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Glu Mobile Inc. (GLUU) Target Price $6 a share
is a top mobile gaming stock to buy at Cowen and Company for 2014. The company releases its video games internationally via multiple platforms, including iOS, Android, Amazon, Windows Phone and Google Chrome. Embodying the "freemium" model, games created by Glu are typically free to play. Glu generates revenue through in-game micro-transactions consisting of $1.99 or less. The Cowen price target for the stock is $6 and is the highest on Wall Street. The consensus target is posted at $4. Glu Mobile closed Thursday at $3.76. So a move to the Cowen target would represent a 40% gain for investors.
Sirius XM Radio Inc. (SIRI) Target Price $7 a share
continues to draw new subscribers with its programming, and it is also a top stock to buy at Merrill Lynch for 2014. Despite challenges from other companies offering audio programming, Sirius XM has continued to be a strong player despite the fact that the stock has the highest short interest on Wall Street. Merrill Lynch has a $5 target, and the consensus target stands at $7. The stocks closed Thursday at $3.59
Dunkin' Brands (NASDAQ: DNKN ) Target Price $55 a share
is one of Starbucks' largest competitors, and it too has had an impressive run in 2013. In Dunkin's most recent quarter, earnings grew 10.8% and revenue rose 8.5% year-over-year, as it was able to expand its operating margin an incredible 310 basis points to 44.1%.
Dunkin's stock has outperformed the market right alongside Starbucks' stock in 2013, rising about 42.71% as of the close on Dec. 27. Dunkin' expects full-year earnings to increase 17.2%-19.5% and revenue to grow 6%-8% year-over-year and I believe it could have an even better 2014. The outperformance of both Starbucks and Dunkin' shows the strength of the industry and both companies have expansion plans in place to take full advantage of this. Dunkin' is my second favorite play in the industry, so investors should take a close look at this one if they are not sold on Starbucks.
Cree Inc. (CREE) Target Price $80 a share
is a leader in the manufacture of light-emitting diodes, or LEDs. These energy-sipping bulbs, which require up to 85% less power than traditional bulbs and can last up to 25 times longer than traditional bulbs, are gaining popularity. Only about 3% of the U.S. population currently uses them, but government price subsidies are making them more popular and affordable.Cree, Inc. (Cree) develops and manufactures semiconductor materials and devices primarily based on silicon carbide (SiC), gallium nitride (GaN) and related compounds. It focuses its expertise in SiC and GaN on light emitting diode (LED) products. It develops lighting-class light emitting diode (LED) products, lighting products and semiconductor products for power and radio-frequency (RF) applications. The Company's lighting products consist of both LED and traditional lighting systems. The Company designs, manufactures and sells lighting systems for indoor and outdoor applications, with a primary focus on LED lighting systems for the commercial and industrial markets. In addition, the Company develops, manufactures and sells power and RF devices. The Company operates in three segments: LED Products, Lighting Products and Power and RF Products. In August 2011, the Company acquired Ruud Lighting, Inc. Cree is also stepping into the solar-power industry. That should help light up sales and profits for years to come and justifies the stock’s rich price, which amounts to 34 times estimated earnings.
J.C. Penney Company, Inc. (NYSE:JCP) Target Price $19 a share
J. C. Penney Company, Inc. is a holding company whose principal operating subsidiary is J. C. Penney Corporation, Inc. (JCP). The Company’s business consists of selling merchandise and services to consumers through its department stores and through its Internet Website at jcp.com. As of February 2, 2013, the Company operated 1,104 department stores throughout the continental United States, Alaska and Puerto Rico, of which 429 were owned, including 123 stores located on ground leases. It sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora inside jcpenney and home furnishings. In addition, the Company’s department stores provide its customers with services such as styling salon, optical, portrait photography and custom decorating.JC Penney are all fine examples of companies ...choice to be the biggest stock percentage mover in 2014. Volatility continues to be name of the game here with sales growth still an issue, tight liquidity, a possible CEO change, and valuation challenges. Sterne Agee has Penney as a Buy-rated stock with an upside potential of 13% and a price target of $19.00. The stock’s P/E ratio for 2014 is negative and the earnings per share (EPS) estimate is expected to be down by 62% after rising 70% in 2013. As the analysts say, “Buckle Up!” So how do you know which stocks are “buy and hold .
NII Holdings Inc (NASDAQ:NIHD) Target Price $5 a share
NII Holdings, Inc. (NII Holdings) is a holding company for the operations of Nextel Communications, Inc. in selected International markets. The Company provides wireless communication services under the Nextel brand. It provides its services through operating companies located in Brazil, Mexico, Argentina, Peru and Chile, with its principal operations located in business centers and related transportation corridors of these countries. The Company’s networks utilize integrated digital enhanced network, or iDEN, technology developed by Motorola, Inc. to provide its mobile services on its 800 mega hertz spectrum holdings in all of its markets.It agreed to sell approximately 2,790 cell towers in Brazil and another 1,666 towers in Mexico in an $811 million transaction. It will lease them back. It still needs them. But the amount of money raised will provide some welcome liquidity for NII Holdings.NII Holdings also sold its Peruvian operations in a deal for more than $410 million.
The stock took a hit last year after posting declines in wireless customers, but it's gaining ground again. It closed out its latest quarter with 9.9 million subscribers, 100,000 more than it had a year earlier.
Things aren't perfect. The average revenue per user has fallen as NII Holdings kicks in with retention efforts to keep customers around. The mobile provider is also losing a lot of money, and that's not good for a highly leveraged company. The $1.2 billion raised in the two deals equals NII Holdings' market cap, but its enterprise value is north of $5 billion given the substantial debt levels.
However, the welcome liquidity and the long-term prospects for wireless services through Latin America make NII Holdings a risky play with some serious potential upside
In August 2013, NII Holdings Inc announced it has completed sale of its Peruvian operations to Empresa Nacional De Telecomunicaciones SA. In November2013, NII Holdings, Inc sold 1,483 communications sites in Mexico to American Tower Corporation.
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