Matrix Advisors Value Fund on the Mend

When you're a value investor, it pays to be patient. Consider David Katz, who has run Matrix Advisors Value since 1996. Recently, the fund has benefited from stocks, such as Charles Schwab and Teva Pharmaceutical, that Katz bought in 2011, when the market was in turmoil because of worries about Europe's future. The picks have helped put Matrix in the top 2% of large-company value funds over the past year.

SEE ALSO: 8 Great Dividend Mutual Funds

Katz relies on computers as well as hands-on analysis to find bargains with attractive prospects. He starts by screening the 1,500 largest U.S.-traded companies for such measures as price relative to earnings and dividend yield. The computer kicks out a fair value for each firm. Katz considers any stock that trades for at least one-third less than that fair-value figure. About 75 to 100 names pass muster. Katz buys the 30 to 40 most-promising stocks. He sells when a stock reaches its fair value, or if he sees deterioration in the quality of a firm's balance sheet or its earnings prospects.

Matrix's long-term record has been erratic. After beating Standard & Poor's 500-stock index each year from 1999 through 2003, the fund lagged the market in seven of the next nine years. But Katz believes the fund, which holds just $78 million in assets, is poised to continue its rebound. As long as investors focus on individual companies rather than big-picture issues, he says, such solid, well-priced holdings as Microsoft and JPMorgan Chase should do well.

The Fed’s Dreaded Dilemma: A Weak Economy Plus Inflation

While the economy contracted at a greater than expected 2.9 percent in the first quarter of 2014, in May the consumer price index (CPI) rose at an annualized 2.1 percent, its highest level since October 2012. Energy prices were up 5.8 percent from a year earlier, while food prices rose 2.1 percent. Even the Federal Reserve's own preferred measure of inflation, the personal consumption expenditures (PCE) index, popped up to 1.8 percent last month.

The fact that the Fed's PCE index is showing inflationary pressure is significant, since it is essentially designed to lowball price increases. The CPI gives a 31 percent weighting to shelter costs and a 17 percent weighting to transportation (read as rent and gasoline), which the PCE basically cuts in half. By reducing the volatility of its preferred inflation gauge, the Fed essentially gives itself the leeway to maintain a looser policy longer.

But the fact that the PCE is on the rise leaves the Fed in a conundrum, having said for years now that it would act when inflation reaches an annualized 2 percent, a level that is fast approaching. The primary policy tool at its disposal for addressing inflationary pressures is interest rates, a lever the Fed probably doesn't want to press just yet. Despite the fact that inflation is clearly picking up, consumer spending has actually contracted over the past two months on an inflation-adjusted basis and is growing well below the pre-recession average of 5 percent. Incomes were also up by just 3.5 percent last month, another metric which typically ran above 5 percent for much of the two decades prior to 2008.

As we've often said in the past, the Fed has historically been slow to pull the trigger on increasing interest rates and contributed to the formation of bubbles in the economy. While some Fed officials, such as Charles Plosser, the president of the Federal Reserve Bank of Philadelphia, have said that the ba! nk should be aggressive on rates, this is the classic dreaded dilemma. It's been created by the Fed's dual mandate of working towards full employment while maintaining price stability. If it acts now to address rising inflation by raising rates, the Fed runs the risk of stalling out what has been an anemic recovery. If you lived through the 1970s, the term stagflation (a stagnant economy combined with inflation) is likely coming to mind about now, though we're nowhere near those levels yet.

Still, it should come as little surprise that the inflation debate is becoming more heated with forecasters and economists from Barclays (NYSE: BCS) to BlackRock (NYSE: BLK) sounding the alarm on the rising prices and a changing investment environment.

To break stagflation's back, famous Fed chairman Paul Volcker hiked interest rates to unprecedented levels. In 1981 the federal funds rate peaked at 20 percent and the prime rate rose to 21.5 percent. We're unlikely to see such a scenario again, but some are saying that we're likely to see rate increases by mid-2015. That, in turn, could bring the great bond run to a grinding halt as yields rise and bond prices fall. We've already seen that effect in action when the spending and inflation data was released last week, pushing the 10-year Treasury yield up to 2.625 percent and pushing gold prices up by nearly 3 percent on the day of the release.

Clearly, the time for decisive action is approaching if the Fed truly means to keep inflation tame. At this point, the deciding factor will likely be economic growth in the next half of the year; if it comes in at or above 3 percent – a reading actually well below the general consensus – look for a rate by mid-2015. Otherwise, low interest rates are likely to persist for some time yet to come, allowing inflationary pressures to continue building in the US economy.

4 Energy Services Stocks to Sell Now

Popular Posts: 10 Oil and Gas Stocks to Buy Now15 Oil and Gas Stocks to Sell NowBiggest Movers in Energy Stocks Now – NGLS EXXI WTI TPLM Recent Posts: Biggest Movers in Capital Goods Stocks Now – ATRO APOG AIR TEX Hottest Healthcare Stocks Now – PCRX ISRG SHPG BIIB Hottest Financial Stocks Now – AB NBG BX BOKF View All Posts 4 Energy Services Stocks to Sell Now

The overall ratings of four energy services stocks are down on Portfolio Grader this week. Each of these rates a “D” (“sell”) or “F” overall (“strong sell”).

Tenaris S.A. Sponsored ADR () is on the decline this week, earning a D (“sell”) after receiving a C (“hold”) last week. Tenaris manufactures and supplies steel pipe products and related services for the world’s energy industry. For Portfolio Grader’s specific subcategory of Sales Growth, TS also gets an F. .

This week, Dril-Quip, Inc. () drops from a C to a D rating. Dril-Quip designs, manufactures, sells, and services offshore drilling and production equipment to be used in deepwater, harsh environment, and severe service applications. The stock currently has a trailing PE Ratio of 25.40. .

Hornbeck Offshore Services, Inc. () ratings are on the decline this week as the company earns an F (“strong sell”). Last week, it received a D (“sell”). Hornbeck Offshore Services provides marine transportation services to the offshore oil and gas industry. The stock gets F’s in Earnings Revisions and Cash Flow. As of June 26, 2014, 14.1% of outstanding Hornbeck Offshore Services, Inc. shares were held short. .

Helix Energy Solutions Group, Inc. () earns an F this week, moving down from last week’s grade of D. Helix Energy Solutions is a marine contractor and operator of offshore oil and gas properties and production facilities. The stock gets F’s in Cash Flow and Margin Growth. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Micron Gains On Upbeat Earnings; Elizabeth Arden Shares Slide

Related EDN Utility Sector Rises; Elizabeth Arden Shares Slide Over 3.6% Mid-Morning Market Update: Markets Mostly Higher; Walgreen Profit Misses Estimates

Midway through trading Tuesday, the Dow traded up 0.11 percent to 16,955.76 while the NASDAQ surged 0.66 percent to 4,397.40. The S&P also rose, gaining 0.20 percent to 1,966.53.

Leading and Lagging Sectors

Utilities shares rose around 0.45 percent in trading on Tuesday. Meanwhile, top gainers in the sector included Empresa Distribuidora y Comercializadora Norte S.A. (NYSE: EDN), up 4.7 percent, and Korea Electric Power (NYSE: KEP), up 3.9 percent.

Basic materials sector was the top loser in the US market on Tuesday. Top decliners in the sector included Kraton Performance Polymers (NYSE: KRA), Molycorp (NYSE: MCP), and AuRico Gold (NYSE: AUQ).

Top Headline

Walgreen Co (NYSE: WAG) reported weaker-than-expected fiscal third-quarter earnings.

Walgreen’s quarterly profit increased to $722 million, or $0.75 per share, from a year-earlier profit of $624 million, or $0.65 per share. Its adjusted earnings gained to $0.91 from $0.85 per share.

Its net sales surged 5.9% to $19.40 billion from $18.31 billion. However, analysts were projecting earnings of $0.94 per share on sales of $19.49 billion.

Equities Trading UP

Vertex Pharmaceuticals (NASDAQ: VRTX) shares shot up 42.73 percent to $95.07 after the company reported that its two phase 3 studies of Lumacaftor in combination with ivacaftor met the primary endpoint.

Shares of Wix.com (NASDAQ: WIX) got a boost, shooting up 10.30 percent to $19.60 after the company announced that it had surpassed 50 million registered users worldwide.

Micron Technology (NASDAQ: MU) shares were also up, gaining 5.07 percent to $32.85 after the company reported better-than-expected fiscal third-quarter earnings. Micron posted its adjusted earnings of $0.79 per share, beating analysts’ estimates of $0.69 per share.

Equities Trading DOWN

Shares of Elizabeth Arden (NASDAQ: RDEN) were 4.77 percent to $26.95 on restructuring news. The company announced its plans to reduce jobs and exit some retail doors. It also announced the closing of its Puerto Rico affiliate.

Walgreen Co (NYSE: WAG) shares tumbled 1.84 percent to $72.37 after the company reported weaker-than-expected fiscal third-quarter earnings.

Carnival (NYSE: CCL) was down, falling 1.40 percent to $38.86 after the company reported its Q2 earnings of $0.10 per share and raised its forecast.

Commodities

In commodity news, oil traded up 0.17 percent to $106.35, while gold traded up 0.08 percent to $1,319.50.

Silver traded up 0.46 percent Tuesday to $21.06, while copper rose 0.19 percent to $3.15.

Eurozone

European shares were mostly lower today.

The eurozone’s STOXX 600 declined 0.12 percent, the Spanish Ibex Index dropped 0.05 percent, while Italy’s FTSE MIB Index fell 0.28 percent.

Meanwhile, the German DAX rose 0.20 percent and the French CAC 40 gained 0.06 percent while UK shares slipped 0.10 percent.

Economics

The ICSC–Goldman Sachs store sales index gained 2% in the week ended Saturday versus the earlier week.

The Johnson Redbook retail sales index declined 1.7% in the first weeks of June versus May.

The FHFA house price index remained unchanged in April, versus economists’ expectations for a 0.50% growth.

US home prices increased 1.1% in April versus March, according to S&P/Case-Shiller's composite index. After seasonal adjustments, US home prices gained 0.2% in April. The S&P/Case-Shiller home price index rose to a reading of 168.71 in April, versus a prior reading of 166.80. However, economists were expecting a reading of 169.09.

Sales of new US homes rose at an annual rate of 504,000 in May, versus economists’ expectations for a 439,000 gain.

The Conference Board's consumer confidence index rose to 85.20 in June, versus a previous reading of 83.00. However, economists were expecting a reading of 83.50.

The Richmond Fed manufacturing index fell to 3.00 in June, versus a prior reading of 7.00. However, economists were expecting a reading of 7.00.

Posted-In: Earnings News Emerging Markets Eurozone Futures Economics Intraday Update Markets Movers

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Home prices jump nearly 11% in April

NEW YORK (CNNMoney) Home prices jumped nearly 11% in April , and are now up more than 22% from the bottom three years ago.

Still, they are 18% below the peak set in July 2006, according to S&P/Case-Shiller. And price gains are slowing.

"Although home prices rose in April, the annual gains weakened," says David Blitzer of S&P Dow Jones Indices. "Last year some Sunbelt cities were seeing year-over-year numbers close to 30%, now all are below 20%."

Low mortgage rates, which the Federal Reserve is expected to keep reined in through mid-2015, and gains in the job market should continue to help the housing market, according to Blitzer.

But don't get too comfortable.

Home sales are being supported by all-cash buys and low supply, said Blitzer. And he says qualifying for a mortgage is still a problem.

"First time home buyers are not back in force," he said.

Expedia Inc. (EXPE): Itinerary - $90 says Susquehanna (but maybe more)

Expedia Inc. (NASDAQ:EXPE) shares are travelling higher today, up more than $2.50 as we type, The 3.5% move up comes compliments of an upgrade from Susquehanna. The broker says the stock now gets a "Positive" rating versus yesterday's "Neutral" recommendation.

Analyst, Brian Nowak put a $90 price-target on EXPE along with his upgrade – potential upside to target of 16.69% as of this keystroke, not including the 0.8% dividend.

Expedia operates as an online travel company in the United States and internationally. It provides travel products and services to leisure and corporate travelers, offline retail travel agents, and travel service providers through a portfolio of brands, including Expedia.com, Hotels.com, Hotwire.com, Expedia Affiliate Network, Classic Vacations, Expedia Local Expert, Egencia, Expedia CruiseShipCenters, eLong, and Venere.com.

[Related -Expedia, Inc. (EXPE) Q1 Earnings Preview: Double Beats Have Been Doubly Positive for EXPE]

Nowak believes the company's prospects are discounted by his peers on the street. He pronounced, "Our updated breakdown of EXPE's 3 main businesses (Travelocity, Trivago, and "core") shows how Street EPS numbers are 3% and 4% too low in '14 and '15 even using conservative assumptions."

To get to $90, the analysts wrote, "We raise our target multiple to a 25% premium based on faster EPS growth (19% the next 3 years) and see upward revisions, execution, and faster growth driving outperformance."

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It's clear; Nowak's upgrade and price-target are earnings based calls.

As it is now, Wall Street has consensus EPS estimates of $3.84 and $4.47 for 2014 and 2015, respectively. Minimally, Nowak believes the numbers will be closer to $3.96 this year and $4.60 next year, which is year-over-year growth of 16.16%.

To hit $90 based on the updated, minimum earnings, according to Susquehanna would require investors to pay 19.57 times earnings-per-share (EPS). In the last half-decade, Expedia's average price-to-earnings ratio (P/E) was 22.19 with a range of 6.29 to 68.49. During the same timeframe, EXPE earnings contracted by an average annual rate of -5.71%. That means investors have been willing to pay up for the internet service provider.

A 25% premium to earnings growth as Nowak suggests, would translate into a P/E of 20.2 using our updated, hypothetical EPS; providing some upside to the $90 target at $92.92.

Overall: If Brian Nowak has made the correct call on the street under-projecting Expedia Inc. (NASDAQ:EXPE) earnings power, then $90 should be achievable based on EXPE's recent P/E history. 

United Technologies Corporation (UTX): Ready to Fly Says Goldman

Forget about The Boeing Company (NYSE:BA) and buy United Technologies Corporation (NYSE:UTX), so says Goldman Sachs. Analyst, Noah Poponak upped the aerospace company to "Buy" from "Neutral" with a fresh, new price-target of $138 – upside potential of 19.76% to target.

United Technologies Corporation provides high technology products and services to the building systems and aerospace industries worldwide. The Company operates in six segments: Otis, Carrier, UTC Fire & Security, Pratt & Whitney, Hamilton Sundstrand and Sikorsky.

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Otis, Carrier and UTC Fire & Security serve customers in the commercial, government infrastructure and residential property sectors worldwide. Carrier also serves commercial, industrial, transport refrigeration and food service equipment customers. Pratt & Whitney, Hamilton Sundstrand and Sikorsky primarily serves commercial and government customers.

Poponak writes, "We believe the end-market stars are aligning for United Technologies. The company is well positioned in a strengthening Commercial Aerospace aftermarket, it is a market leader in its non-residential construction market, and its largest profit generators in the European construction markets appear to be bottoming. Pension and FX are moving to tailwinds, there is upside to consensus estimates, and valuation is attractive."

[Related -United Technologies Corporation (NYSE:UTX): How Pension Shift Will Drive EPS?]

The analyst targets a price-to-earnings (P/E) ratio of 17.6 on his 2015 earnings-per-share (EPS) estimate of $7.84 to make the $138 target. It is no coincidence that Poponak picked the target P/E, it is the industry average.

However, United Technologies' average P/E during the last half-decade was 15.50 with a range of 8.68 to 18.89. At its average P/E, UTX would price out at $121.52. That being written, the aerospace company's annual EPS growth for the last five years was 9.23%, which means the industrial goods company tends to trade at a 68% premium to the bottom line's expansion.

Using Goldman's 2015 estimate and 2014's consensus EPS outlook of $6.82, UTX's profits per share would grow 14.96% year-over-year (YoY). Applying the typical P/E to earnings to premium translates to a price-to-earnings ratio of 25.13. That requires Wall Street to pay well beyond United's recent range, but if they did, $138 would be small compared to $197.

Overall: It wouldn't be too much of a stretch for United Technologies Corporation (NYSE:UTX) to trade at 17.6 times earnings and hit Noah Poponak's $138, provided UTX makes his 2015 estimate of $7.84. 

An Easy Way to Invest in Pre-IPO Tech Firms

IPOs can generate strong returns, especially for investors who acquire shares before the public offering. But getting in at a company’s early stages can be difficult, and assembling a diversified portfolio of pre-IPO firms requires large amounts of capital.

Keating Capital (KIPO), though, helps investors overcome these challenges. The Denver-based group’s closed-end fund focuses on pre-IPO investing. According to Tim Keating, the firm’s CEO, “What that means in plain English is that we provide capital typically to venture capital-backed technology companies that are seeking a final round of financing prior to their going public.”

He adds that the fund’s investment strategy is straightforward: “Buy privately, sell publicly and capture the difference.”

KIPO has some $73 million in net assets and about 9.5 million shares outstanding, Keating notes. As of Dec. 31, the fund had 17 companies in its portfolio, including two publicly traded and 15 private companies. (Details on current holdings are available on the fund’s site.)

The fund’s general policy is to maintain a portfolio of about 20 companies, with each holding equally weighted to about 5% of the total portfolio.

Although the general equity markets are near all-time high valuations, Keating doesn’t see evidence of a price bubble in the fund’s prospective or current investments.

“We tend to bifurcate our universe into companies above a billion dollars in value and below a billion dollars in value,” he explains. “A lot of the bubble concerns tend to cluster around the companies that are $1 billion-plus in value. We focus our investments on sub-$1 billion categories, and the valuations are more down to earth in many of those companies.”

The fund made its initial investment in January 2010, with 90% of its total investments made in 2011 and 2012.

KIPO’s shares began trading at roughly $10 per share in December 2011, but by May 2012 the price had dropped below $6.50, according to According to historical price data tracked by Yahoo! Finance. It’s traded mainly in the $6.00-$7.50 range since, then and was in the $6 range as of mid-March.

That performance naturally raises a question: Why should investors consider this stock now?

Keating says it’s a question of understanding the fund’s investment cycle, which he maintains is at a favorable point for generating better returns.

KIPO invests in a company for about two years before its IPO. The fund is then subject to a six-month lockup. Add another 12 months to dispose of the fund’s holdings and you have about a three-and –a-half year cycle from investment to realized gain.

“Our objective is to generate a two-times return over a typical four-year holding period,” says Keating. “And, whenever we generate a realized gain, we are required on at least an annual basis to distribute at least 90% of those gains as dividends to our stockholders.

“So given the starting point of our first investment in January 2010, and the fact that 90% of our portfolio was invested in the 2011 and 2012 vintage years, we’re now reaching a critical point where we expect a substantial portion of the portfolio companies to go public,” he added.

The fund’s dividends have been growing, as well: from $0.03 per share in 2012 to $0.49 per share in 2013.

This year’s dividends are set at $0.10 a share for each of the first three quarters, with a final distribution in the fourth quarter representing realized gains. The combination of portfolio sales, growing distributions and the shares’ discount to net asset value creates what Keating describes as a “very attractive proposition.”

Still, pre-IPO investing is a high-risk, high-return investment strategy, he notes, and KIPO is not appropriate for a conservative or risk-averse investor.

But for investors who already have small-stock exposure, the fund could be appropriate for a 2–5% allocation of the overall portfolio.

 

 

Bulls, Bears, and Chickens

Seasoned financial observer Terry Savage has some suggestions for investors in what may be a more volatile year in the stock market.

TERRY SAVAGE:  I am Terry Savage, author of the Savage Truth on Money and a frequent contributor to Money Show.com.  Now I know you come here for investment advice and you get it here from the pros.  Enough advice to maybe make your mind spin.  Well that is what it is all about, sorting out the bulls, the bears and let me add a third category, the bulls, the bears and the chickens.  Let me remind you that everybody should have a little bit of chicken money that is nothing to be ashamed of; it is money you simply cannot afford to lose.  Now, whatever the proportions are depends on your intelligence, your knowledge of the markets, your stage in life and the size of your assets.  Always keep in mind that having a safe bit of money set aside can help you ride through the inevitable volatility, the ups and downs and even big market declines that could take you off your investment path.  If you know you have some money set aside in chicken money investments, you are far more likely to stick to your original plan and that original plan could include contributing $200, $500 or more every month to an index fund, let’s say, in your 401(k) plan.  Remember, there has never been a 20-year period where you would have lost money in a diversified portfolio of large company stocks with dividends reinvested even adjusted for inflation.  Those are the Ibbotson facts.  Over the long run, you should come out ahead in a diversified stock market portfolio reinvesting your dividends.

But what about that chicken money?  How much should you have and where should it be?  Well, as I said, by definition chicken money is money you cannot afford to lose.  That means it goes in things like insured deposit accounts short-term a year or less, or insured money market deposit accounts, or treasury bills.  I understand your problem with that.  You are earning absolutely no interest, but on the other hand, you will not have any risk of loss.  Well, you might be losing a little bit to inflation because the Feds are really stepping on savers to keep rates low, but there is some price to be paid for peace of mind and having some chicken money on the side, an appropriate amount, lets you sleep at night with your more aggressive and diversified investment plan.  I am Terry Savage and that is the Savage truth. 

The Organic Niche Holds Great Growth Prospects for this Grocery Retailer

Whole Foods Market Inc. (WFM) began its operations in 1980 and has since grown to become the world's leading retailer of natural and organic foods. It is also the first Certified Organic Grocer in the U.S. The company has a strong brand image and its banner is a synonym of quality and health. The firm offers a wide range of organic products, including those of its private labels, through a network of 373 stores mostly located in the U.S., but also in Canada and the UK. Moreover, the company owns and operates 10 regional distribution centers and four seafood processing and distribution facilities.

An Intangible Asset

Whole Foods's leading position in the $80 billion domestic market is the result of a strong brand image that has earned the firm a narrow economic moat. This intangible asset has enabled the company to sell its products at premium price points and also to attain above-average sales per square foot, thus achieving excess returns on invested capital. Furthermore, it favors a higher private-label penetration, thereby strengthening customers' loyalty while boosting margins.

Rivalry

Although switching costs are almost nonexistent in the grocery industry, Whole Foods has developed a solid competitive position through a differentiated value proposition that comprises a vast array of products offering and distinct customer service. These traits and its large network of stores have kept the firm ahead of notable competitors like The Fresh Market Inc. (TFM) and Sprouts Farmers Market Inc. (SFM). These rivals operate roughly 150 stores each and handle an average of 10,000 stock- keeping units against 20,000 at Whole Foods.

Sourcing

In order to maximize volume discount, Whole Foods purchases at regional or national scales. While many of its perishable products are obtained from local producers, almost a third of the company's purchases are sourced from United Natural Foods Inc. (UNFI). Their distribution agreement, valid through 2020, stipulates that UNFI will be the company's main provider of frozen foods and groceries. However, the company seeks to diversify its supplier base by sourcing form local farmers who are eager to suit its high-quality food production standards.

Growth Drivers

The company's successful mix of effective inventory management and strict cost-control measures adds to a revamp of its pricing strategy and a greater focus on value offerings. Hence, Whole Foods has delivered healthy gross margins in the range of 34.8% to 35.5% over the last three years.

Furthermore, the company continues to open new stores and to integrate regional acquisitions. It opened 32 new locations in 2013 and expects to reach the count of 500 by 2017. As store volume augments, the firm benefits from both lower per unit costs and sales increases. Its comps, in turn, also help bolster margins, since they continue to follow an upward trend. Moving forward, Whole Foods expects an escalation of 11% to 12% in total sales for 2014.

Sturdy Growth Profile

Whole Foods' strong brand image, high-quality products and marketing expertise have earned the firm one of the strongest growth profiles in the industry. Its stock trades at 35.80 its trailing earnings, a premium compared to its peers' average of 19.10. Its earnings per share growth, however, showcases an impressive 27.20% against the industry median of 5.10%, which will lead to more attractive multiples. Further, the stock delivered a healthy return on equity of 14.20% compared to its rivals' 9.80% average and its return on capital an outstanding 36.40% against its peers' average of 19.70%. Investment guru Ray Dalio (Trades, Portfolio) recently incorporated Whole Foods to its portfolio, backing my bullish feeling about the firm's exceptional growth potential.

Disclosure: Patricio Kehoe holds no position in any stocks mentioned.

About the author:Patricio KehoeA fundamental analyst at Lone Tree Analytics

Currently 5.00/512345 Rating: 5.0/5 (1 vote)

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3 Stocks Under $10 Making Big Moves Higher

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

>>5 Blue-Chip Stocks to Trade for Gains

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

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

>>5 Stocks With Big Insider Buying

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

ReachLocal

ReachLocal (RLOC) provides a suite of online marketing and reporting solutions to small and medium-sized businesses. This stock closed up 2.9 % to $7.04 in Thursday's trading session.

Thursday's Range: $6.76-$7.06

52-Week Range: $5.87-$14.45

Thursday's Volume: 118,000

Three-Month Average Volume: 150,905

From a technical perspective, RLOC spiked notably higher here and broke out above some key overhead resistance levels at $6.87 to $6.90 with lighter-than-average volume. This breakout is significant, since shares of RLOC have been tapping up against those resistance levels and failing for the last two months. Market players should now look for a continuation move higher in the short-term if RLOC manages to clear Thursday's intraday high of $7.06 with high volume.

Traders should now look for long-biased trades in RLOC as long as it's trending above Thursday's low of $6.76 or above more support levels around $6.50 to $6.30 and then once it sustains a move or close above $7.06 with volume that hits near or above 150,905 shares. If that move begins soon, then RLOC will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $7.96 to its gap-down-day high from May near $8.50. Any high-volume move above $8.50 will then give RLOC a chance to re-fill some of its previous gap-down-day zone that started near $10.50.

Higher One

Higher One (ONE) provides technology-based refund disbursement, payment processing, and data analytics services to higher education institutions and students in the U.S. This stock closed up 1.9% to $3.74 in Thursday's trading session.

Thursday's Range: $3.61-$3.78

52-Week Range: $3.48-$11.93

Thursday's Volume: 199,000

Three-Month Average Volume: 332,408

From a technical perspective, ONE spiked modestly higher here right above some near-term support at $3.53 with lighter-than-average volume. This stock recently formed a double bottom chart pattern at $3.48 to $3.53. Following that bottom, shares of ONE have started to move slightly higher and push within range of triggering a major breakout trade. That trade will hit if ONE manages to take out some key near-term overhead resistance levels at $3.85 to $4 and then above more resistance at $4.25 with high volume.

Traders should now look for long-biased trades in ONE as long as it's trending above those double bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 332,408 shares. If that breakout kicks off soon, then ONE will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $4.84 to $5, or even $5.50 to $5.75.

Empire Resorts

Empire Resorts (NYNY), through its subsidiaries, is engaged in hospitality and gaming industries in New York. This stock closed up 1.2% to $6.65 a share in Thursday's trading session.

Thursday's Range: $6.56-$6.70

52-Week Range: $2.30-$9.39

Thursday's Volume: 84,000

Three-Month Average Volume: 135,157

From a technical perspective, NYNY spiked modestly higher here right above some near-term support at $6.20 with lighter-than-average volume. This spike higher on Thursday is starting to push shares of NYNY within range of triggering a major breakout trade above some key near-term overhead resistance levels. That trade will hit if NYNY takes out its 50-day moving average at $6.77 and then once it clears more key overhead resistance levels at $6.80 to $6.88 and $6.98 with high volume. Those resistance levels have held this stock down for almost two months, so a break above them should be considered bullish price action.

Traders should now look for long-biased trades in NYNY as long as it's trending above some key near-term support levels at $6.20 or at $6.05 and then once it sustains a move or close above those breakout levels with volume that hits near or above 135,157 shares. If that breakout triggers soon, then NYNY will set up to re-test or possibly take out its next major overhead resistance level just above $7.50. Any high-volume move above that level will then give NYNY a chance to re-fill some of its previous gap-down-day zone from April that started near $9.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>3 Huge Stocks on Traders' Radars

>>5 Stocks Set to Soar on Bullish Earnings

>>Move In to Hedge Funds' 5 Favorite REITs This Summer

Follow Stockpickr on Twitter and become a fan on Facebook.

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

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

CNBC.com and Forbes.com.

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

Shire Plc. Rejects $46B Takeover Offer from AbbVie Inc (ABBV)

Shares of AbbVie Inc (ABBV) were up on Friday morning following reports that Ireland-based Shire Plc. has rejected its takeover offer.

Shire reported that it has declined ABBV’s $46 billion offer to acquire the company. The company has been attractive to U.S. healthcare companies due to Ireland’s favorable tax rate on rare diseases businesses.

The offer was declined as Shire believes that the deal would undervalue the company. This was ABBV’s second offer to acquire the company. Although ABBV has not commented on whether it will make another attempt to purchase the Irish company, UK rules require that it must present an offer by July 18 if it chooses to continue.

ABBV Dividend Snapshot

As market close on June 19, 2014

Click here to see the complete history of ABBV dividends.

AbbVie shares were up $2.31, or 4.26% during pre-market trading Friday. The stock is up 2.61% YTD.

Americans Borrow Record Amount to Buy Cars

Daniel Acker/Bloomberg via Getty Images A combination of higher prices for new cars and relatively low rates for auto loans means Americans are borrowing a record amount to pay for their new rides. According to Experian Automotive, which tracks millions of auto loans written each quarter, the average amount borrowed by car buyers last quarter climbed above $27,000 for the first time ever. "It's not surprising buyers are borrowing more," said Melinda Zabritski, Experian's senior director of automotive credit. "If you look at the most popular segments, they are full-size pickups and SUVs. It's hard to find one of those models new and fully loaded for under $30,000." According to Experian, the average auto loan in fourth quarter 2013 was $27,430 -- an increase of $739 compared with the same period of 2012. The average used car loan was $345 higher, coming in at $17,974. Those with non-prime credit ratings -- or credit scores between 620 and 679 -- had the highest average auto loan. For these borrowers, the average new car loan rose more than $1,500, to a new high of $29,385. And as their loans rise, keeping the monthly payment as low as possible has become more of a challenge -- even as car buyers stretch their loans over longer periods of time. According to Experian, the average monthly payment for a new car auto loan rose $11 to $471 in the fourth quarter; the average monthly payment for a used car loan edged $4 higher, to $352. Not surprisingly, those with subprime credit ratings -- credit scores between 550 and 619 -- had the highest average monthly payment, of $499. "I expect that monthly payment to continue rising and go above $500," Zabritski said. "There's always a tipping point where buyers say, 'I can't pay that much every month.' So far, we haven't seen the flashing lights go off indicating buyers are at a tipping point." The payments are rising despite an increasing number of car buyers opting to stretch their loans over six or seven years. According to Experian, a record 20 percent of all new car auto loans in the fourth quarter were more than six years in length. Overall, the average auto loan is scheduled to last 5 years and 3 months -- but that could be rising. J.D. Power said last week that February was on track to have one-third of new car auto loans last at least six years. Bigger auto loans shouldn't come as a surprise, given the average transaction price -- or the amount buyers are paying at dealerships -- climbed 1.9 percent to $32,160 in February, according to Kelley Blue Book. It's the second straight month transaction prices came in above $32,000, as car buyers are adding navigation systems, in-car connectivity and infotainment systems to their vehicles.

Six important tax tips for homeowners

For tax year 2013, the standard deduction is $6,100 for single Americans and $12,200 for those married and filing jointly.

That means unless you can claim more than those amounts, there's no reason to itemize.

One of the most common ways to get over the threshold, however, is to own a house and unlock the many deductions that come with homeownership.

But it's not as simply as simply mailing a mortgage bill to the IRS and reaping the rewards. There are a bunch of very specific deductions that require specific paperwork.

Here are six important tax tips to look for if you're a homeowner:

Mortgage Interest

Claiming mortgage interest is the biggie, and one of the most common deductions among taxpayers.

"It's evolved over the last 10 years, but we now have a cap of $1.1 million in mortgage debt that we can deduct for tax purposes," said Monica Rebella, a certified public accountant in California. This includes first mortgages, as well as mortgages on second homes.

Rebella also points out that the deduction even covers multiple loans, so those with a primary residence in Ohio but winter home in Florida can claim the interest on both, so long as the total is under the $1.1 million cap.

Just be careful, she warns, of claiming a mortgage interest deduction on home equity loans that haven't been used to improve the property.

"If you refinanced your loan and decided, 'Hey, why don't we take another $50,000 out in equity,' but then you don't use that money to, say, build a pool, that's not fully deductible," Rebella said. "You have to use the money to improve the house, or you are not allowed a deduction for that."

Mortgage Insurance and Taxes Count, Too

In addition to mortgage interest, private mortgage insurance is also deductible.

Don't mistake private mortgage insurance, or PMI, for homeowner's insurance that protects against a fire or other loss. PMI comes into play with lower-income homeowners who often can't afford a big down ! payment, and instead pay a small monthly fee as insurance against default . The idea is to protect the lender against being stuck with a big loan with zero equity in the home, as well as to allow those without huge nest eggs to buy a property with minimal down payments.

If you make a private mortgage insurance payment, in most cases this is deductible.

Also worth noting is that local and state property taxes can also be itemized on federal tax returns. Particularly for lower-income Americans, there may be special property tax benefits available based on your community.

Going Green

Unless Congress extends existing tax credits for residential energy efficiency, 2013 is your last chance to claim up to $500 in green energy credits.

"Insulation, energy efficient windows and doors, high efficiency air conditioner and heaters — we still have credits for those," Rebella said.

Still, the cap is small at just $500, and it's not applicable if you claimed it previously since the credit was passed in 2011.

A separate and more substantial credit is available for solar energy installations, so long as they are on your primary residence and not a rental property.

"The credit is for 30% of the cost, including installation, including wiring, including everything," Rebella said.

Cancellation of Debt

Cancellation of mortgage debt is a very important part of filing your tax return and shouldn't be overlooked. That's because if you fail to report the debt forgiveness, it could result in a big change to your overall tax liability and hefty penalties from the IRS.

Rebella said that while foreclosures are not as common as they were a few years ago, debt forgiveness is still very common.

"Interestingly, I'm seeing these 1099-Cs, which is the form for cancellation of debt, on people that can no longer make their second [mortgage] on their home," she said.

In other words, some Americans who saw home prices rebound took out a home equity loan but are no! w having ! trouble making payments. Even if it's not the same as a foreclosure or a short-sale, if that second mortgage is written down by a lender then the borrower has to report that when filing their taxes.

Selling Your Home Unlocks Tax Breaks

Of course, for homeowners who have taken advantage of a resurgent housing market by selling their homes altogether, there are also tax implications.

If you sold a home in the past year, costs including title insurance, advertising and real estate broker fees can also be claimed on your return.

You can also claim certain repairs to reduce your capital gains on the sale, presuming they were made within 90 days of the sale and clearly for the intent of marketing the property.

And after the sale? If you had to find a new home because of a new job that is located more than 50 miles away from your old home, you may be able to deduct your reasonable moving expenses, too.

Casualty Losses

Especially given the very harsh winter weather we've seen recently, it's important to note that when disaster strikes you are able to claim a tax break for any significant losses.

"You have to have a loss more than 10% of your income," Rebella said. "So if you make $50,000, you have to pay $5,000 out-of-pocket before you get any deduction."

And for the record, that's an out-of-pocket loss. You won't get a deduction for losses that were covered by your insurer and that you were compensated for.

But Rebella notes that "some people don't update their insurance, or sometimes there's specific things [insurers] exclude so you can still have a casualty loss even with coverage."

Just make sure that before you claim a $3,000 flat screen was stolen by a burglar or that you had a fully finished basement damaged in a flood that you can prove the value.

"The biggest thing is documentation, documentation, documentation," Rebella said.

In this age of smartphones, it only takes a minute to snap a picture of valuable property — somet! hing good! to have for both insurance claims as well as taxes, she said.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor's Guide to Finding Great Stocks.

Even With Its Exciting Upcoming Casino, Melco Crown Remains Undervalued

Macau's already incredible skyline is about to get even better. Photo: ChinaTourAdvisors.com

Melco Crown (NASDAQ: MPEL  ) is one of the most profitable and rapidly growing casino companies in Macau. Along with competitors Wynn Resorts  (NASDAQ: WYNN  ) and Las Vegas Sands (NYSE: LVS  ) , Melco Crown has made massive gains from the increased visitation and revenue growth of the Macau gaming market. Yet the stock currently looks undervalued for its current strength and future growth prospects. With each of the major companies bringing new casinos to the Cotai strip in Macau in the next two years, here's why you should be excited over Melco Crown's coming Studio City.

The circled area above shows what will be the Melco Crown triangle on the Cotai Strip. Photo: MacauTripping.com

Melco Crown has already proven itself in Macau
Melco Crown currently operates two casinos in Macau: City of Dreams in Macau's main strip called Cotai, and Altira Macau in nearby Taipa. These casinos did very well for the company in the first quarter of this year, which drove the company's revenue up 19% over the first quarter of 2013.

EBITDA itself jumped 31% for the same period, which was driven mainly by an increased focus on mass-market revenue. Analysts at Deutsche Bank, Citigroup, and The Street agree that Melco Crown has very good prospects for continued growth and profit expansion in 2014 and beyond, possibly the best prospects in the industry.

Now, the coming resort will take that to the next level
Now, it's time to get excited about what is coming next, Melco Crown's Studio City casino. This integrated resort with a cinematic theme on the Cotai strip is set to be better than anything Melco Crown has produced yet, with 500 gaming tables, more than 1,500 slot machines, a five-star hotel, shopping mall, and more. Analysts at both Citigroup and Deutsche Bank have said that Studio City will be the "best situated" resort on the Cotai strip, as it will be directly adjacent to the Lotus Bridge that connects the strip to mainland China and a proposed stop for the new intercity light rail coming next year.

Melco Crown's CEO Lawrence Ho continues to lead the company's growth prospects. Photo: Bloomberg

Melco Crown CEO Lawrence Ho is excited as well. He said:

We are extremely excited about our newest integrated resort in Macau, which remains firmly on track to open in mid-2015. The property's cinematic theme and vast array of unique entertainment and attractions will enhance Macau's appeal as a leading tourist destination in Asia.

But competition is coming from other major players
Las Vegas Sands has been aggressively growing in Macau since it arrived, and is continuing to do so. Sands is now developing its third attraction in the area, The Parisian, which will open in 2015 as well. This resort will be the biggest of the new resorts coming to Cotai, at least in terms of the number of guests it can hold, with over 3,000 hotel rooms and suites, around 450 table games, 2,500 slots, a retail mall, and a replica of the Eiffel Tower at 50% scale. 

The Parisian promises to be an impressive resort with a 50% scaled Eiffle Tower. Photo: Las Vegas Sands

CEO Steve Wynn introduces the vision for the new resort on the Cotai strip back in 2012. Photo: Reuters

Wynn Resorts, not to be left out, also has a new casino resort coming to the Cotai strip in the next 18 months. The $4 billion Wynn Palace on Cotai has an expected opening date in 2016. Wynn's resort will include a 1,700-room hotel, a performance lake which will put the one in Las Vegas to shame, and much more.

While it has fewer rooms than Las Vegas Sands' new resort, the 1,700 extra rooms will help Wynn take advantage of one of its best operational highlights: nearly full hotel occupancy. One major operating highlight of Wynn's first-quarter earnings was that the company raised its hotel room occupancy rate to 98.1% from 93% in the year-ago period.

Foolish Investment takeaway: Great company, undervalued stock
Melco Crown has already been rewarded for its great operations in Macau, but is set to see an even bigger jump in profits when its Studio City casino opens next year. The current price in the low $30s, even at a price-to-earnings multiple of around 21, looks like a bargain when compared with Deutsche Bank's price target of $55.

Shares of Las Vegas Sands and Wynn Resorts were at the same level only a couple of years ago before their shares each shot up following incredible growth and profits in Macau. Las Vegas Sands and Wynn Resorts are now pricier than Melco Crown at P/E ratios of 24 and 26, respectively. Based on its already strong revenue growth and the exciting new casino Studio City on the way, now might be a good time for Foolish investors to play Melco Crown.

Warren Buffett just bought nearly 9 million shares of this company
Imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour (That's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click HERE to discover more about this industry-leading stock… and join Buffett in his quest for a veritable landslide of profits!

Lands’ End Soars Without SHLD

Popular Posts: 3 Battered Stocks to Buy for the ReboundThe Best Ways to Buy the Alibaba IPO5 Cheap Stocks Under $10 to Buy Now Recent Posts: Lands’ End Soars Without SHLD 3 Battered Stocks to Buy for the Rebound Lululemon Stock – Catch This Falling Knife (LULU) View All Posts Lands’ End Soars Without SHLD

Lands' End (LE) announced solid first-quarter earnings June 12, its first as a public company. Since being spun off April 7 from its parent company, Sears Holdings (SHLD), LE stock has traded in a six-dollar range between $26 and $32. But the Q1 results were good enough to send the stock up more than 20% in the days since.

Back in March, Lands’ End made my list of 3 Stock Spinoffs That Will Outperform Their Parents. I still have the utmost confidence that, this time next year, the performance comparison between itself and SHLD won't even be close. The recent surge in LE stock is only a glimpse at what is to come.

Here’s why the future is so bright for Lands' End.

Lands' End Loses Dysfunctional Parent

Getting hived off by SHLD is the best thing to happen to Lands' End since it was bought by SHLD's predecessor in 2002. Eddie Lampert is busy selling off everything of value while showing almost no ability to operate a department store of any size, let alone one of the country's largest.

Being set free from the incompetence that permeates the executive suite at Sears can only help Lands' End regain its footing as a respected national brand.

Lands' End's Financial Picture

Lands' End's overall financial picture has trended downward in the past five years with revenues declining by 6% to $1.56 billion. Meanwhile, its adjusted EBITDA saw a 33% decline to $150 million. Given these numbers, it's understandable that investors weren't exactly lapping up Lands' End stock when it became an independent company.

However, the financial picture from a balance sheet perspective isn't all that bad. Sure, Lands' End undertook a $515 million term loan (most payable more than five years out) to pay a $500 million dividend to SHLD as part of its spinoff, but it still finished the first quarter with long-term debt just 3.3 times adjusted EBITDA. It's not perfect, but I'm sure CEO Edgar Huber, who has led some pretty impressive businesses, will whittle that down in no time.

As for its Q1 report there are a few numbers that stand out.

Although its retail segment saw a 2% decrease in sales due to 25 fewer Lands' End Shops open, it still managed to deliver same-store sales growth of 3.4%. Its e-commerce business, which represents 84% of Lands' End's overall revenue, managed to increase sales by 5% year-over-year to $276 million. Operating income for its e-commerce business in the quarter increased by 49% to $25.2 million. That's a margin of 9.1%, 270 basis points higher than last year. More importantly, this powered Lands' End to a 57% increase in overall operating income and a 200 basis-point increase in operating margins. Gross margin inched up 50 basis points in the quarter to 49.0%. When you consider that brands like Kate Spade (KATE) and Michael Kors (KORS) have gross margins in the high 50s, a move into the 50s by Lands' End would be impressive, not to mention profitable.

Its first quarterly report as a public company portends better things to come. Lands' End is solidly profitable and should become even more so with time. There's nothing shaky about its business — and that's saying something, considering where it's come from.

Lands' End Future

I think the future is very favorable for Lands’ End because online is where retail is headed and the company is already there. With more people webrooming than showrooming these days, it stands to reason that those retailers providing convenient brick-and-mortar stores so that customers can click-and-collect are likely to be the most successful. This means that as Lands' End becomes less reliant on the Shops at Sears (251 in Q1 2014 vs. 276 in Q1 2013), it must increase the number of standalone stores, which currently sits at 14.

Huber has a five-point plan whose goal is to transform Lands' End into a $5 billion company. One of the biggest goals is international growth. Presently, there are no stores outside the U.S., although it does sell online in 170 countries around the globe. While it hasn't stated publicly how much international business it generates, its vice president in charge of international business development, Carl Atwell, suggested that it aims to triple or quadruple the amount of business it does outside the U.S. I don't see any reason why it can't achieve this goal within 2-3 years.

Lands' End — Bottom Line

If you believe the saying, "Every cloud has a silver lining" than you should definitely feel this way about Sears if you're a shareholder. I wouldn't have touched SHLD over the past 2-3 years because of all the uncertainty created by Lampert's elaborate game of checkers, but it did result in Lands' End being spun off into its own independent company for which every SHLD shareholder got one-third of a share in the new company.

As I suggested in March, SHLD shareholders should sell some or all of their stock, buying Lands' End shares with the proceeds. Two months later I'm even more convinced this is the right move. There's no question Lands' End has what it takes to be successful as an independent retail operation.

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

Investment banker charged with insider trading

A former New York City investment banker was accused of insider trading Friday for allegedly using brokerage accounts of the mother of his child and his father to reap hundreds of thousand of dollars in illegal profits, federal authorities said.

Frank "Perk" Hixon Jr., a former senior managing director in the mining and metals division of investment bank Evercore Group, allegedly used non-public information he obtained through his job to make trades in the stocks of three firms before market-moving news was announced.

Manhattan federal prosecutors charge Hixon, 55, with five criminal counts of securities fraud, two counts of securities fraud in connection with a tender offer and one count of making a false statement to investigators.

The Securities and Exchange Commission announced separately that a federal judge had issued an emergency freeze on one of the accounts used in the alleged insider trading. Hixon generated at least $950,000 in illegal insider trading profits, the SEC said, though the criminal complaint identified a lower amount.

Evercore characterized Hixon as a rogue employee and said he was fired last month. The bank said it had reported suspicions about his trades to authorities.

"Hixon Jr. violated the trust of his employer and clients by abusing his special access to nonpublic, market-moving information," said David Woodcock, director of the SEC's Fort Worth regional office.

Manhattan U.S. Attorney Preet Bharara said the alleged crimes were compounded, "when the former investment banker tried to evade detection by lying to investigators and to his company" that he didn't know his father or mother of his child.

Hixon's alleged illegal trading took place in 2011-2013 and involved three firms: Titanium Metals, acquired in 2013 by Precision Castparts; Westway Group, which merged with EQT Infrastructure II last year, and Evercore, his own employer.

Federal authorities alleged Hixon executed some of the trades by logging into the brokerage accoun! t of Destiny "Nicole" Robinson, the mother of his young child. She lived in Austin, Tex., according to the criminal complaint. Other trades allegedly went through the account of his father, Frank Hixon, Sr., who lived in Johns Creek, Georgia.

Hixon denied recognizing the name of Robinson and his father when Evercore asked him about suspicious trading in the two accounts, the SEC said. When later confronted with evidence he actually knew both, Hixon allegedly claimed he didn't known Robinson as "Destiny" and didn't recognize the name of the city where his father had lived for 25 years.

According to the criminal complaint, Hixon in January told FBI agents he had never traded in Robinson's account and didn't know that his father had traded in stocks of the companies involved in the investigation.

If convicted, Hixon could face maximum 20-year sentences on each of the security fraud counts and up to five years on the false statement charge.

The charges against Hixon represent the latest development in a multi-year crackdown on insider-trading violations by Bharara's office.

At a federal Magistrate Court hearing Friday, Hixon was orderd to post a $5 million personal recognizance bond secured by $2 million in cash, surrender his U.S. passport and restrict any travel to New York's southern and eastern federal districts.

Is WhatsApp Simply an AIM Alternative for Millennials and Social Media?

Facebook Inc. (NASDAQ: FB) is getting a great company in the WhatsApp buyout. How much it paid for it is another matter, and a matter that is being highly debated at this moment.

WhatsApp Messenger is a cross-platform mobile messaging app that allows you to exchange messages without having to pay for SMS. In short, this is just a revamped ICQ, AOL Instant Messenger and other chat services offered by Google, Yahoo! and even Facebook itself.

In short, it is textless texting, as far as what you have to pay your cellphone provider.

The notion that this was bought for $19 billion is hard to stomach. Can we dare compare 2014 dollars to 1990s money? Arguably not, but you have to recall that dot-com giants were starting to spring up with crazy multiples on revenue and no earnings. Many had no revenues, or at least limited revenues, because the online advertising world simply was not advanced enough nor widespread enough to support the valuations back then.

AOL Inc. (NYSE: AOL) acquired the Israel-based messaging solutions provider Mirabilis for some $287 million back in 1998. AOL’s AIM was already becoming well accepted at the time, but then AIM became perhaps the de facto communications service outside of phones and email for many years. AOL was also to make contingent payments thereafter, but what was ultimately paid in total is so long ago that it is almost immaterial. Still, at the time of the purchase ICQ claimed only about 12 million registered ICQ users at the time.

AOL still has AIM, but the actual ICQ instant messaging service was sold back in 2010 to Digital Sky Technologies Ltd. in Russia for close to $187.5 million — with close to 32 million registered users at the time. AIM has been around since about 1997, and you can run AIM on your smartphones.

So, what is WhatsApp really worth? The company’s blog post on the acquisition claims that the communication service now supports more than 450 million monthly active users worldwide and more than 320 million daily active users.

We won’t bother using the ICQ metrics with any crazy valuation comparisons, because anyone would say that it is simply a different metric entirely. The 450 million monthly active users comes to roughly $35.55 per user, and that is before the extra $3 billion markup on top of the $19 billion price tag.

We are just dealing with different metrics these days. Facebook shares are down only 2.5%, and its market cap is just shy of $170 billion after the drop, so it lost only about a fraction of the price tag being paid for WhatsApp. AOL’s market cap is only about $3.45 billion, but admittedly there is an age gap issue here.

Mark Zuckerberg is undeniably a visionary. How much this really worth requires a lot of vision — lots and lots of vision.

Evening Traders Rejoice! Nadex Adds Nighttime Intraday Nikkei 225 Contracts

The Nadex exchange has just recently added additional binary expirations for the underlying international Indice Nikkei 225. This is great news for evening traders!  Also, if you have a day-time job and are looking for a low-risk way to trade in the evening, this may be a solution for you.

Most markets are known for being pretty flat in the evening, but the Nikkei isn't like other markets. It has great volatility and great trends and reversals. On average, the Nikkei moves approximately 100 ticks per hour! This would be very intimidating to trade the futures markets due to risk of margin calls on big fast moves, but with Nadex spread and binary contracts, all contracts have capped risk.

Related: Using Nadex Spreads To Help You Trade The Australian Dollar CPI News

Here is a chart of the Nikkei 225 over the past week. To ensure you are looking at the correct chart when making trading decisions, it is important you look at the Nikkei 225 at the Singapore exchange (SGX) and not the CME Nikkei 225 listed futures.

As you can see above, the Nikkei 225 is known for having large moves and provides a great opportunity for night-time traders to trade with capped risk. Previously on Nikkei 225, Nadex Japan 225 binaries only had 1 expiration time per day and 1 weekly expiration, but now they have added five additional expiration times in the evening. This makes it even easier to find a binary contract that is right for your trade. The additional intraday binary contracts added by Nadex have the following expirations: Intraday: 7-9 P.M., 8-10 P.M., 9-11 P.M., 10 P.M.-12 A.M., and 11 P.M.-1 A.M, all US Eastern Time.  The Japan 225 binary contracts are a derivative of the Nikkei 225 on the SGX exchange.  Who is Nadex?

The North American Derivatives Exchange is based out of Chicago and is regulated by the U.S. Futures Trading Commission (CFTC). Nadex allows traders to trade binaries and spreads on foreign exchange (forex) markets, U.S. and International Stock Indices, and Commodities like gold and oil. Trades can be opened and closed before expiration and NADEX is not trading against you.

How Can Nadex Binary Contracts Be Used?

These contracts can be used to trade strangles on JPY news, directionally, range bound and premium Collection.

For example, you could buy a strike under the price. If the market moves up stays flat or even down some, you can profit.

You could buy a strike above the price risking $5.00 to make $95. Or risking $500 to make $9500.

Examples Of Nadex Trades

To see examples of trading the news on Nadex binaries and spreads, see these articles posted on Benzinga, click here.

Learn More About Nadex Binaries

On Nadex the markets are open from as early as 6 P.M. ET to as late as 5 P.M. the next day, giving the ability to trade day and/or night on intraday, daily and weekly contracts. 

If you would like to learn more about trading Nadex binaries, check out this 16 video course, absolutely for free, on Marketfy.

 

Posted-In: NK SGX Nikke 225 NadexBinary Options Education News E

John Wiley & Sons Inc Beats Q4 Estimates; Guides FY2015 (JW-A)

John Wiley & Sons (JW-A) reported its fourth quarter earnings before the opening bell this morning, posting results that beat analysts’ estimates.

JW-A’s Earnings in Brief

John Wiley & Sons reported fourth quarter revenues of $457 million, up from 2% (on a constant currency basis) from $441 million reported last year. Adjusted EPS for the quarter came in at 77 cents, up 4% (on a constant currency basis) from last year’s Q4 EPS of 71 cents. JW-A’s results beat analysts’ estimates of 71 cents EPS on revenues of $441 million. For the full-year, John Wiley reported EPS of $3.05 on revenues of $1.78 billion. Looking ahead to next year, John Wiley sees FY2015 EPS in the range of $3.25 to $3.35.

CEO Commentary

Wiley president and CEO Steve Smith had the following comments about the company’s Q4 and full-year results: "We are very pleased with our operational performance this year, including our continued progress in expanding Wiley's depth and breadth as a provider of knowledge-enabled solutions. We exceeded our annual guidance for adjusted revenue growth and earnings, successfully executed on our restructuring plans to achieve a lower and more flexible cost structure, and recently acquired two companies that position Wiley to become a solutions leader in professional learning and development.  Our share of revenue from print books is down to 29%, and through organic investment and targeted acquisitions, and by integrating content, technology, and services, we have accelerated our strategy to provide professionals, students, and researchers with valued solutions that serve their needs from education through employment."

JW-A’s Dividend

John Wiley & Sons did not mention a change to its dividend in its earnings release, but we expect the company to announce an increase to its dividend in the coming weeks.

Stock Performance

John Wiley stock was inactive in pre-market trading. YTD, the company’s stock is up 5.58%.

JW-A Dividend Snapshot

As of Market Close on June 16, 2014

Click here to see the complete history of JW-A dividends.

5 Stocks With Great Sales Growth — HTH INSY CREG TTWO GV

Popular Posts: 10 Best “Strong Buy” Stocks — GMK GAME DAL and moreHottest Healthcare Stocks Now – IDIX MNKD ALNY CLDXHottest Technology Stocks Now – SYNA INFY GTAT GME Recent Posts: Hottest Energy Stocks Now – HK FGP LGCY KEG Hottest Healthcare Stocks Now – SHPG NKTR MWIV THC Biggest Movers in Financial Stocks Now – AEL FFG OZRK GHL View All Posts 5 Stocks With Great Sales Growth — HTH INSY CREG TTWO GV

This week, these five stocks have the best ratings in Sales Growth, one of the eight Fundamental Categories on Portfolio Grader.

Hilltop Holdings () provides business and consumer banking services in Texas. .

Insys Therapeutics, Inc. () develops pharmaceutical products that target the unmet needs of cancer patients, with a focus on cancer-supportive care. INSY also gets A’s in Earnings Surprises and Equity. .

China Recycling Energy () engages in the provision of energy savings and recycling products and services. CREG also gets A’s in Earnings Momentum and Cash Flow. .

Take-Two Interactive Software, Inc. () publishes, develops and distributes interactive entertainment software and hardware. TTWO gets A’s in Earnings Growth, Earnings Momentum, Analyst Earnings Revisions, Equity and Cash Flow as well. The stock currently has a trailing PE Ratio of 9.40. .

Goldfield Corp. () conducts electrical construction operations, including the placement of fiber optic cable and is also engaged in real estate operations. GV also gets an A in Equity. .

Louis Navellier’s proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results — with A being “strong buy,” and F being “strong sell.” Explore the tool here.

Get your spouse onboard with relocating

Before you decide to relocate, find out if your new employer will pay for moving expenses.

(Money Magazine) Getting the job was hard enough; convincing your spouse that it's worth moving for can be even tougher. While employee relocations have been on the rise since 2011 thanks to the thawing real estate and job markets, 61% of people who have declined a far-flung job cited family issues as a reason, according to surveys by moving company Atlas Van Lines.

"Relocating goes way beyond what job you want to do," explains psychologist Peter Pearson, co-founder of the Couples Institute in Menlo Park, Calif. "It requires a huge leap of faith from your spouse." Use this talk to help you decide whether this move is the right one for both of you.

The Ground Rules

Ask about help. "Know all the details about what support package the company has to help your family transition before you talk," says Anne Copeland, founder of the Interchange Institute, which works with families moving abroad.

Buy time. Hiring managers usually understand that out-of-town candidates can't evaluate an offer overnight. So don't be afraid to ask for a few weeks or more, says Brenda Harrington, president of Adaptive Leadership Strategies. "You can't rush this. It isn't a purchase you can return."

When You're Face to Face

1. Open the floor: "They offered me that job in Texas. What do you think? Should we do it?"

Why it works: Acknowledging that this is a joint decision lets your mate know that his or her opinion carries equal weight. "Spouses often feel voiceless because they're not included in the initial exchanges with the company," says Copeland.

  How I talk to my spouse about retirement

2. Show empathy: "I know this would be a big change and would mean moving away from your sisters and leaving your job."

Why it works: You're letting your spouse know that you understand how much he or she will have to sacrifice. "It seems counterintuitive," says Copeland, "but articulating the downsides keeps the other person from having to go to an extremely negative point of view to balance you out."

3. Lay out the stakes: "Taking this job puts me on the path to senior management, and the town's burgeoning tech scene could offer you a chance to move up."

Why it works: You're spelling out not just why the job matters to you, but also how the move could benefit your spouse and family. Showing that you're thinking through a mate's concerns can make him or her more receptive, says t! herapist Lois Bushong.

4. Run the numbers: "Let's do the math to make sure this move will be a net gain for us."

Why it works: Distilling the discussion to hard numbers can sway a reluctant spouse. Use a cost-of-living comparison tool, to help make sure your raise won't be eaten up by higher taxes or home prices, suggests Fairhope, Ala., financial planner Scott McLeod.

5. Suggest a trip: "Why don't we go there this weekend to see if we like it?"

Why it works: Ultimately, this decision is too important to resolve with a conversation. Visit your potential hometown before deciding, says Bushong. Meeting with a real estate agent, investigating the job market, checking out schools, and getting a sense of what life is like in the new place can put your spouse's fears at ease -- and can set you up for a smoother move.

Finra board set to reconsider BrokerCheck website link

Finra next week plans to revive a proposal that would require brokers to include a link on their website and other online communications leading investors to their profile on BrokerCheck, a database which contains information about their disciplinary history.

The board is scheduled to consider the proposal at its Feb. 13 meeting.

The original rule was withdrawn last April after industry resistance. It isn't clear how the rule has been modified since then.

“The last one was too vague and too costly in terms of implementation and monitoring,” said Bryan Ward, a partner at Sutherland Asbill & Brennan.

The initial rule would have required Finra members to include a “prominent description of, and link to” the individual's BrokerCheck page, rather than its home page. Currently, brokers must provide to customers annually in writing the BrokerCheck hotline number and Finra website address.

Finra didn't make clear what “prominent” means or which social-media sites the rule covered, Mr. Ward said.

“They're going to have to work with the industry and get into the weeds, and come up with specific and workable guidance,” said Mr. Ward, who suggested a pilot program involving volunteer firms.

One of the problems with Finra's first attempt at the rule is that it failed to take into account the character and space limitations in social media that make it difficult to include the BrokerCheck link, said David Bellaire, executive vice president and general counsel of the Financial Services Institute.

“Fiinra's earlier proposal didn't sync with how our members are using these platforms to remain in contact with their clients,” said Mr. Bellaire, whose group represents independent broker-dealers and financial advisers. “The original proposal was impossible to comply with while using some of the common Internet communication tools like Twitter.”

Peter Chepucavage, general counsel at Plexus Consulting Group, wrote one of the two dozen comment letters that Finra received on the first proposal. He has concerns about the information in BrokerCheck and the regulatory burden that firms would face in adding links to their online presence.

“I don't like BrokerCheck because it discloses a lot of non-relevant materials,” he said. “Anytime you have to change your website, it involves costs, especially for small broker-dealers.”

It is likely that the Finra board will approv! e the new rule, which could cause brokers to try to remove disciplinary actions from their BrokerCheck pages, according to Mr. Ward.

“We could see an increase in expungement requests,” Mr. Ward said.

The Finra board will tackle expungement by considering a rule that would prohibit basing the settlements of customer disputes on the customer's agreement that the brokers' record be cleared. The board also will address the definitions of “non-public” and “public” arbitrators.

Nearly every brokerage customer agreement contains a clause that requires that disputes be settled through an arbitration process conducted by Finra, the industry-funded broker-dealer regulator.

First Take: Fed gives markets little to cheer

Despite recent signs of weakness, the Federal Reserve thinks that the economy is growing strongly enough for it to trim its bond-buying program by $10 billion, to $65 billion a month, the Fed said Wednesday.

Your mileage may vary, however.

The Fed started to taper its bond purchases, which are designed to keep long-term rates low, in December. Low long-term rates help borrowers, particularly mortgage borrowers, to refinance loans or take out new mortgages at affordable rates. In theory, as the economy starts to gain momentum, markets will no longer need the Fed pushing long-term rates lower than they would normally be.

NEWS STORY: Fed continues to pare stimulus

FED STATEMENT: Full text

DAVID MARSH: Tests loom for Janet Yellen

But the economy is by no means up and dancing, despite the efforts of outgoing chairman Ben Bernanke. Tuesday's report from the Conference Board on its Consumer Confidence Index, a good leading indicator of the economy, showed a rise from December's levels, but it's still well below its average for recovery periods from 2003-2007 and 1997 to 2000. And Tuesday's report on durable goods – big-ticket items expected to last a long time -- was also a disappointment. Wages are stagnant, and employment remains stubbornly high.

For that reason – and because fourth-quarter corporate earnings have seen some big misses, most notably from Apple and Yahoo – financial markets aren't likely to cheer the Fed's decision to take its foot gently off the monetary accelerator. Tapering simply means the Fed isn't adding money to the system as it was before. It's not taking money out of the system.

That's unlikely to happen this year. The Fed probably will not nudge its key short-term fed funds rate, now at zero to 0.25%, until 2015, when the unemployment rate is expected to fall below 6.5%.

For savers, that means another 12 months of negative returns, when adjusted for inflation, which has gained 1.5% for the 12 months ended December. And for! stock investors, who have grown used to "taper tantrums" when the Fed slows down its market-friendly easing, Wednesday's announcement could mean more rocky sessions ahead.

Bond yields fell on the news, which mainly reflects worries about turmoil in emerging markets, particularly Turkey and South Africa, which have raised rates recently.

"Emerging markets weakness is driving the ship right now," says Anthony Valeri, Investment Strategist for LPL Financial. "But the economy is doing well, and rates should track higher. This could be a good selling opportunity for bonds."

5 Big Trades to Survive the S&P's Cold Spell

BALTIMORE (Stockpickr) -- It's cold on Wall Street this month, both literally and figuratively. Lows are reaching single digits in the Northeast as I write today, but the S&P 500 is positively sub-zero three full weeks into 2014.

>>5 Shareholder Yield Winners to Beat the S&P 500

At last count, the big index is down around 0.24%. Even though equities aren't quite hemorrhaging points this winter, they are giving investors the cold shoulder. And that's precisely why it makes sense to focus on strength as we head into the final trading week of January.

To do that, we're turning to the charts to take a closer look at the technical trading setups in five of Wall Street's biggest names.

If you're new to technical analysis, here's the executive summary.

Technicals are a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time.

>>5 Sin Stocks to Play for Defense in 2014

Every week, I take an in-depth look at big names that are telling important technical stories. Here's this week's look at five high-volume stocks to trade this week.

SPDR S&P 500 ETF

It makes sense to start off with a look at the broad market. To do that, we'll use the SPDR S&P 500 ETF (SPY), the best investible proxy for everyone's favorite stock index. Despite all of the anxiety that's been pumped into stocks over the course of the last month, SPY doesn't look half bad as we head deeper into 2014.

>>5 Stocks Insiders Love Right Now

That's because SPY is still staying within the uptrending channel that's been in force since before the start of 2013. So, sure, SPY may be correcting this month, but it's a correction within the context of a longer-term rally. That's shouldn't scare investors away from buying stocks -- it should encourage them!

We're still very much in a "buy the dips" kind of market. On each successive test of trendline support since all the way back in late 2012, the S&P has managed to catch a bid and bounce higher. Odds look pretty good that history will repeat itself on the next attempt; but all trendlines do eventually break, which is why it's critical to wait for shares to actually bounce off of support before diving in.

It's worth noting that momentum, measured by 14-day RSI, is still very much in "bull" mode right now. The S&P could still stand to fall quite a bit without breaking the uptrend in stocks – and if shares come down to test trendline support sometime soon (either with a meaningful move lower or a sideways time correction), I'd certainly be a buyer.

Amazon.com

It's been a pretty solid year for shareholders of Amazon.com (AMZN). In the last 12 months, the online retail behemoth has seen its shares rally more than 48.7%. Don't worry if you missed the move, though -- the recent price action in Amazon points to move highs on the way. Here's how to trade it:

>>4 Tech Stocks in Breakout Territory

Amazon.com is currently forming an ascending triangle pattern, a bullish setup that's formed by a horizontal resistance level above shares at $405 and uptrending support to the downside. Basically, as AMZN bounces in between those two technical price levels, it's getting squeezed closer and closer to a breakout above $405. When that happens, we've got our buy signal -- and shares are testing that breakout in this morning's session...

Whenever you're looking at any technical price pattern, it's critical to think in terms of buyers and sellers. Triangles and other price pattern names are a good quick way to explain what's going on in this stock, but they're not the reason it's tradable. Instead, it all comes down to supply and demand for shares.

That resistance line at $405 is a price where there's an excess of supply of shares; in other words, it's a place where sellers have been more eager to take recent gains and sell their shares than buyers have been to buy. That's what makes the move above it so significant -- a breakout indicates that buyers are finally strong enough to absorb all of the excess supply above that price level. If shares can hold $405 in today's session, it's time to click "buy."

Apple

Apple (AAPL) is another name that looks stellar from a technical standpoint right now. Shares of the technology giant have been in an uptrend since July, but it's the setup forming within the uptrend that makes AAPL look especially timely in January. It's all thanks to an inverse head and shoulders that's taking shape in the short-term.

>>2 Oversold Stocks Ready to Bounce Higher

The inverse head and shoulders pattern in a bullish price setup that indicates exhaustion among sellers. After the 40% that shares of Apple have climbed since July, it's not too hard to see why sellers might be getting tired. The pattern is formed by two swing lows that bottom out around the same level (the shoulders), separated by a deeper low (the head). The buy signal comes on a move through the neckline, which is right at $570.

What's perhaps most important in AAPL right now is relative strength. With the S&P sitting in corrective mode, relative strength is the single most important technical indicator you can put in your toolbox; it's what will keep your portfolio from buckling under the weight of a correction.

With Apple stomping the S&P for more than six months now, relative strength couldn't look much better -- and that adds a lot of confidence for a buy on a move above $570. Risk-averse traders may want to consider a protective stop at the 50-day moving average.

BHP Billiton

Not all of this week's trades are bullish, but often, knowing which names to sidestep (or which to actively short) is what keeps you alive when market performance turns anemic. That brings us to BHP Billiton (BHP), a mega-cap resource stock that's forming the bearish opposite to the one in Apple.

>>5 Stocks Set to Soar on Bullish Earnings

Worse, BHP's head and shoulders top is forming in the long-term; what comes with long-term downside implications if it triggers.

BHP's neckline is right at $62.50 right now, but it's downsloping. For that reason, it'll continue to drop the longer BHP takes to approach it. The biggest problem for anyone who owns BHP right now is that any sell signal is going to be late -- but it'll also be worth heeding considering this stock's previous reactions to this pattern. On multiple timeframes, head and shoulders setups have had little trouble meeting their price targets in BHP this past year.

For longs waiting to buy, I'd recommend avoiding shares unless BHP can break above its right shoulder at $68. Otherwise, if the head and shoulders does trigger, $56 looks like the closest support level for shares to catch a bid again.

Exxon Mobil

Last up is Exxon Mobil (XOM). This oil and gas supermajor needs to introduction, but its chart does. Exxon is bookending our list of trades opposite SPY because it's showing traders what happens when a good uptrend setup goes bad.

Exxon broke a downtrend at the end of 2013, initiating a well-defined rally that started in October. But the uptrend in Exxon was steep enough that it wasn't likely to last for long, and the breakdown below trendline support last week proves it. That move, incidentally, is precisely why it's crucial to wait for a bounce off of support before buying a stock that's pulling back. Exxon couldn't catch a bid at support anymore, and shares fell through.

From here, more downside looks likely. While $95 looks like a reasonable place for shares to find support in the near-term, not losing much money isn't exactly a viable strategy for 2014. Instead, focus on the names with better relative strength in this market.

To see this week's trades in action, check out this week's Must-See Charts portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

>>5 Health Care Stocks to Trade for Gains

>>5 Rocket Stocks to Buy for a Short Trading Week

>>5 Stocks Ready to Break Out

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author was long AAPL.

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

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

Follow Jonas on Twitter @JonasElmerraji