Biotech investing is like the Wild West: Anything can -- and does -- happen.
Inexpensive stocks in this sector can shoot higher on signals of positive test results. By the same token, top-performing biotech shares can plummet when a flagship product fails to gain regulatory approval or is forced into irrelevancy by a competitor.
Even companies that appear to be up-and-coming industry leaders can quickly fade into has-been status on news of a minor negative occurrence. In other words, while the biotech investing arena can sometimes offer rapid returns, it is only for investors who can stomach risk.
One tactic used by the most successful investors in this arena is to spread risk across multiple stocks. This tactic relies on speculating that one or more will be a huge winner, creating profits for the portfolio despite the almost guaranteed losers.
Best Performing Stocks To Buy For 2015: Aruba Networks Inc.(ARUN)
Aruba Networks, Inc. provides next-generation network access solutions for the mobile enterprises worldwide. Its products include ArubaOS, an operating system software for wired, wireless, and remote access products for integrating user-based security, application-aware radio-frequency services, and wireless LAN access to deliver mobile networking solutions; software modules for ArubaOS; mobility controllers for managing wired and wireless access; access points, which serve as on-ramps that aggregate user traffic onto the enterprise network and direct this traffic to mobility controllers; and mobility access switches that provide secure network access for wired users and devices. The company also offers remote networking products comprising remote access points for securing always-on network access to corporate enterprise networks from remote locations; Aruba Instant; and Virtual Intranet Access client software that provides secure network connectivity for Windows laptops and MacBooks. In addition, it offers outdoor wireless mesh routers to secure Wi-Fi access and backhaul links for transporting voice, video, and data traffic wirelessly. Further, the company provides management and security software products, such as AirWave network management for managing mobile and wired users on multisite networks; and Amigopod access management, which manages secure wireless LAN access for visitors, contractors, employees, and their mobile devices, as well as offers cloud-based content security services for branch offices and teleworkers. It markets its products to construction, general enterprise, education, finance, government, healthcare, hospitality, manufacturing, media, retail, technology, telecom, transportation, and utility industries through its sales force, value-added resellers, value-added distributors, and original equipment manufacturers. The company was incorporated in 2002 and is headquartered in Sunnyvale, California.
Advisors' Opinion:- [By Roberto Pedone]
One network equipment player that's quickly moving within range of triggering a major breakout trade is Aruba Networks (ARUN), which provides enterprise mobility solutions. This stock is off to a weak start in 2013, with shares off by 11%.
If you take a look at the chart for Aruba Networks, you'll notice that this stock just formed a major bottom chart pattern, after buyers stepped in to support the price over the last month and change from $17 to $16.25 a share. Following that bottom, shares of ARUN have now started to rebound higher and move back above its 50-day moving average of $17.73 a share. That move is quickly pushing shares of ARUN within range of triggering a major breakout trade.
Traders should now look for long-biased trades in ARUN if it manages to break out above some near-term overhead resistance levels at $19.16 a share to its 200-day moving average at $19.63 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 2.12 million shares. If that breakout triggers soon, then ARUN will set up to re-fill some of its previous gap down zone from May that started near $22 a share. Any high-volume move above $22 will then give ARUN a chance to hit $24 to $25 a share.
Traders can look to buy ARUN off any weakness to anticipate that breakout and simply use a stop that sits right below support at $17 a share or below $16.25 a share if you want to give it more room. One can also buy ARUN off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Best Performing Stocks To Buy For 2015: Glatfelter (GLT)
P. H. Glatfelter Company manufactures and sells specialty papers and fiber-based engineered materials in the United States and internationally. It offers carbonless and forms papers for credit card receipts, multi-part forms, security papers, and other end-user applications; book publishing papers for the production of hardbound books and other book publishing needs; envelope and converting papers for the direct mail market, shopping bags, and other converting applications; and engineered products for digital imaging, transfer, casting, release, postal, playing card, and other niche specialty applications. The company also provides food and beverage paper used for tea bags and single serve coffee products; metallized products used in the labeling of beer bottles, innerliners, gift wrap, self-adhesive labels, and other consumer products applications; and composite laminates papers used in production of decorative laminates, furniture, and flooring applications, as well as a line of paper products used in batteries, medical masks, and other engineered applications. In addition, it offers airlaid non-woven fabric-like materials used in feminine hygiene products, adult incontinence products, cleaning pads and wipes, food pads, napkins and tablecloths, and baby wipes. The company markets its products directly, as well as through wholesale paper merchants, brokers, and agents. P. H. Glatfelter Company was founded in 1864 and is headquartered in York, Pennsylvania.
Advisors' Opinion:- [By CRWE]
Glatfelter (NYSE:GLT) reported that the previously announced presentation by Dante C. Parrini, Chairman and Chief Executive Officer, at the Deutsche Bank Global Industrials and Basic Materials Conference on Wednesday, June 13, 2012 will be available via a live web cast.
Top Supermarket Companies To Own In Right Now: JMP Group Inc (JMP)
JMP Group Inc., through its subsidiaries, operates as an investment banking, asset management, and corporate credit management company in the United States. The company provides various investment banking products and services, such as capital raising, mergers and acquisitions transaction, and other strategic advisory services to corporate clients. It also offers sales and trading services, which include distributing equity research products, communicating proprietary investment recommendations, executing equity trades on behalf of institutional clients, and marketing the securities of companies, as well as related brokerage services to institutional investors. In addition, the company provides proprietary equity research in five industries, including consumer, financial services, healthcare, real estate, and technology industries. Further, it provides asset management products and services to institutional investors, and high net-worth individuals; and involves in the man agement of collateralized loan obligations. JMP Group Inc. was founded in 1999 and is headquartered in San Francisco, California with additional offices in New York, New York; Boston, Massachusetts; Chicago, Illinois; and Alpharetta, Georgia.
Advisors' Opinion:- [By Marc Bastow]
Full-service investment banking, asset management and corporate credit management firm JMP Group (JMP) raised its quarterly dividend 13% to 4.5 cents per share, payable April 11 to shareholders of record as of March 28.
JMP Dividend Yield: 2.41%
Best Performing Stocks To Buy For 2015: Ishares Trust Dow Jones United States Real Estate (IYR)
iShares Dow Jones U.S. Real Estate Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the Dow Jones U.S. Real Estate Index (the Index). The Index measures the performance of the real estate sector of the United States equity market.
The Index includes companies in sub sectors, such as real estate holding and development, and real estate investment trusts (REITs). The Fund uses a representative sampling strategy in seeking to track the Index that collectively has an investment profile similar to the Index.
Advisors' Opinion:- [By Markos Kaminis]
As the SPDR S&P 500 (SPY) has gained 18.1% this year, Annaly Capital shares sank approximately 17.6%; American Capital Agency and Two Harbors are down 22% and 12%, respectively. The whole real estate stock sector has been under pressure, as evidenced by the iShares US Real Estate (IYR) drop of 1.3% year-to-date. Despite a steadily improving actual real estate market, the mREIT group has faced criticism about what damage could ensue to held asset portfolio values in a rapidly rising rate environment. Also, the mortgage REITs' abilities to manage their businesses would become complicated by a rising cost of borrowing matched against longer duration income streams at low relative yields. Reduced dividends result from less income, and lower security values are priced in.
Best Performing Stocks To Buy For 2015: 21Vianet Group Inc.(VNET)
21Vianet Group, Inc. provides carrier-neutral Internet data center services in China. It provides hosting and related services, managed network services, and cloud computing infrastructure, enhancing the reliability, security, and speed of its customers' Internet connections through 21Vianet's Internet infrastructure. The company?s customers locate their servers and networking equipment in 21Vianet's data centers and connect to China's Internet backbone through 21Vianet's fiber optic network. In addition, its managed network services enable customers to deliver data across the Internet in a faster and reliable manner through its data transmission network and proprietary BroadEx smart routing technology. The company operates 51 data centers located in 33 cities in China with approximately 6,600 cabinets under management. 21Vianet serves a diversified base of approximately 1,400 customers that span various industries ranging from Internet companies to government entities an d blue-chip enterprises to small- to mid-sized enterprises. The company was founded in 1999 and is headquartered in Beijing, the People?s Republic of China.
Advisors' Opinion:- [By Eric Volkman]
21Vianet Group (NASDAQ: VNET ) is calling in what it hopes will be a stock price-boosting move. The company's board has authorized a fresh repurchase program for up to $10 million worth of shares. The initiative will be in effect for one year.
- [By Jason Shubnell]
Leading and Lagging Sectors
Technology stocks gained Friday, with Parametric Sound (NASDAQ: PAMT) leading advancers after the company provided post merger update and outlook. Among the leading sector stocks, gains came from 21Vianet Group (NASDAQ: VNET), BlackBerry (NASDAQ: BBRY), Canadian Solar (NASDAQ: CSIQ), and Veeco Instruments (NASDAQ: VECO).
In trading on Friday, utilities shares rose by just 0.06 percent. Among the sector stocks, Exterran Partners LP (NASDAQ: EXLP) was down more than 4.8 percent, while PG&E (NYSE: PCG) tumbled around 3.75 percent.
Top Headline
BlackBerry (NASDAQ: BBRY) posted a narrower-than-expected fourth-quarter loss.
BlackBerry posted a quarterly net loss of $423 million, or $0.80 per share, versus a year-ago profit of $98 million, or $0.19 per share. Its loss from continuing operations came in at $423 million, or $0.80 per share, compared to a year-ago profit of $94 million, or $0.18 per share. BlackBerry�� adjusted loss from continuing operations came in at $0.08 per share.
Its revenue slipped 64% to $976 million. However, analysts were estimating a loss of $0.56 per share on revenue of $1.17 billion. BlackBerry sold around 3.4 million smartphones in the quarter.
Equities Trading UP
Finish Line (NASDAQ: FINL) shares shot up 3.64 percent to $27.44 after the company posted better-than-expected fourth-quarter earnings. - [By Jake L'Ecuyer]
21Vianet Group (NASDAQ: VNET) was down, falling 7.66 percent to $16.99 after the company reported its unaudited Q3 financial results. Pacific Crest downgraded the stock from Outperform to Sector Perform.
Best Performing Stocks To Buy For 2015: URS Corporation(URS)
URS Corporation provides engineering, construction, and technical services to the power, infrastructure, federal, and industrial and commercial market sectors in the United States and internationally. Its services for power sector include planning, designing, engineering, constructing, retrofitting, and maintaining a range of power-generating facilities; and the systems that transmit and distribute electricity, as well as the development and installation of clean air technologies that reduce emissions at fossil fuel power plants. The company?s services for infrastructure sector comprise program management, planning, architect, engineering, general contracting, construction, and construction management for surface, air, and rail transportation networks; ports and harbors; and water supply, and treatment and conveyance systems. Its services for federal sector consist of program management; planning, design, and engineering; systems engineering and technical assistance to con struction and construction management; operations and maintenance; and decommissioning and closure primarily for the United States federal government and national governments of other countries. URS Corporation?s services for industrial and commercial sector include front-end studies, engineering and process design, procurement, construction and construction management, facility management, and operations and maintenance, as well as due diligence, permitting, compliance, environmental management, pollution control, health and safety, waste management, and hazardous waste remediation. The company was formerly known as Broadview Research Corporation and changed its name to URS Corporation in 1976. URS Corporation was founded in 1904 and is headquartered in San Francisco, California.
Advisors' Opinion:- [By Rich Smith]
On Monday, the Department of Defense awarded 19 contracts, which added�up to just under $1.5 billion in total value. The largest award went to a private company to pay for "full line food distribution" in Okinawa. But even so, there were a few contracts worth noting, going to publicly traded companies:
- [By Vera Yuan]
On July 13, 2014, URS Corporation (URS) announced the execution of a definitive agreement under which AECOM Technology Corporation will acquire all outstanding shares of URS Corporation again at a premium to the Fund�� average cost. Similarly, on news of this announcement, the Fund sold its remaining holding in URS Corporation as the stock approached our calculation of intrinsic value.From Robert Olstein (Trades, Portfolio)�� The Olstein Strategic Opportunities Fund�� 2014 Second Quarter Letter to Shareholders.Also check out: Robert Olstein Undervalued Stocks Robert Olstein Top Growth Companies Robert Olstein High Yield stocks, and Stocks that Robert Olstein keeps buying Currently 0.00/512345
Rating: 0.0/5 (0 votes)
- [By Ben Levisohn]
Fidelty’s John Mirshekari�took a look at URS�(URS) today �at the Value Investing Congress.�His takeaway: The stock could double in two years.
Agence France-Presse/Getty ImagesHis analysis started with URS’s use of its free cash. During the past, it hasn’t been pretty. They spent 6.3 billion on eight acquisitions, they’ve bought companies at valuations higher than own stock and return-on-equity has dropped from high teens to just 6%.
The problem hasn’t been its business: Its return on tangible capital is 17%. Instead, the problem is that its management hasn’t maximized value through capital allocation. URS has lowest valuation: 9x 2013 cash earnings in its industry.
Part of the problem: Management incentives are based on net income. This year, however, relative total shareholder return was added., something Mirshekari calls�”a step in the right direction.” In May, URS filed an amended proxy which says it will look to change incentives from net income to return on equity and earnings per share. More importantly, it said acquisitions would end.
If all goes right, URS could double in two years,�Mirshekari says, comparing it to AECOM Technology (ACM).
Looks a lot like AECOMM, which did something similar and rallied.
Best Performing Stocks To Buy For 2015: Axcelis Technologies Inc.(ACLS)
Axcelis Technologies, Inc., together with its subsidiaries, designs, manufactures, and services ion implantation, dry strip, and other processing equipment used in the fabrication of semiconductor chips in the United States, Europe, and the Asia Pacific. It offers a line of high energy, high current, and medium current ion implanters for various applications, such as line of single wafer implanters, known as the Optima platform, comprising the Optima XE, the Optima HD, and the Optima MD. The company also offers dry strip tools, including the Integra RS, which comprises paired-chamber process modules. In addition, it provides aftermarket services and support, such as spare parts, equipment upgrades, maintenance services, and customer training. The company sells its equipment and services through direct sales force, distributors, and manufacturing representatives. Axcelis Technologies was founded in 1995 and is headquartered in Beverly, Massachusetts.
Advisors' Opinion:- [By Ben Axler]
An old spin-out of Eaton Corp. (ETN), Axcelis Technologies (ACLS) designs, manufactures and services ion implantation, dry strip and other processing equipment used in the fabrication of semiconductor chips. The semiconductor capital equipment industry is very cyclical, and as a smaller player in the industry, ACLS has not been immune, and gone through protracted periods of losses. In the past few years, the company has taken numerous steps to reposition itself for the next cyclical upswing by listening to its customers and investing heavily in R&D to revamp its product line to expand its addressable market opportunity, right-sizing its cost structure to substantially lower its breakeven level, establishing new collaborative partnerships, and optimizing its balance sheet to unlock value. Now with signs of a cyclical upswing occurring, and being led by memory - Micron (MU) and SanDisk (SNDK), ACLS is poised for accelerating earnings potential beginning in Q4'2013 that could drive its stock price substantially higher. However, with a few nearer-term catalysts on the horizon, investors may not want to wait too long before purchasing shares. As an early indicator, investors should consider that insiders recently purchased the stock in the open market in August at current levels. These stock purchases coincide with the one year anniversary of ACLS's new Purion M product line entering an evaluation period with a major customer. Sell-side analysts are starting to take notice and listening in to the company's recent conference call, which at least opens the door to new broker initiations in the future. The downside risk appears mitigated by ACLS's strengthened balance sheet, and dramatically improved operating financial model that has stemmed further cash burn. As the company hits an inflection point with new customer contracts and proves its earnings cycle is under way, we expect ACLS's valuation discount to peers to narrow and the stock to appreciate substantially
- [By Stephen Simpson, CFA]
The major dry strip product today is Suprema - Mattson's most advanced tool, and one that uses inductively coupled plasma (ICP) technology and vacuum transfer. Two of the company's primary competitors use one but not the other, while the third uses both but charges about 20% more for its tools. According to Gartner, Mattson holds about 22% market share in this roughly $180 million/year market, with Lam Research (which acquired Novellus and dry strip IP from Axcelis (ACLS)) and PSK as the primary competitors.
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