Tuesday, December 31, 2013

Top 10 Stocks To Own Right Now

Deutsche Bank announced on Monday that it was maintaining a “Buy” rating on the Ohio-based tire manufacturer The Goodyear Tire & Rubber Company (GT), but went on to raise its price target for the company.

Rod Lache, an analyst with the firm, noted that he sees strength in the tire sector over the coming season. Lache went on to note that because Goodyear has shifted its focus onto “higher end” tires, the company should rake in higher revenues next quarter seeing as how Deutsche Bank’s current valuation model does not reflect this trend. Rod Lache reiterated a “Buy” rating on the stock and raised his price target from $23 to $29.

Top 10 Stocks To Own Right Now: Panthera Exploration Inc. (PNX.V)

Iron South Mining Corp., a natural resource company, engages in the acquisition and exploration of resource properties in the Americas. It primarily explores for iron ore, gold, silver, and copper deposits. The company holds interests in the Roy property covering 478 hectares located in the Walker Lane District of west central Nevada, the United States. It also has an option to earn a 100% interest in the Fierro iron ore project covering 74,796 hectares located in Rio Negro Province, Argentina. The company was formerly known as Panthera Exploration Inc. and changed its name to Iron South Mining Corp. in February 2012. Iron South Mining Corp. was incorporated in 2000 and is headquartered in Vancouver, Canada.

Top 10 Stocks To Own Right Now: Panasonic Appliances India Company Ltd (PANI.NS)

Panasonic Appliances India Company Limited, formerly Panasonic Home Appliances India Company Limited is an India-based company , engaged in the manufacturing and marketing of Electric Cooker under Lid Type and Jar Type besides Mixer Grinders of various models. The Company also exports both Cooker and Mixer Grinder to various countries. The Company is principally engaged in the business of Household Appliances. The Company has developed and established a business model which comprises of manufacture and sale of Electric Cooker and Mixer Grinder under Panasonic Brand and trading of Panasonic brand imported products viz., Microwave Oven and other kitchen/small appliances, Beauty care, and Health care/Personal care products.

Best Biotech Stocks For 2014: Team Inc.(TISI)

Team, Inc. provides specialty maintenance and construction services for maintaining high temperature and high pressure piping systems and vessels that are utilized in heavy industries. It offers inspection and assessment services, such as inspection and evaluation of piping, piping components, and equipment; field heat treating services, including electric resistance and gas-fired combustion; leak repair services comprising on-stream repairs of leaks in pipes, valves, flanges, and other parts of piping systems and related equipment; and fugitive volatile organic chemical emission leak detection services consisting of identification, monitoring, data management, and reporting. The company also provides hot tapping services, such as hot tapping, Line-stop, and Freeze-stop services; field machining services, including the use of portable machining equipment to repair or modify machinery, equipment, vessels, and piping systems, as well as flange facing, pipe cutting, line bori ng, journal turning, drilling, and milling services; and technical bolting services comprising the use of hydraulic or pneumatic equipment with bolt tightening techniques for leak-free connections, plant maintenance, and expansion projects, as well as bolt disassembly and hot bolting services. In addition, it offers field valve repair services consisting of on-site repairs to manual and control valves, and pressure and safety relief valves, as well as specialty valve actuator diagnostics and repair. The company markets its services to companies in a various heavy industries, which include the petrochemical, refining, power, pipeline, steel, pulp and paper, and shipbuilding industries, as well as to municipalities, original equipment manufacturers, distributors, and engineering and construction firms. It operates in the United States, Canada, Europe, and internationally. The company was founded in 1973 and is headquartered in Alvin, Texas.

Advisors' Opinion:
  • [By Monica Gerson]

    Team (NYSE: TISI) lowered its annual earnings outlook. Team shares tumbled 10.63% to $35.75 in the after-hours trading session.

    Synergetics USA (NASDAQ: SURG) reported its FQ4 earnings of $0.06 per share on revenue of $17.9 million. However, analysts were projecting earnings of $0.05 per share on revenue of $17 million. Synergetics USA shares dipped 11.82% to $4.40 in the after-hours trading session.

  • [By Ben Levisohn]

    Team Inc.�(TISI) has dropped 11% after the company missed its earnings forecast and lowered guidance.

    Monsanto�(MON) has dropped 2.2% to $103.15 after the agricultural-products company reported a loss of 47 cents a share, missing analyst forecasts for a loss of 43 cents, and said it would buy a firm that analyzes the weather.

Top 10 Stocks To Own Right Now: A-sonic Aerospace Limited (A53.SI)

A-Sonic Aerospace Limited, an investment holding company, engages in aerospace engineering and logistics businesses. It supplies aircraft systems and components to airlines and aviation maintenance repair organizations, as well as offers retrofit solutions and aircraft maintenance management services; and provides academic and technical education relating to logistics, transportation, and commerce to industrial and commercial enterprises. The company also engages in the purchase, sale, and lease of aircraft. In addition, it provides supply chain management services; logistic solutions, including international and domestic multi-modal transportation, freight forwarding, warehousing, distribution, and customs clearance; airport ground services for cargo, as well as specialized active and passive packaging solutions; and air cargo management services. Further, the company acts as an air cargo general sales agent for various international airlines. It operates in Asia, sub-con tinent India, the Americas, and Europe. The company is based in Singapore.

Top 10 Stocks To Own Right Now: qinetiq group ord gbp0(QQ.L)

QinetiQ Group plc provides technical support, training, test and evaluation, and know-how to customers in the defense, aerospace, and security markets primarily in the United Kingdom and North America. The company offers various services, such as test and evaluation of land, sea, and air equipment; technical and information services; electro-magnetic compatibility and environmental testing; network engineering and communications solutions; cyber operations; software solutions; systems engineering; facility management and range design; military, aviation, and cyber and software training; and aerospace engineering that include design, simulate, instrument, embody, and evaluate aircraft and equipment. Its products include OptaSense to gather information from linear assets; Zephyr, an unmanned air vehicle to support payloads for surveillance or communications; X-Net, a vehicle arresting system to bring vehicles to a safe non-lethal stop; Q-Net to protect tactical and lightly a rmored vehicles from rocket-propelled grenades. The company also provides military robotics comprising Dragon Runner, a small unmanned ground vehicle (UGV); Dragon Runner 10, a micro UGV; Rascal, a sensor-carrying small ground robot; TALON, a man-portable robot; MAARS, a modular ground robot system; and Rangemaster for operations running on diesel engine. QinetiQ Group plc is based in Farnborough, the United Kingdom.

Top 10 Stocks To Own Right Now: Southern Cross Goldfields Ltd(SXG.AX)

Southern Cross Goldfields Limited engages in the exploration and development of mineral properties primarily in Western Australia. The company has approximately 3,300 square kilometers of permits under license or agreements in the Central Yilgarn gold and nickel province. It holds interest in the Parker Range gold project located in Southern Cross; the Marda gold project located in Marda-Diemals greenstone Belt; and the Bullfinch North nickel project located in the Southern Cross greenstone belt. The company was incorporated in 2007 and is based in West Perth, Australia.

Top 10 Stocks To Own Right Now: Pro-Dex Inc.(PDEX)

Pro-Dex, Inc. engages in the development and manufacture of technology-based solutions. The company designs, develops, and manufactures powered surgical devices for the medical device and dental industries. It also provides fractional horsepower motors for aerospace, medical, and military applications; and motion control software and hardware products for industrial and scientific applications. In addition, the company offers dental products primarily to original equipment manufacturers and dental product distributors; and multi-axis motion controllers. It markets its products to hospitals, dental offices, medical engineering labs, commercial and military aircraft, scientific research facilities, and high tech manufacturing operations worldwide. Pro-Dex, Inc. was founded in 1978 and is headquartered in Irvine, California.

Top 10 Stocks To Own Right Now: Atikwa Minerals Corporation (ATK.V)

Atikwa Resources Inc. engages in the acquisition, exploration, development, and production of petroleum and natural gas properties in Western Canada. It has interests in the Windfall prospect, Porcupine Hills prospect, Bakken project, and Spearfish project located in southern Saskatchewan and Manitoba. The company was formerly known as Atikwa Minerals Corporation and changed its name to Atikwa Resources Inc. in November 2009. Atikwa Resources Inc. is based in Calgary, Canada.

Top 10 Stocks To Own Right Now: Akela Pharma Inc He Company] (AKL.TO)

Akela Pharma, Inc. operates as a specialty contract pharmaceutical formulation developer in the United States. It offers contract pharma services comprising formulation and process development of drug in tablets, capsules, multiparticulates, fast formulations, oral and topical liquids, powders for suspension/reconstitution, and semi-solid forms. The company also provides analytical services, which include research and development analytical testing and support for formulation development; analytical method development and phase-appropriate validation; quality control testing for API and raw materials release; and stability testing and ICH compliant stability storage. In addition, it offers drug delivery solutions, such as hot melt extrusion for amorphous dispersions, spray-drying for amorphous dispersions, controlled release dosage forms, liquid solutions (encapsulated and bottled), and novel dosage forms, as well as beads, granulation, and drug layering services. Further, the company�s contract services consist of handling of potent compounds; pharmaceutical patent litigation support services; GMP clinical and commercial manufacturing; clinical labeling and packaging; and IP validation and contestation consulting services. The company was formerly known as LAB International Inc. and changed its name to Akela Pharma, Inc. in June 2007. Akela Pharma, Inc. was founded in 1979 and is headquartered in Austin, Texas.

Top 10 Stocks To Own Right Now: iShares PHLX SOX Semiconductor Sector Index Fund (SOXX)

iShares S&P North American Technology-Semiconductors Index Fund (the Fund), formerly iShares S&P GSTI Semiconductor Index Fund, seeks investment results that correspond to the price and yield performance, before fees and expenses, as represented by the S&P North American Technology-Semiconductors Index. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index.

The Index has been developed as an equity benchmark for United States-traded semiconductor stocks. The Index includes companies that are producers of capital equipment or manufacturers of wafers and chips.

Monday, December 30, 2013

Can General Motors Head Higher After Recent Headlines?

With shares of General Motors (NYSE:GM) trading around $40, is GM an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

General Motors designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide. The company markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Opel, Holden, and Vauxhall brand names, as well as under the Alpheon, Jiefang, Baojun, and Wuling brand names. It sells cars and trucks to dealers for consumer retail sales as well as to fleet customers in daily rental car companies, commercial fleet customers, leasing companies, and governments.

General Motors is witnessing the changing of the guard in many aspects of its business. Mary Barra, the automaker's CEO-in-waiting, will succeed Dan Akerson in 2o14, while the U.S. Government no longer holds shares of GM stock. In China, the world's largest automobile market, GM will have a new president take over while watching Volkswagen (VLKAY.PK) likely become the sales leader among foreign automakers after GM's eight-year reign, Bloomberg reports.

Hot Blue Chip Companies To Invest In Right Now

T = Technicals on the Stock Chart Are Strong

General Motors stock has been in a range over the last couple of quarters. The stock is currently trading sideways and may need time to stabilize before heading higher. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, General Motors is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

GM

(Source: Thinkorswim)

Taking a look at the implied volatility (red) and implied volatility skew levels of General Motors options may help determine if investors are bullish, neutral, or bearish.

Implied Volatility (IV)

30-Day IV Percentile

90-Day IV Percentile

General Motors options

33.14%

80%

78%

What does this mean? This means that investors or traders are buying a very significant amount of call and put options contracts, as compared to the last 30 and 90 trading days.

Put IV Skew

Call IV Skew

January Options

Flat

Average

February Options

Flat

Average

As of today, there is an average demand from call buyers or sellers and low demand by put buyers or high demand by put sellers, all neutral to bullish over the next two months. To summarize, investors are buying a very significant amount of call and put option contracts and are leaning neutral to bullish over the next two months.

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on General Motors’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for General Motors look like and more importantly, how did the markets like these numbers?

2013 Q3

2013 Q2

2013 Q1

2012 Q4

Earnings Growth (Y-O-Y)

-49.44%

-16.67%

-3.33%

6.49%

Revenue Growth (Y-O-Y)

3.72%

3.88%

-2.32%

3.47%

Earnings Reaction

3.24%

-1.10%

3.01%

0.03%

General Motors has seen decreasing earnings and increasing revenue figures over the last four quarters. From these numbers, the markets have had mixed feelings about General Motors’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has General Motors stock done relative to its peers, Ford Motor (NYSE:F), Toyota Motor (NYSE:TM), Tesla Motors (NASDAQ:TSLA), and sector?

General Motors

Ford Motor

Toyota Motor

Tesla Motors

Sector

Year-to-Date Return

41.94%

18.96%

30.73%

352.10%

31.54%

General Motors has been a relative performance leader, year-to-date.

Conclusion

General Motors continues to change its business as it looks to entice companies and consumers with its new and improved vehicles. The company is witnessing the changing of the guard in many aspects of its business. The stock has been in a range over the last couple of quarters and is currently trading sideways. Over the last four quarters, earnings have been decreasing while revenues have been rising, which produced conflicting feelings among investors. Relative to its peers and sector, General Motors has been a relative year-to-date performance leader. Look for General Motors to OUTPERFORM.

10 Best Penny Stocks To Invest In 2014

It’s time for investors to downshift their expectations on O’Reilly Automotive (ORLY).

Bloomberg News

Heading into last night’s earnings report, O’Reilly had returned 50% this year including reinvested dividends, easily besting peers Autozone (AZO), which had returned 22%, Genuine Parts (GPC), which has returned 26%, and Advance Auto Parts (AAP), which had returned 38%,� thanks in large part to a 25% gain in the last month due to its purchase of General Parts International. Clearly, investors thought O’Reilly had something going for it its competitors did not.

They were wrong. O’Reilly beat earnings estimates by two penny’s but that included as much as a 9 cent gain thanks to its tax rate, while its same-store sales came in at 4.6%, below consensus of 5.4%. As a result, O’Reilly’s shares have plunged 7% to $124.93 today at 2:42 p.m.

10 Best Penny Stocks To Invest In 2014: Citizens South Banking Corporation(CSBC)

Citizens South Banking Corporation operates as the holding company for Citizens South Bank that provides various commercial banking services to local customers in the United States. The company offers a range of retail products, commercial banking services, and mortgage lending services. It provides retail deposit products, such as checking, savings, negotiable order of withdrawal, and money market accounts, as well as time deposits and individual retirement accounts. The company also offers commercial analysis deposit accounts, business checking accounts, and repurchase agreements for business customers. In addition, it provides various consumer and commercial loans, including business, real estate, residential, and consumer loans. Further, the company offers consumer and business credit cards, debit cards, commercial letters of credit, and safe deposit box rentals, as well as electronic funds transfer services, including automated clearing house and wire transfers. Addit ionally, it provides online banking, remote deposit capture, cash management, bank-by-phone capabilities, and ATM services. The company also acts as a broker in the sale of uninsured financial products. As of March 31, 2011, it operated through 21 branch offices located in North Carolina, South Carolina, and Georgia. The company was founded in 1904 and is headquartered in Gastonia, North Carolina.

10 Best Penny Stocks To Invest In 2014: Diana Shipping inc. (DSX)

Diana Shipping Inc. provides shipping transportation services. It transports dry bulk cargoes that include commodities, such as iron ore, coal, grain, and other materials along worldwide shipping routes. As of December 31, 2010, the company?s fleet consisted of 23 dry bulk carriers, including 14 Panamax, 1 Post-Panamax, and 8 Capesize dry bulk carriers with a combined carrying capacity of approximately 2.5 million deadweight tonnage. Its customers include national, regional, and international companies. The company was formerly known as Diana Shipping Investments Corp. and changed its name to Diana Shipping Inc. in February 2005. Diana Shipping Inc. was founded in 1999 and is based in Athens, Greece.

Advisors' Opinion:
  • [By Dan Newman]

    For example, when prices were high and companies, such as Diana Shipping� (NYSE: DSX  ) and�DryShips (NASDAQ: DRYS  ) , ordered more ships, these ships were finally completed a few years later when shipping prices had already cratered. Now, Diana's fleet is on average only 6.4 years old, while DryShips' fleet is on average 7.4 years old, when the typical life of a ship is 25 years. While these young fleets might be good as an investment in the future if global trade picks up, today's troubled eurozone and slowing China will leave these newer ships wanting for higher demand.

  • [By James E. Brumley]

    The recent strength from Sino-Global Shipping America, Ltd. (NASDAQ:SINO) and the now-renewed strength from Safe Bulkers, Inc. (NYSE:SB) would suggest those two stocks are among the very best ways to play the rebound currently unfurling in the shipping sector. And to be fair, both are fine companies in their own right. The top play in the dry goods maritime shipping arena, however, may well be Diana Shipping Inc. (NYSE:DSX). No, DSX isn't one of the fun and exciting small caps in the maritime shipping space. But, there's a lot to be said for size and stability, which SB and SINO can't offer.

  • [By Jake L'Ecuyer]

    Equities Trading UP
    Diana Shipping (NYSE: DSX) was up on Friday's session, gaining 9.71 percent to $12.22 after Morgan Stanley upgraded the whole dry bulk sector.

  • [By Jon C. Ogg]

    Dianna�Shipping Inc. (NYSE: DSX) was raised to Neutral from Underperform at Credit Suisse.

    Facebook Inc. (NASDAQ: FB) was started as Buy with a $50 fair value at Janney Capital.

Top Oil Stocks To Buy For 2014: New York Mortgage Trust Inc.(NYMT)

New York Mortgage Trust, Inc., together with its subsidiaries, operates as a real estate investment trust (REIT) in the United States. The company engages in acquiring, investing, financing, and managing mortgage-related assets. It primarily invests in agency residential adjustable-rate, hybrid adjustable-rate, and fixed-rate mortgage-backed securities (RMBS); non-Agency RMBS; prime adjustable-rate residential mortgage loans held in securitization trusts; commercial mortgage-backed securities; commercial mortgage loans; and other commercial real estate-related debt investments. The company has elected to be taxed as a REIT and will not be subject to federal income tax if it distributes at least 90% of its REIT taxable income to its stockholders. New York Mortgage Trust, Inc. was founded in 1989 and is headquartered in New York, New York.

Advisors' Opinion:
  • [By Amanda Alix]

    More mREITs stay the course, but two trim payouts
    Despite suffering many tumbles and bruises, several mREITs have announced that their dividends will be unchanged from the previous quarter. Several did so last week, and yesterday saw Hatteras Financial (NYSE: HTS  ) , an agency-only trust, keeping its own $0.70 per share�payout the same. Hybrid New York Mortgage Trust (NASDAQ: NYMT  ) also kept its dividend stable, at $0.27 per share, in line with its four most recent distributions.

  • [By Eric Volkman]

    Investors are being rewarded for putting their trust in New York Mortgage Trust (NASDAQ: NYMT  ) . The REIT has declared a common stock dividend for its current quarter of $0.27 per share, to be paid on July 25 to shareholders of record as of June 28. That amount matches each of the company's preceding four distributions, the most recent of which was doled out at the end of April. Before that, it paid $0.25 per share.

10 Best Penny Stocks To Invest In 2014: Harvard Bioscience Inc.(HBIO)

Harvard Bioscience, Inc. develops, manufactures, and markets apparatus and scientific instruments used in life science research in pharmaceutical and biotechnology companies, universities, and government laboratories in the United States and internationally. The company?s products target ADMET testing, and molecular biology and liquid handling application areas. Its ADMET testing products comprise absorption diffusion chambers that measure the absorption of a drug into the bloodstream; well equilibrium dialysis plates for serum protein binding assays; organ testing systems; infusion pumps for infusing liquids; behavioral products used in neuroscience, cardiology, psychological, and respiratory studies to evaluate the effects of situational stimuli, drugs, and nutritional infusions on motor and sensory, activity, and learning and test behavior; cell injection systems; ventilators; and electroporation products. The company also distributes various devices, instruments, and c onsumable items used in experiments involving cells, tissues, organs, and animals in the fields of proteomics, physiology, pharmacology, neuroscience, cell biology, molecular biology, and toxicology. It sells its ADMET testing products under the Harvard Apparatus, BTX, KD Scientific, Hugo Sachs Elektronik, Panlab, and Warner Instruments brands names. Its molecular biology and liquid handling products include molecular biology spectrophotometers, DNA/RNA/protein calculators, multi-well plate readers, amino acid analysis systems, liquid dispensers, gel electrophoresis systems, and consumables primarily consisting of pipettes, pipette tips, autoradiography films, gloves, thermal cycler accessories, and reagents. The company sells its products to researchers through catalogs, its Website, and distributors, as well as directly in the United States, the United Kingdom, Germany, France, Spain, and Canada. Harvard Bioscience, Inc. was founded in 1901 and is headquartered in Hollisto n, Massachusetts.

10 Best Penny Stocks To Invest In 2014: Independent Bank Corporation(IBCP)

Independent Bank Corporation operates as a holding company for the Independent Bank that provides various retail and commercial banking services in Michigan. The company offers various deposit products, including non-interest bearing demand deposits, time deposits, checking and savings accounts, and NOW accounts. It also provides commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services. The company, through its other subsidiaries, offers payment plans used by consumers to purchase vehicle service contracts and title insurance services, as well as provides investment and insurance services. As of May 2, 2011, it operated approximately 100 offices across Michigan?s Lower Peninsula. The company was founded in 1864 and is based in Ionia, Michigan.

10 Best Penny Stocks To Invest In 2014: China Grentech Corporation Limited(GRRF)

China GrenTech Corporation Limited, together with its subsidiaries, engages in the manufacture and sale of wireless coverage products and services in the People?s Republic of China. The company offers a range of wireless coverage products that include repeaters, trunk amplifiers, and base station amplifiers that support various 2G protocols, including GSM and CDMA, and 3G protocols comprising TD-SCDMA, WCDMA, and CDMA2000. It provides its wireless coverage products in indoor coverage areas, such as high-rise buildings, underground areas, and elevators; and outdoor coverage areas comprising highways, railways, subways, and tunnels. China GrenTech also offers design, installation of wireless coverage products, and project warranty services. In addition, it engages in the development, manufacture, and supply of RF parts and components that include transistors and diodes; and filters, duplexers, multi-frequency splitters, combiners and couplers, and antennae. The company was f ormerly known as Powercom Holdings Limited. China GrenTech Corporation Limited was founded in 1999 and is based in Shenzhen, the People?s Republic of China.

10 Best Penny Stocks To Invest In 2014: Paragon Shipping Inc.(PRGN)

Paragon Shipping Inc. provides shipping transportation services worldwide. The company engages in the ocean transportation of various drybulk cargoes and containers. Its fleet consists of 11 drybulk vessels with a total carrying capacity of 747,994 dwt. The company was founded in 2006 and is based in Voula, Greece.

Advisors' Opinion:
  • [By Roberto Pedone]

    Another under-$10 name shipping player that's starting to move within range of triggering a big breakout trade is Paragon Shipping (PRGN), which is engaged in transporting drybulk cargoes, including such commodities as iron ore, coal, grain and other materials along shipping routes worldwide. This stock has been on fire so far in 2013, with shares up sharply by 114%.

    If you take a look at the chart for Paragon Shipping, you'll notice that this stock just recently took out its 50-day moving average of $4.19 a share with strong upside volume. Shares of PRGN are showing relative strength today, despite the overall market weakness, which shows this stock is in strong demand at current levels. This move is now starting to push shares of PRGN within range of triggering a big breakout trade

    Market players should now look for long-biased trades in PRGN if it manages to break out above some near-term overhead resistance at $4.90 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 25,811 shares. If that breakout triggers soon, then PRGN will set up to re-test or possibly take out its 52-week high at $5.70 a share. If that level gets taken out with volume, then PRGN could easily tag its next major overhead resistance levels at $7 to $8.35 a share.

    Traders can look to buy PRGN off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $4.19 a share, or below its 200-day moving average at $3.74 a share. One can also buy PRGN off strength once it clears $4.90 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point. I would add to either position once PRGN takes out its 52-week high at $5.70 a share with strong upside volume flows.

10 Best Penny Stocks To Invest In 2014: Helios Advantage Income Fund Inc. (HAV)

Helios Advantage Income Fund, Inc. is a close ended fixed income mutual fund launched and managed by Brookfield Investment Management Inc. The fund invests in the fixed income markets of the United States. It invests a majority of its assets in below investment grade debt securities, which are bonds rated Ba1 or lower by Moody's Investors Service, Inc., BB+ or lower by Standard & Poor's Ratings Group. The fund benchmarks the performance of its portfolio against the Barclays Capital U.S. Corporate High Yield Index and the Barclays Capital Ba U.S. High Yield Index. It was formerly known as RMK Advantage Income Fund, Inc. Helios Advantage Income Fund, Inc. was formed on November 8, 2004 and is domiciled in the United States.

Advisors' Opinion:
  • [By Namitha Jagadeesh]

    Havas SA (HAV) lost 1.6 percent to 5.78 euros. Barclays Plc downgraded the French advertising company to equal weight, similar to neutral, from overweight, citing the need to ��ause for breath��after its strong performance over the past three months. Havas climbed 28 percent from a June 24 low through yesterday�� close.

10 Best Penny Stocks To Invest In 2014: Taiwan Greater China Fund(TFC)

Shelton Greater China Fund is a close ended equity mutual fund launched and managed by CCM Partners, LP. The fund is co-managed by Nikko Asset Management Co. Ltd. It primarily invests in public equity markets of Taiwan. The fund seeks to invest across diversified sectors. It benchmarks the performance of its portfolio against the Taiwan China Strategy Index, TAIEX, and MSCI Taiwan Index. The fund was formerly known as Taiwan Greater China Fund. Shelton Greater China Fund was formed in July 1988 and is domiciled in the United States.

10 Best Penny Stocks To Invest In 2014: Flexsteel Industries Inc.(FLXS)

Flexsteel Industries, Inc., together with its subsidiaries, engages in the manufacture, import, and market of residential and commercial upholstered and wooden furniture products in the United States. Its upholstered and wooden furniture products include sofas, loveseats, chairs, reclining and rocker-reclining chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, and bedroom furniture. The company distributes its products for use in home, office, hotel, and other commercial applications through its sales force and various independent representatives, as well as to various national and regional chains. Flexsteel Industries, Inc. was founded in 1929 and is based in Dubuque, Iowa.

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 Flexsteel Industries (Nasdaq: FLXS  ) , whose recent revenue and earnings are plotted below.

  • [By Ben Levisohn]

    Shares of La-Z-Boy have gained 11% to $27.02 at 1:54 p.m. today. Its performance is also giving other furniture stocks a boost. Flexsteel (FLXS) has risen 1% to $27.60, Hooker Furniture (HOFT) has jumped 1.6% to $17.12 and Ethan Allen International (ETH) has advanced 1.2% to $29.20. Haverty Furniture (HVT) has dipped 0.3% to $27.87.

  • [By Dividends4Life]

    Memberships and Peers: LEG is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers��Index and a Dividend Champion. The company's peer group includes: Hooker Furniture Corp. (HOFT) with a 2.4% yield, Flexsteel Industries Inc. (FLXS) with a 2.7% yield and Ethan Allen Interiors Inc. (ETH) with a 1.4% yield.

Sunday, December 29, 2013

Amazon.com, Inc. (AMZN) Q3 Earnings Preview: What To Expect?

Online retail giant Amazon.com, Inc. (NASDAQ: AMZN) will report its third quarter financial results on Oct.24 and hold a conference call on the same day at 2:00 p.m. PT/5:00 p.m. ET to discuss the operating performance.

Wall Street expects Amazon to report a loss of 9 cents a share, according to analysts polled by Thomson Reuters. In the same period last year, the company reported a loss of 60 cents a share.

Amazon's results have managed to top Street view only once in the past four quarters while missing them by a wide margin on three occasions. Analysts are more pessimistic on Amazon's earnings in the last three months, when the consensus estimate was a profit of 10 cents.

Quarterly revenue is expected to rise 21.4 percent to $16.77 billion from $13.81 billion in the same quarter last year. Amazon sees third quarter net sales between $15.45 billion and $17.15 billion, or to grow between 12 and 24 percent over the third quarter of 2012. The market could look at the contributions of North America and International markets.

Amazon is sacrificing near-term profitability to drive long-term growth as it is investing heavily in Kindle tablets, TV content, Video library and AWS. These heavy investments are weighing on gross margins resulting in losses. Amazon expects third-quarter operating loss to be between $440 million and $65 million, compared to $28 million in the third quarter of 2012.

Top 5 Bank Stocks To Own Right Now

The company recently began shipping of its third generation of Kindle Fire tablets dubbed the Kindle Fire HDX, which could be available for as low as $229. The company also announced the Kindle Fire HD for $139.

During the quarter, Amazon introduced Kindle MatchBook, a new benefit that gives customers the option to buy—for $2.99, $1.99, $0.99, or free—the Kindle edition of print books they have purchased new from Amazon. It also unveiled Kindle Paper! white—the 6th generation of Kindle eReader.

The Kindle shipping timing difference versus last year, with both the 7" & 8.9" versions pushed into the fourth quarter this year, could be mildly supportive to margins, at the expense of revenue growth.

"We would note that the low cost approach (Jeff Bezos meetings with the press) taken to introducing the new Kindle line would suggest a conservative approach to spending, potentially indicative of operating income pressures," UBS analyst Eric Sheridan said in a note to clients.

Meanwhile, increased fee revenues from 3P sellers should be supportive of gross margin expansion as Amazon raised 3P seller fees about 6 percent in the first quarter.

Investors could watch paid unit growth trends, which have been weakening as it has decelerated in each of the previous five quarters. That said, comps are approximately 400bps easier this quarter relative to last. This statistic has become of increasing importance given Amazon's increasing 3P mix and its impact on both reported revenue growth and gross profit margins.

"For Q3 2013, we estimate paid units grew slightly above the 29% growth seen in Q2 2013. The comparison continues to ease as we move into Q4 (32% paid unit growth posted in Q4 2012)," Sheridan noted.

There is potential for this number to reaccelerate given the combination of Amazon's recent Kindle store launches (China, Brazil, Mexico), 3P business launch in India, Amazon Fresh launch in Los Angeles, and the aforementioned easier compare.

A few additional items that may be brought up on the call or mentioned in some form include early progress related to the company's global expansion of the Kindle Appstore; early traction with 3P sellers in India; update around China strategy (Kindle, partnerships).

For the second quarter ended June 30, 2013, the Seattle, Washington-based company reported a net loss of $7 million or 2 cents a share, compared to net income of $7 million or 1 cent a share for the year-ago q! uarter. N! et sales for the second quarter rose 22 percent to $15.70 billion.

Amazon has traded in a mixed manner following its last two third quarter earnings announcements, increasing 7 percent and declining 13 percent, respectively. That said, over a five year span, the average price change post third quarter results is a 5 percent gain.

Shares of AMZN have gained 8 percent since the last quarterly report and have climbed 41 percent in the last year. They have traded between $218.18 and $331.89 during the past 52-weeks.

Friday, December 27, 2013

IPO demand jumps as three more hit the market

The Empire State Building may not be the world's tallest anymore, but it still helped set a new record Wednesday.

Following the initial public offerings of three companies, including the operator of the Empire State Building, the IPO market has officially shaken off the malaise of the financial crisis of 2007 and 2008.

Shares of retailer Burlington Stores, real estate firm ReMax and Empire State Realty Trust saw their initial public offerings start trading Wednesday, and they gained 47%, 23% and 1%, respectively, on their first days.

But more important, with the IPOs of these three companies, there have been 155 companies selling shares to the public for the first time this year. That's a noteworthy accomplishment in that it's the first sign of the moribund IPO market coming back to life since the financial crisis all but killed interest in deals.

Top 5 Performing Companies To Invest In Right Now

And that's not even including the much-anticipated IPO of online message service Twitter, expected to file its prospectus with the public in weeks, if not days.

TWITTER IPO: Social media giant poised to make IPO filing public

At 155, the number of IPOs this year is up 52% from the same point last year, says Renaissance Capital.

There haven't been this many companies going public in a year since 2007, when there were 213, just before the financial crisis decimated the plans of companies to sell stock to the public.

The amount of money raised by companies this year so far, $33.3 billion, is down 6.2% from this point last year, Renaissance says. But that's actually a healthy sign, as the IPO market is reopening to smaller companies looking to grow and expand, the lifeblood of a vibrant IPO market. For years, investors shied away from smaller companies to focus on large, old and more established companies.

Thursday, December 26, 2013

To Cheat Death, Music Industry Should Look to Spotify, Pandora, Not Clear Channel

NEW YORK (TheStreet) -- I had to laugh when I saw Clear Channel (CCMO) Chairman and CEO Bob Pittman take to CNBC last week to, kind of, sort of, explain his company's partnership with Warner Music Group.

It's a bit difficult to understand what some are calling a "revenue sharing" agreement when the parties refuse to disclose financial details. According to several reports, Warner will receive a share of Clear Channel's broadcast radio advertising dollars plus special promotional opportunities.

For example, The Wall Street Journal claims Warner "will effectively reap more per song played on IHeartRadio's custom radio service than it does from internet radio giant Pandora (P)." Under the deal, Warner will also receive special treatment through Clear Channel promotional programs: One such program that Clear Channel is creating exclusively for Warner Music is an "enhanced" version of its "artist integration" initiative, which advertises emerging artists on the air at Clear Channel's expense. Clear Channel offers other labels such promotions for just several weeks surrounding a new release, but for Warner Music's artists, the promotions will run up to 15 weeks.

This brings up good questions, but few answers from the Neanderthals involved. Here's my take: No meaningful amount of cash is changing hands. Clear Channel is paying Warner a nominal amount of money per spin or play, just enough to make Pandora look bad and to shift focus from the fact that broadcast radio doesn't pay a performance royalty. CNBC's Jon Fortt made an important query on Twitter shortly after Clear Channel and Warner announced the hookup: How is this not institutionalized pay to play? Someone explain this to me .... #Clearchannel #warner http://t.co/SULu5ThyvG— Jon Fortt (@jonfortt) September 12, 2013 When you combine that question with this quote from Warner CEO Stephen Cooper, via a Ryan Faughnder article in the Los Angeles Times, things get even more confusing, if not downright shady: This is, in a very well organized and thoughtful fashion, marrying Warner's content with Clear Channel's massive distribution capabilities. What that means to our artists is that we'll be able to capitalize by exposing our artists to hundreds of millions of users. We are very confident that that exposure will help drive Clear Channel's business and the success of our artists and music. So how is this any different from what radio has been doing for labels and artists since Todd Storz invented the Top 40 format? Until Clear Channel does a deal with every label under the sun -- using the same terms -- how is this anything but a modern-day version of payola? While it doesn't sound like Warner will pay Clear Channel to play certain songs, it will, apparently, receive preferential treatment from the world's largest radio company. I don't know enough about this deal -- because they haven't told us much -- to take this past the speculative stage. But it sure smells like two companies who let the world pass them by taking a step back in an attempt to preserve old ways of doing business.

That said, the underlying current here -- as with the deal Apple (AAPL) shoved down the indies' throats -- holds out hope that all of this (not-so-new) promotion will prompt listeners to buy music again. Total pipe dream. Physical sales -- whether CDs or downloads -- are dead. And no amount of "promotion" or royalty workarounds from Clear Channel, Apple or any other giant can or will change that.

Simply put, we're watching the music industry -- and, sadly, not just the major labels -- put itself in a position to get screwed again.

The first time around it was probably unavoidable. Executives couldn't deal with Steve Jobs, who effectively killed the notion of the record album in favor of an a la carte, on-demand model at $0.99 a pop. As Apple sees that dying, it wants to keep the model alive if it can. And unimaginative record executives can't come up with any ideas beyond putting their faith in Apple. But Apple wins either way as it pumps up its mobile advertising business by shortchanging labels and, worse yet, artists.

The music industrial complex has so little vision, it's not only allowing Apple to dictate its fate, it's placing its destiny in the hands of debt-ridden, late-to-the-party Clear Channel. Music critic Bob Lefsetz said it best last month in Variety: Every week the antiquated record industry trumpets its sales figures and the even more ancient media industry repeats them. And to say they're unimpressive is to say you took the family goat to prom. Lefstz points to Imagine Dragons, a band selling about a paltry 25,000 records a week, putting it in Billboard's top ten: Have people just given up listening to music? No! It's just that the industry keeps pointing people to lame metrics. On Spotify, the supposedly rip-off system with no traction, Imagine Dragons' "Radioactive" has been spun 122,988,750 times. Put that number in the paper, it'll wow people! It's almost unfathomable -- it's got too many commas for most people to be able to interpret. And the band has another track at over 50 million and two in the 30 million play range. These numbers are spectacular! Bingo. Sweetheart deals between remnants of the once-mighty music industrial complex are absolutely not the answer. The idea that you can get 850 Clear Channel radio stations nobody gives a damn about anymore to drive anything -- streams on iHeart Radio, downloads, CD sales, whatever -- is absolutely absurd. Warner and the rest of the industry should tell Clear Channel to "share" its "revenue" with the entities that carry its debt. Then they should embrace Spotify, Pandora and the rest of the Internet radio pioneers, not desperate knock-offs like the one Pittman hastily conceived at Clear Channel. In a sentence and a closing paragraph, Lefsetz puts it all too rest: It's not whether someone buys it but whether they play it. ... Right now, these Spotify numbers are real. And important. And as soon as we stop vilifying these streaming services and start trumpeting their metrics, the sooner the rest of the world will take music seriously, the sooner artists will realize that there's a ton of money in music and it's worth it to take the risk as opposed to play the game because you can go straight to your audience and people are hungry for something new and different. Follow @rocco_thestreet --Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is a columnist and TheStreet's Director of Social Media. Pendola makes frequent appearances on national television networks such as CNN and CNBC as well as TheStreet TV. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.

Sunday, December 22, 2013

Dunkin' Brands Expanding in Texas

Two months ago, Dunkin' Brands (NASDAQ: DNKN  ) revealed plans to develop some three dozen Dunkin' Donuts shops "stretching from Salt Lake City to Denver to El Paso over the next several years," beginning in El Paso. Now it seems the company's going to shift the effort even farther east.

On Wednesday, Dunkin' announced it has signed a multi-unit store development agreement with existing franchisee New York Donuts Group to open eight Dunkin' Donut restaurants and one Dunkin' Donuts/Baskin-Robbins combination location in Houston. The first restaurant is planned to open in 2014, and the rest of the shops should be up and running by 2020.

5 Best Canadian Stocks To Invest In 2014

Dunkin' isn't stopping there, either. In the same press release in which it announced the New York Donuts Group franchise expansion, Dunkin' took the opportunity to invite prospective partners to contact it to open other locations throughout Texas, including in Beaumont, Rio Grande Valley, and Victoria. Additionally, the company says it's looking for partners to help develop Baskin-Robbins locations in Houston and Austin.

link

Saturday, December 21, 2013

Facebook's New Direction?

The following video is from Friday's Investor Beat, in which host Chris Hill, and analysts James Early and Matt Koppenheffer dissect the hardest-hitting investing stories of the day.

According to reports, Facebook is in talks to buy navigation app Waze for $1 billion. Waze provides crowd-sourced information on traffic conditions, police presence, and car accidents. Does the deal make sense for Facebook? What would the deal mean for investors? In this installment of Investor Beat, our analysts discuss the possible deal and take stock in the future of Facebook, as well as discussing the four biggest movers on Friday's market, and taking a look at two stocks they have on their radar this coming week.

After the world's most-hyped IPO turned out to be a dud, many investors don't even want to think about shares of Facebook. But there are things every investor needs to know about this revolutionary company. The Motley Fool's newest premium research report shows that there's a lot more to Facebook than meets the eye. Read up on whether there is anything to "like" about it today to determine if Facebook deserves a place in your portfolio. Access your report by clicking here.

Hot Blue Chip Stocks To Own Right Now

Friday, December 20, 2013

4 Under-$10 Stocks to Trade for Breakouts

DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.

>>4 Big Stocks on Traders' Radars

Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.

Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.

>>5 Stocks With Big Insider Buying

With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.

Biolase

Biolase (BIOL) is a medical technology company that develops, manufactures and markets laser systems for dental and medical applications. This stock closed up 2.4% to $2.11 in Thursday's trading session.

Thursday's Range: $2.04-$2.11

52-Week Range: $1.15-$5.98

Thursday's Volume: 376,000

Three-Month Average Volume: 320,703

>>4 Stocks Triggering Breakouts on Unusual Volume

From a technical perspective, BIOL spiked modestly higher here right above its 50-day moving average of $1.83 with above-average volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $1.47 to its intraday high of $2.11. During that move, shares of BIOL have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BIOL within range of triggering a big breakout trade. That trade will hit if BIOL manages to take out Thursday's high of $2.11, and then once it clears some more key overhead resistance levels at $2.25 to $2.50 with high volume.

Traders should now look for long-biased trades in BIOL as long as it's trending above its 50-day at $1.83 and then once it sustains a move or close above those breakout levels with volume that hits near or above 320,703 shares. If that breakout hits soon, then BIOL will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $3.11 to $3.50.

QuickLogic

QuickLogic (QUIK) develops and markets low-power customizable semiconductor solutions that enable customers to add new features, extend battery life and improve the visual experience with their mobile, consumer and enterprise products. This stock closed up 3.9% to $3.66 in Thursday's trading session.

Thursday's Range: $3.47-$3.69

52-Week Range: $2.01-$4.17

Thursday's Volume: 197,000

Three-Month Average Volume: 360,284

>>5 Big Trades for Post-Taper Gains

From a technical perspective, QUIK spiked sharply higher here right above its 50-day moving average of $3.40 with lighter-than-average volume. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $2.91 to its recent high of $3.70. During that move, shares of QUIK have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of QUIK within range of triggering a near-term breakout trade. That trade will hit if QUIK manages to take some near-term overhead resistance at $3.70 with high volume.

Traders should now look for long-biased trades in QUIK as long as it's trending above its 50-day at $3.44 or above more near-term support at $3.33 and then once it sustains a move or close above $3.70 with volume that hits near or above 360,284 shares. If that breakout triggers soon, then QUIK will set up to re-test or possibly take out its 52-week high at $4.17. Any high-volume move above $4.17 will then give QUIK a chance to tag its next major overhead resistance level at $4.64.

Thomas Properties Group

Thomas Properties Group (TPGI) is a full-service real estate company that owns, acquires, develops and manages mainly office, as well as mixed-use and residential properties. This stock closed up 1.7% to $6.85 in Thursday's trading session.

Thursday's Range: $6.67-$6.90

52-Week Range: $4.99-$7.16

Thursday's Volume: 362,000

Three-Month Average Volume: 79,734

>>5 Hated Earnings Stocks You Should Love

From a technical perspective, shares of TPGI trended modestly higher here back above its 50-day moving average of $6.75 with above-average volume. This stock recently formed a double bottom chart pattern at $6.42 to $6.44. Following that bottom, shares of TPGI have now spiked higher back above its 50-day and it's quickly moving within range of triggering a big breakout trade. That trade will hit if TPGI manages to take out some near-term overhead resistance levels at $6.95 to its 52-week high at $7.16 with high volume.

Traders should now look for long-biased trades in TPGI as long as it's trending above some key near-term support at $6.42 and then once it sustains a move or close above those breakout levels with volume that hits near or above 79,734 shares. If that breakout hits soon, then TPGI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $10 to $11.

Progenics Pharmaceuticals

Progenics Pharmaceuticals (PGNX) develops and commercializes therapeutics for patients suffering from cancer and related conditions. This stock closed up 4.6% to $4.93 in Thursday's trading session.

Thursday's Range: $4.85-$4.96

52-Week Range: $2.53-$6.47

Thursday's Volume: 1.08 million

Three-Month Average Volume: 585,081

>>5 Stocks Under $10 Set to Soar

From a technical perspective, PGNX gapped sharply higher here back above its 200-day moving average of $4.73 with heavy upside volume. This move is quickly pushing shares of PGNX within range of triggering a big breakout trade. That trade will hit if PGNX manages to take out Thursday's high of $4.96 to some more near-term overhead resistance at $5.29 with high volume.

Traders should now look for long-biased trades in PGNX as long as it's trending above some near-term support at $4.50 or above its 50-day at $4.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 585,081 shares. If that breakout hits soon, then PGNX will set up to re-test or possibly take out its next major overhead resistance levels at $6.29 to its 52-week high at $6.47. Any high-volume move above those levels will then give PGNX a chance to re-fill some of its previous gap down zone from July of 2012 that started at $11.

To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:



>>3 Hot Stocks to Trade (or Not)



>>5 Cash-Rich Stocks That Could Pay Triple the Gains in 2014



>>4 Stocks Rising on Unusual Volume

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.


Wednesday, December 18, 2013

FedEx Profit Miss Doesn’t Mean FDX Stock Is Off Course

Twitter Logo LinkedIn Logo Google Plus Logo RSS Logo Dan Burrows Popular Posts: The Top 10 S&P 500 Dividend Stocks for December4 Best Medical Marijuana Stocks to Buy NowMergers and Acquisitions — The 10 Biggest Deals of 2013 Recent Posts: FedEx Profit Miss Doesn’t Mean FDX Stock Is Off Course Buy Icahn Enterprises to Play Apple Stock with Less Risk The 3 Most Exciting Stocks of 2013 View All Posts

FedEx (FDX) ships so much stuff for so many industries in so many countries that the company (and to an extent, FDX stock itself) is rightly seen as a bellwether for the global economy.

FedEx-fdx-stockUnfortunately, when it comes to telling us what’s going on in the world, quarterly results at FedEx are stuck on repeat.

For a long time now, the message from FDX has been the same: Global economic growth is uneven and sluggish. At best.

FedEx has been dealing with the low-demand landscape through cost cuts and price hikes — and, for the most part, it has done admirably well.

However, with more shippers foregoing FedEx’s premium air-shipping services (they’re literally opting to take the slow boat from China), FDX has had little choice but to take planes out of service and raise some rates.

The result is that management has gained enough credibility in navigating sluggish global growth that even the latest disappointing quarterly report didn’t slam FDX stock.

FedEx: A Stock That Delivers

FedEx earnings for the fiscal second quarter actually missed Wall Street’s estimate by a fairly wide margin. Although FDX earned $500 million, or $1.57 a share, compared with $438 million, or $1.39, in last year’s second quarter, EPS missed analysts’ average forecast by 7 cents.

Slower volume expansion in the ground shipping business was likely to blame, even as last year’s Hurricane Sandy made for easier comparisons.

FedEx stock dived at the open, but soon recovered. And well that it should. The market knows that global growth stinks and that’s going to continue to weigh on FedEx — and cause some volatility for FDX stock — for a while. However, more important is how FedEx and its cost structure is positioned for an eventual pickup in growth. And on that count, management has indeed done its job, setting up FDX stock for outperformance over the longer term.

FedEx’s operating margin — an indicator of cost control — rose significantly for the quarter. And in more evidence that FDX is on the right track, FedEx raised its full-year outlook. Once the market digested that news, FDX stock was essentially unchanged in midday trading.

As we’ve noted before, FedEx management is doing a good job guiding FDX through a prolonged period of anemic global growth. Eventually, you figure Europe, Asia and emerging markets will start to pick up. (We've already seen some improvement in Europe.)

Add in the benefits of a multiyear cost-cutting program and FedEx share repurchases, and FDX stock should continue to deliver market-beating returns in the long run.

As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.

Tuesday, December 17, 2013

Oracle Corporation (NYSE:ORCL) Q2 Earnings Preview: What To Expect?

Oracle Corporation (NYSE:ORCL) will announce its second quarter fiscal year 2014 results on Dec. 18, after the close of the market. Oracle will host a conference call and live webcast at 2:00 p.m. Pacific Time to discuss the financial results.

Redwood City, California-based Oracle is one of the world's largest business-software companies. It provides database, middleware, business applications software, and engineered software/hardware systems that are used by enterprises and public organizations of all sizes around the world.

Wall Street expects the database software giant to earn 67 cents a share, according to analysts polled by Thomson Reuters. The consensus estimate implies an increase of 4.7 percent from 64 cents a share in the same quarter last year.

[Related -EMC Corporation (EMC): Are You Ready For The Next Internet Boom?]

For the second quarter, Oracle sees non-GAAP EPS between 65 and 70 cents in constant dollars, and 64 to 69 cents in reported dollars. GAAP EPS is expected to be 51 to 56 cents in constant dollars, and 50 to 55 cents in reported dollars. The company's earnings have managed to beat Street view twice in the past four quarters. Over the past 90 consensus estimate has dropped by 2 cents from 69 cents.

Quarterly revenue is expected to grow 0.9 percent to $9.19 billion from $9.11 billion in the corresponding quarter a year-ago. In the past four quarters, Oracle's average revenue growth came was 1 percent. For the second quarter, Oracle sees total revenue growth on both GAAP and non-GAAP basis to range from 1 to 4 percent in constant dollars and negative 1 to positive 2 percent in U.S. dollars.

[Related -Oracle Corporation (ORCL): Is Larry Ellison Being Overpaid?]

BMO Capital Markets analyst Joel Fishbein, Jr. expects to see slight revenue upside to the Street's consensus and 2-3 cents in upside to the consensus EPS estimates.

Investors will examine software sales. In last year's second quarter, new license in cloud revenue increa! sed 18 percent in constant currency. So, this year comparison could be tough. The company expects new software license and cloud subscription revenue growth in the range from negative 4 to positive 6 percent in constant currency and negative 6 to positive 4 percent in reported dollars.

The Street should also look at the legacy hardware segment, which has been struggling as Oracle continues to transition away from select low-margin product lines sold by Sun before the merger. Hardware revenues have either missed or come in near the low-end of guidance's range in most of the previous quarters.

Oracle sees second-quarter hardware product revenue ranging from negative 9 to positive 1 percent in constant dollars and negative 11 percent to negative 1 percent in reported dollars. Further, the mix of hardware and software is closely watched as it directly supports the margin profile.

Meanwhile, Oracle is facing a secular change in the industry, which is moving towards cloud-based systems from costlier infrastructure. Macro remains one of the biggest overhangs.

The Street would look for updates in cloud strategy and how the recent cloud-related deals such as Eloqua, Nimbula are contributing to the topline. With respect to cloud, Oracle had a strong first quarter. ORCL really started to hit stride, with great wins at A&A, LinkedIn, SIRIUS XM Radio, Telus, Barclays Bank. It also released its Sales Automation Release 7.

The market may want additional color on improvement in sales execution and favorable impact from the recent partnerships with Microsoft, Salesforce.com, and NetSuite. Comments on attach rates and renewal rates should be watched while trends over software updates and product support are expected to continue to power earnings and cash flow.

Further, the demand for new products (especially 12c) is closely monitored, specifcally Oracle's 12.1c version of its core database on an M-series Sun server with a full 32TB of DRAM. This database system will have enough in-! memory ca! pacity to handle unusually large workloads, potentially including the SAP ERP systems of many enterprises.

Investors may also focus on an announcement over shareholder returns. Oracle ended last quarter with approximately $39.1 billion in cash and short-term investments, or roughly $8.37 per share. Oracle repurchased 7 percent of its shares outstanding in fiscal 2013 ($11 billion in share repurchases) versus 4 percent in fiscal 2012 ($6 billion in share repurchases).

At the fiscal year-end quarter, Oracle announced an additional $12 billion under its existing share repurchase program in future quarters and announced a quarterly cash dividend of.12 cents a share of outstanding common stock, up 100 percent from previous quarterly dividend of 6 cents.

The 48 cents a share annual dividend at the current share price implies a 1.6 percent dividend yield, which is still below that of its peers, and one would not be surprised to see continued increases over time.

Last quarter (ended Aug. 31), Oracle repurchased 92.8 million shares for $2.968 billion or approximately $32 per share. The company ended the period with $11.1 billion remaining under its share repurchase program.

For the remainder of the year, Fishbein assumes the company will repurchase $7.5 billion of stock; however, given management's recent propensity to return cash to shareholders both through buybacks and dividends, this could prove conservative.

The outlook for the third quarter should hold the key along with recovery in hardware product revenues in fiscal 2014. Some further margin improvement and an increase in buy-back activity should bring investor confidence back.

Since reporting its first quarter results on Sept.18, the stock has fell 2 percent and dropped 4 percent this year. The stock, which trades 10.4 times its forward earnings, has traded between $29.86 and $36.43 during the past 52-weeks.

Monday, December 16, 2013

Should You Pay Extra to Protect Holiday Shipments?

Millions of holiday packages are delivered in the final days leading up to Christmas. FedEx expected to handle 20 million packages on December 16 alone, and UPS planned to deliver nearly 29 million packages on December 17. The U.S. Postal Service expected its busiest day for shipments to be December 19.

SEE ALSO: How to Get Free Shipping on Online Holiday Purchases

With so many packages being sent, you want to make sure that anything you send arrives safely. The question is whether you should pay extra to do so.

FedEx, UPS and the U.S. Postal Service do assume liability for loss or damage to packages they ship up to a certain limit at no additional charge. There's really no reason to purchase extra protection if the value of the gifts you are shipping falls below those liability limits. But if you want more protection for gifts that exceed those limits, you'll have to pay for it. Here's what you need to know about the protection your packages will receive from the major shippers, plus steps you should take to avoid having to file a claim for damaged, lost or stolen items.

FedEx. This shipping company limits its liability for U.S. package delivery loss or damage to $100, unless you pay extra to declare a higher value. FedEx charges 85 cents per additional $100 of value (with a minimum charge of $2.55). Paying extra does not provide insurance coverage. Rather, declaring the value of a package establishes FedEx's maximum liability, and it's up to you to prove actual damages. FedEx also limits the maximum declared value to $1,000 for several items including artwork, antiques, jewelry and glassware. See the FedEx terms for declared value and limits of liability.

UPS. Packages are automatically protected against loss or damage up to $100, but UPS states that it is not liable for packages that are improperly packed. If you ship something worth more than $100, you can pay extra – a minimum of $2.55 in 2013, going up to a $2.70 minimum in 2014 – to declare a higher value for the contents. This does not provide insurance coverage, but rather establishes the maximum liability UPS is willing to assume and gives you more recourse when filing a claim, says Natalie Black, public relations manager at UPS. See the UPS Declared Value Q&A for more information.

USPS. At no extra charge, the U.S. Postal Service provides $50 of insurance for Priority Mail service shipments and $100 of insurance for Priority Mail Express service. Additional insurance coverage up to $5,000 can be purchased starting at $1.95 (price based on value). Opting for registered mail allows for the purchase of additional insurance coverage of up to $25,000.

Protect your packages

Pack and label properly. Use a strong (preferably new) box and at least two inches of packing material around your item. Use heavy-duty packing tape to seal your package. Label packages as "fragile" if they need extra care. The USPS recommends printing addresses (both yours and the recipient's) in all capital letters.

Top Oil Companies To Own In Right Now

Let the recipient know to expect a package. As much as you might want to surprise friends and family with holiday gifts, it's better to let your recipients know that you are shipping something to them. That way you can find out whether to send it to their home or business address or to one of the shipping company's locations, where packages can be picked up to avoid having them sit on a porch where they can be stolen. FedEx has a free service called Delivery Manager that allows you to provide specific delivery instructions, such as "deliver package to back door." With UPS My Choice, you can tell a delivery driver where to leave a package at no extra charge.

Require a signature for delivery. You can pay about $2 to $3 extra to require that a recipient sign for a package to receive it. This ensures that your shipment won't be left on the doorstep when no one is there to receive it. If no one is around to sign for a package, a note typically is left stating when the shipping company will attempt to deliver it again or providing a number that can be called to arrange to pick up the package.

Buy gifts with a credit card. Several credit cards offer purchase protection that covers items that are damaged due to shipping. Check with your card issuer. LowCards.com CEO Bill Hardekopf says that these policies typically state that a product you purchase with your credit card must be in working condition when you receive it, or it will be replaced. This feature also can provide theft protection (for an extra charge) for up to 90 days from the time of purchase, he says.



Sunday, December 15, 2013

Twitter, News Corp, Sotheby’s are stocks to watch

Getty Images Twitter shares are expected to see active trading in Monday's session.

SAN FRANCISCO (MarketWatch) — Among the companies whose shares are expected to see active trade in Monday's session are Twitter Inc., News Corp, and Sotheby's.

After skyrocketing more than 70% on its market debut, Twitter (TWTR)  gave up 7.2% on Friday, its second day of trading, drawing even more comparisons with Facebook Inc. (FB) . Like Twitter, Facebook's initial public offering in May 2012 had been the marquee IPO of the year. But after a first day pop, the stock failed to live up to the hype and traded below its IPO price of $38 until earlier this year when investors saw visible proof that the company's monetization effort was bearing fruit

Twitter faces much of the same obstacles in convincing skeptics that it has a viable product in its microblogging service, and its key task will be to demonstrate that it can continue to attract enough active users to continue growing its revenue.

Click to Play Barron's Buzz: Protect your portfolio

Long-term care insurance has gotten a bad rap. Plus, how fast is your online broker? Photo: Getty Images

"Twitter is likely in the early innings of its growth. We believe that the majority of the world's 2.4 billion Internet users have great potential to find something or someone on Twitter that they are interested in," Michael Pachter, an analyst at Wedbush, said in a report.

He initiated coverage of Twitter's with a neutral rating and a price target of $37.

On the earnings front, News Corp (NWSA)  is expected to report fiscal first-quarter earnings of 5 cents a share, according to a consensus survey by FactSet. In June, the media company separated its entertainment arm to operate as 21st Century Fox Inc. (FOXA)  while the publishing business retained the News Corp name. News Corp owns The Wall Street Journal and MarketWatch, the publisher of this report.

Sotheby's (BID)  is projected to report a loss of 47 cents a share in the third quarter.

Assured Guaranty Ltd. (AGO)  is forecast to post third-quarter earnings of 63 cents a share.

Thursday, December 12, 2013

Obamacare Website Chews Up $1 Billion in Tax Dollars

The Government Accountability Office (GAO) has been touting a "modest" $394 million price tag for the flailing Obamacare website, but the truth is that the Obama administration has awarded contracts totaling over $1 billion in U.S. taxpayer dollars, a Bloomberg Government Analysis (BGOV) found.

The GAO did qualify its $394 million number. The study took into account only costs running from the ACA's outset in 2010, up to March 31, 2013. Also, it just looked at the costs of implementing the federal exchanges plus the data services hub.

On the other hand, the BGOV analysis looks at a longer time period (Obamacare enactment, through Sept. 30, 2013). That means it takes into account any recent, last-minute spending - more on that momentarily.

The BGOV study is also broader than the GAO's.

The BGOV uses the GAO to determine the top 10 contractors that are implementing exchanges in those 36 states in which the federal government is primarily handling the new

healthcare marketplaces. In other words, states where the federal government is using U.S. taxpayer money to set up marketplaces, as opposed to states that opted to set up marketplaces on their own using state dollars.

Then, instead of just focusing on federal exchange and data services hub costs like the GAO, the BGOV looks at the full range of Obamacare-related contract awards to these 10 firms.

These factors make the BGOV analysis more fairly centered on how much money it's really taking to implement the Obamacare website.

The result: More than $1 billion in contract awards is going to just these 10 firms, more than two and a half times more than reported by the GAO.

Equally appalling to this $1 billion price tag might be that one-third of the funding was awarded to IT contractors just over the last six months - despite indications that the contractors were aggregately doing a horrible job building the website. Programmers raised an alert prior to the Obamacare website going live, insurance companies had been complaining about problems when trying to use it prior to launch, and it even crashed in a test run before Oct. 1.

Perhaps the old adage, courtesy of Albert Einstein, applies here: "Insanity: doing the same thing over and over again, and expecting different results."

Top 10 Gold Stocks To Buy Right Now

The fact that the lion's share of the money was doled out only a few months before the Oct. 1 exchanges were set to open, in a rash of last-minute spending, is disturbing.

For instance, take a look at CGI Federal Inc., a subsidiary of Canadian IT solutions company CGI Group Inc. (NYSE: GIB).

CGI Federal is the largest recipient of Obamacare contract awards. The firm collected $149.9 million from April through the end of September - an impressive 35.5% of the total $421.8 million it has received since March 2010. 

Obamacare Website: Rushing Is Bad for Your Health

It's no wonder the Obamacare website is largely defective - it was a rush job.

In fact, of the 10 companies examined, Navigant Consulting Inc. (NYSE: NCI) is the only one that has received no new contract awards since the GAO's March 31 study cutoff date. (The firm is tasked with data collection and customer outreach.)

In late October, Health and Human Services Secretary Kathleen Sebelius testified under oath to Congress to address the Obamacare website launch disaster. She began with a prepared statement, with comments like "You deserve better," "I apologize," and "I'm accountable to you."

Sebelius also said that roughly $175 million in taxpayer dollars had been spent on the website so far.

So, it seems her estimate was a "little" low.

Editor's Note: Keep in mind, no matter how Obamacare affects your health, your wallet, or your politics, there is always a bright side when it comes to investing. We've found a way to profit from the shift in our nation's healthcare process. You can get started here.

Related Articles:

Money Morning:
How Self-Serving Politicians - Not Tech - Ruined the Obamacare Launch Money Morning:
Early Problems with Obamacare Are Bigger Than a Glitch

Wednesday, December 11, 2013

Numbers Of Women In Top Board And Executive Jobs Stays Poor

New research show that women have not been able to break the glass ceiling at many large corporations, at least as measured by their numbers in senior management and on board.

According to research firm Catalyst

While companies based in other countries move ahead with plans to advance women to top leadership, progress in the F500 remains flat, according to the 2013 Catalyst Census: Fortune 500 Women Board Directors and the 2013 Catalyst Census: Fortune 500 Women Executive Officers and Top Earners.

Among the findings: Women held only 16.9% of corporate board seats in 2013, indicating no significant year-over-year uptick for the 8th straight year. And only 14.6% of Executive Officer positions were held by women—the 4th consecutive year of no year-over-year growth.

Women of color continued to fare particularly poorly, holding just 3.2% of all board seats . 10% of companies had no women serving on their boards; more than 2/3 of companies had no women of color directors. Women held only 8.1% of top earner slots—again no change from prior year.

 

Tuesday, December 10, 2013

Ibovespa Rises as Slower Brazil Inflation Offsets Fed Concern

The Ibovespa advanced, reducing a third weekly drop, as slower-than-forecast Brazilian inflation offset concern that the Federal Reserve will reduce U.S. stimulus that has buoyed emerging-market assets.

MMX Mineracao & Metalicos SA rose to a one-week high after saying it is seeking partners to expand a mining project. Rossi Residencial SA (RSID3) led gains among homebuilders as traders reduced bets on higher borrowing costs. EDP-Energias do Brasil SA advanced after selling a stake in some of its power plants in Brazil to China Three Gorges Corp. Car-rental company Localiza Rent a Car SA climbed after Fitch Ratings increased its credit rating.

The Ibovespa rose 0.3 percent to 50,944.27 at the close of trading in Sao Paulo, paring this week's decline to 2.9 percent. Forty-four stocks gained on the gauge today while 28 fell. The real strengthened 1.3 percent to 2.3270 per U.S. dollar at 5:29 p.m. local time. Swap rates on contracts due in January 2015, used to wager on interest rates, fell 0.05 percentage point to 10.63 percent.

"Swap rates are falling a bit because of the inflation report," Luciano Rostagno, the chief strategist at Banco Mizuho do Brasil, said in a phone interview. "Today's figures don't make all the concern about inflation go away, but can help support some short-term gains in the markets."

Consumer prices increased 5.77 percent in November from a year earlier, the national statistics agency said today. The median estimate of economists surveyed by Bloomberg was 5.81 percent.

Rossi, Localiza

Rossi jumped 4.5 percent to 2.10 reais. Localiza added 0.4 percent to 32.89 reais as Fitch increased its issuer default rating to BBB from BBB- with a stable outlook. Energias do Brasil gained 1.4 percent to 11.95 reais.

MMX, the iron-ore producer founded by Eike Batista, gained 8.1 percent to 67 centavos. The company hired Credit Suisse Group AG and XP Investimentos CCTVM SA to find partners for its Serra Azul unit, seeking to boost capacity by about 150 percent to 15 million metric tons per year, Adriana Marques, MMX's investor relations manager, said today.

LLX Logistica SA, the port developer Batista founded, surged 15 percent to 1.06 reais, leading gains on the Ibovespa.

5 Best Oil Stocks To Buy For 2014

While the Ibovespa earlier fell as a payrolls report in the U.S. rekindled concern that the Fed will soon cut back stimulus, stocks rebounded amid speculation that a stronger economy will support equities, said Joao Pedro Brugger, a portfolio manager at Leme Investimentos.

'Good For Everyone'

"The U.S. economy seems to be doing well, which is good for everyone," Brugger said in a phone interview from Florianopolis, Brazil. "And it's not like the Federal Reserve would be able to keep its stimulus policy unchanged forever. People are starting to get used to this idea."

Brazil's benchmark equity index entered a bull market Sept. 9 after rising 20 percent from this year's low on July 3 through that day. The gauge is still down 27 percent in dollar terms this year, compared with a decline of 4.9 percent for the MSCI Emerging Markets Index of 21 developing nations' equities.

Trading volume of stocks in Sao Paulo today was 6.17 billion reais, data compiled by Bloomberg show. That compares with a daily average of 7.50 billion reais this year through yesterday, according to data available from the exchange.

Sunday, December 8, 2013

LPL CEO Mark Casady's Twitter photo proves he's ducking the razor

LPL Financial Holdings Inc. chairman and chief executive Mark Casady is sporting a surprisingly different look on his Twitter profile page these days.

To benefit an animal-rescue charity effort that LPL is undertaking, the usually clean-cut Mr. Casady is growing a beard. This week, he posted a Photoshopped “Duck Dynasty”-style beard on Twitter.

Today is start of Decembeard for Animal Friends. Support me at http://t.co/3TsDxm8Wrx @LPL Thx pic.twitter.com/zOLuIEeZmz

— Mark Casady (@MSCasady) December 1, 2013

It turns out that this month is “Decembeard” at LPL. Other top executives at the firm, including president Robert Moore, are joining Mr. Casady in sporting fresh growth on typically closely shaven faces.

Wearing my beard with my son's Google Glasses. Don't tell him its for Christmas! pic.twitter.com/c1Quk0VI5h

— Mark Casady (@MSCasady) December 3, 2013

Company spokeswoman Betsy Weinberger said that this was “an LPL-only initiative with an adviser of ours, Bob Fragasso.”

The goal is to raise money for Animal Friends.

According to a posting for LPL on CrowdRise, the charity is a “nonprofit companion animal resource center serving the needs of pets and people for 70 years. Programs include humane rescue, shelter and adoption services for homeless pets, humane education, pet behavior classes, pet-assisted therapy, wellness programs and more.”

Launched on Monday, the fund-raising program had raised more than $6,000 through Wednesday afternoon.

Mr. Casady, who led LPL's transformation over the past decade from a privately held brokerage firm to a publicly listed, 13,000-broker behemoth, also wore a stars and stripes bandana in the Photoshopped headshot, a la “Duck Dynasty” star Willie Robertson.

What is next for Mr. Casady? If Twitter portraits hold truth, perhaps he will lead next year's meetings for LPL's top-producing brokers and financial advisers in a Louisiana duck blind rather than a hotel in Hawaii.

5 Best Gold Stocks For 2014

Decembeard started @LPL Help us raise money for a get cause-Animal Friends http://t.co/3KJhhPvBIW me at 19! pic.twitter.com/HfYbMeWP9E

— Mark Casady (@MSCasady) December 2, 2013

Saturday, December 7, 2013

Driver in celebrity death crash was Merrill Lynch adviser

merrill lynch, paul walker, roger rodas, wealth manager, wirehouse, fast and furious, actor, celebrity

Many of the best financial advisers hope not just for proximity, but also lifelong kinship with the boldface names on their client lists.

There may be no more striking example of how close those bonds can be than the circumstances that brought the actor Paul Walker and his adviser together this past weekend.

Mr. Walker, 40, known most for his roles in the blockbuster “The Fast and the Furious” movie franchise, had been raising money for his disaster-relief organization and went out for a spin in a prized sports car with his close friend and broker, Roger W. Rodas.

The drive ended in a fiery car crash that killed both men Saturday, law enforcement officials told the media.

Mr. Rodas, 38, was a nearly-two-decade Bank of America Corp. employee who had become one of Merrill Lynch's most successful brokers in Southern California. The automobile aficionado and exotic-car shop owner also headed a team of advisers in Glendale, Calif.

Mr. Walker met Mr. Rodas at a race club, and the two talked about one of Mr. Rodas' Porsches. The two raced cars together even before Mr. Rodas developed Mr. Walker as a formal client in 2007, according to an article published two years ago by Merrill Lynch.

The article said that Mr. Rodas reorganized Mr. Walker's portfolio, “a hodgepodge of personal investments,” meeting with the actor to readjust financial strategies after each movie he made, suggesting he incorporate his race shop to make his hobby financially self-sustaining and working with an accountant to set up the actor's foundation, Reach Out Worldwide.

10 Best Small Cap Stocks To Own Right Now

Authorities said the two died in a car crash in a Porsche that Mr. Rodas was driving after a Reach Out fundraising event, several news outlets reported.

The relationship between Mr. Walker and Mr. Rodas was unusual, said Jeffrey B. Wheeler, a Westlake Village, Calif.-based adviser who has celebrity clients.

Advisers who manage money for the tabloid set more commonly deal with handlers and gatekeepers, such as business managers, than their clients, he said.

“People who are a

Friday, December 6, 2013

These 7 Charts Are Bad News for The Bull Market

The warning signs of a stock market crash in 2014 are getting harder and harder to ignore...

Several prominent market watchers, including Ben Inker, head of the asset allocation group at GMO, and John Hussman of the Hussman Funds, say the markets are about 40% overvalued.

Last week, Yale Professor Robert Shiller, a Nobel-prize winning economist, expressed concern that stocks may have gotten ahead of themselves.

"I am most worried about the boom in the U.S. stock market. Also because our economy is still weak and vulnerable," Shiller told the German magazine Der Spiegel.

These analysts referenced a number of crash indicators nearing "warning" levels, which we've detailed in the charts below.

Of course, none of this means investors should run out and sell every stock they own in a blind panic. But it does mean investors absolutely need to proceed with caution, choosing stocks in stronger sectors and using trailing stops. [Here's a detailed plan on how to protect your money from a stock market crash.]

Now let's take a look at those seven charts pointing to a stock market crash in 2014...

The Seven Charts That Warn of a Stock Market Crash 2014

These charts provide worrisome clues that the stock markets are seriously overvalued and due for a big correction:

Stock Market Crash Chart #1: Shiller's CAPE Ratio


The cyclically adjusted price/earnings (CAPE) ratio, created by Robert Shiller, smoothes out the price/earnings (P/E) ratio by averaging it over 10 years. Now at 24.42, the CAPE is substantially above its long-term average of 16. And more ominously, the CAPE has only been higher twice - at the end of the 1920s, just before the Stock Market Crash of 1929, and at the end of the 1990s, just before the dot-com stock market crash.

Stock Market Crash Chart #2: The VIX


The VIX measures market volatility, and is commonly referred to as the "fear index." A higher VIX indicates more concern among investors and often accompanies downturns. As the markets headed toward the 2009 lows, the VIX was between 40 and 60. But it's down 28% in 2013 and is currently hovering around 14. Similar measures also indicate little concern among investors of a market crash. High levels of confidence in the markets often precede crashes.


Stock Market Crash Chart #3: NYSE Trading Volume


The markets have reached record highs on declining trading volume, which indicates weakness. This tells us there are fewer and fewer buyers, which will make it harder for stocks to continue their push to new heights. And when things go south, a lack of buyers will only accelerate the decline.


Stock Market Crash Chart #4: Margin Debt


Another catalyst of a market crash is when too many investors are using leverage - borrowing - to buy stocks and capture expected gains. When a bull market turns bearish, such investors need to get out quickly to avoid losses they can't afford. That tends to accelerate the speed of a crash, and feeds on itself. Right now we're at dangerous levels of margin debt, which could turn a mild correction into something worse.


Stock Market Crash Chart #5: Profit Margins


Profit margins are near record highs and significantly above their 10-year average. Given the overall weakness in the U.S. economy, and in particular consumer spending, this doesn't appear sustainable. What's more, Hussman says that corporate profits as a share of gross domestic product are 70% above their historic norm. When profit margins revert to the mean - which they almost surely will - stock prices will tumble.


Stock Market Crash Chart #6: Earnings Forecasts


Strong earnings have been a primary driver of the markets over the past year, but estimates for earnings have been dropping. Many companies that reported good earnings in the third quarter also lowered guidance for the fourth quarter. Slowing growth spells trouble for the current rally.


Stock Market Crash Chart #7: Price vs. Earnings


In recent years, the divergence between earnings and stock prices has grown disturbingly wide, which is risky enough.  But prices have a tendency to closely track earnings - and more dramatically so as the gap between the two has grown larger. If earnings do slow in 2014, which the previous charts appear to suggest, that could be enough to trigger a stock market crash.


Money Morning Chief Investment Strategist Keith Fitz-Gerald blames this gap on the U.S. Federal Reserve's easy money policies.

Best Canadian Companies To Own In Right Now

"The markets are up 83% since Q2 of 2009, but consumer spending is up only 9%," said Fitz-Gerald. "That huge divergence tells me that the stock market has enjoyed the liquidity boom but the consumer has not. And it means one of two things: either market prices have got to come down, or earnings have to go up. This is a classic sign for technical traders that there's a danger sign flashing on the dashboard."

Speaking of the Fed and how it's manipulated our stock market - ever heard of the Taylor Rule? Not many people have, and the folks at the U.S. Federal Reserve would prefer to keep it that way. The Fed realizes that if most Americans became aware of the Taylor Rule and what it means, they'd probably be tarred and feathered. That's why you need to see this now...

Related Articles:

Money Morning:
The Real "Pin" That Could Pop the Stock Bubble John Hussman:
An Open Letter to the FOMC: Recognizing the Valuation Bubble in Equities Business Insider:
I Think There's a Decent Chance Stocks Will Crash MarketWatch:
Robert Shiller 'Most Worried' About 'Boom' in U.S. Stock Market