by Bill Richards

Last month, it was reported that more than one-third of American adults went online to self-diagnose and receive information about their medical condition, according to a survey by the Pew Research Center’s Internet & American Life Project.

The results from the nationwide telephone survey found that 82 percent of respondents used Internet search engines such as Google, Yahoo and Bing, while 13 percent went straight to websites like WebMD.com, YourDiagnosis.com, FamilyDoctor.org and Medline Plus. Two percent used Wikipedia and one percent had depended on Facebook, Twitter and other social networks for medical information.

The study also found that 41 percent of survey participants who said they had searched online for details regarding their medical condition had it later confirmed and validated by a physician. This number is significantly higher than the 18 percent that said the doctor disagreed with the assessment.

Authors of the report explained that people have attempted to diagnose their ailments at home and now the Internet is just another aspect of their “personal health toolbox.” Whether it’s due to increased healthcare costs, the extensive wait-times or not having a family doctor, more and more individuals are turning to the Internet for health-related information.

TestCountry is a website that is growing in popularity as home healthcare sweeps the nation. The website, founded in 2001 and based in San Diego, California, offers an array of products and services in order to make “life easier.” At first glance, visitors and possible customers notice its extensive offerings: health kits, medical tests, products, supplies and free information packs.

By mixing the benefits of a visit to the local health clinic and the advantage of browsing online medical directories, the founders had a vision of bringing advanced direct-to-patient technology-based solutions. These would become remedies to the vast list of issues currently affecting the healthcare system, such as costs, wait-times and not even being able to see a doctor.

An example of some of its products include alcohol urine tests, home DNA paternity tests, dry disposable washcloths, environment check air quality home test, menopause urine test strips, mold test kits and much, much more.

Clients can find a wide variety of uses after ordering from TestCountry. A parent may be suspicious that his or her child is using drugs. By ordering a drug abuse test kit, a parent’s inklings can be verified, even discreetly. Employers may also want to perform drug screenings for potential employees, a product that TestCountry offers on its website.

TestCountry is a member of the Drug and Industry Association, National Defense Industry Association and Community Anti-Drug Coalitions of America. Furthermore, TestCountry has a national and international base of clients that work in many sectors, like manufacturing, retail and transportation. Therefore, the validity of the website’s inventory shouldn’t concern customers.

With these healthcare products being offered, the website founders state that patients can experience timely, affordable, accurate and confidential health information through the means of swift and convenient laboratory-based testing solutions.

The second half of this year has been great for gold. Prices have jumped from a low of $1560 in July to its current $1700. Early in October, prices were knocking on $1800, but failed to get over the milestone. However, gold has seen a pullback since then, and I believe that we could see a resurging gold market after these election results. Understandably, investors have been turning to gold as a hedge against the uncertainties that the market faces such as the U.S. fiscal cliff, Europe’s debt crisis and China’s cooling economy.

When it comes to gold, there are a wide variety of ways to invest. For the purposes of this article, we will talk about gold miners. My favorite play is AngloGold Ashanti (AU). To be fair, AngloGold recently settled a worker strike in South Africa, which was losing the company 32,000 ounces of gold each week. However, the strike is over, and workers will be heading back to work; hopefully, the company can make up a little of that production in the coming weeks.

Lets take a look at the fundamentals to determine the strength of AngloGold Ashanti. To start, the gold miner has a forward price to earnings ratio of 6.86, PEG of 0.96 and has a reasonable debt load, with the debt to equity ratio at 0.45. I like to see a current ratio of 2.72, because that tells me that the company is in strong enough financial position to pay off any unforeseen costs or liabilities. To continue reading, click here.

The tech industry is often mentioned as one of the highest-growth sectors, with many top performers delivering strong, rapid growth. Google (GOOG), Apple (AAPL), Microsoft (MSFT), AT&T (T), Cisco (CSCO), and Amazon (AMZN) have an enviable reputation in the sector, creating beautifully simple, intuitive products across all device segments. The sector is worth trillions of dollars, with a number of fast-moving companies attracting the attention of investment managers across the board.

One of them, Google, recently announced financial results for the quarter ended September 30th, 2012. Revenue was up 45% year-on-year, and the company earned its first $14-billion revenue in a quarter, an increase of 45% compared to the third quarter of 2011. The GAAP operating income in the third quarter of 2012 was $2.74 billion, or 19% of revenue, compared to GAAP operating income of $3.06 billion, or 31% of revenue, in the third quarter of 2011. Its revenues (advertising and others) were $11.53 billion, or 82% of consolidated revenue, representing a 19% increase over third quarter 2011 revenue of $9.72 billion. Google’s revenue from the United Kingdom totaled $1.22 billion, representing 11% of Google’s revenues in the third quarter of 2012, compared to the 11% in the third quarter of 2011.

I believe that Google is significantly overvalued based on valuation at its current price around $679 per share, but I also think its stock price could increase in the next few years. While many of its rivals are fretting about competition and decrease in market share, Google executives are excited that at just 14 years of age, the company has recorded a $14-billion revenue for the first time in a quarter. To continue reading, click here.

Austerity trends have arrived for companies in the Code Division Multiple Access (CDMA) business. Weak demand for network equipment and rising competition plagues the sector. The effects of declining demand in North America for network gear that runs on CDMA have been terrible. The entire sector is weak, but some companies are more vulnerable than others.

Recently, Alcatel-Lucent (ALU) reported second quarter results that showed a $312 billion loss. Its sales fell 7.1% from the period a year ago to about $4 billion. Alcatel-Lucent’s revenue from North America, which accounted for 39% of sales, fell 8.3% to $1.7 billion during the quarter. Alcatel-Lucent posted operating margins of 4% at the end of 2011, while its rival, Sweden-based Ericsson (ERIC), managed a margin for underlying earnings of 11.6%. China’s Huawei reported an operating margin of 15.8% in 2010, the last year for which figures are available.

I believe that Alcatel-Lucent is significantly undervalued at its current price of around $1 per share, but I don’t believe it is certain to grow in the next few years. While its rivals such as Cisco (CSCO), Nokia (NOK), Siemens (SI), and Ericsson are coping in a deteriorating macroeconomic environment, Alcatel-Lucent is going through a painful program to accelerate its transformation and reduce costs in order to keep ahead of market pressures.

Alcatel-Lucent may not prosper for several reasons. First, the CDMA business is disappearing. Verizon (VZ), the market leader in the U.S., Second, Alcatel-Lucent is faced with increasing pressure from its telecom vendor rivals and the harsh global economy. is phasing it out. To continue reading, click here.

Investing is all about financing a project with as little capital as possible to receive the most capital back as quickly as possible. Some companies appear better-poised to return capital to investors than others.

Some firms which are selling assets are trading at lower price multiple than firms which are tapping the markets for more capital. The former are attractive buy candidates, while the latter are not.

Companies Selling Debt

According to the Markit iTraxx Crossover Index, the credit ratings of 50 companies have been raised 14 basis points within four consecutive days in the UK. Legal & General Group Head of Credit Strategy Ben Bennett stated during an interview, “We’ve had an amazing run of spread compression and it’s only natural that credit takes a bit of a breather. There is still good demand for new issuance, particularly rare names or deals that provide more yield.”

Two of the world’s biggest companies, Nokia (NOK) and Pepsico (PEP) are selling bonds in Europe. Nokia, which is facing deteriorating sales and market share, has planned to bolster funds by selling convertible bonds in the new European market and thus prevent debt maturity failure. Many other local and international companies are also inclined to sell bonds in Euros to secure their respective financial positions. The increasing stock ratings of high-yield credit companies entice investments in the European market from many multinational businesses.

This sale will provide about $978 million for Nokia with debt maturities in 2017. To continue reading, click here.

There are few things quite so profitable as a government sanctioned monopoly. And when that monopoly is granted in a market with growing demand (the result of irresistible demographic forces), the stage is set for considerable value creation.

Yes, the pharmaceutical industry is a profitable one. But that river of profits comes with a dark side. Regardless of the size of these companies, they and their shareholders have learned, to the dismay of both groups, that research and development efforts do not necessarily scale. That is, it is difficult to forecast the payoff of an incremental $1 billion spent in R&D. With a need to constantly replenish their roster of patent-protected drugs, many pharmaceutical companies have aggressively used their financial heft to buy the innovation that they are increasingly hard-pressed to deliver internally. Great deal for biotechnology companies, questionable deal for pharma shareholders.

Here I will analyze five of the giants, and see how they stack up. In this analysis, I will focus on measures suggestive of management’s ability to operate with financial discipline, rather than digging into the pipeline of drugs in development for each of these behemoths.

Pfizer (PFE)

SG&A: Over the past three years, SG&A as a % of sales has jumped to 32.5% from 30.5%.

Research & Development: While this expense increased 16.5% between FY09 and FY11, when viewed as a % of sales, it appears that management has managed to wring some efficiencies out of their massive R&D program. The amount has dropped more than two percentage points, to 13.5% from 15.9%.

Cash and Short-Term Investments: $3.5 billion in cash and $23.3 billion in short-term investments sat on the balance sheet as of FY11.

Debt: Net Debt is $42.3 billion, down considerably from $55.7 billion in FY09. Leverage has dropped to 1.4x, from 2.2x. To continue reading, click here.

Mobile computing devices, such as smartphones and tablets, are displacing laptop and desktop computer sales in developed economies. This structural shift in the technology sector has sent shares of many personal computer companies down in price. Are their valuations low enough at today’s market prices to justify the risk of investing in a losing sector?

The End of An Era

After being number one in market share for six straight years, Hewlett-Packard Co. (HPQ) has dropped to second place behind Lenovo Group (LNVGY.PK). Surely this change was no surprise for HP CEO Meg Whitman, since it was widely anticipated by analysts and did not happen overnight.

Market research firm Gartner cited Lenovo’s acquisition of IBM‘s (IBM) personal computer unit seven years ago as a crucial source of its success. Lenovo captured 15.7% of sales in the last quarter, as compared to Hewlett-Packard’s 15.5%, according to a Gartner’s report.

Hewlett Packard’s sales slump is widely attributed to the decline in the demand of PC units after the sudden emergence of smartphones and other mobile devices like the iPad. Reigning since 2006, Hewlett-Packard has been unable to compete against Lenovo in developing markets.

Lenovo gained mostly in the less-developed countries – its planned acquisitions and high penetration in the emerging markets are outpacing the developed ones. Pacific Crest Securities analyst Brent Bracelin said, “It’s a whole new bigger trend coming, not just Lenovo.”

Don’t Pay Premiums in Troubled Sectors

Many firms in the personal computer ecosystem are seriously threatened by the evolution of consumer computing. Stock investors must demand a discount in the form of low valuations before even considering investing in these firms. To continue reading, click here.

Today many industries in the tech sector are in value territory. This fall from grace is apparent in how the firms of the SPDR Technology Selector Fund (XLK) trade at an average 15 price-to-earnings ratio which is only slightly higher than the 14 price-to-earnings ratio of the S&P 500 (SPY) fund companies. Many familiar semiconductor names trade at even lower valuations. Apparently, tech is no longer the darling of investors and the sector has nearly the same valuations as the broader stock market.

Investors can seize the opportunity offered by the market today by reviewing the challenges faced by different semiconductor stocks that are priced as value investments. In particular, semiconductor manufacturers and their suppliers are frequently trading at attractive multiples in today’s markets. Are they value investments or value traps?

PC Sales Slide

The tech sector is recoiling from the third quarter’s blow to personal computer sales. PC sales worldwide declined 8.3% compared with the last year’s third-quarter sales, according to Gartner Inc. market research.

Gartner head analyst Mikako Kitagawa said, “The overall PC market decline was triggered by a continuing slowdown in PC shipments,” and that the outlook for the launch of Microsoft Windows 8 is tenuous because “shipments were less vigorous as vendors and their channel partners liquidated inventory in the third quarter.”

Retailers resisted placing orders because of the weak back-to-school sales. These firms had cleared out their entire inventory before the launch of Windows 8. In contrast, the professional market remained unaffected. To continue reading, click here.

Is Ford (F) a bargain or a total lemon to stay away from? On the plus side, Ford’s earnings per share look good overall compared to Toyota (TM), Tata Motors (TTM), or even General Motors (GM). Ford currently has EPS of $4.40, with Toyota at $4.67, Tata Motors at $4.06, and GM at $2.81.

Looking at share price, some people think Ford is a real bargain, but the charts show a different story. The company suffered serious losses over the summer, and its share value has never really recovered. Ford’s share value sank, even though its sales increased by 13% in the U.S. in August. Ford has delivered some bestselling models, including the Escape SUV, the Focus compact, and the Fusion sedan. News reports indicate that sales for the new Escape increased by 37%, and Fusion sales increased by 21%.

The problem is that Ford’s success in its home market is not being duplicated overseas. The biggest problem for Ford is Europe, where its sales are now in free fall because of aggressive competition and a lousy economy. Ford’s European business reported a $404 million pretax operating loss in the second quarter of 2012. That is more than double the loss for the same period last year. Ford admitted that it lost $1,125 per car it made in Europe in the last year, and that its losses on the continent for this year might exceed $1 billion.

What this seems to indicate is that for every dollar it makes in the U.S., it loses in Europe. To continue reading, click here.

Developments made in medical science are coming at a faster pace in recent times. For patients, this is very beneficial, as a cure for thus far untreatable ailments may be close at hand, potentially saving thousands of lives. At the same time, this could provide a huge opportunity for investors. Which companies have the biggest potential to leap on new drug approvals, and what potential investment opportunities are out there?

GlaxoSmithKline (GSK) and Theravance (THRX) recently completed a phase 3 program for LAMA/LABA (UMEC/VI), which is used to treat chronic obstructive pulmonary disease (COPD). GlaxoSmithKline is on schedule to apply for regulatory approval for LAMA/LABA by 2013. If LAMA/LABA is approved, it will replace Advair, GlaxoSmithKline’s blockbuster drug, which brought in $8.1 billion in revenue in 2011. With total revenue of $20.02 billion in the second quarter, and total cash of $12.23 billion, GlaxoSmithKline is in a good position to push for approval of this drug. This could present a lucrative buying opportunity for investors. We will have to wait and see if LAMA/LABA is approved, but investors should watch closely for any new developments and buy opportunities.

Bapineuzumab, made by Johnson & Johnson (JNJ) and Pfizer (PFE), is now showing new promise. The experimental drug had previously failed to halt mental decline in Alzheimer’s patients. But new results show the drug might work if given earlier on, before most of the damage and memory loss has occurred, which may not be possible to reverse. Dementia is a global condition, affecting nearly 35 million people worldwide. To continue reading, click here.

New government requirements are putting car maker ingenuity to the test. According to the Wall Street Journal, “by 2025, the U.S. government wants large pickup trucks like the Chevrolet Silverado to get about 44% better mileage than today.” The prospect “could be a daunting challenge, particularly if General Motors (GM) doesn’t want to cut the towing capability, payload or power of its best-selling and highly profitable big pickup,” especially since GM has already “improved the Silverado’s fuel efficiency by 20% since 2002.” In the end, GM will have to up its game even further or stop making one of its most popular models.

But, there is a loophole. “Administration officials [have] highlighted the goal of boosting the average fuel efficiency of new cars and light trucks to 54.5 miles on a gallon of gasoline by 2025,” writes theWall Street Journal. “In the real world, however, an auto maker could still sell significant numbers of vehicles that don’t meet that target. If the Silverado falls short of the requirement that it get about 26 miles per gallon in 2025 – the official target as adjusted to reflect real-world driving results – GM could make up the difference by selling a smaller truck or car that gets better mileage than required for its class.”

While hybrid technology is not a requirement to accomplish these standards, the easiest way to do this is by using electric car technologies.

The Obama administration estimates the cost of converting a vehicle to that level of efficiency at $1,800 a vehicle by 2025, and “consumers who buy 2025 cars can expect to save more than $8,000 over the life of a car compared to 2011 models. To continue reading, click here.