Top 5 Mid Cap Stocks For 2014

By Ironwood Investment Management

The Ironwood SMID Cap Value portfolio had a strong February. The strategy advanced 6% for the month. The strategy's materials and processing, producer durables, utility and energy stocks drove the strong performance.

Within those sectors some of the better performing stocks were Platform Specialty Products (PAH), Carrizo Oil & Gas (CRZO), Weatherford International (WFT), Xylem (XYL), Zynga (ZNGA) and Dynegy (DYN). The one thing all of these stocks have in common is that the management team is executing on the transition strategy that we outlined when we first purchased the stock.

We did not initiate any positions in February. Here are the positions eliminated in February.

Itron (ITRI): We owned Itron as of our January 1, 2013 inception date as we believed the new CEO Philip Mezey, hired in November 2012, would renew the company's focus on advancing its technology and rationalizing its cost structure after a series of mergers. This transition was needed as the company was facing a period of reduced levels of new orders.

10 Best Building Product Stocks To Buy For 2015: Tetra Tech Inc.(TTEK)

Tetra Tech Inc., together with its subsidiaries, provides consulting, engineering, program management, construction management, and technical services for water, natural resources, environment, infrastructure, and energy sectors. The company operates in four segments: Engineering and Consulting Services (ECS), Technical Support Services (TSS), Engineering and Architecture Services (EAS), Remediation and Construction Management (RCM). The ECS segment offers front-end science, consulting engineering, and project management services in the areas of surface water management, groundwater, waste management, mining and geotechnical sciences, arctic engineering, industrial processes, and information technology. The TSS segment provides management consulting and strategic direction in the areas of environmental assessments/hazardous waste management, climate change, international development/stabilization, energy services, and technical government staffing services. The EAS segment offers engineering and architecture design services, including leadership in energy and environmental design (LEED) and sustainability services, together with technical and program administration services for projects related to water infrastructure, buildings, and transportation and facilities. The RCM segment provides environmental remediation, infrastructure development, and alternative energy services. The company offers its services to the U.S. federal, state, and local government agencies, as well as to commercial and international clients. Tetra Tech, Inc. was founded in 1966 and is headquartered in Pasadena, California.

Advisors' Opinion:

• [By Rich Smith]

  The U.S. Department of Defense announced the award of 10 separate contracts Thursday, worth a bit over $340 million in aggregate value. Boeing and Raytheon claimed about one third of the money on offer, apiece. As for other companies participating in Pentagon funding, these included the following:

• [By Ben Levisohn]

  URS Corp, which competes with the likes of Fluor (FLR), Jacobs Engineering (JEC) and Tetra Tech (TTEK), said it would earn between $3.20 and $3.30 a share in 2013–the previous range had been between $4.10 and $4.25 a share–and also offered guidance for 2014 that was well below analyst forecasts. On the plus side, URS said it would buy its shares back at a faster pace than previously announced.

• [By Rich Smith]

  The Department of Defense awarded a dozen separate contracts Thursday, worth more than $225 million in aggregate. Notable winners (among publicly traded companies) included:

• [By Canadian Value]

  Position % of Fund Assets 1) First American Financial Corp. (FAF) 7.0% 2) Apple, Inc. (AAPL) 6.5% 3) Coinstar, Inc. (CSTR) 4.8% 4) EMC Corp. (EMC) 4.4% 5) Coach, Inc. (COH) 4.4% 6) Kohl's Corp. (KSS) 4.1% 7) Blucora, Inc. (BCOR) 4.0% 8) Tetra Tech, Inc. (TTEK) 3.1% 9) OM Group, Inc. (OMG) 3.0% 10) American International Group, Inc. (AIG) 2.8% TOTAL 44.1% One area that we believe still offers some value in the market is in high quality, large��ap technology stocks that may be momentarily out��f��avor as they transition from rapid growth to slower growth. In particular, we become interested when that transition is also accompanied by a change in capital allocation policies designed to return more cash to shareholders in the form of dividends and share repurchases. We believe that Apple and EMC are two of the absolute highest quality technology businesses in the world and both have recently announced very material, shareholder��friendly changes to how they will allocate capital.

Top 5 Mid Cap Stocks For 2014: Isramco Inc.(ISRL)

Isramco, Inc., together with its subsidiaries, engages in the acquisition, development, production, and exploration of onshore oil and natural gas properties in the United States. It owns various working interests in oil and gas wells in Louisiana, Texas, New Mexico, Oklahoma, Wyoming, Utah, and Colorado; and operates approximately 589 wells principally in Texas and New Mexico. The company sells its oil and natural gas products to independent marketers, oil and natural gas companies, and gas pipeline companies. As of December 31, 2010, its estimated total proved reserves were approximately 9,031 thousand barrels of oil equivalent, which included 3,318 thousand barrels of oil, and 23,701 million cubic feet of natural gas, and 1,763 thousand barrels of natural gas liquids. The company was founded in 1982 and is based in Houston, Texas.

Advisors' Opinion:

• [By Seth Jayson]

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

• [By Seth Jayson]

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

Top 5 Mid Cap Stocks For 2014: BM&F Bovespa SA Bolsa de Valores Mercadorias e Futuros (BVMF3)

BM&F Bovespa SA Bolsa de Valores Mercadorias e Futuros (BM&FBovespa) is a Brazil-based company primarily engaged in the operation of the Sao Paulo Stock Exchange. The Company�� business is divided into three segments: Bovespa, which manages the exchange markets and MBO national for securities trading equities, which include stocks, receipts of shares, depository receipts on shares of Brazilian companies or foreign, equity derivatives, warrants, shares of different types of closed investment funds, non-standard options to purchase and sell securities, among others; BM&F Segment covers the main steps of the cycles of trading and settlement of securities and contracts: trading systems in environments of electronic trading and trading via Internet and systems of registration, and other assets; Corporate and Institutional Products Segment refers to services as depository of securities, loans and securities and listing of securities, information signs and rating services, among others. Advisors' Opinion:

• [By Denyse Godoy]

  BM&FBovespa SA (BVMF3) will exclude from the gauge any companies whose shares trade for less than 1 real (44 cents), the exchange operator said in a statement yesterday. The limit on equity lending for OGX, which has plunged 91 percent this year to 38 centavos in Sao Paulo, was raised to 50 percent of shares available for trading from 45 percent, the bourse said in a separate statement. Stock loans, used in short sales, climbed to 44.9 percent on Sept. 11, data compiled by Bloomberg show.

• [By Ney Hayashi]

  Equity loans may also be used to implement arbitrage strategies or fulfill an obligation to deliver the securities to settle another transaction, according to the website of BM&FBovespa SA (BVMF3), operator of Brazil�� exchange.

• [By Denyse Godoy]

  OGX has the third-highest weight in the Ibovespa at 5.48 percent, according to data compiled by Bloomberg. That compares with 0.92 percent on Aug. 30, the data show. BM&FBovespa SA (BVMF3) is considering excluding stocks trading for less than 1 real, or penny stocks, from the Ibovespa, which is otherwise weighted just by trading volume, according to a statement on the exchange operator�� website.

Top 5 Mid Cap Stocks For 2014: NEC Corp (NIPNF)

NEC Corporation is a diversified company. The Information Technology (IT) Solution segment provides system integration, supporting, outsourcing and cloud services, servers, mainframes, super computers, wireless access devices and software. Carrier Network segment provides backbone network system, network access and operation support system, among others. Social Infrastructure segment provides broadcasting video system, control system, transportation and public system, fire and disaster prevention system, and others. Personal Solution segment provides smart phones, cellular phones, corporate computers, tablet terminals, mobile and wireless routers, and Internet service and display solution. The Others segment provides smart energy solution, electronic components and lighting fixtures. On October 1, 2013, it transferred 45% stake in NEC TOPPAN CIRCUIT SOLUTIONS, INC. to KYOCERA CORP, and sold all shares in NEC Magnus Communications Ltd. to NEC Networks & System Integration Corporation. Advisors' Opinion:

• [By WWW.MARKETWATCH.COM]

  LOS ANGELES (MarketWatch) -- Japan's Nikkei Average (JP:NIK) traded 0.5% higher in the early minutes Tuesday, extending the previous day's 0.9% advance, with the market getting some support from overnight gains for U.S. shares and a slightly weaker yen (dollar at 楼101.56 vs. 楼101.40 at Monday's open). Among the gainers, Toshiba Corp. (JP:6502) (TOSYY) rose 1.7%, Hitachi Ltd. (JP:6501) (HTHIF) gained 1.5%, NEC Corp. (JP:6701) (NIPNF) improved by 2.5%, Bridgestone Corp. (JP:5108) (BRDCF) added 2.7% to extend gains over the past couple weeks following the company's purchase of U.S.-based Masthead Industries, and Mitsubishi Heavy Industries Ltd. (JP:7011) (MHVYF) traded 1.1% higher as a Wall Street Journal report said the industrial major's Mitsubishi Aircraft unit had reached a tentative deal to sell 40 jets for the planned revival of defunct U.S. carrier Eastern Air Lines Group Inc. Auto makers were firmer as well, with Nissan Motor Co. (JP:7201) (NSANY) up 1.3%, Toyota Motor Corp. (JP:7203) (TM) up 0.5%, and Honda Motor Co. (JP:7267)

• [By MARKETWATCH]

  LOS ANGELES (MarketWatch) -- Japanese stocks slipped early Monday, with the Nikkei Stock Average (JP:NIK) down 0.1% at 14,298.17, and the Topix dropping 0.4%. Singapore-traded lead futures for the Nikkei Average had suggested a 0.8% gain for the index, but the indicator fell after the Cabinet Office reported fourth-quarter economic growth of 0.3%, flat from the previous quarter and below expectations in separate Reuters and Wall Street Journal/Nikkei surveys. The disappointing economic data also pushed the yen higher, weighing on some exporters, with Panasonic Corp. (JP:6752) (PCRFF) down 1.8%, NEC Corp. (JP:6701) (NIPNF) off 1.3%, and Sony Corp. (JP:6758) (SNE) down 0.7% after S&P downgraded the firm's credit rating to BBB- from BBB with a negative outlook. Shares of Internet retailer Rakuten Inc. (JP:4755) (RKUNF) dropped 12% after announcing plans to buy online messaging and telecom firm Viber Media Inc. for $900 million as well as posting below-consensus full-year profit. Banks were broadly lower, with Mizuho Financial Group Inc. (JP:8411) (MFG) off 1% and Sumitomo Mitsui Financial Group Inc. (JP:8316) (SMFG) off 1.1%, though Daiwa Securities Group Inc. (JP:8601)