SK3 Group is Off and Running for the Right Reason (CERN, GTIV, SKTO)

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

Don't sweat it if you've never heard of SK3 Group. Most investors probably haven't, primarily because the company wasn't doing anything (almost literally) until the first quarter of this year. That's when SKTO posted its first revenue in years, on the heels of more open-minded laws regarding the usage of what the company describes as "alternative care and medicine"... which is the politically correct way of saying "medical marijuana". The company acquired another company called Medical Greens, and within a week had booked more than $30 million worth of management and logistics service contracts. By the end of Q1, SK3 Group Inc. had generated sales of $4.7 million, and logged a top line of $13.43 million for the second quarter of this year.

It would be wrong to lump SK3 Group Inc. into the same group most cannabis, hemp, and marijuana stocks fall into however. Indeed, it was no joke to suggest a comparison to Cerner Corporation and/or Gentiva Health Services; SKTO is run and presented as a company that could stand shoulder to shoulder with that IT company and home health company, respectively.

How so? For starters, SK3 Group has paired its effective launch several months ago with a well-polished publicity effort. An IR firm as well as an auditing firm has been announced, and the company has deliberately sought to build/acquire a cannabis science team, complete with licensed CBD-extraction technology and a dosing-tablet format that sidesteps the high that is often achieved (yet rarely wanted) by cannabinoid users.

In other words, SK3 Group Inc. isn't treating this business like a backyard-hobby. It's treating it like any other medical technology or medical logistics organization, and the results are already showing.

Be that as it may, of most interest to investors right now is the fact that SKTO shares are now embedded in a very trade-worthy uptrend that fell into place earlier in the month.

The chart below tells the tale. Shares were in a decided downtrend through October 9th. On October 10th, the selling stopped and the buying began, and nobody ever looked back. Since then - and only after the second effort - the stock's fought its way above the key 200-day moving average line (green), confirming that this is a bigger-picture effort underway. We've seen a couple high-volume 'up' days in the meantime too, telling us there's plenty of interest and participation in this rally. It's the clear breakout from the downtrend and entry into a new bullish channel telling us all we need to know here, however. That, coupled with the fact that SK3 Group Inc. has a lot of plausible growth in its future, says today's lull is a perfect time to step into a position.

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Don't Be Duped By High Dividend Yields, Growth Matters

For many investors, in fact, it's hard to remember anything positive that has come out of the nation's capital in recent months, but something very positive for the investor community has happened, and it actually wasn't too long ago.

Had the so-called Bush tax cuts been allowed to expire at the end of last year, qualified dividends would have been subject to ordinary income tax rates, which for high earners is currently 39.6%. In a rare show of bi-partisanship, both sides came together and hammered out a deal that essentially capped qualified dividend taxes at 20% and made such tax rates a permanent part of the tax code.

Unlike so many of the budget and tax battles that consume Washington today on a recurring basis, the issue of dividend tax rates has largely been decided: They are simple and transparent and there are no expiration dates or sunset provisions attached.

While this has positioned dividend-yielding stocks as a very attractive option for investors, not every dividend-paying stock is created equal. With interest rate hikes possible in the near future due to the Fed potentially paring back its bond purchases, yield is increasingly taking a backseat to growth potential.

Consider utilities, which historically pay high dividends. In a rising interest rate environment, utility stocks tend to behave much like bonds, as prices drop and competition from Treasuries picks up. There is also the reality that many dividend-paying companies are already maxed out. In the face of declining cash flows, such companies will be unable or unwilling to increase dividends.

Rather than plowing headlong into dividend-paying stocks that have little prospect of increasing their payouts, investors should focus on companies with lower dividend yields but longer runways for growth. Such companies typically have low debt levels and significant pricing power, allowing them to pass any additional expenses to the end customer.

The following are four companies that are set to grow their dividends more than the S&P average and remain attractive in a rising interest rate environment:

Digital Realty Trust (DLR) – Digital Realty is real estate investment trust that invests in properties that house data and tech professional service companies. It has 127 holdings in 32 markets across the world, but most of its properties are located in the United States. The dividend yield is 5.5%, which has steadily increased at a compounded annualized rate of 21% over the last ten years, nearly triple the rate of the S&P 500. The good news is that Digital Realty is likely to grow its dividend even more as global demand for "anywhere access" data increases.

Equity Residential Equity Residential (EQR) –  Also a REIT, Equity is placing an heavy emphasis on apartment complexes located on both coasts, where rents tend to be higher and turnover is generally lower than the national averages. Following its acquisition of Archstone late last year, the company is now poised to sell $8 billion in properties. Equity pays three even quarterly dividends, plus a special year-end dividend, totaling a 3.6% yield over the last year. Its dividend growth rate has accelerated to 25% on a trailing 12-month basis.

Wells Fargo Wells Fargo & Co. (WFC) – The bank currently pays out a dividend that yields 2.8%, which is only 30% of its net income. Don't expect income to rise beyond the S&P average in coming years, as the company is not positioned to make any major acquisitions in the near future. Although Wells Fargo cut its dividend dramatically in 2009 (like most financials), there is a good chance there will be annual dividend increases of at least 20% over the intermediate term.

Special Offer: Click here for a 30-day free trial of Forbes Dividend Investor.

On the opposite end of the spectrum, there will be companies that will suffer greatly in the event of an interest rate spike, which would increase borrowing costs and imperil capital intensive, low-growth industries that are typically highly leveraged. Based on that, the following are two equities to avoid:

Exelon Exelon Corp. (EXC) – Exelon is the largest owner and operator of nuclear reactors in the U.S. While it currently offers a 4.3% dividend yield, it cut its dividend in early 2012 and again in spring 2013. Weak pricing power has cut into the company's cash flow, which is down nearly 90% over the past year. With limited opportunities to reinvest in the business, Exelon's payout, which is already high as a ratio of net income, is very unlikely to increase.

American Electric American Electric Power (AEP) – American Electric Power is yet another utility that is experiencing declining cash flows. While its stock yields 4.4%, its dividend has grown at a disappointing annualized rate of 1.6% over the past 10 years. And like Exelon, it also has limited opportunities to reinvest in the business, and its payout ratio is similarly high.

The long and the short of it? When it comes to dividends, growth is becoming king. Investors who have always focused on yield need to realize that while size of the dividend matters, there's much more to the equation with respect to building long term value.

Ben Marks is president and chief investment officer of Marks Group Wealth Management, a Minneapolis based independent registered investment advisory with approximately $500 million in assets under management. Marks Group owns certain aforementioned stocks on behalf of clients.

Profiting From the Battle for the Future of Television: Part 2

As more and more people are cutting the cord when it comes to home entertainment, competition in the industry has never been more intense. Broadcast gave way to cable before satellite became an option, and now technology is driving the fight and offering an increasing number of choices. Four identifiable segments are beginning to emerge: cable and satellite, streaming video, TV enhancement, and advanced options.

In Part 1 of this series, I examined the traditional players -- including cable and satellite providers, as well as communications companies that have begun to get into the game. Today, I'll examine the various streaming video options. There is some overlap in certain cases, but by understanding each segment individually, you'll get a clearer picture of the overall industry.

The streaming video players
Netflix (NASDAQ: NFLX  ) : As the first mover in streaming video, Netflix has a clear advantage over its competitors. Netflix stock has taken investors on a roller-coaster ride over the past few years. In 2011, shares were trading just below $300 when the company announced the massive price increase and the bifurcation of the DVD business. Netflix stock became a case study in how to kill the golden goose, seeing the stock drop to just over $60 last fall. The stock is now knocking on $250 again.

As a first mover, Netflix has the ability to not only continue build a significant subscriber base but also to forge critical strategic partnerships and iron out glitches. Recently, Netflix announced user profiles that will allow as many as five users per account to customize recommendations and preferences. The company is working toward constantly improving the user experience.

What CEO Reed Hastings is really doing right, and another reason Netflix is strongly positioned among streaming video competitors, is producing original content. In the entertainment business, content is king. While some critics have observed that Netflix has had mixed success with its original shows, it's moving in the right direction. Furthermore, the move by Hastings indicates that the CEO understands the importance of content in the long-term success of streaming video.

Amazon.com (NASDAQ: AMZN  ) : Amazon Prime is currently the most significant competitor to Netflix in the streaming space, and this year saw the fight intensify. Not only did Amazon aggressively go after some of the licensing deals that had once belonged to Netflix -- remember, Amazon has a significantly larger balance sheet to play with -- but it has also ramped up its own original production effort. Amazon recently announced that it's putting six more pilots into production, most with a focus on kids' programming -- including a pilot aimed at 6- to 11-year-olds and a first-ever live action show.

According to a recent study from NPD Group, Amazon has made real inroads: In the first quarter of 2012, Netflix had 76% of single-subscription households; that number fell to 67% in the first quarter of 2013. The study also found that 10% of households now have subscriptions to both Netflix and Amazon Prime. Furthermore, Amazon has added 11,000 titles in 2013 to bring its library to roughly 41,000 titles.

One of the advantages for Amazon, and its customers, is that the $79-per-year membership gives you free two-day shipping on most Amazon products. This means that Amazon can appeal to consumers for reasons beyond home entertainment. When mixed with the depth of its wallet, Amazon is well positioned to push Netflix.

Redbox Instant: This joint venture between Outerwall (NASDAQ: OUTR  ) and Verizon (NYSE: VZ  ) is the newest addition to the streaming video battle. The new service gives you access to a distinct number of rentals at Redbox kiosks plus access to the 5,000 titles currently available. CEO Scott Di Valerio explains that where Redbox is the outer wall of old video stores (where new releases were displayed), the streaming service fills in the center of the store (older titles). While the service is in its infancy, one angle that could be a game-changer for Redbox Instant is mobile. With Verizon as a JV partner, you can imagine that Redbox Instant could be the first streaming video player to truly make the jump to mobile. Netflix, for example, is available on most mobile devices, but the data usage is significant. If Verizon chooses to offer Redbox Instant to its wireless customers, while giving them a break on data, this could change the landscape.

But how do you profit?
All three of these options offer a solid investment outlook and could be worth owning -- each for different reasons. Netflix is ahead of the pack, although the stock seems like it's getting pricey at current levels. Longer-term, however, it's adding subscribers, and that's the key. Amazon has the balance sheet to "steal" content from its competitors, so watching key licensing battles will be critical. Redbox Instant is still early in the game, but the Verizon angle has potential. Until a clear winner emerges, a balanced allocation to all three options is the most conservative approach. Long term, it will be key to watch the content issue to determine whether streaming video profits can hold up.

Please look soon for the next parts of this series that will focus on the other two segments, and then consider the industry as a whole.

As the battle for the future of television continues, you should learn all you can about each of the companies involved and how each differentiates itself. Beyond following this series, you may want to check out The Motley Fool's shocking video presentation that reveals the secret Steve Jobs took to his grave and explains why the only real winners are these three lesser-known power players that film your favorite shows. Click here to watch today!

Top Penny Stocks To Buy Right Now

Shares of Sealed Air Corporation (SEE) hit a new 52-week high of $27.65 on Jul 12, surpassing its previous high of $27.27. The company has delivered a robust one-year return of about 84.4% and year-to-date return of 58.9%, outperforming the S&P 500.

The Elmwood Park, NJ-based specialty packaging service provider has long-term estimated earnings per share growth rate of 12.9%. Average volume of shares traded over the last three months is approximately 1913K.

What�� Driving Sealed Air Up?

Sealed Air reported first-quarter 2013 adjusted net earnings from continuing operations of 17 cents per share, up 6% from the year-ago earnings of 16 cents per share but a penny short of the Zacks Consensus Estimate.

Although earnings missed estimates, Sealed Air declared an improved outlook for full year 2013. The company expects adjusted earnings in the range of $1.10 to $1.20 per share on net sales of $7.7��7.9 billion. Furthermore, adjusted EBITDA is expected in the range of $1.01��1.03 billion.

Top Penny Stocks To Buy Right Now: China Yida Holding Co.(CNYD)

China Yida Holding, Co. operates as a diversified entertainment company in the People?s Republic of China. The company operates in two segments, Advertisement and Tourism. Its Advertisement segment operates and manages the Fujian Education Television Channel, a television channel in Fujian; and an outdoor on-train programming, including the Journey through China on the Train programming on China?s railway networks. This segment manages the content and re-sells airtime to advertisers and agencies for the television channel, and produces the content for outdoor on-train programming. The Tourism segment develops, operates, manages, and markets tourist destinations comprising natural, cultural, and historical tourist destinations and theme parks. This segment also creates/designs and constructs tourist concepts, attractions, and properties for its tourist destinations. This segment operates the Great Golden Lake tourist destination, Yunding Recreational Park tourist destinatio n, and Hua?An Tulou cluster tourist destination. The company is headquartered in Fuzhou City, the People's Republic of China.

Top Penny Stocks To Buy Right Now: Full House Resorts Inc.(FLL)

Full House Resorts, Inc., together with its subsidiaries, develops, manages, invests in, and owns gaming-related enterprises. The company holds interest in Gaming Entertainment (Delaware), LLC, a joint venture with Harrington Raceway, Inc., which has a management contract with Harrington Raceway and Casino that has approximately 1,800 slot machines and 40 table games, a 450-seat buffet, a dining restaurant, a 50-seat diner, and an entertainment lounge area located in Harrington, Delaware. It also owns and operates Stockman?s Casino, which has approximately 264 slot machines, 4 table games, and keno, as well as a bar, a dining restaurant, and a coffee shop situated in Fallon, Nevada. In addition, the company holds interests in Gaming Entertainment Michigan, LLC that has a joint venture with RAM Entertainment, LLC, which has a management agreement with the Nottawaseppi Huron Band of Potawatomi Indians for the development and management of the FireKeepers Casino in Battle Cre ek, Michigan. Full House Resorts, Inc. was founded in 1987 and is based in Las Vegas, Nevada.

Hot Financial Stocks To Own For 2014: Kohlberg Capital Corporation(KCAP)

Kohlberg Capital Corporation is a private equity and venture capital firm specializing in buyouts and mezzanine investments. It focuses on mature and middle market companies. The firm structures its investments through senior debt, second lien debt, secured and unsecured subordinated debt, mezzanine debt, and equity. It invests in all sectors except cyclical industries. The firm invests equity in both minority and control transactions alongside other equity investors. It invests through its own balance sheet. Kohlberg Capital Corporation is based in the New York, New York.

Top Penny Stocks To Buy Right Now: Central Federal Corporation(CFBK)

Central Federal Corporation operates as the holding company for CFBank that provides various financial services. It accepts various deposit products that include savings accounts, retail and business checking accounts, money market accounts, and certificates of deposit. The company?s loan portfolio comprises commercial, commercial real estate, and multi-family mortgage loans; single-family real estate loans; construction, land, and land development loans; and consumer loans, including home equity lines of credit, automobile loans, home improvement loans, and loans secured by deposits. It also provides online Internet banking, mobile banking, remote deposit, corporate cash management, and telephone banking services. Central Federal Corporation operates through four branch offices located in Summit, Columbiana, and Franklin Counties, Ohio. The company was formerly known as Grand Central Financial Corp. The company was founded in 1892 and is headquartered in Fairlawn, Ohio.< /p>

Top Penny Stocks To Buy Right Now: CSP Inc.(CSPI)

CSP Inc. engages in the development and marketing of information technology (IT) integration solutions and high-performance cluster computer systems to industrial, commercial, and defense customers worldwide. The company operates in two segments: Systems, and Service and System Integration. The Systems segment designs and manufactures specialty, high-performance computer signal processing systems for the aerospace and defense markets. These systems are used on land, and in airborne and shipboard platforms for high-speed digital signal processing in radar, sonar, and surveillance applications. The Service and System Integration segment consists of the computer maintenance and integration services, and third-party computer hardware and software value added reseller businesses. It also provides professional IT consulting services, including maintenance and technical support; implementation, integration, configuration, and installation services; enterprise security intrusion p revention, network access control, and unified threat management services; IT security compliance services; custom software applications and solutions development and support; and monitoring, reporting, and management of alerts for the resolution and preventive general IT and IT security support tasks. This segment offers its solutions and services for IT environments, including storage and servers, unified communications solutions, IT security solutions, and consulting services. The company markets its products and services through direct sales force, distributors, and resellers. CSP Inc. was founded in 1968 and is headquartered in Billerica, Massachusetts.

Top Penny Stocks To Buy Right Now: Empresas Ica Soc Contrladora (ICA)

Empresas ICA, S.A.B. de C.V., through its subsidiaries, engages in the construction and related activities in Mexico. The company?s Civil Construction segment focuses on infrastructure projects that include the construction of roads, highways, mass transit systems, bridges, dams, hydroelectric plants, tunnels, canals, and airports; and on the construction, development, and remodeling of multi-storied urban buildings, such as office buildings, hotels, multiple-dwelling housing developments, and shopping centers. This segment also engages in demolition, clearing, excavation, de-watering, drainage, embankment fill, structural concrete construction, concrete and asphalt paving, and tunneling activities. Its Industrial Construction segment focuses on the engineering, procurement, construction, design, and commissioning of manufacturing facilities comprising power plants, chemical plants, petrochemical plants, fertilizer plants, pharmaceutical plants, steel mills, paper mills, d rilling platforms, and automobile and cement factories. Empresas ICA?s Rodio Kronsa segment engages in sub-soil construction involving the construction of tunnels, underpasses, and retaining walls. The company?s Housing Development segment engages in the development, trading, ownership, sale, assistance, operation, and administration activities. Its Infrastructure segment involves in the operation and maintenance of concessioned airports, highways, bridges and tunnels, water supply systems, and waste treatment systems. The company also provides a range of services that include feasibility studies, conceptual design, engineering, procurement, project and construction management, construction, maintenance, technical site evaluation, and other consulting services. It serves public and private sector clients. Empresas ICA, S.A.B. de C.V. was founded in 1947 and is based in Mexico.

Advisors' Opinion:

• [By Michael Lewis]

  It's been said plenty of times that our neighbor to the south is home to a burgeoning, debt-light economy that offers emerging-market growth with an element of domestic risk and valuation. China is very much "last season" when it comes to manufacturing, and Mexico offers a fantastic answer, with geographical superiority and an eager work force. One company based in Mexico, Empresas ICA (NYSE: ICA  ) , is a heavy-construction firm with a market cap of $1 billion that was as recently as April worth nearly $2 billion. The causes for the haircut includes a collapsed deal and lousy first-quarter earnings. But with a strong outlook for Mexican infrastructure spending, and an apparent case of market negligence, Empresas ICA might be an undervalued pick with substantial upside potential.

Top Penny Stocks To Buy Right Now: Micron Technology Inc.(MU)

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

Advisors' Opinion:

• [By Jake L'Ecuyer]

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

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

  Micron Technology (MU) �stood out in early trades, rising 1%. A Sterne Agee report on Tuesday pointed to signs of strong demand for mobile DRAM processors, playing down worries of a slowdown.

Top Penny Stocks To Buy Right Now: Gold Reserve Inc(GRZ)

Gold Reserve Inc., an exploration stage company, engages in the acquisition, exploration, and development of mining projects. The company was founded in 1956 and is based in Spokane, Washington.

Best Clean Energy Companies To Buy For 2014

U.S. - the world�� largest consumer of energy- faced an unlikely situation quite recently. It was in April last year that the natural gas prices hit an all time low at under $2 per million British thermal credits. Many believed this to be an immutable and uncomfortable reality. Though this was only a partial reality, Shares of natural gas engine designer- Westport Innovation (WPRT) nearly doubled in four months as did clean energy fuels (CLNE), a company that builds refueling stations. The NAT GAS Act, passed by the congress, was aimed at promoting the usage of cleaner fuels. It provided subsidies to vehicles which used alternative fuels rather than going the conventional way.

The Obama administration laid stress on the fact that it would always be beneficial to use the clean fuels produced within the nation�� boundaries. To further the initiative he announced an investment of $1 billion in the gas infrastructure. All this was way back in April 2012. Now, coming to the present scenario, the gas pieces have doubled than what they originally were which now puts them at $4/mmBtu price tag. The congress is nowhere in the scene now amending bills that would encourage the use of natural gas vehicles. This had ramifications in the stock market as the stocks, as those of Westport and Clean Energy, that were peaking have now fallen down to almost half their value.

Best Clean Energy Companies To Buy For 2014: Teryl Resources Corp. (TRC.V)

Teryl Resources Corp., an exploration stage company, engages in the acquisition, exploration, and development of natural resource properties; and acquisition, drilling, and development of oil and gas properties. It primarily explores for gold ores. The company holds a 100% interest in the Westridge property that consists of 53 state mining claims covering approximately 5,200 acres located in the Dome Creek area of the Fairbanks district of Alaska; a 50% option interest in the Fish Creek property located in the Fairbanks district of Alaska; a 1% royalty interest in the Gil property in Fairbanks, Alaska; a 10% net profit interest in the Stepovich claims, near the Fort Knox deposit; and a 40% interest in a silver property located in northern British Columbia. It also has revenue interest in three producing oil and gas wells in Texas. The company was formerly known as Candy Mountain Gold Corporation and changed its name to Teryl Resources Corp. in February 1984. Teryl Resource s Corp. was incorporated in 1980 and is based in Richmond, Canada.

Best Clean Energy Companies To Buy For 2014: Cembre(CMB.MI)

Cembre S.p.A. and its subsidiaries engage in the manufacture and sale of electric compression connectors and related installation tools in Europe. Its products include electrical connectors for copper and aluminum cables; crimping and cutting tools, including mechanical, hydraulic, cordless hydraulic, hydraulic heads, die selector, and bench press tools; hydraulic pumps, hydraulic units, wire strippers, and accessories; cable accessories, such as terminal blocks, plastic and metal cable glands and accessories, and cable ties and clips; and identification and labeling products and software for railway applications. The company was founded in 1969 and is headquartered in Brescia, Italy. Cembre S.p.A. is a subsidiary of Lysne S.p.A.

Hot Gold Companies For 2014: Macatawa Bank Corporation(MCBC)

Macatawa Bank Corporation operates as the holding company for Macatawa Bank that provides various commercial and personal banking services. It offers various deposit products, which comprise checking accounts, savings accounts, time deposits, transaction accounts, savings and time certificates, non-interest bearing and interest bearing demand deposits, and money market accounts. The company?s loan portfolio comprises commercial and industrial loans, commercial real estate loans, construction and development loans, and multi-family and other non-residential real estate loans; residential mortgage loans; and consumer loans, including automobile loans, home equity lines of credit, installment loans, home improvement loans, deposit account loans, and other loans for household and personal purposes. It also provides cash management services, safe deposit boxes, travelers checks, money orders, and trust services; ATMs, Internet banking, telephone banking, and debit cards; and b rokerage services, including discount brokerage, personal financial planning, and consultation regarding mutual funds. In addition, the company offers personal trust services, such as financial planning, investment management services, trust and estate administration, and custodial services; and retirement plan services, including provision of various qualified retirement plans, such as profit sharing, 401(k)s, and pension plans. It operated a network of 26 branches and a lending and operation service facility in Kent, Ottawa, and northern Allegan counties of Michigan. The company was founded in 1997 and is headquartered in Holland, Michigan.

Best Clean Energy Companies To Buy For 2014: VALE S.A.(VALE)

Vale S.A. engages in the exploration, production, and sale of basic metals in Brazil. The company also involves in fertilizers, logistics, and steel businesses. The Bulk Material segment consist of iron ore mining and pellet production, as well as its Brazilian Northern and Southern transportation systems, including railroads, ports, and terminals. This segment also includes manganese mining and ferroalloys. The Base Metals segment produces nonferrous minerals, including nickel, copper, and aluminum consisting of aluminum trading activities, alumina refining, aluminum metal smelting, and bauxite mining. The Fertilizers segment provides potash, phosphates, and nitrogen. The Logistic Services segment consists of transportation systems, including ships, ports, and railroads for third party cargos. This segment includes 10,179 kilometers of railroad infrastructure, 8 seaport terminals, 5 general cargo ports, and 2 iron ore export terminals. In addition, it generates energy thr ough hydroelectric power plants. The company was founded in 1942 and is based in Rio de Janeiro, Brazil.

Advisors' Opinion:

• [By Roberto Pedone]

  2013 hasn't exactly been a banner year for shares of Vale (VALE) either. Since the calendar flipped to January, the Brazilian mining firm has shed more than a quarter of its market cap, a downtrend that only got broken late this summer thanks in large part to strong second-quarter numbers released last week. Vale is the largest iron ore miner in the world, with more than 300 million metric tons of the metal coming from its mines annually. Vale also produces coal and metals such as nickel and copper.

  Vale's fortunes are tied in lock-step with commodity prices: when hard commodities are skyrocketing, so too are Vale's margins. But this year, softening demand for iron has sent investors fleeing from any name with excessive commodity exposure. A low cost structure should help to diffuse the risks at play here. In general, VALE's mines produce higher-quality ore, a fact that gives the firm claim to higher selling prices and better production efficiency. That helps to offset some of the costs in shipping its metals all over the world.

  Ultimately, iron is an extremely cyclical business. But the good news is that warming economic engines around the world in 2013 should parlay into a cautious ramp-up in demand for iron ore. With rising analyst sentiment building in shares this week, we're betting on VALE.

• [By Jim Jubak]

  I like fertilizer stocks as a long-term play on the rising global demand for food-which is why this stock is a member of my long-term Jubak Picks 50 portfolio, but I'd like to see some signs that potash pricing has turned before buying. Despite its name, Potash of Saskatchewan also sells nitrogen fertilizers. Fundamentals for those fertilizers look to be bottoming, and the fourth quarter might see flat prices. I'd think about using that as an indicator for a buy. (I'd also like to see a few more delays/cancelations of mine expansions such as Mosaic's (MOS) and Vale's (VALE) recent news of a total of 6.3 million metric tons in delays.)

• [By Dan Caplinger]

  Finally, Dan shares how a recent streaming agreement for gold with Brazilian mining giant Vale (NYSE: VALE  ) provides diversification for the future.

• [By Matt Smith]

  Vale appears irresistibly cheap
  Latin America's commodities sector has been particularly punished by the market, primarily because of unpredictable economic data coming out of China. One company that now appears to be an irresistible value is the world's second largest mining company, Brazil's Vale (NYSE: VALE  ) . For the year-to-date Vale has seen its share price plunge 24% and in July it touched a new 52 week low.

Best Clean Energy Companies To Buy For 2014: Vanda Pharmaceuticals Inc.(VNDA)

Vanda Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system disorders. Its lead product includes Fanapt for the acute treatment of schizophrenia in adults. The company is also developing Tasimelteon, an orphan medicinal product for the treatment of sleep and mood disorders, including non-24 hour sleep/wake disorder in blind individuals without light perception. It also intends to initiate a Phase IIb/III clinical trial of tasimelteon in patients with major depressive disorder; and conduct additional clinical trials to support the use of tasimelteon as a circadian regulator. The company was incorporated in 2002 and is headquartered in Rockville, Maryland.

Advisors' Opinion:

• [By Roberto Pedone]

  Another biotechnology player that looks poised to trigger a big breakout trade is Vanda Pharmaceuticals (VNDA), which is focused on the development and commercialization of clinical-stage drug candidates for central nervous system disorders. This stock has been on fire so far in 2013, with shares up a whopping 258%.

  If you take a look at the chart for Vanda Pharmaceuticals, you'll notice that this stock has recently broke out above some near-term overhead resistance levels at $12.34 to $12.66 a share with solid upside volume. So far, this breakout has held and now shares of VNDA are quickly moving within range of triggering an even bigger breakout trade.

  Traders should now look for long-biased trades in VNDA if it manages to break out above its 52-week high at $13.30 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action 908,467 shares. If that breakout hits soon, then VNDA will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $17 a share.

  Traders can look to buy VNDA off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $12 a share. One could also buy VNDA off strength once it takes out $13.30 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

• [By C.R. Jackson]

  On April 18, 2013, Vanda Pharmaceuticals (VNDA) stock reached a 52-week high. Why?

  Until recently, many investors had given up on the Washington, DC-based pharmaceutical company. The reason was Fanapt (iloperidone), an atypical antipsychotic for the treatment of schizophrenia, that not only had a rocky regulatory history, but was a big dud at the sales counter.

Best Clean Energy Companies To Buy For 2014: Carolina Bank Holdings Inc.(CLBH)

Carolina Bank Holdings, Inc. operates as the holding company for Carolina Bank that provides commercial and consumer banking services to individuals and small to medium-sized businesses in the Piedmont Triad region of North Carolina. It accepts various deposit products that include personal and commercial checking accounts, savings accounts, money market accounts, certificates of deposit, and individual retirement accounts. The company?s loan portfolio comprises construction and land development loans, 1-4 family residential property loans, multifamily residential property loans, nonfarm nonresidential property loans, commercial and industrial loans, and consumer and other loans. It has four locations in Greensboro; an office in Asheboro, Burlington, High Point, and Winston-Salem; and a mortgage loan production office in Burlington. The company was founded in 1996 and is headquartered in Greensboro, North Carolina.

Australia stocks rise as commodities gain

LOS ANGELES (MarketWatch) -- Australian stocks headed higher in the Friday open, tracking overnight gains for U.S. shares and commodity futures. The S&P/ASX 200 (AU:XJO) rose 0.3% to 5,389.40, after Wall Street ended higher as a near-term tappering of the Federal Reserve's monetary stimulus looked less likely. An advance for oil futures helped lift Origin Energy Ltd. (AU:ORG) (OGFGF) up 0.9% and Oil Search Ltd. (AU:OSH) (OISHF) up 0.5%, while a 1.2% rise for Comex gold pushed Newcrest Mining Ltd. (AU:NCM) (NCMGF) 1.7% higher and sent Evolution Mining Ltd. (AU:EVN) (CAHPF) surging 2.9%. Shares of Whitehaven Coal Ltd. (AU:WHC) also added 2.9% after the firm reported record coal production. Stock in Warrnambool Cheese & Butter Factory Co. (AU:WCB) was on trading halt for the first hour of the session after the company received a fourth takeover bid.

Read the full story:
Asian shares mostly lower; techs struggle in Seoul

Trick Out Your Treats: Exotic Candies from the Asian Market

Top 10 Safest Companies To Buy For 2014

AOL

Halloween is a time for brilliance and creativity, for surprising looks and bold statements. But while fun and cleverness about in the costume and home decoration arenas, it seems like candy always gets left behind. Every year, it's the same old thing: Reese's cups and lollipops, Butterfingers and Tootsie Rolls, and that one house where they pass out candy corn. This year, while you're planning a your exciting costume, why not give your candy bowl a facelift, too? Asian grocery stores -- my favorite go-to source for creative sodas and innovative convenience foods -- are also a treasure-trove of strange and wonderful candies the kids in your neighborhood won't be seeing at every other house. As an added plus, most Asian candies don't contain high-fructose corn syrup, partially-hydrogenated oils, nor many of the other fake-food ingredients that plague American candy. Admittedly, they're a bit more expensive, but if there's one holiday that practically screams for a candy splurge, it's Halloween. Here are a few great Asian candies that were taste-tested and reviewed by members of the DailyFinance staff:

David Rolfe Interview with The Wall Street Transcript

TWST: Tell us about Wedgewood Partners and the inception of your current strategy.

Mr. Rolfe: Wedgewood Partners was founded in 1988 by our partner Tony Guerrerio — 1988 is also is the year I started our current investment strategy. In 1988, I was working as a portfolio manager at the old Boatmen's Trust Co. in Saint Louis, Missouri. I'm the architect of our strategy, and I had the fortunate opportunity to begin this strategy on full discretionary accounts at my former employer.

Starting back in 1984 while still in college, I had begun studying and researching the successful investors of the day and became quite enamored with focus investing either on both the growth side and value side. By the time 1988 rolled around, I had an opportunity to put those theories and philosophies to work. So essentially the foundational underpinnings of this strategy was the synthesis of the best tenets of growth and value investing, plus the proper temperament and behavior of a successful business owner, all through the advantaged structure of focus investing.

Then in 1992, the founding CIO that started Wedgewood with our partner Tony Guerrerio retired. So in May of 1992 I was hired as Chief Investment Officer. The strategy has been in place for 25 years, and 21 of those years have been at Wedgewood. Along the way, Dana Webb and Michael Quigley joined Tony and I to become part of our investment team in 2002 and 2005, respectively.

TWST: Tell us more about your investment philosophy and strategy, and how that translates into making investments.

Mr. Rolfe: In this big wide world of active management, there are now hundreds of active management strategies. In our view, far too many of these firms emphasize the "active" part of active versus passive investing, active trading and/or countless securities in their portfolio. We believe that the key differentiating factor of an active manager versus your peer group or the benchmark is being different — and at best, significantly d! ifferent.

Continue reading here.

Netflix shares jump as earnings quadruple

Netflix, the video streaming service provider, said Monday that its net income more than quadrupled as its membership topped 40 million worldwide.

Its net income rose 315% to $31.8 million for the quarter that ended Sept. 30. Earnings per share of 52 cents beat analysts' average estimate of 49 cents.

Revenue rose 22% to $1.1 billion

Shares jumped almost 10% in after-hours trading. Netflix rose $21.49, or 6.4%, to close regular trading at $354.99.

As more cable TV customers cancel their subscriptions, Netflix has enlarged its library of titles by funding and producing original programs. Its shows, particularly, Orange is the New Black and House of Cards, have been well-received by critics and viewers. The strategy and the accompanying social-media buzz have helped redefine Netflix as more than just another streaming service provider.

Michael Pachter, an equity analyst Wedbush Securities, noted that the stock's surging price indicates investors seem unconcerned about the gap between net income and cash flow. The gap, which totaled $85 million for the first nine months of 2013, stems from Netflix's heavy investment in producing original content, he says.

"That suggests to me that their earnings growth will be a lot less dramatic than the share price suggests," Pachter said.

Including customers who canceled its service, Netflix added 1.3 million new U.S. customers during the quarter, an 11% jump from a year ago, bringing the domestic membership total to 31 million.

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"While our original series get most of the headlines, a bigger percentage of overall Netflix viewing is generated by our exclusive complete season-after series," wrote Netflix CEO Reed Hastings in a letter to shareholders.

During the quarter, Netflix released the just-ended seasons of some popular TV shows, including The New Girl, The Walking Dead, Scand! al, Breaking Bad, Revolution and Pretty Little Liars.

With more customers signing up for the streaming service in the Nordic nations, the Netherlands and Latin America, Netflix's net additions of international members rose by 1.4 million. "We plan to launch in new markets next year," Hastings wrote. "Our success this year in increasing international net additions to nearly the level of our domestic net additions shows substantial momentum."

Despite other big names in video streaming, including Amazon and Apple, Netflix views its primary competition as HBO. Netflix plans to double its investment in original content next year.

This quarter, Netflix will launch its first animated original series with DreamWorks Animation, and the partnership will continue next year with several other series.

Meanwhile, Orange is the New Black will end the year as its most watched original series ever, and House of Cards became the first TV series to win a major prime-time Emmy without ever airing on a broadcast network or cable channel, Hastings said.

While Netflix is often seen as a direct substitute for cable TV, the company could be eyeing opportunities in the pay-TV business. In the U.K., Netflix partnered with Virgin Media to offer Netflix as an option in the cable company's set-top box.

"We are open to more of these integrations with cable set-tops around the world," Hastings wrote. "But given the fragmented technology footprints, we think it will be many years before cable set-top boxes match Internet set-top boxes for Netflix streaming volume."

Will Tesla Solve Its Biggest Problem Tonight?

Tesla's 2013 Model S. Photo Credit: Tesla Gallery.

Some of the greatest innovators and leaders aren't recognized as such because of their penchant to solve incredibly difficult problems – although many do just that. Rather, it's by solving problems with answers so simple that they're typically overlooked. Tesla (NASDAQ: TSLA  ) has announced a press conference to be held today to demonstrate how its Model S will jump a hurdle some consumers and investors have complained about – the length of time it takes to recharge its battery. Even Consumer Reports, which recently gave Tesla's Model S a rating of 99 out of 100, had only one complaint: that it could take six hours to recharge a battery if traveling long distances. Here's how the problem has perhaps been solved.

Think outside the box
As I mentioned, sometimes the best answer is the simplest and is often overlooked. This time, though, the solution may have been overlooked because it had been tried before and failed. The company Better Place, which filed for bankruptcy this year, had a similar strategy. But its strategy had one flaw: It serviced consumers with lower incomes than your typical Tesla buyer, and it couldn't keep the battery swap cost low enough to remain successful.

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Tesla hasn't yet provided any details on how this battery pack swap will take place, opting to demonstrate it instead. The idea of a battery swap instantly raises a few questions. For instance, as batteries age they consistently hold less and less charge, and swapping a battery for another of dubious quality could pose problems. If I just forked over at least $69,000 for a new Model S and then have to hand you my brand-new battery to exchange it for what could be a much older one holding less charge, I'd be very reluctant to do so. I'm quite sure Elon Musk has thought of this, and that it is a problem that already has a solution and will be explained tonight – but we'll see.

If Tesla has indeed drawn up a way for a quick, painless, and cheaper way to swap batteries for those drivers worried about traveling long distances, then it will be a very positive development for investors. The battery swap solution could boost revenues by bringing additional consumers to Tesla showrooms who were originally hesitant to purchase a Model S because of driving distance limitations. It would also give investors more confidence that Tesla will continue to innovate its way past other problems that will undoubtedly arise – giving more justification for its very lofty valuation. In addition to all those potential benefits, this development continues the seemingly endless positive publicity that Tesla has received lately, even through a recall – which was handled extraordinarily well.

Bottom line
Tesla has been one of the wildest rides in the stock market to witness this year, and the company has a very divided following. Many Fools are at opposite ends of the argument; some believe Tesla could live up to its lofty valuation, others believe that its share price has risen far ahead of its actual value. One thing is for sure: Tesla is jumping one hurdle at a time, and while I believe that the company will fight an uphill battle over the short term, it could be one incredible long-term story for patient investors willing to endure speed bumps throughout the decade.

Is Tesla doomed to crash just as fast as it has surged these last two months? Giant competitors are already moving to disrupt Tesla. Will the company be able to fend them off? The Motley Fool answers this question and more in our most in-depth Tesla research available. Get instant access by clicking here now.

What’s the Best Small Cap Big Brother Security Stock? ALOG, OSIS & VSYM

Small cap security stocks Analogic Corporation (NASDAQ: ALOG), OSI Systems, Inc (NASDAQ: OSIS) and View Systems Inc (OTCBB: VSYM) all aid Big Brother to keep us safe with security inspection systems intended for airports and other public places rather than equipment to just spy on us. Moreover, the security inspection systems market is global and massive as its not just about detecting potential hijackers at airports as such systems can be used to fight or prevent crime. With that thought in mind, here is a look at three small cap security inspection system stocks:

Analogic Corporation. Many of the largest and best-known medical imaging companies incorporate Analogic Corporation's high-performance imaging subsystems into their products plus the company's state-of-the-art airport security imaging systems are installed in airports around the world. More specifically, Analogic Corporation's eXaminer® Family of Explosives Detection Systems (EDSs) uses 3-D Continuous-Flow CT technology to automatically examine checked baggage for explosives and other potential threats.

In mid-September, Analogic Corporation reported that revenue rose 10% to $166.2 million in the fiscal fourth quarter while revenue at its medical imaging segment rose 11% to $90.2 million, revenue rose 5% to $43.7 million in its ultrasound segment and rose 14% to $32.3 million in its security technology segment. In the earnings call (the transcript is available on SeekingAlpha here), the CEO noted the following about their security segment:

The new developing high-speed threat detection segment continues to drive growth on overseas demand. We're starting to see signs of U.S. recapitalization, which will drive long-term growth in our mid-speed 3DX product line, as we understand the TSA is in the ordering process. And Smiths Detection achieved U.S. TSA certification, which will further augment demand for our high-speed segment.

The CFO also commented:

Our operating margin in the segment was very strong in the fourth quarter, with non-GAAP operating margins above 30%, reflecting the leverage from volume growth in the segment, as well as favorable product mix.

Finally, Analogic Corporation's CEO ended by saying that he expects the Security Detection segment to deliver strong double-digit growth with excellent margins with international adoption of high-speed in-line automatic threat detection driving growth in the business. On Wednesday, small cap Analogic Corporation rose 1.07% to $91.08 (ALOG has a 52 week trading range of $66.05 to $91.68 a share) for a market cap of $1.13 billion plus the stock is up 23.6% since the start of the year, up 13.5% over the past year and up 143.6% over the past five years.

OSI Systems. A vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications, OSI Systems has three operating divisions: Security, Healthcare, and Optoelectronics and Manufacturing. The security division, known as Rapiscan Systems, is a leading supplier of security inspection solutions utilizing X-ray and gamma-ray imaging and advanced threat identification techniques such as neutron and diffraction analysis and these products are sold into four market segments: Baggage and Parcel Inspection, Cargo and Vehicle Inspection, Hold Baggage Screening, and People Screening. The installed base globally consists of more than 70,000 security and inspection systems.

Last August, OSI Systems reported a 3% fourth quarter year-over-year sales decline to $228 million namely because fourth quarter sales from the prior year were unusually high due to a large US Army program that was substantially completed during that quarter. Excluding the impact of that program, OSI Systems' sales actually increased by 20%. The CEO noted:

Our Security Division achieved record operating profits as the higher margin turnkey screening solution business was a key factor in increasing our operating margins from 7% in fiscal 2012 to 16% in fiscal 2013… The success of our turnkey screening solution programs, the pipeline of opportunities and our expanded product portfolio continue to provide an outstanding outlook for our Security Division.

In the earnings call transcript (available on SeekingAlpha here), the CEO pointed out that:

Having one of the widest portfolios in the industry allows us to participate in numerous opportunities to provide security screening solutions. The cargo scanning market remains a fast-growing segment for us. We captured new opportunities in cargo with a broad set of customers throughout the year, primarily with the Eagle series mobile and fixed inspection systems.

He ended by noting that OSI Systems is entering the fiscal 2014 with a strong backlog and a growing pipeline of domestic and international opportunities in part due to recent events in the world that have illustrated the need for increased infrastructure security. On Wednesday, small cap OSI Systems fell 0.79% to $75.08 (OSIS has a 52 week trading range of $48.10 to $81.23 a share) for a market cap of $1.50 billion plus the stock is up 19% since the start of the year, down 0.74% over the past year and up 323% over the past five years.

View Systems. A manufacturer and installer of weapons detection identification systems, video management platforms and tele-data communication networks, small cap View Systems' products are targeted towards correctional facilities, schools, courthouses, government agencies, event and sports venues and commercial businesses. More specifically, View Systems offers:

ViewScan. A walkthrough concealed weapons detector (CWD), ViewScan uses advanced magnetics technology to visually locate threat objects on its video image. In fact, the system is sensitive enough to locate items such as hidden razor blades and cellular phones, but it will ignore common objects such as coins, keys and belt buckles – eliminating false alarms that slow down security checkpoints. In addition, the portable version has a fifteen minute set-up time utilizing only a Phillips screwdriver, fits inside a golf size case and runs on a battery. Visual First Responder. A first response remote video transmission system that can be utilized in areas where hazardous materials have been exposed, the VFR is small enough to be worn on a belt, helmet or vest (or even by K-9 teams) plus it transmits conventional video or infrared imagery to the command post. Its ideal for law enforcement SWAT teams, Fire Rescue units and HAZMAT team operations.

Last August, View Systems issued a press release to note the company is rapidly regaining traction in foreign markets for its security systems as it has a partnership with Brazil based Armorin, LLC to help it penetrate the Brazilian and South American market with the Brazilian market alone for imported electronic security equipment being worth US$1.5 billion as of 2011, while the value of locally manufactured equipment was also estimated to be US$1.5 billion. Moreover, View Systems has noted that over a dozen installations made in Bangladesh late last year have apparently been very well received by the government and local security organizations plus the company is looking for someone to distribute its products in the South Asia and Middle East regions and it recently signed an agreement with a distributor in West Africa. Here at home, View Systems has received new orders for the ViewScan from the State of Maryland, the Detroit School System Department of Corrections of Connecticut, Milwaukee and the Dodge City Kansas Community College. On Wednesday, View Systems fell 6.25% to $0.03 plus the stock is down 3.2% since the start of the year, down 25% over the past year and up 408.5% over the past five years.

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The Bottom Line. Taking the above into consideration, the security inspection systems market is looking rather hot right now and will probably only get hotter given the direction the world is heading in. That should translate into opportunities for investors in small cap security stocks Analogic Corporation, OSI Systems and View Systems.

Arch Coal Falls 5% as Morgan Stanley Downgrades on Cheaper Coal

Shares of Arch Coal (ACI) have plunged today after Morgan Stanley downgraded the company after predicting that even-cheaper natural gas would knock down coal prices–and Arch’s profits.

Bloomberg News

Morgan Stanley’s Stephen Byrd and team explain:

NAPP coal demand is at the highest risk from negative gas basis in Marcellus and Utica. Although coal demand has rebounded from 2012, we see 2013 as a near term peak as regional gas prices in the production-heavy mid-Atlantic erodes NAPP demand. Although NAPP falls lower on a generic cost curve than CAPP, it is burned primarily in regions exposed to cheap gas from Marcellus and Utica production. We expect weak gas basis relative to Henry Hub to spread though PA, NJ, WV and even Ohio and Downstate NY in 2014, reducing capacity factors at coal plants in these regions. We see ~8mm tons decrease in PJM NAPP coal burn in 2014 relative to 2013.

That’s bad for Arch Coal, Byrd says. He writes:

We are downgrading Arch to Underweight from Equal-weight, driven by our more negative view of the domestic thermal coal market. Arch is a thermal-heavy name with significant balance sheet leverage, making the company vulnerable to prolonged depressed market conditions.

Also taking a hit: Exelon (EXC), which Byrd downgraded to Underweight from Overweight.

It’s not all bad news, however. Two utilities should benefit from this trend, Calpine (CPN) and Dominion Resources (D), although the advantage may already be priced into Dominion’s shares, Byrd says.

Sahes of Arch Coal have dropped 5.3% to $3.90 at 3:03 p.m. today, while Excelon has dropped 3.2% to $28.59. Calpine has gained 0.7% to $19.37 and Dominion is up 1.1% at $62.49. Consol Energy (CNX), which is also exposed to East Coast coal is down 2.1% at $37.55.

Relief rally shows investors keeping the faith

Investors, it appears, were right on their assumption the politicians are working hard to avert a default and end the shutdown.

The Dow Jones industrial average soared 323 points Thursday to 15,126 in the stock market's second best day of the year as investors let out a collective sigh of relief. For now, at least, it looks like investors were right to have faith that agreement will replace the brinkmanship in Congress that has resulted in a government shutdown of more than a week.

Investors had been remarkably unbothered by the game of financial chicken being played in Washington over the debt ceiling, with stocks barely reacting to the week-long shutdown of the government until this week. The Standard & Poor's 500 index never lost more than 5% from its Sept. 18 record close even when fears started to pick up earlier in the week.

"The relief rally is both predictable and despicable," says Michael Farr of Farr Miller and Washington. Congress "brought us to the precipice, brought us back from the precipice, but to no where in particular," he says.

MARKETS: Dow closes up more than 300 on budget thaw

Even after Thursday's big runup, the Dow and S&P 500 are barely above the levels where they finished last week. While the bull market has taken a pause during the government shutdown, it hasn't crashed as some doomsayers warned it could. The Dow Jones industrial average is essentially flat from Oct. 1, the day the government shutdown started.

In many ways, the gain Thursday simply returns the market into a rally that is justified, says Doug Sandler of RiverFront Investment Group. There have been many investors who have been waiting on the sidelines as the stock market has soared by double digits this year, hoping for a pullback so they could get in. "The pullback had come," he says. Investors are eager to jump into stocks, after they hit some turbulence this week, before the bull market resumes in force.

It's a mistake, though, to assume that the bull is back of! f to the races, says Karl Mills of Jurika, Mills and Keifer. Investors are assuming that the process in Congress will go smoothly, when in fact, there are ample opportunities for further arguments, delays and problems. For instance, if all Congress does is postpone decisions about the budget and debt limit for 60 days, investors will get little real relief. "Just what we need is another fiscal cliff," Mills says.

And while investors might be relieved that Congress appears willing to at least talk about solutions, that doesn't mean the stock market is a bargain. The S&P 500 is currently trading at 16.6 times its trailing operating earnings, says S&P Dow Jones Indices. That's below the market's average 18.8 P-E since 1988, but still up considerably from the 14.7 P-E at the end of 2012.

Investors are paying higher prices for stocks, even as Congress still doesn't have a deal. Congress "is playing with matches and gasoline. Accidents do happen," Mills says.

Why Coach Might Keep Pulling Back

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Coach (NYSE: COH  ) sank about 2% today after Canaccord Genuity downgraded the luxury handbag company from buy to hold.

So what: Along with the downgrade, analyst Laura Champine lowered her price target to $62 ($from 65), representing about 14% worth of upside to Friday's close. While bargain-hunters might be attracted to Coach's recent weakness, Champine cautions that increasing competition could continue to weigh on the shares.

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Now what: Canaccord expects Coach's U.S. same-store sales to decline 6% in the third quarter. "Traffic trends appear to be deteriorating, and we believe Coach will be hard pressed to maintain its leading 30% market share with the current product in stores," noted Canaccord. "We expect fast-growing rival Michael Kors will continue to gain ground. ... Given the limited near-term visibility, we are downgrading shares of Coach to Hold from Buy." Of course, with the stock off about 15% from its 52-week highs and trading at a forward P/E of 12, believers in Coach's brand power might want to use that worry to make a long-term commitment. 

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This Baby Apparel Stock is Growing By Leaps and Bounds

Carter's (NYSE: CRI  ) , the branded marketer of baby and children's wear, is facing the headwinds of declining birthrates in the US and Canada. In the US, the crude birth rate (births per 1,000 people) has declined to levels not seen since the Great Depression: down 7% plus since 2007.Worldwide, the crude birth rate is expected to decline from the early 1950's 37.2 births to 13.4.

What's a company to do when its market shrinks year after year? You do what so many other apparel retailers have done and look to Asia. That's exactly what Carter's has done, with the company establishing a presence in Japan. However, according to the CIA Factbook, at a crude birth rate of 7.6, Japan has the lowest birth rate globally. That said, Japan is still a small operation for Carter's, and only contributed $3.5 million to first quarter sales.

Standing on big shoulders
That's the bad news. But just as you'd hoist a little one on your shoulders to get a better perspective, so too have Wal-Mart and Target lifted Carter's. These big-box retailers are important partners to Carter's, especially Target. Target reported that of all apparel, children's was its strongest seller in the second quarter.

More promising for Carter's is Target's new personalized service for expecting and new parents. Testing in 10 Chicago stores, Target offers lounges where parents can relax, check out merchandise with touchable displays and mannequins, work with a dedicated Baby Advisor associate, and access the baby registry with iPads.

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Target's opening of more than 100 stores in Canada by year-end should also boost little Carter's. Canada is Carter's second biggest market, and the company is opening 20 stores there annually until 2016.

Carter's has three brands dedicated to Target and one to Wal-Mart in addition to its main Carter's and OshKosh B'gosh brands. The company operates in three segments: wholesale to stores like big boxes and department stores, its own 600 retail stores, and two e-commerce sites -- one for Carter's and one for OshKosh B'gosh.

E-commerce has been a particularly bright spot for Carter's, with sales up 45.9% on the OshKosh B'gosh site and 59.3% for the Carter's site.

Baby steps for growth
Competitor Children's Place Retail Stores (NASDAQ: PLCE  ) also saw a 33.2% rise in e-commerce year-over-year. E-commerce contributed 58.3% to total sales growth for the company's most recent quarter, totaling $50.5 million in e-sales.

As primarily a specialty retailer and e-tailer, Children's Place doesn't have the wholesale segment to boost it up like Carter's. Its retail segment is struggling, and the company is shuttering 100 under-performing retail stores within three years. This adds up to closing slightly less than 10% of its existing 1,111 retail stores.

Children's Place is also looking for growth by developing a global footprint, although it's just baby steps for now. The company has 20 franchise locations in the Middle East, which opened in 2012, and just announced a 10-year franchise agreement for stores in Israel starting in 2014.

Children's Place isn't nearly as good a business as Carter's with its recent release of a $0.42 a share loss for the second quarter, although that was better than the $0.54 loss the Street expected. And as fellow Fool Jeremy Bowman noted, the company inexplicably raised guidance while guiding for lower same-store sales, following on the current same-store sales decline of 0.4%. Bowman also noted the company has been aggressively buying back shares, which has artificially boosted earnings per share.

Margins across the board have been contracting over the last five years for Children's Place with the trailing net profit margin now at 2.9%; that's lower than its historical average of 4.7%, and less than half Carter's at 6.9%.

It looks like the company won't meet 2012 EPS estimates of $2.63 with only $0.75 booked year-to-date. Meeting 2012 total revenue of approximately $1.8 billion is possible with $1.3 billion for three quarters so far, if its historically strongest quarter, the holiday quarter, performs as usual.

Carter's, on the other hand, looks on track to easily exceed 2012 revenue of $2.3 billion, with the first half coming in at $1.1 billion and the company's much stronger back half of the year ahead.

The big kid on the block
Both Carter's and Children's Place have to contend with retail giant Gap (NYSE: GPS  ) and its BabyGAP and KidsGAP clothing lines. Gap is a truly formidable competitor with 3,400 stores in 90 countries, and many of those countries have higher birth rates than North America.

At 14.9, Gap trades at almost half the trailing multiples of Carter's and Children's Place, at 27.0 and 26.2, respectively. And Gap's yield of 1.9% is twice that of Carter's 0.8%. Gap's trailing net profit margin of 8% is also higher than Carter's.

Of course, Gap is insulated from a baby bust with its adult apparel lines: Banana Republic, Piperlime, Athleta, Gap, and Old Navy. In addition, Gap's strong e-commerce segment should serve the company well.

The Foolish takeaway
You may be tempted to buy Gap, but don't count out Carter's. With the help of big buddies Wal-Mart and Target, and another boost from e-commerce, Carter's has a clear view of profits ahead. Its one-year EPS growth rate at 41.3% is higher than Gap's 36.3%. And longer term it has a beachhead in Asia Pacific now that it is in Japan.

As for Children's Place, its performance may be improving, but with margins contracting and no yield there's little to recommend it. 

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The Smart Way To Handle Family Fights About Aging Parents

Family conflicts can be so emotional and painful.   As parents age, many problems can crop up among adult siblings and sometimes with the elder himself.  Many of these problems arise from financial issues and caregiver issues.  Who is in charge of the money decisions?  Should Dad stop handling the checkbook or the investments?  Mom is giving away money she can't afford to give away. Is the aging parent showing signs of cognitive impairment?  How bad is it and how do you know? Is one family member doing all the hard work? People in the family disagree about what to do and the fight is on.

When adult children don't get along, they usually just avoid each other.  That works, sort of. Until the aging parent becomes difficult, infirm or has a crisis.  The siblings are then forced to come together to make important decisions.  Then, buried resentments, sometimes decades old, rear their ugly heads. A tough situation gets even more difficult.

Here at AgingParents.com, we are often approached by an exasperated son or daughter who is fed up with the parent, a sibling or a group of family members who are on the "wrong side" of a dispute.  People are polarized.  Ugly accusations fly back and forth.  Someone threatens to get a lawyer, or they do get one and the conflict escalates.

Is there a way out of these situations that does not involve spending resources on lawyers all too happy to bill for their time to advocate for each party's position?

There is indeed.  However, the concept is somewhat new and most people never think of it.

Mediating Family Disputes

One good way out of these conflicts is through mediation of family disputes.  We also call it elder mediation.  Here's a brief video that illustrates the concept.

Most of us have heard of mediation one way or another, but we don't usually think of it as a way to resolve disputes about aging loved ones or siblings who disagree about Mom or Dad.  Instead, we think of it as a way to negotiate a way out of a labor dispute, a business matter or a divorce.  Mediation is growing and has application to adult families as well.

When the people involved are willing to sit down together, mediation is an excellent way to work through family conflicts, just as it is to work through conflicts in other settings.  Overall, research shows us that the success rate of using mediation to fix a dispute is about 75-80%.  Those are pretty good odds.  A successful outcome of mediation involves an agreement, which is written down and then becomes enforceable, just as any contract is enforceable.

In our experience as mediators at AgingParents.com, we find that the agreements people reach in mediation are not necessarily about one party paying another party money. Sometimes they are about who gets to be in charge of decisions, who will share the tasks of caregiving for an aging loved one, or when the next in line person should take over as the trustee of the family trust.  A recurring problem is that family members simply do not know how to talk to one another while remaining respectful, even if they disagree.

Family members resort to "silence or violence".  That is, they may clam up when they get angry and this shuts off communication.  Or, they get aggressive, accusatory and end up shouting and name calling, which also shuts off communication.  A mediator, who is always a trained, neutral outsider, can help the warring parties avoid silence or violence and learn how to listen to each other's views.  With help, they can reach common ground, share information and work out their differences with guidance through the process.  (We'd like to see Congress using mediators!)

The Pros and Cons

Mediation is not therapy and it's not going to instantly fix your damaged relationships. If you hate your family member, you're not going to kiss and make up just because you went to mediation.

It costs money.  You are usually paying a private mediator by the hour or a flat rate. Savvy mediators can do their work by Skype(TM) or by phone for families scattered across states. That works too, though face to face is an ideal way to do this.

But, mediation can clearly help people in dispute come to agreement on specific issues, and this can restore peace.   Seeking peace by this dignified means is definitely worth it.  When family fights escalate to lawsuits, no one really wins.

If your family is at war and you think it's hopeless, please do not give up.  If you can get family members to agree to try mediation, do your research to find a trained and experienced elder mediator.  Private mediators are on Mediate.com and eldercaremediators.com, as well as in community mediation service organizations.

4 Tech Stocks Under $10 to Watch

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

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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.

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

Advanced Micro Devices

Advanced Micro Devices (AMD) is a semiconductor company with manufacturing, research and development, and sales and administrative facilities throughout the world. It provides processing solutions for the computing and graphics markets. This stock closed flat at $3.90 in Thursday's trading session.

Thursday's Range: $3.86-$3.94

52-Week Range: $1.81-$4.65

Thursday's Volume: 25.48 million

Three-Month Average Volume: 29.35 million

From a technical perspective, AMD moved slightly off its intraday low of $3.86 and right above its 50-day moving average of $3.71 with decent upside volume. This stock has been trending sideways inside of a consolidation chart pattern for the last month, with shares moving between $3.69 on the downside and $4 on the upside. Shares of AMD are now starting to move within range of triggering a near-term breakout trade above the upper-end of its recent sideways trading chart pattern. That breakout will hit if AMD manages to take out some near-term overhead resistance levels at $3.98 to $4 with high volume.

Traders should now look for long-biased trades in AMD as long as it's trending above its 50-day at $3.71 or above more support at $3.69 and then once it sustains a move or close above those breakout levels with volume that hits near or above 29.35 million shares. If that breakout hits soon, then AMD will set up to re-fill some of its previous gap down zone from July that started at $4.65. Any high-volume move above $4.65 will then give AMD a chance to tag $5 to $5.50.

Kemet

Kemet (KEM) is a manufacturer of capacitors. Its product offerings include tantalum, multilayer ceramic, solid and electrolytic aluminum, film and paper capacitors. This stock closed up 9.2% to $5.09 in Thursday's trading session.

Thursday's Range: $4.58-$5.20

52-Week Range: $3.69-$6.97

Thursday's Volume: 508,000

Three-Month Average Volume: 155,395

From a technical perspective, KEM soared higher here and broke out above some near-term overhead resistance at $4.98 with heavy upside volume. This stock flirted with its 200-day moving average on Thursday at $5.11, after it hit an intraday high of $5.20, but closed right below at $5.09. Volume on this move registered 508,000 shares, which was well above its three-month average action of 155,395 shares.

Traders should now look for long-biased trades in KEM as long as it's trending above Thursday's low of $4.58 and then once it sustains a move or close above Thursday's high of $5.20 with volume that hits near or above 155,395 shares. If we get that move soon, then KEM will set up to re-test or possibly take out its next major overhead resistance levels at $6 to $6.75.

United Microelectronics

United Microelectronics (UMC) manufactures advanced process integrated circuits wafers abnd related electronic products. This stock closed up 4.4% to $2.13 in Thursday's trading session.

Thursday's Range: $2.12-$2.15

52-Week Range: $1.75-$2.44

Thursday's Volume: 1.96 million

Three-Month Average Volume: 1.54 million

From a technical perspective, UMC jumped higher here right above its 50-day moving average of $2.03 with above-average volume. This stock has been uptrending for the last month and change, with shares moving higher from its low of $1.88 to its intraday high of $2.15. During that uptrend, shares of UMC have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of UMC within range of triggering a breakout trade. That trade will hit if UMC manages to take out some near-term overhead resistance levels at Thursday's high of $2.15 to $2.22 with high volume.

Traders should now look for long-biased trades in UMC as long as it's trending above its 50-day at $2.03 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.54 million shares. If that breakout triggers soon, then UMC will set up to re-test or possibly take out its next major overhead resistance levels at $2.39 to $2.59, or possible $2.64.

Superconductor Technologies

Superconductor Technologies (SCON) develops high temperature superconductor materials and related technologies. This stock closed up 8% to $1.74 in Thursday's trading session.

Thursday's Range: $1.60-$1.79

52-Week Range: $1.42-$6.72

Thursday's Volume: 774,000

Three-Month Average Volume: 229,234

From a technical perspective, SCON ripped sharply higher here with above-average volume. This stock recently formed a triple bottom in August at $1.42, $1.44 to $1.48. Following that bottom, shares of SCON have been modestly uptrending, with the stock trending above $1.50. This sharp spike higher on Thursday is now pushing shares of SCON within range of triggering a near-term breakout trade. That trade will hit if SCON manages to take out its 50-day moving average of $1.78 to more resistance at $1.95 with high volume.

Traders should now look for long-biased trades in SCON as long as it's trending above Thursday's low of $1.60 and then once it sustains a move or close above those breakout levels with volume that hits near or above 229,234 shares. If that breakout hits soon, then SCON will set up to re-test or possibly take out its next major overhead resistance levels at $2.25 to $2.85.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

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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.

The government shutdown canceled our wedding

  Government shutdown spoiled our wedding NEW YORK (CNNMoney) With the government shutdown closing national parks across the country, some unlucky brides and grooms are scrambling to make last-minute wedding plans.

Genevieve Jeuck and her fiance Michael Sallemi had planned to get married Wednesday at a resort in the Grand Canyon. But last week, as a possible shutdown loomed closer, they were notified by site officials that they should consider other options.

"I got the call Thursday night. I cried. I was freaking out, and then I thought I was turning into a bridezilla," she told CNN Newsroom Tuesday. "I had to make all new plans on Friday. It was just absolutely exhausting, and we're still unsure of what exactly we're doing."

Jeuck and Sallemi plan to reroute their eight guests to a new location two hours away in Sedona. While the new site is free, they don't know if they will be able to recoup their $250 permit fee and the hundreds of dollars in hotel deposits everyone attending the wedding has made.

Since individual parks issue their own permits, it's unclear exactly how many weddings are expected to take place in the upcoming weeks at the country's hundreds of national parks.

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At Golden Gate National Recreation Area, which features sweeping views of San Francisco's iconic Golden Gate bridge, 11 wedding permits have been issued for the first two weeks of October. And this weekend alone, Yosemite National Park has eight weddings scheduled.

Meanwhile, nine weddings are scheduled on the National Mall in Washington D.C. for this coming week, according to Carol Johnson, a spokeswoman for the National Mall and Monuments. The couples were all notified that if the shutdown continued, their permit would be canceled, she said. She was not sure whether affected couples would receive a refund.

One bride who spent more than a year planning this weekend's wedding in Joshua Tree National Park told CNNMoney she's hopeful that her guests will know where to show up on the big day. She has a backup plan, but is still holding out hope that the park will open in time.

During her seven years of wedding planning at California's Yosemite National Park, Roshel Ryan has dealt with snowstorms, rock slides and fires, but she's never dealt with a complete cl! osure.

She is rushing to help her clients and other nervous couples find the perfect 'Plan B.' One couple, which had been planning an intimate elopement ceremony for this Friday will likely reschedule, while other couples are looking into moving events to a lodge outside the park.

"Couples come from all over the world to get married here," she said. "So it's difficult when you plan something and then all of a sudden you cant even get into the park."

Volatility And The Last Debt Ceiling Crisis: A Lesson From History

In August of 2011, the United States went through a similar take-it-to-the-brink brush with meeting its debt ceiling. Volatility in markets surged at that time, and the VIX more than tripled. While it is trite to say that history never repeats exactly, it remains a useful warning. Past is also often prologue, and so I think it is instructive to look at what happened in the late summer of 2011 as the US approached the debt ceiling then and glean from that what may be in store this time.

The debt ceiling is the total amount the US can borrow and is currently set at $16.7 trillion. Like most modern nations, the US uses deficit spending, or borrowing money to finance expenditures that exceed revenues. Neither side of the congressional aisle has a difficulty with deficit spending per se; the issue has become the perception that it has gone too far. Legislated ceilings on the amount the US can borrow have been put in place to attempt to force fiscal discipline. The problem has become similar to the parent who lacks the resolve to properly discipline their unruly child: threats are issued of consequences for repeat offenses, but are not followed through on. Since 1960, congress has raised the debt ceiling an astonishing 78 times. That averages out to about 1.5 increases per year. Debt ceilings have been raised under both Republicans and Democrats: (source: pewresearch.org)

(click to enlarge)

A failure to raise the debt ceiling has the potential to cause the US to default on its debts, which could have disastrous effects on the economy.

Performance of the VIX

The VIX is the best known measure of volatility. The CBOE Volatility Index, VIX

is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. Since its introduction in 1993, VIX has been considered by many to be the world's premier barometer of investor sentiment an! d market volatility. (source: cboe.com)

The VIX measures investor expectations of volatility in the coming thirty days. This is accomplished by aggregating data on various options premiums. It is often referred to as the "fear gauge" as options premiums tend to rise during market declines as hedging activity increases to protect portfolios. VIX has undergone various changes in its computation methodology over the years, but differences in composition are subtle, and so comparisons with other years, while not perfect, for the most part remain valid. So far, year to date 2013 has seen an average VIX of 14.17, a maximum value of 20.49 and a minimum value of 11.3. The reading at time of writing is 19.48, above average as one would expect given the looming debt ceiling crisis. During 2011 the average VIX level was 24.2 with a minimum of 14.62 and a maximum of 48. (source: all figures from CBOE.com)

VIX During The Last Debt Crisis

The VIX made a massive spike during 2011.

(click to enlarge)

During the month of July, 2011, as talks were heating up between Democrats and Republicans, the VIX rose from a level of 15 to 25, a 67% increase over the course of one month. But the real move, the move from 25 to 48, a move of 92% was accomplished in just four trading days from August 3 to August 8. The astonishing thing is that move happened after the August 1 announcement that the impasse had been solved and the debt ceiling would increase $2.1 - $2.4 trillion, allowing the government to continue to operate into 2013. It would appear the market feared more the government continuing its spending than it feared the government shutting down. This fear was punctuated by S&P downgrading the US debt upon the ceiling being increased.

To give some historical perspective to those 2011 VIX levels, since the beginning of 2007 the average VIX level has been 23.62, the minimum has ! been 9.89! and the maximum 80.86.

Investing in the VIX

One cannot purchase the VIX directly, but one can purchase a reasonable facsimile in the form of IPath S&P 500 Short Term Futures ETN (VXX) which seeks to replicate, net of expenses, the S&P 500 VIX Short-Term Futures Total Return Index. The VXX buys

exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects the implied volatility of the S&P 500 Index at various points along the volatility forward curve. The index futures roll continuously throughout each month from the first month VIX futures contract into the second month VIX futures contract"(source: yahoo finance profile description of VXX)

The typical situation for VIX futures is that second month prices are higher than first month prices, a condition known as contango. This contango causes inherent price decay or negative roll yield as the premium for future months erodes while the future approaches the current date. This condition works against holders of the VXX, and it is for this reason that it is recommended as a short term investment only. Hold periods of a day to a few weeks are commonly recommended.

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But for rare periods, contango reduces and can turn into its opposite, backwardation, the condition where front month futures are priced higher than subsequent futures. Under backwardation, the roll yield becomes positive, price decay turns into price accretion. The normal situation is one of contango and backwardation exists for usually a day or two only.

Backwardation in 2011 and Now

In a highly unusual situation, the VIX was in a state of backwardation for 76 continuous days from August 1 2011 through November 15, 2011. The average amount of backwardation during that time was 7.67% and the maximum backwardation was 27.12%. This became a significant tail wind for V! XX invest! ors reducing or eliminating the cost of holding VXX over longer periods.

(click to enlarge)

VIX has recently gone back into backwardation. No one can say for sure how long it will stay backwardated, but for now this backwardation assists VXX investors and shows investor perception is heightened about volatility in the short term.

Conclusion

Estimates currently point to October 17 as the day when the US government will run out of money and no longer be able to pay its bills and risk defaulting on its debts. Politicians and lawmakers from both parties have demonstrated their willingness in the past to take issues right to the brink. It appears likely that the brink will be approached again this time. With 10 days remaining, it also seems likely that investors will continue to want to hedge portfolios until a solution is in hand. This suggests that options premiums will continue to rise, which will put upward pressure on the VIX. This, coupled with the VIX term structure being in backwardation, makes for a strong case for short term investment in VXX. Further, the fact that VIX remains well below the extreme levels reached in past crises implies significant upside for investors willing to tolerate high levels of volatility.

Source: Volatility And The Last Debt Ceiling Crisis: A Lesson From History

Disclosure: I am long VXX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)