4 Stocks Breaking Out on Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

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Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."



Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.



With that in mind, let's take a look at several stocks rising on unusual volume recently.

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Clearfield

Clearfield (CLFD) manufactures, markets and sells standard and custom passive connectivity products to the fiber-to-the-premises, large enterprises and original equipment manufacturers markets in the U.S. This stock closed up 3.4% to $14.30 in Wednesday's trading session.

Wednesday's Volume: 217,000

Three-Month Average Volume: 94,866

Volume % Change: 175%

From a technical perspective, CLFD jumped higher here right above some near-term support at $13.32 with strong upside volume flows. This trend to the upside on Wednesday is quickly pushing shares of CLFD within range of triggering a major breakout trade. That trade will hit if CLFD manages to take out some key near-term overhead resistance levels at $14.42 to around $15 with high volume.

Traders should now look for long-biased trades in CLFD as long as it's trending above some key near-term support at $13.32 or above its 50-day at $13.03 and then once it sustains a move or close above those breakout levels with volume that hits near or above 94,866 shares. If that breakout triggers soon, then CLFD will set up to re-fill some of its previous gap-down-day zone from July that started just above $16. If that gap gets filled with volume, then shares of CLFD can easily tag its next major overhead resistance levels at $16.66 to its 200-day at $17.50.

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C&J Energy Services

C&J Energy Services (CJES), through its subsidiaries, provides hydraulic fracturing, coiled tubing, wireline and other complementary services to oil and gas exploration and production companies in the U.S. This stock closed up 5.3% to $18.97 in Wednesday's trading session.

Wednesday's Volume: 3.01 million

Three-Month Average Volume: 1.29 million

Volume % Change: 195%

From a technical perspective, CJES ripped higher here right above its new 52-week low of $17.32 with strong upside volume flows. This stock has been downtrending badly for the last month, with shares crashing from its high of $31.53 to its recent low of $17.32. During that move, shares of CJES have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of CJES have now started to rebound off that $17.32 low and it's starting to move within range of triggering a big breakout trade. That trade will hit if CJES manages to take out Wednesday's intraday high of $19.56 to around $21, and then once it clears $21.49 to $21.58 with high volume.

Traders should now look for long-biased trades in CJES as long as it's trending above Wednesday's intraday low of $17.95 or above its new 52-week low of $17.32 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.29 million shares. If that breakout hits soon, then CJES will set up to re-test or possibly take out its next major overhead resistance levels at around $23 to $25, or even its 50-day moving average of $25.81.

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Inphi

Inphi (IPHI) provides high-speed analog and mixed signal semiconductor solutions for the communications, datacenter and computing markets worldwide. This stock closed up 5.1% at $15.20 in Wednesday's trading session.

Wednesday's Volume: 1.04 million

Three-Month Average Volume: 226,643

Volume % Change: 402%

From a technical perspective, IPHI ripped sharply higher here right off both its 50-day moving average at $14.42 and its 200-day at $14.40 with monster upside volume flows. This move briefly pushed shares of IPHI into breakout territory, since the stock flirted with or took out some near-term overhead resistance levels at $14.95 to $15.45. Shares of IPHI tagged an intraday high of $15.89, before it closed just off that level at $15.20. Market players should now look for a continuation move to the upside in the short-term if IPHI manages to clear Wednesday's intraday high of $15.89 with high volume.

Traders should now look for long-biased trades in IPHI as long as it's trending above its 200-day at $14.40 or above more near-term support at $14 and then once it sustains a move or close above $15.89 with volume that hits near or above 226,643 shares. If that move gets started soon, then IPHI will set up to re-test or possibly take out its 52-week high at $17.17. Any high-volume move above $17.17 will then give IPHI a chance to tag $20.

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Wright Medical Group

Wright Medical Group (WMGI), a specialty orthopaedic company, provides extremity and biologic solutions that enable clinicians to alleviate pain and restore their patients lifestyles. This stock closed up 3.1% to $32.32 in Wednesday's trading session.

Wednesday's Volume: 3.96 million

Three-Month Average Volume: 700,826

Volume % Change: 444%

From a technical perspective, WMGI ripped higher here right above its 50-day at $30.80 and its 200-day at $30.74 with strong upside volume flows. This move briefly pushed shares of WMGI into breakout territory, since the stock flirted with some key overhead resistance at $32.57. Shares of WMGI tagged an intraday high of $32.65, before it closed just below that level at $32.32. This move higher on Wednesday is now starting to push shares of WMGI within range of triggering another big breakout trade. That trade will hit if WMGI manages to clear Wednesday's intraday high of $32.65 to its 52-week high at $33.80 with high volume.

Traders should now look for long-biased trades in WMGI as long as it's trending above Wednesday's intraday low of $31.23 or above some more key near-term support at $29.58 and then once it sustains a move or close above those breakout levels with volume that hits near or above 700,826 shares. If that breakout gets underway soon, then WMGI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $45.

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To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

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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.

Williams Companies Earnings: Do Plunging Earnings Mean You Should Sell?

Williams Companies (NYSE: WMB  ) has traversed a rocky road over the past year. Its MLP, Williams Partners (NYSE: WPZ  ) , has faced quarter after quarter of declining revenue and has failed to cover its fast-growing distribution. It has also now missed earnings for four quarters in a row. Let's look at this most recent miss to see whether Williams Companies and its MLPs are still worth owning. 

The earnings themselves
Williams Companies was expected to earn $0.19 a share and beat expectations by 5%, reporting $0.20 a share in net income. I should note that S&P Capital IQ has calculated Williams Companies' earnings minus non-recurring charges and thinks the company actually missed earnings by 17%.

Williams Partners, at first glance, appears to have fallen flat on its face. It reported $0.07 a share in earnings, missing analyst expectations of $0.39 a share by a stunning 82%. This quarter's earnings are down an even worse 86.5% from $0.52 a share in last year's third quarter.

Even Access Midstream Partners (NYSE: ACMP  ) , the fast-growing MLP whose remaining general partner rights Williams Companies recently purchased for $6 billion, reported earnings of $0.22, falling 33% short of Wall Street expectations.

Access Midstream's net income was down a stunning 47.3%, while its distributable cash flow, or DCF, declined 30%, resulting in a distribution coverage ratio of 0.82.

At first glance, it seems as if unitholders in Williams Partners and Access Midstream might want to run for the exits. However, when one digs in to the actual results, as well as the company's near-term future outlook, things look far better. 

Drilling into the numbers
Let's start with Williams' seemingly horrific plunge in earnings. Last quarter's $0.52 per share in net income was largely due to a $50 million insurance payout resulting from the business interruption of its Geismar facility in Louisiana. 

Thus, the comparison to last year's quarter isn't valid, since those previous earnings were inflated by a non-business-related credit. However, this year's earnings still missed by a mile, and the two primary reasons were the continued downtime at the Geismar plant (which is scheduled to go back online in November) and continued margin compression in the partnership's NGL segment. 

US Producer Price Index: Natural Gas Liquids and Residue Plant Condensate, Ethane, Mixtures, Other data by YCharts

As this chart shows, NGLs such as ethane are down 30% this year, the result of booming gas production and insufficient NGL pipeline supply. As a result, many producers are rejecting the liquid, and that means choosing to allow the chemical to remain part of natural gas, rather than pay to have it separated out and transported in separate pipelines.

The combination of the offline Geismar plant, lower NGL margins, and $24 million in higher net interest expense knocked earnings down to $217 million. When factoring out the $50 million insurance payment, that means earnings declined by 7.8% compared with last year.

More important than this quarter's earnings is Williams Partners' year-to-date earnings, which clocked in at $801 million, or $0.53 a share. That's down from $899 million for the same time period last year, but when adjusted for the $225 million in insurance payments received for Geismar in 2013, year-to-date earnings were actually up 18.8%.

Similarly, Access Midstream's terrible earnings are just an accounting fluke. This quarter's earnings and DCF plunges were caused by one-time merger-related fees. Factoring those out, DCF (which pays the distribution) rose 42.2%, and the coverage ratio is a rock solid 1.67. This soaring DCF is the reason Access Midstream announced a 15% increase in its quarterly distribution. 

What about Williams Companies, the general partner of these two MLPs? Thanks to the acquisition of Access Midstream, quarterly distributions from its MLPs soared 57% to $521 million. Year-to-date distributions received jumped $1.485 billion, or 34%.

What to watch going forward
Williams Companies' management is optimistic about the future, with several major projects set to go online this quarter. Quoting President and CEO Alan Armstrong:

We expect dramatically higher results for Williams Partners in the fourth quarter and 2015. In November and December, we plan to place several major projects into service, including the expanded Geismar plant, the Gulfstar One facility, and the Keathley Canyon Connector pipeline. All three of these large-scale projects are mechanically complete and are expected to generate nearly $1 billion in 2015 cash flows.

In fact, Williams Companies is predicting full-year distributions from its MLPs of $2.06 billion, $2.488 billion, and $2.896 billion in 2014, 2015, and 2016, respectively. The merger of Access Midstream with Williams Partners is now expected to close sometime during the first quarter -- management is shooting for January. Williams Companies reiterated its earlier guidance of 15% dividend growth through 2017, following the 32% dividend increase management just announced. 

Meanwhile for the soon-to-be-merged Williams and Access Midstream, which will retain the name Williams Partners, management is guiding for $3.65 per unit in annual distributions, which represents a 50% and 30% increase over Access Midstream's 2014's second-quarter and full year guidance. 

Looking forward long-term, management believes that the larger Williams Partners' $30 billion of current and potential backlog can sustain industry-leading 10% to 12% distribution growth through 2017 while maintaining a healthy distribution coverage ratio of 1.1. 

Source: Williams Companies' third-quarter investor presentation.

What should current and prospective Williams investors look for going forward? Simply put, management needs to be able to deliver on its aggressive growth promises and timetables. Geismar's restart was originally scheduled for April and then pushed back to June for enhanced safety features. Now the restart is scheduled for November.

Similarly, the merger was supposed to be completed this quarter but is now scheduled for Q1 of 2015. With management's history of delays, I think it's vitally important for Williams to be able to stick to its guidance schedule if it's to deliver on the promised dividend and distribution growth.

Takeaway
Williams Companies and its MLPs seemingly missed earnings expectations yet again, and in a big way. Yet accounting for one-time charges related to the Geismar accident and Access Midstream/Williams Partners merger, the results are actually very good. With one of the largest backlogs in the industry projected to fuel some of the strongest dividend and distribution growth, Williams Companies and Williams Partners remain a strong income investment -- as long as management can keep its project timelines on track.

 

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Western Digital Corp. Earnings: The Platters Are Still Spinning, but Nothing's Getting Saved

Western Digital (NASDAQ: WDC  ) reported earnings for the first quarter of its 2015 fiscal year this afternoon. The hard-disk-drive leader generated $3.94 billion in revenue for the quarter ended in September, resulting in adjusted earnings of $2.10 per share, and both results topped Wall Street's expectations. Analysts had modeled $3.89 billion in revenue and $2.03 in adjusted EPS.

Despite the double beat, Western Digital's shares have slipped a bit in after-hours trading and currently cling to a loss of roughly 2% as of this writing. The reason lies in the company's forward guidance. Western Digital now expects to generate between $3.75 billion and $3.85 billion in revenue for its fiscal second quarter, which will result in adjusted earnings of $2.00 to $2.10 per share. These estimates both undershoot Wall Street's consensus numbers even on the high end, as analysts were expecting $3.9 billion in revenue and $2.20 in adjusted EPS for the second quarter.

In all, this wasn't a particularly compelling quarter for Western Digital, which saw its revenue rise by less than 4% year over year while its adjusted EPS declined 1% year over year. The company also lost market share in the HDD market, as its 44% share of an estimated 147.2 million HDDs shipped during the quarter was down from 45.7% in the prior quarter, and also lower than the year-ago quarter's 44.7% share.

Let's look at Western Digital's progress in chart form now, to get a better idea of how it's progressed and where it might go from here. We'll start with the top and bottom lines:

Source: Western Digital earnings reports.

Source: Western Digital earnings reports.

The general trend hasn't been very good to Western Digital over the past two fiscal years. Western Digital enjoyed a spike in HDD sale prices because of supply constraints at the start of its 2013 fiscal year -- the average selling prices of Western Digital's HDDs peaked in the middle of fiscal 2012 as unit shipments plunged -- and ASPs have remained elevated since. This initially helped the company produce anomalously high growth rates, which have since given way to a multiyear slide. Only four of the nine quarters from mid-2013 to the upcoming second quarter of 2015 have shown year-over-year revenue growth, and Western Digital's adjusted EPS will grow in only two of those nine quarters, if the company's guidance holds up.

The company hasn't done much to change the calculus of the HDD market in recent quarters, either, as its 44% share of the market in its fiscal first quarter was not only lower than its share a quarter ago and a year ago, but it was also lower than the 44.9% share it reported during the fiscal first quarter of 2013:

Source: Western Digital earnings reports.

This is probably going to be good news for investors in rival HDD maker Seagate (NASDAQ: STX  ) , which has seen its share of the addressable HDD market slip over the past year. In fact, Seagate's latest quarterly report came out just yesterday, and its market share in the first quarter of 2015 (both companies report on the same quarterly schedule) was up to 40.4% -- a big jump from its 38% share in the final quarter of fiscal 2014, according to Western Digital's own data on the overall HDD market. This recent data shows that the HDD market remains fiercely competitive, and one company's triumph in any given quarter may give way to disappointment in the next.

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PepsiCo Gives Some Solid Reasons To Believe In Its Future

The beverage market has changed a lot over the last few years, as people have become health conscious and want more healthy drinks rather than the sugary ones. Thus, the beverage retailers have shifted their focus to making juices and other energy drinks for the customers. Further, this change in customers' preferences has resulted in lower sales of carbonated soft drinks.

However, PepsiCo (PEP) seems to be managing its way out as it registered a blockbuster third quarter. The recently reported numbers are way ahead of the Street's expectations, enabling the share prices to rise. Let us dig in deeper.

The impressive numbers

Sales jumped 2% to $17.2 billion, over last year's quarter. This was ahead of analysts' expectations of $17.1 billion. On an organic basis, revenue surged 3% as compared to the previous year. Ramped-up promotions, through advertisements and discounts, helped the company attract more customers. Also, an increase in product prices in the previous quarter drove the top line higher.

Going by the segments, snacks division is the most attractive segment for the retailer. Sales in the Frito Lay category jumped 3%, which helped in offsetting the weakness in other categories. But sales in the Quaker Food division declined 2%. The beverage segment reported flat sales since the decline in carbonated soft drinks was offset by growth in the non-carbonated drinks.

The beverage retailer also did well on the earnings front. The bottom line jumped 7% to $1.36 per share, much higher than the estimate of $1.29 per share. PepsiCo's cost cutting plan, initiated in 2012, and productivity gains helped earnings grow.

By the geography

Revenue from AMEA (Asia, Middle East & Africa) region grew 11% over last year. Performance in this segment was dr

Are Hedge Funds Too Complex for the 401(k) Market?

Liquid alternative mutual funds are growing faster than any other segment of the $15 trillion mutual fund industry, according to Morningstar research.  Assets rose to $285 billion in the first quarter of 2014. There are more than 500 alternative funds competing for investors’ retirement money. To put their nascence in perspective: over half of those have been created since 2008.

Alternatives have been a staple of the Defined Benefit component of US retirement industry for decades. Massive private and public sector institutional funds deploy alternatives, a category that involves a vast array of investment strategies, as a way to add diversification and hedge against risk to enhance portfolio performance.

A recent purvey conducted by Pimco’s DC practice probed 49 consulting firms that serve 7,800 clients with aggregate DC assets in excess of $2.8 trillion. Nearly all of the consultants surveyed (98 percent) support or strongly support the use of alternatives in custom target-date funds. What those consultants are saying is clear: the biggest risk in alternatives is in not accessing them.

Loosely defined, alternatives are those asset classes that fall outside of stock and bond categories that have shared allocation, along with cash, in traditional 401(k) plan structure. Hedge funds, private equity, commodities, private real estate and inflation protected fixed income like TIPS all fall into the alternative designation.

Harmonizing DC Plans in the Age of Uncertainty

Aggregate data through multiple market cycles over the past 20 years shows that Defined Benefit plans outperform Defined Contribution plans, when compared annually, the far majority of the time. This, in spite of DC plans having larger exposure to equities. The advantage is one of diversification and correlation. DB plans are structured to protect against volatility. By incorporating hedge funds, international equities, long/short positions, and liquid and illiquid assets alike, DB plans are better able to produce in turbulent markets because their performance is less dependent on one index, like the S&P.

At the largest plan sponsor level--those employers that manage both DB and DC plans--there has been dissonance in strategy. Typically, it is the company’s same investment committee applying two different approaches, one complex, nuanced and diversified through many investment vehicles and many managers for DB pension plans, the other a far more basic approach for the self-directed enrollees in a sponsor’s DC plan.

By harmonizing the two approaches, proponents of alternatives argue sponsors can align performance of their DC plans with those of DB plans.  This, says the argument, is an obvious net-benefit to what is the dubious state of the country’s current retirement landscape.

Liquid Alternatives—“If You Don’t Understand It, Don’t Invest in It”

With interest rates having nowhere to go but up, the traditional protections of passive bond allocations in 401(k) s is questionable, putting it mildly. Passive fixed-income holdings will lose value as interest rates rise, potentially adding risk to the products most retail investors have used to preserve principal. This has never-before-seen ramifications for the 401(K) industry. Shifting weight to stocks was as sound of a strategy last year as it was as poor of one in 2008. These massive fluctuations in equities have driven home their risk to investors approaching retirement. 

But alternatives? Hedge funds and private equity? Isn’t this the opaque world of Bernie Madoff, credit default swaps and financial jury-rigging that spawned idioms like Occupy Wall Street and the New Normal?

“There’s a murky side to the world of hedge funds, but there is also massive diversity in approaches,” says Jim Dilworth, founder and managing partner of Simple Alternatives, an based alternative fund company. “And yes, a lot of misunderstanding. But it’s natural that DC enrollees get access to the options of DB plans. Education at the sponsor and enrollee level will be vital.”

Dilworth oversees the management of the S1 fund, a liquid alternative long/short, equity mutual fund that is a part of the movement working to prove its value in the DC space. 

Funds like S1 give investors access to hedge fund managers who previously only worked with accredited, high net-worth individuals or institutions, while hedge fund managers get access to a massive new market. And it puts those strategies in the context of the Investment Company Act of 1940, subjecting them to regulations traditional hedge funds are not beholden to. Hedge fund managers are proving eager to adjust their high compensation structures to access the lucrative mutual fund industry. Alternative funds like S1 delivered 66 cents of every new dollar of assets brought into hedge funds last year.

That has caught the eye of the SEC. Last week they announced they’re testing a select group of liquid alternative funds to see if they are indeed liquid, not over-leveraged while also being compliant with disclosure protections established in the ’40 Funds Act. The SEC will look at number of hedge fund structures, including long/short equity funds similar to S1. (The SEC did not disclose which funds they will be testing. The S1 Fund was recently given a five-star rating by Morningstar.)

“This is fantastic news, exactly what the SEC needs to be doing,” says Dilworth, who describes his long/short fund as “vanilla.” 

“There are a lot of alternatives using leverage, and complicated off-shore vehicles as a part of their compensation structure. When the SEC is out there actively protecting the investor it is good for us, and good for everyone.”

Dilworth is hoping the relative complexity of alternatives can satisfy the time-honored wisdom he says investors of all levels should abide by. “If you don’t understand it, don’t invest in it.”

Barriers to Plan Sponsors

Research from McKinsey & Co. suggests the market for liquid alternatives will grow to represent 8-10 percent of the mutual fund industry by 2017. How open plan sponsors will be to their adoption is less clear. ERISA claims brought by the DOL and private class action have made fees paramount in the minds of fiduciaries. When alternatives tap the world of hedge fund managers, they often create multi-levels of management that all have to be compensated. Actively managed liquid alternatives will be more expensive than passive index funds.

What’s more, sponsors are going to have to actively engage their enrollees on the nature of the alternative options, whether they are folded into a target-date fund or offered to employees in their own basket of options. 

There is a cost to that, to say nothing of unpredictable fiduciary liabilities that may arise from the movement of alternatives. 

Those costs call into question plan sponsors’ incentive to offer higher fee products that will also require some investment in enrollee education. Sponsors are incanted to invest in the management of their DB plans because they occupy huge chunks of liability on company balance sheets. With self-directed DC plans, performance outcome liability falls on the individual enrollee. 

“Where is the upside for an investment committee picking great options,” wonders Jennifer Eller, a principal at the Groom Law Group, a Washington DC-based employee benefits specialist firm. “The upside is they don’t want bad options—high fees, volatility, these are real fiduciary risk factors. When a committee performs really well for their employees, there’s no monetary benefit to the committee. Does it make sense to expose participants to additional risk, even if there is a possibility of greater returns, when there is no reward?”

Those questions cut to the philosophical core of the societal shift from Defined Benefit to Defined Contribution plans.  Warren Buffet has succinctly said risk comes from not knowing what you’re doing. The risk for alternatives going forward?  Maybe it’s in motivating sponsors to help their enrollees know what they’re doing.

New Home Sales Hit 6-Year High; Recovery Still Fragile

Keith Srakocic/AP WASHINGTON -- Sales of new single-family homes rose to a six-year high in September, but a sharp downward revision to August's sales pace indicated the housing recovery remains tentative. The Commerce Department said Friday that sales increased 0.2 percent to a seasonally adjusted annual rate of 467,000 units, the highest reading since July 2008. August's sales rate was revised down to 466,000 units from 504,000 units. Economists polled by Reuters had forecast new home sales at a 470,000-unit pace last month. U.S. Treasury debt prices held on to gains after the data. U.S. stocks were slightly up, while the dollar edged down against the euro. The housing sector index was down 0.78 percent. U.S. homebuilder PulteGroup (PHM), which Thursday reported a 4 percent rise in quarterly revenue from home sales, was trading more than 1 percent lower. "We expect the housing market recovery to remain relatively gradual over the coming months," said Gennadiy Goldberg, an economist at TD Securities in New York. New home sales, which account for about 8 percent of the housing market, tend to be volatile month to month and large revisions aren't unusual. Compared to September last year, sales were up 17 percent. Housing is slowly regaining its footing after activity stalled in the second half of 2013 as mortgage rates soared. With the 30-year fixed mortgage rate falling this week to its lowest level since June of last year, sales could pick up. Falling Mortgage Rates Mortgage rates have declined in tandem with a sharp fall in U.S. Treasury debt yields as slowing global growth and a sharp sell-off in international stock markets prompted traders to push back expectations for an interest rate increase by the Federal Reserve. Slow wage growth, however, remains a constraint for an acceleration in home sales. Data this week showed sales of previously owned homes touched a one-year high in September. Last month, new home sales fell 8.9 percent in the West, handing back some of August's 28.1 percent surge. In the populous South, sales rose 2 percent, while they increased 12.3 percent in the Midwest. Sales were flat in the Northeast. With sales rising modestly, the stock of new houses available on the market rose 1.5 percent to the highest level since July 2010. Builders have been ramping up construction and the improvement in inventory should provide buyers with more choices and temper house price increases. At September's sales pace it would take 5.3 months to clear the supply of houses on the market, unchanged from August. Six months' supply is normally considered a healthy balance between supply and demand. The median new home price fell 4 percent to $259,000 from a year ago.

Alexion Pharmaceuticals: Nice Earnings, Too Expensive?

On a day when biotech stocks like Gilead Sciences (GILD), Regeneron Pharmaceuticals (REGN) and Celgene (CELG) are flying, few are flying higher than Alexion Pharmaceuticals (ALXN).

Alexion has gained 7.1% after the biotech company reported a profit of $1.27 a share, topping analyst forecasts for $1.15. Alexion also raised its full-year guidance to between $5.15 and $5.20 a share, up from a range of $4.95 to $5.05.

So what’s not to like? Citigroup’s Yaron Werber and Kumaraguru Raja worry about Alexion’s valuation–it trades at 36.9 times forward earnings–and state their preference for Celgene, Gilead Sciences and Regeneron Pharmaceuticals. They explain why:

Overall, a good quarter as Soliris is growing nicely driven by global expansion. The updated guidance for 2014 looks good boosted by incrementally higher revenues and lower tax rate. Soliris is posting good growth and is once again showing an ability to beat and raise which bodes well for the stock. We are encouraged that the guidance raise was more than the revs beat which bodes well for Q4. Given the high P/E, we prefer Celgene, Gilead and Regeneron as we consider Regeneron to be a better value for a high growth/high multiple stock.

Shares of Gilead Sciences have gained 1.4% to $107.61 at 2:51 p.m. today, while Regeneron Pharmaceuticals has risen 3.2% to $396.63 and Celgene has advanced 6.1% to $100.55 after reporting top-notch earnings of its own.

Qualcomm: The New Acquisition Show Stopper

As we had earlier discussed on several occasions, businesses across the globe are riding high on acquisitions, and reports are doing the rounds of yet another acquisition. A point to be noted is that of all the acquisitions, most are happening in the technology sector. These acquisition sprees are suggesting the start of another trend in quest of innovation.

The traditional practice has been to search for new skills through recruitment of new talents and encouraging the R&D department. But the new trend is first find out what the market is looking for, and then acquire a start-up or a smaller company working on that topic and release their product with the big brand name. This is a relatively smart decision, as it saves time and money invested in talent hunts, and also does away the probability of wrong recruitments and failed experiments. Let us find out the new star in the acquisition arena.

The Qualcomm Acquisition

CSR (CSRE), which recently rejected a $2.5 billion takeover offer from Microchip Technology (MCHP), has just been bagged by Qualcomm Inc. (QCOM) for $2.5 billion.

CSR is a U.K.-based company engaged into designing chipsets and components used in mobile phones and satellite navigation systems. The company is also designing components for hands-free driving headsets and Bluetooth technology, which connects one device with another without any physical connection. The offer made by Qualcomm for CSR stands at 40% higher than its current trading prices before the news of the acquisition was declared. In a press release, Qualcomm acknowledged the acquisition of CSR's expertise in the Internet-of-Things and automobile infotainment.

This acquisition will certainly add more depth and variety in Qualcomm's current offerings by adding products, channels, and customers in the important growth categories of Internet of Everything (IoE) and automotive infotainment. This move will bolster Qualcomm's desire to take leadership in this business domain and allow it a strong foothold in this niche sector. This opportunity is in line with Qualcomm's strategic priorities in these rapidly growing business areas.

What's in and what's out in this acquisition

Last week, Microchip had pressed the panic button setting of the alarm about an industry correction in semiconductors market. They had made a bid to acquire CSR last August, but CSR reportedly turned down their offer stating that their offer was too low to be considered; however, the reason for the rejection going by market speculation and street analysts seem to be different. The buzz is that Microchip was motivated to make CSR party to a tax inversion deal, allowing Microchip to house income in the U.K.'s lower tax jurisdiction. Now that Qualcomm has bagged CSR and the reports have been confirmed by Qualcomm officially the Microchip deal stands null and void.

Qualcomm manufactures digital communications products based on CDMA, OFDMA and other technologies for use in voice and data communications, networking, application processing, multimedia and global positioning systems. The company earns revenue from the sale of integrated circuit products and licensing of its patents, software and other intellectual property. For the quarter ended June 29, 2014, Qualcomm reported revenue of $6.8 billion, up by 9% from the same period last year. Net income of $2.2 billion was up 42% year-over-year.

The recent surge in demand for the latest range of smartphones has put Qualcomm into the leaders' throne in the sector; its chips can be found in Apple's (AAPL) iPhone 6, Samsung's (SSNLF) Galaxy Note 4 and BlackBerry (BBRY) Passport and a range of latest smartphones and tablets. With a market capitalization of $120 billion the company trades at 16 times forward earnings. CSR's expertise in designing and manufacturing chipsets and components customized for the Internet-of-Things would enhance the product spread of Qualcomm in the niche sector of Integrated Chipset designing and manufacturing. Thus placing Qualcomm in the fast lane among its peer group competitors.

The Crux of this Acquisition

Qualcomm's $2.5 billion acquisition of CSR has severed a massive blow on its arch rival Microchip; Microchip was also in the run to woo CSR but failed to make the relation work, and Qualcomm swept away the CSR deal. Both CSR and Qualcomm would benefit from the ongoing mammoth upswing in smartphone market demand and the corporate frenzy that is going around Internet-of-Things.

Though Qualcomm stock prices at current levels might seem on the downside, this dip is not exclusive to the chipmaker, but a result of the ongoing market corrections which is bound to rebound ones the correction phase is over. Going by the fundamentals of the company's business line and the kind of product mix it has to offer which is in perfect harmony with the ongoing market fanfare of smartphones and mobile communication devices, the company is bound to see brighter days in the near future. I would strongly recommend a buy at the current oversold levels and hold till the market correction phase is over post which time would be rip to encash the positions taken now.

About the author:reports.droyWe are a group of analysts exploring and analyzing different domains of business and writing reviews based on information available in public domain web portals. We do not hold a

Numbers Never Lie

A great businessman once said, "Men lie, women lie, but numbers don't." When Jay-Z said this, he said it in a song titled "Reminder," and that's what I would like this post to be, a reminder about price fluctuations.

Markets are in a bit of a downward spiral as we hit correction territory. In the video above, Sterne Agee Chief Market Technician Carter Worth shared some key points explaining why prices can continue to fall. The video is pretty long, about 11 minutes, so I'll summarize what he said below:

1. When assests drop 5% in price, they tend to fall even lower.

2. Since 1927 there have been 209 "corrections" of 5% or more in market prices.

3. The average price decline is 12.2%, while the median price decline is 8.2%.

4. Stocks still have room to fall, we are near the 8.2% decline from the high, but we can still fall to the average of 12.2%.

5. The average time these corrections have lasted is 38 trading sessions, and the median is 22 trading sessions. The current selloff has only lasted for 17 sessions, which means it could fall lower and last longer.

Yesterday, there was a wide trading range, with the S&P up nearly 20 points before selling pressure caused the S&P to end at 3 points in positive territory. What we are seeing in the overall pricing of assets is a reversal towards intrinsic value. I know my last few posts have been pretty technical for a value investing blog, but I think panic and fear selling, as well as inflated valuations, have an effect on our portfolios. Mispricing of assets is the way value investors find deals in the first place.

The reason why technical analysis can play a key part in a value investing portfolio, based on fundamentals, is the structure of a deal. A value investor makes money when he buys an asset; a speculator makes money when he sells. We search high and low for value and make sure that we aren't overpaying to obtain value. When markets decline, we have a real buying opportunity as assets begin to go on sale. Looking at technical analysis, assets can continue to go on sale, even though the companies haven't become less valuable.

There is a saying that "a rising tide lifts all boats." I'd like to coin the phrase, "in a torrential downpour, everyone gets soaked." Just as in a bull market, or just a market upswing, prices of bad companies increase; in a market correction, and especially a bear market, prices of good companies decrease. Let's briefly look at Intel (INTC) a company in my portfolio.

A week ago, INTC was priced at $34.27. Yesterday, it had an earnings release demonstrating improved revenue and earnings. INTC is a great company, and increased earnings and revenue is great news, but what has the overall market selloff done to the pricing of this great company? INTC is down about 10% from a week ago. If we simply looked at prices, INTC would be out of my portfolio and should be out of yours. The point is, there was no real economic indication that INTC is now 10% less valuable as a company, no economic data to show that INTC is a bad company to own now, when the opposite data was actually reported. Pricing fluctuations rarely indicate the value of a company, but always indicate whether there is a buying opportunity for an asset, or if the asset should be overlooked for a better opportunity.

About the author:Michael Hamlett Jr.

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Voters: Tuesday, October 14, 2014 5 Short-Squeeze Stocks Set to Soar on Bullish Earnings DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally. Must Read: Warren Buffett's Top 10 Dividend Stocks This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly. That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news. Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if Wall Street doesn't like the numbers or guidance. If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend. With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week. Must Read: 5 Rocket Stocks to Buy for a Shaky Market Netflix My first earnings short-squeeze trade idea is Internet television network player Netflix (NFLX), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Netflix to report revenue of $1.41 billion on earnings of 94 cents per share. The current short interest as a percentage of the float for Netflix is pretty high at 10.1%. That means that out of the 58.87 million shares in the tradable float, 5.94 million shares are sold short by the bears. This is a decent short interest on a stock with a relatively low tradable float. If the bulls get the earnings news they're looking for, then shares of NFLX could easily jump sharply higher post-earnings as the bears rush to cover some of their trades. From a technical perspective, NFLX is currently trending below its 50-day moving average and above its 200-day moving average, which is neutral trendwise. This stock has been moving lower over the last few weeks, with shares falling from its high of $467.99 to its intraday low of $433 a share. During that downtrend, shares of NFLX have been consistently making lower highs and lower lows, which is bearish technical price action. That move has also started to push shares of NFLX back below its 50-day moving average. If you're bullish on NFLX, then I would wait until after its report and look for long-biased trades if this stock manages to break out back above its 50-day moving average of $459.71 a share and then above some more key near-term overhead resistance at $467.99 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 2.06 million shares. If that breakout develops post-earnings, then NFLX will set up to re-test or possibly take out its 52-week high of $489.29 a share. Any high-volume move above that level will then give NFLX a chance to make a run at or take out $500 a share. I would simply avoid NFLX or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $433 to $420 a share with high volume. If we get that move, then NFLX will set up to re-test or possibly take out its next major support level at its 200-day moving average of $412.80 a share. Must Read: 7 Stocks Warren Buffett Is Selling in 2014 Wolverine World Wide Another potential earnings short-squeeze play is men's footwear player Wolverine World Wide (WWW), which is set to release its numbers on Tuesday after the market close. Wall Street analysts, on average, expect Wolverine World Wide to report revenue $720.37 million on earnings of 59 cents per share. The current short interest as a percentage of the float for Wolverine World Wide is pretty high at 9.9%. That means that out of the 98.55 million shares in the tradable float, 9.76 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 14.2%, or by 1.21 million shares. If the bears get caught pressing their bets into a bullish quarter, then shares of WWW could easily rip sharply higher post-earnings as the bears rush to cover some of their positions. From a technical perspective, WWW is currently trending slightly below both its 50-day and 200-day moving averages, which is bearish. This stock has been trending sideways for the last four months and change, with shares moving between $23.94 on the downside and $27.41 on the upside. Any high-volume move above the upper-end of its recent sideways trending chart pattern post-earnings could triggering a big breakout trade for shares of WWW. If you're in the bull camp on WWW, then I would wait until after its report and look for long-biased trades if this stock manages to break out above both its 50-day moving average at $25.83 a share and its 200-day moving average at $26.77 a share and then above more key near-term resistance at $27.41 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 811,922 shares. If that breakout develops post-earnings, then WWW will set up to re-test or possibly take out its next major overhead resistance levels at $29.86 to $31 a share. Any high-volume move above $31 will then give WWW a chance to re-fill its previous gap-down-day zone from February that started near $34 a share. I would simply avoid WWW or look for short-biased trades if after earnings it fails to trigger that breakout and then drops below some key near-term support levels at $24.55 a share to its 52-week low of $24 a share high volume. If we get that move, then WWW will set up to enter new 52-week-low territory, which is bearish technical price action. Some possible downside targets off that move are its next major support levels at $22 to $21 a share, or even $20 to $19 a share. Must Read: Sell These 5 Toxic Stocks Before the Next Drop Bank of the Ozarks Another potential earnings short-squeeze candidate is regional banking player Bank of the Ozarks (OZRK), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Bank of the Ozarks to report revenue of $94.61 million on earnings of 39 cents per share. The current short interest as a percentage of the float for Bank of the Ozarks is notable at 9.6%. That means that out of the 70.43 million shares in the tradable float, 6.80 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 8%, or by 504,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of OZRK could easily jump sharply higher post-earnings as the bears rush to cover some of their trades. From a technical perspective, OZRK is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending for the last month, with shares moving lower from its high of $34.67 to its recent low of $29.92 a share. During that downtrend, shares of OZRK have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of OZRK have now started to bounce off that $29.92 low and it's beginning to move within range of triggering a near-term breakout trade post-earnings. If you're bullish on OZRK, then I would wait until after its report and look for long-biased trades if this stock manages to break out above both its 200-day moving average of $31.28 a share and its 50-day moving average of $31.97 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 430,595 shares. If that breakout kicks off post-earnings, then OZRK will set up to re-test or possibly take out its next major overhead resistance levels at $34.67 to its 52-week high of $35.24 a share. Any high-volume move above those levels will then give OZRK a chance to make a run at $40 a share. I would avoid OZRK or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support at $29.92 a share with high volume. If we get that move, then OZRK will set up to re-test or possibly take out its next major support levels at $27.41 to $24 a share. Must Read: 5 Stocks Insiders Love Right Now MGIC Investment Another earnings short-squeeze prospect is private mortgage insurance player MGIC Investment (MTG), which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect MGIC Investment to report revenue of $233.27 million on earnings of 10 cents per share. The current short interest as a percentage of the float for MGIC Investment is very high at 13.8%. That means that out of 332.55 million shares in the tradable float, 45.92 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of MTG could easily rip sharply higher post-earnings as the shorts move to cover some of their positions. From a technical perspective, MTG is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been trending sideways for the last two months, with shares moving between $7.58 on the downside and $8.56 on the upside. Any high-volume move above the upper end of its recent sideways trading chart pattern post-earnings could easily trigger a breakout trade for shares of MTG. If you're bullish on MTG, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 50-day moving average of $8.07 a share and its 200-day moving average of $8.49 a share and then above more near-term resistance at $8.56 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 5.96 million shares. If that breakout begins post-earnings, then MTG will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $9.50 a share. Any high-volume move above that level will then give MTG a chance to trend north of $10 a share. I would simply avoid MTG or look for short-biased trades if after earnings it fails to trigger that breakout and then takes out some key near-term support levels at $7.58 a share to its 52-week low of $7.16 a share with high volume. If we get that move, then MTG will set up to enter new 52-week-low territory below $7.16, which is bearish technical price action. Some possible downside targets off that move are $6 to $5.50 a share. Must Read: Beat the S&P With These 5 Hated Short-Squeeze Stocks Del Frisco's Restaurant Group My final earnings short-squeeze play is restaurant operator Del Frisco's Restaurant Group (DFRG), which is set to release numbers on Tuesday before the market open. Wall Street analysts, on average, expect Del Frisco's Restaurant Group to report revenue of $61.85 million on earnings of 8 cents per share. The current short interest as a percentage of the float for Del Frisco's Restaurant Group sits at 5.5%. That means that out of the 23.50 million shares in the tradable float, 1.31 million shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a decent short covering rally post-earnings if the bulls get the earnings news they're looking for. From a technical perspective, DFRG is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last three months and change, with shares falling from its high of $28.21 to its recent low of $18.81 a share. During that downtrend, shares of DFRG have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of DFRG have started to spike modestly higher off that $18.81 low and it's now moving within range of triggering a near-term breakout trade post-earnings. If you're in the bull camp on DFRG, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key near-term overhead resistance levels at $20.15 a share to its 50-day moving average of $21.31 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 294,360 shares. If that breakout starts post-earnings, then DFRG will set up to re-test or possibly take out its next major overhead resistance levels at $23.07 to its 200-day moving average of $24.42 a share. Any high-volume move above those levels will then give DFRG a chance to make a run at $27 to $28 a share. I would avoid DFRG or look for short-biased trades if after earnings it fails to trigger that breakout, and then drop below some key near-term support levels at $18.81 to $18.66 a share to its 52-week low of $17.53 a share with high volume. If we get that move, then DFRG will set up to enter new 52-week-low territory, which is bearish technical price action. Some possible downside targets off that move are its next major support levels at $15.63 to $13.75 a share. Must Read: 10 Stocks George Soros Is Buying To see more potential earnings short squeeze plays, check out the Earnings Short-Squeeze Plays portfolio on Stockpickr. -- Written by Roberto Pedone in Delafield, Wis. RELATED LINKS: >>4 Stocks Rising on Big Volume to Trade for Breakouts >>4 Defensive Stock Trade to Protect Your Portfolio >>Must-See Charts: How to Trade 5 Big Charts for Big Gains 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. Sunday, October 12, 2014 Time to Wade (Back) Into Valmont Industries (VMI) Every week, just as a matter of routine and discipline, I run a scan of stocks that fit a strict set of fundamental and technical criteria. Most of the results are worthless (though I know that going in), but there's always a gem buried in there somewhere. This week's gem is Valmont Industries, Inc. (NYSE:VMI) - a metal fabricator. No, it's not the sexiest of businesses, but VMI certainly is the sexiest (relative to its risk) of stocks for those concerned about a company's consistency. The Valmont Industries catalog is about as boring as you might think it could be... tubular products, steel and aluminum towers, irrigation systems, and concrete pads, just to name a few. While the company may not be whipping investors into a frenzy with its cutting edge products, investors may want to bear in mind that the lower-brow the product is, the more consistent VMI can be when it comes to selling them. And sure enough, VMI has proven itself when it comes to that consistency. As the chart below illustrates, quarterly and trailing-twelve-month earnings have risen steadily since 2005, chopping around just a bit in 2010, and hitting something of a lull the past couple of quarters. Those are apt to be short-term stumbling blocks for Valmont Industries, however. Analysts project that the company is going to ramp up earnings by 9% in 2015, although 2014's per-share income is expected to slide by 5%. Don't worry though. VMI has a long history of significant earnings beats. After getting past 2010's turbulence, the company has topped estimates in ten of the past twelve quarters, missed once, and met once. Granted, the miss was Q3 of last year and the met was Q4 of 2013, but all signs point to the company getting back on track beginning in Q1. Better still, the forward-looking (2015) of 13.5 is tiptoeing into "value" territory. With all of that being said, the fundamentals aren't the reason I'm stepping into Valmont Industries, Inc. in my public portfolio today. The core of my reason for jumping in here is technically based - a broad uptrend for the stock has been renewed, and more recently has been confirmed. VMI shares are back above the 100-day (gray) and 200-day (green) moving average lines, and both of those lines are pointed upward. The stock's already logged a string of higher highs and higher lows. What I'm hoping for here is a repeat of the kind of move we saw in 2012 coming out of a similar chop - and lull - in the latter part of 2011. Feel free to poach the idea if you want, though bear in mind that Valmont is far better suited for long-term investors than it is for traders. Or, better still, you can follow me and my portfolio at the SCN site to keep up with all my picks and my eventual exit of VMI. For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently. Monday, October 6, 2014 HP to split into two companies, report says Meg Whitman, the CEO of HP, has led a restructuring of the company. NEW YORK (CNNMoney) The next step for computing giant Hewlett-Packard's restructuring may be a split into two companies. The Wall Street Journal, citing unnamed sources, reported Sunday that HP (HPQ, Tech30) plans to put the PC and printer operations under one roof and its business that provides software and services to corporate customers under another. The Journal said the announcement could come as soon as Monday, and that the separation would take place next year. HP spokeswoman Sarah Pompei declined to comment on the report. The split follows a number of spinoffs and breakups this year. Most recently, eBay (EBAY, Tech30) announced on Tuesday it would spin off the online payment platform PayPal, which it bought in 2002. Meg Whitman, the CEO of HP, took the helm in 2011 and unveiled a five-year restructuring plan. That included a major overhaul of the printer and PC business in 2012. Layoffs then and since have totaled at least 45,000, and HP projected savings of $4.5 billion per year. Her predecessor, Leo Apotheker, considered a corporate split similar to the one the Journal reported, but he left the company after only 11 months. Whitman would have leadership roles at both companies, the Journal said. She would be CEO of the enterprise business and chairman of the hardware company. Some investors applauded the potential move. The split would allow HP to be more "nimble" and let it "reshape" its business, said Brendan Connaughton, chief investment officer at ClearPath Capital Partners. In particular, Connaughton said, the move would put renewed focus on enterprise services, "where they have incredible margins," sometimes upwards of 20%. HP is among the top five performers in CNNMoney's Tech 30 index, which tracks significant tech companies. Its stock has climbed nearly 26% this year, bolstered by earnings that have climbed even as sales slumped. --CNN's Paul LaMonica and Dave Goldman contributed to this report Wednesday, October 1, 2014 Keurig Green Mountain's Strong Financial Position Is a Long-Term Catalyst Keurig Green Mountain (GMCR) has done very well in 2014. The company's important partnerships and new products are its growth drivers. Another striking fact about Keurig is its strong free cash flow, which is strong enough to attract shareholders and investors who are looking for a dividend-paying stock in the industry. Keurig has paid approximately $800 million in the form of dividend and share repurchase programs while maintaining a burly $1.1 billion of cash. This will certainly provide financial flexibility to the company and help her to invest in many new growth opportunities that lie ahead. In addition, Keurig Green Mountain has decided to pay cash dividend of $0.25 per share on August 1, 2014. Making good progress Keurig Green Mountain continues to make progress as it focuses on key transition, executed on its Keurig brewers system in portion pack segment. The company will be introducing new Keurig 2.0 hot brewers in the ongoing quarter as a part of its consistent efforts towards adding new brands to its brewers system to enhance its profitability. It expects significant growth opportunity for new Keurig 2.0 hot brewer pack in North America and on the global front as well. The new Keurig 2.0 hot brewers will have more than 250 varieties that are available with Keurig system at present, thus creating enough market opportunity for the company to expand further in the market. Besides Keurig Green Mountain has brought in new beverage optimization technology in its Keurig 2.0 brewers as it also introduced interactive capabilities that will allow the customers to brew a carafe with the same quality and one-touch simplicity as a single cup, just what consumers have been asking for. This single-cup brewing will create a winning combination for the company as it enhances its capability, and customers now will be able to perfectly brew the beverages regardless of the size or type. In addition, the company will also be launching its Keurig Cold System new products in the beginning of 2015. This continued investment in its innovation across all the division of its business ranging from product development to merchandising will construct strong pipeline for its new products and definitely put up strong financial and operating background for the company in the coming quarters. The Keurig 2.0 Cold Brewers will be produced in its new Keurig production center in Vermont, where the company plans to start its cold production lines. Research and development in focus Apart from this, the company is also getting a lot of benefits as it continuously invests in R&D that will enable multiple platforms for the company and result in incremental growth. This consistent investment has also helped the company get connected with many new partners due to its ACV advantage and leadership in the industry. Also, the company plans to broaden its relationship with J.M. Smucker's (SJM) and extends hands with Starbucks (SBUX). It also added Peet's, as a new partner in its healthy system that is fed with strong brands. Further, the company also added Krispy Kreme Doughnuts (KKD) to its system and has welcomed long-term partner Lavazza to the Keurig K-Cup system, one of the Italy's favorite coffee br Subscribe to: Comments (Atom) Blog Archive ►  2019 (40) ►  March (19) ►  February (21) ►  2018 (19) ►  August (1) ►  July (9) ►  June (1) ►  May (8) ►  2016 (2) ►  December (2) ►  2015 (88) ►  July (2) ►  June (10) ►  May (12) ►  April (4) ►  March (14) ►  February (18) ►  January (28) ▼  2014 (250) ►  December (16) ►  November (9) ▼  October (13) 4 Stocks Breaking Out on Big Volume Williams Companies Earnings: Do Plunging Earnings ... Western Digital Corp. Earnings: The Platters Are S... PepsiCo Gives Some Solid Reasons To Believe In Its... Are Hedge Funds Too Complex for the 401(k) Market? New Home Sales Hit 6-Year High; Recovery Still Fra... Alexion Pharmaceuticals: Nice Earnings, Too Expens... Qualcomm: The New Acquisition Show Stopper Numbers Never Lie 5 Short-Squeeze Stocks Set to Soar on Bullish Earn... Time to Wade (Back) Into Valmont Industries (VMI) HP to split into two companies, report says Keurig Green Mountain's Strong Financial Position ... ►  September (8) ►  August (6) ►  July (23) ►  June (56) ►  May (30) ►  April (28) ►  March (27) ►  February (12) ►  January (22) ►  2013 (169) ►  December (30) ►  November (24) ►  October (27) ►  September (23) ►  August (22) ►  July (43) ►  2012 (1) ►  May (1) About Me Hong Mei View my complete profile Picture Window theme. Powered by Blogger.