss? Late in October, Six Flags Entertainment Corp reported weaker than expected results due mainly to the fallout from a July roller-coaster death at a theme park in Texas. However, Wells Fargo noted that the fallout from the accident was limited to that particular park and they believe that previous growth drivers remain intact plus the company could look to relever in Q4 and use the proceeds to buy back shares. Moreover and last Thursday, Six Flags Entertainment Corp announced a 4.4% increase in its quarterly cash dividend from 45 cents to 47 cents per share for a forward dividend yield of around 4.90%. Nevertheless, Six Flags Entertainment Corp's technical chart is still trending down:

SeaWorld Entertainment Battles Bad Publicity Ahead of Earnings. SeaWorld Entertainment is scheduled to release its third quarter 2013 financial results after the market closes on Wednesday, November 13, but the company has had a negative spotlight cast upon it by an independent and activist orientated film. Specifically, the film Blackfish explores the accidental deaths of SeaWorld trainers and exposes the "dark side" of holding killer whales captive. The filmed premiered at the Sundance Film Festival back in January, but has since gone more mainstream with an airing on CNN back on October 24th plus its been the subject of several CNN news features – sparking debate about keeping whales in captivity. Blackfish isn't the only problem for SeaWorld Entertainment or for investors as I noted last summer, the stock has been particularly good for one key investor plus its also highly leveraged with the latest technical chart seeming to indicate that reality has set in for investors:

 

Independent Film Development Corporation Outlines Its Unique Theme Park Plans. Los Angeles based Independent Film Development Corporation, which intends to develop genre themed studio style resorts, has recently announced an exclusive broker agreement with Beverly Hills based Camden Realty Group (CRG) for assistance in finding and acquiring suitable properties for development nationwide with the company's first project being the "Hilltop Manor Theme Resort and Production Studios."

Independent Film Development Corporation's genre theme park and resort is planned for New York's Catskill Mountains and will be dedicated to the horror and science fiction genres of film and television with the company's management team describing it as a "place where people will be able to collectively celebrate things that go bump in the night." Current plans call for a luxurious 320 room 4 or 5 star hotel plus an old fashioned hedge maze; a lake with a "monster" living in it along with an island with castle ruins; and a number of rides having an "overall theme of the mysterious, the unexplained and the supernatural." Shares are also up 200% since last January.

Top Food Stocks To Own Right Now

Microsoft Slams Apple -- Again

After rolling out an attack ad last month -- crashing a wedding of Apple (NASDAQ: AAPL  ) and Samsung fans -- Microsoft (NASDAQ: MSFT  ) is throwing another punch.

The software giant's new television commercial ruthlessly attacks Apple's iPad.

A side-by-side comparison of an iPad with a Windows 8-powered ASUS VivoTab Smart tablet is peppered with a voiceover narrative mimicking Siri, Apple's digital assistant. 

"Sorry, I don't update like that," Siri says, highlighting Apple's lack of automatic app updates -- something that even Senator John McCain called out in questioning Apple CEO Tim Cook earlier this week. 

The ad then goes on to take the iPad to task for its inability to multitask with a split screen while watching a video. Then comes the rub about the iPad being unable to run Microsoft's PowerPoint.

"Should we just play Chopsticks?" Siri concludes with someone clumsily playing a virtual piano on the iPad.

It's always been socially acceptable to roll out attack ads if you're the underdog, and Microsoft certainly qualifies in the tablet space. Apple had no problem kicking Mr. Softy when the world's largest software company was down, rolling out the "I'm a Mac" ads that repeatedly trashed Windows Vista.

The unique thing about Microsoft's strategy is that it isn't gunning for just one particular product. April's ad skewered the iPhone cult, hoping to make a name for its partnership with Nokia  (NYSE: NOK  )  in putting out Lumia smartphones. 

Now Microsoft is taking aim at the iPad. 

The Nokia Lumia ad was more about style than substance. It didn't really sell the Lumia as much as it put down the iSheep and CopyBots carrying around iPhone and Samsung mobile products. There was no breakdown of Lumia-specific features that would woo a potential buyer to Nokia's handset. This time the spot is spelling out specific reasons why a Windows 8 tablet is the better choice. 

The effectiveness of Microsoft's attack ads remain to be seen. Clearly Microsoft sees Apple as vulnerable -- something that investors have realized since the consumer tech giant's stock peaked when the iPhone 5 hit the market. Will the market begin to attach negative feelings to Apple products, or will viewers interpret the ad as more sour grapes on Microsoft's behalf for missing out on the smartphone and tablet revolutions?

Either way, it's good to at least see Microsoft hungry and attacking. Complacency isn't a good look on an underdog. 

Brace for battle
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Top 10 Logistics Companies To Watch For 2015

The Department of Defense's contract-awarding machine kicked into high gear Tuesday, as the Pentagon issued a total of 16 contracts worth a combined $2.7 billion.

Among the larger contracts awarded was a $157.3 million maximum cost-plus-fixed-fee contract hiring Computer Sciences Corporation (NYSE: CSC  ) subsidiary DynPort Vaccine Company LLC to develop a "prophylactic and medical countermeasure to prevent the effects of organophosphorus nerve agents" -- essentially, an antidote to nerve gas.

Boeing (NYSE: BA  ) received two smaller contracts awards:

a $27.5 million modification to a previously awarded firm-fixed-price contract to provide logistics services supporting low rate initial production of its P-8A Poseidon Multi-Mission Maritime aircraft. This contract should be complete by June 2016; and an $18.3 million modification to a previously awarded firm-fixed-price contract funding the procurement of "long lead material" needed to build Apache attack helicopters.

Also, Chicago Bridge & Iron (NYSE: CBI  ) subsidiary Shaw Environmental won a $10 million modification to a previously awarded cost-plus-fixed-fee contract to provide remediation and excavation services at the Maywood Superfund site in New Jersey.

Top 10 Logistics Companies To Watch For 2015: Invacare Corporation (IVC)

Invacare Corporation designs, manufactures, and distributes medical equipment and supplies for non-acute care environment, including the home health care, retail, and extended care markets worldwide. The company offers mobility and seating products, including power wheelchairs, custom manual wheelchairs, personal mobility products, and seating and positioning products; lifestyle products, such as manual wheelchairs, personal care products, homecare beds, pressure relieving mattresses, and patient transport products; and respiratory therapy products comprising non-delivery oxygen, stationary oxygen concentrators, and aerosol products and oxygen accessories. It also provides assistance in the collection of outstanding co-pays, rental capabilities, software, and technology to streamline efficiencies, repair services, and replacement parts. In addition, the company distributes medical supplies, including ostomy, incontinence, diabetic, enteral, wound care, and urology products , as well as home medical equipment, including lifestyle products. Further, it manufactures and markets healthcare furnishings comprising beds, case goods, and patient handling equipment for the long-term care markets; specialty clinical recliners for dialysis and oncology clinics; and other home medical equipment and accessory products. Additionally, the company offers home medical equipment for rent. It serves home health care and medical equipment providers, distributors, and government locations through its sales force, telesales associates, and various organizations of independent manufacturers� representatives and distributors. Invacare Corporation was founded in 1885 and is headquartered in Elyria, Ohio.

Advisors' Opinion:

• [By Roberto Pedone]

  Invacare (IVC) designs, manufactures and distributes a line of health care products for the non-acute care environment, including the home health care, retail and extended care markets. This stock closed up 2.3% at $16.73 in Monday's trading session.

  Monday's Volume: 218,000
  
  Three-Month Average Volume: 143,188
  
  Volume % Change: 75%

  From a technical perspective, IVC jumped higher here right above some near-term support at $16 with above-average volume. This move briefly pushed shares of IVC into breakout territory, since the stock flirted with some past resistance at $16.81. This move is also close to pushing shares of IVC above the upper-end of its recent sideways trading price action, that has seen IVC trade between $14.92 on the downside and $16.81 on the upside.

  Traders should now look for long-biased trades in IVC as long as it's trending above its 50-day at $15.75 and then once it sustains a move or close above Monday's high of $16.84 with volume that's near or above 143,188 shares. If we get that move soon, then IVC will set up to re-test or possibly take out its next major overhead resistance levels at $18.24 to $19.15.

Top 10 Logistics Companies To Watch For 2015: Arabian American Development Co (ARSD)

Arabian American Development Company, incorporated in 1967, is engaged in manufacturing various specialty petrochemical products. As of December 31, 2011, the Company owned a 37% interest in Al Masane Al Kobra Mining Company and a 55% interest in Pioche Ely Valley Mines, Inc (PEVM). The Company�� United States activities are primarily conducted through a wholly owned subsidiary, Texas Oil and Chemical Co. II, Inc. (TOCCO). TOCCO owns of South Hampton Resources Inc. (South Hampton), and South Hampton owns of Gulf State Pipe Line Company, Inc. (Gulf State).

South Hampton owns and operates a specialty petrochemical facility near Silsbee, Texas, which produces petrochemical solvents and other petroleum based products, including isopentane, normal pentane, isohexane and hexane, which is used in the production of polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams, and in the catalyst support industry. Gulf State owns and operates three pipelines that connect the South Hampton facility to a natural gas line, to South Hampton�� truck and rail loading terminal and to a petroleum products pipeline owned by an unaffiliated third party.

South Hampton owns and operates a specialty petrochemical facility near Silsbee, Texas which is approximately 30 miles north of Beaumont, Texas, and 90 miles east of Houston. The facility consists of seven operating units which, while interconnected, make distinct products through differing processes: a Penhex Unit; a Reformer; a Cyclo-pentane Unit; an Aromax Unit; an Aromatics Hydrogenation Unit; a White Oil Fractionation Unit, and a Hydrocarbon Processing Demonstration Unit.

Gulf State owns and operates three 8-inch diameter pipelines aggregating approximately 50 miles in length connecting South Hampton�� facility to: a natural gas line, South Hampton�� truck and rail loading terminal and a petroleum products pipeline system owned by an unaffiliated third party. The Penhex Unit has the capacity! to process approximately 6,700 barrels per day, with the Reforming Unit, the Aromax Unit, and the Cyclo-Pentane Unit further processing streams produced by the Penhex Unit. The Aromatics Hydrogenation Unit has a capacity of approximately 400 barrels per day, and the White Oils Fractionation Unit has a capacity of approximately 3,000 barrels per day. The Hydrocarbon Processing Demonstration Unit has a capacity of approximately 300 gallons per day. The facility generally consists of equipment commonly found in petrochemical facilities, such as fractionation towers and hydrogen treaters except the facility is adapted to produce specialized products. South Hampton produces eight distinct product streams and markets several combinations of blends as needed in various customers��applications.

The Reformer and Aromax units are operated as needed to support the Penhex and Cyclo-pentane Units. The other two operating units at the plant site, an Aromatics Hydrogenation Unit and a White Oils Fractionation Unit, are operated as two, independent and completely segregated processes. These units are dedicated to the needs of two different toll processing customers. Products may be sold directly from South Hampton�� storage tanks or transported to the customers��location for storage and marketing. South Hampton, in support of the petrochemical operation, owns approximately 75 storage tanks with total capacity approaching 225,000 barrels, and 95 acres of land at the plant site, 55 acres of which are developed. South Hampton also owns a truck and railroad loading terminal consisting of storage tanks, four rail spurs, and truck and tank car loading facilities on approximately 53 acres of which 13 acres are developed.

The Company�� mineral interest in the United States is its 55% ownership interest in an inactive corporation, PEVM. PEVM�� properties include 48 patented and 5 unpatented claims totaling approximately 1,500 acres. All of the claims are located in Lincoln County, Nevada.

Advisors' Opinion:

• [By Seth Jayson]

  Arabian American Development (NYSE: ARSD  ) reported earnings on June 26. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), Arabian American Development beat expectations on revenues and beat expectations on earnings per share.

• [By Seth Jayson]

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

5 Best Sliver Stocks To Own Right Now: Hooker Furniture Corporation(HOFT)

Hooker Furniture Corporation, together with its subsidiaries, designs, develops, imports, and markets residential wood, metal, and upholstered furniture products in North America. The company offers wood furniture products, including home entertainment, home office, accent, dining, bedroom, and bath furniture in the upper-medium price points sold under the Hooker Furniture brand, and sold at moderate price points under the Envision Lifestyle Collections by Hooker Furniture brand. It also provides youth bedroom furniture under the Opus Designs by Hooker brand; and motion and stationary leather furniture. In addition, the company offers various residential leather and fabric upholstered furniture under the Bradington-Young and Seven Seas upholstery brand; specializes in leather reclining and motion chairs, sofas, club chairs, and executive desk chairs; and offers upscale occasional chairs and other seating under the Sam Moore upholstery brand. It serves retailers of resident ial home furnishings, including independent furniture stores, specialty retailers, department stores, catalog and Internet merchants, interior designers, and national and regional retail chains. The company was founded in 1924 and is headquartered in Martinsville, Virginia.

Advisors' Opinion:

• [By Ben Levisohn]

  Shares of La-Z-Boy have gained 11% to $27.02 at 1:54 p.m. today. Its performance is also giving other furniture stocks a boost. Flexsteel (FLXS) has risen 1% to $27.60, Hooker Furniture (HOFT) has jumped 1.6% to $17.12 and Ethan Allen International (ETH) has advanced 1.2% to $29.20. Haverty Furniture (HVT) has dipped 0.3% to $27.87.

• [By Dividends4Life]

  Memberships and Peers: LEG is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers��Index and a Dividend Champion. The company's peer group includes: Hooker Furniture Corp. (HOFT) with a 2.7% yield, Flexsteel Industries Inc. (FLXS) with a 1.8% yield and Ethan Allen Interiors Inc. (ETH) with a 1.6% yield.

Top 10 Logistics Companies To Watch For 2015: Medidata Solutions Inc.(MDSO)

Medidata Solutions, Inc. provides software-as-a-service based clinical development solutions for life science organizations worldwide. Its solutions comprise software and services that allow customers to increase the value of their development programs by designing, planning, and managing key aspects of the clinical trial process, including study and protocol design, trial planning and budgeting, site negotiation, clinical portal, trial management, randomization and trial supply management, clinical data capture and management, safety events capture, medical coding, clinical business analytics, and data flow and interoperability. The company primarily offers Medidata Rave, a comprehensive platform for capturing and managing clinical data. It also provides Medidata CTMS, a clinical trial management solution that streamlines operational workflows; Medidata Designer, a protocol development tool that enhances the efficiency of clinical trial start-up; Medidata Insights, a busi ness analytics platform; and Medidata Balance, a randomization and trial supply management solution, which streamlines the process of developing, building, and implementing subject allocation plans. In addition, the company offers Medidata Grants Manager, an application to benchmark the investigator budgets against industry data; Medidata contract research organization (CRO) Contractor, an analytical tool for CRO outsourcing, budgeting, and negotiation; and iMedidata, a hosted portal application that allows investigative sites and sponsor study teams to start trial activities. Further, it provides hosting, support, and professional services. The company serves pharmaceutical, biotechnology, and medical device companies; academic institutions; and CROs and other entities engaged in clinical trials through a direct sales force; and through relationships with CROs and other strategic partners. The company was founded in 1999 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Kevin Marder]

  Among the names, Medidata Solutions (MDSO) is a developer of clinical development software for use in the research of new medical treatments. Most Wall Street analysts forecast earnings growth of 38% in 2013 and 13% in 2014. Revenue growth over the past several quarters has been very steady, at 21%, 24%, 26%, 27% and 27%, respectively.

• [By Jonas Elmerraji]

  Mid-cap medical software stock Medidata Solutions (MDSO) is the smallest name on today's list by far, but it's hard to ignore the technical trade that's been setting up in shares. Even though MDSO has already rallied more than 52% since the start of 2013, this name looks well positioned for some serious continuation in the New Year.

  That's because Medidata is currently forming an ascending triangle pattern, a bullish price setup that's formed by overhead resistance at $62.50 and uptrending support to the downside. Basically, as shares bounce in between those two technical price levels, they're getting squeezed closer and closer to a breakout above resistance. When that move through $62.50 happens, we've got our buy signal.

  MDSO is another name that's been showing off outsized relative strength lately. Considering the fact that the S&P look likely to show us a healthy correction sooner rather than later, positive relative strength trends are the single most important technical indicator traders can ask for right now. When the buy signal comes, I'd recommend putting a stop on the other side of the 50-day moving average.

  
  Berkshire Hathaway (BRK.A)

  Berkshire Hathaway, on the other hand, hasn't been seeing much in the way of relative strength in the last few months. Since the start of July, Berkshire's shares have only managed to gain a third of what the broad market has returned. But a breakout in shares of Warren Buffett's favorite stock means that fortunes are likely about to turn for shareholders.

  Berkshire had been forming symmetrical triangle, a pattern that's formed by converging trendlines squeezing in on the stock's price at a nearly even rate. The symmetrical triangle has less upside bias than the ascending triangle we just looked at, but the trading trigger is essentially the same -- a breakout outside of the pattern is the signal to make a move. So, shares of Berkshire are flashing "buy" now.

  With the brea

• [By Brian Stoffel]

  But I'm not here to talk about these two companies
  I offer those two up as examples that this trend of profiting while helping medical companies save money, is very real. The company I'd like to introduce you to today is much smaller: Medidata Solutions (NASDAQ: MDSO  ) .

• [By Brian Pacampara]

  What: Shares of cloud-based clinical development technologist Medidata Solutions (NASDAQ: MDSO  ) surged 19% today after its quarterly results and outlook topped Wall Street expectations.�

Top 10 Logistics Companies To Watch For 2015: Altair Nanotechnologies Inc.(ALTI)

Altair Nanotechnologies Inc. develops, manufactures, and sells nano-structured lithium titanate spinel, battery cells, battery packs, and multi-megawatt battery systems, as well as provides related design, installation, and test services in the United States and internationally. The company also provides contract research services to develop intellectual property and/or new products and technology. It markets its energy storage solutions to power companies and electric grid operators; and batteries to electric and hybrid-electric bus manufacturers, and other industrial markets. The company was formerly known as Altair International Inc. and changed its name to Altair Nanotechnologies Inc. in July 2002. Altair Nanotechnologies Inc. was founded in 1973 and is headquartered in Reno, Nevada. Altair Nanotechnologies, Inc. operates as a subsidiary of Canon Investment Holdings Limited.

Advisors' Opinion:

• [By Bryan Murphy]

  Anybody who was lucky enough to be in an Altair Nanotechnologies Inc. (NASDAQ:ALTI) position anytime before October 11th, then congratulations - you're now up anywhere between 38% and 157%, depending on when you stepped in. Now get out. Instead, use that capital to step into an Amarin Corporation plc (NASDAQ:AMRN) position, which took a 20% hit on Friday. The rally from ALTI looks like it's ready to unravel, while the implosion from AMRN looks ripe for a reversal too.

Top 10 Logistics Companies To Watch For 2015: Kirkland's Inc.(KIRK)

Kirkland?s, Inc. operates as a specialty retailer of home decor and gifts in the United States. Its stores offer various merchandise, including framed art, mirrors, wall decor, candles and related items, lamps, decorative accessories, accent furniture, textiles, garden-related accessories, and artificial floral products. The company?s stores also provide an assortment of holiday merchandise during seasonal periods, as well as items suitable for gift-giving. It operates stores under the Kirkland?s, Kirkland?s Home, Kirkland?s Home Outlet, and Kirkland?s Outlet names. The company operates its stores in enclosed malls and various off-mall venues, including lifestyle centers, power strip centers, outlet centers, and freestanding locations. Kirkland?s, Inc. also sells its products through its Web site kirklands.com. As of March 08, 2012, it operated 299 stores in 30 states. The company was founded in 1966 and is based in Nashville, Tennessee.

Advisors' Opinion:

• [By Seth Jayson]

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

• [By Laura Brodbeck]

  Thursday

  Earnings Expected From: AVEO Pharmaceuticals, Inc. (NASDAQ: AVEO), Kirkland��, Inc (NASDAQ: KIRK), Dollar General Corporation (NYSE: DG), Stein Mart, Inc. (SMRT: NASDAQ), Mattress Firm Holding Corp. (NASDAQ: MRFM), SeaWorld Entertainment (NYSE: SEAS), Vaalco Energy Inc (NYSE: EGY) Economic Releases Expected: Chinese retail sales, French CPI, Brazilian retail sales, US retail sales, Japanese industrial production

  Friday

• [By Seth Jayson]

  Margins matter. The more Kirkland's (Nasdaq: KIRK  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Kirkland's competitive position could be.

Top 10 Logistics Companies To Watch For 2015: Flushing Financial Corporation (FFIC)

Flushing Financial Corporation operates as the holding company of Flushing Savings Bank, FSB that provides banking products and services primarily to consumers and businesses. The company?s deposit products include savings accounts, money market accounts, demand accounts, negotiable order of withdrawal accounts, and certificates of deposit. Its loan products portfolio comprises one-to-four family, multi-family residential, and commercial real estate mortgage loans; construction loans, primarily for residential properties; small business administration loans and other small business loans; mortgage loan surrogates, such as mortgage-backed securities; U.S. government securities, corporate fixed-income securities, and other marketable securities; and consumer loans, including overdraft lines of credit. The company also offers Internet banking services through iGObanking.com. As of December 31, 2010, it conducted its business through 16 full-service offices located in the New York City Boroughs of Queens, Brooklyn, and Manhattan, as well as in Nassau County, New York. The company was founded in 1929 and is based in Lake Success, New York.

Advisors' Opinion:

• [By Marc Bastow]

  Savings and loan holding company Flushing Financial (FFIC) raised its quarterly dividend 15% to 15 cents per share, payable March 28 to shareholders of record as of March 7.
  FFIC Dividend Yield: 2.86%

Top 10 Logistics Companies To Watch For 2015: Apollo Commercial Real Estate Finance (ARI)

Apollo Commercial Real Estate Finance, Inc., a real estate investment trust, engages in originating, acquiring, investing in, and managing performing commercial first mortgage loans, commercial mortgage-backed securities, mezzanine financings, and other commercial real estate-related debt investments in the United States. The company is qualified as a real estate investment trust (REIT) under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes, if it distributes at least 90% of its REIT taxable income to its stockholders. The company was founded in 2009 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Rich Duprey]

  Mortgage real estate investment trust�Apollo Commercial Real Estate Finance� (NYSE: ARI  ) announced this morning its second-quarter dividend for its 8.625% Series A cumulative redeemable perpetual preferred stock�of $0.5391�per share for the period ending July 15. That's the same rate it's paid for the past three quarters after it was increased 21% from $0.4432 per share.

Top 10 Logistics Companies To Watch For 2015: Intuit Inc.(INTU)

Intuit Inc. provides business and financial management solutions for small and medium-sized businesses, consumers, accounting professionals, and financial institutions primarily in the United States, Canada, India, Singapore, and the United Kingdom. The company offers QuickBooks financial and business management software and services, technical support, financial supplies, and Web site design and hosting services for small and medium-sized businesses; and payroll products and services, as well as merchant services comprising credit and debit card processing, electronic check conversion, and automated clearing house services for small businesses. It also provides TurboTax income tax preparation products and services for consumers and small business owners; Lacerte and ProSeries professional tax products and services; and QuickBooks Premier Accountant Edition and the QuickBooks ProAdvisor Program for accounting professionals. In addition, the company offers outsourced online financial management solutions for banks and credit unions; Quicken personal finance products and services; Mint.com online personal finance services; and Intuit Health online patient-to-provider communication solutions. It sells its products and services through various sales and distribution channels, including Websites, promotions, retail channels, and call centers, as well as through alliance partners, principally consisting of banks, credit unions, and securities and investment firms. The company was founded in 1983 and is headquartered in Mountain View, California.

Advisors' Opinion:

• [By Selena Maranjian]

  When looking for promising candidates for your stock portfolio, it's easy to just think about the prominent names of the day, such as Facebook, Ford, or Bank of America. But there are plenty of other possibilities, many of which have been under our nose for quite some time.
  
  Permit me to introduce you to Automatic Data Processing (NASDAQ: ADP  ) , often referred to as ADP. Here are a bunch of interesting things about ADP the company and ADP stock.

  Here's a key reason you may want to keep reading -- ADP stock's performance: It's up about 33% over the past year, and has averaged annual gains of 13.6% �over the past 30 years. Great performances are never guaranteed, but this company's management clearly knows a thing or two about executing well.�
  � The basics: The company began in 1949 �as Automatic Payrolls, based in New Jersey. It aimed to assist companies with some of their payroll and related processes by applying technology. Today, still based in New Jersey, it's an outsourcing powerhouse, with a market capitalization near $35 billion. (One of its closest competitors is Paychex (NASDAQ: PAYX  ) , with a market cap of just $14 billion.) It serves some 600,000 customers in more than 125 nations and rakes in more than $11 billion annually, keeping about 13% of that, more than $1.4 billion, as net profit.
  � ADP is of interest to many more people than just holders (or would-be holders) of ADP stock. That's because, since it serves such a significant chunk of American employers, cutting many millions of paychecks, it has its finger on the pulse of our economy. Thus, the company regularly issues national employment reports. (In early July, it reported private-sector employment rising by 188,000 jobs in June.)
  � As a business, ADP has grown both in size and depth. In its own history, it notes that in the 1990s, "clients that once were content to outsource applications to a service provider looked to outsource entir

Top 10 Logistics Companies To Watch For 2015: Celsius Holdings Inc (CELH)

Celsius Holdings, Inc., incorporated on April 26, 2005, is engaged in the development, marketing, sale and distribution of functional calorie-burning beverages under the Celsius brand name. The Company focuses to combine nutritional science with mainstream beverages by using its thermogenic (calorie-burning) MetaPlus formulation. The Company does not directly manufacture its beverages, but instead outsource the manufacturing process to established third-party co-packers. The Company provides its co-packers with flavors, ingredient blends, cans and other raw materials for its beverages purchased by the Company from various suppliers. Celsius, Inc. and Elite FX, Inc. are the wholly owned subsidiaries of the Company.

The Company�� Celsius is a calorie-burning beverage. Celsius is available in seven flavors, lemon-lime, ginger ale, cola, orange and wild berry (which are carbonated) and non-carbonated green tea raspberry/acai and green tea/peach mango. Its beverages are sold in 12 ounce cans, although it has begun to market the ingredients in powdered form in individual On-The-Go packets. The Company�� customer�� include on-the-go women, age 25 to 54, who are looking for a way to burn calories and gain energy with beverages and natural alternatives to diet sodas, as well as sports enthusiasts of both sexes, who are seeking low sodium, preservative-free alternatives. During the year ended December 31, 2009, the Company developed its MetaPlus formulation into a powder that can be mixed with water.

The Company competes with The Coca-Cola Company, Dr. Pepper Snapple Group, PepsiCo, Inc., Nestl茅, Waters North America, Inc., Hansen Natural Corp., and Red Bull.

Advisors' Opinion:

• [By John Udovich]

  Monster Beverage Corp (NASDAQ: MNST), a mid cap marketer and distributor of energy drinks and alternative beverages, has been a monster of a performer since the end of the financial crisis as the stock is up around 308% over the past five years, but could new or overlooked players like small cap beverage stocks�Jones Soda Co (OTCMKTS: JSDA), Celsius Holdings, Inc (OTCMKTS: CELH) and Konared Corp (OTCBB: KRED) repeat that performance? A look strictly at the long term performance of all three small caps might have you thinking otherwise. After all, none of these small cap beverage stocks are profitable while�the beverage industry can be a long hard expensive slog just to increase market share by one or two points when you are competing for shelf space with industry giants like Pepsi and Coke. But past performance is just that���the past and only part of the story as there is much more to consider about these small cap beverage stocks which could also make them potential acquisition targets by larger beverage players seeking to expand their product line up with innovative products: