Hot Income Stocks For 2014

LONDON -- To me, capital growth and dividend income are equally important. Together, they provide the total return from any share investment and, as you might expect, my aim is to invest in companies that can beat the total return delivered by the wider market.

To put that aim into perspective, the FTSE 100 has provided investors with a total return of around 3% per year since January 2008.

Quality and value
If my investments are to outperform, I need to back companies that score well on several quality indicators and buy at prices that offer decent value.

So this series aims to identify appealing FTSE 100 investment opportunities and today I'm looking at�Capita� (LSE: CPI  ) , an outsourcing specialist working for public and private sector organizations.

With the shares at 957 pence, Capita's market cap. is 6,291 million pounds.

This table summarizes the firm's recent financial record:

Year to December

Top 5 Machinery Stocks To Own For 2015: Sonova Holding AG (SOON)

Sonova Holding AG is a Switzerland-based company operating in the healthcare sector. The Company, along with its subsidiaries, specializes in the design, development, manufacture, worldwide distribution and service of technologically advanced hearing systems for adults and children with hearing impairment. The Company is active in two operating segments: the Hearing instruments segment includes the companies that are active in the design, development, manufacture, distribution and service of hearing instruments and related products, and the Cochlear implants segment includes the companies that are active in the design, development, manufacture, distribution and service of hearing implants and related products. The Company operates worldwide and distributes its products in over 90 countries through its own distribution network and through independent distributors. Sonova Holding AG is the holding company of the Sonova Group. Advisors' Opinion:

• [By Sofia Horta e Costa]

  ThyssenKrupp AG slid to a 10-week low after raising 882.3 million euros ($1.2 billion) through a share sale. Antofagasta Plc led a measure of mining companies to a seven-week low. Sonova Holding AG (SOON) declined 1.5 percent as Morgan Stanley cut its rating on the Swiss hearing-aid maker. Orange SA slipped 3.4 percent amid concern a price war in the French mobile market will extend to fourth-generation data services.

• [By Corinne Gretler]

  Sonova (SOON) advanced 6.9 percent to 126.50 Swiss francs after predicting that annual earnings before interest, taxes and amortization would grow as much as 14 percent, compared with a previous forecast of 9 percent to 13 percent. Sales will increase 8 percent to 10 percent, up from an earlier projection of 6 percent to 8 percent.

Hot Income Stocks For 2014: Micromem Technologies Inc (MMTIF)

Micromem Technologies Inc. (Micromem), incorporated on October 21, 1985, is a development-stage company. The Company is engaged in the development of memory technology that has the characteristics of non-volatility, which is the ability to retain information after power has been shut off. The Company is focused on magnetic sensor applications. The Company is focused on research and development of nano-magnetic random access memory (MRAM). Micromem operates in a single segment as a developer of non-volatile magnetic memory and sensor technology. The Company partners with industry to manufacture.

The Company�� technology is based on the ability to use magnetic materials in combination with a sensor to record the state of magnetization. Each magnetic element stores one bit of data based on its ability to alternate between states of magnetic polarization, which states are determined by a sensor.

The Company competes with IBM.

Advisors' Opinion:

• [By Peter Graham]

  At the end of last week, small cap stocks Senesco Technologies, Inc (OTCBB: SNTI), VolitionRX Ltd (OTCMKTS: VNRX) and Micromem Technologies Inc (OTCBB: MMTIF) were all trending upwards ��ending up 13.65%, 8.73% and 7.61%, respectively, on Friday. However, it�� a new trading week with the last two trading days for the year. So what direction will these three small caps head in for the end of this year and into next year? Here is a quick look to help you decide on a trading or investment strategy:

Hot Income Stocks For 2014: Fenner PLC (FENR)

Fenner PLC is a manufacturer and distributor of reinforced polymer products. It operates in two segments: engineered conveyor solutions, which is engaged in the manufacture of rubber, polyvinyl chloride and steel cord conveyor belts, ply, solid woven and steel cord conveyor belting for mining, power generation and industrial applications and advanced engineered products, which is engaged in the manufacture of precision polymer products; problem-solving power transmission and motion transfer components; silicone and complex hoses for heavy duty trucks, buses and off-road vehicles; seals and sealing solutions for the fluid power and oil and gas industries; technical textiles for medical and industrial applications and silicone based products for medical applications; rollers for digital image processing and medical diagnostics, and fluropolymer components for fluid and gas handling. Advisors' Opinion:

• [By Inyoung Hwang]

  Fenner Plc (FENR) rallied 5.2 percent to 407.4 pence, its highest price since March 20. UBS AG started coverage of the conveyor-belt maker with a buy rating, saying shares are cheap. The bank predicted the stock will climb to 460 pence in the next 12 months.

Hot Income Stocks For 2014: BMC Software Inc. (BMC)

BMC Software, Inc. develops software that provides system and service management solutions for enterprises in the United States and internationally. The company operates in two segments, Enterprise Service Management and Mainframe Service Management. The Enterprise Service Management segment offers service assurance solutions that manage availability and performance management, event management, service impact management, and capacity management; service automation solutions managing provisioning, configuration change, and compliance automation for servers, networks, applications, and databases; service support solutions, which manages service desk, incident management, service request management, problem management, asset management, service level management, change and release management, and identity management; and BMC Atrium that provides shared technologies that unify information and processes from disparate management tools, and assigns priorities to business servic es. It also offers consulting, implementation, integration, IT process design and re-engineering, and educational services related to its software products. The Mainframe Service Management segment provides mainframe data and performance management solutions that ensure the availability and reliability of the business critical data, applications, and systems; and enterprise workload automation solutions comprising CONTROL-M product line, a set of features enabling data centers to automate their complex workloads and critical business processes. The company serves manufacturers, telecommunication companies, educational institutions, retailers, distributors, hospitals, and other industries, as well as channel partners, including resellers, distributors and systems integrators directly. BMC Software, Inc. was founded in 1980 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By Tom Taulli]

  As with many other hot cloud companies, NOW stock has been a roller coaster lately. But this isn’t an issue for the company�� CEO, Frank Slootman. I met with Slootman recently, and he told me that ServiceNow could be instantly profitable if he dialed down growth. He said that would be a mistake, though, because the market opportunity is massive. His competition is mostly made up of legacy operators like BMC (BMC) and Hewlett-Packard (HPQ).

• [By Dan Caplinger]

  But one big element pushing Splunk's stock higher was the buyout offer that rival BMC Software (NASDAQ: BMC  ) received earlier this month. A group of private investors that includes Bain Capital made the $6.9 billion offer for BMC, and with activist investor Elliott Management having blessed the deal, it's likely to go through. The strategic move establishes the value of companies in the data-analytics space, especially given that BMC had already lost its competitive edge against Splunk and other rivals.

Hot Income Stocks For 2014: KDDI Corp (KDDIF)

KDDI CORPORATION is a telecommunications company. The Mobile Telecommunication segment is engaged in the provision of mobile communications services, including voice and data services, and mobile WIMAX services, as well as the sale of mobile communication terminals and the provision of contents. The Fixed-line Telecommunication segment provides broadband services, including fiber to the home (FTTH) and cable television (TV) services, as well as domestic and overseas communication services, data center services and information and communication technology (ICT) solution services. The Others segment is involved in the operation of call centers and the development of research and advanced technology. On December 2, 2013, it transferred all shares of a wholly owned subsidiary, JAPAN CABLE NET LIMITED to another subsidiary. In December 2013, the Company acquired the entire share capital in Yugen Kaisha Cosmos. Advisors' Opinion:

• [By MARKETWATCH]

  LOS ANGELES (MarketWatch) -- Japanese stocks opened sharply higher Monday, with the Nikkei Stock Average (JP:NIK) advancing 1.1% to 14,242.86 after falling 2.8% Friday, as end-of-the-week gains for U.S. shares and some earnings news helped lift the market. The Topix also saw solid gains, up 0.8% in early moves. Major advances included a 2.5% rise for Hitachi Ltd. (JP:6501) (HTHIF) , a 4.1% surge for Mitsubishi Motors Corp. (JP:7211) (MMTOF) , and a 2.6% improvement for KDDI Corp. (JP:9433) (KDDIF) after the Nikkei business daily said the telecom will report a 50% increase for operating profit in the fiscal first half compared to a year earlier. Sony Corp. (JP:6758) (SNE) added 2% after scoring a Credit Suisse upgrade to outperform. Shares of NTT DoCoMo Inc. (JP:9437) (NTDMF) traded 1.1% higher after posting above-forecast quarterly results Friday, while JFE Holdings Inc. (JP:5411) (JFEEF) fell 3.2% after the steel producer also reported earnings.

• [By Daniel Inman]

  In Tokyo, KDDI (JP:9433) � (KDDIF) �gained 0.6% after the telecommunications company reported a record-high and consensus-beating operating profit for the first half of the fiscal year, due to a stronger-than-expected increase in subscription and a rise in usage revenue.

• [By Daniel Inman]

  In Tokyo, telecoms firm KDDI Corp. (JP:9433) � (KDDIF) �rose 2% after a Nikkei report said that the firm will likely report a record first-half group operating profit, with a 50% on-year increase. TDK Corp. (JP:6762) � (TTDKF) , however, dropped 0.2% after a separate Nikkei report said that the electronics-component producer will report an 8% increase in operating profit over the same period.

Hot Income Stocks For 2014: Durata Therapeutics Inc (DRTX)

Durata Therapeutics, Inc., incorporated on November 4, 2009, is a pharmaceutical company focused on the development and commercialization of therapeutics for patients with infectious diseases and acute illnesses. The Company enroll and dose patients in two global Phase III clinical trials with its product candidate, dalbavancin, for the treatment of patients with acute bacterial skin and skin structure infections (abSSSI). Dalbavancin is an intravenous antibiotic product candidate designed for once-weekly dosing. In addition to abSSSI, the Company focuses on the development of dalbavancin for additional indications, including osteomyelitis, diabetic foot infection and pneumonia.

As of December 31, 2011, Dalbavancin had already completed three Phase III clinical trials, in which more than 1,000 patients in total received dalbavancin. Dalbavancin achieved its primary efficacy endpoint of non-inferiority in each of these three completed Phase III clinical trials when compared to linezolid, cefazolin or vancomycin, three of the standard-of-care agents for uncomplicated skin and skin structure infections (uSSSI), and complicated skin and skin structure infections (cSSSI). Its two ongoing Phase III clinical trials are designed to compare dalbavancin to vancomycin, with an option to switch to oral linezolid, under the new FDA draft guidance.

The Company competes with Pfizer, Cubist Pharmaceuticals, Inc., Theravance, Inc., Forest Laboratories, Inc., Sanofi-Aventis Ltd., The Medicines Company, Trius Therapeutics, Inc., Cempra, Inc., Rib-X Pharmaceuticals, Inc., Paratek Pharmaceuticals, Inc., Nabriva Therapeutics AG, Tetraphase Pharmaceuticals, Inc. and Furiex Pharmaceuticals, Inc.

Advisors' Opinion:

• [By Bob's Stocks]

  Durata Therapeutics (DRTX) is developing Dalbavancin, a once a week, intravenous antibiotic product candidate, for the treatment of patients with acute bacterial skin and skin structure infections, or ABSSSI. The company is expected to file a NDA (New Drug Application) at any moment and MAA (Marketing Authorization Application) at the end of 2013.

• [By Lisa Levin]

  Durata Therapeutics (NASDAQ: DRTX) shares climbed 5.30% to $14.18. The volume of Durata Therapeutics shares traded was 861% higher than normal. The FDA Advisory Committee unanimously recommended the approval of Durata's Dalvance.

Hot Income Stocks For 2014: Southwest Airlines Co (LUV)

Southwest Airlines Co., incorporated on March 9, 1967, operates Southwest Airlines, a passenger airline, which provides scheduled air transportation in the United States. As of December 31, 2011, the Company was serving 72 cities in 37 states throughout the United States. During the year ended December 31, 2011, the Company added addition services in two new states and three new cities: Charleston, South Carolina; Greenville-Spartanburg, South Carolina; and Newark, New Jersey. Southwest provides point-to-point. On May 2, 2011, the Company acquired AirTran Holdings, Inc. (AirTran).

AirTran�� route system provides hub-and-spoke, rather than point-to-point, service, with approximately half of AirTran�� flights originating or terminating at its hub in Atlanta, Georgia. AirTran also serves a range of markets with non-stop service from bases of operation in Baltimore, Maryland; Milwaukee, Wisconsin; and Orlando, Florida. As of December 31, 2011, AirTran was serving 68 United States and near-international destinations, including San Juan, Puerto Rico; Cancun, Mexico; Montego Bay, Jamaica; Nassau, The Bahamas; Oranjestad, Aruba; Punta Cana, Dominican Republic, and Bermuda. As of January 31, 2012, AirTran served 65 destinations. During 2011, approximately 71% of Southwest�� customers flew non-stop, and Southwest�� average aircraft trip stage length was 664 miles with an average duration of approximately 1.8 hours.

As of December 31, 2011, Southwest offered 25 weekday roundtrips from Dallas Love Field to Houston Hobby, 13 weekday roundtrips from Phoenix to Las Vegas, 13 weekday roundtrips from Burbank to Oakland, and 12 weekday roundtrips from Los Angeles International to Oakland. Southwest offers connecting service opportunities from over 60 Southwest cities to different Volaris airports in Mexico including Aguascalientes, Guadalajara, Mexico City (MEX), Mexico City-Toluca (TLC), Morelia, and Zacatecas. The Company�� International Connect portal conducts two separate transac! tions: one with Southwest�� reservation system and one with Volaris�� reservation system.

Southwest bundles fares into three categories: Wanna Get Away, Anytime, and Business Select. Wanna Get Away fares are lowest fares. Business Select fares are refundable and changeable, and funds may be applied toward future travel on Southwest. Business Select fares also include additional perks, such as priority boarding, a frequent flyer point multiplier, priority security and ticket counter access in select airports, and one complimentary adult beverage coupon for the day of travel. The Company�� Internet Website, southwest.com, is the avenue for Southwest Customers to purchase tickets online. During 2011, southwest.com accounted for approximately 78% of all Southwest bookings. During 2011, approximately 84% of Southwest�� Passenger revenues came through its Website, including revenues from SWABIZ, the Company�� business travel reservation Web page.

Advisors' Opinion:

• [By Ben Levisohn]

  Even though Old Guards[ Southwest Airlines (LUV)] and [JetBlue Airways (JBLU)] have shown momentum in recent RASM trends, SAVE’s RASM strength underscores that there are few scenarios where the New Guard will not perform at least as well as the Old Guard ��and many scenarios where they will outperform, consistent with our view. In fact, the New Guard continue to benefit from the following vis-�-vis other low-cost carriers: (A) Structural cost advantages, (B) Innovative ancillary revenue strategies, (B) Profitable ASM growth in excess of peers due to their small size and ability to stimulate demand through price, and (C) Relatively attractive valuation considering the companies��growth profiles.

• [By Jesse Solomon]

  The selling was broad based. JetBlue (JBLU)and Southwest (LUV) were down even though neither company has a big presence overseas.

  Of the U.S. airlines, United Continental (UAL) probably has the most exposure to Africa through its Star Alliance, according to Joe DeNardi, an airlines stock analyst at Stifel Nicolaus, but United's shares weren't any worse off than their large rivals American (AAL) and Delta (DAL).