Express Lane

In This Issue: Express Lane Cold Weather, Hot Stock   Buy, Buy, Buy! Are you looking for the kind of stock that has the potential to turn $10,000 into $214,290? Then look no further. I've discovered a tiny $5 tech stock that's exploiting a stunning new wave of the Internet. When it hits its stride, it has the potential to deliver gains of 2,042%. I assure you, that's not an exaggeration. It's perfectly priced, and its long-term prospects have never been better. If you want to experience the thrill of your investing lifetime, you'll want to pick up shares of this fast mover now to ensure maximum profits. Get its name by clicking here – before it's too late. Express Lane 12/30/2014 By Thomas Scarlett The U.S. Commerce Dept. just released some good news to close out 2014: Consumer confidence in the United States rose in December, up to 92.6 from 91 in November. Along with the recent GDP numbers, this indicates that consumer spending should be significantly higher in 2015 than it was in the year just ending. That's good news for credit card companies, since most purchases today are made using some form of plastic. One company that is particularly well situated is American Express Company (NYSE: AXP). Morgan Stanley recently recommended Amex as a good buy, based on "ramping up consumer spending" as well as "higher merchant penetration through OptBlue." OptBlue is a rapidly expanding initiative by Amex to get more small businesses to take the American Express card. There are now 10 participating acquirers in OptBlue, five of which are among the top 10 in the United States. Amex has historically done well with its brand image as the more upscale credit card, with a wider range of services for the more affluent consumer and traveler. But now it is trying to expand its market presence, with impressive results. With OptBlue, participants have the flexibility to provide U.S. small merchants the benefit of a single statement, one settlement process, and one contact for all the major card brands. Participants determine merchant pricing in addition to providing payment processing and servicing. OptBlue will help expand American Express' U.S. small merchant coverage, providing consumers more payment options at local businesses. "OptBlue is part of American Express' ongoing commitment to enhance the U.S. small merchant experience and is an evolution of our acquiring business," said Ed Jay, Executive Vice President, American Express. "The program will help deliver a smart and easy solution for U.S. small merchants to enjoy the benefits of American Express Card acceptance while making it convenient for consumers to Shop Smallyear round." Amex has also been developing new partnerships and services with Uber, Apple Pay and McDonald's that are helping it to capitalize on the convergence of online and offline commerce. The company recently reported third-quarter net income of $1.5 billion, up 8 percent from $1.4 billion a year ago. Earnings per share were $1.40, up 12 percent from $1.25 a year ago.The company's return on average equity (ROE) was 28.8 percent, up from 24.3 percent a year ago. "We delivered another solid quarter of financial results," said Kenneth Chenault, chairman and chief executive officer. "Card Member spending was up 9 percent, a modest acceleration from last quarter, and loan balances grew 5 percent." The company's focus is on delivering earnings growth in an environment that is characterized by rapidly changing technologies, intense competition, and regulation. For example, American Express has announced the launch of its American Express Token Service, a suite of solutions designed to enable its card-issuing partners, processors, acquirers and merchants to create a safer online and mobile payments environment for consumers. With American Express Token Service, traditional card account numbers are replaced with unique "tokens," which can then be used to complete payment transactions online, in a mobile app or in-store with a mobile Near Field Communication (NFC)-enabled device. By using tokens, merchants and digital wallet operators will no longer need to store consumers' sensitive payment account information in their systems. In addition, tokens can be assigned for use with a specific merchant, transaction type or payment device to provide further protection against fraud. Other partnerships with big companies are on the horizon. Amex and Delta Air Lines (NYSE: DAL) -- another recent "Stocks to Watch" pick, by the way --announced a multiyear extension of their exclusive co-brand Credit Card. The deal includes continuation of Delta as a Card-accepting merchant and as a participant in the Membership Rewards program from American Express. In addition, Platinum Card Members from American Express and Delta Reserve Card Members can continue to enjoy access to the Delta Sky Club, their network of proprietary airport lounges. Also as part of this extension, a previously announced annual limit on point transfers from the Membership Rewards program from American Express to the Delta SkyMilesprogram will not be implemented. This allows Card Members to transfer Membership Rewards points to the SkyMiles program, without being subject to an annual transfer limit. With such a well-known brand name and increasing market penetration, the company has a surprisingly low price-earnings ratio of just 17. The stock is a buy up to 100. Tom Scarlett is an investment analyst at Personal Finance and its parent web site Investing Daily. Solar-Generated Electricity – for 400,000 People! Forget everything you think you know about scalable solar energy. The era of utility-scale solar power has arrived. My top-secret pick is ready to unveil a 550-megawatt solar power plant that's the equal of the average coal-fired plant – and can cleanly electrify a city the size of Oakland, CA, all by itself. This is proof that utility-scale solar power is here to stay. If you only buy ONE stock for your piece of the action, this is it. To see the project, go straight here. Cold Weather, Hot Stock 12/26/2014 By Benjamin Shepherd It's been a fairly cold winter so far, with many regions of the United States already getting socked with heavy snowfalls.That's great news for Polaris Industries (NYSE: PII) which, in addition to designing and building off-road and all-terrain vehicles and motorcycles, has been a major manufacturer of snowmobiles for more than six decades now. It is also a major supplier of light troop vehicles to the defense establishment. Full-year 2013 sales grew by 18% last year to $3.8 billion, largely thanks to its massive sales network of more than 1,750 dealers here in North America and more than 1,400 in more than 100 foreign countries. Here in the US, one-in-three power-sport vehicle sales in a Polaris. One of the reason Polaris's products are so popular is the company's devotion to research and development (R&D). With five R&D centers, the company typically spends about 4% of its revenue on innovating new products and features. Those efforts are key because, while I have no sexist intentions here, when men buy high-end toys, they tend to want the best available. And the company's own market research shows that about 90% of its buyers are men with incomes of about $100,000, so they can usually afford the best. That spending is a major reason why Polaris is able to offer 18 new off-road vehicle models, five new motorcycle models and more than 300 new accessories for the 2015 model year alone. Aside from that, the company has also done an amazing job of managing its balance sheet. The company currently has a debt-to-equity ratio of just 0.3 as compared to an industry average of 1.0, having paid off more than $120 million in debt so far this year. It also has about $169 million of cash on hand, though that number can fluctuate depending on its acquisition, capital investment and R&D plans. For instance, the company spent a sizable chunk of cash building a new off-road vehicle manufacturing plant in Opole, Poland, which opened in September. Its first such facility outside of North America, the plant covers 345,000 square feet and is expected to being shipping out new vehicles in the first quarter. With manufacturing now able to be completed closer to the company's European customer base, the plant is actually expected save company about $20 million annually in reduced labor and shipping costs. A second plant is also planned for India. Polaris has also shown a strong dedication to creating shareholder value, recently bumping its share repurchase program up from $100 million to $200 million. It also pays a small but consistently growing dividend, averaging about 18% growth over the past five years. The company is on track to payout a total of $1.92 for 2014, resulting in a yield of about 1.2%. Polaris also has a strong commitment to lean manufacturing principles, so while its revenue has grown an average of 8.9% yearly over the past decade, earnings per share (EPS) have shot up by 15.8%. Operating expenses are expected to fall by about 0.7% this year alone. The company expects full-year 2014 revenue to grow by about 18% to between $4.425 billion and $4.475 billion, with EPS up by as much as 23% to $6.65. Wall Street expects earnings to come in slightly lower than that, falling closer to the midpoint of management's guidance at $6.62, but Polaris has a strong history of surprising to the upside. Analysts forecast another strong year in 2015, with a mean estimate of 20.1% EPS growth to $7.95 with average growth of 16.2% over the next five years. While there is some risk to owning Polaris, such as a tightening of consumer credit availability, it has historically weathered downturns fairly well. It has also been consistently expanding its geographic footprint, either by pushing into new markets itself or by acquiring companies which are already operating in new territories. Throw in the fact that management has kept costs down and maintained a solid balance sheet, nothing short of another major recession should have a huge impact. And if the winters in the Northern Hemisphere continue worsening, it might find whole new markets opening up to it. With a solid balance sheet and steadily growing sales, Polaris Industries is a good buy up to $167. Is The New York Times Right? Market alarmists are warning of a market meltdown worse than 2008. Moneynews.com predicts a 50% crash in 2014. The New York Times says it's time to worry about a stock bubble. If you're at or near retirement, you don't need this stress. In fact, now may be a good time to play it safe with your nest egg. One income strategist is offering a "Stress-Free" Portfolio filled with high-dividend stocks from the U.S. and around the world. They offer stable cash flows and steady, reliable profits from yields of 10.05%, 10.10%, and 10.32%. It's worth a look. Details here. You are receiving this email at benjamart.ss.stock@blogger.com as part of your subscription to Investing Daily's Stocks To Watch, published by Investing Daily. To ensure delivery directly to your inbox, please add postoffice@investingdaily.com to your address book today. Email Preferences | About Us | Premium Services | Contact Us | Privacy Policy Copyright 2014 Investing Daily. All rights reserved. Investing Daily, a division of Capitol Information Group, Inc. 7600A Leesburg Pike West Building, Suite 300 Falls Church, VA 22043-2004 U.S.A.