Saturday, May 31, 2014

Review: Ducati Multistrada excels even in the rain

The Multistrada 1200 S Granturismo is Ducati's top of the line motorcycle for adventure touring.

Equipped with huge side cases (73-liter capacity each) and a 48-liter top case with passenger backrest, this 1198 cc, 150 hp beast is made to haul butt while hauling close to a week's worth of luggage.

I recently had the opportunity to test the Multistrada with a week-long ride topping 3,000 miles. I rode from just outside Baltimore to Key West, Fla., then back again with a few detours, including Fort Myers Beach, Fla., Savannah, Ga. and New Bern, N.C.

The bike is heavy at 540 pounds wet (luggage and tools easily puts it near 600 pounds.) and tall (regular seat height is 33.5 inches). Being a short rider, that made it fairly cumbersome for me to maneuver in a parking lot. At only 5-feet, 2-inches, I opted for the lowered seat, but even with that, I was on tip toes at a stop, which meant I had very little leverage to get the bike off its kickstand. I often had to stand next to the bike, push it off the stand, then try to hop on while keeping everything upright.

Once the bike got moving, it was as if there was almost nothing underneath me. Despite having a higher center of gravity because of the L-shape engine, which is only really noticeable when moving the bike around by foot, it is very well balanced and effortless to maneuver once on the road. There was plenty of clearance between the handlebars and the gas tank, so there was no obstruction when turning lock-to-lock, meaning U-turns and other tight maneuvers were a cinch.

The windscreen is easily adjustable by pinching two levers and sliding it up or down, and can be done while riding.

On my ride to Florida, I hit a rain band that stretched along Interstate 95. I rode five hours straight in the rain. The standard tires performed well and the bike felt nicely planted on the pavement at all times. Even during braking, the ABS rarely kicked in. The windscreen, fairings and hand guards also did a fine job protecting me from t! he elements, but in a steady rain like that, there really is no way to keep rain off. I did manage to stay dry thanks to my Alpinestars Stella New Land Gore-Tex jacket and pants. They were soaked on the outside, but not a drop penetrated through.

Ducati's top of the line adventure touring bike has 150 hp and 91.8 pound-foot of torque.(Photo: Ducati)

Top High Dividend Companies To Invest In Right Now

The LED headlights and auxiliary lights were super-bright. On the highway, the wide light spread easily lit up three lanes and the shoulder. Riding through Big Cypress National Preserve on U.S. 41 in the pitch black, I could see far enough into the surrounding swamp that I was not afraid of being surprised by wildlife. The downside of the brightness was that it seemed to have blinded a few on-coming cars as I was flashed numerous times. This could be fixed by adjusting the lamps to point down more, but I could only adjust them a bit with the tools carried while riding. Any more adjustment would require tools I didn't carry.

Ducati's electronic Ride-by-Wire system allows riders to switch between four riding modes while riding (as in, motor on, cruising down the road): Sport, touring, urban and enduro. Those modes can be further customized by the rider, but only when the bike is stopped. Suspension, throttle response and power output are among adjustable features. I kept it simple and stayed on touring mode, which offers a softer ride, gentler power delivery and more fuel efficiency.

The Skyhook suspension was a very pleasant surprise, performing much better than anticipated. It adjusts automatically to riding and roa! d conditi! ons, absorbing bumps and dips for a much smoother ride. For example, if you go over a speed bump, coming off the bump the suspension drastically reduces the bounce-back sensation. It worked just as well when I was riding as a passenger, automatically adjusting for the additional weight.

The backrest on the top case was a nice touch when I rode as passenger. The seating position was very upright, as well, which made it very comfortable and easy to hang on to the rider. There are even places to grip by hand. Any passenger who has ridden in aggressive, forward-leaning positions knows how uncomfortable it can get after a time, especially when you have to brace yourself on the gas tank when stopping so you don't slam into the rider.

The Multistrada had a few drawbacks. Most annoying was that the gas light comes on after about 130 to 150 miles. For a touring motorcycle, good range is key, and I would expect to get close to 180 miles before seeing the gas light.

When I got back home, I wanted to really push the fuel limits to see how far I can actually get. I kept a small can of fuel with me in the top case and rode the bike around until it quit. The Multistrada actually gets another 50 miles after the light comes on before running out of gas, putting the range closer to 200 miles. I also learned that the fuel light would start blinking when range was about 20 miles.

I had a few quibbles with the controls, which are not very intuitive. On the left handlebar, there is a top switch and a bottom switch. Each one controls separate menus, instead of being used to scroll up or down the same menu, which seems to make more sense.

Also, to turn the heated grips on, you have to hit the start button, which is also the kill switch. I always felt a bit of hesitation when hitting that button while riding, nervous it would shut off the engine. (That never happened.)

The Multistrada will do fine on dirt trails and gravel, but for me, it felt too heavy for serious off-roading. The standard ! tires are! really better suited for pavement, anyway.

The bike is great for commuting, too. It's super nimble, especially if you take the panniers off. Those cases, even empty, are heavy and stick out so far to the side that it causes quite a bit of buffeting at higher speeds. With the cases off, the bike is a quick, slick machine.

As for style, Ducati nailed this one. It's tall, aggressive yet lithe looks garnered a lot of attention from passers by and several thumbs up from drivers.

In short, the Multi is a serious, comfortable touring motorcycle with plenty of power at the ready. You can easily navigate urban rides, long stretches of highway and even jump some curbs if you have to. Shorter riders may find the Multistrada a bit much to handle, though. I personally feel more comfortable on a shorter, lighter machine. Of course, doing so you may have compromise ground clearance, power and storage capacity, so it really depends on what you are looking to do.

The Multistrada 1200 S Granturismo starts at $22,295 and comes in red or grey. An optional GPS is available for $729. Sure, it's not cheap, but who ever thought keeping an athletic supermodel would be?

The Ducati Multistrada has plenty of storage space in the side cases and the top case.(Photo: USA TODAY)

Ducati's Multistrada 1200 S Granturismo features four ride modes and Skyhook suspension.(Photo: Ducati)

The S Granturismo has two 73-liter side cases and a top case.(Photo: Ducati)

Friday, May 30, 2014

Hot Supermarket Companies To Invest In 2015

Hot Supermarket Companies To Invest In 2015: United Natural Foods Inc.(UNFI)

United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, and specialty foods, as well as non-food products in the United States. It carries approximately 60,000 products, consisting of national brand, regional brand, private label, and master distribution products in 6 product categories: grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements, bulk and food service products, and personal care items. The company serves approximately 17,000 customer locations primarily located across the United States, which include independently owned natural products retailers, supernatural chains, conventional supermarkets, and food service centers. Its other distribution channels include international mass market chains and buying clubs. The company also owns and operates natural products retail stores. As of August 1, 2009, it had 13 natural products retail stores located primarily in Florida. In addition, the com pany engages in the international importing, roasting, packaging, and distribution of nuts, seeds, dried fruits, and snack items. It sells these items in bulk in its own packaged snack lines, EXPRESSnacks, Woodfield Farms, and Woodstock Farms, as well as through private label packaging arrangements. The company was founded in 1978 and is headquartered in Providence, Rhode Island.

Advisors' Opinion:
  • [By Paul Ausick]

    Big Earnings Movers: Ulta Salon, Cosmetics & Fragrance Inc. (NASDAQ: ULTA) is up 17.3% at $117.49, after posting a new 52-week high of $118.27 today. United Natural Foods Inc. (NASDAQ: UNFI) is up 12.9% at $67.72 after posting a new 52-week high of $69.35 earlier.

  • [By Greg Harmon]

    United Foods International (UNFI), has run higher in fits and starts from a double bottom at 47ish. The movement since late May has been a harmonic deep crab. It achieved the potential reversa! l zone (PRZ) and is now pulling back in a broadening descending wedge. Or is it a bull flag? The crab calls for a target lower at the 38.2% Fibonacci level, while the bull flag suggests a MM to 62.50. Whichever it gives first is the one to play. I guess the world is right to think of Whole Foods first. Both of these stocks will be moving but not likely before Whole Foods reports.

  • [By Jacob Roche]

    But beyond Whole Foods, there's United Natural Foods (NASDAQ: UNFI  ) , the industry's chief distributor of organic food products. In fact, a third of the company's sales come from Whole Foods, so the two companies' fates are tightly interwoven. United Natural released third-quarter earnings Tuesday and raised its full-year guidance, and there was a bit of good news and a bit of bad news to go around.

  • [By Laura Brodbeck]

    Notable earnings released on Monday included:

    United Natural Foods, Inc. (NASDAQ: UNFI) reported second quarter EPS of $0.56 on revenue of $1.65 billion, compared to last years EPS of $0.46 on revenue of $1.45 billion. Urban Outfitters, Inc (NASDAQ: URBN) reported fourth quarter EPS of $0.59 on revenue of $905.90 million, compared to last years EPS of $0.56 on revenue of $856.83 million. Hill International, Inc.(NYSE: HIL) reported a fourth quarter loss of $0.03 per share on revenue of $145.00 million, compared to last years loss of $0.04 per share on revenue of $110.77 million.

    Pre-Market Movers

  • source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/hot-supermarket-companies-to-invest-in-2015.html

Thursday, May 29, 2014

10 Best Industrial Disributor Stocks To Buy Right Now

10 Best Industrial Disributor Stocks To Buy Right Now: Gol Linhas Aereas Inteligentes SA (GOL)

Gol Linhas Aereas Inteligentes S.A. (GoL) is a low-cost, low-fare airline in the world providing service on routes connecting all of Brazils cities and from Brazil to cities in South America and select touristic destinations in the Caribbean. As of March 31, 2010, GoL offered approximately 800 daily flights per day to 61 destinations connecting cities in Brazil, as well as destinations in Argentina, Bolivia, Curacao, Aruba, Chile, Colombia, Paraguay, Uruguay and Venezuela. GoL is a holding company, which owns directly or indirectly shares of five subsidiaries: VRG Linhas Aereas S.A. (VRG) and four offshore finance subsidiaries, Gol Finance Cayman and GAC Inc., which owns Sky Finance and Sky Finance II. VRG is the Companys operating subsidiary, under which it conducts its business. Gol Finance, GAC Inc., Sky Finance and Sky Finance II are off-shore companies established for the purpose of facilitating cross-border general and aircraft financing transactions.

GoLs passenger transportation services include ticketless travel; online sales, check-in, seat assignment and flight change and cancellation services; online flight status service; Web-enabled cell phone ticket sales and check-in; self check-in at kiosks at designated airports; designated female lavatories; friendly and efficient in-flight service; modern aircraft interiors; quick turnaround times at airport gates; free or discounted shuttle services between airports and drop-off zones on certain routes; buy on board services on certain flights; mobile check-in and boarding pass (100% paperless boarding), and iPhone application for check-in, electronic boarding pass and Smiles account management. On December 31, 2009, the Company had an operational fleet of 108 operational aircraft and a total fleet of 127. As of March 31, 2010, one of its Boeing 767 aircrafts was subleased to a charter company in the United States, one is under fi! nal formalization process for a wet l ease to a Brazilian company for flights connecting Brazil to! Angola and three are under final stages of negotiation to be chartered to operate intercontinental flights. At December 31, 2009, GoL had a total of 127 aircraft, 94 of which were under operating leases and 33 were under finance leases.

The Company competes with TAM Linhas Aereas S.A.

Advisors' Opinion:
  • [By Jon C. Ogg]

    Gol Linhas A茅reas Inteligentes S.A. (NYSE: GOL) is a Brazilian airline carrier, as well as a mail and cargo carrier. At $4.65, the 52-week trading range is $2.74 to $7.67.

  • [By Roberto Pedone]

    One airline player that's starting to trend within range of triggering a near-term breakout trade is Gol Linhas Aereas Inteligentes (GOL), through its subsidiaries, engages in the air transportation of passengers, cargo, and mailbags in Latin America. This stock has been hammered by the bears so far in 2013, with shares off by 42%.

    If you look at the chart for Gol Linhas Aereas Inteligentes, you'll notice that this stock has been uptrending strong for the last two months, with shares moving higher from its low of $2.74 to its recent high of $3.83 a share. During that uptrend, shares of GOL have been mostly making higher lows and higher highs, which is bullish technical price action. Shares of GOL just recently formed a double bottom above its 50-day moving average at $3.57 to $3.55 a share. Shares of GOL are now starting to spike higher above those support levels and move within range of triggering a near-term breakout trade.

    Traders should now look for long-biased trades in GOL if it manages to break out above some near-term overhead resistance levels at $3.83 to $4.14 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 2.19 million shares. If that breakout triggers soon, then GOL will set up to re-test or possibl! y take ou! t its next major overhead resistance level at its 200-day moving average of $5.30 a share to $6 a share.

    Traders can look to buy GOL off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $3.46 a share. One can also buy GOL off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

  • [By Jim Jubak]

    One place to look for it this week has been in the ADRs, the New York traded ADRs, American Depository Receipts of GOL. One of the two big Brazilian airlines is the only one that is not owned by somebody else. The symbol is (GOL). It went up like 9.5% on October 21; it went up about 4.5% on October 22, pulled back a tiny little bit on October 23, but still a major, major move. This is basically on the effect of a weaker dollar versus the Brazilian real, since GOL is basically a domestic airline and almost all their revenue is denominated in real, which means that when the real gets cheap against the dollar, it hurts their revenue, especially because most of their costs, a lot of their costs, probably about 80% of their costs are denominated in dollars. A strong dollar means what they pay for oil, kerosene, jet fuel, what they pay for debt service, what they pay on airplane leases, all denominated in dollars, goes up, so GOL has been getting hammered on this. The reversal of this is a big deal for the stock.

  • [By Jake L'Ecuyer]

    Gol Linhas Aereas Inteligentes (NYSE: GOL) was down, falling 6.31 percent to $4.0850 after the company posted a loss in the third quarter.

    Commodities
    In commodity news, oil traded up 1.33 percent to $94.28, while gold traded up 0.28 percent to $1,274.70.

  • source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/10-best-industrial-disributor-stocks-to-buy-right-now.html

10 Best Transportation Stocks To Own Right Now

10 Best Transportation Stocks To Own Right Now: Snam SpA (SRG)

Snam SpA is an Italy-based company engaged in the management of natural gas services. The Company is diversified into four operating segments. The Transportation segment covers transportation-related gas services, including capacity management and transportation of the gas at the entry points of the gas network to the redelivery points. It owns transportation infrastructures of gas pipelines. The Regasification segment is focused on extraction activities of natural gas, its liquefaction for transport by ship and subsequent regasification. The Storage segment covers deposits, gas treatment plants, compression plants and the operational dispatching system. The Distribution segment engages gas distribution through local transportation networks from delivery points at the metering and reduction stations to the gas distribution network redelivery points at the end customers. Additionally, Snam SpA as the parent company, focuses on planning, management, coordination and control of the group. Advisors' Opinion:
  • [By Victor Selva]

    The Specialty Restaurant Group (SRG), which includes Bahama Breeze and The Capital Grille, has grown over the last couple of quarters. Eddie V's Restaurants and Yard House might be meaningful long-term drivers, as we think most of the growth in the next years will come from the acquisition of those restaurants.

  • [By Tom Stoukas]

    Snam SpA (SRG) dropped the most in almost a year as Eni SpA sold an 11.7 percent stake in the owner of Italy's biggest natural-gas network. Wm Morrison Supermarkets Plc tumbled the most in more than 14 months. Experian Plc jumped to a record after the world's largest credit-checking company raised its dividend and announced a share buyback.

  • source from Top Stocks For 2015:http:/! /www.topstocksblog.com/10-best-transportation-stocks-to-own-right-now.html

Wednesday, May 28, 2014

Best US Companies To Buy Right Now

Best US Companies To Buy Right Now: Electro Scientific Industries Inc (ESIO)

Electro Scientific Industries, Inc. (ESI) incorporated on April 19, 1949, is a supplier of laser-based manufacturing solutions for the microtechnology industry. The Company operates high-technology manufacturing equipment, which consists of products that are organized in three groups: interconnect & microfabrication, semiconductor and components. The Companys laser systems enable precise structuring of micron to submicron features in components and devices which are used in a wide variety of end products in the consumer electronics, computer, semiconductor, communications and other markets. Its laser microfabrication systems allow microelectronics, semiconductor, and other microtechnology manufacturers to physically alter select device features during high-volume production. In June 2012, it acquired Eolite Systems.

The Companys laser-based systems improve production yields or enable improved performance for flexible and rigid high density interconnect printed circuit boards, semiconductor devices, light emitting diodes (LEDs), advanced semiconductor packaging, touch-panel glass, flat panel liquid crystal displays (LCDs) and other high value components. Additionally, it produces high-capacity test and inspection equipment that is critical to control process during the production of multilayer ceramic capacitors (MLCCs). Its equipment ensures that each component meets the electrical and physical tolerances required to perform properly. Lastly, it produces systems that use photonic technology to perform precision inspection for control and defect identification. The Companys Interconnect & Microfabrication Group products address an expanding number of applications and materials on a broad set of substrates, including panels, continuous-feed reels, and discrete three dimensional components or devices.

Interconnect Via Drilling

For electrical interconnect applications, The Compa! nys laser via mic ro fabrication systems target applications that require the ! highest accuracy and smallest via (hole) dimensions to create electrical connections between layers in flexible circuits, high-density circuit boards and IC packages. The Companys microvia drilling technology addresses the rapidly changing applications in IC packages, multichip modules and HDI circuit boards. Its ultraviolet (UV) laser processing systems employ technology in lasers, optics and motion control.

Advanced Microfabrication

The Company offers several platforms that enable customers to perform precision drilling, scribing, cutting, etching, routing or marking on many different types of materials and devices including glass, metal, plastic, paint and ceramics. It also offer laser ablation systems that ablate material for identification and analysis applications, including forensics, mineral analysis and research.

Semiconductor Group (SG)

The Companys Semiconductor Group products address multiple applicatio ns that utilize laser energy to process materials on wafer-based substrates. This includes traditional silicon wafers, LEDs wafers, and new ultrathin silicon wafers used in the three-dimensional (3D) packaging applications. Semiconductor Memory Yield Improvement Systems includes semiconductor memory yield improvement products are designed to cost-effectively enable post-repair yield improvements in the manufacturing of dynamic random access memory (DRAM) memory devices.

3D Semiconductor Wafer Processing

The 3D chip packaging technologies is driving the need for silicon wafers to become thinner in order to allow for stacking of wafers within the same packaging geometry. As wafers become thinner, they become more challenging to cut into discrete chips using traditional mechanical saws. The Companys model 9900 uses a laser to dice ultra-thin silicon wafers, those with a thickness of 50 microns or below, and to singulate interposers. ! In additi! on, th is platform can be used to scribe next generation thin film ! materials! that lend themselves to laser processing.

LED Wafer Scribing

The Companys AccuScribe line of sapphire wafer scribing systems is a key component in the manufacture of LEDs. During production, LEDs are created on a thin wafer of synthetic sapphire crystal that must be broken into individual units at the end of the process. The brittle nature of the sapphire wafer requires that it be carefully cut in order to prevent unwanted fractures, yield losses, and lower light output when the wafer is broken apart into discrete LEDs. The AccuScribe systems use a laser to scribe the wafer with a precise groove between individual LEDs. When mechanical force is applied to the wafer, it fractures along these grooves and allows the wafer to be split apart into discrete LEDs. These systems are capable of scribing both standard and high brightness designs for general illumination applications. In addition, this platform can be used to address singulation of various LED packaging materials.

LCD Repair

The Comapny's laser LCD repair systems are critical to improving yields in the manufacture of flat panel displays. During production, individual pixels of a display may develop electrical defects that result in no light emission or the emission of only a steady white light. To correct these defects, flat panel display producers employ a laser repair process to isolate the electrical defects during production by cutting the inputs to the pixel. Its laser systems are primarily sold to the manufacturers of LCD repair tools as a key component of their products.

Semiconductor Systems

The products include industry wafer marking equipment, wafer and circuit trim tools, and LCD repair tools. Wafer marking equipment is used for serialization and wafer identification by both manufacturers of semiconductor wafers and within semiconductor fabs. Wafer and circuit trim too! ls are la! ser systems t hat adjust the electrical performance of semiconductor devic! es or hyb! rid circuits by removing a precise amount of material from one or more circuit components.

Components Group (CG)

The Company designs and manufactures products that combine high-speed small parts handling technology with real-time control systems to provide automated, cost-effective inspection solutions for manufacturers of MLCC and other passive components such as capacitor arrays, inductors, resistors, varistors and hybrid circuits. These components, produced in quantities of trillions of units per year, process analog, digital and high-frequency signals and are used in all electronic products.

The Company provides several types of products and solutions in this market. Its MLCC test systems employ high-speed handling and positioning techniques to precisely load, test and sort MLCCs based on their electrical energy storage capacity, or capacitance, and their electrical energy leakage, or dissipation factor. Its 35XX series is the prod uctive tester. Its 3510 model enables high speed testing of the industrys smallest metric 0402 capacitors used primarily in advanced cell phone and tablet designs. It also produces consumable products, such as carrier plates and termination belts, both of which are used to hold MLCCs during the manufacturing and testing process.

The Company competes with Mechanics, Ltd., LPKF Laser & Electronics AG, Mitsubishi Electric Corporation, Orbotech Ltd., InnoLas Systems GmbH, DISCO Corporation, Laser Solutions, Inc., Quantel USA, Inc., Humo Laboratory, Ltd. and HOYA Corporation.

Advisors' Opinion:
  • [By Evan Niu, CFA]

    What: Shares of Electro Scientific (NASDAQ: ESIO  ) popped briefly today, up by 11% at the high, after the company reported earnings.

    So what: Revenue in the fiscal fourth quarter totaled $39.6 million, which translated into a non-GAAP net loss of $1 million, or $0.03 per share! . Both fi! gures came out better than expected, as consensus estimates were calling for $38.1 million in revenue and an adjusted loss of $0.07 per share.

  • [By Eric Volkman]

    Electro Scientific Industries (NASDAQ: ESIO  ) has a new division under its corporate wing. The company has inked a definitive agreement to purchase the semiconductor systems unit of GSI Group (NASDAQ: GSIG  ) . The terms of the deal were not disclosed.

  • source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/best-us-companies-to-buy-right-now.html

Tuesday, May 27, 2014

How Not To Get Soaked When The Bond Bubble Bursts

Most investors are unaware and ill-prepared for the impact that rising interest rates will have on their bond funds and ETF investments. There has been an unprecedented period of Fed participation (manipulation) with six years of near zero-percent interest rate policy and trillions of newly created currency.

The Federal Reserve is waging a battle against deflation. Deflation can lead to depression. The Fed's objective is to create inflation. Our risk is that they do not succeed.  Unfortunately, our risk is also that they do succeed.

In inflationary periods, interest rates rise.  Since the Fed sets short-term rates, let's take a look at where the Federal Open Market Committee members believe interest rates are heading. Currently, 13 of the 16 FOMC participants believe the Fed will begin to raise rates in 2015.  One sees rates beginning to rise in 2014 and the remaining two see rates rising in 2016.  Their median year-end Fed funds rate target for 2015 is now 1.00%, up from 0.75% just three months ago.  The year-end target for 2016 is now 2.25%, up from 1.75%.

All of this suggests that the FOMC will begin hiking rates sooner and perhaps more aggressively than what investors may be expecting.  Also of note is that the FOMC participants see a 4% federal funds rate longer term. Rising rates spell trouble for unsuspecting bond investors.

What is the potential impact?  Recently, the yield on the 10-year Treasury note was 2.50%.  That is 2.50% above the current Fed funds rate of 0%.  If the Fed funds rate reaches 1% in 2015, then the 10-year Treasury is likely to yield 3.50%.  Such a move higher will cause an approximate 8% loss in principal value; though rates could move even higher.

A 2016 Fed funds target of 2.25% puts the 10-year Treasury yield near 4.75% (an approximate loss of 18%) and a longer-term Fed funds target of 4% puts the 10-year Treasury yield near 6.50%, a loss in principal value of 29%.  Further, if you own bond funds or ETFs with long-term exposure, the losses will be even greater.  A behavioral disconnect exists as many individual investors are unaware they can lose money in their bond funds and ETFs.

The following chart shows the current yield on the 10-year and 30-year Treasury (orange highlight).  The green arrow shows how much bonds will appreciate if rates move 1% lower.  The red arrow shows the approximate loss for every 1% rise in interest rates.  I've circled in red the potential loss should rates rise 3% above where they are today.

chart 2b - 5.21

These are estimates, of course, yet the idea is to gain awareness of the large interest rate risk that may exist in your portfolio. While rates may continue to go lower before they go higher, most Wall Street analysts project the 10-year Treasury to yield north of 3% by year end.  So far they are wrong yet at some point, with little room left on the downside, rates are likely to rise.  It is important to protect your portfolio against the inevitable rise in interest rates while at the same time participating in bond returns when the trend for interest rates is down (such as year-to-date 2014).

What can you do? Tactically trade your bond funds and bond ETFs.

Years ago the late Marty Zweig created a tactical trend following bond model. We recently did some customized work and updated a model Marty co-created with Ned Davis Research in the mid 1980s. The rules have remained in place since then, the model has continued to perform well and it has been properly positioned in bonds this year.  Of course, there are no guarantees in this business.  This is a mathematical process you could track and trade on your own.

Here is how this particular tactical trend following process works:

Monday, May 26, 2014

The top 25 companies for pay and perks

Google (GOOG), Costco (COST) and Facebook (FB) top a new Glassdoor survey of companies with great salaries and benefits. What can we learn from them and the rest of the top 25 about attracting and retaining talent? Why is now the time to study their examples?

Pay is a hot topic, cropping up in all sorts of discussions -- from the fast-food industry to state minimum wage laws and speculation about the why The New York Times recently fired its first woman executive editor.

It's not surprising, then, that 39% of American workers in a recent Glassdoor survey say they believe they don't get paid fairly for their efforts. When that much of the workforce -- 42% of women surveyed and 34% of men -- feel they're under-compensated for their work, employee motivation and performance suffer.

Despite talk at the city and state level about living-wage standards and President Obama's recent executive order on equal pay and a higher minimum wage for federal contract employees, 57% of the workers surveyed said it's up to employers, rather than the government, to take care of the issue. The top items on their wish list are better pay policies, clearer top-down communication, and greater transparency about pay.

But there are companies that earn raves from employees for pay, benefits, and working conditions. On Friday, Glassdoor released its first report on the top 25 companies for compensation and benefits. The results are based on a year's worth of verified feedback from U.S. employees who use the career community website.

Naturally, the list features companies that pay well, but what stands out are the responsive and often creative benefits -- everything from flex-time and work-from-home options to more esoteric perks like pet insurance and onsite hair salons.

Top industries in the top 25

The tech sector makes up almost half of the list, with 12 companies earning top marks for pay and benefits, including Google, Microsoft (MSFT) and Adobe (ADBE).

Pharmaceutical and biotechno! logy make up the second-largest group with three representatives: Genentech, Amgen and Pfizer.

Costco, at No. 2 on the list, is the only retailer to make the chart, along with one company each from the insurance, transportation, energy and travel industries. Not surprisingly, no fast-food companies made the list.

1. Google
2. Costco
3. Facebook
4. Adobe
5. Epic
6. Intuit
7. USAA
8. Chevron
9. Salesforce.com
10. Monsanto
11. Genentech
12. Kaiser Permanente
13. Qualcomm
14. Riverbed
15. Verizon
16. Vmware
17. T-Mobile
18. Microsoft
19. Amgen
20. Pfizer
21. Southern California Edison
22. Orbitz
23. Procter & Gamble
24. Union Pacific
25. eBay

More than money

It's no secret that the tech sector pays well, and companies like USAA and Costco are legendary within their industries for employee satisfaction. But employees also cited interesting perks, beyond health insurance and 401K plans, as part of their satisfaction at work.

More control over their time, in one form or another, topped the wish list of employees in Glassdoor's fair-pay survey. More women than men want flex time and work from home options (men tend to prefer company stock), but the most-coveted perk was more vacation time. More than 60% of survey respondents would claim that benefit if they could.

Among the top 25, 10 companies -- including Chevron, Kaiser Permanente, and Orbitz -- were cited by workers for their vacation and personal day policies, flex-time options, and telecommuting arrangements.

Travel and an awesome home base

Google and salesforce.com in particular were mentioned by employees for fun business-travel destinations and for a home office worth coming back to. Hawaii is a recurring theme.

"I've been on off-sites to Tahoe, Vegas, and Hawaii in the last year," said a Google senior software engineer. And yet "the company creates an environment where you don't really want to leave campus." A Sales! force acc! ount executive was similarly enthusiastic about the office and company off-sites, describing a "very upbeat atmosphere" along with trips to Hawaii.

Working hard may be its own reward sometimes, but extra cash is even more rewarding. Bonuses were a repeated theme among Costco and USAA employees in the top 25 survey. The fair-pay survey didn't break out bonuses specifically as a desired perk, but it's hard to imagine anyone turning them down.

Onsite services for employees

Google and other companies know that employees who aren't leaving frequently for errands and appointments across town are less stressed and distracted. This has given rise to some perks that seem more suited to a resort than an office park, such as the onsite chiropractor and acupuncturist mentioned by a Facebook program manager based in Menlo Park, Calif. Gyms, day care centers, health and dental clinics, fine dining and hair salons helped push other companies onto the list.

Adobe stood out among the top 25 for offering pet health insurance to its employees along with a long list of pluses, such as a top-notch employee stock purchase plan, onsite gyms and spaces to relax during the work day.

Lessons for companies who want top talent

What can companies who want to attract and keep the best employees take away from these results? Scott Dobroski, Glassdoor community expert, said good salaries are just part of the total package.

"There are other pieces all employers can evaluate for their own company and do their best to offer employees. This can include offering bonuses, flexible schedules, more paid time off, the option to work remotely, health benefits beyond general health and dental, stock options and more."

He noted that what works for one company may not be the best fit for another. "What's key is determining what works best for your workforce and gauging employee feedback to determine what they want and what will make them more satisfied in and out of work."

Creating a straightfo! rward com! pensation structure is a big potential benefit too, according to Rusty Rueff, Glassdoor career and workplace expert. "When employees have a clearer understanding of how they're being compensated without secrecy around salaries, not only can they feel empowered in their current jobs, they're also often motivated to work toward the next level, which can improve productivity."

The payoff for employers

So how do companies justify paying above-average salaries and serving up lavish perks? It's all about getting the best from employees over the long haul, according to Dobrowski.

"Employees value a total compensation and benefits package when it comes to their overall job satisfaction, which can certainly impact how productive they are, how committed they are and how long they potentially stay with a company," he said. And it's not just about salary. "Glassdoor surveys show that employees value career opportunities and interesting work as some of the top considerations when determining where to work."

And if that interesting work happens to reward employees with great pay, flexible scheduling and trips to Hawaii, so much the better.

The Motley Fool is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

Sunday, May 25, 2014

More Strong Housing Numbers Propel S&P to New Record

Records fell on Wall Street Friday as another solid report on housing lifted the market for the second day in a row. There's a three-day weekend coming up -- something that often prompts investor caution -- but the gains were broad-based even though volume was fairly light. The VIX, which measures volatility, fell to its lowest level this year. The Dow Jones industrial average (^DJI) gained 63 points, the Nasdaq composite (^IXIC) rose 31, and the Standard & Poor's 500 index (^GPSC) added 8, topping the record high set last week. The Dow Transportation average also raced to an all-time high, lifted by airline stocks. United (UAL) soared more than 4 percent; Delta (DAL) gained more than 1 percent and Southwest (LUV) gained 2 percent. Southwest is at an all-time high, up 79 percent from a year ago. New home sales bounced back with a better than expected 6.4 percent increase last month. Lennar (LEN) and D.R. Horton (DHI) both rose 4 percent. Pulte (PHM), Beazer (BZH) and Hovnanian (HOV) also solid posted gains. Earnings continue to drive retail stocks. Gap (GPS) edged higher even though net fell. Foot Locker (FL) gained 1½ percent after topping expectations. GameStop (GME) rose 4 percent. Its net rose, helped by the rollout last year of new Xbox and PlayStation consoles. Zumiez (ZUMZ) rose 5½ percent on an earnings beat. But Aeropostale (ARO) tumbled 24 percent. Its loss widened and sales declined. The retailer continues to struggle with teen fashion trends. Also on the earnings front, TiVo (TIVO) rose 2 percent as it swung to a profit from a year ago loss. It also reported an increase in the number of subscribers. Hewlett-Packard (HPQ) rose 6 percent on news the company plans to eliminate up to 16,000 additional workers in an effort to cut costs. And several stocks extended big moves from yesterday. Best Buy (BBY) rose more than 3 percent for the second straight day after earnings beat expectations. Isis Pharmaceuticals (ISIS) jumped another 11 percent. And RetailMeNot (SALE) dropped another 6 percent thanks to a report that its coupon site has lost about one-third of its traffic following changes to Google's search algorithms. But the company says the report grossly overstates the impact of the Google change. Finally, PTC Therapeutics (PTCT) soared 32 percent after winning conditional EU approval for its treatment of Duchenne Muscular Dystrophy. What to Watch Monday: U.S. stock and bond markets are closed for Memorial Day. What to Watch Tuesday: The Commerce Department releases durable goods for April at 8:30 a.m. Eastern time. Standard & Poor's releases the S&P/Case-Shiller index of home prices for March and the first quarter at 9 a.m. The Conference Board releases the Consumer Confidence Index for May at 10 a.m. Retailers AutoZone (AZO) and Wet Seal (WTSL) release quarterly financial statements. -.

Saturday, May 24, 2014

GM faulty ignition crashes now 47

gm ignition switch

This is the 57-cent part at the center of GM's recall crisis.

NEW YORK (CNNMoney) More crashes are now being attributed to faulty ignitions in General Motors vehicles.

GM (GM, Fortune 500) has raised the number of frontal-impact crashes linked to the problem ignitions to 47 from 32, according to company spokesman Greg Martin.

Because of the flawed ignition, key rings holding more than one key could cause the ignition to suddenly switch to the off position. That can lead to a loss of power -- locking the steering wheel and interrupting airbags from deploying in an accident.

GM says the number of deaths tied to front impact crashes stemming from this defect remains at 13.

On Friday, the National Highway Traffic Safety Administration reportedly said the number of deaths tied to the problem was likely higher.

"The final death toll associated with this safety defect is not known to NHTSA, but we believe it's likely that more than 13 lives were lost," NHTSA said in a statement reported by the Detroit News. GM spokesman Jim Cain said the automaker was aware of the report and that "if necessary we will adjust the number."

NHTSA has not responded to CNN's requests for comment.

GM has come under fire for the way it handled the flawed ignition switch.

Company employees knew about the defect for more than a decade before a recall was initiated in February 2014. So far, the automaker has recalled 2.6 million cars worldwide due to the ignition switch.

CEO Mary Barra has revamped how GM handles safety issues. A new unit charged with quickly uncovering safety defects has begun to aggressively issue recall notices for problems beyond the ignition switch.

The company has initiated 30 separate recalls covering 13.8 million U.S. cars and trucks, and 15.8 million vehicles worldwide, in 2014. That's more cars and trucks than GM sold in the five years since emerging from bankruptcy protection in 2009.

So far GM has agreed to pay the maximum fine of $35 million to NHTSA for the delay in the ignition recall. And it will be subject to closer oversight by the regulator.

The Justice Department is also considering whether to bring criminal charges against the automaker. A similar probe over Toyota's 2009 and 2010 unintended acceleration recalls led t! o a $1.2 billion fine earlier this year.

The company estimates it will cost $1.7 billion to repair the cars recalled so far in 2014. That expense essentially erased the profit the company would have reported in the first quarter.

GM shares are down 18% this year, lagging behind rivals Toyota (TM) and Ford Motor (F, Fortune 500).

-CNNMoney's Chris Isidore and CNN's Chris Kokenes contributed to this report. To top of page

Thursday, May 22, 2014

Top Consumer Service Stocks To Own For 2015

Top Consumer Service Stocks To Own For 2015: Horizon Technology Finance Corporation (HRZN)

Horizon Technology Finance Corporation, a specialty finance company, lends to and invests in development-stage companies in the United States. It provides secured loans to companies backed by established venture capital and private equity firms in the technology, life science, healthcare information and services, and cleantech industries. Horizon Technology Finance Corporation was founded in 2008 and is based in Farmington, Connecticut.

Advisors' Opinion:
  • [By BDC Buzz]

    I believe investors should look past the current low dividend yields and relatively higher multiples of NAV per share for BDCs such as FDUS, MAIN, and TCAP, but should consider the total return for these companies. The table below compares FDUS and MAIN to both ACAS which does not pay dividends and Horizon Technology Finance (HRZN) that pays a higher than average dividend but after taking into account dividend growth, special dividends, and NAV per share growth (using last twelve months actual for projection purposes) it is clear that the expected investor return is based on more than the current dividend yield.

  • source from Top Stocks Blog:http://www.topstocksblog.com/top-consumer-service-stocks-to-own-for-2015.html

Samsung Is Taking a Big Risk That Makes It a Risky Investment

Samsung (SSNLF) is facing increased scrutiny from Apple (AAPL) and is concerned about its own over-reliance on Google. That's left it with few choices, so it's increasingly looking to go it alone, a risky proposition.

Friends and Enemies

Samsung and Apple became close friends when the Korean giant stepped up to provide key parts for the iPod. As that product grew in popularity, so too did the relationship between the two partners. When the iPhone came out, Samsung's involvement was a given.

Since that time, however, Samsung has brought out its own competing products. They look remarkably similar to Apple's iPhones and iPads. They are the only truly competitive offerings to Apple in the market, which recently announced that it would start to shift some of its chip needs to a new supplier. Although the two will continue to do business, it's clear that Apple wants to diversify away from a partner that is also a competitor.

Androids

Google's Android mobile operating system is the foundation on which Samsung has based its most popular products. However, that's a big risk, since Google is also in the cell phone space and is increasingly creating other devices, too. To that end, Samsung is set to launch its own mobile OS, called Tizen later this year. That's a risky bet to make at a difficult juncture for the company.

Going it Alone

Nokia tried to create its own OS and failed. It essentially gave up on the effort and, instead, partnered with Microsoft to create a Windows Mobile based phone. The Lumia has been well received, but hasn't sold particularly well. That's one reason to avoid Nokia, which has been shedding market share for years in developed markets and faces a long road to turn things around, if it can.

Revenues falling since 2007, losing money in each of the last two years, and eliminating its dividend to help shore up its finances are other good reasons to stay away. It's also a warning for Samsung that building your own OS is hard to do and even if you do build it, it could be hard to get customers to use it.

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Installed Base

One Advantage that Samsung has over Nokia and Microsoft in this effort is a massive installed base of customers. Since so many people know Samsung's Galaxy line as the "hot brand," getting users to try out Tizen may not be as hard as Nokia trying to win back customers. However, if Tizen disappoints, Samsung could have a public relations nightmare on its hands.

Apple, which has been shifting away from its reliance on Google, too, incurred the wrath of the markets when its maps application couldn't competently replace Google Maps. Although that didn't hurt sales, which continued to grow at an impressive clip despite the Maps gaff, an entire operating system is a different issue. That could quickly turn customers off from Tizen products and, perhaps, the Samsung brand.

Getting a Beatdown

Some of these concerns are behind the recent price drop at Samsung. Although the company remains wildly profitable and is a leader in the device space, investors shouldn't get underneath this falling knife. Apple's decline is a clear demonstration of how bad the market can overreact on both the upside and downside.

For example, Apple shares are now some 40% below their peak. Although the company has its own set of issues to deal with, its price to earnings ratio is only about 10 and it sports a yield of around 2.9%. The big price drop and notable yield provide a nice support for the shares. In fact, Apple is looking like a value stock.

Big Changes, Fickle Market

Investors considering an investment in Samsung might be better off with Apple shares. Investors can be very fickle and Apple's bad news has already taken a toll on the shares. Samsung is taking a big risk with its home-grown OS while seeing slowing demand, which could turn ugly fast for shareholders.

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Tuesday, May 20, 2014

This Chart Shows How Huge the Alibaba IPO Will Be

The Alibaba IPO was officially filed earlier this month, and analysts estimate that the deal could be the largest initial public offering in U.S. history.

Alibaba IPOBloomberg has estimated that the Hong-Kong based e-commerce firm could be valued as high as $168 billion and will be selling a 12% stake in the company through the IPO. That means the company would raise $20.16 billion through its IPO.

That total would outpace the largest U.S. IPO to date, Visa Inc. (NYSE: V), which raised $19.65 billion when it hit the market on March 13, 2008. General Motors Co. (NYSE: GM) checks in at No. 3 on the list, having raised $18.14 billion in its 2010 IPO.

With a valuation of $168 billion, Alibaba will still be smaller than Apple Inc. (Nasdaq: AAPL) and Google Inc. (Nasdaq: GOOG, GOOGL), which have market caps of $508 billion and $356 billion, respectively. However, Alibaba's market cap will be bigger than Facebook Inc.'s (Nasdaq: FB) $148 billion, Amazon.com Inc.'s (Nasdaq: AMZN)$136 billion, and eBay Inc.'s (Nasdaq: EBAY) $65 billion.

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Note: The IPO market has been frenzied in 2014, with 107 companies hitting the market. Here are the best 8 IPOs on the horizon...and 3 to avoid. Read More...

The valuation may be huge, but it's warranted.

"Alibaba is among the top three Internet operations in China, the world's second largest economy," Wired's Ryan Tate wrote recently. "According to its filing, the company pulled in $5.6 billion in revenue and $1.4 billion in profit last year. Gross sales from its three largest sites - Taobao (similar to Amazon), Tmall (similar to eBay), and Juhuasuan (group buying) - totaled $248 billion. And nearly 20% of its business comes from mobile devices, which means it oversees about 76% of China's mobile e-commerce. The company claims 231 million active buyers and 8 million active sellers across all its sites, and it's growing at a rapid clip. Revenue spiked 72% last year, according to [the securities] filing."

Investors will continue to receive updates on the IPO price as the Alibaba IPO date approaches. Most are expecting the initial public offering to take place in late 2014.

But you don't have to wait until then to start making money off this monster IPO…

Our newest research has led us to a way for you to make a fortune on the Alibaba deal right now... long before the shares go public. Your gains, in fact, could exceed those of the IPO's original investors. It could be your one and only chance to make the kinds of gains normally reserved for the high-net-worth investors and bankers. You can learn more about this Alibaba profit play here.  

Monday, May 19, 2014

To Many Chinese, Cars Like Tesla's Model S Appear To Be Unmanageable

Elon Musk's announcement of a deal with Hanergy to build supercharging stations in China may have temporarily drawn attention away from Tesla's lack of progress in setting up an adequate network of charging stations. But it appears that he may be overlooking another important issue: What is the attitude of ordinary Chinese car owners toward pure electric cars?

In order to drive up the popularity of the Model S, Musk and his sales team have thus far been targeting the rich to be Tesla's first batch of customers. And selling their cars to these early adopters with deep pockets who want to be the first to show off their hi-tech toys looks like a smart move.

But eventually the mass market should be the key objective, and practical concerns appear to weigh heavily on the minds of many Chinese drivers. It seems that a great deal of work still needs to be done before many Chinese families would commit to buying a new technology car.

Putting aside Musk's aspiration to put new technology into practice, perhaps some sort of marketing research of testing the trend could be a useful indicator.

Last Friday, the China Association of Automobile Manufacturers issued a press release announcing the launch of a new energy car promotion center in Beijing. The mission of the center is to exhibit the history of pure electric cars and explain the country's preferential policies, as well as the distribution of recharging stations.

Although the announcement itself was nothing exciting, it hints at something more interesting that comes up if you talk to ordinary drivers. By chance, I chatted with a friend in Guangzhou, surnamed Liu, about the general acceptability of pure electric cars in China now. The first word he threw to me is "trouble." Regardless of the price of these cars, there are still a lot of pragmatic questions that have yet to be answered, he said.

From recharging to durability to safety, carmakers have not yet provided much information on how to drive a pure electric car (be it a model from BYD or Tesla) like driving Toyota's Corolla, Ford's Focus or General Motor's Buick.

No one knows how long the transformation from petrol-engine cars to pure electric wheelers will eventually take, but if the transition from pickup trucks to small family cars is any indication – we could be looking at about 20 years for the same dynamics to unfold.

Detroit Electric car charging Detroit Electric car charging (Photo credit: Wikipedia)

Liu, whose family just welcomed a baby girl, is a holiday driver. Driving his own car for work would only consume most of his commute time to sit in traffic. He said buying a pure electric car is not even a topic among his circle of friends. For ordinary car-owners, it boils down to practicality.

Liu explained that whenever he or his friends think of the new technology that might expose them to some unresolved issues or hang-ups, they will immediately drop the idea out of hand no matter how appealing the underlying technology may be.

Since Musk or Tesla started to garner so much attention from the Chinese media, many Chinese are like bystanders waiting to see if this American car firm can eventually succeed. But before that happens, innovators like Musk and his team may find that overcoming ordinary consumers' resistance will be a lot harder than building a few more charging stations.

Follow me on Twitter @WongKandy and on Forbes.