Insight & Advice

Cramer's 'Mad Money' Recap: Time to Change Your Strategy

twocents@thestreet.com (Scott Rutt) — Thu, 20 Jun 2013 00:21 GMT

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NEW YORK (TheStreet) -- Buying stocks just because they have big dividends is over, Jim Cramer told his "Mad Money" TV show viewers Wednesday after the market reacted to the latest musings from the Federal Reserve.

Cramer said what will work best from here on out will be those companies that do better as the economy does better. ...

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Cramer's 6 Stocks in 60 Seconds: KT GLW BBRY SODA V CLF (Update 1)

twocents@thestreet.com (Bret Kenwell) — Wed, 19 Jun 2013 21:07 GMT

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NEW YORK (TheStreet) -- Here's what Jim Cramer had to say on CNBC's "Squawk On The Street" Wednesday. (Updates from 10:30 a.m. ET with closing information.) Goldman Sachs upgraded Tanger Factory Outlet. Cramer reminded investors that real estate investment trusts like Tanger "have been awful" on Federal Reserve announcement days. SKT closed down 3.1% to $33.39. Corning is loved by retail investors at the moment, but Cramer remains pessimistic. "I'll believe it when it I see it," he said. GLW fell 1.6% to $14.95. Phone maker BlackBerry was downgraded by Bernstein. Cramer concurs, adding, "For them to say sell, you should sell." BBRY dropped 4.4% to $14.18. SodaStream International has been doing well but with a downgrade from William Blair, "enough is enough," Cramer said. SODA fell 2.8% to $68.57. Cramer said Visa, along with MasterCard, are among his favorite momentum names and will be going higher. V closed at $182.63, down 1%. Cramer refused to take a position on Cliffs Natural Resources, citing the extreme up-and-down price action of the stock. CLF was nearly 1% lower at $18.47.

To sign up for Jim Cramer's free Booyah! newsletter, with all of his latest articles and videos, please click here. ...

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Facebook Leading Silicon Valley Brain Drain

twocents@thestreet.com (Rocco Pendola) — Wed, 19 Jun 2013 18:57 GMT

NEW YORK (TheStreet) -- Make no mistake ... Mark Zuckerberg is clearly out of his league as Facebook CEO and head visionary. I was wrong about the guy (and maybe the stock, though I still think it goes irrationally higher, sort of like Netflix ).

Can Zuck come back? Anything's possible, but, he needs Sheryl Sandberg (or somebody) to Lean In on more Facebook brainstorming sessions and fewer activist appointments. Sandberg, as COO, appeared to be the rock that kept Zuckerberg focused. She has either gone AWOL -- thanks to her celebrity (?) -- or there's just no helping a young CEO in over his head.

With the exception of folks deep inside, nobody knows what's really going on at Facebook, however, it's clear Zuckerberg conceived and built something great before hitting a creative wall. If he's the best Silicon Valley has to offer, innovation did die with Steve Jobs and only has a fighting chance thanks to Elon Musk. ...

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Quick Take: Mulling Bernanke's Replacement

twocents@thestreet.com (Bret Kenwell) — Wed, 19 Jun 2013 17:32 GMT

NEW YORK (TheStreet) -- TheStreet's Joya Dass spoke to Matthew Cheslock from Virtu Financial about what's expected from Chairman Ben Bernanke regarding this afternoon's Federal Reserve meeting. Cheslock said he's not really expecting a whole lot from Bernanke. He said he thinks the Fed will stick to the plan and likely continue quantitative easing through the end of 2013 before any tapering would begin. Although the unemployment rate is much improved from its state in 2009, the Fed has continued to pump more money into the economy. There has been talk Bernanke will not be re-appointed Fed chairman after his second term is over. Asked about a possible replacement, Cheslock admitted, "I have no idea." He added about the choices, "Will it be political? Will it be financial? There's a lot to talk about." Cheslock added that if there aren't enough dovish comments in today's Fed press release, the markets could be in for a big surprise. ...

Quick Take: Platinum, Palladium Take a Hit

twocents@thestreet.com (Bret Kenwell) — Wed, 19 Jun 2013 17:21 GMT

NEW YORK (TheStreet) -- Will Rhind, head of U.S. Operations at ETF Securities, discussed what has caused some of the recent moves in platinum and palladium with TheStreet's Joe Deaux on Wednesday. According to Rhind, the metals are facing a large headwind from the impact of the U.S. dollar and the South African rand. South Africa is the world's largest producer of platinum and second-largest producer of palladium, meaning that all of their income is priced in rands. However, when the metals go to the international markets, it's priced in dollars. This results in the miners receiving more rand than they typically would because of the dollar strength, which is good for the business. But Rhind says this is taking a its toll on the price of the metal for investors at home, as it continues to head lower. However, he argued that the fundamentals should continue to shine for the metals, even if the current price does not. Demand is currently higher than the given supply and he expects this to last through at least 2013. While slowdowns in emerging markets remain a concern to many investors, especially in nations such as China, Russia and Brazil, Rhind says that platinum and palladium should be fine, pending any huge currency swoons or maco events. "At some point the fundamentals should speak for themselves," he added, "the demand situation right now is pretty attractive." ...

Forget China, Africa Is Next Growth Wave

twocents@thestreet.com (Oliver Pursche ) — Wed, 19 Jun 2013 16:33 GMT

NEW YORK (TheStreet) -- I recently attended the Ernst & Young World Entrepreneur Forum in Monaco, where nearly 1,000 entrepreneurs and business leaders gathered to share their views and discuss where they are finding the best investment opportunities for their businesses.

Overwhelmingly, the recurring theme was Africa -- not the politically unstable, war-torn North Africa that is in the news daily, but sub-Saharan Africa.

From those discussions and my subsequent research, I believe the continent is roughly where China was 15 years ago on the development and investment scale. ...

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Dicker: Oil Is the New Gold

twocents@thestreet.com (Daniel Dicker) — Wed, 19 Jun 2013 16:06 GMT

NEW YORK (TheStreet) -- I was talking to Jim Cramer about oil and its indefatigable price strength.

No matter the news from the Fed or the motion in the stock market, it seems that oil continues to plod along, slowly going higher -- with West Texas Intermediate Crude now trading $98.50 a barrel and Brent Crude at more than $106 a barrel.

Jim asked what continues to drive oil higher, particularly in the face of bearish supply fundamentals. ...

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Quick Take: Look to High-Yield U.S. Corporate Debt

twocents@thestreet.com (Bret Kenwell) — Wed, 19 Jun 2013 16:05 GMT

NEW YORK (TheStreet) -- TheStreet's Gregg Greenberg discussed the recent move in bonds and where investors can still find value with James Kochan, chief fixed-income strategest at Well Fargo Advantage Funds. According to Kochan, the spike in bond yields does not indicate the start of a bear market. He said the 10-year Treasury yields are in a "normal" range and are still relatively low, historically speaking. Despite outcries about possible manipulation by the Federal Reserve, Kochan doesn't necessarily agree. He said that while the Fed certainly has a "pronounced influence" on mortgage-backed securities, it has less of an influence in Treasuries. More of an influence has been foreign buyers of U.S. debt -- they've been doing more selling than buying, he said. Greenberg pointed out the instability currently seen in emerging markets. Kochan said he's not sure what people see there. "You're not getting paid all that much" to own emerging market debt, relative to other areas of fixed income, he added. He thinks that high-yield domestic corporate debt has a better balance of risk to reward. He also likes A- and BBB-rated municipal bonds. ...

Cramer: Get in Shape for a Decline

twocents@thestreet.com (Jim Cramer) — Wed, 19 Jun 2013 15:31 GMT

Editor's Note: This article was originally published at 6:32 a.m. EDT on Real Money on June 19. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK (Real Money) -- How in heck can you tighten or taper when copper's just getting pounded and steel prices can't hold up? How can we think about tapering when Airgas which has its fingers in every single pie says non-residential construction is very weak and Terex agrees? How do you start tightening when Europe's still in flux and China seems to be going down fast?

How do we base the end of QE3 on homebuilding when we didn't get good homebuilding numbers yesterday? ...

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Starbucks' Profit Aroma Is Invigorating

twocents@thestreet.com (Robert Weinstein) — Wed, 19 Jun 2013 15:20 GMT

NEW YORK (TheStreet) -- Twenty-six percent. That's how much higher shares of Starbucks are after my last article about the company, "Starbucks, the Doorway to the World," was published.

Expect Starbucks to continue serving fresh mugs of growth, profits and increasing dividends. In the last three years, the dividend payments have more than doubled. Based on the same period's payout ratios and profit growth, another increase within the next 12 months should not come as a surprise.

That's exciting news for shareholders, but more importantly, it's not too late to ride the java profit train. The key is management. During the Great Recession, Starbucks was exceedingly quick to close locations that weren't performing, thus preserving cash and shareholder value. Starbucks' management is battle-tested during growth and contraction periods. That's the safety net you want when buying 52-week highs. Shares of Starbucks closed Tuesday at $67.10. Also see: Cities Need More Starbucks, Not City Targets>> ...

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Conspiracy Theorists Have Another Go at TWA Flight 800

twocents@thestreet.com (Ted Reed) — Wed, 19 Jun 2013 15:20 GMT

NEW YORK (TheStreet) -- One of the great mysteries in commercial aviation is why some people continue to question the cause of the 1996 crash of TWA Flight 800.

The people believe that the flight was brought down by a missile, although the National Transportation Safety Board has investigated and discarded that theory. They believe a conspiracy prevents the real cause from being revealed, although few offer any motive for such a conspiracy. On Wednesday, at a media conference, several of them announced that they have filed a petition requesting the NTSB to reopen the investigation and that their case will be fully explained in a video to be released on July 17, the anniversary of the crash.

TWA Flight 800 exploded and crashed into the ocean off Long Island on July 17, 1996, 12 minutes after taking off from New York's Kennedy Airport, killing all 230 people on board. The NTSB investigated for four years before issuing a 2000 report attributing the crash to an explosion of flammable fuel vapors in the center fuel tank, apparently triggered by a spark from a short-circuit in the wiring. ...

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Why Alcatel-Lucent's Cost-Cutting Strategy Will Fail

twocents@thestreet.com (Richard Saintvilus) — Wed, 19 Jun 2013 15:09 GMT

NEW YORK (TheStreet) -- Turning around the fortunes of a chronically struggling company is never easy. It becomes almost impossible when your rivals are operating with pinpoint execution.

When you're drowning in poor fundamentals with seemingly no lifeline, the term "sink or swim" becomes more defined. But you have to know which option is better.

This pretty much sums up the current status of Alcatel-Lucent and the decisions that are being made by CEO Michel Combes, who seems intent on going "back to the basics" and cutting costs. While I won't disagree there is merit in shoring up ALU's balance sheet, I just don't believe these are the right moves at this point in time. ...

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Quick Take: Foot Locker a Perfect Fit for Fund

twocents@thestreet.com (Bret Kenwell) — Wed, 19 Jun 2013 14:42 GMT

NEW YORK (TheStreet) -- If the market goes down, what stocks should you buy? TheStreet's Gregg Greenberg discussed this with Matt Schreiber, president of WBI Funds, on Wednesday. Schreiber expects to see a pullback in equities at some time in the next couple of months. Generally stocks pull back roughly 10% each year, he said. May's market action showed signs of potential weakness ahead for the summer months. If a pullback does occur, Susquehanna Bancshares remains one of Schreiber's favorites thanks to recent earnings and revenue strength over the previous year. Earnings per share increased 67% over the past 12 months, while revenues are up 20%. With a 2.7% dividend yield, he feels as though the valuation is fair for buyers. Despite Foot Locker's underwhelming year-to-date performance, Schreiber stresses the valuation is low and the fundamentals are strong. With double-digit earnings growth and the upcoming back-to-school season only a few months away, he believes Foot Locker could have a strong finish to 2013. Finally, there's Digital Realty Trust, which is at the lower end of its 52-week range. While the stock has seen a lot of challenges from competitors and real estate investment trusts in general have struggled lately, Schreiber really likes the fundamentals of the company, citing its "phenomenal" earnings and revenue. ...

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Should BMI's Good Old Boys' Network Make Rules for the Digital Age?

twocents@thestreet.com (Rocco Pendola) — Wed, 19 Jun 2013 14:00 GMT

NEW YORK (TheStreet) -- Broadcast Music, Inc., better known as BMI makes it difficult to find a list of its current Board of Directors. In fact, I'm not sure an actual Webpage exists. You know, the standard "Board of Directors" link off of an "About Us" tab or some sort.

I called a couple BMI offices, asking for the link. The folks who answered the phone weren't even sure one existed. They put me through voicemail hell. The 2012 annual report I discovered doesn't even make mention of a Board. Finally, I had to resort to an October 2012 press release, announcing the reelection of a board member, to secure a complete rundown.

(Yes, I could access an IRS form, but, why should I have to and how many people would think of that?). ...

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Wahman: How Nvidia Is About to Change the Entire Gaming Industry

twocents@thestreet.com (Anton Wahlman) — Wed, 19 Jun 2013 13:14 GMT

NEW YORK (TheStreet) - Twenty to 25 years ago, did people regularly bring laptops to cafes in order to work? Did you see other people doing this?

I didn't, back then. The concept of sitting with your laptop at a cafe to squeeze in an hour of work was essentially an unheard-of concept at until at least the early 1990s, more likely around year 2001.

There was primarily one reason for this: No laptops! Most people just didn't start getting laptops until the last 20 years. ...

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Continue to Avoid Transportation Stocks

twocents@thestreet.com (Richard Suttmeier) — Wed, 19 Jun 2013 12:25 GMT

NEW YORK (TheStreet) -- The Dow transportation average set its latest all time high at 6,568.41 on May 20, two days below the Dow industrial average set its latest all time high at 15,542.40. In Record High Transports a Second Chance to Sell on May 8, all eight of the transportation stocks I have been tracking had sell ratings. Today six are rated sell and two rated hold. On May 8, 83.2% of all stocks in this sector were rated sell, and today 74.9% are rated sell, still negative enough to rate the sector "avoid-source of funds".

Investors had that second chance to sell as Dow transports set another all-time high on May 20.

In today's table of stocks, all eight are overvalued and seven of eight had double-digit gains of 10.1% to 47.2% over the last 12 months. The projected losses for the next 12 months range from down 4.4% and 8.6%. Caution flags are up as the 12 month trailing price-to-earnings ratios are becoming elevated between 14.1 and 27.1. All are above their 200-day simple moving averages which risks reversion to the mean. ...

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Global Macro: Bernanke's Comments Should Bode Well for Stocks

twocents@thestreet.com (Andrew Sachais) — Wed, 19 Jun 2013 11:55 GMT

NEW YORK (TheStreet) -- With Federal Reserve Chairman Ben Bernanke's testimony fast approaching, markets continue to look for an edge in figuring out what the Fed will do next.

Trading on Tuesday signaled that investors believe Bernanke will reiterate his commitment to helping the economy, which is bullish for riskier assets.

Since late May, global markets have questioned central bank commitment to aiding economies, which led to heightened volatility. Any form of clarity on Wednesday over continuing bond purchases will settle traders and should boost equities and commodity-linked currencies. ...

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How Smart Is Pandora, Really?

twocents@thestreet.com (Richard Saintvilus) — Wed, 19 Jun 2013 10:30 GMT

NEW YORK (TheStreet) -- There's never a dull moment in the world of Pandora . So far in 2013 Pandora has had the angels on its side, its stock gaining as much as 110%.

Remarkably, investors continue to pile money into Pandora even as rival services from Google's All Access and Apple's iTunes Radio have emerged. Unlike previous years, Pandora seems to have developed bullet-proof resistance from concerns that would have otherwise punished the share price.

While I don't disagree that Pandora's management has been pushing all of the right buttons, I wouldn't advise investors to press their luck too much. Rising content costs is still a major issue here. Also, I don't believe that Pandora has effectively addressed its ability to monetize its business model. That said, I will give Pandora credit for being smart enough to at least think "outside the box" to mitigate the impact of these costs. But how well will it work? ...

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Oracle Still Looks Like a Smart Buy

twocents@thestreet.com (Richard Saintvilus) — Wed, 19 Jun 2013 10:00 GMT

NEW YORK (TheStreet) -- Say what you want about the dormant nature of enterprise IT spending: Oracle certainly knows how to keep things interesting.

First, the database giant surprised the entire sector with its $2.1 billion acquisition of Acme Packet . Then, a little more than a month later, the company announced its intent to pick off network vendor Tekelec.

Although the Tekelec announcement didn't push the needle in terms of media attention, the move nonetheless demonstrates how serious Oracle is to differentiate itself from cloud rivals including Salesforce.com and SAP . But perhaps more noteworthy is this deal signals the confidence of CEO Larry Ellison and Oracle's management team to go after telecom assets to combat (among others) Cisco . >>Also see: Cooperman's Omega Advisors Is 'Comfortable' With Linn Enegy>> ...

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'Mad Money' Lightning Round: Loews Is an Absolute Winner

twocents@thestreet.com (Scott Rutt) — Wed, 19 Jun 2013 10:00 GMT

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- Here's what Jim Cramer had to say about some of the stocks callers offered up during the "Mad Money Lightning Round" Tuesday evening:

BMC Software : "You've won. Let's go find the next winner."

Applied Materials : "They should split that company into two. If they did, bingo!" ...

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Cramer's Top Stock Picks: V MC AXP ISRG POT HRS ARG msft intc

twocents@thestreet.com (Scott Rutt) — Wed, 19 Jun 2013 10:00 GMT

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- Here are some of the hot stocks Jim Cramer talked about on Tuesday's "Mad Money" on CNBC:

V data by YCharts

Visa , MasterCard and American Express : Cramer said these are among the stocks that should rally after the Fed-induced selling has subsided. ...

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The Fed's Jedi Mind Trick

twocents@thestreet.com (James Kostohryz) — Wed, 19 Jun 2013 09:30 GMT

NEW YORK (TheStreet) -- The Fed understands that it must quickly wind down QE, lest the experiences of 2001 to 2007 be repeated. During this fateful period, the Fed maintained too much monetary accommodation for too long (2001-2003), and then failed to remove the excess liquidity from the economy in a timely fashion (2003-2007). The result was the formation of asset bubbles and relative price distortions, which ultimately led to devastation of the U.S. financial system and overall economy.

Still, cognizant of these risks, many Fed officials are also concerned that economic growth in the U.S. is very weak and vulnerable to reversal. These officials fear that removal of monetary accommodation could trigger instability in credit markets, which could in turn derail the weak recovery being experienced in the real economy.

What will the Fed do in the face of this dilemma? They have apparently decided that Jedi mind tricks are the answer. By confidently uttering things that are both suggestive and a bit mysterious, the Fed hopes that it can keep bond vigilantes bamboozled and stock bulls from running wild, while at the same time continuing to pump liquidity into the economy ostensibly to support the real economy. ...

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Cramer's 'Mad Money' Recap: Buys Amid the Rubble

twocents@thestreet.com (Scott Rutt) — Wed, 19 Jun 2013 00:32 GMT

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NEW YORK (TheStreet) -- It's time to head for the bomb shelters tomorrow at 2 p.m. ET, Jim Cramer told his "Mad Money" TV show viewers Tuesday.

He said that after the Federal Reserve's announcement the bears will be out in force. Only after the bombing has subsided should investors consider picking among the rubble. ...

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Cramer's 6 Stocks in 60 Seconds: FDX RHT ENB COP LNKD ISRG (Update 1)

twocents@thestreet.com (Bret Kenwell) — Tue, 18 Jun 2013 21:36 GMT

Check out Jim Cramer's latest trading recommendations on "Action Alerts Plus". (Updates from 10:47 a.m. ET with closing information.)

NEW YORK (TheStreet) -- Here's what Jim Cramer had to say on CNBC's "Squawk On The Street" Tuesday. Citigroup thinks FedEx will have a positive outlook. Cramer warned that "you're taking your life in your hands" by getting into this stock before the company reports earnings. "Let it come in," he advised. FDX closed up 1.1% at $99.48. Red Hat has been getting crushed but Piper Jaffray thinks the stock is at a good price level. Cramer does, too, saying, "It's going to bottom soon." RHT jumped 2.1% to $46.63. Goldman Sachs added Enbridge to its conviction buy list. Cramer said the group has been horrendous but Goldman may be calling a bottom. ENB was 1.3% higher at $44.78. ConocoPhillips was downgraded by Howard Weil. Cramer said this downgrade doesn't matter because "oil is going higher." COP was unchanged at $62.10. It's time to buy LinkedIn, according to Pacific Crest. Cramer said that with more investors wanting to buy and so few shares available there's "scarcity value" on this stock. LNKD was up 1% to $179.42. Wedbush likes Intuitive Surgical's growth prospects. Cramer isn't as sure, citing CNBC colleague Herb Greenberg's recent study of the stock. ISRG ended Tuesday up 2.1% to $509.61.

To sign up for Jim Cramer's free Booyah! newsletter, with all of his latest articles and videos, please click here. ...

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Huawei May Want Nokia But It Won't Happen

twocents@thestreet.com (Eric Jackson) — Tue, 18 Jun 2013 21:29 GMT

NEW YORK (TheStreet) -- Huawei has said that it is open to merging with Nokia.

The news caused the stock to jump Tuesday as high as $4.12 before closing at $3.86. It's the first time the stock has been above $4 since February.

The reasons why Huawei would be interested in Nokia are numerous. ...

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Response to Microsoft's Xbox One Console Lights Warning Flares

twocents@thestreet.com (Richard Cox) — Tue, 18 Jun 2013 20:22 GMT

NEW YORK (TheStreet) -- Microsoft's main troubles in its traditional businesses have become clear. PC sales could drop by as much as 10% this year and a lackluster response to its Windows 8 operating system has prodded the company to begin work on a new version of the product (to be released later this year).

Where the company has shown consistent strength is in its entertainment division. Its latest release, Xbox 360, managed to overcome major technical issues and offer big processing power with superior online functionality. The unit sold over 75 million units and brought more than 40 million customers to its Xbox Live online gaming service, making it one of the most acclaimed gaming consoles ever.

But Microsoft's top positioning in these sectors is starting to look vulnerable, as the recently announced XBox One has been met with general disappointment in two areas: ...

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Shorts Battle Over Linn

twocents@thestreet.com (Daniel Dicker) — Tue, 18 Jun 2013 18:04 GMT

NEW YORK (TheStreet) -- Linn Energy has become a news story without much news, courtesy of TheStreet founder Jim Cramer and the very aggressive short war being engaged by Barron's magazine and a research firm looking to make a name for itself.

So the battle over Linn is pitched, but let's take a look, not as an analyst but as a trader should -- trying less to find a winner in the numbers and rhetoric, but instead understanding the trading psyche that encircles this beleaguered name.

First, understand that Linn uses the Master Limited Partnership structure in a very unique way and some could argue it abuses this structure, both in the tax advantages it gains and the distributions it looks to pass along to its shareholders. I won't opine on whether turning an energy company into a registered MLP is a fair or unfair organizational trick, but I will say that it can make proper valuation of this name difficult for the retail investor -- there is no other energy company quite like Linn. >>Also see: Coal Is First Casualty of Energy Abundance>> The retail shareholder is what the stock action has been all about. Linn is not an institutional name -- its holders are mostly all retail punters, easily frightened and sensitive to "bear raid" activity. With almost 5% short interest in the stock, there is a good financial reason for certain funds to very much want to see those shares go down....

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Quick Take: Fund Manager All-In On Actavis, Visa

twocents@thestreet.com (Bret Kenwell) — Tue, 18 Jun 2013 17:52 GMT

NEW YORK (TheStreet) -- Are there quality growth stocks out there? TheStreet's Gregg Greenberg discusses a few of them with Edward Painvin, portfolio manager for the Chase Growth Fund. Painvin's first pick is Visa, which is up over 50% in the last year and, as Greenberg pointed out, is now trading at 22 times next year's earnings. While it may seem expensive, Painvin notes that Visa controls 22% of the personal consumption market, and the move from cash and checks to plastic is only going to grow in the coming years. Precision Castparts is another name his fund continues to like. The company makes parts for Boeing's 787 Dreamliner and Airbus's A380. Of the $200 million Dreamliner, about $10 million of that cost went to parts from Precision Castparts. Painvin says production is expected to increase to 10 planes per month by the end of the year, a significant boost from the current five to seven plane rate. The fund also likes Actavis, after its recent acquisition of Warner Chilcott, which should help extends its specialty brands, especially among women. Finally, one of his favorite picks is Thermo Fisher Scientific, despite the 70% run in the past year. While it may seem extended, Painvin said the earnings and price momentum measurements remain favorable. He also pointed out that Thermo Fisher should add $1 to its 2014 earnings per share figure with its focus on food safety, water treatment, and scientific development. These focuses are in long-term secular trends and should continue to reward shareholders down the road. ...

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Shorts Walk the LINE

twocents@thestreet.com (Dana Blankenhorn) — Tue, 18 Jun 2013 17:37 GMT

NEW YORK (TheStreet) -- Back when I was a young reporter at the Houston Business Journal, an oil boom was on.

Anyone who could bring up oil could make a fortune. Most of the intrigue in the business involved seismic testing, leasing in the Gulf and the hunt for "elephant" finds in remote locations. The boom ended when prices crashed early in the 1980s and consumers cheered.

With fracking you can get oil and natural gas just about anywhere. The easiest places to get it are where it was found before, like the Eagle Ford Shale play in Texas or the Utica Shale play in Ohio. But fracking has also created new finds, especially gas finds like the Marcellus Shale on the east coast and Oklahoma's Granite Wash. ...

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Why Apple Sucks as an Investment, but Amazon Doesn't

twocents@thestreet.com (Rocco Pendola) — Tue, 18 Jun 2013 17:21 GMT

NEW YORK (TheStreet) -- Yes. That's a provocative headline. Designed to make you click. Pretty amazing, isn't it, that we do that in this business. We actually want to catch your attention at the front door, so you'll walk in, spend some time, use the back door and do it all over again sometime soon.

Sort of like the television or radio programs that "tease" really interesting things right before a commercial break. Or the music act that saves their best songs for the encore.

Truth be told, most people who complain about outrageous headlines don't actually have a problem with the outrageous headline. They just use the spectacle of the headline to project annoyance with an argument their psychological filters keep them from considering. So, ironically, they are are much more nefarious and suspect in their use of the headline than we are. ...

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