/* Article Data (Server Side) article (o): [object Object] WSODIssue (s): |26524646|44998|99357 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Insiders bought shares at 3 rallying stocks under 5 bucks Link (s): http://folionation.squarespace.com/news/2014/8/1/insiders-bought-shares-at-3-rallying-stocks-under-5-bucks.html Thumbnail (s): DocumentDate_raw (n): 1406908260000 DocumentDate (s): August 1, 2014 DocumentDate_smart (s): Aug 1, 2014 DocumentKey (s): 1107-290734296785734947705-0BLRA7EL8U369ALDHK5Q52OTOF ContentType (s): Article TrackingPixel (s): Content (s):

Employees seem to have faith in these rallying stocks under 5 dollars. Will the market agree?

It's been a bad year for small-cap stocks, companies with a market capitalization of $2 billion or less.

The Russell 2000, the benchmark index used to track smaller companies, has underperformed the S&P 500 for the first time in 5 years. 

In fact, small caps have underperformed so much they're on track for their worst relative performance in 16 years—assuming the current trend continues through the end of 2014. 

Why are these companies underperforming? Perhaps because these companies have done so well since the recession, prompting valuation concerns among investors and even the Fed. Small-caps also benefit disproportionately from a strong US economy, because they're likely to do pretty much all their business here. 

Still it's a rough environment for small-cap investors. So we decided to track down some by looking for signs of insider buying. Insider buying means employees at the company have been acquiring more stock.

This is usually more meaningful at a smaller company than a larger one because the information any one employee has is more likely to influence the company's progress as a whole. 

Do you think employees at these three firms are right to be bullish on the stock? The fact that they are all rallying above their 20-day, 50-day, and 200-day simple moving averages suggests it's possible. 

 

Click on the interactive chart to view data over time. 

 

1. Amyris, Inc. (AMRS, Earnings, Analysts, Financials): Amyris, Inc., an integrated renewable products company, offers renewable compounds for a variety of markets. Market cap at $278.15M, most recent closing price at $3.65.

 

 

2. American Superconductor Corporation (AMSC, Earnings, Analysts, Financials): Provides wind turbine designs and electrical control systems primarily in North America, Europe, and the Asia-Pacific. Market cap at $120.26M, most recent closing price at $1.93.

 

 

3. Ambassadors Group Inc. (EPAX, Earnings, Analysts, Financials): Ambassadors Group, Inc., an educational company, organizes and promotes educational travel programs for students, athletes and professionals in the United States and internationally. Market cap at $64.2M, most recent closing price at $3.78.

 

 

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

 

relatedData (o:Array(16)): 0 (o): [object Object] Headline (s): Amazon creates startup service to find the next GoPro Teaser (s): The company wants to be the go-to retail platform for emerging products. Amazon is offering a new service that will make life easier for start-up founders. Source (s): Fortune DocumentDate (s): 19 minutes ago DocumentDate_raw (n): 1438104375000 Link (s): http://fortune.com/2015/07/28/amazon-startup-launchpad/ DocumentKey (s): HTTPfortune.com/2015/07/28/amazon-startup-launchpad/ DMSourceID (s): Google ContentType (s): Article 1 (o): [object Object] Headline (s): US Homeownership Drops To Its Lowest Level Since 1967 Teaser (s): Data released by the Census Bureau on Tuesday reveal that the U.S. homeownership rate stood at 63.4% for the second quarter of 2015. Source (s): TIME DocumentDate (s): 19 minutes ago DocumentDate_raw (n): 1438104375000 Link (s): http://time.com/money/3975212/homeownership-rate-record-low/ DocumentKey (s): HTTPtime.com/money/3975212/homeownership-rate-record-low/ DMSourceID (s): Google ContentType (s): Article 2 (o): [object Object] Headline (s): Why China's stumbling stock market won't trip up US earnings Teaser (s): An electronic board on a pedestrian overpass in Shanghai's financial district displays Shanghai and Shenzhen stock indices. By. Source (s): MarketWatch DocumentDate (s): 36 minutes ago DocumentDate_raw (n): 1438103402000 Link (s): http://www.marketwatch.com/story/why-chinas-stumbling-stock-market-wont-trip-up-us-earnings-2015-07-28 DocumentKey (s): HTTPwww.marketwatch.com/story/why-chinas-stumbling-stock-market-wont-trip-up-us-earnings-2015-07-28 DMSourceID (s): Google ContentType (s): Article 3 (o): [object Object] Headline (s): Pilot training fell short in Virgin Galactic crash, investigators say Teaser (s): CAPE CANAVERAL, Fla. Test pilots at the helm of a Virgin Galactic passenger spaceship that crashed last year were unaware of the catastrophic consequences of unlocking the craft's moveable tail section too early because of poor training, investigators ... Source (s): Reuters DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1438101000000 Link (s): http://www.reuters.com/article/2015/07/28/us-space-spaceshiptwo-accident-idUSKCN0Q21YT20150728 DocumentKey (s): HTTPwww.reuters.com/article/2015/07/28/us-space-spaceshiptwo-accident-idUSKCN0Q21YT20150728 DMSourceID (s): Google ContentType (s): Article 4 (o): [object Object] Headline (s): Ford Has Strength in North America Beyond F-150: CFO Teaser (s): Bob Shanks, chief financial officer of Ford Motor Co., talks about the automaker's second-quarter profit, sales of the new aluminum-bodied F-150 pickup truck, and outlook for vehicle sales in Europe. Source (s): Bloomberg DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1438099650000 Link (s): http://www.bloomberg.com/news/videos/2015-07-28/ford-has-strength-in-north-america-beyond-f-150-cfo DocumentKey (s): HTTPwww.bloomberg.com/news/videos/2015-07-28/ford-has-strength-in-north-america-beyond-f-150-cfo DMSourceID (s): Google ContentType (s): Article 5 (o): [object Object] Headline (s): US consumer confidence drops in July Teaser (s): NEW YORK: US consumer confidence weakened in July, due in part to a less optimistic outlook on the labor market, according to a private sector report released on Tuesday. Source (s): Economic Times DocumentDate (s): 3 hours ago DocumentDate_raw (n): 1438092900000 Link (s): http://economictimes.indiatimes.com/news/international/business/us-consumer-confidence-drops-in-july/articleshow/48256093.cms DocumentKey (s): HTTPeconomictimes.indiatimes.com/news/international/business/us-consumer-confidence-drops-in-july/articleshow/48256093.cms DMSourceID (s): Google ContentType (s): Article 6 (o): [object Object] Headline (s): Strong home sales, limited supply lift US home prices in May Teaser (s): WASHINGTON (AP) - U.S. home prices rose steadily in May, pushed higher by a healthy increase in sales this year. The Standard & Poor's/Case-Shiller 20-city home price index climbed 4.9 percent in May from 12 months earlier, down slightly from a 5 ... Source (s): Chron.com DocumentDate (s): 4 hours ago DocumentDate_raw (n): 1438088742000 Link (s): http://www.chron.com/news/article/US-home-prices-rose-4-9-pct-in-May-lifted-by-6409596.php DocumentKey (s): HTTPwww.chron.com/news/article/US-home-prices-rose-4-9-pct-in-May-lifted-by-6409596.php DMSourceID (s): Google ContentType (s): Article 7 (o): [object Object] Headline (s): VW surpasses Toyota as world's largest automaker in first half of 2015 Teaser (s): Volkswagen surpassed Toyota as the world's largest automaker in the first half of 2015, fulfilling a long-held goal, despite a sales slump in the U.S.. Volkswagen sold 5.04 million vehicles in the first six months of the year, edging Toyota's 5.02 ... Source (s): USA TODAY DocumentDate (s): 5 hours ago DocumentDate_raw (n): 1438085842000 Link (s): http://www.usatoday.com/story/money/2015/07/28/volkswagen-surpasses-toyota-worlds-largest-automaker-first-half-2015/30772509/ DocumentKey (s): HTTPwww.usatoday.com/story/money/2015/07/28/volkswagen-surpasses-toyota-worlds-largest-automaker-first-half-2015/30772509/ DMSourceID (s): Google ContentType (s): Article 8 (o): [object Object] Headline (s): Wall Street rises after China market steadies Teaser (s): U.S. stocks were higher on Tuesday and were on track to break a five-day losing streak as a selloff in Chinese stocks eased and investors shifted focus to corporate earnings. Source (s): Reuters DocumentDate (s): 6 hours ago DocumentDate_raw (n): 1438083260000 Link (s): http://www.reuters.com/article/2015/07/28/us-markets-stocks-idUSKCN0Q218E20150728 DocumentKey (s): HTTPwww.reuters.com/article/2015/07/28/us-markets-stocks-idUSKCN0Q218E20150728 DMSourceID (s): Google ContentType (s): Article 9 (o): [object Object] Headline (s): Old Russian Submarine Wreck Found in Swedish Waters Teaser (s): STOCKHOLM—The Swedish military said Tuesday that a wrecked submarine discovered recently just off the country's east coast did belong to Russia but has been lying on the sea bed for almost a century. Source (s): Wall Street Journal DocumentDate (s): 8 hours ago DocumentDate_raw (n): 1438076299000 Link (s): http://www.wsj.com/articles/wrecked-submarine-found-in-swedish-waters-1438076278 DocumentKey (s): HTTPwww.wsj.com/articles/wrecked-submarine-found-in-swedish-waters-1438076278 DMSourceID (s): Google ContentType (s): Article 10 (o): [object Object] WSODIssue (s): |86785487|6616168|9622118|73328048 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): US infrastructure is aging and in dire need of a refresh Link (s): http://folionation.squarespace.com/news/2015/7/27/us-infrastructure-is-aging-and-in-dire-need-of-a-refresh.html Thumbnail (s): DocumentDate_raw (n): 1438028640000 DocumentDate (s): July 27, 2015 DocumentDate_smart (s): 21 hours ago DocumentKey (s): 1107-290734296785735426843-0PVE5NC2CPSCD1QQK379IT7TT4 ContentType (s): Article TrackingPixel (s): Teaser (s):

Our country relies on it, but very few much-needed improvements to US infrastructure are taking place.

New York Governor Andrew Cuomo and Vice President Joe Biden made a joint appearance Monday afternoon to announce major infrastructure upgrades to LaGuardia Airport. Adding to Biden's "third-world country" description of LaGuardia, Cuomo said the airport was "un-New York" and revealed that construction on a new LaGuardia airport will begin next year. The project is expected to cost the Port Authority of NY & NJ $4 billion.

LaGuardia is but one example of US infrastructure that badly needs an update. There are the Hudson River rail tunnels—which service Amtrak and NJ Transit trains between New York and New Jersey—the Albion River Bridge in coastal California and the nation's wastewater and drinking water systems, to name a few.

According to the American Society of Civil Engineers' 2013 report card, which assesses and grades all segments of US infrastructure, things are in poor shape. The overall grade was a D+, and an estimated $3.6 trillion would need to be invested in infrastructure by 2020 to improve the situation.

Per Governing.com, the five largest infrastructure projects currently underway in the US are the Dulles International Airport Corridor Metrorail Project, Otay Mesa East port facility construction, modernization of O'Hare International Airport, expansion of the Crescent Corridor freight rail network and replacing the Alaskan Way Viaduct. Combined the projects will cost $21.4 billion. 

While there are trillions that need to be invested in US infrastructure, the fact remains that they haven't been yet. Perhaps this is why infrastructure ETFs with exposure to potential US projects haven't been performing well. In fact, all of the following funds have underperformed the market on a monthly quarterly and year-to-date basis. 

Could the LaGuardia airport project help some of these ETFs turn things around?

Click on the interactive chart to view data over time. 

1. Deutsche X-trackers S&P Hedged Global Infrastructure ETF (DBIF, Earnings, Analysts, Financials): Seeks to track the performance of equity securities of infrastructure issuers in developed markets. Net assets under management: $3.53M, most recent closing price: $23.77.

The fund has underperformed the market by -3.22% over the last month, -5.54% over the last quarter and -4.66% since the beginning of the year.

 

2. SPDR S&P Global Infrastructure ETF (GII, Earnings, Analysts, Financials): Seeks to reflect the stock performance of companies within the infrastructure industry, principally those engaged in management, ownership and operation of infrastructure and utility assets. Net assets under management: $97.83M, most recent closing price: $46.08.

The fund has underperformed the market by -4.46% over the last month, -8.40% over the last quarter and -3.64% since the beginning of the year.

 

3. iShares Global Infrastructure ETF (IGF, Earnings, Analysts, Financials): Seeks to replicate the S&P Global Infrastructure Index. Net assets under management: $1.20B, most recent closing price: $40.05.

The fund has underperformed the market by -4.09% over the last month, -8.00% over the last quarter and -3.79% since the beginning of the year.

 

4. DJ Brookfield Global Infrastructure ETF (TOLZ, Earnings, Analysts, Financials): Seeks to replicate Dow Jones Brookfield Global Infrastructure Composite Index. Net assets under management: $25.99M, most recent closing price: $40.55.

The fund has underperformed the market by -5.60% over the last month, -10.04% over the last quarter and -7.10% since the beginning of the year.

 

(Monthly return data sourced from Zacks Investment Research. Assets data sourced from Yahoo! Finance. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

11 (o): [object Object] WSODIssue (s): |21167564|45304298|210195|90065765 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): What is NCR, the company behind ATMs, worth? Link (s): http://folionation.squarespace.com/news/2015/7/27/what-is-ncr-the-company-behind-atms-worth.html Thumbnail (s): DocumentDate_raw (n): 1438016040000 DocumentDate (s): July 27, 2015 DocumentDate_smart (s): Jul 27, 2015 DocumentKey (s): 1107-290734296785735426587-1771A52F86OFS0TR77MQT0M8KF ContentType (s): Article TrackingPixel (s): Teaser (s):

How much is that ATM manufacturer in the window? In the case of NCR, it's $10 billion.

ATM-maker NCR Corporation (NCR), which boasts a market capitalization of $5.2 billion, is in play. Two private equity firms—Blackstone (BX) and Carlyle (CG)—are teaming up to buy the company for $40 a share, or $10 billion.

NCR is in the business of running transactions. This may seem boring, but last year, it generated $6.5 billion in annual sales and is expected to see $6.81 billion at the end of 2015.

The stock is trading at a discount to the bidding price, but it is not inexpensive. Its P/E is 31.33, while the forward P/E is around 10.

With the way shares are trading, it is uncertain if the buyout will happen at all. Current shareholders are valuing the stock at the right level because the purchase price would include NCR’s roughly $3.2 billion debt.

Another reason is that the electronic payment process industry is a better investing option than NCR. There is already strong interest for cryptocurrency, but that is not an investment idea. PayPal (PYPL) is a legitimate business that holds significant potential. The company made $2.16 billion in revenue in Q4 2014.

PayPal is growing. The company acquired Xoom, a digital remittance company. It also bought Paydiant, a white-label mobile wallet platform. Lastly, PayPal’s Braintree unit services businesses by providing them with online payment services.

NCR may or may not be bought out, but if it is, there is some upside. For investors too impatient to wait, PayPal is another transaction-centric company that has the potential.

Written by Chris Lau

 

Click on the interactive chart to view data over time. 

1. The Blackstone Group L.P. (BX, Earnings, Analysts, Financials): Provides alternative asset management and financial advisory services worldwide. Market cap at $45.26B, most recent closing price at $38.26.

 

 

2. The Carlyle Group LP (CG, Earnings, Analysts, Financials): Specializes in direct and fund of fund investments. Market cap at $8.43B, most recent closing price at $26.15.

 

 

 

3. NCR Corporation (NCR, Earnings, Analysts, Financials): Provides technologies and services that enable businesses to connect, interact, and transact with their customers in the financial industry worldwide. Market cap at $5.20B, most recent closing price at $30.70.

 

 

4. PayPal Holdings Inc. (PYPL, Earnings, Analysts, Financials): Operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Market cap at $45.14B, most recent closing price at $37.0.

 

 

(Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

12 (o): [object Object] WSODIssue (s): DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): China takes a plunge Link (s): http://folionation.squarespace.com/news/2015/7/27/china-takes-a-plunge.html Thumbnail (s): DocumentDate_raw (n): 1438009440000 DocumentDate (s): July 27, 2015 DocumentDate_smart (s): Jul 27, 2015 DocumentKey (s): 1107-290734296785735426457-502HGIE57D4J1H51JRA71KQVBM ContentType (s): Article TrackingPixel (s): Teaser (s):

The Chinese stock market had a terrible Monday, falling the most it has in one day in eight years.

After three weeks of government-induced calm, the Chinese stock market dropped by over 8 percent on Monday, its biggest tumble since February 2007. The benchmark Shanghai Composite Index fell 8.5 percent, the tech-heavy Shenzhen Composite slid 7 percent and the CSI300 index, which includes the largest firms on the Shanghai and Shenzhen indexes, declined 8.5 percent.

Monday's Chinese stock market crash calls into question the sustainability of the Chinese government's intervention, which came in the midst of China's bear market earlier this month. After rising 150 percent between June 2014 and June 2015, the Shanghai Composite took a turn for the worse on June 12, losing nearly 30 percent by July 7. The Shenzen Composite lost approximately 40 percent over the same period.

To stop the collapse, the Chinese government officially prohibited major shareholders from selling shares for six months. Unofficially, the government seems to have encouraged 21 major brokerages to agree to buy $120 billion yuan worth of stocks in a market-stabilization attempt and 28 private companies to call off their IPOs.

The Deutsche X-trackers Harvest CSI300 ETF China A-Shares ETF (ASHR), which tracks the CSI300, is down 9.28 percent today as of 10:41 AM EST. Over a three-month period, the ETF is down 20.97 percent.

13 (o): [object Object] WSODIssue (s): DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): FCC gives AT&T the thumbs-up to acquire with DirecTV Link (s): http://folionation.squarespace.com/news/2015/7/24/fcc-gives-att-the-thumbs-up-to-acquire-with-directv.html Thumbnail (s): DocumentDate_raw (n): 1437765840000 DocumentDate (s): July 24, 2015 DocumentDate_smart (s): Jul 24, 2015 DocumentKey (s): 1107-290734296785735426397-03UGVFI3CQ5O7T76ILGCBDB0US ContentType (s): Article TrackingPixel (s): Teaser (s):

It was widely expected to happen, and thanks to the FCC, the AT&T-DirecTV merger is officially good to go.

Time Warner Cable (TWX) and Comcast (CMCSA) weren't able to do it, but AT&T (T) and DirecTV (DTV) are officially becoming one. As expected, the Federal Communications Commission announced on Friday that it approved AT&T's $49-billion acquisition of DirecTV. Thanks to the FCC's decision, which was the last regulatory hurdle for the merger, the resulting company will now be the biggest pay TV provider in the country. 

Both stocks were up nearly 2 percent as of 3:02 PM EST. 

Meanwhile, Comcast and Time Warner are down 3.45 percent and 1.52 percent, respectively, as of 3:10 PM EST. Charter Communications (CHTR)—which hopes to merge with Time Warner and, according to the Wall Street Journal, has a better chance of succeeding than the failed Comcast bid—is down 0.67 percent.

14 (o): [object Object] WSODIssue (s): |242250|167459|261303|263366 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Intel moves from the PC to the IoT Link (s): http://folionation.squarespace.com/news/2015/7/24/intel-moves-from-the-pc-to-the-iot.html Thumbnail (s): DocumentDate_raw (n): 1437754140000 DocumentDate (s): July 24, 2015 DocumentDate_smart (s): Jul 24, 2015 DocumentKey (s): 1107-290734296785735424264-4A86BVCAR5T9CVV992EP9VN1HA ContentType (s): Article TrackingPixel (s): Teaser (s):

Once know for its work with PCs, Intel is embracing a new sector: the Internet of Things, or IoT.

The Internet of Things, or IoT, has become quite popular. It is now so mainstream that even Intel (INTC), a chip giant in the computer world, is talking about it. The firm is adjusting to a permanently declining consumer computing market. Should everyone follow suit and embrace IoT?

Semiconductor manufacturer STMicroelectronics (STM) is another big player in the IoT field. Back in May, the company showcased the ways its 32-bit microcontroller board saves energy, improved efficiency, and enhanced services for the “smart city. " BlackBerry (BBRY) is also focusing its efforts on IoT. Intel selected the firm’s QNX system to be used in smart cars. Additionally, Sierra Wireless (SWIR) is expanding its device-to-cloud solutions so that it includes wireless connectivity services for the IoT.

Intel’s second-quarter earnings confirmed that the decline in desktops and notebooks sales was alarmingly high. The PC business fell, but the server—data center—business grew by 10 percent. NAND revenue grew 40 percent, thanks to a healthy IoT segment. During the second quarter, Intel earned $0.55 per share on revenue of $13.2 billion, beating the consensus estimate of earnings of $0.50 per share on $13.04 billion. In the next quarter, the company expects to see $14.3 billion in revenue.

Mobile is still a struggle for Intel, but the company has its Atom x3, x5 and x7 processors on deck. A 4G version of the x3 will start shipping out in 2016. Integrating a modem network with the processor is giving Intel a competitive advantage.

Intel is managing the IoT segment conservatively. Potential growth from this sector is high, but Intel will limit capital expenditure until the market gets bigger. Investors are not yet recognizing the potential of IoT, which is why the stock is approaching a yearly low. When mobile and IoT become more meaningful to earnings, the stock’s performance could very well improve.

Written by Chris Lau

Disclosure: Author holds shares of BlackBerry


Click on the interactive chart to view data over time. 

 

1. BlackBerry Limited (BBRY, Earnings, Analysts, Financials): Provides wireless communications solutions worldwide. Market cap at $3.95B, most recent closing price at $7.61.

 

 

2. Intel Corporation (INTC, Earnings, Analysts, Financials): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap at $134.40B, most recent closing price at $28.59.

 

 

3. STMicroelectronics NV (STM, Earnings, Analysts, Financials): Engages in the design, development, manufacture, and marketing of a range of semiconductor integrated circuits and discrete devices. Market cap at $6.79B, most recent closing price at $7.99.

 

 

4. Sierra Wireless Inc. (SWIR, Earnings, Analysts, Financials): Provides wireless solutions for the machine-to-machine (M2M) and mobile computing markets. Market cap at $780.71M, most recent closing price at $24.34.

 

 

(Monthly return data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

15 (o): [object Object] WSODIssue (s): |5079907|3732405 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Higher interest rates are coming to the US Link (s): http://folionation.squarespace.com/news/2015/7/23/higher-interest-rates-are-coming-to-the-us.html Thumbnail (s): DocumentDate_raw (n): 1437665940000 DocumentDate (s): July 23, 2015 DocumentDate_smart (s): Jul 23, 2015 DocumentKey (s): 1107-290734296785735423173-4PSO2QVEADG07F8MAC27VOTAN1 ContentType (s): Article TrackingPixel (s): Teaser (s):

The interest rate hike is coming! The interest rate hike is coming! So bring on the currency ETFs.

The United States is setting out to raise interest rates later this year. This is generally bad news for stocks since they compete with bonds and interest-bearing assets. When rates go up, income-generating holdings become more attractive. This suggests that investors should prepare for higher rates by moving to fixed-income assets. Currency ETFs are another security that would give investors a hedge, especially when holdings are denominated in a currency other than the US dollar.

The good news for the market is that rates will increase slowly and gradually. This tightening is required to limit the overheating of the economy. A fast-growing market would mean inflation—this is a risk the Fed wants managed.

The plans for rate increase contrasts with moves other countries are making. Canada lowered its overnight rate to 0.5 percent on July 15, with the Bank of Canada citing the negative impact of global weakness on commodities. Canada’s reliance on oil and raw materials is significant. In 2015, the fall in oil production hurt Alberta. This in turn hurt Canada’s GDP, bringing the country officially into a recession.

The market’s response to Canada’s interest rate cut was quick. It was not alone. As Greek’s bailout unfolded in Europe, the euro also fell against the US dollar:

CurrencyShares® Euro Trust (FXE) and CurrencyShares® Canadian Dollar (FXC) are two currency ETFs that would fall against higher interest rates in the US. Currencies other than the US dollar will weaken further. By exercising caution over non-US assets and foreign currency, investors can be ready when rates finally rise.

Written by Chris Lau

Click on the interactive chart to view data over time. 

 

1. CurrencyShares Canadian Dollar (FXC, Earnings, Analysts, Financials): Seeks to track the price of the Canadian Dollar, net of trust expenses, and aims to reflect the price of the Canadian Dollar. Net assets: $218.96M, most recent closing price: $76.23.

 

 

2. CurrencyShares Euro Trust (FXE, Earnings, Analysts, Financials): Seeks to reflect the price in USD of the Euro. Net assets: $404.81M, most recent closing price: $107.71

 

 

 

(Simple moving average data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

*/ Insiders bought shares at 3 rallying stocks under 5 bucks

Insiders bought shares at 3 rallying stocks under 5 bucks

Employees seem to have faith in these rallying stocks under 5 dollars. Will the market agree?

It's been a bad year for small-cap stocks, companies with a market capitalization of $2 billion or less.

The Russell 2000, the benchmark index used to track smaller companies, has underperformed the S&P 500 for the first time in 5 years. 

In fact, small caps have underperformed so much they're on track for their worst relative performance in 16 years—assuming the current trend continues through the end of 2014. 

Why are these companies underperforming? Perhaps because these companies have done so well since the recession, prompting valuation concerns among investors and even the Fed. Small-caps also benefit disproportionately from a strong US economy, because they're likely to do pretty much all their business here. 

Still it's a rough environment for small-cap investors. So we decided to track down some by looking for signs of insider buying. Insider buying means employees at the company have been acquiring more stock.

This is usually more meaningful at a smaller company than a larger one because the information any one employee has is more likely to influence the company's progress as a whole. 

Do you think employees at these three firms are right to be bullish on the stock? The fact that they are all rallying above their 20-day, 50-day, and 200-day simple moving averages suggests it's possible. 

 

Click on the interactive chart to view data over time. 

<p>Your browser does not support iframes.</p>

 

1. Amyris, Inc. (AMRS, Earnings, Analysts, Financials): Amyris, Inc., an integrated renewable products company, offers renewable compounds for a variety of markets. Market cap at $278.15M, most recent closing price at $3.65.

 

 

2. American Superconductor Corporation (AMSC, Earnings, Analysts, Financials): Provides wind turbine designs and electrical control systems primarily in North America, Europe, and the Asia-Pacific. Market cap at $120.26M, most recent closing price at $1.93.

 

 

3. Ambassadors Group Inc. (EPAX, Earnings, Analysts, Financials): Ambassadors Group, Inc., an educational company, organizes and promotes educational travel programs for students, athletes and professionals in the United States and internationally. Market cap at $64.2M, most recent closing price at $3.78.

 

 

Analyze These Ideas: Getting Started

Read descriptions for all companies mentioned Access a performance overview for all stocks in the list Compare analyst ratings for the companies mentioned Compare analyst ratings to annual returns for stocks mentioned Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)

Dig Deeper: Access Company Snapshots, Charts, Filings

Amyris, Inc.(AMRS, Chart, Download SEC Filings) American Superconductor Corporation(AMSC, Chart, Download SEC Filings) Ambassadors Group Inc.(EPAX, Chart, Download SEC Filings)

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member.

 

Articles