Hot Cheap Stocks To Watch For 2014

Americans are working more for less pay, according to a Q1 Productivity and Costs report (link opens in PDF) released today by the Labor Department.

Nonfarm business sector labor productivity bumped up an annualized 0.5% for Q1, driven primarily by a quarter-to-quarter 2.6% improvement in output and a 1.6% increase in hours worked. After improving 0.7% in Q4 2012, analysts had expected similar gains for Q1 2013.

But where productivity didn't quite pack the punch, cheaper labor surprised analyst estimates. Predictions called for a concurrent 0.5% increase in costs, but unit labor costs plummeted 4.3% after jumping 11.8% the previous quarter (a calculation error had previously pinned costs up 0.5% in the previous quarter). �

The combination of a 3.8% decrease in hourly wages, as well as the aforementioned 0.5% productivity boost were the main drivers behind May's cost cutting.

Source: bls.gov.�

Hot Cheap Stocks To Watch For 2014: Advance Auto Parts Inc(AAP)

Advance Auto Parts, Inc., through its subsidiaries, operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP) and Autopart International (AI). The AAP segment operates stores, which primarily offer auto parts, including alternators, batteries, chassis parts, clutches, engines and engine parts, radiators, starters, transmissions, and water pumps; accessories comprising floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers; chemicals consisting of antifreeze, freon, fuel additives, and car washes and waxes; and oil and other automotive petroleum products. This segment also provides battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics and project brochures, loaner tool programs, and oil and battery recycling services; and sells its products through online. The AI segm ent operates stores that offer replacement parts for domestic and imported cars, and light trucks to customers in northeast and mid-Atlantic regions, as well as to warehouse distributors and jobbers in North America. As of January 1, 2011, the company operated 3,369 AAP stores, including 3,343 stores located in the northeastern, southeastern, and Midwestern regions of the United States under the Advance Auto Parts and Advance Discount Auto Parts trade names; 26 stores situated in Puerto Rico and the Virgin Islands under the Advance Auto Parts and Western Auto trade names; and 194 stores under the Autopart International trade name in the United States. It serves do-it-yourself, do-it-for-me, or commercial customers. The company was founded in 1929 and is based in Roanoke, Virginia.

Advisors' Opinion:

• [By Dan Caplinger]

  What's interesting, though, is that historically, auto-parts makers are seen as relying on the lack of success among automakers. After all, new cars don't need parts nearly as often as older cars do, and when Ford and GM perform well, their customers don't have to rely as much on Genuine Parts or competitors AutoZone (NYSE: AZO  ) and Advance Auto Parts (NYSE: AAP  ) for replacements. Yet, even though Advance's 15% gain, and AutoZone's 20% rise year to date, aren't quite as substantial as Genuine Parts, they still signal a paradigm shift in the way investors look at the industry, perhaps recognizing that for every new car sold, there's usually a used car that gets traded in, and so good news for Ford and GM sales might actually translate into more business for the parts industry.

• [By CanadianValue]

  At the end of 2011, Advance Auto Parts (AAP) and O��eilly Automotive (ORLY) were the fifth- and tenth-largest positions in the Fund, respectively, and together constituted 6.2% of our assets. Auto parts retail is a difficult business for all but the most efficient players. An auto parts retailer must carry literally thousands of hard parts for hundreds of models of cars. Not many people walk in the door needing an alternator for a 1994 Ford, but the person who does is probably experiencing a crisis. The retailer who can manage a substantial investment in slow-turning parts inventory is able to earn a high margin on sales.

• [By Ben Levisohn]

  Autozone has dropped 0.3% to $413.22 �, while�Pep Boys (PBY) has gained 0.2% to $12.19 , Advanced Auto Parts�(AAP) has risen 0.3% to $80.35, and O’Reilly Automotive (ORLY) has advanced 0.3% to $124.42 .

Hot Cheap Stocks To Watch For 2014: TranSwitch Corporation(TXCC)

Transwitch Corporation designs, develops, and supplies semiconductor and intellectual property solutions for voice, data, and video communications equipment. The company provides integrated multi-core network processor system-on-a-chip (SoC) and software solutions for fixed, 3G and 4G mobile, VoIP, and multimedia infrastructures. It offers converged network infrastructure products, including infrastructure VoIP processors comprising Entropia series of processors for wire-line and wireless carrier equipment; EoS/EoPDH mappers and framers for formats and data speeds in the access portion of the network; tributary switches that enable traffic to be switched or re-arranged; and carrier Ethernet solutions consisting of Ethernet controllers and switches, as well as circuit emulation and clock recovery devices. The company also provides FTTx protocol processors, such as mustang, a system-on-chip solution for EPON optical network unit equipment; COLT processor, a system-on-chip so lution for the optical line terminator equipment; and Diplomat-ONT product, an integrated SoC solution for GPON ONU applications, as well as access VoIP processors and access controllers. In addition, it offers broadband customer premises equipment, including multi-service communications processors comprising Atlanta processor, a multi-service SoC for customer premises equipment that supports toll-quality telephone voice, fax, and routing functionality; and HDMI, displayport, HDP, and Ethernet IP cores for consumer electronics, home network equipment, and industrial and automotive applications. The company serves public network systems OEMs, WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs, as well as government, university, and private laboratories. It sells its products through direct sales force, independent distributors, and sales representatives. The company was founded in 1988 and is headquartered in Shelton, Connecticut.

Top 5 Safest Companies To Buy Right Now: CVS Corporation(CVS)

CVS Caremark Corporation operates as a pharmacy services company in the United States. The company?s Pharmacy Services segment provides a range of pharmacy benefit management services, including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and claims processing; and drug benefits to eligible beneficiaries under the Federal Government?s Medicare Part D program. This segment primarily serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals. As of December 31, 2010, it operated 44 retail specialty pharmacy stores, 18 specialty mail order pharmacies, and 4 mail service pharmacies located in 25 states, Puerto Rico, and the District of Columbia. This segment operates business under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, CarePlus, RxAmerica, Accordant, and TheraCom names. The company?s Retail Pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods through its pharmacy retail stores and online, as well as offers film and photo finishing, and health care services. This segment operated 7,182 retail drugstores located in 41 states, Puerto Rico, and the District of Columbia; and 560 retail health care clinics in 26 states and the District of Columbia under the MinuteClinic name. It has a strategic alliance with Alere, L.L.C. for the management of disease management program offerings that cover chronic diseases, such as asthma, diabetes, congestive heart failure, and coronary artery disease. CVS Caremark Corporation was founded in 1892 and is based in Woonsocket, Rhode Island.

Advisors' Opinion:

• [By WALLSTCHEATSHEET.COM]

  CVS Caremark provides valuable health care and pharmacy products and services to many consumers in the United States. The stock has been on a powerful move higher but is now digesting gains from a recent run. Over the last four quarters, earnings and revenue figures have increased for the company, but investors seem to have had mixed feelings about the reports. Relative to its peers and sector, CVS Caremark has been an average performer year-to-date. Look for CVS Caremark to OUTPERFORM.

• [By CRWE]

  CVS Caremark Corporation (NYSE:CVS) reported that Dave Denton, executive vice president and chief financial officer of CVS Caremark Corporation, will be speaking at William Blair & Company’s Growth Stock Conference on Tuesday, June 12, 2012, at approximately 8:50 a.m. CDT (9:50 a.m. EDT).

Hot Cheap Stocks To Watch For 2014: Lattice Semiconductor Corporation(LSCC)

Lattice Semiconductor Corporation designs, develops, manufactures, and markets programmable logic products and related software. The company offers field programmable gate array (FPGA) products, including LatticeECP family for deployment in wireless infrastructure and wireline access equipment, as well as in video and imaging applications; and LatticeXP for the security, surveillance, and display markets. It also provides programmable logic device (PLD) products comprising various versions of ispMACH4000 in-system programmable complex programmable logic device family; MachXO family that is designed for a range of low density applications; platform manager, power manager, and ispClock programmable mixed signal devices; and software development tools and intellectual property cores. The company sells its products directly to end customers through a network of independent manufacturers? representatives and indirectly through a network of independent sell-in and sell-through distributors. It primarily serves original equipment manufacturers in the communications, computing, consumer, industrial, military, automotive, and medical end markets. The company was founded in 1983 and is headquartered in Hillsboro, Oregon.

Advisors' Opinion:

• [By Lee Jackson]

  Lattice Semiconductor Corp. (NASDAQ: LSCC) is a top chip stock to buy at Jefferies. The company announced last month three new complete reference designs that will make it easier for electronic OEMs to deliver media-rich experiences to their end users by taking advantage of low-cost, industry-standard MIPI (Mobile Industry Processor Interface) camera, application processor and display technologies. The Jefferies price objective for the stock is $6.50, and the consensus is also at $6.50. Lattice closed yesterday at $4.63.

Hot Cheap Stocks To Watch For 2014: The Travelers Companies Inc.(TRV)

The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. The company operates in three segments: Business Insurance; Financial, Professional, and International Insurance; and Personal Insurance. The Business Insurance segment offers property and casualty products and services, such as commercial multi-peril, property, general liability, commercial auto, and workers? compensation insurance. It operates in six groups: Select Accounts, which serves small businesses; Commercial Accounts that serves mid-sized businesses; National Accounts, which serves large companies; Industry-Focused Underwriting that serves targeted industries; Target Risk Underwriting, which serves commercial businesses requiring specialized product underwriting, claims handling, and risk management services; and Special ized Distribution that offers products to customers through licensed wholesale, general, and program agents. The Financial, Professional, and International Insurance segment provides surety and financial liability coverage, which uses a credit-based underwriting process; and property and casualty products primarily in the United States., the United Kingdom, Ireland, and Canada. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. It distributes its products through independent agents, sponsoring organizations, joint marketing arrangements with other insurers, and direct marketing. The company was founded in 1853 and is based in New York, New York.

Advisors' Opinion:

• [By Jessica Alling]

  And of course, once you've bought a house you need insurance. Traveler's Companies (NYSE: TRV  ) is the No. 6 provider in home insurance, with a 4.3% market share. As the rate of new homeowners rises, a greater need for insurance will allow Traveler's and its competitors to fight for more market share.

• [By John Divine]

  Property and casualty insurance giant Travelers (NYSE: TRV  ) ended as the second-biggest Dow gainer, tacking on 1.5%. There wasn't any major catalyst behind today's gains, but shares sure don't look too bad at these levels. The stock seems cheap: It trades at just over 10 times forward earnings, and pays a 2.5% dividend -- the same yield as 10-year Treasury notes.

• [By WALLSTCHEATSHEET.COM]

  Travelers provides valuable insurance products and services to an increasing number of consumers and companies looking to mitigate risk. The stock has been on a significant run over the last several years and is now trading at all-time high prices. Earnings and revenue have been increasing over most of the last four quarters which has kept investors upbeat. Relative to its strong peers and sector, Travelers has been an average year-to-date performer. Look for Travelers stock to OUTPERFORM.

• [By Holly LaFon]

  Company Dell Inc. (DELL) Chesapeake Energy (CHK) DirecTV (DTV) Loews (L) Walt Disney (DIS) Aon Plc (AON) The Travelers Companies (TRV) Level 3 Communications (LVLT) FedEx (FDX) Bank of New York Mellon (BK)
  Learn more about Mason and his views on the present economy in his second-quarter letter here. See his portfolio here.

Hot Cheap Stocks To Watch For 2014: Horizon Lines Inc.(HRZ)

Horizon Lines, Inc., through its subsidiaries, provides container shipping and integrated logistics services. It ships a range of consumer and industrial items, such as refrigerated and non-refrigerated foodstuffs, household goods, auto parts, building materials, and other materials used in manufacturing. The company offers container shipping services to ports within the continental United States, Puerto Rico, Alaska, Hawaii, Guam, the U.S. Virgin Islands, and Micronesia. Its integrated logistics services comprise rail, truck brokerage, warehousing, distribution, expedited logistics, and non-vessel operating common carrier operations. Horizon Lines, Inc. also offers terminal services. The company operates terminals in Alaska, Hawaii, and Puerto Rico; contracts for terminal services in seven ports in the continental United States; and the ports in Guam, Yantian, and Xiamen, China, as well as Kaohsiung, Taiwan. In addition, it offers inland transportation services. As of Dec ember 20, 2009, the company owned or leased approximately 20 vessels and 18,500 cargo containers. Horizon Lines, Inc. serves consumer and industrial products companies, as well as various agencies of the U.S. government, including the Department of Defense and the U.S. Postal Service. The company was founded in 1956 and is based in Charlotte, North Carolina.