Best Auto Car Show: April 2014

Wednesday, April 30, 2014

That Chipotle Burrito Bowl Will Soon Cost You More

Inside A Chipotle Restaurant Ahead of Earnings Figures Craig Warga/Bloomberg/Getty Images There have been plenty of laggards in the restaurant business this earnings season, but Chipotle Mexican Grill (CMG) hasn't been one. Winter storms that slowed business to most eateries in January and the more problematic trends gnawing away at eating out in general during the balance of the quarter just didn't apply to Chipotle. The rapidly expanding chains saw comparable-restaurant sales soar 13.4 percent during the first three months of the year, bucking against the negative showings at most of the casual dining, fast food and even quick-service operators that have already reported. This is the kind of development that the market would naturally interpret as good news, but Chipotle hasn't been as lucky. In fact, the country's favorite burrito roller saw its stock hit a three-month low to kick off this new trading week, fetching levels last seen in late January. Investors are getting skittish about what they're seeing on the way down to the bottom line at Chipotle, likely unaware that today's challenge is tomorrow's opportunity. Inflation Station From coffee to milk, shrimp to limes, many food items are a lot more expensive than they were a year ago. That's inflation rearing its ugly head. Chipotle isn't adding shrimp to its menu anytime soon, and it just started testing coffee at a couple of airport locations late last year. However, it has been at the mercy of other menu components moving higher lately. The fast casual darling singled out the escalating costs of beef, avocados and cheese for nibbling away at its margins during this year's first quarter. The margin contraction was evident in Chipotle's latest quarterly report. Revenue climbed 24.4 percent as the combination of brisk expansion and hearty comps fueled another top-line pop. Net income, on the other hand, only rose 8.5 percent when pitted against last year's freshman quarter. A big reason for less of Chipotle's sales making it down to the bottom line is inflation. Food costs as a percentage of revenue has gone from 33 percent a year ago to 34.5 percent now. Spoiler alert: it's going to get worse in the near term. Chipotle's targeting food costs to eat up more than 36 percent of its revenue in the next couple of quarters, forcing analysts to scale back their earnings estimates for the current quarter. Higher Prices Aren't the End of the World The inflation is real. Cheese prices are expected to climb 10 percent this year, and it's even worse on the beef side where Chipotle's paying 25 percent more for its steak than it was when the year began. Everything from farmland droughts to a 30 percent reduction in California avocado production will result in Chipotle paying more to serve you that next foil-wrapped barbacoa burrito with cheese and guacamole. Chipotle has swallowed the increases so far, but a response is now coming after Chipotle missed Wall Street's profit forecast during the first quarter. "With all of this food inflation we have seen so far and expect to continue to see, we've decided to increase our menu prices," Chipotle announced during its mid-April earnings call. This is Chipotle's first company-wide increase in three years. It has gradually adjusted prices in some markets as competitive pressures allowed in the past, but now it has little choice but to introduce new menu boards this summer with slightly higher prices. Customers won't like it, but they're not likely to complain. The beauty of running a popular restaurant at a time of food inflation is that patrons will actually see bigger increases if they simply eat at home. After all, if items at the grocery store to assemble your meal theoretically doubled in price you would be treated to a 100 percent increase. Since food costs are a little more than a third of Chipotle's sales, passing on those costs to consumers would be closer to a 35 percent increase to keep profits intact. This is an extreme illustration, of course. Only some components have been moving higher. Chipotle believes that the increase will average somewhere in the mid-single-digits. In short, that carnitas bowl will cost you a little more, but it's not likely to break the bank. That should come as a relief to Chipotle fans heading out to lunch once the new menu boards get updated this summer, but it should also come as an even bigger relief for investors that weren't rewarded for owning the stock during an otherwise impressive quarter.

Tuesday, April 29, 2014

3 Ways To Benefit From Deals In Precious Metals

Related ABX Market Wrap For April 28: Apple Hits New 52-Week Highs In a Volatile Start To the Trading Week Newmont Responds to Barrick Press Release, Confirms Companies Had Settle Prelim Draft Summary of Indicative Terms M&A Activity Boosts U.S. Stock Futures (Fox Business)

A recent article in The Wall Street Journal reported on a possible merger between Barrick Gold (NYSE: ABX) and Newmont Mining Corp (NYSE: NEM), two of the biggest gold mining companies in the world.

The sector is certainly ripe for consolidation, as asset values are very low along with the cost of capital. For investors, here are three ways to profit from deals in gold and silver entities.

As the possible deal between deal Barrick Gold and Newmont Mining indicates, there are gains to be made with the biggest and the best.

Even though Barrick Gold and Newmont Mining are blue chips, the prices are tempting. Barrick Gold is around $17.60 a share, with the Wall Street analyst price target being $20.56 over the next year. Newmont Mining has jumped more than eight percent in recent market action, but it is off over 17 percent for the last year.

Related: 3 Ways To Profit From Merger Activity In The Pharmaceutical Sector

The exchange traded funds are excellent financial vehicles for profiting from deals in gold and silver.

SPDR Gold Shares (NYSE: GLD), the exchange traded fund for gold, is up nearly seven percent for 2014. iShares Silver Trust (NYSE: SLV), the exchange traded fund for silver, does not have the following of SPDR Gold Shares. As a result, it is off for the last week, month, quarter, six months, and year of market action. Due to the nature of the sector, gold will draw the bulk of the investor attention -- keeping with its traditional role as a safe harbor asset.

That greatly favors SPDR Gold Shares over iShares Silver Trust as an investment tool.

Small caps in natural resources with promising holdings are always attractive takeover targets, as detailed in a previous article in Benzinga. That is especially so for those with valuable assets such as Premium Exploration (OTC: PMMEF), a gold company operating in Idaho. Due to tension abroad, investors are willing to pay more for North American gold and silver firms such as Premium Exploration.

The Wall Street Journal reports that talks are still continuing between Newmont Mining and Barrick Gold. That demonstrates there is plenty of dealmaking left in the sector. As such, investors have a myriad of ways to profit from exchange traded funds such as SPDR Gold Shares, to promising small caps such as Premium Exploration.

Posted-In: Gold metals and mining precious metals SilverLong Ideas News Sector ETFs Emerging Markets Wall Street Journal Rumors Small Cap Analysis Commodities M&A Markets Media Trading Ideas ETFs Best of Benzinga

Most Popular Market Wrap For April 28: Apple Hits New 52-Week Highs In a Volatile Start To the Trading Week Apple Issuing More Bonds to Fund Increased Buyback Amazon's 'Big Spender' Act Not Impressing Investors Financials, Futures Move Lower Following News BofA Has Suspended 2014 Capital Plan Earnings Scheduled For April 29, 2014 UPDATE: Organovo Reports Pre-Release Availability of 3D Liver Contract Services Related Articles (GLD + ABX) 3 Ways To Benefit From Deals In Precious Metals Market Wrap For April 28: Apple Hits New 52-Week Highs In a Volatile Start To the Trading Week Newmont Responds to Barrick Press Release, Confirms Companies Had Settle Prelim Draft Summary of Indicative Terms Mid-Day Market Update: NASDAQ Drops 0.8%; Susser Shares Surge On Acquisition News Mid-Morning Market Update: Markets Open Higher; Forest Labs To Acquire Furiex For $1.1B In Cash Morning Market Losers Around the Web, We're Loving... Consumer Confidence Falters in April

Monday, April 28, 2014

How Should An 18-Year-Old Get Started In Investing?

Answer by Cinjon Resnick on Quora,

I was in a similar position once. Here's what I did:

Read The Intelligent Investor Investor by Benjamin Graham. This is your go to and will give you a good frame for how to think about investing (like an owner) and how to think about the markets. Graham is considered the grandfather of value investing and was Buffett's direct teacher. Try to get the one with the Zweig commentary because he updated it for today's environment.

Then read Margin of Safety by Seth Klarman, who has done incredibly well leading the Baupost fund since the late 80s. It expounds mostly the same ideas because Klarman follows Graham's teachings but also has his own touch that is quite different from anyone else. It's very hard to reverse engineer Klarman's plays. This book is also great because of its near current examples (early 90s).

Then one more book and that's You Can Be A Stock Market Genius by Joel Greenblatt. Terrible name but great book because of all of the special situations (these aren't unique, but are a way of identifying specific investment plays like spin-offs or mergers) it details and how to take advantage of them/what to look for.

Ok, that's three books which should take ~2-3 months. After that, start investing in things you know and understand. If you don't understand anything, then start researching.

But while doing it, the best education you can get is to be reading the Buffett Partnership Letters and then the Berkshire Hathaway Berkshire Hathaway Annual Letters. These span 40+ years and are a goldmine of investing and business education. I strongly encourage this last step, especially for people new to investing and those without the time to focus on anything but their industry of choice.

…

Answer by Milo Beckman, Student at Harvard University, on Quora,

The correct answer is to put about 90% of your money into the Vanguard S&P 500 ETF and about 10% in 10-year U.S. treasury bonds.

Here's why:

Saturday, April 26, 2014

Why iRobot Shares Short-Circuited

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of iRobot (NASDAQ: IRBT ) were falling apart today, down as much as 15% following disappointing guidance in its earnings report.

So what: The maker of the Roomba and other automated machines said that adjusted earnings per share came in at $0.21, beating estimates of $0.19, while it also topped revenue projections of $128.9 million as sales grew 17% to $130.4 million. Management credited growth in the Home Robot segment for the strong quarter and noted expansion in Brazil and a new partnership with Cisco Systems called Enterprise Telepresence. Still, analysts seemed to be disappointed by current quarter EPS guidance of $0.20-$0.25, below estimates at $0.27.

Now what: Wall Street often punishes companies for delivering poor guidance after beating estimates, and this is no exception. iRobot did raise the lower end of its full-year EPS range to $0.88 from $0.80, because of a one-time tax benefit, with the high end at $1.00, but that's only enough to make the analyst consensus of $0.94 the midpoint. I'd tend to ignore today's drop in the stock as this was a strong quarter, and the pullback seems to be mostly valuation-based as the P/E is still lofty at 37. Long-term investors should be satisfied with a report like this.

iRobot isn't the only company making waves in robotics. There's a disruptive invention currently penetrating the marketplace that the economist has compared to the steam engine and the printing press. Business Insider says it's "the next trillion-dollar industry." And everyone from BMW to Nike to the U.S. Air Force is already using it every day. Watch The Motley Fool's shocking video presentation today to discover the garage gadget that's putting an end to the Made In China era... and learn the investing strategy we've used to double our money on these three stocks. Click here to watch now!

Buffalo Wild Wings Leading on Tech Innovation

Buffalo Wild Wings Inc. (BWLD) owns, operates and franchises a chain of more than 900 casual dining restaurants across the United States and Canada. Buffalo Wild Wings has a strong brand prospect and is considered one of the most popular casual dining restaurant chains – with a dine and watch concept and 40 television sets per outlet. The company offers its chicken wings, hamburgers, sandwiches, salads and beers until 2am. Not only sports fan love Buffalo but also families which enjoy taking their children to restaurants where their children can watch TV and play videogames.

Its franchising system allows the company to safeward earnings. With more than 50% of its business franchised, the company reduces capital requirements and facilitates EPS growth and ROE expansion. Moreover, it also allows increasing free cash flow, which permits Buffalo to reinvest in brand recognition, and shareholder return.

Despite the unstable economic scenario, the company has managed to keep posting positive results, being well position within the market as to sustain its same-stores sales growth. Fourth quarter 2013 earnings of $1.10 were above estimations, increasing 23.6% versus 2012, driven by an increase in the top line and lower costs of sales. The new menu launches and marketing strategies are likely to continue boosting the company's sales, and the recent association with NCAA will further increases visibility.

Innovations

Buffalo Wild Wings has been investing in new product development. New menu items such as rib slammers, flat breads and Sam Adams Rebel IPA, the company's new beer, Buffalo, has been able to enhance its menu and attract more customers. It has also successfully changed its traditional way of menu serving chicken wings, with new weight based portions. These efforts have resulted on improved margins and more stable earnings.

Another initiative introduced in the guest experience business model is the installment of tablets in all of its restaurants to provide exclusive social gaming opportunities. Teaming up with NTN Buzztime Inc. (NTN) Buffalo uses Beond tablets to allow guests order food and drinks, play games, and pay their bill. Also, the three-year collaboration with National Collegiate Athletic Association (NCAA) has enabled the company to be an authorized hangout for the NCAA March Madness sports series, increasing visibility as a brand and attracting more customers to their outlets. These efforts, along with more intense advertising initiatives, new point-of-sales programs, improved supply chain and remodeling of its restaurants are expected to boost sales, and strengthen the business in the long run. Buffalo Wild Wings has selected the NCR Corp. (NCR) Aloha Online Ordering solution for its locations to help drive its takeout ordering business. The NCR technology will enable Buffalo to handle both on and off-premise transactions within one system.

Expansion

The company has also been focusing on store opening. Despite the macroeconomic uncertainty, Buffalo has kept with this initiative, and has witnessed unit growth of nearly 11.6% in 2011, 9.1% in 2012 and 10.9% in 2013. Moreover, associations are on track, and the company has acquired a minority stake in PizzaRev, launching in 2012 PizzaRev fast-casual pizza restaurant, with a Craft Your Own initiative. The company plans to open two more PizzaRev units in Minneapolis in 2014 and a few more outlets by the end of 2014. Another partnership on track is with Pepsico Inc. (PEP) and Dr. Pepper Snapple Group, Inc. (DPS) to serve drinks across all its locations. Through these partnerships, Buffalo Wild Wings is developing new sauces and salad dressings for the restaurant chain, like the Mountain Dew-flavored salad dressing and Doritos-flavored wing sauce. These partnerships are expected to increase visibility and improve guest traffic as well.

Economic setbacks

Macroeconomic uncertainties are always threatening restaurant industry companies, as the budget cuts, the high tax rates and tightened credit availability hurt consumer discretionary spending. In addition, the strong competition amid this industry intensifies margin pressures. Still, Buffalo Wild Wings margins are improving given their new initiatives. But the increased expenses and investments to fuel long-term growth might hurt profits in the near term.

The company's revenue missed analysts' estimates last quarter, but its traffic remained very strong. Top line increased year over year, and total revenue increased 12.4%, despite missing estimations of $345.0. Still, the growth of Buffalo Wild Wings has been outstanding: from 553 locations to more than 1,000 restaurants today, for a 12% compounded annual growth rate in locations.

Bottom line

The company has recently been developing numerous initiatives to attract more customers and enhance its brand furthermore. Improving its facilities, introducing technology and with different marketing campaigns, Buffalo is likely to keep in a highly competitive position and boost its sales. Buffalo Wild Wings' comparable-store sales increased 5% and its profit grew an astonishing 25%.

Disclosure: Damian Illia holds no position in any of the stocks mentioned

About the author:Damian IlliaA fundamental analyst at Lonetreeanalytics.com constantly looking for value and income investments.

Visit Damian Illia's Website

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Thursday, April 24, 2014

United Loses $609 Million in 1Q; Fares Don't Cover Costs

United Airlines Reports Quarterly Profit Of 140 Million Justin Sullivan/Getty Images United Airlines is the one U.S. carrier that can't seem to get its act together. While all the other major airlines made money in the first quarter, United lost $609 million during the first three months of this year. United attributed $200 million of its loss to the "historic severe" winter weather that impacted much of the U.S. this past winter. But by comparison, Delta Air Lines (DAL) made $213 million in the same quarter while dealing with the same ice and snow storms. Chicago-based United (UAL) is still struggling to combine systems and see financial benefits following its 2010 merger with Continental Airlines. In the first quarter, its cost for each mile passengers flew rose 1 percent but its related revenue fell 2 percent. It simply isn't able to charge high enough airfares. United lost $1.66 a share, worse than the $1.26 a share it lost during the same period last year. Excluding special items, the loss was $1.33 a share, barely beating the $1.35 loss expected by Wall Street analysts surveyed by FactSet. United's revenue slipped 0.3 percent to $8.7 billion, just short of the $8.71 billion Wall Street analysts had expected. The one bright spot for United was that it paid less for fuel: $3.18 a gallon, down from $3.28 during last year's first quarter. Considering that the airline used 916 million gallons during the period, that added up to $133 million in savings. "While we are not pleased with our first-quarter financial results, we are building a strong foundation that will result in improved financial performance," John Rainey, chief financial officer for United Continental Holdings, Inc., said in a statement. United also lost $21 million during the quarter due to an exchange rate loss in Venezuela. Approximately $100 million of the company's unrestricted cash balance was held as Venezuelan bolivars as of March 31, 2014. All international airlines flying there have struggled with a quickly devaluing currency and have billions of dollars tied up in bolivars that can't be quickly converted because of Venezuelan currency controls.

Wednesday, April 23, 2014

New website to link nation's veterans, employers

FORT CAMPBELL, Ky. — First Lady Michelle Obama announced a new online tool Wednesday to help military veterans connect with employers and said some of the nation's biggest companies are expanding the number of veterans they hire.

In a speech that was the kind of pep talk you would expect for new college graduates, the first lady offered a twist — the notion that soldiers who have seen combat in Iraq and Afghanistan probably can handle a job interview at Xerox or UPS.

"Today we need you to start thinking and talking about yourselves for a change," she said. "Don't be afraid to brag a little bit about yourselves."

Obama announced the new private-sector commitments to hire veterans, including Capital One Bank's pledge to hire 55,000 veterans and their spouses, a doubling of UPS' commitment from 25,000 to 50,000 jobs and 10,000 new jobs for veterans at Xerox.

STORY: Recent veterans struggle to find jobs
STORY: States launch programs to help veterans find jobs

"Today, more than 100 companies have come here for one purpose — to hire you," she said at a jobs summit here for transitioning veterans. "We've got your backs."

She urged veterans not to be shy about their experiences and what they can bring to the job.

"If you want a job, you can't be modest about your qualifications," Obama said. "Anyone out there would be lucky to have you on their team."

I guarantee you: They'll be the best employees you have.

The Veterans Employment Center, available at www.ebenefits.va.gov, allows veterans to see the benefits they've accumulated during their service, post a resume and learn what kinds of jobs they might be able to do based on their skills.

Roughly 700,000 to 800,000 military veterans are in the job market at any given time, said Rosye Cloud, senior adviser for veteran employment with the U.S. Department of Veterans Affairs. That number includes about 240,000 people who have become veterans since the Sept. 11, 2001, terrorist attacks.

! Nationwide, 172,000 post-9/11 veterans were unemployed in March, down from 207,000 the year previous, according to the Bureau of Labor Statistics. That translates to a 6.9% jobless rate, compared with 9.2% a year ago. The overall national rate was 6.7%.

The new web tool is the first of its kind from the federal government, Cloud said.

"As my husband said, 'You fought for us; you shouldn't have to fight for a job,' " the first lady said.

Earlier at the summit, Maj. Gen. James C. McConville said the Army has a responsibility to make sure its veterans can move smoothly into civilian life with good jobs.

Michelle Obama takes part in a soldier's selfie.

Michelle Obama has her photo made with a soldier after speaking April 23, 2014, at veterans job summit at Fort Campbell, Ky.(Photo: Michael Clevenger, The (Louisville, Ky.) Courier-Journal)

The commanding general of the 101st Airborne Division at Fort Campbell said his father, also a veteran, was able to "send all his kids to college and live the American dream" thanks to the G.I. Bill and steady employment.

"And that's what we owe our veterans today," McConville said.

Sgt. Clay Loymendy, 24, of Riverside, Calif., has been stationed at Fort Campbell for more than two years. He said he'll probably go to a technical school soon so he can start working in wind turbine production or as a cell tower technician.

Brig. Gen. David K. MacEwen, adjutant general of the Army, said employers should know that veterans are fit and drug free and will show up to work on time.

"I guarantee you: They'll be the best employees you have," MacEwen said.

Speakers at the forum Wednesday spoke of a period of major changes for soldiers, veterans, their families and the communities they! live in ! as the war winds down and the number of troops shrinks.

Veterans sometimes have to change their mindset when they leave the battlefield for the job market, MacEwen said.

Soldiers are accustomed to talking in terms of "we" and what their team has accomplished, but they have to make a transition to "I" and individual achievements, he said.

Medal of Honor recipient Dakota Meyer speaks at the Ft. Campbell Veterans Jobs Summit and Career Forum. April 23, 2014(Photo: Michael Clevenger, The (Louisville, Ky.) Courier-Journal)

Eric Eversole, executive director of the U.S. Chamber of Commerce Foundation's Hiring Our Heroes program, said too many veterans don't know how to make a "30-second elevator pitch" about themselves and their skills.

Veterans need to put their military service front and center on their resumes, he said.

Others at the summit included Marine Sgt. Dakota Meyer. Meyer, a Medal of Honor recipient for bravery in saving members of his team in Afghanistan in 2009, said young veterans of the post-9/11 wars in Iraq and Afghanistan have no good reason to be unemployed.

Meyer received a standing ovation from the 101st Airborne Division. But speaking from personal experience, he said not a lot of job descriptions ask for former snipers.

Meyer, who is working with the Chamber of Commerce Foundation in its outreach to veterans, said the government's launch of its integrated jobs website will help bridge that gap, translating military skills to civilian terms.

He said less than 1% of this generation has carried the burden of America's longest war. That means the civilian and military worlds have a difficult time understanding each other.

"It's something as small as in the! military! we call it a mission and in the corporate world they call it a project," he said.

Contributing: Philip Grey, The (Clarksville, Tenn.) Leaf-Chronicle; Duane Gang, The Tennessean; and The Associated Press

Fort Campbell soldiers listen to panels discussing jobs after the military at an April 23, 2014, career forum.(Photo: Michael Clevenger, The (Louisville, Ky.) Courier-Journal)

Consumer Electronics: Where the Growth Is

While consumer confidence in technology spending is on the rise in the past few weeks, it's down year-over-year since last June. That's according to Shawn DuBravac, chief economist of the Consumer Electronics Association, or CEA.

DuBravac presented his findings at the recent CEA Research Summit at CE Week in New York City. If you're wondering about the greatest growth in consumer electronics, look no further than the tablets and smartphones produced by Apple (NASDAQ: AAPL ) , along with its many Android competitors. Tablets sales are expected to continue to surge, making up about 80% of all computer sales by 2016.

Motley Fool analyst Rex Moore spoke with DuBravac at CE Week, and has more on the state of the consumer electronics sector in the video below.

Want to get in on the smartphone phenomenon? Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits NO MATTER WHO ultimately wins the smartphone war. To find out what it is, click here to access The Motley Fool's latest free report: "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further..."

Tuesday, April 22, 2014

Stocks Hitting 52-Week Highs

Related IIN Morning Market Movers Morning Market Losers Related AXAS Abraxas Petroleum Corp. (AXAS) in Focus: Stock Moves 6.4% Higher - Tale of the Tape Will Noble Energy Disappoint This Quarter? - Analyst Blog

Intricon (NASDAQ: IIN) shares gained 33.98% to touch a new 52-week high of $6.23 after the company reported Q1 results.

Abraxas Petroleum (NASDAQ: AXAS) shares gained 2.19% to reach a new 52-week high of $5.60. Abraxas Petroleum shares have jumped 154.88% over the past 52 weeks, while the S&P 500 index has gained 18.57% in the same period.

Harley-Davidson (NYSE: HOG) shares touched a new 52-week high of $72.56 after the company reported a rise in its first-quarter profit.

Allergan (NYSE: AGN) shares reached a new 52-week high of $164.46 on buyout offer from Valeant Pharmaceuticals International (NYSE: VRX).

Posted-In: 52-Week HighsNews Intraday Update Markets Movers

Most Popular Earnings Expectations For The Week Of April 21: Apple, Facebook, GM And More A Look At 2014's Leading Cannabis Stocks Sears And Others Insiders Have Been Buying Watching Tech, Alibaba IPO, With Ironfire's Eric Jackson Wells Fargo Securities Sees Mixed Factors for Apple Earnings Scheduled For April 22, 2014 Related Articles (AXAS + AGN) Stocks Hitting 52-Week Highs Will Allergan (AGN) Continue to Surge Higher? - Tale of the Tape Abraxas Petroleum Corp. (AXAS) in Focus: Stock Moves 6.4% Higher - Tale of the Tape Morning Market Movers Sterne Agee Expects Allergan to Resist Hostile Takeover by Valeant Benzinga's Top #PreMarket Gainers Around the Web, We're Loving... Noble Energy to Promote COO Stover to CEO as Davidson Retires Lightspeed Trading Prese

Monday, April 21, 2014

Why Itâ€™s Time to Buy Apple

Once the quintessential glamour stock, Apple (AAPL) has been anything but glamorous since hitting its record high price in 2012. Excluding enhancements to existing products, the company hasn't unveiled anything truly new since it launched the iPad in April 2010. With the death of visionary CEO Steve Jobs 18 months later, it's no wonder investors worry that Apple is no longer a growth company. We think, though, that Wall Street has gotten too pessimistic and that this is a good time to bite into Apple's stock.

See Also: A Fund for Tech Stocks That Pay Juicy Dividends

The performance of both the company and the stock tell the story of Apple's fall from grace. The share price peaked in September 2012 at $705, representing a more than 100-fold increase since 2003. But over the next eight months, as investors began to sense a slowdown in growth, the shares dropped 45%, to $385.

And although the stock has recovered to $525, it's clear that investors were onto something. Earnings per share skyrocketed from 10 cents in 2003 to $44.15 in 2012, but since the fourth calendar quarter of 2012, Apple's year-over-year profits have fallen for four straight quarters. If analysts are right, Apple will break out of the rut, ever so slightly, when it reports results for the January-March quarter on April 23. On average, they see Apple earning $10.17 per share, up from $10.09 in the same period a year earlier.

Apple's stock is certainly cheap, which may explain why it held up well during the recent high-tech pullback. Apple trades for 12 times estimated earnings for calendar year 2014, compared with 15 and 20, respectively, for such rivals as Microsoft (MSFT) and Google (GOOG). Standard & Poor's 500-stock index sells for 16 times estimated profits. "There are no longer plenty of bargains out there, but Apple is one of them," says David Rolfe, manager of RiverPark/Wedgewood (RWGFX), which has 9.1% of its assets in Apple. Rolfe believes the company will generate double-digit-percentage earnings growth over the next few years. He also expects Apple to raise its annual dividend, currently $12.20 per share. The stock yields 2.3%.

Paying more to shareholders won't put much strain on Apple's coffers. The company holds an unfathomable amount of cash and investments—nearly $160 billion. Another way to reward investors is to repurchase shares, and Apple is doing that with a vengeance. It has authorized buybacks totaling $100 billion through the end of 2015. Josh Spencer, manager of T. Rowe Price Global Technology (PRGTX), says the immensity of the buyback program suggests that Apple officials think the stock is a bargain. "Apple has gotten so aggressive on the buybacks that it seems like people at the company know something that we do not," he says. "That is a clue you just can't ignore."

But cheapness alone may not be enough to bring back Apple's glory days. Investors want to see a resumption of growth—and more than the piddling gains expected for the January-March quarter.

One way to generate growth is to introduce new products. Apple, which in the past year hired a top designer from Nike and the chief executive of fashion house Yves Saint Laurent, is expected to soon unveil an iWatch or some other form of wearable tech to rival Samsung's Galaxy Gear watch, rolled out last fall.

And although you can argue whether updates for existing gizmos qualify as new products, you can't underestimate their importance to Apple's results. On tap this fall is a new large-screen version of the iPhone, which generated more than half of the $171 billion in revenue Apple collected in the fiscal year that ended last September 30. Other products and updates may also be on the horizon. Apple spent $4.5 billion on research and development in the 2013 fiscal year, up 32% from the previous year.

Apple could also boost business by partnering with other companies. It is in talks with cable-giant Comcast (CMCSA) about teaming up on a streaming-television service that would use an Apple set-top box to show programming stored in the cloud. If the deal goes through, subscribers would be able to use Comcast's cable systems to bypass congestion on the Web. Apple CEO Tim Cook has said that the Apple TV, which brought in $1 billion in sales in fiscal year 2013, is no longer a hobby but rather a serious line of business for the company.

Apple may also have a hand in the car of the future. Elon Musk, CEO of electric carmaker Tesla Motors (TSLA), is reported to have met with an Apple executive, fueling speculation about a partnership between the two companies. Apple announced in March that "CarPlay"—an integrated system for letting you use your iPhone through a car dashboard—will be available this year on models from five carmakers, including Honda Motors and Mercedes-Benz.

With its huge cash stash, Apple should have no trouble expanding by buying technology companies. One of its best-known deals was the purchase in 2010 of Siri, the firm behind the virtual assistant first introduced in the iPhone 4s. In 2012, Apple bought AuthenTec, whose fingerprint sensors are used in the iPhone 5s. The company has quietly continued its buying spree, snagging app developer SnappyLabs and app testing company Burstly earlier this year. Although these deals aren't of the same magnitude as the planned $19 billion purchase of WhatsApp by Facebook (FB), they could pay off down the road.

Finally, Apple has room to grow in both emerging and established markets in Asia. The percentage of sales coming from China and Japan has increased each year for the past three years. When Apple introduced the lower-cost iPhone 5c last fall, it made it clear that the company was serious about gaining share in emerging nations with growing numbers of people joining the middle class.

The bottom line is that Apple's bottom line is poised for a rebound, and that bounce could begin with the release of first-quarter results. Apple's stock won't rise 100-fold over the next ten years, but people who buy now are not likely to be disappointed.

Sunday, April 20, 2014

Learning from the Past, and the Next Big Trend

"History is just one damned thing after another." -- Arnold Toynbee

No one has any idea what the economy is going to do in the future, but you can be reasonably assured of two things: Things can change very fast, and what you think sounds preposterous today can happen tomorrow.

Take this quote, from President Clinton's 2000 State of the Union address:

We are fortunate to be alive at this moment in history. Never before has our nation enjoyed, at once, so much prosperity and social progress with so little internal crisis and so few external threats. Never before have we had such a blessed opportunity -- and, therefore, such a profound obligation -- to build the more perfect union of our founders' dreams.

We begin the new century with over 20 million new jobs; the fastest economic growth in more than 30 years; the lowest unemployment rates in 30 years; the lowest poverty rates in 20 years; the lowest African-American and Hispanic unemployment rates on record; the first back-to-back budget surpluses in 42 years. And next month, America will achieve the longest period of economic growth in our entire history.

We have built a new economy. And our economic revolution has been matched by a revival of the American spirit: crime down by 20%, to its lowest level in 25 years; teen births down seven years in a row; adoptions up by 30%; welfare rolls cut in half to their lowest levels in 30 years.

My fellow Americans, the state of our union is the strongest it has ever been.

This wasn't hyperbole. But do you know what happened soon after this speech? The stock market crashed, the unemployment rate nearly doubled, poverty surged, terrorists attacked, we entered two wars, record surpluses became record deficits, and the median American household suffered its worst decade of income growth on record.

Now take this quote, from President Obama's 2010 State of the Union:

One year ago, I took office amid two wars, an economy rocked by a severe recession, a financial system on the verge of collapse, and a government deeply in debt. Experts from across the political spectrum warned that if we did not act, we might face a second depression. ... One in 10 Americans still cannot find work. Many businesses have shuttered. Home values have declined. Small towns and rural communities have been hit especially hard. And for those who'd already known poverty, life has become that much harder. This recession has also compounded the burdens that America's families have been dealing with for decades -- the burden of working harder and longer for less; of being unable to save enough to retire or help kids with college.

This, too, wasn't hyperbole. But since this speech the stock market has rallied 57%, the unemployment rate dropped from 9.8% to 7.6%, home prices are up, one of those wars ended, the federal deficit was cut in half, and households now have the lowest debt payments relative to incomes in at least 30 years.

Things change. Fast.

Former Treasury Secretary Larry Summers has a saying: "A good rule of thumb for many things in life holds that things take longer to happen than you think they will, and then happen faster than you thought they could." And not only do most of us never see the change coming, but what actually happens in hindsight would often seem downright absurd if you told it to someone in the past.

How do we apply this to the future? History makes it clear that when sentiment and statistics wander far off from their normal path, things are due for a change. It's simply reversion to the mean, or as investor Dean Williams once put it, "Something usually happens to keep both good news and bad news from going on forever."

Keep that in mind, and take these recent headlines:

"Why Americans are Miserable and Broke" "The Death of the American Consumer" "Median wealth of U.S. households lowest since 1969" "Strike Three! The American Consumer Is Out" "More Americans Think Economy Will Never Recover" "Broke Consumers Hit Credit Cards for a Few Last Pennies"

Most of these headlines are accurate. American households are in terrible shape. Incomes are down, confidence is down, wealth is down, and unless you have a good degree from a good school, the jobs market is a joke.

However, not despite that gloom, but because of it, I'm optimistic about the U.S. consumer.

There's more to it than hope. Household debt has plunged. Combined with low interest rates, households will pay a staggering half a trillion dollars less in debt payments this year than they did in 2007. That offers flexibility and opportunity in household budgets for the first time in years. After declining by nearly four million, the population of Americans aged 30 to 44 -- a heavy-spending bunch -- is about to start rising again for the first time in a decade. Wages have been cut so low that now it's backfiring on businesses. Take this recent story from The New York Times about Wal-Mart (NYSE: WMT ) :

Walmart, the nation's largest retailer and grocer, has cut so many employees that it no longer has enough workers to stock its shelves properly, according to some employees and industry analysts. Internal notes from a March meeting of top Walmart managers show the company grappling with low customer confidence in its produce and poor quality. "Lose Trust," reads one note, "Don't have items they are looking for -- can't find it."

You can't run an economy like this indefinitely. It eventually balances itself out. As Williams might say, something happens to keep bad news from going on forever.

I'm an optimist. As I've explained, that doesn't mean I think bad things won't happen. It means that over long periods of time, the odds are in the favor of those who think things will generally get better. When something like "the death of the American consumer" becomes mainstream, the odds of things getting better go up. Things change fast. And we're due for a change.

If you're interested in this trend, I've put together an in-depth report on the revival of the American consumer, including two recommendations of companies that stand to benefit. Click here to grab a copy.

link

Show Me the Money, Knoll

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Knoll (NYSE: KNL ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Knoll generated $60.6 million cash while it booked net income of $48.8 million. That means it turned 6.8% of its revenue into FCF. That sounds OK.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Knoll look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With 16.6% of operating cash flow coming from questionable sources, Knoll investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 13.1% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 25.0% of cash from operations. Knoll investors may also want to keep an eye on accounts receivable, because the TTM change is 2.1 times greater than the average swing over the past 5 fiscal years.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Can your retirement portfolio provide you with enough income to last? You'll need more than Knoll. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add Knoll to My Watchlist.

Saturday, April 19, 2014

Is Buying Accenture Stock a Smart Health Care Play?

Health care is hot these days. Hospital stocks are sizzling. Pharmaceutical shares are soaring. But there's another way to ride the health care wave. My recommendation is to consider buying Accenture (NYSE: ACN ) stock as a health care investment. Here's why.

Accent on health care
Sure -- Accenture is a global consulting firm with its fingers in many different industries. Health care just might be the strongest niche for the company, although a cursory glance at Accenture's revenue probably doesn't give that impression.

Source: Company 10Q filing.

In terms of revenue, the company's Health & Public Services business segment stands as the smallest. Consider, however, that over the most recently reported six-month period, the segment's revenue growth rate of 12% was by far the strongest. Financial Services and Products revenue increased by 7% and 4%, respectively. However, Accenture's other two major segments actually lost revenue. If these growth rates persist, Health & Public Services will go from the company's smallest line of business to its biggest by the end of the decade.

What's more is that the profitability of Health & Public Services is also growing more quickly than any other area. During the six months ended on Feb. 29, 2012, the segment's operating margin stood at 10%. Fast-forward to 2013 and that margin jumped to 14%. That's a huge shift in the right direction.

Interestingly, Accenture is accomplishing all of this growth with relatively few staff in its health care business. The company reports around 15,000 employees focused on health care out of its total of 257,000 employees worldwide. In other words, less than 6% of its headcount generates 17% of its net revenue. Not bad.

Medical melee
Accenture doesn't have the health care consulting pie all to itself, of course. Several other major players vie for a part of the market.

IBM (NYSE: IBM ) probably ranks as the most significant publicly traded rival to Accenture in the health care field. While Big Blue doesn't report revenue for health care, the industry is an important area of focus for the company. In 2011, IBM counted more than 8,000 staff dedicated to health care. That number is likely a good bit higher now.

Like Accenture, IBM's customers include health care providers and health plans. One technology where IBM competes especially strongly is data analytics. The company also has pioneered use of artificial intelligence applied to health care with its Watson.

Another smaller competitor with a foothold in health care is Cognizant (NASDAQ: CTSH ) . In 2012, Cognizant generated $1.9 billion from its health care segment, representing more than 26% of its total revenue. That figure also reflects a 19% jump compared to the prior year.

Cognizant has beefed up its presence in the health care market as well. In late 2012, the firm acquired Medicall, which provides outsourced clinical operations. This purchase brought more than 600 U.S.-licensed nurses based in the Philippines into the Cognizant fold.

Accenture appears to be in good shape to hold its own in the fight for market share. The company continues to see solid growth both in consulting and outsourcing across multiple geographic regions.

Smart pick?
There are lots of great health care investment alternatives available. The nice thing about buying Accenture stock is that it allows shareholders to profit from gains in nearly every part of the industry -- payers, providers, government, and life science organizations.

Accenture stock has performed quite well recently. Shares are up 17% year-to-date and 38% over the past 12 months. Despite the solid run-up, the stock's price-to-earnings multiple still falls right in line with its range over the past three years.

Analysts project earnings growth for Accenture over the next five years will be even better than the past five years. I suspect they're right. The company's large number of professionals with industry expertise should help it keep gaining additional customers worldwide. All factors considered, buying Accenture stock looks to be a pretty smart health care play.

While health care as an industry is hot right now, health care reform continues to generate heat as well. The Affordable Care Act, known commonly as Obamacare, remains a polarizing subject. Obamacare will undoubtedly have far-reaching effects. The Motley Fool's new free report, "Everything You Need to Know About Obamacare," lets you know how your health insurance, your taxes, and your portfolio will be affected. Click here to read more.

Thursday, April 17, 2014

Jim Cramer Breaks Down Google, IBM, Goldman Sachs and Chipotle's Confusing Earnings

NEW YORK (TheStreet) -- TheStreet's Jim Cramer discusses the "confusing" earnings of Chipotle (CMG), Google (GOOG), IBM (IBM) and Goldman Sachs (GS).

Firstly, he says Chipotle reported "just OK" earnings, but this is a "revenue story," as the company reported comparable-store sales growth of 13%. Cramer was looking for 9% growth, calls 13% "extraordinary" and says investors should buy Chipotle on any weakness.

IBM missed on earnings and revenue but Cramer would still buy it because "it is a second-half story."

Cramer also does not want to back away from Google at all because it sells at 18 times earnings with a 19% growth rate. He reasons portfolio managers will always ultimately gravitate to companies that offer that kind of growth rate for that kind of multiple. He points out it does not happen immediately, though, and people must go through models. Cramer believes both IBM and Google will both be trading higher in two weeks. Finally, Cramer calls Goldman Sachs "impenetrable" but says the key takeaway is that it trades at slightly more than one times book value. This means if the company closed and gave cash back to investors, then the investors would more or less break even. Must Watch: Jim Cramer on Chipotle, IBM, Google, and Goldman Sachs Earnings STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. ---------- Separately, TheStreet Ratings team rates CHIPOTLE MEXICAN GRILL INC as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CHIPOTLE MEXICAN GRILL INC (CMG) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:
The revenue growth came in higher than the industry average of 3.8%. Since the same quarter one year prior, revenues rose by 20.7%. Growth in the company's revenue appears to have helped boost the earnings per share. Powered by its strong earnings growth of 29.74% and other important driving factors, this stock has surged by 55.43% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year. CHIPOTLE MEXICAN GRILL INC has improved earnings per share by 29.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CHIPOTLE MEXICAN GRILL INC increased its bottom line by earning $10.46 versus $8.75 in the prior year. This year, the market expects an improvement in earnings ($13.00 versus $10.46). The net income growth from the same quarter one year ago has significantly exceeded that of the Hotels, Restaurants & Leisure industry average, but is less than that of the S&P 500. The net income increased by 29.8% when compared to the same quarter one year prior, rising from $61.35 million to $79.62 million. Net operating cash flow has increased to $140.07 million or 11.13% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -31.17%. You can view the full analysis from the report here: CMG Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Stock quotes in this article: CMG, IBM, GOOG, GOOGL, GS

Separately, TheStreet Ratings team rates INTL BUSINESS MACHINES CORP as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate INTL BUSINESS MACHINES CORP (IBM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, expanding profit margins, good cash flow from operations, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:
INTL BUSINESS MACHINES CORP has improved earnings per share by 11.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, INTL BUSINESS MACHINES CORP increased its bottom line by earning $15.02 versus $14.41 in the prior year. This year, the market expects an improvement in earnings ($17.96 versus $15.02). The gross profit margin for INTL BUSINESS MACHINES CORP is rather high; currently it is at 56.58%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 22.32% trails the industry average. Net operating cash flow has slightly increased to $6,528.00 million or 2.86% when compared to the same quarter last year. Despite an increase in cash flow, INTL BUSINESS MACHINES CORP's cash flow growth rate is still lower than the industry average growth rate of 15.13%. The net income growth from the same quarter one year ago has exceeded that of the IT Services industry average, but is less than that of the S&P 500. The net income increased by 6.0% when compared to the same quarter one year prior, going from $5,833.00 million to $6,184.00 million. Despite the weak revenue results, IBM has outperformed against the industry average of 20.1%. Since the same quarter one year prior, revenues slightly dropped by 5.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share. You can view the full analysis from the report here: IBM Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Stock quotes in this article: CMG, IBM, GOOG, GOOGL, GS

Separately, TheStreet Ratings team rates GOOGLE INC as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate GOOGLE INC (GOOGL) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:
GOOGL's revenue growth has slightly outpaced the industry average of 16.1%. Since the same quarter one year prior, revenues rose by 16.9%. Growth in the company's revenue appears to have helped boost the earnings per share. Although GOOGL's debt-to-equity ratio of 0.06 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 4.28, which clearly demonstrates the ability to cover short-term cash needs. Net operating cash flow has increased to $5,238.00 million or 12.18% when compared to the same quarter last year. In addition, GOOGLE INC has also modestly surpassed the industry average cash flow growth rate of 11.64%. The net income growth from the same quarter one year ago has exceeded that of the Internet Software & Services industry average, but is less than that of the S&P 500. The net income increased by 17.0% when compared to the same quarter one year prior, going from $2,886.00 million to $3,376.00 million. You can view the full analysis from the report here: GOOGL Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Stock quotes in this article: CMG, IBM, GOOG, GOOGL, GS

Separately, TheStreet Ratings team rates GOLDMAN SACHS GROUP INC as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate GOLDMAN SACHS GROUP INC (GS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:
The gross profit margin for GOLDMAN SACHS GROUP INC is rather high; currently it is at 52.26%. Regardless of GS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GS's net profit margin of 22.95% compares favorably to the industry average. Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.7%. Since the same quarter one year prior, revenues slightly dropped by 4.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share. The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Capital Markets industry and the overall market, GOLDMAN SACHS GROUP INC's return on equity is below that of both the industry average and the S&P 500. In its most recent trading session, GS has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year. You can view the full analysis from the report here: GS Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Stock quotes in this article: CMG, IBM, GOOG, GOOGL, GS Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Wednesday, April 16, 2014

Benefit from the Housing Resurgence with These Stocks

Home Depot (HD) and Lowe's (LOW) are good stocks for those who want to invest in home-improvement companies. So, investors should keep a close watch on the recovery of the housing market if they wish to benefit from these two companies.

According to Home Improvement Research Institute, the housing market surged to six-year highs last November, growing 22.7% year over year. In addition, sales of existing homes also increased over 10% as compared to last year. This was almost in line with HIRI's projection of 20% growth in housing and 9.8% increase in existing home sales for 2013. Looking forward, these numbers are expected to be around 30% and 9.3%, respectively, for 2014.

Let us see in detail what the prospects are for these firms and how will they will benefit investors.

Taking a Close Look

Home Depot is the largest American retailer for home improvement and construction products and services. Its recent results were better than consensus estimates. This was mainly driven by a rebound in the seasonal categories due to the recovering housing market in the U.S. Revenue increased on account of strong growth in comps, with an increase in earnings over last year.

A similar trend was seen for Lowe's, which reported significant growth. Backed by a solid performance across all its products, Lowe's earnings beat the estimates. Its gross profit increased 11.6% year over year. This resulted in an increase in earnings that were ahead of analysts' expectations.

In accordance with the projections from HIRI, Fitch has also predicted higher spending on home improvement in 2014. According to the National Association of Home Builders, housing market activity in 52 of approximately 350 metro areas in the U.S. has returned to or exceeded pre-recessionary levels.

All these facts indicate that the housing market is expected to grow in the future and this is a big opportunity for companies like Home Depot, Lowe's and Lumber Liquidators. Home Depot is the largest of the three in terms of store count, and it is concentrating less on expanding store count but improving store efficiency with the help of technology.

Road Ahead

To increase its presence in California market, Lowe's has acquired Orchard Supply Hardware, which is offering stiff competition to Home Depot. This will add 72 more stores to its existing fleet.

Looking forward, both companies would benefit from the booming housing industry. Home Depot, being the largest, has an edge and is better positioned to maximize its gains from the opportunity. Home Depot is working hard to attract as many customers during the holiday season. Keeping this in mind, it recently launched a mobile app for customers which will make shopping easier. Also, it is enhancing its website to make its online operations even better.

In addition, it is launching new products such as the Nest Protect smoke detector, a carbon monoxide detector, the Cree True White bulb, and many other products. It is also improvising its products to attract more customers.

Talking about Lumber Liquidators (LL), it caters to the hardwood flooring market. Currently at a P/E ratio of 30, it is very expensive as compared to both Lowe's and Home Depot. Home Depot has a P/E ratio of 20 while Lowe's is slightly more expensive at 22 times earnings. It will be better on the part of investors to look for either Home Depot or Lowe's, as they are comparably cheaper.

Making a Choice

Among all three, Home Depot looks the best in class. It is the cheapest and has a strong market position along with a wide store network. Looking at all these factors Home Depot looks to be a better investment option.

Home Depot (HD) and Lowe's (LOW) are good stocks for those who want to invest in home-improvement companies. So, investors should keep a close watch on the recovery of housing market if they wish to benefit from these two companies.

According to Home Improvement Research Institute, the housing market surged to six year highs last November, growing 22.7% year over year. In addition, sales of existing homes also increased over 10% as compared to last year. This was almost in line with HIRI's projection of 20% growth in housing and 9.8% increase in existing home sales for 2013. Looking forward, these numbers are expected to be around 30% and 9.3%, respectively, for 2014.

Let us see in detail what the prospects are for these firms and how will they will benefit investors.

Taking a Close Look

A similar trend was seen for both Lowe's, which reported significant growth. Backed by a solid performance across all its products, Lowe's earnings beat the estimates. Its gross profit increased 11.6% year over year. This resulted in an increase in earnings that were ahead of analysts' expectations.

All these facts indicate that the housing market is expected to grow in the future and this is a big opportunity for companies like Home Depot, Lowe's and Lumber Liquidators. Home Depot, is the largest of the three in terms of store count, and it is concentrating less on expanding store count but improving store efficiency with the help of technology.

Road Ahead

To increase its presence in California market, Lowe's has acquired Orchard Supply Hardware, which is offering stiff competition to Home Depot. This will add 72 more stores to its existing fleet.

Talking about Lumber Liquidators, it caters to the hardwood flooring market. Currently at a P/E ratio of 30, it is very expensive as compared to both Lowe's and Home Depot. Home Depot has a P/E ratio of 20 while Lowe's is slightly more expensive at 22 times earnings. It will be better on the part of investors to look for either Home Depot or Lowe's, as they are comparably cheaper.

Making a Choice

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United Airlines Now Selling "Subscriptions" for Better Seats, Free Baggage

United Continental (NYSE: UAL ) has a new program of all-you-can-eat fringe benefits for its customers.

The parent company of United Airlines announced Monday that it is now offering flyers the option of "subscribing" for benefits formerly ordered a la carte. For example:

For $499 per year, flyers can join the "Economy Plus" program offering "additional legroom to stretch out and relax" on "most" of the airline's nearly own aircraft, and also on nearly 180 United Express aircraft. For $349 per year (and up), flyers can subscribe for free checked baggage on their flights. Multiple conditions apply -- in particular, subscriptions cost more when bought for use in regions broader than just the continental United States and can range up to $799. Also, checking more than one bag costs $50 more, and the company may charge an "initiation fee" at some point in the future. United is permitting customers to buy yearlong memberships in United Club for $500 (and up).

United says that as of today, it is "the only U.S. carrier to offer an annual subscription for its extra-legroom economy seating and checked baggage service charges."

link

Tuesday, April 15, 2014

Best Casino Stocks To Watch For 2015

LOS ANGELES -- Nine auto dealers around the country have agreed to settlements with the Federal Trade Commission as part of an agency crackdown on deceptive auto dealer advertising.

The alleged misrepresentations varied from deceptive low payment deals to a sweepstakes for prizes that didn't exist when customers came to the dealership to collect them.

"We're always on the lookout for deception in the auto marketplace," said Jessica Rich, director of the FTC's Bureau of Consumer Protection, in prepared remarks for a press conference here to announce the crackdown. It's called "Operation Steer Clear."

The dealers named as agreeing to settle with the FTC included four in California: Casino Auto Sales of La Puente; Rainbow Auto Sales of South Gate; Honda of Hollywood and Norm Reeves Honda of Cerritos. Also named were Nissan of South Atlanta in Morrow, Ga.; Infiniti of Clarendon Hills, Ill.; Paramount Kia of Hickory, N.C. and Fowlerville Ford of Fowlerville, Mich.

Best Casino Stocks To Watch For 2015: Dover Downs Gaming & Entertainment Inc (DDE)

Dover Downs Gaming & Entertainment, Inc., incorporated in December of 2001, is a premier gaming and entertainment resorts. The Company�� operations consist of: Dover Downs Casino, a 165,000-square foot casino complex featuring table games, including craps, roulette and card games, such as blackjack, Spanish 21, baccarat, 3-card and pai gow poker, the latest in slot machine offerings, multi-player electronic table games, the Crown Royal poker room, a Race & Sports Book operation, the Dover Downs' Fire & Ice Lounge, the Festival Buffet, Doc Magrogan's Oyster House, Frankie's Italian restaurant, as well as several bars, restaurants and four retail outlets; Dover Downs Hotel and Conference Center, a 500 room AAA Four Diamond hotel with a full-service spa/salon, conference, banquet, ballroom and concert hall facilities, and Dover Downs Raceway, a harness racing track with pari-mutuel wagering on live and simulcast horse races. All of its operations are located at its entertainment complex in Dover. Its two wholly owned subsidiaries include Dover Downs, Inc. and Dover Downs Gaming Management Corp.

Dover Downs Casino

The Company's casino had approximately 2,539 slot machines as of December 31, 2011. It is open for business around the clock. During the year ended December 31, 2011, that the facility was visited by approximately 2.6 million patrons. Its slot machines range from penny machines to $100 machines in the Premium Slots area and include games found in the country's major gaming jurisdictions. The Company operates with 40 tables, including blackjack, craps and roulette tables. The Crown Royal poker room has 12 poker tables. It has its Race and Sports Book operation featuring parlay sports wagering on NFL games and pari-mutuel wagering on live and simulcast horse races. Dover Downs, Inc. is authorized to conduct video lottery, sports wagering and table game operations. The Company's Capital Club, a slots players club and tracking system, allows it to identify customers and t! o reward their level of play through various marketing programs.

Dover Downs Hotel

The Company's luxury hotel facility, the Dover Downs Hotel and Conference Center, connects to the Company's casino. The facility includes 500 rooms, including 11 luxury spa suites, a multi-purpose ballroom/concert hall, a fine dining restaurant, swimming pool and a luxurious 6,000 square-foot full-service spa. It offers a range of entertainment options to its patrons, including concerts featuring prominent entertainers, live boxing, gourmet dining, spa facilities, trade shows and conferences. During 2011, hotel occupancy averaged 90%.

Dover Downs Raceway

The Company�� Dover Downs Raceway conducts live harness races from November until April and is simulcast to more than 300 tracks and other off-track betting locations across North America on each of the Company's more than 120 live race dates. The Company's harness racing track is a 5/8-mile track that is located on DVD's property and is on the inside of its one-mile motorsports superspeedway. Additional amenities include the Winners Circle Restaurant overlooking the horse racing track. Within the Company's Race & Sports Book operation is the simulcast parlor where the patrons can wager on harness and thoroughbred races received by satellite into its facility year round from numerous tracks across North America. Television monitors throughout the area provide views of all races simultaneously and the betting windows are connected to a central computer allowing bets to be received on all races from all tracks.

The Company has an agreement with the Delaware Standardbred Owner's Association, Inc. (DSOA) effective September 1, 2010 and continuing through August 31, 2014. DSOA's membership consists of owners, trainers and drivers of harness horses participating in harness race meetings at its facilities and elsewhere in the United States and Canada. Under the DSOA agreement, the Company is required to distrib! ute as pu! rses for races conducted at its facilities a percentage of its retained share of pari-mutuel revenues.

The Company competes with Harrington Raceway and Delaware Park.

Advisors' Opinion:

[By Paul Ausick]
The REIT is expected to spend as much as $500 million in acquisitions in 2014, according to Barron��, and some potential acquisition targets include Isle of Capri Casinos Inc. (NASDAQ: ISLE) which has a market cap of around $323 million or Dover Downs Gaming & Entertainment Inc. (NYSE: DDE) with a market cap of around $47 million.
[By Paul Ausick]
Stocks on the move: Vodafone Group PLC (NASDAQ: VOD) is up 8.1% at $31.80 on reports of discussions with Verizon Communications Inc. (NYSE: VZ) that would result in the sale of Vodafone�� 45% stake in Verizon Wireless to the controlling shareholder. Dover Downs Gaming & Entertainment Inc. (NYSE: DDE) is up 10.8% at $1.54 after Wednesday�� launch of its online casino games that will soon be available to state residents to play for real money.

Best Casino Stocks To Watch For 2015: Monarch Casino & Resort Inc (MCRI)

Monarch Casino & Resort, Inc. (Monarch), incorporated in 1993, through its wholly owned subsidiary, Golden Road Motor Inn, Inc. (Golden Road), owns and operates the Atlantis Casino Resort Spa(the Atlantis), a hotel/casino facility in Reno, Nevada. Monarch�� other wholly owned subsidiaries, High Desert Sunshine, Inc. (High Desert) and Golden North, Inc. (Golden North), each own separate parcels of land located adjacent to the Atlantis. The Company owns and operates the Atlantis Casino Resort Spa, which is located approximately three miles south of downtown in the area of Reno, Nevada. The Atlantis features approximately 61,000 square feet of casino space; a hotel with 824 guest rooms and suites; ten food outlets; an enclosed year-round pool with waterfall; an outdoor pool; a health spa; two retail outlets offering clothing and resort gift shop merchandise; a full service salon for men and women; an 8,000 square-foot family entertainment center; and approximately 52,000 square feet of banquet, convention and meeting room space. During the year ended December 31, 2011, the Company acquired 1.5 acre parcel of developable land contiguous to the Riviera Black Hawk Casino.

In April 2012, it acquired Riviera Black Hawk, Inc.

The Atlantis Casino offers approximately 1,450 slot and video poker machines; approximately 39 table games, including blackjack, craps, roulette and others; a race and sports book; keno and a poker room. The Atlantis includes three contiguous high-rise hotel towers with 824 rooms and suites. The Atlantis includes three contiguous high-rise hotel towers with a total of 824 rooms and suites. The first of the three hotel towers contains 160 rooms and suites in 13 stories. The 19-story second hotel tower contains 278 rooms and suites. The third tower contains 386 rooms and suites in 28 stories.

The Atlantis hotel rooms feature designs and furnishings consistent with the Northern Nevada market, as well as nine-foot ceilings (most standard hotel rooms have eig! ht-foot ceilings), which create an open and spacious feel. The third hotel tower features a four-story waterfall with an adjacent year-round swimming pool in a climate controlled, five-story glass enclosure, which shares an outdoor third floor pool deck with a seasonal outdoor swimming pool and year round whirlpool. A full-service salon (the Salon at Atlantis) overlooks the third floor sundeck and outdoor seasonal swimming pool and offers salon-grade products and treatments for hair, nails, skincare and body services for both men and women. A health spa is located adjacent to the swimming areas, which offers treatments and amenities. The hotel rooms on the spa floor are designated as spa rooms and feature decor that is themed consistent with the spa. Certain spa treatments are also available in spa floor hotel rooms. The hotel also features glass elevators rising the full 19 and 28 stories, of the respective towers providing views of the Reno area and the Sierra Nevada mountain range.

The Atlantis has eight restaurants, two gourmet coffee bars and one snack bar. It includes 160-seat Atlantis Steakhouse gourmet restaurant; the 200-seat upscale Bistro Napa featuring a centrally located wine cellar; the Oyster Bar restaurant in the Sky Terrace offering fresh seafood, soups and bisques made to order; the Sushi Bar, also in the Sky Terrace, offering a variety of fresh raw and cooked sushi specialties, including all-you-can-eat lunch and dinner selections. The Oyster Bar and Sushi Bar can accommodate up to 139 guests; The 178-seat 24-hour Purple Parrot coffee shop; the 122-seat Cafe Alfresco restaurant serving a full menu, pizzas prepared in a wood-fired, brick oven and a variety of gelato deserts; the 170-seat Manhattan Deli restaurant specializing in piled-high sandwiches, soups, salads and desserts; two gourmet coffee bars, offering specialty coffee drinks, pastries and desserts made fresh daily in the Atlantis bakery; a snack bar and soda fountain serving ice cream and arcade-style refreshmen! ts.

The Sky Terrace is a structure with a diamond-shaped, blue glass body suspended approximately 55 feet, and spanning 160 feet across, South Virginia Street. The Sky Terrace connects the Atlantis with additional parking on its 16-acre site across South Virginia Street from the Atlantis. The structure rests at each end on two 100-foot tall Grecian columns with no intermediate support pillars. The interior of the Sky Terrace contains the Oyster Bar, the Sushi Bar, a video poker bar, banks of slot machines and a lounge area with oversized leather sofas and chairs.

Advisors' Opinion:

[By Vanina Egea] ong>Risks and Valuation

Although the Chinese government will maintain its gambling restrictions in the mainland over the next decade, Sand Corp�� market share and leverage in fixed costs will continue to riel in strong revenue growth from this region. Fiscal 2013 marked a 24.80% revenue increase ($13.8 billion) and operating margins continue to expand at the same pace. Despite the inherent risk of an economic slowdown in Asia or a recession in the U.S., which could put a halt to leisure spending, the company is well prepared to balance out any short-term losses. The casino operator�� EBITDA growth of 65.30%, for example, is an impressive result when compared to the industry�� average of 4.90%.

Looking forward, earnings per share are expected to continue their fast-paced upward trend, having jumped from $1.56 in 2011 to $2.79 at the end of fiscal 2013. The 21.6% return on equity, as well as 1.80% dividend yield should also be attractive to shareholders and future investors. Although Las Vegas Sand Corp is currently trading at a 24% price premium relative to the industry average of 22.60x trailing earnings, I feel very bullish about this firm�� long term profitability, given its strong market position in Asia.

Disclosure: Vanina Egea holds no position in any stocks mentioned.

Also check out: Andreas Halvorsen Undervalued Stocks Andreas Halvorsen Top Growth Companies Andreas Halvorsen High Yield stocks, and Stocks that Andreas Halvorsen keeps buying
About the author:Vanina EgeaA fundamental analyst at Lone Tree Analytics
Visit Vanina Egea's Website

Top 5 Services Stocks To Watch Right Now: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:

[By Roberto Pedone]
One gaming player that's rapidly moving within range of triggering a big breakout trade is Boyd Gaming (BYD), which owns and operates gaming entertainment facilities located in Nevada, Mississippi, Illinois, Louisiana and Indiana. This stock has been blazing a trail to the upside so far in 2013, with shares up sharply by 115%.

If you look at the chart for Boyd Gaming, you'll notice that this stock has been uptrending strong over the last month and change, with shares moving sharply higher from its low of $11.27 to its intraday high of $14.38 a share. During that move, shares of BYD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BYD into breakout territory above resistance at $13.79 a share, and it's quickly pushing the stock within range of another big breakout trade.

Traders should now look for long-biased trades in BYD if it manages to break out above its 52-week high at $14.50 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 2.34 million shares. If that breakout triggers soon, then BYD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $18 to $20 a share.

Traders can look to buy BYD off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $13 a share. One can also buy BYD off strength once it takes out $14.50 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.
[By Monica Gerson]
Boyd Gaming (NYSE: BYD) reported an adjusted Q4 loss of $0.24 per share on revenue of $681.5 million. However, analysts were projecting a loss of $0.24 per share on revenue of $683.2 million. Boyd shares declined 3.96% to $11.15 in the after-hours trading session.
[By Dan Caplinger]
The real question is whether Zynga can hold off experienced casino operators if online gambling becomes a reality. Already, alliances are forming, with Boyd Gaming (NYSE: BYD ) and MGM Resorts (NYSE: MGM ) having linked up with bwin.party -- the same company Zynga tapped for its real-money Zynga Poker -- to help Boyd take advantage of newly legal online gambling in New Jersey. Zynga has the obvious edge with its social savvy, but established casino companies will have huge incentives to defend their turf if Zynga starts to make a serious dent in the industry.
[By Seth Jayson]
Boyd Gaming (NYSE: BYD ) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Boyd Gaming met expectations on revenues and beat expectations on earnings per share.

Best Casino Stocks To Watch For 2015: Caribbean International Holdings Inc (CIHN)

Caribbean International Holdings Inc., formerly Caribbean Casino and Gaming Corporation, incorporated on February 12, 2009, is focused in the gaming and entertainment company. The Company has a gaming casino, located in the city of Sousa, in the Dominican Republic. In April 2012, it acquired exclusive rights to distribute Bionic Products' Energy Drinks throughout the Caribbean, South and Central America.

The Sosua Bay Grand Casino provides the gaming and entertainment experience to the Domincan Republic. It is equipped with a state of the art lighting and sound system.

Advisors' Opinion:

[By Peter Graham]
Small cap stocks Caribbean International Holdings (OTCMKTS: CIHN), Blue Water Global Group Inc (OTCBB: BLUU) and Metrospaces Inc (OTCMKTS: MSPC) have been getting some attention lately in various investment newsletters and all three have focused their activities in the Caribbean or South America. However, all three have been the subject of paid promotions which have helped to get them mentions in various investment newsletters. With that in mind, will bets on the Caribbean or South America pay off big for these three small cap stocks and their investors? Here is a quick reality check:
Caribbean International Holdings (OTCMKTS: CIHN) is All About Wings, Mechanical Bulls and Stem Cells
Formerly known as Caribbean Casino & Gaming Corp, small cap Caribbean International Holdings operates as a holding company. On Friday, Caribbean International Holdings rose 8.39% to $0.0369 for a market cap of $315,400 plus CIHN is up 985.3% over the past year and up 7,280% over the past five years according to Google Finance.

Best Casino Stocks To Watch For 2015: Tropicana Entertainment Inc (TPCA)

Tropicana Entertainment Inc. (TEI) is an owner and operator of regional casino and entertainment properties located in the United States and one casino resort development located on the island of Aruba. TEI�� United States properties include three casinos in Nevada, three casinos in Mississippi, and one casino in each of Indiana, Louisiana and New Jersey. Its properties offer a range of gaming options. TEI�� properties include Tropicana AC in the East; Casino Aztar in Central; Tropicana Laughlin, River Palms and MontBleu in the West; Lighthouse Point, Jubilee, Belle of Baton Rouge, Horizon Vicksburg and Tropicana Aruba in the South and Other.

Tropicana AC

Tropicana Casino and Resort, Atlantic City (Tropicana AC) is situated on a 14-acre site with approximately 660 feet of ocean frontage in Atlantic City, New Jersey. In addition to gaming facilities, the property features The Quarter, a Havana-themed, Las Vegas-style, approximately 200,000 square-foot indoor entertainment and retail center, hosting several restaurants, shops and an IMAX theatre. Other amenities include a 2,000-seat showroom, a full service spa and salon, a health club and indoor pool, a beach and pool bar and approximately 99,000 square feet of meeting and convention space.

Casino Aztar

Casino Aztar Evansville (Casino Aztar) is a casino hotel and entertainment complex in the state of Indiana. Over 60% of Casino Aztar's revenues come from customers within a 50-mile radius. The property's casino operations are located dockside on the three-deck City of Evansville riverboat. Located adjacent to the casino, the Company owns two distinctive hotels: the Casino Aztar Hotel, a 251-room hotel that offers guests a restaurant, conference rooms and banquet facilities; and Le Merigot Hotel, a luxurious 96-room boutique hotel with an upscale martini lounge. A 44,000-square-foot pavilion adjacent to the riverboat features three restaurants, an entertainment lounge, gift shop, coffee shop, pla! yers club and VIP lounge. The District at Casino Aztar includes two restaurants and the Le Merigot Hotel. Casino Aztar also includes a seven-story parking garage, as well as surface parking.

Tropicana Laughlin

Tropicana Laughlin Hotel and Casino (Tropicana Laughlin) is located on an approximately 31-acre site on Casino Drive, Laughlin. The casino at Tropicana Laughlin features a gaming floor. Non-gaming amenities include a heated outdoor swimming pool, seven restaurants, three full service bars, an entertainment lounge with live music, a lounge for high-end players, an 800-seat multi-purpose showroom and concert hall, meeting space, retail stores, an arcade and a covered parking structure. The property features 1,495 hotel rooms.

River Palms

River Palms Hotel and Casino (River Palms) is located on an approximately 35-acre site also on Casino Drive, with approximately 1,300 feet of frontage on the Colorado River. Non-gaming amenities include 1,001 hotel rooms, 10,500 square feet of meeting and convention space, an outdoor pool, fitness center, three restaurants, three full service bars, a showroom, two entertainment lounges with live music and a covered parking structure.

MontBleu

MontBleu Casino Resort & Spa (MontBleu) is situated on approximately 21 acres in South Lake Tahoe, Nevada surrounded by the Sierra Nevada Mountains. In addition to the casino, the property offers guests a choice of three restaurants and various non-gaming amenities, including retail shops, two nightclubs, a 1,500-seat showroom, approximately 14,000 square feet of meeting and convention space, a parking garage, a full service health spa and workout area, an indoor heated lagoon style pool with whirlpool and a 120-seat wedding chapel.

Lighthouse Point

Lighthouse Point Casino (Lighthouse Point) is a 210-foot, three-deck, dockside riverboat located in Greenville, Mississippi. In addition to slot machines, the riverboat inc! ludes a d! eli and bars on each floor while the dockside facility includes a buffet, a bar and 386 onsite surface parking spaces.

Jubilee

Bayou Caddy's Jubilee Casino (Jubilee), a 240-foot dockside riverboat, is located in Greenville. In addition to the casino facilities, the property includes a bar on each floor, a deli and approximately 700 parking spaces. The property also owns and operates the Greenville Inn & Suites, a 41-room suite hotel located less than a mile away, which offers free shuttle service to and from Jubilee and Lighthouse Point.

Belle of Baton Rouge

Belle of Baton Rouge Casino & Hotel (Belle of Baton Rouge) is a dockside riverboat situated on approximately 23 acres on the Mississippi River in the downtown historic district of Baton Rouge, across from the River Center, a 70,000-square-foot convention center. The three-deck, dockside riverboat casino is one of two casino facilities in the Baton Rouge market. Baton Rouge is located 75 miles north of New Orleans. Non-gaming amenities include 300 hotel rooms, 25,000 square feet of meeting and convention space, an outdoor pool, a fitness center, two restaurants, a deli, and an entertainment venue inside a 50,000-square-foot glass atrium that also encloses a tropical lobby.

Horizon Vicksburg

Horizon Vicksburg Casino (Horizon Vicksburg) is a dockside riverboat situated on approximately six acres in downtown Vicksburg, Mississippi. The property features a 297-foot multi-level, antebellum style, dockside riverboat casino housing. Additional amenities include 117 hotel rooms, a restaurant, two covered parking garages as well as additional surface parking. In December 2010, the Company entered into an agreement to sell all of the assets and certain liabilities associated with the operation of Horizon Vicksburg.

Tropicana Aruba

The Company operates timeshare and rental units at Tropicana Aruba Resort & Casino (Tropicana Aruba), a casino resort und! er develo! pment in Noord, Aruba. This resort will have approximately 361 timeshare and rental units, an approximately 16,000 square foot permanent casino, two pools, a swim-up bar & grill, a fitness center and tennis courts, which will be located on approximately 14 acres near Eagle Beach.

Advisors' Opinion:

[By Igor Greenwald]
A majority stake in casino operator Tropicana Entertainment (TPCA) also began with a Chapter 11 restructuring.

From January 1, 2000 to June 10, 2013, Icahn Enterprises has averaged a 20% annual return, multiplying investors' money nearly 12-fold. Berkshire-Hathaway (BRK-B) has managed only a triple over the same span.

Best Casino Stocks To Watch For 2015: Penn National Gaming Inc.(PENN)

Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.

Advisors' Opinion:

[By Paul Ausick]
Penn National Gaming Inc. (NASDAQ: PENN) completed on Monday the spin-off of its real-estate holdings into a new REIT, Gaming and Leisure Properties Inc. (G&LP) (NASDAQ: GLPI). The spin-off was first announced a year ago. Shares in GLPI are trading at around $46.51 after opening at $45.76 this morning.
[By Roberto Pedone]

Penn National Gaming (PENN) is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. This stock closed up 1.4% at $56.13 in Monday's trading session.

Monday's Volume: 1.11 million

Three-Month Average Volume: 824,334

Volume % Change: 73%

From a technical perspective, PENN jumped modestly higher here right above some near-term support at $54.71 with above-average volume. This move is quickly pushing shares of PENN within range of triggering a breakout trade. That trade will hit if PENN manages to take out some near-term overhead resistance at $57.44 to some past resistance at $58 with high volume.

Traders should now look for long-biased trades in PENN as long as it's trending above Monday's low $55.65 or above more support at $54.71 and then once it sustains a move or close above those breakout levels with volume that this near or above 824,334 shares. If that breakout hits soon, then PENN will set up to re-test or possibly take out its 52-week high at $59.93. Any high-volume move above $59.93 will then give PENN a chance to hit $65.

Best Casino Stocks To Watch For 2015: Wynn Resorts Limited(WYNN)

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.

Advisors' Opinion:

[By Holly LaFon]
His largest new buys in the first quarter are: Penn Virginia Group Holdings LP (PVG), Wynn Resorts Ltd. (WYNN), Methanex Corp. (MEOH), Solutia Inc. (SOA) and Georgia Gulf (GGC). Of his top eight stocks, five are from the chemicals industry.

Best Casino Stocks To Watch For 2015: Bwin.Party Digital Entertainment PLC (BPTY)

bwin.party digital entertainment plc (bwin.party) is a holding company. The Company is an online gaming company. It operates in five segments: sports betting, casino & games, poker, bingo; and other (including network services, World Poker Tour, InterTrader.com, WIN.com, software services and the payment services business). Its sport betting segment includes bwin, betoto, Gamebookers, Gioco Digitale and PartyBets. It�� Casino & games segment includes PartyCasino, bwin and GD Casino. Its poker segment includes PartyPoker, bwin and GD Casino. Its Bingo segment includes Foxy Bingo, Cheeky Bingo, Gioco Digitale and Binguez. The Company�� subsidiaries include BES SAS, bwin Argentina SA, bwin Italia S.r.l., bwin.party Games AB and Cashcade Limited. Its subsidiaries are engaged in management and information technology (IT) services, marketing services, online gaming, transaction services, customer support services, marketing support services and Land-based poker events. Advisors' Opinion:

[By Namitha Jagadeesh]
Bwin.Party Digital Entertainment Plc (BPTY) plunged 14 percent to 110 pence, the biggest drop since April 2011, after the online gaming company said 2013 sales will be 14 percent to 17 percent lower than last year�� figures. Analysts on average had forecast a sales drop of 9.2 percent.