The torrid rise in margin debt has everyone talking these days. Why? Bears take it as a sign that the the stock market is ripe for a correction.
Barclays U.S. Equity Strategist Jonathan Glionna isn�� waving a red flag.
In our opinion, a sharp increase in the use of margin debt in relation to the size of the market is a warning sign, but the steady increase seen over the past five years is not��argin debt in relation to market capitalization has been steadily increasing since the early 1990s. We attribute this to greater participation from leveraged investors in the market during the past 25 years and believe it is a structural shift higher��/p>
Granted, he isn�� expecting big returns anytime soon. Glionna�� sees the S&P 500 rising at a pace in line with profit growth. That puts the index at 1,975 in 2014 and 2,100 in 2015, up 9% and 8% respectively.
Looking for better returns? That will require better revenue growth, which Glionna calls ��he missing ingredient.��He writes:
Best Prefered Stocks To Watch For 2015: Gray Fox Petroleum Corp (GFOX)
Gray Fox Petroleum Corp., incorporated on September 22, 2011, is a domestic oil and gas exploration and development company. The Company focuses on the acquisition and exploration of oil and natural gas properties in the Western United States.
The Company has 100% working interest and an 82% net revenue interest in the 32,723 acre West Ranch Prospect. The Company�� West Ranch Prospect is located in the Butte Valley Oil Play Region of north central Nevada in Elko and White Pine Countries, which has produced over 50 million barrels of oil in Nevada from structures and reservoir horizons similar to those under the West Ranch Prospect. The prospect consists of 22 Federal leases in the Butte Valley Oil Play Region.
Advisors' Opinion:- [By Peter Graham]
On Friday, small cap mining stocks Maverick Minerals Corp (OTCMKTS: MVRM) and Liberty Coal Energy Corp (OTCMKTS: LBTG) plus oil stock Gray Fox Petroleum Corp (OTCBB: GFOX) sank 30.9%, 16.67% and 11.2%, respectively. However, only one of these stocks appears to have been the subject of some kind of paid promotion in the form of an investment in some shares. So will these three small cap mining or oil stocks keep coming up empty for investors this week? Here is a closer look:
Best Rising Companies To Watch In Right Now: Hill International Inc. (HIL)
Hill International, Inc. provides project management and construction claims services worldwide. It operates through two segments, Project Management and Construction Claims. The Project Management segment offers construction and project management services, including program management, project management, construction management, project management oversight, troubled project turnaround, staff augmentation, estimating and cost management, project labor agreement consulting, and management consulting, as well as commissioning, labor compliance, and other services. It manages and undertakes construction process, including planning, scheduling, estimating, budgeting, design review, constructability analyses, value engineering, regulatory compliance, development of project procedures, procurement, project reporting, expediting, inspection, quality assurance/quality control, safety oversight, contract administration, change order processing, and claims management on behalf of project owners and developers, as well as on-site management of contractors, subcontractors, and suppliers. The Construction Claims segment provides claims preparation, analysis and review, litigation support, cost/damages assessment, delay/disruption analysis, contract review and adjudication, risk assessment, lender advisory, and expert witness testimony services to clients. It advises clients for preventing or resolving claims and disputes based upon schedule delays, cost overruns, and other problems on construction projects. The company serves the United States and other national governments, state and local governments, and their agencies, as well as clients in the private sector. Hill International, Inc. was founded in 1976 and is headquartered in Marlton, New Jersey.
Advisors' Opinion:- [By Lisa Levin]
Hill International (NYSE: HIL) shares surged 11.11% to reach a new 52-week high of $5.00 as the company surpassed $1 billion in total backlog at the end of 2013.
- [By Laura Brodbeck]
Notable earnings releases expected on Monday include:
United Natural Foods(NASDAQ: UNFI) is expected to report second quarter EPS of $0.56 on revenue of $1.64 billion, compared to last year�� EPS of $0.46 on revenue of $1.45 billion. Urban Outfitters(NASDAQ: URBN) is expected to report fourth quarter EPS of $0.55 on revenue of $928.43 million, compared to last year�� EPS of $0.56 on revenue of $856.83 million. Hill International(NYSE: HIL) is expected to report fourth quarter EPS of $0.01 on revenue of $134.74 million, compared to last year�� loss of $0.04 per share on revenue of $110.77 million.Economics
Best Rising Companies To Watch In Right Now: Ferchem Egypt Fertilizers and Chemicals (FERC)
Ferchem Egypt Fertilizers and Chemicals is an Egypt-based company engaged in the establishment and operation of a factory for mixing and packaging of chemical fertilizers, pesticides, insecticides and hormones, as well as other agricultural related activities. Advisors' Opinion:- [By Jim Jubak]
Cheniere also has received other good news on Corpus Christi. To get a permit for the unrestricted export of liquefied natural gas, a facility has to win approval from the US Department of Energy (DOE) and the Federal Energy Regulatory Commission (FERC). DOE has accelerated its permit process, but FERC approval has become a major bottleneck, since the commission needs to coordinate studies from several other agencies before it can complete its review. Cheniere has recently received a scheduling notice from FERC, which looks to put that facility on track for a permit ruling by the end of 2014 or early 2015.
Best Rising Companies To Watch In Right Now: Axxess Unlimited Inc (AXXU)
Axxess Unlimited, Inc., incorporated on June 8, 2000, is the holding company for the Axxess family of companies. The Axxess family of companies includes both vertically-integrated operating businesses and horizontally-integrated companies with each supported by a common software technology - the Axxess RISE Platform. The Company provides next-generation business intelligence for a range of businesses and organizations. It provides information-driven business solutions through interactive marketing, interactive technologies, application and product development, customer relationship management, business intelligence, portals and collaboration, and infrastructure solutions. Its companies include Axxess Digital (AxxuD), Axxess Apps (AxxuA) and Axxess Brands (AxxuB).
Axxess Digital
AxxuD is an interactive digital agency company. The Company relies on the core logic of the Axxess Unlimited RISE platform.
Axxess Apps
AxxuA is a software development company. The focus of AxxuA includes: enterprise applications, custom applications, cloud applications and mobile applications. The Company has software-as-a-service (SaaS) solutions and custom and mobile products available in the government services, automobile dealership, medical and consumer goods sectors.
Axxess Brands
AxxuB is a marketer and manufacturer of specialty brands in better-for-you and indulgent categories under a variety of Company owned and licensed brand names. AxxuB licenses brands and provides outsource management.
Advisors' Opinion:- [By James E. Brumley]
If the names Axxess Unlimited Inc. (OTCMKTS:AXXU) and MagneGas Corporation (NASDAQ:MNGA) ring a bell, it might be because yours truly posted some bullish thoughts on both names earlier this week. Although neither small cap stock had done everything they needed to do in order become a fully bullish trade at the time, both MNGA and AXXU have cleared those hurdles in the meantime. So, in case you forgot (or in case you missed the first look), an updated review of Axxess Unlimited and MagneGas is merited.
- [By James E. Brumley]
A week and a half ago, yours truly penned some bullish thoughts on Axxess Unlimited Inc. (OTCMKTS:AXXU). Not too many traders read that take, and/or if they did, they didn't seem to care. The response to the commentary was non-existent (good or bad), and there was no sudden rush to go out and buy AXXU. Today's second look may have a different outcome.
Best Rising Companies To Watch In Right Now: Extreme Networks Inc.(EXTR)
Extreme Networks, Inc., together with its subsidiaries, develops and markets network infrastructure equipment and services to businesses, hospitals, schools, hotels, telecommunications companies, and government agencies. It offers Summit product family of stackable Ethernet switching systems that provide 10 megabit to 40 gigabit connection speeds, various physical presentations, and options to deliver power-over-Ethernet or unpowered standard Ethernet ports; and Black Diamond family of modular Ethernet switching systems, which deliver modular or chassis-based Ethernet connectivity solutions for enterprises, data centers, and service providers. The company also offers SummitWM family of wireless network controllers and associated Altitude access points to enable the deployment of nomadic and mobile converged network applications; and RidgeLine management software system that includes features tailored to data center, campus, and service provider management. It has strategic relationships with Motorola Inc., Netgear, Inc., Ericsson Enterprise AB, and Nokia Siemens Networks. The company sells its products through distributors, resellers, and field sales organizations. It operates in the United States, Canada, Mexico, Japan, Central America, Europe, the Middle East, Africa, South America, and the Asia Pacific. Extreme Networks, Inc. was founded in 1996 and is headquartered in Santa Clara, California.
Advisors' Opinion:- [By Jake L'Ecuyer]
Extreme Networks (NASDAQ: EXTR) shares tumbled 15.38 percent to $5.96 after the company reported downbeat Q2 results and issued a weak Q3 profit forecast.
- [By Rich Bieglmeier]
We like to take it one step further than just buying, iStock specifically targets insiders with a history of making the correct call. Extreme Networks Inc. (EXTR) Director, Maury Austin is taking a second bite of the apple.
- [By Jake L'Ecuyer]
Extreme Networks (NASDAQ: EXTR) shares tumbled 17.33 percent to $5.82 after the company reported downbeat Q2 results and issued a weak Q3 profit forecast.
Best Rising Companies To Watch In Right Now: Spirit Realty Capital Inc (SRC)
Spirit Realty Capital, Inc., incorporated on August 14, 2003, is a self-administered and self-managed real estate investment trust (REIT). The Company�� operations are carried out through Spirit Realty, L.P. (the Operating Partnership). The Company invests in single-tenant, operationally essential real estate throughout the United States that is leased on a long-term, triple-net basis primarily to tenants engaged in retail, service and distribution industries. Single-tenant, operationally essential real estate consists of properties that are generally free-standing, commercial real estate facilities where its tenants conduct retail, service or distribution activities. as of December 31, 2012, the Company�� portfolio of 1,122 owned properties were leased to approximately 165 tenants. In July 2013, the Company merged with Cole Credit Property Trust II.
The Company�� tenants operate in 18 different industries, which include medical/other office properties; recreational properties; educational properties; automotive dealers, parts and services facilities; industrial properties; building material suppliers; movie theatres; restaurants-casual dining; specialty retail properties; restaurants-quick service, and general and discount retail properties. The Company�� properties are geographically diversified across 47 states, with only 4 states contributing more than 5.0% of its annual rent. As of December 31, 2012, approximately 98.0% of its lease and loan revenues were attributable to long-term leases. As of December 31, 2012, the Company leases 181 properties to Shopko/Pamida, 179 of which are leased pursuant to three master leases.
Advisors' Opinion:- [By Rich Duprey]
Commercial real estate investor�Spirit Realty Capital (NYSE: SRC ) announced today its second-quarter dividend of $0.3125�per share, the same rate it paid last quarter. After going public in September, it began making payouts to investors in January.
- [By Rich Duprey]
With Spirit Realty Capital (NYSE: SRC ) set to merge with�Cole Credit Property Trust II in the third quarter, the commercial real estate REIT announced yesterday�it would pay a pro-rated dividend for the third quarter based on a quarterly payout of $0.3125 per share, the same rate it paid last quarter. Spirit only went public last September and began paying dividends in January.
Best Rising Companies To Watch In Right Now: Sevcon Inc (SEV)
Sevcon, Inc., incorporated on November 23, 1987, is engaged in the electronic controls business. Through wholly owned subsidiaries located in the United States, England, France, South Korea and Japan, the Company designs and sells, under the Sevcon name, microprocessor based controls for zero emission and hybrid electric vehicles. The controls are used to vary the speed and movement of vehicles, to integrate specialized functions and to prolong the shift life of vehicles��power source. It operates in two segments: electronic controls and capacitors. The electronic controls segment produces microprocessor based control systems for zero emission and hybrid electric vehicles. The capacitor segment produces special metalized film capacitors for sale to electronic equipment manufacturers.
The Company�� customers are manufacturers of on-road, off-road and industrial vehicles including automobiles, motorcycles, buses, fork lift trucks, aerial lifts, mining vehicles, airport ground support vehicles, utility vehicles, sweepers and other battery powered vehicles. Through another subsidiary located in the United Kingdom, the Company manufactures special metalized film capacitors for electronics applications. Approximately 94% of the Company�� revenues, during the fiscal year ended September 30, 2013, were derived from the controls business and 6% from the capacitor business.
The Company competes with Kollmorgen, Sauer Danfoss, Hitachi, the motors division of General Electric, Curtis Instruments Inc., Zapi SpA. and Iskra.
Advisors' Opinion:- [By CRWE]
Sevcon, Inc. (Nasdaq:SEV), a global manufacturer of drivetrain controls for electric and hybrid vehicles, reported its selection by Brammo, Inc., a global leader in the electric motorcycle industry, to supply Gen4 motor controllers for Brammo’s Empulse and Empulse R 100% electric motorcycles, which were launched on May 8, 2012.
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