Jim Cramer's 'Mad Money' Recap: A Winning Quarter

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- The last day of the second quarter gave investors lots of ways to win, Jim Cramer told his Mad Money viewers Monday, and the third quarter might not be all that different. While the bears may point to June being the slowest month of the year, in 2014 all the major averages managed to eek out gains, and there were many ways to profit. Over on the Nasdaq, Cramer noted that many of the high-value stocks including Tesla Motors , FireEye and Workday all showed strong results. Meanwhile, Monday morning merger news made stocks like PPG pop a quick Cramer said many of the major investing themes of 2014 remain intact, things like the natural and organic food movement continue to power Hain Celestial and its peers higher. Activist investors are also still all the rage, with Nelson Peltz' interest in Bank of New York Mellon sending those shares up 3.4%. Cramer said it's not too late to get in on that deal. Analysts upgrades have also been working, Cramer noted, with Micron Technology and Norfolk Southern among the winners there. Finally, there's the red-hot initial public offering market, with stocks like GoPro raging higher on its debut last week. Add to this a red-hot biotech group with stocks such as Mannkind powering higher and it's easy to see why Cramer can't wait to see what the second half of the year brings. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

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The Income Buyers' Guide to Real Estate Investment Trust ETFs

NEW YORK (Fabian Capital Management) -- Real estate investment trusts, or REITs, have come a long way from the drubbing they experienced this time last year. The Federal Reserve-induced taper tantrum led to a significant selloff in these income-generating vehicles that was primarily driven by rising interest rates and the fear of a slowing real estate market. The majority of REIT ETFs fell between 15%-20% in a two-month time frame that culminated in an excellent opportunity for value-seeking investors to purchase these funds at attractive price points and much higher yields. Since that selloff we have seen a complete price retracement back to the prior highs as yield-hungry buyers have stepped back into the real estate game. One of the attractive attributes of REITs is they are considered an alternative asset class with different risks and growth drivers than traditional stocks and bonds. This makes them an excellent opportunity to diversify your portfolio in an unconventional asset class, in addition to adding a much higher yield than the average dividend-paying stock. >>7 ETFs That Aren't Supposed to Be Beating the S&P 500 In fact, REITs are generally required to pay out the majority of their taxable income as dividends to shareholders. In terms of size, the largest and most heavily traded ETF in this space is the Vanguard REIT ETF . This fund is comprised of 137 publicly traded REITs with a total portfolio size of $23.1 billion. The top two holdings in the market-cap weighted VNQ include Simon Property Group and Public Storage . However, the fund is widely diversified in a number of hotel, healthcare, office, retail, and residential REITs. Probably the most attractive quality of VNQ over similar broad-based real estate competitors such as the iShares Real Estate ETF is its miniscule expense ratio. VNQ currently charges a tiny 0.10% management fee compared to 0.46% for IYR. The only lower-cost vehicle in its class is the Schwab U.S. REIT ETF , which touts an expense ratio of just 0.07% annually. VNQ has an effective yield of 3.70% based on the most recent distribution and income is paid quarterly to shareholders. So far this year, VNQ has gained 17.01% as the combination of favorable real estate data and falling interest rates have been a tail wind for higher prices. REITs are often very sensitive to changes in interest rates because their financing and acquisition costs are heavily reliant on a favorable yield environment. Investors typically shun REITs in a rising rate environment because the additional risks you assume to own these companies versus other income opportunities become less attractive as bond yields rise. While the majority of ETF assets in this space are focused on domestic REITs, there are also numerous international and sector-specific offerings that are intriguing as well. The SPDR Dow Jones International Real Estate ETF is the largest fund by assets focused on overseas REIT holdings. RWX has over $4.7 billion allocated to 136 foreign REITs with the largest country allocations being Japan, United Kingdom, and Australia. The dividend yield on RWX is listed at 4.43% as of the most recent distribution. Another top international competitor is the Vanguard Global Ex-U.S. Real Estate ETF . This ETF represents REITs in over 30 countries which include both developed and emerging market names. The VNQI portfolio is also much broader, with 551 holdings representing $1.4 billion in total assets. International REITs can be an excellent way to diversify your exposure outside of the U.S. dollar and into burgeoning real estate opportunities abroad. However, both RWX and VNQI have lagged their domestic counterparts this year in total return. RWX has gained 8.98% and VNQI has increased 6.91% half way through 2014. Blackrock also offers targeted regional international REIT exposure via the iShares Asia Developed Real Estate and iShares Europe Developed Real Estate . Because real estate trends can develop in independent geographical areas, these funds allow you to hone in on more specific foreign countries according to your investment thesis. If you want more targeted domestic REITs, the answer might lie in sector-specific offerings. There are several ETFs that are focused on industrial, residential, and retail companies that allow you to access opportunities in these niche areas. Each particular sector may perform better or worse than an aggregate index such as VNQ depending on the fundamental drivers for each theme. For example, the iShares Residential Real Estate Capped ETF is an ETF that invests in only residential, health care, and public storage companies. It is currently sitting on a 2014 unrealized gain of 19.84%, which bests nearly every fund in its class. The Bottom Line The ETF universe has never been so inviting to income investors that are looking for diversified ways to enhance their portfolio yield. The plethora of options available allows you to hone in on the type and style of REIT ETF that meets your unique needs. In addition, many brokerage companies have several of these ETFs listed on their transaction-free schedules, which may help you decide which fund is most appropriate. No matter how you slice it, REIT ETFs can offer uncorrelated returns with excellent yields during a surging real estate or falling interest rate environment. At the time of publication the author had a position in VNQ. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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Learning Curve in China Benefits Kids and Investors

BEIJING (TheStreet) -- Instead of driving to soccer practice, the Chinese version of a "soccer mom" shuttles her only son or daughter to a math tutor on Saturday mornings, an English training center Saturday afternoons, and Sunday morning piano lessons. The kid might relax a little before starting Sunday night homework. This sort of running around for weekend schooling -- aimed at helping a child get ahead even in kindergarten, get into college and get a good job -- is a big reason why companies offering educational services are now stock investor favorites in China. Parents across eastern Asia push extra education for pre-high schoolers. But in terms of customer volume no country comes close to beating the business potential in China, home to about 235 million children aged 14 and under. Moreover, Chinese parents are motivated by the one-child policy, which only recently was relaxed by the central government, to spare no expense that might help a son or daughter succeed. >>What Experts Expect from a Fed Rate Hike in Early '15 Some companies such as Pearson's Wall Street Institute English schools operate computer-outfitted learning centers in urban shopping districts, while others provide in-home tutoring or online instruction. A French company called Pop Languages, whose language curriculum revolves around pop music songs, is one of many chain operations with franchisees. Singapore-based Wee Care runs franchised learn-play centers for the under-age-6 crowd. Many American investors are familiar with New Oriental Education , perhaps the country's biggest learning center operator, which has been listed on the New York Stock Exchange since 2006. It focuses on English, core subjects and college entrance exam training. Increasingly popular are Internet-related services including so-called online-to-offline, or O2O, businesses that attract customers through the Internet and steer them into storefront learning centers. One example is Shenzhen-listed Qtone Education, whose stock value rose about 20% in June. Qtone's core business model involves online systems to help parents find and directly interact with teachers or learning centers in some 29 cities nationwide. A recent Founders Securities report recommending Qzone stock said the company encourages "stable, cooperative relations" between parents and teachers. Core-subject tutoring is the focus of a private company backed by Bain Capital called 1Smart Education. The company operates a franchise system and attracts customers to its more than 100 learning centers nationwide by promoting its teachers, where they attended university and their academic awards. Analysts are also recommending companies in the online education sector, which a recent Qilu Securities report said is already a "200 billion yuan business" in China and still has "enormous room for development." Not only are more families than ever wired to the Internet at home and through smartphones, but Qilu said the central government is "gradually liberalizing education policy" in ways that encourage learning through the Internet. Qilu's recent recommendations include Talkweb, which provides teaching tools for primary school children through mobile Internet connections and claims 6 million customers, and a software maker called Lanxum whose products are used for educational videoconferencing and related services. Both companies are listed in Shenzhen. Another recommendation is Shanghai-listed Xin Nan Yang, a technical and manufacturing-related education services provider closely affiliated with Shanghai Jiatong University and institutions in Southeast Asia. Its stock price has climbed 25% over the past month. At the time of publication, the author held no positions in any of the stocks mentioned. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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For American Apparel, There's No Turning Back

NEW YORK (TheStreet) -- As the boardroom drama continues unfolding at troubled retailer American Apparel , corporate governance experts are saying that there is no way the company can reinstate fired CEO Dov Charney. The New York Post is reporting that American Apparel may have to reinstate Charney in his position in order to avoid defaulting on its $10 million loan with Lion Capital. Media reports including the New York Post and Bloomberg have said that Lion Capital will not grant the waiver to keep its $10 million loan to American Apparel from defaulting. But at least one expert says that is not an option. "The decision to terminate has been made," says Charles Elson, a professor at the University of Delaware and a corporate governance expert. "I believe it took a lot of courage to make this decision and you have to just stick with it in my opinion unless events prove otherwise. The question is how much is this going to cost the company?" American Apparel, Is It Fit for a Buyer? American Apparel In Talks With Lion Capital over $10 Million Loan 3 Lessons Lululemon and American Apparel Need to Learn A spokeswoman for American Apparel declined to comment to TheStreet on Monday.The Los Angeles-based manufacturer and retailer, known for its "Made in USA" mission, surprised Wall Street earlier this month when its board of directors put out a press release saying they had voted to replace Charney, 45, and notified him of their intent to terminate his employment with co-chairman Allan Mayer citing "an ongoing investigation into alleged misconduct" as the reason. Charney's termination is expected to be effective following a 30-day "cure period" as part of his employment agreement. But the saga is far from over. Charney, who started the company in 1997 and owns roughly 27% of its shares, is not going down without a fight and has indicated that he intends to "contest it vigorously," he said as part of a Securities and Exchange Commission filing last week. According to a June 27 SEC filing Charney indicated "an intent to acquire control or influence over the company." The filing detailed an agreement between Charney and Standard General that would have allowed him to increase his stake in American Apparel. Yet American Apparel retaliated on Saturday by adopting a one-year shareholder rights plan, or so-called poison pill, that is triggered if any one shareholder attempts to purchase more than 15% of the company's shares. The shareholder rights plan is "designed to strengthen the ability of the board of directors to protect the company's stockholders," American Apparel said in a press release. American Apparel adopted the poison pill in response to "reports of rapid accumulations" of the Los Angeles-based retailer's outstanding common stock, the release said. "The rights plan is designed to limit the ability of any person or group, including Dov Charney, to seize control of the Company without appropriately compensating all American Apparel stockholders," American Apparel said in the release. The company, as of May 31, had approximately 10,000 employees and 249 retail stores. "They don't appear to have a lot of time," says Gary Hewitt, head of research at GMI Ratings, a leading corporate governance ratings and data provider, referring to the July 4 deadline reported by the New York Post as the time in which American Apparel needs to repay the $10 million loan to Lion Capital. "They have to resolve the financing issue to give them room to act. They do not want the financial squeeze to put them in a position to act in a way they don't want to have to act." "The painful piece of that is either it's going to be a debt financing which I can't imagine will have very attractive terms or equity financing, which would be severely dilutive to shareholders," Hewitt says. "The difficulty is that the board felt compelled to act given the information they had, so they're clearly in a tight spot." Last week American Apparel hired Peter J. Solomon Company as its strategic and financial adviser. The company's chairman Allan Mayer has told The Deal, TheStreet's sister site, that it does not plan to sell. Mayer also said that the company has sufficient capital to pay off the Lion loan if it is called. "The big thing for this company right now is regaining the confidence of its lenders, regaining the confidence of its [vendors] and increasing its profitability," says Jerry Reisman an expert in business and corporate law and a partner at Reisman Peirez, Reisman and Capobianco in Garden City, N.Y. Given that however, "no one cares if a company goes under. The only ones who care are the shareholders or the employees, but in terms of consumers, they don't care. Apparel companies come and go. And nobody misses them." --Written by Laurie Kulikowski in New York. Follow @LKulikowski // 0;if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); // ]]>

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Roth or Traditional IRA? A Roth is Almost Always the Right Answer

NEW YORK (MainStreet) Some investors agonize over every decision, even to the point of gridlock. One of the most often asked questions in matters of personal finance is, "Should I have a Roth or Traditional IRA?" Most advisors will say the choice boils down to predicting your future income tax rate. Think it will be higher? Get a Roth. Expect to be in a lower tax bracket in retirement? Contribute to a Traditional IRA. And while that binary test still prevails, for most investors the answer may be even simpler. "While the benefits of Roth IRAs are more pronounced for Millennials, our research shows the majority of investors would still be better off using a Roth IRA than a Traditional IRA," says T. Rowe Price senior financial planner Stuart Ritter. Ritter conducted a study to determine how investors in different age groups benefit from the tax advantages of Roth IRAs. The research compared retirement income generated by Roth IRA compared to that of an investor who used a Traditional IRA. The study assumes an investor retires at age 65 and contributes $1,000 into a Roth IRA or a Traditional IRA at various ages. Being in a 25% tax bracket at the time of their contribution, the $250 tax deduction from the Traditional IRA would be invested in a separate taxable account. An annualized 7% return is assumed for all investment accounts during the accumulation phase, but drops to 6% for all three accounts during a 30-year retirement. The results revealed that a 25-year-old who used a Roth IRA and remains in the same tax bracket in retirement would have nearly 20% more spendable income in retirement than an investor who selected a Traditional IRA instead. But Ritter says the Roth tax advantage goes beyond benefiting only young adults. "Since most investors remain in the same tax bracket in retirement, the Roth IRA can generate more spendable income even for an investor who made their contribution at age 65," he says. In fact, the Roth IRA produced more spendable retirement income in most of the scenarios analyzed -- except for investors nearing retirement who see their income tax rate fall. "A significant drop in tax rates between when the investor made her IRA contribution and began retirement withdrawals can often be offset by the power of tax-free compounding," Ritter says. "But for investors nearing retirement, there isn't enough time for the money to compound at a rate to counter the significant reduction in their tax bracket during retirement." If an investor is over 50 years old and his taxable income falls by at least 9%, the Traditional IRA becomes more valuable, according to Ritter's study. A 65-year old would need only a 6% drop in his tax bracket for a Traditional IRA contribution to be more advantageous than the Roth IRA in retirement. --Written by Hal M. Bundrick for MainStreet

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Intel Wins the Chip Battle vs. AMD Based on Technology Trends

NEW YORK (TheStreet) -- In my last technology dividend piece I focused on AT&T and Intel . Each Intel article elicits my Advanced Micro Devices opinion from readers. Repeatedly I have stated investors with long-term holdings want a portion of their portfolio in Intel. It's a general purpose stock; it pays a dividend for yield seekers, it's high-tech for gadget lovers, and it faithfully executes quarter after quarter. In other words, Intel is the Yellow Labrador Retriever in the stock market. For some, owning Intel isn't as sexy as Twitter or Tesla , but from my desk making money never goes out of style. Advanced Micro Devices, on the other hand, produces excellent products and depending on use and application, superior to the comparable Intel offering. >>Apple iPhone Ad Sets Tone for Smart Home Products in the Pipeline I have firsthand knowledge of the differences between Intel and AMD processors. I've sold thousands of them and dollar-for-dollar I know for most applications, AMD processors are a better value. But therein lies the problem and the difference between AMD the company and AMD the stock. Intel enjoys greater pricing power. All else being equal, Intel processors carry a higher selling price. Intel chips are considered superior, and investors don't need to look further than the stock price to figure it out. If you buy shares in Intel, you receive a 3% yield on your money. AMD doesn't pay a dividend. Intel is making new 52-week highs, and AMD's 2013 advance has stalled in 2014. I know there's a lot of attraction towards AMD due to its low share price but the price is what you pay, value is what you receive. Does the above indicate AMD should be sold to buy Intel? Not exactly, in fact, I think an 80/20 holding is appropriate or 80% Intel and 20% AMD. AMD's progress in graphic processing units (GPU) is impressive. Apple L announced the use of AMD's dual FirePro professional graphics solutions in its new Mac Pro. Apple is such a large customer that it significantly moves the needle for AMD. Apple's confidence will undeniably influence other computer makers to consider AMD over Nvidia and Intel. AMD's GPU success reportedly could increase its graphics chip market share to 30% by the end of this year. AMD faces intense competition from graphics producers NVIDIA and Intel. For AMD, exceeding 30% is anything but certain. That said, Intel is ideally positioned to exploit the expected trends in processors. The ability to achieve Moore's law through transistor density is reaching natural limits with current technology due to electrons' ability to cross a conduit gap if paths have too close of proximity to each other. However, using multiple processors inside the same computer is one viable solution to increase computing power. You've likely seen computer's advertisements with multiple cores. More processors within one device is only one way for Intel to continue driving revenue and profits. Another, even more exciting strategy is setting DRAM within the CPU instead of outside on the motherboard. Traditionally, memory on the motherboard is a bottleneck for CPUs and GPUs. GPUs mitigated performance reductions through L1 and L2 memory cache. Other than low-end budget machines, GPUs use their own, high-performance graphics memory. Intel has a superior solution that may change computer design and will lower operating costs. Instead of limiting to L1 and L2 cache on board, Intel is actively working on moving all or at least significantly more memory on-chip and as close to the processing cores as possible. Moving memory on-chip potentially could massively increase revenue and profit per chip, while reducing the cost of a system for the consumer. With the memory on board, manufactures would require fewer inventory SKUs, lower assembly labor costs, higher performance at the same price, and build more stable systems requiring less testing. The increase in revenue and profits by placing memory on-chip should result in greater margins through higher fab utilization rates. As Intel leverages memory on-board, one company investors may want to monitor is Micron . As Intel, Qualcomm and/or AMD begin adding greater quantities of memory into their CPUs, demand for Micron memory may be negatively impacted. Adding memory within the CPU package is a logical, profitable and desirable next step to increase computing performance. As a result, investors have a lot to look forward to. Intel trades at a modestly cheap 14.5 forward price-to-earning's multiple, compared to over 50 for AMD. Because stocks never rise in a straight line and Intel reached a new 52 week high last week, I suggest entering a long position through options. By selling an August $31 put option, you reduce your total risk, and if the shares remain at the current price, your entry price is about $1 less than if you buy the stock outright as of this writing. The August expiration date is less than 50 days away, and Intel needs to appreciate more than $1 higher before experiencing missed gains. At the time of publication, Weinstein had no positions in securities mentioned. Follow @RobertWeinstein Google+ This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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This Week's Currency Market Price Action Forecast

EUR/USD - Euro/dollar continues gaining back lost ground The EUR/USD has recently been making a bit of a comeback after losing significant ground from early May to early June. The market has been slowly grinding higher after bottoming out just above 1.3500 in mid-June. There's a key level of resistance coming in close overhead, near 1.3670. The price action at this level will be important this week; if we get an obvious price action sell signal from there, it could be a good selling opportunity, but if price continues it's recent buoyancy and closes above that resistance on the daily chart, it would be a bullish sign and could open the door for a larger upside run in the coming days and weeks. GBP/USD - Sterling/dollar bullish trend continues The GBP/USD uptrend is still very much intact. The market put in a pretty quiet week last week, forming a weekly chart inside bar, which indicates we could see a stronger move/more price movement this week. This week, traders can look for buying opportunities if the GBP/USD rotates back to support/value near the eight to 21-day EMA support layer to trade in line with the broader daily chart uptrend. AUD USD - Aussie/dollar remains buoyant The AUD USD has been grinding higher recently and is now trading just below a key resistance level near 0.9460 area. If this recent bullish momentum continues this week, we could see the price break above that resistance and continue the recent push higher. If the market stalls at that resistance and rotates lower, we will look to buy from support as we feel the there's good potential for this recent up move to continue in the days and weeks ahead. USD JPY - Dollar/yen weakens, approaching trading range support The USD JPY has been in a large trading range most of this year and has most recently been weakening, moving down closer toward the trading range support. This support is coming in down around 100.75 and what happens there if price tests that level will be very important. If we get an obvious price action buy signal on the daily chart time frame near 100.75, it could be a good buying opportunity. However, a close below 100.75 would essentially invalidate the trading range and possibly open the door for larger downside movement. DJ30 - Dow Jones futures market inside/pin bar combo setup The Dow Jones futures market has been testing key support near 16,690 recently. We can see that a pin bar formed at this level on Thursday, followed by an inside pin bar on Friday. These price action signals indicate that price could push higher, up from this support in the coming days, in-line with the overall uptrend in this market. Copyright 2014 - LearnToTradeTheMarket.com Read more about Nial Fuller, or follow him on Google + , Twitter or Facebook. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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Can Sony Reverse Declining TV Sales With Bravia Android Smart TVs?

NEW YORK (TheStreet) -- Sony is confident its television business will turn a profit this year after a decade of losses, but industry trends suggest it may be easier said than done. Masashi Imamura -- the head of Sony's new TV unit, which will become a separate subsidiary of Sony on July 1 -- told the media on Monday that he was "confident" the company's TV business would grow stronger as a standalone company. Imamura said his company could better respond to market fluctuations after cutting fixed costs last year and handling expenses at distribution companies in the future. Transformers Engine Cranks, but Still Won't Start Audi '15 A8 Is a 868-Mile-Range Tesla-Killer, and Diesel Is the Secret Paychex, Constellation Brands Report Earnings as July Begins Imamura's confidence is a welcome change for Sony's struggling TV unit, but industry trends signal that diminishing TV sales may not be exclusive to Sony. IHS Technology, which tracks sales trends in the television industry, was unavailable to comment on the decline of TV sales over the past decade, but did point to a study it released earlier this year. The study shows that the U.S. television market experienced a 9% loss in unit sales last year due to low demand. Low demand was attributed to market saturation. Consumers have little interest in buying new TVs after upgrading to high-definition, flat screen models less than 10 years ago. U.S. TV shipments in 2013 declined to 34 million units, compared to 37.5 million units in 2012, the report stated. "The TV market in the United States has reached a point of saturation following a period of huge growth in years past, especially as the flat-panel-TV craze set in," IHS TV analyst Veronica Gonzalez-Thayer explained in the report. "As a result of the market's maturity, and also because of lingering uncertainties in the economy, American consumers have been less eager to rush out and buy new replacement TV sets." This finding suggests that although Sony is treating the problem as company-specific, underlying trends in consumer behavior could be the main culprit of declining U.S. television sales. A bright spot in the report, however, shows that there has been an increase in the shipments of large "smart TVs," which have features such as Internet connectivity and full high-definition 1080p resolution. But can Sony's TVs compete more broadly? Imamura said that as a part of his TV unit's new strategy, it will adopt Google's new Android TV software for its Bravia TVs to be launched in the fiscal year starting April 2015. The connected Sony TVs would allow users to access features such as Netflix , as well as music from Pandora and games. The new TVs will compete directly against TV systems offered by Apple , Roku and Amazon . SNE data by YCharts Sony is making a strong push to return its TV unit to profitability, but it looks like the only way to reverse the prevailing trend in declining sales is to think outside the box. Let's hear from TheStreet Ratings on Sony: TheStreet Ratings team rates SONY CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: "We rate SONY CORP (SNE) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 17.4%. Since the same quarter one year prior, revenues rose by 41.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that SNE's debt-to-equity ratio is low, the quick ratio, which is currently 0.61, displays a potential problem in covering short-term cash needs. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Household Durables industry. The net income has significantly decreased by 228.4% when compared to the same quarter one year ago, falling from $1,044.22 million to -$1,340.40 million. Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Household Durables industry and the overall market, SONY CORP's return on equity significantly trails that of both the industry average and the S&P 500. You can view the full analysis from the report here: SNE Ratings Report Bullard: A Hawk at the Fed?; Parsing Markit Data: Best of Kass Six Flags Rewards Investors Post-Bankruptcy At the time of publication, the author had no position in any of the funds mentioned. Follow @macroinsights // 0;if(!d.getElementById(id)){js=d.createElements);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); // ]]> This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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GW Pharma Rises After Analyst Sees Promise in Marijuana-Derived Epilepsy Drug

NEW YORK (TheStreet) -- Shares of GW Pharmaceuticals are climbing after research firm Piper Jaffray sharply raised its price target on the stock after attending a conference of the Dravet Foundation and speaking with epilepsy specialists. Dravet Syndrome is a form of epilepsy and the foundation raises money to combat it. GW has created a drug for the treatment of seizures based on cannabinoid, one of the components of marijuana. WHAT'S NEW: After attending the conference, Piper Jaffray analyst Dr. Joshua Schimmer wrote that he is more confident that GW's epilepsy treatment, Epidiolex, is "a highly attractive emerging therapy" for the disease. Epidiolex has a unique combination of safety and effectiveness, the analyst believes. Children with Dravet who are treated with Epidiolex have fewer seizures and can take lower doses of other medicines, while the social skills of many of them improve, Schimmer reported. He increased his price target on GW to $147 from $97 and kept an Overweight rating on the stock. WHAT'S NOTABLE: Eventually Epidiolex's use should extend far beyond difficult to treat cases of Dravet, the analyst forecast. A logical potential use for the drug is as a treatment for autism, Schimmer believes. There is a strong correlation between autism and Dravet Syndrome or frequent seizures, he explained. Additionally, there are "anecdotal reports" that autism patients have responded very well to cannabinoids and GW and specialists are becoming more confident that a number of autism patients will benefit from them, he reported. PRICE ACTION: In early trading, GW Pharmaceuticals shares climbed 8.5% to $104.35. Reporting by Larry Ramer.

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