Beware High-Speed Trading’s Hidden Cost: Seawright

Financial advisors may be getting a few phone calls from concerned clients this week after a 60 Minutes report on CBS Sunday night asking whether the U.S. stock market is rigged.

The broadcast interviewed bestselling author Michael Lewis on his new book, Flash Boys, the story of three Wall Street professionals who independently discover how the market is rigged by high-frequency traders and band together to fight the exchanges exploiting ordinary investors. The book is also excerpted in today’s New York Times Magazine.

The book and the high-level media attention it’s getting has already provoked governmental reaction. The Securities and Exchange Commission says it is engaged in an “ongoing review,” and New York State’s attorney general, Eric Schneiderman, had this to say on Bloomberg Television this morning:

“There are some things here that may be illegal. There are some things that may now be legal that should be illegal or that the markets have to be changed. So part of what we're doing here in addition to looking for illegality is shining a light on this area."

For perspective on an issue that directly impacts all advisors and their clients, ThinkAdvisor reached out to Bob Seawright.

The chief investment officer of San Diego-based broker-dealer Madison Avenue Securities is one of the industry’s genuine thought leaders, a widely read blogger and a regular contributor to Research Magazine and ThinkAdvisor. True to form, Seawright, who has previously written on high-frequency trading, had seen the broadcast, read the book excerpt and said Lewis’ new book was expected in today’s mail.

ThinkAdvisor: Some commentators are saying there’s nothing new under the sun — the market has always been rigged to some extent so get over it.

Seawright: I understand that argument but I think it’s wrong because people in my position and our clients should be extremely unhappy with the various exchanges and the exchanges’ willingness to sell investors as a whole down the river for the sake of the trading volume created by the high-frequency people.

It’s a lot of cash in the exchanges’ pockets, and it’s cash coming out of the pockets of everybody else.

ThinkAdvisor: Should ordinary clients forgo investing?

Seawright: No. For the average mom and pop, it is costing a few cents a year; the biggest conglomerate investment houses stand to lose a lot more.

ThinkAdvisor: So in a sense, ordinary investors are barely harmed by this latest Wall Street scandal?

Seawright: That’s the insidious part of it. It’s not something that you readily see. You hit enter on your order and you get filled in part or filled at two different prices and the assumption always was, “Well, that’s where the market was.’

And the reality is that is where the market was, but the market was there because somebody stepped in between really, really fast.

For retail shops like ours it’s not a [significant] issue because our orders aren’t big enough that’s somebody’s going to step in front of them. If somebody’s buying 100 shares of something, there’s not enough money to be made stepping in front.

But when a client owns a mutual fund, and the mutual fund is trading shares, and somebody steps in front of that, it matters significantly to the portfolio as a whole, and by extension it matters to some extent to investors: 2 cents a share is a rounding error, and I get that.

On the other hand, the high-frequency trading firms are spending hundreds of millions of dollars to get another couple milliseconds of an advantage. Clearly it’s a real advantage to them, and that money’s coming from somewhere. That money is coming out of our clients, mutual fund clients and everybody else that’s involved in the market, and that ought to concern all of us.

ThinkAdvisor: So what can market participants do to overcome this unfair advantage?

Seawright: IEX [the new firm created by the heroes of Lewis’ book] is designed to take the speed advantage out of the market. You can always trade on the IEX to deal out the high-frequency people and we can [respond] as an industry to try to ameliorate the problem.

IEX is a new exchange. Goldman Sachs is an early adopter and before long people like us will be able to, as a practical matter, be able to direct substantially all of our business to the exchange.

I’m meeting with my traders today to talk about what we can do to make sure our clients get the maximum level of protection.

We’re doing what we can to mitigate the problem for our clients. I wish it would be as easy as to just flip a switch and be able to change what we do instantly.

But it’s going to happen to the extent it hasn’t already. Ultimately I think it’ll happen because there is no argument for letting somebody step in front of you.

ThinkAdvisor: The high-frequency traders say they are playing a valuable role bringing extra liquidity to the market.

Seawright: I haven’t seen a lick of evidence of this. If I put an order in and somebody legally front-runs it because they have a faster connection, the only people who benefit are the exchange and the high-frequency trader who got in front. I don’t see any benefit in that category of investor hanging around. That’s not investing, and it’s not even trading. It’s simply having an enormous information advantage … that can only be exploited with enormously expensive computing power.

Some say if there’s a way to exploit market inefficiencies, more power to them. I say you can’t trade on inside information ever. If you’re an insider at a company you can only trade at certain periods … It’s like my getting access to someone else’s company report before anyone else allowing me to trade on it.

ThinkAdvisor: Sounds like a pretty good gig if you can get it.

Seawright: The great thing about high-frequency traders is if you’ve read some of the press reports about them, they all pretty much make money every month.

If you make money all the time, you must have a particular advantage, and in this case it’s an information advantage. If you’re trading on an information advantage and you’re always winning and … the exchanges have decided it’s perfectly legal, why wouldn’t you do it?

You’d spin it the way they have: It’s providing liquidity. Who doesn’t like liquidity?

The [increased] attention placed on this by the industry press is a really good thing.

---

By Bob Seawright on ThinkAdvisor:

What's Good For Facebook and Pandora Is Bad for Google and Apple

In the age of mobile ads, the heavyweights are losing the upper hand. According to a recent report from IDC, the mobile display ad market is being taken over by publishers like Facebook (NASDAQ: FB  ) , Pandora Media (NYSE: P  ) , and Twitter. That's good news for those companies, and bad news for incumbent ad networks from Google (NASDAQ: GOOG  ) , Millennial Media (NYSE: MM  ) , and Apple (NASDAQ: AAPL  ) .

Overall mobile ad spending continues to rise, jumping 88% in 2012 to $4.5 billion. IDC pegs Facebook as the top mobile display ad seller with $234 million in gross revenue. Pandora follows that with $229 million, with Twitter ranking third at $117 million.

Facebook had zero mobile ad sales in 2011, but made a big push into mobile ads in 2012 starting with Sponsored Stories. Anyone paying attention to the social network's enormous IPO is likely well aware of the criticisms at the time that Facebook lacked a mobile monetization strategy. That's changed by now, and Mark Zuckerberg is on a mission to dispel the myth that Facebook can't navigate the mobile transition.

Top 5 Bank Stocks To Buy For 2014

Pandora's free ad-supported service has been around a long time, but only recently did the online radio streamer go public. However, Pandora's costs scale up alongside revenue, making it much more difficult for it to put up a profit compared to the social network.

Within the ad network market, Google remains top dog with an estimated $243 million in revenue last year. Millennial Media, who also went public in 2012, overtook Apple for second place. Millennial generated $151 million in sales, topping Apple's $125 million.

Google naturally still owns the mobile search ad market, with $2.2 billion in revenue and a 79% market share, but none of the aforementioned rivals meaningfully competes in search.

However, Apple doesn't care too much about its iAd network relative to its core device business. The Mac maker made it clear from the beginning that iAd's whole purpose was to help developers offer free apps by providing an alternative method of monetization.

The new guys on the mobile ad block are chipping away at the incumbent heavyweights.

As one of the most dominant Internet companies ever, Google has made a habit of driving strong returns for its shareholders. However, like many other web companies, it's also struggling to adapt to an increasingly mobile world. Despite gaining an enviable lead with its Android operating system, the market isn't sold. That's why it's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.

6 Internet and Web Service Stocks to Buy Now

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The grades of six internet and web service stocks are on the rise this week on Portfolio Grader. Each of these stocks is rated an “A” (“strong buy”) or “B” overall (“buy”).

This week, Commtouch Software Ltd () is showing significant improvement as the company’s rating hops from a C (“hold”) to a B (“buy”). Commtouch Software provides messaging, antivirus, and Web security solutions to OEM customers, enterprises, and service providers primarily in Israel, North America, Europe, and Asia. In Portfolio Grader’s specific subcategory of Sales Growth, CTCH also gets an A. .

Top 5 Healthcare Equipment Stocks To Watch Right Now

This week, Akamai Technologies, Inc.’s () ratings are up from a C last week to a B. Akamai Technologies provides services for accelerating and improving the delivery of content and applications over the Internet. .

IntraLinks Holdings, Inc. () improves from a C to a B rating this week. IntraLinks Holdings provides Software-as-a-Service solutions for managing content, exchanging business information and collaborating within and among organizations. .

Sohu.com, Inc. () is seeing ratings go up from a C last week to a B this week. Sohu.com is an Internet media company that serves as a daily source of information, communication and entertainment for millions of Chinese consumers. .

OpenTable, Inc. () earns a B this week, jumping up from last week’s grade of C. OpenTable provides free, real-time online restaurant reservations for diners through an online booking service. .

Jiayuan.com International Ltd. Sponsored ADR’s () ratings are looking better this week, moving up to a B from last week’s C. Jiayuan. com International is an online Chinese dating company. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

The Intellicheck Mobilisa Pendulum is Ready to Swing the Other Way Again (IDN)

Just for the record, yes, I was the same guy who two days ago was telling you to bail out of Intellicheck Mobilisa, Inc. (NYSEMKT:IDN), locking in whatever gain you could on the falling stock while there was a gain to be hand. So why am I calling IDN a buy now? Because my bearish worries were from two days ago... a lifetime, in trading terms.

As a reminder, Intellicheck Mobilisa makes security software for mobile devices. The big runup through the end of Monday (a 225% rally in less than two months) was leading right up to earnings news that was unveiled on Monday after the close. Almost needless to say, the market was disappointed with what it heard. What does need to be voiced, however, is the reality that IDN shares were doomed no matter what last quarter looked like. When you're sitting in the shadow of more than a 200% rally in less than two months, any would-be buyers are already in; there are no buyers left. And, with people paying the kinds of crazy prices they were paying during the latter half of the rally, there's no way to argue that expectations weren't wildly high. That's what they paid what they paid for Intellicheck Mobilisa. In retrospect, it was obviously a big mistake. Shares opened the next day well in the red, and proceeded to sink further, all the way to today's low of $0.88... from Monday's peak of $1.79. Ouch.

If the $0.88 seems familiar, it may be because that's where yours truly suggested IDN would find support and likely begin a reversal. [I actually said $0.87, but I'm willing to budge a little.] And as you can see on the chart below, the reason I pegged that line as a big one is because it's been support as well as resistance lately. That's not about to change now.

So what? The "so what" is, the Intellicheck Mobilisa, Inc. pullback seems to have run its course. It's a buy again today, as the overreaction from the sellers has set up a good possibility of a bounce from here.

And for what it's worth, this was never about - and still isn't - the company's fundamental performance. This is about the disconnect between IDN (the stock) and Intellicheck Mobilisa (the company). The triple-digit rally should have never happened, and the subsequent pullback wouldn't have been so harsh had the big rally not materialized. Now that the stock has shaken off all the excess - in both directions - it can get back on track and start to reflect its underlying value again. With a floor establish are $0.88, that should mean tempered bullishness ahead. It's reasonably safe to wade back in.

For more trading ideas and insights like these, be sure to sign up for the free SmallCap Network newsletter. You'll get stock picks, market calls, and more, every day. Here's what you've missed recently.
 

Best Building Product Companies To Watch For 2014

You don’t have to go door to door to find dismal news about Avon (AVP) today. Between the stock tanking over 20% and the company�� announcements of a weak third-quarter topped with news that federal regulators are increasing the penalties to resolve its ongoing bribery probe, it�� one ugly afternoon for the beauty product and cosmetics company.

The Wall Street Journal�� Serena Ng and Anna Prior recapped Avon�� woes nicely this afternoon:

The government’s position, disclosed by Avon in a regulatory filing, adds another big weight on a company already struggling to turn around a string of poor results. On Thursday, the door-to-door seller of makeup and consumer products reported a third-quarter loss following a steep drop in sales in the U.S. and China.

Regarding the bribery probe, the WSJ writes:

Best Building Product Companies To Watch For 2014: Morgans Hotel Group Co.(MHGC)

Morgans Hotel Group Co., a hospitality company, engages in the acquisition, ownership, operation, development, and redevelopment boutique hotels, nightclubs, restaurants, bars, and other food and beverage venues. It has operations primarily in the United States, Europe, and internationally. The company was incorporated in 2005 and is based in New York, New York.

Advisors' Opinion:

• [By Roberto Pedone]

  Morgans Hotel Group (MHGC) operates, owns, acquires, develops and redevelops boutique hotels, primarily in gateway cities and select resort markets in the U.S., Europe and other international locations and nightclubs, restaurants. This stock closed up 3.8% to $6.99 in Tuesday's trading session.

  Tuesday's Range: $6.73-$7.06
  
  52-Week Range: $4.66-$8.15
  
  Tuesday's Volume: 388,000
  
  Three-Month Average Volume: 196,219

  From a technical perspective, MHGC spiked higher here right above its 200-day moving average of $6.45 with above-average volume. This move is quickly pushing shares of MHGC within range of triggering a near-term breakout trade. That trade will hit if MHGC manages to take out Tuesday's high of $7.06 and then once it takes out more near-term resistance at $7.20 with high volume.

  Traders should now look for long-biased trades in MHGC as long as it's trending above its 200-day at $6.41 and then once it sustains a move or close above those breakout levels with volume that hits near or above 196,219 shares. If that breakout triggers soon, then MHGC will set up to re-test or possibly take out its next major overhead resistance levels at $8 to its 52-week high at $8.15. Any high-volume move above those levels will then give MHGC a chance to tag its next major overhead resistance levels at $9 to $10.

Best Building Product Companies To Watch For 2014: Pacific Biosciences of California Inc.(PACB)

Pacific Biosciences of California, Inc., a development stage company, develops, manufactures, and markets an integrated platform for genetic analysis. The company engages in developing a technology platform that enables single molecule, real-time (SMRT) for the detection of biological processes. It primarily focuses on the deoxyribonucleic acid sequencing market. The company?s product includes the PacBio RS, a sequencing platform, which consists of an instrument platform that uses its proprietary consumables, such as SMRT Cells and reagent kits. The company?s customers include genome centers, genomics service providers, and agricultural companies, as well as clinical, government, and academic institutions. Pacific Biosciences of California, Inc. was founded in 2000 and is headquartered in Menlo Park, California.

Advisors' Opinion:

• [By Geoff Gannon]

  1. Steel Excel (SXCL)
  2. FormFactor (FORM)
  3. Imation (IMN)
  4. Tuesday Morning (TUES)
  5. Pacific Biosciences (PACB)
  6. Maxygen (MAXY)
  7. Westell (WSTL)
  8. Volt Information Sciences (VISI)
  9. Yasheng Group (YHGG)

• [By Alex Planes]

  However, Fool biotech expert Brian Orelli points out one big caveat: Once sequencing companies make these tests accessible, margins may collapse beyond the ability of volume sales to make up the difference. At least Illumina (and Life Tech) are in the driver's seat on margins, as it's unlikely that lesser-funded sequencing competitors Affymetrix (NASDAQ: AFFX  ) and Pacific Biosciences (NASDAQ: PACB  ) can muster the resources to push out sequencing at cost-effective scale before their peers.

Best Clean Energy Stocks To Invest In 2014: TomTom NV (TMOAF.PK)

TomTom NV is the Netherlands-based supplier of location and navigation products and services. The Company�� offer includes maps, speed cameras, portable navigation devices (PND), fleet management services (FMS), and smart phone applications. It consists of four customer-facing segments: Consumer, Automotive, Business Solutions and Licensing. The Consumer segment is engaged in the sale of PNDs, speed cameras, maps and other related navigation services to end customers. Automotive sells in-dash navigation solutions, speed cameras, grade maps and services to companies in automotive segment, as well as PNDs for fitness products. The Business solutions segment provides fleet management services and solutions, such as fleet trackers, to fleet owners. Licensing sells digital maps, mobile applications and other content to customers within multiple market segments. The Company operates in over 35 countries worldwide. In July 2013, it acquired Coordina (Gestion Electronica Logistica, S.L.). Advisors' Opinion:

• [By Genesis Housing]

  Nokia's HERE division is worth E1bn assuming a similar market cap as TomTom (TMOAF.PK) but offers significant upside as maps become the next platform for e-commerce. Assuming Nokia's net cash position declines to E2bn at Q3 from E4.1bn in Q2 (given the E1.7bn NSN deal as well as incremental cash burn due to supporting product launches), the combined value of Nokia's Net Cash, HERE division and NSN division is in line with the current market cap of Nokia.

Best Building Product Companies To Watch For 2014: Molson Coors Brewing Company(TAP)

Molson Coors Brewing Company brews, markets, sells, and distributes beer brands. It sells its products in Canada, under the Coors Light, Molson, Rickard's Red, Carling, Pilsner, Keystone Light, Creemore Springs, and Granville Island brands. The company also brews or distributes products under license from third parties, which include Heineken, Amstel Light, Murphy's, Asahi, Asahi Select, Miller Lite, Miller Genuine Draft, Miller Chill, Milwaukee's Best, Milwaukee's Best Dry, and Foster's. In addition, it imports, distributes, and markets the Corona, Coronita, Negra Modelo, and Pacifico brands, through a joint venture agreement with Grupo Modelo. Further, the company sells various brands in the United States, which include Coors Light, Miller Lite, Coors Banquet, Miller Genuine Draft, MGD 64, Miller Chill, Sparks, Miller High Life, Miller High Life Light, Keystone Light, Icehouse, Mickey's, Milwaukee's Best, Milwaukee's Best Light, Old English 800, Blue Moon, Henry Weinhard 's, George Killian's Irish Red, Leinenkugel's, Peroni Nastro Azzurro, Pilsner Urquell, Grolsch, Coors Non-Alcoholic, and Sharp's. Additionally, it sells various brands in the United Kingdom comprising Carling, C2, Coors Light, Worthington's, White Shield, Caffrey's, Kasteel Cru, and Blue Moon, as well as various regional ale brands. The company also sells the Grolsch brands through a joint venture with Royal Grolsch N.V. and the Cobra brands through a joint venture called Cobra Beer Partnership Ltd.; and distributes brands sold under license, including Corona, Coronita, Negra Modelo, Pacfico, Singha, and Magners Draught Cider. In addition, it markets and sells Zima, Si'hai, Coors Gold, and Coors Extra brands to various international markets. The company was formerly known as Adolph Coors Company and changed its name to Molson Coors Brewing Company as a result of its merger with Molson Inc. in February 2005. Molson Coors Brewing Company was founded in 1873 and is headquartere d in Denver, Colorado.

Advisors' Opinion:

• [By Dan Caplinger]

  4 (tie). Colorado
  Colorado's beer excise taxes also come in at $0.08 per gallon, perhaps reflecting the importance of the Coors brand of Molson Coors (NYSE: TAP  ) to the state's overall economy. That's a trend you'll see elsewhere on the list, as well as with Massachusetts, which just barely missed the list at No. 7 and provides the headquarters for craft-brew specialist Boston Beer (NYSE: SAM  ) . Per-capita beer consumption of 30.9 gallons per year leaves Colorado at No. 20 nationwide.

Best Building Product Companies To Watch For 2014: Agnico-Eagle Mines Limited(AEM)

Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. The company primarily explores for gold, as well as silver, copper, zinc, and lead. Its flagship property includes the LaRonde mine located in the southern portion of the Abitibi volcanic belt, Canada. The company was founded in 1953 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Dan Caplinger]

  In the longer term, IAMGOLD could potential challenges from higher taxes on some of its holdings. The Canadian province of Quebec is considering changing the current 16% profit tax either to what amounts to a gross revenue tax or to a more progressive profit tax with higher rates on high-margin mining operations. Under current conditions, those taxes might not have much effect either on IAMGOLD or rivals Agnico-Eagle (NYSE: AEM  ) and Goldcorp (NYSE: GG  ) , both of which also have projects in the province, but it's hard to predict how a changes might affect future results if they take effect.

Best Building Product Companies To Watch For 2014: AeroCentury Corp (ACY)

AeroCentury Corp., incorporated on February 28, 1997, acquires used regional aircraft and engines for lease to foreign and domestic regional carriers. The Company�� portfolio of leased aircraft assets is managed and administered under the terms of a management agreement with JetFleet Management Corp. (JMC), which is an integrated aircraft management, marketing and financing business and a subsidiary of JetFleet Holding Corp (JHC).

As of March 31, 2013, the Company�� aircraft and aircraft engines, which were on lease or held for lease included Bombardier Dash-8-300, Fokker 100, Bombardier Dash-8-Q400, Fokker 50, General Electric CF34-8E5 engine, Saab 340B, Saab 340B Plus, deHavilland DHC-8-100, deHavilland DHC-6, Tay 650-15 engine, General Electric CT7-9B engine and Saab 340A. As of March 31, 2013, 14 of the Company�� assets, comprised of four Fokker 50 aircraft, three Saab 340B aircraft, four Fokker 100 aircraft, two Tay 650-15 engines and one General Electric CT7-9B engine, were off lease.

Advisors' Opinion:

• [By John Udovich]

  Yesterday around midday,�Netherlands based aviation leasing stock�AerCap Holdings N.V. (NYSE: AER) began surging on rumors and closed up 11.6%, meaning its probably time to take a closer look at those rumors along with aviation leasing peers like small caps or mid caps�Aircastle Limited (NYSE: AYR), Air Lease Corp (NYSE: AL), Fly Leasing Ltd (NYSE: FLY) and AeroCentury Corp (NYSEMKT: ACY).

Best Building Product Companies To Watch For 2014: DaVita HealthCare Partners Inc (DVA)

DaVita HealthCare Partners Inc., formerly DaVita Inc., incorporated on April 4, 1994, is a provider of dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD). As of December 31, 2011, the Company provided dialysis and administrative services through a network of 1,809 outpatient dialysis centers located in the United States throughout 43 states and the District of Columbia, serving a total of approximately 142,000 patients. It also provides acute inpatient dialysis services in approximately 900 hospitals and related laboratory services throughout the United States. In addition, as of December 31, 2011, it provided dialysis and administrative services to a total of 11 outpatient dialysis centers located in three countries outside of the United States. On September 2, 2011, the Company acquired CDSI I Holding Company, Inc., the parent company of dialysis provider DSI Renal Inc. In November 2011, the Company announced that its wholly owned European subsidiary, DV Care GmbH, acquired ExtraCorp AG. In January 2012, the Company acquired controlling interest in NephroLife. In September 2012, the Company announced that its new guest services contact center located in Centennial, Colorado was opened. On November 1, 2012, the Company announced the consummation of the merger of HealthCare Partners Holdings, LLC (HCP), with Seismic Acquisition LLC, a wholly owned subsidiary of the Company, with HCP as the surviving entity (the Merger). The Merger, HCP became a wholly owned subsidiary of the Company. In January 2013, the Company acquired nine dialysis centers from Fresenius Medical Care (FMC), provider of dialysis services and manufacturer of dialysis products.

During the year ended December 31, 2011, the Company acquired a total of 178 dialysis centers, eight of which were located outside of the United States, opened 65 new dialysis centers, sold two centers, merged seven centers, and divested a total of 30 dialysis cent! ers in connection with the acquisition of DSI. It also added three dialysis centers under management and administrative service agreements that are located outside of the United States and added one center in which the Company owns a minority equity interest. The Company�� United States dialysis and related laboratory services business accounts for approximately 93% of its consolidated net operating revenues. Its other ancillary services accounted for approximately 7% of its consolidated net operating revenues during the year ended December 31, 2011.

Dialysis and Related Lab Services

As of December 31, 2011, the Company operated or provided administrative services through a network of 1,809 outpatient dialysis centers located in the United States and 11 outpatient dialysis centers located outside the United States that are designed specifically for outpatient hemodialysis. Many of the Company�� outpatient dialysis centers offer certain support services for dialysis patients who prefer and are able to perform either home-based hemodialysis or peritoneal dialysis in their homes. Home-based hemodialysis support services consist of providing equipment and supplies, training, patient monitoring, on-call support services and follow-up assistance. Registered nurses train patients and their families or other caregivers to perform either home-based hemodialysis or peritoneal dialysis.

As of December 31, 2011, the Company provided hospital inpatient hemodialysis services, excluding physician services, to patients in approximately 900 hospitals throughout the United States. It renders these services for a contracted per-treatment fee that is individually negotiated with each hospital. When a hospital requests the Company�� services, the Company administers the dialysis treatment at the patient�� bedside or in a dedicated treatment room in the hospital, as needed. In 2011, hospital inpatient hemodialysis services accounted for approximately 4.5% of its total United S! tates dia! lysis treatments. The Company owns two licensed clinical laboratories, which specialize in ESRD patient testing. These laboratories provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients. Its laboratories provide these tests primarily for its network of ESRD patients throughout the United States. These tests are performed to monitor a patient�� ESRD condition, including the adequacy of dialysis, as well as other medical conditions. During 2011, it operated or provided management and administrative services to 33 outpatient dialysis centers located in the United States and three outpatient dialysis centers located outside of the United States, in which it either owns a minority equity investment or are wholly owned by third parties. These services are provided pursuant to management and administrative services agreements.

Ancillary services and strategic initiatives

DaVita Rx is a pharmacy that provides oral medications to DaVita�� patients with ESRD. HomeChoice Partners provides personalized infusion therapy services to patients typically in their own. Intravenous and nutritional support therapies are typically managed by registered and/or board-certified professionals, including pharmacists, nurses and dieticians in collaboration with the patient�� physician in support of the patient�� ongoing health care needs. VillageHealth provides advanced care management services to health plans and Government agencies for employees/members diagnosed with Chronic Kidney Disease (CKD) or ESRD. Lifeline provides management and administrative services to physician-owned vascular access clinics that provide surgical and interventional radiology services for dialysis patients. Lifeline also is the owner of one vascular access clinic. DaVita Clinical Research conducts research trials principally with dialysis patients and provides administrative support for research conducted by DaVita-affiliated nephrology practices. DaVita Neph! rology Pa! rtners offers practice management and administrative services to physicians who specialize in nephrology. Practice management and administrative services include operations management, information technology support, billing and collections, credentialing and coding, and other support functions.

The Company competes with Fresenius Medical Care.

Advisors' Opinion:

• [By Johanna Bennett]

  Dialysis provider DaVita Healthcare Partners (DVA) soared almost 8.9% to close at $61.55 after the market learned that Medicare funding cuts would come in lower than expected. Rival Fresenius Medical Care (FMS) rose 7.2% on the same news.

AllianceBernstein: Classic Value

Hot Blue Chip Stocks To Watch Right Now

This featured recommendation is a classic value stock; the company is a leading global investment management firm structured as a master limited partnership, explains J. Royden Ward, editor of Cabot Benjamin Graham Value Investor.

AllianceBernstein Holding LP (AB) offers high quality research and diversified investment services to institutional investors and private clients in major global markets. The company is one of the largest US investment advisors, with assets under management totaling $445 billion, as of January 31.

AllianceBernstein significantly increased its size with the October 2000 acquisition of Sanford Bernstein, a leading US-based, value-oriented investment manager, for $3.5 billion in cash and stock.

France-based AXA owns 64% of AllianceBernstein LP. One-third of AB's assets under management belong to clients domiciled outside the US.

AB's Institutional Services actively manage stock and bond accounts for institutions, mutual funds, including Alliance Mutual Funds, and investments for well-heeled clients. The company's Retail Services unit offers investment management to other individual investors.

AB has begun a major turnaround. The company produced weak sales and earnings from 2008 through mid-2012, caused by poor investment advice to its debt and equity institutional clients.

During the past 12 months, though, the company's investment advice to clients has been among the best in the industry. AB's new success has attracted many new clients seeking market-beating returns in the debt and equity markets.

Sales advanced 7% and EPS rebounded 39% during the 12 months ended December 31, 2013. Lower costs and higher performance fees helped earnings to surge.

The company's turnaround should strengthen during the next 12 months. My forecast includes a revenue increase of 8% and an EPS advance of 18% to 2.12.

AB's dividend, which is directly correlated to profits, is now 29% higher than a year ago and provides a very high yield of 8.4%. Dividend payments should climb further during the next 12 months.

At 13.3 times latest EPS, and with a huge dividend yield, AB shares are clearly undervalued. I expect AB to reach my minimum sell price target of $33.40 within two years.

Subscribe to Cabot Benjamin Graham Value Investor here…

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UnitedHealth Group Leads the Dow Jones Today as Market Waits for Fed Taper Announcement

The Dow Jones Industrial Average (DJINDICES: ^DJI  )  was up eight points, to 16,344, at 1:30 p.m. EDT while the market waits for the Federal Reserve's statement on the taper of its economy-stimulating quantitative easing effort. The S&P 500  (SNPINDEX: ^GSPC  )  was up one point to 1,873.

UnitedHealth Group (NYSE: UNH  )  was pulling the Dow Jones up with a 2.8% rise to $80.18. Health care is the only sector in the S&P 500 up for the day, rising 0.3%.

Source: Finviz.com.

A Kaiser Family Foundation report released yesterday found that health insurers had largely maintained their market share despite all the new insurance enrollments due to Obamacare. We are now less than two weeks away from the March 31 deadline to sign up for health insurance. There were only 943,000 new enrollees last month, which brought the total to 4.2 million, well below the government's target of 7 million. Since we're a nation of procrastinators, March's numbers should be better than February, though I have not seen anything to confirm this or explain why health care is up for the day. With Wall Street plugged in to the government bureaucracy, it wouldn't surprise me to learn there is another change coming that will be beneficial to health insurers that we don't know about yet. No matter what happens, Fool analyst Dan Carroll recently highlighted UnitedHealth as one of the three health care dividend giants every investor needs to know about.

What will the Fed do?
The Federal Reserve Open Market Committee's statement is due in less than 30 minutes, followed by Federal Reserve Chairwoman Janet Yellen's press conference at 2:30 p.m. The central bank is expected to announce another $10 billion taper of its asset purchases, to $55 billion a month. It also appears likely to announce changes to its language regarding when the committee will raise short-term interest rates from the current near-zero interest rate policy.

In previous statements, the Fed has said "the current exceptionally low target range for the federal funds rate of 0 to 1/4 percent will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored."

More recently, the committee added to its statement the line, "It likely will be appropriate to maintain the current target range for the federal funds rate well past the time that the unemployment rate declines below 6-1/2 percent."

With unemployment at 6.7%, members of the Federal Reserve have been out in the media emphasizing the phrases "at least as long as" and "well past the time" when it comes to the 6.5% unemployment level. The Fed wants to reassure the market that interest rates will remain at zero for quite some time.

The Fed is expected to change the language away from an explicit level of unemployment to something more vague. Expect to see some line similar to this language from its current statement, that "the Committee will also consider other information including additional measures of labor market conditions." The key point is that interest rates of close to zero are here to stay for another year or two. That's good news for banks, but bad news for savers.

Foolish takeaway
So what can an investor do in times like this? It's hard to stay sober while everyone around you is drunk on Fed-stimulus punch, telling you to join in on the fun. My advice: Keep learning, focus on your goals, have an investing plan, stick to it, and ignore the crowds.

Do you hate your bank? If you're like most Americans, chances are good that you answered yes to that question. While that's not great news for consumers, it certainly creates opportunity for savvy investors. That's because there's a brand-new company that's revolutionizing banking, and is poised to kill the hated traditional brick-and-mortar banking model. And amazingly, despite its rapid growth, this company is still flying under the radar of Wall Street. For the name and details on this company, click here to access our new special free report.

5 Best Penny Stocks For 2014

5 Best Penny Stocks For 2014: Gentiva Health Services Inc.(GTIV)

Gentiva Health Services, Inc. provides home health services and hospice care in the United States. The company offers skilled nursing and therapy services, paraprofessional nursing services, and homemaker services primarily to adult and elderly patients through licensed and Medicare-certified agencies. It also provides its services through specialty programs comprising Gentiva Orthopedics, which offers individualized home orthopedic rehabilitation services to patients recovering from joint replacement or other major orthopedic surgery; Gentiva Safe Strides that provides therapies for patients with balance issues; and Gentiva Cardiopulmonary, which helps patients and their physicians manage heart and lung health in a home-based environment. In addition, the company offers services through Gentiva Neurorehabilitation, which helps patients who have experienced a neurological injury or condition by removing the obstacles to healing in the patient?s home; Gentiva Senior Health that addresses the needs of patients with age-related diseases and issues; and Rehab Without Walls unit, which provides neurorehabilitation therapies for patients with traumatic brain injury, cerebrovascular accident injury, and acquired brain injury. Further, it offers consulting services to home health agencies, which include operational support, billing and collection activities, and on-site agency support and consulting. Additionally, the company provides hospice services primarily in the patient?s home or other residence, such as an assisted living residence or nursing home, as well as in a hospital. Gentiva Health Services, Inc. was founded in 1999 and is headquartered in Atlanta, Georgia.

Advisors' Opinion:

• [By James E. Brumley]

  Truth be told, it's not clear if SK3 Group Inc. (OTCMKTS:SKTO) is best described when compared to a name like Cern! er Corporation (NASDAQ:CERN), or to a Gentiva Health Services, Inc. (NASDAQ:GTIV). The company's got elements of both major industries being represented by CERN and GTIV (home health care, and information technology), with the addition of another budding industry thrown into the mix. One thing IS clear though... SKTO shares have decidedly reversed a nasty downtrend, and may now be one of the market's best small cap healthcare speculative trades.

• [By Sean Williams]

  What: Shares of home health providers Amedisys (NASDAQ: AMED  ) , Gentiva Health Services (NASDAQ: GTIV  ) , and LHC Group (NASDAQ: LHCG  )  swooned as much as 28%, 20%, and 15%, respectively, following a public proposal by the Centers for Medicare and Medicaid Services, or CMS, late yesterday that in-home health care reimbursements be cut by 1.5% in 2014.

• [By Sean Williams]

  Last week, we saw home-health sector stocks like Amedisys (NASDAQ: AMED  ) and Gentiva Health Solutions (NASDAQ: GTIV  ) get clobbered because the Centers for Medicare and Medicaid Services recommended a 1.5% reduction in Medicare reimbursements each year between 2014 and 2017. With Amedisys and Gentiva reliant on Medicare for more than 80% and 90% of their revenue, respectively, it could put hospitals that rely on government reimbursements in a growth bind. 

• [By Keith Speights]

  Medicare mayhem
  Unwelcome news from Medicare last week sent home health provider stocks reeling at the end of last week. The aftermath continued into the first week of July, particularly for Gentiva Health Services (NASDAQ: GTIV  ) . Gentiva's shares dropped almost 11% this week after falling by roughly the same amount last Friday.

source from Top Stocks Blog:http://www.topstocksblog.com/5-best-penny-stocks-for-2014.html

JPMorgan’s Commodity Sale: Big Headlines, Little Impact

The market had been expecting JPMorgan Chase (JPM) to offload its commodity business for a while now–and JPMorgan finally delivered. While the deal has generated big headlines, it’s had little impact on JPMorgan’s share price.

Associated Press

The Wall Street Journal has the details on JPMorgan’s sale:

J.P. Morgan Chase & Co. has become the latest bank to scale back its commodities business, striking a deal to sell its physical assets and trading arm to Swiss trader Mercuria Energy Group Ltd. for $3.5 billion in cash…

The sale comes amid a realignment in the global commodities-trading business as tighter regulation and capital constraints have made it more difficult for big Wall Street banks to participate in the high-cost, low-margin business…Morgan Stanley (MS) agreed to sell its oil storage and trading business to state-backed Russian oil giant OAO Rosneft at the end of last year. Deutsche Bank, one of the banking industry’s biggest players in the commodities sector, said in December it would exit almost all its commodity businesses around the world. Goldman Sachs Group Inc. (GS) has entertained offers for certain units, such as its Metro International Trade Services group of metals warehouses.

Wells Fargo’s Matthew Burnell explains why JPMorgan offloaded its commodities business–and why the market has shrugged:

[JPMorgan] initially announced it had begun to seek strategic alternatives for the physical commodities operations including physical oil, gas, power, warehousing, facilities and transportation operations in late July 2013. We believe the combination of modest financial returns, elevated risk-weightings related to such assets and growing regulatory scrutiny of the operations were the primary reasons for [JPMorgan] to divest the operations….

[JPMorgan] stated the transaction will have no material effect on its earnings and expects no meaningful regulatory capital benefit (suggesting no meaningful gain/loss from the sale).

Shares of JPMorgan Chase have gained 0.1% to $58.10, while Morgan Stanley has dropped 0.4% to $31.52 and Goldman Sachs has dipped 0.1% to $167.91.

Are There Any Good Graphene Stocks?

In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool analysts Jason Moser and Brendan Mathews take a question from a reader who asks, " What are some ideas on taking advantage of the future of graphene?"

According to Brendan, there are no large, reputable publicly traded companies that will directly benefit from the potential of graphene. Of course, there is no shortage of penny stock promoters that have surfaced to capitalize on the hype (and take advantage of individual investors).

Unfortunately, a large number of penny stocks and micro-cap stocks tend to work out badly for investors. Many of them have limited business operations and their "potential" is just hype generated by unscrupulous promoters. Thus, Brendan and Jason suggest treading with caution -- or better yet, avoid investing in any graphene-related penny stocks. Investing in penny stocks, whether related to graphene or not, is the most sure-fire way to lose money in the market.

10 Best Low Price Stocks To Own Right Now

Patience rewards the long-term investor
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

VIX Trading Set to Go 'Round the Clock

Soon there will be no sleep for the market's fear gauge.

Exchange operator CBOE Holdings Inc.(CBOE) said Tuesday that it will expand futures trading on its CBOE Volatility Index to nearly 24 hours a day.

Starting on June 22, VIX futures trading will begin Sundays at 6:00 p.m. ET and close the week at 4:15 p.m. on Fridays. The change is pending regulatory review, the CBOE's news release said.

Fifteen-minute pauses will take place Monday through Thursday from 4:15 p.m. to 4:30 p.m. ET.

However, the exchange will not calculate readings of the closely watched VIX index outside of regular U.S. trading hours, a CBOE spokeswoman said.

The VIX, which measures prices traders are willing to pay for options portfolio insurance, has gained a reputation as the market's "fear gauge" because it tends to jump higher as stock prices fall. Traders often use VIX futures to hedge against declines in stock investments.

Hot Blue Chip Companies To Buy Right Now

The VIX is derived from prices investors are willing to pay for options tied to the Standard & Poor’s 500-share index.

"Customers around the world … will have the ability to trade VIX futures virtually around the clock,” said CBOE's Chief Executive, Ed Tilly, in the news release

The CBOE, the operator of the largest U.S. options exchange by trading volume, last year tacked on 45 additional minutes of VIX trading starting at 4:30 ET, as well as a five-hour window that begins at 8:00 a.m. GMT to accommodate European traders.

Stock futures in the U.S. follow a schedule similar to the new VIX futures schedule, with the brief stops during which contract values are recalibrated according to market levels.

Best Companies To Invest In Right Now

Commodity investments are heading for record outflows driven by withdrawals from gold exchange- traded funds as some investors lost faith in the traditional store of value, according to Barclays Plc.

Assets under management declined $88 billion since the start of the year through last month, Barclays said in a report Tuesday. Net outflows reached $36.3 billion, also set for a record decline, it said. Investments in precious metals slid 40% since 2012 to $119 billion.

“If precious metals ETPs are excluded, the picture is a lot more positive,” Barclays analysts led by Kevin Norrish wrote in the report. “Nevertheless we view 2014 as likely to be another difficult year for commodity investors as any clear and sustainable trends in prices will likely be few and far between.”

Best Companies To Invest In Right Now: Nexia Holdings Inc (NXHD)

Nexia Holdings, Inc. (Nexia), incorporated on April 20, 1987, operates in three principal areas: the operation of Landis Lifestyle Salons through Nexia�� ownership interest in Green Endeavors, Inc. (GRNE), which holds an 100% ownership interest in Landis Salons, Inc. and 100% ownership of Landis Salons II, Inc. (Landis II); assisting with the development and production of film products in Revel Entertainment, Inc., and the acquisition, leasing and selling of real estate. Landis operates two Aveda lifestyle salons that feature Aveda products for retail sale. Landis intends to limit the services offered in its salons to hair and makeup only. The salons��operations consist of three major components: an Aveda retail store, a hair salon, and a training academy. Revel Entertainment, Inc. (Revel) is engaged in developing, producing, and acquiring new scripts and films. On August 15, 2010, Redline Entertainment, Inc. (Redline) was launched to assist in the foreign sales of Revel�� films and to assist other non-affiliated films secure distribution in overseas markets. In April of 2010, Nexia acquired Fast Car Entertainment LLC, a Utah limited liability company that holds and owns the rights to the film entitled Repo.

Salon Operations

Through the operation of the salons, the Company offers hair care and other salon services, such as makeup, skin care and nail care. The salons incorporate the Aveda line of products the services performed, as well as the retail product offered for sale. These products include for both men and women, which includes hair care, including hair color and styling products, shampoos, conditioners and finishing sprays; makeup, including lipsticks, lip glosses, mascaras, foundations, eye shadows, nail polishes and powders; skincare, including moisturizers, creams, lotions, cleansers and sunscreens, and fragrance products. Aveda develops and manufactures a range hair, skin, makeup, perfumes, and lifestyle products from the oils of flowers and plants gathered! from worldwide. The products are sold in professional, licensed hair salons.

Entertainment Operations

Nexia has formed Revel as its film production vehicle. This Utah Corporation is 100% owned by Nexia. Revel holds a 48.7% ownership interest in and maintains control of Aesop Pictures, LLC. Nexia has a wholly owned subsidiary named Redline Entertainment, Inc. that seek to enter into contracts for the international distribution of film projects for its related entities, such as Aesop Pictures, LLC, but will also contract with third parties to assist in the distribution of their film projects. Redline would be paid a fee from the funds generated from those distribution agreement obtained for the third parties.

Real Estate Operations

Nexia operates two real estate subsidiaries: Wasatch Capital Corporation and Downtown Development Corporation. Nexia has title to two residential properties.

Advisors' Opinion:

• [By Peter Graham]

  Small cap Green Endeavors��parent company, Nexia Holdings Inc (OTCMKTS: NXHD), is a diverse holding company in the health and beauty, real estate and entertainment industries while Green Endeavors owns and operates two Aveda��salons as Landis Salons, Inc. and Landis Salons II, Inc. On Friday, Green Endeavors rose 8.11% to $0.0040 for a market cap of $147.866 plus GRNE is up 3,900% over the past year and up 100% since October 2008 according to Google Finance.

Best Companies To Invest In Right Now: Xerox Corporation(XRX)

Xerox Corporation provides business process and information technology (IT) outsourcing, and document management services worldwide. Its business process outsourcing services include human resources services; finance and accounting services; healthcare payers and pharma; customer management solutions; healthcare provider solutions; technology-based transactional services for retail, travel, and non-healthcare insurance companies; programs for federal, state, county, and town governments; transportation solutions; and government healthcare solutions. The company is involved in designing, developing, and delivering IT solutions, such as comprehensive systems support, systems administration, database administration, systems monitoring, batch processing, data backup, and capacity planning services; telecommunications management services; and desktop services. Its document outsourcing services comprise managed print services that optimize, rationalize, and manage the operation of Xerox and non-Xerox print devices; and communication and marketing services that deliver design, communication, marketing, logistic, and distribution services through SMS, Web, email, and mobile, as well as print media. The company also manufactures and sells products, including desktop monochrome, color and compact printers, multifunction printers, copiers, digital printing presses, and light production devices for small/mid-size businesses and large enterprises. In addition, it sells paper, wide-format systems, network integration solutions, and electronic presentation systems. The company sells its products and solutions through its sales force, as well as through a network of independent agents, dealers, value-added resellers, systems integrators, and the Web. Xerox Corporation was founded in 1906 and is headquartered in Norwalk, Connecticut.

Advisors' Opinion:

• [By Ben Levisohn]

  The S&P 500 dropped 0.5% to 1,781.56 as Xerox (XRX) and E*Trade Financial (ETFC) fell. The�Dow Jones Industrial Average outperformed for once: Blue chips fell 0.3% to 15,837.88 as Caterpillar’s (CAT) big gain helped mitigate the big drops in Visa (V) and Goldman Sachs (GS). Still, the Dow fell for a fifth consecutive day, its longest slide since Dec. 5, 2013.

• [By WALLSTCHEATSHEET]

  Xerox provides valuable information technology as well as document technology products and services to consumers and growing companies worldwide. The stock has not done too well over the last few years but has seen a nice year-to-date pop. Over the last four quarters, earnings have seen an overall rise while revenue has declined, which has disappointed investors. Relative to its peers and sector, Xerox has been a year-to-date performance leader. Look for XEROX to OUTPERFORM.

• [By Sean Williams]

  Finally, if you like money, then you're going to love printing service and IT-software specialist Xerox (NYSE: XRX  ) , which declared a $0.0575-per-share dividend on Tuesday. The dividend will be payable to shareholders on July 31, 2013, and marks the second quarter in a row that it'll be paying a stipend of $0.0575. With IT software and services slowly growing into the primary business for Xerox, you can expect sales and cash flow to stabilize and this dividend to grow consistently over the coming years.

• [By Sean Williams]

  This week's loser
  On the flipside, information technology and print services specialist Xerox (NYSE: XRX  ) tumbled 6.2% on the week after reporting uninspiring first-quarter earnings results. For the quarter, Xerox delivered $5.36 billion in total revenue and an adjusted profit of $0.27. Profits topped expectations by $0.03; however, revenue was $130 million shy of expectations. Xerox saw sales at its document technology segment fall 9%, while service revenue jumped 4%. As Xerox continues to transition toward a service-based model, these sales fluctuations will lessen dramatically. As a big catalyst, I'll be looking for the Patient Protection and Affordable Care Act to drastically boost its Medicare processing business next year in California.

Best Energy Stocks To Own Right Now: Omega Healthcare Investors Inc.(OHI)

Omega Healthcare Investors, Inc. operates as a real estate investment trust (REIT) in the United States. The company invests in healthcare facilities, principally long-term healthcare facilities in the United States. It provides lease or mortgage financing to qualified operators of skilled nursing facilities (SNFs), as well as to assisted living facilities (ALFs), independent living facilities (ILFs), and rehabilitation and acute care facilities. As of March 31, 2011, the company?s portfolio of real estate investments consisted of 400 healthcare facilities, including 370 SNFs, 10 ALFs, 5 specialty facilities, fixed rate mortgages on 13 SNFs, and 2 SNFs that are held-for-sale located in 35 states. Omega Healthcare Investors, Inc. has been qualified as a REIT for federal income tax purposes. As a REIT, it would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its shareholders. The company was founded in 1992 and is bas ed in Hunt Valley, Maryland.

Advisors' Opinion:

• [By Marc Bastow]

  Healthcare facilities REIT Omega Healthcare (OHI) raised its quarterly dividend 2% to 49 cents per share, payable Feb. 14 to shareholders of record Jan. 31.
  OHI Dividend Yield: 6.1%

• [By Charles Sizemore]

  Omega Healthcare Investors (OHI) is a more focused option, getting virtually all of its revenues from skilled nursing an assisted living facilities. It also happens to pay one of the highest dividend yields on offer at 6.4% and has doubled its dividend over the past 7 years.

Best Companies To Invest In Right Now: Interval Leisure Group Inc.(IILG)

Interval Leisure Group, Inc., together with its subsidiaries, provides membership and leisure services to the vacation industry in the United States, the United Kingdom, and internationally. The company operates through two segments, Membership and Exchange, and Management and Rental. The Membership and Exchange segment offers travel and leisure related products and services to owners of vacation interests, and others primarily through various membership programs, as well as related services to resort developer clients. As of December 31, 2011, its Interval Network comprised approximately 2,600 resorts located in approximately 75 countries, as well as had approximately 1.8 million vacation ownership interest owners enrolled as members. The Management and Rental segment offers hotel, condominium resort, timeshare resort and homeowners association management, and vacation rental services to vacationers and vacation property owners. As of the above date, this segment provided management and rental services to approximately 60 vacation properties and hotels. Interval Leisure Group, Inc. was incorporated in 2008 is headquartered in Miami, Florida.

Advisors' Opinion:

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Interval Leisure Group (Nasdaq: IILG  ) , whose recent revenue and earnings are plotted below.

Best Companies To Invest In Right Now: Charm Communications Inc.(CHRM)

Charm Communications Inc. operates as an advertising agency in China. The company offers a range of advertising agency services from planning and managing the advertising campaigns to creating and placing the advertisements. It places advertisements for its clients on a range of television channels, including CCTV, and satellite and regional television channels, and on other media platforms, including Internet and out-of-home media. The company also engages in media investment management through identifying, securing, and selling of advertising resources. In addition, it provides branding and identity services, including design, development, and production of advertisements; and marketing consulting services. The company is headquartered in Beijing, the People?s Republic of China.

Advisors' Opinion:

• [By Monica Gerson]

  Breaking news

  Time Warner Cable (NYSE: TWC) reported a drop in its third-quarter profit. Time Warner Cable's quarterly profit fell to $532 million, or $1.84 per share, from $808 million, or $2.60 per share, in the year-ago period. To read the full news, click here. Synergy Pharmaceuticals (NASDAQ: SGYP) today announced the start of a phase 2 clinical trial to evaluate the safety and efficacy of SP-333, its second-generation GC-C agonist and once-daily oral treatment, in adult patients with opioid-induced constipation (OIC). To read the full news, click here. Cigna (NYSE: CI) reported a 19% rise in its third-quarter earnings and lifted its full-year earnings outlook. To read the full news, click here. Charm Communications (NASDAQ: CHRM) announced today that the special committee of the Company's board of directors, consisting of independent directors Mr. Zhan Wang, Mr. Andrew J. Rickards and Mr. Gang Chen, has retained China Renaissance Securities (Hong Kong) Limited as its financial advisor and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP as its legal advisor. To read the full news, click here.

  Posted-In: Bank of America US Stock FuturesNews Eurozone Futures Global Pre-Market Outlook Markets

Best Companies To Invest In Right Now: Tumi Holdings Inc (TUMI)

Tumi Holdings, Inc. (Tumi), incorporated in September 2004, offers a range of travel and business products and accessories in various categories. The Company designs its products for, and markets its products to, professionals, travelers and individuals. As of December 31, 2011, the Company distributed its products worldwide in over 70 countries through approximately 1,600 points of distribution. The Company sells its products worldwide to consumers through both direct and indirect channels and manages its business through four operating segments: Direct-to-Consumer North America, Direct-to-Consumer International, Indirect-to-Consumer North America and Indirect-to-Consumer International.

Tumi utilizes an array of channels, including retail, wholesale and e-commerce. The Company�� retail stores are located in retail venues worldwide, including New York, San Francisco, Chicago, Paris, London, Rome, Tokyo, Munich, Moscow, Milan and Barcelona. The Company designs its products in its United States design studios. The Company sells its products directly to consumers through a worldwide network of approximately 100 company-owned locations, consisting of full-price stores located in retail malls or street venues, outlet stores in outlet malls and its e-commerce Websites. During the year ended December 31, 2011, Direct-to-Consumer sales consisted approximately 48% of its net sales.

The Company sells its products indirectly to consumers through various channels that include partner stores (wholesale accounts operated by local distributors or retailers that carry only Tumi products), its worldwide wholesale distribution network of specialty luggage retailers, department stores and business-to-business channels, retail concessions within department stores and third-party e-commerce sites, such as Amazon.com, Zappos.com. Indirect-to-Consumer sales consisted of approximately 52% of its net sales during 2011. Tumi offers travel and business products, as well as accessories. Travel produc! ts include wheeled and soft carry-on luggage, garment bags, totes, duffels, wheeled packing cases and travel kits. Business products include business cases, day bags and totes. Its accessories include agendas and planners, passport cases, umbrellas and travel accessories, such as electric current adapters, key fobs, packing accessories, toiletry kits and foldable travel totes. Its accessories also include belts, outerwear and sunglasses and eyewear.

Direct-to-Consumer North America

The Company sells its products directly to consumers through a network of 83 company-owned retail stores consisting of full-price stores and outlet stores located in retail malls or street venues. It also sells its product directly to consumers through its e-commerce Website.

Direct-to-Consumer International

As of December 31, 2011, the Company sold directly to consumers through a network of 14 company-owned full-price and outlet stores in street venues and select malls in international locations. It also sells its products directly to consumers through its two international e-commerce Websites.

Indirect-to-Consumer North America

As of December 31, 2011, the Company sold to wholesale customers in North America through approximately 700 doors, including specialty luggage retailers, department stores and business-to-business channels. Many of its wholesale customers also operate their own e-commerce Websites through which it sells. The Company�� products are also sold in partner stores operated by local distributors or retailers that carry only Tumi products.

Indirect-to-Consumer International

The Company sells its products to wholesale customers through approximately 800 doors, approximately 59% of which are in the Europe, Middle East and Africa region, 39% of which are in the Asia-Pacific region, and 2% of which are in the Central and South America region. It has distribution channels in Australia, China, Europe, Hong Kon! g, the Mi! ddle East, South Africa, South Korea, Southeast Asia and Taiwan. Its products are also sold in partner stores operated by local distributors or retailers that carry only Tumi products. The Company also operates concessions in department stores throughout Europe and the Middle East. Many of its wholesale customers also operate their own e-commerce Websites through which they sell its products.

Tumi competes with Rimowa, Samsonite, Bally, Burberry, Dunhill, Ferragamo, Gucci, Louis Vuitton, Montblanc, Porsche, Prada, Victorinox, Briggs and Riley, Mandarina Duck, Piquadro, Porter, Ace Brand, and Coach.

Advisors' Opinion:

• [By Luke Jacobi]

  Tumi Holdings (NYSE: TUMI) was also up, gaining 6.09 percent to $20.55 after the company signed a licensing agreement with David Peyser Sportswear.

• [By Michael Lewis]

  Luxury luggage brand Tumi (NYSE: TUMI  ) , a little more than one year since its IPO, has failed to achieve much in the way of capital appreciation. The company came out of the gates with a rich valuation, heavily influenced by the then-recent success of other high-line brands such as Michael Kors. Tumi is growing, and will continue to grow -- much of its performance (or lack thereof) in the market has been the typical story of overvaluation and overhype. In the just-released earnings, there is plenty of evidence of a fundamentally strong company with a long runway for growth, even if Wall Street analysts were expecting a little more. With a long-term mind-set, is Tumi a good stock?

Best Companies To Invest In Right Now: IAC/InterActiveCorp (IACI)

IAC/InterActiveCorp engages in the Internet business in the United States and internationally. The company�s Search segment develops, markets, and distributes various downloadable toolbars; provides search, reference, and content services through its destination search and other Websites, including Ask.com and Dictionary.com; and aggregates and integrates local advertising and content for distribution to publishers on Web and mobile platforms, as well as markets and distributes mobile applications through which it provides search and additional services. Its Match segment offers subscription-based and advertiser-supported online personals services through its Websites comprising Match.com, Chemistry.com, OurTime.com, BlackPeopleMeet.com, and OkCupid.com, as well as through mobile applications and Meetic-branded Websites. The company�s ServiceMagic segment offers Market Match service that matches consumers with service professionals; Exact Match service, which enables con sumers to review service professional profiles and select the service professional that meets their specific needs; and 1800Contractor.com, an online directory of service professionals. This segment also offers Website design and hosting services. Its Media and Other segment operates CollegeHumor.com, an online entertainment Website that targets young males; Vimeo, a Website on which users can upload, share, and view video; and Pronto.com, a comparison search engine. This segment also engages in the creation of video content for various distribution platforms; and operates as an Internet retailer of footwear and related apparel and accessories, as well as focuses on multimedia business. The company was formerly known as InterActiveCorp and changed its name to IAC/InterActiveCorp in July 2004. IAC/InterActiveCorp was founded in 1986 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Igor Novgorodtsev]

  InterActiveCorp (IACI) bought Ask.com for $1.85 billion in 2005. The new Perion will be worth only about 40% of that. After the merger, Perion will leapfrog its much larger rivals: Babylon and AVG (AVG). Finally, Perion should be able to increase its operating margins as it can spread its SG&A costs over a much larger base (Conduit EBITDA margin is 32% vs. Perion's 23%). Perion will keep its senior management team intact: Josef Mandelbaum will remain its CEO and Yacov Kaufman its CFO. Perion has successfully orchestrated a roll-up acquisitions of privately-held Sweetpacks and Smilebox, so I have high confidence that they know how to integrate a new business.

Best Companies To Invest In Right Now: Zinco Do Brasil Inc (ZNBR)

Zinco do Brasil Inc., formerly TurkPower Corporation, incorporated on November 4, 2004, has been a Turkish-American consulting and service operations firm and junior mining company. TurkPower offered its domestic and international clients consulting services and plans to act as a full service operator for wind, hydro, solar, coal and geothermal energy parks in Turkey.

In November 2011, the Company ceased all operations in Turkey. During the fiscal year ended May 31, 2012 (fiscal 2012) the Company impaired its entire mining company investment.

Advisors' Opinion:

• [By Peter Graham]

  Small cap mining stocks Discovery Minerals Ltd (OTCMKTS: DSCR), Zinco Do Brasil Inc (OTCMKTS: ZNBR) and Amalgamated Gold and Silver Inc (OTCMKTS: BCHS) have been getting some extra attention lately as one stock surged last Friday while the other two are or have been in the past, the subject of paid promotions. It goes without saying though that small cap mining stocks tend to be riskier than your average stock. But do these three small cap mining stocks have what it takes to produce a mother lode for investors? Here is a deeper dig into all three:

Best Cheap Stocks To Buy For 2014

Best Cheap Stocks To Buy For 2014: S&P GSCI(GD)

General Dynamics Corporation, an aerospace and defense company, provides business aviation; combat vehicles, weapons systems, and munitions; military and commercial shipbuilding; and communications and information technology products and services worldwide. Its Aerospace group designs, manufactures, and outfits various large and mid-cabin business-jet aircraft; provides maintenance, repair work, fixed-based operations, and aircraft management services; and performs aircraft completions for aircraft. The company?s Combat Systems group offers tracked and wheeled military vehicles, weapons systems, and munitions. Its product lines include wheeled combat and tactical vehicles; battle tanks and infantry vehicles; munitions and propellant; rockets and gun systems; and axle and drivetrain components and aftermarket parts. This group also manufactures and supplies engineered axles, suspensions, and brakes for heavy-load vehicles for military and commercial customers. The company Advisors' Opinion:

• [By Rich Smith]

  The Department of Defense awarded nine separate defense contracts Monday, worth $1.6 billion in total. Among these, two contracts went to General Dynamics (NYSE: GD  ) and Australian shipbuilder Austal (NASDAQOTH: AUTLY  ) , its partner in building half the U.S. Navy's fleet of Littoral Combat Ships, or LCSes.

• [By Marc Bastow]

  Defense contractor General Dynamics (GD) raised its quarterly dividend 10.7% to 62 cents per share, payable May 9 to shareholders of record as of April 11. The increase is the 17th consecutive annual dividend raise for GD.
  GD Dividend Yield: 2.23%

• [By Philip Springer]

  This week, Defense Secretary Chuck Hagel proposed a defense budget that would reduce the US Army to its smallest force since before World War II. And we were woefully u! nder-prepared for that war.
  
  The proposals will face powerful resistance from members of Congress, veterans' organizations, arms manufacturers and more. Complete details of the proposed federal budget are to be released next week.
  
  The timing is unfortunate. For example, consider this headline from last night: “Russia says it will respect the ‘territorial integrity’ of Ukraine.” Maybe. But such statements are meaningless.
  
  Amid considerable other global unrest these days, reducing our spending on defense seems imprudent. However, various constraints that have built up over time require it, or reductions elsewhere.
  
  Fifty years ago, the military made up nearly half of government spending. Now it’s about 17 percent. Entitlements were one-third of the budg et then. Now they’re approaching two-thirds. “This is a time for reality,” Hagel said.
  
  Under the new approach, the emphasis is to shift from the longstanding goal of being able to fight two wars simultaneously, such as in Europe and Asia; and toward such threats as cyber warfare and terrorism.
  
  For instance, the size of the active-duty military would decline by 13 percent and the reserves by 5 percent in coming years. But Special Operations forces would grow by 6 percent.
  
  Inevitably, this would mean increased risk in the event of a second crisis. "You have fewer troops, fewer ships, fewer planes," Hagel said.  "Readiness is not the same standard. Of course there's going to be risk."
  
  The Army currently is scheduled to drop to 490,000 troops from a post-9/11 peak of 570,000. Under the new proposal, the Army would decline to between 440,000 and 450,000 based on the current mandate to impose a military spending cap of about $496 billion for fis

source from Top Stocks Blog:http://www.topstocksblog.com/best-cheap-stocks-to-buy-for-2014.html

Plug Power could fizzle if earnings fall short

What do you call a stock that has soared 3,650% and has no earnings?

Plug Power, and it's reporting its earnings Thursday. Or, most likely, its lack of earnings.

Of course, there are other words for Plug Power, which puts hydrogen fuel cells into forklifts. Fuel cells, as do batteries, provide electric current. Unlike batteries, they can generate electricity as long as they have fuel and oxygen to keep the reaction going.

It's easy to generate huge returns when you start from a low base.

And two words for Plug Power last year would have been "penny stock." The stock sold for 18 cents a year ago. It closed at $6.80 a share Wednesday, even though it lost 19 cents a share in the third quarter of 2013.

Analysts expect the company to lose 8 cents a share in the fourth quarter.

What's making Plug Power run? Investor expectation of a big run-up in orders. Both Wal-Mart and Federal Express are Plug Power customers.

A recent critical report by Citron Research on Plug Power notes that both companies get tax breaks for using the fuel cells. Should those tax breaks go away — and they might — fuel cells could be a much tougher sell.

Another word for Plug Power: risky. Rival FuelCell Energy reported disappointing earnings Monday, and the stock tumbled 16.5%. Plug Power plunged 30.5%. Expect Plug Power to short out even or more if earnings don't dazzle.

Top 5 Asian Stocks For 2014

Top 5 Asian Stocks For 2014: YPF Sociedad Anonima(YPF)

YPF SOCIEDAD ANONIMA, an energy company, engages in the exploration, development, and production of crude oil, natural gas, and liquefied petroleum gas (LPG) in Argentina. The company also involves in refining, marketing, transportation, and distribution of oil and a range of petroleum products, petroleum derivatives, petrochemicals, LPG, and bio-fuels; and gas separation and natural gas distribution operations. As of December 31, 2010, it had proved reserves of approximately 531 million barrels of oil and 2,533 billion cubic feet of gas; and retail distribution network of 1,622 YPF-branded service stations for automotive petroleum products. The company?s crude oil transportation network includes approximately 2,700 kilometers of crude oil pipelines with approximately 640,000 barrels of aggregate daily transportation capacity of refined products; crude oil tankage of approximately 7 million barrels; and terminal facilities at 5 Argentine ports. In addition, it participates in 3 power stations with an aggregate installed capacity of 1,622 megawatts. The company was founded in 1977 and is based in Buenos Aires, Argentina. YPF SOCIEDAD ANONIMA is a subsidiary of Repsol YPF, S.A.

Advisors' Opinion:

• [By Aaron Levitt]

  First, the Brazilian government's populist politics and price controls on various refined petroleum products have continued to destroy PBR's bottom line. By only allowing Petrobras to sell gasoline at certain prices, the firm actually losses money on its downstream operations. These controls by the Brazilian government extend in other operations of PBR as well, and the threat of an Argentinian-style YPF (YPF) nationalization — however small — is there.

• [By Jonathan Yates]

  For investors, the rebound of YPF SA (NYSE: YPF) and Petrobras Argentina (NYSE: PZE), both oil and gas fir! ms in Argentina, should serve as profitable examples for remaining bullish about the long term prospects of Petrobras Brasileiro (NYSE: PBR).

• [By Jonathan Yates]

  That is very easy to fix, however. Investors should look at the recent example of YPF SA (NYSE: YPF), the Argentine oil giant. Actions by the government of Argentina drove down the share price. Since then, the country has worked to make YPF SA, and Argentia, more attractive to investors. As a result, YPF SA is up more than 90 percent for 2013. Much of the economic health of Brazil rests on the performance of Petrobras, so more beneficial actions from the Government of Brazil should be expected.

source from Top Stocks Blog:http://www.topstocksblog.com/top-5-asian-stocks-for-2014.html

Is ViaSat, Inc the Best In-Flight Wifi and Satellite Communications Stock? VSAT, GOGO & IRDM

Jim Cramer, the host of CNBC's Mad Money, recently touted ViaSat, Inc (NASDAQ: VSAT) as an in-flight WiFi or satellite communications related play, meaning its worth taking a closer look at the stock along with the performance of small cap in-flight WiFi provider Gogo Inc (NASDAQ: GOGO) and small cap satellite communications firm Iridium Communications Inc (NASDAQ: IRDM). I should mention that I have written about Gogo Inc in the past (Small Cap Gogo Inc (GOGO): Is There Turbulence Ahead? IRDM and Is In-flight WiFi Stock Gogo, Inc. (GOGO) the Next Iridium?) and Cramer also touched on some of the differences between the in-flight wifi service offerings of both. Cramer also interviewed ViaSat, Inc's CEO who said they had been waiting for a new satellite to "disrupt" the market.

What is ViaSat, Inc?

ViaSat, Inc produces innovative satellite and other digital communication products that enable fast, secure and efficient communications to any location. Product offerings include satellite networks for fixed-site and mobile communications; satellite antenna systems; wireless datalinks and terminals for combat situational awareness; Cybersecurity and Information Assurance for military networking and encrypted data storage; mobile IP networking for soldiers; communication microprocessor chipsets; application and communication acceleration; satellite network and RF system design; and communication simulation and training systems while service offerings include global mobile satellite services for government and commercial aircraft, vehicles and seagoing vessels along with satellite internet access and other broadband services for consumers, business, and government customers in the US.

As for potential performance peers or competitors, small cap Gogo Inc's proprietary Air-To-Ground broadband network allows passengers with laptops and other WiFi enabled devices can get online on all domestic AirTran Airways and Virgin America flights and on select Air Canada, Alaska Airlines, American Airlines, Delta Air Lines, Frontier Airlines, United Airlines and US Airways flights plus on thousands of business aircraft while small cap Iridium Communications' predecessor was Iridium SSC which filed for bankruptcy after launching its satellite mobile service that was prohibitively expensive for most consumers at the time. The company eventual remerged as Iridium Communications which remains the only satellite communications company offering truly global voice and data communications coverage just about everywhere on the planet thanks to 66 low-Earth orbiting (LEO) cross-linked satellites.

What You Need to Know or Be Warned About ViaSat, Inc

ViaSat, Inc CEO's Mark Dankberg was also interviewed on CNBC in mid-February where said they had the following three goals for in-flight wifi:

Make sure everyone can use it at once rather than just 10 or 12 people. Deliver it at fast speeds (e.g. same on the ground experience). Make it affordable as its free for the first six months on Jetblue.

He commented that the system now has Netflix capability and the objective is to give users of mobile devices the same experience they would have on the ground.

A few days before the CNBC interview, ViaSat, Inc reported a fiscal third quarter 16% revenue increase to $332.6 million with the Satellite Services segment reporting a 37% revenue increase to $98.6 million, the Commercial Networks segment reporting a 34% revenue increase to $91.9 million and the Government Systems segment reporting a revenue decrease of $4 million to $142.0 million.  The net loss came in at $6.0 million verses $20.8 million while the CEO commented:

"The launch of Exede® In The Air via JetBlue's Fly-Fi™ service is an exciting example of opportunities uniquely enabled by our satellite network assets and innovative technologies. We aim to create an opportunity for disproportionately strong growth by redefining the in-flight Wi-Fi experience - engaging up to 10 times the number of passengers per flight, with speeds 10 to 100 times faster than competing systems, at costs far lower than possible with conventional infrastructure. We are fortunate to have similar disruptive opportunities in several key markets."

For this fiscal year, it looks like ViaSat, Inc would be sitting on a net loss (so far). However, investors should keep in mind that ViaSat, Inc has reported revenues of $1,119.69M (12 months ending 2013-03-29), $863.63M (12 months ending 2012-03-30), $802.21M (12 months ending 2011-04-01) and $688.08M (12 months ending 2010-04-02) along with a net loss of $41.17M (12 months ending 2013-03-29) and net income of $7.50M (12 months ending 2012-03-30), $36.12M (12 months ending 2011-04-01) and $31.14M (12 months ending 2010-04-02).

Share Performance: ViaSat, Inc vs. GOGO & IRDM

On Thursday, ViaSat, Inc fell 0.73% to $69.19 (VSAT has a 52 week trading range of $45.18 to $73.43 a share) for a market cap of $3.19 billion plus the stock is up 47.9% over the past year and up 271% over the past five years. Here is a look at the performance of ViaSat, Inc verses that of Gogo Inc and Iridium Communications:

As you can see from the above performance chart, ViaSat, Inc has been a steady performer for investors while Iridium Communications has trended downward and Gogo Inc has been all over the place.

Finally, here is a look at the latest technical charts for all three stocks:

The Bottom Line. Given the opportunities presented by in-flight wifi, ViaSat, Inc's recent losses may not matter for the long haul – meaning this is an in-flight wifi or satellite communications stock that's worth a much closer look at by investors.

As Stock Picking Comes Back In, ETF Use Goes Out

Here's the latest evidence that stock picking is back: Investors are buying and selling fewer exchange-traded funds.

As big macroeconomic headlines recede, ETFs are falling out of favor. ETF volumes have dipped this year to about 16.5% of total equity volumes, down from 16.7% in 2013, according to analysts at Credit Suisse(CSGN.VX) Trading Strategy. The data suggest that investors are increasingly favoring trades in individual stocks.

"ETF usage typically increases when macro issues dominate and correlation increases since ETFs are a convenient way to move money quickly and shift beta exposures efficiently," the analysts write.

Credit Suisse

In 2011, when the euro-zone crisis pushed markets to and fro, ETFs made up 18.2% of total volumes. The figure hit a peak of nearly 20% in 2009, just after the financial crisis.

Top Financial Stocks To Own For 2014

To be sure, ETF use did spike a few days this year when macro headlines returned to the fore. When Russia invaded Ukraine on March 3, ETF use jumped to more than 21%. When a weak manufacturing report knocked stocks on Feb. 3, the figure shot to nearly 25%.

An article in this week's Wall Street Journal noted that such macro headlines have grown more scarce this year. As a result, correlations–the tendency of individual stocks to trade in the same direction—have declined and more investors are shifting toward active management.

Credit Suisse also highlighted the recent drop in correlations. One metric, one-month "realized" correlation within the S&P 500, is down to 25%, according to Credit Suisse.

Top Gold Stocks To Watch For 2015

Top Gold Stocks To Watch For 2015: Golden Star Resources Ltd(GSS)

Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.

Advisors' Opinion:

• [By Patricio Kehoe] ating price of the commodity, along with the geopolitical risks involved in mining in African nations such as Ghana, are just two of the obstacles the firm is facing. In addition, as one of the smallest gold mining firms in the industry, with a market cap of just $122 million, Golden Star has had a very difficult time financing its latest expansion projects. With share prices tumbling towards all-time lows, gurus such as Steven Cohen, Chuck Royce and Arnold Schneider have already sold out their positions in the troubled firm.

  Why Have Gurus Lost Faith in Golden Star?

  Despite aggressive expansion over the past decade, the Toronto-based gold mining firm has not been able to take advantage of its increased production output. Gold prices might have exploded over a ten-year period, yet the recent six-month decline has put a huge strain on Golden Star. The expedited maturation of its mines is particularly troubling, since the accelerate! d extraction rates, which allowed for short-term profits, are now falling considerably. The impact of the company's excessive overproduction on profits and growth is clear: decreasing gold reserves mean less production, and thus reduced revenue for the gold miner. When the decline in metal prices are taken into account, the outlook is even more grim.

  In addition to overexpansion at the wrong time, Golden Star's position has weakened due to its comparably less efficient operations. Unlike industry peers, such as IamGold Corp. (IAG) or Gold Fields Ltd. (GFI), the majority of the Toronto-based miner's assets contain refractory ore, which is far more expensive to extract than non refractory ore. And, in an attempt to switch production to the lower cost gold ore, and thus increase margins, Golden Star has depleted its mines' non refractory ore. With low reserves and mounting cash costs, the firm inevitably turned to new acquisitions.

  Overpriced Acquisitions and Geopolitical Risk

  The purchase

• [By Rich Duprey]

  Clash of the titans
  When bears are raging on the gold bullion market, it's not surprising to see gold stocks getting mauled as well. Golden Star Resources (NYSEMKT: GSS  ) was the biggest loser in the sector, losing a quarter of its market cap on no company-specific news, though a report last Friday indicated that a large number of hedge funds had recently dumped their positions in the mid-tier miner. Yet it wasn't all that much better among the majors, either, as Barrick Gold (NYSE: ABX  ) fell almost 13% and Kinross Gold (NYSE: KGC  ) was down 14%.

• [By Sean Williams]

  Golden Star Resources (NYSEMKT: GSS  )
  It's simple physics: The bigger they are, the harder they fall. When gold prices nosedived earlier this week, gold miners with historically higher operating costs took the brunt of the hit. For the most part, that meant that development-stage miners, and those ope! rating in! Africa, where labor and political costs make cost-effective mining a challenge, took it on the chin. Possibly no stock was hammered more than Golden Star Resources, a gold miner in Ghana, which lost about one-quarter of its value on Monday alone.

source from Top Stocks Blog:http://www.topstocksblog.com/top-gold-stocks-to-watch-for-2015.html

RantSports: A start-up built on a passion

Q: I have always loved race cars. I would love nothing more than to start a business that allows me to live my passion every day. But what sort of business would that be and how would I even do it? -- Ray

A: When it comes to passion and business, there are two schools of thought.

On one hand, you have someone like Jeff Bezos. In the early 1990s, when he discovered that the Internet was growing at 2,300% a year, he decided that he had to take advantage of it and start an online business. His research led him to conclude that selling books was the way to start. Sure, he loved the idea of being an Internet pioneer, but his decision to sell books was a pragmatic one.

On the other hand, look at this quote from Steve Jobs:

"People say you have to have a lot of passion for what you're doing and it's totally true. And the reason is because it's so hard that if you don't, any rational person would give up. It's really hard. And you have to do it over a sustained period of time. So if you don't love it, if you're not having fun doing it, you don't really love it, you're going to give up."

One person who falls into the Jobs camp, who has learned how to take his passion and turn it into a business, is Brett Rosin of the RantSports Network. In four short years, he and his partner Grant Brown have turned their love of sports into one the best, and fastest growing, sports networks around.

In college, Rosin was a major league prospect with a 92 mph fastball . . . until he blew out his arm. Two elbow surgeries later, he decided to turn his love of sports into a business. In February 2010, he and Brown began to build and run a collection of sports team blogs, which would quickly swell to 155. Before long, they merged them all into a centralized hub known today as RantSports.

From the start, RantSports has an edge that made it stand out. I once heard of a business coach who gave a new entrepreneur this piece of advice: "Ask them what they want, then give them what they want." And w! hat is it sports fanatics want? Usually, it is the chance to argue sports. So that is what Rant gave them.

There is no shortage of sports sites out there that report sports scores and news, but what Rant does differently and better is that they encourage their writers to have an opinion, defend it and debate it. And they clearly have fun doing so.

This sort of engagement allowed RantSports to get traffic from the get-go. By December of their first year, their combined blogs had 300,000 unique visitors, even though the company still had only two employees.

But to grow you need, money, and even though RantSports had traffic, advertising dollars and a sustainable business model, it still needed funding to get to the next level. Like so many new entrepreneurs, the founders of Rant Sports turned to friends and family and raised a seed round of about $300,000. This allowed them to bring in a few more employees and a lot more writers and grow the site even more.

And today? As of October 2013, RantSports has reached 96 million people with more than 1.4 billion page views in 2013. In November, they raised a round of investment of $3 million from Hudson Bay Capital and they launched a life style brand, Rant Lifestyle and Rant Chic.

When I asked Brett what advice he had for entrepreneurs wanting to turn their own passion into a business, he made a few important points:

1. Be willing to sacrifice. It takes a lot of time and energy to start a business from scratch, and "you have to be willing to give up some time on other things to devote the energy necessary to get the business off the ground."

2. Grind away. Keep at it. "Not all months were great months at the start, but we kept working at it."

3. Learn. There is a lot to know when you start a business, so it's important he says to study your craft, network, go to conferences, and get the help you need.

So, yes, you bet, starting a business from scratch is very possible, as long as you are a fan of what you do.!

St! eve Strauss is a lawyer specializing in small business and entrepreneurship. E-mail Steve at sstrauss@mrallbiz.com. His website is TheSelfEmployed.