Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Aruba Networks (NASDAQ: ARUN ) have plunged today by as much as 30% after the company reported earnings held back by intensifying competition.
So what: Revenue in the quarter came in at $147.1 million, which translated into non-GAAP earnings per share of $0.11. Earlier this month, Aruba slashed its guidance, and the figures were in line with the reduced forecast. Competitive fears also further rattled investors.
Now what: CEO Dominic Orr attributed weakness to a "heightened level of competition and bundling strategy" from Aruba's largest competitor, Cisco Systems, along with a tough macro environment. The pressure is leading to order delays from Aruba's customers, as Cisco aggressively bundles and cuts prices. Cisco's own earnings release came in better than expected, suggesting that it's seeing success in stealing market share from competitors. Aruba has seen nearly a dozen analyst downgrades in the wake of the results.
Hot Prefered Stocks To Invest In 2014: Pyng Medical Corp. (PYT.V)
Pyng Medical Corp., a medical device company, discovers, develops, manufactures, and markets a suite of trauma and resuscitation products. The company�s products include FAST1, an intraosseous infusion system that provides lifesaving vascular access to enable the administration of drugs, medications, fluids, and blood to patients that require emergency treatment, as well as used in the sternum during adult and adolescent emergency intervention. It also offers FASTx, a sternal intraosseous device that delivers emergency fluids and medications into the vascular system through the bone marrow of the manubrium; MAT Tourniquet that saves limbs and lives by providing complete arterial occlusion with one-handed operation; and T-POD Pelvic Stabilizer for the treatment of pelvic trauma, pain, and bleed-out while preventing loss of life. In addition, the company provides CRIC Cricothyroidotomy System that incorporates necessary instruments, including a depth-controlled scalpel�for establishing an airway in civilian or military casualties suffering from facial, jaw, and upper-neck injuries. It sells its products directly and through distribution partners to military, hospitals, emergency medical services, government agencies, and law enforcement customers. Pyng Medical Corp. is headquartered in Richmond, Canada.
Hot Prefered Stocks To Invest In 2014: National CineMedia Inc.(NCMI)
National CineMedia, Inc., through its subsidiaries, operates a digital in-theatre network in North America. It develops, produces, sells, and distributes various versions of a branded, pre-feature entertainment, and advertising program called ?FirstLook? on theatre screens and advertising programming on its lobby entertainment network; and sells various forms of advertising and promotions in theatre lobbies. The company distributes Fathom business and consumer entertainment events through digital content network and live digital broadcast network utilizing its proprietary digital content software. It also facilitates business meetings, church services, and corporate marketing/communication events in the movie theatres throughout its theatre network; and distributes entertainment programming products, which include live and pre-recorded concerts, opera, symphony, concert and DVD product releases, theatrical premieres, Broadway plays, and other music events, as well as live sports and other special events. In addition, the company provides its services to third-party theatre circuits through network affiliate agreements. As of August 4, 2011, its advertising network had approximately 18,100 digital screens. The company was founded in 2005 and is headquartered in Centennial, Colorado.
Advisors' Opinion:- [By Jeff Reeves]
National CineMedia (NASDAQ: NCMI) is a massive in-theatre advertising network across North America, serving ads on screen and throughout cinema properties that reach almost 18,000 movie screens.
Current Yield: 5% (80 cents a share annually)
Dividend History: In June 2010, the company paid 18 cents a share for its quarterly dividend. This year, CineMedia will pay 20 cents a share. That’s an 11% dividend increase.
Dividend Outlook: According to Bloomberg, National CineMedia has a three-year expected dividend growth rate of 10.3%.
Recent Performance: The biggest flaw in NCMI is its recent performance. The company recently swung to a quarterly loss in its latest earnings report, and shares are off almost 20% year-to-date in 2011.
Strong Outlook for Shares: Though a bit risky due to its recent earnings and stock performance, NCMI may be a strong growth buy as advertisers return to the screen and movie-goers head back to the theater. Revenue increased 9% from 2009 to 2010, and is set to grow 9% again this year. As we enter the blockbuster summer movie season, NCMI may be a good buy before a rebound.
Best Mid Cap Stocks For 2014: Enbridge Inc Com Npv (ENB.TO)
Enbridge Inc. transports and distributes crude oil and natural gas primarily in North America. It operates crude oil and liquids transportation system comprising approximately 24,738 kilometers of crude pipeline. The company also engages in natural gas gathering, transmission, and midstream businesses, as well as power transmission; and provides liquids and natural gas contract storage services. In addition, it owns and operates natural gas distribution pipelines; provides distribution services in Ontario, Quebec, and New Brunswick in Canada, as well as in New York State; and operates offshore pipelines comprising approximately 2,400 kilometers that transport offshore deepwater natural gas production in the Gulf of Mexico. Further, Enbridge Inc. holds interests in a portfolio of renewable energy projects comprising 8 wind farms with 1,017 megawatts (MW) capacity, 4 solar energy operations consisting of 150 MW capacity, and a geothermal project with 23 MW capacity. The comp any was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is based in Calgary, Canada.
Hot Prefered Stocks To Invest In 2014: Aruma Resources Limited(AAJ.AX)
Aruma Resources Limited engages in the exploration of mineral properties in Australia. It primarily explores for gold. The company has eight prospective project areas that include tenements under application covering an area of approximately 1000km2 in the Eastern Goldfields region of Western Australia. Its principal project includes the Glandore project covering 41km2 of contiguous ground located to the east of Kalgoorlie Boulder in Western Australia. The company was incorporated in 2010 and is based in Nedlands, Australia. Aruma Resources Limited is a subsidiary of Hemisphere Resources Limited.
Hot Prefered Stocks To Invest In 2014: Lara Exploration Ltd. (LRA.V)
Lara Exploration Ltd., an exploration stage company, engages in the identification, acquisition, and exploration of precious and base metal deposits primarily in South America. The company primarily explores for potash, phosphates, nickel, gold, tin, copper, iron, manganese, graphite, lead, and zinc. It holds interests in various mineral properties located in Brazil, Colombia, and Peru, as well as in China. The company was incorporated in 2003 and is headquartered in Vancouver, Canada.
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