Analysts' Actions: GME MU PAY TFM YUM

NEW YORK (TheStreet) -- CHANGE IN RATINGS

Advanced Energy Industries (AEIS) was upgraded to buy at TheStreet Ratings.

Abercrombie & Fitch (ANF) downgraded at Wells Fargo to market perform from outperform. Estimates were also cut, with no signs of a recovery in sight, Wells Fargo said.

Gamestop (GME) was upgraded at Needham to buy from hold. $60 price target. Company is leveraged to new console releases, Needham said.

Micron (MU) was downgraded at Bank of America/Merrill Lynch to neutral from buy. Valuation call, based on a $20.50 price target, BofA/Merrill said.

Nucor (NUE) was downgraded at Wells Fargo to market perform from outperform. Valuation call, Wells Fargo said.

VeriFone Systems (PAY) was upgraded at Jefferies to buy from hold. Company is executing in FCF and should be positioned for some market share recovery in the first half of 2014, Jefferies said. $29 price target. Partner Re (PRE) was upgraded at UBS to buy from neutral. Upside to 2014/15 earnings, and company is trading at a discount despite having one of the strongest balance sheets in the industry, UBS said. $114 price target.

Everest Re (RE) was downgraded at UBS to neutral from buy. No more anticipated upside, valuation call, UBS said. $161 price target.

Fresh Market (TFM) was downgraded at Sterne Agee to neutral. $44 price target. Company has struggled to grow outside its core region, Sterne Agee said.

Target (TGT) was downgraded at Bank of America/Merrill Lynch to underperform from neutral. $60 price target. Sales and margin outlooks are deteriorating, BofA/Merrill said.

United Continental (UAL) was upgraded at Goldman Sachs to buy from neutral. $44 price target. Company can see multiple expansion in 2014, based on higher earnings growth, Goldman Sachs said.

US Steel (X) was downgraded at Wells Fargo to underperform from market perform. Company is already pricing in cost-cutting plans, Wells Fargo said.

Yum Brands (YUM) was upgraded at Bank of America/Merrill Lynch. $90 price target. Company can deliver solid growth in 2014 and deserves an expanded multiple, BofA/Merrill said.

WGL Holdings (WGL) was downgraded to hold at TheStreet Ratings.

Stock Comments / EPS Changes

Aruba Networks (ARUN) price target, EPS were increased at UBS. The company increased its own numbers, UBS said. Driven by lower opex and tax rates, UBS said. $19 price target and neutral rating.

Patterson Cos (PDCO) lowered its estimates and price target at UBS. The company lowered its own numbers. Dental segment sales growth fell short of management expectations, UBS said. $45 price target and neutral rating.

This article was written by a staff member of TheStreet.

IRS warns of new phone scam

The IRS says people in nearly every state have been targeted by a new phone scam.

NEW YORK (CNNMoney) Taxpayers, beware: Fraudsters impersonating IRS agents are calling people across the country demanding they pay taxes that they don't even owe.

The IRS warned of this "pervasive" scam on Thursday, saying it has been identified in nearly every state.

Innocent taxpayers -- often immigrants -- are answering their phones only to be informed they owe money to the IRS and need to pay it immediately by either loading money on a prepaid card or sending it via a wire transfer. If they argue or refuse to pay, scammers will threaten to arrest or deport them, or suspend their business or driver's license.

"In many cases, the caller becomes hostile and insulting," the IRS said in a statement.

These calls may be convincing, because the scammers use caller ID spoofing to make sure the IRS's toll-free phone number shows up on the caller ID, they make up bogus badge numbers and may know the last four digits of a victim's Social Security number. Sometimes victims will even hear background noise that sounds like a call center.

  3 tax scams to avoid

And if the victim hangs up, they may get another call seconds later from the same scammer -- or another one -- saying they are with the police or an agent at the DMV.

To avoid getting duped, don't believe anyone claiming to be the IRS who calls to ask for your credit card number or requests a prepaid debit card or wire transfer. The IRS said it will never ask for payments to be made by prepaid debit card or wire transfer, and it typically makes its first contact with taxpayers by mail.

You should also be immediately suspicious of any caller claiming to be from the IRS and demanding money, especially if you aren't aware that you owe anything. Nasty language and threats should also be a red flag.

"If someone unexpectedly calls claiming to be from the IRS and threatens police arrest, deportation or license revocation if you don't pay immediately, that is a sign that it really isn't the IRS calling," IRS Acting Commissioner Danny Werfel said in a statement.

To report any calls like this, contact the Treasury Inspector General for Tax Administration at 800-366-4484.

Samsung Is Latest Foreign Punchbag For China's CCTV

Fresh from its assertion that Starbucks coffee is overpriced in China – not to mention foul-tasting – China's state broadcaster CCTV has taken aim at Samsung over faulty chips in smartphones. A CCTV report found that its popular Galaxy handsets were crashing frequently. Bloomberg reports that Samsung, the top-selling handset producer in China, told CCTV that it was fixing the faulty phones for free. Another strike to CCTV, which has become a thorn in the side of foreign brands from Yum Brands to Apple. A parallel wave of government probes into price-fixing and backhanders by multinationals has also put them on guard.

Media exposes of poor service and ripoffs by consumer companies are populist fare in most countries, and China is no exception. Dirty slaughterhouses should be exposed, along with crashing phones (or healthcare websites). The high price of goods in China certainly annoys consumers, which is why CCTV seized on the different price for lattes in China and Chicago to try to show that Starbucks was profiteering (it claims that its margins are similar in U.S.) But let's face it, these campaigns are mostly froth. CCTV goes after foreign brands that can be shamed into kowtowing. Starbucks charges high prices for crap coffee. So do other cafes in China. But Starbucks is American, and so fair game for the party's broadcast monopoly.

Does The QHIX Have Q4 Systems Destined For Greatness?

It has been a great year for Q4 Systems (NASDAQ: QFOR) and its shareholders. Although it is a small cap firm in the information technology sector, clients of Q4 Systems have included such blue chips as Alcoa, Wal-Mart, and Walgreens, among many others.

A previous article on Benzinga, "A Small Cap That is Cashing in on ObamaCare," detailed why Q4 Systems would do well as a result of the Affordable Care Act, or ObamaCare.

With the stock price up more than 500 percent for the last year of market action, that has clearly happened. Revenues are increasing by 40 percent on a quarterly basis, according to Yahoo Finance. Unlike many small caps, Q4 Systems posts a gross profit, has hundreds of employees, operates in several companies, and as a high retention rate for clients. As a result, while it is now trading at under $1, two of the most recent analyst recommendations have Q4 Systems at $5.25 a share and $7.00 a share.

Shareholders could be rewarded even more if the projections for the QHIX solutions prove to be true.

Related: Buying Stocks "When You Have the Money"

Q4 Systems offers the QHIX public health insurance exchange and the QHIX private health insurance exchange. These are packages to assist clients in both the public and private sector to select the best package of benefits that comply with ObamaCare. The QHIX programs work very well.

How well?

At present, the market cap of Q4 Systems is just under $60 million. A recent investor conference predicted that revenues from the QHIX solutions would be at a run rate of $48 million yearly by the end of 2014. That would contribute to overall revenue for Q4 Systems totalling $128 million, per the projections of the analyst community that follow the stock.

For value and growth investors, that would make Q4 Systems a very appealing stock.

To have revenues at more than twice the market capitalization of a company is very enticing for value investors. A 40 percent quarterly growth rate for revenues should get the attention of growth investors. With a gross profit of $6.38 million, Q4 Systems is obviously a company that is well managed.

That is has clients such as Wal-Mart, Alcoa, and Walgreen is testament to the appeal of the products and services of Q4 Systems.

Posted-In: Affordable Care Act Alcoa Wal-Mart WalgreensLong Ideas Small Cap Analysis Technicals Economics Markets Analyst Ratings Trading Ideas General Best of Benzinga

(c) 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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UTX may furlough 5K workers, blames shutdown

HARTFORD, Connecticut (AP) — United Technologies says it may furlough more than 5,000 workers if the government shutdown continues into next month.

The company said Wednesday that its Sikorsky division, which makes Black Hawk helicopters, would be hit first. It expects nearly 2,000 employees, including those employed at facilities in Connecticut, Florida and Alabama, will be furloughed Monday.

The Hartford, Conn.-based manufacturer said it would halt some defense manufacturing because government inspectors themselves have been furloughed. That leaves it without the necessary federal approvals to make military products.

If the shutdown continues through next week, the furloughs would extend to its Pratt & Whitney and UTC Aerospace Systems division, bringing the total number of employees on hold up to 4,000. That number could exceed 5,000 if the shutdown stretches into next month.

United Technologies employs about 218,300. Of its annual revenue of $57.7 billion in 2012, $10.1 billion came from the U.S. government.

"This is what happens when House Republicans decide that political gamesmanship is more important than people's jobs," Connecticut's Gov. Dannel P. Malloy, a Democrat, said. "It's unconscionable that so many working families would be unfairly put in this situation."

Members of Connecticut's Democratic Congressional delegation also called for House Republicans to end the budget impasse.

"These wounds are tragically self-inflicted and dramatize the cumulative and increasing destructive economic effects of the shutdown," said Sen. Richard Blumenthal.

U.S. Rep. Rosa DeLauro, whose district includes Sikorsky's headquarters, said, "The political games must end to keep these hardworking men and women on the job, prevent further pain for working families and end the damage it is inflicting on our economy."

The partial government shutdown, which took effect Tuesday, has idled roughly 800,000 "non-essential" federal workers.

United Technolog! ies' stock fell $2.40 to close at $104.98 Wednesday.

UniPixel (UNXL) Just Needs One More Nudge (and maybe not even that)

My enthusiasm for UniPixel Inc. (NASDAQ:UNXL) hasn't exactly been veiled; I penned bullish comments on the stock back on July 10th and August 12th. Unfortunately, my enthusiasm hasn't borne fruit - UNXL is up a little since my initial call a month and a half ago, but we've yet to see the explosive bullish move I figured was on the way. BUT, that may be about to change... like, today.

If you're not familiar with the company, UniPixel makes tablet and smartphone touchscreens. And to be more specific, it makes superior touchscreens, in that they consume less power, and cost less to make. Clearly it's a leap forward for consumer technology companies, though given the length of time (and headache) it took for UNXL to come up with the technology, anything less than a breakthrough would have been disappointing.

The underlying corporate details are secondary at this point, however. More than anything, UNXL is a trade, and it's on the verge of becoming trade-worthy.

Even the last time I looked at UniPixel Inc. in early July we had already seen horizontal support verified right around $12.00. In fact, it was that support and the almost-cross above the 20-day moving average line (blue) that compelled me in the first place. Though it took a while - and took another retest of the floor at $12.00 - UNXL finally started to roll higher by early August. In fact, it had pushed its way above the 20-day and 50-day moving average line (purple) by the 12th, prodding my second bullish call on the stock.

As you can see, though shares have made a profitable move in the meantime, it wasn't a straight-line move; UNXL pulled back to retest that 20-day and 50-day moving averages a week and a half ago. It was that retest and subsequent snap-back that sealed the bullish deal in my view, especially seeing that the bullish volume behind that move was growing.

With all of that being said, there's just one more hurdle that needs to be cleared before the fireworks really start.... the 200-day moving average line (green) needs to be crossed.

The undertow is already bullish; it has been since early August. If we can just clear the 200-day average at $19.30 though, the pace should accelerate. It matters right now, because UniPixel Inc. shares are currently priced at $19.30, and rising. Today could be the day. In fact, while waiting for a clean break above the 200-day moving average line would be prudent, waiting may also leave too much money on the table. The gambler side of you may want to go ahead and dive in, based on how everything has materialized up to this point.

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Advisors Overwhelmed by Product Pitches: Study

Advisors will probably say they don't need a study to tell them they're barraged by product pitches; for manufacturers, however, the results could be eye-opening.

The typical advisor receives 50 to 100 different marketing and sales contacts a week in various formats, according to a new report from the Boston-based research and consulting firm Practical Perspectives.

Additionally, the report, “Communicating with Financial Advisors–Insights and Opportunities 2013,” found roughly one in three advisors indicate they actually receive significantly more communications.

“Many advisors find the volume of marketing and sales contact to be overwhelming and are challenged to devote time to reflect on these outreach efforts,” the report says. “Consequently, a large portion of the messaging is given cursory attention or ignored, especially from firms that advisors are not currently engaged with.”

Howard Schneider, Practical Perspectives’ president and author of the report, says advisors see benefit in the marketing and sales outreach they receive from product providers and other sources, but most don’t have the time to digest the messages given other day-to-day priorities.

“Providers are spending countless resources on outreach each year to build awareness, loyalty and sales,” Schneider says. “Many advisors indicate these contacts do influence key factors such as their willingness to consider a particular provider or their loyalty to a provider. The struggle for firms is to use best practices to gain advisors' attention in a highly cluttered environment with so many firms competing for the chance to connect.”

Additional findings of the report include:

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Check out 3 Steps to Reaching Prospects Online on ThinkAdvisor.

Refineries Ramp Up Production While Crude and Gasoline Supply Shrinks

The U.S. Energy Information Administration (EIA) released its weekly petroleum status report this morning. U.S. commercial crude inventories decreased by 1.4 million barrels last week, maintaining a total U.S. commercial crude inventory to 359.1 million barrels, and remaining near the upper limit of the five-year range for this time of the year.

Total gasoline inventories decreased by 4 million barrels last week and are now in the upper half of the five-year average range. Total motor gasoline supplied (the EIA's measure of consumption) averaged 9.2 million barrels a day over the past four weeks — up by 2% from the same period a year ago.

Distillate inventories rose by 900,000 barrels last week and remain near the lower limit of the average range. Distillate product supplied averaged about 3.8 million barrels a day over the past four weeks, up about 2.8% when compared with the same period last year. Distillate production totaled about 4.9 million barrels a day last week.

The American Petroleum Institute last night reported that crude inventories fell by 1.2 million barrels last week, together with a decline of 3.7 million barrels in gasoline supplies and a rise of 1.8 barrels in distillate supplies. Platts estimated a drop of 1 million barrels in crude inventories, a drop of 1.5 million barrels in gasoline inventories, and an increase of 1 million barrels in distillate inventories.

Crude prices were down slightly before the EIA report at around $104.70 a barrel and fell further to around $104.60 shortly after the report was released.

For the past week, crude imports averaged about 8 million barrels a day, up about 34,000 barrels a day from the previous week. Refineries were running at 91% of capacity, with daily input of 15.8 million barrels a day, about 200,000 barrels a day more than the previous week.

This marks the eighth straight week of declines in crude stockpiles, yet inventories remain quite high and gasoline supply continues to be plentiful. Refinery throughput is up by about 200,000 barrels a day as refiners continue to grow their exports. As refiners begin to switch to winter fuel blends, inventories likely will continue to fall.

Gasoline prices continue to decline nationally. According to the AAA Fuel Gauge report, a gallon of regular gasoline costs about $3.53 today compared with about $3.54 a week ago. Last month the price was $3.67 a gallon and one year ago the price of a gallon of regular gasoline was $3.72.

The United States Oil ETF (NYSEMKT: USO) is down 0.16%, at $37.45 in a 52-week range of $30.79 to $38.62.

The United States Gasoline ETF (NYSEMKT: UGA) is up about 0.4%, at $60.40, in a 52-week range of $53.35 to $65.86.

The United States Brent Oil ETF (NYSEMKT: BNO) is down 0.3%, at $84.68 in a 52-week range of $73.76 to $88.71.

Finding Growth in a Cloud

This technology company is facing mounting skepticism and ongoing drops in revenue, and MoneyShow's Jim Jubak, wonders if this new strategy is enough to overcome the obstacles still in its path.

Yesterday, January 21, International Business Machines (IBM) reported a seventh straight quarterly drop in revenue. Revenue fell 5.5% to $27.7 billion for the fourth quarter of 2013. That was below the $28.3 billion projected by analysts.

The company specific problem for IBM is that revenue for its older core hardware business is falling like a stone, while the company is still trying to build revenue for newer businesses, such as cloud services.

In the fourth quarter, for example, the systems and technology hardware division reported a 26% drop in revenue year over year. (Net income fell 79% from a year ago.) For the quarter, revenue in this division came to $4.3 billion.

It's no longer enough for IBM to target software and services, in general, to make up for the shortfall in hardware. IBM's software division didn't exactly tear up the track in the fourth quarter, with revenue climbing just 3% year over year. Technology services revenue fell 4% in the quarter, and business services revenue advanced just 1%.

So, where is growth supposed to come from for IBM? Cloud computing will play a central role, if I can judge from the deals IBM CEO Ginni Rometty has pursued since taking over as head of the company two years ago. Her biggest acquisition was the $2 billion purchase of cloud computing storage company SoftLayer Technologies in 2013. IBM has recently said it will invest $1.2 billion in its cloud services business in 2014. And this emphasis on the cloud ties in with the company's decision to build a new business unit around its Watson supercomputer. The idea is that a Watson supercomputer can analyze large volumes of data and let customers mine that data.

Finding growth in the cloud looks like a reasonable strategy. IBM's cloud revenue climbed 69% in 2013 to $4.4 billion.

But I think it does lead to two problems for investors in IBM.

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5 Foreign Stocks to Trade for Gains

BALTIMORE (Stockpickr) -- Foreign stocks have been struggling in 2013, but that isn't stopping a handful of names from looking tradable this week.

Since the calendar flipped over to 2013, the S&P 500 has rallied 15%. Other countries haven't had quite the same upside over the course of this rally: the Euro Stoxx 50 is up a meager 4.8%; Korea's KOSPI is down 3.2%; India's Sensex has dropped 6%; Brazil's BOVESPA has sunk more than 15%.

One of the few exceptions has been Japan, with a 34% rally in the Nikkei 225 year-to-date.

According to the latest data released on Tuesday morning from the OECD, emerging economies are showing more sluggish economic recovery than more established countries are. A quick look at market performance anytime this year would've told you the same exact thing.

But that shouldn't stop you from trading foreign stocks in 2013. That's why we're taking a technical look at five foreign stocks to trade for gains this week.

For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.

So, without further ado, let's take a look at five technical setups worth trading now.

Canadian National Railway

It's been a pretty lackluster year for shares of Canadian National Railway (CNI). The $40 billion rail transport stock has treaded water for most of 2013, gaining just under 4% in these last eight months. But that sideways churn is exactly what makes this stock tradable right now. Here's what I mean.

Sure, CNI has spent the year sideways, but what's key is that this stock has spent the year sideways in a tight, well-defined range with resistance at $102 and support down at $94. CNI's setup is called a rectangle pattern. It gets its name because it essentially "boxes in" shares in between those two price levels. Now, with shares testing support, fast-paced traders can buy the bounce on up to $102 -- or wait for a breakout to the top-side of the pattern through $102.

Either way, a dip through $94 is a sell signal for this stock. If buyers can't support this stock anymore, a failure at $94 is going to be the first sign in a long fall. Consider it a sell (or short) signal.

Nippon Telegraph & Telephone

The strength in Japanese stocks is evident in Nippon Telegraph & Telephone (NTT), the $60 billion telco in the Land of the Rising Sun. Shares of NTT are up close to 22% since the first trading session in January -- and now, a technical setup points to even higher ground in the month ahead.

That's because NTT is currently forming an ascending triangle pattern, a bullish price setup that's formed by horizontal resistance above shares at $27 and uptrending support to the downside. Basically, as NTT bounces in between those two technical levels, it's getting squeezed closer and closer to a breakout above resistance. When that move above $27 happens, traders have their buy signal.

At first glance, the abundance of gaps on NTT's chart may be alarming. But those gaps, called suspension gaps, are just the rest of off hours trading on the Tokyo and London exchanges. From a technical standpoint they're irrelevant, but they're common in foreign traded names that are dual-listed overseas.

Costamare

Thinks aren't looking quite so auspicious for shares of small-cap Greek shipping stock Costamare (CMRE). Greek equities enjoyed some buoyancy this year, the result of getting oversold due to headline risk during the economic crisis in the Eurozone. But this stock's down days don't look behind it yet.

That's because Costamare is currently forming the bearish opposite of the bullish pattern in NTT: a descending triangle. CMRE's setup is formed by downtrending resistance above shares and horizontal support down at $16.75 that shares are getting pushed down into. A move through $16.75 is the signal to sell this stock.

Whenever you're looking at any technical price pattern, it's critical to think in terms of buyers and sellers. Triangles, rectangles, and other price pattern names are a good quick way to explain what's going on in this stock, but they're not the reason it's tradable. Instead, it all comes down to supply and demand for shares.

That support line at $16.75 is a price where there's an excess of demand of shares; in other words, it's a place where buyers have been more eager to jump in and buy at lower levels than sellers have been to unload them. That's what makes the move below it so significant -- a breakdown indicates that sellers are finally strong enough to absorb all of the excess demand below that price level. Wait for that signal to happen before you bet against CMRE.

BT Group

You don't have to be an expert technical analyst to figure out what's going on in shares of UK-based BT Group (BT). This chart has been moving up and to the right all year long, bouncing its way higher in a tight-range. So even though shares of BT have already made their way 38% higher since the start of the year, this stock is well positioned to keep its trajectory going.

BT has had the same trendline support level in place since all the way back in November, a level that held when the S&P broke its own similarly-positioned uptrend. That's a considerable sign of strength. Now the ideal time to be a buyer in BT comes on a bounce off of that support level.

Buying off a support bounce makes sense for two big reasons: it's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). While BT could stand to pull back some before it makes sense to jump in, the strength of this channel makes it worth watching now.

If you decide to jump in, I'd recommend keeping a protective stop in place at the 50-day moving average.

KB Financial Group

Korean bank KB Financial Group (KB) has a chart that's looked a whole lot less attractive year-to-date than most of the other names on this list. But with shares pointing to some early signs of a major reversal, traders need to watch KB closely this week.

KB is currently forming an inverse head and shoulders setup, a bullish reversal pattern that indicates exhaustion among sellers. The inverse head and shoulders is formed by two swing lows that bottom out at approximately the same price level (the shoulders), separated by a deeper swing low (the head). The buy signal comes when shares push through the neckline that's acted as resistance over the course of the pattern. Since this setup has been forming in the long-term, the upside implications are long-term once it triggers.

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

 

Follow Jonas on Twitter @JonasElmerraji

 

Best Medical Companies To Own For 2014

Almost half of Americans (47%) say the Affordable Care Act, aka Obamacare, is a bad idea, according to a fresh Wall Street Journal/NBC News poll.

The three healthcare professionals I spoke with this week believe the law overhauling the nation's healthcare system is a terrible idea.

All the doctors are disappointed with the real Obamacare facts they know to be true...

Dr. Michael Lospinuso of Monmouth County, NJ-based Orthopaedic Spine Institute, told Money Morning the sentiment is "unanimous" among his colleagues.

The chief of spinal surgery at Meridian Health, a leading not-for-profit health care provider in New Jerse's and named one of Fortune's "100 Best Companies to Work For" for four consecutive years (2010-2013), the widely accomplished Dr. Lospinuso just returned from Zurich's prestigious Schulthess Clinic, where he was invited to see firsthand how European medicine works.

He likens Obamacare to the two-tier medical insurance system in Europe. The top, or platinum level, is for those who buy private insurance and in return get top-notch care. Meanwhile, the lower level is for those who receive general practice care from the state.

Best Medical Companies To Own For 2014: Multicell Technologies Inc (MCET)

MultiCell Technologies, Inc., incorporated on April 28, 1970, is a biopharmaceutical company. The Company is engaged in developing novel therapeutics and discovery tools to address unmet medical needs for the treatment of neurological disorders, hepatic disease, cancer and interventional cardiology and peripheral vessel applications. The Company�� portfolio of lead drug candidates is in various stages of discovery optimization, and preclinical and clinical development, and includes MCT-125, a Phase II therapeutic candidate for the treatment of PMSF, which has demonstrated efficacy in a 138-patient Phase IIa clinical trial; MCT-465, a preclinical synthetic dsRNA therapeutic candidate and potent immune enhancer for the treatment of solid tumor cancers, such as those expressing TLR-3; MCT-475, a discovery stage antibody therapeutic candidate used in combination with dsRNA for the treatment of solid tumor cancers, and MCT-485, a discovery stage dsRNA therapeutic candidate with tumor cytolytic properties for the treatment of certain cancers.

MultiCell is pursuing research and development targeting degenerative neurological diseases, including multiple sclerosis (MS) and cancer. The Company�� therapeutics business addresses significant unmet medical needs for the treatment of neurological disorders and cancer through modulation of the innate and adaptive immune response. The Company�� therapeutic development platform includes several patented techniques used to isolate, characterize and differentiate stem cells from human liver; control the immune response at transcriptional and translational levels through double-stranded RNA (dsRNA)-sensing molecules such as the Toll-like Receptors (TLRs), RIG-I-like receptor (RLR), and Melanoma Differentiation-Associated protein 5 (MDA-5) signaling; generate specific and potent immunity against key tumor targets through a novel immunoglobulin platform technology; and modulate the noradrenaline-adrenaline neurotransmitter pathway.

The Com! pany�� medical device development platform is based on the design a next-generation bioabsorbable stent, the Ideal BioStent, for interventional cardiology and peripheral vessel applications. The Company�� Ideal BioStent is a stent incorporating salicylate, the active component in aspirin, directly into the polymer chain. The Ideal BioStent also incorporates Sirolimus (rapamycin) in addition to salicylate, providing anti-restenotic therapy similar to commonly used drug-eluting metal stents.

MCT-125 for the treatment of fatigue in patients with multiple sclerosi

Fatigue is the most common symptom in MS. Overall, greater than 75% of persons with MS report having fatigue, and 50% to 60% report it as the worst symptom of their disease. The Company exclusively licensed the drug candidate LAX-202 from Amarin Neuroscience Limited (Amarin) for the treatment of fatigue in patients suffering from MS.

MCT-465, MCT-475 and MCT-485 for the treatment of cancer

MCT-465, MCT-475, and MCT 485 are in preclinical development, and are being investigated as prospective treatments for primary liver cancer and triple negative breast cancer. MCT-465 is a high molecular weight synthetic dsRNA (polyA:polyU, of 70bps) with immune-enhancing properties. MCT-485 is a low molecular weight synthetic dsRNA (polyA:polyU of 5bps) with direct tumor cytolytic properties. MCT-475 is a chimeric recombinant therapeutic antibody molecule that carries tumor-associated antigen peptide recognition in its complimentary determining region (CDR).

Best Medical Companies To Own For 2014: Curis Inc.(CRIS)

Curis, Inc., a drug discovery and development company, focuses on the research and development of cancer therapeutics. The company, under collaboration with Genentech, Inc., is conducting a pivotal Phase II clinical trial on its lead molecule, GDC-0449 in advanced basal cell carcinoma patients, as well as various Phase II clinical trials in first-line metastatic colorectal cancer and advanced ovarian cancer patients. It is also evaluating CUDC-101, a small molecule that is in a Phase I clinical testing and is designed to target histone deacetylase, epidermal growth factor receptor, and epidermal growth factor receptor 2. In addition, Curis has a development candidate, Debio 0932, which is a Heat Shock Protein 90 or Hsp90 inhibitor. The company holds a license agreement with Debiopharm related to its Hsp90 technologies. Further, it involves in preclinical testing for the development of candidates from its targeted cancer programs. The company was founded in 2000 and is base d in Lexington, Massachusetts.

Advisors' Opinion:

• [By Monica Gerson]

  Curis (NASDAQ: CRIS) dipped 18.97% to $3.16 in the pre-market session after the company reported Q3 financial results and provided CUDC-427 development update.

Hot Low Price Companies To Invest In Right Now: OncoSec Medical Inc (ONCS)

OncoSec Medical Incorporated, incorporated on February 8, 2008, is an emerging drug-medical device company. The Company focused on designing, developing and commercializing medical approaches for the treatment of solid cancers. In March 2011, the Company acquired from Inovio Pharmaceuticals, Inc. (Inovio) certain assets related to the use of drug-medical device combination products for the treatment of different cancers.

The Company�� acquired assets relate to certain non-deoxyribonucleic acid (DNA) vaccine technology and property relating to selective tumor ablation technologies, which it refers to as the OncoSec Medical System (OMS), a therapy which uses an electroporation device to facilitate delivery of chemotherapy agents, or nucleic acids encoding cytokines, into tumors and/or surrounding tissue for the treatment and diagnosis of various cancers. As of January 24, 2012, the Company had not generated any revenue from operations.

Advisors' Opinion:

• [By James E. Brumley]

  How does the old saying go? Beggars can't be choosers? Two weeks ago, yours truly penned some bullish comments regarding OncoSec Medical Inc. (OTCMKTS:ONCS). The long and short of it was, if ONCS could clear a technical ceiling around $0.36, then life would get much easier for the bulls.

Best Medical Companies To Own For 2014: Algeta ASA (ALGETA.OL)

Algeta ASA is a Norway-based biotechnology company engaged in the development of targeted cancer therapies based on its alpha-pharmaceutical platform. The Company�� principal product is Alpharadin for the treatment of bone metastases resulting from castration-resistant prostate cancer. The Company�� pipeline also includes Alpharadin for the treatment of bone metastases resulting from breast cancer, a combination of Alpharadin with Taxotere for the treatment of bone metastases resulting from prostate cancer and Thorium-227 showing various cancer indications. The Company develops Alpharadin in a development and marketing cooperation with Bayer Schering Pharma. Algeta ASA is active through the two wholly owned subsidiaries, Algeta Innovations AS and Algeta UK Limited. On April 12, 2012, the Company announced that it estabilished a subsidiary active in the United States, Algeta US.

Best Medical Companies To Own For 2014: Cannabis Science Inc (CBIS.PK)

Cannabis Science, Inc., incorporated on May 4, 2007, is a development-stage company. The Company is engaged in the creation of cannabis-based medicines, both with and without psychoactive properties, to treats disease and the symptoms of disease, as well as for general health maintenance. On February 9, 2012, the Company acquired GGECO University, Inc. (GGECO). On March 21, 2012, the Company acquired Cannabis Consulting Inc. (CCI Group).

The Company is engaged in medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products.

Best Medical Companies To Own For 2014: Telik Inc (TELK)

Telik, Inc. (Telik), incorporated in 1988, is a clinical-stage drug development company focused on discovering and developing small molecule drugs to treat cancer. The Company discovers its product candidates using the Company�� drug discovery technology, Target-Related Affinity Profiling (TRAP). TELINTRA, its principal drug product candidate in clinical development, is a small molecule glutathione analog inhibitor of the enzyme glutathione S-transferase P1-1 (GST P1-1). TELCYTA, its other product candidate, is a small molecule cancer drug product candidate designed to be activated in cancer cells.

Clinical Product Development

TELINTRA is the Company�� lead small molecule product candidate in clinical development for the treatment of blood disorders, including cancer. It has a mechanism of action and acts by inhibiting GST P1-1, an enzyme that is involved in the control of cellular growth and differentiation. Inhibition of GST P1-1 results in the activation of the signaling molecule Jun kinase, a regulator of the function of blood precursor cells. Preclinical tests show that TELINTRA is capable of causing the death or apoptosis of leukemic or malignant blood cells, while stimulating the growth and development of normal blood precursor cells. TELINTRA has been studied in Myelodysplastic Syndrome (MDS) using two formulations. A liposomal formulation was developed for intravenous administration of TELINTRA and was used in Phase I and Phase II studies in MDS patients. The results from the Phase II intravenous liposomal TELINTRA clinical trials demonstrated that TELINTRA treatment was associated with improvement in all three types of blood cell levels in patients with all types of MDS, including those in intermediate and high-risk groups. An oral dosage formulation (tablet) was subsequently developed and results from a Phase I study with TELINTRA tablets showed clinical activity and the formulation to be well tolerated. In June 2011, the Company initiated a Phase II clinical ! trial to evaluate TELINTRA tablets. In October 2011, the Company initiated an additional Phase IIb clinical trial to evaluate TELINTRA tablets. '

The activity and safety profile of tablet formulation allowed the Company to complete a Phase II trial of TELINTRA tablets in MDS. The primary objective of the Phase II TELINTRA tablet study was to determine the efficacy of TELINTRA. A multivariate logistic regression analysis was conducted to identify MDS disease prognostic factors associated with erythroid improvement response rates, including prior MDS treatment, age, gender, the international prognostic scoring system (IPSS), risk, Eastern Cooperative Group performance status, years from MDS diagnosis, MDS World Health Organization subtypes, anemia only versus anemia plus other cytopenias, dose schedule and starting dose. Results from this study show that TELINTRA is the first GSTP1-1 enzyme inhibitor shown to cause clinically reductions in red blood cell transfusions, including transfusion independence in low to intermediate-1 risk MDS patients, as well as improvement in platelet count and white blood cell levels in certain patients. TELINTRA, administered orally twice daily, appeared to be convenient and flexible for chronic treatment administration.

TELCYTA is a small molecule drug product candidate that the Company is developed for the treatment of cancer. TELCYTA binds to GST. TELCYTA has been evaluated in multiple Phase II and Phase III clinical trials, including trials using TELCYTA as monotherapy and in combination regimens in ovarian, non-small cell lung, breast and colorectal cancer. Results from these clinical trials indicate that TELCYTA monotherapy was generally well-tolerated, with mostly mild to moderate side effects, particularly when compared to the side effects and toxicities of standard chemotherapeutic drugs. When TELCYTA was evaluated in combination with standard chemotherapeutic drugs, the tolerability of the combinations was similar to that expected of each! drug alo! ne.

Clinical activity including objective tumor responses and/or disease stabilization was reported in the TELCYTA Phase II trials; however, TELCYTA did not meet its primary endpoints in the Phase III studies. Positive results from a Phase I-IIa multicenter, dose-ranging study of TELCYTA in combination with carboplatin and paclitaxel as first-line therapy for patients with non-small cell lung cancer, or NSCLC, were published in a peer reviewed publication. Clinical data demonstrated positive results of TELCYTA in combination with carboplatin and paclitaxel in the treatment of first-line lung cancer followed by TELCYTA maintenance therapy. As of December 31, 2011, the Company had an on-going investigator-led study at a single site of TELCYTA in patients with refractory or relapsed mantle cell lymphoma, diffuse B cell lymphoma, and multiple myeloma.

Preclinical Drug Product Development

The Company has a small molecule compound, TLK60404, in preclinical development that inhibits both Aurora kinase and VEGFR kinase. Aurora kinase is a signaling enzyme whose function is required for cancer cell division, while VEGF plays a key role in tumor blood vessel formation, ensuring an adequate supply of nutrients to support tumor growth. These lead compounds prevented tumor growth in preclinical models of human colon cancer and human leukemia by inhibiting both Aurora kinase and VEGFR kinase. A development drug product candidate, TLK60404, has been selected.

The Company, using its TRAP technology has discovered TLK60357, a novel, potent small molecule inhibitor of cell division. TLK60357 inhibits the formation of microtubules that are necessary for cancer cell growth leading to persistent G2/M cancer cell cycle block and subsequent cell death. This compound demonstrates potent broad-spectrum anticancer activity against a number of human cancer cells. This compound also displays oral efficacy in multiple, standard preclinical models of cancer. TLK60596, a potent VG! FR kinase! inhibitor, blocks the formation of new blood vessels in tumors. Oral administration of TLK60596 to animal models of human colon cancer reduced tumor growth.

Best Medical Companies To Own For 2014: Cannabis Science Inc (CBIS)

Cannabis Science, Inc., incorporated on May 4, 2007, is a development-stage company. The Company is engaged in the creation of cannabis-based medicines, both with and without psychoactive properties, to treats disease and the symptoms of disease, as well as for general health maintenance. On February 9, 2012, the Company acquired GGECO University, Inc. (GGECO). On March 21, 2012, the Company acquired Cannabis Consulting Inc. (CCI Group).

The Company is engaged in medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products.

Advisors' Opinion:

• [By John Udovich]

  Although its summer, there has been a steady stream of good news about medical marijuana even though important small cap marijuana stocks�Medical Marijuana Inc (OTCMKTS: MJNA) and Cannabis Science Inc (OTCMKTS: CBIS) have been fairly quietly lately while Growlife Inc (OTCBB: PHOT), a more indirect play on the spread of legalized marijuana, has produced�some news for investors:

• [By John Udovich]

  Small cap marijuana stocks Medical Marijuana Inc (OTCMKTS: MJNA), Cannabis Science Inc (OTCMKTS: CBIS), Medbox Inc (OTCMKTS: MDBX), Growlife Inc (OTCBB: PHOT) and HEMP, Inc (OTCMKTS: HEMP) were all surging by double digits yesterday thanks in part to legal sales of pot beginning in Colorado.

• [By Bryan Murphy]

  The last few days have been nothing less than incredible for stocks like Cannabis Science Inc. (OTCMKTS:CBIS), Medbox Inc. (OTCMKTS:MDBX), Growlife Inc. (OTCBB:PHOT), and Medical Marijuana Inc. (OTCMKTS:MJNA). MJNA shares have jumped 90% since last Friday. PHOT is up 51% for the same timeframe. CBIS has grown 150%, while MDBX is up 112%. The reason? It's largely the legalization of recreational marijuana in Colorado - a law that went into effect as of January 1st. The legalization of medical marijuana in Illinois on the same day didn't hurt either. And truth be told, the event-based rally from the likes of Medbox and Cannabis Science makes basic sense - it's a landmark shift in the way this country views and treats marijuana. On the flipside, before wading any deeper into stocks like Medical Marijuana or Growlife, current and would-be owners might want to take a step back and look at the bigger picture.

• [By James E. Brumley]

  Wow. That didn't take long. It was only two days ago that marijuana stocks like Growlife Inc. (OTCBB:PHOT), Medical Marijuana Inc. (OTCMKTS:MJNA), Cannabis Science Inc. (OTCMKTS:CBIS), Medbox Inc. (OTCMKTS:MDBX), and Hemp, Inc. (OTCMKTS:HEMP) were all the rage, flying high on the heels of a new year... a new year in which marijuana was legalized (for one reason or another) in two more states. HEMP was up as much as 700% in less than three weeks at one point. MDBX gained 300% at the beginning of the year, when recreational marijuana began to be legally sold in Colorado. CBIS jumped 400% off of its December low. MJNA nearly doubled on the advent of new marijuana venues. PHOT soared more than 130% since the end of last year on the legalization of marijuana. It was, truthfully, some of the fastest big money that traders have ever made in the market.

Best Medical Companies To Own For 2014: Prima BioMed Ltd (PRR)

Prima BioMed Ltd is a biotechnology company is engaged in the development and commercialization of medical therapies with a focus on oncology. Its product candidates in development include Cvac, an autologous dendritic cell vaccine for ovarian cancer, monoclonal antibodies for multiple tumour types, and an oral formulation for the human papilloma virus (HPV), vaccine. Its product candidate Cvac is a dendritic cell therapy, for which it is conducting a Phase IIb trial for the treatment of ovarian cancer. Cvac is designed to target the tumour antigen mucin-1, which is expressed at high levels on different tumour types. It also has two preclinical product development programs. In May 2011, Prima BioMed GmbH, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in Germany. In May 2011, Prima BioMed Middle East FZLLC, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in the United Arab Emirates.

What's the best season to invest in the stock market?

There has been a constant argument on whether there is seasonal or monthly patterns that one detect as far as returns on stocks are concerned. The argument almost compels one to consider if there is indeed an ideal month to invest in the markets.

A look at history

The past 3 years� have been extremely different in every possible ways; equity markets are no different. There is no identifiable pattern; clearly, seasonality is not a factor that should determine your entry / exit. Roughly, though, it looks like the street considers March a good month to get in to ensure that one could take home some decent dividend and August is generally a lack luster month for most investors, there are fewer participants due to exhaustion and considering that they are in a month which lacks little action.

 

 

 

 

 

 

 

 

Going back in time, 2001-2008 was again a period with too many developments. Unpredictability continues to be the middle name of the markets and it is evident from the chart below. During this very period, Sensex remained unidirectional. From a meager 3000 points it scaled all the way up to 21000 points. But then this had no correlation to the monthly returns that the markets delivered because there were periods which remained highly volatile. The street�s apparent belief that March / August were good months for taking appropriate positions in the market is defeated when one looks at the below pattern.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Santa Claus rally � Really?!

A Santa Claus rally is a rise in stock prices in the month of December, generally seen over the final week of trading prior to the New Year. The Santa Claus rally is also known as the "December Effect." This a more popular phenomenon in the US, however, there have been brief instances of decent rallies in the Indian Markets as well. The domestic sentiment from this perspective is however, slightly different � the FIIs predominantly take a back seat during this month, due to festivities lined up, and this in turn indicates that there will be flight of capital therefore markets are likely to remain flattish or have a bearish undertone.

January Effect � New Year, New beginnings

The tendency of the stock market to rise between December 31 and the end of the first week in January is termed as the �January effect�. The month of January, it has been seen, has strong significance in predicting the trend of the stock market for the rest of the calendar year.

The occurrence of this is attributed to the fact that there is considerable selling of stock holdings during this period, to claim capital losses that would benefit investors from a  tax perspective. As the calendar year rolls over, investors plough this amount back into the market which in turn pushes the prices up, thereby creating a make believe roller coaster ride. Infact, the very same stocks that have been sold off to realize the losses, will then trade at a discount. Bargain hunters step into such laggards to ride the short term wave. This phenomenon occurs between the last trading day in December of the previous year and the fifth trading day of the New Year in January. This again is a proven thesis with the US markets but domestically it fails does not always hold true.

Clearly, seasonality may not be the way to invest in equities. There are of course sectors like Textiles, Sugar etc., that follow an identifiable pattern backed by clear logic. Despite such nuances, one may still be better off sticking to investing in equities via thorough research and fundamental evaluation. And even better, invest regularly and systematically!

Anil Rego is the CEO and founder of Right Horizons

David Einhorn’s Buys: More Tech and a Return to Yahoo (YHOO)

David Einhorn's new buys include even more tech stocks. Einhorn already owns boatloads of Apple (AAPL) and Microsoft (MSFT). Now he's adding:

· Dell (DELL)

· Yahoo (YHOO)

· Research In Motion (RIMM)

The least loved of these is – of course – RIMM. Einhorn already has a paper loss in that stock. His average cost was $18.88 a share. Today's price is $15.05. That's a 20% loss. And Einhorn only started buying Research In Motion in the last three months of 2011.

But Research In Motion is a pretty small position – 0.81% of Einhorn's total portfolio – compared to one of his other new buys: Dell.

Einhorn already owns $255 million of Dell shares. He paid $15.36 a share. The stock is now at $18.08 a share. That's an 18% gain. And Dell will mean a lot more to Einhorn's performance than Research In Motion. Dell is a 3.9% position for Einhorn. That's almost five times the size of his investment in Research In Motion. So – for now at least – Einhorn's paper gain on Dell will more than make up for his paper loss on RIMM.

Finally, there's Yahoo.

This is a quasi-new buy for Einhorn. He actually bought a 8.5 million shares of Yahoo in the first quarter of 2011 only to sell them for a 2% loss the next quarter. Einhorn was out of Yahoo completely for the third quarter of 2011. And now he's back in with about 3 million shares bought in the fourth quarter of 2011. Einhorn's average price is a wee bit lower this time. His original purchase price – back in first quarter 2011 – was $16.64 a share. He got his Yahoo shares about 6% cheaper this time around. Einhorn paid $15.66 a share for his 3 million shares of Yahoo. The stock is down a smidge from there. Around $15.25 a share.

There have been reports of a breakdown in Yahoo's buyout talks. But that's par for the course in a situation like this where a company is shopping itself around. There will be lots of people leaking stories for lots of different reasons. Don't ! believe everything you read about Yahoo. And certainly don't try to trade on everything you read about Yahoo.

Why is Einhorn buying Yahoo?

Probably on a sum of the parts basis. As everybody knows, Yahoo has some very valuable Asian assets. Unfortunately, they also have a history of mismanaging their U.S. business and losing the trust of their shareholders.

Einhorn owns just 0.24% of Yahoo. Much less than the more than 5.6% owned by Daniel Loeb. Not surprisingly, Loeb is not a fan of Yahoo's board. Loeb had this to say to Yahoo:

"…Recent press reports (indicate) that the Board's current strategic direction is to emphasize the technology aspects of (Yahoo's) business at the expense of advertising and media, which accounts for the vast majority of (Yahoo's) revenues. (We) believe that this approach places (Yahoo's) core revenue generating capability at substantial risk, fails to recognize the tremendous growth opportunity in video, and directly results from a dearth of essential expertise in media and entertainment at the Board level.

…The reluctance of the Board to prioritize shareholder value to date – evidenced by years of deferring and delaying comprehensive strategic initiatives and missing out on myriad accretive transactions and strategic opportunities – will no longer be tolerated or endorsed by investors. Shareholders deserve earnest representation and oversight as (Yahoo) confronts the critical investment and capital allocation decisions it expects to face in the next few months."

Is Einhorn content to ride Daniel Loeb's coattails at Yahoo? Who knows? But we do know that David Einhorn is back in Yahoo stock as of last quarter.

Talk to Geoff About David Einhorn's New Buys geoff@gurufocus.com

What If Your Financial Planner Files for Bankruptcy?

By Hal M. Bundrick

NEW YORK (MainStreet) You trust your financial planner to be honest, knowledgeable and prudent, but financial setbacks can affect anyone even the wisest among us. What if your financial advisor files for bankruptcy? Would that impact your view of his advice?

Periodically, the Certified Financial Planner Board of Standards releases a list of CFP professionals who have declared personal bankruptcy within the last five years. The planners are not subject to disciplinary action, and the CFP Board does not investigate the filings.

"The CFP Board verifies the bankruptcy and notes the bankruptcy filing on the CFP professional's public profile, which is available through the search functions on CFP Board's website," a statement with the disclosure says. "The release of the information does not constitute discipline of these individuals and is provided only for the purpose of providing consumers with adequate information to make an informed decision with regard to engaging a CFP professional to assist with financial decisions." Michael Shaw, managing director for Professional Standards for the CFP Board reiterated the policy in a statement to MainStreet. "CFP Board believes its approach of publicly disclosing the names of CFP professionals who have filed for bankruptcy protection allows consumers to make a fully informed decision when choosing to work with [a] CFP professional," he wrote. But not all financial planners agree with the disclosure standards. In an anonymous comment to an article addressing the matter on the Financial Advisor magazine website, a writer took issue with the policy. "As someone who had been a CFP since 1986, I was stunned when the CFP Board came out with their 'publicize' position on bankruptcy," wrote the commenter under the name FormerCFP. "As a successful professional, I was bled to death by three Florida family-law attorneys in a 4 1/2 year divorce that cost me over $800,000 and forced me to file bankruptcy to keep me from being incarcerated (the laws in New Jersey and other states are equally abusive)."   The writer claimed the personal bankruptcy was not pertinent to his financial practice. "None of this had any impact on my clients or my profession," FormerCFP added. "Shame on you, CFP Board. You've overstepped your authority and the original purpose of the organization by doing this. I'd eliminate any action involving bankruptcies that can be tied to excessive medical bills or divorce proceedings. It's just not relevant to the certification." Some 42 certificants are listed on the CFP website's latest report as having filed for bankruptcy since 2008. But Andrew Wang, a portfolio manager and registered investment adviser in Mendham, N.J., believes the disclosure is not only proper, but necessary. "Because most CFP professionals fall under the jurisdiction of the Financial Industry Regulatory Authority (FINRA) and/or the U.S. Securities and Exchange Commission (SEC), consumers can and should perform a free search for their advisor at BrokerCheck," Wang told MainStreet. "Bankruptcy judgments within the past ten years are reportable events and will be reflected in the advisor's regulatory filings." "In my opinion, consumers deserve to know whether their financial advisor has filed for personal bankruptcy," Wang added. "Any blemish on an advisor's record should be taken seriously, because it has been reported that brokers have been able to successfully expunge black marks from their public records at an alarmingly high rate." Leanne Kramer, a CFP in Olympia, Wash., believes advisor credibility begins with being able to honestly say 'I walk my financial talk.' "In my opinion, a personal bankruptcy does not inspire confidence in the professional who is planning and managing the most important aspect of a client's life," Kramer says. "We are financial planners. We say 'live beneath your means, have emergency savings, have minimal debt, manage your risk, invest wisely.' If we are following our own advice, we should have a plan in place to weather many of the major life events. Isn't that what we tell our clients to do?"

10 Best Warren Buffett Stocks To Buy Right Now

Warren Buffett has been showered with encomiums during his storied investment career.

Now, a new study by researchers at AQR Capital Management and the Copenhagen Business School calls his investment performance the best among all stock and mutual funds that have existed for at least three decades.

Looking at all U.S. stocks from 1926 to 2011 that have been traded for more than 30 years, the study found that between 1976 and 2011, Buffett’s Berkshire Hathaway generated a Sharpe ratio of 0.76, compared with the stock market’s 0.39.

The Sharpe ratio measures risk-adjusted returns.

In a similar vein, Buffett’s Sharpe ratio was higher than the median ratio of 0.37 for the 196 U.S. mutual funds in existence for more than 30 years.

The study’s authors noted that Buffett’s Sharpe ratio was lower than many investors might have imagined. Moreover, adjusting for the market exposure, his information ratio was 0.66.

“This Sharpe ratio reflects high average returns, but also significant risk and periods of losses and significant drawdowns,” they wrote.

10 Best Warren Buffett Stocks To Buy Right Now: Nuveen Tax-Advantaged Total Return Strategy Fund (JTA)

Nuveen Tax-Advantaged Total Return Strategy Fund operates as a diversified and closed-end management investment company. The fund primarily invests in dividend-paying common stocks. It also invests in senior loans, U.S corporate bonds, notes and debentures, convertible debt securities, as well as high yield debt securities. Its portfolio primarily includes investments in oil and gas, diversified telecommunication, services, diversified financial services, tobacco, insurance, aerospace and defense, metals and mining, commercial banks, electric utilities, thrifts and mortagage finance, and paper and forest product sectors. Nuveen Tax-Advantaged Total Return Strategy Fund was organized in 2003 and is based in Chicago, Illinois.

Advisors' Opinion:

• [By Dividends4Life]

  According to a Gabelli Funds report, managed distribution policies offer several advantages, including:1. Lower difference between the fund�� market price and its NAV per share.2. Provides support during periods when the stock market is in a decline.3. Provides a measurable performance target for the investment adviser.Below are several high-yield funds from CEFA that have a managed distribution policy (yields as of December 16):Aberdeen Australia Eqty (IAF)- Distribution Yield: 10.4%- Income Yield: 3.46%Bexil Advisers LLC� (DNI)- Distribution Yield: 11.1%- Income Yield: 3.56%BlackRock En Capital&Inc (CII)- Distribution Yield: 8.78%- Income Yield: 2.34%Cornerstone Strat Value (CLM)- Distribution Yield: 18.77%- Income Yield: 1.83%Cornerstone Total Return (CRF)- Distribution Yield: 19.10%- Income Yield: 0.85%Delaware Inv Div & Inc (DDF)- Distribution Yield: 6.70%- Income Yield: 5.26%Gabelli Equity Trust (GAB)- Distribution Yield: 7.58%- Income Yield: 1.54%Gabelli Utility Trust (GUT)- Distribution Yield: 9.45%- Income Yield: 2.84%MFS Special Value Trust (MFV)- Distribution Yield: 9.60%- Income Yield: 5.73%Nuveen Tx-Adv TR Strat (JTA)- Distribution Yield: 6.70%- Income Yield: 3.12%TCW Strategic Income (TSI)- Distribution Yield: 10.54%- Income Yield: 7.88%Zweig Total Return (ZTR)- Distribution Yield: 7.27%- Income Yield: 1.95%As noted in the Gabelli report, a managed distribution policy may create confusion regarding the true current yield since the reported yield includes the return of capital portion. You can see the disparity above between the income yield and the distribution (reported) yield.If you are looking for a sustainable and growing dividend, you may want to consider some blue-chip dividend stocks such as these with a Free Cash Flow Payout less than 50%, 50+ years of consecutive dividend increases and a 2%+ yield:3M Co. (MMM) is a diversified global company provides enhanced product functionality in electronics, health care, industrial, consumer

10 Best Warren Buffett Stocks To Buy Right Now: Idenix Pharmaceuticals Inc.(IDIX)

Idenix Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery and development of drugs for the treatment of human viral diseases in the United States and Europe. Its primary research and development focus is on the treatment of patients with hepatitis C virus (HCV). The company?s HCV discovery program focuses on various classes of drugs, including nucleoside/nucleotide polymerase inhibitors, protease inhibitors, non-nucleoside polymerase inhibitors, and NS5A inhibitors. It develops products and drug candidates for the treatment of patients with hepatitis B virus (HBV), human immunodeficiency virus (HIV) type-1, and acquired immune deficiency syndrome (AIDS). The company principally has a collaboration agreement with Novartis Pharma AG for the development and commercialization of telbivudine, a drug for the treatment of HBV under the Tyzeka/Sebivo names. Idenix Pharmaceuticals, Inc. was founded in 1998 and is headquartered in Cambridge, Massachusetts.

Advisors' Opinion:

• [By Max Macaluso, Ph.D.]

  Idenix Pharmaceuticals (NASDAQ: IDIX  ) received more bad news today after reporting that the FDA will require more preclinical data before it can proceed with clinical trials for its experimental hepatitis C drug IDX20963. In the following video, health-care analyst Max Macaluso discusses what this news means in the context of Idenix's previous drug development problems.�

10 Best Cheap Stocks To Own Right Now: General American Investors Inc. (GAM)

General American Investors Company, Inc. is a self management investment trust. The firm invests in the public equity markets across the globe. It employs a fundamental analysis with a bottom-up stock picking approach. General American Investors Company, Inc. was founded in 1927 and is based in New York, New York.

10 Best Warren Buffett Stocks To Buy Right Now: Armada Data Corp (ARD.V)

Armada Data Corporation, an information and marketing services company, provides data, as well as information technology, e-commerce, and online marketing services to corporate and retail customers. It operates in six divisions: Insurance Services, Retail Services, Dealer Services, Auto Marketing Group Services, Internet Technology, and Advertising/Marketing Services. The Insurance Services division sells total-loss replacement vehicle reports to Canadian insurance companies. The Retail Services division sells new car pricing data to consumers primarily through its Website CarCostCanada.com, as well as resells this new car pricing data to qualified third party vendors. The Dealer Services division sells new vehicle leads derived from membership sales from Car-Cost-Canada. The Internet Technology division offers Website hosting, Website development, email, online marketing, search engine optimization, cloud, technical support, and network support services. The Auto Marketin g Group Services division is involved in the administration and maintenance of certain Websites of its business partners. The Advertising/Marketing Services division engages in the sale of online third party Website advertising and consulting, as well as other new car or car business related marketing activities. The company, through its subsidiary, Big & Easy Bottle Brewing Company Inc., also develops and markets a microbrewery in a bottle solution that allows consumers to produce premium beer. Armada Data Corporation was founded in 1999 and is headquartered in Mississauga, Canada.

10 Best Warren Buffett Stocks To Buy Right Now: Starbucks Corporation(SBUX)

Starbucks Corporation purchases and roasts whole bean coffees. It operates approximately 16,858 stores, including 8,833 company-operated stores and 8,025 licensed stores. The company offers approximately 30 blends and single-origin premium arabica coffees. It also provides handcrafted beverages, such as fresh-brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, Vivanno smoothies, and Tazo teas; and merchandise products, including home espresso machines, coffee brewers and grinders, coffee mugs and accessories, packaged goods, music, books, and gift items. In addition, it offers fresh food items, which comprise baked pastries, sandwiches, salads, oatmeal, yogurt parfaits, and fruit cups. Further, it also provides VIA ready brew coffee, bottled frappuccino beverages, discoveries chilled cup coffee, doubleshot espresso drinks, iced coffee, whole bean coffee, and ice creams. The company?s brand portfolio includes Tazo tea, Ethos water, Seatt le?s Best Coffee, and Torrefazione Italia Coffee. Starbucks Corporation sells its products in approximately 50 countries worldwide. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

Advisors' Opinion:

• [By Kevin Chen]

  After 15 years operating in the Thailand market, Starbucks� (NASDAQ: SBUX  ) is set to double its store count in the country over the next five years.

• [By Charley Blaine]

  Apple (NASDAQ: AAPL) reports fiscal-fourth-quarter results after Monday's close. Starbucks (NASDAQ: SBUX) reports after Wednesday's close. Oil giants Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) report on Thursday and Friday, respectively.

• [By Rick Munarriz]

  The shares have more than tripled since bottoming out last summer. Worrywarts at the time feared that Starbucks (NASDAQ: SBUX  ) would eat into the company's dominant market share with its espresso-centric coffee maker. There were also fears that last September's expiration of K-Cup patents would translate into the end of growth at Green Mountain.

10 Best Warren Buffett Stocks To Buy Right Now: Pathfinder Bancorp Inc.(PBHC)

Pathfinder Bancorp, Inc. operates as the holding company for Pathfinder Bank that offers banking products and services to individuals, families, and businesses primarily in Oswego and parts of Onondaga counties of New York. It offers various deposit products, including demand deposits, NOW accounts, savings accounts, time deposits, passbook savings, money management and money market deposit accounts, and interest-bearing and noninterest-bearing checking accounts. The company also originates commercial and residential real estate loans; commercial loans, including loans to municipalities; and consumer loans, such as second mortgage loans, home equity lines of credit, and direct installment and revolving credit loans. It operates through seven full-service offices. The company was founded in 1859 and is headquartered in Oswego, New York. Pathfinder Bancorp, Inc. is a subsidiary of Pathfinder Bancorp, M.H.C.

10 Best Warren Buffett Stocks To Buy Right Now: Alexandria Minerals Corporation (AZX.V)

Alexandria Minerals Corporation, a development stage company, engages in the acquisition, exploration, and development of mineral resource properties in Canada. It explores for copper, gold, silver, and zinc ore properties. The company holds interests in 24 mineral properties in 3 areas in the Abitibi Belt in northern Quebec and Ontario. It primarily focuses on exploring the Cadillac Break property group consisting of 21 individual properties covering 12,526 hectares on 675 claims located in Val d�Or, Quebec. The company was founded in 2002 and is headquartered in Toronto, Canada.

10 Best Warren Buffett Stocks To Buy Right Now: Patient Home Monitoring Corp (PHM.V)

Patient Home Monitoring Corp. provides home-based monitoring services and supplies for cardiology patients in the United States. The company offers its products and services to patients that take prescription blood thinners, such as Coumadin. Its in-home testing services enable to monitor PT/INR from home. The company is based in San Francisco, California.

10 Best Warren Buffett Stocks To Buy Right Now: United Overseas Australia Ltd (EH5.SI)

United Overseas Australia Limited engages in the construction, development, and resale of residential and commercial land and buildings primarily in Australia and Malaysia. It is also involved in the investment of rental properties; and investment of UOA real estate investment trust. The company, formerly known as United Overseas Securities Limited, was founded in 1987 and is based in Osborne Park, Australia.

10 Best Warren Buffett Stocks To Buy Right Now: Great Portland Est(GPOR.L)

Great Portland Estates plc, through its subsidiaries, operates as a real estate investment trust (REIT). It develops freehold and leasehold, residential, retail, and office properties in London. The company has elected to be treated as a REIT under the Internal Revenue Code and would not be subject to federal income tax, provided it distributes approximately 90% of its taxable income to its shareholders. Great Portland Estates plc is based in London, the United Kingdom.

2 Tech Stocks Spiking on Big Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

With that in mind, let's take a look at several stocks rising on unusual volume today.

Power Integrations

Power Integrations (POWI) designs, develops, manufactures and markets proprietary, high-voltage, analog integrated circuits for use in AC-DC and DC-DC power conversion in the consumer, communications, computer and industrial electronics markets. This stock closed up 5.9% at $55.15 in Wednesday's trading session.

Wednesday's Volume: 571,000

Three-Month Average Volume: 218,547

Volume % Change: 173%

From a technical perspective, POWI ripped higher here right above some near-term support at $50.68 with above-average volume. This move also pushed shares of POWI into breakout and new 52-week-high territory, since the stock took out some near-term overhead resistance at $55.38. At last check, POWI closed a bit off its intraday high and volume was well above its three-month average action of 218,547 shares.

Traders should now look for long-biased trades in POWI as long as it's trending above Wednesday's low of $52.60 and then once it sustains a move or close above Wednesday's high of $55.59 with volume that this near or above 218,547 shares. If we see that move soon, then POWI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $60 to $62.

Take-Two Interactive Software

Take-Two Interactive Software (TTWO) is a developer, marketer and publisher of interactive entertainment for consumers around the globe. This stock closed up 3.3% at $17.56 in Wednesday's trading session.

Wednesday's Volume: 4.70 million

Three-Month Average Volume: 2.08 million

Volume % Change: 147%

From a technical perspective, TTWO spiked higher here and broke out above some past overhead resistance levels at $17.35 to $17.54 with above-average volume. Shares of TTWO also flirted with some more resistance at $17.58 and the stock tagged new 52-week highs. At last check, shares of TTWO closed a bit off its intraday high of $17.84 and volume was well above its three-month average action of 2.08 million shares.

Traders should now look for long-biased trades in TTWO as long as it's trending above some support at $16.50 and then once it sustains a move or close above Wednesday's high at $17.84 with volume that hits near or above 2.08 million shares. If we get that move soon, then TTWO will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $20 to $25.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

Mueller Industries Beats Analyst Estimates on EPS

Mueller Industries (NYSE: MLI  ) reported earnings on July 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 29 (Q2), Mueller Industries met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.

Margins expanded across the board.

Revenue details
Mueller Industries logged revenue of $582.3 million. The one analyst polled by S&P Capital IQ anticipated revenue of $579.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.90. The three earnings estimates compiled by S&P Capital IQ averaged $0.85 per share. Non-GAAP EPS of $0.90 for Q2 were 91% higher than the prior-year quarter's $0.47 per share. GAAP EPS of $3.23 for Q2 were much higher than the prior-year quarter's $0.47 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 13.9%, 190 basis points better than the prior-year quarter. Operating margin was 6.5%, 150 basis points better than the prior-year quarter. Net margin was 15.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $509.7 million. On the bottom line, the average EPS estimate is $0.73.

Next year's average estimate for revenue is $2.31 billion. The average EPS estimate is $3.32.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 155 members out of 162 rating the stock outperform, and seven members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Mueller Industries a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mueller Industries is buy, with an average price target of $61.00.

Looking for alternatives to Mueller Industries? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

Add Mueller Industries to My Watchlist.

Top 5 Value Companies For 2014

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Silicon Motion Technology (NASDAQ: SIMO  ) fell as much as 14% today after the company released earnings.

So what: Net sales fell 19% from the fourth quarter to $57.4 million, coming in just ahead of estimates. The real downside was on the bottom line, where earnings per share dropped more than 50%, to $0.17, $0.05 short of estimates.�

Now what: The decline in revenue was driven by mobile storage and mobile communications products, two cores of the company. The stock is trading at just five times forward earnings estimates, but the declining revenue and earnings has a value trap written all over it. I'm staying away from this stock today, and need to see operational improvement to be a buyer.

Interested in more info on Silicon Motion Technology? Add it to your watchlist by clicking here.

Top 5 Value Companies For 2014: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:

• [By Tyler Crowe and Aimee Duffy]

  About 1% of all drilling operations are powered by natural gas. By shifting all drilling operations over to natural gas, the industry could save as much as $1.6 billion a year. The idea has such appeal that both Haliburton (NYSE: HAL  ) and Schlumberger (NYSE: SLB  ) have said that they would be willing to test sites with Apache for free. In this video, Fool.com contributor Tyler Crowe talks about how the industry could convert to natural-gas-powered operations, and highlights companies to look out for that could benefit from this movement.

• [By Taylor Muckerman and Joel South]

  Gulf of Mexico delivering boatloads of profit
  Already, several companies have spoken glowingly about activity levels in the Gulf of Mexico. Not just drillers like Noble Corp (NYSE: NE  ) �but also equipment and service companies like Halliburton (NYSE: HAL  ) and Schlumberger (NYSE: SLB  ) . What we are seeing here is a steady increase in both dayrates and utilization rates, which are both�very�positive signs for drillship operators.

• [By Isac Simon]

  Is the stock looking cheap?
  To me, Halliburton currently looks cheaper that its bigger cousin Schlumberger (NYSE: SLB  ) . While Halliburton is trading at 21 times its earnings, and Schlumberger's trading at only 18 times earnings, the reason I'm not too interested in the P/E multiple is that Halliburton's bottom line doesn't reveal its actual profits. Since April 2010, the company has been making provisions for its part in the Macondo oil spill disaster. This has distorted Halliburton's actual earnings considerably.

• [By P.I.A.]

  This Libra story only involves one location out of several around the globe that are favorable to offshore drillers. Some say the industry itself is poised to outperform. The Market Vectors Oil Services ETF (OIH) could make sense to investors. The fund tracks 25 international companies, with Schlumberger Ltd (SLB) comprising 20.6% of its holdings, compared to 4.3% SDRL. Even with the heavy weighting toward SLB, diversification provides safety.

Top 5 Value Companies For 2014: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:

• [By ANUP SINGH]

  Dollar Tree (NASDAQ: DLTR  ) is among the most successful single-price-point retailers in the U.S. It operates more than 4,842 stores across 48 states in the U.S. and five Provinces in Canada. The chart below shows that the company has been performing consistently well over the past five years.

5 Best Undervalued Stocks To Invest In 2014: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:

• [By Ben Levisohn]

  Shares of Herbalife have gained 0.9% to $79.51 this morning in pre-open trading. Its shares have gained 139% this year, a nice gain, but lagging Nu Skin Enterprises 271% rise. Avon Products�(AVP), another multi-level marketer, has gained 21% so far this year, while Tupperware Brands�(TUP) has risen 49%.

Top 5 Value Companies For 2014: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:

• [By Matt Thalman]

  Despite my colleague Dan Caplinger's prediction that Caterpillar (NYSE: CAT  ) will announce an increase to its dividend on Wednesday, shares of the Cat are down 0.9% today. The company is also one of the Dow's most hated stocks: Short interest in the company is at 4%, and Sean Williams explained over the weekend why investors don't much care for the stock right now, knocking its price down 6.2% year to date to make it the worst-performing component on the blue-chip index. Sean noted that weak coal and precious-metal prices have really hurt the heavy-equipment manufacturer, but Sean feels Caterpillar is a good bet for the long-term investor, and I must agree with him.�

• [By Chris Hill]

  Molex (NASDAQ: MOLX  ) is up big after Koch Industries agreed to buy the company for $7.2 billion in cash. Yum! Brands' (NYSE: YUM  ) same-store sales in China fall 10% in August. Caterpillar (NYSE: CAT  ) shares are up on news that China's exports grew more than 7% in August. And Middleby (NASDAQ: MIDD  ) closes in on a new all-time high. In this segment, the guys discuss four stocks making big moves.

• [By Jeremy Bowman]

  Two industrial powerhouses on the Dow delivered earnings today. First, Caterpillar (NYSE: CAT  ) shares finished down 2.4% after missing estimates as many had expected. The slowdown in Chinese construction has hurt demand for materials and thus mining equipment, a key component of Caterpillar's business. The world's largest maker of earth-moving equipment said profits fell 43% as EPS came in at $1.45, down from $2.54 a year ago, and worse than estimates at $1.69. Revenue dropped 15.8% to $14.6 billion, below expectations of $15.1 billion. Management promised cost-cutting to cope with the decrease in demand, and cut its full-year EPS outlook from $7 to $6.50.

Most Fed Officials Backed Tapering of QE

While an improving U.S. job market propelled most Federal Reserve officials to vote last month for the Fed to scale back its bond-buying program, the officials also saw diminishing economic benefits from the central bank’s bond buying program and voiced concern about risks to financial stability, according to the minutes from the Federal Open Market Committee’s December meeting, released Wednesday.

“Most members agreed that the cumulative improvement in labor market conditions and the likelihood that the improvement would be sustained indicated that the committee could appropriately begin to slow the pace of its asset purchases at this meeting,” according to minutes of the Dec. 17-18 meeting.

The minutes went on to say that “a majority of participants judged that the marginal efficacy of purchases was likely declining.” Participants also were “concerned about the marginal cost of additional asset purchases arising from risks to financial stability” citing the potential for “excessive risk-taking in the financial sector.”

The Federal Open Market Committee announced after its December meeting that it would start reining in its quantitative easing program by instituting a “modest” $10 billion reduction in its monthly bond-buying program to $75 billion per month.

Beginning in January, the FOMC said, it will add to its holdings of agency mortgage-backed securities at a pace of $35 billion per month rather than $40 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $40 billion per month rather than $45 billion per month.

At his last press conference before he steps down as Federal Reserve Board chairman, Ben Bernanke said after the December meeting that further tapering will “be data dependent.” However, he said he anticipated that the Fed would “probably do a measured reduction” at each meeting in 2014.

“If the economy slows or we are disappointed we could skip a meeting or two, but if things pick up we could go a bit faster,” he said. “I anticipate similar moderate steps through most of 2014.”

Janet Yellen, who was confirmed by the Senate to be the next Fed chief, officially starts on Feb. 1, when Bernanke’s term ends.

The FOMC’s first meeting of 2014 will be held Jan. 28 and 29, but a summary of economic projections and a press conference by Yellen won’t come until the meeting on March 19.

Bernanke said in a speech Friday that the encouraging news for the Fed in the New Year is that the “headwinds” the Fed faced during his term “may now be abating.”

Near-term fiscal policy at the federal level remains restrictive, Bernanke said, “but the degree of restraint on economic growth seems likely to lessen somewhat in 2014 and even more so in 2015; meanwhile, the budgetary situations of state and local governments have improved, reducing the need for further sharp cuts. The aftereffects of the housing bust also appear to have waned.”

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Check out House Committee Promises ‘Vigorous’ Oversight of Yellen’s Fed on ThinkAdvisor.