Top 5 Japanese Stocks To Watch For 2014

As concerns over China's growth spook the global markets, MoneyShow's Jim Jubak looks at one of the key concerns and questions how long before they turn things around.

The worry about China goes on, and basically, right now, that worry is a big enough deal so that it is driving emerging market stock prices and driving them down. It is driving the Japanese market and driving that down, that then is slopping over, and on most days, it is also driving down Europe and the United States. Here is the representative story for this kind of stream of worry. This is from January 23.

We had a report from China of what is called the flash reading on the PMI, that is the Purchasing Managers Index from HSBC and Market Economics. These are two private companies that do their own and look at what purchasing managers are thinking. It is equivalent to the US Index. We get the official read a couple of weeks after that, usually. What they reported was that, for January, they were seeing a drop down to 49.6 from 50.5 in December. It does not seem like a big drop, nine-tenths of a percentage point, but on this index, anything below 50 indicates that a sector, or the economy as a whole, is contracting, so the drop from a little over 50 to a little under 50 just fed right into worries that the Chinese economy is indeed going to contract in 2014. It is not going to make the official growth rate, which, in 2013, was 7.5%. We do not yet have the official target for 2014, but you are getting a lot of evidence that the Chinese economy is slowing. You have had big scares about liquidity and all this is leading into a story that basically says, ��ey, there are real worries.��

Top 10 Cheapest Stocks To Watch Right Now: Perrigo Company PLC (PRGO)

Perrigo Company plc, incorporated on March 23, 1988, is a global healthcare supplier that develops, manufactures and distributes over-the-counter (OTC) and generic prescription (Rx) pharmaceuticals, infant formulas, nutritional products, animal health, dietary supplements, active pharmaceutical ingredients (API), and medical diagnostic products, and Multiple Sclerosis drug Tysabri. The Company�� businesses include Consumer Healthcare, Nutritionals, Rx Pharmaceuticals, API, Life Sciences and Other Businesses. The Company offers Healthcare Products across a range of product categories primarily in the United States, the United Kingdom, Mexico, Israel and Australia, and distributes into dozens of other markets worldwide, including Canada, China and Latin America. In February 2014, the Company announced that it has acquired a basket of value-brand OTC products sold in Australia and New Zealand from Aspen Global Inc.

The Company operates through several wholly owned subsidiaries. In the United States, its operations are conducted primarily through L. Perrigo Company, Perrigo Company of South Carolina, Inc., Perrigo New York, Inc., PBM Products, LLC, PBM Nutritionals, LLC, Paddock Laboratories, LLC, Perrigo Diabetes Care, LLC (formerly CanAm Care, LLC), Sergeant's Pet Care Products, Inc. and Fidopharm, Inc. Outside the United States, its operations are conducted primarily through Perrigo Israel Pharmaceuticals Ltd., Chemagis Ltd., Quimica y Farmacia S.A. de C.V., Laboratorios Diba, S.A., Wrafton Laboratories Limited, Galpharm Healthcare Ltd., Orion Laboratories Pty Ltd and Rosemont Pharmaceuticals Ltd.

Consumer Healthcare

Perrigo Consumer Healthcare (CHC) operation includes the Company's United States, United Kingdom and Mexico manufacturing operations supporting the sale of OTC pharmaceutical products. Perrigo CHC supplies more than 15 categories and 500 formulas and offers analgesics, cough and cold remedies, and gastrointestinal and feminine hygiene products, as w! ell as vitamins, dietary supplements and nutritional drinks. Perrigo offers a range of products, such advertised brand products as Tylenol, Advil or One-A-Day. Tylenol has acetaminophen as an active ingredient and is available in stores' analgesic (pain reliever) aisle. Store-brand acetaminophen is located next to the national brand, offering the same active ingredient (acetaminophen) and the same pain relief.

Perrigo Nutritionals

Perrigo is a manufacturer of nutrition products for the store brand market. Nutrition products include infant formula, pediatric nutritionals and vitamins, minerals, and supplements. Acquired by Perrigo, Perrigo Nutritionals, formerly PBM Products, LLC, had introduced private-label, or store-brand infant formulas to the United States. Perrigo Nutritionals is the supplier of store-brand infant formulas and nutrition products. With distribution to major retailers, Perrigo Nutritional products can be found in more than 40,000 retail locations around the world. Its pediatric nutritionals business extends its offerings to children well beyond infancy. Its baby cereals, toddler foods, and pediatric nutritional drinks are available as store brands at various retail locations throughout the United States and the international community. Perrigo manufactures a range of vitamins, minerals, and supplements, in every major segment of the business. Marketed under the store brand labels of the retailers in the food, drug, mass-merchandise and wholesale club channels, it manufactures over 395 formulas of dietary supplements. Its brands include Centrum, One-A-Day, Flintstones, and Osteo-Bi-Flex.

Rx Pharmaceuticals

The Company�� Rx Pharmaceuticals business is focused on the development, manufacture and sale of generic prescription drug products, primarily for the United States market. Manufacturing operations are based in the United States and Israel. Perrigo's portfolio focuses on complex, high-barrier ophthalmological, topical foam and or! al liquid! formulations. Its products include Acetylcysteine Injection 200 mg/mL (6g/30mL), Acetylcysteine Injection 6 g/30 mL (200 mg/1 mL), NOVAPLUS, ACTIDOSE with SORBITOL, ACTIDOSE-AQUA, ASPIRIN SUPPOSITORIES USP, Bacitracin Ophthalmic Ointment USP, Belladonna and Opium Suppositories C-II, BENZOIN COMPOUND TINCTURE USP, Benzoyl Peroxide 10% Acne Medication Wash, CLOBETASOL PROPIONATE LOTION 0.05% and Docusate Sodium.

Active Pharmaceutical Ingredients

Primarily through the Company�� Israel-based business, Perrigo develops, manufactures and markets the complex chemicals and active pharmaceutical ingredients used worldwide by the generic drug industry. Certain of these ingredients are also used in Perrigo's own pharmaceutical products. It manufactures API at facilities in Israel, India and China. Perrigo API specializes in tailor-made research and process development of APIs and Finished Dosage Forms (FDFs).

Life Sciences

Through the Company�� Israel-based business, Perrigo markets and manufactures branded prescription drugs and medical diagnostic products through exclusive agreements with pharmaceutical companies. Its Pharmaceutical and Medical Diagnostic Products businesses also market and manufacture branded prescription drugs under licenses. Other pharmaceutical and medical diagnostics products are imported to Israel through exclusive agreements. Products in life sciences segment include TYSABRI and ELND005. TYSABRI (natalizumab) is indicated for treatment of: Multiple Sclerosis: as monotherapy for the treatment of patients with relapsing forms of multiple sclerosis to delay the accumulation of physical disability and reduce the frequency of clinical exacerbations. TYSABRI is recommended for patients who have had an inadequate response to, or are unable to tolerate, an alternate MS therapy; Crohn�� Disease (CD): Inducing and maintaining clinical response and remission in adult patients with moderately to severely active Crohn�� disease with e! vidence o! f inflammation who have had an inadequate response to, or are unable to tolerate, conventional CD therapies and inhibitors of tumor necrosis factor-伪.

Other

Perrigo's Pharmaceutical and Medical Diagnostic Products business markets and manufactures branded prescription drugs under licenses. Other pharmaceutical and medical diagnostic products are imported to Israel through exclusive agreements with pharmaceutical and diagnostics companies. This business is divided into two departments: Pharma-Israel and Tayco Diagnostics. Pharma-Israel operates in the Israeli market as a partner in the marketing, sales and distribution of Rx (dermatology, gastroenterology, blood products, CNS, urology and other fields), OTC, generics, branded generics, dermo-cosmetics and dietary supplements. Tayco, the diagnostics division of Perrigo-Israel Pharmaceuticals Ltd., specializes in marketing and sales of medical laboratory systems, reagents, accessories and consumables. It also markets self-monitoring medical devices for diagnosis and treatment of diabetes. The division operates throughout Israel to service the central laboratory, hospital, clinic, point of care and self-testing markets. Its activities in the medical and research fields in Israel cover all market segments: medical (private and public health services), research institutions and the biotech industry.

The Company competes with Dr. Reddy�� Laboratories, Ltd., Actavis Inc., Aaron Industries, Inc., Ohm Laboratories, Inc., PL Developments, LNK International, Inc., Abbott Laboratories, Mead Johnson Nutrition Co., Nestle S.A. (Gerber), Danone Baby Nutrition, Bayer AG, Pfizer, Inc., Rexall Sundown, Inc., Apotex, Glenmark Generics Inc., Impax, Prasco, Sandoz, Taro Pharmaceuticals, Teva Pharmaceutical Industries Ltd., Triax Pharmaceuticals, and Zydus Pharmaceuticals.

Advisors' Opinion:

• [By Laura Brodbeck]

  Stocks moving in the Premarket included:

  Boeing(NYSE: BA) lost 1.98 percent in premarket trade after falling 0.25 percent on Friday. Alcoa(NYSE: AA) fell 1.32 percent in premarket trade after gaining 3.58 percent last week. Perrigo Company PLC (NYSE: PRGO) gained 0.36 percent in premarket trade after rising 0.36 percent on Friday. Berkshire HathawayInc (NASDAQ: BRKB) gained 0.27 percent in premarket trade after increasing 5.95 percent last week.

  Earnings

• [By Johnson Research Group]

  Expect to see the shorts��resolve start to break as CERN stock cracks the $60 level, sparking a short squeeze.

  Short Squeeze Candidate #2: Perrigo (PRGO)

  
  Click to Enlarge Another classic setup for a short squeeze is the activity that we��e seeing in Perrigo (PRGO).

• [By Laura Brodbeck]

  Stocks moving in the pre-market included:

  Wyndham Worldwide Corp (NYSE: WYN) gained 2.65 percent in pre-market trade, adding to its 4.02 percent rise over the past five days. Goldman Sachs Group Inc (NYSE: GS) gained 1.42 percent in pre-market trade after falling 0.95 percent on Wednesday. Perrigo Co (NYSE: PRGO) gained 0.66 percent in pre-market trade after losing 1.96 percent in the past week. U.S. Bancorp (NYSE: USB) lost 0.61 percent in pre-market trade after gaining 0.80 percent over the past five days.

  Earnings

• [By Rich Duprey]

  Investors going with health-care products maker Perrigo� (NYSE: PRGO  ) �will receive a�quarterly cash dividend�of�$0.09 per share on June 18 to shareholders of record at the close of business on May 31 for the fiscal third quarter of 2013.

Top 5 Japanese Stocks To Watch For 2014: U.S. Global Investors Inc.(GROW)

U.S. Global Investors, Inc. is a publicly owned investment manager. The firm primarily provides its services to investment companies. It also provides its services to pooled investment vehicles. The firm manages mutual funds for its clients. It invests in the public equity and fixed income markets across the globe. The firm invests in value stocks to make its equity investments. It employs a fundamental and technical analysis with bottom-up and top-down analysis to make its investments. The firm typically invests in companies specializing in gold and natural resources. U.S. Global Investors, Inc. was founded in 1968 and is based in San Antonio, Texas.

Advisors' Opinion:

• [By Morgan Myrmo]

  One business that is ripe for takeover is U.S. Global Investors (GROW), a micro-cap asset manager based in San Antonio, Texas. The company specializes in the management of gold, mineral, resource and high-growth emerging market mutual funds. U.S. Global fund values have been hammered over the last five years as the current economic recovery has yet to reach commodities and emerging markets.

Top 5 Japanese Stocks To Watch For 2014: Knight Transportation Inc (KNX)

Knight Transportation, Inc. (Knight), incorporated on August 31, 1989, is a provider of multiple truckload transportation services, which generally involve the movement of full trailer or container loads of freight from origin to destination for a single customer. The Company is a provider of multiple truckload transportation services with a nationwide network of service centers through which it operates one of the tractor fleets. In addition to its own fleet, the Company also partners with third-party equipment providers to provide truckload capacity and a broad range of solutions to truckload shippers. The Company has five operating segments comprised of three asset-based operating segments: dry van truckload, temperature-controlled truckload and port services and two non-asset-based operating segments brokerage and intermodal services. Through its asset-based and non-asset-based capabilities the Company is able to transport, or can arrange for the transportation of, general commodities for customers throughout the United States and parts of Canada and Mexico.

The Company's asset-based businesses generally include dry van truckload, refrigerated truckload, dedicated truckload, and drayage services. Its non-asset-based services generally include rail intermodal and truckload brokerage services. However, within its asset-based services, the use of independent contractors to provide tractors lowers the capital investment in its dry van and refrigerated operations. In addition, drayage operations generally involve less expensive tractors with longer lives and do not require a investment in trailering equipment. As of December 31, 2012, it operated 3,627 company-owned tractors with an average age of 1.9 years. It also had under contract 507 tractors owned and operated by independent contractors. Its trailer fleet consisted of 9,564 53-foot long trailers with an average age of 5.5 years and includes 1,092 temperature-controlled trailers.

Advisors' Opinion:

• [By Sean Williams]

  Swift Transportation (NYSE: SWFT  ) , for example, delivered a 4% increase in revenue this past quarter in spite of having fewer trucks in service. The company was able to realize better utilization of its existing fleet and actually saw fuel prices fall from the previous year. The results were even more robust for Knight Transportation (NYSE: KNX  ) , whose shareholders saw revenue rise by 7% as the company grew from the year-ago quarter for the 14th straight time and delivered growth from each of its business segments.

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Knight Transportation (NYSE: KNX  ) , whose recent revenue and earnings are plotted below.

Top 5 Japanese Stocks To Watch For 2014: Passport Potash Inc (PPI)

Passport Potash Inc. is a Canada-based exploration-stage company engaged in the acquisition, exploration and development of mineral resource properties. The Company is engaged in the exploration and development of potash properties. The Company has an interest in or has the right to earn an interest in six properties, Southwest Exploration Property, Twin Buttes Ranch, Sweetwater/American Potash, Mesa Uranium, Ringbolt Property and Fitzgerald Ranch (the Holbrook Basin properties), which are all located in Arizona. The Company has not established any proven or probable reserves on its mineral property interests. The Company's Holbrook Basin project is located seven miles east of Holbrook, Arizona. Advisors' Opinion:

• [By Arrow Analysis]

  The merger between the two companies had been in the works since September, but hit many a bump on the road. The two major obstacles in the path were the Chinese regulations and the ongoing tax investigation regarding Nokia�� Indian plant, operating in Chennai. While China green-lighted the deal easily, the Indian authorities were less obliging. The end result is that the Indian facility was not a part of the acquisitions and will be retained by Nokia. Although Nokia has not announced any conclusive plans, the fact that it offered its 7500+ Indian workers early retirement scheme suggests that the plant may soon be shut down. Also, noticeably absent from the terms of the merger was the ��tate of the art��South Korean plant in Masan. The deal closed for $7.5 billion. As previously decided, Nokia�� former CEO Stephen Elop will be reporting to Microsoft CEO, Satya Nadella and will be appointed executive vice president of Microsoft Devices Group. He will be overseeing the division that, from hence on, will be in charge of expanding the business of Lumia smartphones and tablets, Xbox hardware, Perceptive Pixel (PPI) products and accessories. Microsoft also plans to export more than 25,000 of Nokia�� former 90,000 employees.What does it mean for Microsoft�� future?

• [By JulieYoung789]

  On Friday, June 13 the Commerce Department released its monthly report on producer prices which is one measure used to gauge the direction of price inflation in the U.S. The May Producer Price Index (PPI) reading showed a decrease of 0.2% seasonally adjusted. The Producer Price Index is a significant market moving news release and the worse than expected results likely had an effect on the market�� downward turn for the week.