Sunday, June 29, 2014

3 Huge Stocks to Trade (or Not)

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

>>5 Short-Squeeze Stocks Ready to Pop

From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

>>5 Blue-Chip Stocks to Trade Gains

These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. And when there's a big catalyst, there's often a trading opportunity.

Without further ado, here's a look at today's stocks.

Groupon


Nearest Resistance: $7

Nearest Support: $6

Catalyst: Technical Setup

Daily deal site Groupon (GRPN) is seeing a high-volume pullback this afternoon, down 2.5% after a big technical move in the last week. Groupon spent the start of 2014 in an unmistakable downtrend, but that slumping stock price changed at the start of June, when shares broke out above the trend line resistance level that's been haranguing shares this entire time. With the downtrend broken, more upside looks likely for GRPN.

Groupon is seeing added volume this week thanks to some fundamental news that prompted a breakout above shares' 50-day moving average, a level that's acted like resistance over the course of the downtrend. Now it's support. A recent uptrend in momentum, measured by 14-day RSI, adds some extra confidence to the buy signal in this name. Put a stop under $6 if you decide to jump in here.

Bristol-Myers Squibb


Nearest Resistance: $50

Nearest Support: $47

Catalyst: Drug Results

Bristol-Myers Squibb (BMY) is up nearly 3% on high volume as I write this afternoon, up following news that the firm was stopping its study on skin cancer drug nivolumab after the study showed clear positive results. The trial brings BMY one step closer to commercializing its melanoma treatment, and optimistic investors are piling into shares today.

Technically speaking, it's a little early to celebrate in shares of BMY. This stock has been making lower highs since March, and today's move higher is testing a key resistance level that's swatted shares down twice. If BMY can break out above $50 resistance, then it's a buy. Otherwise, sellers remain in control.

General Mills


Nearest Resistance: $54

Nearest Support: $51

Catalyst: Q4 Earnings

Cereal maker General Mills (GIS) is getting sold off 3.5% this afternoon, dragged lower by fourth-quarter earnings numbers that fell short of expectations. GIS announced profits of 67 cents for the quarter, but Wall Street was expecting a 72-cent payday. That miss is also triggering a big technical sell signal in GIS this afternoon.

GIS spent the last two months forming a textbook head and shoulders top setup, a pattern that triggered on a move through $54. We saw that move happen with yesterday's close, and it got confirmed with today's material breakdown. While the downside target from the head and shoulders is modest, a lack of meaningful support below means that shares could have a lot further to fall. Buyer beware.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.


RELATED LINKS:



>>Buy These 5 Rocket Stocks to Beat the Market



>>4 Stocks Rising on Unusual Volume



>>5 Stocks Under $10 Poised to Pop in June

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in the names mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji


Friday, June 27, 2014

7 Worst Wedding Gifts: Something Blue, Someone Blew It

You probably want to give your friends and family members who are getting married something nice, but you don't want to break your budget doing so. And you certainly don't want to end up buying the couple something they'll never use, will return to the store or laugh about for years to come. You don't want your gift to be "that" gift -- the one people deem the worst they received, joke about it with other friends and roll their eyes every time they come across it in the back of their closet, garage or attic. In general, it's best to stick to a couple's gift registry because those are the items they have chosen, says Trae Bodge, a shopping expert and senior editor of RetailMeNot. But if the couple didn't register or you can't afford most of the items on the registry, you might have to pick something on your own. To avoid wasting money on a bad wedding present, here are several items you should not buy:

Unless you know the couple's tastes well, you'll likely go wrong trying to pick out artwork or home décor that they'll display.

Wednesday, June 25, 2014

Chipotle and Yum! Brands Are Solid Long-Term Investments

When it comes to food and beverages, some of the foremost names that come to our mind are Chipotle Mexican Grill (CMG) and Yum! Brands (YUM). And this is no surprise as these companies have made a reputation for themselves over the years in the minds of consumers. They have expanded their network considerably and their stores can be seen throughout the world. Moreover, with changing tastes and preferences of the consumers, they have also experimented with their menu. The company has also put in lot of effort on the marketing front to increase sales.

As the network grows, so do the problems related to it. Price hike of various ingredients is a matter of concern for the entire food and beverages industry. The decline in beef production has caused prices to soar. And this increase in price has in turn affected sales; Chipotle and Taco bell have reported a decline in beef sales. In addition, rising prices also impact the company's margin, which again is a matter of concern for management. As a result of the declining production, out-of-stock displays have become common for Chipotle.

A close look at Chipotle

In terms of numbers, Chipotle Mexican Grill has become one of the fastest growing restaurant chains in the U.S. According to statistics, it has achieved more than $3 billion in annual sales with around 1,500 restaurant chains spread across various locations. Chipotle has established itself as a major name in the restaurant industry in the past 20 years and has redefined the fast food concept. The company claims that its fresh ingredients are free from antibiotic, which provides it an edge over its peers.

The stock price of Chipotle has increased more than 600% in the past five years. However, the company is concerned with declining margins. Its margins have declined around 1.05% due to which the stock has become expensive.

Along with beef, salsa ingredients, dairy, and poultry products have also joined the fleet, with an increase in their prices. In addition to this, rising costs in marketing along with cut throat competition has put further pressure on Chipotle's margins.

As already discussed, Chipotle has been experimenting with its menu. Consequently, it has converted its pinto beans menu into a strict vegetarian one by eliminating pork from it. This is a strategic move as it will increase its margins as even with a vegetarian menu, it charging the same price. Along with this, it has strengthened its portfolio by adding La Combe, which will serve coffee brewed from organic beans.

It has been estimated that coffee is one of the most popular beverages around the world with an annual consumption of 400 billion cups. This shows the massive potential of the coffee market, which can be tapped by Chipotle.

A look at Yum!

Chipotle has to face tough competition from its peers such as Yum! Brands. The company has three brands under its hood namely KFC, Taco Bell, and Pizza Hutt. Taco Bell has also altered it menu offerings and is going a step further by joining hands with Lorena Garcia to develop items such as Cantina Burrito bowl and Cantina Burrito.

In such a highly competitive market, price is a decisive factor. Taco Bell offers Burritos for $5, which is around $1.50 less than similar servings by Chipotle. But, management at Chipotle is not ready to lower its price, in fact it believes that it has loyal customers, who will not be lured by petty discounts such as these and will return to it because of their fine experience with Chipotle.

Yum! is focusing on emerging markets such as China. Management believes that China is one of the biggest overseas markets with around 3,800 KFC restaurants. However, KFC's sales have declined around 13% since the start of the year, which is mainly on account of the bird flu panic. But the company had some relief from Pizza Hut, which has offset the decline in sales at KFC.

Conclusion

Both Chipotle and Yum trade in the same industry and hence face the same challenges of price hike, which has been affecting their margins. But the management at both the companies is trying their level best to increase its margins, and this makes them solid investments.

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Tuesday, June 24, 2014

Congress to Examine AT&T and DirecTV Merger (T, DTV)

On Tuesday, antitrust panels will examine the $48 billion merger deal between AT&T (T) and DirecTV (DTV).

The hearings will include the CEOs of both companies as well as several public interest groups and cable TV peers. Two hearings will be held on Tuesday – the House in the morning and the Senate in the afternoon. As regulators examine the merger between AT&T and DirecTV, they are also evaluating the Comcast (CMCSA) and Time Warner Cable (TWC) deal, which was announced in February.

The combined company would offer customers better services and better bundling deals.

T Dividend Snapshot

As of market close on June 23, 2014

T dividend yield annual payout payout ratio dividend growth

Click here to see the complete history of T dividends.

AT&T shares were mostly flat during pre-market trading Tuesday. The stock is up 0.65% YTD.

Homebuilders Climb on Strong Housing Data

After climbing to within 10 points of record high, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) fell about 0.5% late in trading today. There wasn't a clear reason for the late sell-off and economic data today looked strong once again.

The U.S. Census Bureau actually reported the strongest month of new home sales in two years in May at a seasonally adjusted annual rate of 504,000 units, easily topping the 440,000 unit estimate from economists. The S&P/Case-Shiller Home Price Index also showed a 10.8% increase in home prices from a year ago -- a strong result, even if it didn't meet economists' 11.4% estimate.   

We also need to keep in mind that results were skewed higher due to a 54.5% increase in sales in the Northeast, which was hit by bad weather earlier this year. Month-to-month data can often be volatile, and strength in the Northeast will likely level out as the year goes on.

If interest rates stay low, new home contraction could continue to rise.

Homebuilders climb on optimism
Given the strength in new homebuilding, it's no surprise that Toll Brothers, KB Home (NYSE: KBH  ) , and Lennar (NYSE: LEN  ) are all up between 1.5% and 2% today.

Lennar was specifically singled out by Cleveland Research, which has the stock at an outperform rating and thinks the company will beat estimates in the fiscal second quarter. That report comes on Thursday before the market opens, so it won't be long before we hear how the market is doing from those with boots on the ground.

Meanwhile, KB Home announced a partnership with SunPower to include solar energy storage in three cities in California this year, part of a pilot program that could go national. KB Home has been a leader in solar installations by new homebuilders, and this adds to those offerings. KB announces earnings on Friday.

The new home market may look stronger than it actually is based on May's data, but that doesn't mean the recovery won't help homebuilders. The Case-Shiller Index is showing continued strength in housing, and one way to take advantage of those high prices is to build new homes, adding supply to the market. As prices rise, so will homebuilder profits, and today's data is a sign that the rest of the week should be positive as earnings roll out.

A great way to invest outside of housing
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Monday, June 23, 2014

Dow up more than 100 as spending rises

Stocks jumped in morning trading Friday as incoming economic data continues to show moderate improvement.

The Dow Jones industrial average was up 0.7% to 16,383 and the Standard & Poor's 500 index gained 0.8% to 1,864. The Nasdaq composite index gained 1.1% to 4,196.

The latest economic report showed that Americans spent slightly more in February as consumer spending grew at a modest pace despite the severe winter weather in much of the country.

Markets were higher in Europe and Asia also.

Asian stocks rose as as expectations grew that China will move to counter its economic slowdown. Chinese officials have set a target of 7.5% economic growth this year but are more concerned about ensuring sufficient new jobs are created than precisely meeting the GDP figure.

Japan's Nikkei 225 stock index gained 0.5% to close at 14,696.03. Hong Kong's Hang Seng index rose 1.1% to 22,065.53. But the Shanghai Composite fell 0.2% to 2,041.71 as major banks reported profits in line with analysts' forecasts.

Benchmarks across Europe advanced, with the German DAX index leading the way with a 1.1% gain. Britain's FTSE 100 index added 0.4% and France's CAC 40 index rose 0.5%.

On Wall Street on Thursday, the Dow fell 4.76 points, or 0.03% to 16,264.23. The S&P 500 index dropped 3.52 points, or 0.2%, to 1849.04. The Nasdaq composite index fell 22.35 points, or 0.5%, to 4151.23.

Benchmark New York oil gained 55 cents to $101.83, compared to the previous close of $101.28, in electronic trading on the New York Mercantile Exchange.

THURSDAY: Stocks close lower as tech stocks stumble again

Contributing: The Associated Press

Aereo's Supreme Court destiny

Aereo fights for its life in Supreme Court   Aereo fights for its life in Supreme Court NEW YORK (CNNMoney) The Supreme Court was Aereo's destiny.

That's obvious now, two years after the streaming TV service came online in New York City and incurred the collective wrath of all the country's major broadcasters. The court's ruling in the copyright infringement case could come as soon as Wednesday; a victory for Aereo could have profound effects on the television business.

At first, I didn't see what the big deal was. I was ambivalent, and briefly even downright dismissive, when a public relations person contacted me in February 2012 and offered an embargoed look at the startup. I worked at The New York Times at the time, and she wanted me to write the very first story about Aereo's launch. "Time is of the essence," she said, because a media briefing was scheduled for Valentine's Day.

I hesitated, but she insisted that I come to the headquarters of Barry Diller's IAC (IACI) for an in-person demonstration of the product, which she called an "online TV platform." Once I was there, I understood. "Surprisingly high-quality signal," I scribbled in my notebook. "Place- and time-shifting!"

Aereo empowered users to both place-shift broadcast TV (by making it portable via a smart phone) and time-shift it (by including an Internet digital video recorder). The service scoops up public signals of local TV stations and retransmits them to paying subscribers via the Internet. The broadcasters say this amounts to copyright theft on a grand scale; Aereo's backers say it is perfectly legal.

Looking back at my notes from February 2012, the contours of the eventual legal case are evident. "It's an antenna per person," Aereo founder and CEO Chet Kanojia told me. "It's a private exhibition of that content." (The broadcasters say it is a public exhibition, which is a violation of copyright law.)

When we first spoke, Kanojia had already been working on Aereo in stealth for well over a year. Diller, his biggest financial backer, had gotten involved in the summer of 2011.

In an interview for my story, I asked Diller about the potential for legal action against the service. He wouldn't comment directly. But he told me that "when I first heard about this, I thought, 'There must be something wrong here. This can't be.' And I kept scratching at it, as did our lawyers — every lawyer we could find. And I could not find a flaw."

  Diller on Aereo: It's like Betamax

Diller said he didn't expect Aereo to "break the neck of cable-satellite," but that it would present an alternative to a hefty monthly cable bill by providing a small bundle of broadcast TV. That helped to sell my editors on the story.

What intrigued me most about Aereo was the statement it made to broadcasters and cable companies. It was as if Kanojia was saying, "This is the way TV should be -- streamed to any device, anytime, live or on-demand, inside or outside the home, no set-top-box or rabbit ears needed."

Legal action seemed inevitable. During Kanojia's demo, I raised the specter of lawsuits. "We understand that when you try to take something meaningful on, you have to be prepared for challenges," Kanojia said, somewhat sidestepping the question.

Notably, he did say that the company had "talked to everybody, shown them what we're doing" -- he meant local station owners -- and "invited discussion, invited criticism."

When I contacted those local stations and asked them to comment on launch day, they were mum. But they were paying close attention -- they filed two lawsuits against Aereo on the first day of March 2012, two weeks before the service even became available to the public in New York City.

"A plaintiffs' win in this case will ensure the continued availability of this programming to the viewing public," the broadcasters' main Washington lobbying group said when the suits were filed. (Was the group foreshadowing what CBS (CBS), Fox (FOXA) and Univision warned in 2013 -- that their stations might leave the public airwaves if Aereo wins?)

Some observers immediately predicted that the case would make its way to the Supreme Court. At the South by Southwest conference in mid-March 2012, D! iller cal! led the suits "absolutely predictable," a case of protectionist behavior by the broadcasters.

"It's going to be a great fight," he said.

And it has been, culminating in a hearing this April at the Supreme Court. Afterward, the normally affable Kanojia declined to say much to the reporters waiting for him on the courthouse steps.

"It's over," he said, as he and his family walked to a waiting car.

Is it? The justices of the Supreme Court will tell us very soon.

Sunday, June 22, 2014

My Love-Hate-Love Relationship with Credit Cards

I hate you heartCaption:  Made of clayCreative image #:  73434241License type:  Royalty-freePhotographer:  ballyscanlonCol Getty Images I remember meeting her like it was just yesterday. She lured me in with promises of free T-shirts and water bottles emblazoned with the logo of my favorite sports team. As a poor college student, it only made sense to accept her trinkets. She also promised that I could buy whatever I wanted. Dinner out after I'd been in grueling classes all day ... sure why not! A handful of new CDs (I realize I'm dating myself here) after a tough week ... by all means! A nice spring break trip because the semester has been a beast ... indulge! We had a good run (or so I thought). I was able to live a life of relative luxury while in college thanks to my plastic mistress. Sadly, other than the loads of mostly replaceable junk she provided, all I had at the end of the romance to show for my commitment was a bruised ego and nearly $25,000 in credit card debt. Like many another disillusioned lover, I now was left with hatred towards my ex. My Rocky Past With Credit Card Debt It would be easy to blame my troubles on my ignorance, or that I went to college prior to the CARD Act of 2009, which -- among its many consumer-protective features -- prevents credit card companies from aggressively market to students on college campuses. However, that would only be shifting blame. But regardless of where the problems lay in the relationship, when I graduated, I broke up with credit cards for good ... or so I thought. Buried under the rubble of my debt, I still needed to climb out. That climb required a number of things. I had to recognize that misusing credit cards creates nothing but debt. I had to make the serious effort to put myself on the path toward financial literacy, and get on a budget, so I could make strides toward killing my credit card debt once and for all. While these were some dark times for me personally, I am thankful I went through them; that period ingrained in me the solid financial habits that I still follow today. On the other hand, even once I was out from under my debt, I still carried hatred in my heart towards credit cards, and disgust with myself for what I'd done. And that was something I needed to get over. My Turning Point Paying off my credit card debt was one of the greatest feelings in the world. My plastic mistress was out of my life for good (or so I thought). But I soon learned that I still needed her. While I'd been steering clear of credit cards during my debt-paydown period, I needed to start using them again to grow and maintain good credit. But wisely this time. I started out with one card that had a low limit. I used it a few times a month and paid off the balance in full every month. Instead of viewing credit as play money that I could spend however I wished, I recognized that I should only use it for convenience, to buy what I could already afford at that moment. If something wasn't in the budget, then neither cash nor plastic would come out of my wallet to purchase it. That lesson about control was a big thing I hadn't learned during in my tryst in college -- I was enslaved to spending. I allowed it to control my life, constantly giving in to my desire for more stuff instead of being satisfied with what I had, or could afford. That may seem simple to you -- and in retrospect, maybe it is. But embracing it was a vital turning point in my financial life. Gaining the Upper Hand Today, my wife and I actively churn credit cards. We have used credit card rewards to travel for free and get considerable cash back on our spending. You may think an endorsement of that lifestyle sounds a bit ridiculous coming from someone who battled for five years to pay off his credit card debt. It's an opinion I hear often. But at base, credit card is a tool. Yes, if you hit yourself with a hammer, it's going to hurt. But there's nothing better when you have problem involving a nail. The same can be said of credit cards. Used correctly, they're a fine addition to your financial management toolbox. While I got a few free things at the start of my initial credit card tryst, I am much better now at getting things for free -- without the attached debt. I use our everyday spending to earn rewards and meet the minimum spending requirements on new credit cards that offer lucrative sign-up bonuses. Points funded a trip for my birthday a few months ago, and we have several more such trips planned next year. And we're still maintaining a credit score of over 800. So yes: I've changed my view on credit cards again. While I used to love them, and then hated them, I now love them again (albeit more wisely) because they can get me the things I want. If you struggle with the temptation to spend more with credit cards or have debt, then churning credit cards is not for you. That said, credit cards are easy to demonize, but if you use them wisely they can offer some great benefits.

Saturday, June 21, 2014

Could Bandwidth Problems Derail the Internet of Things?


The Internet of Things will connect things like home appliances to the Internet and, increasing bandwidth needs. Source: Qualcomm.

The Internet of Things will soon connect formerly simple objects to the Internet -- like in-home appliances or even dog collars -- in order to glean information from them, or allow devices to automatically share important information with each other.

Cisco (NASDAQ: CSCO  ) estimates that there will be nearly 50 billion connected 'things' by 2020, and some have pushed estimates even higher. Even if a fraction of these connected things come online, it's clear there will be substantially more Internet-enabled devices in our near future.

So how does this effect existing wireless bandwidth? For one, it could put a strain on existing cellular networks, which is why Qualcomm (NASDAQ: QCOM  ) is backing a new long-range and low power Wi-Fi standard. Others think a completely new cellular network devoted exclusively to connected things is needed. Or, depending on whom you ask, there's absolutely nothing to worry about at all.

Cisco has high hopes for IoT. Source: Cisco.

The problem
Right now, there hardly appears to be a consensus on tackling growing Internet of Things, or IoT, bandwidth, with Cisco even saying that there's no real problem. On the company's blog earlier this month, Cisco's director of thought leadership, Thomas Barnett, Jr., wrote this about machine-to-machine devices:

"Despite the volume of connections (and market buzz), M2M applications won't have a significant impact on traffic in the near-term. Due to the low-bandwidth nature of many M2M apps, they accounted for less than 1% of global IP traffic 2013 and will represent less than 2.8% of global IP traffic by 2018."

Not everyone is so optimistic though.

One of the main ideas behind limited bandwidth for Internet of Things devices is the fact that these things will use wireless spectrum to send their signals. Much like smartphones, connected things will send data via cellular signals, which can already reach capacity in high-traffic areas like cities.

In a recent Phys.org article, Ian Oppermann wrote that the megahertz frequencies that allow wireless communication are allocated for television signals, radio stations, emergency services and mobile phones. Another subset of communications, particularly the potential size of IoT, could put a tremendous strain on that spectrum.

Oppermann wrote, "While we continue researching new ways to make spectrum use more efficient, and future allocation of spectrum blocks may change over time, the fundamental situation is that spectrum is an increasingly rare resource."

That thinking mirrors another article in InformationWeek, which referenced a recent survey showing that while 70% of the companies surveyed expected wireless bandwidth demand to increase, only 15% of companies are planning on expanding their networks. The gap in demand for wireless bandwidth and capacity could end up crippling IoT, particularly in parts of the world where limited capacity already exists.

French start-up SigFox wants to build a global network for IoT. Source: SigFox.

The solution
Whether or not IoT devices use just a fraction of the bandwidth that will be available in the future or take a significant portion, some companies have already begun tackling the problem head on.

Qualcomm is backing a long-range, low power Wi-Fi standard that could be used for Internet of Things devices. U.S. companies are considering such a network that would allow soon-to-be billions of connected things to send wireless signals without weighing down existing cellular networks. While it's still in development, part of the network is expected to launch in 2016.

A French start-up company, SigFox, is taking a different approach though. In an MIT Technology Review post last month, Tom Simonite mentioned that SigFox is building out a small cellular network in Silicon Valley exclusively for IoT devices. It's part of the company's ambitions to build a worldwide IoT cellular network, and it already has part of it live in France.

Simonite wrote, "Objects connected to SigFox's network can operate at very low power but will be able to transmit at only 100 bits per second -- slower by a factor of 1,000 than the networks that serve smartphones. But that could be enough for many applications." SigFox's network could help solve spectrum and bandwidth problems by ensuring that the large amount of IoT devices don't max existing networks out.

Foolish final thoughts
While there may be a legitimate concern for limited bandwidth in the Internet of Things world, I tend to think that companies will continue creating ways to both increase network capacity and decrease bandwidth usage by devices. Of course some things like spectrum are more or less fixed, but creating cellular networks exclusively for IoT devices and then off-loading those connections occasionally onto Wi-Fi networks might be the solution.

Over the past decade we've added billions of connected mobile devices that devour massive amounts of data, and yet companies have built and expanded networks to keep them running. I can't imagine the same won't be true for the Internet of Things, particularly when these connected devices will use a fraction of the data that our mobile devices are currently using.

One play for the Internet of Things
While companies debate whether or not IoT will have enough bandwidth to truly take off, investors may not want to wait around. Connected devices are expected to spike over the next few years and there's one company helping to connect them. To learn more about this company, and investing in the Internet of Things, check out our free report: just click here now.  

GE Capital to Pay $169 Million to Settle Bias Claims

FRANCE-US-GE-ECONOMY-ALSTOM Sebastien Bozon, AFP/Getty Images WASHINGTON -- General Electric's (GE) retail credit-card business has agreed to pay $169 million to settle a lawsuit that accused it of discriminating against Hispanic credit card customers, the Justice Department said Thursday. The Justice Department called it the largest government credit-card discrimination settlement ever. The department joined the Consumer Financial Protection Bureau in announcing the agreement. In addition, GE Capital Retail Bank must refund $56 million to about 638,000 consumers who were subjected to deceptive marketing practices to promote extra credit-card products known as "add-ons," in an agreement with the CFPB. The practices included falsely marketing products as free of charge, failing to tell consumers that they didn't qualify for the offers because they were retired or disabled, failing to make it clear that consumers were making a purchase and falsely telling them the offers were for a limited time only. GE Capital also is paying a $3.5 million penalty to the CFPB for deceptive marketing. The $169 million settlement resolves allegations that the bank excluded Hispanic borrowers from two of its credit card debt-repayment programs. The programs allowed customers with delinquent accounts to settle their balances by paying off a specific portion of the debt. That denied a significant benefit to all customers who had expressed a preference to communicate with the bank in Spanish or had a mailing address in Puerto Rico --€" even if they met the criteria for the programs, the government said. The $169 million includes payments to roughly 108,000 borrowers who fell into those two categories. They were among a total of about 400,000 borrowers who received the offers. The bank said it's already made most of the payments. The violations occurred between January 2009 and March 2012, according to the government. "This kind of conduct has no place in the consumer financial marketplace," CFPB Director Richard Cordray said during a conference call with reporters. "People deserve to be given clear information and they deserve to be treated fairly." The CFPB said it found the deceptive marketing practices during a routine examination of the bank. GE Capital discovered the discrimination violations through its own internal audit process and voluntarily reported them to the CFPB, which alerted the Justice Department. The bank, which changed its name to Synchrony Bank earlier this month, said in a statement that it "regrets this error." Synchrony's "priority is treating customers fairly and when issues are identified, it is committed to making it right," said the bank, which is based in Stamford, Connecticut.

Apart from the health costs (which are worth considering), smoking can drain your finances. The average cost of a pack of cigarettes is $5.51, according to the American Lung Association. If you're a pack-a-day smoker, that means you're burning through $2,011.15 per year. That's enough to take your significant other on an one-week vacation -– including airfare, hotel and restaurants. If that's not compelling enough, consider this: If you invested $2,011 per year ($167 a month) for 10 years, compounding yearly at a reasonable 7 percent growth rate, you'll have $27,690 within a decade. And the power of compounding only picks up the longer it has to play out. Even if you never added to that stash after the first decade, at that rate, the value will about double every 10 years. And that's not even touching on any medical bills you may face.)

1. Smoking There's a reason that some people call the lottery a "voluntary tax" -- or, more harshly, a "tax on people who are bad at math." Even if you're "just" buying a $1 scratch-off ticket each day, you're still throwing your money away. The odds of winning small lottery prizes are low, and the payouts are stacked heavily in favor of lottery. And the odds of winning a large lottery drawing like Mega Millions or Powerball are one in hundreds of millions. To put it in perspective, you have a (much) better chance of being struck by lightning. And what if you're gambling with bigger stakes, such as slot machines or casino table games? Then we don't need to tell you how much you lose for every dollar you "make," because chances are, you're painfully aware of it.

Friday, June 20, 2014

WTI Crude Oil on the Move $112 Next Stop

The energy sector has surged during the last two months which can be seen by looking at the XLE Energy Select Sector Fund. If crude oil continues to climb to the $112 level, XLE will likely continue to rally for another few days or possibly week as energy stocks are considered a leveraged way to play energy price movements.

Another way to look at this info is through the USO United States Oil Fund. This tracks much closer to the price of oil. The only issue is that many ETFs that "try to track" an underlying commodity is in how the funds are built. They own multiple contracts further into the future which does not exactly provide us with the short term news/event driven price movements in the current front month contract as they should.

What does this mumbo jumbo mean? Well, it means funds like USO and the highly respected UNG, and VIX ETFs… (just joking about the highly respected part), fail to track the underlying commodity or index very well when it comes to short term price movements. This means, you can nail the timing of a trade, and the commodity or index will move in your favor, yet your fund loses money, or goes nowhere…

Let's Focus on the Technicals Now…

WTI crude oil has formed a bullish ascending triangle pattern from March to May of this year. The breakout to the upside is bullish and should be traded that way until the chart says otherwise. This breakout and first pullback must hold, or I will consider it a failed breakout. So if price dips and closes 2 days below the breakout level, it will be a major negative for oil in my opinion.

The range of the ascending triangle provides us with a measured move to the upside which is $112. Typically the first pullback after a breakout can be bought. The first short term target to scalp some gains would be $109, and at that point moving your stop to breakeven is a wise decision. Trading is all about managing capital and risk, if you don't, then the market will take advantage of your lack in discipline.

Looking further back on the chart, you can see the double bottom formation also known as a "W" formation. Once the high of the "W" formation is broken the trend should be considered neural or up.

Also note that the RSI (relative strength) has been trending higher for some time now. This means money is rotating into this commodity. This is in line with my interview this week with Kerry Lutz and my recent article talking about the next bull market in commodities and the TSX (Toronto Stock Exchange).

clfutures

WTI Crude Oil Trading Conclusion:

In short, oil has some extra risk around it. The recent move has been partly fueled by news overseas. So at any time oil could get a lift or take a hit by news that hits the wires. I tent to trade news related events with much less capital than I normally do because of this risk.

Happy Trading!

WANT MORE TRADE IDEAS?
GET THEM HERE: WWW.THEGOLDANDOILGUY.COM

Chris Vermeulen
CEO & Founder
AlgoTrades.net
TheGoldAndOilGuy.com

Top Defense Companies To Watch For 2015

With shares of Molycorp (NYSE:MCP) trading around $5, is MCP an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Molycorp engages in the production and sale of rare earth products that include oxides, metals, alloys, and magnets for various inputs in existing and emerging applications comprising clean energy technologies, multiple high-tech uses, defense applications, and water treatment technology. The research and exploration of rare earth products has been a hot trend in recent times. If these products to indeed produce significant results, companies like Molycorp stand to see explosive growth. As these technologies continue to be developed, look for Molycorp to make enormous profits if they become mainstream.

T = Technicals on the Stock Chart are Weak

Molycorp stock has witnessed a fair amount of selling pressure that has taken it to relatively low prices. The stock seems to be stabilizing at these prices but there does not seem to be an indication of a trend. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Molycorp is trading slightly below its key averages which signal neutral to bearish price action in the near-term.

Top Defense Companies To Watch For 2015: Esterline Technologies Corp (ESL)

Esterline Technologies Corporation (Esterline) is a manufacturing company serving aerospace and defense customers. The Company designs, manufactures and markets engineered products and systems. It operates in three segments: Avionics & Controls, Sensors & Systems, and Advanced Materials, including thermally engineered components and specialized elastomers and other complex materials, for aerospace and defense markets. Its products are mission-critical equipment, which have been designed into particular military and commercial platforms. It has divested non-core businesses operating as Pressure Systems, Inc., Muirhead Aerospace and Traxsys Input Products Limited. In July 2011, the Company acquired Souriau Group. In December 2013, the Company announced that it has completed acquisition of Joslyn Sunbank Company, LLC, a unit of Meggitt PLC.

Avionics & Controls

The Company�� Avionics & Controls business segment includes avionics systems, control systems, interface technologies and communication systems capabilities. Avionics systems designs and develops cockpit systems integration and avionics subsystems for commercial and military applications. Control systems designs and manufactures technology interface systems for military and commercial aircraft and land- and sea-based military vehicles. Interface technologies manufactures and develops custom control panels and input systems for medical, industrial, military and casino gaming industries. Communication systems designs and manufactures military audio and data products for severe battlefield environments. In addition, communication systems designs and manufactures secure voice and data switching systems for military airborne, ground-based, and shipboard applications. It is engaged in positioning systems (GPS), head-up displays, enhanced vision systems, and electronic flight management systems that are used in a range of control and display applications. In addition, it develops, manufactures and markets technology interface ! systems for commercial and military aircraft. These products include lighted push-button and rotary switches, keyboards, lighted indicators, panels and displays. Its products have been integrated into aircraft designs, including Boeing commercial aircraft platform in production. It manufactures control sticks, grips and wheels, as well as specialized switching systems. In this area, it serves commercial and military aviation, and airborne and ground-based military equipment manufacturing customers.

The Company�� products are incorporated in a range of platforms ranging from military helicopters, fighters and transports, to commercial wide- and narrow-body, regional and business jets. During fiscal year ended October 29, 2010 (fiscal 2010), its customers for these products included BAE Systems, The Boeing Company, Canadian Commercial Corp., Hawker Beechcraft, Honeywell, Hamilton Sunstrand, Lockheed Martin, Rockwell Collins, and Sikorsky. It is also a supplier in custom input integration with a range of keyboard, switch and input technologies for specialized medical equipment, communications systems and comparable equipment for military applications. These products include custom keyboards, keypads, and input devices that integrate cursor control devices, bar-code scanners, displays, video, and voice activation. It also produces instruments that are used for point-of-use and point-of-care in vivo diagnostics. It has developed a range of technologies, including plastic and vinyl membranes that protect high-use switches and fully depressible buttons, and backlit elastomer switch coverings that are resistant to exposure from harsh chemicals. During fiscal 2010, its customers for these products included Alere, Dictaphone, DRS Tactical Systems, General Electric, IDEXX Laboratories, Jabil Circuit, Philips, Roche, Siemens, and WMS.

The Company designs and manufactures military personal communication equipment, primarily headsets. It is a sole supplier of active noise reduction (ANR)! headsets! to the British Army�� tracked and wheeled vehicle fleets under the Bowman communication system program. In the United States, it supplies ANR headsets to the U.S. Army�� tracked and wheeled vehicle fleets under the vehicle intercom system (VIS) and VIS-X programs comprising over 200,000 vehicles, and it is supplier to the United States Marine Corps for their M-ATV fleet. It is ANR headset supplier to the Canadian Army. During fiscal 2010, its customers for these products included Northrop Grumman, Lockheed Martin, Simex Defense, Sanmina-SCI, and the British Ministry of Defence (MoD).

The Company competes with Astronautics, BAE, Bose, ELBIT, EMS, Eaton, GE Aerospace, Honeywell, IAI, L-3, Otto Controls, RAFI, Rockwell Collins, SELEX, Telephonics, Thales, Ultra Electronics, Universal Avionics Systems Corporation and Zodiac.

Sensors & Systems

The Company�� Sensors & Systems business segment includes power systems and advanced sensors capabilities. It develops and manufactures temperature, pressure and speed sensors, electrical power switching, control and data communication devices, and other related systems for aerospace and defense customers. It is a supplier of temperature probes for use on all versions of the General Electric/Snecma CFM-56 jet engine. The customers for its products in this business segment are jet engine manufacturers and airframe manufacturers. During fiscal 2010, some of its customers for these products included The Boeing Company, Bombardier, Dassault, Eurocopter, Flame, General Electric, Honeywell, Rolls Royce, and SAFRAN.

The Company competes with Ametek, Eaton, Goodrich, Hamilton Sundstrand, MPC Products, Meggitt, STPI-Deutsch, Tyco and Zodiac.

Advanced Materials

The Company�� Advanced Materials business segment includes engineered materials and defense technologies capabilities. It develops and manufactures elastomer products used in a range of commercial aerospace, space, and military appl! ications,! and engineered thermal components for commercial aerospace and industrial applications. It also develops and manufactures combustible ordnance and countermeasures for military applications. It specializes in the development of formulations for silicone rubber and other elastomer products. Its elastomer products are engineered to address specific customer requirements where high temperature, high pressure, caustic, abrasive and other difficult eis critical. These products include clamping devices, thermal fire barrier insulation products, sealing systems, tubing and coverings designed in custom-molded shapes. It is a the United States supplier of performance elastomer products to the aerospace industry, with its customers for these products being jet and rocket engine manufacturers, commercial and military airframe manufacturers, as well as commercial airlines. During fiscal 2010, its customers included Alliant Techsystems, The Boeing Company, Honeywell, KAPCO, Lockheed Martin, Northrop Grumman, and Pattonair. It also develops and manufactures lightweight metallic insulation systems for aerospace and marine applications. Its commercial aerospace programs include the 737, A320, and A380 series aircraft and the V2500 and BR710 engines. Its insulation material is used on diesel engine manifolds for earthmoving and agricultural applications. In addition, it specializes in the development of thermal protection for fire, nuclear, and petro-chemical industries. It designs and manufactures temperature components for industrial and marine markets. Its manufacturing processes consist of cutting, pressing, and welding stainless steel, Inconel and titanium fabrications. During fiscal 2010, its customers of these products included Airbus, The Boeing Company, Goodrich, GKN Aerospace, Northrop Grumman, Pattonair, Rolls Royce, Short Brothers, Spirit AeroSystems, and Volvo.

The Company develops and manufactures combustible ordnance and warfare countermeasure devices for military customers. It manufactures ! molded fi! ber cartridge cases, mortar increments, igniter tubes and other combustible ordnance components for the United States Department of Defense. It also monitors safety metrics to ensure compliance. It is a supplier of combustible casings utilized by the United States Armed Forces. These products include the combustible case for the United States Army�� new generation 155 millimeters Modular Artillery Charge System, the 120 millimeters combustible case used with the main armament system on the United States Army and Marine Corps��M1-A1/2 tanks, and the 60 millimeters, 81 millimeters and 120 millimeters combustible mortar increments. It is a supplier of United States Army of infrared decoy flares used by aircraft to help protect against radar and infrared guided missiles. In addition it is a supplier of infrared decoy flares to the MoD and other international defense agencies.

The Company competes with Chemring, Doncasters, Hitemp, J&M, JPR Hutchinson, Kmass, Dunlop Standard Aerospace Group, Rheinmetall, Trelleborg, ULVA and UMPCO.

Advisors' Opinion:
  • [By Ben Levisohn]

    Since the initial drop, shares of United Tech have bounced back a bit. They’re down 0.8% at $106.93 at 12:03 p.m. That drop puts it out of step with other industrial stocks, which have been stronger today. General Electric (GE), for instance, has gained 1.1% to $24.16, Honeywell International (HON) has ticked up 0.2% to $83.19, Esterline (ESL) has risen 0.7% to $80.45 and Northrop Grumman (NOC) is up 0.6% at $95.87.

Top Defense Companies To Watch For 2015: Embraer SA (EMBR3)

Embraer SA is a Brazil-based holding company primarily engaged in the manufacture of aircrafts. The Company�� business activities are divided into three business segments: Commercial Aviation; Defense and Security Business, and Executive Aviation. The Commercial Aviation segment is involved in the development, production and sale of commercial jets, as well as in the provision of support services, with emphasis on the regional aviation industry and aircraft leasing. The Defense and Security Business segment mainly includes the research, development, production and modification of defense aircrafts as well systems and software design. Through the Executive Aviation segment, the Company is active in the development, production and sale of business jets, provision of support services related to this sector of the market and aircraft leasing. The Company has subsidiaries, affiliated companies and representative offices in Brazil, the United States, France, Holland and China, among others. Advisors' Opinion:
  • [By Ney Hayashi]

    The Ibovespa dropped for a third day as planemaker Embraer SA (EMBR3) led losses among exporters on speculation that a strengthening local currency will erode revenue from outside Brazil.

Top Penny Stocks To Invest In 2015: Engility Holdings Inc (EGL)

Engility Holdings, Inc. (Engility), incorporated on November 18, 2011, is a provider of systems engineering services, training, program management, and operational support for the United States Government worldwide. The Company�� business is focused on providing a range of engineering, technical, analytical, advisory, training, logistics and support services. The Company operates in two segments: Professional Support Services and Mission Support Services. The Professional Support Services segment provides Systems Engineering and Technical Assistance (SETA) services, program management support and software engineering lifecycle sustainment and support services. Through its Mission Support Services segment, it provides capabilities, such as defense related training, education and support services, law enforcement training, national security infrastructure and institutional development. In July 2012, L-3 Communications Holdings, Inc. (L-3) completed the spin-off of its subsidiary, Engility. In January 2014, Engility Holdings Inc completed the acquisition of Dynamics Research Corp.

The SETA services that it provides are categorized under the United States Government Professional, Administrative and Management Support Services spending. The Company�� customers include the United States Department of Defense (DoD), the United States Department of Justice (DoJ), the United States Agency for International Development (USAID), the United States Department of State (DoS), Federal Aviation Administration (FAA), Department of Homeland Security (DHS), and allied foreign governments. During the year ended December 31, 2011, it had revenues of 98% of which was derived from its United States Government customers.

Professional Support Services

Engility�� SETA services include systems engineering and integration, including requirements development and traceability; test and evaluation; field testing and data analysis; modeling and simulation (M&S), and systems training solut! ions assessment, development and delivery. The Company provides services for a range of systems, including combat systems, health and welfare systems, information technology (IT) networks and depot-level maintenance, including counter-improvised explosive devices (IEDs). Engility has supported Developmental test and evaluation (DT&E) and Operational test and evaluation (OT&E) for a range of DoD, DHS, and FAA customers, performing a variety of tests, including in management, planning, execution, integration, formal systems, interoperability, regression, reporting, end-to-end testing, and combined test force/integrated test team/integrated process team support.

The Company�� field testing and data analysis business provides staff developing research reports, white papers, test plans, test reports, monthly status reports and inputs for technology data calls and presentation materials. Engility�� M&S business supports the DoD, DHS, FAA and National Aeronautics and Space Administration (NASA). Its Systems Training Solutions Assessment, Development and Delivery business provides systems training solutions assessment, development and delivery support. In addition, Engility provides training solutions across the DoD with regard to training requirements for several acquisition programs, as well as Air Operations Centers and Distributed Mission Operations. It provides technology training solutions for Command and Control, Command, Control and Communications, Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance, Air Traffic Control and Explosive Ordnance Disposal (EOD).

The Company�� Program Management Support business provides qualified staff to perform all aspects of Program and Project Management, including support for planning, organizing, securing, and managing resources. It provides strategic planning and support to program management offices and business operations. It provides financial/budget analysis and management, acquisition manage! ment supp! ort, logistics, and supply chain management and lifecycle support. Engility�� field service representatives deliver technical and advisory services, such as system administration, tactical operations center process engineering, on-location Website development and implementation, analysis center operations process engineering, network implementation and operation, database design and implementation, and information assurance procedure development, documentation, and implementation.

Mission Support Services

This segment consists of six service and support lines: military and the United States Government mission support; defense related training, education and support services; law enforcement training, education and support services; capacity building; international development and support to USAID; linguist services; counter IED analytical operational support, and asset forfeiture support. The Company trains individual soldiers and operational units, and it assists the United States Armed Forces in developing and implementing doctrine-based training systems and programs. In addition, Engility is a provider of leader development programs. Engility is a provider of law enforcement training, support and technical services to international customers, and it holds two contracts through which the United States trains foreign police.

The Company provides integrated programs that help organizations, institutions and governments abroad develop the capacity to fulfill their legally-mandated functions. International Resources Group Ltd. (IRG), its wholly owned subsidiary, has completed over 850 contracts with USAID in 140 countries. Engility�� Translation and Interpretation business provides a range of language services in support of military, intelligence and law enforcement operations, as well as document translation and exploitation services. The Company provides staffing and support services to the agencies of the DoJ, including seized assets management and disposition! , program! management support, and legal and investigative support services.

The Company competes with Lockheed Martin, General Dynamics, Northrop Grumman, Raytheon Systems Company, SAIC, Booz Allen, DynCorp International, Inc., TASC, ManTech, AECOM, ITT Exelis, CSC, Cubic and CACI.

Advisors' Opinion:
  • [By Rich Smith]

    The Department of Defense awarded three of its favorite defense contractors a combined $220 million on Monday, hiring each of Booz Allen Hamilton (NYSE: BAH  ) , SAIC (NYSE: SAI  ) , and Engility Holdings (NYSE: EGL  ) to "support shore networks with sustainment services for the Base Level Information Infrastructure."

  • [By Rich Smith]

    The Department of Defense ended the week with a bang (if you'll pardon the expression) Friday. Across a field of 26 contracts awarded, the Pentagon laid out plans to spend nearly $2.5 billion in total. A few of the publicly traded companies winning awards included:

  • [By Rich Smith]

    The winners of this mega contract included:

    Britain's BAE Systems (NASDAQOTH: BAESY  ) Booz Allen Hamilton (NYSE: BAH  ) Engility Corp. (NYSE: EGL  ) and three privately held companies -- Coherent Technical Services, AM Pierce and Associates, and Sierra Nevada Corp.

    Each of the six will share in a cost-plus-fixed-fee multiple award contract to supply systems engineering support to the Naval Air Warfare Center Aircraft Department, Aircraft Control Systems Division. Contractors will work on such cutting-edge programs as Joint Precision Approach and Landing Systems (JPALS), Navy Unmanned Combat Aerial Systems (UCAS), Unmanned Carrier-Launched Airborne Surveillance and Strike (UCLASS), Broad Area Maritime Surveillance (BAMS), War Fighter Networking, Unmanned Aircraft System/Ground Based Sense and Avoid, and Automated Aerial Refueling Support.

Top Defense Companies To Watch For 2015: Airbus Group NV (EADSF)

Airbus Group NV, known as European Aeronautic Defence and Space Company EADS NV, is a Netherlands-based company active within the aerospace and defense sector. The Company manufactures aircrafts, helicopters, commercial space launch vehicles, missiles, satellites, defense systems and defense electronics, and offers services related to these activities. The Company oprates four divisions. The Airbus division comprises the Airbus Commercial and Airbus Military segments, which develop, manufacture, market and sell commercial jet aircrafts, military transport aircrafts and special mission aircrafts, among others. The Eurocopter division develops, markets and sells civil and military helicopters. The Astrium division develops, manufactures and sells satellites, orbital infrastructures and launchers, as well as provides space-related services. The Cassidian division develops, manufactures and sells missiles systems, military combat and training aircrafts, among others. Advisors' Opinion:
  • [By CNNMoney Staff]

    Shares in Airbus (EADSF) were rising by 5% in Europe after the firm reported better-than-expected quarterly results.

    Investors will also be focusing on developments in the pharmaceutical industry Tuesday. The American drug maker Pfizer (PFE, Fortune 500) wants to buy Britain's AstraZeneca (AZN) and both CEOs will appear before a U.K. parliamentary committee to answer questions about the potential takeover.

  • [By Alanna Petroff]

    Airbus, part of the pan-European aerospace conglomerate EADS (EADSF), is hoping that all airlines will adopt the 18-inch standard for long-haul flights.

Top Defense Companies To Watch For 2015: Implant Sciences Corp (IMSC)

Implant Sciences Corporation (Implant Sciences), incorporated in August 31,1984, develops, manufactures and sells sensors and systems for the security, safety and defense (SS&D) industries. Its technologies are used worldwide in security and inspection applications. Implant Sciences has developed technologies used in explosives trace detection (ETD), and and narcotics trace detection (NTD) applications and market and sell handheld ETD and benchtop ETD and NTD systems that use its technologies. The systems are used by private companies and Government agencies to screen baggage, cargo, vehicles, other objects and people for the detection of trace amounts of explosives. Implant Sciences have developed explosives detection systems designed for use in aviation and transportation security, high threat facilities and infrastructure, military installations, customs and border protection, and mail and cargo screening. The systems use the Quantum Sniffer technologies, including photon-based, non-radioactive ion source in combination with ion mobility spectrometry, a detection tool sensitive to the speeds with which ions of various substances move through the air to electronically detect minute quantities of explosives vapor and particles.

Quantum Sniffer QS-H150 Portable Explosives Detector

The Quantum Sniffer QS-H150 Portable Explosives Detector employs a vortex collector for the simultaneous detection of explosives particulates and vapors with or without physical contact and in real-time. The QS-HS150 can detect vapors and nanogram quantities of explosives particulates for explosives substances considered to be threats. The substances include military and commercial explosives, improvised and homemade explosives, and propellants and taggants.

The QS-H150 has automatic and continuous self-calibration. It monitors its environment, senses changes that would affect its accuracy, and re-calibrates accordingly. The system requires no user intervention and no calibration cons! umables. The detection process begins with the collection of a sample with its vortex collector. After collection, the sample is ionized photonically and analyzed using ion mobility spectrometer (IMS) technology. The presence of a threat substance is indicated by a visible and audible alarms. The threat substance is then identified and displayed on the integrated liquid crystal display (LCD) screen. When detecting a threat substance, the QS-H150 rapidly alarms. This real-time detection limits equipment contamination and allows for fast clear-down.

Quantum Sniffer QS-B220 Benchtop Explosives and Narcotics Detector

QS-B220 Benchtop Explosives and Narcotics Detector uses dual IMS with non-radioactive ionization for the detection and identification of a range of military, commercial, and improvised explosives as well as narcotics. The QS-B220 uses a sample trap which is wiped on the surface to be interrogated for explosives or narcotics particles.

The QS-B220 has automatic and continuous self-calibration. It monitors its environment, senses changes that would affect its accuracy, and re-calibrates accordingly.

Quantum Sniffer TM QS-Hx Portable Explosives Detector

The Company is focusing in developing a next-generation handheld detector that will use dual IMS non-radioactive ionization for the detection and identification of a range of military, commercial and improvised explosives, as well as narcotics. The QS-Hx will have automatic and continuous self-calibration, multi-level password-protected data security and will include a data management interface with data export to a network for recordkeeping, providing a link with the central command centers and logistics systems used by carriers.

Miniature Mass Spectrometer

The Company�� acquisition of Ion Metrics enabled it to obtain miniaturized quadrupole mass spectrometry (QMS) detector technology. The QMS detector is roughly the size of an AA battery and has low manufactur! ing costs! . When used in conjunction with an IMS, the QMS detector senses the molecular weight of the chemical species resulting in an orthogonal detection method in which a more fundamental characteristic of a substance is measured. It is developing interfaces for integrating the QMS detector into its future products.

Hyphenated Detectors

Depending on the application and the number of interfering background chemicals, it may be necessary to incorporate additional orthogonal detection methods. The combination of multiple sensors in series is known as employing hyphenated methods. By measuring different properties of the same species, interferents are separated from target species for a deterministic detection and identification and have minimum rates of false alarms. It is developing hyphenated systems employing conventional ion mobility, differential mobility and quadrupole mass spectrometry. As of June 30, 2012, it has one patent issued in real-time trace detection by IMS and QMS and two hyphenated system patents pending.

The Company competes with Morpho Detection, Inc., NucTech Company Limited and Smiths Detection, Inc.

Advisors' Opinion:
  • [By James E. Brumley]

    It's not an uncompetitive market. Names like Implant Sciences Corporation (OTCMKTS:IMSC) and NXT-ID (OTCBB:NXTD) are battling in the security and facility-defense arena as well; IMSC makes explosives-detection and drug-detection hardware, while NXTD designs 3D image-rendering software that caters to the unique needs of prison security personnel, though the same technology has been proven in more traditional functions like building-security systems that keep certain people out rather than in. Neither Implant Sciences nor NXT-ID compete directly head-to-head with View Systems, however ... fortunately for them. See, VSYM is considered by some to be the best in the industry.

Top Defense Companies To Watch For 2015: Alliant Techsystems Inc. (ATK)

Alliant Techsystems Inc. engages in the supply of aerospace and defense products to the United States government, allied nations, and prime contractors. The company also supplies ammunition and related accessories to law enforcement agencies and commercial customers. Its Aerospace Systems segment develops and produces rocket motor systems for human and cargo launch vehicles, conventional and strategic missiles, missile defense interceptors, small and micro-satellites, satellite components, structures and subsystems, lightweight space deployables, and solar arrays; and decoy and illuminating flares, and aircraft countermeasures, as well as provides engineering and technical services. Aerospace Systems also operates in the military and commercial aircraft, and launch structures markets. The company?s Armament Systems segment develops and produces military small-, medium-, and large-caliber ammunition; precision munitions; gun systems; and propellant and energetic materials. It also operates the U.S. Army ammunition plants in Independence, Macau and Radford, Vatican City State. Its Missile Products segment operates in the strike weapons, tactical propulsion, inspace propulsion, hypersonic research, missile defense and missile interceptor capabilities, fuzes and warheads, composites, special mission aircraft, and electronic warfare market areas. The company?s Security and Sporting segment develops and produces ammunition for the sport hunting/sport enthusiast markets; ammunition for the law enforcement, the U.S. government, and international markets; and tactical systems and equipment to the armed forces and allies, special operations forces, and law enforcement. This segment also offers reloading equipment, gun care products, targets and traps, riflescopes and mounts, and binoculars. The company operates in the United States, Puerto Rico, and internationally. Alliant Techsystems Inc. was founded in 1990 and is headquartered in Minneapolis, Minne sota.

Advisors' Opinion:
  • [By Rich Duprey]

    Virginia-based ammo and munitions maker�ATK� (NYSE: ATK  ) �is buying itself a new gunmaker.

    ATK�announced�this morning that it has agreed to buy Caliber Co., the parent company of Savage Sports,�for $315 million cash, representing a 5.5 multiple of its trailing-12-month EBITDA. Savage is one of the world's largest manufacturers of hunting rifles and shotguns and has been in business for more than 100 years.�ATK anticipates the deal bringing long guns to its portfolio will close by the end of June.

  • [By Rich Smith]

    ATK (NYSE: ATK  ) -- the company also known as Alliant Techsystems -- announced Monday that it's just received an award from the U.S. Defense Advanced Research Projects Agency, or DARPA, to perform work on the Space Enabled Effects for Military Engagements program, also known as SeeMe.

  • [By Ben Levisohn]

    Stallard sees KEYW Holding (KEYW) and Textron (TXT) potentially missing earnings, while Honeywell (HON),� Alliant Techsystems (ATK),�Lockheed Martin (LMT),�Raytheon (RTN) and�Wesco Aircraft (WAIR) could beat.

  • [By Dan Caplinger]

    On Tuesday, Smith & Wesson Holding (NASDAQ: SWHC  ) will release its quarterly report, and shareholders have been pleased to see continued share-price gains from the gunmaker. Yet along with rival Sturm, Ruger (NYSE: RGR  ) , Smith & Wesson is in danger of seeing earnings top out, and many investors wonder whether the good times for the gun industry will last or whether the recent move from Alliant Techsystems (NYSE: ATK  ) to spin off its firearms and sporting segment marks a high-water mark for Smith & Wesson and other gun manufacturers.

Top Defense Companies To Watch For 2015: Exelis Inc (XLS)

Exelis Inc. (Exelis), incorporated on May 4, 2011, is engaged in Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) related products and systems and information and technical services, which the Company supplies to military, government and commercial customers in the United States and globally. The Company's customers include the United States Department of Defense (DoD), including the United States Army, Navy, Marines and Air Force, and its prime contractors, the United States Government intelligence agencies, National Aeronautics and Space Administration (NASA), Federal Aviation Administration (FAA), allied foreign governments and domestic and foreign commercial customers. As a prime contractor, subcontractor, or preferred supplier, the Company participates in many high priority defense and non-defense programs in the United States. In January 2013, it acquired C4i Pty. Ltd. In February 2014, Exelis, Inc purchased FareSight, ARC's Web-based tool for corporate air travel optimization.

The Company operates in two segments: C4ISR Electronics and Systems, and Information and Technical Services. The Company's C4ISR Electronics and Systems segment provides communications, electronic warfare, imaging and image-processing, radar and sonar systems, space systems, and aerostructures for government and commercial customers globally. The Company's Information and Technical Services segment provides a range of systems integration, network design and development, cyber, intelligence, operations, sustainment, advanced engineering, logistics, space launch and range-support solutions for a range of the United States military and government agency customers. The Company has successfully completed and integrated several acquisitions over the last five years, which has broadened its product and technology portfolio and expanded its customer base.

C4ISR Electronics and Systems

Integrated Electronic Warfare Systems (IEWS) is a Electro! nic Warfare Countermeasures (ECM) and engaged in space microelectronics, mine-defense solutions and antennas. IEWS develops, produces and sells electronic warfare solutions to DoD services, classified customers and to allied nations. IEWS is a key player on platforms, such as the strike fighter, the F-18, and Special Operations Forces (SOF) MH-60s and MH-47, and also holds electronic warfare positions on the B-1B, B-52, CV-22, C-130 and F-16 (International) platforms. The Company is a provider of mechanical and combined influences mine sweeping devices to the United States Navy. IEWS is engaged in Airborne Electronic Attack (AEA), fielding systems on the B-1, B-52, F-16, F-18, SOF C-130s and the EA-6B. Communication Systems and Force Protection Systems (CFPS) is a engaged in the design and manufacture of radio frequency (RF)-based systems. The business has fielded more than 25,000 CREW Vehicle Receiver/Jammer (CVRJ) systems, in use by the United States Army, Marine Corps, Navy and Air Force. The Company also specializes in tactical, satellite, wireless and special mission communications systems; information assurance and cryptographic systems; Global Positioning Systems (GPS); mobile ad hoc networking (MANET) solutions, and integrated C3 solutions for the United States and allied forces, as well as many government agencies. Products include SINCGARS, deployed military tactical radio program globally with more than 650,000 units in use in more than 35 countries. CFPS is also the developer of the Soldier Radio Waveform (SRW).

The Company's Night Vision and Imaging business is a engaged in image intensification, sensor fusion and digital night vision technology, integrated power and sensing devices, and decision support software and services solutions, which manage, exploit, analyze, visualize, interpret, and disseminate image related data. The Company is a developer, producer, and supplier of Generation 3 images intensification technology for the United States and allied military forces, as ! well as t! he federal homeland security market, and the Company is a producer of night vision products globally. The Company provides AN /PVS-14 and AN /PVS-7 ground night visions goggles and spare image intensifier tubes to the the United States military and allies, through foreign military sales, and the Company is a supplier to the United States military for the AN/AVS-6 and AN/AVS-9 aviation night visions goggle, which provides rotary- and fixed-wing pilots the ability to operate in extreme low-light situations. The Company is a supplier of the 2nd generation ENVG(O) system, the Spiral Enhanced Night Vision Goggle (SENVG), to the United States military. In addition the Company offers integrated software solutions, which scientists, defense and intelligence professionals, Geographic Information System users, researchers, and medical researches professionals use to turn complex data into useful information. The Company delivers streaming imagery and video data in an environment challenged by information overloads.

The Company's Intelligence, Surveillance and Reconnaissance (ISR) Systems business serves a range of government, civil and commercial customers with intelligence, surveillance and reconnaissance systems, provide actionable data, and protect property and human life. The Company's capabilities include remote sensing payloads for ground, air and space, offering active and motion imaging, which provide data processing, exploitation, and dissemination and system performance modeling and simulation. The Company also provides solutions, which map and monitors the earth for a range of commercial and governmental users. The Company's sensors provide the commercial resolution space-based imagery in the United States.

Radar, Reconnaissance and Acoustic Systems (R2A) provides radio frequency (RF) and acoustic surveillance sensors for both domestic and international defense customers, with a portfolio of related technology-based products in the commercial area. R2A's capabilities include d! efense su! rveillance radars, air traffic control radars, command and control, towed and hull mount sonars, tactical data links and airborne multifunction radars. The R2A business also provides electronic warfare and signal intelligence systems for reconnaissance and surveillance, with monitoring and signal processing systems and equipment for Electronic Intelligence (ELINT), Electronic Support Measures (ESM), Electronic Counter Measures (ECM) and Signals Intelligence (SIGINT) applications.

Integrated Structures (IS) is a designer and producer of aircraft-armament suspension and release equipment, weapons interface systems, and advanced composite structures and subsystems for military and commercial customers. IS is an advanced designers and manufacturers of lightweight advanced fiber-reinforced composite structures. The Company has supplied composites to aerospace prime contractors, including Boeing, Airbus, Lockheed Martin, Sikorsky and BAE Systems.

The Company's Positioning, Navigation and Timing (PNT) business is a total GPS navigation systems supplier providing GPS payload, receiver and control solutions. The next generation Global Positioning System Operational Control System (GPS OCX) provide command, control and mission support for current and future GPS satellites based on a modern, service-oriented architecture, which will integrate a government and industry open system standard. The Company is providing the key navigation processing elements and precision monitors station receivers during the current phase of the GPS OCX program, which includes advanced anti-jam capabilities, and system security, accuracy and reliability.

Information and Technical Services

The Company's Communication, Command and Control Systems (C3S) business provides systems engineering, lifecycle sustainment, logistic support, modernization, and operations and maintenance for the United States military launch, test and training ranges, NASA's Ground Communications Networks and ot! her the U! nited States Government assets globally. C3S supports complex mission requirements, which covers a spectrum of support, from facilities maintenance to reverse engineering of legacy systems. Key areas of support include system engineering, sustainment, logistics, depot maintenance, software engineering and configuration management for range instrumentation, such as tracking, telemetry, optical, weather, communications, and command & control networks and systems. The Company is a contractor on NASA's Space Communications Network Services (SCNS) contract for the Goddard Space Flight Center, which provides communications and tracking services for a range of Earth-orbiting spacecraft, such as the International Space Station. The Company operates, maintain, and sustain the communications networks and infrastructure, which supports deep space exploration missions, such as the Cassini mission to Saturn and the Mars Rovers. The Company is also the contractor for the Joint Spectrum Center's (JSC) Electromagnetic Spectrum Engineering Services contracts, where the Company provides engineering systems support, technical analysis, test support, and long-term strategic planning. C3S also provides payload processing and launch services for numerous government agencies. These systems and assets are critical to the launch range and space communications network infrastructures, including air, land and sea training range for the United States Navy, the United States Air Force space launch ranges on the United States East and West Coasts and NASA's space ground communications networks.

The Company's Advanced Information Systems business serves a range of federal customers in defense, intelligence and homeland security. The Company serves missions in military and national intelligence, deterrence and defenses against chemical, biological, radiological nuclear and explosive (CBRNE) threats, strategic programs and other core defense programs. The Company develops information-enabled solutions for the United States! Governme! nt customers.

Afghanistan Programs (AP) consists of two contracts with the United States Army Corps of Engineers to provide facilities operations, maintenance and training services for the Afghan National Security Forces (ANSF) and the Combined Security Transition Command in both Northern and Southern Afghanistan (ANSF Facilities Support programs). Under these two contracts, AP provides operations and maintenance support for more than 300 ANSF locations in Afghanistan, while simultaneously training Afghans to assume responsibility for the facilities at the completion of the contract. AP also supports the warfighter under the Logistics Civilian Augmentation Program (LOGCAP), which provides logistics and supply operations, airfield operations and transportation support to the United States warfighter and to the Afghanistan National Security Forces.

The Company provides the FAA with engineering expertise and full system solutions in the development and implementation of a modernized air traffics system. The Company's core program is the ADS-B system: the cornerstone program of the FAA's Next Generation Air Transportation System (NextGen) initiative to modernize from a ground-based system of air traffic control to a satellite-based system of air traffic management. As a contractor on ADS-B, the Company is designing, building and operating a nationwide system of radio communications, telecommunications networks, information technology and software to deliver accurate, networked, real-time surveillance data to the automated systems of the FAA. The Company is developing concepts under the Systems Engineering 2020 (SE2020) contract. The work spans all dimensions of a national effort to transform air traffic control, including ground systems, avionics, aircraft, air traffic control rules and procedures, human factors, safety and security, environmental processes and standards.

Middle East Programs (MEP) provides oversight and management for the Company's teams working in t! hat regio! n. The core capabilities of the MEP include logistics, vehicle maintenance and repair, facility and utilities maintenance and repair services, civil engineering, minor construction, transportation services, base operations, guard services, and emergency fire and life support services. MEP also maintains a range of equipment, from small arms to Patriot missiles, performing maintenance tasks both domestically and overseas. Logistics services also include transport of soldiers and equipment for combat operations. The Company's vehicle maintenance and repair contract is its Kuwait based Army Preposition Stock-5 (APS-5 Kuwait) contract.

The Communications and Information Systems (CYBER) business supports a range of the United States and Joint Forces military activities, as well as Federal civilian communications infrastructures globally, ranging from wideband satellite communications systems to network operations and management services. CYBER's capabilities include network management; mobile and fixed satellite communications operations and maintenance (SATCOM O&M); help desk support; switch, node and router support; database development; engineering; furnishing and installation of communications systems; information assurance of protected military networks, and field and depot level maintenance of communications equipment. As the prime contractor for the United States Army Network Command's Total Army Communications for Southwest Asia, central Asia and Africa program (TACSWACAA), CYBER maintains operational availability and information security for network resources in the battlefield network ever deployed. For the United States Southern Command, it operates and maintains tethered aerostats, which perform core drug interdiction and air sovereignty missions along the United States southern border. Communications support includes operations and maintenance for missions, such as the Defense Red Switch Network, which provides the President, Secretary of Defense, Joint Chiefs of Staff, combatant co! mmanders ! and various agencies with secure communications technology and systems.

The United States and Europe Programs is centered on logistics, base operations and infrastructure support to multiple military and governmental agencies in the United States and Europe. The business consists of supporting contracts with the United States Air Force and United States Army, including bases in the United States and Germany. The Company provides full spectrum base operating support, logistics, supply, maintenance and security to each of these installations. United States and Europe programs also focus on the nature of surface, rail and air transportation services, all life support services, as well as civil engineering and minor construction services.

The Company competes with Lockheed Martin Corporation, The Boeing Company, Raytheon Company, General Dynamics Corporation, L-3 Communications Corporation, SAIC Inc., Northrop Grumman Corporation, Harris Corporation, BAE Systems, Inc., Thales Group, EADS N.V., Finmeccanica S.p.A., DynCorp, KBR and Fluor.

Advisors' Opinion:
  • [By MONEYMORNING]

    Exelis Inc. (NYSE: XLS) is a leader in military technology covering everything from surveillance to communications to advanced materials.

    For instance, it has 40 years' experience building lightweight composite assemblies used in military airplanes and helicopters. Exelis also makes night vision goggles that provide voice and data communications in a secure format.

  • [By Michael Robinson]

    Exelis (XLS) is a leader in military technology, covering everything from surveillance to communications to advanced materials. The company became a stand-alone unit back in January 2011, when it was also spun-off from ITT Corp.

Dov Charney’s Out, American Apparel Rallies … and APP Stock’s Still a Bad Joke

Twitter Logo LinkedIn Logo Google Plus Logo RSS Logo Dan Burrows Popular Posts: Don't Tread on Me – 3 Great All-American Dividend Stocks to Buy3 Things That Could Get Amazon Stock Popping AgainThe Top 10 S&P 500 Dividend Stocks for June Recent Posts: Dov Charney’s Out, American Apparel Rallies … and APP Stock’s Still a Bad Joke Who Needs the World? FedEx Stock Looking Up on Its Own Adobe Stock Hits Record Territory, But New Money Should Stay Away View All Posts Dov Charney’s Out, American Apparel Rallies … and APP Stock’s Still a Bad Joke

American Apparel (APP) stock soared Thursday before settling down at mid-single-digit gains after the company’s board moved to fire founder Dov Charney as chairman and CEO — but that still doesn’t make shares in the racy retail chain and soft-core pornographer a buy.

AmericanApparel Dov Charney's Out, American Apparel Rallies ... and APP Stock's Still a Bad JokeTrue, APP stock jumped as much as 22% soon after the opening bell, but we’re talking about a penny stock here. Even after that eye-popping move, American Apparel stock topped out at only 78 cents a share.

And although American Apparel’s market cap might have ballooned on the news, it still stands at only about $120 million.

Face it: The only reason this microcap is on anyone’s radar is because of Dov Charney and his long history of bad behavior.

The amazing thing is that Dov Charney lasted this long. Quartz summed it up best with a list of the five things Dov Charney didn’t get fired for. It’s both hilarious and stunning:

“Hiring illegal immigrants to work in its US factory. Allegedly sexually harassing and assaulting numerous female employees, resulting in a slew of lawsuits. (Most of these were settled without costing the company any money. Trying to choke a male employee and throwing dirt at him. Running a company that hasn't made an annual profit since 2009. Running a company whose stock has rarely traded over $2 since April of 2013.”

It’s that last item on the list that makes APP stock a no-go area. Even after Thursday’s action, American Apparel stock is off 44% for the year-to-date, and there’s no standard time frame you can chart that makes it a winner. Here are some examples of the carnage in American Apparel stock:

Last 52 weeks: -66% Last three years: -20% Last five years: -79% Last 10 years: -91% American Apparel Stock: Why?

American Apparel stock is an ugly joke and has been one since, oh, the end of 2007. But — hey — that just accurately reflects American Apparel’s bottom-line performance.

APP hasn’t booked a full-year net profit since 2009. Even then it reported net income of just $1.1 million on $558.8 million in revenue, giving it a net profit margin of … 0.2%. Over the same span, revenue grew to $634 million — or a whopping 13% in four fiscal years.

It gets better: American Apparel warned that it will be in talks with its lenders for a waiver, since ousting the CEO/chairman could trigger a default under the terms of its credit agreements.

That’s never good news, especially for a company with a balance sheet as skanky as American Apparel’s. At the end of the March quarter, American Apparel had total assets of $332 million and total liabilities of $385 million, negative free cash flow, and negative book value.

If it weren’t for Dov Charney’s scandalous behavior and American Apparel’s soft-core image, no one would care about this stock.

And that creates a truly ironic situation: The end of Dov Charney’s embarrassing reign of error could actually be the move that buries American Apparel once and for all.

As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.