OXBT: High-Flying Stock of the Day

 CHARLOTTE, N.C. (Stockpickr) -- Oxygen Biotherapeutics (OXBT), a developer of oxygen-carrying therapeutics, is flying high today on results of a study of levosimendan use in patients undergoing heart surgery that associated the drug with reduced rates of mortality and other adverse outcomes. OXBT has announced that they are in the process of buying the North American rights to levosimendan, a drug that has already been approved in dozens of countries around the world.

At the time of this writing, OXBT is trading at $2.31, up 54% since yesterday's close. Looking at the monthly chart below, one can see that OXBT is trading only about $1.12 higher than its recent 52-week low. Its 52-week high is $22, and the stock traded as high as $64 in February 2012.

Thus, on the basis of the chart alone, it would appear that upside potential is huge, and downside risk is very low.

OXBT has announced that once it has finalized its purchase of rights to levosimendan, it will have exclusive rights to an estimated $600 milion market. The transaction is valued at approximately $4.8 million in stock as of Oct. 18, based on Oxygen Biotherapeutics' issuing an aggregate of approximately 3.4 million shares of its common stock and securities convertible into common stock to Phyxius Pharma's stockholders in a private placement. Upon closing of the transaction, Phyxius Pharma CEO John Kelley is to become CEO of Oxygen Biotherapeutics.

"Upon closing of this transaction, Oxygen Biotherapeutics will be a Company that has a clear path to commercialization with a Phase 3 asset addressing a $600 million market. With Fast Track status and an agreed study protocol under the Special Protocol Assessment (SPA), we expect we are one trial away from approval," said Michael Jebsen, Oxygen Biotherapeutics' interim CEO and CFO. 

It is easy to see why OXBT is today's high-flying stock of the day.

-- Written by Ben Brinneman in Charlotte, N.C.

Trader Ben Brinneman, featured on MarketWatch, Bloomberg and Reuters, resides in Charlotte, N.C., and is the owner of C Squared Trading. Brinneman started his career trading bonds for U.S. Bancorp and was an analyst for a wealth management firm. Brinneman and his team at C Squared Trading have taught hundreds in a one-on-one mentorship setting via Skype or live in Charlotte.

You can follow some of their free trades and tips on Twitter at @csquaredtrading.

 

Can Boeing Continue This Bullish Run?

With shares of Boeing (NYSE:BA) now trading around $104, is BA an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Boeing is an aerospace company. It focuses primarily on engineering, information technology, research and development, test and evaluation, technology strategy development, environmental remediation management and intellectual property management. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital Corporation.

On Saturday, Boeing’s 777 jet crashed in San Francisco, but luckily, the plane had several built-in safety features that helped save lives in the accident. One of the greatest features of the 777 jet is a flame-retardant cabin, and engineering that ensured the plane wouldn't break up too much after the impact. For now, it doesn’t appear as though any mechanical failure caused the crash, which is good news for Boeing after the safety issues that have plagued the company’s other aircrafts this year. As a leading provider of aerospace products and services to large corporations, not to mention the U.S. government, look for Boeing to continue to advance and develop this space and fuel aerial progress.

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T = Technicals on the Stock Chart are Strong

Boeing stock has witnessed a very impressive move towards higher prices over the last few months. The stock is now trading near all-time high price levels, where the stock may pause a bit. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages.

As seen in the daily price chart below, Boeing is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Boeing Options	24.75%	20%	17%

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

	Put IV Skew	Call IV Skew
July Options	Flat	Average
August Options	Flat	Average

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

On the next page, let’s take a look at the earnings and revenue growth rates and what this means for Boeing’s stock.

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q1	2012 Q4	2012 Q3	2012 Q2
Earnings Growth (Y-O-Y)	18.03%	-30.91%	-7.53%	1.60%
Revenue Growth (Y-O-Y)	-2.53%	14.05%	12.87%	20.93%
Earnings Reaction	3.00%	1.27%	-0.15%	2.77%

Boeing has seen mixed earnings and mostly rising revenue figures over the last four quarters. From these numbers, it seems the markets have been pleased with Boeing’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Boeing stock done relative to its peers: Lockheed Martin (NYSE:LMT), Spirit Aerosystems (NYSE:SPR), Northrop Grumman (NYSE:NOC), and sector?

	Boeing	Lockheed Martin	Spirit Aerosystems	Northrop Grumman	Sector
Year-to-Date Return	39.23%	18.28%	32.00%	25.51%	27.56%

Well, it looks like Boeing has been a relative performance leader, year-to-date.

Conclusion

Boeing is an aerospace company that provides aircrafts and related products and services to corporations and governments worldwide. The stock has been on an explosive move higher that has taken it near previous all-time high prices. Over the last four quarters, earnings have been mixed while revenue figures have been mostly on the rise, maintaining investors’ satisfaction with the company. Relative to its peers and sector, Boeing has been a year-to-date performance leader. Look for Boeing to continue to OUTPERFORM.

Zombie Politics: Are Dead People Trying to Buy Our Elections?

5 Best Low Price Stocks To Watch Right Now

Alamy The idea that the dead sometimes vote is nothing new: For a long period of history, the "graveyard vote" was a key demographic in many a crooked campaign. Recently, however, it has come to light that the dead don't just vote -- sometimes, they also donate money to their favorite candidates and parties. And, per the old Republican joke about corpses who cast ballots, dead donors tend to skew Democrat. On Monday, USA Today reported the results of its analysis of Federal Election Commissions reports, which showed that, since January 2009, 32 major deceased donors have contributed almost $586,000 to the political process. $245,176 -- more than 41 percent -- went to the Democratic National Committee, while another $31,203 went to the Obama Victory fund. The rest was split among a wide variety of political causes. It is perfectly legal for dead people to contribute to campaigns, although they're constrained by the same campaign limits as living ones. However, a case that is currently pending in federal appellate hopes to overturn those limits. The donor in question, a deceased Libertarian who used to live in Tennessee, attempted to leave $217,000 to the Libertarian party. If the case is successful, it could vastly change the political donation landscape -- in addition to greatly expanding Ron Paul's target demographic. Check out the full story here. (Just to be clear, dead people voting is in fact a laughably insignificant 'problem' in this country: From the 2000 to 2011 elections, there were a total of 2,068 cases of individual voter fraud, out of 900 million votes cast. Just 10 involved people showing up at the polls claiming to be someone they weren't. So whatever ever else we may have to fear from zombies, they aren't coming to eat our elections.)

7 Painless Ways to Cut Expenses in Retirement

Andy Cross/The Denver Post via Getty Images Those of us who are retired know it's hard to live on a fixed income, especially since low interest rates have squeezed extra income from savings accounts down to a trickle. The alternative is to lower our expenses. No one wants to give up the things they enjoy, whether it's a membership to a fitness club, a trip to the mall or a warm home in winter. But sometimes we're paying for things we don't really use. Here are seven ideas for saving money without feeling any pain: 1. Insurance. Have you ever joked that you're worth more dead than alive? Then maybe you don't need life insurance, especially if your kids are grown up. Also, check the deductibles on your auto and home policies. You can save by increasing your deductible from $250 to $1,000. And if your kids are no longer driving your car, the chances of getting in an accident are diminished. If your car is over five years old, consider going without collision insurance. Since you're no longer commuting, maybe you can sell off an extra car as well. 2. Food. Do you find yourself scraping vegetables into the garbage, or throwing out moldy bags of unidentifiable leftovers from the back of the refrigerator? Approximately 25 percent of the food we purchase goes to waste, according to the U.S. Department of Agriculture. The answer? Serve smaller portions. Store leftovers efficiently and keep them in the front of the icebox. Eat leftovers for lunch, or put leftovers on the menu for dinner. Also, resist the call of bottled water, and turn to the kitchen faucet. 3. College tuition. Scholarships are increasingly difficult to obtain. But one way to save money is to send your children to a state university rather than a private college. According to many experts, there is no advantage to a good, but second-rate private college over a state university when it comes to landing a job or gaining admittance to graduate school. If your children insist on a private education, have them apply to several schools to see which ones will offer them the most money. 4. Vacation. When you're retired, you're flexible. Fly mid-week when air fares are cheaper, and go on vacation during the shoulder season when rates are lower. Many Florida vacation spots offer discounts until the season heats up at Christmas. Take advantage of destinations close to home, and save on airline tickets and car rentals. Use some of the savings to pay for a nicer hotel. Or check out websites offering alternative accommodations, such as Airbnb or Cyber Rentals. And don't forget, you can always go visit the kids. 5. In your community. You already pay taxes to support your library, so instead of buying a book or DVD, go borrow one. Many communities offer adult education classes, ranging from foreign languages to ballroom dancing. Don't hesitate to get a senior discount at the movies or state park, or an America the Beautiful senior pass for national parks. You don't have to be at the office from 9 to 5 every day, so go out to lunch instead of dinner to get the same benefit at a lower cost. Play golf on weekdays instead of weekends for a lower rate. 6. Go green. Those of us who grew up in the 1970s learned how to turn off the lights and dial down the heat. But maybe we forgot during the energy glut of the 1980s and 90s. So remember, sometimes you can open a window instead of turning on the air conditioning. Change your light bulbs to energy-efficient bulbs. And remember, according to government figures, it costs 40 to 50 cents per mile to drive your car. So maybe you can downsize your gas-guzzling SUV to a gas-sipping hybrid. But even with your old jalopy, you can save on gas and wear-and-tear by sticking to the speed limit and batching your trips. 7. Now you're the boss. You used to pay for the premium cable package, because the kids insisted on it. Maybe you don't need that anymore. Downgrade your cellphone service if you don't use the minutes. Cancel your membership to the swim club if you're not using it. Look through your credit card bill. What are you paying for that you no longer use? Now is the time to cancel the charges that are there for your kids, and focus on the activities that are important to you.

Electronic Arts Inc. (EA): Shift In Release Schedule Should Alleviate Risk To FY14 View

Electronic Arts, Inc. (NASDAQ: EA) plans to release Titan Fall slightly earlier than expected, but Sims 4 will be pushed out to fall of 2014. The changes to the release schedule should alleviate risk to fiscal 2014 guidance.

Electronic Arts, or EA, is a global leader in digital interactive entertainment. The company's game franchises are offered as both packaged goods products and online services delivered through Internet-connected consoles, personal computers, mobile phones and tablets. EA has more than 300 million registered players and operates in 75 countries.

Headquartered in Redwood City, California, EA is recognized for blockbuster franchises such as The Sims, Madden NFL, FIFA Soccer, Need for Speed, Battlefield, and Mass Effect.

The company announced that Titan Fall, the debut game from videogame developer Respawn Entertainment, will be landing on store shelves beginning March 11, 2014 exclusively for Xbox One, the all-in-one games and entertainment system from Microsoft, Xbox 360 games and entertainment system and PC.

Titan Fall was previously expected to be released sometime in the June quarter of 2014. The new date for Titan Fall is March 11th in the U.S. and March 13th in Europe. Titan Fall is one of the most anticipated titles currently and has been generating strong buzz for some time.

"We believe this (change in schedule) is being done to take advantage of the open window created by Ubisoft delaying the release of its highly anticipated title Watch Dogs," Sterne Agee analyst Arvind Bhatia said in a client note.

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EA expects the net effect of the changes to its release schedule to be neutral. Although, these changes reduce guidance risk that investors were beginning to factor in due to the slower-than-expected start to FIFA 14.

With EA's recently released key title FIFA 14 starting off slower than expected, investors were! beginning to factor in some risk to fiscal 2014 earnings. The changes in the release schedule announced would reduce that potential risk.

In July, EA guided fiscal 2014 GAAP net revenue of approximately $3.50 billion. Non-GAAP net revenue is expected to be about $4.00 billion. GAAP loss per share is expected to be approximately 98 cents while non-GAAP diluted earnings per share is expected to be approximately $1.20. Wall Street expects earnings of $1.23 a share on revenue of $4.01 billion, according to analysts polled by Thomson Reuters.

"We think EA remains well positioned for the upcoming console cycle and can grow EPS at a 20% CAGR in the foreseeable future. This should be driven by mid single-digit top-line growth combined with 150 bps to 200 bps of operating margin expansion annually for the next several years," Bhatia noted.

With next-generation consoles from Microsoft and Sony as key catalysts, EA is well positioned for a period of sustained growth with an impressive slate of core titles, strong digital growth and focused on cost control. This, in turn, would ultimately lead to a return in top-line growth and continued margin expansion for profitable growth.

EA shares trade at approximately 17 times its consensus 2014 EPS estimate. There are approximately 17.3 million shares short on EA, reflecting 6 percent of its diluted shares outstanding, flat from 17.1 million a year ago and a peak of 27.2 million at the end of January 2013.

"At current valuations and a robust portfolio of content, we believe Electronic Arts is an attractive investment opportunity," BMO Capital Markets analyst Edward Williams wrote in a client note.

Short interest in EA has remained flat over the past three months even with a significant rise in share price as investor confidence in the company's growth prospects solidified with the start of a new console cycle and the company's margin expansion story. Shares of EA have climbed about 98 percent in the last year and traded between $11.80 a! nd $28.13! during the past 52-weeks.

EA is set to release its financial results for the second quarter fiscal year 2014 after the close of market on Tuesday, Oct. 29, 2013. The street expects earnings of 12 cents a share on revenue of $979.06 million. 

Asian Stocks Extend Weekly Drop as Earnings Disappoint Investors

Asian stocks fell, extending the regional gauge's first weekly decline in three weeks, as forecasts from Canon Inc. to Posco disappointed investors.

Posco, South Korea's biggest steelmaker, sank 1.2 percent in Seoul after cutting its 2013 sales forecast. LG Electronics Inc. (066570) lost 3.7 percent after its third-quarter operating profit and sales missed estimates. Canon retreated 1.4 percent in Tokyo as the camera maker trimmed its earnings outlook. AMP Ltd. tumbled 3.1 percent in Sydney after Australia's largest life insurer and pension manager said fourth-quarter operating profit will fall by as much as A$65 million ($62.5 million).

The MSCI Asia Pacific Index sank 0.9 percent to 141.67 as of 1:24 p.m. in Tokyo, extending this week's fall to 1.2 percent. The gauge climbed to a five-month high on Oct. 22 amid speculation the Federal Reserve would delay tapering stimulus, pushing its earnings multiple to 13.8 times estimated profit, according to data compiled by Bloomberg.

"The earnings numbers are not fantastic," Evan Lucas, Melbourne-based market strategist at IG Ltd. said by phone. "Many of the export-driven Japanese companies like Canon had the weakening yen supporting them earlier in the year but that is now stagnating. People are starting to reassess those shares that have had that support."

Of 73 companies in the MSCI Asia Pacific Index that have reported quarterly results this earnings season and for which Bloomberg compiles estimates, 60 percent posted profit that missed expectations.

Regional Gauges

Japan's Topix index today fell 1.9 percent, Australia's S&P/ASX 200 Index rose 0.3 percent and New Zealand's NZX 50 Index advanced 0.6 percent. South Korea's Kospi index dropped 0.8 percent even after data showed the nation's economy expanded more than forecast last quarter. Futures on the Standard & Poor's 500 Index slipped 0.2 percent.

Hong Kong's Hang Seng Index slid 0.5 percent and China's Shanghai Composite declined 1 percent. Singapore's Straits Times Index lost 0.2 percent and Taiwan's Taiex Index retreated 0.9 percent.

Fed policy makers are scheduled to meet Oct. 29-30, when they will evaluate the strength of the recovery with a less complete set of figures than usual due to the 16-day partial government shutdown that caused the suspension of reports and collection of data.

Japanese consumer prices climbed in September from a year earlier, a fourth monthly gain. The Topix surged 40 percent this year through yesterday, the largest rally among 24 developed equity markets tracked by Bloomberg.

Posco lost 1.2 percent to 317,500 won and LG Electronics retreated 3.7 percent to 67,500 won. Canon declined 1.4 percent to 3,085 yen and AMP slumped 3.1 percent to A$4.785. Great Wall Motor Co. sank 6.1 percent to HK$45.50 in Hong Kong after its third-quarter profit missed analysts' estimates.

Among rising shares, Murata Manufacturing Co. gained 2.6 percent to 7,790 yen after net income topped the electronic-component maker's forecasts.

5 Stocks Under $10 to Trade for Breakouts

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

>>5 Hated Earnings Stocks You Should Love

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

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

>>5 Stocks Poised for Breakouts

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

Fuelcell Energy

Fuelcell Energy (FCEL), an integrated fuel cell company, designs, manufactures, sells, installs, operates and services ultra-clean, highly efficient stationary fuel cell power plants for distributed baseload power generation. This stock closed up 1.5% to $1.32 in Tuesday's trading session.

Tuesday's Range: $1.30-$1.35

52-Week Range: $0.83-$1.64

Tuesday's Volume: 2.37 million

Three-Month Average Volume: 1.59 million

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From a technical perspective, FCEL trended modestly higher here right above its 50-day moving average of $1.25 with heavy upside volume. This stock has been uptrending for the last few weeks, with shares moving higher from its low of $1.18 to its intraday high of $1.35 with strong upside volume flows. During that move, shares of FCEL have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of FCEL within range of triggering a big breakout trade. That trade will hit if FCEL manages to take out some near-term overhead resistance levels at $1.35 to $1.41 with high volume.

Traders should now look for long-biased trades in FCEL as long as it's trending above its 50-day at $1.25 or above $1.20 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.59 million shares. If that breakout hits soon, then FCEL will set up to re-test or possibly take out its next major overhead resistance levels at $1.64 to $1.95.

Mecox

Mecox (MCOX) offers a selection of products apparel, accessories and home and healthcare products through its online platform and third party e-commerce Web sites. It also sells products through a physical store network and call centers. This stock closed up 16.5% to $4.58 in Tuesday's trading session.

Tuesday's Range: $3.76-$4.69

52-Week Range: $1.67-$7.88

Tuesday's Volume: 161,000

Three-Month Average Volume: 251,515

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From a technical perspective, MCOX exploded higher here right off its 50-day moving average of $3.92 with lighter-than average volume. This move is quickly pushing shares of MOCX within range of triggering a big breakout trade. That trade will hit if MCOX manages to take out Tuesday's high of $4.69 and then once it clears some more near-term overhead resistance at $4.80 to its gap down day high from August at $5.15 with high volume.

Traders should now look for long-biased trades in MCOX as long as it's trending above its 50-day at $3.92 or above Tuesday's low of $3.76 and then once it sustains a move or close above those breakout levels with volume that hits near or above 251,515 shares. If that breakout hits soon, then MCOX will set up to re-fill some of its previous gap down zone that started at $7.88.

Odyssey Marine Exploration

Odyssey Marine Exploration (OMEX) is engaged in deep-ocean shipwreck and mineral exploration, with expertise in search technology and archaeological recovery operations on deep-ocean shipwrecks throughout the world. This stock closed up 11.4% to $2.93 in Tuesday's trading session.

Tuesday's Range: $2.68-$2.98

52-Week Range: $2.41-$3.70

Thursday's Volume: 2.83 million

Three-Month Average Volume: 726,822

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From a technical perspective, OMEX soared higher here right above some near-term support at $2.58 and back above its 50-day moving average of $2.92 with monster upside volume. This move pushed shares of OMEX into breakout territory, since the stock took out some near-term overhead resistance at $2.83. Shares of OMEX are now moving within range of triggering another big breakout trade. That trade will hit if OMEX manages to take out some near-term overhead resistance levels at $2.99 to $3.16 with high volume.

Traders should now look for long-biased trades in OMEX as long as it's trending above $2.83 or above Tuesday's low of $2.68 and then once it sustains a move or close above those breakout levels with volume that hits near or above 726,822 shares. If that breakout triggers soon, then OMEX will set up to re-test or possibly take out its next major overhead resistance levels at $3.50 to $3.65.

PharmAthene

PharmAthene (PIP) is engaged in the development and commercialization of medical countermeasures against biological and chemical weapons in the U.S. This stock closed up 2.8% to $2.17 in Tuesday's trading session.

Tuesday's Range: $2.10-$2.22

52-Week Range: $0.98-$2.42

Thursday's Volume: 140,000

Three-Month Average Volume: 263,203

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From a technical perspective, PIP trended higher here right off its 50-day moving average of $2.08 with lighter-than-average volume. This move briefly pushed shares of PIP into breakout territory, since the stock took out some near-term overhead resistance at $2.18, before close at $2.17. Shares of PIP are now trending within range of triggering a major breakout trade. That trade will hit if PIP manages to take out some near-term overhead resistance levels at $2.27 to $2.27, and then once it takes out its 52-week high at $2.42 with high volume.

Traders should now look for long-biased trades in PIP as long as it's trending above its 50-day at $2.08 or above more near-term support at $2.06, and then once it sustains a move or close above those breakout levels with volume that hits near or above 263,203 shares. If that breakout triggers soon, then PIP will set up to enter new 52-week-high territory above $2.42, which is bullish technical price action. Some possible upside targets off that breakout are $3 to $3.35.

Xueda Education Group

Xueda Education Group (XUE) is engaged in providing private personalized tutoring services in the PRC. This stock closed up 7.8% to $4.81 in Tuesday's trading session.

Tuesday's Range: $4.52-$4.98

52-Week Range: $2.30-$5

Thursday's Volume: 677,000

Three-Month Average Volume: 102,226

From a technical perspective, XUE spiked sharply higher here and broke out above some near-term overhead resistance at $4.60 with heavy upside volume. This stock has been uptrending strong for the last five months, with shares soaring higher from its low of $2.84 to its recent high of $5. During that uptrend, shares of XUE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of XUE within range of triggering a major breakout trade. That trade will hit if XUE manages to take out its 52-week high at $5 with high volume.

Traders should now look for long-biased trades in XUE as long as it's trending above its 50-day at $4.23 or above more key near-term support at $4 and then once it sustains a move or close above its 52-week high at $5 with volume that hits near or above 102,226 shares. If that breakout triggers soon, then XUE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are its next major overhead resistance levels at $6 to $7.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

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Follow Stockpickr on Twitter and become a fan on Facebook.

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

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Can Merck Regain Its Biosimilar Footing?

Merck (NYSE: MRK  ) hasn't done a bad job fighting the patent cliff in recent years. When it comes to developing generic biologic drugs, or biosimilars, the company finds itself in a much less envious position. Some of the problem can to be owed to the fact that Merck didn't quite know where to start. It seemed to be forging ahead without a clear plan. The company established a subsidiary called Merck BioVentures to focus on biosimilar development only to absorb it back into larger operations. That forced high profile hires such as Mike Kamarck to leave the company, led to the cancellation of at least one therapy, and left shareholders questioning what the heck Merck was doing.

Before you write off Merck's biosimilar ambitions, you should know of a last-ditch effort to right the ship. A partnership announced earlier this year with Samsung Bioepis, a joint venture between Samsung and Biogen Idec (NASDAQ: BIIB  ) , aims to resuscitate internal goals. Fool contributor Maxx Chatsko explains the checkered past, the new beginning, and what it could mean for the future of the biosimilar development at the company.

Top Medical Companies To Buy For 2014

One of the best parts of owning big pharma stocks is their attractive dividends, but smart investors know the importance of diversifying -- seeking high-yielding stocks from multiple industries. The Motley Fool's special free report "Secure Your Future With 9 Rock-Solid Dividend Stocks" outlines the Fool's favorite dependable dividend-paying stocks across all sectors. Grab your free copy by clicking here.

This Week's 5 Dumbest Stock Moves

Stupidity is contagious. It gets us all from time to time. Even respectable companies can catch it. As I do every week, let's take a look at five dumb financial events this week that may make your head spin.

1. Another Zynga zinger
Zynga (NASDAQ: ZNGA  ) keeps playing SmallVille.

The social gaming giant behind FarmVille and Words With Friends continues to lose gamers, and now it's cutting lose some more of its game makers.

Zynga revealed that it will be letting go of 520 employees -- or roughly 18% of its workforce -- in the coming weeks. The move will shave as much as $80 million in annualized overhead at the company, but what will it do to shore up business if morale is on the wane?

Last year, it was losing executives, as its cascading share price made the once-juicy stock options less lucrative. Now, it's showing the loyal folks that stuck around during the managerial exodus the door.

It's not the way you play the game if you want to win.

2. Panned aura
Shares of Pandora (NYSE: P  ) slumped 11% on Monday after reports surfaced that Apple is one step closer to rolling out its iRadio streaming service.

There's just one major label that has yet to sign off on iRadio.

It's a broken record at this point. We've been hearing about iRadio's rollout for months, and it seems as if Pandora always takes a hit on the news. It doesn't make sense. iRadio will likely be a premium music service, yet all but 2.5 million of Pandora's more than 70 million active listeners are free users.

Other tech giants have also rolled out music streaming services, and Pandora just keeps on growing. Have we forgotten the rise and fall of iTunes Ping as a short-lived social music experiment? Are we ignoring the inability of iTunes Match to gain traction as a cloud-based digital music locker?

There may very well come a time for a shakeout of the now-crowded music streaming market, but Pandora's unlikely to be a casualty. Monday's sell-off was dumb.

3. Who's your caddy?
Callaway Golf (NYSE: ELY  ) may have ushered in a new era in golfing with its oversized Big Bertha drivers, but these days, the golf gear maker keeps landing in the rough.

Wedbush downgraded Callaway Golf -- from "outperform" to "neutral" -- this week.

It's easy to see why the market has soured on Callaway. Analysts see another loss this year on a slight decline in revenue. This is a stark contrast to other luxury goods retailers that are thriving these days. If high-end handbags and jewelry items are thriving, and this premium club maker is getting clubbed, it has to be a problem with the company itself.

4. Fizzy lifting drinks are great until you see the blades
Shares of SodaStream (NASDAQ: SODA  ) opened sharply higher on Thursday after sources told Israel's Calcalist that PepsiCo had submitted a $2-billion buyout offer.

Top 5 Small Cap Stocks To Invest In Right Now

Now, the Hebrew daily business publication is certainly credible. This was the same source that broke the news last month about Israel's Waze being in play. That continues to be the case today. However, this story didn't make sense. SodaStream may be a great acquisition target, but it's not going to come from a company that has far more to lose than gain in a buyout.

Pepsi would be validating SodaStream's model with this purchase at the expense of its far more lucrative canned and bottled carbonated soda business. PepsiCo would be ruffling the feathers of its bottlers, and betraying its recent history of buying companies that move it away from sugary soft drinks.

SodaStream's heavy short interest makes it an easy candidate for a short squeeze, but we deserve more feasible buyout rumors moving stocks higher.

5. There's no such thing as a Quiksilver lining
It's not a surprise when retailers that are out of favor do poorly, but it is a shock when the good ones prove mortal.

Analysts had high hopes for Quiksilver (NYSE: ZQK  ) heading into Thursday afternoon's quarterly report. They saw the retailer of extreme sports apparel posting a small profit on a modest uptick in sales.

Well, it missed on both fronts. Quiksilver actually posted a widening deficit on a startling 7% drop in revenue. It's updating its guidance accordingly. Even though Quiksilver's weakness stemmed from its international operations -- stateside growth was positive -- it's still not pretty when the good ones let you down.

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Tesla’s Musk buys 007’s sub to make it real

Tesla Motors CEO Elon Musk has bought the Lotus submarine car prop from a 1970s James Bond movie and plans to convert it into a real car than can convert into a sub -- with the benefit of a Tesla electric powerplant.

Musk, eclectic billionaire who is chief executive of both the electric car company and rocket maker SpaceX, confirms he bought the car at an auction last month.

"It was amazing as a little kid in South Africa to watch James Bond in The Spy Who Loved Me

drive his Lotus Esprit off a pier, press a button and have it transform into a submarine underwater," says Musk in an email response to a query from USA TODAY. "I was disappointed to learn that it can't actually transform. What I'm going to do is upgrade it with a Tesla electric powertrain and try to make it transform for real."

The movie prop -- a car body that could be driven by a stunt man with scuba gear -- sold at RM's auction in London Sept. 9 for $989,000.

Car site Jalopnik identified Musk today as the "mystery buyer."

Musk not only confirmed to USA TODAY that he is the buyer, but disclosed his plans to make the sub real.

In the movie, Roger Moore, who starred as 007 in several Bond movies, is seen driving an Lotus Esprit sports car along a road when it is attacked by a helicopter. Despite concerns of his brunette beauty in the passenger seat, Moore drives the car off a pier.

The car's wheels then retract, fins extend and the car becomes a submarine. Moore then sails along, dispatching the helicopter with a missile. (Here is the whole sequence from the movie, which took all of 1 minute, 26 seconds.)

The Lotus was one of several modified for the movie. One, for instance, had the job only of showing the wheels retracting, RM Auctions says. Another was used only to show the launching of the surface-to-air missile.

Beyond his brief comment, it's unclear how far Musk intends to take his conversion. Will he make it dry inside like a true submarine, like the Lotus in the movie, or ma! ke it so it continues to be driven only by those with scuba breathing gear.

Top 5 Insurance Stocks To Watch For 2014

It all started with T-Mobile US' (NYSE: TMUS) JUMP plan which allowed consumers to upgrade their smartphones sooner than the industry standard of every two years.

It didn�� take long before AT&T (NYSE: VOD) owned-Verizon Wireless, which showed up with a program called Edge.

Related: Verizon and AT&T Unveiling Plans to Compete with T-Mobile 'Jump' Plan

So, now there are three carriers offering three plans that allow you to upgrade as soon as every six months to a year after you get a new phone.

The question is: Should you?

The Denver Post took a look at all three programs and concluded that it depends. Noting that manufacturers like Apple (NASDAQ: AAPL) and Samsung (OTC: SSNLF) come out with new models at least once a year, clearly the new plans are aimed at consumers who want the latest phone at the first possible moment.

As the Denver Post also pointed out, however, even with the new plans, having the latest and greatest comes at a price ��often considerably more than you would pay by keeping a phone for the more customary two years.

AT&T Next

With AT&T�� Next program, you have to pay at least 60 percent of your existing phone�� full retail price before you can switch. Payments are spread over 20 months with trade-ins available after 12 payments.

Using a Samsung Galaxy S4 for illustration, after 12 payments of $32 on the Next plan, you will have shelled out $384. By going the traditional subsidized route, AT&T requires $200 upfront with no payments. Early termination (at 12 months) will cost you $205. Total out of pocket by then will have been $405, but you own the phone, which you can sell to more than make up the $21 difference and quite likely cover part or all of the costs of your next subsidized phone.

Verizon Edge

The Verizon plan allows you to upgrade after six months ��as opposed to a year under the other plans ��but as the Denver Post points out, why would anyone want to pay $! 325 (50 percent of Verizon�� $650 cost of a new Samsung S4) for a phone you only have for six months?

NBC News noted that Verizon spread the payments over 24 months instead of AT&T�� 20, requiring only that you pay 50 percent of the cost before upgrading. After 12 monthly payments of a little more than $27, you will have paid the $325 and can then trade in your (now) old Samsung S4 for a new model and start all over again.

T-Mobile JUMP

T-Mobile is unlike both Verizon and AT&T because it did away with contracts and subsidized phones so that option isn�� available. T-Mobile contracts tend to be less expensive than either AT&T or Verizon, although AT&T touts the fact that its LTE service is the fastest available and Verizon points out that it is considered the most reliable network everywhere.

Related: Verizon Slips to Second on LTE Speed, Maintains a Lead on Reliability

T-Mobile requires an upfront payment and a monthly fee for the smartphone as well as a $10 ��rogram charge��(which also includes insurance that normally runs $8 a month).

At the end of a year under T-Mobile you would have $510 for your Samsung S4. While this all seems to make T-Mobile the ��dd man out��price-wise, the Denver Post points to T-Mobile�� exceptionally low wireless service plan prices ��much lower than those of AT&T or Verizon.

Adding it All Up

If you are generally happy with your cellphone and don�� feel the need (or desire) to upgrade frequently, the new frequent upgrade plans are probably not for you. All of them will end up costing you more if you don�� upgrade at least once a year and you could end up literally paying twice for your phone if you keep it long enough.

According to USA Today, if you did upgrade once a year and go with AT&T, you would pay almost twice what you would pay for a phone on a subsidized plan.

With Verizon, you would only have to pay half the retail cost (versus AT&T�� ! 60 percen! t), but still more than what you would pay during the same period for a subsidized phone.

T-Mobile, USA Today, notes has the extra charges, but they are mitigated by cheaper wireless plans, making T-Mobile your best bet, cost-wise.

This, of course, doesn�� take into account AT&T�� faster service or Verizon�� reputation for reliability.

Top 5 Insurance Stocks To Watch For 2014: Principal Financial Group Inc(PFG)

Principal Financial Group, Inc. provides retirement savings, investment, and insurance products and services worldwide. The company?s Retirement and Investor Services segment provides retirement savings and related investment products and services, including a portfolio of asset accumulation products and services primarily to small and medium-sized businesses and individuals in the United States. This segment offers products and services to businesses for defined contribution pension plans, including 401(k) and 403(b) plans, defined benefit pension plans, nonqualified executive benefit plans, and employee stock ownership plan consulting services; and annuities, mutual funds, and bank products and services to the employees of its business customers and other individuals. Principal Financial Group?s Principal Global Investors segment offers a range of equity, fixed income, and real estate investments, as well as specialized overlay and advisory services to institutional inve stors. The company?s Principal International segment offers retirement products and services, annuities, mutual funds, institutional asset management, and life insurance accumulation products in Brazil, Chile, China, Hong Kong SAR, India, Indonesia, Malaysia, Mexico, Singapore, and Thailand. Principal Financial Group?s U.S. Insurance Solutions segment offers individual life insurance, as well as specialty benefits in the United States. Its individual life insurance products include universal and variable universal life insurance and traditional life insurance; and specialty benefit products comprise group dental and vision insurance, individual and group disability insurance, and group life insurance, as well as fee-for-service claims administration and wellness services. The company was founded in 1879 and is based in Des Moines, Iowa.

Top 5 Insurance Stocks To Watch For 2014: Genworth Financial Inc (GNW)

Genworth Financial, Inc., a financial security company, provides insurance, wealth management, investment, and financial solutions in the United States and internationally. The company offers various insurance and fixed annuity products, including life and long-term care insurance products; payment protection insurance products for consumers primarily to meet specified payment obligations; and wealth management products, such as managed account programs with advisor support and financial planning services. It also provides mortgage insurance products and related services to insure prime-based, individually underwritten residential mortgage loans or flow mortgage insurance; and mortgage insurance on a structured or bulk basis, as well as offers services, analytical tools, and technology that enable lenders to operate and manage risk. In addition, the company provides institutional products consisting of funding agreements, funding agreements backing notes, and guaranteed in vestment contracts. Genworth Financial, Inc. distributes its products and services through financial intermediaries, advisors, independent distributors, affinity groups, and sales specialists. The company was founded in 2003 and is headquartered in Richmond, Virginia.

Advisors' Opinion:

• [By Sally Jones]

  
  Genworth Financial Inc. (GNW): Sold Out

  Up 142% over 12 months, Genworth Financial has a market cap of $6.26 billion and trades with a P/E of 14.10. The current share price is $12.68.

• [By Matt Koppenheffer and David Hanson]

  On its road to recovery since the financial crisis, shares of Genworth Financial (NYSE: GNW  ) have more than doubled in value over the past year, and those gains continued this week. Are the good times set to keep rolling?

Top 5 Gold Companies To Invest In Right Now: Old Republic International Corporation(ORI)

Old Republic International Corporation, through its subsidiaries, provides various insurance and mortgage guaranty products in North America. The company operates in three segments: General Insurance, Mortgage Guaranty, and Title Insurance. The General Insurance segment provides liability insurance coverages to businesses, government, and other institutions in commercial construction, forest products, energy, general manufacturing, and financial services industries; and transportation, including trucking and general aviation industries. It provides various insurance products, such as automobile extended warranty, aviation, commercial automobile insurance, general liability, home warranty, inland marine, travel accident, and workers? compensation, as well as liability coverage for claims arising from the acts of owners or employees, and protection for the physical assets of businesses. This segment also offers financial indemnity products, such as consumer credit indemnity , errors and omissions/directors and officers, guaranteed asset protection, and surety, as well as bonds that cover the exposures for losses of monies, or debt and equity securities due to acts of employee dishonesty. The Mortgage Guaranty segment insures first mortgage loans, primarily on residential properties incorporating one-to-four family dwelling units to mortgage bankers, brokers, commercial banks, and savings institutions. The Title Insurance segment provides lenders' and owners' title insurance policies to real estate purchasers and investors based upon searches of the public records. It also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and services related to real estate transfers and loan transactions. Old Republic International Corporation markets its products directly, as well as through insurance agents and brokers. The company was founded in 1887 and is based in Chi cago, Illinois.

Advisors' Opinion:

• [By Fredrik Arnold]

  Ten Champion dogs that promised the biggest dividend yields into July included firms representing five of nine market sectors. The top stocks were three of five from the financial sector: Universal Health Realty Trust (UHT); Mercury General Corp. (MCY); Old Republic Int'l (ORI). The other two financial firms, HCP Inc., and United Bankshares Inc. (UBSI), placed sixth and eighth.

• [By Holly LaFon]

  Prem Watsa is renowned for his long track record of outstanding returns using Buffett-style value investing through his worldwide insurance and reinsurance company, Toronto-based Fairfax Financial Holdings. His five-year cumulative is 176.4%, compared to 12.2% for the S&P 500. Most recently, he made headlines for making a large contrarian bet on Research In Motion (RIMM) and joining its board in his first activist investing foray. In the fourth quarter, he added to this position. He also added to his positions in Citigroup Inc. (C), Old Republic Corp. (ORI) and Johnson & Johnson (JNJ) and dramatically reduced one of his largest holdings, Dell (DELL). As a Ben Graham devotee, Watsa looks past short-term fluctuations in price to the underlying strength of a business. His stance on the economy, as of September and October 2011, was that he believed the U.S. was showing Depression-level interest rates and deficits, but he still liked some stocks and would hedge his exposure, he told CFA Institute Magazine.

Top 5 Insurance Stocks To Watch For 2014: Cigna Corp (CI)

Cigna Corporation (Cigna), incorporated on November 3, 1981, is a holding company. Cigna is a global health service company, with insurance subsidiaries that are providers of medical, dental, disability, life and accident insurance and related products and services. In the United States, these products and services are offered through employers and other groups, and in selected international markets, Cigna offers supplemental health, life and accident insurance products and international health care coverage and services to businesses, governmental and non-governmental organizations and individuals. The Company also has certain run-off operations, including a Run-off Reinsurance segment. Cigna�� revenues are derived from premiums, fees, mail order pharmacy, other revenues and investment income. Cigna operates in five segments: Health Care, Disability and Life, International, Run-off Reinsurance, and Other Operations, including Corporate-owned Life Insurance. On January 31, 2012, Cigna acquired HealthSpring, Inc. On November 30, 2011, the Company acquired FirstAssist Group Holdings Limited. In August 2012, the Company acquired Great American Supplemental Benefits from American Financial Group, Inc. In January 2013, the Company acquired select Arcadian and Humana Medicare Advantage plans in Arkansas, Oklahoma and Texas. In September 2013, Cigna Corporation completed its acquisition of Alegis Care, a portfolio company of Triton Pacific Capital Partners. Effective September 3, 2013, Cigna Corp acquired Home Physicians Management LLC.

Health Care

Cigna�� Health Care segment (Cigna HealthCare) offers insured and self-insured medical, dental, behavioral health, vision, and prescription drug benefit plans, health advocacy programs and other products and services that may be integrated to provide health care benefit programs. Cigna HealthCare companies offer these products and services in all 50 states, the District of Columbia and the United States Virgin Islands. Cigna offers a ! range of products and services to employers and other groups that sponsor group health plans. With the exception of Health Maintenance Organization (HMO), Medicare, Voluntary and stop loss products, each of Cigna HealthCare�� products is offered with alternative funding options. Cigna may sell multiple products under the same funding arrangement to the same employer. Approximately 85% of the Company�� medical customers are enrolled in self-insured plans, with the remainder split between guaranteed cost and experience-rated insured plans. Approximately 90% of its medical customers are enrolled in self-insured and experience-rated plans. Cigna also offers guaranteed cost medical and dental insurance to individuals. Cigna HealthCare offers a product line of indemnity managed care benefit plans on an insured (guaranteed cost or experience-rated) or self-insured basis. The Network, Network Open Access, and Open Access Plus In-Network products cover only those services provided by Cigna HealthCare participating health care professionals (in-network) and emergency services provided by non-participating health care professionals (out-of-network). The Network point of service (POS), Network POS Open Access and Open Access Plus plans (OAP) cover health care services provided by participating, and non-participating health care professionals.

Cigna HealthCare offers a Preferred Provider Plans (PPO) product line that features a national network. Like Network and Open Access Plus Plans, the PPO product line is offered on an insured (guaranteed cost or experience-rated) or self-insured basis. Cigna HealthCare offers the Cigna Choice Fund suite of products, including Health Reimbursement Accounts (HRA), Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA). Cigna HealthCare offers stop loss insurance coverage for self-insured plans. This stop loss coverage reimburses the plan for claims in excess of a predetermined amount, either for individuals (specific) or the entire group (aggregate), ! or both. ! Cigna HealthCare provides Taft-Hartley trusts and other entities access to its national provider network and provides claim re-pricing and other services. Cigna HealthCare�� voluntary medical products are offered to employers with 51 or more eligible employees. As a result of the acquisition of HealthSpring, Cigna operates Medicare Advantage coordinated care plans in 11 states and the District of Columbia. Under the Medicare program, Medicare-eligible beneficiaries may receive health care benefits, including prescription drugs, through a managed care health plan, such as the Company�� coordinated care plans, and The Centers for Medicare and Medicaid Services reimburse the Company pursuant to a risk adjustment payment methodology.

Cigna�� Medicare Part D prescription drug program, Cigna Medicare Rx, provides a number of plan options, as well as service and information support to Medicare and Medicaid eligible customers. Cigna Medicare Rx is available in all 50 states and the District of Columbia. Cigna HealthCare offers medical management, disease management, and other health advocacy services to employers and other plan sponsors. These services are offered to customers covered under Cigna HealthCare administered plans, as well as individuals covered under plans insured and/or administered by competing insurers/third-party administrators. Cigna�� onsite services include more than 75 health centers and the annual administration of more than 400,000 biometric screenings, as well as approximately 2,200 wellness seminars each year. As a result of the acquisition of HealthSpring, Cigna operates three LivingWell Health Centers, where Medicare customers can receive care from physicians, nurse practitioners, nurses, pharmacists, and nurses educators. Cigna arranges for behavioral health care services for customers through its network of participating behavioral health care professionals. Cigna offers behavioral health care case management services, employee assistance programs (EAP), and wor! k/life pr! ograms to employers, Government entities and other groups sponsoring health benefit plans. As of December 31, 2011, Cigna�� behavioral national network had approximately 108,000 access points to psychiatrists, psychologists and clinical social workers and approximately 9,000 facilities and clinics.

Cigna Pharmacy Management offers prescription drug plans to its insured and self-funded customers both in conjunction with its medical products and on a stand-alone basis. With a network of over 62,000 contracted pharmacies, Cigna Pharmacy Management is a pharmacy benefits manager (PBM) offering clinical integration programs, specialty pharmacy solutions and home delivery of prescription medicines. Cigna�� specialty pharmacy outcome management program, TheraCare, manages specialty conditions. TheraCare is coordinated with other Cigna health advocacy programs and all data is captured for analysis and reporting. Cigna Dental Health offers a variety of dental care products, including dental health maintenance organization plans (Dental HMO), dental preferred provider organization (DPPO) plans, dental exclusive provider organization plans, traditional dental indemnity plans and a dental discount program. As of December 31, 2011, Cigna Dental Health customers totaled approximately 10.9 million. Managed dental care products are offered in 38 states for Dental HMO and 43 states and the District of Columbia for Dental PPO through a network of independent health care professionals that have contracted with Cigna Dental Health to provide dental services. Cigna Dental Health customers access care from the dental PPO network in the United States and one of the dental HMO networks in the United States, with approximately 235,500 DPPO-contracted access points (approximately 92,000 health care professionals) and approximately 58,000 dental HMO-contracted access points (approximately 16,500 health care professionals).

Disability and Life

Cigna�� Disability and Life segment (Cign! a Disabil! ity and Life) provides insurance products and their related services, such as group long-term and short-term disability insurance, group life insurance and accident and specialty insurance. These products and services are provided by subsidiaries of Cigna Corporation. Cigna Disability and Life markets products in all 50 states, the District of Columbia, Puerto Rico, the United States Virgin Islands and Canada. Cigna Disability and Life also provides assistance to employees in returning to work and assistance to their employers in managing the cost of employee disability. Cigna Disability and Life offers personal accident insurance coverage, which consists primarily of accidental death and dismemberment and travel accident insurance to employers. Group accident insurance may be employer-paid or employee-paid. Cigna Disability and Life also offers specialty insurance services that consist primarily of disability and life, accident, and hospital indemnity products to professional or trade associations and financial institutions.

International

CIGNA�� International segment (CIGNA International) offers supplemental health, life and accident insurance products, as well as international health care products and services. These products and services are provided by subsidiaries of Cigna Corporation, including foreign operating entities. Cigna International provides employers, affinity groups and individuals with local and global health care and related financial protection programs. Supplemental health products provide a specified payment for a range of health risks and include personal accident, accidental death, critical illness, hospitalization, travel, dental, cancer and other dread disease coverages. Term life, as well as variable universal life insurance and other savings products are also included in the product portfolio. Cigna International�� supplemental health, life and accident insurance products are offered in South Korea, Taiwan, Indonesia, Hong Kong, the European Un! ion, Chin! a, New Zealand, Thailand and Turkey. In China, Cigna International owns a 50% interest in a joint venture through, which its products and services are offered. Cigna International�� health care businesses primarily consist of products and services to meet the needs of local and multinational companies and organizations and their local and globally mobile employees and dependents. These products and services include insurance and administrative services for medical, dental, vision, life, accidental death and dismemberment, and disability risks. In addition, Cigna International�� health care businesses include products and services, which are primarily provided through group benefits programs to employees of businesses and other organizations in the United Kingdom and Spain. These products and services include medical indemnity insurance coverage, with some offerings having managed care or administrative service aspects.

Run-off Reinsurance

Cigna�� reinsurance segment reinsured guaranteed minimum death benefits (GMDB) (also known as variable annuity death benefits (VADBe)), under certain variable annuities issued by other insurance companies. These variable annuities are investments in mutual funds combined with a death benefit. The Company purchased retrocessional protection that covers approximately 5% of the assumed risks. The Company also maintains a dynamic hedge program. Cigna also reinsured guaranteed minimum income benefits (GMIB) under certain variable annuities issued by other insurance companies. These variable annuities are investments in mutual funds combined with minimum income and death benefits. These products under Cigna�� Run-off Reinsurance segment were sold principally in North America and Europe through a sales force and through intermediaries.

Other Operations

The principal products of the Corporate-owned Life Insurance (COLI) business are permanent insurance contracts sold to corporations to provide coverage on the lives ! of certai! n employees for the purpose of funding employer-paid future benefit obligations. The principal services provided by the COLI business are issuance and administration of the insurance policies. COLI policies provide a death benefit for which Cigna collects fees to cover mortality risk. COLI policies also allow policy owners to borrow against a portion of their cash surrender value.

Advisors' Opinion:

• [By Sean Williams]

  On top of being a concern for the government, staffing and education are a big concern for our nation's largest insurers, which have angled their growth toward adding on the roughly 16 million low-income earners who will now qualify for Medicaid. WellPoint (NYSE: WLP  ) purchased Amerigroup for $4.5 billion, CIGNA (NYSE: CI  ) ponied up $3.8 billion for Healthspring, and Aetna (NYSE: AET  ) is buying Coventry Health Care�for $5.7 billion, all with the purpose of locking up Medicaid-based members and the government money that comes along with them. If the education side of Obamacare fails to reach these currently uninsured individuals who could qualify for this subsidized health care, these three companies are going to be negatively affected.

• [By Keith Speights]

  Anthem, which is owned by WellPoint (NYSE: WLP  ) , for example, required prior authorizations only 2.14% of the time. Cigna (NYSE: CI  ) and Aetna (NYSE: AET  ) have higher frequencies -- 4.74% and 5.42%, respectively. Humana (NYSE: HUM  ) is even higher, but still in the single digits with a 8.42% prior authorization rate. Of the publicly traded insurers, only UnitedHealth Group (NYSE: UNH  ) requires prior authorizations more than 10% of the time, with a rate of 12.43%.

Top 5 Insurance Stocks To Watch For 2014: Iamgold Corporation(IAG)

IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Tom Stoukas]

  Air France led airlines lower, falling 4 percent to 7.30 euros. International Consolidated Airlines Group SA (IAG) lost 1.9 percent to 270.7 pence while Deutsche Lufthansa AG slid 2.1 percent to 15.75 euros.

• [By Matt DiLallo]

  IAMGOLD (NYSE: IAG  )
  Canadian gold miner IAMGOLD pays a semiannual dividend of $0.125 per share, which equates to a current yield of about 4.45%. As the company's name would imply, its revenues are generated by its gold-mining operations. Currently, the company has six gold mines across three continents as well as several potential projects in the works. The company's current priorities given the slumping gold market include cash preservation, cost reduction, and disciplined capital allocation. While the dividend looks safe for now, given the company's stated policy of not jeopardizing is strong balance sheet, it could be reduced if gold prices fall further. �

Apple invites go out for Oct 22 event in San Fr…

Apple sent out invitations Tuesday to an event on Oct. 22 in San Francisco, where the tech giant is expected to unveil new versions of its dominant iPad tablet computers.

"We still have a lot to cover," Apple said in the invite for the event, which will take place at the Yerba Buena Center for the Arts Theater.

Apple has been under pressure from investors to release new gadgets to prop up its sagging growth rate.

The company's recent iPhone launch, in which it released two new versions for the first time, generated strong demand globally.

However, the cheaper model, the iPhone 5c, was deemed not cheap enough by Wall Street, which was hoping that Apple would release a phone more suited to emerging market customers with less money to spend.

On Oct. 22, Apple is expected to unveiled a new, full-sized iPad and an upgraded version of its iPad mini, ahead of the crucial holiday shopping season. The latter will likely get the crisper "Retina" that is already on the bigger tablets.

Apple may also release details of its new OS X Mavericks operating system and refresh some of its Mac computers, which will likely run the new OS.

"While [CEO] Tim Cook has said to expect an amazing year, the reality is that we've just seen iterative refreshes," said Colin Gillis, an analyst at BGC Partners. "This doesn't necessarily propel the stock to the heights it was once at."

Apple shares rose almost 1% to trade above $500 on Tuesday afternoon. However, the stock traded above $700 last year.

Gillis expects upgraded iPads with the same pricing model and a new Retina screen for the iPad mini.

"While this is happening, tablet share for Apple continues to drop because of decent offerings from Amazon and Google at much lower price points," he said.

Apple often hints at what new products might entail in its invitations. The latest hint — "We still have a lot to cover" — probably doesn't mean the company will release iPads in different sizes, Gillis said.

"I th! ink it means the covers are going to be re-designed," the analyst said. "This is iteration again."

Still, demand will likely be strong for Apple's new iPads.

A recent survey of customers waiting to buy the high-end iPhone 5s, by Piper Jaffray analyst Gene Munster, found that 70% already owned in iPad. And of those, half expected to upgrade their iPad over the next year.

Of the iPhone 5s customers who did not own an iPad already, 38% said they planned to buy a tablet from Apple in the next year. That was up from a previous survey Munster conducted when the iPhone 5 was launched.

Ram’s diesel pickup named ‘Truck of Texas’

The diesel version of the Ram 1500 pickup has been crowned the Truck of Texas by the Texas Auto Writers Association.

It was the second year that the Ram won. But this time, it had a diesel engine.

That's a big deal if you're automaker hawking pickups. Texas is the top market for pickups and the 'makers spend a lot of time trying to get attention for this award. Judging took place Friday and Saturday at the 23rd Truck Rodeo, where trucks are tested on and off road and for trailer-pulling prowess.

As usual, the pickup portion pitted Ram against Ford F-150, Chevy Silverado and the San Antonio-made Toyota Tundra. Interestingly, neither Silvarado or Tundra won even though they both sported new trucks this year.

Though the Ram truck itself isn't new for 2014, the powertrain is: the first new diesel engine in a light-duty truck in years.

Here's a full list of the auto writers' winners:

•Truck of Texas: Ram 1500 (diesel)

•SUV of Texas: Jeep Grand Cherokee (diesel)

•Crossover of Texas: Hyundai Santa Fe

•Truck line of Texas: Ram

•Heavy duty pickup truck: 2014 Ram 2500 Heavy Duty Longhorn

•Best commercial vehicle: 2014 Ram Promaster Cargo

•Luxury pickup truck: 2014 Ram 1500 Laramie Longhorn

Top Financial Stocks To Own Right Now

•Off-road pickup: 2014 Ford F-150 SVT Raptor (fifth year in a row)

•Full-size pickup: 2015 Ram 1500

•Midsize pickup: 2013 Nissan Frontier PRO4X

•Best technology: Ram Five-link Coil Rear suspension.

•Best connectivity: Chrysler Group's Uconnect Acccess via Mobile

•Best powertrain: Ram/Jeep 3.0-liter EcoDiesel V-6

•Off-road utility vehicle: 2014 Jeep Wrangler

•Full-size luxury SUV: 2013 Land Rover Range Rover

•Mid-size luxury SUV: 2014 Jeep Grand Cherokee Summit Diesel 4x4

•Compact luxury SUV: 2013 GMC Terrain Denali AWD

•Full-si! ze SUV: 2014 Dodge Durango (sole entry in category)

•Mid-size SUV: 2014 Jeep Grand Cherokee Limited Diesel

•Compact SUV: 2014 Jeep Cherokee

•Full-size CUV: 2014 Nissan Pathfinder SL 4x4

•Mid-size CUV: 2013 Hyundai Santa Fe

Compact CUV: 2013 Nissan Juke (sole entry in category)

Luxury CUV: 2014 Acura MDX Advance

My K.I.S.S. Dividend Portfolio 3rd Quarter Update

Managing a portfolio is all about choices. Once you decide what investing philosophy you are going to use (in my case it is dividend growth investing (DGI)), you have to select your stocks or bonds, decide your sector allocation, decide how you will weigh the investments in your portfolio, etc. And it is a never ending process. As dividends are collected and as new money is deposited into your account you have to decide how to allocate it. That is what I had to deal with in the past week as I prepared to do my quarterly portfolio update. My previous portfolio update, published in July, can be found here.

With this portfolio I am trying to demonstrate that by using relatively simple techniques, and spending a relatively small amount of time, someone can manage their own portfolio and still get acceptable returns. To try to take emotion out of my investment decisions I have set up rules for myself as to which stocks to buy, which to sell, and how to allocate dividends and new deposits. My screening criteria for buying and selling stocks will be discussed below, but my reinvestment of dividends has been based on valuation. Specifically, I use the Percentage Above Average Yield (PAAY) to determine which stocks will get the reinvestments and the new deposits.

I discussed PAAY in detail in this article, but briefly my theory is that the stocks that are the most above their usual yield are the most undervalued stocks, and therefore should have more money put into them. This is how I did my quarterly updates earlier in the year, and I was happy with the results. But as I reviewed my portfolio at the end of this past quarter I noticed some things. First of all the total yield of my portfolio was still not where I wanted it to be. I have been targeting a yield of 4%, but I was still only around 3.4%. I wanted to get that higher. Secondly, due previous reinvestments, and due to price appreciation of certain stocks, my portfolio had become relatively unbalanced. None of my stocks made up a rid! iculously large portion of my portfolio, but where-as some stocks made up about 2.5% of the portfolio, others made up only about 1.5%. I preferred to keep the positions a little more closely aligned than they were.

When I looked at the stocks in my portfolio with the highest PAAY most of them were relatively low yielding stocks. If I bought more of them it would not have helped my portfolio yield. In fact it would have dropped it even more. And as I looked at the balance of my portfolio many of the smaller position stocks were some of the higher yielding ones. So if I abandoned PAAY for this particular update, and simply brought some of the higher yielding stocks up to a more equal weighting, I could both rebalance my portfolio and increase my yield. So that is what I decided to do.

But first things first.

I always carry out sales of positions first, then purchases of new positions second, and finally reinvestment of any remaining funds. I previously had only one criteria for selling a stock, and that was if it cut or froze its dividend. But as I reviewed my portfolio I noticed that due to its price increase this year the yield of Nike (NKE) had fallen to under 1.4%. And when I reviewed its chart on FAST Graphs I saw that it had become significantly overvalued. It was trading well over its True Worth line (the orange line), and its normalized PE line (the blue line).

(click to enlarge)

I had not planned on selling any stocks just because they become overvalued. As long as they continued to raise their dividends at a growth rate I was happy with I was planning on keeping them, no matter what happened to the price. However, my criteria for selling is a work in progress, and in this case, since NKE's yield had fallen so low, and since I was already trying to raise the yield of my portfolio, I decided that I would sell NKE and put the proceeds into some higher yielding stocks.

I sold ! NKE, 143 shares at $72.39.

Next I turned to Phillips 66 (PSX). I received PSX when it was spun off from ConocoPhillips (COP). I had held onto it since that time because I wasn't quite sure what to do with it. Should I buy more shares to bring it up to a full position? Or should I just sell it and move on? I wanted to see what kind of dividend policy PSX would develop before I made a decision, and it did recently raise its dividend by 24.8%. When I saw that I thought about bringing PSX up to a full position, but I also knew that PSX, even with the dividend increase, would have a yield of only 2.70%. In the end my desire to increase my portfolio yield over-ruled my pleasure with the dividend increase, and I sold my small position in PSX.

I sold PSX, 39 shares at $58.67.

There were no other stocks to sell, so I turned to my purchases. I recently learned, through my readings on SA that, although my income is too high to contribute directly to a Roth IRA, I could still do a "back door Roth" by opening a traditional IRA, funding it, and then transferring the money into a Roth. I confirmed this with my accountant, went over the process, and created and funded two Roth IRAs, one for me and one for my wife. I funded each with $5,500, for a total of $11,000. I also received two quarterly profit sharing contributions of $12,750 into my 401k, one in mid July and one in the past week. With the dividends I collected in the last 3 months of $5,273.54, and the proceeds from the two stock sales, this brought the total cash available for purchases and reinvestments to $41,657.98.

Here is a quick summary of my purchase criteria for "regular" stocks:

Stock is on the CCC listYield >2.5% (It used to be > 2.0%)Payout ratio < 60%Chowder Rule >12%Quality Rating of A- or better from S&PFAST Graph shows a 10 year uptrend in earnings and that the stock is not overvalued.

Here is the list of passing stocks:

Lockheed Mar! tin (LMT)! Raytheon Company (RTN) First of Long Island (FLIC) Baxter International (BAX) Deere & Company (DE) General Mills (GIS) AFLAC Inc. (AFL) Norfolk Southern (NSC) CSX Corp. (CSX) McDonald's Corp. (MCD) Target Corp. (TGT) Microsoft Corp. (MSFT) Qualcomm Inc. (QCOM) Owens & Minor (OMI) Exxon Mobil (XOM) PepsiCo (PEP) Chevron (CVX) Northrop Grumman (NOC)

I already own all these stocks except for BAX, GIS, XOM, NOC and OMI

For MLPs, REITs and Utilities I use different criteria:

On CCC listYield > 3%Chowder Rule > 8%DGR for all time periods (1yr, 3yr, 5yr and 10yr) at least 4%, but also consistent over all time periods.FAST Graph shows a 10 year uptrend (or the life of the company, if less than 10 years) in Funds From Operations (FFO), and shows that the stock is not presently overvalued.

The REITs and Utilities that passed my screen were:

Omega Healthcare (OHI)

Digital Realty Trust (DLR)

Realty Income Corp. (O)

Dynex (DX)

Wisconsin Energy (WEC)

Avista (AVA)

Alliant Energy (LNT)

Dominion Resources (D)

Northeast Utilities (NU)

New Jersey Resources (NJR)

Since I wanted to increase the yield of my portfolio, I decided to look at just the REITs and Utilities for my new purchases, and not the "regular" stocks. I avoided MLPs due to the tax issues (which will be discussed later). I already own OHI, DLR, O, AVA and D. So I decided to buy DX, the only REIT I didn't already own, and WEC, the utility which had the highest, and most consistent dividend growth rate.

I purchased DX, 1567 shares at $8.74.

(click to enlarge)

(OK, OK. I know. The day after I purchased it DX announced a dividend cut. DAMN!!! But I don't like churning in my portfolio, or trading (and I really like the dividen! d!), so I! decided to hold onto it for now and see what happens the rest of the year. If it cuts again I will dump it.)

I purchased WEC, 336 shares at $40.08.

(click to enlarge)

Once I bought these new positions, I decided to use the rest of the funds in my account for reinvestment, focusing on some of the higher yielding stocks in my portfolio that were not yet full positions. Looking over my holdings, I decided to make the following purchases:

Alliance Resource Partners (ARLP), 26 shares at $75.12.

Avista, 98 shares at $26.18.

Digital Realty Trust, 54 shares at $54.63.

Omega Healthcare, 66 shares at $30.41.

Williams Partners (WPZ), 38 shares at $52.73.

Finally, I had to make some adjustments to my portfolio due to an unexpected tax issue. Through the comments section in response to an article I wrote about some MLPs that passed my criteria, I learned that there are extra tax implications to holding MLPs in a tax deferred retirement portfolio. With this new knowledge I decided to change some of my holdings:

I sold Kinder Morgan Energy Partners (KMP), 168 shares at $80.38, and I replaced it with Kinder Morgan Management (KMR), 264 shares at $75.39. KMR pays its quarterly distribution in extra shares, rather than in cash, as KMP does. For some (crazy) reason this makes it okay to hold it in a retirement account without the tax implications.

I sold AmeriGas Partners (APU), 339 shares at $43.78, and replaced it with UGI Corp, which is the general partner for APU, 379 shares at $39.29.

I sold ONEOK Partners (OKS), 265 shares at $51.25, and replaced it with ONEOK inc. (OKE), 267 shares at $52.31.

Although I have removed these three MLPs from my portfolio, I am still holding ARLP, Buckeye Partners (BPL), Plains All American (PAA), and Williams Partners. I am going to continue to hold these until I receive the K-1 forms next year, so that I can mo! re carefu! lly analyze the tax implications, and decide what to do with these other positions. I may decide that the higher yield of the MLPs might make it worth holding on to them, even though I would eventually have to pay some extra taxes. I will have more to say about this when I see the K-1 forms. Perhaps people with have some comments on this issue?

After these transactions here is the present make-up of my portfolio:

SYMBOL	SHARES	PRICE	Market Cap	Dividend per share	Yield	Income	% of Port.
Aflac	217	63.01	$13,673.17	1.4	2.22%	$303.80	1.86%
Air Products (APD)	111	105.99	$11,764.89	2.84	2.68%	$315.24	1.60%
Alliance Resource Partners	175.263	75.86	$13,295.45	4.61	6.08%	$807.96	1.81%
Avista	508.755	26.16	$13,309.03	1.22	4.66%	$620.68	1.81%
Boeing (BA)	153	115.5	$17,671.50	1.94	1.68%	$296.82	2.41%
BHP Billiton (BBL)	174	58.35	$10,152.90	2.36	4.04%	$410.64	1.38%
Becton Dickson (BDX)	137	99.97	$13,695.89	1.98	1.98%	$271.26	1.87%
Buckeye Pa! rtners	280	65.56	$18,356.80	4.25	6.48%	$1,190.00	2.50%
Cracker Barrel (CBRL)	183	102.93	$18,836.19	3	2.91%	$549.00	2.57%
Cincinnati Financial (CINF)	279	47.11	$13,143.69	1.68	3.57%	$468.72	1.79%
ConocoPhillips	197	70.01	$13,791.97	2.76	3.94%	$543.72	1.88%
CSX Corp	560	25.73	$14,408.80	0.6	2.33%	$336.00	1.96%
Chevron	90	118.53	$10,667.70	4	3.37%	$360.00	1.45%
Dominion Resources	219	62.03	$13,584.57	2.25	3.63%	$492.75	1.85%
Deere	109	82.12	$8,951.08	2.04	2.48%	$222.36	1.22%
Diageo (DEO)	62	126.21	$7,825.02	3.59	2.84%	$222.58	1.07%
Digital realty trust	232	52.82	$12,254.24	3.12	5.91%	$723.84	1.67%
Darden Restaurants (DRI)	303	45.76	$13,865.28	2.2	4.81%	$666.60	1.89%
Dynex Capital	1,567	8.51	$13,335.17	1.08	12.69%	$1,692.36	1.82%
Emerson Electric (EMR)	161	63.86	$10,281.46	1.64	2.57%	$264.04	1.40%
First of Long Island	419	37.49	$15,708.31	1.04	2.77%	$435.76	2.14%
General Dynamics (GD)	162	86.22	$13,967.64	2.24	2.60%	$362.88	1.90%
General Electric (GE)	339.716	24.12	$8,193.95	0.76	3.15%	$258.18	1.12%
Hasbro (HAS)	300	46.89	$14,067.00	1.6	3.41%	$480.00	1.92%
Harris Corp (HRS)	253	58.7	$14,851.10	1.68	2.86%	$425.04	2.02%
Illinois Tool Works (ITW)	157	75.05	$11,782.85	1.68	2.24%	$263.76	1.61%
Johnson & Johnson (JNJ)	159	86.92	$13,820.28	2.64	3.04%	$419.76	1.88%
Kinder Morgan Mgt	264	75.16	$19,842.24	5.28	7.03%	$1,393.92	2.70%
L-3 Communications (! LLL)	146	92.85	$13,556.10	2.2	2.37%	$321.20	1.85%
Lockheed Martin	144	123.23	$17,745.12	5.32	4.32%	$766.08	2.42%
McDonald's	98	94.87	$9,297.26	3.24	3.42%	$317.52	1.27%
Medtronic (MDT)	261	53.14	$13,869.54	1.12	2.11%	$292.32	1.89%
Microsoft	495	33.68	$16,671.60	1.12	3.33%	$554.40	2.27%
Norfolk Southern	174	77.16	$13,425.84	2.08	2.70%	$361.92	1.83%
Novartis (NVS)	200	75.85	$15,170.00	2.53	3.34%	$506.00	2.07%
Realty Income Corp	354	39.73	$14,064.42	2.18	5.49%	$771.72	1.92%
Omega Healthcare	449	30.23	$13,573.27	1.88	6.22%	$844.12	1.85%
ONEOK Inc	267	53.33	$14,239.11	1.52	2.85%	$405.84	1.94%
Plains All American	287	52.38	$15,033.06	2.35	4.49%	$674.45 !	! 2.05%
Paychex (PAYX)	438	39.56	$17,327.28	1.4	3.54%	$613.20	2.36%
PepsiCo	162	79.69	$12,909.78	2.27	2.85%	$367.74	1.76%
Procter & Gamble (PG)	166	75.99	$12,614.34	2.41	3.17%	$400.06	1.72%
Pimco Corporate & Inc (PTY)	793	17.96	$14,242.28	1.38	7.68%	$1,094.34	1.94%
Qualcomm	152	67.19	$10,212.88	1.4	2.08%	$212.80	1.39%
Raytheon	198	75.09	$14,867.82	2.2	2.93%	$435.60	2.03%
Sysco (SYY)	372	31.55	$11,736.60	1.12	3.55%	$416.64	1.60%
Target	195	63.44	$12,370.80	1.72	2.71%	$335.40	1.69%
UGI Corp (UGI)	379	38.42	$14,561.18	1.13	2.94%	$428.27	1.98%
United Technologies (UTX)	108	103.8	$11,210.40	2.14	2.06%	$231.12	1.53%
Walgreens (WAG)	294	56.03	$16,472.82	1.26	2.25%	$370.44	2.24%
Wisconsin Energy	336	40.14	$13,487.04	1.53	3.81%	$514.08	1.84%
Wells Fargo (WFC)	257.431	41.12	$10,585.56	1.2	2.92%	$308.92	1.44%
Wal-Mart (WMT)	184	73.21	$13,470.64	1.88	2.57%	$345.92	1.84%
Williams Partners	258	52.71	$13,599.18	3.45	6.55%	$890.10	1.85%
$$CASH	2,348.41	-	$2,348.41	-	-		0.32%
Total			$731,412.09		3.77%	$27,577.87

And finally, some information about how the portfolio has done this year.

INCREASES

Here are the dividend increases since my last update:

ConocoPhillips declares $0.69/share quarterly dividend, 4.5% increase from prior dividend of $0.66.

Illinois Tool Works Inc. declares $0.42/share quarterly dividend, 10.5% increase from prior dividend of $0.38.

Cincinnati Financial Corporation declares $0.42/share quarterly dividend, 3.06% increase from prior dividend of $0.4075.

Harris Corporation declares $0.42/share quarterly dividend, 13.5% increase from prior dividend of $0.37.

Realty Income Corporation declares $0.18185/share monthly dividend, 0.2% increase from prior dividend of $0.18154.

Microsoft Corporation declares$0.28/share quarterly dividend, 22.0% increase from prior dividend of $0.23.

McDonald! 's declar! es $0.81/share quarterly dividend, 5% increase from prior dividend of $0.77.

Phillips 66 (PSA) declares $0.39/share quarterly dividend, 24.8% increase from prior dividend of $0.31.

INCOME

The dividends I collected for the past three months are:

April -- $1959.77May -- $ 2059.03June -- $ 2037.02July -- $517.25Aug -- $2312.7Sep -- $2443.57

Not included in these totals are 2.622 shares of GE, 2.263 shares of ARLP, 3.794 shares of OKS, 1.866 shares of WFC, and 4.755 shares of AVA, all received due to dividend reinvestment in my Optionsxpress account.

Year to date I have collected $15,498.76 in dividends. Since my last posting in July, my "expected dividends received in the next 12 months" (ED12) has increased from $23,906.79 to $27,577.87, an increase of 15.35%. This was helped by the purchase of DX, WEC and the additional shares of ARLP, AVA, DLR, OHI and WPZ, but was hurt somewhat by the conversion of OKS to OKE and APU to UGI. Of course the extra dividends coming from the stocks purchased with new deposits also helped. My ED12 has increased from $22,475.00 at the beginning of the year to $27,577.87 today, an increase of 22.7%.

RETURNS:

My portfolio has increased by 4.12% since my last update on July 8th. In the same time period the S&P was up 0.91%. The YTD return for my portfolio is 20.45%. This is compared to the S&P's return of 18.53% (as of 10/4). Although beating any particular benchmark is not a specific goal of mine, I'm still going to keep track of the S&P, just to insure, for myself, that my portfolio is not performing ridiculously poorly. My goal and my focus is dividend income, but I still want my overall portfolio value to perform reasonably well.

Here are the YTD returns (not including reinvested dividends) for each of the stock I hold:

!

AFL	14.94%		D	16.42%		LLL	18.62%		PEP	13.85%
APD	19.89%		DE	-6.57%		LMT	31.30%		PG	10.00%
APU	6.38%		DEO	3.67%		MCD	4.24%		PSX	2.95%
ARLP	24.05%		DLR	-23.65%		MDT	25.26%		PTY	-11.63%
AVA	5.70%		DRI	1.94%		MSFT	19.51%		QCOM	2.47%
BA	49.79%		EMR	15.35%		NKE	38.22%		RTN	34.59%
BBL	-21.09%		FLIC	31.26%		NSC	20.51%		SYY	-2.32%
BDX	23.76%		GD	19.32%		NVS	15.68%		TGT	5.63%
BPL	34.73%		GE	10.92%		O	-4.50%		UTX	22.33%
CBRL	57.94%		HAS	28.22%		OHI	24.98%		WAG	44.14%
CINF	18.21%		HRS	15.51%		OKS	-7.78%		WFC!	14.81%
COP	18.51%		ITW	19.49%		PAA	7.94%		WMT	5.29%
CSX	25.19%		JNJ	20.85%		PAYX	24.21%		WPZ	4.85%
CVX	5.74%		KMP	-5.35%

CONCLUSION:

I am extremely happy with my portfolio's progress. Even if you take away the dividends generated by the new money deposited into my accounts, I seem to be on track for my goal of at least 10% DGR, and my overall portfolio return has been quite good. Out of 55 stocks I have owned in my portfolio this year, only two have cut their dividends. NLY was sold, and I already mentioned DX. At the time of my last update it appeared that COP had frozen its dividend, but soon after it increased it by 5% so I was not forced to sell it.

My portfolio yield is up to 3.77%. I would still like to get it up to 4%, but that would probably mean selling many of the lower yielding stocks I own, those that have higher DGRs, and/or buying some other high yield investments which at the present time don't meet my criteria. This might mean sacrificing dividend quality for dividend yield, and I am not willing to do that at this time.

Nine months into my conversion to being a strict DGIer, K.I.S.S.ing is working very well for me.

Thank you for reading my portfolio update. I welcome your comments and criticisms.

Source: My K.I.S.S. Dividend Portfolio 3rd Quarter Update

Disclosure: I am long DX, WEC. 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...)