Wednesday, October 1, 2014

Top 5 Rising Stocks To Own For 2014

With shares of Sprint Nextel (NYSE:S) trading around $7, is S an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Sprint Nextel�offers a range of wireless and wireline communications products and services to individual consumers, businesses, government subscribers, and resellers.�The company offers wireless and wireline voice and data transmission services to subscribers in all 50 states, Puerto Rico, and the United States Virgin Islands under the Sprint corporate brand, which includes its retail brands of Sprint, Nextel, Boost Mobile, Virgin Mobile, and Assurance Wireless. An increasing number of consumers are looking for improved ways to stay connected with friends and family. As the mobile expansion trend continues, look for Sprint Nextel to see growing profits.

T = Technicals on the Stock Chart are Mixed

Sprint Nextel stock has been hit with a significant amount of selling pressure over the last several years. The stock has formed a value base in recent times and is now trying to continue higher. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Sprint Nextel is trading above its rising key averages which signal neutral to bullish price action in the near-term.

Best Recreation Stocks To Invest In Right Now: H&E Equipment Services Inc.(HEES)

H&E Equipment Services, Inc. operates as an integrated equipment services company. The company rents, sells, and provides parts and service support for hi-lift or aerial work platform equipment, crane, earthmoving equipment, and industrial lift truck categories. It offers heavy construction and industrial equipment for rent on a daily, weekly, and monthly basis. As of December 31, 2011, the company?s fleet consisted of 17,538 pieces of equipment. It also sells new heavy construction and industrial equipment in various categories. In addition, the company sells used equipment from its rental fleet, as well as inventoried equipment that is acquired through trade-ins from its customers and selective purchases; and new and used parts. Further, it provides maintenance and repair services; and ongoing preventative maintenance services and warranty repairs, as well as offers ancillary equipment support activities, including transportation, hauling, parts shipping, and loss damag e waivers. The company provides its services to industrial and commercial companies, construction contractors, manufacturers, public utilities, municipalities, and maintenance contractors, as well as for other industrial accounts. As of February 28, 2012, it operated a network of 65 full-service facilities, serving approximately 29,800 customers across 22 states in the West Coast, Intermountain, Southwest, Gulf Coast, Southeast, and Mid-Atlantic regions of the United States. The company markets its equipment rental services, and new and used equipment through its sales force. H&E Equipment Services, Inc. was founded in 1961 and is headquartered in Baton Rouge, Louisiana.

Advisors' Opinion:
  • [By Seth Jayson]

    Margins matter. The more H&E Equipment Services (Nasdaq: HEES  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong H&E Equipment Services's competitive position could be.

  • [By Peter Graham]

    The Q2 2014 earnings report for equipment rental stock United Rentals, Inc (NYSE: URI), a peer or competitor of Essex Rental Corp (NASDAQ: ESSX) and H&E Equipment Services, Inc (NASDAQ: HEES), is scheduled for after the market closes on Wednesday. Aside from the United Rentals earnings report, it should be said that the Essex Rental Corp reported Q4 2013 earnings on May 7th while the estimated release date for the H&E Equipment Services, Inc Q2 2014 earnings report is August 4th. However, United Rentals��shares rose after its last earnings report plus analysts have issued bullish research notes since then.

Top 5 Rising Stocks To Own For 2014: Campus Crest Communities Inc (CCG)

Campus Crest Communities, Inc., incorporated on March 1, 2010, is a self-managed, self-administered and vertically-integrated developer, builder, owner and manager of purpose-built student housing properties in the United States. The Company operates in two segments: student housing operations and development, construction and management services. It owns the general partner interest and owns limited partner interests in Campus Crest Communities Operating Partnership, LP (the Operating Partnership). It holds substantially all of its assets and conducts substantially all of its business, through the Operating Partnership. As of December 31, 2010, it owned interests in 27 operating student housing properties containing approximately 5,048 apartment units and 13,580 beds. Twenty-one of its properties, containing approximately 3,920 apartment units and 10,528 beds, are wholly owned. On October 19, 2010, it acquired the remaining interest in Campus Crest at San Marcos, LLC, which owns The Grove at San Marcos, from HSRE. In January 2012, the Company acquired 50.1% interests in The Grove. On December 27, 2013, the Company closed its sale of four wholly owned student housing properties. In January 2014, Campus Crest Communities Inc and Beaumont Partners joint venture partnership acquired the 488-room, 22-story Holiday Inn Midtown in Montreal, Quebec.

As of December 31, 2010, the average occupancy for its 27 properties was approximately 88%. Its properties are primarily located in medium-sized college and university markets. As of December 31, 2010, the Company were party to one joint venture arrangement with HSRE, in which it owns a 49.9% interest.

Student Housing Operations

The Company�� student housing operations are consisted of rental and other service revenues, such as application fees, pet fees and late payment fees. In August 2010, the Company opened three additional properties that were owned by the same real estate venture.

Development, Construc! tion and Management Services

The Company provides development and construction services to unconsolidated joint ventures in which it has an ownership interest. The Company acts as a general contractor on all of its construction projects. In addition to its wholly owned properties, all of which are managed by the Company, it also provides management services to uncombined joint ventures in which, it has an ownership interest.

Advisors' Opinion:
  • [By Jonas Elmerraji]

    2013 is panning out to be a rough year for Campus Crest Communities (CCG) -- shares of the small-cap student housing REIT have slid 12.7% since the calendar flipped over to January. While that sounds bad enough as it is, it's actually 31% underperformance vs. the S&P 500. And a quick glance at the chart makes it pretty clear to see why.

    CCG is stuck in a textbook downtrend right now, bouncing between trendline resisatnce to the upside and a parallel support level below. You don't have to be an expert technical analyst to figure out where CCG's high probability price action is from here; it's down. Trendline resistance has acted as a ceiling for shares on the last four tests in 2013 – and with shares hitting their head on that resistance level this week, now's the optimal time to sell (or short) this REIT.

    If you're looking for an opportunity to buy CCG, you could be in for a long wait. But the 50-day moving average has been a pretty good proxy for resistance since the start of the summer. I'd recommend waiting for that line to get broken before even thinking about doing anything but selling this stock. Until then, it's toxic.

Top 5 Rising Stocks To Own For 2014: Village Super Market Inc.(VLGEA)

Village Super Market, Inc., together with its subsidiaries, operates a chain of supermarkets in the United States. The company?s superstores feature specialty departments, such as home meal replacement, on-site bakery, and expanded delicatessen that includes prepared food, natural and organic food, ethnic and international food, seafood sections, as well as pharmacies and salad bars. Its superstores also offer non-food items, including cut flowers, health and beauty aids, greeting cards, and small appliances. As of December 16, 2011, the company operated a chain of 28 supermarkets under the ShopRite name in New Jersey, Maryland, and eastern Pennsylvania. Village Super Market, Inc. was founded in 1933 and is based in Springfield, New Jersey.

Advisors' Opinion:
  • [By Geoff Gannon]

    Next example: same year (2000), same state (New Jersey), same product (food), different company ��Village Supermarket (VLGEA).

    At the time, these were the company�� last five years of (diluted) earnings per share:

  • [By Geoff Gannon]

    Line up the return on capital lines ��for the last 10 years ��for Arden, Village (VLGEA), Weis, Harris Teeter (HTSI), and Kroger and you��l see that the grocer this analyst thinks is unique clearly isn��. Other grocers earn their cost of capital. They just aren�� as well known.

  • [By Geoff Gannon]

    For example, a company involved in a mundane business like running hair salons ��like Regis (RGS), dentist offices ��like Birner Dental (BDMS), grocery stores ��like Village Supermarket (VLGEA), or garbage dumps ��like Waste Management (WM), may be easy to estimate as essentially a no-growth business.

Top 5 Rising Stocks To Own For 2014: Methode Electronics Inc (MEI)

Methode Electronics, Inc., incorporated on April 27, 1966, is a manufacturer of component and subsystem devices with manufacturing, designs and testing facilities in China, Egypt, Germany, India, Lebanon, Malta, Mexico, the Philippines, Singapore, Switzerland, the United Kingdom and the United States. The Company operates in four segments: automotive, interconnect, power products, and other. The Company designs, manufactures and markets devices employing electrical, radio remote controls, electronic, wireless and sensing technologies. The Company's components are found in the primary end markets of the aerospace, appliance, automotive, construction, consumer and industrial equipment, communications, including information processing and storage, networking equipment, wireless and terrestrial voice/data systems, rail and other transportation industries.

Automotive

The Company�� automotive segment supplies electronic and electro-mechanical devices and related products to automobile original equipment manufacturers, (OEMs), either directly or through their tiered suppliers. The Company's products include control switches for electrical power and signals, connectors for electrical devices, integrated control components, switches and sensors that monitor the operation or status of a component or system, and packaging of electrical components.

Interconnect

The interconnect segment provides a variety of copper and fiber-optic interconnect and interface solutions for the aerospace, appliance, commercial, computer, construction, consumer, material handling, medical, military, mining, networking, storage, and telecommunications markets. Solutions include conductive polymers, connectors, custom cable assemblies, industrial safety radio remote controls, optical and copper transceivers, personal computer and express card packaging and terminators, solid-state field effect interface panels, and thick film inks. Services include the design and installation of f! iber optic and copper infrastructure systems, and manufacturing active and passive optical components.

Power products

The power products segment manufactures braided flexible cables, current-carrying laminated bus devices, custom power-product assemblies, high-current low voltage flexible power cabling systems and powder coated bus bars that are used in various markets and applications, including aerospace, computers, industrial and power conversion, inverters and battery systems, insulated gate bipolar transistor solutions, military, telecommunications, and transportation.

Other

The other segment includes a designer and manufacturer of magnetic torque sensing products, and independent laboratories that provide services for qualification testing and certification, and analysis of electronic and optical components.

Advisors' Opinion:
  • [By Ben Levisohn]

    Methode Electronics (MEI) has gained 33% to 23.43 today after the company reported better revenue and profit numbers than even the most positive analyst had expected. It also raised its guidance well above previously announced levels.

    AFP/Getty Images

    The component maker reported a profit of 36 cents a share, above forecasts for 21 cents, and sales of $167.3� million dollars, beating forecasts for $148.5 million. It also said that it expected full-year earnings to fall in a range of $1.40 to $1.60, well above analyst forecasts for $1.05.

    Baird’s David Leiker and Joseph Vruwink call it a “breakout quarter.” They write:

    Upside across all segments and all line items with 41% revenue surge coming in 10% above expectations. One-half of the beat from revenue with balance split among gross margin, SGA and lower tax rate. Launches going very well, continuing the performance seen in April quarter.

    Automotive results accounted for two-thirds of the upside at the pre-tax line. The upside was spread between stronger revenues ($0.03), gross profits ($0.03) and expense control ($0.02). While North American sales improved 86% on the K2XX launch (we assumed 56% growth), international revenues also contributed favorably with 26% growth in Europe (new business and Ford�� (F) recovery) and 22% growth in Asia.

    Competitor AVX Corp. (AVX) has gained 1.1% to $12.96, while Molex (MOLX) has dropped 0.2% to $29.28 and Amphenol (APH) has ticked up 0.3% to $76.32.

  • [By Monica Gerson]

    Methode Electronics (NYSE: MEI) is estimated to report its Q1 earnings at $0.40 per share on revenue of $193.69 million.

    The Cooper Companies (NYSE: COO) is expected to post its Q3 earnings at $1.90 per share on revenue of $443.65 million.

  • [By gurujx]

    Methode Electronics Inc. (MEI): CFO Douglas A. Koman Sold 60,000 Shares

    CFO�Douglas A. Koman�sold 60,000 shares of MEI stock on 12/31/2013 at the average price of $34.13. Douglas A. Koman owns at least 203,418 shares after this. The price of the stock has increased by 3.34% since.

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