IDC Provides Good News for Hewlett-Packard

Hewlett-Packard (NYSE: HPQ  ) is a company still searching for a turnaround. After a tumultuous past marked by a revolving door of executives, former eBay head Meg Whitman came in to right the ship. After instituting many changes and marking down past acquisitions, Whitman promised a turnaround for HP -- one that hasn't quite materialized yet. 

The main problem is that HP is tethered to the declining PC market. But a recent IDC report gives a small bit of respite for the beleaguered PC maker. IDC reports the PC Monitor market isn't shrinking as much as anticipated in the first quarter of 2014. And while this only one part of a huge market, the news is mildly encouraging for PC makers.

Motley Fool tech analysts Jamal Carnette and Nathan Hamilton discuss this for Hewlett-Packard investors. Jamal states that this was an encouraging report for HP; HP increased its unit shipments nearly 9%. So while this doesn't lead us to think this is the turnaround HP investors are looking for, it does point toward more favorable industry headwinds than analysts have been expecting. 

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Southern grocery chain offering same-sex health benefits

  Same-sex couple paying a Kansas 'gay tax' NEW YORK (CNNMoney) More gay and lesbian married couples living in conservative Southern states can get health benefits -- so long as they work for Publix.

The grocery chain is one of the largest in the south, with stores in three states that ban same-sex marriage: Alabama, Georgia and Tennessee.

Starting in January, even employees in those states can enroll their spouses in the company's health and dental plans -- as long as they were married in a different state.

"It's good business for us to offer benefits to all employees, not just those in the states that recognize it," said Maria Brouse, director of media relations at Publix.

Same-sex marriage is currently legal in 35 states and the District of Columbia. North Carolina and South Carolina, where Publix has stores, changed its laws this past fall, which pushed the company to revamp its policy. Florida, where Publix is headquartered, is expected to begin granting marriage licenses next Tuesday.

Publix is not the first company to change course and start offering health benefits to same-sex couples.

About 62% of Fortune 500 companies have already done so, according to the Human Rights Campaign.

  Where it's legal to discriminate against gays at work

At Publix, a special enrollment period will allow already married couples to enroll for benefits during the month of January.

The store offers health benefits to both full-time and part-time employees, as long as they work at least 1,500 hours a year. It currently has about 180,000 workers.

The best CEOs of 2014

CNN's Javier de Diego contributed to this report.

Kellogg trading raises concern about takeover

DETROIT — Heavy trading volume of Kellogg stock continued Friday, but the shares retreated sharply from Thursday, when they surged 6% — the Battle Creek, Mich., cereal maker's biggest one-day gain in five years.

So speculation that Kellogg is a potential acquisition target cooled.

In an e-mail today to the Free Press, Kellogg spokesman Kris Charles said: "We don't respond to rumors and speculation."

The nearly century-old company that grew out of failed attempts to make granola that ended with Corn Flakes, has a market value of more than $23 billion. It has a global reach with many well-known brands, but is still deeply intertwined with Battle Creek and Michigan.

"Everyone isn't really sure what's going on," said Kara Beer, president of the Battle Creek Area Chamber of Commerce." People are just looking for answers. When something like this happens, everyone starts to wonder what's going to happen. But, nobody knows."

Kellogg, an active member of the local chamber, has about 2,000 employees in Battle Creek. But in February it said some jobs might be lost there after it opens a regional service center in Grand Rapids.

Kellogg shares rose to $66.39 by Thursday's close, just below its 52-week high of $67.98. But Friday some traders took profits and the shares fell nearly 4% to $63.77 while 6.8 million shares, or more than three times the average daily volume, changed hands.

Late Thursday Bloomberg News reported that more than 25,000 contracts giving investors the right to buy the stock changed hands.

"This is absolutely the kind of options action that could signal takeover activity," Christopher Rich, head options strategist at JonesTrading Institutional Services in Chicago said, according to Bloomberg. "Usually people sell out-of-the-money calls to generate extra income in a stock like this, but that was not what happened here this afternoon. There are definitely bullish Kellogg call buyers here."

In addition, Trade-Ideas — a company that tracks s! tocks — identified Kellogg as a "barbarian at the gate" candidate, TheStreet reported, referring to a 1989 book about the buyout of RJR Nabisco. The stock watcher drew this conclusion by looking at the company's average dollar volume and overall volume.

TheStreet said Trade-Ideas targets these stocks because it is "exhibiting an unusual behavior while displaying positive price action."

Still, high trading volume doesn't mean a deal is imminent.

Moreover, the company may be protected. One of Kellogg's largest shareholders is the W.K. Kellogg Foundation. The foundation was created in 1930 when the cereal pioneer W.K. Kellogg donated $66 million in company stock. Since then, it has grown to become one of the largest philanthropic foundations in the United States with more than $7 billion in assets.

Kellogg's began with cereal in 1906 as the Battle Creek Toasted Corn Flake Co.

W.K. Kellogg and his brother, Dr. John Harvey Kellogg, initially were trying to make granola. Instead, they created a recipe for cornflakes. Later, the company expanded to bran flakes.

Over the years, the company has grown to a global enterprise operating in 180 countries and diversifying its products to more than cereal, which declined in sales in recent years as Americans turn to alternatives such as fast food breakfasts.

In 2012, Kellogg purchased Pringles potato chips for about $2.7 billion, adding to its snack food brands. It makes Cheez-It, Townhouse crackers and Keebler snack foods.

But cereal is still important to Battle Creek residents.

"When you come to Battle Creek," Beer said, "you can roll down your windows and tell what is being made just by the smell."

Why Geospace Technologies Corp (GEOS) Is Plummeting

NEW YORK (TheStreet) -- Geospace Technologies Corp (GEOS) plunged over Friday's session after notifying the SEC an order it expected to deliver in its third quarter had been postponed.

By market close, shares had taken off 15.1% to $62.89. Trading volume of 1 million was more than five times its three-month daily average.

In its 8-K filing with the SEC, the developer of seismic data instruments said a previously announced $29.4 million order would be delayed. The order was from Seafloor Geophysical Solutions for 2,300 stations of its deepwater OBX seafloor node.

Seafloor advised Geospace a portion of its capital commitment had been withdrawn and that it was currently seeking new investors to fund the purchase order. "While the possibility still exists that delivery of the system to SGS may occur in the company's fiscal third quarter, this event could result in a postponement of the delivery of this system beyond the fiscal third quarter. As a result, the company is not currently able to estimate when the system delivery might occur," Geospace said in the filing. Must Read: Warren Buffett's 10 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates GEOSPACE TECHNOLOGIES CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate GEOSPACE TECHNOLOGIES CORP (GEOS) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 8.3%. Since the same quarter one year prior, revenues rose by 30.3%. Growth in the company's revenue appears to have helped boost the earnings per share. GEOS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, GEOS has a quick ratio of 2.17, which demonstrates the ability of the company to cover short-term liquidity needs. The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Energy Equipment & Services industry and the overall market, GEOSPACE TECHNOLOGIES CORP's return on equity exceeds that of both the industry average and the S&P 500. Net operating cash flow has significantly increased by 2596.87% to $52.73 million when compared to the same quarter last year. In addition, GEOSPACE TECHNOLOGIES CORP has also vastly surpassed the industry average cash flow growth rate of 23.31%. 49.89% is the gross profit margin for GEOSPACE TECHNOLOGIES CORP which we consider to be strong. Regardless of GEOS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GEOS's net profit margin of 23.85% significantly outperformed against the industry. You can view the full analysis from the report here: GEOS Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Stock quotes in this article: GEOS 

Canellos Departs SEC, Leaving Ceresney to Lead Enforcement

The SEC announced Friday that George Canellos, the co-director of the Securities and Exchange Commission's Enforcement Division, is departing the agency, leaving the co-director of the division, Andrew Ceresney, as sole director of the SEC’s high-profile unit.

Canellos, 49, joined the SEC in July 2009 as director of the SEC’s New York office, became deputy director of enforcement in July 2012, was named acting director following the departure in February of director Robert Khuzami and was named co-director with Ceresney, 41, by Chairwoman Mary Jo White in April 2013. 

When now-Chairman White was the U.S. Attorney for the Southern District of New York, both Canellos and Ceresney worked under her. Among Canellos’ many accomplishments at the SEC was his role, while at the New York office, in overseeing the investigation into Bernie Madoff’s Ponzi scheme. At the enforcement division he led insider trading actions against Raj Rajaratnam of Galleon Management and Steven A. Cohen of SAC Capital and helped implement, according to an SEC statement, “new approaches to examinations of investment advisory firms while more closely integrating the teams responsible for examinations of broker-dealers and investment managers.”

When Chairwoman White announced last April the appointment of Canellos and Ceresney (who was also a colleague at the law firm Debevoise & Plimpton) as co-directors of enforcement, she said that “George and Andrew are two of the best lawyers and finest people I know." At that time, multiple media sources suggested that the co-directorship might not last too long. For example, a New York Times Dealbook article quoted "people briefed on the matter" who said that Canellos was "expected to return to private practice well before the end of President Obama’s second term."

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Check out Enforcement Roundup: Investors Win $900,000 in FINRA Arb Over Nontraded REITs on ThinkAdvisor.

Canellos Departs SEC, Leaving Ceresney to Lead Enforcement

The SEC announced Friday that George Canellos, the co-director of the Securities and Exchange Commission's Enforcement Division, is departing the agency, leaving the co-director of the division, Andrew Ceresney, as sole director of the SEC’s high-profile unit.

Canellos, 49, joined the SEC in July 2009 as director of the SEC’s New York office, became deputy director of enforcement in July 2012, was named acting director following the departure in February of director Robert Khuzami and was named co-director with Ceresney, 41, by Chairwoman Mary Jo White in April 2013. 

When now-Chairman White was the U.S. Attorney for the Southern District of New York, both Canellos and Ceresney worked under her. Among Canellos’ many accomplishments at the SEC was his role, while at the New York office, in overseeing the investigation into Bernie Madoff’s Ponzi scheme. At the enforcement division he led insider trading actions against Raj Rajaratnam of Galleon Management and Steven A. Cohen of SAC Capital and helped implement, according to an SEC statement, “new approaches to examinations of investment advisory firms while more closely integrating the teams responsible for examinations of broker-dealers and investment managers.”

When Chairwoman White announced last April the appointment of Canellos and Ceresney (who was also a colleague at the law firm Debevoise & Plimpton) as co-directors of enforcement, she said that “George and Andrew are two of the best lawyers and finest people I know." At that time, multiple media sources suggested that the co-directorship might not last too long. For example, a New York Times Dealbook article quoted "people briefed on the matter" who said that Canellos was "expected to return to private practice well before the end of President Obama’s second term."

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Check out Enforcement Roundup: Investors Win $900,000 in FINRA Arb Over Nontraded REITs on ThinkAdvisor.

What to Do When Your Ex Won't (or Can't) Pay Child Support

Getty Images Andi Kimbrough would have an easier time budgeting if her ex-husband was paying the child support he owes her. Currently, his tab is $11,000, which she doesn't expect to be repaid soon. Her ex is unemployed, and his location is unknown. In fact, there's a warrant out for his arrest. Kimbrough, 43, is gainfully employed at a local television network in Dallas/Fort Worth and is married to a service director for a car dealership. So she is part of a two-income household, which helps offset the financial challenges of not receiving regular child support for her 14-year-old and 10-year-old sons. Still, it isn't easy. Her household is sending out child support money as well. Kimbrough's husband has three children of his own: two sons, ages 18 and 15, and an eight-year-old daughter. His ex-wife is trying to get her amount of child support increased. Right now, Kimbrough says, they're paying somewhere between $500 and $600 a month in child support. "We struggle to pay it already and feel like there is no recourse," Kimbrough says. Those child support issues are one of the main reasons the couple has made a big decision regarding their lifestyle going forward. "We're actually moving out of our house and into an apartment," she says. It would help if Kimbrough's ex-husband paid his child support. It's $500 a month, almost the amount her husband sends to his ex-wife. Recent national numbers on unpaid child support are hard to come by, but $108 billion in back payments was owed to parents with custody of children in 2009, according to the federal Office of Child Support Enforcement. Unfortunately, if your ex-partner is determined not to pay child support or has few assets and can't pay, there isn't much one can do. A deadbeat or broke parent can be thrown in jail for not paying child support, but garnishing prison wages won't get you very far. Still, if you are owed child support, here are some strategies that are worth employing. Keep the other parent involved. If you have primary custody and your ex isn't paying child support, it may be tempting to punish the other parent and prevent him (usually, it's him, but not always) from seeing your child. That's not a good move, says Sheri Atwood, founder of SupportPay.com, an automated child-support payment platform. (It's free, unless you use premium services such as sending money to a third party, in which case it's $19.99 a month.) "A lot of parents feel if you're not going to pay, you're not going to be involved in their life, but it works against you," Atwood says. "By keeping them involved in your children's day-to-day activities and the things going on, that helps them stay invested in your children, and if they can't pay you today, at least they're more likely, when they can afford it, to pay." Shel Harrington, a family law attorney and an adjunct professor teaching family law at the Oklahoma City University School of Law, seconds that. "Child support issues and visitation issues are independent of each other," Harrington says. She adds that it isn't right for a child to not see a parent because that parent isn't paying child support, and "on the flip side, a parent should not stop paying child support because the other parent is denying them visitation," Harrington says. And either parent in this situation could find themselves in legal hot water, Harrington says, even if they feel their reasons are sound for withholding money or visitation rights. Don't budget for your child support. That is, if your ex isn't dependable. "Never build it into your budget," Kimbrough advises. "Keep it completely separate, and that way if it stops, it doesn't change your day. If it's there, you can let it build up for the necessities that you need for your children." Don't run to your lawyer. That is, it shouldn't be your first instinct, Atwood says. Talking things out -- and picking your battles -- should be. Atwood says she knows of one customer who spent more than $12,000 in attorney fees, fighting with an ex about who would pay for a $100 pair of glasses for their child. "He said to me, 'I know this is dumb,'" Atwood says. But, of course, emotion often trumps intellect in post-divorce universe. If your ex can't pay you everything, ask him to pay some. Not that you want to let him off the hook, but something is better than nothing. And if you ex is truly broke, it may be better for everyone if he or she gets the child support reduced (it can always be raised if he or she gets a better job). And it's in your ex's best interest to get things straightened out with the court right away. "All states have anti-retroactive modification laws," says Ron Lieberman, a family law attorney in Haddonfield, N.J. "Meaning that a modification of child support can't be made retroactive beyond the date of the filing of a motion in court ... so the payer has every incentive to seek immediate court action instead of ignoring his or her payment situation." When to get the courts involved. If your ex isn't making any effort to pay, it's usually after six months when a county sheriff will begin enforcing child support, assuming the support is currently being paid through wage execution or the probation department, Lieberman says. If child support is not being paid through those two ways, you can still file a motion in court for enforcement, Lieberman says. The filing fee in New Jersey is $30, he says, adding: "In extreme cases, a parent can ask for the waiver of the filing fee." Then, assuming an ex isn't willing to pay child support, law enforcement has methods to try and reason with the parent, Lieberman says, including suspending his or her professional license. The courts can take away the deadbeat parent's driver's license, grab any tax refunds, garnish wages and, yes, throw the person in jail. That still may not convince the parent, says Bruce Ailion, an associate broker with Re/Max in Atlanta and father of three who has been trying to get child support for more than a decade and can attest to how difficult it is. His ex-wife, who owned a real-estate brokerage company with him when they divorced in 2002, owes around $80,000 in child support, he says. She has wound up in jail numerous times, and what Ailion finds amazing is that he can afford to pay for legal representation to collect his child support income -- and has still come up empty.

Obama Should've Hired This Tiny Tech Firm to Build Healthcare.gov

For her sake, it's a good thing Health and Human Services Director Kathleen Sebelius isn't working in the private sector.

If she did, the former Kansas governor would be out on the street right now. (By the time you read this, she might be.)

Actually, it's worse than it sounds...

Sebelius and her tech team failed to live up to a series of bipartisan federal technology mandates stretching back more than 17 years.

Fact is, it was her responsibility to make sure the ObamaCare website HeathCare.gov was up and running smoothly at its launch on Oct. 1.

Instead, the crash-prone website is a major disaster that has the Obama administration on its heels. HealthCare.gov has become a political hot potato, with many Republicans in Congress calling for Sebelius' firing.

Let me clear up one thing right now. My analysis of the situation at HHS is nonpartisan. And that's the great thing about high tech: It's politically neutral.

Web platforms don't care about your political affiliation.

It's not about politics, it's about execution.

With tech, the question is simple: Does it work or not?

And for investors, our goal is to find high tech that makes us money. That's why I want to tell you more about a small-cap expert that's raking in the cash from government websites.

First, however, let's put Sebelius and her tech team into some important historical context.

There Were Warnings

Her team operates under a 1996 federal law passed under a Democratic administration designed to prevent precisely this kind of mistake from happening in the first place.

So, my analysis of the website's poor performance - and why Sebelius and her tech execs should be fired - is based on my 15 years of studying federal information technology and my understanding of the realities of high tech in the private sector.

That's why I think it helps to take a look at how the late A.W. "Tom" Clausen handled a similar disaster at Bank of America back in the 1980s.

At the time, Clausen had recently left as head of the World Bank and returned to right the ship at troubled Bank of America. I know from personal experience the tough-minded, hard-charging executive would not accept this kind of failure on a major tech platform.

See, in those days, I was the bureau chief of American Banker, a trade journal considered the Bible of the banking industry. I got wind of a major screw-up on Bank of America's massive new computer system, designed to keep track of pension funds, 401(k) plans, and other employee benefits.

Bank of America spent $20 million designing and launching the MasterNet computer system. And, just like Healthcare.gov, the officials in charge of MasterNet put the system online despite signs of problems.

My exposés applied pressure to the bank to fix the problems and hold executives accountable. The bank eventually spent some $60 million to fix the problems.

And Clausen fired the two executive vice presidents in charge of MasterNet.

The example of how Clausen handled this situation speaks volumes about the differences between how failed leaders are treated in Washington these days and in the private sector.

Just last year, Apple Inc. (Nasdaq: AAPL) fired the head of the mapping program when the tech leader met with a barrage of criticism for the launch of its new maps application for the iPhone.

Only a few months ago, the board at mobile game maker Zynga Inc. (Nasdaq: ZNGA) booted the CEO who co-founded the company. Not only that, but his replacement has cleaned house, which included dismissing the company's chief technology officer.

So, it's a pretty safe bet that if a health insurer like Cigna Corp. (NYSE: CI) or Blue Cross Blue Shield messed up this badly, heads would roll.

For Sebelius and even for Obama himself, the problem actually runs much deeper than it appears.

E-Government Is Nothing New

The truth is, for at least the last 17 years, the U.S. government has been involved in a huge, sprawling effort to make federal information technology as good anything you'd find in the private sector.

Presidents Clinton and Bush were huge advocates of using technology to make the federal government more efficient, cost-effective, and citizen-centric.

Under Clinton's leadership, Congress passed a federal IT law known as the Clinger-Cohen Act in 1996. Specifically, the act mandates that federal managers operate their IT systems as though they were efficient and profitably run private-sector businesses.

Three years later, at the end of Clinton's tenure, a body known as the Chief Information Officers (CIO) Council - a Star Chamber of high-level tech experts from each federal agency - mandated that federal agencies help develop something known as an Enterprise Architecture. It was a complex undertaking, but it was basically a digital blueprint for making data flow seamlessly throughout the federal government.

Under Bush, Congress built on this effort with the E-Government Act of 2002. Among other things, the law mandated that the CIO Council meet regularly to keep the government computer networks running smoothly.

A year later, the Bush administration unveiled a program that became known as Firstgov.gov. The idea was to use IT systems to give citizens unprecedented access to federal services and information, and also to link to state, local, and even overseas government networks.

In short, Bush wanted citizens to find the information they needed in as little as three clicks on a federal website. Here is how the University of Albany's tech center described the effort:

"Firstgov.gov offers a powerful search engine that searches every word of every U.S. government document in a quarter of a second or less."

What a contrast between that bipartisan effort and the results today at Healthcare.gov. There, millions of citizens can't even get log on to find the information they need. Instead of taking only a few seconds, using the deeply flawed portal often takes hours - if the site even works at all.

The administration says it's working to correct the problem and that it will take at least a month to do.

Ironically, this embarrassment might have been avoided altogether had HHS used the services of a fast-moving, small-cap leader with deep expertise in this field.

The One Company That Could've Saved the Day

Its ticker symbol says it all: EGOV.

Indeed, NIC Inc. (Nasdaq: EGOV) is an expert at building government websites that operate flawlessly. It counts 3,500 government agencies as e-government clients.

In recent weeks, EGOV has made headlines because it:

Helped the state of Hawaii's Department of Health win its second national award for serving citizens through online services; Facilitated the redesign of a website for the state of Oregon's medical board that includes a mobile offering; Provided the help needed for the state of Alabama's website to run so well it won an international visual arts award among government websites; and Backed a tech system that lets teens in Wisconsin practice for their driver's license exams with an app that works on tablet computers like the iPad.

To be fair, NIC does nearly all of its work for state and local agencies. However, it has racked up a great track record, both in terms of its technology and the stock's performance.

Over the past year the stock is up 73%. But don't worry: It still has plenty of room to run, if for no other reason than that the company has great financials.

With a market cap of $1.6 billion, the stock trades at just under $25 a share. The company has a 15% profit margin and a 39% return on equity. It grew its most recent quarterly earnings by 77% and reports third-quarter financials on Nov. 7.

Investors should pay attention to what happens with NIC for two reasons: E-government is a major tech trend - despite the debacle at HealthCare.gov - and this small-cap leader knows how to make piles of cash off this national tech effort.

Golf Clap for Wet Seal

Wet Seal (Nasdaq: WTSL  ) reported earnings on May 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 4 (Q1), Wet Seal met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped. GAAP earnings per share grew.

Margins expanded across the board.

Revenue details
Wet Seal reported revenue of $140.4 million. The four analysts polled by S&P Capital IQ anticipated a top line of $140.4 million on the same basis. GAAP reported sales were 5.1% lower than the prior-year quarter's $147.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.01. The five earnings estimates compiled by S&P Capital IQ averaged $0.01 per share. Non-GAAP EPS of $0.01 for Q1 were 50% lower than the prior-year quarter's $0.02 per share. GAAP EPS of $0.03 for Q1 were much higher than the prior-year quarter's $0.00 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 30.1%, 60 basis points better than the prior-year quarter. Operating margin was 3.4%, 130 basis points better than the prior-year quarter. Net margin was 2.2%, 240 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $138.7 million. On the bottom line, the average EPS estimate is $0.02.

Next year's average estimate for revenue is $578.3 million. The average EPS estimate is $0.08.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 195 members out of 231 rating the stock outperform, and 36 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Wet Seal a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wet Seal is outperform, with an average price target of $3.54.

Is Wet Seal the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.

Add Wet Seal to My Watchlist.

BMW's Sales Continue to Shine

The 2014 3 Series GT is one of several new models coming from BMW soon. Photo credit: BMW

The economy may not be great, but things are definitely looking up for some folks. The latest sign: Luxury car sales are booming.

BMW (NASDAQOTH: BAMXF  ) said on Monday that last month was its best April ever. The German luxury-car giant said that worldwide sales in April for its three auto brands were up 6.8% over year-ago totals.

For the year, BMW's total auto sales are up 5.7% to an all-time high.

You may think that luxury-car sales gains don't matter to normal folks. But luxury cars are very profitable products, and companies like BMW can represent intriguing investments. Read on.

Relatively small sales lead to huge profits
BMW makes and sells three brands of vehicles: Mini, BMW, and Rolls-Royce. Most of the cars it sells around the world are BMWs, but Mini represents an important chunk of the business. (Rolls-Royce sales are tiny, but the profit per car sold is believed to be very high.)

The BMW brand sold 130,598 vehicles around the world in April, up 7.5%. BMW's compact 3 Series and midsized 5 Series sedans accounted for the bulk of that volume, with nearly 70,000 sales between them.

The 3 Series is BMW's best seller, and BMW executives often say that it's their company's most important product. It's the car most often sold to first-time BMW owners, and the company depends on it to build long-lasting owner loyalty.

Mini sales were much smaller, at 24,581 for the month. The Mini is a niche product, but it's valuable to BMW for more than its contribution to the company's bottom line. Mini helps BMW increase its total small-car sales without diluting the BMW brand, which helps it meet some countries' fuel-economy regulations.

BMW also makes and sells premium-priced motorcycles, of course. Its two-wheeled division is called BMW Motorrad, and it had its most successful month ever in April, with sales up 11.5% over year-ago totals – another luxury line that is seeing good gains recently.

And Rolls-Royce? BMW didn't give an official sales number for the stately British brand, but a little subtraction suggests that 240 Rolls-Royces were sold during the month.

Strong results as BMW invests to keep pace with rivals
Earlier in May, BMW reported a $2.69 billion first-quarter profit that blew away analyst estimates. That's despite total sales that are significantly less than those of mass-market automakers like Ford (NYSE: F  ) , which made $1.6 billion in the first quarter. The company reiterated its previous guidance, saying that 2013's full-year pre-tax profit would roughly match last year's despite worsening market conditions in Europe, BMW's home base.

How will they manage that? Rising demand in the U.S. and China, and a slew of new products. BMW is planning to launch 25 new or overhauled products by the end of next year, including 10 that represent new niches for BMW.

Competition will be fierce, though. German arch-rivals Mercedes-Benz and Volkswagen's (NASDAQOTH: VLKAY  ) Audi brand are both investing heavily in new products and factories as well. And BMW is facing stiff competition in some parts of the world from Toyota's (NYSE: TM  ) luxury Lexus brand, as well as increasing pressure from GM's (NYSE: GM  ) Cadillac, which is in the midst of a major overhaul.

Still, BMW's new products should continue to keep the German luxury giant on track.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

5 Great Tech Funds Without Loads

It's a good time to invest in technology stocks. With the U.S. economy picking up steam and other developed countries holding their ground, tech companies should be able to deliver solid growth in the coming years. As a result, "the returns to investors could be quite, quite high," says Walter Price, a co-manager of Wells Fargo Advantage Specialized Tech Fund.

See Also: A Technology ETF With Balanced Holdings

Moreover, we're still not halfway through a four-month stretch that historically has been a good period for owning tech stocks. In six of the past seven years, the Nasdaq 100 Technology index has outpaced Standard & Poor's 500-stock index from November through February. Dan Wiener recently wrote about this—he calls it the "Tech Winter"—in his newsletter, The Independent Adviser for Vanguard Investors. During this period, Wiener says, "well-chosen tech stocks traditionally post some of their best market-beating numbers." Much of that is driven by a year-end "use-it-or-lose-it" mindset at big technology buyers. And ahead of new-product launches, tech companies typically offer discounts on older products at this time of year, and that spurs more buying.

The operative words, though, are "well-chosen tech stocks." That's where smart, experienced mutual fund managers come into play. Below, we name our five favorite no-load tech funds. (Returns are through December 18.)

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Though they come from the same fund company, Fidelity Select Electronics Portfolio (FSELX) and Fidelity Select IT Services Portfolio (FBSOX) differ dramatically. Select Electronics, which Steve Barwikowski has run since 2009, focuses on the semiconductor industry and the end markets it serves, including computer companies and cell-phone makers. The fund holds many of the industry's major players, including Korea's Samsung Electronics (the world's second-largest semiconductor company) and Intel (the computer-chip juggernaut).

The subsector's boom-and-bust cycles are shorter and less severe than they once were, says Barwikowski. But he still spends a lot of time figuring out where we are in that cycle and then picking stocks for the portfolio accordingly. Barwikowski is at heart a value investor, so if the semiconductor cycle is hitting bottom (an abundant supply of chips and low demand for such products), then he'll likely buy stock in small companies on the cheap. At the peak of the cycle, when chip demand is high, he's more likely to buy shares in large, dividend-paying companies with steady profits. Currently, Barwikowski says, it's "Goldilocks time: It's not too hot and it's not too cold." Demand is good, and inventories are lean but not too lean.

At last word, the fund had about 80% of its assets in semiconductor makers, distributors and chip-equipment makers. About 10% was in electronic equipment makers, such as Audience Inc., which makes products that improve voice quality in mobile devices. The rest of the assets are split among Internet firms, including Amazon.com and Google, as well as software and computer hardware businesses. The fund holds 68 stocks.

This fund has been a touch more volatile than the typical tech fund over the past five years. But since Barwikowski stepped in as manager, it returned 25.4% annualized, outpacing the typical tech fund by an average of 4.6 percentage points per year.

Select IT Services holds what manager Kyle Weaver calls "stodgy and unsexy" companies. That's because, he says, he focuses on "businesses that help other businesses use technology to solve their problems." It's a wide net, as it turns out. But these firms – Visa and MasterCard are among the fund's top holdings – can prosper in almost any kind of economy and can survive almost any technological advances that may be affecting their industries. Apple Pay, Square and PayPal may be revolutionizing how people pay for goods and services, but Visa and MasterCard, says Weaver, are "still the rails on which all of those transactions will take place." Moreover, he says, "it's nice to invest in a subsector that is a little bit immune to innovation."

Weaver ran an IT services fund for another firm, RiverSource Investments, before joining Fidelity in 2008. From the time he stepped in as manager of Select IT Services in February 2009 (a month before the start of the great bull market), the fund earned a 25.2% annualized return, an average of 4.4 percentage points per year better than the typical tech fund.

Red Oak Technology Select (ROGSX) is the smallest fund among our favorites, with just $148 million in assets. Its parent firm, Oak Associates Funds, is based in Akron, far from major tech or finance centers. But Red Oak is still a winner. From the time Mark Oelschlager took over as manager in April 2006, Red Oak returned 10.7% annualized, an average of 2.8 percentage points per year ahead of the typical tech fund.

Some tech investors try to identify the next hot story or the fastest-growing companies. Not Oelschlager. "High-growth companies and companies with exciting stories do well for a couple of years, and then they flame out," he says. So he focuses on tech companies with sustainable profits and good competitive positions within their industry that trade at bargain prices. "We're trying to identify companies that will be around for a long time and make a lot of money for a long time."

To build his portfolio, Oelschlager hews closely to three core principles: First, he takes a long-term view. Second, he keeps the portfolio to 25 to 40 stocks at any given time (the fund held 38 stocks at last report). Finally, he stays fully invested. If he finds a new company he wants to invest in, he has to sell a current holding to make room for it. That said, when he buys, he tends to hold. The fund's turnover rate is 15%, which implies that holdings stay in the fund for nearly seven years, on average. By contrast, the typical tech fund turns over its portfolio at least once a year. The fund's top holdings at last report were Cisco Systems, Northrop Grumman and Oracle.

You won't see many of the grande dames of tech among the 69 stocks in T. Rowe Price Global Technology (PRGTX). "I don't own IBM, Hewlett-Packard, Samsung Electronics and SAP," says manager Joshua Spencer. That's because he approaches this sector with the view that technology is about change and innovation. "It's a winner-take-all kind of market," he says. "It pays to invest with the winners, and we try to bet on the right side of change."

Some of the winners he has bet on are well-known, and others are not. Amazon and Google, for instance, are among his top holdings. So are Tencent Holdings, a Chinese company that owns Internet and mobile businesses, electric carmaker Tesla, and Zillow, the real-estate data firm. What ties them together: They each play a unique role in revolutionizing their industry. "They each do something no one else can do as well as they do, and they're gaining share, and they have a strong competitive position," says Spencer.

Spencer says he and his team of 20 analysts do "deep field research" on companies in the U.S., Asia and Europe to find good ideas. The process has won results: Over the past 10 years, the fund tops the charts of all tech funds, with an annualized return of 13.4%. That's an average of 4.6 percentage points better per year than the typical tech fund. And considering how volatile tech stocks can be, the fund has been remarkably consistent. Except for one instance, in each of the past 11 calendar years (including so far in 2014), the fund ranked among the top 37% of its peers or higher. (The exception was in 2007, when the fund's 13.4% return lagged the typical tech fund by 2.7 percentage points.) Though Spencer's tenure as manager goes back only 2.5 years, he has been a key analyst with the fund since 2005. Since he became manager in June 2012, his fund returned 28.0% annualized, beating the typical tech fund by an average of 5.7 percentage points per year.

Walter Price and Huahua Chen, the managers of Wells Fargo Advantage Specialized Technology (WFTZX), break the portfolio into three groups. The first group consists of companies that have prospective near-term annual earnings or revenue growth of at least 50% and that could be "the next breakthrough company," says Price. Facebook, Tesla and Palo Alto Networks, a network-security firm, fit in this category. The second consists of growing companies trading at reasonable prices. Among them are Google and SunPower, a maker of solar panels. The third category includes undervalued companies with a catalyst to spur growth, such as Microsoft and Alcatel, a maker of telecommunications equipment.

The managers also have a rigorous process for selling. They assign one-year and two-year price targets for each stock in the portfolio (the fund at last word held 65 stocks). If a stock hits its shorter-term target, the managers start to trim their shares. Once it hits its longer-term target, they unload the position outright. In 2013, they sold their holdings in high-flying stocks, such as Pandora and Yelp, both of which registered triple-digit gains that year. Those moves, says Price, helped lift the fund to a 42.9% return in 2013, a whopping 7 percentage points better than the typical tech fund. The fund's long-term record is strong, too: Over the past 10 years, it earned 10.4% annualized, an average of 1.7 percentage points better than the typical tech fund.

YouTube to launch premium music streaming service

With Music Key, YouTube is allowing its users to listen to their favorite artists without ads, but at a price. NEW YORK (CNNMoney) Millions of people already listen to music on YouTube, but soon they'll be able to hear their favorite tunes without any annoying ads.

The company announced on Wednesday that starting next week it will be joining the premium streaming music landscape with its YouTube Music Key.

The long-awaited monthly subscription service will be available first by invite only. Those with an invite will be able to unlock the service for a six month free trial. The beta version will then charge a promotional price of $7.99 a month. A future standard rate will be $9.99 a month.

Users will be able to play music without ads and offline via YouTube's current iPhone and Android phone apps.

"You've watched, shared, remixed, invented, parodied and whatevered your favorite songs, making YouTube the ultimate place for artists and fans to connect," the company wrote in a blog post. "We're making it easier to find new music on YouTube and rock out to old favorites."

  Spotify to Taylor Swift: 'Stay, stay, stay'

The new service will also come with a subscription to Google Play Music. YouTube will now have full high quality audio albums along with the site's standard music videos.

YouTube enters the streaming market at a time where many are at odds about if streaming music is good or bad for the music industry.

That debate was brought to the forefront when Taylor Swift pulled her music from the popular music streaming service, Spotify, last week.

Swift's ! move garnered a response from Spotify CEO Daniel Ek on Tuesday.

5 Unusual-Volume Stocks Poised for Breakouts

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

Must Read: Warren Buffett's Top 10 Dividend Stocks



Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."



Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.



With that in mind, let's take a look at several stocks rising on unusual volume recently.

Must Read: 5 Stocks Insiders Love Right Now

ICF International

ICF International (ICFI) provides management, technology and policy professional services to government and commercial customers in the U.S. and internationally. This stock closed up 2.6% at $34.09 in Wednesday's trading session.

Wednesday's Volume: 196,000

Three-Month Average Volume: 73,142

Volume % Change: 171%

From a technical perspective, ICFI spiked higher here back above its 50-day moving average of $33.12 with above-average volume. This move also pushed shares of ICFI into breakout territory, since the stock took out some near-term overhead resistance at $33.76. Market players should now look for a continuation move to the upside in the short-term if ICFI manages to take out Wednesday's intraday high of $34.48 with high volume.

Traders should now look for long-biased trades in ICFI as long as it's trending above Wednesday's intraday low of $32.50 and then once it sustains a move or close above $34.48 with volume that's near or above 73,142 shares. If that move begins soon, then ICFI will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $35.88 to $36.50, or even $38 to $39.

Must Read: 10 Stocks Carl Icahn Loves in 2014

Pacific Ethanol

Pacific Ethanol (PEIX) produces and markets low-carbon renewable fuels in the U.S. This stock closed up 6.7% to $12.33 in Wednesday's trading session.

Wednesday's Volume: 2.51 million

Three-Month Average Volume: 1.60 million

Volume % Change: 65%

From a technical perspective, PEIX showed relative strength here compared with the overall market weakness as it ripped sharply higher right above some near-term support at $11 with above-average volume. This stock has experienced dramatic downside volatility over the last month and change, with shares collapsing from its high of $23.97 to its recent low of $9.10. During that downtrend, shares of PEIX have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of PEIX have now started to rebound off that $9.10 low and it's now quickly moving within range of triggering a near-term breakout trade. That trade will hit if PEIX can manage to take out Wednesday's intraday high of $12.98 to some more resistance at $13.50 with high volume.

Traders should now look for long-biased trades in PEIX as long as it's trending above Wednesday's intraday low of $11.42 or above more support at $11 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.60 million shares. If that breakout develops soon, then PEIX will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $14.29 to $15.83, or even $16.

Must Read: 10 Stocks Billionaire John Paulson Loves in 2014

Cubist Pharmaceuticals

Cubist Pharmaceuticals (CBST), a biopharmaceutical company, is engaged in the research, development and commercialization of pharmaceutical products for medical needs in the acute care environment in the U.S. This stock closed up 4.1% at $69.15 in Wednesday's trading session.

Wednesday's Volume: 1.27 million

Three-Month Average Volume: 733,591

Volume % Change: 96%

From a technical perspective, CBST ripped higher here right off its 50-day moving average of $66.11 and back above its 200-day moving average of $69.01 with above-average volume. This counter trend to the upside on Wednesday also briefly pushed shares of CBST into breakout territory, since the stock flirted with some near-term overhead resistance levels at $68.72 to $69.51. Shares of CBST tagged an intraday high of $69.84, before it closed just off the level at $69.15. Market players should now look for a continuation move higher in the near-term in CBST if it manages to clear Wednesday's intraday high of $69.84 with high volume.

Traders should now look for long-biased trades in CBST as long as it's trending above its 50-day at $66.11 and then once it sustains a move or close above $69.84 with volume that's near or above 733,591 shares. If that move gets started soon, then CBST will set up to re-test or possibly take out its next major overhead resistance levels at $71.70 to $74.18.

Must Read: 7 Stocks Warren Buffett Is Selling in 2014

Abaxis

Abaxis (ABAX) develops, manufactures, markets and sells portable blood analysis systems for use in human or veterinary patient care settings to provide blood constituent measurements for clinicians worldwide. This stock closed up 3.5% at $51.11 in Wednesday's trading session.

Wednesday's Volume: 451,000

Three-Month Average Volume: 201,897

Volume % Change: 145%

From a technical perspective, ABAX ripped higher here right off its 50-day moving average and counter-trended vs. the overall market weakness with above-average volume. This move briefly pushed shares of ABAX into breakout territory, since the stock flirted with some near-term overhead resistance at $52.30. Shares of ABAX tagged an intraday high of $52.50, before closing just below that level at $51.11. This jump to the upside on Wednesday is now starting to push shares of ABAX within range of triggering another big breakout trade. That trade will hit if ABAX manages to take out Wednesday's intraday high of $52.50 to its 52-week high of $53.98 with high volume.

Traders should now look for long-biased trades in ABAX as long as it's trending above its 50-day at $48.95 or above more near-term support at $46.87 and then once it sustains a move or close above those breakout levels with volume that hits near or above 201,897 shares. If that breakout gets set off soon, then ABAX will set up to enter new 52-week-high territory above $53.98, which is bullish technical price action. Some possible upside targets off that breakout are $60 to $65.


Must Read: 10 Stocks George Soros Is Buying

Cedar Fair

Cedar Fair (FUN) owns and operates amusement and water parks in the U.S. and Canada. This stock closed up 3.7% to $46.95 in Wednesday's trading session.

Wednesday's Volume: 474,000

Three-Month Average Volume: 164,788

Volume % Change: 195%

From a technical perspective, FUN gapped up notably higher here right into its 50-day moving average of $47.27 with above-average volume. This spike to the upside on Wednesday is now starting to push shares of FUN within range of triggering a near-term breakout trade. That trade will hit if FUN manages to take out its 50-day moving average of $47.27 to some more key near-term overhead resistance levels at $48 to $48.32 with high volume.

Traders should now look for long-biased trades in FUN as long as it's trending above Wednesday's intraday low of $46.06 and then once it sustains a move or close above those breakout levels with volume that hits near or above 164,788 shares. If that breakout triggers soon, then FUN will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $49.54 to $51, or even $52.

Must Read: 12 Stocks Warren Buffett Loves in 2014

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

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>>Buy These 5 Financial Sector Breakout Stocks in October

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

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

Bulls Leverage Hopeful News to Launch a Tepid Breakout Attempt

Stocks were able to leverage some optimistic news and dovish words from the Fed to take another stab at an upside breakout attempt last week. Although readers have sometimes accused me of being a permabull, I am really a realist, and the reality is that the slogans like "The trend is your friend" and "Don't fight the Fed" are truisms. And they have worked. Nevertheless, I am still not convinced that we have seen the ultimate lows for this pullback, especially given the weak technical condition of small caps.

In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable trading ideas, including a sector rotation strategy using ETFs and an enhanced version using top-ranked stocks from the top-ranked sectors.

[Related -The Sixty Percent Alibaba Play No One Is Talking About]

Market overview:

Bulls got a solid show of support from friends in high places last week. Of course, the biggest drivers of the stock market's strong performance has been 1) signs of an improving economy, 2) global liquidity provided by dovish central bankers, and 3) global turmoil pushing cautious investors with all that liquidity in their hands into the relative safety and quality of U.S. securities of all types. The FOMC statement on Wednesday indicated no change in the dovish policies and no threat of an imminent move to raise short-term interest rates. ECB quant easing has led to a fall in the British pound and the euro. This has led to a notable strengthening in the U.S. dollar, which has helped keep inflation low, thus giving the Fed room to remain accommodative, which in turn is supportive of elevated valuation multiples in equities.

[Related -The Finer Points Of Hedging… Or Not]

The 10-year Treasury closed Friday at 2.57%, which is down slightly from the prior week. I still think there is greater downside potential in the 10-year yield, especially given global liquidity and the resulting demand for the safety of U.S. Treasuries. Inflation is hard to find, and many economies around the world are trying to stave off recession and deflation (including Europe and Japan). Low interest rates could be with us for a while.

However, there are still signs of more weakness ahead in stocks, before the eventual launch into the widely anticipated year-end rally to new highs. The week following a triple (or quadruple) witching options expiration day (like last Friday) is usually a down week, according to Stock Trader's Almanac. Also, the technical picture is not giving me confidence, as described below, and short interest has increased again.

The CBOE Market Volatility Index (VIX), a.k.a. fear gauge, closed Friday at 12.06, which of course is down from the prior Friday given the market breakout. It is well below the important 15 level and also back down below its 50-day simple moving average. However, the 50- and 200-day SMAs appear to be on a collision course, with the 50-day threatening to cross up through the 200-day, which would be bearish for stocks.

Year-to-date, the S&P 500 large cap index is up +8.8% total return, while the Russell 2000 small cap index is up less than +1.0%, and non-U.S. stocks are up only about +3.5%. Many market observers believe the lag in U.S. small caps is appropriate given the outperformance of small caps last year that boosted valuations out of balance.

After 5.5 years of a liquidity-fueled bull market, many observers are saying the market is getting long in the tooth and doomed to end soon. However, bull markets don't die of old age. In fact, advanced age alone is rarely a sure-fire predictor of flagging performance in any activity, except perhaps professional sports. Take music, for instance. I just attended the Diana Ross concert earlier tonight at the Santa Barbara Bowl, and she is better than ever at age 70. Earlier this year, I attended a Paul McCartney concert in Kansas City, and at 73 he is still phenomenal. Likewise, Sabrient founder, former NASA scientist, and stock-picker extraordinaire David Brown is also a septuagenarian, and he is as good as ever.

Our annual Baker's Dozen portfolio of 13 top picks for the year is up about +18% since its January 13 launch and continues to pull away from the field on this third-party performance tracking site. Our annual portfolio also strongly outperformed the other diversified portfolios over the prior two years since this site began tracking us. Baker's Dozen represents a sector-diversified group of stocks based on our Growth At a Reasonable Price (GARP) quant model and confirmed by a rigorous forensic accounting review by our subsidiary Gradient Analytics to help us avoid the landmines.

Among industries, airlines and biotech have been hot. Southwest Airlines (LUV) is the best performer in the S&P 500 this year, and it is one of the top performers in our Baker's Dozen portfolio, as is Actavis plc (ACT), a biopharma. Last year, our top performers in the Baker's Dozen included Jazz Pharmaceuticals (JAZZ) and Alaska Air Group (ALK), and both are still highly ranked in our system. Another strong group are the energy service companies that support hydraulic fracturing, and Hi-Crush Partners LP (HCLP) is one of our top performing picks this year, as well.

SPY chart review:

The SPDR S&P 500 Trust (SPY) closed last Friday at 200.61. After failing to confirm a breakout above resistance at 200 the prior week, it started last week as if it would pull back to test the 50-day simple moving average around 197.5, but instead rallied to regain its 20-day SMA and confirm a breakout (albeit tepid) above 200. But after Friday's weakness, it is once again sitting right on support from the 20-day, and the breakout seems at risk of failure. Oscillators RSI, MACD, and Slow Stochastic were each pointing down bearishly the prior Friday, as I discussed in last week's article, but after a brief reversal last week, they look to be pointing down bearishly once again.

Although both the Dow Jones Industrials and Transports rose to new closing highs last Thursday, keeping Dow Theory buy signal intact, the challenge for bullish investors still remains recruiting enough new bullish conviction to break out in earnest. However, the Russell 2000 small cap index is not cooperating. It is at a critical juncture, with its 50-, 100-, and 200-day SMAs having all converged at the same spot, and its price closed just below all three on Friday. The bulls will need to get small caps onboard the happy train soon. Although the blue chips are capable of leading the market higher without help from small caps, the higher-odds outcome would be perpetual consolidation and slogging through the mud rather than a robust year-end rally.

Latest sector rankings:

Relative sector rankings are based on our proprietary SectorCast model, which builds a composite profile of each equity ETF based on bottom-up aggregate scoring of the constituent stocks. The Outlook Score employs a forward-looking, fundamentals-based multifactor algorithm considering forward valuation, historical and projected earnings growth, the dynamics of Wall Street analysts' consensus earnings estimates and recent revisions (up or down), quality and sustainability of reported earnings (forensic accounting), and various return ratios. It helps us predict relative performance over the next 1-3 months.

In addition, SectorCast computes a Bull Score and Bear Score for each ETF based on recent price behavior of the constituent stocks on particularly strong and weak market days. High Bull score indicates that stocks within the ETF recently have tended toward relative outperformance when the market is strong, while a high Bear score indicates that stocks within the ETF have tended to hold up relatively well (i.e., safe havens) when the market is weak.

Outlook score is forward-looking while Bull and Bear are backward-looking. As a group, these three scores can be helpful for positioning a portfolio for a given set of anticipated market conditions. Of course, each ETF holds a unique portfolio of stocks and position weights, so the sectors represented will score differently depending upon which set of ETFs is used. We use the iShares that represent the ten major U.S. business sectors: Financial (IYF), Technology (IYW), Industrial (IYJ), Healthcare (IYH), Consumer Goods (IYK), Consumer Services (IYC), Energy (IYE), Basic Materials (IYM), Telecommunications (IYZ), and Utilities (IDU). Whereas the Select Sector SPDRs only contain stocks from the S&P 500, I prefer the iShares for their larger universe and broader diversity. Fidelity also offers a group of sector ETFs with an even larger number of constituents in each.

 

Here are some of my observations on this week's scores:

1.  There is very little change in the rankings from last week. Technology still holds the top spot with the same Outlook score of 91. The sector displays relatively solid scores across most factors in the model, including the best Wall Street analyst sentiment (net upward revisions to earnings estimates), the strongest return ratios, a good forward long-term growth rate. However, the forward P/E is below average (Financial and Energy sport the lowest). Healthcare returns to the second spot this week with a score of 68 as the sector displays further improvement in both sell-side analyst sentiment (upward revisions) and insider sentiment (open market buying), as well as solid return ratios and a good long-term forward growth rate. Financial has solidified its hold on the third spot, as analyst sentiment continues to show gradual improvement. Consumer Goods/Staples and Utilities round out the top five.

2.  Telecom stays in the cellar this week with an Outlook score of 3, as the sector has low scores on most factors in the model. Consumer Services/Discretionary stays in the bottom two with a score of 20, despite the highest forward long-term growth rate.

3.  Looking at the Bull scores, Healthcare displays the strongest score of 63, while Telecom is the only sector scoring below 50, with a score of 47. The top-bottom spread is now 16 points, reflecting slightly higher sector correlations on particularly strong market days. It is generally desirable in a healthy market to see low correlations and a top-bottom spread of at least 20 points, which indicates that investors have clear preferences in the stocks they want to hold, rather than the all-boats-lifted-in-a-rising-tide mentality that dominated 2013.

4.  Looking at the Bear scores, Utilities is still scoring surprisingly low (especially compared with the 60-70 range it had been showing recently), as the threat of rising interest rates had investors fleeing. Telecom displays the highest Bear score this week once again, although at 53 it is fairly low, indicating only mild investor interest when the market is weak. Still, on a relative basis, Telecom stocks have been the preferred safe havens on weak market days. Energy continues to display the lowest score, this week falling even further to 35. The top-bottom spread is 18 points, reflecting lower sector correlations on particularly weak market days. Again, it is generally desirable in a healthy market to see low correlations and a top-bottom spread of at least 20 points.

5.  Technology displays the best all-weather combination of Outlook/Bull/Bear scores, followed by Healthcare, while Telecom is clearly the worst. Looking at just the Bull/Bear combination, Healthcare is the clear leader, followed by Consumer Services/Discretionary, indicating superior relative performance (on average) in extreme market conditions (whether bullish or bearish). Energy scores the worst, indicating general investor avoidance during extreme conditions.

6.  Overall, this week's fundamentals-based Outlook rankings continue to look neutral, as defensive and economically-sensitive sectors are mixed about in the rankings. Defensive sectors Utilities and Consumer Goods/Staples are both in the top five. However, I am seeing a glimmer of bullish hope in that the top two Outlook scores also sport the highest Bull scores, and Industrial and Financial seem to be subtly gaining some strength in the rankings. We'll see how this plays out over the next couple of months.

These Outlook scores represent the view that the Technology and Healthcare sectors remain relatively undervalued, while Telecom and Consumer Services/Discretionary may be relatively overvalued based on our 1-3 month forward look.

Stock and ETF Ideas:

Our Sector Rotation model, which appropriately weights Outlook, Bull, and Bear scores in accordance with the overall market's prevailing trend (bullish, neutral, or bearish), suggests holding Healthcare, Technology, and Financial (in that order) in the prevailing bullish climate. (Note: In this model, we consider the bias to be bullish from a rules-based trend-following standpoint because SPY is above both its 50-day simple moving average and its 200-day SMA.)

Other highly-ranked ETFs from the Healthcare, Technology, and Financial sectors include PowerShares Dynamic Pharmaceuticals Portfolio (PJP), First Trust Technology AlphaDEX Fund (FXL), and Market Vectors Mortgage REIT Income ETF (MORT).

For an enhanced sector portfolio that enlists top-ranked stocks (instead of ETFs) from within Healthcare, Technology, and Financial, some long ideas include Lannett Company (LCI), DepoMed (DEPO), Skyworks Solutions (SWKS), Broadcom (BRCM), Capstead Mortgage (CMO), and FirstMerit Corp (FMER). All are highly ranked in the Sabrient Ratings Algorithm and also score within the top two quintiles (lowest accounting-related risk) of our Earnings Quality Rank (a.k.a., EQR), a pure accounting-based risk assessment signal based on the forensic accounting expertise of our subsidiary Gradient Analytics. We have found EQR quite valuable for helping to avoid performance-offsetting meltdowns in our model portfolios. However, if you think the market has come too far and you prefer to maintain a neutral bias, the Sector Rotation model suggests holding the same three: Technology, Healthcare, and Financial (in that order). Surprisingly, if you have a bearish outlook on the market, the model suggests holding Healthcare, Technology, and Consumer Goods/Staples (in that order).

 

Disclosure: Author has no positions in stocks or ETFs mentioned.

5 Rocket Stocks to Buy for Gains This Week

BALTIMORE (Stockpickr) -- The big bounce in the S&P 500 followed through last week, ending the big index 1.2% higher on Friday than it started Monday morning. And this week, there's a lot more upside potential baked into stocks.

According to statistical data from EidoSearch, the 70% of market instances with price action similar to that in the S&P right now ended higher, putting the big index's upside potential almost another point higher for the end of the week.

Read More: Warren Buffett's Top 10 Dividend Stocks

That's good news for stock market bulls in August.

But to make the most of the continued rally in stocks, it makes sense to focus on one subset that's predisposed to outperform the market averages. I'm talking about the "Rocket Stocks." Today, we're looking at five fresh Rocket names for a new week.

For the uninitiated, "Rocket Stocks" are our list of companies with short-term gain catalysts and longer-term growth potential. To find them, I run a weekly quantitative screen that seeks out stocks with a combination of analyst upgrades and positive earnings surprises to identify rising analyst expectations, a bullish signal for stocks in any market. After all, where analysts' expectations are increasing, institutional cash often follows. In the last 262 weeks, our weekly list of five plays has outperformed the S&P 500's record run by 79.66%.

Without further ado, here's a look at this week's Rocket Stocks.

Read More: 10 Stocks George Soros Is Buying

Goldman Sachs

Up first is legacy investment bank Goldman Sachs (GS), a name that doesn't need much in the way of introduction. Goldman has an ironclad reputation as a well-connected investment bank -- for better or worse. And in 2014, with M&A and IPO deal volumes ramping up in the second half of the year, Goldman looks well-positioned to benefit from the rising tide in its core business.

Investment banking isn't Goldman's only business -- the firm also has thriving wealth management and institutional client services units, offering an integrated model that's stuffed with cross-selling opportunities. One major change in recent years was the decision to reorganize as a bank holding company during the Great Recession, a move that the firm needed to make to stay afloat. That reorganization comes at the cost of returns; with increased regulatory scrutiny, investors shouldn't expect the same levels of profitability that the firm recognized in years' past.

Historically, Goldman's management teams have been good stewards of shareholder value. And even though the firm's 1.3% dividend yield isn't earth-shattering, it's on the high side for a large-cap financial today. Look for record-high underwriting revenues to help propel upside in the third quarter.

Goldman Sachs shows up on a list of Warren Buffett's Top 25 Stocks for 2014.

Read More: 10 Stocks Carl Icahn Loves in 2014

Simon Property Group

2014 has been a strong year for shareholders in Simon Property Group (SPG). Since the calendar flipped to January, shares of this $52 billion real estate investment trust have rallied more than 11%. A lot of that performance came from the flight to yield investors experienced earlier in the year. Now SPG looks like it's in store for more upside ahead.

Simon Property Group is the largest REIT in the U.S. The firm's properties are primarily retail, with U.S. regional malls and outlet centers making up approximately 90% of net lease income. Simon also owns a 29% stake in Klepierre, which gives the firm exposure to European retail properties as well. Because of its size, SPG has access to a large amount of cheap capital that it can use tackle deals that smaller rivals can't handle alone.

Because of the typical deal characteristics in the retail real estate business, SPG also gets added exposure to retail sales (mall lease agreements typically include a cut of store revenue). That's an attractive sweetener in an environment where consumer spending continues to be on the upswing. The decision to spin off its smaller assets into Washington Prime Group (WPG) is a positive for SPG shareholders as well -- it puts smaller, less productive assets in a separate basket, leaving new SPG with higher revenues per square foot than its predecessor.

With rising analyst sentiment in SPG this week, we're betting on shares.

Read More: 7 Stocks Warren Buffett Is Selling in 2014

Delta Air Lines

There's no two ways about it: Shares of Delta Air Lines (DAL) have been going full throttle in 2014. Since the first trading session of the year, this legacy air carrier has seen its shares appreciate by more than 40%. And despite some corrective action in the last couple of months, this Rocket Stock is looking buyable again in August.

Delta is one of the largest airlines in the world, with more than 720 aircraft serving some mainline 247 destinations all over the world. Like other legacy carriers, Delta has some big benefits from its mainline/regional airline partnerships. It's able to peel the least attractive routes off of its map and let smaller regionals operate them under the Delta banner. Delta is squarely the best-positioned of the legacy carriers, and while discount carriers still pose considerable risks to Delta's model, the fact remains that Delta is able to service more highly competitive routes than domestic rivals, and that should keep high-revenue frequent fliers in the firm's seats.

The cyclical nature of the airline business has been a problem for investors in the past, but with cyclical lows already set, Delta looks ready to take advantage of a bullish industry trend here. Fat margins and upside barriers to oil prices in the near-term should help Delta throw off some big profits in the second half of the year.

Read More: 5 Stocks Triggering Big Breakout Trades

Estee Lauder

Fragrance and cosmetics maker Estee Lauder (EL) is another name that's benefitting from looser consumer purse strings these days. Despite a slow start to this year, EL has rallied more than 12% in the trailing six months, making up for lost time in the process. Besides the firm's namesake label, Estee Lauder's brands include popular names like Clinique in addition to mall staples M-A-C and Origins.

Estee Lauder's product lineup skews high-end, a fact that has historically generates net profit margins around 10%. Because consumers tend to be sticky and less price sensitive about cosmetics, EL's huge 25% share of the world's premium cosmetics market comes with some big scale advantages. So does EL's willingness to look overseas for growth – today, more than 60% of sales are generated overseas, and more than 30% of that revenue is generated in emerging markets. As burgeoning middle class populations look to trade up to premium cosmetics brands, Estee Lauder is already entrenched in those markets.

Financially speaking, EL is in solid shape. The firm's $1.3 billion debt load is more than offset by $1.5 billion in cash. That balance sheet position leaves more than enough dry powder for growth in the years ahead. Buying pressure from bullish earnings on Friday could spill over into this week.

Read More: Sell These 5 Toxic Stocks Before It's Too Late

Ball

Even if you've never heard the name before, there's a very good chance that you've come face to face (literally) with some of Ball's (BLL) products. That's because the Broomfield, Colorado-based company is the world's largest metal can manufacturer, cranking out approximately 70 billion beverage cans annual. Ball also manufactures metal food and household product packaging, and aerospace products.

Beverage cans are Ball's bread and butter. The division contributes three-quarters of the firm's annual revenues, and punches out cans for household names such as Coca-Cola Enterprises (CCE), PepsiCo (PEP), MillerCoors and Anheuser-Busch InBev (BUD). All told, Ball controls nearly half of the beverage can industry, a scale factor that gives the firm the ability to spread manufacturing around the world and keep production costs low for its individual customers. And even though Ball's use of aluminum would normally leave a firm beholden to commodity prices, the company's long-term contracts and use of hedging essentially negates price swings in its inputs.

Two key areas where Ball is generating growing revenues are China, where the firm has become the largest player in the beverage can market, and aerospace, where BLL earns approximately 10% of its total revenues producing hardware for the U.S. government. The firm's aggressive approach to revenue diversification should help drive growth in the years ahead.

-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

>>Must-See Charts: 5 Big Stocks to Trade for Gains

>>Triple Your Gains With These 5 Cash-Rich Companies

>>Warren Buffett's Top 10 Dividend Stocks

Follow Stockpickr on Twitter and become a fan on Facebook.

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

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

How Long Can Interest Rates Defy The Odds?

America loves an underdog, a scrappy competitor who manages to beat the odds. By staying so low for so long, interest rates have not only beaten the odds in recent years, they've laughed right in their face. The question is, how long can interest rates keep doing it?

Of course, whether you are rooting for this particular underdog depends which side of the borrower/saver divide you are on. Mortgage borrowers have seen the cost of owning a home cut dramatically by record low mortgage rates. On the other hand, depositors in CDs, savings and money market accounts have seen interest on their savings all but disappear as bank rates approached zero.

Still no rise in sight

The performance of interest rates over the past five years was already remarkable, but perhaps never more so than this year. By several standards, interest rates should be rising. However, they have remained stubbornly low, and in some cases have continued to fall.

Here are some of the ways in which low interest rates have beaten the odds:

3 Stocks Under $10 Making Big Moves

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

>>3 Huge Stocks on Traders' Radars

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

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

>>5 Stocks With Big Insider Buying

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

SouFun

SouFun (SFUN) operates a real estate Internet portal, and a home furnishing and an improvement Web site in the People's Republic of China. This stock closed up 5.9% to $9.40 in Wednesday's trading session.

Wednesday's Range: $8.76-$9.50

52-Week Range: $4.60-$19.94

Wednesday's Volume: 8.36 million

Three-Month Average Volume: 7.98 million

From a technical perspective, SFUN spiked sharply higher here right above some near-term support at $8.52 with above-average volume. This stock has been downtrending badly for the last three months and change, with shares moving lower from its high of $19.94 to its recent low of $8.52. During that downtrend, shares of SFUN have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of SFUN are now starting to spike higher off that $8.52 low with strong upside volume. This move could be signaling that SFUN is ready to a short-term reversal trade to the upside.

Traders should now look for long-biased trades in SFUN as long as it's trending above its recent low of $8.52 and then once it sustains a move or close above Wednesday's intraday high of $9.50 to more resistance at $10 with volume that hits near or above 7.98 million shares. If that breakout hits soon, then SFUN will set up to re-test or possibly take out its next major overhead resistance levels at $11 to its 50-day moving average of $11.87, or even $13.

EveryWare Global

EveryWare Global (EVRY) provides tabletop and food preparation products for the consumer, foodservice and specialty markets. This stock closed up 3% to $1.35 in Wednesday's trading session.

Wednesday's Range: $1.33-$1.39

52-Week Range: $0.67-$13.74

Wednesday's Volume: 144,000

Three-Month Average Volume: 264,980

From a technical perspective, EVRY bounced notably higher here right above some near-term support at $1.25 with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $1.26 to $1.25. Following that bottom, shares of EVRY have now started to spike higher and move within range of triggering a major breakout trade. That trade will hit if EVRY manages to take out some key near-term overhead resistance levels at $1.45 to $1.60 with high volume.

Traders should now look for long-biased trades in EVRY as long as it's trending above those double bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 264,980 shares. If that breakout gets underway soon, then EVRY will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $2.08 to $2.44.

Imris

Imris (IMRS) designs, manufactures and sells image-guided therapy solutions that enable surgeons to obtain information and make decisions during the course of procedures. This stock closed up 3.8% to $1.07 in Wednesday's trading session.

Wednesday's Range: $1.02-$1.10

52-Week Range: $0.79-$3.40

Wednesday's Volume: 287,000

Three-Month Average Volume: 268,972

From a technical perspective, IMRS bounced sharply higher here right off some near-term support at $1 with above-average volume. This stock has been uptrending a bit for the last few weeks, with shares moving higher from its low of 79 cents per share to its intraday high of $1.10. During that uptrend, shares of IMRS have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of IMRS within range of triggering a big breakout trade. That trade will hit if IMRS manages to take out Wednesday's intraday high of $1.10 to its 50-day moving average of $1.17 and then once it clears more resistance at $1.20 with high volume.

Traders should now look for long-biased trades in IMRS as long as it's trending above some key near-term support at $1 and then once it sustains a move or close above those breakout levels with volume that hits near or above 268,972 shares. If that breakout materializes soon, then IMRS will set up to re-test or possibly take out its next major overhead resistance levels at $1.33 to $1.52, or even its 200-day moving average of $1.60.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Stocks Set to Soar on Bullish Earnings

>>5 Retail Stocks to Trade for Gains in June

>>3 Big-Volume Stocks to Trade for Breakouts

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

CNBC.com and Forbes.com.

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

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