April 16, 2014
FROM THE EDITOR
Nancy Zambell

by Nancy Zambell
Editor of Dick Davis Dividend Digest and Dick Davis Investment Digest

from Investment Digest Issue 756

In the past month, we’ve seen significant volatility in the markets, with technology stocks especially targeted during the downswings. But in the last couple of days, the markets have shown renewed strength, on better-than-expected earnings from the early reporting companies. Prices for tech stocks improved after both Intel and Yahoo posted earnings that exceeded estimates, as well as the notice that Twitter was buying data analytics company Gnip.

However, our market view contributors this month remain cautious, and the overall investor sentiment turned slightly more bearish this month.

Our Spotlight Stock is a French company that is using data analysis to create a growing niche for itself in the digital advertising industry. Data collection, mining and analysis is a huge and growing marketplace, in which new companies are formed daily and those with innovative, cutting-edge technologies are being increasingly sought after and acquired by businesses with deep pockets, as we saw with Twitter’s latest acquisition.

With that in mind, I thought it might be interesting to offer you a brief review and summary of the data analysis industry. The potential is enormous, and I know that we will be seeing more exciting recommendations from our contributors in this arena. The industry is fascinating and is growing exponentially. And there are scores of companies that will benefit from the intense interest, investment and technological changes that are coming.

This month, our contributors are taking advantage of the pullback in tech company prices to offer recommendations in several businesses, including credit scoring, semiconductors, visual computing and software. And while biotech stocks have also suffered recently, there are enormous strides being made in the industry, including a company in the protein therapeutics sector.

Moving on to low-priced stocks, we include businesses that specialize in biopharma, education and medical robotics. And we have two emerging market companies that offer some unique geographical diversification.

Our growth and income pick is a household name, and our value offerings include a nutrition retailer, aluminum smelter and an online dating service.

If you are looking for growth, you’ll find a diverse collection of recommendations, including a Cloud computing company, a 163-year-old company that has reinvented itself many times over, a solar business, a temporary staffing agency, a spirits maker and a mobile security business.

We have one energy contribution this month, and a couple of companies who are improving shareholder value via share buybacks.

With all of the market volatility, metals—generally considered to be market and inflation hedges—are gaining some interest, and our contributors offer two recommendations in that market.

Our funds and ETFs range from small- and mid-cap to contra and gold. And we round out the issue with several updates on previous recommendations.

EDITOR'S PICK

April 17, 2014
Century Aluminum Company (CENX)
Roger S. Conrad

Roger S. Conrad

Rising demand for aluminum from the U.S. automobile industry bodes well for Century Aluminum Company (CENX). Century Aluminum specializes in smelting and owns six facilities in the U.S. and Iceland.

Between late 2003 and mid-2008, China’s insatiable demand for the metal fueled an extended rally in aluminum prices. However, aluminum prices have weakened significantly since this inflection point, hitting their lowest level since the 2008-09 financial crises in January 2014.

Century Aluminum’s management makes a compelling case that, outside of China, the world faces a deficit of aluminum production. Read More »


FEATURED INCOME INVESTMENT

April 11, 2014
Sanofi (SNY)
John Buckingham

John Buckingham

This company develops products for the Pharmaceuticals, Human Vaccines and Animal Health industries. The company’s dividend yield is 3.8%, paid yearly.

Based in France, Sanofi (SNY) is a global integrated healthcare company focused on seven growth platforms: Diabetes Solutions, Vaccines, Genzyme, Emerging Markets, Consumer Healthcare, Animal Health and Other Innovative products.

We like that the company has a relatively robust and promising pipeline of new pharmaceuticals, including several that address diseases that have no current treatments. We are attracted to SNY’s industry leading global insulin position, via its mega blockbuster Lantus. We believe the opportunity in this space is substantial as the global population of diagnosed diabetics is likely to show robust growth as obesity rates continue to climb. Read More »


INCOME INSIGHTS

Dr. John Faessel

Dr. John Faessel

from On The Market, April 7, 2014

Weekly end of trend candles are flashing danger, and the Nasdaq now has a broken chart. We are basically where we were on New Year’s Day in most indexes.

On Friday—after ticking a new all-time high—the S&P 500 dropped 1.3% and the Dow Transports were down 1.46%. The Nasdaq peeled off 2.6%. The Investor Business Daily 50 “high flyers’ took a huge 3.6% wham. Volume rose sharply across the board. Many of the top 50 performing stocks are flashing warning signals with the market’s renewed sell-off.
Read More »