Thursday, July 31, 2014

Top 5 Penny Stocks To Buy For 2014

Last week, the real-money Inflation-Protected Income Growth portfolio lost a few hundred dollars, essentially giving back the gains of the prior week that had pushed its total returns past 10%. It was a case of "easy come, easy go," as once again, no transactions took place in the portfolio.

Still, it was an active week for many of the companies held by that portfolio, as we're well into the quarterly confessional cycle known as earnings season. Ultimately, earnings are what drive a company's ability to pay and increase its dividend. Those dividends are the key drivers of the iPIG portfolio's strategy of seeking an income stream that grows at least as fast as inflation, so it's important to watch the earnings that support them.

Which way did they go?
Perhaps the biggest disappointment of the week came from fast-food titan McDonald's (NYSE: MCD  ) , which announced flat earnings and negative same-store sales, while also warning on sales for April. The company blamed penny-pinching consumers and intense competition. Perhaps even more ominously, McDonald's CFO's comments could be interpreted to suggest that the company might be willing to enter a price war in order to gain share.

10 Best Safest Stocks To Watch Right Now: Cornerstone Progressive Return Fund(CFP)

Cornerstone Progressive Return Fund is a closed-ended equity fund of fund launched and managed by Cornerstone Advisors, Inc. The fund invests funds investing in the public equity markets of the United States. It invests in stocks of companies operating across diversified sectors. Cornerstone Progressive Return Fund was formed on April 26, 2007 and is domiciled in the United States.

Advisors' Opinion:
  • [By Dan Caplinger]

    But you can see in several places the consequences of the stampede toward high yield. Here are just a few:

    Closed-end funds Cornerstone Progressive (NYSEMKT: CFP  ) and Pimco High Income (NYSE: PHK  ) both make fixed payments back to fund shareholders on a monthly basis, and their distribution yields are truly extraordinary, at about 17% and 12%, respectively. Those dividends have enticed shareholders to pay $1.30 to $1.40 or more for each $1 of assets in the funds. Yet during most months, a substantial portion of those distribution payments has simply been a return of investor capital rather than true income from the funds' investments. A recent study discussed in The Wall Street Journal found that returns on a portfolio with a combined value and dividend-income strategy outperformed a strategy focused more exclusively on maximizing dividends by an average of 1.7 percentage points per year, a huge edge in long-run returns. In the dividend ETF arena, most funds tend to focus on maximizing yield. Although the popular Vanguard Dividend Appreciation (NYSEMKT: VIG  ) ETF bucks the trend by screening first for consistent dividend growth and only then looking at yield as a factor, many rival ETFs start with high-yielding stocks as their baseline and only then consider other desirable traits. Others focus solely on high-dividend niches of the market, such as iShares FTSE NAREIT Mortgage-Plus (NYSEMKT: REM  ) and its concentration on high-yield mortgage REITs.

    When dividend stocks get too popular, their prices get out of line with both their dividend income and the fundamentals of the businesses that underlie those stocks. In simpler terms, when dividend stocks become bad values, it's time to consider looking elsewhere for a margin of safety.

Top 5 Penny Stocks To Buy For 2014: Full House Resorts Inc.(FLL)

Full House Resorts, Inc., together with its subsidiaries, develops, manages, invests in, and owns gaming-related enterprises. The company holds interest in Gaming Entertainment (Delaware), LLC, a joint venture with Harrington Raceway, Inc., which has a management contract with Harrington Raceway and Casino that has approximately 1,800 slot machines and 40 table games, a 450-seat buffet, a dining restaurant, a 50-seat diner, and an entertainment lounge area located in Harrington, Delaware. It also owns and operates Stockman?s Casino, which has approximately 264 slot machines, 4 table games, and keno, as well as a bar, a dining restaurant, and a coffee shop situated in Fallon, Nevada. In addition, the company holds interests in Gaming Entertainment Michigan, LLC that has a joint venture with RAM Entertainment, LLC, which has a management agreement with the Nottawaseppi Huron Band of Potawatomi Indians for the development and management of the FireKeepers Casino in Battle Cre ek, Michigan. Full House Resorts, Inc. was founded in 1987 and is based in Las Vegas, Nevada.

Advisors' Opinion:
  • [By Monica Gerson]

    Full House Resorts (NASDAQ: FLL) is estimated to post a Q4 loss at $0.06 per share on revenue of $33.24 million.

    Urban Outfitters (NASDAQ: URBN) is expected to post its Q4 earnings at $0.55 per share on revenue of $927.86 million.

Top 5 Penny Stocks To Buy For 2014: MGP Ingredients Inc.(MGPI)

MGP Ingredients, Inc. produces ingredients and distillery products in the United States. It processes wheat flour and corn into various products through an integrated production process. The company operates in three business segments: Ingredient Solutions, Distillery Products, and Other. The Ingredient Solutions segment products consist of specialty proteins, specialty starches, vital wheat gluten, commodity wheat starch, and mill by-products. The Distillery Products segment offers food grade alcohol; fuel grade alcohol, commonly known as ethanol; and distiller?s feed and carbon dioxide, which are co-products of the company?s distillery operations. The Other segment products comprise resins, and plant-based polymers and composites. MGP Ingredients, Inc. sells its products directly or through distributors to the manufacturers and processors of finished goods. The company was founded in 1941 and is headquartered in Atchison, Kansas.

Advisors' Opinion:
  • [By John Udovich]

    Small cap ingredients stock Balchem Corporation (NASDAQ: BCPC) jumped 22.76% yesterday on news about an acquisition, meaning its worth taking a closer look at the stock along with potential peers like small cap MGP Ingredients Inc (NASDAQ: MGPI) and the PowerShares Dynamic Food & Beverage ETF (NYSEARCA: PBJ).

Top 5 Penny Stocks To Buy For 2014: Orchids Paper Products Company(TIS)

Orchids Paper Products Company manufactures private label tissue products for the consumer market in the United States. Its product line includes paper towels, bathroom tissue, and paper napkins. The company also offers its products under the Orchids, Velvet, Colortex, Ultra Valu, Dri-Mop, Big Mopper, Soft & Fluffy, Tackle, My-Size, and Care brand names. It serves value retailers (dollar stores), discount retailers, grocery stores, grocery wholesalers and cooperatives, and convenience stores. The company markets its products directly, as well as through independent brokers. Orchids Paper Products Company was founded in 1976 and is headquartered in Pryor, Oklahoma.

Advisors' Opinion:
  • [By David Goodboy]

    My next step was to locate stocks in this industry. One company stood out above the rest as a top performer with plenty of upside. That company is Orchids Paper Products Co. (NYSE: TIS).

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