Time to Go Overweight on Obesity-Drug Makers?

The following video is part of our "Motley Fool Conversations" series, in which health-care editor/analyst David Williamson and consumer-goods editor and analyst Austin Smith discuss topics around the investing world.

In this video, David and Austin discuss the recent news surrounding obesity-drug makers. With an overwhelmingly favorable FDA advisory panel recommending approval for Qnexa by a 20-2 vote, what does that mean for its maker, VIVUS, and for its competitors Arena Pharmaceuticals and Orexigen? Is Qnexa poised to reap all of the rewards?

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Health-care investors are always looking for the next big breakthrough. Motley Fool co-founder David Gardner recently identified a small-cap health-care company that he believes is poised for monster returns. To uncover this top pick today, enjoy the special free report: "Discover the Next Rule-Breaking Multibagger." Don't miss out on this limited-time offer and your opportunity to discover this game-changing company before the market does. Click here to access your report -- it's totally free.

Jay Kubassek’s Bio – Review Life

Life is gift given to us to cherish and make the best out of our existence and everyone is unique in his own way. No two persons are alike. Even siblings are uniquely built to have his own identity and way of thinking.

Jay Kubassek’s Bio describes the different lifestyle of people particularly those of marketing entrepreneurs. It also describes the life of Jay Kubassek before and after the success of Carbon Copy Pro and PRO University. Jay as well as thousands of marketing distributors out there are part of the middle class family who wanted to make a difference of their lives and dream of becoming a millionaire before the age of 30.

It is always easy to dream but too hard to make it happen. Each one of us has different personal challenges and goals that we have to find the answers. Jay Kubassek’s Bio gives several alternative solutions on how to tackle these differences.

It’s easy to list down goals but difficult to make it possible. Each one of us has different personal challenges and objectives that have to be answered as time goes by. Jay Kubassek’s Bio provide several options on how face this uncertainties.

As of today, thousands of people have benefited this marketing program around the world. Marketing experts help in translating the marketing materials to more than 60 languages to accommodate thousands of members all over the world.

Aside from Carbon Copy Pro and PRO University, Jay is now venturing outside the marketing and advertising arena into another business fields like film industry, real state development and many more.

Jay believes in using all his capacities to its fullest extent, you don’t have to sit and wait for opportunities to knock on the door; individuals have to uncover it and make the very best of what are offered. Poverty is not the cause but the result of the person’s inability to find a better way of living.

With his financial achievements, Jay believes in giving back to the community and for several years now he is recipient to numerous charitable institutions here and around the globe. Some of his chosen institutions are Red Cross, The Gentlemen’s Fund, The Name Campaign in Africa, The Children’s Institute for Autism, The Tracy McGrady Basketball Camp, Mount Sinai Juvenile Diabetes and the National Breast Cancer Foundation.

Jay is also involved in several extreme sports activities that are not only fun but also dangerous.

Jay Kubassek’s Bio is a very interesting life story to read. If you want to know more about Jay and how he climbed through success, then visit Bradley Stephens’ site.

Ben Graham book value buys

Is book value per share important? By itself, no. But when compared to the company�s stock price, it�s enormously important. If a company�s stock price is less than its book value per share, the company could theoretically be liquidated for more money than if sold on the stock exchange.

�Here's three of our favorite book value buys: Eaton (ETN), Fred�s, Inc. �A� (FRED) and Thermo Fisher Scienti?c (TMO).

In addition, quality companies with low price-to-book value (P/BV) ratios have outperformed companies with higher valuations for the past three, ?ve and 10-year periods.

To ?nd the best companies with low P/BV ratios, I screened my database using several criteria: P/BV ratios less than 2.00; Value Line Financial Strength Ratings of B++ or better; low price-to-earnings (P/E) ratios; dividend yields of 1.0% or higher and good earnings prospects for the next 12-month and ?ve-year periods.

Founded in 1916, Eaton manufactures a variety of products including electrical systems and components for power management, truck transmissions and ?uid power systems.

It is the world�s largest maker of engine valves for cars and small trucks. It also provides services for industrial, mobile and aircraft equipment.

Eaton�s sales increased 13% and EPS soared 30% during the last 12 months, spurred by sales growth in all business segments and management�s cost-saving measures.

I forecast sales growth of 7% and earnings growth of 13% during the next 12-month period. Sales in Europe will likely decline, but U.S. sales will more than pick up the slack.

With a forward P/E of just 9.8 and a dividend yield of 3.4%, ETN shares are clearly undervalued. Eaton has a strong balance sheet as evidenced by Value Line�s Financial Strength Rating of A+.
I expect the stock price to reach my Minimum Sell Price of 76.73 within one to two years. ETN is low risk.

Founded in 1947 in Memphis, Fred�s, Inc. �A� sells discount merchandise including household goods, pharmacy items, food, pet supplies, clothing and linens from 701 stores in 15 states in the Southeast and Midwest.

The stores also offer a large selection of generic drugs, which are in high demand and highly pro? table. Average store size is modest, about 14,400 square feet.

U.S. consumers continue to seek bargains when shopping for food, clothing and household items even though the economy is improving. Major retailers are aggressively cutting prices to compete for each retail dollar.

Sellers of luxury goods and high-end merchandise, such as Saks, Tiffany�s and Coach, are producing solid sales, but their stock prices are too high. The stock prices of discount and dollar store companies such as Ross Stores,

T J Maxx, Dollar Tree and others that are enjoying strong sales are also too high to buy right now. Fred�s is a small discount retailer with sales of less than $2 billion, and its stock price is very reasonable.

Same-store sales have been ?at during recent months, but I expect much better sales growth during the next several quarters as Fred�s has opened 26 new stores in 2011 and has renovated 413 stores during the past two years.

I expect sales to increase 7% and earnings to rise 12% during the next 12 months. The retailer has added pharmacies to half of its stores and is working to add pharmacies to most of its remaining stores.

In addition, Fred�s will continue to open many new stores and renovate existing stores. FRED shares are undervalued at 1.07 times book value and at 13.5 times forward earnings per share.

The Value Line Financial Strength Rating is B++, and the dividend yield of 1.8% is decent. I expect the strong demand for merchandise offered at low prices to continue during the next several years. I advise buying FRED at or below $14.93 and selling when the stock price hits $21.11. FRED shares are low risk.

Thermo Fisher Scienti?c was created in 2006 when Thermo Scienti? c and Fisher Scienti? c merged. The combined company is a leading provider of life science and laboratory analytical instruments, equipment, reagents and supplies.

Thermo Fisher also provides software and services for medical and scienti?c research laboratories.

Management is focusing on further expanding operations in China, India and Brazil to enhance growth. In addition, exciting new products and recent acquisitions will boost Thermo Fisher�s sales and earnings.

Sales increased 10% and EPS rose 20% during the last 12 months. Sales will likely advance 7% and EPS 12% or more during the next 12 months.

The price-to-book value ratio for TMO is 1.28 which is low for a health care company. At 10.8 times forward 12-month EPS, TMO shares are inexpensive.

I advise buying Thermo Fisher at 54.80 or below and selling when my Minimum Sell Price of $79.45 is achieved. TMO is low risk.



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Nokia: S&P Revises Credit Outlook To Negative From Stable

Standard & Poor’s today revised its credit outlook on Nokia (NOK) to negative from stable, and warned that the company’s rating could be downgraded in the next 12-18 months if the profitability of the company’s handset segment fails to recover over the next two quarters. For now, S&P maintains the company’s A long-term rating and A-1 short-term rating.

“The negative outlook reflects a material deterioration of the historically� industry leading margins of Nokia’s Devices and Services segment, a negative trend which began at the end of 2008 just after the onset of the recent global economic downturn, S&P analyst Matthias Raab said in a statement. “It also reflects our expectations that a material improvement in profitability could be hampered by intense competition for smart phones and traditional mobile phones, and also by Nokia’s rather weak competitive position for high-end smart phones.”

Earlier: Nokia: Bernstein Says The Stock Could Spiral Even Lower

NOK is down 9 cents, or 1%, to $8.61.

Why Cabot Microelectronics May Be About to Take Off

Here at The Motley Fool, I've long cautioned investors to keep a close eye on inventory levels. It's a part of my standard diligence when searching for the market's best stocks. I think a quarterly checkup can help you spot potential problems. For many companies, products that sit on the shelves too long can become big trouble. Stale inventory may be sold for lower prices, hurting profitability. In extreme cases, it may be written off completely and sent to the shredder.

Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Cabot Microelectronics (Nasdaq: CCMP  ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Cabot Microelectronics doing by this quick checkup? At first glance, OK, it seems. Trailing-12-month revenue increased 2.0%, and inventory increased 6.5%. Over the sequential quarterly period, the trend looks worrisome. Revenue dropped 6.9%, and inventory grew 2.9%.

Advanced inventory
I don't stop my checkup there, because the type of inventory can matter even more than the overall quantity. There's even one type of inventory bulge we sometimes like to see. You can check for it by examining the quarterly filings to evaluate the different kinds of inventory: raw materials, work-in-progress inventory, and finished goods. (Some companies report the first two types as a single category.)

A company ramping up for increased demand may increase raw materials and work-in-progress inventory at a faster rate when it expects robust future growth. As such, we might consider oversized growth in those categories to offer a clue to a brighter future, and a clue that most other investors will miss. We call it "positive inventory divergence."

On the other hand, if we see a big increase in finished goods, that often means product isn't moving as well as expected, and it's time to hunker down with the filings and conference calls to find out why.

What's going on with the inventory at Cabot Microelectronics? I chart the details below for both quarterly and 12-month periods.

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FQ = fiscal quarter.

Let's dig into the inventory specifics. On a trailing-12-month basis, work-in-progress inventory was the fastest-growing segment, up 64.7%. On a sequential-quarter basis, work-in-progress inventory was also the fastest-growing segment, up 8.0%. Although Cabot Microelectronics shows inventory growth that outpaces revenue growth, the company may also display positive inventory divergence, suggesting that management sees increased demand on the horizon.

Foolish bottom line
When you're doing your research, remember that aggregate numbers such as inventory balances often mask situations that are more complex than they appear. Even the detailed numbers don't give us the final word. When in doubt, listen to the conference call, or contact investor relations. What at first looks like a problem may actually signal a stock that will provide the market's best returns. And what might look hunky-dory at first glance could actually be warning you to cut your losses before the rest of the Street wises up.

I run these quick inventory checks every quarter. To stay on top of inventory and other tell-tale metrics at your favorite companies, add them to your free watchlist, and we'll deliver our latest coverage right to your inbox.

• Add Cabot Microelectronics �to My Watchlist.

F5 Networks: Undervalued Now or Back to Earth?

F5 Networks Inc. (FFIV) had a “bad” earnings report released yesterday that has them in the crosshairs of investors looking to take profits and shed exposure. The process has been systemic, as anyone associated with networks or cloud computing has taken a beating today. As I write this, Cisco (CSCO), Aruba Networks (ARUN) and Juniper Networks (JNPR) have lost about 1.5%, 6.7% and 3.7% respectively. On the cloud side, Riverbed Networks (RVBD) was down 8% today, with Citrix Systems (CTXS) also losing 7%. I am taking a look at F5 to determine whether there could be some potential value here from investors overreacting to a lukewarm earnings report. I find it hard to believe that a company can lose 25% of their value in one day based on reason alone.

Earnings miss: F5 Networks Inc. has lost over 20% of their market value in one day. Now, to some that would be a red flag and signal to head for the hills. To me, I find it hard to believe that one slight skip on earnings can change the fundamental business model or strategic position of a company. However, it has happened before.

The problem with this situation is that the beating the stock is taking does not match the numbers they released. Now, they missed revenue by $2 million on $269 million versus $271 million. Their profit per share, however, was a solid 88 cents compared with analyst estimates of 83 cents. Their fiscal year Q2 guidance is 84 to 86 cents a share on $275-280 million in revenue, versus analyst estimates of 85 cents and $281 million. There was a strange lack of large orders in the report, which could be interpreted as a negative forward indicator. To me, however, it doesn’t seem as though a company that grew revenue 41% over 2010 Q1 and beat earnings per share guidance should lose a quarter of their value overnight. Keep in mind that the stock had a nice run since October, up 52%, and people might simply be taking profits.

Another angle is that company management has been sandbagging earnings to make sure they beat. In this case, the profit beat hasn’t been as well received by the market as the revenue miss. The price of the stock, which has risen so quickly, might well have priced in a revenue AND profit beat.

Credit Suisse analyst Paul Silverstein seemed to enjoy the earnings report, however. He raised his valuation from $103 to $134 due to best in class revenue growth, margins, EPS and visibility. His guidance for fiscal 2011 included a decrease to $1.15 billion in revenue from $1.16 billion, but an increase in EPS to $3.65 from $3.59. His estimates relied on the assumption that their file virtualization solutions would accelerate in growth. So, what’s file virtualization?

Competitive landscape: File virtualization is basically a layer of intelligence over a network that allows storage devices to move and change their file locations to optimize connectivity and access without disrupting users. F5 has a solution that allows management over a variety of storage environments. Nigel Burmeister, F5’s director of product marketing says the ARX file virtualization:

Natively supports multivendors [and] multiplatforms. Today, most computer data that's file based speaks NFS or CIFS. Cloud storage is typically object based so you now have this translational software that can be used as a gateway. It's a heterogeneous gateway that does cloud storage and works with other forms of NAS.

That sounds pretty good. F5 is also a leading provider of network traffic managing products and systems. Their expertise is in layer 4-7 switching, with little experience outside this niche. As such, their growth is strongly tied to the growth of the 4-7 switching. With little material revenue coming from outside this realm, the earnings report may have validated many investors’ beliefs that F5’s growth has slowed down considerably in recent years. I believe the price that F5 traded at prior to today took into account accelerating growth that was not substantiated by earnings.

Valuation: I’m assuming growth in revenue between 20-25% for the next four to five years. At these levels, I am assigning a price floor of $80 and a ceiling of $110 for FFIV. This is due to a number of factors inherent in both the industry and F5 itself. I believe that their growth, when adjusted for seasonality and the recent downward turn in 2009, has actually slowed considerably over the last five years. Their exclusivity in layer 4-7 switching is a double edged sword, as they are a niche leader but also married to growth in the segment and potential technological obsolescence. I feel they will expand their product library, but that right now the price is too high for much of that value to be realized. There is, however, the potential for a high upside for the right investor; if cloud computing becomes the cash train many believe it will be and F5 turns out to be a market leader, they are in a position to grow at a higher rate.

Ratios: They have solid and consistent profitability mixed with great cash flows. Their FCF margin stands at 34.13%, increased from just 26.9% in 2005. Their liquidity situation is great, which makes sense with all that sustainable cash inflow piling up. From a relative perspective, they are less attractive. Their PE stands roughly at 57 as I write this article, which is much better than it was yesterday when it was stuck in the mid seventies. Taken in the context of their historically mid thirties PE, and I have trouble justifying their current valuation. However, you consider someone like RVBD who has a PE of over 200, and FFIV starts to look a little more attractive.

Conclusions: F5 is an excellent company. I believe if their ARX appliance and file virtualization solutions continue to take off, they are in a position to greatly capitalize on the arrival of cloud computing as a viable business solution. However, even now their valuation is too high for me to jump in. I believe if they were priced at $80, I would be able to give this stock a firm Buy recommendation. At $108, however, it is too near the top of my 12 month price ceiling for me to shell out my hard earned cash. This is no knock against the company in general, I just believe there are other fundamental plays in this industry that can provide a higher margin of safety. For the right investor, however, the potential upside of a cloud computing market leader could be enough to buy this stock, especially after the beating it has taken today.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

HP FY Q2 Revs, EPS Edge Estimates; Boosts Full-Year Guidance

Hewlett-Packard (HPQ) reported slightly better-than-expected results for FY Q2 ended April 30.

The computing giant posted revenue of $30.8 billion, up 13% from a year ago, and ahead of the Street at $29.8 billion. Non-GAAP EPS was $1.09 a share, ahead of the Street at $1.05. Non-GAP operating margin expanded to 11.2%, from 10.4% a year ago. CEO Mark Hurd said in a statement that the company had “an exceptional quarter with strong performance across every region.”

Revenue was up 11% in the Americas, 11% in EMEA and 19% in Asia-Pacific. Adjusted for currency, revenue was up 9% in the Americas, 7% in EMEA and 10% in Asia Pacific.

Services revenue grew 2%; enterprise storage and servers jumped 31%, driven by a 54% rise in industry standard servers. Software was down 1%. Personal Systems Group – the PC business – posted a 20% increase in units and a 21% rise in revenue. Notebook revenue was up 17%, while desktop was up 27%.

Imaging and printing group revenue was up 8%, with supplies up 6%, commercial hardware up 13%, and consumer hardware up 16%. Printer units were up 9%.

Financial services revenue was up 18%.

For Q3, the company sees revenue of $29.7 billion to $30 billion, with non-GAAP EPS of $1.05-1.07; the Street consensus has been $29.7 billion and $1.07.

For the full year, the company is projecting 8%-9% revenue growth; the company lifted its non-GAAP EPS forecast to a range of $4.45 to $4.50, from $4.37 to $4.44.

In late trading, HPQ is up 79 cents, or 1.7%, to $47.58.

Stocks Finish in the Red

Stocks finished slightly lower, led down by energy and industrial shares, but shares of online business-review site Yelp skyrocked 63% to more than $24 a share on their first day of trading. Brendan Conway has details on The News Hub. Photo: AP

Stocks finished slightly lower, with the Dow industrials seeing their first weekly loss in three weeks despite closing above 13000 on Tuesday.

Without major economic data releases or corporate news to provide direction, stocks drifted lower. Indexes fell on the open and continued downward until midafternoon on Friday, then recovered and peaked briefly into positive territory before falling back.

The Dow Jones Industrial Average lost 2.73 points, or 0.02%, to 12977.57. The Standard & Poor's 500-stock index dropped 4.46 points, or 0.3%, to 1369.63, and the Nasdaq Composite closed down 12.78 points, or 0.4%, at 2976.19.

The Dow fell less than the other indexes primarily on the strength of International Business Machines, which rose $1.28, or 0.7%, to $198.81. The move accounted for nearly 10 points in the Dow's performance.

Otherwise, seven of the S&P's 10 sectors were lower, led by energy and industrial shares. Blue chips were weighed down by American Express, which declined 58 cents, or 1.1%, 52.99.

Meanwhile, shares of online business-review site Yelp began trading in their stock-market debut, rising 9.58, or 64%, to 24.58.

Enlarge Image

Close Associated Press

Traders on the floor of the New York Stock Exchange earlier this week.

FX: Prepare For Short But Busy Week

For North American traders, it will be a shortened trading week broken up by July 4th or Independence Day on Wednesday. The mid-week nature of this holiday means that most U.S. traders will either take the entire week off or come into work for only 2 days. Although our desks will be manned the entire week, if we were to take time off, it would certainly be Monday and Tuesday and not Thursday and Friday. The reason is because it's a busy trading week filled with market moving events and economic data, the most important of which are due at end of the week. The agreement by European leaders to directly recapitalize banks helped to restore confidence in European assets and prevented an exacerbation of Europe's debt crisis. Without today's announcements, currencies and equities would be trading at much lower levels, putting us in a very different position as we head into the new trading week.

The outcome of the European summit has global ramifications not only for asset markets but also policymakers around the world. Three central banks have monetary policy announcements next week and each one of them have attributed part of their dovish monetary policy statement to the Eurozone's debt crisis. Now that there has been some relief, there is also less pressure on these central banks to cut interest rates or increase their asset purchase programs. The Reserve Bank of Australia, the Bank of England and the European Central Bank will have a lot more breathing room this week and could very well reserve their stimulus for a more desperate time in the global economy.

The past week has been focused on Europe but this should change to some degree with non-farm payrolls and other important pieces of U.S. data on the calendar. Job growth is expected to remain weak but economists are looking for a small uptick after 2 months of particularly bad NFP reports. In addition to payrolls, manufacturing and non-manufacturing ISM reports are scheduled for release along with factory orders and the usual leading indicators for NFPs. This morning's U.S. economic reports were mixed. Personal incomes grew by 0.2 percent in May, same pace as the previous month while personal spending remained flat. The PCE, a measure of inflation dropped 0.2 percent while core prices rose a mere 0.1 percent. Consumer confidence was revised lower according to the University of Michigan report but manufacturing activity in the Chicago region accelerated slightly. As with most of this week's U.S. economic reports, the changes are not significant enough to alter the Federal Reserve's outlook for monetary policy.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

1 Biotech With Room to Run

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This video is part of our "Motley Fool Conversations" series, in which health-care editor/analyst David Williamson discusses topics around the investing world.

In this edition, David takes a closer lok at Affymax, which just saw approval for Omontys, its anemia drug for patients on dialysis. Can Omontys steal significant share of this multibillion-dollar market with its aggressive pricing scheme despite the heavyweights in the industry? Keep watching, and find out about another company poised to profit from Omontys' success.

Health-care investors are always looking for the next big breakthrough. Motley Fool co-founder David Gardner recently identified a small-cap health-care company that he believes is poised for monster returns. To uncover this top pick today, enjoy the special free report: "Discover the Next Rule-Breaking Multibagger." Don't miss out on this limited-time offer and your opportunity to discover this game-changing company before the market does. Click here to access your report -- it's totally free.

What Emerging Markets Tell Us About the U.S.

Investors looking to determine the next move for the U.S. market may want to turn their focus abroad. Both stocks and bonds in the emerging markets are flashing a potential warning signal that could have broader implications for the outlook here at home.

Emerging-market equities, as gauged by the iShares MSCI Emerging Markets Index (NYSE:EEM) are sitting just a hair above their 200-day moving average. At Monday�s close of $41.94, EEM needed to fall only 1.8% to dip below its 200-day for the first time since late January. This would be an important development given the high sensitivity of the asset class to both global economic growth and broader liquidity conditions.

A hint as to the likely direction of EEM may be found in the four ETFs tied to the BRIC countries: iShares MSCI Brazil Index Fund (NYSE:EWZ), Market Vectors Russia ETF (NYSE:RSX), iPath MSCI India Total Return Index ETN (NYSE:INP), and iShares Trust FTSE China 25 Index Fund (NYSE:FXI), all of which closed below their 200-day MAs on Monday. RSX and INP have both been in bearish territory for two weeks, while the FXI and EWZ breaks are more recent.

That�s not all. Zooming out to a three-year view reveals that EEM is also in jeopardy of forming a broad head-and-shoulders top that could bring the ETF to $35 from its current level around $42. This could take months to play out, and often charts that look like they�re setting up in a head-and-shoulders don�t behave as they�re supposed to. Still, this is something to watch, not just for a trade but as another indication about the sustainability of the global growth/liquidity story.Click to Enlarge

Emerging-market stocks aren�t the only asset class in jeopardy of violating a key technical level. Wisdom Tree Emerging Markets Local Debt Fund (NYSE:ELD) — which reflects the performance of both bonds and currencies in the emerging markets — is also on the verge of slipping below its 200-day MA:

Alone, these chart patterns may not mean much. However, they are joined by breaks in both copper and Select Sector SPDR-Energy ETF (NYSE:XLE) below their 200-day moving averages, and a continued struggle by Select Sector SPDR-Materials ETF (NYSE:XLB) to stay on the bullish side of its 200:

There�s still a chance that the ETFs mentioned here could recover rather than breaking down from here — there are no sure things in technical analysis, after all. Still, these provide some guideposts for investors who are trying to gauge the next move in U.S. equities.

We Carry On - What Does A Disabled Vietnam Veteran Hero Have To Do With The Year Ahead?

In Bob Wieland's world, obstacles create opportunities and conquests breed inspiration.

In Tim McGraw�s song �WE CARRY ON� there is a lyric, �when our lives come undone, we carry on cause there�s promise in the morning sun, we carry on as the dark surrenders to the dawn, we were born to overcome, we carry on�.

The Aftermath Of A Volatile Year And The Challenges Ahead
As the market crawls to the finish line of one of the most volatile years in history, investors around the world contemplate the challenges and uncertainties which lie ahead in the year to come. It is questions like:

• What will be the outcome of the European Debt Crisis?
• Will a bank contagion result in bringing the economy to its knees as it did a few short years ago?
• Will our government finally come to an agreement in how to handle our sky rocketing deficit?
• Will the deficit solution involve severe tax increases or excessive cuts in the military which will affect our national security; making us less safe from those enemies who want nothing more than to do us harm?
• Is this unprecedented volatility caused by fear and uncertainty going to end badly, as volatility often does, as investors grow weary of seeing their life savings fluctuate so violently from one day to the next?

It�s difficult to find inspiration heading into the next year with some of the highest levels of unemployment we�ve seen in decades combined with high levels of poverty. What will happen to those most in need who are not able to help themselves or those that rely on a government that has recklessly spent tax payer money and seems to be in a perpetual stalemate as to what to do about it?

Waiting For A Hero To Emerge From The Ashes
We keep hearing, �be optimistic, markets tend to do well in election years�. As if some politician has the answers and he or she will bring this country back to prosperity, people will find jobs and we will see the end of poverty. We will accomplish this while strengthening our military and taking care of those who willingly sacrifice their lives to protect us and the freedom we cherish.

As our politicians continue to try to destroy each other for the sake of protecting their political futures instead of sacrificing themselves for the sake of the hard working Americans who are struggling, it�s difficult to believe that a hero will emerge.

When It Seems Like All Hope Is Lost � A Hero Emerges
If this were a Hollywood movie, the ideal time for a hero to emerge is when it seems that all hope is lost. One day, while sitting at my desk working endless hours after a year of facing the challenges and obstacles which the world economy has created, trying to help the business owners I represent face what seems like insurmountable challenges in the year ahead and the uncertainty retirees face after years of working hard for those few golden years of retirement � my hero emerged. In movies, I always like the idea of an unlikely hero and my unlikely hero was double amputee Vietnam Veteran war hero, Bob Wieland.

He Lost His Legs But He Didn�t Lose His Heart
Bob lost both legs in Vietnam when he stepped on a landmine while trying to save a fellow soldier. He was declared dead and put in a body bag alongside all of those brave heroes who gave their lives fighting for our freedom. It was an orderly who saw him moving in the body bag � he lost his legs but didn�t lose his heart and has been grateful to live life to its fullest ever since.

Upon returning home, Bob dedicated his life to motivating and inspiring people. Bob walked across America on his hands and arms in three years, he�s a four time world record holder in the bench press (competing against people who have legs) with a best lift of 507 lbs., he has completed the New York, Los Angeles and Marine Corp marathon and is the only double amputee to complete the grueling Ironman Triathlon in Kona, Hawaii as well as being the strength coach for the Green Bay Packers.

His list of accomplishments since returning home from Vietnam is endless. His disability inspired him to inspire others. The greatest accomplishment being that for each and every achievement, Bob has donated all of the proceeds from generous individuals who have sponsored him to the poor, the hungry and the disheartened who he�s met on his incredible journeys. Bob�s message is always �I lost my legs but I didn�t lose my heart�.

Inspiration When So Many Are So Uninspired � Dream Ride 3Bob and I spoke several times about his latest challenge, Dream Ride 3, where Bob will be riding coast to coast from his Dream Center in Los Angeles to Washington, DC, in an effort to set the world record as the first 65 year old (or older), to ride across America on a three wheeled hand cycle.

Bob will do this to help America reach out to fellow citizens by supporting our heroes: peace officers, firefighters, wounded veterans and youth who all deserve a hand up, as well as those in need due to our challenging economic times. In our conversation, Bob told me that his heart breaks for those in need and it�s his life mission to do what he can to help, motivate and inspire them.

Those Who May Have Legs But Have Lost Heart
In our conversation, we spoke of the many disheartened youth who see no hope or inspiration in their lives. Bob heard about my involvement as Chairmen of the Executive Council of Daytop NJ, an adolescent drug treatment center with 75 inpatient kids who are trying to turn their lives around after suffering the devastating effects of drug addiction.

Zoltek Shares Soar as Company Reports Strong Q1 Results (ZOLT)

Zoltek Companies Inc. (NASDAQ: ZOLT) shares are seeing a huge rally in today�s trading after the St. Louis, Missouri-based holding company announced strong first-quarter financial results.�

Zoltek shares rose to an intra-day high of $14.09 today, and at last check, the stock was up more than 41.39% to $13.39 on above average volume of 3.34 million.�

Zoltek reported net revenue of $47 million for the quarter ended December 31, 2011, up from $32.9 million reported for the same period in the previous year. ZOLT�s net income for the quarter was $9.7 million, or $0.28 per share for the first quarter, compared with a net loss of $1.6 million, or $0.05 per share reported for the same period in the previous year.�

ZOLT�s operating income for the first quarter was $8.2 million, compared with an operating loss of $1.2 million reported in the same period last year.�

Zsolt Rumy, Chairman and CEO of Zoltek, said that the company is pleased to report strong gains on both the top and bottom lines in the first quarter and continuation of the momentum it experienced in the fourth quarter of fiscal 2011.�

Rumy said that ZOLT�s performance resulted from a number of internal and external factors. According to Rumy, the increase in net revenue was due to the expanded customer base in the wind energy business and increased sales of composite intermediate products.�

Rumy also noted that ZOLT�s performance in the first quarter was a step toward achieving its goal to reach a $500 million revenue run rate in the next three years. Rumy said that wind turbine applications continue to represent the most significant near-term revenue growth potential and ZOLT is by far the leading suppliers of carbon fibers used in the most advanced wind turbines, producing up to 5 megawatts of electricity annually.�

ZOLT expects the large turbine segment of wind energy generation increase at an annual rate of 15%-25% for the next decade or more.�

CorMedix: Getting to the Core of Cardiorenal Disease

CorMedix Inc. (AMEX:CRMD) is a specialty pharmaceutical company that focuses on the licensing and development of therapeutic products for the treatment of cardiac and kidney (cardiorenal) disease. These product candidates include a risk-mitigated clinical development profile, target significant niche markets, and have a relatively low cost of development through potential commercialization. Cardiorenal disease includes a broad range of inter-related cardiovascular, kidney and metabolic conditions.

CorMedix has two products entering late stage clinical development

1. Neutrolin for the prevention of central venous catheter (CVC) infection and Clotting in hemodialysis (HD)

2. Deferiprone for the prevention of contrast induced nephropathy (CIN) in high-risk patients with chronic kidney disease (CKD)

The main focus for Cormedix investors initially will be on lead product candidate Neutrolin (CRMD003) (1.35% taurolidine, 4% citrate and 1000u/mL heparin), an antimicrobial catheter lock solution is anticipated to be ready for IDE submission to proceed to a pivotal study to support a future FDA medical device submission for marketing approval in the U.S. (PMA), as well as CE Mark clearance in Europe by year-end. The pivotal US study is slated to begin 1H11 with interim data anticipated early in 2012. Neutrolin combines the anti-coagulants (citrate and heparin) and the antimicrobial (taurolidine) in a liquid formulation to fill or “lock” central venous catheters (CVC). The initial indication for Neutrolin will be in HD patients with CVCs. However, there are several other potential uses including intensive care, total parenteral nutrition (TPN) and CVCs for delivery of chemotherapy agents.

The Market Opportunity for Neutrolin is anything but small for those of you who have never worked in an acute care (hospital setting): 80,000 HD catheter patients in the U.S., representing 12.5 million HD sessions per year. CVCs are subject to clotting and are associated with catheter-related bloodstream infection (CRBI). There are 160,000 CRBI episodes in the U.S. alone, 6,000 die annually, and the cost to US healthcare system is (roughly) an astounding $1 billion. The current standard of care (heparin) does not prevent CRBI.

Neutrolin for Prevention of CRBI will be supplied via catheter lock solution for the prevention of CRBI and maintenance of catheter function in HD patients. The solution will contain Taurolidine, a broad-spectrum antimicrobial, targeted to prevent infection and formation of biofilm. Unlike other antibiotics, there has been no observed bacterial resistance to Taurolidine – unlike antibiotics (>14,000 patients exposed), no systemic toxicity at levels 650x the amount contained in 5mL of Neutrolin. The lock solution also contains citrate and heparin as anti-coagulants to prevent thrombus formation and clotting (which is per normal use in the hospital). It is safe and well tolerated. No adverse events (AE’s) related to Neutrolin in catheter lock studies involving ~300 patients

Pivotal Study Plan

As mentioned above, Cormedix anticipates starting enrollment H1 2011 for Neutrolin’s prospective, multicenter, double blind, randomized, active comparator study. The study will have approximately 400 patients; study anticipated to be 15 months in duration with the following primary endpoints:

1. Freedom from catheter related bloodstream infection – time to event

2. Duration of time that adequate catheter function is maintained

Commercialization Plan

Initial U.S. launch by CorMedix in HD indication

o Intend to establish Neutrolin as standard of care for HD patients with CVC, expect inclusion on renal guidelines and dialysis providers policy & procedure protocols

Quality of care endorsements for improvement in performance criteria in dialysis networks

Reimbursement

o Apply for a J code

o Inclusion in bundle for dialysis as a separately billable drug

Apply for CE mark in EU as soon as quality systems in place

Apply for additional indications for CVCs and PICC lines in non-HD indications

IP Overview

Six (6) issued patents – protection through 2019-2025

Expected Clinical and Regulatory Milestones for CorMedix

1. Neutrolin (CRMD003) (1.35% taurolidine, 4% citrate and 1000u/mL heparin), an antimicrobial catheter lock solution, should receive IDE approval to proceed to a pivotal study to support a future FDA medical device submission for marketing approval in the U.S. (PMA), as well as CE Mark clearance in Europe by year-end. The pivotal U.S. study is slated to begin 1H11 with interim data anticipated early in 2012.

In addition to Neutrolin, Cormedix has one other ‘near-term’ opportunity in Deferiprone:

2. Deferiprone (CRMD001) is a novel oral, twice-daily formulation of an iron-binding / chelating drug with a Phase 2 study expected to begin 2Q10 with interim data anticipated in 4Q10. This trial will likely be followed by a larger, pivotal Phase 3 study under a Special Protocol Assessment (SPA) with the FDA. Deferiprone is being developed for the treatment of contrast induced nephropathy (kidney damage associated with medical imaging procedures).

3. CRMD002 – the development and commercialization of a readily available biomarker test for urine labile iron will be supportive to the development and subsequent potential commercialization of Deferiprone (CRMD001).

4. CRMD004 is a novel thixotropic (changes from semi-solid state to free-flowing liquid under pressure generated upon insertion / withdrawal from a catheter) gel formulation in pre-clinical development. CRMD004 could be combined with taurolidine, other antimicrobials, anticoagulants or enzymes for use as a catheter lock solution with the potential to extend the benefits of Neutrolin.

Disclosure: No position

Differences Between Mega-Sized Private Equity Firms and Mid-Market Firms

A reader recently asked me to contrast the human elements of working for a larger fund versus a smaller fund. The reader specifically asked about differences in learning curves, compensation, quality of life and hierarchy. It’s a great question because larger funds mean larger deals… and larger deals mean a completely different set of competitors, vendors, deal sources and processes.

Learning Curve

• We’re not dealing with rocket science here, so the learning curve isn’t particularly steep for private equity; once you’re through the door (i.e. you get hired), it becomes more about your resourcefulness.
• For larger funds, the focus is firmly on becoming a confident and polished dealmaker; this means developing great communication skills and fitting in with the culture at the big end of town (sounds easier than it is)
• For smaller funds, the focus is on becoming an amiable dealmaker and an articulate consultant; this means personally connecting with business owners (often ‘moms and dads’) and learning how to deliver pragmatic advice with confidence (which can be a challenge for some people).
• The other difference relates to structuring; larger deals are more likely to use complicated instruments, whereas smaller deals often stick to pref equity and senior debt; but, none of this is too difficult if you apply yourself.

Compensation

• Make no mistake, in a large firm you will earn multiples of what your smaller firm counterparts make, and the gap only increases from the day you start.
• Smaller firms will attempt to bridge the gap by offering carry (albeit, a small %), but don’t become blinkered by this; it takes a long time for your carry to fully vest (10 years+) and there’s a lot of fine print that will mean you get much less than your initial calculations (see this post on my real-world carry calculations, Part 1, Part 2).
• With that said, carry is the holy grail for private equiteers, but you need a relatively large fund to make it meaningful (or great performance, but don’t count on that); of course there are many other variables, but you know what they say about a bird in the hand (base salary)…

Quality of Life

• Private equity isn’t investment banking, we work pretty reasonable hours
• If anything, smaller firms will work you a little harder as they often have. fewer people working on more deals.
• Irrespective of firm size, before accepting a position at a PE firm, make sure it doesn’t have a PowerPoint culture; this can indicate they work 80+ hours a week pumping out decks, which as we know, is what most investment bankers do.
• You can do the sums to work out the management fee income to work out if they’re running on fumes or flush with cash; there’s a lot to be said for frugality, but it can be downright dispiriting having to pay for your own gas to drive out to investees (trust me, it happens, especially in single-owner firms).
• Above all, you need to be inspired by the people you work with and you need to feel that you’re a part of something big; great teams will make 90-hour weeks enjoyable, and uninspiring teams will make 35-hour weeks painful.

Hierarchy

• You operate much more autonomously at smaller firms and get experience across a wide range of domains; this is implicit in having fewer people and working on smaller deals.
• At larger firms, you’re more likely to have a set of duties that complement the overall team.
• If you pick the right mid-market firm, you can grow very quickly, simply by having complete autonomy to close deals, manage investees and effect exits; you’ll never enter a mega-sized fund as a junior with this level of autonomy.
• With that said, you’ll quickly feel under-compensated if you’re closing all the deals as a junior and being paid a janitor’s salary; you need a different mindset regarding compensation and duties going into larger vs. smaller firms.

Clearly my experience with mega vs. mid-market firms is limited to a sample that’s nowhere near the entire population of private equity firms. So I’d be interested to hear thoughts, disagreements, questions, etc.

Declining Sales Trend Puts Wal-Mart on Back Foot

Wal-Mart (WMT) is the world’s largest retailer, competing with companies like Target (TGT), Costco (COST), and Best Buy (BBY). Wal-Mart’s average revenue per square foot for its U.S. stores has been relatively stable since past two years in the range of $428-$434. We expect the revenue to increase slightly in the near term and stabilize thereafter.

With a wide assortment of product offerings to its target group of low-to-middle class U.S. consumers and by maintaining its pricing power over suppliers, we believe Wal-Mart will be able to sustain its leadership in the retail industry. But the company’s comparable store sales growth has been declining due to competition from discount stores and a change in consumer spending habits due to a weak economy – all of which are impacting sales.

While we expect revenue per square foot for Wal-Mart US stores will increase to $434 by the end of Trefis forecast period, Trefis members predict the revenue level will cross $485 implying 8% upside to WMT stock.

We currently have a Trefis price estimate of $65.42 for Wal-Mart’s stock, above the current market price of $52.09.

Slideshows created using Trefis Pro app

Pricing Power Over Suppliers

Wal-Mart is the largest retailer in the world with almost 50% higher sales than its seven closest competitors combined. The retail giant uses its enormous size and buying power to put pressure on its suppliers to sell goods at low prices. In return, the suppliers have an incentive to sell large volume of goods. The company then passes these savings to its customers. Wal-Mart has significant influence on its supplier companies since they depend on Wal-Mart for a large part of their sales. For example, in the past Wal-Mart has successfully influenced companies like General Mills to reduce costs by implementing redesigns of its products and packaging.

Competition, Declining Sales Could Weigh on Wal-Mart

Wal-Mart has been putting efforts into remodeling its stores and undertaking multichannel initiatives to draw customer traffic to its stores. The intent is to manage inventory better, consume less store space and improve customer service – which should have a positive impact on sales. Despite these ongoing efforts, Wal-Mart’s Q4 2010 results saw comparable store sales, a metric to measure a company’s sales growth, decline 1.8% – a continuous decline since past seven quarters. Struggling to make a mark in apparel sales and growing competition from discount stores and dollar stores that offer products at comparable or cheaper prices are few factors weighing on Wal-Mart’s revenues. [1]

Chart created using Trefis' app

Trefis Community Forecast

Trefis members forecast Wal-Mart’s revenue per square foot for U.S. stores will increase from $440 in 2010 to $487 by the end of the Trefis forecast period, compared to the baseline Trefis estimate of an increase from $428 to $434 during the same period. The member estimates imply an upside of 8% to the Trefis price estimate for Wal-Mart’s stock.

Our complete analysis for Wal-Mart’s stock is here.

Notes:

U.S. Sales At Wal-Mart Show Decline, NYtimes.com, Feb 22, 2011

The Mobile Revolution Over the Last 5 Years

The following video is part of our "Motley Fool Conversations" series, in which technology editor/analyst Andrew Tonner and technology analyst Evan Niu discuss topics across the investing world.

It has now been five years since Apple's introduction of the first iPhone in January 2007. Andrew and Evan talk about some of the changes that the smartphone and mobile industry has seen over the past five years and how Apple has revolutionized the industry.

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Apple is riding the revolution. However, the company is just one way to play this amazing opportunity for technology investors. The Motley Fool has a just released free report on mobile named "The Next Trillion Dollar Revolution" that details a "hidden" component play inside mobile phones that's also absolutely dominating the exploding tech market in China. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, but you can be among the first to access this just-released report by clicking here -- it's free.

Top Stocks For 6/4/2012-1

Breitburn Energy Partners L.P. (Nasdaq:BBEP) announced financial and operating results for its first quarter of 2011. Key Highlights: The Partnership delivered another quarter of strong financial and operating results, with EBITDA, production, and lease operating expenses trending in-line with or exceeding guidance. In February 2011, the Partnership completed a public offering of 4,945,000 common units at $21.25 per unit representing additional limited partner interests. The Partnership received net proceeds of approximately $100 million, which were used to reduce borrowings under its bank credit facility and increase the Partnership’s flexibility in funding future acquisitions. As of April 30, 2011, the Partnership had $121 million outstanding under the credit facility. On April 28, 2011, the Partnership announced an increased cash distribution for the first quarter of 2011 at the rate of $0.4175 per unit, or $1.67 on an annualized basis, to be paid on May 13, 2011 to the record holders of common units at the close of business on May 10, 2011. This represents an increase of 11.3% over the cash distribution for the first quarter of 2010.

BreitBurn Energy Partners L.P. engages in the acquisition, exploitation, and development of oil and gas properties in the United States. Its assets primarily consist of producing and non-producing crude oil and natural gas reserves located primarily in the Antrim Shale in Michigan, the Los Angeles Basin in California, the Wind River and Big Horn Basins in central Wyoming, the Sunniland Trend in Florida, and the New Albany Shale in Indiana and Kentucky.

Power3 Medical Products, Inc. (PWRM)

Power3 Medical Products, Inc. is a leading bio-technology company focused on the development of innovative diagnostic tests in the fields of cancer and neurodegenerative diseases such as Alzheimer’s disease, Parkinson’s disease and amyotrophic lateral sclerosis (commonly known as ALS or Lou Gehrig’s disease). Power3 Medical Products, Inc. applies proprietary methodologies to discover and identify protein biomarkers associated with diseases. Through these processes, Power3 Medical Products, Inc. has developed a portfolio of products including BC-SeraPro, a proteomic blood serum test for the early detection of breast cancer for which it has completed Phase I clinical trials, and NuroPro, a proteomic blood serum test for the detection of neurodegenerative diseases, including Alzheimer’s, Parkinson’s and ALS diseases, for which it is currently engaged in Phase II clinical trials. These tests are designed to analyze an individual’s proteins to detect the presence of disease, a patient’s disease progression, a patient’s response to a particular drug, and the mechanisms of disease present in the patient for optimal targeted therapy.

Breast cancer is the most common type found in women that has been very fast in gulping lives. This starts with an abnormality in a mammogram, a lump, or a slight change in the breast tissues. Family history of breast cancer or any sort of cancer is said to be a convincing reason to have a risk of cancer. However, the primary reason for a breast cancer remains a hormonal or genetic change or issue.

The usual pattern of growing cells is that the cells break down and form new cells. The old or damaged cells had to die and get out of the body to make place for newer ones. But sometimes an abnormality happens and these damaged cells do not get removed or new cells get produced even when not required. These extra cells in the body get no place to settle down and so they create a lump or a tumor in a particular part of body.

Breast cancer cells can move to the connected parts after breaking away from its tumor and moving out through blood vessels or lymph. They can form new tumors this way and damage a lot more tissues.

BC-SeraPro� is a proteomic test for the diagnosis of breast cancer. This test is designed to measure the quantitative expression level of 22 protein biomarkers in the serum that differentiate between breast cancer patients and control subjects. The level of the biomarkers from the patient’s serum sample is compared to the Power3 Medical Products’ patient database. Statistical analysis by linear discriminates function will analyze the biomarker levels of the patient sample and assign a probability score for the diagnosis of the patient sample. Probability score is ranged from 0.0 to 1.0. Results of the BC-SeraPro� test should not be considered a standalone diagnosis nor a guarantee and is intended to be used in conjunction with mammography and other accepted modalities.

For more information, please visit their website: http://www.power3medical.com

Staples, Inc. (Nasdaq:SPLS) will hold its quarterly conference call to discuss first quarter 2011 results on Wednesday, May 18, 2011 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time). This call is being webcast by Thomson Reuters and can be accessed at Staples’ Web site at http://investor.staples.com. The webcast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.earnings.com, Thomson Reuters’ individual investor portal. Institutional investors can access the call via StreetEvents, Thomson Reuters’ password-protected event management site, at www.streetevents.com.

Staples, Inc., together with its subsidiaries, operates as an office products company. The company sells various office supplies and services, business machines and related products, computers and related products, and office furniture.

EMC Insurance Group Inc. (Nasdaq:EMCI) reported an operating loss of $0.01 per share for the first quarter ended March 31, 2011, compared to operating income of $0.73 per share for the first quarter of 20101. Net income, including realized investment gains and losses, totaled $5,221,000 ($0.40 per share) for the first quarter of 2011 compared to $9,878,000 ($0.75 per share) for the first quarter of 2010. “First quarter 2011 is a stark reminder of our business purpose to insure our policyholders against loss. Our hearts go out to all those affected by the catastrophic events of the first quarter,” stated Bruce G. Kelley, President and Chief Executive Officer. “Both our property and casualty insurance and our reinsurance segments tallied large losses from national and world-wide events of the quarter.”

EMC Insurance Group Inc., through its subsidiaries, provides property and casualty insurance, and reinsurance products in the United States. The company operates through two segments, Property and Casualty Insurance, and Reinsurance.

How to Profit From the Coming Data Boom

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

Dave and John talk about a recent article that refers to a coming "tech-led" boom. Dave has been following this big trend for some time now, so he shares his thoughts about it. He then shares some ideas he's considering in addition to stocks he has already purchased in this space.

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Looking for the technology trend set to define the next decade? We're creating 60% more data every year. That's an astounding growth rate that presents opportunity for investors who can find the leaders not only storing the data but finding new, innovative ways of analyzing it. To take advantage of this gigantic technology opportunity, The Motley Fool has compiled a new report called "The Only Stock You Need to Profit From the NEW Technology Revolution." The report highlights a company that has gained more than 200% since it was first recommended by Fool analysts but still has plenty of room left to run. Thousands have requested access to this special free report, and now you can get it today at no cost. To get instant access to the name of this company transforming the IT industry,�click here -- it's free.

Has Petrobras Become the Perfect Stock?

Every investor would love to stumble upon the perfect stock. But will you ever really find a stock that provides everything you could possibly want?

One thing's for sure: You'll never discover truly great investments unless you actively look for them. Let's discuss the ideal qualities of a perfect stock, then decide if Petroleo Brasileiro (NYSE: PBR  ) fits the bill.

The quest for perfection
Stocks that look great based on one factor may prove horrible elsewhere, making due diligence a crucial part of your investing research. The best stocks excel in many different areas, including these important factors:

• Growth. Expanding businesses show healthy revenue growth. While past growth is no guarantee that revenue will keep rising, it's certainly a better sign than a stagnant top line.
• Margins. Higher sales mean nothing if a company can't produce profits from them. Strong margins ensure that company can turn revenue into profit.
• Balance sheet. At debt-laden companies, banks and bondholders compete with shareholders for management's attention. Companies with strong balance sheets don't have to worry about the distraction of debt.
• Money-making opportunities. Return on equity helps measure how well a company is finding opportunities to turn its resources into profitable business endeavors.
• Valuation. You can't afford to pay too much for even the best companies. By using normalized figures, you can see how a stock's simple earnings multiple fits into a longer-term context.
• Dividends. For tangible proof of profits, a check to shareholders every three months can't be beat. Companies with solid dividends and strong commitments to increasing payouts treat shareholders well.

With those factors in mind, let's take a closer look at Petrobras.

Factor	What We Want to See	Actual	Pass or Fail?
Growth	5-Year Annual Revenue Growth > 15%	11.5%	Fail
�	1-Year Revenue Growth > 12%	36.1%	Pass
Margins	Gross Margin > 35%	38.2%	Pass
�	Net Margin > 15%	16.1%	Pass
Balance Sheet	Debt to Equity < 50%	44.3%	Pass
�	Current Ratio > 1.3	1.78	Pass
Opportunities	Return on Equity > 15%	12.2%	Fail
Valuation	Normalized P/E < 20	10.85	Pass
Dividends	Current Yield > 2%	3.2%	Pass
�	5-Year Dividend Growth > 10%	6.3%	Fail
�	�	�	�
�	Total Score	�	7 out of 10

Source: S&P Capital IQ. Total score = number of passes.

Since we looked at Petrobras last year, the Brazilian oil giant has maintained its seven-point score. Dividend growth has slowed, but sales picked up nicely in the past year as the company starts to cash in on some lucrative finds in recent years.

The Santos Basin off the coast of Brazil has seen some big discoveries in recent years. About a third of newly discovered oil finds during the past five years have come from Brazil's offshore resources. Although ExxonMobil (NYSE: XOM  ) and Chevron (NYSE: CVX  ) have made forays into the region, both have had challenges. Exxon hit dry wells early last year, while Chevron had a small oil spill that ballooned into a multibillion-dollar issue for the company. Moreover, Petrobras enjoys favored legal status that keeps it as lead operator in major deepwater exploration and production.

In order to make those fields produce, Petrobras is ramping up its internal infrastructure. National Oilwell Varco (NYSE: NOV  ) is working on equipment for seven drillships that Petrobras will use to explore its deepwater holdings. Moreover, last year, DryShips (Nasdaq: DRYS  ) signed a contract for ultra-deepwater ships that Petrobras will use over the next three years, and it's likely that Petrobras will maintain a strong relationship with DryShips' now-spun-off Ocean Rig subsidiary.

As long as high oil prices persist, then Petrobras should continue to see strength in its stock. The main concern is a potential slowdown in the Brazilian economy, but with shares at relatively low multiples, some of that risk is already priced into the stock. With just a slight boost in a few key metrics, Petrobras could reach perfection in the near future.

Keep searching
No stock is a sure thing, but some stocks are a lot closer to perfect than others. By looking for the perfect stock, you'll go a long way toward improving your investing prowess and learning how to separate out the best investments from the rest.

If you like Petrobras, we've got another energy company that could knock your socks off. Read about it right here in The Motley Fool's special free report on the energy industry and its best prospects -- it's free but only available for a limited time.

Click here to add Petrobras to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Intel: An income & value buy

Intel (INTC) is the epitome of tech dominance, with a better than 80 percent share of the semiconductor market. But it had become an uphill struggle for Intel to translate its market dominance into brisk earnings growth.

In the past few months, however, Intel�s earnings outlook has sharply improved. Why? The explanation lies in a momentous turnaround in how transistors are priced.

Until recently, Intel was battling a decades-long trend: the steady decline in chip prices, which ironically had been brought about mainly by Intel�s own amazing technological prowess.

While people around the world were eagerly buying computers, phones, tablets, and other devices built around Intel�s ubiquitous chips, Intel kept finding ways to make its chips ever smaller and more powerful, thereby continually pushing average selling prices down.

This encouraged the explosive spread of new technologies and of the Internet. But it also meant that Intel�s massive investments in research and development weren�t rewarded by fast-paced earnings growth.

Now, though, microprocessor prices have finally started to rise, and with them Intel�s fortunes. As reported by technology research firm IDC, average selling prices for PC microprocessors rose by 9 percent in 2011, their second year in a row of significant growth.
Manufacturers of computers, servers, and mobile devices all are paying more for the innards of their products, and those higher prices will funnel right to Intel�s bottom line (probably passing on to consumers as well).

With its dominant market share, Intel comes close to being a monopoly. True, Advanced Micro Devices, with a market cap of $5.5 billion, supplies the 20 percent or so (depending on the particular chip segment) of the market that Intel chooses to leave on the table.

But with such deep pockets (roughly $15 billion in cash and short-term investments as of yearend 2011), Intel could easily price AMD out of the market.

We expect, however, that Intel will be content to continue to throw AMD a bone so as to avoid arousing the ire of consumers and government antitrust lawyers.

Intel�s highest market share�better than 90 percent�is in server processors, which happens to be the fastest-growing chip segment. Server processors account for just 20 percent of Intel's sales but are growing three times as fast as desktop processors.

The outlook over the next few years is exceptionally positive for unit sales of server processors as demand for cloud servers, networking, and storage continues to rise dramatically.

The servers are what allow users to store data in the �cloud� rather than on their individual devices; it�s estimated that for every 120 tablets or 600 smartphones, an additional server is required.

Despite Intel�s market leadership, outright dominance in the fastest-growing areas, and the favorable newfound pricing dynamics for its products, the shares are still surprisingly cheap.

Even after a recent run-up they trade at just 11 times current-year earnings estimates and at 10 times anticipated 2013 earnings.

And that�s based on consensus estimates of 10 percent earnings growth. We think Intel could tack on a few extra percentage points to growth, bringing its PEG to below 1.

The yield of 3 percent adds further to the shares� appeal, making this an investment for growth and income investors alike.



Related articles:

• Cisco: A no-brainer buy in tech
• Avago calls on iPhones for growth
• Linkedin: Professional profits

How Fast Is the Cash at Greatbatch?

It takes money to make money. Most investors know that, but with business media so focused on the "how much," very few investors bother to ask, "How fast?"

When judging a company's prospects, how quickly it turns cash outflows into cash inflows can be just as important as how much profit it's booking in the accounting fantasy world we call "earnings." This is one of the first metrics I check when I'm hunting for the market's best stocks. Today, we'll see how it applies to Greatbatch (NYSE: GB  ) .

Let's break this down
In this series, we measure how swiftly a company turns cash into goods or services and back into cash. We'll use a quick, relatively foolproof tool known as the cash conversion cycle, or CCC for short.

Why does the CCC matter? The less time it takes a firm to convert outgoing cash into incoming cash, the more powerful and flexible its profit engine is. The less money tied up in inventory and accounts receivable, the more available to grow the company, pay investors, or both.

To calculate the cash conversion cycle, add days inventory outstanding to days sales outstanding, then subtract days payable outstanding. Like golf, the lower your score here, the better. The CCC figure for Greatbatch for the trailing 12 months is 122.9.

For younger, fast-growth companies, the CCC can give you valuable insight into the sustainability of that growth. A company that's taking longer to make cash may need to tap financing to keep its momentum. For older, mature companies, the CCC can tell you how well the company is managed. Firms that begin to lose control of the CCC may be losing their clout with their suppliers (who might be demanding stricter payment terms) and customers (who might be demanding more generous terms). This can sometimes be an important signal of future distress -- one most investors are likely to miss.

In this series, I'm most interested in comparing a company's CCC to its prior performance. Here's where I believe all investors need to become trend-watchers. Sure, there may be legitimate reasons for an increase in the CCC, but all things being equal, I want to see this number stay steady or move downward over time.

Source: S&P Capital IQ. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Because of the seasonality in some businesses, the CCC for the TTM period may not be strictly comparable to the fiscal-year periods shown in the chart. Even the steadiest-looking businesses on an annual basis will experience some quarterly fluctuations in the CCC. To get an understanding of the usual ebb and flow at Greatbatch, consult the quarterly-period chart below.

Source: S&P Capital IQ. Dollar amounts in millions. FQ = fiscal quarter.

On a 12-month basis, the trend at Greatbatch looks less than great. At 122.9 days, it is 2.4 days worse than the five-year average of 120.5 days. The biggest contributor to that degradation was DSO, which worsened 6.8 days when compared to the five-year average.

Considering the numbers on a quarterly basis, the CCC trend at Greatbatch looks OK. At 129.7 days, it is little changed from the average of the past eight quarters. Investors will want to keep an eye on this for the future to make sure it doesn't stray too far in the wrong direction. With both 12-month and quarterly CCC running close to historical averages, Greatbatch gets a passing grade in this cash-conversion checkup.

Though the CCC can take a little work to calculate, it's definitely worth watching every quarter. You'll be better informed about potential problems, and you'll improve your odds of finding the underappreciated home run stocks that provide the market's best returns.

• Add Greatbatch to My Watchlist.

1 Reason to Expect Big Things From TETRA Technologies

Here at The Motley Fool, I've long cautioned investors to keep a close eye on inventory levels. It's a part of my standard diligence when searching for the market's best stocks. I think a quarterly checkup can help you spot potential problems. For many companies, products that sit on the shelves too long can become big trouble. Stale inventory may be sold for lower prices, hurting profitability. In extreme cases, it may be written off completely and sent to the shredder.

Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at TETRA Technologies (NYSE: TTI  ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is TETRA Technologies doing by this quick checkup? At first glance, not so great. Trailing-12-month revenue decreased 9.6%, and inventory increased 6.0%. Comparing the latest quarter to the prior-year quarter, the story looks potentially problematic. Revenue shrank 18.8%, and inventory expanded 6.0%. Over the sequential quarterly period, the trend looks OK but not great. Revenue dropped 2.9%, and inventory grew 4.2%.

Advanced inventory
I don't stop my checkup there, because the type of inventory can matter even more than the overall quantity. There's even one type of inventory bulge we sometimes like to see. You can check for it by examining the quarterly filings to evaluate the different kinds of inventory: raw materials, work-in-progress inventory, and finished goods. (Some companies report the first two types as a single category.)

A company ramping up for increased demand may increase raw materials and work-in-progress inventory at a faster rate when it expects robust future growth. As such, we might consider oversized growth in those categories to offer a clue to a brighter future, and a clue that most other investors will miss. We call it "positive inventory divergence."

On the other hand, if we see a big increase in finished goods, that often means product isn't moving as well as expected, and it's time to hunker down with the filings and conference calls to find out why.

What's going on with the inventory at TETRA Technologies? I chart the details below for both quarterly and 12-month periods.

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FY = fiscal year. TTM = trailing 12 months.

Source: S&P Capital IQ. Data is current as of latest fully reported quarter. Dollar amounts in millions. FQ = fiscal quarter.

Let's dig into the inventory specifics. On a trailing-12-month basis, raw materials inventory was the fastest-growing segment, up 15.7%. On a sequential-quarter basis, work-in-progress inventory was the fastest-growing segment, up 8.5%. Although TETRA Technologies shows inventory growth that outpaces revenue growth, the company may also display positive inventory divergence, suggesting that management sees increased demand on the horizon.

Foolish bottom line
When you're doing your research, remember that aggregate numbers such as inventory balances often mask situations that are more complex than they appear. Even the detailed numbers don't give us the final word. When in doubt, listen to the conference call, or contact investor relations. What at first looks like a problem may actually signal a stock that will provide the market's best returns. And what might look hunky-dory at first glance could actually be warning you to cut your losses before the rest of the Street wises up.

I run these quick inventory checks every quarter. To stay on top of inventory and other tell-tale metrics at your favorite companies, add them to your free watchlist, and we'll deliver our latest coverage right to your inbox.

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Money Morning Mailbag: With Many Ways To Hold It, Investors Need To Get Their Hands on Silver

A couple weeks ago, Money Morning Guest Writer Jack Barnes examined the last major commodity to enjoy a true price breakout: silver.

Barnes detailed why silver is poised for a breakout, based on its current price surge underway in India, the price run up of gold - a leading indicator of silver prices - and the fact that the white metal has yet to set a new nominal record price in U.S. dollars.

Barnes outlined the actions investors should take to involve silver in their investment plans, offering three strategies: physical acquisition and accumulation, exchange-traded funds (ETFs) and stocks, and options on futures.

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What to Look For in the Markets Today

Yesterday, all three major indices closed the day in the green. The Dow Jones Industrial Average (INDEX: ^DJI  ) was up 0.51%, the S&P (INDEX: ^GSPC  ) was up 0.83%, and the Nasdaq ended the day up 0.83%. Both the Dow and the S&P extended their win streak to three days, while the Nasdaq effectively erased its 0.99% loss from yesterday.

Some of yesterday's biggest movers include:�

Company	Move
Bank of America (NYSE: BAC  )	4.6%
General Electric (NYSE: GE  )	3%
JPMorgan Chase (NYSE: JPM  )	3.5%
Wal-Mart	(0.3%)
McDonald's	(0.6%)�
Coca-Cola	(0.6%)�

Looking toward today, the major economic events and reports that investors need to keep their eye on include:

• Durable-goods orders.
• Personal income and outlays.
• New-home sales.

Durable goods
The Department of Commerce is releasing its durable-goods order figures at 8:30 a.m. ET today. Orders are considered a leading indicator of manufacturing activity. Lately, manufacturing has been a mixed bag. The Wall Street Journal recently reported that the U.S. was among a small number of countries to realize manufacturing gains in November.

Caterpillar (NYSE: CAT  ) , meanwhile, recently saw slow growth in developed parts of the world but reaffirmed its 2011 forecast. Its 2012 predictions are upbeat, with the company expecting sales to grow 10%-20% through next year. The durable-goods order released today should help presage whether manufacturing's 2012 expectations are reasonable.

Personal income
The Bureau of Economic Analysis is releasing its personal-income figures this morning, also at 8:30 ET. These figures are largely composed of wages and salaries, and considering that new jobless claims for unemployment benefits dropped last week to their lowest level since 2008, people may be reading this as a boon.

One potentially affected company that I'll be watching today is Paychex (Nasdaq: PAYX  ) , a company that provides payroll, benefits, and human resource outsourcing solutions for more than 550,000 clients. Credit Agricole downgraded Paychex to a "sell" yesterday. The company has underperformed the market for the year but pays out a generous 4.3% dividend yield.

New some sales
The Census Bureau's new home-sales report indicates the level of individual owned single-family homes sold and currently for sale from November. An earlier November report from RE/MAX indicates that sales were 8.1% higher than a year before. It was the fifth consecutive month to show a gain from the prior year. However, the average closing price was just over 4% lower compared with November 2010.

These numbers could indicate that supply has finally met demand. And with interest and mortgage rates at record lows, it's no surprise. Affected companies to watch today include homebuilders such as KB Homes and companies with mortgage exposure, including yesterday's big mover, Bank of America.

Foolish suggestions
While we don't have crystal balls around Fool HQ, there are some stocks we feel particularly bullish on going into 2012. We strongly believe this stock will put up high growth and reward shareholders through next year. We've even gone as far as to dub it "The Costco of Latin America," and we're pegging it to be The Motley Fool's Top Stock for 2012. Access the special free report outlining this company. It's free today, but it won't be forever. Enjoy, and Fool on!

Canadian Solar Discloses SEC Probe; Delays Earnings; Shrs Fall

Canadian Solar (CSIQ) shares are down sharply in late trading after the company said it has received an SEC subpoena relating to certain 2009 sales transactions. The company said its audit committee as begun an internal investigation as well, and it postponed the release of Q1 results, which had been scheduled for tomorrow.

The company also said that it shipped an estimate 186.4 MW of modules in Q1.

Canadian Solar said that 2009 Q4 and full year results may be revised “due to the company’s intention to recognize sales only after receiving full cash payments from certain customers and due to certain subsequent return of goods after the quarter end.”

CEO Shawn Qu said demand was very strong in Q1, but added that the unexpected deterioration of the Euro and a higher ratio of external purchased cells put pressure on margins.

For Q2, the company sees shipments of 170 MW to 180 MW, with gross margin of 13%-14%. For the second half, the company expects shipments to exceed those in the first half. For the full year, CSIQ now sees shipments of 700-800 MW, up from previous guidance of 600-700 MW.

In late trading, CSIQ is down $2.03, or 17%, to $9.83.

The Israel Discount - An Opportunity To Pick Up Teva, Prolor Cheap

We have found that there is a measurable and consistent "Israel Discount" in the biotech and pharmaceutical industry. The market seems to punish Israel-based companies by marking them at lower valuations as compared to US-based company valuations. Diversifying into Israeli companies in this industry is an excellent way to add alpha to the pharmaceutical segment of an equity portfolio in anticipation of a market correction towards equilibrium.

Teva Pharmaceuticals (TEVA) is a prime example of this discrepancy. Teva has far outpaced its competitors as the biggest generic drug maker in the world with a market capital of $42 billion and 2011 sales of $18.3 billion. It is larger than the next four competitors combined on both market capital and revenue. Teva's market leading status provides a wide array of advantages in the pharmaceutical industry as their economies of scale allow them to report margins that are around 1,000bps higher than their competitors (on a gross, operating, and net basis).

Size does not come at the expense of growth, as one would normally expect. Teva has been in business since 1944 and is one of the largest companies trading on the NYSE, yet they are still able to achieve 20+% top-line compounded annual growth rates. Despite all of these clear advantages, the stock is trading at less than half of Watson Pharmaceuticals (WPI) on a P/E basis. Over the past two years, based on our calculations, Teva's average P/E has been 16% lower than Watson's and their EV/EBITDA multiple has traded at a similar 14% discount.

Looking at the other end of the pharmaceutical spectrum, we shine the spotlight on Israeli Prolor Biotech (PBTH) as compared to US-based Idenix Pharmaceuticals (IDIX). While working in different fields, these two development stage companies are both in phase two of the FDA approval process with a pot of gold at the end of the rainbow in the form of revenues from their respective experimental drugs. To-date, there are no meaningful earnings from the product so standard valuation metrics such as price-to-earnings, price-to-book, or EV/EBITDA are not meaningful. We therefore turn to Wall Street models based on discounted future cash flows for guidance on the "true value" of the stock.

Prolor Biotech is an Israel-based company that has products that are going through the FDA approval process that aim to provide a more user-friendly version of existing Human Growth Hormone treatment. The main axe on this name is Summer Street Research Partners. Their latest DCF model points to a price target of $8 per share. The current stock price reflects a 32% discount from the true equity value.

Idenix Pharmaceuticals Inc. is a biopharmaceutical company that discovers and develops drugs that focus on the treatment of infections caused by hepatitis B virus, hepatitis C virus, and human immunodeficiency virus (HIV). This company enjoys a much wider coverage base of 13 analysts with an average analyst price valuation of $10. The current price reflects 24% discount from the true equity value. The "Israel Discount" is alive and well in the development stage as well.

We see that whether it is the more mature and diversified pharmaceutical giants like Teva and Watson or the development stage companies like Prolor and Idenix, the "Israel Discount" is apparent and significant. It is difficult to say how long this trend will continue, but the patient investor who holds on for the medium-term should be rewarded as the valuations metrics correct. This "Israel Discount" seems to be an issue that is local to the pharmaceutical and biotech industry. A comparison of the main country indices of these two countries (see chart) shows little discrepancy in valuation metrics. This tends to indicate that the trend in the pharmaceutical industry has a limited lifespan.

P/E Ratios of the TA 100 and the S&P 500

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Student loan payback gets White House attention

WASHINGTON (CNNMoney) -- The deadline for Congress to extend the low 3.4% interest rate on student loans is fast approaching. But the Obama administration, eager to make college debt a re-election issue, is looking for a way to lessen the burden on graduates.

Last week, the White House rolled out a plan to make it easier for graduates to enroll in a special program that caps loan repayment, based on income.

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#college101_starter {padding-bottom:15px;}#menu1, #menu2, #menu3 {height:auto;margin-left:10px;display:none;}.show_hide1, .show_hide2, .show_hide3 {margin-left:10px;margin-top:5px;font-weight:bold;color: #004276;}.show_hide1:hover, .show_hide2:hover, .show_hide3:hover {cursor:pointer;text-decoration:underline;}#ie_column .cnnGenSidebarWidget#college101_starter .cnnWidgetBody li {width:100%;} College 101 • College Costs

• How much does it actually cost?
• Terms you need to know
• Find out what you'll really pay
• How to go for free
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• Finding mid-priced colleges

• Financial Aid

• Guide to financial aid
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Under the present terms of the 4-year-old Income-Based Repayment Plan, graduates who enroll get charged 15% of their monthly discretionary income to pay off loans. All debt is forgiven after 25 years.

Currently, the program has 700,000 participants, according to Secretary of Education Arne Duncan. But the administration believes millions more could benefit from the capped loan payments.

President Obama directed the education agency to create a new way to allow students to enroll into the income-based loan program online, with a single click. Graduates will be able to upload financial data directly from the IRS -- instead of filling out an application with information from a personal income tax filing.

Currently, students can only enroll in the program by first contacting student loan servicers, and the process can take up to six weeks, education experts say.

This new move, to go into effect later this fall, would allow students to bypass servicers to enroll on their own, via the Web.

"We have a long way to go," Duncan said. "Just by making the process much less complicated and more simple, we'll hopefully see many more of our folks take advantage of this going forward."

For those enrolled in the program, the monthly payments are based on income higher than 150% of the poverty line. For a graduate living alone, the payments would be 15% of any income above $16,335, based on the 2011 poverty line.

Unemployed graduates with no income owe no monthly payments on their student loans, education experts say.

Education officials said it's unclear how many people could benefit. It's not a great fit for borrowers with decent-paying jobs, as the program lengthens the life of the loan from 10 to 25 years, tacking on more years of interest.

Help free your grad from debt

But for some of the 5.4 million student loan borrowers that the New York Federal Reserve says are late on at least one payment, the program could be a lifesaver.

"It's very good news that the enrollment process will be simplified," said Lauren Asher, president of the Institute for College Access & Success. "But much more needs to be done to make sure people are aware that this program can help them."

Ignore the debt hype. College is a great investment

Student loans are unique among all loans in that they cannot be discharged in federal bankruptcy court.

President Obama has made the financial strain on students and recent graduates a part of his re-election campaign, often calling on Congress to stop student loans from doubling to 6.8% come July 1.

Average student loan debt for the graduating class of 2010 at four-year nonprofit colleges was $25,250, including all private and federal loans, according to the Institute for College Access & Success.

Some 35 million graduates have student loan debt, which at $904 billion nationwide, stands bigger than outstanding credit card debt.

The terms of the income-based repayment program are about to get more generous for loans that will be originated this school year. Thanks to past laws that the Obama administration fast-tracked, monthly payments will be capped at 10% of discretionary income and loan forgiveness kicks in after 20 years on loans taken out this year for future graduates.

The White House announcement came the same day Senate Majority Leader Harry Reid offered a new olive branch to Republicans. He suggested a bipartisan way to pay the $6 billion cost of extending 3.4% interest rates for federal student loans to undergraduates another year. Congressional negotiations are ongoing, aides say.

Correction: An earlier version of this story gave the incorrect current student loan rate. The correct rate is 3.4%, which would become 6.8% if Congress does not extend the lower rate. 

15 Undervalued Stocks Trading Near 52-Week Lows

If you’re looking for stocks with rebound potential, you may be interested in this list of undervalued stocks. Below we present 15 stocks that are trading within 10% of their 52-week lows; however, they are also undervalued by several price multiples relative to their industry averages, including TTM P/E, PEG, and TTM P/CF.

[Click all to enlarge]

Are these stocks ready to bounce back? Use this list as a starting-off point for your own analysis. List sorted by market cap.

1. Cisco Systems, Inc. (CSCO): Networking & Communication Devices Industry. Market cap of $94.53B. The stock is currently trading 3.51% above its 52-week low. TTM P/E ratio at 12.93 vs. industry average of 26.58. PEG ratio at 1.25 vs. industry average of 1.45. TTM P/CF ratio at 9.61 vs. industry average of 21.95. The stock has lost 37.75% over the last year.

2. Hewlett-Packard Company (HPQ): Diversified Computer Systems Industry. Market cap of $87.70B. The stock is currently trading 9.23% above its 52-week low. TTM P/E ratio at 10.43 vs. industry average of 18.85. PEG ratio at 1.08 vs. industry average of 1.17. TTM P/CF ratio at 6.59 vs. industry average of 13.53. The stock has lost 24.74% over the last year.

3. Mitsubishi UFJ Financial Group, Inc. (MTU): Money Center Banks Industry. Market cap of $65.38B. The stock is currently trading 5.96% above its 52-week low. TTM P/E ratio at 7.53 vs. industry average of 12.94. PEG ratio at 0.64 vs. industry average of 1.53. TTM P/CF ratio at 5.42 vs. industry average of 11.9. The stock has lost 14.76% over the last year.

4. Teva Pharmaceutical Industries Limited (TEVA): Drug Manufacturer. Market cap of $42.96B. The stock is currently trading 1.83% above its 52-week low. TTM P/E ratio at 12.26 vs. industry average of 25.72. PEG ratio at 1.24 vs. industry average of 1.36. TTM P/CF ratio at 9.36 vs. industry average of 15.15. The stock is currently stuck in a downtrend, trading 8.07% below its SMA20, 8.37% below its SMA50, and 11.09% below its SMA200. It's been a rough couple of days for the stock, losing 8.6% over the last week.

5. Target Corp. (TGT): Discount, Variety Stores Industry. Market cap of $34.31B. The stock is currently trading 4.10% above its 52-week low. TTM P/E ratio at 12.44 vs. industry average of 20.45. PEG ratio at 1.04 vs. industry average of 1.72. TTM P/CF ratio at 7.16 vs. industry average of 9.08. The stock has lost 13.25% over the last year.

6. Best Buy Co. Inc. (BBY): Electronics Stores Industry. Market cap of $11.90B. The stock is currently trading 8.04% above its 52-week low. TTM P/E ratio at 9.65 vs. industry average of 18. PEG ratio at 0.94 vs. industry average of 1.22. TTM P/CF ratio at 6.04 vs. industry average of 12.03. The stock has lost 36.41% over the last year.

7. Logitech International SA (LOGI): Computer Peripherals Industry. Market cap of $2.63B. The stock is currently trading 4.18% above its 52-week low. TTM P/E ratio at 16.36 vs. industry average of 18.85. PEG ratio at 1.16 vs. industry average of 1.17. TTM P/CF ratio at 10.61 vs. industry average of 13.53. The stock is a short squeeze candidate, with a short float at 18.73% (equivalent to 18.34 days of average volume). The stock has performed poorly over the last month, losing 25.72%.

8. Itron, Inc. (ITRI): Scientific & Technical Instruments Industry. Market cap of $2.20B. The stock is currently trading 6.97% above its 52-week low. TTM P/E ratio at 21.34 vs. industry average of 28.43. PEG ratio at 1.56 vs. industry average of 2.04. TTM P/CF ratio at 9.35 vs. industry average of 10.58. The stock has lost 29.02% over the last year.

9. WMS Industries Inc. (WMS): Recreational Goods Industry. Market cap of $1.87B. The stock is currently trading 9.36% above its 52-week low. TTM P/E ratio at 17.19 vs. industry average of 29.75. PEG ratio at 1.36 vs. industry average of 1.76. TTM P/CF ratio at 10.66 vs. industry average of 15.94. The stock has lost 33.07% over the last year.

10. Strayer Education Inc. (STRA): Education & Training Services Industry. Market cap of $1.51B. The stock is currently trading 6.51% above its 52-week low. TTM P/E ratio at 12.37 vs. industry average of 22.61. PEG ratio at 1.34 vs. industry average of 1.66. TTM P/CF ratio at 11.05 vs. industry average of 16.93. The stock is a short squeeze candidate, with a short float at 21.14% (equivalent to 10.77 days of average volume).

11. Patni Computer Systems Limited (PTI): Business Software & Services Industry. Market cap of $1.22B. The stock is currently trading 5.19% above its 52-week low. TTM P/E ratio at 10.19 vs. industry average of 19.64. PEG ratio at 1.33 vs. industry average of 1.43. TTM P/CF ratio at 8.14 vs. industry average of 16.03. Short float at 5.92% (equivalent to 13.95 days of average volume), indicating the stock is a short squeeze candidate.

12. Capella Education Co. (CPLA): Education & Training Services Industry. Market cap of $796.64M. The stock is currently trading 6.34% above its 52-week low. TTM P/E ratio at 13.62 vs. industry average of 22.61. PEG ratio at 0.91 vs. industry average of 1.66. TTM P/CF ratio at 10.31 vs. industry average of 16.93. The stock is a short squeeze candidate, with a short float at 18.19% (equivalent to 10.35 days of average volume). The stock has lost 47.28% over the last year.

13. Grand Canyon Education, Inc. (LOPE): Education & Training Services Industry. Market cap of $625.78M. The stock is currently trading 7.84% above its 52-week low. TTM P/E ratio at 14.28 vs. industry average of 22.61. PEG ratio at 0.8 vs. industry average of 1.66. TTM P/CF ratio at 11.11 vs. industry average of 16.93. The stock is a short squeeze candidate, with a short float at 7.23% (equivalent to 5.55 days of average volume). The stock has lost 46.19% over the last year.

14. Flagstone Reinsurance Holdings SA (FSR): Property & Casualty Insurance Industry. Market cap of $571.29M. The stock is currently trading 1.74% above its 52-week low. TTM P/E ratio at 6.69 vs. industry average of 10.85. PEG ratio at 0.89 vs. industry average of 0.93. TTM P/CF ratio at 5.97 vs. industry average of 7.44. The stock has lost 27.18% over the last year.

15. hhgregg, Inc. (HGG): Electronics Stores Industry. Market cap of $477.31M. The stock is currently trading 1.09% above its 52-week low. TTM P/E ratio at 11.22 vs. industry average of 18. PEG ratio at 0.61 vs. industry average of 1.22. TTM P/CF ratio at 7.02 vs. industry average of 12.03. The stock is a short squeeze candidate, with a short float at 29.07% (equivalent to 12.72 days of average volume). It's been a rough couple of days for the stock, losing 7.61% over the last week.

Price multiples sourced from Fidelity, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.