March 18, 2015
FROM THE EDITOR
Nancy Zambell

by Nancy Zambell
Editor of Dividend Digest and Investment Digest
from Investment Digest, Issue 767

As I write this, the market futures are down today in anticipation of the Fed wrapping up its meeting, and potentially making an announcement that will portend rising rates by mid-year. It’s not as if a rate increase is unexpected, as market gurus have discussed almost nothing else for the last few months. However, the uncertainty is making both investors and advisors more cautious, as you’ll see in our Market Views as well as the change in our Advisor Sentiment Barometer.

Yet, the economy continues improving. Unemployment claims are down. And in the fourth quarter of 2014, 75% of the companies in the S&P 500 reported earnings above the mean estimate and 58% posted sales above the mean estimate. Analysts do expect the earnings growth numbers to soften somewhat this quarter, but the good news is that the S&P’s forward P/E estimate is 16.6, indicating a market that continues to have room to grow.

As for rising rates, while an announcement will probably prompt a quick—but temporary—decline in the markets, in general, the impact will be short-lived, barring any economic or global catastrophes. Long-term, of course, if rates rise precipitously, the scenario will change.

But in the meantime, the economy is recovering very nicely, and as long as that continues, that growth should boost stock market returns. And as I always say, with volatility comes opportunity, and any temporary down days in the market are occasions to buy at a discount—which our contributors love!

This month, we lead off with our Spotlight Stock, a leader in wireless charging technology. I explore this rapidly growing technology a bit further in my Feature.

Additionally, our contributors discovered five more tech companies with huge growth potential in infrastructure, semiconductors, cloud, content management and business processing. With lower energy prices still weighing on that market, we offer two energy-related stocks with fast growth trajectories.

In the medical sector, you’ll find a variety of biotechs, as well as two larger device and pharmaceutical businesses. And our Growth and Growth & Value sections feature a wide range of investments, including residential and commercial services, entertainment, restaurant, retail, banking and automotive companies.

Our Funds & ETFs this month are comprised of a couple of broad indexes, as well as a number of more specialized sector offerings.

EDITOR'S PICK

March 19, 2015
Hibbett Sports (HIBB)
John Reese

John Reese

from Validea Hot List Newsletter

Hibbett Sports, Inc. (HIBB) operates sporting goods stores in small and mid-sized markets predominantly in the South, Southwest, Mid-Atlantic and the Midwest. The company operates 927 stores consisting of 910 Hibbett Sports stores and 17 smaller-format Sports.

Hibbett’s merchandise assortment emphasizes team sports complemented by localized apparel, footwear and accessories designed to appeal to a range of customers within each individual market. The company’s primary retail format is Hibbett Sports, an approximately 5,000 square foot store located primarily in strip centers, which are usually near a Wal-Mart store. Read More »


FEATURED INCOME INVESTMENT

March 13, 2015
DuPont Fabros Technology (DFT)
Ross L. Smotrich

Ross L. Smotrich

From Barclay’s Capital Equity Research

DuPont Fabros Technology, Inc.’s (DFT) 4Q14 results and 2015 outlook suggest that data center fundamentals remain solid. That said, 2015 FFO/share guidance of ($2.27-$2.47) was below our estimate ($2.61) and consensus ($2.57). Light guidance was primarily driven by the announcement that a large tenant, Net Data Centers, has ceased making rent payments and DFT’s assumption that ACC2 (one of DuPont’s buildings) is not released in 2015 after Yahoo’s lease expiration in September. The stock, which significantly outperformed the Msciusreit Index (RMZ) in 2014, sold off materially on the 2015 guidance (-10.8% versus -1.8% for the RMZ since 2/4/2015). Read More »


INCOME INSIGHTS

Sideways May Be the Norm
Clif Droke

Clif Droke

by Cliff Droke from Momentum Strategies Report
Dividend Digest 270, March 11, 2015

Trading volume was relatively light on the NYSE with 750 million shares changing hands. The Advance-Decline (A-D) line was positive but the number of stocks making new 52-week lows was unacceptably high at 85 (versus only 53 new highs). Since there were far more than 40 new lows the conclusion is that internal selling pressure hasn’t quite yet abated. Therefore traders should continue to approach this market cautiously and hold off on making any new commitments.

The short-term directional components of our Hi-Lo Momentum (HILMO) indicator have been reflecting the internal weakness in the past few days. Here’s what the components look like as of Monday: the bottom line is the directional indicator, the middle line is the momentum bias and the top line is the internal trend indicator. Read More »