Best Promising Companies To Own In Right Now

Huge fortunes are won and lost in the world of biotech nearly every week. For those new to this world, it can appear both alluring and scary. Biotech investing for beginners isn't for the fainthearted, but the potential rewards are great. Here are three important things to keep in mind if you're contemplating trying out the clinical-stage biotech waters.

1. Flimsy financials
Throw revenue growth, earnings per share, valuation multiples, and pretty much every other financial figure out the window if you're looking to invest in an up-and-coming biotech. These companies typically won't have any revenue or earnings of significance.

For example, Keryx Biopharmaceuticals (NASDAQ: KERX  ) reported no revenue for 2012. Not a dime. The company lost $22.7 million last year and even more the year before that. However, those financial results really aren't important at this point.

Biotech investors should focus on cash, though -- in particular, the burn rate for that cash. A company can have a promising product, but that promise fizzles without enough cash to complete clinical trials.

Hot Tech Stocks To Own Right Now: SPDR KBW Bank Etf (KBE)

SPDR KBW Bank ETF (the Fund), formerly KBW Bank ETF, seeks to replicate as closely as possible the performance of the KBW Bank Index (the Index). The Index is a float-adjusted, modified-market capitalization weighted index of geographically diverse companies representing national money center banks and regional banking institutions listed on United States stock markets. It is created and maintained by Keefe, Bruyette & Woods, Inc.

The Fund utilizes a passive or indexing approach, and attempts to approximate the investment performance of its Index, by investing in a portfolio of stocks intended to replicate the Index. The Fund�� investment manager is SSgA Funds Management, Inc.

Advisors' Opinion:

• [By Mary Anne & Pamela Aden]

  So, for now, the US stock market is the best overall market. So continue holding the stocks you have, which are mostly doing very well. If you want to buy new positions and increase your stock allocation, the following ETFs are among the strongest ETFs, and we recommend them for purchase: SPDR KBW Bank (KBE)
  
  Consumer Discretionary SPDR (XLY)
  
  Merrill Lynch Retail HOLDRS (RTH)
  
  iShares Dow Jones US Financial Service (IYG)
  
  PowerShares Dynamic Leisure & Entertainment (PEJ)
  
  

  Subscribe to The Aden Forecast here��/P>

Best Promising Companies To Own In Right Now: Global X China Financials ETF (CHIX)

Global X China Financials ETF (the Fund) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S-BOX China Financials Index (the Underlying Index). The Underlying Index is a free float adjusted, liquidity tested and market capitalization-weighted index that is designed to measure performance of the investable universe of companies in the Financials sector of the Chinese economy, as defined by Structured Solutions AG. Global X Management Company, LLC serves as the investment adviser to the Fund. Advisors' Opinion:

• [By pamatlarge]

  Investors looking to short a particular sector can choose from several Global X long ETFs. The Global X China Consumer ETF (CHIQ) concentrates its investments in consumer cyclical goods and consumer defense goods. The Global X China Energy ETF (CHIE) primarily holds stocks in coal, oil and utility companies. The Global X China Financials ETF (CHIX) only invests in financial services companies and real estate companies. The Global X China Industrials ETF (CHII) holds stocks in industrial companies and basic materials companies. The Global X China Materials ETF (CHIM) invests in basic materials stocks. The Global X China Technology ETF (CHIB) holds technology stocks as the core of its investments. All of these ETFs are particularly sensitive to sector downturns and general economic contractions.

Best Promising Companies To Own In Right Now: Renishaw PLC (RSW)

Renishaw plc is a metrology company. The Company is engaged in the design, manufacture and sale of advanced precision metrology and inspection equipment together with products for the healthcare sector, including Raman spectroscopy systems, dental systems, molecular diagnostic equipment and neurosurgical products. The Company operates in two segments: metrology and healthcare products. The Company�� metrology segment product include Machine Tool Probe Systems, Co-ordinate Measuring Machine (CMM) products, large scale metrology, fixtures, materials research, styli for probe systems, performance testing products, gauging and position encoders. Its healthcare products include Dental Scanners, Raman Microscopes, Dental CAD Software, Neurosurgical robot, Structural and Chemical Analyser, In situ monitors and Neurosurgical Implantables. Advisors' Opinion:

• [By Inyoung Hwang]

  Renishaw Plc (RSW) tumbled 5.7 percent to 1,580 pence, its lowest price since Aug. 7. The maker of precision tools said revenue for the quarter ended in September fell to 79 million pounds from 95.9 million pounds in the year-ago period.

Best Promising Companies To Own In Right Now: Lexmark International Inc.(LXK)

Lexmark International, Inc., together with its subsidiaries, engages in the development, manufacture, and supply of printing, imaging, document workflow, and content management solutions for offices in North and South America, Europe, the Middle East, Africa, Asia, the Pacific Rim, and the Caribbean. It offers monochrome and color laser printers, laser multifunction products, inkjet all-in-one devices, dot matrix printers, and cartridges and other supplies; and services and solutions, including maintenance, consulting, and systems integration, as well as managed print services, such as asset lifecycle management, implementation and decommissioning services, consumables management, optimization services, and utilization management. The company also provides enterprise content management (ECM) software products, including ImageNow document management, document imaging, and workflow suite that allows users to capture, process, and collaborate on important documents and inform ation, protect data integrity throughout its lifecycle, and access precise content; and industry specific workflow solutions for the healthcare, higher education, government, and financial services industries, as well as for back office functions, including accounting, human resources, contracts, and records. Its software modules include Retention Policy Manager to manage the complete lifecycle of content from creation to destruction or disposition; Business Insight, which integrates IBM Cognos to provide industry and business process dashboards, operational and ad-hoc reporting, and report design tools; workflow software that automates processing steps, simplifies work tasks, and provides real-time monitoring; and eForms module, which enables the online entry and collection of raw data in electronic forms that are accessible from Web sites and portals. The company was founded in 1990 and is headquartered in Lexington, Kentucky.

Advisors' Opinion:

• [By Rich Duprey]

  Printer maker�Lexmark (NYSE: LXK  ) announced yesterday its third-quarter dividend of $0.30 per share, the same rate it's paid for the past five quarters after raising the payout 20% from $0.25 per share.

Best Promising Companies To Own In Right Now: World Acceptance Corp (WRLD)

World Acceptance Corporation operates a small-loan consumer finance business in 12 states and Mexico. The Company is engaged in the small-loan consumer finance business, offering short-term small loans, medium-term larger loans, related credit insurance and ancillary products and services to individuals. As of March 31, 2012, the Company offered standardized installment loans through 1,137 offices in South Carolina, Georgia, Texas, Oklahoma, Louisiana, Tennessee, Illinois, Missouri, New Mexico, Kentucky, Alabama, Wisconsin, and Mexico. The Company serves individuals with limited access to consumer credit from banks, credit unions, other consumer finance businesses and credit card lenders. In the United States offices, the Company also offers income tax return preparation services to its customers and others.

During the fiscal year ended March 31, 2012 (fiscal 2012), the Company opened 69 new offices. In each state in which it operates and in Mexico, the Company offers consumer installment loans, which are standardized by amount and maturity. The Company's loans are consumer installment loans, which are payable in fully amortizing monthly installments with terms generally of 4 to 36 months, and all loans are pre-payable at any time without penalty. During fiscal 2012, the Company's average originated gross loan term was approximately 12 months. As of March 31, 2012, the annual percentage rates on loans offered by the Company, which include interest, fees and other charges as calculated for the purposes of the requirements of the federal Truth in Lending Act, ranged from 24% to 204% depending on the loan size, maturity and the state, in which the loan is made. In addition, in certain states, the Company, as agent for an unaffiliated insurance company, sells credit insurance in connection with its loan transactions.

Specific allowable charges vary by state and, consistent with industry practice, the Company generally charges at or close to the maximum rates allowable under app! licable state law in those states that limit loan rates. Statutes in Texas and Oklahoma allow for indexing the maximum loan amounts to the Consumer Price Index. The Company�� loan products are pre-computed loans in which the finance charge is a combination of origination or acquisition fees, account maintenance fees, monthly account handling fee and other charges permitted by the relevant state laws.

The Company, as an agent for an unaffiliated insurance company, markets and sells credit life, credit accident and health, credit property, and unemployment insurance in connection with its loans in selected states where the sale of such insurance is permitted by law. Credit life insurance provides for the payment in full of the borrower's credit obligation to the lender in the event of death. Credit accident and health insurance provides for repayment of loan installments to the lender, which come due during the insured's period of income interruption resulting from disability from illness or injury. Credit property insurance insures payment of the borrower's credit obligation to the lender in the event, which the personal property pledged as security by the borrower is damaged or destroyed by a covered event. Unemployment insurance provides for repayment of loan installments to the lender, which come due during the insured�� period of involuntary unemployment. The Company requires each customer to obtain specific credit insurance in the amount of the loan for all loans originated in Georgia under the Georgia Industrial Loan Act, and encourages customers to obtain credit insurance for all loans originated in South Carolina, Louisiana, Alabama and Kentucky and on a limited basis in Tennessee, Oklahoma, and Texas. Customers in those states obtain such credit insurance through the Company.

In South Carolina, Georgia, Louisiana, Kentucky and Alabama, the Company charges its borrowers for its non-file premiums in connection with certain loans in lieu of recording and perfecting the! Company� �s security interest in the loan collateral. The premiums are remitted to a third party insurance company for non-file insurance coverage. The Company also markets automobile club memberships to its borrowers in Georgia, Tennessee, New Mexico, Louisiana, Alabama, Texas, and Kentucky as an agent for an unaffiliated automobile club. Club memberships entitle members to automobile breakdown and towing reimbursement and related services. The Company is paid a commission on each membership sold.

The Company offers income tax return preparation and electronic filing. This program is provided in all but a few of the Company�� the United States offices. During fiscal 2012, the Company prepared 44,000 returns. During fiscal 2012, 93.4% of the Company�� revenues were attributable to the United States customers and 6.6% were attributable to customers in Mexico. During fiscal 2012, approximately 84.7% of the Company's loans were generated through refinancings of outstanding loans and the origination of new loans to previous customers.

Advisors' Opinion:

• [By Geoff Gannon]

  1. World Acceptance (WRLD)
  2. Express Scripts (ESRX)
  3. Walgreen (WAG)
  4. Humana (HUM)
  5. McDonald's (MCD)

  Those are the kinds of companies a younger ��and poorer ��Warren Buffett might buy. Actually, a few of those companies are big enough for Warren Buffett to buy today.

• [By Canadian Value]

  So I�� going to stick my next out and share my views on four battleground stocks that are among my favorite shorts: World Acceptance (WRLD), Green Mountain (GMCR), Herbalife (HLF), and InterOil (IOC). And next week at the Value Investing Congress I will present another short, my largest.

Best Promising Companies To Own In Right Now: Credit Suisse Group(CS)

Credit Suisse Group AG, together with its subsidiaries, operates as a financial services company. The company operates in three segments: Private Banking, Investment Banking, and Asset Management. The Private Banking segment offers advisory services and a range of wealth management solutions, including pension planning, life insurance products, tax planning, and wealth and inheritance advice for the high-net-worth and ultra-high-net-worth individuals. This segment also supplies banking products and services to affluent, high-net-worth and ultra-high-net-worth clients, and corporates and institutions. The Investment Banking segment provides investment banking and securities products and services to corporations, governments, pension funds, and institutions. Its products and services include debt and equity underwriting, sales and trading, mergers and acquisitions advice, divestitures, corporate sales, restructuring, and investment research. The Asset Management segment offe rs integrated investment solutions and services to institutions, governments, foundations and endowments, corporations, and individuals. It provides access to a range of investment classes across alternative investment, asset allocation, and traditional investment strategies. The company operates in Switzerland, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. Credit Suisse Group AG was founded in 1856 and is headquartered in Zurich, Switzerland.

Advisors' Opinion:

• [By Laura Brodbeck]

  Thursday

  Earnings Expected From: Credit Suisse Group (NYSE: CS), Expedia Inc. (NASDAQ: EXPE), Kellogg Company (NYSE: K), LinkedIn Corporation (NYSE: LNKD), Philip Morris International Inc. (NYSE: PM) Economic Releases Expected: French trade balance, British trade balance, eurozone consumer confidence, German industrial production, Bank of England interest rate decision, European Central Bank interest rate decision, US initial and continuing jobless claims, Chinese trade balance

  Friday