If you owned stock in Tesla Motors (NASDAQ: TSLA ) going into this year, you've probably made a pretty penny. In fact, Tesla stock has gained more than 100% in the past month with the stock now trading around $90 a share. However, it could be a bumpy ride going forward. The electric-car maker's disruptive retail strategy is catching heat from state lawmakers and dealership associations that could prevent Tesla from selling its cars in certain states.
Road-blocking the future
North Carolina's Senate Commerce Committee unanimously approved a proposal last week for a law that, if passed, could cripple Tesla's chances of selling its zero-emissions vehicles in the state. The North Carolina Automobile Dealers Association, which supports the bill, argues that Tesla's direct sales model threatens the livelihood of the state's licensed auto dealers, according to Raleigh's News & Observer.
Top 10 Penny Stocks For 2014: Nicholas Financial Inc.(NICK)
Nicholas Financial, Inc., through its subsidiaries, operates as a specialized consumer finance company. The company engages in acquiring and servicing contracts for purchases of new and used automobiles and light trucks. It also makes direct loans and sells consumer-finance related products. In addition, the company engages in developing, marketing, supporting, and updating industry-specific computer application software for small businesses located primarily in the Southeast United States. As of April 5, 2011, it operated 56 branch locations in 14 Southeastern and Midwestern states. The company was founded in 1986 and is headquartered in Clearwater, Florida.
Top 10 Penny Stocks For 2014: Gentiva Health Services Inc.(GTIV)
Gentiva Health Services, Inc. provides home health services and hospice care in the United States. The company offers skilled nursing and therapy services, paraprofessional nursing services, and homemaker services primarily to adult and elderly patients through licensed and Medicare-certified agencies. It also provides its services through specialty programs comprising Gentiva Orthopedics, which offers individualized home orthopedic rehabilitation services to patients recovering from joint replacement or other major orthopedic surgery; Gentiva Safe Strides that provides therapies for patients with balance issues; and Gentiva Cardiopulmonary, which helps patients and their physicians manage heart and lung health in a home-based environment. In addition, the company offers services through Gentiva Neurorehabilitation, which helps patients who have experienced a neurological injury or condition by removing the obstacles to healing in the patient?s home; Gentiva Senior Health that addresses the needs of patients with age-related diseases and issues; and Rehab Without Walls unit, which provides neurorehabilitation therapies for patients with traumatic brain injury, cerebrovascular accident injury, and acquired brain injury. Further, it offers consulting services to home health agencies, which include operational support, billing and collection activities, and on-site agency support and consulting. Additionally, the company provides hospice services primarily in the patient?s home or other residence, such as an assisted living residence or nursing home, as well as in a hospital. Gentiva Health Services, Inc. was founded in 1999 and is headquartered in Atlanta, Georgia.
Best Tech Companies To Watch In Right Now: HopFed Bancorp Inc.(HFBC)
HopFed Bancorp, Inc. operates as the holding company for Heritage Bank that provides various banking products and services primarily in western Kentucky, and middle and western Tennessee. The company offers a range of deposit products, including demand deposits, time deposits, money market accounts, passbook savings accounts, individual retirement accounts, and certificates of deposit. Its loan portfolio comprises one-to-four family residential loans, multifamily residential loans, construction loans, nonresidential loans, commercial real estate loans, and land and land development loans, as well as loans secured by deposits, other consumer loans, and commercial loans. The company, through its subsidiary, Fall and Fall Insurance Agency, sells life and casualty insurance products to individuals and businesses. HopFed Bancorp offers its products and services through its branch offices located in Hopkinsville, Murray, Cadiz, Elkton, Fulton, Calvert City, and Benton, Kentucky; and in Clarksville, Pleasant View, Ashland City, Kingston Springs, and Erin, Tennessee. The company was founded in 1879 and is headquartered in Hopkinsville, Kentucky.
Top 10 Penny Stocks For 2014: Integrated Silicon Solution Inc.(ISSI)
Integrated Silicon Solution, Inc., a fabless semiconductor company, designs and markets integrated circuits for digital consumer electronics, networking and telecommunications, mobile communications, automotive electronics, and industrial markets. Its primary products include low and medium density DRAM; and high speed and low power SRAM. The company?s low and medium density DRAM products are used in wireless local area networks (WLANs), base stations, networking switches and routers, fiber to the home (FTTH), DSL and cable modems, set top boxes, digital cameras, MP3, flat panel TVs, LCD TVs, HDTVs, video phones, Voice over Internet Protocol, printers, disk drives, tape drives, audio/video equipment, instrumentation, global positioning systems (GPS), telematics, infotainment, smart meters, and other applications. Its SRAM products are used in WLANs, cell phones, base stations, networking switches and routers, FTTH, DSL modems, LCD TVs, set-top boxes, GPS systems, instrumen tation, engine control systems, medical equipment, telematics, audio and video equipment, satellite radio, POS terminals, fax machines, copiers, tape drives, and other applications. Integrated Silicon Solution, Inc. also designs and markets application specific standard products, including high performance serial EEPROMs for use in TVs, networking systems, modems, telephone sets, security systems, video games, automobiles, and other consumer products; and SmartCards that have applications in transportation passes, payment cards, health care cards, and other cards that store secure data. The company markets and sells its products in Asia, the United States, and Europe through direct sales force, independent sales representatives, and distributors. Integrated Silicon Solution, Inc. was founded in 1988 and is headquartered in San Jose, California.
Advisors' Opinion:- [By Arohan]
ISSI is another memory chip designer and marketer. It is a fabless semiconductor company so it outsources its manufacturing. The market currently values the company at $283 million ascribing a PE ratio of 4.75. The company has delivered an EPS growth of 39% in the last 5 years and its future outlook appears to be of modest growth as well, with a slight decline in the up coming year. The company has $88 million in cash and no debt and is well positioned to handle the slowdown in demand next year.
Top 10 Penny Stocks For 2014: UMH Properties Inc.(UMH)
UMH Properties, Inc. (UMH) is a real estate investment trust. The firm engages in the ownership and operation of manufactured home communities. It leases manufactured home spaces to private manufactured home owners, as well as leases homes to residents. The firm invests in the real estate markets of New York, New Jersey, Pennsylvania, Ohio, and Tennessee. In addition, it invests in debt and equity securities of REITs. United Mobile Homes was incorporated in 1968. The company was formerly known as United Mobile Homes, Inc. UMH Properties is based in Freehold, New Jersey.
Top 10 Penny Stocks For 2014: China Yida Holding Co.(CNYD)
China Yida Holding, Co. operates as a diversified entertainment company in the People?s Republic of China. The company operates in two segments, Advertisement and Tourism. Its Advertisement segment operates and manages the Fujian Education Television Channel, a television channel in Fujian; and an outdoor on-train programming, including the Journey through China on the Train programming on China?s railway networks. This segment manages the content and re-sells airtime to advertisers and agencies for the television channel, and produces the content for outdoor on-train programming. The Tourism segment develops, operates, manages, and markets tourist destinations comprising natural, cultural, and historical tourist destinations and theme parks. This segment also creates/designs and constructs tourist concepts, attractions, and properties for its tourist destinations. This segment operates the Great Golden Lake tourist destination, Yunding Recreational Park tourist destinatio n, and Hua?An Tulou cluster tourist destination. The company is headquartered in Fuzhou City, the People's Republic of China.
Top 10 Penny Stocks For 2014: LJ International Inc.(JADE)
LJ International Inc., together with its subsidiaries, engages in the design, manufacture, marketing, and sale of precious and color gemstones, and diamond jewelry. The company offers colored jewelry; and pieces set in yellow gold, white gold, or sterling silver, as well as adorned with colored stones, diamonds, pearls, and precious stones. Its product line includes earrings, necklaces, pendants, rings, and bracelets. The company distributes its products to fine jewelers, national jewelry chains, department stores, TV shopping channels, discount chain stores, and electronic and specialty retailers in North America and Western Europe. It also involves in the retail of jewelry products under the ENZO brand. As of December 31, 2010, the company operated 133 ENZO stores in the People's Republic of China, Hong Kong, and Macau. In addition, it owns commercial and residential properties in Hong Kong, which are held primarily for lease. The company was founded in 1987 and is based in Hung Hom, Hong Kong.
Top 10 Penny Stocks For 2014: Aerosonic Corporation(AIM)
Aerosonic Corporation, together with its subsidiaries, engages in the design, manufacture, and sale of aircraft instruments worldwide. It offers mechanical and digital altimeters, airspeed indicators, rate of climb indicators, microprocessor controlled air data test sets, and other flight instruments. The company also produces mechanical and electro-mechanical cockpit instruments, angle of attack stall warning systems, digital cockpit instruments, integrated flight display systems, aircraft sensors and monitoring systems, and integrated multifunction probes, such as integrated air data sensors. It markets its products to manufacturers of corporate and private jets, contractors of military jets, the United States government, and private aircraft owners. The company sells its products directly through its sales personnel, as well as through distributors and commissioned sales representatives who resell to aircraft operators. Aerosonic Corporation was founded in 1953 and is b ased in Clearwater, Florida.
Top 10 Penny Stocks For 2014: National American University Holdings Inc.(NAUH)
National American University Holdings, Inc., through its subsidiary, Dlorah, Inc., engages in the ownership and operation of National American University that provides post-secondary education services primarily to working adults and other non-traditional students in the United States. It provides associate?s, bachelor?s, and master?s degrees programs in business-related disciplines, such as accounting, applied management, and business administration, as well as information technology; and healthcare-related disciplines, such as nursing and healthcare management. The company also offers diploma programs consisting of a series of courses focused on a particular area of study, for students who seek to enhance their skills and knowledge in the areas of healthcare coding, practical nursing, therapeutic massage, and veterinary assisting. National American University Holdings offers its courses through educational sites, as well as online. As of May 31, 2010, the company had enr olled approximately 3,565 students in online programs, 3,742 students on-campus, and 1,451 students in hybrid learning centers. In addition, it manages apartment units, as well as develops and sells multi family residential real estate in the Rapid City, South Dakota area. The company was founded in 1941 and is headquartered in Rapid City, South Dakota.
Top 10 Penny Stocks For 2014: SORL Auto Parts Inc.(SORL)
SORL Auto Parts, Inc., through its principal operating subsidiary, Ruili Group Ruian Auto Parts Co., Ltd., engages in the development, manufacture, and distribution of automotive brake systems and other safety related auto parts for commercial vehicles, such as trucks and buses. The company, through its 90% ownership in Ruili Group Ruian Auto Parts Co., Ltd., a Sino-foreign joint venture, offers various products, including spring brake chamber, clutch servos, air dryers, relay valves, and hand brake valves. It also provides auto metering products, auto electric products, anti-lock brake systems, retarders, hydraulic brakes, and power steering products. SORL Auto Parts, Inc. markets its products under the SORL brand to automotive original equipment manufacturers and the related aftermarket customers in the People?s Republic of China and internationally. The company was founded in 2003 and is headquartered in Ruian City, the People?s Republic of China.
Advisors' Opinion:- [By Robert Hsu]
Sorl Auto Parts (NASDAQ: SORL) has purchased the assets of the hydraulic brake, power steering, and automotive electrical operations of Ruili Group Auto Parts. As a result of this acquisition, Sorl’s product offerings will expand to both commercial and passenger vehicles’ brake systems and other key safety-related auto parts. The company expects it will allow the company to streamline its management organization, as well as create efficiencies in production, R&D and its sales network. In addition, Sorl’s management expects the acquisition will be beneficial to the company’s revenues and earnings.
Sorl paid 170 million yuan — or about $25 million — for the acquisition, and the company believes it will generate about $35 million in revenues and about $4 million in net income in 2011. In addition, Sorl expects the acquisition to generate incremental free cash flow in both 2010 and 2011. SORL has outperformed earnings estimates for four consecutive quarters, and its stock price rose 71.7% over the past 12 months.
Now, the chairman and CEO of Sorl Auto, Xiao Ping Zhang, is also the controlling shareholder of the Ruili Group. However, the price paid for the acquisition was based on a valuation of the purchased business performed by Asia’s leading appraisal company, DTZ Debenham Tie Leung — lessening the possibility of a conflict of interest with regards to the sale.
Overall, I think this was a good purchase by Sorl. The acquisition will allow the company to offer its customers more high-quality products to fulfill their needs from one source. In addition, because both companies share similar visions, I expect the combination of their internal resources will create favorable economies-of-scale that will strengthen earnings and create shareholder value. Buy SORL under $10.
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