Are you planning to spend your tax refund on a car?
I'm not sure that's the best idea for many people, but eBay (NASDAQ: EBAY ) has discovered that quite a few folks are indeed planning to do just that.
The auction giant's eBay Motors division commissioned an online survey of 5,000 people to find out what they planned to do with their federal income tax refund this year. They found that more than one-third of drivers who responded plan to spend a portion of their refund -- in some cases a big portion -- on something related to vehicles.
That's a sizable amount of money. Is that likely to give a boost to new-car sales this year?
Quite a few new-car purchases coming
Here are some high points from eBay's findings:
That represents a fair number of people who will be wading into the new-vehicle (or at least new-to-them) market.
Hot Beverage Stocks To Invest In Right Now: Vanguard Consumer Staples Etf (VDC)
Vanguard Consumer Staples ETF (the Fund), formerly known as Vanguard Consumer Staples VIPERs, is an exchange-traded share class of Vanguard Consumer Staples Index Fund. The Fund employs a passive management or indexing investment approach designed to track the performance of the Morgan Stanley Capital International (MSCI) US Investable Market Consumer Staples Index (the Index). The Index is an index of stocks of large, medium and small United States companies in the consumer staples sector, as classified under the Global Industry Classification Standard (GICS). This GICS sector is made up of companies whose businesses are less sensitive to economic cycles. It includes manufacturers and distributors of food, beverages and tobacco, as well as producers of non-durable household goods and personal products. It also includes food and drug retailing companies, as well as hypermarkets and consumer supercenters.
The Fund attempts to replicate the Index by investing all, or substantially all, of its assets in the stocks that make up the Index, holding each stock in approximately the same proportion as its weighting in the Index. The Fund also may sample its target Index by holding stocks that, in the aggregate, are intended to approximate the Index in terms of key characteristics, such as price/earnings ratio, earnings growth and dividend yield.
Advisors' Opinion:- [By Chris Versace, Editor, PowerTrend Brief and PowerTrend Profits]
That, to me, says they're going to favor inelastic goods over elastic ones, so when you think of the things that we need each and every day, toilet paper, toothpaste, deodorant, shampoo, household cleansers, that sort of thing, that's what brings me into (XLP) and (VDC).
Top Income Companies To Own In Right Now: Sears Holdings Corporation(SHLD)
Sears Holdings Corporation operates as a specialty retailer in the United States and Canada. The company?s Kmart segment operates stores that sell merchandise under Jaclyn Smith and Joe Boxer labels; and Sears brand products, such as Kenmore, Craftsman, and DieHard. This segment?s stores provide consumer electronics, seasonal merchandise, outdoor living, toys, lawn and garden equipment, food and consumables, and apparel, as well as operate in-store pharmacies. Its Sears Domestic segment operates stores that sell merchandise under the Kenmore, Craftsman, DieHard, Lands? End, Covington, Apostrophe, and Canyon River Blues brand names. This segment?s stores provide appliances, consumer electronics, tools, sporting goods, outdoor living, lawn and garden equipment, home fashion products, automotive products, apparel, footwear, jewelry, accessories, health and beauty products, pantry goods, household products, and toys. The Sears Domestic segment also provides clothing, acces sories, footwear, and soft luggage; appliances and services to commercial customers in single-family residential construction/remodel, property management, multi-family new construction, and government/military sectors; premium appliance and plumbing fixtures to architects, designers, and new construction or remodeling customers; parts and repair services for appliances, lawn and garden equipment, consumer electronics, floor care products, and heating and cooling systems; and home improvement services. The company?s Sears Canada segment engages in the retail of apparel and other softlines. Sears Holdings Corporation operates approximately 2,172 full-line stores and 1,338 specialty retail stores in the United States; 500 full-line and specialty retail stores in Canada, as well as operates 17 floor covering stores, 1,734 catalog pick-up locations, and 108 travel offices; and kmart.com and sears.ca Websites. The company was founded in 1899 and is based in Hoffman Estates, Illi nois.
Advisors' Opinion:- [By Ben Levisohn]
On a relatively quiet day for retailer, shares of J.C. Penney have fallen 3.8% to $6.77, but are still above their recent lows. Kohl���(KSS), meanwhile, has edged up 0.1% to $54.93,�Macy���(M) has risen 0.4% to $44.72 and�Sears Holdings�(SHLD) has gained 0.6% to $55.97.
- [By Andr茅s Cardenal]
Sears Holdings' (NASDAQ: SHLD ) Sears stores have faced declining sales and falling profit margins in recent years, so the company麓s problems can't be entirely blamed on industry conditions. However, Sears reported dismal sales performance during the holiday quarter, with comparable-store sales declining by a worrisome 7.4% versus the prior year.
- [By Jake L'Ecuyer]
Sears Holdings (NASDAQ: SHLD) was also down, falling 6.71 percent to $55.57 after a report came out that management turnover at the company is increasing.�
- [By Matt Brownell]
Alamy For almost as long as Christmas has been a commercialized holiday, there have been complaints about "Christmas Creep" -- the tendency for retailers to launch holiday sales and advertising earlier and earlier every year. This year, it seems to be worse than ever. We're already seeing the first commercials for Christmas shopping, and major retailers like Kmart (SHLD), Toys R Us and Walmart (WMT) are eagerly telling us what toys they expect to be top sellers this season. And Christmas is still three months away. "It does feel like the holidays begin earlier every year," says Alison Kenney Paul, head of the retail practice at Deloitte. As it turns out, there are a few reasons why Christmas Creep has been taken to new heights this year. No Presidential Election. Last year, two men stood in the way of the inexorable spread of Christmas: Mitt Romney and Barack Obama. The presidential election served as a bulwark of sorts, holding the public's attention and making it more expensive for retailers to run television ads in October. This year, retailers have free rein to take over the airwaves in the fall, and you can expect them to take advantage. "Between paid political advertising and media attention, the election crowded out the ability for retailers to get their message out there earlier," says Paul. "We'll see more advertising and promotions earlier this year." A Late Black Friday. Every year, Thanksgiving falls on the fourth Thursday of November, with Black Friday coming the next day (well, in theory). But this year, the first of November falls on a Friday, which means that Thanksgiving (Nov 28) and Black Friday (Nov. 29) are as late as they can possibly be. "It is a shorter season than last year," says Paul. "You do have this phenomenon every few years where there's fewer days between Thanksgiving and Christmas." Think retailers are really going to wait around until Nov. 29 to roll out their big promotional efforts? Think again. While Black Friday wil
Top Income Companies To Own In Right Now: Community Trust Bancorp Inc.(CTBI)
Community Trust Bancorp, Inc. operates as the holding company for Community Trust Bank, Inc. that provides various banking products and services. It accepts various deposit product that include checking accounts, regular and term savings accounts and savings certificates, commercial demand deposit accounts, individual retirement accounts and Keogh plans, non interest bearing deposits, NOW accounts, money market deposits, savings accounts, and certificates of deposit and other time deposits. The company?s loan portfolio comprises residential and commercial real estate loans; commercial loans; commercial, construction, mortgage, and personal loans; and lease-financing, lines of credit, revolving lines of credit, term loans, and other specialized loans, including asset-based financing. It also provides full service securities brokerage services; annuity and life insurance products; trust services; debit cards; cash management services to corporate and individual customers; l etters of credit; safe deposit boxes; and funds transfer services. In addition, the company acts as a trustee of personal trusts, an executor of estates, trustee for employee benefit trusts, registrar, transfer agent, paying agent for bond and stock issues; and depositor for securities, as well as provides full service brokerage services. Community Trust operates 80 banking locations in eastern, northeastern, central, and south central Kentucky; southern West Virginia; and northeastern Tennessee, as well as 5 trust offices across Kentucky. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.
Advisors' Opinion:- [By Dividends4Life]
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number
GWW is trading at a premium to all four valuations above. The stock is trading at a 10.0% premium to its calculated fair value of $219.95. GWW did not earn any Stars in this section.
Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:
1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%
GWW earned three Stars in this section for 1.), 2.) and 3.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. GWW earned a Star for having an acceptable score in at least two of the four Key Metrics measured.
Rolling 4-yr Div. > 15% means that dividends grew on average in excess of 15% for each consecutive 4 year period over the last 10 years (2003-2006, 2004-2007, 2005-2008, etc.) I consider this a key metric since dividends will double every 5 years if they grow by 15%. The company has paid a cash dividend to shareholders every year since 1965 and has increased its dividend payments for 42 consecutive years.
Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked - [By Dividends4Life]
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number
HRL is trading at a premium to all four valuations above. The stock is trading at a 27.6% premium to its calculated fair value of $35.92. HRL did not earn any Stars in this section.
Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:
1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%
HRL earned one Star in this section for 2.) above. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. The company has paid a cash dividend to shareholders every year since 1928 and has increased its dividend payments for 48 consecutive years.
Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description:
1. NPV MMA Diff.
2. Years to > MMA
HRL earned a Star in this section for its NPV MMA Diff. of the $984. This amount is in excess of the $500 target I look for in a stock that has increased dividends as long as HRL has. If HRL grows its dividend at 13.2% per year, it will take 7 years to equal a MMA yielding an estimated 20-year average rate of 3.68%.
Memberships and Peers: HRL is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achiever
Top Income Companies To Own In Right Now: Exelixis Inc.(EXEL)
Exelixis, Inc., a biotechnology company, develops small molecule therapies for the treatment of cancer. It focuses on developing Cabozantinib, an inhibitor of tumor growth, metastasis, and angiogenesis that target MET, VEGFR2, and RET, which are key kinases involved in the development and progression of various cancers. The cabozantinib is in Phase III clinical trial for the treatment for medullary thyroid cancer. The company also engages in various clinical programs for cabozantinib focused on the treatment of metastatic castration-resistant prostate cancer, ovarian cancer, breast cancer, renal cell carcinoma, non-small cell lung cancer, hepatocellular cancer, and melanoma. In addition, Exelixis, Inc. involves in developing a portfolio of other novel compounds to address serious unmet medical needs through collaborations with various pharmaceutical and biotechnology companies, including Bristol-Myers Squibb Company, sanofi-aventis, Genentech, Inc., Boehringer Ingelheim Gm bH, and GlaxoSmithKline and Daiichi Sankyo Company Limited. Its products under development through collaborations include XL475, XL281, XL139, and XL413 inhibitors; ROR antagonists; therapies targeted against LXR, a nuclear hormone receptor implicated in various cardiovascular and metabolic disorders; XL147, XL765, and isoform-selective PI3K inhibitors; XL518, a small-molecule inhibitor of MEK; sphingosine-1-phosphate type 1 receptor; XL880 inhibitor; and therapies targeted against the mineralocorticoid receptor, a nuclear hormone receptor implicated in various cardiovascular and metabolic diseases. The company was formerly known as Exelixis Pharmaceuticals, Inc. and changed its name to Exelixis, Inc. in February 2000. Exelixis, Inc. was founded in 1994 and is headquartered in South San Francisco, California.
Advisors' Opinion:- [By Jake L'Ecuyer]
Equities Trading DOWN
Shares of Exelixis (NASDAQ: EXEL) were down 36.18 percent to $4.11 after the company issued an update on ongoing COMET-1 phase 3 pivotal trial in men with metastatic castration-resistant prostate cancer. Stifel Nicolaus lowered the price target on the stock from $11.00 to $9.00.
Top Income Companies To Own In Right Now: Medical Marijuana Inc (MJNA)
Medical Marijuana Inc. (MJNA), incorporated on May 23, 2005, is the publicly held company vested in the medical marijuana and industrial hemp markets. The Company is comprised of a diversified portfolio of products, services, technology and businesses solely focused on the cannabis and hemp industries. These products range from patented based cannabinoid products, to whole plant or isolated high value extracts specifically manufactured and formulated for the pharmaceutical, nutraceutical and cosmeceutical industries. In March 2013, it sold certain equipment and inventory, web domain names, phone numbers, and all existing and pending agreements with hemp production and processing facilities to CannaVEST Corp.
The Company�� services are varied, ranging from medical clinic management to the capitalization and development of existing industry business and product leaders. Services include development of cannabinoid based health and wellness products, and the development of medical grade compounds. MJNA provides over 50 and patented cannabinoid delivery methods that are more socially and medically acceptable than smoking.
Advisors' Opinion:- [By Bryan Murphy]
Though they've been lumped into the same category as Medical Marijuana Inc. (OTCMKTS:MJNA) and Tranzbyte Corp. (OTCMKTS:ERBB), names like Nuvilex Inc. (OTCMKTS:NVLX) and Growlife Inc. (OTCBB:PHOT) aren't actually marijuana stocks. Granted, PHOT and ERBB shareholders will benefit from the advent of legalized marijuana (and hemp) as much as shareholders of ERBB - a grower and dispenser - and MJNA shareholders will. But, in some way they're safer and more stable because they're not directly in the line of fire of potential regulation... or better-enforced regulation at the federal level. Indeed, there are several stocks that are circumventing the risk inherent with marijuana stocks, because they're not marijuana stocks at all. They are, in no particular order....
- [By Bryan Murphy]
Companies like Medical Marijuana Inc. (OTCMKTS:MJNA), Tranzbyte Corp. (OTCMKTS:ERBB), and Growlife Inc. (OTCBB:PHOT) were on the receiving end of another dose of good news on Thursday.... not that they necessarily needed it. That's when a study conducted by researchers at the University of Texas was published, illustrating how not only did the advent of medical marijuana not increase crime, but rather, coincided with a (relative) decline in crime.
Top Income Companies To Own In Right Now: United Stationers Inc.(USTR)
United Stationers Inc., through its subsidiary, United Stationers Supply Co., engages in the wholesale distribution of business products in North America. The company distributes technology products, which include computer supply and peripheral products, including imaging supplies, data storage, digital cameras, computer accessories, and computer hardware items. It also offers traditional office products consisting of brand-name and private label office supply products, such as filing and record storage products, business machines, presentation products, writing instruments, paper products, shipping and mailing supplies, calendars, and general office accessories; and office furniture products comprising desks, filing and storage solutions, and seating and systems furniture. In addition, the company distributes janitorial and breakroom supply items, including cleaners and cleaning accessories; foodservice consumables, such as disposable cups, plates, and utensils; safety an d security items; and paper and packaging supplies. Further, it provides industrial supply items, such as hand and power tools; safety and security supplies; janitorial equipment and supplies; industrial maintenance, repair, and operations (MRO) items; and oil field and welding supplies. Additionally, the company offers freight, advertising, and software services, as well as sells software products. It serves independent office products dealers; contract stationers; office products superstores; computer products resellers; office furniture dealers; mass merchandisers; mail order companies; sanitary supply, paper, and foodservice distributors; drug and grocery store chains; healthcare distributors; e-commerce merchants; oil field, welding supply, and industrial/MRO distributors; and other independent distributors through its network of 65 distribution centers and 37 re-distribution points. United Stationers Inc. was founded in 1922 and is headquartered in Deerfield, Illinois.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on United Stationers (Nasdaq: USTR ) , whose recent revenue and earnings are plotted below. - [By Holly LaFon]
The company�� primarily competitors are Office Depot (ODP), United Stationers (USTR) and Office Max (OMX). Staples has the best gross margins of its competitors, at greater than 26%, and the only one to increase its book value per share since 2001.
- [By Rich Duprey]
Business supplies distributor�United Stationers (NASDAQ: USTR ) announced on Friday its third-quarter dividend of $0.14 per share, the same rate it's paid for the past three quarters after raising the payout 8% from $0.13 per share.
- [By Monica Gerson]
United Stationers (NASDAQ: USTR) is projected to post its Q3 earnings at $0.99 per share on revenue of $1.33 billion.
Wynn Resorts (NASDAQ: WYNN) is estimated to post its Q3 earnings at $1.65 per share on revenue of $1.36 billion.
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