Ask Top Guru Donald Yacktman Your Investing Question

GuruFocus is interviewing investing guru Donald Yacktman, co-CIO of the $6.3 billion Yacktman Funds, in February, and will be asking readers' questions. To ask a question, enter it in the comments section below. Donald Yacktman had another remarkable performance in a volatile market. For 2011, while the S&P returned 2.1% and the average diversified U.S. stock fund returned -2.9%, the Yacktman Focused Fund and the Yacktman Fund returned 7.4% and 7.3%. In the last five years alone his cumulative return is 47.2%, compared to -3.1% for the S&P 500. He has also beaten 99% of his peers in the last three, five, ten and fifteen-year periods.

Portfolio Positions

The disciplined investors at Yacktman Funds have stuck with the world's highest quality businesses, most of which offer products or services integral to society. Their top holdings are PepsiCo (PEP), News Corp Cl. A (NWS), Procter & Gamble (PG), Microsoft (MSFT), C.R. Bard (BCR), Cisco Systems (CSCO), Sysco Corporation (SYY), Coca-Cola (KO), Pfizer (PFE) and U.S. Bancorp (USB).

"I've been doing this for over forty years, and I can't remember another period of time where I've seen so many high quality, profitable businesses selling at prices relative to the market this cheaply," Yacktman said in an interview recently.

In the fourth quarter, Yacktman's biggest additions to his holdings were Research In Motion (RIMM) and Avon Products (AVP). He also surprised followers by venturing into financials, with new positions in Goldman Sachs (GS), Bank of America (BAC), State Street Corp. (STT) and Northern Trust Corp. (NTRS).

How He Does It

Businesses that Yacktman likes will have:

· High market share in principal product and/or service lines

· A high cash return on tangible assets

· Relatively low capital requirements allowing a business to generate cash while growing

· Short customer repurchase cycles and long product cycles

· Unique franchise charac! teristics

The price must also be less than what an investor would pay to buy the whole company, and they will wait for the lowest possible price to buy a stock. The company describes their approach as "objective, diligent and patient."

A side note about Donald Yacktman is that he was often criticized for his contrarian moves during the tech bubble. While many other managers were going headlong into Internet stocks, he positioned his portfolio in undervalued small caps, believing that Internet companies were dangerously overvalued. When the bubble burst, he was proved right. His fund then had a streak of beating the market from 2000-2002, while the S&P 500 produced negative returns.

About Yacktman

Yacktman founded Yacktman Asset Management Co. in 1992, after serving for 10 years as senior portfolio manager of the Selected American Shares mutual fund, and was named Portfolio Manager of the Year by Morningstar in 1991. From 1968 to 1982, he was a portfolio manager with Stein Roe & Farnham. He holds a B.S. magna cum laude in economics from the University of Utah and an MBA with distinction from Harvard University.

Asking a Question

GuruFocus will speak with Donald Yacktman this month and ask him our readers' questions. To ask your questions, enter it in the comments section below.

See Yacktman's complete portfolio here, and also check out his Undervalued Stocks, Top Growth Companies and High Yield stocks.

Top 10 Penny Stocks For 2014

Aflac Soars New 52-Week High - Analyst Blog

Riding on a strong growth momentum ahead of its second-quarter earnings release, the shares of Aflac Inc. (AFL) reached a new 52-week high of $59.25 on Jul 11. This surpassed its previous high of $58.50 on Wednesday. This Zacks Rank #3 (Hold) stock escalated about 43.5% in the last 52 weeks.

In particular, this global electronic payment processor rose about 15.7% since the company reported its first-quarter 2013 results in April with a positive earnings surprise of 4.3%.

Yesterday's closing price represents a strong one-year return of about 39% as compared with the S&P 500 index return of 22%. Average volume of shares traded over the last three months stands at approximately 2852.1K.

On Apr 24, Aflac reported first-quarter earnings of $1.69 per share, comfortably beating the Zacks Consensus Estimate of $1.62. However, results lagged the year-ago number of $1.74 based on weak yen/dollar exchange rate, which had a negative impact of 15 cents on earnings per share.

Although expenses related to acquisitions, operations, claims and benefits witnessed a decline; these were more than offset by reduced revenues. Japan, which contributes significantly to results, witnessed a weak performance. Decelerated sales from the third sector, bank channel and WAYS products along with a weak average yen led to deteriorated earnings. A low interest rate environment also constricted returns from investments.

Nevertheless, strong risk-based capital, consistent dividend increment and share buybacks as well as surplus cash position are expected to mitigate this balance sheet risk and provide liquidity cushion to its long-term growth. While management had factored the slow growth based on difficult comps and weak exchange rates, we believe that modest earnings guidance, stable ratings and capital deployment instill shareholder confidence.

Further, valuation for Aflac appears reasonable. While the shares are trading at a 32.2% discount to the peer group average on a forward pri! ce-to-earnings basis, it is trading at 23.6% premium on a price-to-book basis. Moreover, both return on equity of 19.9% and return on assets of 2.4% are above the peer group average of 7.4% and 1.4%, respectively. The estimated long-term earnings growth rate is pegged at 10.7%, higher than the peer group average of 10.1%.

Apart from Aflac, other outperformers in the insurance sector include AmTrust Financial Services Inc. (AFSI), HCI Group Inc. (HCI) and American Safety Insurance Holdings Inc. (ASI). All these stocks carry a Zacks Rank #1 (Strong Buy).

Q2 Earnings Season Winding Down - Earnings Trends

The following is an excerpt from this week's Earnings Trends. Click here to access the full PDF

Total earnings for the 375 S&P 500 companies that have reported Q2 results, as of Thursday August 1st, are up +2.1% from the same period last year, with 66.7% beating earnings expectations with a median surprise of +2.7%.

Pretty much all of that earnings growth has come from top-line gains (up +1.9%), with margins essentially flat from the same period last year. Revenue surprises have been better relative to extremely weak levels in Q1, but largely in-line with historical levels.

Not to make light of Finance's strength, but a big part of the bank earnings growth is due to loan loss reserve releases and not from loan growth. Reserve releases are a net positive as they reflect improving credit quality, but they don't constitute the sector's core earnings power. That said, the earnings growth picture outside of Finance is very weak.

Expectations for the coming quarters have started coming down, though they still represent a material acceleration in the growth pace, as the chart below shows. Please note that the current expected growth rates for Q3 and Q4 are down from 4% and 11% last week, respectively.



A lot of the second-half growth is expected to come from sectors outside of Finance, as the chart below of ex-Finance growth expectations shows.




Most of the recent negative Q3 estimate revisions have been in the sectors outside of Finance. Current ex-Finance Q3 growth estimate of +2.3% is down from +3.2% last week. But given what we have seen from these sectors in Q2 t! hus far, it seems like a tall order for this level of growth ramp up. My sense is that estimates need to come down further in a big way.

The market hasn't cared much in the recent past about negative revisions as aggregate earnings estimates have been coming down for over a year now. But if we are entering a post-QE world, as I believe we are, then it will likely be difficult to overlook negative earnings estimate revisions going forward. How the market responds to negative guidance and the resulting negative revisions will tell us a lot about what to expect going forward.

Key Points

Total earnings for the 375 S&P 500 companies that have reported results are up +2.1%, with 66.7% beating earnings expectations. Revenues for these companies are up +1.9%, with a revenue 'beat ratio' of 49.9%. The earnings growth rate is modestly lower than what this same group of companies reported in recent quarters, while the revenue growth rate is about in-line with recent history. Revenue beat ratios have been better relative to Q1's extremely low rate. Finance results have been very strong, with total earnings for the companies that have reported results up an impressive +29.8%. Excluding Finance, total earnings for the remainder of S&P 500 companies that have reported would be down -3.6% from the year-earlier period. Finance reclaims its leadership role in the S&P 500, contributing more earnings to the index's total than Technology this year for the first time since the 2008 crisis. The sector is expected to account for 19.2% of total S&P 500 earnings in 2013 compared to Technology's 18%. Technology earnings remain weak, with total earnings for the 84.5% of the sector's market cap that have reported results down -10.9% on +1.8% higher revenues. The composite total earnings for Q2 (combining the results for the 375 companies with the 125 still to come) are expected to increase +2% on +1.3% higher revenues. Excluding Finance, total earnings for the rest! of the S! &P 500 would be down -3.1% on +1% higher revenues. Technology remains a big drag on earnings growth in Q2. Excluding Technology (but including Finance), total Q2 earnings for the S&P 500 would be up +4.9%. Estimates for 2013 Q3 and Q4 have started coming down, with current Q3 total earnings growth of +3.3% down from +4% last week. But expectations for the second half of the year still represent a material growth ramp up from the first half's level. While there is not much growth, the overall level of total earnings is quite high. Total earnings in Q2 are on track to almost equal Q1's all-time quarterly record. To access the full Earnings Trends PDF click here.

Top 10 Safest Stocks To Invest In 2014

Rustagi advises that with a time-frame of around 15 years, you can place your bet on diversified equity funds.

Below is an edited transcript of his interview with CNBC-TV18. Also watch the accompanying video.

Q: An investor can invest Rs 2,000 per month. How should she allocate the money? She has a time horizon of 15-20 years and a goal of Rs 20-25 lakh. Is Rs, 2,000 per month sufficient for her?

A: If the time horizon is around 15 years or so, she can get around Rs 10-12 lakh. It would be very difficult to maybe reach to that level with an investment of Rs 2,000. I think she needs to invest more money than what she wants to invest right now. The right thing would be to begin the process now with whatever money she has. As the time goes by, if she is in a position to invest more money, she should add to that.

Top 10 Safest Stocks To Invest In 2014: Under Armour Inc.(UA)

Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

Advisors' Opinion:

• [By Glenn]  

  Current Price: $27.27 12-month target: $37

  I see potential in opportunities for new product adjacencies, and expanding distribution worldwide. Footwear growth will continue to increase. Revenues for these products have increased over 69% in 2009. Adding to this I still see growth in Under Armour’s apparel sales, which are up 8%. Under Armor had yet to even break into the international market, which offers a plethora of new opportunities for this growing brand. I believe sales will rise drastically in 2010 driven by international sales, new women’s clothing line, and expansion within their own footwear line.
• [By Victor Mora]

  Under Armour provides athletic apparel, footwear, and accessories to a growing health and wellness, athletic, and fitness enthusiast population around the world. The stock has been on a powerful move towards higher prices that has led to it trading at all-time highs. Earnings and revenue figures have increased over most of the last four quarters which has led to excited investors. Relative to its peers and sector, Under Armour has led in year-to-date performance by a wide margin. Look for Under Armour to OUTPERFORM.

Top 10 Safest Stocks To Invest In 2014: Petroleo Brasileiro S.A.- Petrobras(PBR)

Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.

Advisors' Opinion:

• [By Dave Friedman]

  Institutional investors bought 78,663,680 shares and sold 101,125,380 shares, for a net of -22,461,700 shares. This net represents 0.23% of common shares outstanding. The number of shares outstanding is 9,872,826,100. The shares recently traded at $27.61 and the company’s market capitalization is $170,178,700,000.00. About the company: Petroleo Brasileiro S.A. – Petrobras explores for and produces oil and natural gas. The Company refines, markets, and supplies oil products. Petrobras operates oil tankers, distribution pipelines, marine, river and lake terminals, thermal power plants, fertilizer plants, and petrochemical units. The Company operates in South America and elsewhere around the world.

Top 5 Energy Stocks To Watch For 2014: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

Top 10 Safest Stocks To Invest In 2014: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

Advisors' Opinion:

• [By CRWE]

  Fluor Corporation�� (NYSE:FLR) Chairman and Chief Executive Officer, David Seaton, and Chief Financial Officer, Biggs Porter, will give a presentation to investors at the Credit Suisse 2012 Engineering & Construction Conference in New York on Thursday, June 7 at 9:00 a.m. Eastern Daylight Time.

Top EU Bets? Germany and Switzerland

Stocks in Germany and Switzerland have been among the best of a weak bunch of foreign markets so far this year, with ETFs up about 8% for the former, and 14% for the latter, reports Mark Salzinger, ETF expert and editor of The Investor's ETF Report.

Both countries enjoy positive economic fundamentals, despite regional weakness, and the ETFs representing them have moderate valuations and favorable composition.

The European Union (EU) is the largest trading partner of both Germany (about 57% of all exports go to the EU), and Switzerland (half of all exports).

Of course, this relationship with the currency bloc has checked economic expansion in both nations.

The economy of the euro area (the nations whose currency is the euro) contracted 1.1% in the first quarter of 2013, keeping German GDP growth to 0.1% and Swiss growth to 1.1%. The International Monetary Fund recently cut its estimate for German GDP growth in 2013 in half, to 0.3%.

Even so, German unemployment recently reached a two-decade low of 5.3%. Indicators of business confidence, capacity utilization (a measure of how much of Germany's industrial production capacity is actually in use), inventories, and bankruptcies have recently all been conducive to economic growth.

Consumer spending and disposable personal income have also been steadily on the rise. The IMF expects German GDP growth to accelerate to 1.3% in 2014.

Economic growth in Switzerland is among the fastest in Europe. The unemployment rate in the country was recently just 2.9%. The Swiss National Bank has maintained a zero-interest-rate policy to keep the value of the Swiss franc from rising too much, relative to the euro.

These efforts have held the value of the franc relatively steady compared to both the euro and the US dollar over the past two years, while the inflation rate has been persistently negative.

This alleviates any potential pressure to raise interest rates and boost the franc's value, helping the global competitiveness of Swiss multinationals.

iShares MSCI Germany (EWG) and iShares MSCI Switzerland (EWL) continue to have relatively attractive valuations.

EWG recently sported an average price/earnings (P/E) ratio on 2013's projected earnings of 12.6 and a price/book value (P/B) of just 1.4.

EWL has higher average valuations (P/E of 15.7 and P/B of 2.3), which are not unreasonable given that EWL has been one of the top-performing European single-country ETFs over the past three years (three-year-annualized return of 14.7%).

The sector compositions of the German and Swiss economies and their respective ETFs have helped recent performance. Neither EWG nor EWL has significant exposure to energy stocks, which have done relatively poorly for the past 18 months.

EWG has some exposure to materials stocks (about 14% of the portfolio), but most of its exposure in that sector is in chemical companies (BASF accounts for more than half of EWG's materials position) rather than poorly performing metals, mining, and fertilizer stocks.

5 Best Tech Stocks To Own Right Now

EWL has about 8% of its portfolios in materials, also mostly chemical companies.

EWG and EWL have been buoyed by significant allocations to financials (17% and 21%, respectively), healthcare (13% and 29%, EWL's largest sector allocation) and industrials (14% and 11%). EWG has its largest sector stake in consumer discretionary stocks (21%).

EWL is somewhat top heavy: its top ten positions recently accounted for more than 70% of its assets, and three positions—staples giant Nestle, and pharmaceutical leaders Roche Holdings and Novartis—each get at least 13% apiece.

About 59% of EWG is in its top ten positions, none of which account for more than about 9% of the portfolio.

Subscribe to The Investor's ETF Report here…

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Goldman Sachs’ Q2 Earnings More Than Double

Goldman Sachs (GS) said its second-quarter profits rose 101% over last year’s results. The investment bank earned $1.93 billion (before dividends) for the period ending June 30, or $3.70 a share, vs. $962 million, or $1.78 a year earlier. These results beat estimates, as revenue climbed 30% to $8.6 billion from $6.6 billion a year ago.

(Quarter over quarter, sales dropped 15% from $10.1 billion as of March 31, while earnings declined by a similar amount from the prior period.)  

The bank says it nearly tripled revenue from investing in bonds for its own account, to $658 million, thanks to strong profits made before interest rates began to rise late in second quarter.

“The firm’s performance was solid especially in the context of mixed economic sentiment during the quarter,” said Chairman and CEO Lloyd Blankfein, in a press release. “Improving economic conditions in the U.S. drove client activity and the strength of our global client franchise allowed us to deliver positive performance across a number of our businesses.”

Hot High Tech Companies To Own In Right Now

Net revenues in investment banking were $1.55 billion, 29% higher than the second quarter of 2012 and essentially unchanged compared with the first quarter of 2013. Net revenues in its financial advisory unit were $486 million, slightly higher than the second quarter of 2012.

For institutional client services, net sales were $4.31 billion, 11% higher than the second quarter of 2012 and 16% lower than the first quarter of 2013. 

Net revenues in fixed income, currency and commodities client execution were $2.46 billion, 12% higher than the second quarter of 2012, reflecting significantly higher net revenues in currencies, credit products and commodities.

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Check out Schwab Q2 Profit Drops 11%; Sales Improve 4% on ThinkAdvisor.

Timing the market and investor psyche

Top 10 Financial Stocks To Buy Right Now

With the mayhem unleashed due to the downgrade of US to AA+, markets across the world have experienced correction. In times like these, logical thinking is the first casualty. There are market observers who suggest that there is more pain and the market can trend down. There are those voices which are harping on the popular sound-bite that �Cash is King�.

There are other more optimistic ones who suggest that markets have been anticipating this and are already factored into the fall. By implication, what they mean is that the downside is limited and the upside potential is higher. Now such divergent voices are what cause confusion for the normal investor.  As it is, they are scared as the markets are falling. Do they invest now, hold on to what they have or cash out?

Timing the markets has always been a subject of much debate. Paradoxically, retail investors tend to think that they can time the market well, based on what they read and hear.  That is surprising as timing the market is virtually impossible, even for the savviest investors, which includes fund managers.   
Ironically, that is the advice investors want today from their advisors. So, what can the investor do�

First, they need not change their allocations now to accommodate the new kid on the block which is firing on all cylinders � Gold.  Most people have long-term goals and meeting them would require a consistent strategy. One should not look at changing the strategy overnight, whenever there is some change in the environment. The strategy would have to be revisited only if the events have considerably changed the risk-return possibilities over the period, which calls for such a change.  This is not one such event.

Indian stock markets have been considerably driven by FII money and when money moves back to western shores seeking �safe havens�, the markets fall. But, if one looks at the indebtedness of the various countries and the prognosis for their economies from here on, FII money will sooner than later come back to emerging economies with potential. India is one such economy, which has the potential to grow at 7%+ levels. Hence,  it is a fact that though there are short-term problems, the medium to long-term outlook is good.

Hence, apart from changing some tactical allocation & tweaking the portfolio a bit, one should let the strategy remain intact.  This means continuing SIPs/RDs which are going on, continuing with the investments done in the past to achieve long-term goals and not attempting a major change of the allocation just because Gold seems to be the star on the horizon. Gold continues to be a good hedge against inflation and due to it�s negative correlation with equities, it also reduces risk in the portfolio.

The way Gold has run up does not bode well for this commodity and correction can happen in this, in times ahead. There seems to be a bubble building up in Gold but people don�t seem to be recognizing that.

There are those who are going whole hog into Gold after liquidating investments from other assets, which is not a good strategy at all. Since the markets are in correction mode, it may be a good time to invest in Equity and Equity oriented Mutual Fund schemes, for those with a long-term view. Such investors should split their investments and invest in small lots, over time. This will enable them to invest at low market levels and take care of volatility. 

Investor psyche comes in the way here� there are those who want to shift their money away from equities and into FDs and other such debt instruments. That again is not a good strategy. Investing in equity at this point would give the best bang for the buck. Whether investors see it that way is another issue. Currently they are running scared � much against their best interests.

Strong Sell on BioScrip - Analyst Blog

Zacks Investment Research downgraded BioScrip Inc. (BIOS) to a Zacks Rank #5 (Strong Sell) on Jul 9, 2013.

Why the Downgrade?

BioScrip witnessed downward estimate revision since it reported disappointing first-quarter 2013 earnings results on May 8. Moreover, top-line for this provider of infusion, home healthcare and pharmacy benefit management (PBM) services is expected to decline 6.55% in the long-term.

In the first quarter of 2013, BioScrip's adjusted EPS of a penny missed the Zacks Consensus Estimate of 2 cents. The company delivered negative earnings surprises in 2 of the last 4 quarters. Moreover, losses widened as net loss from continuing operations of $7.5 million or a loss of 13 cents per share in the first quarter was worse than the net loss of $2 million or 4 cents per share in the year-ago quarter.

BioScrip still battles margin headwinds as the high-margin PBM business continued to decline. Although the company is working to deliver margin improvement, any near-term improvement is unlikely.

Reimbursement pressure remains an overhang for the company's home health franchise. The dearth of any major near-term catalyst might make it difficult for BioScrip to overcome these challenges in the near future.

The Zacks Consensus Estimate for 2013 declined 11.1% to 24 cents per share over the last 90 days as most of the estimates were revised downwards. For 2014, the Zacks Consensus Estimate went down 4.5% to 42 cents as half of the estimates were lowered over the same timeframe.

Other Stocks to Consider

Not all healthcare stocks carry an unfavorable Zacks Rank. Stocks like Herbalife Ltd. (HLF), AmerisourceBergen Corporation (ABC) and CVS Caremark Corporation (CVS) are likely to perform well and warrant a look. While Herbalife holds a Zacks Rank #1 (Strong Buy), the other two carry a Zacks Rank #2 (Buy).

Benzinga Market Primer: Thursday, August 1: Futures Up ...

Futures Higher on Economic Data

U.S. equity futures are significantly up in early pre-market trade based on strong Asian and European PMI data. In addition, the Bank of England and European Central Bank are expected to reaffirm a policy of easing Thursday morning.

Top News

Eurozone manufacturing is growing for the first time in two years. PMI came in at 50.3 versus the previous 48.8. China's HSBC manufacturing PMI is down from 48.2 to 47.7. However, the NBS manufacturing PMI rose from 50.1 to 50.3, beating expectations. S&P futures are up 13.3 points to 1693.8 The EUR/USD is down 0.0067 to 1.3235 Crude Oil futures are up $1.22 to $106.25. Gold futures are up $10.10 this morning to $1323.10.Asian Markets

Asian markets surged overnight on strong economic data. The Japanese Nikkei 225 Index gained 2.47 percent and the Topix Index rose 2.80 percent. In Hong Kong, the Hang Seng Index added 0.94 percent while the Shanghai Composite Index rose 1.77 percent in China. Also, the Korean Kospi added 0.35 percent.

European Markets

European shares also gained value on strong economic data and anticipation for central banks to reaffirm easing. The Spanish Ibex Index rose 0.49 percent and the Italian FTSE MIB Index declined 1.09 percent. Similarily, the German DAX rose 1.08 percent and the French CAC 40 Index rose 0.38 percent while U.K. shares gained 0.38 percent.

Commodities

Commodities were mostly higher overnight with oil seeing a sizable increase. WTI Crude futures gained 1.15 percent to $106.24 per barrel and Brent Crude futures added 0.96 percent to $108.73 per barrel. Copper futures rose 1.19 percent to $315.55 per pound. Gold was higher and silver futures climbed 0.07 percent to $19.70 per ounce.

Currencies

Currency markets were on the move overnight as the euro and pound strengthened ahead of announcements from the European Central bank and Bank of England. The EUR/USD was lower at 1.3241 and the dollar rose against the ! yen to 98.8000. The EUR/JPY bundle rose to 130.8300.

Earnings Reported Yesterday

Key companies that reported earnings Wednesday include:

Honda Motor Co (NYSE: HMC) reported second quarter EPS of $0.69 on revenue of $28.75 billion vs. $29.49 billion. Comcast (NASDAQ: CMCSA) reported second quarter EPS of $0.65 vs. $0.63 expected on revenue of $16.27 billion vs. $16.01 billion. Anheuser-Busch Inbev (NYSE: BUD) reported second quarter EPS of $0.93 vs. $1.03 expected on revenue of $10.60 billion vs. $16.20 billion. Allstate Corporation (NYSE: ALL) reported second quarter EPS of $1.12 vs. $0.98 expected on revenue of $8.79 billion vs. $7.00 billion. Mastercard Incorporated (NYSE: MA) reported second quarter EPS of $6.96 vs. $6.30 expected on revenue of $2.10 billion vs. $2.00 billion.Pre-Market Movers 

Stocks moving in the pre-market included:

Garmin (NASDAQ: GRMN) is up 4.05 percent to $38.77 after the company reported strong earnings. MasterCard (NYSE: MA) is also up on strong earnings to $625. Amgen (NASDAQ: AMGN) is down this morning after sliding 2.62 percent yesterday on bad earnings. Shares are down 2.83 percent in the pre-market to $108.05Earnings

Notable companies expected to report earnings Thursday include:

ConocoPhillips (NYSE: COP) is expected to report second quarter EPS of $1.29 vs. $1.22 a year ago on revenue of $12.75 billion vs. $13.99 billion a year ago. DIRECTV (NASDAQ: DTV) is expected to report second quarter EPS of $1.33 vs. $1.09 a year ago on revenue of $7.76 billion vs. $7.22 billion a year ago. Enbridge (NYSE: ENB) is expected to report second quarter EPS of $0.39 vs. $0.36 a year ago on revenue of $5.73 billion vs. $5.72 billion a year ago. Kraft Foods (NASDAQ: KRFT) is expected to report second quarter EPS of $0.66 on revenue of $4.81 billion. Barrick Gold (NYSE: ABX) is expected to report second quarter EPS of $0.59 vs. $0.78 a year ago on revenue of $3.10 billion vs. $3.28 billion a year ago. Link! edIn (NYS! E: LNKD) is expected to report second quarter EPS of $0.31 vs. $0.16 a year ago on revenue of $354.04 million vs. $228.21 million a year ago. Marathon Petroleum (NYSE: MRO) is expected to report second quarter EPS of $1.93 vs. $2.53 a year ago Exxon Mobil (NYSE: XOM) is expected to report second quarter EPS of $1.90 vs. $1.80 a year ago.Economics

Thursday is PMI day. Overnight, the manufacturing PMI will came out from China, early in the morning the eurozone and many European countries reported their figures, and at 8:00 am the United States number will be released. US ISM manufacturing data will also come out at 10:00 am. At 8:30 this morning, initial and continuing jobless claims will be published. The natural gas figure at 10:30 am will be interesting to watch because suspicious trade patterns indicate the figure is regularly leaked. The last big figure of the day are total vehicle sales after hours.

Good luck and good trading.

Tune into Benzinga's PreMarket Info show with Dennis Dick and Joel Elconin here.

For a recap of Wednesday's market action, read Benzinga's daily market wrap here.

Best Low Price Stocks To Buy Right Now

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

5 Best Performing Stocks To Watch Right Now

Shares of Huntington Bancshares (NASDAQ: HBAN  ) have been on a tear of late. Since the beginning of last year, they're up nearly 37%, outperforming the S&P 500 by roughly eight percentage points and ascending recently to a new 52-week high. As I write, they're trading for the highest price since the financial crisis took its toll on the bank. For current or prospective investors in Huntington, in turn, this performance begs the question: What's left for its shares going forward?

HBAN data by YCharts.

While it's impossible to predict the future, what can be said is that Huntington's valuation leaves room for further gains. Trading at 1.25 times its tangible book value, the bank is by no means cheap -- a common saying in the industry is to "buy at half of book value and sell at two times book value." At the same time, it's far from expensive. Take U.S. Bancorp, the nation's largest regional bank, as a counterpoint. Its shares trade for 2.54 times tangible book value. Or even BB&T, a regional bank operating primarily throughout the mid-Atlantic region. It changes hands at 1.86 times tangible book.

5 Best Performing Stocks To Watch Right Now: LSI Logic Corporation (LSI)

LSI Corporation designs, develops, and markets storage and networking semiconductors worldwide. It offers integrated circuits for hard disk and tape drive solutions, which are used to store and retrieve data in personal computers, corporate network servers, archive/back-up devices, and consumer electronics products. The company�s storage electronics products include systems-on-a-chip, read channels, pre-amplifiers, serial physical interfaces, and hard disk controllers, as well as custom firmware required to read, write, and protect data. It also offers pre-amplifiers, which are used to amplify the initial signal to and from the drive disk heads; and solutions that transmit data between a host computer and storage peripheral devices. In addition, the company provides custom and standard networking solutions that include chips, such as network processors, digital signal processors, content-inspection processors, traffic shaping devices, and physical layer devices, as well a s software, evaluation systems, and reference designs for office, home office, and small-to-medium business applications; flash storage processors; server storage semiconductor products, and server RAID adapters and software; and high-speed interface intellectual property that combine with customers� intellectual property to provide a connection to the SAN, memory systems, and host buses. Further, it offers networking solutions include communication processors, network processors, media processors, content-inspection processors, and physical layer devices, as well as software tools and segment specific applications, evaluation systems, and reference designs. The company was formerly known as LSI Logic Corporation and changed its name to LSI Corporation in April 2007. The company was founded in 1980 and is headquartered in Milpitas, California.

5 Best Performing Stocks To Watch Right Now: Natural Alternatives International Inc.(NAII)

Natural Alternatives International, Inc. provides private label contract manufacturing services to companies that market and distribute vitamins, minerals, herbs, and other nutritional supplements, as well as other health care products, to consumers in the United States and internationally. It offers strategic partnering services, including customized product formulation, clinical studies, manufacturing, marketing support, international regulatory and label law compliance, international product registration, packaging in multiple formats, and labeling design. The company also develops, manufactures, and markets its own branded products under the Pathway to Healing product line through print media and the Internet distribution channels. It manufactures products in various forms, including capsules, tablets, chewable wafers, and powders. The company was founded in 1980 and is headquartered in San Marcos, California.

Best Value Companies For 2014: Score Media Inc (SCR.TO)

Score Media Inc., a media company, provides interactive and authentic sports entertainment in Canada. Its primary asset, theScore Television Network, is a national television service providing sports news, information, highlights, and live event programming. The company�s digital media assets include theScore.com and the mobile sports applications, such as ScoreMobile, ScoreMobile FC, and SportsTap. It also offers an optimized application for the BlackBerry PlayBook tablet, which provides access to real time scores, stats, news, live blogs, and original video. The company serves approximately 6.8 million homes. Score Media Inc. was founded in 2000 and is based in Toronto, Canada. As of October 19, 2012, Score Media Inc. operates as a subsidiary of Rogers Media Inc.

5 Best Performing Stocks To Watch Right Now: Noront Resources Ltd. (NOT.V)

Noront Resources Ltd., a development stage company, engages in the acquisition, exploration, and development of various mineral properties in Canada. The company explores for base and precious metals, including nickel, copper, platinum group metals, chromite, iron, titanium, gold, silver, and vanadium. It primarily holds a 100% interests in Eagle's Nest project located in the James Bay Lowlands, Ontario. The company was formerly known as White Wing Resources Inc. and changed its name to Noront Resources Ltd. in July 1983. Noront Resources Ltd. was incorporated in 1980 and is headquartered in Toronto, Canada.

5 Best Performing Stocks To Watch Right Now: MER Telemanagement Solutions Ltd.(MTSL)

Mer Telemanagement Solutions Ltd., together with its subsidiaries, designs, develops, markets, and supports a line of telecommunication expense management (TEM), and customer care and billing solutions for business organizations and other enterprises worldwide. Its TEM solutions assist enterprises and organizations in the allocation of costs, budget control, fraud detection, processing of payments, and spending forecasting. The company also offers converged billing solutions, including applications for charging and invoicing customers, interconnect billing, and partner revenue management through pre-pay and post-pay schemes for wireless providers, voice over Internet protocol, Internet protocol television, and content service providers. Its products provide telecommunication and information technology managers with tools to reduce communication costs, recover charges payable by third parties, and to detect and prevent abuse and misuse of telephone networks comprising fault telecommunication usage. The company markets its products through its direct sales force, distributors, and business telephone switching systems manufacturers and vendors. Mer Telemanagement Solutions Ltd. was founded in 1995 and is headquartered in Raanana, Israel.

Investment strategies for small investors in volatile mkt

5 Best Heal Care Stocks To Invest In Right Now

Below is the verbatim transcript of Roongta's interview with CNBC-TV18.
 
Q: The most common mistake that small investors make is to invest in a rising market thereby reducing their returns. What is a good method to avoid falling in this trap? How can value investment planning work?

A: A systematic investment plan (SIP) over the long-term helps the investor to do rupee cost averaging; when the market is down one gets more units, when the market is up then one gets less. A value investment plan goes one step further, rather than investing a fixed amount it forces one to invest more when the market is down. Therefore, not only one gets more units, but because one invests more money the overall return is higher and reverse to, when the market is doing better it forces not to put in money, in fact if one follow the pure value investment planning principles, one should also sell. However, practically when it is followed, most people would put the minimum down to zero rather than put a sell on it.

So, simply if one follow it in a disciplined manner, just let it run its course, it forces one to invest more when the market is low, it forces one to invest much less or even zero when the market is high and thus in the long-term gives great return.    

Caller Q: My annual salary is Rs 8.5 lakh, out of which I want to invest Rs 50,000 per annum. Please advise which mutual funds, SIPs, exchange-traded funds (ETFs)I should go for which will give me good returns?

A: You must invest with a goal in mind and in your case it is retirement. If Rs 50,000 is the figure that you are talking about and given that you are young, you should, at the current stage put in a bulk of your money, long-term systematically into equities. If you have access to expertise then you can put it into a largecap fund but keep reviewing it. I would advise you to put 90 percent of your money in a largecap fund on a systematic basis, something like Franklin India Bluechip Fund or ICICI Prudential Focused Bluechip Equity Fund .

If you do not have access to expertise maybe you can look at Nifty index fund so that you do not have to keep reviewing the performance of the fund. Therefore, roughly Rs 3,800 into index fund, roughly Rs 300 in a public provident fund. Just remember even over 30 years assuming aggressive returns of 14 percent and 8.7 percent, this will total up to about Rs 1.77 crore but in today's value, if you take 8 percent inflation, it is just about Rs 17 lakh. So, may not be adequate for your retirement kitty. It is a good plan, go ahead and invests in this manner. However, you would need to supplement it if this is what you want to build your retirement kitty with.

Will News Corp Continue This Monster Surge?

With shares of News Corp. (NASDAQ:NWSA) trading around $33, is NWSA an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

News Corp. is a diversified global media company that operates in six segments: Cable Network Programming; Filmed Entertainment; Television; Direct Broadcast Satellite Television; Publishing; and Other. The company is involved in programming distribution through cable television systems and direct broadcast satellite operators; live-action and animated motion pictures distribution and licensing; operation of broadcast television stations and the broadcasting of network programming and in direct broadcast satellite business through its subsidiary, SKY Italia. News Corp. distributed information and entertainment through just about every medium possibe which reinforces a powerful presence. As companies and consumers continue to search for entertainment and information at increasing rates, look for companies like News Corp. to see rising profits.

T = Technicals on the Stock Chart are Strong

News Corp. stock has seen a consistent uptrend over the last several years. The stock is now trading at all-time high prices and sees no significant signs of slowing. 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, News Corp. is trading above its rising key averages which signal neutral to bullish price action in the near-term.

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(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of News Corp. options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
News Corp. Options	20.29%	3%	2%

What does this mean? This means that investors or traders are buying a very minimal amount of call and put options contracts, as compared to the last 30 and 90 trading days.

	Put IV Skew	Top 10 Low Price Stocks To Watch Right Now Call IV Skew
June Options	Flat	Average
July Options	Flat	Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a very minimal amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on News Corp.’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for News Corp. look like and more importantly, how did the markets like these numbers?

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	221.05%	140.48%	235.71%	273.83%
Revenue Growth (Y-O-Y)	13.54%	5.01%	2.22%	3.87%
Earnings Reaction	4.48%	-2.33%	1.6%	-0.21%

News Corp. has seen increasing earnings and revenue figures over the last four quarters. From these figures, the markets have been pleased with News Corp.’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has News Corp. stock done relative to its peers, Time Warner (NYSE:TWX), Viacom (NASDAQ:VIA), Walt Disney (NYSE:DIS), and sector?

	News Corp.	Time Warner	Viacom	Walt Disney	Sector
Year-to-Date Return	32.34%	27.05%	31.62%	33.30%	26.85%

News Corp. has been a relative performance leader, year-to-date.

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Conclusion

News Corp. provides entertainment and information through a variety of mediums to consumers and companies all around the world. The stock has been on a bullish run over the last several years and is now trading at all-time high prices. Over the last four quarters, earnings and revenue figures have been increasing which has pleased investors. Relative to its peers and sector, News Corp. has been a year-to-date performance leader. Look for News Corp. to OUTPERFORM.

Top Growth Companies To Own In Right Now

Natural gas and propane utility operator Chesapeake Utilities (NYSE: CPK  ) announced yesterday that as of May 31�it had completed the acquisition of Eastern Shore Gas (ESG) along with its affiliate Eastern Shore Propane (ESP), both indirect, wholly owned subsidiaries of Energy Equity Partners�that provide propane gas to residents of Worcester County, Md.

Chesapeake subsidiary Sandpiper Energy will operate ESG while subsidiary Sharpgas will operate ESP's assets. Management says that because its own interstate natural gas pipeline operations have already made major expansionary moves into Worcester County, it will look to convert ESG's propane facilities into natural gas.

Chesapeake Utilities CEO�Michael P. McMasters said: "The acquisition of the operating assets of ESG by Sandpiper Energy is a key next step in our growth �strategy, enabling us to significantly expand our footprint in Worcester County.� ... Over the next few months, we will evaluate the potential conversion of the ESG facilities from propane to natural gas.� We will proceed with conversions where economically feasible."

Top Growth Companies To Own In Right Now: Buffalo Wild Wings Inc.(BWLD)

Buffalo Wild Wings, Inc. engages in the ownership, operation, and franchise of restaurants in the United States. The company provides quick casual and casual dining services, as well as serves bottled beers, wines, and liquor. As of July 26, 2011, it had 773 Buffalo Wild Wings locations in 45 states in the United States, as well as in Canada. The company was founded in 1982 and is headquartered in Minneapolis, Minnesota.

Advisors' Opinion:

• [By Fabian]  

  While Chipotle has captured most of the attention among the restaurant stocks, Buffalo Wild Wings (BWLD: 56.62 0.00%) could be 2011’s big winner. Wall Street is expecting 19% earnings growth from Buffalo Wild Wings in 2011 which is only slightly lower than Chipotle’s 20% growth rate. However, BWLD trades at only 18x consensus 2011 estimates while CMG trades at a pricey 40x. On an EBITDA basis, Chipotle trades at over 20x, while Buffalo Wild Wings trades at less than 9x.

Top Growth Companies To Own In Right Now: Waste Management Inc.(WM)

Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.

Advisors' Opinion:

• [By Tom Konrad]

  The only household name in this year's list, Waste Management is coming back for an encore performance in 2013.  WM is the North American leader in recycling and renewable biogas among waste and environmental services companies.  The industry has been in a cyclical downturn, and WM's well-covered 4.2% dividend makes it a solid anchor for this portfolio of small and micro-cap clean energy stocks.

• [By Sam Collins]

  Houston-based Waste Management Inc. (NYSE: WM) is the largest trash hauling/disposal company in the United States. This company is a model for steady growth with earnings increasing steadily over many years.?

  S&P has a “four-star buy” on WM with a 12-month target of $42. WM pays an annual dividend of $1.36 for a yield of 3.7%.?

  Technically, the stock is in a powerful bull channel with support at $36 and resistance at $39. Buy WM as a long-term growth opportunity.

Top 5 Financial Stocks To Invest In 2014: CNO Financial Group Inc. (CNO)

CNO Financial Group, Inc., through its subsidiaries, engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company markets and distributes Medicare supplement insurance, interest-sensitive and traditional life insurance, fixed annuities, and long-term care insurance products; Medicare advantage plans through a distribution arrangement with Humana Inc.; and Medicare Part D prescription drug plans through a distribution and reinsurance arrangement with Coventry Health Care. It also markets and distributes supplemental health, including specified disease, accident, and hospital indemnity insurance products; and life insurance to middle-income consumers at home and the worksite through independent marketing organizations and insurance agencies. In addition, the company markets primarily graded benefit and simplified issue life insurance products directly to customers through television advertising, direct mail, Internet, and telemarketing. It sells its products through career agents, independent producers, direct marketing, and sales managers. CNO Financial Group, Inc. has strategic alliances with Coventry and Humana. The company was formerly known as Conseco, Inc. and changed its name to CNO Financial Group, Inc. in May 2010. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana.

Top Growth Companies To Own In Right Now: Sara Lee Corporation(SLE)

Sara Lee Corporation engages in the manufacture and marketing of a range of branded packaged meat, bakery, and beverage products worldwide. Its packaged meat products include hot dogs and corn dogs, breakfast sausages, sandwiches and bowls, smoked and dinner sausages, premium deli and luncheon meats, bacon, beef, turkey, and cooked ham. It also offers frozen baked products, which comprise frozen pies, cakes, cheesecakes, pastries, and other desserts. In addition, Sara Lee provides roast, ground, and liquid coffee; cappuccinos; lattes; and hot and iced teas, as well as refrigerated dough products. The company sells its products under Hillshire Farm, Ball Park, Jimmy Dean, Sara Lee, State Fair, Douwe Egberts, Senseo, Maison du Caf Advisors' Opinion:

• [By Carlson]

  Director of Sara Lee Corp., James S Crown, bought 37,500 shares on 9/12/2011 at an average price of $17.5. Sara Lee Corporation is a global manufacturer and marketer of high-quality, brand-name products for consumers throughout the world. Sara Lee Corp. has a market cap of $10.24 billion; its shares were traded at around $17.5 with a P/E ratio of 19.9 and P/S ratio of 1.2. The dividend yield of Sara Lee Corp. stocks is 2.7%.
  
  On August 11, Sara Lee Corp. reported earnings for the fourth quarter 2011. The fourth quarter included an 8% increase in adjusted net sales from continuing operations to $2.3 billion; 9% reported net sales increase, 40% increase in adjusted operating income to $189 million; and reported operating income increase of 19%.
  
  Last week, Director James S Crown bought 37,500 shares of SLE stock. Executive Chairman Jan Bennink bought 58,400 shares in August.

Top Growth Companies To Own In Right Now: Checkpoint Systms Inc.(CKP)

Checkpoint Systems, Inc. manufactures and markets identification, tracking, security, and merchandising solutions for the retail and apparel industry worldwide. The company operates in three segments: Shrink Management Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. The Shrink Management Solutions segment provides shrink management and merchandise visibility solutions. It offers electronic article surveillance systems, such as EVOLVE, a suite of RF and RFID-enabled products that act as a deterrent to prevent merchandise theft in retail stores; and electronic article surveillance consumables, including EAS-RF and EAS-EM labels that work in combination with EAS systems to reduce merchandise theft in retail stores. This segment also provides keepers, spider wraps, bottle security, and hard tags, as well as Showsafe, a line alarm system for protecting display merchandise. In addition, it offers physical and electronic store monitoring solutions, incl uding fire alarms, intrusion alarms, and digital video recording systems for retail environments; and RFID tags and labels. The Apparel Labeling Solutions segment provides apparel labeling solutions to apparel retailers, brand owners, and manufacturers. It has Web-enabled apparel labeling solutions platform and network of 28 service bureaus located in 22 countries that supplies customers with customized apparel tags and labels. The Retail Merchandising Solutions segment offers hand-held label applicators and tags, promotional displays, and queuing systems. The company serves retailers in the supermarket, drug store, hypermarket, and mass merchandiser markets through direct distribution and reseller channels. Checkpoint Systems was founded in 1969 and is based in Thorofare, New Jersey.

Advisors' Opinion:

• [By Michael]

  OK, so Checkpoint (CKP: 13.80 0.00%) probably isn’t going to see its stock price double in 2011. However, the stock gained 35% in 2010 with earnings expected to climb 13%. Next year, Wall Street sees earnings growth accelerating to 25%. Despite the impressive growth rate, the stock trades at only 16x next year’s earnings estimates and analysts have a $25 price target for CKP.

Top Growth Companies To Own In Right Now: Intuitive Surgical Inc.(ISRG)

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Its da Vinci surgical system consists of a surgeon?s console or consoles, a patient-side cart, a 3-D vision system, and proprietary ?wristed? instruments. The company?s da Vinci surgical system translates the surgeon?s natural hand movements on instrument controls at the console into corresponding micro-movements of instruments positioned inside the patient through small puncture incisions, or ports. It also manufactures a range of EndoWrist instruments, which incorporate wrist joints for natural dexterity for various surgical procedures. Its EndoWrist instruments consist of forceps, scissors, electrocautery, scalpels, and other surgical tools. In addition, it sells various vision and accessory products for use in conjunction with the da Vinci Surgical System as surgical procedures are performed. The company?s accessory products include sterile drapes used to ensure a sterile field during surgery; vision products, such as replacement 3-D stereo endoscopes, camera heads, light guides, and other items. It markets its products through sales representatives in the United States, and through sales representatives and distributors in international markets. The company was founded in 1995 and is headquartered in Sunnyvale, California.

Advisors' Opinion:

• [By Jim Lowell]

  Intuitive Surgical (ISRG: 329.49 0.00%) is an expensive stock and their stock price is currently well below the $400 level that it flirted with in April. However, the stock is a compelling growth story with revenues and earnings expected to climb 19% in 2011. The company faces little competitive pressure and 2011 is likely the year that consumers opt for procedures that they delayed in 2009-10. That could produce some blowout earnings results for ISRG in 2011.

Summer Money-Making Opportunities For Finance Students

Best Energy Stocks To Buy Right Now

While student debt has always represented a controversial and prominent issue, its recent ascent has triggered even greater consternation. Not only are the current generation of students borrowing more to fund their education, but they are also are entering an employment market that is volatile and populated with low-paying job opportunities. As a result of this, the value of overdue student loans has reached an all-time high in the United States, while nearly a third of of 20 to 24-year-old graduates are currently unemployed.

The cumulative amount of student debt in America has now reached a staggering $1 trillion; this represents the single-largest category of consumer liability outside of mortgages. The consequences of this are far reaching for graduates in the current economy, as they are unable to establish savings or fund the purchase of a house until they have found viable work and begun to repay their debt. Given that the rate of self-employment also fell by 19% among individuals aged 25 and under between 2005 and 2010, it is clear that soaring debt levels are also preventing students from becoming entrepreneurs and using their skills to create opportunities for others.

With this in mind, it is increasingly important that students seek out relevant and gainful methods of employment while in college. Whether they use their skills to secure temporary employment or establish an entrepreneurial venture, this willingness to work will enable them to create new income streams and acquire practical experience within a chosen market or industry. The latter can prove to be particularly valuable, especially when you consider rising graduate unemployment and the competition that exists for lucrative, industry specific jobs.

So, which summer jobs and work opportunities should students pursue in 2013? Consider the following options:

Become a Tutor or Mentor
With technology giant Intuit predicting that freelancers will make up 40% of the U.S. workforce by 2020, it is clear that the ability to effectively market your skills will be crucial in future employment markets. This particular talent is also becoming increasingly important for those who seek more traditional roles of employment, especially when you consider that modern recruiters are far more interested in how your skills may be deployed rather than their individual nature. By first understanding your core skills and learning how them to apply them in variable circumstances, it is possible to maximize your earning potential.

As a student, your most marketable skills will relate to your knowledge base and specific area of academic expertise. You may also have particularly strong social skills, and these attributes can be used to successfully mentor or tutor younger students. Just as individuals in employment may seek out guidance and actionable advice from more senior colleagues, so too are young students keen to benefit from those who have experience in following a similar academic course. So long as you focus on your areas of strength and can help others to recognize their innate abilities, you can generate significant income while sharing the benefit of your practical experience.

Embrace the World of Blogging
The term "accidental entrepreneur" originated from the Great Recession, as the onset of economic crisis ravaged American behavioral patterns and forced individuals to work independently out of necessity rather than desire. It is also to important to recognize the role of technology in this drive, however, as independent earning techniques such as blogging have been made increasingly accessible by innovation and advancement.

Blogging itself has encountered rapid growth during the last decade, with Technorati reporting that the number of registered Internet blogs rose from 4 million to 70 million between 2004 and 2007. As one of the world's most prominent growth industries, blogging represents a genuine money-making opportunity for students. Boasting low-cost start-up fees and access to easily manageable software, blogging can generate significant profits and help to raise awareness concerning a specific brand, cause or project.

Once again, the key is to focus on your core knowledge base and use this to create educational and engaging content. You can even market your written communication skills to firms that are hoping to promote themselves through guest blogging services. When you consider that the highest-earning blog of 2012 turned over an estimated $30,000 per day, there is ample opportunity for you to earn and gain experience is a thriving market.

Profit from Your Carefully Created Essays and Revision Materials
There have been additional innovations that have created earning opportunities for students. Consider the development of website building packages or resources that enable individuals to build their own mobile applications. Take the experience of student Nick D'Aloisio, for example, who designed an app that aggregates international news stories and condenses them for mobile devices. After further development, the young entrepreneur subsequently sold the application to Yahoo for a grand total of $30 million in March of this year.

Such an endeavor may compromise your studies, however, especially when you consider the effort that needs to be invested into the design process and subsequent negotiations. Fortunately, there are far simpler ways of earning money through technological platforms, with Gradesaver.com providing a relevant example. Using this resource, you can sell your completed academic works, essays and study notes for research purposes, earning up to $25 for every published piece of content. These items have practical value, as they can be used as reference points by fellow students, while the site itself retains the copyright so that they cannot be plagiarized or used inappropriately.

The Bottom Line
While there are many more options available to students who are looking to make money and develop practical work experience, these earning methods offer particular value. More specifically, they enable students to generate additional income without compromising their studies, while tutoring and blogging in particular provide actionable experience that can be taken forward into the current employment market. In the quest to reduce student debt and create a brighter professional future, enjoying a profitable summer may provide the ideal starting point.

Portland General Raises Dividend

Utility operator Portland General Electric  (NYSE: POR  )  announced yesterday its second-quarter dividend of $0.275 per share, a near-2% increase over last quarter's payout of $0.27 per share.

The board of directors said the quarterly dividend is payable on July 15 to the holders of record at the close of business on June 25.

Portland General Electric President and CEO Jim Piro said, "PGE's strong operations, prudent financial management, and focus on delivering value to both our customers and our shareholders makes it possible to provide the seventh consecutive annual dividend increase since going public in 2006."

The regular dividend payment equates to a $1.10-per-share annual dividend, yielding 3.5% based on the closing price of Portland General Electric's' stock on May 22.

POR Dividend data by YCharts

Amazon and Overstock's Crazy Price War's a Win for Book Lovers

Getty Images Usually when companies fight each other, it's consumers who get the worst of it. But right now, we're witnessing a business battle that's actually benefiting consumers in a big way. In this corner: Amazon (AMZN). In that corner: Overstock.com. At stake: Which site gets to claim it has the lowest prices on books. For years, Amazon has had sole possession of those bragging rights. But Overstock, a discounter not as widely known for its book offerings, is trying to make a splash in the book game by beating Amazon on price. Starting July 22, the site began offering to match Amazon's prices on hundreds of thousands of books, and then lower the price by another 10 percent. Overstock is applying the program to 360,000 of its titles. Not to be outdone, Amazon is going through its list and discounting its books to beat those prices -- which is causing Overstock's computers to respond by lowering their own prices again. The result is a race to the bottom, with the book-buying public realizing huge discounts on even the most popular books. Gillian Flynn's "Gone Girl," for instance, is a bestseller that came out in June and has a list price of $25. It's currently $12.84 at Amazon, but Overstock has it for just $10.63. The Amazon price history of the book shows that the price started dipping shortly after Overstock's price-match program went into effect. The price war is largely being fought by the two e-tailers' computers, which are programmed to periodically check the competition's prices and beat them.

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While algorithms of this sort have gone a little screwy in the past -- consider the case of the biology textbook that wound up priced at $23 million -- we're guessing there a fail-safes in place here to make sure the prices don't go too low. That's probably why we aren't seeing books selling for pennies on either site right now, and likely won't. Still, Overstock pledged Thursday that it would keep up the promotion for at least another week. So if there's a book you're looking to buy, now is the time to do it. Check the prices on both sites, see where you're getting the better shipping deal, and then click "buy" before the two companies declare a cease-fire.

3 Big-Volume Stocks in Breakout Territory

 DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

With that in mind, let's take a look at several stocks rising on unusual volume today.

Noah

Noah (NOAH) is a service provider focusing on distributing wealth management products to the high-net-worth population in the People's Republic of China. This stock closed up 7.7% to $12.64 in Friday's trading session

Friday's Volume: 357,000

Three-Month Average Volume: 207,430

Volume % Change: 120%

From a technical perspective, NOAH ripped higher here right above its 50-day moving average of $11.37 with above-average volume. This move is quickly pushing shares of NOAH within range of triggering a near-term breakout trade. That trade will hit if NOAH manages to take out some near-term overhead resistance levels at $12.77 to $12.98 with high volume. At last check, NOAH hit an intraday high on Friday of $12.98 and volume was well above its three-month average action of 207,430 shares.

Traders should now look for long-biased trades in NOAH as long as it's trending above its 50-day at $11.37 and then once it sustains a move or close above those breakout levels with volume that hits near or above 207,430 shares. If that breakout hits soon, then NOAH will set up to re-test or possibly take out its 52-week high at $14.64. Any high-volume move above $14.64 will then push NOAH into new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $18 to $20.

Ultra Petroleum

Ultra Petroleum (UPL) is an oil and natural gas company engaged in the acquisition, exploration, development and production of oil and natural gas properties. This stock closed up 1.8% at $22.36 in Friday's trading session.

Friday's Volume: 10.05 million

Three-Month Average Volume: 3.19 million

Volume % Change: 300%

Shares of UPL spiked up a bit on Friday after the company said it moved to a profit for its second quarter on improved revenue and the absence of major ceiling test writedowns. The company reported net income of $116.4 million, or 75 cents per share, vs. a loss of $1.19 billion, or $7.76 per share, for the same period last year.

From a technical perspective, UPL jumped higher here right above its 200-day moving average of $20.32 and back above its 50-day moving average of $21.48 with monster upside volume. This move is quickly pushing shares of UPL within range of triggering a near-term breakout trade. That trade will hit if UPL manages to take out some near-term overhead resistance levels at $21.96 to $22.47 with high volume. At last check, UPL closed near its intraday high of $22.50 and volume was well above its three-month average action.

Traders should now look for long-biased trades in UPL as long as it's trending above its 50-day $21.48 or its 200-day at $20.32 and then once it sustains a move or close above those breakout levels with volume that's near or above 3.19 million shares. If that breakout hits soon, then UPL will set up to re-test or possibly take out its 52-week high at $24.52. Any high-volume move above that level will then put $26 to $27.60, or even $30 into range for shares of UPL.

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Chefs' Warehouse

Chefs' Warehouse (CHEF) is a specialty food products distributor that supplies products such as specialty cheeses, truffles, seafood, cooking oils and flour to restaurants, country clubs, hotels, caterers, culinary schools and specialty food stores. This stock closed up 7% at $22.11 in Friday's trading session.

Friday's Volume: 316,000

Three-Month Average Volume: 72,070

Volume % Change: 367%

From a technical perspective, CHEF ripped higher here right above some near-term support levels at $20 to $19.50 with heavy upside volume flows. This move pushed CHEF into breakout territory and into a gap down zone from last year, since the stock took out some near-term overhead resistance at $21.08. This move also pushed shares of CHEF into new 52-week-high territory, which is bullish technical price action.

Traders should now look for long-biased trades in CHEF as long as it's trending above that breakout level of $21.08 or above support at $20 and then once it sustains a move or close above Friday's high of $23.09 with volume that's near or above 72,070 shares. If we get that move soon, then CHEF will set up to re-test or possibly take out its next major overhead resistance levels at $25.97 to its all-time high at $27.26.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

3 Reasons to Love the Allstate Earnings Report

The good hands of Allstate (NYSE: ALL  ) reported earnings after the bell Wednesday, with better than expected results. While there were plenty of reasons for investors to love the Allstate earnings report, the stock is down in trading so far today -- with a 0.42% drop just after 1 p.m. EDT. Taking a deeper look than just analyst earnings expectations, here's a list of three reasons to love what the insurer reported last evening, along with one reason investors may be hating it, too.

Reason to Love No. 1: Earnings
Just like every other headline reported, Allstate's profits were down by 7% because of increased losses from catastrophic events. Now this might seem like it should be the bad news, but the insurer still produced higher than expected earnings. With EPS of $1.47 per share, the company handily beat the analyst consensus of $1.30 per share. This all being done in a quarter where the losses were $100 million higher than the year before -- a 38.6% increase.Though both earnings and operating profit both decreased year over year, the company was able to handle a heavier cost load while still maintaining market share and producing a return.

Reason to Love No. 2: Increased premiums
One of the key reasons Allstate was able to manage the bigger catastrophic loss burden was because of increases in the company's policy premiums. Overall property and casualty premiums grew 2.5% year over year, while Allstate Financial (the company's life and annuity business) premiums grew 4.7% during the same period. All of the company's insurance segments reported higher premiums for the quarter:

Segment	First-Quarter Premium Growth
Allstate Brand	1.1%
Encompass	7.2%
Esurance	30.5%

Source: Allstate earnings press release May 1.

Esurance, a recently acquired self-directed insurance service also reported a 36.4% increase in policy units for the period. While this is also good news for the growth of the segment, Esurance serves the value sector of Allstate's insurance operations, so the policies will naturally have higher premiums, but also higher anticipated claims payouts. More on that in a minute.

Reason to Love No. 3: Improved combined ratio
In the insurance world, a combined ratio is the tally of losses and costs per $100 of written premiums. Allstate reported an 0.4 improvement in its underlying combined ratio, dropping it from 88.1 to 87.7. So for every $100 in premiums that Allstate brings in, it keeps $12.30. Competitor Traveler's Companies (NYSE: TRV  ) reported improvement with its combined ratio, though its 3.7 point drop keeps it behind Allstate, netting it $11.50 per $100 in premiums.

Each of the company's insurance segments have their own combined ratios, which can show you the difference in their operations and demographics:

Segment	Reported Combined Ratio	Improvement From Q1 2012
Standard Auto (Combined)	96.1	1.2 points
Allstate Brand	94.2	1.0 points
Encompass	105.8	0.8 points
Esurance	110.3	n/a
Homeowners (Combined)	65.8	1.2 points
Allstate Brand	85.1	(4.9) points

Source: Allstate earnings press release May 1.

As noted above, the Esurance brand is likely to require higher payouts for its policies, as demonstrated by the 110.3 combined ratio. The company has stated it is working on developing long-term customer relationships with the hope that new customers may be able to bring this number down in future periods. Allstate brand homeowners insurance saw a rise in its combined ratio largely due to the continued impact of Hurricane Sandy in the first quarter. The previous year saw an 11.2 point drop from 2011, so investors should be able to expect a decline next year, barring any other huge natural disasters.

One reason to hate
Okay, so here we are -- the top reason to hate Allstate's earnings announcement. It stems from a prudent decision on behalf of the company, but is not something any insurance investor really wants to hear. Because the historically low interest rate environment has been putting increased pressure on insurance companies' investment returns, Allstate has decided to make changes in its strategy. Leaving more traditional investments, the company is focusing on a shift to more cash-generating investments as a means to adjust to the current conditions. While this may be a good idea for the company now, it has already acknowledged that this move will reduce future investment income.

Since the company attributed its 1.2% return for the quarter to increased investment income, this is not a good sign for investors. Since insurance companies rely on their investment returns for a solid piece of their earnings, this is an important factor for Allstate investors to consider.

Going forward
Based on its first quarter, Allstate looks to be in good condition. With some more focus on gaining market share and improved operations, the company will continue to manage any future catastrophic losses like it has this past quarter. But with some pressure on its investment operations, there is plenty of reason for investors to hesitate on a rosy outlook for the company. Keep an eye out for more developments from Allstate, with a focus on its investment strategy. 

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Why InnerWorkings Shares Tumbled

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of InnerWorkings (NASDAQ: INWK  ) were falling apart today, dropping as much as 25% after the promotional specialist cut its full-year guidance ahead of its first-quarter report.

So what: InnerWorkings, which provides printed and promotional materials for businesses, said that it was trimming its 2013 to revenue outlook to a range of $900 million to $930 million, down from a previous range of $930 million to $960 million, and revising EPS guidance to $0.45-$0.50 from a previously projected range of $0.57-$0.61. InnerWorkings said the lower guidance was due to a change in management at a large client, and its decision to do some of its business with one of InnerWorkings' competitors.

Now what: Even with the drop in revenue and profit expectations, InnerWorkings still sees EPS increasing by 10% to 22% this year. Today's drop may be hard to stomach for shareholders, but the loss of the client doesn't point to any other structural weaknesses in the company. Its recent acquisition of DB Studios should provide an additional growth outlet. At this point, there seems to be no good reason to sell.

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Chairman & CEO, 10% Owner of Winmark Corporation John L. Morgan Bought 2,000 Shares

Winmark Corporation was incorporated in Minnesota in 1988. It is a franchisor of four value-oriented retail store concepts that buy, sell, trade and consign merchandise. Winmark Corporation has a market cap of $359.8 million; its shares were traded at around $71.90 with a P/E ratio of 26.00 and P/S ratio of 6.80. The dividend yield of Winmark Corporation stocks is 0.20%. Winmark Corporation had an annual average earnings growth of 24.5% over the past 10 years.

Chairman & CEO, 10% Owner of Winmark Corporation (WINA) John L. Morgan bought 2,000 shares on July 29, 2013 at an average price of $68.55. The total transaction amount was $137,100.

John Morgan has been CEO of Winmark Corp. since March 2000. Before, he has served as CEO of Winthrop Resources Corp, a company that he founded from 1982 to 1999. He is also a chairman of Tomsten Inc. and a director of Winmark Corporation.

Also, Mr. John Morgan bought 7,200 shares of WINA stock from April to June. Other Directors and Officers sold shares in the month of July.

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Winmark Corporation announced their 2013 second quarter results. The company reported net income of $4.3 million or $0.83 per diluted share and revenues of $14.02 million.