Each week, I endeavor to report the results of the Big Idea Portfolio, a collection of five tech stocks that I believe will crush the market over a three-year period. I've done it before; my last tussle with Mr. Market ended with me beating the index's average return by 13.35%.
Real money was on the line then as it is now, which means any one of the five stocks you see below could tip the scales in my favor. This time, Rackspace Hosting (NYSE: RAX ) , once one of my portfolio's top stocks, plummeted 26% after reporting an earnings miss and subpar guidance.
Revenue grew an impressive 20% year over year to $362 million, but that still came in $5 million below analyst targets. The cloud computing company's Q2 sales target also came in lower than Wall Street was hoping for.
In a post-report interview, Rackspace Director of Finance Bryan McGrath explained that Rackspace failed to pay enough attention to its oldest clients: those who pay for the company to host dedicated types of equipment for specific and complex jobs. These engagements require more time and investment by staff, but they also account for about 75% of revenue.
Top 5 Up And Coming Companies To Buy For 2015: Level 3 Communications Inc.(LVLT)
Level 3 Communications, Inc. engages in the communications business in North America and Europe. It offers network and Internet services, including transport services, high speed Internet protocol services, dedicated Internet access, virtual private network services, and dark fiber services, as well as managed modem, an outsourced, turn-key infrastructure solution; and colocation services. The company also provides various media services, comprising Vyvx services that provide audio and video feeds over fiber or satellite; content delivery network services; media delivery services to customers seeking to manage, protect, and monetize content delivered over the Internet; a range of local and long distance voice services, such as voice over Internet protocol (VoIP) and traditional circuit-switch based services; and VoIP Enhanced Local, a VoIP service that enables broadband cable operators, IXCs, VoIP providers, and other companies operating their own switching infrastructure to launch IP-based local and long-distance voice services through a broadband connection. Level 3 Communications? media services also consist of SIP Trunking, a VoIP-based local phone service; Local Inbound service that terminates traditional telephone network originated calls to Internet Protocol termination points; Primary Rate Interface, a TDM local phone service that could be configured in various ways; Long Distance services portfolio comprising local and long distance transport and termination services; and Toll Free services portfolio, which terminate toll free calls that are originated on the traditional telephone network. As of December 31, 2010, its network encompassed approximately 68,000 intercity route miles in North America and an intercity network covering approximately 13,000 miles across Europe. Further, it sells coal primarily through long-term contracts with public utilities. The company was founded in 1884 and is headquartered in Broomfield, Colorado.
Advisors' Opinion:- [By Seth Jayson]
Level 3 Communications (NYSE: LVLT ) is expected to report Q2 earnings on July 31. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Level 3 Communications's revenues will expand 0.2% and EPS will remain in the red. - [By Jake L'Ecuyer]
Level 3 Communications (NYSE: LVLT) was also up, gaining 9.52 percent to $34.39 on Q4 results.
Equities Trading DOWN
Shares of 3D Systems (NYSE: DDD) were down 14.04 percent to $65.14 after the company lowered its quarterly earnings outlook.
Top 5 Up And Coming Companies To Buy For 2015: Ocado Group PLC (OCDO)
Ocado Group plc is a United Kingdom-based holding company. The Company�� principal activities are the retailing, logistics and distribution of grocery and consumer goods and the development and monetisation of intellectual property and technology for the online retailing, logistics and distribution of these goods. The Company is an online grocery retailer. The Company�� subsidiaries include Ocado Holdings Limited, Ocado Limited, Ocado Information Technology Limited, Last Mile Developments Limited and Last Mile Developments Limited. Advisors' Opinion:- [By Sarah Jones]
Rio Tinto Group and Anglo American Plc (AAL) retreated more than 2.5 percent as copper and lead declined. Eurasian Natural Resources Corp. (ENRC) sank 6.8 percent as analysts downgraded the shares. Standard Life Plc slipped 1.2 percent as Chief Financial Officer Jackie Hunt resigned to move to a rival insurer. Ocado Group Plc (OCDO) fell for the first day this week as the online grocer ruled out a takeover by William Morrison Supermarkets Plc.
Hot India Companies For 2015: Washington Real Estate Investment Trust(WRE)
Washington Real Estate Investment Trust is an equity real estate investment trust (REIT). The company engages in the ownership, operation, and development of real properties. The firm invests in real estate markets of the greater Washington D.C. metro region. It focuses on office, medical office, industrial/flex space, retail, and multifamily real estate investments. Washington Real Estate Investment Trust was founded in 1960 and is based in Rockville, Maryland.
Advisors' Opinion:- [By Rich Duprey]
Commercial and residential income-producing property REIT�Washington Real Estate Investment Trust (NYSE: WRE ) announced yesterday its third-quarter dividend of $0.30 per share, the same rate it's paid for the past four quarters.
Top 5 Up And Coming Companies To Buy For 2015: SG Spirit Gold Inc (SG&A)
SG Spirit Gold Inc. (SG Spirit Gold) is an exploration-stage company. As of December 31, 2011, SG Spirit Gold is focused on the acquisition and subsequent development of the Buchans Property and Bobby's Pond property located in Central Newfoundland. As of December 31, 2011, the Company has 100% interest in approximately 46,000 hectares of mineral tenure in southern BC. PJX Resources Inc. The Buchans area properties contain 512 claims totaling 13,433 hectares, including the former producing Buchans Mine - one of Canada's base metal mines, which produced 16.2 million tons between 1928 and 1984, grading 14.51% zinc, 1.33% copper, 7.56% lead, 126 gram/ton silver and 1.37 gram/ton gold. The Daniel's Pond is located within the Tulks North property, in the same mineral belt as Messina Minerals' Boomerang deposit. Bobby's Pond is located 20 kilometers west by road from Teck's Duck Pond mine. It has several properties within the Hughes Range of the western Rocky Mountains. Advisors' Opinion:- [By Magic Diligence]
Kraft inserts the valuation effects of its pension plans directly into its income statement, embedded within the cost of sales and selling, general and administrative (SG&A) line items. This has a significant effect on operating earnings and earnings per share, effects which most screeners do not (and can not) take into account.
Top 5 Up And Coming Companies To Buy For 2015: Bank Of Montreal (BMO)
Bank of Montreal, together with its subsidiaries, provides a range of retail banking, wealth management, and investment banking products and solutions in North America and internationally. It offers personal banking products and services to consumers and small businesses, including deposit and investment services, mortgages, consumer credit, small business lending, and other banking services; and commercial banking products and services to small business, medium-sized enterprise, and mid-market banking clients comprising lending, deposits, treasury management, and risk management services. The company also offers cards and payments services; investment and wealth advisory services; self-directed investing services; private banking services to high net worth and ultra-high net worth clients; investment fund solutions across a range of channels; pension plans; investment management services; and creditor insurance, and life insurance and annuity products and services. In add ition, it provides capital markets products and services, including equity and debt underwriting, corporate lending and project financing, mergers and acquisitions, restructurings and recapitalizations, balance sheet management, liquidity management, merchant banking, securitization, foreign exchange, derivatives, debt and equity research, and institutional sales and trading to corporate, institutional, and government clients. As of October 31, 2010, Bank of Montreal operated and maintained approximately 1,230 bank branches in Canada and the United States. The company was founded in 1817 and is headquartered in Toronto, Canada.
Advisors' Opinion:- [By Alyssa Oursler]
Head north of the border and you’ll come across Bank of Montreal (BMO), our final safe income pick. If you were impressed by Chevron’s century of dividend payments, consider this: BMO has been rewarding loyal shareholders since 1829. For perspective, remember that the U.S. was just over 50 years old at that time.
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