Category Archives: Hot Stocks

Best Company To Invest In 2013

Now, I know that lots of my readers are already yelling at their computer screens — “Buy and hold is dead!” goes the cry, and that has certainly been increasingly the sentiment of the market over the last few years … especially since, in so many stocks, “buy and hold” has meant “buy and watch them go down over time.”

Any inflexible strategy is bound to have problems and down years … heck, even the flexible ones have down years … but still, there’s a certain part of me that loves “buy and hold.” Missing the worst days and the worst crashes in the market is great if your stop losses get you out before the bottom hits, but not missing the best days has historically been more important, if only because those who sell as their stocks go down are generally terrible at buying back in before the stock or market has fully rebounded or recovered (no not you — I mean everyone else).

In a world where I have no confidence in the overall direction of the market, I can at least have some confidence in big businesses with stable earnings, growing revenues, and growing dividends. Maybe we can’t hold them forever, but most of my best picks over the long haul have been stocks that I’ve held through up and down markets (and watched the dividends compound dramatically, in some cases) … and my biggest mistakes have mostly been selling stocks that, after I sold them, beat the market handily. That said, I also have held on to my share of stinkers for far too long, so maybe this is just a psychological flaw for your friendly neighborhood Gumshoe.

Best Company To Invest In 2013: Fresh Del Monte Produce Inc.(FDP)

Fresh Del Monte Produce Inc., through its subsidiaries, produces, transports, sources, markets, and distributes fresh and fresh-cut fruit and vegetables worldwide. It also offers prepared fruit and vegetables, juices, beverages, snacks, and poultry and meat products. The company provides various fresh-cut fruit products, such as bananas, pineapples, melons, tomatoes, grapes, apples, pears, peaches, plums, nectarines, cherries, citrus, avocados, blueberries, kiwi, strawberries, plantains, mangos, and fruit cocktail; and fresh-cut vegetable products primarily consisting of potatoes, onions, bell peppers, and cucumbers, as well as prepared salads, such as coleslaw and potato salad. In addition, Fresh Del Monte Produce engages in ocean freight; and manufacture of plastics and box products comprising bins, trays, bags, and boxes. It offers fresh produce under the DEL MONTE, UTC, and Rosy brands; and prepared fruits and vegetables, juices, beverages, and snacks under the DEL MON TE, Fruit Express, Just Juice, and Fruitini brands. The company markets and distributes its products to retail stores, food clubs, wholesalers, distributors, and foodservice operators. Fresh Del Monte Produce Inc. was founded in 1886 and is based in George Town, Cayman Islands.

Advisors’ Opinion:

  • [By Zacks]Fresh Del Monte Produce Inc. (FDP) announced an earnings per share surprise of 110% for its first quarter, fueled by product line restructuring and tighter cost controls. Adjusted earnings per share of 84 cents jumped from the prior year’s 28 cents and eclipsed the consensus of 40 cents. Net sales decline slightly due to aggressive efforts to improve the North American performance of its “Other Fresh Produce” business segment.

    Shares of the fruit and vegetable company gained approximately 16.5% last week as 52-week highs were reached on Apr 30 and May 1. Earnings estimates for this year have moved forward in the past seven days to $1.06. Fresh Del Monte Produce is encouraged by its best quarter in two years, and believes it is seeing the beginning of a turnaround that will leave it well-positioned for long-term growth.

Best Company To Invest In 2013: Huron Consulting Group Inc.(HURN)

Huron Consulting Group Inc. provides operational and financial consulting services in the United States. Its Health and Education Consulting segment develops and implements solutions to help clients address financial management, strategy, operational and organizational effectiveness, research administration, and regulatory compliance; and offers consulting services related to organization performance improvement, revenue cycle improvement, turnarounds, merger or affiliation strategies, labor productivity, non-labor cost management, information technology, patient flow improvement, physician practice management, interim management, clinical quality and medical management, and governance and board development to hospitals, health systems, physicians, managed care organizations, academic medical centers, colleges, universities, and pharmaceutical and medical device manufacturers. The company?s Legal Consulting segment provides strategic and management consulting, cost managem ent, and technology and information management, including matter management, records, document review, and discovery services to assist law departments and law firms. This segment also offers V3locity solution, which delivers streamlined e-discovery process; and IMPACT solution that delivers sustainable cost reductions. Its Financial Consulting segment assists corporations with accounting and financial reporting matters, and provides financial analysis in restructuring and turnaround situations, as well as consults with companies in the areas of corporate governance, Sarbanes Oxley compliance, and internal audit. Huron Consulting Group Inc. serves various industries, including healthcare, education, professional services, pharmaceutical, technology, transportation services, telecommunications, financial services, electronics, consumer products, governmental, energy and utilities, and industrial manufacturing. The company was founded in 2002 and is headquartered in Chicago, I llinois.

Advisors’ Opinion:

  • [By Zacks]Huron Consulting Group Inc. (HURN) is a leading provider of financial and operational consulting services that gained 15.4% last week. The company reported first-quarter earnings per share of 55 cents on revenues of $116 million. Earnings bettered the consensus by approximately 7.8% and surged from the previous year, while revenues soared 87% from the first quarter of 2006’s $62.2 million. Huron Consulting Group reached a 52-week high on May 3 while earnings estimates for this year improved 1.3% in the past seven days. The company continues to experience increased demand across its service offerings, and is optimistic that it will continue for the remainder of 2007. Huron Consulting Group believes it is well-positioned for this year and beyond, as evidenced by the decision to boost its full year outlook.

Best Company To Invest In 2013: Cooper Tire & Rubber Company(CTB)

Cooper Tire & Rubber Company, together with its subsidiaries, manufactures and markets replacement tires in North America and internationally. It operates in two segments, North American Tire Operations and International Tire Operations. The North American Tire Operations segment produces and distributes passenger car and light truck tires, as well as tires for racing, medium trucks, and motorcycles to independent tire dealers, wholesale distributors, regional and national retail tire chains, and other large automotive product retail chains. This segment sells its products through three own retail stores. The International Tire Operations segment manufactures and markets passenger car, light truck, motorcycle, light vehicle tires, radial and bias medium truck tires, and racing tires and tire retread material to markets worldwide. The company was founded in 1913 and is based in Findlay, Ohio.

Advisors’ Opinion:

  • [By Zacks]Cooper Tire & Rubber Company (CTB) reversed a year-ago loss with first-quarter earnings of 33 cents. The result also bettered the consensus by as much as 312%. Total sales moved forward 16% to $689 million, versus $597 million in the first quarter of 2006. Cooper Tire & Rubber said it continued to benefit from the cost reduction and profit improvement initiatives announced last September. Furthermore, it was helped by improved price and mix in North America, and increased tire unit sales in Europe and Asia.

    Shares of the company gained 12% last week, making it one of the top-performing Zacks #1 Rank companies. It also reached a 52-week high on the day of its report. Looking forward, Cooper Tire & Rubber expects to build on the momentum of the first quarter, as conditions and opportunities suggest a strong 2007. Over the past seven days, earnings estimates for this year have moved forward approximately 25% to 98 cents.

Best Company To Invest In 2013: Life Partners Holdings Inc(LPHI)

Life Partners Holdings, Inc., through its subsidiary, Life Partners, Inc., operates in the secondary market for life insurance in the United States. It facilitates life settlement transactions by identifying, examining, and purchasing the policies as agent for the purchasers. The company?s financial transactions involve the purchase of life insurance policies at a discount to their face value for investment purposes. It serves institutional purchasers, which include investment funds designed to acquire and hold life settlements; and retail purchasers, such as high net worth individuals. The company was founded in 1971 and is based in Waco, Texas.

Advisors’ Opinion:

  • [By Zacks]Life Partners Holdings, Inc. (LPHI) is engaged in the secondary market for life insurance. The company gained almost 27.5% last week to become the top-performing Zacks #1 Rank company. It was also a top performer in the week ended Apr 20. Over the past month, earnings estimates for the year ending February 2008 are up approximately 22.7%.

    Life Partners Holdings began this month by reached 52-week highs each day from May 2 through May 4. Last month, the company announced that it expects net income to surge 215% for fiscal 2007. This is attributed to an exceptional increase in net income beginning in the third quarter and continuing into the fourth quarter. For its fiscal fourth-quarter, earnings per share are expected at 22 cents, which would mark significant advances from both the year-ago performance and Wall Street expectations. The company plans to officially report its earnings later this month.

Buffet Stocks For 2013

A few days ago I read a few articles that started off by saying, “J.P. Morgan names Facebook, eBay, Priceline and Pandora as its top picks among Internet stocks for 2013.”  That was followed by a link to read more.

I was initially a little perplexed – so much so that I clicked on the link so that I could understand J.P. Morgan’s rationale for selecting these as top picks.

Buffet Stocks For 2013: Northern Oil and Gas Inc.(NOG)

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the Williston Basin Bakken play, the United States. As of June 30, 2011, the company?s principal assets included approximately 158,046 net acres located in the northern region of the United States; and 439 gross wells. Northern Oil and Gas, Inc. is based in Wayzata, Minnesota.

Advisors’ Opinion:

  • [By Conrad]Northern Oil and Gas, Inc. Com (AMEX:NOG): This equity had 22,650,533 shares sold short as of Aug 31st, as compared to 23,479,470 on Aug 15th, which represents a change of -828,937 shares, or -3.5%. Days to cover for this company is 21 and average daily trading volume is 1,081,891. About the equity: Northern Oil and Gas, Inc. is an oil and gas exploration and production company. The Company is currently focused on the Rocky Mountain regions of the United States.

Buffet Stocks For 2013: Becton Dickinson and Company(BDX)

Becton, Dickinson and Company, a medical technology company, develops, manufactures, and sells medical devices, instrument systems, and reagents worldwide. The company?s BD Medical segment produces medical devices that are used in various healthcare settings. This segment?s products include needles, syringes, and intravenous catheters for medication delivery; prefilled IV flush syringes; syringes, pen needles, and other drugs to treat diabetes; prefillable drug delivery systems; anesthesia needles and trays; sharps disposal containers; and closed-system transfer devices. Its BD Diagnostics segment provides products for the safe collection and transport of diagnostics specimens, as well as instrument systems and reagents to detect various infectious diseases, healthcare-associated infections, and cancers. This segment?s products consist of integrated systems for specimen collection; safety-engineered blood collection products and systems; automated blood culturing systems; molecular testing systems; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; rapid diagnostic assays; and plated media. The company?s BD Biosciences segment produces research and clinical tools that facilitate the study of cells and their components. This segment?s products comprise fluorescence-activated cell sorters and analyzers; monoclonal antibodies and kits for performing cell analysis; reagent systems for life science research; cell imaging systems; laboratory products for tissue culture and fluid handling; diagnostic assays; and cell culture media supplements for biopharmaceutical manufacturing. It markets its products through independent distribution channels and independent sales representatives to healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry, and the general public. The company was founded in 1897 and is headquartered in Franklin Lakes, New Jersey.

Advisors’ Opinion:

  • [By Rahemtulla]A relatively new position for Warren Buffett, this company makes all sorts of medical supplies. Buffett has been making an across-the-board bet on medical companies. He owns Johnson & Johnson (JNJ), GlaxoSmithKline (GSK) Sanofi Aventis (SNY). And now the smallest company among the medical stocks he invests in is Becton Dickison. The company just recently increased its dividend, making it the 37th year in a row that it increased its payout. At 14 times earnings, this one has room to grow, particularly with an aging Baby Boomer population requiring more me dical care.

Buffet Stocks For 2013: Torch Energy Royalty Trust(TRU)

Torch Energy Royalty Trust, a grantor trust, holds net profits interests, to receive payments from the working interest owners. Its working interest owners include Torch Royalty Company, Torch E&P Company, Samson Lone Star Limited Partnership, and Constellation Energy Partners LLC. The trust is entitled to receive 95% of the net proceeds attributable to oil and natural gas produced and sold from wells on the underlying properties, including Chalkley Field in Louisiana; the Robinson?s Bend Field in the Black Warrior Basin in Alabama; Cotton Valley Fields in Texas; and Austin Chalk Fields in central Texas. Torch Energy Royalty Trust was founded in 1993 and is based in Wilmington, Delaware.

Buffet Stocks For 2013: La Doria(LDO.MI)

La Doria SpA engages in the production and marketing of food products in the vegetable and juices processing sector primarily in Italy, the United Kingdom, and the Scandinavian countries. Its products include tomato-based products, fruit juices, and canned vegetables and pasta. The company offers peeled, chopped, and cherry tomatoes; tomato puree; traditional and mixed fruit juices; pulses, such as beans, chick peas, and lentils; minestrones and soups; and carrots and legumes. It also markets canned tomatoes, fruits, fishes, shrimps, pet food, and other products. The company sells its products under the La Doria, LA ROMANELLA, VIVI G, and VIVI G BIO brand names. La Doria SpA was founded in 1954 and is headquartered in Angri, Italy.

Buffet Stocks For 2013: Computacenter(CCC.L)

Computacenter plc, through its subsidiaries, engages in the supply, implementation, support, and management of information technology (IT) systems in the United Kingdom, Germany, France, and Belgium. The company offers workplace systems, such as desktop, laptop, monitor, printers, peripherals, and consumables; datacenter and networking products comprising Intel and Unix servers, storage, networking, and security products; and professional, support, managed, and third party resold services. It also offers service desk solutions; SAP and Oracle infrastructure management services; device management, and C3 cloud-based IT services; network monitoring and management; datacenter hosting, and server and storage management; datacenter, network, and desktop maintenance; and installation, move, add, and change services. In addition, the company provides workplace strategy, desktop migration and virtualization, and software optimization services; structured cabling and intelligent in frastructure management systems services, IP Telephony and VoIP services, and application delivery and WAN optimization services; infrastructure virtualization, discovery and analysis, automation and orchestration services, as well as current state assessment, database optimization, server and storage consolidation, and datacenter relocation services; video and user collaboration, corporate e-mail and messaging, mobile workforce, and digital media and signage solutions; and network security, backup and recovery, data classification and optimization, replication, and secure remote access services, as well as archiving solutions. Further, it offers product fulfillment, supplier management and rationalization, and Web shop and e-commerce services; configuration and logistics, and release and deployment management services; recovery, disposal, and recycling services; and software licensing services. The company was founded in 1981 and is headquartered in Hatfield, the United Kin gdom.

Buffet Stocks For 2013: Imris Inc He Company] (IM.TO)

IMRIS Inc. provides integrated image guided therapy solutions that deliver information to clinicians during surgical or interventional procedures in Canada, the United States, Europe, the Asia Pacific, and the Middle East. The company designs, manufactures, and markets VISIUS Surgical Theatre, a multifunctional surgical environment that incorporates magnetic resonance (MR) imaging, CT imaging, fluoroscopy, computed tomography, and x-ray angiography into multi-purpose surgical suites to provide intra-operative imaging for medical applications. It also provides ancillary products and services. The companyÂ’s solutions serve the neurosurgical, cerebrovascular, and cardiovascular markets worldwide. IMRIS Inc. is based in Winnipeg, Canada.

Buffet Stocks For 2013: United Bancorp Inc.(UBCP)

United Bancorp, Inc. operates as the holding company for The Citizens Savings Bank that provides various commercial and retail banking products and services in the northeastern, eastern, southeastern, and south central Ohio. Its deposit products include interest-bearing deposits, certificates of deposit, demand deposits, savings accounts, NOW accounts, and money market deposits. The company?s loan portfolio comprises commercial, real estate, installment, and consumer loans, as well as letters of credit and lines of credit. It also offers brokerage, night deposit, safe deposit box, and automatic teller machine services. United Bancorp provides banking services through its main office and stand alone operations center in Martins Ferry, Ohio; and 19 branches in Belmont, Harrison, Jefferson, Tuscarawas, Carroll, Athens, Hocking, and Fairfield counties, as well as in the surrounding localities. The company was founded in 1974 and is headquartered in Martins Ferry, Ohio.

Best Cheap Stocks For 2013

New Year’s Eve is a great time to celebrate a nice recovery year for banks stocks, and to look ahead by identifying names that are trading at low multiples to forward earnings estimates.

If you were picking stocks a year ago, after the KBW Bank Index sank 25 percent, withBank of America dropping 58 percent during 2011 and Citigroup falling by 44 percent, there was a host of large-bank plays trading at significant discounts to book value. Bank of America’s stock was trading for just 0.4 times tangible book value at the end of 2011, while Citigroup traded for 0.5 times tangible book value.

Best Cheap Stocks For 2013: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors’ Opinion:

  • [By Jim Cramer]When this company talked about lofty EPS for 2015, initially the street was skeptical especially after IBM reported a blah quarter soon after the expectations were laid out. I now think the company has $20 earnings per share capabilities out three years and that $13 is doable for 2011. You keep the multiple the same and you get a $169 stock. I think it does just that. This one’s cheap, way too cheap and it will be cheap next year, too, but on a bigger earnings base which is how it can get to my price target.
  • [By Peter Hughes]International Business Machines (IBM) — our aggressive pick for the year — is one of the world’s most dominant technology companies, with annual revenues of $105 billion and net income of $16 billion.

Best Cheap Stocks For 2013: Bank of America Corporation(BAC)

Bank of America Corporation, a financial holding company, provides banking and nonbanking financial services and products to individuals, small- and middle-market businesses, large corporations, and governments in the United States and internationally. The company?s Deposits segment generates savings accounts, money market savings accounts, certificate of deposits, and checking accounts; and Global Card Services segment provides the U.S. consumer and business card, consumer lending, international card and debit card services. Its Home Loans & Insurance segment offers consumer real estate products and services, including mortgage loans, reverse mortgages, home equity lines of credit, and home equity loans. It also provides property, disability, and credit insurance. The company?s Global Commercial Banking segment offers lending products, including commercial loans and commitment facilities, real estate lending, leasing, trade finance, short-term credit, asset-based lending, and indirect consumer loans; and capital management and treasury solutions, such as treasury management, foreign exchange, and short-term investing options. Its Global Banking & Markets segment provides financial products, advisory services, settlement, and custody services; debt and equity underwriting and distribution, merger-related advisory services, and risk management products; and integrated working capital management and treasury solutions. The company?s Global Wealth & Investment Management segment offers investment and brokerage services, estate management, financial planning services, fiduciary management, credit and banking expertise, and asset management products. Bank of America Corporation serves customers through a network of approximately 5,900 banking centers and 18,000 automated teller machines. It was formerly known as NationsBank Corporation and changed its name on October 1, 1998. Bank of America Corporation was founded in 1874 and is based in Charlott e, North Carolina.

Advisors’ Opinion:

  • [By Dan Freed]JPMorgan rates Bank of America as an “Overweight,” citing passing of the Fed stress test as confirmation of adequate an capital base and “recent progress on mortgage related issues” and cost restructuring. In the near term, Bank of America should benefit from improved trends in trading, the report argues.

    The report added that BofA’s valuation remains “attractive” at 0.7x tangible book.

  • [By John Grgurich]To any investors following the financial sector in 2012, it will come perhaps as no surprise that B of A is the year’s top financials performer: moving from $5.81 per share to its year high of $11.61, for a whopping percentage gain of 100.17%. At the height of the financial crisis, in February 2009, B of A’s stock traded for as low as $3.95.
  • [By George Putn]In Q4 2010, Buffett sold the rest of his stake of five million shares at an average price of $12.24.

    In 2010, the company made a GAAP EPS of -$0.37, which is worse than 2009’s – $0.29. In 2008, that figure was $0.54. Revenues declined by 7.88% to $110.2 billion, after jumping by 64.39% in 2009. The EBT margin improved to 6.61% from 5.98%.

    For 2011, the Street expects non-GAAP EPS to be between $1.05 and $1.75. In 2010, non-GAAP EPS was $0.86. Q1 2011 results are released on April 15, and the Street estimates non-GAAP EPS would be between $0.15 and $0.44 with a consensus of $0.26. In comparison, Q1 2010 posted a non-GAAP EPS of $0.28. For Q1 2011, analysts estimate BAC will generate revenues of $26.0B, an increase of 30.84% over the prior year first quarter results. BAC shares trade with a price to sales multiple of 1.2. In its heyday not too long ago, that multiple was in the low 3’s. Investors are waiting to see if the worst is over for Bank of America. There is too much uncertainty swirling about in this mortgage mess due to regulatory uncertainty. However, BofA’s capital ratios have continued to increase as the company has shed noncore assets and riskier loans. If you are a long-term investor, buy BAC while it is at these depressed levels. Otherwise, don’t even touch this with a forty-nine-an d-a-half foot pole.

Best Cheap Stocks For 2013: S&P Smallcap 600(PH)

Parker Hannifin Corporation manufactures fluid power systems, electromechanical controls, and related components worldwide. Its Industrial segment offers pneumatic and electromechanical components, and systems; filters, systems, and instruments to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors that control, transmit, and contain fluid; hydraulic components and systems for builders and users of industrial and mobile machinery and equipment; critical flow components for process instrumentation, healthcare, and ultra-high-purity applications; and static and dynamic sealing devices. This segment sells its products to original equipment manufacturers (OEMs) and their replacement markets in the manufacturing, transportation, and processing industries. The company?s Aerospace segment provides flight control systems and components, including hydraulic, electrohydraulic, electric backup hydraulic, electrohydrostatic, and electro -mechanical components for precise control of aircraft rudders, elevators, ailerons, and other aerodynamic control surfaces. It also provides electronics thermal management heat rejection systems, and single-phase and two-phase heat collection systems for radar, ISAR, and power electronics. This segment markets its products primarily to OEMs in the commercial, military, and general aviation markets, as well as to end users. Its Climate and Industrial Controls segment offers systems and components primarily for use in the mobile and stationary refrigeration, and air conditioning industry; and in fluid control applications in various industries, such as processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment serves OEMs and their replacement markets. Parker-Hannifin Corporation markets its products through direct-sales employees, independent distributors, wholesalers, and sales representatives. The company was founded in 1918 and is headquartered i n Cleveland, Ohio.

Advisors’ Opinion:

  • [By Putnam]Parker Hannifin (PH) operates in a broadly diversified engineering industry with peers such as General Electric (GE) and 3M Company (MMM). Its products serve aerospace, commercial, mobile and industrial markets.

    The 2011 fiscal year was stellar for Parker. An all time record of $12.3 billion in sales was reached, a 23.5% increase. Net income increased a whopping 90%.

    The common stock currently trades at a price to earnings ratio of 10.5, below the industry average of 14.8 and historical average of 14. Price to book ratio is 2.02 with price to cash flow being 7.3.

    Making comparisons in a broadly diversified industry is difficult, since products and service offerings vary greatly between businesses. Therefore, the peer company’s business lines and products were used as the main selection criteria for peer analysis.

Best Cheap Stocks For 2013: SMTC Corporation(SMTX)

SMTC Corporation provides advanced electronics manufacturing services to original equipment manufacturers (OEMs) worldwide. The company?s services include product design and engineering services, printed circuit board assembly production, enclosure fabrication, systems integration, testing, and configuration services. It also provides enclosure and precision metal fabrication, cable assembly, interconnect, and engineering design services. The company offers its integrated contract manufacturing services to OEMs and technology companies primarily in the industrial, computing and networking, communications, consumer, and medical market segments. SMTC Corporation was founded in 1985 and is based in Markham, Canada.

Advisors’ Opinion:

  • [By Paul]SMTC Corp. (NASDAQ: SMTX) is a Canadian company that provides contract electronics manufacturing services, such as surface-mount and through-hole circuit board assembly, product design, testing, packaging and supply chain management. Manufacturers use products built or assembled by SMTC in their computer servers, networking devices or communications products.

    In its most recent earnings report, the company said Q3 sales rose 48% in the quarter to $65.4 million, and earnings per share were 16 cents, up from 3 cents in the same quarter of 2009. Eight of its top 10 customers increased orders as a result of strong market demand for electronics manufacturing. The addition of five new clients added $10 million to the company’s sales in the quarter. SMTX’s year-over-year gross profit more than doubled to $7.9 million, as a result. Generated cash flow reached $4.6 million and the company used much of this extra cash to pay down debt. That’s why SMTX’s debt was just $18 million at the end of the quarter, the lowest level in the company’s history.

    SMTX is in an excellent position to profit from increasing electronics and technology demand, which will continue to climb next year. Buy SMTX below $4.

Best Cheap Stocks For 2013: Sirius XM Radio Inc.(SIRI)

Sirius XM Radio Inc. provides satellite radio services in the United States and Canada. It broadcasts a programming lineup of approximately 135 channels of commercial-free music, sports, news and information, talk and entertainment, traffic, and weather on subscription fee basis through two satellite radio systems in the United States; and holds an interest in the satellite radio services offered in Canada. The company also simulcasts music and selected non-music channels over the Internet; and offers applications to allow consumers to access its Internet services on mobile devices. As of December 31, 2010, it had 20,190,964 subscribers. In addition, the company designs, establishes specifications, sources or specifies parts and components, and manages various aspects of the logistics and production of satellite radios; licenses its technology to various electronics manufacturers to develop, manufacture, and distribute radios under various brands; and imports radios distri buted through its Websites. The company?s satellite radios are primarily distributed through automakers, retailers, and its Websites. Further, it provides music services for commercial establishments; a satellite television service to offer music channels as part of certain programming packages on the DISH Network satellite television service; music and comedy channels to mobile phone users through mobile phone carriers; Backseat TV, a service offering television content designed primarily for children in the backseat of vehicles; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedules and scores, and movie listings; and real-time traffic and weather services. The company was formerly known as Sirius Satellite Radio Inc. and changed its name to Sirius XM Radio Inc. in August 2008. Sirius XM Radio Inc. was founded in 1990 and is headquartered in New York, New York.

Advisors’ Opinion:

  • [By Louis]Satellite radio broadcaster Sirius XM Radio Inc. (SIRI) is popular among penny stock investors. At $1.83, SIRI is up 67% in the last year, and 20% since mid-January. Investors should also note the company’s quarterly revenue growth of 9% from last quarter.
  • [By Tom Bishop]Sirius XM Radio Inc. (SIRI) Sirius has a market cap of $6.86 billion with a price-to- earnings ratio of 44.63. The stock has traded in a 52-week range of $1.10 to $2.44. The stock is currently trading around $1.80. On August 2nd, the company reported revenue of $744 million compared with revenue of $700 million in the second quarter of 2010. Second quarter net income was $173 million compared with net income of $15.3 million in the second quarter of 2010.

    One of Sirius XM’s competitors is Westwood One Inc. (WWON). Westwood One is currently trading around $4 with a market cap of $89.73 million and a negative price-to -earnings ratio.

    Sirius XM has been in an upward trend. In the second quarter, the company increased net income by 1,013% from the second quarter of 2010. In 2010, the company announced that it had increased its annual net income by $572.2 million, when it reported its first ever profit of $43.1 million. The company has completed building its infrastructure and should be able to reduce costs. The company recently reaffirmed its guidance of 10% revenue growth and free cash growth of 75%. Sirius XM has a lot of debt but should be able to pay down debt with the additional cash. Investors like what they see in Sirius and have bid up the stock price by 62% over the last 52 weeks. Additionally, we don’t see Pandora (P) as a serious threat. I rate Sirius XM Radio Inc. a buy.

  • [By Michael Brush]Howard Stern lemmings piled into Sirius stock years ago when the shock jock moved his circus to satellite radio. Many lost almost all their money, as the company’s stock fell under $1 from above $8.

    But with a 2008 buyout of XM Radio and a bankruptcy scare under its belt, Sirius XM Radio (SIRI) is now a dominant force on the comeback trail.

    Skeptics believe iPods and free Web radio services like Pandora will jam the signal at Sirius, which charges $12.95 a month. But satellite radio offers content that listeners can’t find elsewhere on the radio — not only Stern, but also Martha Stewart, Oprah Winfrey, Jamie Foxx, Barbara Walters and a Playboy channel, to name a few.

    And recent trends confirm that drivers are willing to pay for that content. Sirius XM Radio’s subscriber base grew last year by 8%, to 20.2 million. That helped drive revenue up 14%, to $2.82 billion. “It’s kind of like the original cable TV, when everyone thought people wouldn’t pay for TV because it’s free,” says Robert Routh, a media analyst at Phoenix Partners. “Sirius XM Radio has lot of stuff you can’t get elsewhere.” The reason: While terrestrial radio companies lack the funds to buy the big talent, Sirius XM Radio can buy wh atever it wants to fill its 135 channels, says John Tinker, an analyst with Maxim Group.

    Two other keys to growth: Sirius XM Radio is available for free for a few months in 60% of all new cars. As car sales rise in an improving economy, subscriber growth should increase. A Sirius 2.0 upgrade and a possible rate increase later this year will also drive gains. All-important cash flow could hit $1 billion a year by 2015, predicts Morgan Stanley analyst David Gober. He says Sirius XM Radio will be announcing dividends and share buybacks — music to investors’ ears

Best Cheap Stocks For 2013: Lionbridge Technologies Inc.(LIOX)

Lionbridge Technologies, Inc. provides language, development, and testing services. Its Global Language and Content segment provides product localization services, such as creating foreign language versions of its clients? products and software applications, including the user interface, online help systems, and documentation; and content translation services, such as translating and maintaining clients? Web-based content, eLearning courseware and training materials, technical support, and sales and marketing information. It also offers technical authoring, eLearning courseware development, and production and integration of content; and global language and content services delivery. The company?s Global Development and Testing segment develops and maintains on-premise, SaaS, and smart phone and tablet applications, as well as provides Web production services. This segment also offers various testing services under the VeriTest brand, including managed test teams, test proc ess design, test automation, functional testing, performance testing, globalization testing, and product certification. In addition, it provides specialized search relevance, online content editorial, keyword optimization, and related services. Its Interpretation segment offers interpretation services for government business and healthcare organizations that require experienced linguists to facilitate communication. It provides interpretation communication services, such as onsite interpretation, over-the-phone interpretation and interpreter testing, training, and assessment services in approximately 360 languages and dialects. The company serves the technology, mobile and telecommunications, Internet and media, life sciences, government, manufacturing, automotive, retail, and aerospace sectors in the Americas, Europe, and Asia. Lionbridge Technologies, Inc. was founded in 1996 and is headquartered in Waltham, Massachusetts.

Advisors’ Opinion:

  • [By Vodicka]Lionbridge Technologies (NASDAQ: LIOX) provides language, development and testing services to businesses all over the world. Its focus is on technology, and it helps its clients manage their enterprise content and technology applications, and supports those efforts with training materials, as well as sales and marketing information. By affecting optimal communication in local languages, it helps its clients capture market share, escalate adoption of their global content and products, increase the return on their enterprise application investments and boost workforce productivity. All while reducing costs! So it’s no wonder that the 10 largest software companies and the five largest Internet portals in the world use LIOX to help them internationalize their products and services.

    This strong customer base helped the company weather the recession, as its top 10 customers expanded their business by more than 8% in the fourth quarter over the third quarter. This helped the company generate $11.7 million in cash flow, improve its gross profit to 33.5% and revenues grow 7% quarter over quarter. That’s definitely a great sign, especially since technology spending is taking flight, and globalization of industry is in a rapid phase of expansion. Buy LIOX under $4.50.

Best Cheap Stocks For 2013: Lattice Semiconductor Corporation(LSCC)

Lattice Semiconductor Corporation designs, develops, manufactures, and markets programmable logic products and related software. The company offers field programmable gate array (FPGA) products, including LatticeECP family for deployment in wireless infrastructure and wireline access equipment, as well as in video and imaging applications; and LatticeXP for the security, surveillance, and display markets. It also provides programmable logic device (PLD) products comprising various versions of ispMACH4000 in-system programmable complex programmable logic device family; MachXO family that is designed for a range of low density applications; platform manager, power manager, and ispClock programmable mixed signal devices; and software development tools and intellectual property cores. The company sells its products directly to end customers through a network of independent manufacturers? representatives and indirectly through a network of independent sell-in and sell-through distributors. It primarily serves original equipment manufacturers in the communications, computing, consumer, industrial, military, automotive, and medical end markets. The company was founded in 1983 and is headquartered in Hillsboro, Oregon.

Advisors’ Opinion:

  • [By Nancy Zambell]A survivor of the tech boom and bust cycle, Lattice Semiconductor Corp. (NASDAQ: LSCC) has managed to consistently grow its new product revenue by 28% per quarter since 2006. And that astounding figure includes one of the worst recessions in our history, as well as a downturn in the semiconductor market. The company’s primary customers are original equipment manufacturers (OEMs) in the communications, computing, consumer, industrial, automotive, medical and military end markets. Its strongest markets include the fastest-growing segments in our economy today.

    LSCC intends to focus on aggressively expanding its mid-range markets, as well as its products for lower-power, lower-cost applications. It also plans to continue targeting customized solutions for its customers, all the while, continuing to increase its flow of new product growth and entry into new markets.

Best Cheap Stocks For 2013: Oracle Corporation(ORCL)

Oracle Corporation, an enterprise software company, develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. It licenses of database and middleware software, including database management software, application server software, service-oriented architecture and business process management software, data integration software, business intelligence software, identity and access management software, content management software, portals and user interaction software, development tools, and Java; and applications software comprising enterprise resource planning, customer relationship management, enterprise performance management, supply chain management, business intelligence applications, enterprise portfolio project management, Web commerce, and industry-specific applications software. The company also offers customers with rights to unspecified software product upgrades and maintenance releases; Internet access to technical content; and Internet and telephone access to technical support personnel. In addition, its hardware systems products consist of computer server and hardware-related software, including the Oracle Solaris Operating System; and storage products, such as tape, disk and networking solutions for open systems and mainframe server environments. Its hardware systems support solutions include software updates for the software components. Further, the company offers consulting solutions in business and IT strategy alignment, enterprise architecture planning and design, initial product implementation and integration, and ongoing product enhancements and upgrades; cloud services, including Oracle Cloud Services and Advanced Customer Services; and education solutions comprising instructor-led, media-based, and Internet-based training in the use of its software and hardware products. The company was founded in 1977 and is headquartered in Redwood Ci ty, California.

Advisors’ Opinion:

  • [By Goodwin]Oracle (ORCL), a software enterprise company, is the only Overweight-rated company in this market segment. With the introduction of a new Exadata product line, Oracle is set to enjoy a positive secular trend. Its current market price of $29.58 has fluctuated in the range of $24.72 to $36.50. Earnings per share of $1.76 have been posted and market capitalization stands at $149.47 billion. Its recent P/E ratio was 16.88x and the company showed a net profit margin of 23.99%.