GT Advanced Technologies Is On Target To Produce Sapphire For The iWatch And iPhone 6

By Matt Margolis:

According to the latest FTZ Application filed on July 16, 2014 Apple Inc. (NASDAQ:AAPL) and GT Advanced Technologies (NASDAQ:GTAT) are requesting an expansion of the existing scope of Project Cascade to include additional components for use in production as well as additional finished goods that will be manufactured from the facility.

This Production Notification notification will expand the existing scope of authority for Project Cascade’s facility to include additional components for use in production and additional finished goods that will be manufactured at the facility, which will benefit the City of Mesa and the entire State of Arizona.

The Interim Production Notice (PN) is being made to expand the scope of the Production Authority already approved by the FTZ Board. The Interim PN request for expedited approval has “an aggressive go-live timeline of August 2014.”

(click to enlarge)

July 16th, 2014 Production Notification Request Highlights (Source FTZ Application)

Project


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Unusual 11 Mid-Day Movers 8/22: (PSMI) (MSN) (PRKR) Higher; (ZBB) (BORN) (RGSE) Lower

Peregrine Semiconductor Corporation (Peregrine) (Nasdaq: PSMI) 60.7% HIGHER; Murata Electronics North America, Inc., a wholly owned subsidiary of Murata Manufacturing Co., Ltd., and Peregrine Semiconductor announced that they have entered into a definitive agreement under which Murata will acquire all outstanding shares of Peregrine not owned by Murata, for $ 12.50 per share in cash, or a total transaction value of $ 471 million ($ 465 million excluding Murata’s existing holding).

Emerson Radio (AMEX: MSN) 23.3% HIGHER; declared a special dividend of $ 0.70 per share. The dividend will be payable on September 30, 2014, to stockholders of record on September 12,
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Amazon’s Stock Can’t Defy Gravity Forever

Amazon Stock Can’t Continue Upward Forever

By Louis Basenese, Equity Analyst

Amazon (AMZN) has been basking in the glory of higher sales and share prices, thanks to a phenomenon known as “showrooming.”

That’s when consumers hit their local stores to get an up-close look at a product, but then head home to purchase it online.

Chances are you’re guilty of this behavior, too, since an annual Harris poll shows that 46% of Americans admit to showrooming (up from 43% the year before).

For years, analysts perceived showrooming as the biggest threat to traditional brick-and-mortar retailers. And as the dinosaur in the business, Amazon has been the biggest beneficiary of this habit for years.

But is the company’s entrenched competitive advantage about to backfire?

Brick-and-Mortar Resurgence

For the first time ever, though, Harris chronicled a higher occurrence of the opposite trend. That is, reverse showrooming, or “webrooming.”

That’s when consumers do research online, but then head to a physical store to make a purchase.

Annual poll of consumer behaviors

Granted, by no means are these behaviors mutually exclusive. Consumers do both. But the data does bust the widely held belief that showrooming is the most prevalent.

As you can see, the opposite is true, which indicates a much more significant and ominous development for Amazon investors.

Simply put, traditional retailers are fighting back. And it’s working!

They’re embracing consumers’ desire to research purchases first by offering in-store Wi-Fi. Couple that with exclusive mobile app discounts, and they’re winning back business.

This isn’t altogether surprising.

As I shared on CNBC last fall, Amazon’s cost advantage has been eroding.

With shipping prices on the rise and more states collecting sales tax from online purchases, items on Amazon could actually end up costing consumers more in the near future.

Now, we’re all suckers for the best deal. Especially in the wake of the Great Recession, which instilled a heightened cost-consciousness in us.

Add it all up, and the offline option is becoming more compelling. And that spells trouble for Amazon, given its razor-thin margins and stratospheric stock valuation.

At current prices, shares trade hands for more than 170 times forward earnings. Like Bon Jovi, investors in the stock are “livin’ on a prayer.” Here’s why…

Beware of Gravity

For as long as I can remember, Amazon’s stock has been (over) valued based on the company’s potential to turn a profit in the future. The rationale being, the more and more customers Amazon attracts, the more it can eventually monetize that user base.

After years of investing untold hundreds of millions of dollars in growth initiatives, the day of massive profitability still remains elusive.

In fact, last quarter, Amazon reported a much wider-than-expected loss of $ 126 million, or $ 0.27 per share. (Analysts expected a loss of $ 0.15 per share.)

And the company is projecting even more losses this quarter.

Finally, investors appear to be growing impatient with Amazon’s “perpetual investment mode,” as Standard & Poor’s analyst, Tuna Amobi, puts it.

For good reason, too.

It seems that Amazon’s master plan is to keep investing gobs of money in additional low-margin businesses.

Take, for instance, AWS, Amazon’s cloud-computing operations.

The company plowed over $ 1 billion into it so far this year – with billions more expected. Bulls love to play up the profit potential of this division.

Newsflash: Cloud computing is a commodity business, netting mere pennies per hour of server usage. It’s an increasingly competitive market, too.

Case in point: Since 2006, Amazon has cut its cloud-computing costs more than 40 times to stave off competition from Microsoft (MSFT) and Google (GOOGL). Yet the price wars continue to this day.

Amazon’s most recent foray into the smartphone market smacks of another ill-fated expansion into a highly competitive, notoriously low-margin business.

I’m sorry. But continuing to invest in low-margin business doesn’t add up to meaningful profits in the end.

Bottom line: The game of valuing Amazon based on its soaring revenue has gone on ever since the company went public – back in the heyday of the dot-com boom. But profits ultimately matter. No exceptions. So it’s only a matter of time before Amazon shareholders confront this reality.

Look out below!

Ahead of the tape,

Louis Basenese

The post Amazon’s Stock Can’t Defy Gravity Forever appeared first on Wall Street Daily.
By Louis Basenese


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Apple’s iWatch Profit Potential

By Mark Hibben:

Since the beginning of the year, I’ve been very bullish about the sales potential of Apple’s (NASDAQ:AAPL) iWatch, but in my recent review of iWatch rumors, even I offered only a very conservative prediction of Holiday quarter sales: 3-5 million units, based on supply constraints. Many Apple bears have been understandably skeptical about the market potential for the iWatch, so I was gratified to hear Morgan Stanley’s Katy Huberty offer a bullish take on iWatch in her most recent guidance for Apple. In fact, her prediction that Apple could sell as many as 60 million iWatches in its first year took my breath away.

All Over the Map

Market forecasts for wearable tech have been all over the map. In the table below, I summarize some of the more recent forecasts that I’ve been able to find.

Source

Estimate Date

2014 Unit Volume millions

2014 $ Volume billions

2015 Unit


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This Apparel Player Can Deliver Long-Term Growth

By JuhiKulkarni. Read more » »
Related Stocks: GIII, URBN, AEO,
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Fastenal Is On Track to Deliver Long-Term Growth

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KMI Merger Brings a Big Tax Bill for MLP Investors

Even though the exchange of KMP and EPB shares to KMI will be treated as a sale, Kinder has bold expectations for growth and savings that unitholders will benefit from.

The post KMI Merger Brings a Big Tax Bill for MLP Investors appeared first on InvestorPlace.

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After-Hours Stock Movers 8/20: (SMTC) (SBH) Higher; (KIN) (PRCP) (HPQ) Lower (more…)

Kindred Biosciences, Inc. (NASDAQ: KIN) 31% LOWER; announced that its pivotal field study (KB010) of CereKin, an interleukin-1 inhibitor for the control of pain and inflammation associated with osteoarthritis in dogs, did not meet its primary endpoint. The randomized, double-blind, placebo-controlled study evaluated the safety and efficacy of two doses of CereKin (5 mg/kg and 20 mg/kg).

Perceptron, Inc. (NASDAQ: PRCP) 6% LOWER; reported Q4 EPS of $ 0.10, $ 0.13 worse than the analyst estimate of $ 0.23. Revenue for the quarter came in at $ 17.39 million versus the consensus estimate of $ 18.26 million.

Semtech Corp (NASDAQ: SMTC) 2.9% HIGHER;
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The Truth About Kinder Morgan’s Latest Move

Kinder Morgan's Latest Consolidation Move

By Karim Rahemtulla, Chief Resource Analyst

On August 11, Kinder Morgan (KMI) dropped a bombshell on the market.

The company announced that it was consolidating its partnership ventures – currently trading as master limited partnerships (MLPs) – into a single non-MLP entity.

The news sent all Kinder Morgan-related entities shooting to the moon.

Now, the consolidated entity will become the largest pipeline operator in the United States.

But was the company’s decision a smart move for investors in the long run, or is the stock now set to self-destruct?

Why Consolidate Now?

As the operator of these pipelines, Kinder has made its money as the toll collector. So it has been relatively immune to the ups and downs of energy prices.

After all, the energy that’s being produced still has to make its way to refiners and processing plants – and pipelines are still the cheapest and safest method of transportation.

Since 2006, U.S. energy production has soared, something we write about frequently in these very pages.

And the outlook for energy production in the United States will continue to grow for at least the next couple of decades.

That spells even more opportunity for Kinder.

Now that it has consolidated, the $ 140-billion company has the resources to go after major new infrastructure deals – like rail terminals, barges, trucking, and (of course) more pipelines.

In other words, Kinder Morgan made the right call. For more reason than one…

You see, as individual entities, the MLPs were becoming pressed to maintain dividend growth.

Granted, revenue, cash flow, and earnings were increasing. But as the partnerships increased in size, that growth wasn’t enough to sustain higher, growing payouts – something that would eventually drive investors out.

By consolidating, Kinder can now “grow” that dividend, as well as provide a strong case for future capital appreciation, something MLPs aren’t known for.

Paving the Pathway to Success

The entities will all trade under the KMI symbol. Starting next year, the shares will pay a dividend of $ 2 per share, equating to 5% based on the current price.

At 5%, with the possibility of regular annual increases and capital appreciation, Kinder will attract a lot of attention from the investing community. And with the type of asset mix in its portfolio, it will become the blue-chip standard in the energy infrastructure sector.

Kinder has shown itself to be a growth juggernaut. Starting with $ 40 million in assets – which Richard Kinder and William Morgan purchased from Enron in 1996 – the company has grown to something north of $ 140 billion. And it has made investors very rich in the process.

One of Kinder Morgan’s most appealing qualities has been the level of inside ownership and insider buying – especially by Richard Kinder. (He will own about 11% of the company once the deal is done.)

Bottom line: Consolidating was absolutely the right move. KMI is a must-own stock for any energy portfolio. It gives you yield, growth, and a stake in the massive energy infrastructure boom that’s taking place right now. Pullbacks should be viewed as buying opportunities!

And “the chase” continues,

Karim Rahemtulla

The post The Truth About Kinder Morgan’s Latest Move appeared first on Wall Street Daily.
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Zygna And King.com’s Failures Could Be Nintendo’s Opportunity

By Patrick Mork:

As a long-term Nintendo (OTCPK:NTDOY) shareholder and fan, I nearly fell out of my chair the other day when I saw the movement of the share price — up more than 4% on 8.18 on the Tokyo stock exchange (though it’s subsequently down a bit today as folks take some profit).

The reason: speculation that Nintendo will finally enter the booming mobile games market through its affiliate, The Pokemon Company, by launching a Pokemon game made for Apple’s (NASDAQ:AAPL) iPad. Though there is no exact date set yet articles appeared in both the WSJ (for those of you who still pay for news) and Bloomberg related to Nintendo’s plans. The Pokemon game in question, a trading card game (TCG), works perfectly for this franchise (since Pokemon is not only a hit TV show but also based on a real world collectable card game in its own right). More importantly, the


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