While the e-commerce revolution is disrupting many traditional brick-and-mortar retailers, there are still some "physical" retailers that continue to show solid growth. Two particularly promising investment opportunities in this vein are Nordstrom (NYSE: JWN ) and TJX (NYSE: TJX ) . Both companies are well positioned within their sectors, and see the rise of e-commerce as an opportunity rather than a threat.
Nordstrom: Service wins
Nordstrom sits in a privileged place relative to many brick-and-mortar retailers, insofar as most of its business consists of selling apparel and shoes. Since customers usually want to try on clothing before making a purchase decision, online competitors cannot serve the market as well as brick-and-mortar stores.
Moreover, Nordstrom is known for its exceptional customer service. Employees try to make personal connections with customers and the company prides itself on a "customer is always right" mentality. This is critical, because as an upscale department store it caters to a wealthy clientele who expect superior service.
Best Specialty Retail Companies To Own For 2015: CYS Investments Inc (CYS)
CYS Investments, Inc. is a specialty finance company created with the objective of achieving consistent risk-adjusted investment income. The Company invests in Agency residential mortgage-backed securities (RMBS) collateralized by fixed rate single-family residential mortgage loans (typically 15, 20 or 30 years), adjustable-rate mortgage loans (ARMs), which typically have coupon rates that reset monthly, or hybrid ARMs, which typically have a coupon rate that is fixed for an initial period (typically three, five, seven or 10 years) and thereafter resets at regular intervals. In addition, its investment guidelines permit investments in collateralized mortgage obligations issued by a government agency or government-sponsored entity that are collateralized by Agency RMBS (CMOs), although the Company had not invested in any CMOs as of December 31, 2011.
The Company finances its Agency RMBS investments using a diversified approach involving repurchase agreements with multiple commercial and investment banks. Agency RMBS are residential mortgage pass-through securities, the principal and interest of which are guaranteed by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) or the Government National Mortgage Association (Ginnie Mae). Its portfolio of Agency RMBS is backed by fixed rate mortgages and hybrid ARMs that typically have a fixed coupon for three, five or seven years, and then pay an adjustable coupon that generally resets annually over a predetermined interest rate index. As of December 31, 2011, its Agency RMBS portfolio consisted of 10 Year Fixed Rate, 15 Year Fixed Rate, 20 Year Fixed Rate, 30 Year Fixed Rate and Hybrid ARMs. On September 1, 2011, the Company acquired certain assets and entered into agreements to internalize its management (the Internalization).
Advisors' Opinion:- [By Amanda Alix]
As the spread between short-term and long-term�interest rates began to contract, strangling profits, competition for MBSes also caused prices to rise. Other agency mREITs were nervous, too. CYS Investments (NYSE: CYS ) noted at the time that QE3 turned the Federal Reserve into the sector's biggest rival for mortgage bonds, and as spreads began to shrink, so did dividends. By December of last year, Annaly, Armour, and Capstead Mortgage (NYSE: CMO ) had all trimmed their payouts.
- [By Dan Caplinger]
On Wednesday, CYS Investments (NYSE: CYS ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.
Top 10 Promising Companies To Watch In Right Now: The Cheesecake Factory Incorporated(CAKE)
The Cheesecake Factory Incorporated operates upscale, casual, full-service dining restaurants in the United States. As of February 23, 2012, the company operated 170 dining restaurants, including 156 restaurants under The Cheesecake Factory mark in 35 states and the District of Columbia; 13 restaurants under the Grand Lux Cafe mark in 9 states; and 1 restaurant under the RockSugar Pan Asian Kitchen mark in California. It also owns and operates two bakery production facilities located in Calabasas Hills, California; and Rocky Mount, North Carolina. The company produces baked desserts and other products for its restaurants, as well as sells cheesecakes and other baked products on a wholesale basis to other foodservice operators, retailers, and distributors. The Cheesecake Factory Incorporated was founded in 1972 and is based in Calabasas Hills, California.
Advisors' Opinion:- [By Alex Planes]
Longtime Fool contributor Rick Munarriz thinks that Krispy Kreme is part of the leading edge of junk food franchises that Americans have gravitated toward, in spite of health warnings and the persistent sirens of an obesity crisis. Cheesecake Factory (NASDAQ: CAKE ) , another franchise known for its unhealthy baked goods, is also growing quickly. It hasn't gained as much as Krispy Kreme, but it hasn't had to start from such a low point, either. There remains a certain prestige in being "the treat franchise," and Krispy Kreme embodies this better than Dunkin -- at least from this writer's humble perspective.
- [By Shaun Currie, CFA]
To give a background on the real estate market, construction is mostly being done on the high end. Because of this, landlords want high-end concepts. BBRG management noted that it (along with The Cheesecake Factory (CAKE)) basically gets first crack at every new development project. Management said it is now reviewing 70-80 locations annually to pick 8-10 new locations per year. Management also noted that there could be some upside in the near term to the 8-10 location target.
Top 10 Promising Companies To Watch In Right Now: Micromem Technologies Inc (MMTIF)
Micromem Technologies Inc. (Micromem), incorporated on October 21, 1985, is a development-stage company. The Company is engaged in the development of memory technology that has the characteristics of non-volatility, which is the ability to retain information after power has been shut off. The Company is focused on magnetic sensor applications. The Company is focused on research and development of nano-magnetic random access memory (MRAM). Micromem operates in a single segment as a developer of non-volatile magnetic memory and sensor technology. The Company partners with industry to manufacture.
The Company�� technology is based on the ability to use magnetic materials in combination with a sensor to record the state of magnetization. Each magnetic element stores one bit of data based on its ability to alternate between states of magnetic polarization, which states are determined by a sensor.
The Company competes with IBM.
Advisors' Opinion:- [By Peter Graham]
At the end of last week, small cap stocks Senesco Technologies, Inc (OTCBB: SNTI), VolitionRX Ltd (OTCMKTS: VNRX) and Micromem Technologies Inc (OTCBB: MMTIF) were all trending upwards ��ending up 13.65%, 8.73% and 7.61%, respectively, on Friday. However, it�� a new trading week with the last two trading days for the year. So what direction will these three small caps head in for the end of this year and into next year? Here is a quick look to help you decide on a trading or investment strategy:
Top 10 Promising Companies To Watch In Right Now: PIMCO Intermediate Municipal Bond Strategy Fund (MUNI)
PIMCO Intermediate Municipal Bond Strategy Fund, formerly, PIMCO Intermediate Municipal Bond ETF (the Fund), seeks to achieve its investment objective by investing at least 80% of its assets in a diversified portfolio of debt securities whose interest is, in the opinion of bond counsel for the issuer at the time of issuance, exempt from federal income tax (Municipal Bonds). Municipal Bonds are issued by or on behalf of states and local governments and their agencies, authorities and other instrumentalities. The Fund may only invest in the United States dollar-denominated investment grade debt securities, rated Baa or higher by Moody��, or equivalently rated by S&P or Fitch. It may invest 25% or more of its total assets in Municipal Bonds that finance similar projects, such as those relating to education, health care, housing, transportation and utilities. The Fund�� investment advisor is Pacific Investment Management Company LLC (PIMCO). Advisors' Opinion:- [By Mary Anne & Pamela Aden]
The ones we like best and recommend buying are the iShares 20+ year Treasury Bond (TLT), the iShares 10-20 year Treasury Bond (TLH), Proshares Ultra 20+ year Treasury (UBT) and Pimco Intermediate Muni Bond strategy ETF (MUNI).
Top 10 Promising Companies To Watch In Right Now: First Connecticut Bancorp Inc (FBNK)
First Connecticut Bancorp, Inc. (FCB) is a stock holding company. FCB has been formed in connection with the conversion of First Connecticut Bancorp, Inc. a mutual holding company (MHC), from the mutual to the stock form of organization. As of December 31, 2009, MHC owned all of the outstanding stock of Farmington Bank, a savings bank. The MHC will cease to exist as a result of the conversion, and FCB will own all of the common stock of Farmington Bank. As of December 31, 2009, FCB was not engaged in any business. Farmington Bank is a full-service, community bank with 15 full-service branch offices and four limited service offices, including its main office, located throughout Hartford County, Connecticut.
Farmington Bank provides a diverse range of commercial and consumer services to businesses, individuals and governments across Central Connecticut. Farmington Bank provides a range of banking services to businesses, individuals and governments in Central Connecticut. It also offers a range of residential mortgage loan services. Farmington Bank�� subsidiaries include Farmington Savings Loan Servicing, Inc., Village Investments, Inc., Village Corp., Limited, 28 Main Street Corp., Village Management Corp. and Village Square Holdings Inc.
Farmington Savings Loan Servicing, Inc. operates as Farmington Bank�� passive investment company (PIC). Village Investments, Inc. offers brokerage and investment advisory services through a contract with Infinex Financial Services, a registered broker-dealer. Village Corp., Limited was established to hold certain commercial real estate acquired through foreclosures, deeds in lieu of foreclosure, or other similar means. Village Square Holdings, Inc. holds certain commercial real estate of Farmington Bank, formerly used as Farmington Bank�� operations center prior to its relocation to One Farm Glen Boulevard, Farmington, Connecticut. As of December 31, 2009, 28 Main Street Corp and Village Management Corp were inactive.
Len! ding Activities
Farmington Bank�� primary lending activities consists of the origination of one-to-four family residential real estate loans that are primarily secured by properties located in Hartford County and surrounding counties in Connecticut. During the year ended December 31, 2009, the Bank originated $75.8 million of fixed-rate one-to-four family residential loans. The Bank also offers adjustable-rate mortgage loans for one-to-four family properties, with an interest rate that adjusts annually based on the one-year Constant Maturity Treasury Bill Index, after a one, three, four, five, seven or nine-year initial fixed-rate period. Its adjustable rate mortgage loans generally provide for maximum rate adjustments of 200 basis points per adjustment, with a lifetime maximum adjustment up to 6%, regardless of the initial rate. Its adjustable rate mortgage loans amortize over terms of up to 30 years. During 2009, it originated $49.2 million adjustable rate one-to-four family residential loans and purchased $33 million adjustable rate mortgages.
Farmington Bank originates commercial real estate loans and loans on owner-occupied properties used for a variety of business purposes, including office buildings, industrial and warehouse facilities and retail facilities. As of December 31, 2009, the Bank�� owner-occupied commercial mortgage loans constituted the largest portion of its commercial real estate portfolio. During 2009, commercial mortgage loans totaled $265.5 million and owner-occupied commercial real estate loans totaled $133.3 million of its commercial real estate portfolio.
Farmington Bank offers construction loans, including commercial construction loans and real estate subdivision development loans, to developers, licensed contractors and builders for the construction and development of commercial real estate projects and residential properties. During 2009, the Bank�� loans outstanding, including commercial and residential, totaled $68.7 million! . The Ban! k also originates construction loans to individuals and contractors for the construction and acquisition of personal residences.
Farmington Bank�� commercial business loan portfolio comprises both middle market companies and small businesses located primarily in Connecticut. Farmington Bank�� Resort (Timeshare) Loans include receivables loans, pre-sale loans, inventory loans, acquisition and development loans, and homeowner association loans. During 2009, its timeshare loans totaled $82.8 million. Farmington Bank also offers home equity loans and home equity lines of credit, both of which are secured by owner-occupied one-to-four family residences. At December 31, 2009, home equity loans and equity lines of credit totaled $66.7 million.
Farmington Bank also offers various types of consumer loans, including installment, demand, revolving credit and collateral loans, principally to customers residing in its primary market area with acceptable credit ratings. Its installment and collateral consumer loans generally consist of loans on new and used automobiles, loans collateralized by deposit accounts and unsecured personal loans.
Advisors' Opinion:- [By CRWE]
First Connecticut Bancorp, Inc. (Nasdaq:FBNK) reported that its Board of Directors has voted to pay a cash dividend in the amount of $0.03 per share on June 14, 2012 to all shareholders of record as of June 4, 2012.
Top 10 Promising Companies To Watch In Right Now: BJ's Restaurants Inc.(BJRI)
BJ?s Restaurants, Inc. owns and operates casual dining restaurants in the Unites States. The company operates restaurants under the BJ?s Restaurant & Brewery, BJ?s Restaurant & Brewhouse, BJ?s Pizza & Grill, or BJ?s Grill names, which offer deep-dish pizzas, handcrafted beers, appetizers, entrees, pastas, sandwiches, specialty salads, desserts, non-alcoholic beverages, wine, other craft beers, and spirits. As of February 27, 2012, it owned and operated 116 restaurants comprising 10 BJ?s Restaurant & Brewery restaurants, 98 BJ?s Restaurant & Brewhouse restaurants, 7 BJ?s Pizza & Grill restaurants, and 1 BJ?s Grill. The company operates restaurants in California, Texas, Arizona, Colorado, Oregon, Nevada, Florida, Ohio, Oklahoma, Kentucky, Indiana, Louisiana, and Washington. BJ?s Restaurants, Inc. was founded in 1991 and is based in Huntington Beach, California.
Advisors' Opinion:- [By John Kell]
BJ's Restaurants Inc.(BJRI) issued muted preliminary fourth-quarter results, as the company said it was hurt by weaker traffic and higher promotions. Shares dropped 12% to $26.75 premarket.
- [By Jake L'Ecuyer]
Equities Trading UP
Sangamo Biosciences (NASDAQ: SGMO) shot up 16.32 percent to $22.81 announced the publication in the NEJM of the first-in-man study of genome editing using its ZFN technology. Shares of Agios Pharmaceuticals (NASDAQ: AGIO) got a boost, shooting up 27.72 percent to $40.41 after the company reported quarterly results. BJ's (NASDAQ: BJRI) was also up, gaining 21.04 percent to $33.48 after the company was upgraded toa Buy rating at Buckingham research. - [By Steve Symington]
More closely aligned with B-Wild's new efforts, however, are the folks at BJ's Restaurants (NASDAQ: BJRI ) , who just so happen to integrate their very own enviable list of more than a dozen of BJ's award-winning, handcrafted brews on tap at each of their restaurants. All told, craft brews have served as a centerpiece of BJ's business so far, helping the up-and-coming company to grow to 132 locations in 15 states as of the end of last quarter.
- [By Jake L'Ecuyer]
BJ's Restaurants (NASDAQ: BJRI) was down, falling 8.21 percent to $26.61 on Q4 results.
Commodities
In commodity news, oil traded down 0.15 percent to $103.15, while gold traded down 0.36 percent to $1,315.60.
Top 10 Promising Companies To Watch In Right Now: Oriental Financial Group Inc.(OFG)
Oriental Financial Group Inc., a financial holding company, provides various banking and financial services to mid and high net worth individuals, and families, including professionals and owners of small and mid-sized businesses primarily in Puerto Rico. It operates in three segments: Banking, Wealth Management, and Treasury. The Banking segment offers commercial and consumer lending, saving and time deposit products, financial planning, and corporate and individual trust services. It also provides mortgage lending products that include the origination and purchase of residential mortgage loans. As of October 25, 2011, this segment operated 30 branches in Puerto Rico. The Wealth Management segment offers securities brokerage, trust services, retirement planning, insurance, pension administration, and other wealth management services. Its securities brokerage services include various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, sto cks, and bonds to retail and institutional clients. This segment also provides public offerings and private placements of debt and equity securities, underwriting, and merger and acquisition and financial restructuring advisory services. In addition, it engages in insurance agency services and administration of retirement plans in the United States, Puerto Rico, and the Caribbean. The Treasury segment is involved in various treasury related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, Puerto Rico government and agency obligations, structured credit investments, and money market instruments. The company was founded in 1964 and is based in San Juan, Puerto Rico.
Advisors' Opinion:- [By John Udovich]
For investors looking for exposure to the US commonwealth of Puerto Rico, banking stocks Doral Financial Corp (NYSE: DRL), First Bancorp (NYSE: FBP), OFG Bancorp (NYSE: OFG) and Popular Inc (NASDAQ: BPOP) offer the best bet as these Puerto Rico stocks trade on major US exchanges rather than the OTC. However, it should be mentioned that there has been a slowdown in Puerto Rico�� economy which has also shrunk in five of the past seven fiscal years. Then last�February, Puerto Rico�� debt was cut to speculative grade by the three largest credit-rating companies while�Governor Alejandro Garcia Padilla has proposed a series of budget cuts to help tackle the island�� mounting debt load -including the freezing public workers��salaries and the closing about 100 schools.
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