Sirius XM Holdings Inc. Bucks Pandora's Curse

Source: Sirius XM.

It was easy to be worried about Sirius XM Holdings (NASDAQ: SIRI  ) heading into this morning's quarterly results, but the satellite radio provider silenced those concerns with another blowout report. 

Pandora (NYSE: P  ) stock took a hit last week when the music streamer reported financial results that included sequential dips for June in active users, content served, and even its share of the U.S. radio listening market. Was a shakeout starting in the bustling digital music market now that tech giants are throwing big money at acquisitions and connected cars are broadening their reach to play nice with newer streaming apps?

We don't know if Sirius XM's strong second quarter included any sequential dips between May and June. The satellite radio star never followed Pandora into the practice of putting out monthly metrics, which Pandora itself is no longer providing. However, we do know that Sirius XM held up nicely for the quarter as a whole.

Revenue rose 10% to $1.035 billion, above the 8% top-line uptick that analysts were targeting. Sirius XM's subscriber base topped 26.3 million, gaining 475,472 net additions during the quarter and more than 1.2 million over the past year. 

Net income only inched 2% higher on a pre-tax basis, as operating expenses spiked higher during the period. The increase in expenses came mostly from higher revenue share and royalty payments, but marketing, customer service, and general and administrative costs also outpaced revenue and subscriber growth. That was countered by welcome dips in content costs and subscriber acquisition costs. Free cash flow, adjusted profitability, and EBITDA all rose at healthier clips from a year earlier. 

Sirius XM's profit of $0.02 a share matched expectations. Despite being waist-deep in what is now $6 billion in stock buyback authorizations -- including 350,000 shares repurchased during the quarter itself -- there are still too many shares outstanding to move the needle on a per-share basis. 

Rock on
Sirius XM stock opened 3% higher on Tuesday on the news. The revenue beat and encouraging subscriber growth were welcome, but the real driver pushing the stock up is Sirius XM boosting its full-year 2014 guidance higher for revenue, adjusted EBITDA, and free cash flow. It's true that Pandora took a hit last week despite boosting its own revenue and adjusted earnings outlook for the year. It's also true that Sirius XM kept its subscriber guidance intact. As long as the company continues to see its popularity swell -- something that Pandora investors didn't see between the months of May and June -- market sentiment will reward Sirius XM's overall performance. 

There are plenty of moving parts here. More automakers are making it easier for folks to turn to a growing number of digital music apps right from their steering wheels and dashboards as long as they have a Bluetooth-tethered smartphone. This has opened up the alternatives beyond satellite radio as a fix to commercial-laden terrestrial radio, but wireless carriers weaning consumers off of unlimited data plans mean that these "free" ad-supported apps aren't entirely free. 

Sirius XM appears to be holding up well in this environment. Strong auto sales are exposing more consumers to factory-installed receivers, and while conversion rates on these free trials are at a historical low of 42%, Sirius XM is clearly making it up in volume.

More from The Motley Fool: Warren Buffett Tells You How to Turn $40 Into $10 Million

3 Biotech Stocks Breaking Out With Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Stocks Ready for Breakouts

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Big Stocks to Trade for Gains This Summer

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Ultragenyx Pharmaceuticals

Ultragenyx Pharmaceuticals (RARE), a development-stage biotechnology company, focuses on the identification, acquisition, development and commercialization of various products for the treatment of rare and ultra-rare diseases in the U.S. This stock closed up 7.8% at $43 in Friday's trading session.

Friday's Volume: 674,000

Three-Month Average Volume: 201,471

Volume % Change: 242%

From a technical perspective, RARE ripped sharply higher here right above some key near-term support levels at $39.21 to $37.77 with strong upside volume. This sharp spike higher on Friday is quickly pushing shares of RARE within range of triggering a major breakout trade. That trade will hit if RARE manages to take out Friday's intraday high of $43.44 to some more key overhead resistance levels at $44.59 to $46 with high volume.

Traders should now look for long-biased trades in RARE as long as it's trending above some key near-term support at $39.21 and then once it sustains a move or close above those breakout levels with volume that hits near or above 201,471 shares. If that breakout materializes soon, then RARE will set up to re-test or possibly take out its next major overhead resistance levels $50.91 to $50.93. Any high-volume move above those levels will then give RARE a chance to tag $60.

ImmunoGen

ImmunoGen (IMGN), a biotechnology company, develops targeted anticancer therapeutics. This stock closed up 8.8% to $11.74 in Friday's trading session.

Friday's Volume: 3.82 million

Three-Month Average Volume: 924,583

Volume % Change: 354%

From a technical perspective, IMGN surged sharply higher here right above its 52-week low of $10.65 with monster upside volume. This sharp spike to the upside on Friday is quickly pushing shares of IMGN within range of triggering a near-term breakout trade. That trade will hit if IMGN manages to take out its 50-day moving average of $10.82 to some more near-term overhead resistance levels at $12 to $12.17 with high volume.

Traders should now look for long-biased trades in IMGN as long as it's trending above its 52-week low of $10.65 and then once it sustains a move or close above those breakout levels with volume that hits near or above 924,583 shares. If that breakout triggers soon, the IMGN will set up to re-fill more of its previous gap-down-day zone from June that started at $13.78. If that gap gets filled with volume, then IMGN could easily tag its next major overhead resistance levels at its 200-day moving average of $14.33 to $14.80.

Bluebird Bio

Bluebird Bio (BLUE), a clinical-stage biotechnology company, focuses on developing gene therapies for severe genetic and orphan diseases. This stock closed up 10.2% at $33.91 in Friday's trading session.

Friday's Volume: 1.03 million

Three-Month Average Volume: 509,689

Volume % Change: 115%

From a technical perspective, BLUE exploded higher here right above some key near-term support levels at $30.33 and its 50-day moving average of $29.60 with above-average volume. This monster move to the upside on Friday is quickly pushing shares of BLUE within range of triggering a near-term breakout trade. That trade will hit if BLUE manages to take out Friday's intraday high of $34 to some more near-term overhead resistance at $34.69 with high volume.

Traders should now look for long-biased trades in BLUE as long as it's trending above $32 or above $30.33 and then once it sustains a move or close above those breakout levels with volume that's near or above 509,689 shares. If that breakout kicks off soon, then BLUE will set up to re-test or possibly take out its next major overhead resistance levels at $38 to $40, or even $41 to its 52-week high at $41.75.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Stocks Under $10 Set to Soar

>>3 Big Stocks on Traders' Radars

>>Beat the S&P With 5 Stocks Everyone Else Hates

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

15 Oil and Gas Stocks to Sell Now

Popular Posts: Biggest Movers in Healthcare Stocks Now – GPRO MNKD STJ CVD15 Oil and Gas Stocks to Sell Now9 Oil and Gas Stocks to Buy Now Recent Posts: Hottest Basic Materials Stocks Now – RGLD IAG GG PAAS Hottest Services Stocks Now – OIBR NTT EBAY SKM Biggest Movers in Consumer Cyclical Stocks Now – TRW WHR WPRT BC View All Posts 15 Oil and Gas Stocks to Sell Now

This week, the overall grades of 15 oil and gas stocks are lower, according to the Portfolio Grader database. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).

Crescent Point Energy Corp. () ratings are on the decline this week as the company earns an F (“strong sell”). Last week, it received a D (“sell”). The stock also earns F’s in Portfolio Grader’s specific subcategories of Earnings Revisions, Earnings Surprise, Cash Flow and Margin Growth. Shares of the stock have been trading at an exceptionally rapid pace, up twofold from the week prior. The trailing PE Ratio for the stock is 118.70. .

Golar LNG Partners’ () rating falls to a D (“sell”) this week, down from C (“hold”) the week prior. Golar LNG Partners owns floating storage and regasification units and liquefied natural gas carriers. .

The rating of Cosan Limited Class A () slips from a D to an F. Cosan is a fully integrated company in the renewable energy and infrastructure segments in Brazil. The stock gets F’s in Cash Flow and Margin Growth. The stock’s trailing PE Ratio is 42.20. .

This week, Goodrich Petroleum Corporation () drops from a C to a D rating. Goodrich Petroleum explores, develops, produces and acquires oil and natural gas properties. In Earnings Growth, Earnings Revisions, Equity and Cash Flow the stock gets F’s. As of July 11, 2014, 25.2% of outstanding Goodrich Petroleum Corporation shares were held short. .

The rating of EXCO Resources, Inc. () declines this week from a D to an F. EXCO Resources is an oil and natural gas company involved in the exploration, exploitation, development and production of onshore North American oil and natural gas properties. The stock gets F’s in Earnings Surprise, Equity and Cash Flow. As of July 11, 2014, 10.8% of outstanding EXCO Resources, Inc. shares were held short. .

Calumet Specialty Products Partners, L.P.’s () rating weakens this week, dropping to an F versus last week’s D. Calumet Specialty Products produces hydrocarbon products in North America. The stock gets F’s in Earnings Growth, Earnings Momentum and Earnings Revisions. Cash Flow and Margin Growth also get F’s. Shares of the stock have been exchanging at an usually rapid pace, twice the rate of the week prior. .

Slipping from a C to a D rating, Plains All American Pipeline, L.P. () takes a hit this week. Plains All American Pipeline is involved in interstate and intrastate crude oil pipeline transportation and crude oil terminalling storage activities. The stock has a trailing PE Ratio of 25.60. .

TransCanada Corporation () gets weaker ratings this week as last week’s D drops to an F. TransCanada develops and operates energy infrastructures, including natural gas pipelines. Shares of the stock have been changing hands at an unusually rapid pace, three times the rate of the week prior. .

Enbridge () earns an F this week, falling from last week’s grade of D. Enbridge is in the business of transportation and distribution of crude oil and natural gas primarily in Canada and the United States. The stock gets F’s in Earnings Growth, Earnings Momentum and Cash Flow. Shares of the stock have been changing hands at an unusually rapid pace, twice the rate of the week prior. The trailing PE Ratio for the stock is 70.40. .

This is a rough week for StealthGas (). The company’s rating falls to D from the previous week’s C. StealthGas offers marine transport services for liquefied petroleum gas producers and users. The stock gets F’s in Earnings Growth, Earnings Revisions, Earnings Surprise and Cash Flow. .

Ultrapar Participacoes S.A. Sponsored ADR () experiences a ratings drop this week, going from last week’s D to an F. Ultrapar Participacoes is engaged in the fuel distribution and chemical businesses in Brazil. .

Gevo () is having a tough week. The company’s rating falls from a D to an F. Gevo operates as a technology development company for biobutanol. The stock gets F’s in Equity, Cash Flow and Sales Growth. As of July 11, 2014, 10.5% of outstanding Gevo shares were held short. Shares of the stock have been trading at an exceptionally rapid pace, up threefold from the week prior. .

PDC Energy () earns a D this week, moving down from last week’s grade of C. PDC Energy is an oil and gas company with drilling and production operations in the Rocky Mountains, the Appalachian Basin and Michigan. The stock gets F’s in Earnings Revisions and Cash Flow. As of July 11, 2014, 11.3% of outstanding PDC Energy shares were held short. .

This week, Chevron Corporation’s () rating worsens to an F from the company’s D rating a week ago. Chevron is an integrated energy company with operations in countries located around the world. .

This is a rough week for Kinder Morgan, Inc. Class P (). The company’s rating falls to F from the previous week’s D. Kinder Morgan is a pipeline transportation and energy storage company. The stock currently has a trailing PE Ratio of 31.10. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

A Closer Look at El Paso Pipeline Partners' Second-Quarter Results

El Paso Pipeline Partners (NYSE: EPB  ) recently delivered solid second-quarter results. The MLP reported that its distributable cash flow increased 9% over the prior year's second quarter to $141 million. Let's take a closer look at what fueled that growth as well as what investors can expect from the company going forward.

 

Ruby Pipeline under construction. Source: Kinder Morgan. 

Drilling down into the quarter
El Paso Pipeline Partners' growth in the quarter was fueled by good performance from the Colorado Interstate Gas Company as the recently completed High Plains expansion project boosted results. In addition to that, income on the quarter received a lift from three drop-down transactions from its General Partner Kinder Morgan. As previously announced, Kinder Morgan sold its interests in the Ruby Pipeline, Gulf LNG, and Young Gas Storage to El Paso Pipeline Partners for a total of $2 billion.

That being said, these positives were partially offset by previously announced rate case settlements that resulted in lower rates on Southern Natural Gas and Wyoming Interstate Pipelines. In addition to that, Wyoming Interstate Pipelines saw lower rates on recent contract renewals. Unfortunately for investors, these lower rates will work against the company and put El Paso Pipeline Partners' distribution growth on hold until after 2016, when its current expansion projects are expected to begin service.

Looking ahead
The biggest news on the quarter, and what investors needed to keep an eye on, is relating to El Paso Pipeline Partners' two proposed LNG export projects. El Paso Pipeline Partners announced that in May, the Federal Energy Regulatory Commission, or FERC, accepted a request by its recently acquired Gulf LNG Liquefaction Company to begin the environmental review process. Gulf LNG, which was one of the three assets dropped down by Kinder Morgan, could begin construction of the LNG liquefaction and export facilities as early as 2016 and begin fueling income to investors by 2019. The fact that FERC accepted the request to begin the study is a positive step forward for the company, though El Paso Pipeline Partners is still very early in the process, and the facility still might not be built.

 

Source: Kinder Morgan.

The other big project to keep an eye on in regards to El Paso Pipeline Partners' potential LNG export franchise is its Elba Liquefaction Project, which is a joint venture with Royal Dutch Shell (NYSE: RDS-A  ) (NYSE: RDS-B  ) . The partnership between El Paso Pipeline Partners and Royal Dutch Shell filed a certificate application with FERC in the first quarter to construct and operate a new natural gas liquefaction and export facility in Georgia. If approved by regulators, this project could begin production in late 2016 or early 2017.

So far, both projects remain on track. If both are complete, it would give El Paso Pipeline Partners a true LNG export franchise that should fuel strong distribution growth into the next decade.

Investor takeaway
Overall, El Paso Pipeline Partners delivered the solid quarter that investors were expecting to see. Right now the company is in a transition phase as it waits for organic growth projects to come online starting in late 2016. However, the real upside here is the LNG franchise, which continues to move closer to becoming a reality. 

Do you know this energy tax "loophole"?
El Paso Pipeline Partners continues to send gobs of cash back to investors like you each quarter. The reason it can send so much cash your way is because its taking advantage of a special tax "loophole." Its a loophole you really need to know and you can take better advantage of this profitable opportunity by grabbing our brand-new special report, "The IRS Is Daring You to Make This Investment Now!," and you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.

U.S. Markets Regain Losses from Last Week

The Dow Jones Industrial Average rebounded from last week's losses to reach near record high levels on Monday, July 14. The Dow Jones Industrial Average finished the day up 0.66% at 17,055.42, off 12.84 points from its previous high of 17,068.26 on July 3. The S&P 500 also gained, adding 0.49% to end the day at 1,977.10. The S&P 500's 2014 high is 1,985.44.

A Goldman Sachs report released on Friday, July 11 revised its outlook for the U.S. markets. In a MarketWatch discussion on Goldman Sachs' report it notes that the S&P 500 will end the year around 2,050. This outlook for the S&P 500 index was revised up from a previous report by Goldman Sachs which had the S&P 500 index ending the year at 1,900. Goldman Sachs continues to remain bullish on S&P 500 growth through the end of the year. Beyond 2014 Goldman Sachs holds its estimate basically unchanged with the S&P 500 leveling off to reach 2,100 in 2015 and 2,200 in 2016.

The day's trading was highlighted by Citigroup (C) which reported earnings that beat analysts' expectations and a settlement for $7 billion that would keep it from ongoing legal issues. The settlement for Citigroup pertains to the packaging and disclosure of certain mortgage-backed securities. The financial company's earnings beat and settlement report were received favorably by the market which pushed its stock price higher, ending the day up 3.02% at $48.42. The S&P 500 Financial sector was up 0.62%. This news comes one day ahead of significant DJIA financial company earnings reports by JPMorgan (JPM) and Goldman Sachs (GS) on July 15.

In the DJIA financial stocks Visa (V) and Goldman Sachs led the index higher. Visa was up 1.86% ending at $221.03 and Goldman Sachs was up 1.33% ending the day at $167. Laggers in the index included Merck (MRK) which was down 0.44% to $58.18 and Wal-Mart (WMT) which was down 0.35% to $76.55.

In the S&P 500 the Energy sector was up 0.89% and the Technology sector gained 0.72%. The Financial sector followed with a gain of 0.62%.

About the author:JulieYoung789Julie Young is a Chicago-based financial journalist with nine years of experience in the financial services industry. She primarily writes article publications on financial market news and economic trends. Julie holds a Master of Science degree in Finance from Boston College and a Bachelor of Science degree in Finance from the University of Arkansas.

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United Continental’s ‘Sustainable’ Improvements Lifts Airline Stocks

The market may be sinking, but airline stocks are flying after United Continental (UAL) supplied an encouraging update, helping to boost the likes of Delta Air Lines (DAL) and American Airlines (AAL), as well.

Getty Images

Following yesterday’s close, United Continental said that passenger revenue per available seat mile, or PRASM, increased by 3.5% during the second quarter, above the top-end of 3% from its previous forecast. Stifel’s Joseph DeNardi and Sawyer McKelvey explain why the market is pleased with United Continental’s update:

United's guidance for 2Q reflects an improved outlook for revenue and cost performance with consolidated PRASM expected to increase 3.5% y/y (compared to prior guidance of 1% – 3%) driven by better than expected results from the Domestic and Pacific regions. The positive trends on the Pacific are encouraging, and we expect this trend to continue into 3Q before softening somewhat in 4Q as seasonal demand softens. In addition, we believe United's domestic revenue performance was solid and a clear improvement from 1Q results. The company's outlook for unit costs in 2Q improved as well with guidance now for CASM-ex to be flat y/y. While some of the improvement to the 2Q outlook is due to certain costs shifting into the 2H, we believe a portion of the savings is the result of the company's focus on improving its cost structure and should be more sustainable.

We are increasing our 2014 estimate to $4.10 from $3.85 based primarily on an improved outlook for 2Q though we suspect there may be some upside to our outlook for 3Q and 4Q depending on unit cost trends in 2H14.

United Continental’s report came after Southwest Airlines (LUV) and American Airlines released positive reports of their own, helping to arrest the group’s slide.

Shares of United Continental have jumped 7.1% to $42.90, while American Airlines has gained 1.4% to $42.59 and Delta Air Lines has risen 0.8% to $37.26. Southwest Airlines has dipped 0.3% to $27.14.

The Fastest Growing Retirement Plan You Never Heard Of

Does a small business owner who has failed to save enough for retirement but who is averse to portfolio fluctuations describe anyone you know?

If so, a retirement plan you’ve probably never heard of offers a solution you might at least want to investigate.

Lo and behold, so-called “cash-balance plans,” seemingly out of nowhere, have surged in popularity, growing 22% vs. 1% for the quotidian 401(k) plans advisors work with.

That is according to the 2014 National Cash Balance Research Report, based on 2012 — the most recent year for which the IRS has complete data.

The reason advisors might be unfamiliar with the retirement option, despite an impressive level of growth occurring amid a languid economy, is the low base it comes off. By the end of 2012, there were fewer than 10,000 plans, compared with over half a million 401(k) plans.

Yet in terms of assets, the cash-balance plans are rapidly catching up, nearing $1 trillion ($859 billion in 2012), compared to about $4 trillion for 401(k)s.

How could such a small number of plans achieve such high assets?

Well, it probably helps some of those plans are sponsored by ginormous companies like IBM, AT&T and Boeing, with $54.9 billion, $45.2 billion and $28.1 billion in assets, respectively.

The list of large and familiar names is actually quite long, including not only blue chip corporations but white-shoe law firms (such as Sidley Austin and Skadden Arps) and well-known hospitals (like Sutter Health and Massachusetts General Hospital).

And while these firms give cash-balance plans their bulk, the report prepared by Kravitz, which designs and administers retirement plans, including more than 500 cash-balance plans, finds that the overwhelming majority of these plans — 87% — are in companies with fewer than 100 employees.

So what’s the appeal?

For large corporations like IBM, recharacterizing traditional defined benefit plans as cash-balance plans has enabled them to limit their pension liabilities. Because employees earn a fixed rate of return, companies need not constantly recalculate their liability based on fluctuating equity performance.

But for the small-business owners, often older individuals anxious about not having saved enough for retirement, age-weighted contribution rules allow one to squeeze 20 years of savings into 10.

Another key attraction, according to the report, is that employees need not reduce their take-home pay to receive employer contributions, which are not based on a “match,” as is the case in 401(k) plans.

Indeed, just about half of the over 12 million cash balance plan participants work in businesses of fewer than 10 employees, a common target of retail financial advisors.

The business owner appreciates the write-off and the ability to catch up on his own retirement savings, and that latter motivation can accrue to the benefit of workers who consequently receive well over double the average employer contribution. According to the report, the companies sponsoring 401(k) plans contribute 2.6% of pay on average, but companies offering both types of plans (96% of all companies offering cash-balance plans also offer the choice of a defined contribution plan) contribute 6.3% of pay on average.

Employees wary of fluctuating returns may also take comfort in their plan’s conservative, fixed return investments — like an ordinary bank savings account, which, upon retirement, they can annuitize or take as a lump sum.

Plan assets are invested according to a rate written into a contract that can be based on a 30-year Treasury bond, some other fixed rate, a bond rate with a floor or actual earned returns — all conservative options.

Doctors’ offices lead the pack in offering the plans; they account for 26% of plans, followed by dentists’ offices, with 12%. Financial advisory organizations make up 8% of the total.

---

Related on ThinkAdvisor:

Stocks to Watch: Lorillard, Wells Fargo, Rent-A-Center

Among the companies with shares expected to actively trade in Friday’s session are Lorillard Inc.(LO), Wells Fargo (WFC) & Co. and Rent-A-Center Inc.(RCII)

U.S. tobacco company Reynolds American Inc.(RAI) is in talks to buy smaller rival Lorillard, both companies confirmed Friday, in a multibillion-dollar deal that would create a powerful new No. 2 to industry leader Altria Group Inc.(MO) (MO). Reynolds American shares rose 1.2% to $63.00 premarket, while Lorillard shares climbed 5% to $66.25.

Wells Fargo posted a 3.8% rise in net income as a continued slowdown in the bank’s lucrative mortgage business was offset by stronger lending and lower provisions for loans that could sour. But shares edged down 0.6% to $51.49 premarket as a key measure of lending profitability declined.

Rent-A-Center warned its results for the second quarter will fall below expectations, pointing to macroeconomic pressures that are burdening its financially constrained customers. Shares fell 13% to $25.40 in premarket trading.

MGIC Investment Corp.(MTG) and Radian Group Inc.(RDN) criticized proposed standards for private-mortgage insurers seeking to do business with Fannie Mae (FNMA) and Freddie Mac (FMCC), claiming the level of liquid assets insurers would need to hold is excessive. MGIC shares slumped 13% to $8.00 premarket, while Radian shares fell 6.5% to $13.60.

J.P. Morgan (JPM) initiated coverage of Halozyme Therapeutics Inc.(HALO) with an overweight rating and a $13 price target, saying in a note to clients that the company’s proprietary pipeline appears to be garnering increased attention. Halozyme shares climbed 5.2% to $9.77 premarket.

Kofax Ltd.(KFX) said its fiscal 2014 earnings will be below expectations due to the delay in license revenue transactions. Shares slumped 18% to $6.64 premarket.

Fastenal Co.(FAST) said its second-quarter earnings rose nearly 8% as the company’s revenue continued to improve, though margins weakened slightly. Still, shares fell 2.4% to $47.01 premarket as revenue came in below analysts’ estimates.

Shopping-center owner AmREIT Inc.(AMRE) said it is evaluating a $433 million unsolicited takeover bid from Regency Centers Corp.(REG) AmREIT’s Class B shares slipped 8.7% to $20.50 premarket after jumping some 17% in Thursday trading.

Isle of Capri Casinos Inc.(ISLE) said it had eliminated several senior positions in a move expected to save about $2.5 million, excluding severance payments, according to a filing with the Securities and Exchange Commission. Shares slipped 8.1% to $9.24 premarket.

Defense and security-products maker Arotech Corp.(ARTX) said it plans to offer an unspecified amount of its shares in a public offering. Arotech recently had about 21 million shares outstanding, according to FactSet. Shares fell 6.9% to $3.50 premarket.

Aspen Insurance Holdings Ltd.(AHL) said it expects second-quarter operating earnings above Wall Street projections, citing “the continued excellent performance across our businesses.”

Chevron Corp.(CVX) said it expects its second-quarter production to decline slightly from the year-earlier period as lower output abroad offsets a modest increase domestically.

Cosi Inc.(COSI) named Yum Brands Inc.(YUM) veteran Scott Carlock as the chief financial officer of the struggling sandwich chain.

Cloud-based software provider E2open Inc.'s(EOPN) loss widened in its fiscal first quarter as operating expenses continued to rise.

NGL Energy Partners LP(NGL), which bought oil-storage company TransMontaigne Inc. from Morgan Stanley (MS) (MS) last week, said it is offering to buy the outstanding units of TransMontaigne Partners LP(TLP) (TLP) in a one-for-one exchange of common units.

Occidental Petroleum Corp.(OXY) named company veteran Todd A. Stevens as the future chief executive of the California oil-and-gas operations it plans to spin off into a separate, publicly traded company and William E. Albrecht as executive chairman.

Vishay Intertechnology Inc.(VSH) said that it has reached a deal to buy Taiwan’s Capella Microsystems Inc. for about $205 million, as it looks to broaden its optical sensors business.

Crushed No More: King Digital Jumps Above IPO Price

After more than three months on the public markets, King Digital Entertainment (KING) is finally trading above its IPO price.

The maker of the popular Candy Crush Saga jumped as much as 6.4% to $23.27 on Monday, trading above its $22.50 listing price in late March. The stock, up more than 50% from its mid-May low, got an extra boost Monday from an upgrade by PiperJaffray analyst Michael Olson.

Evidence is mounting that King Digital is more than just a one-hit wonder, he said, as the company diversifies its gaming options. Candy Crush delivered about 80% of King’s gross bookings last year. King Digital has conceded that the game’s growth has likely peaked.

Mr. Olson lifted his rating to overweight from neutral and boosted his price target to $28 from $19. His bullish thesis for King Digital is Candy Crush will hook players and prompt them to spend money on other games.

“The reason we have had a neutral rating on the stock to date involves many of the same hesitations that have been surfaced by potential investors, most notably concentration risk,” he said. “With both Pet Rescue and Farm Heroes each maintaining a top 15 grossing iPhone rank over the last 6+ months, with the vast majority of that time spent in the top 10 for each title, we believe it is becoming increasingly clear that King is successfully diversifying beyond Candy Crush.”

Mr. Olson found that King Digital had an average of 5.3 games in Apple (AAPL) iTunes’ top 200 selling games through the second quarter, up from 4.9 at the end of the first quarter.

PiperJaffray

In the top 20, King had 3.1 games, up from 2.9.

PiperJaffray

King  tumbled 16% in its trading debut in late March, branding it at the time the worst debut for an initial public offering this year, as investors wondered whether King could sustain its growth in the hit-driven mobile-gaming business. The stock first passed the $22.50 mark on July 2, gave back some of the gains the next day and then marched higher on Monday.

Still, King has generated positive cash flow from its operations for each of the past nine years. It has a history of keeping costs under control. And last year it generated twice the amount of sales as Zynga (ZNGA), with only about 1/3 the amount of staff as its rival.

With the stock finally trading above its IPO price, perhaps investors are starting to warm to the idea that the company may have some staying power.

Did EDAP TMS S.A. Just Start a Selling Avalanche? (EDAP)

Last week, yours truly posed the unpopular (though largely ignored) premise that EDAP TMS S.A. (NASDAQ:EDAP) was poised to tumble. It wasn't anything personal, nor was it a judgment call on the merits of the company. It was simply a trading-based call, observing how the rally EDAP was enjoying at the time appeared to be running out of gas, and there was no floor to halt any pullback.

Care to guess what happened in the meantime? Yes, EDAP TMS S.A. began to deteriorate, but as of today may have passed the point of no return.

The nearby chart tells the tale. The bulls basically continued to fight a decent fight for a couple more days... a feat made even more impressive by the fact that the market environment was decidedly bearish on Monday and Tuesday of this week. The weight of the gain achieved in late June, however, today has proven to be too great to hold up. Despite the market's modest bullishness on Wednesday, the sellers are knocking on the door of another lower low, and though we saw intraday rebound efforts on Monday and Tuesday, we're not seeing such interest today. The bullish effort appears to be completely out of gas.

Given the backstory behind the big runup, it's not a tough premise to digest. When EDAP shares started to heat up in late May, it was on the heels of news that the company was close to winning the FDA's approval of its Ablatherm-HIFU system for use in the United States. As is so often the case with biopharma and biotechnologies, however, the "buy the rumor, sell the news" axiom holds true - everybody who was looking to speculate on an approval has already rushed in, fearing missing out on the bullish knee-jerk response to the official news of an approval. The irony is, there may be few buyers left to bid the stock up on the news. Most everyone who wanted in has already got in, and it may even be the case that they're not even waiting for the news to come out before starting the profit taking. Welcome to the world of biotech stocks, which are more of a psychological chess match than the successful prediction of binary events.

Whatever the reason, take the chart at face value - they never lie, and their hints are rarely wrong. Today's pullback from that EDAP TMS S.A. is a major red flag, and there's a ton of room for shares to give back before finding a floor.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.

Walgreen Co. Or CVS Caremark: Which Would You Rather?

The business of chain drugstores has been a veritable model for how just about any retail business should envision itself.

Over the past 75 years, chain drugstores have seen staggeringly consistent growth while becoming an increasingly pervasive part of America's cultural landscape. With all the success this market has seen in the last three-qarters of a century, there is no reason to expect it to slow down anytime soon.

Two of the most prolific leaders in the drugstore space are CVS Caremark (NYSE: CVS) and Walgreen Co. (NYSE: WAG). From a distance, these two powerhouses are neck-and-neck in the stock game, but upon closer examination one may actually be a better overall fit for an investment portfolio.

So which would you rather add to yours…Walgreen Co. or CVS Caremark?

Related: Amazon Or Alibaba: Which Would You Rather?

There is a lot of similarity between these two companies, to the extent that they almost look like corporate fraternal twins. Both companies have an absolutely enormous, nearly unavoidable presence across the country -- and both are adjusting well to the changes in the nation’s healthcare infrastructure that are being implemented through Affordable Care.

They are also both in the planning stages of onsite primary-care facilities that would ideally be staffed with both a general practitioner and a physician’s assistant. According to the proposed model this would give customers access to basic but professional health care within the pharmacy, which would obviously increase the level of convenience exponentially.

Walgreen’s has more than 8,000 stores in the United States and Puerto Rico -- which makes it the biggest chain in terms of revenue -- and the stock’s performance has almost always been indicative of the company’s dominance in the market. Experts are predicting retail revenue to hit the $75 billion mark by the end of 2014, which would equate to growth of roughly five percent over 2013 with earnings per share expected to be up by more than 30 percent.

Of course, the proof is in the pudding and only time will tell. But while the company has expanded its presence and coughed up nearly $9 billion on retail and wholesale distribution acquisitions since 2012, the question remains whether or not it will be able to continue to ebb and flow so smoothly with the ever-changing healthcare picture in the US.

Then there is the runner-up in the retail drugstore race, CVS Caremark. But make no mistake, “runner-up” is a fairly loose term here, since the company’s 7,660 stores in the United States, Puerto Rico and Brazil make it a very close runner-up to Walgreen Co., that is getting closer all the time.

Despite their second-place position in the retail sector, CVS does edge out Walgreen’s as the country’s biggest pharmacy healthcare provider, and they have the stock numbers to prove it. The brand’s expansive pharmacy benefit management services accounted for fully $126 billion, or nearly 55 percent, of its sales in 2013.

They also operate the most extensive network of retail health clinics in the country with more than 800 currently open and plans for an additional 150 by the end of 2014 and a total of 1,500 by the close of 2017.

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Posted-In: drugstore drugstore chain healthcare medicine Pharmaceutical pharmacyMarkets Best of Benzinga

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Most Popular 5 Top Dow Stocks With The Most Upside Potential Alcoa Earnings Preview: A Sign Of Earnings To Come? Boeing Train Derails; Fuselages Dumped In River, Production Disruptions Likely Stocks To Watch For July 7, 2014 #PreMarket Primer: Monday, July 7: Earnings Season Gets Underway Whole Foods Shares Spike Briefly On Apparent Rumor Revival Related Articles (CVS + WAG) Walgreen Co. Or CVS Caremark: Which Would You Rather? Dow Trades Above 17,000 While S&P 500 Inches Closer To 2,000 Dow Hits 17,000 On Jobs Report; Walgreen Same-Store-Sales Surge 7.5% Walgreen Shares Up On June Sales (WAG) UPDATE: Walgreen Same-Store Sales Rise 7.5% In June Markets Keep On Rewarding Stocks Despite Less Than Economic And Earnings Fundamentals - Economic Highlights Around the Web, We're Loving...

ON THE MARKET - On Going Parabolic

Pre-market –Monday – 7-7-2014

"The just price is the price established by the 'common estimation' [17] of buyers and sellers."

~ Saint Thomas Aquinas ~

1225 -1274

Dr. John L. Faessel

ON THE MARKET

Commentary and Insights

Quote's of the day

"Experience has shown that even under the best forms of government

those entrusted with power have, in time, and by slow operations,

perverted into tyranny."

~ Thomas Jefferson ~

&

"So sue me"

~ Obama ~

Re his use of executive actions to act without Congress

&

"We've unmasked madmen wielding scepters"

~ Sherlock Holmes ~

~~~~~~

·The stock market is advancing on a broad front - but, but, but …

·Technical picture suggests higher prices - but, but, but …

·The unemployment number of 6.1% was exceptional - but, but, but …

·The world's central banks have it all figured out - but, but, but ...

·Everyone's bullish; happy, happy - but, but, but ...

MARKET

Going Parabolic

Momentum rules: The long term trend remains UP and the short term trend is UP. The McClellan Oscillator (my favorite overbought and oversold indicator) remains in neutral where it has been since late January. (I believe this neutral stance, neither overbought or oversold, caused much by healthy rotation has contributed to the outstanding advance in the market.)

However

Stock markets are extended and there are a declining number of Dow components participating in the uptrend and the indicator now demonstrates a fall below its 15-day moving average. The Nasdaq 100 Index is making new multi-year bull marklet highs, levels however the average component stock in that index is down 7% from its trailing 52-week high.

(SPX) Stochastics are overbought with the SlowK at 93.74 and the Fast K at 98.73.

On Valuations

Scary Comparisons

Click hyperlinks for charts

1.Thursday's forward P/E on the S& P 500 (SPX) moved up to 15.68 from a recent low of 14.4 on February 3. That's a new high for the bull market, and the highest since June 20, 2005.

2.The Shiller P/E Ratio was only higher in 1929, 2000 and 2007. (price to earnings ratio based on average inflation-adjusted earnings from the previous 10 years)

3.The total market capitalization to GDP ratio.. ( "probably the best single measure of where valuations stand at any given moment" - Warren Buffet) was only higher in 2000

4.Tobin's Q Ratio (the ratio of the market's price to replacement costs)was only higher in 2000

Further distorting valuationsand stock "prices " is that since March 2009 the bull market in the S&P 500 (SPX) has been marked by corporations massively buying back their shares and paying out dividends. From Q1-2009 through Q1-2014, S&P 500 companies repurchased $1.9 trillion of their shares and paid out $1.3 trillion in dividends. During the Q1 of this year, buybacks totaled $637 billion at an annual rate, nearly matching the previous record high during Q3-2007.

A Notable quote: "Based on valuation measures most reliably associated with actual subsequent market returns, we presently estimate negative total returns for the S&P 500 on every horizon of 7 years and less, with 10-year nominal total returns averaging just 1.9% annually. I should note that in real-time, the same valuation approach allowed us to identify the 2000 and 2007 extremes, provided latitude for us to shift to a constructive stance near the start of the intervening bull market in 2003, and indicated the shift to undervaluation in late 2008 and 2009." (see Setting the Record Straight). John P. Hussman, Ph.D.
June 2, 2014

Lots on Unemployment

The U.S. created 288,000 jobs last month and the unemployment rate fell to 6.1% from 6.3%,. That's the lowest jobless rate since September 2008. Analysts had expected an increase of 210,000.

However:

There's a "Jobs Gap"! Each month, The Hamilton Project examines the "jobs gap," which is the number of jobs that the U.S. economy needs to create in order to return to pre-recession employment levels while also absorbing the people who enter the labor force each month. As of the end of June 2014, our nation faces a jobs gap of 6.8 million jobs.

If the economy adds about 208,000 jobs per month, which was the average monthly rate for the best year of job creation in the 2000s, then it will take until July 2018 to close the jobs gap. Given a more optimistic rate of 321,000 jobs per month, which was the average monthly rate of the best year of job creation in the 1990s, the economy will reach pre-recession employment levels by September 2016.

While the U.S. created 288,000 jobs the broader unemployment measure, U-6, barely budged, at 12.4%. The labor force participation rate remained stuck at a 36-year low of 62.8%. The number of people working part-time for economic reasons rose by 275,000. Part-time work jumps in June by 799,000 - the largest one-month gain since January 1994. (The standard deviation is 287,000) At the same time, there was a 523,000-person drop in full-time workers, the first decline since October.

Employed persons at work part time:

·Part time involuntarily +275k

·Because hours cut back +72k

·Because that's all they could find +111k

·Part time voluntarily +840k

So, if we really created 288k jobs. And 275k were made involuntarily part-time, then this suggests that there are still way more candidates than there are openings.

The Economic Policy Institute economist Ms. Heidi Shierholz estimates that "even if we saw June's rate of job growth every month from here on out, we still wouldn't get back to health in the labor market for another two and a half years." … Link here for missing worker detail.

Re; "Missing Workers", potential workers who, because of weak job opportunities, are neither employed nor actively seeking a job. In other words, these are people who would be either working or looking for work if job opportunities were significantly stronger.

As of June 2014 5.98 mil (*roughly half of that number are of prime working age. Unemployment rate if you add those missing workers back into the labor force: 9.6%. Compare that number to the official rate of 6.1%.

A Notable quote:

"Curb your enthusiasm … the year-over-year acceleration is still small — arguing that this has been catch-up. Hours worked and average hourly earnings do not imply much momentum for the economy … the household report tells us that more than all the net job gains this month were part-time jobs, as full-time jobs dropped by 700,000."

Robert Brusca, Chief economist at FAO Economics

A culprit; Remember ObamaCare aka the Affordable Care Act?Small employers are opting out to get around the 50-person work requirement by replacing full-time workers with part-timers. Recall the lefties said that wouldn't happen… Really?

Earnings expectations are likewise plunging In Europe.

The estimates for 2014 and 2015 are down 7.0% and 5.0% ytd

Global Debt Running Amuck

In the annual report of the Bank for International Settlements, [BIS](the bank fo

Gold Option Trade – Will Gold Continue to Consolidate?

Until recently, the world has forgotten about gold and gold futures prices it would seem. A few years ago, all we heard about was gold and silver futures making new highs on the back of the Federal Reserve's constant money printing schemes. However, after a dramatic selloff the world of precious metals it became very quiet.

Gold prices have been in a giant basing or consolidation pattern for more than one year. As can clearly be seen below, gold futures prices have traded in a range between roughly 1,175 and 1,430 since June of 2013.

The past few weeks we have heard more about gold prices as we have seen a five week rally since late May. I would also draw your attention to the fact that gold futures also made a slightly higher low which is typically a bullish signal.

At this point in time, it appears quite likely that a possible test of the upper end of the channel is possible in the next few weeks / months. If price can push above 1,430 on the spot gold futures price a breakout could transpire that could see $150 or more added to the spot gold price.

Clearly there are a variety of ways that a trader could consider higher prices in gold futures. However, a basic option strategy can pay handsome rewards that will profit from a continued consolidation. The trade strategy is profitable as long as price stays within a range for a specified period of time. Ultimately this type of trade strategy involves the use of options and capitalizes on the passage of time.

The strategy is called an Iron Condor Strategy, however in order to make this trade worth while we would consider widening out the strikes to increase our profitability while simultaneously increasing our overall risk per spread. Consider the chart of GLD below which has highlighted the price range that would be profitable to the August monthly option expiration on August 15th.

As long as price stays in the range shown above, the GLD August Iron Condor Spread would be profitable. Clearly this strategy involves patience and the expectation that gold prices will continue to consolidate. This trade has the profit potential of $37 per spread, or a total potential return based on maximum possible risk of 13.62%. The probability based on today's implied volatility in GLD options for this spread to be profitable at expiration (August 15) is roughly 80%.

Our new option service specializes in identifying these types of consolidation setups and helps investors capitalize on consolidating chart patterns, volatility collapse, and profiting from the passage of time. And if you Advanced options trades are not your thing, we also provide Simple options where we buy either a call or put option based on the SP500 and VIX. The nice thing about buying calls and puts is that you can trade with an account as little as $2,500.

If You Want Daily Options Trades, Join Technical Traders Options Alerts: www.TheTechnicalTraders.com/options

Chris Vermeulen

Why Bank of America Corp Shares Could Fly 15%

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Bank of America  (NYSE: BAC  ) gained 1.6% today after Deutsche Bank upgraded the banking gorilla from hold to buy.

So what: Along with the upgrade, analyst Matt O'Connor boosted his price target to $18 (from $16.50), representing about 15% worth of upside to yesterday's close. So while momentum traders might be turned off by Bank of America's price weakness in recent months, O'Connor's call could reflect a sense on Wall Street that the concerns surrounding its growth trajectory are becoming overblown.

Now what: According to Deutsche, Bank of America's risk/reward trade-off is rather attractive at this point. "We think the most meaningful negative catalysts have been identified and largely priced in," said O'Connor. "From here, Bank of America is well-levered to a potential pickup in capital markets revenues, higher interest rates, and an improving US economy." When you couple that upbeat outlook with Bank of America's cheapish price-to-book of 0.8, it's tough to disagree with Deutsche's bullishness. 

Bank of America + Apple? This device makes it possible.
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its destined to change everything from banking to health care. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here! 

Why the Best of 2014 Is Yet to Come

U.S. stock markets are taking a short break today for the Independence Day holiday and it gives us an opportune moment to look at where markets have been this year and where markets are going. 

So far, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) and S&P 500 (SNPINDEX: ^GSPC  ) have returned 8.5% and 4.2% respectively, but that hasn't been because of a booming economy. In fact, the economy shrunk in the first quarter, which means investors are pricing in growth in the second half of the year when the economy is expected to pick up steam. 

^DJITR data by YCharts

Where we've been
The year 2013 was highlighted by a fast rising stock market, but that was driven by optimism for an improving economic future. That confidence and optimism was put to the test in the first quarter when markets slumped to start the year and the economy shrank 2.9%.

Despite the poor numbers, everyone from consumers to the Federal Reserve seemed to see better days ahead for the rest of 2014. The Conference Board's Consumer Confidence Index hit 85.2 in June, which is the highest level since January 2008 when the economy started to implode. The Institute for Supply Management said its non-manufacturing index was 56.0 in June, indicating economic expansion, and Markit's service-sector purchasing managers index was 61.0 in June, the highest since October 2009.

Economists are bullish on the economy for the second half of 2014.

So, the first half of 2014 has been marked by some negative economic data, but high confidence has continued. One reason for that may be a steadily falling unemployment rate, which dropped to 6.1% in June and consumers are confident they can drive growth in the future. 

What to watch in the second half of 2014
With the fairly weak GDP data but high confidence in mind, I look at the second half of 2014 as being when the rubber hits the road. If economic growth doesn't pick up as expected, markets could retreat. And with so much optimism priced in, it's time for the economy to start proving that the rally over the past 18 months is built on a solid foundation.

But that's where I think we'll start seeing some positive trends. First, the unemployment rate is finally low enough that power will begin shifting to workers, who may be able to demand higher wages than they could  have when even finding a job was difficult. If that happens, people will have more money to spend and the economic engine can get fired up again.

If spending improves, companies will have an incentive to put the billions of dollars on corporate balance sheets to work by investing in future growth. Growth could be a reinforcing loop that feeds on itself.

Foolish bottom line
Considering the recent data surrounding confidence and employment, I think the economy will begin growing again. The first quarter was somewhat of an aberration because of bad weather throughout the country that kept consumers home. 

On an economic front, the best is yet to come for the U.S. Whether that translates to continued record highs for the Dow Jones Industrial Average and S&P 500 is another story. Only time will tell if an improving economy is enough to keep stocks moving higher in the second half of the year.

How you can beat the market
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

USD/JPY Surges After U.S. Economic Releases

Thursday morning's condensed list of economic data releases strengthened the dollar, influencing a 45 pip increase in the USD/JPY currency pair.

The multiple U.S. economic releases consisting of: non-farm payroll beat consensus by 73,000, trade balance beat by $6 billion, unemployment beat by two basis points, initial jobless 2,000 higher than consensus and continuous jobless claims 19,000 higher than consensus.

The multiple indicators were reported Thursday instead of Friday due to the market being closed on July 4.

The pair recovered from its June 30 low, caused by Japan's June 26 economic data releases consisting of: CPI year-over-year release increasing by 0.3 percent from its previous 3.4 percent, a 9.1 percent increase in retail sales for the month of May and a 0.1 percent decrease in jobless rate.

Analyst forecast a significant gain for the pair in the near term.

Median of consensus for the given terms:
1 W:102.36
1 M: 102.87
6 M: 106.00
1 Y: 110.00

Posted-In: News Forex Econ #s Markets

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Few strings attached to money for GM victims

  Feinberg's payout plan for GM victims NEW YORK (CNNMoney) There's no such thing as free money, but the compensation General Motors is offering victims comes pretty close.

GM has said it would pay more than $1 million to the families of those who died as a result of a defect in its cars. Victims who suffered injuries are also eligible for compensation.

Those who take the money have to give up their right to sue GM.

But the money will likely be tax free, like all personal injury awards. The offer could also work out to be cheaper and less of a hassle when compared to hiring a lawyer and going to court.

Of course, that doesn't mean there's no work at all for claimants. Kenneth Feinberg, the attorney hired by GM (GM) to administer the program, doesn't simply hand over a check to those seeking compensation.

Victims must file a claim with documentation that proves their car crash was caused by the faulty ignition switch. A police report or computer data captured by the vehicle's event data recorder are applicable. Medical records are required for injury claims.

In the case of a death claim, a family member must submit documentation showing past income so that the award can be based on lost future earnings.

It's not necessary to hire an attorney under Feinberg's plan. Lawyers typically receive about one-third of a settlement, said Carl Tobias, a law professor at the University of Richmond.

But those who want to pursue their case in court will have no choice but to hire an attorney and also take the risk of losing.

  How GM will pay its victims

Lawsuits also mean people have to make themselves available for deposition in court, hire experts, and disclose numerous documents, said Robert Carey, an attorney who serves as co-counsel of a suit filed against GM over the botched recall.. The cases can also go on for a long time if the automaker appeals a decision, or worse, files a motion to dismiss.

"It's extremely costly and time consuming. And these are difficult cases," he said.

Carey said that the first step for all victims and their families is to file a claim with Feinberg.

If the victims don't like the money offered, only then should they consider suing GM.

Iron Mountain: So You Got Yourself a REIT

Last week, the IRS gave Iron Mountain (IRM) what it wanted: REIT status. Since then, the storage company’s shares have jumped 18%–and JPMorgan thinks they could head higher.

AP

JPMorgan’s Andrew Steinerman and Jeffrey Volshteyn explain why they now rate Iron Mountain Overweight:

Iron Mountain announced that it achieved IRS approval for REIT status retroactively as of January 1, 2014, completing a process that began in 2012. Iron Mountain stock leaped 20% on Thursday due to the large cash tax savings and the resulting increased dividend. We still see continued upside due to valuation as yield-oriented and REIT investors are attracted to Iron Mountain. While we recognize that Iron Mountain will not prospectively trade at a full real estate valuation (due to the services side of their business), the REIT structure should help highlight the sizable valuation gap that exists today and should narrow over time.

Iron Mountain is much cheaper than the industrial, self storage and data center REITs that carry dividend yields of 3.6%, 3.3% and 4.6% respectively. We believe the dividend yields of prison stocks (also non-traditional REITs), which have dividend yields of 6.3%, provide downside protection to Iron Mountain.

Prison REIT Corrections Corp of America (CXW) yields 6.2% and trades at 24.9 times earnings, while Geo Group (GEO) yields 6.4% on a P-E ratio of 20.8 times.

Shares of Iron Mountain have, while Correction Corp of America has and Geo Group has.