Monday, June 30, 2014

3 Stocks Spiking on Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Stocks With Big Insider Buying

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>Buy These 5 Rocket Stocks to Beat the Market

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Hyperion Therapeutics

Hyperion Therapeutics (HPTX), a commercial biopharmaceutical company, focuses on the development and commercialization of therapeutics to treat disorders in the areas of orphan diseases and hepatology. This stock closed up 2.8% to $25.96 in Wednesday's trading session.

Wednesday's Volume: 192,000

Three-Month Average Volume: 97,075

Volume % Change: 100%

From a technical perspective, HPTX spiked higher here back above both its 200-day moving average of $25.48 and its 50-day moving average of $25.80 with high volume. This uptick higher on Wednesday is starting to push shares of HPTX within range of triggering a near-term breakout trade. That trade will hit if HPTX manages to take out Wednesday's intraday high of $26.10 to some more near-term overhead resistance at $26.77 with high volume.

Traders should now look for long-biased trades in HPTX as long as it's trending above some key near-term support levels at $25 or at $24.42 and then once it sustains a move or close above those breakout levels with volume that hits near or above 97,075 shares. If that breakout hits soon, then HPTX will set up to re-test or possibly take out its next major overhead resistance levels at $30.21 to its 52-week high of $32.98.

Media General

Media General (MEG) owns and operates broadcast television stations and related Web sites and mobile news applications in the U.S. This stock closed up 10% at $20.33 in Wednesday's trading session.

Wednesday's Volume: 2.68 million

Three-Month Average Volume: 448,132

Volume % Change: 546%

From a technical perspective, MEG soared sharply higher here and broke out above some key overhead resistance levels at $19 to $19.62 with monster upside volume. This breakout followed a major bottoming chart pattern for MEG that formed over the last month at $17 to $17.60. Market players should now look for a continuation move to the upside in the short-term if MEG manages to take out Wednesday's intraday high of $20.57 with strong upside volume flows.

Traders should now look for long-biased trades in MEG as long as it's trending above Wednesday's low of $18.64 or above $18 and then once it sustains a move or close above $20.57 with volume that this near or above 448,132 shares. If that move begins soon, then MEG will set up to re-test or possibly take out its next major overhead resistance levels at $23 to its 52-week high of $23.97.

Novadaq Technologies

Novadaq Technologies (NVDQ) develops, manufactures and commercializes fluorescence imaging products and therapeutic devices for use by surgeons in the operating room and other clinical settings where open and minimally invasive surgery or interventional procedures are performed. This stock closed up 5.3% at $16.01 in Wednesday's trading session.

Wednesday's Volume: 950,000

Three-Month Average Volume: 468,942

Volume % Change: 195%

From a technical perspective, NVDQ ripped higher here back above its 50-day moving average of $15.73 with strong upside volume flows. This spike higher on Wednesday is starting to push shares of NVDQ within range of triggering a near-term breakout trade. That trade will hit if NVDQ manages to take out some key near-term overhead resistance levels at $16.54 to $16.75 and then once it clears its 200-day moving average of $17.46 with high volume.

Traders should now look for long-biased trades in NVDQ as long as it's trending above some near-term support at $15 and then once it sustains a move or close above those breakout levels with volume that hits near or above 468,942 shares. If that breakout materializes soon, then NVDQ will set up to re-test or possibly take out its next major overhead resistance levels at $18.45 to $21.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>5 Stocks Under $10 Poised to Pop



>>4 Big Stocks on Traders' Radars



>>5 Stocks Set to Soar on Bullish Earnings

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


Sunday, June 29, 2014

Week In FX Europe – Yields Are Making FX Interesting

BoE's Carney “new” norm is 2.5%

US Bull Flattener will force USD lower Asian appetite for Euro paper supports EUR Bund/Periphery spreads beginning to be squeezed

Interest rates are the key to unlocking the forex market's contained range trading. Investors require a divergence in central bank interest rate policies to provide opportunity. So far, a low-rate environment is affecting market volume and volatility — the new ‘norm' that dealers have had to adhere to for the past few years. Alas, there is hope: central banks will need to stay ahead of a squeeze in prices, a phenomenon that will eventually be created by so much liquidity. A subtle change in rhetoric from Governor Mark Carney at the Bank of England (BoE) to Governor Graeme Wheeler at the Reserve Bank of New Zealand is giving the market a heads up to change, albeit this year or next. U.K. data is strong and it's reasonable for the BoE to forewarn, however, when you have a governor that can sometimes ask questions off script (why is a market not pricing hikes in 2014?), it provides GBP volatility and hence opportunity (look at the pound's move over the past few weeks — most of it equates to various Carney and Monetary Policy Committee speeches). So, it's imperative to understand central bank rates and specifically how they interact with other neighboring policies to understand market movement. In a low rate and low volume market the “carry” trade gets special attention.

Listening to central bank rhetoric and watching the yields certainly provides some market direction. For the mighty dollar, analysts will continue to note that as long as U.S. bond yields are in retreat and the U.S. yield curve continues its bullish steepening (shorter rates fall faster than longer), then the USD should stay offered and perhaps push volatility even lower. However, something is always being priced more aggressively, nothing stays static. Currently, GBP is providing market intraday opportunity.

British Rate-Hike Guesses Persist

GBP continues to be well supported but remains below the pivotal financial crisis level of £1.7050 level. Market expectations for an early rate hike will likely remain in place, especially after Friday's numbers. Final gross domestic product data was largely in line with expectations but saw a healthy upward revision in business investment. With the BoE's Carney continuing to ‘clarify' his view on the first rate hike, it continues to pique the market's interest in sterling outright or on the crosses.

The BoE sees the “new” normal on rates at +2.50% rather than the previous historical average at +5%. Carney expects to hit “normal” levels around early 2017. U.K. policymakers are basically trying to cement the “limited and gradual” script for households and businesses so there are no shocks to the system. This is in contrast to directly signaling to the market to where rates are going. Carney is doing what every good central banker should be doing by adjusting households' and firms' expectations.

The 18-member single currency, the EUR, remains locked into a tight range while holding above the psychological €1.36 level. The euro's rigidity is owed mostly to U.S. dollar weakness, and the European Union's Economic and Monetary Union inflation data which is showing signs of stabilizing this month, and it might suggest that the European Central Bank is in a wait-and-see mode following the recent policy measures to combat ‘deflationary' concerns. When it comes to euro interest rate spreads, the market focuses on Germany and the peripheries.

Asian Investors Boost the Euro

Asia's appetite for euro paper, particularly that of the peripheral eurozone nations, has managed to tighten the bund/periphery spread aggressively, so much so that Spain, Italy, and Ireland have all traded recently through the U.S. curve at one time or other. By default and indirectly, Asian appetite has supported the single unit (€1.3600) to an extent. Currently, it seems accounts are getting a bit wary of how tight euro spreads are again. This has instigated some decent selling interest of emerging market exchange-traded funds at their multi-year highs, with investors happy to take some profit on longs as well as initiating new ‘shorts' up at these levels.

The market's general view is that peripheral nation (Spain, Ireland, Italy, Portugal, Greece, etc.) spreads have run their course for the time being and that everything is looking a bit stretched. If investors are looking for yield, perhaps taking on more ‘duration' risk is a safer and smarter strategy at these spread levels than taking on more ‘credit' risk. By selling Spanish five-year bonds and buying German bunds, investors maintain the same safe credit and pick-up similar yield. This scenario will provide headwind for further euro periphery tightening. U.S. yields will be dragged down by higher bund prices as their spreads begin to narrow — again a scenario that does not provide support for the dollar!

On tap for next week:

Despite it being a holiday shortened week in North America in particular, there is a plethora of data that should make for an interesting week.

In particular, circle July 3 on your calendar. That's the date the U.S. nonfarm payrolls report will be issued one day earlier than usual because of the July 4 holiday. Also on July 3, Canada and the U.S. will publish their respective trade numbers, and there will be a European Central Bank rate decision and press conference. As if that wasn't enough data to make an investor's head spin, the U.K. services purchasing managers index (PMI), an American jobless claims report, and the Institute of Supply Management's non-manufacturing PMI are all due on the same date.

  Russian Central Bank Extends Loan Terms To Help Banks – MarketPulse DB Cuts Global Growth Outlook to 2.3% – MarketPulse European Shares Suffer First Weekly Drop Since April – MarketPulse UK GDP Grew 0.8% in Q1 – MarketPulse Ukraine President Says It Will Fight Russia if Tensions Continue – MarketPulse Ukraine, Georgia and Moldova Sign EU Pact – MarketPulse Czech Central Bank Expected to Exit CZK Weakening in Mid 2015 – MarketPulse Bank of England To Limit Large Mortgages – MarketPulse BoE's Carney Struggles to Articulate his Vision – MarketPulse UK Retail Sales Slows Down in May – MarketPulse Norway's Sovereign Fund To Increase Diversification to Boost Returns – MarketPulse BoE Carney Draws Criticism From Recent Speeches – MarketPulse Pound Falls as Carney Waters Down Rates Move – MarketPulse S&P Head Says Fundamentals Need to Improve in Europe – MarketPulse Portuguese Banks Find Tough Life After Bailout – MarketPulse BoE Carney U Turns on Interest Rates – MarketPulse Pro-Russian Rebels Agree to Ceasefire in Ukraine – MarketPulse German Ifo Falls Impacted by Ukraine and Iraq – MarketPulse Carney Backtracks Says Employment Needs to Recover Further – MarketPulse BoE's Carney Faces Credibility Test – MarketPulse German FinMin Warns CBs about Asset Bubbles – MarketPulse French PMI Contraction Continues Divergence With Germany – MarketPulse Putin Offers Limited Support to Ukraine Ceasefire – MarketPulse European PMIs Weakness Pressures ECB – MarketPulse Draghi: ECB's Rates Likely to Remain Low until 2016 – MarketPulse

WEEK AHEAD

 

* EUR Euro-Zone Consumer Price Index
* CAD Gross Domestic Product
* CAD GDP
* AUD Reserve Bank of Australia Rate Decision
* USD ISM Manufacturing
* EUR European Central Bank Rate Decision
* USD Change in Non-farm Payrolls
* USD Unemployment Rate

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Eurozone Forex Markets

Originally posted here...

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Friday, June 27, 2014

Among A Raft Of Index Changes, Affiliated Managers Group To Join S&P 500

Related AMG Top 4 NYSE Stocks In The Asset Management Industry With The Highest EPS Kohlberg Kravis Takes Over Goodpack - Analyst Blog Related SGNT Morning Market Movers Sagent Pharmaceuticals Announces the Reintroduction of Adenosine Injection, USP

The S&P Dow Jones Indexes unveiled changes earlier this week to the S&P 500, S&P MidCap 400 and S&P SmallCap 600 indexes.

Among the changes announced Tuesday, Affiliated Managers Group (NYSE AMG) will replace Forest Laboratories Inc. (NYSE: FRX) in the S&P 500 after the close of trading on Monday, June 30. LaSalle Hotel Properties (NYSE: LHO) will replace Affiliated Managers in the S&P MidCap 400 and Sagent Pharmaceuticals Inc. (NASDAQ: SGNT) will replace LaSalle in the S&P SmallCap 600.

Actavis PLC (NYSE: ACT) is acquiring Forest in a deal expected to be completed on June 30.

Rayonier Advanced Materials (NYSE: RYAMW) will replace Intrepid Potash Inc. (NYSE: IPI) in the S&P MidCap 400, and Intrepid will replace JAKKS Pacific (NASDAQ: JAKK) in the S&P SmallCap 600 after the close of trading on Friday, June 27. Rayonier Inc. is spinning off Rayonier Advance to shareholders.

Timken Steel Corp. will replace Greenhill & Co. (NYSE: GHL), and Greenhill replaces Spartan Motors Inc. (NASDAQ: SPAR) in the SmallCap 600 June 30. Timken Co. (NYSE: TKR) is spinning off TimkenSteel to shareholders.

Belden Inc. (NYSE: BDC) will replace Fidelity National Inc. (NYSE: FNF) in the S&P MidCap 400 June 30, when Synergy Resources (AMEX: SYRG) will replace Belden in the S&P SmallCap 600. Fidelity is reclassifying its shares into two tracking stocks which are ineligible for S&P indexes.

Veritiv Corp (NYSE: VRTVW) will replace Higher One Holdings Inc (NYSE: ONE) in the S&P SmallCap 600 on Tuesday, July 1. International Paper (NYSE: IP) is spinning off its distributions solutions unit, and the new company will merge with privately held UWW Holdings to create Veritiv.

Posted-In: S&P Dow Jones IndicesNews Events Markets

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Wednesday, June 25, 2014

3 Big-Volume Stocks to Trade for Breakouts

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Hated Earnings Stocks You Should Love

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>Buy These 5 Rocket Stocks to Beat the Market

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Banco Macro

Banco Macro (BMA) provides various banking products and services to individuals, entrepreneurs, companies and corporate customers in Argentina. This stock closed up 4.3% at $37.26 in Monday's trading session.

Monday's Volume: 506,000

Three-Month Average Volume: 194,039

Volume % Change: 181%

From a technical perspective, BMA trended notably higher here with above-average volume. This spike higher on Monday is quickly pushing shares of BMA within range of triggering a near-term breakout trade. That trade will hit if BMA manages to take out Monday's intraday high of $37.58 to its 52-week high of $37.99 with high volume.

Traders should now look for long-biased trades in BMA as long as it's trending above Monday's low of $34.81 or above past resistance at $34 and then once it sustains a move or close above those breakout levels with volume that this near or above 194,039 shares. If that breakout gets underway soon, then BMA will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $45.

Alder Biopharmaceuticals

Alder Biopharmaceuticals (ALDR), a clinical-stage biopharmaceutical company, discovers, develops and commercializes various therapeutic antibodies in the U.S. and Australia. This stock closed up 5.2% at $18.83 in Monday's trading session.

Monday's Volume: 257,000

Three-Month Average Volume: 161,835

Volume % Change: 187%

From a technical perspective, ALDR ripped higher here right above some near-term support at $17.12 with above-average volume. This stock recently pulled back off its all-time high of $22.95 to its recent low of $17.12. Following that pullback, shares of ALDR are now starting to rebound higher and move within range of triggering a near-term breakout trade. That trade will hit if ALDR manages to take out Monday's intraday high of $19.37 to some more near-term overhead resistance at $20.25 with high volume.

Traders should now look for long-biased trades in ALDR as long as it's trending above Monday's intraday low of $17.56 or above more near-term support at $17.12 and then once it sustains a move or close above those breakout levels with volume that hits near or above 161,835 shares. If that breakout triggers soon, then ALDR will set up to re-test or possibly take out its all-time high at $22.95. Any high-volume move above that level will then give ALDR a chance to tag $25.

Tonix Pharmaceuticals

Tonix Pharmaceuticals (TNXP), a development stage specialty pharmaceutical company, focuses on the identification and development of pharmaceutical products for the disorders of central nervous system. This stock closed up 5.5% to $13.11 in Monday's trading session.

Monday's Volume: 249,000

Three-Month Average Volume: 105,244

Volume % Change: 207%

From a technical perspective, TNXP ripped sharply higher here with above-average volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $8.14 to its intraday high of $13.77. During that uptrend, shares of TNXP have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TNXP within range of triggering a major breakout trade. That trade will hit if TNXP manages to take out some key past resistance levels at $14.19 to $15.46 and then once it clears $15.88 with high volume.

Traders should now look for long-biased trades in TNXP as long as it's trending above Monday's intraday low of $12.45 or above $12 and then once it sustains a move or close above those breakout levels with volume that hits near or above 105,244 shares. If that breakout kicks off soon, then TNXP will set up to re-test or possibly take out its next major overhead resistance levels at $17 to $19.88.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>5 Stocks Setting Up to Break Out



>>4 Big Stocks on Traders' Radars



>>A Small-Cap Stock With Big Upside Potential

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.


Tuesday, June 24, 2014

This Little E-Cig Startup Could Be a Big Problem for Big Tobacco (MO, LO, AHII)

Lorillard Inc. (NYSE:LO) and Altria Group Inc. (NYSE:MO) might want to take a look over their shoulder... or perhaps take another, longer look. Not only is the cigarette space as competitive as ever for the likes of LO and MO, but there are some new faces playing the game. And, their strategy is to play the game in a way that's never been played before. Even more alarming to the likes of Altria and Lorillard? These new players are already showing some great progress with this "new way", and are on pace to capture $10 billion of the current annual cigarette market by 2017, up from around $1.0 billion last year.

The latest and greatest of these new entrants is a little startup called American Heritage International Inc. (OTCBB:AHII)... a little company that could really rattle the cages of its bigger brothers.

You may have already seen them. In fact, you may have already seen them and not even known it. Seen what? An electronic cigarette, or an "e-cig" for short. Just like the name implies, an electronic cigarette is a battery-powered device that delivers the nicotine smokers crave, without delivering all the nasty chemicals and carcinogens that a dried-out, processed burning plant - tobacco - does.

There are more players in this space than an outsider and non-smoker might realize. American Heritage International joins names like Blu and Skycig, just to name a few; there are dozens of other, even smallercompanies in the electronic cigarette space too. In fact, it would be safe to say the industry is still fragmented.

Even in its fragmented state, however, these companies have already made a little trouble for the tobacco industry, so much so that Lorillard recently acquired the Blu brand. Altria, meanwhile, is now aiming to expand its Markten brand of e-cigs across the nation, after a limited test rollout last year. All of the major "big tobacco" names now have an electronic cigarettes presence, though again, the market remains highly fragmented, poised to cause more headache for the major, traditional names than not, despite the fact that they each have some presence in the market.

American Heritage International, however, is a name investors as well as big tobacco will want to keep an eye on. See, while other manufacturers make an admittedly solid product, AHII believes (and rightfully so) its product is one of the best - if not the best - on the market.

For starters, the product is 100% American-made, which the company explains is safer and worry-free. American Heritage's electronic cigarettes also look and feel like traditional cigarettes, rather than look and feel like a ballpoint pen hanging out of a smoker's mouth. Those two nuances may seem minor on the surface, but those little details have made a big difference in terms of marketability. In fact, in early market research studies, nine out of ten e-cig users who tried an American Heritage e-cig preferred it to the competitor's e-cig. This young company is positioned to be a disruptor once it launches nationwide, on a full scale.

It's also worth noting that even though electronic cigarettes are cheaper than real tobacco cigarettes, AHII still sees wide profit margins on its product.

With all of that being said, the most significant reason other names in the tobacco industry, like the aforementioned Lorillard or Altria, may want to worry about American Heritage isn't the superior product as much as it is the fact that AHII has a clear and thorough, top-to-bottom marketing plan... not to mention has the wherewithal to put it into action. The experienced management team recognizes that placement in convenience stores just isn't enough. It also aims to maximize online sales, while simultaneously aiming to maximize brand-awareness via sponsorship deals. It's also initiating an affiliate plan. Other players should be worried.

Bottom line? Though it was only a small order, the initial order of inaugural American Heritage electronic cigarettes sold out pretty quickly. The next order is apt to do the same. It's evidence of tremendous demand for this new product, much of which was created purely from buzz and publicity. The best thing going for investors right now is that most of the market still hasn't heard of AHII, but given the groundwork that's been laid on top of the exponential growth of the electronic cigarette market, that's not a condition that's going to last long. And once the word about American Heritage gets out, both its e-cigarettes and the stock may be hard to get.

For more on American Heritage, its investor presentation PDF offers the most insight. The coporate website can be found here.

Good (though not great) News for Medical Marijuana Companies (ERBB, PHOT, MJNA)

Companies like Medical Marijuana Inc. (OTCMKTS:MJNA), Tranzbyte Corp. (OTCMKTS:ERBB), and Growlife Inc. (OTCBB:PHOT) were on the receiving end of another dose of good news on Thursday.... not that they necessarily needed it. That's when a study conducted by researchers at the University of Texas was published, illustrating how not only did the advent of medical marijuana not increase crime, but rather, coincided with a (relative) decline in crime.

Surprisingly, shares of PHOT, MJNA, and ERBB didn't respond exceedingly well to the report. In fact, Medical Marijuana shares fell following the news, while Growlife shares were flat. The only winner following the University of Texas publication was Tranzbyte Corp., with its stick soaring 30% on Friday, though it's possible other news from ERBB on Friday was the key catalyst for that day's bullish move.

So why wasn't the study more of a catalyst for the industry's stocks (stocks that have up until this point rallied on even the slightest puff of industry-supportive news)? There are two likely reasons. One of them is the distinct possibility that stocks like PHOT, MJNA, ERBB, and the all the rest that have benefited from marijuana mania are finally experiencing PR fatigue and - no pun intended - publicity burnout. The same premise or story can only be circulated so many times before investors grow immune to it and stop responding. With nearly three months of such chatter under our belts following the January 1st legalization of medical marijuana (or recreational marijuana) in a handful of states, it's now time for the industry to put up or shut up. First quarter's earnings will be the proof of the pudding.

The other possible reason the medical marijuana industry's stocks didn't respond all that well to the publication's findings is a question of their relevancy - the researchers only reviewed data from 1990 through 2006. Detractors pointed out that a large number of dispensaries weren't established until afte r2006, and it's conceivable that the situation and impact of legalized medial marijuana now has changed within the past eight years. Still, detractors have yet to explain how or why crimes would have fallen - if selling medical marijuana risks increasing crime - during that study's timeframe when there were at least some dispensaries in operation for at least a decent portion of those sixteen years.

That being said, while some of the most voracious supporters of medical marijuana and/or investors of companies like Tranzbyte, Growlife, or Medical Marijuana are pounding the table because of the findings, even the affected companies themselves don't seem overly keen on holding the research up as a trophy or a milestone in their quest for wider legalization. It looks like they're holding out for more and fresher data on the matter, and holding out for the impact of recreational marijuana in particular.

In other words, the University of Texas study isn't a game-changer for the industry. It's just a modest feather in medical marijuana's cap.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.

Sunday, June 22, 2014

Come Behind the Scenes of Tech Pioneer Cisco, Part 2

The following is part 2 of a two-part series.  Click here for Part 1, which was published Friday.

NEW YORK (TheStreet) -- Cisco (CSCO) is basically everywhere. In addition to Cisco products and services being everywhere, the company is leading the charge in new growth areas, such as smart cities.

Bringing me behind the scenes at Cisco was Patrick Finn, senior vice president of Cisco's U.S. Public Sector Organization. The bonus points in this two-part series: Insights on leadership.

Question #5 Cisco is obviously a tech giant and veteran, making it a prime target for start-up nation. From your experience in sales and amongst your team, how much time is reserved for studying competitors and how to thwart their initiatives? I feel as though businesses large and small do not pay attention to the upstarts nipping at their heels until it's too late. Cisco holds a firm place as a leader in technology around the world. Part of that leadership is acknowledging our competitors, but "thwarting" initiatives might not be the most accurate way to describe how we spend our time. Quite often, start-ups identify an area of opportunity that the technology community feels is worth dedicating more time to.

Rarely are these start-ups taking advantage of an opportunity that Cisco has not already recognized and started work to develop, and if they have, then we need to assess whether it's something we compete with directly, or if there is greater opportunity in working with a company that has proven its capability. With Cisco's home in Silicon Valley for nearly 30 years, we've seen many businesses, large and small, work to gain market share in all sectors of technology. We are fortunate to have so many of the best engineers and business leaders to guide our development in all sectors of IT, and we are always looking to acquire new talent and push to drive innovation where it makes the most sense. As I have said, I have a great team and critical parts of my team are the systems engineers that work with our customers. They see these start-ups and the problems that they are trying to solve. Further to this point, Cisco also sees start-ups as advantageous for our overall business and growth strategy. Our approach is centered on build, buy and partner, which fuel the company's innovative culture. Oftentimes, Cisco expands into new disruptive markets by either building internal incubator programs, and buying or partnering with companies large and small. A combination of a good strategy and exceptional leadership inside the business allows Cisco to aggressively seek out opportunities in the market and stay competitive.

Stock quotes in this article: CSCO, PEP, IBM 

Some problems that a customer may face will require us to present a solution that has been put together by an ecosystem of partners. Many parts of these solutions are built by start-ups that enhance Cisco products and technologies. Again, we don't automatically assume that a start-up means a competitor because they might be critical in solving a customer's problem. The focus is on what are we doing to help a customer solve a problem.

Question #6

Cisco has become legendary, or at least in my finance circle, for the use of its technology to make meetings more efficient. Help us all with a few tips on getting us in and out of meetings quicker!

Virtual meetings today are so different now than they were in previous decades, and the capability is increasing all the time. The move from audio-only to a fully interactive meeting experience with video, desktop sharing, real-time editing, and the ability to do everything from any device and from any location is an important change for those of us who participate in meetings for the majority of our days. It also works to keep teams connected and engaged, regardless of where their desk maybe located.

Being able to make eye contact and interact in real-time allows us to appreciate real people, and not just a voice at the other end of the line. We're more inclined to work together and align with that "one team, one fight mindset" mentioned earlier if we are seeing peoples reaction to our dialogue or having the ability to determine if "Yes" means I hear you or if "Yes" means I agree. Video eliminates these barriers to communication, which often leads to longer meetings. In terms of tips for making meetings more efficient, utilizing the full suite of features available with meeting technology is the best way to get things done quickly. Always share video so you can respond to verbal and nonverbal cues, record a meeting so you can go back and reference the materials, and share materials via real-time instant messaging and screen sharing so that you can collaborate without relying on a huge email chain.

Cisco's WebEx Meetings technology offers these features and has seriously streamlined my workdays, about 70% of which are occupied by meetings. I often present to a live and a virtual audience and I always try to include the virtual audience into the discussion. I often ask questions to the live and virtual audience to engage in the topic. Keeping things lively and moving is critical. Question #7 Unfortunately, market conditions continue to be challenging in the U.S. Even though the Americas division has been a top performer for Cisco in recent years, an interesting development seems to have occurred: more discounts and rebates needed to drive a sale. When is the right time for a business owner to offer a discount, and is there a smart way to do it as to make it financially impactful? The focus on price occurs for many reasons, some that you have mentioned. It is hard to agree with your generalized comments on discount and rebates given the breath of our products (hardware and software), solutions and services. Our "go-to-market" includes dealing with our partners and often contracts where if we did not ensure that the customer did not understand the value of the acquisition we would be focused primarily on price, discounts and rebates.

Stock quotes in this article: CSCO, PEP, IBM 



What is the goal of the technology? Where is the technology in its lifecycle? Is a customer buying components, an architecture or a system? How critical is the technology or the end-users needs? What is the technical capability of the customer and is other services required for success? What is the risk profile of the customer in a particular situation for a particular solution? When a customer evaluates an acquisition is he/she also taking into account the cost to maintain, to operate, to hire knowledgeable, quality engineers? I can build you a usable communication system with barbed wire, string and a few tin cups, but is that what you want in a hospital, or being used by first responders or in our classrooms?

Our goal is to provide competitively priced solutions that address our customer's needs that allow them to operate into the future. Lasting relationships are never developed on the price of a product or a solution but what happens when that product and solution is in production. We stand by our customers and ensure we support their needs. You can't put a price, a discount or a rebate on that type of approach. To reiterate, we provide competitive solutions focused on customer needs. I believe that solving customer problems creates the financial impact that is required.

Question #8

Cisco has acquired a good number of businesses through the years. On day 1, 30, and 90 from new people arriving at Cisco, how do you seek to integrate them into the Cisco culture and measure their performance?

Our main goal when we acquire a company is to let the individuals who created and have mastered their technologies before joining Cisco continue to do what they do best. One great example of working with an acquired company is Cisco-Meraki. We acquired Meraki, a San Francisco-based maker of Wi-Fi, security and mobile device management for medium-sized businesses, in December 2012. The tight-knit, young, do-it-yourself culture of Meraki was something that we wanted to preserve while integrating the 300 plus employees into our organization.

As part of that process, we created an innovation-friendly workspace in San Francisco for Cisco-Meraki employees that felt similar to their old office. Earlier, I mentioned the importance of inclusion, and that means creating a work environment that respects and appreciates differences, including diverse perspectives, work experiences, life styles and cultures. These differences are sources and drivers of innovation. Earlier, we talked about leaders being responsible for the vision and the mission. At Cisco, we make sure that our new employees are clear on the "road map" that our leaders have established. We then have to trust that this person has demonstrated their ability to do great things, and we have to give them the freedom to do what they do well in their own way.

It is important that we create this culture for new, acquired and tenured employees to ensure we have a healthy environment. We measure everything at Cisco but we focus our measurements on execution and outcomes. Many of our acquisition do the same thing. As we work through the integration process, we are aware of the "People, Process and Technology" that needs to be considered in order to create success.

Stock quotes in this article: CSCO, PEP, IBM 



Acquiring does not mean we kill the people, process and technology of the company that is joining Cisco. Actually, we try to understand it and often focus on scaling it through our "Go-to-Market" strategy. We can create synergy and scale if we understand each company and how they operate around "People, Process and Technology."

Around the Horn

In all of these executive exclusives, we try and end with a fun "around the horn" session. A couple of quick questions I had (answer in one or two sentences): Prior to Cisco, you were at Pepsi Cola International. How did you make the transition from a consumer company to Cisco?

Easy. Both companies focused on the customer. I received my training at IBM (IBM) and then went to Pepsi (PEP) to understand the challenges of being a customer. I believe Pepsi taught me how technology can be a differentiator and an enabler for customers. You work with a lot of high-profile professionals across government and other public and state entities. How does Pat Finn preserve his sanity while dealing with such high-caliber individuals? Keep it real. The greatest people keep a perspective on things and don't take themselves too seriously. I laugh at myself and see the humor in every situation. I never get lost in a title or a position or a job. I practice being authentic. Long-time, legendary Cisco CEO John Chambers -- what are the three things you have learned from him? I've learned to ask good questions, be prepared and be approachable by perfecting the art of listening. You were very much part of the Sept. 11, 2011 events, leading a team to support New York City customers who were affected. How did you inspire your team at the time to help in the wake of this event? Sad days...I don't tend to talk about those days. There were many great leaders involved in Cisco's response at that time and I was honored to be a member of the team. A very important secret about inspiration: Leaders are inspired by the people around them. If you were aware of what some amazing people accomplished during that time, you would know that they inspired me and they still do every day. Ingrained in Cisco's culture is giving back not just in times of turmoil but every day. You are highly committed to a great not-for-profit called Inwood House. How have you sought to inspire the teens you are in contact with, and what are your broad observations on the next generation of potential leaders? Through my work with Inwood House, STEM, U.S. military and through students I have interacted with, I believe our country is in good hands with the next generation of young men and women. I see a group of motivated, high-energy, articulate, focused, committed, loyal and smart men and women who are not being defined by where they are at today, but where they are going.

I am proud of what organizations, such as Inwood House, are doing to give inner city youth a chance for a complete education in the 21st century and give them a shot at success by providing a foundation. If you thanked a young man or woman in uniform for their service to our freedom and our country, you will see that foundation that I am talking about. -- By Brian Sozzi CEO of Belus Capital Advisors, analyst to TheStreet. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Stock quotes in this article: CSCO, PEP, IBM  At the time of publication, Sozzi held no position in the stocks mentioned.

Has the Amazon Prime Price Hike Paved the Way for a Netflix Increase?

Online-House of Cards Netflix/Kevin E. Bell Kevin Spacey in "House of Cards." Now that Amazon (AMZN) is making its Prime service more expensive, it probably won't be long before Netflix (NFLX) follows. Both Internet darlings announced during their most recent earnings conference calls that they were exploring rate increases to help offset rising expenses. "It's not clear that one price fits all," CEO Reed Hastings said back in January during Netflix's earnings call. "We're trying to figure out some models of good, better, best price tiering that makes sense and provide some flexibility for our customers, at least for our new customers. Our existing customers of course we would grandfather very generously." The comments followed a letter to shareholders that offered similar comments about protecting existing subscribers as it offers what would be pricier options for new members. However, Hastings and CFO David Wells write "we are in no rush to implement such new member plans and are still researching the best way to proceed." That's fair, but now that we've seen Sirius XM Radio (SIRI) introduce its second price hike in three years back in January and Amazon go through with a 25 percent increase to its Amazon Prime loyalty shopping membership plan, waiting may not be in Netflix's best interest. Netflix Will Still Be a Deal The market knows that Netflix is testing new price points, and sometimes it's better just to rip off the Band-Aid in one swift tug. The video buffs who subscribe may not like the move, but shareholders will love it. An increase that protects existing Netflix members should help retain existing users, but it would also encourage studios to offer newer movies and even more original TV shows like the acclaimed "House of Cards" since the smorgasbord would no longer be cheapening their content at $7.99 a month. Amazon, the leading online retailer, also telegraphed an increase during January's earnings call: "With the increased cost of fuel and transportation as well as the increased usage among Prime members we're considering increasing the price of Prime between $20 to $40 in the U.S." Amazon opted to boost its rate by $20 to $99 a year. It was the first increase since Amazon rolled out the plan nine years ago, and the 25 percent bump is less than the overall inflation rate in that time. Plus, Amazon has also improved the platform. It's not just about complimentary two-day shipping for Amazon-warehoused merchandise and discounted overnight deliveries. An Amazon Prime subscription includes include monthly Kindle e-book rentals and a Netflix-like streaming video service, all at no additional cost. Will Customers Pony Up? The vast majority of Amazon Prime customers are expected to bite the bullet. Netflix will probably find a similar reaction if it follows Amazon by hiking its basic monthly plan to $8.99 or $9.99. After all, Netflix has also made its plan more valuable by expanding its digital catalog. Sure, most offerings consist of TV shows and older movies, but we've now had two years of head-turning, award-winning original programming available only through Netflix. Netflix has proven that it's reinvesting a lot of what subscribers pay into acquiring additional content. Netflix may grandfather in existing members -- something that Amazon chose not to do once existing Prime members hit their annual renewal date -- but the rate should head higher sooner rather than later. There are big stock gains to protect and content licensing deals to acquire. That's entertainment.

Saturday, June 21, 2014

Candy Crush Saga Game Maker Files for IPO

King, the maker of Candy Crush Saga, recently filed for an IPO in the U.S. for $500 million. According to the latest news, each share will be priced at $24 and is expected to sell between $21-$24. News of the IPO did not excite analysts. There have also been comparisons with Zynga (NASDAQ: ZNGA  ) , a web gaming portal whose debut raised many expectations. Candy Crush Saga has 94 million daily users, and the hit game earns the company 78% of total revenue.

Candy Crush Saga is a game where aligning similar kinds of candy earns points and more lives to finish all 500 levels. Subsequent levels are periodically released by the company, which adds to the excitement of the game. The game is available for free download, and it is not necessary to pay to enjoy the game or to progress through it. Yet, players spend approximately $800,000 daily to buy lives or cheat codes.

Zynga versus King
When Zynga began trading, the share price had fallen below the opening price by the end of the first day. Currently, the company is valued at half its offering price, but its fortunes are changing. Under the leadership of Don Mattrick, and after the acquisition of a mobile game developer, Zynga has put itself in a place for a better future. Creating revenue through games is not easy, and game companies have had to innovate to earn.

In games like Farmville, players can start by getting help from friends, but eventually the time will come when you have no choice but to buy tractors. In Candy Crush Saga, you have to buy lives to complete a level and move onto the next. Zynga stayed a web-portal and missed out on the mobile gaming arena. Candy Crush Saga synced players' progress across Facebook (NASDAQ: FB  ) , smartphones, and tablet devices, reaching out to users through multiple points. This was the key to the game's success, particularly vis-a-vis Zynga.

King is a strategic player. Its profits in 2013 stood at $1.9 billion. By December 2013, it had 225 million average monthly unique users. Even though Zynga has had more than 300 million average monthly users, it lost them to mobile gaming. By the fourth quarter of 2013, Zynga had only 112 million average monthly users and had severed its relationship with Facebook. On the other hand, King used social media to its advantage. Being available on mobiles and tablets also meant that people had more time to spend playing Candy Crush.

This business isn't a game
It is not possible to predict the future of the game. It is possible, however, that a more flashy game could change business for Candy Crush overnight. King ought to know that. But, the company's strategy has been to know the user, which is why the majority of Candy Crush players are women between the ages of 25-45. A typical mobile gaming company like Glu Mobile, with a best-seller such as Deer Hunter 2014, does not normally relate with this demographic.

King found success with Candy Crush by applying good business acumen to a sensitive market. Games have their trends, and with every new game there will be distractions. But, King knows that the path from creating a super hit game to generating revenue is not straight and easy.

Compared to the competition, King has an edge in the market. It not only concentrates on creating good games, but also tries to understand and know users. The company is already making money, so it should have a very positive opening in the market. 

Get in early on Apple's next revolutionary development
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.

‘Bonds’ Limited Upside’ Points to Role for Gold, Says Gold Council

Gold prices reached a nine-week high Friday as investors turn to the metal as a hedge against inflation given Fed policy to keep interest rates down and amidst continuing concerns over tensions in Iraq and Ukraine.

Gold futures for August delivery inched up 0.4% to $1,318.90 an ounce Friday morning, close to their 2014 high of $1,322.50 on April 15, according to Bloomberg.

Regardless of the level at which the precious metal is trading, the World Gold Council says investors have much to gain by embracing it, as the group reported Thursday. 

“Some people may not want liquid alternatives [like gold] in their portfolios, because they already have hedge funds and private equity holdings,” explained Juan Carlos Artigas, director of investment research for the World Gold Council, in an interview.

“Actually, we say that whatever your portfolio is, investors should consider gold, given the way it’s shown to improve performance and lower risk.”

Plus, low returns on fixed-income holdings make the case even stronger. “We suggest a strategic — not a tactical — allocation” for advisors and their clients, Artigas explained.

“With the current environment with bonds and their low returns, which are not able to provide the same cushion as in the past two decades for investors – in other words, limited upside — we have found that increasing investors’ allocation to gold can be beneficial.”

(The SPDR Gold ETF (GLD) hit a high of about $133 in mid-March; it traded just below Friday at $127.)

Current Picture

Of the roughly $153 trillion in investments tracked by the Bank of International Settlements, World Gold Council and other groups, just 1% is held in gold. About 5% is kept in other liquid assets, 5% in money-market products, 43% in equities and 47% in fixed income.

“Gold is broad and very liquid. There are tons of ways to invest in it,” Artigas said. “It depends on how the investors want to look at cost structures and from other perspectives. Gold is really beneficial in terms of performance and diversification.”

Analysis of returns from January 1990 to March 2014 shows that gold is much less correlated to the stock markets than hedge funds, private equity, REITs and commodities, according to the council.

Gold is also good at protecting investors from risk-tail events.

“This is a fancy way to say that it offers protection from systemic risk that has a low probability; but if it happens [like with the financial crisis, sovereign debt-crisis, etc.], it can have devastating consequences.”

The council suggests that investors that typically hold about 60% equities and roughly 40% bonds, look at diversifying with a 5% to 6% gold holding.

For investors holding hedge funds, REITs or other liquid alternatives, an allocation of 3% to 4% “may be optimal,” Artigas says.

This allocation of gold “is very important, which is a key finding of the paper,” he notes.

World Cup

For those looking to hold gold in other ways — such as via the coveted FIFA World Cup trophy, it should be noted that the World Cup winner will receive a replica that is gold plated.

The current trophy, which was first awarded in 1974, is made of 18-carat gold and weighs 13.61 pounds. It remains in the possession of FIFA.

The original trophy was awarded to Brazil, who won the tournament for the third time in 1970. It was stolen in 1983 and is believed to have been melted down and sold.

FIFA made a replica of the first trophy using 3.97 pounds of gold.

---

Check out Morningstar Goes to Cash on ThinkAdvisor.

Will The Galaxy S5 Beat The iPhone 6?

There have been a lot of rumors and a lot of alleged leaks about a higher-end Samsung (SSNLF) Galaxy S5 hitting the market soon. This version, dubbed the Galaxy S5 Prime, is said to sport 3GB of RAM (up from 2GB in the current S5) and a quad-HD (2560x1440) display, up from 1920x1080 on the pain S5. It is also said to sport either a next-generation Exynos processor coupled with an Intel XMM 7260 modem ora Qualcomm (QCOM) Snapdragon 805 paired presumably with the latest MDM9x35 modem from Qualcomm.

What are the odds that this model even exists? We very recently saw news of the LG G3's 2560x1440 display hit the Web over the last week or so, and given that LG is probably going to play up this feature, Samsung is also likely to want to be able to keep up in the smartphone "resolution wars." Interestingly enough, though, the LG G3 will apparently sport a 5.5-inch 2560x1440 panel. If the rumors around Samsung's phone are correct, the S5 Prime should offer even higher pixel density at the same resolution on a 5.1-inch display.

That being said, such a phone is likely to be extremely expensive to make. Samsung already launched the Galaxy S5 (which had a larger screen than the S4, faster/likely more expensive processor, and other enhanced goodies) for about $100 less than the Galaxy S4 debuted at. This means if the company wants to preserve its margins here, it will either need to sell the purported S5 Prime for significantly more than the current S5, or the S5 Prime won't really sport these BoM-cost-ballooning features.

Should Apple worry? The big question then is whether Apple (AAPL) -- which has been on an absolute roll with its iPhone products lately -- has anything to be worried about vis-a-vis an even higher end, premium-tier Galaxy S5. While Samsung would handily win the "spec wars" with three times the RAM and a much sharper display, it's important to note that Apple's key differentiation point isn't necessarily the hardware, but the harmony of the hardware and the software.

For customers who prefer the ease of use of iOS, there is simply no alternative to Apple, and mainstream customers who are "used to" iOS have a rich library of iOS apps and are also probably hooked into iTunes won't switch to a Samsung/Android phone. It is this differentiation via software (which is R&D intensive but very COGS-friendly) that helps Apple not only maintain its share of the high end, but also allows it to do so with fantasticprofitability.

Conclusion Samsung, LG, and the hordes of Android vendors can bring in the flashiest displays and biggest "on-paper" specifications, but for many users, iOS and the ecosystem that surround it are what make Apple's phones worth the premium, not necessarily the hardware. Any company can buy an obscenely expensive, high-resolution panel and put a ton of RAM in its phones, but not any company can build the ecosystem, the brand, and the customer loyalty that Apple has.

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Friday, June 20, 2014

Vernon Davis: Good tight end, lousy stock?

vernon davis San Francisco 49ers tight end Vernon Davis is publicly traded on an exchange called Fantex. Will his holdout hurt his value? NEW YORK (CNNMoney) If a famous CEO suddenly decided to not show up for work until he or she got a new contract, wouldn't you seriously consider dumping that company's shares?

That may be the dilemma facing owners of a stock tied to the value of star football player Vernon Davis, who missed his team's mandatory minicamp this week.

Davis, the Pro Bowl tight end for the San Francisco 49ers, is listed on Fantex, a relatively new exchange that lets investors (and presumably lots of sports fans) track the financial performance of athletes.

There are SEC filings and everything. This is not fantasy football.

Fantex paid Davis $4 million upfront in exchange for 10% of what Fantex calls "future brand income." That includes what he earns on the gridiron as well as other off-field activities such as endorsements ... and potentially broadcasting after his career is over. So what an investor is getting from buying the stock is an investment that tracks the Fantex financial cut of its relationship with Davis.

The Vernon Davis stock, which trades under the ticker symbol VNDSL on Fantex, had its initial public offering in late April. It debuted at $10 and currently trades around $11.

The stock hasn't fallen below $10. It also hasn't gone any higher than $12.50. It is set to pay a dividend of 70 cents per share in August. So with a yield of 6.3%, you could call it a blue chip value holding of sorts.

Despite signing a five year contract in 2010 worth $37 million, Davis thinks he's worth more because of the way he's been playing. He even wrote about it for Sports Illustrated.

But if Davis holds out for the rest of the summer and risks missing actual regular season games, won't that hurt the value of his stock? I talked with Buck French, the CEO of Fantex, to find out the scoop.

French explained that Fantex would not be hurt if Davis doesn't suit up in September. That's because he is contractually obligated to pay Fantex 10% of his usual salary -- regardless of whether or not he is playing and being paid. In fact, there is a good story that goes into more detail about why the Fantex deal might hurt the negotiating leverage of Davis on the Niners Nation blog.

"He either goes back and plays under his current contract or he gets a new one. Either way it generates inc! ome for us," French said.

Still, you have to wonder if Davis is the wisest investment. He's not exactly a star when it comes to endorsements. He was in an Under Armour (UA) commercial just before the Niners drafted him out of the University of Maryland in 2006. But he's no Peyton Manning.

Davis also owns a couple of Jamba Juice (JMBA) franchises in the Bay area and an art gallery in San Jose. That's pretty cool. It might not be enough to make his stock a screaming buy though.

He is, however, the only buy on Fantex right now. The exchange has three more IPOs pending. But they are all pretty risky.

There is one for Cincinnati Bengals wide receiver Mohamed Sanu ... who is not a household name and plays in a small market. There is also one for Buffalo Bills quarterback EJ Manuel. He had a promising start last year in his rookie season, but he missed several games due to knee injuries. A knee injury for an athlete is kind of like an earnings warning or too much debt for a stock. A gigantic red flag.

And then there's Arian Foster of the Houston Texans. Foster, and not Davis, was supposed to be the star attraction for Fantex. Heading into last season, he was one of the best running backs in the game. He was also set to star in the movie "Draft Day" with Kevin Costner.

But a back injury forced Foster to end his season in November. Fantex delayed his IPO as a result. And then "Draft Day" hit theaters in April and was a box office flop.

I joked with French that Fantex might be the 2014 version of the old SI cover jinx or EA (EA, Tech30) Madden game cover curse.

"Arian's injury was unfortunate," he said. "But Davis generates more dialogue about Fantex."

French said that he's happy to have Davis in the Fantex roster and believes that there is good potential for him to earn more once his playing career is done. French even spun a big negative about Davis -- he was famously benched in the middle of a 2008 game by former Niners ! coach Mik! e Singletary -- as a transformational experience.

If that's true, Davis might want to report to training camp this summer. French said he hasn't talked to Davis since his holdout began. But he's not too worried.

"The market will determine the stock price. Not me," Davis said.

Fair point. I'd still probably pass on Davis as a stock. He'd be a great fit for your fantasy team though. (And I sort of know what I'm doing. I'll not-so-humbly point out that my wife and I won our league last year ... go Brooklyn Brawlers!) I just wouldn't draft him before Julius Thomas or Jimmy Graham.

That's assuming Graham still qualifies as a TE of course. But that's what his Twitter (TWTR, Tech30) bio says at least. Check out my Turner colleagues at Bleacher Report for the scoop on that bizarre story.

Carl Icahn Takes to Facebook after Twitter Sensation

NEW YORK (TheStreet) - After adopting Twitter (TWTR) in 2013, billionaire Carl Icahn will now expand his shareholder advocacy to Facebook (FB) as the activist increases his presence on social media.

Icahn Enterprises, the holding company about 90% owned by Mr. Icahn said in a Friday afternoon press release that the activist investor intends to use Facebook, as well as his website and Twitter, to communicate to the public about issues he is interested in.

Icahn's Facebook page will be www.facebook.com/carlicahn. His Twitter handle is @Carl_C_Icahn. 

"It is possible that the information that Mr. Icahn posts on Facebook, through the Shareholders' Square Table website and to its members, and on Twitter, could be deemed to be material information," Icahn Enterprises said in the press release.

"Therefore, in light of the SEC's guidance, we encourage investors, the media, and others interested in our company to review the information that Mr. Icahn posts on Facebook, that he provides on the Shareholders' Square Table website and to its members, and that he posts on Twitter, in addition to the information that we disclose using our investor relations website, SEC filings, press releases, public conference calls and webcasts," the company added.

Icahn first made waves on social media when he used his Twitter account to discuss a takeover bid for Dell and a multi-billion dollar stake in Apple (AAPL). After Icahn failed to win a proxy campaign to buy Dell, he then used Twitter as a means of discussing conversations he had with Apple CEO Tim Cook concerning the iPhone-maker's capital structure.

In many of those social media communications, Icahn Enterprises has been forced to make with the Securities and Exchange Commission because of their material nature.

Icahn's move onto Facebook may impact a scorched-Earth campaign he is running against e-commerce giant eBay (EBAY). In March, Icahn has used his Twitter account and his Shareholders' Square website to make pointed criticism of eBay's management and board of directors.

-- Written by Antoine Gara in New York

Stock quotes in this article: FB, TWTR 

Thursday, June 19, 2014

10 Best Mobile Apps for Financial Advisors: 2014

With smartphones and tablets ubiquitous, apps are becoming more important. But as a financial advisor, unless you are looking for another iteration of Angry Birds, how do you decide which apps are worth downloading to make doing business easier?

For the nearly 60% of U.S. adults with smartphones (according to Pew Research) wading through all the possibilities in an app store can be a chore.

ThinkAdvisor turned to Advicent, which, according to its website, is the leading provider of SaaS technology solutions to financial advisors, and Clientwise.com, a business and executive consulting firm.

Some apps were on the lists of both companies. We chose 10 of the most practical.

(Related: 10 Top Mobile Apps for Investors: Dalbar)

The apps cited run the gamut from helping advisors track markets to making travel plans to keeping up with clients.

Here, in alphabetical order, are the 10 Best Mobile Apps for Financial Advisors.

Dropbox

1. Dropbox

This app allows you to move files so they are accesible on any of your devices. No more external drives to fumble with. Like the name says, just drop your files onto a desktop icon and access them on on yourt tablet, desktop computer or smartphone.

Evernote

2. Evernote

This app works as an electronic filing cabinet, allowing you to store quotations, documents, legal briefs and other things with a single click.

PaperPort Notes

3. PaperPort Notes

This app from Nuance Communications is for taking notes on the iPad. It allows text, audio, documents and web content to be combined and shared.

1Password

4. 1Password

Just like the name says, this app creates passwords for all the sites you visit and allows you to login with a single tap while improving security.

Quotestream

5. Quotestream

By creating a folder for each of your clients you can keep track of up to 52 stocks per folder. The apps gives you a way to track portfolios at a glance where you are.

Retire Logix

6. Retire Logix

If you need to show a client just how far their savings will go in retirement, this app will turn the trick with its calculator that illustrates the way various income sources can pay for needs after working years are over.

SignMyPad

7. SignMyPad

Using a stylus or a finger this app allows PDFs to be signed on screen, allowing you to bypass printing and scanning, thereby eliminating paper and saving time and money.

Skype

8. Skype

This time-tested app is a great way to have face time with clients. There’s no need to travel across town or across country so often when you can reach out and see (and talk to) someone from any mobile device or computer.

Timetrade

9. TimeTrade

This app allows your clients to see when you are available for an appointment and to choose the time that works for them. No more back and forth among missed calls and emails while you try to set up meetings.

TripIt

10. TripIt

When Skype just isn’t enough, this app helps organize your itineraries. It’ll keep track of flights, alert you of changes and store confirmation numbers and miles earned. In addition it sends a copy of your itinerary to your email as a reminder.

-- Related ThinkAdvisor stories:

6 Top Mobile Websites for Investors: Dalbar

10 Top Mobile Apps for Investors: Dalbar

What the Facebook-WhatsApp Deal Means for Advisors

Top 10 Mobile Apps for Financial Advisors

 

 

Wednesday, June 18, 2014

Head of troubled Bitcoin exchange speaks

The head of Mt. Gox says he is "working very hard" to fix problems that forced the troubled Bitcoin exchange to stop trading.

Mark Karpeles posted a statement to the website of Mt. Gox, his first comments since the exchange's website was disabled and halted trading, raising concerns over the viability of the digital currency.

"As there is a lot of speculation regarding MtGox and its future, I would like to use this opportunity to reassure everyone that I am still in Japan, and working very hard with the support of different parties to find a solution to our recent issues," Karpeles said in his statement.

Questions about the status of Mt. Gox started to surface Tuesday when Mt. Gox, one of the biggest Bitcoin exchanges, seemed to have disappeared. Its website only displays statements from Karpeles and from the company itself. On Sunday, the Bitcoin Foundation, the group that manages the cryptocurrency, says Mt. Gox resigned from their board of directors.

In a statement released Monday, representatives from the leading Bitcoin exchanges distanced themselves from Mt. Gox. "In order to re-establish the trust squandered by the failings of Mt. Gox, responsible bitcoin exchanges are working together and are committed to the future of bitcoin and the security of all customer funds," reads a statement on the Coinbase blog.

Karpeles' comments follow recentreports that Mt. Gox has received a subpoena from federal prosecutors.

Follow Brett Molina on Twitter: @bam923.

Safeway Could Be On Kroger's Grocery List

NEW YORK (The Deal) -- Safeway (SWY) could be the latest player to join the wave of consolidating grocery chains after confirming it is considering possible transactions, and sources said they believe it could draw interest from rival Kroger (KR) in addition to various private equity firms.

Pleasanton, Calif.-based Safeway on Wednesday confirmed that it is engaged in discussions regarding a potential sale of the company.

In addition, Safeway revealed plans to pursue strategic options for its 49% stake in Mexican grocery store chain Casa Ley SA and its intentions to distribute its remaining 27.8 billion shares in the Blackhawk Network Holdings Inc. gift card business to shareholders.

The announcement by Safeway, which has been facing shareholder pressure to improve financial results, comes amid increasing deal activity in the grocery and supermarket space over the past couple of years. Among recent deals on the larger side have been Kroger's $3.54 billion acquisition of Harris Teeter Supermarkets Inc. on July 9, representing an enterprise value-to-Ebitda multiple of about 7.33. SuperValu Inc., on Jan. 10, 2013, sold its five retail chains - Albertson's LLC, Acme, Jewel-Osco, Shaw's and Star Market - to an investor group led by Cerberus Capital Management LP for $3.3 billion in cash and assumed debt. More recently, on Sept. 10, Albertson's agreed to buy family-owned Texas grocery chain United Supermarkets LLC. Financial terms weren't disclosed, but one source said at the time that Albertson's likely paid between 6.2 times to 7 times United Supermarket's trailing 12-month adjusted Ebitda. Based on that range and Safeway's $1.58 billion in Ebitda during fiscal 2013, a deal for the chain would be valued between approximately $9.27 billion and $11.06 billion. While Safeway didn't disclose the parties it has already held talks with, Cerberus' name has surfaced in reports that claim it would be interested. Cerberus officials couldn't be reached Thursday. Sources said the pairing between the private equity firm and Safeway would make sense, given Cerberus' success in the space and the opportunity for significant synergies. "Somehow Cerberus has made private equity ownership of supermarkets work pretty well," said John Loeb, a principal at food industry-focused investment bank J.H. Chapman Group LLC, in a phone interview. "They've clearly done a good job with Jewel. They were falling behind in the market, as well." Antony Karabus, president of SD Retail Consulting LLC, said that, in addition to Cerberus and other PE firms, a deal with Kroger could also make sense. "Kroger is fantastic at absorbing companies and they're an unbelievably well-run company," he noted. The announcement is the latest in a string of moves by new CEO Robert Edwards, Safeway's former CFO who replaced Steve Burd in the top spot upon his retirement in May. Only a couple of months ago, Edwards discontinued all operations in the Chicago market and he recently sold the company's Canadian operations, Canada Safeway Ltd., to Sobeys Inc. for C$5.8 billion ($5.22 billion). Though Karabus thinks a sale of the company as a whole is the most likely route, the second-most probable action would be "selling off the pieces that aren't core and focusing all capital investments in the markets that are strongest - in California - so they can get the most upside." Still, given how well the company's stock has done over the past several months, it could be an ideal time to sell, he added. Shares of Safeway, which trade on the New York Stock Exchange as SWY, have surged nearly 70% over the past 12 months. The stock added another 2.05% to finish at $35.30 on Thursday. Despite gains over the past 12 months, the company's value in terms of market capitalization has deteriorated quite a bit in recent years as it has failed to keep up with other grocers in the space. Safeway had $8.5 billion market capitalization as of Feb. 19, but its five-year high of $10.5 billion occurred on April 22, 2010. "Safeway was a national chain that had a cookie-cutter store, but they weren't really ahead of the industry on anything," Loeb said. "They cannot compete with Whole Foods (Market Inc.) and all the aggressive high-quality food stores." Safeway officials didn't return any calls. Kroger officials couldn't be reached.

Stock quotes in this article: SWY, KR 

Tuesday, June 17, 2014

Profiting From the Golden Saucer Chart

NEW YORK (TheStreet) -- We had a very strong week in the markets, and many leading stocks jumped this past week. In fact, it was the best week this year by a long shot. But I don't think it will end up being our best week of the year in the end.

This bull market we are in is very strong and has years to run from what I'm seeing. There are a lot of bears and underinvested funds out there, as we basically are climbing the proverbial wall of worry.

We had huge outflows from funds two weeks ago, so that money will be coming back in, pushing markets and stocks higher soon.

Gold and silver continue to move nicely higher, but they are moving a bit too quickly here and are definitely due for a little consolidation period now.

Miners are really coming off these historic lows well and remain a great buy for a long-term hold. Let's move right into the charts and see why we need a consolidation or rest, and where we can expect support to come in. Gold rose 4.10% this past week and did so in style. I've been saying the slower this move is as we come off these major lows, the better.   We did begin to accelerate into the end of the week and we really moved well past the important resistance level at the 200-day moving average on increasing volume. We do need to consolidate here, as such a move above the 200-day average is designed to suck in the last of the bulls. The buy point for gold was back near $1,270, not a break of the 200-day average at $1,310. A week or so of falling back to $1,300 or to $1,280 would give us a very nice handle in this large cup or saucer pattern here. There is no major panic here to buy, and I've been saying that gold isn't so much for trading here yet, rather accumulating physical gold off these major lows. I really like this base. The action out of it is textbook so far.

Stock quotes in this article: GLD, PALL, PLAT, SILVER 

Silver had a huge week, rising 7.37% in the end.

Silver moved to well off the lower end of its flat channel, where I said there was a very low-risk entry point here two weekends ago. A great $2.50 move so far from that buy point. We could run to $22 here, but we do need some rest and I'm looking to $20.50 for support.

Just a fantastic move and behavior here off major lows. Not much needs to be said when silver is behaving so well and predictably. Silver is still following gold, but, as always, it moves more on a percentage basis. Platinum followed gold higher this week and ended up 3.13% on the week. Last weekend I pointed out the continuation pattern that was a little wedge. It pointed to a move lower. But I mentioned that with gold looking ready to move higher, the chances that platinum reversed and moved higher following gold were quite likely. Gold leads the rest of the precious metals, so no matter what patterns we may see here or in palladium, if gold moves decisively one way or another this metal will often follow. Now platinum is butting up against its 200-day average and could see a few days of rest here. But I think we continue higher to resistance at $1,440 first. All in all, platinum is great and I'd consider buying pullbacks here. Next stops are $1,440 and then $1,480 once again, where we should see some more consolidation before a larger breakout. Having platinum move higher only confirms a gold move. Where the Down theory needs the transports to move along with industrials, I suppose we could coin this the precious metals theory, whereby gold, silver, platinum and palladium need to be moving in sync to confirm. We could say this is a precious metals theory buy signal here.

Stock quotes in this article: GLD, PALL, PLAT, SILVER 

Palladium is also confirming the move and moved up 3.74% for the week.

$745 looks like a good resistance area here, where we should see some consolidation now. Great action here and all around in the precious metals this past week.

My thoughts remain that we are coming off history and huge lows for gold and silver. They need to move slowly and build support levels along the way this time, unlike how they moved back in 2011 when they spiked higher for months on end. Those types of moves are never sustainable but sure are fun. We need years now to slowly build nice charts back up near highs and then we can look for a breakout higher that will be a really fun time. It's exactly like the S&P 500 now, which rested and slowly built back up to highs before breaking into new all-time highs and is now running. It's not rocket science, it's just how it goes. It happens over and over in stocks, markets, commodities, treasuries or anything else you can chart. There is always a strong market somewhere and right now it's in leading stocks. In a few years once this huge bull market ends, perhaps it will be gold's turn. Thank you for reading. Enjoy your well deserved long weekend. At the time of publication, the author held no positions in any of the stocks mentioned. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Stock quotes in this article: GLD, PALL, PLAT, SILVER 

European stocks break six-day winning run; BNP slides

LONDON (MarketWatch) — European stock markets moved lower on Thursday, breaking the longest winning streak of the year, as investors digested the latest round of earnings reports.

The Stoxx Europe 600 index (XX:SXXP)  dropped 0.4% to 330.81, after closing higher for a sixth-straight day on Wednesday.

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With a busy day on the earnings front, several prominent firms helped push the pan-European benchmark lower after reporting results. Shares of BNP Paribas SA (FR:BNP)  slumped 3.8% after the French bank said it was hit by a $1.1 billion legal provision, pushing fourth-quarter profit down 76%.

Shares of Lloyds Banking Group PLC (UK:LLOY)   (LYG)  lost 3.8% after the U.K. bank posted a full-year loss as provisions for mis-selling payment-protection insurance continued to weigh on its bottom line.

FLSmidth & Co. AS (DK:FLS)  slid 8% after the Danish engineering firm said it swung to a loss in the fourth quarter and cut its dividend.

The broader losses in Europe came after a solid winning streak, spurred by dovish comments from U.S. Federal Reserve Chairwoman Janet Yellen and by reassurance from European Central Bank President Mario Draghi that the bank stands ready to ease policy further if needed.

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Monday, June 16, 2014

Smarter Ways to Give to Charity

Smarter Ways to Give to CharityPittsburgh Post-Gazette/ZUMAPRESS.com via Alamy A lot of people scramble to make charitable contributions before Dec. 31 to get a tax break, but they may not be making the maximum impact -- either for the charity or for their own tax situation. "When people give at the last minute, they may not be in a position to be as strategic with their giving," says Sara Montgomery, philanthropic services specialist with Wells Fargo (WFC) Private Bank. Sometimes you unintentionally end up diluting the focus of your giving because you didn't have a plan in place, she says. And you may be able to stretch your tax benefits by planning in advance. Here are tips to help you make the most of your charitable contributions throughout the year. Make a charitable-giving plan. As you gather your 2013 charitable-giving receipts to file your taxes this spring, think about how you'd like to do it differently this year. Are there charities you would like to support more? Did you write checks last year you felt obligated to write? Ask your favorite charities what they need the most -- say, cash at certain times of the year (it's not always in December) or larger donations spread over several years. "If you start planning earlier, you can give to the charity in a thoughtful way that makes the gift more meaningful," says Tracy A. Craig, partner and chairwoman of the trusts and estates department at Mirick O'Connell, a law firm in Worcester, Mass. When you have more time, you can work with the charity to designate a specific purpose for the funds or make the most of matching offers. You may also discover that another type of giving could work better for you, such as a investing in a charitable gift annuity if you want to create an income stream for yourself, or making a charity the beneficiary of an IRA or life insurance policy. Build charitable savings throughout the year. Rather than rush to make contributions in December, set aside a little bit of money for charitable giving throughout the year. You don't need to make your contributions then; you can keep the money in a savings account earmarked for charitable giving or in a donor-advised fund so it's ready to go when you're ready (see below for more information about donor-advised funds). "If giving is important to you, make it a line item in your budget," says Montgomery. Another benefit of saving early is that you'll have some money ready to give if you want to help victims of a natural disaster or other emergency. Get an extra tax break from appreciated stock. Giving appreciated stock or mutual funds to charity gives you an extra tax benefit: You can deduct the current value of the investment as a charitable contribution if you itemize, and you'll avoid paying capital-gains taxes on the profits. (You'd owe capital-gains taxes if you sold the stock first and then wrote a check.) Identify investments you may want to donate during the year, and set a target price for transferring them to charity. Ask the charity ahead of time about the steps for transferring ownership, so you're ready to take action when the stock or fund hits your target price. For more information, see Charities: Give Stocks Instead. Consider a donor-advised fund. You can set up a donor-advised fund through many brokerage firms, mutual fund companies and community foundations. You get a tax deduction based on the date you give the money to the fund, but you have a nearly unlimited amount of time to decide which charities to support (you may be required to give a minimum amount every few years from the fund). You can't take back your donations, and the administrator has the ultimate say over which charities to support, although most requests are honored as long as the charity is a 501c3 organization in good standing. You usually invest the money in mutual funds or investment pools until you've chosen the charities to support. You can donate cash, stocks, mutual funds or other assets, and some donor-advised funds even accept shares of privately held companies, real estate and other complicated assets.