Mediaboss Marketing

LONDON (ShareCast) - -JP Morgan suggests ECB rate cut, LTRO restart -EU leaders make little progress -UK contracts more than expected in Q1 An underwhelming EU summit and a barrage of disappointing economic figures failed to hold back gains on Thursday, as the Footsie (FTSE: ^FTSE - news) rebounded following yesterday's steep sell-off. Comments from JP Morgan boosted buying late on after the US bank said in a research note that the European Central Bank (ECB) is likely to react to the ongoing crisis by cutting interest rates and launching another round of cheap funding operations (otherwise known as LTROs). Given the economic data released today, "the ECB will feel more pressure to deliver a monetary response, even though it feels that it has already done a lot to support the region. This response could, for example, be done through interest rate cuts or through further liquidity measures," analyst Greg Fuzesi said. There was also speculation that the EU could look at increasing the resources of the European Investment Bank to bolster investment in infrastructure. Meanwhile, the outcome of last night's informal meeting of the European Council was as expected, with leaders reiterating their stance that they want to keep Greece in the Eurozone as long as it meets the terms of its bailout. The 'eurobonds' issue was a contentious topic, with French and German leaders clashing over the joint debt sales. Several economic reports from home and abroad disappointed today - though that wasn't seen in equity markets - painting a gloomy picture of the global economy: Chinese manufacturing slipped further into contraction; Germany's IFO business index fell sharply; while purchasing managers' indices across the Eurozone came in weak. In the UK, the Office for National Statistics revealed that first-quarter estimate of gross domestic product was revised lower, from -0.2% to -0.3%. Economists had been expecting the initial reading to be confirmed. Economic data from the US was a little better though, helping Wall Street stocks broadly higher after the opening bell; both durable orders and jobless claims data were in line with consensus expectations. FTSE 100 (Euronext: VFTSE.NX - news) : Resources (Euronext: ERS.NX - news) stocks gain as gold and oil prices advance

Randgold Resources (Xetra: A0B5ZS - news) surged today, tracking gold prices higher. Data from the International Monetary Fund (IMF (Berlin: MXG1.BE - news) ) showed today that central banks in Turkey, Ukraine, Mexico and Kazakhstan were building their positions in the precious metal in April on the back of its safe-haven appeal. Stocks in the oil sector were also making gains today as crude prices picked up after the P5+1 group of world powers - China, France, Germany, Russia, UK and US - continued to argue with Iran over its nuclear programme. Oil and gas E&P peers BP and BG Group (Hamburg: BGO.HM - news) were among the best performers, both gaining around 3%; oil services firm Amec (LSE: AMEC.L - news) was also wanted. Shell (LSE: RDSB.L - news) was on the up after extending the offer deadline for AIM-listed Cove Energy (Berlin: LPC.BE - news) after its previously recommended offer was trumped by Thai firm PTT Exploration and Production (PTTEP) on Wednesday. "With the Euro crisis set to continue, at least until June 17th when the second round of Greek elections will be held, we can expect to see Oil and Gold fall further as the dollar is expected to continue to appreciate making all dollar priced commodities effectively more expensive," said analyst Craig Erlam from Alpari. United Utilities was higher after saying that it has seen a marked improvement in customer satisfaction in the last year or so, and it is on track to meet regulatory out-performance targets. Financial stocks, having borne the brunt of risk aversion in yesterday's session, were performing well today. Barclays (LSE: BARC.L - news) , Admiral (LSE: ADM.L - news) , Royal Bank of Scotland (LSE: RBS.L - news) and HSBC (LSE: HSBA.L - news) were making gains, while Standard Chartered (Xetra: 859123 - news) was lifted higher after JP Morgan reiterated its overweight rating on the stock. FTSE 250 (FTSE: ^FTMC - news) : C&W Comms surges after full-year results

International mobile operator Cable & Wireless Communications rocketed after underlying earnings came in at $901m in the year to the end of March, better than the $887m estimate. Investors didn't seem too phased that the group expects to halve its dividend in the current year. Food wholesaler Booker was also in demand after saying that increased customer numbers and higher internet sales helped revenue increase by 7.3% in the 52 weeks to March 23rd. FTSE 100 - Risers Randgold Resources Ltd. (RRS) 5,170.00p +8.00% Vedanta Resources (EUREX: VR9F.EX - news) (VED) 999.50p +5.04% Prudential (LSE: PRU.L - news) (PRU) 686.00p +3.39% BP (BP.) 407.00p +3.33% BG Group (BG.) 1,269.00p +3.21% Wolseley (Berlin: WLY1.BE - news) (WOS) 2,272.00p +2.95% United Utilities Group (UU.) 637.00p +2.74% Fresnillo (Frankfurt: A0MVZE - news) (FRES) 1,347.00p +2.67% Barclays (BARC) 185.30p +2.66% ARM Holdings (LSE: ARM.L - news) (ARM) 495.20p +2.65% FTSE 100 - Fallers Rexam (Xetra: 860000 - news) (REX) 393.90p -1.33% Aberdeen Asset Management (ADN) 238.40p -1.20% IMI (Xetra: 389425.DE - news) (IMI (EUREX: IMIF.EX - news) ) 894.00p -1.16% Hargreaves Lansdown (HL (Shenzhen: 002105.SZ - news) .) 466.10p -0.68% Evraz (EVR) 308.70p -0.61% Man Group (LSE: EMG.L - news) (EMG) 72.70p -0.55% GKN (Xetra: 694194 - news) (GKN (LSE: GKN.L - news) ) 183.20p -0.49% Antofagasta (Xetra: 867578 - news) (ANTO) 1,027.00p -0.48% Reckitt Benckiser Group (RB.) 3,380.00p -0.32% Burberry Group (LSE: BRBY.L - news) (BRBY) 1,365.00p -0.29% FTSE 250 - Risers Cable & Wireless Communications (CWC) 33.01p +17.64% Booker Group (BOK) 78.45p +7.47% Petra Diamonds Ltd.(DI) (PDL) 135.10p +4.89% Hunting (LSE: HTG.L - news) (HTG) 785.00p +4.67% QinetiQ Group (Other OTC: QNTQF.PK - news) (QQ.) 152.00p +4.61% Domino's Pizza UK & IRL (DOM) 475.30p +4.21% Dunelm Group (Berlin: DFQ.BE - news) (DNLM) 505.00p +4.12% TR Property Inv Trust (TRY) 146.20p +3.91% Investec (Frankfurt: A0J32R - news) (INVP) 325.90p +3.62% RPS Group (Frankfurt: 874849 - news) (RPS) 206.30p +3.36% FTSE 250 - Fallers Homeserve (Dusseldorf: XHSA.DU - news) (HSV) 144.00p -4.70% Aquarius Platinum Ltd. (AQP) 72.20p -3.48% Spirit Pub Company (SPRT) 50.25p -3.37% COLT Group SA (COLT) 114.90p -3.20% Home Retail Group (EUREX: HOMF.EX - news) (HOME) 75.40p -3.08% Ocado Group (Xetra: A1C2GZ - news) (OCDO) 104.70p -2.88% Bumi (BUMI) 398.90p -2.45% PZ Cussons (LSE: PZC.L - news) (PZC) 316.80p -2.34% Kesa Electricals (Other OTC: KESAF.PK - news) (KESA) 49.03p -2.33% Redrow (Xetra: 906188 - news) (RDW) 112.20p -2.18% BC

Read the original post:
London close: Stocks surge as JPMorgan hints at ECB stimulus

Forget bonds, smart investors today want dividends.

The reason is simple -- with the Federal Reserve continuing to stomp on interest rates, the yields that investors can get from dividend-paying stocks are better than the yields they can get from even longer-duration Treasury notes.

This week, Bespoke Investment Group noted:

With the 10-Year US Treasury now yielding 1.74%, it is now paying a coupon that is less than the dividend yield of more than half of the stocks in the S&P 500. As of today's close, there are now 271 stocks in the S&P 500 that have a greater yield than the 10-Year US Treasury.

While that may sound notable on its own, consider this: When looking at the S&P 500's overall yield, prior to the 2008/2009 crash, we have to go all the way back to 1958 to find the last time that the S&P yield was greater than long-term Treasury yields. This isn't an opportunity that comes around very often.

And remember that while the dividend payouts for many S&P 500 companies will continue to grow as the companies' profits grow, the payout that you'll get from a Treasury note stays fixed.

Big, giant yields! The first place that many investors head when they are thinking dividends is the biggest, fattest dividends out there. And, let me tell you, there are some seriously plump payouts in the S&P 500 right now.

Telecom companies in particular light up the radar for investors looking for huge payouts as Frontier Communications (Nasdaq: FTR) , Windstream (Nasdaq: WIN) , and CenturyLink sport respective yields of 11.9%, 10.5%, and 7.5%.

While these aren't on the top of my buy list, there are solid arguments to be made in their favor. For instance, while land-line telephone service may not be nearly the business it once was, the broadband Internet services that these companies also provide are indispensable for most consumers and businesses these days. And even a quick glance at my favorite financial statement -- the cash flow statement -- shows that these companies absolutely gush cash.

That said, these aren't growth businesses. The major avenue for growth in the industry is via acquisition. And even so, there may be a greater possibility of dividends decreasing than increasing. Frontier's annual payout was $1 per share in 2009, but today it's $0.40. And according to data from S&P Capital IQ, Windstream hasn't increased its dividend since 2007.

Visit link:
3 Dividend Stocks That Make Bonds Look Silly

It has been quite a ride for a fund composed of the market's tamest stocks.

But now, just as imitators are proliferating, some experts think this popular exchanged-traded fund could be sinking back to earth.

The ETF, PowerShares S&P 500 Low Volatility, is loaded with stocks any grandparent could love: Kellogg, Coca-Cola (KO) and Procter & Gamble (PG), among others. And this stodgy-seeming play is the hottest ETF to hit the market in the past year.

Since its inception last May, investors have added $1.6 billion to the fund, more than any of the roughly 400 ETFs that debuted since the start of 2011.

The fund is supported by a growing body of academic and industry research that indicates a classic Wall Street paradigm -- that buying safe, well-established companies means sacrificing long-term gains -- is false.

Advocates say the research shows that investors in the least volatile stocks would have fared as well or better than those who put their faith in riskier names, suggesting that many of the market's most gut-wrenching ups and downs are unnecessary punishment.

"You get a win-win" by sticking with safer companies, says Ben Fulton, head of ETFs at Invesco (IVZ)'s PowerShares unit.

There now are 14 different funds that bill themselves as low-volatility or low-beta, an industry term that indicates volatility.

During its short life, the PowerShares fund has handily beaten market benchmarks, returning about 9.5%, versus a 0.7% loss for the Standard & Poor's 500 over the same period.

But there already are signs its luck has turned. Amid this year's rally, the fund's lead over the broader market has shrunk in three of the past four months. That bolsters critics, who worry that although the strategy seems appealing over the last tumultuous decade, the market winds may have shifted already.

Read more from the original source:
The Case for Stodgy Stocks

By Rick Aristotle Munarriz | More Articles May 21, 2012 |

Last week was a lousy one for tech investors, and things didn't get any prettier in China.

However, several of China's publicly traded Internet companies did come through with better-than-expected results.

Sure, a lot of them are still losing money. Investors are also naturally hesitant about buying into a country where the government has made it clear that it doesn't trust cyberspace. No one said that buying into new media in China was going to be a risk-free proposition. However, it's always encouraging to see a niche landing well ahead of the prognosticators.

Let's take a quick look at the five market thumpers.

Company

EPS (Estimated)

EPS (Actual)

My Watchlist

Source: Thomson Reuters.

Read more here:
5 Stocks Earning Their Keep in China

NEW YORK, NY--(Marketwire -05/21/12)- Facebook's IPO has brought a lot of attention to social media stocks in recent weeks. With Facebook's IPO being reported as oversubscribed some investors have been hoping to profit from other already-public social media stocks. "I do sense some 'temporary' momentum for these related social media stocks," stated Arvind Bhatia, financial analyst covering Facebook for Sterne Agee. Five Star Equities examines the outlook for companies in the Social Media Sector and provides equity research on Linkedin Corporation (LNKD) and Pandora Media Inc. (P). Access to the full company reports can be found at:

http://www.FiveStarEquities.com/LNKD

http://www.FiveStarEquities.com/P

Social media stocks, which had benefited recently from the interest in Facebook's IPO, suffered on Friday as the Facebook IPO had a rockier start than expected. Investors who are interested in a piece of Facebook may also take a hard look at companies who have the potential to be acquired by the social media giant. "LinkedIn, Zynga, Pandora, Yelp ... these are all potential acquisition bait for Facebook," Ironfire Capital founder Eric Jackson said. "If Facebook is going to trade at a premium -- like $150 billion to $200 billion, why not buy the fish and the bait, too?"

Five Star Equities releases regular market updates on Social Media Sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at http://www.FiveStarEquities.com and get exclusive access to our numerous stock reports and industry newsletters.

LinkedIn is a professional network on the Internet with more than 90 million members in over 200 countries and territories. The company reported revenue of $188.5 million for the first quarter ended March 31, 2012, an increase of 101% compared to the first quarter of 2011, and the 7th straight quarter of greater than 100% year-over-year growth.

Pandora Media is an Internet radio in the United States. As of January 31, 2012, it had over 125 million registered users. The Music Genome Project and its playlist generating algorithms predict listener music preferences, play music content suited to the tastes of each individual listener and introduce listeners to music they will love

Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: http://www.FiveStarEquities.com/disclaimer

Read more here:
Social Media Stocks Gaining Attention as a Result of Facebook's IPO