Top 10 Performing Companies To Buy For 2014

Netflix (NASDAQ: NFLX  ) is the best performing stock on the S&P 500 in 2013 -- up more than 135% in four months. It's a different story from a year ago, and the complete opposite of what was happening around summer 2011. Coming up on two years since the complete disaster that was Netflix's policy changes and DVD spinoff, the company has now soared to new heights and is likely to be bound for more. While it was not the actions of any one party, there is an important lesson for businesses and investors to learn. As demonstrated by Reed Hastings, here is how to make a full recovery from a serious case of business idiocy.

Dream come true
For the value-conscious and technological skeptics among us, it was a joyous time when Netflix plunged from its $300-per-share days to near $50.

Top 10 Performing Companies To Buy For 2014: FKP Property Group (FKP.AX)

FKP Limited is a real estate investment holding manager. Through its subsidiaries, the firm operates through retirement, development, land and funds management and property investment. It primarily engages in development comprising commercial, industrial, retail, and residential; construction; land subdivision; retirement village ownership and management; property investment; and asset management. The firm invests in real estate markets of Australia. From Land division, it engages in the acquisition of land for development and sale ranging from small infill projects to master planned residential communities. From Property Development, the firm engages in the development and construction of residential commercial, retail, retirement villages, and industrial properties. From the Retirements division, the firm engages in the management of retirement villages. Through Investment and Funds Management, it engages in the investment and management of income producing properties, a nd managed investment schemes. FKP is based in Brisbane, Australia.

Top 10 Performing Companies To Buy For 2014: Domino's Pizza Inc(DPZ)

Domino?s Pizza, Inc., through its subsidiaries, operates as a pizza delivery company in the United States and internationally. The company sells and delivers pizzas under the Domino?s Pizza brand name. As of January 1, 2012, it operated through a network of 9,742 stores, including 394 company-owned stores and 9,348 franchise stores located in the 50 states and approximately 70 international markets. Domino?s Pizza, Inc. was founded in 1960 and is headquartered in Ann Arbor, Michigan.

Advisors' Opinion:

• [By Roberto Pedone]

  Domino's Pizza(DPZ) is a pizza delivery company in the U.S. This stock is trading up 2.8% at $34.41 in recent trading.

  Today's Volume: 464,000 shares

  Average Volume: 1 million shares

  Volume % Change: 50%

  From a technical standpoint, DPZ is starting to break out today above some past overhead resistance at $33.70 on decent volume. Market players should now watch for a sustained high-volume move and close above $33.70 and then $35.

  If we get that action, this stock will then be trading in all-time high territory, which is very bullish.

Hot China Companies To Watch For 2014: Baxter International Inc. (BAX)

Baxter International Inc., through its subsidiaries, develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. It operates in three segments: BioScience, Medication Delivery, and Renal. The BioScience segment processes recombinant and plasma-based proteins to treat hemophilia and other bleeding disorders; plasma-based therapies to treat immune deficiencies, alpha 1-antitrypsin deficiency, burns and shock, and other chronic and acute blood-related conditions; products for regenerative medicine, such as biosurgery products; and vaccines. The Medication Delivery segment manufactures intravenous solutions and administration sets; premixed drugs and drug-reconstitution systems; pre-filled vials and syringes for injectable drugs; intravenous nutrition products; infusion pumps; and inhalation anesthetics. It also offers products and services related to pha rmacy compounding, drug formulation, and packaging technologies. The Renal segment provides products to treat end-stage renal disease or irreversible kidney failure. It manufactures solutions and other products for peritoneal dialysis, a home-based therapy; and distributes product for hemodialysis, which is conducted in a hospital or clinic. It markets its products to hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors? offices, clinical and medical research laboratories, and patients at home under physician supervision. The company was founded in 1931 and is based in Deerfield, Illinois.

Advisors' Opinion:

• [By CRWE]

  Baxter International Inc. (NYSE:BAX) reported results from two large, international multicenter trials demonstrating that a low glucose peritoneal dialysis (PD) regimen favorably impacted metabolic measures important for end-stage renal disease (ESRD) patients with diabetes, including blood glucose (sugar) control and selected lipids (fats and cholesterol).

• [By CRWE]

  Baxter International Inc. (NYSE:BAX) reported that the U.S. Food and Drug Administration (FDA) has approved GAMMAGARD LIQUID 10% [Immune Globulin Infusion (Human)] as a treatment for multifocal motor neuropathy (MMN).

Top 10 Performing Companies To Buy For 2014: Vishay Intertechnology Inc. (VSH)

Vishay Intertechnology Inc. designs, manufactures, and supplies discrete semiconductors and passive components. The company operates in five segments: MOSFETs, Diodes, Optoelectronic Components, Resistors & Inductors, and Capacitors. The MOSFETs segment offers low- and medium-voltage TrenchFET MOSFETs, high-voltage planar MOSFETs, high voltage Super Junction MOSFETs, power integrated circuits, and integrated function power devices. The Diodes segment provides rectifiers, small signal diodes, protection diodes, thyristors/silicon-controlled rectifiers, and power modules. The Optoelectronic Components segment offers infrared (IR) emitters and detectors, IR remote control receivers, optocouplers, solid-state relays, optical sensors, light-emitting diodes, seven-segment displays, and IR data transceiver modules. The Resistors & Inductors segment provides film, wirewound, power metal strip, variable, and non-linear resistors, as well as battery management shunts, chip fuses, ne tworks/arrays, magnetics, and connectors. The Capacitors segment offers tantalum, ceramic, film, power, heavy-current, and aluminum capacitors. The company�s semiconductor components are used for various functions, including power control, power conversion, power management, signal switching, signal routing, signal blocking, signal amplification, two-way data transfer, one-way remote control, and circuit isolation; and passive components are used to restrict current flow, suppress voltage increases, store and discharge energy, control alternating current and voltage, filter out unwanted electrical signals, and perform other functions. It serves industrial, computing, automotive, consumer, telecommunications, power supplies, military, aerospace, and medical markets. Vishay Intertechnology offers its products to the manufacturers primarily in the United States, Europe, and Asia. The company was founded in 1962 and is headquartered in Malvern, Pennsylvania.

Top 10 Performing Companies To Buy For 2014: Zillow Inc (Z)

Zillow, Inc. (Zillow), incorporated on December 13, 2004, is a real estate and home-related information marketplaces. Zillow provides products and services to help consumers through every stage of homeownership buying, selling, renting, borrowing and remodeling. The Company make home-related decisions, and enabling homeowners, buyers, sellers and renters to find and connect with local professionals. Individuals and businesses that use Zillow have updated information on more than 37 million homes and have added nearly 100 million home photos. These profiles include detailed information about homes such as property facts, listing information, and purchase and sale data. In June 2012, the Company acquired RentJuice Corporation. In October 2012, the Company acquired Buyfolio, an online and mobile collaborative shopping platform. In December 2012, the Company acquired San Francisco-based HotPads, a map-based rental and real estate search site.

Zillow generates revenues from local real estate professionals, primarily on an individual subscription basis, and from mortgage professionals and brand advertisers. The Company�� revenues include marketplace revenues, consisting of subscriptions sold to real estate agents and advertising sold on a cost per click (CPC) basis to mortgage lenders, and display revenues consisting of advertising placements sold primarily on a cost per thousand impressions (CPM) basis. The Company provides current home value estimates, or Zestimates, and current rental price estimates, or Rent Zestimates, on approximately 100 million United States homes.

Marketplace Revenues

Marketplace revenues consist of subscriptions sold to real estate agents under its Premier Agent program and CPC advertising related to the Company�� Zillow Mortgage Marketplace sold to mortgage lenders. The Company�� premier agent program offers a suite of marketing and business technology solutions to help real estate agents grow their businesses and personal brands. The! premier agent program allows agents to select products and services that they can tailor to meet their business and advertising needs. In Zillow Mortgage Marketplace, participating qualified mortgage lenders make a prepayment to gain access to consumers interested in connecting with mortgage professionals. Consumers who request rates for mortgage loans in Zillow Mortgage Marketplace are presented with personalized lender quotes from participating lenders. The Company charges mortgage lenders a fee when users click on their links for more information regarding a mortgage loan quote. Mortgage lenders who exhaust their initial prepayment can then prepay additional funds to continue to participate in the marketplace.

Display Revenues

Display revenues primarily consist of graphical Web and mobile advertising sold on a CPM basis to advertisers primarily in the real estate industry, including real estate brokerages, home builders, mortgage lenders and home services providers. The Company�� advertising customers also include telecommunications, automotive, insurance and consumer products companies.

Advisors' Opinion:

• [By Roberto Pedone]

  My final earnings short-squeeze play today is real estate and home-related information marketplace player Zillow (Z), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Zillow to report revenue of $37.39 million on a loss of 3 cents per share.

  The current short interest as a percentage of the float for Zillow is extremely high at 27.6%. That means that out of the 21.77 million shares in the tradable float, 5.4 million shares are sold short by the bears. This is a stock with a very high short interest and low tradable float. This is the perfect combination needed for a monster short-squeeze, so make sure to have this name on your post-earnings earnings trading radar.

  From a technical perspective, Z is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $23 to its recent high of $63.24 a share. During that move, shares of Z have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of Z within range of triggering a near-term breakout trade post-earnings.

  If you're in the bull camp on Z, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $62.50 to $63.24 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 736,000 shares. If that breakout triggers, then Z will set up to enter new 52-week and all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $70 to $75 a share.

  I would simply avoid Z or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support at $60 a share with volume. If we get that move, then Z will set up to re-test or possibly take out its next major support levels at its 50-day moving average of $53.39 a share to $51 a share.

Top 10 Performing Companies To Buy For 2014: Tiger International Resources I (TGR.V)

Tiger International Resources Inc., through its subsidiary, engages in the acquisition, exploration, and development of mining properties in the Philippines. The company explores for gold and copper. It primarily holds interest in the Esperanza Gold project covering an area of 340 hectares located near Baguio City in northern Luzon. The company is based in Laguna Hills, California.

Top 10 Performing Companies To Buy For 2014: TeleNav Inc.(TNAV)

TeleNav, Inc. provides personalized navigation and location based services (LBS) in the United States and internationally. It offers GPS Navigator, a voice guided, real time, turn by turn mobile navigation service on a white label basis, such as Sprint Navigation and AT&T Navigator, as well as under the TeleNav brand. The company also provides mobile resource management solutions that allow enterprises to monitor and manage mobile workforces and assets by using its LBS platform to track job status and the location of workers, field assets, and equipment. Its enterprise solutions include TeleNav Track service, as well as TeleNav Vehicle Manager, TeleNav Vehicle Tracker, and TeleNav Asset Tracker. In addition, the company offers mobile navigation services through on-board and connected systems. Further, it focuses on developing LBS to new device platforms, such as tablet devices, as well as new LBS for mobile phones, including location based mobile advertising, commerce, and social networking. The company distributes its services to consumers, wireless carriers, enterprises and automobile manufacturers, and original equipment manufacturers through its wireless carrier partners, as well as through its Web site and mobile phone application stores. TeleNav, Inc. is headquartered in Sunnyvale, California.

Top 10 Performing Companies To Buy For 2014: Iris Biotechnologies(IRSB.OB)

Iris BioTechnologies Inc., a development stage life science company, focuses on developing solutions for the detection and monitoring of monogenic and complex genomic diseases. The company provides a Nano-BioChip gene expression kit using a convergence of scientific disciplines in nanotechnology, semiconductor manufacturing, microfluidics, chemistry, molecular biology, genetics, genomics, and information technology; and BioWindows artificial intelligence system, a database comprising data fields for patient demographics information, personal and family medical history, and gene expression information. Its products assist in establishing the foundation for personalized medicine for the treatment of breast cancer. The company also intends to use its product platform to diagnose and treat patients with neurological disorders, heart disease, diabetes, and other gene-related metabolic problems. In addition, it is working on gene markers for CancerChip and specific markers assoc iated with prostrate, lung, liver, kidney, and ovarian cancers, as well as genes associated with schizophrenia, Alzheimer disease, autoimmune system disorders, and metabolic and drug metabolism disorders. The company was founded in 1999 and is headquartered in Santa Clara, California.

Top 10 Performing Companies To Buy For 2014: Rh Petrogas Limited (T13.SI)

RH Petrogas Limited engages in the exploration, development, and production of oil and gas properties. It develops and produces hydrocarbon in Fuyu 1 Block in the Songliao Basin, Jilin Province, the People�s Republic of China; and explores and produces petroleum in West Belida Block, Jambi, South Sumatra, Indonesia covering an area of approximately 1,402 square kilometers. RH Petrogas Limited also has a total of 60% of the Basin PSC and 33.2% of the Island PSC, which are contiguous blocks located in the Birds Head area of West Papua, Indonesia covering an area of approximately 2,000 square kilometers onshore and offshore. The company was formerly known as Tri-M Technologies (S) Limited and changed its name to RH PetroGas Limited in November 2009. RH Petrogas Limited is headquartered in Singapore.

Top 10 Performing Companies To Buy For 2014: Jones Soda Co.(JSDA)

Jones Soda Co., together with its subsidiaries, develops, produces, markets, distributes, and licenses premium beverages primarily in the United States and Canada. The company provides Jones Soda, a carbonated soft drink; Jones Zilch, a zero calories product in black cherry, pomegranate, and vanilla bean flavors; WhoopAss Energy Drink, an energy supplement drink; and WhoopAss Zero Energy Drink, an energy supplement drink with zero sugar. It also offers various products, including soda with customized labels, wearables, candy, and other items online. The company sells and distributes its products through its network of independent distributors and national retail accounts. Jones Soda Co. was founded in 1986 and is based in Seattle, Washington.

Coca-Cola to Launch Slim Cans ??? FT - Analyst Blog

The Financial Times recently reported that cola giant The Coca-Cola Company (KO) will launch smaller and slimmer versions of its Coke, Diet Coke and Coke Zero brands of soft drink cans in U.K. later this month.

Coca-Cola will launch a 250 ml can, which will contain 105 calories as compared to 139 calories in the larger 330 ml can. The slimmer cans are expected to be priced at the same rate per 100 ml as its larger counterpart.

Beverage giants are witnessing a decline in the sales of carbonated soft drinks (CSD), especially the colas, due to rising health consciousness and increasing public and governmental concerns regarding obesity and other co-morbidities.

To reinvigorate the sales of its sparkling beverages, like Coke and Fanta, The Coca-Cola Company is offering more choices to its customers in package sizes, sweeteners and beverages (including more low- and no-calorie selections). The new slim cans are part of this ongoing plan.

Other beverage companies are also gearing up to cater to the emerging trend. PepsiCo, Inc.'s (PEP) low-calorie cola, Pepsi Next, which contains 60% less sugar, achieved nearly $100 million in retail sales in less than 12 months in the market. PepsiCo is now making evolutionary natural sweeteners and flavorings aimed at reducing calories to re-vitalize declining sales of its colas. The food and beverage giant also aims to grow its nutrition brands like Quaker, Tropicana and Gatorade.

Following the success of Dr Pepper TEN (the low-calorie version of its Dr Pepper brand of soft drinks), Dr Pepper Snapple Group Inc. (DPS) plans to expand its TEN platform to revive its CSD sales. Accordingly, the company launched TEN versions of 7UP, Sunkist Orange Soda, A&W Root Beer, Canada Dry Ginger Ale and RC Cola brands in the U.S. in early 2013.

Coca-Cola's bottler Coca-Cola Enterprises Inc. (CCE) is also slowly shifting its product mix from colas to energy drinks and other non-carbonated beverages to benefit from this emerging health! and wellness trend.

Moreover, with consumers becoming more and more aware of the pitfalls of obesity and its popular connection made with CSDs, the beverage makers are donning the role of the new health pundits. In their more-responsible avatars, the cola giants are not only providing transparency in labeling, but are also promoting fitness and nutrition education programs. Coca-Cola also avoids marketing these sugary drinks to children under 12.

Coca-Cola carries a Zacks Rank #4 (Sell).

The Rupee's Plunge: An Opportunity? - Analyst Blog

Top Blue Chip Stocks For 2014

A Steady Decline

The Indian Rupee hit a new record low against the dollar this Monday. Falling to 61.21, the rupee was in keeping with the weakness it has suffered in recent times.

The rupee first slipped below the psychological barrier of 60 to the dollar on June 26. Since then, it has continued to slip, but for the occasional session gains. This is attributable to two major factors.

Key Reasons for the Fall

The first of these is the weakest economic growth that the country has experienced in a decade. In a report released this week, the International Monetary Fund (IMF) has lowered its projection for the country's growth to 5.6% in the current financial year. This is marginally lower than its April estimate of 5.8%.

The second reason is the alarmingly high current account deficit of the country. The most representative measure of a nation's international trade, it accounted for 4.8% of GDP in the last fiscal year.

In its report, the IMF has said that the tapering of the U.S. Federal Bank's monetary stimulus could have serious implications for developing nations. The most immediate impact would be felt in the form of capital outflows.

A winding down of the bond purchase program is a direct result of positive economic data from the U.S. This would result in a flight of foreign capital. In June itself, $7 billion of portfolio funds have exited the country.

Differential Impact

A weaker rupee has a differential impact on various economic sectors. Imports become costlier, whereas exports become cheaper. Those companies which are heavily reliant on imports stand to lose the most. These include the likes of Tata Motors Ltd (TTM).

On the other hand, exporters, especially those from the outsourcing domain such as Infosys Ltd. (INFY) and Wipro Ltd. (WIT) will gain from such an environment. They may be good additions! to your portfolio.

Incidentally, Tata Motors has an expected earnings growth of 21% and the forward price-to-earnings ratios (P/E) for the current financial year (F1) is 7.28. Expected earnings growth for Infosys and Wipro are 13.4% and 11.5%. Their P/E (F1) are 3.02 and 15.93, respectively.

Leading Indian banks will also feel the heat if the rupee continues to fall. These include the likes of HDFC Bank Ltd. (HDB) and ICICI Bank Ltd. (IBN). This is because a weak rupee would more or less rule out prospects of a rate cut.

Interest rates have been maintained at a low level to combat inflation, which has reduced somewhat only now. But a weaker dollar would result in higher oil prices, a key trigger for inflation, which is why the possibility of a rate cuts remains elusive.

Regulatory Action

The Reserve Bank of India (RBI) has now taken decisive measures to combat the situation. It has imposed restrictions on the derivatives market, focussing on currency derivatives. It has prohibited banks from trading in domestic currency futures and options. The Securities and Exchange Board of India has significantly increased the required margin to be maintained on dollar-rupee forward trades.

A significant amount of dollar demand is attributable to oil companies. The RBI has directed these companies to purchase their dollars from a single bank. It is believed that the fact that such companies were seeking more than one quote was adding to speculation and consequently, volatility.

Long-Term Measures

With elections around the corner, the Indian government can hardly afford to be complacent about the situation. Indian finance minister P. Chidambaram is currently visiting the U.S. to encourage companies to invest in India. These include the likes of Lockheed Martin Corp. (LMT), The Boeing Co. (BA), Microsoft Corp. (MSFT) and Wal-Mart Stores Inc. (WMT).

Of course, such investments can only come about only if India relaxes its FDI norms further. On the! slate ar! e plans to raise foreign stakes in supermarkets to 74%. Similarly, there is a proposal to raise the foreign investment in the defense sector to 49%.

In Conclusion

The current situation is symptomatic of a phase when developing economies need a fresh set of reforms. Though there may be some opposition to such measures, they will, in all probability, eventually go through.

And despite the current situation, India's long-term prospects remain encouraging. This is equally true of its prominent companies, including those mentioned earlier. If you're willing to weather short-term volatility, Indian stocks remain a good choice for the long term.

Gap's June Comps Rise - Analyst Blog

Gap Inc. (GPS) reported comparable-store sales (comps) increase of 7% for the 5 weeks ended Jul 6, 2013 compared with flat comps results registered for the 5 weeks ended Jul 7, 2012, driven by strong performances at its namesake Gap and Old Navy stores. Moreover, net sales totaled $1.53 billion for the 5 weeks ended Jul 6, 2013, up 8% from sales worth $1.41 billion for the 5 weeks ended Jun 30, 2012.

The difference in the year-ago period comparisons for comps and net sales is primarily due to the inclusion of an additional week in fiscal 2012.

Global brand-wise, comps performances at Gap Global were up 5% compared with a 3% fall in the prior-year period, while comps at Old Navy were up 13% compared with a 1% increase recorded in Jun 2012. However, comps at the company's Banana Republic stores registered a fall of 1% versus an increase of 4% in June last year.

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The improvement in comps and sales for June mainly resulted from favorable customer response to the company's clearance of summer assortments to make room for back-to-school merchandise.

Gap, which witnessed a phase of declining comparable-store sales and reduced profitability, is gradually returning to growth based on turnaround strategies as is evident from its solid comps and sales performances in fiscal 2013 so far.

Furthermore, in early June, Gap announced its plans for further global expansion with the opening of franchise and standalone stores in Paraguay, Hungary and Mexico. Apart from this, the company intends to extend its international operations to 8 Latin American countries, namely, Chile, Panama, Colombia, Mexico, Uruguay, Paraguay, Peru and Brazil.

Gap has been progressing well with its long-term plans by reducing dependency on the North American specialty business, while increasing its online p! resence and expanding international operations. Gap aims to generate 30% of its total sales from overseas operations and online business in 2013 versus 27% in fiscal 2012.

Apart from Gap, other retailers that came out with comparable-store sales data include, Zumiez Inc. (ZUMZ),Costco Wholesale Corp. (COST) and Stein Mart Inc. (SMRT), which reported an increase of 1%, 6% and 6.5%, respectively, for the month of June.

Gap currently carries a Zacks Rank #3 (Hold) and is scheduled to release its July sales results on Aug 8, 2013.

The Ever Friendly Fed - Ahead of Wall Street

Thursday, August 1, 2013

Favorable data out of China and follow through from the Fed's relatively market-friendly statement from Wednesday provide the favorable backdrop for today's trading action. While some tentativeness ahead of tomorrow's jobs report will be understandable, but one would reasonably expect the stock market today to sustain the positive pre-open mood throughout the session, particularly if the ISM report comes through as expected.

The Fed statement was broadly market friendly as it cracked the door open to delaying the 'Taper' from September to perhaps December or even early next year. The Fed appeared to be downgrading their economic growth outlook a bit and pointed towards low inflation readings and the rise in mortgage rates. A natural offset to those trends would be for the Fed to not do anything on the QE question, at least not any time soon.

GDP growth has undoubtedly been tepid and even the housing recovery could be at risk from the rising interest rates. But labor market data has broadly been positive, as this morning's weekly Jobless Claims numbers and Wednesday's ADP report showed. A positive jobs reading in tomorrow's BLS report, say something close to 200K, will further magnify this apparent disconnect between the labor market and GDP numbers. The question in many people's minds, including the Fed, could very well be which set of data is more accurately reflective of the economy – GDP or jobs. The market's hope will be that a continued goldilocks type of positive jobs and underwhelming GDP numbers keeps the Fed in its QE business for a long time to come.

This debate about the timing of 'Taper' notwithstanding, I strongly feel that it is coming. If it's not in September, then it's most likely in December. But there is no doubt in my mind that the Fed is itching to get out of the QE business.

Sheraz Mian
Director of Research



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Is Hertz a Buy at These Prices?

With shares of Hertz (NYSE:HTZ) trading around $26, is HTZ 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

Hertz engages in the car and equipment rental businesses around the world. The company operates in two segments: Car Rental and Equipment Rental. The Car Rental segment rents and leases various car models on an hourly, daily, weekend, weekly, monthly, or multi-month basis. This company operates car rental locations at or near airports, in central business districts, and suburban areas of cities, as well as retail used car sales locations, provides car-sharing services, and fleet leasing and management services worldwide. Hertz also sells and rents earthmoving equipment, material handling equipment, aerial and electrical equipment, air compressors, generators, pumps, small tools, compaction equipment, and construction-related trucks.

Recently, Hertz delivered earnings and revenue figures that beat Wall Street's expectations. An earnings and revenue  revenue beat are what investors are seeking out of companies that are experiencing high growth, and it seems Hertz is poised to continue growing its healthy business around the world.

T = Technicals on the Stock Chart are Strong

Hertz stock has been steadily rising over the last several years. The stock is now trading near 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? They are the 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Hertz is trading above its rising key averages, which signals neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Hertz Options	36.13%	26%	24%

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

	Put IV Skew	Call IV Skew
August Options	Flat	Average
September Options	Flat	Average

As of today, there is 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 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 what that means for Hertz’s stock.

E = Earnings Are Increasing Quarter-Over-Quarter

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

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	28.57%	130.77%	-180.30%	17.02%
Revenue Growth (Y-O-Y)	22.00%	24.25%	15.13%	3.45%
Earnings Reaction	-1.75%*	0.45%	1.65%	2.86%

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

* As of this writing

P = Excellent Relative Performance Versus Peers and Sector

How has Hertz stock done relative to its peers, Avis Budget Group (NASDAQ:CAR), United Rentals (NYSE:URI), Amerco (NASDAQ:UHAL), and sector?

	Hertz	Avis Budget Group	United Rentals	Amerco	Sector
Year-to-Date Return	61.34%	51.82%	18.76%	29.71%	33.18%

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

Conclusion

Hertz is involved in the vehicle and equipment sale and rental business all around the world. The company recently reported earnings that impressed the markets. The stock is now trading near all-time high prices, and shows no signs of slowing. Over the last four quarters, earnings and revenue figures have been rising, which has generally pleased investors. Relative to its peers and sector, Hertz has been a year-to-date performance leader. Look for Hertz to OUTPERFORM.

Neutra Corp. Targets $52B Pain Management Market (OTCMKTS:NTRR, OTCMKTS:EQLB)

Neutra Corp. (NTRR)

Today, NTRR has shed (-5.26%) down -0.020 at $.360 with 14,150 shares in play thus far (ref. google finance Delayed: 10:46AM EDT July 3, 2013), but don't let this get you down.

Neutra Corp. through a key new partnership with an innovative cannabis delivery systems provider in the medical marijuana industry, is poised to make an impact in the lucrative $52 billion pain management market.

With partner Field of View Technologies, LLC, exploring new technology in cannabis delivery systems, NTRR is ready to provide much-needed smokeless delivery systems to those most in need: patients forced to live with debilitating pain.

A recent study by Columbia University found that smoke-free cannabinoid medication was effective in treating pain. Smokeless delivery systems can be administered orally, by injection or topically, giving the patient the choice of treatment method as NTRR and Field of View set the pace in the potentially lucrative pain management market.

Neutra Corp. (NTRR) 5 day chart:

EQ Labs, Inc. (EQLB)

Last Friday (July 3), EQ Labs, Inc. (OTCMKTS:EQLB) (www.drinkeq.com) had surged (+14.29%) up +0.0005 at $.0040 with 483,933 shares in play thus far (ref. google finance Delayed:   12:32PM EDT July 3, 2013). Now at the current price of $.0040, EQLB would be considered to have experienced a (+566.66%) gain if compared to the 52 week low of $.0006.

EQ Labs, Inc. manufactures and markets energy drink products in the United States and Latin America. The company offers EQ Smart Energy Drink, in an effervescent tablet form that provides an instant energy drink once added to a beverage of choice. EQ Labs, Inc. distributes its products through national and regional distributors.

To view EQ Labs, Inc. video click link http://crwetube.com/media/eq-labs-has-entered-into-a-signed-agreement-with-l.

EQ Labs, Inc. (EQLB) 5d chart:

5 Best Dividend Stocks To Buy Right Now

CenterPoint Energy (NYSE: CNP  ) is keeping true to its steady nature and maintaining its quarterly dividend policy. The company announced that it will distribute $0.2075 per share of its common stock on June 10 to shareholders of record as of May 16. This amount matches CenterPoint's previous payout, which was dispensed in February. Before that, the company distributed $0.2025 per share.

The company is a very steady and predictable dividend payer. It tends to raise that payout at the beginning of every year.

The current dividend annualizes to $0.83 per share. That yields 3.4% at CenterPoint's current stock price of $24.32.

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5 Best Dividend Stocks To Buy Right Now: ENSCO plc(ESV)

Ensco plc, together with its subsidiaries, provides offshore contract drilling services to the oil and gas industry. The company engages in the drilling of offshore oil and natural gas wells by providing its drilling rigs and crews under contracts with international, government-owned, and independent oil and gas companies. As of February 15, 2010, it owned and operated 42 jackup rigs, 4 ultra-deepwater semisubmersible rigs, and 1 barge rig. The company also has 4 ultra-deepwater semisubmersible rigs under construction. It operates in Asia, the Middle East, Australia, New Zealand, Europe, Africa, and North and South America. The company was formerly known as Ensco International plc and changed its name to Ensco plc in March 2010. Ensco plc was founded in 1975 and is based in London, the United Kingdom.

Advisors' Opinion:

• [By Skousen]

  Ensco is a global offshore contract drilling company. Cramer holds 2,100 shares of ESV stocks. ESV has a dividend yield of 2.97% and returned -5.86% since the beginning of this year. It has a market cap of $10.94B and a P/E ratio of 16.54. Robert Rodriguez and Steven Romick invested $429 million in ESV

5 Best Dividend Stocks To Buy Right Now: Reynolds American Inc(RAI)

Reynolds American Inc. (RAI), through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. It offers cigarettes under the brand names of CAMEL, PALL MALL, WINSTON, KOOL, DORAL, SALEM, MISTY, and CAPRI; and cigarettes and other tobacco products under the NATURAL AMERICAN SPIRIT brand name, as well as manages various licensed brands, including DUNHILL and STATE EXPRESS 555. The company also provides smokeless tobacco products, including moist snuff under GRIZZLY and KODIAK brand names; pasteurized tobacco under CAMEL Snus brand name; milled tobacco under the brand name of CAMEL Dissolvables; other tobacco products, such as little cigars under WINCHESTER and CAPTAIN BLACK brand names; and roll-your-own tobacco under the brand name of BUGLER. RAI sells its products primarily through distributors, wholesalers, and other direct customers, including retail chains, as well as distributes its cigarettes to public warehouses. The compan y was founded in 1875 and is headquartered in Winston-Salem, North Carolina.

Advisors' Opinion:

• [By Jeff Reeves]

  Reynolds American (NYSE: RAI) is the tobacco giant behind such iconic brands as Winston, Camel and Kool cigarettes.

  Current Yield: 5.5% ($2.12 a share annually)

  Dividend History: In June 2010, the company paid 45 cents a share for its quarterly dividend (adjusted for a 2-for-1 split). This year, it will pay out 53 cents a share in June. That’s a nearly 16% increase.

  Dividend Outlook: According to Bloomberg, Reynolds American has a three-year expected dividend growth rate of 8.2%.

  Recent Performance: Reynolds American stock is up about 27% in the past year, compared with about 17% gains for the Dow Jones Industrial Average.

  Strong Outlook for Shares: Amid economic uncertainty and a lack of other income investments, the reliability of Big Tobacco is popular with many investors. That buying pressure is good for shares, and coupled with the fact that “sin stocks” selling guilty pleasures tend to do well in tough times, RAI has a strong sales outlook.

Top Casino Stocks To Invest In 2014: Cross(A.T.)

A.T. Cross Company engages in the design and marketing of personal and business accessories. It operates in two segments, Cross Accessory Division (CAD) and Cross Optical Group (COG). The CAD segment manufactures and markets writing instruments under the Cross brand, including ball-point pens, fountain pens, selectip rolling ball pens, mechanical pencils, and writing instrument accessories, such as refills and desk sets. It also provides various personal and business accessories, including leather goods, reading glasses, watches, desk sets, cufflinks, and stationery. This segment sells its products through direct sales force and manufacturers' agents or representatives to approximately 2,400 retail and wholesale accounts; and directly to consumers through its Web site, cross.com, and the Cross retail stores in the United States, as well as through distributors and retailers worldwide. The COG segment designs, manufactures, and markets polarized sunglasses and goggles under the Costa and Native brnads in the United States. This segment sells its products through employee representatives and manufacturers? agents to optical and sunglass specialty shops, department stores, and sporting goods retailers in the United States. A.T. Cross Company was founded in 1846 and is headquartered in Lincoln, Rhode Island.

5 Best Dividend Stocks To Buy Right Now: M&T Bank Corporation (MTB)

M&T Bank Corporation operates as the holding company for M&T Bank and M&T Bank, National Association that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. It offers business loans and leases; business credit cards; deposit products, such as demand, savings, and time accounts; and financial services, including cash management, payroll and direct deposit, merchant credit card, and letters of credit. The company also provides residential real estate loans; multifamily commercial real estate loans; commercial real estate loans; one-to-four family residential mortgage loans; investment and trading securities; short-term and long-term borrowed funds; brokered certificates of deposit and interest rate swap agreements related thereto; and branch deposits. In addition, it offers foreign exchange, as well as asset management services. Further, the company provides consumer loans, and commercial loans and leases; cred it life, and accident and health reinsurance; and securities brokerage, investment advisory, and insurance agency services. As of December 31, 2009, it had 738 banking offices in New York State, Pennsylvania, Maryland, Delaware, New Jersey, Virginia, West Virginia, and the District of Columbia; a commercial banking office in Ontario, Canada; and an office in George Town, Cayman Islands. The company was founded in 1969 and is headquartered in Buffalo, New York.

5 Best Dividend Stocks To Buy Right Now: Pepsico Inc.(PEP)

PepsiCo, Inc. engages in the manufacture, marketing, and sale of foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods (PAF); PepsiCo Americas Beverages (PAB); PepsiCo Europe; and PepsiCo Asia, Middle East, and Africa (AMEA). The PAF division offers Lay?s and Ruffles potato chips, Doritos and Tostitos tortilla chips and dips, Cheetos cheese flavored snacks, Fritos corn chips, Quaker Chewy granola bars, and SunChips multigrain snacks in North America; Quaker oatmeal, Aunt Jemima mixes and syrups, Cap?n Crunch cereal, Quaker grits, and Life cereal, as well as Rice-A-Roni, Pasta Roni, and Near East side dishes in North America; and various snack foods under Doritos, Marias Gamesa, Cheetos, Ruffles, Emperador, Saladitas, Sabritas, and Lay?s brands in Latin America. The PAB division provides carbonated soft drinks, beverage concentrates, fountain syrups, and finished goods under Pepsi, Mountain Dew, Gatorade, 7UP, Tropicana Pure Premium, Electropura, Sierra Mist, Epura, and Mirinda brands; ready-to-drink tea, coffee, and water products through joint ventures with Unilever and Starbucks; and sells concentrate to authorized bottlers, and branded finished goods directly to independent distributors and retailers. This division also manufactures third-party brands, such as Dr Pepper, Crush, Rock Star, and Muscle Milk. The PepsiCo Europe division offers Frito Lay Snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices, and Quaker foods in Europe. The AMEA division provides snack food under the Lay?s, Kurkure, Chipsy, Doritos, Smith?s, Cheetos, Red Rock Deli, and Ruffles brands; Quaker-brand cereals and snacks; and beverage concentrates, fountain syrups, and finished goods under the Pepsi, Mirinda, 7UP, and Mountain Dew brands. PepsiCo, Inc. was founded in 1898 and is headquartered in Purchase, New York.

Advisors' Opinion:

• [By Steven Goldberg]

  PepsiCo (PEP, $82.51, 2.6%) will likely never catch up with number one Coca-Cola (KO) in the soft drink business, but it is the dominant player globally in salty snacks. Brands include Lay's, Ruffles, Doritos, Cheetos and Tostitos, not to mention Quaker Oatmeal, Rice-a-Roni, Gatorade and Tropicana. The stock trades at a somewhat pricey 17 times estimated year-ahead earnings.

Repayment of 12% IDBI SLR Bonds 2012 (62nd Series)

Investors holding the bonds in the form of Promissory Notes (PNs) may please tender the same duly discharged at the concerned branch of IDBI Bank Ltd. where they were last enfaced, by February 15, 2012 to facilitate repayment in time. 

Bondholders, having investment in the form of �Entry-in-Account� with IDBI Bank, should furnish a receipt in the prescribed form (Form XIV) for the principal amount, along with the relevant Certificate of Holding to Investor Services of India Ltd, (ISIL), IDBI Building, 2nd floor, �A� Wing, Sector 11, Plot No.39, 40 & 41, CBD Belapur, Navi Mumbai 400 614 (Telephone No.022 2757 9636-40), by February 18, 2012, for obtaining the repayment in time.

In case the bonds are held in Demat form (ISIN: INE008A09257), bondholders need not furnish any document. The bonds will automatically be debited from the respective Client ID/DPID through NSDL/CDSL and redemption proceeds will be sent/remitted to the investors. Bondholders are requested to update their address and bank details, if necessary, with their Depository Participants.

Gap's June Comps Rise - Analyst Blog

Gap Inc. (GPS) reported comparable-store sales (comps) increase of 7% for the 5 weeks ended Jul 6, 2013 compared with flat comps results registered for the 5 weeks ended Jul 7, 2012, driven by strong performances at its namesake Gap and Old Navy stores. Moreover, net sales totaled $1.53 billion for the 5 weeks ended Jul 6, 2013, up 8% from sales worth $1.41 billion for the 5 weeks ended Jun 30, 2012.

The difference in the year-ago period comparisons for comps and net sales is primarily due to the inclusion of an additional week in fiscal 2012.

Global brand-wise, comps performances at Gap Global were up 5% compared with a 3% fall in the prior-year period, while comps at Old Navy were up 13% compared with a 1% increase recorded in Jun 2012. However, comps at the company's Banana Republic stores registered a fall of 1% versus an increase of 4% in June last year.

The improvement in comps and sales for June mainly resulted from favorable customer response to the company's clearance of summer assortments to make room for back-to-school merchandise.

Gap, which witnessed a phase of declining comparable-store sales and reduced profitability, is gradually returning to growth based on turnaround strategies as is evident from its solid comps and sales performances in fiscal 2013 so far.

Furthermore, in early June, Gap announced its plans for further global expansion with the opening of franchise and standalone stores in Paraguay, Hungary and Mexico. Apart from this, the company intends to extend its international operations to 8 Latin American countries, namely, Chile, Panama, Colombia, Mexico, Uruguay, Paraguay, Peru and Brazil.

Gap has been progressing well with its long-term plans by reducing dependency on the North American specialty business, while increasing its online presence and expanding international operations. Gap aims to generate 30% of its total sales from overseas operations and online business in 2013 v! ersus 27% in fiscal 2012.

Apart from Gap, other retailers that came out with comparable-store sales data include, Zumiez Inc. (ZUMZ),Costco Wholesale Corp. (COST) and Stein Mart Inc. (SMRT), which reported an increase of 1%, 6% and 6.5%, respectively, for the month of June.

Gap currently carries a Zacks Rank #3 (Hold) and is scheduled to release its July sales results on Aug 8, 2013.

Citigroup Posts Robust Earnings Again - Analyst Blog

Citigroup Inc. (C) reported impressive second-quarter 2013 earnings, with a positive surprise of about 6%. Earnings per share came in at $1.25 for the quarter, beating the Zacks Consensus Estimate by 7 cents. Moreover, earnings were up 25% from the prior-year period, driven by higher revenues and lower net credit losses.

Notably, results in the reported quarter were impacted by credit valuation adjustment (CVA) and debt valuation adjustment (DVA). Including CVA/DVA and repositioning charges, Citigroup reported earnings of $1.34 per share.

For the second quarter, Citigroup reported net income of $4.2 billion, up 45% from the prior-year quarter.

Total provisions for credit losses as well as benefits and claims for the quarter were down 25% year over year at $2.0 billion. The improvement was primarily attributable to a 25% decline in net credit losses to $2.6 billion.

Performance in Detail

Revenues came in at $20.5 billion for the quarter, up 11% from the prior-year quarter. Excluding CVA/DVA and the Akbank loss in second-quarter 2012, Citigroup revenues rose 8% from the prior-year period to $20.0 billion. Moreover, the figure exceeded the Zacks Consensus Estimate of $19.6 billion. The rise was primarily driven by revenue growth in both Citicorp and Citi Holdings.

At Citicorp, revenues came in at $19.4 billion, up 11% year over year. Excluding CVA/DVA and the Akbank loss in the second quarter 2012, revenues were $18.9 billion, up 7% year over year. Higher revenues in the Securities and Banking and Global Consumer Banking businesses led to this rise. However, declining transaction services revenues were the downside.

Further, Citi Holdings reported revenues of $1.09 billion, up 16% year over year. Revenues came in at $1.07 billion (excluding CVA/DVA), up 17% from the prior-year quarter. The rise was primarily due to an increase in Local Consumer Lending as well as Special Asset Pool revenues, partially offset by a decline in Brokerage and Asset Managemen! t revenues.

Operating expenses at Citigroup were up 1% year over year at $12.1 billion. Increased expenses mainly reflected a rise in legal and associated costs.

Credit Quality

Citigroup's credit quality improved in the reported quarter. Total non-accrual assets declined 12% year over year to $10.1 billion. The company registered a 17% year-over-year fall in corporate non-accrual loans and a 9% fall in consumer non-accrual loans.

Citigroup's total allowance for loan losses was $21.6 billion at quarter-end or 3.4% of total loans, down from $27.6 billion or 4.3% in the prior-year period.

Capital Position

Citigroup continues to build its capital levels.

As of Jun 30, 2013, the company's Basel I Tier 1 Capital Ratio was 13.3% and its Basel I Tier 1 Common Ratio was 12.2%, both reflecting the Basel 2.5 rules. Moreover, Citigroup's estimated Basel III Tier 1 Common Ratio was 10.0%, up from 9.3% in the prior quarter.

As of Jun 30, 2013, book value per share was $63.02 and tangible book value per share was $53.10, up 1% and 2% respectively, from the prior-year period end.

Citigroup's end-of-period assets were $1.88 trillion, down 2% year over year while deposits of $938 billion were up 3% year over year. Citi Holdings' assets decreased 31% from the prior-year quarter level to $131 billion and represented merely 7% of the company's total assets at second quarter-end.

Performances of Other Large Wall Street Firms

The second-quarter earnings season kick started with Wall Street biggies such as Wells Fargo & Company (WFC) and JPMorgan Chase & Co. (JPM). Wells Fargo achieved the fourteenth consecutive quarter of earnings growth by reporting earnings of 98 cents per share.

Results improved from earnings per share of 92 cents in the prior quarter and 82 cents in the year-ago quarter. Additionally, it beat the Zacks Consensus Estimate by a nickel.

On the other hand, JPMorgan delivered positive earn! ings surp! rise of about 11%. The banking giant reported record earnings per share of $1.60, surpassing the Zacks Consensus Estimate of $1.44 and the year-ago earnings of $1.21. With this, JPMorgan has delivered 6 consecutive positive earnings surprises.

Our Viewpoint

Following the volatile 2012 results, Citigroup began 2013 on a positive note and continued its impressive results into the second quarter. With the surge in revenues, on the whole, its profit level also surpassed expectations.

Citigroup's underlying franchises of the consumer businesses have remained strong but revenues have persistently been under pressure for the past several quarters. Considering the tepid economic recovery, we believe that robust top-line expansion will remain elusive in the near term.

Moreover, though Citigroup's strategy to shrink non-core assets will improve the valuation over time, the reduced Citi Holdings portfolio is expected to cause revenue challenges, partly limiting the upside potential of the stock. Additionally, with the thrust of new banking regulations, there will be pressure on fees and consequently, loan growth could remain feeble.

The clearing of the stress test this year showed how Citigroup's efforts to streamline its operations have borne fruit. Over the past few years, the company has been restructuring its business, making several layoffs, selling assets and trimming costs.

Citigroup has come a long way since 2008, when it had to take a bailout of $45 billion to survive the economic downturn. Through the stress test clearance and these restructuring initiatives, the company has shown the improvement in its capital position since 2008.

However, Citigroup should not be complacent with its capital enhancement initiatives. The company should continue to strive for improvement in its balance sheet and capital ratios.

Further, reduction in provisions for future losses and improved credit trends are expected to counter the negatives. One can cons! ider a co! mpany such as Citigroup to be a sound investment option, given its global footprint and attractive core business. It is also among the best reserved banks.

Moreover, Citigroup currently carries a Zacks Rank #3 (Hold). Among other Wall Street banking majors, Goldman Sachs Group Inc. (GS) is slated to report second-quarter earnings on Jul 16.

Will PSU buyback via tender help minority shareholders?

Coal India Limited (CIL), in its annual general meeting (AGM) held on September 18, 2012, sought the approval of its shareholders to pass an enabling resolution to amend its Articles of Association. The special resolution was sought in order to facilitate a potential buy back of its shares. Not surprisingly, the resolution was passed with more than 75% shareholders voting for the resolution. The minority shareholders did not have much say in the matter, given that by Government of India holds 90% in CIL. The amendment was proposed in accordance with a directive from the Department of Public Enterprises and was approved by the Board of the Company on May 28, 2012.

Similar was the case with companies such as NTPC, SAIL and NMDC, which passed similar resolutions in their AGMs between September 18, 2012 and September 21, 2012. The buy backs are aimed at providing an indirect way for the majority shareholder in these companies, the Government of India, to meet its fund raising targets in order to bring down the fiscal deficit.

For more than a year now, low investor appetite and volatile equity market conditions have prevented the government from selling any of its shares in the public market. Most of its disinvestment plans have been in the backburner for more than a year. Hence the government has been mulling share buy backs by cash-rich public sector enterprises as an alternative means to meet its fund raising targets. As of March 2012, four state-owned companies CIL, NTPC, SAIL and NMDC - had cash balances of more than Rs 1 lakh crores. The Articles of these companies were amended to enable them to buy-back shares from its shareholders, including the Government of India. However, such a move seems to be extremely unfriendly to minority shareholders of these companies.

Share buy backs are an alternative form of paying shareholders. In the absence of any additional investment opportunities with positive net present values; companies use their excess cash reserves to buy back shares. Shareholders deciding to exit the company are paid back in cash at the maximum buy back price (in most cases it is closer to market prices) and the remaining shareholders gain through an increase in their per share value. 

But share buy backs differ from dividends in a fundamental aspect. Assume a company where a promoter holds a substantial stake, and this company passes a resolution for both a huge interim dividend payout as well as a share buy back. In case of the dividends, all shareholders, including the promoter gets the same cash payouts regardless of the amount of dividend declared. In case of share buy backs, only the shareholders who decide to tender their shares get the payouts, while the value of the shareholders who continue to remain invested might get affected if excess cash is paid out during the buy back. Hence companies should ideally decide to go in for buy backs when market prices are trading much below their fundamental value.

In the Indian context, promoters use buy backs as a means for stake consolidation. However, as long as promoters do not use buy back as a method to remove the cash out of the company, interest of minority shareholders are not adversely affected. The problem arises when promoters are allowed to sell their shares in a buy back where promoter holds a substantial stake and can pass any resolutions in their favor. 

Under the SEBI (Buy Back) Regulations, 1998 Indian listed companies can buy back shares through two different routes:

(i) Open Market Route, where promoters are not allowed to sell their shares, and

(ii) Tender Offer Route, where promoters are also allowed to sell their shares and the offer price is fixed.

Further, in accordance with Companies Act, companies can buy back up to 10% of their share capital and free reserves through a simple Board resolution and up to 25% of their share capital plus free reserves through a Special resolution.  Through a notification dated February 07, 2012, SEBI amended the Buy Back Regulations, bringing in changes to the process timeline, public announcement norms and the allotment methodology. The amendment allows for share acceptances in the buy back in proportion to the shares held by individual shareholders as compared to the earlier norm of acceptances in proportion to the shares tendered by the shareholders in the buy back.

The problem with the tender route, particularly in cases where promoter holds a substantial stake, is that the promoter can use this method to remove cash out of the company, with minority shareholders particularly having no say in the matter. 

Also, in case of PSU buy backs through the tender offer route, given the discretionary nature of the guidelines related to determination of maximum buy back price, government in its own interest (to meet its fund raising targets) would set the maximum buy back price at higher levels, and this might conflict the interests of the minority shareholders who chose to remain invested. Subsequent amendments on the allotment methodology will also assure the government of acceptances based on their equity holding. In case of the PSU buy-backs, where the government holds more than 85%, the government will be assured of getting a majority of the proceeds at the higher buy back prices as decided by the government, while minority shareholders who chose to remain invested will be adversely affected.

SEBI should review the provisions of the Buy Back Regulations and should not allow any promoter to sell their stakes through the buy back process, particularly if the intention of the buy back is to raise money for the promoters. This will be in direct conflict to the interests of the minority shareholders.

The government should rely more on structural reforms and economic growth to meet its divestment programme targets than making procedural changes to market regulations that are not in the interest of the minority shareholders. 

The writer is lead analyst, InGovern Research Services, a proxy advisory firm

The Coca-Cola Company: 1920-1924

Best Financial Companies To Invest In Right Now

In July of 1996, Charlie Munger gave a speech entitled "Practical Thought About Practical Thought?", which presented the case of a man who is asked to plausibly demonstrate a business plan that will cause a new corporation with an initial investment of $2 million in 1884 to grow to a value of more than $2 trillion over the next 150 years (by 2034), while simultaneously paying out a large portion of its earnings as dividends. With fifteen minutes to make your pitch, how would you approach this problem?

Charlie's answer to the problem (I highly recommend reading the speech) culminates in the following conclusion: despite many follies along the way (like granting exclusive bottling rights across most of the United States in 1899 to two young lawyers from Chattanooga for the "princely sum of just one dollar", in the words of Don Keough), the company in question was on track to meet its target by 2034 if it increased its value by just 8% per annum (remember, this speech was made in 1996; at the current valuation, the market cap will need to increase closer to 12% per annum) – that company is the Coca-Cola Company (KO).

Warren Buffett made Coca-Cola a cornerstone of Berkshire Hathaway's (BRK.B) equity portfolio in 1988, and hasn't stopped talking about the attractiveness of the business since; for investors, Coca-Cola is a case study in a phenomenal business that has continually created tremendous value for its owners, despite periods of mismanagement (read Buffett's description of the years after Gouizueta's death in "The Snowball").

As such, I'm going to devote my next couple of articles to the history of this company, and its development into the behemoth it is today; with annual reports dating back to the company's first decade as a publicly traded company nearly a century, I plan on taking readers on a yea! r by year walk-through of the historic developments that have culminated in the creation of the world's most valuable brand (note – my expectation is for articles to cover five years on average).

1920–1924: "COCA-COLA THROUGHOUT THE WORLD"

On December 31st, 1920, after nearly one full year as a public company (September 1919) under the leadership of President Charles H. Candler, The Coca-Cola Company had just over $40 million in assets, less than half of which were tangible assets; even in the early years, the importance of brand equity was paramount – "Although the Company's good will is by far its most valuable asset, it will be noted with satisfaction that it is rapidly building up its tangible assets."

In that same year, the company generated $32.3 million in sales, with $4.6 million flowing through to pre-tax income. Of that amount, $2.2 million was taken as a write-down due to a decline in the market value of certain inventory items (sugar, etc), $1.7 million was paid as dividends ($1M to common, $700K to preferred), and $435K was paid in taxes; for the year, $303,000 was added to the surplus (retained earnings) line on the balance sheet.

Even at this early point in time, the company was looking to expand its footprint: "Nineteen twenty-two should mark the beginning of a steady march forward in this business. Aside from two much needed main plants, relocating present inadequate plants, the building of which has been approved by your Board, we are properly and adequately equipped and manned to handle the business in the United States and Western Canada. Your Board is carefully considering and shaping its foreign policy, and, as conditions appear to warrant, the business will expand by first fully occupying those fields closest home. We should be able to carry out this program of expansion with net earnings after reasonable taxes and dividends. Our Sales Department is being deluged with applications to handle Coca-Cola throughout the world."

As! noted by! management at the time of writing (1922), the company had only seen two years of sales declines since the product was brought to market 36 years prior (one of those years was in 1918, when a 50% restriction in sugar use by the U.S. Food Administrator took its toll on the largest consumer of sugar in the world); the company's forward-looking strategy of global domination all but guaranteed that the lopsided recorded of success would continue.

BUILDING A BRAND

Building the brand meant creating a uniform product across all markets, which was reinforced by pricing strategy; as noted in the 1922 annual report, "The cost of manufacture has been reduced to such an extent that our prices to dealers, together with reduced costs to them of doing business, justifies and enables them to retail Coca-Cola at five cents per glass or bottle, as the case may be, which will have a very stimulating effect upon demand."

As our readers will see, this pricing point on the six-and-a-half ounce serving (particularly the trademark green bottle) would become an area of stubbornness for the company, and cause them considerable pain decades down the road as competitors (management called them "the imitator") looked to compete as an alternative for the value-conscious consumer ("Twice as much fun for a nickel, too").

Charlie notes in his speech that the brand (rather than some generic name/product) would be key to the company's ability to profitability expand for decades to come; in the early 1920's, the company won an important case that set the stage for perpetual defense of their trademark rights: "An important case has been decided by the Circuit Court of Appeals for the Third Circuit, that court holding that Taka-Kola was an infringement of Coca-Cola. This case is of importance because it rather defines some of the trade rights of the Company."

The most revealing part of these reports is the CONTINUED focus on the importance of goodwill and reinvestment in all things ! Coca-Cola! to the company's long-term success; in the words of the 1924 annual report, "A corporation which does not lay a firm foundation for the future cannot build goodwill of lasting nature—truth is the basis of all stable good-will."

Part of this brand development came in the form of advertising, which "blazed the way for the entire soft drink industry" according to management; at the time, the company had even gone into the glass business, selling 3.4 million glasses to ensure that consumers received a "real Coca-Cola" no matter where they were. In addition, the company had more than 20,000 painted walls and bulletins in the U.S., 2.5 million calendars, and newspaper and magazine advertisements in "millions of copies" around the country.

EXPANDING THE FOOTPRINT

Even at that time, the distribution of the Coca-Cola company was expanding at a rapid pace: "Syrup is sold to more than 1200 Coca-Cola bottlers in the United States, and to bottlers in Canada, Cuba, Hawaii, Philippines, and even in the little island of Guam. Bottlers in the United States in turn merchandise the bottled drink through more than 200,000 retailers. For fountain use the syrup is sold through more than 2300 jobbers, who in turn supply 115,000 soda fountains in the United States. Coca-Cola is also sold in Porto Rico, Panama, Mexico, Australia, New Zealand, England, France and in the Orient."

In 1924, the company's current ratio stood at more than 12:1 ($5.6 million compared to $450K) and long term liabilities were practically nonexistent, despite considerable investments in advertisement and sales force expansion in the United States ("One of the outstanding accomplishments in the operation of this company during the past year has been the building of a sales force commensurate with the advertising force previously established, with due regard to the need of systematizing and coordinating our sales and advertising efforts"). While the company's gallons of syrup sold had stagnated i! n the pas! t five years, the longer term record showed the explosive growth that had been attained up until 1924:

YEAR	GALLONS SOLD
1886	25
1890	8,885
1895	76,244
1900	370,877
1905	1,549,866
1910	4,190,149
1915	7,521,833
1920	18,656,445
1924	17,496,764

Top 10 Financial Companies To Invest In 2014

On this day in economic and business history...

General Motors (NYSE: GM  ) filed for bankruptcy on Jun. 1, 2009. For decades, GM had been the world's largest automaker, but it had been brought low by staggering losses related to the 2008 financial crisis. The year 2009 was a terrible struggle for the automaker. Its CEO had been ousted via pressure from the President of the United States, and it had received billions in federal loans to avoid complete collapse. None of these efforts could turn GM around quickly enough, and over a century of automotive history fell apart at a bankruptcy court in Manhattan.

The bailout reshaped GM as a smaller company, its assets largely government-owned, with the United Auto Workers Union's pension arm gaining control of approximately 20% of the company. GM would also shutter 14 plants after its bankruptcy, and would shed as many as 21,000 jobs, which was only in addition to the plants already closed, and the thousands of jobs already lost. GM's American workforce would shrink to less than a tenth the size of its postwar peak, when the company employed up to 400,000 people. GM's bankruptcy was (and remains) the fourth-largest of all time, behind Lehman Brothers, Washington Mutual, and WorldCom. The bankruptcy also ended GM's 84-year tenure as a component of the Dow Jones Industrial Average (DJINDICES: ^DJI  ) -- the Dow replaced GM eight days later�and, for the first time in decades, America's largest industrial employer was no longer a part of its most-watched stock market index.

Top 10 Financial Companies To Invest In 2014: Eaton Vance Corporation (EV)

Eaton Vance Corp., through its subsidiaries, engages in the creation, marketing, and management of investment funds in the United States. It also provides investment management and counseling services to institutions and individuals. Further, the company operates as an adviser and distributor of investment companies and separate accounts. As of October 31, 2004, the company provided investment advisory or administration services to approximately 150 funds; approximately 1,300 separately managed individual and institutional accounts; and participated in approximately 40 retail-managed account broker/dealer programs. It markets and distributes shares of funds through a retail network of national and regional broker/dealers, banks, insurance companies, and financial planning firms. Eaton Vance Corp. was founded in 1944 and is headquartered in Boston, Massachusetts.

Top 10 Financial Companies To Invest In 2014: First Bancorp Inc(ME)

The First Bancorp, Inc. operates as a holding company for The First, N.A., which is a chartered national bank that provides various banking services to individual and corporate customers in coastal Maine. The company offers various deposit products, including demand, savings, NOW, money market, and certificate of deposit accounts. It also provides various loan products, such as commercial real estate, commercial construction, and other commercial loans; municipal loans; residential term and construction loans; home equity lines of credit; and consumer loans. In addition, the company offers private banking, financial planning, investment management, and trust services to individuals, businesses, non-profit organizations, and municipalities. It operates a network of 14 full-service banking offices in Lincoln, Knox, Hancock, and Washington Counties located in the mid-coast and down east regions of Maine. The company was formerly known as First National Lincoln Corporation and changed its name to The First Bancorp, Inc. in April 2008. The company was founded in 1864 and is based in Damariscotta, Maine.

Hot Bank Companies To Invest In 2014: Investors Bancorp Inc.(ISBC)

Investors Bancorp, Inc. operates as the holding company for Investors Savings Bank that provides a range of banking services in the United States. The company accepts deposits and originates loans. Its deposit products include savings accounts, checking accounts, money market accounts, and certificates of deposit. The company offers commercial real estate, construction, multi-family, and commercial and industrial loans; and consumer loans, including home equity loans and home equity lines of credit, as well as mortgage loans secured by one-to four-family residential real estate. As of December 31, 2010, it operated 82 full-service branch offices located in Essex, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Union, and Warren Counties, New Jersey; Nassau and Queens, New York; and Massachusetts. The company was founded in 1926 and is headquartered in Short Hills, New Jersey. Investors Bancorp, Inc. is a subsidiary of Investors Bancorp, MHC.

Top 10 Financial Companies To Invest In 2014: Aegon Nv(AGN.L)

AEGON N.V. provides life insurance, pension, and asset management products and services primarily in the Americas, Europe, and Asia. The company offers a range of life and protection products, including traditional, universal, endowment, term, employer, and whole life insurance products; and accidental death and dismemberment, critical illness, cancer treatment, disability, income protection, and long term care insurance. It also offers individual savings and retirement products, including fixed and variable annuity products, retail mutual funds, and mortgages; employer solutions and pensions comprising individual and group pensions, as well as 401(k) plans and similar products sponsored by or obtained through an employer; and general insurance products, including automotive, liability, fire protection, and household insurance. AEGON N.V. markets its products directly, as well as through various sales and distribution channels, including independent and career agents, fina ncial planners, registered representatives, independent marketing organizations, banks, broker-dealers, benefit consulting firms, wirehouses, affinity groups, institutional partners, independent managing general agencies, specialized financial advisors, and the Internet. The company was founded in 1900 and is headquartered in The Hague, the Netherlands.

Top 10 Financial Companies To Invest In 2014: Liberte Investors Inc. (FAC)

First Acceptance Corporation, through its subsidiaries, engages in retailing, servicing, and underwriting non-standard personal automobile insurance and related products. Its primary business involves issuing automobile insurance policies to individuals who are categorized as non-standard based primarily on their inability or unwillingness to obtain insurance coverage from standard carriers due to various factors, including their payment history or need for monthly payment plans, and failure to maintain continuous insurance coverage or driving record. The company also offers optional products that provide ancillary reimbursements and benefits in the event of an automobile accident; and underwrites a tenant homeowner policy that provides contents and liability coverage to renters. In addition, it engages in activities related to the disposition of real estate held for sale. The company distributes its products through retail locations. As of March 31, 2012, it leased and op erated 378 retail locations. First Acceptance Corporation was founded in 1969 and is based in Nashville, Tennessee.

Top 10 Financial Companies To Invest In 2014: United Fire & Casualty Company(UFCS)

United Fire Group, Inc. engages in the writing of property, casualty, and life insurances. It sells annuities through a network of independent agencies. The company?s property and casualty insurance segment comprises commercial lines insurance products, including surety bonds, personal lines insurance, and assumed insurance. Its life insurance segment consists of deferred and immediate annuities, universal life insurance products, and traditional life insurance products. The company was founded in 1946 and is headquartered in Cedar Rapids, Iowa.

Top 10 Financial Companies To Invest In 2014: National Health Investors Inc. (NHI)

National Health Investors, Inc., a real estate investment trust (REIT), invests in health care properties, primarily in the long-term care industry in the United States. As of December 31, 2008, it had investments in real estate assets and mortgage notes receivable investments in 123 health care facilities consisting of 83 long-term care facilities, 1 acute care hospital, 4 medical office buildings, 14 assisted living facilities, 4 retirement centers, and 17 residential projects for the developmentally disabled in 17 states. The company has elected to be treated as a REIT for federal income tax purposes and would not be subject to federal income tax, if it distributes at least 90% of its REIT taxable income to its shareholders. National Health Investors, Inc. was founded in 1991 and is based in Murfreesboro, Tennessee.

Top 10 Financial Companies To Invest In 2014: Redwood Trust Inc.(RWT)

Redwood Trust, Inc., a real estate investment trust, together with its subsidiaries, engages in investing, financing, and managing real estate assets. The company?s investments include residential and commercial real estate loans; and securities backed by residential and commercial loans, including senior and subordinate securities. The senior securities are those interests in a securitization that have the first right to cash flows and are last to absorb losses; and subordinate securities are those interests in a securitization that have the last right to cash flows and are first in line to absorb losses. As of March 31, 2011, it had 77 real estate owned properties primarily in Arizona, California, Colorado, Florida, and Georgia. It would elect to be taxed as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, the company would not be subject to federal income tax, if it distributes at least 90% of net taxable income to its stockholders. Red wood Trust, Inc. was founded in 1994 and is based in Mill Valley, California.

Top 10 Financial Companies To Invest In 2014: SYMPHONY INTERNATIONAL HLDGS LTD ORD NPV(SIHL.L)

Symphony International Holdings Limited is a private equity and venture capital firm focused on strategic long-term direct investment opportunities in the Asia Pacific region. The firm typically invests in private equity-type deals such as management buy-outs/buy-ins, restructurings, and the provision of later-stage development and expansion capital. It primarily invests in innovative and high-growth consumer businesses primarily in the healthcare, hospitality, and lifestyle sectors. The firm seeks to invest in the entire Asia Pacific region with special focus on India, China, Australia, Indonesia, Malaysia, Singapore, Taiwan, Thailand and the emerging markets of Vietnam, and Sri Lanka. It seeks to be the lead or sole investor. Symphony International Holdings Limited is based in Singapore with additional offices in Central, Hong Kong and Road Town, British Virgin Islands.

Top 10 Financial Companies To Invest In 2014: Virtus Investment Partners Inc.(VRTS)

Virtus Investment Partners, Inc. provides investment management products and services to individuals and institutions in the United States. The company operates a multi-manager asset management business, comprising various individual affiliated managers, each with its own investment style, autonomous investment process, and individual brand. It supplements the investment capabilities of its affiliated managers partnering with select unaffiliated sub-advisors whose strategies are not available to retail mutual fund customers. The company is headquartered in Hartford, Connecticut.

Gel-Squeezing Cyclists in Lycra Fuel Science in Sport IPO

Science in Sport Ltd. broke away from its parent company, Provexis Plc (PXS), and began trading today after an initial public offering as the maker of nutritional sports gels rides a surge in Britain's Lycra-clad cyclists.

Provexis, a maker of nutritional additives, spun off the company so SiS could focus on expanding the market for Go brand gels, powders and bars. SiS rose 8 percent to 60.5 pence in London, giving the Windsor, England-based company a market value of about 11.7 million pounds ($18.1 million).

More Britons have taken up cycling than any other sport, according to Mintel International, the market research firm where the term Mamil -- middle-aged man in Lycra -- was coined in 2010. SiS Chief Executive Officer Stephen Moon, a former GlaxoSmithKline Plc (GSK) manager, became a Mamil himself to better understand his customers when he joined the company. He owns two carbon-fiber road bikes, a Legend Giau and a Legend HT9.5.

"What do they say now, 'Cycling is the new golf'? I don't care what the phrase is, it's working for us," Moon said in an interview yesterday. "We're in a market that keeps growing."

Cenkos Securities Plc (CNKS) is running the spinoff and the share sale. Royal DSM NV (DSM), the world's largest maker of vitamins, holds about 9 percent of SiS, while U.K. venture-capital trust Downing LLP owns 16.7 percent, Moon said. Provexis stockholders received one share of Science in Sport for every 100 shares of Provexis.

Andy Murray

Science in Sport was created by cycling enthusiast Tim Lawson in a kitchen in 1992 and was bought by Provexis two years ago. About 60 percent of sales come from cyclists, though the brand has been raising its profile among other athletes with help from the London Olympics last year and from Wimbledon champion and Go gel user Andy Murray. SiS has also widened its appeal to soccer fans, supplying products to Manchester United Plc (MANU) players, Moon said.

Provexis halved its underlying ope! rating loss for the year ending in March to 1.1 million pounds, helped by an 11 percent sales gain in Science in Sport products to 5.5 million pounds. The products include versions with caffeine, nitrates to increase stamina or choline to help the body derive energy from fat, the company said. SiS gels are sold online, at cycling shops and in grocery chains including Tesco Plc. (TSCO)

The U.K. is just the beginning. The company aims to expand in the U.S. market through online sales next year. The gels will appear in stores in cycling-friendly pockets of the U.S. such as northern California and Boulder, Colorado, by 2015. SiS is in talks with two companies for a potential joint venture in the Asia-Pacific region including Australia, Moon said.

Elite Equipment

A Mamil is a man between 35 and 45 with a family, who might opt for a high-end bike instead of a sports car as he hits middle age, according to Mintel. At an amateur cycling event recently, Moon said he struggled to spot a bike valued at less than 3,000 pounds.

"Everyone wants what the elites use," he said. That drove a decision in February to sign six-time British Olympic Gold Medal track cyclist Chris Hoy as a brand spokesman. "Mamils know Chris Hoy, they look and see him using our products and that's huge for us."

Best Financial Stocks To Buy Right Now

Moon said he has dismissed several potential suitors "poking and prodding" for assets to buy. Instead, he wants to achieve a goal of 20 percent annual sales growth.

"We sat down with our investors and we said, let's get Science in Sport and push it hard and in three years, let's see where we are then," Moon said. "We haven't had a chance to really grow the business yet."

Chrysler Revs Up Hiring at 2 Michigan Engine Plants

Paul Sancya/AP DETROIT -- Chrysler is investing $52 million at two Michigan plants to build more four-cylinder engines in anticipation of increased demand. The money is going into factories in Trenton and Dundee, Mich., south of Detroit. Almost 300 new jobs will be created at the Trenton North factory. The investment will help Chrysler build more Tigershark engines, which are currently used in the Dart compact car and likely to power new Chrysler cars in the future.

Chrysler said in a statement Wednesday that it will spend $40.5 million at the Dundee factory to convert an assembly line to make cranks, heads and engine blocks for the 2-Liter, four-cylinder Tigershark engine. In addition, Chrysler will spend $11.5 million on a new Tigershark assembly line at the Trenton North plant and add 298 new jobs. The added production is expected to be ready at both plants by the end of the third quarter. Chrysler has sold just over a million vehicles so far this year, up 9 percent. After hitting a 2009 low of 931,000, the company's sales grew to 1.6 million last year. The company has sold more than 51,000 Darts so far this year. The car made its debut in the summer of 2012. The company is expected to put the Tigershark engine in additional cars as it rolls out new products.

By Michael Zak | AOL Autos

A recent Interest.com study looked at the 25 largest metropolitan areas in the United States to see which median-income households in those respective areas can afford to purchase a new car, the average price of which was $30,550 in 2012, according to TrueCar. The study found that in only one city can residents actually afford a car with this sticker price -- Washington, D.C. Households with an average income in Washington, D.C. can afford a payment of up to $628, which would allow for purchase of a $31,940 vehicle. The next closest city, San Francisco, can only afford $537 per month, equating to a $26,786. While it's not news that Americans like to buy things that they can't afford, the data is a little surprising given how many great cars there are out there for well under $30,000. Solid hybrids, CUVs, sedans and sports cars can all be had for less than this.

How Home Depot Keeps Building Its Business

Tomorrow, Home Depot (NYSE: HD  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever surprises inevitably arise. That way, you'll be less likely to have an uninformed, knee-jerk reaction that turns out to be exactly the wrong move.

Home Depot joined the Dow Jones Industrials (DJINDICES: ^DJI  ) in 1999 following a huge rise during the bull market of the 1990s, yet even through the housing boom its stock largely languished. But the company's efforts to improve efficiency eventually paid off during its recent run to all-time record highs. Let's take an early look at what's been happening with Home Depot over the past quarter and what we're likely to see in its quarterly report.

Stats on Home Depot

Analyst EPS Estimate	$0.77
Change From Year-Ago EPS	18.5%
Revenue Estimate	$18.69 billion
Change From Year-Ago Revenue	5%
Earnings Beats in Past 4 Quarters	3

Source: Yahoo! Finance.

Will investors' optimism pan out for Home Depot this quarter?
Analysts have only grown more optimistic about Home Depot's earnings prospects in recent months, boosting their estimates on the just-ended quarter by a penny per share and adding $0.06 to their full-year fiscal 2013 calls. The stock has moved explosively higher, soaring almost 15% just since mid-February.

Home Depot has definitely set a high bar for this quarter with its past performance. In February, the company announced a 14% gain in revenue and a comparable-store sales gains of 7% in its fourth-quarter results, leading the retailer to boost its dividend by 34% and authorize a $17 billion share buyback. In giving guidance, though, it saw full-year results this year slowing to growth of 3% in same-store sales.

But some investors are concerned that Home Depot's stock has gotten ahead of itself. Essentially, Home Depot's share price anticipated the housing recovery, so it's now up to housing to deliver on the future that shareholders are already taking for granted. Meanwhile, smaller companies in the space have a lot more growth potential, arguably making them more attractive. For instance, last month Lumber Liquidators (NYSE: LL  ) reported strong results, with same-store sales rising more than 15% and earnings crushing guidance. Home Depot can't produce anything close to the sales growth rates that will push Lumber Liquidators and its similarly sized peers upward if housing continues to rebound.

One interesting strategic move that came up during the quarter was the possibility that former Home Depot division HD Supply will go public. Home Depot sold the wholesale construction-materials business to private-equity firms six years ago, but Home Depot still retains a 12.5% stake in the venture. Fellow retailer Sears Holdings (NASDAQ: SHLD  ) has had mixed success with similar derivative spinoffs: Orchard Supply has plunged, but Sears Hometown and Outlet Stores has seen its shares rise sharply since its IPO late last year. But the timing for HD Supply couldn't be better, and an IPO could produce a nice windfall for Home Depot.

In Home Depot's quarterly report, watch for signs from the retailer that it's working on getting its average revenue per transaction up. Rival Lowe's (NYSE: LOW  ) has managed to keep its average customer ticket almost 15% higher than Home Depot's, so if Home Depot can find a way to match Lowe's figures, it could hold the key to accelerating growth for its future.

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Are You Expecting This from ViaSat?

ViaSat (Nasdaq: VSAT  ) is expected to report Q4 earnings on May 16. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict ViaSat's revenues will expand 18.6% and EPS will turn positive

The average estimate for revenue is $285.3 million. On the bottom line, the average EPS estimate is $0.02.

Revenue details
Last quarter, ViaSat reported revenue of $286.4 million. GAAP reported sales were 40% higher than the prior-year quarter's $205.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.04. GAAP EPS were -$0.47 for Q3 against $0.12 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 26.2%, 220 basis points worse than the prior-year quarter. Operating margin was 0.4%, 50 basis points worse than the prior-year quarter. Net margin was -7.3%, 980 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.10 billion. The average EPS estimate is -$0.21.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 91 members out of 101 rating the stock outperform, and 10 members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give ViaSat a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ViaSat is outperform, with an average price target of $43.64.

Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does ViaSat fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Add ViaSat to My Watchlist.