Thursday, March 31, 2011

Stocks Going Ex Dividend the First Week of April


Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the market capitalization, the ex-dividend date and the yield.

Kite Realty Group Trust (KRG) market cap: $337.2M ex div date: 4/4/2011 yield: 4.6%

Raytheon Company (RTN) market cap: $18.3B ex div date: 4/4/2011 yield: 3.4%

Banco de Chile ADR (BCH) market cap: $7.0T ex div date: 4/5/2011 yield: 4.5%

Campbell Soup Company (CPB) market cap: $10.6B ex div date: 4/7/2011 yield: 3.5%

General Mills, Inc. (GIS) market cap: $23.3B ex div date: 4/7/2011 yield: 3.1%

Progress Energy, Inc. (PGN) market cap: $13.6B ex div date: 4/7/2011 yield: 5.4%

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Burp-Free Food for Cows to Reduce Methane

Scientists in the United Kingdom have been researching ways of changing the diet of cows to reduce methane in order to lower greenhouse gas emissions.

China's Ghost Cities and Malls

Have you heard about China's ghost cities and ghost malls?

Tuesday, March 29, 2011

Odd Lots March 29

The official definition of odd lot is a group of shares amounting to less than 100 shares. For purposes of Stockerblog.com, it is a group of news snippets from various financial and business web sites. It has nothing to do with being 'odd'.

Freakonomics: the Movie

For those of you that enjoyed the book, check out the movie: Freakonomics

Silver Coin Melt Value Calculator
Did you know that ten quarters dated 1964 are worth $67 in silver value? Ten of the 1964 Kennedy half dollars are worth $134.01. Check out the value of your coins at CoinCalculator.com

Base Metal Coin Melt Value Calculator
One dollar worth of 1982 pennies is worth $2.85 based on the copper and zinc content. But a modern quarter is only worth 6 cents based on its copper and nickel content.

Biometric Wallet
Virtually indestructible, the dunhill Biometric Wallet will open only with touch of your fingerprint.

Feces Exhibit in London
For the traveler who has seen almost everything.

Pad.com
The Pad.com domain name is being auctioned off. It has an appraised value of $268,000. Auction closes March 30.


100 Billion Zimbabwe dollars for Three Eggs

Check out the Zimbabwe Inflation in Pictures. Hope inflation in the US will never be like this.

Top Web Sites

The top eleven web sites according to Alexa, ordered by Alexa Traffic Rank, are as follows:

* 1. Google (GOOG)
* 2. Facebook
* 3. Youtube
* 4. Yahoo (YHOO)
* 5. Live
* 6. Baidu (BIDU)
* 7. Wikipedia
* 8. Blogger
* 9. MSN (MSFT)
* 10. Tencent
* 11. Twitter

Top Water Purification and Desalination Stocks


Radioactive substances leaking into the Japanese water supply has drawn attention to water in general. According to a study published in the Proceedings of the National Academy of Sciences Water, almost a billion people will not have enough water by the year 2050. This is causing investors to look at desalination, also referred to as desalinization and desalinisation, which could be one of the leading industries in the next decade, along with water purification. Some major companies, such as Siemens (SI) and General Electric (GE) have water desalination divisions that make up a small part of their businesses, but there are other companies which are more of a pure play in the industry.

According to the list of water purification and desalination stocks at WallStreetNewsNetwork.com, there are over twenty companies involved in the treatment of water, and a dozen paying yields above 1%.

Consolidated Water Co. Ltd (CWCO) is one of the purest plays in the sector. It operates seawater desalination plants and other water services in the Cayman Islands, the Bahamas, Belize, the British Virgin Islands, and Bermuda, using reverse osmosis technology to convert seawater to drinkable water. The stock trades at 17 times forward earnings and pays a decent yield of 2.8%. The company has raised its dividend in eight of the last ten years.

Tetra Tech (TTEK) designs and builds desalination systems that use seawater, brackish water, and reclaimed wastewater sources to help increase water supply, and has been designing desalination plants in Florida since the 1990s. It also designed the first California desalination plant, the Corona Temescal Desalter. The stock trades at 15 times forward earnings. Earnings for the latest quarter were up 19% year over year.

To access a free list of all the stocks involved in desalination and purification, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.


By Stockerblog.com

Monday, March 28, 2011

Tesla’s Future: Will Another Company Be in the Driver’s Seat?

Tesla’s Future: Will Another Company Be in the Driver’s Seat?

Guest Article by: J. Tyler Matuella and Mannie Ajayi

Tesla Motors (TSLA), the American start-up, electric car company that had its IPO in June 2010, has been getting a lot of attention amidst the volatile oil market. The appeal of all-electric vehicles has never been greater because of rising oil prices, consumers’ acute awareness of violent political oppression across the oil-producing Middle East, and new developments in EV technology.

As people in the United States, in particular, search for cheaper alternatives to fuel their cars, Tesla’s industry-leading technology and anticipated launch of the "Model S" sedan in mid-2012 promise to be part of the solution. Its stylish and high-performing sports car, the "Roadster," has already captured the imagination of investors and consumers around the world, including strategic partners such as Daimler, Toyota, and Panasonic.

However, auto industry characteristics aren’t favorable to start-up companies, and the electric vehicle market remains untested in the United States. More importantly, Tesla’s financial risks and debt situation put a big ‘question mark’ over the company’s future and we think it’s unlikely that the company will be successful if it operates alone.

Even with the inherent risks in Tesla’s strategy, we also believe that its intellectual property, powerful brand image, and industry-leading products will make it a very attractive and likely acquisition for a well-established car manufacturer. This article will walk through an analysis of Tesla’s risks and prospects and explain why Tesla could be a prime acquisition target in the future.

The Risks

Tesla’s doing more than reinventing the wheel


With the Roadster, Tesla has delivered a serious setback to the skeptics of EV performance capabilities, and it hopes to do the same with the Model S. But reinventing automobiles isn’t enough for Tesla—it’s also trying to reinvent the business model of the automobile industry from the ground up, including distribution and service networks.

After hiring George Blankenship, Tesla signaled its commitment to a retail strategy of online sales and select showrooms across the world that relies on JIT delivery. This strategy enables Tesla to capture nearly all the value in the supply chain without ceding power to third-party dealers. It also allows Tesla’s dealerships to be smaller than the typical, larger dealership lots, which will save money. For a company that has only sold about 1700 cars, this business model works since they strive to be a low-volume company.

However, there are a few problems with this strategy if the Model S lives up to management’s expectations. First, it remains to be seen if the 50 dealerships that Tesla plans to open will adequately support the 20,000 Model S cars Tesla expects to sell each year. Second, even if the dealerships are sufficient, the individual store traffic will be problematic. Because of the radical nature of Tesla’s product, it’s easy to imagine an exceptional amount of curious customers exploring the small dealerships.

Tesla also runs into a problem with its online sales. Some states, like Kansas, don’t allow direct-factory sales of automobiles but require a brick-and-mortar dealership within the state. That means Tesla might lack a sales presence in many states.

The main risk is how consumers receive this new business model. By hiring Blankenship, Tesla is hoping to replicate "the feel of an Apple (AAPL) store" and bring that positive experience to the auto industry. However, buying a car and buying personal electronics is very different. One downside for online sales is that customers can’t feel or test the product before purchasing it. A $50,000 purchase only magnifies this downside.

Tesla has made a conscious effort to keep their dealerships small and in high-traffic areas. On the other hand, the industry norm is sprawling car lots with huge inventories. Consumers are used to walking around a lot, looking at endless combinations of packages and colors. For such a revolutionary product, it’s hard to imagine that consumers will be satisfied with just a couple of displays, especially if more models are offered in the future.

Best Buy has the Geek Squad, but can the Tesla Rangers also provide reliable service?

Just as Tesla is trying to replicate Apple’s retail model, it’s also trying to copy Best Buy’s (BBY) "Geek Squad" service model. With their limited amount of dealerships, Tesla has found a mobile solution to servicing their customers’ cars. Instead of customers coming to them, Tesla sends its Tesla Rangers to the customers’ home or workplace. The Rangers drive a bus with an attached trailer that carries most equipment needed to service their product on the go.

Even though Tesla maintains that its cars need minimal maintenance and many repairs can be done electronically, problems are bound to arise. Similar to their distribution network, it’s unclear if Tesla Rangers will be able to deal with the anticipated Model S traffic. Currently, the system works efficiently and caters to the low volume Roadster, but if people adopt the Model S faster than anticipated, Tesla could find itself with unhappy customers. For example, if Tesla doesn’t hire enough Rangers for a certain area, customers might run into problems when an emergency arises if all of the Rangers are booked.

The cost of maintaining this service network also could pose a problem. Tesla plans to charge $1 per roundtrip mile, which seems inadequate to cover the costs of reaching customers nowhere near a service center. The system would become very inefficient and costly for a loosely- concentrated customer base. High costs would also arise if a customer’s car was severely damaged and needed transportation to a distant shop.

The worst-case scenario for Tesla would be a recall because of its limited amount of service centers. With the new technology, a recall certainly isn’t out of the question, and customers would have to wait for days to weeks for the Rangers to make their rounds.

Production challenges?


DoubleClick, Youtube, Zappos.com. All great businesses, all acquired for different reasons. Even with a great business model, not every business can make it alone. In the automobile industry, it’s difficult to imagine that Tesla can weather the risks on its own.

One glaring risk is Tesla’s production capabilities. After entering into its partnership with Toyota (TM), NUMMI became Tesla’s sole factory for the Model S. While most established car companies have multiple factories, Tesla remains at risk with any disruption to NUMMI or its supply chain. Tesla must also bear higher-than-average costs to ship its cars worldwide from California.

Another downside to Tesla’s business is its gamble on EVs. Alternative energy and propulsion systems are gaining more attention as gasoline prices continue to their steady upward trend, and there’s no guarantee that consumers will adopt EVs as the alternative. While large companies have the luxury of waiting for the market to pick its propulsion system, Tesla won’t be able to adapt well as a result of its small size and limited financial resources.

No money, too many problems


Tesla’s financial risk is the greatest threat to the company’s future. Historically, Tesla’s cash inflows have come primarily from financing, leaving it with dangerously high levels of debt. Its current stock price is predominately based on investors’ expectations for future earnings. If those sentiments change in the near future, the Tesla’s story could end badly.

Even if investor sentiment doesn’t change, Tesla will have a mountain of debt to service. The United States Department of Energy [DOE] loaned Tesla $465 million at the beginning of the year. This loan has several restrictions that are structured around the progress of the Model S and several financial ratios. Tesla stands to lose revenue if the Model S delays, since the DOE loan pays in installments as the Model S reaches various development and production benchmarks. Management even said that if it can’t access the DOE loan in its entirety for any reason, then it’ll have to issue more equity or debt, diluting the stock price and increasing company risk.

The auto industry is notoriously difficult for start-ups. By going alone, Tesla is severely disadvantaged in scale, established distribution channels, production expertise, and financial resources. Even with their solid product and performance so far, it’s tough to envision that Tesla will reach critical mass and profitability anytime soon.

The Prospects


Nobody can hold a light to Tesla’s tech

It’s not fast enough. It doesn’t go far enough. It’s too small. These are all common reasons for why hybrids still comprise only 3-4% of the American car market, and why many Americans don’t believe electric cars are a viable transportation option in the future. But that’s one of the fascinating things about Tesla’s planned Model S sedan (~$50,000 base): if it works as the company says, then the Model S will actually be bigger and faster than comparably-priced, gas-powered cars. Not to mention, the base range of 160 miles (300 miles with the most expensive battery pack) will satisfy most Americans’ monthly driving needs. The Roadster currently goes about 200 miles per charge.

It’s no wonder, then, that auto manufacturing giants Toyota and Daimler (DDAIF.PK) have recognized Tesla’s remarkable advances in battery and electric powertrain technology, and made significant financial investments through formal partnerships. They’re attracted to Tesla’s culture of innovation that has propelled it to technologically lead the pack of companies hoping to launch their own EVs. In addition, Tesla spokesperson Khobi Brooklyn commented in an email that the recent $30 million investment by Panasonic (PC) will allow Tesla to benefit from Panasonic’s "fundamental chemistry knowledge and experience as the world’s leading battery cell manufacturer." Ms. Brooklyn also noted that Panasonic "is designing an automotive grade cell specifically optimized for power, safety and cost" and is a "preferred supplier" for Tesla.

As mentioned before, Tesla’s prospects heavily rely on a successful launch of its Model S in mid-2012. Any long delays in production could spell financial demise for the company. Having said that, Tesla has done a great job of advancing its technology—quickly, and on a shoestring budget—to the point where EVs actually look like a feasible alternative to gas-powered cars. The release of the first operational Model S in January 2011 was an important step. Based on current and future industry competition, we expect Tesla to retain its technological competitive advantage for at least the next few years and succeed in making the Model S a fully-functional and well-performing vehicle.

Who’s the EV competition?


We don’t want to simply provide a list of all of the possible competing EVs, since Automotive News' "Watts Up" already does a pretty good job of that. Instead, we’ll explain why another one of Tesla’s key assets is that the Model S will occupy a unique position in the EV market when it launches in 2012.

There are a few general parameters that we think consumers will judge electric cars on: performance, range, price, and style. (Safety, too, but there isn’t yet sufficient safety data that would distinguish the EVs from each other). Of course, different consumers are looking for different combinations of those parameters. After reviewing the competition, we think that the Model S—if it works close to expected—exhibits a unique and preferable combination of those decision factors that will prevent close competition. Price, range, and performance attributes suggest that "competitors" like the Chevy Volt, Nissan (NSANY.PK) Leaf, or Fisker Karma appear to target different customer segments altogether.

Watch for an acquisition of Tesla in the next 3-5 years

We examined the future of the EV industry, Tesla’s products, and different key aspects of Tesla’s business model. As stated in the first section of this article, we don’t think that Tesla will operate optimally alone, even if the Model S functions well. However, we have a number of reasons why Tesla is an attractive and likely acquisition target over the next three to five years:

1) Rising oil prices mean EV start-ups will attract the attention of traditional automakers.

The future of Tesla’s EV market has never looked better because of trends in the oil market, and most established automakers understand that. Instead of trying to develop their own EV technology from scratch, many automakers are "partnering" with start-ups like Tesla that have already spent years developing a niche expertise in EV technology. A large part of EVs’ economic appeal depends on rising oil prices, so why will oil prices rise over the long term?

The deep recession of the last two years temporarily ameliorated the "pain at the pump," but the climbing global demand for oil with a resurging economy has caused oil prices to threaten the fragile recovery.

On another level, unprecedented unrest and violence in the Middle East have shown American consumers exactly why the oil addiction can’t be taken lightly. Even the flattening of oil prices from reduced demand in Japan won’t last very long. Many experts think that the accompanying nuclear crisis and consequent backlash against nuclear power in Japan will ultimately cause the Japanese government to use more oil to produce electricity in the future as a substitute. Moreover, since the "cheapest" oil has been largely tapped out, and demand from China, India, and Brazil continues to burgeon, it’s very likely oil prices will move in one direction—up. That means the cost savings from driving an electric vehicle will also increase, and cause more consumers to switch over to EVs. Less than 1% of total U.S. energy production comes from petroleum, so electricity prices will be largely insulated from volatility in the oil market.

2) Tesla’s brand image and potential synergies make it attractive to luxury automakers entering the EV market.

Tesla has made a name as a top-tier trailblazer, designer, and producer of electric vehicles and technology. When the company first started in 2003, the idea of EVs hitting the mainstream market was only a dream. But that didn’t stop Tesla from successfully developing the Roadster, which hit markets in 2008 with critical acclaim. Tesla’s Roadster destroyed the notion that EVs inherently are less powerful and poorer performing than their gas counterparts.

A luxury automaker like Daimler would sync perfectly with this brand image. Daimler prides itself on cutting-edge technology, class, and style in its cars, very similar to Tesla. Tesla’s culture of innovation would find a welcome home at Daimler, which has sufficient cash flow to fund development without taking on potentially debilitating levels of debt like Tesla currently has to do.

Aside from the close strategic fit, there are enormous synergies that a luxury automaker like Daimler could realize if it acquired Tesla. Many more potential synergies exist; these are just a few of the tangible ones:

One synergy is access to Tesla’s unparalleled assortment of intellectual property in electric powertrain technology and car design. Tesla currently has 35 patents and 280 pending patent applications. By acquiring Tesla, a traditional automaker won’t have to spend a lot of time and money developing the technology itself. This IP also has the potential to produce large amounts of revenue, but only if the Model S and future models can be launched in a timely manner and through wide distribution and service channels that characterize large, established automakers.

That brings up the next synergy, which are the distribution channels. As said before, Tesla currently faces a huge problem with its inadequate distribution strategy for the Model S that likely will result in significantly lower sales than otherwise may be achieved. Since Tesla’s management knows that constructing a large network of brick-and-mortar stores is beyond their financial resources, they’ve instead adopted a strategy of building a small number of company-owned stores and then utilizing online sales (but there are legal restrictions on online car sales in many states). An acquisition by a large automaker would give Tesla access to a worldwide network of established dealerships and service centers; the largest incremental cost only would be building "bump-ons" to the dealerships to house the separate Tesla brand. Also, customers might feel more comfortable with a company that operates a regular service network, instead of solely relying on "mobile service" that doesn’t seem feasible with a planned level of car sales in the tens of thousands per year.

The last main synergy comes from established automakers’ expertise and efficiency in high volume car-manufacturing. With such high fixed costs in the auto industry, sales volume is critical to achieving profitability, but Tesla doesn’t have any experience with large scale manufacturing or volume sales.

It has tried to avoid this issue by saying that it specifically structured its business model to be able to achieve profitability with relatively low sales volumes, but that’s very tough to believe given industry precedents.

A manufacturing expert like Daimler or Toyota could use its extensive manufacturing experience to streamline and perfect high-volume production of the Model S, and also help Tesla secure much more favorable procurement contracts from suppliers.

3) Provisions in the Tesla-Daimler partnership suggest Tesla is already viewed as a potential target.

The agreement between Daimler and Tesla interestingly includes many "anti-takeover" provisions that would make an acquisition from a third party much more difficult. For example, Blackstar (an affiliate of Daimler) has a right of notice on any acquisition proposal that Tesla receives from any company except Daimler, and Blackstar then has a right to submit a competing acquisition proposal.

On the other side, Tesla’s CEO Elon Musk, who is also Tesla’s largest shareholder, agreed to not sell any shares of his stock to any auto manufacturer except for Daimler. He also agreed that he won’t vote any of his shares in favor of a liquidation transaction to any automobile equipment manufacturer, other than Daimler, without affiliate Blackstar’s consent.

So, it appears that there’s much more to the Daimler-Tesla partnership than a simple a transfer of capital and electric powertrain products. Tesla has done a good job in its contracts with Daimler and Toyota to specifically protect its intellectual and technological property from being transferred, meaning that Tesla isn’t giving away its competitive advantages. These provisions indicate that Daimler may be closely examining an acquisition of Tesla in the future, likely on the condition that Tesla can prove the Model S is fully functional and ready for production. Otherwise, it doesn’t make much sense for Daimler to have established the restrictive anti-takeover provisions that essentially give it "priority" access for an acquisition. Tesla and Daimler spokespeople declined to comment about the reasons for establishing those provisions in the agreement, so the true strategic intentions are unknown at this time.
Conclusion

After researching and analyzing auto industry conditions and Tesla’s financial situation, we think it’s unlikely that Tesla will financially succeed on its own even if the Model S works as predicted. However, the direction of the EV market, Tesla’s cutting edge technology, positive brand image, and potentially enormous synergies make it a likely acquisition for a luxury automaker seeking to enter the growing EV market.

Disclaimer: The conclusions in this article reflect the opinions of the authors only, and not those of any of the mentioned companies’ management or employees, nor the opinion of Stockerblog.com.

Disclosure: The authors do not own shares of Tesla, Daimler, or Toyota, nor do they plan to purchase shares of those companies within the next month.

Additional Disclosure: The proprietor of Stockerblog.com did not own shares of TSLA at the time the article was written.

Sunday, March 27, 2011

Stocks Selling Near Cash and Debt Free

Being debt free, either from a personal standpoint or a corporate standpoint, can carry many financial advantages. Which means that debt free stocks selling at or near cash can be a very favorable investment. These are stocks which have virtually no debt and are trading close to the amount of cash the company has per share. Without any debt and a lot of cash,the company would be unlikely to go out of business, unless it is a biotech with a high burn rate. Also, the cash can make the company a possible takeover candidate.

WallStreetNewsNetwork.com just updated its list of Stocks Selling Near Cash and Debt Free, which shows the recent price, market cap, cash per share, forward PE, and cash per share ratio.

As an example, Sycamore Networks Inc. (SCMR), which is in the intelligent bandwidth solution business, trades at less than $24 per share yet has over $15 in cash per share. The company is debt free.

WellCare Health Plans, Inc. (WCG) is another stock with lots of cash. This debt-free managed health-care services company, which sells for less than $41 per share, has a significant 34.50 per share in cash. The stock trades at 13 times forward earnings.

To see the other stocks selling near cash and debt free, which include a couple stocks trading for less than their cash per share, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above stocks at the time the article was written.

By Stockerblog.com

Saturday, March 26, 2011

What Googlers are Thinking About the Stock Market

Want to know what the searchers on Google (GOOG) think about the stock market. Check out the adjectives like rigged, calm, and fixed.

Stocks Going Ex Dividend the Fifth Week of March


Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the market capitalization, the ex-dividend date and the yield.

Nicor Inc. (GAS) market cap: $2.4B ex div date: 3/29/2011 yield: 3.6%

Kilroy Realty Corporation (KRC) market cap: $2.0B ex div date: 3/29/2011 yield: 3.7%

National Health Investors Inc (NHI) market cap: $1.2B ex div date: 3/29/2011 yield: 5.5%

Nucor Corporation (NUE) market cap: $14.8B ex div date: 3/29/2011 yield: 3.1%

PG&E Corporation (PCG) market cap: $18.0B ex div date: 3/29/2011 yield: 4.0%

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Sunday, March 20, 2011

Royal Wedding Vacations Help High Yielding British Stocks

April 29 is the big day, the day that Prince William will be marrying Kate Middleton at Westminster Abbey. The wedding is expected to boost the British economy to the tune of more than $1 billion. If you enter Royal Wedding Vacations into Google (GOOG), you will get 1,190,000 results.

Many of the publicly traded stocks based in the United Kingdom should benefit from the biggest influx of money into England since the Beatles. Plus, many of these stocks pay decent dividends. According to WallStreetNewsNetwork.com, there are over 15 British stocks with yields of 2.5% or more.


As an example, Intercontinental Hotels Group plc (IHG), based in Denham, UK, operates 64 hotels just in the London area alone. The stock trades at 15.8 times forward earnings and pays a nice yield of 3.1%. Avondale recently initiated coverage on the company a few months ago, rating it Market Outperform.

Many will be toasting with Diageo plc (DEO) products. This is the company that makes Johnnie Walker scotch, Smirnoff vodka, Baileys Original Irish Cream, Captain Morgan rum, Jose Cuervo tequila, Tanqueray gin, Guinness stout, and various wine products including Blossom Hill, Sterling Vineyards, Beaulieu Vineyard, Chalone Vineyard. The stock has a forward price to earnings ratio of 13.4 and sports a yield of 2.6%.

Of course, many eyeballs will be looking at television screens for the next month, capturing every bit of gossip and news about the upcoming nuptials. So British Sky Broadcasting Group plc (BSYBY.PK) (BSY.L) should be a major beneficiary. The stock trades at 14 times forward earnings and yields 2.6%.

To see a list of all the top yielding British stocks, that can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Saturday, March 19, 2011

High Yield Tobacco Stocks

On Friday, after tobacco companies were anxiously awaiting a report from the Food and Drug Administration, it was reported that the FDA would not ban menthol cigarettes. The news caused several of the cigarette stocks to rise. Lorillard, Inc. (LO) rose by over 10% for the day. Some investors have strong feelings against investing in cigarette stocks, but if you don't, you should consider them for their extremely high yields. Lorillard has a payout of 6.6%. The stock, which markets the Newport, Kent, True, Maverick, Old Gold, and Max brands, trades at 11.6 times forward earnings. According to WallStreetNewsNetwork.com, there are over half a dozen tobacco stocks with yields in excess of 4%.

Another example is Vector Group Ltd. (VGR), a Florida based tobacco company that has many brands of cigarettes including Liggett, Grand Prix, Eve, Pyramid, USA and nicotine-free Quest. The stock has a price to earnings ratio of 23.7, and pays a yield of 9.3%.

Reynolds American Inc. (RAI) makes and markets cigarettes and other tobacco products including the Camel, Kool, Pall Mall, Doral, Winston, Salem, Misty, Capri, Dunhill, and Natural American Spirit brands. The stock has a forward PE ratio of 11.8, and pays a yield of 6.3%.

Altria Group Inc. (MO) is a Virginia based company that makes and markets cigarettes, cigars, and beer. It is the largest cigarette company by market cap in the US. The stock has a forward PE of 11.3, and pays a yield of 6.1%.

For a list of all the high yield tobacco stocks, which and be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

If you haven't seen the Graphic Color Anti Smoking Pictures to Appear on Cigarette Packs, you should check them out.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Wave Theory for Alternative Investments

I love alternative investments. They can be much more exciting than stocks and bonds. Venture capital, private equity, hedge funds, commodities, and precious metals make up the investment arena of 'alternatives'.

Wave Theory For Alternative Investments: Riding The Wave with Hedge Funds, Commodities, and Venture Capital by Stephen Todd Walker is the most complete book on alternative investments I have ever read. It is filled with numerous tables, charts, and graphs to make for easy reading.

Chapter 3 is probably the most important as it covers the advantages and disadvantages of all types of alternatives, and even more important, the section called Top 25 Alternative Surfing Maneuvers.

Here's a bit of trivia from the book. Did you know that back in 1999, the CIA (yes the US government's Central Intelligence Agency) set up its own venture capital fund? The fund, called In-Q-Tel, has invested in over 100 companies. It even invested in the technology that is now known as Google Earth.

Chapter 9 is my favorite section of the book, called Venture Capital Investment Vehicles. It covers what to invest in, how to invest, and the top twenty questions you should be asking before committing your money.

One great feature of the book is that Walker provides plenty of suggested web sites and other books.

If you have ever been interested in investing in alternative investments, or have started to dig your foot in the alternative water, or even if you have already been investing for a while, you should read Wave Theory For Alternative Investments.

Thursday, March 17, 2011

Hot Coffee Stocks

News has been buzzing in the financial press recently about the possible takeover of Peet's Coffee (PEET) by Starbucks (SBUX). This is on the heels of the news about the partnership of Starbucks with Green Mountain Coffee Roasters (GMCR).

Some investors consider McDonald's Corporation (MCD) to be a coffee retailer. However, for retailers with a primary product of coffee, Starbucks is the largest, with a market cap of over $26 billion. The stock trades at 26 times current earnings and 20 times forward earnings. It also pays a yield of 1.5%.

Another way to play America's (and the world's) demand for coffee is to invest in the wholesale coffee roasters. Coffee Holding Co., Inc. (JVA) is a roaster of wholesale coffee which markets wholesale green coffee, private label coffee, and branded coffee in the United States and Canada. The stock trades at 13.5 times earnings and has a forward price to earnings ratio of 11. The yield is a generous 2.7%.

If you believe the price of coffee is going to rise, you can always invest in the iPath DJ-UBS Coffee TR Sub-Index ETN (JO), which attempts to track the Dow Jones-UBS Coffee Total Return Sub-Index.

For a free list of coffee stocks, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author owns MCD.

By Stockerblog.com

High Yield Telephone Stocks


According to the latest Forbes Magazine billionaire issue, the richest man in the world is Carlos Slim Helu, who made much of his money from the Latin American telecommunications company, America Movil (AMX). The company announced this week that it is proposing a two for one stock split and a stock buyback in excess of $4 billion. The stock trades at fourteen times current earnings and twelve times forward earnings. However, it only pays a nominal yield of 0.4%.

Fortunately, there are plenty of other telecom stocks with high yields, as much as 8%. WallStreetNewsNetwork.com has updated its free list of over ten telecom stocks yielding 3% or more. For example, Alaska Communications Systems Group, Inc. (ALSK) is a provider of both wireless and landlines in the forty-ninth state. The company has a market cap of $438 million, trades at 25 times forward earnings, and pays a generous yield of 8.5%.

Qwest Communications International Inc. (Q), which is lucky to have a single letter stock ticker symbol, is a $12 billion market cap company, a forward PE of 16, and a yield of 4.8%.

The high paying telecom stock CenturyLink, Inc. (CTL) has a 7.2% dividend payout. The market cap is $12.5 billion, with a forward price to earnings ratio of 13.5. The company has increased its dividend in nine out of the last ten years.

To see the rest of the high paying telecommunications companies, which includes half a dozen with yields above 6%, check out the free list of high yield telecom stocks, at wsnn.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Tuesday, March 15, 2011

High Yield Shipping Stocks


Besides utilities and telecom stocks, there aren't many other sectors that pay high yields. One high dividend industry that hasn't received much attention recently is shipping. There are two primary types of shippers, the liquid shippers which transport crude oil, petroleum products, and liquefied natural gas, and the dry bulk shippers, which transport iron ore, coal, grain, minerals, fertilizers, and other non-liquid items.

Shipping stocks generate fairly significant dividends with more than 15 yielding in excess of 3%, according to the free list that was recently updated by WallStreetNewsNetwork.com. For example, Nordic American Tanker Shipping Ltd. (NAT) is a liquid shipper that yields 4%. The stock trades at 40 times forward earnings. Unfortunately, revenues were down 23.8% for the latest reported quarter; the company reports next earnings on May 4.

International Shipholding Corp. (ISH) is a dry bulk shipper with a 6.5% yield, and trades at 10.7 times earnings. Revenues for the latest quarter were down 35.8%. The earnings announcement is April 25.

Another high yield dry bulk shipper is Navios Maritime Holdings Inc. (NM) paying 4.4%, and a price to earnings ratio of 4.3. Earnings for the latest quarter were up 27.7%, with earnings rising over 300%. The company reports May 23.

For a free list of over 20 high dividend shipping stocks, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Sunday, March 13, 2011

A Day Made of Glass - Incredible Video

Check out this amazing video about glass from Corning (GLW).

Odd Lots March 14

The official definition of odd lot is a group of shares amounting to less than 100 shares. For purposes of Stockerblog.com, it is a group of news snippets from various financial and business web sites. It has nothing to do with being 'odd'.

*

The SEC is looking at hedge funds with repeated, above-market returns

*

The US National Debt in real time, along with debt per citizen and debt per taxpayer.

*

Berkshire Hathaway's (BRK-A) (BRK-B) Warren Buffett in a rock video.

*

Check out mortgage brokers' backgrounds at Nationwide Mortgage Licensing System and Registry.

*

Zions Direct has set up an auction system where you can bid on corporate bonds, municipal bonds, and certificates of deposit. For example, a Wal-Mart 13 month bond is currently bid to yield 2.25% and a University of North Texas one month municipal bond is currently bid at 2.46%.

*

Carl Icahn is giving back his investors' money.

*

Three extra days to pay your taxes. Taxpayers will have until Monday, April 18 to file their 2010 tax returns and pay any tax due because Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15. By law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have three extra days to file Federal taxes this year. Caution: this deadline extension probably doesn't apply to your state income tax.

Charlie Sheen Stock Index Graph


The above chart shows how the Charlie Sheen Stock Index has performed over the last three years. As you can see, except for a drop at the beginning of 2009, the Index has outperformed the Dow Jones Industrial Average. As a matter of fact, the Sheen Index is up 6.2% so far this year versus 4.3% for the Dow Jones Industrial Average. Since the beginning of 2010, the Sheen Index was up 21.1% versus 15.0% for the Dow, and from the beginning of 2009, Sheen was up an incredible 65.0% versus only 34.7% for the Dow.

The blue line represents Charlie Sheen and the red line represents the Dow Jones Industrial Average. Even during the couple weeks after the February 24 radio broadcast of the Charlie Sheen interview hosted by Alex Jones, the Charlie Sheen Stock Index rose 2.0% versus only 0.8% for the Dow.

Check out the previous article on the Charlie Sheet Stock Index, which describes in detail all the stocks and the connection with Sheen, including such stocks as CBS (CBS), Time Warner (TWX), and News Corporation (NWS) (NWSA). You can also find a free downloadable list of the Sheen stocks at WallStreetNewsNetwork.com.

Assumptions: This is a price-weighted index, similar to the Dow Jones Industrial Average. It includes dividends. Both indexes were converted to a starting baseline of 100.

Disclosure: Author did not own any of the above at the time the article was written. No celebrity endorsement is expressed or implied. No investment recommendations are expressed or implied.


By Stockerblog.com

Saturday, March 12, 2011

Top Stocks of Russia

Did you know that the Market Vectors Russia Exchange Traded Fund (RSX) has significantly outperformed the S&P 500 over the last two years. It has also outperformed over the last year, the last six months, and the last three months. Where has all this strength come from?

Russia has the world's largest reserves of mineral resources and energy resources. It also has the world's largest forest reserves. According to what the Russian government reports, the literacy rate is 99.4%. Of all the major economies, it has one of the lowest foreign debts. In addition, it has the fourth largest amount of farmland in the world, the world's largest natural gas reserves, the second largest coal reserves in the world, the the eighth largest oil reserves in the world, and is the fifth largest renewable energy producer in the world.

The following are some of the companies that are based in Russia that trade in the United States, that were turned up by WallStreetNewsNetwork.com.

Mechel OAO (MTL) is a mining and steel production company. The stock has a price to earnings ratio of 16, a forward PE of 8, and a PEG of 1.32.

Mobile Telesystems OJSC (MBT) is a provider of cellular telecommunications services in Russia, Ukraine, Uzbekistan, and Turkmenistan. The stock has a PE of 17, a forward PE of 10, and a PEG of 0.90.

Vimpel-Communications (VIP) is a provider of wireless telecommunications services in Russia, Kazakhstan, Tajikistan, Ukraine, Uzbekistan, Georgia, and Armenia. The stock has a forward PE of 7, and a PEG of 0.31. It also pays a yield of 2%.

Wimm-Bill-Dann Foods OJSC (WBD) is a food, dairy, and beverage products company. The stock has a PE of 55, a forward PE of 28, and a PEG of 1.80. The stock pays a yield of 0.6%.

You can find a free list of more than ten Russian stocks that trade in the US at WallStreetNewsNetwork.com, which can be downloaded, sorted, and updated.

Dislcosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Stocks Going Ex Dividend the Fourth Week of March


Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the market capitalization, the ex-dividend date and the yield.

LTC Properties, Inc. (LTC) market cap: $734.1M ex div date: 3/21/2011 yield: 6.0%

Telefonos de Mexico, S.A. (TMXLF) ex div date: 3/21/2011 yield: 4.8%

Xcel Energy Inc. (XEL) market cap: $10.8B ex div date: 3/22/2011 yield: 4.3%

Portland General Electric Company (POR) market cap: $1.7B ex div date: 3/23/2011 yield: 4.6%

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Friday, March 11, 2011

Stem Cell Stocks Are Growing


According to the latest Journal of the Congress of Neurological Surgeons Research, Neurosurgery, bone marrow stem cells derived from a patient's own bone marrow were safely used in pediatric patients with severe traumatic brain injury, according to results of a Phase I clinical trial at The University of Texas Health Science Center at Houston.

Research has been continuing into the utilization of stem cells for gene therapy and the treatment of Parkinson’s disease, heart disease, diabetes, multiple sclerosis, arthritis, and many other medical conditions. Stem cells can come from various sources including embryos, cord blood, which is the blood from umbilical cords, and even in baby teeth. WallStreetNewsNetwork.com just updated its free downloadable list of over ten stem cell stocks. Can one of these provide a cure for your portfolio?

Alexion Pharmaceuticals (ALXN) is a Connecticut based company with an $8.9 billion market capitalization that is involved in the development of biologic therapeutic products for the treatment of hematologic and cardiovascular disorders, auto-immune diseases, and cancer. The company licenses porcine embryonic stem cells for transgenic animals. The stock has a PE of 94 and a forward PE of 33.

Cellgene (CELG) is a $24.7 billion market cap company involved in the discovery and production of therapies designed to treat cancer and immune-inflammatory-related diseases. One of the company's main products is Thalomid, which is used for the treatment of erythema nodosum leprosum, a complication of leprosy. They also received a patent on placental stem cell recovery. The stock sports a PE ratio of 28 and a forward PE of 13.

Integra Lifesciences Holdings (IART) is a New Jersey based $1 billion market cap company that develops, manufactures, and sells medical devices, implants, biomaterials, and instruments to the stem cell, surgery, and soft tissue repair markets. The stock trades at 22 times earnings, and 14.5 times forward earnings.

For a database of over a dozen stem cell stocks which you can download, sort, and update, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Thursday, March 10, 2011

Top American Oil Royalty Income Trusts


Now that oil is over $100 a barrel, income investors are taking a closer look at oil and gas income investments. Several options are available. First, there are the stocks of the multinational oil companies, such as Exxon Mobil Corp. (XOM) with a 2.1% yield and ConocoPhillips (COP), which has a 3.3% yield.
But there are other investment instruments, including oil income royalty trusts, oil master limited partnerships also known as MLPs, and one example of a publicly traded Limited Liability Company or LLC. Income from trusts and MLPs avoid double taxation; virtually all earnings are passed through to the shareholders without being taxed at the company level.

The royalty trusts have several advantages over the partnerships. Limited partnerships don't send out 1099 forms, they send out a Schedule K-1 Form, and the income is reported on your tax return differently from regular dividends, with additional forms and preparation time involved. In addition, putting an MLP into a retirement plan can create problems because of the UBTI or Unrelated Business Taxable Income issue, which could put the tax deferred status of your retirement plan in jeopardy. I am not an accountant, so discuss MLP's with your tax advisor or CPA for clarification, before investing.

The royalty trusts don't have this problem as they send out 1099's on their income distributions, similar to dividends. According to a list just developed at WallStreetNewsNetwork.com, there are several different oil royalty income trusts with yields ranging from 4% to above 11%.

For example, Hugoton Royalty Trust (HGT), which trades at 13.8 times earnings, pays a generous yield of 6.7&. This Dallas, Texas based company pays dividends monthly and was founded in 1998.

San Juan Basin Royalty Trust (SJT) yields 6.6% and sports a price to earnings ratio of 6.6%. This Fort Worth based company also pays monthly and was founded in 1980.

Mesa Royalty Trust (MTR) is an Austin, Texas trust that has been around since 1979. It trades at 13.8 times earnings and yields 5.7%. As with most other oil trusts, distributions are made monthly.

When you check out the free list of oil income investments at WallStreetNewsNetwork.com, pay close attention to the last column, which shows the company structure, either limited partnership, trust, or LLC. Also, although a few of these have extremely high yields above 8%, use caution before investing as the yields may not be sustainable.

Disclosure: Author does not own any of the above.


By Stockerblog.com

Tuesday, March 08, 2011

Top Ylelding REITs


It you think real estate is on the road to recovery, then one of the best ways to invest is through the use of Real Estate Investment Trusts, also known as REITs. These investments pass through almost all their income to avoid double taxation, which is what most regular corporations are subject to, once at the corporate level and once at the shareholder level.

REITs have several advantages over owning real estate directly, including liquidity, professional management, diversification, and avoidance of dealing with tenants directly.

There are numerous REITs available, so you need to do your due diligence, especially checking debt levels. REITs are available that specialize in apartments, commercial buildings, industrial properties, government buildings, medical buildings, and mortgages.

WallStreetNewsNetwork.com has just updated its list of over a dozen of the highest yielding Real Estate Investment Trusts. Yields range from 3% to over 19%, however I don't believe the extremely high yields are sustainable.

Public Storage (PSA) offers a yield of about 3%, and trades at 44 times earnings. This REIT has a narrow focus, owning and operating self-storage facilities in the United States and Europe. The company has a long track record, with monthly dividends paid since 1988.

Another example is National Health Investors Inc. (NHI) which pays a decent yield of 5.2% and has a price to earnings ratio of 19. The REIT invests in health care properties primarily in the long-term care industry. The company has been paid quarterly dividends since 1992.

LTC Properties, Inc. (LTC) which sports a yield of 5.8% and sports a PE of 24, is another long-term care real estate investment trust. This is a REIT that pays monthly dividends, and the dividend track record also dates back to 1992.

To see the entire list of high yield REITs, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Book Review: The Upside of Irrationality

Dan Ariely develops the most fascinating psychological and behavioral economic experiments and makes them extremely interesting to read about. His book The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home is a quantum leap beyond his previous book Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions.

Ariely's latest book covers such areas as what makes workers happy and sad, why people seek revenge and how it can affect them from an economic standpoint, and the long term effects of short term emotions. In the chapter On Adaption, he discusses whether it is advantageous to take breaks during activities you don't like. What do you think? He says "You may think that taking a break during an irritating or boring experience will be good for you, but a break actually decreases your ability to adapt, making the experience seem worse when you have to return to it. When cleaning your house or doing your taxes, the trick is to stick with it until you are done." Now do you think that taking a break from pleasurable experiences is a god or bad idea? Read the chapter to find out, and to find out why.

The two interesting and amusing chapters were Hot or Not? Adaption, Assortative Mating and the Beauty Market and When a Market Fails: An Example from Online Dating.

Ariely had a really rough life from a physically standpoint, and he shows how his life experience affected his interests, his profession, and his research.

If you need a good non-fiction read that will hold your attention, check out The Upside of Irrationality.

Stocks Going Ex Dividend the Third Week of March


Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable Excel list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the market capitalization, the ex-dividend date and the yield.

NYSE Euronext (NYX) market cap: $9.7B ex div date: 3/14/2011 yield: 3.3%

Rogers Communications Inc. (RCI) market cap: $19.3B ex div date: 3/16/2011 yield: 4.2%

Sempra Energy (SRE) market cap: $12.7B ex div date: 3/16/2011 yield: 3.6%

DTE Energy Company (DTE) market cap: $7.9B ex div date: 3/17/2011 yield: 4.8%

Navios Maritime Holdings Inc. (NM) market cap: $573.1M ex div date: 3/18/2011 yield: 4.4%

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time article was written.

By Stockerblog.com

Saturday, March 05, 2011

Charlie Sheen Stock Index Outperforms the Dow Jones Industrial Average

Unless you never watch TV, never listen to the news on the radio, and never look at magazine covers, you know who Charlie Sheen is. Star of the extremely popular TV show Two and a Half Men, earning around 1.8 million dollars an episode, he has been in the news daily during the last couple weeks due to the disagreement between him and the show's producers regarding the cancellation of the show. Sheen's outspoken comments have made headlines, and he has been the guest on several talk shows. So it is only fitting that we look at the companies that have a connection to Charlie Sheen to see how their stocks have performed.

Stockerblog.com was the original developer and creator of numerous celebrity stock indexes, including the Paris Hilton Stock Index, the Gisele Bunchen Stock Index, the Heidi Klum Stock Index, and the Angelina Jolie Stock Index. Now it is time for the Charlie Sheen Stock Index, details of which can be found at WallStreetNewsNetwork.com. Based on the companies that have some connection to Sheen, the Sheen Index has outperformed the Dow Jones Industrial Average, since the beginning of this year, the beginning of last year, the beginning of 2009, and the beginning of 2008. As a matter of fact, since the February 24 radio broadcast of the Charlie Sheen interview hosted by Alex Jones, the Charlie Sheen Stock Index rose 2.0% versus only 0.8% for the Dow.

Two and a Half Men
, which I consider the funniest show on television, has ranked in the top 20 television shows since 2003, and last year garnered almost 15 million viewers. The show is broadcast on CBS (CBS) and is rerun on the CW Network which is 50% owned by CBS, along with Warner Bros., a division of Time Warner (TWX). CBS trades at 23 times current earnings and 12.5 times forward earnings, and pays a small dividend of 0.9%. If you are looking for high income, you could consider the CBS Corporation New Senior Note (CPV), which yields a generous 6.6%, payable quarterly. Earnings for the latest quarter were up an amazing 381.3% (could a lot of that be due to Two and a Half?) over the same quarter last year.

The show is filmed at Warner Bros. Studios and Warner Bros. Television is one of the production companies. Time Warner has a price to earnings ratio of 16.6 and forward PE of 12. It generates a decent yield of 2.5%. Earnings for the latest quarter were up 21.9%.

Charlie Sheen did an outstanding job of portraying Bud Fox in the classic stock market movie Wall Street, and along with Michael Douglas, made the movie a blockbuster hit which is still popular today. Sheen even appeared in the sequel Wall Street: Money Never Sleeps. Both movies were produced by 20th Century Fox, a subsidiary of News Corporation (NWS) (NWSA). News Corp. has a PE of 14.7, a forward PE of 13.5, and yields 0.9%.

In terms of celebrity endorsements, Sheen appeared in commercials and print ads for the Comfortsoft line of Hanes undershirts for Hanesbrands Inc. (HBI). Although the ads were dropped last year, Hanes may still benefit from them (an alternative to bowling shirts). Hanesbrands trades at 11.8 times current earnings, and has a forward PE of 8.6.

Sheen is now sending out tweets on Twitter, thanks to the help of Ad.ly. Unfortunately, Twitter and Ad.ly are not currently publicly traded companies. However, Charlie and one of his girlfriends, Rachel Oberlin, have promoted Naked Juice, a product owned by Pepsico (PEP) on Twitter. Pepsico has a PE of 16 and yields 3.0%.

In regard to performance of the Charlie Sheen Stock Index, it is up 6.2% so far this year versus 4.3% for the Dow Jones Industrial Average. Since the beginning of 2010, the Sheen Index was up 21.1% versus 15.0% for the Dow, and from the beginning of 2009, Sheen was up an incredible 65.0% versus only 34.7% for the Dow.

To see a free list of all the stocks in the Charlie Sheen Stock Index, along with financials and the connection to Sheen, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written. No celebrity endorsement is expressed or implied. No investment recommendations are expressed or implied.


By Stockerblog.com

Friday, March 04, 2011

Hummingbird Robot Spy Plane

A Monrovia, California company called AeroVironment, Inc. (AVAV), has developed a spy plane that looks like a real hummingbird. AeroVironment, a manufacturer of unmanned aircraft systems and efficient energy systems, has been in business since 1971. The stock trades at 34 times current earnings and 24 times forward earnings, and carries a price earnings growth ratio of 1.28.

Check out the following video of the company's bird spy plane. The upper left portion of the video inset shows what the bird robot is actually seeing.

Pink Sheet Stocks Not Just Microcaps, Many Quality Stocks

Many investors are under the misconception that pink sheet stocks are microcap stocks. But this is not correct. Pink Sheet stocks include some of the highest quality stocks in the world, and often it's the only way to invest in many top quality foreign stocks. Many European companies have decided to drop their listings on the New York Stock Exchange, in order to avoid listing fees and onerous reporting requirements, and now trade over-the-counter on the Pink Sheets. According to WallStreetNewsNetwork.com, there are over 40 Pink Sheet stocks with market caps over $8 billion.

One example is Bayer (BAYRY.PK), the famous German-based manufacturer of Bayer aspirin along with numerous other health care, crop science, and material science products. Bayer formerly traded on the NYSE but now trades on the Pinks. The stock has a price to earnings ratio of 20.5, trades at 13 times forward earnings, and has a price earnings growth ratio of 2.15.

Fiat S.p.A. (FIATY.PK), the Italian automobile and truck manufacturer is another company on the Pink Sheets. The stock has a PE of 15, a forward PE of 13, and and a very favorable PEG ratio of 0.74.

Volkswagen AG (VLKAY.PK) is the German car manufacturer which has the Volkswagen, Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda and Volkswagen Commercial Vehicles brands. The stock has a P/E ratio of 11.6, a forward PE of 8, and a PEG of 0.19.

Roche Holding Ltd. (RHHBY.PK), the Swiss pharmaceutical company, trades at 3.5 times forward earnings, and has a PEG ratio of 0.55.

Rolls Royce Group plc (RYCEY.PK), the manufacturer of aircraft engines, has a PE ratio of 21, a forward PE of 18, and a PEG of 1.69.

Please note, the stock symbols for these stocks use the .PK extension for certain sites such as Yahoo Finance. To see the recently updated list of top Pink Sheet stocks, which can be download, updated, and sorted, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Stocks Going Ex Dividend the Second Week of March


Here is our latest update on the stock trading technique called 'Buying Dividends'. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable Excel list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the market capitalization, the ex-dividend date and the yield.

Ameren Corporation (AEE) market cap: $6.5B ex div date: 3/7/2011 yield: 5.7%

H&R Block, Inc. (HRB) market cap: $4.5B ex div date: 3/8/2011 yield: 4.2%

MDU Resources Group, Inc. (MDU) market cap: $3.9B ex div date: 3/8/2011 yield: 3.1%

NL Industries, Inc. (NL) market cap: $681.8M ex div date: 3/8/2011 yield: 3.6%

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time article was written.

By Stockerblog.com

Wednesday, March 02, 2011

What Warren Buffett Thinks of Gold

With the news about gold and silver making new recent highs, it is interesting to hear what Berkshire Hathaway's (BRK-A) (BRK-B) Warren Buffett says about gold, farmland, and ExxonMobil (XOM).

Forbes $400 Off Offer

Forbes Limited Time Discount