Good news for Detroit: Full-size truck sales are up 23% in the first quarter and are approaching levels not seen since the recession tanked U.S. vehicle sales. Detroit's Big Three automakers -- Ford (NYSE: F ) , General Motors (NYSE: GM ) and Chrysler -- completely dominate this market and have accounted for 93% of full-size truck sales this year through March. And Detroit wants to keep it this way, since the majority of its profits come from this segment.
They'll have to keep an eye on Toyota (NYSE: TM ) , which is trying to make a push with its 2014 Tundra to increase its 5.4% market share. In the past, Toyota has had very little success taking share away from Detroit, but this year could be different, as the new Tundra rolls out in the fall. Here's what investors need to know.
Source: Toyota.
Abolished tariffs
During the recent Trans-Pacific Partnership trade negotiations, the U.S. government agreed to gradually abolish all tariffs currently in place on Japanese vehicles entering the U.S. market, including the 2.5% tariff on each vehicle brought in and 25% on every truck. In an industry that has margins in the single digits, those tariffs can mean a huge difference in profitability and vehicle pricing.
Top 5 Defensive Companies To Watch In Right Now: Brown Shoe Company Inc. (BWS)
Brown Shoe Company, Inc., a footwear company, engages in the retail and wholesale of footwear. It operates through Famous Footwear, Wholesale Operations, and Specialty Retail segments. The company provides licensed, branded, and private-label casual, dress, and athletic footwear products to women, men, and children. It operates retail shoe stores under the Famous Footwear name that offer shoes of various brands, including Nike, Skechers, New Balance, Converse, adidas, DC, LifeStride, Reebok, Sperry, Asics, Puma, Dr. Scholl�s Shoes, Vans, BOC by Born, Sof Sole, Fergalicious, and Bearpaw. The company also operates shoe stores under the Naturalizer name, which provide women�s footwear, including casual, dress, sandals, and boots under the Naturalizer brand; operates retail stores under Dr. Scholl�s Shoes and Sam Edelman names; and sells its products through Internet retail that include Shoes.com, Famous.com, Naturalizer.com, Naturalizer.ca, and DrSchollsShoes.com, as well as ViaSpiga.com, LifeStride.com, and Ryka.com. As of February 2, 2013, it operated 1,277 retail shoe stores in the United States, Canada, China, and Guam. In addition, the company designs, sources, and markets footwear to retail stores, such as national chains, department stores, independent retailers, mass merchandisers, online retailers, and catalogs. Brown Shoe Company, Inc. was founded in 1878 and is headquartered in St. Louis, Missouri.
Advisors' Opinion:- [By Chris Dieterich]
What about apparel companies and retailers? Morgan Stanley likes companies that target brands that are most popular with “lower-income consumers,” who they deem as most likely to put the money they save into new purchases. Analysts like The Children�� Place (PLCE), Foot Locker (FL), Finish Line (FINL), Brown Shoe (BWS), and Skullcandy (SKUL). The same applies for retailers including Aeropostale (ARO) Burlington Stores (BURL) and Ross Stores (ROST).
- [By Rich Duprey]
Global footwear maker�Brown Shoe� (NYSE: BWS ) �announced yesterday�its second-quarter dividend of $0.07 per share, the same rate it's paid since 2007.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Brown Shoe (NYSE: BWS ) , whose recent revenue and earnings are plotted below.
Top 10 Japanese Stocks To Own For 2014: Templeton Emerging Markets Fund (EMF)
Templeton Emerging Markets Fund (the Fund) is a diversified, closed-end investment company. The Fund seeks long-term capital appreciation by investing at least 80% of its net assets in emerging country equity securities. It makes investments in China, Brazil, South Korea, Turkey, Russia, Thailand, India, Taiwan, Hungary and South Africa. The Fund invests in sectors, such as metals and mining, commercial banks, diversified financial services, semiconductors and semiconductor equipment, wireless telecommunication services, and oil, gas and consumable fuels.
Templeton Asset Management Ltd. (TAML) serves as the Fund�� investment manager. Its administrative manager is Franklin Templeton Services, LLC. The Fund may invest in the Franklin Institutional Fiduciary Trust Money Market Portfolio (the Sweep Money Fund), an open-end investment company managed by Franklin Advisers, Inc. (an affiliate of TAML).
Advisors' Opinion:- [By George Putnam, Editor, New Generation Research, Inc.]
Templeton Emerging Markets Fund (EMF) is also actively managed. Currently, the fund is Asian-centric with about 71% of assets from Asian markets, mostly China and Thailand.
Top 10 Japanese Stocks To Own For 2014: Ram Resources Ltd (RMR)
Ram Resources Limited is an Australia-based company. The Company is engaged in exploration of mineral properties in Greenland and Western Australia. The Company�� Motzfeld Project is located in South Greenland, some 24 kilometers from the town of Narsarsuaq and comprises exploration licences 2010/46 and 2011/24. The Company holds 51% interest in the Motzfeldt project. The Romney (EL 2010/46) located in the Lejrelev Valley about 3.5 kilometers to the west of the Aries prospect. The Merino forms a steep-sided ridge at the north-eastern end of this valley, about 2.5 kilometers to the north-north-west of Aries. The Company�� Voskop Prospect is located within Exploration Licence 2011/24 in the Storeelv Valley about 7 kilometers to the northwest of the Company�� Aries target. The Drysdale Prospect is located on top of a broad ridge about 7.5 kilometers southeast of Aries and at an elevation of about 1,600 meter. Advisors' Opinion:- [By Chris DeMuth Jr.]
To use a recent REIT example, take CommonWealth REIT. This is a large well established REIT that is valued in the market with one of the lowest multiples of FFO in the industry. The reason the company trades at a multiple roughly half its competitors, in my opinion, is the poorly aligned management incentive structure. The management of CommonWealth is contracted to an external management firm, Reit Management Research (RMR). Many of the trustees of CommonWeath are owners of RMR and serve on both boards. RMR is primarily compensated by growing CWH's assets which are under RMR's management, not on stock price, FFO, or anything else that is closely aligned to generating shareholder returns. This has the perverse effect of motivating them to issue lots of equity and buy lots of buildings irrespective of the value add to CommonWealth shareholders. Neither the management company nor its employees have a significant amount of their income based on the performance of CommonWealth's stock price. This has resulted in an activist, Corvex Capital, buying a significant position in the company and taking action to replace the board and the management team. The proxy advisory firm, ISS, has sided with the activist and recommended that shareholders vote out the current trustees. ISS notes, "Between 2007-2012 …while the CommonWealth management team increased assets by 198% of period-ending market cap - driving a significant increase in fees payable to management - Commonwealth's share price - the measure of value appreciation for shareholders - fell by 68%." This is the poster child of misaligned management incentives.
Top 10 Japanese Stocks To Own For 2014: Elite Pharmaceuticals Inc (ELTP)
Elite Pharmaceuticals, Inc. (Elite), incorporated on October 1, 1997, is a specialty pharmaceutical company principally engaged in the development and manufactures of oral, controlled-release products, using technology and the development and manufacture of generic pharmaceuticals. Elite has four products: Phentermine 37.5 milligram tablets, Methadone 10 milligram tablets, Lodrane D Immediate Release capsules and Hydromorphone Hydrochloride 8 milligram tablets. During the fiscal years ended March 31, 2012 (Fiscal 2011), the Company manufactured and sold Lodrane 24 and Lodrane 24D (the Lodrane Extended Release Products).
The Company has a pipeline of additional generic drug candidates under active development, including, without limitation, ELI-154, a once-a-day oxycodone product and ELI-216, an abuse resistant oxycodone product which utilizes the Company�� propriety formulation for abuse resistant products utilizing the pharmacological approach (Elite�� Abuse Resistant Technology). ECR Pharmaceuticals (ECR), a wholly owned subsidiary of Hi-Tech Pharmacal, Inc. and the owner and marketer of the Lodrane Extended Release Products. Elite also purchased from Mikah Pharma LLC, an approved Abbreviated New Drug Application (ANDA) for Naltrexone 50 milligram tablets.
For ELI-154, Elite has developed a once-daily oxycodone formulation using its technology. An investigational new drug application (IND) has been filed and Elite has completed two pharmacokinetic studies in healthy subjects that compared blood levels of oxycodone from dosing ELI-154 and the twice-a-day product that is on the market, OxyContin marketed in the United States by Purdue Pharma LP. ELI-216 utilizes the Company's abuse-deterrent technology that is based on a pharmacological approach. ELI-216 is a combination of a narcotic agonist, oxycodone hydrochloride, in a sustained-release formulation intended for use in patients with moderate to severe chronic pain, and an antagonist, naltrexone hydrochloride, formulat! ed to deter abuse of the drug. Products utilizing the pharmacological approach to deter abuse such as Suboxone, a product marketed in the United States by Reckitt Benckiser Pharmaceuticals, Inc., and Embeda, a product marketed in the United States by Pfizer, have been approved by the United States Food & Drug Administration (FDA). ELI-216 demonstrates a euphoria-blocking effect when the product is crushed. Elite has developed ELI-154 and ELI-216 and retains the rights to these products.
The Company competes with Collegium Pharmaceuticals, Inc., Purdue Pharma LP, Acura Pharmaceuticals, Inc., Durect Corporation, Mylan Laboratories, Inc., Par Pharmaceuticals, Inc., Alkermes, Inc., Teva Pharmaceuticals Industries Ltd., Aptalis Pharma, Impax Laboratories, Inc., and Watson Pharmaceuticals.
Advisors' Opinion:- [By James E. Brumley]
Judging from the company it's keeping Green Automotive Co. (OTCMKTS:GACR) may have just made its way into the upper echelon of small cap stock opportunities. The electric car company joins Elite Pharmaceuticals Inc. (OTCBB:ELTP), Amarantus Bioscience Holdings, Inc. (OTCBB:AMBS), and only three other companies as Wall-Street.com's "Best 6 Stocks" for January of 2014. As one of the top information resources for investors - particularly in terms of information regarding small and micro cap stocks - being named among the site's top pick is an accolade for AMBS, ELTP, and GACR. Even more impressive is that Green Automotive Co. was the only consumer-goods name among those six. Amarantus Bioscience Holdings and Elite Pharmaceuticals are biotechnology names... an industry that can and often does attract a lot of attention just by the nature of the business. The other three names making the "Best 6" list were an energy explorer, a power-management technology manufacturer, and prescription/medical food producer. For an electric car manufacturer to make the list speaks quite highly of GACR.
- [By CRWE]
Today, ELTP has shed (-8.01%) down -0.009 at $.101 with 4,629,899 shares in play thus far (ref. google finance Delayed: 1:00PM EDT September 16, 2013).
Elite Pharmaceuticals, Inc. previously reported the first quarter of fiscal year 2014 ended June 30, 2013. Manufacturing and profit split revenues comprised almost all of Elite’s quarterly revenues and totaled $717k for the quarter, an increase of 41% from the prior year. This growth is attributed to the launch of two new products during the quarter, Phentermine 15mg and 30mg capsules, combined with strong year-on-year growth of the Elite’s Hydromorphone 8mg tablets and contract manufactured Methadone 10mg product lines.
- [By James E. Brumley]
Exactly one month ago today I penned some bullish thoughts on Elite Pharmaceuticals Inc. (OTCBB:ELTP). If you're familiar with the company - or a regular reader of this site - then you may know why that sounds a little "off." See, at the time, ELTP shares were falling rather quickly, giving up all the gains they had made just a few days before. Almost needless to say, my premise was not a well received one. Let's just say I received some "colorful disagreements" by being optimistic about the biopharma company.
Top 10 Japanese Stocks To Own For 2014: Primerica Inc.(PRI)
Primerica, Inc., together with its subsidiaries, engages in the distribution of financial products on behalf of third parties to middle income households in the United States and Canada. The company operates in three segments: Term Life Insurance, Investment and Savings Products, and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites term life insurance products. The Investment and Savings Products segment distributes mutual funds, variable annuities, fixed annuities, and segregated funds. The Corporate and Other Distributed Products segment provides mortgage loans, which include debt consolidation or refinance, and purchase money loans; unsecured loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters; mail-order student life products; short-term disability benefit insurance; and auto and homeowners? insurance products. The company was founded in 1927 and is based in Duluth, Georgia.
Advisors' Opinion:- [By Rich Duprey]
Private equity investor Warburg Pincus has been a shareholder in term life insurance underwriter Primerica� (NYSE: PRI ) since its IPO in 2010. However, the financial products marketer will be buying back all of the holdings Warburg Pincus owns for $154.7 million. That translates into�almost�2.5 million shares of common stock�and warrants that �are�exercisable for 4.1 million shares.
Top 10 Japanese Stocks To Own For 2014: ServiceSource International Inc.(SREV)
ServiceSource International, Inc. manages the service contract renewals process of maintenance, support and subscription agreements for technology and technology-enabled healthcare, and life sciences companies. The company provides end-to-end management and optimization of the service contract renewals process, including data management, quoting, selling, and service revenue business intelligence. It offers an integrated solution that consists of Service Revenue Intelligence Platform, a data warehouse of transactional, analytical, and industry data that provides insight into the business; service sales teams working under its customers? brands; and Service Revenue Performance Suite, a suite of cloud applications. The company?s cloud applications include Analytics Cloud, which provides customers with dashboards to view and analyze service revenue performance; Service Sales Cloud that provides renewals analytics and pipeline management used by service sales teams; and Chan nel Sales Cloud, which offers channel partners and resellers with online access to their specific renewals opportunities and their performance. Its cloud applications also comprise eCommerce Cloud that provides self-service capabilities to end customers through a secure online portal; Installed Base Intelligence Cloud, which offers a single repository to analyze the data, to flag anomalies and missing data elements, and to identify cross-sell and up-sell opportunities; and Dynamic Quoting Cloud that provides an easy-to-use tool for sales representatives and channel partners to create and modify service renewal quotes. The company sells its solutions directly through sales representatives in North America, Latin America, Europe, the Middle East, Africa, the Asia Pacific, and Japan. ServiceSource International, Inc. was founded in 2002 and is headquartered in San Francisco, California with additional offices in Colorado, Tennessee, Ireland, the United Kingdom, Malaysia, and Si ngapore.
Advisors' Opinion:- [By Evan Niu, CFA]
What: Shares of ServiceSource (NASDAQ: SREV ) have soared by as much as 24% today after the company reported first-quarter earnings.
So what: Revenue in the first quarter totaled $61.1 million, higher than the $60.4 million consensus estimate. The non-GAAP net loss of $1.5 million, or $0.02 per share, was also better than the $0.04-per-share loss that investors were expecting. The company inked four new Renew OnDemand subscription deals during the quarter.
- [By Jake L'Ecuyer]
ServiceSource (NASDAQ: SREV) shares were also down, falling 32.48 percent to $4.22 as the company missed on earnings and caught a downgrade from CLSA from Buy to Underperform.
Top 10 Japanese Stocks To Own For 2014: Makism 3D Corp (MDDD)
Makism 3D Corp., incorporated on May 4 2010, is a three dimensional (3D) printer manufacturing company. The Company produces consumer and professional grade 3D printers. The Company�� flagship product, branded as the Wideboy family of printers, offers packaging designed to fit any office or professional space.
Its 3D printers utilize British and German engineered components. Its printers are assembled in Cambridge (United Kingdom).
Advisors' Opinion:- [By John Udovich]
We are two trading weeks into the new year and the 3D printing sector along with 3D printer stocks like ExOne Co (NASDAQ: XONE), Stratasys, Ltd (NASDAQ: SSYS),�3D Systems Corporation (NYSE: DDD) and Makism 3D Corp (OTCBB: MDDD) have been printing their share of red ink for investors���despite the fact that 3D printing got� plenty of attention at�last week's�Consumer Electronics Show in Las Vegas while the�broader stock market rally has largely held up. With that in mind, here is the latest 3D printer stock or sector news you need to be aware of:
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