Our latest play on gold is a bit speculative, but in my view, this miner has an excellent risk-to-reward profile, asserts Jack Adamo, editor of Insiders Plus.
Mining is an inherently lumpy business, with year-to-year results less predictable and more subject to risk than most other industries.
Quarterly results are a real crap-shoot. With that in mind, let's examine the good and bad points at Eldorado Gold Corp. Ltd. (EGO).
Eldorado has mines in Greece, Turkey, Brazil, China, and Romania. However, as of year-end 2012, 53% of production came from Turkey and 45% from China.
The others are in development and their production made up only about 2% of the company's total. Overall, I'm satisfied with Eldorado's geographical profile.
The mines in Greece are thought to be particularly promising. Ore grades vary radically between mines, even in the same country, with assessed mineralization of less than a gram per tonne in one Turkish mine and nearly eight g/t in another.
Top Low Price Stocks To Watch Right Now: Newcastle Investment Corp (NCT)
Newcastle Investment Corp. (Newcastle) is a real estate investment and finance company. Newcastle invests in, and actively manages, a portfolio of, real estate securities, loans, excess mortgage servicing rights (MSRs) and other real estate related assets. The Company segments include unlevered CDOs, which include unlevered investments in deconsolidated Newcastle CDO debt; unlevered excess MSRs; non-recourse other, which includes investments financed with other non-recourse debt; recourse, which includes investments and debt repurchases financed with recourse debt; unlevered other, which includes other unlevered investments, and corporate. In April 2011, Newcastle sold its retained interests in Newcastle CDO VII, a non-consolidated VIE of Newcastle. On May 15, 2013, the Company announced the spin-off of New Residential Investment Corp. In June 2013, Newcastle Investment Corp completed the sale of 100% of the assets in Newcastle CDO IV.
Real Estate Securities
Newcastle underwrite, acquire and manage a portfolio of credit sensitive real estate securities, including commercial mortgage backed securities (CMBS), senior unsecured real estate investment trust (REIT) debt issued by REITs, real estate related asset backed securities (ABS), including subprime securities, and Federal National Mortgage Association (FNMA)/ Federal Home Loan Mortgage Corp. (FHLMC) securities. As of December 31, 2011, the Company�� real estate securities represented 47.4% of its assets.
Real Estate Related Loans
Newcastle acquires and originates loans to real estate owners, including B-notes, mezzanine loans, corporate bank loans, and whole loans. As of December 31, 2011, the Company�� real estate related loans represented 22.3% of its assets.
Residential Mortgage Loans
Newcastle acquires residential mortgage loans, including manufactured housing loans and subprime mortgage loans. As of December 31, 2011, the Company�� residential mortgage loans rep! resented 9.1% of its assets.
Operating Real Estate
Newcastle acquires and manages direct and indirect interests in operating real estate. As of December 31, 2011, the Company�� operating real estate represented 0.9% of its assets.
Excess Mortgage Servicing Rights
Newcastle invested in excess MSRs in December 2011. As of December 31, 2011, the Company�� interests in these rights represented 1.2% of its assets.
Advisors' Opinion:- [By Eric Volkman]
Newcastle Investment (NYSE: NCT ) shareholders will find a little less money in their pockets following a reduction in the company's common stock dividend. A fresh quarterly payout of $0.17 per share will be handed out on July 31 to shareholders of record as of June 13. That amount is a nickel lower than the firm's previous distribution of $0.22 per share. The upcoming payout, however, will be the first one since Newcastle completed the divestment of onetime subsidiary New Residential Investment.
Top 10 Promising Stocks To Watch For 2014: United Rentals Inc.(URI)
United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It offers approximately 3,000 classes of equipment for rent to customers comprising construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The company?s fleet of rental equipment includes general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms consisting of boom lifts and scissor lifts; and general tools and light equipment, including pressure washers, water pumps, generators, heaters, and power tools. Its fleet also comprise trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; and power and heating, ventilating, and air conditioning (HVAC) equipment, which consists of portable diesel generators, electrical distribution equipment, and temperature control equipment, including heating and cooling equipment. In addition, the company sells new and used equipment, as well as related contractor supplies, parts, and service; and offers repair, maintenance, and rental protection services. Further, it develops and markets RENTALMAN, an enterprise resource planning application for equipment rental companies; and INFOMANAGER, which offers solution for creating a business intelligence system. As of January 1, 2012, the company had an integrated network of 529 rental locations in the United States and Canada. United Rentals, Inc. was founded in 1997 and is headquartered in Greenwich, Connecticut.
Advisors' Opinion:- [By Ben Levisohn]
Like many companies this year, United Rentals (URI) announced an acquisition and saw its shares price pop.
ASSOCIATED PRESSReuters has the details on United Rentals’ big buy:
United Rentals Inc, the world’s largest equipment rental company, said on Sunday it had agreed to acquire privately held National Pump, the second-largest specialty pump rental company in North America, for $780 million.
The deal marks United Rentals’ foray into the pump rental sector, which is benefiting from increased demand from energy and petrochemical companies tapping into the shale gas boom in the United States. Upstream oil and gas customers account for about half of National Pump’s revenue.
Citigroup’s Timothy Thein and Saree Boroditsky like the deal:
We see the announced acquisition of National Pump, the second largest pump specialty rental company in NA (with ~15% share), and related assets, to be a positive on many fronts. It expands�[United Rentals'] presence in to the high margin, high ROA specialty rental market (19% of pro-forma sales), evidenced by National�� high dollar utilization (80%, vs. 47% for URI) and EBITDA margins. With ~65% of National�� sales coming from Oil&Gas and Petrochem markets, the deal gives URI added exposure to two powerful secular trends (US energy independence and manufacturing ��enaissance��, which helps support above-avg growth potential for this category ([United Rentals] ests ~9% LT growth). We think the 6.5x EBITDA multiple (7.6x adj. EBITDA excluding cash tax savings) is reasonable given the attractive margins / return profile, and the fact that it provides synergy opportunities and a strong base off which�[United Rentals] can grow ([United Rentals] plans to double the size of the pump business within five years). Deal expected to be accretive to FCF and EPS in ��4 (closing anticipated early 2Q14). Lastly, we would suspect this deal takes�[United Rentals] out
- [By Heather Long]
Some of the stocks he likes now include: Illumina (ILMN), Alexion Pharmaceuticals (ALXN), Actavis (ACT), and United Rentals (URI). All of these are up more than 20% this year with Illumina up over 50%.
- [By Rick Munarriz]
I went out on a limb last week, and now it's time to see how that decision played out.
I predicted that People's United Financial (NASDAQ: PBCT ) would close higher on the week. The regional banker had come up short on the bottom line in its two previous quarters, and the prior week closed with uninspiring earnings news out of the banking behemoths. People's United managed to match expectations on an operating basis, but the market was skeptical of financial services institutions this week. People's United Financial shares closed lower on the week. I was right. I predicted that the tech-heavy Nasdaq would outperform the Dow Jones Industrial Average. (DJINDICES: ^DJI ) . This has been a tricky call lately, so how did it play out this time? Well, the market was rocked hard this week, and secondary stocks led the way down. The Nasdaq fell 2.7% on the week. The Dow managed to close just 2.1% lower. I was wrong. My final call was for United Rentals (NYSE: URI ) to beat Wall Street's quarterly profit target. The provider of equipment rentals with 836 outlets across the country has been beating Wall Street estimates consistently over the past year. Why should that end? Analysts were looking for a profit of $0.47 a share during the quarter, and it came through with adjusted net income of $0.58. I was right.Two out of three? I can do better than that.
- [By Peter Graham]
The Q2 2014 earnings report for equipment rental stock United Rentals, Inc (NYSE: URI), a peer or competitor of Essex Rental Corp (NASDAQ: ESSX) and H&E Equipment Services, Inc (NASDAQ: HEES), is scheduled for after the market closes on Wednesday. Aside from the United Rentals earnings report, it should be said that the Essex Rental Corp reported Q4 2013 earnings on May 7th while the estimated release date for the H&E Equipment Services, Inc Q2 2014 earnings report is August 4th. However, United Rentals��shares rose after its last earnings report plus analysts have issued bullish research notes since then.
Top 10 Promising Stocks To Watch For 2014: Hersha Hospitality Trust (HT)
Hersha Hospitality Trust, a real estate investment trust, engages in the ownership and operation of mid scale limited service hotels in the Eastern United States. As of June 30, 2005, it owned interests in 35 hotels, including 4 hotels owned through joint ventures in Pennsylvania, New York, New Jersey, Maryland, Georgia, Connecticut, and Massachusetts. The company has elected to be taxed as a REIT under the Internal Revenue Code. As a REIT, Hersha would not be subject to income tax to the extent it distributes at least 90% of its taxable income to its stockholders. The company was founded in 1998 and is headquartered in New Cumberland, Pennsylvania.
Advisors' Opinion:- [By Markus Aarnio]
American Hotel Income Properties' competitors include Hospitality Properties Trust (HPT), RLJ Lodging Trust (RLJ), and Hersha Hospitality Trust (HT).
- [By George Putnam]
Steve Halpern: Now, you've also looked at a company called Hersha Hospitality (HT). How are they involved in the industry?
George Putnam: Well, Hersha, again, has been refocusing its business. It was a little unfocused before. It had both a suburban and urban market, and it's recently agreed to sell the last of its suburban properties.
Top 10 Promising Stocks To Watch For 2014: Oncolytics Biotech Inc (ONCY)
Oncolytics Biotech Inc. (Oncolytics), incorporated on April 2, 1998, is a development-stage company. The Company is focused on its research and development of REOLYSIN, which is its cancer therapeutic. REOLYSIN is developed from the reovirus. This virus has been demonstrated in tumour cells bearing an activated Ras pathway. Oncolytics is directing a clinical trial program with the focus of developing REOLYSIN as a human cancer therapeutic. The clinical program includes clinical trials, which it sponsors directly along with Third Party Clinical Trials. Third Party Clinical Trials are clinical trials that are being sponsored by other institutions. As of December 31, 2011, the United States National Cancer Institute (NCI), the University of Leeds and the Cancer Therapy & Research Center at the University of Texas Health Center in San Antonio (CTRC) were sponsoring part of its clinical trial program.
The Company�� clinical trial program has included human trials using REOLYSIN alone, and in combination with radiation and chemotherapy, and delivered via local administration and/or intravenous administration. Oncolytics uses contract toll manufacturers to produce REOLYSIN. On December 31, 2011, the Company had two wholly owned subsidiaries, Oncolytics Biotech (Barbados) Inc. (OBB) and Valens Pharma Ltd. Oncolytics Biotech (US) Inc. and Oncolytics Biotech (U.K.) are wholly owned subsidiaries of OBB.
Advisors' Opinion:- [By John Udovich]
The biotech sector along with small cap biotech stocks Cardiome Pharma Corp (NASDAQ: CRME), Oncolytics Biotech, Inc (NASDAQ: ONCY), Vital Therapies Inc (NASDAQ: VTL) and TNI BioTech (OTCMKTS: TNIB) have all been producing their share of news this week for investors and traders alike to trade on. Moreover and while some 42 ��ife sciences��companies have gone public raising about $3 billion from investors so far this year, there are a growing number of biotechs pulling the plug on upcoming IPOs who are citing market conditions. With that in mind, here is a look at important news from the biotech sector and small cap biotech stocks this week:
- [By Maxx Chatsko]
T-VEC is not your traditional biologic drug. It is actually a bioengineered form of the herpes virus that, once injected into cancerous tumors, replicates, and produces an immune-stimulating protein that puts a bulls eye on cancer cells throughout the body. Despite its promise and intriguing mechanism of action, T-VEC is not in further development at Amgen. However, Oncolytics (NASDAQ: ONCY ) has shown promising results for its bioengineered form of reovirus called Reolysin. Initial phase 3 results showed that 86% of patients taking the drug had reduced tumor mass or growth after six weeks of treatment. �
- [By Sean Williams]
With this in mind, I feel it'd be prudent of biotech-savvy investors to give Oncolytics Biotech (NASDAQ: ONCY ) a closer look.
The big risks
I'm quite aware that there are a lot factors that'd raise a red flag with Oncolytics. Similar to Affymax, you could say that Oncolytics has put all of its eggs in one basket with its lead experimental drug, reolysin. According to Oncolytics' website, including its U.K., Canadian, and U.S. studies, reolysin as either a monotherapy or combination therapy is the basis for all 31 clinical trials! Obviously, if reolysin proves ineffective or unsafe, Oncolytics is going to be a world of hurt.
Top 10 Promising Stocks To Watch For 2014: Aqua America Inc.(WTR)
Aqua America, Inc., through its subsidiaries, operates regulated utilities that provide water or wastewater services in the United States. The company serves residential, commercial, fire protection, industrial, and other water and wastewater customers in Pennsylvania, Texas, North Carolina, Ohio, Illinois, New Jersey, New York, Florida, Indiana, Virginia, Maine, Missouri, and Georgia. It also provides water and wastewater services through operating and maintenance contracts with municipal authorities and other parties, as well as sludge hauling, septage and grease services, and backflow prevention services. The company was formerly known as Philadelphia Suburban Corporation and changed its name to Aqua America, Inc. in 2004. Aqua America, Inc. was founded in 1968 and is based in Bryn Mawr, Pennsylvania.
Advisors' Opinion:- [By David Dittman]
Note that water utilities and UF Portfolio Holdings American Water Works Co Inc (NYSE: AWK), Aqua America Inc (NYSE: WTR) and Connecticut Water Service Inc (NSDQ: CTWS) posted 2013 total returns of 16.1 percent, 18.8 percent and 23.1 percent, respectively, underperforming the broader S&P 500 but besting the traditional safe-haven subgroups.
- [By Vita Nelson]
Our latest featured dividend reinvestment idea is Aqua America (WTR). Founded in 1968, and headquartered in Bryn Mawr, Pennsylvania, Aqua America operates regulated utilities that provide water or wastewater services in the United States.
- [By Sean Williams]
The first big risk for American Water Works and the water utility sector as a whole is the need for infrastructure and maintenance upgrades. The downside of expanding into new territories and picking up new customers is that pipe, sewer, and storage tank maintenance is needed just to keep operations running. American Water Works' primary rival, Aqua America (NYSE: WTR ) , spent $1.4 billion in maintenance and upgrades alone between 2007 and 2011. American Water Works, by contrast, will spend $950 million just in 2013 for maintenance and upgrades. These costs are already painful to begin with, but when capex costs are unexpected it can negatively impact a water utility's bottom line.
Top 10 Promising Stocks To Watch For 2014: Xoom Corp (XOOM)
Xoom Corporation (Xoom), incorporated on October 10, 2012, is engaged in online international money transfer service. Its customers use Xoom to send money to family and friends in 30 countries. The Company generates revenue from transaction fees charged to customers and from foreign exchange spreads on transactions where the payout currency is other than United States dollars. In February 2014, Xoom Corp acquired BlueKite, LTD, a technology company that develops solutions and applications.
The Company�� solutions are designed to offer customers a convenient, fast and cost-effective way to send money to family and friends at any time, from any Internet-enabled location. The Company�� solutions include Origination, Funding, Disbursement and Transaction Processing.
Advisors' Opinion:- [By Zacks Investment Research]
Xoom (XOOM) is also a Zacks Rank #2 (Buy) stock that IPO'ed this year. The stock zoomed higher by a healthy 60% on its first day of trading. The online international money transfer service has been public since February 15 and had an offering price of $16 per share.
- [By Jake L'Ecuyer]
Equities Trading UP
Xoom (NASDAQ: XOOM) shares shot up 15.58 percent to $22.77 after the company reported upbeat Q1 results and issued a strong FY14 outlook. - [By Alex Planes]
What: Shares of Xoom (NASDAQ: XOOM ) have rocketed higher today and are now sitting 15% above yesterday's close after obliterating analyst estimates with strong earnings.
Top 10 Promising Stocks To Watch For 2014: American Science and Engineering Inc.(ASEI)
American Science and Engineering, Inc., together with its subsidiaries, develops, manufactures, markets, and sells X-ray inspection and other detection products for detection and security screening solutions in the United States and internationally. It offers cargo inspection systems comprising non-intrusive inspection products, which are primarily used for the screening of trucks, cars, cargo containers, pallets, and air cargo at border crossings, seaports, military bases, airports, and cargo and transportation hubs. The cargo inspection systems include OmniView gantry system, a cargo and vehicle inspection system; Z Portal system, a drive-through inspection system for scanning cargo and vehicles; Z Gantry system, a Z Backscatter inspection system for scanning cars, vans, trucks, and their cargo; Sentry Portal system, a drive through transmission X-ray inspection system; and MobileSearch High-Energy, a mobile inspection system for scanning trucks, cargo containers, and ve hicles. The company also provides Z Backscatter systems, including Z Backscatter Van, a mobile X-ray screening system to produce photo-like images of plastic explosives or other anomalies; and ZBV Military Trailer, a rugged X-ray screening system built on military trailer. In addition, it offers parcel and personnel screening inspection system that comprises Gemini system, a parcel and baggage inspection system; and SmartCheck system, a personnel screening system for screening threats hidden under a person?s clothing. Further, the company provides contract research and development programs for agencies of the United States government; and maintenance, warranty, engineering, and training services. It serves authorities responsible for port and border security, customs agencies, military organizations, high threat commercial and government facilities, aviation security agencies, and law enforcement agencies. The company was founded in 1958 and is headquartered in Billerica, M assachusetts.
Advisors' Opinion:- [By John Udovich]
Last Friday�� shooting incident at LAX highlighted the need to keep airports and other public places secure���something that small cap airport security stocks like�American Science & Engineering, Inc (NASDAQ: ASEI), Analogic Corporation (NASDAQ: ALOG), OSI Systems, Inc (NASDAQ: OSIS) and View Systems Inc (OTCBB: VSYM) do already. In the LAX shooting incident, its still not clear what the shooter�� motive was beyond signs that he was�suffering from some�kind of mental illness or breakdown. In other words, preventing such attacks in the future (beyond identifying those with mental illness on the verge of snapping) will continue to be difficult as the incident also happened outside of the airport security zone. �
- [By Rich Smith]
An unidentified "government agency" has awarded American Science & Engineering (NASDAQ: ASEI ) a $60 million contract to supply X-ray inspection systems, the company (partially) revealed Tuesday.
- [By James E. Brumley]
For tech-savvy investors who know which companies make them, when they hear the words "weapons detection" or "body scanners", they tend to think of companies like American Science & Engineering, Inc. (NASDAQ:ASEI) and OSI Systems, Inc. (NASDAQ:OSIS). And well they should. OSIS and ASEI are two of the biggest North American providers of the kind of equipment you might see being used by airport security personnel screening passengers before allowing them to their gate. There's just one challenge in the average school system tapping OSI Systems or American Science & Engineering to help defend their school grounds.... their hardware starts with a six-figure price tag, and rapidly works its way up to higher-capacity and more powerful versions. For a school with multiple doors, it's simply not feasible. View Systems Inc. is a viable alternative.
- [By James E. Brumley]
While it's tragic that it took a string of tragedies to make school safety and security a priority in the United States, it can't be denied that the topic has been put front and center - school systems everywhere are asking themselves tough questions, mainly focusing on what can be done quickly and cost-effectively to secure school buildings. Part of that discussion has put companies like OSI Systems, Inc. (NASDAQ:OSIS), American Science & Engineering, Inc. (NASDAQ:ASEI), and View Systems Inc. (OTCBB:VSYM) in the limelight. The three organizations all make security screening and weapons detection systems. If you've flown from anywhere inside the United States anytime since 2003, odds are pretty good you or your luggage passed through equipment made by ASEI or OSIS.
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