Archive for 'NASDAQ'

Investors expect to increase commodity investments over the next 12 months, even though short-term uncertainty is keeping them on the sidelines for now, according to a new survey by Credit Suisse.

Credit Suisse conducted the survey as part of its inaugural 2011 New York City Commodities Day on Tuesday, June 28, with a gathering of nearly 400 clients covering a wide cross section of institutional investors, retail distributors, mutual funds and hedge funds.

The survey found that 36% of investors classified themselves as currently “underweight” in commodities, with a further 10% having zero exposure. However, when asked about their expected investment level over the next 12 months, 40% expected to become “overweight” commodities and only 3% as still having zero exposure.

Two-thirds ( 65%) of respondents believe that commodities prices in 12 months will be around current levels or higher, with roughly half of those expecting prices to be at least 10% higher. That compares with only 13% that expect prices to be at least 10% lower, but a significant proportion (23%) admitted to having “no idea”.

Despite the recent moderation in oil prices, investors remain bullish on crude oil, with 76% believing that the oil price has yet to peak. Dismissing a dominant role of market speculation in determining oil prices, 72% said they believe energy prices are primarily driven by market fundamentals. Copper remains the favorite base metal, with 59% seeing it has having the best 12-month outlook of the group. However, the price path for commodities is expected to remain challenging, with 55% expecting realized price volatility to increase over the next 12 months.

The survey also examined the trend away from broad market benchmarks into more specialized products for commodity exposures. 45% of respondents said they view commodity ETFs as likely to receive the greatest asset flow, while 40% saw active indices and fundamentally based directional trading as the key growth areas. In comparison, only 5% said beta benchmarks will be growth products within commodities. In a separate question about Dodd-Frank regulatory changes, 74% said they expect no significant impact on their commodities investment activities.

“Overall sentiment towards commodities as an asset class is constructive, but investors are under allocated due to concerns about short term direction and volatility,” said Oscar Bleetstein, Head of Commodity Investor Sales for the Americas at Credit Suisse.  “However, the survey confirmed our views that if and when confidence starts to return, investors are likely to increase exposure significantly and find managers or products that can accommodate this new environment.”

Credit Suisse

Credit Suisse AG is one of the world’s leading financial services providers and is part of the Credit Suisse group of companies (referred to here as ‘Credit Suisse’). As an integrated bank, Credit Suisse offers clients its combined expertise in the areas of private banking, investment banking and asset management. Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 50,100 people. The registered shares (CSGN) of Credit Suisse’s parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

Investment Banking

In its Investment Banking business, Credit Suisse offers securities products and financial advisory services to users and suppliers of capital around the world. Operating in 57 locations across 30 countries, Credit Suisse is active across the full spectrum of financial services products including debt and equity underwriting, sales and trading, mergers and acquisitions, investment research, and correspondent and prime brokerage services.

Asset Management

In its Asset Management business, Credit Suisse offers products across a broad spectrum of investment classes, including hedge funds, credit, index, real estate, commodities and private equity products, as well as multi-asset class solutions, which include equities and fixed income products. Credit Suisse’s Asset Management business manages portfolios, mutual funds and other investment vehicles for a broad spectrum of clients ranging from governments, institutions and corporations to private individuals. With offices focused on asset management in 19 countries, Credit Suisse’s Asset Management business is operated as a globally integrated network to deliver the bank’s best investment ideas and capabilities to clients around the world.

All businesses of Credit Suisse are subject to distinct regulatory requirements; certain products and services may not be available in all jurisdictions or to all client types.

http://www.credit-suisse.com

The Editorial Advisory and Securities Review Committee of BetterInvesting Magazine today announced V.F. Corporation (NYSE: VFC) as its September 2011 “Stock to Study” and JPMorgan Chase & Co. (NYSE: JPM) as its September 2011 “Undervalued Stock” for investors’ informational and educational use.

“The committee chose V.F. Corporation for its well-diversified apparel lines and growth potential internationally and in the direct-to-consumer market,” said Adam Ritt, editor of BetterInvesting Magazine. “For the Undervalued selection, the committee expects JPMorgan Chase to be one of the primary beneficiaries of eventual improvements in the industry environment.” Check BetterInvesting Magazine’s September issue for more details about these selections.

Committee members are Robert M. Bilkie, Jr., CFA; Daniel J. Boyle, CFA; Philip S. Dano, CFA; Donald E. Danko, CFA; Maury Elvekrog, CFA; Walter J. Kirchberger, CFA; Marisa Lenhard, CFA; and Paul McVey, CFA.

As stated, the BetterInvesting committee’s Stock to Study and Undervalued Stock choices are for the informational and educational uses of investors and are not intended as investment recommendations. BetterInvesting urges investors to educate themselves about the stock market so they can make informed decisions about stock purchases. For more information about investment education tools available to individual investors and investment clubs visit www.betterinvesting.org.

BetterInvesting Magazine is published monthly by BetterInvesting.
BetterInvesting is the brand identity of the National Association of Investors Corporation, a national, nonprofit association with members consisting of individual investors and investment clubs. Founded in 1951 and with headquarters in Madison Heights, Mich., BetterInvesting is considered the voice of the individual investor, as well as the pioneer of the modern investment club movement. BetterInvesting is dedicated to providing a sound program of investment education and information to help its members become successful long-term, lifetime investors. For more information about BetterInvesting, visit its website at www.betterinvesting.org or call toll free (877) 275-6242. For additional BetterInvesting data and news releases, visit the Media Center at www.betterinvesting.org/mediacenter.

http://www.betterinvesting.org

Real-Time Stock Picks on Android App Debuts

First App to Include Stock Prices, Socially Curated News from Hundreds of Sources, Trending Tickers and Real-Time Ideas on the Fastest Growing Mobile Platform

StockTwits for Android

Quote start“StockTwits for Android is the best way to see stock prices, trending news headlines and real-time ideas for specific stocks, while keeping up with new ideas in the market through Trending Tickers on StockTwits” – Howard Lindzon, CEOQuote end

StockTwits®, a real-time social idea network for the investing community and creator of the $(TICKER) tag for the widest syndication of investment information, today announced the availability of StockTwits for Android, making the app available on millions of mobile devices around the world. StockTwits for Android is the only mobile app for the Android platform that provides mobile users a place for stock prices, financial news from across the web curated and filtered by a community of investors and traders, trending tickers and real-time ideas from the StockTwits stream. The StockTwits Android app is available today at http://stk.ly/stdroid.

According to The Nielsen Company, more than one-third of consumers plan to make their next smartphone purchase an Android handset. With its rise in popularity and number of Android-powered handsets on the market today, StockTwits will give millions of consumers access to timely investing information on their smartphones. Unlike other Android finance and stock apps, the StockTwits app provides investors with everything they need to see real-time trends, news and ideas about the stocks they are interested in – and the opportunity to learn from talented investors and traders who are members of the StockTwits community. The app also allows users to share ideas directly from their phone, reaching the StockTwits community as well as the StockTwits distribution network of top social media and financial sites, including Yahoo! Finance, Bing Finance, CNN Money, Reuters, Twitter, Facebook and LinkedIn.

Key Benefits of StockTwits for Android Include:

  • Access to real-time stock quotes from the mobile phone
  • Headlines and links to the most important financial and stock news curated by the largest social network of investors and traders
  • The ability to create a “Watchlist” to quickly and easily access specific investments or ideas on the go
  • Stay on top of the market with the “Trending” view of stocks, which is a list of stocks being discussed most frequently
  • View and share real-time investment ideas by accessing the StockTwits network from anywhere

“The Android platform is growing exponentially, and with the new StockTwits app, we’re able to give millions of investors a new way to stay in touch with the market from their mobile phones,” said Howard Lindzon, co-founder and chief executive officer at StockTwits. “The app is the best way to see stock prices, trending news headlines and real-time ideas for specific stocks, while keeping up with new ideas in the market through Trending Tickers on StockTwits – features not found in any other mobile app.”

About StockTwits
With offices in San Diego and New York, StockTwits is a real-time, social idea network for the investing community and creator of the $(TICKER) tag for the widest syndication of investment information. It provides a specialized environment created specifically for investors where users can customize information and networks based on interests and investments, and corporations can easily monitor, disseminate and manage communication within the social media environment. StockTwits was named “One of the Best Websites, 2010” by Time Magazine, and was listed as one of the “10 Most Innovative Companies on the Web” by Fast Company.

The 401K Generator made its debut at last months Million Dollar Round Table Conference in Atlanta. Financial professionals from across the country got a chance to see this game changing educational tool that will literally alter the course of business for them. Buy, hold and pray is dead, the American Wealth Investing Institute developed the 401K Generator as a risk management tool that provides financial professionals the necessary education to help them manage client’s 401k portfolios.

Quote start“The most amazing thing I’ve seen for a long time in the financial world. I have new clients calling me about this all hoiurs of the day, I have never had clients calling me about Insurance or Annuities” Dean Vagnozzi – Financial professional, PAQuote end

It is an investors responsibility to apply some form of risk management to ones retirement portfolio, it time to take charge and select the Mutual Funds your 401K is invested in. Buy, hold and pray is dead, the 401K Generator risk management tool provides financial professionals the necessary education to help their clients 401k portfolios. This tool developed by the American Wealth Investing Institute, gives financial professionals an advantage to grow and build a business with new leads with the benefit of additional revenue streams.

Since 2008 Americans have suffered a stock market crash, a busted mortgage bubble, a real estate disaster and loss of jobs due to huge layoffs. These fallout’s have created a recession that many did not expect or have seen the likes of since the 1930s’. Furthermore, with the crisis facing our Social Security benefits and pensions being almost a thing of the past, many Boomers are now facing the ugly reality that they will outlive their retirement savings.

A recent 2011 [Gallup Poll confirms that the top concern for two-thirds of Americans is that they will not have enough money for retirement, 13% up from 10 years ago. Gallup says that 74% of non-retiree investors plan to rely on a 401K, IRA or other retirement savings in the declining absence of Social Security.

Another survey conducted by the Boston Consulting Group found that investors find retirement planning overwhelming and confusing, 89% want help finding the right formula to manage this process.

Most Americans are busy with family, jobs and other personal activities. As a result they do not want to take the time or be interest to become experts in planning for retirement. Many confess that because of a lack of knowledge, they fall into the buy, hold and pray trap with a 401K plan. Unfortunately, many are not able to get financial professionals help in-spite of the fact that for most Americans, 401Ks represent the second largest investment they will make in life next to buying a home.

The American Wealth Investing Institute developed the 401K Generator which consist of three components; the Mutual Fund Analyzer: a tool that analyzes in seconds, the performance of over 22,000 mutual funds through the use of a proprietary SPX signal created from the S&P 500 Index. The signal includes looking at how fundamental, technical, statistical and seasonal investors look at the market. This knowledge is used to formulate a bullish stance on the market with a risk management bear signal in place. An SPX Bull/Bear Market Newsletter provides an analysis tool and allows users to not only sort by profit and loss on buy and hold but also by their performance had they followed the SPX Bull/Bear Market Newsletter. The third component is email and text message alerts that notify subscribers of a change in the newsletters stance on the market, allowing users to not have to log on every day to find out when things change.

The 401K Generator made its debut at last months Million Dollar Round Table Conference in Atlanta. Financial professionals from across the country got a chance to see this game changing educational tool that will literally alter the course of their business.

For more information or to subscribe to the 401K Generator go to 401kgenerator.com

Asset-Backed Mutual Fund Launched by Angel Oak

Asset-Backed Mutual Fund Launched by Angel Oak-Image via Wikipedia

Angel Oak Capital Advisors, LLC (Angel Oak) is pleased to announce the launch of the Angel Oak Multi Strategy Income Fund (The Fund, Ticker: ANGLX). The Fund offers an easier way for individual and professional investors to invest in alternative fixed income instruments. It seeks to achieve high current income while providing less interest rate sensitivity than traditional fixed income assets.

The fund is managed by an Angel Oak team headed by portfolio managers Brad Friedlander and Ashish Negandhi.

“Our strategy initially is to focus on the asset-backed securities market. This asset class has traditionally been available only to hedge fund like structures, so we are excited to be opening a mutual fund that takes advantage of these types of opportunities in the fixed income marketplace,” said Friedlander, Angel Oak’s managing partner. Even though the initial focus will be on the asset-backed securities market, the Fund’s versatility allows the portfolio management team to continuously evaluate relative-value opportunities across all areas of the fixed income market. The advisor’s knowledge and expertise enhances its ability to incorporate alternative, structured and traditional fixed income.

“The Fund invests across fixed rate and floating rate securities, in an effort to effectively manage the interest rate risk of the overall portfolio according to our current views on the market,” added Friedlander.

Investors can purchase the Fund directly or through TD Ameritrade. More options to purchase the fund will be available over the coming months.

About Angel Oak Capital Advisors, LLC

Angel Oak Capital Advisors, LLC, is a boutique asset management firm based in Atlanta, with $200 million in assets under management. The firm is a fixed income specialist focused on creating value through fundamental credit analysis and asset selection.  The widely experienced Angel Oak Capital team targets its strategies to the unique needs of institutional investors and individuals. For more information, visit www.angeloakcapital.com.

MUTUAL FUNDS INVOLVE RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL

Disclosure Statement: Past results are not indicative of future results. There is risk of loss when investing in mutual funds. Investors should carefully consider the investment objectives, risks, charges and expenses of the Angel Oak Multi Strategy Income Fund. This and other important information about the Fund is contained in the Prospectus, which can be obtained by calling 678-856-3275. The Prospectus should be read carefully before investing.

Distributed by Unified Financial Securities, Inc., 2960 North Meridian Street, Suite 300, Indianapolis, IN  46208. (Member FINRA)
http://www.angeloakcapital.com

Gold vs. The Fed

Gold vs. The Fed

Gold vs. The Fed-Image by digitalmoneyworld via Flickr

There were no worldwide financial crises of major magnitude during the Bretton Woods era (1947 to 1971), proving that Gold and Free Markets are a more efficient regulator of monetary policy than the Federal Reserve. When it last met, the FOMC signaled its desire to increase the rate of inflation by providing additional monetary stimulus. This policy is based on a false and dangerous premise – that manipulating the dollar’s buying power will lead to higher employment and economic growth. But empirical experience of the past 40 years points to the opposite conclusion. Guaranteeing a stable value for the dollar by restoring dollar-gold convertibility would be the surest way for the FED to achieve its dual mandate of maximum employment and price stability. For the 20 years (1947 to 1967) under dollar-gold convertibility, unemployment averaged only 4.7% and never rose above 7%, while real growth averaged 4% a year. Low unemployment and high growth coincided with low inflation, which averaged only 1.9% while interest rates were low and stable. However, since 1971 when President Nixon introduced Socialist Price Controls and formally broke the link between the dollar and gold, the USA has suffered higher unemployment (averaging 6.2%, more than 1.5 percentage points above the 1947-67 average) and lower real growth rates (averaging less than 3%). In addition, we have since experienced the three worst recessions since the end of World War II, with the unemployment rate averaging 8.5% in 1975, 9.7% in 1982, and above 9.8% for the past 2 years. During these 39 years of Government and FED manipulation, the consumer-price index rose, on average, 4.4% a year. That means that a dollar today is only worth about 1/6th of what it was worth in 1971.

Interest rates, too, have been high and unstable with Treasuries averaging more than 8% and hitting a high in 1980 of 21% and until 2003, never falling below 6%. This is symptomatic of the monetary uncertainty that has reduced the economy’s ability to recover from both external and internal shocks and led directly to one financial crisis after another. The world suffered no fewer than 10 major financial crises, beginning with the Oil Crisis of 1973 and culminating in the Financial Crisis of 2008-09, and now the Sovereign Debt Crisis and potential Currency Wars of 2010-11, and a MUNI Bond crisis looming for 2011. At the center of each of these crises were gyrating currency values – as the dollar’s value gyrates, it produces windfall profits and losses destroying the Capitalist System by interfering with the life blood signals given off by Supply and Demand. Thus, it never achieves the false promises that a floating dollar would make American labor more competitive and improve the nation’s trade balances. In 1967, one Dollar could buy the equivalent of 2.4 Euros and 362 Yen. Over the succeeding 42 years, the Dollar has been devalued by 72% against the Euro and 75% against the Yen. Yet net exports have fallen from surpluses up until 1967 to a $450 billion deficit today. The FOMC, like their predecessors, after 42 years still do not know what it is that needs to be done. By keeping the federal-funds rate near zero for almost two years, small businesses still cannot get loans and seniors not only suffer from the loss of safe retirement income due to artificially low interest rates, but they’re now advocating higher inflation at a time when their measures of inflation have completely broken down and are distrusted by everybody, both Foreign and Domestic, in the fallacious hopes of spurring economic growth and creating jobs. Economists may disagree on why the Gold Standard (Capitalism) delivered such superior results compared to the recurrent instability and overall inferior economic performance delivered by the current system (Socialism), but the data is clear. A Gold-based Capitalist System delivers higher employment and more price stability. The time has come to begin the serious work of reversing our accelerating march towards European style Socialism and move back as quickly as possible to a Gold backed Capitalist system for the benefit of America and the World.

The Communist’s desire for worldwide domination through an appointed UN, has been succeeding slowly but surely over the last 65 years, by first constantly changing their names from Progressives to Democrats, to Liberals (Socialists) and now back again to Progressives. This is an ongoing attempt to fool the electorate as to what and who they really are and blame their failures on Capitalism. Their political success really blossomed when the Socialists succeeded in taking over control of our education system so that even so called Conservative Economists were brought up on text books written by Socialists. (I was brought up on Samuelson and Keynes, but fortunately for me I could not get into Princeton or Harvard because their Jewish quota was full). They have succeeded to the point that, with the backing of a Liberal Press and Media, they are now blaming the debacle that we are now in on greedy banks, investors and businesses under the Capitalist system, feeding speculation and poor judgment. In truth the two housing bubbles were fed totally by 40 years of government interference with the workings of Capitalism.

Not knowing what else to do beginning in 2001, individual investors started accumulating Gold, while both the governments and their bankers were dumping Gold in an effort to hold down its rise. But today, most country’s central bankers are now piling back into Gold in hopes of finding a safe haven, while trying to get out of Fiat Currency, especially Euros and US Dollars (while trying their best to avoid crashing the dollar. This is a common sense response to the FOMC’s intention to decrease the buying power of the Dollar and destroy our savings.

GOOD LUCK AND GOD BLESS

Learn how to buy gold and make great money doing it! Forex Signals is the best investment in ANY economy!

ETFs: Warnings From SEC

Certain ETFs May Not be Appropriate for Long-term Investors

Exchange-traded funds (ETFs) have grown increasingly popular with retail investors during the last decade. Securities regulators are concerned that investors may not understand how these complex investment products work or the potential risks they may face.

The Pennsylvania Securities Commission (PSC) today cautioned investors to make sure they understand ETFs before they invest and consider whether these investments are right for them. The PSC’s ETF advisory is available at www.psc.state.pa.us.

“As with any investment, investors should know what they are investing in. They should understand the risks, costs and tax consequences before investing in ETFs. Check under the hood,” said Chairman Robert Lam.

Exchange-traded funds are baskets of investments such as stocks, bonds, commodities, currencies, options, swaps, futures contracts and other derivative instruments that are created to mimic the performance of an underlying index or sector.

While ETFs are often compared to mutual funds and marketed to investors seeking safe, stable investments, not all ETFs are the same. The PSC’s advisory notes that some traditional ETFs may be appropriate for long-term holders, but others, including exotic leveraged and inverse ETFs, may require daily monitoring.

Two years ago, the association of state securities regulators, the North American Securities Administrators Association (NASAA), identified unsuitable ETF sales as a top threat to Main Street investors. “We continue to actively scrutinize a variety of issues related to ETF sales practices, such as point of sale disclosures, and the suitability of these products, particularly inverse and leveraged ETFs for long-term investors,” Commissioner Tom Michlovic said.

The ETF advisory outlines several risks associated with ETFs, including:

  • Liquidation. The number of ETFs that are shut down or liquidated, while previously a rare occurrence, is on the rise, up 500 percent in each of the last three years over 2007 levels (which equates to one ETF each week).
  • Fees. Leveraged and inverse ETFs must be traded all the time, therefore incurring substantial brokerage fees and commissions.
  • Tax Consequences. Leveraged and inverse ETFs may be less tax efficient due to daily resets that can result in significant short-term capital gains that may not be offset by a loss.

 

“Before you invest, you should contact the PSC to determine if the ETF and the person recommending the investment are properly registered with Pennsylvania,” Commissioner Steven Irwin said. Contact the PSC at 1-800-600-0007.

http://www.psc.state.pa.us

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Recent Zacks Analyst Blog Highlights

Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ConAgra (NYSE: CAG), Rite Aid (NYSE: RAD), Lennar (NYSE: LEN), Jabil Circuit Inc. (NYSE: JBL) and Paychex Inc. (Nasdaq: PAYX).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

Weak Jobless Claims

Stocks will likely continue to reflect what Fed Chair Bernanke said, or didn’t say, on Wednesday even as we got another negative labor market report this morning. The weak growth picture emerging out of the Fed chief’s news conference and today’s Jobless Claims report will likely force stocks to give back the gains of the last few days.

I discuss the disconcerting aspect of what the Fed chief said Wednesday below, but let’s look at this morning’s weaker than expected labor market report first.

Jobless Claims increased 9 thousand to 429 thousand, while the four-week average remained unchanged at 426 thousand. This is the 11th week running that the jobless claims number has remained above the 400 thousand level. Today’s number is a reversal of last week’s report and takes us back to the negative upward trend that we have been consistently seeing since early April. This does not bode well for the June non-farm payroll report coming early next month.

With respect to the Fed, it delivered as expected on most issues. It left interest rates unchanged, announced the end of QE2, and reiterated a positive economic outlook for the second half of the year. Importantly, the Fed did not tip its hand on another round of monetary stimulus.

But one negative thing stood out for me in the Fed chief’s news conference and this pertained to the causes of the ongoing weakness in the economy. Everybody, including the Fed, expects the weakness to be temporary and restricted to the first half of the year, with ‘normal’ growth resuming in the second half of the year. The consensus narrative assigns the blame for the weakness to factors such as Japan, high fuel costs, and inclement weather.

On Wednesday, the Fed chief came across as tentative and uncertain in explaining the causes of the softness. Granted, he did mention the above referred factors (Japan/Fuel), but stated that they were ‘partly’ to blame. Here is a direct quote of what Bernanke said on Wednesday, as reported by the Wall Street Journal:

“We don’t have a precise read on why this slower pace of growth is persisting…Maybe some of the headwinds that had been concerning us, like weakness in the financial sector, problems in the housing sector, balance sheet and deleveraging issues, some of these headwinds may be strong or more persistent than we had thought.”

This is a far less benign take on the ongoing economic weakness than a few transitory factors holding us back. if the causes of the slowdown are more structural and enduring, then we may have to recalibrate our growth outlook for the rest of the year.

Aside from Fed watch and the labor market report, we also have a few earnings reports this morning. ConAgra (NYSE: CAG) modestly missed on earnings, but beat on revenues. Rite Aid (NYSE: RAD) beat both earnings and revenue expectations, while homebuilder Lennar (NYSE: LEN) came ahead of expectations.

Jabil Reports Mixed 3Q

Jabil Circuit Inc. (NYSE: JBL) reported third quarter 2011 earnings of 49 cents per share, which missed the Zacks Consensus Estimate by a penny.

However, earnings per share (EPS) increased 75.0% year over year from 28 cents (including stock-based compensation but excluding amortization) reported in the prior-year quarter.

The strong results were driven by solid revenue growth in the quarter (up 22.2% year over year to $4.23 billion).

Operating Performance

Net income surged 83.4% year over year to $109.9 million. Net margin was 2.6% in the quarter compared with 1.7% in the year-ago period.

The solid bottom-line growth was driven by operating margin expansion in the quarter. Operating income shot up 51.1% year over year to $157.7 million in the first quarter. Operating margin was 3.7% compared with 3.0% in the year-earlier quarter.

Segment wise, Diversified manufacturing margin was 6.2% in the quarter. Core operating margin for the Enterprise and Infrastructure segment was 3.9%. High velocity posted a margin of 2.0% in the quarter.

The strong growth in operating margin fully offset a slight decline in gross margin. Although gross profit increased 21.5% year over year from $318.4 million in the quarter, gross margin stood at 7.5% in the quarter, down from 7.6% in the prior-year quarter.

The strong growth in operating margin was primarily driven by modest increases in selling, general and administrative expense (SG&A) and research and development expense (R&D), which were outpaced by strong revenue growth in the quarter.

SG&A expense increased 1.8% year over year to $154.1 million, while R&D was up 3.0% year over year to $6.5 million in the third quarter.

Guidance

Jabil expects net revenue in the range of $4.1 billion to $4.3 billion for the fourth quarter of 2011. Diversified Manufacturing is expected to grow 7.0% sequentially, Enterprise and Infrastructure is anticipated to increase 3.0% sequentially, while High Velocity is forecasted to decline 13.0% on a sequential basis in the fourth quarter.

Jabil forecasts operating income for the fourth quarter (excluding stock-based compensation) in the $165.0 million to $185.0 million range (4.0% to 4.3% of the total revenue).

Jabil expects non-GAAP earnings per share to be between 52 cents and 60 cents for the fourth quarter. The Zacks Consensus Estimate is currently pegged at 48 cents (Zacks Consensus Estimate includes stock-based compensation).

Jabil expects to achieve revenues of $16.4 billion for fiscal 2011 (up approximately 22.3% year over year) and $20 billion by 2013.

Recommendation

Jabil provided a robust fourth quarter outlook, anticipating strong top-line growth for fiscal 2011 on the back of a mix shift toward high-margin diversified manufacturing systems. We believe Jabil remains well positioned to grow from the increasing adoption of clean technology and alternative energy. Moreover, a lean cost structure, increasing cash flow generation capabilities and an improving balance sheet are positives for the stock.

Paychex Disappoints in Q4

Paychex Inc. (Nasdaq: PAYX) reported fourth-quarter fiscal 2011 earnings of 33 cents per share, which came in line with the Zacks Consensus Estimate. Though the quarter’s results indicate an improving client retention rate and higher checks per client, lower sale of new units remains an overhang.

Revenues

Paychex reported fourth-quarter 2011 revenues of $522.7 million, which missed the Zacks Consensus Estimate of $542.0 million, but increased 5.3% from $496.2 million reported in the year-ago quarter. The revenue upside can be attributed to year-over-year growth in both checks processed per client and the HR services client base.

Payroll Service segment revenue increased 4.6% from the year-ago quarter to $356.9 million, attributable to the contribution from SurePayroll Inc., acquired in February. Excluding the SurePayroll contribution, Payroll revenue would have grown only 3.0%.

Continued growth in checks processed per client as well as revenue per checks also added to the growth. However, the increase in new unit sales was sluggish, due to the limited number of new companies commencing business during the quarter.

The Human Resource Services segment generated $153.5 million in revenues, up 8.7% from the prior-year quarter. The improvement was partly due to the contribution from ePlan Services, which was acquired in May. The number of client employees served and the number of clients grew during the quarter, contributing to the increase. Moreover, demand for a new product, HR Essentials, also added to the segment’s revenue growth.

Guidance

For fiscal 2012, Paychex expects a 5–7% increase in Payroll Service revenues compared to the year-ago quarter. Human Resource Services revenues are expected to increase in the range of 12.0% to 15.0%.

Total service revenue is likely to grow in the range of 7% to 9%. The company expects a 12–14% decline in interest on funds held for clients and a roughly 2% increase in net investment income.

Interest on funds held for clients and investment income for fiscal 2012 are expected to be impacted by the low interest rate environment. However, investment of cash generated from operations is expected to continue, so investment income will increase.

Net operating income is expected in the range of 35–36% of total service revenue. The effective tax rate is expected to be roughly 35% and net margin is projected at between 5% and 7%.

The guidance for fiscal 2012 includes anticipated results from Paychex’s recent acquisition of SurePayroll Inc. and its ePlan Services. The acquisitions are expected to have approximately a 2% positive impact on revenue, nonetheless resulting in earnings dilution of around 1 cent per share due to amortization on acquired intangible assets and some one-time acquisition costs.

Our Take

The fourth quarter has been lackluster over the past few years, relative to the other three quarters. Although results matched the company’s guidance in the fourth quarter of 2011, we are disappointed with the top line, which was well below our estimates.

However, we remain positive on management’s positive commentary regarding continued investments in product development and synergies from the recent acquisitions. We also believe that cost control measures will remain catalysts for Paychex, going forward.

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The Right Way To Increase Returns From Stock Option Trading

The Right Way To Increase Returns From Stock Option Trading-Image by Getty Images via @daylife

There was a steady rise in the employment of stock options by stockholders to maximise their leverage and returns during the last 12 months. Chicago Board Options Exchange affirms this observation when they reported recently the month of March was their busiest on record with volume up fifty five % over the same month last year. In truth all prior stock option dealing records were damaged when over 5.6 million stock option contracts were traded in one day.

Stock option trading enables investors to increase their leverage and thus their rate of return over simple stock trading. If an investor has a solid approach to picking stocks that go up in the short term, the returns can be increased by 10 to 15 times using stock options. The trade off for this increased return is that the investor has to also judge the time period over which the increase will occur.

Having the ability to pick the stock, direction, and time period are all vital for successful stock option dealing. A probabilistic research of over 30 years of stock information has made public certain reoccurring patterns that will yield significant returns in stock options trading. The research was done with custom developed software and then the technique was applied to all stocks for the last 5 years. Stock dealing ended in a mean return per trade of 3.2%, but with stock option dealing the average return per trade was over fifty five % for 2005.

Investors have already begun to exploit the patterns found in this research and are reporting highly profitable trades. Whenever investors find inefficiencies in the market, there is a rush to take advantage of those inefficiencies.

Although stock options are not available on all stocks, about half of the stocks found in the analysis did have tradable options. If the trend of increasing use of stock options by investors continues, we should see even more stocks add options for investors. It is easy to see that 60 to 70 percent of actively traded stocks will have option contracts available in the coming year if this trend continues.

Backers are suggested to look rigorously at the open interest and volume when considering which option contract to purchase. A low volume / open interest will most likely result in huge spreads between the bid / ask costs and therefore reduce profits, and it may make it tricky to sell the option contract.

Another thing to be considered in picking the option contract is volatility. Stocks with high swings in costs will translate into dearer options since the options will have a larger chance of being in the money. If you’ve got a trustworthy method of predicting stock movement, this higher price won’t be a consideration.

Want to find out more about best short term stocks, then visit Author Name”s site and get related info about top canadian penny stocks for your needs.

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