In an earlier article dated April 18, 2013, I forecast that BlackBerry (BBRY) would sell from 5.1 to 7.0 million devices in Q1 and generate revenue of between $3.0 and $3.7 billion.
Actual sales were 6.8 million devices and revenue was $3.1 billion and the company continued to generate positive cash flow. With sales at the high end of my unit forecast and revenues over $3 billion, you might wonder why I decided to become bearish after being a long time bull, as I disclosed in my recent article "I am joining the Bears in the BlackBerry bush". The answer lies in the conference call.
I listened carefully to the discussion and to comments by Thorsten Heins about BlackBerry's performance and prospects. The tone of the conversation was disquieting. First, despite a relatively good quarter that was close to guidance of a small loss, Heins was defensive rather than confident. The press release gave no details of the mix between BB10 and BB7 devices but the conference call revealed the split was 2.7 million BB10 devices and 4.1 million BB7. The robust sales of BB7 devices suggest that there remains a solid market for the traditional BlackBerry notwithstanding its ageing operating system. I am not really surprised, since I continue to use by Bold 9900 which meets my needs and supports the Bloomberg application which I use daily, not yet present on the Z10 or Q10 (both of which I have purchased).
5 Best Mid Cap Stocks To Invest In 2015: Carbo Ceramics Inc. (CRR)
CARBO Ceramics Inc. manufactures and supplies resin-coated ceramic and resin-coated sand proppants primarily used in the hydraulic fracturing of natural gas and oil wells in the United States and internationally. The company offers proppants, including CARBOHSP and CARBOPROP designed for use in deep gas wells; CARBOLITE used in medium depth oil and gas wells; CARBOECONOPROP; CARBOHYDROPROP used to enhance performance in slickwater fracture treatments; CARBOBOND LITE for oil and natural gas wells that are subject to the risk of proppant flow-back; and CARBOBOND RCS, a conductivity proppant. It also provides fracture simulation software, as well as offers fracture design, engineering, and consulting services to oil and natural gas companies. In addition, the company provides a range of technologies for spill prevention, containment, countermeasures, and geotechnical monitoring, as well as offers monitoring systems and services for bridges, buildings, tunnels, dams, slopes, e mbankments, volcanoes, landslides, mines, and construction projects primarily for customers in auto racing teams, surveyors, experimental physicists, radio astronomers, and naval architects markets. It principally sells its products and services to operators of oil and natural gas wells, and oilfield service companies. The company was founded in 1987 and is headquartered in Houston, Texas.
Advisors' Opinion:- [By Travis Hoium]
What: Shares of CARBO Ceramics (NYSE: CRR ) got back on track today, jumping 14% after releasing earnings.
So what: Revenue dropped 13.5% from a year ago to $153.7 million, but came in well ahead of the $142.2 million estimate. Earnings of $0.71 per share were also $0.05 ahead of estimates, so investors cheered a much needed good quarter. �
- [By Luke Jacobi]
CARBO Ceramics (NYSE: CRR) shares tumbled 16.1 percent to $70.91 after the company provided an update concerning marketplace conditions and related impact to sales volumes.
5 Best Defensive Stocks To Invest In Right Now: China Ming Yang Wind Power Group Ltd (MY)
China Ming Yang Wind Power Group Limited incorporated on February 26, 2009, is a wind turbine manufacturer in China, focusing on designing, manufacturing, selling and servicing megawatt-class wind turbines. The Company�� products consist of basic models of wind turbines, each with a rated power capacity of 1.5 megawatt (MW); wind turbines with a rated power capacity of 2.0MW, and 2.5/3.0MW SCD wind turbines. Each product type may be installed with one of three rotor blade models depending on the location and wind conditions. As of December 31, 2012, the Company had entered into sales contracts with 37 end customers to deliver 3,730 units of its wind turbines.
It cooperates with aerodyn Energiesysteme to develop its 1.5 megawatt wind turbines and share intellectual property rights. It also has obtained licenses from aerodyn Asia Co., Ltd. (aerodyn Asia) to manufacture and distribute wind turbines utilizing its super-compact drive (SCD) technology, with a rated power capacity of 6.0MW.
The Company�� customers are the Chinese state-owned power producers which include Huaneng, China Datang, Huadian, China Guodian Corporation, and China Power Investment Corporation (CPIC) or their alternative energy subsidiaries, such as China Longyuan Power Group Corporation Limited (Longyuan), a subsidiary of Guodian, and China Datang Corporation Renewable Power Co., Limited (Datang Renewable), a subsidiary of China Datang. It also sells wind turbines to regional alternative energy investment companies, regional power producers and wind farm operators in the private sector. Its facilities are located in Zhongshan, Tianjin, Jilin, Rudong, Dali and Inner Mongolia in China.
The Company produces megawatt-class, grid-connected, horizontal-axis wind turbines, equipped with a double-fed constant frequency induction generator, which is a design of the generator that enables the generator to produce electric current of a constant frequency as the shaft rotates at varying speeds causing! the generator rotor to rotate at varying speed. It offers 1.5 megawatt turbines specially designed and developed for the wind and weather conditions and power grids in China. Its 1.5 megawatt wind turbines are equipped with rotor blades with a post-installation diameter of 77.1 meters, 82.6 meters or 89.0 meters.
The Company has license rights under a license agreement from aerodyn Asia to manufacture and distribute 2.5/3.0MW SCD wind turbines and 6.0MW SCD wind turbines in China. The Company is focused on developing 3.8MW wind turbine model for larger multi-megawatt wind turbines.
The Company competes with Sinovel, Goldwind, Dongfang Electric, United Power, Vestas, Gamesa Corporacion Tecnologica S.A. and GE Energy.
Advisors' Opinion:- [By Roberto Pedone]
Another under-$10 stock that looks ready to trigger a big breakout trade is China Ming Yang Wind Power Group (MY), a wind turbine manufacturer in China. This stock has been very hot over the last six months, with shares up sharply by 52%.
If you take a look at the chart for China Ming Yang Wind Power Group, you'll notice that this stock has been uptrending over the last few weeks, with shares moving higher from its low of $1.91 to its intraday high of $2.59 a share. During that uptrend, shares of MY have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MY within range of triggering a big breakout trade.
Market players should now look for long-biased trades in MY if it manages to break out above some past overhead resistance levels at $2.58 to $2.80 a share high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.56 million shares. If that breakout hits soon, then MY will set up to re-test or possibly take out its next major overhead resistance levels at $3.35 to its 52-week high at $3.52 a share. Any high-volume move above those levels will then give MY a chance to tag $4 a share.
Traders can look to buy MY off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $2.30 a share, or near more support at $2.02 a share. One can also buy MY off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
5 Best Defensive Stocks To Invest In Right Now: Urban Outfitters Inc.(URBN)
Urban Outfitters Inc. operates lifestyle specialty retail stores under the Urban Outfitters, Anthropologie, Free People, Terrain, and BHLDN brand names in the United States, Canada, and Europe. Its Urban Outfitters stores sell women?s and men?s fashion apparel, footwear, accessories, and gifts, as well as apartment wares, such as rugs, pillows, shower curtains, books, candles, and novelties to young adults aged 18 to 28; and Anthropologie stores provide women?s casual apparel and accessories, shoes, gifts, and decorative items, as well as home furnishings, including furniture, rugs, lighting, antiques, table top items, and bedding to women aged 28 to 45. The company?s Free People stores primarily offer Free People branded merchandise mix of casual women?s apparel, intimates, shoes, accessories, and gifts to young contemporary women aged 25 to 30; Terrain store provides lifestyle home and garden products, antiques, live plants, flowers, wellness products, and accessori es, as well as landscape and design service solutions; and BHLDN store offers a range of weeding collections consisting of wedding gowns, bridesmaid frocks, party dresses, assorted jewelry, headpieces, footwear, lingerie, and decorations. As of January 31, 2012, it operated 197 Urban Outfitters stores, 168 Anthropologie stores, 62 Free People stores, 1 Terrain garden center, and 1 BHLDN store. The company also operates a wholesale business under the Free People brand name that distributes apparel to other retailers and department stores in the United States. In addition, it markets its brands directly to consumers through its e-commerce Websites, including urbanoutfitters.com, anthropologie.com, freepeople.com, urbanoutfitters.co.uk, urbanoutfitters.de, urbanoutfitters.fr, anthropologie.eu, shopterrain.com, and bhldn.com, as well as through its Urban Outfitters, Anthropologie, and Free People catalogs. The company was founded in 1970 and is based in Philadelphia, Pennsylvani a.
Advisors' Opinion:- [By Grace L. Williams]
Yesterday, we wondered what Urban Outfitters (URBN) was up to ahead of second-quarter earnings, as the stock ticked up and analysts wrote that the risk/reward looked favorable.
ReutersAt market close, our questions were answered when Urban Outfitters reported its numbers for the period ended July 31.
WSJ�� Maria Armental summed up the report nicely, but we�� like to highlight that Urban Outfitters reported profit of $67.5 million, or 49 cents a share, down from $76.4 million, or 51 cents a share, a year prior. Revenue during the period rose 7% to $811.3 million. Analysts polled by Thomson Reuters expected earnings of 49 cents and sales of $804.7 million.
Naturally we wondered what analysts think about the retailer: did Urban Outfitters make the cool kid cut this quarter? Two opposing analyst viewpoints have emerged. Representing the bears: Rick Snyder of Maxim Group, who notes that gross margins are expected to be down in the third quarter. He writes:
The company expects gross margin degradation due to the ongoing struggles of its namesake division. The street had expected gross margin to be up in the third quarter, so we look for the consensus to come down closer to our estimates.
Canaccord Genuity analyst Laura Champine accentuated the positive, noting that the results met expectations and Canaccord�� recovery expectations at the company appear to be on track. She writes:
We expected this weakness at Urban Outfitters as the improved assortment has only recently begun to roll out to stores for the back-to-school season. We remain confident the new product will drive higher sales and margins, particularly as promotional levels ease.
Investors appear to agree with Champine. Shares of Urban Outfitters have gained 4.7% to $38.66 at 3:49 p.m.
- [By Ben Eisen]
Given that outlook, he sees ten stocks in the consumer discretionary sector that qualify as bargains at the moment, including some of the very stocks that are expecting downbeat holiday results. They include: Advance Auto Parts Inc. (AAP) , AutoNation, Inc. (AN) , Bed Bath & Beyond Inc. (BBBY) , Carmax, Inc. (KMX) �, Nordstrom Inc. (JWN) �, PetsMart, Inc. (PETM) �, Ross Stores, Inc. (ROST) , Staples, Inc. (SPLS) �, Target Corp. (TGT) �, and Urban Outfitters, Inc. (URBN) .
5 Best Defensive Stocks To Invest In Right Now: WellPoint Inc.(WLP)
WellPoint, Inc., through its subsidiaries, operates as a health benefits company in the United States. The company offers various network-based managed care plans to large and small employer, individual, Medicaid, and senior markets. Its managed care plans include preferred provider organizations; health maintenance organizations; point-of-service plans; traditional indemnity plans; and other hybrid plans, including consumer-driven health plans, hospital only, and limited benefit products. The company also provides various managed care services comprising claims processing, underwriting, stop loss insurance, actuarial services, provider network access, medical cost management, disease management, wellness programs, and other administrative services to self-funded customers. In addition, it offers specialty and other products and services, including life and disability insurance benefits; dental, vision, and behavioral health benefit services; radiology benefit management; personal health care guidance; and long-term care insurance. Further, the company serves as an intermediary providing administrative service for the Medicare program that offers coverage for persons, who are 65 or older and for persons who are disabled or with end-stage renal disease. WellPoint, Inc. markets its products through a network of independent agents and brokers, consultants, in-house sales force, or Internet. The company, formerly known as Anthem, Inc., was founded in 1944 and is headquartered in Indianapolis, Indiana.
Advisors' Opinion:- [By Sean Williams]
Wednesday, April 24
Eli Lilly (NYSE: LLY ) : Lilly is in the midst of a very dangerous period in its company's history, since it's set to lose a good chunk of its revenue to patent expirations between now and 2017. Reports from Eli Lilly have confirmed that the company is planning layoffs to reduce expenses, but a report by The Wall Street Journal indicated that layoffs could reach as many as 1,000 people. It's therefore extremely important -- especially considering that so many income investors rely on Lilly's dividend -- to keep an eye on what the company has to say about what's going on in its pipeline and what actions it's taking to reduce costs. Lilly's first-quarter expectations are for 1% sales growth and a 14% jump in EPS, but I'm not convinced that they'll reach those targets. WellPoint (NYSE: WLP ) : This will be one of the first looks we get at WellPoint, which purchased Amerigroup last summer to gain access to the millions of Medicaid members under its fold. The Patient Protection and Affordable Care Act is coming up on eight months until it's fully in effect, and insurers are looking as if they won't be in nearly as bad a shape as it was first suspected when the bill was passed. Keep your ears open for anything management might have to say about premiums, and certainly key on anything WellPoint has to say with regard to the PPACA, also known as Obamacare. Revneue is expected to jump 19% (mainly from its acquisition of Amerigroup) to $18 billion, while EPS are forecast to jump $0.04 to $2.38 from the year-ago period.�Thursday, April 25
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