Monday, June 2, 2014

Top 5 Defensive Stocks To Watch Right Now

LONDON -- Back in January, I was looking to name (and shame) the five worst stocks on the FTSE 100, when my eyes alighted on�GlaxoSmithKline� (LSE: GSK  ) (NYSE: GSK  ) . I fell on it with glee. And why not? Glaxo had been one of my most disappointing holdings. Yes, I was banking that famous dividend, but growth was in short supply. If Glaxo wasn't one of the worst stocks on the FTSE 100, it was certainly one of the most annoying, having done so little to justify its swollen reputation among investors. I was worried about its exposure to austerity-stricken Europe, and irritated by its arrogant decision to extend the amount of time it takes to pay suppliers from 60 days to 90 days. Most importantly, its share price had just dropped 10%. So much for its fabled defensive solidity. The drugs weren't working.

You heart Glaxo
Below the line, Glaxo's Foolish fans fought back. One user said Glaxo was cheap at the moment, and presented a good buying opportunity. Another claimed GSK has a future, with a decent dividend and a goodish drugs pipeline. Several noted it is one of Invesco-Perpetual dividend maestro�Neil Woodford's top stock picks. They were wise Fools, with hindsight. At the time, Glaxo traded at 13.75 pounds. Today, it stands at 16.85 pounds, around 23% more.

Top 5 Defensive Stocks To Watch Right Now: Burger King Worldwide Inc (BKW)

Burger King Worldwide, Inc., incorporated on April 2, 2012, is a fast food hamburger restaurant, under the Burger King brand. The Company generates revenues from three sources: franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchise restaurants and fees paid by franchisees; property income from properties that it leases or subleases to franchisees, and retail sales at Company restaurants. In September 2012, it sold 41 Company-owned BURGER KING restaurants in Singapore to Rancak Selera Sdn Bhd. As of December 31, 2012, it owned or franchised a total of 12,997 restaurants in 86 countries and United States territories. In April 2013, it announced the sale of Burger King Restaurants of Canada (BKRC), including 94 Company owned BURGER KING restaurants in the Canada market to Redberry Investments Corp.

The Company operates in the FFHR category of the quick service restaurant (QSR), segment of the restaurant industry. In the United States, the QSR segment is the segment of the restaurant industry and has demonstrated steady growth over a long period of time. The Company launched four new menu platforms (salads, wraps, smoothies and desserts) and expanded its chicken, coffee and ancillary menu platforms. It has established a data driven marketing process, which is focused on driving restaurant sales and traffic, while targeting a broader consumer base with more inclusive messaging to reach women, parties with children and seniors.

United States and Canada (U.S. and Canada)

As of December 31, 2012, the Company had 7,293 franchise restaurants and 183 Company restaurants in the U.S. and Canada. During the year ended December 31, 2012, the Company refranchised 752 restaurants in the U.S. and Canada, bringing the region to 98% franchised. During the year ended December 31, 2012, it also continued to implement its Four Pillars strategy to improve comparable sales growth and franchise profitability by enhancing its Menu, Marke! ting Communications, Image, and Operations.

Europe, the Middle East and Africa (EMEA)

As of December 31, 2012, the Company had 2,989 franchise restaurants and 132 Company restaurants in EMEA. While in Germany continues with 684 restaurants as of December 31, 2012, Turkey and Russia are two of its growing markets with net openings of 78 restaurants and 47 restaurants, respectively, during the year ended December 31, 2012.

Latin America and the Caribbean (LAC)

As of December 31, 2012, the Company had 1,290 franchise and 100 Company restaurants in LAC. In 2011, the Company entered into a joint venture agreement with Vinci Partners for Brazil and granted franchise and development rights to the joint venture. The Company received a minority stake and board seats in the joint venture without deploying its own capital.

Asia Pacific (APAC)

As of December 31, 2012, the Company had 1,007 franchise and 3 Company restaurants in APAC. As of December 31, 2012,the Company had 357 restaurants in Australia. It contributed 44 Company restaurants in China. In September 2012, the Company sold 38restaurants to Rancak Selera, the Burger King franchisee in Malaysia.

The Company competes with McDonald�� Corporation, Wendy�� Company, Carl�� Jr., Jack in the Box and Sonic.

Advisors' Opinion:
  • [By Nickey Friedman] We probably should have seen this coming. After all, for the last few months, Burger King Worldwide (ticker: BKW) has taken its royal crown back amid strategic moves aimed directly at dethroning its larger rival McDonald's (MCD) . The latest policy change from Burger King threatens a key McDonald's demographic as the Home of the Whopper ups the stakes.

  • [By Dividend Growth Investor]

    The company�� last dividend increase was in September 2012 when the Board of Directors approved a 10% increase to 77 cents/share. The company�� largest competitors include Yum Brands (YUM), Starbucks (SBUX) and Burger King (BKW).

  • [By Paul Ausick]

    McDonald’s, and other fast-food operators like Burger King Worldwide Inc. (NYSE: BKW) and Yum! Brands Inc. (NYSE: YUM), have been the target of protesters seeking higher wages. The employees organized strikes and demonstrations last summer, similar to the job actions that have taken place at Wal-Mart Stores Inc. (NYSE: WMT) over the two past Black Friday weekends.

  • [By WWW.DAILYFINANCE.COM]

    Andrew Harrer/Bloomberg/Getty Images Don't let the recent weakness at McDonald's (MCD) lead you to the conclusion that all burger flippers are struggling. It's just not true, and Burger King (BKW) proved that in its latest quarter. McDonald's longtime nemesis posted better than expected profitability during the first three months of the year, fueled by marginally positive comparable-restaurant sales for the period. It may not seem like much of a victory. Burger King's worldwide comps rose 2 percent, with its U.S. and Canada locations clocking in with a meager 0.1 percent increase. However, even that baby step up is better than the 1.7 percent decline at McDonald's. Unlike Ronald McDonald, Burger King isn't clowning around. The Whopper Beats the Big Mac? This would be an opportune time for Burger King to break away from the larger chain that it's been copying for years. We've seen Burger King offer up items that are blatantly similar to McCafe smoothies, Chicken McBites, Big Macs, Egg McMuffins, and even the cult fave McRibs. However, now that McDonald's is in a rut -- having posted three consecutive quarters of negative comparable-restaurant sales in this country -- it appears Burger King is ready to carve its own path. "We started off 2014 strong by generating comparable sales growth across all four regions during the first quarter," Burger King Worldwide CEO Daniel Schwartz explained in the fast food giant's earnings release. "Despite severe winter weather in the U.S. and Canada, our commitment to launching fewer, more impactful products and simplifying in-restaurant operations helped drive improved performance." If there's one thing in that statement that should stand out as a sharp contrast to the current strategy at McDonald's it's that Burger King is rolling out "fewer" products as it is "simplifying" operations. That's an entirely different strategy than the one being used by McDonald's, which seems to involve rolling out a lot of new menu ite

Top 5 Defensive Stocks To Watch Right Now: M&T Bank Corporation (MTB)

M&T Bank Corporation operates as the holding company for M&T Bank and M&T Bank, National Association that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. It offers business loans and leases; business credit cards; deposit products, such as demand, savings, and time accounts; and financial services, including cash management, payroll and direct deposit, merchant credit card, and letters of credit. The company also provides residential real estate loans; multifamily commercial real estate loans; commercial real estate loans; one-to-four family residential mortgage loans; investment and trading securities; short-term and long-term borrowed funds; brokered certificates of deposit and interest rate swap agreements related thereto; and branch deposits. In addition, it offers foreign exchange, as well as asset management services. Further, the company provides consumer loans, and commercial loans and leases; cred it life, and accident and health reinsurance; and securities brokerage, investment advisory, and insurance agency services. As of December 31, 2009, it had 738 banking offices in New York State, Pennsylvania, Maryland, Delaware, New Jersey, Virginia, West Virginia, and the District of Columbia; a commercial banking office in Ontario, Canada; and an office in George Town, Cayman Islands. The company was founded in 1969 and is headquartered in Buffalo, New York.

Advisors' Opinion:
  • [By Amanda Alix]

    Too little, too late?
    Whether the new regulations have arrived in time to prevent a bust in the commercial sector similar to the one seen with home mortgages remains to be seen. Some banks, at least, are recognizing the risks and staying away. As M&T Bank (NYSE: MTB  ) vice chair Mike Pinto tells the Financial Times, "Every 10 years or so, banks make some horrible mistake, and it usually starts with easy money." Hopefully, this time, such a calamity will be avoided.

  • [By Holly LaFon]

    M&T Bank (MTB)

    Warren Buffett has oft remarked of Berkshire's ownership of the jewelers Borsheim's Fine Jewelry, Helzberg Diamonds and Ben Bridge Jewelers, "...if you don't know jewelry, know the jeweler." The same could be applied to Buffett's views on banking and bankers. The list of Warren Buffett's favorite bankers - and it's a short list to be sure ��include the likes Jamie Diamond (J.P. Morgan Chase), Dick Kovacevich (Wells Fargo/Norwest) and Brian Moynihan (Bank of America). Of these three, Berkshire owns multi-billion stakes in both Wells Fargo ($20 billion) and Bank of America ($5 billion 6% preferred and 700 million warrants ��warrant strike price $7.14, current share price $14.) Berkshire also owns a $3 billion stake in U.S. Bancorp.

  • [By Jon C. Ogg]

    M&T Bank Corp. (NYSE: MTB) was downgraded to Neutral from Outperform by Credit Suisse.

    MannKind Corp. (NASDAQ: MNKD) was downgraded to Underperform from Neutral and the price target was slashed to $5 from $8 (versus $6.30 close) at BofA/Merrill Lynch; shares are trading down 6% or so.

Top 5 Rising Companies To Watch In Right Now: Galectin Therapeutics Inc (GALT)

Galectin Therapeutics Inc., formerly Pro-Pharmaceuticals, Inc., incorporated on January 26, 2001, is a development-stage company. The Company is engaged in drug development to create therapies for cancer and fibrotic disease. As of December 31, 2011, the Company has two compounds in development, one is to be used in cancer therapy and the other intended to be used in the treatment of liver fibrosis and fatty liver disease. These two compounds are produced from different natural starting materials, both possessing the property, which lends itself to binding to and inhibiting galectin proteins. GM-CT-01, the Company's product candidate for cancer therapy, is a linear polysaccharide polymer consisted of mannose and galactose that has a defined chemical structure and is derived from a plant source. GR-MD-02, the Company's product for treatment of liver fibrosis and fatty liver disease with inflammation and fibrosis, is a polysaccharide polymer possessing both linear and globular structures, which also is derived from a plant source.

GM-CT-01 has in development for the therapy of colorectal cancer and is in a Phase I/II clinical trial as a combination therapy with a tumor vaccine in patients with advanced melanoma. Based on the completed Phase I and partially completed Phase II clinical trials, the Company is exploring two additional potential indicia for the use of GM-CT-01 in combination with cancer chemotherapy. There are two additional pathways for the development of GM-CT-01 for use in treatment of cancer. GM-CT-01 was found to be generally safe when studied in a Phase I clinical trial in end-stage cancer patients with multiple tumor types alone and in combination with 5-Fluorouracil (5-FU), which is an Food and Drug Administration (FDA)-approved chemotherapy used for treatment of various types of cancer.

Advisors' Opinion:
  • [By Roberto Pedone]

     

    Galectin Therapeutics (GALT) offers drug research and development to create new therapies for fibrotic disease and cancer. This stock closed up 9.6% to $12.06 in Monday's trading session.

     

    Monday's Volume: 674,000

    Three-Month Average Volume: 222,171

    Volume % Change: 149%

     

    Shares of GALT jumped higher on Monday after Ascendiant initiated coverage on the stock with a buy recommendation.

     

     

    From a technical perspective, GALT spiked sharply higher here with strong upside volume. This stock has been uptrending for the last three months, with shares ripping higher from its low of $3.95 to its recent high of $13.21. During that move, shares of GALT have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GALT within range of triggering a near-term breakout trade. That trade will hit if GALT manages to take out Monday's high of $12.44 and then once it clears its 52-week high at $13.21 with high volume.

     

    Traders should now look for long-biased trades in GALT as long as it's trending above some near-term support levels at $11 or at $10 and then once it sustains a move or close above those breakout levels with volume that hits near or above 222,171 shares. If that breakout hits soon, then GALT will set up to enter new 52-week-high territory above $13.21, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $16.

     

Top 5 Defensive Stocks To Watch Right Now: Canadian Mining Co Inc (CNG)

Canadian Mining Company Inc. (Canadian Mining) is engaged in the evaluation, acquisition, exploration, development and operation of mineral properties in British Columbia, Arizona, the United States and Sonora, Mexico. The Company�� projects include Bullard Pass Property, and Raquel 3 Concession. During the fiscal year ended June 30, 2012 (fiscal 2012), the Company had interests in two mineral properties located in British Columbia: Sun Group and Bromley Creek. In British Columbia, the Company�� principal property interest is its Bromley Creek zeolite project, which consists of a total of one mineral lease and six mineral claims. The Company has contiguous claim, number 305975, located in the Similkameen Mining District of British Columbia. The total claim area includes 843.468 hectares. During fiscal 2012, Canadian Mining completed phase one of a drilling program in Bullard Pass Gold Property. Advisors' Opinion:
  • [By Tyler Laundon]

    It has a vision of building America's Natural Gas Highway. The project consists of a compressed natural gas (CNG) and liquefied natural gas (LNG) fuel-station network connecting 48 states.

Top 5 Defensive Stocks To Watch Right Now: Ambarella Inc (AMBA)

Ambarella, Inc., incorporated on January 15, 2004, is a developer of semiconductor processing solutions for video that enable high-definition (HD), video capture, sharing and display. The Company combine its processor design capabilities with its video and image processing, algorithms and software to provide a technology platform. It sells solutions into the camera and infrastructure markets, with approximately 27 million system-on-a-chips (SoCs) shipped since our inception. In the camera market, its solutions enable the creation of video content for wearable sports cameras, automotive aftermarket cameras, Internet Protocol (IP), security cameras, digital still cameras (DSCs), telepresence cameras, camcorders and pocket video cameras. In the infrastructure market, its solutions manage IP video traffic, broadcast encoding and IP video delivery applications. In 2012, the Company released its Wireless Camera Developers Kit. In 2012, it also launched S2 SoC, which enables Ultra High-Definition IP security cameras.

The Company sells its solutions to original design manufacturers (ODMs), and original equipment manufacturers (OEMs), globally. In the camera market, its video processing solutions are designed into products from OEMs, including Robert Bosch GmbH and affiliated entities, Samsung Electronics Co., Ltd. and Woodman Labs, Inc., doing business as (d/b/a) GoPro, or GoPro, who source its solutions from ODMs, including Ability Enterprise Co., Ltd., Asia Optical Co. Inc., Chicony Electronics Co., Ltd., DXG Technology Corp., Hon Hai Precision Industry Co., Ltd. and Sky Light Digital Ltd. In the infrastructure market, its solutions are designed into products from OEMs, including Harmonic Inc., Motorola Mobility, Inc. (owned by Google, Inc.) and Telefonaktiebolaget LM Ericsson, who source its solutions from ODMs, such as Plexus Corp.

AmbaClear

The Company�� image signal processing architecture, known as AmbaClear, incorporates advanced algorithms to convert raw senso! r data to high-resolution still and high-definition video images concurrently. Image processing algorithms include sensor, lens and color correction, demosaicing, which is a process used to reconstruct a full color image from incomplete color samples, noise filtering, detail enhancement and image format conversion.

AmbaCast

The Company�� HD video processing architecture, known as AmbaCast, incorporates advanced algorithms for motion estimation, motion-compensated temporal filtering, mode decision and rate control. It supports all three compression profilesbaseline, main and highas specified in the H.264 standard. Its solutions for the broadcast infrastructure market allow OEMs to offer both the H.264 and MPEG-2 encoding formats.

Design Methodology

The Company test and verify its algorithms on its architectural model prior to implementing algorithms in hardware. Its advanced verification methodology validates its approach through simultaneous modeling of architecture, algorithms and the hardware itself.

SoC Solution

The Company�� SoC designs integrate HD video processing, image processing, applications processing and system functions onto a single chip, delivering video and image quality with features, including advanced wireless connectivity. In addition, its SoCs integrate mixed signal (analog/digital) functionality and high speed interfaces required for interfacing to advanced high-speed CMOS sensors and industry standard interfaces, such as USB 2.0 and HDMI 1.4. Its A7L SoC, which it introduced in September 2011, is fabricated in edge 32 nanometer (nm) process technology and integrates AmbaClear and AmbaCast technology.

Software Development Kit for Connectivity

The Company�� video streaming technology enables the camera�� image to be previewed on a smartphone. To enable this functionality, end customers deploy its Wireless Camera Developer�� Kit, or the Kit, which enables the design of ca! meras tha! t combine still photography and Full HD video with wireless video streaming to smartphones. The Kit is available for its A7L SoC product family, providing full 1080p60 HD video with photography and low power consumption.

The Company competes with CSR Plc, Fujitsu Limited, HiSilicon Technologies Co., Ltd., Texas Instruments Incorporated, Canon Inc., Panasonic Corporation, Sony Corporation, Novatek Microelectronics Corp., Sunplus Technology Co. Ltd., Intel Corporation, Magnum Semiconductor, Inc., Texas Instruments Incorporated, Broadcom Corporation, NVIDIA Corporation, Qualcomm Incorporated and Samsung.

Advisors' Opinion:
  • [By Michael A. Robinson]

    Take a look at Ambarella Inc. (Nasdaq: AMBA), a fast-moving, small-cap firm that is focused on the rapidly emerging market for ultra-high-definition televisions (UHDTV).

  • [By Rich Smith]

    Ambarella just crashed
    Following a Street.com report detailing insider selling at Ambarella (NASDAQ: AMBA  ) earlier this week, and a downgrade of the stock to hold by Needham & Co. earlier this morning, shares of the high-def "system-on-a-chip" semiconductor maker are plunging, down nearly 8% at last report. Should investors be worried?

  • [By MONEYMORNING]

    We're talking about the Santa Clara, Calif.-based Ambarella Inc. (Nasdaq: AMBA), whose video-chip technology is finding its way into security cameras, automotive cameras, and the "wearable" video cams the "extreme sports" crowd uses to record their often-breathtaking exploits.

  • [By Jake L'Ecuyer]

    Ambarella (NASDAQ: AMBA) was down, falling 9.59 percent to $32.19 after Needham downgraded the stock from Buy to Hold.

    Commodities
    In commodity news, oil traded down 0.85 percent to $92.87, while gold traded down 0.63 percent to $1,221.90.

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