/* Article Data (Server Side) article (o): [object Object] Content (s): Article Not Found. relatedData (o:Array(16)): 0 (o): [object Object] Headline (s): Alcoa's warning of smelter closures shows impact of falling premiums Teaser (s): NEW YORK (Reuters) - A warning by Alcoa that it may reduce smelting capacity is the first concrete sign that lower delivery premiums for aluminum are threatening producers amid low futures prices, traders and industry sources said. Source (s): Reuters DocumentDate (s): 18 minutes ago DocumentDate_raw (n): 1425685725000 Link (s): http://www.reuters.com/article/2015/03/06/us-alcoa-capacity-premiums-idUSKBN0M228B20150306 DocumentKey (s): HTTPwww.reuters.com/article/2015/03/06/us-alcoa-capacity-premiums-idUSKBN0M228B20150306 DMSourceID (s): Google ContentType (s): Article 1 (o): [object Object] Headline (s): Canadian company proposes largest US shopping mall in south Florida Teaser (s): MIAMI (Reuters) - A Canadian company that owns the largest mall in the United States is proposing a more massive Florida shopping complex that could feature a ski slope, sea lion shows, and a manmade lake where patrons can take submarine rides. Source (s): Reuters DocumentDate (s): 41 minutes ago DocumentDate_raw (n): 1425684375000 Link (s): http://www.reuters.com/article/2015/03/06/us-usa-florida-megamall-idUSKBN0M22G020150306 DocumentKey (s): HTTPwww.reuters.com/article/2015/03/06/us-usa-florida-megamall-idUSKBN0M22G020150306 DMSourceID (s): Google ContentType (s): Article 2 (o): [object Object] Headline (s): Dunkin' to stop using whitening agent Teaser (s): Dunkin' Donuts, under pressure from an activist group, has agreed to phase out a controversial whitening agent used in the powered sugar atop some of its donuts. Source (s): USA TODAY DocumentDate (s): 41 minutes ago DocumentDate_raw (n): 1425684375000 Link (s): http://www.usatoday.com/story/money/2015/03/06/dunkin-donuts-fast-food-restaurant-food-safety/24524875/ DocumentKey (s): HTTPwww.usatoday.com/story/money/2015/03/06/dunkin-donuts-fast-food-restaurant-food-safety/24524875/ DMSourceID (s): Google ContentType (s): Article 3 (o): [object Object] Headline (s): Oil on Train in Illinois Derailment Shipped by Mercuria Energy Teaser (s): The crude oil aboard the train involved in a fiery derailment Thursday in Illinois was shipped by a big energy-trading company based in Switzerland. Source (s): Wall Street Journal DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1425682350000 Link (s): http://www.wsj.com/articles/oil-on-train-in-illinois-derailment-shipped-by-mercuria-energy-1425682648 DocumentKey (s): HTTPwww.wsj.com/articles/oil-on-train-in-illinois-derailment-shipped-by-mercuria-energy-1425682648 DMSourceID (s): Google ContentType (s): Article 4 (o): [object Object] Headline (s): Stunning PLCB reversal allows 12-pack beer sales at distributors Teaser (s): Starting today, Pennsylvania beer drinkers can buy a 12-pack at a beer distributor, thanks to a loophole in state liquor code discovered by a sharp-eyed lawyer. Source (s): Philly.com DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1425681000000 Link (s): http://www.philly.com/philly/news/local/20150308_Stunning_PLCB_reversal_allows_12-pack_beer_sales_at_distributors.html DocumentKey (s): HTTPwww.philly.com/philly/news/local/20150308_Stunning_PLCB_reversal_allows_12-pack_beer_sales_at_distributors.html DMSourceID (s): Google ContentType (s): Article 5 (o): [object Object] Headline (s): US oil and natural gas rig count drops by 75 to 1192 Teaser (s): NEW YORK - Oilfield services company Baker Hughes Inc. says the number of rigs exploring for oil and natural gas in the U.S. fell by 75 this week to 1,192 amid depressed oil prices. Source (s): Washington Post DocumentDate (s): 1 hour ago DocumentDate_raw (n): 1425680325000 Link (s): http://www.washingtonpost.com/business/us-oil-and-natural-gas-rig-count-drops-by-75-to-1192/2015/03/06/cbb8b76a-c44f-11e4-a188-8e4971d37a8d_story.html DocumentKey (s): HTTPwww.washingtonpost.com/business/us-oil-and-natural-gas-rig-count-drops-by-75-to-1192/2015/03/06/cbb8b76a-c44f-11e4-a188-8e4971d37a8d_story.html DMSourceID (s): Google ContentType (s): Article 6 (o): [object Object] Headline (s): California unemployment rate drops to 6.9 percent with addition of 67300 jobs in ... Teaser (s): SACRAMENTO, Calif. - California enjoyed its largest monthly job gain in over a year with the addition of 67,300 new positions in January, driving the unemployment rate down to 6.9 percent, a state agency said Friday. Source (s): Fox Business DocumentDate (s): 4 hours ago DocumentDate_raw (n): 1425671550000 Link (s): http://www.foxbusiness.com/markets/2015/03/06/california-unemployment-rate-drops-to-6-percent-with-addition-67300-jobs-in/ DocumentKey (s): HTTPwww.foxbusiness.com/markets/2015/03/06/california-unemployment-rate-drops-to-6-percent-with-addition-67300-jobs-in/ DMSourceID (s): Google ContentType (s): Article 7 (o): [object Object] WSODIssue (s): |4038937|142690|80406910|2440311|73681782 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): February jobs report spooks investors Link (s): http://folionation.squarespace.com/news/2015/3/6/february-jobs-report-spooks-investors.html Thumbnail (s): DocumentDate_raw (n): 1425671040000 DocumentDate (s): March 6, 2015 DocumentDate_smart (s): 2:44 PM DocumentKey (s): 1107-290734296785735259871-2CB7R143J6HHJAETU8Q0T0FU8K ContentType (s): Article TrackingPixel (s): Teaser (s):

The lastest jobs report has investors worried about a rate hike in June. Does that mean stocks are a no-go? 

The Bureau of Labor Statistics released its February jobs report Friday morning. If you're the proud owner of one of the 295,000 non-farm jobs the US economy added last month, you're probably pleased with the results—more or less.

Unemployment fell from 5.7 percent in January to 5.5 percent, the lowest rate since May 2008. February was the 12th straight month to see jobs growth over 200,000. The results beat expectations on both counts, as Wall Street had estimated 235,000 non-farm payroll additions and an unemployment rate of 5.6 percent. 

So far so good. But average hourly earnings rose only 0.1 percent month-over-month, falling short of the expected 0.2 percent rise. 

In a world of normal, straightforward monetary policy, better-than-expected jobs growth might be good news for investors and worse-than-expected wage growth might be bad. After all, consumers with jobs that pay decent wages buy things, sell things and make the financial world go round. But that's not how things have worked in the past seven years. 

Instead, the S&P 500 opened down 9 points, or 0.43 percent, while the Nasdaq opened down 10 points, or 0.22 percent. The fear is that signs of economic recovery will spur the Federal Reserve to raise interest rates from the near-zero levels they've occupied in the wake of the financial crisis. If anything, the uninspiring rise in hourly wages was comforting for investors: John Canally of LPL Financial doubts the "Fed" will change course until wages improve.

For many, however, February's report is a clear sign that the rate will go up at the Fed's June meeting, since keeping it artificially low threatens to create—or exacerbate—a bubble in stocks and other investments. Rate-hike speculation has reached a baffling level of specificity in recent months, with Fed chair Janet Yellen's usage or ommission of the words "patient" and "considerable time" alone generating headlines.

The worry is that raising interest rates will leave monetary policy makers with few tools to combat the low-low inflation and deflation that threaten Japan and the eurozone. Beginning in January, the European Central Bank has embarked on a €1.1 trillion ($1.3 trillion) quanitative easing (QE) program, fighting falling prices and shrinking economies by printing money and buying bonds. Japan is trying something similar. The US halted its own multi-year, multi-trilliion dollar QE program in October.

While US equities' valuations are flirting with nosebleed territory, raising rates could inadvertently lead us to import Europe and Japan's monetary woes.

The fact remains, though, that US employers are hiring again, and that can only be so bad of a sign. The largest job creation was in the food services and drinking places subsector, with 59,000 new jobs. We ran a screen to find some of the companies that may be contributing to this growth. Beginning with the restaurant industry, we narrowed our scope down to stocks with high quarter-over-quarter sales growth, that is, over 25 percent.

Click on the interactive chart to view data over time. 

1. Chipotle Mexican Grill Inc. (CMG, Earnings, Analysts, Financials): Develops and operates fast-casual, fresh Mexican food restaurants in the United States. Market cap at $20.80B, most recent closing price at $670.49.

Sales growth quarter-over-quarter at 26.70 percent.

 

2. Good Times Restaurants Inc. (GTIM, Earnings, Analysts, Financials): Operates, and franchises hamburger-oriented drive-through restaurants under the Good Times Burgers & Frozen Custard name in Colorado. Market cap at $79.29M, most recent closing price at $8.39.

Sales growth quarter-over-quarter at 33.90 percent.

 

3. The Habit Restaurants Inc. (HABT, Earnings, Analysts, Financials): Focuses on operating fast casual restaurants under The Habit Burger Grill name in the United States. Market cap at $830.70M, most recent closing price at $31.95.

Sales growth quarter-over-quarter at 57.00 percent.

 

 

4. Chanticleer Holdings, Inc. (HOTR, Earnings, Analysts, Financials): Owns and operates Hooters franchises in the United States and internationally. Market cap at $16.46M, most recent closing price at $2.07.

Sales growth quarter-over-quarter at 500.00 percent.

 

 

5. Zoe's Kitchen Inc. (ZOES, Earnings, Analysts, Financials): Develops and operates fast casual Mediterranean cuisine restaurants in the United States. Market cap at $661.73M, most recent closing price at $34.34.

Sales growth quarter-over-quarter at 49.80 percent.

 

(List compiled by David Floyd. Monthly returns 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.

8 (o): [object Object] Headline (s): The New Jobs Report Shows Janet Yellen's Quandary in a Nutshell Teaser (s): The biggest decision that Janet Yellen has faced in her year-old Federal Reserve chairmanship was laid bare in a single report on the domestic job market released Friday. Source (s): New York Times DocumentDate (s): 4 hours ago DocumentDate_raw (n): 1425670200000 Link (s): http://www.nytimes.com/2015/03/07/upshot/the-new-jobs-report-shows-janet-yellens-dilemma-in-a-nutshell.html DocumentKey (s): HTTPwww.nytimes.com/2015/03/07/upshot/the-new-jobs-report-shows-janet-yellens-dilemma-in-a-nutshell.html DMSourceID (s): Google ContentType (s): Article 9 (o): [object Object] Headline (s): At long last, Dow gets a taste for Apple Teaser (s): NEW YORK, March 6 (Reuters) - Apple Inc, the largest U.S. company by market value, will join the Dow Jones industrial average, replacing AT&T Inc, in a change that reflects the dominant position of the iPhone maker in the U.S. Source (s): Reuters DocumentDate (s): 9 hours ago DocumentDate_raw (n): 1425652880000 Link (s): http://in.reuters.com/article/2015/03/06/apple-dow-idINL1N0W80ZI20150306 DocumentKey (s): HTTPin.reuters.com/article/2015/03/06/apple-dow-idINL1N0W80ZI20150306 DMSourceID (s): Google ContentType (s): Article 10 (o): [object Object] Headline (s): Brisk Jobs Growth Puts Focus on Fed Teaser (s): The strongest stretch of job creation in two decades pushed the U.S. unemployment rate into the Federal Reserve's target zone, keeping the central bank on track to raise interest rates as early as June and jolting investors worried about higher borrowing costs ... Source (s): Wall Street Journal DocumentDate (s): 10 hours ago DocumentDate_raw (n): 1425648959000 Link (s): http://www.wsj.com/articles/jobs-report-u-s-adds-295-500-jobs-unemployment-falls-to-5-5-1425648924 DocumentKey (s): HTTPwww.wsj.com/articles/jobs-report-u-s-adds-295-500-jobs-unemployment-falls-to-5-5-1425648924 DMSourceID (s): Google ContentType (s): Article 11 (o): [object Object] WSODIssue (s): |46089|72887506|255804|266905 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Myanmar is opening up to foreign firms, but is it time to invest? Link (s): http://folionation.squarespace.com/news/2015/3/5/myanmar-is-opening-up-to-foreign-firms-but-is-it-time-to-inv.html Thumbnail (s): DocumentDate_raw (n): 1425587940000 DocumentDate (s): March 5, 2015 DocumentDate_smart (s): Mar 5, 2015 DocumentKey (s): 1107-290734296785735258508-31VO5R01QBCPBOI9DIPMRA1O96 ContentType (s): Article TrackingPixel (s): Teaser (s):

Myanmar, closed to all foreign investment until recently, is blowing up. Here's how you can invest.

Myanmar has only been slightly democratic since 2010, when the miliatry-junta-turned-political-party won the country's first elections in decades. The international community mostly condemned the elections as a farce, but in the years since Myanmar has continued to make incremental steps towards becoming a free-ish, fair-ish country.

Part of this process involves opening up to foreign companies and investors. On February 25, for example, Google (GOOGannounced that Gmail is now available in Burmese, or Myanma bhasa. Google search has been available in Burmese since April 2013.

Internet penetration is still very low, but it has exploded from a mere 202 users in 2002 to around 2.6 million today, or 4.9 percent of the estimated population of 53 million.

This change is largely due to the introduction of mobile phones. In June 2013, the government signed a deal with two carriers, Qatar's Ooredoo and Norway's Telenor (TELNY), in an effort to boost mobile penetration to the 75-80 percent range by 2016. In January 2015, Telenor announced it would aim to issue 1.5 million new SIM cards every month as it expanded its network throughout the country.

Banking has also begun to enter the country. In 2014, the number of bank branches in the country—all of which were at least in part government-owned—lagged behind that of Haiti and Afghanistan and only just beat South Sudan. All payments were in cash, which was transported and counted by hand. 

The government authorized nine foreign banks to operate in the country in October, albeit under stricts regulations. These include Australia and New Zealand Banking Group (ANZBY) and Sumitomo Mitsui Financial Group (SMFG). 

International investment in Myanmar will only continue to rise, assuming the government doesn't backtrack on its reforms. Foreign direct investment between March 2012 and April 2013 nearly quintupled compared to the previous year. Aung Tun Thet, an economic advisor to President Thein Sein, said the country was on track to become another Autstria, an economic gateway between different markets. In Myanmar's case, those markets would be India and China.

But the future isn't all bright for investors, leaders, or citizens in Myanmar. The country is 157th out of 175 according to Transparency International's corruption rankings. The government is embroiled in multiple wars with a shifting list of ethnic separatist armies. Fighting with the Ta'ang National Liberation Army, on one front, and the allied Arakan Army and Kachin Independence Army, intensified on Union Day, February 12, this year. 

Many investors will also be reluctant to support the current regime, even indirectly, with investment dollars. The Rohingya, a tiny Muslim minority in an overwhelmingly Buddhist country, are currently confined to internment camps under terrible conditions. Doctors Without Borders has been prevented from coming to their aid, and the Rohingya have been denied the right to vote.

On the other hand, many consider foreign investment a catalyst for positive change, in that it subjects leaders to more scrutiny from the international community.

 

Click on the interactive chart to view data over time. 

1. Australia and New Zealand Banking Group Limited (ANZBY, Earnings, Analysts, Financials): Provides banking and financial products and services to retail, small business, corporate, and institutional clients primarily in Australia and New Zealand. Market cap at $75.07B, previous close at $27.86.

 

 

2. Google Inc. (GOOG, Earnings, Analysts, Financials): Google is the world's most popular search engine. Market cap at $390.25B, most recent closing price at $573.37.

 

 

3. Sumitomo Mitsui Financial Group Inc. (SMFG, Earnings, Analysts, Financials): Provides various banking and financial products and services in Asia and the Oceania, the Americas, Europe, the Middle East, and Africa. Market cap at $54.91B, most recent closing price at $7.84.

 

 

4. Telenor ASA (TELNY, Earnings, Analysts, Financials): Operates as a telecommunication company. Market cap at $30.19B, previous close at $59.00.

 

 

 

(List compiled by David Floyd. Monthly returns 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): |7069859|1607179|149059|167459|205778|218647 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): What's wrong with HP? Link (s): http://folionation.squarespace.com/news/2015/3/5/whats-wrong-with-hp.html Thumbnail (s): DocumentDate_raw (n): 1425573540000 DocumentDate (s): March 5, 2015 DocumentDate_smart (s): Mar 5, 2015 DocumentKey (s): 1107-290734296785735258101-5OGCDG128I1N7G3MQ93JFTTODP ContentType (s): Article TrackingPixel (s): Teaser (s):

 Can HP recover from a revenue miss in the first quarter, or is it more of the same ahead?

Hewlett-Packard (HPQ) fell over 9 percent last week after it shocked investors with a revenue miss in its quarterly report. HP reported revenue of $26.8 billion for the first quarter, vs an expected $27.2 billion. Its adjusted earnings per share (EPS) was $0.92, higher than the estimated $0.91, but the company’s guidance for the second quarter was a dismal $0.84-$0.88.

Especially in light of the company’s financial outlook, the bullish case for HP is now much less convincing.

The bad news

HP blamed high separation costs for its poor results. The company is in the midst of splitting its PC and printing businesses. In the process, it expects to spend $1.3 billion this fiscal year and another $500 million in fiscal 2016. Although these charges look daunting, they account for less than 2 percent of the company’s annual operating costs.

Enterprise service sales were weak, as revenue fell 11 percent over last year.

Printing revenue declined 5 percent year-over year, or 4 percent in constant currency, which HP blamed on weak demand in Russia.

Software revenue was also down 5 percent, or 3 percent in constant currency, due to difficulties in shifting sales from software to SaaS (software as a service).

The good news

HP expects continued growth in the PC market, even though the business is contracting. Branding, channel, and scale will complement a strong product line-up.

HP’s printing unit boasted a 19.2 percent profit margin, but that was in part due to a weak yen. HP needs to keep innovating, which means more development costs and capital expenditure for printing. Investment now will benefit Multi Jet Fusion, its 3D printing initiative.

Other players

Strong hardware sales suggest Intel (INTC) and Nvidia (NVDA) could have a good year. Both are up this year, by 38.6 percent and 21.0 percent, respectively. Intel will benefit from customers upgrading their PCs’ CPUs. Nvidia’s graphics chip will also experience strong demand from the upgrade cycle. In the last quarter though, Intel’s stock is down around 8 percent. If HP’s optimism for PC sales is any indication, demand for Intel chips should be strong in 2015.

Microsoft (MSFT) is releasing Windows 10. On the server market, demand should be strong. Windows 2003 support is ending, which means enterprise customers will need to upgrade to Intel-based chips and HP servers.

Acquisition

HP announced it is buying Aruba Networks (ARUN) for $2.7 billion. According to the LA Times, the merger will help HP compete with rivals like Cisco Systems (CSCO) and gain new access to Asian markets.

The acquisition is probably less risky than its ill-fated purchase of Autonomy for $11 billion in 2011. Autonomy’s alleged accounting abuses forced HP to write down $8.8 billion from the merger.

Bottom line

HP expects earnings will be $2.03 to $2.23 per share in fiscal 2015, which means, at $34.84, the stock trades at a forward P/E of as high as 17.2. This is somewhat high for a firm that will face some turbulence as it restructures. The complexity of the separation may distract HP. Therefore, investors looking for exposure to the PC refresh cycle might be better off investing elsewhere, like in Intel or Nvidia. 

Written by Chris Lau

 

Click on the interactive chart to view data over time. 

 

1. Aruba Networks Inc. (ARUN, Earnings, Analysts, Financials): Provides distributed enterprise networks that securely connect local and remote users to corporate information technology resources worldwide. Market cap at $2.68B, most recent closing price at $24.40.

 

 

2. Cisco Systems Inc. (CSCO, Earnings, Analysts, Financials): Designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide. Market cap at $149.72B, most recent closing price at $29.33.

 

 

3. Hewlett-Packard Company (HPQ, Earnings, Analysts, Financials): Hewlett-Packard Company offers various products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Market cap at $62.48B, most recent closing price at $34.19.

 

 

4. 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 $161.59B, most recent closing price at $34.12.

 

 

5. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $353.21B, most recent closing price at $43.06.

 

 

6. NVIDIA Corporation (NVDA, Earnings, Analysts, Financials): Provides visual computing, high performance computing, and mobile computing solutions that generate interactive graphics on various devices ranging from tablets and smart phones to notebooks and workstations. Market cap at $12.19B, most recent closing price at $22.43.

 

 

(List compiled by Chris Lau. Monthly returns 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.

13 (o): [object Object] WSODIssue (s): |36699565|25427545|264204 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): InvenSense is on the rebound, but can it keep up momentum? Link (s): http://folionation.squarespace.com/news/2015/3/4/invensense-is-on-the-rebound-but-can-it-keep-up-momentum.html Thumbnail (s): DocumentDate_raw (n): 1425490740000 DocumentDate (s): March 4, 2015 DocumentDate_smart (s): Mar 4, 2015 DocumentKey (s): 1107-290734296785735256765-39RBSJP0QPUBBMVL6CC71E6L31 ContentType (s): Article TrackingPixel (s): Teaser (s):

Motion sensor maker Invensense is on its way back from a fall in January. Is the rebound a blip or a sign of what's to come? 

Unless the company is Synaptics (SYNA) or NXP Semiconductor (NXPI), smaller device supplier firms aren’t performing well on the stock market. InvenSense (INVN), which makes motion sensors for smartphones and tablets, fell after its quarterly earnings, but it is rebounding. Thanks partly to strong first quarter from Apple (AAPL), investors are still bidding shares higher.

Wearables, IoT market is bright

Matt Ramsay, an analyst at Canaccord Genuity, expects profit margin to improve as InvenSense supplies to the Internet of Things (IoT) and wearables market. The company relies heavily on Samsung (SSNLF) and Apple as its customer. This would explain why its non-GAAP profit margin was just 45.7 percent in the last quarter.

Looking ahead, as smart watches and IoT-related solutions are released, InvenSense will have the opportunity to sell components at a higher price. The company’s single-chip solution is attractive for IoT: the chip saves space, costs less for OEMs to implement,and allows for full connectivity and memory powering. InvenSense showcased its microelectromechanical (MEM) sensor “Sensing everything” at CES this year.

The future, less so

In its January 29 conference call, InvenSense estimated total fourth-quarter 2015 revenue would fall between $95M and $98M. Non-GAAP gross margin will be between 46 and 47 percent, and non-GAAP earnings will be between $0.11 and $0.13 per share.

Looking beyond the current quarter, if InvenSense shifts its revenue to markets outside of mobile, the stock may rebound.

Risks

Limited profitability in the smartphone and tablet space will weigh on InvenSense. If the company's gross margins fail to improve, the stock will have limited upside.

Bottom line

Even though InvenSense is up 10 percent in the last week, the stock price is stabilizing. If profitability improves, the stock will rally back to the $20 range, up sharply from its recent $16.67 closing price.

Written by Chris Lau

Click on the interactive chart to view data over time. 

1. InvenSense Inc. (INVN, Earnings, Analysts, Financials): Designs, develops, markets, and sells micro-electro-mechanical system (MEMS) gyroscopes for motion tracking devices in consumer electronics. Market cap at $1.50B, most recent closing price at $16.87.

 

 

2. NXP Semiconductors NV (NXPI, Earnings, Analysts, Financials): Provides mixed signal solutions and semiconductor components primarily in Japan, Europe, South Korea, Rest of Asia Pacific, and the Americas. Market cap at $24.65B, most recent closing price at $98.73.

 

 

3. Synaptics Inc. (SYNA, Earnings, Analysts, Financials): Develops and supplies custom-designed human interface solutions that enable people to interact with various mobile computing, communications, entertainment, and other electronic devices. Market cap at $2.99B, most recent closing price at $80.71.

 

 

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

14 (o): [object Object] WSODIssue (s): |90864|66115342|284935 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): 3 stocks to watch when the Misery Index drops Link (s): http://folionation.squarespace.com/news/2015/3/3/3-stocks-to-watch-when-the-misery-index-drops.html Thumbnail (s): DocumentDate_raw (n): 1425416160000 DocumentDate (s): March 3, 2015 DocumentDate_smart (s): Mar 3, 2015 DocumentKey (s): 1107-290734296785735255459-5P0TI51SQT6CT5B1PC70S8AEI2 ContentType (s): Article TrackingPixel (s): Teaser (s):

Whether you knew it or not, you're less miserable than you've been at any time since 1959. Thanks, Misery Index.

Well, it's official. Americans are the least miserable they've been since the 1950s, according to Arthur Okun's misery index. The Wall Street Journal reported on Monday that the Misery Index, the sum of US inflation and the unemployment rate, hit its lowest level since 1959. Does that mean that we're back to the days of consumer paradise, when cars were 15 feet long and our only fear was nuclear obliteration?

Perhaps, perhaps not. But we can make some educated guesses about politics and the economy based on the Misery Index's historical data.

First, there's an inverse correlation between the index and incumbent presidents' odds of winning second terms, but that's irrelevant at the moment.

Second, there's a strong inverse correlation between the index and the forward P/E ratio—a valuation metric that incorporates expected growth—of the the S&P 500. So if misery goes up, forward P/E goes down. And when misery goes down, forward P/E goes up.

This probably isn't much of a revelation, but it inspired us to look for stocks that might derive particular benefit from a return to mid-century boom times. Since conventional wisdom has it that consumers devote more of their money to retail spending during good periods in the cycle, we began with the holdings of the SPDR S&P Retail ETF (XRT). To identify companies that could take the most advantage of increased consumer spending, we screened for stocks with higher gross, pretax and operating margins in the trailing twelve months (TTM) than the industry average. That ought to make anyone happy.

Click on the interactive chart to view data over time. 

1. Dollar Tree Inc. (DLTR, Earnings, Analysts, Financials): Operates discount variety stores in the United States and Canada. Market cap at $16.44B, most recent closing price at $79.92.

TTM gross margin at 37.66% vs. industry average at 34.38%. TTM operating margin at 12.42% vs. industry average at 7.84%. TTM pretax margin at 11.09% vs. industry average at 6.64%.

 

2. Sprouts Farmers Market Inc. (SFM, Earnings, Analysts, Financials): Operates as a specialty retailer of fresh, natural, and organic food in the United States. Market cap at $5.44B, most recent closing price at $35.85.

TTM gross margin at 31.89% vs. industry average at 24.06%. TTM operating margin at 6.85% vs. industry average at 5.04%. TTM pretax margin at 5.87% vs. industry average at 4.47%.

 

3. Whole Foods Market Inc. (WFM, Earnings, Analysts, Financials): Engages in the ownership and operation of natural and organic food supermarkets. Market cap at $20.26B, most recent closing price at $56.22.

TTM gross margin at 38.12% vs. industry average at 24.06%. TTM operating margin at 6.5% vs. industry average at 5.04%. TTM pretax margin at 6.57% vs. industry average at 4.48%.

 

(List compiled by David Floyd. Monthly returns data sourced from Zacks Investment Research. Profitability data sourced from Fidelity. 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): |36276|109353|40431866|204192|268527 DMSourceID (s): KAPITALL Source (s): Kapitall Headline (s): Apple Watch could crush watchmakers Link (s): http://folionation.squarespace.com/news/2015/3/3/apple-watch-could-crush-watchmakers.html Thumbnail (s): DocumentDate_raw (n): 1425413580000 DocumentDate (s): March 3, 2015 DocumentDate_smart (s): Mar 3, 2015 DocumentKey (s): 1107-290734296785735255392-69UQJFRME4DU05KTS2RCB1BMJ7 ContentType (s): Article TrackingPixel (s): Teaser (s):

The Apple Watch release is looming over traditional watchmakers. Will they be able to adapt?

Apple (AAPL) has slated its Watch event for March 9, and the unveiling could initiate strong demand for wearable technology. Apple sold a staggering number of iPhones in the previous quarter—74.5 million, to be exact. The stock, not surprisingly, has soared. 

Yet if we believe IDC, a significant slowdown in market growth for smartphones could be ahead: year-on year increases in sales could drop to 6.2 percent by 2018, compared to a roaring 39 percent in 2013. If this proves to be the case, the Apple Watch could be a crucial step to transition into new markets.

Watchmakers in trouble

Demand for Apple Watch could grow rapidly if the firm manages to create a light, thin device with decent battery life. CEO Tim Cook appears confident that the battery could last an entire day, which might spell trouble for traditional watchmakers.

Firms such as Movado Group (MOV), Fossil (FOSL), Tiffany & Co (TIF) and Michael Kors (KORS) could all be on the ropes in the years ahead.

These stocks are already down by as much as 33 percent in the last year, in the case of Movado. The decline might be due to investors’ fears of competition from wearable technology. Swatch (UHRNz), for one, has embraced the trend and is updating its Swatch Touch. The new Swatch Touch Zero One is specifically marketed to volleyball players and can track hits, high hits, power hits and high fives.

Swiss watchmakers, who have been pressed by the Swiss franc’s rising value, are already raising prices for luxury watches. Their bet, write Pierre Taillefer and Nina Larson for AFP, is that consumers will be willing to pay more for “true luxury and perfection.”

Bottom line

If met with solid demand, the Apple Watch release could be a defining moment for Apple, already the world's largest company by market capitalization, and bad news for watchmakers.

Written by Chris Lau.

Click on the interactive chart to view data over time. 

1. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $751.92B, most recent closing price at $129.09.

 

2. Fossil Group Inc. (FOSL, Earnings, Analysts, Financials): Designs, develops, markets, and distributes fashion accessories worldwide. Market cap at $4.36B, most recent closing price at $86.62.

 

 

3. Michael Kors Holdings Limited (KORS, Earnings, Analysts, Financials): Engages in the design, marketing, distribution, and retailing of branded women's apparel and accessories, and men's apparel. Market cap at $13.64B, most recent closing price at $67.95.

 

 

4. Movado Group Inc. (MOV, Earnings, Analysts, Financials): Designs, sources, markets, and distributes fine watches and jewelry. Market cap at $649.90M, most recent closing price at $25.81.

 

 

 

5. Tiffany & Co. (TIF, Earnings, Analysts, Financials): Engages in the design, manufacture, and retail of fine jewelry worldwide. Market cap at $11.72B, most recent closing price at $90.60.

 

 

(List compiled by Chris Lau. Monthly returns 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.

 

 

 

 

*/ undefined

Article Not Found.

Articles