Category Archives: VGR

The Venaxis Spring is Coiled (APPY)

I know on the surface that Venaxis Inc. (NASDAQ:APPY) hasn’t exactly been the most riveting of stocks lately. Heck, APPY shares are exactly where they were at the end of July, and volume has been even less than minimal. I’m telling you though, there’s just something about this stock – and its chart – that tells me an explosive bullish move is brewing.

Just as a preface to a chat about APPY, think about a spring that’s coiled. There’s potential for a violent “boing”, but as long as whatever’s keeping the spring is coiled, then that potential de-coiling is irrelevant. If for some reason the spring’s shackles are undone, the look out – BOING! Yeah, well, just think of Venaxis Inc. as a coiled spring. It’s not doing anything right now, but it could very easily make an explosive bullish move with just one small (and easy to achieve) catalyst.

The Venaxis spring has been coiled by a rising support line and a falling support line. The rising support line is the 50-day moving average line (purple), while the falling support line is the 100-day moving average line (gray). Those two moving averages are on a collision course though, and clearly APPY can’t drift sideways between the two when there’s no space to waffle in between then.

But how do we know APPY is apt to make a bullish break rather than a bearish one? Truth be told, we don’t; there are never any guarantees in trading. But, there are some clues in place that suggest the undertow is bullish.The biggest clue in favor of bullishness from Venaxis Inc. is the fact that the stock’s actual still in a broad (even of wobbly) uptrend since June’s lows. The way shares have been gyrating around the $1.46 mark is also a biggie. That line was resistance in June and July, and though it’s not exactly become a support line yet, clearly the buyers are having no problem holding the stock above that former technical ceiling.

As for the timing, we’re apt to see the spring uncoil sooner than later. Though just gyrating around the $1.46 mark, we can also see the string of higher lows and lower highs has pretty much taken APPY to the pointy tip of a wedge shape [aided by the two key moving average lines]. The contraction is squeezing the chart tighter and tighter, but there’s no room left… the pressure building.

The proverbial green light is a close above the 100-day moving average line, currently at $1.48. Not only will a move above the 100-day line crack what’s been a tough ceiling, it will also rock Venaxis Inc. shares out of the converging wedge pattern.

The trick is exercising patience until that one last step is taken.

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Oppenheimer Reiterates “Buy”, Raises PT On Eaton Corp (ETN)

Oppenheimer reported on Tuesday that it is maintaining an “Outperform” rating on the Ohio-based power management company Eaton Corp (ETN), but went on to raise its price target for the stock.

After meeting with Eaton’s management team, analyst Christopher Glynn reported some encouraging prospects for the company. Glynn noted that, “Near-term capital allocation priorities remain reducing debt incurred from the Cooper deal, with no significant acquisitions expected until integration is complete (~2 years remaining). ETN has deployed 50 full time acquisition integration team members to accelerate CBE progress, and thus lacks the resources to adequately pursue additional large deals.” Given the improving outlook, Oppenheimer raised its price target on the company from $73 to $78.

Eaton Corp shares traded higher on Tuesday, gaining 1.35% on the day. The stock is up 30% YTD.

$3.2 Million Team Comes Back to Securities America

Securities America said early Tuesday that an advisor team led by Wayne Maier has returned to the broker-dealer, after spending the past six years with National Planning Corp.

Maier says that he and the five other reps on his team do more than $3.2 million in yearly fees and commission. They manage about $250 million in client assets and work on $200 million of retirement plan assets, as well, from their Bay City, Mich., office.

“We left because we thought we had unique opportunities at National Planning Corp.,” said Maier in an interview with ThinkAdvisor. “The cultural differences between a Midwest broker-dealer and a California company were something we were not prepared for.”

Maier adds that NPC is “phenomenal” to work with and “did nothing wrong.”  His team “was just not used to the fast-paced culture, so things didn’t mesh well.”

About a year ago, he reached out to Securities America, which was acquired by Ladenburg Thalmann (LTS) in 2011 from Ameriprise (AMP) and has about 1,750 advisors. Maier also discussed his situation and desire to move with several other broker-dealers “to see what was going on in the marketplace.”

Maier also stayed in touch with several executives at Securities America and discussed his plans to make a move with clients.

“We are pleased to have Wayne back, he is a great advisor who takes care of his clients, and he and his staff are consummate professionals,” said Gregg Johnson, senior vice president of branch office development and acquisitions for Securities America, in an interview.

“We think this sends a signal to those reps that have left for various reasons in past … of the value in what we are doing and improvements we continue t to make,” Johnson said. “It’s a strong signal to existing advisors, as well.”

(In June, advisors Shannon Case and Mark Slattery, who had left to affiliate with SII Investments from 2006-2013, came back to Securitiies America.)

Securities America recruited advisors with about $35 million in trailing-12-month fees and commissions last year. This included 320 advisors and staff, helping make 2012 the firm’s fourth best in its past 29 years of recruiting, he says.

Forward Focus

As for this year, the BD is “on pace and cautiously optimistic that we can top last year’s results by 15% to 20% in terms of fees and commissions,” according to Johnson.

A key reason for this boost, he says, is that that Ladenburg Thalmann gives the broker-dealer access to asset management, investment banking, trust services and a fixed-income desk.

“The market sees the quality broker-dealer that Securities America is, and with the stable ownership and what Ladenburg Thalmann brings with it – in terms of additional products and services,” said Johnson. “We have lots of interest and traction in the market.”

Another boost is coming from advisors who feel they may have “outgrown their broker-dealer” and are looking for a partner to give them coaching and other tools to “take them to next level,” the executive notes.

But advisors don’t want a BD that’s “so large or growing to a size that means advisors are not getting same level of attention, care and service they want,” he says.

Johnson, an Iowa native, says that Securities America is indeed proud of its Midwest-based culture, but it is growing on the East and West Coasts, as well.  It’s also proud of the fact that it was one of the first BDs to allow hybrid RIAs to join.

“We have always fostered RIAs,” he said. “It goes hand in hand with supporting the passion that advisors have to run their practices as they see fit.”

In July, Securities America teamed with NorthStar Financial Services Group to form Arbor Point Advisors, a joint venture that aims to “fill the gap” for independent advisors looking to operate via a hybrid-business model with a choice of custodial firms and without the need to run their own RIA.

The broker-dealer also hired three regional directors to focus on recruiting in New England, other parts of the Northeast and the Northwest.