ABB to Power Norwegian Transmission - Analyst Blog

Close on the heels of winning contracts in China, Iraq and Saudi Arabia, ABB Ltd. (ABB) has now won an order from the Norwegian Transmission System Operator, Statnett SF. ABB will be responsible for the construction of two 420 kilovolts (kV) transmission substations. ABB received the order during the second quarter and expects to complete the project by the second half of 2014.

The construction of these two substations is a part of the overall initiative undertaken by the Norwegian Transmission System Operator to expand and strengthen the nation's power grid. These substations are expected to increase the grid's capacity and enhance power reliability.

According to the contractual agreement, ABB will be required to design, supply, install and commission the substations. Additionally, ABB will supply circuit breakers, air-insulated switchgear as well as other high-voltage equipments.

ABB is the world's largest supplier of turnkey air-insulated, gas-insulated and hybrid substations with voltage as high as 1,100 kV. These substations are eco friendly and help in efficient and reliable transmission and distribution of electricity.

The construction of the two substations is a part of the Eastern Corridor Project, whereby Statnett SF is planning this upgrade to help in the development of renewable energy and power exchange with the continent. It will further boost industrial development. The two substations, Bamble and Grenland, will be constructed along the newly proposed 420 KV transmission line between Bamble and Rød in southern Norway.

Based in Zurich, Switzerland, ABB Ltd. is a power and automation technology company and currently has a Zacks Rank #3 (Hold). Some other players in the same industry, which can be considered for buying are Orion Marine Group, Inc. (ORN) and Willdan Group Inc. (WLDN), with a Zacks Rank #1 (Strong Buy). Another peer, Chicago Bridge & Iron (CBI) is also a good pick and it carries a! Zacks Rank #2 (Buy).

Astellas Launches Xtandi in the UK - Analyst Blog

Astellas Pharma, Inc. (ALPMY) recently announced the launch of its prostate cancer drug, Xtandi, in the UK.

Xtandi had gained EU approval in late Jun 2013 for the treatment of adult men with metastatic castration-resistant prostate cancer (CRPC) whose disease has progressed on or after Sanofi's (SNY) Taxotere (docetaxel) therapy. Approval was based on encouraging results from a randomized, placebo-controlled, multicenter, phase III study (AFFIRM) which evaluated the safety and efficacy of the drug versus placebo.

The study not only met the primary and secondary endpoints but Xtandi's safety profile was also found to be favorable. Xtandi was also approved in Japan and the US for the same indication in Jun 2013 and Aug 2012, respectively.

According to Cancer Research UK, prostate cancer is estimated to be the second most common cause of cancer death in men in the UK.

Medivation, Inc. (MDVN) entered into a deal with Astellas, for the development and commercialization of Xtandi, for the treatment of prostate cancer, in Oct 2009. While all US development and commercialization costs and profits will be shared equally, Astellas will be responsible for the ex-US development and commercialization of Xtandi.

Medivation is currently working on expanding Xtandi's label. A phase III study (PREVAIL) in chemotherapy-naïve advanced prostate cancer patients is currently ongoing with data read-outs expected later this year. Medivation is also exploring Xtandi for breast cancer (phase II). Xtandi delivered net sales of $75.4 million in the first quarter of 2013, $18 million above the last quarter of 2012.

Astellas carries a Zacks Rank #4 (Sell) while Medivation carries a Zacks Rank #3 (Hold). Right now, Jazz Pharmaceuticals (JAZZ) looks well positioned with a Zacks Rank #1 (Strong Buy).

Top Biotech Stocks To Invest In 2014

With March Madness in full swing, we decided to stick with what we know here at The Motley Fool, trading our basketball picks in for stock picks. We formed our own bracket filled with the top Big Pharma and Big Biotech stocks in a winner take-all tournament as determined by the collective intelligence of our CAPS community.

This Final Four matchup is a heavyweight bout between Celgene�and�Johnson & Johnson. Watch and find out what J&J and embattled Rutgers University have in common and whether Celgene's style of play is enough to advance to the championship round.

Can Celgene continue to soar?
Every in-the-know biotech investor has an eye on Celgene. Shares have skyrocketed this year as the company outlined a plan to almost triple its profits in only a few years. But should you buy the story Celgene is selling? Make sure you understand the key opportunities and risks facing this company by picking up The Motley Fool's brand-new premium report on Celgene. To claim your copy today, simply click here now.

Top Biotech Stocks To Invest In 2014: France Telecom S.A.(FTE)

France Telecom provides fixed telephony and mobile telecommunications, data transmission, Internet and multimedia, and other value-added services to consumers, businesses, and telecommunications operators. It also offers personal and home communication services, business network services, international carriers and shared services, and integration and outsourcing services for communication applications. The company operates in France, Spain, Poland, the United Kingdom, and internationally. France Telecom was founded in 1990 and is based in Paris, France.

Advisors' Opinion:

• [By Chuck Carlson]

  France Telecom (NYSE:FTE): Up 1.03% to $15.68. France Telecom SA provides telecommunications services to residential, professional, and large business customers. The Company offers public fixed-line telephone, leased lines and data transmission, mobile telecommunications, cable television, Internet and wireless applications, and broadcasting services, and telecommunications equipment sales and rentals.

Top Biotech Stocks To Invest In 2014: CF Industries Holdings Inc. (CF)

CF Industries Holdings, Inc., through its subsidiary, CF Industries, Inc., manufactures and distributes nitrogen and phosphate fertilizer products, serving agricultural and industrial customers worldwide. It operates in two segments, Nitrogen and Phosphate. The Nitrogen segment principally offers ammonia, granular urea, urea ammonium nitrate solution, urea liquor, diesel exhaust fluid, and aqua ammonia. The Phosphate segment primarily offers diammonium phosphate and monoammonium phosphate. The company also owns 50% interests in the GrowHow UK Limited, a nitrogen products producer in the United Kingdom; Point Lisas Nitrogen Limited, an ammonia producer; and KEYTRADE AG, a global fertilizer trading company. CF Industries Holdings� customers include cooperatives and independent fertilizer distributors primarily in the midwestern United States. The company was founded in 1946 and is headquartered in Deerfield, Illinois.

Advisors' Opinion:

• [By Roberto Pedone]

  CF Industries (CF) is a manufacturer and distributor of nitrogen and phosphate fertilizer products in North America. This stock closed up 11.7% at $202.32 in Monday's trading session.

  Monday's Volume: 5.65 million
  
  Three-Month Average Volume: 899,814
  
  Volume % Change: 484%

  Shares of CF soared higher on Monday after billionaire Dan Loeb's Third Point Management revealed a position in the firm in its quarterly investment letter. Loeb told investors the company trades at an unwarranted discount to its peers and that it expects management to deliver a much larger dividend to shareholders.

  From a technical perspective, CF soared higher here back above both its 50-day at $184.76 and its 200-day at $198.52 with monster upside volume. This move pushed shares of CF into breakout territory, since the stock took out some key overhead resistance levels at $187.60 to $191.52 and then above $196.25 to $196.97. Shares of CF are now quickly moving within range of triggering another major breakout trade. That trade will hit if CF manages to take out some past overhead resistance at $208.17 with high volume.

  Traders should now look for long-biased trades in CF as long as it's trending above its 200-day at $198.52 or above $197 and then once it sustains a move or close above Monday's high of $202.77 to $208.17 with volume that hits near or above 899,814 shares. If that breakout triggers soon, then CF will set up to re-test or possibly take out its next major overhead resistance levels at $220 to $225.

  Keep in mind that CF is set to report earnings on Aug. 6 after the market close. Look to play that breakout before and then after earnings, once you know that the stock is reacting positively to the numbers.

• [By James K. Glassman]

   A standout in an unlikely business is CF Industries, a fertilizer producer based in Deerfield, Ill. In 2011, its free cash flow roughly doubled, to a hefty $1.8 billion, from the previous year, as it had from the preceding year as well. Lately, CF's capital expenditures have been well below its depreciation, but the company's revenues keep rising. CF's strong cash performance has, quite naturally spurred its board to boost the dividend -- from an annual rate of 40 cents per share in 2010 to a rate of $1.60 today.
  Read more at http://www.kiplinger.com/slideshow/investing/T052-S001-9-cash-rich-stocks-to-buy-now/index.html#LLDifCZJ5h4D3JBY.99 

Top 10 Dividend Companies For 2014: Biotron Ltd (BIT.AX)

Biotron Limited, a clinical stage drug development company, focuses on developing small molecule antiviral drugs targeting Hepatitis C virus (HCV), HIV, dengue, and others in Australia. The company is developing novel small molecule therapeutics that target primarily the Vpu protein of HIV and p7 protein of HCV. Its lead drug includes the BIT225, a viroporin inhibitor for the treatment of HCV and HIV infections in a Phase Ib/2a HIV trial. The company also has early stage programs target other viruses, including Dengue; and a research and development program with back-up compounds for its HIV/HCV programs. Biotron Limited is based in North Ryde, Australia.

Best Medical Companies To Invest In Right Now

On Tuesday, Medtronic (NYSE: MDT  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.

One of the hardest-hit industries from new taxes under Obamacare has been the medical-device business, with a new 2.3% excise tax hitting Medtronic and its device-making peers. Yet the company has taken steps to minimize the impact from Obamacare on its results. Let's take an early look at what's been happening with Medtronic over the past quarter and what we're likely to see in its quarterly report.

Best Medical Companies To Invest In Right Now: Telik Inc (TELK)

Telik, Inc. (Telik), incorporated in 1988, is a clinical-stage drug development company focused on discovering and developing small molecule drugs to treat cancer. The Company discovers its product candidates using the Company�� drug discovery technology, Target-Related Affinity Profiling (TRAP). TELINTRA, its principal drug product candidate in clinical development, is a small molecule glutathione analog inhibitor of the enzyme glutathione S-transferase P1-1 (GST P1-1). TELCYTA, its other product candidate, is a small molecule cancer drug product candidate designed to be activated in cancer cells.

Clinical Product Development

TELINTRA is the Company�� lead small molecule product candidate in clinical development for the treatment of blood disorders, including cancer. It has a mechanism of action and acts by inhibiting GST P1-1, an enzyme that is involved in the control of cellular growth and differentiation. Inhibition of GST P1-1 results in the activation of the signaling molecule Jun kinase, a regulator of the function of blood precursor cells. Preclinical tests show that TELINTRA is capable of causing the death or apoptosis of leukemic or malignant blood cells, while stimulating the growth and development of normal blood precursor cells. TELINTRA has been studied in Myelodysplastic Syndrome (MDS) using two formulations. A liposomal formulation was developed for intravenous administration of TELINTRA and was used in Phase I and Phase II studies in MDS patients. The results from the Phase II intravenous liposomal TELINTRA clinical trials demonstrated that TELINTRA treatment was associated with improvement in all three types of blood cell levels in patients with all types of MDS, including those in intermediate and high-risk groups. An oral dosage formulation (tablet) was subsequently developed and results from a Phase I study with TELINTRA tablets showed clinical activity and the formulation to be well tolerated. In June 2011, the Company initiated a Phase II clinical ! trial to evaluate TELINTRA tablets. In October 2011, the Company initiated an additional Phase IIb clinical trial to evaluate TELINTRA tablets. '

The activity and safety profile of tablet formulation allowed the Company to complete a Phase II trial of TELINTRA tablets in MDS. The primary objective of the Phase II TELINTRA tablet study was to determine the efficacy of TELINTRA. A multivariate logistic regression analysis was conducted to identify MDS disease prognostic factors associated with erythroid improvement response rates, including prior MDS treatment, age, gender, the international prognostic scoring system (IPSS), risk, Eastern Cooperative Group performance status, years from MDS diagnosis, MDS World Health Organization subtypes, anemia only versus anemia plus other cytopenias, dose schedule and starting dose. Results from this study show that TELINTRA is the first GSTP1-1 enzyme inhibitor shown to cause clinically reductions in red blood cell transfusions, including transfusion independence in low to intermediate-1 risk MDS patients, as well as improvement in platelet count and white blood cell levels in certain patients. TELINTRA, administered orally twice daily, appeared to be convenient and flexible for chronic treatment administration.

TELCYTA is a small molecule drug product candidate that the Company is developed for the treatment of cancer. TELCYTA binds to GST. TELCYTA has been evaluated in multiple Phase II and Phase III clinical trials, including trials using TELCYTA as monotherapy and in combination regimens in ovarian, non-small cell lung, breast and colorectal cancer. Results from these clinical trials indicate that TELCYTA monotherapy was generally well-tolerated, with mostly mild to moderate side effects, particularly when compared to the side effects and toxicities of standard chemotherapeutic drugs. When TELCYTA was evaluated in combination with standard chemotherapeutic drugs, the tolerability of the combinations was similar to that expected of each! drug alo! ne.

Clinical activity including objective tumor responses and/or disease stabilization was reported in the TELCYTA Phase II trials; however, TELCYTA did not meet its primary endpoints in the Phase III studies. Positive results from a Phase I-IIa multicenter, dose-ranging study of TELCYTA in combination with carboplatin and paclitaxel as first-line therapy for patients with non-small cell lung cancer, or NSCLC, were published in a peer reviewed publication. Clinical data demonstrated positive results of TELCYTA in combination with carboplatin and paclitaxel in the treatment of first-line lung cancer followed by TELCYTA maintenance therapy. As of December 31, 2011, the Company had an on-going investigator-led study at a single site of TELCYTA in patients with refractory or relapsed mantle cell lymphoma, diffuse B cell lymphoma, and multiple myeloma.

Preclinical Drug Product Development

The Company has a small molecule compound, TLK60404, in preclinical development that inhibits both Aurora kinase and VEGFR kinase. Aurora kinase is a signaling enzyme whose function is required for cancer cell division, while VEGF plays a key role in tumor blood vessel formation, ensuring an adequate supply of nutrients to support tumor growth. These lead compounds prevented tumor growth in preclinical models of human colon cancer and human leukemia by inhibiting both Aurora kinase and VEGFR kinase. A development drug product candidate, TLK60404, has been selected.

The Company, using its TRAP technology has discovered TLK60357, a novel, potent small molecule inhibitor of cell division. TLK60357 inhibits the formation of microtubules that are necessary for cancer cell growth leading to persistent G2/M cancer cell cycle block and subsequent cell death. This compound demonstrates potent broad-spectrum anticancer activity against a number of human cancer cells. This compound also displays oral efficacy in multiple, standard preclinical models of cancer. TLK60596, a potent VG! FR kinase! inhibitor, blocks the formation of new blood vessels in tumors. Oral administration of TLK60596 to animal models of human colon cancer reduced tumor growth.

Best Medical Companies To Invest In Right Now: Scancell Holdings PLC (SCLP.L)

Scancell Holdings PLC is a United Kingdom-based company. The Company�� principal activity of the consists of the discovery and development of monoclonal antibodies and vaccines for the treatment of cancer. In April 2012, the Company completed recruitment to the Phase 1 clinical trial of SCIBI. In May 2012, the Company commenced recruitment and treatment of the first patient in the second part of it Phase 1/2 clinical trial of SCIBI. The Phase 2 part of the trial is conducted in five United Kingdom centers in Nottingham, Manchester, Newcastle, Leeds, and Southampton. On August 15, 2012, the Company announced the development of a platform technology, Moditope.

Hot Blue Chip Companies To Buy For 2014: Cell Therapeutics Inc (CTIC)

Cell Therapeutics, Inc. (CTI), incorporated in 1991, develops, acquires and commercializes treatments for cancer. The Company�� research, development, acquisition and in-licensing activities concentrate on identifying and developing new ways to treat cancer. As of December 31, 2011, CTI focused its efforts on Pixuvri (pixantrone dimaleate) (Pixuvri), OPAXIO (paclitaxel poliglumex) (OPAXIO), tosedostat, brostallicin and bisplatinates. As of December 31, 2011, it developed Pixuvri, an anthracycline derivative for the treatment of hematologic malignancies and solid tumors. Another late-stage drug candidate of the Company, OPAXIO, is being studied as a potential maintenance therapy for women with advanced stage ovarian cancer, who achieve a complete remission following first-line therapy with paclitaxel and carboplatin. As of December 31, 2011, it also developed tosedostat in collaboration with Chroma Therapeutics, Ltd. (Chroma). On May 31, 2012, CTI completed its acquisition gaining worldwide rights to S*BIO Pte Ltd.'s (S*BIO) pacritinib.

Pixuvri

As of December 31, 2011, the Company developed Pixuvri, an aza-anthracenedione derivative, for the treatment of non-Hodgkin�� lymphoma (NHL), and various other hematologic malignancies, and solid tumors. Pixuvri was studied in the Company�� EXTEND, or PIX301, clinical trial, which was a phase III single-agent trial of Pixuvri for patients with relapsed, refractory aggressive NHL who received two or more prior therapies and who were sensitive to treatment with anthracyclines. On September 28, 2011, CTI announced that a second independent radiology assessment of response and progression endpoint data from its PIX301 clinical trial of Pixuvri was achieved with statistical significance. The results of the EXTEND trial met its primary endpoint and showed that patients randomized to treatment with Pixuvri achieved a significantly higher rate of confirmed and unconfirmed complete response compared to patients treated with standard chem! otherapy had a significantly increased overall response rate and experienced a statistically significant improvement in median progression free survival. Pixuvri had predictable and manageable toxicities when administered at the proposed dose and schedule in the EXTEND clinical trial in heavily pre-treated patients. In March 2011, the Company initiated the PIX-R trial to study Pixuvri in combination with rituximab in patients with relapsed/refractory diffuse large B-cell lymphoma (DLBCL). Pixuvri has also been studied in patients with HER2-negative metastatic breast cancer who have tumor progression after at least two, but not more than three, prior chemotherapy regimens. In the second quarter of 2010, the NCCTG opened this phase II study for enrollment. The study is closed to accrual and results are expected to be reported by the NCCTG later in 2012.

OPAXIO

OPAXIO is the Company�� biologically-enhanced chemotherapeutic agent that links paclitaxel to a biodegradable polyglutamate polymer, resulting in a new chemical entity. As of December 31, 2011, the Company focused its development of OPAXIO on ovarian, brain, esophageal, head and neck cancer. OPAXIO was designed to improve the delivery of paclitaxel to tumor tissue while protecting normal tissue from toxic side effects. In November 2010, results were presented by the Brown University Oncology Group from a phase II trial of OPAXIO combined with temozolomide (TMZ), and radiotherapy in patients with newly-diagnosed, high-grade gliomas, a type of brain cancer. The trial demonstrated a high rate of complete and partial responses and a high rate of six month progression free survival (PFS). Based on these results, the Brown University Oncology Group has initiated a randomized, multicenter, phase II study of OPAXIO and standard radiotherapy versus TMZ and radiotherapy for newly diagnosed patients with glioblastoma with an active gene termed MGMT that reduces responsiveness to TMZ. A phase I/II study of OPAXIO combined with radi! otherapy ! and cisplatin was initiated by SUNY Upstate Medical University, in patients with locally advanced head and neck cancer.

Tosedostat

In March 2011, the Company entered into a co-development and license agreement with Chroma Therapeutics, Ltd. (Chroma), providing the Company with marketing and co-development rights to Chroma�� drug candidate, tosedostat, in North, Central and South America. Tosedostat is an oral, aminopeptidase inhibitor that has demonstrated anti-tumor responses in blood related cancers and solid tumors in phase I-II clinical trials. Interim results from the phase II OPAL study of tosedostat in elderly patients with relapsed or refractory acute myeloid leukemia (AML) showed that once-daily, oral doses of tosedostat had predictable and manageable toxicities and results demonstrated response rates, including a high-response rate among patients who received prior hypomethylating agents, which are used to treat myelodysplastic syndrome (MDS), a precursor of AML.

Brostallicin

As of December 31, 2011, the Company developed brostallicin through its wholly owned subsidiary, Systems Medicine LLC, which holds rights to use, develop, import and export brostallicin. Brostallicin is a synthetic deoxyribonucleic acid (DNA) minor groove binding agent that has demonstrated anti-tumor activity and a favorable safety profile in clinical trials, in which more than 230 patients have been treated as of December 31, 2011. The Company uses a genomic-based platform to guide the development of brostallicin. A phase II study of brostallicin in relapsed, refractory soft tissue sarcoma met its predefined activity and safety hurdles and resulted in a first-line phase II clinical trial study that was conducted by the European Organization for Research and Treatment of Cancer (EORTC).

The Company competes with Bristol-Myers Squibb Company, Sanofi-Aventis, Pfizer, Roche Group, Genentech, Inc., Astellas Pharma, Eli Lilly and Company, Celgene, Telik, I! nc., TEVA! Pharmaceuticals Industries Ltd. and PharmaMar.

Best Medical Companies To Invest In Right Now: StemCells Inc (STEM.W)

StemCells, Inc. (StemCells), incorporated in August 1988, is engaged in the research, development, and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The Company is focused on developing and commercializing stem and progenitor cells as the basis for therapeutics and therapies, and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. The Company�� primary research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents. The Company has two therapeutic product development programs, including its CNS Program, which is developing applications for HuCNS-SC cells, its human neural stem cell product candidate, and its Liver Program, which is characterizing the Company�� human liver cells as a therapeutic product.

CNS Program

The Company in its CNS Program, is in clinical development with its HuCNS-SC cells for a range of disorders of the central nervous system. The CNS includes the brain, spinal cord and eye. In February 2012, the Company had completed a Phase I clinical trial in Pelizeaus-Merzbacher Disease (PMD), a fatal myelination disorder in the brain.

The Company�� CNS Program is focused on developing clinical applications, in which transplanting HuCNS-SC cells protect or restore organ function of the patient before such function is irreversibly damaged or lost due to disease progression. The Company�� initial target indications are PMD, and more generally, diseases in which deficient myelination plays a central role, such as cerebral palsy or multiple sclerosis; spinal cord injury, disorders in which retinal degeneration plays a central role, such as age-related macular degeneration or retinitis pigmentosa. The Company�� product candidate, HuCNS-SC cells, is a purified and expanded composition of normal hum an neural stem cells. Its HuCNS-SC cells can be directly tr! a! nsplanted.

Liver Program

Liver stem or progenitor cells offer an alternative treatment for liver diseases. A liver cellular therapy or cell-based therapeutic provide or support liver function in patients with liver disease. The Company held a portfolio of issued and allowed patents in the liver field, which cover the isolation and use of both hLEC cells and the isolated subset, as well as the composition of the cells themselves.

The Company�� range of cell culture products, which are sold under the SC Proven brand, includes iSTEM, GS1-R, GS2-M, RHB-A, RHB-Basal, NDiff N2, and NDiff N2B27. Its iSTEM is a serum-free, feeder-free medium that maintains mouse embryonic stem cells in their pluripotent ground state by using selective small molecule inhibitors to block the pathways, which induce differentiation. RHB-A is a defined, serum-free culture medium for the selective culture of human and mouse neural stem cells and their maintenanc e and expansion as adherent cell populations. RHB-Basal is a defined, serum-free basal medium. When supplemented with specific growth factors, this media is formulated for the propagation and differentiation of adherent neural stem cells. RHB-Basal can also be tailored to specific-cell type requirements by the addition of customer preferred supplements.

The Company�� NDiff N2 is a defined serum-free scell culture supplement for the derivation, maintenance, expansion and/or differentiation of human and mouse embryonic stem (ES) cells and tissue-derived neural stem cells supplement. Its NDiff N2-AF is a serum-free and animal component-free version of NDiff N2. Its NDiff N2B27 is a defined, serum-free medium for the differentiation of mouse embryonic stem cells to neural cell types. NDiff N27-AF is a serum-free and animal component-free version of NDiff N27. Its GS1-R is a serum-free media formulation shown to enable the derivation and long-term maintenance of tr ue, germline competent rat embryonic stem cells without! the ! ad! dition ! of cytokines or growth factors. Its GS2-M is a defined, serum- and feeder-free medium for the derivation and long-term maintenance of true, germline competent mouse iPS cells.

The Company also markets a number of antibody reagents for use in cell detection, isolation and characterization. These reagents are also under the SC Proven brand and it includes STEM24, STEM101, STEM121 and STEM123. Its STEM24 is a human antibody that recognizes human CD24, also known as heat stable antigen (HSA), a glycoprotein expressed on the surface of many human cell types, including immature human hematopoietic cells, peripheral blood lymphocytes, erythrocytes and many human carcinomas. Its CD24 is also a marker of human neural differentiation. Its STEM101 is a human-specific mouse antibody that recognizes the Ku80 protein found in human nuclei. Its STEM121 is a human-specific mouse antibody that recognizes a cytoplasmic protein of human cells. Its STEM123 is a human-specific mouse antibody that recognizes human glial fibrillary acidic protein (GFAP).

The Company�� Other products marketed under SC Proven include total cell genomic DNA (gDNA), RNA and protein lysate reagents purified from homogenous stem cell populations for intra-comparative studies, such as Epigenetic fingerprinting, Southern, Western and Northern blots, PCR, RT-PCR and microarrays. This range of purified stem cell line lysates includes mouse embryonic stem (ES) cells propagated in SC Proven 2i inhibitor-based GS2-M media and mouse ES cell-derived and fetal tissue-derived neural stem (NS) cells propagated in SC Proven RHB-A media.

Best Medical Companies To Invest In Right Now: Scancell Holdings PLC (SCLP)

Scancell Holdings PLC is a United Kingdom-based company. The Company�� principal activity of the consists of the discovery and development of monoclonal antibodies and vaccines for the treatment of cancer. In April 2012, the Company completed recruitment to the Phase 1 clinical trial of SCIBI. In May 2012, the Company commenced recruitment and treatment of the first patient in the second part of it Phase 1/2 clinical trial of SCIBI. The Phase 2 part of the trial is conducted in five United Kingdom centers in Nottingham, Manchester, Newcastle, Leeds, and Southampton. On August 15, 2012, the Company announced the development of a platform technology, Moditope.

Vanguard Wraps Up Benchmark Switch, Taps Muni Bond Fund Managers

Vanguard said Friday that it has completed the six-month transition to FTSE and CRSP benchmarks for 22 index funds with some $650 billion in assets, including the $70 billion Vanguard Emerging Markets Stock Index Fund (VEIEX) and ETF (VWO), which previously tracked the MSCI Emerging Markets Index.

The fund giant “expects the transitions will result in lower expense ratios over time, providing significant value to index fund and ETF shareholders,” it explained in a statement. “In an environment in which index-licensing fees, in general, have represented a growing portion of the expenses that investors pay to own index funds and ETFs, Vanguard entered into long-term agreements with FTSE and CRSP that will provide cost certainty going forward.”

The new tracking indexes were developed by FTSE and the University of Chicago's Center for Research in Security Prices (CRSP).

According to Vanguard Chief Investment Officer Tim Buckley (left), the new benchmarks were picked last year because of their “cost, cost certainty, construction and coverage.”

“From a construction standpoint, the indexes from FTSE and CRSP meet Vanguard's ‘best practice’ standards for market benchmarks,” he explained on Vanguard’s website Thursday.

“These indexes incorporate full-float adjustment to reflect only those shares that are available and freely traded on the open market, providing a more accurate reflection of market movements,” Buckley said. “They buffer stock movement between market-capitalization segments, helping to reduce index turnover. They also incorporate multiple criteria to identify growth versus value. And they engage in gradual, orderly rebalancing to reflect market changes."

Vanguard CIO says that before the index switch, the fund giant used FTSE benchmarks for more than 20 index products with roughly $26 billion in assets. (FTSE has more than $3 trillion of assets benchmarked to its indexes worldwide.)

“With regard to CRSP, we're impressed by the quality and depth of its staff, as well as their experience," Buckley said. "The research organization pioneered the development of U.S. stock market data in 1960 that are widely used in academic and investment research.”

In other news, Vanguard says it has reassigned portfolio management responsibilities for five tax-exempt funds, four of which were managed by Michael Kobs, who has left the firm.

The portfolio manager for the $38.6 billion Vanguard Intermediate-Term Tax-Exempt Fund and the municipal bond portion of Vanguard Tax-Managed Balanced Fund is James D'Arcy.

Mathew M. Kiselak and Adam M. Ferguson are now co-managers of the $3.4 billion Vanguard New York Long-Term Tax-Exempt Fund, with Kiselak also taking responsibility for the $2.1 billion Vanguard New Jersey Long-Term Tax-Exempt Fund.

In addition, Ferguson is a new co-manager of the $7.2 billion Vanguard California Intermediate-Term Tax-Exempt Fund, along with D’Arcy, who had been the fund’s sole manager.  

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For direct insights on the role of ETFs in client portfolios from multiple experts—including Rick Ferri, Ron Delegge, Skip Schweiss and more—we invite you to register for AdvisorOne’s premiere advisorcentric Virtual ETF Summit, which starts July 23 (and get multiple hours of CFP Board CE).

Since RFS Went Into Effect, Corn, Not Oil, Drives Up Food Prices

(click to enlarge)

The pro-renewable fuels, pro-ethanol, anti-fossil fuel organization Fuels America, which is "committed to protecting America's Renewable Fuel Standard (RFS)," featured the chart above on Twitter with this text:

FACT: Oil, not corn, drives food prices. Near perfect correlation

The chart presented by Fuels America shows the historical relationship (August 1999 to April 2011) between oil futures prices and the Reuters/Jeffries CRB commodity futures price index, and is supposedly presented as "evidence" to counter the frequent claim that higher corn prices, due to the RFS' ethanol mandate, are driving up food prices. Where to start with such sloppy "statistics"?

1. The CRB commodity futures index is based on the prices of 19 commodities: Aluminum, Cocoa, Coffee, Copper, Corn, Cotton, Crude Oil, Gold, Heating Oil, Lean Hogs, Live Cattle, Natural Gas, Nickel, Orange Juice, Silver, Soybeans, Sugar, Unleaded Gas and Wheat. Fewer than half (9) of those commodities are food (with a combined weight of only 36%) and the other 10 are metals, petroleum products, and fibers. Conclusion: the CRB commodity price futures index is not a measure of food prices, it's a broad-based commodity index.

Top 5 Blue Chip Stocks To Buy Right Now

Crude oil has a weight of 23% (the highest weight of any of the commodities) in the CRB index, and when you include heating oil and unleaded gas, those three oil-based commodities have a 33% weight in the CRB Index. Wouldn't we expect a strong or "near perfect" historical relationship between oil prices and a commodity price index that is weighted 33% by oil and oil products?

2. What does "near perfect correlation" mean? The chart shows a pretty close historical association be! tween oil futures prices and the CRB index, but there is no correlation coefficient presented.

3. How do we know that the relationship between corn prices and oil prices isn't even stronger than the relationship between "food" prices and oil prices? In other words, how can we conclude that "Oil, not corn, drives food prices" when we aren't presented with any measure of corn prices, or any historical relationship between corn prices and food prices?

4. The Renewable Fuel Standard didn't go into effect until 2006, so why would be interested in the relationship between oil and "food" prices from 1999 to 2005 period? And why does the "analysis" stop in April 2011, more than two years ago?

Let's conduct a more complete analysis by starting with the following two charts, showing the historical monthly relationships between: a) oil prices and foods prices, measured by the Consumer Price Index for Food, and b) spot corn prices (from Global Financial Data) and food prices:

(click to enlarge) (click to enlarge)Conclusion: The correlation between corn prices and food prices (0.871) from 2000 and 2013 (bottom chart) was actually slightly higher than the correlation between food prices and oil prices (0.858).

Here are two slightly different versions of the two charts above that cover only the 2006-2013 period when the RFS was actually in effect:

(click to enlarge)(click to enlarge)Conclusion: During the period when the RFS has actually been in effect (2006 to present), the statistical relationship between corn and food prices (correlation = 0.828) has been much stronge! r than th! e statistical relationship between oil and food prices (0.441).

Here's my bottom line with all of the usual caveats about correlation not implying causation, etc.

FACT: Since the Renewable Fuel Standard went into effect in 2006, corn, not oil, drives food prices. Near perfect correlation.

Source: Since RFS Went Into Effect, Corn, Not Oil, Drives Up Food Prices

Bull of the Day: Valeant (VRX) - Bull of the Day

Valeant Pharmaceuticals (VRX)Zacks Rank #1, is a healthcare provider with a focus on dermatology and eye care products. Valeant may provide a remedy for investors looking for growth in a macro environment filled with unease over higher interest rates, slow economic growth, and geopolitical strain. Interest rates have shot higher in recent weeks on firm U.S. labor market conditions and ideas the Federal Reserve could taper its asset purchase program in September, while the IMF recently hinted it could cut its global growth forecast due to the weak performance in emerging market economies. These dynamics are mixed social unrest in Egypt. Demand for healthcare products should be insulated from these macro dynamics, and growth shares in the healthcare sector may provide refuge for investors trying to avoid the pot holes of higher rates and slow global growth.

Valeant's aggressive growth strategy and cost savings look attractive:

Valeant has produced vibrant revenue growth in recent years helped by an aggressive acquisition strategy. Valeant made 11 acquisitions in 2011 and another 12 in 2012. These actions helped to propel 108% revenue growth in 2011 and another 44% in 2012. In Late May, Valeant announced the purchase of Bausch and Lomb. The deal is expected to generate $800 mln in cost savings, an internal rate of return in excess of 20%, and be accretive to earnings. In a recent company presentation, Valeant highlighted an aging population, increased incidence of diabetes, and rising wealth in emerging nations as factors which will support growth in ophthalmology.

Earnings estimates are trending higher:

Of the nine analysts covering Valeant, five have moved their 2013 and 2014 earnings per share estimates higher in the past quarter. At the same time, the consensus earnings per share estimates for 2013 and 2014 have increased $0.29 and $1.39 to $5.93 and $7.92 respectively over the past quarter. The most accurate analyst is also projecting 2013 and 2014 earnings! per share well ahead of the consensus forecast painting the potential for a further boost to the earnings picture, and the chance for an upside earnings surprise. The most accurate forecaster is predicting 2013 earnings per share at $6.85 almost a $1.00 over the consensus and 2014 earnings per share of $9.15 nearly $1.25 over the average estimate.

A large insider purchase suggests confidence in Valeant's strategy:

A scanning of the SEC form 4 releases showed a Director acquiring over 1.35 mln shares of Valeant at $85.00 on June 19th. This transaction occurred just after Valeant's purchase of Bausch and Lomb and prior to Valeant's share price holding the $82.00 area for a second time. Technical traders may see the stock working higher out of a small double bottom formation off $82.00 on the recent rally over $88.67, and the lift as a sign of price strength. Lastly, Valeant issued 23.5 mln shares at $85.00 to fund its Bausch and Lomb acquisition on June 24th. Supply pressures from this issuance should be finished.

If the rash of headlines over Federal Reserve policy, slow emerging market growth, and unrest in the Middle East have you nervous about your investment portfolio, a dose of Valeant may be the medicine you need to heal your portfolio performance.



Nick Kalivas is the newest member of Zacks. He has written numerous articles on investment topics and market strategy.

Bear of the Day: Rentech (RTK) - Bear of the Day

Rentech (RTK) is seeing estimates for 2013 slide deeper and as a result it is a Zacks Rank #5 (Strong Sell). It is the Bear of the Day.

Moving to the NASDAQ Capital Market

Yesterday, the company announced that it will transfer its listing from the NYSE to the NASDAQ Capital Market effective with the start of trading on August 13, 2013. Rentech will continue to trade under its existing ticker symbol "RTK." Rentech's common stock will trade on the NYSE MKT until the close of trading on August 12, 2013.

Company Description

Rentech engages in the sale of natural-gas based nitrogen fertilizer products in the United States and Brazil. Its products include ammonium sulfate, sulfuric acid, and ammonium thiosulfate used in the production of corn, soybeans, potatoes, cotton, canola, alfalfa, and wheat. Rentech, Inc. was founded in 1980 and is based in Los Angeles, California.

Earnings History

Over the last six earnings reports, the RTK hasn't done so well. I see one beat in for the September 2012 quarter. There were two earnings meets and three earnings misses.

Two of the three earnings misses have been the last two reported quarters. The negative earnings surprises both came with Wall Street looking for the company to report either a gain or a breakeven quarter, and both times the company reported a loss in the quarter.

Earnings Estimates Not Growing

Estimates for RTK have declined of late. The 2013 estimates are moving lower, but not by that much. Peaking at $0.14 in March they have ticked lower to $0.07 in April. They have since slide to $0.02.

The 2014 Zacks Consensus Estimate seen a more dramatic collapse, with estimates moving from $0.26 in June to $0.14 at the current level.

Valuation

The valuation picture for RTK is off the charts. By off the charts I mean that the industry averages are negative, not allowing for a proper comparison. Still the 107X trailing PE is huge, but bigger still is the 142.7x forward PE. The Price ! to book multiple of 2.6x is a good sized premium to the industry average of 1.9x. The price to sales metric has the company trading at 1.7x vs the 1.1x for the industry.

The Chart

The price and consensus chart really tells the story here as the estimate lines for 2013 and 2014 have recently taken a nosedive. That dive lower in estimates comes a little after the stock fell from $3 to $2.25. The problem is, estimates may still fall further, which will lead to lower stock prices.

Brian Bolan is a Stock Strategist for Zacks.com. He is the Editor in charge of the Zacks Home Run Investor service, a Buy and Hold service where he recommends the stocks in the portfolio.

Brian is also the editor of Breakout Growth Trader a trading service that focuses on small cap stocks and also carries a risk limiting strategy. Subscribers get daily emails along with buy, and sell alerts.

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All you wanted to know about RGESS

Top 10 High Tech Companies To Buy Right Now

Below is the verbatim transcript of an interview aired on CNBC-TV18.

Q: The Rajiv Gandhi Equity Savings Scheme (RGESS) has got some more sops added to it, the limit has been increased and the time period for which one can put in money has been increased. Is all this good enough, how has been the performance on the ground and what would you advise people to do?

A: Rajiv Gandhi Equity Savings Scheme has come up with enhanced features into it so more steroids in it in terms of taking call from retail investors' point of view. The limit has gone up from 10 lakh to 12 lakh and that is positive because that now covers 30 percent tax bracket people also.

If one goes by the simple mathematics then there is a potential to save Rs 7,500, which was earlier only Rs 5,000. It has spread out over three years, is also an advantage because it helps one to take benefit over three years period.

Therefore, the goodies are very much in advantage and another thing, which is a by-product to this is that finance minister and government is trying to encourage people to open demat accounts because somewhere equity cult and culture has to build in. Right now foreigners are buying more equity than Indians. 

Union Budget 2013 - 14: Tax sops in RGESS extended to 3 years: Chidambaram

Q: A lot of people who know about market are probably looking for it in the names of their sons or relatives who have not already invested in market. Is that how it can be interpreted, is that an available loophole or is it that something has been put in and one cannot use this ploy to get a relative in who does not have share positions already?

A: It is not a loophole. It is a normal product because most of the time these kinds of products with this kind of tax benefits does not takeoff immediately even the equity linked saving schemes (ELSS) took their time to build up and even with RGESS. Therefore, the most knowledgeable customer will take the benefit of these kinds of features and tax planning and others will follow slowly and effectively.

However, one good thing, which has started happening, is in the intermediation circles people have started going back to the investors and started talking about it. I think that is a big difference, which has happened because of RGESS, which was not there earlier and that is a very big positive.

Caller Q: I want to purchase one health insurance policy for myself and for my daughter. I would like to prefer ICICI so what care should I take for that?

A: ICICI Lombard is a good product to have. They have good servicing and technology to support, which will help you buy policy. However, along with this if you can look at claim settlement ratio and also look at what kind of servicing team they have. Do they have an internal servicing ream or they have third party servicing team. If these two filters can also be played, it will help you buy a good product.

So, keeping these two filters along with ICICI Lombard we will advice if you can look at Bajaj Allianz because Bajaj Allianz has better claim settlement ratio in the industry and they have in-house servicing team, which helps you settle your claims much more effectively over a period of time. Another factor is loading that means if you go in for increase cover later point of time, what kind of loading happens. So, that is where it is comparative between ICICI and Bajaj Allianz but between ICICI and Bajaj Allianz you can choose anyone of them. 

The Best Entry-Level Finance Jobs For 2013

Best Tech Stocks To Own Right Now

While the national rate of unemployment in America may have risen slightly between April and May this year, it has generally continued along a downward trend since the final financial quarter of 2012. The portents of moderate but sustained growth were continued in June. Although applications for U.S. unemployment benefits rose by 18,000, this remained consistent with the current level of job creation.

Further inspection of these statistics reveals a slightly different perspective, however, especially with regard to the type of jobs that are being created in the contemporary employment market. While the U.S. economy added an estimated 175,000 new jobs in May, for example, the majority of these were low paid, entry-level positions that delivered less than a living wage.

Maximizing Your Earning Potential in the Current Job Market
With youth unemployment in the United States also remaining uncomfortably high at 16.2%, it is clear that the job market poses considerable challenges to the majority of social demographics. The issues facing college graduates and America's unemployed youth offer a fascinating insight into the mindset of employers, however, as a lack of practical work experience often undermines any academic qualifications that candidates have acquired. With this in mind, entry-level jobs actually offer individuals a unique opportunity to maximize their current earning potential as they gather valuable industry experience. The key is to identify the most rewarding entry-level jobs, both in terms of salary and future career prospects. Consider the following options:

Financial Analyst
While the current economic recovery may be extremely tentative, it has at least been sustained since the opening financial quarter of 2013. This triggered a rise in business confidence during June, as firms begin to look toward expansion and the investment of their accrued capital. In order to make wise and responsible decisions, however, organizations often turn to financial analysts for guidance and relevant market advice that help to maximize their potential returns.

Requiring a bachelor's degree and accessible to individuals who have no practical experience within the industry, it carries a median annual wage of $60,000, according to Glassdoor.com, and offers tremendous opportunities to recently graduated individuals.

Investment Banking Analyst
If you are motivated by a high bottom line salary and wish to apply your skills in a more clearly defined financial sector, becoming an investment banking analyst may be the ideal career choice. With a competitive median annual salary of approximately $73,000, it requires you to interpret financial data and economic trends while offering actionable investment advice. Clients can vary from wealthy investors to government agencies that are looking to issue stocks and bonds, so you must display diverse communication skills alongside your bachelor's or master's degree.

This job role is the ideal starting point for college graduates who are looking to forge a career in investment banking, which means that competition for positions is usually intense and extremely challenging.

Junior Tax Associate
There have been positive signs of growth in the financial services sector during the formative stages of 2013, with business lending, life insurance and the asset management industry all benefiting from increased demand. Some financial services remain in constant demand, however, especially those that are associated with taxation and the need to comply with changeable financial legislation.

With this in mind, the role of a junior tax associate is ideal for college graduates who are looking to develop valuable workplace experience in the financial sector. Although it boasts a relatively moderate annual median salary of $53,000, it allows you to work alongside experienced tax associates and review client's internal fiscal reporting systems. It is a job accessible to anyone with a bachelor's degree in accounting and any additional accreditations.

Financial Auditor
Regardless of your salary expectations or long-term career goals, you may decide to select a financial sector role that has both immediate and long-term potential for growth. The role of financial auditor provides a relevant example, as the recent global recession and its aftermath has forced businesses to place their spending and fiscal reporting under more stringent scrutiny as they look to learn valuable economic lessons.

As an auditor, you will review companies' financial statements and ensure that their public records are kept accurately and in compliance with existing legislation. You will also secure an annual median salary of $49,000, while a four-year bachelor's degree is the minimum academic requirement for applicants. To improve your prospects and compete in this well-populated sector, you should also consider completing an advanced degree course in accounting or business administration.

The Bottom Line
As entry-level jobs, these positions offer graduates of all ages an opportunity to forge a career in the growing financial services sector. They remain accessible to anyone with a bachelor's degree, regardless of each individual candidate's level of practical workplace experience and industry knowledge; they also deliver relatively competitive financial remuneration. So while an excess of low paid, entry-level jobs may be the source of controversy in the current employment market, it is possible for those with the necessary academic qualifications to maximize their earning potential both now and in the future.

3 Wall Street Titans Moving and Shaking

Despite ticking lower today, Morgan Stanley (NYSE: MS  ) , Bank of New York Mellon  (NYSE: BK  ) , and State Street (NYSE: STT  ) have crushed the market over the past year.

Armed with a new vision, Morgan Stanley may be on the road to success, but investors will need to have faith in CEO James Gorman. In this video, Motley Fool banking analysts David Hanson and Matt Koppenheffer discuss the investment bank, as well as the other two and tell investors which one they are most interested in.

While some big banks continue to limp through their post-crisis recovery, Bank of New York Mellon has bounced right back. Though the bank is an 800-pound gorilla in the custody and asset management business, a new regulatory environment could be either a big new opportunity or a considerable risk. To help figure out whether this banker's bank is worthy of a spot on your watchlist, you're invited to check out The Motley Fool's new premium research report on BoNY. Click here now to claim your copy.

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Guidewire Software Beats on Both Top and Bottom Lines

Guidewire Software (NYSE: GWRE  ) reported earnings on May 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q3), Guidewire Software beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped to a loss.

Margins contracted across the board.

Revenue details
Guidewire Software booked revenue of $68.3 million. The five analysts polled by S&P Capital IQ wanted to see net sales of $63.6 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $57.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.04. The six earnings estimates compiled by S&P Capital IQ anticipated $0.02 per share. Non-GAAP EPS of $0.04 for Q3 were 60% lower than the prior-year quarter's $0.10 per share. GAAP EPS were -$0.05 for Q3 compared to $0.05 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 47.3%, much worse than the prior-year quarter. Operating margin was -6.4%, much worse than the prior-year quarter. Net margin was -3.9%, 940 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $93.1 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $296.8 million. The average EPS estimate is $0.50.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 24 members out of 40 rating the stock outperform, and 16 members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give Guidewire Software a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Guidewire Software is outperform, with an average price target of $38.60.

Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Guidewire Software makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Add Guidewire Software to My Watchlist.

Exclusive: NVIDIA's Rob Csongor Lays Out the Opportunities

Yesterday, I had a conference call with NVIDIA (NASDAQ: NVDA  ) Vice President of Investor Relations Rob Csongor to discuss the company's most recent earnings release. Here are my takeaways.

Going after the "other half"
The company has made it clear that its smartphone strategy going forward will be to target the mid-range segment that's currently being addressed by Qualcomm's (NASDAQ: QCOM  ) Snapdragon S400 chip. NVIDIA expects the upcoming Tegra 4i to deliver three times the performance of the S400.

The way that NVIDIA sees it, the high-end smartphone market is totally dominated by Apple and Samsung, both of which use in-house applications processors as much as possible. Apple only uses A-chips nowadays, and Samsung uses both its Exynos chips and Qualcomm's Snapdragons. These are two OEMs that NVIDIA doesn't think are worth pursuing.

Instead, the company is targeting what Csongor refers to as the "other half" of the market. Indeed, Apple and Samsung combined comprised exactly 50% of the smartphone market in the first quarter, according to IDC's estimates. It's the LGs, Huaweis, ZTEs, and HTCs of the world that NVIDIA is going after, particularly in the 1,000 yuan segment in China.

However, Apple is expected to move downmarket into the mid-range with affordable iPhones, which could put pressure on NVIDIA's addressable market. Csongor wasn't deterred though, expressing confidence in Google Android's stickiness.

Who needs the PC?
NVIDIA's GPU sales have held up remarkably well in the face of a declining PC market. Csongor attributes this to the notion that, contrary to popular belief, NVIDIA doesn't exactly address the PC market directly. Instead, NVIDIA sells to gamers, who just so happen to use PCs as their weapon of choice. This subset of enthusiastic PC users is still strong, as evidenced by 8.1% increase in GPU revenue compared to the 14% decline in worldwide PC units.

Even though Microsoft (NASDAQ: MSFT  ) Windows 8 is receiving a cold reception, NVIDIA remains "platform agnostic" for the most part. It's inconsequential to NVIDIA whether or not gamers prefer Windows 7 or Windows 8 -- so long as they're still gaming on NVIDIA video cards.

Three's company
NVIDIA also has opportunities in Windows RT, even if it has reservations, as well. Csongor expressed that one of the biggest challenges with Windows RT is Microsoft's desire to exert control over hardware partners. It's known that the company dictated to its ARM-based chip partners how many OEMs they could pair with.

Of the three that Microsoft initially named, Texas Instruments abandoned mobile altogether, and Qualcomm has less experience with Windows software and drivers, giving NVIDIA some advantages. Still, the limits imposed by Microsoft mean that there are only three Tegra-powered Windows RT devices right now: Microsoft Surface RT, Lenovo Yoga 11, and ASUS VivoTab RT. None of those are blockbuster devices.

Catching a ride
The auto segment is also growing. NVIDIA expects auto sales to double this year, and auto revenue to reach $450 million by fiscal 2016. In comparison, Csongor said that auto is currently at about a $100 million run rate. In contrast to the mobile market, car design cycles are extremely long, so even if NVIDIA is able to score a win, it takes years before the model will actually ship.

In addition, auto is inherently a much lower volume business than mobile, but the opportunities in powering navigation systems and infotainment consoles are entirely incremental.

Defending Shield
I've long been a skeptic of Shield, which was just priced at $349. NVIDIA saw a need in the market, because many touchscreen games on Android are better played with a controller. That need has spawned all sorts of aftermarket accessories that are far from convenient. As a company of gamers, NVIDIA simply built what it would want.

My biggest qualm with Shield is price. There's definitely interest in hardware controllers for Android games, but $349 seems excessive for a stand-alone device, when consumers can buy third-party controllers for as little as $25 for existing Androids. They're admittedly less convenient -- but is that convenience worth $325?

Csongor interestingly compares Shield's early impressions to the iPad. When Apple debuted its tablet, it was derided as useless and nothing more than a "bigger iPhone." He thinks Shield will similarly prove skeptics wrong.

Csongor also points out that the big difference between Shield and other handheld gaming consoles (that are declining) like Sony's PlayStation Vita, or Nintendo's 3DS, is that it taps into Android's open platform. The traditional model of giving away hardware at cost in order to generate long-term software licensing profits is dead. It will be replaced by a model where hardware is sold at a margin, and users will have access to a vast and open ecosystem of affordable gaming content provided by a wide range of developers, big and small.

Shield's saving grace is that, because NVIDIA already sources many of the components through its mobile business, Shield only required relatively small incremental investments and amounts to a cheap experiment. It won't break the bank if it fails. Shield is sold at a hardware margin, since NVIDIA won't profit off Google Play content sales.

What's next?
Going forward, NVIDIA's top priority is getting the Tegra 4i certified at AT&T, which is expected in the fourth quarter. By the first quarter of next year, Tegra 4i-powered smartphones should start hitting the market. The regular Tegra 4 should begin ramping in the third quarter in time for the holiday season.

Qualcomm looks set to have a comfortable 2013 on the smartphone front, considering NVIDIA's strategic decision to delay the Tegra 4 in order to accelerate the Tegra 4i. Can NVIDIA put the heat on next year?

NVIDIA was ahead of the curve launching its mobile Tegra processor, but investing gains haven't followed as expected, with the company struggling to gain momentum in the smartphone market. The Motley Fool's brand-new premium report examines NVIDIA's stumbling blocks, but also homes in on opportunities that many investors are overlooking. We'll help you sort fact from fiction to determine whether NVIDIA is a buy at today's prices. Simply click here now to unlock your copy of this comprehensive report.

 

 

Asia Stocks Fall as Topix Drops, U.S. Jobs Miss Estimates

Asian stocks fell, with the benchmark regional index on course for its first loss in three days, as the yen's gain weighed on Japanese exporters and U.S. jobs data missed estimates.

Mazda Motor Corp., an automaker that gets 30 percent of its sales in North America, dropped 4.1 percent in Tokyo. Fonterra Shareholders Fund tumbled 3.7 percent in Wellington after China and Russia halted imports of milk powder from Fonterra Cooperative Group Ltd., the world's largest dairy exporter. Tianneng Power International Ltd., a maker of storage batteries, tumbled as much as 19 percent before it was suspended from trading in Hong Kong.

The MSCI Asia Pacific Index fell 0.2 percent to 135.37 as of 5:20 p.m. Tokyo time, with more than five stocks dropping for every four that rose. The gauge rose 0.1 percent last week, capping a sixth straight week of gains, the longest winning streak since the period ended Jan. 4.

"Japan is still very choppy for me, to be honest," Chris Weston, chief market strategist at IG Markets Ltd. in Melbourne, said by telephone. The U.S. payrolls figures "weren't significantly weak enough to say we're definitively putting tapering off the table, but didn't certainly suggest there's rampant recovery going on in the jobs market. There's a recovery, but it's not enough to suspend the bond-buying program."

The MSCI Asia Pacific Index advanced 1.3 percent last month after China pledged to do more to support a transition from reliance on exports to domestic demand in the world's second-largest economy. Shares on the gauge traded at 13.2 times estimated earnings as of Aug. 2, compared with 15.5 times for the Standard & Poor's 500 Index and 13.8 times for the Stoxx Europe 600 Index.

Regional Measures

Japan's Topix index lost 1 percent after the yen gained 0.6 percent on Aug. 2. A stronger yen cuts the value of overseas earnings at Japanese companies. The MSCI Asia Pacific excluding Japan Index rose 0.2 percent.

South Korea's Kospi Index lost 0.4 percent. New Zealand's NZX 50 Index added 0.1 percent, while Australia's S&P/ASX 200 fell 0.1 percent. Taiwan's Taiex Index rose 0.5 percent and Singapore's Straits Times Index slid 0.6 percent.

Hong Kong's Hang Seng Index, the city's benchmark gauge, rose 0.1 percent. The Hang Seng China Enterprises Index slipped 0.1 percent. The Shanghai Composite Index added 1 percent.

China Services

An index of China's non-manufacturing sectors rose for the first time since March, a report Aug. 3 showed. HSBC Holdings Plc and Markit Economics' China services gauge was unchanged at 51.3 in July from June, data showed today.

The People's Bank of China will appropriately fine-tune policies and strike a balance between stable growth, structural adjustment, reform and risk prevention, according to a statement after a meeting of chiefs of central bank branches posted on the PBOC's website Aug. 4.

Futures on the S&P 500 index were little changed today. The measure advanced 1.1 percent last week, its biggest gain in three weeks, as central banks vowed to maintain stimulus and data showed economic growth beat projections in the second quarter.

U.S. employers added 162,000 workers to payrolls in July, the least in four months and below a median economist estimate of 185,000, data Aug. 2 showed.

Exporters Fall

Japanese exporters to the U.S. declined, with Mazda losing 4.1 percent 423 yen. Komatsu Ltd., a construction-machinery maker that gets about 30 percent of its sales in the Americas, slid 0.5 percent to 2,214 yen.

Toyota Motor Corp., Asia's biggest carmaker, dropped 1.1 percent to 6,360 yen even after saying on Aug. 2 that net income almost doubled to 562.2 billion yen ($5.7 billion) last quarter as U.S. sales rose and the weaker yen boosted overseas profit.

Fonterra dropped 3.7 percent to NZ$6.86 after the New Zealand comopany warned of a contaminated ingredient, prompting China and Russia to suspend imports of its milk powder.

Chinese dairies advanced. Biostime International Holdings Ltd., a supplier of baby products, surged 9.8 percent to HK$43.35 in Hong Kong. China Modern Dairy Holdings Ltd., the nation's largest raw-milk producer, jumped 9.8 percent to HK$2.59.

Tianneng Power fell 13 percent to HK$3.25 when trading of its shares was halted. The company said it was "verifying the facts with all the relevant bodies" after unspecified reports on one of its factories. CCTV on Aug. 2 reported pollution at a plant in Jiangsu province.

Of the 294 companies on the MSCI Asia Pacific Index that have posted results since July 1 and for which estimates are available, 51 percent exceeded estimates, according to data compiled by Bloomberg.

Lloyds Banking Sells Spanish Retail Operations

LONDON -- The shares of Lloyds Banking  (LSE: LLOY  ) (NYSE: LYG  )  gained 0.5 pence to 53.5 pence during early London trade this morning after the FTSE 100 member said it would sell its Spanish retail operations to Banco Sabadell.

Lloyds said the disposal would involve its retail and private banking business as well as a local investment management business in Spain. The bank also confirmed that the operations being sold consisted mostly of mortgages and deposits, and that its Spanish corporate banking division was not included in the transaction.

Under the sale agreement, Lloyds will receive 53.7 million shares of Banco Sabadell, equivalent to about 72 million pounds, or 1.8% of the Spanish bank's share count. An additional consideration of up to 17 million pounds may be payable in cash within the next five years dependent on mortgage book margins.

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As of 31 March 2013, the total assets covered by the sale were approximately 1.5 billion pounds, comprised almost entirely of customer lending, and customer deposits were approximately 670 million pounds.

The Spanish operations to be sold reported a loss of around 43 million pounds during 2012, and the deal is expected to create a 250 million-pound loss within the group accounts of Lloyds.

Lloyds said the transaction was in line with the group's strategy of "rationalising its international presence while ensuring best value for shareholders."

This morning's news comes less than a week after Lloyds announced it would float TSB Bank on the stock market. Lloyds is set to reveal its first-quarter results tomorrow and will hold its annual general meeting on 16 May.

If you own Lloyds shares and are looking for alternative buying opportunities, this exclusive wealth report reviews five particularly attractive possibilities.

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Home Depot Stock Has Gotten Ahead of Itself

It's pretty clear at this point that the housing market is recovering, albeit slowly. Housing values are ticking up. Sales volumes are increasing. And stock in homebuilders and companies like Home Depot (NYSE: HD  ) has responded in kind. But in the latter case, at least, it appears investors may have gotten ahead of themselves.

Consider the dividend yield on Home Depot stock. At 2.2%, there's no question that it's generous relative to the 10-year Treasury bond, which is paying a paltry 1.78%. But the same cannot be said when it's compared to more analogous securities. According to The Wall Street Journal, for example, the dividend yield on the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is 2.78% -- nearly 60 basis points higher than Home Depot's.

HD Dividend data by YCharts.

Mind you, the yield isn't low because the company hasn't increased the quarterly payout on its common stock. As you can see in the chart above, Home Depot has done so consistently over the past 10 years. Most recently, in February of this year, it hiked the quarterly distribution by an impressive 34%, in addition to announcing a $17 billion repurchase program.

Home Depot stock is similarly expensive if measured against the price-to-earnings ratio. Trading at 23.71 times earnings, it's the most expensive it has been in nearly a decade. "Even during 2006 and 2007," Motley Fool blogger Timothy Green notes, "when the company saw rapid revenue growth to $90 billion per year, the stock was trading with the P/E ratio below 15."

HD P/E Ratio TTM data by YCharts.

What explains the dear price? The explanation is simple: As the housing market picks up, investors are increasingly optimistic about any company that benefits from it, and this optimism has outpaced the growth in Home Depot's fundamentals -- particularly the retail giant's earnings (which serve as the denominator in the P/E ratio).

HD Total Return Price data by YCharts.

The bottom line here is that unless you already own Home Depot stock, you might want to think long and hard before establishing a new long position at its current valuation.

The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only the most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the "3 Companies Ready to Rule Retail" in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

Pentagon Watch: Where Did Your Tax Dollars Go This Week?

The U.S. military has a reputation as a somewhat secretive organization. But in one respect at least, it ranks among the most "open" of our government agencies. The Department of Defense is positively sunshine-y in the frequency and clarity with which it describes the contracts it issues to private companies, updating them daily on its website.

 So what has the Pentagon been up to this week?

The Department of Defense requested $614 billion in total funding for the current fiscal year 2013. Spread over 52 weeks, that works out to $11.8 billion in spending. And with about 47% of that money, historically, going to personnel costs, that leaves about $6.2 billion a week to spend on military hardware (planes, trains, and main battle tanks), infrastructure projects (such as resiting a VA hospital, dredging a river, or constructing an air base), services (engineering and software design work), and military supplies.

Last week, the Pentagon awarded contracts worth a combined $6.226 billion -- putting it right on target to spend all the money it's been allotted for this fiscal year, "sequester" notwithstanding. Where did the money go?

To Russia with cash
Well, probably the biggest news of the week, and certainly the most controversial, was a contact issued Monday to pay a Russian defense contractor, Rosoboronexport, $572.2 million (later revised down to $553.8 million) for 30 Russian Mi-17 transport helicopters -- that we will promptly hand over to the Afghan National Securities Forces. This follows on a decision one week earlier to hand a Brazilian company, Embraer (NYSE: ERJ  ) a $1 billion contract to build fighter planes for the Afghan Air Force.

Afghan military Mi-17 helicopters in flight. Source: Wikimedia Commons.

In one respect, therefore, it appears that sequestration of defense spending may be having an effect on U.S. defense contractors -- it's forcing the Pentagon to be more careful about how it spends its cash, and to give more business to low-cost defense contractors from other countries.

Nor is the Pentagon the only actor pinching its pennies. Last week, Boeing (NYSE: BA  ) also headed to Brazil to sign a deal cooperating with Embraer on the global marketing of the latter's KC-390 aerial refueling tanker.

Heavily into helicopters ...
Boeing also made news this week when it landed its second multibillion-dollar contract in as many weeks, for the sale of Chinook heavy lift helicopters. Two weeks ago, the U.S. Army ordered up $4 billion worth of the whirlybirds. This week, Boeing won a $3.4 billion contract to sell more Chinooks to the militaries of Turkey and the United Arab Emirates, with the U.S. government acting as the middleman.

U.S. Army CH-47 Chinook. Source: Wikimedia Commons.

... and softly into software
Another big winner for the week was Microsoft (NASDAQ: MSFT  ) . The Pentagon granted Mr. Softy a contract worth up to $412.2 million for Microsoft Blue Badge cardholder support. This contract, whereby Microsoft will assist the Defense Information Technology Contracting Organization with software design work, costs a lot -- in part because Microsoft is being asked to license access to its proprietary source code as part of the work.

Galaxy still flying
A smaller contract win, but still significant, was Lockheed Martin's (NYSE: LMT  ) receipt of a $27.9 million indefinite-delivery/indefinite-quantity contract to do software work upon Air Force C-5 Galaxy transport aircraft. The Pentagon has caught some flak over continued support for the Galaxy, whose basic design is now close to 45 years old. But the Galaxy remains the largest transport aircraft in the U.S. fleet, capable of carrying a half-dozen MRAPs, or five combat helicopters within its capacious cargo hold.

U.S. Air Force C-5 Galaxy hold. Source: Wikimedia Commons.

The Air Force is currently in the process of upgrading more than four dozen Galaxies under a comprehensive Reliability Enhancement and Re-engining Program. Once completed, the planes will be dubbed "Super Galaxies" -- C-5Ms, equipped with more power, a faster rate of climb, and the ability to operate off of runways 30% shorter than their predecessors require.

Opportunities on the horizon
That's about it for the highlights of last week's Pentagon contracting news, but now what should we be on the lookout for in the future? Well, probably the most interesting bit of news on that front was the announcement Thursday that the U.S. Defense Security Cooperation Agency has informed Congress of plans to sell $4 billion worth of services and equipment to the government of Saudi Arabia, as part of a plan to modernize the Saudi Arabian National Guard forces.

The contractor in charge of the project, Vinell Arabia, isn't exactly a household name here. But as it turns out, Vinell is a subsidiary of marquee defense contractor Northrop Grumman (NYSE: NOC  ) .

The upshot: Northrop Grumman's about to land a contract worth 16% of its annual revenue haul for a whole year. The contract hasn't been announced yet. No one knows about it -- except that now, you do.

Boeing operates as a major player in a multitrillion-dollar defense market in which the opportunities and responsibilities are absolutely massive. However, emerging competitors and the company's execution problems have investors wondering whether Boeing will live up to its shareholder responsibilities. The Fool's premium research report on the company provides investors with the must-know issues surrounding Boeing. They'll be updating the report as key news hits, so don't miss out -- simply click here now to claim your copy today.