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When Will The Dow Hit 15,000 ?

Saturday, February 28, 2009

Top March 2009 Stock Picks ! ( Family Dollar Stores & Allos Therapeutics


1. ALTH 5.84 a share Target price 12.00 by 12/09

Allos Therapeutics, Inc. is a biopharmaceutical company that is focused on developing and commercializing small molecule drugs for the treatment of cancer. The Company’s lead product candidate, PDX (pralatrexate) an antifolate is in Phase 2 trial in patients with relapsed or refractory peripheral T-cell lymphoma. The Company is also investigating PDX in patients with non-small cell lung cancer and a range of other lymphoma sub-types. The Company’s other product candidate is RH1, a targeted chemotherapeutic agent, which is in a Phase 1 trial in patients with advanced solid tumors or non-Hodgkin's Lymphoma.
No doubt the market has cost investors a lot of money over the past year and a half. The image of people too afraid to open their 401(k) statements has become cliché. And the common wisdom says that years will pass before those losses are recovered.
But that’s not necessarily the case. Speculating on the right stocks could generate sizable returns, enough to fill some of the holes this recession has poked in your portfolio. That’s one of the reasons that Cramer’s a fan of calculated risk taking. The potential payoff is significant. Speculation’s also a way to keep things interesting. Instead of banking with the usual suspects – maybe Coca-Cola
[KO 40.85 -0.22 (-0.54%) ]
Johnson & Johnson
[JNJ 50.00 -2.44 (-4.65%) ]
[AAPL 89.31 0.12 (+0.13%) ]
– investors can put their money in a small up-and-comer.
So who’s the latest Mad Money Spec Friday pick? Allos Therapeutics
[ALTH 5.64 -0.42 (-6.93%) ]
, a biotech with a $5.64 share price and a market cap of under $500 million. Like all speculation plays, Allos has a catalyst – the probable Food & Drug Administration approval of its cancer drug – that should send the stock higher.
Allos makes an orphan drug called Pralatrexate, or PDX, used to treat peripheral T-cell lymphoma, a fast-spreading cancer that affects white blood cells. Remember an orphan drug is one that treats a very rare condition. So the FDA usually fast tracks approval, the company gets exclusivity rights to the drug, and the sales usually bring in big, big money.
Exclusivity or not, though, PDX is the only treatment for peripheral T-cell lymphoma, so there’s no competition here anyway. President Obama’s plan for Medicare, where the government will negotiate bulk drug prices directly with pharmaceutical companies, could hurt those with similar treatments, but not Allos. And orphan drugs in Europe, where the government already negotiates prices, usually cost the same as, if not more than, those in the U.S. Besides, PDX has been proven to extend patients’ lives. Don’t expect the White House to put a price on that.
On Feb. 4, Allos released data that showed patients who had previously not responded to treatment were responding to PDX, and for longer than expected. The stock popped as a result, and then the market’s decline took ALTH back down. Now ALTH is two points below where it was before the data release, giving investors a great entry point.
Cramer expects Allos to file for final FDA approval by the end of June, which means the drug could be on the market by year’s end. Worst-case scenario, analysts have said, PDX is available to the public by 2010. Sales for the drug could reach as high as $400 million a year, with the chance for even better numbers given PDX’s potential for off-label uses, much like Genentech’s
[DNA 85.55 -1.93 (-2.21%) ]",

Avastin. PDX is more potent than other chemotherapy drugs, so there’s a good chance it could treat other cancers.
Allos makes a great takeover target as well. The company’s a natural fit for any big-time firm with a blood cancer franchise, such as Celgene
got a bid.
Allos reports Tuesday, March 3, so Cramer cautioned against buying before then. The company has no sales yet, so management offer clues as to whether the company’s still on track and possibly even date-release dates on the horizon.
ALTH is a buy at $6, Cramer said, but no more. At $7, the deal doesn’t work. Investors who want in should remember to be patient and use limit orders.



2. FDO 27.44 A SHARE AS OF 3/1 , TARGET PRICE 41.00 by 9/09

Family Dollar Stores, Inc. operates a chain of more than 6,500 general merchandise retail discount stores in 44 states, providing consumers with a selection of merchandise in neighborhood stores. The Company’s merchandise assortment includes consumables, home products, apparel and accessories, and seasonal and electronics. The Company’s products include apparel, food, cleaning and paper products, home decor, beauty and health aids, toys, pet products, automotive products, domestics, seasonal goods and electronics. With a Dividend of .14 a share , is a great buy in this market !In the same boat as Wal-Mart, discount retailers are the some of the few companies showed success in 2008. FDO's stock price gained 36% in 2008.Recession time will prompt more people to go to the dollar stores to $ave MONEY!!!! Due to people needing to cut back, people are going to eventually go from Walmart to Family Dollar as both are in the same merchant category and serve much the same purpose, but Family Dollar seems to undercut Walmart's prices for many items... but does so at a cost: lack of the wide range of products that Walmart does, but from what I've seen, this doesn't effect business one bit.Not bad on debt, fairly good P/E. I'm seeing a lot more "recession fashion" and how-to's on living more cheaply....this company is made for these times.I do about 75% of my regular shopping there (condiments, small food, bread, milk, some clothes.) The stores should do well in hard times.family Dollar Stores . . . need I say more?












Friday, February 27, 2009

Obama-Proof Stocks?

Cramer has been a bit nervous since President Obama announced his budget plans this week. Changes to Medicare immediately took down the health-care sector, and now the Mad Money host is wondering who might be next. That’s why he’s looking for stocks that don’t answer to Washington. It’s one of the few ways investors can find profits right now.

Australia is definitely out of Obama’s reach, which is one reason Cramer likes BHP Billiton [BHP 36.42 -0.72 (-1.94%).Plus, the world’s largest diversified resources company is probably the best play on China’s $600 billion infrastructure stimulus plan. And China, Cramer said, will be engine of any global economic recovery, with BHP as its supplier.


BHP is the world’s second-largest producer of iron ore, third largest of copper and nickel and number one for seaborne traded coking coal, which is used in steel production. These are all key to China’s build-out. Twenty percent of BHP’s fiscal 2008 sales came from that country, so the new stimulus should means the number will rise this year. BHP also owns some oil properties, which is another commodity China can’t get enough of.

A projected slump in iron ore sales to China is now lesser than expected thanks to that stimulus. Chinese iron ore inventories in the week ending Feb. 23 were down 6% year-over-year, 2% from the previous week and 23% from the September high. Cramer thinks they’ll reverse direction and head higher now. Already Chinese imported iron ore prices are up 25% since October. Hot-rolled steel is up 25% since mid-November, and new-home sales in China have doubled year-over-year, another sign that copper and other raw materials are in demand.

BHP did miss earnings estimates last quarter, but cash flows increased 74% year-over-year, the dividend was up 41% from last year, and the company reduced its net debt by 51%. Those cash flows lend security to BHP’s 4.5% dividend yield, and the stronger balance sheet allows for spending even during the downturn. And that’s just what BHP is doing. The company’s putting money to work to better position itself for the market’s eventual turn up.

The stock’s down to $36 from $95, but that dividend is safe – BHP is even in position to raise it – the balance sheet’s solid, the company’s capable of taking market share and this is most likely the largest beneficiary of China’s stimulus plan. Best of all: Obama can’t touch it. That’s why Cramer thinks BHP is a buy
cnbc.com











Tuesday, February 24, 2009

How does this financial collapse compare to the 1929, 1973 & 2000 bear markets?



Look at this image to see: How bad is this market ???

Your Thoughts ??

Friday, February 20, 2009

Chicago Tea Party - Rick Santelli's Revolution on CNBC




A new Boston Tea Party is going to be held in Chicago in July. Rick Santelli appeared on CNBC and voiced the frustration of many people over the bailouts, stimulus packages and mortgage plans. Rick speaks for alot of homeowners in the USA !?
What are your thoughts ?

Wednesday, February 18, 2009

Whole Foods Market Can Make U Whole Alot Of Mad Money For The Long Term ?


( WFMI ) 9.29 A Share as of 2/18/09 Target Price 19.75 By 2010.

Whole Foods Market, Inc. (Whole Foods Market) owns and operates a chain of natural and organic foods supermarket. As of September 30, 2008, the Company operated 275 stores organized into 11 geographic operating regions, 264 stores in 38 United States of America states and the District of Columbia; six stores in Canada, and five stores in the United Kingdom. This includes 55 stores (net of divested locations) acquired from Wild Oats Markets, Inc. (Wild Oats) on August 28, 2007, 52 stores in 20 United States of America states and three stores in Canada. Whole Foods Market’s product categories include, but are not limited to, produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, specialty (beer, wine and cheese), Whole Body (nutritional supplements, vitamins, body care and educational products, such as books), floral, pet products and household products.
Whole Foods Market Inc posted a quarterly profit that beat Wall Street estimates and forecast 2009 earnings ahead of analyst expectations.In the midst of a recession, Whole Foods -- which specializes in organic, natural and gourmet products -- has cut jobs, reduced its store opening plans, pared back its capital expenditure budget and suspended its cash dividend.

The company, nicknamed by some as "whole paycheck", also said it was working to provide more value to its customers, particular in its perishable food departments.

Mackey noted that the sale price of organic apples was about half the price of a year ago.

Stores now have displays comparing prices versus competitors and run contests where customers can win a basket full of merchandise if they correctly guess its price.
The company said it now expected full-year earnings to range between 71 cents and 76 cents per share. That compares to the 62 cents expected, on average, by Wall Street analysts.

Whole Foods said it would reduce capital spending during fiscal 2009 to a range of $350 million to $400 million from its earlier estimate of $400 million to $450 million. Wall Street hates this stock. Plenty of room for upgrades. Just reaffirmed '09 earnings. Ok performance. Consensus sentiment is against high-value food stores like WFMI. Recent capital infusion, however, mitigates forward going concerns. Negative sentiment overdone.Sometimes I wonder if the members bearish on Whole Foods have ever shopped there? I go there all the time and have never once been in a Whole Foods that wasn't packed. They have many loyal customers who shop there for many reasons beyond the organic produce. It is well worth the few extra dollars you will spend. Also, the growth rates haven't slowed down tremendously in the past year.Eating right today is Healthcare for the Health minded. Most people don't get this, they simply buy food based upon price. So they are able to criticise the company on how much everything costs because there is very little competition in this segment of the industry. Whole Foods enjoys a healthy pricing margin because it is a unique shopping experience with very knowledgeable staff. I think they wrap there stores in to much presentation and could save some money if they toned it down; however, that same presentation creates a colorful shopping environment that is easily recognized when other retailers try and copy it.All I know is that once you start shopping there, you don't want to stop...very high quality stuff that is almost impossible to find ALL-IN-ONEPLACE elsewhere! When your body feels better eating this stuff, it's hard to want to shop elsewhere...the cost, taste, and time savings seem worth the cost. I am a chef and when i need good quality organice food i shop at whole foods ! great customer service and well organized shopping Market ! This is a long term play , so buy on the dips and cash out when it reaches the target price , at 19.75 a share !

Monday, February 16, 2009

Pepsi Stock Fizzles ??


Pepsi Pours Unusually Wide Outlook

4Q NET FALLS ON CHARGES, OPERATING RESULTS MATCH FORECASTS

Pepsico (PEP) used to enjoy a reputation for being able to anticipate its case volume with canny accuracy. It never ordered more bottle caps than it did bottles. (Truth be told, that’s the task of its bottling partners, but we’re stretching for a metaphor here, so go with it.) So it’s a little unsettling to hear the company talking about growing operating EPS by the mid- to high- single-digits this year. For the soft drink maker, that’s a surprisingly wide forecast.

The good news is that, regardless of where those earnings alight exactly, they’re likely healthier than analysts have been forecasting. Estimates have called for EPS growth of 4% to some $3.81 for the year. Even a mid-single-digit profit improvement would likely eclipse that number.

But the company’s optimism has been mitigated. There’s non-operating issues, such as restructuring charges and hedging losses, which caused Pepsi’s fourth quarter net to fall 43%. There’s also the headwind caused by the stronger dollar.

Fundamentally, Pepsi sounded a cautious note about the start of the year, saying that the first half - and first quarter, in particular - represented the most difficult year-over-year comparisons it’s experienced in years. And that’s with North American beverage volumes, which declined 6% in the fourth quarter, having declined sharply last year.

The mixed messages effectively have put a hold on the stock in Friday’s early trading, leaving shares flat at $52, after the stock crashed to a low for the year south of $50 earlier this month. Pepsi is a good play for 2009 !, w/ a good Dividend!

Green Stock Picks



T. Boone Pickens and The "Pickens Plan" Could Make You Wealthy By Investing in Green Stocks - Wind Energy, VWS, SUZLON, CWP, BBW, GE, SI, FPL, ZOLT, OC, ABB, CPTC, ITC, NGG, PWR, GRH

T. Boone Pickens owns 40% of a company called Clean Energy Fuels Corp. (NASDAQ:CLNE). This is a company that provides natural gas for vehicle fleets in the U.S. and Canada. CLNE designs, builds, finances, and operates the fueling stations.



T. Boone Pickens owns 12% of Westport Innovations, Inc. (NASDAQ:WPRT) a leading developer of environmental technologies that enable vehicles to operate on clean-burning alternative fuels.



WRPT works with global automotive leaders such as Cummins Inc., Ford, and BMW to incorporate their technologies into leading manufacturers engines and to explore future commercial opportunities for clean vehicles.



Pickens� new company, Mesa Water, has been buying up ground water rights in Roberts County, Texas - 200,000 acres in all. He says that over a 30-year period, he expects to make more than $1 billion on his investment of $75 million.



Many others are coming to the realization that water is too cheap. Hence, water rights are a great buy today.



As an individual investor, you can�t trade water rights very easily. But you can invest in a company that owns almost as much water as Pickens does � in actuality, the acre feet that this Company owns are more valuable than what Pickens purchased.



PICO Holdings, Inc., (NASDAQ:PICO) together with its subsidiaries, engages in the ownership and development of real estate properties. It owns land and the related mineral rights and water rights in Nevada. The company is involved in water resource development business, such as developing new sources of water for water utilities, municipalities, developers, or industrial users. In addition, PICO Holdings engages in the acquisition and financing of businesses. It operates in the United States and Europe. The company was founded in 1981 and is based in La Jolla, California.



T. Boone Pickens thinks he'll earn $1 billion on his $76 million investment - or basically 13 times his money. PICO - already in this business, with substantial expertise and a portfolio of more valuable water rights - could do even better.



How T. Boone Pickens and The "Pickens Plan" Could Make You Wealthy By Investing in Green Stocks - Wind Energy, VWS, SUZLON, CWP, BBW, GE, SI, FPL, ZOLT, OC, ABB, CPTC, ITC, NGG, PWR, GRH



Vestas Wind Systems (CPH: VWS)

Vestas Wind Systems A/S engages in the manufacture, sale, and service of wind power systems that use wind energy to generate electricity. Its products primarily include a range of wind turbines and wind power systems. The company also offers VestasOnline Business, a SCADA system for modern wind power plants. This system includes a range of monitoring and control functions allowing the wind power plants to be controlled in the same way as a conventional power plant. In addition, it offers a range of project planning, installation, and operational services. Vestas Wind Systems A/S operates primarily in Europe, the Americas, and Asia/Pacific. The company was founded in 1945 and is headquartered...



Suzlon Energy Limited (NSE: SUZLON)

Suzlon Energy Limited engages in the manufacture and sale of wind turbine generators of various capacities and its components. It develops wind turbine generators of capacities ranging from 350 kilowatt to 2.1 megawatt. The company also offers gearboxes, towers, rotor blades, and wind turbines. In addition, Suzlon Energy Limited provides wind energy solutions, including wind resource mapping, site development and installation, and operations and maintenance services. It markets its products in India, Europe, the United States, China, and internationally. The company was founded in 1995 and is based in Pune, India.



Clipper Windpower Plc (LSE: CWP) (OTC: CRPWF)

Clipper Windpower Plc, together with its subsidiaries, operates as a wind energy technology, turbine manufacturing, and wind project development company. It engages in the design, engineering, and manufacture of wind turbines. The company primarily manufactures 2.5 megawatt Liberty wind turbines. It also develops wind energy projects, including engineering, construction, project financing, and plant operation in the Americas and Europe. The company was founded in 2001 and is headquartered in London, the United Kingdom with offices in California, Colorado, Iowa, and Maryland in the United States; Mexico; and Denmark.



GreenHunter Energy, Inc. (AMEX: GRH)

GreenHunter Energy, Inc., together with its subsidiaries, focuses on the renewable energy sectors of wind, solar, biofuels, and biomass power plants. The company?s assets consist of biodiesel, methanol, and glycerin refineries, as well as a terminal storage facility in Houston, Texas; biomass power plant located in Telogia, Florida; and a biomass facility in El Centro, California. It also develops wind farm projects in Montana, California, and New Mexico. GreenHunter Energy is headquartered in Grapevine, Texas.



Babcock & Brown Wind Partners (ASX: BBW) (OTC: BCKBF)

Babcock and Brown Wind Partners (ASX: BBW) is a specialist investment fund focused on the wind generation sector. BBW listed on the Australian Stock Exchange on 28 October 2005 and has a market capitalisation of approximately A$850 million.It is a stapled entity comprising Babcock and Brown Wind Partners Limited (ABN 39 105 051 616) Babcock and Brown Wind Partners Trust (ARSN 116 244 118) and Babcock and Brown Wind Partners (Bermuda) Limited (ARBN 116 360 715). BBW's portfolio (including the Eifel wind farm) comprises an interest in 16 wind farms on three continents that have a total installed capacity of over 700 MW and are diversified by geography, currency, equipment supplier, customer and regulatory regime.



GE Energy (NYSE: GE)

General Electric Company (GE) operates as a technology, media, and financial services company worldwide. It operates through four segments: GE Capital, Energy Infrastructure, Technology Infrastructure, and NBC Universal. The GE Capital segment offers an array of products and services that include commercial loans, operating leases, fleet management, financial programs, home loans, insurance, credit cards, personal loans, and other financial services. The Energy Infrastructure segment involves in the development, implementation, and improvement of products and technologies that harness various resources, such as wind, oil, gas, and water. The Technology Infrastructure segment focuses on build...



Siemens AG (NYSE: SI)

Siemens AG operates as an electronics and electrical engineering company worldwide. Its IT Solutions and Services business designs, builds, and operates discrete and large-scale information and communications-systems. The company?s Automation and Drives business offers automation systems, motion control and drive systems, low voltage controllers and installation systems, process automation systems and instrument products, and electronic assembly systems. Its Industrial Solutions and Services business develops solutions for industrial and infrastructure facilities. Siemens? Building Technologies business provides products, systems, and services for monitoring and regulating the temperature an...



FPL Group, Inc. (NYSE: FPL)

FPL Group, Inc., through its subsidiaries, engages in the generation, transmission, distribution, and sale of electric energy. It produces electricity through natural gas, wind, nuclear, oil, hydro, and other resources. As of December 31, 2007, the company served approximately 4.5 million residential, commercial, and industrial customers in the east and lower west coasts of Florida with a generating capacity of 37,700 megawatts. FPL Group also leases wholesale fiber-optic network capacity and dark fiber to telephone, Internet, and other telecommunications companies. The company was founded in 1984 and is based in Juno Beach, Florida.



Zoltek Companies, Inc. (NASDAQ: ZOLT)

Zoltek Companies, Inc., through its subsidiaries, develops, manufactures, and markets carbon fibers and technical fibers in the United States. Its carbon fibers are used in a range of commercial products, as well as in reinforcement material in composites, carbon fiber composite products, and filament winding equipment used in the composite industry. The company?s technical fiber is a stabilized and oxidized acrylic fiber used in flame and heat-resistant applications; and oxidized acrylic fibers are used to manufacture aircraft brake pads for heat/fire barrier applications.



ABB, Ltd. (NYSE: ABB)

ABB, Ltd. provides power and automation technologies to utility and industry customers worldwide. Its Power Products division offers products and services for power transmission and distribution, which include high- and medium-voltage switchgear and apparatus, circuit breakers, power and distribution transformers, and sensors and other products. The company?s Power Systems division provides various systems and services for power generation, transmission, and distribution comprising substations, high-voltage power converters, and advanced cables for underground and sub-sea power transmission; and systems to automate and control power plants, electrical, and other utility networks.



Composite Technology Corporation (OTCBB: CPTC)

Composite Technology Corporation engages in the development, manufacture, and marketing of renewable and energy efficient electrical energy products. The company operates through two segments, CTC Cable and DeWind. The CTC Cable segment sells aluminum conductor composite core (ACCC) conductors, a composite core overhead electrical transmission conductor, as well as manufactures and sells the composite core component of the ACCC conductor and various accessories. ACCC conductors enable grid operators to reduce blackouts and brownouts, providing a 'reserve electrical capacity' by operating at higher temperatures without significant thermal sag of the lines. This segment markets its cable to public, private, and governmentally owned utilities and transmission line operators. The DeWind segment designs, produces, and sells wind generation turbines in the 1.25 and 2.0 megawatt range under the brand name DeWind. It markets its wind turbines directly to wind farm operators. The company also provides consulting services related to the engineering, design, and installation of product sale solutions. It markets its products in the United States and Canadian markets, through a distribution and purchase agreements with General Cable Industries, Inc.; and directly through its subsidiary, CTC Cable Corporation. The company also offers its products in Europe and China. Composite Technology has a strategic alliance agreement with TECO-Westinghouse Motor Company. The company was founded in 1980 and is headquartered in Irvine, California.



ITC Holdings Corp. (NYSE: ITC)

ITC Holdings Corp., through its subsidiaries, engages in the transmission of electricity in the United States. It operates primarily as a conduit, moving power from generators to local distribution systems either entirely through its own system or in conjunction with neighboring transmission systems. The company?s operations include asset planning; engineering, design, and construction; maintenance; and real time operations of transmission systems. It offers its services to investor-owned utilities, municipalities, co-operatives, power marketers, and alternative energy suppliers. The company was founded in 2001 and is headquartered in Novi, Michigan.



National Grid plc (NYSE: NGG)

National Grid plc engages in the ownership and operation of regulated electricity and gas infrastructure networks. The company operates in four segments: Transmission, Gas Distribution, Electricity Distribution and Generation, and Non-Regulated Businesses and Other. The Transmission segment owns and operates high-voltage electricity transmission network in England, Wales, Scotland, New York, and New England; a gas national transmission system in Great Britain; electricity interconnectors with Scotland and France; and storage facilities for liquefied natural gas (LNG). The Gas Distribution segment owns and operates gas distribution networks in England, and in upstate New York, New York City, Long Island, Massachusetts, New Hampshire, and Rhode Island. The Electricity Distribution and Generation segment owns electricity distribution networks in upstate New York, Massachusetts, New Hampshire, and Rhode Island, as well as operates and manages electricity transmission and distribution network in Long Island on behalf of the Long Island Power Authority, and as a generator of electricity on Long Island. The Non-Regulated Businesses and Other segment involves in the provision of gas metering services; property management; and operation of LNG import terminal on the Isle of Grain. The company also holds interests in electricity interconnectors, metering services, LNG facilities, and properties in the United Kingdom; and LNG storage and transportation, unregulated gas transmission pipelines, and gas fields and home energy services in the United States. As of March 31, 2008, it served approximately 19 million consumers in the United Kingdom and the United States. The company was founded in 1990 and is based in London, the United Kingdom.



Quanta Services, Inc. (NYSE: PWR)

Quanta Services, Inc., a contracting services company, offers various network solutions to the electric power, gas, telecommunications, cable television, and specialty services industries, as well as to the commercial, industrial, and governmental entities primarily in the United States and Canada. Its electric power and gas network services comprise installing, repairing, and maintaining electric power transmission lines and power distribution networks; installing and maintaining gas transmission and distribution systems; providing cathodic protection design and installation services; installing fiber optic lines for voice, video, and data; installing and maintaining joint trench systems, including electric power, natural gas, and telecommunications networks; and designing and installing wind turbine networks. The company?s telecommunications and cable television network services consist of installing and maintaining fiber optic, copper, and coaxial cable networks; designing, constructing, and maintaining DSL networks; engineering and erecting cellular, digital, PCS, microwave, and other wireless communications towers; designing and installing switching systems for ILEC, CLEC, long distance providers, and cable television providers; splicing and testing fiber optic and copper networks; and residential installation and customer connects for cable television, telephone, and Internet services. In addition, it designs, installs, maintains, and repairs electrical components, fiber optic cabling, and building control and automation systems; installs intelligent traffic networks; installs cable and control systems for light rail lines, airports, and highways; and provides specialty rock trenching, rock saw, rock wheel, directional boring, and road milling for industrial and commercial customers. Further, the company engages in leasing point-to-point telecommunications infrastructure. Quanta Services, Inc. was founded in 1997 and is headquartered in Houston, Texas
Ecogreen.com

Sunday, February 15, 2009

Best Top Long Or Short Term Stock Pick For Day Traders & Investors


(Has) 23.80 a share as of 2/14 Target Price 40.00 a share

Hasbro, Inc. is engaged in providing children’s and family leisure time and entertainment products and services, including the design, manufacture and marketing of games and toys. The Company’s offerings include a variety of games, including traditional board, card, handheld electronic, trading card, role playing, plug and play, and digital versatile disc games, as well as electronic learning aids and puzzles. Toy offerings include boys’ action figures, vehicles and play sets, girls’ toys, electronic toys, plush products, pre-school toys and infant products, children’s consumer electronics, electronic interactive products, creative play and toy-related specialty products. The Company’s core brands include PLAYSKOOL, TRANSFORMERS,G.I. Joe, MY LITTLE PONY, LITTLEST PET SHOP, TONKA, SUPER SOAKER, MILTON BRADLEY, PARKER BROTHERS, TIGER and WIZARDS OF THE COAST.

EA has announced that development is underway to bring Hasbro's legendary G.I. JOE brand to Wii and DS in summer 2009 to coincide with the theatrical release of the G.I. JOE: THE RISE OF COBRA live-action movie from Paramount Pictures and Spyglass Entertainment, in association with Hasbro, which opens in US cinemas on 7th August, 2009. EA will unveil a "first look" of the G.I. JOE video game at Hasbro's Showroom at Toy Fair on February 15-17, 2009 in New York City.They have the right mix of popular names right now. Marvel and Transformers.Hasbro has enough classic board game titles to continue to do well. What better way to pass time during a recession that gathered around the dinning room table playing a family board game?Many of the games and toys Hasbro manufactures and markets are far beyond recognizable brands, they're iconic. Games like Battleship, Candy Land, Risk, and Twister? I think kids will continue to play these games simply because their parents did. Their parents can "get" all of these because they had them when they were kids. Hasbro will continue to develop new and exciting toys, but I think these old classics will always form a core for their business. A good long play.Very well positioned in terms of rights to characters and franchises. Walk down the isles of Target or Wal-Mart and most of the toys are made by this firm. With the glut of superhero movies driving demand in youth for their products, and lot of them, I see HAS in a good position.Good financials and great business model.So buy up some shares and mak some mad money !

Saturday, February 14, 2009

Bid For Sirius ? Bankruptcy On Tuesday Or Wednesday ?


Bids for Sirius XM may be fueled by longtime rivalry
DirecTV's John Malone and Dish Network's Charles Ergen are said to be in talks to strike some type of deal with the debt-laden firm. But just how badly they want the satellite radio company is unclear

By M. Zimmerman

The nation's only -- and ailing -- satellite radio company is drawing interest from two moguls of space-based entertainment.

Sirius XM Radio Inc. said Friday that it might be forced to file for bankruptcy as early as Tuesday if it fails to restructure its debt. As the deadline nears, speculation is growing of a possible bidding war over the company, which was formed last summer by the merger of Sirius Satellite Radio and XM Satellite Radio.In one corner is John Malone, 67, whose media empire includes a controlling stake in El Segundo-based satellite TV provider DirecTV Group Inc.

Opposite Malone is 55-year-old Charles Ergen, chief executive of rival Dish Network Corp. and its sister company, EchoStar Corp., both of which are based in suburban Denver.

The longtime rivals are said to be in talks to strike some type of deal with Sirius XM -- and the contest could be spirited. One analyst described Malone and Ergen as "cage match contestants," given their reputations for playing rough. But just how badly they want the satellite radio company is unclear.


Some analysts contend that gaining control of Sirius XM and its 18.9 million subscribers could provide some benefits to either DirecTV or Dish Network, but not necessarily enough to justify going forward with a deal.

More likely, they say, Ergen and Malone either see a chance to pick up valuable assets on the cheap or simply can't pass up an opportunity to make life difficult for an adversary.

"There are very few synergies between satellite TV and satellite radio," said Todd Mitchell, an analyst with Kaufman Bros. in New York. "Whenever one of these guys looks at an asset, the other guys will look at it just to drive up the price. It's just corporate hardball."

Representatives for DirecTV, Dish Network and Sirius XM declined to comment.

So far, Ergen seems the more serious contender. Last year, he made a takeover bid for Sirius XM, but was rejected. Since then, EchoStar has been buying up the radio company's debt, and reportedly owns most, if not all, of the $175 million of Sirius XM bonds that's coming due on Tuesday.

Ergen's reported interest in Sirius XM comes as Dish Network is losing subscribers and facing increased competition from cable TV and telephone companies. Some of the radio provider's satellites are in choice orbits and potentially could be "re-purposed" to expand Dish Network's high-definition offerings, or even to provide a competitive wireless broadband service to rural areas, Mitchell wrote in a recent report.

Sirius XM also has a network of ground facilities that could prove valuable to EchoStar, analysts say.

Malone, who controls DirecTV though his Colorado-based Liberty Media Corp., may be interested in Sirius XM more as another investment for his portfolio -- which includes stakes in Time Warner Inc. and Sprint Nextel Corp. -- than as an adjunct to DirecTV, said Benjamin Stretch, an analyst with Macquarie Capital USA in New York.

Being able to offer packaged TV and radio services to consumers already accustomed to receiving entertainment via satellite could help DirecTV woo additional subscribers, some analysts note. And combining call centers and other services could help both companies trim costs.

But "any synergies between satellite radio and satellite TV are just cream," Stretch said. "They can't be used to justify" a deal with Sirius XM.

At present, DirecTV appears to be doing well enough on its own.

This week, the former subsidiary of Hughes Electronics Corp. said it added 301,000 new subscribers in the fourth quarter despite the weak economy, beating analysts' forecasts. The company said its average revenue per customer -- a key industry yardstick -- increased to $90.46 from $87.40 a year earlier.

The company, which has 17.6 million subscribers, also predicted continued growth in the current quarter, with new subscriber growth at or above the levels of a year ago.

Sirius XM, meanwhile, is in increasingly dire straits. Besides dealing with a crushing debt load that threatens to push it into bankruptcy court, the New York-based company is trying to get out of some of its expensive programming deals.

Chief Executive Mel Karmazin -- who at age 65 is another veteran of the media wars -- is reportedly trying to renegotiate deals with Major League Baseball, the National Football League and Oprah Winfrey's production company, among others. Sirius XM also has a five-year, $500-million pact with shock jock Howard Stern that expires in 2010.

If it does come down to a choice between Malone and Ergen, the Liberty Media chief may have a personal edge. Karmazin and Ergen have clashed in the past.

"There's real bad blood between those two," Mitchell said.

Dish Network's stock rose 38 cents to close at $13.58 Friday and is up 22.5% this year. DirecTV shares, up 1.4% year-to-date, fell 24 cents to $23.24, while EchoStar shares slipped 4 cents to $15.17 and are now up 2% for the year.

Sirius XM's stock, which has fallen almost 97% over the last 12 months, gained 3 cents to 10 cents a share.
Siri shares might jump to .20 a share by wednesday , it is a risky loterry ticket however it can make u some risky Mad Money !

Sunday, February 8, 2009

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High Yield (Junk) Bond Funds: Past, Present and Future


High yield (junk) bonds are corporate bonds that are rated below investment grades which are reserved for the highest quality borrowers. Investment grade bonds are rated AAA, AA & A. Because those standards are so stringent, BBB, the next grade, is considered marginal investment grade. Bond ratings of BB, B & C are below investment grade (called junk bonds) because they carry higher risk. Buying individual bonds was always a little inconvenient plus very few corporate bonds (including those below investment grade) were readily available for trading by individual investors.
High yield (or junk) bond funds have been around for a good 20 years. They enable investors to buy shares in a portfolio of bonds rated below investment grade to obtain their high yields. In the past, net interest, after expenses, typically yielded about 9% (roughly 400 basis points above the Treasury bond rate) to investors. In the very best of days, junk bond fund yields were below 9% while down markets might force the rates upward towards 10%.
The fortunes of junk bonds have been running in roughly 10 year cycles. The two very ugly periods were around 1990 and then around 2000. 2009 will be their third trial period. These last two periods saw a rise in default rates causing lower dividends paid by junk bond funds. But they did muddle through and persevered.
Barclays (formerly Lehman) High Yield Bond Fund (JNK) is a junk bond market index but only has a one year history. It was pretty much flat in the first 6 months of 2008, remaining near 45. In the next two months it slipped to 43 in the weak stock market. Then came September when it ran into a brick wall, like the rest of the market. It dropped to 27 by the middle of December which raised the yield to over 16% or 1400 basis points above the Treasury bond rate. Since then it's rebounded as tax loss selling on related stocks ended and bargain hunters bought greatly oversold securities.
Turmoil in the financial markets starting with Q4 of 2008, brought new metrics for interest rates on junk bonds. In just a few months, yields on junk bond funds skyrocketed to 20+% or 2000+ basis points above the depressed yield on the long term Treasury bond. In the last couple of weeks, bargain hunters started buying junk bond funds to lock up extraordinarily high yields or maybe for quick profits on a short term rebound bounce.
In recent years, funds expanded their range of securities by adding emerging market bonds to their portfolios. These are bonds in foreign companies or countries, typically in eastern Europe, Latin America or Asia representing diversification by geography. The track record for these bonds is limited. But this year, emerging market bonds didn't decline as badly as US junk bonds did. Diversification by geography can be rated as a plus or minus. I view this form of diversification as a plus since a portfolio is not solely tied to the US economy.
As usual, the future is uncertain and high risk bonds face hazardous times given the turmoil in the financial markets. However yields on these securities remain at historically high yields and record premiums over the Treasury bond yield. The future for junk bond funds is not as bleak as some might assume. Let's take a look at a mythical fund, Risk Fund, in today's markets.
Risk Fund
Market price....5.00Dividend.........1.20Yield.................24%
Assuming the dividend is reduced to 80¢, when more traditional markets return a future valuation of the dividend might be around 10%. These assumptions would produce a future valuation:
Market price....8.00Dividend.........0.80Yield.................10%
Under this scenario, the higher dividend would be paid until cuts are made (possibly in 2009). Risk Stock fund this year might pay $1.00 in dividends followed by $.80 next year. The dividends and capital gains would give very attractive rates of return. Even the lowered dividend would provide a nice yield going forward.
I just received an interim report from a high yield fund. After 5½ years, the current net asset value is more than the starting net asset value plus accumulated dividends. The starting point was a fairly "good" time while present values are exceedingly low.
Exceptionally high yields on junk bonds are needed to compensate for the unusually high risk levels associated with these bonds. But where there is chaos, there is opportunity. A small portion of a portfolio could be invested in junk bond funds to earn exceptional yields which is gathering interest of the very brave investors.
Avi Morris ( Mad Money Reader )

Saturday, February 7, 2009

S&P 500 Dividend Aristocrats: Past, Present and Future


The S&P 500 Index includes some of the biggest and best known companies in the world and most pay dividends. A few years ago, S&P wanted to pull out those with the best track records for not only paying dividends, but increasing dividends over the years. They set a tough standard to filter out the best. Each company was required to have a minimum of 25 consecutive years of paying higher dividends. While the number of companies fluctuate a little from year to year, about 60 (roughly 11%) are currently S&P Dividend Aristocrats. Most have track records of 30, 40 or even 50+ consecutive years of paying higher dividends annually.

Since each company has an outstanding long term track record of paying dividends, this group can be used to obtain investment ideas. Such help is more important than ever after the pummeling virtually all stocks have taken in recent months.

However, care is always needed when selecting investments, even in this elite group, Of the seven banks in the group in 2005, only two remain. The most famous was Bank of America (BAC), which bragged in annual reports about its track record of raising dividends over the prior 30 years. Last year in Q3, instead of increasing the dividend, BAC merely mentioned declaring a regular dividend. In Q4, the dividend was cut in half. This year, on greater fears about the company and its dividend, sellers took the stock into single digits. The fears proved correct when BAC just cut their quarterly dividend to only one penny.

A few other companies have had their streak of higher dividends come to an end, but their numbers have been limited. One example, ConAgra (CAG), cut the dividend a couple of years ago. However, the stock has not sold off as badly as others in the recent market decline.

A few stocks in the group are facing difficulties. The most prominent is General Electric (GE), selling at a 15 year low. After recent problems in its businesses, especially the financial ones, General Electric has been talking about only maintaining the dividend, not increasing it. Earnings will be reported later this week. Fears of dismal earnings have caused the stock to sell off to under 14.

Pfizer (PFE) and Eli Lilly (LLY) are drug companies facing patent expiration on important drugs shortly, which could impair their ability to increase dividends. Masco (MAS) may see its 50 year track record of higher dividends come to an end in 2009 as their business selling to the housing industry is not earning the dividend. These companies have extraordinary yields of 6-9%, reflecting doubts about future.

But most companies have healthy balance sheets and good cash flows with excellent track records for increasing dividends. Just a few of the big names in the group that I like for no particular reason include:

3M (MMM)
Coca Cola (KO)
Exxon Mobil (XOM)
Johnson & Johnson (JNJ)
Kimberley-Clark (KMB)
McDonald's (MCD)
McGraw-Hill (MHP)
Procter & Gamble (PG)
Stanley Works (SWK)
VF Corp (VFC)
Walgreen (WAG)
Wal-Mart (WMT)
The recent fall in the stock market reinforces the age old advice "investigate before you invest," even for this very special group. The strong should survive and thrive over the long term. For example, I bought KO for my IRS 15 years ago. The stock has more than doubled the original price and reinvested dividends bring the total investment to almost triple. Almost 10 years ago I bought VFC which, again, has doubled the original price with reinvested dividends, bringing the total to almost triple. And today's valuations are held back because they are based on depressed market prices. Let Dividend Aristocrats provide helpful investment ideas for very smart investing.

Avi Morris

http://www.verysmartinvesting.blogspot.com/

MLPs Performed Well in January ( Avi Morris ) Madmoneyfund Reader


The stock market got off to a very bad start in 2009. The Dow has been in a trading range (roughly 8-9000) for the last 3 months. But January was the worst January in history. The Dow dropped almost 800 to close at 8001. For those who look to the first week and first month as indicators, they each had major declines signaling another down year.

The Alerian MLP Index started the year with a big gain on the first day & worked its way upward during the month. The index jumped 12 points on the first trading day followed by modest gains into the 190-200 zone where it remained. Last week, it went over 200 and is hovering there trying to establish 200 as a new floor. In the first month:

Dow Jones --- down..9%
MLP Index --- up...14%
The MLP index currently yields almost 11%, an enormous 800 basis points above the Treasury bond rate (200 basis points has been considered an ordinary spread). It has benefited from investors seeking high yield securities. Junk bond funds shot up 50+% from their overly depressed lows 2 months ago. Those yields are still at extraordinary levels, 15-20%.

The last 2 weeks have been very important for MLPs. This is when earnings are announced, guidance is given & quarterly distributions are set. With a number of MLPs selling in single digits, there was worry about many distribution cuts. Subsequent selling in those units could bleed to MLPs which are doing better. So far, distribution news has been fairly good, cuts have been limited. MLPs which have maintained or increased distributions have performed well.

Their businesses might be more heavily impacted by recessionary forces in the economy. It's difficult to forecast because they pay distributions from cash flow (as they define it), different than paying dividends from EPS. Also, very low prices for oil and other energy products could hurt. That's hard to anticipate since they do not own energy products, but a weak economy should hurt MLPs. Financing is available for the strongest. Kinder Morgan (KMP) is the largest MLP with an outstanding growth record of distribution increases. A few weeks ago they raised almost $1 billion by selling debt and units. For Q1, they raised the distribution to an annualized rate of $4.20. But their guidance for the year indicated $4.20 would be paid in 2009, implying no further increases during the year even though record payments in 2009 will be higher than in the prior year.

After an impressive January, the MLP Index is fighting to remain over 200. However continued weak markets could even drag down MLPs