At the end of the second quarter of this year, S&P 500 companies (not including financial stocks), had over $1.2 trillion in cash and short-term investments on their balance sheet. This cash position is at its historically high levels, observes Joon Choi in Systems & Forecasts.
So, what are corporations doing with this excess cash position? They are buying back their own stocks! And aggressive stock buybacks are pushing stock prices higher.
I have listed primary reasons for the current trend of buying back stocks:
1. The companies see their stocks as undervalued that would make good investments.
2. Buying back stocks enables companies to raise the earnings per share without actually increasing earnings.
3. Many company executives have stock option incentives tied to their performance, so they initiate or increase stock buybacks, which creates extra demand for the underlying stock, resulting in price appreciation.
Top 5 Sliver Companies To Invest In Right Now: Geron Corporation (GERN)
Geron Corporation, a biopharmaceutical company, develops therapies for cancer. Its clinical development product candidates include Imetelstat, a telomerase inhibitor, which is in Phase II clinical trials for the treatment of metastatic breast cancer, advanced non-small cell lung cancer, thrombocythemia, and myeloma. The company was founded in 1990 and is based in Menlo Park, California.
Advisors' Opinion:- [By Paul Ausick]
The most heavily traded and wildly swinging Nasdaq stock today is Geron Corp. (NASDAQ: GERN). Shares are down 61.70% at $1.69 in a 52-week range of $0.98 to $7.79. The company has been ordered to put a hold on an investigational new drug application. Geron�� share volume was more than 11-times the daily average of around 4.5 million shares traded.
- [By Maria Armental and Anna Prior]
Among the companies with shares expected to actively trade in Thursday’s session are Lululemon Athletica Inc.(LULU), Restoration Hardware Holdings Inc.(RH) and Geron Corp.(GERN)
- [By Jon C. Ogg]
Geron Corp. (NASDAQ: GERN) is a continuation of one the dumbest stories out there. This company has developed severe trust issues for causing losses galore in the past. Then its test results almost created a double to a high of $7.79, before falling all the way down to $5.21 in the same day. Then shares were down 10% more at $4.67 on active volume yet again on Friday. Those who did not take the warning about trust here yesterday probably feel pretty dumb.
10 Best Sliver Stocks To Buy For 2014: Deutsche Bank AG (LBND)
Deutsche Bank AG is a global investment bank. The Company offers a variety of investment, financial and related products and services to private individuals, corporate entities and institutional clients around the world. The Company operates through such divisions as: Private and Business Clients, Asset and Wealth Management, Corporate Banking and Securities, Global Transaction Banking and Non-Core Operations Unit. Deutsche Bank AG is active domestically and in various countries, through the network of numerous branches. In February 2014, the Company and its related bodies corporate ceases to a share holder in the capital of the Company. Advisors' Opinion:- [By Donald van Deventer]
Long-duration Treasury Exchange-Traded Funds: (TLH), , (IEF), (DTYL), (DLBL), (ILTB), (TENZ), (ITE), (TLO), (EDV), (VGIT), (VGLT), (TMF), (TYD), (LBND), (UBT), (UST), (TMV), (TYO), (DSTJ), (DSXJ), (SBND), (PST), (DTYS), (DLBS), (TBF), (TTT), (TYNS), (TYBS), (TBX).
10 Best Sliver Stocks To Buy For 2014: Pampa Energia S.A.(PAM)
Pampa Energia S.A., through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Argentina. It has an installed hydro electricity generation capacity of approximately 2,217 megawatts. The company also joint-controls the operation and maintenance of the high-tension transmission network covering 10,613 kilometers (km) of own lines, as well as 6,110 km of high-tension lines belonging to Empresa de Transporte de Energ� El�tricapor Distribuci� Troncal de la Provincia de Buenos Aires Sociedad An�ima Transba S.A. It distributes electricity to approximately 3.5 million residential, commercial, and industrial customers. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energia S.A. in September 2008. Pampa Energia S.A. was incorporated in 1945 and is headquartered in Buenos Aires, Argentina.
Advisors' Opinion:- [By Jake L'Ecuyer]
Leading and Lagging Sectors
In trading on Wednesday, utilities shares were relative leaders, up on the day by about 0.46 percent. Top gainers in the sector included PPL (NYSE: PPL), Empresa Distribuidora y Comercializadora Norte SA (NYSE: EDN), and Pampa Energia SA (NYSE: PAM). Telecommunications services sector was the top decliner in the US market on Wednesday. - [By Jake L'Ecuyer]
Leading and Lagging Sectors
Utilities stocks gained Thursday, with Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE: SBS) leading advancers. Among the leading sector stocks, gains came from Companhia Paranaense de Energia (NYSE: ELP), Pampa Energia SA (NYSE: PAM) and CenterPoint Energy (NYSE: CNP). - [By Garrett Cook]
Utilities shares fell around 0.30 percent in trading on Friday. Top losers in the sector included Pampa Energia SA (NYSE: PAM), revesed loses and is currently up 1.75 percent, and Korea Electric Power (NYSE: KEP), off 3.16 percent.
- [By Eddie Staley]
Utilities shares rose 0.26 percent in today’s trading. Top gainers in the sector included Pampa Energia SA (NYSE: PAM), up 2.88 percent, and New Jersey Resources (NYSE: NJR), up 2.39 percent.
10 Best Sliver Stocks To Buy For 2014: Vanguard Long Term Bond ETF (BLV)
Vanguard Bond Index Funds (the Fund), formerly Vanguard Long-Term Bond ETF, seeks to track the performance of a market-weighted bond index with a long-term, dollar-weighted average maturity. It employs a passive management or indexing strategy designed to track the performance of the Barclays Capital U.S.Long Government/Credit Bond Index (the Index). The Index includes all medium and larger issues of the United States Government, investment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities of greater than 10 years and are publicly issued. The Fund invests by sampling the Index, meaning that it holds a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics. All of the Fund�� investments will be selected through the sampling process, and at least 80% of its assets will be invested in bonds held in the Index. The Fund�� investment advisor is The Vanguard Group, Inc. Advisors' Opinion:- [By GURUFOCUS]
In addition to individual stocks several funds pay a monthly dividend. Below is a sampling of these:
Monthly Bond Funds- iShares Barclays 1-3 Year Credit Bond (CSJ) | Yield: 1.29%
- Vanguard Short-Term Bond ETF (BSV) | Yield: 1.25%
- Vanguard Intermediate-Term Bond ETF (BIV) | Yield: 2.96%
- Vanguard Long-Term Bond ETF (BLV) | Yield: 4.42%
10 Best Sliver Stocks To Buy For 2014: Cheniere Energy Inc.(LNG)
Cheniere Energy, Inc., through its subsidiaries, engages in the ownership and operation of liquefied natural gas (LNG) receiving terminals and natural gas pipelines in the Gulf Coast of the United States. The company develops LNG receiving terminal projects on Sabine Pass LNG in western Cameron Parish, Louisiana on the Sabine Pass Channel; Corpus Christi LNG near Corpus Christi, Texas; and Creole Trail LNG at the mouth of the Calcasieu Channel in central Cameron Parish, Louisiana. It also involves in the oil and natural gas exploration and development activities; and LNG and natural gas marketing business. The company was founded in 1983 and is based in Houston, Texas.
Advisors' Opinion:- [By William Patalon III]
At the end of our October 21 update on Cheniere Energy Inc. (NYSE: LNG) and the liquefied natural gas revolution, we promised to bring you an additional LNG recommendation.
- [By Benjamin Shepherd]
This bodes well for the future of American natural gas. US policy makers will be keen to support our European allies by moving ahead with liquefied natural gas export terminals. While that wouldn�� totally wean Europe from Russian natural gas, our exports would make a dent. That would be a boon for American producers such as Cimerax Energy (NYSE: XEC). It will also provide a boost for companies such as Cheniere Energy (NYSE: LNG), whose Sabine Pass liquefied natural gas terminal is already being converted to accommodate bi-directional flows. Its Gulf Coast location also provides relatively easy access to European markets.
- [By Robert Rapier]
Although it is the first of the first movers in this space, I think Cheniere Energy (NYSE: LNG) is fairly deep into speculative territory at this point. In 2012 Cheniere became the first to obtain approval from the Federal Energy Regulatory Commission (FERC) to export LNG to countries that lack a Free Trade Agreement (FTA) with the US. The non-FTA designation is important, because it covers many of the most lucrative LNG markets. Cheniere is the only company to have received the required approvals from both FERC and the US Department of Energy (DOE).
- [By Arjun Sreekumar]
Meanwhile, the number of LNG exporters is also projected to rise. Already, there is much enthusiasm about LNG export potential from North America. In the U.S., for instance, the Department of Energy has already approved two LNG projects to export gas to countries that don't have a free-trade agreement with the U.S. -- Cheniere Energy's (NYSEMKT: LNG ) Sabine Pass terminal in Louisiana, which was greenlighted in 2011, and the Freeport LNG project in Texas, a $10 billion facility whose general partner, Freeport LNG-GP, is 50% owned by ConocoPhillips (NYSE: COP ) , which received permission last month.
10 Best Sliver Stocks To Buy For 2014: Ituran Location and Control Ltd (ITRN)
Ituran Location and Control Ltd. (Ituran), incorporated in February 1994, is engaged in the provision of location-based services and machine-to-machine wireless communications products for use in stolen vehicle recovery, fleet management and other applications. The Company operates in two segments: location-based services and wireless communication products. During the year ended December 31, 2012, 76.2% of its revenues were attributable to its location-based services. As of December 31, 2012, Ituran provided its services in Israel, Brazil, Argentina and the United States to approximately 276,000, 238,000, 131,000 and 22,000 subscribers, respectively. In 2012, 23.8% of its revenues were attributable to the sale of its wireless communications products.
Location-Based Services
The Company�� stolen vehicle recovery and tracking services, which it refer to as SVR services, enable it to locate, track and recover stolen vehicles for its subscribers. The Company�� customers include both individual vehicle owners who subscribe to its services directly and insurance companies that either require their customers to install a security system or offer their customers financial incentives to subscribe to SVR services, such as its. In certain countries, insurance companies directly subscribe to its SVR services and purchase automatic vehicle location (AVL) products supporting these SVR services from us on behalf of their customers. The Company�� fleet management services enable corporate customers to track and manage their vehicle. It markets and sells its services to a range of vehicle fleet operators in different geographic locations and industries. As of December 31, 2012, the Company provided its services to approximately 81,000 end-users through 21,000 corporate customers in Israel, Brazil, Argentina and the United States.
Personal locator services, which it offers allow customers to protect merchandise and equipment. In addition, through a call center it provides ! 24-hour round the clock on-demand navigation guidance, information and assistance to its customers. As of December 31, 2012, the Company provided personal locator services in Israel, Brazil and Argentina and, as of December 31, 2012, it had approximately 7,500 subscribers to this service. The Company�� call center services include the provision of traffic reports, help with directions and information on the location gas stations, car repair shops, post offices, hospitals and other facilities. The Company provides its concierge services to its subscribers in Israel, Argentina and Brazil. As of December 31, 2012, it had approximately 128,000 subscribers to its concierge service
Wireless Communications Products
The Company�� wireless communications products employ short- and medium-range communication between two-way wireless modems and are used for various applications, including AVL. Its AVL products enable the location and tracking of vehicles, as well as assets and persons, and are used by it primarily to provide SVR and fleet management services to its customers. Each subscriber to its SVR services has its AVL end-unit installed in his or her vehicle. Subscribers to services for locating equipment and merchandise will use its SMART products. The Company�� wireless communications products for AVL applications include: Base Site, Control Center, global positioning systems/ beneral packet radio service (GPS/GPRS)-based products and SMART. Base Site is a radio receiver, which includes a processor and a data computation unit to collect and send data to and from transponders and send that data to control centers as part of the terrestrial infrastructure of the location system. Control Center is a center, which consists of software used to collect data from various base sites, conduct location calculations and transmit location data to various customers and law enforcement agencies.
Global positioning systems/ beneral packet radio service (GPS/GPRS)-based products! include ! navigation and tracking devices installed in vehicles. SMART is a portable transmitter installed in vehicles (including motorcycles) that sends a signal to the base site, enabling the location of vehicles, equipment or an individual. The Company maintains 103 base stations in Israel. The provides radio frequency (RF) based products and services only in the metropolitan areas of Sao Paulo, Campinas, Americans and Rio de Janeiro, in Brazil. It operates throughout Brazil in providing GPS/GPRS based products and services. The Company operates only in the metropolitan area of Buenos Aires with the RF technology, in Argentina. The Company operates throughout Argentina in providing GPS/GPRS based products and services for fleet management. It provides GPS/GPRS products and services throughout the United States.
The Company competes with Eden Telecom Ltd. (Pointer), Skylock Ltd, LoJack Corporation, Car System, Megatrans, Pointer Localizacion y Asistencia S.A, OnStar Corporation, Sky Link Corporation, Spireon, Air Cept Corporation, SysLocate, GoldStar, PassTime, Guide Point, Sky Patrol, Sky Guard, I-Metrik, GPS Insight, Trimble, Network Fleet, Street Eagle, FleetMatics , Navtrack, Teletrac, Trim Track, FleetBoss, Sascar, Omnilink and Hawk Corporation.
Advisors' Opinion:- [By Matthew Indyke and Brian Zen]
Four of Klarman�� stocks include PDLBioPharma (PDLI), Ituran Location and Control (ITRN), BP (BP), and Microsoft (MSFT). What these companies have in common are annually increasing total revenues, annually increasing cash flows, and gradually decreasing operating expenses and debt. Additionally, they show a clear value focus with P/E ratios no greater than 15. And even when stocks like these go through a troubling period brought on by a sagging economy or major scandal, they have an ability to bounce back.
10 Best Sliver Stocks To Buy For 2014: Network Exploration Ltd (NET)
Network Exploration Ltd. is an exploration and development-stage company. The Company�� principal business activities include the exploration of minerals in its mineral properties. It focuses on base and precious metal properties in North and South America. Its activities include the process of exploring its mineral properties, reviewing and subsequently acquiring mineral properties and conducting exploration programs to determine whether these properties contain ore reserves that are recoverable. The Picha copper-silver project is located within the Tertiary Volcanic Arc of Southern Peru. The Pistala project is located east of the NW-SE trending Incapquio fault system in the Department of Tacna, Southern Peru. The Company is in the business of mineral exploration in Canada, Chile and Peru. Network Exploration Chile Limitada is its wholly owned subsidiary. Advisors' Opinion:- [By Holly LaFon]
MSCI All Country World Index (Net) is an unmanaged index comprised of 44 country indices comprising 23 developed and 21 emerging market country indices and is calculated with dividends reinvested after de duction of withholding tax. The Index is a trademark of Morgan Stanley Capital International and is not available for direct investment.
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