Today’s updates cover companies beginning with the letter P-W, several of which gave investors very nice returns. I’ve included the advisor’s current advice on the pick, whenever available, and given you the return from the date of recommendation through the end of 2013.
Peabody Energy Corp. (BTU) was recommended by Elliott Gue of Energy & Income Adviser, and has declined 26.06%.
Priceline.com, Inc. (PCLN) was picked by Ingrid R. Hendershot of Hendershot Investments, who noted, “Priceline is a leader in global online hotel reservations with over 270,000 participating hotels worldwide. Priceline’s business is not capital intensive and thus generates strong free cash flows, which have steadily and rapidly grown from $140 million in 2007 to $1.3 billion in 2011. Profit margins have more than doubled over the last five years from 10% to 24%, with further profit margin expansion expected in 2012. Due to expanding profit margins, Priceline’s net income has compounded at a jet-setting 66% annual rate over the last five years with sales growing at a 33% annual rate. Long-term investors should book a reservation with Priceline, a HI-quality company with strong brands, strong cash flows and strong growth.” The shares have risen 76.81%.
Procera Networks, Inc. (PKT) was picked by Tom Byrne of The Periscope Report, and is down 19%.
ProShares Ultra MSCI Emerging Markets (EET) was chosen by Nicholas Vardy of Alpha Investor Letter. The shares have declined 10.97%.
ProShares UltraShort S&P500 (SDS) was picked by Stephen Todd of Todd Market Forecast, and is down 42.7%.
RMR Real Estate Income Fund (RIF) was chosen by Jack Colombo of Forbes/ISA Closed End Fund and ETF Report, and has declined -2.77%.
Shutterfly, Inc. (SFLY) was recommended by Bullmarket.com. Editor Geoffrey Seiler commented, “Online photo-printing website operator Shutterfly, Inc.’s biggest advantage over competitors is that it has invested in its business and is the only major online photo company that prints in-house, which gives it a significant margin advantage over competitors that outsource their printing needs. We also continue to think that rival Snapfish’s tactics make little sense long term for the struggling Hewlett-Packard, and that the company will sell the non-core asset at some point. We think Shutterfly has the best offerings in the fast-growing online photo space, and that the company should continue to benefit from increased scale, possible international expansion, lower manufacturing costs, and new higher-margin products, like iPhone cases. Shutterfly currently trades at about 12x the 2014 consensus for free cash flow per share of $2.45, or 11x excluding its net cash of $2.49. That’s inexpensive for a fast-growing company riding a solid secular trend.” The shares of Shutterfly have risen 57.19%.
Spectrum Pharmaceuticals, Inc. (SPPI) was picked by Andy Crowder of Options Advantage, and is down 24.62%.
Tableau Software (DATA) was Active Trading Partners’ Mid-Year pick. Editor David A. Banister said, “Tableau Software has been growing at a 90% compounded rate for years using their revolutionary Business Intelligence analysis platforms. Their software allows users across small- to large-size entities to analyze the thousands and thousands of pieces of business data that corporations and organizations receive. They have developed a graphical user interface akin to what Apple did for the personal computer and later Microsoft with Windows. As the graphical interface changed for personal computers, we saw torrid growth from 1983 through 1999 in personal computers. Tableau, we believe, is doing the same thing for business intelligence gathering and analysis, allowing even the entry level employee to analyze data with ease and even have some fun doing so. We expect the stock to return upwards of 60% over the coming six to nine months as investors catch on to the story.” So far, the shares have risen 32.38%.
Thermo Fisher Scientific, Inc. (TMO) was chosen by Richard J. Moroney, CFA, Dow Theory Forecasts, who issued a Sell Alert in our June 14, Daily Alert. Moroney commented, “Thermo Fisher Scientific, Inc. is being dropped from the Focus, Buy, and Long-Term Buy lists. Up 40% since we first recommended it last October, Thermo Fisher hovers near an all-time high. But operating momentum has failed to keep up with the surging stock. Moreover, Thermo Fisher plans to suspend stock buybacks while completing its $15.8 billion acquisition of Life Technologies (LIFE), limiting per-share-profit growth. That move prompted analysts to cut profit estimates for the remainder of 2013, driving the Quadrix Earnings Estimates score down to 12. The stock’s other Quadrix scores are also declining—the Overall score has fallen to 50 from 93 at the end of 2012. Thermo Fisher is now rated B (average).” The shares had gained 30.5% at the time of the sell alert.
3D Systems Corp. (DDD) was recommended by Shortex Market Letter. Editor Joseph Parnes gave us an update in our Issue 747, July 24, saying, “DDD [is a] maker/provider of 3D printers converting data input from computers. Despite high valuation of 11.5 times sales and 38 times next year’s earnings, the stock’s breakout through secondary resistance at 39-41 with heavy volume [is] indicative of higher highs. Volatile. Buying Range: 44-48. Near-term Objective: 58. Intermediate-term Objective: 69. Stop Loss: 37. (Recommended at $29.08 (split-adjusted) dated December 7, 2012. Reached high at $51.94. Return of 78.61%.)” The shares of DDD have gained 58.45%.
TONIX Pharmaceuticals Holdings, Inc. (TNXP) was chosen by Konrad Kuhn of The Konlin Letter, and has declined 6.27%.
Vermilion Energy, Inc. (new symbol VET) was the choice of Roger Conrad of Utility Forecaster. Conrad noted, “Vermilion is a former Canadian income trust producing oil and gas that did not cut dividends either in 2008 when oil prices crashed or when converting to a corporation in 2010. The company has been able to keep dividends rising in a volatile industry for two major reasons. First, they control their leverage. The company has no debt maturities to meet between now and 2015, and debt-to-annualized cash flow is among the very lowest in the industry. Second, the company is heavily focused on production of oil and natural gas liquids, rather than natural gas that’s been in a downtrend the past five years. Vermilion also draws more than two-thirds of output outside North America; this gas sells for global prices that are several times what gas fetches in North America. Buy up to $52.” The shares are up 14.62%.
WisdomTree Japan Hedged Equity Fund (DXJ) was recommended by The Kelly Letter. Editor Jason Kelly noted, “With the victory of Shinzo Abe in Japan, the leader of the Liberal Democratic Party who promised aggressive monetary easing and fiscal stimulus in his campaign, I think the yen will weaken in 2013. That should goose profits in the export economy, thereby boosting Japan’s stock market. The yen is already at two-year lows just since the election and Japanese stocks are up 5% in December, so pent-up was the desire to buy Japan’s recovery. This should continue in 2013. To benefit from it, I suggest buying WisdomTree Japan Hedged Equity Fund at less than $34, to allow settling back after this initial excitement when political struggle dampens enthusiasm. On top of substantial capital appreciation potential, it yields 1.8%.” Wisdom Tree has gained 42.06%.
Errata: Dragon Oil Plc (DRAGF), recommended by William Velmer, of S.A. Advisory, was replaced by Mart Resources, Inc. (MAUXF) in our July 12 Daily Alert. Velmer commented, “We still like Dragon Oil, but have decided to pick another opportunity. Mart Resources, Inc. is an independent international oil and gas development and production company with production in the Niger Delta region of Nigeria. Mart’s proved and probable reserve at the end of 2012 was 17.7 million bbls with a 3P (possible reserves) of an additional 5.4 million bbls. There is always risk investing within Africa, but there appears to be huge upside potential for MAUXF on many fronts. We view MAUXF as a strong speculative buy with 100%-200% appreciation potential and a very attractive dividend yield of 13.8%.” MAUXF has declined by 7.59%.