Top Stocks to Invest in 2012 - 4 Stocks That Love Stalled Home Sales

The current environment is bad news if you’re trying to sell your home — prices haven’t been this low since the first season of American Idol. (That’s 2002 for you non-Ryan Seacrest fans.)
The Case-Shiller national home price index reported a 4% drop in 4Q 2011, marking the biggest decline since 2008. Since the market peaked in 2Q 2006, home prices have dropped 33.8%.
This disappointing trend comes despite pockets of recovery in other parts of the economic world. Industrial production has been gaining ground, for example, and consumer confidence is at an annual high. Even the unemployment rate is moving lower, finally, though perhaps not for long.
Every cloud has a silver lining, however, and most negative market trends have some beneficiaries. The group of companies that may be enjoying a little schadenfreude at the expense of homeowners are home-improvement retailers such as Top Stocks to Invest in 2012 - Home Depot (NYSE:HD), Top Stocks to Invest in 2012 -Lowe’s (NYSE:LOW), Top Stocks to Invest in 2012 -Fastenal (NASDAQ:FAST) and Sherwin-Williams (NYSE:SHW). Respectively, this quartet of stocks has returned 38%, 35%, 63%, and 38% over the past six months.
The rationale behind this relationship is twofold: First, consumers desperate to sell their homes may pour additional funds into improvements to make the property more attractive to buyers. Second, homeowners who realize they may not have be able to sell might opt to spend on upgrades rather than shop around for a new place.
Technically speaking, HD is looking quite strong. The stock has rallied to a new 52-week high along support from its 10-day and 20-day moving averages. What’s more, the shares recently overtook the $44-to-$45 region, which acted as price-level resistance throughout 2004-2006.
HD is now trading at levels not seen since — what a coincidence — 2002. Meanwhile, earnings have continued to grow at a 16% annual rate, and the stock’s price-to-earnings ratio, at 19.1, is on par with HD’s competitors.
Home Depot’s top rival, Lowe’s, is trying to overtake some technical resistance of its own. The stock has been muscling higher since last fall and is currently trying to break out above the $28 level. While this proved insurmountable for LOW in April 2010 and March 2011, the stock’s current momentum may be enough to power it through this resistance.
Traders looking for a possible entry point should watch for a breakout above $30. Earnings growth at LOW is lower than HD’s, at 8% year-over-year, but the stock’s P-E ratio is lower as well, at 16.5.
FAST has been in a steady uptrend since late 2009, gaining roughly 150% since the beginning of 2010. Currently, the stock is exploring new all-time-high territory. Quarterly earnings have met or exceeded analysts’ estimates in each of the past eight quarters, and year-over-year earnings have grown at a rate of over 20%. One caveat: FAST’s P-E ratio stands at 42.6, well above the average in the industrials sector (19.0) or the S&P 500 (18.5).
Finally, the principal of paint — SHW. Nothing spruces up a room more quickly and inexpensively than a new color, and SHW is happy to help. Year-over-year, earnings have grown by more than 18% and are predicted to keep edging higher in the next half-decade. Like FAST, SHW is currently trading near an all-time high and recently entered triple-digit territory.
Finally, if you like this overall theory, another name to consider that is adjacent to the home-improvement sector is Top Stocks to Invest in 2012 - Sears Holdings (NASDAQ:SHLD), which has been rallying lately in the wake of some strategic changes. Valspar Corp. (NYSE:VAL), another paint and coatings manufacturer, could also participate in any upside.

Top Rising Stocks To Buy in 2012

The recent market breakout has been welcomed with much fanfare by bull lovers along with any others with a vested interest in higher stock prices. But, with the S&P 500 Index up almost 17% in a mere three weeks, some are wondering whether it is reckless to jump aboard the bull train at this stage.
Indeed, the fear of becoming the ill-fated “late to the party Charlie” is likely keeping many parked on the sidelines. While one may bask in the safety of the sidelines, such a course of action could also lead to missing out if the market continues to surge. The remedy lies in moderation.
Rather than going “all in” or staying “all out,” why not scale in by buying a portion of your position such as 1/2 or 1/3? Such an approach sets up what could be a win-win situation.
If the stock does in fact sell off over the coming days, you’ve been granted an opportunity to enter the remainder of your position at cheaper prices. On the other hand, if the stock continues to ramp up, you are at least participating to a certain extent with your partial position.
The same approach could be implemented with options. Whether you’re looking to purchase call options outright or jump into some type of spread, you could initiate a starter position and then wait a few days to see what type of reaction we see to the overstretched market.

Top Rising Stocks To Buy: Canon Inc. (CAJ)

Canon, Inc., through its subsidiaries, manufactures and sells network digital multifunction devices (MFDs), plain paper copying machines, laser printers, inkjet printers, cameras, and lithography equipments primarily under Canon brand in the Americas, Europe, Asia and Oceania. The company operates through three segments: the Office Business Unit, the Consumer Business Unit, and the Industry and Others Business Unit. The Office Business Unit manufactures, markets, and services a range of monochrome network digital MFDs, color network digital MFDs, office copying machines, personal-use network digital MFDs, office copying machines, full-color copying machines, personal-use copying machines, laser printers, large format inkjet printers, and digital production printers. The Consumer Business Unit manufactures and markets digital SLR cameras, compact digital cameras, interchangeable lenses, digital video camcorders, inkjet multifunction peripherals, single function inkjet printers, image scanners, broadcasting equipment, and various other camera accessories. The Industry and Others Business Unit offers semiconductor lithography equipment; mirror projection LCD lithography equipment; medical image recording equipment; ophthalmic products; magnetic heads for audio and video tape recorders; micro-motors for printers and other components; components, computer information systems, document scanners, and personal information products, as well as personal computers, servers, calculators, and micrographic equipment. Canon, Inc. also provides maintenance services to its copying machines, as well as supplies replacement drums, parts, chemicals, and paper. The company sells its products through dealers, distributors, and retail outlets, as well as directly to end users. Canon, Inc. was founded in 1937 and is headquartered in Tokyo, Japan.

Top Rising Stocks To Buy: National CineMedia Inc. (NCMI)

National CineMedia, Inc., through its subsidiaries, operates a digital in-theatre network in North America. It develops, produces, sells, and distributes various versions of a branded, pre-feature entertainment, and advertising program called ?FirstLook? on theatre screens and advertising programming on its lobby entertainment network; and sells various forms of advertising and promotions in theatre lobbies. The company distributes Fathom business and consumer entertainment events through digital content network and live digital broadcast network utilizing its proprietary digital content software. It also facilitates business meetings, church services, and corporate marketing/communication events in the movie theatres throughout its theatre network; and distributes entertainment programming products, which include live and pre-recorded concerts, opera, symphony, concert and DVD product releases, theatrical premieres, Broadway plays, and other music events, as well as live sports and other special events. In addition, the company provides its services to third-party theatre circuits through network affiliate agreements. As of August 4, 2011, its advertising network had approximately 18,100 digital screens. The company was founded in 2005 and is headquartered in Centennial, Colorado.
Advisors’ Opinion:
  • By Jeff Reeves At 2011-10-21National CineMedia (NASDAQ: NCMI) is a massive in-theatre advertising network across North America, serving ads on screen and throughout cinema properties that reach almost 18,000 movie screens.
    Current Yield: 5% (80 cents a share annually)
    Dividend History: In June 2010, the company paid 18 cents a share for its quarterly dividend. This year, CineMedia will pay 20 cents a share. That’s an 11% dividend increase.
    Dividend Outlook: According to Bloomberg, National CineMedia has a three-year expected dividend growth rate of 10.3%.
    Recent Performance: The biggest flaw in NCMI is its recent performance. The company recently swung to a quarterly loss in its latest earnings report, and shares are off almost 20% year-to-date in 2011.
    Strong Outlook for Shares: Though a bit risky due to its recent earnings and stock performance, NCMI may be a strong growth buy as advertisers return to the screen and movie-goers head back to the theater. Revenue increased 9% from 2009 to 2010, and is set to grow 9% again this year. As we enter the blockbuster summer movie season, NCMI may be a good buy before a rebound.

Top Rising Stocks To Buy: bebe stores inc. (BEBE)

bebe stores, inc. engages in the design, development, and production of women?s apparel and accessories. Its products include a range of separates, tops, dresses, active wear, and accessories in career, evening, casual, and active lifestyle categories. The company markets its products under the bebe, BEBE SPORT, bbsp, and 2b bebe brand names targeting 21 to 34-year-old woman. As of July 2, 2011, it operated 252 retail stores, and an online store at bebe.com in the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Japan, and Canada, as well as 60 international licensee operated stores in south east Asia, the United Arab Emirates, Israel, Russia, Mexico, and Turkey. The company was founded in 1976 and is headquartered in Brisbane, California.
Advisors’ Opinion:
  • By Wyatt Research At 2011-8-30The women’s apparel retailer reported fiscal fourth-quarter sales and same-store sales both rose 7 percent. The stock is up 30 percent year-to-date.

Top Rising Stocks To Buy: Pulse Electronics Corporation (PULS)

Pulse Electronics Corporation produces precision-engineered electronic components and modules that are used to manage, transmit, and regulate electronic signals and power in various types of electronic products. The company operates in three segments: Network, Power, and Wireless. The Network segment produces various passive components, including connectors, filters, filtered connectors, transformers, inductors, splitters and diplexers, micro-filters, baluns, and chokes that manage and regulate electronic signals for use in various devices used in local area and wide area networks. The Power segment primarily manufactures products that adjust and ensure current and voltage, limit distortion of voltage, sense and report current and voltage, and cause mechanical movement or actuation. This segment?s products include power and signal transformers, chokes, current and voltage sensors, ignition coils, automotive ignition coils, military and aerospace products, and other power magnetic products. The Wireless segment produces antennas, antenna modules, and antenna mounting components and cables that capture and transmit communication signals in handsets, other terminal and portable devices, automobiles, and wireless-to-wireline access points. The company sells its products and services to original equipment manufacturers, original design manufacturers, and contract equipment manufacturers who design, build, and market end-user products. Pulse Electronics Corporation markets its products primarily through direct sales forces worldwide. The company was formerly known as Technitrol, Inc. and changed its name to Pulse Electronics Corporation in November 2010. Pulse Electronics Corporation was founded in 1947 and is headquartered in San Diego, California.
Advisors’ Opinion:
  • By Quickel At 2011-9-11Pulse Electronics Corporation, formerly Technitrol, Inc., is a producer of precision-engineered electronic components and modules. The company’s electronic components and modules are used to manage, transmit and regulate electronic signals and power in virtually all types of electronic products. Its EPS forecast for the current year is 0.28 and next year is 0.45. According to consensus estimates, its topline is expected to decline 1.53% current year and grow 6% next year. It is trading at a forward P/E of 13.53. Out of four analysts covering the company, two are positive and have buy recommendations and the other two have hold ratings.

Top Rising Stocks To Buy: Cerus Corporation (CERS)

Cerus Corporation, a biomedical products company, engages in the development and commercialization of the INTERCEPT Blood System. The company?s INTERCEPT system is designed to inactivate blood-borne pathogens in donated blood components intended for transfusion. It markets the INTERCEPT system for platelets and plasma primarily in Europe, the Russian Federation, and the Middle East. The company is also developing INTERCEPT Blood System for red blood cells or red blood cell system, which is designed to inactivate blood-borne pathogens in donated red blood cells for transfusion. Cerus Corporation has collaboration agreements with Baxter International, Inc.; and BioOne Corporation, as well as the United States Armed Forces. The company was founded in 1991 and is based in Concord, California.
Advisors’ Opinion:
  • By Michael Shulman At 2011-9-15Cerus (NASDAQ: CERS) developed and markets the INTERCEPT Blood System, which is designed to inactivate blood-borne pathogens in blood components so the blood can be used in transfusions. In other words, it “cleans” donated blood of viruses, bacteria and parasites.
    Cerus is pretty much the only game in town with this remarkable technology, and it has gained approval in most large European countries. Why not the United States? Well, management has not stood up to the FDA. The approval has been held up by one member of the FDA even though Cerus hit the primary endpoints in its pivotal Phase III trial and is receiving grants from the Department of Defense.
    The FDA should quit dragging its feet eventually. There is no scientific or product risk in this stock. Their system works. My target price is $14 in one to three years.

Top Rising Stocks To Buy: American Oriental Bioengineering Inc. (AOB)

American Oriental Bioengineering, Inc. engages in the development, manufacture, and commercialization of a range of pharmaceutical and healthcare products. The company?s principal prescription pharmaceutical products include Shuanghuanglian Lyophilized Injection Powder (SHL Injection Powder), an anti-viral injection for treating respiratory infections, bronchitis, and tonsillitis; and Cease Enuresis Soft Gel (CE Gel) that is used to alleviate bedwetting. Its over-the-counter pharmaceutical products comprise Cease Enuresis Patch for the treatment of bedwetting and incontinence; Jinji Capsule for the treatment of endometritis, annexitis, and pelvic inflammations; Jinji Yimucao for the treatment of premenstrual syndrome (PMS) and other PMS and menopause-related symptoms; and Boke Nasal Spray for the treatment of sinus congestion from common cold, stuffy nose, chronic rhinitis, allergic rhinitis, and nasosinusitis. The company also markets various nutraceutical products, such as soybean peptide based drinks, tablets, powder, and instant coffee. American Oriental Bioengineering sells its products primarily to hospitals, clinics, pharmacies, and retail outlets in China through its sales professionals and distributors. The company is based in Beijing, the People?s Republic of China.

Top Rising Stocks To Buy: Ecolab Inc. (ECL)

Ecolab Inc. develops and markets products and services for the hospitality, foodservice, healthcare, and industrial markets primarily in the United States. It provides cleaning and sanitizing products and programs, as well as pest elimination, maintenance, and repair services primarily to customers in the foodservice, food and beverage processing, hospitality, healthcare, government and education, retail, textile care, commercial facilities management, and vehicle wash sectors. The company offers specialized cleaners and sanitizers for washing dishes, glassware, flatware, foodservice utensils, and kitchen equipment; food safety products and equipment, water filters, dishwasher racks, and related kitchen sundries; pool and spa treatment programs; janitorial cleaning and floor care products; chemical dispensing device systems; and energy-efficient dishwashing machines, detergents, rinse additives, and sanitizers. In addition, it provides detergents, cleaners, sanitizers, lubricants, and animal health products, as well as cleaning systems, electronic dispensers, and chemical injectors; infection prevention and other healthcare related products; and chemical laundry products and proprietary dispensing systems. The company provides pest elimination services, which include detection, elimination, and prevention of pests, such as rodents and insects; and equipment repair and maintenance services for the commercial food service industry. It sells its products through direct sales personnel, dealers, and independent third-party distributors in the United States. The company also exports and sells its products to distributors, agents, or licensees in approximately 72 countries in Europe, the Asia Pacific, Latin America, Canada, the Middle East, and Africa. Ecolab Inc. was founded in 1923 and is headquartered in St. Paul, Minnesota.

Top Rising Stocks To Buy: Novartis AG (NVS)

Novartis AG, through its subsidiaries, engages in the research, development, manufacture, and marketing of healthcare products worldwide. Its Pharmaceuticals division offers prescription medicines in various therapeutic areas, including cardiovascular and metabolism; oncology; neuroscience and ophthalmics; respiratory; integrated hospital care; and other additional products. The company?s Vaccines and Diagnostics division provides preventive vaccines and diagnostic tools. This division sells influenza, meningococcal, pediatric, and traveler vaccines; and blood testing and molecular diagnostics to prevent the spread of infectious diseases. Its Sandoz division provides prescription medicines, as well as pharmaceutical and biotechnological active substances. This division offers active ingredients and finished dosage forms of medicines; active pharmaceutical ingredients and intermediates, primarily antibiotics; protein or biotechnology-based products; and cytotoxic products, as well as provides biotech manufacturing services to other companies. The company?s Consumer Health division consists of three business units: over-the-counter medicines (OTC), Animal Health, and CIBA Vision. OTC unit offers readily available consumer medicines. Animal Health unit provides veterinary products for farm and companion animals. CIBA Vision unit manufactures contact lenses and lens care products. It has strategic partnership with Lonza, a Swiss pharmaceuticals manufacturing company; and a research collaboration agreement with BioVista LLC. The company was founded in 1895 and is headquartered in Basel, Switzerland.

Top Rising Stocks To Buy: Sony Corp Ord (SNE)

Sony Corporation designs, develops, manufactures, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial markets worldwide. The company offers consumer products and devices, including televisions, video cameras, compact digital cameras and interchangeable single-lens cameras, Blu-ray Disc players/recorders, DVD-video players/recorders, home theaters and audio systems, and portable audio and car audio products. It also provides charged coupled devices, complementary metal-oxide semiconductor image sensors, system LSIs, small- and medium-sized LCD panels, and other semiconductors; and components, such as batteries, optical disk drives, chemical products, audio/video/data recording media, storage media, and optical pickups. In addition, the company develops, produces, markets, and distributes games, such as PlayStation3, PlayStation Portable, and PlayStation 2 hardware and related software; and PCs and flash memory digital audio players, as well as manufactures broadcast- and professional-use products, Blu-ray discs, DVDs, and CD discs. Further, it produces and distributes motion pictures and television programs, and home entertainment; creates and distributes digital content; operates television networks and studio facilities; and develops entertainment products, services, and technologies. Additionally, the company engages in the music publishing business, as well as provision of various financial services, including insurance, savings products, loans, and credit financing services; and a network service business and an advertising agency business. It also involves in research, development, design, production, marketing, sales, distribution, and servicing mobile phones, accessories, services, and applications. The company was formerly known as Tokyo Tsushin Kogyo Kabushiki Kaisha and changed its name to Sony Corporation in 1958. Sony Corporation was founded in 1946 and is based in Tokyo, Japan.
Advisors’ Opinion:
  • By Conrad At 2011-10-26Sony (SNE: 20.21, -0.17, -0.83%) has a hand in televisions, cameras, movie and music production, video games, banking and much else. Its stock sells for about what it fetched in 1996, when DVDs were just catching on. Efforts by chief executive Howard Stringer, installed in 2005, to cut costs were eclipsed by the recent recession, which shrank sales and led to losses. Sony has returned to profitability over the past year and according to Jay Defibaugh, who covers the stock for MF Global, it’s now ready to shift its focus to new products, including a new handheld gaming device and a line of tablet computers. Other possibilities for improvement, according to Defibaugh, include the unwinding of non-core businesses like insurance and banking and the launch of a new business model for the struggling television division that uses Sony’s video, games and music catalog to create a hardware-and-service offering.
  • By Carlson At 2011-9-27Sony Corporation (SNE) has been downgraded by TheStreet Ratings from hold to sell. The company’s weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
    Sony Corporation designs, develops, manufactures, and sells electronic equipment, instruments, and devices for consumer, professional, and industrial markets worldwide. The company has a P/E ratio of 5.9, below the S&P 500 P/E ratio of 17.7. Sony has a market cap of $20.8 billion and is part of the consumer goods sector and consumer durables industry. Shares are down 44.4% year to date as of the close of trading on Wednesday.

4 Ways to Make Money on the Next Pullback

 

Everyone’s familiar with the credo of Berkshire Hathaway’s (NYSE:BRK.A, BRK.B) Warren Buffett: “Be fearful when others are greedy, and be greedy when others are fearful.” Well, lately it seems investors have been awfully greedy. The Dow is up almost 19% in the past six months, enjoying a consistent climb since mid-December.
But markets never climb in a straight line forever. Inevitably, there will be a pullback.  And there are plenty of signs one might be here soon.

For example, hedge fund manager Doug Kass — who tends to be spot-on with market predictions — recently went bearish. Some of the risks he sees include the persistently high oil prices, geopolitical problems in the Middle East and slowdown in China. He also points out that there has been a divergence between the S&P 500 and the Dow Transports, which has lagged. This tends to foretell a pullback at some point in the broad market, which he says could be 4% to 5%.
Plus, a look at the S&P 500 shows that while the index might eventually clear the 1,360 resistance mark that’s been so much trouble, again, a pullback is in order.
But a pullback doesn’t mean losses for all investors. Traders willing to accept some risk can take short positions and make money when things take a turn for the worse. Here’s a few shorts investors should consider:

Groupon

A rule of thumb for an IPO is that its first earnings report needs to beat expectations. Otherwise, investors who made an initial bet on the company are likely to take a hit.
Unfortunately for shareholders in Groupon (NASDAQ:GRPN), the company whiffed big on its first quarterly earnings report. The company’s revenues were up almost 200%, but the company still lost almost $43 million. Groupon has massive scale and employs more than 10,000 people, but can’t seem to get profitable. There’s questions about its business model, and the company has been lowering its marketing costs, which could mean a reduction in revenues. All the meanwhile, it has to deal with tough rivals like Google (NASDAQ:GOOG) and LivingSocial.
Sentiment is low on Groupon, and it could fall on a weak market.

Apple

It might seem absolutely insane to even consider shorting Apple (NASDAQ:AAPL). But it’s not like the company hasn’t seen its stock drop before.
Besides, how many bulls can there be? Already, Apple stock has gone parabolic, which can be an ominous sign. This was the case with companies like Microsoft (NASDAQ:MSFT), which, a decade ago, was expected to be the first company to reach $1 trillion in value.
If the market turns back, investors already greatly rewarded by Apple will be tempted to take their profits. And things could get worse if the iPad 3 underwhelms.

Amazon

InvestorPlace Editor Jeff Reeves previously put Amazon (NASDAQ:AMZN) on his list of top shorts for 2012. True, the company is the dominant player in e-commerce and is taking market share away from brick-and-mortar companies like Wal-Mart (NYSE:WMT) and Best Buy (NYSE:BBY). And yes, Amazon’s Kindle Fire tablet is a great product that will be pivotal in its fight to remain relevant in the mobile market.
So what’s Amazon’s problem? Well, the company does not have much consideration for the costs of these investments. Amazon had a lackluster performance in its fourth-quarter earnings report, with earnings of $177 million (38 cents per share) and revenues of $17.4 billion coming in below Street estimates. The company also provided tepid guidance for the current quarter, saying it could even sustain a loss. Amazon investors’ patience might be wearing thin, and it could break on a pullback.

Tech Stocks

Of course, tech stocks as a whole have been among the biggest winners in the recent rally. But in a pullback, the sector likely will be one of the biggest victims of profit-taking.
A way to play negative with the whole group is to short the Select Sector Technology SPDR (NYSE:XLK). It focuses on large-cap stocks and is fairly concentrated, with the top 10 holdings accounting for nearly 65% of the portfolio. Or you could consider entering a short ETF like the ProShares UltraShort Technology (NYSE:REW) fund, which is built to gain when the Dow Jones U.S. Technology Index drops.

Top 10 Biotech Stocks to buy 2013

 
 
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If you’re looking for a stock that could double over the next 12 months, your best bet is biotechnology. Using the Google (GOOG) screener, I found that 51 stocks with a market capitalization greater than $50 million had returned one-year gains of at least 100%. But what’s even more interesting is that biotechnology stocks account for 18 or 35% of the 51 stocks trading with at least a 100% gain over the last year. The top 5 gainers in the market, over the last year, are biotech stocks, and 9 of the top 20 were biotech. Therefore, it’s safe to say that if you’re looking for a stock with quick upside potential, biotechnology should be the first place you look. However, it can be difficult to identify the stocks that have this level of upside potential, which is what this article will attempt to identify.
This article is actually a two part series that will look at 10 stocks in the biotechnology industry that present the most upside potential from its current position. The stocks on this list are numbered from 10-1, with #1 having the most potential based on a number of possible factors, which include: clinical trials, low valuations, and even the likelihood for being acquired. The goal is to find the absolute most undervalued biotech stocks in the market that could very well return gains of more than 100% over the next 52 weeks.

Top 10 Biotech Stocks 2013: Bristol-Myers Squibb Company (BMY)

Bristol-Myers Squibb Company, a global biopharmaceutical company, discovers, develops, and delivers innovative medicines that help patients prevail over serious diseases. The company focuses on areas of serious unmet medical needs, such as cardiovascular disease, mental illness, cancer, HIV/AIDS, hepatitis B and C, rheumatoid arthritis, type 2 diabetes, solid organ transplantation, and Alzheimer’s disease. Its principal products include PLAVIX for protection against fatal or non-fatal heart attack or stroke; AVAPRO/AVALIDE for the treatment of hypertension and diabetic nephropathy; ABILIFY, an agent for adult patients with schizophrenia, bipolar mania disorder, and depressive disorder; and REYATAZ for the treatment of HIV. The company?s principal products also comprise SUSTIVA for the treatment of HIV; BARACLUDE, an inhibitor of hepatitis B virus; ERBITUX to target and block the epidermal growth factor receptor; SPRYCEL for treatment of chronic myeloid leukemia in adults; IXEMPRA to treat breast cancer; ORENCIA to severe rheumatoid arthritis in adults; and ONGLYZA for the treatment of type 2 diabetes. Its products under Phase III clinical trials include ELIQUIS to prevent and treat venous thromboembolic disorders and stroke prevention in atrial fibrillation; NULOJIX to prevent solid organ transplant rejection; Brivanib to block the VEGF and the FGF receptors; Dapagliflozin to treat diabetes; YERVOY to treat metastatic melanoma; and Necitumumab for anticancer treatment. The company sells its products to wholesalers, distributors, retailers, hospitals, clinics, government agencies, and pharmacies. It has strategic alliances with sanofi-aventis; Pfizer, Inc.; AstraZeneca PLC; Otsuka Pharmaceutical Co., Ltd.; Eli Lilly and Company; and Gilead Sciences, Inc. The company was formerly known as Bristol-Myers Company and changed its name to Bristol-Myers Squibb Company in 1989. Bristol-Myers Squibb Company was founded in 1887 and is headquartered in New York, New York.
Advisors’ Opinion:
  • By Tom Hutchinson At 2011-9-20Bristol Myers Squibb (NYSE: BMY) markets drugs worldwide and is one of the largest pharmaceutical companies in the world. The company sells at a higher price-to-earnings (P/E) ratio (14) than most Big Pharma companies (the industry average is 13), but still lower than the overall market (15.4). Bristol also pays a solid 5.2% dividend yield, compared with 2.1% for the overall market and 4.5% for the pharmaceutical industry.
    Like most major drug companies, Bristol faces costly patent expirations.  Blockbuster drugs Plavix (cholesterol) and Abilify (anti psychotic drug), which account for nearly half of net sales, will lose patents in 2011 and 2012. Also, most of Bristol’s sales are generated in the United States, meaning the company will be negatively affected by the new health-care reform bill, which requires discounts on drugs for patients using Medicaid. However, these problems are already reflected in the stock price and the company has solid prospects going forward.
    Bristol Meyers has sold off most of its noncore businesses and is focusing exclusively on drugs. The company has cut $2.5 billion in operation expenses in the past few years as well, and has more than $5 billion in cash that it can use for acquisitions. It also has a robust pipeline of cancer drugs with a strong track record of FDA approval. The stock has an excellent chance to impress going forward, and the dividend is well supported with a 61% payout ratio.

Top 10 Biotech Stocks 2013: Merck & Company Inc. (MRK)

Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. The company?s Pharmaceutical segment provides human health pharmaceutical products, such as therapeutic and preventive agents for the treatment of human disorders in the areas of bone, respiratory, immunology, dermatology, cardiovascular, diabetes and obesity, infectious diseases, neurosciences and ophthalmology, oncology, vaccines, and women’s health and endocrine. This segment also offers human health vaccines, such as preventive pediatric, adolescent, and adult vaccines. Its Animal Health segment discovers, develops, manufactures, and markets animal health products. This segment offers antibiotics, anti-inflammatory products, vaccines, products for the treatment of fertility disorders, and parasiticides for cattle, swine, horses, poultry, dogs, cats, salmons, and fish. The Consumer Care segment develops, manufactures, and markets over-the-counter, foot care, and sun care products. Its over-the-counter product line includes non-drowsy antihistamines; treatment for occasional constipation; decongestant-free cold/flu medicine for people with high blood pressure; nasal decongestant spray; and treatment for frequent heartburn. This segment?s foot care products comprise topical antifungal, and foot and sneaker odor/wetness products; and sun care products include sun care lotions, sprays and dry oils; and sunburn relief products. The company serves drug wholesalers and retailers, hospitals, government agencies, physicians, physician distributors, veterinarians, animal producers, and managed health care providers, as well as food chain and mass merchandiser outlets in the United States and Canada. Merck & Co., Inc. was founded in 1891 and is headquartered in Whitehouse Station, New Jersey.
Advisors’ Opinion:
  • By Chuck At 2011-12-5MRK has been surprisingly volatile in 2011 as many investors question the leadership of new CEO Kenneth Frazier.Additionally, Merck has a number of patents set to expire soon.Regardless, with a yield of 5.1%, dividend investors will want to snap this stock up. Merck also boasts stronger quarterly revenue growth than competitors like Bayer (BAYRY.PK), GlaxoSmithKline (GSK), and Pfizer (PFE). While price to earnings ratio (33.77) and price/earnings to growth ratio (1.84) are somewhat high, the best companies simply trade at a premium. Note that this was also the case with Intel above. In fact, like Intel, Merck has also had all of the past 4 quarters’ net cash inflows. As far as general pharmaceutical news goes, the industry may have taken a blow due to the recent striking down of Obama’s universal healthcare plan. Regardless, the fate of that law will probably be decided in the Supreme Court, so the fight is not over yet. Look for news regarding the constitutionality of mandated healthcare to definitely affect MRK stock but perhaps not as much as future company-specific events. Speaking of company-specific events, the lawsuit against Merck surrounding its Vioxx drug and possible fraud of investors continues to rage on.
  • By Smart Money At 2011-9-15Forward P/E: 7.8.

    Five-year average forward P/E: 13.7.
    Discount to five-year average: 46%.
    The market’s shift away from defensive stocks in sectors like pharmaceuticals and the Obama administration’s proposed health care reforms are just a couple of issues weighing on Merck (MRK, news, msgs). Shares in the Whitehouse Station, N.J., company are also being hobbled by company-specific problems, such as disappointing sales of asthma treatment Singulair, its best-selling drug, as well as increased competition, patent expirations and a pipeline of drugs with poor prospects for Food and Drug Administration approval.
    Fortunately for Merck investors, the company’s pending acquisition of Schering-Plough (SGP, news, msgs) should go a long way toward easing many of these problems, especially Merck’s poor drug pipeline and its ability to remain competitive, says Morningstar analyst Damien Conover. “Merck greatly improved its long-term outlook by agreeing to acquire Schering-Plough,” the analyst says.
  • By McWillams At 2011-8-28Merck & Co. Inc. (NYSE: MRK : 31.91, 0.05) reported net income of $2.02 billion, or 65 cents per share in its fiscal 2011 second quarter, compared to net income of $752 million or 24 cents a year ago. Analysts had estimated earnings of 95 cents per share for the firm. The company’s revenue rose 7 percent to $12.15 billion, better than analysts’ forecast of $11.82 billion. Shares closed Thursday’s trading at $34.93.

Top 10 Biotech Stocks 2013: Johnson & Johnson (JNJ)

Johnson & Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The Consumer segment provides products used in baby care, skin care, oral care, wound care, and women?s health care fields, as well as nutritional, over-the-counter pharmaceutical products, and wellness and prevention platforms under the brands of JOHNSON?S, AVEENO, CLEAN & CLEAR, JOHNSON?S Adult, NEUTROGENA, RoC, LUBRIDERM, DABAO, LISTERINE, REACH, BAND-AID, CAREFREE, STAYFREE, SPLENDA, TYLENOL, SUDAFED, ZYRTEC, MOTRIN IB, and PEPCID AC. The Pharmaceutical segment offers products in various therapeutic areas, such as anti-infective, antipsychotic, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, and virology. Its principal products include REMICADE for the treatment of immune mediated inflammatory diseases; STELARA for the treatment of moderate to severe plaque psoriasis; SIMPONI, a treatment for adults with moderate to severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis; VELCADE for the treatment of multiple myeloma; PREZISTA and INTELENCE for treating HIV/AIDS patients; NUCYNTA for moderate to severe acute pain; INVEGA SUSTENNAtm for the acute and maintenance treatment of schizophrenia in adults; RISPERDAL CONSTA for the management of bipolar I disorder and schizophrenia; and PROCRIT to stimulate red blood cell production. The Medical Devices and Diagnostics segment primarily offers circulatory disease management products; orthopaedic joint reconstruction, spinal care, and sports medicine products; surgical care, aesthetics, and women?s health products; blood glucose monitoring and insulin delivery products; professional diagnostic products; and disposable contact lenses. The company was founded in 1886 and is based in New Brunswick, New Jersey.
Advisors’ Opinion:
  • By Glenn At 2012-1-11Johnson &Johnson (JNJ, $64). Health care giant has “geographic and product diversity” and is positioned to profit via consumer, pharmaceutical and medical device businesses.
  • By Michael At 2012-1-11I really like JNJ.  They are the largest health care company in the world, in an industry that is ever growing.  They have extremely strong brands for consumer products all around the world.  They also have a strong business on the medical technology end as well.  As the world grays with increasing numbers of the elderly, a massive and emerging middle class in the emerging markets and just the nature of the health care industry in general, I think JNJ is very well positioned to take advantage of significant growth over the next decade.  They are also lending money to European banks.  That means they have a lot of cash.
  • By ETF Authority At 2011-11-21I have viewed Johnson & Johnson as the perfect dividend stock ever since I started investing in dividend stocks. As such, I have an above-average position in it. The recent product recalls and the lack of immediate action on behalf of executives are a potential issue for the company, although I doubt it will lead to JNJ’s demise. The company should be able to turn around, and those that entered at current levels likely will generate strong returns in the future.
  • By Smith At 2011-10-28Johnson & Johnson (JNJ) engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The company has consistently raised distributions for 48 years in a row and yields 3.50%. The company is attractively valued at the moment at 12.80 times earnings.
  • By James K. Glassman At 2011-10-21The Motley Fool Web site recently warned against buying several stocks owned by Warren Buffett, legendary chairman of Berkshire Hathaway (BRK-A). Among those that the Fool panned were Coca-Cola (KO) and the Washington Post (WPO). I’m actually a fan of both, but an even better choice among Buffett’s holdings is Johnson & Johnson (JNJ), which the Fool admitted was a “great opportunity.” After J&J was hammered in 2010, mainly because of production problems, Buffett raised his position by nearly three-fourths. J&J is a sound company with a terrific brand in sectors (drugs and consumer products) that are steady in hard times, and its stock yields 3.3%.
  • By Jim Cramer At 2011-9-7Unless William Weldon steps down as chief executive officer after his multiple mistakes at the helm of this once great company, we are going to see a high $50s stock at best, with a yield of 4% that will not be attractive. I am convinced that the FDA will come down hard on the company because of its multiple recalls and 2011 will be the year that the tarnished brand will start tarnishing earnings. I am going to say $58 for a target, although Weldon’s exit could take the stock to $66. I bet they don’t do the right thing, though. They haven’t yet. Why would we expect anything different. A down stock for an up year.

Top 10 Biotech Stocks 2013: ARIAD Pharmaceuticals Inc. (ARIA)

ARIAD Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of small-molecule drugs for the treatment of cancer. The company?s lead cancer product, ridaforolimus is being studied in multiple clinical trials in patients with various types of cancers, including metastatic sarcomas, breast cancer, endometrial cancer, prostate cancer, and non-small cell lung cancer. Its product pipeline also includes ponatinib, a pan BCR-ABL inhibitor in phase 2 clinical trial for applications in various hematological cancers and solid tumors; and AP26113, an anaplastic lymphoma kinase inhibitor in preclinical studies for the treatment of various cancers, including non-small cell lung cancer, lymphoma, and neuroblastoma. In addition, the company focuses on a drug discovery program centered on small-molecule therapies that are molecularly targeted to cell-signaling pathways implicated in cancer. Further, it licenses its ARGENT cell-signaling regulation technologies to pharmaceutical and biotechnology companies to develop and commercialize therapeutic products, and to conduct drug discovery research. The company has collaboration and license agreements with Merck & Co., Inc. for the development, manufacture, and commercialization of ridaforolimus; and license agreements with Medinol Ltd. and ICON Medical Corp. to develop and commercialize stents and other medical devices to deliver ridaforolimus to prevent restenosis of injured vessels. ARIAD Pharmaceuticals, Inc. was founded in 1991 and is based in Cambridge, Massachusetts.

Top 10 Biotech Stocks 2013: ArQule Inc. (ARQL)

ArQule, Inc., a clinical-stage biotechnology company, engages in the research and development of cancer therapeutics directed toward molecular targets and biological processes. Its lead product ARQ 197 is non-adenosine triphosphate competitive inhibitor of the c-Met receptor tyrosine kinase, which is being evaluated as monotherapy and in combination therapy in a Phase II clinical development program that includes trials in non-small cell lung cancer, c-Met-associated soft tissue sarcomas, pancreatic adenocarcinoma, hepatocellular carcinoma, germ cell tumors, and colorectal cancer. The company is also developing ARQ 621, a Phase I program focused on inhibition of the Eg5 kinesin spindle protein. Its clinical stage products include ARQ 501, ARQ 761, and ARQ 171, which are designed to kill cancer cells selectively while sparing normal cells through the direct activation of DNA damage response/checkpoint pathways. In addition, the company involves in pre-clinical development of B-RAF and AKIP Kinase inhibitors. The company has collaborations with Kyowa Hakko Kirin Co., Ltd. and Daiichi Sankyo Co., Ltd. ArQule, Inc. was founded in 1993 and is headquartered in Woburn, Massachusetts.

Top 10 Biotech Stocks 2013: Cell Therapeutics Inc. (CTIC)

Cell Therapeutics, Inc., a biopharmaceutical company, engages in the development, acquisition, and commercialization of drugs for the treatment of cancer. The company is developing Pixuvri, a novel anthracycline derivative for the treatment of non-Hodgkin?s lymphoma, as well as for various other hematologic malignancies and solid tumors; OPAXIO, a Phase III clinical trial product for the treatment of ovarian, brain, esophageal, and non-small cell lung cancer; and Brostallicin, a phase II trial for the treatment of metastatic triple-negative breast cancer. It is also developing Bisplatinates, a platinum-based chemotherapy drug to treat various kinds of cancers. The company has collaboration and licensing agreements with PG-TXL Company, L.P.; Gynecologic Oncology Group; Nerviano Medical Sciences; Cephalon; and Novartis. Cell Therapeutics, Inc. was founded in 1991 and is based in Seattle, Washington.

Top 10 Biotech Stocks 2013: Exelixis Inc. (EXEL)

Exelixis, Inc., a biotechnology company, develops small molecule therapies for the treatment of cancer. It focuses on developing Cabozantinib, an inhibitor of tumor growth, metastasis, and angiogenesis that target MET, VEGFR2, and RET, which are key kinases involved in the development and progression of various cancers. The cabozantinib is in Phase III clinical trial for the treatment for medullary thyroid cancer. The company also engages in various clinical programs for cabozantinib focused on the treatment of metastatic castration-resistant prostate cancer, ovarian cancer, breast cancer, renal cell carcinoma, non-small cell lung cancer, hepatocellular cancer, and melanoma. In addition, Exelixis, Inc. involves in developing a portfolio of other novel compounds to address serious unmet medical needs through collaborations with various pharmaceutical and biotechnology companies, including Bristol-Myers Squibb Company, sanofi-aventis, Genentech, Inc., Boehringer Ingelheim GmbH, and GlaxoSmithKline and Daiichi Sankyo Company Limited. Its products under development through collaborations include XL475, XL281, XL139, and XL413 inhibitors; ROR antagonists; therapies targeted against LXR, a nuclear hormone receptor implicated in various cardiovascular and metabolic disorders; XL147, XL765, and isoform-selective PI3K inhibitors; XL518, a small-molecule inhibitor of MEK; sphingosine-1-phosphate type 1 receptor; XL880 inhibitor; and therapies targeted against the mineralocorticoid receptor, a nuclear hormone receptor implicated in various cardiovascular and metabolic diseases. The company was formerly known as Exelixis Pharmaceuticals, Inc. and changed its name to Exelixis, Inc. in February 2000. Exelixis, Inc. was founded in 1994 and is headquartered in South San Francisco, California.
Advisors’ Opinion:
  • By Stephen At 2011-8-29This drug-development company will go before the FDA later this year and throughout 2012 and 2013 with a series of new drug applications. Exelixis’ drug cabozantinib, code-named XL1-84, has shown a great deal of promise with a range of metastasizing tumors. The drug is being tested in the treatment of several types of cancers, hence the multiple filings with the federal regulator.
    But a much closer catalyst exists: at the annual American Society of Clinical Oncology meeting, to be held in early June, Elexilis will present data from the phase II trial of cabozantinib. If history is any guide, then the interim testing results will be well-received by shareholders.
    During the second half of 2011, the drug will go deeper into the clinical testing trials. Each time that happens, the company will provide effectiveness data on the performance of the prior round of testing. Results from a phase III study of metastasized thyroid cancers are expected to be concluded in a few months, while phase III studies for the treatment of prostate cancer are expected to begin later this year. Every one of these instances could be a catalyst to take shares higher.
    As a final catalyst, Exelixis has allegedly been having discussions with potential buyers, according to Bloomberg, though waiting on such a transaction before making a move also represents risk. Investors bid up shares of Savient Pharma (Nasdaq: SVNT) after the company put itself up for sale. Hopes for a quick profit were dashed when the company couldn’t find any suitors and shares lost almost half of their value in just one day.

Top 10 Biotech Stocks 2013: Incyte Corporation (INCY)

Incyte Corporation focuses on the discovery and development of proprietary small molecule drugs for hematologic and oncology indications, and inflammatory and autoimmune diseases. Its product pipe line includes INCB18424, which is in Phase III clinical trial for myelofibrosis; Phase III trial for polycythemia vera; Phase III trial for essential thrombocythemia; Phase I/II trial to treat solid tumors/other hematologic malignancies; and Phase IIb trail for the treatment of psoriasis. The company?s portfolio also includes INCB28050, a Phase IIb clinical trial product for rheumatoid arthritis; INCB28060, a Phase I/II product for solid tumors; INCB7839, a Phase II product for breast cancer; and INCB24360, a Phase I/II product for solid tumors. It has a collaborative research and license agreements with Novartis International Pharmaceutical Ltd.; Eli Lilly and Company; and Pfizer Inc. The company was founded in 1991 and is headquartered in Wilmington, Delaware.

Top 10 Biotech Stocks 2013: Medivation Inc. (MDVN)

Medivation, Inc., a biopharmaceutical company, focuses on the development of small molecule drugs for the treatment of castration-resistant prostate cancer, Alzheimer?s disease, and Huntington disease. The company?s product candidates under clinical development include MDV3100, which is in Phase 3 development for the treatment of castration-resistant prostate cancer; and dimebon, which is in Phase 3 clinical trial for the treatment of Alzheimer?s disease and Huntington disease. It has collaboration agreements with Pfizer Inc. to develop and commercialize dimebon; and Astellas Pharma Inc. to develop and commercialize MDV3100. The company was founded in 2003 and is based in San Francisco, California.

Top 10 Biotech Stocks 2013: Nektar Therapeutics (NKTR)

Nektar Therapeutics, a clinical-stage biopharmaceutical company, engages in developing a pipeline of drug candidates that utilize its PEGylation and polymer conjugate technology platforms. The company?s product pipeline consists of drug candidates across various therapeutic areas, including oncology, pain, anti-infectives, anti-viral, and immunology. Its research and development activities involve small molecule drugs, peptides, and other potential biologic drug candidates. The company?s proprietary drug candidates in clinical development comprise NKTR-118, a peripheral opioid antagonist, which has completed Phase II clinical trail for the treatment of opioid-induced constipation; BAY41-6551 that has completed Phase II clinical trail to treat gram-negative pneumonias; NKTR-102, a topoisomerase I inhibitor-polymer conjugate, which is in Phase II clinical trail for multiple cancer indications, including breast, ovarian, and colorectal; and NKTR-105 that is in Phase I clinical trail to treat solid tumors. Its preclinical products consists of NKTR-119 (Opioid/NKTR-118 combinations) for the treatment of pain; NKTR-181 (abuse deterrent, tamper-resistant opioid) to treat pain; NKTR-194 (non-scheduled opioid) for the treatment of mild to moderate pain; NKTR-171 (tricyclic antidepressant) to treat neuropathic pain; and NKTR-140 (protease inhibitor candidate) to treat HIV. The company has collaboration with Bayer Healthcare LLC to develop BAY41-6551 (NKTR-061, Amikacin Inhale), which is an inhaled solution of amikacin, an aminoglycoside antibiotic; and a license agreement with AstraZeneca AB for the development and commercialization of Oral NKTR-118 and NKTR-119. In addition, Nektar Therapeutics has various license, manufacturing, and supply agreements for its technology with biotechnology and pharmaceutical companies, such as Affymax, Amgen, Baxter, Roche, Merck, Pfizer, and UCB Pharma. The company was founded in 1990 and is headquartered in San Francisco, California.

Top 10 Biotech Stocks 2013: Neoprobe Corporation (NEOP)

Neoprobe Corporation, a biomedical company, engages in the development and commercialization of precision diagnostics that enhance patient care and improve patient benefit. The company is developing and commercializing targeted agents aimed at the identification of occult (undetected) disease. Neoprobe?s two lead radiopharmaceutical agent plaatforms, Lymphoseek and RIGScan are intended to help surgeons better identify and treat certain types of cancer. Lymphoseek is a diagnostic imaging agent intended for radiolabeling and administration in radiodetection and visualization of the lymphatic system draining the region of injection for delineation of the lymphatic tissue; and RIGScan is an intraoperative biologic targeting agent consisting of a radiolabeled murine monoclonal antibody. The company has a biopharmaceutical development and supply agreement with Laureate Biopharmaceutical Services, Inc. to support the initial evaluation of the viability of the CC49 master working cell bank, as well as the initial steps in re-validating the commercial production process for the biologic agent used in RIGScan CR. The company was founded in 1983 and is based in Dublin, Ohio.
Advisors’ Opinion:
  • By Putnam At 2011-10-20Neoprobe Corporation Common St (AMEX:NEOP): This equity had 12,374,458 shares sold short as of Aug 31st, as compared to 11,847,479 on Aug 15th, which represents a change of 526,979 shares, or 4.4%. Days to cover for this company is 17 and average daily trading volume is 745,501.

Top 10 Companies To Invest In 2012

Following is top 10 companies to invest in 2012:
Top 10 Companies To Invest In 2012#10. Tesoro is an oil and gas refiner. Its stock has risen 27% so far in 2011. It has more than doubled in the past 12 months.
Tesoro swung to a modest fourth-quarter profit of $3 million, or two cents a share, from a loss of $179 million, or $1.30, a year earlier. Its revenue grew 20%. The operating margin climbed from negative territory to 0.3%. Tesoro’s stock is still cheap, selling for a forward earnings multiple of 11, a book value multiple of 1.1 and a sales multiple of 0.2, 40%, 75% and 94% discounts to oil and gas industry averages.
12-Month Sales Growth: 23%
12-Month Net Income Growth: 79%
12-Month Earnings Per Share Growth: 77%
Top 10 Companies To Invest In 2012#9. Big Lots is a closeout retailer, selling food, health and beauty and furniture products. Its stock has rallied 30% in 2011, in part due to takeover rumors.
Management is exploring a sale, possibly to private equity investors. Big Lots’ fiscal third-quarter net income dropped 42% and earnings per share fell 38%, cushioned by a smaller float. Revenue inched up 2%. The operating margin contracted from 3.3% to 2.6%. Big Lots’ stock sells for a trailing P/E of 15 and a forward P/E of 13, 27% and 33% peer discounts. It’s expensive based on book value and cash flow.
12-Month Sales Growth: 5.7%
12-Month Net Income Growth: 25%
12-Month Earnings Per Share Growth: 24%
Top 10 Companies To Invest In 2012#8. Level 3 is an alternative telecom-carrier. Its stock has advanced 39% in 2011.
Level 3′s fourth-quarter net loss decreased 71% to $52 million, or three cents a share, as revenue declined marginally to $921 million. The operating margin rose from negative 4.6% to negative 0.4% during the latest quarter. Level 3 is running a shareholders’ deficit of $157 million. Its stock sells for a sales multiple of 0.6 and a cash flow multiple of 6.7, sizable discounts to peer averages. The stock receives “buy” ratings from just 8% of analysts.
12-Month Sales Growth: -3.0%
12-Month Net Income Growth: -0.6%
12-Month Earnings Per Share Growth: 0.0%
Top 10 Companies To Invest In 2012#7. HealthSpring is a managed health-care company. Its stock has appreciated 40% in 2011.
HealthSpring’s fourth-quarter net income soared 45% to $51 million, or 88 cents a share. Revenue grew 30% to $882 million. The operating margin ascended from 10% to 11%. HealthSpring’s stock trades at a trailing earnings multiple of 11, a forward earnings multiple of 8.9, a book value multiple of 1.8 and a cash flow multiple of 9.5, 36%, 41%, 43% and 16% discounts to industry averages. Its PEG ratio of 0.9 indicates a 10% discount, based on estimated long-run growth.
12-Month Sales Growth: 18%
12-Month Net Income Growth: 45%
12-Month Earnings Per Share Growth: 41%
Top 10 Companies To Invest In 2012#6. Aruba Networkssells communications equipment, which connects users to corporate technology resources through enterprise networks. Its stock has returned 41% so far in 2011.
Aruba’s fiscal second-quarter loss decreased 36% to $2.8 million, or three cents a share. Revenue climbed 50% to $94 million. The operating margin improved from negative 6.3% to negative 2.8%. Aruba’s stock is exorbitant, costing 41-times forward earnings, 13-times book value, 9.1-times sales and 61-times cash flow. Still, 47% of researchers rank the stock “buy.”
12-Month Sales Growth: 47%
12-Month Net Income Growth: 86%
12-Month Earnings Per Share Growth: 84%
Top 10 Companies To Invest In 2012#5. Manitowoc makes cranes and foodservice equipment. Its stock has soared 45% in 2011.
Manitowoc’s fourth-quarter net loss more than doubled to $64 million, or 41 cents a share, from $24 million, or 17 cents, a year earlier. Revenue declined 1% to $831 million. The operating margin widened from 4.4% to 6.4%. Manitowoc’s stock trades at a forward earnings multiple of 13, a sales multiple of 0.8 and a cash flow multiple of 12, 22%, 49% and 24% discounts to industrial machinery industry averages.
12-Month Sales Growth: -17%
12-Month Net Income Growth: 90%
12-Month Earnings Per Share Growth: 90%
Top 10 Companies To Invest In 2012#4. IPG Photonics makes fiber lasers and amplifiers, used by materials processing, telecom and medical companies. Its stock has surged 62% in 2011 and has more than tripled in 12 months.
IPG’s scheduled to release fourth-quarter results today. Its third-quarter profit more than quintupled to $13 million, or 28 cents a share, as revenue jumped 74% to $80 million. The operating margin rose from 7.9% to 28%. IPG’s stock is pricey, selling for 28-times forward earnings, 8.1-times book value, 9.2-times sales and 51-times cash flow, peer premiums.
12-Month Sales Growth: 33%
12-Month Net Income Growth: 165%
12-Month Earnings Per Share Growth: 156%
Top 10 Companies To Invest In 2012#3. Weight Watchers provides weight-management services worldwide. Its stock has soared 66% in 2011 and has doubled in 12 months.
Fourth-quarter net income more than doubled to $49 million, or 66 cents a share, as revenue gained 15% to $357 million. The operating margin narrowed from 28% to 27%. The stock trades at a forward earnings multiple of 15, a 13% peer discount. But, it’s expensive based on sales. The company is running a shareholders’ deficit. It receives “buy” calls from 29% of analysts.
12-Month Sales Growth: 3.8%
12-Month Net Income Growth: 9.5%
12-Month Earnings Per Share Growth: 12%
Top 10 Companies To Invest In 2012#2. JDS Uniphase sells communications test and measurement solutions and optical products to telecom, cable and tech companies. Its stock is up 67% in 2011. It has doubled in 12 months.
JDS Uniphase swung to a fiscal second-quarter profit of $24 million, or 10 cents a share, from a loss of $20 million, or nine cents, a year earlier. Revenue grew 38% to $474 million. The operating margin rose from negative territory to 7.9%. JDS is pricey, costing 21-times forward earnings, 5.5-times book value and 33-times cash flow, significant premiums to peers.
12-Month Sales Growth: 34%
12-Month Net Income Growth: 106%
12-Month Earnings Per Share Growth: 106%
Top 10 Companies To Invest In 2012#1. Fannie Mae is a government-sponsored enterprise, providing liquidity in the mortgage market and improving housing affordability. The U.S. government owns roughly 79% of its equity.
Fannie Mae’s third-quarter net loss decreased 93% to $1.3 billion, or 61 cents a share, from nearly $19 billion, or $3.47, a year earlier. The operating margin turned positive. Fannie Mae’s stock trades at a significant discount to financial peers, but remains reliant on the support of the federal government. Still, the company’s fundamentals are clearly improving.
12-Month Sales Growth: 230%
12-Month Net Income Growth: 64%
12-Month Earnings Per Share Growth: 57%

Best Companies To Invest In 2012

During my years as a global merchant banker, advisor to governments, financial-news editor and trading-service specialist, I’ve time and again seen the big losses that can result from arrogant executives (Enron), greed-driven strategies (Lehman) and other investments gone wrong.
But what most investors don’t understand is that the fallout from these losses reaches far beyond the losses themselves. You see, that’s money that can’t be deployed into winners.
As one longtime investing adage tells us, if you suffer a 50% loss on a stock, you need that stock to double in price (a gain of 100%) just to get back to even.
And let’s be honest: How many times has one of your stocks doubled – after it took that kind of a beating?
There are many strategies you can use to protect yourself from big losses. Just last week, for instance, I showed you how to bolster your portfolio by investing in companies with strong growth prospects and a record of consistent dividend payouts.

Best Companies To Invest In 2012: Majesco Entertainment Company (COOL)

Majesco Entertainment Company develops and markets video game products primarily for family oriented mass-market consumers. The company publishes video games for various interactive entertainment hardware platforms, including Nintendo?s DS, DSi, and Wii; Sony?s PlayStation 3 and PlayStation Portable; Microsoft?s Xbox 360; and personal computers. It also publishes games for various digital platforms consisting of mobile platforms comprising iPhone, iPad, and iPod Touch, as well as online platforms, including Facebook. The company sells its products primarily to retail chains, specialty retail stores, video game rental outlets, and distributors. The company was founded in 1998 and is based in Edison, New Jersey.
Advisors’ Opinion:
  • By Louis At 2011-10-28Majesco Entertainment(NASDAQ: COOL) is an innovative provider of video games for the mass market, developing a wide range of titles for Sony’s PlayStation, Microsoft’s Xbox and Nintendo’s WII systems. On June 7, COOL announced that it had signed a contract with the NBA to begin development of an original video-game basketball franchise. The stock rose an impressive 32% over the next five trading days while the broader market sold off.However, the stock is down today after reporting weaker-than-expected second-quarter earnings last night, missing consensus earnings estimates by 2 cents. Majesco reported net revenues of $32.1 million for the second quarter ended April 30, 2011, compared with $10.9 million reported for the same period in the previous year. The company’s operating income for the second quarter was $5.3 million, compared with an operating loss of $1.6 million reported for the same period in the previous year. So treat this sell-off as a buying opportunity.
  • By McWillams At 2011-10-28Majesco Entertainment makes video games mainly for the family-oriented, mass-market consumer.Majesco’s incredible run this year started on Jan. 11 when the company announced it had shipped more than 500,000 copies of its Zumba Fitness video game title for the Wii, Xbox 360 and PlayStation 3. In late January, the company announced that it regained compliance with the Nasdaq’s minimum bid price requirement for continued listing.
    In early March, shares of Majesco climbed higher after the company posted better-than-expected fiscal first-quarter financial results, with revenue jumping to $48.5 million from $29.2 million in the same period a year earlier.
    Current Share Price: $3.20 (March 29)
    First Quarter Total Return: 315%
    Analyst Ratings: Majesco garners a lone “buy” rating from Needham & Co. and a “neutral” rating from Wedbush. Coincidentally, both research firms have a $2.50 price target on the stock.
    TheStreet Ratings has a “hold” recommendation on Majesco Entertainment. The research report from March 20 says revenue growth, a largely solid financial position with reasonable debt levels and solid stock price performance are strengths that are countered by the company’s weak cash flow from its operations.

Best Companies To Invest In 2012: Vanguard Natural Resources LLC (VNR)

Vanguard Natural Resources, LLC, through its subsidiaries, engages in the acquisition and development of oil and natural gas properties in the United States. Its properties are located in the southern portion of the Appalachian Basin, primarily in southeast Kentucky and northeast Tennessee; the Permian Basin, primarily in west Texas and southeastern New Mexico; and south Texas. As of December 31, 2010, the company had estimated proved reserves of 69.3 million barrels of oil equivalent, as well as working interests in 2,270 net productive wells. Vanguard Natural Resources, LLC was founded in 2006 and is based in Houston, Texas.

Best Companies To Invest In 2012: Emerson Radio Corporation (MSN)

Emerson Radio Corp., together with its subsidiaries, engages in designing, sourcing, importing, marketing, selling, and licensing various house ware and consumer electronic products in the United States and internationally. It offers house wares products, such as microwave ovens, compact refrigerators, and wine coolers; audio products comprising digital clock radios, portable stereo systems, and other audio products; and video and other products, including televisions, digital video disc (DVD) players, mobile electronics, and telephone and telephone accessories. The company provides its products under the Emerson, HH Scott, and Olevia brands. It markets its products primarily through mass merchandisers. The company was founded in 1948 and is headquartered in Moonachie, New Jersey. Emerson Radio Corp. operates as a subsidiary of Grande Holdings Limited.

Best Companies To Invest In 2012: Edison International (EIX)

Edison International, through its subsidiaries, engages in the supply of electric energy in central, coastal, and southern California. It involves in developing, acquiring, owning or leasing, operating, and selling energy and capacity from independent power production facilities, as well as conducts hedging and energy trading activities in power markets. The company also invests in energy and infrastructure projects, including power generation, electric transmission and distribution, transportation, and telecommunications, as well as has investments in housing projects in the United States. Edison International offers its services to commercial, residential, agricultural, and industrial customers, as well as to public authorities. As of December 31, 2009, the company served approximately 400 cities and communities, and a population of approximately 13 million people. The company was founded in 1886 and is based in Rosemead, California.

Best Companies To Invest In 2012: Pengrowth Energy Corporation (PGH)

Pengrowth Energy Corporation engages in the acquisition, exploration, development, and production of oil and natural gas reserves in the Western Canadian Sedimentary Basin. It primarily explores for crude oil, natural gas, and natural gas liquids in the provinces of Alberta, British Columbia, Saskatchewan, and Nova Scotia. As of December 31, 2010, the company had total proved plus probable reserves of 318.4 millions of barrels of oil equivalent; and had an interest in 8,277 gross producing and 2,463 gross non-producing oil and natural gas wells. Pengrowth Energy Corporation was founded in 1988 and is headquartered in Calgary, Canada.

Best Companies To Invest In 2012: II-VI Incorporated (IIVI)

II-VI Incorporated develops, manufactures, and markets high-technology materials and derivative precision components and products worldwide. It offers a line of precision infrared optical components, such as lenses, output couplers, windows, and mirrors for use in CO2 lasers; and one micron laser components, including modular laser processing heads for fiber lasers, YAG lasers, and other one micron laser systems, as well as beam delivery systems. The company also provides near-infrared optics consisting of waveplates, polarizers, lenses, prisms, and mirrors for visible and near-infrared applications, which are used to control or alter visible or near-infrared energy and its polarization; coated windows used as debris shields in the industrial and medical laser aftermarkets; micro optics and photonic crystal parts for optical communications components; optical and photonic crystal parts for instrumentation and laser applications; optical communication components and functional modules for optical communications; DPSS laser for optical instruments, display, and biotechnology; and components for UV Filters used in early warning missile detection. In addition, it offers military infrared optics comprising missile domes, electro-optical windows and subassemblies, imaging lenses, and other components; and visible materials and fused silica; material processing and refinement products, such as selenium and tellurium metals, and chemicals; and thermoelectric coolers (TECs), including single-stage TECs, micro TECs, multi-stage TECs, planar multi-stage TECs, extended life coolers, thermoelectric thermal reference sources, power generators, and thermoelectric assemblies for use in defense, telecommunication, medical equipment, and other industrial and commercial applications. Further, the company provides silicon carbide products consisting of 6H-SiC (semi-insulating) and 4H-SiC (conducting) poly-types. The company was founded in 1971 and is based in Saxonburg, Pennsylvania.

Best Companies To Invest In 2012: Ameron International Corporation (AMN)

AMN Healthcare Services, Inc. provides healthcare staffing and clinical workforce management solutions in the United States. The company?s Nurse and Allied Healthcare Staffing segment provides staffing solutions for hospitals and other healthcare facilities, including medical, surgical, specialty, licensed practical or vocational, and advanced practice nurses, as well as surgical technologists and dialysis technicians. This segment also offers allied health professionals under the Med Travelers, Club Staffing, and Rx Pro Health brand names to acute-care hospitals and other healthcare facilities, such as skilled nursing facilities, rehabilitation clinics, and retail and mail-order pharmacies. These allied health professionals include physical, surgical, respiratory, and occupational therapists, as well as medical and radiology technologists, speech pathologists, rehabilitation assistants, pharmacists, and pharmacy technicians. Its Locum Tenens Staffing segment places physicians of various specialties, certified registered nurse anesthetists, nurse practitioners, and dentists on a temporary basis as independent contractors with various healthcare organizations, including hospitals, medical groups, occupational medical clinics, individual practitioners, networks, psychiatric facilities, government institutions, and managed care entities. The company?s Physician Permanent Placement Services segment provides permanent physician placement services to hospitals, healthcare facilities, and physician practice groups under the Merritt Hawkins and Kendall & Davis brand names. This segment also offers specialty offerings, including internal medicines, family practices, and surgeries. Its Home Healthcare Services segment provide home healthcare services to individuals with acute-care illness, long-term chronic health conditions, permanent disabilities, terminal illnesses, and post-procedural needs. The company was founded in 1985 and is headquartered in San Diego, California.
Advisors’ Opinion:
  • By Bill At 2011-8-26Ameron International Corporation (AMN), a California-based firm that makes water transmission lines, fiberglass-composite pipe for transporting oil, and infrastructure-related products like ready-mix concrete and lighting poles — just the kind of company that could benefit from the federal stimulus package’s infrastructure funding.Having lived through both his own family’s fall from financial grace (following his father’s death when Benjamin was a young man), and, later, through the Great Depression, it’s no surprise that Graham focused as much on preserving capital and limiting losses as he did on producing big gains. He liked stable, conservatively financed companies, not speculative gambles, and Ameron fits the bill. One example of why: its strong current ratio of 2.87. Graham used the current ratio (current assets/current liabilities) to get an idea of a company’s liquidity (and the credit crisis has shown us all how important liquidity is).

Best Companies To Invest In 2012: The Wendy’s Company (WEN)

The Wendy’s Company operates as a quick-service hamburger company in the United States. The company, through its subsidiary, Wendy’s International, Inc., operates as a franchisor of the Wendy’s restaurant system. As of December 26, 2011, the Wendy’s system comprised approximately 6,500 franchise and company restaurants in the United States and the United States territories, as well as in 26 other countries worldwide. The company was formerly known as Wendy’s/Arby’s Group, Inc. and changed its name to The Wendy’s Company in July 2011. The Wendy’s Company was founded in 1884 and is headquartered in Dublin, Ohio.
Advisors’ Opinion:
  • By Hilary Kramer At 2011-10-28Fast food franchisor Wendy’s/Arby’s Group(NYSE: WEN) rallied after its most recent earnings report revealed some optimism on the hoped-for sale of Arby’s and promising new hamburger offerings, but it has since given back all of those gains and more on overall market weakness.I continue to feel the company is getting back on the right track with its menu changes (its new fries have already been well received), which will increase customer traffic. I like the stock at current prices and expect some of these catalysts to have more of an impact in the second half of the year. There remains the possibility as well that Wendy’s will get acquired.

Best Companies To Invest In 2012: Savient Pharmaceuticals Inc (SVNT)

Savient Pharmaceuticals, Inc., a specialty biopharmaceutical company, focuses on developing KRYSTEXXA, a biologic PEGylated uricase in the United States. The KRYSTEXXA is being developed as a treatment for chronic gout in patients refractory to conventional therapy. The company also sells and distributes branded and generic versions of oxandrolone, a drug used to promote weight gain following involuntary weight loss. It sells its products directly to drug wholesalers. The company, formerly known as Bio-Technology General Corp. and changed its name to Savient Pharmaceuticals, Inc. in June 2003. Savient Pharmaceuticals, Inc. was founded in 1980 and is headquartered in East Brunswick, New Jersey.

The Best Dividend Stocks 2012 - 20 Companies Increasing Dividends

The bull market of 2012 continues, and stocks keep adding to their year-to-date totals. On the dividend front, the nascent year is turning out to be one of the best that income investors have witnessed in a very long time. There have been a record number of companies increasing their dividend payouts so far this year, and this week we saw another batch of high-profile outfits thickening shareholders’ wallets. Here are 20 companies that are increasing dividends:
Canadian gold-mining giant The Best Dividend Stocks 2012 Agnico-Eagle Mines (NYSE:AEM) dug up a 25% shinier dividend nugget, raising its quarterly payout to 20 cents per share. The new dividend yield, based on the Feb. 16 closing price of $36.59 (the day the dividend was announced), is 2.19%.
Diversified specialty-chemical producer Albermarle Corp. (NYSE:ALB) went into the fiscal lab and came out with a 14.3% increase in its quarterly dividend, to 20 cents per share. The new dividend is payable Apr. 1 to shareholders of record as March 15. The new dividend yield, based on the Feb. 15 closing price of $64.71, is 1.24%.
Beverage giant The Best Dividend Stocks 2012 Coca-Cola Co. (NYSE:KO) popped the cap on its quarterly payout, pouring an 8.5% dividend increase, to 51 cents per share. The new dividend is payable Apr. 1 to shareholders of record as of March 15. The new dividend yield, based on the Feb. 16 closing price of $68.86, is 2.96%.
Cable TV behemoth Comcast (NASDAQ:CMCSA) added 44% to its quarterly dividend, hiking its payout to 16.25 cents per share. The new payout will be made Apr. 25 to shareholders of record as of Apr. 4. The new dividend yield, based on the Feb. 15 closing price of $28.52, is 2.28%.
Electrical-parts maker The Best Dividend Stocks 2012 Cooper Industries (NYSE:CBE) turned up the dial on its quarterly dividend, increasing the voltage to shareholders by 7%, to 31 cents per share. The new dividend is payable Apr. 2 to shareholders of record as of Feb. 29. The new dividend yield, based on the Feb. 14 closing price of $60.83, is 2.04%.
Oil-and-gas exploration and production giant The Best Dividend Stocks 2012 Devon Energy (NYSE:DVN) upped its quarterly payout to shareholders by about 18%, to 20 cents per share. The new dividend is payable March 30 to shareholders of record as of March 15. The new dividend yield, based on the Feb. 15 closing price of $71.70, is 1.12%.
Corporate data-center REIT The Best Dividend Stocks 2012 Digital Realty Trust (NYSE:DLR) stored and delivered a new quarterly dividend that is 7.4% higher, to 73 cents per share. The new dividend is payable March 30 to holders of record March 15. The new dividend yield, based on the Feb. 15 closing price of $69.19, is 4.22%.
Natural gas and crude oil producer The Best Dividend Stocks 2012 EOG Resources (NYSE:EOG) turned up the BTUs on its quarterly payout by 6.25%, to 17 cents per share. The new dividend is payable Apr. 30 to shareholders of record as of Apr. 16. The new dividend yield, based on the Feb. 16 closing price of $117.62, is .58%.
Credit-reporting and information agency Equifax (NYSE:EFX) upped its quarterly payment to shareholders by 12.5%, to 18 cents per share. The new dividend is payable March 15 to shareholders of record as of Feb. 23. The new dividend yield, based on the Feb. 10 closing price of $42.63, is 1.69%.
Financial-payment technology firm Fidelity National Information Services (NYSE:FIS) increased its payment to shareholders by 2.8%, to 20 cents per share. The new dividend is payable on March 30 to shareholders of record as of March 16. The new dividend yield, based on the Feb. 13 closing price of $29.00, is 2.76%.
Athletic footwear retailer The Best Dividend Stocks 2012 Foot Locker (NYSE:FL) gave shareholders a win in the form of a 9% jump in its quarterly payout. The new dividend can be worn on Apr. 27 to shareholders of record as of Apr. 13. The new dividend yield, based on the Feb. 14 closing price of $27.68, is 2.60%.
Electrical-components maker Hubbell Incorporated (NYSE:HUB-B) sparked an 8% increase in its quarterly payout, to 41 cents per share. The new dividend is payable Apr. 11 to shareholders of record as of March 5. The new dividend yield, based on the Feb. 10 closing price of $74.97, is 2.19%.
Power provider Northeast Utilities (NYSE:NU) juiced its dividend by approximately 7.3%, to 29.375 cents per share. The new dividend will be paid on March 30 to shareholders of record as of March 1. The new dividend yield, based on the Feb. 15 closing price of $35.52, is 3.32%.
Energy and utility holding company PPL Corporation (NYSE:PPL) sent a new dividend to shareholders that’s approximately 2.86% higher. The new payout of 36 cents per share is payable Apr. 2 to shareholders of record as of March 9. The new dividend yield, based on the Feb. 10 closing price of $28.45, is 5.06%.
Utility and energy producer The Best Dividend Stocks 2012 SCANA Corp. (NYSE:SCG) upped its payment to shareholders by a penny, to 49.5 cents per share. The new dividend represents an increase of 2.1% over the previous payout and will be sent out on Apr. 1 to shareholders of record as of March 9. The new dividend yield, based on the Feb. 15 closing price of $44.60, is 4.44%.
Television and internet content producer Scripps Network Interactive (NYSE:SNI), owner of HGTV, the Food Network and the Travel Channel, improved shareholders’ portfolios with a 20% tastier all-expenses paid dividend trip, to 12 cents per share. The new payout will be made March 9 to shareholders of record as of Feb. 29. The new dividend yield, based on the Feb. 16 closing price of $43.59, is 1.10%.
Paint maker Sherwin Williams (NYSE:SHW) put a fresh coat of fiscal shine on shareholders’ portfolios, raising its quarterly payout by 7%, to 39 cents per share. The new dividend is payable March 9 to shareholders of record as of Feb. 27. The new dividend yield, based on the Feb. 15 closing price of $99.22, is 1.57%.
Life-science technology company The Best Dividend Stocks 2012 Sigma Aldrich (NASDAQ:SIAL) grew its quarterly dividend by 11.1%, to 20 cents per share. The new dividend is payable March 15 to shareholders of record as of March 1. The new dividend yield, based on the Feb. 14 closing price of $70.32, is 1.14%.
Energy infrastructure company TransCanada Corp. (NYSE:TRP) is sending more oil through the dividend pipeline, upping its payout to shareholders 5%, to 44 cents per share. The new dividend is payable Apr. 30 to shareholders of record as of March 30. The new dividend yield, based on the Feb. 14 closing price of $42.17, is 4.17%.
Insurance broker Willis Group Holdings (NYSE:WSH) upped the premium it pays shareholders by 3.8%, to 27 cents per share. The new dividend is payable on Apr. 13 to shareholders of record at March 31. The new dividend yield, based on the Feb. 14 closing price of $38.67, is 2.79%.