Top Japanese Companies To Buy For 2014

The U.S. dollar fell to its lowest levels since December 18 against the Japanese yen after the U.S. employment report raised investor concerns over the health of the U.S. economy.

On Friday, the U.S. Bureau of Labor Statistics reported a gain of 74K nonfarm jobs, the smallest increase in three years. The figure missed analyst expectations of 196K by a wide margin.

News that the December U.S. unemployment rate fell to 6.7 percent from 7.0 percent in the prior month was dampened by the decline in labor force participation. The civilian labor force participation rate declined by 0.2 percent to 62.8 percent in December, equaling November's figure which was the lowest since 1978.

Top 10 Integrated Utility Companies For 2015: Dialog Semiconductor PLC (DLG)

Dialog Semiconductor Plc creates integrated, mixed signal integrated circuits (ICs), optimized for personal portable, short-range wireless, lighting, display and automotive applications. The Company operates in three business segments: Mobile Systems, Automotive and Industrial, and Connectivity. The Mobile Systems segment includes its power management and audio chips especially designed to meet the needs of the wireless systems markets and a range of advanced driver technologies for low power display applications - from Passive Matrix Organic Light Emitting Diodes (PMOLEDs), to electronic paper and Micro Electro-Mechanical Systems (MEMS) displays. The Automotive and Industrial segment consists of products, which address the safety, management and control of electronic systems in cars and for industrial applications. The Connectivity segment includes activities, such as short-range wireless, digital cordless and voice over Internet protocol (VoIP) technology. Advisors' Opinion:

• [By Corinne Gretler]

  Colruyt SA jumped the most in almost a year after reporting earnings that beat estimates. Direct Line Insurance Group Plc (DLG), the U.K.�� biggest home and motor insurer, rallied 3.8 percent after saying it will cut jobs. GSW Immobilien AG, Berlin�� largest residential landlord by market value, advanced 3.8 percent after saying both its chairman and chief executive officer will leave. Mining companies declined as metals fell.

• [By Jonathan Morgan]

  Dialog Semiconductor Plc (DLG) surged 6.5 percent to 12.55 euros, its highest price in two months, after Apple Inc. (AAPL), the company�� biggest customer, reported fiscal third-quarter revenue and iPhone sales that beat analysts��estimates.

• [By Jonathan Morgan]

  Direct Line (DLG) dropped 2.5 percent to 212.6 pence. RBS sold 300 million shares at 210 pence apiece in its third sale of a stake in the insurance company, according to a statement. The bank, which is majority owned by the U.K. government, reduced its holding in Direct Line by 20 percent to 28.5 percent. RBS slipped 1.3 percent to 364.1 pence.

Top Japanese Companies To Buy For 2014: Electro Scientific Industries Inc (ESIO)

Electro Scientific Industries, Inc. (ESI) incorporated on April 19, 1949, is a supplier of laser-based manufacturing solutions for the microtechnology industry. The Company operates high-technology manufacturing equipment, which consists of products that are organized in three groups: interconnect & microfabrication, semiconductor and components. The Company�� laser systems enable precise structuring of micron to submicron features in components and devices which are used in a wide variety of end products in the consumer electronics, computer, semiconductor, communications and other markets. Its laser microfabrication systems allow microelectronics, semiconductor, and other microtechnology manufacturers to physically alter select device features during high-volume production. In June 2012, it acquired Eolite Systems.

The Company�� laser-based systems improve production yields or enable improved performance for flexible and rigid high density interconnect printed circuit boards, semiconductor devices, light emitting diodes (LEDs), advanced semiconductor packaging, touch-panel glass, flat panel liquid crystal displays (LCDs) and other high value components. Additionally, it produces high-capacity test and inspection equipment that is critical to control process during the production of multilayer ceramic capacitors (MLCCs). Its equipment ensures that each component meets the electrical and physical tolerances required to perform properly. Lastly, it produces systems that use photonic technology to perform precision inspection for control and defect identification. The Company�� Interconnect & Microfabrication Group products address an expanding number of applications and materials on a broad set of substrates, including panels, continuous-feed reels, and discrete three dimensional components or devices.

Interconnect Via Drilling

For electrical interconnect applications, The Company�� laser via micro fabrication systems target applications that require the ! highest accuracy and smallest via (hole) dimensions to create electrical connections between layers in flexible circuits, high-density circuit boards and IC packages. The Company�� microvia drilling technology addresses the rapidly changing applications in IC packages, multichip modules and HDI circuit boards. Its ultraviolet (UV) laser processing systems employ technology in lasers, optics and motion control.

Advanced Microfabrication

The Company offers several platforms that enable customers to perform precision drilling, scribing, cutting, etching, routing or marking on many different types of materials and devices including glass, metal, plastic, paint and ceramics. It also offer laser ablation systems that ablate material for identification and analysis applications, including forensics, mineral analysis and research.

Semiconductor Group (SG)

The Company�� Semiconductor Group products address multiple applications that utilize laser energy to process materials on wafer-based substrates. This includes traditional silicon wafers, LEDs wafers, and new ultrathin silicon wafers used in the three-dimensional (3D) packaging applications. Semiconductor Memory Yield Improvement Systems includes semiconductor memory yield improvement products are designed to cost-effectively enable post-repair yield improvements in the manufacturing of dynamic random access memory (DRAM) memory devices.

3D Semiconductor Wafer Processing

The 3D chip packaging technologies is driving the need for silicon wafers to become thinner in order to allow for stacking of wafers within the same packaging geometry. As wafers become thinner, they become more challenging to cut into discrete chips using traditional mechanical saws. The Company�� model 9900 uses a laser to dice ultra-thin silicon wafers, those with a thickness of 50 microns or below, and to singulate interposers. In addition, this platform can be used to scribe next generation thin film ! materials! that lend themselves to laser processing.

LED Wafer Scribing

The Company�� AccuScribe line of sapphire wafer scribing systems is a key component in the manufacture of LEDs. During production, LEDs are created on a thin wafer of synthetic sapphire crystal that must be broken into individual units at the end of the process. The brittle nature of the sapphire wafer requires that it be carefully cut in order to prevent unwanted fractures, yield losses, and lower light output when the wafer is broken apart into discrete LEDs. The AccuScribe systems use a laser to scribe the wafer with a precise groove between individual LEDs. When mechanical force is applied to the wafer, it fractures along these grooves and allows the wafer to be split apart into discrete LEDs. These systems are capable of scribing both standard and high brightness designs for general illumination applications. In addition, this platform can be used to address singulation of various LED packaging materials.

LCD Repair

The Comapny's laser LCD repair systems are critical to improving yields in the manufacture of flat panel displays. During production, individual pixels of a display may develop electrical defects that result in no light emission or the emission of only a steady white light. To correct these defects, flat panel display producers employ a laser repair process to isolate the electrical defects during production by cutting the inputs to the pixel. Its laser systems are primarily sold to the manufacturers of LCD repair tools as a key component of their products.

Semiconductor Systems

The products include industry wafer marking equipment, wafer and circuit trim tools, and LCD repair tools. Wafer marking equipment is used for serialization and wafer identification by both manufacturers of semiconductor wafers and within semiconductor fabs. Wafer and circuit trim tools are laser systems that adjust the electrical performance of semiconductor devic! es or hyb! rid circuits by removing a precise amount of material from one or more circuit components.

Components Group (CG)

The Company designs and manufactures products that combine high-speed small parts handling technology with real-time control systems to provide automated, cost-effective inspection solutions for manufacturers of MLCC and other passive components such as capacitor arrays, inductors, resistors, varistors and hybrid circuits. These components, produced in quantities of trillions of units per year, process analog, digital and high-frequency signals and are used in all electronic products.

The Company provides several types of products and solutions in this market. Its MLCC test systems employ high-speed handling and positioning techniques to precisely load, test and sort MLCCs based on their electrical energy storage capacity, or capacitance, and their electrical energy leakage, or dissipation factor. Its 35XX series is the productive tester. Its 3510 model enables high speed testing of the industry�� smallest metric 0402 capacitors used primarily in advanced cell phone and tablet designs. It also produces consumable products, such as carrier plates and termination belts, both of which are used to hold MLCCs during the manufacturing and testing process.

The Company competes with Mechanics, Ltd., LPKF Laser & Electronics AG, Mitsubishi Electric Corporation, Orbotech Ltd., InnoLas Systems GmbH, DISCO Corporation, Laser Solutions, Inc., Quantel USA, Inc., Humo Laboratory, Ltd. and HOYA Corporation.

Advisors' Opinion:

• [By Eric Volkman]

  Electro Scientific Industries (NASDAQ: ESIO  ) has a new division under its corporate wing. The company has inked a definitive agreement to purchase the semiconductor systems unit of GSI Group (NASDAQ: GSIG  ) . The terms of the deal were not disclosed.

• [By Evan Niu, CFA]

  What: Shares of Electro Scientific (NASDAQ: ESIO  ) popped briefly today, up by 11% at the high, after the company reported earnings.

  So what: Revenue in the fiscal fourth quarter totaled $39.6 million, which translated into a non-GAAP net loss of $1 million, or $0.03 per share. Both figures came out better than expected, as consensus estimates were calling for $38.1 million in revenue and an adjusted loss of $0.07 per share.

Top Japanese Companies To Buy For 2014: Sutor Technology Group Ltd (SUTR)

Sutor Technology Group Limited, incorporated on May 1, 1997, manufacture fine finished steel products. The Company utilizes a range of processes and technological methodologies to converts steel manufactured by third parties into fine finished steel products. The Company's product offerings are focused on finished steel products, specifically hot-dip galvanized steel (HDG steel), and pre-painted galvanized steel, or PPGI. In addition, the Company produces acid pickled steel (AP steel), and cold-rolled steel. The Company's three operating segments are categorized according to the Company's three operating subsidiaries, which include Changshu Huaye, which manufactures and sells HDG steel and PPGI products; Jiangsu Cold-Rolled, which manufactures and sells HDG steel, AP steel and cold-rolled steel, and Ningbo Zhehua, which manufactures and sells welded steel pipe products.

The Company sells its products to customers who operate primarily in the solar energy, appliances, automobile, construction, infrastructure, medical equipment and water resource industries. The Company's primary export markets are Europe, the Middle East, Asia, and South America. The Company's manufacturing facilities, located in Changshu, China, have three HDG steel production lines, one PPGI production line, one AP steel production line and one cold-rolled steel line. The Company's products include HDG steel, PPGI, AP steel, cold-rolled steel and welded steel pipe products. The Company's HDG steel and PPGI products are primarily manufactured by Changshu Huaye and the Company's AP steel and cold-rolled steel products are primarily manufactured by Jiangsu Cold-Rolled.

HDG Steel

The Company manufactures corrosion-resistant and zinc-coated HDG steel in different dimensions and using different materials and specifications by its customers. HDG steel products are manufactured from steel substrate of cold-rolled or hot-rolled pickled coils by applying zinc to the surface of the material to enhance its! corrosion protection. HDG steel products are principally used in the electrical household appliances and construction markets. Sales of HDG steel products amounted to approximately 451,269 MT in fiscal year 2012, representing approximately 63.8% of the Company's total revenue. The Company's HDG steel products are manufactured by Changshu Huaye and Jiangsu Cold-Rolled. Changshu Huaye produces only HDG of cold-rolled steel.

PPGI Products

PPGI products are made to order based on customer specifications. The Company's PPGI products��specification generally ranges from 700mm to 1250mm in width and from 0.2mm to 1.2mm in thickness. The Company's PPGI products are used in solar energy, appliances and construction materials. The Company produces its PPGI by color-coating on HDG of cold-rolled steel and then coating them in various colors according to customer requirements. The Company's PPGI production line is equipped with the twice baking and coating technology, which together with indirect heating, enhances the color coated layers adhesion to the galvanized zinc layer.

AP Steel

Acid pickling is a process that removes scales and oxides from the steel surface by pickling, cold rolling and annealing. AP steel products are used as a raw material for cold-rolled steel strip, HDG steel, as well as components of automobile and manufacturing equipment. AP steel products come in several different dimensions and using different materials and different specifications.

Full-Hard, Cold-rolled Steel Products

Full-hard cold-rolled steel strips are treated in an annealing process and are used to produce HDG of cold-rolled steel. The Company produces full-hard cold-rolled steel strips through a reverse cold rolling mill.

Welded Steel Pipe Products

The Company's subsidiary Ningbo Zhehua has one advanced Joint Center of Excellence (JCOE) production line for large-diameter, double-side, submerged-arc welded steel pipes, t! hree US L! incoln production lines for spiral seam, double-side, submerged-arc welded steel pipes, and two REF production lines for roll-bending, double-side, submerged-arc welded steel pipes. Ningbo Zhehua is specialized in manufacturing large-diameter, double-side, submerged-arc welded steel pipes and spiral seam steel pipes. The finished products are used for oil and gas transmission, municipal water supply projects, sewage treatment projects, and piling.

The Company competes with ArcelorMittal and Posco Steel.

Advisors' Opinion:

• [By Monica Gerson]

  Sutor Technology Group (NASDAQ: SUTR) is projected to report its Q4 earnings at $0.10 per share on revenue of $152.96 million.

  Le Gaga Holdings (NASDAQ: GAGA) is estimated to report its Q4 earnings.

• [By James E. Brumley]

  To tell the truth, I had almost forgotten about Sutor Technology Group Ltd. (NASDAQ:SUTR) after posting my "right stock, wrong time" speech back on the 9th. While I loved the way SUTR had broken past a horizontal ceiling at $1.83 after several weeks' worth of trying, the bullish move itself was a little overheated and looked like it was setting up a near-term pullback. Only after that dip would the stock be a healthy buy again.

Top Japanese Companies To Buy For 2014: Stream Group Ltd (SGO)

Stream Group Limited, formerly LongReach Group Limited, is an Australia-based company operating in the information and communications technology (ICT) sector. The Company is engaged in the design, integration, installation and maintenance of integrated information and communications technology based products and services to the defense, public safety and security sectors, as well as for government, telecommunications and corporate customers, both locally and internationally. The Company together with its subsidiaries is also engaged in the provision of consulting services to certain key defense organizations. In January 2013, the Company sold its C4i business. Advisors' Opinion:

• [By Jonathan Morgan]

  Saint-Gobain (SGO) dropped 3.7 percent to 36.87 euros. Morgan Stanley cut its rating on the stock to underweight, similar to a sell recommendation, from equal weight, saying it doesn�� see a recovery yet in the European building industry and the contribution from emerging markets will slow.

Top Japanese Companies To Buy For 2014: Selectica Inc.(SLTC)

Selectica, Inc. provides contract management and sales configuration software solutions that allow enterprises to manage sell-side business processes. It offers Selectica contract lifecycle management (CLM) solution, a contract authoring, analysis, repository, and process automation product that is offered on-premise or hosted basis enables customers to create, manage, and analyze contracts in a single repository. The company also offers Selectica sales configuration (SCS) solution, which consolidates configuration, pricing, and quoting functions into a single application platform. It provides SCS solutions to manufacturers, service providers, and financial services companies to streamline the opportunity-to-order process. In addition, the company provides professional implementation and customization services; on-demand hosting services for CLM solutions; and complex product configuration modeling services for SCS solutions. It sells its CLM products primarily through its direct sales force and strategic and OEM partners, as well as SCS products primarily through partnership relationships in the United States, Canada, India, New Zealand, Switzerland, and the United Kingdom. The company was founded in 1996 and is headquartered in San Jose, California.

Advisors' Opinion:

• [By The GeoTeam]

  Our recent 2013 articles on SaaS companies Selectica (SLTC), E2open (EOPN), Responsys (MKTG), Vocus (VOCS), and ExactTarget (ET) highlighted such opportunities. The average return since the inception of our coverage currently stands at around 34% (55% at their highs).

Top Japanese Companies To Buy For 2014: Eyes on The Go Inc (AXCG)

Eyes on the Go, Inc., incorporated on August 26, 2010, designs, implements, and provides services for the remote real-time monitoring of, and the control of equipment and devices located at, businesses and other facilities via computers, wireless handheld devices and television equipment using the Internet, through its Website, www.eyesonthego.com, or internal communications. As of May 1, 2011, the Company entered into a Plan and Agreement of Merger by and among the Company, Eyes Enterprises, Inc. and its wholly owned subsidiary, and EOTG, under which Enterprises was merged with and into EOTG, with EOTG being the surviving entity. As a result of this merger, the Company changed its name to Eyes on the Go, Inc. and EOTG changed its corporate name to Eyes Enterprises, Inc. On May 11, 2011 the Company completed a Plan and Agreement of Merger with Mutual Exchange Corp. The Company was considered to be the accounting acquirer, and the merger was accounted for as a reverse merger, whereby the Company being the accounting survivor.

Users of the Company�� services can view monitored facilities from video cameras, as well as receive temperature and other data; can remotely control devices, such as thermostats, lights and locks, and can receive e-mail-based alerts of door entries and other events with video clips and of equipment failures and deviations from temperature and other parameters. Its system can also store images and data for review. The Company markets primarily to business owners and managers in the hospitality industry.

The Company competes with Control4 Corporation, SVAT Electronics, Motorola, Inc., iControl Networks, Inc., Mi Casa Verde, Inc. and ADT Security Services, Inc.

Advisors' Opinion:

• [By Peter Graham]

  Last Friday, small cap stocks Kiwibox.com Inc (OTCMKTS: KIWB), Eyes on The Go Inc (OTCMKTS: AXCG) and Green Endeavors Inc (OTCMKTS: GRNE) were sinking 37.5%, 28.57% and 23.9%, respectively. Moreover, it should be mentioned that all three small cap stocks have been the subject of recent paid promotions or investor relation campaigns which have gotten them mentions in various investment newsletters or investor alerts. So are the promotional or investor relation campaigns over with for these three small caps? Here is a quick look to help you decide:

• [By Peter Graham]

  Small cap stocks Eyes on The Go Inc (OTCMKTS: AXCG), Quadrant 4 Systems Corp (OTCMKTS: QFOR) and Cloud Security Corp (OTCMKTS: CLDS) were getting attention last week, but all three stocks trended downward on Monday. It should be mentioned that none of these stocks have been overly or heavily paid promotions. So what will these three small cap stocks do on the last trading day of the year and for the rest of this week? Here is a closer look:

Top Japanese Companies To Buy For 2014: Echo Therapeutics Inc (ECTE)

Echo Therapeutics, Inc. (Echo), incorporated on September 10, 2007, is a transdermal medical device company. The Company is developing Prelude SkinPrep System (Prelude) as a technology to allow for painless and skin permeation that enable both analyte extraction and needle-free drug delivery. The Company is developing its Symphony CGM System (Symphony) as a non-invasive, wireless continuous glucose monitoring (CGM) system for use in hospital critical care units and for people with diabetes. The Prelude SkinPrep System (Prelude), a component of its Symphony CGM System, allows for skin permeation that enables extraction of analytes such as glucose. Prelude�� platform skin preparation technology also allows for needle-free, transdermal drug delivery.

Symphony CGM System

The Symphony CGM System incorporates a Prelude skin preparation device, transdermal sensor, wireless transmitter and data display monitor. When the electro-chemical glucose sensor is placed on the prepared site, it uses glucose oxidase to generate a continuous current that is proportional to the concentration of blood glucose in the vessels beneath the epidermis. The signals are then wirelessly transmitted to a remote monitor. The monitor, calibrated periodically with a reference blood glucose measurement, converts the data to a glucose measurement based on the reference value. The monitor displays glucose readings and also contains customizable early-warning alarms for hypo- or hyperglycemia.

Prelude SkinPrep System

The Company is developing Prelude as a transdermal skin preparation device for Symphony to improve the access to the interstitial fluids and the flow of molecules across the protective membrane of the stratum corneum, the outmost protective layer of the skin. Prelude incorporates the Company's skin abrasion control technology into a hand-held device used to prepare a small area of the skin. The non-invasive sensor is applied to this prepared area in order to measure the in! terstitial glucose levels.

Specialty Pharmaceuticals

The Company�� specialty pharmaceuticals pipeline is based on itsAzone transdermal drug reformulation technology. AzoneTS is a nontoxic, nonirritating skin penetration that is intended to enable topical application of food and drug administration (FDA) -approved drugs, including pharmaceutical products that previously could only be administered systemically. Its advanced drug candidate is Durhalieve, an AzoneTS formulation of triamcinolone acetonide, medium potency corticosteroid approved by the FDA for treatment of corticosteroid-responsive dermatoses. AzoneTS increases lipid membrane fluidity in the stratum corneum layer of the skin, thereby decreasing resistance to topically applied therapeutics.

The Company competes with Roche, Johnson & Johnson, Bayer, Abbott Laboratories , DexCom, Inc., Medtronic, Inc., Edwards Lifesciences Corporation, Optiscan Biomedical Corp., Medtronic, Glysure, Glumetrics Inc., Maquet and A. Menarini Diagnostics S.r.l.

Advisors' Opinion:

• [By Roberto Pedone]

  Another under-$10 health care player that's quickly moving within range of triggering a major breakout trade is Echo Therapeutics (ECTE), which is a transdermal medical device company with skin permeation technology. This stock has been destroyed by the bears so far in 2013, with shares off huge by 70%.

  If you take a look at the chart for Echo Therapeutics, you'll notice that this stock has been uptrending strong for the last month, with shares moving higher from its low of $2.14 to its intraday high of $3.06 a share. During that uptrend, shares of ECTE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has pushed shares of ECTE back above its 50-day moving average at $2.65 a share, and it's just starting to push ECTE into breakout territory, since the stock has cleared some key near-term overhead resistance levels at $2.98 to $2.99 a share. That move is quickly pushing shares of ECTE within range of triggering an even bigger breakout trade.

  Market players should now look for long-biased trades in ECTE if it manages to break out above some major near-term overhead resistance at $3.30 a share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average volume of 211,103 shares. If that breakout triggers soon, then ECTE will set up to re-test or possibly take out its next major overhead resistance levels at $4 to $4.50 a share, or possibly even $5 to $6 a share.

  Traders can look to buy ECTE off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $2.65 a share, or right below more near-term support at $2.50 a share. One can also buy ECTE off strength once it clears $3.30 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

• [By Bryan Murphy]

  Truth be told, Echo Therapeutics Inc. (NASDAQ:ECTE) doesn't look like a particularly impressive stock right now. At $2.92 per share, ECTE is just trading right around where it was a few days ago, not to mention a few weeks ago. And, without any real "news" from the company in months, it's tough to think the market's going to be getting excited about the stock anytime soon. When you take a closer look at Echo Therapeutics though, a few subtle-but-compelling clues start to appear.