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Featured Advisors
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Tuesday May 29, 2012
by John Buckingham, editor The Prudent SpeculatorBrocade Communications ( BRCD) watched its shares tumble after reporting fiscal second quarter results that beat analyst expectations.
Despite delivering solid results, investors seemed more concerned about next quarter’s guidance and decided to stay focused on near-term concerns, versus the long-term potential of the company. During the fiscal second quarter, the networking equipment concern generated revenue of $543.4 million, resulting in diluted earnings per share of $0.15 on a non-GAAP basis, up some 24% year-over-year, and outpacing consensus analyst expectations of $0.12. For the fiscal third quarter, management projects that BRCD will deliver EPS of $0.11 to $0.13 (with consensus estimates at $0.12 for the quarter) on expected revenue of $525 million to $545 million. We continue to like BRCD and we were pleased to see management strengthen the company’s financial position (reducing debt by $182.3 million over the past 12 months) and cut operating expenses, all while returning value to shareholders via an active share repurchase program (with 4.4 million shares bought back during fiscal Q2). It is worth noting that the board of directors voted to increase the share buyback program by $500 million, which brings the outstanding balance to $624 million. Because the company continues to generate solid free cash flow, and is currently trading at attractive valuations, which include a forward P/E of less than 8 and a price to book value ratio of 1, we hope management takes advantage of the low price to buy back a lot more shares. Learn more about this financial newsletter at John Buckingham's The Prudent Speculator.Related articles:
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News Flash
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Friday May 17, 2013
United Natural: A play on Whole Foods |
by Mark Skousen, editor Hedge Fund Trader Alert
We’ve recommended Whole Foods Market (WFM) from time to time, and the stock has moved up sharply in the past three years, but I’d like to suggest an alternative -- one of Whole Foods’ primary suppliers, United Natural Foods (UNFI).
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Thursday May 16, 2013
Timing expert eyes India |
by Sy Harding, editor Street Smart Report
The money flow and momentum reversals in India's Bombay Index have now been enough to trigger buy signals on intermediate-term indicators. With this new buy signal, we have added a position in the iShares India 50 ETF (INDY) to our portfolio.
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Wednesday May 15, 2013
Value investor goes with Guess |
by Charles Mizrahi, editor Hidden Values Alert
Guess?, Inc. (GES) is a holding in our special situation portfolio; its strong product quality has created brand name recognition and a loyal consumer following.
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Wednesday May 15, 2013
MGAM: Bingo, lotteries, casinos |
by Jim Oberweis, Jr., editor The Oberweis Report
Multimedia Games Holding Company (MGAM) makes innovative gaming systems for Native American and commercial casino operators in North America, lottery operators, and charity and commercial bingo operators.
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Tuesday May 14, 2013
Fidelity expert: Bowers' bond bets |
by Jack Bowers, editor Fidelity Monitor & Insight
If you’ve been worried that the bond market might take a big hit, you can relax. Indeed, while bond funds may lag stock funds over the next 5-10 years, they still have a decent shot at keeping up with inflation, and they remain an excellent way to cut risk in a blended portfolio.
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Tuesday May 14, 2013
Tesla: 'Out of the ball park' |
by Timothy Lutts. editor Cabot Stock of the Month
Tesla (TSLA), our previously featured Stock of the Month and our top stock pick for 2013, knocked the ball out of the park in its latest quarter. The company exceeded analysts' expectations on all counts: cars sold, revenues, earnings, gross margins and more.
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Monday May 13, 2013
5 ways to speculate on Cuba |
by Jim Powell, editor Global Changes & Opportunities Report
With the death of Hugo Chavez in March, and Venezuela’s economic decline, the heavily subsidized oil lifeline is likely to be cut or sharply reduced. I think the resulting energy squeeze will force Cuba to allow greater foreign trade and investment.
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Monday May 13, 2013
Big gains in nanotechnology? |
by Doug Fabian, editor Making Money Alert
The nanotechnology niche focuses on very small, even microscopic, technology. Nanotech has produced technological developments in medicine (lasers), electronics (ink jet systems) and biomaterials (chemical and bio-detectors).
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Friday May 10, 2013
Gold: Reasons for continued caution |
by Jim Stack, editor Investech Market Analyst
In October 2011, we questioned the run-up in gold prices to $1,895 an ounce and called prices “bubblish”. We were criticized for not understanding the new paradigm. Nonetheless, the price of gold has fallen significantly, and I feel more comfortable sharing my personal perspective of what lies ahead.
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Thursday May 09, 2013
Buffett's Berkshire is still a buy |
by Geoffrey Seiler, editor BullMarket.com
Recommended List selection Berkshire Hathaway (BRK.B) reported a 51% increase in net income for the first quarter, powered by profits from its extensive insurance businesses and strong results from the railroad unit.
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