Here is the edited transcript of the interview on CNBC-TV18.
Q: How important is a contingency fund and is there any standard that pegs the ideal amount one should invest keeping in mind their salary?
A: It is important. In fact contingency fund should be the first step before you get into wealth creation. That is the liquid money which comes handy. Let me give you an example, during the July 26 downpour in Mumbai, a couple of years ago, phone lines were not functioning and ATMs were not working.
People could have had crores of rupees worth of assets, but no liquid money. That is where you are in trouble. You need to have contingency fund. In terms of what kind of reserve that you should have, it should ideally be equivalent to about three months of mandatory expenses.
Keep aside about three months of reserve. If you are retired, it maybe six months and if your income is volatile, it maybe for a little longer. But, usually for a standard middle class Indian family, about three months mandatory expenses should be kept for the contingency fund. Keep about 15-20 days of money in cash form at home and the rest could be in savings bank account linked to FD with an ATM facility.
Top 5 Dividend Stocks To Watch For 2015: DXP Enterprises Inc.(DXPE)
DXP Enterprises, Inc. engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services to industrial customers in the United States. Its Service Centers segment provides MRO products, equipment and services, including technical design expertise and logistics capabilities to industrial customers with the ability to provide same day delivery. This segment?s product categories comprise rotating equipment, bearing, power transmission, hose, fluid power, metal working, industrial supply, and safety products; and services consist of field safety supervision, in-house and field repair, and maintenance services. The company?s Supply Chain Services segment manages the supply-chain of its customers from various industries. This segment designs supply chain inventory management programs, including SmartAgreement, a procurement solution for MRO categories; SmartBuy, an on-site or centralized MRO procurement solution; SmartSource, an on-site procurem ent and storeroom management solutions; SmartStore, an e-catalog solution; SmartVend, an industrial dispensing solution; and SmartServ, an integrated service pump solution. Its Innovative Pumping Solutions segment fabricates and assembles custom-made engineered pump packages consisting of diesel and electric driven firewater, pipeline booster, potable water packages, pigging pump packages, LACT charge units, chemical injection pump packages wash down units, seawater lift pumps, jockey pumps, condensate pump packages, cooling water skids, and seawater/produced water injection packages. DXP Enterprises, Inc. distributes its products and services through service centers and distribution centers to customers in the oil and gas, food and beverage, petrochemical, transportation, mining, construction, chemical, municipal, agriculture, pulp and paper, and other general industrial industries. The company was founded in 1908 and is headquartered in Houston, Texas.
Advisors' Opinion:- [By Eric Volkman]
The position vacated by Salix in the S&P SmallCap 600 will be filled by Agree Realty (NYSE: ADC ) . Elsewhere on that index, DXP Enterprises (NASDAQ: DXPE ) �will replace True Religion Apparel (NASDAQ: TRLG ) . As with Gardner Denver in the S&P MidCap 400, True Religion Apparel is being acquired, in this case by private equity firm TowerBrook Capital Partners.
- [By Seth Jayson]
Margins matter. The more DXP Enterprises (Nasdaq: DXPE ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong DXP Enterprises's competitive position could be.
- [By Lisa Levin]
DXP Enterprises (NASDAQ: DXPE) shares climbed 3.46% to $68.42. The volume of DXP Enterprises shares traded was 771% higher than normal. DXP Enterprises' PEG ratio is 0.64.
10 Best Income Stocks To Invest In 2014: Silicon Graphics International Corp(SGI)
Silicon Graphics International Corp. provides computing and storage, and data center solutions, as well as related customer support and professional services. The company offers scale up servers; scale out servers; work group servers; data storage systems; and software products for technical computing, as well as data center infrastructure products, including ICE Cube Air, a modular data center that augments or replaces traditional brick-and-mortar data centers; and MobiRack, a line of mobile, all-in-one data center cabinets for field deployments. Its products and services are used by the scientific, technical, and business communities for solving challenging data-intensive computing, data storage, and management problems. The company also develops system applications, such as simulating global climate changes, accelerating engineering of new automotive designs, supporting homeland security initiatives, real-time fraud detection, streaming media from Internet-video to film , and gaining business intelligence through data-mining to defense and strategic systems, weather and climate, physical and life sciences, energy, aerospace and automotive, media and entertainment, semiconductor design and manufacturing, financial services, data centers, and business intelligence and data analytics markets; and enterprise class features for the Linux operating system that provide a standard Linux operating environment. Silicon Graphics International Corp. markets and sells its systems, technologies, software, and services to enterprises in approximately 25 countries through direct and indirect sales force, including distributors, original equipment manufacturers, system integrators, value added resellers, and channel partners. The company was formerly known as Rackable Systems, Inc. and changed its name to Silicon Graphics International Corp. in May 2009. Silicon Graphics International Corp. was incorporated in 2002 and is headquartered in Fremont, Californi a.
Advisors' Opinion:- [By John Udovich]
On Thursday, small cap supercomputer stock Cray Inc (NASDAQ: CRAY) announced that it had been rewarded with one of the largest contracts in its history for $174 million to provide the National Nuclear Security Administration (NNSA) with supercomputers - meaning its worth taking a closer look at the stock along with the performance of large caps�like International Business Machines Corp (NYSE: IBM) and�Hewlett-Packard Company (NYSE: HPQ) plus small cap Silicon Graphics International Corp (NASDAQ: SGI) who sort of compete with the company in the supercomputing space. I should�note that over a year ago, we had Cray Inc in�our SmallCap Network Elite Opportunity (SCN EO) trading portfolio�when we had suggested it was�potentially a good�low risk longer-term play.
- [By Seth Jayson]
Silicon Graphics International (Nasdaq: SGI ) is expected to report Q3 earnings on April 30. 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 Silicon Graphics International's revenues will grow 7.7% and EPS will expand 27.3%. - [By Alex Planes]
What: Shares of Silicon Graphics (NASDAQ: SGI ) are up by roughly 8% today after having risen as much as 15% by midday. The fluctuations of today's pop seem to be based on swings between a strong earnings report from the company and a bit of underwhelming forward guidance.
10 Best Income Stocks To Invest In 2014: 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.
10 Best Income Stocks To Invest In 2014: AEterna Zentaris Inc.(AEZS)
Aeterna Zentaris Inc. operates as a late-stage drug development company specialized in oncology and endocrine therapy. Its lead oncology compounds include perifosine, a PI3K/Akt pathway inhibitor that is in Phase 3 registration trial for refractory advanced colorectal cancer and multiple myeloma; and AEZS-108, a doxorubicin-targeted conjugate in Phase II for the treatment of ovarian, endometrial, castration refractory prostate, and refractory bladder cancer. The company?s lead endocrinology compound, AEZS-130, is an oral ghrelin antagonist in Phase III trial as a diagnostic test for adult growth hormone deficiency. Its pipeline also includes earlier-stage compounds, such as AEZS-112 that is in a Phase I trial in advanced solid tumors and lymphoma, as well as AEZS-120, an anti-cancer vaccine in pre-clinical development. The company was founded in 1991 and is headquartered in Quebec City, Canada.
Advisors' Opinion:- [By Sean Williams]
What's coming down the pipeline
Avastin: Surprise: It's Roche's (NASDAQOTH: RHHBY ) wonder drug yet again! Roche's Avastin is in the process of being tested as a treatment for recurrent endometrial cancer and demonstrated promising results in a mid-stage trial according to the Journal of Clinical Oncology. Avastin, which is an angiogenesis inhibitor (a fancy way of saying it inhibits blood vessel growth), was tested on 52 evaluable patients and delivered a progression-free survival of at least six months for 21 of them. Overall median PFS was 4.2 months, and median overall survival came in at 10.5 months. Don't be surprised if Roche decides to pursue further studies of Avastin in recurrent endometrial cancer with these results.� AEZS-108: Currently in late-stage development by Aeterna Zentaris (NASDAQ: AEZS ) , a holding in my own portfolio, AEZS-108 is an intravenous treatment composed of a synthetic peptide carrier and doxorubicin that targets Luteinizing Hormone Releasing Hormone-receptor expressing tumors. That series of scientific jargon simply means it targets cancer cells with minimal healthy cell death relative to the current standards of treatment. In mid-stage trials, AEZS-108 delivered an overall response rate of 30.8% and a clinical benefit rate of 74.4%. These figures were enough to get AEZS-108 a special protocol assessment (SPA), which should streamline its approval if these results stay consistent in late-stage studies.
As we saw with the current treatment options, the endometrial cancer pipeline isn't filled with a lot of choices, but they are at least more encouraging than the standard care treatments we've seen over the past three decades.Your best investment
With very few investable options to choose from, since many of these treatments are off patent as they're decades old, I'm going to split my decision this week between Roche and Aeterna Zentaris for obvious reasons. - [By Eric Volkman]
Aeterna Zentaris (NASDAQ: AEZS ) has made a significant change in its executive suite and boardroom. David Dodd is now the company's chief executive and a member of its board of directors. He succeeds Juergen Engel. The firm did not provide the reasons for the succession.
- [By Sean Williams]
High-risk, high-reward suggestions
Exelixis (NASDAQ: EXEL ) : In November Exelixis had its first drug, known as Cometriq, approved by the Food and Drug Administration to treat metastatic medullary thyroid cancer. Although the market for this disease is pretty small -- somewhere between 500 and 700 people in the U.S. -- the near-tripling in progression-free survival, or PFS, in trials would indicate to me a strong likelihood that it could translate to success in other cancer types. In mid-stage prostate cancer trials, for instance, Cometriq was found to be particularly effective in dealing with bone metastases as a second or third-line treatment. We won't get any additional data until next year on Cometriq, but positive data on the prostate cancer front could be enough to double its share price if the PFS, compared to the placebo, is notably strong. ImmunoGen (NASDAQ: IMGN ) : In February, Roche�and ImmunoGen received approval for Kadcyla as a secondary treatment for HER2-positive breast cancer. This is ImmunoGen's first drug approval, and it gives the company a chance to showcase what I feel is one of the future pathways of fighting cancer -- its targeted-antibody payload, or TAP, technology. ImmunoGen's TAP technology works by attaching a toxin -- in this case Roche's Herceptin -- to an antibody, and teaching that antibody to release the to
There's an undeniably large dollar amount being pledged to cancer research, but, even if a drug gains approval, that's no guarantee that the biotech or pharmaceutical company behind that drug will be a success. Some of the biggest gains (and losses) come from taking a leap of faith based on clinical data, or the approval of one or two drugs or devices within a pipeline. After that, it's all up to the drug or devices' effectiveness, its pricing, and the success of the marketing teams promoting the drug or device. Here are a few high-risk, high-reward names you should be keeping your eye on.
10 Best Income Stocks To Invest In 2014: Steel Dynamics Inc.(STLD)
Steel Dynamics, Inc., together with its subsidiaries, engages in the manufacture and sale of steel products in the United States and internationally. The company operates in three segments: Steel Operations, Metals Recycling and Ferrous Resources Operations, and Steel Fabrication Operations. The Steel Operations segment provides a range of sheet steel products, including hot rolled, cold rolled, and coated steel products; structural steel beams, pilings, and rails; special bar quality and merchant bar quality rounds and round-cornered squares; billets and merchant steel products comprising angles, plain rounds, flats, and channels; and merchant beams and specialty structural steel sections. This segment offers its products for automotive, agriculture, energy, construction, commercial, transportation, and industrial machinery markets. The Metals Recycling and Ferrous Resources Operations segment purchases, processes, and resells ferrous products, such as heavy melting steel , busheling, bundled scrap, shredded scrap, steel turnings, and cast iron products; and processes nonferrous products consisting of aluminum, brass, copper, stainless steel, and other nonferrous metals for use in foundry, mill refining, and smelting applications. It also provides liquid pig iron and hot briquetted iron; and iron nugget products. The Steel Fabrication Operations segment fabricates steel building components, which include steel joists, trusses, girders, and decking products for the non-residential construction industry. The company was founded in 1993 and is headquartered in Fort Wayne, Indiana.
Advisors' Opinion:- [By Ben Levisohn]
First, let Credit Suisse analyst�Nathan Littlewood and team explain why they not only downgraded US Steel and Nucor, but lowered their EBITDA forecasts for AK Steel (AKS), Commercial Metals (CMC) and Steel Dynamics (STLD), as well:
- [By Ben Levisohn]
Like the height of the Beatles/Rolling Stone rivalry, analysts are all but demanding you choose between US Steel (X) or Steel Dynamics (STLD).
ASSOCIATED PRESSKeyBanc’s Philip Gibbs and Tyler Kenyon are having none of it, or almost none of it. They explain:
- [By Damian Illia] ewcomer with more modern production techniques and high margins. For those investors like me who have their eyes set on longer-term investments, I would instead suggest Nucor Corp. (NUE). Let�� see why.
Modernizing Furnaces
Structural overcapacity in the steel world is largely changing the rules by which suppliers compete. New demand patterns ��like the replacement of steel parts in the automotive industry for aluminum parts or the unequal cycles that different economies are experiencing ��are also shaping supply into a more ��ust-in-time��one. Thus, the current global economic volatility, which translates into constantly changing steel prices, is forcing producers to be more flexible. Hence, it�� increasingly becoming more important to possess a low per-unit cost structure than to be able to generate large economies of scale by producing bulky quantities.
Here�� where I see that Nucor hold its competitive advantage: electric arc furnaces (EAF). These furnaces, in spite of being more electricity intensive, require a much lower per-unit investment and are significantly more efficient in terms of labor. Adding to this, the fact the Nucor has shifted its raw material usage from pig iron to direct-reduced iron (DRI) by building a new production capacity that utilizes cheap natural gas is also a way in which management is attaining a low-cost strategy to outperform its competitors. Moreover, Nucor�� acquisition of ferrous scrap metal broker David J. Joseph Company allows it to avoid price volatility.
Steel Dynamics is also pointing towards a higher operational flexibility by using EAFs, while it has secured raw material provision by having in-house scrap metal and pig iron, hedging the company from variations in the price of inputs. What I consider that makes Nucor a more attractive bet than Steel Dynamics is that the latter is more leveraged, and so its expansion perspectives are less interesting. Nucor�� debt-to-equ
- [By Dividends4Life]
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number
NUE is trading at a premium to all four valuations above. The stock is trading at a 85.8% premium to its calculated fair value of $28.51. NUE did not earn any Stars in this section.
Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:
1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%
NUE earned one Star in this section for 2.) above. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. The company has paid a cash dividend to shareholders every year since 1973 and has increased its dividend payments for 40 consecutive years.
Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description:
1. NPV MMA Diff.
2. Years to > MMA
The negative NPV MMA Diff. means that on a NPV basis the dividend earnings from an investment in NUE would be less than a similar amount invested in MMA earning a 20-year average rate of 3.68%. If NUE grows its dividend at 0.7% per year, it will never equal a MMA yielding an estimated 20-year average rate of 3.68%.
Memberships and Peers: NUE is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers
10 Best Income Stocks To Invest In 2014: SBM Offshore NV (SBMO)
SBM Offshore NV is the Netherlands-based company engaged in the offshore energy industry. It is a provider of floating production and mooring systems, in production operations and in terminals and services. The Company�� main activity is the design, supply, installation and operation of floating production, storage and offloading (FPSO) vessels. The Company�� business is divided into two segments: Lease and Operate, providing leasing and operation of oil and gas production facilities, and Turnkey, providing engineering, supply, overhaul and maintenance of Catenary Anchor Leg Mooring (CALM) buoys, swivels, mooring systems, fluid transfer systems and offloading systems. The Company has four main project execution centers located in the Netherlands, Monaco, the United States and Malaysia, and operates a number of subsidiaries. On September 4, 2013, the Company sold its cryogenic hose system technology to Trelleborg Industrial Solutions, the business area of Trelleborg AB. Advisors' Opinion:- [By Tom Stoukas]
PSA Peugeot Citroen and Anglo American Plc led carmakers and mining companies lower, respectively, on concern demand from China will weaken. St. James�� Place Plc tumbled the most in 4 1/2 years after Lloyds Banking Group Plc sold 77 million shares in the British wealth manager. SBM Offshore NV (SBMO) jumped to the highest price in 13 months after saying its first-quarter revenue increased 35 percent.
10 Best Income Stocks To Invest In 2014: Clearwire Corporation(CLWR)
Clearwire Corporation, through its subsidiaries, provides fourth generation wireless broadband services in the United States. The company builds and operates mobile broadband networks that offer high-speed mobile Internet and residential Internet access services. It serves retail customers through its CLEAR brand. The company markets its products and services directly to consumers, as well as through cellular retailers, consumer electronics stores, satellite television dealers, and computer sales and repair stores; and through company-operated retail outlets. As of December 31, 2011, it had approximately 1.3 million retail and 9.1 million wholesale subscribers. The company is headquartered in Bellevue, Washington. Clearwire Corporation is a subsidiary of Sprint HoldCo LLC.
Advisors' Opinion:- [By Anders Bylund]
Sprint Nextel (NYSE: S ) and Clearwire (NASDAQ: CLWR ) are nearing the end of their multiple bidding wars. Figuring out what Japanese wireless vendor Softbank and all-American broadcaster DISH Network (NASDAQ: DISH ) might get is tough enough, but hardly the whole story. This drama is so complicated, one of the targets (Sprint) is even bidding on the other one (Clearwire).
- [By Dan Radovsky]
SoftBank and DISH have been fighting over acquiring Sprint in a battle that has gone back and forth since the middle of April, but DISH threw in the towel after SoftBank raised its offer. In addition, Sprint then seemingly blew DISH's $4.40 a share bid for Clearwire (NASDAQ: CLWR ) out of contention with a SoftBank-supported $5.00 a share offer.
