Combining nice dividends with a growing industry that comprises roughly one-fifth of the nation's GDP should make for an attractive stock -- in theory. Unfortunately, the theoretical doesn't always translate well in the real world.�
While there are quite a few solid dividend stocks in the health care sector, not all of them are as good as they might seem. In fact, some of them might be downright scary. Here are two health-care stocks that could have investors shaking in their boots over the next few years.
Mayan calendar deja vu
Sky-high dividend yield? Low payout ratio? PDL BioPharma (NASDAQ: PDLI ) checks these items and more off an investor's list. The company's 7.8% yield ranks as one of the highest in the entire stock market. Its payout ratio of 41% is quite attractive. Unfortunately, PDL's situation is reminiscent of the Mayan calendar hoopla from last year. The difference with PDL is that when its calendar ends, that means it's really the end.
Best Consumer Service Stocks To Buy For 2016: Ram Resources Ltd (RMR)
Ram Resources Limited is an Australia-based company. The Company is engaged in exploration of mineral properties in Greenland and Western Australia. The Company�� Motzfeld Project is located in South Greenland, some 24 kilometers from the town of Narsarsuaq and comprises exploration licences 2010/46 and 2011/24. The Company holds 51% interest in the Motzfeldt project. The Romney (EL 2010/46) located in the Lejrelev Valley about 3.5 kilometers to the west of the Aries prospect. The Merino forms a steep-sided ridge at the north-eastern end of this valley, about 2.5 kilometers to the north-north-west of Aries. The Company�� Voskop Prospect is located within Exploration Licence 2011/24 in the Storeelv Valley about 7 kilometers to the northwest of the Company�� Aries target. The Drysdale Prospect is located on top of a broad ridge about 7.5 kilometers southeast of Aries and at an elevation of about 1,600 meter. Advisors' Opinion:- [By Chris DeMuth Jr.]
To use a recent REIT example, take CommonWealth REIT. This is a large well established REIT that is valued in the market with one of the lowest multiples of FFO in the industry. The reason the company trades at a multiple roughly half its competitors, in my opinion, is the poorly aligned management incentive structure. The management of CommonWealth is contracted to an external management firm, Reit Management Research (RMR). Many of the trustees of CommonWeath are owners of RMR and serve on both boards. RMR is primarily compensated by growing CWH's assets which are under RMR's management, not on stock price, FFO, or anything else that is closely aligned to generating shareholder returns. This has the perverse effect of motivating them to issue lots of equity and buy lots of buildings irrespective of the value add to CommonWealth shareholders. Neither the management company nor its employees have a significant amount of their income based on the performance of CommonWealth's stock price. This has resulted in an activist, Corvex Capital, buying a significant position in the company and taking action to replace the board and the management team. The proxy advisory firm, ISS, has sided with the activist and recommended that shareholders vote out the current trustees. ISS notes, "Between 2007-2012 …while the CommonWealth management team increased assets by 198% of period-ending market cap - driving a significant increase in fees payable to management - Commonwealth's share price - the measure of value appreciation for shareholders - fell by 68%." This is the poster child of misaligned management incentives.
Top 10 High Dividend Companies To Invest In 2015: Immunomedics Inc.(IMMU)
Immunomedics, Inc., a biopharmaceutical company, engages in the research, development, manufacture, and marketing of monoclonal, antibody-based products for the treatment of cancer, autoimmune, and other serious diseases in the United States and Europe. The company?s products include epratuzumab, a Phase III clinical trail product for the treatment of systemic lupus erythematosus and non-Hodgkin?s lymphoma; Veltuzumab, a Phase I/II clinical study completed product for the treatment of patients with non-Hodgkin?s lymphoma, immune thrombocytopenic purpura, and chronic lymphocytic leukemia; Yttrium Y 90 Clivatuzumab tetraxetan, a humanized monoclonal antibody for pancreatic cancer that is in Phase Ib/II clinical trail; and Yttrium Y 90 epratuzumab tetraxetan, a Phase I/II clinical study product for patients with non-Hodgkin?s lymphoma. Its early phase clinical trial products comprise Milatuzumab, a transmembrane protein product for antibody-drug conjugate therapy. The com pany also develops Dock-and-Lock methodology for making fusion proteins and multifunctional antibodies, as well as a new method of delivering imaging and therapeutic agents selectively to disease, primarily different solid cancers. In addition, it markets and sells a diagnostic product, LeukoScan, which is used to treat infection and inflammation in bones for patients with suspected osteomyelitis, including patients with diabetic foot ulcers. Immunomedics, Inc. has a license and collaboration agreement with Nycomed GmbH to develop, manufacture, and commercialize veltuzumab in the subcutaneous formulation for the treatment of various non-cancer indications; and a partnership and cross-licensing agreement with Alexis Biotech Ltd., to develop vaccines against cancers that include melanoma and chronic lymphocytic leukemia, and infectious diseases, such as AIDS. The company was founded in 1982 and is headquartered in Morris Plains, New Jersey.
Advisors' Opinion:- [By Sean Williams]
In terms of clinical data, small-cap biotechnology company Immunomedics (NASDAQ: IMMU ) jumped by double digits after reporting early stage, but nonetheless positive, data from its antibody-drug conjugate program. Two of Immunomedics' ADC's, IMMU-130 which is targeted at metastatic colorectal cancer, and IMMU-132, which is being tested on 13 different cancer types, demonstrated tumor shrinkage and some partial responses. We're still a long way from an approval, but ADC's certainly look like one pathway to effectively treating cancer. Make sure this is a company you've added to your Watchlist.
- [By Roberto Pedone]
Another under-$10 stock that's starting to move within range of triggering a big breakout trade is Immunomedics (IMMU), which is focused on the development of monoclonal antibody-based products for the targeted treatment of cancer, autoimmune and other serious diseases. This stock is off to a very bullish start in 2013, with shares up sharply by 110%.
If you take a look at the chart for Immunomedics, you'll notice that this stock has been uptrending decent for the last month, with shares moving higher from its low of $4.85 to its recent high of $6.54 a share. During that uptrend, shares of IMMU have been consistently making higher lows and higher highs, which is bullish technical price action. This uptrend is coming after shares of IMMU downtrended during July from $6.91 to that $4.65 a share low. Shares of IMMU are now starting to push within range of triggering a big breakout trade.
Market players should now look for long-biased trades in IMMU if it manages to break out above some near-term overhead resistance at $6.54 a share and then once it clears its 52-week high at $6.91 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 1.15 million shares. If that breakout triggers soon, then IMMU will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $8 to $10 a share, or possibly even north of $10 a share.
Traders can look to buy IMMU off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $5.52 a share or below more support at $5 a share. One can also buy IMMU off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
- [By Wallace Witkowski]
Immunomedics Inc. (IMMU) �shares rose 19% to $6.18 on heavy volume after the small cap biotech said it just started treating patients with its pancreatic cancer drug in a late-stage clinical trial.
- [By Sean Williams]
What: Shares of Immunomedics (NASDAQ: IMMU ) , a biopharmaceutical company researching monoclonal, antibody-based products to treat cancer and other autoimmune disorders, jumped as much as 15% after providing a clinical update on its antibody-drug conjugate programs.
Top 10 High Dividend Companies To Invest In 2015: Medical Cannabis Payment Solutions (REFG.PK)
Medical Cannabis Payment Solutions, incorporated on December 1, 2005, is a provider of integrated supply and distribution technology. The Company�� Seed-to-Sale (S2S) integrated solution is a management and compliance technology for growers, caregivers and dispensaries in the market. The Company also works with public officials and government agencies to expand the acceptance of medicinal cannabis, and the adoption of a legal framework where maximum market expansion is possible. The Company solves the fragmentation problem by identifying tools that are important to dispensaries, and customizing those tools specifically catered to the industry. The Company's solutions include Spark, Ghost and S2S.
Spark
The Company�� SPARK Hosted Voice over Internet Protocol (VoIP) provides customers with enterprise-class hosted phone systems customized to fit customers��needs. SPARK's service is a fully-managed, cloud-based system. The Company offers the convenience of an online Internet Protocol (IP)-based telecommunications system while still delivering substantial savings to customers bottom line.
Ghost
By offering customers a customized, tailored mobile solution, the Company's Ghost Mobile Apps give a marketing tool with a texting and e-mail solution, keeping customers in constant contact with patients and clients. The Company creates an optimized experience in context to each device or screen size.
Advisors' Opinion:- [By Alan Brochstein]
Not too surprisingly, supply is starting to increase. We have seen some companies enter the space by expanding their own businesses, but there have been some reverse mergers lately too. I had mentioned Refill Energy (REFG.PK) recently (soon to be Medical Cannabis Financial Group), but earlier this month Promap (PMAP.OB) acquired 94% of Advanced Cannabis Solutions (link to 8-K). As an aside, I think that this company is worth considering given the management team and the business model. Investors should keep in the back of their mind that there are many companies that are quietly developing their business models and could become public over time, especially as the regulatory and legal landscapes improve.
Top 10 High Dividend Companies To Invest In 2015: Wausau Paper Corp. (WPP)
Wausau Paper Corp. manufactures, converts, and sells paper and paper products in the United States and internationally. It operates in two segments, Tissue and Paper. The Tissue segment produces and sells paper towel and tissue products for the ?away-from-home? market, including washroom roll and folded towels, windshield folded towels, industrial wipers, dairy towels, household roll towels, and various towel, tissue, and soap dispensers, as well as other premium towel and tissue products to paper and sanitary supply distributors under the DublSoft, EcoSoft, OptiCore, Revolution, Dubl-Nature, and Dubl-Tough names. The Paper segment focuses on four core markets comprising food, industrial and tape, coated and liner, and print and color. This segment manufactures products for food processing, food packaging, and foodservice, such as products used for baking applications, microwave popcorn, and other cheese and meat processing products; products for interleaving, saturating, coating, unsaturated crepe base, and a range of micro markets; specialty liners, and siliconized release papers for use in pressure sensitive tapes, specialty label applications, the production of fiber composite applications, and casting sheets used in the production of solar cells; and uncoated printing, writing, text, cover, and board grades for commercial printers, in-plant print shops, quick printers, copy centers, and office supply and mass merchandisers under the Wausau Paper, EcoSelect, ExperTec, DuraTec, InvenTec, ProGard, ProRedi, ProPly, ProTec, Astrobrights, Royal, Exact, Professional Series, Intrigue, and Creative Collection names. This segment also produces a range of custom color products, which include matte board, end leaf, and luxury packaging applications. Wausau Paper Corp. was founded in 1899 and is headquartered in Mosinee, Wisconsin.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Wausau Paper (NYSE: WPP ) , whose recent revenue and earnings are plotted below. - [By Jonathan Morgan]
WPP Plc (WPP), the world�� biggest advertising company, advanced 3.6 percent to 1,210 pence in London trading.
LSE advanced 7.4 percent to 1,590 pence, the highest price since February 2008, as the operator of Europe�� oldest independent bourse reported a 39 percent increase in first-quarter revenue.
- [By Holly LaFon]
In the second half of the year, Crescent established new positions in a few companies that have more such global footprints. We initiated investments in Google (GOOG), as well as the advertising agencies Interpublic (IPG) and WPP (WPP). The fortunes of all three are tied directly to the level of global advertising spend, and they all saw their shares prices decline due to concerns of a recession-related slowdown. At our purchase price, we believe we were buying each at roughly 11-13x our estimated earnings for 2012 should the fears of a macroeconomic slowdown prove correct. This strikes us as a very reasonable multiple to pay for asset-light global businesses that generate strong free cash flow across the business cycle and have the capability to grow earnings greater than GDP in a normal economic environment.
Top 10 High Dividend Companies To Invest In 2015: Citigroup Inc.(C)
Citigroup, Inc., a global financial services company, provides consumers, corporations, governments, and institutions with a range of financial products and services. The company operates through two segments, Citicorp and Citi Holdings. The Citicorp segment operates as a global bank for businesses and consumers with two primary businesses, Regional Consumer Banking and Institutional Clients Group. The Regional Consumer Banking business provides traditional banking services, including retail banking, and branded cards in North America, Asia, Latin America, Europe, the Middle East, and Africa. The Institutional Clients Group business provides securities and banking services comprising investment banking and advisory services, lending, debt and equity sales and trading, institutional brokerage, foreign exchange, structured products, cash instruments and related derivatives, and private banking; and transaction services consisting of treasury and trade solutions, and securiti es and fund services. The Citi Holdings segment operates Brokerage and Asset Management, Local Consumer Lending, and Special Asset Pool businesses. The Brokerage and Asset Management Business, through its 49% stake in Morgan Stanley Smith Barney joint venture and Nikko Cordial Securities, offers retail brokerage and asset management services. The Local Consumer Lending business provides residential mortgage loans, retail partner card loans, personal loans, commercial real estate, and other consumer loans, as well as western European cards and retail banking services. The Special Asset Pool business is a portfolio of securities, loans, and other assets. Citigroup Inc. has approximately 200 million customer accounts and operates in approximately 160 countries. The company was founded in 1812 and is based in New York, New York.
Advisors' Opinion:- [By Ben Levisohn]
During the past 12 months, JPMorgan’s stock has gained just 19%, closer to Citigroup’s (C) 13% rise than to Bank of America’s (BAC) 38% advance or Wells Fargo’s (WFC) 31% gain.
- [By John Grgurich]
Two hours into trading, Citigroup (NYSE: C ) is up 0.8%, riding the market wave of reassuring -- or at the very least not terrifying -- congressional testimony from Federal Reserve Chairman Ben Bernanke. Monday's positive second-quarter earnings report isn't hurting the stock's performance today either.
Top 10 High Dividend Companies To Invest In 2015: PCM Fund Inc (PCM)
PCM Fund, Inc. (the Fund), formerly PIMCO Commercial Mortgage Securities Trust, Inc., is a non-diversified, closed-end bond fund. The Fund's primary investment objective is to achieve current income by investing in a portfolio comprising primarily commercial mortgage-backed securities (CMBS). These securities are fixed-income instruments representing an interest in mortgage loans on commercial real estate properties, such as office buildings, shopping malls, hotels, apartment buildings, nursing homes and industrial properties.
Capital gains from the disposition of investments are a secondary objective of the Fund. The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its net assets plus the amount of borrowings for investment purposes in CMBS. Pacific Investment Management Company LLC (PIMCO) is the Fund's investment manager.
Advisors' Opinion:- [By Sally Jones]
Founded in 1986 by the legendary investor Bill Miller, Private Capital Management (PCM) is now owned by portfolio manager and CEO, Gregg Powers. He is widely-known for his research skill and has been a key driver at PCM since 1988.
Top 10 High Dividend Companies To Invest In 2015: Anadolu Efes Biracilik ve Malt Sanayii AS (AEFES)
Anadolu Efes Biracilik ve Malt Sanayii AS is the holding company of Efes Beverage Group, based in Turkey. Its activities consist of production, bottling, selling and distribution of beer under a number of trademarks and also production, bottling, selling and distribution of sparkling and still beverages with the Coca-Cola company trademark. The Company owns and operates a number of breweries in Turkey and abroad, malt production facilities in Turkey and Russia, and also a number of facilities in Turkey and in other countries for sparkling and still beverages production. It has joint control over Coca-Cola Icecek AS (CCI), which undertakes production, bottling and distribution facilities of Coca-Cola products in Turkey, Pakistan, Central Asia and the Middle East. Also the Company has joint control over Anadolu Etap Tarm ve Gda Urunleri San. ve Tic. AS, which undertakes production and sales of fruit juice concentrates and purees in Turkey. Advisors' Opinion:- [By Andras Gergely]
The Borsa Istanbul Stock Exchange National 100 Index slid a second day after reaching a record on May 22. Anadolu Efes (AEFES) sank the most since September 2011. Otokar Otomotiv ve Savunma Sanayi AS, a Turkish producer of civilian and military vehicles, rose to an all-time high after Hurriyet Daily News reported the company could sell tanks to Saudi Arabia.
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