After rising 155 points and then closing the day down 80 points yesterday, the Dow Jones Industrial Average (DJINDICES: ^DJI ) has reversed its course today, falling 125 points this morning before recovering nearly all of the day's losses. As of 12:5 p.m. EDT the index is down a negligible two points. The other major U.S. indexes are more firmly in the red: The S&P 500 is down 0.3%, and the�Nasdaq is lower by 0.13%.
This morning investors sold off stocks after China's industrial purchasing was reported to be weak and the Japanese market lost 7% of its value. But a positive housing report and another decline in unemployment claims here at home have the markets turning around. Initial jobless claims dropped by 23,000 last week to a seasonally adjusted 340,000, where economists were expecting 345,000 claims.
Despite the encouraging housing reports released yesterday and this morning, shares of Home Depot (NYSE: HD ) are down 1% today. Yesterday it was reported that existing-home sales rose by 0.6%�in April and that the average time on the market fell, while prices increased. Today, the Department of Commerce reported that the number of contracts signed to purchase new single-family homes rose by 2.3% in April to a seasonally adjusted rate of 454,000, whereas economists were only expecting 425,000. But these are backward-looking indicators, and investors may be focusing on the future and how the Federal Reserve may tighten interest rates sooner than many expect, which would surely hurt the housing market and Home Depot.
Top 10 Japanese Stocks To Buy Right Now: Enersys (ENS)
EnerSys manufactures, markets, and distributes industrial batteries in the Americas, Europe, the Middle East, Africa, and Asia. It offers reserve power products that are used for backup power for the continuous operation of critical applications in telecommunications systems, uninterruptible power systems applications for computer and computer-controlled systems, and in other specialty power applications, including security systems; starting, lighting, and ignition applications; switchgear and electrical control systems used in electric utilities and energy pipelines; and commercial aircraft, satellites, military aircraft, submarines, ships, and tactical vehicles. The company also offers motive power products that are used to provide power for manufacturing, warehousing, and other material handling equipment, including electric industrial forklift trucks, mining equipment, and diesel locomotive starting and other rail equipment. In addition, it offers industrial battery re lated products, such as chargers, power equipment, and battery accessories, as well as provides related after-market and customer-support services. EnerSys markets and sells its reserve power batteries principally under the ABSL, ABSL Power, ABSL Space, ArmaSafePlus, Cyclon, DataSafe, Genesis, Hawker, Huada, Odyssey, Oerlikon Battery, PowerSafe, and SuperSafe brand names; and motive power batteries primarily under the Douglas Battery, Express, Fiamm Motive Power, General Battery, Hawker, Huada, and Ironclad brand names through a network of distributors, independent representatives, and its internal sales force. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001 to reflect its focus on the energy systems business. EnerSys was founded in 1999 and is headquartered in Reading, Pennsylvania.
Advisors' Opinion:- [By Michael Flannelly]
Early on Wednesday, industrial battery manufacturer EnerSys (ENS) entered into an agreement to acquire Purcell Systems for $115 million.
EnerSys expects the transaction to be accretive to its earnings by 15 to 20 cents per share in the first year. The company will finance the purchase of the Spokane, Washington-based company with existing cash and credit facilities.
Purcell Systems is a manufacturer of “thermally managed electronic equipment and battery cabinet enclosures for customers globally in telecommunication, broadband, utility, rail and military applications.”
EnerSys shares were inactive during pre-market trading on Wednesday. The stock is up 48.1% year-to-date.
- [By Dan Caplinger]
On Tuesday, EnerSys (NYSE: ENS ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.
- [By Rich Duprey]
Stored energy solution specialist�EnerSys� (NYSE: ENS ) �announced yesterday�it would be initiating its first quarterly dividend payment of $0.125 per share, payable on June 28 to the holders of record at the close of business on June 14.��
Top 10 Japanese Stocks To Buy Right Now: TOR Minerals International Inc(TORM)
TOR Minerals International, Inc., a specialty chemical company, engages in the manufacture and marketing of mineral products. Its mineral products are used as pigments, pigment extenders, functional fillers, and flame retardants for the manufacture of paints, coatings, plastics, catalysts, and solid surface applications. The company?s principal product includes HITOX, a light buff-colored titanium dioxide pigment used in paints, coatings, plastics, paper, and various other types of products. It also offers ALUPREM (premium alumina) products that are used for color critical applications as fillers and flame retardants; BARYPREM, which provides whiteness for color critical applications; TIOPREM, a series of heat stable colored TiO2 hybrid pigments used in various applications, such as engineered plastics, laminates, window profiles, plastic lumber, roofing granules, and ceramic coatings; and SYNTHETIC RUTILE used as a feed stock for white TiO2 and as a component in welding rod flux. In addition, the company provides BARTEX, an inert extender pigment, which offers weight and body to products comprising powder coatings used in automotive, appliance, and office furniture finishes; rubber products, such as carpet and curtain backings; and plastics, including billiard balls and poker chips; and HALTEX/OPTILOAD used in technical applications, including thermoset composites, sheet molding compounds/bulk molding compounds, thermoplastic profiles, electrical wire and cable insulation, mining conveyor belts, specialty coatings, and adhesives and sealants. TOR Minerals International sells its products through a network of direct sales representatives and independent stocking distributors in the United States, as well as through distributors and agents internationally. The company was founded in 1973 and is headquartered in Corpus Christi, Texas.
Advisors' Opinion:- [By Lisa Levin]
TOR Minerals International (NASDAQ: TORM) shares touched a new 52-week low of $9.76. TOR Minerals shares have dropped 9.95% over the past 52 weeks, while the S&P 500 index has gained 27.45% in the same period.
Top 5 High Dividend Companies To Watch For 2015: International Flavors & Fragrances Inc (IFF)
International Flavors & Fragrances Inc. (IFF), incorporated on December 6, 1909, creates, manufactures and supplies flavors and fragrances for the food, beverage, personal care and household products industries. The Company operates in two business segments: Flavors and Fragrances. Its Flavors business includes four categories of products: Savory, Beverages, Sweet, pharmaceutical and oral care (Sweet), and Dairy. Its Fragrances business consists of Fragrance Compounds and Fragrance Ingredients. The Company has 29 manufacturing sites around the world that support more than 36,000 products. Its manufacturing facilities are located in the United States, the Netherlands, Spain, Great Britain, Argentina, Brazil, Mexico, Australia, China, India, Indonesia, Japan and Singapore. In January 2014, International Flavors & Fragrances Inc. completed the acquisition of Aromor Flavors and Fragrances Ltd.
Flavors
The Company�� Flavors business is regional in nature, with different formulas that reflect local taste and ingredients. It produces flavors, which are used in soups, sauces, condiments, prepared meals, meat and poultry, and potato chips and other savory snacks. The Company creates flavors for juice drinks, carbonated beverages, flavored waters and spirits. The Company creates flavor concepts and heat-stable flavors for bakery products, as well as candy, chewing gum and cereal. For pharmaceutical and oral care products, it produces flavors for products, such as toothpaste and mouthwash and to create flavors that work while masking the active ingredients. The Company offers a range of value-added compounded flavors for all dairy applications, including yogurt, ice cream, cheese, cream and butter flavor. The Company also offers a range of vanilla extracts and a variety of flavor solutions that build on its understanding of vanilla. It is also developing flavor profiles in its CulinEssence program to bring culinary flavors to its customers.
Fragrances
The ! Company within its Beauty Care product line provides its customers products in the hair care, toiletries and skincare categories. The Company has three subcategories of products, in which its fragrances are included Fabric Care, including laundry detergents, fabric softeners and specialty laundry products; Personal Wash, including bar soap and shower gel, and Home Care, including household cleaners, dishwashing detergents and air fresheners. It manufactures fragrance ingredients for internal use by its perfumers in its Fragrances business and for external use by its customers and other third parties, including its competitors. The Company manufactures its ingredients through its global network of production facilities.
The Company competes with Givaudan, Firmenich and Symrise.
Advisors' Opinion:- [By Seth Jayson]
When judging a company's prospects, how quickly it turns cash outflows into cash inflows can be just as important as how much profit it's booking in the accounting fantasy world we call "earnings." This is one of the first metrics I check when I'm hunting for the market's best stocks. Today, we'll see how it applies to International Flavors & Fragrances (NYSE: IFF ) .
Top 10 Japanese Stocks To Buy Right Now: Timios National Corp (HOMS)
Timios National Corporation, formerly Homeland Security Capital Corporation, incorporated on August 12, 1997, provides radiological, nuclear, environmental, disaster relief and electronic security solutions to government and commercial customers. The Company is engaged in the strategic acquisition, operation, development and consolidation of companies operating in the chemical, biological, radiological, nuclear and explosive, (CBRNE), incident response and security marketplaces within the homeland security industry. It is building consolidated enterprises (platform companies) through the acquisition and integration of businesses in the homeland security industry, particularly businesses focused on CBRNE incident response. In August 2011, the Company sold its Nexus Technologies Group. In October 2011, the Company sold its Safety and Ecology Holding Corporation subsidiary to Perma-Fix Environmental Services, Inc. In May 2012, the Company announced the acquisition by its subsidiary Timios, Inc. of Glenn County Title Company. In June 2013, Timios National Corp announced that it has completed the purchase of Glenn County Title Company (GCTC). In September 2013, Timios National Corp announced that it had executed a purchase agreement for the assets of Adobe Title, LLC.
The Company offers a range of management and operational services to each of its subsidiaries through a team of dedicated professionals. Its subsidiaries compensate its holding company for such services. Its core services include environmental remediation and restoration, regulatory compliance, facilities management, facility deactivation, decommissioning and demolition, emergency response, design and construction services and security integration to the United States government agencies, such as the Department of Energy (DOE), the Department of Defense (DoD), the Environmental Protection Agency (EPA), the Federal Emergency Management Agency (FEMA), the United states Army Corps of Engineers and the National Aeronautics and Space ! Administration (NASA). It conducts its operations through Safety & Ecology Holdings Corporation (Safety), its wholly owned subsidiary; Nexus Technologies Group, Inc. (Nexus), its 93% owned subsidiary, and Polimatrix, Inc. (PMX), its joint venture. Safety is an international provider of environmental, nuclear and radiological infrastructure remediation, disaster relief solutions and advanced construction services. Nexus designs, develops and installs integrated security systems for government and commercial clients. PMX markets, sells and distributes radiological detection equipment.
Safety & Ecology Holdings Corporation
Safety is a provider of global environmental, hazardous and radiological infrastructure remediation, upgrades and nuclear services in the United States and the United Kingdom. Safety�� main business areas and service offerings include decommissioning and remediation environmental and remedial consultancy services; environmental and consultancy services; nuclear energy design, build, refurbishment and operational support services, and instrumentation and measurement technologies. Safety offers a range of services that include characterization, decontamination, decommissioning of facilities, soil and groundwater remediation, infrastructure reduction and demolition, site preparation, excavation, and remedial system construction; underground and overhead utility installation; electrical and mechanical installation; security fencing and device installation and upgrades; building renovation; piping; roadways, parking lots, and drainage system construction/repair, and landfill remediation and capping.
Safety engages in facility deactivation, demolition and closure solutions, including project investigation; radiological pre-engineering; demolition planning; removing above ground structures and structural components; storing, testing, certifying, processing and shipping nuclear waste, and abatement of hazardous materials. Safety focuses its service offe! ring on t! he application and integration of health physics, industrial hygiene, hazardous material consultancy and safety and health. In addition, Safety couples its technology with its instrumentation offering, on-site radiological laboratory capabilities and mobile radiological materials license to provide radiological services and consultation. Safety provides integrated services to the nuclear energy industry. Safety provides specialized services to a customer base, including government agencies, commercial customers and major engineering and construction companies around the world that are focused in the nuclear new plant deployment initiative, facility operation, decommissioning and refurbishment. The elements of Safety�� technology offering are instrumentation services and instrumentation technology, both of which are targeted to field investigations, characterizations of contaminants and clean-up and material management and disposal solutions.
The Company competes with Stoller, Cabrera, Portage, LATA Northwind, Demco, Eagle, Pro2Serv, PMTech, Navarro, Energy Solutions, the Washington Group, Tetra Tech, Shaw Environmental and C2HM Hill.
Nexus Technologies Group, Inc.
Nexus is a mid-Atlantic security integrator for the corporate and governmental security markets that specializes in the engineering and installation of custom designed integrated electronic security solutions, including access control, alarm, closed circuit television (CCTV), video, communication, perimeter protection and bomb and metal detection security systems. Nexus provides solutions to protect people, property and assets. As a systems integrator, Nexus designs, customizes, installs, integrates and maintains closed CCTV, access control, video and communication systems for its customers. Nexus has undertaken projects in a range of markets, including financial services, corporate and commercial, healthcare, government, nuclear utility services, public transportation, airports, industrial complexes,! museums,! prisons, higher education and data centers. As a provider of custom engineered integrated security solutions, including access control, alarm/intrusion, CCTV, communication, perimeter protection and bomb and metal detection security systems, Nexus is aligned with original equipment manufacturers (OEMs). Nexus has focused on five sectors in which it intends to expand, both vertically and horizontally. These sectors are Financial Institutions, Infrastructure Security, Government Facilities, Education Facilities and Corporate Markets.
Financial Institutions include banks, brokerage facilities, trading facilities and foreign currency exchange centers. Infrastructure Security include nuclear power generating facilities, water processing facilities, electricity generating facilities, power transfer stations and transportation centers, which include highway, bridge, tunnel, airport, rail and port security. Government Facilities include federal, state and local government buildings and offices, domestic and foreign embassies, military installations and police and fire department operations centers. Education Facilities include grammar, high school and college buildings, dorms and campuses, satellite learning centers and daycare centers. Corporate Markets include office buildings and grounds, parking lots, garages, retail locations, warehouses and apartment and condominium complexes.
The Company competes with Henry Brothers Electronics, Inc., Diebold, Inc. and ADT.
POLIMATRIX, INC.
PMX is a total solutions provider delivering radiation and nuclear protection and detection services through several engineered portable and stationary devices. PMX�� business plan is the development and marketing of radiological detection products and services. PMX has developed a range of domestic and international marketing initiative in Washington, DC, Virginia and Illinois. These states have used the PMX detection devices for a range of detection, prevention and first respon! der activ! ities. PMX�� product line of portable detection devices are designed to detect potential threats and can be positioned along transportation routes or carried by nuclear power generating facility security personnel. It operates PMX with the assistance of Safety�� personal.
The Company competes with Thermo Scientific and Canberra.
Advisors' Opinion:- [By Peter Graham]
Small cap stocks Timios National Corp (OTCMKTS: HOMS) and Lattice Inc (OTCMKTS: LTTC) surged 54.29% and 20.83%, respectively, while Unique Pizza & Subs Corp (OTCMKTS: UPZS) sank 27.27% last Friday. But today is a new trading week with the last two trading days for the year. So what will these three small caps do today, tomorrow and after New Years�� Here is a closer look:
Top 10 Japanese Stocks To Buy Right Now: Groupe Steria SCA (RIA)
Groupe Steria SCA is a France-based holding company engaged in the provision of end-to-end information technology (IT) services. The Company�� business is divided into four segments: Systems Integration, offering design and development of system; Application Management, providing maintenance and supervision of the stages in the life cycle of software applications; Management of IT Infrastructure, providing technical and business assistance, supervision of systems and network infrastructures, administration and operation of systems and network infrastructures, and hosting infrastructures in data centers; and Business Process Outsourcing (BPO), providing taking over the operation of part or all of business function on behalf of the customer. The Company is operational mainly in the United Kingdom, France, Germany and other European countries. The Company has subsidiaries in France, Morocco, the United Kingdom, India, Germany, Austria and Poland, among others. Advisors' Opinion:- [By victorselva]
The Charles Schwab Corporation (SCHW) is a savings and loan holding company. The company is engaged, through its subsidiaries, in securities brokerage, banking, money management, and financial advisory services. Its subsidiaries include Charles Schwab & Co. (a leading discount broker-dealer), Charles Schwab Investment Management (a mutual fund investment advisor) and Charles Schwab Bank.In this article, let's take a look at this brokerage firm and try to explain to investors the reasons this is an apparently appealing investment opportunity.The FocusThe company provides financial services to individuals and institutional clients through two segments: Investor Services and Institutional Services. The Investor Services segment provides retail brokerage and banking services to individual investors. The Institutional Services segment provides custodial, trading, and support services to independent investment advisors. The Institutional Services segment also provides retirement plan services, specialty brokerage services, and mutual fund clearing services. The company seeks to meet the financial services needs of investors, advisers and employers. It focuses on building client loyalty with the goal of attracting new clients and serving them. Additionally, Schwab麓s strengths through shared core processes and technology advances which help create services that are scalable and consistent with the business.Interest Rates, Capital Structure and Debt-to-Capital RatioThe results are dependent on short-term interest rates, as 37% of its top line came from net interest income in the first quarter of 2014.The broker has been making significant efforts to become less dependent on interest rates, which we expect Federal Reserve will raise them in late 2014 or 2015. Also, the company麓s plan is to reach a low-cost capital structure and targets a long-term debt-to-total financial capital ratio of less than 30%.Lucrative Derivatives Trading In 2011, the company acquired Compl
Top 10 Japanese Stocks To Buy Right Now: Unilever PLC(UL)
Unilever PLC operates as a fast-moving consumer goods company in Asia, Africa, Europe, and the Americas. It offers personal care products, including skin care and hair care products, deodorants, and oral care products under the brand names of Axe, Brylcreem, Dove, Fissan, Lifebuoy, Lux, Pond's, Radox, Rexona, Signal & Close Up, Simple, St Ives, Sunsilk, TRESemm� Vaseline, and VO5. The company also provides home care products comprising laundry tablets, powders and liquids, soap bars, and a range of cleaning products under the Cif, Comfort, Domestos, Omo, Radiant, Sunlight, and Surf brand names. In addition, it offers food products consisting of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads, as well as cooking products, such as liquid margarines. The company markets its food products under the brand names of Becel/Flora, Bertolli, Blue Band, Rama, Hellmann?s, Amora, and Knorr. Further, it provides refreshment products, which includ e ice cream, tea-based beverages, weight-management products, and nutritionally enhanced staples under the brand names of Heartbrand, Lipton, and Slim Fast. Unilever sells its products through its own sales force, as well as through independent brokers, agents, and distributors to chain, wholesale, co-operative and independent grocery accounts, food service distributors, and institutions. The company, formerly known as Lever Brothers Limited, was founded in 1885 and is based in London, the United Kingdom. Unilever PLC is a subsidiary of The Unilever Group.
Advisors' Opinion:- [By Jon Wallis]
A stereotypical blue chip
Unilever� (LSE: ULVR ) (NYSE: UL ) is a stereotypical blue-chip company -- it has an international reputation for quality and reliability, and has proved its ability to operate profitably, despite the vicissitudes of the stock market, to deliver rewards to its shareholders over the long term. - [By Ben Levisohn]
Shares of Procter & Gamble have dropped 3.2% during the past 12 months, lagging Unilever’s (UL) 2.5% rise, Colgate-Palmolive’s (CL) 8.7% advance and Kimberly-Clark’s (KMB) 3.1% gain.
- [By Mark Rogers]
Today, I'm weighing up one of the London market's most renowned "high-quality" companies,�Unilever� (LSE: ULVR ) (NYSE: UL ) , and asking whether the recent market sell-off provides investors with a chance to buy in.
Top 10 Japanese Stocks To Buy Right Now: Ultratech Inc.(UTEK)
Ultratech, Inc. develops, manufactures, and markets photolithography and laser thermal processing equipment. It supplies step-and-repeat photolithography systems based on one-to-one imaging technology to semiconductor device manufacturers for applications involving line geometries of 0.75 microns or greater and to nanotechnology manufacturers. The company?s steppers are also used to manufacture semiconductors that are used in various applications, such as telecommunications, automotive control systems, power systems, and consumer electronics. It also supplies 1X photolithography systems to thin film head manufacturers; and offers LSA100, a laser-based thermal annealing tool used by the semiconductor industry for various process steps, including activation of implanted impurities, dielectric film formation, formation of silicides, and stabilization of copper grain structures. Ultratech, Inc. sells its systems to semiconductor, advanced packaging, high-brightness light emit ting diodes, thin film head, and various other nanotechnology manufacturers in North America, Europe, and Asia. The company was founded in 1979 and is headquartered in San Jose, California.
Advisors' Opinion:- [By Stephen Simpson, CFA]
Fellow Seeking Alpha contributor Ashraf Eassa and I have both written previously about Ultratech (UTEK), a semiconductor equipment company that we both like for its innovative positions in laser spike annealing (LSA) and advanced packaging lithography ("flip chips"), as well as the potential of its steppers in LED manufacturing. In particular, we have both made the case that advanced annealing technologies are likely to be a critical factor in the move to sub-20nm processes.
Top 10 Japanese Stocks To Buy Right Now: Endocyte Inc.(ECYT)
Endocyte, Inc., a biopharmaceutical company, develops targeted therapies for the treatment of cancer and inflammatory diseases. The company uses its proprietary technology to create novel small molecule drug conjugates (SMDCs) and companion imaging diagnostics. Its SMDCs target receptors that are over-expressed on diseased cells, relative to healthy cells. The company?s principal SMDC product candidate, EC145, has been evaluated in a randomized Phase II clinical trial for the treatment of women with platinum-resistant ovarian cancer, and it also completed a Phase II single-arm clinical trial for pre-treated non-small cell lung cancer. Its preclinical development products include EC0489 and EC0225, which are in Phase I clinical trial for the treatment of solid cancer tumors; EC17 that has completed Phase I clinical trial for the treatment of solid cancer tumors; EC0531, a tubulysin conjugate to treat solid tumors; and EC0746 and EC0565 foliate receptors for the reduction o f inflammation. The company?s products under development also comprise EC20, a proprietary companion imaging diagnostic product for the identification of folate receptor in cancer patients; EC1069 for prostate cancer therapy; and EC0652 that is in early clinical trials for use as a companion imaging diagnostic for SMDCs. Endocyte, Inc. was founded in 1995 and is headquartered in West Lafayette, Indiana.
Advisors' Opinion:- [By Roberto Pedone]
Endocyte (ECYT), a biopharmaceutical company, develops targeted therapies for the treatment of cancer and inflammatory diseases in the U.S. This stock closed up 2.2% to $6.45 a share in Thursday's trading session.
Thursday's Range: $6.14-$6.48
52-Week Range: $6.01-$33.70
Thursday's Volume: 893,000
Three-Month Average Volume: 1.91 millionFrom a technical perspective, ECYT jumped higher here right above its recent 52-week low of $6.01 with lighter-than-average volume. This move higher on Thursday is starting to push shares of ECYT within range of triggering a major breakout trade. That trade will hit if ECYT manages to clear some near-term overhead resistance levels at $6.82 to $7.30 with high volume.
Traders should now look for long-biased trades in ECYT as long as it's trending above its 52-week low of $6.01 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.91 million shares. If that breakout hits soon, then ECYT will set up to re-fill some of its previous gap-down-day zone from earlier this month that started above $17.50.
Top 10 Japanese Stocks To Buy Right Now: Liberty Coal Energy Corp (LBTG)
Liberty Coal Energy Corp, incorporated on August 31, 2007, is an exploration-stage company. The Company is a precious metal mineral exploration, development and production company. The primary business focus of the Company is to acquire, explore and develop coal properties in North America. On February 1, 2012, the Company entered into a letter of intent for the acquisition of private mineral leasehold rights to certain coal mining property in Owsley County, Kentucky with AMS Development LLC. and Colt Resources, Inc.
The Owsley property covers approximately 1,000 acres and has 3,600,000 tons of coal recoverable by surface and high wall (auger) methods. As of September 31, 2011, the Company had not earned any revenues.
Advisors' Opinion:- [By Peter Graham]
On Friday, small cap mining stocks Maverick Minerals Corp (OTCMKTS: MVRM) and Liberty Coal Energy Corp (OTCMKTS: LBTG) plus oil stock Gray Fox Petroleum Corp (OTCBB: GFOX) sank 30.9%, 16.67% and 11.2%, respectively. However, only one of these stocks appears to have been the subject of some kind of paid promotion in the form of an investment in some shares. So will these three small cap mining or oil stocks keep coming up empty for investors this week? Here is a closer look:
Top 10 Japanese Stocks To Buy Right Now: GSV Capital Corp (GSVC)
GSV Capital Corp. (GSV Capital), formerly NeXt Innovation Corp., is a development-stage company. The Company is an externally managed, non-diversified closed-end management investment company. The Company�� investment objective is to maximize capital appreciation. The Company will seek to achieve its investment objective by investing primarily in privately held high growth venture backed companies and select mid cap and large cap publicly traded companies.
The Company may also invest in select publicly-traded equity securities of companies that otherwise meet its investment criteria. It seeks to acquire its investments primarily through private secondary market transactions and, to a lesser extent, through transactions executed on public securities exchanges and direct investments in its portfolio companies. The Company�� investment activities will be managed by GSV Asset Management. GSV Capital Service Company will provide the administrative services.
Advisors' Opinion:- [By Helix Investment Research]
Keating Capital is far from the only publicly traded pre-IPO investment company. There are several others, including GSV Capital (GSVC) and Firsthand Technology Value Fund (SVVC). Hercules Technology Growth Capital (HTGC) is also a pre-IPO fund, but with the bulk of its assets (over 92%) invested into loans to and debt of private companies, as opposed to their equity, the company's investment philosophy is different than that of these other pre-IPO funds. Unlike GSV Capital and Firsthand, Keating Capital, as a matter of policy, always purchases equity directly from portfolio companies, never from secondary markets such as SharesPost or SecondMarket. Mr. Keating outlined that this is due to the company's requirement that it be given access to all relevant financial data and managerial projections of its portfolio companies at all times, something that Mr. Keating believes is essential to being able to make informed investor decisions. We note that shares of Facebook (FB) and Twitter are conspicuously absent from Keating Capital's portfolio; the company declined to purchase shares of either company due to an inability to acquire direct financial information regarding these companies. In addition, Keating Capital has a stated goal of investing in the most senior equity securities available at each portfolio company.
- [By Jon C. Ogg]
Chegg, Inc. (NYSE: CHGG) was the IPO disappointment of the week. Sure it has a lot of competition, but IPOs are supposed to be on fire now. Chegg managed to gain almost 3% on Friday to close at $9.13, but one must remember that the IPO price at $12.50 never saw the $12.50 open. The stock opened at $9.80 and closed at $8.88 on the first day, a move which will baffle IPO investors of growth companies who are buying an IPO at a time when major indexes are hitting new all-time highs. By the way, GSV Capital Corp. (NASDAQ: GSVC) was a runner-up�loser along with Chegg, as this fund owned shares of Twitter and Chegg pre-IPO. The stock price was above $16 before the Twitter IPO and is now down to $12.03 after another 8.8% drop on Friday. Bye-bye.
- [By Hibah Yousuf]
Shares of GSV Capital (GSVC), a publicly traded fund that invests in "high growth" private companies, rallied almost 13% Friday. GSV said it holds 1.9 million shares of Twitter as of June 30. Twitter is the fund's biggest holding, at 15% of the total portfolio.
- [By Jon C. Ogg]
A third angle to consider is the business development company GSV Capital Corp. (NASDAQ: GSVC). This is public and it owns a slug of Twitter shares. Its recent peak was $16.90 and the shares were recently down at $15.60. This stock rose into the Facebook, Inc. (NASDAQ: FB) IPO as well, only to roll over as Facebook’s shares did. The portfolio update from GSV on October 3 showed the following: Twitter, Inc. was shown to have a fair value of GSV Capital investment of $37.6 million, or about 15.1% of net assets at the time. If the IPO price has risen, so has that value. Another hot upcoming IPO of Chegg, Inc. was shown to have a fair value of GSV investment of $14.0 million, worth some 5.6% of net assets. Be advised that this stock has doubled since mid-summer, and shares fell rapidly from $18 down to $10 after the Facebook IPO.
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