Should I Buy SBUX Stock? 3 Pros, 3 Cons

Starbucks (SBUX) has been piping hot in the last year, with shares of SBUX stock up 60% since November of 2012.

Recently, Starbucks earnings came strong at 63 cents per share of SBUX stock for the fourth quarter — 3 cents ahead of analyst estimates. Plus, the Starbucks earnings report for all of 2013 revealed 23% growth in operating income, along with 7% growth in same-store sales.

And SBUX stock could have even more upside if its Teavana purchase pays off. But that purchase is a pretty big question mark.

So should you bet on Starbucks stock at these levels? Let's take a look at the pros and cons.

Pros on SBUX Stock

Strong sales. Once again, same-store sales in both the U.S. and China increased 8% during the fourth quarter. After all these years, SBUX continues to be the go-to destination for people who not only want coffee, but some neutral territory to meet at. That was the original and brilliant concept for Starbucks — a place between work and home that people could meet to socialize. Then SBUX tacked on an addictive product to sell and history was made. SBUX stock has consequently faired very well as the concept caught on.

Store growth is strong. SBUX opened over 1,700 new stores in this past fiscal year and plans to add another 1,500 stores during 2014, half of which will be in China. As Starbucks expands its footprint, its earnings should increase and SBUX stock should follow. Once stores are opened, they add cash flow soon thereafter.

Teavana shows great promise. The global tea market exceeds $90 billion, and tea is the second most-consumed beverage after water. Starbucks aims to open over 1,000 locations in the next five to ten years. Already, tea sits in some 80% of U.S. households and CEO Howard Schultz believes that SBUX can do for tea what it did for coffee. Starbucks stock won't reflect this endeavor for some time to come. But when the stores start to open, SBUX earnings will follow.

Cons on SBUX Stock

Valuation. SBUX stock trades at over $80 as of this writing. Meanwhile, Starbucks earnings for 2014 — not the just-reported year but the next one — are expected to be $2.65. The good news: That's a 19% increase in Starbucks earnings. The bad news: It means SBUX stock trades at 30x analyst's estimates. That's incredibly expensive, even if one gives SBUX stock a premium for having great cash flow.

Danger of over-expansion. Several years ago, Starbucks overexpanded. There were stores everywhere here in the U.S., and I saw as many as four stores within a two-block radius in Los Angeles. As a result, the company had to close a lot of stores and SBUX stock suffered as a result. Now SBUX is at it again with its aggressive expansion, and could overdo it.

Teavana not a slam dunk. Sure, it sounds like the play for tea drinkers will work … and nobody is better at executing than Howard Schultz. However, the worst possible thing for SBUX stock would be if this were an example of Peter Lynch “di-worse-ification.” If Teavana doesn’t pan out, it would mean the $670 million acquisition, plus capital expenditures to open stores, would fail. That would drag down earnings and SBUX stock along with it.

Verdict on SBUX Stock

There is a lot to like about Starbucks stock. Two other selling points: Cash flow is amazing at about $1 billion a year, and the company has about $1.70 per share of SBUX stock in cash.

But right now, SBUX stock is trading for a frothy 30 times estimated 2014 Starbucks earnings. At that level, it simply isn’t a good time to buy.

If Starbucks stock falls back to 25x earnings, then I'd buy.

As of this writing, Lawrence Meyers did not hold a position in any of the aforementioned securities.

Most popular Halloween candy in the USA

Chocolate is big business, and Halloween is its biggest holiday. According to a recent survey from the National Confectioners Association, 72% of all candy spending this Halloween will be on chocolate. Last year, more than $12.6 billion was spent on chocolate in the United States, 3.8% more than the year before.

According to market research firm Information Resources, in the past 52 months ending Sept. 8, Americans spent $3.9 billion to buy 3.5 billion chocolate bars, bags and boxes under 3.5 ounces, the standard size consumers pick up at a grocery store checkout. Reese's and M&M's each accounted for more than $500 million in sales. Based on IRI's data, 24/7 Wall St. reviewed the 10 chocolate brands with the largest sales during the last year.

MORE: Report on the USA's richest and poorest cities

The chocolate industry is extremely concentrated among just a few competitors. Each of the 10 best-selling chocolate brands is owned by either Hershey (HSY) or Mars. In the past year, Hershey made close to half of all standard-sized chocolate sales in dollars, and Mars accounted for nearly 38% of sales. Only two of the 20 most popular products, Nestle's Butterfinger and Crunch, were made by another company.

The two companies that dominate this market, Hershey and Mars, have been moving in different directions. Dollar sales for the top four Mars brands declined in the past year. Its worst-performing top brand was 3 Musketeers, which fell nearly 10% from the year before. By contrast, sales of all of Hershey's top five brands grew over the past year, led by Kit Kat. Sales of that brand rose by more than 22% to over $300 million.

Most top-selling chocolate brands have been long-time consumer favorites. The nation's oldest top-seller, Hershey's brand chocolate, has been available since 1900. Only two of the brands are relatively new — introduced to the U.S. after 1950. Hershey's Cookies 'N' Creme, the most-recent top-selling chocolate, debuted in 1994.

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These brands not only compete for customer dollars at the checkout line, they also sell their products in other forms. Snack sizes — miniature versions of a chocolate candy bar — are especially popular with trick-or-treaters on Halloween. While most of the top standard size brands also rank among the highest for sales of snack-size chocolate, there are some exceptions. M&M's and 3 Musketeers are relatively less popular in snack size than in the standard size.

Based on data from IRI, a Chicago-based market research firm, 24/7 Wall St. reviewed the top 10 selling chocolate brands in the U.S. during the 52 weeks ending Sept. 8. According to IRI's methodology, chocolate candy sizes fall into multiple categories, including: weighing less than 3.5 ounces, weighing more than 3.5 ounces and snack size (which is excluded from the less than 3.5-ounce category). Our ranking is based on sales of candy units weighing less than 3.5 ounces, which includes most standard size American candy bars. Sales listed were based on sales in U.S. multi-outlet and C-stores (supermarkets, drugstores, mass market retailers, gas/C-stores, military commissaries and select club and dollar retail chains.)

This is America's favorite Halloween candy:

1. Reese's
> Sales: $509.85 million
> Unit sales: 407.44 million
> Average price per unit: $1.25
> Introduced: 1928
> Company: Hershey
Reese's regular size (less than 3.5 oz) peanut butter cups jumped by 7.7% to just under $510 million in the past year, outstripping M&M's from its top spot as the best-selling chocolate. As a result, the brand overtook M&M's as the nation's best-selling chocolate candy. Overall, with Reese's and several other major brands sales growing over the past 12 months, the Hershey Co. dominated the market for standard-size chocolate candy, accounting for roughly 49% of customer spending. Halloween marks a major sales opportunity for Reese's as well. The brand leads in sales of sn! ack-sized! packages, which are often given out to trick-or-treaters.

2. M&M's
> Sales: $500.82 million
> Unit sales: 435.18 million
> Average price per unit: $1.15
> Introduced: 1941
> Company: Mars
Sales of M&M's only trail sales of top chocolate brand Reese's by a small amount. But the brand lost its position as the best-selling chocolate after sales fell by more than 3% during the 52 weeks ending in early September. In terms of total units sold, M&M's did even worse, with unit sales down 7.5% from the same period the year before. M&M's also may not see the same sales boost other candy makers see during the Halloween season. Although it is the second highest selling regular size candy, it ranks only eighth among brands in snack-sized sales.

3. Snickers
> Sales: $456.91 million
> Unit sales: 412.81 million
> Average price per unit: $1.11
> Introduced: 1930
> Company: Mars
Snickers bar sales fell by more than 7% to just under 413 million units in the most recent 52 weeks available. This mirrored the decline in the under 3.5 oz category Mars faced across all of its brands, for which unit sales fell by 7.7%. Snickers has been around since 1930, and in recent years has made a major advertising push with its celebrity-filled, "You're not you when you're hungry," campaign. The first commercial in the campaign, which aired during the 2010 Super Bowl, featured actress Betty White getting tackled in a backyard football game. It was an instant sensation.

4. Hershey's
> Sales: $324.63 million
> Unit sales: 308.42 million
> Average price per unit: $1.05
> Introduced: 1900
> Company: Hershey
Hershey has been making many of its most famous brands for decades, and it has made Hershey's branded milk chocolate bars since 1900. Although most of the company's brands have been around for quite a while, Hershey is planning to introduce its first new U.S. brand in decades in 2014. Sales of the company's! long-sta! nding brands have risen recently, mostly because of advertising pushes. According to IRI, sales of standard-size Hershey's-branded chocolate bars rose by nearly 8% in dollar terms and 7% in unit terms. The brand's dollar sales for snack sizes, popular around Halloween, have also increased by nearly 12%.

5. Kit Kat
> Sales: $306.51 million
> Unit sales: 275.88 million
> Average price per unit: $1.11
> Introduced: 1935
> Company: Hershey
Sales of few chocolate bars grew faster than Kit Kats over the past year. In that time, the number of Kit Kat bars sold rose 17.8%, while dollar sales rose by more than 22%. Recently, Kit Kat launched a co-promotion with Google, which code-named the most recent version of its Android operating system "KitKat." The Kit Kat brand, owned by Nestle, is popular worldwide. The Hershey Company, however, licenses and manufactures the chocolate in the United States.

MORE: For the rest of the top 10 popular Halloween candy list

24/7 Wall St. is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

3 Tech Stocks Under $10 to Watch

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>5 Hated Earnings Stocks You Should Love

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Rocket Stocks for a Volatile Week

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.

Parkervision

Parkervision (PRKR) designs, develops and markets proprietary radio frequency technologies and products for use in semiconductor circuits for wireless communication products in the U.S. This stock closed up 2% to $4.91 in Tuesday's trading session.

Tuesday's Range: $4.33-$4.94

52-Week Range: $2.16-$7.78

Tuesday's Volume: 1.23 million

Three-Month Average Volume: 1.19 million

From a technical perspective, PRKR spiked modestly higher here right off its 50-day moving average of $4.48 with above-average volume. This spike is starting to push shares of PRKR within range of triggering a major breakout trade. That trade will hit if PRKR manages to take out Tuesday's high of $4.94 to some more near-term overhead resistance levels at $5.12 to $5.30 with high volume.

Traders should now look for long-biased trades in PRKR as long as it's trending above its 200-day at $4.08 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.19 million shares. If that breakout hits soon, then PRKR will set up to re-test or possibly take out its next major overhead resistance levels at $6 to $7.

Identive Group

Identive Group (INVE) provides secure identification solutions that allow people to gain access to the buildings, networks, information, systems and services in the Americas, Europe and the Asia-Pacific. This stock closed up 7.4% to 99 cents per share in Tuesday's trading session.

Tuesday's Range: $0.90-$1.04

52-Week Range: $0.49-$1.60

Tuesday's Volume: 1.40 million

Three-Month Average Volume: 373,455

From a technical perspective, INVE spiked notably higher here right off some near-term support at 90 cents per share with heavy upside volume. This stock has been uptrending strong for the last two months, with shares ripping higher from its low of 49 cents to its recent high of $1.06. During that move, shares of INVE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of INVE within range of triggering a near-term breakout trade. That trade will hit if INVE manages to take out Tuesday's high of $1.04 to some more near-term overhead resistance at $1.06 with high volume.

Traders should now look for long-biased trades in INVE as long as it's trending above 90 or 85 cents and then once it sustains a move or close above those breakout levels with volume that hits near or above 373,455 shares. If that breakout hits soon, then INVE will set up to re-test or possibly take out its next major overhead resistance levels $1.20 to its 52-week high at $1.60.

Camtek

Camtek (CAMT), together with its subsidiaries, designs, develops, manufactures and markets automatic optical inspection systems and related products. This stock closed up 10.4% to $5.40 in Tuesday's trading session.

Tuesday's Range: $4.94-$5.60

52-Week Range: $1.35-$6.43

Tuesday's Volume: 4.31 million

Three-Month Average Volume: 2.35 million

From a technical perspective, CAMT spiked sharply higher here and broke out above some near-term overhead resistance at $5.29 with heavy upside volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $3.33 to its recent high of $5.68. During that uptrend, shares of CAMT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CAMT within range of triggering a major breakout trade. That trade will hit if CAMT manages to take out some key overhead resistance levels at $5.68 to $5.75 with high volume.

Traders should now look for long-biased trades in CAMT as long as it's trending above Tuesday's low of $4.95 or above more near-term support at $4.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.35 million shares. If that breakout hits soon, then CAMT will set up to re-test or possibly take out its 52-week high at $6.43. Any high-volume move above $6.43 will then give CAMT the chance to tag $8 a share.

5 Best Blue Chip Stocks To Own Right Now

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Industrial Stocks to Skirt the Selling

>>3 Stocks Rising on Big Volume

>>4 Big Stocks on Traders' Radars

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com.

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

U.K. posts fastest growth since 2007

LONDON (CNNMoney) The U.K. reinforced its standing as one of the strongest major economies Tuesday with official figures showing the fastest annual rate of growth since 2007.

Gross domestic product expanded by 1.9% in 2013 -- compared with 0.3% in 2012 -- and there are signs that the recovery is extending beyond consumer spending and the housing market.

Economists are increasingly optimistic about the British economy's prospects, with many forecasting strong growth in the coming years.

Investec economist Philip Shaw notes that there is "a reasonable chance that growth will be recorded in excess of 3.0%" in both 2014 and 2015.

"Looking at general sectors, the recovery has been encouragingly broad based," said Shaw. "Manufacturing and services have expanded in each of the past three quarters, and while construction showed a small decline [in the fourth quarter], it has grown by 4.6% over the past year."

If the pace of growth is maintained, the U.K. economy should finally recover all the output lost since the financial crisis in the second quarter of this year.

The speed of the recovery has caught the Bank of England off guard, and prompted analysts to predict an interest rate rise as early as the fourth quarter of 2014.

Just a year ago, the country was teetering on the brink of a triple-dip recession. But unemployment is now falling fast, and the housing market is roaring, especially in London.

Last week, official data showed unemployment fell to 7.1% in November, just above the central bank's 7.0% threshold for considering a rise in interest rates.

  Goldman exec: World needs faster growth

Governor Mark Carney said in August the bank did not expect to see that level for three years.

Speaking at the World Economic Forum in Davos last week, Carney stressed that there would be "no immediate need" for an increase in the cost of borrowing even when the threshold is reached, because the U.K. was still some way from achieving "escape velocity."

"A few quarters of above-trend growth driven by household spending represent a good start, but they aren'! t sufficient."

Hot Undervalued Stocks To Own Right Now

With shares of The Home Depot (NYSE:HD) trading at around $77.88, is HD an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock�� Movement

Home Depot has been performing well. Is this momentum sustainable?

The Goldman Sachs Group (NYSE:GS) stated that investors may have to wait until Q2 results before seeing any meaningful acceleration in home improvement retailers. Goldman Sachs has set an $81 price target for Home Depot and rated it neutral due to premium valuation and near-peak margins. Oppenheimer has rated Home Depot and Lowe�� Companies Inc. (NYSE:LOW) an Outperform.

As far as home prices go, single-family homes have increased the most since 2006. Experts in the industry feel that homes are still undervalued by approximately 7 percent. This would�mean more room to run for home improvement retailers. The industry has performed well year-to-date, but the consensus on the street is that the industry�� potential has been inhibited by colder-than-normal temperatures in the northeast.

Hot Undervalued Stocks To Own Right Now: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:

• [By David Smith]

  Admittedly, Chevron (NYSE: CVX  ) is partnering with Saudi Aramco in production efforts in the Partitioned Zone between Saudi Arabia and Kuwait. And oil-field services and technology kingpin Schlumberger (NYSE: SLB  ) has planted major facilities in the country. But it seems that a more widespread use of western companies' capabilities could do wonders for Saudi reserves and production longevity.

• [By Monica Gerson]

  Schlumberger (NYSE: SLB) is estimated to report its Q3 earnings at $1.24 per share on revenue of $11.58 billion.

  Honeywell International (NYSE: HON) is projected to report its Q3 earnings at $1.24 per share on revenue of $9.92 billion.

• [By David Smith]

  As June came to an end, the company finalized a joint venture, OneSubsea, with Schlumberger (NYSE: SLB  ) . The intriguing partnership -- in which Cameron has a 60% interest, with the remainder Schlumberger's -- will develop products, systems, and services for the subsea oil and gas market.

Hot Undervalued Stocks To Own Right Now: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:

• [By John Udovich]

  Everyone is familiar with�the Tupperware brand from�consumer products stock Tupperware Brands Corporation (NYSE: TUP) and you are probably familiar with the brands�of mid cap stock Jarden Corp (NYSE: JAH) along with small cap stocks Libbey Inc (NYSEMKT: LBY) and Lifetime Brands Inc (NASDAQ: LCUT); but what about the stocks themselves? Chances are, their brands or products are right under your nose at home and you probably don�� know anything about the mid cap or small cap stock behind them.

Top 5 Companies To Buy Right Now: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:

• [By ANUP SINGH]

  Coal consumption growth in China is estimated to have slowed down to 4% year on year in 2012, down from 10% in 2011. An economic slowdown in�the country�has affected demand, and this has been one of headwinds for Joy because it has substantial exposure to China. Caterpillar (NYSE: CAT  ) , one Joy's competitors, is also facing trouble in China of late.

• [By Travis Hoium]

  Caterpillar (NYSE: CAT  ) is up 2.3% a day after announcing a 15% boost to its quarterly dividend. Investors will now be paid a dividend of $0.60 per quarter, with the first installment going to shareholders of record on July 22. Dividends are one of the best ways for companies to provide a return for investors, and an increase like this is an indication that management is confident about the future of the company.

Hot Undervalued Stocks To Own Right Now: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:

• [By Jon C. Ogg]

  Dollar Tree Inc. (NASDAQ: DLTR) was maintained as a Buy but was removed from the prized Conviction Buy list at Goldman Sachs.

  Duke Energy Corp. (NYSE: DUK) was raised to Buy from Hold with a $79 price target at Argus.

• [By John Maxfield]

  If you're anything like me, two things went through your head when you saw this. First, you regret that you missed out on the investment opportunity. Since the end of 2009, shares in all three of these companies, led by Dollar Tree (NASDAQ: DLTR  ) , have simply trounced the broader market. Even the worst performer of the bunch, Family Dollar (NYSE: FDO  ) , beat it by nearly a factor of two.

• [By Paul Ausick]

  The other stock the firm likes is Dollar Tree Inc. (NASDAQ: DLTR). The company�� shares have lost about 4.6% since reporting an earnings per share (EPS) miss for the third quarter and the Sterne Agee analysts see the lower price as a ��reat entry point��for buying the stock. Dollar Tree raised fiscal year 2013 EPS guidance from a range of $2.66 to $2.77 to a new range of $2.72 to $2.78, effectively raising the mid-point by $0.04. Sterne Agee reiterated its Buy rating on the stock with a price target of $63. Dollar Tree�� shares are trading down nearly 0.4% at $55.99 in a 52-week range of $37.47 to $60.19.

Federal Agencies, Servicemembers Brace for Possible Shutdown

Federal agencies are once again finding themselves in the position of having to decide what to do if the federal government shuts down next Monday evening.

As published reports have maintained, much of the government will continue to function, including mail service and troops staying put. But the paychecks of more than 800,000 federal workers could be jeopardized if they’re told to stay home next week, according to The Washington Post.

Indeed, while more than 2 million other employees who are considered essential by the government—including the active military—would be entitled to their salaries, they may not get paid on time, the Post reported.

A glance at federal agencies’ contingency plans as of Tuesday on the Office of Management and Budget’s website shows a list of plans that haven’t been touched since the last shutdown loomed in 2011.

Top Tech Companies To Buy For 2015

Indeed, John Nester, a spokesman for the Securities and Exchange Commission, told ThinkAdvisor Tuesday that the SEC is “currently reviewing” its plan and has “no update” to report at the present time.  

As Time reported on Tuesday, it’s safe to “assume that most agency priorities have not significantly changed: in many cases the spending bill that is set to expire Monday is the same one that nearly expired two years ago.”

However, The Post notes that while no law exists requiring that nonessential employees be compensated if they are ordered off the job, Congress has in the past voted to reimburse their losses once shutdowns ended. “But this go-round could be different. The bitterly divided Congress includes many lawmakers who are unsympathetic to the plight of federal workers and could be loath to help them recoup their money,” says The Post.

The just–released First Command Financial Behaviors Index found that the majority of servicemembers and their families doubt that lawmakers will take appropriate actions to avoid a government shutdown in October or a second round of sequestration in the coming year.

The latest survey results reveal that 86% of middle-class military families (senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000) are not confident that Congress will pass a continuing resolution to fund the government by Sept. 30 and avoid a partial shutdown of federal operations. Also, 71% doubt that lawmakers will be able to take appropriate action to avoid another sequester in the new fiscal year, which begins Oct. 1.

But Senate Majority Leader Harry Reid, D-Nev., said on the Senate floor Monday that two dozen Senate Republicans have spoken out against Tea Party Republicans’ “foolhardy plan to drive the economy off a cliff, Thelma and Louise style.”

The reviews are in: “The ransom demanded by House Republicans in exchange for keeping the government open is unworkable and unrealistic,” Reid stated in reference to the bill passed by the House Sept. 20, which funds the government until mid-December but seeks to defund the Affordable Care Act.

President Barack Obama “has been clear," Reid said. "I have been clear. Any bill that defunds Obamacare is dead on arrival in the Senate.”

Reid went on to state that this week the Senate “will act as quickly as Tea Party Republicans will allow. Once the Senate has acted, House Republicans will face a choice whether to pass a clean continuing resolution or shut down the federal government.”

---

Check out Government Shutdown Wars Return: 5 Reasons This Time Is Worse on ThinkAdvisor.

Platform Lists on NYSE After MacDermid Deal, Pershing Stake

Updated to describe shares outstanding, instead of beneficial ownership.

NEW YORK (TheStreet) -- Martin E. Franklin, chairman of Jarden  (JAH), and a team of investors including Nicolas Berggruen of Berggruen Holdings and Bill Ackman's Pershing Square Capital Management are going from cheeseburgers to specialty chemicals.

On Thursday, Franklin brought the new deal, Platform Specialty Products, to the New York Stock Exchange after acquiring specialty chemical manufacturer MacDermid for $1.8 billion in October of 2013. The structure of Platform Specialty Products' listing on the NYSE is similar to a deal that three struck in April 2012, which returned Burger King Worldwide (BKW) to public stock markets.

In Burger King's listing, Justice Holdings, a London-listed Ackman and Berggruen-backed acquisition vehicle bought a large stake in the hamburger chain from private equity fund 3G Capital for $1.4 billion and used the deal return it to the NYSE. Justice Holdings was dissolved and Ackman's Pershing Square and Berggruen became large minority investors in Burger King, to go with 3G Capital's majority stake.

While 3G Capital moved onto an even larger burger-related acquisition, a $28 billion takeover of ketchup-maker Heinz with financing from Warren Buffett's Berkshire Hathaway (BRK.A), Franklin began scouring for a next deal with backing from Pershing Square and Berggruen.  Platform was incorporated in April of 2013 and listed on the London Stock Exchange with the intent to buy companies with an enterprise value of between $750 million and $2.5 billion. The acquisition vehicle found its first deal in a $1.8 billion acquisition of MacDermid, a specialty chemicals manufacturer that had been considering an initial public offering, but instead saw an opportunity to take Franklin & Platform on as a partner. 

On Thursday, Platform Specialty Products pulled their shares from the London Stock Exchange and listed them on the NYSE under ticker "PAH." The cast of characters in Platform and their strategy is slightly different to Justice Holdings' whopper Burger King deal. MacDermid's CEO Daniel H. Leever will run Platform Specialty Products and the company's strategy will hinge on both making acquisitions in the specialty chemicals space and re-investing in MacDermid's core business. Martin E. Franklin of Jarden Corp. is chairman of the company and expects to help Leever, a longtime executive at MacDermid whose family ties to the company stretch back to the 1930s, on strategy and future acquisitions. Leever said in an interview with TheStreet on Thursday that he chose to sell MacDermid to Platform over an initial public offering because he believed Franklin would be a strong partner in identifying growth opportunities and brokering acquisitions. In contrast to the Burger King deal, Franklin said he will have a "hands on" role with Platform, especially in making acquisitions, a skill he's demonstrated at Jarden. Ackman, who was a board member of Justice Holdings and pitched his Burger King deal at investor conferences, won't have any direct ties to Platform. Pershing Square, however, will hold roughly 28% of Platform's outstanding shares, an over $400 million investment, according to Bloomberg data. Franklin said in an interview with TheStreet he offered Ackman a director role on Platform's board. Ackman declined, however, he recommended Ryan Israel a young partner at Pershing Square as a candidate. Before joining Pershing, Ryan Israel, 28, was an investment banking analyst in the technology, media and telecom group at Goldman Sachs (GS) between 2007 and 2009. Franklin was impressed with Israel's smarts and accepted Ackman's recommendation. "I tend to gravitate towards bright people no matter their age... It is going to be a great experience for him," said Franklin. Israel is also a board member of Root Capital, a nonprofit social investment fund that targets agriculture. Other Platform board members have longer histories on Wall Street. E. Stanley O'Neal, the oft-criticized former chief executive of Merrill Lynch, will be a Platform board director and will chair the firm's compensation committee. For O'Neal, it will be one of his biggest roles since being unceremoniously fired from Merrill and accused by heirs of the firm's founders of setting the investment bank on a path toward ruin. O'Neal, however, has built strong ties to the industrials sector since leaving Wall Street. He's been a board member of Alcoa (AA) since 2008. Franklin, Platform's chairman, said on Thursday that the company weighed O'Neal's experience in banking when nominating him to its board. Franklin characterized O'Neal as someone with "great life experiences" and who still has many friends in the business community. "He will be a great director," Franklin said.

In November, O'Neal and another board member, Michael Goss, each purchased over 190,000 shares in Platform at $10.50 a share. Platform's founders Franklin and Berggreun also acquired shares in November.

According to filings with the Securities and Exchange Commission, Berggreun will own 4.5% of Platform's outstanding shares, while a vehicle controlled by Franklin will own about 5% of the company's outstanding stock. Pershing Square will own about 28% of Platform's outstanding shares.

Stock quotes in this article: BKW, PAH 

The Leever Family and MacDermid

Platform's CEO Dan Leever began working at MacDermid in 1982. His family's roots with the company, however, trace back to the late 1930s.

Dan's father Harold Leever joined MacDermid in 1938 as its first research and development chemist and quickly rose through the ranks of the company, becoming CEO in the early 1940s. In 1959, Harold led an employee buyout of the company from its founder Archie J. MacDermid.

Dan Leever took over reins of MacDermid in 1990 as the company listed its shares on the New York Stock Exchange. In 2006, Leever, Joseph M. Silvestri of Court Square Capital Partners and private equity firm Weston Presidio bought MacDermid in a $1.3 billion leveraged buyout.

In 2011, Leever and MacDermid's private equity owners began exploring an initial public offering. In the end, Leever, a controlling shareholder in MacDermid, opted to join ranks with the likes of Martin Franklin, Nicolas Bergrruen and Pershing Square.

Platform estimates it paid approximately $925 million in cash for MacDermid owners and issued approximately $100 million of new equity to the sellers. The company also assumed over $750 million in MacDermid debt.

Leever expects to be among Platform's biggest shareholder after rolling 100% of his MacDermid equity into the company. "With Martin Franklin, my family and I have signed on with a new partner," Leever said.

MacDermid as a Platform for Acquisitions Franklin said in an interview that shortly after creating Platform, the company and its bankers Barclays and Lazard initially looked into buying assets owned by French oil giant Total (TOT). The deal, however, wasn't actionable so Franklin instructed its bankers to look into acquisitions within the specialty chemicals space. MacDermid quickly came to the top of their list of prospective acquisitions, given its profile of about $180 million in earnings before interest, taxes, depreciation and amortization (EBITDA) and low-capex. Franklin characterizes MacDermid an "asset light" high cash flow business that can help Platform with future acquisitions.

Stock quotes in this article: BKW, PAH 

MacDermid's businesses span specialty areas such as adhesives, water treatment operations, crop protection and coatings.

The company splits its performance materials segments into industrial, electronics, offshore and graphic solutions segments. It's customer base ranges from electronics firms such as LG and Samsung, to automakers General Motors (GM), Ford (F) and Fiat and offshore oil and gas drillers.

Of the firm's 2,000 employees worldwide, approximately 1,000 are R&D chemists, underscoring that MacDermid isn't the traditional plant and equipment heavy industrial firm.

Through the first nine months of 2013, Macdermid's operations generated net revenue of $560 million and $24 million in net income. MacDermid's performance materials division generated $429 million in net revenue and its graphic solutions division generated $131 million in net revenue through the first three quarters of 2013.

Franklin said there are plenty of companies for Platform to target and he expects that after its NYSE listing, the firm will be able to use MacDermid to tap capital markets for future acquisitions. "Our strategy is to provide a good home for solid management teams where we respect their business DNA...This is going to be an acquisition story as well as an organic growth story," Franklin said of Platform. Shares in Platform Specialty Products were falling more than 1% to $14.70 in early Friday trading. The company currently carries a market capitalization of about $1.5 billion. -- Written by Antoine Gara in New York Follow @antoinegara

Stock quotes in this article: BKW, PAH 

Will a New CEO Help or Hurt Ford Motor?

With shares of Ford Motor (NYSE:F) trading around $17, is F an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock's Movement

Ford is a producer of cars and trucks. The company also engages in other businesses, such as financing vehicles. Ford operates in two sectors — automotive and financial services. Through its sectors, Ford provides a wide range of vehicles, vehicle parts, and services to a multitude of consumers and companies worldwide. The company's products saw declining demand in the past several years as gasoline prices took a major toll on pockets. Ford Motor is now revolutionizing its vehicles in order to compete on the world stage. Look for Ford to fuel a recovery in the American automobile industry and provide highly demanded vehicles, parts, and services.

Ford Chief Executive Officer Alan Mulally may be leaving the company earlier than had previously been expected as the company's board is feeling more comfortable with the idea of Chief Operating Officer Mark Fields taking the position, Reuters reported. Mulally is widely credited with saving the automaker after the financial crisis of 2008 and wasn't supposed to step down until the end of 2014. Sources told Reuters that now the board is giving Mulally the freedom to decide when he'd like to leave.

T = Technicals on the Stock Chart Are Strong

Ford Motor stock has been surging higher over the last year. The stock is now trading near highs not seen since early 2011. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Ford Motor is trading slightly above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Ford Motor Options	28.75%	63%	61%

What does this mean? This means that investors or traders are buying a significant amount of call and put options contracts as compared to the last 30 and 90 trading days.

	Put IV Skew	Call IV Skew
September Options	Flat	Average
October Options	Flat	Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let's take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Ford Motor's stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Ford Motor look like and more importantly, how did the markets like these numbers?

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	15.38%	14.29%	-88.17%	0.00%
Revenue Growth (Y-O-Y)	14.71%	10.37%	5.34%	-2.65%
Earnings Reaction	2.53%	-0.22%	-4.64%	8.59%

Ford Motor has seen mixed earnings and rising revenue figures over the last four quarters. From these numbers, the markets have been mixed with Ford Motor's recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has Ford Motor stock done relative to its peers General Motors (NYSE:GM), Toyota Motor (NYSE:TM), Tesla Motors (NASDAQ:TSLA), and sector?

	Ford Motor	General Motors	Toyota Motor	Tesla Motors	Sector
Year-to-Date Return	32.32%	26.57%	35.19%	393.50%	28.49%

Ford Motor has been an average relative performer, year-to-date.

Conclusion

Ford is a well-established vehicle products and services producer, distributed in a multitude of countries across the globe. The company may be losing its Chief Executive Officer sooner than expected. The stock has been surging over the last year and is now trading at highs not seen for a couple of years. Over the last four quarters, investors in the company have had mixed feelings as revenues have been rising while earnings have been mixed. Relative to its peers and sector, Ford Motor is an average year-to-date performer. Look for Ford Motor to OUTPERFORM.

Schorsch's pickup of J.P. Turner: "Such a bargain!"

Bloomberg News

Nick Schorsch has been snapping up broker-dealers with the fervor of Carrie Bradshaw from “Sex and the City” chasing down her next pair of Manolo Blahniks.

But last Friday, Mr. Schorsch's latest deal sounded an odd note to some, as if Carrie announced to her BFFs that she had bought her latest pair of pumps on the streets of Chinatown instead of Barneys.

That's when RCS Capital Corp., of which Mr. Schorsch is chairman, said it intended to acquire for $27 million in cash and stock J.P. Turner & Co., which in the past has focused on brokers that have highly transactional books of business. That means reps generate commission dollars through trading client accounts, not fees from long-term financial advice for clients.

The independent-broker-dealer industry has steadily moved away from the stock-jockey business model to representatives and advisers who generate fees from buying and holding investments or giving advice.

Based on the firm's history with the Financial Industry Regulatory Authority Inc., the Securities and Exchange Commission and the plaintiff's bar, the question is, if Mr. Schorsch is building a top-tier network of independent broker-dealers, why buy J.P. Turner?

Since June, Mr. Schorsch, through RCAP Holdings and RCS Capital Corp., has been on a buying binge. He has announced five such deals involving firms with 9,200 reps and advisers producing about $1.7 billion in annual fees and commissions. Once those deals are completed, the Schorsch network will rival industry giants LPL Financial and Ameriprise Financial Services Inc.

RCS Capital and Mr. Schorsch last Thursday scored their biggest, shiniest prize, announcing an agreement to acquire Cetera Financial Group Inc., with four broker-dealers and home to 6,600 advisers, for $1.15 billion in cash from Lightyear Capital.

A day later, RCS Capital said it agreed to buy J.P. Turner

J.P. Turner's reputation as a home to transactional brokers who run into trouble with regulators and clients is buttressed by recent actions by Finra and the SEC.

The Financial Industry Regulatory Authority Inc. in December ordered J.P Turner to pay more than $700,000 in restitution to clients who complained about unsuitable sales of leveraged and inverse exchange-traded funds and excessive mutual fund switching by one registered representative.

And the Securities and Exchange Commission in 2012 alleged that three former brokers at J.P. Turner churned client accounts and racked up more than three-quarters of a million dollars in commissions and fees for themselves and the brokerage. The brokers generated commissions, fees and margin interest totaling $845,000, while the customers lost $2.7 million, according to an SEC administrative complaint.

A review of! J.P. Turner's roster of about 370 registered reps and advisers reveals that scads once worked at GunnAllen Financial Inc., a notorious independent broker-dealer that collapsed in 2010 under the crushing weight of paying to fight investor complaints involving a rogue broker, Frank Bluestein, and $40 million in sales of a fraudulent private placement, Provident Royalties.

“I have brought at least a half-dozen investor claims against J.P. Turner since the crash,” said plaintiff's attorney Lars Soreide. Those claims have been based on allegations that a J.P. Turner broker used excessive margin in a client's account or churning an account, he said.

In one current Finra arbitration claim, the J.P. Turner broker lost $180,000 by trading stocks in the account of a woman in her 70s, while charging commissions of $170,000, Mr. Soreide said. “There's just a lot of claims out there where [J.P. Turner reps] are doing this to a lot of people,” he said.

J.P. Turner's recent character, however, appears to be more nuanced than these regulatory actions and investor claims, most of which are based on events that happened several years ago.

J.P. Turner has been cutting back on reps with “disclosure events” on the BrokerCheck reports. The firm said adios to nine such brokers recently, most of them at the end of last year, reducing the number of reps with such disclosures to 85. Those knocks on a broker's record can range from pending investor complaints about an unsuitable variable annuity sale to an IRS tax lien. Reducing the number of reps with such dings on their BrokerCheck reports looks like J.P. Turner is trying to clean up its image.

And many of these disclosure events on the 85 reps' BrokerCheck reports are from bygone eras in the securities business. Some are 10, 20 or 30 years old. Black Monday from 1987 and the tech stock crash of 2000 caught many investors, along with their brokers, on the wrong sides of trades. While a crash or sharp market correction does not! excuse a! rep's failed stock pick or strategy with a client, a spike in investor complaints against brokers invariably will accompany a market crash, particularly if the broker is a stock jockey.

Finally, J.P. Turner appears not to have a true “rogue rep” under its roof, and Finra is keeping its focus on such brokers. Last month, former broker to the stars Bambi Holzer agreed to a settlement with Finra that barred her from the securities industry. She had 72 disclosure events and a BrokerCheck report of 116 pages. No J.P. Turner reps' profile on the Finra database comes close to such an alarming history in the securities business.

J.P. Turner spokeswoman Heidi Wheatley said that the firm doesn't deserve the reputation that some in the industry believe it to have. The problems with churning and excessive trading are from several years ago, although regulators are just now getting around to leveling sanctions, she pointed out. The firm is “accountable to the investors,” Ms. Wheatley said. “We are supporting reps doing good business and always in the interest of their clients,” she said.

Mr. Schorsch said that J.P. Turner had been working diligently over the past few years to clean up its act, including hiring outside oversight and compliance consultants and jettisoning problematic brokers. None of the regulatory problems at J.P. Turner involved the sale of nontraded real estate investment trusts, the product that Mr. Schorsch's real estate company, American Realty Capital, has produced in the past. He noted that regulators also fined a number of big name firms in 2013.

In fact, J.P. Turner has become more productive. Its asset under management in 2013 were $4.3 billion, according to an RCS Capital investor presentation. That's an increase of 30% since 2011 when the firm had $3.3 billion in assets, according to InvestmentNews data. And that increase in assets comes with almost 200 fewer registered reps than the firm had in 2011.

“It's a fine firm that's growi! ng and gr! owing organically,” Mr. Schorsch said. “It's making the clients money. That's the thing we look for.”

Like Carrie Bradshaw shoe shopping in Chinatown, perhaps Mr. Schorsch has found a bargain with J.P. Turner.

17 “Triple A” Stocks to Buy

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

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

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

Aceto Corporation () is engaged in the sourcing, quality assurance, marketing, and distribution of pharmaceuticals and other chemical-based products in the health and crop production sectors. The price of ACET is up 3.6% since the first of the year. This is better than the Nasdaq, which has remained flat. .

American Equity Investment Life Holding Company () is a full service underwriter of fixed annuity and life insurance products through its wholly-owned life insurance subsidiaries. The stock has a trailing PE Ratio of 7.40. .

Anika Therapeutics, Inc. () develops, manufactures and commercializes therapeutic products for tissue protection, healing and repair. Since the start of the year, ANIK has increased 3.6%. .

Broadridge Financial Solutions, Inc. () provides investor communication, securities processing, and clearing and outsourcing solutions to the financial services industry. .

China Distance Education Holdings Ltd. Sponsored ADR () provides online and offline education services, and sells related products in the People's Republic of China. Shares of DL have climbed 11.5% since January 1. Trade volume rose notably over the past week, up 249.7%. .

Edwards Group Ltd. ADR () is an industrial technology company that manufactures and sells vacuum products and abatement systems. .

Phoenix New Media Ltd. Sponsored ADR Class A () provides content on an integrated platform across Internet, mobile, and TV channels in the People's Republic of China. FENG is 25.3% higher since the beginning of the year. .

Federal Signal Corporation () manufactures and supplies safety, signaling, and communications equipment. The stock’s trailing PE Ratio is 6.40. .

Huntington Ingalls Industries, Inc. () designs, builds, and maintains nuclear and non-nuclear ships for the United States Navy and Coast Guard. Shares of the stock have risen 9.4% since January 1. .

Par Pharmaceutical () develops, manufactures, and distributes generic and branded pharmaceuticals in the United States. .

Questcor Pharmaceuticals, Inc. () develops and commercializes novel central nervous system-focused therapeutics that address significant unmet medical needs. Stock prices have risen 11.3% since the first of the year. .

Qihoo 360 Technology Co., Ltd. ADR Class A () provides Internet and mobile security products in the People’s Republic of China. Shares of QIHU have climbed 13.3% since January 1. Trade volume has increased significantly over the past week, down 137.1%. .

SouFun Holdings Ltd. Sponsored ADR Class A () operates a real estate Internet portal, and a home furnishing and improvement Website in the People's Republic of China. Since January 1, SFUN has jumped 12%. .

Santarus, Inc. () is a specialty pharmaceutical company focused on acquiring, developing and commercializing proprietary products that address the needs of patients treated by gastroenterologists and other targeted physicians. .

Constellation Brands, Inc. Class A () is primarily a wine company that also markets other alcoholic beverages. Since the start of the year, STZ has soared 14.1%. The stock has a trailing PE Ratio of 8.50. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Murray Stahl's Horizon Kinetics on Sears Canada

It can take weeks or even months to qualify a security or sector for purchase in our portfolios. Recently, it required not so many days, perhaps a Horizon Kinetics record, and it couldn't have been done without the assistance of the press. This is the article that caught my eye some weeks ago. Note the decisive, emotive terminology. From the headline itself: "Sears Canada…In Bid to Survive", and from the 2nd sentence in its own standalone paragraph: "…lightens its ballast in a bid to stay afloat."

 

At the time, I was familiar with Sears Canada mainly in the context of its parent company Sears Holdings, rather than having evaluated it as a standalone investment. I did not have the impression that financial distress was one of the company's failings. Here is the analysis, which required very little in the way of special training—no 'deep dive' here, no databases or Excel spreadsheets. The October 29th article reported that the company agreed to surrender the leases at five of its full‐line department stores to the landlords, in exchange for which the company received a payment of $400 million. These are not stores that Sears owned, mind you; they were leased, which is usually shown on the balance sheet as an obligation. But these leases probably had decades before they expired, and apparently the landlords were willing to pay substantially to control those properties again. At the time, the entire stock market value of Sears Canada was only $1,450 million, so surrendering those five leases provided cash equal to over one‐quarter of the company's market value. Moreover, the company still had 111 additional full‐line stores remaining as well as over 300 smaller‐format stores and other assets.

 

Well, looking at some older articles, it seems that several months earlier Sears Canada had done the same thing: in June it agreed to vacate two stores, for which the landlords paid the company $191 million, and the landlords have an option to have the company vacate a third store within five years for an additional $53 million. And the prior year, the company did the same, receiving $170 million for vacating three stores. If you try this yourself, you'll see that this part of the analysis doesn't require much effort.

 

The above article suggested that Sears Canada was in financial trouble, so one must review the balance sheet. Here is what was on that balance sheet as of August 2013: net current assets: $559 million, of which cash was more than $300 million; debt: $46 million; and retirement liabilities: $415 million, and heading down. That's a rather liquid balance sheet if a company is not losing money. As to losing money, the company's operations were cash‐flow positive in the preceding year. This didn't take too much time either.

 

So, if the company agreed to vacate six stores for $644 million, how much might the rest be worth? The annual report provides information that the average size of the full‐line department stores is a bit over 128,800 square feet. In that case, the $644 million, for those 11 stores amounts to about $450 per square foot. Now some would say, and they're probably right, that these were among the best located, most valuable Sears Canada stores, and that the remaining 111 full‐line stores are worth far less.

 

Ok. Our investigations suggest that merely to construct a mall store costs well above $100 per square foot. If we assume that the remaining full‐line stores are worth only that much, then 111 stores x $100/sq ft x 128,800 sq ft/store = $3.03 billion, or $29.78 per share. That was over twice the market value of Sears Canada at the time. Nor does that calculation include the 300‐plus other properties. Nor does it include the top four full floors of the Toronto Easton Centre, the premier shopping center/office tower/hotel complex in Toronto, which the company did not vacate as part of the October transaction. Nor does it make allowance for development or redevelopment opportunities at certain locations, a major one of which is currently in process. This part of the analysis involved no Excel spreadsheet and no Bloomberg terminal. It did involve the equity yield curve—most investors are not as interested in value 2, 3, or 4 years from now as they are in what can be seen or reported in the here and now, and that disinterest can translate into very significant discounts. That is an intrinsic part of our portfolio construction process.

 

Source: Horizon Kinetics Market Commentary - 4th Quarter, 2013

Also check out: Murray Stahl Undervalued Stocks Murray Stahl Top Growth Companies Murray Stahl High Yield stocks, and Stocks that Murray Stahl keeps buying
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Top Dividend Companies For 2014

Shares of Ralph Lauren (RL) are all dressed up and they definitely have somewhere to go–up–after beating earnings forecasts today.

Associated Press

MarketWatch has the details:

For the period ended Sept. 28, Ralph Lauren reported a profit of $205 million, or $2.23 a share, down from $214 million, or $2.29 a share, a year earlier. Analysts recently expected $2.20…

The company raised the lower end of its estimated revenue range for the year by one percentage point and now projects an increase of 5% to 7%. For the current quarter, the company forecast revenue growth of 8% to 10%, in line with recent estimates of analysts polled by Thomson Reuters for an increase of 9%.

Ralph Lauren also unveiled a quarterly dividend increase of 13% to 45 cents a share.

Citigroup’s�Kate McShane likes what she sees:

Top Dividend Companies For 2014: Linear Technology Corporation(LLTC)

Linear Technology Corporation, together with its subsidiaries, designs, manufactures, and markets a line of linear integrated circuits. The company's products include amplifiers, comparators, voltage regulators, voltage references, monolithic filters, linear regulators, DC-DC converters, power over Ethernet controllers, battery chargers, data converters, communications interface circuits, RF signal conditioning circuits, Advisors' Opinion:

• [By Brendan Byrnes]

  Then finally, "Found It" Miracle Workers, companies that bounced around for a while -- kind of like wayward teenagers -- and then found their way. A company like Linear Technology (NASDAQ: LLTC  ) , for example, a semiconductor manufacturer, would fall into that category. It started out as a second source supplier for the USDOD [and] now makes a vast array of highly customized, very highly differentiated analog microprocessors.

• [By Lauren Pollock]

  Linear Technology Corp.'s(LLTC) fiscal second-quarter profit climbed 18% as the chip manufacturer reported higher sales and gross margins.

  MeadWestvaco Corp.(MWV) expanded its cost-cutting efforts and said it plans to simplify the structure of its packaging businesses, as it strives to improve its performance.

• [By Monica Gerson]

  Linear Technology (NASDAQ: LLTC) is projected to post its Q1 earnings at $0.46 per share on revenue of $339.26 million.

  Marten Transport (NASDAQ: MRTN) is estimated to post its Q3 earnings at $0.23 per share on revenue of $168.28 million.

• [By Damian Illia]

  Although the stock has done pretty well, investors can have another option of investing in the tech sector with Linear Technology Corporation (LLTC) because there is no other semiconductor company that can be able to match the company's profitability. Linear Technology offers thousands of analog products to original equipment manufacturers. The company麓s plan is to specialize in market segments that require high-performance analog with focus on industrial and automotive products. Customers base decisions on quality and Linear麓s chip are considered to be products that have long life and superior technology. This is considered in prices and makes attractive margins to the company.

Top Dividend Companies For 2014: United Parcel Service Inc.(UPS)

United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment engages in the time-definite delivery of letters, documents, and packages in the United States. The International Package segment offers air and ground delivery of small packages and letters to approximately 220 countries and territories, including shipments outside the United States, as well as shipments with either origin or distribution outside the United States; export services; and domestic services move shipments within a country?s borders. The Supply Chain & Freight segment provides forwarding and logistics services, such as supply chain design and management, freight distribution, customs brokerage, mail, and consulting services in approximately 195 countries and territorie s; and less-than-truckload and truckload services to customers in North America. In addition, the company offers various technology solutions for automated shipping, visibility, and billing; information technology systems and distribution facilities to various industries comprising healthcare, technology, and consumer/retail; and a portfolio of financial services that provides customers with short-term working capital, government guaranteed lending, global trade financing, credit cards, and export financing. It operates a fleet of approximately 99,800 package cars, vans, tractors, and motorcycles; an air fleet of 527 aircraft; and 33,800 containers used to transport cargo in its aircraft. The company was founded in 1907 and is headquartered in Atlanta, Georgia.

Advisors' Opinion:

• [By Kate Gibson]

  United Parcel Service Inc. (UPS) advanced 1.2% after the shipping company reported third-quarter earnings that topped estimates.

Top 5 Heal Care Companies To Buy For 2014: Altria Group(MO)

Altria Group, Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes, smokeless products, and wine in the United States and internationally. It offers cigarettes under the Marlboro, Virginia Slims, Parliament, Benson & Hedges, Basic, and L&M brands; smokeless tobacco products under the Copenhagen, Skoal, Red Seal, Husky brands, and Marlboro snus brands; and machine-made large cigars and pipe tobacco. The company also produces and sells blended table wines under the Chateau Ste Michelle and Columbia Crest names; and distributes Antinori and Villa Maria Estate wines and Champagne Nicolas Feuillatte in the United States. In addition, it maintains a portfolio of leveraged and direct finance leases in rail and surface transport, aircraft, electric power, real estate, and manufacturing. The company sells its tobacco products to wholesalers, including distributors; large retail organizations, such as chain stores; and the armed services. Altria Group, Inc. markets its wine products to restaurants, wholesale clubs, supermarkets, wine shops, and mass merchandisers. The company was founded in 1919 and is headquartered in Richmond, Virginia.

Advisors' Opinion:

• [By Selena Maranjian]

  Domestic tobacco giant Altria (NYSE: MO  ) gained 8% and yields 5%, despite facing challenges such as a shrinking smoker base in the U.S., more folks moving to discount cigarettes,�and rising taxes and regulations. The company is tackling the shrinking smoking base by moving into electronic cigarettes, which some expect to become a big market. Bulls may like its hefty free cash flow, but there are reasons to worry, too, such as also-hefty taxes.

• [By Dividend Growth Investor]

  Altria Group (MO) was able to spin-off its Kraft Foods division in 2007. Shareholders in Altria received shares in Kraft for each share of Altria stock they held. In 2008, this was followed by the spin-off of Phillip Morris International (PM), which represented the international tobacco business of Altria Group.

• [By Carolyn Bigda]

  Steve Halpern: Now, another Steady Eddie you have chosen is Altria (MO) and that company has raised its payout for 44 years. I know a lot of listeners might not like the idea of a cigarette company, but from a financial standpoint, this is about as close to a Steady Eddie as you could get. Could you tell us a little more about the company?

• [By Albert Alfonso]

  In terms of creating value for its shareholders, Altria (MO) has to be near the top of the list. Unlike some of its other domestic tobacco peers, Altria does offer some diversification, due to its large stake in SABMiller and other alcohol related holdings. Altria currently offers a $0.44 per share quarterly dividend. At current prices, Altria yields slightly under 5%.

Top Dividend Companies For 2014: Vivo Participacoes S.A.(VIV)

Telecomunicacoes de Sao Paulo S.A.-TELESP provides fixed-line telecommunications services to residential and commercial customers in the state of Sao Paulo, Brazil. Its services include local voice services, such as activation, monthly subscription, measured service, and public telephones; intraregional, interregional, and international long-distance voice services; data services comprising broadband services; pay TV services through direct to home satellite technology and land based wireless technology multichannel multipoint distribution service; and network services, such as interconnection and rental of facilities, as well as other services consisting of extended maintenance, caller identification, voice mail, cell phone blockers, computer support, and antivirus for Internet service subscribers. The company also offers multimedia communication services, such as audio, data, voice and other sounds, images, and texts and other information. In addition, it provides interc onnection services to cellular service providers and other fixed telecommunications companies through the use of its network. Further, the company offers telecommunications solutions and IT support designed to address the needs and requirements of companies operating various types of industries, including retail, manufacturing, services, financial institutions, and government. Telecomunicacoes de Sao Paulo S.A.-TELESP provides its products and services through person-to-person sales, telesales, indirect channels, Internet, and door-to-door sales. As of December 31, 2010, its telephone network included 11.3 million fixed lines in service, including residential, commercial, and public telephone lines; 3.3 million broadband clients; and 0.5 million pay TV clients. The company was founded in 1998 and is headquartered in Sao Paulo, Brazil. Telecomunicacoes de Sao Paulo S.A.-TELESP is a subsidiary of Telefonica S.A.

Advisors' Opinion:

• [By Sofia Horta e Costa]

  Vivendi (VIV) rose 2.7 percent to 17.15 euros. Music, pay-TV, European cinema and Internet in Brazil will make up a new media group based in France after the split with phone unit SFR, according to a statement yesterday.

• [By Dividend]

  Here are the top yielding stocks from the screening results:
  
  Telefonica Brasil (VIV) has a market capitalization of $25.08 billion. The company employs 19,614 people, generates revenue of $15.201 billion and has a net income of $1.994 billion. Telefonica Brasil�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.198 billion. The EBITDA margin is 34.20 percent (the operating margin is 21.26 percent and the net profit margin 13.12 percent).

Top Dividend Companies For 2014: Summit State Bank(SSBI)

Summit State Bank operates as a community bank in Sonoma, Napa, San Francisco, and Marin Counties in California. It offers deposit accounts, such as transaction accounts, money market accounts, savings accounts, time deposit accounts, business checking accounts, time certificates of deposit, sweep accounts, and specialized deposit accounts, including professional, small business packaged, and tiered accounts for larger deposits, and Keogh and IRA accounts. The company also provides commercial and industrial lines of credit and term loans, credit lines to individuals, equipment loans, real estate and construction loans, small business loans, and business lines of credit; consumer loans, including auto loans, mortgage loans, home improvement loans, and home equity lines of credit; and loans for accounts receivable and inventory financing, loans to agriculture-related businesses, and equipment and expansion financing programs. In addition, it offers banking by appointment, on line and telephone banking services, direct payroll and social security deposits, letters of credit, access to national automated teller machine networks, courier services, safe deposit boxes, night depository facilities, notary services, travelers? checks, lockbox, and banking by mail. Further, the company, through its subsidiary, Alto Service Corporation, provides deed of trust services. It serves small-to medium-sized businesses, professionals and professional associations, entrepreneurs, high net worth families, foundations, estates, and individual consumers. The company operated five offices in Santa Rosa, Petaluma, Rohnert Park, and Healdsburg. Summit State Bank was founded in 1982 and is headquartered in Santa Rosa, California.

Why Tesla Motors Inc. Stock Has Become Electrified Again

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

What: Shares of electric-car maker Tesla (NASDAQ: TSLA  ) are being driven higher following reports that it delivered 6,900 vehicles in the fourth quarter.

So what: The final tally of 6,900 deliveries represents 25% more than the third quarter and over 15% more than the amount Tesla guided for. In its third-quarter-earnings release, the company stated that it expects to deliver "slightly under 6,000" vehicles.

Now what: This announcement follows Tesla's trend of under-promising and over-delivering, in this case literally. An extra 900 vehicles priced around $100,000 each adds over $90 million in extra revenue for the company in the fourth quarter. 

With Tesla forecasting 25% gross profit margins, it's reasonable to expect at least an extra $22.5 million in gross profit, most (if not all) of which should find its way to the bottom line, potentially adding $0.18 per share.

Analysts forecast earnings per share of $0.15, so it is very possible that earnings may top this estimate by more than double.

Tesla last quarter guided for 21,500 total vehicles delivered for 2013, and the company plans for a production run of 40,000 vehicles by end of 2014. Now, the actual total for 2013 is 22,400, and the run rate for the fourth quarter should be 27,600, so it would seem that the target for 40,000 deliveries in 2014 is off to a good start, especially considering that it isn't until the second quarter of 2014 that Tesla expects the larger boost from production capacity.

Look for analysts to upgrade their estimates, and for Tesla to offer even higher estimates, for the first quarter of 2014 and the full year. While even $0.30 earnings per share for the fourth quarter would still suggest that Tesla is richly valued, both the top and bottom lines stand a chance of accelerating, and it could be only a matter of time before earnings begin to catch up with valuation. Tesla may not be for everybody on the long side, but cautious Fools should avoid betting against Tesla.

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Swift Transportation's Earnings Beat Last Year's by 25%

Swift Transportation (NYSE: SWFT  ) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Swift Transportation met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share grew significantly.

Margins expanded across the board.

Revenue details
Swift Transportation recorded revenue of $898.1 million. The 15 analysts polled by S&P Capital IQ wanted to see revenue of $906.5 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.30. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.27 per share. GAAP EPS of $0.30 for Q2 were 25% higher than the prior-year quarter's $0.24 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 21.1%, 50 basis points better than the prior-year quarter. Operating margin was 9.8%, 30 basis points better than the prior-year quarter. Net margin was 4.8%, 90 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $930.3 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $3.67 billion. The average EPS estimate is $1.10.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 33 members out of 34 rating the stock outperform, and one members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Swift Transportation a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Swift Transportation is outperform, with an average price target of $18.41.

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Add Swift Transportation to My Watchlist.

Occidental Petroleum

The energy sector has a history of strong performance late in bull markets, coupled with defensiveness early in bear markets; it is from this sector that we chose our top conservative idea for the coming year, notes Eric Vermulm in InvesTech Market Analyst.

Occidental Petroleum (OXY) is a growing energy company focused on stable geographic areas, with a production mix tilted toward oil. For 2013, over 60% of production has come from wells in the attractive geopolitical climate of North America.

At the same time, 73% of production has come in the form of "liquids" (oil and natural gas liquids), leaving the more volatile natural gas segment as the company's smallest, at only 27% of the total. With exposure to growing oil rich plays, such as the Permian Basin in West Texas, OXY is forecasting a healthy 5-8% annual production growth rate for the foreseeable future.

In terms of financial strength, OXY boasts one of the strongest balance sheets in the industry. Net debt to capital is a very manageable 8%, significantly less than peers, which average 25% debt to capital.

With such a strong financial position, OXY's management has been able to raise the annual dividend by an average 17% over the past five years. As a result, OXY now yields 2.7%, which is well above median, and high enough that it should provide some downside protection in a bear market.

Occidental's management is currently considering "value enhancing" restructuring options. The process is ongoing, but some indications are that the company may spin-off of its California assets.

We like OXY for its superior profitability and financial strength, while having management look for more shareholder value, is an added benefit. With a shareholder focused management team and a 2.7% dividend yield, Occidental Petroleum looks attractive at eight times cash flow.

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Ensco PLC

For his top conservative stock pick for the coming year, J. Royden Ward, Chief Analyst of Cabot Benjamin Graham Value Investor, looks to a leading offshore oil and natural gas drilling company.

Ensco PLC (ESV) owns and operates shallow water and ultra-deepwater rigs, located in many parts of the world.

Two new drilling rigs are ready to begin multi-year contracts with major international oil companies. Six more rigs are under construction.

In addition, Ensco is spending heavily on standardizing and modernizing its drilling fleet, which will help the company maintain its advantage over competitors.

Demand for Ensco's drilling rigs is solid, and will likely strengthen further during the next several years. Sales will rise 15% in 2014, and EPS will climb 17% to 7.20.

Ensco has been named Number One in total customer satisfaction for the third consecutive year. The low current P/E (price to 2013 earnings) ratio of 8.9 and the high dividend yield of 5.5% are very attractive.

ESV shares are currently selling right at book value. I expect Ensco PLC to reach my Minimum Sell Price target of $88.49 within one year.

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Sonoco Hikes Paperboard Prices

Hartsville, S.C.-based Sonoco Products (NYSE: SON  ) is hiking prices on its signature product: cardboard.

On Friday, Sonoco announced an across-the-board price hike on "all grades of uncoated recycled paperboard (URB) products by $40 per ton, effective with shipments in the United States and Canada beginning July 8, 2013." The company's Primary Materials Group, North America, Vice President Marty Pignone explained that "the price increase is necessary to recover rising recovered paper and other raw materials costs."

Best Growth Stocks To Invest In Right Now

Posted prices for old corrugated containers (used cardboard boxes) are said to be up 60% over the past nine months, and some of this recyclable material is selling above even these higher posted prices. Demand for the raw material, as you can imagine, is strong.

Despite the reported cost increases, however, Sonoco's gross margins have held up well over the past three quarters, averaging 50 basis points better (17.5%) than what the company earned in the previous three quarters (17%).