Thursday, May 28, 2015

Top 10 Dow Dividend Stocks for June

Top 10 Dow Dividend Stocks for June
Pay attention, income investors, because dividend stocks just might be the best game in town.
Money185 Top 10 Dow Dividend Stocks for JuneStrong, reliable dividend stocks have room in just about everybody’s portfolio as far as I’m concerned. Especially today, with 10-year Treasuries yielding a measly 2.1% — less than the average rate of inflation[1].
Although Federal Reserve Chairwoman Janet Yellen recently indicated[2] an interest rate hike was coming “sometime this year,” it could be as late as September or October, and it probably won’t be large.
Thankfully, investors have a magical tool known as the stock market at their disposal.


Not only do solid dividend stocks give investors an income stream, but the underlying stock can also appreciate considerably over time. So who needs Treasuries?
Each of these top 10 Dow dividend stocks for June yields at least 3% annually … and in some cases, quite a bit more than that.  (more)

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The Best Stocks to Invest in Alcohol: BUD, BF.A, BF.B

How could you possibly go wrong investing in booze? Talk about a product with a following!
A lot of investors don't want to touch so-called "sin stocks," like those of companies that make alcoholic beverages. To be clear, that's OK: If you've got strong feelings about the beer, wine, and spirits businesses, there are equally great investments to be found elsewhere.
But if the business of beneficially fermented or distilled beverages doesn't push your bad-ethics button -- or if, like this humble Fool, you might enjoy a well-made cocktail now and then -- and you like companies with big moats, strong brands, great cash flows, and dividends, then I encourage you to read on. (more)

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IG Interview: More downside to come before oil heads back to $60



Looking at the key factors moving the oil price, including Iran, shale and OPEC, and explaining why I think Brent will go back down to the mid $50s and then back to $60 next year.
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Canadian Mine Analysis Podcast with David Morgan



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Advisor Perspectives S&P 500 Snapshot: A Recovery From Most of Yesterday's Selloff

Click to view

May 27th, 2015

On a day of light economic news, the S&P 500 managed to recover most of its -1.03% post-Memorial Day selloff. The index surged at the opening bell, vacillated at the 30 minute mark and then rose at a slower but steady pace to the final hour. At its 1.05% intraday high eight minutes before the final bell, the index was fractionally above Friday's close. But some last minute selling trimmed the closing gain to 0.92%, the best performance in eight sessions and only 0.12% below Friday's close.
More…
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Illinois Tool Works Inc. (NYSE: ITW)

Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Test & Measurement and Electronics; Food Equipment; Polymers & Fluids; Welding; Construction Products; and Specialty Products. The Automotive OEM segment produces components and fasteners for automotive-related applications. The Test & Measurement and Electronics segment provides equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. The Food Equipment segment offers commercial food equipment and related services. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, janitorial and hygiene products, and fluids and polymers for auto aftermarket maintenance and appearance. The Welding segment produces arc welding equipment, consumables, and accessories for various industrial and commercial applications. The Construction Products segment produces construction fastening systems and truss products. The Specialty Products segment provides beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. The company distributes its products directly to industrial manufacturers, as well as through independent distributors.
Take a look at the 1-year chart of Illinois (NYSE: ITW) below with the added notations:
1-year chart of Illinois (NYSE: ITW)
ITW rallied in October and November, traded sideways for two months, and then rallied to new highs again. In addition, over the lat 6 months the $96 price level (blue) has become very important to the stock. Not only was $96 a key resistance in December, as well as support in March and April, but that level has also been a recent resistance in the beginning of May.

The Tale of the Tape: ITW has a key level at $96. A trader could enter a long position on a pullback down to $96 with a stop placed under the level. However, if the stock were to break back below $96, a short trade could be made instead.
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Wednesday, May 27, 2015

Is The Silver Trade Getting Crowded? Trader Dan

That is the question I am asking myself today after having some time to analyze its Commitments of Traders report.
Here is the Daily Silver chart:
Chart20150522153001
It has had a nice run higher off the April low near 15.50 after it managed to clear the $16.75 region with conviction last week.  (more)

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Stocks to Watch: KORS, VIPS, GALE

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Michael Kors Holdings Ltd (NYSE:KORS) I'm seeing on daily technical chart a potential falling wedge pattern with a positive divergence on MACD, and they often break to the upside. A close above 62 should be enough to trigger a rally towards the 65 level. Keep the stock on your radar.



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Vipshop Holdings Ltd (NYSE:VIPS) Rallied hard Tuesday on solid volume. If it clears back over 27.02 (50-day EMA), may have some good upside.




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Galena Biopharma Inc (NASDAQ:GALE) Nice move today on decent volume. Traders should watch for a potential breakout over 1.47
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The Top 5 Stocks Held By Congress: GE, MSFT, PG, WFC, AAPL

I’ll be honest — the most popular stocks held by Congress aren’t some super-secret investments…

And they aren’t exclusive investments owned only by those in Congress with some inside knowledge of a future breakthrough.

Instead, they’re large multi-national corporations that make up the bulk of many average investors’ portfolios.  (more)

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Trade of the Day: VLO Valero Stock Looks Like a Steal

Valero Energy Corporation (NYSE:VLO) — This is the world’s largest independent refiner and marketer of petroleum, and it recently spun off its retail business.

In the first quarter, the company reported EPS of $1.87, beating the consensus estimate by $0.20. Average refinery throughput volume increased by 9,000 barrels per day year over year to 2.7 million. VLO’s refineries averaged 92% utilization in Q1, and profit margins widened by $1.49 per barrel.  (more)

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Black Gold, Low-Cost Oil Opportunity

Capitalizing in the oil sector when the price of crude oil is low is a very challenging endeavor. The recent drop in crude oil from $108 per barrel down to nearly $42pb has pulled the share price of most oil related companies sharply lower, thus providing exceptional investment value in some cases.
While the price of crude oil has recovered nearly 50% from March 2015 low with a current oil price around $60pb, crude oil continues to be well below the $95 per barrel 3-year average.
Junior oil shares have seen a wave of panic selling that has many junior shares trading at bargain prices. While this may sound great for long-term investors, selecting the correct companies is no easy task. Let me explain: (more)

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Tuesday, May 26, 2015

Gold Miners Fail at 200-day Moving Average

Last week we wrote that the precious metals complex had not broken out yet and had more work to do before it could attempt a true breakout. The metals had some more upside and so did the shares. However, the poor performance of the shares this past week could warn of a larger reversal.
We thought the gold miners could rally up to resistance at the 400-day moving average. Instead of pushing a bit higher, their rally reversed course at the 200-day moving average. Note the action since last summer. The miners had a strong rally up to the 400-dma and later recovered to both moving averages when they were quite close in January. This recent rally did not reach the 400-dma and that signals weakness.


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Stocks to Watch: EYES, RMBS, BITA, AAPL, CHK, HIMX

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Second Sight Medical Products Inc (NASDAQ:EYES) The stock closed on Friday above its major EMAs with high volumes gaining 10% over its previous close indicating accumulation of the stock at current levels. The stock appears positive on daily charts and may move up to 15 once it breaks above previous pivot high. The technical indicator ADX is showing a sign of strength, with the +DI line above the -DI line. Further, the RSI is turning up from its support level, while the MACD is showing signs of bottoming. I will watch the stock price next week and add more above Friday’s high.

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Rambus Inc. (NASDAQ:RMBS) has an interesting daily technical chart and could have another bigger move soon. The break of the next key horizontal resistance line with heavy volume should be the next buy point. If price clears resistance at $14.58, the next move may be powerful. The outlook for stock remains positive supported by the major EMAs and momentum indicators. Strong support for the stock exists at 14.08.

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Shares of Bitauto Hldg Ltd (NYSE:BITA) have room for a significant uptick beyond these levels. Volume starts to pick up again. A move above $65.77 could trigger a sharp move higher. Long set-up on watch.

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Apple Inc. (NASDAQ:AAPL) may be setting up to make new highs next week. Next buy area is when the stock clears 133.98 on heavy volume. From a technical standpoint momentum indicators are in bullish zones. The daily MACD is moving above its signal line in positive territory, while RSI is moving up above its 50% level. All major EMAs are rising and the stock is trading above them. For now the bulls remain in control.

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Chesapeake Energy Corporation (NYSE:CHK) should be at the top of your radar screen next week. The 50-day EMA has been proved to be a strong resistance. More times the resistance has been tested, there is good chance for breaking above that point. Technically speaking, I feel that there is a possibility for CHK to go beyond $15.41 next week. Carl Icahn has steadily increased his stake in this name.


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Himax Technologies, Inc. (NASDAQ:HIMX) is finally stepping up after weeks of frustration. The price is building momentum and broke yesterday the downtrend line that it established since January on high volumes with 7.05 as the first upside objective.
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Aecom (NYSE: ACM)

AECOM provides professional technical and management support services for public and private clients worldwide. The company operates through two segments, Professional Technical Services (PTS) and Management Support Services (MSS). It offers planning, consulting, architectural and engineering design, and program and construction management services for a range of projects, including highways, airports, bridges, mass transit systems, government and commercial buildings, water and wastewater facilities, and power transmission and distribution. The company also provides program and facilities management and maintenance, training, logistics, consulting, technical assistance, and systems integration services primarily for agencies of the U.S. government. It serves transportation, facilities, environmental, energy, water, and government markets.
Take a look at the 1-year chart of Aecom (NYSE: ACM) below with my added notations:
1-year chart of Aecom (NYSE: ACM)
Over the last 8 months ACM has formed an inverse head and shoulders reversal pattern (green). I have noted the head (H) and the shoulders (s) to make the pattern more visible. The stock’s neckline resistance is at the $34 level (Red). ACM will confirm its H&S by breaking through the neckline.
Keep in mind that simple is usually better. Had the inverse H&S pattern never been pointed out, one would still think ACM was moving higher simply if it broke through the $34 resistance level.

The Tale of the Tape: ACM has formed an inverse head & shoulders pattern. A long trade could be entered on a break through the $34 level.
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Chart of the Day - Corium International (CORI)

The Chart of the Day belongs to Corium International (CORI).  I found the stock by sorting today's All Time High list for the stocks with the highest technical buy signals, then used the Flipchart feature to review the charts.  Since the Trend Spotter signaled a buy on 4/29 the stock gained 42.7%.

Corium International, Inc. is a commercial-stage biopharmaceutical company. It is focused on the development, manufacture and commercialization of specialty pharmaceutical products that leverage advanced technologies in transdermal and transmucosal delivery systems. Corium has developed six marketed products in the prescription drug and consumer markets: Clonidine Transdermal Delivery System for hypertension, Fentanyl TDS for chronic pain and four Crest Advanced Seal Whitestrips products. The company has two proprietary transdermal technology platforms with applications in multiple drug categories and indications: Corplex(TM) and MicroCor(R). Corium International, Inc. is headquartered in Menlo Park, California.

technical indicators:
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 15 new highs and up 48.67% in the last month
  • Relative Strength Index 78.72%
  • Barchart computes a technical support level at 11.04
  • Recently traded at 12.89 with a 50 day moving average of 8.52
Fundamental factors:
  • Market Cap $232.92 million
  • Revenue expected to grow 1.70% this year and another 26.60% next year
  • Earnings estimated to increase 14.50% this year and an additional 30.60% next year
  • Wall Street analysts issued 3 strong buy recommendations on the stock
The most reliable technical trading strategy for this stock has been the price vs the 100 day moving average.
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Trade of the Day: GPRO Stock Mounting an Uptrend

GoPro Inc (NASDAQ:GPRO) — Shares of this maker of wearable and mountable cameras have risen more than 44% off their year-to-date lows from early March, yet my social media indicator doesn’t flash a whole lot of exuberance about the stock. But it looks like the sharp decline from the October highs to the March lows has shaken out the last of the weak hands.
When GoPro announced quarterly earnings on April 28, it blew away estimates, reporting a 54% year-over-year jump in sales and a 149% increase in earnings. Gross profit margin rose to 45.1% from 40.9% in the year-ago quarter. This was unsurprisingly followed by a slew of bullish analyst notes.
Looking at the chart of GPRO stock, after the strong rally from last summer/autumn, gravity set in by October, and shares were off 62% when all was said and done in March. With the bulls flushed out, the stock began to signal downside exhaustion and consolidate with an upward bias.
Following the April 28 earnings report, GPRO stock rallied nearly 13% the next day, leaving behind a notable up gap that also pushed the stock back above its 100-day simple moving average (blue line).
Over the ensuing five trading days, shares quickly fell back down and fully filled the April 29 up gap. In a show of strength, however, GPRO stock again began to rise, all the while holding marginally above the 100-day moving average. Filling the gap also served as a retest of a previous mini-resistance area near $47.
Earlier this week, GPRO stock managed to marginally push back above the post-earnings rally high, which also brought shares up to the next horizontal resistance line around the $54.50 area. It looks like the strong earnings report has changed the direction back up. Active investors should look to buy GPRO stock on a move above $54.50 for an initial target in the $60 area in the coming month.
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Saturday, May 23, 2015

Gold Investors: 5 Top Mining Stocks Under $5: AUY, KGC, NG, SAND, BTO, K, NG, SSL, YRI

Over the next couple of years, you could make triple-digit gains in one of the world’s most beaten-down commodities: gold.
No, it won’t happen overnight. But behind the scenes, some of the world’s smartest money managers have been quietly building positions in precious metals. And as I’m about to show you, a bull market in gold and silver is almost inevitable.
Let me explain…
Is gold about to hit $1,750 per ounce?  (more)

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Shake Shack Inc (NYSE:SHAK) : The Most WILDLY Overvalued Stock on Wall Street

Years from now, when we look back on The Great Shake Shack Inc (NYSE:SHAK) Plunge of 2015, some of us will ask ourselves: “Why? Why did I buy that rotten thing?”
I’m writing this article so you can avoid that fate. SHAK stock is the closest thing to literal garbage on Wall Street. But then again, garbage can’t really lose you money, so … I guess Shake Shack stock is actually worse than garbage.

SHAK stock roared to all-time highs on Thursday, adding as much as 10% after Shake Shack’s parent company filed a trademark application for the term “Chicken Shack.”

Seriously.  (more)

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Take Profits on Natural Gas

The price of natural gas has spiked 15% higher over the past month.
 
Ultimately, natural gas prices are likely to trend even higher over the next few months. But in the short term, the commodity is due for a breather.
 
So if you took our advice and bought natural gas in April, it's time to take your gains off the table and wait for another pullback to get back into the trade...
 
Take a look at this updated chart of natural gas...
 
 
Last month, I suggested an inverse head-and-shoulders pattern was developing on the chart. This is a bullish pattern that signals the end of a downtrend and the beginning of an uptrend. The left shoulder and the head of the pattern were already in place. All that was left to complete the pattern was a rally back up to the neckline followed by a drop back down to a higher low – which would form the right shoulder.  (more)
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The Treasury Bond Bull Market Will Persist

How many times have you heard the phrase “bond bubble” in the past three years?
It seems that every time you turn on financial television or go to a financial website, there’s an analyst warning you about a bond bubble about to burst. The commentary usually consists of the observation that “interest rates are near an all-time low” and “have nowhere to go but up.”
There’s not much more to the analysis than that. In fact, interest rates are near all-time highs and could drop significantly, setting off one of the greatest bond market rallies in history.  (more)

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Why Shake Shack SHAK Is a Bad Investment

Millions of investors and everyday Americans have discovered Shake Shack’s high-end hamburgers. They taste great, and the new chain is a snazzy place to hang out.
Logically, they assume that the novel experience will translate into a great investment. Indeed, SHAK gained 8.47% in yesterday’s trading session to close near $90 (an all-time high), thanks in part to headlines from this week like these:
Is Shake Shack The New Chipotle? – Yahoo! Finance
Shake Shack Is Considering a Chik-Fil-A Killer – Business Insider
Shake Shack Continues to Defy Gravity, Surges to Fresh All-Time Highs – Briefing.com
(more)

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Friday, May 22, 2015

Chart of the Day Waters Corp (WAT)

The Chart of the Day belongs to Waters Corp (WAT).   I found the stock by sorting today's All Time High list for the stocks with the highest technical buy signals then used the Flipchart feature to review the charts.  Since the Trend Spotter signaled a buy on 4/28 the stock gained 7.30%.

Waters Corporation is a holding company which owns only and all of the outstanding common stock of Waters Technologies Corporation, the operating subsidiary. It operates in the analytical instrument industry, with manufacturing and distribution expertise in three complementary technologies: high performance liquid chromatography instruments, chromatography columns and other consumables, and related service; mass spectrometry instruments that can be integrated and used along with other analytical instruments; and thermal analysis and rheology instruments.


technical indicators:

  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 8 new highs and up 8.66% in the last month
  • Relative Strength Index 77.38%
  • Barchart computes a technical support level at 131.53
  • Recently traded at 134.76 with a 50 day moving average of 125.64
Fundamental factors:
  • Market Cap $11.14 billion
  • P/E 22.67
  • Revenue expected to grow .70% this year and another 5.90% next year
  • Earnings estimated to increase 5.50% this year, an additional 9.50% next year and continue to increase at an annual rate of 9.13% for the next 5 years
  • Wall Street analysts issued 1 strong buy, 2 buy, 16 hold and 1 under perform recommendations on the stock
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Cornerstone OnDemand, Inc. (NASDAQ: CSOD)

Cornerstone OnDemand, Inc. provides cloud-based talent management solutions delivered as software-as-a-service. It provides recruiting, onboarding, learning, performance, succession, compensation, extended enterprise, and salesforce products offerings. The company offers Enterprise and Mid-Market solution that is a cloud-based suite that addresses hiring, developing, engaging employees throughout their careers, and cultivating future leaders. The Enterprise and Mid-Market solution also helps enhancing business execution through integrating with an organization’s extended enterprise of clients, vendors, and distributors by delivering training, certification programs, and other content. It also provides Cornerstone Growth Edition, a cloud-based talent management solution with learning and performance product offerings targeted to organizations with approximately 400 employees, as well as cross-product tools for analytics and reporting, employee profile management, and e-learning content aggregation.
Take a look at the 1-year chart of Cornerstone (NASDAQ: CSOD) below with my added notations:
1-year chart of Cornerstone (NASDAQ: CSOD)
CSOD has been trending lower for most of the past year. Over that time, the stock has formed an important trend line of resistance (red). Always remember, any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its importance. CSOD obviously has an important trendline of resistance, which currently sits right around $32.

The Tale of the Tape: CSOD is currently stuck under a down trending resistance. A break above that resistance should mean higher prices, thus a long trade could be made. Short traders might look to enter a trade at the resistance.
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Trade of the Day: MBIA Inc. (NYSE:MBI) Under $10 Stock Ready for a Big Move

MBIA Inc. (NYSE:MBI) — Shares of this diversified financial services company have already rallied more than 12% so far this month, in part spurred by the company’s latest earnings report. From a technical point of view, MBI stock looks to have built a bigger picture bottom that could lead to a move higher over the next 6-12 months.
On May 11, the company reported a drop in quarterly earnings from a year ago, primarily as a result of fewer gains on insured derivatives. However, they were still well ahead of expectations and investors bid up shares, which also got a boost in momentum from the broader leadership by the financial sector.  (more)

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The Real Reason For the Oil Crash… And Why It Could Happen In Other Asset Classes

It looks like Oil’s bounce is over.
Traders have been playing for a rise in Oil based on two things:
1)   Oil being sharply oversold due to its 60% collapse in the span of six months.
2)   We’re heading into “drive season” (the summer) in which gas demand increases.
This has seen Oil surge 45% since its March 2015 bottom.
However, the larger story for Oil, like all things, concerns the US Dollar. Below is a chart showing Oil against an inverted chart of the US Dollar chart (so if the US Dollar strengthens, the blue line falls).
You can note the close correlation between the two:

It is not coincidence that Oil bottomed the very same day that the Us Dollar peaked and began to correct. Oil exploration is an extremely capital intensive business: drilling a new Oil well costs at a minimum ~$4 million… and can easily run up into the $100+ million range.  (more)

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Thursday, May 21, 2015

Which Investing Strategy Is Better: Value or Momentum?

It's hard for me to find true friends among my investment buddies...
 
You see, I believe that both "value" and "momentum" work in investing – and you're not allowed to do that. You have to pick teams...
 
In the investing world, saying you believe in value AND the trend is like saying you are part of more than one political party... You simply can't do that!  (more)

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Stocks To Watch: HIMX, MELA, MEIP, PRAN

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Himax Technologies, Inc. (NASDAQ:HIMX) gained 4% to 83 cents per share after analysts at Rosenblatt Securities upgraded their rating to BUY with a PT of $9. From a technical standpoint the stock is trying to break the downtrend line visible on the chart above (yellow mark). If it breaks this key resistance level, bulls may expect it to run toward $7. With MACD rising and %K line on top of %D line, the major rally of the stock may be finally coming. Im long.

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MELA Sciences Inc (NASDAQ:MELA) The stock closed the day at $1.62 on decent volume and looks poised to post more gains heading into the weekend. I expect this stock to trade above $2 in the near term after today's strong close above the 20-day EMA. Keep it on your watch list.

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MEI Pharma Inc (NASDAQ:MEIP) The daily technical chart shows a stock that is right on the cusp of a breakout. If price can break through its 20-day exp moving average, then I think 2.44 level could be well within reach. Nice slow steady accumulation in last days, MFI rising. Keep it on your watch list.



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Prana Biotechnology Limited (NASDAQ:PRAN) hit my scanner today with some impressive volume and closed up 14%. I expect some follow through on Thursday.

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Xilinx (NASDAQ: XLNX) Breakout 'Buy' Signal

I am a big fan of looking at charts one degree of time further out than I plan to trade. It is the market-ification of the old saw about seeing the forest for the trees.

For instance, the short-term chart of programmable circuit and semiconductor maker Xilinx (NASDAQ: XLNX) is a mess. But when we pull back to the weekly chart we can clearly see a breakout with supporting technicals.  (more)

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Is There a Bubble in Canadian Farmland? : AGU, POT, RME

Since 2010 it’s been good to be a farmer in Canada.
The weather has largely cooperated, which has led to some terrific years. Crop yields were up each year from 2010-13, with 2013 yields being the highest ever. Last year’s harvest was down, but was still historically decent.
Commodity prices have also been strong. The price of wheat has done well, spiking up to $9 per bushel in 2012. Currently it trades at US$5.25 per bushel, which is 50% more than a decade ago. Canola has also done well, and the price for beef is flirting with a 10-year high. (more)

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Sell Keurig Green Mountain (NASDAQ: GMCR)

Keurig Green Mountain Score: 29

Last and certainly least, is Keurig Green Mountain (NASDAQ: GMCR) with a score of 29.

The company also recently reported worse-than-expected sales and earnings, and management lowered expectations for the remainder of 2015 on weak sales of its new coffee brewer.

Consumers seemed displeased with the high price tag and the fact that the Keurig 2.0 was designed it to be incompatible with refillable K-Cups and third-party brew pods. The company saw the error of its ways and announced this month that it would rectify the situation, but it may be too little too late.

On the chart, GMCR sports a large head-and-shoulders top with a downside price projection of below $80.


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