Best Investments In 2014

Back on March 13th I penned some less-than-well-received thoughts on Cardiome Pharma Corp. (NASDAQ:CRME). Basically, I was warning that CRME was just one stumble away from a fairly significant selloff. Given that so many traders were a fan of the biotech stock at the time, merely posing the possibility of a dip was something of a threat to my life and limb.

A week later, CRME has fallen from post-split-adjusted price of $2.09 to a low of $1.70, moving under the very floor at $1.99 that was under attack at the time.

I didn't chime in regarding on Cardiome Pharma on March 21st to gloat, however. Mostly a revisited CRME a week later to reverse my call on the stock after the pullback, pointing out that the company still had a compelling pipeline, and was still putting some things into place to keep its then-in-jeopardy NASDAQ listing. In fact, I specifically said the stock was almost a buy, explicitly saying "Though we may not have hit the bottom yet, speculators don't necessarily have to avoid Cardiome Pharma Corp. at all costs. Traders just need to look for clear signs that a bounce is forming (like a higher close and/or a higher trading range), as that bounce has a good chance of following through. The waiting for that sign is the hardest part."

Best Investments In 2014: Provident Energy Ltd. (PVX)

Provident Energy Ltd. engages in the natural gas liquids (NGLs) infrastructure and marketing business in Canada and the United States. The company involves in the extraction, processing, storage, transportation, and marketing of NGLs, as well as offers these services to third party customers. It also provides fractionation, storage, NGL terminalling, loading, and offloading services. The company was founded in 1993 and is headquartered in Calgary, Canada.

Best Investments In 2014: Cirrus Logic Inc.(CRUS)

Cirrus Logic, Inc., a fabless semiconductor company, develops high-precision analog and mixed-signal integrated circuits (ICs) for audio and energy markets worldwide. The company offers analog and mixed-signal audio converter and audio digital signal processor (DSP) products, which include analog-to-digital converters (ADCs); digital-to-analog converters (DACs); chips for integrating ADCs and DACs into an IC; digital interface ICs; volume controls; and digital amplifiers, as well as audio DSPs for consumer electronics applications. Its audio products are used in various consumer applications, including portable media players, smartphones, tablets, AVRs, DVD and Blu-ray disc players, home theater systems, set-top boxes, MP3 players, gaming devices, sound cards, and digital televisions; professional applications comprising digital mixing consoles, multitrack digital recorders, and effects processors; automotive applications consisting of amplifiers, satellite radio systems, telematics, and multi-speaker car-audio systems; and networked digital audio applications. The company also provides high-precision analog and mixed-signal ICs for energy control, energy measurement, and energy exploration applications; and ICs, board-level modules, and hybrids under the Apex Precision Power brand name for high-power pulse width modulation (PWM) and power amplifier applications; and proprietary products, which include ADCs, DACs, linear amplifiers, PWM amplifiers, and amplifier ICs; and system reference designs. Its energy products are used in digital utility meters, power supplies, lighting ballasts, motor control, energy exploration, and high-power systems. The company sells its products primarily to through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was founded in 1984 and is headquartered in Austin, Texas.

Advisors' Opinion:

• [By Selena Maranjian]

  It's not just the overall stock market today that's volatile: Individual stocks can be even more zigzaggy. Consider audio-chip maker Cirrus Logic (NASDAQ: CRUS  ) , which supplies many of Apple's (NASDAQ: AAPL  ) iDevices. Between April 16 and April 18 of this year, the stock tanked by more than 17%, and it lost about 20% on May 23. Why? Well, about 90% of its revenue is tied to Apple, and Apple's position in the stock market today isn't what it used to be, with Steve Jobs gone, growth slowing, and margins being pressured. In mid-April, Cirrus warned of disappointing upcoming results, and got punished for that. In May, management cited profit-margin pressures of its own, along with competition and a maturing smartphone environment.

• [By Rick Munarriz]

  That March 4 low held until today, and a few factors are weighing on the hit.

  DIGITIMES�-- the Asian tech publication that's well connected to Apple's suppliers -- is reporting that iPad shipments may dip by as much as 30% sequentially. Upstream sources are telling DIGITIMES that demand has been softening for the smaller tablet that was an initial hit during the holiday season. Cirrus Logic (NASDAQ: CRUS  ) warned of a big inventory charge in the quarter. As the company that provides audio chips in Apple's iPhone, the news is being interpreted as soft demand for Apple's iconic smartphone. Samsung -- the biggest thorn in Apple's side when it comes to smartphones -- announced this morning that its Galaxy S4 will be available through seven stateside wireless carriers later this month. The bar-raising smartphone is powered by Google's Android. Many of the leading carriers were already starting to take pre-orders for the device, but it wasn't clear if it would hit the market this month or potentially early next month. Analysts at Bernstein Research and Goldman Sachs offered up earnings preview notes ahead of next week's quarterly report. As one might imagine, the tone is cautious.

  Expect the volatility to continue until Apple actually does report on Tuesday, and then, naturally the shares will move higher or lower based on the report and the tech bellwether's assessment of what its near-term future looks like.

• [By Dan Caplinger]

  Beyond the Dow, earnings also had a big impact. Cirrus Logic (NASDAQ: CRUS  ) has plunged nearly 14% after releasing preliminary figures for its just-ended fiscal fourth quarter. The major supplier for Apple cited "a decreased forecast for a high volume product" as justifying its warning for both the previous and current quarters, and a Wall Street analyst followed suit with a downgrade of Cirrus stock. Apple also dropped further, with its 4.7% decline leading the stock to flirt with the $400 level, which it hasn't breached since late 2011.

10 Best Value Stocks To Own For 2014: STARWOOD PROPERTY TRUST INC.(STWD)

Starwood Property Trust, Inc., a real estate investment trust, primarily focuses on originating, investing in, financing, and managing commercial mortgage loans and other commercial real estate debt investments, commercial mortgage-backed securities, and other commercial real estate-related debt investments. It also focuses to invest in commercial properties subject to net leases, residential mortgage loans, and residential mortgage-backed securities. SPT Management, LLC serves as the manager of Starwood Property Trust, Inc. The company qualifies as a real estate investment trust for federal income tax purposes and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. Starwood Property Trust was founded in 2009 and is headquartered in Greenwich, Connecticut.

Advisors' Opinion:

• [By Chris Hill]

  In this installment, our analysts discuss some of the day's big movers and shakers.�Shares of Level 3 Communications (NYSE: LVLT  ) rise after Deutsche Bank initiates coverage with a buy rating. Trading in Herbalife (NYSE: HLF  ) is halted after the company's auditor resigns. Cliffs Natural Resources (NYSE: CLF  ) gains ground on the news that inflation in China is slowing. And Starwood Property Trust (NYSE: STWD  ) declines after the real estate company announces a secondary stock offering.�

• [By Doug Fabian]

  This fund is pegged to the FTSE NAREIT All Mortgage Capped Index, a benchmark measure that includes top names in the space such as Annaly Capital (NLY), American Capital Agency Corp. (AGNC), Starwood Property Trust (STWD) and Two Harbors Investment Corp. (TWO).

• [By Amanda Alix]

  Other companies are currently mulling single-family REIT IPOs, too. Colony recently announced�that it plans to spin off its Colony American Homes, which owns over 9,500 homes with average monthly rents of $1,277. Barry Sternlicht, CEO of commercial mortgage investment REIT Starwood Property Trust (NYSE: STWD  ) has also said that he is seriously considering�spinning off his company's real estate holdings into a single-family REIT within the next few months.

Best Investments In 2014: Saks Incorporated(SKS)

Saks Incorporated operates retail stores in the United States. Its stores offer an assortment of fashion apparel, shoes, accessories, jewelry, cosmetics, and gifts. The company operates stores under the brand name of Saks Fifth Avenue (SFA) that are principally free-standing stores in shopping destinations or anchor stores in upscale regional malls. It also operates Saks Fifth Avenue OFF 5TH (OFF 5TH) stores, which are primarily located in upscale mixed-use and off-price centers. As of January 28, 2012, the company operated 46 SFA stores; and 60 OFF 5TH stores. Saks Incorporated also sells its products online at saks.com, as well as through catalogs. The company was founded in 1919 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Rich Duprey]

  The own of upscale retailer Lord & Taylor is adding another luxury nameplate to its portfolio. Canadian shop Hudson's Bay will buy Saks (NYSE: SKS  ) , the two retailers jointly announced, in a deal valued at about $2.9 billion, including debt.

• [By Andrew Marder]

  For a company that is putting up solid sales growth, has a great brand, and has seen its stock price rise more than 40% in the last 12 months, Saks (NYSE: SKS  ) didn't demand much of a premium. Hudson's Bay, the operator behind Lord & Taylor, picked up Saks for just $16 per share, representing a 4.5% bump to Friday's closing price.

• [By Paul Ausick]

  The only earnings reports of note since last Friday came from Saks Inc. (NYSE: SKS) which is trading down 0.2% at $15.99.

  Before markets open Tuesday morning we are scheduled to hear results from Perfect World Co. Ltd. (NASDAQ: PWRD), Urban Outfitters Inc. (NASDAQ: URBN), Barnes & Noble Inc. (NYSE: BKS) which announced a new video app today, Best Buy Co. Inc (NYSE: BBY) which is included in our preview of this week�� results from retailers, Dick�� Sporting Goods Inc. (NYSE: DKS), Home Depot Inc. (NYSE: HD), J.C. Penney Co. Inc. (NYSE: JCP), and Trina Solar Ltd. (NYSE: TSL).

• [By Chris Hill]

  Hertz (NYSE: HTZ  ) dips on good-not-great earnings. Candian retailer Hudson's Bay buys Saks (NYSE: SKS  ) for $2.4 billion. Wynn Resorts' (NASDAQ: WYNN  ) second-quarter profit gets hit with one-time charges. Omnicom Group (NYSE: OMC  ) merges with Publicis Group to form the world's largest advertising and marketing firm. In this segment from Investor Beat, Motley Fool analysts Bill Barker and Andy Cross discuss four stocks making moves on Tuesday.

Best Investments In 2014: Family Dollar Stores Inc.(FDO)

Family Dollar Stores, Inc. operates a chain of self-service retail discount stores primarily for low and middle income consumers in the United States. The company offers consumables, including household chemicals, paper products, candy and snack products, health and beauty aids, hardware and automotive supplies, and pet food products and supplies; and home products, which comprise domestics, housewares, giftware products, and home decor products. It also provides apparel products and accessories consisting of men?s and women?s clothing products, boys? and girls? clothing products, infants? clothing products, shoes, and fashion accessories; and seasonal products and electronics, such as toys, stationery and school supplies, seasonal goods, and personal electronics. As of August 11, 2011, the company operated approximately 7,000 stores in rural and urban settings across 44 states. Family Dollar Stores, Inc. was founded in 1959 and is headquartered in Matthews, North Carolina .

Advisors' Opinion:

• [By Brendan Byrnes]

  Brendan: Not a problem at all. What about the surprising amount of dollar-store companies that are public? You have Family Dollar (NYSE: FDO  ) , Dollar Tree (NASDAQ: DLTR  ) , Dollar General (NYSE: DG  ) . You mention, in particular, Family Dollar, which is the lowest market cap out of all of those, as doing the best, an exceptional company. Why?

• [By Casey Kelly-Barton]

  While the overall national and global impact of the shutdown will take time to analyze, some big businesses have been up-front about the immediate impact. Family Dollar Stores (NYSE: FDO  ) says the shutdown hit its sales right away (although the company is in growth mode), and Stanley Black & Decker and W.W. Grainger�voiced profit and sales concerns, respectively. The shutdown also created an FCC review backlog for new products from Apple, Google and other tech businesses.

• [By Joseph Hogue]

  Between Sept. 14 and Nov. 15 last year, as investors rushed to companies with solid, government-proof revenue, Family Dollar (NYSE: FDO) gained 2.6%, and Kellogg (NYSE: K) surged 7.4%.