Why Amazon U.S. Workers Could Strike

German workers are not happy with Amazon.com Inc. (NASDAQ: AMZN) — again. In May 500 warehouse workers affiliated with the Ver.di union walked off the job at two Amazon warehouses in Germany. Workers walked off the job again Monday, repeating their demand that they be paid wages according to the national standard for the mail order and retail sectors. Amazon classifies the employees as logistics workers and the company said its employees are paid above average wages for that classification.

In the U.S. Amazon pays its warehouse associates an average of $11.71 according to website Glassdoor.com. For a full-time employee that amounts to a little less than $24,500 annually. The total number of reports from Amazon warehouse workers is just 57, so the sample is pretty small. Thirteen employees also reported received cash bonuses averaging $1,027. Not a king's ransom by any means, but it is higher than the wages paid by some other large U.S. employers.

Wal-Mart Stores Inc. (NYSE: WMT), which will be the target of strikes and protests on Black Friday, pays an average of $8.86 an hour according to figures at Glassdoor, or a full-time annual salary of about $18,500. Glassdoor reports that 53 employees reported receiving cash bonuses averaging $629 and 30 employees reported profit-sharing payments averaging $598. The workers who are striking against Walmart have demanded that the company raise full-time annual salaries to a minimum of $25,000, roughly what Amazon pays.

Even more poorly paid than Walmart employees are baristas at Starbucks Corp. (NASDAQ: SBUX), where the reported hourly wage is $8.81. Tips add another $1,600 or so to the annual salary total, so a typical barista is probably earning about $20,000. Glassdoor.com notes that 4 employees received an average bonus of $882. That's out of 230 reports filed with the company.

Voters in the state of Washington earlier in November approved a measure requiring businesses at the SeaTac airport to pay a minimum wage of $15 an hour. Both Amazon and Starbucks are headquartered in Seattle, so this vote could add a little pressure on both companies to increase pay for lower level employees.

Amazon has never held any collective bargaining sessions with any union or group of employees anywhere, at any time and very likely never will. The company already makes only the tiniest of profits when it makes any profit at all. Could the company's U.S. workers strike? Sure, but there's been no hint of union organizing in the U.S. and the reason for striking would certainly be different from that used by the German workers.

What could tip the balance is any movement by Walmart either to recognize a union or to raise wages. That is so unlikely at this point as to be virtually inconceivable. But stranger things have happened.

The Week Ahead: Another Wave of Panic Selling?

The debt ceiling is widely seen as more important than the government shutdown, but as the two events get closer together, MoneyShow's Tom Aspray examines the technical evidence for signs of potentially deeper corrections ahead.

As we ended last week with no end in sight for the government shutdown, the economists were weighing in on its potential impact. In a recent WSJ article, the conclusion was that "The furloughs are likely to knock 0.1 to 0.2 percentage point off the annualized rate of fourth-quarter economic growth for each week that it lasts."

There are a wide range of views as some feel that the chances of a big economic shock and severe market decline have increased significantly while others worry about the complacency. Others are not expecting such a significant impact as they feel that the markets have already priced it in and a "shutdown for a couple of weeks would be unlikely to be detrimental."

There is more agreement regarding the impact of a failure to raise the debt ceiling but most feel that the adults won't let that happen. Global monetary authorities are also voicing their opinions as the IMF's Christine Lagarde expressed her concerns over the debt ceiling while the ECB's Mario Draghi is concerned over the impact of a prolonged government shutdown.

In the past two years, there have been three example of politically induced panic selling. The first started in late July and early August of 2011 as the debt ceiling debate ended in a stalemate. This was a decline that was difficult to withstand as the S&P fell from an early July high of 1356 to an October low of 1074. This was a drop of 20.8% from high to low. Soon after the October low, there were clear signs from the market internals that a low was in place.

The markets also reacted poorly to the re-election of President Obama as the Dow Industrials lost 800 points in eight days. The next month, stocks dropped 3.5% at the end of December in reaction to the fiscal cliff stalemate. Before this decline, the A/D line broke out to the upside indicating a pullback would be a buying opportunity.

I would not be surprised to see a 3-5% decline if the government shutdown persists for another week or so. A failure to raise the debt ceiling before the deadline is likely to have a much more severe impact on the global equity markets.

There are no signs of panic in the bond market as yields have declined in an orderly fashion. The weekly chart of the 10-year T-note yield shows the recent top in yields as first support in the 2.545% to 2.636% has been reached. The 38.2% Fibonacci retracement support is at 2.372% with the 50% at 2.197%. This is the likely downside target zone for the fourth quarter.

The daily chart of the Vanguard Total Bond Market ETF (BND) does show a completed bottom formation on the daily chart. From the late April highs to the early September low, BND lost over 6%.

The daily on-balance volume (OBV) formed a bullish divergence, line c, at the lows. The bottom was confirmed by the move through the downtrend, line b, and the July high. The next level to watch is the 38.2% Fibonacci retracement resistance at $81.54 and then the 50% at $82.54. This decline in yields should be an opportunity to shorten the maturity of your bond holdings and reduce your exposure to the long end of the bond market.

The Eurozone markets, like the Dax Index have not yet been hit with heavy selling. It is still up well over 44% since the June 2012 lows and is just 2% below its recent highs. The % change chart of the S&P 500 shows that it is now up 31%, which is down from last month's high of 34.5%.

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Oil And Gas Industry Primer

5 Best Canadian Stocks To Own Right Now

A very fundamental aspect of equity investing is understanding the companies and sectors in which you invest. In the equity universe, there are a number of sectors, and equity investors require some specialized knowledge to make educated investment decisions. The oil and gas sector is teeming with complicated terminology that can overwhelm investors new to the space. With a basic understanding of this terminology and the oil and gas business in general, investors can better understand the fundamentals of oil and gas stocks.

Hydrocarbon Basics
Crude oil and natural gas are naturally occurring substances present in rock amidst the earth's crust. The origin of oil and gas is organic material - the remains of plants and animals - compressed in sedimentary rock such as sandstone, limestone and shale. Sedimentary rock is a product of sediment deposits in ancient oceans and other bodies of water. As layers of sediment were deposited on the ocean floor, decaying remains of plants and animals were integrated into the forming rock. This organic material eventually transformed into oil and gas after being exposed to a specific temperature and pressure range deep within the earth's crust.

Because oil and gas are less dense than water, which occurs in huge quantities in the earth's subsurface, oil and gas migrate through relatively porous sedimentary source rock toward the earth's surface. When the hydrocarbons are trapped beneath relatively less-porous cap rock, an oil and gas reservoir is formed. These reservoirs, which are simply layers of rock containing relatively large quantities of oil and gas, are our source for crude oil and gas.

To bring the hydrocarbons to the surface, a well must be drilled through the cap rock and into the reservoir. Drilling rigs work in a similar fashion as a hand drill; a drill bit is attached to a series of drill pipes, and the whole thing is rotated to make a well in the rock. Once the drill bit reaches the reservoir, a productive oil or gas well can be completed and the hydrocarbons can be pumped to the surface. When the drilling activity does not find commercially viable quantities of hydrocarbons, the well is classified as a "dry hole." Dry holes are typically plugged and abandoned.

Production and Reserves
Exploration and production (E&P) companies focus on finding hydrocarbon reservoirs, drilling oil and gas wells, and producing and selling these materials to be later refined into products such as gasoline. This activity is usually referred to as upstream oil and gas activity. Today, hundreds of public E&P companies are listed on U.S. stock exchanges. Virtually all cash flow and income statement line items of E&P companies are directly attached to oil and gas production, Therefore, investors should develop an understanding of basic production terminology when assessing E&P stocks.

E&P companies measure oil production in terms of barrels. A barrel, usually abbreviated as "bbl," is 42 U.S. gallons. Companies often describe production in terms of bbl per day or bbl per quarter. A common methodology in the oil patch is to use a prefix of "m" to indicate 1,000 and a prefix of "mm" to indicate 1 million. Therefore, 1,000 barrels is commonly denoted as "mbbl" and 1 million barrels is denoted as "mmbbl." For example, when an E&P company reports production of 7 mbbl per day, it is referring to 7,000 barrels of oil per day.

Gas production is described in terms of standard cubic feet, which is a measure of gas quantity at 60 degrees Fahrenheit and 14.65 pounds per square inch of pressure. Similar to the convention for oil, the term "mmcf" means 1 million cubic feet of gas. One billion cubic feet is denoted as "Bcf," and 1 trillion cubic feet is denoted as "Tcf." Note that gas market prices are sold on the New York Mercantile Exchange futures market in terms of million British thermal units, or "mmbtu," which is roughly equivalent to 970 cubic feet of gas. Investors frequently think of an mcf of gas as being equivalent to one mmbtu.

E&P companies often describe their production in units of barrels of oil equivalent (BOE). In calculating BOE, companies usually convert gas production into oil equivalent production using an energy-equivalent basis. In this basis, one BOE has the energy equivalent of 6,040 cubic feet of gas - or roughly one bbl to 6 mcf. Oil quantity can be converted into gas quantity in a similar fashion, and gas producers often refer to production in terms of gas equivalency using the term "mcfe." Note that the energy conversion basis often is not reflected in the respective market prices of oil and gas.

E&P companies report their oil and gas reserves - the quantity of oil and gas they own that is still in reservoirs in the ground - in the same bbl and mcf terms as above. Reserves are often used to value E&P companies and make predictions for their revenue and earnings. Note that reserves' values are not GAAP figures and they are not directly booked into a company's financial statements.

Because new reserves are the primary source of future revenue, E&P companies spend a lot of time and effort in finding new petroleum reserves. If an E&P company stops exploring, it will generate revenue from a finite and depleting quantity of petroleum and, therefore, revenue will naturally decline over time. As a result, E&P companies can only maintain or grow a revenue base by acquiring or finding new reserves.

Drilling and Service
E&P companies do not usually own their own drilling equipment or employ drilling rig staff. Instead, they hire contract drilling companies to drill wells for them. Contract drilling companies generally make a living based on the amount of time they work for the E&P companies. Drilling companies do not generate revenue in a way that is tied directly to oil and gas production as is the case for E&P companies.

Once a well is drilled, many activities are involved in generating and maintaining its production over time. These activities, such as well logging, cementing, casing, perforating, fracturing and maintenance are collectively referred to as well servicing. As is the case for drilling, many public companies are involved with well-service activity. Revenue of service companies is tied to the activity level in the oil and gas industry, sometimes measured by the "rig count" or the number of rigs working in the United States at any given time.

Conclusion
Investing in energy stocks can be complicated business. As is the case for most company analysis, a good starting point is to understand how the businesses derive revenue. For E&P companies, investors should strive to understand production and the production potential tied to current and planned exploration activity. For drilling and service companies, investors should develop a feel for the energy cycle, the drilling and service companies' competitive landscape and the omnipresent impact of oil and gas price changes over time.

Does Starbucks Support Rising Prices?

With shares of Starbucks (NASDAQ:SBUX) trading around $76, is SBUX 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

Starbucks is a roaster, marketer, and retailer of coffee operating worldwide. The company purchases and roasts the coffees it sells along with handcrafted tea and other beverages, and a variety of fresh food items through its stores. Starbucks sells a variety of coffee and tea products and licenses its trademarks through other channels such as stores and national food service accounts. In addition to its flagship Starbucks brand, the company's portfolio features Tazo Tea, Seattle's Best Coffee, Starbucks VIA Ready Brew, Starbucks Refreshers beverages, and the Verismo System by Starbucks. Starbucks has developed a solid reputation over the apst several years, which has generated a lot of buzz for its products.

Starbucks is ready to give back to Colombia, the country that has supplied its famous coffee beans for more than 40 years. According to Reuters, Starbucks recently officially announced it would finally be opening its first cafe in the country in 2014, and it expects 50 other coffee shops to follow suit within the next five years, starting in the capital, Bogota, and spreading outward. The cafes will be facilitated through a joint venture between Alsea, a Mexican restaurant firm that already operates more than 500 Starbucks stores in Latin America, and Colcafe, a subsidiary of the fourth-largest Colombia food company.

T = Technicals on the Stock Chart Are Strong

Starbucks stock has been surging higher over the past several years. The stock is currently trading at all-time high prices and looks poised to continue higher. 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, Starbucks is trading above its rising key averages, which signals neutral to bullish price action in the near term.

Source: Thinkorswim

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Starbucks Options	22.33%	40%	39%

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
October Options	Flat	Average
November Options	Flat	Average

As of Wednesday, there is 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.

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 Starbucks’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Starbucks 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)	27.91%	27.50%	14.00%	-0.51%
Revenue Growth (Y-O-Y)	13.26%	11.26%	10.59%	10.96%
Earnings Reaction	7.61%	-0.82%	4.10%	9.05%

Starbucks has seen increasing earnings and revenue figures over the past four quarters. From these numbers, the markets have been upbeat about Starbucks’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has Starbucks stock done relative to its peers – Dunkin’ Brands Group (NASDAQ:DNKN), McDonald’s (NYSE:MCD), and Green Mountain Coffee Roasters (

target=”_blank”>NASDAQ:GMCR

) — and sector?

	Starbucks	Dunkin’ Brands Group	McDonald’s	Green Mountain Coffee Roasters	Sector
Year-to-Date Return	41.43%	37.01%	11.30%	109.00%	33.27%

Starbucks has been a relative performance leader, year to date.

Conclusion

Starbucks provides in-demand coffee and tea products and services to consumers around the world. The company is reportedly ready to expand to Colombia, where it sources most of its beans. The stock has been flying higher in recent years and is now trading at all-time high prices. Over the past four quarters, earnings and revenues have been rising, which have led to upbeat investors in the company. Relative to its peers and sector, Starbucks has been a year-to-date performance leader. Look for Starbucks to continue to OUTPERFORM.

3 Soaring Stocks That Are Beating the Odds

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Between the current government shutdown and looming debt ceiling crisis, it’s almost no wonder stock have been showing some weakness of late. From Sept. 18 until Oct. 8, the Dow Jones Industrial Average shed nearly 6%, while the S&P 500 fell 4%.

But even without the broader market’s momentum, an impressive 29 stocks trading on U.S. exchanges managed to hit all-time highs on Oct. 8, according to Barchart.com.

Given the volatility in the markets over the past two weeks or so, it’s amazing that any equities are reaching new highs, quite frankly.

Of course, that recent upwards momentum doesn’t help investors if it isn’t going to continue. With that in mind, I sorted through the 29 stocks that rose to the top earlier in the week to find which ones are capable of keeping up the momentum.

Here are the top three stocks for investors to consider:

Wolverine World Wide

Year-to-Date Return: 44%

Wolverine World Wide (WWW) simply isn’t the same company it was a year ago — and its record third-quarter results are proof. WWW completed a $2 billion acquisition of Collective Brands last year, adding the Sperry Top-Sider, Saucony, Stride Rite and Keds brands to its portfolio.

Transformational deals rarely come along, but this one surely is close. Prior to the deal, Wolverine’s Heritage Group — which includes Wolverine, Cat Footwear, Bates, Sebago, Harley-Davidson and HyTest — accounted for approximately 41% of its revenue. Today, the group represents just 20% of the company’s overall revenue.

That’s good, though, because WWW boasts a more balanced business model with three strong operating segments instead of only two. And each segment grew revenue year-over-year, with Lifestyle and Performance segments posting respective gains of 10% and 13%.

Plus, each of the acquired brands have contributed to the overall success of Wolverine’s business so far in 2013, while WWW also has a nicely growing global presence. The result: Wolverine raised its full-year adjusted earnings to at least $2.73 per share — which itself is 19% year-over-year growth.

For the cherry on top, Wolverine World Wide is focused on growing its business while also paying off its debt as quickly as possible. Its net debt of $994 million at the end of Q3 is 15% lower than than on the transaction closing date.

Amira Nature Foods

Year-to-Date Gains: 77%

Amira Nature Foods (ANFI) went public last October at $10 per share — and now the stock is trading around 40% higher than that offer price. Compared to IPOs in general, however, the past year’s been anything but smooth. ANFI dropped 19% on its first day of trading and didn’t rise above its offering price until early September.

Investors were disappointed with both the pricing and the gross proceeds, as Amira raised only $90 million. Originally, it had intended to repay $85 million of its debt with some of the net proceeds and was only able to repay $52 million.

But that’s all in the past now — and future for Amira Nature Foods is another story altogether. In fact, Jefferies & Co. (one of the underwriters) raised its 12-month target price on ANFI from $14 to $21, reiterating its “buy” rating. It sees four specific things driving Amira’s business: Strong results, U.S. expansion, debt refinancing and the further roll-out of its UK business.

The strong results are obvious. In the first quarter, revenue grew 38% while EPS expanded 62%. But for 2013, Amira generated just $6.8 million of its $414 million in revenue from the states. That’s a growth opportunity; it can and will do better. And the company does continue to gain ground in the UK — good news considering, with the exception of India, Britain is Amira’s fastest-growing market.

In terms of debt, ANFI reduced its obligations in the first quarter by 13% and it has refinanced some of its expensive Indian debt, which will lower interest costs. Plus, Amira’s enterprise value as a multiple of EBITDA is half that of Hain Celestial (HAIN), its much larger peer.

Mazor Robotics

Year-to-Date Gains: 100%

I don’t usually recommend companies that are losing money, but Mazor Robotics (MZOR) is an exception and I believe it is at the beginning of a very long run. Mazor is based in Israel and its Renaissance guidance system is transforming spinal surgery.

The potential market for Mazor is estimated by some to be as much as $14 billion. While such numbers are always wildly inflated and should be taken with a grain of salt, the estimate still gives you an idea of just how big the opportunity is — especially considering Mazor’s revenue in the first six months of the year was just $11.8 million.

No wonder Mazor Robotics stock has been sizzling. MZOR began trading as an ADR in late May and, in less than five months, has doubled in price to over $20.

Smart money believes in the stock too. Larry Feinberg runs a healthcare hedge fund and his firm invested $7.5 million in Mazor back in August 2012, and another $7.5 million over the summer. It’s not his biggest investment by a long shot — but it just might turn out to be one of his best.

As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.

Top Tech Stocks To Own Right Now

With the�SPDR S&P Biotech Index�up 35% over the trailing-12-month period, it's evident that investment dollars are willingly flowing into the biotech sector. Keeping that in mind, let's have a look at some of the rulings, studies, and companies that made waves in the sector last week.

Taking a page right out of the old West, this week exposed the good, the bad, and the downright ugly of the biotech sector with regard to clinical data.

The good
Heralding the charge higher was AcelRx Pharmaceuticals (NASDAQ: ACRX  ) which advanced 18% on the week after disclosing on Tuesday that its post-operative pain management system, Sufentanil NanoTab PCA, met its primary endpoint in late-stage trials and reconfirmed all previous late-stage study results. This data is strong enough for AcelRx to seek approval from the Food and Drug Administration with a new drug application filing expected next quarter. I'd be cautious with AcelRx moving forward, as the possibility of an FDA rejection for opioid-based treatments is always a possibility.

Top Tech Stocks To Own Right Now: COMS PLC ORD GBP0.001(COMS.L)

Coms plc engages in the development and commercialization of Internet telephony services, and supply and distribution of associated equipment to small and medium sized businesses in the United Kingdom. The company?s Internet telephony enables telephone calls to be transmitted as data over the Internet. It offers hosted VoIP, voice optimized broadband for business, PSTN CPS business telephone, audio and video conferencing, inbound numbers, number porting, and enterprise VoIP services. The company?s Internet telephony services related equipment comprises Internet telephony handsets, VOIP gateways, video phones, and integration consulting and SIP trunks. Coms plc was founded in 2000 and is based in London, the United Kingdom.

Top Tech Stocks To Own Right Now: StemCells Inc (STEM)

StemCells, Inc. (StemCells), incorporated in August 1988, is engaged in the research, development, and commercialization of stem cell therapeutics and related tools and technologies for academia and industry. The Company is focused on developing and commercializing stem and progenitor cells as the basis for therapeutics and therapies, and cells and related tools and technologies to enable stem cell-based research and drug discovery and development. The Company�� primary research and development efforts are focused on identifying and developing stem and progenitor cells as potential therapeutic agents. The Company has two therapeutic product development programs, including its CNS Program, which is developing applications for HuCNS-SC cells, its human neural stem cell product candidate, and its Liver Program, which is characterizing the Company�� human liver cells as a therapeutic product.

CNS Program

The Company in its CNS Program, is in clinical development with its HuCNS-SC cells for a range of disorders of the central nervous system. The CNS includes the brain, spinal cord and eye. In February 2012, the Company had completed a Phase I clinical trial in Pelizeaus-Merzbacher Disease (PMD), a fatal myelination disorder in the brain.

The Company�� CNS Program is focused on developing clinical applications, in which transplanting HuCNS-SC cells protect or restore organ function of the patient before such function is irreversibly damaged or lost due to disease progression. The Company�� initial target indications are PMD, and more generally, diseases in which deficient myelination plays a central role, such as cerebral palsy or multiple sclerosis; spinal cord injury, disorders in which retinal degeneration plays a central role, such as age-related macular degeneration or retinitis pigmentosa. The Company�� product candidate, HuCNS-SC cells, is a purified and expanded composition of normal human neural stem cells. Its HuCNS-SC cells can be directly transp! lanted.

Liver Program

Liver stem or progenitor cells offer an alternative treatment for liver diseases. A liver cellular therapy or cell-based therapeutic provide or support liver function in patients with liver disease. The Company held a portfolio of issued and allowed patents in the liver field, which cover the isolation and use of both hLEC cells and the isolated subset, as well as the composition of the cells themselves.

The Company�� range of cell culture products, which are sold under the SC Proven brand, includes iSTEM, GS1-R, GS2-M, RHB-A, RHB-Basal, NDiff N2, and NDiff N2B27. Its iSTEM is a serum-free, feeder-free medium that maintains mouse embryonic stem cells in their pluripotent ground state by using selective small molecule inhibitors to block the pathways, which induce differentiation. RHB-A is a defined, serum-free culture medium for the selective culture of human and mouse neural stem cells and their maintenance and expansion as adherent cell populations. RHB-Basal is a defined, serum-free basal medium. When supplemented with specific growth factors, this media is formulated for the propagation and differentiation of adherent neural stem cells. RHB-Basal can also be tailored to specific-cell type requirements by the addition of customer preferred supplements.

The Company�� NDiff N2 is a defined serum-free scell culture supplement for the derivation, maintenance, expansion and/or differentiation of human and mouse embryonic stem (ES) cells and tissue-derived neural stem cells supplement. Its NDiff N2-AF is a serum-free and animal component-free version of NDiff N2. Its NDiff N2B27 is a defined, serum-free medium for the differentiation of mouse embryonic stem cells to neural cell types. NDiff N27-AF is a serum-free and animal component-free version of NDiff N27. Its GS1-R is a serum-free media formulation shown to enable the derivation and long-term maintenance of true, germline competent rat embryonic stem cells without the add! ition of ! cytokines or growth factors. Its GS2-M is a defined, serum- and feeder-free medium for the derivation and long-term maintenance of true, germline competent mouse iPS cells.

The Company also markets a number of antibody reagents for use in cell detection, isolation and characterization. These reagents are also under the SC Proven brand and it includes STEM24, STEM101, STEM121 and STEM123. Its STEM24 is a human antibody that recognizes human CD24, also known as heat stable antigen (HSA), a glycoprotein expressed on the surface of many human cell types, including immature human hematopoietic cells, peripheral blood lymphocytes, erythrocytes and many human carcinomas. Its CD24 is also a marker of human neural differentiation. Its STEM101 is a human-specific mouse antibody that recognizes the Ku80 protein found in human nuclei. Its STEM121 is a human-specific mouse antibody that recognizes a cytoplasmic protein of human cells. Its STEM123 is a human-specific mouse antibody that recognizes human glial fibrillary acidic protein (GFAP).

The Company�� Other products marketed under SC Proven include total cell genomic DNA (gDNA), RNA and protein lysate reagents purified from homogenous stem cell populations for intra-comparative studies, such as Epigenetic fingerprinting, Southern, Western and Northern blots, PCR, RT-PCR and microarrays. This range of purified stem cell line lysates includes mouse embryonic stem (ES) cells propagated in SC Proven 2i inhibitor-based GS2-M media and mouse ES cell-derived and fetal tissue-derived neural stem (NS) cells propagated in SC Proven RHB-A media.

Advisors' Opinion:

• [By James E. Brumley]

  When an investor thinks of spinal-related stem cell stocks, usually a name like Neuralstem, Inc (NYSEMKT: CUR) or StemCells Inc (NASDAQ: STEM) comes to mind. And well they should. STEM has logged some amazing breakthroughs in the field of spinal cord repair, while CUR has done the same. Not all back problems are spinal cord related though. In fact, most back problems - and therefore the most opportunity - are bone and disc related problems. That's where a young gun like BioRestorative Therapies (OTCBB: BRTX) can step in and make stem cell waves. BRTX has developed an approach to rejuvenate and revive failing spinal discs, potentially ending pain for millions of back-pain sufferers, and circumventing expensive spinal surgeries that are in increasing burden on insurance companies.

• [By John Udovich]

  The results of a recent Pew Center Poll regarding attitudes towards abortion and various forms of stem cell research could be a good sign for the stem cell industry along with small cap stem cell stocks like StemCells Inc (NASDAQ: STEM), NeoStem Inc (NASDAQ: NBS), Neuralstem, Inc (NYSEMKT: CUR),�International Stem Cell Corp (OTCMKTS: ISCO) and BioRestorative Therapies (OTCBB: BRTX). Basically, Americans think that having an abortion is a moral issue with 49% of American adults believing abortion is morally wrong, 23%�view it not as a moral issue and and 15% view it as morally acceptable. However and when Americans were asked about issues surrounding�human embryos, such as stem cell research or in vitro fertilization, as a matter of morality, their views were different.

Top High Tech Stocks To Buy For 2014: TeleNav Inc.(TNAV)

TeleNav, Inc. provides personalized navigation and location based services (LBS) in the United States and internationally. It offers GPS Navigator, a voice guided, real time, turn by turn mobile navigation service on a white label basis, such as Sprint Navigation and AT&T Navigator, as well as under the TeleNav brand. The company also provides mobile resource management solutions that allow enterprises to monitor and manage mobile workforces and assets by using its LBS platform to track job status and the location of workers, field assets, and equipment. Its enterprise solutions include TeleNav Track service, as well as TeleNav Vehicle Manager, TeleNav Vehicle Tracker, and TeleNav Asset Tracker. In addition, the company offers mobile navigation services through on-board and connected systems. Further, it focuses on developing LBS to new device platforms, such as tablet devices, as well as new LBS for mobile phones, including location based mobile advertising, commerce, and social networking. The company distributes its services to consumers, wireless carriers, enterprises and automobile manufacturers, and original equipment manufacturers through its wireless carrier partners, as well as through its Web site and mobile phone application stores. TeleNav, Inc. is headquartered in Sunnyvale, California.

Advisors' Opinion:

• [By Seth Jayson]

  Telenav (Nasdaq: TNAV  ) reported earnings on April 25. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q3), Telenav beat expectations on revenues and beat expectations on earnings per share.

Top Tech Stocks To Own Right Now: GRAVITY Co. Ltd.(GRVY)

Gravity Co., Ltd. engages in the development and publishing of online games in Japan, Taiwan, Brazil, the Philippines, Indonesia, Singapore, Malaysia, Thailand, and the Russian Federation. It offers massively multiplayer online role playing games, casual online games, social network games, mobile games, and animation and character-based merchandise, as well as multiplatform and Internet protocol television games. The company?s principal product includes Ragnarok Online, an action adventure-based multiplayer online role playing game that combines cartoon-like characters, community-oriented themes, and combat features enabling various players to interact with one another. Its other multiplayer online role playing games comprise R.O.S.E. Online, Requiem, and Emil Chronicle Online. The company also licenses the merchandizing rights of character-related products based on its online games. In addition, it provides the animation series of Ragnarok Online in DVD and video on dema nd formats, as well as broadcasts these series on televisions. Further, the company, along with its licensees, markets dolls, stationery, and other character-based merchandise, as well as game manuals, monthly magazines, and other publications. Additionally, it offers Pororo Game, an Internet protocol television game. The company was founded in 2000 and is based in Seoul, Korea. As of December 31, 2010, Gravity Co., Ltd. operates as a subsidiary of GungHo Online Entertainment, Inc.

Top Tech Stocks To Own Right Now: Rexahn Pharmaceuticals Inc (RNN)

Rexahn Pharmaceuticals, Inc. (Rexahn) is a development-stage biopharmaceutical company. The Company focuses on the development of cures for cancer to patients worldwide. The Company�� pipeline features one drug candidate in Phase II clinical trials. The Company also has several other drug candidates in pre-clinical development. In addition, the Company has two renal cell carcinoma (CNS) candidates, Serdaxin, CNS Disorders drug for depression and neurodegenerative diseases and Zoraxel, which is a erectile dysfunction (ED) and sexual dysfunction drug that are in clinical stages and the Company is are exploring options for further development . The Company�� drug candidate, Archexin is an anticancer Akt inhibitor.

Archexin

Archexin is potent inhibitor of the Akt protein kinase (Akt) in cancer cells. Archexin has FDA orphan drug designations for five cancers (RCC, glioblastoma, and cancers of the ovary, stomach and pancreas). Multiple indications for other solid tumors can also be pursued. Archexin inhibit both activated and inactivated forms of Akt, and to reverse the drug resistance observed with the protein kinase inhibitors. Archexin is an antisense oligonucleotide (ASO) compound that is complementary to Akt mRNA, and selective for inhibiting mRNA expression and production of Akt protein. As of December 31, 2011, Archexin was in Phase II clinical trials for the treatment of pancreatic cancer with enrollment completed in September, 2011.

Serdaxin

Serdaxin is an extended release formulation of clavulanic acid, which is an ingredient present in antibiotics approved by the FDA. The Company had been developing Serdaxin for the treatment of depression and neurodegenerative disorders. From January to September, 2011, the Company conducted a randomized, double-blind, placebo-controlled study compared two doses of Serdaxin, 0.5 milligram and 5 milligram, to placebo over an eight-week treatment period for major depressive disorder (MDD) patients. As of Dec! ember 31, 2011, the Company had not made a determination of Serdaxin�� future paths or resource allocations to further develop Serdaxin to treat MDD.

Zoraxel

Zoraxel is an orally administered, on-demand tablet to treat sexual dysfunction. Zoraxel is a dual enhancer of neurotransmitters in the brain that play a key role in sexual activity phases of motivation and arousal, erection and release, and may be the ED drug to affect all three of these phases of sexual activity. As of December 31, 2011, the Company was evaluating how to proceed with the Phase IIb study of Zoraxel.

The Company�� Pre-clinical Pipeline Drug Candidates includes RX-1792, which is a small molecule anticancer EGFR inhibitor; RX-5902, which is a small molecule anticancer ribonucleic acid (RNA) helicase regulator; RX-3117, which is a Small molecule anticancer deoxyribonucleic acid (DNA) synthesis Inhibitor; RX-8243, which is a small molecule anticancer aurora kinase inhibitor; RX-0201-Nano, which is a nanoliposomal anticancer Akt inhibitor; RX-0047-Nano, which is an nanoliposomal anticancer HIF-1 alpha inhibitor and RX-21101, which is a nano-polymer Anticancer.

Advisors' Opinion:

• [By Roberto Pedone]

  One under-$10 biopharmaceutical player that's just starting to move into breakout territory is Rexahn Pharmaceuticals (RNN), which is engaged in the development of novel treatments for cancer to patients. This stock has been on fire so far in 2013, with shares up sharply by 62%.

  If you take a look at the chart for Rexahn Pharmaceuticals, you'll notice that this stock has been uptrending strong for the last month, with shares moving higher from its low of 36 cents per share to its intraday high of 53 cents per share. During that uptrend, shares of RNN have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of RNN into breakout territory above some near-term overhead resistance levels at 49 cents to 50 cents per share. It's worth noting that volume today is tracking in extremely strong with over 3 million shares traded, versus its three-month average action of 1.22 million shares.

  Traders should now look for long-biased trades in RNN if it manages to break out above Thursday's intraday high of 53 cents per 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 1.22 million shares. If that breakout hits soon, then RNN will set up to re-test or possibly take out its next major overhead resistance levels at 64 cents to its 52-week high at 66 cents per share. Any high-volume move above 66 cents to 67 cents per share could then send RNN towards its next major overhead resistance levels at 81 cents per share.

  Traders can look to buy RNN off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at 47 cents per share. One can also buy RNN off strength once it clears 53 cents per share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

• [By James E. Brumley]

  With just a quick glance at a chart of Rexahn Pharmaceuticals, Inc. (NYSEMKT:RNN), it would be easy to conclude it's nothing but a volatile mess. When you take a step back and look at a long-term weekly chart of RNN, however, it starts to become clear that this small cap biopharma name is on the verge of a monster-sized breakout. First things first, however.

Top Tech Stocks To Own Right Now: Cirrus Logic Inc.(CRUS)

Cirrus Logic, Inc., a fabless semiconductor company, develops high-precision analog and mixed-signal integrated circuits (ICs) for audio and energy markets worldwide. The company offers analog and mixed-signal audio converter and audio digital signal processor (DSP) products, which include analog-to-digital converters (ADCs); digital-to-analog converters (DACs); chips for integrating ADCs and DACs into an IC; digital interface ICs; volume controls; and digital amplifiers, as well as audio DSPs for consumer electronics applications. Its audio products are used in various consumer applications, including portable media players, smartphones, tablets, AVRs, DVD and Blu-ray disc players, home theater systems, set-top boxes, MP3 players, gaming devices, sound cards, and digital televisions; professional applications comprising digital mixing consoles, multitrack digital recorders, and effects processors; automotive applications consisting of amplifiers, satellite radio systems, telematics, and multi-speaker car-audio systems; and networked digital audio applications. The company also provides high-precision analog and mixed-signal ICs for energy control, energy measurement, and energy exploration applications; and ICs, board-level modules, and hybrids under the Apex Precision Power brand name for high-power pulse width modulation (PWM) and power amplifier applications; and proprietary products, which include ADCs, DACs, linear amplifiers, PWM amplifiers, and amplifier ICs; and system reference designs. Its energy products are used in digital utility meters, power supplies, lighting ballasts, motor control, energy exploration, and high-power systems. The company sells its products primarily to through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was founded in 1984 and is headquartered in Austin, Texas.

Advisors' Opinion:

• [By Evan Niu, CFA]

  Even as Apple (NASDAQ: AAPL  ) continues to get relentlessly crushed today following Cirrus Logic's (NASDAQ: CRUS  ) preliminary release last night, there may still be two silver linings for Apple investors. The data can't all be bad (it's mostly bad).

• [By Evan Niu, CFA]

  Throughout this whole time, Cirrus Logic (NASDAQ: CRUS  ) has been on my radar as the primary supplier of audio codec chips in iDevices, with Apple comprising 91% of sales in the December quarter. I've never invested in the company, primarily due to a feeling that I'd missed the boat already. Shares topped out over $45 late last year, making me think Cirrus would always be the one that got away.

Top Tech Stocks To Own Right Now: Analog Devices Inc (ADI.O)

Analog Devices, Inc. (Analog Devices), incorporated on January 18, 1965, is engaged in the design, manufacture and marketing of a range of analog, mixed-signal and digital signal processing integrated circuits (ICs). The Company produces a range of products, including data converters, amplifiers and linear products, radio frequency (RF) ICs, power management products, sensors based on micro-electro mechanical systems (MEMS) technology and other sensors, and processing products, including DSP and other processors, which are designed to meet the needs of a base of customers. The Company's products are embedded inside many different types of electronic equipment, including industrial process control systems; instrumentation and measurement systems; wireless infrastructure equipment, and aerospace and defense electronics. The Company designs , manufactures and markets a range of ICs, which incorporate analog, mixed-signal and digital signal processing technologies. The Comp any's product portfolio includes both general-purpose products used by a range of customers and applications, as well as application-specific products. On March 30, 2012, the Company acquired Multigig, Inc.

Analog Products

The Company's product portfolio includes several thousand analog ICs. The Company's analog IC customers include original equipment manufacturers (OEMs) and customers who build electronic subsystems for integration into larger systems. The Company is a supplier of data converter products. Data converters translate real-world analog signals into digital data and also translate digital data into analog signals. The Company is also a supplier of amplifiers. Amplifiers are used to condition analog signals. The Company provides precision, instrumentation, intermediate frequency/radio frequency (RF), broadband, and other amplifiers. The Company also offers a range of precision voltage references, which are used in a range of application s. The Company's analog product line also includes a range! p! ortfolio of RF ICs covering the RF signal chain, from RF function blocks, such as phase locked loops, frequency synthesizers, mixers, modulators, demodulators, and power detectors, to broadband and short-range single chip transceiver solutions.

The Company's RF ICs support the requirements of cellular infrastructure and a range of applications in the Company's target markets. Also within the Company's analog technology portfolio are products, which are based on MEMS technology. This technology enables the Company to build small sensors, which incorporate an electromechanical structure and the supporting analog circuitry for conditioning signals obtained from the sensing element. The Company's MEMS product portfolio includes accelerometers used to sense acceleration, gyroscopes used to sense rotation, inertial measurement units used to sense multiple degrees of freedom combining multiple sensing types along multiple axis, and MEMS microphones used to sense audio . The Company's current revenue from MEMS products is derived from the automotive end market. In addition to the Company's MEMS products, its other analog product category includes isolators. The Company's isolators have been designed for applications, such as universal serial bus isolation in patient monitors, where it allows hospitals and physicians to adopt the advances in computer technology to supervise patient health and wirelessly transmit medical records. In smart metering applications, the Company's isolators provide electrostatic discharge performance. In satellites, where any malfunction can be catastrophic, the Company's isolators help protect the power system while enabling designers to achieve small form factors. Power management & reference products make up the balance of the Company's analog sales. Those products, which include functions such as power conversion, driver monitoring, sequencing and energy management, are developed to complement analog signal ch ain components across core market segments from micro ! power,! e! nergy-s! ensitive battery applications to power systems in infrastructure and industrial applications.

Digital Signal Processing Products

Digital Signal Processing products (DSPs) complete the Company's product portfolio. DSPs are optimized for numeric calculations, which are essential for instantaneous, or real-time, processing of digital data generated, from analog to digital signal conversion. The Company's DSPs are designed to be fully programmable and to execute specialized software programs, or algorithms, associated with processing digitized real-time, real-world data. Programmable DSPs are designed to provide the flexibility to modify the device's function using software. The Company's DSP IC customers write their own algorithms using software development tools provided by the Company and third-party suppliers. The Company's DSPs are designed in families of products, which share common architectures and therefore can execute the same software across a range of products. The Company's customers use the Company's products to solve a range of signal processing challenges across its core market and segment focus areas within the industrial, automotive, consumer and communications end markets. As an integrated part of the Company's customers' signal chain, there are other Analog Devices products connected to its processors, including converters, audio and video codecs and power management solutions.

The Company competes with Broadcom Corporation, Maxim Integrated Products, Inc., Cirrus Logic, Inc., Microchip Technology, Inc., Freescale Semiconductor, Inc., NXP Semiconductors, Infineon Technologies, ST Microelectronics, Intersil Corporation, Silicon Laboratories, Inc., Knowles Electronics, Texas Instruments, Inc. and Linear Technology Corporation.

Top Tech Stocks To Own Right Now: Aviat Networks Inc.(AVNW)

Aviat Networks, Inc. engages in the design, manufacture, and sale of a range of wireless networking products, solutions, and services worldwide. It offers point-to-point and point-to-multipoint digital microwave transmission systems for first/last mile access, middle mile/backhaul, and long distance trunking applications. The company?s products include broadband wireless access base stations and customer premises equipment for fixed and mobile; point-to-point digital microwave radio systems for access, backhaul, trunking, and license-exempt applications; and supporting network deployments, network expansion, and capacity upgrades. It also provides network management software solutions to enable operators to deploy, monitor, and manage its systems, as well as third party equipment, such as antennas, routers, and multiplexers to build and deploy a wireless transmission network and a suite of turnkey support services. In addition, the company offers professional services, su ch as network planning and design, site surveys and builds, systems integration, installation, maintenance, network monitoring, training, and customer services. It serves mobile and fixed communications service providers, original equipment manufacturers, private network operators, government agencies, transportation and utility companies, system integrators, public safety agencies, and broadcast system operators, as well as pipeline, railroad, and other industrial enterprises that operate wireless networks. The company was formerly known as Harris Stratex Networks, Inc. and changed its name to Aviat Networks, Inc. in January 2010. Aviat Networks, Inc. is headquartered in Santa Clara, California.

CMO vs CDO: Same Outside, Different Inside

10 Best Warren Buffett Stocks To Invest In 2014

One of the most important innovations from Wall Street was the act of pooling loans together to then split up into separate interest bearing instruments. This concept of collateralizing and structured financing predates the market for collateralized mortgage obligations (CMOs) and collateralized debt obligations (CDOs). It was not until the early 1980s that the concept was formalized by repackaging mortgages to create the mortgage backed security industry (MBS).

MBS's are secured by a pool of mortgages where all the interest and principal simply pass through to investors. CMOs were created to give investors specific cash flows instead of just the pass through of interest and principal. CMOs were first issued in 1983 for Federal Home Loan Mortgage Corp (Freddie Mac) by the investment banks First Boston and Salomon Brothers, which took a pool of mortgage loans, divided them into tranches with different interest rates and maturities, and issued securities based on those tranches. The originating mortgages served as collateral.

In contrast to CMOs, CDOs, which came along later in the 1980s, encompass a much broader spectrum of loans beyond mortgages. While there are many similarities between the two, there are some distinct differences in their construction, the types of loans held in aggregate and the types of investors seeking out either one.

CMO - Born Out of a Need

Collateralized mortgage obligations (CMO), a type of mortgage backed security (MBS), are issued by a third party dealing in residential mortgages. The issuer of the CMO collects residential mortgages and repackages them into a loan pool which is used as collateral for issuing a new set of securities. The issuer then redirects the loan payments from the mortgages and distributes both the interest and principal to the investors in the pool. The issuer collects a fe! e, or spread, along the way. With CMOs, the issuers can slice up predictable sources of income from the mortgages by using tranches, but like all MBS products, CMOs are still subject to some prepayment risk for investors. This is the risk that mortgages in the pool will be prepaid early, refinanced, and/or defaulted on. Unlike an MBS, the investor can choose how much reinvestment risk he is willing to take in a CMO.

Below is an example of a simplified version of three tranches of various maturities using a sequential payout structure. Tranche A, B and C will all receive interest payments over their life but the principal payout flows sequentially until each CMO is retired. For example: Tranche C will not receive any principal payouts until Tranche B is retired, and Tranche B will not receive any principal payouts until Tranche A is retired.



While the securities themselves can seem complicated and it's easy to get lost in all the acronyms, the process of collateralizing loans is quite simple.

The issuer of the CMO, as a legal entity, is the legal owner of a pool of mortgages which are purchased from banks and mortgage companies. Prior to the advent of repackaging mortgages, a borrower would visit his local bank who would lend out money for the purchase of a home. The bank would then hold the mortgage using the house as collateral until it was paid off or the house was sold. While some banks still hold mortgages on their books, the majority of mortgages are sold off soon after closing to third parties who repackage them. For the initial lender, this provides some sense of relief as they no longer own the loan or have to service the loan. These mortgages then become collateral and are grouped together with loans of si! milar qua! lity into tranches (which are just slices of the pool of loans). By creating CMOs from a pool of mortgages, issuers can design specific, separate interest and principal streams in various maturity lengths to match investor's needs with the cash flows and maturities they desire. For legal and tax purposes, CMOs are held inside a real estate mortgage investment conduit (REMIC) as a separate legal entity. The REMIC is exempt from federal tax on the income they collect from the underlying mortgages at the corporate level, but income paid to investors is considered taxable.

CDO - Some Good Some Bad

The collateralized debt obligation (CDO) came to life in the late 1980's and shares many of the characteristics of a CMO: loans are pooled together, repacked into new securities, investors are paid interest and principal as income and the pools are sliced into tranches with varying degrees of risk and maturity. A CDO falls under the category known as an asset backed security (ABS) and like an MBS, uses the underlying loans as the asset or collateral. The development of the CDO filled a void and provided a valid way for lending institutions to essentially move debt into investments through securitization, the same way mortgages were securitized into CMOs. Similar to CMOs issued by REMICs, CDOs use special purpose entities (SPE) to securitize their loans, service them and match investors with investment securities. The beauty of a CDO is that it can hold just about any income producing debt like credit cards, automobile loans, student loans, aircraft loans and corporate debt. Like CMOs, the slicing up of the loan pieces is structured from senior to junior with some oversight from rating agencies who assign grade ratings just like a single issue bond, e.g. AAA, AA+, AA, etc.

Below is an example of how a CDO is structured. Each CDO has a balance sheet just like any company would have. The assets are comprised of the income producing components like loans, bonds, etc. Each bond issued on the left is tied to a specific pool of assets on the right. The bonds are then rated by third parties based on the seniority of their claims to the pool and the perceived quality of the underlying assets. In theory, bonds of lower quality ratings and seniority would command higher rates of return by investors.



CMOs vs. CDOs

There are many similarities between CMOs and CDOs as the latter were modeled after the former by design. CMOs can be issued by private parties or backed by quasi government lending agencies (Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Mortgage Corp., etc.) while CDOs are private labeled.

While CMOs and CDOs have similar wrappers on the outside, they are different on the inside. The CMO is a little easier to understand as the cash flow it provides is from a specific pool of mortgages while the CDO cash flows can be backed by automobile loans, credit card loans, commercial loans and even some tranches from a CMO. While the CMO market did suffer some impact from the real estate implosion of 2007, the CDO market was hit harder. Only a small portion of the CMO market was considered sub-prime while CDOs made sub-prime CMOs their core holdings. The CDOs that purchased the lowest ranked, riskiest tranches of CMOs blending them with other ABS assets suffered dearly when the sub-prime tranches went south. It's unlikely the mistakes of the past will be made again as there is much more oversight from the SEC than there was before, but sometimes history repeats itself. Both products play the same role of pooling loans and asset! s together then matching investors with the cash flows, so it's up to the investor to decide how much risk they want to take.

CDOs were a relatively small segment of the ABS market with only $340 million outstanding issues in 2002 compared to the total CMO market of $4.7 trillion. The CDO market ballooned after 2002 as the securitization of asset backed loans grew and issuers advanced their purchases of the riskier CMO tranches. As the real estate markets mushroomed, so did the CDO/CMO markets as the total outstanding CDOs peaked at $1.3 trillion in 2007. This phenomenal growth came to an abrupt halt as the real estate bubble burst, reducing the CDO market to around $850 million in 2013.

While it looked good on paper to buy the riskier tranches of CMOs that were not in demand and bundling them into CDOs, the quality of those tranches which were presumed to be sub-prime turned out to be much more sub-prime than first thought. Rating agencies and CDO issuers are still being held accountable, paying fines and making restitution after the housing market collapse of 2007 which led to billions in losses in CDOs. Many became worthless overnight, downgraded from AAA to junk. Those who invested heavily in the riskiest CDOs experienced larges losses when those issues ultimately failed. A number of CDO issuers were charged and/or fined for their role in packaging risky assets that failed. One of the largest and most publicized cases was against Goldman Sachs (NYSE:GS) in 2010, who was officially charged and fined for structuring CDOs and not properly informing its clients about the potential risks. Based on estimates from the Securities and Exchange Commission, investors lost more than $1 billion after the dust settled in 2010.

CDOs still exist today but will forever wear the scars of good decisions gone bad.



The Bottom Line

Investors worldwide learned a valuable lesson from the early days of collateralizing. It took some creative thinking to find a way to take a large pool of loans and create secured investments for investors. This freed up capital for lenders, created many jobs for issuers, created liquidity in a not so liquid market, and helped fuel homeownership. The same process that fueled homeownership eventually fueled a real estate bubble and subsequent collapse. The process of collateralization energized itself but ultimately caused its own collapse.

Top Tech Stocks To Invest In Right Now

While as a company Apple (NASDAQ: AAPL  ) seems to be getting things right, its stock has continued to languish. Recent patent filings suggest that the company is working on a new technology called Augmented Reality (AR) that may have the potential to be a catalyst. Apple stock, which has tumbled since breaking the $700 level, seems to be stuck in a range lately. Investors who own Apple stock continue to be convinced that shares will recover, yet the Street has turned somewhat against the tech giant.

In the video below, Fool.com contributor Doug Ehrman discuss AR technology; its application by Apple, Google (NASDAQ: GOOG  ) , and Nokia (NYSE: NOK  ) ; and the potential impact on Apple stock as well as the company.

There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. Eric Bleeker,�The Motley Fool's senior technology analyst and managing bureau chief, is prepared to fill you in on both reasons to buy and sell Apple and the opportunities left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

Top Tech Stocks To Invest In Right Now: Semiconductor Manufacturing International Corporation(SMI)

Semiconductor Manufacturing International Corporation, an investment holding company, engages in the computer-aided design, manufacture, packaging, testing, and trade of integrated circuits. It offers a range of technologies from 0.35μm to 65nm with capabilities that include logic, mixed signal/RF CMOS, high voltage, embedded, flash, EEPROM, and CIS technology. The company also provides portfolio of semiconductor intellectual property (IP) blocks from 0.35um to 65nm to support the design needs of customers; ASIC design services; reference flows; mixed-signal/RF PDKs; and multi-project wafer services. In addition, it involves in the design and manufacture of semiconductor masks; and provides assembly and testing, wafer bumping, and wafer probing/testing services. Further, the company offers marketing related activities; operates convenience stores; and manufactures and trades in solar cell related semiconductor products. Its products are used primarily in mobile, network ing, and wireless local area network applications, as well as in consumer and communications products, including digital television, set-top box, mobile, portable media player, and personal digital assistant applications. The company serves integrated device manufacturers, fables semiconductor companies, and system companies principally in the United States, Europe, and the Asia Pacific. Semiconductor Manufacturing International Corporation was founded in 2000 and is headquartered in Shanghai, the People?s Republic of China.

Advisors' Opinion:

• [By Corinne Gretler]

  Nestle decreased 2.6 percent to 63 francs, contributing the most to the SMI (SMI)�� drop. Revenue in the first half increased 4.1 percent, excluding acquisitions, divestments and currency shifts. That missed the median estimate of 4.5 percent growth.

Top Tech Stocks To Invest In Right Now: Veeco Instruments Inc.(VECO)

Veeco Instruments Inc., together with its subsidiaries, designs, manufactures, and markets various equipments to make light emitting diodes (LEDs) and hard-disk drives worldwide. The company?s LED and Solar segment designs and manufactures metal organic chemical vapor deposition and molecular beam epitaxy systems and components for the manufacturers of LEDs, wireless devices, power semiconductors, and concentrator photovoltaics, as well as to research and development applications. Its Data Storage segment designs and manufactures various technologies, including ion beam etch, ion beam deposition, diamond-like carbon, physical vapor deposition, chemical vapor deposition, and slicing, dicing, and lapping systems to create thin film magnetic heads that read and write data on hard disk drives. The company was founded in 1945 and is headquartered in Plainview, New York.

Advisors' Opinion:

• [By Brian Pacampara]

  What: Shares of LED equipment maker Veeco Instruments (NASDAQ: VECO  ) soared 17% today after its first-quarter bookings and business update impressed�Wall Street. �

Best Value Companies For 2014: Hewlett-Packard Company(HPQ)

Hewlett-Packard Company and its subsidiaries provide products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Its Personal Systems Group segment offers commercial personal computers (PCs), consumer PCs, workstations, calculators and other related accessories, and software and services for the commercial and consumer markets. The company?s Services segment provides consulting, outsourcing, and technology services to infrastructure, applications, and business process domains. Its Imaging and Printing Group segment provides consumer and commercial printer hardware, supplies, media, and scanning devices, such as inkjet and Web solutions, laser jet and enterprise solutions, managed enterprise solutions, graphics solutions, and printer supplies. The company?s Enterprise Servers, Storage, and Networking segment offers industry standard s ervers, business critical systems, storage platforms, and networking products, including switches, routers, wireless LAN, and TippingPoint network security products. Its HP Software segment provides enterprise IT management software, information management solutions, and security intelligence/risk management solutions. The company?s HP Financial Services segment offers leasing, financing, utility programs, and asset recovery services; and financial asset management services for enterprise customers, as well as specialized financial services to SMBs, and educational and governmental entities. Hewlett-Packard Company also provides business intelligence solutions that enable businesses to standardize on consistent data management schemes, connect and share data across the enterprise, and apply analytics, as well as licenses its specific technology to third parties. The company was founded in 1939 and is headquartered in Palo Alto, California.

Advisors' Opinion:

• [By Dan Carroll]

  Finally, Hewlett-Packard is (NYSE: HPQ  ) up 0.9% ahead of its quarterly earnings release, due after the closing bell today. Some have expressed optimism about HP's turnaround strategy, particularly as the company looks to diversify away from PC sales into mobile and other more profitable industries. However, personal computers remain a sizable portion of HP's business, and with PC shipments having fallen nearly 14% in the first quarter, don't expect HP's troubles to be over so soon. This stock may be up 70% over the past six months, but until HP's turnaround is complete, expect more challenges to arise.

• [By Holly LaFon]

  Hewlett Packard (HPQ) We purchased a small position in Hewlett Packard (HPQ) as part of a tech basket in 2011. Although the tech basket performed reasonably well, HPQ was a mistake ��not just because we have lost money thus far, but also because we allowed rationalization to creep into our process. We established a small, toehold position at an average price just over $40, believing that the P/E was just 8x, that the printing business was an annuity, and that the services business had sustainable cash flow at current (or better) levels. Subsequent research revealed that neither business was as resilient as we thought. Instead of selling our stake at that time, though, we argued that the stock price remained cheap enough to stay in the basket. We were wrong. HPQ management made a series of reckless decisions, including a multi-billion dilutive acquisition; a publicly announced commitment to WebOS that was retracted within a month; and declaring their intention to sell their PC business without having a buyer lined up (leaving customers to worry about who would stand behind the products in the future, and undermining sales efforts aimed at IT departments).

• [By Dan Caplinger]

  Still, the bigger question for Adobe is whether it can keep up its quality in web-content management despite rising levels of competition. Industry analyst Forrester highlighted Adobe's platform as having broad application, but it also noted the efforts that Oracle, Hewlett-Packard (NYSE: HPQ  ) , and IBM (NYSE: IBM  ) have made in trying to make their digital experiences more appealing. In particular, HP has hinged its turnaround on moving away from commoditized businesses like PCs toward higher-margin software and services, hoping to use its extensive customer base to cross-sell services. Yet both IBM and Oracle have also been moving in the same direction, with IBM particularly having improved its web-content management offerings in order to broaden their appeal not just to the largest corporate customers but also to mid-sized companies as part of IBM's overall goal of building a broader customer base.

Top Tech Stocks To Invest In Right Now: Organovo Holdings Inc (ONVO)

Organovo Holdings, Inc. (Organovo), formerly Real Estate Restoration & Rental, Inc., incorporated in 2007, is a development-stage company. The Company has developed and is commercializing a platform technology for the generation of three-dimensional (3D) human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. On December 28, 2011, Real Estate Restoration and Rental, Inc.�� (RERR) entered into an Agreement and Plan of Merger, pursuant to which RERR merged with its, wholly owned subsidiary, Organovo (Merger Sub). On February 8, 2012, the Company merged with and into Organovo Acquisition Corp. (Acquisition Corp.), a wholly owned subsidiary of Organovo, with the Company surviving the merger as a wholly owned subsidiary of Organovo Holdings (the Merger). As a result of the Merger, Organovo acquired the business of Organovo, Inc.

The Company has collaborative research agreements with Pfizer, Inc. (Pfizer) and United Therapeutic Corporation (Unither). As of March 31, 2012, it has five federal grants, including Small Business Innovation Research grants and developed the NovoGen MMX Bioprinter (its first-generation 3D bioprinter). The Company is engaged in the development of specific 3D human tissues to aid Pfizer in discovery of therapies in two areas of interest. In addition, in October 2011, it entered into a research agreement with Unither to establish and conduct a research program to discover treatments for pulmonary hypertension using its NovoGen MMX Bioprinter technology. Additionally, under the research agreement with Unither, the Company granted Unither an option to acquire from the Company a worldwide, royalty-bearing license in certain intellectual property created under the research agreement solely for use in the treatment or prevention of pulmonary hypertension and all other lung diseases.

The Company�� NovoGen MMX Bioprinter is an automate! d device that enables the fabrication of three-dimensional (3D) living tissues comprised of mammalian cells. A custom graphic user interface (GUI) facilitates the 3D design and execution of scripts that direct precision movement of the dispensing heads to deposit cellular building blocks (bio-ink) or supporting hydrogel. The Company is using a third party manufacturer, Invetech Pty., of Melbourne, Australia, to manufacture its NovoGen MMX Bioprinter. Its bioprinting technology and surrounding intellectual property and commercial rights serve as a platform for product generation across multiple markets that employ cell- and tissue-based products and services.

The Company competes with Organogenesis, Advanced BioHealing, Tengion, Genzyme, HumaCyte and Cytograft Tissue Engineering.

Advisors' Opinion:

• [By Rick Munarriz]

  Organovo Holdings (NYSEMKT: ONVO  ) was one of last week's biggest winners, soaring 55% after making the leap to the more prolific NYSE MKT exchange.

• [By Steve Symington]

  To answer that question, remember what our fellow Fool Isaac Pino reminded us a few weeks ago:�high-end production 3-D printers from companies like 3D Systems, Stratasys (NASDAQ: SSYS  ) , and ExOne (NASDAQ: XONE  ) are capable of using dozens of materials to print infinitely more complicated items including shoes, saws, guitar bodies, and other functioning tools with moving parts.�Heck, 3-D bioprinting specialist�Organovo (NYSEMKT: ONVO  ) is currently working feverishly on perfecting the process of designing and creating functional human tissue which -- putting inevitable regulatory hurdles for using the technology aside -- could obviously change the health care world as we know it.

Top Tech Stocks To Invest In Right Now: SK Telecom Corporation Ltd.(SKM)

SK Telecom Co., Ltd. provides wireless telecommunications services using code division multiple access (CDMA) and wide-band CDMA technologies. It offers cellular voice services, such as wireless voice transmission services; and wireless global roaming services. The company also provides wireless data transmission services, such as wireless Internet access services, which allow subscribers to access online digital contents and services, as well as to send and receive text and multimedia messages. In addition, it offers broadband Internet and fixed-line telephone services, such as video-on-demand and IP TV services; and local, domestic, and international long-distance fixed-line telephone services to residential and commercial subscribers. Further, the company provides wireless entertainment-related contents and services, wireless finance-related contents and m-commerce services, and wireless news and search services; and international calling services, such as direct-dial, pre and post paid card calling services, bundled services for corporate customers, voice services using Internet protocol, Web-to-phone services, and data services. Additionally, it offers satellite digital media broadcasting services; telematics services; and fixed-line and online community portal services. The company also operates 11th Street, an online shopping mall; and T Store, an online open marketplace for mobile applications. As of March 31, 2011, SK Telecom Co. had 26 million wireless subscribers. It has strategic alliances with Bridge Alliance; Orange SA; Telecom Italia Mobile S.p.A.; T-Mobile International AG & Co; and Teliasonera Mobile Networks AB. The company was formerly known as Korea Mobile Telecommunications Co., Ltd. and changed its name to SK Telecom Co., Ltd. in March 1997. SK Telecom Co., Ltd. was founded in 1984 and is based in Seoul, South Korea.

Advisors' Opinion:

• [By Chris Neiger]

  SK Telecom (NYSE: SKM  ) launched the world's first 4G LTE-Advanced network in South Korea today, providing the fastest available data speeds for the same price as 4G LTE.�

Top Tech Stocks To Invest In Right Now: Spansion Inc(CODE)

Codere, S.A. engages in the management of gaming machines, bingo halls, horse racing tracks, casinos, and off-track betting facilities in Argentina, Brazil, Colombia, Italy, Mexico, Spain, Panama, and Uruguay. As of December 31, 2008, the company managed 54,818 slot machines and electronic bingo terminals, 137 bingo halls with 30,803 seats, 106 off-track betting facilities, 3 horse racing tracks, and 6 casinos. It also operated 15,963 AWP machines in approximately 10,886 bars and restaurants in Spain. Codere, S.A. was founded in 1980 and is headquartered in Alcobendas, Spain.

Advisors' Opinion:

• [By Tim Brugger]

  Based on a review of "preliminary financial results," embedded systems solutions provider Spansion (NYSE: CODE  ) has lowered its second quarter 2013 revenue and earnings guidance, the company announced today.

• [By Seth Jayson]

  Spansion (NYSE: CODE  ) reported earnings on April 30. Here are the numbers you need to know.

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

• [By Jon C. Ogg]

  Micron Technology Inc. (NASDAQ: MU) was up over 4% at $14.59 and hit a new multiyear high of $15.27 earlier on Wednesday. SanDisk Corp. (NASDAQ: SNDK) is up right at 3% at $56.95 against a 52-week range of $38.47 to $63.97. Jefferies also reiterated its Buy rating and $21 price target for Micron. We are seeing similar gains in Spansion Inc. (NYSE: CODE), up 2.3% at $10.69, but we would warn that its 52-week range is $9.96 to $14.54. Wells Fargo initiated coverage with an Outperform rating and a $12 to $14 valuation.

Top Tech Stocks To Invest In Right Now: Cogent Communications Group Inc.(CCOI)

Cogent Communications Group, Inc. provides high-speed Internet access, Internet Protocol, and communications services primarily to small and medium-sized businesses, communications service providers, and other bandwidth-intensive organizations in North America, Europe, and Japan. It offers on-net services to bandwidth-intensive users, such as universities, other Internet service providers, telephone companies, cable television companies, and commercial content providers; and multi-tenant office buildings, including law firms, financial services firms, advertising and marketing firms, and other professional services businesses. The company also provides its on-net services in carrier-neutral colocation facilities, Cogent controlled data centers, and single-tenant office buildings. In addition, it offers off-net services to businesses that are connected to its network primarily by means of last mile access service lines obtained from other carriers primarily in the form of p oint-to-point TDM, POS, SDH, and/or carrier ethernet circuits. Further, the company provides voice services; and Internet connectivity to customers that are not located in buildings directly connected to the company?s network. Additionally, it operates 43 data centers that allow customers to co-locate their equipment and access its network. Cogent Communications Group, Inc. was founded in 1999 and is headquartered in Washington, D.C.

Advisors' Opinion:

• [By Lee Jackson]

  Cogent Communications Group Inc. (NASDAQ: CCOI) provides high-speed Internet access, Internet protocol (IP) and communications services, primarily to small and medium-sized businesses, communications service providers and other bandwidth-intensive organizations in North America, Europe and Japan. The consensus price target for the stock is $35. Investors receive a 1.7% dividend. Cogent closed Thursday at $32.12.

Top Tech Stocks To Invest In Right Now: Volterra Semiconductor Corporation(VLTR)

Volterra Semiconductor Corporation engages in the design, development, and marketing of analog and mixed-signal power management semiconductors for computing, storage, networking, and consumer markets. The company?s products include integrated voltage regulator semiconductors, integrated power protection and distribution semiconductors, and scalable voltage regulator semiconductor chipsets that transform, regulate, deliver, and monitor the power consumed by digital semiconductors. Its analog and mixed signal power management semiconductor products are primarily used in applications that require voltage regulating performance, such as data networking equipment, desktop and notebook computers, digital televisions, digital video recorders, game consoles, enterprise storage equipment, graphics cards, hard disk drives, printers, raid cards, servers, telecommunications equipment, base stations, and workstations. The company sells its products primarily to original equipment man ufacturers, original design manufacturers, contract equipment manufacturers, and merchant power supply manufacturers directly through its internal sales force, as well as indirectly through distributors and outsourced suppliers. It has operations in the United States, China, Singapore, Japan, Taiwan, and Germany. Volterra Semiconductor Corporation was founded in 1996 and is based in Fremont, California.

Finally, Someone Else Says Housing Market Rebound Suspicious

 

By Moe Zulfiqar

It’s as bad as expected, or should I say so far so good? I have been critical about the housing market in the U.S. economy for some time now; I don’t buy the blind optimism that is heard in the mainstream these days, which states the housing market will continue to increase at the rate we have seen in 2012. I stand in the camp that says we are not going to see a crash like the one we saw not too long ago, but at the same time, the increase in the U.S. housing market won’t be as exuberant as we witnessed last year—in fact, we might even see a correction going forward.

It’s not just me saying this; Fitch Ratings also agrees with this notion. According to its U.S. RMBS Sustainable Home Price and Economic Risk Factor Report, home prices in the U.S. housing market are overvalued by 17% as per Fitch’s Sustainable Home Prices (SHP) model. The rating agency said that the U.S. housing market has increased 20% year-over-year; this is the highest growth rate in any time in the last 10 years. (Source: “Fitch: Several U.S. Cities Nearing Bubble-Year Home Price Peaks,” Fitch Ratings web site, November 6, 2013.)

Here’s why the housing market looks to be facing hardships going forward.

The U.S. economy is still in trouble, as the financial crisis has left deep wounds that haven’t healed. If someone doesn’t have enough income to pay for their expenses and they’re relying heavily on government assistance, such as food stamps, would they actively look to buy a home? I don’t think it would be their first priority.

In addition to this, the mortgage rates have increased substantially since May of this year. This is all thanks to the quantitative easing taper speculation. What it has done is send those who were thinking of entering the housing market away. When the mortgage rates increase, it makes it more expensive for an individual to own a house. For example, According to the National Association of Realtors, 28% of all existing home sales in the U.S. housing market in September were from first-time home buyers. Compared to last year, this number has declined 12.5% from the same period a year ago. (Source: “Existing-Home Sales Down in September but Prices Rise,” National Association of Realtors web site, October 21, 2013.)

Worst of all, the U.S. housing market saw an influx of investors coming in and buying homes in bulk with cash. We have seen this in the past, when companies like Blackrock, Inc. (NYSE: BLK) purchased a significant amount of residential properties for the sole purpose of renovating and renting them out.

With all this in mind; one must wonder what happens to the homebuilder stocks, since they are closely related to the housing market.

Truth be told, if the housing market in the U.S. economy faces hurdles, the homebuilder stocks will face a precarious future ahead. If investors are heavily invested in them, this may be the time to think and reflect on what’s happening in the U.S. housing market. If they insist on keeping those stocks, then they should consider taking some profits off the table.

This article Finally, Someone Else Says Housing Market Rebound Suspicious was originally published at Daily Gains Letter

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Economics Markets Trading Ideas

  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 Earnings Expectations For The Week Of November 11: Walmart And Other Retailers Three iPhone Rumors from the Weekend SLIDESHOW: Larger iPad, iPad Mini Delay And More From The First Week Of November Benzinga's Top #PreMarket Losers The Twitter Week in Review UPDATE: Zalicus Reports Results from Phase 2 Clinical Trials of Z160 in Chronic Neuropathic Pain Related Articles (BLK) Finally, Someone Else Says Housing Market Rebound Suspicious Anything a Bond Can Do, These Stocks Can Do Much, Much Better BlackRock CEO Reports QE Causing Bubbles in Markets ETF Outlook for Friday October 25, 2013 Splurge-Worthy Stocks For Your Portfolio UPDATE: BlackRock Q3 Profit Surges 14% View the discussion thread. Partner Network #marketfy-ae-block { display: none; border: 2px solid #0a3f75; overflow: hidden; width: 300px; height: 125px; text-align: center; background-color: #45719E; position: relative; z-index: 1; } #marketfy-ae-block a { display: block; width: 300px; height: 125px; position: relative; z-index: 2; color: #ffffff; text-decoration: none; } #marketfy-ae-block-countdown-text { color: #f9fc99; padding: 0px 0 0 0; font-size: 19px; font-weight: bold; line-height: 19px; } #marketfy-ae-block-countdown-text-start { font-size: 12px; } #marketfy-ae-block-countdown { padding: 5px 0 5px 0; font-size: 26px; } #marketfy-ae-block-signup { padding: 5px 47px; } #marketfy-ae-block-signup:hover { background-color: #457a1a; } #marketfy-ae-block #marketfy-ae-block-logo { display: block; padding: 3px 0 0 0; margin: 0; } #marketfy-ae-block-logo { text-indent: -9999px; } #marketfy-ae-block-free { display: block; position: absolute; top: 7px; right: -23px; width: 80px; height: 16px; line-height: 16px; text-align: center; opacity: 1; -webkit-transform: rotate(45deg); -moz-transform: rotate(45deg); -ms-transform: rotate(45deg); transform: rotate(45deg); font-size: 13px; font-weight: normal; color: #333333; background-color: yellow; z-index: 500; text-shadow: 1px 1px #999999; } #marketfy-ae-block-arrow { position: relative; width: 60px; height: 60px; z-index: 10; margin: -80px 0 13px -21px; } #marketfy-ae-block-arrow img { height: 60px; width: auto; } Marketfy's International
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Here We Go Again! U.S. Will Hit Debt Ceiling in October

Hector Casanova, The Kansas City Star, via Getty Images Treasury Secretary Jack Lew said in a letter to Congressional leaders on Monday that the nation will hit its borrowing limit in mid-October, giving Congress a clear deadline for raising the debt ceiling. The new timeline will ramp up pressure on Congress to raise the debt ceiling, as it comes somewhat sooner than most analysts had anticipated. The new deadline will come just a handful of weeks after lawmakers have to pass a continuing-resolution bill that will keep the government funded past Sept. 30. Lew sent the letter to House Speaker John Boehner, House Minority Leader Nancy Pelosi, Senate Minority Leader Mitch McConnell, and Senate Majority Leader Harry Reid. In it, Lew warned of "irreparable harm to the American economy if Congress does not act." Meanwhile, White House Press Secretary Jay Carney repeated a familiar line on Monday -- that President Barack Obama won't negotiate over raising the debt ceiling. In exchange for a hike in the debt ceiling, some Republicans are demanding new, significant spending cuts -- and some want to delay or defund parts of the Affordable Care Act.