Top Blue Chip Companies To Own For 2014

After the Dow Jones Industrial Average (DJINDICES: ^DJI  ) charged to a new record high yesterday on the back of strong economic data, the blue chips gave back exactly all of those gains today, falling 106 points, or 0.7%. There was no major news dragging the Dow down, but fear of the Fed's curtailing its stimulus program has hung in the air for the past week, and investors also seem to feel the market rally may have gotten ahead of itself as major indexes are already up more than 15% this year.

Ten-Year Treasury Yields (INDEX: ^TNX) also climbed to as high as 2.23% last night, their highest mark in more than a year, which seems to have provoked a flight from dividend stocks to the safer T-notes. The Fed's murmurs on cutting its bond-buying program also seem to have prompted the rise in treasury yields as loose monetary policy is generally bad for bond investors since it can cause inflation. The benchmark bond yields are up more than 10% since Fed Chairman Ben Bernanke's speech last Wednesday.

Top Blue Chip Companies To Own For 2014: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:

• [By Paul]

  IBM. Emerging markets are a big growth driver for this computer systems and software provider. Not only that, Resendes says, IBM has "a bullet-proof balance sheet that will allow it to weather the current storm and position it for superior growth and profitability in the long term." He thinks the stock, which recently traded at $93, is worth $120 a share: ''There are some obvious companies that offer much bigger discounts, but you have to incorporate the safety factor. You're getting a premium company here that's a good spot to be in within the tech space."

• [By Peter Hughes]

  International Business Machines (IBM) -- our aggressive pick for the year -- is one of the world's most dominant technology companies, with annual revenues of $105 billion and net income of $16 billion.

Top Blue Chip Companies To Own For 2014: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:

• [By Victor Mora]

  Visa strives to help consumers, companies, governments, and other entities by providing methods of easy transaction worldwide. The company recently reported earnings that made investors happy, and the stock is now trading near all-time high prices, with still more room to rise. Over the last four quarters, earnings and revenue figures have been increasing, which has pleased investors in the company. Relative to its strong peers and sector, Visa has been an average year-to-date performer. Look for Visa to continue to OUTPERFORM.

• [By Rebecca Lipman]

   Operates retail electronic payments network worldwide. Market cap of $82.48B. EPS growth (5-year CAGR) at 15%. According to Morgan Stanley: "Global penetration of electronic payments remains low with 85% of the world's transactions still cash-based, leaving ample runway to support healthy growth prospects through (at least) 2015."

• [By Ed Carson]

  The holiday season was hit or miss for many retailers, but indicators are that consumers were using plastic. Visa shares have risen steadily for the past seven months, with a strong 6% gain so far in 2013. Even in America, consumers continue to shift more from cash and checks to credit and debit cards. Overseas, consumers are adopting plastic, while some are bypassing cards and going straight to mobile payments. Visa wants to make sure it's part of that mobile solution.

  Visa earnings growth has decelerated for the past two quarters from 30% to 24% to 21%. Revenue growth in the latest quarter picked up to 15%, matching the best gains of the past two years.

• [By Charles Sizemore]

  One of the “big picture” economic themes that I expect to play out over 2011 and beyond is the secular shift to a global cashless society.?Though the process is well on its way in the U.S. and Europe, roughly 40% of all transactions are still made with cash and paper checks according to Barron’s.

  This means that even in “boring” developed markets, there is ample room for growth in electronic payments. And there is no better company to benefit from this trend than credit card giant Visa (NYSE: V).

Top Gold Stocks To Own For 2014: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:

• [By David Eller]

  Apple (Nasdaq: AAPL) is loved by its customer base, but it remains a hardware company. After being disappointed by Dell and HP throughout 2012, professional investors have not been willing to acknowledge that Apple may be different, and that traditional hardware margin compression may not be in store for Apple. The fact is that Apple is selling a closed ecosystem of products, not commodity products that interact with third-party hardware. This is similar to IBM’s early days, but with one major difference: Apple provides a better user experience for its customers. Estimates as well as expectations have come down over the last two quarters, and Apple is now trading at less than 10x out year earnings. The company merely needs to execute on its current product line to meet estimates and see a dramatic increase in share price. If it executes on a revised Apple TV product or builds out a Netflix-like, on-demand content offering, these new revenue streams would dramatically increase Apple’s earnings potential. It seems strange but a combination of execution and new product offerings at a time when expectations (and valuation) are low could drive 50% upside to its existing massive valuation.

• [By Jim Jubak]

   Not all my picks for 2013 are riding trends. Some, including Apple (AAPL), make their own trends. If Apple's remarkable and maddening stock performance in 2012 demonstrated anything, it was that this stock dances to its own music. Apple shares are capable of climbing when everything else is tumbling and of plunging while the rest of the market is slowly moving ahead.

  The stock ended 2012 in deep retreat as sentiment, rather than fundamentals, turned against it. (And sentiment on this baby can quickly go into reverse.) Apple fell from $589 on Nov. 11 to $509 on Dec. 14 -- and that's after a plunge from $702 on Sept. 19 to $526 on Nov. 15.

  Investors sold Apple at the end of 2012 on downgrades from Wall Street analysts that cited order reductions to Apple suppliers. But curiously, sellers seem not to have read all the way through these opinions. For example, the analyst at Canaccord Genuity who cut his target price to $750 from $800 (while maintaining a buy rating) wrote that reduced orders to iPhone suppliers could be a result of softer-than-expected sales in international markets or Apple's intention to launch a new iPhone model in June. Other technology analysts,most notably Horace Dediu on Asymco, have argued that Apple is moving to a six-month cycle from a new-model-every-year cycle. This would be a huge change, and I find the argument convincing.

• [By Roberto Pedone]

  Finally, we're revisiting Apple (AAPL) this week. Last week, Apple was just starting to break out above it's the downtrending resistance line that's held shares lower for months. And sure enough, in the sessions that have followed, Apple has quietly made a move to test its last swing high at $466.

  That price is the nearest important resistance level for the stock; traders should treat a move through $466 as a buy signal. If Apple's downtrend is truly broken, we'll want to see the stock make a series of higher lows and higher highs. Now, the $436 billion firm is finally in a position where it can start to do that. This week's price action could get interesting for Apple bulls.

  I'm still recommending buyers keep a protective stop on the other side of the 50-day moving average; it should start looking like a decent proxy for support when a move through $466 happens.

• [By Geoff Gannon] bott Laboratories (ABT), Autodesk (ADSK), Cisco (CSCO) and Exelon (EXC). Others were ideas collected from places like news, etc.
  
  ��The ranking exercise (is) based on growth and fundamental analysis. EXC ranks at the bottom in both analyses��op 4 results are Apple, BHP Billiton (BHP), Mosaic (MOS) and Rio Tinto (RIO). MOS was eliminated as it has one year of negative FCF.
  
  Since AAPL is listed as No. 1, I went back and looked at P/E when I bought it at $333 in April and May 2011. The P/E was 11 - 13 times. It is currently 15 times��I think the iPhone 4s plus Sprint network addition plus iPad plus enterprise adoption of Mac will provide an impressive fabric of earning growth that is sustainable.
  
  The other two on the list are basic materials, they could be��good long-term to my stock portfolio. Assuming scarcity as their global trend (need to learn more here.)
  
  From the fundamental analysis: Rio is cheaper than BHP. But, RIO is qualitatively inferior when compared to BHP (ROIC, ROE, ROA). I have not looked at Vale (VALE), so maybe next weekend I will continue this exercise with VALE.
  
  I am not confident what the next step can be.
  
  Should I do more work or buy AAPL or EXC?
  
  Thank you very much.
  
  Ning
  
  (I should mention here that Ning included some very extensive Excel tables with this email.)
  
  Those are some extensive tables you included there. They are thorough. But I think the next step is not quantitative. It is qualitative. I would first look at the stocks you already own and feel you know best.
  
  This sounds like Apple (AAPL) and Exelon (EXC).
  
  I may be wrong about that. But it sounded to me like you had a lot of basic materials stocks show up for purely quantitative reasons, while you yourself didn�� have a strong feeling whether buying basic materials was a good idea or not. It could be. But you didn�� seem to have any special insight there. Am I right?
  
  Where you did have some special insight ��or at lea! st a very clear opinion ��was on Apple. Now, normally I wouldn�� encourage anyone to start with one of the most talked about, written about, gossiped about companies out there.
  
  Everybody has an opinion on Apple. Everybody knows the company. It is hardly a hidden gem. But it might be a gem in plain sight. And it sounds like you have some ideas about Apple beyond the numbers. So, that�� where you should start.
  
  The other company it sounds like you��e interested in is Exelon. Part of the reason why I�� saying you sounded interested in doing more work on Exelon is that you talked about the stock despite it finishing at the bottom of your purely quantitative comparison.
  
  Is that really a good sign? Am I really saying you should spend more time studying a company that finished at the bottom of a comparison you drew up?
  
  Here�� what I�� saying. You did a wonderful quantitative comparison of some very different stocks. A bunch of the stocks you��e got there are basic materials stocks. This should tip you off that something is ��amiss. When you do a purely quantitative survey of stocks you��e casting a net. When you get back a list of stocks that are all in the same industry, you need to take a good, long pause.
  
  You may not be measuring what you think you��e measuring. Or at least you may not be catching what you wanted in that numerical net you threw.
  
  I think Exelon and Apple are a good place to start.
  
  They are very different companies. That's good. Apple is a very high profile company. While Exelon is not. Both are potentially very interesting companies.
  
  You could argue that either has a wide moat.
  
  I wouldn't disparage the quality of either business relative to its peers. However, I think the next step ��for me at least ��would be to look at the industries they operate in. Are Apple and Exelon predictable? Do they have sustainable competitive advantages ��especially in regards to operating margins and return on equity. ! Look at t! he stocks found in GuruFocus�� Buffett-Munger Screener. Compare the stocks you��e interested in with those companies. Not just quantitatively, but qualitatively as well. Right now, it doesn�� look like either Apple or Exelon score very high in terms of business predictability (as GuruFocus measures it). Again, that�� a purely quantitative judgment ��like your own Excel tables ��but it�� worth keeping in mind.
  
  I��l tell you how I use quantitative measures. I don�� think of them as giving me the whole picture. I like to think of them more like vital signs. They are alerts. They let me know what areas of a stock I need to study more thoroughly. For example, Apple gets a 1-Star business predictability rating. Does that mean it�� a bad, unpredictable company?
  
  Absolutely not. It just means that the trajectory Apple has had these last 10 years hasn�� been predictable. It has been phenomenal.
  
  So you need to focus ��this is always true, but it�� especially true with Apple ��on whether or not the current level of sales, earnings, etc., are sustainable for the long-term. In Apple�� case, this means you need to do qualitative analysis. Probably competitive analysis.
  
  The industry Apple operates in ��consumer electronics ��is not an especially predictable one. It is not one where competitive advantages ����oats����tend to be especially durable. That doesn�� mean that Apple can�� maintain its terrific position. It doesn�� mean Apple lacks a moat. It just means that you need to investigate that issue.
  
  Okay. Another good question to ask is what the risks are. What happens if your assessment of a company is wrong? What if you think Apple has a wide moat and it doesn��? What if you think a barrel of oil will be $150 in 2013 and it ends up being $50? Often, investors focus on the probability of an event. That�� important. But it�� not more important than thinking about what happens if your assessment is wrong. Maybe $150 a barrel oil ! is way mo! re likely than $50 a barrel oil. But ��no matter how sure you felt about the future price of oil ��would you really buy a stock that could go to zero if oil stayed at $50 for any length of time? Probably not. Likewise, however strongly you feel about Apple�� ��oat��as of this moment ��it�� important to be honest about what would happen to the stock (and your portfolio) if Apple�� moat were breached.
  
  I wrote about mean reversion in one of my net-net posts. My point was that when you buy a company that's very cheap relative to its liquid and/or tangible assets any movement toward that company doing "about average" relative to American business generally is a positive for you. Well, these two stocks ��Apple and Exelon ��are far from net-nets. Any movement towards an "about average" business performance for stocks like Apple and Exelon will be very, very bad for you. That is because you are ��in both cases ��paying a high price to liquid and tangible assets (relative to the price you could buy many of their peers at).
  
  That doesn't mean they are bad businesses. An insurer or bank that trades at a premium to tangible book value may be quite a bargain if it is something like Progressive (PGR) or Wells Fargo (WFC).
  
  The important thing is not to confuse a temporarily wonderful competitive position with a competitive position like PGR or WFC that can probably be maintained for many, many years.
  
  You may disagree with me here, but I think in the case of Apple you are really betting on the organization. And in the case of Exelon you are betting on the assets. Basically, you are saying that Apple's brand and people and culture working together are going to achieve things ��like higher returns on investment ��than competitors who seek to do the same thing. In the case of Exelon, I think you are saying that their assets are lower cost (higher margin) generators of power than their competitors. In fact, you are saying they are so much more efficient that it is wort! h paying ! a substantial premium to tangible book value.
  
  I don't disagree with either claim. I think Apple has a superior organization. And Exelon has superior assets.
  
  Exelon's assets are clearly carried at far below their economic value. So the issue with Exelon is how to value those assets.
  
  Have you read Phil Fisher's "Common Stocks and Uncommon Profits?"
  
  It is a good book to read if you are thinking about investing in Apple.
  
  And "There's Always Something to Do" is a good book to read when thinking about Exelon.
  
  After reading the information you sent me, I'd say that the most important thing for you to do now is get some distance from comparative numbers. Think about what it is you are buying in each case. What aspect of the business is providing you with your margin of safety?
  
  It�� not the price.
  
  These are not cheap stocks on an asset value basis if you consider only their tangible book value.
  
  Therefore, either the tangible assets must be worth much more than they are carried for on the books ��or the intangibles must be very valuable for you to buy these stocks.
  
  In your final analysis I think you should focus on one question:
  
  How comfortable would you be if you had to hold this stock forever?
  
  This is an important question because you may have in mind that you have a lot of faith in Apple right now. That faith may be well founded. But if you have little faith in Apple four or five or six years out ��do you really think you will be the first to spot the company's loss of leadership? Think about how quickly companies like Nokia (NOK) and Research In Motion (RIMM) saw their P/E ratios contract when investors realized just how far they were behind the competition. Do you really think you will be fast enough to spot a change in Apple's position? It�� not enough to see the writing on the wall. You have to see it faster than everyone else. You have to sell before they do.
  
  That�� not the Phil Fisher way. The Phil F! isher way! is to be very sure when buying a growth company. Then, yes, you do monitor the situation. But it is not about understanding the situation one or two years out. It is about understanding the qualities already present in the company that will prove durable.
  
  Even if you've read Phil Fisher and Peter Cundill's books, I'd suggest looking at them again as they are good examples of the kind of investing you are trying to do in Apple (Fisher) and Exelon (Cundill).
  
  Also, you might want to read a bit about Marty Whitman's philosophy and Mario Gabelli's philosophy. If you think Exelon is a buy, it is probably because you have reasons similar to the reasons those two investors have when they buy a stock.
  
  Basically, Marty Whitman and Mario Gabelli try to find out the value of a company's assets in a private transaction. They don't try to figure out what public markets will pay for the stock. They try to figure out what private owners would pay for the business and they work back from there to figure out the stock's value.
  
  So my advice is to step back from all the numbers. Zero in on just a couple companies. Don't look at more than one stock in the same day. If you are thinking about Apple today then think only about Apple for today. Exelon can wait until tomorrow. Think about what aspect of the company makes the stock clearly worth more than its current price. Then study that aspect. And don't add a dime to your investment in that stock until you are comfortable with betting on the permanence of that aspect.
  
  Make sure you understand the value in the company. And make sure that value is durable.
  
  Understanding often requires more than just numbers. So, I

Top Blue Chip Companies To Own For 2014: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:

• [By Hawkinvest]

  Chevron Corporation (CVX) is a leading integrated energy company with exposure to oil, natural gas, refining, etc. This could be one of the most undervalued stocks in the market. Chevron pays a dividend that beats many other stock and bond yields, plus it has a below market price to earnings ratio of about 8 times earnings. The average stock in the S&P 500 Index currently trades for over 12 times earnings. If oil prices continue to rise, the already healthy profit estimates for Chevron might be too low. With oil prices showing strength this early in the season, Chevron could be poised to beat earnings in the coming months. However, the stock is trading at the upper end of the recent trading range. Recently, it has been possible to buy this stock at about $102 per share, so waiting for dips could pay off.

  Here are some key points for CVX:

  Current share price: $104.25

  The 52 week range is $85.63 to $110.01

  Earnings estimates for 2012: $12.66 per share

  Earnings estimates for 2013: $13.20 per share

  Annual dividend: $3.42 per share which yields 3.1%

• [By Victor Mora]

  Chevron provides essential energy products and services to growing companies and consumers worldwide. The stock has been on a bullish run for many years that has taken it to all-time high prices. Over the last four quarters, earnings and revenue figures have been mixed, however, investors in the company have been mostly happy with earnings reports. Relative to its peers and sector, Chevron has been a year-to-date performance leader. Look for Chevron to OUTPERFORM.

• [By Jonas Elmerraji]

  Surprisingly, one of the names that's correlating the highest with the S&P 500 right now is oil and gas supermajor Chevron (CVX). Just like the S&P, Chevron is trading in a very well-defined trend channel. The key difference is that the Chevron trade is further along; this stock is bouncing off of trendline support this week. That means it's time to be a buyer.

  Commodities and materials stocks are seeing some buoyancy this week, but Chevron's price action is different -- it's been more sustained over the course of 2013. This stock's proximity to trendline support right now makes it the best-in-breed oil name in my view. As geopolitical risks propel oil prices, the real story at CVX is the fact that support is just a few points away. That makes Chevron a great setup from a risk management perspective.

  Speaking of risk management, if you decide to jump into shares here, I'd recommend keeping a protective stopprotective stop just above the 200-day moving average.

• [By GuruFocus] Tom Gayner initiated holdings in Chevron Corp. His purchase prices were between $114.81 and $126.43, with an estimated average price of $120.86. The impact to his portfolio due to this purchase was 0.18%. His holdings were 43,000 shares as of 06/30/2013.
  
  New Purchase: Brookfield Property Partners LP (BPY)
  
  Tom Gayner initiated holdings in Brookfield Property Partners LP. His purchase prices were between $19.57 and $23.64, with an estimated average price of $21.67. The impact to his portfolio due to this purchase was 0.13%. His holdings were 175,122 shares as of 06/30/2013.
  
  New Purchase: ONEOK, Inc. (OKE)
  
  Tom Gayner initiated holdings in ONEOK, Inc.. His purchase prices were between $41.16 and $52.13, with an estimated average price of $46.98. The impact to his portfolio due to this purchase was 0.1%. His holdings were 70,000 shares as of 06/30/2013.
  
  New Purchase: Blackstone Group LP (BX)
  
  Tom Gayner initiated holdings in Blackstone Group LP. His purchase prices were between $19.1 and $23.45, with an estimated average price of $21.2. The impact to his portfolio due to this purchase was 0.09%. His holdings were 116,900 shares as of 06/30/2013.
  
  New Purchase: BlackRock Inc (BLK)
  
  Tom Gayner initiated holdings in BlackRock Inc. His purchase prices were between $245.3 and $291.69, with an estimated average price of $267.9. The impact to his portfolio due to this purchase was 0.08%. His holdings were 9,100 shares as of 06/30/2013.
  
  New Purchase: KKR & Co LP (KKR)
  
  Tom Gayner initiated holdings in KKR & Co LP. His purchase prices were between $17.8 and $21.15, with an estimated average price of $19.85. The impact to his portfolio due to this purchase was 0.08%. His holdings were 115,000 shares as of 06/30/2013.
  
  New Purchase: Eni SpA (E)
  
  Tom Gayner initiated holdings in Eni SpA. His purchase prices were between $40.39 and $48.96, with an estimated average price of $45.85. The impact to his portfolio due to this purchase was 0.04%. His ! holdings were 30,000 shares as of 06/30/2013.
  
  New Purchase: Ross Stores, Inc. (ROST)
  
  Tom Gayner initiated holdings in Ross Stores, Inc.. His purchase prices were between $59.26 and $66.5, with an estimated average price of $64.05. The impact to his portfolio due to this purchase was 0.04%. His holdings were 18,000 shares as of 06/30/2013.
  
  New Purchase: Carlyle Group LP (CG)
  
  Tom Gayner initiated holdings in Carlyle Group LP. His purchase prices were between $24.19 and $32.87, with an estimated average price of $29.56. The impact to his portfolio due to this purchase was 0.02%. His holdings were 20,000 shares as of 06/30/2013.
  
  Sold Out: EOG Resources (EOG)
  
  Tom Gayner sold out his holdings in EOG Resources. His sale prices were between $113.44 and $137.9, with an estimated average price of $128.22.
  
  Sold Out: State Street Corp (STT)
  
  Tom Gayner sold out his holdings in State Street Corp. His sale prices were between $56.51 and $67.44, with an estimated average price of $62.2.
  
  Sold Out: Bunge Ltd (BG)
  
  Tom Gayner sold out his holdings in Bunge Ltd. His sale prices were between $66.4 and $73.51, with an estimated average price of $70.39.
  
  Added: UnitedHealth Group Inc (UNH)
  
  Tom Gayner added to his holdings in UnitedHealth Group Inc by 45.25%. His purchase prices were between $58.54 and $66.09, with an estimated average price of $62.22. The impact to his portfolio due to this purchase was 0.4%. His holdings were 569,800 shares as of 06/30/2013.
  
  Added: Liberty Media Corporation (LMCA)
  
  Tom Gayner added to his holdings in Liberty Media Corporation by 102.38%. His purchase prices were between $108.75 and $130.01, with an estimated average price of $119.32. The impact to his portfolio due to this purchase was 0.2%. His holdings were 85,000 shares as of 06/30/2013.
  
  Added: National Oilwell Varco, Inc. (NOV)
  
  Tom Gayner added to his holdings in National Oilwell Varco, Inc. by 40.44%. His purchase prices were bet! ween $64.! 14 and $71.57, with an estimated average price of $68.35. The impact to his portfolio due to this purchase was 0.14%. His holdings were 191,000 shares as of 06/30/2013.
  
  Added: Google, Inc. (GOOG)
  
  Tom Gayner added to his holdings in Google, Inc. by 86%. His purchase prices were between $765.914 and $915.89, with an estimated average price of $849.25. The impact to his portfolio due to this purchase was 0.13%. His ho

Top Blue Chip Companies To Own For 2014: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:

• [By Louis Navellier]

  Philip Morris International (NYSE:PM) is involved with the manufacture and sale of cigarettes and other tobacco products in over 180 countries across the globe. Year to date, PM stock is up 16%, compared to a loss of nearly 2% for the Dow Jones.

• [By Roberto Pedone]

  One stock that insiders are buying up a large amount of here is Philip Morris International (PM), which manufactures and sells cigarettes and other tobacco products in markets outside the U.S. Insiders are buying this stock into modest strength, since shares are up 5.5% so far in 2013.

  Philip Morris International has a market cap of $143 billion and an enterprise value of $168 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 17.25 and a forward price-to-earnings of 14.6. Its estimated growth rate for this year is 4.2%, and for next year it's pegged at 11.8%. This is not a cash-rich company, since the total cash position on its balance sheet is $3.59 billion and its total debt is $25.50 billion. This stock currently sports a dividend yield of 3.8%.

  A director just bought 123,500 shares, or about $11.01 million worth of stock, at $89.15 per share.

  From a technical perspective, PM is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending over the last two months and change, with shares dropping from its high of $95.38 to its recent low of $85.21 a share. During that move, shares of PM have been mostly making lower highs and lower lows, which is bearish technical price action.

  If you're bullish on PM, then I would look for long-biased trades as long as this stock is trending above some near-term support at $87.65 to $87 and then once it takes out its 200-day at $88.72 and its 50-day at $89.25 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 5.10 million shares. If we get that move soon, then PM will set up to re-test or possibly take out its next major overhead resistance levels at $91.40 to $92.26 a share. Any high-volume move above those levels will then put $94 to $95 into range for shares of PM.

   

Top 5 Financial Stocks To Watch For 2014

Recent enforcement actions included charges brought by the SEC against two JPMorgan traders associated with the “London Whale” for lying about massive derivatives losses, and against a number of microcap companies, their CEOs and stock promoters in penny stock schemes. In addition, FINRA fined and censured VSR Financial and registered principal Donald Beary over sales of nonconventional investments.

SEC Charges Two in London Whale Case

Javier Martin-Artajo and Julien Grout, former traders at JPMorgan Chase & Co., were charged by the SEC with fraudulently overvaluing investments in order to hide massive losses in a portfolio they managed.

The pair worked in JPMorgan’s chief investment office (CIO), which created the portfolio known as the Synthetic Credit Portfolio (SCP) as a hedge against adverse credit events. The portfolio was primarily invested in credit derivative indices and tranches, and Martin-Artajo and Grout were required to mark the portfolio’s investments at fair value in accordance with U.S. GAAP and JPMorgan’s internal accounting policy.

Top 5 Financial Stocks To Watch For 2014: Rodman & Renshaw Capital Group Inc.(RODM)

Rodman & Renshaw Capital Group, Inc., through its subsidiaries, provides investment banking services to public and private companies primarily in the United States and China. It offers corporate finance in a range of financing alternatives, including private placements, private investments in public equity, registered direct offerings, and public offerings. The company also offers strategic advisory services on various transactions comprising mergers, acquisitions, and asset sales; sales and trading services; and equity research services to institutional investors. In addition, it designs investment conferences that bring together companies, institutional investors, business development executives, and experts. Further, the company makes principal investments in early-stage biotechnology and life sciences companies. Rodman & Renshaw Capital Group, Inc. serves the life science/healthcare, energy, metals/mining, financial services, and cleantech sectors. The company was foun ded in 2002 and is headquartered in New York, New York.

Top 5 Financial Stocks To Watch For 2014: Capitaretail China Trust (AU8U.SI)

CapitaRetail China Trust operates as a real estate investment trust in Singapore. It invests in a portfolio of retail real estate properties located primarily in the People�s Republic of China, Hong Kong, and Macau. The company�s portfolio include eight shopping malls located in Beijing; Shanghai; Zhengzhou, Henan Province; Huhhot, Inner Mongolia; and Wuhu, Anhui Province. CapitaRetail China Trust was formed on October 23, 2006 and is based in Singapore.

Top 10 Clean Energy Stocks To Watch Right Now: Pirelli&c Real E(PCRE.MI)

Pirelli & C. Real Estate S.p.A. is a real estate arm of Pirelli & C. S.p.a. The firm engages in investment, development, and management of properties. It invests in the real estate markets of Italy, Germany, and Poland. The firm?s portfolio includes both commercial and residential properties. Pirelli & C. Real Estate S.p.A. is based in Milan, Italy. Prelios SpA (CM:PRS) operates independently of Pirelli & C. SpA as of October 21, 2010.

Top 5 Financial Stocks To Watch For 2014: Home Properties Inc. (HME)

Home Properties, Inc. is an independent real estate investment trust. The firm invests in the real estate markets of the United States. It is engaged in the ownership, management, acquisition, rehabilitation and development of residential apartment communities. The firm also invests in townhomes and offices. Home Properties, Inc. was founded in November 1993 and is based in Rochester, New York.

Top 5 Financial Stocks To Watch For 2014: Independent Bank Corporation(IBCP)

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

Advisors' Opinion:

• [By Harding]

  Independent Bank is a commercial bank in Michigan. It provides checking and savings accounts, commercial lending, direct and indirect consumer financing and mortgage lending.

  Shares of the Michigan company climbed after Independent Bank said its net loss applicable to shareholders shrank to $4.9 million, or 65 cents a share, in the fourth quarter, compared to a year-earlier loss of $48.2 million, or $20.49 a share. On Feb. 16, Independent Bank announced its senior management succession plan, although shares pulled back shortly after when the company announced the unregistered sale of 253,000 shares of common stock to Dutchess Opportunity Fund II as part of an investment agreement established in July 2010.

  Current Share Price: $3.23 (March 29)

  First Quarter Total Return: 148%

  Analyst Ratings: Stifel Nicolaus is the only research firm currently following Independent Bank, recommending that investors hold on to shares.

  TheStreet Ratings has a "sell" rating on Independent Bank, noting that despite the recent stock rally, shares are down sharply in the past two years and underperform the S&P 500. "Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter," the March 20 research note reads.

Statoil Contract for ABB - Analyst Blog

It seems to be a great time for ABB Ltd. (ABB) as the company scored yet another deal win. Close on the heels of winning contracts in China, Iraq, Saudi Arabia and Norway, the power and automation technology company has now secured a $27-million order from Statoil for the upgradation of safety and automation systems at the key Heimdal platform in North Sea, off the Norway coast. The contract with Statoil was signed during the second quarter of 2013. However, the financial details of the transaction were not disclosed.

This is ABB's second deal win this very month in Norway. Last week, ABB received an order from the Norwegian Transmission System Operator, Statnett SF, wherein ABB will be responsible for the construction of two 420 kilovolts (kV) transmission substations.

According to the current agreement, ABB will be required to upgrade certain parts of the safety and automation systems in order to make the Heimdal platform safer and at the same time more profitable. ABB is responsible for the complete engineering, procurement, construction and installation. Post the upgradation, the Heimdal platform will comprise ABB's modern 800xA Extended Automation platform, which will be the main control system and will be completely tailored to comply with Statoil's guidelines for workstations layout and design of process graphic.

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Heimdal platform is an offshore natural gas field in the central North Sea. It gets gas from the Huldra, Oseberg, Skirne and Vale fields and exports it via Vesterled or Statpipe pipelines for processing. When operating at its full capacity, the amount of processed gas in Heimdal contributes 15% to 20% of Norway's total gas production.

ABB Ltd. has a Zacks Rank #3 (Hold). Some other players in the same industry, which can be considered for buying are Chicago Bridge & Iron (CBI) and Dycom! Industries (DY), both carrying a Zacks Rank #1 (Strong Buy). Another peer, Emcor Group Inc. (EME) is also a good pick and it carries a Zacks Rank #2 (Buy).

The Stock Market's Next Move

 The bears have been in control of the stock market for the past few weeks.

 

After making a new all-time high above 1,700 in early August, the S&P 500 has fallen. It closed Tuesday at 1,652 – down 3.5% from its peak.

 

Lots of folks will argue the selling isn't over yet, and stocks have further to fall...

 

For the most part, I agree with that thinking. I've been looking for the S&P 500 to retest its June low near 1,570 for the past month.

 

In the very short term, though, stocks are oversold and ripe for a bounce. In fact, the decline over the past few weeks looks a lot like the decline we saw in early June. Back then, stocks hit extreme oversold levels, bounced enough to relieve that condition, and then dropped to a lower low.

 

We may see something like that happen this time as well. A couple of technical indicators are pointing that way.

 

 Take a look at the McClellan Oscillator – a measure of short-term overbought and oversold conditions...

 

 

On Monday, the oscillator dropped to its second-most oversold reading of the year.

 

 On the following chart of the S&P 500, you can see how a similar condition in early June led to a quick bounce and then a decline to even lower prices...

 

10 Best Stocks To Buy Right Now

 

The bounce doesn't look like much from the chart, but it was good for about 30 S&P 500 points. A similar bounce right now would push the index back up to around the 1,680 level.

 

 The Volatility Index (the "VIX") also suggests we may see higher stock prices in the short term...

 

 

The VIX closed above its upper Bollinger Band on Monday. That's an extreme move that often leads to a short-term reversal when the VIX closes back inside the bands.

 

You can see the same condition in early June, when the VIX closed above its upper Bollinger Band and then reversed. That reversal kicked off a bounce in the broad stock market. When the bounce ended, the S&P 500 dropped to a lower low, and the VIX climbed to a higher high.

 

Right now, traders should be watching for a bounce. Look for the S&P 500 to rally toward the 1,680 level and for the VIX to reverse lower and test its middle Bollinger Band (just like it did in June) around 13.25.

 

That should be enough to alleviate the current oversold condition and set the market up for a more significant decline.

 

Best regards and good trading,

 

Jeff Clark

It Pays to Be a Giver

Seeing, then seizing, the advantages of giving while suppressing the instinct for taking has emerged as a trend in the business world, or at least in the academic and professional literature on success.

Bob Burg’s bestselling Go Giver series of books is an early example of the genre that seeks to reframe business transactions as opportunities to empathize with and help others solve problems, with financial reward a mere “echo of value” that follows naturally from the process of giving.

A new entry in the generosity-is-profitable category is Wharton School of Finance professor Adam Grant’s Give and Take: A Revolutionary Approach to Success, a new book replete with academic studies buttressing the go-giver argument.

Grant introduces some of these arguments in an article in the summer issue of Strategy + Business, a publication of management consulting firm Booz & Co.

Grant, who teaches organizational behavior and teamwork and leadership classes at the University of Pennsylvania, argues there has been a shift in the contemporary workplace’s organizational dynamics.

In the hierarchical environments of the past, takers could climb to the top on the shoulders of givers. In today’s more team-oriented workplaces, it is givers who tend to thrive while takers find it much harder to prosper.

Givers, Grant writes in the Strategy+Business article, “are the teammates who volunteer for unpopular projects, share their knowledge and skills, and help out by arriving early or staying late.”

The mechanism by which givers earn higher rates of promotion while takers flounder is a third group Grant calls “matchers,” who make up the majority of a company’s employees. Matchers fall in the middle of the giver-taker spectrum but where they do stand out is in keeping score.

Not wanting to see injustice done, they “tax” takers by spreading “negative reputational information,” for example, while providing “bonuses” to givers via “compensation, recognition or recommendations for promotions.”

Grant gives the example of this group dynamic in the case of a Google engineer who received eight promotions in a single year:

“He volunteered his time to train new hires and help members of multiple cross-functional teams learn new technologies, and his peers and managers responded like matchers, granting him additional pay and recognition.”

Grant cites several studies showing that giver behavior accrues to the bottom line in that employees work harder for leaders who put others’ interests first—that is, giver behavior triggers a desire on the part of majority matchers to see self-sacrifice rewarded.

In one of these studies, members of various teams were asked to rate each other on a variety of characteristics, then asked at the end of the project who emerged as leaders.

“The single strongest predictor of leadership was the amount of compassion that members expressed toward others in need. Interestingly, compassionate people were not only viewed as caring; they were also judged as more knowledgeable and intelligent,” Grant writes.

Top 10 Dividend Companies To Own For 2014

The lesson in all of this for leaders of financial advisory teams may be Grant’s advice to “focus less on  individual skills and talents, and more on the extent to which employees use their skills and talents to lift others up — rather than cutting them down.”

And since only a minority of employees are predisposed toward giving, the Wharton professor advises managers to create practices that “nudge employees in the giver direction” and counsels recognizing “role models who embody an orientation toward others.”

---

Check out Sales Paradox: The Way to Get Is to Give on AdvisorOne.

U.S. Stocks Have Worst Week Since June Amid Fed Concern

U.S. stocks fell for the week, with benchmark indexes posting the worst losses since June, as better-than-estimated data on trade and service industries fueled concern the Federal Reserve may reduce its stimulus.

JPMorgan Chase & Co. and Bank of America Corp. dropped at least 2.6 percent amid federal legal actions tied to their past mortgage-backed bond practices. Homebuilders tumbled 6.6 percent as a group amid concern rising interest rates and slow orders may continue to hurt the industry. International Business Machines Corp. slumped 3.8 percent to its 2013 low on signs of slowing demand for hardware. Tesla Motors Inc. and Groupon Inc. surged as results beat analyst estimates.

The Standard & Poor's 500 Index dropped 1.1 percent to 1,691.42. The Dow Jones Industrial Average slid 232.85 points, or 1.5 percent, to 15,425.51. Both gauges capped their worst week since June 21 after closing at records on Aug. 2.

"There is still plenty of skepticism and anxiety in the market," Hank Smith, who oversees $7 billion as chief investment officer at Radnor, Pennsylvania-based Haverford Trust Co., said by phone yesterday. "The uncertainty of when will the Fed taper? How much will they taper?" he said. "The market has come a long way this year. It will be interesting to see if investors take advantage of this pullback as they did clearly in the pullback in May-June."

Fed Bets

The weekly drop in stocks came after the S&P 500's valuations jumped to their highest levels in more than three years. The benchmark index trades at 15.3 projected earnings, up from a multiple of 13.1 at the beginning of this year, data compiled by Bloomberg show.

Speculation that the Fed will pare bond purchases in September as the economy strengthens has whipsawed the market. The S&P 500 sank as much as 5.8 percent over the five weeks ended June 24, before recovering all the losses to hit an all-time high on Aug. 2.

Charles Evans, Sandra Pianalto and Richard Fisher, regional Fed presidents in Chicago, Cleveland and Dallas, said during the week that the central bank may be closer to tapering as the labor market recovers. Fed stimulus has helped propel the S&P 500 up more than 150 percent from its bear-market low in 2009.

Economic Reports

America's trade deficit narrowed in June to the smallest in almost four years, service industries expanded in July at the fastest pace in five months, and jobless claims fell to the lowest monthly rate since before the recession, economic reports showed during the week. In Asia, the Chinese economy is showing signs of improvement, with data on industrial output, trade and service industries topping economist forecasts.

Some 449 companies in the S&P 500 have reported quarterly results so far this earnings season. Among them, 72 percent have exceeded analysts' profit estimates and 56 percent have beaten sales projections, data compiled by Bloomberg show.

Top 10 Bank Companies To Own For 2014

"Earnings are pretty much done and tapering is on the way," Rick Fier, director of equity trading at Conifer Securities LLC in New York, said in an interview. "Catalysts to move us higher are done for the short term. We get the sense that the next move will be lower, nothing terrible but lower seems easier than higher at this point."

The Chicago Board Options Exchange Volatility Index, or VIX, jumped 12 percent to 13.41 during the week. The equity volatility gauge is down 26 percent for the year.

Nine of 10 industry groups in the S&P 500 declined as telephone and financial shares fell the most, sinking at least 1.9 percent.

Federal Investigation

JPMorgan dropped 3.5 percent $54.52. The biggest U.S. bank said it's under federal criminal investigation for practices tied to sales of mortgage-backed bonds. The Justice Department's civil division found in May that sales practices broke civil laws after it examined securities tied to subprime and Alt-A loans sold to investors from 2005 through 2007.

Bank of America erased 2.6 percent to $14.45. The Department of Justice accused the company in a lawsuit of misleading investors about the quality of loans tied to $850 million in mortgage-backed securities. The complaint chronicles friction among bank staff in 2007 and 2008 as they excluded risky Alt-A loans while leaving in wholesale debts once scorned as "toxic waste" by the firm's then-chief.

An S&P index of homebuilders slumped as all of its members retreated at least 4.5 percent. Decelerating orders and potentially higher interest rates may continue to hurt investor sentiment toward the housing industry, Robert Wetenhall, an analyst at RBC Capital Markets LLC, wrote in a note.

PulteGroup Inc. tumbled 9 percent to $15.67 while D.R. Horton Inc. slipped 7.3 percent to $18.89.

Furlough Leave

IBM dropped 3.8 percent to $187.82 for the biggest loss in the Dow. The world's largest computer-services company said U.S. employees in its hardware division will take a furlough week with one-third pay starting either Aug. 24 or Aug. 31.

The company is cutting costs after server demand slowed in the second quarter. Sales in the hardware business, which includes storage devices and microelectronics, slid 12 percent in the period from a year earlier.

First Solar Inc. slid 13 percent, the most in the S&P 500, to $41.02. the largest U.S. solar-panel manufacturer reported lower second-quarter profit as sales slipped 46 percent.

J.C. Penney Co. sank 9.9 percent to $12.87. Investor Bill Ackman called for the retailer to oust Chairman Tom Engibous, escalating a public dispute with his fellow directors as he seeks a replacement for Chief Executive Officer Mike Ullman.

China Boost

Raw-material producers were the only group to gain for the week among the S&P 500's 10 main industries, rising 0.9 percent, amid data that showed a stabilizing economy in China, the world's biggest consumer for commodities from iron ore to coal.

Cliffs Natural Resources Inc., the largest U.S. iron-ore producer, climbed 18 percent to $24.35 in the week. Peabody Energy Corp., the largest U.S. coal producer, advanced 11 percent to $17.90.

Tesla soared 11 percent to $153. The electric-car company led by Elon Musk posted second-quarter results that surpassed analysts' estimates on a surge in Model S sedan deliveries.

Groupon Inc. rallied 22 percent to $10.61. The operator of the largest daily-deals website reported a second-quarter net loss that was narrower than analysts forecast. The company, which lost 87 percent of its value in the year after going public in November 2011, named co-founder Eric Lefkofsky as chief executive officer to lead turnaround plans.

Reducing Stocks

Credit Suisse Group AG cut its holdings of equities after global stocks rallied to a five-year high and Fed policy makers began considering whether to trim stimulus measures. Switzerland's second-largest bank reduced its allocation to stocks to neutral from overweight, meaning it no longer holds more of the asset class than is represented in global benchmarks, according to a note to clients dated Aug. 5.

"The fundamental environment remains attractive, but the markets are overbought in the wake of the recent rally," Michael Strobaek, the Zurich-based global chief investment officer at Credit Suisse, wrote in the report. The "combination of a positive economic outlook and a further supportive monetary policy seems largely priced into the markets. We therefore see limited upside in the near term," he wrote.

Silgan Retains Neutral Tag - Analyst Blog

On July 5, we maintained our Neutral recommendation on Silgan Holdings Inc. (SLGN) based on expected benefits from its successful acquisitions, increasing productivity and cost reduction initiatives as well as decline in resin prices. However, soft demand in Europe, a high debt-to-capitalization ratio and lower volume expectation remain concerns for this manufacturer of metal and plastic consumer goods packaging products.

Why Reiterated?

Silgan Holdings' first-quarter 2013 earnings declined 10% year over year to 46 cents per share, due to higher resin costs and macroeconomic conditions in Europe. Total revenue increased 4% year over year to $796 million.

Resin costs were a headwind to both the Plastics and Closures segments in the first quarter. However, in the second half of fiscal 2013, resin headwinds will turn into tailwinds due to the recent decline in polypropylene prices.

The company's recent acquisition of Rexam's high-barrier food business will not only add to its growth platform through an adjacent product/technology, but also augment its scope for international expansion. The acquisition is expected to be accretive to 2013 earnings.

Silgan Holdings continues to enhance profitability through productivity and cost reduction opportunities. In 2013, Silgan is expected to witness improvement in the core metal food can business from volume growth and benefits from lean manufacturing initiatives as well as continued profit improvement in the legacy plastics business from greater operational efficiencies.

Silgan is funding two major initiatives to promote the food can as a sustainable long-term packaging solution for shelf-stable products - Can Vision 2020 and an industry-wide campaign through the Can Manufacturing Institute. The Can Vision 2020 program aims to reduce the overall supply chain cost of the food can. According to the company, there exists long-term cost reduction opportunities of $200 million across the supply chain. The seco! nd initiative in collaboration with the Can Manufacturing Institute is intended to improve consumers' perception and increase awareness regarding the advantages of the food can compared with other forms of food preservation/delivery.

On the flipside, Silgan's exposure to Europe has increased following its Vogel & Noot acquisition and expansion of the Closures segment in the region, accounting for almost 50% of the segment's revenues. With the European conditions expected to remain challenging, we expect results to be affected over the next few quarters.

Furthermore, Silgan Holdings' high debt-to-capitalization ratio is a concern. As of Mar 31, 2013, its debt-to-capitalization ratio was 78%. Its strategy to take up debt to finance acquisitions will further aggravate the company's debt position.

Other Stocks to Consider

Other stocks in the industry that are currently performing well and have a good visibility include Mobile Mini, Inc. (MINI), with a Zacks Rank #1 (Strong Buy), and Berry Plastics Group, Inc. (BERY) and Rock-Tenn Company (RKT), both carrying a Zacks Rank # 2 (Buy).

Kohl's- 20% off for a limited time only!

A while ago I ran a quick screen for cheap stocks with demonstrated earnings growth and a strong financial position. Often, screening for stocks leads me to small or unheard of companies, which sometimes do indeed present valuable opportunities. However, after this particular screen, one company was on my list which I needed no introduction to- Kohl's. After a cursory analysis, I decided to research the company more thoroughly…

Business Summary

For most US-based readers, Kohl's is an accepted part of American retail life. Shopping isn't really my thing, but even I have been to Kohl's numerous times over the last few years.

However, for the sake of internationally-based readers, Kohl's operates 1,127 department stores (as of March 2012) in the United States. The stores target middle-income and value focused customers, and offers private, exclusive, and national branded apparel, footwear, accessories, and housewares. In addition to their physical stores, Kohl's also provides on-line shopping through its website- kohls.com. Kohl's headquarters are in Wisconsin, but it currently has stores in 49 states. (They haven't made it to Hawaii quite yet…)

There is a vast amount of information available regarding the department store/apparel industry in the US, and this article isn't meant to provide a definitive overview. Rather, my goal is to merely share some thoughts of mine on an interesting investment idea.

There are three traits of Kohl's, that, when combined, demonstrate its leadership in the department store industry. (There is a key fact that can set it apart as an investment idea- regardless of industry-, but I'll get to that right after the following three traits.)

These three traits are:

1. In 2011, more than 50% of Kohl's revenues came from exclusive or private Kohl's brands. That is up from 25% in 2004 and 48% in 2010. Increasing revenues from private or exclusive brands is something that is a major asset to a department! store. It improves margins, while also giving Kohl's more control over production and more price flexibility. Again, more than half of Kohl's total revenue came from brands that you can ONLY buy at Kohl's.

2. The e-commerce division at Kohl's has been experiencing strong growth. This is the revenue from e-commerce (in millions) that Kohl's has received in the last 6 years:

2006: 184
2007: 241
2008: 356
2009: 492
2010: 743
2011: 1,000+ (more than 5% of total Kohl's revenues)

In addition to their three e-commerce distribution centers in Ohio, Maryland, and California, Kohl's is opening up a fourth e-commerce distribution center in Texas in summer 2012.

Currently, Kohl's margins are lower from e-commerce than from its stores. However, growing its e-commerce division, both in revenues and margins, is a priority with Kohl's management, and I believe that e-commerce gives Kohl's growth potential that is not reflected in analyst outlook.

3. Kohl's has a strong position in the middle-income market.

The more I studied department stores in the US, the more I realized what savvy shoppers probably realize intuitively- that the department store world is fairly differentiated between cheap, middle-of-the-road, and not so cheap.

The economic slowdown has been emphasizing this division. In general, stores branding themselves as off-price have been thriving in the past five years, whereas stores that are middle- to high- income have had a more difficult five years. (There are always exceptions, and along with Kohl's, Nordstrom is one of them, having experienced good growth as a high-end retailer.)

The recession definitely slowed growth at Kohl's, but Kohl's has showed resiliency in the middle-income market in an extremely difficult time. This past year, for example, they were able to pass on price increases to customers (due to higher apparel production costs), and not lose ground in comparable same store sales, despite a! tough ye! ar for the American middle class as a whole.

Additionally, no major middle-income competitors, such as JCPenney, Dillard's, and Sears, among others, have been able to keep up with Kohl's comparable same store sales and margins in the last five years, which demonstrates the strength of Kohl's in its primary market.

Other companies can rival (or better) Kohl's in any one or two of the above three areas. For example, Macy's has about the same level of e-commerce growth in the past year, and JCPenney has 55% of its sales coming from private/exclusive brands. However, I believe that Kohl's will be able to leverage the combination of its private/exclusive brand strength, e-commerce growth, and market share in the middle-income market to provide decent returns on assets for shareholders.

Many department stores don't publish all of the above info for their stores, but from what I have read, no department store in the US combines those three elements better than Kohl's.

The Key Fact

All of that is good, but there is one key fact regarding Kohl's that is making me take a long, hard look at the company- its share buyback.

A number of buybacks get attention in the financial press, and they are, naturally, buybacks of the larger, more well-known companies, such as Exxon Mobil, IBM (thanks to Warren Buffet's recent annual letter), and more recently- Apple.

Let's look at the details of the share buyback at Kohl's. Here is the exact amount of shares outstanding (not counting options- we'll get to those later) that Kohl's had on the below dates:

March 10, 2010- 306,974,796
March 9, 2011- 290,417,880
March 7, 2012- 243,251,944

You read that right. In the past two years, Kohl's has purchased over 20% of their entire company back.

This year, Kohl's has allotted $1 billion to share repurchases, and has already purchased some before my March numbers. So, by using $750 million (a conservative guess) remaining for pur! chases, a! t an average price of $50, that'd be another 15 million shares purchased this year- another 6% of the company.

Buying back more than 26% of a Fortune 500 company in three years? That allows for some pretty strong EPS growth from buybacks alone!

But wait a minute, you might say, what about options? Are they, like Apple, simply using the buyback to prevent massive dilution from employee stock options?

Let's find out. Here's what their shares total would look like if you add in all their options (including options that are antidilutive and aren't yet exercisable) and all nonvested stock awards:

March 2010- 327,705,796
March 2011- 309,402,880
March 2012- 261,761,944

(Their total options available to employees have actually gone down in the last three years, which I view as a positive. There were 20,731,000 shares available for employee compensation in March 2010, 18,985,000 in March 2011, and 18,510,000 in March 2012.)

As you can see, their buyback isn't disguising employee option dilution. It's truly a gift to shareholders, increasing their stake in the company and earnings per share. In addition, their buyback is not saddling Kohl's with too much debt. They have used some debt to finance the buyback, but their debt position is very manageable

Finally, let's take a step back and look at the big picture of the share buyback and how it reflects on management's strategy. Before 2009, Kohl's was adding roughly 80-90 stores a year, but then the recession hit. In that time, they made two key strategic moves:

1. Slowing massive store expansion, and instead focusing on remodeling and improving their current store base to weather the economic storm, and strengthen their market share.

2. Using the free cash flow that had previously gone to expansion to purchase back shares and begin paying a dividend.

These moves both sound like common sense, and they are. When a recession was in full force, though, knowing that managem! ent used ! common sense is a comforting thought for future investors.

The Future

I believe that when the economy begins to strengthen Kohl's will begin expanding again. In 2007, their plan was to have 1,400 stores in the US by 2012, and were on pace to do so. Economic problems have obviously prevented that, but I believe that as the economy recovers, they will use their cash flow to focus on reaching that goal. However, if the economy weakens again, I think they'll probably buy back additional shares with their cash.

Management's past decisions and Kohl's strong position in its industry give Kohl's a more defensive position than a lot of department stores, while the share buyback illustrates management's offensive side, too. It will be interesting to see how things play out.

Financial Strength and Dividends

Kohl's has a pretty solid balance sheet. Debt levels are fine. This year is the first in several years that they have had their current ratio below 2 (it's currently around 1.8), but that is only due to the large stock buyback discussed above. The ratio of earnings to interest charges is 4.8, and has been growing steadily the last three years.

Kohl's paid their first-ever dividend a year ago on March 30, 2011. This year they raised their dividend 28%, and their payout ratio is still fairly low. I believe that their dividend has room to grow beyond the current 2.6% yield.

Risks

There are several risks for Kohl's, and most of them affect all apparel retailers. The big three are: a) macroeconomic struggles, which increase retailer competition for fewer consumer dollars and tighten margins, b) the highly competitive nature of the business, and c) the rise of the price of cotton the past few years.

Two other things for an investor to be cognizant of, while I'm talking about risks:

First, Kohl's has part of its long-term assets in auction-rate securities, which are fairly uncertain these days. They have marked down a fair ! amount of! their ARS's value, but it is uncertain that they will get the full par value of their ARS back.

Second, they have had errors in their internal financial reporting framework that have appeared in the last two annual reports. The errors were regarding their accounting for capital leases, and have now been adjusted for, but still, it's worth keeping an eye on.

Valuation

Kohl's is pretty conservatively priced right now. It is trading at or near historical lows with a price/earnings of 11.6, a price/book of 1.9, a price/sales of 0.65, and a price/cash flow of 6.3.

I believe that a conservative valuation for Kohl's would be in the $59-$65 range, with the median being $62. A 20% margin of safety from $62 would be $49.60. This past year, Kohl's has traded even as low as the $42-$43 range, where I say it is a buy. I don't currently own shares in Kohl's, but will be considering it as an option when the share price is in the $40's, and probably will be buying if it goes below $45 again.

With a 2.6% dividend yield, a strong share repurchase plan, a reasonable price, a good market position, and plans for further growth, both in e-commerce and in physical stores, I think that investors today could do a lot worse than Kohl's. At the current S&P 500 price level, I believe that Kohl's is positioned to outperform the index over a 10-year time horizon.

Guru Purchases

Guru thoughts on Kohl's have been mixed. Ray Dalio, Ken Heebner, and Joel Greenblatt have been buying. Chris Davis, Lee Ainslie, Richard Aster, Jr., and PRIME CAP Management have been selling.

The guru with the largest position in Kohl's is Brian Rogers (2,350,000 shares), and the guru who has KSS as the largest portion of his portfolio is Bill Nygren (1.4%).

Disclosure: None

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Related links:Ray DalioKen HeebnerJoel! Greenbla! ttChris DavisLee AinslieBrian RogersBill Nygren

Financial Careers According To Hollywood

Both Hollywood and Wall Street are larger-than-life places, so it's only natural that the two have come together on numerous occasions. Classic Wall Street films such as "Working Girl" (1988), "Trading Places" (1983) and "Wall Street" (1987) focus on the world of New York's financial district and its workers. But how accurate are the characters and the roles they portray in these popular movies? Read on to find out.

The Alternative Asset Manager - Michael Douglas as Gordon Gecko in "Wall Street"
Alternative asset manager is a catch-all phrase that refers to hedge fund managers, private equity specialists and other nontraditional asset managers. Successful hedge fund and private equity managers sit at the very pinnacle of the Wall Street hierarchy.

Although alternative asset managers employ a variety of techniques to make money, they share the following two general characteristics:
A compensation structure that allows them to share generously in any profits they generate for their companies. The potential to achieve almost unimaginable financial rewards; in an extreme example, hedge fund manager John Paulson earned a reported $3.7 billion in 2007. As might be expected, the career path is difficult. Many candidates have graduate degrees and prior experience as analysts, traders or investment bankers. Once prospects have acquired the necessary expertise, they may be able to raise money to start their own funds. In prosperous times, it is relatively easy for individuals with strong backgrounds to raise large sums of money, but in times of tight credit this becomes a far more difficult proposition. For those who do manage to start their own funds, the failure rate is high.

In the movie "Wall Street,"Michael Douglas plays Gordon Gecko, a Wall Street titan whose activities fall under the umbrella of alternative asset management. Gecko's days are filled with meetings, phone calls and pressure-packed trades. Even when Gecko is not in the office, he still seems to be working, often on many things at once. This portrayal is pretty accurate; a typical high-level alternative asset manager has busy days filled with high-stakes decisions. Anyone interested in such a career must be able to handle pressure, be proficient at multitasking, be willing to work long hours and be able to thrive in a highly competitive environment.

The Stockbroker - Charlie Sheen as Bud Foxx in "Wall Street"
A career as a successful stockbroker is an exciting and rewarding one. The compensation can be excellent, the work is challenging and many brokers enjoy the satisfaction of helping their clients achieve their financial goals.

In order to reach this point, however, stockbrokers must endure a period as a "rookie" broker. For most, this period is a difficult one, with relatively low pay, long hours and the frustrating ordeal of cold calling prospects for business. Successful brokers work hard, are driven to succeed, don't fear rejection and are passionate about the financial markets.

For the most part, Charlie Sheen's character in the movie "Wall Street" is a fairly typical young stockbroker. Bud Foxx is ambitious and hard working; he makes numerous phone calls during the day, gets hung up on frequently and tolerates rejection well. He also works late at night analyzing stocks and desperately wants to succeed in the business and become a "player." Foxx is so dedicated that he calls his idol, Gordon Gecko, for months on end in order to win his business. Foxx provides an excellent example of the hard work, perseverance and tenacity necessary to succeed as a Wall Street broker.

The Commodity Trader - Eddie Murphy as Billy Ray Valentine in "Trading Places"
"Trading Places" focuses on the exciting world of commodity traders and portrays it in a relatively accurate manner. Most notably, the film depicts the volatile nature of commodities markets, where a trader can be wiped out in a day. One famous real-world example is Brian Hunter from the Amaranth hedge fund. Hunter was a fantastically successful commodity trader until he lost $6 billion in the span of a couple weeks and forced his company into liquidation.

Some of the best scenes in "Trading Places" are those that depict the action in the commodities trading pits. These provide an excellent view of an exciting corner of Wall Street, but one that has steadily declined in importance. Since the advent of computers, more and more trading occurs electronically and by traders working at desks. The exciting visual and audio spectacle of the brightly colored floor traders screaming out orders has not disappeared from the landscape, but it is becoming rare.

Eddie Murphy's character this movie is a new commodity trader who makes a meteoric ascent from newcomer to toast of the town. The possibility of such a rapid rise is one of the great attractions of a career as a Wall Street trader. However, while Murphy's character is a fairly good approximation of a newcomer to the trading world, the speed of his ascent is somewha! t exaggerated. Rapid progress in a trading career is possible, but going from newcomer to head trader by Christmas is unrealistic. Nevertheless, for smart, ambitious employees, trading offers the possibility of more rapid advancement than almost any other career imaginable.

The Investment Banker - Melanie Griffith As Tess McGill In "Working Girl"
Investment bankers have been featured in several movies, including "Working Girl," "American Psycho" (2000) and "Barbarians at the Gate" (1993). These movies faithfully portray several aspects of the investment banker's job, including long hours, frequent meetings and the pressure that comes from working in a business where a single deal can define a career. When Harrison Ford comments in "Working Girl" that "you're only as good as your last deal," he accurately sums up the investment banking business. Those who are interested in a career in investment banking should consider whether they are willing to put in the long hours, hard work, extensive travel and often tedious duties necessary to progress to the top of this field.

In "Working Girl," Melanie Griffith plays a secretary eager to break into the ranks of investment banking. She is ultimately successful, but unfortunately, her character's success is more the exception than the norm. Although there is always the possibility that a talented, intelligent, hard-working individual can find a place in investment banking, the vast majority of senior employees have a certain career and educational background. This background almost always includes an undergraduate degree from a strong university; most mid-level and senior investment bankers also have a Master of Business Administration (MBA) or other graduate degree.

The most popular career path to investment banking includes working as an analyst at an investment bank for two or three years after college, attending graduate school and then returning to investment banking at positions of increasing responsibility. Compared to trading, a career in investment banking often takes somewhat longer to develop, although progress can still be very quick by traditional standards.

The Bottom Line
Hollywood often sensationalizes the lives and careers of Wall Street workers, but many aspects of these portrayals are quite accurate, allowing viewers to gain valuable insight into what a Wall Str! eet career might actually be like. The movies also include cautionary lessons that the unprincipled pursuit of wealth and power often results in a catastrophic fall. Movie watchers considering a career in finance should remember these lessons as they pursue a career that might place them in positions of great power and responsibility.

4 Key Events That Brought 2 Companies Into the Dow

On this day in economic and business history ...

Two of the Dow Jones Industrial Average's (DJINDICES: ^DJI  ) components had eventful days on June 1 throughout their histories. Each company actually experienced two major notable events on different years. Let's take a closer look at what happened for these two components, but first let's examine another landmark event that took place today.

This is CNN
The 24-hour news cycle was born on June 1, 1980, when CNN made its debut on the channel lineups of 1.7 million American cable subscribers. This low market penetration meant that Ted Turner's news network initially operated at a loss, but within three years, following the takeover of the rival Satellite News Channel, CNN reached more than 33 million viewers, or 20% of all American viewing households.

CNN achieved prominence in 1986 when it was the only network to offer live television coverage of the space shuttle Challenger, which exploded shortly after takeoff. The Persian Gulf War of 1991 was CNN's coming-out party, as it was the only outlet offering live communications from inside Iraq during the initial bombing strikes. Five years later, CNN (along with the other Turner broadcasting networks) merged with Time Warner (NYSE: TWX  ) , which dramatically expanded its reach, both domestically and internationally. Today, CNN reaches more than 100 million households and nearly a million hotel rooms in the United States, and is also available in an international format in virtually all of the world's sovereign countries.

The trust that couldn't be busted
Alcoa (NYSE: AA  ) quickly became a leader in the aluminum industry after its founding in the late 1800s, in no small part because of its role in inventing the industry with a revolutionary new extraction process that made commercial aluminum production possible for the first time. So dominant was its market position that the U.S. Justice Department filed an antitrust suit against the company on June 1, 1938. Alcoa was by far the largest player in the aluminum market at the time, with an estimated 90% share of all American virgin aluminum production.

The case dragged on until 1945, when a landmark decision reframing the very definition of "monopoly" allowed Alcoa to skate past the trust-busters wholly intact. You can read more about the decision and its aftermath when you click on this link.

Alcoa's successful evasion of antitrust crusaders proved important to its later status as a Dow component. The aluminum company won a spot on the index exactly 21 years after its case was first filed, on June 1, 1959. Not only is Alcoa the only one of the four new additions made that day to survive as a current component -- Anaconda Copper is gone, Swift & Company is now a subsidiary of Brazilian food processor JBS, and Owens-Illinois was removed in 1985 on the same day of the year that Alcoa won its court case -- it's also the only metals company remaining on the Dow today.

I'm lovin' it, internationally
The first international McDonald's (NYSE: MCD  ) franchise opened in Canada, in the British Columbia town of Richmond, on June 1, 1967. McDonald's had gone public only two years prior, and it was already growing quickly in the United States -- by the end of the '60s, there would be more than 1,000 Golden Arches across the United States. At that point, three years after the first Canadian outpost opened its doors, there were 50 McDonald's franchises north of the border.

McDonald's Canada, as the division is now known, grew rapidly throughout the '70s, largely thanks to George Cohon, who became the Eastern Canada franchisee in 1968 and combined his operations with the Western Canada franchisees to create the present operating subsidiary in 1971. By 1977 there were 250 Canadian McDonald's franchises.

Two years later, at the start of June in 1979, McDonald's introduced one of its most Iconic products to a national audience: the Happy Meal. Robert Bernstein, an advertiser working for McDonald's Midwestern operations, had devised the Happy Meal two years earlier. It was inspired by cereal boxes, which have for decades appealed to kids through toy inserts and games or other amusements printed on back panels.

After a successful Kansas City test run in the fall of 1977, McDonald's put the new product on menus nationwide. The first Happy Meal had a circus-like wagon train theme and came with a choice of stencil, puzzle, wrist wallet, ID bracelet, spinning top, or McDonald's-themed character erasers. Several months later, the first branded Happy Meal rolled out nationwide to promote Star Trek: The Motion Picture, which seems like an odd choice of film to promote to children who had largely not been born when the original Star Trek series was canceled a decade earlier.

Today, McDonald's derives great benefit from its two June-related milestones. McDonald's joined the Dow six years after launching the Happy Meal across all franchises, and it has been one of the index's best performers ever since. McDonald's Canada now serves 2.5 million Canadians every day at more than 1,400 restaurants across the country. The subsidiary claims that its operations generate more than 200,000 jobs and $4.5 billion in Canadian economic activity when indirect impacts are taken into account. The Happy Meal, which cost only $1 when introduced in 1979, now accounts for more than $3 billion of McDonald's annual sales, and more than 1.5 billion toys are given away in Happy Meal boxes every year.

McDonald's turned in a dismal year in 2012, underperforming the broader market by 25%. Looking ahead, can the Golden Arches reclaim its throne atop the restaurant industry, or will this unsettling trend continue? Our top analyst weighs in on McDonald's future in a recent premium report on the company. Click here now to find out whether a buying opportunity has emerged for this global juggernaut.

LinkedIn Unveils a New Navigation Bar

In an effort to increase user engagement, LinkedIn  (NYSE: LNKD  ) has redesigned its products over the past few months. This time, the company is giving its navigation bar a face-lift.

Soon, when LinkedIn users log onto the site, they will see a simplified menu of tabs at the top of the page. In providing a more streamlined experience, members will access their settings and account options through their profile picture.

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Source:  LinkedIn Blog.

Perhaps most striking is that LinkedIn has placed the search bar front and center. Recognizing that search is a productivity tool, the company thinks the redesign will help users find what they're looking for more efficiently. 

Over the next month, LinkedIn will be rolling out the new navigation bar for all English-speaking members worldwide.

5 Best Low Price Stocks To Invest In 2014

Fast-food chains are making a formidable attempt at adapting to shifting consumer tastes. For decades, a solid cheeseburger at a low price had been enough to drive the rapid expansion of the businesses throughout the United States and overseas, but now it appears that fast eaters want more. With new products such as a Pretzel Bacon Cheeseburger, and health-oriented flatbread sandwiches, The Wendy's Company (NASDAQ: WEN  ) is proving to be a formidable competitor to the long-reigning number one chain, McDonald's (NYSE: MCD  ) . The stock is feeling full as well, up more than 35%�in 12 months. The question now is, can the stock still move higher as management continues its renovation, or has this opportunity passed?

Refreshed
New menu items aren't the only signs of change at Wendy's, and certainly not the only elements that analysts predict will show big results come the company's earnings release next week.

5 Best Low Price Stocks To Invest In 2014: Sina Corporation(SINA)

SINA Corporation provides online media and mobile value-added services (MVAS) in the People?s Republic of China. It provides advertising, non-advertising, and free services through SINA.com, Weibo.com, and SINA Mobile. SINA.com offers free interest-based channels that provide region-focused format and content, including news, sports, automobile-related news, finance, entertainment, luxury, technology, digital, tools, collectibles, video, music, and wireless application protocol, as well as interactive platform for fashion-conscious users to share comments and ideas on a range of topics, such as health, cosmetics, and beauty. The company's microblogging platform, Weibo.com, enables its users to follow the hottest topics being discussed online, as well as discussions related to people they know. Weibo accounts consist of celebrities, commercial enterprises, government entities, and grass root Internet users. Its SINA Mobile service allows users to receive news and informatio n, download ring tones, mobile games and pictures, and participate in dating and friendship communities. The company also offers SINA Game, which serves as an interactive platform that provides users with downloads and gateway access to popular online games; SINA eReading, a shop for book reviews; SINA.net, an enterprise solutions platform to assist businesses and government bodies; and SINA Mall, an online shopping Website. In addition, it provides a platform for Chinese bloggers; photo-sharing platform; free email, VIP mail, and corporate email for enterprise users; audio and video-based instant messaging tools; proprietary search technology; and classified advertising services, as well as hosts topic-specific discussion forums in Chinese language; and creates user-maintained and supported online communities. The company has strategic cooperation agreement with China Unicom (Hong Kong) Limited. SINA Corporation was founded in 1997 and is headquartered in Shanghai, the Peop le?s Republic of China.

5 Best Low Price Stocks To Invest In 2014: Ishares Nasdaq Biotechnology (IBB)

iShares Nasdaq Biotechnology Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the NASDAQ Biotechnology Index (the Index). The Index consists of securities of NASDAQ-listed companies that are classified according to the Industry Classification Benchmark as either biotechnology or pharmaceuticals, and which also meet other eligibility criteria. The Index is one of the eight sub-indices of the NASDAQ Composite, which measures all common stocks listed on The NASDAQ Stock Market, Inc.

The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. The Fund�� investment advisor is Barclays Global Fund Advisors.

Top Stocks To Buy: Almost Family Inc(AFAM)

Almost Family, Inc., together with its subsidiaries, provides home health services. The company operates in two segments, Visiting Nurse Services and Personal Care Services. The Visiting Nurse Services segment provides a range of Medicare-certified home health nursing services to patients in need of recuperative care, following a period of hospitalization or care in another type of inpatient facility. It also offers special clinically-based protocols, including frail elderly care management, optimum balance, cardiocare, orthopedic, and urology programs. This segment provides its services to patients in lieu of additional care in other settings, such as long term acute care hospitals, inpatient rehabilitation hospitals, or skilled nursing facilities. The Personal Care Services segment provides services, such as personal care, medication management, meal preparation, caregiver respite, and homemaking services in patients? homes primarily on an as-needed and hourly basis. Th e company offers its services through its service locations in Florida, Kentucky, Ohio, Connecticut, New Jersey, Massachusetts, Missouri, Alabama, Illinois, Pennsylvania, and Indiana. It operates approximately 47 Medicare-certified home health agencies with a total of 106 locations, as well as operates 60 personal care locations. Almost Family, Inc. was founded in 1976 and is based in Louisville, Kentucky.

5 Best Low Price Stocks To Invest In 2014: Affymax Inc.(AFFY)

Affymax, Inc., a biopharmaceutical company, engages in the development of drugs for the treatment of serious and life-threatening conditions. It develops peginesatide (Hematide), which has completed Phase III clinical trial for the treatment of anemia associated with chronic renal failure. Hematide is a synthetic peptide-based erythropoiesis stimulating agent designed to stimulate production of red blood cells. The company has strategic alliance agreements with Takeda Pharmaceutical Company Limited and Nektar Therapeutics AL, Corporation to develop and commercialize Hematide. Affymax, Inc. was founded in 2001 and is based in Palo Alto, California.

Advisors' Opinion:

• [By Jonas Elmerraji]

  Nearest Resistance: $2
  
  Nearest Support: $1.55
  
  Catalyst: Turnaround Murmurs

  Affymax (AFFY) is seeing surprising trading volume on the Nasdaq today for a third session in a row. The sudden spike in the biopharmaceutical firm surrounds earnings -- not the numbers per se but the comments made by management during the earnings call. Speculators think that those comments could bode well for AFFY's diabetes drug, but the rumors are still very much just that.

  Between hints at bankruptcy and management opting to fire themselves, AFFY has been in freefall in 2013. Even though the stock has more than doubled this week, it's still down 90% on the year. And at this point, headline risk is still far too high to consider this stock a high-probability trade.

  If you've got skin in the game and want to speculate on AFFY's fortunes, that's one thing. Buying because of this week's price action alone would be a mistake.

5 Best Low Price Stocks To Invest In 2014: Intervest Bancshares Corp. (IBCA)

Intervest Bancshares Corporation operates as the bank holding company for Intervest National Bank that provides commercial and consumer banking services. The company offers various deposit products, including certificates of deposit, individual retirement accounts, checking and other demand deposit accounts, negotiable order of withdrawal accounts, savings accounts, and money market accounts. Its loan portfolio comprises first mortgage loans secured by commercial and multifamily real estate properties, commercial real estate loans, multifamily loans, land loans, one to four family loans, commercial business loans, and consumer loans. The company also provides Internet banking services, automated teller machine services, wire transfers, automated clearing house transfers, direct deposit of payroll and social security checks, automated drafts for various accounts, and safe deposit boxes. It has one full-service banking office in New York City; and six full-service banking of fices in Pinellas County, Florida. Intervest Bancshares Corporation was founded in 1993 and is headquartered in New York, New York.