Spain’s Public Debt Soars to New Highs Smothering Any Optimism

A small ripple of optimism over the gradually improving state of the Spanish economy that filtered through the markets a few weeks ago is now once again shaky on the latest figures from the beleaguered country, which show its public debt burden has soared well beyond governmental forecasts.

The Bank of Spain recently announced that the nation’s public debt had reached 92% of GDP for the end of June, a noticeable increase over the 90% tallied up in March, and numerous parties, the International Monetary Fund (IMF) included, believe that Spain’s public debt-to-GDP is likely to rise even further, most likely topping out well above the 100% mark.

That’s bad news for a country where economic recovery is still but a whisper and where a host of problems, not least severe unemployment, continue to make everyday life extremely tough for scores of people. But nevertheless, Spain’s public debt load is still lower than that of other Southern European countries that continue to suffer the pains of the Eurozone crisis, said Brian May, European economist at Capital Economics in London.

“One hundred percent is not a nice number, but given that Italy’s public debt has been over 100% for a number of years now, and Greece, too, is well above that level, Spain’s numbers aren’t too worrying by comparison,” May said.

Being able to manage that debt burden, though, even if it climbs to a higher level will depend on Spain’s resolve and ability to address the deep-rooted structural issues that continue to hold back economic growth.  

In all fairness, the country has been tackling some of those deeper economic issues and because of that, there are definitely signs that the Spanish recession is easing, May said.  

The European Central Bank’s (ECB) Outright Monetary Transactions (OMT) program has also brought Spanish government bond yields to more manageable levels and the worst of the fiscal squeeze appears to have passed, May said. The labor market downturn has also eased and Spanish exports, he said, are expanding as the country’s business base improves, thereby lending support to both the economy and the banking sector.  And finally, encouraging labor market data suggests also that there have been improvements in that area.

Spanish banks have also succeeded in reducing their ECB borrowings. In August, borrowings totaled around E250 billion, a net decrease from the E400 billion borrowed a year ago.

But even though Spain may be in a better position than its other European periphery counterparts, and economists are more optimistic about Spain than they are about the rest, the country still faces some very serious challenges as the worst of the crisis continues to bore its way through the economy, May said.

The high levels of household debt in Spain are a real concern and combined with household savings rates that are now at extremely low levels as a result of the recession will mean that household spending, which is already low, will fall even further.

Credit is also still very tight in Spain, which means that businesses are going to have to deleverage further and that will make them reluctant to invest, according to May. “Although Spanish banks may have better access now to wholesale markets for their funding needs, and are borrowing there rather than using ECB money, it could be that the gradual improvements we have seen in the indebtedness of the banks are actually due to the banks not using the emergency money that they could have used. So rather than extending credit, they may simply be giving unused money back to the ECB,” he said.

Hot Bank Stocks To Invest In 2014

Overall, Spain’s debt dynamics are in a healthier position than Greece’s, and whereas Greece will need help for years and years to come, Spain could potentially work its way out of the mess if interest rates don’t rise and the Spanish economy continues to stage a decent, albeit slow, recovery going forward.

But even though Spain may be able to solve its problems without financial assistance from outside, such a high level of public debt is not a good thing, and May still has a more pessimistic view on the Spanish situation, believing that there’s a real risk of deflation, which will make it harder for both the public and private sectors to reduce their onerous debt burdens.

Although a continued rise in public debt isn’t going to set off another Eurozone panic, or prompt the Spanish government to default on its debt, Spain, the country may well end up having to seek financial assistance from the Eurozone to, May said, “to ensure that its public debt return to a stable footing.”

 

Should You Invest in Video Games?

GameStop (NYSE: GME  ) is about to enter an interesting and telling phase. What you see from GameStop over the next year will likely indicate the company's long-term potential. This is solely based on an upcoming event that hasn't taken place in six years. 

The big event
Video game platforms are usually replaced after four-to-five years, but it has been six years since the latest generation of gaming platforms has been renewed. And as you might already know, Sony's  (NYSE: SNE  ) PlayStation 4 and Microsoft's (NASDAQ: MSFT  ) Xbox One are both due for release this holiday season. Information about these gaming consoles is important, because it has the potential to impact GameStop.

PlayStation 4 is due out on November 14, 2013, and it will cost $399. Sony states that the gaming console was designed with a frictionless and seamless gaming experience in mind. PlayStation 4 games include Deep Down, Destiny, Diablo III, Driveclub, The Witcher 3: Wild Hunt, Final Fantasy, Infamus: Second Son, Killzone: Shadow Fall, Knack, and Watch Dogs. 

Potential Sony investors should know that the company expects initial PlayStation 4 orders to be 40% higher than initial PlayStation 3 orders were in the mid-2000's. Sony also expects PlayStation 4 to be profitable much faster than it took PlayStation 3 (four years), thanks to a more attractive price for the PlayStation 4 -- $399 vs. $599. Based on 1 million pre-orders in August, Sony looks to have a good head start, as it expects to ship 5 million units between launch and March 31, 2014.

The Xbox One is more expensive at $499, but it comes with many features since Microsoft is aiming for the living room experience. On the Xbox One, you will be able to watch TV and movies, use Skype, and of course, play games. The expected release date for Xbox One is rumored to be November 29. Xbox One games include Assassin's Creed 4, Battlefield 4, Call of Duty: Ghosts, Dead Rising 3, FIFA Soccer 14, Forza Motosport 5, Just Dance 2014, Zoo Tycoon, and more. 

Microsoft's Xbox Live revenue jumped 20% in the fourth quarter year over year -- a positive sign for the brand's future digital potential. Also in the fourth quarter, Microsoft "only" shipped 1 million Xbox 360 units versus 1.1 million in the year-ago quarter. But this is a potential positive, because it indicates that gamers might be preparing for the next generation -- Xbox One.

The release of these gaming consoles and games has the potential to act as a big upside catalyst for GameStop simply because it sells games for these platforms.

There has been much debate over whether or not game sales will surprise to the upside, disappoint, or be inline with expectations. While no one knows the answer to this question, two factors are likely to play tug of war with each other.

On one hand, since Sony PlayStation 3, Microsoft Xbox 360, and Nintendo Wii were introduced between 2005 and 2007, there's likely to be a great deal of pent-up demand. On the other hand, the consumer is now more value-based than in 2005-2007, and gaming consoles are expensive.

Regardless of whether gaming consoles -- and then game sales for GameStop -- surprise, disappoint, or are inline with expectations, GameStop's revenue is highly likely to increase. But game sales don't lead to higher gross margins. This trend takes place when hardware sales fade and gamers begin to purchase complementary software and accessories. Therefore, you should expect to see higher sales and lower margins followed by lower sales and higher margins.

Digital trends
GameStop feels as though it's well positioned for continuous growth in the digital market by selling network point cars, prepaid digital cards, and online time-cards for Xbox Live, PlayStation, and Nintendo. Based on GameStop's strategic positioning in the market, it expects digital sales to increase in the second half of FY 2013.

More strategic moves
In FY 2011, GameStop began selling and accepting trades for mobile devices and accessories. This option is now available in all domestic stores, as well as most international stores. This was a good move at the time, since it brought more people into the store. As you can see in the five-year chart below, revenue peaked in 2011:

GameStop revenue trailing-12 months data by YCharts

This revenue decline has more to do with a hesitant consumer than management. Management has much more control over the bottom line. Therefore, it's important to consider the trend below:

GameStop EPS diluted trailing-12 months data by YCharts

Some key metrics also indicate whether or not management is doing an efficient job or not. A net margin of (3.5%) and an ROE of (12%) are far from impressive, but at the same time, the company's debt-to-equity ratio of 0.02 is a big positive, as is a 2.2% yield. 

Geographic exposure
GameStop has exposure in the United States, Australia, Canada, and Europe, with 6,505 stores in total. If near-future sales surprise to the upside, then it's possible that GameStop will look to increase its international exposure. But even if that's not what transpires, GameStop knows the digital market is ever-growing, and the company will aim for continued growth in this area. GameStop also knows that there's a low barrier to entry in the digital market, which makes strategic positioning imperative.

The bottom line
GameStop has a lot of upside potential, but it's also a very risky investment, perhaps too risky. Despite future potential, revenue and earnings-per-share trends are concerning, net margin and ROE are negative, the company must contend with a low barrier to entry in the digital market (could lead to increased competition at any time), and it relies too heavily on consumer discretionary income. 

Dig deeper into technology for profitable investments 
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Best Penny Stocks To Watch For 2014

AP Photo/Burger King Companies can make brilliant moves, but there are also times when things don't work out quite as planned. From a Japanese gaming pioneer finally cutting prices on its poor selling devices to a burger chain introducing a burger for a buck, here's a rundown of the week's smartest moves and biggest blunders in the business world. Walmart (WMT) -- Winner The country's biggest retailer was singled out in this column last week for the way that it's bringing back its layaway plan for the holiday shopping season. And this week it earns another shout out. In a memo to its associates this week, Walmart revealed that its health insurance policies for 2014 will cover "any spouse or domestic partner" regardless of gender. Walmart knows that this is still a polarizing topic. However, by opening up health coverage to domestic partners -- gay or straight -- Walmart is likely to score points with many who have been critical of the company's practices in the past. Sure, we can lament that just half of Walmart's 1.3 million associates have elected health coverage through the company. No one's saying the giant discounter is perfect. However, this move will help improve its image with a lot of its detractors. Burger King (BKW) -- Loser Burger chains are bucking the trend these days, beefing up their dollar menus at a time when the economy is showing signs of life. There's a reason for that. Customers are moving up to higher quality "fast casual" establishments that offer better food at slightly higher price points with the convenience of counter service. Burger King's latest push was announced this week. It will add a French fry-topped hamburger -- for a buck -- to its menu in September. There's nothing inherently wrong with the new sandwich. Who hasn't placed fries inside their burger from time to time? However, this seems like a bad play for franchisees: They may see fry sales slip at the hands of penny-pinching diners believing that they can knock off a sandwich and a side for just a dollar. Nintendo (NTDOY) -- Winner What do you do when your video game console isn't selling and rivals are ready to hit the market with better systems in November? If you're Nintendo, you give the Wii U one final shot by lowering prices and bundling it with a popular release. The Japanese gaming pioneer is slashing the price of its Wii U deluxe console by $50 to $299. That will make it $100 cheaper than the PS4 and $200 cheaper than the Xbox One when they hit stores in less than three months. It will also create a special bundle with a new game from its iconic Zelda franchise. Nintendo isn't stopping there. It's also rolling out a cheaper alternative to its 3DS portable system. The new 2DS will feature a different layout and a price tag of just $129. Nintendo just may have saved its holiday shopping season. LDK Solar (LDK) -- Loser Solar energy has been a tough sector to invest in since the frenzied hype began to fade a couple of years ago. Drawing energy from the sun may seem great in theory, but the products that make it possible aren't cheap. LDK Solar and its peers rely on governments providing subsidies for new installations, but that hasn't been enough these days. LDK had a particularly bad week. It kicked things off by posting another quarterly deficit with revenue falling by roughly half. Then it announced that it would be missing a debt payment. The market doesn't like deadbeats. Zale (ZLC) -- Winner Upscale jeweler Zale saw its shares shoot higher after posting better than expected results. Revenue moved higher, fueled by a 5.6 percent increase in comparable store sales. Yes, it posted a quarterly loss, but even that was better than Wall Street was expecting. Zale's strong performance came during the same week that rival Tiffany (TIF) posted uninspiring quarterly results and was downgraded by Citigroup. Tiffany has historically been the one to get the last laugh on Zale, but not this time.

Best Penny Stocks To Watch For 2014: Natural Alternatives International Inc.(NAII)

Natural Alternatives International, Inc. provides private label contract manufacturing services to companies that market and distribute vitamins, minerals, herbs, and other nutritional supplements, as well as other health care products, to consumers in the United States and internationally. It offers strategic partnering services, including customized product formulation, clinical studies, manufacturing, marketing support, international regulatory and label law compliance, international product registration, packaging in multiple formats, and labeling design. The company also develops, manufactures, and markets its own branded products under the Pathway to Healing product line through print media and the Internet distribution channels. It manufactures products in various forms, including capsules, tablets, chewable wafers, and powders. The company was founded in 1980 and is headquartered in San Marcos, California.

Best Penny Stocks To Watch For 2014: Brocade Communications Systems Inc.(BRCD)

Brocade Communications Systems, Inc. supplies networking equipment comprising end-to-end Internet protocol based Ethernet and storage area networking solutions. Its Data Storage segment provides infrastructure products and solutions, including directors, switches, routers, fabric-based software applications, distance/extension products, management applications, and utilities to centralize data management; and host bus adapters, converged network adapters, mezzanine cards, and switch modules for bladed servers. The company?s Ethernet Products segment offers Open Systems Interconnection Reference Model (OSI) Layer 2-3 switches and routers, which enable the use of bandwidth-intensive network business applications and digital entertainment on local area networks and wide area networks; and OSI Layer 4?7 switches that allow enterprises and service providers to build network infrastructures to direct the flow of traffic, and file area network products and associated management s olutions. The company?s Global Services segment provides break/fix maintenance, extended warranty, installation, consulting, network management, and related software maintenance and support services; consulting and support services that assist customers in designing, implementing, deploying, and managing networking solutions; and post-contract customer support and extended warranties. It serves various businesses and organizations, which include global enterprises and service providers, such as telecommunication firms, cable operators, and mobile carriers. The company has a strategic partnership with LG-Ericsson. It offers its products and services to end-user customers directly, and through various distribution partners comprising original equipment manufacturers, distributors, systems integrators, and value-added resellers in the United States, western Europe, Japan, and the greater Asia Pacific region. The company was founded in 1995 and is headquartered in San Jose, Cali fornia.

Advisors' Opinion:

• [By Lauren Pollock]

  Brocade Communications Systems Inc.(BRCD) raised its stock buyback program to $1 billion from $308 million, as the company cited confidence in generating greater cash flow as well as its long-term business prospects. Shares rose 3.8% premarket to $8.49.

5 Best Energy Stocks To Buy Right Now: IRIS International Inc.(IRIS)

IRIS International, Inc. manufactures in vitro diagnostic (IVD) products for urinalysis and body fluids. The company?s IVD segment offers iQ analyzer, an automated urine microscopy and body fluids analyzer; iQ Body Fluids Module; Optional iWare Software; iChem VELOCITY and iRICELL, an automated urine chemistry analyzer; 3GEMS Urinalysis and Body Fluids; and 3GEMS Hematology, a blood count analyzer. This segment also provides consumables for microscopy systems, test strips, calibrators, controls, and urine chemistry analyzers. Its Sample Processing segment offers benchtop centrifuges, small instruments, and supplies used for applications in coagulation, cytology, hematology, urinalysis, and DNA processing. This segment provides Express centrifuge line for clinical diagnostic market; ThermoBrite, a DNA workstation for FISH procedures; Cytofuge 2, a centrifuge for layer cell preparation; Cytofuge 12, a 12 placement centrifuge used for thin layer cell preparation; IDEXX Drive and IDEXX whole blood separator for use in IDEXX chemistry analyzers; and OvaTube, an ova and parasite testing for veterinarian market. The company?s Personalized Medicine segment offers oncology and molecular diagnostics services. This segment?s products include Arista Molecular Tests for the diagnosis and prognostication of pathologic entities; Flow cytometry, a cell analysis platform; FISH for the detection of DNA on chromosomes; NADiA ProsVue used in prognostication of patients; NADiA HIV to monitor HIV viral load; and NADiA CECs for the detection of circulating epithelial cells. It serves medical institutions, commercial laboratories, clinics, doctors? offices, veterinary laboratories, and research facilities. IRIS International sells its products through a direct sales and service force in the United States, as well as through distributors internationally. The company was founded in 1979 and is headquartered in Chatsworth, California.

Best Penny Stocks To Watch For 2014: China Ceramics Co. Ltd.(CCCL)

China Ceramics Co., Ltd. engages in the manufacture and sale of ceramic tiles used for exterior siding, interior flooring, and design in residential and commercial buildings primarily in the People's Republic of China. It offers porcelain tiles, glazed tiles, glazed porcelain tiles, rustic tiles, and ultra-thin tiles under the Hengda, Hengdeli, TOERTO, and WULIQIAO brand names. The company primarily sells its products through a distributor network, as well as directly to property developers. China Ceramics Co., Ltd. is based in Jinjiang City, the People's Republic of China.

Best Penny Stocks To Watch For 2014: Rocky Mountain Chocolate Factory Inc.(RMCF)

Rocky Mountain Chocolate Factory, Inc. operates as a franchiser, confectionery manufacturer, and retail operator. It offers a range of chocolate candies and confectionery products. The company?s products include clusters, caramels, creams, mints, and truffles. As of March 31, 2010 it operated 11 owned, 29 franchised/licensed owned, and 305 franchised Rocky Mountain Chocolate Factory stores in 36 states in the United States, Canada, and the United Arab Emirates. The company was founded in 1981 and is headquartered in Durango, Colorado.

Best Penny Stocks To Watch For 2014: Black Diamond Inc.(BDE)

Black Diamond, Inc., together with its subsidiaries, develops, manufactures, and distributes outdoor recreation equipment and active lifestyle products in the United States and internationally. It provides climbing products, including belay/rappel devices, bouldering products, carabiners and quickdraws, chalk, chalk bags, climbing packs, crampons, crash pads, dogbones and runners, harnesses, ice axes and piolets, ice and rock protection devices, and various other climbing accessories; and skiing products comprising backpacks, winter packs for skiing and snowboarding, bindings, boots, poles, skis, skins, snow gloves, snow packs, and snow safety devices. The company also offers mountaineering line products, such as backpacks for alpine expeditions, backcountry excursions, overnight trips, and day hikes; and bivy sacks, rain sacks, gaiters, gloves, headlamps, lights, tents, trekking poles, and other hiking and mountaineering accessories. In addition, it provides hydration pac ks for trail running and cycling; travel and lifestyle products, which include duffle bags, messenger bags, and small bags and pouches carry electronics and other accessories; and various apparel and accessory products. The company sells its products to mountain climbers, winter outdoor enthusiasts, backpackers and campers, cyclists, top endurance trail runners, and outdoor-inspired consumers under the Black Diamond and Gregory brands through sporting goods and outdoor recreation stores, retail stores, and consumer catalogs, as well as through blackdiamondequipment.com. Black Diamond, Inc. is headquartered in Salt Lake City, Utah.

Best Penny Stocks To Watch For 2014: Luna Innovations Incorporated(LUNA)

Luna Innovations Incorporated engages in the research, development, and commercialization of technologies in the areas of sensing and instrumentation products, and health care products primarily in the United States. The company?s Product and Licensing segment offers test and measurement products to monitor the integrity of fiber optic network and sub-assemblies. This segment provides Optical Vector Analyzer platform, a device for single-measurement, all-parameter analysis of fiber optic components and assemblies up to 150 meters in length; Optical Backscatter Reflectometer, a sensitive diagnostic device, for data and telecommunications companies, and service providers who maintain their own fiber optic networks; and Phoenix laser, a MEMs-based external cavity laser, that offers low noise and precise tuning capability over the C-band. It also offers distributed sensing systems, which comprise multiple sensors whose input is integrated through a fiber optic network and soft ware to detect distributed strain, shape, and temperature; and tunable lasers. In addition, this segment provides health care products, including medical devices for minimally invasive diagnostics, surgery, and therapy; non-invasive monitoring and diagnosis medical devices consisting of emboli detection and classification QUANTIFIER, a non-invasive medical device, that uses quantitative ultrasound technology to count emboli in ex-vivo blood circuit; and nanomaterial-based medical products comprising Trimetasphere nanomaterials. The company?s Technology Development segment provides contract research services to universities, government entities, and corporations. Luna Innovations Incorporated offers its services to energy, telecommunications, life sciences, and defense industries .The company was incorporated in 1990 and is headquartered in Roanoke, Virginia.

Best Penny Stocks To Watch For 2014: Sparton Corporation(SPA)

Sparton Corporation, together with its subsidiaries, offers electronic manufacturing services primarily for medical device, defense and security systems, and electronic manufacturing services industries worldwide. The company?s Medical segment engages in the contract development, design, production, and distribution of medical related electromechanical devices for the medical OEM and ET customers primarily in the vitro diagnostic and therapeutic device areas. Its EMS segment involves in the contract manufacturing, assembly, design, preproduction, prototyping, and/or box building assemblies, such as flight control systems and fuel control systems for the aerospace, medical diagnostics systems, security systems, detection systems, lighting, and defense. The company?s DSS segment engages in the design, development, and production of electromechanical equipment, such as sonobuoys, an anti-submarine warfare device used by the United States Navy and foreign governments; and perf orms an engineering development function for the United States military and prime defense contractors on advanced technologies for defense products, and replacement of current systems. It also offers non-sonobuoy related manufacturing and services. Sparton Corporation was founded in 1900 and is headquartered in Schaumburg, Illinois.

Top 5 Medical Stocks For 2014

I love Father's Day. No, it's not because I think it's such a special day that everyone awaits with anticipation. Let's be real here: It's always going to be the runner-up to Mother's Day -- not that there's anything wrong with that.

Father's Day-sized returns
No, there are two main reasons I love Father's Day: I'm a proud father myself, and Father's Day just makes me think of my dad and all the things he's done for me. Simple as that.

I owe my love of investing to my father. And with that in mind, I give you the Father's Day Portfolio. These are 10 stocks that remind me of my dad, and together they will form a formidable, market-beating team that will offer investors outstanding returns for years to come.

Dick's Sporting Goods� (NYSE: DKS  ) is a family affair. CEO Edward Stack is the son of founder Richard Stack, and he owns close to 18%�of the shares outstanding. I like what this company has done and where it's headed. It controls 8.5% of the tremendous sporting-goods market. Boston Beer� (NYSE: SAM  ) �seems an appropriate call here. Having a beer with your dad is one of the great moments in life, and given that this company sold more than 50 beer varieties under the Samuel Adams brand in 2012, chances are pretty darn good that there may be a Sam Adams in Dad's fridge. My dad drives a�Ford� (NYSE: F  ) Expedition, and he's owned a few other Fords in his life. Every time I see the blue oval I think of him, and I think this company will play a big part in the fast-changing automobile market.� I smile so wide it looks like I have a coat hanger in my mouth when I see my dad using his iPhone and iPad, courtesy of�Apple. The guy turned 71 this Father's Day (happy birthday, Dad!) and he's embraced technology like a 15-year-old. We all know that if you have a question these days you can just ask�Google. These guys do a lot of things well, but search and maps are their specialty. It's not just iDevices for my dad, either. He loves his new Kindle Paperwhite from Amazon.com, not to mention the fact that he can order just about anything from the e-commerce giant. My dad's a doctor, and�St. Jude Medical� (NYSE: STJ  ) is a device company that has a wonderfully diverse product mix. From heart devices to strokes, Parkinson's, and migraines, �this company is playing a big role in up-and-coming medical technology. Shout-out No. 1 to our Georgia roots: Home Depot�is the mac-daddy of home-improvement retail, and whether you rent or own, you're going to need to go there at some point. The recent dividend boost and share-repurchase authorization are signs of things to come for shareholders at this Georgia-based company. E-commerce is in its early stages, and my second shout-out to Georgia is�United Parcel Service, which is one of the two big shippers that should benefit. I love this company's moat, and the capital-intensive nature of its market offers up some serious barriers to entry for competitors. As a doc, my dad knows the trouble medical waste presents, and�Stericycle (NASDAQ: SRCL  ) is the company that's taking care of business where this is concerned. Its competitive advantage only strengthens with time, and with a market cap under $10 billion, there's plenty of room to run.

For fathers and their children
I'll be tracking the results of this portfolio versus the S&P 500 indefinitely, beginning with the closing prices from Monday, June 17, 2013, and I'm confident that this one will be a long-term market-beater. This portfolio is just a simple way say thanks to my dad for the gift of investing. I count myself as very fortunate that we get to talk about investing (and golf ... lots of golf) all the time. Maybe this is one more thing we'll get to talk about for a long time to come.

Top 5 Medical Stocks For 2014: Boston Scientific Corp (BSX)

Boston Scientific Corporation is a developer, manufacturer and marketer of medical devices that are used in a range of interventional medical specialties. During the year ended December 31, 2011, its products were offered for sale by seven core businesses: Interventional Cardiology, CRM, Endoscopy, Peripheral Interventions, Urology/Women�� Health, Neuromodulation, and Electrophysiology. In January 2011, it completed the acquisition of Intelect Medical, Inc. In January 2011, it completed the acquisition of Sadra Medical, Inc. In March 2011, the Company completed the acquisition of Atritech, Inc. In February 2011, it announced the acquisitions of S.I. Therapies and ReVascular Therapeutics, Inc. In January 2011, the Company sold its Neurovascular business to Stryker Corporation. In June 2012, the Company acquired Cameron Health, Inc. of San Clemente, California and, as a result, added to its product portfolio subcutaneous implantable cardioverter defibrillator, called the S-ICD System.

Interventional Cardiology

The Company offers coronary stent product. Coronary stents are tiny, mesh tubes used in the treatment of coronary artery disease, which are implanted in patients to prop open arteries and facilitate blood flow to and from the heart. The Company offers a two-drug platform strategy with its paclitaxel-eluting and everolimus-eluting stent system offerings, and it offers a range of stent sizes. The Company markets its next-generation internally-developed and self-manufactured PROMUS Element stent system in the United States, its Europe/Middle East/Africa (EMEA) region and certain Inter-Continental countries, including China and India. It markets the PROMUS everolimus-eluting stent system, supplied to the Company by Abbott Laboratories, in Japan. It also markets its TAXUS paclitaxel-eluting stent line, including its third-generation TAXUS Element paclitaxel-eluting stent system in the U.nited States, Japan, EMEA and certain Inter-Continental countries.

The Compa! ny markets a line of products used to treat patients with atherosclerosis, a principal cause of coronary artery obstructive disease. Its product offerings include balloon catheters, rotational atherectomy systems, guide wires, guide catheters, embolic protection devices, and diagnostic catheters used in percutaneous transluminal coronary angioplasty (PTCA). The Company markets a family of intraluminal catheter-directed ultrasound imaging catheters and systems for use in coronary arteries and heart chambers, as well as certain peripheral vessels. The iLab Ultrasound Imaging System continues as its flagship console and is compatible with its line of imaging catheters. The system is designed to enhance the diagnosis and treatment of blocked vessels and heart disorders. Sadra is developing a repositionable and retrievable device for transcatheter aortic valve replacement (TAVR) to treat patients with severe aortic stenosis. The Lotus Valve System consists of a stent-mounted tissue valve prosthesis and catheter delivery system for guidance and placement of the valve. Atritech has developed a device designed to close the left atrial appendage in patients with atrial fibrillation who are at risk for ischemic stroke. The WATCHMAN Left Atrial Appendage Closure Technology, developed by Atritech, is the first device proven in a randomized clinical trial to offer an alternative to anticoagulant drugs, and is approved for use in CE Mark countries.

Cardiac Rhythm Management

The Company develops, manufactures and markets a variety of implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities, including Implantable cardioverter defibrillator (ICD) systems used to detect and treat abnormally fast heart rhythms (tachycardia) that could result in sudden cardiac death, including implantable cardiac resynchronization therapy defibrillator (CRT-D) systems used to treat heart failure, and implantable pacemaker systems used to manage slow or irregular heart rhyth! ms (brady! cardia), including implantable cardiac resynchronization therapy pacemaker (CRT-P) systems used to treat heart failure. Its product offerings include its COGNIS cardiac resynchronization therapy defibrillator (CRT-D), its TELIGEN ICD systems and its ALTRUA family of pacemaker systems. During 2011, it began the United States launch of its next-generation line of defibrillators, INCEPTA, ENERGEN and PUNCTUA.

Endoscopy

The Company markets a range of products to diagnose, treat and ease a variety of digestive diseases, including those affecting the esophagus, stomach, liver, pancreas, duodenum, and colon. Common disease states include esophagitis, portal hypertension, peptic ulcers as well as esophageal, biliary, pancreatic and colonic cancer. The Company offers the Radial Jaw 4 Single-Use Biopsy Forceps, which are designed to enable collection of large high-quality tissue specimens without the need to use large channel therapeutic endoscopes. Its exclusive line of RX Biliary System devices are designed to provide greater access and control for physicians to diagnose and treat challenging conditions of the bile ducts, such as removing gallstones, opening obstructed bile ducts and obtaining biopsies in suspected tumors. The Company also markets the Spyglass Direct Visualization System for direct imaging of the pancreatico-biliary system. The Spyglass System is a single-operator cholangioscopy device that offers clinicians a direct visualization of the pancreatico-biliary system and includes supporting devices for tissue acquisition, stone management and lithotripsy. Its products also include the WallFlex family of stents, in particular, the WallFlex Biliary line and WallFlex Esophageal line; and in 2011, the Company launched its Advanix Biliary Plastic Stent System and the Expect Endoscopic Ultrasound Aspiration Needle in the United States and certain international markets. Its Resolution Clip Device is an endoscopic mechanical clip designed to treat gastrointestinal bleeding.

T! he Company markets devices to diagnose, treat and ease pulmonary disease systems within the airway and lungs. Its products are designed to help perform biopsies, retrieve foreign bodies from the airway, open narrowings of an airway, stop internal bleeding, and ease symptoms of some types of airway cancers. Its product line includes pulmonary biopsy forceps, transbronchial aspiration needles, cytology brushes and tracheobronchial stents used to dilate narrowed airway passages or for tumor management. Asthmatx, Inc. designs, manufactures and markets a less-invasive, catheter-based bronchial thermoplasty procedure for the treatment of severe persistent asthma. The Alair Bronchial Thermoplasty System, developed by Asthmatx, has both CE Mark and Food and Drug Administration (FDA) approval and is the first device-based asthma treatment approved by the FDA.

Peripheral Interventions

The Company sells various products designed to treat patients with peripheral disease, including a line of medical devices used in percutaneous transluminal angioplasty and peripheral vascular stenting. Its peripheral product offerings include stents, balloon catheters, wires, peripheral embolization devices and vena cava filters. In 2010 and 2011, it launched several of its products internationally, including the EPIC self-expanding nitinol stent system in certain international markets, and the Carotid WALLSTENT stent system in Japan. The Company launched three new peripheral angioplasty balloons in 2011, including its next-generation Mustang percutaneous transluminal angioplasty (PTA) balloon, its Coyote balloon catheter, a highly deliverable and ultra-low profile balloon dilatation catheter designed for a range of peripheral angioplasty procedures and its Charger PTA Balloon Catheter, a 0.035 inch percutaneous transluminal angioplasty balloon catheter designed for post-stent dilatation, as well as conventional balloon angioplasty to open blocked peripheral arteries. The Company has commenced a limited ma! rket rele! ase of its OFFROAD re-entry catheter system in certain international markets, and in February 2012, it launched its TRUEPATH intraluminal CTO device in the United States.

The Company sells products designed to treat patients with non-vascular disease. Its non-vascular suite of products include biliary stents, drainage catheters and micro-puncture sets designed to treat, diagnose and ease various forms of benign and malignant tumors. The Company continues to market its extensive line of Interventional Oncology product solutions, including the Renegade HI-FLO Fathom microcatheter and guidewire system and Interlock - 35 Fibered IDC Occlusion System for peripheral embolization. The Company�� FilterWire EZ Embolic Protection System is a filter designed to capture embolic material that may become dislodged during a procedure, which could otherwise travel into the microvasculature where it could cause a heart attack or stroke. It is commercially available in the United States, its EMEA region and certain Inter-Continental countries for multiple indications, including the treatment of disease in peripheral, coronary and carotid vessels. It is also available in the United States for the treatment of saphenous vein grafts and carotid artery stenting procedures.

Urology/Women�� Health

The Company�� Urology/Women�� Health division develops, manufactures and sells devices to treat various urological and gynecological disorders. The Company sells a variety of products designed to treat patients with urinary stone disease, stress urinary incontinence, pelvic organ prolapse and excessive uterine bleeding. The Company offers a line of stone management products, including ureteral stents, wires, lithotripsy devices, stone retrieval devices, sheaths, balloons and catheters.

The Company markets a range of devices for the treatment of conditions, such as female urinary incontinence, pelvic floor reconstruction (rebuilding of the anatomy to its original state), and ! menorrhag! ia (excessive menstrual bleeding). It offers a breadth of mid-urethral sling products, sling materials, graft materials, pelvic floor reconstruction kits, and suturing devices. The Company markets its Genesys Hydro ThermAblator (HTA) system, a next-generation endometrial ablation system designed to ablate the endometrial lining of the uterus in premenopausal women with menorrhagia. The Genesys HTA System features a smaller and lighter console, simplified set-up requirements, and an enhanced graphic user interface and is designed to improve operating performance.

Neuromodulation

The Company within its Neuromodulation business markets the Precision Spinal Cord Stimulation (SCS) system, used for the management of chronic pain. In 2011, the Company launched its Clik Anchor for its Precision Plus SCS System, a rechargeable SCS device for chronic pain management. During 2011, it received FDA approval for and launched the Infinion 16 Percutaneous Lead, a 16-contact percutaneous lead. The Company also markets the Linear 3-4 and Linear 3-6 Percutaneous Leads for use with its SCS systems, which are designed to provide physicians more treatment options for their chronic pain patients. Intelect Medical, Inc. is a development-stage company developing advanced visualization and programming for the Vercise system.

Electrophysiology

The Company within its Electrophysiology business develops less-invasive medical technologies used in the diagnosis and treatment of rate and rhythm disorders of the heart. Included in its product offerings are radio frequency (RF) generators, steerable RF ablation catheters, intracardiac ultrasound catheters, diagnostic catheters, delivery sheaths, and other accessories. Its products include the Blazer and Blazer Prime line of temperature ablation catheters, designed to deliver enhanced performance, responsiveness, and durability. Its cooled ablation portfolio includes the closed-loop irrigated catheter on the market, the Chilli II cooled! ablation! catheter, and the newly launched Blazer Open-Irrigated ablation catheter with a Total Tip Cooling Design.

The Company competes with Abbott Laboratories, Medtronic, Inc., St. Jude Medical, Inc. and Johnson & Johnson.

Advisors' Opinion:

• [By gurujx]

  Boston Scientific (BSX): EVP & CFO Jeffrey Capello Sold 525,000 Shares

  EVP & CFO Jeffrey Capello sold 525,000 shares of BSX stock on Aug. 29 at the average price of $10.68. Capello owns at least 147,447 shares after this. The price of the stock has increased by 7.68% since.

• [By Dimitra DeFotis]

  Colleague Dave Englander recommended taking profits in another medical device maker, Boston Scientific (BSX) in mid-August. At the time, he noted that stock was up 107% since his favorable recommendation had appeared, outpacing the Standard & Poor’s 500 Index by 80 points. He noted Boston Scientific faces competition from St. Jude and Medtronic (MDC), and he said that the market for stents and defibrillators has stabilized but is “not likely to grow meaningfully.” �(See “Time to Sell These Winners,” Aug. 14, subscription required.)

Top 5 Medical Stocks 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.

Top Value Companies To Invest In 2014: InspireMD Inc (NSPR.A)

InspireMD, Inc., incorporated on February 29, 2008, is a medical device company. The Company is focusing on the development and commercialization of its stent platform technology, MGuard. MGuard provides embolic protection in stenting procedures by placing a micron mesh sleeve over a stent. Its initial products are marketed for use mainly in patients with acute coronary syndromes, notably acute myocardial infarction (heart attack) and saphenous vein graft coronary interventions (bypass surgery). The Company�� products include MGuard Coronary Plus Bio-Stable Mesh, MGuard Peripheral Plus Bio-Stable Mesh, MGuard Carotid Plus Bio-Stable Mesh and MGuard Coronary Plus Bio-Absorbable Drug-Eluting Mesh. Its initial MGuard Coronary products incorporated a stainless steel stent. The Company subsequently replaced this stainless steel platform with a more advanced cobalt-chromium based platform, which the Company refers to as the MGuard PrimeTM version of its MGuard Coronary. The Company operates in Germany through its wholly owned subsidiary InspireMD GmbH.

The Company focuses on applying its technology to develop additional products used for other vascular procedures, specifically carotid (the arteries that supply blood to the brain) and peripheral (other arteries) procedures. The MGuard stent is an embolic protection device based on a protective sleeve, which is constructed out of an ultra-thin polymer mesh and wrapped around the stent. The protective sleeve is comprised of a micron level fiber-knitted mesh, engineered in an optimal geometric configuration and designed for utmost flexibility while retaining strength characteristics of the fiber material.

MGuard - Coronary Applications

The Company�� MGuard Coronary with a bio-stable mesh and its MGuard Coronary with a drug-eluting mesh focuses on the treatment of coronary arterial disease. The Company�� first MGuard product, the MGuard Coronary with a bi o-stable mesh, is comprised of its mesh sleeve wrapped arou! n! d a bare-metal stent. The bio-absorbability of MGuard Coronary with a drug eluting bio-absorbable mesh is intended to improve upon the bio-absorbability of other drug-eluting stents, in light of the wide surface area of the mesh and the small diameter of the fiber.

MGuard - Carotid Applications

The Company focuses on marketing its mesh sleeve coupled with a self-expandable stent for use in carotid-applications. Expandable stent is a stent that expands without balloon dilation pressure or need of an inflation balloon. This product is under development, although the Company has temporarily delayed its development until additional funding is secured.

MGuard - Peripheral Applications

Peripheral Artery Disease, also known as peripheral vascular disease, is characterized by the accumulation of plaque in arteries in the legs, need for amputation of affected joints or even death, when untreated. Peripheral Artery Disease is treated either by trying to clear the artery of the blockage, or by implanting a stent in the affected area to push the blockage out of the way of normal blood flow.

The Company competes with Abbott Laboratories, Boston Scientific Corporation, Johnson & Johnson, Medtronic, Inc., The Sorin Group, Xtent, Inc., Cinvention AG, OrbusNeich, Biotronik SE & Co. KG, Svelte Medical Systems, Inc., Reva Inc. and Stentys SA.

Top 5 Medical Stocks For 2014: Rexahn Pharmaceuticals Inc (RNN)

Rexahn Pharmaceuticals, Inc. (Rexahn) is a development-stage biopharmaceutical company. The Company focuses on the development of cures for cancer to patients worldwide. The Company�� pipeline features one drug candidate in Phase II clinical trials. The Company also has several other drug candidates in pre-clinical development. In addition, the Company has two renal cell carcinoma (CNS) candidates, Serdaxin, CNS Disorders drug for depression and neurodegenerative diseases and Zoraxel, which is a erectile dysfunction (ED) and sexual dysfunction drug that are in clinical stages and the Company is are exploring options for further development . The Company�� drug candidate, Archexin is an anticancer Akt inhibitor.

Archexin

Archexin is potent inhibitor of the Akt protein kinase (Akt) in cancer cells. Archexin has FDA orphan drug designations for five cancers (RCC, glioblastoma, and cancers of the ovary, stomach and pancreas). Multiple indications for other solid tumors can also be pursued. Archexin inhibit both activated and inactivated forms of Akt, and to reverse the drug resistance observed with the protein kinase inhibitors. Archexin is an antisense oligonucleotide (ASO) compound that is complementary to Akt mRNA, and selective for inhibiting mRNA expression and production of Akt protein. As of December 31, 2011, Archexin was in Phase II clinical trials for the treatment of pancreatic cancer with enrollment completed in September, 2011.

Serdaxin

Serdaxin is an extended release formulation of clavulanic acid, which is an ingredient present in antibiotics approved by the FDA. The Company had been developing Serdaxin for the treatment of depression and neurodegenerative disorders. From January to September, 2011, the Company conducted a randomized, double-blind, placebo-controlled study compared two doses of Serdaxin, 0.5 milligram and 5 milligram, to placebo over an eight-week treatment period for major depressive disorder (MDD) patients. As of Dec! ember 31, 2011, the Company had not made a determination of Serdaxin�� future paths or resource allocations to further develop Serdaxin to treat MDD.

Zoraxel

Zoraxel is an orally administered, on-demand tablet to treat sexual dysfunction. Zoraxel is a dual enhancer of neurotransmitters in the brain that play a key role in sexual activity phases of motivation and arousal, erection and release, and may be the ED drug to affect all three of these phases of sexual activity. As of December 31, 2011, the Company was evaluating how to proceed with the Phase IIb study of Zoraxel.

The Company�� Pre-clinical Pipeline Drug Candidates includes RX-1792, which is a small molecule anticancer EGFR inhibitor; RX-5902, which is a small molecule anticancer ribonucleic acid (RNA) helicase regulator; RX-3117, which is a Small molecule anticancer deoxyribonucleic acid (DNA) synthesis Inhibitor; RX-8243, which is a small molecule anticancer aurora kinase inhibitor; RX-0201-Nano, which is a nanoliposomal anticancer Akt inhibitor; RX-0047-Nano, which is an nanoliposomal anticancer HIF-1 alpha inhibitor and RX-21101, which is a nano-polymer Anticancer.

Top 5 Medical Stocks For 2014: Myriad Genetics Inc (MYGN.O)

Myriad Genetics, Inc. (Myriad) is a molecular diagnostic company. The Company is focused on developing and marketing predictive medicine, personalized medicine and prognostic medicine tests. It performs all of its molecular diagnostic testing and analysis in its own reference laboratories. These technologies include the cornerstone technologies of biomarker discovery, high-throughput deoxyribo nucleuc acid (DNA) sequencing, ribo nucleic acid (RNA) expression and multiplex protein analysis. The Company uses this information to guide the development of new molecular diagnostic tests that are designed to assess an individual's risk for developing disease later in life (predictive medicine), identify a patient's likelihood of responding to drug therapy and guide a patient's dosing to ensure optimal treatment (personalized medicine), or assess a patient's risk of disease progression and disease recurrence (prognostic medicine).

As of June 30, 2012, the Company h ad launched nine commercial molecular diagnostic tests. The Company markets these tests through its own approximate 385-person sales force in the United States. The Company also markets its BRACAnalysis, COLARIS, and COLARIS AP tests through its own European sales force and have entered into marketing collaborations with other organizations in selected Latin American, European and Asian countries. The Company also generates revenue by providing companion diagnostic services to the pharmaceutical, and biotechnology industries and medical research institutions utilizing its multiplexed immunoassay technology.

Molecular Diagnostic Tests

The Company's molecular diagnostic tests are designed to analyze genes, their mutations, expression levels and proteins to assess an individual's risk for developing disease later in life, determine a patient's likelihood of responding to a particular drug, assess a patient's risk of disease progression and disease recu rrence and measure a patient's exposure to drug therapy to! e! nsure optimal dosing and reduced drug toxicity. The Company's BRACAnalysis test is a analysis of the BRCA1 and BRCA2 genes for assessing a woman's risk of developing hereditary breast and ovarian cancer. BRACAnalysis accounted for 81.7% of the Company's total revenue during the fiscal year ended June 30, 2012. Its The Company's COLARIS test is an analysis of the MLH1, MSH2, MSH6 and PMS2 genes for assessing a person's risk of developing colorectal cancer or uterine cancer.

The Company's COLARIS AP test detects mutations in the APC and MYH genes, which cause a colon polyp-forming syndrome known as Familial Adenomatous Polyposis (FAP), a more common variation of the syndrome known as attenuated FAP, and the MYH-associated polyposis signature (MAP). The Company's MELARIS test analyzes mutations in the p16 gene to determine genetic susceptibility to malignant melanoma. The Company's OnDose test is a nanoparticle immunoassay that is designed to assist oncologists in optimizing 5-FU (fluorouracil) anti-cancer drug therapy in colon cancer patients on an individualized basis. The Company's PANEXIA test is a comprehensive analysis of the PALB2 and BRCA2 genes for assessing a person's risk of developing pancreatic cancer later in life. The Company's PREZEON test is an immunohistochemistry test that analyzes the PTEN gene and assesses loss of PTEN function in many cancer types.

The Company's Prolaris test is a 46-gene molecular diagnostic assay that assesses whether a patient is likely to have a slow growing, indolent form of prostate cancer that can be safely monitored through active surveillance, or a more aggressive form of the disease that would warrant aggressive intervention, such as a radical prostatectomy or radiation therapy. The Company's TheraGuide 5-FU test analyzes mutations in the DPYD gene and variations in the TYMS gene to assess patient risk of toxicity to 5-FU (fluorouracil) anti-cancer drug therapy.

< p>Companion Diagnostic Services and Other Revenue

! Throug! h Myriad RBM Inc., the Company provides biomarker discovery and companion diagnostic services to the pharmaceutical, biotechnology, and medical researches industries utilizing its multiplexed immunoassay technology. The Company's technology enables the Company to screen large sets of clinical samples from both diseased and non-diseased populations against the Company's menu of biomarkers. The Company's companion diagnostic services consist of Multi-Analyte Profile (MAP), Multiplexed Immunoassay Kits and TruCulture.

The Company has compiled a library of over 550 individual human and rodent immunoassays for use in its multi-analyte profile (MAP) testing services. The Company has also developed RodentMAP, a panel for use in pre-clinical animal studies and OncologyMAP, which measures cancer-related proteins to assists researchers accelerate the pace of discovery, validation and translation of cancer biomarkers for early detection, patient stratification and therapeu tic monitoring. The Company has developed multiplexed immunoassay kits that enable its customers to leverage its technology services with their in-house capabilities. The Company's internally developed multiplexed immunoassay kits include all of the components necessary for a customer to perform a test on their own Luminex instrument. TruCulture is a simple, self-contained whole blood culture that can be deployed to clinical sites around the world for acquiring cell culture data without specialized facilities or training.

Leading Indicators Signal More Growth for Rest of 2013

The Conference Board has released its index of leading economic indicators (LEI). While the name sounds like much a of a preview, it is a July number and we would caution that many of the components inside the total tally are already known and visible before this was released. July’s leading indicators were up by 0.6%, and Bloomberg was calling for a consensus reading of 0.5%, from a range of 0.2% to 0.7%. June’s reading was flat at 0.0% after May was up 0.2% and April was up 0.8%. The overall tone is very positive with widespread gains.

The Conference Board indicated that this is now pointing to a gradually strengthening expansion through the end of the year. Ken Goldstein, economist at the Conference Board, said:

The improvement in the LEI, and pick up in the six-month growth rate, suggest better economic and job growth in the second half of 2013. However, the biggest uncertainties remain the pace of business spending and the impact of slower global growth on U.S. exports.

The Coincident Economic Index increased 0.2% in July to 106.3, after a 0.1% increase in June and a 0.3% increase in May. The Lagging Economic Index fell by 0.2% in July to 118.2 after a 0.2% gain in June and a 0.3% gain in May.

Again, much of the data making up the “leading indicators” is known ahead of time, which is why we often say that leading indicators are not exactly all that leading. Here are the indicators used for the reading:

Average weekly hours, manufacturing Average weekly initial claims for unemployment insurance Manufacturers’ new orders, consumer goods and materials ISM Index of New Orders Manufacturers’ new orders, nondefense capital goods excluding aircraft orders Building permits, new private housing units Stock prices, 500 common stocks Leading Credit Index Interest rate spread, 10-year Treasury bonds less federal funds Average consumer expectations for business conditions

US Airways/American Workers' Merger Blitz Is Unique, Expert Says

Hot Energy Stocks To Buy For 2014

WASHINGTON (TheStreet) -- Employees of US Airways (LCC) and American (AAMRQ) blitzed Washington in support of a planned merger, which a veteran antitrust attorney said is unprecedented.

"Antitrust attorneys are always fond of saying that political pressure is never effective when it comes to mergers and antitrust, and that sometimes it can backfire," said John Briggs, a veteran Washington antitrust attorney, in an interview. Briggs is co-chair of Axinn Veltrop & Harkrider's Antitrust Group and managing partner of the firm's Washington, D.C. office.

"I've been doing this for four decades," Briggs said. "I've never seen the parties to a deal put together a rally on Capitol Hill. I've never heard of such a thing. They've got unions, companies, Democrats, Republicans -- it's bizarre.

"Will it make a difference? Maybe it could. It's got to make the Department of Justice uncomfortable. They're right down the street. The attorney general will know about it," he added. James Ray, spokesman for the US Airline Pilots Association, said he was part of a group of union leaders that met with an undersecretary of labor. Laura Glading, president of the Association of Professional Flight Attendants, was part of a group that met with Bill Baer, who heads the Justice Department's antitrust division. The department announced Aug. 13 that it will oppose the merger in a U.S. District Court case, now slated to be heard beginning Nov. 25. On Wednesday afternoon, about 350 employees gathered for a rally outside the U.S. Capitol building. Five members of Congress from North Carolina, Pennsylvania and Texas spoke in support of the merger, as did a half-dozen union leaders. "It was a beautiful day with perfect blue skies and all of us from two companies coming together with one goal in mind: Let us compete together," said US Airways spokeswoman Michelle Mohr. "We were just getting our voices out there." At the rally, Glading described a 45-minute meeting between union leaders, Baer, and a deputy attorney general. "We talked about why this merger makes sense for us. How invested these employees are. How for the first time we felt hope, and now this hope can be dashed," Glading said. "They were very very attentive, they asked a lot of questions, and I think it was a great opportunity for us to get our stories out, because it's our story that got us here today." Besides the rally, employees called on members of Congress and the Senate. The goal was to call on every member. Ray said he was part of a four-member team that called on about 15 members of Congress over two days. Most meetings involved congressional staff, but U.S. Rep. Richard Hudson, R.-North Carolina, met with the group. "He is on board," Ray said. Briggs said the labor involvement may have an impact, given that labor backed President Obama in two elections. "It took a lot of union negotiations to make this (merger) happen," Briggs said. "The CEO of US Airways is using some unorthodox strategies." Briggs said he was surprised that the Justice Department opposed the merger. It wasn't just the airline industry that was caught napping. "The antitrust was leading the charge saying this is going to happen -- that was the unanimous view," he said. In its surprise announcement that it would oppose the merger, the Justice Department "seemed to be looking mournfully at their own past approval of (similar) deals" involving Delta (DAL) and United (UAL), Briggs said. "But (both sides) have their stories to tell. "The government is right that the airline industry is a mess; competition is not what it could be," he said. "The airlines are right that (DOJ) is changing the game here. Every other deal has been looked at through different eyeglasses. But there's always one deal too many. There's always a deal that can't get done." Asked about the possibility of a settlement, Briggs said that raising the unusual issue of competition on one-stop routes in the DOJ's complaint appears to preclude one, since a deal is difficult to imagine, but he noted that Judge Colleen Kollar-Kotelly apparently wants one. "Judges who set things for Thanksgiving and Christmas and New Year's always want to settle," he said. Follow @tedreednc -- Written by Ted Reed in Charlotte, N.C. >To contact the writer of this article, click here: Ted Reed

5 Big Trades to Take as the Fed Hits the Gas

BALTIMORE (Stockpickr) -- Taper? What taper? Fed Chairman Ben Bernanke may as well have worn a suit made of money and a solid gold grill to his press conference yesterday. It would sent the same message to Wall Street: this tap ain't dry yet.

But even though the Fed went with the boilerplate minutes release and conventional 2 p.m. press conference, it didn't take long for investors to get the message. The S&P 500 shoved up hard to close at 1,725.52 -- a new all-time high for the big index.

From a technical standpoint, this move is textbook after the bounce off support we got earlier this month.

I've heard plenty of people claim that prolonged quantitative easing means "more free money." Make no mistake: QE isn't free. Not by a long shot. But the Fed is dishing it out no matter what, so anyone who doesn't position themselves long equities in the face of it is setting themselves up for failure.

And this week, the technicals are helping us spot some of the most attractive setups. Today, we'll take a closer look at five of them.

If you're new to technical analysis, here's the executive summary.

Technicals are a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time.

Every week, I take an in-depth look at big names that are telling important technical stories. Here's this week's look at five high-volume stocks to trade this week.

WisdomTree Investments

2013 has been a stellar year for asset manager WisdomTree Investments (WETF); shares have nearly doubled since the calendar flipped over to January. That's not a huge surprise considering the fact that investment firms are effectively leveraged plays on this equity rally. But now, the technical setup forming in shares of WisdomTree points to even higher ground for the rest of the year.

Right now, WETF is forming an ascending triangle pattern, a bullish setup that's formed by a horizontal resistance level above shares at $14 and uptrending support to the downside. Basically, as WETF bounces in between those two technical levels, it's getting squeezed closer and closer to a breakout above that $14 level. When that happens, investors have a buy signal.

WisdomTree isn't exactly cheap right now. From a fundamental standpoint, this stock looks downright pricey -- but that has little to do with shares' price action right now. Until the technicals change, the high probability returns remain on the long-side of WETF.

Toyota Motors

We're seeing the exact same setup in shares of Japanese automaker Toyota Motors (TM). Toyota has been forming an ascending triangle of its own since the start of May -- but now, shares are getting extremely close to breaking out above their resistance level at $130. That $130 breakout is the buy signal for Toyota.

Whenever you're looking at any technical price pattern, it's critical to think in terms of buyers and sellers. Triangles 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 resistance line at $130, for example, is a price where there is an excess of supply for shares; in other words, it's a place where sellers have been more eager to sell and take gains than buyers have been to buy. That's what makes a confirmed breakout above $130 so significant; it means buyers have finally wrestled control of this stock.

The 50-day moving average has acted as a good proxy for support on the way up – that makes it a logical place to keep a protective stop if you decide to become a buyer.

Dunkin' Brands Group

Dunkin' Brands Group (DNKN) is another name that's fared much better than the market since the start of 2013. Year-to-date, Dunkin' has rallied more than 38%, outpacing the S&P by close to double digits. A breakout earlier this week points to more upside in DNKN in the short-term.

After rallying hard to start the year, Dunkin' spent the last few months consolidating sideways, bleeding off some overbought momentum after a long-term move higher. DNKN's consolidation was bounded by horizontal resistance at $45 and horizontal support down at $42, forming a setup called a "rectangle." The rectangle gets its name because it effectively "boxes in" a stock's price action between two levels. When a stock breaks out from the range, it becomes tradable.

The logic behind a rectangle breakout is the same as the triangles in Toyota and WisdomTree; Monday's breakout in DNKN means that buyers have finally wrestled control of this stock from sellers. Shares haven't rocketed away after their move, and that's providing a second chance at a low-risk entry for buyers. If you decide to jump in here, just be sure to use proper risk management with a tight stop under $45.

CA

The chart of CA (CA) doesn't need much introduction -- it's about as simple as a technical pattern gets. CA is currently bouncing higher in an uptrending channel, a setup that gives us a very high probability range for shares of CA to remain within. Here's how to trade it.

Trendline support is the price level to watch right now in CA -- it's been the floor that's kept CA bouncing higher each of the last five times it's been tested. Even though it generally makes sense to be a buyer anywhere in an uptrend, the ideal time to buy comes on a bounce off of support.

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). With little room between the trendline support line and CA's most recent price, this week looks like as good a time as any to start building a position.

Oi

There's no two ways about it: Brazilian telco Oi (OIBR) has gotten shellacked in recent months alongside the rest of the emerging market. But this stock is starting to look "bottomy" right now, and the Fed's latest no-taper announcement should provide an extra shot in the arm in September.

Oi is currently forming a double-bottom setup, a pattern that's identified by two swing lows that take place at approximately the same level. The bottoms are separated by an swing high that's in between them. That peak is the breakout level that tells traders when the reversal pattern is complete. In the case of OIBR, that level is $2.10. Yesterday's 9.6% rally in OIBR brought shares within a nickel of closing at that $2.10 breakout level, but I'd suggest waiting for a material move through it before putting money on this trade.

In the meantime, momentum adds some extra confirmation to the move; 14-day RSI has been in an uptrend since the second rally started that's bringing it into "overbought" territory. Contrary to popular belief, going overbought is statistically a better indicator of higher prices than a reversal.

OIBR is a volatile name, so it's likely to move quickly this week. Keep a close eye on that share price if you're looking to trade it.

To see this week's trades in action, check out this week's Must-See Charts portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

S&P Downgrades Dell’s Credit Rating (DELL)

Standard & Poor’s Rating Services announced on Wednesday that it has lowered the corporate credit rating on Dell Inc. (DELL).

The PC maker’s corporate credit rating was lowered form BBB to BB-, and its commercial paper rating was lowered from A-2 to B. Dell’s issue-level rating on senior unsecured debt was also downgraded from BBB to B+. Standard & Poor’s also assigned the company a stable outlook.

Commenting on the downgrade, Standard & Poor’s credit analyst Martha Toll-Reed noted “The downgrade incorporates our revision of Dell’s business risk profile to fair from satisfactory, reflecting ongoing pricing pressures and volume declines in PCs, which is still Dell’s largest business by revenue, and also our revision of its financial risk profile to aggressive from modest, pro forma for the significantly higher leverage resulting from the proposed LBO.”

Dell shares traded flat during Wednesday’s session. Year-to-date the stock is up 29.68%.

HUDCO's Rs 750-cr tax-free bond issue hits market today

The bonds are in the nature of secured, redeemable, non-convertible debentures.

The minimum application size for the issue is five bonds of Rs 1,000 each and in multiples of one bond thereafter.

Also Read - IIFL secured bond issue opens today

The issue opens today and will close on October 14. The bonds will be listed on the BSE.

A coupon rate of 8.14 percent, 8.51 percent and 8.49 percent, payable annually for 10, 15 and 20 years respectively is offered for qualified institutional buyers, corporates and high networth individuals applying for bonds of over Rs 10 lakh.

An additional 0.25 percentage points will be given to retail individual investors subscribing up toRs 10 lakh. Forty per cent of the issue is reserved for retail investors.

CARE and India Ratings have assigned a high degree of safety rating regarding timely servicing of financial obligations.

The bonds will be issued in both physical and dematerialised forms.

Meanwhile, Rural Electrification Corporation which came out with a tax-free issue for Rs 1,000 crore on August 30, with a green-shoe option of Rs 2,500 crore, has closed its offer on Monday ahead of the closure date of September 23, as it had been oversubscribed.

Intel: Dispelling A Dangerous Misconception

It is my belief that there is a very dangerous misconception with respect to Intel's (INTC) 22 nanometer FinFET process being propagated on the internet. Normally, I would not bother responding to it, particularly as these days I find that I just don't need the headache, but as somebody who has kept his readers well informed about the Intel story, I feel that it is my responsibility to address it.

So, what is this "dangerous misconception" that I refer to? The notion that Intel's 22 nanometer process was not a "full shrink" from the prior 32 nanometer node, and that the "22 nanometer" node was largely a "focus on implementing FinFETs" without the attendant transistor size decrease. In this article, I lay out a counter-argument that I hope investors will appreciate.

10 Best Cheap Stocks To Buy For 2014

Intel's 22 Nanometer Was A Full Die Shrink

The whole idea behind "Moore's Law" is economics - not chip performance. The "law" essentially states that every two years or so, IC designers would be able to put twice as many transistors in a given physical area. Of course, a corollary to this "fact" is that the cost per transistor goes down significantly in each generation thanks to these die shrinks. Now, let me be clear, the actual cost of the wafer goes up, but the area savings (which means more chips per wafer) on a per chip basis should be enough to more than offset the wafer cost increase.

Note that Moore's Law breaks down (that is, cost per transistor no longer goes down) if one does not "shrink" the transistors (which are what integrated circuits are made of). So if you're an investor in a semiconductor company and you start to hear that each process node does NOT provide a full node shrink, then the economics of what that company is doing are in serious trouble. Fortunately, the rumors that Intel's 22nm node was not a full shrink over 32nm are patently false, as I will no! w demonstrate.

So, the tough thing about comparing "process density" is that the size of a given IC isn't just dependent on the "process node" - the "name" (such as "22 nanometer") really just refers to the minimum feature size that you'll find, rather than the "average" feature size. Also, IC vendors often make trade-offs when designing a particular chip that may mask the "true capabilities" of a given process. However, luckily for investors, Intel's development cycle essentially involves building a design on a given process node, and then shrinking essentially that same design to a next generation node. From there, since the designs are very similar, it becomes mostly a process comparison.

To prove my point, I give two exhibits. First, here is Intel's "Sandy Bridge" die. It weighs in at 216mm^2 and sports 995 million transistors:

(click to enlarge)

Now, here's Intel's "Ivy Bridge" die, which weighs in at 160mm^2 and packs 1.3B transistors:

(click to enlarge)

So, let's do some basic math, shall we?

Chip	Process Node	Die Size	# Transistors	Billion Transistors/mm^2 (i.e. DENSITY)
Sandy Bridge	32nm	216mm^2	0.995B	.0046
Ivy Bridge	22nm	160mm^2	1.3B	.008125

So, with the 32nm implementation of a given design, we get 0.0046 billion transistors/mm^2 and in the 22nm implementation, we get a much better 0.008125 billion transistors/mm^2. This is a density improvement of roughly 76% generation-over-generation. Not quite 2x the transistors in a givne area, but scaling ! is never ! quite perfect and certain design decisions may have kept the chip from scaling as well as it could have in theory. But you see the very real economic benefits here, right? For what is likely a 5-10% increase in wafer costs, Intel can sell a much more feature-rich enhancement of an older design, but at the same time sell less silicon. All of this for the same price that it was selling the previous chips! Nifty, eh?

But Wait, Was Intel's "32nm" Inferior To The Foundries'?

In a world in which Intel's product lines and those of the many semiconductor companies that utilize external foundries now seem to compete (particularly in the mobile battleground), process technology (from many standpoints - performance, power, density, etc.) is now something that investors really care about, particularly in trying to guess the competitive landscape several years out.

While I do not intend to make any such comparison in this article, I do realize that the above comparison is an "Intel to Intel" comparison, and that Intel's "32nm" starting point may not be comparable to, say, 32nm from the likes of Global Foundries/IBM Common Platform Alliance. Note that densities across different designs (which again may be optimized for different targets), we can get a ballpark estimate as long as we use somewhat similar designs. I wouldn't want to compare a pure GPU or an FPGA to a CPU, but I would be happy to compare a "pure" CPU to a "pure" CPU.

To that end, let me bring out my two examples: the first is Intel's "Sandy Bridge-EP" die - this is an 8 core, server oriented chip that weighs in at 416mm^2 and packs in 2.263 billion transistors. Built, of course, on Intel's 32nm process:

(click to enlarge)

In the other corner, I have AMD's (AMD) "Vishera". This is a 4 module/8 core CPU product that has roughly the same cache-to-logic mix that the Sandy Bridge-EP does (althoug! h, again,! this is not a perfect comparison):

(click to enlarge)

This bad-boy weighs in at 315mm^2 and packs in 1.2B transistors. Using basic mathematics, we get the following densities:

So, let's do some basic math, shall we?

Chip	Process Node	Die Size	# Transistors	Billion Transistors/mm^2 (i.e. DENSITY)
Sandy Bridge-EP	Intel 32nm HKMG	416mm^2	2.26B	.0054
Vishera	Common Platform/GloFo 32nm HKMG	315mm^2	1.2B	0.0038

The Intel chip looks a bit denser, but again - these are NOT the same designs (and the AMD one looks a lot more automated, which can often dent density in exchange for easier design), so a pure "Apples to Apples" process density comparison is not possible. We can, however, see that these designs are roughly in the same ballpark. This means that Intel's "32nm" was about on-par with the competing "32nm" process from the Common Platform Alliance at the time in real designs. This also means that if 32nm -> 22nm for Intel gave a "full shrink" worth of density improvements, then Intel's "22nm" really was a "full node move".

Source: Intel: Dispelling A Dangerous Misconception

Disclosure: I am long INTC, AMD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

Hot Cheap Stocks To Own For 2014

It was a deal too good to be true. Google (NASDAQ: GOOG  ) introduced Chromecast on Wednesday. The small $35 gadget plugs into a TV's HDMI port, allowing it to pull video and audio from smartphones, tablets, and laptops. Folks using the Chrome browser can even blow up their computing sessions on the bigger television screen. Any device sharing the same Wi-Fi network -- yes, Wi-Fi is required -- can zap content right into any TV with an available HDMI port.

The world's leading search engine inexplicably thought it needed to give early adopters a reason to fork over that fair ransom. It decided to purchase a bunch of three-month subscriptions from�Netflix� (NASDAQ: NFLX  ) and package them into the deal.�

When Chromecast sold like hotcakes -- or, perhaps, like dirt-cheap TV gadgetry that's made even cheaper when accounting for the $24 (plus tax) value of three months of Netflix for new or existing subscribers -- it put an end to the promotion.�

Hot Cheap Stocks To Own For 2014: Cardero Resource Corporation(CDY)

Cardero Resource Corp., together with its subsidiaries, engages in the acquisition, exploration, and development of mineral properties in Mexico, Peru, Argentina, the United States, and Canada. The company holds a 75% interest in the Carbon Creek deposit, a metallurgical coal development project located in the Peace River Coal Field of northeast British Columbia, Canada. It also has an option to acquire 100% interest in the Pampa El Toro project, an iron sands deposit, located in southern Peru; option to acquire up to an 85% interest in the Longnose property in St. Louis county, northeastern Minnesota; and 100% leasehold interest in the Titac property, located in St. Louis county, northeastern Minnesota. The company was formerly known as Sun Devil Gold Corp. and changed its name to Cardero Resource Corp. in May 1999. Cardero Resource Corp. was founded in 1985 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Louis]

  Cardero Resource Corp.(CDY) is down about 18% since the start of 2011, but shares are still up 50% in the past six months. Currently at $1.80, this mineral exploration company is a penny stock worth buying with a 52-week range of $1 to $2.37.

Hot Cheap Stocks To Own For 2014: Sirius XM Radio Inc.(SIRI)

Sirius XM Radio Inc. provides satellite radio services in the United States and Canada. It broadcasts a programming lineup of approximately 135 channels of commercial-free music, sports, news and information, talk and entertainment, traffic, and weather on subscription fee basis through two satellite radio systems in the United States; and holds an interest in the satellite radio services offered in Canada. The company also simulcasts music and selected non-music channels over the Internet; and offers applications to allow consumers to access its Internet services on mobile devices. As of December 31, 2010, it had 20,190,964 subscribers. In addition, the company designs, establishes specifications, sources or specifies parts and components, and manages various aspects of the logistics and production of satellite radios; licenses its technology to various electronics manufacturers to develop, manufacture, and distribute radios under various brands; and imports radios distri buted through its Websites. The company?s satellite radios are primarily distributed through automakers, retailers, and its Websites. Further, it provides music services for commercial establishments; a satellite television service to offer music channels as part of certain programming packages on the DISH Network satellite television service; music and comedy channels to mobile phone users through mobile phone carriers; Backseat TV, a service offering television content designed primarily for children in the backseat of vehicles; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedules and scores, and movie listings; and real-time traffic and weather services. The company was formerly known as Sirius Satellite Radio Inc. and changed its name to Sirius XM Radio Inc. in August 2008. Sirius XM Radio Inc. was founded in 1990 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Victor Mora]

  Sirius XM Radio provides audio entertainment and information services via subscription services to a growing listener base. The stock has been moving higher in recent times but is now consolidating gains so it may need a bit of time. Over the last four quarters, earnings and revenue figures have improved which has really sat well with investors in the company. Relative to its peers and sector, Sirius XM Radio has been a poor performer year-to-date. WAIT AND SEE what Sirius XM Radio does this coming quarter.

Top 5 Safest Companies To Buy Right Now: Cloud Peak Energy Inc(CLD)

Cloud Peak Energy Inc., through its subsidiaries, engages in coal mining operations in the Powder River Basin of the United States. It produces sub-bituminous steam coal with low sulfur content for electric utilities and industrial customers. The company owns and operates Antelope surface coal mine located to the south of Gillette, Wyoming; the Cordero Rojo surface coal mine located to the south of Gillette, Wyoming; and the Spring Creek surface coal mine located in Montana. It also owns a 50% interest in the Decker surface coal mine located in Montana. As of December 31, 2010, it had approximately 970 million tons of proven and probable reserves. The company was founded in 1993 and is headquartered in Gillette, Wyoming.

Advisors' Opinion:

• [By seekingalpha.com]

  The third-largest coal producer in the United States, the company has approximately 970 million tons of proven and probable reserves. It supplies its product to electricity utilities.
  
  Shares are trading at $20.06 at the time of writing, compared to their 52-week trading range of $14.77 to $24.69. At the current market price, the company is capitalized at $1.07 billion. Earnings per share for the last fiscal year were $2.07, placing the shares on a PE ratio of 9.69. It paid no dividend last year.

  These earnings are expected to dip through the next couple of years, retreating to $1.79 this year, before rising to $2.11 the following year as economic constraints take hold, and the search for cleaner energy continues.

  When compared to its sector, its price-to-earnings ratio is one of the lowest, and below the average of 12.42. Though the third largest of the coal production companies in the United States, it is far smaller than its main competitors, Arch (ACI) and Peabody (BTU). This could give it the agility it will need to succeed in the coming years. Its operating margin of 16.07% is better than Arch, and this is an indicator of a management that has the company cost structure under control. Expect the shares to outperform those of its major rivals through the next 24 months.

Hot Cheap Stocks To Own For 2014: CVS Corporation(CVS)

CVS Caremark Corporation operates as a pharmacy services company in the United States. The company?s Pharmacy Services segment provides a range of pharmacy benefit management services, including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and claims processing; and drug benefits to eligible beneficiaries under the Federal Government?s Medicare Part D program. This segment primarily serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals. As of December 31, 2010, it operated 44 retail specialty pharmacy stores, 18 specialty mail order pharmacies, and 4 mail service pharmacies located in 25 states, Puerto Rico, and the District of Columbia. This segment operates business under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, CarePlus, RxAmerica, Accordant, and TheraCom names. The company?s Retail Pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods through its pharmacy retail stores and online, as well as offers film and photo finishing, and health care services. This segment operated 7,182 retail drugstores located in 41 states, Puerto Rico, and the District of Columbia; and 560 retail health care clinics in 26 states and the District of Columbia under the MinuteClinic name. It has a strategic alliance with Alere, L.L.C. for the management of disease management program offerings that cover chronic diseases, such as asthma, diabetes, congestive heart failure, and coronary artery disease. CVS Caremark Corporation was founded in 1892 and is based in Woonsocket, Rhode Island.

Advisors' Opinion:

• [By Victor Mora]

  CVS Caremark provides valuable health care and pharmacy products and services to many consumers in the United States. The stock has been on a powerful move higher but is now digesting gains from a recent run. Over the last four quarters, earnings and revenue figures have increased for the company, but investors seem to have had mixed feelings about the reports. Relative to its peers and sector, CVS Caremark has been an average performer year-to-date. Look for CVS Caremark to OUTPERFORM.

• [By Holly LaFon] CVS/Caremark is the nation's premier integrated pharmacy services provider, combining one of the nation's leading pharmaceutical services companies with the country's largest pharmacy chain.
  
  Owens had a relatively small holding of 200,000 shares which he purchased in the third quarter of 2011 at about $36 per share. In the fourth quarter, he increased his holding by 50%, adding 100,000 shares at about $37 per share. CVS�� share price has actually increased more than 20% in the last year, and more than 21% in the fourth quarter alone.
  
  Record-setting third-quarter earnings results, announced Nov. 3, 2011, contributed to the rise. Net revenues increased 12.5% to a record $26.7 billion. Revenues in its Pharmacy Services segment rose 25.8% to $14.8 billion, due primarily with the addition of a previously unannounced, long-term contract with Aetna Inc., and its acquisition of the Medicare prescription drug business of Universal American Corp. in the second quarter of 2011.
  
  In the first nine months of 2011, the company also returned over $3 billion to shareholders in the form of dividends and share repurchases.
  
  CVS has been growing over the long term as well. Its revenue per share increased at a 10-year annual rate of 11.5%, and its free cash flow per share increased at a 10-year annual rate of 21.4%. GuruFocus rated CVS Caremark the business predictability rank of 4.5-star. Steven Romick did an extensive analysis of CVS here.
  
  Boston Scientific Corp. (BSX)
  
  Boston Scientific Corporation is a worldwide developer, manufacturer and marketer of minimally invasive medical devices.
  
  Owens bought 9,200,000 shares of Boston Scientific Corp. at about $8.70 per share. In the next three quarters, he bought a total of 12,900,000 more shares at $8, $6.50 and $5.75 per share, respectively. He sold a total of 800,000 shares in the fourth quarter of 2010 and the first quarter of 2011 at about $7 per share. He then bought 3,300,000 shares at about $7 per share in the second q! uarter of 2011, 1,800,000 shares at about $6.50 in the third quarter, and 9,900,000 shares at about $5.50 in the fourth quarter.
  
  Boston Scientific�� revenue over the past decade has gone up and down, most recently decreasing to $7.8 billion in 2010,

Hot Cheap Stocks To Own For 2014: Merck & Company Inc.(MRK)

Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. The company?s Pharmaceutical segment provides human health pharmaceutical products, such as therapeutic and preventive agents for the treatment of human disorders in the areas of bone, respiratory, immunology, dermatology, cardiovascular, diabetes and obesity, infectious diseases, neurosciences and ophthalmology, oncology, vaccines, and women's health and endocrine. This segment also offers human health vaccines, such as preventive pediatric, adolescent, and adult vaccines. Its Animal Health segment discovers, develops, manufactures, and markets animal health products. This segment offers antibiotics, anti-inflammatory products, vaccines, products for the treatment of fertility disorders, and parasiticides for cattle, swine, horses, poultry, dogs, cats, salmons, and fish. The Consumer Care segment develops, manufac tures, and markets over-the-counter, foot care, and sun care products. Its over-the-counter product line includes non-drowsy antihistamines; treatment for occasional constipation; decongestant-free cold/flu medicine for people with high blood pressure; nasal decongestant spray; and treatment for frequent heartburn. This segment?s foot care products comprise topical antifungal, and foot and sneaker odor/wetness products; and sun care products include sun care lotions, sprays and dry oils; and sunburn relief products. The company serves drug wholesalers and retailers, hospitals, government agencies, physicians, physician distributors, veterinarians, animal producers, and managed health care providers, as well as food chain and mass merchandiser outlets in the United States and Canada. Merck & Co., Inc. was founded in 1891 and is headquartered in Whitehouse Station, New Jersey.

Advisors' Opinion:

• [By Holly LaFon] Seven gurus own Merck stock. Three added shares in the fourth quarter, and three sold shares.
  
  Merck & Co. Inc. is a global research-driven pharmaceutical company with a market cap of $117.53 billion. Its shares are trading at around $38.22 with a P/E ratio of 10.2 and P/S ratio of 2.5.
  
  The dividend yield of Merck stocks is 4.4%. It has paid dividends since 1969. Merck has paid the same dividend of $1.52 from 2005 to 2010. In November 2010 and February 2011, it i

Hot Cheap Stocks To Own For 2014: AeroVironment Inc.(AVAV)

AeroVironment, Inc. designs, develops, produces, and supports unmanned aircraft systems (UAS), and efficient energy systems for various industries and governmental agencies. Its UAS provide intelligence, surveillance, and reconnaissance, including real-time tactical reconnaissance, tracking, combat assessment, and geographic data to the small tactical unit or individual war fighter. The UAS wirelessly transmit critical live video and other information generated by their payload of electro-optical or infrared sensors directly to a hand-held ground control system, enabling the operator to view and capture images during the day or at night on a hand-held ground control unit. AeroVironment also provides spare equipment, alternative payload modules, batteries, chargers, repair services, and customer support for the UAS. In addition, the company produces industrial productivity and clean transportation solutions for commercial and government customers, develops potential clean t ransportation solutions, and performs contract engineering services; offers PosiCharge electric vehicle charging systems for industrial electric material handling fleets, electric vehicle charging systems for passenger and fleet vehicles, and power cycling and test systems for developers and manufacturers of plug-in electric and hybrid vehicles, as well as battery packs, electric motors, and fuel cells; and supplies power cycling and test systems to research and development organizations that focus on developing electric propulsion systems, electric generation systems, and electricity storage systems. It supplies its UAS primarily to the organizations within the United States department of defense. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Monrovia, California.

Advisors' Opinion:

• [By Chris Stuart]

  AeroVironment(AVAV) sells unmanned, remote-control military aircraft and rapid-charging battery stations for electric vehicles.

  The stock has fallen due to concerns over U.S. defense budget cuts. According to Benchmark Research, the company should do well because of growth in its electric-vehicle-charging business. "We will see major deployment of electric-vehicle-charging infrastructure in the coming year to support multiple electric-vehicle introductions and the White House's target of 1 million EV by 2015."

  AeroVironment was recently named to a list of stocks by Goldman Sachs that have a 15% probability, or better, of being acquired. Shares of AeroVironment rocketed 20% Wednesday as quarterly earnings exceeded analysts' estimates. While the shares are not quite as attractive compared with when I first ran the screen June 20, they still have upside potential, given TheStreet Ratings $38 price target.

Hot Cheap Stocks To Own For 2014: Local.com Corporation(LOCM)

Local.com Corporation operates as an Internet search advertising company that enables businesses and consumers to find each other and connect locally. Its Owned and Operated business unit manages its flagship online property Local.com and a proprietary network of approximately 20,000 local Websites that reach approximately 15 million monthly unique visitors. The company places various display, performance, and subscription advertisement products on its Local.com and proprietary network. Its Network business unit operates a private label local syndication network of approximately 1,000 U.S. regional media Websites; 80,000 third-party local Websites; and its own organic feed of local businesses plus third-party advertising feeds that focus primarily on local consumers to a distribution network of hundreds of Websites. The company?s Sales and Ad Services business unit provides approximately 45,000 direct monthly subscribers with Web hosting or Web listing products. The compan y was formerly known as Interchange Corporation and changed its name to Local.com Corporation in November 2006. Local.com Corporation was founded in 1999 and is headquarters in Irvine, California.

Hot Cheap Stocks To Own For 2014: DRDGOLD Limited(DROOY)

DRDGOLD Limited engages in the exploration, extraction, processing, and smelting of gold in South Africa. It holds interests in the Blyvoor mine; and the Crown gold surface tailings retreatment facility that reprocesses sand and slimes dumps, as well as involves in the surface retreatment operations. The company was incorporated in 1895 and is based in Roodepoort, South Africa.

Advisors' Opinion:

• [By seekingalpha.com]

  With mining assets in South Africa, the company runs operations from exploration through to smelting.

  Shares are trading at $4.23 at the time of writing, toward the bottom end of their 52-week trading range of $3.96 to $6.23. At the current market price, the company is capitalized at $162.80 million. Earnings per share for the last fiscal year were $1.21, placing the shares on a price to earnings ratio of 3.49. It paid a dividend of $0.06 last year (a yield of 1.40%) which was covered over 20 times by its earnings.

  It has the lowest price-to-earnings ratio of the gold mining stocks, though its share price is being held back by recent employee unrest in the region. There is room for the company to increase its well-covered dividend, and that should be attractive to income investors. With gold prices increasing, and production costs likely to remain stable, DRDGold could be a stock worth investing in for the gearing that the safe haven value of its gold reserves offers to its potential earnings.