Out Fox The $treet

Just about 50 days ago, Heckmann (HEK) announced the deal to purchase Power Fuels. The deal turns Heckmann into a domestic leader in the wastewater removal industry supporting the shale oil and gas boom. See our article "Heckmann Makes Game-Changing Merger" for more details on the deal. While the stock initially popped from just above $2.50 all the way to $5, it has now slumped all the way to the $3.60s. Lower drilling in the domestic U.S. where both Heckmann and Power Fuels operate has impacted the excitement over the deal. Have the economics really changed that much to warrant a 30% drop? Makes us wonder what is going on. Read the full article at Seeking Alpha. Disclosure: Long HECK. Please review the disclaimer page for more details. 

Lockheed Martin Corporation (LMT) continues to report earnings that prove revenue growth can be over rated. The defense contractor reported Q3 2012 revenue that slightly dropped from the $12.1B in 2011, yet the company managed to beat earnings estimate and hike the dividend yield by 15%. The amazing story about this stock is that even with the stock hitting multi-year highs, the stock will now yield 5% after this hike to a $1.15 dividend per quarter. Read the full article at Seeking Alpha. Disclsoure: Long LMT. Please review the disclaimer page for more details. 

After the close on Tuesday, InvenSense, Inc. (INVN) reported earnings that, combined with the replacement of the CEO, sent the stock down as much as 20% at one point. This once high flying maker of motion sensing technology continues to struggle with forecasting the actual market growth of its products. In previous quarters, the company spoke of a bright future interrupted by a chip shortage from Qualcomm (QCOM) limiting the ability of handset makers to utilize the motion sensing technology for 4G LTE phones. Now the Q2 2013 earnings ending in September slightly beat estimates, but the company guided towards a weak December quarter. While still guiding strong yearly growth of 35%, the market is clearly disappointed that the higher end 40% growth rate wasn't reached. Read the full article at Seeking Alpha. Disclosure: Long INVN. Please review the disclaimer page for more details. 

The market has become very rocky at the end of October, but the Net Payout Yields model continues to hold strong. Over the past 30 days, the model sits virtually breakeven while the S&P 500 is down 3.3%. See below charts from Covestor. Even more importantly, these results place the YTD totals at a 19% gain for the model versus only 12% for the S&P 500. As the model approaches the 2nd year of being tracked and offered on Covestor, it again looks to outpace the market by over 5%. See below stats for the performance since 11/2/12. For any investors looking for a conservative, non-emotional method for outperforming the S&P 500, the Net Payout Yields model continues to offer that solution. The model rountinely sells high and buy lows which very few models can actually achieve. Please contact us directly at info@stonefoxcapital.com . Disclosure: Future results can not be guaranteed. Please read the disclaimer page for more details.  ...

As the market for mortgage real estate investment trusts (mREITs) has lost some steam over the last couple of weeks, the investor day for Two Harbors Investment Corp (TWO) provided an ideal time to review the prospects for this company. The company acquires, owns and manages a portfolio of Agency and non-Agency residential mortgage-backed securities and related investments. The investment approach focuses on security selection and the relative value of various sectors within the mortgage market. Two Harbors currently has a total residential mortgage-backed securities (RMBS) portfolio of over $15B, providing for a significant hybrid mREIT that now has substantially reduced the expense ratio to 0.8%. Read the full article at Seeking Alpha. Disclosure: Long NLY. Please review the disclaimer for more details. 

After the close on Tuesday, InvenSense, Inc. (INVN) reported earnings that, combined with the replacement of the CEO, sent the stock down as much as 20% at one point. This once high flying maker of motion sensing technology continues to struggle with forecasting the actual market growth of its products. In previous quarters, the company spoke of a bright future interrupted by a chip shortage from Qualcomm (QCOM) limiting the ability of handset makers to utilize the motion sensing technology for 4G LTE phones. Now the Q2 2013 earnings ending in September slightly beat estimates, but the company guided towards a weak December quarter. While still guiding strong yearly growth of 35%, the market is clearly disappointed that the higher end 40% growth rate wasn't reached. Read the full article at Seeking Alpha. Disclosure: Long INVN and AAPL. Please review the disclaimer page for more details. 

Great pic from Yahoo! Finance on the market action the last few days. The bull market has definitely been knocked down.