I talked about insider trading last week, laying out how I use it to find value stocks. But we can also use the insiders screen to help solve one of the most difficult question facing investors today.
We already know that the stock of companies with recent open-market purchases by the top two executives have a strong tendency to go up substantially over the next year. We can now screen for companies that have shown this type of positive activity from insiders and also provide a high dividend yield.
Top 5 Low Price Companies To Own For 2015: Novavax Inc.(NVAX)
Novavax, Inc., a clinical-stage biopharmaceutical company, focuses on developing recombinant vaccines for infectious diseases using its virus-like particle platform (VLP) technology. It develops vaccine product candidates that target pandemic influenza, including H1N1 and H5N1 strains; seasonal influenza; and respiratory syncytial virus (RSV). Novavax has a joint venture with Cadila Pharmaceuticals Ltd. to develop and manufacture the company?s pandemic and seasonal influenza vaccine candidates, Cadila?s biogeneric products, and other diagnostic products for the territory of India; and a licensing agreement with LG Life Sciences, Ltd. to use the company?s VLP technology to develop and sell the company?s influenza vaccines in South Korea and other countries. It also has a co-marketing agreement with GE Healthcare for a pandemic influenza vaccine solution. The company was founded in 1987 and is headquartered in Rockville, Maryland.
Advisors' Opinion:- [By Jay Silverman]
Steve Halpern: One lower price biotech stock to follow is called Novavax (NVAX). What's the attraction with that company?
Jay Silverman: Novavax has very innovative vaccine technology, and historically, they've been a company that's developed flu vaccines and even pandemic flu vaccines, such as the bird flu that's been in the news over the summer in China.
- [By Roberto Pedone]
One under-$10 biopharmaceutical player that's currently trending within range of triggering a major breakout trade is Novavax (NVAX), which is engaged in creating differentiated, value- upon current preventive options for various infectious diseases. This stock is off to a strong start in 2013, with shares up around 40%.
If you take a look at the chart for Novavax, you'll notice that this stock has been uptrending strong for the last two months, with shares soaring higher from its low of $1.68 to its recent high of $2.78 a share. During that uptrend, shares of NVAX have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of NVAX are now starting to move within range of triggering a major breakout trade accompanied by strong upside volume flows.
Traders should now look for long-biased trades in NVAX if it manages to break out above some key overhead resistance levels at its 52-week high of $2.78 to $3 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 1.56 million shares. If that breakout triggers soon, then NVAX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $3.50 to $4 a share, or possibly even $4.50 a share.
Traders can look to buy NVAX off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $2.35 a share, or right below its 50-day at $2.22 a share. One can also buy NVAX 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.
- [By Monica Gerson]
Novavax (NASDAQ: NVAX) is projected to post a Q4 loss at $0.08 per share on revenue of $6.22 million.
FuelCell Energy (NASDAQ: FCEL) is estimated to post a Q4 loss at $0.04 per share on revenue of $43.44 million.
- [By Jay Silverman]
Novavax (NVAX) is executing its clinical plan with a clearly defined, and risk-adjusted, strategy. The firm is developing proprietary flu and RSV vaccines using their VLP technology.
Top 10 Cheapest Companies To Own For 2014: iSoftStone Holdings Limited(ISS)
iSoftStone Holdings Limited provides various information technology (IT) services and solutions in the Greater China and internationally. It offers an integrated suite of IT services and solutions, including consulting and solution services, IT services, and business process outsourcing (BPO) services. The company provides a range of consulting services for an overall engagement or discrete consulting services in conjunction with other services. It also develops industry-specific solutions, including treasury management, cash management, property and casualty insurance core, financial holding company business analysis, trust company core, and banking risk management solutions for banking, financial services, and insurance industries; supply chain management, enterprise information portals, business intelligence, business process integration, and management and e-commerce solutions for energy, transportation, and public sectors; mobile and embedded technology, next generati on platforms, business intelligence functionality, and network security products for the communications industry. In addition, the company offers various IT services consisting of application development and maintenance, research and development, and infrastructure and software services. Further, it provides a range of BPO services, such as securities trade processing services for the investment banking industry; digitization and archiving of policyholder information, as well as account processing and customer service for insurance industry; and cross-industry BPO services comprising finance and accounting, customer care, and human resources. The company was founded in 2001 and is headquartered in Beijing, the People?s Republic of China.
Advisors' Opinion:- [By Seth Jayson]
iSoftStone Holdings (NYSE: ISS ) reported earnings on May 17. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), iSoftStone Holdings beat expectations on revenues and beat expectations on earnings per share.
Top 10 Cheapest Companies To Own For 2014: SPDR Dow Jones Industrial Average ETF Trust (DIA)
Diamonds Trust, Series 1 (the Trust) is a unit investment trust. The Trust was created to provide investors with the opportunity to purchase units of beneficial interest in the Trust representing proportionate undivided interests in the portfolio of securities consisting of substantially all of the component common stocks, which comprise the Dow Jones Industrial Average (the DJIA). The Trust�� objective is to provide investment results that, before expenses, generally correspond to the price and yield performance of the DJIA.
The Trust's holdings consist of the 30 stocks in the DJIA, which is designed to capture the price performance of 30 United States blue-chip stocks. The Trust ended its fiscal year on October 31, 2007, with a 12-month return of 17.72% on net asset value as compared to the DJIA return of 17.94%. As of October 31, 2007, some of the Trust�� investments included 3M Co., Alcoa, Inc., Altria Group, Inc., American Express Co., American International Group, Inc., AT&T, Inc., Boeing Co., Caterpillar, Inc., Citigroup, Inc. and Coca-Cola Co.
Advisors' Opinion:- [By Tom Aspray]
The Powershares QQQ Trust (QQQ) is clearly the leader, up over 200%, which is over 20% better than the iShares Russell 2000 (IWM), which is up 178%. The small caps have done over 40% better than the large cap Spyder Trust (SPY) but this performance does not include dividends, which would narrow the gap considerably. The SPDR Dow Jones Industrials (DIA) has continued to lag as its price is up just 120% during the bull market.
- [By Josh Arnold]
Second, the author states that GE is no longer a safe investment or worthy of the title "blue chip" because of its horrendous performance during the financial crisis. I understand where he is coming from here but the fact remains that the S&P 500 was more than cut in half in the same timeframe so faulting a company for having terrible price action during the Great Recession seems overly harsh to me. In addition, GE basically is the reason for the term "blue chip" as it is the only remaining member of the original Dow Jones Industrial Average (DIA). There is no stock on the planet that deserves that moniker better than GE. I'll admit that GE is riskier than some other conglomerates due to its GE Capital arm but this is no speculative play, either.
- [By Editor , ETFChannel.com]
According to the ETF Finder at ETF Channel, CAT makes up 3.78% of the SPDR Dow Jones Industrial Average ETF (DIA) which is trading lower by about 0.7% on the day Friday.
- [By Tom Aspray]
Both have done significantly better than the Spyder Trust (SPY), which is up 29.32%, and the 26.52% gain in the SPDR Dow Industrials (DIA). But will buy and hold work again in 2014?
Top 10 Cheapest Companies To Own For 2014: Whiting Petroleum Corporation(WLL)
Whiting Petroleum Corporation engages in the acquisition, development, exploitation, exploration, and production of oil and gas primarily in the Permian Basin, Rocky Mountains, Mid-Continent, Gulf Coast, and Michigan regions of the United States. As of December 31, 2010, its estimated proved reserves were 304.9 million barrels equivalent of oil; and had interests in 9,698 gross productive wells covering approximately 1,115,000 gross developed acres. The company sells its oil and gas to end users, marketers, and other purchasers. Whiting Petroleum Corporation was founded in 1983 and is Denver, Colorado.
Advisors' Opinion:- [By Monica Gerson]
Whiting Petroleum (NYSE: WLL) is projected to post its Q3 earnings at $1.06 per share on revenue of $678.69 million.
Skechers USA (NYSE: SKX) is expected to post its Q3 earnings at $0.61 per share on revenue of $518.22 million.
- [By Lee Jackson]
Whiting Petroleum Corp. (NYSE: WLL) is ranked as the third largest producer�in the Bakken shale region. Over 2013, Whiting sold off significant amounts of its assets that are not in the Bakken, including its Postle Field enhanced oil recovery assets for $817 million and its acreage in the Delaware Basin for $150 million. The company in turn is using the cash from the sales and deploying more assets into the higher-return Bakken. The Merrill Lynch price target for the stock is $79, and the consensus figure is at $77.50.�Shares�closed at $60.73 on Monday.
- [By Matt DiLallo]
With one stroke of the pen BreitBurn Energy Partners (NASDAQ: BBEP ) accomplished its acquisition goal for 2013. In fact, the company blew away its $500 million target by signing a nearly $900 million deal with Whiting Petroleum (NYSE: WLL ) �and its partners for oil properties in the Oklahoma Panhandle. Let's take a closer look at what this deal means for BreitBurn's unit holders.
- [By Aaron Levitt]
With hydraulic fracturing taking over, energy production in North America is booming to say the least. From the Bakken to the Marcellus, energy stocks like Range Resources (RRC) to Whiting Petroleum (WLL) have realized plenty of profits as they have begun to tap our abundant shale resources.
Top 10 Cheapest Companies To Own For 2014: Six Flags Entertainment Corporation New(SIX)
Six Flags Entertainment Corporation owns and operates regional theme, water, and zoological parks. The company?s parks offers various selection of state-of-the-art and traditional thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. It owns and operates 19 parks, including 17 parks in the United States; 1 park in Mexico City, Mexico; and 1 park in Montreal, Canada. The company was formerly known as Six Flags, Inc. and changed its name to Six Flags Entertainment Corporation in April 2010. Six Flags Entertainment Corporation was founded in 1971 and is based in Grand Prairie, Texas.
Advisors' Opinion:- [By James E. Brumley]
When investors and/or consumers think of a theme park company, a name like Six Flags Entertainment Corp. (NYSE:SIX) or the quintessential The Walt Disney Company (NYSE:DIS) comes to mind. And well they should. Disney is easily the world's most popular amusement park purveyor, while many thrill-seekers say a Six Flags park is the place to go for the most intense thrill ride experience. Rarely - as in never - does a little independent film company sneak into the conversation regarding the world's top amusement parks. That may be about to change, however, if Independent Film Development Corporation (OTCMKTS:IFLM).
- [By Tamara Rutter]
2. Six Flags (NYSE: SIX )
This theme park operator has come a long way since emerging from bankruptcy in May 2010. Today, the stock is up more than 27% year to date and boasts a dividend yield of 4.8%. Six Flags is home to the tallest roller coaster in the world, as well as one of the largest wildlife safaris outside of Africa. Six Flags kicked off the summer by featuring new rides in all 18 of its U.S. parks, according to Six Flags CEO Jim Reid-Anderson.
Top 10 Cheapest Companies To Own 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 Keith Speights]
Biotech stocks are highly volatile. A good example of this is Spectrum Pharmaceuticals (NASDAQ: SPPI ) . Spectrum rode a wave of generic leucovorin shortages in late 2010 and early 2011 to stock gains of more than 170%. Shares then plunged more than 30% from July through September 2011. But the ride wasn't over yet.
- [By James E. Brumley]
Eight months ago, Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) was a train wreck. Shares had plunged from $12.43 to $7.79 on the heels of bad news, and SPPI wouldn't stop bleeding until it hit a low of $6.92 a few days after the big selloff. That bad news? A warning that its full-year sales (and particularly sales of its cancer drug Fusilev) would be well short of expectations.
- [By Keith Speights]
Another prime case study for this comes from Spectrum Pharmaceuticals (NASDAQ: SPPI ) . Spectrum's stock more than doubled from October 2011 through July 2012. However, shares plunged 55% from those highs because business dynamics changed since then. A shortage of a generic rival to Spectrum's lead drug Fusilev was alleviated, resulting in sales slowing down considerably.�
Top 10 Cheapest Companies To Own For 2014: Tallgrass Energy Partners LP (TEP)
Tallgrass Energy Partners, LP incorporated on February 6, 2013, is a limited partnership company. It provides natural gas transportation and storage services for customers in the Rocky Mountain and Midwest regions of the United States through its Tallgrass Interstate Gas transportation system and processing services for customers in Wyoming through its Midstream Facilities. The Company operates in two segments: Gas Transportation and Storage and Processing. The Gas Transportation and Storage segment is engaged in ownership and operation of interstate natural gas pipelines and related natural gas storage facilities that provide services to third-party natural gas distribution utilities and other shippers. The Processing segment is engaged in ownership and operation of natural gas processing and treating facilities that produce natural gas liquids and residue gas that is sold in local wholesale markets or delivered into pipelines for transportation to additional end markets.
The Company provides processing services for customers in Wyoming through its Casper and Douglas natural gas processing and West Frenchie Draw natural gas treating facilities. The Casper and Douglas plants have combined capacity of 138.5 138.5 MMcf/d. The Company has its operations in Lakewood, Colarado. The Company owns and natural gas processing plants in Casper and Douglas, Wyoming and a natural gas treating facility at West Frenchie Draw, Wyoming through its wholly-owned subsidiary, Tallgrass Midstream, LLC.
The Company competes with Kinder Morgan and Southern Star Central Gas Pipeline, Inc.
Advisors' Opinion:- [By Aimee Duffy]
Tallgrass Energy Partners (NYSE: TEP ) followed closely behind, going public on May 14. This midstream company picked up some of Kinder Morgan Energy Partners'�western-based natural gas assets when KMP was forced to divest them to receive the Department of Justice's blessing on the El Paso acquisition.
- [By Robert Rapier]
Tallgrass Energy Partners (NYSE: TEP) is a midstream limited partnership that provides natural gas transportation and storage services in the Rocky Mountain and Midwest regions of the US. The partnership launched on May 13, 2013 and in late June increased EBITDA guidance above analysts’ expectations, causing units to climb nearly 21 percent by year-end. In December TEP reiterated guidance for 1.2x distribution coverage for the entire year. The partnership recently declared a distribution of $0.3150 per unit for the fourth quarter of 2013 – a 5.9 percent increase from the Q3 2013 distribution. TEP’s annualized yield based on the most recent distribution is 4.8 percent, its current EV is $1.28 billion and its total debt/equity (mrq) is 30.5 percent.
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