J.C. Penney� (NYSE: JCP ) potentially destroyed huge amounts of shareholder wealth last week with a 44% dilution of shareholders in what could be management's last chance to return the company to relevance with close to $1 billion in new cash. Just a few weeks prior,�Clean Energy Fuels� (NASDAQ: CLNE ) issued $220 million in convertible notes, paying 5.25% interest to bondholders while also seeing CEO Andrew Littlefair buy almost $1.5 million in shares.�
While dilution through new share offerings and the accumulation of debt can both be detrimental, but not always. What was the result of J.C. Penney and Clean Energy Fuels' recent actions, and what should shareholders look for?
Paying for growth
Clean Energy is in full growth mode with its "America's Natural Gas Highway," and its use of convertible notes to raise capital, while not directly dilutive, still carries the potential to dilute shareholders if the notes are converted to shares. Per the press release:
10 Best Heal Care Stocks To Own Right Now: U.S. Physical Therapy Inc.(USPH)
U.S. Physical Therapy, Inc., through its subsidiaries, operates outpatient physical and occupational therapy clinics in the United States. Its clinics provide pre-and-post operative care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and neurological-related injuries. The company also offers physician services to third parties; and operates clinics, which specialize in the outpatient, non-surgical treatment of osteo arthritis degenerative joint disease and other musculoskeletal conditions. As of December 31, 2011, it operated 416 clinics in 42 states; and managed 15 physical therapy facilities for third parties, including physicians. The company focuses its marketing efforts on physicians comprising orthopedic surgeons, neurosurgeons, physiatrists, internal medicine physicians, podiatrists, occupational medicine physicians, and general practitioners. U.S. Physical Therapy, Inc. was founded in 1 990 and is based in Houston, Texas.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on US Physical Therapy (NYSE: USPH ) , whose recent revenue and earnings are plotted below.
Top 10 Clean Energy Companies To Watch For 2014: New Residential Investment Corp (NRZ)
New Residential Investment Corp., incorporated on September 26, 2013, is a real estate investment trust. The Company focuses on investing in, and actively managing, investments related to residential real estate. On May 15, 2013, Newcastle Investment Corp. announced that the spin-off of New Residential Investment Corp.
The Company is managed by an affiliate of Fortress Investment Group LLC, a global investment management. The Company primarily target investments in excess mortgage servicing rights, residential mortgage backed securities, residential mortgage loans and other related investments.
Advisors' Opinion:- [By Lauren Pollock]
New Residential Investment Corp.(NRZ) and other investors agreed to buy about $3.2 billion of servicing advances from Nationstar Mortgage Holdings Inc.(NSM), part of Nationstar’s plan to reconfigure its acquisition structure. The advances relate to nonagency residential mortgage loans with an unpaid principal balance of about $58 billion. Nationstar shares rose 4.1% to $42.50 in light premarket trading.
Top 10 Clean Energy Companies To Watch For 2014: Transcept Pharmaceuticals Inc.(TSPT)
Transcept Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of proprietary products that address therapeutic needs in the field of neuroscience. Its principal product is the Intermezzo, a low dose sublingual formulation of zolpidem as a sleep aid for use in the middle of the night at the time a patient awakens and has difficulty returning to sleep. The company has a collaboration agreement with Purdue Pharmaceutical Products, L.P. for the commercialization of Intermezzo in the United States. It is also developing TO-2061, a low dose ondansetron adjunctive therapy, which is in Phase II study for patients with obsessive-compulsive disorder. The company was founded in 2002 and is based in Point Richmond, California.
Advisors' Opinion:- [By Roberto Pedone]
Transcept Pharmaceuticals (TSPT) is a specialty pharmaceutical company focused on the development and commercialization of proprietary products that address important therapeutic needs in neuroscience. This stock closed up 6% to $2.98 in Thursday's trading session.
Thursday's Range: $2.81-$2.99
52-Week Range: $2.77-$6.77
Thursday's Volume: 138,000
Three-Month Average Volume: 158,095From a technical perspective, TSPT spiked sharply higher here right above some near-term support at $2.77 and back above its 50-day moving average at $2.95 with decent upside volume. This move is quickly pushing shares of TSPT within range of triggering a major breakout trade. That trade will hit if TSPT manages to take out some near-term overhead resistance levels at $3.16 to $3.25 with high volume. If that breakout hits, it would also push TSPT outside of a large consolidation pattern the stock has been in for the last three months.
Traders should now look for long-biased trades in TSPT as long as it's trending above some key near-term support at $2.77 and then once it sustains a move or close above those breakout levels with volume that hits near or above 158,095 shares. If that breakout triggers soon, then TSPT will set up to re-test or possibly take out its next major overhead resistance levels at $4.23 to its 200-day moving average at $4.50. Any high-volume move above those levels will then put $4.89 to $5 into range for shares of TSPT.
- [By Roberto Pedone]
An under-$10 biotech stock that's trending very close to triggering a near-term breakout trade is Transcept Pharmaceuticals (TSPT), which is focused on the development and commercialization of proprietary products that address important therapeutic needs in neuroscience. This stock has been hit hard by the bears so far in 2013, with shares off by 36%.
If you take a look at the chart for TSPT, you'll notice that this stock has been trending sideways inside of a big consolidation pattern for the last three months, with shares moving between $2.71 on the downside and $3.25 on the upside. Shares of TSPT are counter-trending higher today in the face of a very weak tape. This move is starting to push the stock within range of triggering a near-term breakout trade above the upper-end of its sideways trading chart pattern.
Traders should now look for long-biased trades in TSPT if it manages to break out above its 50-day moving average at $2.91 a share and then once it takes out more near-term overhead resistance levels at $3.16 to $3.25 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 138,444 shares. If that breakout triggers soon, then TSPT will set up to re-test or possibly take out its next major overhead resistance levels at $4.23 to its 200-day at $4.39 a share. If those levels get taken out with volume, then TSPT could easily hit its next major overhead resistance levels at $5 to $5.50 a share.
Traders can look to buy TSPT off weakness to anticipate that breakout and simply use a stop that sits right below its recent low of $2.71 a share. One can also buy TSPT off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Top 10 Clean Energy Companies To Watch For 2014: Powershares Golden Dragon (PGJ)
PowerShares Golden Dragon Halter USX China Portfolio is based on the Halter USX China Index. The Index is comprised of the United States listed securities of companies, which derive a majority of their revenue from the People's Republic of China. The fund was incepted on December 9, 2004.
The sectors covered by the investment include consumer discretionary, consumer staples, energy, financials, healthcare, industrials, information technology, materials, telecommunications and utilities. PowerShares Capital Management LLC provides investment management to the Fund.
Advisors' Opinion:- [By MONEYMORNING.COM]
PowerShares Golden Dragon China Portfolio (NYSE: PGJ) has a position in more than 70 companies, and its holdings are all U.S.-listed companies that generate most of their revenue in China. For that reason, Alibaba is the perfect candidate to join PGJ's holdings once it starts trading on the New York Stock Exchange.
- [By Robert Martin]
With that in mind, here are four of the best emerging market ETF picks: A China ETF, an India ETF, and two other ETFs that track broad indices like the MSCI Emerging Markets Index.
PowerShares Gold Dragon Halter USX China Portfolio (PGJ)Expense Ratio: 0.7%
Top 10 Clean Energy Companies To Watch For 2014: Wright Medical Group Inc.(WMGI)
Wright Medical Group, Inc., an orthopedic medical device company, engages in the design, manufacture, and marketing of devices and biologic products for the extremity, hip, and knee repair and reconstruction. The company also provides surgical solutions for the foot and ankle market. The reconstructive devices are used to replace knee, hip, and other joints and bones that are deteriorated or damaged through disease or injury; and biologics are used to replace damaged or diseased bone to stimulate bone growth and to provide other biological solutions for surgeons and their patients. Wright Medical Group, Inc. offers products in the extremity reconstruction, biologics, knee reconstruction, and hip reconstruction market sectors. It sells its products primarily through a network of employee sales representatives and independent sales representatives in the United States, as well as through a combination of employee sales representatives, independent sales representatives, and stocking distributors in Europe, the Middle East, Africa, Latin America, Asia, Australia, and Canada. The company was founded in 1950 and is headquartered in Arlington, Tennessee.
Advisors' Opinion:- [By CRWE]
Wright Medical Group, Inc. (NASDAQ:WMGI), a global orthopaedic medical device company, will be participating in the Morgan Stanley Global Healthcare Conference on Tuesday, September 11, 2012 at the Grand Hyatt Hotel in New York, NY.
- [By Seth Jayson]
Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Wright Medical Group (Nasdaq: WMGI ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Wright Medical Group doing by this quick checkup? At first glance, pretty well. Trailing-12-month revenue decreased 5.3%, and inventory decreased 10.1%. Comparing the latest quarter to the prior-year quarter, the story looks decent. Revenue shrank 5.0%, and inventory shrank 10.1%. Over the sequential quarterly period, the trend looks OK but not great. Revenue dropped 2.5%, and inventory grew 0.4%.
Top 10 Clean Energy Companies To Watch For 2014: Marcolin SpA (MCL)
Marcolin SpA is an Italy-based eyewear manufacturer. It is a manufacturer of glasses and sunglasses for such brands as Tom Ford, Roberto Cavalli and Just Cavalli, Diesel, Montblanc, Tod's and Hogan, Balenciaga, Swarovski, Timberland, DSquared2 and Kenneth Cole. Advisors' Opinion:- [By John McCamant]
Our top stock selection for 2014 has received three Breakthrough Therapy Designations (BTD) by the FDA, and subsequent approval, in November, for Imbruvica, a very safe pill that has shown unprecedented efficacy to treat mantle cell lymphoma (MCL), suggests John McCamant, editor of The Medical Technology Stock Letter.
Top 10 Clean Energy Companies To Watch For 2014: APM Automotive Holdings Bhd (APM)
APM Automotive Holdings Berhad is a Malaysia-based investment holding company. The Company operates in six divisions: Suspension Division, which includes products, such as leaf springs, parabolic springs, coil springs, shock absorbers, gas springs, U-bolts and metal parts; Interior & Plastics Division, which includes products, such as plastics parts, interiors, seatings for motor vehicles, buses, auditoriums and cinemas; Electrical & Heat Exchange Division, which includes products, such as air-conditioning systems, radiators, starter motors, alternators, wiper system, distributors and other electrical parts; Marketing Division, which includes trading and distribution of automotive components/parts manufactured by it for the replacement and export market; Others, which include operations related to the rental of investment properties in Malaysia, and Operations Outside Malaysia include businesses in Indonesia, Vietnam, Australia and United States. Advisors' Opinion:- [By Damian Illia]
Since 1973 Compuware Corp (CPWR) has been providing software solutions both on-premise and through a software as a service (SaaS) model, as well as professional technical services related to mobile application developments and mainframe systems. The company reported revenues of $944.5 million in fiscal 2013, working through four segments: Performance Management (APM), Mainframe, Changepoint and Uniface. Through the APM segment Compuware provides services to maximize efficiency of web, non-web, mobile, streaming and cloud applications. Mainframe solutions are designed for organizations which require high developer productivity and enhanced service quality at lower costs, and through Changepoint it provides Professional Services Automation (PSA) and Project Portfolio Management services (PPM). Uniface, a rapid application development platform, creates renews and integrates enterprise applications. Currently, more than 7,100 companies, including many of the world's largest organizations, depend on Compuware and our new generation approach to performance management to do just that.
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