Pipeline Setback for Roche - Analyst Blog

Top 5 Cheap Stocks To Invest In 2014

Roche (RHHBY) recently suffered a setback when it announced the termination of its phase III trial, AleCardio, on pipeline candidate aleglitazar.

The decision to terminate the trial came after the independent Data and Safety Monitoring Board (DSMB) recommended the company halt the trial due to safety signals and lack of efficacy following a regular safety review.

We note that the trial was being conducted to evaluate the efficacy and safety of aleglitazar in patients with a recent acute coronary syndrome event and type II diabetes.

In addition to scrapping the AleCardio trial, Roche said that it has terminated all other trials related to aleglitazar.

We note that aleglitazar was designed to provide balanced dual peroxisome proliferator-activated receptor (PPAR) alpha/gamma activation.

We remind investors that companies like AstraZeneca (AZN) and Bristol-Myers Squibb (BMY) had also attempted to develop a diabetes drug using this dual mechanism but failed.

We remind investors that Roche had suffered a setback in 2012 as well when it terminated its phase III trial on dalcetrapib after the independent DSMB cited lack of efficacy.

The trial was evaluating dalcetrapib's efficacy and safety when added to the existing standard of care for the treatment of patients with stable coronary heart disease (CHD) following an acute coronary syndrome.

Nevertheless, Roche has another candidate, tofogliflozin in phase III, which is being developed to increase renal glucose excretion in patients with type II diabetes.

We expect investor focus on tofogliflozin henceforth.

Roche currently carries a Zacks Rank #4 (Sell). Right now, Santarus, Inc (SNTS) looks attractive with a Zacks Rank #1 (Strong Buy).

First Trust Rolls Out Managed Futures Fund (FMF)

Top 5 Stocks To Watch For 2014

Amid the calm trading environment, several issuers beefed up their product lineups last week, including the launch of the first ever city-based fund; the Nashville Area ETF offers a truly unique strategy that takes the theme of "targeted exposure" to the next level. VelocityShares also rolled out an intriguing Risk-Weighted ETF that offers a new take on the increasingly popular low volatility strategy. First Trust also snuck in a launch last week when it rolled out the Managed Futures Strategy Fund (FMF) on Friday .

FMF: Many Trading Strategies, One Ticker

This new ETF marks First Trust's entrance into the world of Hedge Fund ETFs, which has grown considerably in the last few years as investors grow more comfortable with utilizing the exchange-traded product wrapper to access alternative asset classes. FMF looks to achieve positive returns that exceed the performance of its benchmark, the Morningstar Diversified Futures Index; this actively-managed fund works to achieve its objective be generating returns that are not directly correlated to broad market returns by employing long, short, and flat futures trading strategies to a basket of commodities, currencies and equities . 

Given its active nature, FMF's portfolio is bound to change over time, but it will generally look to maintain roughly half of its total assets allocated to commodity futures, a quarter to equity futures, and the remaining across currencies. 

Meet The CompetitionThe new First Trust ETF will go head-to-head with an existing WisdomTree ETF, the Managed Futures Strategy Fund , which has accumulated nearly $140 million in assets under management since launching at the start of 2011. By comparison, FMF charges the same 0.95% expense fee as WDTI, which will make it more challenging for the newcomer to establish a presence in the space . 

FMF warrants a closer look from anyone l! ooking to add alternatives exposure to their portfolio; historically, managed futures trading strategies have offered the potential to improve your portfolio's risk-adjusted returns over the long-haul. 

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Disclosure: No positions at time of writing

German Stocks Advance as Euro-Area Confidence Improves

German stocks advanced as a report showed euro-area consumer confidence increased more in August than estimated, outweighing worse-than-forecast U.S. home sales.

Commerzbank AG gained for a third day on speculation the German government may sell its 17 percent stake in the lender. GSW Immobilien AG (GIB) slipped 0.9 percent after HSBC Holdings Plc downgraded its rating on Berlin's largest residential landlord.

The DAX Index (DAX) added 0.2 percent to 8,416.99 at the close of trading in Frankfurt, for a weekly gain of 0.3 percent. The benchmark index has traded within a 2.3 percent range since July 17 as volumes fell and investors awaited more economic reports to assess the strength of the economy. The broader HDAX Index rose 0.3 percent today.

"We are buyers of European equities because they were oversold," said London-based Nick Lyster, who helps oversee $292 billion as chief executive officer in Europe for Principal Global Investors. "While we are not expecting any fireworks, the economy in Europe is a lot better than it was."

The DAX has rallied 9.4 percent from its low on June 24 as the European Central Bank said that interest rates will remain low for an extended period and manufacturing and gross domestic product data in the country beat estimates.

The volume of shares changing hands in DAX-listed companies was 24 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.

Euro-area consumer confidence increased more in August than economists estimated. An index of household confidence improved for a ninth month to minus 15.6, the highest level since July 2011, from minus 17.4 in the previous month, the European Commission said in a preliminary report. Economists had forecast an increase to minus 16.5, according to the median of 26 estimates in a Bloomberg News survey.

U.S. Homes

Purchases of new U.S. homes plunged in July by the most in more than three years and previous months were revised down. Sales of newly built homes declined 13.4 percent to a 394,000 annualized pace, the weakest since October, following a 455,000 rate in the prior period that was lower than previously estimated, Commerce Department figures showed today in Washington. The median estimate of 74 economists surveyed by Bloomberg called for a decrease to 487,000.

German gross domestic product climbed 0.7 percent in the second quarter, the Federal Statistics Office in Wiesbaden said today, confirming an Aug. 14 estimate. The economy grew 0.5 percent from a year earlier when adjusted for working days.

Commerzbank Gains

Commerzbank advanced 2.6 percent to 8.83 euros as analysts said the German government may be preparing to dispose of its stake in the country's second-largest lender.

"We think that it is true that the German government is considering various options to sell its Commerzbank stake," Equinet AG wrote in a report today. "In our view, CBK's core bank would be clearly interesting for foreign banks that are interested in entering the German market."

Lanxess AG rose 1.1 percent to 48.94 euros and BASF AG added 1.1 percent to 69.03 euros. A gauge of chemical-related companies advanced on the Stoxx Europe 600 Index.

GSW slipped 0.9 percent to 33.13 euros. HSBC cut the shares to underweight, similar to a sell rating, from neutral, saying they are worth 31.8 euros apiece. GSW surged to the highest price since its 2011 initial public offering on Aug. 20 after Deutsche Wohnen AG made an all-share bid for the company that would create the second-largest owner of German homes.

Barney Frank Defends Dodd-Frank at TDAI Elite Advisor Summit

“I was expecting the William Tell overture as my introduction music,” former congressman Barney Frank said to laughter at the TD Ameritrade 2013 Elite Summit in Palm Beach, Fla., on Wednesday morning.

The legendary curmudgeon and bane of political opponents was well-received by the advisors in attendance as he described the reasoning behind the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as his views on the fiduciary standard.

The 16-term congressman and former chairman of the House Financial Services Committee began by noting the “two important systems” on which the country runs, the private and the public.

“The private system creates wealth and innovation,” he noted as a way to introduce his explanation of Dodd-Frank. “The public system sets the rules by which the private sector conducts itself, as well as doing the things the private sector can’t, but which citizens still demand.”

Frank said that during congressional hearings into the causes of the 2008 financial crisis, “I kept hearing over and over again how financial services firms had to do what they did because of competition.” He specifically noted former Citigroup CEO Chuck Prince’s explanation for using structured debt because “not to would put Citigroup at a competitive disadvantage to Goldman Sachs.”

“At some point innovation in society reaches critical mass, and a sea change occurs,” Frank said. “Because it’s all completely new there are no rules to govern it.”

Such was the case with innovation coming from Wall Street, he argued.

“In 1850, there were no large, national enterprises in this country. By 1890, there was coal, railroads and manufacturing, among others. But it wasn’t until the Sherman Antitrust Act and really the Roosevelt administration that rules were established.”

The same can be said of what happened more recently with securitization, according to Frank.

“It used to be that there was a strict lender-borrower relationship; the person who lent the money expected to get paid back. With securitization, loans were made by institutions with no expectation of being paid back. It actually encouraged bad loans because they could collect transaction fees before the loans were sold.”

Calling rating agencies the “worst” performers of the crisis, he noted “they didn’t even sample the loans they were rating, they just had an equation they’d use.”

With Dodd-Frank, he said, “we did not fix prices, like some people wanted me to do with limiting credit card interest rates. We wanted to put risk back on the lender."

Referring to a recent article in The Wall Street Journal, a news outlet he said could hardly be accused of being in his favor, he noted that the majority of derivatives transactions, a major cause of the crisis, are now performed on an exchange between a buyer and seller.

Hot Medical Companies To Invest In 2014

The medical device industry as a whole is under fire. Pricing pressures, the ongoing European recession, and tough competition have all come together to hit revenues at leading device makers. Medtronic (NYSE: MDT  ) hasn't been immune to those damages as the largest pure medical device maker, and its spine business -- its second-largest segment �by sales -- has seen revenue fall 5% over the last nine months as a result.

What's Medtronic's response? The company plans to cut 230 jobs at its spine business and slash costs by 5% in order to compensate for the falling sales. With other companies in the industry also seeing spine revenue lagging --�Stryker's (NYSE: SYK  ) own spine sales fell 4% in 2012 -- will this measure be enough? Motley Fool contributor Dan Carroll and health care analyst Max Macaluso discuss this question and more in the video below.

Hot Medical Companies To Invest In 2014: Hanger Orthopedic Group Inc.(HGR)

Hanger Orthopedic Group, Inc. engages in the ownership and operation of orthotic and prosthetic (O&P) patient care centers in the United States. The company provides orthotic and prosthetic patient care services. Its orthotics business include the design, fabrication, fitting, and maintenance of a range of standard and custom-made braces and other devices that provide external support to patients suffering from musculoskeletal disorders, such as ailments of the back, extremities or joints, and injuries from sports or other activities. The company?s prosthetics business comprise designing, fabricating, fitting, and maintaining custom-made artificial limbs for patients, who are without limbs as a result of traumatic injuries, vascular diseases, diabetes, cancer, or congenital disorders. It also distributes branded and private label O&P devices, as well as develops programs to manage various aspects of O&P patient care for insurance companies. In addition, the company manufac tures and distributes therapeutic footwear for diabetic patients in the podiatric market, as well as develops and provides specialized rehabilitation technologies and integrated clinical programs to rehabilitation providers. As of June 30, 2011, it operated approximately 675 patient-care centers in 45 states and the District of Columbia. The company, formerly known as Sequel Corporation, was founded in 1861 and is headquartered in Austin, Texas.

Advisors' Opinion:

• [By Newsy Stocks]

  Hanger Orthopedic Group Inc. (NYSE: HGR) engages in the ownership and operation of orthotic and prosthetic (OP) patient care centers in the United States. The company has a total market capitalization of $601.8 million and in the last 1-year the stock has given a return of 34 percent. The company does not pay any dividend to its stockholders, and has a price of profit (POP) of 10. The stock is trading at a P/E of 20.92, higher than the industry’s average P/E of 14.15. The PEG ratio of the stock is 0.86 years, lower than industry’s PEG of 1 year. The average 5 years historical earnings growth is 25.60 percent and is expected to grow at 15 percent for the next 5 years. Its quarterly revenue growth is estimated at 17.12 percent. The stock has a P/B value of 1.54x percent. Analyst at Jefferies brokerage firm has given it a buy rating on $31.20 price target. Based on the price target the stock is trading at a discount of 42.44 percent. HGR was up 2.04 percent to $18.53 on Wednesday.

Hot Medical Companies To Invest In 2014: Galena Biopharma Inc (GALE.PH)

Galena Biopharma, Inc. (Galena), formerly RXi Pharmaceuticals Corporation, incorporated on April 3, 2006, is a biotechnology company focused on discovering, developing and commercializing therapies addressing unmet medical needs using targeted biotherapeutics. The Company is pursuing the development of cancer therapeutics using peptide-based immunotherapy products, including its main product candidate, NeuVaxTM (E75), for the treatment of breast cancer and other tumors. NeuVax is a peptide-based immunotherapy intended to reduce the recurrence of breast cancer in low-to-intermediate HER2-positive breast cancer patients not eligible for trastuzumab (Herceptin; Genentech/Roche). On January 19, 2012, the Company initiated enrollment in its Phase 3 PRESENT clinical trial for NeuVax (E75 peptide plus GM-CSF) vaccine in low-to-intermediate HER2 1+ and 2+ breast cancer patients in the adjuvant setting to prevent recurrence (Clinicaltrials.gov identifier NCT01479244). The Preven tion of Recurrence in Early-Stage, Node-Positive Breast Cancer with Low to Intermediate HER2 Expression with NeuVax Treatment study is a randomized, multicenter, multinational clinical trial that will enroll approximately 700 breast cancer patients. The Company�� Phase 2 trial of NeuVax achieved its primary endpoint of disease-free survival (DFS). On April 13, 2011, the Company completed its acquisition of Apthera, Inc.,(Apthera).

The Company focuses to start a Phase 2 trial comparing NeuVax in combination with trastuzumab (Herceptin) versus trastuzumab, alone, in a 300-patient, randomized study in the adjuvant breast cancer setting. The Company's second product candidate, Folate Binding Protein-E39 (FBP), is a vaccine, consisting of the peptides E39 and J65, aimed at preventing the recurrence of ovarian, endometrial, and breast cancers. On February 14, 2012, the Company announced the initiation of a Phase 1/2 clinical trial in two gynecological cancers: ovari an and endometrial adenocarcinomas. Folate binding protein! h! as very limited tissue distribution and expression in non-malignant tissue and is over-expressed in more than 90% of ovarian and endometrial cancers, as well as in 20% to 50% of breast, lung, colorectal and renal cell carcinomas.

In April 2011, the Company acquired Apthera Inc and its NeuVax product candidate. The Company focuses on developing a pipeline of immunotherapy product candidates for the treatment of various cancers based on the E75 peptide, the advanced of which is NeuVax, which is targeted at preventing the recurrence of breast cancer. NeuVax has had positive Phase 1/2 clinical trial results for the prevention of breast cancer recurrence in patients who have had breast cancer and received the standard of care treatment (surgery, chemotherapy, radiotherapy and hormonal therapy as indicated). The Company had also initiated its Phase 3 PRESENT clinical trial of NeuVax for the prevention of breast cancer recurrence in early-stage low-to-intermediate HER2 breast cancer patients. NeuVax directs killer T-cells to target and destroy cancer cells that express HER2/neu, a protein associated with epithelial tumors in breast, ovarian, pancreatic, colon, bladder and prostate cancers. NeuVax is comprised of a HER2/neu-derived peptide called E75. E75 is a nine-amino acid sequence that is immunogenic (produces an immune response) and GM-CSF is a commercially available protein that acts to stimulate and activate components of the immune system such as macrophages and dendritic cells.

The Company also develops novel applications for NeuVax based on preclinical studies and phases 2 clinical trials which suggest that combining NeuVax and trastuzumab (Herceptin; Genentech/Roche) can increase antigen presentation by tumor cells by promoting receptor internalization and subsequent proteosomal degradation of the HER2 protein. The Company also is pursuing additional therapeutic indications for NeuVax that are in Phase 1/2 clinical trials. RXI-109, is a dermal anti-scarring therapy that ! targ! ets! conne! ctive tissue growth factor (CTGF) and that may inhibit connective tissue formation in human fibrotic disease.

The Company competes with Roche Laboratories, Inc., Pfizer Inc., Bayer HealthCare AG, Sanofi-Aventis, US, LLC, Amgen, Inc., GlaxoSmithKline plc, Renovo Group plc, CoDa Therapeutics, Inc., Sirnaomics, Inc., FirstString Research, Inc., Merz Pharmaceuticals, LLC, Capstone Therapeutics, Halscion, Inc., Garnet Bio Therapeutics, Inc., AkPharma Inc., Promedior, Inc., Kissei Pharmaceutical Co., Ltd., Eyegene, Derma Sciences, Inc., Healthpoint Biotherapeutics, Pharmaxon, Excaliard Pharmaceuticals, Inc., Alnylam Pharmaceuticals, Inc., Marina Biotech, Inc., Tacere Therapeutics, Inc., Benitec Limited, OPKO Health, Inc., Silence Therapeutics plc, Quark Pharmaceuticals, Inc., Rosetta Genomics Ltd., Lorus Therapeutics, Inc., Tekmira Pharmaceuticals Corporation, Arrowhead Research Corporation, Regulus Therapeutics Inc. and Santaris.

Top Bank Companies To Invest In 2014: Boston Scientific Corp (BSX)

Boston Scientific Corporation is a developer, manufacturer and marketer of medical devices that are used in a range of interventional medical specialties. During the year ended December 31, 2011, its products were offered for sale by seven core businesses: Interventional Cardiology, CRM, Endoscopy, Peripheral Interventions, Urology/Women�� Health, Neuromodulation, and Electrophysiology. In January 2011, it completed the acquisition of Intelect Medical, Inc. In January 2011, it completed the acquisition of Sadra Medical, Inc. In March 2011, the Company completed the acquisition of Atritech, Inc. In February 2011, it announced the acquisitions of S.I. Therapies and ReVascular Therapeutics, Inc. In January 2011, the Company sold its Neurovascular business to Stryker Corporation. In June 2012, the Company acquired Cameron Health, Inc. of San Clemente, California and, as a result, added to its product portfolio subcutaneous implantable cardioverter defibrillator, called the S-ICD System.

Interventional Cardiology

The Company offers coronary stent product. Coronary stents are tiny, mesh tubes used in the treatment of coronary artery disease, which are implanted in patients to prop open arteries and facilitate blood flow to and from the heart. The Company offers a two-drug platform strategy with its paclitaxel-eluting and everolimus-eluting stent system offerings, and it offers a range of stent sizes. The Company markets its next-generation internally-developed and self-manufactured PROMUS Element stent system in the United States, its Europe/Middle East/Africa (EMEA) region and certain Inter-Continental countries, including China and India. It markets the PROMUS everolimus-eluting stent system, supplied to the Company by Abbott Laboratories, in Japan. It also markets its TAXUS paclitaxel-eluting stent line, including its third-generation TAXUS Element paclitaxel-eluting stent system in the U.nited States, Japan, EMEA and certain Inter-Continental countries.

The Compa! ny markets a line of products used to treat patients with atherosclerosis, a principal cause of coronary artery obstructive disease. Its product offerings include balloon catheters, rotational atherectomy systems, guide wires, guide catheters, embolic protection devices, and diagnostic catheters used in percutaneous transluminal coronary angioplasty (PTCA). The Company markets a family of intraluminal catheter-directed ultrasound imaging catheters and systems for use in coronary arteries and heart chambers, as well as certain peripheral vessels. The iLab Ultrasound Imaging System continues as its flagship console and is compatible with its line of imaging catheters. The system is designed to enhance the diagnosis and treatment of blocked vessels and heart disorders. Sadra is developing a repositionable and retrievable device for transcatheter aortic valve replacement (TAVR) to treat patients with severe aortic stenosis. The Lotus Valve System consists of a stent-mounted tissue valve prosthesis and catheter delivery system for guidance and placement of the valve. Atritech has developed a device designed to close the left atrial appendage in patients with atrial fibrillation who are at risk for ischemic stroke. The WATCHMAN Left Atrial Appendage Closure Technology, developed by Atritech, is the first device proven in a randomized clinical trial to offer an alternative to anticoagulant drugs, and is approved for use in CE Mark countries.

Cardiac Rhythm Management

The Company develops, manufactures and markets a variety of implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities, including Implantable cardioverter defibrillator (ICD) systems used to detect and treat abnormally fast heart rhythms (tachycardia) that could result in sudden cardiac death, including implantable cardiac resynchronization therapy defibrillator (CRT-D) systems used to treat heart failure, and implantable pacemaker systems used to manage slow or irregular heart rhyth! ms (brady! cardia), including implantable cardiac resynchronization therapy pacemaker (CRT-P) systems used to treat heart failure. Its product offerings include its COGNIS cardiac resynchronization therapy defibrillator (CRT-D), its TELIGEN ICD systems and its ALTRUA family of pacemaker systems. During 2011, it began the United States launch of its next-generation line of defibrillators, INCEPTA, ENERGEN and PUNCTUA.

Endoscopy

The Company markets a range of products to diagnose, treat and ease a variety of digestive diseases, including those affecting the esophagus, stomach, liver, pancreas, duodenum, and colon. Common disease states include esophagitis, portal hypertension, peptic ulcers as well as esophageal, biliary, pancreatic and colonic cancer. The Company offers the Radial Jaw 4 Single-Use Biopsy Forceps, which are designed to enable collection of large high-quality tissue specimens without the need to use large channel therapeutic endoscopes. Its exclusive line of RX Biliary System devices are designed to provide greater access and control for physicians to diagnose and treat challenging conditions of the bile ducts, such as removing gallstones, opening obstructed bile ducts and obtaining biopsies in suspected tumors. The Company also markets the Spyglass Direct Visualization System for direct imaging of the pancreatico-biliary system. The Spyglass System is a single-operator cholangioscopy device that offers clinicians a direct visualization of the pancreatico-biliary system and includes supporting devices for tissue acquisition, stone management and lithotripsy. Its products also include the WallFlex family of stents, in particular, the WallFlex Biliary line and WallFlex Esophageal line; and in 2011, the Company launched its Advanix Biliary Plastic Stent System and the Expect Endoscopic Ultrasound Aspiration Needle in the United States and certain international markets. Its Resolution Clip Device is an endoscopic mechanical clip designed to treat gastrointestinal bleeding.

T! he Company markets devices to diagnose, treat and ease pulmonary disease systems within the airway and lungs. Its products are designed to help perform biopsies, retrieve foreign bodies from the airway, open narrowings of an airway, stop internal bleeding, and ease symptoms of some types of airway cancers. Its product line includes pulmonary biopsy forceps, transbronchial aspiration needles, cytology brushes and tracheobronchial stents used to dilate narrowed airway passages or for tumor management. Asthmatx, Inc. designs, manufactures and markets a less-invasive, catheter-based bronchial thermoplasty procedure for the treatment of severe persistent asthma. The Alair Bronchial Thermoplasty System, developed by Asthmatx, has both CE Mark and Food and Drug Administration (FDA) approval and is the first device-based asthma treatment approved by the FDA.

Peripheral Interventions

The Company sells various products designed to treat patients with peripheral disease, including a line of medical devices used in percutaneous transluminal angioplasty and peripheral vascular stenting. Its peripheral product offerings include stents, balloon catheters, wires, peripheral embolization devices and vena cava filters. In 2010 and 2011, it launched several of its products internationally, including the EPIC self-expanding nitinol stent system in certain international markets, and the Carotid WALLSTENT stent system in Japan. The Company launched three new peripheral angioplasty balloons in 2011, including its next-generation Mustang percutaneous transluminal angioplasty (PTA) balloon, its Coyote balloon catheter, a highly deliverable and ultra-low profile balloon dilatation catheter designed for a range of peripheral angioplasty procedures and its Charger PTA Balloon Catheter, a 0.035 inch percutaneous transluminal angioplasty balloon catheter designed for post-stent dilatation, as well as conventional balloon angioplasty to open blocked peripheral arteries. The Company has commenced a limited ma! rket rele! ase of its OFFROAD re-entry catheter system in certain international markets, and in February 2012, it launched its TRUEPATH intraluminal CTO device in the United States.

The Company sells products designed to treat patients with non-vascular disease. Its non-vascular suite of products include biliary stents, drainage catheters and micro-puncture sets designed to treat, diagnose and ease various forms of benign and malignant tumors. The Company continues to market its extensive line of Interventional Oncology product solutions, including the Renegade HI-FLO Fathom microcatheter and guidewire system and Interlock - 35 Fibered IDC Occlusion System for peripheral embolization. The Company�� FilterWire EZ Embolic Protection System is a filter designed to capture embolic material that may become dislodged during a procedure, which could otherwise travel into the microvasculature where it could cause a heart attack or stroke. It is commercially available in the United States, its EMEA region and certain Inter-Continental countries for multiple indications, including the treatment of disease in peripheral, coronary and carotid vessels. It is also available in the United States for the treatment of saphenous vein grafts and carotid artery stenting procedures.

Urology/Women�� Health

The Company�� Urology/Women�� Health division develops, manufactures and sells devices to treat various urological and gynecological disorders. The Company sells a variety of products designed to treat patients with urinary stone disease, stress urinary incontinence, pelvic organ prolapse and excessive uterine bleeding. The Company offers a line of stone management products, including ureteral stents, wires, lithotripsy devices, stone retrieval devices, sheaths, balloons and catheters.

The Company markets a range of devices for the treatment of conditions, such as female urinary incontinence, pelvic floor reconstruction (rebuilding of the anatomy to its original state), and ! menorrhag! ia (excessive menstrual bleeding). It offers a breadth of mid-urethral sling products, sling materials, graft materials, pelvic floor reconstruction kits, and suturing devices. The Company markets its Genesys Hydro ThermAblator (HTA) system, a next-generation endometrial ablation system designed to ablate the endometrial lining of the uterus in premenopausal women with menorrhagia. The Genesys HTA System features a smaller and lighter console, simplified set-up requirements, and an enhanced graphic user interface and is designed to improve operating performance.

Neuromodulation

The Company within its Neuromodulation business markets the Precision Spinal Cord Stimulation (SCS) system, used for the management of chronic pain. In 2011, the Company launched its Clik Anchor for its Precision Plus SCS System, a rechargeable SCS device for chronic pain management. During 2011, it received FDA approval for and launched the Infinion 16 Percutaneous Lead, a 16-contact percutaneous lead. The Company also markets the Linear 3-4 and Linear 3-6 Percutaneous Leads for use with its SCS systems, which are designed to provide physicians more treatment options for their chronic pain patients. Intelect Medical, Inc. is a development-stage company developing advanced visualization and programming for the Vercise system.

Electrophysiology

The Company within its Electrophysiology business develops less-invasive medical technologies used in the diagnosis and treatment of rate and rhythm disorders of the heart. Included in its product offerings are radio frequency (RF) generators, steerable RF ablation catheters, intracardiac ultrasound catheters, diagnostic catheters, delivery sheaths, and other accessories. Its products include the Blazer and Blazer Prime line of temperature ablation catheters, designed to deliver enhanced performance, responsiveness, and durability. Its cooled ablation portfolio includes the closed-loop irrigated catheter on the market, the Chilli II cooled! ablation! catheter, and the newly launched Blazer Open-Irrigated ablation catheter with a Total Tip Cooling Design.

The Company competes with Abbott Laboratories, Medtronic, Inc., St. Jude Medical, Inc. and Johnson & Johnson.

Hot Medical Companies To Invest In 2014: EntreMed Inc (ENMD)

EntreMed, Inc. (EntreMed), incorporated in 1991, is a clinical-stage pharmaceutical company. EntreMed's drug candidate is ENMD-2076, an Aurora A and angiogenic kinase inhibitor for the treatment of cancer. ENMD-2076 has completed Phase I studies in patients with advanced solid tumors, multiple myeloma and leukemia and is completing data for a multi-center Phase II study in patients with platinum resistant ovarian cancer. The Company�� other product candidates have includes MKC-1, ENMD-1198 and 2-methoxyestrdiol (2ME2, Panzem) for treatment of rheumatoid arthritis.

ENMD-2076 is a novel orally-active, Aurora A/angiogenic kinase inhibitor with potent activity against Aurora A and multiple tyrosine kinases linked to cancer and inflammatory diseases. ENMD-2076 is relatively selective for the Aurora A isoform in comparison to Aurora B. Aurora kinases are key regulators of the process of mitosis, or cell division, and are often over-expressed in human cancers. ENMD-2076 exerts its effects through multiple mechanisms of action, including anti-proliferative activity and the inhibition of angiogenesis. ENMD-2076 has demonstrated significant, dose-dependent preclinical activity as a single agent, including tumor regression, in multiple xenograft models (such as breast, colon, leukemia), as well as activity towards ex vivo-treated human leukemia patient cells.

Validus Estimates Cat Loss from Flood - Analyst Blog

Top Bank Companies To Invest In 2014

Bermuda-based insurer, Validus Holdings Ltd (VR) expects to record a catastrophe loss of $69.6 million in the second quarter, resulting from heavy flooding in Central Europe.

This loss is net of reinsurance, effects of reinstatement premiums, retrocessional and other recoveries. Validus estimates the industry loss from this event to be in the range of $4–$5 billion.

The entire estimated loss from severe rainfall in Central Europe during May and June 2013 is expected to be split among the three operating segments of Validus– Validus Re, Talbot and AlphaCat. Validus Re will bear majority of the loss that is $63.1 million or approximately 90.7% of the loss. Talbot will bear $6.4 million or approximately 9.2% of the estimated loss. The remaining $0.1 million or 0.1% of the loss will be borne by AlphaCat.

However, owing to the uncertainties and limitations involved in the event information, actual losses might vary from the estimate. Such estimate revision will be recorded by the company in the period of its occurrence.

Validus' first-quarter operating earnings increased 108% year over year to $1.83 per share and outpaced the Zacks Consensus Estimate of $1.39 per share owing to improved performances in all its three operating units.

Additionally, Validus delivered positive earnings surprise in each of the last 4 quarters with an impressive average beat of 32.7%. The improved performances during the first quarter came on the back of lower catastrophe activities. As a result, overall combined ratio in the first quarter improved 2410 basis points to 60.5%.

However, the picture is expected to alter in the upcoming period owing to huge losses from the European floods. The Zacks Consensus Estimate for the second quarter of 2013 stands at $1.38 per share representing a year-over-year decline of 16.4%.

However, if no signifi! cant catastrophe events are reported during the rest of the year, this estimated loss might be mitigated and the company would come up with better numbers. The Zacks Consensus Estimate for full year 2013 is currently pegged at $5.40 per share, representing a year-over-year improvement of 65.8%.

Validus currently carries a Zacks Rank #3 (Hold). Among others in the industry, Brown & Brown Inc. (BRO), Marsh & McLennan Inc. (MMC) and eHealth Inc. (EHTH) carry a favorable Zacks Rank #2 (Buy) and appear impressive.

Shanghai ICRD Adopts Agilent Software - Analyst Blog

Agilent Inc. (A) announced that its Model Builder Program (MBP) and Model Quality Assurance (MQA) software have been selected by Shanghai Integrated Circuit Research and Development Center (ICRD) for model extraction and verification at 45-nm process nodes.

Shanghai IC R&D center is a non-profit institute supported by the state and local government of Shanghai to enhance technologies used by the Chinese IC industry.

Agilent's MBP is a comprehensive software solution used by semiconductor foundries and design houses to extract and customize SPICE model libraries. The solution includes powerful, built-in characterization, modeling capabilities as well as an open interface for modeling strategy customization.

The complexity of device modeling has increased considerably over time due to the demand for increased functionality, smaller device sizes and lower power consumption. Therefore, engineers have been using software tools to automate design and analysis right from the modeling stage to the final system verification stage.

Agilent's MBP and MQA software have the required capabilities to provide the highest-quality models. The software provides the requisite measurement, extraction and verification for the modeling of advanced circuit designs. The solution ensures a fully integrated data flow across Agilent's device-modeling platform and establishes standard operating procedures for modeling in team environments.

These will help Shanghai ICRD improve the various aspects of device modeling work (i.e. measurement, extraction and verification) much more efficiently.

Agilent's revenues in the second quarter of 2013 were $1.73 billion, up 3.1% sequentially and flat year over year, just short of the Zacks Consensus Estimate of $1.74 billion. Its Electronic Measurement segment remained the largest contributor and accounted for 44% of its revenues, up 5.3% sequentially but down 13.2% year over year.

Currently, Agilent Technologies has a Zacks Rank! #4 (Sell). Semiconductor stocks that have been performing well and are worth considering include Aspen Tech Inc (AZPN), Rambus Inc. (RMBS) and STMicroelectronics NV (STM), all carrying a Zacks Rank #1 (Strong Buy).

Ennore Port to raise Rs 500 cr via tax free bonds

Company also has an option to retain oversubscription upto Rs 500 crore , aggregating to Rs 1,000 crore.

Coupon rate for retail investors and HUFs (which are applying for an amount aggregating up to and including Rs 10 lakh across all series of bonds in the issue) is fixed at 7.51 percent in case of series 1 and 7.67 percent in case of series 2. For other investors, the coupon rate fixed at 7.01 percent and 7.17 percent in case of series 1 and 2, respectively.

Bids can be made for minimum 5 bonds across both series of bonds and in multiples of 1 bond thereafter. Interest payment will be received by investors on annual basis.

Redemption of bonds will take place after 10 years and 15 years from the deemed date of allotment in case of series 1 and 2, respectively.

Bonds are proposed to be listed on the Bombay Stock Exchange. The issue will close on March 15, 2013.

IDFC Capital Limited, A K Capital Services Limited and SBI Capital Markets Limited are lead managers to the issue.

Top Business And Finance Degrees For 2013

Business has long been one of the most declared majors among college students. It's a degree that is general and flexible enough to allow for a variety of career paths. However, certain business specialties are more popular than others due to high demand in the work force and the promise of a lucrative salary. Here are the degree concentrations that incoming business students will be focusing on in the 2013-14 school year:

Entrepreneurship
Business majors who want to get to the top of the corporate ladder or build their own empires will find a degree in entrepreneurship appealing. With coursework that includes capital management, global business and product development, it is no surprise that many entrepreneurship grads go on to become chief executive officers.

Natural leaders, out-of-the-box thinkers, and those who are always looking for better ways to do things are drawn to this degree. Those who hold degrees in entrepreneurship are among the highest paid in the business world with an average median annual salary of $158,560.

Business Administration
Employers look for well-rounded job candidates, and graduates who hold a degree in business administration fit the bill. This business concentration allows students to study everything from business ethics and law to economics, operations management and business strategies.

Business administration graduates generally go on to hold the top positions in companies due to their ability to maximize profits and increase efficiency. Business administration professionals find careers in diverse industries with average salaries ranging from $62,900 to $137,020.

Finance/Accounting
Dollars and cents are the fuel that make every business run, and finance majors are equipped to make sense of the numbers. This in-demand major can lead to careers as financial consultants and advisors, and budget analysts. Students should expect a heavy course load that features classes in both general business topics and personal and corporate money management.

Graduates with a concentration in international finance are even more desirable. A global perspective is invaluable to companies that need help navigating the regulations, laws and tax codes that come with international trade. Job growth for accountants is expected to be up 16% by 2020, according to the U.S. Department of Labor's Bureau of Labor Statistics. Starting salaries average $57,400, and more experienced finance and accounting degree holders make an average of $99,300 annually.

Economics
Economic majors go on to be integral members of any business team, as their knowledge of government and international relations proves to be invaluable to employers. Studies in micro and macro economics, and topics like public policy, industrial organization, business regulations and antitrust round out an economic major's academic syllabus.

Economists are trained to predict the economic impacts of a corporation's decisions, which can ultimately save a company from fiscal disaster. They are compensated for their skills with an average salary of $83,590.

Marketing
Even the best business idea will fall flat without the right promotion; this is where marketing professionals come in. Marketing majors take classes in finance, public relations and statistics in order to get a grasp on how to develop advertising plans, maximize investments and guide a client's brand. They are well paid for their expertise with marketing managers making an average salary of $112,800.

Choosing marketing as a business school major can lead to diverse opportunities for employment as marketers are needed in nearly every type of business. Social media marketing, managing a company or brand's online presence, is a growing field that is ripe for recent and upcoming graduates.

The Bottom Line
Business majors are plentiful on college campuses, but savvy students who specialize in today's most in-demand concentrations will set themselves up for better job offers after graduation.

The Only Dow Stock Defying Today's Plunge

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is down following sell-offs around the world and some worse-than-expected U.S. economic reports. As of 1:25 p.m. EDT the Dow is down 161 points, or 1.06%, to 15,017. The S&P 500 (SNPINDEX: ^GSPC  ) is down 1.03% to 1,615.

There were four U.S. economic releases today.

Report

Period

Result

Previous

ADP private-sector employment	May	135,000	113,000
Productivity	Q1	0.5%	0.7%
ISM services	May	53.7%	53.1%
Factory orders	April	1%	(4.7%)

Besides the productivity report, the rest of today's economic releases came in below economist expectations, pulling Dow stocks down. The key report here is ADP's private-sector employment report. Analysts had expected the payroll provider to report that the private sector had created 170,000 jobs in May. The actual gain was far smaller at just 135,000 new private-sector jobs.

ADP Change in Nonfarm Payrolls data by YCharts.

The government reports its official jobs report on Friday which analysts expect will show a gain of 175,000 jobs, slightly higher than April's 165,000 new jobs. As 70% of the U.S. economy is based on consumer spending jobs are an important barometer to watch for the health or weakness of the economy.

The only Dow stock up today
Today's Dow leader is Cisco (NASDAQ: CSCO  ) , up 0.7% to $24.52. Cisco is gaining alongside competitor Juniper Networks (NYSE: JNPR  ) after Juniper's CEO said he sees a trend of rising spending in the sector. Cisco was the third-biggest Dow gainer last week and the second-biggest Dow gainer in May. The stock has been on a tear since beating earnings estimates last month, rising nearly 16% since it reported on May 16. Since then Cisco has announced a small bolt-on acquisition.

Cisco has followed in the footsteps of Intel by becoming a dividend powerhouse, having first initiated a dividend in 2011. The company has raised the dividend more than 200%. On Monday Cisco announced that it would pay its quarterly dividend of $0.17 on July 24 to shareholders on record as of July 3 for a current forward yield of 2.8%.

Once a highflying tech darling, Cisco is now on the radar of value-oriented dividend lovers. Get the lowdown on the routing juggernaut in The Motley Fool's premium report. Click here now to get started.

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Investing In Fine Wine

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Your significant other orders a certain cabernet for $40 that he feels will be worth $400 in the future, and wants to start collecting it and other vintages. But should you invest in a product that disappears with a broken bottle, or can be emptied into glasses at a party on a whim? How do you really know what a bottle is worth and what it will be worth in the future? Plus, what expenses and space requirements are involved in storing wine? Read on to learn more about investing in wine.

For Love or Money
When you decide to invest in wine collecting, the first decision you have to make is whether you are investing for the love of certain wines, to make money, or a combination of both.

If you are going to invest purely because you are a connoisseur of fine wines, you can pick wines you enjoy in the hope that they will increase in value. Then, if you happen to drink a few bottles along the way, it's OK, because the endeavor is a hobby, like collecting baseball cards or stamps.

Defeating Breakage and Spoilage with Storage
When you are storing wine that you'll drink within a few weeks, you can keep it in a wine rack for display in your home. However, keeping your wine in optimal salable and flavor condition for long time periods requires more careful storage. After all, according to Wine Spectator writer Bruce Sanderson in "The ABCs Of Storage", wine will produce small, flaky crystals if exposed to excessive cold temperatures, although this is less likely to happen in wines that are cold-stabilized. A room that is too hot could cause rapid increases in the time a wine takes to mature and reach optimum flavor and salability.

If your wine matures too fast, you'll have to sell it faster, reducing the likelihood of making big profits in the future.

To properly store wine, you have to have a dark area with optimal temperature and humidity leve! ls. This can be accomplished in a natural cellar in your basement or a dark closet if you live in a moderate climate. To decide whether your area of the country is suitable to store wine, talk with wine cellar managers in your area. Otherwise, if you don't have optimal conditions available, you will need a wine cooler, which for a large collection could run into the thousands of dollars. You'll also need substantial space.

In addition to space and equipment, you will have to include the electricity costs of running your wine coolers in your budget. The best way to calculate estimated costs of electricity use is to check energy ratings of the wine coolers you are considering buying, and then relay this information to your electric company to see what electricity costs would average per month.

If you don't have the space to store your wine collection, you will want to contact local wine storage facilities for pricing and information concerning storage capabilities, and the amount of insurance included with storage pricing.

Wine Insurance
Expensive wines are considered valuable items similar to jewelry. You will need to discuss with your home insurance company how to cover your collection to its full value, which will most likely include adding coverage for valuables. You will want to compare prices for wine insurance from other carriers as well. Remember to consider the deductible amount, the coverage amount in relation to the value of your collection, and the cost of the insurance policy.

If you live in a climate prone to natural disasters such as earthquakes, floods or tornadoes, make sure your insurance policy covers breakage or contamination due to these weather emergencies.

Collecting by Budgeting
Once you've added up storage and insurance costs, you should configure an overall budget for how much you'd like to spend on wine investments. Use the following factors to calculate a total budget: Costs of insurance and upkeep of storage facility; and How much money you are willing to risk on wine bottles after deducting wine insurance and storage costs plus other safer investments from your total investment budget. The Impact of State Regulations
If you live in a state that doesn't allow purchasing wine over the internet, directly through a winery or through a retailer that isn't required to purchase wine through a wholesaler, you are limited in the selections of wines you can purchase for your collection based on what your region's wholesalers choose to carry. Before you decide to start a collection, call your state government to find out if you will be faced with these restrictions in wine availability.

How to Research Current and Future Wine Values
The best indicators of a wine's current and future values are ratings and scarcity. Wine critics rate wines on a scale of 1 to 100. Before you purchase wine based on ratings, read reviews and ratings from several critics. Wines that rate around 95 are considered high quality.

Scarcity is harder to predict. A wine that is currently in limited production is a good indicator, but which wines will be scarce later on is harder to figure out. Research wineries you are interested in for past performance of prices. You can keep track of wine prices for more than 10,000 different wines at Vinfolio.com.

Commission
If you graduate to selling a valuable wine in the future, most of this is done through auction houses. The commission charged varies quite a bit between an online auction house, such as winebid.com or winecommune.com, and Sotheby's or Christie's. However, before you decide to go with a cheaper online alternative, make sure the sale prices of the wines you wish to sell are similar. If you have a wine that is currently going for $10,000 a case at Sotheby's and $5,000 at an online auction, the difference in commission costs is worthwhile. You can find out bid prices for online auction houses on their websites, but brick-and-mortar auction houses will require a phone call to acquire more details.

Wine Funds
If you don't have the storage or the willpower to keep from drinking your investment vehicle, invest in wine stocks and mutual! funds. There are dozens of options from which to choose. You can drink your favorite vintage and invest your money without the work involved in housing your own collection.

Bottom Line
Investing in wine can be a risky proposition, but if you weigh all the associated costs and are prepared to drink what you don't sell, it can be a fun and savvy investment vehicle. Plus, if you fail to pick a winner, you can always toast your loss.

What Kind of Hotel Will $10 a Night Buy You in New York?

Sun Bright Hotel Given that New York is the priciest city in America, it's not surprising that a night in the Big Apple will leave you digging deep. But if you don't want to pay the $281 that an average hotel room will cost you for a night, there's another option: In Chinatown's Sun Bright Hotel, you can have a room for just $10 per night. This photo of Sun Bright Hotel is courtesy of TripAdvisor Admittedly, $10 doesn't buy a lot. For a sawbuck, you get a tiny, 35-square-foot space, bounded by chicken wire. As the New York Post recently reported, that's less than half the size of a solitary confinement cell in a New York prison. For that matter, the noise, smells, and potential for violence also make it a troublesome choice for tourists. Then again, New York is the city that never sleeps.... Sun Bright Hotel New York A photo of the ceiling of a cubicle, approximately 90 inches by 58 inches, separated above the door frame by chicken wire. Even outside the rooms, the accommodations at the Sun Bright leave a lot to be desired. The hotel is six stories tall, but doesn't have a working elevator, which means that getting to your room may be a bit of a struggle. Then again, since it also doesn't have a gym, the six flights may be a good option for anybody hoping to get a workout. Also, the bathrooms are shared, which means that the 100 men renting space in the semi-private cells share a bathroom with two shower stalls and four toilets. Sun Bright Hotel The Sun Bright is one of a few super-cheap hotels still in business in New York. For travelers interested in a little living history, the Bowery's White House hotel is the last of that area's once-multitudinous flophouses. And, with prices ranging from $30 to $73 per night per room, it remains a cheap deal. Then again, given the hotel's problems with mold and roaches, it's hard to classify it as a bargain. On second thought, maybe it's smarter to just go couch surfing with Airbnb! This photo of Sun Bright Hotel is courtesy of TripAdvisor

Americans Still Hate Debt

Last year, the smart folks at McKinsey & Co. predicted U.S. households would be done shedding debt, or "deleveraging," by the middle of this year.

There's still time for them to be proven right -- and I think they are right -- but deleveraging continues at a good clip. Household debt fell by $110 billion in the first quarter, to a total of $11.23 trillion, according to the Federal Reserve. That's the lowest level in five years.

Broken out by the type of debt, here's where we're at:

The decline is due almost entirely to falling mortgage balances. Of the $110 decline in overall debt, $101 billion came from a decline in mortgages. Credit card balances fell by $19 billion, home equity lines of credit fell $11 billion, and student loans increased $20 billion. On net, we're shedding debt. Congratulations!

And since most Americans earn more today than they did five years ago (not adjusted for inflation), the debt-to-income ratio has really plunged. It's now at the lowest level in more than a decade, and down by almost a third since 2008:

Source: Federal Reserve.

Incomes and employment are still abysmal. But from a debt standpoint, American households are in a more stable position than they've been in in years.

A few other charts from the Fed's debt study caught my attention. Take this one:

Not only is the amount of debt in decline, but the number of accounts, particularly for credit cards, has plunged. Some of this is the cancelation of inactive cards. But there's also a trend away from credit toward debit cards. The number of Visa (NYSE: V  ) credit cards in circulation declined slightly between 2009 and 2011, while the number of Visa debit cards increased 18% during that time.

Meanwhile, credit card delinquencies have dropped to the lowest level since 2008. For those in the credit card industry -- dominated by Bank of America  (NYSE: BAC  )  and JPMorgan Chase  (NYSE: JPM  )  -- this is a leap in the right direction. The low-quality credits are being purged, the business is leaning out, and defaults are coming way down.

And check this out:

The number of new debt inquires dropped after 2008 and has stayed low ever since. So, not only are Americans distancing themselves from old debt, but they appear to have little desire to go down that road again.

Someday this will change. The deleveraging will end, and consumers -- stronger, more stable consumers -- will borrow again. But for now, Americans still hate debt.

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Profits Decline at Standard Chartered

LONDON -- The shares of Standard Chartered  (LSE: STAN  )   (NASDAQOTH: SCBFF  ) slumped 5% to 1,616 pence during early London trade this morning after the bank revealed lower first-quarter operating profits.

Standard Chartered, which earns 84% of its profits in Asia, delivered a slight improvement in first-quarter revenue. However, increased charges for bad loans and higher staffing costs caused the bank's margins to suffer.

The company said it enjoyed a "very strong start" to 2013 driven by growing client volumes, but reported slower momentum as the quarter progressed.

Standard Chartered revealed "double digit" revenue growth in its Hong Kong and African divisions, but claimed this was offset by weaker performance in Korea and Singapore.

Standard Chartered chief executive Peter Sands commented:

Standard Chartered has continued to deliver a resilient performance despite the impact of extraordinary monetary policies in the West and Japan on liquidity conditions across Asia and thus on margins.

We remain focused on continuing to grow the business, building on our long-standing relationships with our clients and customers, on maintaining our strong balance sheet, and on keeping a firm grip on costs and risks. We are in the right markets and remain confident in the outlook for our business.

With a market cap of 39 billion pounds, Standard Chartered's shares trade at 11 times expected earnings, and offer a prospective dividend yield of 3.8%.

Of course, whether that valuation, today's results and the future prospects for the banking industry all combine to make shares of Standard Chartered a buy remains your decision.

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CAPScall of the Week: RealPage

For years, satirical late-night TV host Stephen Colbert has been running a series on his show called "Better Know a District," which highlights one of the 435 U.S. congressional districts and its representative. While I am no Stephen Colbert, I am brutally inquisitive when it comes to the 5,000-plus listed companies on the U.S. stock exchanges.

That's why I've made it a weekly tradition to examine one seldom-followed company within the Motley Fool CAPS database, and make a CAPScall of outperform or underperform on that company.

For this week's round of "Better Know a Stock," I'm going to take a closer look at RealPage (NASDAQ: RP  ) .

What RealPage does
RealPage is a software-as-a-service applications provider to apartment communities and single-family housing developments. The company has a portfolio of cloud-based software products that allow apartment communities to automate leasing, renting, management, and accounting activities. It also provides software capable of helping apartments originate and find new leads, as well as optimize rent yields.

In its fourth-quarter report, RealPage saw its revenue jump 20% to $85.7 million while net income rose 43% to $10.2 million over the year-ago period. Looking toward full-year 2013, RealPage anticipates revenue growth of 20% to a mid-point forecast of $386 million, with EPS forecast to be between $0.57 and $0.60.

Whom it competes against
RealPage doesn't have any comparably sized publicly traded competition. The greatest point of concern for any RealPage shareholder has to do with the overall health of the housing market, the trends in rent prices, and the underlying drive of residential real estate investment trusts to drive growth.

In recent months, rental growth trends have slowed as housing prices began to once again creep higher and lending standards relaxed just enough to allow previously locked-out potential buyers the ability to buy a home. According to MPF Research, effective rent growth for new leases grew 2.6% in the first quarter, which is still strong, but down from the 4.8% growth we saw in the fourth quarter of 2011. On the flip-side, apartment vacancy rates are at their lowest levels (4.3%) since 2001. 

To get a better idea of how RealPage is doing, it's always best to look at occupancy rates for some of the nation's biggest residential-REITs. In AvalonBay Communities' (NYSE: AVB  ) most recent quarter, the company reported a 5% increase in revenue attributable to a 4.7% boost in prices in established communities, and a 0.3% uptick in occupancy. For Equity Residential (NYSE: EQR  ) it was much of the same, with revenue rising 5.4% in the fourth-quarter as occupancy rates rose 40 basis points to 95.4% from the year-ago period. Finally, Essex Property Trust (NYSE: ESS  ) delivered some of the strongest occupancy results of all, with 96.9% of its units occupied as of the end of January. The point is that with occupancy rates at their lowest levels in more than a decade, these residential REITs are driving growth by boosting prices because of rent scarcity.

The call
After carefully reviewing the prospects for RealPage, I've decided to make a CAPScall of outperform on the company.

Although RealPage's valuation leaves a lot to be desired for a deep-discount value seeker like myself -- it's valued at 34 times the mid-point of this year's EPS estimates -- its cloud-based applications are sitting in the sweet spot of an industry with incredible pricing power.

Looking at the first from a housing inventory perspective, the home buying process may be getting moderately easier as lenders ease their qualifications for a loan. However, inventory levels themselves are at multi-year lows, which is boosting home prices and pushing prospective homebuyers out of the market. This is only going to further push existing renters into "wait-and-see" mode.

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From a residential-REIT's point of view, they'd be foolish not to utilize RealPage's rent optimization and automation tools to boost their margins. All three REITs noted above should maintain the ability to boost rental rates so long as vacancy rates remain near their lows, which provides more than ample reason for RealPage's cloud-based software to remain in high demand. 

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