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 Actions Semiconductor (Nasdaq: ACTS ) .
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.
Best Value Stocks To Buy Right Now: Progress Energy Inc.(PGN)
Progress Energy, Inc., a utility holding company, engages in the generation, transmission, distribution, and sale of electricity in North Carolina, South Carolina, and Florida. It uses coal, oil, hydroelectric, natural gas, and nuclear power to generate electricity. The company also engages in various alternative energy projects to generate electricity from swine waste and other plant or animal sources, biomass, solar, hydrogen, and landfill-gas technologies. Progress Energy serves various industries, including chemicals, textiles, paper, food, metals, wood products, rubber and plastics, and stone products, as well as phosphate rock mining and processing, electronics design and manufacturing, and citrus and other food processing. It has approximately 22,000 megawatts of regulated electric generation capacity and serves approximately 3.1 million retail electric customers, as well as other load-serving entities. The company was formerly known as CP&L Energy, Inc. Progress En ergy, Inc. was founded in 1925 and is headquartered in Raleigh, North Carolina.
Advisors' Opinion:- [By Holly LaFon] ess Energy shares climbed over 2011 as the company announced in January it would merge with Duke Energy. Together, they will form the nation�� largest utility with a combined enterprise value of $65 billion and $37 billion in market cap. The new company will have 57 gigawatts of domestic generating capacity through a mix of coal, nuclear, natural gas, oil and renewable resources. Progress energy shareholders will receive an approximately 3 percent dividend increase.
Incidentally, development of a comprehensive energy policy was one of what Grantham called ��he most important and most dangerous issues��facing the world.
Progress is at the forefront of the push for nuclear energy in the U.S., which has been deemed the ��uclear renaissance.��Thirty-five percent of the electricity used by Progress Energy customers comes from one of their four nuclear sites, two in North Carolina, and one each in South Carolina and Florida. It plans to build another reactor in Levy County, Florida.
Revenue at Progress Energy has declined at a 2.6% annual rate over the past five years, and it achieved cash flow of $95 million in 2010, after three years of losses. Earnings have remained positive, reaching a record for the decade of $856 million in 2010.
RSC Holdings (RRR)
RSC is a machinery rental service for construction, industrial, petrochemical, governmental and manufacturing businesses in the U.S. and Canada. RSC tends to benefit in economic downturns, as more businesses turn to renting rather than buying equipment to cut costs. Rented equipment rose 20.7% percent (the sixth consecutive quarter of double-digit growth) and rental revenue increased 27% in the fourth quarter of 2011, compared to last year.
United Rentals (URI), one of RSC�� largest competitors, had a rental revenue increase of 18.5% in the fourth quarter compared to last year, which included a 6.7% increase in rental rates.
The company�� fleet utilization also
Top Prefered Stocks For 2014: Select Medical Holdings Corporation(SEM)
Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates specialty hospitals and outpatient rehabilitation clinics in the United States. The company?s Specialty Hospitals segment offers long term acute care hospital services and inpatient acute rehabilitative hospital care. This segment provides services for various medical conditions, such as respiratory failure, neuromuscular disorders, traumatic brain and spinal cord injuries, strokes, non-healing wounds, cardiac disorders, renal disorders, and cancer. As of December 31, 2011, it operated 110 long term acute care hospitals and 9 inpatient rehabilitation facilities in 28 states. The Outpatient Rehabilitation segment operates clinics; and provides physical, occupational, and speech rehabilitation services. It offers medical rehabilitation services on a contract basis at nursing homes, hospitals, assisted living and senior care centers, schools, and worksites. This segment also pro vides specialized programs, such as functional programs for work related injuries, hand therapy, and athletic training services. As of December 31, 2011, it operated 954 outpatient rehabilitation clinics in 32 states and the District of Columbia. Select Medical Holdings Corporation was founded in 1996 and is headquartered in Mechanicsburg, Pennsylvania.
Advisors' Opinion:- [By Rich Duprey]
Specialty hospitals and outpatient rehabilitation clinic operator�Select Medical� (NYSE: SEM ) �announced yesterday that it had successfully completed the�private placement of�$600 million�worth of its 6.375% senior notes due in 2021.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Select Medical Holdings (NYSE: SEM ) , whose recent revenue and earnings are plotted below. - [By Ben Levisohn]
Overvalued companies include MWI Veterinary (MWIV) and�Stericycle (SRCL), while companies with attractive valuations include Cardinal Health (CAH), Selected Medical (SEM). He’s not a fan of Intrexon (XON) but calls�Aratana (PETX) a “hidden gem.”
- [By Jonas Elmerraji]
2013 has been a pretty poor year for shareholders of Select Medical Holdings (SEM). Shares of the billion-dollar health care facilities stock have fallen around 10% since the calendar flipped over to January. That means that SEM is underperforming the S&P 500 by more than 36% year-to-date. But investors could be in store for a reprieve thanks to the bullish setup that's been forming in shares.
SEM is currently forming an ascending triangle bottom, a bullish setup that's formed by a horizontal resistance level above shares at $9 and uptrending support to the downside. Basically, as shares of Select bounce in between those two technically-important levels, they're getting squeezed closer and closer to a breakout above our $9 price ceiling. When that happens, we've got a buy signal in shares.
Select Medical broke its downtrend back in the summer, but $9 has held firm as resistance ever since. One potential early indicator of a breakout is going to be momentum: 14-day RSI has hit its head on 70 the last couple times SEM hit its head on $9. A breakout above 70 on the momentum gauge is likely to lead the price breakout.
Top Prefered Stocks For 2014: Fluidigm Corporation(FLDM)
Fluidigm Corporation engages in the development, manufacture, and marketing of microfluidic systems for growth markets in the life science and agricultural biotechnology (Ag-Bio) industries. The company?s proprietary microfluidic systems consist of instruments and consumables, including chips (integrated fluidic circuits) and reagents. Its technology enables customers to perform and measure various biochemical reactions on samples smaller than the content of a single cell by utilizing minute volumes of reagents and samples; and rapid preparation of multiple samples in parallel for next generation DNA sequencing. The company?s products include the BioMark HD system, which performs high-throughput gene expression analysis using real-time and end point PCR, SNP genotyping, single-cell analysis, and digital PCR using TaqMan, EvaGreen dye, and other chemistries; The EP1 System that performs end point PCR and is commonly used in production settings for Ag-Bio, digital PCR, and copy number variation experiments using TaqMan, EvaGreen dye, and other chemistries; and the Access Array system that enables automated sample preparation and tagging for next generation DNA sequencers. The company serves pharmaceutical and biotechnology companies, academic institutions, diagnostic laboratories, and Ag-Bio companies. Fluidigm Corporation distributes its instruments and supplies through direct field sales and support organizations in North America, Europe, and Japan; and through distributors or sales agents in parts of Europe, Latin America, the Middle East, and the Asia-Pacific region. The company was formerly known as Mycometrix Corporation and changed its name to Fluidigm Corporation in April 2001. Fluidigm Corporation was founded in 1999 and is headquartered in South San Francisco, California.
Advisors' Opinion:- [By Roberto Pedone]
Fluidigm (FLDM) develops, manufactures and markets microfluidic systems for growth markets, such as single-cell genomics, applied genotyping and sample preparation for targeted sequencing and agricultural biotechnology industries. This stock closed up 9.8% at $19.55 in Friday's trading session.
Friday's Volume: 430,000
Three-Month Average Volume: 96,902
Volume % Change: 375%From a technical perspective, FLDM gapped up sharply here and broke out above some near-term overhead resistance at $18.54 with heavy upside volume. This move also pushed shares of FLDM into new 52-week-high territory, since the stock took out $19.96 before closing at $19.55. Shares of FLDM are now trending within range of triggering a major breakout trade. That trade will hit if FLDM manages to take out Friday's high of $20.04 and then once it clears its all-time high of $20.20 with high volume.
Traders should now look for long-biased trades in FLDM as long as it's trending above Friday's low of $18.52 and then once it sustains a move or close above those breakout levels with volume that's near or above 96,902 shares. If that breakout triggers soon, then FLDM will set up to enter new 52-week- and all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $30.
- [By Sean Williams]
What: Shares of Fluidigm (NASDAQ: FLDM ) , a manufacturer of microfluidic systems for the biotech, pharmaceutical, and academic research sectors, shot higher by as much as 14% after reporting its first-quarter-earnings results.
Top Prefered Stocks For 2014: Ecolab Inc (ECL)
Ecolab Inc. (Ecolab), incorporated in 1924, develops and markets products and services for the hospitality, foodservice, healthcare and industrial markets. The Company provides cleaning and sanitizing products and programs, as well as pest elimination, equipment maintenance and repair services primarily to customers in the foodservice, food and beverage processing, hospitality, healthcare, government and education, retail, textile care, commercial facilities management and vehicle wash sectors. The Company business segments include United States Cleaning & Sanitizing segment, United States Other Services segment, International segment, Water Services segment, Paper Services segment and Energy Services segment. In April 2013, it acquired Champion Technologies and its related company Corsicana Technologies. In August 2013, Ecolab Inc. sold all the capital equipment design and build business of its Mobotec air emissions control business to The Power Industrial Group.
In March 2011, the Company purchased the assets of O.R. Solutions, Inc. In December 2011, it merged with Nalco Holding Company. In December 2011, the Company acquired Esoform. In December 2011, the Company acquired the InsetCenter pest elimination business in Brazil. In March 2012, it acquired Econ Industria e Comercio de Produtos de Higiene e Limpeza Ltda. On December 1, 2012, the Company's Vehicle Care division was purchased by a wholly owned subsidiary of Zep Inc.
United States Cleaning & Sanitizing Segment
The United States Cleaning & Sanitizing segment consists of six business units, which provide cleaning and sanitizing products and programs to United States markets. The Institutional Division sells specialized cleaners and sanitizers for washing dishes, glassware, flatware, foodservice utensils and kitchen equipment (warewashing), for on-premise laundries (typically used by hotel and healthcare customers) and for general housekeeping functions, as well as food safety products and equipment, dish! washer racks and related kitchen sundries to the foodservice, lodging, educational and healthcare industries. The Institutional Division also provides pool and spa treatment programs for hospitality and other commercial customers, as well as a range of janitorial cleaning and floor care products and programs to customers in hospitality, health care and commercial facilities. The Institutional Division develops and markets various chemical dispensing device systems, which are made available to customers, to dispense its cleaners and sanitizers. In addition, the Institutional Division markets a lease program consisted of dishwashing machines, detergents, rinse additives and sanitizers, including full machine maintenance.
The Food & Beverage division addresses cleaning and sanitation at the beginning of the food chain to facilitate the processing of products for human consumption. The Division provides detergents, cleaners, sanitizers, lubricants and animal health products, as well as cleaning systems, electronic dispensers and chemical injectors for the application of chemical products, primarily to dairy plants, dairy farms, breweries, soft-drink bottling plants, and meat, poultry and other food processors. The Food & Beverage Division is also a developer and marketer of antimicrobial products used in direct contact with meat, poultry, seafood and produce during processing in order to reduce microbial contamination. The Food & Beverage Division also designs, engineers and installs clean-in-place (CIP) process control systems and facility cleaning systems for its customer base.
Ecolab�� Kay business unit supplies cleaning and sanitizing chemical products and related items primarily to regional, national and international quick service restaurant (QSR) chains and to regional and national food retailers (supermarkets and grocery stores). Its products include specialty and general purpose hard surface cleaners, degreasers, sanitizers, polishes, hand care products and assorted clea! ning tool! s and equipment, which are primarily sold under the Kay and Ecolab brand names. Kay supports its product sales with employee training programs and technical support designed to meet the needs of its customers.
Both Kay�� QSR business and its food retail business utilize a corporate account sales force, which establishes relationships and negotiates contracts with customers at the corporate headquarters and regional office levels and a field sales force, which provides program support at the individual restaurant or store level. Customers in the QSR market segment are primarily supplied through third-party distributors. The Healthcare Division provides infection prevention and other healthcare related offerings to acute care hospitals, surgery centers, dental offices and veterinary clinics. The Healthcare Division�� infection prevention products (hand hygiene, hard surface disinfectants, instrument cleaners, patient drapes, fluid control and equipment drapes) are sold primarily under the Ecolab and Microtek brand names to various departments within the acute care environment (Infection Control, Environmental Services, Central Sterile and Operating Room).
The Textile Care Division provides chemical laundry products and dispensing systems, as well as related programs, to large industrial and commercial laundries. The Textile Care Division�� customers include free-standing laundry plants used by institutions, such as hotels, restaurants and healthcare facilities, as well as industrial and textile rental laundries. Products and programs include laundry cleaning and specialty products, related dispensing equipment, plus water and energy management. The Vehicle Care Division provides vehicle appearance products, which include soaps, polishes, sealants, wheel and tire treatments and air fresheners. Products are sold to vehicle rental, fleet and consumer car wash and detail operations. Brand names utilized by the Vehicle Care Division include Blue Coral, Black Magic and Rain-X.
United States Other Services Segment
The United States Other Services segment consists of two business units: Pest Elimination and Equipment Care. The Pest Elimination Division provides services designed to detect, eliminate and prevent pests, such as rodents and insects, in restaurants, food and beverage processors, educational and healthcare facilities, hotels, quick service restaurant and grocery operations and other institutional and commercial customers. Equipment Care Division provides equipment repair and maintenance services for the commercial food service industry. Repair services are offered for in-warranty repair, acting as the manufacturer�� authorized service agent, as well as after warranty repair. In addition, Equipment Care operates as a parts distributor to repair service companies and end use customers.
International Segment
The Company conducts business in approximately 74 countries outside of the United States through wholly owned subsidiaries or, in the case of Venezuela, through joint ventures with local partners. In other countries, selected products are sold by the Company�� export operations to distributors, agents or licensees. Its International operations are located in Europe, Asia Pacific, Latin America and Canada, with smaller operations in Africa and the Middle East.
Water Services and Paper Services Segments
The Water and Process Services business consist of two segments: Water Services, which focuses on customers across industrial and institutional markets, and Paper Services, serving the pulp and paper industries. It serve customers in the aerospace, chemical, pharmaceutical, mining and primary metals, power, food and beverage, medium and light manufacturing and pulp and papermaking industries as well as institutional clients such as hospitals, universities, commercial buildings and hotels. The Paper Services segment offers a portfolio of programs that are used in all principal steps of the papermak! ing proce! ss and across all grades of paper, including graphic grades, board and packaging, and tissue and towel.
It provides water treatment capabilities to a range of industries. The water treatment applications include cooling water applications, boiler water applications, raw water/potable water preparation, wastewater applications and water reuse and recycling. Its cooling water treatment programs are designed to control the main problems associated with cooling water systems, such as corrosion, scale and microbial fouling and contamination in open recirculating, once-through and closed systems. Its three dimensional (3D) TRASAR technology for cooling water is automated system for simultaneous control of corrosion, scale and microbial fouling and contamination. It also provides pulp and papermaking applications.
Energy Services Segment
The Energy Services Division provides on-site, technology-driven solutions to the global drilling, oil and gas production, refining, and petrochemical industries. In addition to recovery, production and process enhancements, it delivers a range of water treatment offerings to refineries and petrochemical plants. The Energy Services Division is divided into an Upstream group composed of its Adomite, Oil Field Chemicals and Enhanced Oil Recovery businesses and a Downstream refinery and petrochemical processing service business.
The Adomite group offers a range of product solutions. It supplies chemicals for the cementing, drilling, fracturing and acidizing phases of well drilling and stimulation. The Oilfield Chemicals business provides solutions to the oil and gas production sector. It focuses in crude oil and natural gas production, pipeline gathering/transmission systems, gas processing, and heavy oil and bitumen upgrading. TIORCO business globally markets custom-engineered chemical solutions. Its services include reservoir screening, target validation, laboratory and reservoir simulation work, secondary flood optimization! , tertiar! y recovery flood design and implementation and when needed, a produced water treatment solution. It provide total water management solutions to customers��refining and chemical processing needs, including boiler treatment, cooling water treatment and wastewater treatment.
Advisors' Opinion:- [By Doug Ehrman]
While most of us take water pretty much for granted, cleaning it and making it safe is big business that could spell significant profits for investors. Ecolab (NYSE: ECL ) , the world's largest provider of services and chemicals used in water treatment, recently announced its plans to expand across the globe. Similarly, despite the depressed prices we have seen for rare earth materials, Molycorp (NYSE: MCP ) is finding a measure of success in water treatment.
Top Prefered Stocks For 2014: Core Laboratories N.V. (CLB)
Core Laboratories N.V. engages in the provision of reservoir description, production enhancement, and reservoir management services to the oil and gas industry worldwide. The company�s reservoir description services comprise the characterization of petroleum reservoir rock, fluid, and gas samples; and provision of analytical and field services to characterize properties of crude oil and petroleum products. Its production enhancement products and services relate to reservoir well completions, perforations, stimulations, and production, as well as include integrated services to evaluate the effectiveness of well completions and to develop solutions to increase the effectiveness of enhanced oil recovery projects. The company�s reservoir management services consist of the combination and integration of information from reservoir description and production enhancement services to increase production and enhance recovery of oil and gas from clients' reservoirs. Core Laboratori es N.V. markets and sells its services and products through sales representatives, technical seminars, trade shows, and print advertising, as well as through direct sales force, technical experts, operating managers, sales representatives, and distributors in various markets. The company was founded in 1936 and is based in Amsterdam, the Netherlands.
Advisors' Opinion:- [By Louis Navellier]
Core Labs NV (CLB) is an example of the type of company that is likely to lead any market rallies in Europe this year. The company is in the business of providing reservoir description, production enhancement, and reservoir management services to the oil and gas industry worldwide. This may sound complicated, but it simply means helping oil companies to enhance production and gain increased amounts of oil and gas from drilling locations.
- [By Tyler Crowe]
That's where Core Laboratories (NYSE: CLB ) comes into play. The company provides a wide array of services designed to increase recovery rates, optimize hydraulic fracturing techniques, and help target the most lucrative areas of a reservoir. The company is currently working with operators in the Gulf of Mexico to increase ultimate recovery rates from the single digits to 20% through new, enhanced oil recovery techniques that could prove incredibly valuable in all of the golden triangle regions.�
- [By Tyler Crowe]
Potential market slowdown?
U.S. production has had a pretty good run over the past 18 months, but there may be some signals that the run could end. Brent crude prices are below $100 for the first time in almost a year, and WTI, the American benchmark, is below $90. Core Laborotories (NYSE: CLB ) CEO David Demshur recently stated that his company expects a large pullback in U.S. oil exploration if U.S. crude prices were to remain below $90 for a sustained amount of time. Core believes that the rate of return on plays that are outside the sweet spot of the best plays in the U.S. is just not worth it if prices remain that low. If this prediction were to come true, this could deal another blow to Nabors. A slowdown in production would be seen in companies such as Nabors before almost any other part of the oil industry.�
Top Prefered Stocks For 2014: Redpoint Bio Corp (RPBC)
Redpoint Bio Corporation (Redpoint), incorporated in August 1995, is a development-stage biotechnology company. The Company leverages discoveries in the molecular biology of taste to discover and develop taste modulators for the food and beverage industries. Its food and beverage program has been focused on identifying flavor modifiers that improve the taste of ingredients. In June 2009, the Company announced that it had identified an all-natural sweetness enhancer, RP44. RP44 is Reb-C (rebaudioside C), a component of the stevia plant.
Sweetness Enhancer Program
Redpoint announced that it had identified RP44, an all-natural sweetness enhancer, in June 2009. In January 2010, it disclosed that RP44 is Reb-C (rebaudioside C), a component of the stevia plant. RP44 is derived from material found in the side stream of the Reb A production process. A purified component of stevia known as Reb A has received regulatory approval in the United States. Unlike Reb A, RP44 has a low intrinsic level of sweetness and therefore is not useful as a sweetener.
Diabetes and Obesity Drug Discovery Program
The Company�� initial programs focused on the modulation of the TRPm5 ion channel, a signaling element in taste sensation, in order to discover compounds that modulate the taste of food and beverage products. Redpoint initiated a program designed to leverage the research it had already conducted on the discovery of modulators of the TRPm5 ion channel to further explore opportunities for the discovery of diabetes or obesity therapeutics. TRPm5 modulators discovered at Redpoint have been shown to elicit the secretion of hormones known to play roles in metabolism in relevant model systems.
The Company competes with International Flavors & Fragrances Inc., Givaudan SA, Symrise, Firmenich, Senomyx, PureCircle Ltd, GLG Life Tech Corporation, Eli Lilly and Company, Amylin Pharmaceuticals, Merck & Co., Inc., Metabolex, Inc., OSI Pharmaceuticals, GlaxoSmithKline! , Arena Pharmaceuticals, Inc. and Johnson & Johnson.
Advisors' Opinion:- [By Peter Graham]
Small cap stocks Greenfield Farms Food Inc (OTCMKTS: GRAS), International Stem Cell Corp (OTCMKTS: ISCO) and Redpoint Bio Corporation (OTCMKTS: RPBC) have all been getting some extra attention lately in various investment newsletters. However, none of these small cap stocks appear to have been the subject or paid promotions or investor relations activities. So does that make any of them good bets for traders and investors alike? Here is a quick look and a reality check:
Top Prefered Stocks For 2014: LCA-Vision Inc.(LCAV)
LCA-Vision Inc. provides fixed-site laser vision correction services through its LasikPlus vision centers. Its vision centers offer laser vision correction services for correcting nearsightedness, farsightedness, and astigmatism. As of December 31, 2011, the company operated 53 LasikPlus fixed-site laser vision correction centers located in metropolitan markets in the United States. LCA-Vision Inc. was founded in 1985 and is headquartered in Cincinnati, Ohio.
Advisors' Opinion:- [By Roberto Pedone]
LCA-Vision (LCAV) provides fixed-site laser vision correction services through its LasikPlus vision centers. This stock closed up 4.4% to $4 in Tuesday's trading session.
Tuesday's Range: $3.85-$4.04
52-Week Range: $2.67-$4.60
Tuesday's Volume: 162,000
Three-Month Average Volume: 47,256From a technical perspective, LCAV bounced sharply higher here right above some near-term support levels at $3.75 to $372 with above-average volume. This move is quickly pushing shares of LCAV within range of triggering a major breakout trade. That trade will hit if LCAV manages to take out some near-term overhead resistance levels at $4.04 to $4.26 and then once it takes out its 52-week high at $4.60 with high volume.
Traders should now look for long-biased trades in LCAV as long as it's trending above some key near-term support levels at $3.75 to $3.72 and then once it sustains a move or close above those breakout levels with volume that hits near or above 47,256 shares. If that breakout hits soon, then LCAV will set up to re-test or possibly take out its next major overhead resistance levels at $6.19 to $7.
- [By Lisa Levin]
Medical Practitioners: This industry jumped 2.82% by 10:15 am. The top performer in this industry was LCA-Vision (NASDAQ: LCAV), which rose 2.9%. LCA-Vision's trailing-twelve-month revenue is $91.12 million.
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