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WASHINGTON (TheStreet) -- The U.S. Transportation Department has rejected Norwegian Air International's request for an exemption that would permit it to serve the U.S. while its request for a permit to operate as an Ireland-carrier is reviewed. The rejection, which has no immediate impact because Norwegian can continue to serveathe U.S. under its current framework, was sought by a variety of airline labor unions as well as by American Delta aand United . Norwegian's application for a permit is still pending and the carrier continues to fly to the U.S. Read More:a5 Most Beloved U.S. Airlines of All Time Read More:a5 Worst U.S. Airlines of All Time "The U.S. Department of Transportation took an important stand for fair competition today by denying Norwegian Air International's request for temporary authorization to fly to and from the United States," Lee Moak, president of the Air Line Pilots Association, said Tuesday in a prepared statement. "While today's decision is extremely significant, the DOT's work is not yet complete in making certain that NAI is not permitted to exploit international aviation policy and law to gain an unfair economic advantage over U.S. airlines," Moak continued. "The DOT must take the next step and deny NAI's application for a foreign air carrier permit to serve U.S. markets." Sara Nelson, president of the Association of Flight Attendants, said in a prepared statement: "The DOT's decision upholds decades of work by AFA and our colleagues across the globe to create opportunities for aviation workers while expanding business." Also, 38 senators have signed a letter to the DOT opposing a permit for Norwegian. The opponents object to NAI's strategy to establish an Irish airline and to hire pilots in Singapore, and to pay them less than pilots who fly for NAI's parent company. American, Delta and United argued, in their December letter to the DOT, that "Article 17 of the US-EU agreement recognizes the importance of 'high labor standards' and 'prohibits the establishment of flags of convenience to evade labor protections and thereby derive a competitive advantage in the marketplace.'" In a statement late Tuesday, Norwegian said the DOT "announced today that it will require additional time to reach a decision on Norwegian Air International's application for a foreign carrier permit to serve the U.S. from Europe. Until then, Norwegian Air Shuttle will continue to operate flights to the U.S. under its existing authority from DOT. "Today's announcement to dismiss the exemption application 'on procedural grounds,' simply gives DOT additional time to consider NAI's permit application," Norwegian said.a"It is not a denial." "While we think it is unfortunate that DOT feels the need to further delay issuance of our permit, which has been pending now for over six months, Norwegian Air International stands behind its business," said Asgeir Nyseth, CEO of NAI.a In a March interview with TheStreet, Norwegian Air Shuttle CEO Bjorn Kjos said that all the forces arrayed against him -- including the 38asenators, the pilots union, the flight attendants union and the big three airlines -- have it wrong. Norwegian is not anti-union and does not pay employees too little and is also among Boeing's best customers, the European launch customer for the 737 MAX, Kjos maintained. "Nobody would work for Norwegian if we paid them peanuts," Kjos said in an interview. "We have to compete for (employees.)" In fact, he said, about two-thirds of Norwegian Air Shuttle employees are unionized. The carrier currently operates flights to the U.S. under Norwegian registration, but has relocated its long-haul company's registration to Ireland, which is part of the European Union, while Norway is not. Kjos said the U.S. carriers "hate competition and have incredibly high fares (while) Norwegian offers low-cost flying on the 787." Norwegian pays its captains about $170,000 annually and pays first officers about half that, Kjos said. It pays flight attendants $35,000 to $40,000 annually. Oslo-based Norwegian Air Shuttle began flying the Boeing 787 in August on European routes as well as Oslo and Stockholm to Bangkok and New York. It plans to operate a fleet of 14 Dreamliners, with three in service and four to be delivered by summer. Written by Ted Reed in Charlotte, N.C. To contact this writer, click here. Follow @tedreednc a

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a NEW YORK (The Deal) -- Norwegian Cruise Line Holdings , the Miami-based cruise ship operator, is buying Prestige Cruises International in a $3.025 billion deal, pairing together two recreation companies that share a common private equity backer — Apollo Global Management LLC. The deal is a mix of cash and stock, but no breakdown of how much of each was provided. Officials from Norwegian, Prestige and Apollo didn't return calls. Norwegian investors cheered the deal, which was announced jointly by the two companies Tuesday, bidding its shares up 11%, to end the day at $37, up over 4% for the year to date. Apollo has a minority stake in Norwegian and a majority stake in Prestige. Fort Worth PE firm TPG Capital LP, which invested alongside Apollo, also maintains a minority stake in Norwegian. Genting Hong Kong Ltd. is also an investor in Norwegian. In 2013, the companies posted nearly $3.8 billion in combined revenue -- with more than $2.5 billion coming from Norwegian. Norwegian's market cap following the deal's announcement is $6.75 billion. So, at $3.025 billion, Norwegian is paying roughly 2.3 times Prestige's 2013 revenue. Read More: 10 Stocks George Soros Is Buying According to the deal announcement, Norwegian's fleet will swell to more than 20 ships with the Prestige acquisition. Through Prestige's fleet, Norwegian will also be able to access the luxury cruise market. Further, with the company's top competitors -- Carnival Corp. and Royal Caribbean Cruises -- bigger than Norwegian in terms of both market capitalization, as well as fleet size, the company is building scale against the largest players in its industry. Carnival's market cap is $29 billion and operates a number of global cruise brands. Royal Caribbean operates more than 40 ocean liners. Norwegian said it also expects to achieve synergies immediately, since Prestige, too, is based in Miami. The Norwegian-Prestige acquisition marks a culmination of sorts for a pair of Apollo investments. In April 2007, Apollo bought a 60% stake in Oceania Cruises in a $325 million deal. Oceania eventually wound up under the umbrella of Prestige, after the sponsor did a separate deal in December 2007, worth about $1 billion, to buy that asset from Minneapolis-based Carlson Cos., a hospitality company. Also in 2007, Apollo acquired a 50% stake in NCL Corp. for $1 billion; that company would go on to debut on the Nasdaq in early 2013 as Norwegian Cruise Line Holdings, and shares have appreciated about 50% on public markets. Read More: 5 U.S. Cities Where Uber Is Unwelcome but Wants Your Taxi Business In the wake of Norwegian's success on public markets, Apollo decided in early 2014 it would attempt yet another cruise float, and Prestige filed for a $250 million initial public offering that ultimately wound up being half of a dual-track process.

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NEW YORK (TheStreet) -- With the arrival of the month of September and the end of summer vacations, some things never seem to change in the stock market. The DJIA was down 30.89 points on Tuesday to close at 17067.56 and the S&P 500 lost 1.09 to close at 2002.28. The Nasdaq was higher by 17.92 at 4598.19 and the Russell 2000 finished up 5.12 to close at 1179.47. For those of you who were expecting to see volume pick up with the return of the big New York traders, you were sadly mistaken. Read More: 10 Stocks Carl Icahn Loves in 2014 The S&P 500 Trust Series ETF volume came in at just over 71 million shares traded on Tuesday. This should finally put an end to the discussion that once summer is over volume will once again return to normal. I have been saying all year that the hedge funds are in complete control of this market and volume. If you do not believe that fact now, you have no understanding of how this stock market truly works today. In addition, in the most recent five-day period ending Aug. 20, equity fund flow trends rebounded marginally with domestic stock funds breaking a 16-week running outflow. However, the intermediate term trends are still intact with fixed income netting $4.9 billion in net new flow in the most recent five-day period, almost a 2-1 ratio versus the $2.6 billion allocated to equities. Bottom line, domestic stock funds saw an outflow in 16 of 17 weeks, according to the Investment Company Institute. The question now becomes when will the hedge funds decide to start selling? That is the $60 million question. The Nasdaq, S&P 500 and Russell 2000 are still in overbought territory. The DJIA is the only index that is not overbought. As a matter of fact, the PowerShares QQQTrust is in extreme overbought territory. There is nothing to buy on my oversold scan of both small-cap and large-cap stocks. There is a massive amount of overbought stocks on the scan for short consideration, according to my algorithm process. I will continue to add to my inverse ProShares UltraPro Short QQQ position. I added a new short position on Tuesday. TeleNav has an extraordinarily overbought signal of a 99.99. Read More: Sunesis Takes a Run Through the Feuerstein-Ratain Rule My process dictates that I buy stock with an extreme oversold signal and short with an extreme overbought signal. That is what we have currently. At the time of publication, the author was long SQQQ and short TNAV, although positions may change at any time. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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NEW YORK (TheStreet) - If you haven't tried Uber yet, it's clear that the mobile app ride-sharing service is looking to come to a city near you, if it hasn't already - and in the process making traditional taxi service irrelevant. Instead of hailing a cab, registered users simply use Uber's mobile app - via their Apple iPhones, Android devices or Windows phones - to request a pickup location. Since registered users already have their credit card information saved in Uber's app, there's no need for cash and receipts are emailed. Uber has several ride-sharing options: a low-cost option, uberX, luxury sedans and seating for groups under UberBLACK and UberSUV as well as uberTAXI, which connects users to a taxi at metered rates. Uber drivers retain 80% of the fare earned, with the company taking the other 20%. Founded just five years ago, the San Francisco-based company is already in 205 cities in 45 countries, with the company expanding into 24 markets just last week. The company says it has millions of users, but would not provide an exact number to TheStreet. However, Uber is up against strong resistance from taxi drivers in various cities across the world who have been in an uproar at the disruptive company, mainly for not being beholden to stringent regulations that other taxi drivers are required to follow. A number of cities, from Seattle to London have held protests against the company. Read More: eBay Is Smartly Treating StubHub Like Uber On Tuesday, following a lawsuit that was filed by Taxi Deutschland, a German court in Frankfurt temporarily banned two of Uber's three services in the country -- Uber and UberPOP, its ridesharing option in Europe. Unlike UberBlack, the first two services do not require the use of registered drivers, according to Fortune. "Uber will carefully review the content of the preliminary decision of the Frankfurt Regional Court, and will appeal this decision and vigorously defend the claim that has been filed by Taxi Deutschland," Uber responded in a blog post on Tuesday. In the meantime, "Uber will continue its operations - and will continue to offer its services via its app - throughout Germany." Last week Illinois Governor Pat Quinn vetoed legislation, House Bill 4075, dubbed the "Uber bill" and a related measure under House Bill 5331 that would have imposed statewide regulations on commercial ridesharing and preventing local governments from adopting rules to fit their communities. "I am vetoing this legislation because it would have mandated a one-size-fits-all approach to a service that is best regulated at the local level," Gov. Quinn said in an Aug. 25 statement. Uber, which raised $1.2 billion in June at aapre-money valuation of $17 billion, is also experimenting with other delivery services like messenger services through UberRUSH in New York City, a ridesharing option, UberPool, that's in beta testing in San Francisco; the Uber Corner Store launched in Washington D.C. last month, and, from Aug. 26 through Sept. 5, it is experimenting with UberFresh delivery service in Santa Monica, Calif. Investors in Uber include Goldman Sachs and Google , through Google Ventures. The company sees itself as a technology company not a transportation company. "We assess a number of factors before entering a market, including existing regulations and user demand. If the laws haven't conceived of Uber's model, we'll reach out to policymakers about the significant demand in their city and educate them on this new paradigm," Uber spokeswoman Natalia Montalvo wrote in an email to TheStreet on Tuesday. Here's five U.S. cities making it harder for Uber to do business. Read More: Why Uber Users with American Express Cards Will Be Getting Rides Little Rock, Ark. Uber is trying to get off the ground in Little Rock, but it is currently prohibited there. The city is gearing up for a debate on the ride-sharing service, with varying positions by Little Rock's board of directors on whether to allow the service in the city, according to the Arkansas Times. Uber has apparently "suggested revisions" to the city's code to allow it to operate, the Aug. 20 article said. A follow up article by the Arkansas Times sheds light on a fact sheet that Uber submitted to the city in hopes of persuading Little Rock. "We're in the really early stages of the process with them," said Luis Gonzalez, communications and market manager for the City of Little Rock, who confirmed to TheStreet that currently the service is not allowed there. Uber representatives are tentatively scheduled to meet with Little Rock's board of directors this month to take a closer look at the city's transportation ordinance to see what, if any, revisions would be needed to accommodate Uber. "That's going to be the first step," Gonzalez noted. Read More: Uber Zooms Through Legislative Road Block Las Vegas The glittering city of Las Vegas is still without an Uber outlet, while other smaller cities Uber away. According to Uber's Twitter feed, @Uber_Vegas, the state's outdated regulations are the cause of the absence. @shanereiser, wish we could bring safe stylish rides to LV but state won't allow. Hope lawmakers give voters what they want #VegasNeedsUber — Uber Vegas (@Uber_Vegas) March 17, 2014 Nevada's taxi and limousine regulations are among the strictest in the nation, according to the Las Vegas Sun. Portland, Ore. Uber has also set its sights on Portland, Ore., but so far, the city's makes it illegal for Uber to operate there. Portland has started to look at ways to modernize its tax regulations for the sharing economy, according to a July 30 article from The Oregonian. Portland Bureau of Transportation, which took over responsibility for rideshare regulations on July 1, does not currently have a timeframe for the amended regulations. Richmond, Va. Following a June cease-and-desist order by the state of Virginia to Uber and its competitor Lyft, last month Uber and the Commonwealth state cleared up its differences so that the company could have temporary authority to operate in the state. Uber announced on its blog on August 6 that it was uberX would be available in Richmond, Va. Two more cities in Virginia - Charlottesville and Blacksburg - were added as part of last week's Uber launch in an additional 24 markets. Cambridge, Mass. While Uber isn't currently prohibited in Cambridge, the city is trying to figure out how to regulate it. Cambridge's board of License Commissioners held a public hearing on June 17 to discuss draft regulations for smartphone technology, which mainly includes concerns about public safety - driver background checks, regular vehicle inspections and adequate insurance. The city stated in a press release that while it "has no intention of stifling innovation or removing transportation options," it does "have an obligation to ensure that transportation industries falling under their regulatory authority provide safe and accountable service to the public." Final rules have not been completed yet. "We're still kind of looking at our next steps," Andrea Jackson, chairwoman of the Cambridge License Commission, told TheStreet on Tuesday, who added that there should be an update in the next month or two. --Written by Laurie Kulikowski in New York. Follow @LKulikowski // 0;if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); // ]]>

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NEW YORK (TheStreet) -- Select Income REIT shares dropped -5.4% to $26.37 on Tuesday after the real estate investment trust announced that it was spendinga$2.7 billion in cash and stock options to buy REIT Cole Corporate Income Trust. The deal expands the company's presence to 35 states from 21 states, while adding 64 office and industrial properties to the company's portfolio. The deal in total is worth $3 billion and is expected to close in the first quarter of the next fiscal year. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates SELECT INCOME REIT as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate SELECT INCOME REIT (SIR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and feeble growth in the company's earnings per share." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 23.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The gross profit margin for SELECT INCOME REIT is rather high; currently it is at 65.32%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 53.30% significantly outperformed against the industry average. Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock. SELECT INCOME REIT' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Stable earnings per share over the past year indicate the company has managed its earnings and share float. We anticipate this stability to falter in the coming year and, in turn, the company to deliver lower earnings per share than prior full year. During the past fiscal year, SELECT INCOME REIT increased its bottom line by earning $2.11 versus $2.10 in the prior year. For the next year, the market is expecting a contraction of 3.3% in earnings ($2.04 versus $2.11). The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, SELECT INCOME REIT's return on equity is below that of both the industry average and the S&P 500. You can view the full analysis from the report here: SIR Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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Update (5 p.m.): Updated with Stanton Ross comments and regulatory filing information. NEW YORK (TheStreet) --aShares ofaDigital AllyaDGLY hit a 52-week high of $32.49 on Tuesday after the company said inquiries for its wearable cameras have increased five-foldasince the shooting in Ferguson, MO. Late last week, Digital Ally CEO Stanton Ross told USA Todayalast Thursdayathat the company hadaincreased its full-year revenue guidance to $22.5 million, which equates to a 26.4% increase from $17.8 million in 2013. The company reaffirmed this forecast in an 8K regulatory filing on Friday but cautioned "there can be no assurance that the company will achieve the results forecast because, among other factors, they are based largely on its expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond its control. The company also said on Thursday that it had received its first camera order since the fatal shooting of an unarmed black teenager in Ferguson. The Michigan police department placed the order. Must Read:aMuted Pockets of Momentum STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. The stock soared 51.02% to $28.18 at 11:30 a.m. More than 10.5 million shares had changed hands, compared to the average volume ofa1,997,550. DGLY data by YCharts EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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NEW YORK (TheStreet) -- Shares ofaMelco Crown Entertainmenta fell 1.87% to $26.81 in after-hours trading on Tuesday after Macau gaming revenue fell in August, the third straight month of decline. Macau gaming revenue droppeda6.1% year-over-year as China cracks down on corruption and declining Chinese housing prices reduced demand from rich VIP customers, according to Reuters. Gambling revenue from Macau's 35 casinos fellalast month to 28.9 billion patacas, or $3.6 billion, compared to 30.7 billion patacas in the same period one year earlier. Analysts expected a 2% to 6% decline. Must Read:a3 Stocks Pulling the Services Sector Downward STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. The stock hit a 52-week low of $26.28 on Tuesday. It closed down 3.67% to $27.32. More than 9.8 million shares had changed hands, compared to the average volume ofa3,853,860. Separately, TheStreet Ratings team rates MELCO CROWN ENTMT LTD as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate MELCO CROWN ENTMT LTD (MPEL) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: The debt-to-equity ratio is somewhat low, currently at 0.68, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, MPEL has a quick ratio of 2.42, which demonstrates the ability of the company to cover short-term liquidity needs. Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market on the basis of return on equity, MELCO CROWN ENTMT LTD has underperformed in comparison with the industry average, but has exceeded that of the S&P 500. Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year. MELCO CROWN ENTMT LTD's earnings per share declined by 21.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MELCO CROWN ENTMT LTD increased its bottom line by earning $1.15 versus $0.76 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $1.15). MPEL, with its decline in revenue, slightly underperformed the industry average of 5.5%. Since the same quarter one year prior, revenues slightly dropped by 7.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share. You can view the full analysis from the report here: MPEL Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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NEW YORK (TheStreet) --aFlextronics was gaining 3.6% to $11.50 after-hours Tuesday after receiving approval to buy back up to 20% of its shares. Flextronics also announced that its board of directors authorized management to buy up to $500 million worth of the company's stock. The company purchased about $1.7 billion worth of shares, or 247 million shares, over the past four years. The timing and number of shares repurchased will depend on price, market conditions, and any applicable legal requirements, the company said. No timetable was given for the new buybacks, and the company can choose to suspend or end the program at any time. Must Read:a50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates FLEXTRONICS INTERNATIONAL as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate FLEXTRONICS INTERNATIONAL (FLEX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 14.7%. Growth in the company's revenue appears to have helped boost the earnings per share. Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year. FLEXTRONICS INTERNATIONAL reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, FLEXTRONICS INTERNATIONAL increased its bottom line by earning $0.58 versus $0.45 in the prior year. This year, the market expects an improvement in earnings ($1.00 versus $0.58). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 193.4% when compared to the same quarter one year prior, rising from $59.26 million to $173.89 million. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, FLEXTRONICS INTERNATIONAL's return on equity exceeds that of both the industry average and the S&P 500. You can view the full analysis from the report here: FLEX Ratings Report EXCLUSIVE OFFER:aSee inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners.aClick here to see the holdings for FREE.

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NEW YORK (TheStreet) -- Darden Restaurants shares closed trading up 0.9% to $47.75 on Tuesday after the company announced that it was nominating eight new directors to its board in what is seen as an appeasement of its largest shareholderaStarboard Value LP. The company nominated nine incumbent board members to the 12 seat board earlier this year, leaving three seats open for Starboard Value choices. "Starboard is seeking effective control of the company, representation which is disproportionate to Starboard's approximate 8.8 (percent) stake in Darden," said Darden non-executive chairman Charles Ledsinger, "This slate avoids many of the risks and destabilization that would result from full board turnover and giving control to a single shareholder's nominees." Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Pressure from Starboard Value and other investing groups led to the company announcing that longtime CEO Clarence Otis would be stepping down in July. TheStreet Ratings team rates DARDEN RESTAURANTS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: "We rate DARDEN RESTAURANTS INC (DRI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: DRI's revenue growth has slightly outpaced the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 3.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The gross profit margin for DARDEN RESTAURANTS INC is rather low; currently it is at 20.24%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 5.24% trails that of the industry average. Net operating cash flow has significantly decreased to $103.40 million or 60.16% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. You can view the full analysis from the report here: DRI Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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NEW YORK (TheStreet) --aDelta Air Lines gained 3.4% to close at $40.93 Tuesday due to falling oil prices. WTI for October fell 2.8% to $93.24 a barrel Tuesday. Price fell -2.3% last month, and are down -3.6% from the beginning of the year. Brent Crude, the global benchmark fell -2.2% to $100.58 a barrel, according to Barron's. The lower oil prices helped push up stocks of Delta and other airlines. American Airlines and United Continental also benefitted from the drop in crude oil prices. Shares of American Airlines gained 4.2% to close at $40.50, while shares of United gained 5% to close at $49.99 on Tuesday. Must Read:a50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates DELTA AIR LINES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate DELTA AIR LINES INC (DAL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: Compared to other companies in the Airlines industry and the overall market, DELTA AIR LINES INC's return on equity significantly exceeds that of both the industry average and the S&P 500. Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 108.52% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DAL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. The revenue growth significantly trails the industry average of 48.4%. Since the same quarter one year prior, revenues slightly increased by 9.4%. Growth in the company's revenue appears to have helped boost the earnings per share. The debt-to-equity ratio is somewhat low, currently at 0.85, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.41 is very weak and demonstrates a lack of ability to pay short-term obligations. You can view the full analysis from the report here: DAL Ratings Report EXCLUSIVE OFFER:aSee inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners.aClick here to see the holdings for FREE.

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NEW YORK (TheStreet) --aConcur Technologiesa surged 14.41% to $115.50 in after-hours trading Tuesday afteraBloomberg reported the company isaexploring a sale. The company, which makes software that assists companies with travel expense management, has reached out to someacompanies, including SAP SE , to test the waters on a possible sale,aBloombergareports. Concur is working with an investment bank and also reached out toaOracle , though the company decided not to pursue an acquisition. Concur has a market value of more than $5.7 billion. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. The stock closed up 0.57% to $100.95 on Tuesday. Concur hit an intraday high of $101.38 and low of $99.84. Separately, TheStreet Ratings team rates CONCUR TECHNOLOGIES INC as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: "We rate CONCUR TECHNOLOGIES INC (CNQR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 28.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. CNQR's debt-to-equity ratio of 0.86 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that CNQR's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.83 is high and demonstrates strong liquidity. The gross profit margin for CONCUR TECHNOLOGIES INC is currently very high, coming in at 72.08%. Regardless of CNQR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CNQR's net profit margin of -0.01% significantly underperformed when compared to the industry average. Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Software industry and the overall market, CONCUR TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500. Net operating cash flow has declined marginally to $25.47 million or 9.07% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. You can view the full analysis from the report here: CNQR Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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"Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell. If you want to have a better performance than the crowd, you must do things differently from the crowd." -- Sir John Templeton NEW YORK (TheStreet) -- Today was another slow day for markets, as traders trickle back after a long weekend. September isn't usually the best month of the year, but neither is August -- and August was fantastic. Leading stocks remain strong and are building nice continuation patterns, like bull flags, or are continuing to move higher. We are still seeing relatively low volume in markets, but the leading stocks are seeing good volume at key points. There are a lot of people complaining about the low volume -- and that is only because they are missing out on this rally. Read More: Goldman Sachs' 50 Stocks That Matter Most to Hedge Funds Not everything is perfect every time. Being able to ride a trend, even while not perfect, is what makes money. Stops are to keep from being hurt. But I'll try a breakout or chart pattern any day of the week even while not all the factors are there to indicate an ideal trade. Being wrong is part of trading. But you can't win without taking a chance, and sometimes you can't have everything just perfect. You can't always have your cake and eat it too, although it sure is nice when it happens. Gold and silver remain very weak, as I've said was the most likely scenario for some time now.a They still have more downside ahead. Read More: 5 Ways to Hike Your IRA Contributions The S&P 500 SPDR ETF is still building a very nice bull flag and can pop at any time now. $201 is a buy point. But I am more focused on individual stocks, since they are showing me better action and moving much quicker. At the time of publication, the author held no positions in any of the stocks mentioned. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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NEW YORK (TheStreet) -- Guidewire Software shares are up 6.6% to $49.20 in after-hours trading on Tuesday after announcing fourth quarter revenue of $118.2 million, ahead of analysts expectations of $112.9 million. The insurance industry software provider reported quarterly earnings of 37 cents per diluted share, 10 cents better than it reported a year ago and 9 cents better than analysts were expecting for the quarter. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates GUIDEWIRE SOFTWARE INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: "We rate GUIDEWIRE SOFTWARE INC (GWRE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing." Highlights from the analysis by TheStreet Ratings Team goes as follows: You can view the full analysis from the report here: GWRE Ratings Report GWRE data by YCharts EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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NEW YORK (TheStreet) -- Shares of PetroChina Co. closed up 1.81% to $144.37 today after it was earlier reported that China'sabiggest energy companies stand to benefit from Russian President Putin'saoffer to sell a stake in the country's second-biggest oil project to "Chinese friends," Bloomberg reported. "It's a huge opportunity for Chinese oil companiesasuch as Sinopec and PetroChina to get into upstream in Russia," said Simon Powell, head of oil and gas research as CLSA Ltd. in Hong Kong, referring to exploration and production, according to Bloomberg. "PetroChina and Sinopec have a lot of free cash and it's just across the border." Russia is turning to China to spur its economy as relations sour with the U.S. and Europe over the Ukraine crisis, Bloomberg noted. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates PETROCHINA CO LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate PETROCHINA CO LTD (PTR) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 9.2%. Growth in the company's revenue appears to have helped boost the earnings per share. Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 31.87% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PTR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. PETROCHINA CO LTD has improved earnings per share by 11.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PETROCHINA CO LTD increased its bottom line by earning $11.70 versus $10.11 in the prior year. This year, the market expects an improvement in earnings ($11.77 versus $11.70). Net operating cash flow has increased to $18,209.64 million or 31.22% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.36%. You can view the full analysis from the report here: PTR Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE

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NEW YORK (TheStreet) -- TheStreet'saJim Crameratalks about the breakout news ofaRegenerona and its partneraSanofia , who teamed up to createaa cholesterol drug called alirocumab that would be used with the statin class of cholesterol drugs to decrease the hard-to-reduce cholesterol levels.a Cramer says this is great news for the approximately 12 million people who are allergic to the statin class. He thinks this is a multi-billion dollar drug foraRegeneron and the company is finally breaking out. Cramer thinks this makes all sorts of sense because the drug cuts heart rate failure risk and stroke risk. Cramer thinks Renegeron is a better way to play this news thanaSanofi. Must Read:aCramer: What's Working, What's Not STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. REGN data by YCharts EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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NEW YORK (TheStreet) -- After fluctuating between gains and losses for much of the day, U.S. stock indices endedaTuesday mixed. Watch the video below to see how U.S. markets ended the trading day Tuesday: WATCH: More market update videos on TheStreet TV With September historically being the "worst" month of the year for stock market performance and a number of big economic headlines expected in the back half of the week, investors returned from the U.S.aLabor Day weekend largely indecisive about their positioning, despite a trio of good U.S. economic reports. The ISM manufacturing index hit a stronger-than-anticipated 59 in August, while construction spending rebounded by a more-than-forecast 1.8% in July. The Markit PMI manufacturing index, at 57.9 in August, increased to its highest level since April 2010. Investors were not impressed. The Dow Jones Industrial Average afell 0.18% to 17,067.56 and the S&P 500 was down 0.05% to 2,002.28. The Nasdaq was up 0.39% to 4,598.19. Breadth was mildly negative. Twenty one of the 30 Dow components ticked lower, most noticeably Home Depot , which fell 2.02% to $91.15 on news that the home improvement company may have suffered a customer credit and debit data breach. About 1.1 issuesadeclinedafor everyaadvancer. Sector performance was mixed, with energy being the worst performer, thanks to a decline in oil majors and services companies such as Chevron , Exxon and Schlumberger .aThe consumer discretionary sector was one of the better performers of the day after Dollar General raised its offer for Family Dollar to $80 a share, or $9.1 billion, from $78.50 a share. Dollar General rose 0.58% to $64.36 on the report. Family Dollar was up 0.49% to $80.22. Home Depot offset some of these gains. Read More: Apple's Next iPhone: What We Think We Know Apple provided a boost to the broad market. The stock rose 0.78% to $103.30, adding to gains ahead of its Sept. 9 press event where it's widely expected toaunveil the next iPhone, which may be called the iPhone 6 or the iPhone Air. "Investors are going to have to figure out how they feel about better economic data in the context of less Fed accommodation. Assuming forecasts hold, this is going to be the struggle as the year progresses," said Dan Greenhaus, chief strategist at BTIG. The Federal Reserve is expected to keep a close eye on Friday's August nonfarm payrolls report. The central bank's labor market conditions index that was referenced by Fed Chair Janet Yellen in her Jackson Hole, Wyo., speech sources much of its data points from these numbers. In the eurozone, the attention was being squarely focused on Thursday's meeting of the European Central Bank and hopes of moves toward a policy of quantitative easing. U.S. equities closed slightly higher on Friday, capping four straight weekly gains and booking their best August since 2000, despite geopolitical concerns weighing on the markets. The close also marked the biggest monthly gain since February. The S&P 500 struck a new closing high on Friday. While September is often viewed with a degree of skittishness by investors -- it is the only month with negative average returns dating back to 1980 -- the S&P has actually been up in eight of the last 10 Septembers and 63% of Septembers since 1995. Average returns have been skewed by outliers, making the month's positive median gain more relevant focus on, said Greenhaus. United States Oil Fund was down 2.74% to $34.78 while the SPDR Gold Trust was off 1.78% to $121.65. Read More: Stock Market Today: S&P Books Best August Since 2000 Despite Geopolitical Threats --By Andrea Tse in New York Follow @AndreaTTse

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NEW YORK (TheStreet) -- 1-800-Flowers.Com shares were up 16.1% to $5.98 on Tuesday after announcing that it is purchasing Harry & David Holdings for $142.5 million in cash. The deal includes Harry & Davids 47 retail stores and Oregon headquarters. Theafood shipping company'sawill become a wholly owned subsidiary of 1-800-Flowers.Com with the company's management team remaining in place according to a joint statement released by the companies today. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Shares continue to climb in after-hour trading today, up 0.16% to $5.99. TheStreet Ratings team rates 1-800-FLOWERS.COM as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate 1-800-FLOWERS.COM (FLWS) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: Net operating cash flow has slightly increased to $5.74 million or 2.60% when compared to the same quarter last year. In addition, 1-800-FLOWERS.COM has also modestly surpassed the industry average cash flow growth rate of 0.30%. FLWS's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.25 is very weak and demonstrates a lack of ability to pay short-term obligations. 40.95% is the gross profit margin for 1-800-FLOWERS.COM which we consider to be strong. Regardless of FLWS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -0.79% trails the industry average. 1-800-FLOWERS.COM has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, 1-800-FLOWERS.COM increased its bottom line by earning $0.23 versus $0.19 in the prior year. This year, the market expects earnings to be in line with last year ($0.23 versus $0.23). You can view the full analysis from the report here: FLWS Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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Update (4:05 p.m.): Updated with Tuesday closing price information. NEW YORK (TheStreet) --aShares ofaRadioShacka plunged 21.88% to $1.25 at the close ofatrading Tuesday on high volume, to lose some of the gains the stock made last week. RadioShack shares more than doubled last week and trading volume soared amid news thataStandard General LPacouldarescue the struggling electronics retailer with a financing deal to help it fight off bankruptcy. More than 24.7 million shares changed hands, compared to the average volume ofa4,638,800. The stock opened at $1.60 and peaked at $1.69 shortly after the market opened before it turned sharply downward. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Separately, TheStreet Ratings team rates RADIOSHACK CORP as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation: "We rate RADIOSHACK CORP (RSH) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Specialty Retail industry. The net income has significantly decreased by 127.0% when compared to the same quarter one year ago, falling from -$43.30 million to -$98.30 million. The debt-to-equity ratio is very high at 8.46 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, RSH has a quick ratio of 0.51, this demonstrates the lack of ability of the company to cover short-term liquidity needs. Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, RADIOSHACK CORP's return on equity significantly trails that of both the industry average and the S&P 500. Net operating cash flow has significantly decreased to -$37.80 million or 323.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 57.06%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 177.14% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now. You can view the full analysis from the report here: RSH Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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NEW YORK (TheStreet) -- Shares of Under Armour Inc. are surging this afternoon, up 4.08% to $71.15 on heavy trading volume, after theaathletic apparel company that got its start catering to football players, hired supermodel Gisele Bundchenato promote its products as ti looks to appeal more to women, according to Bloomberg. Bundchen was signed to a multiyear deal as the latest addition to its list of female endorsers, the company said. Under Armour, founded by Chief Executive Officer Kevin Plank to sell clothes that go under football jerseys, has expanded into shoes, yoga wear and bags,aBloombergasaid. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates UNDER ARMOUR INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate UNDER ARMOUR INC (UA) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 10.9%. Since the same quarter one year prior, revenues rose by 34.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share. UA's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.19, which illustrates the ability to avoid short-term cash problems. Net operating cash flow has significantly increased by 739.08% to $101.87 million when compared to the same quarter last year. In addition, UNDER ARMOUR INC has also vastly surpassed the industry average cash flow growth rate of 4.17%. UNDER ARMOUR INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UNDER ARMOUR INC increased its bottom line by earning $0.75 versus $0.61 in the prior year. This year, the market expects an improvement in earnings ($0.94 versus $0.75). The gross profit margin for UNDER ARMOUR INC is rather high; currently it is at 51.99%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 2.90% trails the industry average. You can view the full analysis from the report here: UA Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE

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text Why FireEye (FEYE) Stock Is Up Today
Tue, 02 Sep 2014 19:42 GMT

NEW YORK (TheStreet) -- Shares ofaFireEyea rose 8.09% to $33.66 in late afternoon trading on Tuesday after news broke thataHome Depota may have suffered a major credit card breach. "Multiple banks say they are seeing evidence that Home Depot stores may be the source of a massive new batch of stolen credit and debit cards that went on sale this morning in the cybercrime underground," KrebsonSecurity.com reported. "Home Depot says that it is working with banks and law enforcement agencies to investigate reports of suspicious activity." The news sent cyber security stocks higher in Tuesday trading. FireEye rose on high volume, as more than 15 million shares had changed hands, nearly triple the average volume ofa5,452,830.aFortineta also hit a new 52-week high of $26.64. Must Read:aWho Doesn't Love Yelp? STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. FEYE data by YCharts EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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NEW YORK (TheStreet) -- Wynn Resorts shares are down -4.7% to $183.83 on Tuesday following news of a third straight month of revenue decline in China'saMacau gaming region. Gaming revenue fell 6.1% during the quarter to $3.6 billion during August, a much steeper decline than the 2% analysts were expecting for the period. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Revenue has been hurt by Chinese government's probe into governmental corruption in which 84,000 government officials have been disciplined since the beginning of this year. The government review, known as a plenum, is expected to conclude inaOctober. TheStreet has a full review of the Macau region's August gaming numbers here. TheStreet Ratings team rates WYNN RESORTS LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate WYNN RESORTS LTD (WYNN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows: Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, WYNN RESORTS LTD's return on equity significantly exceeds that of both the industry average and the S&P 500. The revenue growth came in higher than the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 6.0%. Growth in the company's revenue appears to have helped boost the earnings per share. Powered by its strong earnings growth of 56.25% and other important driving factors, this stock has surged by 39.79% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WYNN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. WYNN RESORTS LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WYNN RESORTS LTD increased its bottom line by earning $7.17 versus $4.81 in the prior year. This year, the market expects an improvement in earnings ($8.57 versus $7.17). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 57.1% when compared to the same quarter one year prior, rising from $129.79 million to $203.91 million. You can view the full analysis from the report here: WYNN Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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text Why PG&E (PCG) Stock Is Gaining Today
Tue, 02 Sep 2014 19:32 GMT

NEW YORK (TheStreet) --aPG&E was gaining 1.2% to $47.05 Tuesday after California Public Utilities Commission judges issuedaa $1.4 billion penalty for the 2010 natural gas pipeline explosion in San Bruno. The figure would be the largest safety-related penalty issued by the California Public Utilities Commission. The number is lower than a staff recommendation of $2.25 billion in penalties for the explosion that killed eight people and destroyed 38 homes, according to Bloomberg. The California Public Utilities Commission's five commissioners still have to approve the proposal for the fine, and can offer alternatives if they choose. PG&E has the option to appeal the ruling. Must Read:a50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates PG&E CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation: "We rate PG&E CORP (PCG) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: Despite its growing revenue, the company underperformed as compared with the industry average of 7.2%. Since the same quarter one year prior, revenues slightly increased by 4.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. PG&E CORP's earnings per share declined by 23.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, PG&E CORP reported lower earnings of $1.84 versus $1.91 in the prior year. This year, the market expects an improvement in earnings ($3.05 versus $1.84). Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels. Even though the current debt-to-equity ratio is 1.01, it is still below the industry average, suggesting that this level of debt is acceptable within the Multi-Utilities industry. Despite the fact that PCG's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.52 is low and demonstrates weak liquidity. The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Multi-Utilities industry and the overall market, PG&E CORP's return on equity is below that of both the industry average and the S&P 500. You can view the full analysis from the report here: PCG Ratings Report EXCLUSIVE OFFER:aSee inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners.aClick here to see the holdings for FREE.

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NEW YORK (TheStreet) --aAscent Solar Technologies was gaining 12.7% to $3.19 Tuesday after announcing a new common stock investment of about $8 million. The new common stock investment is led by TFG Radiant Investment, the company's largest shareholder, and Series A investor Seng Wei Seow. For the first tranche of the Stock Purchase Agreement, Ascent issues 845,309 common shares each to TFG Radiant and Seow for a fixed per share price of $2.366, a 30% premium over its Friday closing price. In the second tranche the company plans to issue 1,425,000 shares to TFG Radiant at $2.80 a share. The second tranche is expected to close shortly after a special shareholder meeting in October, if shareholders approve the issuance. Must Read:a50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates ASCENT SOLAR TECHNOLOGIES as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation: "We rate ASCENT SOLAR TECHNOLOGIES (ASTI) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally high debt management risk." Highlights from the analysis by TheStreet Ratings Team goes as follows: ASCENT SOLAR TECHNOLOGIES's earnings per share declined by 38.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, ASCENT SOLAR TECHNOLOGIES reported poor results of -$6.70 versus -$6.40 in the prior year. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 36.3% when compared to the same quarter one year ago, falling from -$6.43 million to -$8.77 million. Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, ASCENT SOLAR TECHNOLOGIES's return on equity significantly trails that of both the industry average and the S&P 500. Net operating cash flow has decreased to -$6.51 million or 26.80% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower. Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 76.37%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 38.46% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now. You can view the full analysis from the report here: ASTI Ratings Report EXCLUSIVE OFFER:aSee inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners.aClick here to see the holdings for FREE.

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text Why USG (USG) Stock Is Advancing Today
Tue, 02 Sep 2014 19:10 GMT

NEW YORK (TheStreet) -- Shares of USG Corp.a are up 2.35% to $29.65 following a Barron's article over the weekend which said that "it typically takes a few months before the sound of shovels hitting dirt at a new housing project leads to pay dirt for [the] wallboard maker. The delay, however, bodes well for USG investors, who can expect to see the recent upswing in housing starts reflected in the company's results shortly." USG, based in Chicago, also makes ceiling tiles and other building products, and "has climbed out of a deep hole since the housing market crashed. But its results have been depressed, as builders remain reticent to ramp up construction. That's created an opportunity," Barron's said. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates USG CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate USG CORP (USG) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: USG's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 3.5%. Growth in the company's revenue appears to have helped boost the earnings per share. Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock. The gross profit margin for USG CORP is rather low; currently it is at 21.31%. Regardless of USG's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, USG's net profit margin of 6.01% compares favorably to the industry average. The debt-to-equity ratio is very high at 2.79 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, USG's quick ratio is somewhat strong at 1.46, demonstrating the ability to handle short-term liquidity needs. You can view the full analysis from the report here: USG Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE

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NEW YORK (TheStreet) --aShares ofaPetrobrasa rose to a new 52-week high of $20.87 on Tuesday after Brazilian presidential candidateaMarina Silvaareleased her platform, which could aid the state-owned energy company. Citigroupa analyst Pedro Medeirosaselected three points from the platform that could help Petrobras, includinga"the immediate correction to prices that had been restricted and the creation of mechanisms that allow visible adherence to market prices. PBR could increase its EBITDA by R$13 billion if gasoline and diesel prices are adjusted back to parity." Silva earned the Brazilian Socialist Party nomination afteraEduardo Camposadied in a plane crash. She has become a viable candidate to unseat incumbent presidentaDilma Rousseff, as both had 34% of the votes in the latest poll on Aug. 29. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Separately, TheStreet Ratings team rates PETROBRAS-PETROLEO BRASILIER as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate PETROBRAS-PETROLEO BRASILIER (PBR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: PBR's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 3.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. Compared to its closing price of one year ago, PBR's share price has jumped by 36.96%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year. PETROBRAS-PETROLEO BRASILIER's earnings per share declined by 21.7% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, PETROBRAS-PETROLEO BRASILIER's EPS of $1.70 remained unchanged from the prior years' EPS of $1.70. This year, the market expects an improvement in earnings ($3.74 versus $1.70). The gross profit margin for PETROBRAS-PETROLEO BRASILIER is currently lower than what is desirable, coming in at 32.09%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.02% trails that of the industry average. Net operating cash flow has decreased to $6,413.00 million or 18.05% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower. You can view the full analysis from the report here: PBR Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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NEW YORK (TheStreet) -- Coal, gold miningaand shipping sectors are appealing right now to venture capitalists. These daring marketeers will invest in a wide range of companies, hoping one or two become the next Amazon or Google .a The most prominent example of an individual doing this in stocks was the legendary investor Sir John Templeton during The Great Depression. He bought 100 shares of every company on the New York Stock Exchange selling for less than $1 during the Great Depression.aWhen recovery came, he made his fortune. Read More: Warren Buffett's Top 10 Dividend Stocks It is much easier to do what Templeton did than to accomplish what a venture capitalistamust do to profit. For investors buying stocks, it just requires faith that an industry group will not go away for good.aThe three sectors cited above are now offering the potential for long term gains after recovery. Rather than seek out each individual stock, look at the sector funds. None of these are going away forever. But the exchange traded funds for each are down in the present bull market rally: Market Vectors Coala is off by 0.46% with the Standard & Poor's 500 Index up more than 9% for 2014. iShares MSCI Gold Minersa is down more than 3% for the last year. Close to $29 in June 2010, Claymore Delta Global Shippinga is now trading at less than $22.80. Read More: 10 Stocks George Soros Is Buying Many individual companies in these sectors are still struggling.aThere have been many bankruptcies due to the Great Recession. But it is getting to the point where those remaining firms will most likely survive. That can be seen in how the exchange traded funds for these industries have rallied in recent market action. Claymore is up 4.69% for the last month. Over that same period, iShares rallied by 2.56%. The last four weeks of trading has witnessed a 3.26% spike for Market Vectors Coal. That should embolden investors to call on their inner Sir John Templeton and look for bargains. Read More: 7 Stocks Warren Buffett Is Selling in 2014 There is certainly no shortage of publicly traded companies that appeal to a wide venture capitalist type portfolio. A quick search on Finviz brings up 14 shipping stocks selling for $5 a share or less. In the coal group, Arch Coal and Alpha Natural Resources aboth trade at less than $4 a share. Arch Coal traded at more than $77 a share in June 2008. At that time, Alpha Natural Resources was trading higher than $108. Finviz has 29 stocks under $5 a share in the gold sector. Read More: 10 Stocks Carl Icahn Loves in 2014 How to proceed? Coal should be the most attractive sector as it is the fossil fuel that is increasing most in use, as detailed in a recent article in TheStreet. Investors are also starting to gobble up coal assets, too. That is also happening with shipping. There is no economic use for gold like that for coal and shipping, but if inflation and political stability look to increase, so too should the price of the yellow metal. Most important of all, complete a thorough due diligenceaprocess before investing.aTry to avoid debt as much as possible. Stay away from stocks with huge short positions (more than 5% is considered to be troubling). Look for institutional ownership and insider buying as it is comforting to have those with more resources and a greater knowledge of the company owning the stock in a down industry. If the company has a consistent dividend history, even better as that is an impressive show of strength, especially when a sector is in disfavor. At the time of publication, the author held no positions in any of the stocks mentioned. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage. aTheStreet Ratings team rates ARCH COAL INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:a "We rate ARCH COAL INC (ACI) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk." You can view the full analysis from the report here: ACI Ratings Report

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NEW YORK (TheStreet) -- ACADIA Pharmaceuticals shares are up 12.9% to $27.07 on Tuesday afterathe company announced that its Parkinson's disease psychosis treatment NUPLAZID was granted a Breakthrough Therapy designation from the FDA. Drugsameeting the FDA Breakthrough Therapy requirements must treat life threatening diseases and should have preliminary clinical evidence demonstrating a substantial improvement over current treatment options. The FDA reserves the right to expedite the review process for drugs meeting this criteria and ACADIA plans to submit the drug to the FDA for approval later this year. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates ACADIA PHARMACEUTICALS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: "We rate ACADIA PHARMACEUTICALS INC (ACAD) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow." Highlights from the analysis by TheStreet Ratings Team goes as follows: You can view the full analysis from the report here: ACAD Ratings Report ACAD data by YCharts EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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NEW YORK (TheStreet) -- Shares ofaMicron Technologya fell 3.34% to $31.51 in afternoon trading Tuesday amid concerns of oversupply in DRAM memory chips in 2015. The decline stemmedafrom "negative articles" on the "capacity/supply" estimatesain the memory chip market, Wedbush Securities analyst Betsy Van Hees told MarketWatch.aDRAM chip makers could increase their capacity in the fourth quarter, which could have a negative effect, such as oversupply, on companies like Micron, according to a Monday article in EE Times. More than 18 million shares had changed hands as of 2:33 p.m., compared to the average volume ofa25,394,100. The stock had an intraday high of $32.60 and low of $31.45. Must Read:a3 Stocks Dragging The Electronics Industry Downward STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates MICRON TECHNOLOGY INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate MICRON TECHNOLOGY INC (MU) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook." Highlights from the analysis by TheStreet Ratings Team goes as follows: MU's very impressive revenue growth greatly exceeded the industry average of 10.4%. Since the same quarter one year prior, revenues leaped by 71.8%. Growth in the company's revenue appears to have helped boost the earnings per share. Powered by its strong earnings growth of 1600.00% and other important driving factors, this stock has surged by 147.80% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MU should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. MICRON TECHNOLOGY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MICRON TECHNOLOGY INC turned its bottom line around by earning $1.00 versus -$1.04 in the prior year. This year, the market expects an improvement in earnings ($3.21 versus $1.00). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 1774.4% when compared to the same quarter one year prior, rising from $43.00 million to $806.00 million. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MICRON TECHNOLOGY INC's return on equity significantly exceeds that of both the industry average and the S&P 500. You can view the full analysis from the report here: MU Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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NEW YORK (TheStreet) -- Specialty drug company Endo International has grossly underperformed its peers. With shares down 5.5% on the year to date, trailing the health care sector's 11% gain, according to Morningstar, Endo's management is under significant shareholder pressure. Shares trade close to $64. By contrast the S&P 500 is up 6% so far in 2014. Investors are debating whether to sell out and movie on. Don't be in such a rush just yet. Despite the stock underperformance, the Endo of 2014 is not the same company once known for chronically shooting itself in the foot. I believe in the next 12 to 18 months, patient investors will be rewarded with a stock that is 20% higher. Read More: 7 Stocks Warren Buffett Is Selling in 2014 Despite the weak top-line growtha(1% year-over year), the company's management, led by new CEO Rajiv De Silva, has adopted an aggressive growth strategy. This transformation has produced several accretive deals aimed at diversifying the business. All told, Endo is now well-positioned to seize significant market share in the next couple of years. What's more, based on 2015 earnings estimates of $4.34, according to Yahoo! Finance, these shares are cheap trading at a multiple of 14. This is eight points lower than the industry average price-to-earnings ratio of 22. This puts Endo, which competes withaForest Labs and Teva Pharmaceuticals , one of the few bargains left in this sector. The company's recent $575 million dealafor DAVA Pharmaceuticals is one recent example of how committed Endo has become to generating growth. Nevertheless, what I think is more important to consider is the extent to which Endo's generics business will be boosted by the 13 products DAVA already has on the market. With more than five additional generic products set to hit the market in 2015, Endo, whose generics pipeline suddenly looks stronger, saw a deal it couldn't pass up. This means 2015 looks even more promising than current estimates suggest. For a business that is already growing at close to 20% year over year, the deal for DAVA, which should close later this year, is just what the doctor ordered. Read More: Sunesis Takes a Run Through the Feuerstein-Ratain Rule In terms of the deal itself, at $575 upfront cash Endo is paying just six times trailing earnings before interest, taxes, depreciation and amortizatoin. These deals usually command an Ebitda multiple of eight times. So Endo is buying not only a highly profitable business but one that holds 30% market share in a drug called Methotrexate, which treats various forms of cancer. With this deal, Endo immediately surpasses both Teva Pharmaceuticals and Mylan , which command market shareaof 12% and 17%, respectively. It's hard to ignore how quickly the new management team has turned around the company's fortunes. Assuming that DAVA adds, say, 40 cents to 50 cents per share in earnings in 2015, which is almost 13% accretion, Endo will emerge as one of the best health care stocks to own, if it's not already. Read More: Exelixis Drug Fails Pivotal Prostate Cancer Study At around $64 per share, and a forward P/E of 14, Endo offers strong upside with minimal risk. There is still more work to be done, but this company is quickly building itself into a top-tier global specialty health care leader. With that year-to-date stock underperformance, there won't be a better time to buy. At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time. Follow @Richard_WSPB // 0;if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); // ]]> This article is commentary by an independent contributor, separate from TheStreet's regular news coverage. TheStreet Ratings team rates ENDO INTERNATIONAL PLC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate ENDO INTERNATIONAL PLC (ENDP) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. You can view the full analysis from the report here: ENDP Ratings Report

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NEW YORK (TheStreet) -- Shares of Home Depot Inc. are down -2.32% to $90.87 after it was reported that the retailer may have suffered a massive credit card breach, according to KrebsonSecurity.com. "Multiple banks say they are seeing evidence that Home Depot stores may be the source of a massive new batch of stolen credit and debit cards that went on sale this morning in the cybercrime underground. Home Depot says that it is working with banks and law enforcement agencies to investigate reports of suspicious activity, Krebs said. Home Depot confirmed to Krebs that the company is investigating. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. "...we are looking into some unusual activity and we are working with our banking partners and law enforcement to investigate," Home Depot said. There are signs that the perpetrators of this apparent breach may be the same group of Russian and Ukrainian hackers responsible for the data breaches at Target , among others. The banks contacted by Krebs all purchased their customers' cards from the same underground store - rescator[dot]cc - which on September 2 moved two massive new batches of stolen cards onto the market. TheStreet Ratings team rates HOME DEPOT INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation: "We rate HOME DEPOT INC (HD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated." Highlights from the analysis by TheStreet Ratings Team goes as follows: HD's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 5.7%. Growth in the company's revenue appears to have helped boost the earnings per share. The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year. HOME DEPOT INC has improved earnings per share by 22.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HOME DEPOT INC increased its bottom line by earning $3.75 versus $3.00 in the prior year. This year, the market expects an improvement in earnings ($4.50 versus $3.75). The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 14.2% when compared to the same quarter one year prior, going from $1,795.00 million to $2,050.00 million. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Specialty Retail industry and the overall market, HOME DEPOT INC's return on equity significantly exceeds that of both the industry average and the S&P 500.a You can view the full analysis from the report here: HD Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE

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NEW YORK (TheStreet) -- It has been a long time since the stock market had a correction. Today we're going to look at the potential lows the major averages could see when we do get one. At the start of August the five major averages were in a technical formation that came close to signaling a correction. Read More: 10 Stocks Carl Icahn Loves in 2014 On Friday, Aug. 8, the Dow Jones Industrial Average, S&P 500, Dow Jones Transportation Average and Russell 2000 had negative weekly charts with weekly closes below their five-week modified moving averages and with declining 12x3x3 weekly slow stochastics. The Nasdaq did not, however. The Nasdaq closed that week one point above its five-week modified moving average with its weekly stochastic still overbought with a reading of more than 80.00. The following week, stocks began an impressive rebound and so did not confirm a correction. I have always said that you cannot have a correction or bear market without all five major averages confirming market tops simultaneously. Without a fully negative configuration, new highs were very likely, and three of the five averages indeed went on to new highs. The Dow industrials and S&P 500 set all-time intraday highs at 17,153.90 and 2005.04, respectively, on Aug. 26. After I wrote, "Apple, Intel, Microsoft, Netflix, Tesla Can Lead the Nasdaq Back Above 5000" on Aug. 28, the Nasdaq traded to a multiyear intraday high at 4580.27 on Aug. 29. I would argue that the current situation is an equity bubble. Read More: How the American Air Merger Helped Charlotte, Philly and Fort Wayne Today's first table illustrates the bubble risks: The table shows the highs that were set between July 2007 and May 2008, before the 2008 crash, and the risks of what could happen when the current bubble bursts. Investors should print out this table as a reminder of these critical reflection levels. The Russell 2000 was the first to peak, at 856.48 in July 2007. It declined 60% to its March 2009 low at 342.59. This index rallied 254% from this low to its all-time high at 1213.55 on July 1, 2014. The Russell 2000 is 42% above its prior high, which translates to downside risk of 29% to the prior high and 72% to the March 2009 low. The Dow industrials peaked at 14,125 in October 2007 and declined 54% to the March 2009 low at 6470. This index rallied 165% from this low to its all-time high at 17,153.80 set on Aug. 26, 2014. The Dow Jones Industrial Average is 21% above its previous high, which translates to downside risk of 18% to the prior high and 62% to the March 2009 low. The S&P 500 peaked at 1576.0 in October 2007 and declined 58% to its "devilish" March 2009 low at 666.8. This index rallied 201% from this low to its all-time high at 2005.04 set on Aug. 26, 2014. The S&P 500 is 27% above its prior high, which translates to downside risk of 21% to the prior high and 67% to the March 2009 low. The Nasdaq peaked at 2861 in November 2007 and declined 56% to its March 2009 low at 1266. This index rallied 262% from this low to its all-time high at 4580.27 on Aug. 29, 2014. The Nasdaq is 60% above its prior high which translates to downside risk of 38% to the prior high and 72% to the March 2009 low. Read More: Apple's Next iPhone: What We Think We Know The Dow Jones Transportation Average was the last to peak at 5537 in May 2008 and declined 62% to its March 2009 low at 2134. This index rallied 299% from this low to its all-time high at 8515.05 set on July 23, 2014. The transports are 54% above their prior high, which translates to downside risk of 35% to the prior high and 75% to the March 2009 low. It is difficult to predict when these downside risks will be triggered, but the second table tracks the status of the weekly charts and provides the value levels and risky levels that can be used by investors to adjust market-related positions until we confirm the stock market peak. The Dow Jones Industrial Average has a positive weekly chart with its five-week modified moving average at 16,854. This index is up only 3.1% year to date with monthly and semiannual value levels at 16,615 and 16,301, respectively, with quarterly and semiannual risky levels at 17,753 and 18,522, respectively. Annual value levels lag at 14,835 and 13,467. The S&P 500 has a positive weekly chart with its five-week MMA at 1965.4. This index is up 8.4% year to date with monthly and semiannual value levels at 1978.2 and 1789.3, respectively, and with quarterly and semiannual risky levels at 2052.3 and 2080.3, respectively. Annual value levels lag at 1539.1 and 1442.1. The Nasdaq has a positive but overbought weekly chart with its five-week MMA at 4451. This index is up 9.7% year to date with monthly and semiannual value levels at 4469 and 3972, respectively, with a quarterly pivot at 4569 and semianannual risky level at 4642. Annual value levels lag at 3471 and 3063. The Dow Jones Transportation Index has a positive weekly chart with its five-week MMA at 8273. This index is up 14% year to date with quarterly and semiannual value levels at 8256 and 7423, respectively, with a monthly pivot at 8410 and semianannual risky level at 8447. Annual value levels lag at 6249 and 5935. Read More: Illiad Considers Partners for T-Mobile USA Bid The Russell 2000 has a positive weekly chart with its five-MMA at 1153.95. This index is up just 0.9% year to date with monthly and semiannual value levels at 1149.70 and 1139.81, respectively, with semianannual and quarterly risky levels at 1285.37 and 1293.11, respectively. Annual value levels lag at 966.72 and 879.39. At the time of publication the author held no positions in any of the stocks mentioned. Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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NEW YORK (TheStreet) -- U.S. Silica makes sand, a commodity which you might think is abundantly available virtually everywhere -- but this is not just any sand. This companyais the biggest local producer of commercial silica sand, a special type used in drilling for shale oil and gas. Silica sand, which is already in short supply, is used by energy companies as a cheaper alternative to expensive ceramics such as those produced by CARBO Ceramics . Other companies such asaEmerge Energy Services and Hi-Crush Partners a are also producing this sand.a Read More: How to Keep Fraud Threats From Ruining Your Mobile Banking 100-year-old U.S. Silica has been supplying the silica sand to the makers of a variety of products like glass and building products, as well as to foundries. However, the shale boom opened up a new market, as the company started selling the sand to some of the biggest names in the energy space, including Schlumberger and Halliburton . These oilfield services companies use the silica sand during fracking, the process of extracting oil or gas from shale rocks. Moreover, U.S. Silica's transportation assets allow it to deliver its product to customers quickly and efficiently. The company has a fleet of more than 4,200 railcars, which is forecast to grow to over 5,100 by the end of this year. U.S. Silica has predicted that it would double its adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, from 2012 to 2016, crossing $300 million over the next couple of years. In an email to TheStreet, U.S. Silica'sadirector for investor relations and corporate communications Mike Lawson has said that the company is currently "on target" to meet this goal. Shares of fracking sand producers have soared this year, and U.S. Silica is no exception. U.S. Silica's stock has nearly doubled for the year to date to nearly $72, pricedamore than 45 times its trailing earnings. Bargain hunters should wait for a dip before buying this stock, as the company's shares have traded below 35 times its trailing earnings throughout most of the last two years. Read More: Goldman Sachs' 50 Stocks That Matter Most to Hedge Funds The increasing production of shale oil and gas has driven the growth of U.S. Silica over the last few years. In 2010, U.S. Silica got more than half of its revenue and contribution margins (similar to adjusted operating income) from its Industrial & Specialty Products segment. However, in 2013, the company generated more than 60% of its revenues and contribution margins from the oil and gas segment. During this period, between 2010 and 2013, U.S. Silica's revenues and adjusted earnings more than doubled on the back of strong demand for fracking sand. Analysts have said that the demand for the commodity could nearly double by 2016 from 2013, while the supply will remain short. And Lawson said that the "oil and gas side of the business will continue to drive the lion's share of the growth." The favorable demand-supply fundamentals have also allowed U.S. Silica to increase its prices twice this year. Fearing any additional pricing pressure, U.S. Silica's customers are going after long-term contracts, thereby creating reliable revenue streams going well into mid-2018 for around 60% to 65% of its production. U.S. Silica has made heavy investments to ramp up its production, building on organic growth as well as acquisitions. Its average annual capital spending has climbed significantly from just $14 million in 2009 and 2010 to more than $77 million in the subsequent years and is forecast to touch around $100 million this year. These investments have enabled U.S. Silica to ramp up its production capacity. The company has recently started its new fracking sand mine and plant at Utica, Ill. The facility will start working at its full capacity of 1.5 million tons per annum by the beginning of September, bringing U.S. Silica's total annual capacity to 7.5 million tons. Read More: Best Buy Needs to Get a Grip and Hire a New, Visionary CEO Additionally, U.S. Silica has recently completed the $98 million acquisition of its peer Cadre Services, which improves the company's annual capacity by 800,000 tons and gives it exposure to Texas's prolific Permian Basin region. Moreover, U.S. Silica is also planning to construct a new 3 million ton per annum fracking sand plant at Fairchild, Wisc., by the third quarter of 2015. At the time of publication, the author held no positions in any of the stocks mentioned. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage. TheStreet Ratings team rates U S SILICA HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate U S SILICA HOLDINGS INC (SLCA) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value." You can view the full analysis from the report here: SLCA Ratings Report

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a NEW YORK (TheStreet) -- Hershey's new logo, with the word "Hershey" next to a Kiss candy, is being slammed on social media,awith some comparing it withahuman excrement.a The company response, which was sent to TheStreet.com, is the logo is part of a "comprehensive visual identity system" built around "iconic," even "beloved" brands. So here is the thing, social media. The logo is not about you. I don't think it's even about America or the West. It's about China, as a quick visit to the company's own Web siteareveals. Read More: 10 Stocks George Soros Is Buying Of all Hershey's international markets, China is the one where the Kiss is the most prominently featured product. It's also a vital market for Hershey, with sales of over $100 million last year; 40% of Kiss sales are now outside the U.S. After entering the market through a factory co-owned by Lotte, a Korean company, Hershey doubled down on the market last year, buying 80% of Shanghai Golden Monkeyafor an estimated $584 million. Read More: How the American Air Merger Helped Charlotte, Philly and Fort Wayne Hershey's overall goal, announced two years ago, is for 26% growth in its largest international markets, including China. While Hershey dominates the U.S. market, it only has a 7% market share globally - Mars, Mondelez and Nestle all beat it on a global basis.aBut it has been missing those international growth goals regularly, making up for it with stronger resultsain North America. This has not gone unnoticed by Wall Street. Since hitting a high of over $108 a share in February, the stock has been falling and currently trades around $91, down 6% for the year to date. Overall growth has slowed -- sales for the June quarter of this year were $1.578 billion against $1.508 billion a year earlier. The company is considered a mediocre yield stock, at 2.34%, about the rate you get on a 10-year Treasury. Which brings us back to the Hershey China Web site.aTake a close look and what do you see? I see mostly American faces. Check out its flagship Shanghai store a-- It's a proudly American brand selling an American image. This makes Hershey vulnerable to the "tipping point"asome analysts see in the U.S.-China relationship, which is being felt in the economic sphere where U.S. businesses complain China is using its antitrust law to harass U.S. companiesaand China complains some emigrants are criminals.a It's against this backdrop that Hershey made its decision on China. While internal e-mail addresses are at hersheys.com, the new logo drops the possessive apostrophe s, which is very confusing to Chinese speakers, and adds an image of the Kiss, its top-selling product in China. Having bought a major Chinese confectionary producer, Hershey is in no position to retreat from the China market. Asked about these issues, the company responded directly. "China continues to be a growth engine for Hershey," it said in a statement. The acquisition of Shanghai Golden Monkey is "another example of our commitment to China." The statement also notes that Hershey recently introduced a new brand, called Lancaster, specifically for the Chinese market and engineered for Chinese tastes. Read More: Apple's Next iPhone: What We Think We Know "The version of Lancaster sold in China is different than the U.S. version because it was specifically tailored for the distinct taste preferences and palates of Chinese consumers," the company said. Investors in Hershey hope it's a hit in any language. At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage. TheStreet Ratings team rates HERSHEY CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate HERSHEY CO (HSY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated." You can view the full analysis from the report here: HSY Ratings Report

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text Why Vale (VALE) Stock Is Down Today
Tue, 02 Sep 2014 17:48 GMT

NEW YORK (TheStreet) -- Shares of Vale SAa are down -1.19% to $12.90 in active trading today as theaBrazil-based metals and mining company and Glencore broke off talks over combining their nickel assets in Canada in a deal that could have produced over $1 billion in annual cost savings, sources told Reuters. The discussions over linking the two companies' neighboring nickel mining and processing facilities in the Sudbury basin in southeast Canada broke down partly due to disagreement over how to share the costs and savings and to worries about government and labor union reaction to potential job cuts and shutdowns, the sources said, adding that recovery in nickel prices has made cost rationalization less pressing. "Both sides more or less agreed on what the optimum structure of a combined Sudbury business would look like, but to enable that to be created, very difficult decisions needed to be taken, and the appetite or the ability to take those decisions was not there," according to a Reuters source. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Shares of Glencore are up 0.95% to $12.06. TheStreet Ratings team rates VALE SA as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate VALE SA (VALE) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity." Highlights from the analysis by TheStreet Ratings Team goes as follows: VALE's revenue growth has slightly outpaced the industry average of 4.4%. Since the same quarter one year prior, revenues slightly increased by 4.8%. Growth in the company's revenue appears to have helped boost the earnings per share. The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 1113.0% when compared to the same quarter one year prior, rising from $117.72 million to $1,428.00 million. VALE SA reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VALE SA reported lower earnings of $0.01 versus $0.94 in the prior year. This year, the market expects an improvement in earnings ($1.60 versus $0.01). The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, VALE SA underperformed against that of the industry average and is significantly less than that of the S&P 500. VALE has underperformed the S&P 500 Index, declining 11.90% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock. You can view the full analysis from the report here: VALE Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE

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NEW YORK (TheStreet) -- Three months ago, Mario Draghi, president of the European Central Bank, set the bank on a path to lower the value of the euro. At the time, the market value of the euro was about $1.36. The concern at that time was about the continuing disinflation of the eurozone and the possibility that the European continent was heading for a recession. The value of the euro has dropped since then, just breaking $1.32 around Aug. 20. Read More: Chipotle's Monty Moran Unwraps the Restaurant's Success Story The reason for this decline: Italy was declared in a recession after the 2014 second quarter GDP numbers were announced. German growth for the first half of the year was flat. And the French economy was doing so badly that French president Francois Hollande had to re-structure his government to try to reform his country's economy. Now, the spotlight is back on Draghi and the ECB, which has a policy meeting this Thursday. The question is -- given all the bad news that has been reported over the past month -- what will Draghi and the ECB do to combat the looming eurozone recession and a possible Japan-like stagnation? The first thing to come into anyone's mind these days is for Draghi to emulate the Federal Reserve system in the U.S. and move to a policy of quantitative easing. Draghi has seemed reluctant to make such a move. Although Draghi has stated in the past that he would do whatever was necessary to spur on the economies of Europe and keep the currency union together, he has dragged his feet concerning the move to quantitative easing. Read More: Dollar General Offers Major Antitrust Concessions as It Lifts Bid for Family Dollar For one thing, as Draghi looks toward America, he sees that in terms of boosting on economic growth, quantitative easing has done practically nothing. If anything, quantitative easing has provided support for the banking system and helped the regulators to eliminate troubled banks and reduce the size of the banking system in an orderly fashion. This effort has gone amazingly well. But quantitative easing has also helped to propel the American stock market upwards and keep the lid on longer-term interest rates. The Standard & Poor's 500 stock index has penetrated the 2,000 ceiling for an all-time high, and the yield on the 10-year U.S. Treasury note, which was expected to run up above 3.00% this year, now rests around 2.35%. Draghi has seen the liquidity provided by the Fed's quantitative easing go into and remain within the financial sector of the economy, with very little spilling into the production sector. In addition, Draghi has become more vocal about the role that the governments of the individual countries can do to reform their economies. Japanese stagnation may be an example of what must occur before a country can really be competitive within the global economy again. Matteo Renzi, the prime minister of Italy, is intent on trying to bring the Italian economy into the 21st century. The upheaval within Hollande's government in France is seen as another possible opportunity for European restructuring. With these governmental changes, there is continued recognition that the eurozone needs to form into more of a political union if the euro-currency region is to be fully successful. But reforming government and economies takes time, something that the eurozone does not seem to have now. All the pressure seems to fall back onto Draghi and the ECB. But maybe Draghi might not move to a quantitative easing program, in which the central bank acquires the sovereign debt of member nations. One suggestion is for the ECB to purchase asset-backed securities -- bundles of repackaged loans. The ECB does not have a detailed program in place to present at this time. But the ECB could announce it is going to purchase ABS in the future and will provide the details later. Read More: How the American Air Merger Helped Charlotte, Philly and Fort Wayne A lot of mystery surrounds the meeting coming up on Thursday. The financial markets seem to believe that the ECB will do something, and that something will be expansionary. At 11:00 am in the U.S., the value of the euro dropped to about $1.320, the lowest it has been recently. Betting seems to be on the some form of ECB loosening. At the time of publication, the author held no positions in any of the stocks mentioned. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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NEW YORK (TheStreet) -- U.S. stock markets dipped Tuesday afternoon after fluctuating between gains and losses for much of the day as investors returned from the U.S. Labor Day weekend to a trio of good U.S. economic reports. The ISM manufacturing index hit a stronger-than-anticipated 59 in August, while construction spending rebounded by a more-than-forecast 1.8% in July. The Markit PMI manufacturing index, at 57.9 in August, increased to its highest level since April 2010. Watch the video below for a look at how U.S. markets are doing in midday trading Tuesday: WATCH: More market update videos on TheStreet TV Off their intraday lows following the economic news, the Dow Jones Industrial Average was down 0.4% to 17,030.69 and the S&P 500 was down 0.34% to 1,996.52. The S&P hit a new intraday high of 2,006.12 before pulling back. The Nasdaq wasadown 0.02% toa4,579.33. "Investors are going to have to figure out how they feel about better economic data in the context of less Fed accommodation. Assuming forecasts hold, this is going to be the struggle as the year progresses," said Dan Greenhaus, chief strategist at BTIG. The Federal Reserve is expected to keep a close eye on Friday's August nonfarm payrolls report. The central bank's labor market conditions index that was referenced by Fed Chair Janet Yellen in her Jackson Hole, Wyo., speech sources much of its data points from these numbers. Read More: Apple's Next iPhone: What We Think We Know In the eurozone, the attention was being squarely focused on Thursday's meeting of the European Central Bank and hopes of moves toward a policy of quantitative easing. U.S. equitiesaclosed slightly higher on Friday, capping four straight weekly gains and booking their best August since 2000, despite geopolitical concerns weighing on the markets. The close also marked the biggest monthly gain since February. The S&P 500 struck a new closing high on Friday. While September is often viewed with a degree of skittishness by investors -- it is the only month with negative average returns dating back to 1980 -- the S&P has actually been up in eight of the last 10 Septembers and 63% of Septembers since 1995. Average returns have been skewed by outliers, making the month's positive median gain more relevant focus on, said Greenhaus. In corporate news, Dollar General raised its offer for Family Dollar on Tuesday to $80 a share, or $9.1 billion, from $78.50 a share. Dollar General rose 0.67% to $64.42. Family Dollar was up 0.57% to $80.29. Norwegian Cruise Line said it will acquire Prestige Cruises International, the parent company of Oceania Cruises and Regent Seven Seas Cruises, for $3.025 billion. Norwegian Cruise Line surged 11.08% to $37. France's Iliad may improve its $15 billion offer for T-Mobile US but has set specific limits on how much money it would raise to fund any deal, Reuters reported. T-Mobile gained 0.73% to $30.30. Apple rose 0.81% to $103.33, adding to gains ahead of its Sept. 9 press eventawhereait's widely expected to confirm thatathe nextaiPhone, which may be called the iPhone 6 or the iPhone Air, will officially go on sale later this month. United States Oil Fund was down 2.63% to $34.81 whileathe SPDR Gold Trust was off 1.86% to $121.55.a Read More: Stock Market Today: S&P Books Best August Since 2000 Despite Geopolitical Threatsa --By Andrea Tse in New York Follow @AndreaTTse

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NEW YORK (TheStreet) – Sonoco investors have been patient all year, waiting for management to uphold their promise of delivering long-term value. That patience has paid off. Sonoco, a global provider of a variety of consumer packaging products, just announced a $383 million all-cash dealafor Weidenhammer Packaging Group. Weidenhammer, headquartered in Hockenheinm Germany, will strengthen the South Carolina-based Sonoco in areas like decorated convenience packaging. Not to mention, Sonoco will now have much needed growth opportunities in Europe. Read More: Warren Buffett's Top 10 Dividend Stocks Shares, at $41, are down 1.3% on the year to date; the S&P 500 is up 8% for the same period. But more gains are on the horizon. In the next 12 months, these shares should trade around $40 to $50, or 20% higher.a Weidenhammer's expertise in composite cans and composite drums will give Sonoco added capabilities in areas that would have taken years to develop on its own. Sonoco, which competes with Bemis Company and Rock-Tenn , now has added muscle and enough product differentiation to help expand its gross margins. The deal, which is expected to close in the fourth quarter of 2014, should be accretive to Sonoco's 2015 base earnings. Prior to the deal, Wall Street was looking for 2015 earnings of $2.69 per share, according to Yahoo! Finance. Sonoco may now be able to produce 2015 earnings of close to 9 cents per share. A Sonoco representative was not available for comment. Assuming that management can extract future accretive benefits from cost synergies and operational improvements, investors should do well. This is because aside from Sonoco's lead in areas like supply chain services and protective packaging, the company immediately becomes the global leader in rigid paper packaging. Sonoco will now be able to sell its product in emerging markets like South America and Eastern Europe. Read More: Iliad Considers Partners for T-Mobile USA Bid Also, Weidenhammer's innovative capabilities should help drive Sonoco's organic growth effortsathough what the company calls its i6 Innovation Process. All told, Sonoco could not have picked off a better company that aligns perfectly with its image profile and the priorities management has already outlined. Currently, Sonoco is just 8% away from a new 52-week high. Over the past five years, Sonoco investors have seen their wealth grow by roughly 75% and let's not forget the company's dividend yield of 3.20%, which makes Sonoco one of the best payers in its category. In other words, one year's stock performanceais not enough to assess the real value of the asset. Plus, with Weidenhammer coming on board, which should push Sonoco's annual revenue to over $5 billion ($4.85 billion in 2013), investors are guaranteed revenue growth not only for the balance of 2014, but also for all of next year. Factoring in potential synergies, Sonoco has just bought itself a strong catalyst for future price appreciation and higher profits. All investors need to do is sit back and let management work its magic. Read More: Dollar General Offers Major Antitrust Concessions as It Lifts Bid for Family Dollar At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time. Follow @Richard_WSPB // 0;if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); // ]]> This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff. TheStreet Ratings team rates SONOCO PRODUCTS CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation: "We rate SONOCO PRODUCTS CO (SON) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity." You can view the full analysis from the report here: SON Ratings Report

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text Why Finisar (FNSR) Stock Is Down Today
Tue, 02 Sep 2014 17:11 GMT

NEW YORK (TheStreet) --aFinisar was falling -5.8% to $19.13 Tuesday after Jefferiesa downgraded the company to "hold" from "buy." The analyst firm also lowered its price target for the company to $19 from $25. Analysts James Kisner and Jason North said that pricing pressure for Datacom optics "is 'brutal' right now' due to companies with "Spartan business models" and large footprints in China. The analysts wrote, "We are downgrading Finisar from Buy to Hold given our checks suggesting: 1) a "brutal" pricing environment for datacom optics, particularly in China, as well as in Telecom in N. America; 2) worse than expected share for FNSR in 100G Datacom; 3) an inventory correction in China; 4) vertical integration risks from Huawei and Cisco; 5) Looming potential price pressure/share loss from numerous start-ups and potentially Intel as the market transitions to 100G." Must Read:a50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. ----------------- Separately, TheStreet Ratings team rates FINISAR CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate FINISAR CORP (FNSR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 25.7%. Growth in the company's revenue appears to have helped boost the earnings per share. Although FNSR's debt-to-equity ratio of 0.25 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 3.13, which clearly demonstrates the ability to cover short-term cash needs. FINISAR CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FINISAR CORP turned its bottom line around by earning $1.09 versus -$0.07 in the prior year. This year, the market expects an improvement in earnings ($1.42 versus $1.09). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 641.2% when compared to the same quarter one year prior, rising from $3.88 million to $28.75 million. You can view the full analysis from the report here: FNSR Ratings Report EXCLUSIVE OFFER:aSee inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners.aClick here to see the holdings for FREE.

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NEW YORK (TheStreet) --aShares ofaLas Vegas Sandsa tumbled 6.37% to $62.27 in afternoon trading Tuesday after Macau gaming revenue fell in August, the third straight month of decline. Macau gaming revenue fell 6.1% year-over-yearaas China cracks down on corruption and declining Chinese housing prices reduced demand from rich VIP customers, according toaReuters.a Gambling revenue from Macau's 35 casinos dropped last month to 28.9 billion patacas, or $3.6 billion, compared to 30.7 billion patacas in the same period one year earlier. Analysts expected a 2% to 6% decline. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. More than 9 million shares had changed hands as of 1 p.m., compared to the average volumea4,570,250. Separately, TheStreet Ratings team rates LAS VEGAS SANDS CORP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate LAS VEGAS SANDS CORP (LVS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 5.5%. Since the same quarter one year prior, revenues rose by 11.8%. Growth in the company's revenue appears to have helped boost the earnings per share. Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year. LAS VEGAS SANDS CORP has improved earnings per share by 29.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LAS VEGAS SANDS CORP increased its bottom line by earning $2.79 versus $1.85 in the prior year. This year, the market expects an improvement in earnings ($3.69 versus $2.79). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 26.7% when compared to the same quarter one year prior, rising from $529.75 million to $671.43 million. 46.40% is the gross profit margin for LAS VEGAS SANDS CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.52% is above that of the industry average. You can view the full analysis from the report here: LVS Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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NEW YORK (TheStreet) -- McDonald's shares are down -0.9% to $92.87 on Tuesday after the company announced that it was overhauling the process forascrutinizing its Chinese meat suppliers by upping the number of spot check auditsaand appointing a new food safety chief. The move is a direct response to the tainted meat scandal that saw its meat and vegetable supplier's Chinese unit be investigated for repackaging expired chicken and beef to sell. McDonald's has since suspendedadoing business with OSI Group in China and replaced it with other suppliers in the region. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates MCDONALD'S CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate MCDONALD'S CORP (MCD) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: MCD's revenue growth has slightly outpaced the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 1.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. The debt-to-equity ratio is somewhat low, currently at 0.96, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.46, which illustrates the ability to avoid short-term cash problems. 44.52% is the gross profit margin for MCDONALD'S CORP which we consider to be strong. Regardless of MCD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MCD's net profit margin of 19.31% compares favorably to the industry average. MCDONALD'S CORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, MCDONALD'S CORP increased its bottom line by earning $5.56 versus $5.36 in the prior year. This year, the market expects earnings to be in line with last year ($5.56 versus $5.56). The change in net income from the same quarter one year ago has exceeded that of the Hotels, Restaurants & Leisure industry average, but is less than that of the S&P 500. The net income has decreased by 0.7% when compared to the same quarter one year ago, dropping from $1,396.50 million to $1,387.10 million. You can view the full analysis from the report here: MCD Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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text 5 Hated Earnings Stocks You Should Love
Tue, 02 Sep 2014 16:49 GMT

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally. Read More: 5 Stocks Poised for Big Breakouts This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly. That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news. Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if Wall Street doesn't like the numbers or guidance. If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend. With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week. Read More: 5 Toxic Stocks You Need to Sell Now G-III Apparel Group My first earnings short-squeeze play is apparel player G-III Apparel Group , which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect G-III Apparel Group to report revenue of $390.98 million on earnings of 16 cents per share. Recently, Wunderlich Securities initiated coverage on shares of G-III Apparel Group with a buy rating and a $92 per share price target. Wunderlich thinks the company's management team is in the right position to drive organic and acquisition-driven growth and that G-II Apparel Group is among the top-positioned players in the apparel sector. The current short interest as a percentage of the float for G-III Apparel Group is notable at 7.3%. That means that out of the 17.42 million shares in the tradable float, 1.28 million shares are sold short by the bears. This is a decent short interest on a stock with a very low float. Any bullish earnings news could easily spark a sharp short-covering rally post-earnings as the bears jump to cover some of their bets. From a technical perspective, GIII is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending a bit over the last month, with shares moving higher from its low of $76.43 to its recent high of $84.95 a share. During that move, shares of GIII have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GII within range of triggering a big breakout trade post-earnings. If you're bullish on GIII, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high at $84.95 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 226,675 shares. If that breakout triggers post-earnings, then GIII will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $100 to $110 a share. I would simply avoid GIII or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average of $80.54 a share with high volume. If we get that move, then GIII will set up to re-test or possibly take out its next major support levels at $76.43 to its 200-day moving average of $73.26 a share. Read More: 5 Rocket Stocks to Buy for a Short Trading Week Navistar International Another potential earnings short-squeeze trade idea is heavy machinery and vehicles player Navistar , which is set to release its numbers on Wednesday before the market open. Wall Street analysts, on average, expect Navistar to report revenue $2.96 billion on a loss of 66 cents per share. The current short interest as a percentage of the float for Navistar is extremely high at 29%. That means that out of the 34.79 million shares in the tradable float, 10.10 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of HAV could easily rip sharply higher post-earnings as the bears rush to cover some of their positions. From a technical perspective, NAV is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending over the last month, with shares moving higher from its low of $33.59 to its recent high of $39.26 a share. During that uptrend, shares of NAV have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of NAV within range of triggering a major breakout trade post-earnings above some key overhead resistance levels. If you're in the bull camp on NAV, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key overhead resistance levels at $39.26 to $39.45 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 684,080 shares. If that breakout hits post-earnings, then NAV will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $41.57 a share. Any high-volume move above that level will then give NAV a chance to make a run at $45 to $50 a share. I would simply avoid NAV or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below both its 50-day at $37 a share to its 200-day at $36.35 a share with high volume. If we get that move, then NAV will set up to re-test or possibly take out its next major support levels at $33.59 to $32 a share. Read More: Warren Buffett's Top 10 Dividend Stocks Ciena Another potential earnings short-squeeze candidate is communications networking equipment player Ciena , which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Ciena to report revenue of $600.81 million on earnings of 29 cents per share. The current short interest as a percentage of the float for Ciena is extremely high at 17.5%. That means that out of the 103.42 million shares in the tradable float, 18.16 million shares are sold short by the bears. If this company can deliver the earnings news the bulls are looking for, then shares of CIEN could easily rip sharply higher post-earnings as the bears move quickly to cover some of their positions. From a technical perspective, CIEN is currently trending above its 50-day moving average and just below its 200-day moving average, which is neutral trendwise. This stock recently formed a double bottom chart pattern at $18.54 to $18.64 a share. Following that bottom, shares of CIEN have started to uptrend with the stock moving back above its 50-day moving average. That move has now pushed shares of CIEN within range of trade triggering a near-term breakout post-earnings above some key overhead resistance levels. If you're bullish on CIEN, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance at $20.98 a share to its 200-day moving average at $21.65 a share and then above more key resistance levels at $22.50 to $23 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 3.07 million shares. If that breakout develops post-earnings, then CIEN will set up to re-test or possibly take out its next major overhead resistance levels at $24.21 to $24.80 a share, or even $27 to its 52-week high at $27.94 a share. I would avoid CIEN or look for short-biased trades if after earnings it fails to trigger that breakout and drops back below its 50-day moving average of $20.24 a share to more near-term support at $20 a share with high volume. If we get that move, then CIEN will set up to re-test or possibly take out its next major support levels at $18.64 to $18.54 a share. Any high-volume move below those levels will then give CIEN a chance to re-test or possibly take out its 52-week low of $18 a share. Read More: 10 Stocks George Soros Is Buying Vince Holding Another earnings short-squeeze prospect is diversified apparel player Vince Holding , which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect Vince Holding to report revenue of $83.92 million on earnings of 24 cents per share. The current short interest as a percentage of the float for Vince Holding is pretty high at 8.1%. That means that out of the 14.82 million shares in the tradable float, 1.21 million shares are sold short by the bears. This is a decent short interest on a stock with a very low tradable float. Any bullish earnings news post-earnings could easily set off a sharp short-covering rally for shares of VNCE post-earnings that forces the bears to cover some of their trades. From a technical perspective, VNCE is currently trending above its 50-day moving average, which is bullish. This stock has been uptrending over the last month, with shares moving higher from its low of $32.19 to its recent high of $38.10 a share. During that uptrend, shares of VNCE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of VNCE within range of triggering a big breakout trade post-earnings. If you're bullish on VNCE, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key overhead resistance levels at $38 a share to its all-time high at $38.10 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 312,569 shares. If that breakout materializes post-earnings, then VNCE will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $50 to $55 a share. I would simply avoid VNCE or look for short-biased trades if after earnings it fails to trigger that breakout and then takes out its 50-day moving average of $34.78 a share to more near-term support at $34 a share with high volume. If we get that move, then VNCE will set up to re-test or possibly take out its next major support level at $32.19 a share. Any high-volume move below that level will then give VNCE a chance to tag its next major support levels at $29 to $27 a share. Read More: 3 Stocks Spiking on Unusual Volume Hovnanian Enterprises My final earnings short-squeeze play is homebuilding player Hovnanian Enterprises , which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Hovnanian Enterprises to report revenue of $559.57 million on earnings of 9 cents per share. The current short interest as a percentage of the float for Hovnanian Enterprises is very high at 16.6%. That means that out of the 117.35 million shares in the tradable float, 19.56 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 5.9%, or by about 1.08 million shares. If the bears get caught pressing their bets into a bullish quarter, then shares of HOV could easily explode sharply higher post-earnings as the shorts rush to cover some of their positions. From a technical perspective, HOV is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been uptrending a bit over the last month, with shares moving higher from its low of $3.75 a share to its recent high of $4.40 a share. During that move, shares of HOV have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of HOV within range of triggering a near-term breakout trade post-earnings above some key overhead resistance levels. If you're in the bull camp on HOV, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some key near-term overhead resistance levels at $4.40 to $4.75 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 2.70 million shares. If that breakout develops post-earnings, then HOV will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $4.98 a share to $5.31 a share. Any high-volume move above $5.31 a share will then give HOV a chance to tag $6 a share. I would avoid HOV or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support levels at $4.13 to $4 a share with high volume. If we get that move, then HOV will set up to re-test or possibly take out its next major support level at its 52-week low of $3.75 a share. Read More: 7 Stocks Warren Buffett Is Selling in 2014 To see more potential earnings short squeeze plays, check out the Earnings Short-Squeeze Plays portfolio on Stockpickr. -- Written by Roberto Pedone in Delafield, Wis. RELATED LINKS: a >>3 Tech Stocks on Traders' Radars a >>5 Stocks With Big Insider Buying a >>Must-See Charts: 5 Big Trades for S&P 2,000 Follow Stockpickr on Twitter and become a fan on Facebook.

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text Why Boeing (BA) Stock Is Down Today
Tue, 02 Sep 2014 16:47 GMT

NEW YORK (TheStreet) -- Shares ofaBoeing were falling -1.6% to $124.83 on Tuesday after receiving downgrades from The Buckingham Research Group and RBC Capital. Buckingham Research downgraded Boeing to "underperform," the first such rating for the company since 2009, according to Reuters. The analyst firm set a price target of $101 for the airplane maker, saying that lower 777 production rates and higher deferred 787 costs will negatively impact the company's results. RBC Capital lowered its price target for Boeing to $134 from $145. Investor sentiment toward Boeing and competitor Airbus "is likely to remain muted, as there is concern over the visual headwind of declining orders, and increased cancellations, despite the record backlogs," RBC analyst Robert Stallard wrote. Must Read:a50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. ----------------- Separately, TheStreet Ratings team rates BOEING CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation: "We rate BOEING CO (BA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year. BOEING CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BOEING CO increased its bottom line by earning $5.97 versus $5.12 in the prior year. This year, the market expects an improvement in earnings ($8.20 versus $5.97). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 51.9% when compared to the same quarter one year prior, rising from $1,088.00 million to $1,653.00 million. Despite its growing revenue, the company underperformed as compared with the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 1.1%. Growth in the company's revenue appears to have helped boost the earnings per share. Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Aerospace & Defense industry and the overall market, BOEING CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500. You can view the full analysis from the report here: BA Ratings Report EXCLUSIVE OFFER:aSee inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners.aClick here to see the holdings for FREE.

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NEW YORK (TheStreet) -- Shares ofaMicrosofta fell 1.14% to $44.91 on Tuesday after the tech giant refused to comply with a U.S. judge's order to turn over customer emails held at a data center in Ireland. Loretta Preska, a U.S. District Court judge in Manhattan, has removed a hold on her previous order for Microsoft to turn the emails over to U.S. prosecutors who are working on a criminal investigation. Microsoft refused to do so, and Preska could findathe company in contempt of court. Microsoft could then appeal the ruling. "We will appeal promptly and continue to advocate that people's emails deserve strong privacy protection in the U.S. and around the world," said Microsoft general counsel Brad Smith in a statement. "The only issue that was certain this morning was that the District Court's decision would not represent the final step in this process." Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. China has also given Microsoft a 20-day deadline toaexplain alleged software compatibility and bundling issues as the tech company deals with an antitrust probe into its business practices in the Asian nation. Separately, TheStreet Ratings team rates MICROSOFT CORP as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: MSFT's revenue growth has slightly outpaced the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 15.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. MSFT's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MSFT has a quick ratio of 2.31, which demonstrates the ability of the company to cover short-term liquidity needs. Compared to its closing price of one year ago, MSFT's share price has jumped by 35.91%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MSFT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. Net operating cash flow has significantly increased by 61.17% to $9,514.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 41.51%. You can view the full analysis from the report here: MSFT Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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NEW YORK (TheStreet) -- Shares of Vodafone Groupa are down -0.44% to $34.19 on very heavy trading volume after it was reported that speculation is swirling over SoftBank's next big takeover target after the Japanese mobile carrier last month dropped a bid to acquire T-Mobile US . The possible target: Vodafone Group, the Nikkei reports. Some say SoftBank Chairman and CEO Masayoshi Son has a particular affinity for Vodafone, stemming from SoftBank's takeover of the British company's Japanese business in spring 2006. Son shuttled back and forth between Japan and the U.K. to quickly close the deal, which was valued at 1.75 trillion yen (about $15 billion then), the Nikkei said. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. "I wouldn't be surprised if our CEO acquired Vodafone, since we are no strangers to each other," one SoftBank executive told the Nikkei. The potential for a shakeout in the European communications industry seems to lend credence to the idea, according to the Nikkei.a When SoftBank and Vodafone struck their deal over the Japanese unit, the British company had a market value of $134 billion, larger than any other global communications enterprise. But Vodafone's European operations subsequently lost steam, eroding the market value by about 30%. Still, going after Vodafone would be ambitious to say the least. "The total acquisition price of Vodafone would be at least $100 billion," one analyst told the Nikkei. VOD data by YCharts a EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE

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NEW YORK (TheStreet) -- The euro/dollar downtrend continues. Over the last two months, the exchange rate of the EURUSD has falling significantly lower, and as the monthly chart below shows us, there are no signs this downtrend is coming to an end any time soon. This week, we are looking to trade in line with the dominant downtrend in this market by waiting for a price action sell signal on theadaily chart time frame or four-hour chart time frame, following a retrace back to resistance. Key support levels are seen on the monthly chart down near 1.2750 and further below near 1.2050, and we wouldn't be surprised to see prices fall into these levels later this year. Read More: Dollar General Offers Major Antitrust Concessions as It Lifts Bid for Family Dollar Australian dollar/dollar drops down from resistance. If the AUDUSD stays contained under near-term resistance up between 0.9400 - 0.9374 this week, we could see it fall lower, with the next key support not seen until down near 0.9200. Read More: Your Retirement Will Probably Start Earlier Than You Want The U.S. dollar/Canadian dollar forms a fakey buy signal from support. Last week, the USDCAD completed a 50% retrace of its last major move higher. It ended this retrace by forming a bullish fakey with pin bar buy signal. This fakey/pin bar combo signal is showing rejection of both the 50% level and support near 1.0820. Thus, if price remains buoyant this week, we could see it begin pushing higher from Friday's buy signal. Read More: Goldman Sachs' 50 Stocks That Matter Most to Hedge Funds Gold weakness remains. Gold retraced modestly higher last week, but overall we are still seeing a clear downtrend in place on the daily chart over the last month and a half. Last Friday, the price formed an inside bar setup, indicating that the recent retrace higher is stalling and losing momentum. If the price breaks down from Friday's inside bar this week, we could see the downtrend resume and lower prices to follow. Read more about Nial Fuller, or follow him on Google + , Twitter or Facebook. Copyright 2014 -- LearnToTradeTheMarket.com At the time of publication, the author held no positions in any of the stocks mentioned. Nial Fuller Follow @NialFuller // 0;if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); // ]]> This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.


LONDON (The Deal) -- Len Blavatnik's Access Industries Group announced an offer for the 67.5% of London sports rights company Perform Group that it does not already own, valuing the company's fully diluted equity at 701.6 million pounds ($1.2 billion). At 260 pence a share, the offer matches the price at which Perform listed on the London Stock Exchange in 2011 and represents a premium of 27.6% to Friday's closing price of 203.8 pence. But Access described the offer as final -- and received a cool reception from the target's board. Perform said it had confidence in its existing strategy and growth prospects, which it set out last week together with its first-half results. It urged shareholders to take no action. A spokesman for Perform declined to elaborate, beyond saying that the company would make a further announcement in due course. Access has owned a stake in Perform since its creation from the 2007 merger between its own web-and-mobile sports technology provider Premium TV, and the digital sports rights agency Inform. It retained a 45.2% stake at IPO, which was later diluted in a share placing used to fund the 40 million pound acquisition of live sports data provider Opta Sportsdata in July 2013. Perform's shares peaked at 589 pence last year, but crashed in December after it issued a profit warning. Access said that taking the company private would show its continued support for the company and belief in its future, while offering existing shareholders the option to exit at a premium. "Access Industries has been a supporter of Perform from the start and we continue to have confidence in Perform's management and in the company's future potential," said Access Industries CEO Lincoln Benet in a statement. Access said that it would finance the acquisition of the remaining shares - for up to 410.3 million pounds -- from existing cash resources. Perform, of Feltham, England, commercializes multimedia sports rights worldwide through content distribution, subscription, sales of advertising and sponsorship and the provision of technology and production services. Perform on Friday said first-half revenues were up 29% compared with the same period last year, at 118.8 million pounds, but Ebitda was virtually unchanged at 15.63 million pounds. But it said the hard work involved in cutting its cost base had been completed and the company was now on course to improve performance. "The group has had a positive first six months with strong growth in year-on-year revenues," it said. "Whilst profitability has been impacted by the legacy cost base, the heavy lifting underpinning the hroup's cost reduction programmes has been completed and the benefits are on track to materialise during H2." However, that confidence was not enough to prevent the shares sliding from 216 pence at the open on Friday to 203.8 pence at the close. By contrast, Perform was trading at 257.5 pence by early afternoon on Monday, 2.5 pence below Access Industry's offer, through its vehicle AI PG LLC. Access is advised by David Wheeler, Stuart Upcraft, Stuart Field and Joe Hannon of Credit Suisse Group. Perform's brokers are Morgan Stanley and UBS AG. Its legal advisers are Freshfields Bruckhaus Deringer LLP.


a This article appeared at 10:21 a.m. EDT on RealMoney Aug. 29. SAN DIEGO (RealMoney) -- Williams-Sonoma , with little in the way of short interest, stunned investors Wednesday with surprisingly bad guidance. Enter Goldman Sachs with a report Thursday defending (sort of) the company. Except the defense makes zero sense. The headline on the report says, "Bump in road painful off peak multiple, but story on track." Read More: 10 Stocks Carl Icahn Loves in 2014 The analyst, Matthew Fassler, then goes on to say that the second quarter was merely a "short-term detour from a trend that is likely to give way to a better second half." There's only one problem with that. He cut his earnings forecasts for the third quarter, the entire year and the next two years. But he increased his 12-month price forecast? Really? Indeed he did and I can speculate why he did -- but won't. For what it's worth, six weeks ago or so, doing my rounds with sources, I was chatting up a money manager on names he thought were poised to blow. "Williams-Sonoma," he said. Read More: Stock Market Today: Stocks Mixed as U.S. Manufacturing Expands I was busy on another project and didn't get around to it, so asked him today: "What's the next Williams-Sonoma?" He said, "Still much more to go here." At the time of publication, Greenberg had no positions in stocks mentioned but positions can change at any time. Follow @herbgreenberg. Subscribe to RealityCheck, Herb On TheStreet Blog TheStreet Ratings team rates WILLIAMS-SONOMA INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation: "We rate WILLIAMS-SONOMA INC (WSM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow." You can view the full analysis from the report here: WSM Ratings Report

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NEW YORK (TheStreet) -- Dish Network shares are up 1% to $65.45 on Tuesday after analysts at Goldman Sachs aadded the company to the firm's "conviction buy" list while setting a $78 price target on the company. "We believe DISH's spectrum is undervalued by 40%+ with multiple catalysts for unlocking this value," said analysts at the firm citing valuation of the company's spectrum as a reason for the firm's positive outlook. The satellite television service provider'saprice target represents a 19.1% upside from its current price. Must Read: 50 Stocks Hedge Funds Love STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. DISH data by YCharts EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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NEW YORK (The Deal) -- South Korea's Samsung Heavy Industriesawill absorb sister company Samsung Engineeringain an all-share transaction worth about 2.5 trillion won ($2.5 billion) that aims to create a single, fast-growing onshore and offshore oil and gas services business. Under the deal terms, Samsung Engineering shareholders will be invited to swap each share for 2.36 new shares in Samsung Heavy. The exchange ratio valued Samsung Engineering shares at W63,628 each, based on Samsung Heavy's share price of W26,927. That represented a slim discount to Samsung Engineering's Friday closing price of W63,900, though sharp rises in the price of both companies' shares pushed the deal to a premium following its announcement on Monday. "Samsung Heavy Industries will gain engineering, procurement, and project management capabilities...and establish a stable foundation for the growth of its offshore plant business," said Samsung Heavy. "Samsung Engineering, which has focused its business in onshore hydrocarbon plants, will be able to diversify into high value-added projects such as onshore LNG and offshore plants." The merger comes amid a wider reshuffling of Samsung assets driven by a desire to cut overlapping operations and as South Korea's government steps up its efforts to dismantle the conglomerates, known as chaebols, that dominate its economy. Analysts are also watching Samsung for signs that the business could be broken up by the family of Lee Kun Hee, the company's billionaire chairman, who was hospitalized in May following a heart attack. Cheil Industries,awhich houses Samsung's electronics and fashion assets and acts as the wider group's de facto holding company, is preparing for an initial public offering in 2015. That sale could raise cash to enable Lee's three children to split up the group. A combined Samsung Heavy and Samsung Engineering would have had sales of about W25 trillion last year. Management said it hopes that the combination will drive sales to about W40 trillion by 2020. The deal will be voted on at a meeting on Oct. 27 and is expected to complete by Dec. 1. Shares in Samsung Heavy closed on Monday at W28,950, up W1,700, or 6.2%. on their Friday close, equating to a market capitalization of W6.69 trillion. Samsung Engineering shares closed at W71,900, up W8,000, or 12.5%, leaving it with a market capitalization of W2.88 trillion.


NEW YORK (TheStreet) -- TheStreet'saJim Crameraasks how high the bidding will go foraFamily Dollara .aDollar Generala increased its bid to $80 a share in cash and also promised to close up to 1,500 stores. Cramer says this move is a rebuttal to Family Dollar's method of stopping the deal, which is to say there is too much overlap compared to Dollar Treea , which has very little overlap. Cramer calls the Dollar Tree deal the "bird in the hand" because heathinks the antitrust review on a Dollar General deal would be very tough. He believes the government would regard these companies as a particular class of stores, unlikeaWalmarta oraTargeta , that appeals to the lower middle class and must be protected. Must Watch:aDollar General Ups The Ante in Family Dollar Pursuit STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Cramer still thinks "this thingais in play" and would rather own Dollar Tree than Family Dollar because "you could go up either way." TheStreet Ratings team also rates Dollar Tree as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate DOLLAR TREE INC (DLTR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, notable return on equity, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow." You can view the full analysis from the report here: DLTR Ratings Report EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

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