May 20, 2015
FROM THE EDITOR
Nancy Zambell

by Nancy Zambell
Editor of Dividend Digest and Investment Digest
from Investment Digest, Issue 769

The markets seem to be emerging from their trading ranges, with the Dow Jones Industrial Average gaining some 300 points in the past few days. As you’ll see in our Market Views section, that statistic has found support with our contributors, although as our Advisor Sentiment Barometer indicates, most pros have turned a bit more bearish since last month.

The Federal Reserve is moving slowly toward rate increases, but the momentum behind the idea seems to have declined somewhat, most likely due to the continuing steady, but tepid economic recovery.

We are making progress, though. Earnings growth for the S&P 500 companies turned positive, rising 0.1% last week—much better than the prior week’s 0.4% decline.

Unemployment continues to drop and housing starts and building permits both rose more than expected, which is good news for our Spotlight Stock, a company bringing cloud technology to the construction industry. That technology is sorely needed, as you’ll read in my Feature Article, which shares some alarming statistics regarding cost overruns and inefficiencies in the global construction trade.

With more than a trillion dollars of cash on the books of companies throughout America, our contributors continue to see an increasing demand for technology. Consequently, they offer a variety of stocks in this issue, including software and hardware ideas for governments, communications, ATMs, measurement, Internet and investment banking.

Our Growth-Retail section includes household name companies in coffee, travel and beauty businesses. We feature several biotech and medical equipment stocks this month, and Growth & Value ideas range from tea and skincare to media to infrastructure.

You’ll find some interesting selections from the communications, household products and biotech sectors in our Low-Priced Stocks, and our International offerings include a security company and an automobile manufacturer.

Our Financials recommendations include a short-term loan business, and a worldwide leader in investment banking.

Lastly, our contributors have a lot to say about Funds this month, offering ideas in the international, small-cap, commodity and special situations arenas.

EDITOR'S PICK

May 22, 2015
Keysight Technologies (KEYS)
Porter Stansberry

Porter Stansberry

from Porter Stansberry’s Investment Advisory

As of November last year, Agilent’s (A) Electronic Measurement business unit is now traded as a brand-new public company—Keysight Technologies (KEYS).

Keysight’s three main business segments are Aerospace/Defense; Communications; and Industrial, Computer, Semiconductor. Keysight currently invests more than 12% of its revenues in R&D, which has led to decades of “firsts” and “fastests,” including the world’s first iridium phosphide integrated circuit for oscilloscopes and the world’s first single-slot PXI two-channel modular Vector Network Analyzer. Read More »


FEATURED INCOME INVESTMENT

May 15, 2015
Public Storage (PSA)
Ross L. Smotrich

Ross L. Smotrich

from Barclays Capital Equity Research

Public Storage Inc.’s (PSA) 1Q15 core Funds from Operations (FFO)/share of $1.94 was in-line with our estimate and consensus. Reported FFO, which includes $0.03/share of preferred redemption charges, was $1.91 (+9.5% YoY). Storage fundamentals remain healthy, and we think demand is sufficient to absorb rising construction levels.

Same store net operating income (SSNOI) growth of 8.4% in 1Q15 was an acceleration from 2014’s 6.7% growth. Looking ahead, we now expect SSNOI growth to remain a solid 6.1% in 2015 (5.4% previously); albeit a slowdown from 2014. We think sustaining SSNOI growth of 6%-8% will be difficult given near full occupancy (~95% during peak mid-year quarters) and more difficult expense comps. Read More »


INCOME INSIGHTS

Sideways, but Accumulation Rises
John Gray

John Gray

by John Gray for Investors Intelligence
Dividend Digest 272, May 13, 2015

Last week saw buying climaxes at 41 with selling climaxes at 46. Fairly subdued levels as the range-bound action on the indices continues.

Buying climaxes were greatest among Health Care (4), Banks (3), Media (3), Biomedics (2), Buildings (2), Retailing (2), Semiconductors (2), Leisure (2) and Food Beverages (2). Many of these were just pullbacks to trend so they carry little significance for now.

Selling climaxes were highest among Real Estate (7), Electronics (4), Internet (3), Telecom (3), Europe (3), Business Production Services (3), Biomedics (2), Retailing (2) and Transport Non-Air (2). Read More »