Wednesday, December 11, 2013

Best Companies To Own For 2014

The Department of Defense issued just over $1.5 billion worth of new contracts Monday. A little more than $600 million of this amount was for bulk orders of fuel, placed with small, privately held companies. The single largest award of all, though, for $679.8 million, went to pay for work on the Navy Marine Corps Intranet -- and Hewlett-Packard (NYSE: HPQ  ) won it.

Monday's award -- a modification to a previously awarded continuity of services contract -- increases the total value of the underlying contract to $5.6 billion and contains an option to extend the contract by a further two months, through June 2014. Through this contract, H-P is hired to ensure that Navy Marine Corps Intranet continues to function and connect 2,500 Navy and Marine Corps locations worldwide, until a Next Generation Enterprise Network is up and running, "satisfactorily providing the replacement services."

This contract includes three primary endpoints, with H-P's continuity of services work running through April 2014 (or June 2014, with the optional extension), "asset usage services" running through December 2014, and hardware purchases running through July 2015.

Best Companies To Own For 2014: The Dixie Group Inc.(DXYN)

The Dixie Group, Inc. engages in the manufacture, marketing, and sale of carpets and rugs to residential and commercial customers primarily in the United States. It also offers broadloom and modular carpets for the specified commercial marketplace. The company sells its products under the Fabrica International, Masland Carpets, and the Dixie Home brands. It also processes yarns, and provides carpet dyeing and finishing services to other carpet manufacturers. The company primarily serves interior decorators and designers, selected retailers and furniture stores, luxury home builders, and manufacturers of luxury motor coaches and yachts. The Dixie Group, Inc. was founded in 1920 and is based in Chattanooga, Tennessee.

Advisors' Opinion:
  • [By Roberto Pedone]

    Dixie Group (DXYN) markets, manufactures and sells carpet and rugs to high-end residential and commercial customers through its various sales forces and brands. This stock closed up 10.9% at $11.48 in Thursday's trading session.

    Thursday's Volume: 218,000

    Three-Month Average Volume: 82,425

    Volume % Change: 198%

    From a technical perspective, DXYN ripped sharply higher here right above some near-term support around $10 with strong upside volume. This stock has been trending sideways inside of a consolidation pattern for the last month, with shares trending between $10 on the downside and $12.05 on the upside. This consolidation pattern is occurring after a strong uptrend for shares of DXYN, which took the stock from $4.99 in March to $10 in August. This spike is now starting to push shares of DXYN within range of triggering a big breakout trade. That trade will hit if DXYN manages to take out Thursday's intraday high at $11.99 and then once it clears its 52-week high at $12.05 with high volume.

    Traders should now look for long-biased trades in DXYN as long as it's trending above $11 or Thursday's low of $10.43, and then once it sustains a move or close above those breakout levels with volume that hits near or above 82,425 shares. If that breakout triggers soon, then DXYN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $16.

  • [By David Goodboy]

    The company I discovered astounded me: It's up more than 220% in the past year, and shares are trading for around $11. It is high-end carpet maker The Dixie Group (Nasdaq: DXYN). Founded in 1919, this carpet manufacturer and marketing company has a market cap of about $143 million and annual revenue of just over $296 million. It sells carpets with the Fabrica International, Masland Residential and Dixie Home brands. 

Best Companies To Own For 2014: Western Asset/Claymore U.S. Treasury Inflation Prot Secs Fd(WIA)

Western Asset/Claymore Inflation-Linked Securities & Income Fund is a closed ended fixed income mutual fund launched and managed by Western Asset Management Company. It invests in fixed income markets. The fund invests primarily in U.S. treasury inflation protected securities. It also invests in corporate bonds or other securities and instruments. The fund?s portfolio of investments includes investments in electrical, energy, environmental services, media, medical care facilities, oil and gas, paper and forest products, photo equipment and supplies, banking and finance, and food, beverage and tobacco sectors. Western Asset/Claymore Inflation-Linked Securities & Income Fund was formed on September 25, 2003 and is domiciled in United States.

Top 10 Biotech Stocks To Own Right Now: Innovotech Inc. (IOT.V)

Innovotech Inc. provides solutions to medical, veterinary, agricultural, and industrial problems caused by microbial biofilms. Its core technologies include the MBEC Assay, a throughput screening system for the testing of biofilms in the laboratory; and the BEST Assay, which is used as a tool to test antimicrobial coatings on surfaces for the prevention of attachment of microorganisms. The company engages in development and commercialization of three products, including InnovoSCEPT human and veterinary antimicrobial susceptibility diagnostic tests to determine the antibiotic treatment for infections in humans and animals; InnovoSIL, a silver-based antimicrobial coating for medical devices; Agress/AgreGuard seed treatments and plant sprays, which are designed to protect the crops against bacterial and fungal infections. The company also develops bioFILM PA antimicrobial susceptibility kit that assists physicians in the selection of antibiotics to treat infections caused by Pseudomonas aeruginosa biofilms. In addition, the company provides contract research services. Innovotech Inc. is headquartered in Edmonton, Canada.

Best Companies To Own For 2014: Lorillard Inc(LO)

Lorillard, Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes in the United States. The company offers 43 different product offerings under the Newport, Kent, True, Maverick, and Old Gold brand names. Lorillard, Inc. sells its products primarily to wholesale distributors, who in turn service retail outlets, chain store organizations, and government agencies, including the United States? Armed Forces. The company was founded in 1760 and is headquartered in Greensboro, North Carolina.

Advisors' Opinion:
  • [By Maxx Chatsko]

    However, you would be hard-pressed to find any connection between falling smoking prevalence and share performance at Reynolds American (NYSE: RAI  ) , Lorriland (NYSE: LO  ) , Phillip Morris (NYSE: PM  ) , and Altria (NYSE: MO  ) . These companies are some of the best performers in the past decade. In fact, Altria is the best-performing stock of the last half-century!

Best Companies To Own For 2014: South American Iron & Steel Corporation Ltd (SAY.AX)

South American Iron & Steel Corporation Limited, together with its subsidiaries, engages in the exploration and development of mineral properties for iron sands in South America. The company primarily holds interest in three iron sands projects, including Put煤, Maullin, and Aguas Claras projects located in Chile. It also has interests of gold, copper, lead/zinc, and antimony concessions in Yunnan Province, China. South American Iron & Steel Corporation Limited is headquartered in Sydney, Australia.

Best Companies To Own For 2014: PRGX Global Inc.(PRGX)

PRGX Global, Inc., together with its subsidiaries, provides recovery audit, healthcare claims recovery audit, and analytics and advisory services. The company?s recovery audit services are based on the mining and auditing of clients? purchasing data for overpayments to suppliers; and healthcare claims recovery audit services consist of identification of overpayments and underpayments made to healthcare providers, such as hospitals and physicians? practices. Its analytics and advisory services focuses on client functional and process areas and provides services to senior finance executives to optimize working capital, reduce enterprise costs, transform the finance function, and enhance corporate performance. The company serves retailers, such as discount, department, specialty, grocery, and drug stores; business enterprises, including manufacturers, financial services firms, and pharmaceutical companies; private sector health insurance companies, and state and federal go vernment payers consisting of the centers for Medicare and Medicaid Services; and federal and state government agencies. It has operations in the United States, Canada, rest of Latin America, Europe, Asia, and rest of the Pacific region. The company was formerly known as PRG-Schultz International, Inc. and changed its name to PRGX Global, Inc. in January 2010. PRGX Global, Inc. was founded in 1990 and is based in Atlanta, Georgia.

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 PRGX Global (Nasdaq: PRGX  ) , whose recent revenue and earnings are plotted below.

Best Companies To Own For 2014: LM Ericsson Telephone Company(ERIC)

LM Ericsson Telephone Company provides communications equipment, professional services, and multimedia solutions to mobile and fixed networks operators worldwide. The Networks segment delivers radio access solutions that interconnect with devices, such as mobile phones, notebooks, and PCs; fixed access solutions for fiber and copper; and IP core network solutions, including softswitches, IP infrastructure for edge- and core routing, IP multimedia subsystem, and media gateways. This segment also offers transmission/backhaul; and microwave and optical transmission solutions for mobile and fixed networks, as well as offers network management tools for configuration, performance monitoring, security management, inventory management, and software upgrades. The Global Services segment delivers managed services comprising network design and planning, network operations, field operations and site maintenance, and shared solutions, as well as consulting and systems integration, cus tomer support, and network rollout services. The Multimedia segment provides IPTV solutions, video compression, on-demand solutions, content management systems, advertising, and interactive TV applications for operators, service providers, advertisers, and content providers; and business support systems, including revenue management, customer care, provisioning, device management, and analytics. This segment also offers service delivery platforms, communication suite, messaging, social media portal, and location-based services for consumers; and business communication solutions, such as business communication suite and brokering solutions that facilitate payment and distribution of content. The Sony Ericsson segment offers mobile phones, accessories, content, and applications. The ST-Ericsson segment develops and sells semiconductors and wireless platforms to handset manufacturers, mobile operators, and device manufacturers. The company was founded in 1876 and is headquarter ed in Stockholm, Sweden.

Advisors' Opinion:
  • [By Abu Bakr Hussain]

    NSN is a joint venture with Siemens (SI) in the field of telecoms infrastructure. Its chief competitors are the likes of Alcatel-Lucent (ALU), Ericsson (ERIC) and yes, Huawei. As the latter is a rather opaquely-owned Chinese company, we cannot use it to help create a valuation for NSN. However, I believe using the first two companies mentioned is sufficient to give us a decent indication of NSN's true value.

  • [By Paul Ausick]

    Smartphones accounted for about 55% of all new devices sold globally in the third quarter of 2013, and broadband subscriptions grew at a rate of 40% in the last 12 months. The data was released Monday by Ericsson (NASDAQ: ERIC) in the November edition of its Mobility Report.

  • [By John Udovich]

    Mid cap telco equipment stock Alcatel Lucent SA (NYSE: ALU) is up 205.9% since the start of the year for a much better performance�verses peers or benchmarks like Ericsson (NASDAQ: ERIC) or the iShares North American Tech-Multimedia Networking ETF (NYSEARCA: IGN)���meaning its probably worth taking a closer look at the stock as its been producing plenty of good news for a change.�I should note that we have recently added�Alcatel Lucent SA to our SmallCap Network Elite Opportunity (SCN EO) portfolio as a�technical based trade because we think shares will continue higher on speculation�about an�improved global footprint�for this leading mobile data network provider.

Best Companies To Own For 2014: Banco Bradesco SA (BBD)

Banco Bradesco S.A. (the Bank), incorporated on November 5, 1943, is commercial bank. The Bank offers a range of banking and financial products and services in Brazil and abroad to individuals, large, midsized and small companies and local and international corporations and institutions. It operates in two segments: the banking, and the insurance, pension and capitalization bonds. Its products and services encompass banking operations, such as loans and advances and deposittaking, credit card issuance, purchasing consortiums, insurance, leasing, payment collection and processing, pension plans, asset management and brokerage services. The main services it offers through Bradesco Expresso are receipt and submission of account applications; receipt and submission of account applications; Social Security National Service (INSS) benefit payments; checking and savings account deposits, and receipt of consumption bills, bank charges and taxes. In May, 2011, the Bank acquired Banco do Estado do Rio de Janeiro S.A. (BERJ).

Banking

The Banking segment includes deposit-taking with clients, including checking accounts, savings accounts and time deposits; loans and advances (individuals and companies, real estate financing, microcredit, onlending BNDES funds, rural credit, leasing, among others); credit cards, debit cards and pre-paid cards; management of receipts and payments; asset management; services related to capital markets and investment banking activities; intermediation and trading services; custody, depositary and controllership services; international banking services, and purchasing consortiums.

The Bank offers a variety of deposit products and services to our customers through its branches, including Non-interest bearing checking accounts, such as Easy Account, Click Account, Academic Account and Cell Phone Bonus Account; traditional savings accounts; time deposits, and deposits from financial institutions. As of December 31, 2011, it had 43.4 million savings a! ccounts. It offers its customers certain additional services, such as identified deposits and real-time banking transfers. Its loans and advances to customers, consumer credit, corporate and agricultural-sector loans, totaled R$263.5 billion as of December 31, 2011.

The Bank�� loan portfolio consists of short-term loans, vehicle financings and overdraft loans on checking accounts. It also provides revolving credit facilities and traditional term loans. As of December 31, 2011, it had outstanding advances, vehicle financings, consumer loans and revolving credit totaling R$58.0 billion, or 22.0% of its portfolio of loans and advances. Banco Bradesco Financiamentos (Bradesco Financiamentos) offers direct-to-consumer credit and leasing for the acquisition of vehicles and payroll-deductible loans to the public and private sectors 'in Brazil. Supported by BF Promotora de Vendas Ltda. (BF Promotora), and using the Bradesco Financiamentos brand, the Bank operates through its network of correspondents in Brazil, consisting of retailers and dealers selling light vehicles, trucks and motorcycles, to offer financing and/or leasing for vehicles. Through Bradesco Promotora brand, it offer payroll-deductible loans to social security retirees and pensioners, public-sector employees, military personnel and private-sector companies sponsoring plans, and other aggregated products (insurance, capitalization bonds, cards, purchasing consortiums, and others).

As of December 31, 2011, the Bank had 63,156 outstanding real estate loans. As of December 31, 2011, the aggregate outstanding amount of its real estate loans amounted to R$15.9 billion, representing 6% of its portfolio of loans and advances. As of December 31, 2011, it had 69,491 microcredit loans outstanding, totaling R$62.8 million. Its BNDES onlending portfolio totaled R$35.4 billion as of December 31, 2011.

The Bank provides traditional loans for the ongoing needs of its corporate customers. It had R$85.8 billion of outstand! ing other! local commercial loans, accounting for 32.5% of its portfolio of loans and advances as of December 31, 2011. It offers a range of loans to its Brazilian corporate customers, including short-term loans of 29 days or less; guaranteed checking accounts and corporate overdraft loans; discounting trade receivables, promissory notes, checks, credit card and supplier receivables, and a number of other receivables; financing for purchase and sale of goods and services; corporate real estate financing, and investment lines for acquisition of assets and machinery. As of December 31, 2011, the Bank had R$11 billion in outstanding rural loans, representing 4.2% of its portfolio of loans and advances. The Bank conducts its leasing operations through its primary leasing subsidiary, Bradesco Leasing and also through Bradesco Financiamentos.

The Bank offers electronic solutions for receipt and payment management solutions, which include collection and payment services and online resource management enabling its customers to pay suppliers, salaries, and taxes and other levies to governmental or public entities. The global cash management concept provides solutions for multinationals in Brazil and/or domestic companies operating abroad. It manages third-party assets through mutual funds; individual and corporate investment portfolios; pension funds, including assets guaranteeing the technical provisions of Bradesco Vida e Previdencia, and insurance companies, including assets guaranteeing the technical provisions of Bradesco Seguros.

The Bank�� subsidiaries Bradesco S.A. CTVM and Agora S.A. CTVM (or Bradesco Corretora and Agora Corretora, respectively) trade stocks, options, stock lending, public offerings and forwards. They also offer a range of products, such as Brazilian government securities (under the Tesouro Direto program), BM&F trading, investor clubs and investment funds.

The Bank offers a range of international services, such as foreign exchange transactions, foreign tr! ade finan! ce, lines of credit and banking. As of December 31, 2011, its international banking services included New York City, a branch and Bradesco Securities Inc., its subsidiary brokerage firm, or Bradesco Securities United States, and its subsidiary Bradesco North America LLC, or Bradesco North America; London, Bradesco Securities U.K., its subsidiary, or Bradesco Securities U.K.; Cayman Islands, two Bradesco branches and its subsidiary, Cidade Capital Markets Ltd., or Cidade Capital Markets; Argentina, Banco Bradesco Argentina S.A., its subsidiary, or Bradesco Argentina; Banco Bradesco Luxemburgo S.A. its subsidiary, or Bradesco Europe; Japan, Bradesco Services Co. Ltd., its subsidiary, or Bradesco Services Japan; in Hong Kong, its subsidiary Bradesco Trade Services Ltd, or Bradesco Trade, and in Mexico, its subsidiary Ibi Services, Sociedad de Responsabilidad Limitada, or Ibi Mexico.

The Bank�� Brazilian foreign-trade related business consists of export and import finance. In addition to import and export finance, its customers have access to a range of services and foreign exchange products, such as purchasing and selling travelers checks and foreign currency paper money; cross border money transfers; advance payment for exports; accounts abroad in foreign currency; cash holding in other countries; collecting import and export receivables; repaid cards with foreign currency (individual), and structured foreign currency transactions through its foreign units.

Insurance, pension plans and capitalization bonds

The Bank offers insurance products through a number of different entities, which it refers to collectively as Grupo Bradesco Seguros. It offers life, personal accident and random events insurance through its subsidiary Bradesco Vida e Previdencia. It offers health insurance policies through Bradesco Saude and its subsidiaries for small, medium or large companies. It provides automobile, property/casualty and liability products through its subsidiary Bradesco Auto! /RE. It a! lso offers certain automobile, health, and property/casualty insurance products directly through its Website.

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