Top Stocks

By David Sterman

There is nothing more frustrating than finding a seemingly attractive young company, only to discover that its shares have already risen 800% in the past seven months. Then again, seeing that stock subsequently lose half its value in a matter of weeks suggests that perhaps you didn't miss out on "the next Apple (AAPL)" after all.

It has been that kind of roller-coaster ride for investors in Uni-Pixel (UNXL), which is either widely admired or widely reviled, depending on whom you ask. The company, which has yet to generate revenue from operations, will eventually make its investors a lot of money or prove to be a spectacular bust, depending on how the next three to six months play out.  

This is a market that's buying the news, hopes and speculation that the Federal Reserve is not ready yet to make major changes in its interest-rate policy.

But if traders are wrong, watch out.

Stocks rose for a second day in a row Tuesday, and the Dow Jones industrials ($INDU) finished up 138 points to 15,318, its second day of gains of 100 points or more.  The close was about 91 points below its peak close of 15,409.39, set on May 28.

The Standard & Poor's 500 Index ($INX) and Nasdaq Composite Index ($COMPX) also moved higher in a broad rally. Crude oil closed above $98 a barrel for the first time since September. 

By Simone Foxman

 

Is it time to slow down high-frequency trading? A new study says yes (.pdf). Despite arguments it provides liquidity in markets, researchers from the University of Michigan argue that it harms the average investor.

 

Although the term "high-frequency trading" (HFT) is often used loosely to describe trading at high speeds by computers, in this case we mean something specific: high-volume arbitrage activity, which plays on small, temporary differences in price between, say, a security trading both on the New York Stock Exchange and DirectEdge.

 

By Zacks Equity Research

 

Midstream energy service provider, Enterprise Products Partners, L.P. (EPD), and Western Gas Partners, LP (WES) have teamed up to hold natural gas liquid (NGL) fractionation trains 7 and 8.

Currently, both trains are under construction at Enterprise’s complex in Mont Belvieu, Texas and are expected to commence commercial operations in the fourth quarter of 2013. Trains 7 and 8 are designed to fractionate around 170,000 barrels per day (bpd) of NGLs.

Enterprise holds the majority ownership interest of 75% in the joint venture (JV), while Western Gas retains the remaining 25% stake. The latest JV is also the third midstream energy infrastructure project in which Enterprise has partnered with Anadarko Petroleum Corporation (APC) and its affiliates.

 

By Louis Bedigian 

By Richard Moroney, Dow Theory Forecasts

In a market where virtually everything has risen, where should investors look for the next move? By splitting S&P 500 industries into defensive and cyclical camps, we found that cyclicals offer richer fields to plow for new investment ideas.

Below, we review four cyclical stocks that could be positioned for strong gains in the second half of 2013: BE Aerospace (BEAV), BlackRock (BLK), DirecTV (DTV), and Qualcomm (QCOM). Each are long-term "buys" on our recommended Focus List.

 

 

By Dana Blackenhorn

 

Increase efficiency, increase renewable energy production, increase production of oil and natural gas, and something has to get squeezed out, right?

 

That something is coal.

 

Over the last few years coal has been losing its U.S. power plant customers, and now export markets are weakening, creating what Michael Forbes of Marketintellegencer calls a "downward spiral."

 

BHP Billiton (BHP), the Australian company that is the only industry player to be opening new mines, is down 20% so far this year, and the company's website is now emphasizing work on oil and sustainability.

 

By Dhara Ranasinghe

 

U.S. hedge fund Third Point on Tuesday said it has lifted its stake in Sony (SNE) and urged the Japanese electronics giant to spin-off its entertainment business.

 

Sony appears to be regaining its competitive edge and as a sign of its increased confidence in the company, Third Point has raised its stake to 70 million shares valued at 136.5 billion yen ($1.4 billion), the hedge fund's CEO Daniel Loeb said in a letter that was seen by CNBC.

 

The billionaire investor reiterated his call to spin-off Sony's entertainment division and offer to sit on Sony's Board of Directors.

 

Information provided by Theflyonthewall.com 

By Richard Suttmeier

 

My suggested allocation to stocks continues to include at least 50% out of the market in cash equivalents. Part of the amounts invested in the stock market should be allocated to buy-rated stocks in the Dow Industrial Average ($INDU).

 

On May 22 when I wrote on TheStreet about allocating assets to "buy"-rated Dow stocks, there were 15 "buy"-rated names to choose from. Today, the ranks of the "buy"-rated companies has thinned to 10, which is a warning that the stock market could be vulnerable in the second half of the year.

 

By Louis Bedigian 

Information provided by Theflyonthewall.com

Tuesday's noteworthy upgrades include:

• Flir Systems (FLIR) upgraded to Strong Buy from Market Perform at Raymond James
• HSBC (HBC) upgraded to Buy from Neutral at Citigroup
• Royal Dutch Shell (RDS.A) upgraded to Focus List from Outperform at Howard Weil
• Statoil (STO) upgraded to Outperform from Sector Perform at Howard Weil

 

By Bret Kenwell

Have you ever tried to look at the investment world through a child's eyes?

What would our kids buy if they were in our shoes? Not what stocks children should buy, but what they would buy. You might be shocked at some of the quality choices that come about.

It's almost a given to begin with Walt Disney (DIS). The House of Mouse is a company almost every kid knows. While the first thing that comes to mind is Disneyland in California or Disney World in Florida, the network shows and animated movies sure do hit home for most kids.

 

By George Putnam, The Turnaround Letter

With the stock market continuing to surge, it has become more of a challenge to find stocks trading at attractive valuations. One group that recently caught our eye is the major integrated oil companies.

Most of the stocks in this group have underperformed the S&P 500 Index over the past year, many by a significant margin. These stocks have the added benefit of paying relatively high dividends. Although they may be market laggards at the moment, we like the long-term prospects for the big oil companies.

Demand for oil (and natural gas, which many of them produce in addition to oil) is likely to keep rising for the foreseeable future, particularly in the developing countries.