Wednesday, July 31, 2013

Ford Reports Incredible Sales In May

It's been a great few months for Ford (NYSE: F) investors, who witnessed Ford's stock price rise as the market took notice of its value. After its run-up to near $16, things aren't looking to slow down on the sales front, with Ford reporting its company sales for May were up 14% vs. last year -- its best May since 2006. 


Photo courtesy: Ford.

With two months in the books for the second quarter, numbers are shaping up for a great story. I'll give you the breakdown for May sales regarding the most important models and an outlook for what we can expect going forward. Here's a hint: It's good stuff.

Trucks continue to surge
The best news that any Ford investor can hope for is strong sales from the F-Series, the most profitable model and segment in the U.S. market. Let's take a look at the sales per month, not cumulative, for the F-Series year to date.

That red line represents the 50,000 sales mark, which Ford considers a great month for the F-Series -- making the last few months phenomenal. As you can see, only the first month of the year failed to top that mark. Ford turned in a very solid first quarter and the second quarter sales for the F-Series are even stronger, giving investors reason for optimism. It's possible we could see margins in North America climb slightly higher than the 11% reported last quarter.

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Over the last 12 months, the F-Series has averaged just more than an impressive 58,000 units sold per month, yet has only topped 60,000 twice. With a 30.6% sales increase for the F-Series year over year, May numbers blew past 60,000 and topped 70,000 for the first time since March 2007.

Selling 71,604 trucks is even more impressive when you consider that General Motors (NYSE: GM  ) is about to release its highly anticipated 2014 redesigned Chevy Silverado. If you look at year-to-date numbers vs. last year, the F-Series is up a staggering 21.7%.

Ford expects strong demand to continue because of increased construction, a continuing energy boom, and aging trucks. With Ford's most important model locking in a fantastic month, here are some other important notables.

Super segment
A handful of Ford's newest models are aimed at the surging "super segment," and those include the Fiesta, Focus, Fusion, and Escape.

Ford's Fiesta is up 10.1% vs. last May, and its year-to-date sales are up 7.7% compared to last year. While the overall volume in the U.S. for May was only 6,693 vehicles, it has sold very well overseas and will be a large reason Ford succeeds in China and Europe.

The Focus sells well globally, and trailed only the Fusion in Ford's U.S. car sales. It posted a 9.8% increase vs. last year, coming in with 27,186 units sold for May. Its year-to-date sales remain fairly flat with just more than a 1% gain over last year. The Focus is still competing globally to be the No. 1 selling nameplate, and will continue to be an important vehicle for Ford's market share and sales volume.

The Fusion continues to sell well and the flashy ride only stays on dealer lots for 28 days -- a quick turnaround. What's even better is that its highest trim version, the Titanium, is only on lots for 19 days. Sales this May were up 10% compared to last year, and its year-to-date numbers were up 21.7%. Ford is bringing extra production online for the Fusion this fall, and expects that higher production will bring in higher sales results.

The Escape posted May sales at 29,123 units, which was a juicy 26.2% gain over last year and 29.7% increase in year-to-date comparisons. Both the Escape and Fusion have posted four straight months of record-breaking sales -- a trend that looks to continue.

Bottom line
Ford also announced that its third-quarter production in North America would be up 10% from last year, hinting that the company believes strong demand is here to stay this year. Ultimately, looking at these sales increases, we can expect a very strong second quarter when all is said and done. Ford is a valuable investment now and if it can minimize losses in Europe for the second quarter, it could blow analyst estimates away -- much to the delight of Ford's loyal investors. 

If you're concerned that Ford's turnaround has run its course, relax -- there's good reason to think that the Blue Oval still has big growth opportunities ahead. We've outlined those opportunities in detail, in the Fool's premium Ford research service. If you're looking for some freshly updated guidance to Ford's prospects in coming years, you've come to the right place -- click here to get started now.

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Tuesday, July 30, 2013

Best Safest Companies To Own In Right Now

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) perked up a bit yesterday to end the day on 6,558 points, but it has turned tail again today to fall 95 points, or 1.44%, to 6,464 by 9:30 a.m. EDT. Despite the apparent lessening of fears concerning the possible end of economic stimulus measures, a weak session in Asian markets led to a bearish opening in London. Until we get concrete updates on American and European monetary policies, the market looks likely to continue in this uncertain manner.

So which companies are leading the FTSE down? Here are three names that are slipping and look set to lag the index today.

Tesco
Tesco shares have fallen 4.6% after the U.K.'s biggest supermarket chain revealed a fall in like-for-like sales in its first-quarter update.�In the U.K., we saw a 1% fall, but in other markets things were worse, down 3.8% in Asia and down a scary 5.5% in Europe (all excluding petrol sales). Total group sales were actually up 2.7%, but in like-for-like terms that translated to a fall of 2.2%.

Best Safest Companies To Own In Right Now: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

Best Safest Companies To Own In Right Now: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

Top Low Price Stocks To Invest In 2014: Under Armour Inc.(UA)

Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

Advisors' Opinion:
  • [By Fernandez]

    Under Armour designs, develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States and Canada.

    You’ve probably seen the company’s “Protect This House” or “Click-Clack” commercials, and probably seen anyone from the weekend warrior to professional sports teams wearing the company’s moisture-wicking synthetic fabrics, which are designed to keep perspiration away from the skin, and regulate body temperature regardless of weather conditions.

    I must admit for full disclosure that I am an Under Armour nut, and own about 20 pairs of their shorts, shirts and shoes.

    I can attest from personal experience as a natural bodybuilder and athlete that the Under Armour apparel are the best workout clothing I have ever worn, and they look pretty darn cool too.

    Now let me make a clear distinction between a great company, and a great stock.

    Up until recently, Under Armour was the former, but not the latter.

    It has now entered into a zone where the valuation metrics, even in the face of a consumer slowdown, is looking more and more attractive.

    In fact, Under Armour just released earnings Monday.

    They were pretty much in line with analyst’s expectations, and then Under Armour slightly lowered their forward guidance for the remainder of 2008 based on those same consumer headwinds.

    The market liked what it heard sending shares up 20% (of course, the overall market was up 10%, so…). Shares have since rebounded further are now up almost 50% from their lows just last week!

    This leads me to my investment thesis in shares of Under Armour.

    I believe that Under Armour represents one of the quintessential brands of this decade when it comes to sports apparel, the way Under Armour’s fiercest rival Nike (NYSE: NKE) dominated the 90’s.

    Until now the valuation of the company was not commensurate with the! projected profit and growth, which I thought were way too high, and still might be, along with certain inventory related problems that the company now seems to be getting a handle on.

    Still, with the spike in share price, along with the uncertainty in the market and overall economy, I feel that we will still be able to purchase shares of this great company at a great price in the near future and that we’re seeing a bit of a short squeeze in shares of Under Armour.

    Why I Like the Company: One of the quintessential brands of this decade; Valuation is reaching reasonable to “cheap” levels depending on direction of consumer market and Under Armour’s stock price; Dedicated and fully invested founder with over 77% voting power via class B shares; Improved business fundamentals via better inventory controls and operational structure, and new product offerings; Further expansion available outside the U.S.; Relatively higher margins than competition

Best Safest Companies To Own In Right Now: Petroleo Brasileiro S.A.- Petrobras(PBR)

Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.

Advisors' Opinion:
  • [By David Sterman]

    Market Value: $173 billion
    Fall from 52-week high: 38%

    This Brazilian oil giant has lost $100 billion in market value since March 2011. That's a lot of dough. The sell-off is the result of a drop in oil prices, slightly stricter government policies regarding oil and gas royalties, and recent moves to issue more stock and debt to help fund business development. (Though the company now vows to stop issuing any more equity.)

    Indeed, this company has been sucking in cash for quite some time, generating a cumulative $40 billion in free cash flow loss in just the past two years. Pretty soon, though, losses will morph into outsized profits when the company's heavy investments to tap massive offshore oil fields finally bear fruit. In 2007, 2008 and again in 2009, Petrobras discovered three new offshore oil fields, known as Tupi, Jupiter, and yet-to-be-named site off of the state of Sao Paolo.

    It's the Tupi energy play that should pique your interest. It's the largest new find of oil since the Kashagan oil field was discovered in Kazakhstan in 2000 and instantly put Brazil's oil reserve base on par with industry giant Norway. Tally up all of its fields, and Petrobas' engineers estimate the country is sitting on more than 12 billion barrels of oil.

    The recent sell-off has put shares of Petrobras deep into bargain territory, trading at just 7.3 times projected 2011 profits and 1.2 times tangible book value.

  • [By ETF Authority]  

    Current Price: $47.68 12-month target: $80

    PBR plans to invest $174 billion by 2013 to support the largest oil discovery in 30 years. PetroBras has both the backing of the Brazilian government who invested over $30 billion and the Chinese private investors who have pledged over $20 billion to PBR’s discovery. Brazils government proposed to make PBR the only operator of all new offshore pre-salt oil fields yet to be exploited. PetroBras expects oil production to increased from 2.4 million barrels a day to around 5.7 million barrels a day by 2020. PBR has long-term views and have been expanding renewable energy programs such as solar, biofuel, and energy. Biofuel production is expected to increase 18% by 2013.
  • [By Dave Friedman]

    Institutional investors bought 78,663,680 shares and sold 101,125,380 shares, for a net of -22,461,700 shares. This net represents 0.23% of common shares outstanding. The number of shares outstanding is 9,872,826,100. The shares recently traded at $27.61 and the company’s market capitalization is $170,178,700,000.00. About the company: Petroleo Brasileiro S.A. – Petrobras explores for and produces oil and natural gas. The Company refines, markets, and supplies oil products. Petrobras operates oil tankers, distribution pipelines, marine, river and lake terminals, thermal power plants, fertilizer plants, and petrochemical units. The Company operates in South America and elsewhere around the world.

Sunday, July 28, 2013

Can Apple Keep Up its Tablet Dominance?

Apple's (Nasdaq: AAPL) most recent earnings were greeted warmly by investors, but the quarter was a mixed bag of positive and negative storylines. One of the areas investors are focusing the most on is Apple's iPad sales number, which was its first ever year-over-year drop in the number of tablets sold. 

In the video below, Fool analysts Evan Niu and Eric Bleeker examine whether the iPad can keep up with a tablet market that's still seeing quite a bit of global growth. As the two of them discuss, with the hottest area of tablet sales being on the extreme low end, Apple's iPad growth rates will likely trail the global average. However, what might be the most interesting storyline for the coming years is when consumers buy new tablets. Since tablets are "newer" devices, the rate at which consumers upgrade tablets is still to be determined. Whether users choose to upgrade tablets in two, three, or four years will likely determine how big the iPad's total market size will be. 

To see Evan and Eric's full thoughts, watch the video below. 

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Saturday, July 27, 2013

Sequenom's 30% Nosedive Leads an Up-and-Down Week in Biotech

Biotech's the biggest boom-or-bust business on the market, with regulatory approvals and clinical trial results routinely sending stocks hurtling up or down by significant amounts. The industry had a comparatively slow week as a whole, with the Nasdaq Biotechnology Index gaining less than 0.4% over the past five days. But in an industry like this, there are always big gainers and big losers every week -- and this was no exception.

From one firm's FDA roadblock to a big win in a phase 2 study, let's check out the stories biotech investors need to know from the week.

Array's phase 2 study pays off big
It's tough to find a stock anywhere on the market that had as good a week as Array BioPharma (NASDAQ: ARRY  ) . Shares of the biotech picked up nearly 17.8% on the week, part of a 63.5% gain year-to-date. The company's developmental drug to treat persistent allergic asthma, ARRY-502, hit the right marks in improving patient lung function in phase 2 trial results. Even better for investors, Array CEO said several other health companies have shown interest to help the company in development of ARRY-502.

Array's partnered with some of Big Pharma's best in the past. ARRY-502 will still need to deliver in later-stage trials to become a success, but the drug could have uses in treating other indications, such as atopic dermatitis, according to the firm. The asthma market's a competitive one, so finding other uses for the drug will be a big win for Array if the company can come through. For now however, the company's drug looks good after succeeding in the phase 2 trial. Keep an eye on what develops for the future -- particularly if Array can lock in a development partner.

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Good was the opposite of Vertex Pharmaceuticals' (NASDAQ: VRTX  ) week, as shares of the firm fell 8.8% over the past five days. Vertex scored big back in 2011 with the approval of its hepatitis-C drug Incivek, but that therapy's reliance on an injectable combination therapy has set back the drug's progress as all-oral hep-C medications have become all the rage. Vertex is working on its own all-oral therapy, VX-135.

The FDA stiff-armed the company and VX-135 this week, when U.S. regulators halted certain doses of the drug in Vertex's clinical trials after liver toxicity emerged in some European patients. The FDA's still allowing lower doses of the drug to continue in the tests, but it's a blow to Vertex as competitors advance in the all-oral hep-C race.

Gilead Sciences (NASDAQ: GILD  ) has taken an early lead in the race to market an all-oral compound. The company's developmental drug sofosbuvir won a priority review status from the FDA last month, and the FDA's partial hold on VX-135 will only expand the company's lead as it tries to carve out a niche in an all-oral hep-C market that could reach $20 billion. That momentum has propelled Gilead's stock into the stratosphere, and Vertex will struggle to catch up as other companies such as AbbVie also surge ahead with all-oral drugs.

Vertex couldn't stack up with biotech's big loser this week, Sequenom (NASDAQ: SQNM  ) , whose shares lost a painful 29.8% this week after the company reported an intensifying second-quarter loss in its earnings report. Earnings aren't always a big deal for smaller biotechs, but a reimbursement delay caused by billing code changes from the Centers for Medicare and Medicaid Services around Sequenom's MaterniT21 chromosomal diagnostic test sparked a rash of downgrades from across Wall Street.

For its part, Sequenom announced that it would cut back services to payers that couldn't properly reimburse the company, but several analysts warned that the company would lose market share as a result. It's a no-win scenario for Sequenom, and the stock reacted like it.

Sequenom's terrible week is a critical example of the boom-or-bust potential of biotech. To weather the storm of down weeks, you need to diversify your portfolio -- and to capitalize on that diversification, long-term investing is the best plan to maximize your chances at financial freedom. The best investment strategy is to pick great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" shares stocks that could help you build not only long-term wealth but also winning strategies that every investor should know. Click here to grab your free copy today.

Friday, July 26, 2013

Google's New Device: Boon for Netflix, Trouble for Apple?

Can somebody remind me why, exactly, I need my Blu-ray player anymore?

After all, over the past few months, save an occasional trip to the Redbox down the road, I can count on one hand the number of times I've actually grabbed a physical disc from our dusty collection of Blu-ray and DVDs.

Oh, wait! We still use the Blu-ray player to access my streaming Netflix (NASDAQ: NFLX  ) account, rent movies and shows from Amazon Prime, and listen to Pandora as we roam around the house.

Then again, while the extra features and superb audio and video of physical discs are nice, I'd venture to say 99% of what my family watches at home involves streaming content from the web.

Enter Chromecast, Google's (NASDAQ: GOOG  ) slick new HDMI-enabled dongle which allows streaming videos, music, photos, and web content wirelessly to your TV from Wi-Fi-enabled devices including Android smartphones and tablets, anything sporting Google's Chrome web browser, and Apple's (NASDAQ: AAPL  ) iPhone, iPad, and iPod devices.

Image source: Google.

For now, however, Chromecast works only with Netflix, YouTube, Google Play, and Chrome, but Google has already indicated there will be more to come as the device "automatically updates to work with a growing number of apps." True to form, Google also touts Chromecast's simplicity with a promotional video:

Better yet, Chromecast costs just $35, and those who purchase now also get three free months of Netflix's streaming service. If you back out the $7.99 monthly cost of a streaming Netflix subscription, new subscribers are technically only paying around $11 bucks for their neat new toy from Google. 

And considering Netflix fell nearly 4% Wednesday after it disappointed analysts by gaining "only" 630,000 new subscribers last quarter, you can bet the King of Streaming certainly doesn't mind the added publicity from this partnership. In fact, even for existing Netflix subscribers, Chromecast's low cost should also serve to make Netflix's streaming offerings that much stickier.

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For every winner, there also must be...
But while Chromecast could be a boon for Netflix, where does that leave competing hardware offerings from the likes of Apple (NASDAQ: AAPL  ) ?

Remember, Apple TV offers similar functionality, currently retails for nearly three times as much at $99, and requires consumers also purchase an HDMI cable to plug it into their televisions.

Sure, you say, but Apple TV also comes with a remote and already works with Netflix, Hulu, HBO Go, iTunes, Pandora, YouTube, and a number of sports stations. You'd be right on all counts, but that still hasn't exactly evoked that much of a "gotta have it" emotion for Apple TV with consumers so far.

Besides, Chromecast's current content offerings should be more than enough to keep most folks busy until Google expands its reach.

I'll admit Apple certainly doesn't rely on Apple TV to sustain its thriving business, and that's not to say the folks at Cupertino won't come out and stun the world with some amazing new Apple TV-esque product we simply cannot live without. But what happens if one of the awesome new products CEO Tim Cook keeps promising we'll see over next year ends up being anything close to Google's Chromecast? In that case, you can bet Google will be more than happy to relish in its advantage as an innovative first-mover in the space.

Our digital and technological lives are almost entirely shaped by just a handful of companies -- and Google and Apple lead the pack. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Thursday, July 25, 2013

Is Nokia Bailing on Smartphones?

Nokia (NYSE: NOK  ) just made a rather curious move. The Finnish smartphone maker recently announced that it would be acquiring Siemens' (NYSE: SI  ) 50% stake of the pair's Nokia Siemens Networks, or NSN, joint venture. The total price tag is expected to be 1.7 billion euros and should close this quarter. That will make it a wholly owned subsidiary.

As Nokia has been in the midst of its turnaround, investors have been keeping a close eye on its cash position and cash burn rates. Nokia's numerous rounds of layoffs have been in pursuit of cash savings, and Nokia's debt rating was cut into junk territory a year ago. At the end of the first quarter, Nokia was sitting on a net cash position of 4.5 billion euros. Nokia has secured bank financing for 1.2 billion euros, and Siemens is spotting Nokia the remaining 500 million euros.

Nokia estimates that it closed the second quarter with 3.7 billion to 4.2 billion euros in net cash, down 300 million to 800 million euros sequentially.

For a company that should be thrifty given its current financial standing, Nokia just spent a big chunk of change. That's renewed some speculation that the company could be preparing to sell off the smartphone segment, even as Lumia unit volumes are on the rise. J.P. Morgan analyst Sandeep Deshpande thinks the NSN move could indicate that Nokia is thinking about selling off the handset segment, although it's far from conclusive.

The NSN segment is more profitable than the devices and services business, with an adjusted operating margin of 7%. In contrast, the devices and services segment barely broke even in operations on an adjusted basis at just 0.1% last quarter. Nokia has been targeting the lower-end and less profitable segment of the market with its Asha lineup, which could put further pressure on margins. Instead of dealing with fickle consumers, Nokia may prefer to deal with fickle carriers buying network equipment.

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Of course, you can't discuss Nokia exiting the smartphone business without talking about Microsoft (NASDAQ: MSFT  ) entering the cutthroat market. The software giant has high hopes of further expanding into first-party mobile hardware following the launch of Surface last year. Microkia rumors have never come to fruition thus far, but that doesn't mean they won't eventually.

With Surface, Microsoft simply tapped a contract manufacturer (Pegatron) to make the device. Why wouldn't the company do likewise with its expected Surface Phone? First, Nokia has a broad patent portfolio that would come in handy. Second, buying in could facilitate a faster design cycle since Microsoft has no (known) experience designing smartphone hardware. Third, Nokia currently ships 80% of all Windows Phones. Fourth, Microsoft likes to blow money on huge acquisitions.

With Nokia's buyout of NSN expected to put even more pressure on its cash position by taking on more debt, one potential solution to relieve some of that pressure would be to bail on smartphones.

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Tuesday, July 23, 2013

Home Prices Up for 16th Straight Month

U.S. home prices increased a seasonally adjusted 0.7% for May, according to a Federal Housing Finance Agency (FHFA) report (link opens as PDF) released today.

After bumping up a revised 0.5% for April, analysts had expected a slightly larger 0.8% gain for May. This latest report marks the 16th straight month of house price increases. Compared to May 2012, house prices are up 7.3%, but they remain 11.2% below their peak price in April 2007.

Source: FHFA. 

On a regional level, May's gain was pushed higher by a 1.8% month-to-month price increase in the South Atlantic  (Delaware, Maryland, District of Columbia, Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida), while the East South Central region (Kentucky, Tennessee, Mississippi, Alabama) subdued results with its own 1.5% price drop.

Looking back over the last 12 months, the Pacific region (Hawaii, Alaska, Washington, Oregon, California) has notched the biggest increase in prices (+15.8%), while the East South Central region lags the other regions, up just 2.7% in the past year.

The FHFA's Housing Price Index is calculated using home sales price information from mortgages either sold to or guaranteed by Fannie Mae and Freddie Mac.

link

Sunday, July 21, 2013

Netflix Has a Lot to Prove on Monday

When Netflix (NASDAQ: NFLX  ) reports quarterly results tomorrow afternoon, it won't be a quiet affair. The company that got its start with its signature red mailers is no shrinking violet. The conference call is being staged as an "earnings interview" with CEO Reed Hastings and CFO David Wells discussing results, as BTIG Research analyst Rich Greenfield and CNBC's Julia Boorstin moderate the event.

Netflix had better live up to the hype. The stock has popped fivefold since bottoming out last summer, and expectations are high for the financials that will be revealed a few minutes after the market closes on Monday -- and nearly two hours before the live video earnings call.

The stock hit yet another 52-week high on Thursday, and we're now closing in on the stock's all-time high of $304.79 back in 2011 -- a level that seemed unlikely to be revisited anytime soon after the stock began to tank later that year.

Wall Street sees revenue climbing 21% to $1.07 billion, with profitability more than tripling to $0.40 a share.

Netflix closed out the first quarter with 36.2 million streaming subscribers worldwide, and it's a safe bet that the service's audience has grown substantially in the past three months. Back in April, Netflix's guidance was for its global streaming membership number count to clock in between 36.7 million and 37.95 million. It would be a shock if Netflix landed at the low end of its range. It wouldn't be a surprise if Netflix tops 38 million.

There has been little -- outside of perhaps the late May departure of popular Viacom (NASDAQ: VIA  ) content -- to push customers out the door. Unlike cable and satellite television companies with their annual increases, Netflix isn't budging from $7.99 a month. The economy has improved. After losing SpongeBob SquarePants, Dora the Explorer, and South Park in the Viacom purge, Netflix has bounced back with even more content.

Jim Cramer has even made a sound argument that Netflix is a stealth housing play.

Then we also get to the original programming push that nabbed Netflix's first-run streaming shows a whopping 14 Emmy nominations last week. Do you really think folks will be quick to nix a $7.99-a-month service that they're actually using, as Netflix streams more than a billion hours of content a month?

Yes, there will be plenty to prove come Monday. Did subscriber growth outpace guidance? Did losses overseas narrow to the point where Netflix can point to a period of profitability outside the U.S.? Can its declining DVD business stabilize?

There will be plenty of questions that a buoyant share price requires be answered correctly. This will be an interesting "earnings interview" indeed.

TV time
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Saturday, July 20, 2013

Last Week's Worst Performing Dow Components

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) continues to amaze. After going on a run of record-breaking days back in the spring, than tanking and losing nearly 5%, the market has once again reversed course and is back to its old ways of setting record highs on a consistent basis. On Monday and Thursday, the Dow set new all-time closing highs, while also setting a new all-time intraday high on Thursday. For the week, the blue-chip index closed higher by 79 points, or 0.51%, and now sits at 15,543. The S&P 500 had a slightly better week, gaining 0.7%, but the Nasdaq lost ground over the past five trading sessions, as it ended the week down 0.34%.

Before we hit the Dow losers, let's look at this week's best performing component. Bank of America (NYSE: BAC  ) increased by 7.03% for the week after the company released strong earnings and got an upgraded price target from UBS. Nearly all of the banks that have reported results up to this point have impressed investors, and Bank of America certainly fell into that category. UBS believes Bank of America can continue to improve earnings if it remains diligent on cost controls. That's a great sign that the company can continue showing strong profits despite whatever pace the economy recovers at.

The big losers
Shares of Microsoft (NASDAQ: MSFT  ) led all Dow losers this past week with an 11.97% drop, largely spurred by a poor earnings report. The company's release didn't paint a great picture of the Surface tablet, on which Microsoft took a $900 million charge-off. In addition, the company's most important product, Windows, showed weakness in Q2. That was perceived not just as a problem for Microsoft, but for the PC industry as a whole. 

And that's why Hewlett-Packard (NYSE: HPQ  ) came in as the third worst Dow component of the week, with shares down slightly more than 4%. As signs continue to point toward a weak PC industry, and with shares of Hewlett-Packard up more than 76% year to date, investors began selling off the once-dominant PC company. And although Meg Whitman is attempting to move the company away from relying on PC sales, HP still needs the industry to remain strong in the interim, and Microsoft's weakness in that area didn't give investors the confidence they were looking for.

Finally, American Express (NYSE: AXP  ) was the second worst Dow stock of the week, as shares declined 5.45% after not one, but two firms downgraded the company after it beat second-quarter earnings estimates and posted revenue more or less in line with expectations. Both downgrades came as a result of a possible European Commission ruling that would limit debit and credit card transaction fees to 0.2%. One analyst has estimated that such a restriction would cost American Express around $4.5 billion in fees.

The other Dow losers this week:

(For more information on why shares of the other losers fell lower this past week, click on the following links.)

Alcoa, down 0.37% Caterpillar, down 1.74% Cisco, down 0.42% Intel, down 3.59% McDonald's, down 1.29% Merck, down 1.54% Procter & Gamble, down 0.22% Verizon, down 0.91% Walt Disney, down 2.71%

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Friday, July 19, 2013

Why Reinsurance Group Shares Dropped

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 life and health reinsurer Reinsurance Group of America (NYSE: RGA  ) sank 10% today after its quarterly results disappointed Wall Street.

So what: The stock has surged over the past six months on strong top-line and bottom-line growth, but today's second-quarter results -- net loss of $49.6 million versus a profit of $141.1 million in the year-ago period -- is forcing Mr. Market to sober up a bit. While revenue is still growing at a solid rate on strong net premiums, high costs from disability coverage in Australia is becoming an increasing cause for concern among analysts.

Now what: Management said it will be extra-cautious about its Australia operations going forward. "At this time, we are suspending all quoting activity in the Australian group total and permanent disability market indefinitely and will continue to be extremely selective in other aspects of that group market until it stabilizes and the products become more sustainable," said CEO A. Greig Woodring. Of course, with all of RGA's other geographic areas -- U.S., Canada, Europe, South Africa, and Asia -- performing quite favorably, Fools might want to use the Australian weakness to buy into the stock.  

Many investors are terrified about investing in financial stocks after the crash, but the sector has one notable standout. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.


Thursday, July 18, 2013

Hot Biotech Companies For 2014

Throw all of your revenue projections out the window for now. Renewable oils manufacturer Solazyme (NASDAQ: SZYM  ) started out the week with some bad news. The company announced that it was dissolving its joint venture with Roquette Freres -- a mutual agreement -- after the two had "divergent views on an acceptable commercial strategy, timelines for manufacturing, and the marketing of joint venture products". Apparently, Roquette -- along with the rest of Europe -- is not too thrilled about using genetically modified organisms in its food.

It marks the first time that the company has had a major setback and serves as a reminder to stay on your toes when investing in the turbulent industrial biotech industry. While it certainly isn't good news in the short or long terms, it isn't all bad news, either. I know that sounds hard to believe given the dismal view investors got of the inner workings of the joint venture Monday morning. However, there are several things investors and potential investors need to know after the change in circumstances.

Hot Biotech Companies For 2014: Organovo Holdings Inc (ONVO)

Organovo Holdings, Inc. (Organovo), formerly Real Estate Restoration & Rental, Inc., incorporated in 2007, is a development-stage company. The Company has developed and is commercializing a platform technology for the generation of three-dimensional (3D) human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. On December 28, 2011, Real Estate Restoration and Rental, Inc.�� (RERR) entered into an Agreement and Plan of Merger, pursuant to which RERR merged with its, wholly owned subsidiary, Organovo (Merger Sub). On February 8, 2012, the Company merged with and into Organovo Acquisition Corp. (Acquisition Corp.), a wholly owned subsidiary of Organovo, with the Company surviving the merger as a wholly owned subsidiary of Organovo Holdings (the Merger). As a result of the Merger, Organovo acquired the business of Organovo, Inc.

The Company has collaborative research agreements with Pfizer, Inc. (Pfizer) and United Therapeutic Corporation (Unither). As of March 31, 2012, it has five federal grants, including Small Business Innovation Research grants and developed the NovoGen MMX Bioprinter (its first-generation 3D bioprinter). The Company is engaged in the development of specific 3D human tissues to aid Pfizer in discovery of therapies in two areas of interest. In addition, in October 2011, it entered into a research agreement with Unither to establish and conduct a research program to discover treatments for pulmonary hypertension using its NovoGen MMX Bioprinter technology. Additionally, under the research agreement with Unither, the Company granted Unither an option to acquire from the Company a worldwide, royalty-bearing license in certain intellectual property created under the research agreement solely for use in the treatment or prevention of pulmonary hypertension and all other lung diseases.

The Company�� NovoGen MMX Bioprinter is an automate! d device that enables the fabrication of three-dimensional (3D) living tissues comprised of mammalian cells. A custom graphic user interface (GUI) facilitates the 3D design and execution of scripts that direct precision movement of the dispensing heads to deposit cellular building blocks (bio-ink) or supporting hydrogel. The Company is using a third party manufacturer, Invetech Pty., of Melbourne, Australia, to manufacture its NovoGen MMX Bioprinter. Its bioprinting technology and surrounding intellectual property and commercial rights serve as a platform for product generation across multiple markets that employ cell- and tissue-based products and services.

The Company competes with Organogenesis, Advanced BioHealing, Tengion, Genzyme, HumaCyte and Cytograft Tissue Engineering.

Hot Biotech Companies For 2014: Transition Therapeutics Inc.(TTHI)

Transition Therapeutics Inc., a biopharmaceutical company, develops novel therapeutics for various disease indications primarily in Canada. Its lead products include ELND005 (AZD-103), a Phase II clinical trial product for the treatment of Alzheimer?s disease; TT-301 and TT-302, which are Phase I clinical trial products, for the treatment of rheumatoid arthritis, Alzheimer?s disease, traumatic brain injury, and intracerebral hemorrhage; and TT401/402, a preclinical stage product to treat diabetes. The company also has an emerging pipeline of preclinical and clinical drug candidates for the treatment of anti-inflammatory and metabolic indications. It has strategic collaborations with Elan Pharma International Limited to develop and commercialize ELND005 (AZD-103); and a licensing and collaboration agreement with Eli Lilly and Company to develop and commercialize gastrin based therapies, and the preclinical compound TT401/402. The company was formerly known as Transition T herapeutics and Diagnostics Inc. and changed its name to Transition Therapeutics Inc. on December 2000. Transition Therapeutics Inc. was founded in 1987 and is headquartered in Toronto, Canada.

Advisors' Opinion:
  • [By Fitz Gerald]

    Biomedical stocks are some of the best performers in the sector, and this is true of Transition Therapeutics. This stock recently saw a net profit margin of more than thirty five percent, and the company is a quality choice.

Top Stocks To Own Right Now: Telik Inc (TELK)

Telik, Inc. (Telik), incorporated in 1988, is a clinical-stage drug development company focused on discovering and developing small molecule drugs to treat cancer. The Company discovers its product candidates using the Company�� drug discovery technology, Target-Related Affinity Profiling (TRAP). TELINTRA, its principal drug product candidate in clinical development, is a small molecule glutathione analog inhibitor of the enzyme glutathione S-transferase P1-1 (GST P1-1). TELCYTA, its other product candidate, is a small molecule cancer drug product candidate designed to be activated in cancer cells.

Clinical Product Development

TELINTRA is the Company�� lead small molecule product candidate in clinical development for the treatment of blood disorders, including cancer. It has a mechanism of action and acts by inhibiting GST P1-1, an enzyme that is involved in the control of cellular growth and differentiation. Inhibition of GST P1-1 results in the activation of the signaling molecule Jun kinase, a regulator of the function of blood precursor cells. Preclinical tests show that TELINTRA is capable of causing the death or apoptosis of leukemic or malignant blood cells, while stimulating the growth and development of normal blood precursor cells. TELINTRA has been studied in Myelodysplastic Syndrome (MDS) using two formulations. A liposomal formulation was developed for intravenous administration of TELINTRA and was used in Phase I and Phase II studies in MDS patients. The results from the Phase II intravenous liposomal TELINTRA clinical trials demonstrated that TELINTRA treatment was associated with improvement in all three types of blood cell levels in patients with all types of MDS, including those in intermediate and high-risk groups. An oral dosage formulation (tablet) was subsequently developed and results from a Phase I study with TELINTRA tablets showed clinical activity and the formulation to be well tolerated. In June 2011, the Company initiated a Phase II clinical ! trial to evaluate TELINTRA tablets. In October 2011, the Company initiated an additional Phase IIb clinical trial to evaluate TELINTRA tablets. '

The activity and safety profile of tablet formulation allowed the Company to complete a Phase II trial of TELINTRA tablets in MDS. The primary objective of the Phase II TELINTRA tablet study was to determine the efficacy of TELINTRA. A multivariate logistic regression analysis was conducted to identify MDS disease prognostic factors associated with erythroid improvement response rates, including prior MDS treatment, age, gender, the international prognostic scoring system (IPSS), risk, Eastern Cooperative Group performance status, years from MDS diagnosis, MDS World Health Organization subtypes, anemia only versus anemia plus other cytopenias, dose schedule and starting dose. Results from this study show that TELINTRA is the first GSTP1-1 enzyme inhibitor shown to cause clinically reductions in red blood cell transfusions, including transfusion independence in low to intermediate-1 risk MDS patients, as well as improvement in platelet count and white blood cell levels in certain patients. TELINTRA, administered orally twice daily, appeared to be convenient and flexible for chronic treatment administration.

TELCYTA is a small molecule drug product candidate that the Company is developed for the treatment of cancer. TELCYTA binds to GST. TELCYTA has been evaluated in multiple Phase II and Phase III clinical trials, including trials using TELCYTA as monotherapy and in combination regimens in ovarian, non-small cell lung, breast and colorectal cancer. Results from these clinical trials indicate that TELCYTA monotherapy was generally well-tolerated, with mostly mild to moderate side effects, particularly when compared to the side effects and toxicities of standard chemotherapeutic drugs. When TELCYTA was evaluated in combination with standard chemotherapeutic drugs, the tolerability of the combinations was similar to that expected of each! drug alo! ne.

Clinical activity including objective tumor responses and/or disease stabilization was reported in the TELCYTA Phase II trials; however, TELCYTA did not meet its primary endpoints in the Phase III studies. Positive results from a Phase I-IIa multicenter, dose-ranging study of TELCYTA in combination with carboplatin and paclitaxel as first-line therapy for patients with non-small cell lung cancer, or NSCLC, were published in a peer reviewed publication. Clinical data demonstrated positive results of TELCYTA in combination with carboplatin and paclitaxel in the treatment of first-line lung cancer followed by TELCYTA maintenance therapy. As of December 31, 2011, the Company had an on-going investigator-led study at a single site of TELCYTA in patients with refractory or relapsed mantle cell lymphoma, diffuse B cell lymphoma, and multiple myeloma.

Preclinical Drug Product Development

The Company has a small molecule compound, TLK60404, in preclinical development that inhibits both Aurora kinase and VEGFR kinase. Aurora kinase is a signaling enzyme whose function is required for cancer cell division, while VEGF plays a key role in tumor blood vessel formation, ensuring an adequate supply of nutrients to support tumor growth. These lead compounds prevented tumor growth in preclinical models of human colon cancer and human leukemia by inhibiting both Aurora kinase and VEGFR kinase. A development drug product candidate, TLK60404, has been selected.

The Company, using its TRAP technology has discovered TLK60357, a novel, potent small molecule inhibitor of cell division. TLK60357 inhibits the formation of microtubules that are necessary for cancer cell growth leading to persistent G2/M cancer cell cycle block and subsequent cell death. This compound demonstrates potent broad-spectrum anticancer activity against a number of human cancer cells. This compound also displays oral efficacy in multiple, standard preclinical models of cancer. TLK60596, a potent VG! FR kinase! inhibitor, blocks the formation of new blood vessels in tumors. Oral administration of TLK60596 to animal models of human colon cancer reduced tumor growth.

Hot Biotech Companies For 2014: Cannabis Science Inc (CBIS)

Cannabis Science, Inc., incorporated on May 4, 2007, is a development-stage company. The Company is engaged in the creation of cannabis-based medicines, both with and without psychoactive properties, to treats disease and the symptoms of disease, as well as for general health maintenance. On February 9, 2012, the Company acquired GGECO University, Inc. (GGECO). On March 21, 2012, the Company acquired Cannabis Consulting Inc. (CCI Group).

The Company is engaged in medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products.

Wednesday, July 17, 2013

Hot Medical Stocks To Watch Right Now

Don't look now, but Abbott Labs (NYSE: ABT  ) is about to buy itself a bit of growth.

On Monday, the Abbott Park, Ill.-based medical products giant announced that it has agreed to buy privately held medical device-maker IDEV Technologies for $310 million, net of cash and debt. In return, it will gain IDEV's portfolio of products that include, importantly, the SUPERA Veritas self-expanding nitinol stent system, used for opening blocked blood vessels. Approved for use in Europe, SUPERA Veritas has only limited approval for use in the U.S. but is in the process of seeking FDA approval for expanded usage.

Chuck Foltz, Abbott senior vice president for vascular products, said in a statement that "the acquisition of�IDEV Technologies�will expand and complement�Abbott's existing peripheral technology portfolio of guidewires, balloon dilatation catheters, and stents, making it one of the most comprehensive and competitive portfolios in the industry."

Hot Medical Stocks To Watch Right Now: Galena Biopharma Inc (GALE)

Galena Biopharma, Inc. (Galena), formerly RXi Pharmaceuticals Corporation, incorporated on April 3, 2006, is a biotechnology company focused on discovering, developing and commercializing therapies addressing unmet medical needs using targeted biotherapeutics. The Company is pursuing the development of cancer therapeutics using peptide-based immunotherapy products, including its main product candidate, NeuVaxTM (E75), for the treatment of breast cancer and other tumors. NeuVax is a peptide-based immunotherapy intended to reduce the recurrence of breast cancer in low-to-intermediate HER2-positive breast cancer patients not eligible for trastuzumab (Herceptin; Genentech/Roche). On January 19, 2012, the Company initiated enrollment in its Phase 3 PRESENT clinical trial for NeuVax (E75 peptide plus GM-CSF) vaccine in low-to-intermediate HER2 1+ and 2+ breast cancer patients in the adjuvant setting to prevent recurrence (Clinicaltrials.gov identifier NCT01479244). The Prevention of Recurrence in Early-Stage, Node-Positive Breast Cancer with Low to Intermediate HER2 Expression with NeuVax Treatment study is a randomized, multicenter, multinational clinical trial that will enroll approximately 700 breast cancer patients. The Company�� Phase 2 trial of NeuVax achieved its primary endpoint of disease-free survival (DFS). On April 13, 2011, the Company completed its acquisition of Apthera, Inc.,(Apthera).

The Company focuses to start a Phase 2 trial comparing NeuVax in combination with trastuzumab (Herceptin) versus trastuzumab, alone, in a 300-patient, randomized study in the adjuvant breast cancer setting. The Company's second product candidate, Folate Binding Protein-E39 (FBP), is a vaccine, consisting of the peptides E39 and J65, aimed at preventing the recurrence of ovarian, endometrial, and breast cancers. On February 14, 2012, the Company announced the initiation of a Phase 1/2 clinical trial in two gynecological cancers: ovarian and endometrial adenocarcinomas. Folate binding protein has ! very limited tissue distribution and expression in non-malignant tissue and is over-expressed in more than 90% of ovarian and endometrial cancers, as well as in 20% to 50% of breast, lung, colorectal and renal cell carcinomas.

In April 2011, the Company acquired Apthera Inc and its NeuVax product candidate. The Company focuses on developing a pipeline of immunotherapy product candidates for the treatment of various cancers based on the E75 peptide, the advanced of which is NeuVax, which is targeted at preventing the recurrence of breast cancer. NeuVax has had positive Phase 1/2 clinical trial results for the prevention of breast cancer recurrence in patients who have had breast cancer and received the standard of care treatment (surgery, chemotherapy, radiotherapy and hormonal therapy as indicated). The Company had also initiated its Phase 3 PRESENT clinical trial of NeuVax for the prevention of breast cancer recurrence in early-stage low-to-intermediate HER2 breast cancer patients. NeuVax directs killer T-cells to target and destroy cancer cells that express HER2/neu, a protein associated with epithelial tumors in breast, ovarian, pancreatic, colon, bladder and prostate cancers. NeuVax is comprised of a HER2/neu-derived peptide called E75. E75 is a nine-amino acid sequence that is immunogenic (produces an immune response) and GM-CSF is a commercially available protein that acts to stimulate and activate components of the immune system such as macrophages and dendritic cells.

The Company also develops novel applications for NeuVax based on preclinical studies and phases 2 clinical trials which suggest that combining NeuVax and trastuzumab (Herceptin; Genentech/Roche) can increase antigen presentation by tumor cells by promoting receptor internalization and subsequent proteosomal degradation of the HER2 protein. The Company also is pursuing additional therapeutic indications for NeuVax that are in Phase 1/2 clinical trials. RXI-109, is a dermal anti-scarring therapy that targets! connecti! ve tissue growth factor (CTGF) and that may inhibit connective tissue formation in human fibrotic disease.

The Company competes with Roche Laboratories, Inc., Pfizer Inc., Bayer HealthCare AG, Sanofi-Aventis, US, LLC, Amgen, Inc., GlaxoSmithKline plc, Renovo Group plc, CoDa Therapeutics, Inc., Sirnaomics, Inc., FirstString Research, Inc., Merz Pharmaceuticals, LLC, Capstone Therapeutics, Halscion, Inc., Garnet Bio Therapeutics, Inc., AkPharma Inc., Promedior, Inc., Kissei Pharmaceutical Co., Ltd., Eyegene, Derma Sciences, Inc., Healthpoint Biotherapeutics, Pharmaxon, Excaliard Pharmaceuticals, Inc., Alnylam Pharmaceuticals, Inc., Marina Biotech, Inc., Tacere Therapeutics, Inc., Benitec Limited, OPKO Health, Inc., Silence Therapeutics plc, Quark Pharmaceuticals, Inc., Rosetta Genomics Ltd., Lorus Therapeutics, Inc., Tekmira Pharmaceuticals Corporation, Arrowhead Research Corporation, Regulus Therapeutics Inc. and Santaris.

Hot Medical Stocks To Watch Right Now: Organovo Holdings Inc (ONVO.PK)

Organovo Holdings, Inc. (Organovo), formerly Real Estate Restoration & Rental, Inc., incorporated in 2007, is a development-stage company. The Company has developed and is commercializing a platform technology for the generation of three-dimensional (3D) human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. On December 28, 2011, Real Estate Restoration and Rental, Inc.�� (RERR) entered into an Agreement and Plan of Merger, pursuant to which RERR merged with its, wholly owned subsidiary, Organovo (Merger Sub). On February 8, 2012, the Company merged with and into Organovo Acquisition Corp. (Acquisition Corp.), a wholly owned subsidiary of Organovo, with the Company surviving the merger as a wholly owned subsidiary of Organovo Holdings (the Merger). As a result of the Merger, Organovo acquired the business of Organovo, Inc.

The C ompany has collaborative research agreements with Pfizer, Inc. (Pfizer) and United Therapeutic Corporation (Unither). As of March 31, 2012, it has five federal grants, including Small Business Innovation Research grants and developed the NovoGen MMX Bioprinter (its first-generation 3D bioprinter). The Company is engaged in the development of specific 3D human tissues to aid Pfizer in discovery of therapies in two areas of interest. In addition, in October 2011, it entered into a research agreement with Unither to establish and conduct a research program to discover treatments for pulmonary hypertension using its NovoGen MMX Bioprinter technology. Additionally, under the research agreement with Unither, the Company granted Unither an option to acquire from the Company a worldwide, royalty-bearing license in certain intellectual property created under the research agreement solely for use in the treatment or prevention of pulmonary hypertension and all other lung diseases.

The Company�� NovoGen MMX Bioprinter is an aut! om! ated device that enables the fabrication of three-dimensional (3D) living tissues comprised of mammalian cells. A custom graphic user interface (GUI) facilitates the 3D design and execution of scripts that direct precision movement of the dispensing heads to deposit cellular building blocks (bio-ink) or supporting hydrogel. The Company is using a third party manufacturer, Invetech Pty., of Melbourne, Australia, to manufacture its NovoGen MMX Bioprinter. Its bioprinting technology and surrounding intellectual property and commercial rights serve as a platform for product generation across multiple markets that employ cell- and tissue-based products and services.

The Company competes with Organogenesis, Advanced BioHealing, Tengion, Genzyme, HumaCyte and Cytograft Tissue Engineering.

Top Stocks To Buy For 2014: Spectrum Pharmaceuticals Inc.(SPPI)

Spectrum Pharmaceuticals, Inc., a commercial-stage biotechnology company, primarily focuses on oncology and hematology. The company engages in acquiring, developing, and commercializing a broad and diverse pipeline of late-stage clinical and commercial products. It markets Zevalin, a prescribed form of cancer therapy, radioimmunotherapy; and Fusilev, a novel folate analog formulation and the pharmacologically active isomer of the racemic compound, calcium leucovorin. The company?s drugs in late stage development include Apaziquone, an anti-cancer agent; and Belinostat, a histone deacytelase inhibitor. Its drugs in development also include Ozarelix a luteinizing hormone releasing hormone antagonist, which is in Phase II clinical stage; SPI-1620, a peptide agonist of endothelin B receptors, which is in Phase I clinical stage; and RenaZorb, a lanthanum-based nanoparticle phosphate binding agent, which is in preclinical stage. The company was formerly known as NeoTherapeutics, Inc. and changed its name to Spectrum Pharmaceuticals, Inc. in December 2002. Spectrum Pharmaceuticals, Inc. was founded in 1987 and is based in Henderson, Nevada.

Advisors' Opinion:
  • [By Roberto Pedone]

    Another stock that's quickly moving within range of triggering a big time breakout trade isSpectrum Pharmaceuticals (SPPI), which is a commercial stage biotechnology company integrated in commercial and drug development operations, primarily in oncology and hematology. This stock has been destroyed by the short-sellers so far in 2013, with shares off by over 30%.

    If you look at the chart for Spectrum Pharmaceuticals, you'll see that this stock has been trending sideways for the last two months in a consolidation chart pattern, with shares moving between $6.92 on the downside and $7.77 on the upside. This sideways pattern is coming after shares of SPPI gapped down sharply back in March from $12.47 to below $8 a share with heavy downside volume. Shares of SPPI are now quickly moving within range of triggering a major breakout trade above the upper end of its recent sideways chart pattern.

    Market players should now look for long-biased trades in SPPI if it manages to break out above some near-term overhead resistance levels at $7.65 to $7.77 a share and then once it takes out its 50-day at $8 and its gap down day high at $8.26 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.43 million shares. If that breakout hits soon, then SPPI will set up to re-fill some of its previous gap down zone that started at $12.47 a share. Some possible upside targets if SPPI gets into that gap with volume are $9.50 to its 200-day at $10.89 a share.

    Traders can look to buy SPPI off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support levels at $7.09 to $7 a share. One can also buy SPPI off strength once it clears those breakout levels with volume and then simply use a stop at around $7 a share.

    This stock is an absolute favorite target of the short-sellers, since the current short interest as a percentage of the float for SPPI is extremely high at 37.4%. This stock has explosive upside potential if it trades into that gap with volume, so make sure to have it on your breakout trading radar.

Hot Medical Stocks To Watch Right Now: Cannabis Science Inc (CBIS)

Cannabis Science, Inc., incorporated on May 4, 2007, is a development-stage company. The Company is engaged in the creation of cannabis-based medicines, both with and without psychoactive properties, to treats disease and the symptoms of disease, as well as for general health maintenance. On February 9, 2012, the Company acquired GGECO University, Inc. (GGECO). On March 21, 2012, the Company acquired Cannabis Consulting Inc. (CCI Group).

The Company is engaged in medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products.

Hot Medical Stocks To Watch Right Now: Telik Inc (TELK.PH)

Telik, Inc. (Telik), incorporated in 1988, is a clinical-stage drug development company focused on discovering and developing small molecule drugs to treat cancer. The Company discovers its product candidates using the Company�� drug discovery technology, Target-Related Affinity Profiling (TRAP). TELINTRA, its principal drug product candidate in clinical development, is a small molecule glutathione analog inhibitor of the enzyme glutathione S-transferase P1-1 (GST P1-1). TELCYTA, its other product candidate, is a small molecule cancer drug product candidate designed to be activated in cancer cells.

Clinical Product Development

TELINTRA is the Company�� lead small molecule product candidate in clinical development for the treatment of blood disorders, including cancer. It has a mechanism of action and acts by inhibiting GST P1-1, an enzyme that is involved in the control of cellular growth and differentiation. Inhibition of GST P1-1 results in the activation of the signaling molecule Jun kinase, a regulator of the function of blood precursor cells. Preclinical tests show that TELINTRA is capable of causing the death or apoptosis of leukemic or malignant blood cells, while stimulating the growth and development of normal blood precursor cells. TELINTRA has been studied in Myelodysplastic Syndrome (MDS) using two formulations. A liposomal formulation was developed for intravenous administration of TELINTRA and was used in Phase I and Phase II studies in MDS patients. The results from the Phase II intravenous liposomal TELINTRA clinical trials demonstrated that TELINTRA treatment was associated with improvement in all three types of blood cell levels in patients with all types of MDS, including those in intermediate and high-risk groups. An oral dosage formulation (tablet) was subsequently developed and results from a Phase I study with TELINTRA tablets showed clinical activity and the formulation to be well tole rated. In June 2011, the Company initiated a Phase II clini! c! al trial to evaluate TELINTRA tablets. In October 2011, the Company initiated an additional Phase IIb clinical trial to evaluate TELINTRA tablets. '

The activity and safety profile of tablet formulation allowed the Company to complete a Phase II trial of TELINTRA tablets in MDS. The primary objective of the Phase II TELINTRA tablet study was to determine the efficacy of TELINTRA. A multivariate logistic regression analysis was conducted to identify MDS disease prognostic factors associated with erythroid improvement response rates, including prior MDS treatment, age, gender, the international prognostic scoring system (IPSS), risk, Eastern Cooperative Group performance status, years from MDS diagnosis, MDS World Health Organization subtypes, anemia only versus anemia plus other cytopenias, dose schedule and starting dose. Results from this study show that TELINTRA is the first GSTP1-1 enzyme inhibitor shown to cause clinically reductions in red blood cell transf usions, including transfusion independence in low to intermediate-1 risk MDS patients, as well as improvement in platelet count and white blood cell levels in certain patients. TELINTRA, administered orally twice daily, appeared to be convenient and flexible for chronic treatment administration.

TELCYTA is a small molecule drug product candidate that the Company is developed for the treatment of cancer. TELCYTA binds to GST. TELCYTA has been evaluated in multiple Phase II and Phase III clinical trials, including trials using TELCYTA as monotherapy and in combination regimens in ovarian, non-small cell lung, breast and colorectal cancer. Results from these clinical trials indicate that TELCYTA monotherapy was generally well-tolerated, with mostly mild to moderate side effects, particularly when compared to the side effects and toxicities of standard chemotherapeutic drugs. When TELCYTA was evaluated in combination with standard chemotherapeutic drugs, the tolera bility of the combinations was similar to that expected! of e! ac! h drug ! alone.

Clinical activity including objective tumor responses and/or disease stabilization was reported in the TELCYTA Phase II trials; however, TELCYTA did not meet its primary endpoints in the Phase III studies. Positive results from a Phase I-IIa multicenter, dose-ranging study of TELCYTA in combination with carboplatin and paclitaxel as first-line therapy for patients with non-small cell lung cancer, or NSCLC, were published in a peer reviewed publication. Clinical data demonstrated positive results of TELCYTA in combination with carboplatin and paclitaxel in the treatment of first-line lung cancer followed by TELCYTA maintenance therapy. As of December 31, 2011, the Company had an on-going investigator-led study at a single site of TELCYTA in patients with refractory or relapsed mantle cell lymphoma, diffuse B cell lymphoma, and multiple myeloma.

Preclinical Drug Product Development

The Company has a small molecule compound, TLK60 404, in preclinical development that inhibits both Aurora kinase and VEGFR kinase. Aurora kinase is a signaling enzyme whose function is required for cancer cell division, while VEGF plays a key role in tumor blood vessel formation, ensuring an adequate supply of nutrients to support tumor growth. These lead compounds prevented tumor growth in preclinical models of human colon cancer and human leukemia by inhibiting both Aurora kinase and VEGFR kinase. A development drug product candidate, TLK60404, has been selected.

The Company, using its TRAP technology has discovered TLK60357, a novel, potent small molecule inhibitor of cell division. TLK60357 inhibits the formation of microtubules that are necessary for cancer cell growth leading to persistent G2/M cancer cell cycle block and subsequent cell death. This compound demonstrates potent broad-spectrum anticancer activity against a number of human cancer cells. This compound also displays oral efficacy in multipl e, standard preclinical models of cancer. TLK6059! 6, a pote! nt! VGFR kin! ase inhibitor, blocks the formation of new blood vessels in tumors. Oral administration of TLK60596 to animal models of human colon cancer reduced tumor growth.

Tuesday, July 16, 2013

Poor Weather Rained on Coca-Cola Earnings

Coca-Cola (NYSE: KO  ) reported earnings before the opening bell rang on Tuesday. Here's what you need to know about the company's results, and why the shares were down immediately after the earnings announcements.

Source: Wikimedia Commons.

Unsavory results
The cola giant delivered earnings of $0.63 per share for the second quarter, which was in line with Wall Street expectations. However, revenue fell to $12.75 billion, shy of the $12.95 billion analysts expected. Global sales volume rose 1% for the quarter, despite significant weakness in North American and European soda sales. Coke shares were down more than 2% after the company issued its quarterly results Tuesday morning.

Under the weather
Even though U.S. soda volumes have fallen for roughly a decade, Coca-Cola attributed the fizzled-out consumption in both domestic and international markets to unusually cool and wet weather. Volume growth in Vietnam, which rose a robust 28%. But, disappointingly, India grew at a mere 1%. Consumption was flat in several key emerging markets, notably China and Brazil. Volumes declined 1% for the second quarter in North America, while European volumes fell a gloomy 4%. Sometimes, even being one of the globe's most diversified companies isn't enough to ward off a dreary sales quarter.

While the average U.S. consumer swigs 401 servings of Coke products per person annually, Indian and Chinese inhabitants sip 14 and 39 servings, respectively, creating huge opportunities for companies like Coke and rivals PepsiCo and Dr Pepper Snapple in these relatively untapped emerging markets. But the sticky wicket that Coke and its competitors find themselves in is that their global brands have already conquered many parts of the world economy, specifically developed markets similar to our domestic one. They now need to succeed in markets with more regional preferences, which may pose a bigger problem than initially thought.

Sunny climate for noncarbonated drink sales
The one bright spot for Coke's sluggish second-quarter results was sales of noncarbonated beverages. For the second quarter, overall volume for noncarbonated drinks rose 5% in North America, fueled by sales of products such as Dasani bottled water, Powerade, and SmartWater. Since noncarbonated drinks are growing at a faster rate than carbonated ones, Coca-Cola's future success rests in the breadth and depth of its noncarbonated offerings. Noncarbonated beverages make up about 25% of the company's global sales, a figure that will likely increase in future years.

Foolish takeaway
Some Coke shareholders may be feeling sluggish after Tuesday's earnings announcement. But serious, long-term investors thirst for stock price dips of great companies, and view them as significant buying opportunities.

Many longtime Coca-Cola shareholders love the stock for its refreshing dividend. In fact, Coke is one of three great dividend-paying stocks we feature in a free report. If you're looking for two more long-term dividend stock ideas, you're invited to check out The Motley Fool's brand-new special report, "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so simply click here now and get your copy today.

Hot Insurance Companies For 2014

Suddenly, Google (NASDAQ: GOOG  ) is getting grabby. According to a report from the Google Operating System, a new service called Google Mine is in the works that would allow Google+ users to document and share what they own.

All Google will say is that it is always working on new things. No news there. But imagine if Google Mine does come to be. Not only could you share notes about your collections, or document valuables for insurance purposes, but you could also Imagine a barter system whereby you sell or trade via Google+, with any money exchanged via Google Wallet. A tailored credit or debit card might not be far behind, says Fool contributor Tim Beyers in the following video.

At the very least, the idea threatens eBay (NASDAQ: EBAY  ) . The company depends on an ever-increasing volume of transactions to fund growth. In Q1, the auctioneer was responsible for $49 billion worth of commerce. By 2015, eBay wants to enable $300 billion in commerce annually, up from $175 billion last year. Google Mine, like Craigslist before it, could stand in the way of that.

Do you agree? Please watch the video to get Tim's full take, and then let us know if having Google Mine would make you more or less bullish on the search king's long-term prospects.

Hot Insurance Companies For 2014: Sun Life Financial Inc.(SLF)

Sun Life Financial Inc., together with its subsidiaries, provides various life and health insurance, savings, investment management, retirement, and pension products and services to individuals and corporate customers. It offers individual life insurance policies, including individual term life, universal life, critical illness, disability, accident, and accidental death and dismemberment insurance policies; and group life insurance policies. The company also provides individual health insurance, long-term care insurance, group health benefits, dental benefits, and group insurance; and various individual and group annuity, retirement, and investment income products and services, such as mutual and pooled funds, variable and fixed annuities, savings, retirement and pension plans, and education savings. In addition, it offers asset management services for corporate retirement plans, separate accounts, public or government funds, and insurance company assets to institutional clients; and advisory services to individual investors. Further, the company provides run-off reinsurance services. Sun Life Financial Inc. distributes its products through direct sales agents, independent and managing general agents, financial intermediaries, broker-dealers, banks, pension and benefit consultants, and other third-party marketing organizations. The company operates primarily in Bermuda, Canada, China, Hong Kong, India, Indonesia, Ireland, the Philippines, the United States, and the United Kingdom. Sun Life Financial Inc. was founded in 1999 and is based in Toronto, Canada.

Hot Insurance Companies For 2014: Aflac Incorporated(AFL)

Aflac Incorporated, through its subsidiary, American Family Life Assurance Company of Columbus (Aflac), provides supplemental health and life insurance. The company offers various voluntary supplemental insurance products, including cancer plans, general medical indemnity plans, medical/sickness riders, care plans, living benefit life plans, ordinary life insurance plans, and annuities in Japan. It also provides loss-of-income products, such as life and short-term disability plans; and products designed to protect individuals from depletion of assets, which comprise hospital indemnity, fixed-benefit dental, vision care, accident, cancer, critical illness/critical care, and hospital intensive care plans in the United States. The company sells its products through sales associates and brokers, affiliated corporate agencies, independent corporate agencies, and individual agencies. Aflac Incorporated was founded in 1955 and is headquartered in Columbus, Georgia.

Advisors' Opinion:
  • [By Martin]

    David Gary Thompson, who is a Director at AFLAC Inc. (NYSE:AFL), bought 5,000 shares on Sep 26 at $31.50 per share for a total value of $157,500. About the company: Aflac, Inc. is a general business holding company. The Company, through its subsidiaries, provides supplemental insurance to individuals in the United States and Japan. Aflac’s products include accident/disability plans, cancer expense plans, short-term disability plans, sickness and hospital indemnity plans, hospital intensive care plans, and fixed-benefit dental plans.

  • [By Vita]

    AFLAC Inc. (NYSE:AFL): Down 1.75% to $31.46. Aflac, Inc. is a general business holding company. The Company, through its subsidiaries, provides supplemental insurance to individuals in the United States and Japan. Aflac’s products include accident/disability plans, cancer expense plans, short-term disability plans, sickness and hospital indemnity plans, hospital intensive care plans, and fixed-benefit dental plans.

Top Chemical Stocks To Watch Right Now: Aon Corporation(AON)

Aon Corporation provides risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing services primarily in the United States, the Americas, the United Kingdom, Europe, the Middle East, Africa, and the Asia Pacific. The company?s Risk Solutions segment offers retail brokerage products and services, including affinity products, general underwriting management services, placement services, and captive management services; and advisory services to technology, financial services, agribusiness, aviation, construction, health care, and energy industries, as well as facilitates various risk management solutions for property liability, general liability, professional liability, directors' and officers' liability, workers' compensation, and various healthcare products. This segment also provides risk consulting services comprising captive management; eSolutions products that enable clients to manage risks, policies, claims, and safet y concerns through an integrated technology platform; reinsurance brokerage services, such as actuarial, enterprise risk management, catastrophe management, and rating agency advisory services; property and casualty reinsurance; and specialty lines, which include professional liability, medical malpractice, accident, life, and health, as well as capital management transaction and advisory services. Its HR Solutions segment offers human capital services in the areas of health and benefits, retirement, compensation, and strategic human capital; and benefits administration and human resource business process outsourcing services. The company was founded in 1919 and is headquartered in Chicago, Illinois.

Advisors' Opinion:
  • [By Robert Holmes]

    Company Profile: Aon is a provider of risk-management services, insurance and reinsurance brokerage and human capital and management consulting. In July 2010, the company announced a merger with Hewitt Associates, an HR consulting and outsourcing company.

    Share Price: $46.30 (Dec. 6)

    2011 Return: 0.7%

    Investment Thesis: William Blair analysts see several catalysts for Aon Corp. in 2012, the most notable of which is the merger with Hewitt, which should reap rewards next year. The analysts forecast a 100-basis-point improvement in pretax margin for 2012 and a 250-basis-point improvement for 2013.

    "The margin in the brokerage segment has finally begun showing progress," the analysts write. "With forecast organic growth remaining solid (our estimate is 3% for 2012), the segment should be able to secure additional margin expansion for the next few years. We forecast 40 basis points of pretax margin improvement during 2012 and 2013."

    Additionally, William Blair expects Aon's free cash flow growth to remain robust and their forecast assumes 30 million of share repurchases over the next two years, which they argue could be a conservative number if the cash flow from the merger with Hewitt. accelerates into 2012.

Hot Insurance Companies For 2014: Genworth Financial Inc (GNW)

Genworth Financial, Inc., a financial security company, provides insurance, wealth management, investment, and financial solutions in the United States and internationally. The company offers various insurance and fixed annuity products, including life and long-term care insurance products; payment protection insurance products for consumers primarily to meet specified payment obligations; and wealth management products, such as managed account programs with advisor support and financial planning services. It also provides mortgage insurance products and related services to insure prime-based, individually underwritten residential mortgage loans or flow mortgage insurance; and mortgage insurance on a structured or bulk basis, as well as offers services, analytical tools, and technology that enable lenders to operate and manage risk. In addition, the company provides institutional products consisting of funding agreements, funding agreements backing notes, and guaranteed in vestment contracts. Genworth Financial, Inc. distributes its products and services through financial intermediaries, advisors, independent distributors, affinity groups, and sales specialists. The company was founded in 2003 and is headquartered in Richmond, Virginia.

Hot Insurance Companies For 2014: Fairfax Financial Holdings Ltd (FRFHF)

Fairfax Financial Holdings Limited (Fairfax) is a financial services holding company. The Company, through its subsidiaries, is principally engaged in property and casualty insurance and reinsurance and the associated investment management. The Company�� segments consist of Insurance, Reinsurance, Insurance and Reinsurance Other, Runoff, and Corporate and Other. On December 22, 2011, the Company completed the acquisition of 75% interests in Sporting Life Inc. On August 16, 2011, the Company acquired William Ashley China Corporation. On March 24, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of The Pacific Insurance Berhad. On February 9, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of First Mercury Financial Corporation. In October 2012, its RiverStone runoff subsidiary acquired all the outstanding shares of Brit Insurance Limited.

Monday, July 15, 2013

Are You on Track to Benefit From Higher Natural Gas Prices?

In this week's edition of The Motley Fool's energy-focused show Drilling for Value, energy analysts Joel South and Taylor Muckerman discuss several topics around natural gas with Motley Fool senior analyst Michael Olsen, CFA.

Who can benefit from a rise in natural gas prices? How about CSX (NYSE: CSX  ) ? Here is a company that has made coal transportation a big part of its business. At current levels, utilities are indifferent to coal or natural gas use, but if prices rise much higher, the coal-to-gas switching that permeated 2012 could begin to reverse. This would be to CSX and its investors' benefit. There are a few other reasons CSX might be hoping for a price increase, and our analysts cover them in the following video.

Natural gas has been affecting other industries for some time now. Why not let it have a positive affect on your portfolio, too? Forward-thinking energy players such as General Electric and Ford have already plowed sizable amounts of research capital into this little-known stock ... because they know it holds the key to the explosive profit power of the coming "no choice fuel revolution." Luckily, there's still time for you to get on board if you act quickly. All the details are inside an exclusive report from The Motley Fool. Click here for the full story!

 

Sunday, July 14, 2013

New Studies Link Fracking to Earthquakes -- Now What?

As new evidence emerges connecting one step in fracking operations to a greater risk of earthquakes, fracking operators are even more exposed to the turning tide of public opinion. However, it's not the fracking itself that seems to be the problem. Watch this video to find out what particular aspects of the process are implicated, and what can be done about it.

One home run investing opportunity is in the business of dealing with energy challenges, and it's been slipping under Wall Street's radar for months. Forward-thinking energy players such as General Electric and Ford have already plowed sizable amounts of research capital into this little-known stock -- because they know it holds the key to the explosive profit power of the coming "no choice fuel revolution." Luckily, there's still time for you to get on board if you act quickly. All the details are inside an exclusive report from The Motley Fool. Click here for the full story!

Saturday, July 13, 2013

Best Medical Stocks To Invest In 2014

On this day in economic and business history...

Candles, soap, and a bit of serendipity led to the creation of one of the world's most successful business partnerships: Procter & Gamble (NYSE: PG  ) . English emigrant William Procter and Irish emigrant James Gamble, who had both traveled to Cincinnati, Ohio, for medical purposes in the early 19th century, became business partners and brothers-in-law after each man met and married one of Alexander Norris' daughters. Norris convinced candle-maker Procter and soap-maker Gamble to work together, and the two distinct businesses became one under the P&G brand on April 12, 1837.

Their first year was not easy. P&G not only had to compete with 14 other Cincinnati soap and candle makers, but it had to do so at the beginning of the Panic of 1837, which marked the start of one of the worst depressions in American history, lasting for more than five years. P&G persevered through these tough times (as you might expect) to grow into the world's largest consumer-goods company by the present day. Here's a brief timeline of the company's most notable early events:

Best Medical Stocks To Invest In 2014: Scancell Holdings PLC (SCLP)

Scancell Holdings PLC is a United Kingdom-based company. The Company�� principal activity of the consists of the discovery and development of monoclonal antibodies and vaccines for the treatment of cancer. In April 2012, the Company completed recruitment to the Phase 1 clinical trial of SCIBI. In May 2012, the Company commenced recruitment and treatment of the first patient in the second part of it Phase 1/2 clinical trial of SCIBI. The Phase 2 part of the trial is conducted in five United Kingdom centers in Nottingham, Manchester, Newcastle, Leeds, and Southampton. On August 15, 2012, the Company announced the development of a platform technology, Moditope.

Best Medical Stocks To Invest In 2014: Galena Biopharma Inc (GALE)

Galena Biopharma, Inc. (Galena), formerly RXi Pharmaceuticals Corporation, incorporated on April 3, 2006, is a biotechnology company focused on discovering, developing and commercializing therapies addressing unmet medical needs using targeted biotherapeutics. The Company is pursuing the development of cancer therapeutics using peptide-based immunotherapy products, including its main product candidate, NeuVaxTM (E75), for the treatment of breast cancer and other tumors. NeuVax is a peptide-based immunotherapy intended to reduce the recurrence of breast cancer in low-to-intermediate HER2-positive breast cancer patients not eligible for trastuzumab (Herceptin; Genentech/Roche). On January 19, 2012, the Company initiated enrollment in its Phase 3 PRESENT clinical trial for NeuVax (E75 peptide plus GM-CSF) vaccine in low-to-intermediate HER2 1+ and 2+ breast cancer patients in the adjuvant setting to prevent recurrence (Clinicaltrials.gov identifier NCT01479244). The Prevention of Recurrence in Early-Stage, Node-Positive Breast Cancer with Low to Intermediate HER2 Expression with NeuVax Treatment study is a randomized, multicenter, multinational clinical trial that will enroll approximately 700 breast cancer patients. The Company�� Phase 2 trial of NeuVax achieved its primary endpoint of disease-free survival (DFS). On April 13, 2011, the Company completed its acquisition of Apthera, Inc.,(Apthera).

The Company focuses to start a Phase 2 trial comparing NeuVax in combination with trastuzumab (Herceptin) versus trastuzumab, alone, in a 300-patient, randomized study in the adjuvant breast cancer setting. The Company's second product candidate, Folate Binding Protein-E39 (FBP), is a vaccine, consisting of the peptides E39 and J65, aimed at preventing the recurrence of ovarian, endometrial, and breast cancers. On February 14, 2012, the Company announced the initiation of a Phase 1/2 clinical trial in two gynecological cancers: ovarian and endometrial adenocarcinomas. Folate binding protein has ! very limited tissue distribution and expression in non-malignant tissue and is over-expressed in more than 90% of ovarian and endometrial cancers, as well as in 20% to 50% of breast, lung, colorectal and renal cell carcinomas.

In April 2011, the Company acquired Apthera Inc and its NeuVax product candidate. The Company focuses on developing a pipeline of immunotherapy product candidates for the treatment of various cancers based on the E75 peptide, the advanced of which is NeuVax, which is targeted at preventing the recurrence of breast cancer. NeuVax has had positive Phase 1/2 clinical trial results for the prevention of breast cancer recurrence in patients who have had breast cancer and received the standard of care treatment (surgery, chemotherapy, radiotherapy and hormonal therapy as indicated). The Company had also initiated its Phase 3 PRESENT clinical trial of NeuVax for the prevention of breast cancer recurrence in early-stage low-to-intermediate HER2 breast cancer patients. NeuVax directs killer T-cells to target and destroy cancer cells that express HER2/neu, a protein associated with epithelial tumors in breast, ovarian, pancreatic, colon, bladder and prostate cancers. NeuVax is comprised of a HER2/neu-derived peptide called E75. E75 is a nine-amino acid sequence that is immunogenic (produces an immune response) and GM-CSF is a commercially available protein that acts to stimulate and activate components of the immune system such as macrophages and dendritic cells.

The Company also develops novel applications for NeuVax based on preclinical studies and phases 2 clinical trials which suggest that combining NeuVax and trastuzumab (Herceptin; Genentech/Roche) can increase antigen presentation by tumor cells by promoting receptor internalization and subsequent proteosomal degradation of the HER2 protein. The Company also is pursuing additional therapeutic indications for NeuVax that are in Phase 1/2 clinical trials. RXI-109, is a dermal anti-scarring therapy that targets! connecti! ve tissue growth factor (CTGF) and that may inhibit connective tissue formation in human fibrotic disease.

The Company competes with Roche Laboratories, Inc., Pfizer Inc., Bayer HealthCare AG, Sanofi-Aventis, US, LLC, Amgen, Inc., GlaxoSmithKline plc, Renovo Group plc, CoDa Therapeutics, Inc., Sirnaomics, Inc., FirstString Research, Inc., Merz Pharmaceuticals, LLC, Capstone Therapeutics, Halscion, Inc., Garnet Bio Therapeutics, Inc., AkPharma Inc., Promedior, Inc., Kissei Pharmaceutical Co., Ltd., Eyegene, Derma Sciences, Inc., Healthpoint Biotherapeutics, Pharmaxon, Excaliard Pharmaceuticals, Inc., Alnylam Pharmaceuticals, Inc., Marina Biotech, Inc., Tacere Therapeutics, Inc., Benitec Limited, OPKO Health, Inc., Silence Therapeutics plc, Quark Pharmaceuticals, Inc., Rosetta Genomics Ltd., Lorus Therapeutics, Inc., Tekmira Pharmaceuticals Corporation, Arrowhead Research Corporation, Regulus Therapeutics Inc. and Santaris.

Best Safest Stocks For 2014: EntreMed Inc (ENMD)

EntreMed, Inc. (EntreMed), incorporated in 1991, is a clinical-stage pharmaceutical company. EntreMed's drug candidate is ENMD-2076, an Aurora A and angiogenic kinase inhibitor for the treatment of cancer. ENMD-2076 has completed Phase I studies in patients with advanced solid tumors, multiple myeloma and leukemia and is completing data for a multi-center Phase II study in patients with platinum resistant ovarian cancer. The Company�� other product candidates have includes MKC-1, ENMD-1198 and 2-methoxyestrdiol (2ME2, Panzem) for treatment of rheumatoid arthritis.

ENMD-2076 is a novel orally-active, Aurora A/angiogenic kinase inhibitor with potent activity against Aurora A and multiple tyrosine kinases linked to cancer and inflammatory diseases. ENMD-2076 is relatively selective for the Aurora A isoform in comparison to Aurora B. Aurora kinases are key regulators of the process of mitosis, or cell division, and are often over-expressed in human cancers. ENMD-2076 exerts its effects through multiple mechanisms of action, including anti-proliferative activity and the inhibition of angiogenesis. ENMD-2076 has demonstrated significant, dose-dependent preclinical activity as a single agent, including tumor regression, in multiple xenograft models (such as breast, colon, leukemia), as well as activity towards ex vivo-treated human leukemia patient cells.

Best Medical Stocks To Invest In 2014: Johnson & Johnson(JNJ)

Johnson & Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The Consumer segment provides products used in baby care, skin care, oral care, wound care, and women?s health care fields, as well as nutritional, over-the-counter pharmaceutical products, and wellness and prevention platforms under the brands of JOHNSON?S, AVEENO, CLEAN & CLEAR, JOHNSON?S Adult, NEUTROGENA, RoC, LUBRIDERM, DABAO, LISTERINE, REACH, BAND-AID, CAREFREE, STAYFREE, SPLENDA, TYLENOL, SUDAFED, ZYRTEC, MOTRIN IB, and PEPCID AC. The Pharmaceutical segment offers products in various therapeutic areas, such as anti-infective, antipsychotic, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, and virology. Its principal products include REMICADE for the treatment of immune me diated inflammatory diseases; STELARA for the treatment of moderate to severe plaque psoriasis; SIMPONI, a treatment for adults with moderate to severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis; VELCADE for the treatment of multiple myeloma; PREZISTA and INTELENCE for treating HIV/AIDS patients; NUCYNTA for moderate to severe acute pain; INVEGA SUSTENNAtm for the acute and maintenance treatment of schizophrenia in adults; RISPERDAL CONSTA for the management of bipolar I disorder and schizophrenia; and PROCRIT to stimulate red blood cell production. The Medical Devices and Diagnostics segment primarily offers circulatory disease management products; orthopaedic joint reconstruction, spinal care, and sports medicine products; surgical care, aesthetics, and women?s health products; blood glucose monitoring and insulin delivery products; professional diagnostic products; and disposable contact lenses. The company was founded in 1886 and is based in Ne w Brunswick, New Jersey.

Advisors' Opinion:
  • [By Guru Focus]

    Johnson & Johnson (JNJ) has a market capitalization of $179.39 billion. The company employs 117,000 people, generates revenues of $65,030.00 million and has a net income of $9,672.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,841.00 million. Because of these figures, the EBITDA margin is 19.75 percent (operating margin 19.01 percent and the net profit margin finally 14.87 percent).

    Twelve trailing months earnings per share reached a value of $3.48. Last fiscal year, the company paid $2.25 in form of dividends to shareholders.

    Here are the price ratios of the company: The P/E ratio is 18.86, Price/Sales 2.77 and Price/Book ratio is not calculable. Dividend Yield: 3.46 percent. The beta ratio is 0.55.

  • [By ETF Authority]

    I have viewed Johnson & Johnson as the perfect dividend stock ever since I started investing in dividend stocks. As such, I have an above-average position in it. The recent product recalls and the lack of immediate action on behalf of executives are a potential issue for the company, although I doubt it will lead to JNJ’s demise. The company should be able to turn around, and those that entered at current levels likely will generate strong returns in the future.

  • [By Sy_Harding]

    Johnson & Johnson (JNJ) engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company has raised distributions for 49 years in a row. The 10 year annual dividend growth rate is 13%/year. The last dividend increase was 5.60% to 57 cents/share. Analysts are expecting that Johnson & Johnson will earn $5.24/share in 2012. I expect that the quarterly dividend will exceed 61 cents/share in 2012. Yield: 3.50%

  • [By Steven Goldberg]

    Johnson & Johnson (symbol JNJ, price $85.12, yield 3.1%), the world's largest health care company, makes and sells pharmaceuticals, medical devices and diagnostics, as well as consumer products. The stock trades at 14 times analysts' estimated earnings for the coming 12 months. Few of J&J's patents are expiring soon, and the company has launched several new drugs that have the potential to become blockbusters. J&J just hiked its quarterly dividend by 8.2%, to 66 cents per share. The stock is, incidentally, a member of the Dow Jones industrial average. (Share prices and related data are as of April 26; the yield is based on a recently announced increase in the dividend rate.)

Best Medical Stocks To Invest In 2014: DENTSPLY International Inc.(XRAY)

DENTSPLY International Inc. designs, develops, manufactures, and markets dental consumable products, dental laboratory products, and dental specialty products worldwide. The company?s dental consumable products include dental sundries, such as dental anesthetics, prophylaxis pastes, dental sealants, impression materials, restorative materials, tooth whiteners, and topical fluoride; and small equipment, including high and low speed handpieces, intraoral curing light systems, dental diagnostic systems, and ultrasonic scalers and polishers used in dental offices for the treatment of patients. Its dental laboratory products comprise dental prosthetics, including artificial teeth, precious metal dental alloys, dental ceramics, and crown and bridge materials, as well as equipment, such as computer aided machining ceramic systems and porcelain furnaces used in the preparation of dental appliances by dental laboratories. The company?s dental specialty products consist of endodonti c instruments and materials, implants and related products, bone grafting materials, 3D digital implantology, and orthodontic appliances and accessories. Its customers include dentists, dental hygienists, dental assistants, dental laboratories, and dental schools. The company distributes its dental products directly to dental laboratories and dental professionals, as well as through distributors, dealers, and importers. DENTSPLY International Inc. was founded in 1983 and is headquartered in York, Pennsylvania.

Advisors' Opinion:
  • [By Newsy Stocks]

    DENTSPLY International Inc. (Nasdaq: XRAY) designs, develops, manufactures, and markets dental consumable products, dental laboratory products, and dental specialty products worldwide. The company has a total market capitalization of $4.8 billion and in the last 1-year the stock has given a return of 11.8 percent. The company has a dividend yield of 0.59 percent, and has a price of profit of 16. The stock is trading at a P/E of 17.46, higher than the industry’s average P/E of 15.81. The PEG ratio of the stock is 1.65 years, higher than industry’s PEG of 1.15 years. The average 5 years historical earnings growth is 7.50 percent and is expected to grow at 11.20 percent for the next 5 years. Its quarterly revenue growth is estimated at 6.83 percent. The stock has a P/B value of 2.30x percent. Analyst at Barrington Research has given it an outperform rating on $42.75 price target. Based on the price target the stock is trading at a dis count of 21.73 percent. XRAY was up 1.98 percent to $34.01 a share.

Best Medical Stocks To Invest In 2014: Hanger Orthopedic Group Inc.(HGR)

Hanger Orthopedic Group, Inc. engages in the ownership and operation of orthotic and prosthetic (O&P) patient care centers in the United States. The company provides orthotic and prosthetic patient care services. Its orthotics business include the design, fabrication, fitting, and maintenance of a range of standard and custom-made braces and other devices that provide external support to patients suffering from musculoskeletal disorders, such as ailments of the back, extremities or joints, and injuries from sports or other activities. The company?s prosthetics business comprise designing, fabricating, fitting, and maintaining custom-made artificial limbs for patients, who are without limbs as a result of traumatic injuries, vascular diseases, diabetes, cancer, or congenital disorders. It also distributes branded and private label O&P devices, as well as develops programs to manage various aspects of O&P patient care for insurance companies. In addition, the company manufac tures and distributes therapeutic footwear for diabetic patients in the podiatric market, as well as develops and provides specialized rehabilitation technologies and integrated clinical programs to rehabilitation providers. As of June 30, 2011, it operated approximately 675 patient-care centers in 45 states and the District of Columbia. The company, formerly known as Sequel Corporation, was founded in 1861 and is headquartered in Austin, Texas.

Advisors' Opinion:
  • [By Newsy Stocks]

    Hanger Orthopedic Group Inc. (NYSE: HGR) engages in the ownership and operation of orthotic and prosthetic (OP) patient care centers in the United States. The company has a total market capitalization of $601.8 million and in the last 1-year the stock has given a return of 34 percent. The company does not pay any dividend to its stockholders, and has a price of profit (POP) of 10. The stock is trading at a P/E of 20.92, higher than the industry’s average P/E of 14.15. The PEG ratio of the stock is 0.86 years, lower than industry’s PEG of 1 year. The average 5 years historical earnings growth is 25.60 percent and is expected to grow at 15 percent for the next 5 years. Its quarterly revenue growth is estimated at 17.12 percent. The stock has a P/B value of 1.54x percent. Analyst at Jefferies brokerage firm has given it a buy rating on $31.20 price target. Based on the price target the stock is trading at a discount of 42.44 percent. HGR was up 2.04 percent to $18.53 on Wednesday.