Are Utilities Overvalued?

Don’t look now, but utilities are looking expensive, and it has little to do with whether yields are rising are falling, says ISI Group’s Greg Gordon and team.

Now don’t misunderstand. Gordon isn’t telling investors to avoid all regulated utilities. He has some favorites, including American Electric Power (AEP), Dominion Resources (D), ITC Holdings (ITC), Pinnacle West Capital (PNW) and Westar Energy (WR).

Still, utilities are yield plays. They benefit when interest rates are low and safe yield in bonds are virtually nonexistent, and get hurt when interest rates rise, as safer yield becomes more readily available.

Now forget for a minute whether yields are rising are falling–I’ll leave that to my colleague Michael Aneiro–and consider whether utilities are expensive or cheap to where yields are right now. ISI Group’s Greg Gordon and team explain:

On 9/16/13 we pointed out that [utilities were] more or less at fair value to the bond market and we said that if Treasury yields were to stabilize and corporate yields were to come back in a bit, the group could grind higher, with every 25 basis point move in corporate bond yields worth more than a half a turn in P/E…

Now Regulated Utilities are a turn higher on P/E, trading at 15.9x '14 EPS vs. 15X on 9/16/13. 10-Year Treasury yields have dropped from 2.87% to 2.71% and the Moody's BAA corporate bond yield average has declined from 5.56% to 5.41%. Utilities look at least half a turn overvalued to the bond market. Perhaps Yellen's dovish commentary has had something to do with that.

You can worry about the direction of bond yields later.

American Electric Power has dropped 0.5% to $48.08 at 3:22 pm. today, Dominion Resources has dipped 0.1% to $67.71, ITC Holdings has fallen 1% to $91.10, Pinnacle West Capital has declined 1.4% to $54.64 and Westar Energy is off 0.1% at $32.22.

Top International Stocks To Own Right Now

We have retained our Neutral recommendation on Discover Financial Services (DFS) based on the company�� fundamental strength, which offsets headwinds such as rising expenses and competitive pressure.

Why Reiterate?

Discover Financial�� card sales volume has been increasing over the past several years due to higher average spending per customer, increase in new customers, impact of increased marketing and broadened merchant acceptance. Moreover, the company continues to launch new products tailored to specific customer needs in order to attract new customers.

This Zacks Rank #2 (Buy) company has implemented several capital bolstering initiatives, including equity and debt offerings, which have helped it achieve a strong capital base. Moreover, the strong cash position and outlook influenced management to increase Discover Financial�� dividend by 43% in Apr 2013.

Moreover, Discover Financial regularly forms alliances to boost card acceptances and expand its network. The company is also working hard to establish a foothold in the international card market and has already forayed into India, China, Ecuador, Russia and Nigeria, among others.

Top International Stocks To Own Right Now: Monitise PLC (MONI)

Monitise plc is a United Kingdom-based holding company. The principal activity of the Company is as a technology company delivering mobile banking, payments and commerce networks worldwide. The Company�� segments include Live Operations, Investment in future operations and Investment in technology platform. Live operations include both territory deployments and development contracts, which consist of Monitise United Kingdom, Monitise Americas and Global accounts. Investment in future operations segment represents the Company�� operations which are not live operations covering both pre-sales and start-up period. Investment in technology platform segment comprises the ongoing development, enhancement and maintenance costs of the Monitise technology platform. On June 25, 2012, the Company acquired US mobile banking and payments specialist, Clairmail Inc. (Clairmail). Effective September 5, 2013, Monitise PLC acquired the entire share capital of Grapple Mobile Ltd.

Top International Stocks To Own Right Now: Osisko Mining Corp (OSK.TO)

Osisko Mining Corporation engages in acquiring, exploring, developing, and mining gold properties in the Americas. The company principally owns the Canadian Malartic Mine located in the Abitibi region of north-western Qu茅bec. This property has an estimated proven and probable reserves of 10.71 million ounces of gold. Osisko Mining Corporation also owns the Hammond Reef Gold project located near Atikokan in northwestern Ontario. The company was formerly known as Osisko Exploration Lt茅e and changed its name to Osisko Mining Corporation in May 2008. Osisko Mining Corporation was incorporated in 1982 and is headquartered in Montreal, Canada.

Top 5 Oil Stocks For 2015: Symantec Corporation(SYMC)

Symantec Corporation provides security, storage, and systems management solutions internationally. The company?s Consumer segment delivers Internet security, PC tune-up, and online backup solutions and services to individual users and home offices. Its Security and Compliance segment provides solutions for endpoint security and management, compliance, messaging management, data loss prevention, encryption, and authentication services to large, medium, and small-sized businesses, as well as offers solutions through its software-as-a-service (SaaS) security offerings. This segment?s products enable customers to secure, provision, and remotely manage their laptops, PCs, mobile devices, and servers. The company?s Storage and Server Management segment provides storage and server management, backup, archiving, and data protection solutions across heterogeneous storage and server platforms, as well as solutions delivered through its SaaS offerings to large, medium, and small-s ized businesses. Symantec?s Services segment offers implementation services and solutions, including consulting, business critical services, education, and managed security services. The company also provides various enterprise support offerings, such as annual maintenance support contracts, including content, upgrades, and technical support. It sells its products through its eCommerce platform, as well as through distributors, direct marketers, Internet-based resellers, system builders, ISPs, and retail locations worldwide. Symantec markets and sells its products through distributors, retailers, direct marketers, Internet-based resellers, original equipment manufacturers, system builders, and Internet service providers; and its e-commerce channels, as well as direct sales force, value-added and large account resellers, and system integrators. The company was founded in 1982 and is headquartered in Mountain View, California.

Advisors' Opinion:

• [By Paul Ausick]

  Symantec Inc. (NASDAQ: SYMC) reported second fiscal quarter 2014 results after markets closed on Wednesday. For the quarter, the network security software maker posted adjusted diluted earnings per share (EPS) of $0.50 on revenues of $1.64 billion. In the same period a year ago, the company reported EPS of $0.45 on revenues of $1.7 billion. Second-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.44 and $1.69 billion in revenues.

• [By MONEYMORNING.COM]

  A big player here is Symantec Corp. (Nasdaq: SYMC), a global provider of security, storage, and systems management solutions with an extensive focus on managing consumer data and information.

• [By Traders Reserve]

  For some reason, certain companies can attract buyers no matter the circumstance. I would put Symantec (SYMC) in that category. Shares have gained nearly 20% this year even as Symantec�� prospects deteriorated.

Top International Stocks To Own Right Now: Marathon Petroleum Corp (MPC)

Marathon Petroleum Corporation (MPC), incorporated on November 9, 2009, is a petroleum product refiners, transporters and marketers in the United States. The Company operates in three segments: Refining & Marketing, Speedway and Pipeline Transportation. Marathon Petroleum�� refining, marketing and transportation operations are concentrated in the Midwest, Gulf Coast and Southeast regions of the United States. MPC has two retail brands: Speedway and Marathon. Effective as of June 30, 2011, MPC was separated from Marathon Oil Corporation (Marathon Oil) and became an independent company in a spin-off transaction.

Refining & Marketing

The Company owned and operated six refineries in the Gulf Coast and Midwest regions of the United States with an aggregate crude oil refining capacity of approximately 1.2 million barrels per calendar day as of December 31, 2011. During 2011, its refineries processed 1,177 million barrels per day of crude oil and 181 mbpd of other charge and blend stocks. Its refineries include crude oil atmospheric and vacuum distillation, fluid catalytic cracking, catalytic reforming, desulfurization and sulfur recovery units. The refineries process a range of crude oils and produce numerous refined products, ranging from transportation fuels, such as reformulated gasolines, blend-grade gasolines intended for blending with fuel ethanol and ultra-low-sulfur diesel fuel, to heavy fuel oil and asphalt. Additionally, MPC manufacture aromatics, propane, propylene, cumene and sulfur.

The Company�� Garyville, Louisiana refinery is located along the Mississippi River in southeastern Louisiana between New Orleans and Baton Rouge. The Garyville refinery is configured to process heavy sour crude oil into products, such as gasoline, distillates, asphalt, polymer grade propylene, propane, isobutane, sulfur and fuel-grade coke. The Catlettsburg, Kentucky refinery is located in northeastern Kentucky on the western bank of the Big Sandy River, near the confluence! with the Ohio River. The Catlettsburg refinery processes sweet and sour crude oils into products such as gasoline, distillates, asphalt, cumene, petrochemicals, propane and propylene. The Robinson, Illinois refinery is located in southeastern Illinois. The Robinson refinery processes sweet and sour crude oils into products, such as multiple grades of gasoline, distillates, anode-grade coke, propane, butane and propylene.

MPC�� Detroit, Michigan refinery is located near Interstate 75 in southwest Detroit. It is the petroleum refinery operating in Michigan. The Detroit refinery processes light sweet and heavy sour crude oils, including Canadian crude oils, into products, such as gasoline, distillates, asphalt, slurry, propane, and propylene. Its Canton, Ohio refinery is located approximately 60 miles southeast of Cleveland, Ohio. The Canton refinery processes sweet and sour crude oils into products such as gasoline, distillates, asphalt, propane, slurry and roofing flux. Its Texas City, Texas refinery is located on the Texas Gulf Coast approximately 30 miles south of Houston, Texas. The refinery processes sweet crude oil into products such as gasoline, chemical grade propylene, propane, slurry and aromatics.

As of December 31, 2011, the Company owned and operated 62 light product and 21 asphalt terminals. In addition, it distributes through approximately 52 third-party light product and 12 third-party asphalt terminals in its market area. During 2011, marine transportation operations included 15 towboats, as well as 167 owned and 14 leased barges that transport refined products on the Ohio, Mississippi and Illinois rivers and their tributaries, as well as the Intercoastal Waterway. As of December 31, 2011, the Company leased or owned approximately 1,950 railcars of various sizes and capacities for movement and storage of refined products. In addition, it own 124 transport trucks for the movement of refined products.

The Company produces propane at all six of its! refineri! es. Propane is primarily used for home heating and cooking, as a feedstock within the petrochemical industry, for grain drying and as a fuel for trucks and other vehicles. The Company is also a producer and marketer of feedstocks and specialty products. Product availability varies by refinery and includes propylene, cumene, dilute naphthalene oil, molten sulfur, toluene, benzene and xylene. Propane is primarily used for home heating and cooking, as a feedstock within the petrochemical industry, for grain drying and as a fuel for trucks and other vehicles.

Speedway

The Company sells transportation fuels and convenience products in the retail market in the Midwest, primarily through Speedway convenience stores. The Speedway segment sells gasoline and merchandise through convenience stores that the Companu owns and operates, primarily under the Speedway brand. Speedway-branded convenience stores offer a range of merchandise, such as prepared foods, beverages and non-food items, including a number of private-label items. As of December 31, 2011, Speedway had 1,371 convenience stores in seven states.

Pipeline Transportation

The Company transports crude oil and other feedstocks to our refineries and other locations, delivers refined products to wholesale and retail market areas and includes, among other transportation-related assets, a majority interest in LOOP LLC, which is the owner and operator of the United States deepwater oil port. It owns common carrier pipeline systems through Marathon Pipe Line LLC (MPL) and Ohio River Pipe Line LLC (ORPL), both of which are wholly owned subsidiaries. These pipeline systems transport crude oil and refined products, primarily in the Midwest and Gulf Coast regions, to its refineries, its terminals and other pipeline systems. The Company�� MPL and ORPL wholly owned carrier systems consist of 1,707 miles of crude oil lines and 1,825 miles of refined product lines comprising 31 systems located in 11 states, as of Decem! ber 31, 2! 011. In addition, MPL leases and operates 217 miles of common carrier refined product pipelines.

The common carrier refined product pipelines include the owned and operated Cardinal Products Pipeline and the Wabash Pipeline. The Cardinal Products Pipeline delivers refined products from Kenova, West Virginia, to Columbus, Ohio. The Wabash Pipeline system delivers refined products from Robinson, Illinois, to various terminals in the area of Chicago, Illinois. Other refined product pipelines owned and operated by MPL extend from: Robinson, Illinois to Louisville, Kentucky; Robinson, Illinois to Lima, Ohio; Wood River, Illinois to Indianapolis, Indiana; Garyville, Louisiana to Zachary, Louisiana, and Texas City, Texas to Pasadena, Texas.

As of December 31, 2011, the Company had partial ownership interests in the pipeline companies that have approximately 110 miles of crude oil pipelines and 3,600 miles of refined products pipelines, including about 970 miles operated by MPL, which include Centennial Pipeline LLC (Centennial), Explorer Pipeline Company (Explorer), LOCAP LLC (LOCAP), LOOP LLC (LOOP), Muskegon Pipeline LLC (Muskegon) and Wolverine Pipe Line Company (Wolverine).

The Company holds a 50% interest in Centennial, which owns a refined products pipeline system connecting the Gulf Coast region with the Midwest market. The Company holds a 17% interest in Explorer, a refined products pipeline system extending from the Gulf Coast to the Midwest. It holds a 51% interest in LOOP, the owner and operator of the Louisiana Offshore Oil Port, which is a deepwater oil port capable of receiving crude oil from large crude carriers, located 18 miles off the coast of Louisiana, and a crude oil pipeline connecting the port facility to storage caverns and tanks at Clovelly, Louisiana. The Company holds a 60% interest in Muskegon, which owns a refined products pipeline extending from Griffith, Indiana to North Muskegon, Michigan. It hold a 6% interest in Wolverine, a refined prod! ucts pipe! line system extending from Chicago, Illinois to Toledo, Ohio.

Advisors' Opinion:

• [By Dan Caplinger]

  In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks more closely at inflation and its impact over the past 12 months. Dan notes that for those who've seen little wage growth, stable prices have been good, but the Federal Reserve would prefer to see inflation at somewhat higher levels of around 2%. Dan points to the energy markets as a key reason for low inflation, as gasoline prices are down more than 5% from year-ago levels. Dan explains how that's been bad news for refiners Marathon Petroleum (NYSE: MPC  ) , Valero Energy (NYSE: VLO  ) , and HollyFrontier (NYSE: HFC  ) , even though cheap crude availability has still allowed them to be profitable. Dan concludes that if plentiful energy supplies keep prices low, it could further dampen inflationary pressure for years to come.�

Top International Stocks To Own Right Now: Panax Geothermal Ltd (PAX.AX)

Panax Geothermal Ltd engages in the identification, exploration, and development of geothermal resources primarily in Australia, Indonesia, and India. Geothermal energy is the source of renewable energy that replaces base load power generated using fossil fuels. It operates in Penola Trough, Other Limestone Coast, Cooper Basin, Indonesia, and Other International segments. The company holds 100% interest in the Penola, Limestone Coast Geothermal project covering an area of approximately 3,000 square kilometers located in the Limestone Coast, South Australia; and the Hutton Geothermal project covering an area of 949 square kilometers located in the Cooper Basin, South Australia. It also holds a 49% interest in the Puga Geothermal project covering an area of approximately 100 square kilometers located in the Himalayan region, Upper Indus Valley, northern India. In addition, the company holds a 45% interest in the Sokoria Geothermal project for a 30 MW geothermal development o n Flores Island; a 35% interest in the Ngebel Geothermal project for a 165 MW geothermal development on East Java; a 51% interest in the Dairi Prima Geothermal project for a 25 MW geothermal development in Northern Sumatra; and a 95% interest in the Jambi Geothermal project for a 80 MW geothermal development in Central Sumatra, Indonesia. Panax Geothermal Ltd is based in Adelaide, Australia.

Top International Stocks To Own Right Now: BNC Bancorp(BNCN)

BNC Bancorp operates as the holding company for Bank of North Carolina, which provides a range of commercial banking products and services to individuals, and small to medium size businesses in North Carolina. The company offers various deposit products, including checking and savings accounts, negotiable order of withdrawal accounts, money market demand accounts, noninterest-bearing accounts, and fixed interest rate certificates with varying maturities. Its loan portfolio comprises business loans secured by real estate, personal property, and accounts receivable; unsecured business loans; consumer loans that are secured by consumer products, such as automobiles and boats; unsecured consumer loans; commercial real estate loans; and commercial, installment, and personal loans. The company also offers safe deposit boxes and other associated services. As of December 31, 2009, it operated a main office in Thomasville, 15 other branch offices, and 1 limited services office. The company was founded in 1991 and is headquartered in High Point, North Carolina.

Top International Stocks To Own Right Now: Point.360(PTSX)

Point.360 operates as an integrated media management services company in the United States. It offers film, video and audio post-production, archival, duplication, computer graphics, and data distribution services. The company also provides services to edit, master, reformat, covert, archive, and distribute its clients? film and video content, including television programming, feature films, and movie trailers. Its value-added services comprise visual effects, video and data editing, graphics and animation, digital color correction, picture restoration, audio post-production, audio restoration and layback, closed captioning and subtitling, foreign language mastering, standards conversion, broadcast encoding, global distribution and syndication, and archival services. In addition, Point.360 is involved in the rental and sale of DVDs and video games to consumers through its Movie>Q retail stores. Its customers include independent motion picture and television production com panies, television program suppliers, national television networks, infomercial providers, local television stations, television program syndicators, corporations, and educational institutions, as well as advertising agencies, and corporate or instructional video providers. The company is based in Burbank, California.

Advisors' Opinion:

• [By Lisa Levin]

  Point.360 (NASDAQ: PTSX) shares reached a new 52-week low of $0.528. Point.360's trailing-twelve-month ROE is -12.69%.

  QC Holdings (NASDAQ: QCCO) shares tumbled 3.68% to reach a new 52-week low of $1.83. QC Holdings shares have dropped 42.60% over the past 52 weeks, while the S&P 500 index has gained 31.67% in the same period.

Top International Stocks To Own Right Now: MSB Financial Corp.(MSBF)

MSB Financial Corp. operates as the holding company for Millington Savings Bank that offers various banking products and services in New Jersey. It offers various deposit products, including checking and savings accounts, certificates of deposit, and fixed or variable rate individual retirement accounts. The company?s loan portfolio comprises one-to-four family loans, construction loans, commercial loans, home equity loans, and lines of credit, as well as consumer loans, including new and used auto loans, secured and unsecured personal loans, account loans, and overdraft lines of credit. It also provides financing for commercial real estate, including multi family dwellings/apartment buildings, service/retail and mixed-use properties, churches and non-profit properties, medical and dental facilities, and other commercial real estates. The company was founded in 1911 and is based in Millington, New Jersey. MSB Financial Corp. is a subsidiary of MSB Financial, MHC.

Top International Stocks To Own Right Now: Emergeo Solutions Worldwide Inc(EMG.V)

Emergeo Solutions Worldwide Inc. develops, integrates, sells, and supports emergency management, environment health and safety, and security software solutions and services in Canada, the United States, the Middle East, and Australia. The company?s product line includes EmerGeo FusionPoint, a Web-based crisis information management system; EmerGeo Mapping software, an open emergency mapping tool that integrates with customer's existing GIS systems, EmerGeo FusionPoint, and Google earth; and Portable EOC. It also offers training, implementation, and integration services. The company was formerly known as EmerGeo Solutions Inc. and changed its name to EmerGeo Solutions Worldwide Inc. in August 2008. EmerGeo Solutions Worldwide Inc. was founded in 2002 and is headquartered in Vancouver, Canada.

Top International Stocks To Own Right Now: AAR Corp.(AIR)

AAR CORP. provides products and services to aviation, government, and defense markets worldwide. The company?s Aviation Supply Chain segment purchases and sells new, overhauled, and repaired engine and airframe parts and components. It also repairs, overhauls, and sells avionics, electrical, electronic, fuel, hydraulic, and pneumatic components and instruments, as well as internal airframe components; and provides customized inventory supply and management programs for engine and airframe parts and components. In addition, this segment sells and leases commercial jet engines and used commercial aircraft; and provides advisory services, including assistance in remarketing aircraft, records management, and storage maintenance. Its Government and Defense Services segment involves in fixed- and rotary-wing flight operations; and performs engineering and design modifications on rotary-wing aircraft for government customers. This segment also provides customized performance-base d logistics programs in support of the U.S. Department of Defense and foreign governments; and engineering, design, manufacturing, and system integration services. The company?s Maintenance, Repair, and Overhaul segment provides airframe maintenance inspection and overhaul, painting, line maintenance, airframe modifications, structural repairs, avionic service and installation, exterior and interior refurbishment, and engineering services, as well as support for commercial and military aircraft; and repairs and overhauls landing gears, wheels, and brakes. Its Structures and Systems segment designs, manufactures, and repairs airdrop and other transportation pallets, and containers and shelters used in support of military and humanitarian tactical deployment activities. This segment also designs, manufactures, and installs in-plane cargo loading and handling systems for commercial and military aircraft and helicopters. AAR CORP. was founded in 1951 and is headquartered in Wood Dale, Illinois.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  AAR (NYSE: AIR) shares tumbled 10.32 percent to $26.84 after the company reported a drop in its fiscal first-quarter profit.

  J. C. Penney Company (NYSE: JCP) was down, falling 15.17 percent to $10.10 despite a Dow Jones report stating that J.C. Penney will hire around 35,000 holiday season workers.

• [By Lauren Pollock]

  AAR Corp.'s(AIR) fiscal first-quarter profit fell 1.6% as the aviation products and services supplier’s overall sales declined.

  Bank-holding company Banner Corp.(BANR) on Tuesday said it had agreed to buy Home Federal Bancorp Inc.(HFBL) (HOME) for $197 million in cash and stock. The deal, expected to close in the first quarter of 2014, will result in a combined company with about $5.2 billion in assets, making it the fourth-largest bank in the Pacific Northwest by assets, the companies said.

• [By Seth Jayson]

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

• [By Rich Smith]

  By far the largest contract of the day was a massive $5.3 billion indefinite-delivery/indefinite-quantity, multiple-award contract issued to a mind-boggling 914 separate recipients simultaneously. Winners included everyone from subsidiaries of brand-name defense contractors such as AAR Corp (NYSE: AIR  ) and SAIC (NYSE: SAI  ) to lesser-known, federally defined small businesses such as "Wakelight Technologies" of Honolulu and "Electromagnetic Compatibility Management Concepts" of Sterling, Va.

Top International Stocks To Own Right Now: Newcastle Investment Corp (NCT)

Newcastle Investment Corp. (Newcastle) is a real estate investment and finance company. Newcastle invests in, and actively manages, a portfolio of, real estate securities, loans, excess mortgage servicing rights (MSRs) and other real estate related assets. The Company segments include unlevered CDOs, which include unlevered investments in deconsolidated Newcastle CDO debt; unlevered excess MSRs; non-recourse other, which includes investments financed with other non-recourse debt; recourse, which includes investments and debt repurchases financed with recourse debt; unlevered other, which includes other unlevered investments, and corporate. In April 2011, Newcastle sold its retained interests in Newcastle CDO VII, a non-consolidated VIE of Newcastle. On May 15, 2013, the Company announced the spin-off of New Residential Investment Corp. In June 2013, Newcastle Investment Corp completed the sale of 100% of the assets in Newcastle CDO IV.

Real Estate Securities

Newcastle underwrite, acquire and manage a portfolio of credit sensitive real estate securities, including commercial mortgage backed securities (CMBS), senior unsecured real estate investment trust (REIT) debt issued by REITs, real estate related asset backed securities (ABS), including subprime securities, and Federal National Mortgage Association (FNMA)/ Federal Home Loan Mortgage Corp. (FHLMC) securities. As of December 31, 2011, the Company�� real estate securities represented 47.4% of its assets.

Real Estate Related Loans

Newcastle acquires and originates loans to real estate owners, including B-notes, mezzanine loans, corporate bank loans, and whole loans. As of December 31, 2011, the Company�� real estate related loans represented 22.3% of its assets.

Residential Mortgage Loans

Newcastle acquires residential mortgage loans, including manufactured housing loans and subprime mortgage loans. As of December 31, 2011, the Company�� residential mortgage loans rep! resented 9.1% of its assets.

Operating Real Estate

Newcastle acquires and manages direct and indirect interests in operating real estate. As of December 31, 2011, the Company�� operating real estate represented 0.9% of its assets.

Excess Mortgage Servicing Rights

Newcastle invested in excess MSRs in December 2011. As of December 31, 2011, the Company�� interests in these rights represented 1.2% of its assets.

Advisors' Opinion:

• [By Albert Alfonso]

  On April 26, Newcastle Investment Corp. (NCT) finally announced the spin-off date for shares in its wholly owned subsidiary New Residential (NRZ). The distribution is expected to be made on or about May 15, 2013. Below is a helpful timeline from the presentation related to the spin-off of New Residential:

• [By Jonas Elmerraji]

  You don't have to be an expert technical analyst to figure out what's going on in shares of Newcastle Investment (NCT) -- a quick glance at the chart will do. NCT has been in an uptrend since the end of December, rallying as it got pushed by tailwinds in the real estate sector and then spun off its residential financing unit into New Residential Investment (NRZ) in May.

  Adjusting shares of NCT for the spinoff gives us the chart above.

  As you might expect, the best time to be a buyer in NCT is on a bounce off of support. Buying off a support bounce makes sense for two big reasons: It's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong).

  The fact that NCT has managed to clear its previous swing high from May speaks volumes about this stock's relative strength right now. Historically, high relative strength tends to continue to outperform the market for another three to 10 months. That puts NCT owners in a good position for the second part of 2013.

U.S. Steel and AK Steel at Risk from Falling Steel Prices

Investors turned bullish on higher steel prices for U.S. producers in 2013, helping to spur stocks like US Steel (X) and AK Steel (AKS) higher during the latter half of the year. They might want to rethink that position this year.

Bloomberg

JPMorgan’s Michael Gambardella and team explain:

Specifically, we expected the combination of domestic capacity returning to the market at the time of weakening cost support from iron ore and coking coal would depress U.S. prices. In addition, scrap prices play a key factor in U.S. sheet steel markets given the prevalence of scrap-based mini-mills at roughly 33% market share. After a substantial rise through year end 2013, momentum appears to be fading based on weaker than expected January benchmarks and more importantly signs of stress in the country’s biggest scrap importer, Turkey. Lastly, the rapid rise in domestic prices increased U.S. premiums over Chinese steel prices to near record levels and we are beginning to see the first signs of the resulting increased import pressure on U.S. prices.

As a result, they reiterated their bearish view on US Steel and AK Steel, while stating their preference of Nucor (NUE) and Steel Dynamics (STLD) for their “variable cost structures and significant leverage to an eventual recovery in non-residential construction activity,” Gambardella says. UBS stated a similar preference earlier this month.

Shares of US Steel have gained 0.2% to $25.38 today, while AK Steel has dropped 2.9% to $6.07, Nucor has fallen 0.5% to $48.54 and Steel Dynamics has declined 1.8% to $16.66.

Thinking the Unthinkable: How Would a US Debt Default Impact USD?

Top Gold Stocks To Own For 2015

The political impasse in Washington and wrangles over the US debt ceiling, which is leading to a gradual shut down of the US government, is yet to seriously rattle market sentiment, but the longer it carries on the greater the risk of extreme market volatility.

Already, there will be no Non Farm Payrolls number on Friday leaving a void in traders' calendars. So far the markets are focussing on the fact that forced government spending cuts will damage economic growth leading to the Federal Reserve kicking its quantitative easing tapering plans further into the future.

That's a bearish scenario for USD and that is how the markets are playing it out – at least for the time being.

But the situation could easily get worse as the different political sides effectively play a game of chicken with neither side willing to yield. The resulting car crash would be a default on interest payments by the US government, which could happen sometime from October 17 onwards. For many in the forex markets this is still seen as a highly unlikely event – but given the political divisions it can't be entirely ruled out and the markets appear to be complacent about this.

The big question for forex traders is what happens to the USD in the event of a US default?

JPY could be a short-term haven of choice in the event of a US default

Thinking the unthinkable – US debt default

Times of extreme panic and uncertainty usually lead to a flight to the USD. A default by the US would certainly call into question that safety status. It would also trigger a stock market crash and a savage sell-off in US Treasuries with foreign holders desperate to repatriate their funds to safer havens – if indeed any could be found. Even gold can't all together be trusted as a store of safety under such conditions as it might get hit by margin selling.

JPY could for the short-term become the next safety haven currency of choice, partly accentuated by nervous Japanese financial institutions repatriating their funds back home and it is also a liquid currency backed by a single large economy, unlike the EUR. But given a US government default has not happened before in modern times it is difficult to judge how the forex markets would react. 

In the absence of a properly functioning government the Federal Reserve and the regulators are likely to step in to try and manage the carnage in the markets and protect the economy. They could take one of several actions:

1. The Federal Reserve could massively increase its quantitative easing programme to stabilise asset markets with no guarantee that it would work – this is likely to be bearish for USD.

2. The authorities could shut down trading exchanges to curb selling pressure and if there was a run on the USD they could even impose temporary capital controls. Less bearish for USD.

3. It's possible a temporary legal loophole could be found to somehow pay the interest on US government bonds pending an approval on the debt ceiling. This could trigger a relief rally for USD.

4. In event of a default the government is likely to make stern promises that interest obligations will be honoured in full with interest paid on the interest in a bid to calm investors' nerves. It depends if investors are too busy panicking to listen.

Agreement still most likely outcome followed by USD rally

Being forced into taking such drastic actions would be deeply damaging for trader and investor perceptions towards the US. It is also still more likely that an agreement will be hammered out at the last minute, but it may well only be very short-term and could make these fraught political negotiations a more regular feature. This would be damaging for the global economy and also for USD as it would imply that quantitative easing will simply carry on at the current pace for a lot longer. 

The closer the US gets to defaulting on its debt obligations, the more volatility is likely to spike up and the more the market will be driven by news announcements from Washington.

However, once a deal is thrashed out, a sharp relief rally on USD is likely to ensue, in part driven by heavy short covering. 

By Justin Pugsley, Markets Analyst MahiFX

MahiFX is on twitter @MahiFX

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

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Futures: Opening Print and S&P Levels to Watch

Asian markets closed mostly higher and all 12 European markets are trading higher. This morning's economic calendar starts with the Empire State Manufacturing Survey and the industrial production numbers. Tomorrow starts with CPI, Treasury int'l capital, housing market index and the first day of the FOMC. The rest of the week has 9 different numbers and a boatload of Fed speak. With the S&P back near its high, both data and headlines will matter.

The rally in the S&P has been breaking the hearts of the bears for years. This is the stuff that kills market timers like Bob Prechter and Bert Dohmen. They get run over all year calling highs, calling for the apocalypse, and then they go quiet when the markets start going back up again. Until the Fed declares its full intentions to shut down the bond-buying program,why fight it?

Sure there have been some S&P corrections, but until the program is fully removed we won't know what the markets are made of. The end of bond buying might, like every other supposed reason for a crash, scare everyone into selling, only to watch the market go back up. If there is a lesson learned, it's that being a buyer of the S&P has paid off far better than being a seller.

Our view:

The current price action in the S&P is for a small pullback or selloff early in the day, followed by more of the low-volume upside grind we have been seeing for the last two weeks. In most cases the two days leading up to the Fed's announcement are slow. But with the S&P up so much last week, who's to say the gains will not continue?

The current thinking is that the ES could rally right up to the meeting and then sell off during. What we do know is the S&P continues to prove the crowd wrong.

Our call:

Sell the early rally and buy weakness and open the Ned Davis S&P cash study. The September quad witching stats are bullish all week and it's all buy stops up from 1697 to 1712.

As always, use sto! ps and keep an eye on the 10-handle rule. Don't forget to catch MrTopStep on The Closing Print video found under the OptionsTV page (top bar). We report directly from the SPX pits, wrapping up the day and positioning for trade tomorrow.

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Top Blue Chip Companies To Watch For 2015

Best Asian Companies To Watch For 2015

Concerns over a prolonged government shutdown and a negative report on private job sector growth helped push the S&P 500 futures down sharply on Globex yesterday. The futures opened sharply lower at 8:30 Central and went into a 3-handle chop, holding above Tuesday's 1675.25 Globex low. After a few failed rally attempts the ESZ (E-mini S&P) broke down through the 1675.00 level, hitting sell stops down to a new daily low at 1673.25.

The Asian markets closed mostly higher and Europe is trading modestly higher. This morning's economic calendar includes six different economic reports and four fed governors speaking. When the S&P 500 gaps down sharply, prepare to buy.

One of our key trading rules is the Fade Trade. It resembles "Counter-Trend Friday," but the fade trade applies to days when the S&P futures gaps up or down sharply--in this case, down. You prepare to buy on the assumption that those short-sellers will have buy stops which the algos will find and hit.

We believe two things happen. The first is most of the selling was done before the 8:30 open, but when the ESZ started going down after the open the second wave of selling came in. The algos pushed the S&P down through the sell stops to the low of the day. By that point, all the selling had been used up. Trading is all about timing, and yesterday when the ESZ started breaking down I thought it was too early in the day to start buying. The call was exact but my execution and timing were off. When that happens your whole game plan gets thrown off and that is exactly how it went.

This morning crude oil sold off below $104 a barrel and European stocks bounced after China's services sector expanded. As the U.S. deadlock continues, the dollar is trading at an eight-month low. Despite all the negatives, stocks seem to be drawing some support from the idea that the central bank may have to keep its bond buying program going well past the end of 2013.

A budget deal seems closer, but the talk! s (or lack of talks) have prolonged the deadlock. At today's White House press briefing a reporter asked press secretary Jay Carney, "How does it help you get a deal if you're calling Republicans extortionists and terrorists?" Sen. Harry Reid offered Speaker John Boehner a temporary funding extension--at levels the House Republicans demanded--while a bipartisan commission discusses details. He has made similar offers 18 times and Boehner rejected it again, suggesting that he thinks it's to his political advantage to shut down rather than let government workers keep working while Congress negotiates. One WWII veteran disagreed: during a photo-op at the (closed to the public) World War II memorial, Boehner was told by a veteran, who trespassed onto the memorial site, to "go back and do your %&#*$ job."

The ongoing fight doesn't serve either party or the public. While the markets remain weak, the risk is to the upside. That said, there is a lot of wear and tear going on. As of this morning the S&P has closed lower eight out of the last 10 sessions. Our view is to buy the early weakness and sell the rallies. We remain hesitant about the sell side because we fear the an announcement of a deal will cause a big push back up. There are a lot of buy stops building up above 1688 up to 1695. I think there is a good possibility we see that today.

Best Asian Companies To Watch For 2015: Kane Biotech Inc. (KNE.V)

Kane Biotech Inc., a biotechnology company, engages in the research and development of products to prevent and disperse biofilms in medical and industrial applications. Its products include DispersinB, an antibiofilm enzyme, which inhibits and disperses biofilms of bacterial pathogens for human, animal, agricultural, and industrial applications; Aledex, an anti-infective composition used in the prevention of catheter associated infections; Competence stimulating peptide, a toothpaste and mouthwash additive for preventing and dispersing dental plaque biofilms; and KBI antibacterial disinfectant, a patented antimicrobial-antibiofilm combination comprising Chlorhexidine and Sodium Metaperiodate used for the antimicrobial activity against common pathogens in the areas of healthcare, veterinary, aquaculture, industries and institutions, and food processing establishments. The company was founded in 2001 and is based in Winnipeg, Canada.

Best Asian Companies To Watch For 2015: Vigil Health Solutions Inc.(VGL.V)

Vigil Health Solutions Inc. engages in the development, marketing, and distribution of emergency response and monitoring solutions to the providers of seniors housing in Canada and the United States. The company offers Vigil Integrated Care Management System, a technology platform combining software and hardware to provide solutions that guide care of and monitor seniors living in long-term care facilities. Its Vigil Integrated Care Management System includes Vitality Care System, a wireless or hybrid call system designed to alert caregivers or security staff when a resident is in need of assistance, identify who the resident is, and provide a general description of his/her location; and Vigil Nurse Call System, which allows residents to call caregivers through hardwired call buttons with call cords, emergency push stations, or emergency pull stations. The company?s Vigil Integrated Care Management System also includes Vigil Perimeter Monitoring, a bed monitoring system t hat offers an additional form of notification for those facilities where door alarms and resident smoke detectors may not be heard throughout the facility; Vigil Resident Check-In System that alerts staff when a resident is not well enough to have checked-in for the day; and Vigil Dementia System, which provides long-term care residents suffering from dementia and monitors resident rooms to detect unexpected behavior. Its solutions are used in independent living, assisted living, memory care, and skilled nursing facilities. Vigil Health Solutions Inc. is based in Victoria, Canada.

Top Warren Buffett Companies To Watch In Right Now: SMART Technologies Inc.(SMT)

SMART Technologies Inc. designs, develops, and sells interactive technology products and solutions that enhance learning and enable people to collaborate worldwide. The company offers a range of SMART Board interactive whiteboards and displays, as well as other interactive products, such as interactive tables, interactive pen displays, student response systems, wireless slates, audio enhancement systems, document cameras, conferencing software, and a line of interactive learning software. Its portfolio of related attachment products include SMART Response, SMART Slate, SMART Document Camera, SMART Table, SMART Audio, and SMART Classroom Suite. SMART Technologies also provides free online learning resources, an online teacher community, and training and professional development. It sells its interactive whiteboards through a network of distributors and dealers to the education, business, and government markets. The company was founded in 1987 and is headquartered in Calgary , Canada.

Advisors' Opinion:

• [By Seth Jayson]

  Smart Technologies (Nasdaq: SMT  ) is expected to report Q4 earnings on May 16. Here's what Wall Street wants to see:

  The 10-second takeaway
  Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Smart Technologies's revenues will wither -22.4% and EPS will remain in the red.

Best Asian Companies To Watch For 2015: InterContinental Hotels Group PLC (IHG)

InterContinental Hotels Group PLC (IHG), incorporated on May 21, 2004, is a global hotel company, operating seven brands internationally. IHG is the holding company. The principal activities of the Company are in hotels and resorts, with franchising, management, ownership and leasehold interests in over 4,400 establishments, with more than 658,000 guest rooms in over 100 countries and territories worldwide. IHG�� hotels brands include InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Hotel Indigo, Holiday Inn and Holiday Inn Club Vacations, Holiday Inn Express, Staybridge Suites, Candlewood Suites and Priority Club Rewards. It has four geographical segments: Americas, Europe, Asia, Middle East and Africa (AMEA), and Greater China. As of December 31, 2011, the pipeline totalled 1,144 hotels (180,484 rooms). In March 2012, the Company announced the launch of HUALUXE Hotels and Resorts in China. During the year ended 31 December 2011, it sold four hotels, three in the Americas region and one in the AMEA region. IHG also manages the hotel loyalty program, Priority Club Rewards. As of December 31, 2011, the Company has 3,832 hotels operate under franchise agreements; managed 637 hotels worldwide and owned 11 hotels. During 2011, the Company opened 241hotels (44,265rooms) and removed 98 hotels (33,078 rooms). IHG is focused on the three segments that together generate over 90% of branded hotel revenues: midscale (broadly 3-star hotels), upscale (4-star), and luxury (5-star). InterContinental Hotels & Resorts InterContinental Hotels & Resorts is IHG�� 5-star brand located in cities and resort destinations across more than 60 countries worldwide. Hotels under InterContinental Hotels & Resorts brand are principally managed by the Company. As of December 31, 2011, there were 169 hotels and 57,598 rooms. As of December 31, 2011, it had 51 hotels in development pipeline. Crowne Plaza Hotels & Resorts Crowne Plaza Hotels & Resorts is the IHG�� upscale 4-star segment, specializes in offering modern business and meeting facilities with a service style to provide productive and energising experiences to guests. The majority of hotels under Crowne Plaza Hotels & Resorts brand are principally operated under franchise agreements in the United States and Europe, and are managed by the Company. As of December 31, 2011, there were 387 hotels and 105,104 rooms. As of December 31, 2011, it had 108 hotels in development pipeline. Hotel Indigo Hotel Indigo provides guests with the refreshing design and service experience with a boutique hotel. The Hotels Indigo brand is principally operated under franchise agreements. As of December 31, 2011, there were 39 hotels and 4,564 rooms. As of December 31, 2011, it had 59 hotels in development pipeline Holiday Inn and Holiday Inn Club Vacations The Holiday Inn brand family consists of Holiday Inn, Holiday Inn Express and Holiday Inn Club Vacations. Holiday Inn and Holiday Inn Club Vacations is the midscale hotel brand. Focused on creating an atmosphere where guests can relax, the brand is designed to support both business and leisure travellers. The brand family operates under franchise agreements. As of December 31, 2011, there were 1,240 hotels and 228,256 rooms. As of December 31, 2011, it had 267 hotels in development pipeline. Holiday Inn Express Holiday Inn Express offers convenience and comfort. As of December 31, 2011, there were 2,114 hotels and 196,666 rooms. As of December 31, 2011, it had 470 hotels in development pipeline. Staybridge Suites Staybridge Suites is the Company�� upscale extended stay brand for guests on longer trips, offering studios and suites complete with full kitchens and separate sleeping and work areas in a sociable, family-like atmosphere. Properties under Staybridge Suites brand are operated under a mixture of franchise and management agreements. As of December 31, 2011, there were 179 hotels and 19,567 rooms. As of December 31, 2011, it had 95 hotels in development pipeline. Candlewood Suites Candlewood Suites is the Company�� midscale extended stay brand that gives its guests all the essentials they need for a home-like stay. Properties under Candlewood Suites brand are principally operated under franchise agreements. As of December 31, 2011, there were 285 hotels and 27,500 rooms. As of December 31, 2011, it had 94 hotels in development pipeline. The Company competes with Accor, Choice Hotels International, Inc., Hilton Hotels Corporation, Hyatt, Marriott, Starwood Hotels & Resorts Worldwide, Inc. and Wyndham Worldwide Corporation. Advisors' Opinion:

• [By Tony Reading]

  In this series, I'm assessing the boardrooms of companies within the FTSE 100 (UKX). I hope to separate the management teams that are worth following from those that are not. Today, I am looking at�InterContinental Hotels� (LSE: IHG  ) (NYSE: IHG  ) , the world's largest listed hotels group.

Best Asian Companies To Watch For 2015: Creso Exploration Inc. (CXT.V)

Creso Exploration Inc., an exploration stage company, engages in the exploration and development of mineral properties in Canada and Guatemala. It primarily explores for gold and silver, as well as for copper and zinc. The company�s principal mining exploration holdings include the Tyranite, Minto, and Duggan properties located in the Shining Tree mining camp of northern Ontario. Creso Exploration Inc. is headquartered in Montreal, Canada.

Best Asian Companies To Watch For 2015: FirstService Corporation (FSRV)

FirstService Corporation provides real estate related services to commercial, institutional, and residential customers in North America and internationally. The company operates in three segments: Commercial Real Estate Services, Residential Property Management, and Property Services. The Commercial Real Estate Services segment offers brokerage, property management and maintenance, valuation, project management, and corporate advisory services primarily on office, industrial, retail, and multi-unit residential properties to owners, investors, tenants, corporations, financial institutions, governments, and individuals. The Residential Property Management segment manages private residential communities, including condominiums, cooperatives, homeowner associations, and various other residential developments governed by multi-unit residential community associations. This segment provides a range of property management services comprising facility maintenance, landscaping, swim ming pool management, home service contracts, energy usage benchmarking and retrofit consulting, real estate sales and leasing, heating, air conditioning, and concierge services. The Property Services segment offers various residential and commercial services through delivery channels, such as contractor network, franchise networks, and branchises. It provides property preservation, maintenance, repair, and inspection services to residential mortgage lenders and servicers for properties in the delinquency and foreclosure process; residential and commercial restoration services serving the insurance restoration industry; residential and commercial painting, and decorating services; installed closet and home storage systems; exterior residential painting and window cleaning services; home repair and remodeling service franchise; home inspection; and residential floor coverings design and installation services. FirstService Corporation was founded in 1972 and is headquartered i n Toronto, Canada.

Advisors' Opinion:

• [By John Udovich]

  Midcaps CBRE Group Inc (NYSE: CBG) and Jones Lang LaSalle Inc (NYSE: JLL) are probably the better known real estate services stocks with the latter surging 12.36% yesterday on impressive earnings, but small cap stocks Kennedy-Wilson Holdings Inc (NYSE: KW) and FirstService Corporation (NASDAQ: FSRV) are also important real estate services providers that you may have overlooked. After all, real estate services stocks like the following would offer exposure to real estate by being invested in property as well as generating revenue from transactions, property management and other services: ��

• [By Seth Jayson]

  FirstService (Nasdaq: FSRV  ) reported earnings on April 26. Here are the numbers you need to know.

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

Best Asian Companies To Watch For 2015: PTB Group Ltd(PTB.AX)

PTB Group Limited provides turbine engine repair and overhaul services in Australia, New Zealand, the Pacific Islands, North America, Asia, Africa, and Europe. The company specializes in the repair and overhaul of two engine types, the Pratt & Whitney PT6A and Honeywell TPE331. It also trades in aircraft airframes, turbine engines, and related parts; provides finance for aircraft and turbine engines sold to customers; and leases, rents, or hires aviation parts, including whole airframes and engines. The company was formerly known as Pacific Turbine Brisbane Limited and changed its name to PTB Group Limited in December 2006. PTB Group Limited was founded in 2001 and is based in Brisbane, Australia.

Best Asian Companies To Watch For 2015: Advanced Cell Technology, Inc.(ACTC)

Advanced Cell Technology, Inc., a biotechnology company, focuses on the development and commercialization of human embryonic and adult stem cell technology in the field of regenerative medicine. Its embryonic stem cell research programs include cellular reprogramming, reduced complexity program, and stem cell differentiation research programs. The company?s cellular reprogramming involves in the development of therapies based on the use of genetically identical pluripotent stem cells generated by its cellular reprogramming technologies. Advanced Cell Technology, Inc. also generates stable cell lines with particular focus on blood lineage and vascular epithelial cell lines from hemangioblast cells. In addition, it is developing an autologous myoblast transplantation therapy to restore cardiac function in patients with advanced heart disease. The company?s stem cell-based therapy would provide treatment for a range of acute and chronic degenerative diseases. Further, it deve lops adult stem cell-based products that are specifically targeted at therapies for heart and other cardiovascular diseases. The company is headquartered in Marlborough, Massachusetts.

Advisors' Opinion:

• [By CRWE]

  Today, ACTC surged (+1.96%) up +0.0014 at $.0730 with 1,679,139 shares in play thus far (ref. google finance Delayed: 12:31PM EDT July 26, 2013).

  Advanced Cell Technology, Inc. previously reported the Data and Safety Monitoring Board (DSMB), an independent group of medical experts closely monitoring the company�� three ongoing clinical trials, has authorized the company to move forward with enrollment and treatment of remaining two patients in the third cohort of each of the three clinical trials. The decision follows an interim review by the DSMB six weeks after the first patient was treated in the third cohort of each trial. ACT will proceed with screening and enrollment for the patients who, in keeping with trial protocol, will be injected with 150,000 retinal pigment epithelial (RPE) cells derived from human embryonic stem cells (hESCs).

• [By John Udovich]

  As the the year comes to end, there is still a steady flow of interesting news coming from small cap biotech stocks like Organovo Holdings Inc (NYSEMKT: ONVO), Advanced Cell Technology, Inc (OTCMKTS: ACTC) and TNI BioTech (OTCMKTS: TNIB)�plus still largely private biotech companies like Genocea Biosciences (NASDAQ: GNCA), Retrophin (OTCMKTS: RTRX), Auspex Pharmaceuticals (NASDAQ: ASPX) and GlycoMimetics (NASDAQ: GLYC) who have filed to become the next potentially hot biotech IPOs���presumably some time early�next year. Just consider the following biotech news:

• [By John Udovich]

  Summer and the slow news for the market that usually comes with it�is over with and both stem cell researchers or small� cap stem cell stocks like Advanced Cell Technology, Inc (OTCBB: ACTC), Neuralstem, Inc (NYSEMKT: CUR), NeoStem Inc (NASDAQ: NBS), International Stem Cell Corp (OTCMKTS: ISCO)�and BioRestorative Therapies (OTCBB: BRTX) having news for investors and traders alike. Consider the following:

• [By CRWE]

  Today, ACTC has shed (-1.05%) down -0.0008 at $.0751 with 2,338,132 shares in play thus far (ref. google finance Delayed: 11:55AM EDT July 22, 2013), but don�� let this get you down.

  Advanced Cell Technology, Inc. previously reported the Data and Safety Monitoring Board (DSMB), an independent group of medical experts closely monitoring the company�� three ongoing clinical trials, has authorized the company to move forward with enrollment and treatment of remaining two patients in the third cohort of each of the three clinical trials. The decision follows an interim review by the DSMB six weeks after the first patient was treated in the third cohort of each trial. ACT will proceed with screening and enrollment for the patients who, in keeping with trial protocol, will be injected with 150,000 retinal pigment epithelial (RPE) cells derived from human embryonic stem cells (hESCs).

Best Asian Companies To Watch For 2015: Harleysville Group Inc.(HGIC)

Harleysville Group Inc., through its subsidiaries, engages in the property and casualty insurance business primarily in the eastern and midwestern United States. It underwrites personal and commercial property and casualty coverages, including automobile, homeowners, commercial multi-peril, and workers compensation. The company markets its insurance products through independent agents to individuals, and small and medium-sized businesses. Harleysville Group Inc. was founded in 1979 and is based in Harleysville, Pennsylvania. Harleysville Group Inc. operates as a subsidiary of Harleysville Mutual Insurance Company.

Best Asian Companies To Watch For 2015: Waterstone Financial Inc.(WSBF)

Waterstone Financial, Inc. operates as the holding company for WaterStone Bank that provides various banking services. It generates various deposit products, including checking accounts, savings accounts, money market deposit accounts, certificates of deposit, demand deposits, and negotiable order of withdrawal accounts. The company?s loan portfolio comprises one- to four-family residential mortgage loans; over four-family real estate loans; residential construction and land loans; commercial real estate loans; home equity loans and home equity lines of credit; commercial loans secured by accounts receivable, inventory, equipment, and real estate; and consumer loans. It operates eight banking offices and nine automated teller machines, including stand-alone automated teller machine facilities in Milwaukee, Washington, and Waukesha counties, Wisconsin. The company was formerly known as Wauwatosa Holdings, Inc. and changed its name to Waterstone Financial, Inc. in August 20 08. Waterstone Financial, Inc. was founded in 1921 and is based in Wauwatosa, Wisconsin. Waterstone Financial, Inc. is a subsidiary of Lamplighter Financial, MHC.

Does This Plan Help Fannie Mae and Freddie Mac Investors?

Another day, and another proposed plan on what to do with Fannie Mae and Freddie Mac. The latest plan from a group of Congressmen aims to wind down the two entities and potentially turn them into private insurers, while keeping the governement's hand in housing finance via Ginnie Mae. Would this new plan help or hurt the investors holding the preferred and commons shares?

In this segment of The Motley Fool's everything-financial show, Where the Money Is, Matt Koppenheffer and David Hanson discuss the new plan and share what they think is the most important thing to watch going forward.

Is Fannie Mae the best bet for 2014?
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Ocwen Steps To The Plate

The US real estate market is gaining some much needed momentum, and that’s great news for homeowners, real estate agents, and yes, stock market investors.

According to the National Association of Realtors, existing home sales were 10.7 percent higher in September than a year earlier. In addition, the average US home value was up 10 percent on a year-to-year basis, the 10th consecutive month of double-digit home price increases, the NAR reports.

“Affordability has fallen to a five-year low as home price increases easily outpaced income growth,” says Lawrence Yun, chief economist at the NAR. “Expected rising mortgage interest rates will further lower affordability in upcoming months.”

Investors are pouring into the real estate market, too.

According to RealtyTrac.com, investor-only property purchases have totaled 950,000 since the end of 2011, with a value of over $1 trillion.

More than 78 percent of those purchases were “clean-up buys” of either underwater homes or foreclosed homes that help the housing market to recover. With fewer distressed properties on the market, the mortgage market is dealing with fewer troubled homeowners, and as a result is seeing the greatest activity since 2008, the launching point of the Great Recession.

For stock investors, a healthier mortgage market means more robust profits for select companies ideally positioned in the real estate sector.

Here’s one vote for Ocwen (NYSE: OCN), an Atlanta-based mortgage loan servicer.

Ocwen is trading at $53 and offers all the signs of a show horse ready to jump out of the gate and add another 20 percent to 25 percent of stock appreciation in the next six months.

Some of those reasons are already listed above, as a healthier mortgage market should boost Ocwen, which saw revenues double in the third quarter of 2013, to $531 million, from $232 million ! one year earlier.

Ocwen did see some financial headwinds in the last quarter, but they should be temporary. Most of the trouble centered around the company’s $2.5 billion purchase of servicing rights (totaling $78 billion) from OneWest Bank, and its recent purchase of the assets of Homeward Residential and Residential Capital, which weighed against the bottom line.

Ocwen chief executive officer Bill Erbey, speaking at an October 31 earnings call to analysts and reporters, said third quarter results were negatively impacted by the purchases, but said the firm would rebound going forward, primarily due to the stable transition on the OneWest and ResCap purchases, and to a burgeoning mortgage market.

“Revenue was suppressed due to delays, that have now been resolved, in boarding the OneWest transaction,” he said. “[Q3 profit margins were] below historical levels due to the timing involved in transitioning ResCap and OneWest. We feel very comfortable that once we have completed the ResCap transition to the Ocwen technology platform, we will return to our historical margins.”

Recently, those margins had been off the charts. Ocwen has doubled its revenue inflows thanks to a mortgage market once again flexing its muscles, and also due to deals that add $200 billion in mortgage servicing rights to Ocwen’s portfolio.

Analysts point to increased servicing and sub-servicing fees, in addition to revenues on loans held for sale and other income, all positive factors that should remain stable over the next few quarters. Another “under the radar” profit center is loan modifications, where Ocwen wrote-up 32,051 loan modifications, up 14 percent on a year-to-year basis.

All in all, it’s an attractive package that’s raising some well-financed eyebrows. John Armitage, chief at London-based Egerton Capital, a London-based hedge fund with $11 billion in assets, chose Ocwen as one of his “highlight” stocks over t! he past m! onth.

Armitage says that Ocwen is ideally positioned in a stronger mortgage market, and is picking up contract after contract to service mortgage loans. All that contract activity should grow more abundant as the market continues to pick up momentum.

Then there’s Oppenheimer equity analyst Ben Chittenden, who agrees with company management that the less-than-stellar Q3 earnings were merely “timing related”.

“Although the results were somewhat disappointing from a quarterly perspective, we don’t think that it changes (Ocwen’s) long-term story and is more of a timing issue,” he says. Chittenden advises investors to use any share pricing softness as a sign to snap up shares of Ocwen.

Overall, the Ocwen story seems like a short-term slowdown against the backdrop of a long-term growth story, largely tied to a once-again vibrant mortgage market.

Historically, that’s a buying opportunity for opportunity-minded investors. With banks and lenders increasing their mortgage activity, Ocwen looks like a nice addition to your holiday stocking this year.

Brian O’Connell is an investment analyst at Investing Daily. He has appeared as an expert financial commentator on CNN, NPR, Fox News, Bloomberg, CNBC, C-Span, CBS Radio, and many other media broadcast outlets.

Prospera Acquires TCA Financial Group

Dallas-based boutique broker-dealer firm Prospera Financial Services announced on Thursday that it has acquired TCA Financial Group in Charlotte, N.C. TCA is a full service broker-dealer founded in 2004. The acquisition means Prospera will be able to increase its footprint in the mid-Atlantic region.

"It made sense,” said Tim Edwards, principal and executive vice president at Prospera, when asked about the reasons for the acquisition. “It was an opportunity for us to expand our footprint with quality advisors that have a high production per rep and a similar culture."

TCA will close its broker-dealer and operate as an OSJ under Prospera, but will retain its name and branding. The acquisition also comes with an expanded clearing relationship, as TCA is on the Pershing platform.

“TCA was at a size in which regulation was becoming more and more a part of their cost of doing business,” Edwards added. “We said ‘look, concentrate on your advisors and clients,” and this affords them the opportunity to do that.”

Edwards noted that Prospera is a boutique firm, and will remain so. He doesn’t see it ever becoming a firm “with thousands of reps.” That said, the acquisition of firms “between $5 million and $10 million, or even $5 million and $20 million” is part of a defined growth strategy.

“We have a growth strategy, and part of that growth strategy is through acquisitions,” he concluded. "There is a lot of opportunity right now.”

Top 5 Performing Stocks To Own For 2014

Founded in 1982, Prospera Financial Services was named Broker-Dealer of the Year by Investment Advisor in 2009, 2010 and 2012.

3D Printer Stocks Print Some Red Ink Plus Other News (XONE, SSYS, DDD & MDDD)

We are two trading weeks into the new year and the 3D printing sector along with 3D printer stocks like ExOne Co (NASDAQ: XONE), Stratasys, Ltd (NASDAQ: SSYS), 3D Systems Corporation (NYSE: DDD) and Makism 3D Corp (OTCBB: MDDD) have been printing their share of red ink for investors – despite the fact that 3D printing got  plenty of attention at last week's Consumer Electronics Show in Las Vegas while the broader stock market rally has largely held up. With that in mind, here is the latest 3D printer stock or sector news you need to be aware of:

ExOne Updates 2013 Revenue Expectations. On Tuesday, ExOne Co announced that it expects 2013 revenue to be in the range of $40 million to $42 million verses a previous revenue guidance of approximately $48 million. The shortfall is being blamed on machine sales not yet completed for customers in Russia, India, Mexico and France because some of these sales involved approval processes that were deferred into 2014.  The Chairman was quick to point out that the company has not lost a single order and expects the sales to be completed in the first half of this year. He concluded by saying: "We remain confident that our previously stated long-term 40% to 50% annual organic revenue growth goal is achievable again in 2014." Wall Street opinion is mixed, with Weston Twigg, an analyst at Pacific Crest Securities, writing in a research note:

"When we launched coverage of ExOne, we warned that the company faced execution risks as a small, unproven entity. We would remain on the sidelines until ExOne can demonstrate better execution toward its relatively aggressive growth goals."

ExOne Co is now down 14.8% over the past three trading days, but the stock is still up 114.4% since last February.

Stratasys Ltd Issues Guidance. On Tuesday, Stratasys Ltd also issued its 2014 guidance, giving revenue guidance of $660 to $680 million, non-GAAP net income guidance of $113 to $119 million (or $2.15 to $2.25 per diluted share) and GAAP net income guidance of $10.5 to $19.9 million (or a $0.20 to $0.38 per diluted share). Apparently, the analysts' consensus estimate for revenues was $656.83 million and EPS of $2.33. Stratasys Ltd reported that operating expenses are projected to expand significantly in 2014 thanks to investments in sales and marketing programs to "drive future market adoption," as well as by higher R&D investments to fund technology innovation and new product development. However, Stratasys Ltd also expects Non-GAAP net income to be derived disproportionately from the second half of fiscal 2014, "driven by the projected timing of operating expenses, as well as the projected timing and success of new product introductions and their corresponding ramp in sales." Stratasys Ltd is down 8.1% over the past three trading days, but shares are up 45.7% over the past year and up 68.6% since December 2012.

Stratasys Ltd Unveils "Replicator Mini" 3-D Printer with Built-in Camera. Bre Pettis, the co-founder of consumer 3-D printer maker MakerBot, a division of Stratasys, spoke to a standing-room-only crowd at the Consumer Electronics Shop in Las Vegas last week. He talked about his intention to get a MakerBot into every school in the US and then he introduced the "Replicator Mini," a consumer printer that will cost $1,375 and will ship in the spring; along with the "Replicator Z18," that will also ship in the Spring for $2,899.   3D Systems Corporation Has a Buy Reiterated. On Monday, Deutsche Bank's Sherri Scribner reiterated a Buy on 3D Systems Corporation and raised her price target from $95 to $115. She noted:

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"DDD has introduced a substantial number of new products and services at EuroMold and CES over the past month and a half. In addition, the company has been active this quarter with acquisitions, including The Sugar Labs (edible food), Figulo (ceramics), Village Plastics and Xerox's Oregon-based solid ink team. We believe the company will see additional revenue growth from these new product introductions and from the inclusion of recent acquisition, and we have raised our revenue estimates $50M and $60M for FY14 and FY15, respectively. Given our growth expectations for the industry and DDD's strong technology position, DDD remains one of our top picks for 2014."

In addition, 3D Systems Corporation attended the 16th Annual Needham Growth Conference on Wednesday with the presentation available on the company IR page here. 3D Systems Corporation is only down 5% this week but its still up 123.1% over the past year and up 583.6% since June 2011.

Industrial 3D Printer Market is Much Bigger Than the Consumer Market. Sherri Scribner was also recently on CNBC where she said that the industrial market will continue to be a bigger market than consumers for 3D printing. She added that Hewlett-Packard Company (NYSE: HPQ) will get into 3D printing on the consumer side, but then she added that there are seven different technologies under the so-called "additive manufacturing" umbrella and HP would have a place in just one of those technologies. Makism 3D Corp Bounces Back. Small cap Makism 3D Corp is a new 3D printing stock that is based in Cambridge, United Kingdom, that offers a 3D printer solution that maximizes the range of available printing materials to include ABS plastic, Nylon™, polycarbonate, high impact polystyrene, polyvinyl alcohol and others. Their flagship product is the Wideboy which features high quality British/German engineered components and (unlike competitor 3D printers) comes ready to use directly out-of-the-box:

As I mentioned last week, Makism 3D Corp along with several other OTC stocks saw trading suspensions near the end of last year; but of the stocks that got suspensions, only MDDD largely bounced back for investors while the others lost most of their value. Nevertheless, Makism 3D Corp did sink some 24% yesterday, basically giving back most of the gains made on Monday and Tuesday, on overall concerns about the 3D printing sector.

​Changing the Landscape for Colorectal Cancer Screening

Molecular diagnostics companies are continuing to show a lot of promise. Currently, we are taking a look at Exact Sciences (EXAS) – one of the best up-and-coming plays in the colorectal cancer (CRC) space. We will also look at a much newer company that is gaining a lot of traction in Europe – VolitionRx (VNRX).

Undoubtedly, this is a market with large potential and we believe this will represent one of the fastest areas of growth for in in vitro cancer diagnostics. However, new tests will want approval by the FDA/EMA and some sort of competitive advantage over existing blood/fecal tests that are used as screeners for colonoscopy.

Colorectal Cancer Overview

CRC is the second leading cause of death related to cancer. Survival of CRC patients is pegged at ~2/3, and this is often due to late detection of the cancer in patients. Screening for this disease has become a big priority, and it is the reason behind the increasingly large number of colonoscopies that are being performed on an older population. Other risk factors, including genetic predisposition to CRC and type-2 diabetes, are also considered.

However, these procedures can be incredibly expensive. Although many patients are insured by the time they are going in for colonoscopy screening, low patient compliance and increased pressure on soaring healthcare costs creates more need for effective and scalable in vitro testing for colorectal cancer. Millions need to be screened every year, which makes low relative cost and scalability necessary for market dominance.

The current options are quite limited. Perhaps the most common screener test right now is the fecal occult blood test (FOBT), which identifies the presence of blood in a stool sample. However, these tests have a very high false positive rate and are generally considered unreliable. They are also incapable of detecting the presence of precancerous polyps, which start as benign growths but should be removed before a possible transition into malignancy.

Cologuard

Exact Sciences has developed a non-invasive in vitro test to challenge the colonoscopy/FOBT routine that is currently used. It is called Cologuard, and it is a test that uses genetic markers that are related to colorectal cancer and precancer.

Cologuard is very convenient for both doctors and patients, and it doesn't require patients to go on a certain diet – or to prepare their bowels prior to the actual test. It would also be significantly less expensive than a colonoscopy, which can cost about $10,000 when performed in a hospital. Because of these basic but important advantages, we'd expect adoption of Cologuard to be quite rapid given that it becomes FDA approved as a colorectal cancer test. Patient compliance and ease-of-use are incredibly important factors to consider, and they can make or break medical products.

Cologuard's most recent data, from a ~10,000 patient trial (Deep-C) showed 92% sensitivity to colorectal cancer and a 42% sensitivity to pre-cancerous polyps and 87% specificity. We believe that they still represent a huge upgrade from FOBT figures, which is a very poor indicator because of its sensitivity.

Many sales figures have been thrown around, and we believe that the $100-200 M range is quite reasonable for year 2016 given that the development of Cologuard continues to progress according to the company's expectations. The growth could be quite amazing after the first few years, since it will take a while for physicians to get used to a new test.

Exact Sciences is putting this product through the final stages of the premarket approval (PMA) regulatory pathway. There will be an advisory committee on March 26, 2014.

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VolitionRx NuQ Panels

VolitionRx is another CRC-focused diagnostics company that is developing and looking to commercialize its NuQ® suite of high throughput, non-invasive blood tests for cancer. These products are based on the company's proprietary Nucleosomics® technology, which detects specific changes in genetic expression that are associated with certain forms of cancer. These include, but are not limited to: pancreatic, lung, colon, and breast cancers.

NuQ® products will be based on a panel of assays, which will detect specific modifications in gene expression. Because of the scalability of in vitro diagnostics, these can be used in larger patient populations at a lower cost, making them an efficient alternative to current diagnostic procedures. Data collected thus far suggest that the tests show equal, if not greater, ensitivity and specificity to existing fluid-based tests on the market.

Patient Compliance

Another important factor that is often ignored is the matter of patient compliance. Colonoscopy compliance is particularly low (<40%), since it is an embarrassing and painful procedure that also requires extensive preparation. Fecal occult blood test compliance is also supposed to be quite low, with estimates usually ranging between 40-60% - possibly due to the embarrassing nature of the test. Blood test compliance is usually very high (>80%), which bodes well for Cologuard and NuQ.

CRC Diagnostic Capacity

Diagnostic tests are generally measured with two main statistical parameters: sensitivity, and specificity. Sensitivity (the true positive rate) is expressed as a % of correct positives identified by the test. Specificity (the true negative rate) is the opposite, and is a % of correct negatives identified by the test.

Here are the estimated sensitivity and specificity rates for currently-used and developing CRC tests:

	CRC Sensitivity	Precancer Sensitivity	CRC Specificity
Fecal Occult Blood Test (FOBT)	77%	27.6%	57%
Cologuard (Exact Sciences)	92%	42%	87%
2x NuQ® Assay (Volition)	85%	50%	85%

FOBT data was taken from this abstract (link)

Cologuard data was taken from Exact's Phase III top-line data release (link)

NuQ 2x panel data was taken from VolitionRx's most recent press release (link)

These datasets aren't perfect, although they imply that Cologuard and NuQ assays should eventually take market share away from FOBT due to superior detection of both CRC and pre-CRC.

Valuation

There is a huge valuation gap between VolitionRx and Exact Sciences. The market cap of EXAS is $1.1 B and the market cap of VolitionRx is $25 M. This is likely because Exact has more data, and is on the verge of a potential FDA approval. VolitionRx is on the verge of approval in the EU, where they will initially market the product.

Takeaway

We are optimistic on molecular diagnostic tests in colorectal cancer, and we believe there is a lot of upside potential with leaders in this sector. Although it may take a few more years to play out, we believe that there is huge potential to replace FOBT and other in vitro diagnostic tests for CRC screening. These new genetic tests may also be used along with current tests, although we will hopefully see them as a standard precursor to colonoscopy 5 years from now.

IRS Scandals Fueled by Lack of Funds, Taxpayer Advocate Says

The Internal Revenue Service’s internal watchdog says “unstable and chronic underfunding” of the agency is “the major problem facing the IRS today.”

In its congressionally mandated 2013 annual report, released Thursday, National Taxpayer Advocate Nina Olson offers details on the 25 “most serious” problems — the law requires her to identify at least 20 — and funding issues are seen as a gateway to broader problems, including the scandal involving targeting of politically conservative groups.

The targeting of Tea Party and other groups at odds with the Obama administration policy is addressed in a technical sense in the report’s 15th problem, which details the IRS' erroneous revocation of exempt status for tax-exempt organizations.

However, in its very first plank, the taxpayer advocate’s report deals with the issue in calling on its parent agency to adopt a taxpayer bill of rights whose existence might forestall the kind of tampering that embroiled the agency and led to the early retirement or resignation of Exempt Organizations director Lois Lerner and two other senior officials.

In a footnote to the bill of rights portion of the report — many of the report’s sections are hundreds of pages, and its executive summary alone weighs in at 76 pages — Olson cites a previous analysis from her office arguing that the IRS’ political targeting violated eight out of 10 items in her bill of rights.

“Had there been a published taxpayer bill of rights, organizations applying for tax-exempt status, IRS employees processing their applications, IRS executives overseeing the program and congressional offices receiving complaints likely would have flagged the inconsistencies between the applicants’ rights and the IRS’ actions more quickly," the report says. "There is no guarantee that would have happened, of course, but the existence and broad awareness of a taxpayer bill of rights would have substantially increased the odds that the problems would have surfaced and been addressed sooner.”

For example, item No. 4 of her proposed bill of rights is “the right to challenge the IRS’ position and be heard,” which includes receipt of a written response from the agency if it rejects a challenge; and item No. 5 is “the right to appeal an IRS decision in an independent forum,” which again includes a written response if an appeal fails and the right to further court challenges.

The Office of the Taxpayer Advocate, with some 2,000 employees, doesn’t seem to address its own role or absence thereof in the political targeting crisis. In May, in the heat of the scandal, former Democratic Sen. Bob Kerrey, an author of 1990s legislation revamping the IRS, criticized Olson’s office for failing to pay attention to complaints from conservative groups having difficulty with their tax-exempt status:

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“That was the whole idea of the creation of the taxpayer advocate — that somebody could intervene on behalf of the taxpayer, and it looks like the intervention didn’t happen,” Kerrey told Politico at the time.

From Olson’s point of view, the key underlying problem is the IRS underfunding. She cited three years of across-the-board budget reductions and the severe recent effects of sequestration. The result has been a situation in which the can answer just 61% of the 109 million annual calls from taxpayers, who waited an average of 17.6 minutes to talk to a customer representative in 2013.

Because it is so pressed, the agency will now answer only “basic” questions from taxpayers accessing representatives by phone, mail or walk-in to one of its agencies and will not be answering any tax law questions (even “basic” ones) after the coming tax season ends in April.

"At the risk of vast understatement, it is a sad state of affairs when the government writes tax laws as complex as ours — and then is unable to answer any questions beyond ‘basic’ ones from baffled citizens who are doing their best to comply,” Olson writes.

Some of the other “most serious” issues identified by Olson this year included the difficulty of complying with U.S. tax law for Americans living abroad and the need for tax guidance to assist Bitcoin users.

The independent office within the IRS has labored largely in obscurity since its creation in 1996 as part of the Taxpayer Bill of Rights act, though each year it issues an annual report on systemic problems within the IRS. It achieved greater than usual notoriety last year as a result of one attention-getting recommendation that U.S. tax rates could be cut 44% without any ensuing loss of revenue.

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Check out IRS Says 44% Cut in Tax Rates OK With Us on ThinkAdvisor.

Is Verizon Stock Ready to Rise?

With shares of Verizon (NYSE:VZ) trading around $49, is VZ an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Verizon is a provider of communications, information and entertainment products and services to consumers, businesses and governmental agencies. It operates in two primary segments: Verizon Wireless and Wireline. Verizon Wireless's communications products and services include wireless voice and data services and equipment sales, which are provided to consumer, business and government customers across the United States. Wireline's communications products and services include voice, Internet access, broadband video and data, Internet protocol network services, network access, long distance, and other services.

Verizon delivered a profit and beat Wall Street's expectations, however, it came-up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. As consumers and companies strive to communicate at increasing rates, Verizon stands to see a rising profits as a main provider. Look for rising communications, information, and entertainment to drive profits for Verizon.

T = Technicals on the Stock Chart are Mixed

Verizon stock has been surging higher in recent years. The stock is now trading at prices not seen for nearly a decade. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Verizon is trading between its key averages which signal neutral price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Verizon Options	12.71%	3%	1%

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

	Put IV Skew	Call IV Skew
August Options	Steep	Average
September Options	Steep	Average

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

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

E = Earnings Are Increasing Quarter-Over-Quarter

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

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	14.06%	15.25%	-107.21%	14.29%
Revenue Growth (Y-O-Y)	4.32%	4.17%	5.66%	3.92%
Earnings Reaction	-1.52%*	2.76%	0.58%	2.37%

Verizon has seen rising earnings and revenue figures over the last four quarters. From these numbers, the markets have mostly been pleased with Verizon’s recent earnings announcements.

* As of this writing

P = Excellent Relative Performance Versus Peers and Sector

How has Verizon stock done relative to its peers, AT&T (NASDAQ:EXPE), T-Mobile (NYSE:TMUS), Sprint Nextel (NYSE:S), and sector?

	Verizon	AT&T	T-Mobile	Sprint Nextel	Sector
Year-to-Date Return	14.88%	5.90%	23.94%	6.17%	13.47%

Verizon has been a relative performance leader, year-to-date.

Conclusion

Verizon provides communications products and services through a variety of mediums to consumers and companies around the world. Recently, the company issued an earnings report that was below expectations. The stock has been surging higher over the last few years and is now trading at prices not seen for over a decade. Over the last four quarters, earnings and revenue figures have been on the rise which has led investors to be mostly pleased with the company. Relative to its peers and sector, Verizon has been a year-to-date performance leader. WAIT AND SEE what Verizon does in the coming weeks.