Best Dividend Stocks For 2017: April 2014

Tuesday, April 29, 2014

Qualcomm Is Still Going Strong

When someone expects a lot from you, it might either put a lot of pressure on your performance or even your best might not please them. This is actually what is happening with Qualcomm (QCOM) because despite stellar top and bottom line growth at nearly 24% year-on-year in the last five years, the stock has appreciated just 15%. But Qualcomm still looks good for the long run.

Outlook

Qualcomm's license business' revenue and profits will fall when developed markets shift to 4G, as it would earn 3.3% royalty on 4G/LTE, while it earns a 5% royalty for 3G. The bright side remains that the complete transition from 3G to 4G/LTE will take at least a couple of years in the developed markets. Moreover, the need to backward-integrate will provide Qualcomm with ample opportunities in developing countries as they are shifting to 3G now.

The company's margins have reduced, but its superior business and market dominance cannot be challenged. It held nearly 86% of the total market for LTE chipsets in 2012 and continues the same dominance this year too with its first ever LTE-Advanced smartphone, the Samsung Galaxy S4 LTE-A, launched in late June. The new Galaxy S4 LTE-A, utilizing LTE carrier aggregation, will offer data rates up to 150 Mbps, thereby offering twice the current LTE speeds.

Qualcomm's Snapdragon 800 processors are designed to hold up LTE carrier aggregation without affecting the battery life. Snapdragon 800 is expected to go into commercial position soon and is expected to feature in 200 phones and tablets to be released later this year. The company is well ahead of competition as the MDM 9X25 and Snapdragon 800 chipsets are its third generation of LTE modems, while most of the competitors are still struck with the first generation. Being well ahead of competition and the only provider of LTE-Advanced features, Qualcomm is poised to perform in the growing smartphone market.

The only close competitor to Snapdragon 800 is NVIDIA (NVDA)'s fourth generation Tegra chips, Tegra 4i, which are expected to be launched in the beginning of next year, and Broadcom's (BRCM) recently launched BCM21892. The Tegra 4i will be half the size of Snapdragon 800 processor and BCM21892 is currently the smallest LTE 4G enabled chip in the industry. The smaller size of the chips makes them cheaper to produce and more energy efficient. However, Qualcomm's earlier launch of its Snapdragon 800 processor with an LTE –Advanced feature places it in an advantageous position, as there is no other competing product.

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However, NVIDIA's attempt to speed up the launch of Tegra 4i delayed the launch of Tegra 4, which forced the company to continue with Tegra 3, a comparatively outdated product compared to its competitors. The delay cost the company a number of design wins too. Further, Tegra 4i does not offer any great hardware upgrades from the Tegra 3, which might cost the company heavily, as in the tech sector, innovation is the key to success.

On the other hand, Broadcom's chip forms an integral part in both Samsung and Apple's devices, which provides certainty to its future revenue. Further, it is continuously putting tremendous efforts into forming partnerships with local carriers and handset makers in emerging markets, especially China. There is no doubt of the potential that China offers, and going forward Broadcom is expected to be benefited from its operations there.

What About 5G?

Broadcom is the first company to initiate a 5G WiFi combo chip for smartphones, tablets and other mobile devices. The company is bidding on the 802.11ac standard for every chief WiFi product segment. The 5G technology offers significant increases in WiFi coverage and transfer speeds, with considerably less power consumption, which enhances the efficiency to about six times the current levels. Entry into the 5G market should work in Broadcom's advantage in the long run, making it a good bet.

Final Words

With a short-term view, if we see Qualcomm's performance year to date, its stock price has remained almost flat, but it has provided opportunities to gain from stock price volatility. Even after it reported its last earnings, its shares fell over 10% in two days despite strong performance by the company, which I believe was a good buying opportunity keeping in view the growth that Qualcomm offers in the long term.

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Monday, April 28, 2014

Homeland Security: Better avoid Internet Explorer

SAN FRANCISCO – The U.S. Department of Homeland security is advising Americans not to use the Internet Explorer Web browser until a fix is found for a serious security flaw that came to light over the weekend.

The bug was announced on Saturday by FireEye Research Labs, an Internet security software company based in Milpitas, Calif.

"We are currently unaware of a practical solution to this problem," the Department of Homeland Security's United States Computer Emergency Readiness Team said in a post Monday morning.

It recommended that users and administrators "consider employing an alternative Web browser until an official update is available."

The security flaw allows malicious hackers to get around security protections in the Windows operating system. They then can be infected when visiting a compromised website.

Because the hack uses a corrupted Adobe Flash file to attack the victim's computer, users can avoid it by turning off Adobe Flash.

"The attack will not work without Adobe Flash," FireEye said. "Disabling the Flash plugin within IE will prevent the exploit from functioning."

While the bug affects all versions of Internet Explorer six through 10 it is currently targeting IE9 and IE10, FireEye stated.

The attacks do not appear to be widespread at this time. Microsoft said it was "aware of limited, targeted attacks that attempt to exploit" the vulnerability.

These are called "watering hole attacks," said Satnam Narang, a threat researcher with computer security company Symantec in Mountain View, Calif..

Rather than directly reach out to a victim, the hackers inject their code into a "normal, everyday website" that the victim visits, he said. Code hidden on the site then infects their computers.

"It's called a watering hole attack because if you're a lion, you go to the watering hole because you know that's where the animals go to drink."

FireEye said the hackers exploiting the bug are calling their campaign "Operation Clandest! ine Fox."

Microsoft confirmed Saturday that it is working to fix the code that allows Internet Explorer versions six through 11 to be exploited by the vulnerability. As of Monday morning, no fix had been posted.

Microsoft typically releases security patches on the first Tuesday of each month, what's known as Patch Tuesday. The next oneis Tuesday, May 6. Whether the company will release a patch for this vulnerability before that isn't known.

About 55% of PC computers run one of those versions of Internet Explorer, according to the technology research firm NetMarketShare. About 25% run either IE9 or IE10.

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Computer users who are running the Windows XP operating system are out of luck. Microsoft discontinued support of the system on April 8.

Symantec is offering XP users tools to protect themselves, which it has made available on its blog.

Sunday, April 27, 2014

8 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends

The S&P 500 Dividend Aristocrats is the most recognized list of dividend stocks. The Dividend Aristocrats index is designed to measure the performance of S&P 500 constituents that have followed a policy of consistently increasing dividends every year for at least 25 consecutive years.

Dividend Aristocrats exhibit the following characteristics:

- They are a member of the S&P 500.
- The index is equally weighted with constituents re-weighted quarterly.
- List is reviewed and updated annually in December.

Make no mistake, Dividend Aristocrats are the blue-blood of dividend growth stocks. When building your core portfolio, this list is where you want to start your evaluation. If you want dividend growth, these stocks have been there, and done that - for decades.

This week, I screened my dividend growth stocks database for Dividend Aristocrats with a yield greater than 3% and have increased their dividends for at least 35 consecutive years. The results are presented below:

McDonald's Corporation (MCD) is the largest fast-food restaurant company in the world, with nearly 34,500 restaurants in 119 countries. The company has paid a cash dividend to shareholders every year since 1976 and has increased its dividend payments for 37 consecutive years. Yield: 3.1%

Sysco Corporation (SYY) is a large distributor of food and related products, primarily to the foodservice or food-away-from-home industry. The company has paid a cash dividend to shareholders every year since 1970 and has increased its dividend payments for 42 consecutive years. Yield: 3.1%

Nucor Corporation (NUE) is the largest minimill steelmaker in the U.S., Nucor has one of the most diverse product lines of any steelmaker in the Americas. The company has paid a cash dividend to shareholders every year since 1973 and has increased its dividend payments for 40 consecutive years. Yield: 3.2%

Consolidated Edison Inc. (ED) is an electric and gas utility holding company that serves parts of New York! , New Jersey and Pennsylvania. The company has paid a cash dividend to shareholders every year since 1885 and has increased its dividend payments for 40 consecutive years. Yield: 3.2%

The Clorox Company (CLX) is a diversified producer of household cleaning, grocery and specialty food products is also a leading producer of natural personal care products. The company has paid a cash dividend to shareholders every year since 1968 and has increased its dividend payments for 38 consecutive years. Yield: 3.3%

Kimberly Clark Corp. (KMB) is a global consumer products company's producing tissue, personal care and health care products. Its brands include Huggies, Pull-Ups, Kotex, Depend, Kleenex and Scott. The company has paid a cash dividend to shareholders every year since 1935 and has increased its dividend payments for 41 consecutive years. Yield: 3.3%

Cincinnati Financial Corp. (CINF) is an insurance holding company that primarily markets property and casualty coverage. It also conducts life insurance and asset management operations. The company has paid a cash dividend to shareholders every year since 1954 and has increased its dividend payments for 53 consecutive years. Yield: 3.3%

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Leggett & Platt Inc. (LEG) makes a broad line of bedding and furniture components and other home, office and commercial furnishings, as well as products for non-furnishings markets. The company has paid a cash dividend to shareholders every year since 1939 and has increased its dividend payments for 41 consecutive years. Yield: 3.6%

As with past screens, the data presented above is in its raw form. Some of the the companies would be disqualified for poor dividend fundamentals. However, some of the others may be worth additional due diligence.

My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 230+ compan! ies that ! I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.

Full Disclosure: Long MCD, SYY, NUE, KMB, CINF, LEG, ED in my Dividend Growth Portfolio. See a list of all my dividend growth holdings here.

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Saturday, April 26, 2014

Supervalu Should Now Look Valuable Enough

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The growing popularity of dollar stores and mass market retailers has affected the existence of traditional grocery stores. For example, dollar stores such as Dollar General provided most of the products at the lowest possible prices, which forced cash strapped customers to move from other grocers to such dollar stores. In fact, strategies such as providing items for $1 or less have been significant to its growth.

However, grocer Supervalu (SVU) made significant efforts to combat competition and stage a comeback. Its recently reported fourth quarter results surprised the investors as it beat analysts' expectations.

The earnings beat

Revenue climbed 1.4% to $3.95 billion, over year-ago quarter. The top line was driven by higher demand for its products as well as a rise in store traffic. In fact, Supervalu's same store sales grew 2.1% during the quarter for its Save-A-Lot store network. Also, corporate stores witnessed identical store sales growth of 3.5%.

The retailer performed well not only on the top line, but also on the bottom line. Its earnings jumped to $0.18 per share, as against loss in the prior year's quarter. This increase in bottom line came in mainly due to cost reduction strategies undertaken by the company.

Existing strengths

The grocer's biggest strength is its network of Save-a-Lot stores which concentrates on providing competitive prices to entice customers. It adopted the "fair price promotion strategy" last year which is helping the retailer to overcome competitive pressures.

Also, "fresh from farm" department is doing well since customers have become health conscious and look for fresh products instead of stored ones.

Moreover, Supervalu's restructuring efforts have been commendable. It discontinued five of its business units last year in order to remain focussed on its profitable Save-A-Lot segment. Additionally, the company cut 1,100 jobs last year, which helped in controlling costs and increase profits.

The future

Since Supervalu has been able to revive its business, it now plans to expand its presence. It plans to open 65 new stores during this year. Hence, Supervalu stores will be available for customers' every need.

The grocer has changed store layouts as well as improved its merchandise sets at its Save-A-Lot stores. It has adopted horizontal merchandising sets and has displayed value investments in such a way that it is noticeable to customers.

Further, the company plans to introduce the new coupon-to-card program which enables Supervalu customers to download and get access to their coupons through their phones. Therefore, it makes it easier for customers to access digital coupons as well as link it to their card.

Conclusion

Customers will always be calculative about their spending. Hence, offering lower price for basic goods is a good strategy to attract customers. Supervalu has been able to implement this strategy at the right time, enabling it to stage a comeback. With the efforts of reducing costs and attracting people through various promotional efforts, the grocer should be able to fare well. Moreover, it plans to expand its store network in the current year. However, it faces stiff competition from dollar stores and other big box retailers. Therefore, one should wait till the time is right to get into this growing company.

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Wednesday, April 23, 2014

Survey: More employers plan to hire new college…

Congratulations, college graduates. You're in luck: Employers are considering hiring you, a new survey reveals.

About 57% of employers say they plan to hire new college graduates this year, up from 53% last year and 44% in 2010.

Most companies (61%) will be offering grads the same starting pay as they did last year; 56% expect to pay them an annual salary that's less than $40,000.

These findings are based on a survey of 2,138 hiring managers and human resource professionals from different sized employers representing multiple industries. The survey was conducted by Harris Poll in February and early March for CareerBuilder, which is jointly owned by the Tribune Co., The McClatchy Co. and USA TODAY parent Gannett Co.

The fact that more companies are hiring new grads "is positive news," says Rosemary Haefner, vice president of human resources for CareerBuilder. It's not surprising that most beginning salaries are about the same as last year, she says. Only 30% of companies expect their initial offers to graduates will be higher this year than last; 9% expect a decrease in starting pay.

Employers say they'll offer these starting salaries:

• 26% say they'll pay new graduates less than $30,000.

• 30%, $30,000 to less than $40,000

• 20%, $40,000 to less than $50,000

• 24%, 50,000 and higher.

If you're a business major, you may have another reason to celebrate: 39% of employers want to hire business majors. That's followed by 28% who want computer and information sciences majors; 18%, engineering; 14%, math and statistics; 14%, health professions and related clinical services; 12%, communications technology; 11%, engineering technologies; 10%, liberal arts and sciences as well as general studies and humanities; 7% education; 7%, science technologies; 7%, communication and journalism.

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About 41% o! f employers don't think recent graduates are adequately prepared for roles in customer service, Haefner says. "A lot of customer service is about troubleshooting, problem solving and making sure the experience for the customer is positive, and that may take a lot more skill than new graduates have," she says.

Most employers say new college graduates are ready for the real world, but about a quarter (24%) don't believe colleges and universities have prepared students for positions in their companies.

Of those employers who have doubts about recent grads, the most common concerns include: 53% say there is too much emphasis on book learning instead of real-world learning; 35% say their company needs a blend of technical skills as well as soft skills from a liberal arts degree; 26% say entry level jobs are more complex today than they used to be; 16% say there is not enough focus on internships and apprenticeships; 16% say technology is changing too quickly for academics to keep up; 10% say not enough students are graduating with the degrees their company needs.

"These companies may think the graduates are academically strong, but they aren't sure they are prepared for the complexity of today's jobs," Haefner says. "Companies are asking these questions about graduates: Are they just book smart? Or will they have street smarts as well? The marketplace is evolving at a faster pace than it did in the past, and academia may not be keeping pace with technology that businesses need."

One of the take-away messages of the survey is that employers are expecting more of their employees in entry-level jobs, says Prasanna Tambe, an assistant professor at the New York University Stern School of Business, and one of the authors of The Talent Equation. Those first jobs are more complex than they used to be, requiring more industry acumen and technical skills, he says.

In fact, for many jobs today, it's important to have a blend of interpersonal and technical skills, Tambe says. It's hard to g! et all th! at from classes in college. A lot comes from hands-on work experience.

Tuesday, April 22, 2014

Zynga is Just Gettin' Started (ZNGA)

While the jury may still be out on its long-term longevity, if you're looking for quick trade, then Zynga Inc. (NASDAQ:ZNGA) may be a pretty good bet. Why's that? Though the stock got crushed in March, falling from a peak of $5.89 to a low of $3.79 hit last week, it's all part of a normal pattern for ZNGA, and that pattern suggests the game-software maker's stock is poised for a much bigger pop than what we've seen so far.

Just for the record, yes, this is the same company behind popular online games like Farmville and Words With Friends. Zynga is also the company that former Microsoft executive Don Mattrick is now heading. ZNGA is also the company that hasn't turned an operating profit ever. Yet, Zynga Inc. is the same company that is projected to swing to a profit this year on the heels of a 9.4% improvement in revenue. Next year should be even better on the sales front, by 17%. That should lead to a profit of 5 cents per share of ZNGA.

It's all encouraging, but none of those reasons are the reasons a newcomer might want to buy Zynga today. No, the reason you might want to step into ZNGA here and now is the chart - we've gotten some key clues that a rebound is underway.

The daily chart below tells part of the story. Last Tuesday, ZNGA made a long-tailed dragonfly doji, suggesting the selling effort had fully exhausted itself and we had begun the transition into a bullish mode. Equally telling is that the reversal unfurled right as Zynga shares brushed the key 200-day moving average line (green). The follow-through in the meantime seals the deal.

It wasn't just the short-term pivot on the daily chart that's pointing the stock even higher, however. When we zoom out to a weekly chart of Zynga Inc,. we can see this stock's been bouncing around inside a rising/bullish trading range since mid-2013, and the low from last week touched on the lower edge of that range. Right on cue, Zynga started to rally again, yet there's still a ton of room to tap into before a ceiling is found.

No, it's got nothing to do with the fundamentals. That doesn't mean we can't rent ZNGA for a few weeks and scrape off a solid double-digit gain for the effort, however.

Want to learn more about Zynga? It's one of the SmallCap Network Elite Opportunity's current trades. Click here to learn more about the EO's coverage of ZNGA, and how you can access it for free for two weeks.

Monday, April 21, 2014

General Electric: A Lot to Like, Citigroup Says

Last week, General Electric (GE) gained 3.8%–and drew near-universal kudos from the analyst community–after beating earnings forecasts. Today, Citigroup joined the chorus of praise for General Electric.

Associated Press

Citigroup’s Deane Dray and team explain what they liked about General Electric’s financial results:

There was much to like in Buy-rated GE's 1Q14, nicely distancing itself from the disappointments last quarter and boosting confidence in its 2014 operating framework. Among the feel-goods were a sector-best (so far) 8% organic growth, 50 bps margin expansion, and nice progress in the cost-out Simplification initiative. Looking ahead, mgmt signaled two new capital allocation catalysts: (1) more divestitures are in the works and (2) it is now pursuing acquisitions bigger than the self-imposed $1-$4 bil bolt-on range that it has been operating under for the past two years. We expect this means GE will consider $7-$9 bil deals, but we don't see this flexing up in deal-size impinging on the ongoing investor-friendly capital deployment to dividends and buybacks. We consider GE to be well-positioned as a "Control Your Own Destiny" industrial and as a mostly unloved value story. The record $245 bil backlog gives it nice earnings visibility, and the ongoing mix shift to 70/30 industrial/finance should drive multiple expansion.

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General Electric’s earnings could also be a good sign for Actuant (ATU), United Technologies (UTX) and Honeywell International (HON), Dray says.

Shares of General Electric have gained 0.2% to $26.63 at 2:03 p.m., while Actuant has fallen 0.6% to $34.68, United Technologies has dipped 0.2% to $118.33 and Honeywell International is unchanged at $93.10.

The Limited Stock With Unlimited Potential

Retail is a fickle place for investors, where fashions go in and out of favor in quick succession. But for those who are comfortable with the ups and downs of the industry, owning what used to be The Limited stock -- the company recently changed its corporate name from Limited Brands to L Brands (NYSE: LTD ) -- has been a long-term winning strategy, with the stock having posted strong returns both since the financial crisis in 2009, and over the past two decades. Let's take a closer look at what's happened with L Brands, in general, and with The Limited, in particular, recently.

What's behind shares of L Brands?
The key thing to realize is that L Brands no longer owns The Limited. In 2010, L Brands sold The Limited to the private equity company Sun Capital Partners, with Sun taking control of the then-struggling 200-plus-store chain. Sun still owns The Limited, with the chain having grown to 257 locations in the U.S. as of April.

What's amazing in hindsight is how long it took for L Brands to jettison the word "Limited" from its name. Now, the company's main assets are its Victoria's Secret and Bath & Body Works stores, with other companies like the White Barn Candle brand and Canada's La Senza playing a secondary role, and bringing in just 10% to 15% of L Brands' total revenue.

How has L Brands fared?
Lately, L Brands has done a good job of keeping sales moving upward. In May, the company recorded 3% gains in same-store sales, overcoming the headwinds that some other retailers faced in what was a relatively cold spring. With a stranglehold in the intimate apparel market, Victoria's Secret gives L Brands almost unlimited potential, both from store sales as well as catalog offerings.

But rivals have seen the value of the lingerie business and are taking aim at Victoria's Secret's success. American Eagle Outfitters (NYSE: AEO ) has had substantial success with its Aerie lingerie brand, which has helped keep American Eagle's overall results relatively strong. Moreover, Aerie has done what L Brands hasn't been able to do: post strong success in its Internet-based sales.

Another up-and-coming competitor is Juicy Couture, a brand of Fifth and Pacific (NYSE: FNP ) , which plans to launch a new line of intimate apparel early next year. For Fifth and Pacific, getting Juicy Couture to perform better would mark the final step in its overall turnaround, with the company's other two major brands having already seen gains in comps recently.

What's ahead for L Brands?
Perhaps the biggest challenge for the company will be to choose a permanent name. Having taken so long to jettison the out-of-date impression of still being The Limited stock, L Brands is still a complete misnomer, given that neither of its major brands has an L anywhere in their names. As silly as it sounds, if management can't move more quickly on something as simple as a corporate name, how well can it fare with more crucial business decisions?

One thing is certain: Shares of L Brands won't go back to being called The Limited stock anytime soon, barring an unlikely reacquisition of the old Limited stores. Given the potential within Victoria's Secret, that's not a bad thing, as the upside for shareholders is almost unlimited if the company can improve its execution, and make the most of its strong brand reputation.

The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

Click here to add L Brands to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Sunday, April 20, 2014

BigBrain Will Pay BigDividends for Health

The scientific community has amassed incredible amounts of genetic data for various brain-related diseases in the last decade -- and the genomic hoard grows larger every year. Looking for genomic links between brain signals and autism? There's a study for that. How about important markers for Alzheimer's disease? There's an online database for that, too. One problem: We still aren't sure exactly how these molecular relationships impact the onset or severity of disease. As a result, there is still no way to objectively diagnose brain diseases, which makes misdiagnoses common, and cures seem like pipedreams.

Enter The Human Brain Project, a 1 billion euro project half-funded by the European Commission that aims to use supercomputing to recreate the human brain. It may seem like a logistical nightmare, but that is kind of the point. Creating a virtual human brain from scratch will push scientists to uncover every minute detail of every neural pathway. The windfalls will be huge, although breakthroughs are already unfolding. A sub-project named BigBrain created a 3-D digital model of a human brain with 50 times the resolution of the previous best model. Get ready for some major advances in health.

What's the BigDeal?
BigBrain divided an actual human brain into 7,400 slices, stained each to highlight various cell types, scanned them to a computer, and reconstructed a digital copy that will be made available to the public. It may sound creepy, but researchers will now have a way to peer into each region of the brain in unprecedented detail.

Different parts of brain are connected with various fiber pathways. The strength of these connections is believed to play a role in neurological diseases. Image courtesy INSERM-CEA (France) and the Human Brain Project.

Autism studies will now be able to isolate brain regions associated with social interaction and facial recognition, such as the fusiform gyrus, to better understand the link between brain wiring and severity on the spectrum. Studies of neurodegenerative diseases, such as Alzheimer's, will be able to look at brain regions associated with long-term memory. Addictive behaviors surrounding food or drugs could also be better understood -- leading to more successful treatments. We could even better understand the brain architecture of serial criminals, perhaps one day leading to a treatment that makes repeat offenders a thing of the past. The possibilities are truly endless.

BigPharma implications
Pharmaceutical companies have swung for the fences on several neurological disease medications, but have mostly whiffed. Again, this isn't for a lack of effort so much as a lack of knowledge. Could BigBrain change the way firms approach drug discovery by yielding new molecular targets?

A nerve cell isolated by Technical University of Madrid for the Human Brain Project.

There may never be a chemical cure for autism, but atypical antipsychotic medications are the best current option for alleviating behavioral symptoms associated with the spectrum disorder. The problem is that they blanket dopamine and serotonin pathways to do so, which comes with a fair share of unintended side effects. Johnson & Johnson (NYSE: JNJ ) markets Risperdal, Eli Lilly (NYSE: LLY ) markets Zyprexa, and Bristol-Myers Squibb (NYSE: BMY ) markets Abilify. Each treatment does mark an improvement over first generation drugs called typical antipsychotics. Unfortunately, we can do much better. Perhaps BigBrain and a flurry of generic competition facing each medication will lead to big advances for autistic individuals.

Johnson & Johnson and Eli Lilly could also use BigBrain to reset their approach to Alzheimer's. Both have encountered setbacks in phase 3 trials for Alzheimer's drugs, although no drug has proven successful in late-stage development, to date. Researchers now suspect that targeting beta amyloid plaques -- the approach taken by Big Pharma -- only comprises one piece of an effective treatment. What better way to find other molecular targets and brain relationships than to sift through 7,400 slices of a human brain?

BigBrain could also lead to future obesity treatments. Several studies have shown that deep brain stimulation, via surgically implanted electrodes, can result in weight-loss in lab animals. It works by disrupting the brain's habit circuitry. Similar procedures have actually been performed on humans with alcoholism to alter the neurological pathways responsible to addiction. You may feel more comfortable taking an oral therapy, such as Belviq from Arena Pharmaceuticals (NASDAQ: ARNA ) or Qsymia from VIVUS (NASDAQ: VVUS ) , than having your cranium cracked open. That is understandable. Both Belviq and Qsymia work to chemically subdue appetite pathways, such as serotonin 2C receptors. Implanted electrodes would work in a similar fashion, albeit in a more permanent way. Will Arena or VIVUS be marketing deep brain stimulation therapy for obesity in 20 years? Perhaps, but they need to figure out how to successfully market their oral therapies first.

Foolish bottom line
These are just a few of the doors that BigBrain opened. The project itself is actually pretty simple when you think about it: Take a human brain, slice it up, and create a virtual montage of the pieces. Nothing novel was needed to complete the task, just the idea to do it in the first place. Now, clinical researchers and neuroscientists finally have a floor for their research. If the Human Brain Project is as successful as it promises to be, it will be a long time before we hit a ceiling.

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Saturday, April 19, 2014

American Investors Bullish on U.S. Equities

Eighty-six percent of affluent U.S. investors were optimistic about investments, according to a Legg Mason survey published this week.

Seventy-four percent of investors thought that U.S. equities offered the best opportunities in 2014.

Respondents were less enthusiastic about international equities, favored by 53% of those surveyed, followed by real estate (38%), gold or other precious metals (33%), U.S. bonds (31%), cash (28%), nontraditional investments (24%) and international bonds (19%).

These were the average asset allocation among affluent investors in the survey:

Although the majority of investors said they would maintain their asset allocation over the next 12 months, 25% said they would increase their allocation to equities and another 25% said they would increase their allocation to cash.

“There is a promising amount of optimism among U.S. investors, and much of it is focusing on U.S. equities,” Matthew Schiffman, managing director and head of global marketing at Legg Mason Global Asset Management, said in a statement.

“This is consistent with our global research conclusions, and bodes very well for the U.S. equity markets should investor optimism ring true.”

Northstar Research Partners conducted an online survey for Legg Mason in December and January of 4,320 investors with a minimum of $200,000 in assets in 20 countries, including 500 respondents in the U.S.

The survey found women in the U.S. to be more conservative than men in their asset allocations.

Women allocated 38% to equities, versus 43% for men; 24% to cash or cash equivalent, versus 20% for men; and 22% to fixed income, versus men’s 20%.

Legg Mason noted that the equity allocation among investors 65 to 75 years old was greater than that of investors aged 55 to 64, and not far from the equity allocation of investors aged 40 to 54 years of age.

Sources of Anxiety and Opportunity

Forty-four percent of investors in the survey feared that low U.S. economic growth could derail investment markets.

Thirty-six percent worried about the possible deleterious effects of inflation, 34% about low interest rates/yields, 32% about reduced economic stimulus in the U.S. and 31% about an increasing tax burden.

More than three-quarters of respondents said they invested on average 14% of their portfolio internationally. Younger investors, in the 40-to-54 age group, allocated 17% of assets to international investments, while those older than 65 allocated just 10%.

Emerging markets attracted 57% of those who invested internationally, or would consider doing so over the next 12 months.

They said these countries offered the best opportunities:

Legg Mason found that the role of income continued to be an important component of investor portfolios and investment strategies, as 58% of U.S. investors said income-generating investments were a priority.

The gap between the 8.3% rate of return investors sought to receive from their income-producing investments and the 6.4% real rate of return they received narrowed 50 basis points compared with 2013. U.S. Versus the World

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American investors had a far larger average equity allocation, 41%, than investors in any of the other 19 surveyed countries (Australia, Belgium, Brazil, Chile, China, Colombia, France, Germany, Hong Kong, Italy, Japan, Mexico, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, U.K.).

British investors were second with an average equity allocation 31%, followed Swedes at 29% and Australians at 26%.

U.S. investors appeared to have a less “aggressive” overall risk tolerance when investing than their counterparts in other countries.

Thirty-five percent of American respondents considered themselves aggressive, compared with 38% of Chinese investors and 37% of Swedish ones.

The average 8.3% rate of return U.S. investors were seeking on their income-producing investments fell far short of the top five countries.

On average, investors in Colombia are looking for 11%, in Mexico 10.5%, in Chile 10.4%, in China 10.4% and in South Korea 9.5%.

Friday, April 18, 2014

Cybersecurity gets the SEC's attention as agency plans to query advisers on safeguards

SEC, Finra, Heartbleed, Internet security, data breaches, Target, Neiman Marcus, advisers

At a time when an online threat is panicking Internet users, the Securities and Exchange Commission has provided financial advisers with a detailed checklist of what it expects firms to provide in terms of cybersecurity protection.

The SEC on Tuesday posted a risk alert that outlines the areas it will assess in an upcoming examination of more than 50 registered investment advisers and broker-dealers.

The seven-page document contains 28 requests that cover an advisory firm's cybersecurity governance, ability to protect its networks and client information, ability to assess risks associated with remote client access and fund transfers and its use of vendors and other third parties.

The SEC also wants to know how a firm detects security breaches and what its experience has been with such incidents.

“Every financial firm in the U.S., and probably in the world, should spend some time reviewing [the alert],” said John Reed Stark, managing director of Stroz Friedberg, a digital risk management firm. “It is the prism through which the SEC is viewing cybersecurity. Firms should take advantage and use this inside information to prepare for the regulatory onslaught that is clearly beginning.”

Mr. Stark on what the SEC is looking for from firms in cybersecurity examinations.

The tone of the document shows a change in the SEC's thinking, according to Mr. Stark, former head of the agency's Internet enforcement office. It is looking at cyberpredators as a holistic danger.

“If a firm is attacked, it's no longer just a threat to the firm's customer, it's a threat to the global financial marketplace,” Mr. Stark said.

He participated in a daylong cybersecurity forum at the SEC on March 26. SEC Chairman Mary Jo White attended almost the entire event. The Financial Industry Regulatory Authority Inc., the broker-dealer regulatory, also plans to conduct cybersecurity examinations this year.

The increasing interest in cybersecurity comes as anxiety about the “Heartbleed” bug is sparking a worldwide rush to change passwords as retailers such as Target and Neiman Marcus have suffered massive customer data breaches.

One of the SEC's goals in its examinations is to acclimate itself to the current state of cybersecurity, according to Amy Lynch, president of FrontLine Compliance, a consulting firm.

“It looks very much like a fact-finding mission for the SEC,” Ms. Lynch said. “They want to learn how firms are utilizing technology and the controls they have in place around it.”

Even though the SEC is going to examine only a handful of firms, it is using the sweep to send a message about what it views as best practi! ces, said Dan Bernstein, director of research and development at MarketCounsel, a compliance consulting firm.

The result is not going to be a specific set of instructions to follow. Cybersecurity safeguards will depend on how much access firms have to client information and how they manage it, Mr. Bernstein said.

(See also: American Funds urges new client passwords over Heartbleed)

“It's going to be facts- and circumstances-based,” Mr. Bernstein said. “Some firms will need more protections than others. The advisers that have a strong privacy policy, a data-protection plan, an identity theft program and a business continuity plan will be in strong shape.”

Larger firms will have an easier time passing muster than smaller firms, according to Ms. Lynch.

“Where it gets murky is for midsize and smaller firms that don't have robust IT departments,” Ms. Lynch said.

Cybersecurity is even more important in the financial advice industry than in retail, Mr. Stark said. If a department store is breached, customers likely will come back. They may not be as loyal to an adviser because the attack hits a more vulnerable place — their money.

“If you get a call from your broker or investment adviser that your account has been compromised, you're going to seriously contemplate transferring your assets elsewhere,” Mr. Stark said.

Thursday, April 17, 2014

Earnings Scheduled For October 7, 2013

Tower Group International (NASDAQ: TWGP) is expected to post a Q3 loss at $1.04 per share on revenue of $428.87 million.

Posted-In: Earnings scheduleEarnings News Pre-Market Outlook Markets

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Wednesday, April 16, 2014

Don't Bank On a Big Dow Climb Today

The Dow Jones Industrial Average (DJINDICES: ^DJI ) is on the decline again today as investors try to sort out the meaning of conflicting economic data. With Wall Street's main focus continuing to fall on the Fed's next move, uncertainty reigns supreme. Just before 11:30 a.m. EDT, the index was down 117 points, with little upward momentum in sight.

Show me the data
If you're watching for signs in the economic data releases today that might help you determine the Fed's approach to continuing its stimulus program, good luck.

With a disappointing jobs report from ADP showing only 135,000 new jobs were added to the private sector in May, falling below the expected 167,000, you may believe this data points to the Fed maintaining the current rate of bond repurchases. Since the labor market was to be the prime recipient of the stimulus' aid, a lack of forward momentum in hiring could signal that we're not on the right track yet.

But the recent gains in the labor market, spurring on many members of the Federal Open Markets Committee to support a cut in the current plan, has been mainly in the slowing of job cuts -- not hiring. Though it's clear that hiring needs to pick up for a full recovery to start, that hasn't been the case so far, and it hasn't stopped increasing support for curbing the stimulus plan.

Housing is the second piece of the recovery puzzle so far, with continued signs that the housing market is steadily rolling along. But this morning's MBA Purchase Applications report showed the second week of declines in new financing applications, with an 11.5% drop from last week. The drops have largely been driven by rising interest rates -- surely a sign that the Fed shouldn't allow rates to increase from the near-zero levels we've been enjoying.

But the big decreases have also been heavily focused in the refinancing segment of the applications -- a commonsense occurrence when you factor in higher rates. Refinancings accounted for 68% of all the application activity. Though this week did see a decline in new purchase activity, last week's report showed an increase. Pressures from a declining inventory of homes and subsequent price increases may be the biggest contributors to this week's drop.

Taking it to the banks
Both of the Dow's bank component stocks are dealing with some old business that they thought they had resolved.

JPMorgan (NYSE: JPM ) is also down in the dumps today, with an Alabama sewer debacle soiling its chances of reaching positive territory. The bank has agreed to forgive $842 million in debt owed to it by Jefferson County, Ala., from derivatives and swaps the county purchased to finance a new sewer system before the financial crisis. Some county-employee corruption and a financial crisis later, the county had to declare bankruptcy in 2011. Though JPMorgan had already agreed to a $722 million settlement with the SEC over its involvement with the Jefferson financing, the new agreement with creditors will allow the county to emerge from bankruptcy.

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Bank of America (NYSE: BAC ) headed into the third day of its hearing over a two-year-old settlement with investors for a batch of mortgage-backed securities that turned sour. The $8.5 billion on the table is being objected to by some large names, including AIG (NYSE: AIG ) , which objects to the size of the settlement. AIG is basing its argument on another insurer's experience, when MBIA reached a settlement over MBS's for $0.60 on the dollar. If that amount became the basis for B of A's case, the price tag could reach $60 billion. The bank is arguing that it had the right to put its Countrywide segment into bankruptcy instead of offering the current amount to investors, but instead chose to offer a deal.

Outside the Dow, Citigroup (NYSE: C ) is also down following its return to the courtroom over a deal gone sour. Private equity firm Terra Firma claims that the bank lied about a second bidder in its purchase of publisher EMI, driving the price up unneccessarily. Though the case had been heard in court before, and Citi had prevailed, a federal appeals judge overturned the ruling based on improper jury instructions. The case could cost the bank up to $8.3 billion.

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Monday, April 14, 2014

Hot Computer Hardware Companies To Buy For 2014

Hot Computer Hardware Companies To Buy For 2014: Steel Excel Inc (SXCL)

Steel Excel Inc., formerly ADPT Corp., incorporated in 1981, is primarily focused on capital redeployment and identification of new business operations. The identification of new business operations includes, but is not limited to, the oilfield servicing, sports, training, education, entertainment and lifestyle businesses. The Company operates in two segments: oilfield servicing and sports-related segment. During the year ended December 31, 2011, the Company acquired two sports-related businesses and one oilfield servicing business. On June 27, 2011, the Company acquired Baseball Heaven LLC and Baseball Cafe, Inc. On August 15, 2011, the Company acquired The Show, LLC. On December 7, 2011, the Company acquired Rogue Pressure Services, LLC. On February 9, 2012, the Company acquired Eagle Well Services, Inc. In May 2012, the Company acquired Sun Well Service, Inc. Effective December 16, 2013, Steel Excel Inc acquired Black Hawk Energy Services Inc, a provider of oil and gas field services.

The Company's oilfield servicing segment provides services in horizontal drilling and hydraulic fracturing. Services include snubbing services (controlled installation and removal of all tubulars - drill strings and production strings) in and out of the wellbore with the well under full pressure, flowtesting, and hydraulic work over/simultaneous operations (allows customers to perform multiple tasks on multiple wells on one pad at the same time). The Company's sports-related services segment provides services related to marketing and providing baseball facility services, including training camps, summer camps, leagues and tournaments, concession and catering events and other events and related Websites. In addition, the Company outfit little league baseball and softball players and coaches in official major league baseball u! niforms.

Advisors' Opinion:

[By Geoff Gannon]
1. Steel Excel (SXCL)
2. FormFactor (FORM)
3. Imation (IMN)
4. Tuesday Morning (TUES)
5. Pacific Biosciences (PACB)
6. Maxygen (MAXY)
7. Westell (WSTL)
8. Volt Information Sciences (VISI)
9. Yasheng Group (YHGG)

source from Top Stocks Blog:http://www.topstocksblog.com/hot-computer-hardware-companies-to-buy-for-2014.html

10 Best Income Stocks To Invest In 2014

10 Best Income Stocks To Invest In 2014: ANA Holdings Inc (ALNPF)

ANA HOLDINGS INC., formerly All Nippon Airways Co., Ltd., is a Japan-based airline holding company. Its Air Transportation segment is engaged in the air transportation business, the provision of various services at airports, the provision of reservation services via telephone, the freight express business, and the maintenance of aircrafts in domestic and overseas markets. The Traveling segment plans and sells tour packages under the brand names ANA Hello Tour and ANA Sky Holiday, it also offers services to travelers at arrival areas and sells travel products and air tickets. The Others segment involves in the information communication, trading and merchandise business, building management, logistics and airplane fixture repair business, and hotel operation. On March 4 and March 5, 2013, it fully acquired all shares of one and two consolidated subsidiaries through stock swap, respectively, made them become wholly-owned subsidiaries. Advisors' Opinion:

[By Daniel Inman]
In Tokyo, ANA Holdings (JP:9202) (ALNPF) declined 4.7% after the airline lowered its 2013 fiscal-year net profit forecast by 65% on higher fuel costs and slow service expansion because of delays in Boeing (BA) 787 Dreamliner deliveries.

source from Top Stocks Blog:http://www.topstocksblog.com/10-best-income-stocks-to-invest-in-2014.html

Saturday, April 12, 2014

Don Phillips to Step Down as Head of Morningstar's Research Group

Don Phillips will be stepping down as head of Morningstar’s Research group after the first of the year, the company announced Tuesday.

Haywood Kelly, currently head of equity, credit and structured credit research, will assume Phillips’ responsibilities as global head of research, effective Jan. 1, 2014. Phillips will remain a managing director as well a member of the board of directors, a position he’s held since 1999.

Both Kelly, 44, and Phillips, 51, will report to Joe Mansueto, Morningstar’s founder, chairman and CEO.

Phillips said in a statement that he’s “had a wonderfully rewarding career and believes passionately in Morningstar’s mission of helping investors.” Said Phillips: “I told Joe that I’d like to step back, but I still want to contribute to Morningstar’s success. He has always been incredibly supportive, and this time was no exception. Our global research team is second to none. Haywood has done a terrific job with our equity, corporate credit, and structured credit teams and has overseen our fund research in the past. He’s an excellent choice for this role, and I look forward to continuing to work closely with him.”

Mansueto added in the same statement that “Don is a great friend and colleague. He joined Morningstar as our first mutual fund analyst in 1986, two years after I started the company. His passion for investing is the same today as it was 27 years ago.”

Added Mansueto: “Don has worked tirelessly over the years, traveling the world to serve as an advocate for investors and share our thought leadership, with the goal of helping them make better decisions. Don has built a strong research team, and feels the time is right to make this life transition. I’m thrilled that he will stay with the company and continue to work closely with Haywood, focusing on new research initiatives.”

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Phillips joined Morningstar in 1986 and soon became editor of its flagship print publication, Morningstar Mutual Funds, establishing the editorial voice for which the company is best known. He helped to develop the Morningstar Style Box and the Morningstar Rating.

Kelly was named head of equity research in 1998, served as head of equity and fund research from 2000 to 2008, and became head of equity and credit research in 2009. He has also served as editor of Morningstar StockInvestor and interim president of Morningstar Credit Ratings, LLC.

Friday, April 11, 2014

Gap Falls On March Sales Decline, Janney Downgrade

Gap (GPS) was falling on Friday morning after its March sales disappointed, and Janney Montgomery Scott cut the apparel retailer to Hold.

Gap reported March global same store sales slid 6%, while analysts were looking for a 1.1% increase. For its individual brands, Gap was down 7% versus flat last year, Banana Republic fell 4% versus positive 1% last year and Old Navy dropped 7% versus a 2% fall last year.

Janney's Adrienne Tennant downgraded the stock to Neutral after the report, basing her decision on four main points: inventory that is growing faster than sales (creating margin pressure), deeper year-over-year promotions (indicating a competitive landscape), margin and comp pressures due to off-target Gap division product, and earnings per share growth that is reliant on selling, general and administrative control and share repurchases to offset gross margin pressures. Along with the downgrade, she lowered her fair value estimate for the stock from $50 to $41.

From the note:

We are lowering our first half estimates; 1Q14 goes to $0.55 from $0.67 (versus consensus of $0.67) and 2Q14 goes to $0.60 from $0.70 (versus consensus of $0.69). The company expects gross margin for 1Q14 to be below the prior year by more than the year-over-year decline in 4Q13 (280 basis points). In addition, given the company's ongoing expense management, the company expects 1Q14 operating expenses to be flat to last year. We expect the company to provide explicit 1Q14 EPS guidance with the company's April sales release. There are three main reasons impacting 1Q14 results: 1) severe storms that lead to store closures in the month of February, 2) heavier levels of inventory going into 1Q14, and 3) negative traffic trends in March. In addition, the company noted the Gap brand is seeing the greatest amount of pressure. Based on our March channel checks, we noted "deeper" promotional activity year-over-year across all three divisions for the majority of the month signifying the need to move through excess inventories. The company also noted that due to the shifting of the Easter holiday in 2014, March results were negatively impacted and therefore the months of March and April should be looked at together. Despite lowering 1Q14, the company reaffirmed FY14 EPS guidance range of $2.90 to $2.95 (the Street is currently at $2.96). This guidance range includes a negative impact of 5 percentage points from weakening foreign currencies. At its midpoint, the company's FY14 guidance represents an EPS growth of 7% on a reported basis. Excluding this impact, the company expects EPS growth to be in the double digits. We expect the retail environment to remain challenging in 1H14, pressuring merchandise margins, and believe SG&A control, margin-driving initiatives, and ongoing buyback activity are necessary to help support EPS.

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Wednesday, April 9, 2014

This Apparel Stock Is Stuck in Neutral

Perry Ellis International (NASDAQ: PERY ) is an apparel company that designs, markets, and licenses its brand-name products. The stock has dropped by nearly half this year, and it has sparked the interest of many value investors. Last Thursday, fourth-quarter earnings results beat lowered expectations and gave the stock a small bump.

Yet with strong competitors like PVH Corp (NYSE: PVH ) and Ralph Lauren (NYSE: RL ) for its signature menswear lines, this stock may be stuck in neutral for a bit. Let's take a closer look at both the quarter and the competitive landscape for Perry Ellis International.

Earnings results clear a low hurdle
While the market may have viewed Perry Ellis' quarterly earnings beat (of only $0.06 per share) favorably, it's important to note that the company pre-released lower guidance for the quarter a few weeks back. To give some context, this result compares to EPS of $0.50 per share in the same quarter last year. Full-year results of $0.38 per share also beat the lowered expectations of $0.34-$0.37.

Revenues for Perry Ellis actually declined 16% for the quarter. The apparel sector is tough, but competitors Ralph Lauren and PVH both expanded revenues, 9% and 25%, respectively, in their most recent quarter.

Is it fair to blame the weather?
The explanation for Perry Ellis' rough quarter, as given by President and COO Oscar Feldenkreis, struck a familiar chord for retailers this season --he blamed it on the weather.

Feldenkreis stated: "We were disappointed with the results of fiscal 2014. The year saw significant challenges, with unseasonal weather, consumer indifference to apparel, and declines in mall and outlet-center traffic all negatively impacting our business."

Turning to a positive note, Feldenkreis mentioned the favorable results in licensing agreements, before he laid out more positive guidance for fiscal 2015. For the year to come, Perry Ellis management expects adjusted earnings per share in a range of $0.75 to $0.90, which would represent roughly double last year's output.

Examining the bull case for Perry Ellis International
The bull case for Perry Ellis typically centers around two key factors.

1. Licensing business
One of the exciting things about Perry Ellis is its licensing business. It's the largest profit driver for the company, it's expanding, and it's not capital-intensive. The bullish case for the licensing business, and the value case for Perry Ellis, is explained in further detail in this Foolish article by Mark Lin.

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The problem I have with this argument is that Perry Ellis' gross profit margin is below the industry average (mid-40% range) and well below that of apparel leaders PVH and Ralph Lauren.

PVH Gross Profit Margin (Quarterly) Chart

PVH Gross Profit Margin (Quarterly) data by YCharts.

The licensing business is a boost to profit margins, but Perry Ellis still lags the industry as a whole. I think this discrepancy exists because of brand strength (or lack thereof). Ralph Lauren is one of the world's most valuable brands; PVH Corp, through Calvin Klein and Tommy Hilfiger, has pricing power as well. And while Perry Ellis may have a wide brand portfolio, through its original namesake, Original Penguin, Jantzen, and others, it doesn't have brands that customers will pay extra for. The proof is in the profit (margins).

I compare Perry Ellis to PVH Corp and Ralph Lauren for a reason. They are two of the few apparel companies that have grown in this environment, they have great brands, but they still trade at reasonable valuations.

PVH PE Ratio (Forward) Chart

PVH P/E Ratio (Forward) data by YCharts.

2. Positive guidance
The other bullish argument for Perry Ellis is the aforementioned guidance for fiscal 2015. With a current stock price around $14, if Perry Ellis were to meet its goal of $0.90 EPS, a P/E of just 20 would give the stock upside of 30%-40% from here.

The problem with that argument is that it's hard to take management's "bad weather" excuse seriously, because it posted a loss in the third quarter on weak demand. The full-year results of $0.38 per share drastically trailed last year's earnings of $1.45.

Furthermore, management blamed weak mall traffic, thanks to the weather, as a primary reason for a weak fourth quarter. Even if we're to believe the weather excuse, it only highlights the reliance that this company has on shopping malls. With the rapid growth in e-commerce, that's not a good thing.

More questions than answers
Stocks go up for two reasons: Either the underlying business is growing or it's about to turn things around. I can't say, with any certainty, that Perry Ellis is doing either of those things. While management expects better results to come, they haven't given us concrete reasons to believe them.

If you own shares, considering the recent drop, you may want to hold. But I can't think of a good reason to commit new money to shares; this stock may be stuck in neutral for a bit.

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Tuesday, April 8, 2014

Hot Casino Stocks To Watch For 2014

I don't know about you, but I've done some pretty dumb things with my own money. In my younger days I gambled in Las Vegas casinos and lost money, and more recently I've made some pretty poor stock purchasing decisions by buying into clearly questionable companies and ignoring the tell-tale warning signs that were present.

But the great thing about each and every failure is that it's a learning lesson meant to keep us from making the same mistakes over and over again. Clearly, I'm going to make mistakes going forward, but the ultimate goal should be to profit from those mistakes so they become fewer and more far between.

The reason I even bring my own personal money mistakes up is that data released a few days ago by Thompson Reuters' Lipper research service shows that $43 billion was removed from U.S. mutual funds in the previous week. It's quite plausible that the majority of these withdrawals had to do with the possibility of a debt default, which was thankfully avoided, but it also represents the biggest investment outflow we've witnessed in more than two years. With the S&P 500 near an all-time record high, it's evident that investor uncertainty and skepticism could be boiling over.

Hot Casino Stocks To Watch For 2014: Monarch Casino & Resort Inc (MCRI)

Monarch Casino & Resort, Inc. (Monarch), incorporated in 1993, through its wholly owned subsidiary, Golden Road Motor Inn, Inc. (Golden Road), owns and operates the Atlantis Casino Resort Spa(the Atlantis), a hotel/casino facility in Reno, Nevada. Monarch�� other wholly owned subsidiaries, High Desert Sunshine, Inc. (High Desert) and Golden North, Inc. (Golden North), each own separate parcels of land located adjacent to the Atlantis. The Company owns and operates the Atlantis Casino Resort Spa, which is located approximately three miles south of downtown in the area of Reno, Nevada. The Atlantis features approximately 61,000 square feet of casino space; a hotel with 824 guest rooms and suites; ten food outlets; an enclosed year-round pool with waterfall; an outdoor pool; a health spa; two retail outlets offering clothing and resort gift shop merchandise; a full service salon for men and women; an 8,000 square-foot family entertainment center; and approximately 52,000 square feet of banquet, convention and meeting room space. During the year ended December 31, 2011, the Company acquired 1.5 acre parcel of developable land contiguous to the Riviera Black Hawk Casino.

In April 2012, it acquired Riviera Black Hawk, Inc.

The Atlantis Casino offers approximately 1,450 slot and video poker machines; approximately 39 table games, including blackjack, craps, roulette and others; a race and sports book; keno and a poker room. The Atlantis includes three contiguous high-rise hotel towers with 824 rooms and suites. The Atlantis includes three contiguous high-rise hotel towers with a total of 824 rooms and suites. The first of the three hotel towers contains 160 rooms and suites in 13 stories. The 19-story second hotel tower contains 278 rooms and suites. The third tower contains 386 rooms and suites in 28 stories.

The Atlantis hotel rooms feature designs and furnishings consistent with the Northern Nevada market, as well as nine-foot ceilings (most standard hotel rooms have eig! ht-foot ceilings), which create an open and spacious feel. The third hotel tower features a four-story waterfall with an adjacent year-round swimming pool in a climate controlled, five-story glass enclosure, which shares an outdoor third floor pool deck with a seasonal outdoor swimming pool and year round whirlpool. A full-service salon (the Salon at Atlantis) overlooks the third floor sundeck and outdoor seasonal swimming pool and offers salon-grade products and treatments for hair, nails, skincare and body services for both men and women. A health spa is located adjacent to the swimming areas, which offers treatments and amenities. The hotel rooms on the spa floor are designated as spa rooms and feature decor that is themed consistent with the spa. Certain spa treatments are also available in spa floor hotel rooms. The hotel also features glass elevators rising the full 19 and 28 stories, of the respective towers providing views of the Reno area and the Sierra Nevada mountain range.

The Atlantis has eight restaurants, two gourmet coffee bars and one snack bar. It includes 160-seat Atlantis Steakhouse gourmet restaurant; the 200-seat upscale Bistro Napa featuring a centrally located wine cellar; the Oyster Bar restaurant in the Sky Terrace offering fresh seafood, soups and bisques made to order; the Sushi Bar, also in the Sky Terrace, offering a variety of fresh raw and cooked sushi specialties, including all-you-can-eat lunch and dinner selections. The Oyster Bar and Sushi Bar can accommodate up to 139 guests; The 178-seat 24-hour Purple Parrot coffee shop; the 122-seat Cafe Alfresco restaurant serving a full menu, pizzas prepared in a wood-fired, brick oven and a variety of gelato deserts; the 170-seat Manhattan Deli restaurant specializing in piled-high sandwiches, soups, salads and desserts; two gourmet coffee bars, offering specialty coffee drinks, pastries and desserts made fresh daily in the Atlantis bakery; a snack bar and soda fountain serving ice cream and arcade-style refreshmen! ts.

The Sky Terrace is a structure with a diamond-shaped, blue glass body suspended approximately 55 feet, and spanning 160 feet across, South Virginia Street. The Sky Terrace connects the Atlantis with additional parking on its 16-acre site across South Virginia Street from the Atlantis. The structure rests at each end on two 100-foot tall Grecian columns with no intermediate support pillars. The interior of the Sky Terrace contains the Oyster Bar, the Sushi Bar, a video poker bar, banks of slot machines and a lounge area with oversized leather sofas and chairs.

Advisors' Opinion:

[By Ben Levisohn]
Monarch Casino & Resort (MCRI) fell 15% to $18.71 after revenue missed forecasts today.

Stamps.com (STMP) fell 6.2% today ahead of its earnings results. It beat earnings after the close today.
[By Vanina Egea] ong>Risks and Valuation

Although the Chinese government will maintain its gambling restrictions in the mainland over the next decade, Sand Corp�� market share and leverage in fixed costs will continue to riel in strong revenue growth from this region. Fiscal 2013 marked a 24.80% revenue increase ($13.8 billion) and operating margins continue to expand at the same pace. Despite the inherent risk of an economic slowdown in Asia or a recession in the U.S., which could put a halt to leisure spending, the company is well prepared to balance out any short-term losses. The casino operator�� EBITDA growth of 65.30%, for example, is an impressive result when compared to the industry�� average of 4.90%.

Looking forward, earnings per share are expected to continue their fast-paced upward trend, having jumped from $1.56 in 2011 to $2.79 at the end of fiscal 2013. The 21.6% return on equity, as well as 1.80% dividend yield should also be attractive to shareholders and future investors. Although Las Vegas Sand Corp is currently trading at a 24% price premium relative to the industry average of 22.60x trailing earnings, I feel very bullish about this firm�� long term profitability, given its strong market position in Asia.

Disclosure: Vanina Egea holds no position in any stocks mentioned.

Also check out: Andreas Halvorsen Undervalued Stocks Andreas Halvorsen Top Growth Companies Andreas Halvorsen High Yield stocks, and Stocks that Andreas Halvorsen keeps buying
About the author:Vanina EgeaA fundamental analyst at Lone Tree Analytics
Visit Vanina Egea's Website
[By Jeremy Bowman]
What: Shares of Monarch Casino & Resort (NASDAQ: MCRI ) were cooling off today, falling as much as 20% after the company's earnings report failed to impress.

Hot Casino Stocks To Watch For 2014: Bwin.Party Digital Entertainment PLC (BPTY)

bwin.party digital entertainment plc (bwin.party) is a holding company. The Company is an online gaming company. It operates in five segments: sports betting, casino & games, poker, bingo; and other (including network services, World Poker Tour, InterTrader.com, WIN.com, software services and the payment services business). Its sport betting segment includes bwin, betoto, Gamebookers, Gioco Digitale and PartyBets. It�� Casino & games segment includes PartyCasino, bwin and GD Casino. Its poker segment includes PartyPoker, bwin and GD Casino. Its Bingo segment includes Foxy Bingo, Cheeky Bingo, Gioco Digitale and Binguez. The Company�� subsidiaries include BES SAS, bwin Argentina SA, bwin Italia S.r.l., bwin.party Games AB and Cashcade Limited. Its subsidiaries are engaged in management and information technology (IT) services, marketing services, online gaming, transaction services, customer support services, marketing support services and Land-based poker events. Advisors' Opinion:

[By Namitha Jagadeesh]
Bwin.Party Digital Entertainment Plc (BPTY) plunged 14 percent to 110 pence, the biggest drop since April 2011, after the online gaming company said 2013 sales will be 14 percent to 17 percent lower than last year�� figures. Analysts on average had forecast a sales drop of 9.2 percent.

Hot Tech Stocks For 2014: William Hill PLC (WMH)

William Hill PLC is a United Kingdom-based gambling company. The Company�� business is to provide its customers with a range of sports betting and gaming opportunities. It is a bookmaker providing fixed odds sports betting. It also offers gaming opportunities. The Company�� segments include Retail distribution channel, which includes activity undertaken in LBOs, including gaming machines; Online segment, which includes activity undertaken online, including an online sportsbook, online casino, online poker sites and other gaming products; Telephone segment, which includes its telephone betting services; US segment, comprises all activity undertaken in the United States; Other activities include on-course betting and greyhound stadia operations. In April 2013, it acquired the remaining 29% stake in William Hill Online from its joint venture partner Playtech Ltd. Effective September 2, 2013, William Hill PLC acquired Miapuesta.es, a provider of gaming and sports betting services. Advisors' Opinion:

[By Inyoung Hwang]
Royal Bank of Scotland Group Plc sank 3.3 percent after reporting results and naming the head of its U.K. consumer unit as chief executive officer. William Hill Plc (WMH) dropped the most in four years after the bookmaker posted earnings that missed analysts��projections. International Consolidated Airlines Group SA (IAG) rose to a five-year high as the parent of British Airways reported an operating profit in the second quarter.

Hot Casino Stocks To Watch For 2014: Pinnacle Entertainment Inc.(PNK)

Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.

Advisors' Opinion:

[By Ben Levisohn]
Pinnacle Entertainment (PNK) has gained 56% this year; Las Vegas Sands (LVS) has climbed 38%. And Deutsche Bank has nice things to say about both today.
Bloomberg
First Pinnacle. Deutsche Bank’s Carlo Santarelli ponders the stock’s big move and comes away still seeing value in its shares. He writes:

When we upgraded PNK in April, our thesis centered on the FCF strength of the combined entities [Pinnacle completed its acquisition of Ameristar Casinos on Aug. 14], a handful of favorable catalysts, easing regional gaming comps, & an inexpensive relative valuation. Given the shares’ sizeable move since then, we believe it is worth revisiting the investment case. Post the announcement of several asset sales and the closing of the transaction, we are adjusting our estimates, raising our PT to $30 from $24, and maintaining our bullish view at current levels given what we still believe to be an attractive free cash flow valuation, meaningful potential synergy realization beyond the $40 mm of announced benefits, and a free option on a lagging regional recovery.

Santarelli also revisited Las Vegas Sands and there too, he likes what he sees. He writes:

With…LVS at [a share price level] that have been challenging to break from over the last year plus, we believe this time is different and hence we see continued upward momentum…In the case of LVS, we see; 1) meaningful mass market strength continuing through year end, setting the stage for upward company and market estimate revisions for 2014, 2) continued cash flow appreciation and capital returns serving as downside protection and positive catalysts, and 3) continued shared gains, largely driven by table optimization and mass market strength, driving both estimates and sentiment.

He also likes Wynn Resorts (WYNN), despite its 34% gain.�Santarelli writes:

As for WYNN, we believe near-term estimates continue to take a back seat to capital return
[By Travis Hoium]
What: Shares of Ameristar Casinos (NASDAQ: ASCA ) and Pinnacle Entertainment (NYSE: PNK ) fell as much as 11% today after the government brought into question the merger of the two companies.
[By Sean Williams]
Time to make the switch
If I could name a sector that I'd certainly tread lightly around considering that consumers are tightening their wallets, it would be the casino sector. Casino companies rely on loose wallets and vacations to drive profits. This is why I feel it could be the time to say goodbye to casino and race track operator Pinnacle Entertainment (NYSE: PNK ) near its 52-week high.
[By Dan Radovsky]
Pinnacle Entertainment (NYSE: PNK ) has reached an agreement in principle with the Bureau of Competition of the Federal Trade Commission that would allow the company to complete its proposed acquisition of Ameristar Casinos (NASDAQ: ASCA ) , Pinnacle announced today.

Hot Casino Stocks To Watch For 2014: Penn National Gaming Inc.(PENN)

Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.

Advisors' Opinion:

[By Patricio Kehoe] the measures taken to balance out revenue in case of headwinds.

Valuation and Contracts

One factor that plays in this firm�� favor is NASCAR�� long-term contracts with major TV networks and radio stations. The most recent deal is set to launch in 2015, and will bind the motorsport brand for 10 years to NBC and Twenty-First Century Fox Inc. (FOX), for a total of $8.2 billion (45% annual increase over the current contract). Although a more stable economic scenario may reignite concessionary spending among customers, and cause the motorsport segment to gain popularity again, the non-existent switching costs and alternative leisure choices could be detrimental to this company. Also, ISCA�� current $87.9 million cash flow will likely be stagnated by the new Daytona Ring Project, which is expected to cost $400 million over the next five years.

Furthermore, concerns remain regarding the company�� growth metrics, especially given their downward trend. For the fourth quarter in 2013, revenue showed negative growth of 0.5%, a downfall which ISCA has not been able to stall since 2007. Operating margins have also fallen by 9% in the past two years (currently at 12.8%), in addition to the below average (2.02%) dividend yield of 0.70%. Added to a premium P/E value of 33.00x trailing earnings, compared to the industry average of 22.40x, I feel bearish about this motorsports giant�� near-term profitability and see some uncertainty in the long-term future.

Disclosure: Patricio Kehoe holds no position in any stocks mentioned.
About the author:Patricio KehoeA fundamental analyst at Lone Tree Analytics
[By Lisa Levin]
Penn National Gaming (NASDAQ: PENN) shares fell 1.71% to reach a new 52-week low of $12.05. Penn National Gaming is expected to report its Q4 results on February 6.
[By Will Ashworth]
Famed investor Leon Cooperman sold his position in Penn National Gaming (PENN) in the fourth quarter of 2013, replacing it with a 2.2 million shares of GLPI, the real estate spinoff the casino operator took public through a 1-for-1 share distribution last November. Its first acquisition came one month later when it paid $140 million for a casino in East St. Louis. Pure-play REITs come in all shapes and sizes, but never before has there been one in the casino business.
[By Paul Ausick]
Penn National Gaming Inc. (NASDAQ: PENN) completed on Monday the spin-off of its real-estate holdings into a new REIT, Gaming and Leisure Properties Inc. (G&LP) (NASDAQ: GLPI). The spin-off was first announced a year ago. Shares in GLPI are trading at around $46.51 after opening at $45.76 this morning.

Hot Casino Stocks To Watch For 2014: Wynn Resorts Limited(WYNN)

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.

Advisors' Opinion:

[By Kyle Spencer]
Unfortunately, the Chinese frozen food market is an oligopoly, which means there aren't U.S. listed stocks that stand to benefit at this point, apart from General Mills (GIS) subsidiary Wan Chai Ferry. On the other hand, there are plenty of short opportunities, including YUM brands (YUM), and Wynn Resorts (WYNN), despite the amusingly Panglossian report that RBC Capital released on Wynn Resorts Monday.
[By Jonas Elmerraji]
While gamblers in Las Vegas are focused on the payouts on the casino floor at Wynn Resorts (WYNN), I'm more interested in this stock's dividend payout -- there's no gamble there. The $14 billion casino resort operator currently pays out a $1 per share dividend each quarter, adding up to a 2.8% dividend yield at current price levels.

Wynn has benefitted from a rebounding economy in Las Vegas. The firm's Wynn and Encore resorts are two of the newer properties on the strip, and their high-end positioning keeps VIP business coming into the door. Vegas, though, isn't Wynn's cash cow anymore. China is. Today, around 70% of revenues actually come from Macau, the high-end Chinese gambling district. Macau is Wynn's crown jewel in large part because the firm is one of the few that's been granted a gaming license from the government: Wynn has two properties in Macau, with a third on the way.

Healthy levels of profitability have translated into a $2.2 billion cash position for WYNN -- enough to pay for around 15% of the firm's market capitalization. Concentrated ownership from founder Steve Wynn should align management's incentives with investors, and increase the likelihood of a dividend hike.

Hot Casino Stocks To Watch 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.

Hot Casino Stocks To Watch For 2014: Dover Downs Gaming & Entertainment Inc (DDE)

Dover Downs Gaming & Entertainment, Inc., incorporated in December of 2001, is a premier gaming and entertainment resorts. The Company�� operations consist of: Dover Downs Casino, a 165,000-square foot casino complex featuring table games, including craps, roulette and card games, such as blackjack, Spanish 21, baccarat, 3-card and pai gow poker, the latest in slot machine offerings, multi-player electronic table games, the Crown Royal poker room, a Race & Sports Book operation, the Dover Downs' Fire & Ice Lounge, the Festival Buffet, Doc Magrogan's Oyster House, Frankie's Italian restaurant, as well as several bars, restaurants and four retail outlets; Dover Downs Hotel and Conference Center, a 500 room AAA Four Diamond hotel with a full-service spa/salon, conference, banquet, ballroom and concert hall facilities, and Dover Downs Raceway, a harness racing track with pari-mutuel wagering on live and simulcast horse races. All of its operations are located at its entertainment complex in Dover. Its two wholly owned subsidiaries include Dover Downs, Inc. and Dover Downs Gaming Management Corp.

Dover Downs Casino

The Company's casino had approximately 2,539 slot machines as of December 31, 2011. It is open for business around the clock. During the year ended December 31, 2011, that the facility was visited by approximately 2.6 million patrons. Its slot machines range from penny machines to $100 machines in the Premium Slots area and include games found in the country's major gaming jurisdictions. The Company operates with 40 tables, including blackjack, craps and roulette tables. The Crown Royal poker room has 12 poker tables. It has its Race and Sports Book operation featuring parlay sports wagering on NFL games and pari-mutuel wagering on live and simulcast horse races. Dover Downs, Inc. is authorized to conduct video lottery, sports wagering and table game operations. The Company's Capital Club, a slots players club and tracking system, allows it to identify customers and t! o reward their level of play through various marketing programs.

Dover Downs Hotel

The Company's luxury hotel facility, the Dover Downs Hotel and Conference Center, connects to the Company's casino. The facility includes 500 rooms, including 11 luxury spa suites, a multi-purpose ballroom/concert hall, a fine dining restaurant, swimming pool and a luxurious 6,000 square-foot full-service spa. It offers a range of entertainment options to its patrons, including concerts featuring prominent entertainers, live boxing, gourmet dining, spa facilities, trade shows and conferences. During 2011, hotel occupancy averaged 90%.

Dover Downs Raceway

The Company�� Dover Downs Raceway conducts live harness races from November until April and is simulcast to more than 300 tracks and other off-track betting locations across North America on each of the Company's more than 120 live race dates. The Company's harness racing track is a 5/8-mile track that is located on DVD's property and is on the inside of its one-mile motorsports superspeedway. Additional amenities include the Winners Circle Restaurant overlooking the horse racing track. Within the Company's Race & Sports Book operation is the simulcast parlor where the patrons can wager on harness and thoroughbred races received by satellite into its facility year round from numerous tracks across North America. Television monitors throughout the area provide views of all races simultaneously and the betting windows are connected to a central computer allowing bets to be received on all races from all tracks.

The Company has an agreement with the Delaware Standardbred Owner's Association, Inc. (DSOA) effective September 1, 2010 and continuing through August 31, 2014. DSOA's membership consists of owners, trainers and drivers of harness horses participating in harness race meetings at its facilities and elsewhere in the United States and Canada. Under the DSOA agreement, the Company is required to distrib! ute as pu! rses for races conducted at its facilities a percentage of its retained share of pari-mutuel revenues.

The Company competes with Harrington Raceway and Delaware Park.

Advisors' Opinion:

[By Paul Ausick]
The REIT is expected to spend as much as $500 million in acquisitions in 2014, according to Barron��, and some potential acquisition targets include Isle of Capri Casinos Inc. (NASDAQ: ISLE) which has a market cap of around $323 million or Dover Downs Gaming & Entertainment Inc. (NYSE: DDE) with a market cap of around $47 million.
[By Paul Ausick]
Stocks on the move: Vodafone Group PLC (NASDAQ: VOD) is up 8.1% at $31.80 on reports of discussions with Verizon Communications Inc. (NYSE: VZ) that would result in the sale of Vodafone�� 45% stake in Verizon Wireless to the controlling shareholder. Dover Downs Gaming & Entertainment Inc. (NYSE: DDE) is up 10.8% at $1.54 after Wednesday�� launch of its online casino games that will soon be available to state residents to play for real money.

Hot Casino Stocks To Watch For 2014: Caribbean International Holdings Inc (CIHN)

Caribbean International Holdings Inc., formerly Caribbean Casino and Gaming Corporation, incorporated on February 12, 2009, is focused in the gaming and entertainment company. The Company has a gaming casino, located in the city of Sousa, in the Dominican Republic. In April 2012, it acquired exclusive rights to distribute Bionic Products' Energy Drinks throughout the Caribbean, South and Central America.

The Sosua Bay Grand Casino provides the gaming and entertainment experience to the Domincan Republic. It is equipped with a state of the art lighting and sound system.

Advisors' Opinion:

[By Peter Graham]
Small cap stocks Caribbean International Holdings (OTCMKTS: CIHN), Blue Water Global Group Inc (OTCBB: BLUU) and Metrospaces Inc (OTCMKTS: MSPC) have been getting some attention lately in various investment newsletters and all three have focused their activities in the Caribbean or South America. However, all three have been the subject of paid promotions which have helped to get them mentions in various investment newsletters. With that in mind, will bets on the Caribbean or South America pay off big for these three small cap stocks and their investors? Here is a quick reality check:
Caribbean International Holdings (OTCMKTS: CIHN) is All About Wings, Mechanical Bulls and Stem Cells
Formerly known as Caribbean Casino & Gaming Corp, small cap Caribbean International Holdings operates as a holding company. On Friday, Caribbean International Holdings rose 8.39% to $0.0369 for a market cap of $315,400 plus CIHN is up 985.3% over the past year and up 7,280% over the past five years according to Google Finance.

Hot Casino Stocks To Watch For 2014: MGM Resorts International(MGM)

MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Advisors' Opinion:

[By Travis Hoium]
But there's still evidence that it exists, even if authorities don't push hard for information. MGM Resorts (NYSE: MGM ) was forced to divest its New Jersey properties because of the company's relationship with Pansy Ho, whose father had ties to triads in Macau. Las Vegas Sands is under investigation by the U.S. attorney's office for possibly violating money laundering laws in Macau last year.