Not Much Growth for the Money at Enable

Last month in Play Ball: More IPOs on Deck, I mentioned that the next master limited partnership to IPO could be Enable Midstream Partners (NYSE: ENBL). Enable Midstream was formed in May 2013 as a joint venture by affiliates of CenterPoint Energy (NYSE: CNP), OGE Energy (NYSE: OGE) and ArcLight Capital Partners.

The partnership had filed its S-1 with the Securities and Exchange Commission (SEC) back in November, and just missed its targeted IPO date in the first quarter of 2014. The $500 million IPO was priced at a midpoint of $20 per unit on April 11, giving the partnership an initial market capitalization of $8.32 billion — the richest for an MLP IPO on record. Units actually opened at $21.50, and have since risen to $24.58.

Performance so far has been consistent with the advances enjoyed by most of the MLP IPOs over the past year. In fact a few of them made major advances. As discussed in last week's article No Letup for Last Year's Top IPO, the best performing MLP of the year so far is Phillips 66 Partners (NYSE: PSXP), which came public last summer and is up 48 percent year-to-date. Of course, there are some exceptions. Marlin Midstream Partners (Nasdaq: FISH) conducted its IPO three days after Phillips 66 Partners last year, and it has traded below its IPO price since.  

So in general most IPOs have traded higher over the past year, but what about Enable's fundamentals? Enable Midstream is one of the largest midstream partnerships in the US, with assets that include 11,000 miles of gathering pipelines, 12 major processing plants with approximately 2.1 billion cubic feet per day (Bcf/d) of processing capacity, 7,900 miles of interstate pipelines, 2,300 miles of intrastate pipelines and eight storage facilities with a capacity of  86.5 Bcf.

Enable's natural gas gathering and processing assets are located in four states and serve natural gas production from unconventional shale resource plays in the Anadarko, Arkoma and Ark-La-Tex basins. Its natural gas transportation and storage assets extend from western Oklahoma and the Texas Panhandle to Alabama and from Louisiana to Illinois. The partnership also owns a growing crude oil gathering business in the Bakken shale formation of the Williston Basin that began initial operations in November.

In 2012 and 2013 on a pro forma basis, Enable grew the volume of gas processed on its systems by 61 percent. The partnership expects growth in the basins in which it operates to drive higher throughput and additional organic growth opportunities for it assets. Enable expects to grow distributable cash flow both through third-party acquisitions, and by developing new energy infrastructure projects to support new and existing customers as they expand beyond their current footprint.

For the year ended Dec. 31, on a pro forma basis, approximately 76 percent of Enable's gross margin was from fee-based contracts, and approximately 50 percent was attributable to firm contracts or contracts with minimum volume commitments.

Last year, Enable generated $1,322 million of gross margin, $779 million of Adjusted EBITDA and $454 million of net income. Pro forma distributable cash flow (DCF) was $541 million, sufficient to pay the minimum quarterly distribution of $0.2875 per unit per quarter. At the recent closing price of $24.58, the minimum annual distribution of $1.15 would result in a yield of 4.7 percent.  

The partnership estimates that pro forma DCF will total $550 million for the 12 months ending March 31, 2015. The relatively flat forecast is one of the negatives, at least in the short term. Some of the recent IPOs have managed to ramp up distributions pretty quickly, but if Enable's DCF over the next year is essentially what it was over the past year, investors aren't g! oing to r! eap the kind of capital appreciation delivered by PSXP, for example.

Thus, we are taking a wait-and-see approach with Enable. If it begins to make some reasonably-priced acquisitions to grow DCF, it may be one that we would add to a conservative portfolio.

The Investing Daily Summit

This week I will attend, and present at, Investing Daily's annual Investing Summit in Alexandria, Virginia. It is the one time each year that I will make a public presentation devoted entirely to energy investing. I will discuss my personal philosophies for creating long-term wealth, my core beliefs, and detail what I think is ahead for the energy sector this year and beyond.

5 Best Bank Stocks To Watch Right Now

My talk will be Future Currents: Where the Global Energy Sector will be Flowing, while my colleague Igor Greenwald will be covering MLPs in Inside the MLP Factory: The Makers and the Takers. We hope to see you there!

(Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)

Metabolon May Launch IPO in Next Couple of Months

Metabolon Inc., a medical technology firm that tests how diseases and drugs affect the body, is working on an initial public offering that could launch in the next couple of months, people familiar with the matter said.

The Durham, N.C.-based company is working with banks including Barclays PLC and Piper Jaffray Cos. on the IPO, the people familiar said.

The company is already confidentially filed for an IPO with the Securities and Exchange Commission under the JOBS Act and is aiming to make its filing public and potentially complete the deal in the next couple of months, the people added.

The IPO comes on the heels of an announcement the company made in March that it had partnered with Human Longevity Inc., started by genomics pioneer Craig Venter. Mr. Venter's new company plans to collect genetic data from thousands of people and use it to discover new treatments. Metabolon agreed to provide biochemical testing for Human Longevity. Mr. Venter serves as a scientific adviser to Metabolon.

Metabolon helps companies and researchers test how products or drugs affect the body's metabolism. It has also developed diagnostic tests for cancer and for obesity-related diseases, such as diabetes.

The company generated about $25 million in revenue last year, people familiar with the IPO planning said.

It is backed by roughly $50 million in private funding, including from Aurora Funds Inc., Fletcher Spaght Ventures LP, Syngenta Ventures, Sevin Rosen Funds, Harris & Harris Group Inc. and Keating Capital Inc.

The health-care IPO market got off to a sizzling start in 2014, with a record number of deals launching through mid-April, according to Dealogic. But the sector has been challenged of late, as many high-flying IPOs have had their gains peeled back in a sharp correction. Of the eight healthcare IPOs so far in April, only one did not trade below its IPO price at some point during its first day of trading, according to Syndicate Pro LLC, an IPO data and advisory service.

The JOBS Act, enacted in April 2012, grants certain perks to companies with less than $1 billion in revenue. They incude relaxed accounting standards and financial reporting rules, including a provision that allows companies to file their initial IPO paperwork confidentially.

Gas Prices Are Heading Up (and the Sector That Will Benefit)

The price of gasoline in the U.S. is on the rise again.

Futures prices for RBOB ("Reformulated Blendstock for Oxygenate Blending"), the NYMEX futures contract for gasoline, are up over 11% for the year, and a full 6.6% of that increase has come in the past month.

In fact, gas is up 2.4% over the past week alone. Today, the average retail price is 4 cents higher per gallon than a year ago.

And you can bet that as we move into the "official" start of the summer driving season, the worst is yet to come. Prices will be headed even higher.

So with all the hoopla surrounding our newfound oil wealth and our legitimate move to become energy self-sufficient in as little as a decade, why are gas prices still climbing?

Let me explain...

More Oil Doesn't Necessarily Mean Lower Prices

But first I need to clear the record about what this new largess in unconventional oil actually means. Then I'll identify the two primary causes of higher gas prices, along with a third catalyst that is waiting in the wings.

Now it is quite true that the main element in the cost of refined products remains the price of crude oil. However, the reason America became so dependent upon foreign imports in the first place is that they were cheaper.

It was simply less expensive to produce abroad and transport than it was to extract from the declining conventional oil base inside the U.S.

By the time we reached the point where 68% of our daily oil needs were being met by imports, U.S. domestic production was largely coming from mature fields in what was rapidly becoming one of the most expensive places in the world to extract oil.

At the time, more than 60% of all daily U.S. production was coming from stripper wells. On average, these wells provide fewer than 10 barrels of oil a day while bringing up 15 to 20 barrels of water for each barrel of the crude.

Shale and tight oil is now completely changing that dynamic, although there are indications the cost of production is beginning to move up. Nonetheless, the financial attraction of importing has appreciably declined (along with a welcome rise in the security of supply).

By 2025, the U.S. is now projected to have cut its daily import needs by more than half from the highpoint only a few years ago. Only about 30% of that requirement will need to be imported. Additionally, just about all of the volume sourced will be coming in from Canada.

So that should allow us to parlay the newfound subsurface wealth into lower overall refiner product prices, right?

Well, in a single word, no.

First, while one side of the trading scale (imports) may be declining, the other (exports) is rising... and fast. Today, American refineries are now leading the world in the export of oil products, especially when it comes to gasoline and diesel.

Now, it's true. We do have fewer refineries than we had 20 years ago, but the aggregate production capacity has actually improved thanks to technological advances and increases in refining capacity at the remaining plants.

These refineries are also processing a larger cut of crude passing through them, and in many cases have been refurbished to process heavier grades of crude. This latter point becomes especially important with the oil sands product moving down from Canada.

Refinery capacity is stretched but is still within manageable limits.

However, the profitable move these days is for refineries to export product to parts of the world prepared to pay a hefty premium over U.S. consumers. This is not creating any shortage of gasoline in the U.S., but it does put an upward pressure on prices.

And yes, some pundits are already calling for an "America first" strategy in this case, with the cost as the deciding factor. They are calling for a cut in exports of gasoline - not because we have a dearth of volume available domestically - but because it costs a few cents more a gallon at the pump. But attacks like this on a free market system will always result in remedies that are far worse than the disease.

Second, we are finally starting to see a rise in U.S. demand, matching increases already experienced elsewhere in the world. This global acceleration has been the main reason why exports have become more profitable for American refineries.

The demand improvement itself is a result of two primary factors.

One is an improving economy. The other is that the U.S. is now working through the last vestiges of downward pressures brought on by the recession. Finally, pent up industrial and commercial demand is kicking in, matching the steady improvement in retail consumer usage levels.

But this demand is still not close to the levels experienced before the credit crunch hit. That means there will be additional increases headed our way and further rounds of upward pressures on gasoline prices.

Biting the Bullet on Higher Gas Prices

So we are likely to be flirting with $4 a gallon gasoline again by midsummer. But this time, it's going to be different. Most Americans are going to bite the bullet and pay it.

The reason is simple: Employment prospects for most people have improved. That wasn't the case not too long ago.

In late 2008 and early 2009, the collapse in the price of gasoline was the result of a significant contraction in economic opportunity. Then, a guy could finally afford to put gas in his SUV, but he no longer had a job to drive to.

And what of that third lingering cause?

It's simple. The rise in domestic crude oil production is outstripping the ability of the infrastructure to store and process it.

That's why you shouldn't be surprised if the government begins to approve exports of the oil itself. Currently, that is essentially only allowed for the California heavy crude that does not have a sufficient domestic market.

But, as we have discussed previously, the use of tolling is likely to be phased in. This is the process of providing raw material (in this case crude oil) for processing elsewhere and then importing it back in as a processed product.

This is how the trading cycle, now centered on the export of oil products, will expand to include the export of oil itself. It is also how American refineries will cope with a double whammy -wanting to export but needing to satisfy an expanding domestic market. Refined products imported from one region will then figure in the export of the same products to others.

Refinery margins (the difference between the cost of production and the wholesale price; the actual source of refinery profits) will decide the direction of this trade flow.

In the end, this will support higher gas prices.

But it's not all bad news. It will also provide a better return for investors in the pivotal refining sector.

Amid Biotech Selloff, Celgene Gets an Upgrade, Gilead’s Nine-Day Win Streak Ends

Celgene (CELG) was on the receiving end of an upgrade today, but the upside has been limited as the biotech sector continues to sell off.

Shares of Celgene gained 0.6% to $142.06 today, even as Amgen (AMGN) dropped 2% to 111.41, Biogen (BIIB) fell 3.1% to $285.81 and the SPDR S&P Biotech ETF (XBI) declined 3.9% to $124.37, extending its losing streak to three days. Gilead Sciences (GILD) dipped 0.2% to $73.90, ending a nine-day winning streak

In a report titled “It’s Time…We Think,” Piper Jaffray’s Joshua Schimmer and team explain why they raised their rating on Celgene:

The biotech sector has cooled off significantly over the past couple of months. Even a crushing EPS beat by [Gilead] barely moved that stock. Growth in general has come under pressure, and we are cognizant that high-multiple stocks may struggle to perform. While [Celgene] can’t yet be considered a “value” stock trading at a 2014 P/E multiple of 20x, it’s 20%+ sustainable EPS CAGR means it will eventually either become a value stock or see multiple stabilization with share performance driven by organic EPS growth…

We believe the valuation now reflects a conservative 2024 Revlimid patent expiry and excludes meaningful contribution from the advancing pipeline. As such, we are less concerned with Revlimid’s May 15 Markman hearing outcome for the Revlimid polymorph patents since we believe a settlement somewhere between the method of use (2024) and polymorph (2027) dates is the most likely outcome regardless. Such a settlement could come this year and act as a potent catalyst to lift shares out of their doldrums.  [Celgene] is attuned to delivering shareholder value and we believe will fight aggressively to lift the Revlimid polymorph patent overhang and deliver sustainable EPS growth. We are upgrading from Neutral to OW…

At least the market noticed, even if the gain wasn’t much.

This post has been updated.

5 Stocks With Big Insider Buying

DELAFIELD, Wis. (Stockpickr) -- Corporate insiders sell their own companies' stock for a number of reasons.

>>5 Stocks Set to Soar on Bullish Earnings

They might need the cash for a big personal purchase such as a new house or yacht, or they might need the cash to fund a charity. Sometimes they sell as part of a planned selling program that they have put in place for diversification purposes, which allows them to sell stock in stages instead of selling all at one price.

Other times they sell because they think their stock is overvalued and the risk/reward is no longer attractive. Some even dump their own stock because they have inside knowledge that a competitor is eating their lunch and stealing market share.

But insiders usually buy their own shares for one reason: They think the stock is a bargain and has tremendous upside.

>>3 Big Stocks on Traders' Radars



The key word in that last statement is "think." Just because a corporate insider thinks his or her stock is going to trade higher, that doesn't mean it will play out that way. Insiders can have all the conviction in the world that their stock is a buy, but if the market doesn't agree with them, the stock could end up going nowhere. Also, I say "usually" because sometimes insiders are loaned money by the company to buy their own stock. Those loans are often sweetheart deals and shouldn't be viewed as organic insider buying.

At the end of the day, it's large institutional money managers running big mutual funds and hedge funds that drive stock prices, not insiders. That said, many of these savvy stock operators will follow insider buying activity when they agree with the insider that the stock is undervalued and has upside potential. This is why it's so important to always be monitoring insider activity, but it's twice as important to make sure the trend of the stock coincides with the insider buying.

>>5 Rocket Stocks to Buy This Week

Recently, a number of companies' corporate insiders have bought large amounts of stock. These insiders are finding some value in the market, which warrants a closer look at these stocks. Here's a look five stocks whose insiders have been doing some big buying per SEC filings.

Ruby Tuesday

One stock that insiders are jumping into here is Ruby Tuesday (RT), which owns and operates Ruby Tuesday, Lime Fresh Mexican, GrillMarlin & Ray's and Wok Hay casual dining restaurants. Insiders are buying this stock into notable strength, since shares are higher by 34% over the last three months.

Ruby Tuesday has a market cap of $456 million and an enterprise value of $658 million. This stock trades at a cheap valuation, with a price-to-sales of 0.39 and a price-to-book of 1.00. Its estimated growth rate for this year is -439.1%, and for next year it's pegged at 84.6%. This is not a cash-rich company, since the total cash position on its balance sheet is $44.47 million and its total debt is $266.87 million.

>>3 Stocks Under $10 Making Big Moves

A director just bought 50,000 shares, or about $342,000 worth of stock, at $6.85 per share.

From a technical perspective, RT is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last few weeks, with shares moving higher from its low of $5.17 to its recent high of $7.76 a share. During that uptrend, shares of RT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of RT within range of triggering a major breakout trade.

If you're bullish on RT, then I would look for long-biased trades as long as this stock is trending above its 200-day at $6.71 and then once breaks out above some near-term overhead resistance levels at $7.76 to $7.96 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 706,783 shares. If that breakout triggers soon, then RT will set up to re-fill some of its previous gap-down-day zone from July of 2013 that started near $9.50. If that gap gets filled with strong upside volume flows, then RT could easily trend well north of $10 a share.

Equinix

Another stock that insiders are active in here is Equinix (EQIX), which provides data center services to protect and connect the information assets for the enterprises, financial services companies, and content and network providers. Insiders are buying this stock into modest strength, since shares are up by 7.2% over the last six months.

>>3 Big Tech Stocks Getting Big Attention

Equinix has a market cap of $8.9 billion and an enterprise value of $12.3 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 95 and a forward price-to-earnings of 31. Its estimated growth rate for this year is 89.4%, and for next year it's pegged at 62%. This is not a cash-rich company, since the total cash position on its balance sheet is $631.70 million and its total debt is $4.16 billion.

A beneficial owner just bought 71,900 shares, or about $12.34 million worth of stock, at $171.70 per share.

From a technical perspective, EQIX is currently trending its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock recently started to spike back above its 200-day moving average with solid upside volume flows. That spike is now starting to push shares of EQIX within range of triggering a near-term breakout trade above some key overhead resistance levels.

If you're in the bull camp on EQIX, then I would look for long-biased trades as long as this stock is trending above its 200-day at $177.06 or above more key near-term support at $169.95 and then once it breaks out above some near-term overhead resistance levels at $183.73 to $186.42 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 955,098 shares. If that breakout gets underway soon, then EQIX will set up to re-test or possibly take out its next major overhead resistance levels at $194.99 to $196.20 a share. Any high-volume move above those levels will then give EQIX a chance to tag its next major overhead resistance level at $205.50 a share.

Sears Holdings

One retail department store player that insiders are loading up on here is Sears Holdings (SHLD), which operates as a retailer in the U.S. and Canada. Insiders are buying this stock into weakness, since shares are off by 25% over the last six months.

>>5 Hated Earnings Stocks You Should Love

Sears Holdings has a market cap of $4.4 billion and an enterprise value of $7.3 million. This stock trades at a reasonable valuation, with a price-to-sales of 0.12 and a price-to-book of 2.48. Its estimated growth rate for this year is 0.70%, and for next year it's pegged at 0.70%. This is not a cash-rich company, since the total cash position on its balance sheet is $1.03 billion and its total debt is $4.25 billion.

A director just bought 475,000 shares, or about $15.94 million worth of stock, at $33.56 per share.

From a technical perspective, SHLD is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently formed a double bottom chart pattern at $30.50 to $31.26 a share. Following that bottom, shares of SHLD have started to uptrend and move back above both its 50-day and 200-day moving averages. That move has now pushed shares of SHLD within range of triggering a near-term breakout trade.

If you're bullish on SHLD, then I would look for long-biased trades as long as this stock is trending above its 50-day at $36.43 and then once it breaks out above some near-term overhead resistance at $42.47 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 1.57 million shares. If that breakout hits soon, then SHLD will set up to re-test or possibly take out its next major overhead resistance levels at $52.50 to $54.50 a share.

Sears Hometown and Outlet Stores

Another stock that insiders are active in love with here is Sears Hometown and Outlet Stores (SHOS), which is engaged in the retail sale of home appliances, hardware, tools and lawn and garden equipment in the U.S. Insiders are buying this stock into notable weakness, since shares are down by 18.9% over the last six months.

>>3 Stocks Spiking on Big Volume

Sears Hometown and Outlet Stores has a market cap of $528 million and an enterprise value of $584 million. This stock trades at reasonable valuation, with a trailing price-to-earnings 15. This is not a cash-rich company, since the total cash position on its balance sheet is $23.48 million and its total debt is $99.86 million.

A beneficial owner just bought 173,574 shares, or about $3.57 million worth of stock, at $20.62 per share.

From a technical perspective, SHOS is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of $19.75 to its recent high of $24.63 a share. During that move, shares of SHOS have been making mostly higher lows and higher highs. That move has now pushed shares of SHOS within range of triggering a near-term breakout trade.

If you're bullish on SHOS, then I would look for long-biased trades as long as this stock is trending above some near-term support at $21 and then once it breaks out above its 50-day at $23.29 a share and once it clears more near-term overhead resistance levels at $25 to $26.31 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 168,010 shares. If that breakout materializes soon, then SHOS will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $29.27 to $32.50 a share.

Esterline Technologies

One final stock with some decent insider buying is Esterline Technologies (ESL), which designs, manufactures and markets engineered products and systems primarily for aerospace and defense customers in the U.S. and internationally. Insiders are buying this stock into big strength, since shares are up sharply by 37% over the last six months.

Esterline Technologies has a market cap of $3.4 billion and an enterprise value of $3.9 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 20 and a forward price-to-earnings of 16. Its estimated growth rate for this year is 0.90%, and for next year it's pegged at 14.6%. This is not a cash-rich company, since the total cash position on its balance sheet is $208.44 million and its total debt is $706.29 million.

A director just bought 8,778 shares, or about $907,000 worth of stock, at $103.36 per share.
From a technical perspective, ESL is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently formed a double bottom chart pattern at $102.47 to $101.63 a share. Following that bottom, shares of ESL have started to spike higher back above its 50-day moving average. That move is starting to push shares of ESL within range of triggering a major breakout trade.

If you're bullish on ESL, then look for long-biased trades as long as this stock is trending above those double bottom support levels and then once it breaks out above some near-term overhead resistance levels at $111.45 to its 52-week high of $113.06 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 222,378 shares. If that breakout starts soon, then ESL will set up to enter new 52-week-high territory above $113.06, which is bullish technical price action. Some possible upside targets off that move are $120 to $125 a share.

To see more stocks with notable insider buying, check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>A Small-Cap Stock With Very Big Potential

>>5 Stocks Under $10 Ready to Explode

>>Side-Step the Selling With These 5 Big Trades

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

What Does This Contract Win Mean for iRobot?

On Thursday, iRobot (NASDAQ: IRBT  ) announced it has been awarded a new four-year, $30 million indefinite delivery/indefinite quantity (IDIQ) contract by the U.S. Army's Robotic Systems. The contract, which replaces an expiring IDIQ, enables the delivery of PackBot FasTac robotic units and their respective spare parts.

To start, an initial $3 million order has already been placed under the contract for spares to be used with the Army's existing fleet of thousands of PackBot robots, which iRobot expects to deliver by the end of the fourth quarter.

iRobot Fasttac training, Image Source: Wikimedia Commons

Remember, this is the third such defense-related contract iRobot has won over the past few months, with previous announcements including a $14.4 million boost in March to provide an unspecified number of their throwable FirstLook robots to the military, and a $7.2 million win to provide 510 PackBot robots to the Brazilian government in May. 

The folks at iRobot, for their part, also took the opportunity to note that they've delivered more than 5,000 robots to military and civil defense forces around the globe so far. For those of you keeping track, that total includes more than 3,500 PackBots, despite stiff competition in the space from enormous defense stalwarts including Northrop Grumman (NYSE: NOC  ) .

Remember, in April, Northrop boasted of its own efforts of selling more than 2,000 unmanned ground vehicles to date, while simultaneously launching its CUTLASS unmanned ground vehicle in April. The CUTLASS, for reference, directly competes with larger systems like iRobot's Warrior bots.

As I suggested at the time, however, iRobot's Warrior weighs in at around half as much as the CUTLASS, can lift more weight with its arm fully extended, has a faster top speed, and can right itself when flipped thanks to its unique treaded design. In short, these kinds of technological advantages represent just a few reasons iRobot's portfolio of defense-centric products have such a wide lead over the competition to date.

Of course, the $20 billion Northrop Grumman also stays busy working in many other significant defense markets -- but regardless, it's still impressive the comparatively small $1.1 billion iRobot has managed to hold its own with the big boys.

Don't call it a comeback...
It's also important to remember iRobot's defense and security business struggled mightily last year in the face of uncertain defense budgets, and remained one of the primary reasons iRobot shareholders had to endure a nearly 35% drop in 2012.

Thankfully, however, iRobot intelligently scaled back its that segment, in the meantime choosing instead to focus on its thriving consumer business, through which it's most notably responsible for the wildly popular Roomba robotic vacuums. In fact, iRobot management stated last quarter they expect its consumer division to grow another 20% in 2013, by the end of which it should represent a whopping 90% of total sales.

That's why, given iRobot's diversification efforts away from unpredictable defense and security spending, any significant defense-related contract wins should only serve as icing on the cake for iRobot investors.

But iRobot hasn't been the only one to benefit from the government's recent spending spree. You see, two small-cap companies with long-term government deals are reaping the rewards... and securing some monstrous, guaranteed profits. While at the same time limiting any risk exposure they have. We outline how they're taking advantage in our special, 100% FREE report, "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Just click here to get instant access to the names of both companies, and start reaping the profits right alongside them!

10 Best Dow Dividend Stocks For 2014

10 Best Dow Dividend Stocks For 2014: Full Circle Capital Corporation (FULL)

Full Circle Capital Corporation is a business development company and operates as an externally managed non-diversified closed-end management investment company. It invests in debt and equity securities of smaller and lower middle-market companies with annual revenues between $3 million and $75 million. The company primarily invests in various categories of debt comprising asset-based senior secured loans, subordinated or unsecured loans, and mezzanine loans. It seeks to invest in a range of industries with a focus on media, communications, and business services. The company primarily seeks to invest between $3 million and $10 million. However, it can also make larger investments.

Advisors' Opinion:

• [By Monica Wolfe]

  Full Circle Capital Corp (FULL)

  Over the past week there were two insiders making four buys into Full Circle Capital.  These buys come as the company's price has hit its lowest price since Nov. 2011.

source from Top Stocks Blog:http://www.topstocksblog.com/10-best-dow-dividend-stocks-for-2014.html

How to Cash In on Rare Coins

Who says a dollar doesn’t buy what it used to?

Heritage Auctions sold an 1804 U.S. silver dollar for $3.9 million less than a year ago.

As is the case with many rare coins, the silver dollar has a fascinating backstory. According to the Dallas-based company, the coin was actually made in 1834 or 1835 despite the 1804 date. U.S. State Department representatives used the coin as a diplomatic gift on trade missions to the Middle East and Asia.

It is one of only eight of its kind and is considered one of the most prized U.S. coins.

Collectible coins can be a fun and potentially profitable way for investors to diversify traditional investment portfolios.

The emphasis should be on the “potential” nature of profits and the longer-term perspective these investments require. Like other collectibles, coins involve dealer markups and price volatility.

The Professional Coin Grading Service 3000 price index, which includes multiple component-coins, peaked at $181,000 in May 1989 before dropping precipitously to about $47,000 in December 1994. Prices recovered somewhat, but the financial crisis knocked the index back from about $73,000 in late 2008 to roughly $67,000 in mid-2012.

The benchmark  now trades at around $67,740, slightly off its 12-month high of 67,935.

The current market looks healthy, says Chris Lane, general manager of numismatics with Heritage Auctions. In addition to Heritage’s successful auctions featuring rare coins, he points to the very strong demand for the U.S. Mint’s March sale of Baseball Hall of Fame coins as an example of market strength.

These coins have a unique curved shape to match the struck baseball glove and the $5 gold coins sold out immediately. According to a report on the Coin World website, these coins originally sold for $420 are now selling in the eBay secondary market for about $700.

The challenge for any collector, especially newcomers, is knowing how to buy quality coins at reasonable prices. Working with reputable dealers is a safer option than going it alone, and grading services can provide quality assurance.

The Numismatic Guaranty Corporation (NGC) and the Professional Coin Grading Service (PCGS) both rate coins’ quality. Industry professionals consider these ratings essential for collectors.

Ron Drzewucki, CEO of Modern Coin Wholesale in Lakewood Ranch, Fla., says that accurate grading is critical for proper valuation. A one-grade differential between two identical coins can have a significant impact on their relative market prices, he notes.

Lane concurs and cautions collectors about buying uncertified coins. “I would say stick with those two services (NCG and PCGS),” he explained in an interview. “At the very best, you’re going to buy coins that have been professionally graded and they’ve been looked at by professional numismatists.”

According to the expert, these two groups are “the gold standard in the industry. That way you don’t buy an uncertified or what we call in the industry a raw coin. You’ve got to think the first thing if somebody offers you a coin that’s not certified, why after almost 30 years of these two companies in business, why wouldn’t somebody with a very rare valuable coin not have it certified? That should raise the red flags immediately.”

Collectors need to do their homework before trading, he and other numismatic professionals emphasize. Otherwise, they’re at a serious information disadvantage.

The good news is that there are an estimated 7 million to 10 million coin collectors in the U.S., and that market has helped create an industry to serve them.

Available resources include guidebooks, price guides, websites, magazines and databases of dealer auction transactions. 

3 FTSE Shares Crashing to New Lows

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) is crumbling today under a couple of heavy weights: the U.S. Federal Reserve's plan to wind down its economic stimulus measures and the £27.1 billion hole in capital funding at U.K. banks revealed by the Prudential Regulation Authority. But even though the U.K.'s top-tier index has fallen 2.7% to 6,174 points with an hour left in trading, it's still a long way up from its 52-week low of 5,436 points set almost a year ago.

Sadly, the same can't be said for a number of individual companies. Here are three from the FTSE indexes plumbing new depths.

Antofagasta (LSE: ANTO  )
If you're looking for a share that's falling to new lows, you'd stand a high chance of finding one by simply picking a miner. Antofagasta is one of them, with its shares hitting a 52-week low of 830 pence today -- they were as high as 1,392 pence in January.

Antofagasta, whose primary business is copper mining, has been hit by falling prices of key industrial metals like copper, iron, and aluminum as demand from China falls off -- the most recent data from the People's Republic suggests an accelerating slowdown in June.

Forecasts for Antofagasta suggest a 22% fall in earnings per share this year and put the shares on P/E of 12.5.

Mulberry (LSE: MUL  )
Shares in fashion designer Mulberry Group are falling further, hitting a new 12-month low of 825 pence today -- and that's close to a 45% fall over the past year. The shares slumped when the firm issued a profit warning in March, then slipped further when the bad omen came to pass on annual results day a week ago.

There is an 18% rise in EPS forecast for the year to March 2014, but even that still puts the shares on a P/E of more than 23 -- and the same again for 2015 only drops it to 20. With dividend yields only around 1%, the shares could still be overpriced.

Fresnillo (LSE: FRES  )
It's not just miners of industrial metals that are suffering; those delving for precious metals are down too, as prices for the shiny stuff have also tumbled. Among them, Fresnillo fell to a new 52-week low today of 967 pence.

Engaged in the extraction of gold and silver in Mexico, with its main interest being the Fresnillo silver mine, the firm saw a 17% fall in EPS for the year to December 2012, and there's a further 11% drop forecast for this year. There's an expected dividend yield of a pretty average 3.2%, but the shares are on a demanding forward P/E of 20.

What's the best way to deal with share price falls? One way is to focus on dividends, which can be spent or reinvested, according to your needs. Whether you're investing for income or growth, good old cash is always welcome. And that's why I recommend the brand-new Fool report "The Motley Fool's Top Income Share For 2013," in which our top analysts identify a share they believe will provide handsome dividend income for years to come. It will only be available for a limited period, so click here to get your copy today.

Forex Market Going Through The motions

The confrontation in Ukraine, which has upset markets over the past week, is keeping investors on edge heading into the Easter long weekend. Expect forex ranges to be tight, volatility kept to a minimum, and liquidity becoming thinner while watching for any developments on the geopolitical front. Already, the four-party talks (Russia, Ukraine, US, and EU diplomats) on the conflict starting in Geneva today has the US officials admitting that they do not have much confidence of a breakthrough. The delegations are supposedly focusing on a blueprint towards de-escalation. However, in anticipation the US seems to be already preparing for additional sanctions against Russia if the situation remains unchanged.

Yellen spoke and nothing new has the dollar continuing to trade within its current range. The Fed head reiterated yesterday that she expected interest rates to remain very low until the recovery is on a “more secure footing and the American economy is more fully involving available workers and other resources” – a robust and healthy job market still appeared to be “more than two years away.” The “lower for longer” talk had probably more to do with clarifying her remarks last month during her first news conference as Fed chairwoman that suggested the central bank might begin backing up rates as early as the middle of 2015. It seems that a significant dollar movement is probably going to have more of immediate reaction to the release of fundamental data as they come in – if so, the key will still be employment data.

 

Even verbal intervention from Eurocrats, especially the French over the past 24-hours, is having little effect in downward price action of the 18-member single currency. The EUR has tried the downside but dovish Yellen's somewhat have the USD on the defense as we wrap up this holiday shorten week. Rhetoric is not dissuading the “long” positions and the longer that the market does not go down the higher the chance that weaker “short” positions will be squeezed on the topside. For most techs, the scope is to test that psychological €1.4000, as the failure to breakdown through €1.3775 with gusto puts the overall bias on the upside for now at least. This years €1.3967 peak still beckons.

 

Japan's PM Abe and his government have not got it easy, if anything, the mountain that they have been climbing has just got that bit higher. Earlier today, the Japanese government has amended their country's economic view for the first time since November 2012. This was done on the back of the recent implemented consumption sales tax impact. They have cut their overall views on consumption, housing investment, factory output and imports. Despite all of this, Japanese officials still feel confident in the stimulus measures that they have put in place. The government continues to indicate that there is “no gap” in view with the BoJ. Governor Kuroda continues to reject the need for immediate easing action despite government data signaling a sharp pullback in consumption. Their stance will certainly disappoint the “short” JPY positions that have been hoping to see the BoJ act early to pop up tentative growth. The JPY does seem a bit rudderless for now where immediate direction is geopolitical and option demand related.

 

The currency of the moment is still sterling. The pound continues to advance against most currencies, hitting a four-year high against the dollar in overnight trading (£1.6839) as expectations for an early rate hike by the BoE continues to gather momentum. Robust Jobs data this week (UK unemployment rate fell to 6.9%) has many beginning to shift their interest rate sentiment from neutral to hawkish. Mind you, Yellen's comments yesterday emphasizing her focus on low inflation and economic slack are also supporting GBP (£1.6818). For many the BoE seems to be leading the pack of Central Banks in starting to raise benchmark interest rates as the UK economy is expected to expand at a faster rate of growth than the US this year (2.9%). Canada will tell you that Governor Carney is not a Central Banker to sway easily.

 

Other Links:
Nothing Untoward From The BoC

The post Forex Market Going Through The motions appeared first on MarketPulse.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Forex Markets

Originally posted here...

  Most Popular Morgan Stanley Believes Now is the Time to Invest in Apple Ginnie Mae To Big Banks: Show Us Your Mortgages. But Can They? Morgan Stanley Sees Limited Stock Upside for Kinder Morgan Energy Partners LP Earnings Scheduled For April 17, 2014 Staples Vs. Office Depot: Which Would You Rather? Morgan Stanley on Mallinckrodt: Controversy Around Acthar Unsettling Related Articles () #PreMarket Prep Guest List For The Week of April 21, 2014 Benzinga Weekly Preview: Earnings Season Kicks Into High Gear Comcast, Time Warner Siad to be in Discussions to Sell Subscribers to Charter Communications for Up to $20B -FT Direxion Planning Hedge Fund Tracking ETF - ETF News And Commentary Buy When Everyone is Selling - Weekend Wisdom Forex Market Going Through The motions Around the Web, We're Loving...

PepsiCo, Inc. Beats Q1 Estimates; Stock Soars (PEP)

Before the opening bell on Thursday, PepsiCo (PEP) reported its first quarter earnings, posting higher EPS and organic revenue than last year’s Q1.

PEP’s Earnings in Brief

PepsiCo reported first quarter revenues of $12.62 billion, which were up from last year’s Q1 revenues of $12.58 billion. Net income for the quarter came in at $1.23 billion, a 13% increase from last year’s Q1 net income of $1.09 billion. The company's core Q1 EPS was 83 cents, marking a 7% increase over last year’s Q1 figure. PEP was able to beat analysts’ estimates of 75 cents EPS on revenues of $12.43 billion. For 2014, PepsiCo expects core EPS to grow by 7%.

CEO Commentary

PEP’s chairman and CEO Indra Nooyi had the following comments about the company’s Q1 earnings: ”We’re pleased with our performance in the first quarter of 2014. PepsiCo delivered mid-single-digit organic revenue growth and double-digit core constant currency earnings per share growth, despite ongoing macroeconomic volatility, political instability and other challenging marketplace conditions in a number of our key markets. We continue to perform well, in part, because we have strong, balanced portfolios of brands, products and geographies that enable us to capture growth opportunities across multiple demand spaces while  we responsibly manage through the volatility and challenges in other parts of the business.”

10 Best Japanese Stocks To Own Right Now

PEP’s Dividend

PepsiCo’s last dividend raise was announced at the end of April 2013, when the company boosted its quarterly payout to 57 cents from 54 cents. We expect a similar move to be announced in the new few weeks.

Stock Performance

PEP stock was up $2.44, or 2.91%, in pre-market trading. YTD, the company’s stock is up 3.25%.

PEP Dividend Snapshot

As of Market Close on April 16, 2014

Click here to see the complete history of PEP dividends.

The Big Soda Showdown

The following video is from Thursday's Investor Beat, in which host Chris Hill, and analysts Jason Moser and Isaac Pino dissect the hardest-hitting investing stories of the day.

Shares of SodaStream International (NASDAQ: SODA  ) rose on media reports that the upstart beverage company was in talks to be acquired by PepsiCo (NYSE: PEP  ) for $2 billion. Pepsi refuted the reports, calling them "completely and utterly untrue." Despite the denial, investors seem to like the idea of a potential deal. In this installment of Investor Beat, Motley Fool analysts Jason Moser and Isaac Pino discuss the competitive landscape in the beverage industry, the likelihood of Coca-Cola (NYSE: KO  ) or PepsiCo acquiring SodaStream, as well as SodaStream's long-term outlook.

SodaStream's carbonation technology sounds simple, but this razor-and-blade company offers an intriguing opportunity for growth that could very well disrupt the soda industry. The Motley Fool's premium report on SodaStream explains the opportunities, as well as the risks, in the company. The report comes with a year's worth of updates, so just click here to get started.

The relevant video segment can be found between 0:16 and 3:08.

Report: Google weighs extending sales of Glass

Might Google extend public sales of its Glass wearable device beyond today?

Mashable reports the company is weighing whether to continue selling the Explorer Edition of Google Glass, available today only, for $1,500.

"The sale may go longer than a day; we just have to see how well everything works and how well we handle the demand," a Google representative tells Mashable.

In a post on social network Google+, the company says "things are moving really fast" on Glass sales. "We're happy to see so many new faces (and frames) in the Explorer Program."

Top 5 Chemical Companies To Own In Right Now

Google Glass was available today only in five colors, but according to the Glass website, the Cotton white version has sold out.

This model of Google Glass is based off the Explorers Program, introduced in 2012 to get its unique wearable device into the hands of users.

Consumers who sought to purchase Glass had to live in the United States and be 18 or older to be eligible. Buyers choose between sunglasses or prescription frames when making their purchase.

Along with the launch of consumer Glass sales, the company says it will roll out an update next week that bolsters battery life, adds a new photo-sharing feature and tweaks tools for developers. The option to launch video calls will be removed because of a poor user experience and low usage, says Google.

In March, Google announced several deals that will feature versions of Glass on frames made by eyewear giants Oakley and Ray-Ban.

Google Glass headlines the next frontier for electronic devices in wearable technology, although companies have focused largely on wristwear, such as fitness bands and smartwatches.

Last month, Google introduced Android Wear, a version of the Android operating system for smartphones and tablets designed specifically for smartwatches. Google is working with hardware makers inclu! ding Asus, LG and Qualcomm to design chips and gadgets leveraging Wear. The first watches launch later this year.

Follow Brett Molina on Twitter: @bam923.

Why Principal’s Retirement Insurance May Be Its Best Asset

Last week Principal Financial Group Inc. (PFG) announced its newest deal with private benefits company Liazon Corp., through which the firm will offer employer-sponsored group benefit plans to small and medium businesses. While the company already sells ancillary benefit plans, this deal will now also include dental, life insurance, disability insurance and critical illness coverage in an attempt to stay on top of the insurance industry. As an industry leader, Principal has over $466 billion in assets under management and 19 million customers, fragmented among small and medium-size businesses. Furthermore, its solid fourth quarter results have encouraged investment gurus like Paul Tudor Jones (Trades, Portfolio) and Steven Cohen (Trades, Portfolio) to recently acquire large amounts of the company's shares. So, let's see what this insurer has in store for the future.

Top 10 Information Technology Companies To Own In Right Now

Broadening Horizons

Although Principal's core business is in life insurance, the company has been pursuing a more diverse growth strategy lately, and is now focused on expanding its position in the retirement service and asset management segment. With almost 30,700 pension plans covering over 3.4 million customers, this business' growth rate has not only boosted overall profitability, marked by a 31% annual increase in operating earnings for fiscal 2013, but also helped offset the headwinds of low interest rates and volatility in the emerging markets. In fact, the fourth quarter showed a 65% boost in premium and fee income for the segmenta , consequence of the rollout of total retirement suite products.

Moreover, Principal's emphasis on retirement products and its use of capital salesforce for distribution has added on to the natural switching cost advantage in the insurance industry. Since plan sponsors provided with pension assets rarely switch providers, the company will likely benefit in the long term from its persistency, as seen in the quarterly 9% bump in recurring deposits.

On another note, Principal's fee-based business model, in addition to its investment in technology, is favourable as it is both scalable and capital-light, allowing the company to efficiently cater to the needs of its clients in highly fragmented markets. Furthermore, the firm has replicated this model in its international segment, which reported a 17% increase in earnings during the fourth quarter, in Brazil, Chile and China. Its strategy of partnering with local banks has also enabled the firm to expand its service offerings, now ranging from record-keeping to money-managing services for small and medium-sized businesses. Thus, I'm bullish that growth in these key markets will continue to reap profits looking forward.

Stable Long-Term Growth

Looking forward, Principal is set to continue its profitable trail, by gaining market share in the pension segment and expanding its business model in emerging markets. While annual revenue growth for fiscal 2013 was slow, marking a 3% rate, the company's strategic acquisitions overseas are expected to increase this metric to a 5% CAGR until 2018. Moreover, the current 9.83% net margin is expected to expand to an average 12.6% for the years to come, while returns on equity grow from 9.42% to an average 13%.

I also remain impressed by Principal's 14.8% EPS growth, jumping from 2012's $1.95 to a current $2.95. With a 2.38% dividend yield above the industry average of 2.08% and the stock trading at 13.6x trailing earnings below the industry median of 14.0x, I believe investors stand to benefit from a long term shareholder position in this insurer.

Disclosure: Patricio Kehoe holds no position in any stocks mentioned.

Also check out: Paul Tudor Jones Undervalued Stocks Paul Tudor Jones Top Growth Companies Paul Tudor Jones High Yield stocks, and Stocks that Paul Tudor Jones keeps buying
About the author:Patricio KehoeA fundamental analyst at Lone Tree Analytics

Currently 0.00/512345 Rating: 0.0/5 (0 votes)

Subscribe via Email Subscribe RSS Comments Please leave your comment:
More GuruFocus Links

Latest Guru Picks	Value Strategies
Warren Buffett Portfolio	Ben Graham Net-Net
Real Time Picks	Buffett-Munger Screener
Aggregated Portfolio	Undervalued Predictable
ETFs, Options	Low P/S Companies
Insider Trends	10-Year Financials
52-Week Lows	Interactive Charts
Model Portfolios	DCF Calculator
RSS Feed	Monthly Newsletters
The All-In-One Screener	Portfolio Tracking Tool

MORE GURUFOCUS LINKS

Latest Guru Picks	Value Strategies
Warren Buffett Portfolio	Ben Graham Net-Net
Real Time Picks	Buffett-Munger Screener
Aggregated Portfolio	Undervalued Predictable
ETFs, Options	Low P/S Companies
Insider Trends	10-Year Financials
52-Week Lows	Interactive Charts
Model Portfolios	DCF Calculator
RSS Feed	Monthly Newsletters
The All-In-One Screener	Portfolio Tracking Tool

PFG STOCK PRICE CHART 44.05 (1y: +28%) $(function(){var seriesOptions=[],yAxisOptions=[],name='PFG',display='';Highcharts.setOptions({global:{useUTC:true}});var d=new Date();$current_day=d.getDay();if($current_day==5||$current_day==0||$current_day==6){day=4;}else{day=7;} seriesOptions[0]={id:name,animation:false,color:'#4572A7',lineWidth:1,name:name.toUpperCase()+' stock price',threshold:null,data:[[1366002000000,34.36],[1366088400000,34.92],[1366174800000,34.15],[1366261200000,33.58],[1366347600000,34.34],[1366606800000,34.51],[1366693200000,35.26],[1366779600000,35.6],[1366866000000,35.78],[1366952400000,35.74],[1367211600000,35.82],[1367298000000,36.1],[1367384400000,35.62],[1367470800000,35.99],[1367557200000,36.72],[1367816400000,36.99],[1367902800000,37.26],[1367989200000,37.29],[1368075600000,36.89],[1368162000000,37.05],[1368421200000,37.15],[1368507600000,37.87],[1368594000000,38.1],[1368680400000,37.64],[1368766800000,38.14],[1369026000000,38.04],[1369112400000,38.14],[1369198800000,37.58],[1369285200000,37.26],[1369371600000,37.22],[1369717200000,38.01],[1369803600000,38.15],[1369890000000,38.51],[1369976400000,37.85],[1370235600000,37.7],[1370322000000,37.64],[1370408400000,37.25],[1370494800000,37.8],[1370581200000,38.58],[1370840400000,38.72],[1370926800000,38.01],[1371013200000,38.03],[1371099600000,38.67],[1371186000000,38.04],[1371445200000,38.75],[1371531600000,38.88],[1371618000000,38.2],[1371704400000,37.23],[1371790800000,36.8],[1372050000000,36.12],[1372136400000,36.99],[1372222800000,37.46],[1372309200000,37.97],[1372395600000,37.45],[1372654800000,37.82],[1372741200000,37.29],[1372827600000,36.97],[1373000400000,37.91],[1373259600000,38.32],[1373346000000,38.66],[1373432400000,38.41],[1373518800000,38.85],[1373605200000,38.9],[1373864400000,38.75],[1373950800000,38.79],[1374037200000,39.46],[1374123600000,39.83],[1374210000000,39.68],[1374469200000,40.73],[1374555600000,40.41],[1374642000000,40.09],[1374728400000,40.46],[1374814800000,42.99],[1375074000000,42.52],[1375160400000,42.65],[1375246800000,43.36],[1375333200000,44.85],[1375419600000,44.37],[1375678800000,43.83],[1375765200000,43.41],[1375851600000,43.05],[1375938000000,43.11],[1376024400000,42.89],[1376283600000,42.56],[1376370000000,42.95],[1376456400000,42.83],[1376542800000,41.97],[13! 76629200000,42.48],[1376888400000,41.89],[1376974800000,42.28],[1377061200000,42.01],[1377147600000,42.45],[1377234000000,42.31],[1377493200000,42.14],[1377579600000,40.6],[1377666000000,40.79],[1377752400000,41.16],[1377838800000,40.92],[1378184400000,41.38],[1378270800000,41.84],[1378357200000,42.08],[1378443600000,42.04],[1378702800000,42.68],[1378789200000,43.75],[1378875600000,43.83],[1378962000000,43.44],[1379048400000,43.09],[1379307600000,43.84],[1379394000000,43.9],[1379480400000,43.97],[1379566800000,43.2],[1379653200000,43.24],[1379912400000,42.95],[1379998800000,43.08],[1380085200000,43.28],[1380171600000,43.49],[1380258000000,43.19],[1380517200000,42.82],[1380603600000,43.01],[1380690000000,43.02],[1380776400000,42.61],[1380862800000,43.41],[1381122000000,42.5],[1381208400000,41.71],[1381294800000,42.04],[1381381200000,43.32],[1381467600000,43.94],[1381726800000,44.12],[1381813200000,43.91],[1381899600000,44.93],[1381986000000,45.62],[1382072400000,46.36],[1382331600000,46.31],[1382418000000,46.6],[1382504400000,46.24],[1382590800000,46.75],[1382677200000,46.85],[1382936400000,47.08],[1383022800000,47.92],[1383109200000,47.55],[1383195600000,47.46],[1383282000000,47.48],[1383544800000,47.81],[1383631200000,47.47],[1383717600000,47.95],[1383804000000,46.96],[1383890400000,48.44],[1384149600000,48.17],[1384236000000,47.85],[1384322400000,48.28],[1384408800000,48.94],[1384495200000,49.19],[1384754400000,49.26],[1384840800000,49.15],[1384927200000,49.01],[1385013600000,49.69],[1385100000000,50.16],[1385359200000,50.07],[1385445600000,50.59],[1385532000000,50.62],[1385704800000,50.63],[1385964000000,50.29],[1386050400000,49.7],[1386136800000,49.48],[1386223200000,49.17],[1386309600000,49.46],[1386568800000,49.39],[1386655200000,49.22],[1386741600000,48.43],[1386828000000,48.32],[1386914400000,48.08],[1387173600000,48.1],[1387260000000,47.61],[1387346400000,48.47],[1387432800000,48.2],[1387519200000,48.75],[1387778400000,49.23],[1387864800000,49.4],[1388037600000,49.56],[1388124000000,49.38],[138! 838320000! 0,49.16],[1388469600000,49.31],[1388642400000,48.62],[1388728800000,48.96],[1388988000000,49.01],[1389074400000,49.04],[1389160800000,49.13],[1389247200000,49.79],[1389333600000,49.56],[1389592800000,47.72],[1389679200000,48.35],[1389765600000,48.22],[1389852000000,47.94],[1389938400000,47.44],[1390284000000,47.33],[1390370400000,47.23],[1390456800000,45.68],[1390543200000,43.97],[1390802400000,43.78],[1390888800000,44.3],[1390975200000,43.37],[1391061600000,44.3],[1391148000000,43.57],[1391407200000,41.71],[1391493600000,42.26],[1391580000000,42.38],[1391666400000,42.74],[1391752800000,43.49],[1392012000000,43.

Why EnerNOC's Shares Plunged Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of EnerNOC (NASDAQ: ENOC  ) dropped as much as 20% today after the stock was downgraded by an analyst.

So what: Credit Suisse was the culprit today, downgrading the stock from outperform to neutral. For a bit of perspective, the stock was upgraded by Pacific Crest, downgraded by Zacks, and had its price target increased from $17 to $18.50 by JPMorgan all in the month of May.  

5 Best Quality Stocks To Invest In Right Now

Now what: If you need a reason why we at The Motley Fool don't take analyst upgrades and downgrades very seriously, then EnerNOC's price action today is exhibit No. 1. Is the company really worth nearly $100 million less today than it was yesterday? Not to a long-term investor, so I don't think today's move changes the investment thesis, and if you're bullish (which I'm not) this should be viewed as a discount more than a reason to panic today.

Interested in more info on EnerNOC? Add it to your watchlist by clicking here.

Mid-Day Market Update: Gap Shares Decline On Weak March Sales; BofI Holding Jumps

Related BZSUM Market Wrap For April 11: Markets Pick Up Exactly Where They Left Off Mid-Morning Market Update: Markets Open Lower; J.P. Morgan Profit Misses Estimates

Midway through trading Friday, the Dow traded down 0.50 percent to 16,089.62 while the NASDAQ tumbled 0.43 percent to 4,036.78. The S&P also fell, dropping 0.38 percent to 1,826.07.

Leading and Lagging Sectors
In trading on Friday, energy shares were relative leaders, up on the day by about 0.06 percent. Among the leading sector stocks, gains came from Equal Energy (NYSE: EQU) and Niska Gas Storage Partners LLC (NYSE: NKA). Financial sector was the leading decliner in the US market today.

Top losers in the sector included Alto Palermo SA (NASDAQ: APSA), off 5.5 percent, and Piper Jaffray Companies (NYSE: PJC), down 3.5 percent.

Top Headline
J.P. Morgan Chase & Co (NYSE: JPM) reported a 19% drop in its first-quarter profit. J.P. Morgan's quarterly profit declined to $5.3 billion, or $1.28 per share, versus a year-ago profit of $6.53 billion, or $1.59 per share. Its revenue slipped 8% to $22.99 billion versus $25.12 billion. J.P. Morgan's investment banking net income dropped 15%. However, analysts were estimating earnings of $1.39 per share on revenue of $24.43 billion.

Equities Trading UP
BofI Holding (NASDAQ: BOFI) shares shot up 10.67 percent to $82.38 after H&R Block agreed to sell its banking business to BofI Federal Bank for an undisclosed amount.

Shares of Zynga (NASDAQ: ZNGA) got a boost, shooting up 2.70 percent to $4.18 after the company named David Lee as Chief Financial Officer and Chief Accounting Officer. Morgan Stanley upgraded Zynga from Underweight to Equal-weight.

Diamondback Energy (NASDAQ: FANG) shares were also up, gaining 5.73 percent to $69.39 after the company reported a 30% growth in Q1 production.

Equities Trading DOWN
Shares of The Gap (NYSE: GPS) were down 2.53 percent to $38.29 after the company reported a 6% decline in its same-store sales in March, versus analysts' expectations for a 4.7% fall.

Relypsa (NASDAQ: RLYP) shares tumbled 4 percent to $24.22 after the company priced 3.59 million share offering at $24.50 per share.

JPMorgan Chase & Co (NYSE: JPM) was down, falling 3.21 percent to $55.56 after the company reported downbeat Q1 earnings.

Commodities
In commodity news, oil traded up 0.74 percent to $104.16, while gold traded down 0.17 percent to $1,318.30.

Silver traded down 0.43 percent Friday to $20.01, while copper fell 0.15 percent to $3.04.

Eurozone
European shares were lower today.

The Spanish Ibex Index fell 1.26 percent, while Italy's FTSE MIB Index dropped 1.07 percent.

Meanwhile, the German DAX fell 1.47 percent and the French CAC 40 fell 1.08 percent while U.K. shares declined 1.21 percent.

Economics
US producer price index rose 0.5% in March, versus economists' expectations for a 0.1% growth.

The preliminary reading of Reuters/University of Michigan's consumer sentiment index rose to 82.60 in April, versus a prior reading of 80.00. However, economists were expecting a reading of 81.00.

Posted-In: Earnings News Guidance Eurozone Futures Forex Global Econ #s Economics Intraday Update Markets Movers Tech

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Most Popular SEC Halts Trading Of GrowLife, Here's Why Five Star Stock Watch: Gilead Sciences IPO Outlook for Friday, April 11: City Office, Paycom Software, Farmland Partners & More UPDATE: GrowLife Issues Response to SEC Notice Goldman Sachs Visits With Tesla Management, Updates Each Business Category Short Interest in Groupon, Twitter On The Rise (GRPN, TWTR, ZNGA) Related Articles (APSA + BOFI) Mid-Day Market Update: Gap Shares Decline On Weak March Sales; BofI Holding Jumps Mid-Morning Market Update: Markets Open Lower; J.P. Morgan Profit Misses Estimates Benzinga's Top #PreMarket Gainers

3 Reasons To Love "EER" Investing

Editor's Note: This article is brought to you by Steve Reitmeister, Executive VP with Zacks Investment Research.

I wasn't always a good investor. Over the past 32 years I've made just about every mistake imaginable. 

-- Jumped in at the peak

-- Jumped out too late

-- Bought falling knives

-- Doubled down on losers

-- You name it, I probably did it.

By the time I joined up with Zacks Investment Research in August 1999, I had eradicated most of those bad habits. But as Len Zacks, founder, and his brother Ben pointed out... I had a lot to learn.

You see, Len's life's work has been to help investors find success and in 1978, armed with his PhD from MIT, he hit upon a key discovery:

Earnings estimate revisions are the most powerful force impacting stock prices.

What I quickly learned is, indeed, earnings estimate revisions (EER) are the most powerful force impacting stock prices. And nothing captures that power more than the Zacks Rank rating system as proven by its 26% per year annual return. 

The timing of this profound investment message could not have been better for me. As the stock market bubble popped in 2000 I started to apply this new investing approach. So even though the market tumbled that year I actually gained 16% in my personal account.

 

Was I hooked? Heck yes!!!

Each year since, my knowledge and passion for this approach has grown. And there is nothing I like more than to share the wisdom of this investing strategy with others. My goal today is to spread some of that wisdom on to you so you can also enjoy great investment success in the years to come. I'm going to accomplish this goal by listing...

The 3 Top Reasons to Love Earnings Estimate Revisions:

1) The Most Fundamentally Sound Metric: There are so many different websites, magazines, books, TV stations etc. dedicated to investments. The amount of information overload is so unbearable that most investors walk away horribly confused about what is truly important to achieve success. So let me simplify the matter for you so you can push away all that noise and nonsense in the future. 

At the end of the day, all stock price movements can be traced back to earnings. 

Read that line again so it really sinks in. The reason it's true is from the basic fact that when you buy shares in a company, you are actually buying a percentage ownership stake in that firm. And if you are the owner of a company, big or small, then the single most important metric to gauge success is how much earnings are generated. 

If profits go higher than expected, the share price will rise. Conversely if profits go lower than expected, the share price will come down as well. The stock market has always worked on this premise and it always will. And nothing captures the essence of this notion more than earnings estimate revisions. 

2) Applies to Every Type of Investor: Because all stock price movements can be traced back to earnings, it follows that earnings should be at the heart of every investment decision. But that is not the same as saying that earnings are the ONLY thing to consider when selecting a stock. That is just the starting point. From there, each investor can layer on other concepts such as value, growth, charts etc. to find the stocks that fit their unique approach. 

My favorite analogy for this is to say that earnings are to stock investing as flour is to baking. That's because nearly 100% of baked goods include flour in the recipe. What makes each item unique and delicious is the rest is what you add into it (sugar, flavorings, nuts, fruit, butter etc.). Each way works out well, but each starts with flour to make it all come together. So you can apply other factors on top of earnings and estimates to make it suit your unique investment tastes as well. 

3) It WORKS!: When you put the philosophy and analogies aside, earnings estimate revisions simply work. This is clearly proven by the market-crushing 26% average annual returns of the Zacks Rank since 1986. Through up and down markets it has provided extraordinary, life-changing results for investors. I can certainly testify that is true for me. So I know it can do the same for you too. 

What to Do Next?
Now you can take advantage of an unmatched way to put earnings estimate revisions as expressed through the Zacks Rank to work for your trading success. We've set up several private portfolio recommendation services that provide a handful of stocks to serve a variety of investment styles, including short-term trading to long-term investing, value to growth, fundamental to technical, and stable income to hot momentum.

Which of them fits you best? The best way to select the service that's right for you is to try them all. So I invite you to look into our Zacks Ultimate trial program, which gives you access to every one of our stock-picking services, even those currently closed to new members. I have arranged for you to see all of our trades and insights for the next 30 days in a unique way. Read more about Zacks Ultimate here. 

How Lowe's Hopes to Become No. 1

On Wednesday, Lowe's (NYSE: LOW  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Lowe's has played the role of sidekick to industry leader Home Depot (NYSE: HD  ) for a long time, with Home Depot having earned a spot in the Dow Jones Industrials while Lowe's has languished behind. Yet despite having a market cap just half Home Depot's size right now, Lowe's has plenty of growth opportunities that could help it catch up with its archrival. Let's take an early look at what's been happening with Lowe's over the past quarter and what we're likely to see in its quarterly report.

Stats on Lowe's

Analyst EPS Estimate	$0.51
Change From Year-Ago EPS	16%
Revenue Estimate	$13.45 billion
Change From Year-Ago Revenue	2.2%
Earnings Beats in Past 4 Quarters	3

Source: Yahoo! Finance.

Did Lowe's earnings get chilly this quarter?
Analysts have largely stuck by their views on Lowe's earnings, cutting just a single penny from their estimates for the just-ended quarter and the current fiscal year. The stock has done fairly well, rising about 8% since mid-February.

Lowe's has a much longer history of serving the home-improvement market than many investors realize. Even though the company has seen plenty of up and down cycles, Lowe's has managed to earn a spot among the Dividend Aristocrats by raising its annual dividend every single year for the past half-century. More recently, Lowe's has accelerated its dividend growth pace, with its payout having almost doubled in just the past five years.

But Lowe's hasn't done a good job of matching up against Home Depot's strength. While Home Depot has incorporated better use of its workers' skill sets and greater use of innovative technology to help improve efficiency and boost profits from its commercial customers, Lowe's has faced the headwinds of weakness in the appliance space and other pure do-it-yourself project materials.

Moreover, some investors worry that the huge run-up in Lowe's stock price already indicates overheated expectations for the retailer. Earlier today, Oppenheimer downgraded the stock, maintaining its favorable price target on Lowe's but removing its buy rating in advance of the earnings release.

Still, Lowe's expects the good times to continue and is taking steps to capitalize, with plans to hire 9,000 permanent part-time employees. CEO Robert Niblock believes that the recent rebound in home prices is finally making customers willing to spend on improving their homes, and it expects to see greater remodeling activity in the near future.

In Lowe's earnings report, look closely at the impact of a fairly cold start to the spring season on its sales of garden and outdoor materials. Wal-Mart (NYSE: WMT  ) already identified the weather as a factor in its weak quarterly report, and many of its stores have extensive lawn and garden offerings. If Lowe's follows suit, it could prove to be the catalyst that sends the stock falling from its heights, at least temporarily.

Best Value Stocks To Invest In Right Now

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Click here to add Lowe's to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Stocks Hitting 52-Week Lows

Related CDE Top 4 Stocks In The Silver Industry With The Lowest PEG Ratio How To Find The Key To Mining Private Equity Related RJET US Stock Futures Fall Ahead Of Consumer-Credit Data Republic Airways' Board of Directors Approves $75M Capital Plan; Up to $50M in Shares, Up to $50M in Notes

Coeur Mining (NYSE: CDE) shares touched a new 52-week low of $8.97 after the company reported its Q1 production results and maintained its 2014 production outlook.

Republic Airways Holdings (NASDAQ: RJET) shares reached a new 52-week low of $8.33. Republic Airways' trailing-twelve-month profit margin is 1.98%.

Alliqua (NASDAQ: ALQA) shares reached a new 52-week low of $7.33. Alliqua shares have jumped 114.86% over the past 52 weeks, while the S&P 500 index has gained 16.64% in the same period.

American Realty Capital Healthcare Trust (NASDAQ: HCT) shares touched a new 52-week low of $10.19. American Realty Capital Healthcare Trust's trailing-twelve-month EPS is -$0.15.

Posted-In: 52-Week LowsNews Movers & Shakers Intraday Update Markets

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Most Popular Baird Cautious On Tesla Ahead of First Quarter Earnings Biotechs Struggling To Find A Bottom Stifel Says Buy The Dip In Facebook, RetailMeNot, Netflix, Yahoo! Ahead Of Earnings UPDATE: Mars to Buy Significant Portion of P&G's Pet Food Unit (Including Iams, Eukanuba, Natura) for $2.9B in Cash; P&G Will Restate Race for Vaccines, Treatments as West Africa Ebola Death Toll Tops 100 IPO Lookout: IPOs For The Week Of April 7, 2014 Related Articles (CDE + ALQA) Stocks Hitting 52-Week Lows Top 4 Stocks In The Silver Industry With The Lowest PEG Ratio

Gurus Lose Faith in This Under-Pressure Railway

Across history, bread has been the reason for many revolts. For example, the price of bread rose to about a month's pay before the French Revolution of 1789. Before then, Roman emperors used bread to appease the masses and buy their loyalty. Today, a rapidly growing world population is far from a massive revolt, but the phenomena places additional pressure to those involved in the process of delivering the goods. In other words, what value is there in a greater production if the goods never reach the consumer?

It is in that sense that railroad companies have turned into a key link in the wheat production chain. Hence, Canada National Railway (CNI) is under heavy pressure to deliver, under a context aggravated by additional successes. Most importantly, gurus seem to have lost faith on the company, and those with the largest position continue to reduce their holdings.

Growing Through Absorption of Market Trends

The 2013 annual report's title, "Becoming a True Supply Chain Enabler: Making Connections," by Canada National Railway, says a lot about where management is aiming to take the company. The strategy is three-pronged: a fresh approach to the transborder food supply chain, connecting energy partners and suppliers, and intermodal. Such business strategies aim at absorbing current long-term market synergies unleashed by the food and energy industries, and the transportation industry as a whole.

First, Canada National Railway is one of the main transporters of harvested crops in Canada. Most recently, the company is offering a Fleet Integration Program for grain, oilseed and special crop shippers who wish to enter agreements to supply privately owned, covered hopper cars for integration to the Western Canadian common fleet. The program was strengthened by the need to move a record wheat harvest, reporting to have moved an excess of 4,000 hopper cars weekly.

The transported volume has given Canada National Railway an additional incentive to deepen the communication with grain elevator companies. In line with this, Claude Mongeau, CN president and chief executive officer, said: "We are continuing to make significant progress toward our goal of transporting close to 5,500 grain cars per week to meet the Canadian government's Order in Council of March 7, 2014. But CN can only meet its commitment if all other key players in the supply chain are equally held to account for their performance." Hence, the Canadian government began talks with grain elevator companies to improve transportation integration.

Top Up And Coming Companies To Buy Right Now

Last, the boom of unconventional exploration and production in the oil & gas industry has prompted a greater demand for shipping. Canada National Railway became particularly concerned with the trend due to its unique access to the Wisconsin sand deposits and direct reach to Western Canada oil and gas and other key North American shale plays through Class I railroad connections. Throughout 2013, the firm moved over 55,000 carloads in 2013 generating $200M in revenue, a 50% increase versus 2012.

Prospects for Growth

Canada National Railway made sure to close an agreement with union representatives to avoid strikes, while at the same time taking significant steps to strengthen the railway's Safety Management System. Safety improvements will focus on accident prevention, car robustness and emergency response. For that purpose, management has allocated C$2.1 billion in capital investments for 2014. Such steps will secure the company an effective absorption of developed market synergies in the long-term.

Lower coal shipments have negatively affected overall performance of Canada National Railway. Additional risks derived from high competition, unionized workers, fuel volatility prices and higher depreciation expenses. Nonetheless, the company remains well positioned in the market, and has successfully negotiated with unions. Most importantly, the company's stock trades at 20 times its trailing earnings, carrying a very small premium to the industry average. Also, revenue and net income has increased year-over-year since 2009, and has seen a small decline during 2013 due to abnormal weather conditions.

It is recommendable to acquire Canada National Railway for a long-term investment, given the current trends developed in the grain and oil and gas industries. These trends will have a long-term impact on overall performance, helping to overturn current small difficulties.

Disclosure: Vanina Egea holds no position in any of the mentioned stocks.

About the author:Vanina EgeaA fundamental analyst at Lone Tree Analytics

Visit Vanina Egea's Website

Currently 5.00/512345 Rating: 5.0/5 (1 vote)

Voters:

Subscribe via Email Subscribe RSS Comments Please leave your comment:
More GuruFocus Links

Latest Guru Picks	Value Strategies
Warren Buffett Portfolio	Ben Graham Net-Net
Real Time Picks	Buffett-Munger Screener
Aggregated Portfolio	Undervalued Predictable
ETFs, Options	Low P/S Companies
Insider Trends	10-Year Financials
52-Week Lows	Interactive Charts
Model Portfolios	DCF Calculator
RSS Feed	Monthly Newsletters
The All-In-One Screener	Portfolio Tracking Tool

MORE GURUFOCUS LINKS

Latest Guru Picks	Value Strategies
Warren Buffett Portfolio	Ben Graham Net-Net
Real Time Picks	Buffett-Munger Screener
Aggregated Portfolio	Undervalued Predictable
ETFs, Options	Low P/S Companies
Insider Trends	10-Year Financials
52-Week Lows	Interactive Charts
Model Portfolios	DCF Calculator
RSS Feed	Monthly Newsletters
The All-In-One Screener	Portfolio Tracking Tool

CNI STOCK PRICE CHART 55.22 (1y: +14%) $(function(){var seriesOptions=[],yAxisOptions=[],name='CNI',display='';Highcharts.setOptions({global:{useUTC:true}});var d=new Date();$current_day=d.getDay();if($current_day==5||$current_day==0||$current_day==6){day=4;}else{day=7;} seriesOptions[0]={id:name,animation:false,color:'#4572A7',lineWidth:1,name:name.toUpperCase()+' stock price',threshold:null,data:[[1365397200000,48.32],[1365483600000,48.3],[1365570000000,48.81],[1365656400000,48.89],[1365742800000,48.875],[1366002000000,47.95],[1366088400000,48.525],[1366174800000,47.535],[1366261200000,47.25],[1366347600000,47.98],[1366606800000,47.58],[1366693200000,47.26],[1366779600000,47.67],[1366866000000,47.935],[1366952400000,47.935],[1367211600000,48.42],[1367298000000,48.99],[1367384400000,48.27],[1367470800000,48.855],[1367557200000,49.4],[1367816400000,49.99],[1367902800000,50.465],[1367989200000,50.83],[1368075600000,50.55],[1368162000000,50.605],[1368421200000,50.505],[1368507600000,50.985],[1368594000000,50.74],[1368680400000,50.825],[1368766800000,51.345],[1369026000000,51.395],[1369112400000,51.52],[1369198800000,51.085],[1369285200000,50.58],[1369371600000,50.63],[1369717200000,50.605],[1369803600000,50.78],[1369890000000,51.41],[1369976400000,50.635],[1370235600000,51.33],[1370322000000,51.005],[1370408400000,49.24],[1370494800000,49.655],[1370581200000,49.9],[1370840400000,49.74],[1370926800000,49.27],[1371013200000,49],[1371099600000,49.77],[1371186000000,49.07],[1371445200000,48.98],[1371531600000,49.62],[1371618000000,48.91],[1371704400000,47.925],[1371790800000,47.585],[1372050000000,46.99],[1372136400000,47.88],[1372222800000,48.455],[1372309200000,48.665],[1372395600000,48.635],[1372654800000,48.935],[1372741200000,49.06],[1372827600000,48.935],[1373000400000,48.97],[1373259600000,48.675],[1373346000000,49.36],[1373432400000,49.185],[1373518800000,50.07],[1373605200000,50.475],[1373864400000,50.49],[1373950800000,50.325],[1374037200000,50.655],[1374123600000,50.77],[1374210000000,50.88],[1374469200000,50.765],[1374555600000,49.455],[1374642000000,49.66],[1374728400000,50.175],[1374814800000,50.275],[1375074000000,50.44],[1375160400000,50.295],[1375246800000,49.93],[1375333200000,50.42],[1375419600000,50.22],[1375678800000,49.765],[1375765200000,49.545],[1375851! 600000,49.17],[1375938000000,49.725],[1376024400000,49.335],[1376283600000,49.18],[1376370000000,49.55],[1376456400000,49.015],[1376542800000,48.865],[1376629200000,49.21],[1376888400000,48.705],[1376974800000,48.315],[1377061200000,47.405],[1377147600000,47.91],[1377234000000,48.22],[1377493200000,47.84],[1377579600000,46.95],[1377666000000,47.285],[1377752400000,47.38],[1377838800000,46.865],[1378184400000,47.3],[1378270800000,47.85],[1378357200000,47.985],[1378443600000,48.185],[1378702800000,48.11],[1378789200000,48.33],[1378875600000,48.87],[1378962000000,48.78],[1379048400000,48.95],[1379307600000,49.905],[1379394000000,50.035],[1379480400000,50.925],[1379566800000,51.15],[1379653200000,50.72],[1379912400000,50.665],[1379998800000,50.535],[1380085200000,49.885],[1380171600000,50.47],[1380258000000,50.815],[1380517200000,50.685],[1380603600000,51.34],[1380690000000,51.805],[1380776400000,51.19],[1380862800000,51.495],[1381122000000,51.89],[1381208400000,51.745],[1381294800000,52],[1381381200000,52.84],[1381467600000,52.88],[1381726800000,52.59],[1381813200000,52.505],[1381899600000,52.74],[1381986000000,52.845],[1382072400000,53.35],[1382331600000,53.28],[1382418000000,53.36],[1382504400000,55.185],[1382590800000,55.36],[1382677200000,55.11],[1382936400000,54.635],[1383022800000,54.95],[1383109200000,54.735],[1383195600000,54.965],[1383282000000,55.565],[1383544800000,55.485],[1383631200000,55.145],[1383717600000,55.625],[1383804000000,55.685],[1383890400000,55.78],[1384149600000,56.025],[1384236000000,55.91],[1384322400000,56.065],[1384408800000,56.26],[1384495200000,56.245],[1384754400000,56.25],[1384840800000,55.47],[1384927200000,55.995],[1385013600000,55.97],[1385100000000,56.505],[1385359200000,56.73],[1385445600000,56.015],[1385532000000,55.995],[1385704800000,56.25],[1385964000000,57.77],[1386050400000,56.76],[1386136800000,55.64],[1386223200000,55.83],[1386309600000,56.51],[1386568800000,56.29],[1386655200000,56.1],[1386741600000,54.49],[1386828000000,54.87],[1386914400000,54.74],[13871736! 00000,55.! 18],[1387260000000,54.83],[1387346400000,55.67],[1387432800000,56.41],[1387519200000,56.32],[1387778400000,56.82],[1387864800000,56.82],[1388037600000,57.11],[1388124000000,56.65],[1388383200000,56.72],[1388469600000,57.02],[1388642400000,56.42],[1388728800000,56.5],[1388988000000,55.62],[1389074400000,55.3],[1389160800000,54.25],[1389247200000,53.99],[1389333600000,54.48],[1389592800000,54.18],[1389679200000,53.33],[1389765600000,54.57],[1389852000000,53.67],[1389938400000,53.32],[1390284000000,53.71],[1390370400000,53.62],[1390456800000,53.78],[1390543200000,52.31],[1390802400000,52.1],[1390888800000,51.8],[1390975200000,51.94],[1391061600000,53.08],[1391148000000,53.5],[1391407200000,52.93],[1391493600000,53.55],[1391580000000,53.6],[1391666400000,54.26],[1391752800000,54.94],[1392012000000,54.95],[1392098400000,55.38],[1392184800000,56.09],[1392271200000,56.24],[1392357600000,56.33],[1392703200000,55.96],[1392789600000,55.62],[1392876000000,55.72],[1392962400000,55.71],[1393221600000,56.23],[1393308000000,55.73],[1393394400000,55

Greece to Break Up State Power Company for Money

ATHENS, Greece (AP) -- Greece's conservative-led government on Wednesday announced plans to break up the state-run Public Power Corporation by 2016, as part of a privatization program demanded by the crisis-hit country's creditors.

Government spokesman Simos Kedikoglou said that about 30 percent of PPC's resources would be spun off to create a rival company, while the company-owned transmission operator, Admie, would also be sold.

The government is planning to sell off a 17 percent stake of PPC after the breakup, leaving it with 34 percent of company and powers to veto decisions, Kedikoglou said. It will also retain a minority stake in the transmission operator.

"Careful consideration will be made for staff. There will be no dismissals," Kedikoglou told state-run NET television, insisting the privatization plan had the full backing of the government's left-wing and center-left coalition partners.

Top Heal Care Companies To Buy For 2014

PPC employs about 20,000 people.

The main left-wing opposition party, Syriza, described the proposed sale as "looting," while a PPC union representing power station workers and lignite miners in northern Greece said it would do "everything in its power to block the sale."

Shares in PPC rose 7.5 percent in Athens on Wednesday, with investors also buoyed by a sovereign rating upgrade by Fitch late on Tuesday. The main Athens index closed up 3.7 percent.

Greece's rescue lenders -- its euro partners and the International Monetary Fund -- have been pushing the government to speed up its privatizations campaign, one of the conditions for the bailout loans it has been receiving since 2010.

The government has promised the economy will grow gain and the state will once again borrow from bond markets next year. Greece's borrowing rates have improved steadily over the past year, with the interest rate on 10-year bonds falling from 30 percent in June, when the ruling coalition was formed, to just over 9 percent.

But austerity measures continue to hammer the economy. The Greek Statistical Authority reported Wednesday that economic output shrank 5.3 percent in the first quarter compared with a year earlier.

Rescue lenders are also demanding faster progress in dismantling market licensing restrictions and are pressing for the mass dismissal of civil servants -- triggering a new round of strikes this month.

On Wednesday, high school teachers' union members met to vote on whether to defy an emergency government order that would prevent them from holding rolling strikes from Friday. Teachers risk arrest if they press ahead with the strike, which would severely disrupt annual university entrance exams.

In central Athens, striking farmer's market vendors handed out fruit and vegetables for free to hundreds of consumers. On Thursday, air traffic controllers plan to ground all flights for four hours from midday.