Can Apple Still Put the “I” in Innovation?

5 Best Safest Stocks To Invest In Right Now

Apple Inc. (Nasdaq: AAPL) made a statement for its vitality and relevance when it announced on Sept. 23 that it had just sold, in the first three days of sales, a breathtaking 9 million units of its newest line of iPhones.

It seemed like the good old days, when Steve Jobs ran the company and every product rollout contained the glitz and glamour of a gala Hollywood opening. Apple said its quarterly sales and profit margin would come in at the high end of its prior projection. Last July, Apple forecasted revenue between $34 billion and $37 billion for its fiscal fourth quarter and gross margin between 36% and 37%. As the topper, Apple's shares climbed $23.23, or 5%, on Monday and closed at $490.64 on the Nasdaq.

But there were clouds on the horizon, and current and prospective Apple shareholders should be aware of them.

Yes, those sales of iPhones represented a terrific accomplishment. But once again, the Apple of today could be accused of living off the scraps of Steve Jobs' record of innovation in the iPhone, iPad, iPod and Mac. Since Jobs died on Oct. 5, 2011, the world has been waiting breathlessly to see the introduction of a new, equally dynamic and innovative product from the "i" folks.

Under Tim Cook, Jobs' successor, Apple has continued to usher in various versions of previous hit products, such as what we saw on that September weekend. What about the bubbling speculation about Apple's Next Big Product?

Where are the iWearables? With its Google Glass release, Google (Nasdaq:GOOG) has done what Jobs was famous for: Devise a product that in turn creates a big buzz in the media and, by extension, the marketplace. Google Glass, carrying an aura of status, has accomplished exactly what Jobs was able to pull off again and again: Persuading consumers that they must own a product they don't really need. Samsung has! also shown it can market popular, buzzworthy smartphones.

Asked whether Apple has slowed its pace of innovation under Cook, Wharton School Professor Peter Fader said: "I don't think anyone would deny that. But it's not to say Apple is a laggard under Cook. It's just that we aren't seeing the same level of 'wow' innovation under Cook as with Jobs. Apple is doing the technical product tweaks as well as anyone."

Why does Fader believe this is the case?

"There are several obvious answers out there," Fader said. "The markets that Apple operates in have gotten much more crowded, and they're operating now against some very strong competitors. Early on, there was a feeling that Apple could do anything it wanted partly because it had such a large network of passionate, loyal users.

"Another factor is the risk-seeking atmosphere now, lots of grandmas and grandpas are Apple customers, too, and they wouldn't be the first to buy the coolest, newest products, such as a new iPhone. Apple has to be more cautious because it doesn't want to alienate that segment of its audience."

Apple Chief Executive Officer Cook shrugged off the carping and was in a triumphant mood the Monday following its sales announcement when he tweeted: "Thanks to all our amazing customers for the fantastic weekend."

Meanwhile, followers of Apple watch and wait for progress on the dynamic new-products front. They collectively ask: Can Apple still put the "I" in innovation?

Video: How Would the Markets React to a Syria Attack?

There's a great deal of uncertainty about whether there will be a Syria attack from the United States - but investors want to know how markets would react to such a strike.

Secretary of State John Kerry has said a Syria attack - when and if it comes - would be "extremely limited and targeted," and support for an attack is far from ironclad.

Despite all this uncertainty, the Dow Jones Industrial Average is up about 150 points so far today.

Would the markets "like" an attack on Syria, or would they pull back? And could an attack mean even more stimulus and bond buying for Bernanke?

Money Morning Chief Investment Strategist Keith Fitz-Gerald speaks with FOX Business' Stuart Varney of "Varney & Co."and gives the surprising answers to these questions.

Top 5 Cheap Companies To Buy Right Now

 

You can take advantage of the "calm before the storm" in Syria, and make some serious energy profits on the "Syrian premium." Dr. Kent Moors of our Energy Advantageservice shows you what to do before the shooting starts. Click here for how to play the "Syrian Premium."

Deutsche Bank Bumps Up Target for The Goodyear Tire & Rubber Company (GT)

Deutsche Bank announced on Monday that it was maintaining a “Buy” rating on the Ohio-based tire manufacturer The Goodyear Tire & Rubber Company (GT), but went on to raise its price target for the company.

Rod Lache, an analyst with the firm, noted that he sees strength in the tire sector over the coming season. Lache went on to note that because Goodyear has shifted its focus onto “higher end” tires, the company should rake in higher revenues next quarter seeing as how Deutsche Bank’s current valuation model does not reflect this trend. Rod Lache reiterated a “Buy” rating on the stock and raised his price target from $23 to $29.

Hot Value Companies To Watch For 2014

Goodyear shares traded lower on Monday, shedding 0.47% on the day. The stock is up almost 70% YTD.

Agree To Purchase Priceline.com At $720, Earn 7.6%

Best Low Price Companies To Own For 2014

Investors eyeing a purchase of Priceline.com Priceline.com (NASD: PCLN) shares, but tentative about paying the going market price of $1003.44/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2016 put at the $720 strike, which has a bid at the time of this writing of $54.50. Collecting that bid as the premium represents a 7.6% return against the $720 commitment, or a 3.3% annualized rate of return (at Stock Options Channel we call this the YieldBoost).

Click here to find out the Top YieldBoost Puts of the Nasdaq 100 »

Selling a put does not give an investor access to PCLN's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. And the person on the other side of the contract would only benefit from exercising at the $720 strike if doing so produced a better outcome than selling at the going market price. (Do options carry counterparty risk? This and six other common options myths debunked). So unless Priceline.com sees its shares fall 28.4% and the contract is exercised (resulting in a cost basis of $665.50 per share before broker commissions, subtracting the $54.50 from $720), the only upside to the put seller is from collecting that premium for the 3.3% annualized rate of return.

Below is a chart showing the trailing twelve month trading history for Priceline.com, and highlighting in green where the $720 strike is located relative to that history:

The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2016 put at the $720 strike for the 3.3% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for Priceline.com, Inc. (considering the last 250 trading day closing values as well as today's price of $1003.44) to be 24%. For other put options contract ideas at the various different available expirations, visit the PCLN Stock Options page of StockOptionsChannel.com.

10 Most Expensive Beers In The NFL

PORTLAND, Ore. (TheStreet) -- Fans will forgive a National Football League team when it loses. They'll roll with it when attendance sags and it doesn't broadcast games on local television. They'll even hang in there when it takes public money to build a stadium, despite the vast wealth of the team's ownership.

Hike the price of beer, however, and you'll give fans enough rage to keep them nice and toasty through the waning regular season games of winter.

The NFL fans who dislodge themselves occasionally from their cushy, screen-and-snack-filled game day caves, turn off DirecTV's (DTV) NFL Sunday Ticket and actually attend games this year should prepare to get soaked on everything including the suds. The league's average ticket price jumped 3.1%, to more than $81, according to Team Marketing Report. That's the first time it's drifted over the $80 mark, and nearly triple the cost of the average Major League Baseball ticket.

That isn't exactly doing wonders for the argument the NFL is a family-friendly experience. The average cost to take a family of four to a game, park, have a beer, hot dog and soda and go home with a program and cap also jumped 3.7%, to nearly $460. If you're a beer-swilling single, however, it's not such a bad year. After beer prices that jumped from an average of 42 cents an ounce in 2011 to 43 cents an ounce last year, they actually sank to roughly 41 cents an ounce this year. That's still $7 for little more than a pint, but it seems as if teams are making beer an actual concession to fans feeling otherwise squeezed by ticket prices. In Ohio, fans of the Cleveland Browns and Cincinnati Bengals still enjoy $5, 12-ounce beers for 42 cents an ounce. That's still costly compared with the 35 cents per ounce paid by folks watching the Miami Dolphins (20 ounces for $7) and New Orleans Saints (24 ounces for $8.50). The Carolina Panthers have easily the lowest per-ounce price in the league at 27 cents per ounce (22 ounces for $6), but the biggest surprise may be in New England. Despite having the league's highest average ticket price at $118 and making the AFC Conference Championship last year, the 38 cents per ounce the team charges for beer ($7.50 for 20 ounces) is the lowest of any team that made the playoffs last year. Other fans aren't nearly as fortunate. With help from Team Marketing Report's Fan Cost Index, we found the Top 10 beer prices in the league and the teams that view their fans as a keg of cash with a tap that's always open:

10. Tie: St. Louis Rams/Buffalo Bills/San Francisco 49ers/Washington Redskins Price of a small draft beer: $9 for 20 ounces in St. Louis, D.C. and Buffalo; $6.25 for 14 ounces in San Francisco. Price per ounce: 45 cents

That's a whole lot of nerve, Rams and Bills concessions folk.

We'd expect this from the 49ers, who just went to the Super Bowl, play in one of the most expensive cities in the country and are skipping town for fancy new digs in Santa Clara next year. We'd even expect it from Washington, which just had rookie quarterback Robert Griffin III lead the team to its first playoff appearance since 2007. But St. Louis? This town was built on beer, but that isn't going to make fans more sympathetic when the team hasn't made the playoffs since 2004, hasn't had a winning record since 2003 and has had management demand that the city pay hundreds of millions of dollars for a new stadium. To top it off, the team jacked up the price of tickets 8.1% despite the fact that big-ticket franchise running back Stephen Jackson left for Atlanta. Also see: 5 Pro Sports Towns Doing Just Fine Without the NFL>> And Buffalo ... seriously? Your starting quarterback is basically your last man standing, your front office just bilked the surrounding community out of $200 million to keep the team around for a scant eight years and you're still playing a home game a year in Toronto. People were just overcoming their fear of Y2K the last time the Bills were in a playoff game Jan. 8, 2000, and the team has only managed one winning season since -- in 2004. Your fans have to brave lake-effect snow and sub-freezing temperatures just to keep the team on local television late in the season and you charge them more for beer. If anything, that fan base deserves a round of Labatt's on the house.

6. Green Bay Packers Price of a small draft beer: $7.50 for 16 ounces Price per ounce: 42 cents

No, they couldn't catch a break on that botched call in Seattle or get past the 49ers in the playoffs to get Aaron Rodgers another ring, but at least the average cost of beer is down.

The 12 ounces of beer the pack sold for $6 last year looks cheaper on the surface, but that's 50 cents an ounce. Fans at Lambeau Field are paying $1.50 more upfront, but a whopping eight cents less on the unit price. That's not such a bad deal. Even if you're still feeling ripped off, the best part of being a Packers fan is the team's community ownership. If you're a shareholder and hate the price you're paying for what's essentially the life's blood of Wisconsin, make some noise about it.

5. Detroit Lions Price of a small draft beer: $9 for 20 ounces Price per ounce: 45 cents

Those prices aren't from Team Marketing Report, but from Lions spokesman Ben Manges. TMR originally quoted a price of $8 for 12 ounces as Ford (F) Field's cheapest beer. That's 67 cents an ounce, which caught the attention of folks within the Lions organization.

While that's what the team charges in the suites, Manges says 93% of the beers sold during Lions games go for the figure we listed above. The team sells an $8 at its stands, but in 16-ounce bottles. That's 53 cents an ounce, but the Lions say that accounts for only about 6% of their beer sales. What all of this obscures is the fact that the Lions have raised their draft beer price 50 cents -- or roughly three cents per ounce -- from last season. That wouldn't hurt nearly as badly if the team hadn't gone 4-12 in 2012 just a year after making its first playoff appearance since 1999. Or if it wasn't just the latest losing campaign for a team that's only had winning seasons twice since 1997. They also haven't won a playoff game since 1991, which was their only playoff win of the Super Bowl era. Its spokespeople can haggle over beer prices all they'd like: The fact is that a beer served at a Lions game at any price is only anesthetic for the pain this team continues to inflict on its fan base. Also see: 5 NFL Teams Most Likely To Be Blacked Out In 2013>>

4. Oakland Raiders Price of a small draft beer: $9.75 for 20 ounces Price per ounce: 49 cents

The Raiders have spent much of their time in Oakland losing and having home games blacked out on local television. Last year's 4-12 team was considered a return to form after two straight 8-8 seasons and the false hope that accompanied them. Their home stadium -- O.Co (OSTK) Coliseum -- is the last in the country to host both a football and baseball team, is roundly despised by the latter and is so decrepit that the sewers back up into the locker room. The team is still considering whether it wants to stay in town or move to a place that will give it some stadium money. In the meantime, it's making fans shell out $2.75 more for its smallest beer than it did a year ago, but reducing the cost by a scant 1 cent per ounce. If Terrelle Pryor doesn't work some magic, it could be an exceptionally bleak year in the Black Hole.

3. Tie: Seattle Seahawks/Pittsburgh Steelers Price of a small draft beer: $8 for 16 ounces Price per ounce: 50 cents

The Seahawks gave the "12th Man" its own flag at CenturyLink (CTL) Field. Their fans registered on the Richter scale when running back Marshawn Lynch scored a touchdown in the playoffs three years ago and packs its home stadium. Even in its worst years, the Seahawk faithful generate crowd noise that reaches 140 decibels, or roughly as loud as one of Boeing's jet engines. Yet somehow the emergence of rookie quarterback Russell Wilson and the team's return to the playoffs have stirred up the ridiculous notion that Seattle should create more stadium parking just to accommodate all the bandwagons.

So maybe there were way more No. 3 Russell Wilson shirts at Bumbershoot this year than there were when Wilson was fighting for a job with Matt Flynn last year. The Mariners wish they had this problem with any of their players. The Seahawks haven't been hurting for fan support in recent years, despite what local revisionist sports historians might tell you. That's what makes it easy for the Seahawks to hold the line on beer prices despite the team's changing fortunes. It was kind of the opposite situation in Pittsburgh, where a rash of injuries to stars Ben Roethlisberger and Troy Polomalu and some ugly losses to the Browns, Raiders, Titans and San Diego Chargers led the team to an 8-8 record. No playoffs, no bandwagon fans hoping for a Super Bowl ring: Just one of those down years in the Steel City and a long winter to follow. How do you raise beer prices on fans after a year like that? If you're the Steelers, you don't.

1. Dallas Cowboys Price of a small draft beer: $8.50 for 16 ounces in Dallas Price per ounce: 53 cents

NFL beer prices came down from last year's highs of 55 to 58 cents per ounce. That left the Cowboys with the dubious distinction of serving the most expensive beer in the league despite not raising beer prices.

In owner Jerry Jones's stadium wonderland of giant screens at midfield and dancing girls in the cages around the stadium, there is no public transportation to games whatsoever. That means you're either taking a cab or paying $75 for parking, well over the $31 league average. Want a program? That's $10, or more than double the league average of $4. Jones is aware that the Cowboys haven't won a Super Bowl since 1995, though, have won one playoff game since 1997 and haven't made the playoffs since 2009 and hasn't raised a single price since last season. The team even gave AT&T (T) naming rights to Cowboys Stadium to generate more cash. The Cowboys tried to do right by the fans this season, but even holding the line on prices couldn't keep Jones from wearing the league's black hat. -- Written by Jason Notte in Portland, Ore. >To contact the writer of this article, click here: Jason Notte. >To follow the writer on Twitter, go to http://twitter.com/notteham. >To submit a news tip, send an email to: tips@thestreet.com. RELATED STORIES: >>Not Your Typical Craft Beer Lover's Getaway >>5 Pro Sports Towns Doing Just Fine Without the NFL >>5 NFL Teams Most Likely To Be Blacked Out In 2013

Jason Notte is a reporter for TheStreet. His writing has appeared in The New York Times, The Huffington Post, Esquire.com, Time Out New York, the Boston Herald, the Boston Phoenix, the Metro newspaper and the Colorado Springs Independent. He previously served as the political and global affairs editor for Metro U.S., layout editor for Boston Now, assistant news editor for the Herald News of West Paterson, N.J., editor of Go Out! Magazine in Hoboken, N.J., and copy editor and lifestyle editor at the Jersey Journal in Jersey City, N.J.

Jobs Numbers Paint Unclear Picture for Fed Tapering

Friday’s jobs report released by the Labor Department created uncertainty among market watchers as to whether the Fed will start tapering any time soon.

The economy created 169,000 jobs in August, the report said, fewer than the 180,000 expected, and unemployment dipped to 7.3%.

“Ultimately, we view the jobs report to be mostly noise from month to month, especially with a fairly ‘middle of the road’ report like this one with some pluses and minuses,” Michael Kitces, director of research for Pinnacle Advisory Group, a private wealth management firm located in Columbia, Md., and a ThinkAdvisor blogger, told ThinkAdvisor on Friday.

Like other market watchers, Kitces says the real issue heading into the fall is whether the Fed begins to taper or not. “There doesn’t seem to be much indication from today’s jobs report that definitively confirms the taper will or will not get under way soon.”

But David Kelly, chief global strategist at J.P. Morgan Funds, noted in his weekly commentary, released Monday, that “in light of last week’s upward revision to second-quarter GDP, a number of 150,000-plus on payrolls and 7.4% on unemployment would probably be enough to keep the Fed on track to begin a wind down to QE, with an announcement likely coming in a press release and Bernanke news conference following the Sept. 17-18 FOMC meeting.”

Reuters columnist Felix Solomon opined that the August report showed “that the reality of the economy was not as good as we thought it was, and that the market probably got ahead of itself in anticipating a taper beginning very soon.”

The Financial Times opined that at its Sept. 17 Federal Open Market Committee meeting, Fed Chairman Ben Bernanke “will have to decide whether the [August jobs] report reflects a weakening labor market — in which case it may want to delay a taper of asset purchases — or whether it is further evidence that the unemployment rate can keep coming down despite feeble overall growth. In that case it may choose to go ahead with tapering in September.”

Indeed, the Twittersphere was full of tweets labeling the jobs report as “lousy,” but Senate Majority Leader Harry Reid, D-Nev., opined that Friday’s employment report “shows that we are moving in the right direction, but not fast enough.”

Congress, Reid says, “has a choice when it comes to the economy: we can choose policies that accelerate job creation and expand the middle class, or the path to European-style austerity favored by Tea Party Republicans.”

Predictably, House Majority Leader Eric Cantor, R-Va., placed the bame elsewhere. "While the unemployment number dropping looks good on the surface, the details show otherwise," he said. He added that persistent long-term unemployment, "discouraged people leaving the work force, and millions taking part-time jobs because they have no choice are not signs of a strong recovery. The president’s policies are holding back strong job creation.”

---

Check out Specter of Fed Chairman Summers Yields Pessimism, Uncertainty on ThinkAdvisor.

Is BP Undervalued?

With shares of BP (NYSE:BP) trading around $42, is BP 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

BP is an integrated oil and gas company. The company provides its customers with fuel for transportation, energy for heat and light, lubricants and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging. It operates in two business segments: Exploration and Production, and Refining and Marketing. The company has been the subject of negative press in recent years due to an oil leak that had significant negative effects. Since then, BP has been repairing its image and looks to be doing it well. Through its segments, BP provides valuable energy products and services that are a requirement for the operation of most businesses and growing populations.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

T = Technicals on the Stock Chart are Mixed

BP stock has taken a lot of heat in recent years but looks to be regaining its footing in the long-term. Currently, the stock is in the middle of a multi-year trading range where a positive break above it may be fairly significant for the stock. 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, BP is trading around its tangled key averages which signal neutral price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
BP Options	19.77%	6%	5%

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

	Put IV Skew	Call IV Skew
May Options	Steep	Average
June Options	Steep	Average

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

On the next page, let’s take a look at the earnings and revenue growth rates and the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2012 Q4	2012 Q3	2012 Q2	2012 Q1
Earnings Growth (Y-O-Y)	-78.98%	7.99%	-124.38%	-19.34%
Revenue Growth (Y-O-Y)	7.51%	-4.72%	-8.71%	9.33%
Earnings Reaction	1.35%	2.78%	-4.59%	-1.64%

BP has seen mixed earnings and revenue figures over the last four quarters. From these figures, the markets have been pleased with BP’s recent earnings announcements.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

P = Average Relative Performance Versus Peers and Sector

How has BP stock done relative to its peers, Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM), Royal Dutch Shell (NYSE:RDSA), and sector?

	BP	Chevron	Exxon Mobil	Royal Dutch Shell	Sector
Year-to-Date Return	2.57%	12.23%	2.38%	-1.90%	9.16%

BP has been an average performer, year-to-date.

Conclusion

BP provides essential energy products to consumers and a wide array of companies that operate in different industries around the world. The stock has suffered in recent times due to the negative press it has experienced from the oil leak incident. However, it is now trying to establish a value range. The two most recent earnings and revenue figures have pleased investors. Relative to its peers and sector, BP has been an average year-to-date performer. WAIT AND SEE what BP does this coming earnings report.

Can New Products Send Apple Stock Higher?

With shares of Apple (NASDAQ:AAPL) trading around $470, is AAPL 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

Apple designs, manufactures, and markets mobile communication and media devices, personal computers, portable digital music players, and a variety of related software, services, peripherals, networking solutions, third-party digital content, and applications. The company's products and services include the iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and further accessory, service, and support offerings. Apple also delivers digital content and applications through its iTunes, App, iBook, and Mac App stores.

Apple released its new lineup of iPhones on Tuesday, including a cheaper, more basic version of the iPhone called the iPhone 5C to target emerging markets. Apple said the new phones would be available in China on September 20. Apple has received a license from Chinese regulators for its iPhones to operate on China Mobile's (NYSE:CHL) 3G and 4G networks, according to the Wall Street Journal. China Mobile is China's largest carrier, with 700 million subscribers, representing a huge untapped market for Apple.

T = Technicals on the Stock Chart Are Strong

Apple stock has been fairly volatile over the last several months. The stock has established a solid base this year that it just broke above. 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, Apple is trading slightly 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 Apple options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Apple Options	28.71%	26%	25%

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
October Options	Flat	Average
November 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 the conclusion.

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	-19.85%	-17.97%	-0.43%	23.03%
Revenue Growth (Y-O-Y)	0.86%	11.27%	17.65%	27.22%
Earnings Reaction	5.13%	-0.16%	-12.35%	-0.90%

Apple has seen decreasing earnings and rising revenue figures over the last four quarters. From these numbers, the markets have been had mixed feelings with Apple’s recent earnings announcements.

P = Weak Relative Performance Versus Peers and Sector

How has Apple stock done relative to its peers Google (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), BlackBerry (NASDAQ:BBRY), and sector?

	Apple	Google	Microsoft	BlackBerry	Sector
Year-to-Date Return	-12.10%	26.45%	23.12%	-10.40%	10.92%

Apple has been a poor relative performer, year-to-date.

Conclusion

Apple strives to provide innovative products and services that consumers and companies  love to own. The company has just unveiled its latest iPhone products, the iPhone 5S and iPhone 5C, but may have disappointed investors who expected a larger link with China Mobile. The stock recently formed a solid base and has now broken above that base. Over the last four quarters, earnings have been decreasing while revenues have been rising. Relative to its peers and sector, Apple has been a weak year-to-date performer. WAIT AND SEE if Apple can hold current price levels.

Does Men’s Wearhouse Suit Your Portfolio?

With shares of Men's Wearhouse (NYSE:MW) trading around $38, is MW 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

Men's Wearhouse is a specialty retailer of men's suits and a provider of tuxedo rental products in the U.S. and Canada. The company operates 1,049 stores in the U.S. and 117 stores in Canada in two segments, retail and corporate apparel, operated under the brand names of Men's Wearhouse, Men's Wearhouse and Tux, K&G, and Moores Clothing for Men. Men's Wearhouse also offers dry cleaning and laundry operations through MW Cleaners. George Zimmer, founder and former Executive Chairman, has been fired and actually revealed, in an open letter, that he planned to take the company private because the company was being steered in a direction he didn’t like. However, investors today seem to like the move. Men's suits will always be in demand — the styles have stood the test of time. Look for Men's Wearhouse to continue to provide its customers with the products and services needed to always look their best.

T = Technicals on the Stock Chart are Strong

Men's Wearhouse stock has witnessed a powerful move higher in recent years. The stock is now bumping-up against previous multi-year highs not seen since last year. 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, Men's Wearhouse 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 Men's Wearhouse options may help determine if investors are bullish, neutral, or bearish.

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Men's Wearhouse Options	29.85%	13%	10%

What does this mean? This means that investors or traders are buying a very 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 very 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 the conclusion.

E = Earnings Are Increasing Quarter-Over-Quarter

Rising stock prices are often strongly correlated with rising earnings and revenue growth rates. Also, the last four quarterly earnings announcement reactions help gauge investor sentiment on Men's Wearhouse’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Men's Wearhouse 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)	25.00%	-9.21%	23.38%	5.50%
Revenue Growth (Y-O-Y)	5.11%	8.23%	7.93%	1.03%
Earnings Reaction	5.67%	19.09%	-2.67%	18.68%

Men's Wearhouse has seen mostly increasing earnings and revenue figures over the last four quarters. From these numbers, the markets have been upbeat about Men's Wearhouse’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has Men's Wearhouse stock done relative to its peers, Express (NYSE:EXPR), Jos. A. Bank (NASDAQ:JOSB), Destination XL (NASDAQ:DXLG), and sector?

	Men's Wearhouse	Express	Jos. A. Bank	Destination XL	Sector
Year-to-Date Return	21.25%	38.10%	-5.19%	52.38%	32.19%

Men's Wearhouse has been an average relative performer, year-to-date.

Conclusion

Men's Wearhouse provides elegant and sought after apparel for men that fit styles around the world. The stock has been on a powerful run but is now bumping up against critical price levels not seen since last year. Over the last four quarters, investors in the company have been upbeat as earnings and revenue figures have been rising. Relative to its peers and sector, Men’s Wearhouse has been an average year-to-date performer. Look for Men’s Wearhouse to OUTPERFORM.

Why Procter & Gamble Is A Rock Solid Investment

Procter & Gamble (PG) is generally regarded as one of the best consumer staple stocks that's currently available for purchase. P&G is a U.S.-based company that produces a large portfolio of consumer goods like cleaners, health products, and pet foods. Behind A.G. Lafley, its CEO, P&G raked in over $80 billion in revenues in 2012. It's commonly regarded as an incredibly safe investment vehicle and has been a favorite of many fund success stories, including that of Warren Buffett.

If P&G isn't a widely known name, the products that it makes almost certainly are. P&G is responsible for such brands as Bounty, Charmin, Crest, Dawn, Downy, Duracell, Febreze, Gillette, Iams, Pampers, Pantene, Tide and Vicks - how many of these do you have floating around your house right now? Did you know that many of the items you consistently use and buy on a daily basis are P&G products?

The Buffett school of common sense states that these are exactly the types of companies that make attractive investments. I commented on this in My 17 Definitive Cardnial Rules for Investing Success, where I stressed applying common sense to your positions.

Why not invest your assets in the companies you really like? As Mae West said, 'Too much of a good thing can be wonderful'.

- Warren Buffett

If you consider yourself a sensible, logical person who prides yourself on common sense skills, this is a great segue to get P&G into your portfolio in some facet. Invest in the things you see everyday, have to purchase and like purchasing, that will be around for a while. The products you buy and use every day contribute to the well being of the company that you're invested in - and this is generally my argument for contending that P&G is now, and will be in the future, a great vehicle for your money.

In the midst of our bull market that we've been in, P&G has continued to provide solid returns, yielding investors about 13% in the last 12 months.

P&G's three-year ch! art is a testament to how the stock has performed throughout its history, not just over the past three years:

(click to enlarge)

P&G is an attractive investment for a couple of reasons. The company is extremely focused on advertising, which is an extremely integral part of the consumer goods business. The things that people buy on a weekly or bi-weekly basis - like toothpaste, beauty supplies, garbage bags, etc - are important staples for general household living. Because something like shampoo, as a product, is never not going to be a necessity, it's a constant ongoing battle between consumer goods companies to make sure that their products are the ones that are being pulled off the shelf every week, as opposed to those of competitors.

Best Value Companies For 2014

P&G has advertising down to an art form, effectively doing it through focus groups and studies, and spending hundreds of million on advertising every year. The company takes a similar attitude to research and development, investing significantly in R&D every year with a focus on continuing to innovate products.

P&G has a strong footprint all over the world, but there are currently opportunities for expansion, most notably in China. In early 2012, ChinaDaily reported that P&G was starting to build new property in China:

Procter & Gamble has begun construction of one of the largest manufacturing sites in Asia, aiming to serve the fast-growing China market.

The new Luogang Plant is in Guangzhou, where P&G's China headquarters is located, and will be built in three stages. The first stage, set to begin operations in the second half of 2013, will produce a variety of goods including baby care products, such as Pampers diapers.

The company did not reveal the co! st of the! new plant, but said it is part of a $1 billion investment in China to be implemented by 2015.

"The Luogang Plant will produce multi-category products that complement the Huangpu Plant and expand P&G's scale of production in the region," said Shannan Stevenson, P&G's president for Greater China. "The new plant once again demonstrates P&G's confidence in the China market and its commitment to Chinese consumers."

In addition, the management is tasteful about how it spends money - recently implementing a 5-year cost saving program that could save up to $10 billion. The Wall Street Journal reported:

Procter & Gamble Co. PG +0.59% plans to eliminate more than 4,000 jobs and streamline its massive marketing budget, in an effort to pare back a relatively bloated cost structure that has weighed on the consumer-products giant's profits.

The cuts, which follow 1,600 job losses already planned for the current fiscal year, are aimed at saving $10 billion by 2016. They represent a rare extensive pruning for the company. P&G has long spent heavily to hire, retain and train managers to run its huge portfolio of brands, leaving it with a higher cost base than many rivals.

"If you think about it, the company is [nearly]175 years old, and it's only the second time it's done this," said Ed Tazzia, global chairman of the P&G Alumni Network and a principal with management consulting firm Sycamore and Co., based in Bloomfield Hills, Mich. "In a world where resizing and reorganization is a daily thing, I think comparatively-because it's so rare-it says a little bit about Procter. They take it pretty seriously."Investors have long been frustrated by P&G's inability to operate more efficiently, and the company's stock rose 3% on the news Thursday. The cuts are also aimed at addressing a mismatch between where P&G spends much of its money-developed countries like the U.S.-and the emerging markets in which the company is seeing m! ost of it! s sales growth.

Not letting your fundamentals get out of line is something that I'm a big supporter of. Cost cutting is something that's recently made Bank of America (BAC) a bullish call for me as well. It's important, no matter how big your company is, to have a firm grasp on every dollar that leaves the company bank account. Fundamentals are always number one, and P&G showing it's aware of that continues to make it an attractive investment.

As the icing on the cake, P&G has paid handsome dividends for over a hundred years, raising them consistently as well. The company is sitting on an enormous pile of cash and, due to its safety is well worth the sizable P/E that it trades at (20.12) - as P&G will continue to outlast recessions and prove to be a rock for yet another several decades. As always, best of luck to all investors.

Source: Why Procter & Gamble Is A Rock Solid Investment

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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...)

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

Book Review: Radical Abundance By K. Eric Drexler

Any book by Eric Drexler must be taken seriously since his Engines of Creation (1986) launched global debates about the field of nanotechnology (assembling objects atom by atom) and the many controversies engendered. These controversies over the intervening decades ranged from the terrifying vision of Bill Joy, founder of Sun Microsystems in WIRED, April 2000, of the future of robotics, genetic engineering and nanotechnology and how they might lead to the extinction of the human races. Bill Joy had read Eric Drexler's Engines of Creation and called for an outright aban on nanotechnology research.

The debate that followed on TV and other media among politicians and the public led Drexler to retreat to his current haven in Britain at Oxford University. The Oxford Martin School studies 21st century challenges to humanity and invited Drexler to join its Program on the Impacts of Future Technology and occasioned his discussions with the Oxford Uehiro Center for Practical Ethics. Drexler's new book, Radical Abundance, reconfirms his faith that the next industrial revolution will be about combining our knowledge from the IT sector (CAD, CAM and 3D printing) with advances in bioengineering, molecular assembly and advanced medical applications. This goes far beyond today's misunderstanding and trivializations of products containing nanoparticles to actual atom by atom scale nanotechnology of Atomically Precise Manufacturing (APM).

As a science policy wonk in Washington, DC, from 1974 - 1980, I was fascinated by Drexler's account of how his and others' vision of nanotechnology was subverted. Drexler recounts how research was and distorted by academics seeking grants, grandstanding politicians and other conflicts during the 1990s over billions of taxpayer-funding of the National Nanotechnology Institute (([NNI)). I had witnessed many similar conflicts while witnessing intellectual mercenaries and their corporate patrons and academic institutes fight over new technologies disruptive of the! ir legacy industries and incumbent interest groups. I saw how electric vehicles were sidelined by the automobile industry; public transit dismantled and defunded and how solar, wind, geothermal and efficiency advances were killed by the fossil fuel and nuclear lobbies.

So, Drexler has performed a service in making the distortions of the optimal path to this APM vision so clear. All advanced countries experience similar policy pitfalls as their competing technology sectors duke it out with newcomers over public subsidies, tax breaks and capturing regulators, politicians and media attention.

Drexler's thesis in Radical Abundance is that APM will arrive one way or another as the successor of industrial manufacturing's metal-bashing, heating and using often toxic, polluting methods, using ever-scarcer raw materials from copper to rare earths. Drexler leads us through the intricacies of the science and experimental molecular engineering needed to bring about this ultimate manufacturing revolution. His chapters on current science and bioengineering and computing advances are difficult reading - even for experts in related disciplines. Drexler's vision of APM requires systemic roadmaps and goal-setting, wide interdisciplinary collaboration and research.

Thus, APM will not be put in place easily and will bring new social concerns over job losses, massive social re-organization, retooling or destroying whole industries and redesigning societies. Material production of most goods is seen as cheap, local, non-polluting and uses common Earth elements: hydrogen, carbon, oxygen, nitrogen, silicon instead of iron, zinc, lead, tin, manganese, chromium, nickel, cobalt as well as coal, petroleum, gas, uranium and virtually all the currently valuable commodities in world trade. APM will be based on super-efficient collection and use of solar energy, massive efficiency gains over biological photosynthesis and new food production processes.

The implications for current financial markets are hardl! y discuss! ed, even though today we see warnings in the new risks to "stranded assets" in fossil fuel reserve valuation, as well as nuclear power and centralized electric utilities.

Thus, I advise asset managers and strategic planners, institutional investors and insurance companies to read Radical Abundance. A recent webinar hosted by Clean Edge and Autodesk, a leading provider of CAD, CAM an advanced computerized design applications, discussed today's precursors of AP in new 3D printing technologies. This webinar wisely invited Biomimicry 3.8 founder Janine Benyus to assess the burgeoning field of 3D printing and the new feedstocks beyond ink and plastics that now include metals, wood and other ingredients. Whether these 3D printers bring us closer to Drexler's vision of APM-driven abundance or just to home-printed guns and toys remains to be seen.

Source: Book Review: Radical Abundance By K. Eric Drexler

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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...)

Financial Advice That Will Save You $50,000

Picture this couple looking for financial advice: At 70 he's a successful businessman about to retire, with a much younger wife who's still working. He's managed their portfolio, and they have accumulated $5 million, including the retirement accounts.

Live bait for anybody in the business of handling money. A stockbroker would see in these clients an annual revenue opportunity of at least $50,000.

Just such a couple came to the wealth management firm where Sheryl Garrett was working a little over a decade ago. They didn't need a lot of hand-holding, and their balance sheet was simple. The usual fee, based on a percentage of assets, would have been a bad deal.

Top 5 Small Cap Companies To Invest In Right Now

Garrett quit the firm, opened a new financial-planning practice charging by the hour and took the couple on as a client, billing them $2,500 the first year for some narrowly targeted assignments, such as rearranging their portfolio to lower their tax bill. (She moved a junk bond fund from a taxable account into a retirement account, for example.) Says Garrett, "They didn't feel like paying somebody 1% a year to babysit their portfolio."

You might entertain feelings of the sort after you have accumulated significant assets. Do you really need to spend $50,000 getting what are likely to be merely average investment returns?

At 51 Garrett now presides over a nationwide confederation of 325 like-minded financial planners who work under the banner of Garrett Planning Network. Their clients are frugal when it comes to portfolio construction, either doing their own stock and bond picking or being content to own cheap index funds. But they are willing to pay to get other kinds of financial advice.

Should I pay off my mortgage? How rapidly should I draw down my IRA? What's the best way to help a relative cover a tuition bill? When should I exercise my employee stock options? At most planners in the Garrett network the answers cost between $180 and $240 an hour.

The initial engagement might consume 5 to 15 hours of billable time, but the tab will be a fraction of what the customer would fork over under a traditional fee schedule.

The country has several hundred thousand stockbrokers, insurance agents and money managers who guide you in investing and spending; 68,500 have the Certified Financial Planner honorific. A small minority bill by the hour. The rest would rather collect either a commission on the stuff they sell or an annual percentage of the money you have.

A stiff fee is unavoidable if you want a pro to pick stocks in a separately managed account. But what if you're persuaded that trying to beat the market is a fool's errand? In that case it makes sense to find a planner who earns his or her keep in some other fashion. You need someone who knows a lot about the tax code, a fair amount about college-tuition aid and something about estates and trusts.

Cambridge Connection is a Franklin, Mich. planning firm that aims to earn back a good chunk of its fees by cutting clients' tax bills. Founder Bert Whitehead, 68, is a tax lawyer turned financial advisor; alongside him are two other tax lawyers and an M.B.A. with an IRS enrolled agent status.

One of Whitehead's tricks is to put taxable brokerage assets into a mechanically chosen list of 50 big companies, from which losers can be plucked for the tax deductions and winners for tax-wise gifts to charities and relatives. Another is to paw through a new client's past tax returns, looking for missed deductions.

Cambridge Connection's bill is likely to be higher than a Garrett planner's but still much lower than that of most advisors. For someone with $5 million it might run $30,000 the first year and $24,000 a year thereafter. That includes tax-return preparation.

Go to forbes.com/sites/baldwin for my 21-part series, "Paying For College."

Best Undervalued Stocks To Invest In 2014

When it comes to investing, it's all about valuation and timing. If you can find undervalued assets at the right time, you can make an absolute fortune.

Some assets are priceless because they are not easily replaced and offer few viable alternatives. Think about fine art, rare diamonds or vintage gold coins.

Now think about the irreplaceable roads, airports and railroads we use every day. How valuable are those assets?

One of the concerns the United States is currently facing is the growing need for improved infrastructure. It is a $2 trillion crisis no one is talking about. So when I think about long-term investments, infrastructure seems to be a safe bet.

 

Infrastructure businesses often generate consistent, growing long-term cash flows. This is because the demand for the everyday services they provide exists in virtually every economic cycle. Also, those companies are often in sectors where there are high barriers to entry. They often own high-value physical assets that are difficult to replicate.

Best Undervalued Stocks To Invest In 2014: Dollar Tree Inc.(DLTR)

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

Advisors' Opinion:

• [By Sam Collins]

  Dollar Tree (NASDAQ:DLTR) is a leading operator of discount variety stores. The stock has hugged its 50-day moving average since mid-February. But a recent minor revision of earnings for this year by several analysts and the recent market sell-off have resulted in a fall from its high of the year at over $70 to under $66. However, Goldman Sachs (NYSE:GS) increased its price target to $73 from $69.

  Technically DLTR is oversold, according to MACD. A break below its 50-day moving average could result in a pullback to $64, but positions could be taken at the current market price. The trading target for DLTR is $72.

Best Undervalued Stocks To Invest In 2014: Schlumberger N.V.(SLB)

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

Advisors' Opinion:

• [By Kathy Kristof]

  Headquarters: Houston
  
  52-Week High: $79.38
  
  52-Week Low: $56.86 
  
  Annual Sales: $39.5 bill.
  
  Projected Earnings Growth: 18% annually over the next five years 
  
  
  Energy-services giant Schlumberger is the prototypical multinational. The company derives roughly 85% of its revenues from overseas, including developing markets in Africa, Brazil and Asia. 
  
  With particular expertise in deep-water drilling, Schlumberger is well-positioned to compete in a world where oil is harder to find, says Argus Research analyst Philip Weiss. Admittedly, oil exploration is a cyclical business, driven largely by crude prices. And weak prices for natural gas have hit the company’s stock, Weiss says. But the price of natural gas has little to do with Schlumberger’s profits, so Weiss just sees this as an opportunity to get the shares at a more reasonable price.

• [By Brian Stoffel]

  This company has been a pick of both Jordan DiPietro and Bryan White. And both analysts have pointed to the company's opportunity for oil exploration abroad -- which is where much of the demand will soon be coming from as well.

  Bryan points out that three-fourths of the company's revenue comes from abroad, with "Brazil, the Middle East, and Africa [as] key regions where activity is expected to be robust and growing."

  Jordan adds, "[Schlumberger] has an important presence in high-growth regions of the world such as Iraq, Mexico, and Russia, and has the competitive advantage to be able to offer full services, from managing entire oil fields to drilling wells."

Best Insurance Stocks To Buy For 2014: Caterpillar Inc.(CAT)

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

Advisors' Opinion:

• [By Jim Cramer,TheStreet]

  Caterpillar (CAT) could be a monster in 2011, especially with the integration of Bucyrus International (BUCY), which I think will turn out to be a fantastic acquisition.

  Current earnings-per-share estimates of about $6 are, I think, way too low. I see this stock going to $120 in the next year. Too gutsy? Ask yourself what happens if the United States comes back as a growth nation? Right now almost all of the growth is overseas.

  Still a fantastic mineral play and a terrific call on world growth.

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

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

Advisors' Opinion:

• [By Sam Collins]

  Household name Tupperware Brands Corp. (NYSE:TUP) is a global direct seller of products with multiple brands through an independent sales force of 2.4 million people. Its product line focuses on kitchen storage and serving solutions, as well as personal-care products. Over 60% of sales in 2011 are expected to come from Europe and Asia, and the stock has appeal as an emerging markets story.

  S&P estimates that 2011 earnings will increase to $4.54 versus $3.53 in 2010, and it increased its rating to a “five-star strong buy” with a recently revised 12-month target of $81, up from $73. The 2005 purchase of Sara Lee’s (NYSE:SLE) direct-sales business, which has a high growth rate, should be a long-term benefit. TUP’s annual dividend yield is 1.92%.

  Technically TUP had a pullback following a new high at over $70 and is currently oversold. Buy TUP at the current market price with a trading target of $70, but longer term a much higher target will likely be attained.

Classic 'Monster' Cereals Making a Comeback for Halloween

General MillsFrute Brute and Yummy Mummy will return to the shelves this fall with an updated look. The Mummy rises again. That would be Fruity Yummy Mummy, to be exact. The "monster cereal" was discontinued by General Mills back in 1992, but the company announced this week that it will bring it back for Halloween. Another discontinued cereal, Frute Brute, will also rise again for the first time since it left shelves back in 1982. They'll join three other monster cereals that still haunt the shelves: Frankenberry, Boo Berry and Count Chocula. (Count Chocula, like its namesake, is evidently immortal.) But all five will receive updated box art to reflect a more modern cartoon style than the original 1970s versions. (Think less "Superfriends," more "Frankenweenie.") For fans of the original look, though, we've got good news: Target (TGT) will exclusively carry "retro" packaging of the cereals, which are sure to become collector's items and flood eBay (EBAY) in the months to come.

Hot Dividend Companies To Buy For 2014

General Mills says the cereals will roll out select retailers "soon," with nationwide distribution coming in early September. Unfortunately, the company says it will be a "seasonal, limited time run," so we recommend stocking up if you find yourself falling in love with Fruit Brute all over again. Here's hoping that this starts a trend of General Mills (GIS), Post (POST) and other companies bringing back their old discontinued cereals. My favorite cereal growing up was Big Mix, which had raisins and panoply of grains, and whose mascot was some unholy creature combining the features of a moose, wolf, chicken and pig. And who could forget such discontinued classics as French Toast Crunch or Pop-Tarts Crunch? If you feel like taking a walk down memory lane, let us know in the comments which discontinued cereal you'd love to eat again.

5 Best Canadian Stocks To Invest In Right Now

Whenever someone makes a projection that's more than 15 years out, you have to take it with a grain of salt. Even if you were to give a large margin of error to Canadian oil production estimates, it still appears that they are overreaching. The most recent estimate from the Canadian Association of Petroleum Producers says that Canada will double its oil production by 2030, with oil sands being the driving force behind it.

Just as it may be a stretch to estimate oil production 15 years from now, it would be just as silly to say that those estimate could never come true. To make them happen, though, there are several hurdles that Canadian oil sands will need to overcome if they ever hope to meet these lofty goals. In this video, Fool.com contributors Tyler Crowe and Aimee Duffy look at some of the major political and operational issues that will need to be addressed before Canada can live up to CAPP's projections.�

5 Best Canadian Stocks To Invest In Right Now: Canadian National Railway Company(CNI)

Canadian National Railway Company, together with its subsidiaries, engages in the rail and related transportation business in North America. It provides transportation for various goods, including petroleum and chemicals, grain and fertilizers, coal, metals and minerals, forest products, and intermodal and automotive products. The company operates a network of approximately 20,600 route miles of track that spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico. It serves the ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama), as well as metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth (Minnesota)/Superior (Wisconsin), Green Bay (Wisconsin), Minneapolis/St. Paul, Memphis, and Jackson (Mississippi), with connections to various points in North America. The company was founded in 1922 and is headquartered in Montreal, Canada.

Advisors' Opinion:

• [By Vodicka]

  Montreal-based Canadian National Railway (CNI) operates
  about 21,000 route-miles of rail that span all the way from the frozen north down to the Mississippi Delta — nearly enough track to wrap around the entire world. Since Canada is one of the largest countries in the world by geography (second only to Russia with an area of about 4 million square miles), the transportation and freight industries are vital and very lucrative parts of the nation’s economy.

  The reason I’m so bullish on CNI right now is that the company is a large player in transporting commodities, including Canada’s exports of timber and metals and imports of energy from the United States. In Canadian National’s latest earnings report in January, the company stated that Q4 shipments grew for coal, grain and fertilizers and petroleum and chemicals — and this is in spite of bad weather and a five-day strike that really messed with CNI’s schedule. Just imagine how CNI will do in the warmer months as the economy continues to improve.

5 Best Canadian Stocks To Invest In Right Now: SAP AG(SAP)

SAP AG provides business software primarily in Europe, the Middle East, Africa, the Americas, and the Asia Pacific Japan region. The company?s products includes SAP Business Suite software, which supports large organizations in their core business operations, such as supplier relationship, production, warehouse management, sales, administration, and customer relationship; SAP Business All-in-One, a business management software that assists midsize companies in managing various business functions, including financials, human resources, procurement, inventory, manufacturing, logistics, product development, sales, and marketing; SAP Business One, a business management application for small businesses; and SAP Business ByDesign, an on-demand solution for integrated business management applications. Its products also comprises SAP BusinessObjects Edge business intelligence and enterprise performance management solutions; Xcelsius, a data visualization software; Crystal Reports, which helps users design interactive reports; Sybase IQ, an optimized analytics server designed to deliver results for business intelligence, analytics, data warehousing, and reporting solutions; SAP solutions for sustainability; and SAP NetWeaver technology platform, which integrates information and business processes across various technologies and organizational structures. In addition, the company offers industry and solution-focused, business transformation, information technology transformation, custom development, and support services; and program, project management, quality assurance, and education and certification services. It sells its products through its subsidiaries and resellers. SAP AG has a strategic relationship with Cap Gemini S.A. to develop and deploy enterprise mobility solutions. The company was formerly known as SAP Aktiengesellschaft Systeme, Anwendungen, Produkte in der Datenverarbeitung. SAP AG was founded in 1972 and is headquartered in Walldorf , Germany.

Best Stocks To Invest In Right Now: Valeant Pharmaceuticals International Inc(VRX)

Valeant Pharmaceuticals International, Inc., a specialty pharmaceutical company, develops, manufactures, and markets pharmaceutical products in the areas of neurology, dermatology, and branded generics. It offers Wellbutrin XL to treat depressive disorders; Xenazine to treat chorea associated with Huntington?s disease; CeraVe to rebuild and repair skin barrier; and Kinerase, a cosmetic product. The company also provides Zovirax ointment to treat initial genital herpes; Xerese to treat recurrent herpes labialis; Elidel to treat atopic dermatitis; and Acanya and Atralin gels to treat acne vulgaris. In addition, it offers Cesamet to treat nausea and vomiting associated with cancer chemotherapy; Tiazac XC to treat hypertension and angina; Wellbutrin to treat depressive illness; Sublinox to treat insomnia; and Lodalis to treat hypercholesterolemia. Further, the company provides Cold-FX to strengthen immune system; Duromine/Metermine for weight loss; Difflam to treat sore throa ts; and Duro-Tuss and Rikodeine to treat dry and chesty cough, as well as various branded generics for treatments, including antibiotics, treatments for cardiovascular and neurological diseases, antifungal medications, and diabetic therapies. Additionally, it offers Bisocard to treat hypertension and angina pectoris; Flucinar, a corticosteroid ointment; and Sachol mouth ulcer gel; Bedoyecta to treat neurotic pain; M.V.I., a hospital dietary supplement for trauma and burns; Tandene to treat fever and headache; Melleril to treat anxiety and depression; and products for therapeutic classes, such as vitamin deficiency, antibacterials, and dermatology. It markets its products in the United States, Canada, Australia, New Zealand, Europe, Latin America, southeast Asia, and South Africa. The company was formerly known as Biovail Corporation and changed its name to Valeant Pharmaceuticals International, Inc. in September 2010. The company was founded in 1960 and is headquartered in M ississauga, Canada.

Advisors' Opinion:

• [By ETF Authority]

  Valeant Pharmaceuticals(VRX) is a specialty pharmaceutical company, designing drugs for central nervous system disorders. It also has an over-the-counter business in Australia and branded drug operations in Latin America and Eastern Europe.

  Potiga, an epilepsy medication, is in the final stage of approval and expected to launch in the U.S. and Europe in 2011. Jefferies boosted its price target for Valeant to $50 on Jan. 7, following the company's 2011 guidance, which entailed expectation of a substantially lower tax rate for the full-year 2011.

  Jefferies expects the stock to garner much attention in 2011 on mergers and acquisition deals and continued above-peer growth rates. Valeant's stock has delivered annualized gains of 39% over a three-year span. It is not an equity without risk, though. The company suffered a GAAP loss of $208 million, or $1.27 a share, in the third quarter. Furthermore, it sells for a cash flow multiple of 21, a 68% premium to the pharmaceutical industry average. Failure to achieve expected costs synergies from the Biovail merger is a risk.

  Bullish Scenario: Jefferies expects Valeant to climb 25% to $50.

  Bearish Scenario: Goldman Sachs forecasts a fall of 13% to $34.

5 Best Canadian Stocks To Invest In Right Now: Safeway Inc.(SWY)

Safeway Inc., together with its subsidiaries, operates as a food and drug retailer in North America. The company operates stores that provide an array of grocery items, food, and general merchandise, as well as features specialty departments, such as bakery, delicatessen, floral, and pharmacy, as well as coffee shops and fuel centers. It also offers SELECT line of products that include baked goods, sparkling ciders and lemonades, salsas, whole bean coffees, frozen pizzas and entrees, and fresh and dry pastas and sauces, as well as an array of ice creams, hors d'oeuvres, and desserts; O ORGANICS line, which comprises milk, chicken, salads, juices, and entrees; Lucerne line of dairy products; Eating Right line of better-for-you products; Bright Green line of home care products; Total Pet Care line of pet foods and pet care products; and Value Red line of value-priced paper goods. As of December 31, 2009, Safeway operated approximately 1,725 stores in California, Oregon, Wash ington, Alaska, Colorado, Arizona, Texas, the Chicago metropolitan area, and the Mid-Atlantic region, as well as British Columbia, Alberta and Manitoba/Saskatchewan. In addition, the company owns and operates GroceryWorks.com Operating Company, LLC, an online grocery channel, doing business under the names Safeway.com, Vons.com, and Genuardis.com; and Blackhawk Network Holdings, Inc., which provides third-party gift cards, prepaid cards, telecom cards, and sports and entertainment cards to North American retailers for sale to retail customers. Additionally, it engages in gift card businesses in the United Kingdom, France, Mexico, and Australia. Further, the company, through a 49% ownership interest in Casa Ley, S.A. de C.V. operates 156 food and general merchandise stores in Western Mexico. The company was formerly known as Safeway Stores, Incorporated and changed its name to Safeway Inc. in February 1990. Safeway was founded in 1915 and is based in Pleasanton, California.

5 Best Canadian Stocks To Invest In Right Now: Nu Skin Enterprises Inc.(NUS)

Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements worldwide. The company sells its personal care products under the Nu Skin brand; and nutritional supplements under the Pharmanex brand. Its personal care product line includes core systems, targeted treatments, total care, cosmetic, and Epoch, a product formulated with botanical ingredients. The company?s nutritional supplements product line comprises micronutrient supplements, targeted solution supplements, and weight management products. It also sells Vitameal, which are nutritious meal products for starving children or purchased for personal food storage. In addition, the company offers other products and services consisting of digital content storage, water purifiers, and other household products. It sells its products primarily through a network of independent distributors in north Asia, the Americas, Greater China, Europe, and the south Asia/Pacific. The c ompany also operates retail stores to sell its products in China. As of December 31, 2010, Nu Skin Enterprises operated 40 stores throughout China. The company was founded in 1984 and is headquartered in Provo, Utah.

Top 10 Small Cap Companies To Own In Right Now

Cumberland Pharmaceuticals (CPIX) is a small cap pharmaceutical company that already has three drugs on the market. One thing that makes it stand out from many other companies with its market cap is the fact that Cumberland is already profitable. Cumberland's extension of the distribution agreement with Cardinal Health is important to helping to continue to drive revenue growth out of Cumberland's current pipeline. Cumberland's three drugs have the potential to grow even more over the long term, and Cumberland is attempting to build a pipeline that will allow for even more long term oriented growth. Cumberland appears to be a solid value for long term oriented shareholders.

Acetadote

Cumberland's biggest drug by far is its drug Acetadote. In recent years, however, it has had some trouble making sure that it is patented. The original patents were set to expire, so Cumberland even reformulated Acetadote, which allowed for more patent protection, and subsequently to protect its key product. A key event happened recently when CPIX announced a settlement with generic drug makers Paddock and Perrigo, that they will not attempt to challenge CPIX's patents on Acetadote again until 2026. This is important, as Acetadote is responsible for a large amount of CPIX's revenue.

Top 10 Small Cap Companies To Own In Right Now: China Metro-Rural Holdings Limited(CNR)

China Metro-Rural Holdings Limited, through its subsidiaries, primarily engages in the development and operation of agricultural logistics and trade centers in northeast China. It also involves in purchasing, processing, assembling, merchandising, and distributing pearls and jewelry products. The company markets its pearls and jewelry products to wholesale distributors and mass merchandisers in Europe, the United States, Hong Kong, and other parts of Asia. In addition, it develops, sells, and leases residential and commercial properties in Hong Kong and the People?s Republic of China. The company is based in Tsimshatsui, Hong Kong.

Advisors' Opinion:

• [By Wyatt Research Staff]

  The stock moved significantly higher in mid-January and traded in a fairly tight range ever since. However, that could change soon. China's agricultural exports to Japan will grow if radiation continues to seep into the food chain.

  China exported $593 million worth of agricultural goods to Japan last year.

Top 10 Small Cap Companies To Own In Right Now: OCZ Technology Group Inc(OCZ)

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

Advisors' Opinion:

• [By Wyatt Research]

  The maker of solid state drives for computers reported revenue more than doubled and posted adjusted net income of 1 cent per share. It predicted a full-year revenue rise of at least 65 percent. The share price has jumped 210 percent in the past year.

Top Stocks For 2014: Texas Instruments Incorporated(TXN)

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

Advisors' Opinion:

• [By Paul Goodwin]  

  How do they make their money? TXN makes the PA Duplexer Module and the CDMA PA that goes into every iPhone. With a PEG ratio of 0.2 reveals huge discount compared to peers. This is a cash rich company and one I feel will be a strong performer within the next year.

Top 10 Small Cap Companies To Own In Right Now: Panera Bread Company(PNRA)

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

Advisors' Opinion:

• [By Roberto Pedone]

  One casual dining player that insiders are active in here is Panera Bread (PNRA), which is a national bakery-cafe concept with 1,652 company-owned and franchise-operated bakery-cafe locations in 44 states, the District of Columbia and Ontario, Canada. Insiders are buying this stock into modest strength, since shares are up 5.2% so far in 2013.

  Panera Bread has a market cap of $4.8 billion and an enterprise value of $4.5 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings of 26.28 and a forward price-to-earnings of 21.32. Its estimated growth rate for this year is 15.8%, and for next year it's pegged at 15.1%. This is a cash-rich company, since the total cash position on its balance sheet is $341.06 million and its total debt is zero.

  The CFO just bought 1,500 shares, or about $252,000 worth of stock, at $168.58 per share.

  From a technical perspective, PNRA is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock recently gapped down big from $187.50 to its low of $165.55 a share with heavy downside volume. That move has now pushed shares of PNRA into oversold territory, since its current relative strength index reading is 25.59. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful rebound higher from.

  If you're bullish on PNRA, then look for long-biased trades as long as this stock is trending above some key near-term support at $165.55, and then once it breaks out above some near-term overhead resistance levels at its 200-day of $171.33 a share to more resistance at $172.50 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 439,019 shares. If that breakout triggers soon, then PNRA will set up to re-fill some of its previous gap down zone that started at $187.50 a share. Some possible upside targets if PNRA gets into that gap with volume are $175 to $180 a share.

• [By Fabian]  

  Most of you have probably eaten at one of these franchise bakery-cafes. If not I highly recommend it, as for the company itself they are exceptional. Profit soared 50% in the first quarter, operating margins rose several percentage points, and Panera is sitting on $300+ million of cash. Right now it’s at a 30% discount to its peer averages and the stock is very cheap when valued against future earnings. Strong buy expect it to rise to $105.

Top 10 Small Cap Companies To Own In Right Now: bebe stores inc.(BEBE)

bebe stores, inc. engages in the design, development, and production of women?s apparel and accessories. Its products include a range of separates, tops, dresses, active wear, and accessories in career, evening, casual, and active lifestyle categories. The company markets its products under the bebe, BEBE SPORT, bbsp, and 2b bebe brand names targeting 21 to 34-year-old woman. As of July 2, 2011, it operated 252 retail stores, and an online store at bebe.com in the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Japan, and Canada, as well as 60 international licensee operated stores in south east Asia, the United Arab Emirates, Israel, Russia, Mexico, and Turkey. The company was founded in 1976 and is headquartered in Brisbane, California.

Advisors' Opinion:

• [By Wyatt Research]

  The women's apparel retailer reported fiscal fourth-quarter sales and same-store sales both rose 7 percent. The stock is up 30 percent year-to-date.

Top 10 Small Cap Companies To Own In Right Now: Achillion Pharmaceuticals Inc.(ACHN)

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

Advisors' Opinion:

• [By Brian Nichols]

  Achillion is an odd play because it has both the most upside and the most downside of any stock on this list. The company's developing and testing its hepatitis C treating drug, ACH-1625, which is currently in phase II. The results of initial testing have consisted of ups and downs, but after many years and a long process, ACH-1625, appears to be on the right track for an FDA approval.

  The upside in shares of ACHN comes from two places: encouraging data from trials and its likelihood of being acquired. In my opinion, ACHN has a very high chance of being acquired in the next 6 months. Both Pharmasset (VRUS) and Inhibitex (INHX) were acquired over the last 5 months with insanely large premiums. VRUS was purchased at a 81% premium and INHX for a 182% premium. ACHN is perhaps the most speculative, but it could also be purchased the cheapest.

  The stock's recently pulled back after a downgrade and is trading much lower over the last couple weeks. The stock's trend reminds me so much of INHX; the month following the VRUS acquisition when INHX traded higher by nearly 300%. But then after the one-month gain, INHX lost its momentum and traded lower by 40% before being acquired with a 182% premium. INHX traded higher after the VRUS purchase because investors thought it would also be acquired, because of its hepatitis C candidate. ACHN is following the same trend, from November 12 till January 13 the stock more than doubled, but has since retraced.

  At $10 I think ACHN is a buy, it does have a good HCV candidate, and I believe that big pharma will bid to acquire ACHN in the near future. However, the risk in ACHN is if the company's not acquired, then it could have significant loss over the next year. But in a competitive biotechnology industry I believe the reward is worth the risk, and that a large pharma company will take the chance and purchase ACHN in an attempt to stay competitive and capitalize on the trend of investors being bullish on HCV treating drugs.

Top 10 Small Cap Companies To Own In Right Now: OmniVision Technologies Inc.(OVTI)

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

Advisors' Opinion:

• [By Karim]  

  They make the 5-megapixel sensors in the camera of every iPhone. Along with this they carry a strong balance sheet and upbeat earnings expectations boding well for future growth.

Top 10 Small Cap Companies To Own In Right Now: InterDigital Inc.(IDCC)

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

Advisors' Opinion:

• [By SmallCap Investor]

  The wireless technology company said it's exploring its options, including a possible sale, following last month's successful auction of Nortel Networks intellectual property which brought in $4.5 billion. IDCC owns about 1,300 patents related to mobile phone technology.

• [By CRWE]

  InterDigital, Inc. (NASDAQ:IDCC) reported that certain of its subsidiaries have completed the previously announced sale of roughly 1,700 patents and patent applications to Intel Corporation for $375 million in cash.

Top 10 Small Cap Companies To Own In Right Now: ATA Inc.(ATAI)

ATA Inc., through its subsidiaries, provides computer-based testing services in the People?s Republic of China. It offers services for the creation and delivery of computer-based tests utilizing its test delivery platform, proprietary testing technologies, and testing services; and provides logistical support services relating to test administration. The company?s computer-based testing services are used for professional licensure and certification tests in various industries, including information technology (IT) services, banking, securities, teaching, and insurance. Its e-testing platform integrates various aspects of the test delivery process for computer-based tests ranging from test form compilation to test scoring, and results analysis. ATA also provides career-oriented educational services, such as single course programs, degree major course programs, and pre-occupational training programs focusing on preparing students to pass IT and other vocational certification tests; test preparation and training programs and services to test candidates preparing to take professional certification tests in securities, futures, banking, insurance and teaching industries; online test preparation and training platform for the securities and banking industries; and test preparation software for the teaching industry. In addition, the company offers HR select employee assessment solution, an online system that utilizes its proprietary software and an inventory of test titles to help employers improve the efficiency and accuracy of their employee recruitment process. As of March 31, 2010, it had contractual relationships with 1,988 ATA authorized test centers. The company serves Chinese governmental agencies, professional associations, IT vendors, and Chinese educational institutions, as well as individual test preparation services. ATA Inc. was founded in 1999 and is based in Beijing, the People?s Republic of China.

Advisors' Opinion:

• [By Wyatt Research Staff]

  The Chinese-based educator spiked higher recently after it exceeded analysts' expectations. Revenue and adjusted earnings soared 78% and 269%, respectively. Its long-term annual growth rate is 15%.

  Analysts at Zacks Investment Research upgraded shares from "neutral" to "outperform". 

Top 10 Small Cap Companies To Own In Right Now: Sify Technologies Limited(SIFY)

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

• [By Wyatt Research Staff]

  Shares of SIFY skyrocketed last week after the company announced a new partnership with Saudi telecom. SIFY will provide ICT services to the Middle East's largest telecom carrier.

  Shares of the Indian-based internet and network services have doubled over the past four months.