Cancellation reversal causes insurer headaches

Consumers are flooding their insurance agents with questions about whether and when they can get their canceled insurance polices back, now that President Obama says it's OK.

But those agents have few answers. They are still waiting for clarification from insurers, who are awaiting word from their state insurance commissioners and even the White House.

The CEOs of major insurers including Cigna, Aetna and Humana, met with President Obama Friday but left without talking to reporters about what will happen to plans that didn't meet the requirements of the Affordable Care Act. Meanwhile, the insurance commissioners for Vermont, Georgia and Washington state were among those saying they won't allow reinstatement of canceled policies.

"We've been advising our members to tell clients to sit back and wait as developments unfold over the next few days," says Jessica Waltham, senior vice president of government relations at the National Association of Health Underwriters, which represents insurance agents.

State insurance commissioners, the White House and the Department of Health and Human Services will need to provide "details as to how they would move this policy forward," she says.

"It's been non-stop since this whole thing started (Thursday)," says John Young, director of sales at Flexible Benefit Service Corp. in Rosemont, Ill. "Everyone wants to know what effect the president's message will have and, at this point, we just don't know until the insurance commissioner advises the carrier about what they'll allow."

Young, whose company handles group insurance policies and acts as a broker for about 1,000 insurance agents, was on a conference call Friday with Blue Cross Blue Shield of Illinois that offered few answers.

John DeGruttola, senior vice president of marketing and sales for insurer Optima Health, says it changing plans back "is going to be very difficult to administer."

"We went forward with the intent that this was the law of the land," says DeGruttola ! whose company only sells insurance in Va.."Nobody was focused on the existing plans. They were not filed (with the insurance commmissioner) nor were they approved."

While many state insurance commissioners had already allowed insurers to extend their plans into 2014 to allow consumers more time to make decisions, the Illinois insurance commissioner did not. Young says many agents have already put consumers into pricier new plans, but it "might be difficult to get a refund from the carrier."

"A lot has already been done" to switch people to new plans that comply with the ACA, says Young. Now, "there's incredible confusion" for those consumers about what to do.

Among the other details that remain to be worked out: Which insurers and insurance commissioners will OK the old policies now, whether insurers are allowed to raise the prices on the canceled policies and whether there will be additional financial help for insurers now dealing with more potential financial risk.

In Pleasant HIll, Calif., broker Colleen Callahan says she had been "steadily preparing comparisons and reviews" that are customized for consumers to help them plan for the new year. It's a "big project and it takes us quite a bit of time to prepare and present, either in person or by email first, followed up by a telephone call or an in person meeting," she says.

"The confusion now is that those currently insured are not sure of the next step. Do they have to make a change or can they keep their current plan?," says Callahan. "In some cases the premiums on the existing plans might be better and in some cases the new plan premiums might be better. It is all case-by-case."

QUALCOMM, Inc. (QCOM): Did Goldman Lowball With $80 Price-Target?

QUALCOMM Incorporated (QCOM) is on the go this humpday thanks in large part to an upgrade from Goldman Sachs. The masters of the financial universe added the communication equipment maker to their Conviction Buy List, but left the price target unchanged at $80.

More conviction, but same target price… things that make you go hmmm?

Analyst Simona Jankowski thinks QCOM's price performance could play catch up with the likes of Cisco Systems (CSCO), Motorola Solutions (MSI), and Texas Instruments (TXN).

Jankowski notes the underperformance of QCOM as a reason for her change of heart. She says, "QCOM has lagged the market, +11% ytd vs. the S&P +24%, as upward estimate revisions have been offset by multiple compression. QCOM's NTM P/E multiple has compressed from 14.2X to 13.2X over the last 12 months as sales growth is expected to decelerate with smartphone penetration leveling off (CY10-13E sales CAGR of 30% vs. our CY13E-CY16E sales CAGR of 9%). We believe the multiple compression is largely behind us, as more aggressive capital allocation and expanding chipset margins should drive accelerating earnings growth from here."

[Related -Qualcomm (QCOM) Guidance Raises Questions]

Simona believes the EPS growth will come from fatter profit margins, "We also estimate that Qualcomm's chipset segment margins marked a bottom last quarter and will expand by more than 400bp over the next 4 quarters on structural cost improvements and mix. Coupled with opex cuts, this should help drive an 850bp expansion in Qualcomm's operating margins over the next 4 quarters, with non-GAAP EPS growth going from -1% yoy in 1QFY14E (Dec.) to 32% in 4QFY14E (Sep.)."

[Related -NVIDIA Corporation (NVDA) Q3 Earnings Preview: Can We See Another Beat?]

Goldman sets 2014 non-GAAP EPS at $5.43, but says there could be more. To get to $80, the NASDAQ 100 member needs to trade at 14.73 times Jankowski estimate.

iStock thinks Simona could be sandbagging based on the math in the paragraph above and QCOM's five-year price-to-earnings (P/E) ratio. The chip maker's lowest P/E in the last half-decade was 15.35 with an average of 24.79.

During the same timeframe, EPS grew at an average of 20.47%, w! hich means QUALCOMM tends to trade at a 21% premium to its growth rate. Net income is expected to increase by 12.2% this year, not including Jankowski's possible upside to EPS. A 21% markup would deliver a P/E of 14.76, which is spot on for Simona's $80 price target.

Overall: $80 could prove to be a lowball price target for QUALCOMM Incorporated (QCOM). If Simona Jankowski's numbers and margin expansion predictions prove true, then $100 is a possibility, too, in our opinion. 

5 Stocks With Poor Analyst Earnings Revisions — VCRA SUNE BONT VRTX PSEM

Popular Posts: 6 Oil and Gas Stocks to Buy Now16 Oil and Gas Stocks to Sell Now3 Machinery Stocks to Sell Now Recent Posts: 12 “Triple F” Stocks to Sell 8 “Triple A” Stocks to Buy 5 Stocks With Poor Analyst Earnings Revisions — VCRA SUNE BONT VRTX PSEM View All Posts

This week, these five stocks have the worst ratings in Analyst Earnings Revisions, one of the eight Fundamental Categories on Portfolio Grader.

Vocera Communications, Inc. () is a provider of mobile communication solutions designed to restore the human connection to healthcare. VCRA also gets an F in Equity. .

SunEdison, Inc. () develops, manufactures, and sells silicon wafers. SUNE also gets F’s in Earnings Growth, Earnings Momentum, Equity, and Cash Flow. .

The Bon-Ton Stores, Inc. () operates regional department stores in the United States that offer an brand-name fashion apparel and accessories for women, men, and children as well as cosmetics, home furnishings, and other goods. BONT also gets an F in Equity. The stock’s trailing PE Ratio is 60.70. .

Vertex Pharmaceuticals Incorporated () is engaged in the business of discovering, developing and commercializing small molecule drugs for the treatment of serious diseases. VRTX also gets F’s in Earnings Growth, Earnings Momentum, and Sales Growth. .

Pericom Semiconductor Corporation () designs, develops, and markets interface integrated circuits for the transfer, routing, and timing of high-speed digital and analog signals. PSEM also gets an F in Operating Margin Growth. .

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.

Top Undervalued Companies To Own For 2014

Every quarter, many money managers have to disclose what they've bought and sold, via "13F" filings. Their latest moves can shine a bright light on smart stock picks.

Today let's look at Diamond Hill Capital Management, founded in 2000 and based in Ohio. Its management has explained, "Our research is predominantly a bottom-up process beginning with fundamental analysis of a company's profitability and�market position, financial and competitive position, management quality, valuation, and growth components of valuation." Like other value-oriented investors respected by The Motley Fool, Diamond Hill seeks undervalued investments and margins of safety.

The company's reportable stock portfolio totaled $9.5 billion in value as of March 31.

Interesting developments
So what does Diamond Hill's latest quarterly 13F filing tell us? Here are a few interesting details.

The biggest new holdings are Philip Morris International and Reinsurance Group of America (NYSE: RGA  ) . Other new holdings of interest include Radian Group (NYSE: RDN  ) . To say that mortgage insurer Radian had a good past year would be an understatement, as the stock more than tripled. That's partly due to expectations of a boom in business as the housing market picks up, with tighter lending rules probably leading to greater need for the coverage. The stock recently got an upgrade, with an analyst expecting a possibly bumpy 2013 because of a high level of delinquent loans, but much smoother sailing in following years.

Top Undervalued Companies To Own For 2014: Tupperware Corporation(TUP)

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

Advisors' Opinion:

• [By Oliver Pursche]

  European large-cap pharmaceuticals like Novartis (NVS) �and Bristol Meyers Squibb (BMY) �count amongst some of our favorite stocks right now, as do U.S. multinationals that are growing revenue and margins in Asia ��Tupperware (TUP) �is a shining example. Stay away from utilities and energy stocks, as they are likely to be the laggards over the next year.

• [By Arie Goren]

  After running this screen on May 21, 2013, before the markets' open, I discovered the following eight stocks: Sunoco Logistics Partners LP (SXL), Leggett & Platt Inc (LEG), Copa Holdings SA (CPA), RPC Inc. (RES), Tupperware Brands Corp. (TUP), Herbalife Ltd. (HLF), John Wiley & Sons Inc. (JW.A) and C.H. Robinson Worldwide Inc. (CHRW).

Top Undervalued Companies To Own For 2014: Schlumberger N.V.(SLB)

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

Advisors' Opinion:

• [By David Smith]

  It's now two to one among the big oil-field services companies regarding the North American oil and gas markets. Through Monday, Schlumberger (NYSE: SLB  ) , the largest company in the sector had expressed concern about the market and its short-term prospects, while Halliburton (NYSE: HAL  ) , the second-biggest member of the group, joined Baker Hughes (NYSE: BHI  ) in assessing our continent's activity levels more positively.

• [By Lee Jackson]

  Energy: Schlumberger Ltd. (NYSE: SLB)�crushed earnings by an astonishing 50.9% last quarter. With Mexico changing its policy on oil exploration, the oil field services leader may see continued strong earnings growth in the years ahead. The consensus price target for the stock is posted at $96. Investors are paid a 1.5% dividend.

10 Best Insurance Stocks To Buy For 2014: Dollar Tree Inc.(DLTR)

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

Advisors' Opinion:

• [By Jon C. Ogg]

  Dollar Tree Inc. (NASDAQ: DLTR) was maintained as a Buy but was removed from the prized Conviction Buy list at Goldman Sachs.

  Duke Energy Corp. (NYSE: DUK) was raised to Buy from Hold with a $79 price target at Argus.

• [By John Maxfield]

  If you're anything like me, two things went through your head when you saw this. First, you regret that you missed out on the investment opportunity. Since the end of 2009, shares in all three of these companies, led by Dollar Tree (NASDAQ: DLTR  ) , have simply trounced the broader market. Even the worst performer of the bunch, Family Dollar (NYSE: FDO  ) , beat it by nearly a factor of two.

Top Undervalued Companies To Own For 2014: Caterpillar Inc.(CAT)

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

Advisors' Opinion:

• [By Roland Head]

  Dow constituent Caterpillar (NYSE: CAT  ) reported disappointing first-quarter earnings this morning. The company earned $1.31 per share, whereas analyst estimates compiled by Bloomberg had called for EPS of $1.38. Revenue of $13.2 billion fell short of expectations of $13.7 billion. Caterpillar cited a slowdown in the mining sector, for which it provides heavy machinery. Nevertheless, the company is up 1.2% in premarket trading.

• [By Matt Thalman]

  Before we hit the Dow losers, let's look at this week's best-performing component: Caterpillar (NYSE: CAT  ) . After being one of the biggest losers for two weeks, with the stock declining 0.42%, shares of Caterpillar rose 6.12% this past week. Many analysts have contributed Caterpillar's rising share price with rising gold prices this week. As concerns about inflation creep into investors' minds, gold is seen as a safe haven and a shield against losing buying power, and increasing precious-metal prices help mining companies and mining equipment manufacturers such as Caterpillar. But despite a strong one-week performance, shares of Caterpillar are still down 2.72% year to date. �

Time Warner Cable Q3 income falls

Time Warner Cable said Thursday its third quarter net income fell 34% from a year ago to $532 million as its cable TV customers canceled their service following the company's dispute with CBS over fees.

Its adjusted earnings per share of $1.69 beat analysts' estimate of $1.65.

TWC lost 306,000 video customers during the quarter as it turned off the No. 1 prime-time network at several key markets, including New York and Los Angeles, for a month. The nation's second largest cable service provider also was engaged in a similar dispute with Journal Communications, a Wisconsin-based TV station owner, for about two months.

Revenue for the residential TV segment – its largest source of revenue – fell 4.5% to $2.6 billion. "Subscriber activity in the quarter was negatively impacted by programming disputes with CBS and Journal Communications," TWC said.

Still, quarterly revenue grew 2.9% to $5.5 billion as more customers ordered broadband Internet at home and its business services unit reported a sales increase of more than 20%.

Revenue for the high-speed data business rose 14.2% to $1.46 billion. Average monthly revenue per residential customer totaled $105.06, a 1.9% increase.

Time Warner Cable pulled CBS from its lineup on Aug. 2 as the two companies failed to reach an agreement on a new retransmission contract. Cable and satellite TV providers pay station owners retransmission fees for the right to carry their signals.

As a result, more than 3 million TWC customers in eight markets were unable to watch the network until early September, when the two sides finally reached an agreement.

Shares of Time Warner Cable ended Thursday up 2.8% to $120.15.

Will LinkedIn’s new ‘Intro’ feature attract h…

SEATTLE -- LinkedIn's new Intro functionality, launched by CEO Jeff Weiner earlier this week, is intended to make the business networking service more mobile friendly.

But it also runs the risk of making LinkedIn more attractive to hackers. At least that's the early reaction from two prominent security analysts.

James Lyne, Global Head of Security Research for anti-malware company Sophos, says in a blog posting that LinkedIn has "put up a big sign advertising to cyber criminals, nation states and others 'hack here, we've got loads of juicy data'. "

Intro ties into Apple's iOS native e-mail application. It is designed to re-configure your e-mail to proxy through LinkedIn servers. This redirection enables LinkedIn to insert a banner that appears to be integrated with the application natively. LinkedIn, in effect, has become a man-in-the-middle of your e-mail flow; its servers sit between you and your actual e-mail provider.

From a security and privacy standpoint, this introduces fresh opportunities for bad guys, says Carl Livitt, Senior Security Researcher at security consultancy Bishop Fox. Livitt and Lyne are among the first security experts to react strongly to Intro.

Julie Inouye, LinkedIn's corporate communications director, says the company has taken extensive security and privacy precautions.

"We take the privacy and security of our members' data very seriously and have taken a thoughtful approach to ensure we've put the right security precautions in place for the LinkedIn Intro product," Inouye told CyberTruth.

Inouye points out that security precautions include: isolating the Intro environment as a separate high security segment from the rest of LinkedIn systems; hardening parts of its infrastructure related to delivering the service; retaining an outside vendor to review the code dealing with transmission of credentials and handling email content; ensuring that credentials and e-mail content are never stored unencrypted; and continuously monitoring the! Intro platform for security and availability issues.

Even so, in a CyberTruth interview, Bishop Fox's Livitt drilled down on his concerns:

CT: So what do you believe to be the core security issue introduced by Intro?

Livitt: You can bet your last dollar that enterprising hackers and spammers will view Intro as a potential goldmine. Intro supports some of the biggest names in email: Yahoo!, Gmail, AOL. And it's all centralized. Further, in most cases LinkedIn is not actually issuing new passwords for their email servers – they simply 'pass through' your real credentials to your real email provider.

Imagine if someone were to compromise the Intro platform. They would gain access to the usernames and passwords of at least every Yahoo! and AOL user; Gmail users would not be affected in the same way because of OAuth. There is also a rather pervasive concern that LinkedIn has a poor security track record and there is corresponding concern about the design, implementation, and due diligence that has gone into creating the Intro service.

Then there's the human side. Is it okay to hand over all of your emails to someone in exchange for convenience? Is it acceptable for a third-party to have the stated aim of modifying your emails? Is it ok to accept 3rd iPhone configuration profiles as part of a free service?

CT: What market forces do you think drove LinkedIn to try this?

Livitt: I can only speculate. The ability to mine e-mails for information about users so that advertising can be targeted more effectively. The persistent branding of all e-mails with LinkedIn's service to embed themselves into the psyche of users. The ability to intercept and act upon the corporate communications of a large user base would be a business intelligence coup . . . Maybe we should have seen this coming after LinkedIn bought Rapportive.

CT: Anybody else doing anything similar to this?

Livitt: Some of the big MDM (mobile device management) providers employ techniques similar t! o what In! tro is doing, but they have mature solutions. MDMs like AirWatch, Goodand Fiberlink provide enterprise solutions for companies to manage the security of mobile devices by pushing security configuration profiles to iPhones and Androids. This gives them capabilities to manage apps and remotely wipe the phone. This is exactly the means by which LinkedIn is now pushing a new e-mail profile to iPhones. I know of no other social networking providers who do this. Facebook does ask for your e-mail credentials in order to collect your contacts, but none of your e-mail passes through their systems.

CT: Have you contacted them about this?

Livitt: We haven't heard anything from LinkedIn, nor have we actively pursued dialogue with them. That said, the risks introduced by their applications are by design. This isn't a security vulnerability that can be patched.

CT: Anything else?

Livitt: This will be an interesting social experiment – how many people do you think will actually hand over their e-mails to LinkedIn in exchange for the convenience of having LinkedIn embedded into their e-mail client? I have no idea, but it will be fascinating to find out.

Best Penny Stocks To Watch For 2014

I cringed at the headline: "Why decimalization is a bad idea." It's the second article I had seen in as many days apparently supporting a proposed new Congressional bill that I find incredibly stupid.

Of course, I'd also misread the headline. What it actually said was "Why�dedecimalization is a bad idea" [emphasis mine]. And it wasn't just the headline that Felix Salmon nailed, as he concluded in the post that "there's no way that small investors can possibly benefit from this."

Amen.

But let's backtrack for a moment. The "problem" this bill attempts to rectify is that there are many small public companies out there that don't have much Wall Street research coverage. The reason is that trading is so sparse and spreads -- that is, the difference between the bid and ask prices -- are so thin that there's little money for Wall Street firms to make trading the stocks and, thus, little reason to follow them closely. This situation was a result of "decimalization" -- the changeover from quoting stocks in fractions to decimals, which allowed bid/ask spreads to fall in many cases to just a penny.

Best Penny Stocks To Watch For 2014: First Financial Northwest Inc.(FFNW)

First Financial Northwest, Inc. operates as the holding company for First Savings Bank Northwest that provides community-based savings bank services in Washington. Its deposit products include noninterest bearing accounts, NOW accounts, money market deposit accounts, statement savings accounts, and certificates of deposit. The company?s loan products portfolio comprises one-to-four family residential loans, multifamily loans, commercial real estate loans, construction/land development loans, and business loans, as well as consumer loans, including home equity loans, personal lines of credit, second mortgage loans, and savings account loans. First Financial Northwest, Inc., through another subsidiary, First Financial Diversified, Inc., offers escrow services. The company primarily serves customers in the King, Pierce, Snohomish, and Kitsap counties of Washington through a full-service banking office in Renton, Washington. First Financial Northwest, Inc. was founded in 1923 and is based in Renton, Washington.

Advisors' Opinion:

• [By Jim Royal]

  One of my favorite reasons to reinvest in stocks I already own is when an uncertain, but favorable catalyst occurs, but the stock does little. So my Special Situations portfolio is adding $1,000 to each of the following three stocks: Cincinnati Bell (NYSE: CBB  ) , Bridgepoint Education (NYSE: BPI  ) , and First Financial Northwest (NASDAQ: FFNW  ) . Read on to see why.

Best Penny Stocks To Watch For 2014: Micron Technology Inc.(MU)

Micron Technology, Inc., together with its subsidiaries, engages in the manufacture and marketing of semiconductor devices worldwide. Its products include dynamic random access memory (DRAM) products that provide data storage and retrieval, which include DDR2 and DDR3; and other specialty DRAM memory products, including DDR, SDRAM, DDR and DDR2 mobile low power DRAM, pseudo-static RAM, and reduced latency DRAM. The company also offers NAND flash memory products, which are electrically re-writeable and non-volatile semiconductor devices that retain content when power is turned off. In addition, it provides NOR flash memory products that are electrically re-writeable and non-volatile semiconductor memory devices; phase change memory products; and image sensor products. Micron Technology?s products are used in a range of electronic applications, including personal computers, workstations, network servers, mobile phones, flash memory cards, USB storage devices, digital still c ameras, MP3/4 players, and in automotive applications. It sells its products to original equipment manufacturers and retailers through internal sales force, independent sales representatives, and distributors, as well as through a Web-based customer direct sales channel. The company was founded in 1978 and is headquartered in Boise, Idaho.

Advisors' Opinion:

• [By WALLSTCHEATSHEET.COM]

  Micron has more upside potential for a trade, but capital preservation has always been a priority in this column. Therefore, Micron can�� be recommended until more operational improvements have been made. Another factor is rising interest rates, which will eventually have an effect on the stock market. When this happens, Micron will be highly susceptible to broader market downside momentum.

• [By Jake L'Ecuyer]

  (c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

    Around the Web, We're Loving... Learn to Use Trading Platforms Like Hedge Fund Traders do Rumsfeld: Denial of Benefits to Fallen Soldiers' Families 'Inexcusable' Come See How the Pro's Trade in this Exclusive Webinar Facebook, Baidu Lead Big Caps Beating Shutdown What Should You Know About AMZN? Most Popular Short Sellers Pile On Facebook and Google (FB, GOOG, ZNGA) CORRECTION: Micron Falls After Confusion on Better-Than-Expected Q4 Results (MU) Jim Chanos Talks Long, Short And Ugly Trades Jefferies Reiterates Buy on Amarin Corporation on Continued Positive Outlook iPhone 5C Might Be 50% Less Popular Than Apple Anticipated A Sell Signal Worth Paying Attention To
• [By Monica Gerson]

  Analysts are expecting Micron Technology (NASDAQ: MU) to have earned $0.25 per share on revenue of $2.71 billion in the fourth quarter. Micron shares rose 1.10% to $18.35 in after-hours trading.

• [By Daniel Putnam]

  Netflix (NFLX) is the only chart pictured, but Pandora (P), Micron Technology (MU) and TripAdvisor (TRIP) are all among this year�� big winners whose uptrends remain firmly intact.

Top Safest Stocks To Invest In Right Now: Wonder Auto Technology Inc.(WATG)

Wonder Auto Technology, Inc., through its subsidiaries, engages in the design, development, manufacture, and marketing of electrical parts, suspension products, and engine components. It offers starters, alternators, engine valves, and tappets in the People?s Republic of China, South Korea, and Brazil, as well as airbags and seatbelts in People?s Republic of China. The company?s products are primarily used in a range of passenger and commercial automobiles. It also manufactures and sells rectifier and regulator products for use in alternators; and various rods and shafts for use in shock absorbers, alternators, and starters. Its customers include automakers, engine manufacturers, and auto parts suppliers. Wonder Auto Technology, Inc. is headquartered in Jinzhou City, the People?s Republic of China.

Best Penny Stocks To Watch For 2014: NET Servicos de Comunicacao S.A.(NETC)

Net Servicos de Comunicacao S.A., through its subsidiaries, provides cable television, Internet access, and voice services in Brazil. It offers cable television services under the ?NET? brand name through various cable networks located in the largest cities of Brazil. The company also offers broadband Internet access services under the ?NET VIRTUA? brand name by using Embratel's IP backbone infrastructure. In addition, it provides voice services under the ?NET FONE VIA EMBRATEL? brand name jointly with Embratel. Further, the company offers integrated video, broadband, and voice services. Net Servicos de Comunicacao S.A. was founded in 1994 and is headquartered in Sao Paulo, Brazil.

Best Penny Stocks To Watch For 2014: IRIDEX Corporation(IRIX)

IRIDEX Corporation provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat eye diseases in ophthalmology, and skin conditions in dermatology in the United States and internationally. It offers various ophthalmic products, such as infrared photocoagulator consoles, visible (green) and visible (yellow) photocoagulator consoles, and multi-wavelength laser system configurations; and ophthalmic delivery devices comprising TruFocus laser indirect ophthalmoscopes, slit lamp adapters, operating microscope adapters, EndoProbes, G-Probes, and DioPexy Probes. The company offers its ophthalmic products to treat age-related macular degeneration, diabetic retinopathy, glaucoma, retinal tears and detachments, retinopathy of prematurity, ocular tumors, and macular holes. It also offers aesthetics products, which include combination infrared/visible wavelength laser, visible (green), and infrared consoles. In addition, the company offers aestheti cs delivery devices, such as Dermastat Handpieces that are used as tracing instruments for the treatment of small cutaneous surface lesions; DioLite Handpieces, which are handheld instruments used in the treatment of vascular and pigmented skin lesions; VariLite Handpiece, a handheld instrument used in the treatment of vascular and pigmented cutaneous skin lesions, and small area hair reduction; and ScanLite scanner, a computer pattern generator for the treatment of larger-area vascular and pigmented skin lesions. IRIDEX Corporation sells its products to ophthalmologists specializing in retina, glaucoma, and pediatrics; dermatologists; plastic surgeons; research and teaching hospitals; government installations; surgical centers; and hospitals through direct sales force and distributors. The company was formerly known as IRIS Medical Instruments, Inc. and changed its name to IRIDEX Corporation in November 1995. IRIDEX Corporation was founded in 1989 and is headquartered in Mo untain View, California.

Best Penny Stocks To Watch For 2014: IRIS International Inc.(IRIS)

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

Best Penny Stocks To Watch For 2014: Trailer Bridge Inc.(TRBR)

Trailer Bridge, Inc., an integrated trucking and marine freight carrier, provides freight transportation services between the continental United States, Puerto Rico, and the Dominican Republic. It provides services through southbound containers and trailers, as well as through marine vessels that are configured to carry 48 inch and 53 inch long, and 102 inch wide high-cube equipment. The company also involves in moving new and used automobiles, non-containerized or freight not in trailers, and freight moving in shipper owned or leased equipment. It offers highway transportation services in the continental United States; and marine transportation services between Jacksonville, Florida, San Juan, Puerto Rico and Puerto Plata, and the Dominican Republic. The company also provides rail transportation services. In addition, it engages in chartering its vessels that are not in liner service to third party operators. The company ships furniture, consumer goods, raw materials for manufacturing, electronics, new and used automobiles, and apparel to Puerto Rico; healthcare products, pharmaceuticals, electronics, shoes and recyclables from Puerto Rico; raw materials for manufacturing to the Dominican Republic; and apparel, raw materials for manufacturing, and recyclables from the Dominican Republic. As of December 31, 2010, it operated a fleet of 141 tractors comprising of 79 company owned units and 62 leased and owner operator units; 2 736' triple-deck ro/ro ocean-going barges and 5 triplestack box carriers; and 3,957 high cube containers, 3,157 chassis, 164 high-cube trailers, and 299 vehicle transport modules, as well as leased 435 chassis and 531 high-cube containers. Trailer Bridge, Inc. was founded in 1991 and is headquartered in Jacksonville, Florida.

Best Penny Stocks To Watch For 2014: Accelr8 Technology Corporation(AXK)

Accelr8 Technology Corporation focuses on the research and development, and commercialization of proprietary surface chemistry formulation and quantitative bio-analytical measurement instruments. The company is developing BACcel system, a rapid diagnostic platform for diagnosis in life-threatening bacterial infections. It also develops and licenses OptiChem surface coatings for use in microarraying components. The company was founded in 1982 and is based in Denver, Colorado.

Can Google Continue to Trend Higher?

With shares of Google (NASDAQ:GOOG) trading around $1045, is GOOG an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Google is a global technology company focused on improving the ways people engage with information. The business is based on the following areas: search, advertising, operating systems and platforms, and enterprise. The company generates revenue primarily by delivering online advertising. Google is a search giant with most of the market share, largely because of its execution and delivery. An increasing number of consumers and companies worldwide are coming online, which will surely increase the amount of eyes on the company's ads and, in turn, advertising revenue. At this rate, look for Google to remain on top of the Internet world.

Google agreed to pay $17 million to 37 states this week for evading cookie-blocking controls in Apple's (NASDAQ:AAPL) Safari browser, but industry experts suggest that the effect the settlement will have on the privacy debate is more significant that than the money penalty itself.

T = Technicals on the Stock Chart Are Strong

Google stock has has been exploding to the upside in the past several years. The stock is currently trading near all-time highs and looks poised to continue. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Google is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Google Options	18.44%	53%	53%

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

	Put IV Skew	Call IV Skew
December Options	Flat	Average
January Options	Flat	Average

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

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

E = Earnings Are Increasing Quarter-Over-Quarter

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

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	21.08%	-5.53%	13.60%	17.06%
Revenue Growth (Y-O-Y)	11.94%	15.52%	31.23%	24.87%
Earnings Reaction	13.79%	-1.55%	4.43%	5.49%

Google has seen increasing earnings and revenue figures over the last four quarters. From these numbers, the markets have had conflicting feelings about Google’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has Google stock done relative to its peers, Yahoo (NASDAQ:YHOO), Microsoft (NASDAQ:MSFT), Baidu (NASDAQ:BIDU), and sector?

	Google	Yahoo	Microsoft	Baidu	Sector
Year-to-Date Return	47.88%	82.46%	40.98%	56.27%	57.89%

Google has been an average relative performer, year-to-date.

Conclusion

Google is an Internet giant that provides valuable search and advertising services to a growing user base worldwide. The company agreed to pay $17 million to 37 states this week for evading cookie-blocking controls in Apple's Safari browser. The stock has been exploding higher in recent years and is currently trading near all time high prices. Over the last four quarters, earnings and revenues have been increasing. However, investors have had conflicting feelings about recent earnings announcements. Relative to its strong peers and sector, Google has been an average year-to-date performer. Look for Google to OUTPERFORM.

Top 10 Casino Companies To Own For 2014

Elray Resources, Inc. (ELRA)

Today, ELRA remains (0.00%) +0.000 at $.160 thus far (ref. google finance Delayed:� 1:13PM EDT July 2, 2013).

Elray Resources, Inc. through its online gaming and turnkey solution subsidiary Elray Gaming, previously reported the launch and operations of the Golden Galaxy online casino.

Golden Galaxy is a licensed online casino, and whilst it complies fully with the UIGEA (The Unlawful Internet Gambling Enforcement Act of 2006) and does not accept US players it is targeted towards other regulated and rapidly growing markets. Golden Galaxy’s software is provided and maintained by Playtech Limited, the world’s largest online gaming software supplier traded on the London Stock Exchange�� Main Market, offering cutting-edge, value added solutions to the industry’s leading operators. Since Playtech’s inception in 1999 the world�� leading online gaming software company, and bears the official approval of the Technical System Testing of North America Inc. (TST), which has periodically verified that the games are true and fair.

Top 10 Casino Companies To Own For 2014: Umax Group Corp (UMAX)

Umax Group Corp., incorporated on March 21, 2011, is a development-stage company. The Company focuses to develop and distribute its product to the arcade and entertainment industry. The Company�� products include Rocket Launch, is Strength testing game which allows players to test their pushing/ throwing strength; Space Hockey, is a two player hockey game - each player must score as many as possible goals and Boxer, is a Simple punch testing game: insert coin/token/bill, press start button, hit the punch bag, wait for result, and try to beat opponent�� score or high score.

As of April 30, 2013, the Company had no revenues. The Company has developed its business plan, and executed exclusive distribution contract GEO a private enterprise, where it engages GEO as an independent contractor for the specific purpose of developing, manufacturing and supplying games for the Company.

Top 10 Casino Companies To Own For 2014: (XTRN)

Las Vegas Railway Express Inc. focuses to re-establish a conventional passenger train service between the Las Vegas and Los Angeles metropolitan areas. It plans to establish a ?Vegas-style? passenger train service. The company is based in Las Vegas, Nevada.

Top 10 Casino Companies To Watch For 2014: MGM Resorts International(MGM)

MGM Resorts International, through its subsidiaries, primarily owns and operates casino resorts in the United States. The company?s resorts offer gaming, hotel, dining, entertainment, retail, and other resort amenities. It also owns and operates golf courses and a golf club. As of December 31, 2010, the company owned and operated 15 properties located in Nevada, Mississippi, and Michigan; and has 50% investments in 4 other casino resorts in Nevada, Illinois, and Macau. In addition, MGM Resorts International has an agreement with the Mashantucket Pequot Tribal Nation, which owns and operates a casino resort in Connecticut, to carry the ?MGM Grand? brand name. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was founded in 1986 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Travis Hoium]

  The steady economic recovery in the U.S. has helped MGM Resorts (NYSE: MGM  ) , Las Vegas Sands (NYSE: LVS  ) , and Wynn Resorts (NASDAQ: WYNN  ) turn Las Vegas from a drag to a positive line on the income statement. But for each, Macau continues to be the most important.

• [By Lisa Abramowicz]

  ��t�� allowed companies such as ourselves to continue to access the capital markets,��Dan D��rrigo, the executive vice president and chief financial officer of Las Vegas-based casino company MGM Resorts International (MGM), said in a Sept. 17 telephone interview. During the crisis, ��e still had access but at much more costly rates to our company,��he said.

• [By Travis Hoium]

  The next step
  The top end of the market has been doing well over the past two years, and Las Vegas Sands (NYSE: LVS  ) and Wynn Resorts (NASDAQ: WYNN  ) have been the beneficiaries. Las Vegas Sands's Las Vegas�revenue was up 7% in the first quarter, while Wynn's�was up 6.6%. But MGM Resorts (NYSE: MGM  ) and Caesars Entertainment (NASDAQ: CZR  ) haven't seen the same success in the lower end of the market.

Top 10 Casino Companies To Own For 2014: Wynn Resorts Limited(WYNN)

Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates Wynn Las Vegas casino resort in Las Vegas, which includes approximately 22 food and beverage outlets comprising 5 dining restaurants; 2 nightclubs; 1 spa and salon; 1 Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; meeting space; and foot retail promenade featuring boutiques. Wynn Las Vegas casino resort also features approximately 147 table games, 1 baccarat salon, private VIP gaming rooms, 1 poker room, 1,842 slot machines, and 1 race and sports book. It also owns and operates an Encore at Wynn Las Vegas resort, a destination casino resort located adjacent to Wynn Las Vegas that features a 2,034 all-suite hotel, as well as a casino with 95 table games, 1 sky casino, 1 baccarat salon, private VIP gaming rooms, and 778 slot machines. In addition, the company operates Wyn n Macau casino resort located in the Macau Special Administrative Region of the People?s Republic of China. Wynn Macau casino resort features approximately 595 hotel rooms and suites, 410 table games, 935 slot machines, 1 poker room, 1 sky casino, 6 restaurants, 1 spa and salon, lounges, meeting facilities, and retail space featuring boutiques. Further, it operates Encore at Wynn Macau resort located adjacent to Wynn Macau. Encore at Wynn Macau resort features approximately 410 luxury suites and 4 villas, as well as casino gaming space, including a sky casino consisting of 60 table games and 80 slot machines, 2 restaurants, 1 luxury spa, and retail space. The company was founded in 2002 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Travis Hoium]

  The steady economic recovery in the U.S. has helped MGM Resorts (NYSE: MGM  ) , Las Vegas Sands (NYSE: LVS  ) , and Wynn Resorts (NASDAQ: WYNN  ) turn Las Vegas from a drag to a positive line on the income statement. But for each, Macau continues to be the most important.

Top 10 Casino Companies To Own For 2014: Pinnacle Entertainment Inc.(PNK)

Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. It operates casinos, such as L'Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. As of May 26, 2011, it operated seven casinos and one racetrack. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.

Advisors' Opinion:

• [By Dan Radovsky]

  Pinnacle Entertainment (NYSE: PNK  ) has reached an agreement in principle with the Bureau of Competition of the Federal Trade Commission that would allow the company to complete its proposed acquisition of Ameristar Casinos (NASDAQ: ASCA  ) , Pinnacle announced today.

• [By Ben Levisohn]

  Pinnacle Entertainment (PNK) has gained 56% this year; Las Vegas Sands (LVS) has climbed 38%. And Deutsche Bank has nice things to say about both today.

  Bloomberg

  First Pinnacle. Deutsche Bank’s Carlo Santarelli ponders the stock’s big move and comes away still seeing value in its shares. He writes:

  When we upgraded PNK in April, our thesis centered on the FCF strength of the combined entities [Pinnacle completed its acquisition of Ameristar Casinos on Aug. 14], a handful of favorable catalysts, easing regional gaming comps, & an inexpensive relative valuation. Given the shares’ sizeable move since then, we believe it is worth revisiting the investment case. Post the announcement of several asset sales and the closing of the transaction, we are adjusting our estimates, raising our PT to $30 from $24, and maintaining our bullish view at current levels given what we still believe to be an attractive free cash flow valuation, meaningful potential synergy realization beyond the $40 mm of announced benefits, and a free option on a lagging regional recovery.

  Santarelli also revisited Las Vegas Sands and there too, he likes what he sees. He writes:

  With…LVS at [a share price level] that have been challenging to break from over the last year plus, we believe this time is different and hence we see continued upward momentum…In the case of LVS, we see; 1) meaningful mass market strength continuing through year end, setting the stage for upward company and market estimate revisions for 2014, 2) continued cash flow appreciation and capital returns serving as downside protection and positive catalysts, and 3) continued shared gains, largely driven by table optimization and mass market strength, driving both estimates and sentiment.

  He also likes Wynn Resorts (WYNN), despite its 34% gain.�Santarelli writes:

  As for WYNN, we believe near-term estimates continue to take a back seat to capital return

Top 10 Casino Companies To Own For 2014: Boyd Gaming Corporation(BYD)

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States. As of December 31, 2011, the company owned and operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games, and 11,418 hotel rooms. It also owned and operated 16 gaming entertainment properties located in Nevada, Illinois, Louisiana, Mississippi, Indiana, and New Jersey. In addition, the company owns and operates a pari-mutuel jai-alai facility located in Dania Beach, Florida, as well as a travel agency in Hawaii. Further, it holds a 50% controlling interest in the limited liability company that operates Borgata Hotel Casino and Spa in Atlantic City, New Jersey. Boyd Gaming Corporation was founded in 1988 and is headquartered in Las Vegas, Nevada.

Advisors' Opinion:

• [By Dan Caplinger]

  The real question is whether Zynga can hold off experienced casino operators if online gambling becomes a reality. Already, alliances are forming, with Boyd Gaming (NYSE: BYD  ) and MGM Resorts (NYSE: MGM  ) having linked up with bwin.party -- the same company Zynga tapped for its real-money Zynga Poker -- to help Boyd take advantage of newly legal online gambling in New Jersey. Zynga has the obvious edge with its social savvy, but established casino companies will have huge incentives to defend their turf if Zynga starts to make a serious dent in the industry.

• [By Roberto Pedone]

  One gaming player that's rapidly moving within range of triggering a big breakout trade is Boyd Gaming (BYD), which owns and operates gaming entertainment facilities located in Nevada, Mississippi, Illinois, Louisiana and Indiana. This stock has been blazing a trail to the upside so far in 2013, with shares up sharply by 115%.

  If you look at the chart for Boyd Gaming, you'll notice that this stock has been uptrending strong over the last month and change, with shares moving sharply higher from its low of $11.27 to its intraday high of $14.38 a share. During that move, shares of BYD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BYD into breakout territory above resistance at $13.79 a share, and it's quickly pushing the stock within range of another big breakout trade.

  Traders should now look for long-biased trades in BYD if it manages to break out above its 52-week high at $14.50 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 2.34 million shares. If that breakout triggers soon, then BYD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $18 to $20 a share.

  Traders can look to buy BYD off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $13 a share. One can also buy BYD off strength once it takes out $14.50 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

• [By Travis Hoium]

  Even if a federal bill does pass, there's no guarantee Zynga would win. Online poker is all about gaining a critical mass of users, and it's a uphill battle. MGM Resorts (NYSE: MGM  ) and Boyd Gaming (NYSE: BYD  ) have already partnered with bwin.party for a U.S. online gaming venture. Bwin.party is one of the largest real-money online poker companies in the world, and with PokerStars likely shut out of the U.S. in the near future, this would be a formidable opponent. Caesars Entertainment (NASDAQ: CZR  ) has also had its eyes on online poker for some time, and with the World Series of Poker brand, it has a big draw for players. Caesars thinks so much of online poker that it's spinning off its "growth" assets, and online games are a key part of the new company.

• [By Seth Jayson]

  Boyd Gaming (NYSE: BYD  ) reported earnings on April 24. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), Boyd Gaming met expectations on revenues and beat expectations on earnings per share.

Top 10 Casino Companies To Own For 2014: Penn National Gaming Inc.(PENN)

Penn National Gaming, Inc. and its subsidiaries own and manage gaming and pari-mutuel properties in the United States. It operates approximately 27,000 gaming machines; 500 table games; and 2,000 hotel rooms in 23 facilities in 16 jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. The company was formerly known as PNRC Corp. and changed its name to Penn National Gaming, Inc. in 1994. Penn National Gaming, Inc. was founded in 1982 and is based in Wyomissing, Pennsylvania.

Advisors' Opinion:

• [By Paul Ausick]

  Stocks on the Move: BlackBerry Ltd. (NASDAQ: BBRY) is down 16.4% at $6.50 after announcing that no buyout bid will be forthcoming. Penn National Gaming Inc. (NASDAQ: PENN) is down 76.7% at $13.75 after spinning-off its real-estate holdings into a REIT. Suntech Power Holdings Co. Ltd. (NYSE: STP) is up 15.5% at $1.53 following the acquisition of its major operations in Wuxi.

• [By Paul Ausick]

  Penn National Gaming Inc. (NASDAQ: PENN) completed on Monday the spin-off of its real-estate holdings into a new REIT, Gaming and Leisure Properties Inc. (G&LP) (NASDAQ: GLPI). The spin-off was first announced a year ago. Shares in GLPI are trading at around $46.51 after opening at $45.76 this morning.

• [By Roberto Pedone]

   

  Penn National Gaming (PENN) is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. This stock closed up 1.4% at $56.13 in Monday's trading session.

   

  Monday's Volume: 1.11 million
  
  Three-Month Average Volume: 824,334
  
  Volume % Change: 73%

   

   

  From a technical perspective, PENN jumped modestly higher here right above some near-term support at $54.71 with above-average volume. This move is quickly pushing shares of PENN within range of triggering a breakout trade. That trade will hit if PENN manages to take out some near-term overhead resistance at $57.44 to some past resistance at $58 with high volume.

   

  Traders should now look for long-biased trades in PENN as long as it's trending above Monday's low $55.65 or above more support at $54.71 and then once it sustains a move or close above those breakout levels with volume that this near or above 824,334 shares. If that breakout hits soon, then PENN will set up to re-test or possibly take out its 52-week high at $59.93. Any high-volume move above $59.93 will then give PENN a chance to hit $65.

   

Is BlackBerry Stock Oversold?

With shares of Blackberry (NASDAQ:BBRY) trading around $8, is BBRY an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework.

T = Trends for a Stock’s Movement

BlackBerry is a designer, manufacturer, and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software, and services, it provides platforms and solutions for seamless access to information such as email, voice, instant messaging, SMS, Internet, intranet-based applications, and browsing. Its products and services feature the BlackBerry wireless solution, the Research In Motion Wireless Handheld product line, the BlackBerry PlayBook tablet, software development tools, and other software and hardware.

BlackBerry's latest desperate move involves taking out newspaper ads in an attempt to soothe investors and the few people who still use the company's devices that everything will be all right, Bloomberg reports. The full-page ads, which have been appearing in newspapers around the world, are in the form of an open letter. "These are no doubt challenging times for us and we don't underestimate the situation or ignore the challenges. We are making the difficult changes necessary to strengthen BlackBerry," BlackBerry says in the ads, which are meant to communicate with customers directly.

T = Technicals on the Stock Chart Are Weak

Blackberry stock has been struggling over the past several years. The stock is currently trading near lows for the year as it continues to digest negative news. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Blackberry is trading below its key averages, which signals neutral to bearish price action in the near term.

Source: Thinkorswim

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Blackberry Options	68.80%	16%	14%

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

	Put IV Skew	Call IV Skew
November Options	Steep	Average
December Options	Steep	Average

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	-308.89%	83.84%	178.41%	-96.08%
Revenue Growth (Y-O-Y)	-45.02%	9.37%	-35.97%	-47.21%
Earnings Reaction	-0.99%	-27.76%	-0.89%	-22.73%

Blackberry has seen mixed earnings and decreasing revenue figures over the last four quarters. From these numbers, the markets have been disappointed about Blackberry’s recent earnings announcements.

P = Weak Relative Performance Versus Peers and Sector

How has Blackberry stock done relative to its peers – Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), and Nokia (NYSE:NOK) — and sector?

	Blackberry	Apple	Google	Nokia	Sector
Year-to-Date Return	-32.5%	-6.28%	24.72%	74.94%	16.22%

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

Conclusion

BlackBerry provides innovative wireless communication products to consumers and companies worldwide. The company is reportedly making desperate moves in order to ease investor concerns. The stock has struggled to make positive progress in recent years and is now trading near lows for 2013. Over the last four quarters, earnings have been mixed while revenues have been decreasing, which has left investors disappointed about recent earnings announcements. Relative to its peers and sector, BlackBerry has been a weak year-to-date performer. STAY AWAY from BlackBerry for now.

A Guide To Core-Satellite Investing

Core-satellite investing is a method of portfolio construction designed to minimize costs, tax liability and volatility while providing an opportunity to outperform the broad stock market as a whole. The core of the portfolio consists of passive investments that track major market indices, such as the Standard and Poor's 500 Index (S&P 500). Additional positions, known as satellites, are added to the portfolio in the form of actively managed investments. Read on to find out how this works.

Portfolio Construction
First, look at the core portion of your portfolio. The assets will be allocated to investments that are designed to be managed passively. For example, you could put half of the assets dedicated to stocks into an index fund that tracks the S&P 500.

For the actively managed portion, the goal is to select investments where a portfolio manager's skill provides an opportunity to earn greater returns than those generated by the passive portion of the portfolio. In this example, you could put 10% of the portfolio into a high-yield bond fund and divide the remaining stock portion evenly between a biotechnology fund and a commodities fund. The asset allocation might break down as shown in Figure 1 below.

Investment	Percentage
S&P 500 Index Fund	50%
Actively Managed High-Yield Bond Fund	10%
Actively Managed Biotechnology Fund	20%
Actively Managed Commodities Fund	20%

Figure 1

Keep in mind that this portfolio is simply an example. The core portion of the portfolio can be used to track any index, including those that intentionally reflect a style bias for value over growth, growth over value, government bonds over corporate bonds, domestic markets over foreign markets or whatever you prefer. Similarly, the sky is the limit in the satellite portion.

The Essence of the Strategy
Regardless of the specific investments chosen to fulfill the asset allocation - cost, portfolio volatility and investment returns are the underlying considerations. A brief review of each area provides additional insight:

Costs
The core portion of the portfolio helps to minimize costs because passive investments are almost always less expensive than their active counterparts. Because passive investments track indices, the portfolio changes only when the index changes. Because indices change infrequently, transaction costs and capital gains tax are minimized. Active portfolio management, on the other hand, is based on trading. Each trade generates execution costs and potential tax liabilities in the form of capital gains.

Volatility
Beta is a measure of stock market volatility. Volatility is something many investors prefer to avoid. By dedicating a large portion of a portfolio to passive investments, the beta of the total portfolio should not come in high. Adding investments, such as a commodities fund, which are not correlated to the movements of the stock market as a whole, helps limit overall volatility when the markets are in flux.

Returns
Active managers seek to outperform their benchmarks. By allocating a minority of the portfolio to active management, the opportunity is in place for an active manager to outperform the benchmark, thus adding to the return generated by the overall portfolio and resulting in benchmark-beating returns for the portfolio as a whole.

Implementation Strategies
A core-satellite portfolio can be implemented in a myriad of ways. An mutual fund portfolio, as shown in Figure 1, is just one potential implementation. This strategy can also be implemented using various combinations of separately managed accounts, exchange traded funds (ETFs), mutual funds, stocks, bonds and any other combination of core index-tracking investments coupled with alpha-seeking investments.

The Bottom Line
The core-satellite approach provides an opportunity to access the best of all worlds. Better-than-average performance, limited volatility and cost control all come together in a flexible package that can be designed specifically to cater to your needs.

Shutdown closes tap on new beers

FORT COLLINS, Colo. -- The federal government shutdown is giving some folks one more reason to cry in their beers: An obscure but powerful arm of the Treasury Department has stopped approving new brews.

All new beers that get bottled or canned to be sold across state lines must be approved by the Alcohol and Tobacco Tax and Trade Bureau, known in the industry as the TTB. Federal workers must approve the label, as well as the recipe if it uses non-traditional ingredients, which many seasonal beers contain.

While the TTB as stopped approving new recipes and labels, workers there are still collecting brewery taxes.

Any delays in approvals create a "domino effect," said Carla Villa, a spokeswoman for the New York-based Brooklyn Brewery, which has several new labels pending: "It's this one thing that then affects all these other things. We can't launch beers on time, which means our distributors can't sell it, which means our customers can't buy it."

STORY: Craft beer movement comes to a head

The TTB shutdown is a hot topic of conversation for brewers gathering in Denver this week for the Great American Beer Festival. Among those attending Wednesday was Jim Koch, founder and brewer of Boston-based Samuel Adams.

In an email, Koch said that while it's important to keep the focus on how ordinary people are being hurt by the shutdown, "we will quickly see the downstream effects on businesses and industries. ... In short, new breweries cannot start up and new beers cannot be sold."

The shutdown doesn't affect existing beers, like New Belgium Brewing Cos.' popular Fat Tire, or Anheiser-Busch's Budweiser. But it leaves Fort Collins-based New Belgium awaiting approval of five new labels and three new beers, including a spring seasonal.

"We have a lot of pieces in play, so when things go sideways, that's a problem," New Belgium spokesman Bryan Simpson said. "We aren't delayed yet, but there will probably be a backlog. Beers that haven't been approved don't get to market.! "

Simpson said New Belgium worries that a lengthy TTB delay could mean the brewery's fall/winter seasonal offerings will run out without a spring seasonal to replace them. Simpson said the brewery faces having to pay extra to rush labels through the printing process when they're eventually approved.

"We won't rush the beer," he promised.

The growing backlog of TTB approvals will "inevitably" delay offerings from Deschutes Brewery of Bend, Ore., said marketing manager Jason Randles. "The shutdown is affecting us just like everyone else. We have labels that aren't getting approved.

The TTB closure doesn't affect some smaller breweries like Equinox in Fort Collins, which sells only one bottled beer whose label has been previously approved and doesn't change from year to year, said founder Colin Westcott.

"For us, it's just business as normal," he said. "And of course they're continuing to collect taxes."

A woman who answered the phone at the TTB offices Wednesday said no one who was there was permitted to speak with the media.

Hughes also reports for the Fort Collins Coloradoan.

Why Violin Memory, Inc. Shares Plummeted

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

What: Shares of Violin Memory, (NYSE: VMEM  ) plunged 48% Friday after the high-speed data storage specialist came up well short of analysts' estimates with its first quarterly report as a public company.

So what: Quarterly revenue rose 37% year over year to $28.3 million, which translated to an adjusted net loss of $25.4 million, or $0.63 per share. By way of comparison, in the same quarter last year, the company recorded a net loss of $21.3 million, or $1.50 per share.

By contrast, analysts were looking for an adjusted net loss of just $0.44 per share on sales of $31.7 million.

Worse yet, Violin Memory also forecast fourth-quarter revenue in the range of $30, to $32 million, with non-GAAP gross margin of 53% to 55%, and non-GAAP operating expenses in the range of $39 million to $40 million. Meanwhile, analysts were modeling sales of $43.62 million. 

Now what: Remember, on a GAAP basis, the company lost $34.1 million last quarter, and had roughly $134.2 million remaining in cash, equivalents, and short-term investments as of October 31. As a result, while next quarter's projected operating expenses should reflect a solid sequential improvement over Q3's $48.4 million, Violin Memory needs to show investors it can grow sales quickly enough to close the gap before its cash runs out.

Until that happens, and even with shares trading 65% below the company's $9 IPO price and 55% lower than its first-day close, I think investors would be wise to steer clear.

Consider this winner instead
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Will JPMorgan Chase Move Higher?

With shares of JPMorgan Chase & Co. (NYSE:JPM) trading around $57, is JPM an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

JPMorgan Chase is a financial holding company that provides various financial services worldwide. The company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management, and private equity. Financial services companies like JPMorgan Chase are essential for well-functioning economies around the world

JPMorgan Chase announced a $13 billion settlement with the U.S. Department of Justice on Tuesday. The $13 billion sum is a record fine paid by a company to the federal government, but the settlement is also significant because it does not absolve the bank or its employees from any possible criminal charges. The Justice Department said that JPMorgan's toxic mortgages contributed greatly to the financial crisis and that JPMorgan employees knew they were selling mortgages to investors that did not meet guidelines.

T = Technicals on the Stock Chart Are Strong

JPMorgan Chase stock has has done relatively well in the past couple of years. The stock is currently trading near highs for the year and looks poised to continue. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, JPMorgan Chase is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
JPMorgan Chase Options	19.76%	26%	24%

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

	Put IV Skew	Call IV Skew
December Options	Flat	Average
January Options	Flat	Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q3	2013 Q2	2013 Q1	2012 Q4
Earnings Growth (Y-O-Y)	-112.14%	32.23%	33.61%	54.89%
Revenue Growth (Y-O-Y)	-7.67%	13.67%	-3.57%	10.16%
Earnings Reaction	-0.01%	-0.30%	-0.60%	1.01%

JPMorgan Chase has seen increasing earnings and mixed revenue figures over the last four quarters. From these numbers, the markets have had mixed feelings about JPMorgan Chase’s recent earnings announcements.

P = Average Relative Performance Versus Peers and Sector

How has JPMorgan Chase stock done relative to its peers, Bank of America (NYSE:BAC), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), and sector?

	JPMorgan Chase	Bank of America	Citigroup	Wells Fargo	Sector
Year-to-Date Return	29.84%	32.73%	30.71%	29.43%	31.67%

JPMorgan Chase has been an average relative performer, year-to-date.

Conclusion

JPMorgan Chase is a bellwether in the banking space that forms an essential part of the United States financial system. The company announced a $13 billion settlement with the U.S. Department of Justice on Tuesday. The stock has done relatively well in recent months but is now trading near highs for the year. Over the last four quarters, earnings have been increasing while revenues have been mixed, which has produced conflicting feelings among investors. Relative to its peers and sector, JPMorgan Chase has been an average year-to-date performer. WAIT AND SEE what JPMorgan Chase does this quarter.

Banks warned on high-interest loans

NEW YORK (CNNMoney) Federal regulators issued a warning Thursday to banks that offer high-interest "deposit advance" loans, similar to payday loans.

Deposit advance loans are short-term loans offered by firms including U.S. Bank (USB, Fortune 500), Wells Fargo (WFC, Fortune 500) and Regions (RF, Fortune 500), typically in increments of a few hundred dollars or less.

Like payday loans, they often carry stiff fees and interest rates that can stretch well into the triple digits on an annualized basis. But unlike payday loans, they are limited to a bank's account holders, with the lender automatically deducting repayment from the customer's direct deposit.

While advertised as a convenient source for emergency cash, these loans can quickly become a recurring expense for borrowers.

"[T]hese products can trap customers in a cycle of high-cost debt that they are unable to repay," Thomas Curry, head of the Office of the Comptroller of the Currency, said in a statement.

The OCC and the Federal Deposit Insurance Corporation said deposit advance loans could potentially violate the Truth in Lending Act and other consumer-protection laws.

The FDIC said it recognized "the demand for responsible small-dollar credit products," but called for such loans to be affordable and underwritten with attention to the borrower's ability to repay. Bank examiners will assess deposit advance programs with an eye to protecting consumers, the OCC said, flagging those with poor underwriting standards and excessive fees.

Regulators have previously issued similar guidance on payday and subprime loans.

Consumer advocates have long criticized deposit advance loans, and called for the country's other major banking regulator, the Federal Reserve, to address them as well.

"At long last, two key financial watchdogs have taken decisive action against the predatory loan practices of national banks and federal savings associations," Americans for Financial Reform said.

  Warren to Yellen: Focus on banks

U.S. Bank, Wells Fargo and Regions said they were reviewing the guidance to see how it would affect their lending pro! grams. The Consumer Bankers Association, an industry group, warned that the regulators could end up driving consumers to pawnshops and unregulated lenders.

A survey on payday loans released earlier this year by the Pew Charitable Trusts found that 72% of borrowers believed more regulation of the industry was needed, though 48% said they thought payday loans help borrowers more than they hurt them.

"Payday borrowers' experiences -- receiving credit to cover expenses but then ending up spending far more than suggested by the loan's two-week price tag -- lead to complicated and conflicted feelings," the report said.

Sears’ loss widens; sales soften at Kmart, Sears

HOFFMAN ESTATES, Illinois (AP) — Sears' third-quarter loss widened as the ailing department store operator's results were hurt by weaker sales at its Kmart and Sears stores.

The quarterly results underscore the challenges Sears faces as it heads into the critical holiday shopping season. This period is important for retailers because it can comprise up to 40% of their annual revenue.

The retailer is also in the midst of shifting its business, with less emphasis on its brick-and-mortar stores. It has nearly 2,500 stores in the U.S. and Canada.

"We are transitioning from a business that has historically focused on running a store network into a business that provides and delivers value by serving its members in the manner most convenient for them: whether in store, in home or through digital devices," Chairman and CEO Edward Lampert said in a statement.

RETAIL SALES: October retail sales up 0.4%, beating forecasts

Sears is concentrating on its Shop Your Way Loyalty program, with Lampert saying that the company is enhancing membership benefits and developing digital and social relationships with members. The retailer said that 70% of its sales are made to Shop Your Way members, up from 65 percent in the second quarter.

For the three months ended Nov. 2, Sears Holdings lost $534 million, or $5.03 per share. That compares with a loss of $498 million, or $4.70 per share, a year earlier.

The Hoffman Estates, Ill., company said Thursday that revenue fell 7% to $8.27 billion from $8.86 billion mostly because it had fewer Sears and Kmart stores operating.

Revenue at stores open at least a year dropped 3.1%. The figure fell 4% at Sears' locations and declined 2.1% at Kmart stores.

Revenue at stores open at least a year is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.

Sears, like other stores catering to low to middle income shoppers, is navigating a difficult economic environment. Its shoppers are g! rappling with old worries like juggling their stagnant wages with daily living costs. On top of that, many low-to-middle income shoppers continue to struggle with a 2 percentage-point increase in the Social Security payroll tax since Jan. 1. They're also facing rising health care costs.

Such a tough environment is putting even more pressure on Lampert as he tries to turn the chain around. The storied retailer hasn't adapted as bigger, nimbler rivals such as Wal-Mart and Home Depot have stolen away customers over the years.

The third-quarter results come as Sears announced late last month that it's considering separating its Lands' End catalog business and Sears Auto Center businesses from the rest of the company. The retailer also plans to continue closing some of its unprofitable stores and is selling some store leases in Canada.

Last year, Sears announced plans to restore profitability by cutting costs, reducing inventory, selling off some assets and spinning off others. Those moves helped it reduce net debt by $400 million and generated $1.8 billion in cash from the asset sales in the latest fiscal year.

Its shares finished at $61.70 on Wednesday. They are up 49% so far this year.