"Uncertainty about the legal disputes has weighed on Qualcomm (NASDAQ: QCOM)," says Richard Moroney, who rates the stock a long-term buy. The editor of Dow Theory Forecasts explains, "Though the court case may distract investors, Qualcomm's long-term fundamentals appear solid." Here's his bullish outlook.
"The company is embroiled in disputes over royalty fees paid for use of its patents, particularly by one of its largest customers, Nokia. In March, the combatants agreed to consolidate a host of lawsuits into one case to be heard later this year and likely to be decided by year's end.
"Barring a disastrous court loss, which seems unlikely, Qualcomm shares should benefit. Any resolution will reduce uncertainty. By the end of this year, Qualcomm should be able to jettison some of the baggage holding back its stock.
"While the U.S. economic slowdown has sparked fears of a decline in demand for microchips, Qualcomm should benefit as cell-phone users worldwide transition to third-generation technology, which allows for faster downloading of video, music and other data.
In Next Inning newsletter, technology stock guru Paul McWilliams sees weakness in Hewlett Packard (NYSE: HPQ) as an opportunity to buy "one of the best-managed large cap tech companies in the world."
"Following Mark Hurd's appointment as CEO back in 2005, we turned cautiously bullish on the shares. It didn't take long to realize that he was not only making the right decisions, but also executing them swiftly and effectively.
"Hurd hit the ground running, trimming fat and restructuring both internal and sales channel operations. The net results were rapidly growing sales, improved profitability and a much higher stock price.
"Now, in line with our earnings preview, Hewlett Packard announced results that were better than the consensus expectation of the covering analysts; HPQ also raised its full year guidance.
"However, the real news is the company's intention to purchase EDS for $13.9 billion. The news of the acquisition has knocked the stock down to a level that represents a clear value opportunity.
"In my view, this is a brilliant move by HPQ and that the negotiated price represents a solid value for HPQ. I believe this represents an opportunity for investors to buy one of the best-managed large cap tech companies in the world at a clear value price."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
"The market is pricing publicly-traded partnerships as if they're headed for bankruptcy," says Neil George who sees high yield and value in select issues. Here's two ideas from The Partnership Letter -- a global infrastructure play and a real estate investment trust.
"There are some darn good partnerships out there that are indeed worth the near-term risk, even amid the probability of lower stock prices.
"Partnerships are characterized by high cash generation and the maximization of depreciation and other tax deductions. They then pay out as much cash as possible to unitholders. And with prices so low, we get to buy into assets that in many cases are worth a lot more in terms of liquidation value.
"Atwood Oceanics Inc. (NYSE: ATW) is our bet on the exploding demand for offshore oil drilling rigs," says international investment expert Nick Vardy.
The editor of Global Bull Market Alert explains, "Although it's had a big run recently, the stock is as technically oversold as it was when global markets bottomed in mid-March." Here, he outlines why he believe the stock will perform strongly in the coming months.
"Atwood Oceanics Inc. engages in the offshore drilling of oil and gas wells worldwide. It operates eight offshore mobile drilling units located in six regions of the world, including offshore Southeast Asia, Africa, India, Australia, the Black Sea, and the Gulf of Mexico.
"Atwood is a leveraged play on the price of oil. Oil prices have now blown past the original estimates of major investment banks. Commodities guru Jim Rogers recently predicted that oil will soon hit $200.
"Amid record high oil prices and dwindling supplies on land, the Shells, Exxons and BPs of the world are having to venture into ever harsher and more remote environments offshore to replenish their oil reserves. That puts offshore oil drillers like Atwood Oceanics in the catbird seat.
"For those who want to 'go green' there are new opportunities to tap the environmental trend by adding cutting edge, alternative energy ETFs to your portfolio," says Doug Fabian, editor of Successful Investing.
"ETF providers are starting to latch onto the green theme. Two fund families, PowerShares and Market Vectors, have created their own classes of clean energy ETFs. A pair of ETFs has been launched in the narrow but potentially profitable niche of solar energy.
"The Claymore/MAC Global Solar Energy Index ETF (NYSE: TAN) is designed to track 25 companies in the solar power industry. Sectors included in the ETF are equipment producers, companies that concentrate on selling electricity, and suppliers of materials or services, installation, integration or finance. TAN currently invests in companies such as MEMC Electronic Materials, Suntech Power Holdings, and LDK Solar Co. Ltd.
"Van Eck Global launched the Solar Energy ETF (ASE: KWT). That solar energy ETF seeks to replicate the price and yield performance of the Ardour Solar Energy Index, which includes companies that generate at least 66% of their revenues from solar energy. The four top holdings are First Solar, Germany's Q-Cells and Solarworld AG, and Norway's Renewable Energy.
While many know that Bill Gates and Warren Buffet are the two wealthiest, Tony Sagami notes that few know the third: Sheldon Adelson. In his Asia Stock Alert, he explains, "Adelson is the founder and CEO of Las Vegas Sands (NYSE: LVS), our latest featured stock." Here, he looks at the gaming company and its bright prospects in Macau.
"Due to its strategic location in the South China Sea, Macau has a rich history as an Asian trading hub. To this day, it looks more European than Asian. And its popularity with tourists is absolutely exploding - an estimated 27 million visited Macau last year.
"The majority (55%) came from mainland China, but many more visited from Hong Kong (30%) and Taiwan (9%). These tourists are flocking to Macau not because of its history or picturesque seaside location. They're coming to gamble.
"And boy, did they gamble! On my last visit to Macau, I saw table after table filled with boisterous high rollers routinely making $100,000 bets. These 'whales' account for about 80% of Macau's gambling revenues.
"Today, Macau has become the Las Vegas of China. It is the only city in the region with fully legalized gambling. And gambling is deeply engrained in the Asian culture. Plus, Macau is within a five-hour flight of three billion people - nearly half the world's population.
"Many of the industries that we think of as 'mature' in the U.S. are still in their infancy in Russia," notes global expert John Christy.
In his Forbes International Investment Report, he notes, "Advertising is a perfect example. Overall, the Russian ad market is growing at a 25%-30% clip." Here, he looks at CTC Media (NASDAQ: CTCM), one of the leading TV broadcasters in Russia.
"In 2007, total advertising spending in Russia was approximately $9 billion versus just $1.1 billion back in 2000. To put things in perspective, consider that in the U.K., Europe's largest ad market, spending is roughly $22 billion.
"With more than twice the population of the U.K., Russia's advertising market is less than half its size. Of course, it will take a very long time for Russia's economy to become as developed as Britain's but there is clearly a lot of room for growth.
"Television companies will be a prime beneficiary of this trend. TV accounts for about half of all advertising spending in Russia, or about $4.4 billion. And television advertising has been growing at 40% annually, an even faster pace than that of ad spending overall.
"One of the easiest ways for investors to tap into this growth is through CTC Media. The Moscow-based company is Russia's fourth-biggest broadcaster, with an 11.3% audience share.
"A new era could be dawning in Taiwan," says Asia region expert Keith Fitz-Gerald. Here, the editor of The New China Trader looks at an ETF and a mutual fund favorite to benefit from this forecast.
"While there were many reasons we recommended investing in Taiwan, perhaps the single most important was the potential for Taiwan to assume its role as 'China's real beneficiary.'
"We have been reasoning that President-elect Ma Ying-jeou would be far more interested in working with China than antagonizing it, as his predecessor did. We have also suggested that he would 'get on it' sooner rather than later by making relations with China a top priority.
"Indeed, Vice President-elect, Vincent Siew has already 'unofficially' met with Chinese President Hu Jintao on the sidelines at the Boao Forum for Asia. While it's too early to pass judgment, it could set the stage for a new era based on the friendly nature of the meeting according to observers.
"It could also set the stage for a longer-term pan-Asian economic boom. That would be great for the region but especially China and Taiwan, which have had bone-chillingly cold relations for years.
"For China, a fresh start is important because it would allow Beijing to demonstrate peaceful intentions at a time when Tibet and the Summer Olympics have become a lightning rod for all things Chinese.
"For Taiwan, a thawing would lead to new economic development and, we think, previously unheard of levels of business interaction. It would also potentially carry huge trade volumes and stability into the surrounding countries.
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
"Oil prices have made the headlines recently," says Martin Hutchinson in The Money Map Reporter. "But the miracle fuel of the 19th Century is coal, the forgotten fossil fuel."
"Coal is located primarily in politically stable, friendly countries - most notably the U.S. market itself. Coal prices have zoomed northward during the past year. The current spot price is around $135 per metric ton, more than double the level of a year ago. Meanwhile, coal production is running way ahead of forecasts.
"In 2005, the World Coal Institute reported production of 4,970 million metric tons, up 78% over 25 years. The main reason for coal's growth is that 80% of China's power needs and 65% of India's come from coal-fired stations.
"Since both India and China are expected to quadruple their power consumption by 2030, most of that increase must come from coal-fired stations. What are the best buys in the sector?
David Fried is a leading authority on corporate buybacks, focused exclusively on companies that are involved in repurchasing their own shares.
One of the latest 'buys' in his aptly-named The Buyback Letter, is consulting and outsourcing firm Accenture (NYSE: ACN). Here's the advisor's review.
"Accenture is a global management consulting, technology services and outsourcing company, collaborating with clients to help them become high-performance businesses and governments.
"They use industry knowledge, expertise and technological capabilities to help worldwide clients enter new markets, increase revenues in existing markets, improve operational performance and deliver their products and services more effectively and efficiently.
"Although Pfizer (NYSE: PFE) recently posted an 18% drop in its first-quarter earnings, I remain a long-term bull on the shares," notes Nilus Mattive in the income and growth oriented Dividend Superstars.
"Results were hurt by tougher generic competition for the company's blood-pressure drug Norvasc and allergy treatment Zyrtec. Pfizer pulled in $0.41 a share in the quarter, but would have earned $0.61 excluding costs associated with two acquisitions.
"A lot of investors are treating the poor earnings as a death knell for the company, especially since Lipitor - PFE's biggest product - will also lose patent protection in 2010. However, I've watched countless drug stocks go through these cycles before, and I continue to believe it's smarter to buy when things look the worst.
"This is still the world's largest drug company ... it still delivers big, fat dividend checks ... and it is making strong moves to reorganize its operations and focus on new drug development. For all those reasons, I remain positive on the shares."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
"Shares of Walgreen (NYSE: WAG) have come under pressure in recent months, reflecting a slowdown in sales because of a weakening economy and intensifying competition," notes Richard Moroney.
The editor of Dow Theory Forecasts adds, "However, Walgreen's long-term prospects remain appealing, and the stock is attractively valued. Walgreen is a Long-Term Buy." Here is his review.
"Big, strong, and healthy, Walgreen is the largest U.S. drugstore chain as measured by revenue and the second-largest based on store count.
"The company operates more than 6,200 stores in 48 states and Puerto Rico and plans to boost the count to 7,000 by fiscal 2010 ending August. Walgreen sees long-term potential for about 13,000 U.S. stores. Prescriptions generate about 65% of total sales, with the rest coming from general merchandise.
"In fiscal 2007, both pharmacy and general merchandise sales growth outpaced the industry average, and Walgreen increased market share in nearly all of its core categories.
"The acquisitons helped boost the number of wireless products handled in 2007 by 55% to 83 million. The company is also the leading provider of customized logistics services to the wireless industry.
"CELL purchases cell phones, batteries, chargers, and memory cards, and then sells them to a global network of 25,000 customers.
"The objective is to acquire distribution rights to products offering the greatest potential for growth. It sells brands made by LG Electronics, Nokia, Kyocera, Motorola, Samsung, Sony, Siemens, and Ericsson. This category produced 92% of total 2007 revenues, but it had a gross profit margin of just 4.24%.
"Socially Responsible Investing (SRI) is no longer relegated to a tiny corner of the investment landscape; indeed, according to the Social Investment Forum, SRI now accounts for $2.7 trillion, up more than 18% since 2005," says Chuck Carlson.
Here, the editor of The DRIP Investor offers five stock that both rank high for their social responsibility and also stand out based on more traditional earnings and valuation analysis.
"The Social Investment Forum estimates that more than one in every 10 dollars under professional management in the U.S. is involved in SRI investing. What is driving the growth in SRI?
"One factor is the increasing numbers of women and younger investors among the investor populace have fueled demand for SRI investments.
"In addition, we see an increased focus on environment, social, and corporate governance issues. Further, widely publicized stories concerning global warming as well as various corporate governance issues, have caused many investors to reconsider how they deploy their investment capital.
Two leading advisors with noted expertise in the biotech sector have both been long-term fans of Celgene (NASDAQ: CELG), both holding the stock in their respective model portfolios.
Nate Pile explains, "Now that the Pharmion merger is behind us, it appears that investors are once again recognizing Celgene for what it is – namely, one of the premier stories in the biopharmaceutical space.
"As I have said a number of times before, if I could only own one biotech stock for the next ten years, Celgene would be it... and I encourage you to make it a 'first choice' for your portfolio as well!
"The stock is likely to exhibit its usual volatility around the company's upcoming earnings report, but I encourage you to take advantage of any sell-off that may occur to aggressively add to your position in this market leader. CELG is now considered a strong buy under $60 and a buy under $68."
John McCamant states, "Celgene had some good news of late on the thalidomide front. The company has received approval of the application to expand the drug's label to treat newly diagnosed multiple myeloma (MM) patients in Australia.
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