The lesson of history is this: Bubbles eventually pop! In 2000, investors felt the nasty sting of that fall, both seasonally and directionally, for a decade or more, recalls Jim Oberweis, Jr. in The Oberweis Report.
Victims of the late 1990s tech boom neglected basic laws of intelligent investing and replaced them with nonsensical metaphors to justify greed, like profits don't matter.
Now, as the stock market soars, isolated strains of valuation amnesia have been reported once again. And among a few momentum stocks, the possibility of massive overvaluation is more than plausible.
Bubbles usually start around real ideas, often ideas with dreamlike investment potential. In the 1840s, it was railroads. In the 1920s, we had radio, automobiles, aviation, and electric power grids. In the 1980s, it was anything Japanese.
By the late 1990s, internet and e-commerce stock valuations rocketed into the stratosphere. While a few of the highly-touted bubble stocks grew into big winners, most bombed.
10 Best Japanese Stocks To Watch For 2015: MakeMyTrip Limited(MMYT)
MakeMyTrip Limited, an online travel company, provides travel products and solutions in India and the United States. Its products and services include air tickets, hotels, packages, rail tickets, bus tickets, car hire, and ancillary travel requirements, such as travel insurance and visa processing. The company, through its Website, makemytrip.com, allow travelers to research, plan, and book a range of travel services and products in India and internationally. MakeMyTrip Limited also provides its products and services through other technology-enhanced distribution channels, such as call centers, travel stores, and travel agents? network. Its customers comprise leisure travelers and small businesses. The company was formerly known as International Web Travel Private Limited and changed its name to MakeMyTrip Limited in April 2010. MakeMyTrip Limited was founded in 2000 and is based in Gurgaon, India.
Advisors' Opinion:- [By Eddie Staley]
In trading on Tuesday, technology shares were relative laggards, down on the day by about 1.68 percent. Top decliners in the sector included Camtek (NASDAQ: CAMT), down 15.54 percent, and MakeMyTrip (NASDAQ: MMYT), off 11.85 percent.
10 Best Japanese Stocks To Watch For 2015: Nuveen Equity Premium Opportunity Fund (JSN)
Nuveen Equity Premium Opportunity Fund (the Fund) is a diversified, closed-end management investment company. The Fund primarily invests in a diversified equity portfolio that seeks to substantially replicate price movements of either the Standard & Poor's 500 Stock Index or a weighted average of the Standard & Poor's 500 Stock Index and the NASDAQ-100 Index and is designed to support the Funds' index option strategies. Nuveen Asset Management is the adviser of the Fund. The Adviser has engaged Gateway Investment Advisers, L.P. (Gateway/Sub-Adviser) as Sub-Adviser to provide discretionary investment advisory services.
The initial target weighting of the Fund's equity portfolio in seeking to replicate the weighted average price movements of the market indexes will be 75% of the Standard & Poor's 500 Stock Index and 25% of the NASDAQ-100 Index. Over time, these percentage weightings may vary as the result of relative changes in each index. The Fund intends to pursue its investment objectives by utilizing an index option strategy of selling index call options and buying index put options, each on the Standard & Poor's 500 Stock Index and the NASDAQ-100 Index.
The Fund's comparative benchmark performance is a blended return consisting of 75% of the return of the S&P 500 Index, and 25% of the return of the NASDAQ-100 Index, which includes 100 of the largest domestic and international non-financial companies listed on The NASDAQ Stock Market based on market capitalization. The NASDAQ-100 Index reflects companies across major industry groups, including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology.
Advisors' Opinion:- [By Robert Hsu]
Here are four to consider:
PowerShares S&P 500 BuyWrite ETF (PBP), yielding 4.09%
Madison/Claymore Covered Call & Equity Strategy (MCN), yielding 8.94%
Nuveen Equity Premium Opportunity Fund (JSN), yielding 9.19%
BlackRock Enhanced Dividend Achievers (BDJ), yielding 7.39%
The yield on these funds is very attractive. Even more attractive is the fact that many buy-write funds actually are selling at a discount to their net asset value.
- [By Robert Hsu]
Name Type of Security� Recommendation� Kinder Morgan Energy Partners L.P. (NYSE: KMP) � MLP August 15, 2013� TeeKay LNG Partners L.P.� (NYSE: TGP) � MLP September 16, 2013� PowerShares S&P 500 BuyWrite Portfol ETF� (NYSE Arca: PBP)� Buy-Write ETF September 30, 2013� Madison Covered Call Equity Strtgy Fd (NYSE: MCN)� Buy-Write ETF September 30, 2013� Nuveen Equity Premium Opportunity Fund (NYSE: JSN)� Buy-Write ETF September 30, 2013� BlackRockEnhanced Dividend Achievers Tr (NYSE: BDJ)� Buy-Write ETF September 30, 2013� Vornado Realty Trust � (NYSE: VNO)� Real Estate
Investment
Trust September 26, 2013�Robert Hsu is the editor of Permanent Wealth Investor and a former hedge fund portfolio manager at Wall Street powerhouse Goldman Sachs. He retired from Goldman at age 31. He since has come out of retirement to establish and preside over his money management firm, Absolute Return Capital Advisors. His retirement experience has given him his current mission: helping investors like you achieve their goal of comfortable retirement through profitable income strategies.
Top 10 Construction Material Stocks To Watch Right Now: China Teletech Holding Inc (CNCT)
China Teletech Holding, Inc., formerly Guangzhou Global Telecom, Inc., incorporated on March 29, 1999, is a distributor of pre-paid calling card and integrated mobile phone handsets and a provider of mobile handset value-added services. The Company serves as one of principal distributors of China Telecom, China Unicom, and China Mobile products in Guangzhou City. The Company is also developing an on-line refill platform with China Mobile to develop its on-line business in the Guangdong Province. On March 30, 2012, the Company acquired China Teletech Limited.
The Company operates its business through its subsidiaries in China: Guangzhou Renwoxing Telecom Co., Ltd., Guangzhou Global Telecommunication Co., Ltd., Guangzhou Rongxin Technology Co., Ltd., and Shenzhen Rongxin Investment Co., Ltd. The Company also engages in the business of wholesale and distribution of mineral water, as well as trading of wine in China. The Company has cooperative distribution relationships with Panasonic, Motorola, LG, GE, Bird, Samsung corporations for their mobile handsets.
Advisors' Opinion:- [By MARKETWATCH]
HONG KONG (MarketWatch)-- Hong Kong stocks rose early Thursday, as China Mobile Ltd. shined on news of iPhone pre-orders hitting 1 million units. The Hang Seng Index (HK:HSI) added 0.6% to 23,032.09. Market heavyweight China Mobile (HK:941) (CHL) rallied 0.9%, as the world's largest mobile carrier said it has received more than 1 million pre-orders for the iPhone before it goes on sale in the carrier's stores on Friday, at a time when Apple Inc. (AAPL) Chief Executive Tim Cook visited Beijing for future cooperation between the two giants. Telecom equipment shares also advanced, with ZTE Corp. (HK:763) (ZTCOF) rising 1.2%. Meanwhile, China Mobile's smaller rivals slipped, as China Unicom (HK:762) (CHU) dropped 0.7%, and China Telecom (HK:738) (CNCT) fell 0.5%. China South City Holdings (HK:1668) , a developer of logistics and trade centers, surged 56%, after the company announced that Internet giant Tencent Holdings (HK:700) (TCTZF) would invest about 1.5 billion Hong Kong dollars ($195 million) for an almost 10% stake in the developer in order to expand their business online, including e-commerce and online payment services. Tencent Holdings (HK:700)
10 Best Japanese Stocks To Watch For 2015: DiamondRock Hospitality Co (DRH)
DiamondRock Hospitality Company, incorporated on May 6, 2004, is a lodging-focused Maryland corporation operating as a real estate investment trust (REIT). It owns a portfolio of 27 premium hotels and resorts that contain 11,590 guest rooms. It also holds the senior note on a mortgage loan secured by an additional hotel and has the right to acquire, upon completion, a hotel under development. Its portfolio is concentrated in key gateway cities and destination resorts. Each of its hotels is managed by a third party and are operated under a brand owned by one of the global lodging brand companies (Marriott International, Inc. (Marriott), Starwood Hotels & Resorts Worldwide, Inc. (Starwood) or Hilton Worldwide (Hilton)). In November 2013, the Company sold the Torrance Marriott South Bay.
The Company conducts its business through an umbrella partnership REIT (UPREIT), in which its hotel properties are owned by its operating partnership, DiamondRock Hospitality Limited Partnership, or subsidiaries of its operating partnership. Its properties are concentrated in key gateway cities (primarily New York City, Chicago, Boston and Los Angeles) and in destination resort locations , such as the United States Virgin Islands and Vail, Colorado.
During the year ended December 31, 2012, it acquired five new hotels and sold four non-core hotels located in the markets: Atlanta, Georgia; Boston, Massachusetts ; Burlington, Vermont; Charleston, South Carolina; Chicago, Illinois ; Denver, Colorado ; Fort Worth, Texas; Los Angeles, California ; Minneapolis, Minnesota; New York, New York ; Oak Brook, Illinois; Orlando, Florida; Salt Lake City, Utah; San Diego, California; San Francisco, California; Sonoma, California; St. Thomas, U.S. Virgin Islands; Vail, Colorado and Washington, D.C. It also owns a senior mortgage loan secured by a 443-room hotel located in Chicago, Illinois and have the right to acquire, upon completion, a 282-room hotel under development in New York City.
On July ! 12, 2012, it acquired a portfolio of four hotels from affiliates of Blackstone Real Estate Partners VI. The portfolio consists of the Hilton Boston Downtown, Westin Washington D.C. City Center, Westin San Diego and Hilton Burlington. The portfolio consists of the 362-room Hilton Boston Downtown, the 406-room Westin Washington, D.C. City Center, the 436-room Westin San Diego and the 258-room Hilton Burlington. On November 9, 2012, it acquired the 94-room Hotel Rex located in San Francisco, California. On March 23, 2012, it completed the sale of a three-hotel portfolio. The portfolio consisted of the Griffin Gate Marriott Resort and Spa, the Renaissance Waverly, and the Renaissance Austin. On October 3, 2012, it completed the sale of the Atlanta Westin North at Perimeter.
The Oak Brook Hills Marriott Resort, the Orlando Airport Marriott and the Hilton Garden Inn Chelsea/New York City each failed its performance test at the end of 2012. The Bethesda Marriott Suites hotel is subject to a ground lease. The Courtyard Manhattan/Fifth Avenue is subject to a ground lease. The Salt Lake City Marriott Downtown is subject to two ground leases: one ground lease covers the land under the hotel and the other ground lease covers the portion of the hotel that extends into the City Creek Center. The Westin Boston Waterfront is subject to a ground lease. The Hilton Minneapolis is subject to a ground lease. In addition, the golf course that is part of the Oak Brook Hills Marriott Resort is subject to a ground lease covering approximately 110 acres. A portion of the parking garage relating to the Renaissance Worthington is subject to three ground leases that cover, contiguously with each other, approximately 1/4 of the land on which the parking garage is constructed. Furthermore, these ground leases generally require them to obtain and maintain insurance covering the subject property.
Advisors' Opinion:- [By Laura Brodbeck]
Monday
Earnings Releases Expected: �McKesson�(NYSE: MCK), Concho Resources (NYSE: CXO), Diamondrock Hospitality (NYSE: DRH) Economic Releases Expected: �US Federal budget balance, Indian industrial productionTuesday
10 Best Japanese Stocks To Watch For 2015: Puma Biotechnology Inc (PBYI)
Puma Biotechnology, Inc., incorporated in April 2007, is a development-stage biopharmaceutical company that acquires and develops products for the treatment of various forms of cancer. The Company focuses on in-licensing drug candidates that are undergoing or have already completed initial clinical testing for the treatment of cancer and then seeks to further develop those drug candidates for commercial use. As of December 31, 2011, the Company licensed three drug candidates: PB272 (neratinib (oral)), which the Company is developing for the treatment of advanced breasts cancer patients and gastric cancer patients; PB272 (neratinib (intravenous)), which the Company is developing for the treatment of advanced cancer patients, and PB357.
PB272 (neratinib (oral))-Breast Cancer
Neratinib is a potent irreversible tyrosine kinase inhibitor, or TKI, that blocks signal transduction through the epidermal growth factor receptors (EGFRs), HER1, HER2 and HER4. The Company's initial focus is on the development of neratinib as an oral treatment of patients with HER2 positive metastatic breast cancer.
PB272 (neratinib (intravenous))
The Company develops neratinib as an intravenously administered agent. In pre-clinical studies the intravenous version of neratinib resulted in higher exposure levels of neratinib in pre-clinical models.
PB357
PB357 is an orally administered agent that is an irreversible TKI that blocks signal transduction through the epidermal growth factor receptors, HER1, HER2, and HER4. PB357 is structurally similar to PB272. Pfizer completed single dose Phase I trials of PB357. The Company is evaluating PB357.
The Company competes with Genentech, GlaxoSmithKline, Roche, Boehringer Ingelheim, Takeda, Array Biopharma and Ambit Biosciences.
Advisors' Opinion:- [By Ben Levisohn]
The Dow Jones Industrial Average and S&P 500 squeaked out new highs today, while the Nasdaq Composite and small caps dropped, following stronger-than-forecast manufacturing data out of China and a U.S. manufacturing survey that had to be corrected twice. Caterpillar (CAT) and Broadcom�(BRCM) gained, while Express Scripts (ESRX) and Puma Biotechnology (PBYI) tumbled.
- [By Tom Rojas and Maria Armental var popups = dojo.query(".socialByline .popC"); ]
Puma Biotechnology Inc.(PBYI) said its investigational breast-cancer treatment showed a 33% improvement in disease-free survival over a placebo in a Phase 3 study. Share surged 271% to $218 premarket.
- [By John Udovich]
Yesterday, small cap biopharmaceutical stock Puma Biotechnology Inc (NYSE: PBYI) jumped 11.98% after announcing they will have a conference call next week to update�investors on�its clinical trials of PB272 (neratinib) in cancer patients, meaning its probably time to take a closer look at the stock to see if investor might be counting the chickens before they hatch along with the performance of large cap AbbVie Inc (NYSE: ABBV) which also recently had positive news about its own breast cancer treatment plus biotech ETFs iShares NASDAQ Biotechnology Index ETF (NASDAQ: IBB) and SPDR S&P Biotech ETF (NYSEARCA: XBI).
10 Best Japanese Stocks To Watch For 2015: Coeur d'Alene Mines Corporation(CDE)
Coeur d'Alene Mines Corporation, together with its subsidiaries, engages in the ownership, operation, exploration, and development of silver and gold mining properties located primarily in South America, Mexico, the United States, and Australia. The company also explores for lead and zinc ores. Its properties include the Palmarejo mine located in the state of Chihuahua, northern Mexico; San Bartolome mine located near Potosi, Bolivia; Kensington mine located north-northwest of Juneau, Alaska; Rochester mine located in northwestern Nevada; Martha mine located in Santa Cruz, Argentina; and the Endeavor mine in New South Wales, Australia, as well as Joaquin, Tornado, and Satelite properties in Santa Cruz, Argentina. The company was founded in 1928 and is based in Coeur d?Alene, Idaho.
Advisors' Opinion:- [By Eric Volkman]
Coeur d'Alene Mines (NYSE: CDE ) is to sell its interest in two mines, one in Australia, and one in Chile.� The company has entered into a letter of intent with private company XDM to sell its stake in the silver production and reserves from the Endeavor mine in the former, and the royalty from the Cerro Bayo gold and silver mine in the latter.
- [By Dan Caplinger]
Meanwhile, among precious-metals miners, fundamentals and earnings-related news are playing a vital role. For instance, Coeur Mining (NYSE: CDE ) jumped 7% after the company said that its proven and probable silver reserves jumped 16% and gold reserves rose 12% in 2013. Measured and indicated silver resources jumped 27% as well, with even larger jumps in inferred resources in both silver and gold. With earnings due out later this week, Coeur is putting itself in position to benefit greatly if precious metals can rebound further. More generally, the Global X Silver Miners ETF (NYSEMKT: SIL ) posted a 1.2% gain today, outpacing its gold-miner counterpart, which had a more modest rise.
- [By Lisa Levin]
Coeur Mining (NYSE: CDE) shares touched a new 52-week low of $8.97 after the company reported its Q1 production results and maintained its 2014 production outlook.
- [By Tim Melvin]
Right now I know that silver miners like Pan American Silver (PAAS) and Coeur Mining (CDE) are very cheap on an asset basis. I know that oil and gas producers like Swift Energy (SFY) and WPX Energy (WPX) are priced as if no one will ever use the stuff again. I know that small banks like Cape Bancorp (CBNJ) and Essa Bancorp (ESSA) are crazy-cheap — and if the world does not end, those stocks will be a lot higher in a few years.
10 Best Japanese Stocks To Watch For 2015: Gladstone Land Corp (LAND)
Gladstone Land Corporation, incorporated on March 24, 2011, is an externally-managed real estate company formed to invest in farmland located in agricultural markets throughout the United States. The Company�� farmland is concentrated in locations where tenants are able to grow annual row crops, such as berries, lettuce and melons, among others, which are planted and harvested annually or more frequently. The Company also leases a small parcel on its Oxnard farm to an oil company. In January 2014, the Company acquired a 1,895-acre farm in the Columbia Basin of the Pacific Northwest. On December 27, 2013, the Company acquired a 1,760-acre farm in Willcox, Cochise County, Arizona. Effective January 2, 2014, Gladstone Land Corp acquired an undisclosed farmland located in Oregon.
As of December 27, 2012, the Company�� portfolio of properties consisted of the San Andreas Farm in Watsonville, California; West Gonzales Farm in Oxnard, California; West Beach Farms in Watsonville, California; Dalton Lane Farm in Watsonville, California; Keysville Road Farms in Plant City, Florida; Colding Loop Farm in Wimauma, Florida, and Trapnell Road Farms in Plant City, Florida. As of December 27, 2012, the Company extended the Dalton Lane Farm lease for three years. As of December 27, 2012, the Company in addition to acquiring properties, planned to acquire farmland in exchange for limited partnership units, or units, of Gladstone Land Limited Partnership.
Advisors' Opinion:- [By John Udovich]
Last Friday, small cap Farmland Partners Inc (NYSEMKT: FPI) had an IPO to join Gladstone Land Corp (NASDAQ: LAND), Alico, Inc (NASDAQ: ALCO) and Limoneira Company (NASDAQ: LMNR) as the latest option for retail investors seeking a way to invest in American farmland. After all, there is that old quote attributed to Mark Twain: "Buy land, they're not making it anymore." Moreover, February Wall Street Journal article noted that From 2009 to mid-2013, average prices for agricultural land in the�US rose by half while in Iowa, Nebraska and some other Midwest farm states, prices more than doubled. However, the same article noted that there is mounting evidence that the farmland�boom is fizzling out as�farmland prices in Iowa fell 3% over the second half of last year and those in Nebraska fell 1%. The good news though is that today's agricultural sector looks markedly different than it did during the last farmland bust back in�the early 1980s while Greyson Colvin, the managing partner at investment manager Colvin & Co. (which owns about 7,000 acres of farmland), was quoted as saying: "We think this next 12 months is going to be the best window we've had in the past five years [to invest in farmland].��/p>
- [By Sarah Jones]
Land Securities (LAND) Group Plc, Britain�� largest real estate investment trust, and Persimmon Plc both climbed at least 1.5 percent. Glencore Xstrata Plc led a rally in commodity producers as base metals climbed. HSBC Holdings Plc (HSBA) led declining shares, falling 1.5 percent.
10 Best Japanese Stocks To Watch For 2015: TASER International Inc.(TASR)
TASER International, Inc. develops, manufactures, and sells electronic control devices (ECD) for use in the law enforcement, military, corrections, private security, and personal defense markets. ECDs transmit electrical pulses along the wires and into the body affecting the sensory and motor functions of the peripheral nervous system. Its products for the law enforcement, military, corrections, and professional security market include the TASER X26 product line, which consists of TASER X26, various cartridges, a digital power magazine, data download software and equipment, extended warranties, and a range of holstering options and accessories; TASER X3, a multi-shot ECD that would engage three separate targets; and ADVANCED TASER M26 product line comprising the ADVANCED TASER M26, various cartridges, rechargeable batteries, a battery charging system, data download software and equipment, extended warranties, and various holstering options and accessories. The company also provides TASER XREP, a self-contained, wireless ECD that deploys from a 12-gauge pump-action shotgun; and TASER Shockwave security system for safety and stand-off capability during hostile situations. In addition, it manufactures TASER C2, TASER X26C, and ADVANCED TASER M26C devices for the personal defense market, as well as provides various cartridges and other accessories. The company sells its products worldwide through its direct sales force, distribution partners, online store, and third-party resellers. TASER International, Inc. was founded in 1993 and is headquartered in Scottsdale, Arizona.
Advisors' Opinion:- [By Seth Jayson]
TASER International (Nasdaq: TASR ) reported earnings on April 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), TASER International beat expectations on revenues and beat expectations on earnings per share. - [By Roberto Pedone]
One under-$10 name that's starting to trend within range of triggering a big breakout trade is Taser International (TASR), which develops, manufactures and sells advanced electronic control devices designed for use in law enforcement, military, corrections, private security and personal defense. This stock is off to a slow start in 2013, with shares up 9.7%.
If you take a look at the chart for TASER International, you'll notice that this stock just recently broke out back above its 50-day moving average of $8.99 a share with strong upside volume. Following that move, shares of TASR went on to take out some more near-term overhead resistance levels at $9.05 to $9.30 a share with strong volume. Shares of TASR now look ready to trigger another big breakout trade as the stock flirts with new 52-week highs.
Traders should now look for long-biased trades in TASR if it manages to break out above some near-term overhead resistance levels at $9.80 to its 52-week high at $9.87 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 411,795 shares. If that breakout triggers soon, then TASR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $12 to $15 a share.
Traders can look to buy TASR off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $8.99 a share. One can also buy TASR off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
10 Best Japanese Stocks To Watch For 2015: Kandi Technolgies Corp.(KNDI)
Kandi Technologies Corp., through its subsidiaries, engages in the design, development, manufacture, and commercialization of off-road vehicles, motorcycles, mini-cars, and special automobile related products. Its off-road vehicles include all-terrain vehicles, specialized utility vehicles, and go-karts. The company sells its products through third-party and independent distributors in the People?s Republic of China, Asia, North America, Europe, and Australia. Kandi Technologies Corp. is based in Jinhua, the People?s Republic of China.
Advisors' Opinion:- [By Eddie Staley]
Shares of Kandi Technolgies Group (NASDAQ: KNDI) got a boost, shooting up 20.24 percent to $17.70 on report of a 238% rise in EV sales.
URS (NYSE: URS) shares were also up, gaining 11.76 percent to $58.14 after Aecom Technology (NYSE: ACM) announced its plans to buy URS for $4 billion in cash and stock.
- [By Jake L'Ecuyer]
Top decliners in the sector included Fossil Group (NASDAQ: FOSL), down 8.2 percent, and Kandi Technolgies Group (NASDAQ: KNDI), off 4.4 percent.
Top Headline
Macy's (NYSE: M) reported a rise in its first-quarter earnings. Macy's reaffirmed its outlook for the full year. It also increased its share-buyback plan by $1.5 billion and lifted its dividend by 25% to 31.25 cents per share. Macy's posted a quarterly profit of $224 million, or $0.60 per share, versus a year-ago profit of $217 million, or $0.55 per share. Its revenue slipped 1.7% to $6.28 billion. However, analysts were expecting earnings of $0.59 per share on revenue of $6.46 billion. Its revenue at stores open at least a year dropped 0.8%.
10 Best Japanese Stocks To Watch For 2015: JTH Holding Inc (TAX)
JTH Holding, Inc. (JTH Holding), incorporated in September 2010, is a holding company engaged through its subsidiaries as a franchisor and operator of a system of income tax preparation offices located in the United States and Canada. The Company is a retail preparer of individual tax returns. JTH Holding's principal operations are conducted through its subsidiary, JTH Tax, Inc. (JTH Tax). Through this system of income tax preparation offices, JTH Holding also facilitates to its customer refund-based tax settlement financial products, such as refund anticipation loans, electronic refund checks, and personal income tax refund discounting. On September 30, 2010, JTH Tax entered into an Agreement of Merger and Plan of Reorganization with JTH Holding. At the closing of the merger on September 30, 2010, JTH Tax merged with and became a wholly owned subsidiary of JTH Holding.
As of September 2, 2011 (fiscal 2011), the Company had 3,900 tax offices and the number of United States tax returns prepared in its offices is approximately 1.7 million. The Company provides its customers with value-added federal and state tax preparation services and related financial products both in retail offices and online. During fiscal 2011, the Company and its franchisees operated 3,590 offices in the United States in tax season. Approximately 63% of its revenue for fiscal 2011 was derived from franchise fees, royalties and advertising fees. During fiscal 2011, during tax season its online customers prepared approximately 98,000 tax returns using its online tax offering, eSmartTax.
The Company earns franchisee fees from its franchisees and advertisements (Ads). The Company offers its franchisees structures and financing options for franchise fees and royalty payments. The Company earns royalty revenue from its franchisees. Its franchise agreement requires franchisees to pay the Company a base royalty equal to 14% of the franchisee's tax preparation revenue, subject to certain specified minimums. Fran! chisees acquiring territories under its no franchise fee alternative will be required to pay it franchise royalties of 25% through their first five tax seasons, and thereafter 14% of their tax preparation revenue. The Company earns advertising fee revenue from its franchisees. Its franchise agreement requires all franchisees to pay the Company an advertising fee of 5% of the franchisee's tax preparation revenue.
The Company offers two types of financial products: refund transfer products, such as electronic refund checks (ERCs), which involve providing a means by which a customer may receive his or her refund, and refund-based loans, such as refund anticipation loans (RALs) and instant cash advances (ICAs). The Company earns fees from the use of these financial products. The Company also earns tax preparation revenue directly from both the operation of company-owned offices and the provision of tax preparation services through its eSmartTax online product.
Advisors' Opinion:- [By John Udovich]
April 15th is tax day and tax preparer stocks like small cap�JTH Holding Inc (NASDAQ: TAX), mid cap�H & R Block Inc (NYSE: HRB) and large cap�Intuit Inc (NASDAQ: INTU) help millions of Americans to figure out just how much they owe to ��ig brother.��But which of these tax preparation stocks is the best investment for investors looking for a way to offset that tax bite? First, here is a quick overview of�each tax preparer:
- [By Dan Caplinger]
H&R Block (NYSE: HRB ) will release its quarterly report on Tuesday, and as you'd expect outside of tax season, the tax-preparation company will almost certainly post a sizable loss. But the bigger question investors want answered is whether H&R Block can meet the long-term threat of Intuit (NASDAQ: INTU ) and its TurboTax software on one end, as well as the live tax-preparation competition of JTH Holdings' (NASDAQ: TAX ) and its Liberty Tax Service chain.
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