I have been an investor in the oil and gas industry for a few years now. Within the space, I have recently added three companies to my watch list. This group of three is composed of large-capitalization companies that are going through a restructuring process of the most diverse nature. In addition, they are owned by great investors such as Seth Klarman or George Soros.
On Track to Recovery
I believe in the upside potential of British Petroleum (BP), which is one of the big positions owned by Seth Klarman, the legendary value investor who founded Baupost and author of the value investing bible, "Margin of Safety."
The upside at British Petroleum is materially greater than any further downside risk from the 2010 oil spill that has put the company into disruption over the last few years. The sell-off that followed the platform explosion in the Gulf of Mexico has erased more than $50 billion of the company's market capitalization, creating a historical investment opportunity. The shares currently discount the worst-case scenario as British Petroleum trades at a 13% discount to its European peers.
Best New Companies To Invest In Right Now: RELM Wireless Corp (RWC)
RELM Wireless Corporation (RELM) provides two-way radio communications equipment. RELM designs, manufactures and markets wireless communications products consisting of two-way land mobile radios, repeaters, base stations, and related components and subsystems. Two-way land mobile radios can be units that are hand-held (portable) or installed in vehicles (mobile). The Company's P-25 digital products and the Company's analog products function in the VHF (136 megahertz - 174 megahertz), UHF (380 megahertz - 470 megahertz, 450 megahertz - 520 megahertz) and 700-800 megahertz bands. The Company offers products under two brand names: BK Radio and RELM. BK Radio-branded products serve the government and public safety market and RELM-branded products serve the business and industrial market.
BK Radio-branded products consist of land-mobile radio equipment for professional radio users primarily in government and public safety applications. RELM's P-25 digital products are marketed under the BK Radio brand. RELM-branded products provide two-way communications for commercial and industrial concerns, such as hotels, construction firms, schools, and transportation services. The Company provides products to a range of customers, including emergency, public safety, homeland security and military customers of federal and state government agencies, as well as various commercial enterprises. The Company's two-way radio products are used in harsh and hazardous conditions.
The Company competes with Motorola Solutions, Inc.
Advisors' Opinion:- [By Roberto Pedone]
Relm Wireless (RWC) is engaged in the designing, manufacturing and marketing wireless communications products consisting of two-way land mobile radios, repeaters, base stations and related components and subsystems. This stock closed up 2.8% to $3.58 in Tuesday's trading session.
Tuesday's Range: $3.40-$3.58
52-Week Range: $1.42-$3.74
Tuesday's Volume: 106,000
Three-Month Average Volume: 74,659From a technical perspective, RWC trended higher here right above some near-term support levels at $3.20 to $3.10 with above-average volume. This stock has been uptrending for the last two months, with shares moving higher from its low of $2.62 to its intraday high of $3.58. During that move, shares of RWC have been making mostly higher lows and higher highs, which is bullish technical price action. That move is quickly pushing shares of RWC within range of triggering a major breakout trade. That trade will hit if RWC manages to take out its 52-week high at $3.74 with high volume.
Traders should now look for long-biased trades in RWC as long as it's trending above some near-term support levels at $3.20 or its 50-day at $3.10 and then once it sustains a move or close above $3.74 with volume that hits near or above 74,659 shares. If that breakout hits soon, then RWC will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $4.50 to $5.
Top 5 US Stocks To Watch For 2014: Texas Instruments Incorporated(TXN)
Texas Instruments Incorporated engages in the design and sale of semiconductors to electronics designers and manufacturers worldwide. The company?s Analog segment offers high-performance analog products comprising standard analog semiconductors, such as amplifiers, data converters, and interface semiconductors; high-volume analog and logic products; and power management semiconductors and line-powered systems. Its Embedded Processing segment includes DSPs that perform mathematical computations to process and enhance digital data; and microcontrollers, which are designed to control a set of specific tasks for electronic equipment. The company?s Wireless segment designs, manufactures, and sells application processors and connectivity products. Its Other segment offers smaller semiconductor products, which include DLP products that are primarily used in projectors to create high-definition images; and application-specific integrated circuits. This segment also provides handhe ld graphing and scientific calculators, as well as licenses technologies to other electronic companies. The company serves the communications, computing, industrial, consumer electronics, automotive, and education sectors. Texas Instruments Incorporated sells its products through a direct sales force, distributors, and third-party sales representatives. It has collaboration agreements with PLX Technology Inc.; Neonode, Inc.; and Ubiquisys Ltd. The company was founded in 1938 and is headquartered in Dallas, Texas.
Advisors' Opinion:- [By Paul Ausick]
We have tracked the key short interest changes as of September 30 in the following semiconductor leaders: Intel Corp. (NASDAQ: INTC), Advanced Micro Devices Inc. (NYSE: AMD), Micron Technology Inc. (NASDAQ: MU), SanDisk Corp. (NASDAQ: SNDK), Qualcomm Inc. (NASDAQ: QCOM), ARM Holdings PLC (NASDAQ: ARMH), Broadcom Corp. (NASDAQ: BRCM), Marvell Technology Group Ltd. (NASDAQ: MRVL), Nvidia Corp. (NASDAQ: NVDA), Texas Instruments Inc. (NASDAQ: TXN) and Applied Materials Inc. (NASDAQ: AMAT). We also chose to look at how the Market Vectors Semiconductor ETF (NYSEMKT: SMH) has held up.
- [By Lee Jackson]
Texas Instruments Inc. (NASDAQ: TXN) also supplies VOIP chips to Cisco, but their sales to the company amount to a very small percentage which is not expected to hurt overall performance. The consensus price target for the venerable tech company is $38. Shareholders are paid a 2.9% dividend.
- [By Victor Selva]
Several tech vendors like Intel (INTC), IBM (IBM), Texas Instruments (TXN) and Hewlett-Packard (HPQ) have announced job cuts for 2014. These reductions will take effect in the near future while management will continue to explore additional opportunities to improve profitability.�
- [By Chuck Saletta]
Speaking of results ...
United Technologies (NYSE: UTX ) reported decent numbers, with net earnings ahead of expectations but growth driven more by acquisitions than by organic improvements in its existing businesses. Given the company's conglomerate setup, growth by bolt-on acquisitions isn't surprising, but over the long haul, it'd be better to see its businesses growing internally as well as through acquisitions. The news at Mine Safety Appliances (NYSE: MSA ) wasn't quite as good, with both revenues and net earnings falling from year ago levels on a tough environment for the mining businesses it supports. That's a risk well known to the company and its shareholders, though, and while the weaker results did knock the company's stock down, the business has ridden through tough cycles before. It looks capable of riding through this one, too. Hasbro (NASDAQ: HAS ) , on the other hand, reported earnings that beat expectations on an operating basis, before restructuring charges knocked it down to a net loss. Given that the company is in the very seasonal toy business, that loss in an off-peak quarter is much less of a concern than it would have been in the make-or-break holiday quarter. UPS (NYSE: UPS ) kept on trucking, with a better-than-expected January and strength from eCommerce helping the company turn in an 8% growth in net reported earnings per share. Overall, UPS is operating efficiently, though its future success is tied to its ability to continue delivering more packages. As long as its e-commerce business continues to grow, though, UPS is wel
Right now, quarterly earnings season is well under way, which provides a perfect opportunity for one of those "check in from time to time" moments. While the iPIG portfolio did nothing last week, several of its picks did report, and those quarterly confessionals can help determine whether the companies are still worth owning. To summarize key results:
Top 5 US Stocks To Watch For 2014: American Heritage International Inc (AHII)
American Heritage International Inc., formerly Cumberland Hills Ltd., incorporated on January 19, 2010, intends to focus on electronic cigarette. The Company�� product includes American Heritage, American One, American Freedom, American Nights, American Standard and Smoking Alternative Gums and Mints.
The Company�� initial and primary line will be the American Heritage line. American One is a disposable Electronic Cigarette, good for over 500 draws, about the equivalent of over two packs of traditional cigarettes. American Freedom will be the brand name for its Nicotine-Free line of Electronic Cigarettes. American Nights will be a product line targeted to the young adult market of social smokers. Smoking Alternative products will include gums, and mints.
Advisors' Opinion:- [By James E. Brumley]
The winds of change are blowing in the cigarette arena, and though in a superficial sense it looks like the usual big tobacco names such as Reynolds American, Inc. (NYSE:RAI) or Lorillard Inc. (NYSE:LO) are positioning to retain their dominance in the new era of cigarette smoking, in reality, it's a little name like American Heritage International Inc. (OTCBB:AHII) that could end up beating the big guys at their own game.
- [By John Udovich]
Small cap electronic cigarette stocks Vapor Corp (OTCMKTS: VPCO), Smokefree Innotec�(OTCMKTS: SFIO), Hop-On Inc (OTCMKTS: HPNN) and American Heritage International Inc (OTCBB: AHII) are what�� left of the e-Cig market not controlled by ��ig Tobacco��and at least one of these stocks is positioning itself or its technology to exploit opportunities in marijuana or cannabis. Last year, industry experts were saying that�US retail sales of e-cigarettes could reach $1 billion for the year or�1% of the country's cigarette market but twice that of 2012�as sales go off the Internet and into more mainstream retailers. Moreover, they are being positioned as a ��ealthier��alternative to smoking (albeit some places have already extended their smoking bans to cover the devices). It should be stated that electronic cigarettes look just like traditional cigarettes and are usually comprised of three functional components:
- [By John Udovich]
Last week, I talked about small cap electronic cigarette stocks Vapor Corp (OTCMKTS: VPCO) and Hop-On Inc (OTCMKTS: HPNN) as being among the last of the e-Cig�stocks not controlled by ��ig Tobacco,��but Victory Electronic Cigarettes Corp (OTCMKTS: ECIG), mCig Inc (OTCBB: MCIG) and American Heritage International (OTCBB: AHII)�are also�positioning themselves or their technology to exploit opportunities in the e-Cig market or even in�marijuana or cannabis. Last year, industry experts were already saying that�US retail sales of e-cigarettes could reach $1 billion for the year�for roughly�1% of the country's cigarette market. That number might appear small, but its more than double 2012 sales�as sales increasingly�move off the Internet and into more mainstream retailers thanks to their positioning as a���ealthier��alternative to smoking.
- [By Bryan Murphy]
Enter American Heritage International Inc. (OTCBB:AHII). No, it's not marijuana play. It's also not a maker of marijuana vending machines. It's an electronic cigarette maker still in its initial expansion phase, and seeing the potential of vending machines (but without the risk and potential legal hurdles of marijuana vending machines), the company announced this morning it has inked a deal with a major operator of vending machines to sell its e-cigs.
Top 5 US Stocks To Watch For 2014: EveryWare Global Inc (EVRY)
EveryWare Global, Inc., formerly ROI Acquisition Corp., incorporated on September 19, 2011, is the designer and seller of tabletop and food preparation products for the consumer and foodservice markets. The Company�� global platform allows the Company to market and distribute internationally its total portfolio of products, including flatware, dinnerware, crystal stemware, glassware, serveware, cutlery, buffetware, candle glass, floral glass, spirit bottles, kitchen tools and gadgets and kitchen accessories. On June 18, 2013, the Company acquired the George Wilkinson and Samuel Groves business units of Metalrax Housewares, a maker and provider of metal bakeware, cooking utensils and catering supplies.
The Company also licenses the trademarks and distributes the Stolzle, Schonwald, Strata and BuffetEuro branded products in its Consumer, Foodservice and International segments. The Company operates in the United States, Canada, Mexico, Latin America, Europe and Asia.
Advisors' Opinion:- [By John Udovich]
On Wednesday, small cap kitchen stock Everyware Global Inc (NASDAQ: EVRY) surged 52.94% after announcing an amendment to extend its forbearance agreement with lenders until July 15 that could give the company�time to find a long-term financing solution���meanings its worth taking as closer look at the stock along with potential peers Libbey Inc (NYSEMKT: LBY) and Lifetime Brands Inc (NASDAQ: LCUT).
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