Monday, March 31, 2014

Ask Matt: Hot IPOS on the horizon

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.

Q: What are some of the biggest IPOs in the pipeline?

A: Investors are looking for a little something new for their portfolios again. And with the IPO pipeline filling up, investors will have plenty of choice.

Perhaps the biggest deal for investors to look forward to is the initial public offering of Chinese Internet company Alibaba. The company, which is a blend of eBay, Amazon and Google, is likely to raise more than $15 billion from its IPO, Reuters estimates. The deal would value the company at upwards of $140 billion. Given the strong performance of other Chinese Internet companies this year, investors will likely be eager to get a piece of Alibaba.

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Another hotly anticipated IPO is another Chinese deal: Weibo. The company runs an online global system that allows Chinese-speaking users to share information with each other. Weibo filed its plans to go public in March 14, and is expected to generate proceeds of $500 million, says IPOScoop.com.

Another large IPO in the pipeline is Phibro Animal Health, a company that makes products for animal nutrition. The company filed its plans to go public in March 2014. The deal is expected to generate proceeds of $230 million or more. Reportedly, Internet Web site operator GoDaddy is also looking at a deal.

There will be others. Due to changes in the way companies can file their IPO plans privately with regulators, there may be other deals in the works investors will find out about later.

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Sunday, March 30, 2014

3 New Ways Getting Married Can Raise Your Taxes

One peculiar aspect of American tax law is that getting married can dramatically affect a couple's total tax bill. Many couples, especially those in which one person earns the vast majority of the couple's income, benefit from the tax treatment on married couples. But many others, especially two-income families where each spouse's earnings are roughly equivalent, can end up paying a whole lot more in tax -- a phenomenon known as the marriage penalty.

The tax compromise that lawmakers agreed to at the beginning of 2013 made several substantial changes to the tax laws, and a few of those changes actually made the marriage penalty worse for some couples, especially high-income couples where both spouses work and have considerable income. Let's look at these three provisions and how much they'll boost the marriage penalty's impact in 2013 and beyond.

Best Sliver Stocks To Buy For 2014

1. The new Obamacare tax.
Obamacare created two new taxes: a 0.9% tax on wages and other earned income for high-income earners, and a 3.8% tax on investment income. For both taxes, the threshold is $200,000 for single filers and $250,000 for married couples.

So if two single people each earned $200,000, they wouldn't be subject to the Obamacare tax at all. But if they got married, then $150,000 of their total income of $400,000 would get taxed, with an additional tax liability of $1,350. Similar situations with investment income could lead to a much larger marriage penalty, as the investment tax rate is more than quadruple the rate for wages. Investors in dividend-oriented ETFs Vanguard High Dividend Yield (NYSEMKT: VYM  ) , SPDR S&P Dividend (NYSEMKT: SDY  ) , and iShares DJ Select Dividend (NYSEMKT: DVY  ) should therefore take care to consider tax-favored investment vehicles for their investments.

2. New high-income tax brackets.
The marriage penalty has existed in tax brackets for a long time. The bottom two tax brackets don't include a marriage penalty, as they're designed so that the amount of income married couples can earn is exactly twice what singles can earn to stay within a given bracket. But for the 25% tax brackets and above, the married brackets kick in at far less than twice the single amounts, with the 35% bracket kicking in at exactly the same amount for singles and couples.

The tax compromise created a new 39.6% bracket that kicks in for high-income taxpayers. The way the law was drafted, that 39.6% rate applies to single filers making more than $400,000 and joint filers with income above $450,000. What that means is that if two unmarried people each make $400,000, they won't be subject to the new provision, with taxes topping out at 35%. But if those two people get married, then an additional $350,000 in income will get taxed at the higher rate. In this example, a couple would pay more than $16,000 in additional taxes solely because of the marriage penalty in the tax brackets.

Similar provisions affect capital gains tax rates, with a higher 20% maximum rate applying above the income threshold compared with 15% below it. With the S&P 500 (SNPINDEX: ^GSPC  ) having set record highs during the past week, capital gains could be substantial for those selling off or rebalancing holdings in their portfolios.

3. Reductions in itemized deductions and personal exemptions.
The tax compromise brings back provisions that reduce the amount that high-income taxpayers can deduct for personal exemption allowances and on itemized deductions. Again, the thresholds at which these provisions kick in include a marriage penalty, with singles above $250,000 of adjusted gross income and couples over $300,000 not being able to reduce their taxable income by the full amount of their exemptions and deductions.

Here, the impact of the marriage penalty could mean that every penny of personal exemptions is taken away, even if none of them would be removed if the couple remained unmarried. Similarly, reductions in itemized deductions could increase their tax bill by more than $2,375 at top rates.

Why a marriage penalty?
The policy reason put forth for allowing a marriage penalty tends to be that couples can live more cheaply than singles. But with no rules preventing unmarried taxpayers from living together and reaping the same living-cost savings, it'll be interesting to see how many couples choose not to tie the knot in order to save on their tax bills going forward.

Saving for retirement is a key element of minimizing taxes and providing for your financial future. The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Best Penny Companies To Own In Right Now

Best Penny Companies To Own In Right Now: Telular Corporation(WRLS)

Telular Corporation designs, develops, and distributes products and services that utilize wireless networks to provide data and voice connectivity among people and machines primarily in the United States and internationally. It provides machine-to-machine and event monitoring services, including Telguard that comprises a specialized terminal unit, which interfaces with commercial security control panels and communicates with event processing servers to provide real-time transport of alarm signals from residential and commercial locations to an alarm company?s central monitoring station; and TankLink solution that combines a cellular communicator, wireless data services, and a Web-based application into a single offering, which allows end-users to monitor the product level in a given tank vessel. The company also offers fixed cellular terminals for voice, fax, and Internet access over the wireless networks. It sells its products to security equipment distributors, cellular carriers, and value added resellers. The company was founded in 1986 and is headquartered in Chicago, Illinois.

Advisors' Opinion:
  • [By Eric Volkman]

    Telular (NASDAQ: WRLS  ) will most likely soon be an asset belonging to another company. It has entered into an agreement to be bought by private equity firm Avista Capital Partners for total consideration of $253 million. This consists of $12.61 per share in cash and roughly $18.5 million in assumed debt.

  • source from Top Stocks Blog:http://www.topstocksblog.com/best-penny-companies-to-own-in-right-now.html

Saturday, March 29, 2014

Top 10 Information Technology Companies For 2014

With shares of Boeing (NYSE:BA) trading around $139, is BA an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework.

T = Trends for a Stock’s Movement

Boeing is an aerospace company. It focuses primarily on engineering, information technology, research and development, test and evaluation, technology strategy development, environmental remediation management, and intellectual property management. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital Corp.

A Boeing 787 Dreamliner undergoing maintenance in Tokyo emitted smoke that may have come from one of the jet�� batteries, the units that were redesigned last year after two meltdowns triggered a global grounding.�The cause is under investigation, and Japan Airlines Co. will share details with Japan�� transportation ministry and Boeing, said Seiji Takaramoto, a spokesman for the Tokyo-based carrier. The jet was being prepared for a flight to Bangkok, and another 787 was put in service for that trip, he said.�A safety valve on one of eight battery cells was found to have opened and dispersed liquid inside the plane�� main battery container yesterday at Narita airport, Takaramoto said. The other seven cells were intact.

Top 10 Information Technology Companies For 2014: Great American Group Inc (GAMR)

Great American Group, Inc. (Great American), incorporated on May 7, 2009, is a provider of asset disposition and valuation and appraisal services to a range of retail, wholesale and industrial customers, as well as lenders, capital providers, private equity investors and professional service firms. The Company operates its business in two segments: liquidation and auction solutions and valuation and appraisal services. Its liquidation and auction divisions assist customers in the disposition of assets. Such assets include multi-location retail inventory, wholesale inventory, trade fixtures, machinery and equipment, intellectual property and real property. Great American�� valuation and appraisal services division provides its clients with independent appraisals in connection with asset-based loans, acquisitions, divestitures and other business needs. Its valuation and appraisal services division provides valuation and appraisal services to financial institutions, lenders, private equity investors and other providers of capital. These services primarily include the valuation of assets for purposes of determining and monitoring the value of collateral securing financial transactions and loan arrangements, and in connection with potential business combinations. In October 2009, Great American formed a subsidiary, GA Capital, LLC (GA Capital).

Auction and Liquidation Solutions

The Company enables its clients to dispose of under-performing assets and generate cash from excess inventory by conducting or assisting in store closings, going out of business sales, bankruptcy sales and fixture sales. It also provides merger and acquisition due diligence, through the Company�� auction and liquidation segment and reverse logistics and appraisal services, through its valuation and appraisal services segment. It provides retail auction and liquidation services on a fee and guarantee basis. In guarantee retail liquidation engagements, it takes title to any unsold inventory. The Company ! designs and implements disposition programs for its customers seeking to convert excess wholesale and industrial inventory and operational assets into capital. Assets in an orderly liquidation are available for sale on a privately negotiated basis over a period of months. This sale method is often employed to dispose of furniture, fixtures and equipment in connection with retail liquidations, as well as wholesale inventory or industrial equipment. The Company�� live auctions can cover single sites or multiple locations, and the Company utilizes point-of-sale software to generate customized sales reports and invoices and to track assets. The Company webcasts its live auctions over the Internet. This auction format allows online bidders to compete in real time against bidders at the live auction. Bidders can log onto the auction from personal computers, view and bid on lots as they come up for sale, hear the auctioneers as the sale is being conducted and, in some cases, view live streaming video of the auctioneer calling the bids on-site. In the online auction format, the sale of assets takes place online, without a live auctioneer calling the sale.

The Company provides advisory services relating to the wind down process from beginning to end, including negotiation of early lease terminations, sale of intellectual property and sale of completed inventory through the client�� historical distribution channels. It assists clients with managing the disposition of customer returns, obsolete inventory, extraneous fixtures and dated equipment. The Company serves as a broker, providing assistance in reaching target markets and potential buyers or marketing to its database of buyers and end users. The Company performs sealed bid sales in situations where asset disposition requires anonymity of the buyer or seller or involves other confidentiality concerns. In this process, potential buyers submit bids without knowledge of the amount bid by other participants. It also provides wholesale and industr! ial servi! ces on a fee, guarantee and an outright purchase basis. The Company commenced auctions for foreclosed residential real estate properties, through its joint venture with Kelly Capital during the year ended December 31, 2009. The Company coordinates the auction process, including the venue, personnel and onsite technological requirements. It also arranges for financial institutions, title and escrow companies to be onsite at the auction to provide onsite services to potential buyers. The Company provides its home auction services on a fee basis based on a percentage of sale prices and on an outright purchase basis.

Valuation and Appraisal Services

Great American�� valuation and appraisal teams provide independent appraisals to financial institutions, lenders and other providers of capital and other professional service firms for estimated liquidation values of assets. These teams include experts specializing in particular industry and asset classes. The Company provides valuation and appraisal services across five categories: Consumer and Retail Inventory, representative types of appraisals and valuations include inventory of specialty apparel retailers, department stores, jewelry retailers, sporting goods retailers, mass and discount merchants, home furnishing retailers and footwear retailers; Wholesale and Industrial Inventory, representative types of appraisals and valuations include inventory held by manufacturers or distributors of automotive parts, chemicals, food and beverage products, wine and spirits, building and construction products, industrial products, metals, paper and packaging; Machinery and Equipment, representative types of asset appraisals and valuations include a range of equipment utilized in manufacturing, construction, transportation and healthcare; Intangible Assets, representative types of asset appraisals and valuations include intellectual property, goodwill, brands, logos, trademarks and customer lists, and Real Estate, representative types of ass! et apprai! sals and valuations include owned and leased manufacturing and distribution facilities, retail locations and corporate offices.

The Company competes with overstock.com and eBay.

Advisors' Opinion:
  • [By CRWE]

    Today, GAMR surged (+8.57%) up +0.030 at $.380 with 10,000 shares in play thus far (ref. google finance Delayed: 10:28AM EDT July 12, 2013).

    Great American Group, Inc. has been selected to handle store closing sales at eight Orchard Supply Hardware locations, offering significant product discounts in the Citrus Heights, Fairfield, Huntington Beach, Lone Tree, Long Beach, Midtown, Newark and Vacaville stores

    Orchard previously reported on June 17, 2013, that it had reached an agreement through which Lowe�� Companies, Inc. will acquire the majority of its assets but will allow Orchard to continue day-to-day operations as a separate, standalone business with its brand, strategy and management team intact. To facilitate the acquisition agreement and restructure its balance sheet, Orchard filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. The agreement with Lowe�� comprises the initial stalking horse bid in the Court-supervised auction process under Section 363 of the Bankruptcy Code.

  • [By CRWE]

    Today,�GAMR has shed (-9.46%) down -0.035 at $.335 with 160�shares in play thus far (ref. google finance Delayed: 9:31AM EDT July 8, 2013), but don�� let this get you down.

    Great American Group, Inc. has been selected to handle store closing sales at eight Orchard Supply Hardware locations, offering significant product discounts in the Citrus Heights, Fairfield, Huntington Beach, Lone Tree, Long Beach, Midtown, Newark and Vacaville stores

    Orchard previously reported on June 17, 2013, that it had reached an agreement through which Lowe�� Companies, Inc. will acquire the majority of its assets but will allow Orchard to continue day-to-day operations as a separate, standalone business with its brand, strategy and management team intact. To facilitate the acquisition agreement and restructure its balance sheet, Orchard filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. The agreement with Lowe�� comprises the initial stalking horse bid in the Court-supervised auction process under Section 363 of the Bankruptcy Code.

Top 10 Information Technology Companies For 2014: Western Gas Partners LP (WES)

Western Gas Partners, LP (the Partnership) is a master limited partnership (MLP) organized by Anadarko Petroleum Corporation to own, operate, acquire and develop midstream energy assets. The Partnership operates in East and West Texas, the Rocky Mountains (Colorado, Utah and Wyoming) and the Mid-Continent (Kansas and Oklahoma) and are engaged primarily in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids (NGLs) and crude oil for Anadarko and third-party producers and customers. As of December 31, 2011, the Company�� assets consist of 11 gathering systems, seven natural gas treating facilities, seven natural gas processing facilities, one NGL pipeline, one interstate pipeline, and interests in a gas gathering system and a crude oil pipeline. Its assets are located in East and West Texas, the Rocky Mountains (Colorado, Utah and Wyoming), and the Mid-Continent (Kansas and Oklahoma). In August 2012, it has acquired an additional 24% membership interest in Chipeta Processing LLC from Anadarko Petroleum Corporation.

On January 13, 2012, the Partnership completed the acquisition of Anadarko�� 100% ownership interest in Mountain Gas Resources, LLC, which owns the Red Desert Complex (Red Desert), a 22% interest in Rendezvous Gas Services, LLC (Rendezvous) and related facilities. Red Desert includes the Patrick Draw processing plant, the Red Desert processing plant, 1,295 miles of gathering lines and related facilities. Rendezvous owns a 338-mile mainline gathering system serving the Jonah and Pinedale Anticline fields in south-western Wyoming, which delivers gas to the Granger complex and other locations. In July 8, 2011, the Company acquired the Bison gas treating facility from Anadarko. In February 28, 2011, it acquired a natural gas gathering system and cryogenic gas processing facilities, collectively referred to as the Platte Valley assets, financed with borrowings under its revolving credit facility. On February 28,! 2011, Kerr-McGee Gathering LLC, a wholly owned subsidiary of Western Gas Partners, LP (the Partnership), acquired midstream assets from Encana Oil & Gas (USA) Inc. These assets are located in the Denver-Julesburg Basin, northeast of Denver, Colorado, and consist of an approximately 1,054-mile natural gas gathering system and related compression and other ancillary equipment, and gas processing facilities with current cryogenic capacity of 84 one million cubic feet per day.

Rocky Mountains

The Bison treating facility consists of three amine treaters with a combined treating capacity of 450 million cubic feet per day located in the north-eastern corner of Wyoming. The assets also include three compressors with a combined compression of 5,230 horsepower and five generators with combined power output of 6.5 megawatts. The Company operates and has a 100% working interest in the Bison assets, which provide carbon dioxide (CO2) treating services for the coal-bed methane gas gathered in the Powder River Basin. During the year ended December 31, 2011, Anadarko provided approximately 73% of the throughput at the Bison treating facility, and the remaining throughput was from one third-party producer. The Bison treating facility treats and compresses gas from the coal-bed methane wells in the Powder River Basin. The Bison Pipeline, operated by TransCanada, is connected directly to the facility, which is the only inlet into the pipeline. The Bison treating facility also has access to the Ft. Union and Thunder Creek pipelines.

The Company is the managing member of Chipeta, a limited liability company owned by the Partnership (51%), Ute Energy Midstream Holdings LLC (25%) and Anadarko (24%). The Chipeta complex includes a natural gas processing plant with two processing trains, the Natural Buttes plant, and a 100% Partnership-owned 17-mile natural gas liquid (NGL) pipeline connecting the Chipeta plant to a third-party pipeline. The Chipeta assets has cryogenic and refrigeration ! processin! g capacity of 670 million cubic feet per day. These assets provide processing and transportation services in the Greater Natural Buttes area in Uintah County, Utah. During 2011, Chipeta began construction of a second cryogenic train at the Chipeta plant with processing capacity of approximately 300 million cubic feet per day. During 2011, Anadarko is a customer on the Chipeta system with approximately 94% of the system throughput. The Chipeta system has access to Anadarko and third-party production in the area with excess available capacity in the Uintah Basin. Anadarko controls approximately 217,000 gross acres in the Uintah Basin. Chipeta is connected to both Anadarko�� Natural Buttes gathering system and to the Three Rivers gathering system owned by Ute Energy and a third party. The Chipeta plant delivers NGLs through its 17-mile pipeline to the Mid-America Pipeline (MAPL), which provides transportation through the Seminole pipeline in West Texas and ultimately to the NGL markets at Mont Belvieu, Texas and the Texas Gulf Coast. The Chipeta plant has natural gas delivery points through the pipelines, which includes Colorado Interstate Gas Company (CIG), Questar Pipeline Company�� pipeline, and Wyoming Interstate Company, Ltd.

The 47-mile Clawson gathering system, located in Carbon and Emery Counties of Utah, to provide gathering services for Anadarko�� coal-bed methane development of the Ferron Coal play. The Clawson gathering system provides gathering, dehydration, compression and treating services for coal-bed methane gas. The Clawson gathering system includes one compressor station, with 6,310 horsepower, and a CO2 treating facility. During 2011, Anadarko is the shipper on the Clawson gathering system with approximately 97% of the total throughput delivered into the system, and the remaining throughput on the system was from one third-party producer. Clawson Springs Field has approximately 7,000 gross acres and produces primarily from the Ferron Coal play. The Clawson gathering s! ystem del! ivers into Questar Transportation Services Company�� pipeline. The Fort Union system is a 324-mile gathering system operating within the Powder River Basin of Wyoming, starting in west central Campbell County and terminating at the Medicine Bow treating plant. The Fort Union gathering system consists of three parallel pipelines and includes CO2 treating facilities at the Medicine Bow plant. At CO2 levels, the system is capable of treating and blending over one billion cubic feet per day while satisfying the CO2 specifications of downstream pipelines. Fort Union Gas Gathering, LLC is a partnership among Copano Pipelines/Rocky Mountains, LLC (37.04%), Crestone Powder River LLC (37.04%), Bargath, Inc. (11.11%) and the Partnership (14.81%). Anadarko is the field and construction operator of the Fort Union gathering system. The NGLs have market access to Enterprise�� Mid-America Pipeline Company (MAPCO), which terminates at Mont Belvieu, Texas, as well as to local markets.

The 810-mile natural gas gathering system and gas processing facility is located in Sweetwater County, Wyoming. The Granger system includes eight field compression stations with 41,950 horsepower. The processing facility has a cryogenic capacity of 200 million cubic feet per day and refrigeration capacity of 100 million cubic feet per day with NGL fractionation. During 2011, Anadarko is the customer on the Granger system with approximately 54% of throughput, and the remaining throughput was primarily from five third-party shippers. The Granger system is supplied by the Moxa Arch, the Jonah field and the Pinedale anticline across, which Anadarko controls approximately 568,000 gross acres. The Granger gas gathering system has approximately 690 receipt points. The residue gas from the Granger system can be delivered to the pipelines, which includes CIG, Kern River and Mountain Gas Transportation, Inc (MGTI) pipelines through a connect with Rendezvous Pipeline Company, Northwest Pipeline Co (NWPL), Overthrust Pipeline OTTCO, a! nd Questa! r Gas Management Company (QGM).

The 67-mile Helper gathering system, located in Carbon County, Utah, built to provide gathering services for Anadarko�� coal-bed methane development of the Ferron Coal play. The Helper gathering system provides gathering, dehydration, compression and treating services for coal-bed methane gas. The Helper gathering system includes two compressor stations with a combined 14,075 horsepower and two CO2 treating facilities. Anadarko is the shipper on the Helper gathering system. The Helper Field and Cardinal Draw Fields are Anadarko-operated coal-bed methane developments on the south-western edge of the Uintah Basin that produce from the Ferron Coal play. The Helper Field covers approximately 19,000 acres as of December 31, 2011 and Cardinal Draw Field, which lies immediately to the east of Helper Field, also covers approximately 20,000 acres. The Helper gathering system delivers into the Questar Transportation Services Company�� pipeline. Questar provides transportation to regional markets in Wyoming, Colorado and Utah and also delivers into the Kern River Pipeline, which provides transportation to markets in the western United States, primarily California.

The 1,056-mile Hilight gathering system, located in Johnson, Campbell, Natrona and Converse Counties of Wyoming, built to provide low and high-pressure gathering services for the area�� conventional gas production and delivers to the Hilight plant for processing. The Hilight gathering system has 11 compressor stations with 32,263 combined horsepower. The Hilight system has a capacity of approximately 30 million cubic feet per day and utilizes a refrigeration process and provides for fractionation of the recovered NGL products into propane, butanes and natural gasoline. Gas gathered and processed through the Hilight system is from numerous third-party customers, with the nine producers providing approximately 75% of the system throughput during 2011. The Hilight gathering system serves the g! as gather! ing needs of several conventional producing fields in Johnson, Campbell, Natrona and Converse Counties. The Hilight plant delivers residue gas into its MIGC transmission line.

The MIGC system is a 256-mile interstate pipeline regulated by FERC and operating within the Powder River Basin of Wyoming. The MIGC system traverses the Powder River Basin from north to south, extending to Glenrock, Wyoming. The MIGC system is well positioned to provide transportation for the natural gas volumes received from various coal-bed methane gathering systems and conventional gas processing plants throughout the Powder River Basin. MIGC offers both forward-haul and backhaul transportation services and is certificated for 175 million cubic feet per day of firm transportation capacity. During 2011, Anadarko is the firm shipper on the MIGC system, with approximately 86% of throughput, with the remaining throughput from 11 third-party shippers. As of December 31, 2011, Anadarko has a working interest in over 1.7 million gross acres within the Powder River Basin. Anadarko�� gross acreage includes substantial undeveloped acreage positions in the expanding Big George coal play and the multiple seam coal fairway to the north of the Big George play. MIGC volumes are redelivered to the Glenrock, Wyoming Hub, which accesses the interstate pipelines, which includes CIG, Kinder Morgan Interstate Gas Transportation Company, Williston Basin Interstate Pipeline Company, and Wyoming Interstate Gas Company. Volumes are also delivered to Anadarko�� MGTC, Inc. (MGTC) intrastate pipeline, a Hinshaw pipeline that supplies local markets in Wyoming.

The 179-mile Newcastle gathering system, located in Weston and Niobrara Counties of Wyoming, was built to provide gathering services for conventional gas production in the area. The gathering system delivers into the Newcastle plant, which has gross capacity of approximately two million cubic feet per day. The plant utilizes a refrigeration process and provides for frac! tionation! of the recovered NGLs into propane and butane/gasoline mix products. The Newcastle facility is a joint venture among Black Hills Exploration and Production, Inc. (44.7%), John Paulson (5.3%) and the Partnership (50.0%). The Newcastle gathering system includes one compressor station with 560 horsepower. The Newcastle plant has an additional 2,100 horsepower for refrigeration and residue compression. Gas gathered and processed through the Newcastle system is from 12 third-party customers, with the four producers providing approximately 92% of the system throughput during 2011. The producer, Black Hills Exploration, provided approximately 62% of the throughput during 2011. The Newcastle gathering system and plant primarily service gas production from the Clareton and Finn-Shurley fields in Weston County. Propane products from the Newcastle plant are typically sold locally by truck, and the butane/gasoline mix products are transported to the Hilight plant for further fractionation. Residue gas from the Newcastle system is delivered into Anadarko�� MGTC pipeline for transport, distribution and sale.

The Platte Valley system, located in the Denver-Julesburg Basin, consists of a processing plant with current cryogenic capacity of 100 million cubic feet per day, two fractionation trains, a 1,099-mile natural gas gathering system and related equipment. The Platte Valley gathering system has 13 compressor stations with a combined 17,011 of operating horsepower. During 2011, approximately 8% of the Platte Valley system throughput was from Anadarko and the remaining throughput was from various third-party customers, the EnCana Corporation. There are 713 receipt points connected to the Platte Valley gathering system as of December 31, 2011. The system is connected to its Wattenberg gathering system. The Platte Valley system is primarily supplied by the Wattenberg field and covers portions of Adams, Arapahoe, Boulder, Broomfield, Denver, Elbert, and Weld Counties, Colorado. The Platte Valley system de! livers NG! Ls through the pipelines, which includes local markets, ONEOK Overland Pass Pipeline, and the Wattenberg Pipeline owned and operated by DCP Midstream (formerly the Buckeye Pipeline). In addition, the Platte Valley system can deliver to the CIG and Xcel Energy residue gas pipelines.

The Wattenberg gathering system is a 1,781-mile wet gas gathering system in the Denver-Julesburg Basin, north and east of Denver, Colorado, and includes six compressor stations and combined 72,579 of operating horsepower. The Fort Lupton processing plant has two trains with combined processing capacity of 105 million cubic feet per day. During 2011, Anadarko-operated production represented approximately 66% of system throughput. Approximately 29% of Wattenberg system throughput was from two third-party producers and the remaining throughput was from various third-party customers. There are 2,129 receipt points and over 5,900 wells connected to the gathering system as of December 31, 2011. The Wattenberg gathering system is primarily supplied by the Wattenberg field and covers portions of Adams, Arapahoe, Boulder, Broomfield and Weld counties. Anadarko controls approximately 762,000 gross acres in the Wattenberg field. Anadarko drilled 472 wells and completed 2,090 fracs at the Wattenberg field during 2011, and had identified 1,200 to 2,700 opportunities to increase production, including new well locations, re-fracs and recompletions. The Wattenberg gathering system has five delivery points, with the primary delivery points, which includes Anadarko�� Wattenberg processing plant, Fort Lupton processing plant, and Platte Valley processing plant.

The White Cliffs pipeline consists of a 526-mile crude oil pipeline that originates in Platteville, Colorado and terminates in Cushing, Oklahoma. It has an approximate capacity of 80,000 barrels per day. At the point of origin, it has a 100,000-barrel storage facility and a truck-loading facility with an additional 220,000 barrels of storage. The pipeline is a! joint ve! nture owned by SemCrude Pipeline LP (51%), Plains Pipeline LP (34%), Noble Energy, Inc. (5%) and the Partnership (10%). The White Cliffs pipeline has two throughput contracts with Anadarko and Noble Energy. During 2011, Anadarko was the shipper on the White Cliffs pipeline. The White Cliffs pipeline is supplied by production from the Denver-Julesburg Basin and is the only direct route from the Denver-Julesburg Basin to Cushing, Oklahoma. The White Cliffs pipeline delivery point is SemCrude�� storage facility in Cushing, Oklahoma, a major crude oil marketing center, which ultimately delivers to the mid-continent refineries.

Mid-Continent

The 1,953-mile Hugoton gathering system provides gathering service to the Hugoton field and is primarily located in Seward, Stevens, Grant and Morton Counties of Southwest Kansas and Texas County in Oklahoma. The Hugoton gathering system has 44 compressor stations with a combined 92,097 horsepower of compression. Anadarko is the customer on the Hugoton gathering system with approximately 76% of the system throughput, during 2011. During 2011, approximately 19% of the throughput on the Hugoton system was from one third-party shipper with the balance from various other third-party shippers. The Hugoton field is a natural gas fields in North America. The Hugoton gathering system is connected to DCP Midstream�� National Helium plant, which extracts NGLs and helium and delivers residue gas into the Panhandle Eastern pipeline. The system is also connected to the Satanta plant, which is owned by Pioneer Natural Resources Corporation (51%) and Anadarko (49%), for NGLs and helium processing and delivers residue gas into Kansas Gas Services and Southern Star pipeline.

East Texas

The 323-mile Dew gathering system is located in Anderson, Freestone, Leon and Robertson Counties of East Texas. The Dew gathering system has 10 compressor stations with a combined 36,175 horsepower of compression. Anadarko is the only shipper on the ! Dew gathe! ring system. As of December 31, 2011, Anadarko has approximately 833 producing wells in the Bossier play and controls approximately 122,000 gross acres in the area. The Dew gathering system has delivery points with Pinnacle Gas Treating LLC, which is the primary delivery point and is described in more detail below, and Kinder Morgan�� Tejas pipeline.

The Pinnacle gathering system includes the Partnership�� 266-mile Pinnacle gathering system and its Bethel treating plant. The Pinnacle system provides sour gas gathering and treating service in Anderson, Freestone, Leon, Limestone and Robertson Counties of East Texas. The Bethel treating plant, located in Anderson County, has total CO2 treating capacity of 502 million cubic feet per day and 20 long tons per day of sulfur treating capacity. During 2011, Anadarko was shipper on the Pinnacle gathering system with approximately 90% of system throughput and the remaining throughput on the system was from four third-party shippers. The Pinnacle gathering system provide gathering and treating services to the five-county area over, which it extends, including the Cotton Valley Lime formations, which contain concentrations of sulfur and CO2. The Pinnacle gathering system is connected to Atmos Texas pipeline, Enbridge Pipelines (East Texas) LP pipeline, Energy Transfer Fuels pipeline, Enterprise Texas Pipeline, LP�� pipeline, ETC Texas Pipeline, Ltd pipeline, and Kinder Morgan�� Tejas pipeline. These pipelines provide transportation to the Carthage, Waha and Houston Ship Channel market hubs in Texas.

West Texas

The 118-mile Haley gathering system provides gathering and dehydration services in Loving County, Texas and gathers a portion of Anadarko�� production from the Delaware Basin. During 2011, Anadarko�� production represented approximately 69% of the Haley gathering system�� throughput, and the remaining throughput is attributable to Anadarko�� partner in the Haley area. As of December 31, 2011, in the great! er Delawa! re basin, Anadarko has access to approximately 355,000 gross acres, is a portion of which is gathered by the Haley gathering system. The Haley gathering system has multiple delivery points. The primary delivery points are to the El Paso Natural Gas pipeline or the Enterprise GC, LP pipeline for delivery into Energy Transfer�� Oasis pipeline. It also delivers into Southern Union Energy Services��pipeline for further delivery into the Oasis pipeline. The pipelines at these delivery points provide transportation to both the Waha and Houston Ship Channel markets.

The Company competes with QEP Field Services Company, El Paso Midstream Group, Inc., XTO Energy, ETC Texas Pipeline, Ltd, Enbridge Pipelines (East Texas) LP, Kinder Morgan Tejas Pipeline, LP, MIGC, Thunder Creek Gas Services, Williston Basin Interstate Pipeline Company, TransCanada, Williams Field Services, Enterprise Gas Processing, LLC, Jonah Gas Gathering Company, QEP Field Services Company, Anadarko�� Delaware Basin JV Gathering LLC, Enterprise GC, LP, Targa Midstream Services LLC, Southern Union Energy Services Company, DCP Midstream, Merit Energy, ONEOK Gas Gathering Company, Pioneer Natural Resources and AKA Energy.

Advisors' Opinion:
  • [By David Fickling]

    Wesfarmers Ltd. (WES), Australia�� largest private-sector employer, fell the most in more than two years in Sydney trading after it said earnings from its Target department stores would drop as much as 43 percent from a year earlier.

Top 5 Clean Energy Companies For 2014: Kelly Services Inc.(KELYA)

Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries worldwide. The company offers trained employees who work in word processing, data entry, and as administrative support staff; staff for contact centers, technical support hotlines, and telemarketing units; substitute teachers; support staff for seminars, sales, and trade shows; technicians for the technology, aerospace, and pharmaceutical industries; maintenance workers, material handlers, and assemblers; and temporary and full-time placement services, as well as direct-hire placement and vendor on-site management services. It also provides scientific and clinical research workforce solutions; chefs, porters, and hospitality representatives; manual workers to semi-skilled professionals in trade, non-trade, and operational positions; engineering professionals for various disciplines, such as aeronautical, chemical, civil/structural, electrical/instrumentation, environmen tal, industrial, mechanical, petroleum, pharmaceutical, quality, and telecommunications; and employees for creative services positions. In addition, the company offers professionals for corporate finance departments, accounting firms, and financial institutions; talent management solutions; healthcare specialists and professionals for hospitals, ambulatory care centers, HMOs, and other health insurance companies; information technology specialists; legal professionals, such as attorneys, paralegals, contract administrators, compliance specialists, and legal administrators; and mid- to senior-level search and selection services, as well as consulting services. Further, it provides recruitment process and contingent workforce outsourcing, independent contractor solutions, payroll and business process outsourcing, career transition and organizational effectiveness, and executive search services. The company was founded in 1946 and is headquartered in Troy, Michigan.

Advisors' Opinion:
  • [By David Milstead]

    One such outfit is Kelly Services (KELYA). The Troy, Mich., company places temporary employees in a variety of fields, such as law, health care, computing and finance. Although recent job reports have been strong, S&P Capital IQ analyst Michael Jaffe sees employers ��emaining cautious in their hiring practices��and using the kind of temporary workers Kelly specializes in. Jaffe says Kelly is his top pick in the staffing sector, and he rates the stock a ��trong buy.��/p>

  • [By Rich Duprey]

    Investors have taken notice of the trend with shares of ManpowerGroup (NYSE: MAN  ) rising 59% over the past year, Kelly Services (NASDAQ: KELYA  ) up almost 46%, and Robert Half International (NYSE: RHI  ) some 15% higher.

  • [By Dan Burrows]

    Staffing stocks like Manpower Group (MAN), Robert Half International (RHI) and Kelly Services (KELYA) have put up market-beating to market-crushing gains over the last year, boosted by accelerating strength in the job market.

Top 10 Information Technology Companies For 2014: Nestle SA (NESN.VX)

Nestle SA is a Swiss Company engaged in the nutrition, health and wellness sectors. It is the holding company of the Nestle Group, which comprises subsidiaries, associated companies and joint ventures throughout the world. It has such business units as Food and Beverage, Nestle Waters and Nestle Nutrition. It is also active in the pharmaceutical sector. It divides its products into Powdered and liquid beverages, Water, Milk products and Ice cream, Nutrition, Prepared dishes and cooking aids, Confectionery, PetCare and Pharmaceutical products. In February 2011, the Company acquired CM&D Pharma Ltd.

Advisors' Opinion:
  • [By Michael Calia]

    Post Holdings Inc.(POST) agreed to acquire the PowerBar and Musashi brands from Nestle SA(NESN.VX), further expanding the cereal maker’s position in the active nutrition category.

Top 10 Information Technology Companies For 2014: iShares Russell 3000 Index Fund (IWV)

iShares Russell 3000 Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the Russell 3000 Index (the Index). The Index measures the performance of the United States equity market. The Index serves as the underlying index for Russell 3000 Growth and Value Series, and the Russell 1000 and Russell 2000 Indexes, as well as their respective Growth and Value series. The Index is a capitalization-weighted index and consists of the 3000 largest companies domiciled in the United States and its territories.

The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. iShares Russell 3000 Index Fund's investment advisor is Barclays Global Fund Advisors.

Advisors' Opinion:
  • [By John Maxfield]

    Over the past five years, this ETF has beaten the Dow Jones Industrial Average (DJINDICES: ^DJI  ) by 23 percentage points. It's outperformed the Russell 3000 (NYSEMKT: IWV  ) by 21 percentage points. And it's done the same to the eponymous S&P 500, exceeding it by 11 percentage points.

Top 10 Information Technology Companies For 2014: Sunoco Logistics Partners LP (SXL)

Sunoco Logistics Partners L.P. engages in the transport, terminalling, and storage of refined products and crude oil, as well as the purchase and sale of crude oil in the United States. Its Refined Products Pipeline System segment owns and operates approximately 2,200 miles of refined product pipelines that transport gasoline, heating oil, diesel and jet fuel, and liquefied petroleum gas (LPG). This segment also includes approximately 100-mile refined products Harbor pipeline, and 50 miles of inter refinery pipelines; and various joint venture interests in refined product pipeline companies. The company?s Terminal Facilities segment consists of 42 refined product terminals with an aggregate storage capacity of 7.2 million barrels, primarily serving the Refined Products Pipeline System; the Nederland Terminal, a 20.2 million barrel marine crude oil terminal on the Texas Gulf Coast; a 2.0 million barrel refined products terminal serving Sunoco?s Marcus Hook refinery near Phi ladelphia, Pennsylvania; 1 inland and 2 marine crude oil terminals with a combined capacity of 3.4 million barrels, and related pipelines that serve Sunoco?s Philadelphia refinery; and a 1.0 million barrel LPG terminal near Detroit, Michigan. Its Crude Oil Pipeline System segment gathers, purchases, sells, and transports crude oil principally in Oklahoma and Texas. This segment consists of approximately 4,900 miles of crude oil trunk pipelines; approximately 500 miles of crude oil gathering lines; approximately 110 crude oil transport trucks; and approximately 100 crude oil truck unloading facilities. This segment also holds a 91% interest in the Mid-Valley Pipeline Company that owns approximately 1,000 miles of crude oil pipelines; a 60.3% interest in West Texas Gulf Pipe Line Company, which includes approximately 600 miles of crude oil pipe; and a 37.0 percent undivided interest in the 100-mile Mesa Pipe Line system. The company was founded in 2001 and is based in Philadel phia, Pennsylvania.

Advisors' Opinion:
  • [By Dividends4Life]

    Sunoco Logistics Partners (SXL) is a master limited partnership (MLP) that was formed by Sunoco Inc. to acquire, own and operate a group of refined product and crude oil pipelines and terminal facilities.
    Yield: 3.6% | Years of Dividend Growth: 11

Top 10 Information Technology Companies For 2014: Symrise AG (SY1)

Symrise AG is a Germany-based fragrances and flavors manufacturer. The Company diversifies its activities into two business divisions: Flavor & Nutrition and Scent & Care. The Flavor & Nutrition business division produces flavors in liquid, powder, granulated and paste form, providing individual flavors as well as complete solutions which, apart from aroma, can contain additional functional raw materials, colorants or microencapsulated components. The products are divided into the beverages, savory, sweet and consumer health groups. The Scent & Care business division is divided into Fragrances, Oral Care, Life Essentials and Aroma Molecules. The Fragrances products are divided into the Fine Fragrances, Personal Care and Household groups. The Life Essentials are used in the cosmetic ingredients market, and include Botanicals and Cosmetic Ingredients, among others. The Aroma Molecules are used in the aroma chemicals market, and include Sensates (Menthols), among others. Advisors' Opinion:
  • [By Inyoung Hwang]

    Symrise AG (SY1) jumped 5.7 percent to 32.95 euros. The fourth-largest maker of flavors and fragrances pledged to remain one of the most profitable companies in its industry amid higher demand for aroma molecules and fragrances. Earnings before interest, taxes, depreciation and amortization, will be about 20 percent of sales in 2013 and will stay in the range of 19 percent to 22 percent in coming years, the company said today.

Top 10 Information Technology Companies For 2014: British American Tobacco Industries p.l.c.(BTI)

British American Tobacco p.l.c., through its subsidiaries, engages in the manufacture, distribution, and sale of tobacco products. The company offers cigars, cigarettes, smokeless snus, roll-your-own, and pipe tobacco products under the Dunhill, Kent, Lucky Strike, Pall Mall, Vogue, Viceroy, Kool, Rothmans, Peter Stuyvesant, Benson & Hedges, and State Express 555 brand names. It has operations in the Asia-Pacific, the Americas, eastern and western Europe, Africa, and the Middle East. The company was founded in 1902 and is headquartered in London, the United Kingdom. British American Tobacco p.l.c. operates independently of Remgro Ltd. as of November 03, 2008.

Advisors' Opinion:
  • [By G. A. Chester]

    LONDON -- There are things to love and loathe about most companies. Today, I'm going to tell you about three things to love about�British American Tobacco� (LSE: BATS  ) (NYSEMKT: BTI  ) .

  • [By Muhammad Bazil]

    Altria Group Inc (MO) is a producer of cigarettes and other tobacco related products. Two of its competitors include; British American Tobacco (ADR) (BTI) and Imperial Tobacco Group Plc (ADR) (ITYBY)

  • [By Rupert Hargreaves]

    Today I'm looking at British American Tobacco (LSE: BATS  ) (NYSEMKT: BTI  ) to determine whether the shares are still safe to buy at 3,663 pence.

  • [By Alan Oscroft]

    British American Tobacco (LSE: BATS  ) (NYSEMKT: BTI  )
    Thursday will also bring us a first-quarter update from British American Tobacco, and yet again we're seeing a share price rise that has started to tail off. The price hit a 52-week peak of 3,640 pence on March 12 (the same day the FTSE 100 reached a five-year high of 6,534) but has since slipped back to 3,502 pence.

Top 10 Information Technology Companies For 2014: Sands China Ltd (SCHYF)

Sands China Ltd. (Sands China) is an investment holding company. The Company, along with its subsidiaries, is engaged in the development and operation of integrated resorts in Macao, which contain not only gaming areas, but also meeting space, convention and exhibition halls, retail and dining areas and entertainment venues. The Company operates in five segments: The Venetian Macao, Sands Macao, The Plaza Macao, Sands Cotai Central and ferry and other operations. The Venetian Macao, the Plaza Macao and Other developments derive their revenue primarily from casino, hotel, food and beverage, mall, convention, retail and others sources. Ferry and other operations derive their revenue from the sale of ferry tickets for transportation between Hong Kong and Macau. As of December 31, 2011, its properties included 3,554 hotel rooms and suites, 74 restaurants, 1.2 million square feet of retail, 1.2 million square feet of meeting space, two permanent theaters, a 15,000-seat arena and the casino. Advisors' Opinion:
  • [By MARKETWATCH]

    HONG KONG (MarketWatch) -- Hong Kong stocks sold off early Thursday after the Federal Reserve decided to further taper stimulus, and after a final reading of China's manufacturing PMI contracted. The Hang Seng Index (HK:HSI) sank 1.5% to 21,815.04 in holiday-shortened trading. Tech stocks retreated, as Chinese PC maker Lenovo Group Ltd. (HK:992) (LNVGF) dropped 5.3%, failing to get a lift from news that it plans to acquire the Motorola handset business from Google Inc. (GOOG) for $2.91 billion as Lenovo aims for a bigger presence in the U.S. market. Software developer Kingsoft Corp. (HK:3888) (KSFTF) fell 1.9% and Internet giant Tencent Holdings Ltd. (HK:700) (TCTZF) dropped 1.5%. Casino stocks also declined. Sands China Ltds. (HK:1928) (SCHYF) , the Hong Kong-listed unit of Las Vegas Sands Corp. (LVS) , slipped 0.2%, despite financial results that showed Sands China's net income increased 40% year-on-year to $467 million in the fourth quarter. Melco Crown Entertainment Ltd. (HK:6883) (MPEL) slumped 3.2%, and both Wynn Macau Ltd. (HK:1128) (WYNMF) and MGM China Holdings Ltd. (HK:2282)

  • [By MARKETWATCH]

    HONG KONG (MarketWatch) -- Hong Kong stocks rose early Wednesday, with the Hang Seng Index (HK:HSI) up 0.2% at 22,587.72. Hong Kong properties advanced, as the city's major developer Sun Hung Kai Properties Ltd. (HK:16) (SUHJY) rose 0.7%, after the company launched new luxury Riva project and saw the first batch of 64 flats sold out on the first day of sale. Sino Land Co. (HK:83) (SNLAF) rose 1.1%, Cheung Kong (Holdings) Ltd. gained 0.9%, and Henderson Land Development Co. (HK:12) (BACHY) edged up 0.2%. Chinese auto maker Dongfeng Motor Group Co. (HK:489) resumed trading and fell 0.9%, after the company said it signed an agreement with French joint-venture partner PSA Peugeot Citroen to invest 800 million euros ($1.1 billion) for a stake in the company. Most Casino stocks were lower, after reports said Macau planned to cut the duration of operators' licenses to 5 years. Shares of MGM China Holdings Ltd. (HK:2282) (MCHVF) declined 1.6%, SJM Holdings Ltd. (HK:880) lost 1%, and Sands China Ltds. (HK:1928) (SCHYF) dropped 0.8%. On the mainland, the Shanghai Composite Index (CN:SHCOMP) traded flat at 2,119.77.

Top 10 Information Technology Companies For 2014: Iron Mountain Incorporated(IRM)

Iron Mountain Incorporated, together with its subsidiaries, provides information management services primarily in North America, Europe, Latin America, and the Asia Pacific. The company offers records management services, including records management program development and implementation based on best-practices to help customers comply with specific regulatory requirements; implementation of policy-based programs that feature storage for various media comprising paper; flexible retrieval access and retention management; hybrid services to help organizations gain control over their paper records; and specialized services for vital records and regulated industries, such as healthcare, energy, government, and financial services. It also provides data protection and recovery services, such as disaster preparedness; off-site vaulting of data backup media for data recovery in the event of a disaster, human error, or virus; online backup and recovery solutions for desktop and la ptop computers, and remote servers; and technology escrow services to protect and manage source code and other proprietary information. In addition, the company offers information destruction services that primarily consist of physical secure shredding operations; and is involved in the shredding of sensitive documents to third-party recyclers. Further, it provides fulfillment services that assemble custom marketing packages and orders, as well as provide reporting on customer marketing literature inventories; and professional consulting services to develop and implement comprehensive records and information management programs. Iron Mountain Incorporated serves commercial, legal, banking, health care, accounting, insurance, entertainment, and government organizations. The company was founded in 1951 and is headquartered in Boston, Massachusetts.

Advisors' Opinion:
  • [By Travis Hoium]

    What: Shares of Iron Mountain (NYSE: IRM  ) dropped 16% today after the company revealed that the IRS is looking into its switch to a REIT structure.

  • [By Jonathan Yates]

    But it's events like the Missouri accident that should focus industry and investor attention on�Iron Mountain (NYSE: IRM).

    Operating in the business software and services sector, along with other firms like�Microsoft (NASDAQ: MSFT), CA Inc (NASDAQ: CA) and Citrix Systems (NASDAQ: CTXS), Iron Mountain is the premier company in pipeline record management. Iron Mountain plays a critical role in preventing pipeline disasters, maintaining the infrastructure and in overall risk control. The position that Iron Mountain has in the energy network will increase in scale and importance as the use of natural gas increases.

Thursday, March 27, 2014

OptionsHouse Strategist Steve Claussen Explains Options Strategies

Top India Stocks To Buy For 2014

OptionsHouse's Chief Investment Strategist Steve Claussen dropped by for a chat on the Benzinga PreMarket Prep show on Wednesday, March 26. Claussen is always eager to share his knowledge of the market that is backed up by his career spanning over 25 years.

When asked if a retail investor should be investing in options instead of equities, Claussen first cautioned that with any investment, rule number one is not to invest with funds that an investor can't afford to lose.

So with that emphasized, is equities the best choice available to investors?

“That might be the case,” said Claussen. “You might say, hey, Microsoft (NASDAQ: MSFT), good stock. Not going anywhere, I'm going to buy $10,000 worth of stocks. And that's OK, they pay a decent dividend.”

Related: Axiom Capital's Gordon Johnson Discusses Solar Stocks, U.S. Steel

However, an investor completing this transaction has essentially concentrated exposure to one stock, which is what Claussen calls a “concentration risk.” If an investor is exposed too much to one holding, they run the risk of not being able to maximize their return and outperform the major indices.

This is where options comes in.

“Options can allow a $10,000 portfolio to spread that around five different companies, or five different ETFs, or five geographical ETFs,” Claussen argued. He added that an investor who holds an option at the end of the day has the right, but not the obligation, to own the stock. This strategy is best utilized by investors who at the end of the day may have an objective of owning the stock at some point in the future.

As is the case with any investment, options do come with risk.

An options holder in theory can see a 100 percent loss to their position.

“In options, one of the main advantages is you are spending less for the leverage you get versus buying the outright stock,” said Claussen.

Claussen is referring to the fact that options are leveraged, meaning an investor can stretch their money even further by buying options, which on a dollar-per-dollar basis is cheaper. He offered an example to show how options offer leverage using a stock that he holds in his family portfolio, Disney (NYSE: DIS).

If an investor bought 100 shares at $80, it would cost $8,000. Alternatively, an investor could purchase a call option for $75 per share, thereby gaining the same exposure to any rise in Disney shares while paying less.

Naturally, it is important to consider that options, unlike stock, have an expiry date. Once an option expires, it no longer has any value.

Timing is critically important, according to Claussen. In the Disney example, an investor who purchases an $82.50 out of the money call option would need shares of Disney to trade above $82.50 (known as the ‘strike price') mark to earn a profit.

Many novice investors would foolishly invest in and out of the money option chain only to see their investment lose value as shares fail to rise above the strike price.

Claussen's advice to new options trader is to create an options position that acts very much like a stock and its movement is more predictable. This is typically done by buying an in-the-money call option has both an intrinsic and extrinsic value.

Intrinsic value refers to the difference between the stock's price and the option's strike price. As an example, if a call options strike price is $15 and the stock is trading at $20, the intrinsic value of the call option is $5.

Related: Kor Group Founders Christopher Nagy & Dave Lauer Talk Market Structure, High Frequency Trading

Extrinsic value is the amount that an option's price is greater than the intrinsic value. This value declines as the expiration date draws closer.

“Out of the money options are 100 percent extrinsic value, they are a 100 percent wasting asset. In the money options, the portion that is in the money is not a wasting asset,” Claussen argued.

A popular strategy that investors are utilizing would be replacing their stock holdings with an option that has a delta of 0.7. A delta of 0.7 implies for every $1 the stock increases, the call options will increase by $0.70. If the stock continues to appreciate, the delta on the option will increase. By doing so, an investor is making less money as they would with owning the stock, but the investor has minimized his total liabilities by purchasing options for a cheaper price.

What if an investor doesn't want to sell their stock, but incorporate options to protect a profitable position or limit downside?

According to Claussen, an investor could keep their long position and reduce their exposure by selling a call option to collect a premium. Claussen gave a hypothetical example of selling an out-of-the-money (OTM) call option at a price that the stock may not reach. In the event that the stock in fact does not reach this price point, the investor keeps the entire premium received.

Selling an option involves substantial risk and should only be performed by sophisticated investors. Less sophisticated investors could consider buying a put option, which locks in a buying price for the investor to sell their stock at in the future.

Posted-In: disney Microsoft options Optionshouse PreMarket Prep Steve ClaussenNews Options Markets Interview Best of Benzinga

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

  Most Popular UPDATE: BofA Announces $4B Buyback Plan, Raises Qtr. Dividend from $0.01 to $0.05/Share UPDATE: Facebook to Acquire Oculus VR for About $2B Advanced Cannabis Solutions Temporarily Gets CANN-ed Federal Reserve Board announces approval of capital plans of 25 bank holding companies participating in the Comprehensive Capital Analysis and Review Spotify Vs. Pandora Vs. Google Music Vs. iTunes Radio Vs. Xbox Music UPDATE: Bank of America Announces Settlements With Federal Housing Finance Agency (FHFA) and New York Attorney General Related Articles (MSFT + DIS) OptionsHouse Strategist Steve Claussen Explains Options Strategies Bank of America Says Structural Issues Could Pressure Microsoft's EPS Next 2-3 Years Microsoft Announces Expansion of Cloud Services for Mobile Scenarios ETFs Shrugging Off The Selling (DHS, SMH, IGF, INTC) GameStop Misses on Q4 Earnings - Analyst Blog Buying Into Oversold ETFs (BJK, SOCL, PBS, FB, GOOG) Around the Web, We're Loving...

Stocks to Watch: American Apparel, Exelixis, Francesca's Holdings

Among the companies with shares expected to actively trade in Wednesday’s session are American Apparel Inc.(APP), Exelixis Inc.(EXEL) and Francesca's Holdings Corp.(FRAN)

American Apparel unveiled the terms for its planned heavily dilutive stock sale, as it seeks to raise money for purposes including a debt payment next month. At least 61 million shares will be sold for 50 cents each, a sharp discount to Tuesday’s close. Shares dropped 16% premarket, matching the sale price.

Shares of Exelixis dropped 29% to $4.58 premarket as the biotech company said its COMET-1 prostate cancer trial would proceed to final analysis expected later this year, disappointing some analysts who where hoping for an early end to the trial should it prove sufficient survival benefits. Stifel lowered its price target to $9 from $11 as it pushed back expectations for Cometriq to launch as a prostate cancer treatment in 2016 rather than 2015.

Five Below Inc.(FIVE) fiscal fourth-quarter profit grew 31% as the discount retailer’s sales were boosted by new store openings and a modest increase at existing locations. Shares surged 17% to $44.60 premarket.

Francesca’s said its fiscal fourth-quarter earnings fell 29% as the clothing and accessories retailer’s sales missed reduced expectations while markdowns and promotions contributed to lower margins. Chief Executive Neill P. Davis said the sales miss was driven by boutique closures during January due to extreme weather conditions.” He added the negative trends have continued into the current quarter, sending shares down 7% to $19.40 premarket.

Shares of Global Cash Access Holdings Inc.(GCA) traded 9% lower to $7.22 premarket after the company disclosed it would no longer be providing payment services for casino operator Caesars Entertainment Corp.(CZR)

Insmed Inc.(INSM) said its lead product candidate–an inhaled antibiotic to treat serious lung infections–missed its primary goals in a Phase II study of patients with hard-to-treat cases of nontuberculous mycobacterial lung infections. The product candidate, called Arikayce, didn’t produce statistically significant improvement in the levels of mycobacterial density. Shares dropped 10% to $16.39 premarket.

PVH Corp.(PVH) swung to a loss in the fiscal fourth quarter as the clothing company faced charges tied to its acquisition of Warnaco Group Inc., a deal that helped boost revenue. Adjusted earnings topped the company’s own forecast. Shares edged up 2.8% to $120.50 premarket.

ReneSola Ltd.(SOL) said it is being probed as part of the U.S. Department of Commerce’s antidumping investigation of solar products imports. The Chinese solar-products company said it has temporarily stopped shipping products to the U.S. that fall within the scope of the probe and it intends to fully cooperate with the investigation proceedings. Shares dropped 3.6% to $3.78 premarket.

Steelcase Inc.(SCS) swung to a fiscal fourth-quarter profit amid growth in the company’s Americas business. The year-earlier period included big asset write-downs and restructuring-related charges. Shares climbed 9.5% to $15.96 premarket.

Corvex Management LP and Related Fund Management LLC called for an earlier special meeting to replace CommonWealth REIT's(CWH) entire board, with the activist investors criticizing the company’s former board for leaving without engaging in a transition process.

Activist investor Barington Capital Group LP on Wednesday called for the Darden Restaurants Inc.(DRI) to consider seeking out a new chief executive, saying it has “lost confidence” in current chief Clarence Otis’ ability to run the company.

Facebook Inc.(FB) made its second blockbuster acquisition of the year, agreeing Tuesday to acquire Oculus VR Inc., a maker of virtual-reality goggles, for $2 billion in cash and stock.

Kinder Morgan Energy Partners L.P(KMP). said it plans to invest $1 billion to grow its carbon dioxide network, including drilling new wells and a new pipeline.

Landec Corp.(LNDC) said its fiscal third-quarter earnings rose 34% as its food business reported higher revenue.

Lindsay Corp.(LNN) said fiscal second-quarter revenue and earnings fell as the company’s irrigation business remains mired in a sales slump. The company’s results underperformed Wall Street expectations.

Memorial Production Partners LP(MEMP) said it acquired properties in the Eagle Ford trend from privately held Alta Mesa Holdings LP for $173 million.

New York Times Co.(NYT) unveiled Wednesday two new tiers for digital subscriptions, offering both new low-price and premium models to be introduced next week.

Pfizer Inc.(PFE) said its injectable drug for small-for-gestational-age children showed statistically significant increases in height after 24 months in a phase 3B study. The study was intended to generate additional data regarding the safety and efficacy of Genotropin in children born small-for-gestational-age who fail to achieve catch-up growth by two years of age.

Tuesday, March 25, 2014

IRS: Bitcoin is not currency

The federal government will tax digital money such as Bitcoin like property, not currency, the IRS said Tuesday in its first significant guidance on the virtual coin.

Although Bitcoin may operate like coin and paper currency and can be used to pay for goods and services, no country accepts it as "legal tender," the Internal Revenue Service said in its notice.

"Virtual currency is treated as property for U.S. federal tax purposes," the notice said. "General tax principles that apply to property transactions apply to transactions using virtual currency."

The guidance means that wages paid in Bitcoin are subject to federal income tax withholding and payroll taxes and must be reported on W-2 forms. Taxpayers must include the fair market value of Bitcoin payments for goods or services as part of their gross income, the IRS said. The fair market value would be calculated as the U.S. dollar value on the date payment was received.

IRS: Answers to tax questions about Bitcoin

VOICES: The dark side of Bitcoin

Bitcoin traders are subject to capital gains taxes if they are holding the digital money as a capital asset, like stocks or bonds, the IRS said.

On Tuesday, Bitcoin on the Coinbase exchange was selling for $587.35, up from $571.93 on Monday.

Bitcoin "miners," people who use special software to solve math problems and generate Bitcoin, must include the value of any Bitcoin they mine as part of their gross income, the IRS said. Miners must also pay self-employment taxes if they are operating as a Bitcoin-generating business, the IRS said.

Since Bitcoin is not a currency, exchanging Bitcoins for U.S. dollars would not be taxed as a foreign currency gain or loss, the IRS said.

Top Income Stocks For 2014

The IRS guidance "provides clarity for taxpayers who want to ensure that they're doing the right thing and playing by the rules when utilizing Bitcoin and other digita! l currencies," Sen. Tom Carper, D-Del., chairman of the Homeland Security and Governmental Affairs Committee, said in a statement.

Carper has held hearings on Bitcoin and has called on the IRS and other government agencies to address how federal tax and money-laundering regulations apply to virtual currencies.

Bitcoin, launched in 2009, is decentralized digital currency that is traded from person-to-person, rather than through banks, and has no issuing or regulating country.

The IRS in its guidance defined Bitcoin as a "convertible currency" that can be used as a "medium of exchange, a unit of account, and/or a store of value."

Monday, March 24, 2014

Coach: A Champion Among Luxury Retailers

As a luxury brand retailer, Coach Inc. (COH) enjoys strong pricing power, sourcing and distribution advantages, as well as capital efficiency, making it one of the top companies in the industry with a narrow economic moat. Its high quality handbags and accessories, sold at a more attractive price than its competitors, have garnered a large customer base with strong brand loyalty, resulting in a business with excess economic profits. Therefore, it should come as no surprise that investment gurus like John Griffin (Trades, Portfolio) and David Rolfe (Trades, Portfolio) recently acquired over 1 million shares in this company, hoping to gain long term rewards.

Of Capital Efficiency and International Expansion

The year 2014 is set to be a year of change for Coach, as former CEO Lew Frankfort was replaced by Baccarat's ex-CEO Victor Luis, who is set on strengthening the company's international business segment, as well as the expanding into the ready-to-wear and footwear market categories. However, while Luis has conveyed a new team of designers, including a new creative director, to efficiently penetrate the market, the firm's luxury bags and leather accessories are likely to remain the core business. Nonetheless, Coach's international business will provide strong growth opportunities, as 60% of sales currently come from the 550 North American retail stores. The company entered the European market in 2012 via department store partnerships, and management is expecting ongoing penetration (20 retail stores acquired in 2014) to result in $500 million in sales over the next five years.

The luxury retailers Japan business has also been a long-run success, maintaining single-digit growth rates for the past ten years, while competitors reported declines in the same market. Furthermore, Coach's efficiency in designing, distributing, and sourcing its products have led to impeccable industry leading operating margins above 30% and gross margins of 72%, evidencing some pricing power in its competing category. Also, while China's business is still lagging behind other luxury brands in sales, the firm sees significant growth potential in this segment, due to lower operating costs and higher gross margins. Thus, fiscal 2014's projection of $530 million in sales for China seems accurate and should contribute to the firm's excess returns on capital, which have averaged 40% over the past five years (currently at 42.9%).

1395334906128.png

Valuation and Future Outlook

I believe Coach's efforts to develop the underpenetrated international market is a clever strategy, as revenue for same-store sales in North America is expected to decline by -4%. Moreover, the current operating margin of 31% is bound to drop to 27%, consequence of general and administrative spending, as well as control of selling. Nonetheless, the 10-year forecast period predicts these margins to stay above 27%, which seems plausible given the company's historical values. Revenue growth also remains healthy, at a 15.8% growth rate, which should increase as the Chinese market segment blossoms.

1395334956073.png

Although Coach runs some risk of damaging its core image through its ambitious expansion plan to become a full lifestyle brand, I remain bullish that the affordable prices for luxury goods will retain most of the company's customer base. On another note, investors should keep in mind that this firm's sports a healthy 2.69% dividend yield, in addition to its 29.3% ROA and 15.7% EPS growth rate. When added to the 0-debt levels and the stocks trading price discount of 21% relative to the industry average of 18.4x, I think it's clear that Coach is an absolute champion investment.

Disclosure: Patricio Kehoe hold no position in any stocks mentioned.


Also check out: David Rolfe Undervalued Stocks David Rolfe Top Growth Companies David Rolfe High Yield stocks, and Stocks that David Rolfe keeps buying
About the author:Patricio KehoeA fundamental analyst at Lone Tree Analytics
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Sunday, March 23, 2014

5 Best Consumer Service Stocks To Watch Right Now

Prices that go straight up tend to come straight back down.   It doesn't matter whether we're talking about stocks, currencies, or commodities. The more "straight up" they go, the harder they fall.   Parabolic moves happen as buyers chase momentum and rush to get in at any price. Fear of missing out on the action pushes more buyers into the asset. Prices increase, pushing even more buyers in... which increases prices even more, and so on, and so on.   Eventually, the market runs out of buyers, the momentum dies, and everyone rushes for the exits at the same time.   We saw it with Internet stocks in 2000. We saw it with silver in 2011. We saw it with gold almost two years ago. And we're seeing it now with utility stocks.   Yes, that's right... utilities – those stodgy, dividend-paying stocks have gone parabolic. And they've just started to break down. Take a look...

5 Best Consumer Service Stocks To Watch Right Now: ANSYS Inc (ANSS)

ANSYS, Inc. (ANSYS) develops and globally markets engineering simulation software and services used by engineers, designers, researchers and students across a range of industries and academia, including aerospace, automotive, manufacturing, electronics, biomedical, energy and defense. The Company distributes its ANSYS suite of simulation technologies through a global network of independent resellers and distributors (collectively, channel partners) and direct sales offices in global locations. The Company�� product portfolio consists of ANSYS Workbench, multiphysics product, structural mechanics, fluid dynamics, explicit dynamics, electromagnetic, system simulation, simulation process and data management, academic, high-performance computing (HPC), geometry interfaces, meshing and Apache design low-power electronic solutions. On August 1, 2011, the Company acquired Apache Design, Inc.

ANSYS Workbench

ANSYS Workbench is the framework upon which the Company�� suite of advanced engineering simulation technologies is built. The ANSYS Workbench platform delivers productivity, enabling Simulation Driven Product Development.

Multiphysics

The Company�� multiphysics product suite allows engineers and designers to create virtual prototypes of their designs operating under multiphysics conditions. ANSYS multiphysics software enables engineers and scientists to simulate the interactions between structural mechanics, heat transfer, fluid flow and electromagnetics all within a single, engineering simulation environment.

Structural Mechanics

The Company�� structural mechanics product suite offers simulation tools for product design. These tools have capabilities that cover a range of analysis types, elements, contacts, materials, equation solvers and coupled physics capabilities all focused towards understanding and solving complex design problems.

Fluid Dynamics

The Company�� fluid dynamics product suit! e offers modeling of fluid flow and other related physical phenomena. Fluid flow analysis capabilities provide all the tools needed to design new fluids equipment and to troubleshoot already existing installations. The fluid dynamics product suite contains general-purpose computational fluid dynamics software and specialized products to address specific industry applications.

Explicit Dynamics

The Company�� explicit dynamics product suite simulates events involving short-duration, large-strain, large-deformation, fracture, complete material failure or structural problems with complex interactions. This product suite is used for simulating physical events that occur in a short period of time and may result in material damage or failure.

Electromagnetics

The Company�� electromagnetics product suite provides field simulation software for designing high-performance electronic and electromechanical products. The software streamlines the design process and predicts performance - all prior to building a prototype - of mobile communication and Internet-access devices, broadband networking components and systems, integrated circuits (IC) and printed circuit boards (PCB), as well as electromechanical systems such as automotive components and power electronics equipment.

System Simulation

The Company delivers the ability to perform complete simulation studies as a system for some of the product designs. This is accomplished through a complete set of physics solutions that are integrated into a multiphysics capabilities set. A collaborative simulation environment provides modeling scalability for evaluating entire systems, including three dimensional (3-D) high-fidelity models, multibody dynamics, circuit reduced-order models, and any combination of these.

Simulation Process and Data Management

ANSYS Engineering Knowledge Manager (ANSYS EKM) is a solution for simulation-based process and data management. ANSY! S EKM pro! vides solutions to all levels of a company, enabling an organization to address the issues associated with simulation data, including backup and archival, traceability and audit trail, process automation and intellectual property protection.

Academic

The Company�� academic product suite provides a portfolio of academic products based on several usage tiers: associate, research and teaching. Each tier includes various noncommercial products that bundle a range of physics and advanced coupled field solver capabilities. The academic product suite provides entry-level tools intended for class demonstrations and hands-on instruction. It provides flexible terms of use and more complex analysis suitable for doctoral and post-doctoral research projects. The Company also provides a product suitable for student use at home.

High-Performance Computing

The Company�� HPC product suite enables insight into product performance. The HPC product suite delivers cross-physics parallel processing capabilities for the full spectrum of the Company�� simulation software by supporting structural, fluids, thermal and electromagnetic simulations in a single HPC solution.

Geometry Interfaces

The Company offers geometry handling solutions for engineering simulation in an integrated environment with direct interfaces to all CAD systems, support of additional readers and translators. It also offers an integrated geometry modeler focused on analysis.

Meshing

Creating a mesh that transforms a physical model into a mathematical model is a critical and foundational step in almost every engineering simulation study. The Company�� meshing technology provides a means to balance these requirements, obtaining the right mesh for each simulation in the most automated way possible.

Apache Design Low-Power Electronic Solutions

The Company�� suite of Apache software delivers power analysis and optimization pl! atforms a! long with integrated methodologies that provide capabilities for managing the power budget, power delivery integrity, and power-induced noise in an electronic design, from initial prototyping to system sign-off. These solutions deliver correlation to silicon measurement, and the capacity to handle an entire electronic system, including IC, package, and PCB.

Advisors' Opinion:
  • [By Northrop Puckett]

    The company is facing headwinds in the broader economy. This can be seen in declining sales in many areas of their business. Regionally, the U.S was flat; Northern Europe was up; Southern Europe was down; and emerging markets were down. Autodesk also lowered quarterly and yearly revenue expectations. This lowering of guidance by Autodesk also matches the same guidance changes made by competitors Parametric Technology (PMTC) and ANSYS (ANSS), so it is not necessarily losing out to its rivals in this case.

  • [By Jonas Elmerraji]

    We're seeing the exact same setup in shares of simulation software maker ANSYS (ANSS). Like CSC, ANSYS is sandwiched between a horizontal price ceiling above shares around $90 a share and a similar horizontal floor at $83.50 a share. From here, the trading signal comes on a breakout outside of the channel.

    Whenever you're looking at any technical price pattern, it's critical to think in terms of those buyers and sellers. Rectangles, triangles, and other pattern names are a good quick way to explain what's going on in a stock, but they're not the reason it's tradable – instead, it all comes down to supply and demand for shares.

    That $90 resistance level is a price where there has been an excess of supply of shares; in other words, it's a place where sellers have been more eager to step in and take gains than buyers have been to buy. That's what makes a breakout above it so significant – the move means buyers are finally strong enough to absorb all of the excess supply above that price level. Don't be early on this trade.

  • [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 Ansys (Nasdaq: ANSS  ) , whose recent revenue and earnings are plotted below.

  • [By GURUFOCUS]

    ANSYS, Inc. (ANSS), the market leader in simulation-driven product development software, declined after reporting quarterly results that were negatively impacted by slower end market demand. Despite the near-term headwind, we believe that ANSYS remains the dominant global provider of simulation software and that the company stands to benefit from the ongoing adoption of its simulation tools. We also believe that ANSYS will increasingly use its cash to repurchase its shares, which we believe will generate additional shareholder value.

5 Best Consumer Service Stocks To Watch Right Now: Briggs & Stratton Corporation (BGG)

Briggs & Stratton Corporation designs, manufactures, markets, and services air cooled gasoline engines for outdoor power equipment. It operates in two segments, Engines and Products. The Engines segment offers four-cycle aluminum alloy gasoline engines that are used primarily by the lawn and garden equipment industry. Its products are used in various lawn and garden equipment applications, including walk-behind lawn mowers, riding lawn mowers, garden tillers, and snow throwers, as well as on products for industrial, construction, agricultural, and other consumer applications that include portable and standby generators, pumps, and pressure washers. This segment also manufactures and sells replacement engines and service parts to sales and service distributors. The Products segment offers portable and standby generators, pressure washers, snow throwers, and lawn and garden powered equipment. This segment sells its products through various channels of retail distribution, in cluding consumer home centers, warehouse clubs, mass merchants, and independent dealers under its brands, which include Briggs & Stratton, Snapper, Simplicity, Ferris, Snapper Pro, Murray, and Victa, as well as other brands, such as Craftsman, John Deere, GE, and Troy-Bilt. The company serves original equipment manufacturers worldwide. Briggs & Stratton Corporation was founded in 1908 and is based in Wauwatosa, Wisconsin.

Advisors' Opinion:
  • [By Rich Duprey]

    Small-engine maker�Briggs & Stratton� (NYSE: BGG  ) announced today its third-quarter dividend of $0.12 per share, the same rate it's paid for the past four quarters after raising the payout 9% from $0.11 per share.

  • [By Jake L'Ecuyer]

    Briggs & Stratton (NYSE: BGG) shares tumbled 7.70 percent to $20.98 after the company reported downbeat Q2 results and lowered its FY14 earnings forecast.

Top India Stocks To Buy For 2014: Real Goods Solar Inc.(RSOL)

Real Goods Solar, Inc. operates as a residential and commercial solar energy integrator primarily in California and Colorado. The company provides engineering, procurement, and construction services. It offers various turnkey solar energy services, including design, procurement, permitting, build-out, grid connection, financing referrals, and warranty and customer satisfaction services. The company installs residential and small commercial systems that range between 3 kilowatts and 1 megawatt output. It also engages in the retail sale of renewable energy products. The company was founded in 1978 and is based in Louisville, Colorado.

Advisors' Opinion:
  • [By Bryan Murphy]

    If you were lucky enough to be in an American Community (OTCMKTS:ACYD) position anytime before October 8th, then congratulations - you're up big. Now get out. Instead, use freed-up that capital to take on a position in Real Goods Solar, Inc. (NASDAQ:RSOL), which looks like it's at the beginning of a good-sized rally.

  • [By Bryan Murphy]

    My enthusiasm regarding Real Goods Solar, Inc. (NASDAQ:RSOL) and Westinghouse Solar Inc. (OTCMKTS:WEST) hasn't exactly been a veiled secret. Though I've favored one over the other at various times since the entire solar panel industry went back into high gear in the middle of the second quarter, I've been a fan of both RSOL as well as WEST for a while. The trick has been finding the right entry spot for both of these volatile stocks.

5 Best Consumer Service Stocks To Watch Right Now: Essex Property Trust Inc. (ESS)

Essex Property Trust, Inc. operates as a self-administered and self-managed real estate investment trust in the United States. It engages in the ownership, operation, management, acquisition, development, and redevelopment of apartment communities, as well as commercial properties. As of March 31, 2012, the company owned or had interests in 158 apartment communities; and 5 commercial buildings, as well as 5 development projects. Its communities are located in Los Angeles, Orange, Riverside, San Diego, Santa Barbara, and Ventura counties in southern California; and the San Francisco Bay area in northern California, as well as in the Seattle metropolitan area. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. Essex Property Trust, Inc. was founded in 1971 and is headquartered in Palo Alto, California.

Advisors' Opinion:
  • [By Sean Williams]

    To get a better idea of how RealPage is doing, it's always best to look at occupancy rates for some of the nation's biggest residential-REITs. In AvalonBay Communities' (NYSE: AVB  ) most recent quarter, the company reported a 5% increase in revenue attributable to a 4.7% boost in prices in established communities, and a 0.3% uptick in occupancy. For Equity Residential (NYSE: EQR  ) it was much of the same, with revenue rising 5.4% in the fourth-quarter as occupancy rates rose 40 basis points to 95.4% from the year-ago period. Finally, Essex Property Trust (NYSE: ESS  ) delivered some of the strongest occupancy results of all, with 96.9% of its units occupied as of the end of January. The point is that with occupancy rates at their lowest levels in more than a decade, these residential REITs are driving growth by boosting prices because of rent scarcity.

  • [By Jayson Derrick]

    Bloomberg reported�Essex Property Trust Inc. (NYSE: ESS) has made an offer to acquire BRE Properties for about $5 billion.

    BRE Properties Chief Executive Office Constance B. Moore had publicly hinted earlier this year that the company would consider ��ny legitimate proposal��after an investment firm Land & Buildings had made a $4.6 billion offer valued at $60 a share.

5 Best Consumer Service Stocks To Watch Right Now: Vertex Pharmaceuticals Incorporated(VRTX)

Vertex Pharmaceuticals Incorporated engages in discovering, developing, manufacturing, and commercializing small molecule drugs for the treatment of serious diseases worldwide. Its products include telaprevir, a prescription medicine used for the treatment of patients with genotype 1 hepatitis C virus (HCV) infection; and Ivacaftor, a prescription medicine used for the treatment of cystic fibrosis. The company markets its products under the INCIVEK brand name in the United States and Canada; INCIVO brand in the United Kingdom, Germany, France, Sweden, Austria, Finland, Denmark, Switzerland, and Norway; KALYDECO brand in the United States; and TELAVIC brand in Japan. Its drug candidates comprise VX-222, a Phase II clinical trial drug candidate, and ALS-2200 and ALS-2158, a Phase I clinical trial drug candidates that are designed to inhibit the replication of HCV; VX-809 and VX-661, a Phase II clinical trial drug candidates that improve the function of defective cystic fibro sis; VX-509, a Phase II clinical trial drug candidate for the treatment of patients with rheumatoid arthritis and other immune-mediated inflammatory diseases; VX-765, a Phase II clinical trial drug for the treatment of epilepsy; and VX-787, an investigational drug candidate for the treatment of influenza A. The company was founded in 1989 and is headquartered in Cambridge, Massachusetts.

Advisors' Opinion:
  • [By Brian Orelli]

    Hepatitis C is a slow-developing disease, so there's no immediate rush to treat newly diagnosed patients as witnessed by the drop off in sales of Vertex Pharmaceuticals' (NASDAQ: VRTX  ) Incivek. In the first quarter, sales of the drug, which also has to be used in combination with pegylated interferon, fell 42% year over year. It's hard to see how simeprevir�plus pegylated interferon would make inroads with doctors with all-oral hepatitis C combinations in the works.

  • [By John Udovich]

    Last week, it was reported that S&P MidCap 400 constituents Vertex Pharmaceuticals (NASD: VRTX) and Ametek Inc (NYSE: AME) would be replacing Advanced Micro Devices (NYSE: AMD) and SAIC Inc (NYSE: SAI) in the S&P 500, and Advanced Micro Devices and SAIC will replace Vertex Pharmaceuticals and Ametek in the S&P Mid Cap 400. I should mention that both Advanced Micro Devices and SAIC Inc are�in our�SmallCap Network Elite Opportunity (SCN EO) portfolio and as of today, we are down 1.29% and up 19.77%, respectively, in both stocks. In the case of�Advanced Micro Devices, we feel the company�� transition into mobility and gaming consoles makes it a compelling value while defense contractor SAIC Inc is interesting as its well positioned to address�cyber security issues. Moreover, SAIC Inc is splitting into 2 companies in a transaction that�� expected to be completed before the end of the month.

  • [By Jon C. Ogg]

    A larger concern is this “lost in translation” issue. This REIT is acquiring 2 biomedical office buildings that are 96% occupied, with a 15-year term with Vertex Pharmaceuticals Inc. (NASDAQ: VRTX). Vertex is now worth almost $20 billion and is expected to be profitable in 2015. Senior Housing will almost certainly get an earnings boost from this lease, but there is one small problem here – most investors believe that they are investing in�a company that makes its bread and butter from senior living facilities. Owning biotech leases of healthy large companies is not a bad business; it just changes the focus of the company because this will add about 20% or so in size.

  • [By Keith Speights]

    Vertex Pharmaceuticals (NASDAQ: VRTX  ) focuses largely on cystic fibrosis. Shares have skyrocketed more than 130% since the biotech gained approval for Kalydeco from the U.S. Food and Drug Administration in January 2012.The good news for investors is that Vertex has two other experimental drugs targeting cystic fibrosis that could eventually drive annual sales to $3 billion or more.