Best 2014 Stocks to buy & own for Long Term Play #2014stocks $NIHD $JCP $CREE $DNKN $SIRI $GLUU

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.

US Markets Volume Leaders

US
NASDAQ
NYSE MKT
NYSE



Symbol

Name

Last Trade

Change

Volume

Related Info


FB Facebook, Inc. 49.75 Nov 1 Down 0.46 (0.91%) 95,032,876 Chart, Profile, More
BAC Bank of America Corporation Com 14.02 Nov 1 Up 0.05(0.36%) 75,610,402 Chart, Profile, More
ABX Barrick Gold Corporation Common 18.01 Nov 1 Down 1.38 (7.12%) 74,460,845 Chart, Profile, More
SIRI Sirius XM Radio Inc. 3.79 Nov 1 Up 0.0250(0.66%) 62,049,407 Chart, Profile, More
JCP J.C. Penney Company, Inc. Holdi 8.14 Nov 1 Up 0.64(8.53%) 56,964,136 Chart, Profile, More
GE General Electric Company Common 26.54 Nov 1 Up 0.40(1.53%) 55,644,125 Chart, Profile, More
F Ford Motor Company Common Stock 16.89 Nov 1 Down 0.22 (1.29%) 52,492,989 Chart, Profile, More
AIG American International Group, I 48.28 Nov 1 Down 3.37 (6.52%) 51,746,122 Chart, Profile, More
T AT&T Inc. 36.24 Nov 1 Up 0.04(0.11%) 41,490,103 Chart, Profile, More
MU Micron Technology, Inc. 17.58 Nov 1 Down 0.10 (0.59%) 41,372,306 Chart, Profile, More
MSFT Microsoft Corporation 35.53 Nov 1 Up 0.12(0.34%) 40,271,887 Chart, Profile, More
HPQ Hewlett-Packard Company Common 25.92 Nov 1 Up 1.55(6.36%) 34,178,359 Chart, Profile, More
CSCO Cisco Systems, Inc. 22.57 Nov 1 Up 0.01(0.02%) 33,332,149 Chart, Profile, More
BBRY BlackBerry Limited 7.77 Nov 1 Down 0.16 (1.96%) 32,766,523 Chart, Profile, More
GM General Motors Company Common S 37.39 Nov 1 Up 0.44(1.19%) 30,765,422 Chart, Profile, More
ALU Alcatel-Lucent Common Stock 3.89 Nov 1 Up 0.06(1.57%) 30,267,897 Chart, Profile, More
FSLR First Solar, Inc. 59.14 Nov 1 Up 8.83(17.56%) 28,397,635 Chart, Profile, More
INTC Intel Corporation 24.33 Nov 1 Down 0.14 (0.59%) 28,305,937 Chart, Profile, More
PFE Pfizer, Inc. Common Stock 31.17 Nov 1 Up 0.49(1.58%) 28,012,235 Chart, Profile, More
RAD Rite Aid Corporation Common Sto 5.27 Nov 1 Down 0.06 (1.13%) 26,475,382 Chart, Profile, More
JPM JP Morgan Chase & Co. Common St 52.51 Nov 1 Up 0.97(1.88%) 25,796,825 Chart, Profile, More
EMC EMC Corporation Common Stock 23.65 Nov 1 Down 0.42 (1.75%) 24,660,108 Chart, Profile, More
GRPN Groupon, Inc. 9.93 Nov 1 Up 0.80(8.70%) 24,210,858 Chart, Profile, More
PBR Petroleo Brasileiro S.A.- Petro 16.97 Nov 1 Down 0.46 (2.64%) 23,613,746 Chart, Profile, More
NQ NQ Mobile Inc. American Deposit 12.78 Nov 1 Down 1.62 (11.25%) 22,782,457 Chart, Profile, More
NOK Nokia Corporation Sponsored Ame 7.62 Nov 1 Down 0.01 (0.13%) 22,587,006 Chart, Profile, More
ANR Alpha Natural Resources, inc. c 7.43 Nov 1 Up 0.43(6.14%) 22,406,694 Chart, Profile, More
AA Alcoa Inc. Common Stock 9.27 Nov 1 0.00(0.00%) 22,047,458 Chart, Profile, More
ARIA ARIAD Pharmaceuticals, Inc. 2.58 Nov 1 Up 0.38(17.27%) 21,938,583 Chart, Profile, More
MRK Merck & Company, Inc. Common St 45.23 Nov 1 Up 0.14(0.31%) 20,893,721 Chart, Profile, More
DRYS DryShips Inc. 3.07 Nov 1 Up 0.31(11.23%) 20,624,735 Chart, Profile, More
VALE VALE S.A. American Depositary 16.38 Nov 1 Up 0.36(2.28%) 20,529,579 Chart, Profile, More
XOM Exxon Mobil Corporation Common 89.82 Nov 1 Up 0.20(0.22%) 19,024,810 Chart, Profile, More
C Citigroup, Inc. Common Stock 48.74 Nov 1 Down 0.04 (0.08%) 19,004,072 Chart, Profile, More
DOLE Dole Food Company, Inc Common S 13.65 Nov 1 Up 0.10(0.74%) 18,228,405 Chart, Profile, More
ITUB Itau Unibanco Banco Holding SA 15.11 Nov 1 Down 0.29 (1.90%) 17,258,829 Chart, Profile, More
CLF Cliffs Natural Resources Inc Co 27.34 Nov 1 Up 1.66(6.46%) 17,246,577 Chart, Profile, More
KOG Kodiak Oil & Gas Corp Common St 12.38 Nov 1 Down 0.59 (4.55%) 16,585,195 Chart, Profile, More
ODP Office Depot, Inc. Common Stock 5.77 Nov 1 Up 0.18(3.22%) 16,529,333 Chart, Profile, More
WFC Wells Fargo & Company Common St 42.67 Nov 1 Down 0.02 (0.05%) 15,539,833 Chart, Profile, More
YHOO Yahoo! Inc. 33.18 Nov 1 Up 0.24(0.73%) 15,205,446 Chart, Profile, More
ORCL Oracle Corporation Common Stock 33.53 Nov 1 Up 0.03(0.09%) 15,115,766 Chart, Profile, More
AVP Avon Products, Inc. Common Stoc 18.27 Nov 1 Up 0.77(4.40%) 15,070,075 Chart, Profile, More
NEM Newmont Mining Corporation 25.98 Nov 1 Down 1.28 (4.70%) 15,063,231 Chart, Profile, More
XRX Xerox Corporation Common Stock 10.02 Nov 1 Up 0.08(0.80%) 15,029,679 Chart, Profile, More
MS Morgan Stanley Common Stock 29.20 Nov 1 Up 0.47(1.64%) 14,966,756 Chart, Profile, More
RF Regions Financial Corporation C 9.55 Nov 1 Down 0.08 (0.83%) 14,831,960 Chart, Profile, More
VOD Vodafone Group Plc 36.91 Nov 1 Up 0.06(0.15%) 14,724,661 Chart, Profile, More
TCS THE CONTAINER STORE GROUP, INC 36.20 Nov 1 Up 18.20(101.11%) 14,669,627 Chart, More
ONNN ON Semiconductor Corporation 7.52 Nov 1 Up 0.47(6.59%) 14,669,407 Chart, Profile, More
AMD Advanced Micro Devices, Inc. Co 3.31 Nov 1 Down 0.03 (0.90%) 14,422,036 Chart, Profile, More
KGC Kinross Gold Corporation Common 4.82 Nov 1 Down 0.25 (4.93%) 14,307,485 Chart, Profile, More
S Sprint Corporation Common Stock 6.87 Nov 1 Up 0.14(2.08%) 13,936,720 Chart, Profile, More
MGM MGM Resorts International Commo 19.30 Nov 1 Up 0.26(1.37%) 13,836,770 Chart, Profile, More
CX Cemex, S.A.B. de C.V. Sponsored 10.51 Nov 1 Down 0.07 (0.66%) 13,776,881 Chart, Profile, More
DAL Delta Air Lines, Inc. Common St 26.70 Nov 1 Up 0.32(1.21%) 13,682,269 Chart, Profile, More
WLT Walter Energy, Inc. Common Stoc 17.24 Nov 1 Up 1.35(8.50%) 13,375,117 Chart, Profile, More
BSX Boston Scientific Corporation C 11.75 Nov 1 Up 0.06(0.51%) 13,187,863 Chart, Profile, More
ZNGA Zynga Inc. 3.58 Nov 1 Down 0.0010 (0.03%) 12,625,080 Chart, Profile, More
X United States Steel Corporation 25.78 Nov 1 Up 0.89(3.58%) 12,447,428 Chart, Profile, More
CMCSA Comcast Corporation 48.65 Nov 1 Up 1.05(2.20%) 12,432,962 Chart, Profile, More
KO Coca-Cola Company (The) Common 39.61 Nov 1 Up 0.04(0.10%) 12,430,394 Chart, Profile, More
EBAY eBay Inc. 51.94 Nov 1 Down 0.77 (1.46%) 12,346,728 Chart, Profile, More
QUNR 28.40 Nov 1 Up 13.40(89.33%) 12,083,145 Chart, More
WU Western Union Company (The) Com 17.48 Nov 1 Up 0.46(2.70%) 11,960,312 Chart, Profile, More
VZ Verizon Communications Inc. Com 50.49 Nov 1 Down 0.02 (0.04%) 11,450,089 Chart, Profile, More
SD Sandridge Energy Inc. Common St 6.38 Nov 1 Up 0.04(0.63%) 11,124,392 Chart, Profile, More
PHM PulteGroup, Inc. Common Stock 17.55 Nov 1 Down 0.10 (0.57%) 11,103,529 Chart, Profile, More
ELN Elan Corporation, plc ADR 17.00 Nov 1 Up 0.34(2.04%) 10,876,591 Chart, Profile, More
QCOM QUALCOMM Incorporated 69.90 Nov 1 Up 0.41(0.59%) 10,847,215 Chart, Profile, More
ACI Arch Coal, Inc. Common Stock 4.29 Nov 1 Up 0.05(1.18%) 10,807,824 Chart, Profile, More
HTZ Hertz Global Holdings, Inc Comm 22.75 Nov 1 Down 0.21 (0.91%) 10,801,179 Chart, Profile, More
GG Goldcorp Inc. Common Stock 24.32 Nov 1 Down 1.11 (4.36%) 10,731,787 Chart, Profile, More
EA Electronic Arts Inc. 25.63 Nov 1 Down 0.62 (2.36%) 10,725,011 Chart, Profile, More
HBAN Huntington Bancshares Incorpora 8.85 Nov 1 Up 0.05(0.51%) 10,457,396 Chart, Profile, More
LINE Linn Energy, LLC 30.82 Nov 1 Up 3.12(11.26%) 10,401,481 Chart, Profile, More
ARNA Arena Pharmaceuticals, Inc. 4.39 Nov 1 Up 0.01(0.23%) 10,331,180 Chart, Profile, More
FCX Freeport-McMoRan Copper & Gold, 36.78 Nov 1 Up 0.02(0.05%) 10,320,867 Chart, Profile, More
AUY Yamana Gold Inc. Ordinary Share 9.33 Nov 1 Down 0.60 (6.04%) 10,237,389 Chart, Profile, More
GLW Corning Incorporated Common Sto 17.13 Nov 1 Up 0.04(0.23%) 10,208,852 Chart, Profile, More
MHR Magnum Hunter Resources Corpora 7.12 Nov 1 Down 0.01 (0.14%) 10,207,610 Chart, Profile, More
WEN Wendy's Company (The) 8.73 Nov 1 Up 0.04(0.46%) 10,087,422 Chart, Profile, More
TEVA Teva Pharmaceutical Industries 37.12 Nov 1 Up 0.03(0.08%) 10,081,211 Chart, Profile, More
LOW Lowe's Companies, Inc. Common S 49.18 Nov 1 Down 0.60 (1.21%) 9,961,634 Chart, Profile, More
PBR-A Petroleo Brasileiro S.A.- Petro 17.70 Nov 1 Down 0.46 (2.53%) 9,926,955 Chart, Profile, More
XCO EXCO Resources, Inc. Exco Resou 5.56 Nov 1 Up 0.15(2.77%) 9,838,491 Chart, Profile, More
SID Companhia Siderurgica Nacional 5.73 Nov 1 Up 0.19(3.43%) 9,831,454 Chart, Profile, More
AAPL Apple Inc. 520.03 Nov 1 Down 2.67 (0.51%) 9,817,472 Chart, Profile, More
WFT Weatherford International, Ltd 16.37 Nov 1 Down 0.07 (0.43%) 9,755,600 Chart, Profile, More
AMAT Applied Materials, Inc. 17.70 Nov 1 Down 0.15 (0.87%) 9,638,109 Chart, Profile, More
SPLS Staples, Inc. 16.18 Nov 1 Up 0.05(0.32%) 9,470,960 Chart, Profile, More
RIG Transocean Ltd (Switzerland) Co 47.56 Nov 1 Up 0.49(1.04%) 9,460,659 Chart, Profile, More
GILD Gilead Sciences, Inc. 70.97 Nov 1 Down 0.21 (0.29%) 9,399,040 Chart, Profile, More
CVX Chevron Corporation Common Stoc 118.01 Nov 1 Down 1.95 (1.63%) 9,344,455 Chart, Profile, More
SYMC Symantec Corporation 22.77 Nov 1 Up 0.02(0.07%) 9,331,128 Chart, Profile, More
NIHD NII Holdings, Inc. 3.3950 Nov 1 Down 0.0350 (1.02%) 9,305,945 Chart, Profile, More
IDIX Idenix Pharmaceuticals, Inc. 4.6150 Nov 1 Up 1.3250(40.27%) 9,190,606 Chart, Profile, More
SCHW Charles Schwab Corporation (The 23.12 Nov 1 Up 0.47(2.08%) 9,055,989 Chart, Profile, More
DHI D.R. Horton, Inc. Common Stock 18.51 Nov 1 Down 0.44 (2.32%) 8,983,789 Chart, Profile, More
BK Bank of New York Mellon Corpora 32.36 Nov 1 Up 0.56(1.76%) 8,965,083 Chart, Profile, More


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Headlines


Sunday, November 3, 2013
T
VODAT&T's Love Affair With Vodafone at Seeking Alpha Sun 2:52PM EST
AAPLHow Many iPads Will Apple Sell This Weekend? at Motley Fool Sun 2:48PM EST
EAElectronic Arts Has the Lineup to Deliver Revenue: Analyst at Wall St. Cheat Sheet Sun 2:37PM EST
MSFTNintendo's Curse Haunts Microsoft's Xbox and Sony's PlayStation at Motley Fool Sun 2:17PM EST
YHOOYahoo's Mayer on the Talent Hunt for Tech Journalists (Even From AllThingsD!) at AllThingsD Sun 2:11PM EST
INTCDoes Intel’s New Stance on ARM Chips Change Everything? at Wall St. Cheat Sheet Sun 2:07PM EST
AAPLSamsung Now Outranks Apple in Tablet Customer Satisfaction at Motley Fool Sun 2:01PM EST
INTCIs Intel's New Baseband Modem a Serious Threat to Qualcomm? at Motley Fool Sun 2:00PM EST
NQMuddy Waters Viewed Right on NQ Mobile Payments, Wrong on Cash at Bloomberg Sun 1:51PM EST
AAPLiFixit Unveils the iPad Air's Guts at Motley Fool Sun 1:47PM EST
CVXCan Chevron See A Turnaround? at Wall St. Cheat Sheet Sun 1:46PM EST
BAC
CPuerto Rican debt threat to global banks at Financial Times Sun 1:43PM EST
AAPLHere’s Why Apple May Get a Holiday Shopping Bonus This Year at Wall St. Cheat Sheet Sun 1:43PM EST
CMCSAThe Top 5 Film Controversies of 2013 at Wall St. Cheat Sheet Sun 1:30PM EST
SDWill SandRidge Stand Up to Chesapeake and Devon Energy? at Motley Fool Sun 1:18PM EST
CVXThe Dow's 5 Most Loved Stocks at Motley Fool Sun 1:06PM EST
AIG
WFCWhat These 3 Stocks Taught Us This Week at Motley Fool Sun 1:02PM EST
JCPJ.C. Penney's 3 Biggest Mistakes at Motley Fool Sun 1:01PM EST
FBWhat Do Social-Media Earnings Tell You About Future Stock Performance? at Motley Fool Sun 1:00PM EST
KOCoke a good play for low-volatility, income seeking, investors, Barron's says theflyonthewall.com Sun 12:53PM EST
FIs a wacky '70 Plymouth Superbird worth $500,000? at USA TODAY Sun 12:39PM EST
AAPLApple's head of iOS engineering Henri Lamiraux has left the company at The Verge Sun 12:38PM EST
DRYSWhy DryShips Is A Lucrative Investment at Seeking Alpha Sun 12:37PM EST
ABXBarrick Gold - hidden treasure at Financial Times Sun 12:33PM EST
FBSome 13-Year-Olds Tell Us Why They Think Facebook Stinks Business Insider Sun 12:22PM EST

Top NASDAQ Volume Leaders - #GRPN, SIRI, FB, CSCO,#MSFT, PPHM, EROC, MU, YHOO, AAPL, RIMM

Groupon (NASDAQ: GRPN) is trading down 22.52% and was last sold at $5.85. The stock traded as high as $6.00 and as low as $5.76. GRPN had previously closed at $7.55. 16,354,560 shares of the stock traded hands today.

Sirius XM Radio Inc. (NASDAQ: SIRI) is trading down 1.20% and was last sold at $2.48. The stock traded as high as $2.53 and as low as $2.48. SIRI had previously closed at $2.51. 8,963,640 shares of the stock traded hands today.

Facebook (NASDAQ: FB) is trading down 3.47% and was last sold at $20.85. The stock traded as high as $21.60 and as low as $20.82. FB had previously closed at $21.60. 6,874,795 shares of the stock traded hands today.

Cisco Systems, Inc. (NASDAQ: CSCO) is trading down 0.40% and was last sold at $17.27. The stock traded as high as $17.40 and as low as $17.17. CSCO had previously closed at $17.34. 4,776,602 shares of the stock traded hands today.

Microsoft Corp (NASDAQ: MSFT) is trading down 0.66% and was last sold at $30.19. The stock traded as high as $30.39 and as low as $30.17. MSFT had previously closed at $30.39. 3,833,379 shares of the stock traded hands today.

Peregrine Pharmaceuticals Inc (NASDAQ: PPHM) is trading down 6.99% and was last sold at $2.66. The stock traded as high as $3.21 and as low as $2.62. PPHM had previously closed at $2.86. 3,427,076 shares of the stock traded hands today.

Eagle Rock Energy Partners (NASDAQ: EROC) is trading up 1.26% and was last sold at $8.83. The stock traded as high as $8.85 and as low as $8.70. EROC had previously closed at $8.72. 2,640,598 shares of the stock traded hands today.

Micron Technology, Inc. (NASDAQ: MU) is trading down 0.30% and was last sold at $6.70. The stock traded as high as $6.78 and as low as $6.68. MU had previously closed at $6.72. 2,512,097 shares of the stock traded hands today.

Yahoo! Inc. (NASDAQ: YHOO) is trading down 0.47% and was last sold at $14.95. The stock traded as high as $15.05 and as low as $14.84. YHOO had previously closed at $15.02. 2,443,258 shares of the stock traded hands today.

Apple, Inc (NASDAQ: AAPL) is trading up 0.60% and was last sold at $633.81. The stock traded as high as $635.30 and as low as $631.85. AAPL had previously closed at $630.00. 2,228,732 shares of the stock traded hands today.

Research In Motion (NASDAQ: RIMM) is trading down 2.23% and was last sold at $7.89. The stock traded as high as $8.09 and as low as $7.88. RIMM had previously closed at $8.07. 2,093,223 shares of the stock traded hands today.

Intel (NASDAQ: INTC) is trading up 0.19% and was last sold at $26.74. The stock traded as high as $26.81 and as low as $26.63. INTC had previously closed at $26.69. 2,024,784 shares of the stock traded hands today.

Zynga Inc. (NASDAQ: ZNGA) is trading flat unch and was last sold at $2.93. The stock traded as high as $2.95 and as low as $2.91. ZNGA had previously closed at $2.93. 1,955,031 shares of the stock traded hands today.

Velti (NASDAQ: VELT) is trading up 11.65% and was last sold at $7.86. The stock traded as high as $8.61 and as low as $7.70. VELT had previously closed at $7.04. 1,924,318 shares of the stock traded hands today.

eBay, Inc. (NASDAQ: EBAY) is trading up 0.60% and was last sold at $45.59. The stock traded as high as $45.87 and as low as $45.30. EBAY had previously closed at $45.32. 1,875,727 shares of the stock traded hands today.

Frontier Communications (NASDAQ: FTR) is trading down 2.49% and was last sold at $4.70. The stock traded as high as $4.88 and as low as $4.68. FTR had previously closed at $4.82. 1,737,377 shares of the stock traded hands today.

NVIDIA (NASDAQ: NVDA) is trading down 0.20% and was last sold at $14.78. The stock traded as high as $14.88 and as low as $14.71. NVDA had previously closed at $14.81. 1,713,731 shares of the stock traded hands today.

Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) is trading up 0.41% and was last sold at $7.27. The stock traded as high as $7.35 and as low as $7.27. ARNA had previously closed at $7.24. 1,701,294 shares of the stock traded hands today.

Oracle (NASDAQ: ORCL) is trading up 0.61% and was last sold at $31.55. The stock traded as high as $31.59 and as low as $31.30. ORCL had previously closed at $31.36. 1,475,273 shares of the stock traded hands today.

Comcast Co. (NASDAQ: CMCSA) is trading up 0.67% and was last sold at $34.78. The stock traded as high as $34.88 and as low as $34.62. CMCSA had previously closed at $34.55. 1,388,071 shares of the stock traded hands today.

Big Returns In 2012? Go W/ Small Cap , Mid cap, Large Cap, or Penny Stocks ?

Small-caps have started to outperform large-caps, but they remain depressed from year-ago levels. We are still early in the economic recovery, which suggests smaller companies have room to run fundamentally. I have shared other reasons for my favorable outlook. If you agree, you might want to shift your exposure by focusing on smaller companies. Alternatively, you can use ETFs such as the iShares Russell 2000 (IWM) or the iShares Russell Micro-Cap (IWC).

How valuable is Southern Company?

Thinking about the value of a company, I think about growth. What kind of opportunity does a company have for growth in the future? If we look at SO's price to sales ratio, it will give us a good barometric reading of its potential for growth. The lower the price/sales ratio, the healthier it is. Comparing SO to the electric industry, (2.87 to 41.11) we realize that this company is by far a huge leader in its industry and had very good growth potential for a long term investor.

Caribou Coffee Company Inc. (CBOU) is currently trading near $13 a share with a 52-week range of $8.50 to $17.40. It does not pay a dividend. Earnings per share is $1.66, and price to earnings ratio is 8.01. Market capitalization is $275.82 million. Management reported net sales of $80.3 million for the second quarter ended July 3. This is up 16.5 percent over last year’s second quarter net sales of $68.9 million. Cost of sales increased 24.1 percent, with second quarter 2011 costs of $37.9 million versus $30.5 million for the same quarter 2010. Management increased earnings expectations throughout the remainder of the year.

The coffee industry has been characterized by volatility, but recent reports indicate that world coffee demand outpaces supply, which bodes well for the immediate growth future of JVA. A seasonal spike in sales is expected over the holiday season. JVA is trading near the lower end of its 52-week range at a price that doesn’t frighten investors, but the range itself points to a great deal of price volatility. Though somewhat speculative, a purchase seems reasonable and can be averaged over time with additional purchases.

Chipotle Mexican Grill, Inc. (CMG) – This operator of fresh, casual Mexican restaurants is currently trading near $315.48, which is toward the higher end of its 52-week range of $178.09 to $346.78. It does not pay a dividend. Earnings per share is $6.05, and price to earnings ratio is 52.15. Market capitalization is $9.89 billion.

Second quarter results announced in July were strong. Revenue increased 22.4 percent to $571.6 million. Net income rose to $50.7 million from $46.5 million for the same period last year. Costs were up 80 basis points over the same period last year, which management attributed to an increase in stock-based compensation and higher legal costs. The company opened 39 new restaurants and now boasts a total of 1,131. It opened 12 in the first quarter 2011 and 22 in the same quarter last year. Third quarter results are due out on Oct. 20.

Panera Bread Company (PNRA), another health-branded bakery/eatery, is currently trading near $111, which is in the middle of its 52-week range of $88.75 to $133.43. It does not pay a dividend. Earnings per share is $4.22, and price to earnings ratio is 26.43. Market capitalization is $3.33 billion. PNRA reported second quarter revenue of $451 million, which is up 19 percent over the same quarter last year. The company also showed improved operating margin of about 50 basis points over the same period last year. A total of 28 new bakery/cafes opened in the second quarter, which is up from 19 in the first quarter 2011 and 13 during the second quarter 2010. There are 1,493 total bakery-cafes in operation. Third quarter results will be released next week.

The CMG brand is fresh, healthy, sustainable and ethical. The food is good. The company is growing. The stock is high, though, and requires a significant outlay of cash to make a purchase. While I am taking a wait-and-see stance with CMG, I am looking forward to my next meal at Chipotle Mexican Grill and my next loaf of Panera bread.

Travelzoo Inc. (TZOO) – This online publisher of travel and entertainment deals through its network of websites is currently trading near $29, which is at the low end of its 52-week range of $20.68 to $103.80. It does not pay a dividend. It is showing a loss per share of $0.10. Market capitalization is $481.98 million. Second quarter results showed a 34 percent increase year-over-year in revenue or $37.6 million. Operating profit of $7.6 million was up 29 percent over the same period 2010. The company’s $4.9 million in net income was up 51 percent over the same period last year. Management said the second quarter 2011 produced the fastest growth rate in four years. Investments in television advertising, the addition of 27 new “Local Deals” markets and an increased its subscriber base point to continued growth.

Its larger competitor Expedia Inc. (EXPE) is currently trading near $28 and has ranged from $19.61 to $32.89 over the past year. Its dividend yield is 1 percent or $0.28. Earnings per share is $1.56, and price to earnings ratio is 18.02. Market capitalization is $7.7 billion. Second quarter earnings showed an increase in revenue of 23 percent to $1.02 billion, up from $834 million for the same quarter 2010. Cost of revenue also increased the second quarter by 18 percent. Adjusted net income increased by $26 million over the same period last year.

TZOO launched a new iPhone application in celebration of its fifth anniversary. In August, management announced the authorization of the repurchase of up to 500,000 shares.

I like where this stock has been. I like management’s focus on growth. Third quarter results are due out next week, and I expect to see continued growth. For investors who are willing to take a chance, a small purchase at today’s price could prove gainful in the medium to longer term, particularly for those who dollar-cost average. Should TZOO’s third quarter results fall short of expectations, an opportunity to buy more shares could arise.

priceline.com Incorporated (PCLN) – This online hotel airline reservation provider is currently trading near $491. Over the past 52 weeks it has ranged from $337.47 to $561.88. It does not pay a dividend. Earnings per share is $14.10, and price to earnings ratio is 34.83. Market capitalization is $24.45 billion. The company reported gross bookings or total sales of $5.8 billion for the second quarter. Revenues were $1.1 billion or 44 percent higher than the same period last year. Gross profit increased 68 percent to $749.2 million. Management expects total sales to increase by 47 to 52 percent, year over year, revenue to increase 37 to 42 percent, year over year, and gross profit to increase by 54 to 59 percent year over year in the coming quarter.

Orbits Worldwide, Inc. (OWW) is currently trading near $1.88. It has ranged between $1.57 and $7.01. It does not pay a dividend. It shows a loss per share of $0,62. Market capitalization is $194.3 million. Gross bookings totaled $3 million for the quarter ended June 30, which was down slightly from $3.1 billion for the same period last year. Net revenue increased four percent to $201.8 million, and cost of revenue increased four percent from $34 million to $35.5 million.

Reports are beginning to circulate that airfares may be higher throughout the holiday travel season, thanks to airlines reducing flights earlier this year. Analysts like this stock, with most recommendations ranging from “Strong Buy” to “Buy.” It is awfully high, though Again, because of its high price, investors who purchase now with an outlay of cash necessary to obtain a meaningful holding have a lot more to lose than those who invest in a lower priced stock.
If I want to know how much money is flowing through this company as compared to its price, I might look at its price to cash flow ratio. The closer the ratio gets to that magical "100" the less capability a company has. "100" means it can just pay its bills because the value of the company is equal to the amount of money coming in and no more. The industry stands at 19.10 while SO is less than half of that coming in at 8.80. We have an abundance of upside potential compared to the industry as a whole.

While the Electric Industry as a whole might be losing favor with analysts, we see Southern Company as a rock solid long term investment. Not only are they consistently bullish but they have a solid dividend program that continues to grow. This company should be in your portfolio if you are looking for long term growth investments or investing in a company for dividend income.

All figures are taken from: (MSN Money)

 Red Hat compared with a variety of competitors providing operating systems, middleware and/or virtualization solutions, along with two subscription-based, software-as-a-service vendors, Symantec and Ariba.

	Red Hat	Microsoft	Oracle	VMware	Citrix	Symantec	Ariba
Ticker	RHT	MSFT	ORCL	VMW	CTXS	SYMC	ARBA
Price (1/20/12)	$46.32	$29.67	$28.60	$87.68	$67.95	$16.77	$29.13
Market Cap	$8.95 b	$248.7 b	$143.7 b	$37.1b	$12.7 b	$12.4 b	$2.73b
LTM Revs	$1.08 b	$71.1 b	$36.7 b	$3.54 b	$2.12 b	$6.61 b	$443.9 m
Op CF Margins	33.2%	38.4%	35.8%	52.8%	32.5%	29.7%	17.1%
MRQ Rev Growth	23.1%	7.3%	2.4%	31.9%	19.7%	13.6%	44.6%
Forward P:E	40.3	9.83	11.2	34.9	24.8	8.84	25.6
EV: Revs	7.63	2.72	3.47	9.47	5.75	1.81	5.69
Float: Shares Out	0.994	0.898	0.779	0.183	0.995	0.996	0.987
Source:	Yahoo Finance		LTM=Last 12 months, CF=Cash Flow, MRQ=Most Recent Quarter

We had two takeaways from this data:

• Red Hat has the highest forward price:earnings ratio among this group, but it seems proportional to its growth rate. (Note that Ariba’s higher revenue growth rate includes an acquisition made in 2011);
• VMware stands out for its very large cash flow margins and revenue growth. It also commands a premium multiple (though its P:E is not as high as Red Hat’s), probably owing to its 85% market share in virtualization

Company (Ticker)	Lump-Sum Investment	Lump-Sum Price (Shares)	DCA Investment	DCA Price (Shares)
American Electric Power (AEP)	$6,000	$39.70 (151.1)	$500	$39.70 (12.6)
HCP, Inc. (HCP)	$6,000	$39.35 (152.5)	$500	$39.35 (12.7)
Rogers Communications (RCI)	$6,000	$36.91 (162.6)	$500	$36.91 (13.5)
Verizon Communications (VZ)	$6,000	$39.04 (153.7)	$500	$39.04 (12.8)

Status, At The Close, January 19, 2012

Ticker	Lump-Sum Investment	Lump-Sum Current Shares/Price	Lump-Sum % Change
AEP	$6,000	151.1/$41.10	3.5%
HCP	$6,000	152.5/$41.38	5.2%
RCI	$6,000	162.6/$38.88	5.3%
VZ	$6,000	153.7/$39.00	-0.1%
TWX	$7,454	200.0/$37.73	1.2%

Ticker	DCA Investment #2*	DCA #2 Price/Shares	DCA Cumulative Shares/Cost Basis	DCA % Change
AEP	$500	$41.10/12.2	24.8/$40.40	1.7%
HCP	$500	$41.38/12.1	24.8/$40.37	2.5%
RCI	$500	$38.88/12.9	26.4/$37.90	2.6%
VZ	$500	$39.00/12.8	25.6/$39.02	-0.5%
TWX	$621 (*DCA #1)	$37.73/16.5	16.5/$37.73	XXX

Ticker	Shares	Cost Basis	Price, Close 1/19/12	% Change
CMLS	500	$3.76 (Stop: $3.00)	$3.89	3.5%
SIRI	380	$2.14 (Stop: $1.95)	$2.15	0.5%

Penny stocks are stocks that trade under $5.00 and trade on the NASDAQ, AMEX, or OTCBB and PINKSHEETS. These stocks are highly volatile and therefore are considered risky. However, with significant interest, we have seen penny stocks quadruple or even gone as high as 10X. Examples of penny stocks that have gone this crazy are JAZZ, HGSI, and DNDN.

Penny stocks are very sensitive to news and events as it pertains to the company. When a company releases news that is deemed significant or groundbreaking, it is typical for traders to step in and buy the stock, and hold it for forward looking events that will keep the price up or keep interest in the stock.


initial investment of just $5,000 and what the gains would've been if you would have purchased the stock during its micro-cap days.

Company	Ticker	Date Purchase	Purchase Price	Market Cap	Today's Price	Return
Green Mountain Coffee	(GMCR)	Sep. 2002	$0.98	$151.5 million	$45.31	$231,000
Select Comfort	(SCSS)	Dec. 2008	$0.19	$10.67 million	$22.04	$580,000
Hansen Natural	(HANS)	Mar. 2003	$0.49	$42.66 million	$95	$970,000
Questcor Pharm	(QCOR)	Aug. 2007	$0.35	$21.96 million	$43.39	$620,000

Evcarco Inc (OTC:EVCA) no change during last trading session to close at $0.0006 with the trading volume of 61.82 million shares.
SavWatt USA Inc (OTC:SAVW) went up 18.18% to close at $0.0013 with the trading volume of 37.86 million shares.

IDO Security, Inc. (OTC:IDOI) no change during last trading session to close at $0.0001 with the trading volume of 35.30 million shares.

NaturalNano, Inc. (OTC:NNAN) went down 5.56% to close at $0.0017 with the trading volume of 18.29 million shares.

Attitude Drinks Incorporated (OTC:ATTD) went down 34.21% to close at $0.0025 with the trading volume of 15.17 million shares.

Silverado Gold Mines Ltd. (USA) (OTC:SLGLF) went down 5.00% to close at $0.002 with the trading volume of 1.12 million shares.
Evcarco Inc (OTC:EVCA) went up 33.33% to close at $0.0003 with the trading volume of 9.99 million shares.

Far East Energy Corporation (OTC:FEEC) went up 25.00% to close at $0.2 with the trading volume of 1.88 million shares.

Drinks Americas Holdings, Ltd. (OTC:DKAM) went up 4.35% to close at $0.0023 with the trading volume of 5.38 million shares.

Kiwibox.com Inc (OTC:KIWB) went down 6.67% to close at $0.045 with the trading volume of 6.04 million shares.


Thoughts ?

Jim Cramer's Lightning Round stock picks & Mad Money Fund Hot Stocks to Buy !

Lightning Round session of Jim Cramer's Mad Money TV Program, Friday, January 20.

Bullish Calls:

American Tower (AMT): "I like that stock so much. I've always been behind it... that is just one smoking good company."
Freeport McMoRan (FCX): "I like Freeport (better than Alcoa)."
American Express (AXP): "If you want to go with travel, I'd go with AXP... it was a really good quarter. The stock is down $1. I'd buy that one."
Trimble Navigation (TRMB): "That is a good company."

Bearish Calls:

Alcoa (AA): "Not a lot of upside...but if the world economy comes back...I'll buy Alcoa."
Ctrip.com (CTRP): "Way too risky."
Sprint (S): "Listen, the bonds are okay. I don't like the common stock. It's not going higher. They need too much money."

17 Things To Watch This Week: Haliburton (HAL), Texas Instruments (TXN), Dupont (DD), Kimberly Clark (KMB), McDonald's (MCD), Apple (AAPL), Conoco-Phillips (COP), Abbott Labs (ABT), Boeing (BA), Occidental Petroleum (OXP), Caterpillar (CAT), Nucor (NUE), 3M (MMM), Starbucks (SBUX), Honeywell (HON), Altria (MO), Procter&Gamble (PG) other stocks mentioned: American Express (AXP), Canon (CAJ), Schlumberger (SLB)

Monday

Haliburton (HAL) has disappointed in the past, and Cramer thinks it will be in danger of disappointing again, because it is too levered to natural gas. In spite of Schlumberger's (SLB) strong quarter, the oil and gas sector might suffer if HAL fails to deliver.

Texas Instruments (TXN) has become a darling of the new cycle in semis, but the stock has moved too much ahead of the quarter. Cramer would beware of holding semi stocks into TXN's report.

Tuesday

Dupont (DD) may be headed for a fantastic 2012 since what was ailing Dupont - autos and housing - is now turning around.

Kimberly Clark (KMB) could sell off because it is high, but it has a strong dividend so is worth buying low.

McDonald's (MCD) has the same issue as KMB; it might drop after a steady rise but is a buy on a decline.

Apple (AAPL) has run up ahead of the quarter on its groundbreaking news about its move into the textbook space and its iPhone 4, but Cramer thinks the company will report a blowout quarter. Since its last earnings were disappointing, some analysts have conservative estimates. Cramer says he can't recall seeing a company perform as well as Apple has in the last 30 days, and he is confident that the stock will deliver

Top stocks to buy now ! ( Mad Money Fund Picks )

Chimera Investment Corp. (CIM) is a diversified REIT with a $2.86 billion market cap. It pays a 15.83% dividend yield. The company's EPS grew 12.76% per annum over the last five years and is expected to increase by 2.75% per annum over the next five. CIM has a long term debt to equity ratio of 0.59 and has returned 10.76% year-to-date. It recently traded at $2.78 a share.

Frontier Communications Corp. (FTR) is a domestic telecom services company with a $4.93 billion market cap. It pays a 15.15% dividend yield. The company's EPS -16.13% per annum over the last five years and is expected to increase by 6.07% per annum over the next five. FTR has a long term debt to equity ratio of 1.71 and has returned -3.88% year-to-date. It recently traded at $4.95 a share.

Quicksilver Resources Inc

Specializing in the exploration, production and sale of natural gas and oil in the United States and Canada, Texas-based Quicksilver Resources Inc. has nearly 25 years of experience in the energy sector. The company has a market cap of $938.16 million, and is currently trading near the bottom of its 52-week range of $5.48 to $15.98. Now around $5.50, the company is expecting a share price increase this year, with its one-year target of $8.75 representing an increase of nearly 60%.

Although some indicators (such as its levered free cash flow of -441.01 million) point to Quicksilver as a questionable investment, a number of analysts are starting to see the potential of this small-cap. With several new properties to develop, interest in KWK is rising, with trade volume increasing by 10% over the past 10 days. The Quicksilver share price has pushed below its Price/Book valuation and is trading well below its moving averages, leading many to believe it is getting ready to climb.

Southwestern Energy Co

Southwestern Energy is another company that looks prepared for a breakout. This $10.31 billion Texas company specializes on oil and natural gas reserves in the United States. At $29.68, the company is trading near the bottom of its $28.72 to $49.25 range, although it is aiming at a one-year estimate target of $41.54. Like Quicksilver, SWN is trading below both its 50-day ($33.81) and its 200-day ($38.27) moving averages.

At -532.31 million in levered free cash flow, the company is stretched thin, but back itself up with a return on assets of 10.10% and a return on equity of 19.38%. The company's trailing P/E of 16.49 and its forward P/E of 16.13 are virtually identical, suggesting stability going forward. In spite of the projections, it is difficult to get behind a cash-tight oil & gas when there is an overabundance of natural gas reserves. Holding on any existing positions is probably best at the moment, as investors wait to see if the share price can resume itself and start climbing again.

Anadarko Petroleum Corp

Anadarko Petroleum is another oil & gas company that has been on a wild ride. Trading within a huge 52-week range, ($57.11 to $85.50) this $39.96 billion market cap company from The Woodlands, TX appears poised to take another big leap this year and blow past its $85.50 high. Possessing very solid numbers, this appears to be an excellent time to consider taking a position in APC.

Anadarko stock surged past both its 50-day and 200-day moving averages, making a share price increase from its current $80 range toward its one-year target of $100.15 seem believable. With market stability in the Middle East a concern due to the nuclear conflict with Iran, reports of oil abundance in the United States could help increase demand for domestic crude. With a hefty forward P/E of 23.67, picking up some shares of APC at its current range would likely be a very smart move.

Sirius XM (SIRI)

As frustrated as investors may feel regarding the stock, the reality is, for the week Sirius was only down 4 cents after it closed down 6 cents on Friday on average volume. Investors decided that it was time to take some profits and I think this is understandable considering the run that it has been on since its $1.82 close at the end of the year. It has been suggested to me that I follow the stock either too closely or too much on account of my recent article that asks investors to consider that (just maybe) the current good news has already been priced in. Being a trader's haven that Sirius is known to be, I felt it was appropriate to look at things from a trader's perspective.

Those that have been reading my articles over the past year know how I feel about the company as well as my ability to distinguish between its performance and that of the stock. That is to say, they are not the same. The fundamentals of the company are indeed improving, but the stock is still a money making vehicle and something that I encourage all investors to appreciate. My stance on this will not change nor will my demands of the stock to perform in accordance to the company's execution. Until then, there are still premiums to be made on the ups and downs - as have been the case for several years. But somehow, (to some) it has become offensive to discuss that which is already known. Get real!

Cisco (CSCO)

For the week Cisco gained 4.5% to reach a price of $19.92 on approximately 200 million shares traded. The stock just missed hitting the $20 mark for the first time in almost one year. As hard as I have been on the company, I continue to marvel at what a fantastic job that management, specifically John Chambers, has done with getting things back on track. The company is on strong fundamental standing. With a P/E of 10, it seems the Street is not expecting a whole lot of growth from the company. On Thursday, I talked about why I think the stock is to $30 ? and I feel that this is a very realistic target.

The fact of the matter is, when you consider the company's existing cash positions and even some conservative assumptions of 5% - 7% free cash flow that is compounded annually, you can see that the $30 projections were not too farfetched after all. The summer doldrums and $13 price that the company experienced was a wake-up call to management that there were some execution flaws that needed to be corrected. By both the company as well as the stock's performance of late, management has shown that it is awake and alert at the wheel and will continue to steer Cisco back toward prominence.


Hatteras Financial Corp. (HTS) is a REIT with a $2.08 billion market cap. It pays a 13.28% dividend yield. The company's EPS grew 5.72% per annum over the last five years. HTS has a long term debt to equity ratio of 0.00 and has returned 2.81% year-to-date. It recently traded at $27.11 a share.

Thoughts ?

Buy Sirius XM or Pandora ? Sirius XM Radio (Nasdaq: SIRI ) and Pandora Media (NYSE: P )

Music slingers Sirius XM Radio (Nasdaq: SIRI ) and Pandora Media (NYSE: P ) are both pretty hot right now. Pandora's fresh off its June IPO, and Sirius XM has been pumping out good news ever since it re-signed Howard Stern.




In the darkest hour of 2009, Sirius XM traded for just a nickel. A year later, it was up quite a bit but still struggling to get above the $1 share price that would keep it listed on Nasdaq. Now, at more than $2 a share, it's one of the most-traded stocks on the market.



Both Sirius XM and Pandora offer great music services (I use both and still own some shares of Sirius XM), but which one is the better stock bet?



The businesses

There's no question that each music service is popular. Sirius XM has more than 20 million paying subscribers, which is comparable with the body counts of Netflix and DirecTV. Meanwhile, Pandora boasts a staggering 90 million registered users.



But it's the monetization of these subs and users that matters for us investors. Because Pandora is mostly an ad-supported service, it's made only $167 million in sales over the past year. Sirius XM has done better, generating $2.9 billion. Believe it or not, that beats Netflix's top line. But all of these services pale in comparison with DirecTV's $24.8 billion.



Not surprisingly, Pandora's not profitable and Sirius XM is only becoming so, as it's been improving its cost structure after the 2008 merger between Sirius and XM.

Sirius TTR1 Tabletop Internet Radio (Black)

Bottom line: It's much harder to get people to pay for music than it is something like cable TV. And the competition for each is only getting tougher.



The competition

In the music-delivery space, the competition is fierce. Sirius XM's satellite-radio offerings and Pandora's Internet radio offerings, though somewhat complementary, compete with each other for ears. Terrestrial radio (i.e., FM and AM stations) is still around. Other streaming services such as RealNetworks' (Nasdaq: RNWK ) Rhapsody are in the mix, too, as is Apple's (Nasdaq: AAPL ) iTunes, now beefed up with free online storage on the iCloud. Amazon.com (Nasdaq: AMZN ) and Google (Nasdaq: GOOG ) have also rolled out online storage solutions. And the vague looming threat of Facebook lingers in the air. We could go on.



All this is to say that projections for the future are tough. So financial flexibility and valuation are especially important.



Financial flexibility and valuation

Coming off its IPO, Pandora has a net cash position. Sirius XM, on the other hand, still has a $2.7 billion net debt load, but that's down from $3.4 billion a year ago.



Of course, Sirius' newfound profitability helps increase financial flexibility.



In terms of valuation, P/E ratios aren't especially impressive. Yes, Sirius is profitable, but its trailing P/E ratio is in the triple digits. Meanwhile, Pandora sells for 18 times sales.
First, while Pandora is indeed, music, Sirius is music, news channels, talk, major city road conditions, comedy, and more. Go to Sirius.com to see their channel line up.




Second, while Pandora controls the intellectual property and infrastructure that allows music to be queued to you, it doesn't own or control the transmission infrastructure; and is dependent on compatible apps installed on smart phones, computers and so on. It's also dependent on subscribers' data subscription plans. In other words, there are multiple players involved in the end to end link. Sirius' major revenue source, on the other hand, is based on infrastructure and intellectual property owned or controlled along the entire pathway from studio to receiver; and is not dependent on others to enable subscriber access to content. This gives Sirius the ability to manage/adapt/enhance offerings in a way that Pandora can't.



Thirdly, Sirius has mutually beneficial agreements with all the major auto manufacturers; Pandora is only marginally integrated into one or two auto lines.



Fourth, as you have noted, Sirius is making money, paying down debt, increasing free cash flow, and on a net basis, increasing paying subscribers. Can't say that about Pandora; nor can I see, given Pandora's revenue model, any pathway to profitabiity. These are reasons why Pandora's initial analyst recommendation was sell with a price point of $5; and Sirius analysts have increasingly issued buy recommendations.



Fifth: There appears to be a significant demographic difference between between the two communities of subscribers; Pandora's being younger (and perhaps, presumably with less discretionary income); and Sirius' older with presumably greater discretionary income.



Sixth: The methods of counting subscribers is wholly different. While there is much more to it, the simplified version is that Pandora counts somebody who logged in and listened to music sometime in the last 60 days as a subscriber. Sirius counts a subscriber as somebody who has paid for an account.



Seventh: Liberty Media owns convertable preferred stock worth about 40% of Sirius. The possibilities of content and other integration between Sirius and Liberty are significant.



There's more, and I know that no matter what might be said, there will be those who will disagree. The point, though, is that the two companies are not two sides of the same coin.






Better bet: Sirius XM or Pandora?

If the road ahead seems tough for both Sirius XM and Pandora, that's because it is. They have to fight in a difficult space for consumers who don't like paying for their tunes while trying to stave off content providers that do like getting paid.



Meanwhile, as investors, we're not getting any discounts for these difficulties. At these valuations, it's hard to make a bull case for either. But between the two, I think Sirius XM is the better bet because of its subscription model, the possibility of rate increases not far down the road, and the prospect of Sirius 2.0
both of these companies will face a challenge in the upcoming months but as Sirius is put in front of more and more used car buyers i think they will reap the rewards of new subscribers. I am not sure a rate hike is going to be all that successful unless they implement it on new customers and allow old ones to stay at their current rates. I would think about dropping the service if they raised it to around $150 a year.


Now, SIRI EV/Sales = 16.8B / 2.9 = 5.79 multiple.




Compare that with Pandora at 18 multiple and you tell me if Sirius still looks "in the triple" digits with you fuzzy math. Siriusly, you can fool ppl who are not skilled in finance and M&A, but you look like a fool (no pun intended) to ppl who do know how to value a firm. SiriusXM is a $3 stock by the end of this year.

This is one place where I see Sirius having a big advantage. It has great original programming, whether it's Stern, sports talk, or B.B. King's weekly show on the blues channel, it's stuff you cannot get anywhere else.




I sold out of my SIRI position a while back, but I still love the service. Best $10 I spend every month.







My prediction is you will see the stock price for SIRI go up to around 2.60 prior to conference call on Aug 8. The downside to this stock increase is that unless the call announces some unexpected positive news the stock will sell off back to the 2.20's. I cant wait for Siri 2.0 and hope it is all that the company has let the public make it out to be.



I am long SIRI

SiriusXM Reports ( SIRI ) First Quarter 2011 Results , Top 2011 buy ?

SiriusXM Reports First Quarter 2011 Results




Tuesday , May 03, 2011 07:00ET
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NEW YORK, May 3, 2011 /PRNewswire/ -- Sirius XM Radio (NASDAQ: SIRI) today announced first quarter 2011 results, including revenue of $724 million, up 9% over first quarter 2010 revenue of $664 million, and adjusted EBITDA of $181 million, up 15% from $158 million in the first quarter of 2010.









"SiriusXM's first quarter results have put us on track to attain our full year goals for subscriber, revenue, and adjusted EBITDA growth. Significantly, we are now in a position to raise our free cash flow estimate for the year," said Mel Karmazin, Chief Executive Officer, SiriusXM. "Consumers are buying cars again and demand for our product is strong. Were it not for the OEM supply chain uncertainty resulting from the tragedy in Japan, we would be in a position to raise our subscriber guidance today."





Other highlights from the quarter include:





-- Subscriber growth accelerates. Strong auto sales drove net subscriber

additions in the first quarter of 2011 to 373,064, up 118% from 171,441

in the first quarter of 2010. Ending subscribers as of March 31, 2011

were 20,564,028, up 9% from the 18,944,199 subscribers reported as of

March 31, 2010.

-- SAC improves. Subscriber acquisition cost (SAC) per gross subscriber

addition was $57 in the first quarter of 2011, a 3% improvement from the

$59 reported in the first quarter of 2010.

-- Churn stable. Average self-pay monthly customer churn was 2.0% in the

first quarter 2011, in-line with the first quarter 2010 monthly average

of 2.0%.





"We operate in a highly competitive audio entertainment marketplace, where there are more choices than ever before, yet consumers continue to choose SiriusXM. We continue to invest in content, expand distribution and improve our technology to deliver the most compelling value proposition possible to consumers across the country," Karmazin added.





Free cash flow in the first quarter of 2011 was ($17) million, a $110 million improvement from the ($127) million recorded in the first quarter 2010. These improvements were driven by declines in satellite capital expenditures and improved adjusted EBITDA. Net income in the first quarters of 2011 and 2010 was $78 million and $42 million, respectively, or $0.01 per diluted share in each period.





"We ended the first quarter with $434 million of cash and cash equivalents after deploying approximately $135 million to repurchase debt. In April, we repurchased approximately $74 million of our 3.25% Convertible Notes due 2011 via a cash tender offer," said David Frear, SiriusXM's Executive Vice President and Chief Financial Officer. "We continue to make progress toward reaching our leverage target. Our net debt to adjusted EBITDA declined to 4.1x at the end of the first quarter of 2011 from 6.6x at the end of the first quarter of 2010."





The discussion of adjusted EBITDA excludes the effects of stock-based compensation and certain purchase price accounting adjustments. A reconciliation of non-GAAP items to their nearest GAAP equivalent is contained in the financial supplements included with this release.





2011 GUIDANCE





In 2011, we continue to expect full-year revenue of approximately $3 billion. Our adjusted EBITDA projection remains at approximately $715 million. Full year self-pay churn and conversion rates for 2011 should be broadly similar to those seen in 2010, and we continue to expect to grow our net new subscribers by 1.4 million in 2011. Free cash flow in 2011 should approach $350 million as compared to previous guidance for free cash flow approaching $300 million.





FIRST QUARTER 2011 RESULTS





Subscriber Data.





The following table contains actual subscriber data for the three months ended March 31, 2011 and 2010, respectively:







Unaudited --------- For the Three Months Ended March 31, ------------------------------------ 2011 2010 ---- ---- Beginning subscribers 20,190,964 18,772,758 Gross subscriber additions 2,052,367 1,720,848 Deactivated subscribers (1,679,303) (1,549,407) Net additions 373,064 171,441 ------- ------- Ending subscribers 20,564,028 18,944,199 ========== ========== Self-pay 16,807,643 15,773,671 Paid promotional 3,756,385 3,170,528 Ending subscribers 20,564,028 18,944,199 ========== ========== Self-pay 120,844 69,739 Paid promotional 252,220 101,702 Net additions 373,064 171,441 ======= ======= Daily weighted average number of subscribers 20,233,144 18,783,263 ========== ========== Average self-pay monthly churn (1) 2.0% 2.0% === === Conversion rate (2) 44.7% 45.2% ==== ====

____________



See accompanying footnotes.





Subscribers. The improvement was due to the 19% increase in gross subscriber additions, primarily resulting from an increase in U.S. light vehicle sales, new vehicle penetration and returning activations.





Average Self-pay Monthly Churn. While churn remained flat, changes in vehicle ownership were offset by reductions in non-pay cancellation rates.





Conversion Rate. The decrease was primarily due to changing mix of sales among auto manufacturers.





Metrics.





The following table contains our key operating metrics based on our unaudited adjusted results of operations for the three months ended March 31, 2011 and 2010, respectively:







Unaudited Adjusted ------------------ For the Three Months Ended March 31, ------------------------------------ (in thousands, except for per subscriber amounts) 2011 2010 ---- ---- ARPU (3) $11.52 $11.48 SAC, per gross subscriber addition (4) $57 $59 Customer service and billing expenses, per average subscriber (5) $1.08 $0.99 Free cash flow (6) $(16,874) $(127,203) Adjusted total revenue (8) $727,561 $670,563 Adjusted EBITDA (7) $181,359 $157,757

____________



See accompanying footnotes.





ARPU increased by $0.04, primarily driven by an increase in sales of premium services, including "Best of" programming, data services and streaming and an increase in other revenue due to additional subscribers subject to the U.S. Music Royalty Fee, partially offset by an increase in subscriber retention programs and in the number of subscribers on promotional plans.





SAC, Per Gross Subscriber Addition, decreased primarily due to a 19% increase in gross subscribers, lower per radio subsidy rates for certain OEMs and growth in subscriber reactivations and royalties from radio manufacturers, partially offset by an increase in OEM production with factory-installed satellite radios compared to the three months ended March 31, 2010.





Customer Service and Billing Expenses, Per Average Subscriber, increased primarily due to higher call volume and handle time per call, an increase to bad debt expense driven by an alignment of policies and personnel costs, partially offset by lower general operating costs.





Free Cash Flow increased principally as a result of improvements in net cash provided by operating activities and decreases in capital expenditures. Net cash provided by operating activities increased $56 million to $18 million for the three months ended March 31, 2011, compared to the ($38 million) used in operations for the three months ended March 31, 2010. Capital expenditures for property and equipment for the three months ended March 31, 2011 decreased $64 million to $35 million, compared to $99 million for the three months ended March 31, 2010. The increase in net cash provided by operating activities was primarily the result of higher collections of amounts due from subscribers, the timing of interest payments on our debt, and the early repayment in the first quarter of 2010 of liabilities deferred in 2009 that were scheduled to be repaid, at 15% interest, in monthly installments from April 2010 through March 2011. The decrease in capital expenditures for the three months ended March 31, 2011 was primarily the result of decreased satellite construction and launch expenditures due to the launch in the fourth quarter of 2010 of our XM-5 satellite.





Adjusted Total Revenue. Set forth below are our adjusted total revenue for the three months ended March 31, 2011 and 2010, respectively. Our adjusted total revenue includes the recognition of deferred subscriber revenues acquired in the merger between SIRIUS and XM (the "Merger") that are not recognized in our results under purchase price accounting and the elimination of the benefit in earnings from deferred revenue associated with our investment in XM Canada acquired in the Merger.







Unaudited --------- For the Three Months Ended March 31, ------------------------------------ (in thousands) 2011 2010 ---- ---- Revenue: Subscriber revenue, including effects of rebates (GAAP) $622,437 $579,509 Advertising revenue, net of agency fees (GAAP) 16,558 14,527 Equipment revenue (GAAP) 15,867 14,283 Other revenue (GAAP) 68,977 55,465 Total revenue (GAAP) 723,839 663,784 Purchase price accounting adjustments: Subscriber revenue 1,909 4,966 Other revenue 1,813 1,813 Adjusted total revenue $727,561 $670,563======== ========







For the three months ended March 31, 2011, the increase in subscriber revenue was primarily attributable to a 8% increase in daily weighted average subscribers, an increase in sales of premium services, including "Best of" programming, data services and streaming. The increase in other revenue was driven by additional subscribers subject to the U.S. Music Royalty Fee and increased royalty revenue from Sirius Canada.





Adjusted EBITDA. EBITDA is defined as net income (loss) before interest and investment income (loss); interest expense, net of amounts capitalized; income tax expense and depreciation and amortization. Adjusted EBITDA removes the impact of other income and expense, losses on extinguishment of debt as well as certain other charges, such as, goodwill impairment; certain purchase price accounting adjustments and share-based payment expense.







Unaudited Adjusted ------------------ For the Three Months Ended March 31, ------------------------------------ (in thousands) 2011 2010 ---- ---- Total revenue $727,561 $670,563 Operating expenses: Revenue share and royalties 136,862 123,539 Programming and content 83,273 90,471 Customer service and billing 65,487 55,577 Satellite and transmission 18,232 19,389 Cost of equipment 6,405 7,919 Subscriber acquisition costs 126,926 107,045 Sales and marketing 49,156 49,942 Engineering, design and development 10,024 9,826 General and administrative 49,837 49,098 Total operating expenses 546,202 512,806 ------- ------- Adjusted EBITDA $181,359 $157,757 ======== ========

For the three months ended March 31, 2011, the increase in adjusted EBITDA was primarily due to an increase of 9%, or $57 million, in adjusted revenues, partially offset by an increase of 7%, or $33 million, in expenses included in adjusted EBITDA. The increase in revenue was primarily due to the increase in our subscriber base and by additional subscribers subject to the U.S. Music Royalty Fee. The increase in expenses was primarily driven by higher subscriber acquisition costs related to the 19% increase in gross additions, higher revenue share and royalties expenses associated with growth in revenues subject to revenue sharing and royalty arrangements, and increased customer service and billing expenses associated with subscriber growth, partially offset by lower programming and content costs.

stocks that will soar higher ?

Shares of Sirius XM Radio (Nasdaq: SIRI ) have been a bit of a heartbreaker since hitting a two-year high of $1.88 on Valentine's Day.




The satellite radio giant posted a solid quarterly report the next day, but the momentum that seemed destined to take the stock to $2 -- and beyond -- fizzled. Wunderlich Securities downgraded the stock last week, lowering its target from $2 to $1.65.



So that's it? The party's over?
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Not really. There are several potential catalysts that could get shares of Sirius XM over the $2 hump for the first time since the summer of 2008. Let's go over a few of them. They don't all have to happen, but a few of these events in concert can only help.



1. Organic ARPU growth materializes

Sirius XM isn't growing as quickly as bulls might think. More than half of last year's 14% spike in revenue growth resulted from the $1.98 monthly music royalty fee that went into effect in the latter half of 2009. Take out the difference between the $234 million in royalties collected in 2010 and the $49 million it took in through all of 2009, and Sirius XM's revenue would have grown by a mere 6% last year.



Now that all three of the Sirius XM rate hikes incorporated in 2009 have been in the system for a year, CEO Mel Karmazin will have to earn further growth in average revenue per user (ARPU).

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Music royalties and a welcome uptick in ad revenue helped move monthly ARPU from $10.95 to $11.73 last year, but subscriber revenue per user grew by less than 1%.



Thankfully, this is a bullish article. There are several realistic ways for Sirius XM to milk more money out of its subscribers without alienating them.



•A regulator-mandated freeze on primary rates should expire this summer. In other words, Sirius XM will have the freedom to tweak its basic $12.95-a-month rate. It may not jump on this right away, especially if the NFL lockout diminishes the value of XM's gridiron deal, but at least the perceived flexibility is there. Netflix (Nasdaq: NFLX ) shares soared when it introduced its first rate hike in years back in November. Despite the fears of an uptick in churn, the same market reaction would likely greet Sirius XM.

•Streaming isn't a strong sell as a stand-alone offering at $12.95 a month, but it makes a lot more sense as a $2.99 add-on for receiver-based Sirius subscribers now that Howard Stern is available through the smartphone app. Stern's five-year extension should also help on the XM side in moving the "best of" monthly plans for $4.04 more.Motley Fool Personal Finance Workbook A Foolproof Guide to Organizing Your Cash & Building Wealth (2003 publication)

•Despite the obvious allure of Sirius XM's well-to-do audience of active commuters, advertising revenue slumped through the recession in 2008 and 2009. It bounced back nicely in 2010, and that growth should continue in an expanding economy in 2011. Advertising may never be a material driver for Sirius XM, given the magnetism of its commercial-free music channels, but it's one more way for ARPU to inch higher this year.

2. Sirius XM 2.0 is a hit

The next evolutionary step in satellite radio will hit the market during the fourth quarter.



We don't know everything about Sirius XM 2.0. The hints that have been dropped position the new receivers as more interactive, with broader programming options. Since older receivers are unlikely to play along, we may be looking at a healthy upgrade cycle on the automotive side, and the first uptick in years on the retail side.

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Sirius XM has to stay ahead of the pack, and that includes its partner automakers. Ford (NYSE: F ) is turning heads with MyFord Touch's seamless connectivity to audio entertainment for smartphone owners. Toyota (NYSE: TM ) introduced Entune this year, raising the bar with complimentary navigation through Microsoft's Bing and the ability to make restaurant reservations through OpenTable.



In short, Bluetooth-capable smartphones and innovative car companies are redefining the dashboard experience. Sirius XM can't be left behind, even if it has managed to post sequential subscriber growth for six straight quarters.


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Sirius XM 2.0 can be that game-changer, but it will have to markedly improve upon the ear candy that automakers are rolling out now. Car manufacturers are improving Web-based functionality in cars because drivers covet those high-tech features. But automakers also rely on Sirius XM for juicy bounties on activated subscriptions.



We'll know more as Sirius XM 2.0 details begin to bubble up over the next few months.



3. Raise the bar

Analysts are eyeing modest growth here. They see revenue climbing just 8% this year, and 10% come 2012. The pros see a profit of $0.03 a share in 2011 and $0.05 a share next year.



Given the slow growth outside of the 2009 rate hikes, these may seem like aggressive milestones. They're not. Auto sales -- the lifeblood of satellite radio -- are holding up well. Escalating fuel prices are driving new vehicle purchases. Ford just posted a 16% year-over-year spike in sales for the month of March. We'll eventually get to the point where drivers are simply swapping older cars with Sirius or XM receivers for similarly equipped new ones, but we're not there yet. For now, Sirius XM is at the mercy of new car sales, and that's not a bad place to be.



Sirius XM has already realized most of the merger synergies, but this remains a scalable model where net margins can continue to improve as long as incremental subscribers keep coming. It's hard to move the needle on the bottom line with 6.4 billion fully diluted shares outstanding, but what if Sirius XM can be more profitable than Wall Street is currently projecting?



Even if it's just a matter of earning $0.08 a share next year instead of the nickel being targeted, that would price Sirius XM at roughly 20 times next year's earnings. The stock's appeal would grow beyond its current base of investors and speculators. What happens at $0.10 a share? What happens at $0.12 a share?



We may be dabbling in the hypothetical, but a lot of the potential catalysts that I singled out earlier could deliver real improvement to Sirius XM as we know it.



The $2 price may not be as close as it was two months ago, but it's not out of reach, if things play out the way they should.



When do you think Sirius XM will hit $2? Share your thoughts in the comment box below,

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