Hand Soap Could Cause Liver Cancer, New Study Says

Svanblar/Shutterstock A common antimicrobial agent called triclosan causes liver fibrosis and cancer in laboratory mice through mechanisms also relevant to humans, researchers at the University of California, San Diego School of Medicine have found Triclosan's broad use in consumer goods -- including liquid hand soaps, toothpastes, shampoos, cosmetics, plastics, yoga mats, cutting boards and ice cream scoops -- presents "a very real risk of liver toxicity for people, as it does in mice," said Robert H. Tukey, a UC-San Diego professor and co-author of the study, published Monday in Proceedings of the National Academy of Sciences. Triclosan, a synthetic, broad-spectrum antibacterial chemical, is coming under fire because of its links to endocrine disruption that could cause infertility, impaired muscle function and now increased cancer risks. It's All Around The UC-San Diego study showed that mice exposed to triclosan for six months (roughly equivalent to 18 human years) had more and larger chemical-induced liver tumors than mice not exposed to the antimicrobial. Researchers believe triclosan may interfere with the protein responsible for detoxifying foreign chemicals in the body, thereby causing liver cells to proliferate and, over time, become cancerous tumors. Studies have found traces of triclosan in 97 percent of breast milk samples from lactating women and in the urine of nearly 75 percent of people tested, according to a statement by UC San Diego Health System. Triclosan is also one of the seven most frequently detected compounds in streams across the United States, the statement says. "We could reduce most human and environmental exposures by eliminating uses of triclosan that are high-volume, but of low-benefit, such as inclusion in liquid hand soaps," said Bruce D. Hammock, professor at University of California, Davis. "Yet we could also for now retain uses shown to have health value -- as in toothpaste, where the amount used is small." Colgate-Palmolive (CL) recently came under fire because its Total toothpaste contains triclosan. A recent Care2 petition, asking Colgate to remove triclosan from its toothpaste, so far has received almost 68,000 signatures. Triclosan is already under scrutiny by the U.S. Food and Drug Administration. On its website, the FDA says, "Triclosan is not currently known to be hazardous to humans. But several scientific studies have come out since the last time FDA reviewed this ingredient that merit further review." More from Lisa Kaplan Gordon
•Pediatrician Sounds Alert on Wearable Baby Monitors •Walmart Changes Price-Match Policy Again After PS4 Fraud •Difference Between Rich and Poor? 8 Teeth, Study Says

5 Stocks With Big Insider Buying

DELAFIELD, Wis. (Stockpickr) -- Corporate insiders sell their own companies' stock for a number of reasons. 


Must Read: Warren Buffett's Top 10 Dividend Stocks

They might need the cash for a big personal purchase such as a new house or yacht, or they might need the cash to fund a charity. Sometimes they sell as part of a planned selling program that they have put in place for diversification purposes, which allows them to sell stock in stages instead of selling all at one price.

Other times they sell because they think their stock is overvalued and the risk/reward is no longer attractive. Some even dump their own stock because they have inside knowledge that a competitor is eating their lunch and stealing market share. 


But insiders usually buy their own shares for one reason: They think the stock is a bargain and has tremendous upside.

The key word in that last statement is "think." Just because a corporate insider thinks his or her stock is going to trade higher, that doesn't mean it will play out that way. Insiders can have all the conviction in the world that their stock is a buy, but if the market doesn't agree with them, the stock could end up going nowhere. Also, I say "usually" because sometimes insiders are loaned money by the company to buy their own stock. Those loans are often sweetheart deals and shouldn't be viewed as organic insider buying.

At the end of the day, it's institutional money managers running big mutual funds and hedge funds that drive stock prices, not insiders. That said, many of these savvy stock operators will follow insider buying activity when they agree with the insider that the stock is undervalued and has upside potential. This is why it's so important to always be monitoring insider activity but twice as important to make sure the trend of the stock coincides with the insider buying.

Recently, a number of companies' corporate insiders have bought large amounts of stock. These insiders are finding some value in the market, which warrants a closer look at these stocks. Here's a look five stocks whose insiders have been doing some big buying per SEC filings.

Must Read: 12 Stocks Warren Buffett Loves in 2014

Jive Software

One technology player that insiders are active in here is Jive Software (NS), which provides a social business software platform to businesses, government agencies, and other enterprises. Insiders are buying this stock into massive weakness, since shares are down sharply by 43% so far in 2014.

 

Jive Software has a market cap of $446 million and an enterprise value of $365 million. This stock trades at a fair valuation, with a price-to-sales of 2.68 and a price-to-book of 5.67. Its estimated growth rate for this year is 45.5%, and for next year it's pegged at 30%. This is a cash-rich company, since the total cash position on its balance sheet is $98.18 million and its total debt is $6.60 million.

 

A director just bought 260,819 shares, or about $1.71 million worth of stock, at $6.53 to $6.60 per share.

 

From a technical perspective, JIVE is currently trending just above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock recently pulled back off its short-term high of $7.14 a share with heavy downside volume flows. That drop has now pushed the stock to right above its 50-day moving average at $6.10 a share.

If you're bullish on JIVE, then I would look for long-biased trades as long as this stock is trending above its 50-day at $6.10 a share and then once it breaks out above some key near-term overhead resistance levels at $7.14 a share to its 200-day moving average of $7.43 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 557,678 shares. If that breakout triggers soon, then JIVE will set up to re-test or possibly take out its next major overhead resistance levels $8.50 to $9 a share, or even $9.50 to $10 a share.

Must Read: 10 Stocks George Soros Is Buying

Groupon

Another technology player that insiders are jumping into here is Groupon (GRPN), which operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount worldwide. Insiders are buying this stock into strength, since shares have rallied higher by 19% over the last three months.

Groupon has a market cap of $4.9 billion and an enterprise value of $4.2 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 49. Its estimated growth rate for this year is -54.5%, and for next year it's pegged at 200%. This is a cash-rich company, since the total cash position on its balance sheet is $855.17 million and its total debt is zero.

The CEO just bought 454,166 shares, or around $3.62 million worth of stock, at $7.85 per share.

From a technical perspective, GRPN is currently trending just above both its 50-day and 200-day moving averages, which is bullish. This stock recently gapped up sharply higher from $5.70 to over $7.50 with strong upside volume flows. Shares of GRPN have now pulled back off its recent high of $8.28 a share and the stock is starting to approach both its 200-day and 50-day moving averages.

If you're in the bull camp on GRPN, then I would look for long-biased trades as long as this stock is trending above its 200-day at $7.03 or its 50-day at $6.77 a share and then once it breaks out above some key near-term overhead resistance levels at around $7.75 to $8.28 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 15.59 million shares. If that breakout triggers soon, then GRPN will set up to re-test or possibly take out its next major overhead resistance level at $9 a share. Any high-volume move above $9 will then give GRPN a chance to re-fill some of its previous gap-down-day zone from February that started near $11 a share.

 

Must Read: 7 Stocks Warren Buffett Is Selling in 2014

 

3D Systems

One technology player that insiders are loading up on here is 3D Systems (DDD), which operates as a provider of 3D printing centric design-to-manufacturing solutions in the U.S., Germany, the Asia-Pacific, and other European countries. Insiders are buying this stock into major weakness, since shares have dropped big by 61% so far in 2014.

3D Systems has a market cap of $3.9 billion and an enterprise value of $3.5 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 178 and a forward price-to-earnings of 34. Its estimated growth rate for this year is -14.1%, and for next year it's pegged at 42.5%. This is a cash-rich company, since the total cash position on its balance sheet is $377.33 million and its total debt is $9.89 million.

A director just bought 26,479 shares, or about $881,000 worth of stock, at $33.09 to $33.20 per share.

From a technical perspective, DDD is currently trending well below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last five months, with shares sliding sharply lower from its high of $69.56 a share to its new 52-week low of $32.64 a share. During that downtrend, shares of DDD have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of DDD have now started to rebound off that $32.64 low and it's beginning to move within range of triggering a near-term breakout trade.

If you're bullish on DDD, then I would look for long-biased trades as long as this stock is trending above its new 52-week low of $32.64 a share and then once it breaks out above some near-term overhead resistance levels at $37.10 to $38.66 a share and then above $39.15 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 3.16 million shares. If that breakout develops soon, then DDD will set up to re-fill some of its previous gap-down-day zone from October that started at $44.27 a share.

Must Read: 10 Stocks Carl Icahn Loves in 2014

Generac

One diversified machinery player that insiders are snapping up a decent amount of stock in here is Generac (GNRC), which designs, manufactures, and markets power generation equipment and other engine powered products for the residential, light commercial, industrial, and construction markets in the U.S., Canada, and internationally. Insiders are buying this stock into weakness, since shares have dropped notably by 22% so far in 2014.

Generac has a market cap of $3 billion and an enterprise value of $3.8 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 17.6 and a forward price-to-earnings of 12.7. Its estimated growth rate for this year is -27%, and for next year it's pegged at 8.9%. This is not a cash-rich company, since the total cash position on its balance sheet is $173.16 million and its total debt is $1.11 billion.

A director just bought 25,000 shares, or about $1.05 million worth of stock, at $42.17 per share.

From a technical perspective, GNRC is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock recently formed a triple bottom chart pattern at $39.08, $38.75 and $38.64 a share. Following that bottom, shares of GNRC have started to rebound sharply higher as the stock has pushed back above its 50-day moving average of $42.41 a share. That move has now pushed shares of GNRC within range of triggering a near-term breakout trade.

If you're bullish on GNRC, then I would look for long-biased trades as long as this stock is trending above its 50-day at $42.41 a share or above more near-term support at $40 a share and then once it breaks out above some near-term overhead resistance levels at $45 to $45.72 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 1.17 million shares. If that breakout kicks off soon, then GNRC will set up to re-test or possibly take out its next major overhead resistance levels at $48.27 to $50 a share, or even $54 a share.

Must Read: 10 Stocks Billionaire John Paulson Loves in 2014

ConocoPhillips

One final stock with some decent insider buying is ConocoPhillips (COP), which explores for, develops, and produces crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. Insiders are buying this stock into modest weakness, since shares have traded off by 9.6% over the last three months.

ConocoPhillips has a market cap of $88 billion and an enterprise value of $103 billion. This stock trades at a fair valuation, with a trailing price-to-earnings of 9.5 and a forward price-to-earnings of 13.2. Its estimated growth rate for this year is 3.3%, and for next year it's pegged at -8%. This is not a cash-rich company, since the total cash position on its balance sheet is $5.78 billion and its total debt is $21.19 billion. This stock currently sports a dividend yield of 4.1%.

A vice president just bought 9,000 shares, or about $629,000 worth of stock, at $69.95 per share.
From a technical perspective, COP is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been uptrending over the last month, with shares moving higher from its low of $63.56 to its recent high of $73.22 a share. During that uptrend, shares of COP have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of COP within range of triggering a major breakout trade above some key near-term overhead resistance levels.

If you're bullish on COP, then I would look for long-biased trades as long as this stock is trending above some near-term support levels at $69.54 or $68.21 a share and then once it breaks out above some key near-term overhead resistance levels at $73.22 to its 200-day moving average of $74.53 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 6.76 million shares. If that breakout materializes soon, then COP will set up to re-test or possibly take out its next major overhead resistance levels at $78 to $80 a share.

To see more stocks with notable insider buying, check out the Stocks With Big Insider Buying portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Must Read: Warren Buffett's Top 10 Dividend Stocks

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

 

Investing in TreeHouse May Revamp Your Portfolio

The consumer staples sector is facing several hiccups over the past few quarters as consumers are spending less and demand is declining. Investors can still expect a healthy return in this sector by investing in TreeHouse Foods Inc. (THS) as this player is playing well despite of all odds.

About this great player

TreeHouse is a food manufacturer servicing primarily the retail grocery and foodservice distribution channels. The company's products include non-dairy powdered creamers, private label canned soups, salad dressings and sauces, powdered drink mixes, hot cereals, macaroni and cheese, skillet dinners, Mexican sauces, jams and pie fillings, pickles and related products, aseptic sauces, refrigerated salad dressings, and liquid non-dairy creamer. It is the largest manufacturer of pickles and non-dairy powdered creamer in the United States, and the largest manufacturer of private label salad dressings, powdered drink mixes, and instant hot cereals in the United States and Canada, based on sales volume.

The company manufactures and sells private label products to retailers, such as supermarkets and mass merchandisers, for resale under the retailers' own or controlled labels; private label and branded products to the foodservice industry. TreeHouse operates in three segments: North American Retail Grocery, Food Away From Home, and Industrial and Export. This player has a broad portfolio across dry groceries and is a leader in 18 grocery categories shown below.

A look at the recent performance

On Nov. 6, the Oak Brook, Illinois-based company reported third quarter adjusted earnings per share, which increased 8.5% to $0.89 compared to $0.82 in the prior year. Adjusted EBITDA for the quarter was $103.5 million, a 32.7% increase compared to the prior year. Improved volume/mix and acquisitions are the main catalysts for the increase in adjusted EBITDA. Net sales jumped to $795.7 million compared to $567.2 million last year, an increase of 40.3%, largely due to sales from acquisitions and favorable volume/mix in each of its segments.

Gross margins in the third quarter decreased to 19.9% from 20.3% last year. This is mainly because of lower margin business from acquisitions, and the related acquisition and integration costs offset an improved sales mix and operational efficiencies. Unfavorable foreign exchange rates also contributed to the decrease. Selling, distribution, general and administrative expenses increased $30.8 million in the third quarter this year, or 47.7%, to $95.5 million from $64.7 million in the same period last year. Further, after considering the impact of acquisition and integration costs in each year, selling, distribution, general and administrative expenses as a percentage of net sales was 10.9% for the third quarter of 2014 compared to 10.7% in 2013.

Other expenses for the third quarter was $17.2