SEC Proxy Advisory Roundtable to Discuss Conflicts of Interest, Competition

The Securities and Exchange Commission announced Wednesday the agenda and panelists for its roundtable on Dec. 5 to discuss the use of proxy advisory firm services by institutional investors and investment advisors.

The roundtable will be held at SEC headquarters in Washington and will be divided into two sessions.

In the first session, participants — who include former SEC Chairman Harvey Pitt; Karen Barr, general counsel for the Investment Adviser Association; and Jeffrey Brown, head of Legislative and Regulatory Affairs for Charles Schwab — will discuss, among other topics, the current use of proxy advisory services, including the factors that may have contributed to their use, the purposes and effects of using the services, and competition in the marketplace for such services.

The second session will include a discussion on issues identified in the commission’s 2010 concept release on the U.S. proxy voting system, including potential conflicts of interest that may exist for proxy advisory firms and users of their services, and the transparency and accuracy of recommendations by proxy advisory firms.

IAA’s Barr told ThinkAdvisor that proxy advisory firms provide a “wide range” of services to advisors, including mechanics of voting, research of the various issues that come up on shareholder ballots, as well as providing recommended ways to vote. The latter service, she said, “is generating a lot of discussion because some issuers say the providers lack transparency.”

Institutional Shareholder Services (ISS) and Glass Lewis & Co., Barr said, “together hold 97%” of the proxy advisory market.

Issues that Barr said she plans to focus on are to “counter some of the misperceptions that advisors rotely follow ISS,” and to discuss “the conflicts of interest by these proxy advisory firms and how advisors evaluate those conflicts.”

Other roundtable panelists include:

 

• Mark Chen - Associate Professor of Finance, Georgia State University

• Michelle Edkins - Managing Director and Global Head Corporate Governance and Responsible Investment, BlackRock, Inc.

• Yukako Kawata - Partner, Davis Polk & Wardwell LLP

• Hoil Kim - Vice President, Chief Administrative Officer and General Counsel, GT Advanced Technologies, Inc.

• Eric Komitee - General Counsel, Viking Global Investors LP

• Jeff Mahoney - General Counsel, Council of Institutional Investors

• Nell Minow - Co-Founder and Board Member, GMI Ratings

• Trevor Norwitz - Partner, Wachtell, Lipton, Rosen & Katz

• Katherine Rabin - CEO, Glass Lewis & Co. LLC

•  Gary Retelny - President, Institutional Shareholder Services, Inc.

• Michael Ryan - Vice President, Business Roundtable, and former president and COO of Proxy Governance, Inc.

• Anne Sheehan - Director of Corporate Governance, CalSTRS

• Damon Silvers - Director of Policy and Special Counsel, AFL-CIO

• Darla Stuckey - Senior Vice President of Policy and Advocacy, Society of Corporate Secretaries

•  Lynn Turner - Managing Director, LitiNomics, Inc.

 

Apple Inc. (AAPL) Q4 Earnings Preview: Poised To Pop Or Poisonous?

Apple Inc. (AAPL) plans to conduct a conference call to discuss financial results of its fourth fiscal quarter on Monday, October 28, 2013 at 2:00 p.m. PT / 5:00 p.m. ET.

Wall Street anticipates that the smartphone and tablet maker will earn $7.89 for the quarter. iStock expects the NASDAQ 100 member to smash Wall Street's consensus number. The iEstimate is $8.22, a 33 cent upside surprise.

In case you were born yesterday, Apple, manufactures, and markets mobile communication and media devices, personal computing products, and portable digital music players worldwide. Its products and services include iPhone, iPod, iMac, iTunes and more.

Lately, Apple has struggled to live up to earnings' expectations, missing the mark three of the last five quarters. Prior to that, the tech titan smoked the consensus 10 of 11 quarterly checkups, by an average of 33%.

Expectations are running high heading into Monday's announcement. Ten analysts have upwardly revised their estimates within the last 30 days, and two upped their outlook in the last week.

Apple management set the table for rising hopes announcing, "[Apple] sold a record-breaking nine million new iPhone® 5s and iPhone 5c models, just three days after the launch of the new iPhones on September 20 [2013]." Recently, Team iPhone quietly backed off their out-of-the gate enthusiasm with the 5C.

Management continued to beef-up expectations following the iPhone 5S & 5C news by guiding their outlook for fourth-quarter revenue to the high end of its estimates, around $37 billion with gross margins near the high end its forecasts, too: key word – Gross.

Morgan Stanley's Katy Huberty believes gross margin will come in at 38.7%, which would be up from last quarter's 36.87%.

Where margins come in will depend on the mix of various iPhone models sold. iStock has a sneaky suspicion the mix might not be as profitable as hoped for as we turned to Google Trends for clues, once again.

iPhone 5S might be selli! ng like hotcakes, but search volume intensity just isn't there. Web queries for iPhone 5S peaked at 35% of iPhone 5's max score. In fact, current trends show as much interest in the iPhone 5 as the 5S.  Perhaps, the shortfall can be chalked-up to the upgrade cycle, and current users just didn't feel the need to Google for more info?

And then, when you consider that Apple's inventory more than doubled year-over-year in the third quarter, it is not so hard to connect the dots and make the case that the company moved a lot of older merchandise out the door.  While the impact might not be felt on gross margin – those phones are already built, and the cost accounted for – it certainly could influence net margin.

With expectations running high, any hiccup could be unwelcome news for the stock price and the company's credibility. Apple shares fell three of the four times EPS didn't live up to the street's outlook, dropping an average of 4.4% in the three days surrounding the profit announcement. This time, beating the mark might not be enough to overcome the per-news hype. Just ask Netflix (NFLX).

Overall: iStock has some concerns that the bar for Apple Inc. (AAPL) might be a little too high. The difference between a pop or drop is likely to boil down to net margin. Let's just hope Google Trends and bulky inventory are false flags. 

David Marsh: Tests looming for Janet Yellen

Janet Yellen will become the world's most powerful woman on Feb. 1. The Federal Reserve is still the world's monetary policeman. The dollar is by a large margin the supreme international currency.

At the helm of the Fed's board and the interest rate-setting Federal Open Market Committee, Yellen can produce global waves. She will be presiding over the gradual withdrawal of the Fed's extraordinary monetary stimulus of the past five years. The process should eventually bring rewards for the U.S. and its partners, but it can cause pain too – as the turbulence of the last few days have shown in emerging market economies ranging from Brazil and Turkey to Argentina and India.

In aftermath of the financial crisis, central banks across the world, are being called upon to take up an ever-wider set of responsibilities - not just monetary stability but also fiscal policies and banking supervision. All this brings strains on their operating maneuverability as well as on their independence.

MARKETS: Stocks swoon amid Fed, emerging market worries

FED OUTLOOK: Steady Fed policy could steady markets

The burdens on Yellen are acute. Yet in her new role, both in America and globally, she is likely to accomplish that task better than most. She can combine her first-class economics training with ability to drawn on diverse experience to master two great challenges: returning U.S. monetary policy to a more normal path, and helping prepare America for a multi-polar world in which it shares economic and financial power more equitably with other countries, not least in Asia.

What is remarkable about Yellen's appointment is not that she is a woman. She was the best candidate for the job. More important, she had to overcome the favoritism of the old boy network at the White House. President Obama haplessly clung, almost to the last moment, to his preferred choice, former Treasury secretary Lawrence Summers – a brilliant man, but one whose intellectual skittishness and sometimes unm! annerly behavior would have made him highly accident-prone.

The president eventually caved in and accepted Yellen's impressive credentials. By raising her reputation for independence and damaging that of the president for sound judgment, the episode harmed Obama much more than Yellen.

Yellen is a Keynesian economist but not dogmatic. She has been sometimes overshadowed by her husband, George Akerlof, who won the Nobel prize for economics in 2001. Yellen now moves truly out of the shadows. She is extremely smart but has no need to appear the smartest person in the room.

Already, for reasons unconnected to gender, she has made history for several reasons. At 67, she is the oldest person ever appointed to be Fed chief and the first vice chairman to ascend to the top job. She is the first Democrat called upon to lead the Fed since President Jimmy Carter appointed Paul Volcker in 1979. She and Stanley Fischer, another veteran of global reputation, will be a star team.

In past years Yellen has drawn attention to the balance sheet vulnerabilities of U.S. banks that would face large write-down on their bond holdings should the Fed abruptly stop asset purchases. If the bond purchase program wind-down coincides, as planned, with a pick-up in the economy, an increase in banks' lending and a reduction in their government bond holdings, then this factor will be a great deal much less crucial.

Generally, though, political and economic circumstances will make 2014 a lot less benign than 2013 for financial markets.

Diminutive, low-pitched Yellen was considered by some in the vetting process last fall to lack gravitas – as if only a 6-foot-7 inch, gravel-voiced cigar-chomping male like Paul Volcker could be said to have that quality. The Fed faces enormous challenges. A 5- foot-3 inch lady from Brooklyn who speaks softly but carries a big monetary stick is not the worst person to tackle them.

David Marsh is chairman of the Official Monetary and Financial Institutions ! Forum (OM! FIF), a London-based think tank that promotes dialogue between private-sector and public institutions on world finance.

Best Small Cap Companies To Buy For 2015

Despite�a slow global economy and continued high unemployment in many countries, small cap payday or pawn stocks Cash Store Financial Services Inc (NYSE: CSFS), DFC Global Corp (NASDAQ: DLLR) and Cash America International, Inc (NYSE: CSH) have not exactly been performing well since the start of the year. In fact, these three stocks are the worst performers in the payday or pawn loan sector, down 38.5%, down 14.4% and up 4.6%, respectively, since the start of the year.

That might come as a surprise given the proliferation of payday or pawn loan store fronts throughout the US, but I should also mention that the Cash Store Financial Services is focused on the Canadian and UK markets, DFC Global Corp has a global presence and Cash America International is focused on the US and Mexican markets. Moreover, there have long been concerns about payday or pawn loan types of lenders ��busing��the poor with the latest indirect bad news for the industry coming yesterday with the news that New York's attorney general is suing three online lenders on allegations�they charged interest rates to low-income New Yorkers that were more than 10 times higher than state law allows.

Best Small Cap Companies To Buy For 2015: EZchip Semiconductor Limited(EZCH)

EZchip, a fabless semiconductor company, engages in the development and marketing of Ethernet network processors for networking equipment. Its products include network processor chips, evaluation boards and network-processor based systems, and development software toolkits. The company offers network processors for use in forming the silicon core of networking equipment, such as switches and routers; and for voice, video and data integration in various applications. Its network processors are single-chip solutions, which enable its customers to design multi-port line cards, such as processing and classification engines, traffic managers, media access controllers, as well as a range of specialized hardware blocks that accelerate various functions. The company offers Evaluation systems which enable customers to test NPU-based systems; and toolkits that assist customers in creating, verifying, and implementing solutions based on its network processors. It provides a library f eaturing data plane code for a range of applications, which include Metro Ethernet protocols, Multi-Protocol Label Switching, IPv4 and IPv6 routing, Access Control Lists, GPON/EPON OLT functionality, Network Address Translation, and Server Load Balancing. The company sells its products directly, and through contract manufacturers and distributors to network equipment vendors. It markets its products in Israel, China, Hong Kong, the Far East, Canada, the United States, and Europe. The company was formerly known as LanOptics Ltd. and changed its name to EZchip Semiconductor Ltd. in July 2008. EZchip Semiconductor Ltd. was founded in 1989 and is based in Yokneam, Israel.

Advisors' Opinion:

• [By Evan Niu, CFA]

  What: Shares of EZchip (NASDAQ: EZCH  ) have jumped today by as much as 13% after the company reported first-quarter earnings.

  So what: Revenue in the first quarter totaled $15.3 million, topping the Street's forecast of $15.1 million. Non-GAAP net income per share came in at $0.23, which was right on target with expectations.

• [By Jake L'Ecuyer]

  EZchip Semiconductor (NASDAQ: EZCH) was also up, gaining 7.16 percent to $24.11 after a Cisco (NASDAQ: CSCO) announced a new product that would not threaten the company as previously thought. Equities Trading DOWN
  Shares of Cypress Semiconductor (NASDAQ: CY) were down 16.05 percent to $9.91 after the company lowered its Q3 forecast.

Best Small Cap Companies To Buy For 2015: Texas Instruments Incorporated(TXN)

Texas Instruments Incorporated engages in the design and sale of semiconductors to electronics designers and manufacturers worldwide. The company?s Analog segment offers high-performance analog products comprising standard analog semiconductors, such as amplifiers, data converters, and interface semiconductors; high-volume analog and logic products; and power management semiconductors and line-powered systems. Its Embedded Processing segment includes DSPs that perform mathematical computations to process and enhance digital data; and microcontrollers, which are designed to control a set of specific tasks for electronic equipment. The company?s Wireless segment designs, manufactures, and sells application processors and connectivity products. Its Other segment offers smaller semiconductor products, which include DLP products that are primarily used in projectors to create high-definition images; and application-specific integrated circuits. This segment also provides handhe ld graphing and scientific calculators, as well as licenses technologies to other electronic companies. The company serves the communications, computing, industrial, consumer electronics, automotive, and education sectors. Texas Instruments Incorporated sells its products through a direct sales force, distributors, and third-party sales representatives. It has collaboration agreements with PLX Technology Inc.; Neonode, Inc.; and Ubiquisys Ltd. The company was founded in 1938 and is headquartered in Dallas, Texas.

Advisors' Opinion:

• [By Chuck Saletta]

  Speaking of results ...
  Right now, quarterly earnings season is well under way, which provides a perfect opportunity for one of those "check in from time to time" moments. While the iPIG portfolio did nothing last week, several of its picks did report, and those quarterly confessionals can help determine whether the companies are still worth owning. To summarize key results:

  United Technologies (NYSE: UTX  ) reported decent numbers, with net earnings ahead of expectations but growth driven more by acquisitions than by organic improvements in its existing businesses. Given the company's conglomerate setup, growth by bolt-on acquisitions isn't surprising, but over the long haul, it'd be better to see its businesses growing internally as well as through acquisitions. The news at Mine Safety Appliances (NYSE: MSA  ) wasn't quite as good, with both revenues and net earnings falling from year ago levels on a tough environment for the mining businesses it supports. That's a risk well known to the company and its shareholders, though, and while the weaker results did knock the company's stock down, the business has ridden through tough cycles before. It looks capable of riding through this one, too. Hasbro (NASDAQ: HAS  ) , on the other hand, reported earnings that beat expectations on an operating basis, before restructuring charges knocked it down to a net loss. Given that the company is in the very seasonal toy business, that loss in an off-peak quarter is much less of a concern than it would have been in the make-or-break holiday quarter. UPS (NYSE: UPS  ) kept on trucking, with a better-than-expected January and strength from eCommerce helping the company turn in an 8% growth in net reported earnings per share. Overall, UPS is operating efficiently, though its future success is tied to its ability to continue delivering more packages. As long as its e-commerce business continues to grow, though, UPS is wel
• [By Mike Deane]

  Before Thursday’s opening bell, Nomura Securities downgraded Texas Instruments (TXN) from “Neutral” to “Reduce” and has left TXN’s price target unchanged at $33.

  Nomura believes that TXN no longer has future margin benefits, and that the price its trading too high relative to its peers.

  Romit Shah, an analyst at Nomura, had the following comments about the downgrade: “While TI’s execution has been solid, we believe the company’s performance is well respected and understood. TI is trading at a 10-year high to Intel (85% premium versus an average of +3%) and Qualcomm (10% discount versus an average of -58%). Margin benefits from optimizing free cash flow that have been a big boost to the stock may have run their course. In addition, we believe that revenue growth despite a diminishing wireless drag may continue to be modest. Furthermore, we estimate that share repurchases at current levels are barely reducing share count. Our target price is unchanged at $33 and is based on a multiple of 15x 2014E EPS, excluding net cash.”

  Nomura’s price target on TXN suggests a 23% downside to TXN’s current stock price.

  TXN shares were inactive in pre-market trading. This year, the company’s stock is up 32.5%

Hot Bank Stocks To Buy Right Now: KongZhong Corporation(KONG)

KongZhong Corporation, together with its subsidiaries, provides wireless interactive entertainment, media, and community services to mobile phone users in the People's Republic of China. It also involves in the development, distribution, and marketing of consumer wireless value-added services, including wireless application protocol, multimedia messaging services, short messaging services, interactive voice response services, and color ring back tones. In addition, it offers interactive entertainment services, such as mobile games, pictures, karaoke, electronic books, mobile phone personalization features, entertainment news, chat, and message boards; and through Kong.net offer news, community services, games, and other interactive media and entertainment services; and sells advertising space in the form of text-link, banner, and button advertisements. Further, the company develops and publishes mobile games, including downloadable mobile games and online mobile games cons isting of action, role-playing, and leisure games. As of December 31, 2009, it had a library of approximately 300 internally developed mobile games. Additionally, it develops online games; and provides consulting and technology services, as well as media and net book services. The company was formerly known as Communication Over The Air Inc. and changed its name to KongZhong Corporation in March 2004. KongZhong Corporation was founded in 2002 and is headquartered in Beijing, the People?s Republic of China

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 Kongzhong (Nasdaq: KONG  ) , whose recent revenue and earnings are plotted below.

• [By Roberto Pedone]

  One under-$10 wireless services player that looks poised for a big spike higher is KongZhong (KONG), which is a provider of WVAS and mobile games to mobile phone users and a wireless media company providing news, content, community and mobile advertising services through its wireless Internet sites in the PRC. This stock is off to a hot start in 2013, with shares up sharply by 53%.

  If you take a look at the chart for KongZhong, you'll notice that this stock has been downtrending badly for the last two months, with shares plunging lower from its high of $14.92 to its recent low of $7.78 a share. During that downtrend, shares of KONG have been consistently making lower highs and lower lows, which is bearish technical price action. That move has now pushed shares of KONG into oversold territory, since its current relative strength index reading is 30.21. Shares of KONG are now starting to spike higher off its recent low of $7.78 a share and off its 200-day moving average of $7.95 a share. This spike could be signaling that the downside volatility for KONG is over in the short-term and the stock is ready to trend higher.

  Traders should now look for long-biased trades in KONG if it manages to break out above some near-term overhead resistance at $8.50 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 519,857 shares. If that breakout triggers soon, then KONG will set up to re-test or possibly take out its next major overhead resistance levels at $10 to its 50-day moving average at $11.33 a share.

  Traders can look to buy KONG off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $7.78 a share. One can also buy KONG off strength once it takes out $8.50 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Best Small Cap Companies To Buy For 2015: Achillion Pharmaceuticals Inc.(ACHN)

Achillion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of treatments for infectious diseases. The company focuses on the development of antivirals for the treatment of chronic hepatitis C; and the development of antibacterials for the treatment of resistant bacterial infections. Its drug candidates for the treatment of chronic HCV include ACH-1625, a protease inhibitor, which is in phase IIa clinical trial for the treatment of chronic HCV; ACH-2684, a pangenotypic protease inhibitor, which is in phase I clinical trial for the treatment of chronic HCV infection; and NS5A inhibitors for the treatment of chronic HCV infection, including ACH-2928, which is to enter a phase I clinical trial, as well as various additional NS5A inhibitors in preclinical development. Its pipeline of product candidates also includes ACH-702 and ACH-2881 for drug resistant bacterial infections; elvucitabine for HIV infection; and AC H-1095 for HCV infection. The company was founded in 1998 and is based in New Haven, Connecticut.

Advisors' Opinion:

• [By Keith Speights]

  Liver quivers
  Achillion Pharmaceuticals (NASDAQ: ACHN  ) ranks as the top drop of the week. Shares plunged 24% on news that the Food and Drug Administration placed a clinical hold on experimental hepatitis C drug�sovaprevir.

Best Small Cap Companies To Buy For 2015: Panera Bread Company(PNRA)

Panera Bread Company, together with its subsidiaries, owns, operates, and franchises retail bakery-cafes in the United States and Canada. Its bakery-cafes offer fresh baked goods, sandwiches, soups, salads, custom roasted coffees, and other complementary products, as well as provide catering services. The company also manufactures and supplies dough and other products to company-owned and franchise-operated bakery-cafes. As of March 29, 2011, it owned and franchised 1,467 bakery-cafes under the Panera Bread, Saint Louis Bread Co., and Paradise Bakery & Cafe names. The company was founded in 1981 and is based in St. Louis, Missouri.

Advisors' Opinion:

• [By Demitrios Kalogeropoulos]

  The company didn't have much choice. Besides dealing with increasingly frugal consumers, Darden has had seen fast-casual restaurants such as Panera Bread (NASDAQ: PNRA  ) expand into its turf. Panera this spring bulked up its food offerings by adding a line of pasta dishes to the menu. That helped the company log better than 3% sales growth for the first quarter, and an expanded operating margin to boot.

Best Small Cap Companies To Buy For 2015: Voyager Oil & Gas Inc.(VOG)

Voyager Oil & Gas, Inc. engages in the exploration and production of oil and gas in the United States. It primarily focuses on oil shale resource prospects in Montana, North Dakota, Colorado, and Wyoming. As of May 17, 2011, the company controlled approximately 141,500 net acres in the five primary prospect areas comprising 28,000 net acres targeting the Bakken/Three Forks in North Dakota and Montana; 14,200 net acres targeting the Niobrara formation in Colorado and Wyoming; 800 net acres targeting a Red River prospect in Montana; 33,500 net acres in a joint venture targeting the Heath Shale formation in Musselshell, Petroleum, Garfield, and Fergus counties of Montana; and 65,000 net acres in a joint venture in the Tiger Ridge gas field in Blaine, Hill, and Chouteau counties of Montana. It supplies energy and fuel for industrial, commercial, and individual consumers. The company is based in Billings, Montana.

Best Small Cap Companies To Buy For 2015: OCZ Technology Group Inc(OCZ)

OCZ Technology Group, Inc. designs, develops, manufactures, and distributes computer components for computing devices and systems worldwide. It primarily offers solid state drives, flash memory storage, memory modules, thermal management solutions, AC/DC switching power supply units, and computer gaming solutions. The company?s products are used in industrial equipment and computer systems; computer and computer gaming solutions; mission critical servers and high end workstations; personal computer (PC) upgrades to extend the useable life of existing PCs; high performance computing and scientific computing; video and music editing; home theatre PCs and digital home convergence products; and digital photography and digital image manipulation computers. OCZ Technology Group, Inc. offers its products to retailers, on-line retailers, original equipment manufacturers, systems integrators, and distributors. The company was founded in 2002 and is headquartered in San Jose, Califo rnia.

Advisors' Opinion:

• [By Rich Duprey]

  The not-so-great and wonderful OCZ
  There was no company-specific news that caused solid-state-drive maker OCZ Technology (NASDAQ: OCZ  ) to fall almost 8% Wednesday. But an article that appeared on Seeking Alpha �questioning whether the company had six months or less to live before it filed for bankruptcy seemed to coincide with its fall.

Best Small Cap Companies To Buy For 2015: Sify Technologies Limited(SIFY)

Sify Technologies Limited provides enterprise and consumer Internet services primarily in India. The company offers various corporate network/data services comprising e-commerce and network connectivity solutions, such as end-to-end services network, application, and security services; voice origination and termination services; co-location and managed hosting services; and system integration services for data centre build, hardware distribution, security solutions, and turnkey projects. It also provides application services, including SLEMS and Microsoft Exchange messaging platforms; I-test for online assessment and LiveWire, which enable management of training processes across the organization; document management system for the management of documents electronically; and Forum, a forward supply chain solution. In addition, the company operates e-Ports that offer browsing, chat, email, gaming, utility bill payment, travel ticketing, hotel booking, mobile recharge, Intern et telephony, and online share trading services; and portals, which provide news, views, reviews, interactions, and services in the areas of movies, sports, finance, food, videos, astrology, online games, shopping, and travel, as well as offers content offerings and broadband services. Further, it provides infrastructure management services, such as network management, datacenter and helpdesk outsourcing, desktop and storage outsourcing, IT security outsourcing, LAN and WAN outsourcing, database and telecom outsourcing, and application monitoring and management services to automotive, chemical, media, and financial enterprises; and virtualization design, integration, and deployment services for servers, storage, networks, and end user clients. Sify has approximately 1,278 e-Ports in 200 towns and cities; and serves 1,06,000 broadband subscribers through 1500 cable TV Operators. The company, formerly known as Sify Limited, was founded in 1995 and is based in Chennai, India.

Best Small Cap Companies To Buy For 2015: Hot Topic Inc.(HOTT)

Hot Topic, Inc., together with its subsidiaries, operates as a mall- and Web-based specialty retailer in the United States. The company operates Hot Topic and Torrid store concepts, as well as an e-space music discovery concept, ShockHound. Its Hot Topic stores sell music/pop culture-licensed merchandise, including tee shirts, hats, posters, stickers, patches, postcards, books, novelty accessories, CDs, and DVDs; and music/pop culture-influenced merchandise comprising women?s and men?s apparel and accessories, such as woven and knit tops, skirts, pants, shorts, jackets, shoes, costume jewelry, body jewelry, sunglasses, cosmetics, leather accessories, and gift items for young men and women primarily between the ages of 12 and 22. The company?s Torrid stores sells casual and dressy jeans and pants, fashion and novelty tops, sweaters, skirts, jackets, dresses, hosiery, shoes, intimate apparel, and fashion accessories for various lifestyles for plus-size females primarily betw een the ages of 15 and 29. As of July 30, 2011, it operated 636 Hot Topic stores in 50 states, Puerto Rico, and Canada; 145 Torrid stores; and Internet stores, hottopic.com and torrid.com. The company was founded in 1988 and is headquartered in City of Industry, California.

Advisors' Opinion:

• [By Marshall Hargrave]

  In May True Religion (TRGL) announced a buyout offer from TowerBrook Capital for $826 million. Also in May, Rue21 decided to sell itself to Apax Partners for $2.2 billion. Before that, in March, Hot Topic (HOTT) announced that Sycamore Partners was buying out it out for $600 million.

Best Small Cap Companies To Buy For 2015: InterDigital Inc.(IDCC)

Interdigital, Inc. engages in the design and development of digital wireless technology solutions. The company offers technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, and IEEE 802-related products and networks. It holds patents related to the fundamental technologies that enable wireless communications. The company licenses its patents to equipment producers that manufacture, use, and sell digital cellular and IEEE 802-related products; and licenses or sells mobile broadband modem solutions, including modem IP, know-how, and reference platforms to mobile device manufacturers, semiconductor companies, and other equipment producers that manufacture, use, and sell digital cellular products. InterDigital?s solutions are incorporated in various products comprising mobile devices, such as cellular phones, tablets, notebook computers, and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; and components, dongles, and modules for wireless devices. The company was founded in 1972 and is headquartered in King of Prussia, Pennsylvania.

Advisors' Opinion:

• [By James E. Brumley]

  Endeavor IP isn't the only publicly-traded intellectual property enforcement company out there. It is, however, the only one to focus on quality over quantity. Whereas other players like patent portfolio names like InterDigital, Inc. (NASDAQ:IDCC) and Vringo, Inc. (NASDAQ:VRNG) will literally buy patents by the hundreds - perhaps sometimes without even knowing what some of those patents even cover - in an effort to arm itself with any and every possible patent for any and every contingency. Most are likely worthless, which means companies like InterDigital or Vringo may have wasted shareholder money by buying IP that isn't capable of bearing revenue.

Best Small Cap Companies To Buy For 2015: OmniVision Technologies Inc.(OVTI)

OmniVision Technologies, Inc. designs, develops, and markets semiconductor image-sensor devices. The company offers CameraChip image sensors, which are single-chip solutions that integrate various functions, such as image capture, image processing, color processing, signal conversion, and output of a processed image or video stream for use in various consumer and commercial mass-market applications; and CameraCube imaging devices that are image sensors with integrated wafer-level optics. It also provides companion chips used to connect its image sensors to various interfaces, including the universal serial bus and other industry standard interfaces; and companion digital signal processors that perform compression in standardized still photo and digital video formats. In addition, the company designs and develops software drivers for Linux, Mac OS, and Microsoft Windows, as well as for embedded operating systems, such as Blackberry OS, Palm OS, Symbian, Windows CE, Windows Embedded, and Windows Mobile. Its products are used in mobile phones, notebooks, Webcams, digital still and video cameras, commercial and security and surveillance, and automotive and medical applications, as well as in entertainment devices. The company sells its products directly to original equipment manufacturers and value added resellers, as well as indirectly through distributors worldwide. OmniVision Technologies, Inc. was founded in 1995 and is based in Santa Clara, California.

Advisors' Opinion:

• [By Brian Pacampara]

  What: Shares of image sensor specialist OmniVision Technologies (NASDAQ: OVTI  ) spiked 19% today after its quarterly results and outlook topped Wall Street expectations.

• [By Anders Bylund]

  Shares of OmniVision Technologies (NASDAQ: OVTI  ) jumped as much as 23% overnight, driven by a rock-solid fourth quarter report. The stock set a fresh 52-week high, but remains far below the $36 high-water mark that was set in 2011 when OmniVision's back side illumination, or BSI, camera chips seemed set to rule the smartphone world.

Best Small Cap Companies To Buy For 2015: FuelCell Energy Inc.(FCEL)

FuelCell Energy, Inc., together with its subsidiaries, engages in the development, manufacturing, and sale of high temperature fuel cells for clean electric power generation primarily in South Korea, the United States, Germany, Canada, and Japan. The company offers proprietary carbonate Direct FuelCell Power Plants that electrochemically produce electricity from hydrocarbon fuels, such as natural gas and biogas. Its fuel cells operate on a range of hydrocarbon fuels, including natural gas, renewable biogas, propane, methanol, coal gas, and coal mine methane. The company also develops carbonate fuel cells, planar solid oxide fuel cell technology, and other fuel cell technologies. It provides its products to universities; manufacturers; mission critical institutions, such as correction facilities and government installations; hotels; and natural gas letdown stations, as well as to customers who use renewable biogas for fuel, including municipal water treatment facilities, br eweries, and food processors. The company was founded in 1969 and is headquartered in Danbury, Connecticut.

Advisors' Opinion:

• [By Lauren Pollock]

  FuelCell Energy Inc.'s(FCEL) fiscal fourth-quarter loss narrowed as the power-equipment maker reported broad sales growth across all segments and wider gross margins. But the loss was still steeper than expected, sending shares down 11% to $1.65 premarket.

• [By John Udovich]

  Tesla Motors Inc (NASDAQ: TSLA) has a growing�battery fire mess on its hand but should investors in small cap fuel cell stock Plug Power Inc (NASDAQ: PLUG) be more worried than investors in fuel cell peers like FuelCell Energy Inc (NASDAQ: FCEL) and Ballard Power Systems Inc (NASDAQ: BLDP)? After all, Tesla Motors Inc�� battery fire problems seem to result from drivers running over debris that damage�or pierce the undercarriage rather than with the batteries�themselves (as in Boeing�� case). Nevertheless, any news about batteries or fuel cells and the like catching on fire could spill over�and impact peers - unless there are other concerns for investors. ��

Alcoa Cut to “Sell” at Deutsche Bank; Outlook Lowered (AA)

Deutsche Bank reported on Wednesday that it has cut its rating on Alcoa Inc (AA) to “Sell.”

The firm has downgraded AA from “Hold” to “Sell,” and has lowered its price target from $9 to $5.50. This price target suggests a 32% decline from the stock’s current price of $8.17.

Analyst Jorge Beristain commented: “Our downgrade is primarily driven by DB’s lower medium-term aluminum price outlook (12-13% lower in 2014-15 to $0.82 and $0.88/lb, respectively), which cuts 2014E and 2015E EPS by over half.”

Looking ahead, the firm has lowered its FY2013 EPS estimate from 46 cents to 27 cents per share. Revenue estimates have been lowered from $23.3677 billion to $22.903 billion.

Alcoa shares were down 25 cents, or 3.06%, during pre-market trading Wednesday. The stock has declined 5% YTD.

6 Ways You Invite Hackers to Steal Your Personal Information

Chances are you're not doing enough to protect your personal information from being stolen. "Everyone puts themselves at risk of hackers on a daily basis," says Jerry Irvine, chief information officer of Prescient Solutions and a member of the National Cyber Security Partnership Task Force.

SEE ALSO: 6 Things You Must Know About Identity Theft

Hackers use viruses and spyware to infiltrate computers and mobile devices to steal data, such as passwords, Social Security numbers and account information. They then can use that information to access your accounts and drain them, run up debt under your name or steal your entire identity.

If you think you aren't at risk of becoming a victim, consider these statistics: Identity theft is so widespread that someone becomes a victim every three seconds, according to a study by Javelin Strategy and Research. Thieves stole more than $21 billion from 12.6 million victims in 2012 by using their personal information. And it can take years for identity theft victims to repair their finances, according to the Privacy Rights Clearinghouse.

Irvine says that few mobile devices have any type of anti-virus solution. And anti-virus solutions for computers only protect against 30% of known viruses. Now you don't even have to click on an image or link on a Web site to inadvertently download a virus. By simply hovering over some links and images with your mouse, you can start a script that will gather info from your hard drive.

Although hackers are quite sophisticated when it comes to gaining access to personal data, Irvine says there are several ways you might be making it easier for them to access your information.

Using weak passwords. If you're using simple passwords for your accounts so you can remember them, you're making it easy for hackers to figure them out, too. Irvine recommends creating passwords with a minimum of ten characters that include numbers, symbols and upper- and lowercase letters. You can test the security of your passwords at Microsoft.com/security. Don't store these passwords in a file on your computer or mobile device that hackers could access by using spyware you might inadvertently install by clicking on links in spam e-mails, texts or Web sites. See Fix Your Passwords for tips on creating strong passwords and securely storing them.

Using the same password for more than one account. Plenty of people use a single password for multiple accounts. If a hacker figures it out, suddenly he has access to all of your accounts. Irvine says that, ideally, you should use different passwords for every account. But at least you should use different passwords for your financial accounts than you use for social network accounts.

Using public Wi-Fi. It's tempting to use free public Wi-Fi to get Internet access while you're away from home or work. But these shared networks make it easy for hackers to see everything you're doing. Irvine says. Use your phone's 3G or 4G service to access the Web for a more secure connection, or tether your computer to your phone to use its data plan rather than public Wi-Fi.

Creating user IDs on Web sites. Many retail sites offer customers the opportunity to create password-protected accounts with their billing information to make it easier for them to make purchases online. But Irvine says that you should never create user IDs on Web sites because if thieves hack that site, they'll have access to your credit card and other personal information. Log in as a guest, instead, he says.

Using multiple credit cards to make purchases online. The more credits cards you use, the more chances you give hackers to access your account information and use your entire credit limit, Irvine says. He recommends using a payment service, such as PayPal, to make all of your online purchases. And link only one credit card with a low limit to your PayPal account.

Revealing too much on social networks. When you announce your birthday, your address and even your pet's name on Facebook or other social network, you're giving identity thieves personal information they can use to tap your accounts. So resist the urge to reveal too much online. And when choosing answers to security questions for your accounts, Irvine says you shouldn't use your own information, such as the high school you went to that an ID thief can surmise from your Facebook profile. Use the name of a friend's high school, make up a name for a childhood pet or simply lie about your favorite cereal.

Altria Raises FY2013 Outlook (MO)

On Tuesday, tobacco company Altria Group Inc (MO) announced that it boosted its outlook for FY2013.

The company has lifted its valuation range from $2.51-$2.56 per share to a new range of $2.57-$2.62 per share. Wall Street analysts’ expect the company to earn $2.39 per share in fiscal 2013.

This change in guidance comes after the Arbitration Panel Decision on September 11, which involved the non-participating manufacturer adjustment dispute that six out of 15 states failed to enforce laws in 2003 that required escrow payments from the cigarette manufacturers that have not signed the Master Settlement Agreement. Altria’s subsidiary Philip Morris USA now expects to receive a credit of about $145 million.

Altria shares were mostly flat during pre-market trading Tuesday. The stock is up 12% YTD.

The Procter & Gamble Company Q4 Earnings Decline, but Beat Estimates; Revenue Misses (PG)

On Friday, consumer products company The Procter & Gamble Company (PG) reported that its earnings for the fourth quarter have dipped, but have come in above analysts’ estimates. 

PG’s Earnings in Brief

PG reported Q2 earnings of $3.43 billion, or $1.18 per share, down from $4.06 billion, or $1.39 per share, a year ago. Excluding special items, earnings were $1.21 per share, up from $1.22 per share last year. Analysts expected to see earnings of $1.20 per share. Revenue was $22.28 billion, up from $22.18 billion, but came in below analysts’ estimate of $22.33 billion. Looking forward, the company expects to see FY2014 EPS growth between 5-7% and net sales growth between 1-2%. Analysts are estimating earnings of $4.27 per share and $85.81 billion in revenue.

CEO Commentary

PG’s CEO, President and Chairman  A.G. Lafley said in a statement: ”We expect strong earnings growth in the second half of the fiscal year driven by solid top-line growth, moderating headwinds from foreign exchange, and productivity savings that build throughout the year.”

PG’s Dividend

The company declared its last quarterly dividend of 60.15 cents on January 14. This dividend will be payable to shareholders on February 18. PG will likely announced its next dividend in April. We expect the company to  raise its dividend when it declares its next dividend.

Stock Performance

Procter & Gamble shares were up 71 cents, or 0.91%, during pre-market trading Friday.

Top 5 Heal Care Companies For 2014

Precious metals have always been a solid investment choice, especially in times of economic uncertainty. They also offer superior protection against inflation, which cannot be said of almost all other reasonably liquid assets. Consequently, they outperform other sectors during a market downturn, as they have demonstrated in the recent past. Since they hold well diversified portfolios and are professionally managed, precious metals funds offer the most stable option for investments in this sector.

Below we will share with you 5 top rated precious metals mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all precious metals funds, investors can click here to see the complete list of funds.

Gabelli Gold AAA (GOLDX) seeks capital growth on a long-term basis. A majority of assets are invested in equity of those domestic and foreign companies whose primary operations are related to gold and gold bullion. The fund focusses on investing in undervalued companies which have the potential to provide high returns. The precious metals fund has a ten year annualized return of 8.43%.

Top 5 Heal Care Companies For 2014: Winnebago Industries Inc.(WGO)

Winnebago Industries, Inc. manufactures and sells recreation vehicles primarily for leisure travel and outdoor recreation activities. The company offers motor homes, which are self-propelled mobile dwellings that provide living accommodations for approximately seven persons and include kitchen, dining, sleeping, and bath areas, as well as a lounge; and optional equipment accessories, such as generators, home theater systems, king-size beds, upholstery, and interior equipment. It manufactures motor homes constructed directly on medium- and heavy-duty truck chassis, which include engine and drivetrain components; and on van-type chassis onto which the motor home manufacturer constructs a living area with access to the driver's compartment under the Winnebago and Itasca brand names, as well as panel-type vans with sleeping, kitchen, and/or toilet facilities under the Era brand name. The company also produces original equipment manufacturing parts, including extruded aluminum and other component products for other manufacturers and commercial vehicles. Winnebago Industries markets its motor homes through independent dealers primarily in the United States and Canada. The company was founded in 1958 and is headquartered in Forest City, Iowa.

Advisors' Opinion:

• [By Grace L. Williams]

  Recreational vehicle maker Winnebago Industries (WGO), which makes, you know, Winnebagos, is trucking today after reporting strong revenue and increased demand in its fourth quarter.

  AP

  For the period ended Aug. 31, Winnebago reported profit of $10.6 million, or 38 cents a share, down from $40.9 million, or $1.41 a share, a year earlier, while sales rose to $214.2 million in the quarter. Analysts polled by Thomson Reuters recently predicted earnings of 28 cents a share and sales of $206 million.

  Looking at the solid quarter and optimistic forecasts, Citigroup analyst Gregory Badishkanian raised estimates after noting several positive factors at the company including the current backlogs, which more than doubled, and dealer inventories, which were up 38%. He writes:

  The company highlighted two issues that appear to be diminishing: 1) towables division was dilutive for the year, but headed in the right direction with a breakeven quarter 2) shortage in Class A Gas chassis, though the issue should be resolved by mid-winter…

  Given strong margin and retail demand trends, we��e raising our 2014 and 2015 estimates by 26 cents each. We introduce our 2016 estimate of $ 1.60.

  Shares of Winnebago have gained 4.4% to $28.47 today at 3pm. Thor Industries (THO), which also makes recreational vehicles, has ticked up 0.1% to $57.56, Drew Industries (DW) has risen 0.3% to $48.74, Arctic Cat (ACAT) has advanced 1% to $59.87 and Polaris Industries (PII) has fallen 0.3% to $132.08.

• [By David Sterman]

  I took a close look at all of the companies that appeared in the first part of this series, and there were some great companies in the mix. If price were no object, I'd be a huge fan of:

  Oceaneering (NYSE: OII), which is prospering form the ongoing trends toward undersea naval warfare and undersea oil drilling. Oceaneering is poised to grow at a sustained double-digit pace, which is something few other defense contractors can say. Cree (Nasdaq: CREE): LED lighting is a revolutionary game-changer, and Cree's heavy emphasis on R&D is leading the charge towards ever-lower prices for these low-energy light sources that also have remarkable longevity compared to regular bulbs. Still, profit margin gains may be tough in a very competitive environment.  Polaris Industries (NYSE: PII): If Winnebago's (NYSE: WGO) recreational vehicles are suitable for retirees, Polaris has become the go-to name for activity-oriented vehicles. Notably, it has a revenue base that is four times larger than Winnebago as well. If S&P wants to position for future demographic trends, then Polaris is a great choice.

  I love these companies, but I don't love their stock prices, and I'd prefer to wait for some sort of pullback before singing their praises. That said, there are two investment ideas that hold great appeal on their own. If they get added to the S&P 500, then they are also set up for a timely trade.

Top 5 Heal Care Companies For 2014: Patheon Inc Com Npv Vtg Restric (PTI.TO)

Patheon Inc. provides drug development and manufacturing services to the pharmaceutical, biotechnology, and specialty pharmaceutical companies worldwide. It primarily offers commercial manufacturing outsourcing services and outsourced pharmaceutical development services. The company�s commercial manufacturing outsourcing services include the activities primarily relating to various sterile dosage forms, as well as solid, conventional, and specialized dosage forms. It also develops a range of specialized capabilities in high potency, controlled substances, and sustained release products. Its pharmaceutical development services comprise early development; pre-formulation, formulation, and development of dosage forms; manufacturing of development stage products during the regulatory drug approval process, including the manufacture of pilot batches; scale-up and technology transfer services designed to validate commercial-scale drug manufacturing processes; and development of analytical methods and delivery of analytical services. Patheon Inc. was founded in 1974 and is based in Mississauga, Canada.

Best Casino Stocks To Watch For 2015: NPS Pharmaceuticals Inc.(NPSP)

NPS Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutic products for gastrointestinal and endocrine disorders, and various medical needs. The company?s primary clinical programs include two therapeutic peptides to restore or replace biological functions comprising GATTEX, a Phase 3 clinical trial product for short bowel syndrome; and Natpara, a recombinant human parathyroid hormone 1-84, which is in Phase 3 clinical development trials. It also develops NPSP790 and NPSP795 calcilytic compounds that are in Phase I trials for the treatment of rare endocrine disorders. The company has collaborative and license agreements with Amgen Inc., Janssen, GlaxoSmithKline, Kyowa Hakko Kirin, and Nycomed Danmark ApS. NPS Pharmaceuticals, Inc. was founded in 1986 and is based in Bedminster, New Jersey.

Advisors' Opinion:

• [By Bryan Murphy]

  With just a quick look from a distance, NPS Pharmaceuticals, Inc. (NASDAQ:NPSP) looks like great stock. NPSP shares are up more than 200% year-to-date, even with the lull since the end of September. And, it looks like the media (as well as the market) has completely fallen in love with the company's flagship drug. As they say though, nothing lasts forever, and there are too many of the telltale signs that say this story-driven biotech runup has run its course and is ready to reverse.

• [By Jake L'Ecuyer]

  NPS Pharmaceuticals (NASDAQ: NPSP) was down, falling 10.78 percent to $29.58 after the company following a negative mention on Mad Money Thursday evening.�

Top 5 Heal Care Companies For 2014: Cosi Inc.(COSI)

Cosi, Inc. owns, operates, and franchises premium convenience dining restaurants. It offers squagels, sandwiches, hearth-baked quiches, oatmeal, salads, soups, appetizers, melts, flatbread pizzas, S?mores, fruit parfaits, wraps, and other desserts; coffees and other espresso-based beverages, seasonal fruit smoothies and specialty drinks, soft drinks, and flavored teas, as well as bottled beverages, such as still and sparkling waters. The company also sells alcoholic beverages comprising beer and wine. Its restaurants also offers catering service for the breakfast and lunch day parts, including breakfast baskets, lunch buffets, and dessert platters. As of August 26, 2011, it had 80 company-owned and 58 franchise restaurants in 17 states in the United States, the District of Columbia, and the United Arab Emirates. Cosi, Inc. was founded in 1994 and is based in Deerfield, Illinois.

Advisors' Opinion:

• [By John Udovich]

  At the end of last week, small cap sandwich stock Potbelly Corp (NASDAQ: PBPB) had a delicious surge of 120% for its IPO���meaning its probably a good idea to see whether its still worth getting in on the action plus take a look at the performance of peers�Cosi Inc (NASDAQ: COSI), Panera Bread Co (NASDAQ: PNRA) and Einstein Noah Restaurant Group, Inc (NASDAQ: BAGL) as Subway remains private. I should mention that competing with Subway in the sandwich business is a tall order as they have 40,229 restaurants in 102 countries and territories as of early September���making them the�largest single-brand restaurant chain and the largest restaurant operator globally. However, Potbelly Corp and its peers Cosi Inc, Panera Bread Co and Einstein Noah Restaurant Group aren�� slugging it out directly with Subway.

Top 5 Heal Care Companies For 2014: Pacgen Biopharmaceuticals Corpo (PGA.V)

Pacgen Life Science Corporation, a life science technology company, focuses on the commercialization of biomedical products and services. It offers lab equipment, such as Fit X1 401, an automated, high-precision pipetting system designed to replace the manual process of PCR/qPCR sample preparation; electronic pipettes; and A + Pipette Controller, an electronic pipette controller designed for use with graduated and volumetric glass and plastic pipets. The company also provides reagent kits. In addition, it develops novel therapeutic drug candidates. Its product candidates include PAC-113, an anti-fungal drug, which has completed a Phase IIb clinical trial for the treatment of oral Candidiasis; and PAC-G31P, a novel peptide therapeutic, which is in preclinical studies for the treatment of inflammatory diseases characterized by non-beneficial neutrophil. The company has license agreement with Demegen, Inc. to expand its exclusive worldwide rights and license to PAC-113 for ad ditional indications, including vaginal, dermatological, and ophthalmic applications. It was formerly known as Pacgen Biopharmaceuticals Corporation and changed its name to Pacgen Life Science Corporation in April 2012. The company was founded in 2004 and is headquartered in Vancouver, Canada.

Top 5 Heal Care Companies For 2014: Xiaoxiao Education Limited(XXL.AX)

Xiaoxiao Education Limited operates as a preschool education institution in China. It has 10 kindergartens and 1 professional comprehensive training school for children. The company?s schools provide parenting education for 0 to 3 year old children, preschool education for 3 to 6 year old children, and professional training programs for 2 to 12 year old children. Xiaoxiao Education Limited has 4,000 enrolled students and 4,000 additional children attending extra-curricular programs out of school hours and during holiday periods, as well as approximately 6,570 students attending short courses at its Hangzhou Binjiang Art Training school. The company was founded in 1996 and is based in Hangzhou, China.

Top 5 Heal Care Companies For 2014: ZipRealty Inc.(ZIPR)

ZipRealty, Inc., a residential real estate brokerage company, provides brokerage services to buyers and sellers in the United States. The company, through its Website ziprealty.com, provides access to Multiple Listing Services (MLS) home listings data, including pictures from the local MLSs; and allows consumers to receive an automatic email notification each time a property that meets their desired search criteria, is made available on the local MLSs. Its Website also offers neighborhood data, such as population, comparable home sales, average income, education level, occupation mix, cost of living, crime statistics, weather, school district information, maps, and driving directions; online images and virtual tours; schedule visits; and home offers. In addition, the company operates ZAP, a Web-based agent platform and customer relationship management system integrated to its Website. Its ZAP integrates and records consumer contact information and Website behavior, agent b ehavior, and transaction information into a common platform; and records relevant consumer behavior, such as logon frequency and times, specific homes viewed and printed, searches made by clients, requested visits to view homes, and online offers, as well as captures and stores agent activities, including agent email communications organized by clients. The company offers its services through its agents in Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Texas, Utah, Virginia, Washington, and Washington, D.C. ZipRealty, Inc. was founded in 1999 and is based in Emeryville, California.

Advisors' Opinion:

• [By Shaun Currie, CFA]

  ZipRealty (ZIPR) is a company that meets 5 of the 6 criteria listed above. The stock has fallen out of favor over the last several years as performance declined during the recession. The company has completed a major restructuring and recently returned to positive EBITDA margins. Operations of the company are further supported by a pickup in home sales in the US. There has also been significant insider buying over the past month, and the company trades at a deep discount to its competition. I believe the stock has at least 60% upside from its current price.

Top 5 Heal Care Companies For 2014: Vealls CP(VELCP.AX)

Vealls Limited engages in owning and operating a ski resort in New Zealand. Its Cardrona Ski Resort is located in the South Island of New Zealand. The company also operates the cattle breeding business located at the Clear Springs Station in New South Wales, Australia; and engages in the forestry activities, including the Oak forest (Foret de Leyde) near Moulins, France. In addition, it invests in real estate and negotiable securities. Vealls Limited is based in Toorak, Australia.

Top 5 Heal Care Companies For 2014: Brookfield Mortgage Opportunity Income Fund Inc (BOI)

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Is Time Warner Cable a Solid Investment?

With shares of Time Warner Cable (NYSE:TWC) trading around $134, is TWC 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

Time Warner Cable is a provider of video, high-speed data, and voice services in the United States, with systems located in five geographic areas: New York, the Carolinas, Ohio, Southern California, and Texas. The company offers its residential and business services customers numerous services over its broadband cable systems. With such a large and growing user base, look for Time Warner Cable to continue to see rising profits from its media, entertainment, and communications offerings.

Time Warner Cable Chair and CEO Rob Marcus has drawn a $160-per-share line in the sand. Marcus reiterated to Multichannel News that the No. 2 U.S. cable operator is not interested in Charter Communications’ $132.50-per-share bid for the company. ”We were very explicit: We’re not negotiating,” Marcus told Multichannel. “$160 is what it takes to get anything done.” Marcus went further to say that $160 must include $100 per share in cash with a “20 percent collar.” He mentioned, “If any of those elements are not there, then $160 is not interesting.”

Charter Communications made a $61 billion takeover bid for Time Warner Cable, but the company rejected the offer, with Marcus labeling the $132.50-a-share bid as a “low-ball offer.”

T = Technicals on the Stock Chart Are Strong

Time Warner Cable stock has been coasting higher over the past several years. However, 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, Time Warner Cable is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Time Warner Cable options	20.15%	10%	8%

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

	Put IV Skew	Call IV Skew
February Options	Flat	Average
March 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 minimal 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 Time Warner Cable’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Time Warner Cable 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)	-29.23%	14.69%	11.67%	-3.74%
Revenue Growth (Y-O-Y)	2.89%	2.70%	6.64%	9.85%
Earnings Reaction	2.79%	3.16%	-0.58%	-11.28%

Time Warner Cable has seen mixed earnings and increasing revenue figures over the last four quarters. From these numbers, the markets have had conflicting feelings about Time Warner Cable’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has Time Warner Cable stock done relative to its peers, Comcast (NASDAQ:CMCSA), Dish Network (NASDAQ:DISH), DirecTV (NASDAQ:DTV), and sector?

	Time Warner Cable	Comcast	Dish Network	DirecTV	Sector
Year-to-Date Return	-0.48%	2.51%	-5.73%	4.68%	1.24%

Time Warner Cable has been an average relative performer, year-to-date.

Conclusion

Time Warner Cable provides entertainment, voice, and high-speed data services to a growing customer base in the United States. The company chairman and CEO Rob Marcus has drawn a $160-per-share line in the sand. The stock has been moving higher over the past several years, but is currently trading sideways. Over the last four quarters, earnings have been mixed while revenues have been rising which has produced conflicting feelings among investors. Relative to its peers and sector, Time Warner Cable has been an average year-to-date performer. WAIT AND SEE what Time Warner Cable does this quarter.

Company Pension Plans Getting Safer Even as Number Declines

Among companies that continue to offer defined benefit retirement plans, shedding the risks associated with those plans has rapidly become a strategic objective. As company-sponsored pension plans have gotten better funded companies have focused on reducing pension risk.

The data comes from research conducted by Mercer Investment Consulting and CFO Research and the results were published on Thursday. According to the research, aggregate funded status of pension plans at companies in the S&P 1500 stood at 86% in May of this year, well above the all-time low of 70% in July of 2012.

Half of the survey's respondents have adopted fixed-income investment plans that sync up with the duration of pension-plan liabilities. More than 40% of respondents said their company shifts assets to lower-risk categories as the funding status of pension plans improves and a similar number have started allocating more of their funds to more stable fixed-income investments.

Far fewer — only 14% — have purchased annuities that transfer liabilities to a third party, but Mercer believes that the success of risk-transfer programs such as those undertaken in 2012 by Ford Motor Co. (NYSE: F), General Motors Co. (NYSE: GM), and Verizon Communications Inc. (NYSE: VZ) will encourage others to look closely at lump-sum distributions or purchasing annuities. A third of respondents said they are very likely/somewhat likely/will consider dumping defined benefit plans.

Transferring pension risk to a third party faces some headwinds though. Nearly 80% of respondents cited low interest rates as disincentive to either lump-sum distributions or annuity purchases. And while giant companies like Ford, GM, and Verizon have the heft to pursue these options, nearly half the survey respondents said that financial markets aren't interested in accepting risks from companies their size.

Shutting down defined benefits plans remains popular, however. In 2011, 59% of respondents had closed or frozen their defined benefits plans; another 45% did so between 2011 and 2013. And 6% more say they are "very likely" to close their defined-benefits plans within 2 years.

Bitcoin flaw could allow group to wrest control of currency

University researchers say they've found an unnoticed defect in Bitcoin that could undermine the whole system, turning the decentralized currency into a centralized one.

NEW YORK (CNNMoney) Bitcoin has an inherent flaw that could allow a powerful few to wrest control of the now-decentralized currency. All it would take is a group of cheaters.

That's according to a research paper released Monday by Cornell University post-doctoral fellow Ittay Eyal and Professor Emin Gün Sirer.

The flaw is due to the nature of how bitcoins are created -- people "mine" them by solving a complex puzzle with their computers. If used correctly,the system is set up so that someone guesses correctly every 10 minutes, and the winner gets 25 bitcoins. Because people compete against one another for the digital currency, bitcoins are mostly evenly distributed.

But bitcoin miners could exploit a weakness in the system that would give them a greater chance of getting bitcoins than rival miners: Solving a puzzle gives miners a much higher chance of solving the next one, and those solutions are typically stored in a public log called a "blockchain."

But solutions don't have to be publicized. If you solve a puzzle and keep it secret, you can start working on the next one and let everyone else keep mining in the wrong spot.

That unfair advantage becomes even more apparent when selfish, secretive miners group together and pool computing resources to solve puzzles. The bigger the group, the more frequently they win. If a group gets large enough, it could take control of the currency.

Related story: London Bitcoin exchange off to a rocky start

If that happens, bitcoins wouldn't be any different than dollars, yen and yuan -- currency whose supply is controlled by a powerful, central bank. The bitcoin control group could easily drive the value of the digital currency up or down by adding or withholding bitcoins from the system.

That could disrupt the very reason many have decided to use the four-year old currency, which represented a $2.6 billion market as of Monday morning. Many libertarians like the idea of a currency that has no government backing or centralized authority.

"No one wants to bring down Bitcoin," Eyal said. "But if you know you can increase your revenue by a bit, you're going to join the selfish pool."

Despite rampant fluctuations in in valuation, the price of bitcoins barely budged after the report was made public.

!   How I make money mining bitcoins

In the report, Eyal and Sirer say there already exist groups of miners that are big enough to take advantage of their selfish mining theory. And while they haven't seen anyone engage in that kind of strategy yet, it could be happening in the shadows.

Related story: Bitcoin mania is back! But is it a bubble?

As a solution, Eyal and Sirer suggest a bitcoin mining rule change: The total mining power of one group shouldn't be able to exceed one-quarter of the mining power of the bitcoin mining community as a whole. That tweak, which could be implemented with a simple software update, would prevent any one group from taking total control of the currency.

There are currently 11.9 billion bitcoins in circulation. Some bitcoin users tend to get more attention, such as those illicit buyers at online black markets like the recently closed Silk Road. They tend to be drawn to the anonymous nature of the currency.

But bitcoins have also attracted some major business interests. Baidu (BIDU), a Chinese web services firm, recently started accepting bitcoin payments. And venture capital firms have begun investing in startups, like Circle Internet Financial, that make bitcoin payment tools.

Warning: Stocks Are Overbought (And Here's What To Do)

Stocks are definitely overbought. Overbought markets occur when prices move up sharply, and based on current charts, prices appear to be too high.

 

This situation actually occurs fairly often. Traders might be tempted to enter a short trade expecting the gains to be at least partially reversed. But that idea has led to large losses for many traders over the years.

Prices might be irrational, but as traders, we need to remember that the fact that behavior is irrational is irrelevant. Economist John Maynard Keynes supposedly said, "Markets can remain irrational longer than you can remain solvent."

Traders use momentum indicators like the stochastics to decide when prices are overbought. The monthly chart of SPDR Dow Jones Industrial Average (NYSE: DIA) is shown below, and we can see that stochastics has been overbought for more than a year. Based on the stochastics indicator, we can see that bull markets do seem to stay irrational much longer than a short trader could stay solvent.

DIA is being used because it reflects the price changes in the Dow, which has a price history extending back more than 100 years. When using monthly data, it is usually best to use the Dow because it has so much history.

We can also test what happens after a stochastics buy signal. At the end of May, DIA gave a stochastics buy signal while the indicator was above 90. In the past, this signal has been followed by a brief period of underperformance and then significant outperformance.

The chart below compares the relative performance of buying after a stochastics buy signal when the indicator is above 90 on a monthly chart. Performance is relative to what the Dow has done at all other times. For example, if we normally see a three-month gain of 2% in the Dow, if the three-month performance is 4% after this buy signal, the relative performance would be 2.0. If the post-signal average gain is 1%, the relative performance would be 0.5.

In this chart, we see that six months after these buy signals, prices do begin to outperform. This is a visual representation of the idea that the buy signal is followed by a brief pullback that usually lasts about six months. After the pullback, six to 18 months after the initial signal, the Dow has performed significantly better than average.

Not all trades will be winners, but this indicator does offer reliable signals. One year after a stochastics buy signal in an overbought market, for example, the Dow has been higher 82.4% of the time.

Traders looking for a pullback in the stock market might get exactly what they expect. However, that pullback should be considered a buying opportunity rather than the start of a bear market.

Call options could offer an excellent way to trade this idea with less risk. Call options give the buyer the right to buy 100 shares of a stock at a certain price at any time before the option expires. Deep in-the-money calls are options with a strike price that is below the current market price. These calls are more expensive than out-of-the-money calls, which are trading above the current market price. One advantage to the more expensive options is that deep in-the-money calls are more likely to be profitable at expiration.

Calls on DIA with expiration dates in March are available. A call with a strike price of $145 is in the money right now and is trading at about $11.55. This option will be profitable if DIA trades above $156.55, or about 2% above the recent price. The loss on this trade is limited to the amount paid for the option, but a stop-loss should help reduce the risk.

Based on the stochastics buy signal, we expect DIA to trade up to at least $160 before next March. At that price, the call option would be worth at least $15.

We also expect a pullback and would be comfortable entering a buy-limit order to buy this option under $9. It should fall that low if DIA reached $150 on a pullback of about 3%.

Like we said, there's a chance we'll see a pullback soon, but it could get worse. There is a lot of discussion today that we are reaching the peak of a "triple top." The major indices are currently trading near critical levels. In fact, in the years 2000 and 2007, they peaked near these levels. 

However, there is a chance the market will continue higher, in which case, this order will never be filled. But this is a relatively low-risk, high-probability trade if the order is filled. If the order is not filled within 30 days, we recommend cancelling the order and moving on to the next trading opportunity.

Action to Take -->

-- Buy DIA March 2014 145 Calls at $9 or less

-- Set stop-loss at $6

-- Set price target at $15 for a potential 67% gain in seven months or less

This article was originally published at ProfitableTrading.com
Warning: Stocks Are Overbought (And Here's What to Do)

P.S. -- There is a lot more to say about the potential triple top that could send the stock market tumbling -- and how to make money regardless of what the market does. Click here for details.

76% of Advisors Use ETFs With Mutual Funds: Virtual ETF Conference Poll

At ThinkAdvisor’s virtual exchange-traded fund conference on Tuesday, a quick poll found that the vast majority of advisors now use some ETFs along with mutual funds and other vehicles in their client portfolios.

During the all-day live trade show, “ETFs: What Advisors Need to Know for Successful Portfolio Building,” 75.7% of several hundred attendees during the first of five panels reported that they now use ETFs with mutual funds and other investments. Only 6.6% reported that they use ETF-only client portfolios, and 17.8% said they don’t use ETFs at all in client portfolios but are considering them.

ThinkAdvisor editor Jamie Green, who moderated the first panel focused on the pros and cons of ETF investing, said that the ETF debate lives on, even though many advisors have become mainstream users of ETFs for their clients.

“Others aren’t fully convinced that they need ETFs at all,” Green said. “After all, index mutual funds have their own advantages, and many advisors are not interested in rapid trading of ETFs.”

Stepping forward to defend the use of ETFs in client portfolios was speaker Ron DeLegge (left), editor of ETFguide, who pointed out that ETFs now total $1.4 trillion under management, with 2008 being the only year in the last 10 years when the market hasn’t grown. In June 2013, assets decreased 4.0%, driven by a $15 billion drop in the international-emerging category.

DeLegge first went over the basics of ETFs, saying they offer the benefits of low expenses, trading flexibility and high tax efficiency, and they cover all major asset classes, including stocks, bonds, commodities, currencies and real estate.

“He who offers the lowest cost usually wins the race,” he said, though he acknowledged that “not everybody is a fan of ETFs out there.”

DeLegge noted that Vanguard founder John Bogle, for example, has said that ETFs are like handing an arsonist a match because they tempt investors to trade too often. But DeLegge then shared a slide of a Vanguard study of its own shareholders in 2012 that refutes the notion that investors have become day traders. Rather, it shows that buy-and-hold ETF investors outnumber buy-and-sell traders, at a rate of 83% for mutual funds and 62% for ETFs at Vanguard. Indeed, he said, Vanguard is an ETF leader, with approximately $300 billion under management.

“There are a number of companies that are now scrambling to offer ETFs,” DeLegge said. “Advisors should learn from their lead. You certainly don’t want to become an outdated relic.”

ThinkAdvisor’s virtual conference involved a total of more than 1,000 attendees, who interacted via private chats and message boards as well as at a conference center with keynote speakers, panel discussions, exhibitors’ booths and a networking lounge.

Learn more about ThinkAdvisor’s Virtual ETF conference.

TSS Grows Debit Processing in Ireland - Analyst Blog

Expanding its debit card portfolio in Ireland, yesterday Total System Services Inc. (TSS) entered into a strategic alliance with KBC Bank Ireland, which is part of the Europe's leading global financial services provider – KBC Group.

KBC Bank has a history of operations of over 40 years in the fields of banking and business development. This bank is currently armed with over 700 employees across Ireland's Dublin, Cork, Limerick, Belfast and Galway.

As per the deal, Total System will now process KBC Bank's debit card portfolio through its best-in-class TS2 platform. The partnership also complements the company's strategy to bolster its relationship with bank's customers as it plans to offer risk management, fraud avoidance and other support services on these cards.

Overall, the alliance is expected to strengthen the card processor's client base and payment processing network in Ireland. Moreover, the new contract should enhance Total System's payment volumes and a number of processed transactions, thereby supporting the financials.

Striding on the Global Growth Track

Total System has been strengthening its clientele by offering customized and flexible processing solutions to all its partners across the globe, primarily in the merchant acquiring space. Additionally, the company is making efforts to tap opportunities in the recovering markets through high-grade technology.

However, Total System is consistently challenged by strong competition, currency fluctuations along with stringent regulatory reforms, which have affected the pricing and credit allocation of the company. Yet, we believe that a healthy business model, strategic acquisitions, alliances and technical competence are expected to consistently drive growth within Total System. This in turn will enhance capital deployment to boost shareholder confidence. An optimistic guidance for 2013 and the recent NetSpend acquisition also boost optimism.

Total System is scheduled to relea! se its second quarter earnings after the closing bell on Jul 23, 2013. The Zacks Consensus Estimate for the upcoming quarter stands at 34 cents per share, down about 4% from the year-ago quarter. However, the Zacks Consensus Estimate for full-year 2013 is pegged at $1.42 per share, up 10.4% from 2012.

While Total System carries a Zacks Rank #3 (Hold), other strong performers in the financial sector include AmTrust Financial Services Inc. (AFSI), Heartland Payments Inc. (HPY) and Official Payments Holdings Inc. (OPAY). All these stocks carry a Zacks Rank #1 (Strong Buy).

Bank stocks lead the market higher

Click for more market data.

NEW YORK (CNNMoney) Stocks had a rough start this week, but the market seems to be finding its footing thanks to strong bank earnings.

The Dow Jones industrial average, the S&P 500 and the Nasdaq were all higher Wednesday, extending Tuesday's gains. The S&P 500 is within a few points of erasing its losses for the year.

CNNMoney's Tech 30 index was also higher, with Twitter (TWTR) and Apple (AAPL, Fortune 500) both up in early trading.

Bank of America (BAC, Fortune 500) boosted investor confidence by reporting better-than-expected earnings and revenue for the fourth quarter. The report follow solid earnings figures Tuesday from JPMorgan (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500). Shares of Bank of America rose on the news, as did major banks that have yet to report such as Goldman Sachs (GS, Fortune 500) and Citigroup (C, Fortune 500).

The financial sector is expected to have the best profit growth in the fourth quarter, according to FactSet Research. Overall, earnings for the companies in the S&P 500 are expected to be up 6.1% versus the fourth quarter of last year.

In economic news, producer prices increased 0.4% in December, the government said. Manufacturing activity in the New York area expanded at a rapid pace in January, according to the Federal Reserve Bank of New York. At 2:00 p.m., the Federal Reserve will release the latest edition of its Beige Book report, a compilation of data on regional economies.

Wednesday's reports "added to renewed market optimism," following solid December retail sales and business inventories data on Tuesday, said Michael Englund, an economist at Action Economics. Despite an unexpected slowdown in hiring last month, "the bulk of U.S. economic surprises remain upward," he added.

General Motors (GM, Fortune 500) shares fell even though the automaker announced on Tuesday that it will pay its first dividend since 2008. The stock was down because the company said Wednesday morning that it expects 2014 profit margins to be similar to last year and that restructuring costs for fixing problems in Europe are expected to be about $1.1 billion. The automaker also predicted most growth globally for the industry this year.

But shares of electric automaker Tesla Motors (TSLA) surged again after CEO Elon ! Musk told CNN late Tuesday that the company is on track to produce a cheaper, mass-market car in three years and still plans to offer a full-size pickup similar to the Ford (F, Fortune 500) F-150 in four to five years.

Shares of 3D printer maker ExOne (XONE) fell sharply after it warned late Tuesday that revenue would be far below its earlier forecasts. The warning follows disappointing guidance from 3D printer maker Stratasys (SSYS) earlier in the day. Fellow 3D printer companies 3D Systems (DDD) and Voxeljet (VJET) were down in early trading as well.

The main European stock market indexes were all up Wednesday afternoon. Burberry (BBRYF) shares surged in London after the luxury retailer reported a 14% jump in retail revenue in the third quarter, which includes the holiday season. Asian markets mostly closed the day with gains.

Best Casino Companies To Buy Right Now

Las Vegas Sands (NYSE:LVS) will report its 1Q 2013 earnings on May 1. Despite a slowdown in the Chinese economy last year, the company continued to do well in Macau, the world's biggest casino market. Given the success of Las Vegas Sands' integrated resorts in Macau and increased gaming revenues in China, we expect good results in the first quarter. However, growth in the company's Singapore operations is likely to be slow due to relatively strict government regulations and a decline in the number of foreign visitors

Riding High On Macau

For the first three months of 2013, Macau's gaming revenues surged 15% to $10 billion compared to the same period last year. In March alone, revenues were up 25% amounting to $4 billion (source). While Macau's strong growth will help the casino operators in the region, Las Vegas Sands in particular will be a key beneficiary as it has established a critical mass in the market with its diverse properties and resorts. This gives the company a competitive edge over the other players such as Wynn Resorts (NASDAQ:WYNN) and MGM Resorts International (NYSE:MGM).

Best Casino Companies To Buy Right Now: NanoTech Entertainment Inc (NTEK)

NanoTech Entertainment, Inc. (NanoTech), formerly Aldar Group, Inc., is a provider of gaming technology for the coin-op arcade, casino gaming and consumer gaming markets. The Company operates as a manufacturer, developing technology and games, and then licensing them to third parties for manufacturing and distribution. As of June 30, 2009, the Company�� products included MultiPin, Xtreme Rally Racing, NanoNET Online System, Pinball Wizard, Mot-Ion Adapter, Opti-Gun Adapter and Retr-IO Adapter. In April 2009, the Company acquired NanoTech Entertainment, Inc. In July 2013, NanoTech Entertainment Inc completed the acquisition of Clear Memories, Inc. of Napa California. Effective August 9, 2013, NanoTech Entertainment Inc acquired Worldwide Global Entertainment, a developer of prepackaged software.

The Company�� physics engine and motion sensors allow MultiPin to accurately recreate the experience of a mechanical pinball machine, while providing players with a variety of classic and modern pinball games to choose from. Xtreme Rally Racing is a driving machine that features three modes of game play: Xtreme Off-Road-Race Head to Head against other players and the computer to checkpoints while driving anywhere on the map with no preset course; Timed Rally Stages-Classic Rally Racing on real world courses. Players will be able to race in five different countries on real world rally courses, and Xtreme Stadium Racing-Custom Stadiums designed for Xtreme racing, including a figure eight multi-lap course with huge jumps. NanoNET Online System is remote operator control of machines, including diagnostics, accounting reports, and automatic software updates and enhancements downloaded over the net.

The Company has created the input device designed to give the pinball players a way to experience real pinball controls on their personal computer. Based on the technology developed for the MultiPin product it has built a controller that lets people play pinball using traditional controls and! the ability to shake and nudge the table. The Mot-Ion adapter is a universal serial bus (USB) adapter that allows do it yourself Pinball enthusiasts to build their own cabinet using real pinball controls providing analog inputs for nudging and bumping. The OptiGun adapter is a USB adapter that allows players to connect Arcade Light Guns to any USB based system. The Retr-IO adapters provide a standard JAMMA interface for USB based systems.

Advisors' Opinion:

• [By Bryan Murphy]

  Call them hunches (because that's all they are), but now would be a great time to get out of a NanoTech Entertainment, Inc. (OTCMKTS:NTEK) position and/or get into an ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD). NTEK looks like its reached its maximum potential - for the time being - while ACAD looks like it's ready to start rolling higher again.

• [By Peter Graham]

  Nyxio Technologies Corp (OTCMKTS: NYXO), COREwafer Industries Inc (OTCMKTS: WAFR) and NanoTech Entertainment, Inc (OTCMKTS: NTEK) are three small cap stocks in some very diverse industries. In fact, one of these stocks just bought a 3D ice sculpture business. So will investors see their investment melt with that small cap stock�along with the other two? Here is a closer look to help you decide for yourself:��

Best Casino Companies To Buy Right Now: Pinnacle Entertainment Inc.(PNK)

Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Sean Williams]

  Time to make the switch
  If I could name a sector that I'd certainly tread lightly around considering that consumers are tightening their wallets, it would be the casino sector. Casino companies rely on loose wallets and vacations to drive profits. This is why I feel it could be the time to say goodbye to casino and race track operator Pinnacle Entertainment (NYSE: PNK  ) near its 52-week high.

• [By Ben Levisohn]

  Pinnacle Entertainment (PNK) has gained 56% this year; Las Vegas Sands (LVS) has climbed 38%. And Deutsche Bank has nice things to say about both today.

  Bloomberg

  First Pinnacle. Deutsche Bank’s Carlo Santarelli ponders the stock’s big move and comes away still seeing value in its shares. He writes:

  When we upgraded PNK in April, our thesis centered on the FCF strength of the combined entities [Pinnacle completed its acquisition of Ameristar Casinos on Aug. 14], a handful of favorable catalysts, easing regional gaming comps, & an inexpensive relative valuation. Given the shares’ sizeable move since then, we believe it is worth revisiting the investment case. Post the announcement of several asset sales and the closing of the transaction, we are adjusting our estimates, raising our PT to $30 from $24, and maintaining our bullish view at current levels given what we still believe to be an attractive free cash flow valuation, meaningful potential synergy realization beyond the $40 mm of announced benefits, and a free option on a lagging regional recovery.

  Santarelli also revisited Las Vegas Sands and there too, he likes what he sees. He writes:

  With…LVS at [a share price level] that have been challenging to break from over the last year plus, we believe this time is different and hence we see continued upward momentum…In the case of LVS, we see; 1) meaningful mass market strength continuing through year end, setting the stage for upward company and market estimate revisions for 2014, 2) continued cash flow appreciation and capital returns serving as downside protection and positive catalysts, and 3) continued shared gains, largely driven by table optimization and mass market strength, driving both estimates and sentiment.

  He also likes Wynn Resorts (WYNN), despite its 34% gain.�Santarelli writes:

  As for WYNN, we believe near-term estimates continue to take a back seat to capital return

5 Best Blue Chip Stocks To Own Right Now: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:

• [By M. Joy, Hayes]

  Industry trends
  Other businesses in the industry also have copious related-party transactions. In particular, founder-led businesses Wynn Resorts (NASDAQ: WYNN  ) and Boyd Gaming (NYSE: BYD  ) �reported a large number of such transactions in their 2013 proxies, including employment of relatives, employee use of company services, and employee use of company-owned property. MGM Resorts International (NYSE: MGM  ) , on the other hand, didn't have to report any related-party transactions in its 2013 proxy.

• [By Travis Hoium]

  Earnings from Boyd Gaming (NYSE: BYD  ) surprised investors last week, but there's still a lot of fundamental weakness for the company. Revenue is declining across the country as more supply is added to the market, and the only way to grow is through acquisitions. The Fool's Erin Miller sat down with Travis Hoium to see how to play the gaming market now.�

• [By Travis Hoium]

  What: Shares of Boyd Gaming (NYSE: BYD  ) jumped 10% today after the company got an analyst upgrade.

  So what: Morgan Stanley upgraded shares to overweight today, and gave the stock a $12 price target. The analyst cited the potential for online gaming as the driver of the stock, potentially bringing as much revenue to the industry as Las Vegas and Atlantic City combined. �

• [By Dan Caplinger]

  The real question is whether Zynga can hold off experienced casino operators if online gambling becomes a reality. Already, alliances are forming, with Boyd Gaming (NYSE: BYD  ) and MGM Resorts (NYSE: MGM  ) having linked up with bwin.party -- the same company Zynga tapped for its real-money Zynga Poker -- to help Boyd take advantage of newly legal online gambling in New Jersey. Zynga has the obvious edge with its social savvy, but established casino companies will have huge incentives to defend their turf if Zynga starts to make a serious dent in the industry.

Best Casino Companies To Buy Right Now: Umax Group Corp (UMAX)

Umax Group Corp., incorporated on March 21, 2011, is a development-stage company. The Company focuses to develop and distribute its product to the arcade and entertainment industry. The Company�� products include Rocket Launch, is Strength testing game which allows players to test their pushing/ throwing strength; Space Hockey, is a two player hockey game - each player must score as many as possible goals and Boxer, is a Simple punch testing game: insert coin/token/bill, press start button, hit the punch bag, wait for result, and try to beat opponent�� score or high score.

As of April 30, 2013, the Company had no revenues. The Company has developed its business plan, and executed exclusive distribution contract GEO a private enterprise, where it engages GEO as an independent contractor for the specific purpose of developing, manufacturing and supplying games for the Company.

Best Casino Companies To Buy Right Now: MGM Resorts International(MGM)

MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Dan Caplinger]

  On Thursday, MGM Resorts (NYSE: MGM  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

• [By Monica Wolfe]

  MGM Resorts International (MGM)

  Paulson�� fifth largest holding is in MGM Resorts where he maintains 29,800,000 shares of the company�� stock. His position makes up for 3.9% of his total portfolio and 6.09% of the company�� shares outstanding.

• [By Travis Hoium]

  Any thought that the Las Vegas gaming market would recover quickly after the recession has long since been lost, but there is a slow and steady recovery taking place in Sin City. High-end operators Las Vegas Sands (NYSE: LVS  ) and Wynn Resorts (NASDAQ: WYNN  ) have been seeing improved results as wealthy customers return to the casinos, but the lower end of the market, where MGM Resorts (NYSE: MGM  ) and Caesars Entertainment (NASDAQ: CZR  ) play, has been choppy to say the least.

• [By Monica Wolfe]

  MGM Resorts International (MGM)

  Paulson�� fifth largest position is in MGM Resorts International. The guru holds on to 34 million shares of the company�� stock, representing 3.5% of his total portfolio and 6.94% of the company�� shares outstanding.

Best Casino Companies To Buy Right Now: Caesars Entertainment Corp (CZR)

Caesars Entertainment Corporation, incorporated on November 2, 1989, is a diversified casino-entertainment provider. The Company�� business is primarily conducted through a wholly owned subsidiary, Caesars Entertainment Operating Company, Inc. (CEOC), although certain material properties are not owned by CEOC. As of December 31, 2012, it owned, operated, or managed, through various subsidiaries, 52 casinos in 13 United States states and seven countries. The majority of these casinos operate in the United States, primarily under the Caesars, Harrah��, and Horseshoe brand names, and in England. In November 2012, the Company sold its Harrah's St. Louis casino to Penn National Gaming, Inc. In December 2012, the Company purchased all of the net assets of Buffalo Studios, LLC, a social and mobile games developer and owner of Bingo Blitz.

The Company�� casino entertainment facilities include 33 land-based casinos, 11 riverboat or dockside casinos, three managed casinos on Indian lands in the United States, one managed casino in Cleveland, Ohio, one managed casino in Canada, one casino combined with a greyhound racetrack, one casino combined with a thoroughbred racetrack, and one casino combined with a harness racetrack. The Company�� land-based casinos include nine in England, two in Egypt, one in Scotland, one in South Africa and one in Uruguay. As of December 31, 2012, its facilities had an aggregate of approximately three million square feet of gaming space and approximately 43,000 hotel rooms. In southern Nevada, Caesars Palace, Harrah�� Las Vegas, Rio All-Suite Hotel & Casino, Bally�� Las Vegas, Flamingo Las Vegas, Paris Las Vegas, Planet Hollywood Resort and Casino, The Quad Resort & Casino (formerly the Imperial Palace Hotel and Casino), Bill�� Gamblin��Hall & Saloon, and Hot Spot Oasis are located in Las Vegas and draw customers from throughout the United States. Harrah�� Laughlin is located near both the Arizona and California borders and draws customers primarily from! the southern California and Phoenix metropolitan areas and, to a lesser extent, from throughout the United States through charter aircraft. In northern Nevada, Harrah�� Lake Tahoe and Harveys Resort & Casino are located near Lake Tahoe and Harrah�� Reno is located in downtown Reno. These facilities draw customers primarily from northern California, the Pacific Northwest, and Canada.

The Company�� Atlantic City casinos, Harrah�� Resort Atlantic City, Showboat Atlantic City, Caesars Atlantic City, and Bally�� Atlantic City, draw customers primarily from the Philadelphia metropolitan area, New York, and New Jersey. Harrah�� Philadelphia (formerly Harrah's Chester) is a combination harness racetrack and casino located approximately six miles south of Philadelphia International Airport and draws customers primarily from the Philadelphia metropolitan area and Delaware. The Company�� Chicagoland dockside casinos, Harrah�� Joliet in Joliet, Illinois, and Horseshoe Hammond in Hammond, Indiana, draw customers primarily from the greater Chicago metropolitan area. In southern Indiana, it owns Horseshoe Southern Indiana, a dockside casino complex located in Elizabeth, Indiana, which draws customers primarily from northern Kentucky, including the Louisville metropolitan area, and southern Indiana, including Indianapolis. In Louisiana, the Company owns Harrah�� New Orleans, a land-based casino located in downtown New Orleans, which attracts customers primarily from the New Orleans metropolitan area. In northwest Louisiana, Horseshoe Bossier City, a dockside casino, and Harrah�� Louisiana Downs, a thoroughbred racetrack with slot machines, both located in Bossier City, cater to customers in northwestern Louisiana.

The Company owns the Grand Casino Biloxi, located in Biloxi, Mississippi, which caters to customers in southern Mississippi, southern Alabama, and northern Florida. Harrah�� North Kansas City dockside casino draws customers from the Kansas City metropolitan ar! ea. Harra! h�� Metropolis is a dockside casino located in Metropolis, Illinois, on the Ohio River, drawing customers from southern Illinois, western Kentucky, and central Tennessee. Horseshoe Tunica, Harrah�� Tunica, and Tunica Roadhouse Hotel & Casino, dockside casino complexes located in Tunica, Mississippi, are approximately 30 miles from Memphis, Tennessee and draw customers primarily from the Memphis area and, to a lesser extent, from throughout the United States through charter aircraft. Horseshoe Casino and Bluffs Run Greyhound Park, a land-based casino and pari-mutuel facility, and Harrah�� Council Bluffs Casino & Hotel, a dockside casino facility, are located in Council Bluffs, Iowa, across the Missouri River from Omaha, Nebraska. At Horseshoe Casino and Bluffs Run Greyhound Park, the Company owns the assets other than gaming equipment, and leases these assets to the Iowa West Racing Association (IWRA), a nonprofit corporation, and it manages the facility for the IWRA under a management agreement expiring in October 2024. The license to operate Harrah�� Council Bluffs Casino & Hotel is held jointly with IWRA, the qualified sponsoring organization.

The Conrad Resort & Casino located in Punta Del Este, Uruguay (the Conrad), draws customers primarily from Argentina and Uruguay. In November 2012, the Company announced that it had entered into a definitive agreement with Enjoy S.A. (Enjoy) to form a strategic relationship in Latin America. Under the terms of the agreement, Enjoy will acquire 45% of Baluma S.A., its subsidiary, which owns and operates the Conrad, and the Company will become a 10% shareholder in Enjoy upon consummation of the agreement. Upon the closing of the transaction, which is subject to certain conditions, including the receipt of all regulatory and governmental approvals, Enjoy will assume primary responsibility for management of the Conrad. Enjoy will have the option to acquire the remaining stake in Baluma S.A. between years three and five following closing. The cl! osing of ! the transaction remains subject to a number of conditions, including regulatory and governmental approvals in both Uruguay and Chile.

The Company owns four casinos in London: the Sportsman, the Golden Nugget, The Playboy Club London, and The Casino at the Empire. Its casinos in London draw customers primarily from the London metropolitan area, as well as international visitors. The Company also owns Alea Nottingham, Alea Glasgow, Alea Leeds, Manchester 235, Rendezvous Brighton, and Rendezvous Southend-on-Sea in the provinces of the United Kingdom, which primarily draw customers from their local areas. Pursuant to a concession agreement, it also operates two casinos in Cairo, Egypt, The London Club Cairo (which is located at the Ramses Hilton) and Caesars Cairo (which is located at the Four Seasons Cairo), which draw customers primarily from other countries in the Middle East. Emerald Safari, located in the province of Gauteng in South Africa, draws customers primarily from South Africa. It owsn and operates Bluegrass Downs, a harness racetrack located in Paducah, Kentucky.

The Company owns three casinos for Indian tribes: Harrah�� Phoenix Ak-Chin, located near Phoenix, Arizona, Harrah�� Cherokee Casino and Hotel, and Harrah�� Rincon Casino and Resort, located near San Diego, California. The Company manages Caesars Windsor, located in Windsor, Ontario, which draws customers primarily from the Detroit metropolitan area, Horseshoe Cleveland casino in Ohio, which it manages for Rock Ohio Caesars LLC (ROC), a venture with Rock Ohio Ventures, LLC (Rock Gaming), in which it has a 20% equity interest, and the Horseshoe Cincinnati casino in Ohio for ROC for a fee under a management agreement that will expire in March 2033. It also has a minority interest in Sterling Suffolk Racecourse, LLC (Suffolk Downs), which owns a horse-racing track in Boston, Massachusetts, and the right to manage a future gaming facility. The Company also owns ans operates a golf course on 175 acres of prime real! estate t! hrough a land concession on the Cotai strip in Macau.

Advisors' Opinion:

• [By Travis Hoium]

  What: Shares of Caesars Entertainment (NASDAQ: CZR  ) jumped 15% today after saying it was continuing a plan to offer shares in a spinoff.

• [By Rick Munarriz]

  Paula Deen has seen her future earnings prospects dim after her admission of using a racial slur. She lost her show. Several retailers have stopped stocking the celebrity chef's products. However, Deen has also lost lucrative endorsements with casino operator Caesars Entertainment (NASDAQ: CZR  ) and packaged pork products producer Smithfield Foods (NYSE: SFD  ) .

• [By AlphaStreetResearch]

  Caesars Entertainment Corporation (CZR) is a highly overvalued gaming, hotel, and entertainment company with deteriorating fundamentals on all levels in a highly competitive environment. The company's stock has seen a massive run to the upside on the coattails of other casino and entertainment companies in the space. A considerable catalyst for the push higher in these stocks is the good news coming out of Macau, but this is an area where Caesars has absolutely no exposure and will be locked out of for the foreseeable future after failing to take appropriate licensing measures. Below is our introduction into the business model, its weaknesses, and the new selling or shorting opportunity that exists for CZR after the recent appreciation in share price. Investors will soon realize that there is little upside value in this company and that there are much better opportunities in this space. The company is now amidst a major struggle from a debt standpoint with major deadlines approaching over the next year and a half. The company is in no position to thrive going forward unless major steps are taken to overhaul the company's capital structure. Caesars Entertainment has a market cap of $3.19 Billion after the stock has moved up over 225% year to date and reports its next quarter on October 31, 2013. With this in mind, we value CZR at $21.00 by year-end of 2013 and $14.00 by August 1, 2014, a decrease of 40% from current levels. We will later highlight: