Tuesday, September 3, 2013

5 Growth Stocks Poised to Profit in the Fourth Quarter: NFLX, CMG, HLF, EOG, SPLK

Sometimes the best things are hiding in plain sight, as the old saying goes. Keeping that in mind, Joe Fahmy of Zor Capital joins Breakout to discuss his top five stock picks poised to deliver results in the fourth quarter.

To be clear, Fahmy characterizes these stocks as aggressive and suitable for active investors. He also stresses that market momentum is a common theme that applies to the entire quintet, which is clear from the very first name. "I traffic in growth stocks," he says, "but if I'm wrong, it's not a big deal because I stop myself out."

Here are Fahmy's picks:

Netflix (NFLX)
Conspicuously hiding atop the S&P 500's year-to-date winner's list (with a 212% gain so far this year), Netflix makes the cut due to its strong institutional support, great technicals and very good relative strength as it has continued to rise even as the market has softened up this month. (more)

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The Key to 3D Systems' Future Earnings: DDD

When a company is growing as quickly as 3D Systems (NYSE: DDD  ) , in an industry with tremendous promise, it can be difficult to gauge the importance of earnings. Do you ignore profit while the company builds sales? And if the quality of those earnings is difficult to assess because of recent acquisitions, should you just focus on the company's valuation versus its peers?

The short answer is that earnings always count, and even in situations where the herd is snapping up shares largely for future potential, understanding a corporation's current profit or loss can arm you with the confidence to either to jump in or pass on the opportunity. Moreover, it can illuminate which aspects of earnings will be important in the future.

A considerable GAAP
Like many other companies, 3D Systems includes non-GAAP earnings and metrics in its earnings releases and SEC filings. GAAP is an acronym for "generally accepted accounting principles," and publicly traded companies are required to file their financial statements under these guidelines, which seek to ensure that the economic reality of a company is reflected across its financial statements. Corporations are allowed to provide alternative numbers alongside GAAP earnings. According to its most recent SEC filing, 3D Systems asserts that it uses non-GAAP earnings to help investors better understand the impact that numerous acquisitions have had on the company's results.  (more)

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How to Prepare for the Next Stock Market Crash

Market crashes are an interesting area to study. Many economists and finance professors devote countless hours trying to discover the precise causes of crashes.

In 2008, it was the housing crisis. In 2000, it was Internet stocks. In 1987, it was portfolio insurance. In 1929, it was highly leveraged stock speculation, or maybe it was a contractionary monetary policy. Really all that can be known for certain when it comes to market crashes is that hindsight is 20/20.
And in each case, while there were warning signs of these problems, the size of the losses caught most investors by surprise.

In the most recent crash, for example, the problems in housing existed long before the markets went into a tailspin. And the underlying problem existed for an extended period of time before every other crash as well. Yet, moving to cash at the first hint of a problem can be costly to investors because it means they will miss out on bull market gains. (more)

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Comex Registered Inventories – Could Disappear Any Day!

by Andrew Hoffman

First, let me caveat with what I always state when analyzing COMEX inventories – or, for that matter, any information emanating from government and/or “quasi-government” agencies (in this case, the CME, which I consider the latter). That is, don’t believe everything you read, as it may be “fudged” to serve those seeking to harm you. After all, it was just three months ago when the COMEX quietly added the below disclaimer to the bottom of its weekly inventory reports…
The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only.
-The Golden Truth, June 4, 2013
Continue Reading at MilesFranklin.com…
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Axiall Corp (NYSE: AXLL)

Axiall Corporation operates as an integrated chemicals and building products company in North America and Asia. The company manufactures chlor-alkali and derivatives, chlorovinyls, and aromatics products, including chlorine, caustic soda, ethylene dichloride, vinyl chloride monomer, polyvinyl chloride, vinyl resins, vinyl compounds, compound additives and plasticizers, chlorinated solvents, calcium hypochlorite, muriatic acid, phosgene derivatives, acetone, cumene, phenol, and alpha-methylstyrene. These products are used in various applications, including plastics, pulp and paper production, packaging, chemical intermediates, pharmaceuticals, medical and agricultural applications and paints, acrylics, and varnishes. It also produces vinyl-based building and home improvement products, such as window and door profiles, siding products, pipe and pipe fittings, moldings, and trim and decking products, which are marketed under the Royal Building Products, Celect, Zuri, Korflo, Overture, S4S, and Exterior Portfolio brand names for the electrical, municipal, irrigation, plumbing, and residential and industrial applications.

Please take a look at the 1-year chart of AXLL (Ocwen Financial Corporation) below with my added notations:
1-year chart of AXLL (Ocwen Financial Corporation) AXLL has been on quite a ride this past year. After bouncing on $35 for a couple of months (red) back in 2012, AXLL rallied all the way up to $65 in March. Then, right back down again. Over this period of time, the stock has created an important price level of $40 (navy) that has acted as both support and resistance whenever the stock has come in contact with it.

The Tale of the Tape: AXLL is approaching $40 again. A long trade could be made on a pullback down to $40 with a stop placed below that level. A break of $40 should mean a fall back down to $35 where another long trade could be made.
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3 Best Energy Stocks to Play the ‘Eagle Ford’: EOG, APC, PXD

To pick the best natural gas stocks to play the natgas price rise, you need to look not just at company fundamentals, but one crucial factor: Where these companies’ assets lie…

That’s because companies with assets in Texas are booming, and will deliver some of the best gains ever seen by energy investors.

Texas is the historical center of the U.S. energy industry. Today it’s a major producer of natural gas.

Joel D. Moxley, president of the Gas Processors Association, told the Houston Business Journal, “Booming is the only way to describe the natural gas industry in Texas. (more)

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Facebook at $40: Wasn't This an Overvalued IPO Dud?

Remember all that hype about Facebook (NASDAQ: FB  ) stock when the social network went public at $38? The valuation was astronomical, critics complained. As the shares continued to fall as low as $17.55 in the coming months, the bears were emboldened. It became commonplace to liken the Facebook euphoria to the dot-com bubble.

But today it's a different story. The stock is back above its IPO price, analysts are excited, and the stock is on a run. What's changed?

Facebook in the summer of 2012: Can Facebook monetize mobile?

Just about a year ago, Forbes writer Eric Savitz pitched in with some expert-sounding investment advice: (more)

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