Top Stocks

By Matt Koppenheffer

 

Am I a flip-flopper?

I had been seriously skeptical of Chinese small caps before the worst of the meltdown began. But then, as the short "hit" pieces flooded the Web and the group's stock prices got absolutely clobbered, the value investor in me started to get intrigued.

 

But now it's time to finally throw up my hands, pull out the ol' white flag, and simply say, "I give up!" And I can thank Longtop Financial (LFT) for bringing me to this conclusion.

 

Longtop's shares were halted last week, and earlier this week the company filed with the SEC that its accountant (Deloitte Touche Tohmatsu) is walking away and its CFO has offered his letter of resignation. That all sounds bad enough, but it gets much worse. Check out the reasons that Deloitte told Longtop to talk to the hand:

 

By Don Dion, TheStreet

 

The investing environment has been shaken by the bloody political protests in the Middle East and Northern Africa, Japan's natural disasters, the commodities shakeup and most recently, the resurgence of the European debt crisis.

 

Although this rocky situation from these headwinds may prove too much to many, I advise against fleeing the marketplace at this time.

 

Rather, by making adjustments, it is possible for battered investors to weather current economic storms and prepare for clearer skies ahead.

 

Range-bound?

 

There's a phrase we haven't heard lately. It does seem, for however fleeting a time, that the euro is range-bound vs. the dollar -- call it $140-$150 on the CurrencyShares Euro Trust (FXE). And oil seems to have settled in to the $100 range, give or take a couple of bucks, despite aggressive pushing by two major companies.

 

When we get all range-bound, we tend to focus on the fundamentals and the possibilities that things can "calm down." When we look at the "actuals" instead of being blinded by the volatility, what we see are some companies in more control of their destiny than others, and some companies losing control of their destiny while others seem to be regaining control.

 

Take apparel. Wednesday we were shocked that Ralph Lauren (RL) was scalded by commodity inflation. It was really ugly. Took me by surprise. But then Guess (GES) reported, and I figured they would blow it, but they instead delivered perfectly. Took me by surprise.

 

There's no question that the super-hot LinkedIn (LNKD) IPO last week changed the tech landscape. Companies that weren't planning to go public started to entertain the option. And some that were planning IPOs revised their timetables.

I'm not sure we can call it a bona fide bubble yet, but don't be surprised to hear much more about tech IPOs soon. Case in point: Zynga, a social-networking company whose business model is "almost completely dependent on Facebook," as Portfolio notes.

Zynga is best known for "Farmville," "Mafia Wars" and other games played by Facebook users.

Post continues after this video about whether a Zynga IPO makes sense: 

Updated at 6:20 p.m. ET.

 

Shares of Martha Stewart Living (MSO) rocketed as much as 36% to $5.10 today on news that the company has hired an advisory firm to help figure out its future.

 

The shares dropped back to $4.67 at the close, still a 23.9% gain.

The possible scenarios here range from an outright sale to the formation of a partnership to going completely private. In any case, investors seem to like the potential changes.

Another plus: Martha is returning to the board this year. She was banned from the board for five years in a settlement with securities regulators but can return in August. Stewart served five months in prison after a 2004 conviction for obstructing justice and lying to investigators about a stock sale.

 

By Alyce Lomax

 

Should consumers have to choose between "moral consumption" and the coolest technology? Timberland (TBL) CEO Jeffrey Swartz posed that question in a recent blog post aimed squarely at Apple (AAPL) and its devoted fans.

 

Swartz's blog is called Rantings of a Responsible CEO, and this particular post, highlighted by ZDNet, centered on responsibility in corporate supply chains. Swartz contends that companies in his industry have to be transparent regarding supply-chain issues, unlike tech companies. He points out that such openness from companies like Timberland, Nike (NKE) and Adidas has debunked "competitive secret" myths.

 

Swartz makes valid points in his criticism, discussing how Apple does seem to get away with pretty unpleasant business concerning the foreign suppliers it relies on.

 

 

By Don Dion, TheStreet

 

The Internet was thrust into the spotlight with LinkedIn (LNKD) recent trading debut. While exciting to watch, investing in this industry could prove tricky in the weeks ahead.

 

Despite the rampant investor interest, clearly much remains unknown about companies like LinedIn and Russia's Yandex (YNDX), which debuted Tuesday. Until the dust settles, it will be difficult to judge how they will perform. In the aftermath of LinkedIn's explosive action late last week, many analysts and commentators have begun to clamor over whether or not we are witnessing signs of a new dot-com bubble.

 

Given the swirling uncertainty, I caution against diving into any of these newly public companies at this time. This does not mean, however, that investors should shun this corner of the tech sector entirely.

 

On the contrary, ETFs with heavy focus on online companies may be well-positioned to benefit in the near term as interest in the Internet reaches a boiling point.

 

By Jeff Kleintop, TheStreet

 

Contrary to warnings on trains, billboards and the radio, the apocalypse did not take place Saturday, May 21. The events predicted for the purported Judgment Day did not come to pass. Nevertheless, early last week market participants acted as if the end was near:

1. Investors drove the yield on the 10-year Treasury down to 3.11%, threatening to break the 3% threshold for the first time since last summer, when fears of a return to recession gripped market participants.

 

2. Investor sentiment, measured by the American Association of Individual Investors, plunged to one of its weakest readings since the low of the financial crisis and recession in March 2009.

 

3. Individual investors continued to sell domestic stock funds, with outflows reported by the Investment Company Institute last week totaling more than $2 billion for the prior week. Stocks fell for a third straight week, although only slightly.

 

Is SodaStream (SODA) a fad or the real deal? Last week I had the CEO on "Mad Money," and I have to tell you that I think this is the real deal.

 

This billion-dollar company offers a solution to a lot of problems. One, the cost of soda. Two, the freshness of soda -- nothing like fizz fresh from the can, the way I used to like it when I had seltzer delivered. And three, the environmental problems of cans and bottles. As much as we would like to think that we are a recycling nation, we are not even close to being so, and I don't think we will get there anytime soon.

For all of that, you get an $80 machine, two cylinders of CO2 for $15 and a bunch of flavors ranging from $4 to $8 that make dozens of bottles of fresh soda.

But does it taste good? I am going head to head with Herb Greenberg, my old friend, former colleague and current colleague at CNBC, to address this lingering issue. To me, the stuff tastes great. To my kids, who are of the new age of total environmental enforcement, the taste is great, and even better, the cans and bottles are a thing of the past.

 

 

Dabbling in penny stocks is risky. Just ask Justin Bieber.

The floppy-haired singing sensation has agreed to act as a spokesman for DriveSafe software from Options Media Group Holdings (OPMG), the company announced. Bieber will endorse DriveSafe online and in person, and the company is planning a Bieber-focused product launch on June 6.

Options Media Group markets an app that blocks a car driver from texting, Web surfing and making outgoing calls while driving. "It is tragic that almost on a daily basis there are reports of deaths and severe injuries caused by drivers who are texting and driving," Bieber said in a press release.

Sounds OK, right? As it turns out, Bieber is associating himself with -- and becoming part owner of -- a company in financial trouble. As part of the deal, Bieber gets warrants to purchase 121 million shares of common stock at a penny per share, or a total of 16.4% of the company, which can be exercised over three years. Bieber also gets royalties on DriveSafe sales. 

By Don Dion, TheStreet

 

After weeks of residing in the background, Europe's debt crisis has once again taken center stage. As the futures of vulnerable European nations like Greece, Italy and Ireland are being called into question, investor ire has risen and concerns have begun to mount regarding the long-term stability of the current global economic recovery.

 

The international investing realm has become tricky to navigate as trials such as the one currently facing Europe cast a shadow over nations outside the U.S. borders. With an open eye, however, it is possible for ETF investors to target foreign nations that could hold promise in the weeks and months ahead.

 

Canada is one example of a developed market nation that could prove stable down the road. Due to its heavy exposure to oil sands and other natural resources, I have often turned to our northern neighbor as an attractive international destination for commodities-hungry investors.

 

Beyond its heavy exposure to commodities, however, Canada boasts other strengths as well.

 

By Debra Borchardt, TheStreet

 

It's a busy week for initial public offerings with eight companies scheduled to go public, and it looks like Tuesday's headliner, Yandex (YNDX) may be the star of the bunch.

 

Known as the RussianGoogle (GOOG), Yandex reportedly was able to price its stock sale at $25 per share, above a projected range of $20-$22 per share, allowing the Internet search company to raise $1.3 billion late Monday, according to The New York Times.

 

Yandex is often compared toBaidu.com (BIDU), and that would likely be fine for investors who are buying Yandex stock on its first day. Baidu shares, which are up more than 40% in 2011, went public in 2005 at $27 per share and closed Monday at $129.47.