Why You Should Buy Hedge Funds' 5 Favorite Stocks

BALTIMORE (Stockpickr) – Tick. Tick. Tick. Hear that? It's time slipping away between now and the end of 2013.

If you're a hedge fund manager, that's a very worrying sound. After all, with the S&P 500 up 25% since the start of the year after yesterday's record high close, performance expectations are high this year. And for the funds that were underexposed to stocks to start the year, that presents a real gap that needs to be filled before the calendar flips over to January again.

That's not just the case for a few select fund managers; as a group, hedge funds were underweight stocks coming into the year, and many bet on a down move in the S&P back in June. That means that there's lots of money in search of returns for the final months of the year.

And some stocks are attracting more hedge fund dollars than others this quarter...

So today, we'll take a look at the five stocks that hedge funds love the most right now. To do that, we're focusing on 13F filings.

Institutional investors with more than $100 million in assets are required to file a 13F -- a form that breaks down their stock positions for public consumption. From hedge funds to mutual funds to insurance companies, any professional investors who manage more than that $100 million watermark are required to file a 13F.

In total, approximately 3,400 firms file 13F forms each quarter, and by comparing one quarter's filing to another, we can see how any single fund manager is moving their portfolio around. While the data is generally delayed by about a quarter, that's not necessarily a bad thing – research shows that applying a lag to institutional holdings can generate positive alpha in some cases. That's all the more reason to crack open the moves being made with hedge funds $300 billion under management.

Today, we'll focus on hedge funds' 5 favorite stocks from the last quarter...

Facebook

I've made no secret that I'm not a fan of Facebook's (FB) stock. Hedge fund managers don't have the same concerns right now – they picked up 5.35 million shares in the last quarter, boosting their positions in the social network by 50%. That means that hedge funds are making a $790 million bet on Facebook right now.

I'll concede that some things have changed. The technicals have made a complete about-face since I last talked about FB, and the fundamentals are... well, not horrific. But FB still has to do a lot in order to grow into its valuation. Until that happens, the firm has size on its side -- Facebook is the incumbent social networking site, drawing more time from users than any other destination on the web. The personal information on Facebook's servers is extremely valuable, and FB is using it to drive targeted ads. But Facebook needs to generate more revenues by adding value to the user experience, not detracting it with advertising that's only marginally relevant to what they're doing on the site.

Online gaming has been a perfect example of the direction that Facebook should be moving in, even if it makes some analysts nervous. Marketing intelligence is another. An abundance of net cash on its balance sheet gives FB the dry powder to invest in taking its business a step further. Even though hedge funds bought more shares of Facebook than any other name this past quarter, I'm still skeptical.

 

Apple

On the other hand, I am a fan of Apple (AAPL). I own it too. And so do hedge funds apparently -- funds picked up 119,000 shares of the tech giant in the latest quarter, raising their total bet on Apple to $2.39 billion.

Apple has spent most of 2013 as a hated stock. While the S&P 500 has absolutely rocketed this year, its biggest component has managed to slip around 2% year-to-date. Yes, ouch.

But the hate is very overblown -- despite all of the competition and risk, Apple remains a cash cow. Apple's margins are, by far, the biggest in the industry, and while the firm has ceded market share in order to keep margins, that decision has helped the firm hang onto the most lucrative segment of customers. iOS users spend more time on their devices than owners of other devices, and they spend more on apps too. With numbers in for the iPhone 5s and 5c, it's clear that the naysayers were wrong – and early on, the newest iterations of the iPad are moving fast for the holiday season.

Considering the dominance of the iOS products, the Macintosh has been on most analysts' back burners for years now. But that could change thanks to a new Mac Pro offering set to launch next month and refreshed MacBook Pros. The halo effect is still keeping consumers in the Apple ecosystem, and Apple's recently announced policy of free software updates should help spur more Mac-buying in the year ahead. With a mountain of cash on the books, Apple looks cheap right now.

General Motors

It's been a great year for carmakers, and that's shining through in shares of General Motors (GM) -- since the first trading session of the year, GM's shares have climbed more than 33%. Hedge fund managers must think that it'll keep on driving higher; that's why funds picked up 7.69 million shares of the Detroit automaker, ratcheting their position to $1.21 billion.

General Motors has had a tumultuous five years. The firm emerged from bankruptcy in 2009, after shedding a handful of unfruitful brands, unloading debt, and renegotiating union contracts. Worldwide, GM now operates 11 brands -- Chevrolet, Cadillac, GMC, and Buick are the survivors here in the U.S. Along with cost cutting, GM has found big success in ramping up build quality, churning out cars that consumers actually want to own again.

The end result has been profitability – record profitability, in fact. The firm's breakeven points are drastically lower after slashing hourly labor costs by more than two-thirds, and that means that GM can realistically compete with imports (including those assembled here in the U.S.) again. Even though GM is certainly an American icon, some of its biggest growth opportunities are coming from abroad right now. In fact, nearly 70% of GM vehicles are sold outside of North America today, with a huge share coming from emerging-market countries such as China and Brazil.

Now, with a combination of bullish technical and fundamental factors in play, General Motors' upside trajectory should carry on into the new year.

Williams Partners

You'd be forgiven for thinking that natural gas pipeline owner Williams Partners (WPZ) is a commodity-driven stock. It certainly seems like one at first glance. But while this master limited partnership owns one of the largest midstream natural gas operations in the country, it's not a commodity-driven play. It's an income play.

Williams owns one of the largest pipeline networks in the country, transporting natgas in huge volumes. It also operates a huge midstream operation that gathers and processes natgas with a focus on the lucrative Marcellus shale. But more than three-quarters of WPZ's cash comes from fee-based sources that aren't subject to swings in commodity prices (the firm makes most of its money by charging customers to transport their gas). That, and the tax advantages of a MLP, mean that this stock was basically purpose-built for building income. And a huge 7.05% dividend yield proves it.

After spending several years in acquisition mode, Williams owns a mature portfolio of assets that should continue to pay off in the years to come. Hedge funds made a big bet on WPZ, buying up 6.22 million shares in the most recent quarter. Collectively, that entitles funds to a $62 million dividend payout in the year ahead.

Starwood Property Trust

Clearly, hedge fund managers have income generation on their minds right now. That's the only explanation for their stakes in another super-high yield name this quarter: Starwood Property Trust (STWD). Funds picked up 13.5 million shares of the commercial mortgage REIT, mounting up a $504 million stake. Currently, STWD pays out a 7.07% yield.

Starwood invests in mortgage debt, earning the spread between their cost of capital (through either debt or equity offerings) and what they're able to collect from borrowers. The real secret to the mortgage REIT model is leverage; by taking on relatively low-risk assets (like agency backed securities), STWD can lever up its balance sheet dramatically without ramping up risk nearly as much. That's how the firm can pay out such a large yield to its investors.

As a real estate investment trust, STWD pays out around 90% of its income directly to shareholders without being subjected to corporate income taxes -- that makes it a purpose-built income-generation machine. A recently announced plan to spin off its residential landlord unit into a new publicly traded REIT called Starwood Waypoint Residential Trust. The move should unlock some extra value for shareholders, especially in the accommodative REIT IPO market we're seeing this year.

10 Best Oil Stocks To Watch For 2014

If you're looking for income exposure right now, you could do a lot worse than to follow hedge funds into STWD.

To see these stocks in action, check out the Winter 2013 Institutional Buys portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.

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>>4 Stocks Under $10 Moving Higher

 

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>>2 Biotech Stocks Under $10 Triggering Breakouts

 

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author was long AAPL.

 

Fee Wars: Can Fidelity Dominate the ETF Market?

No doubt, mentioning mutual funds without mentioning Fidelity Investments is like discussing great gorilla movies without mentioning King Kong.

The Boston-based fund behemoth, with $1.9 trillion in assets under management, has largely made its mark in the actively managed side of the investment product aisle.

But on October 24, Fidelity shifted its investment model (somewhat, given the army of funds it has under its umbrella) toward a more passive investment approach.

That’s the date Fidelity announced 10 new “passively-managed” exchange-traded funds (ETFs), the first-ever passive ETFs rolled out under the Fidelity banner.

But it’s really on the marketing side, and not the investment management side, where Fidelity wants to make a dent in the $1.3 trillion US ETF market, according to figures from the Washington, DC-based Investment Company Institute.

Here’s a snapshot the US ETF Market, from the Investment Company Institute (as of December 31, 2012):

Total size of US ETF market: $1.3 trillion

Number of Americans who own ETFs: 3.4 million, or 3 percent of US households

Number of US-based ETF providers: 36

Growth rate for ETFs: From year-end 2002 through November 2012, ETFs issued $1,036 billion in net new shares. Most of the activity was targeted toward broad-based domestic equity ETFs.

Leading ETF sectors: Large-cap domestic equity ETFs are the most popular investor category, comprising 21 percent (or $271 billion) of all ETF assets (as of November, 2012). Emerging markets equity ETFs ranked second, comprising 12 percent ($152 billion) of ETF assets.

Fidelity is out to muscle into once-largely uncharted territory with what it calls the  “lowest-cost passively managed sector ETFs in the industry, with total expense ratios of just 0.12 percent,” the company said in a statement.

That’s 80 per! cent below the average for passively-managed ETFs, Fidelity adds. The claim is a generally true statement, as the average ETF offers an expense ratio of 0.44 percent (meaning the ETF will charge you $4.40 in annual fees for every $1,000 you invest). And, the average traditional index fund stands at 0.74 percent, giving Fidelity an even stronger entry-level pricing point story with it 10 new ETFS.

In addition, Fidelity is tossing in one more treat to sweeten the deal: Both investors and investment advisors can buy any one of the new ETFs commission-free, as long as they make the purchase online, and through one of the mutual fund giant’s own brokerage markets (a move right out of the user-friendly Charles Schwab marketing playbook).

Fidelity managers say the rollout is all due to investor demand.

“Since the financial crisis five years ago, investors and advisors have told us that they are looking for additional ways to diversify their portfolios and get exposure to specific industries outside of the typical cap-weighted or style specific options such as large or small cap, or growth and value,” offers Anthony Rochte, president of SelectCo, Fidelity’s sector investing arm. “Our new passive sector ETFs can provide for that diversification, serving as building blocks to help investors and advisors find new ways of generating alpha through asset allocation and better manage portfolio risk.”

That’s certainly one explanation for the new ETF offerings, but that 0.12 percent expense fee provides another, more dollar-driven explanation, to wit: the firm thinks it can undercut the competition in the ETF market and grab a huge slice of that $1.3 trillion in ETF assets.

That’s great news for investors, as Fidelity is looking to declare war on its main fund rivals, who will have to ratchet down their own fund fees to stay competitive with the new Fidelity ETFs. As any economist (and any mom who buys peanut butter at the grocery store) ! will tell! you, once a major consumer brand brings its prices down, it’s very difficult to bring them back up again.

Consequently, a drive to the bottom in ETF fees is a major win for fund consumers, even though the 10 new Fidelity funds offer very little in terms of creative portfolio plays for investors (virtually all of the new funds overlap their holdings with other consumer discretionary ETFs; the difference really is in the fund fee).

So if you want to get in on the ground floor, fee-wise at least, of a broad-based equity ETF, you won’t find a better deal than the new Fidelity ETFs.

That is, for now—or until the rest of the fund industry shakes its fists towards Boston and cuts fees on their own ETFs.

That will likely happen sooner rather than later.

Fidelity’s New ETF Line-up

Here’s a look at the new ETF line-up coming out of Boston, including the index each fund is benchmarked against:

ETF – Fidelity MSCI Industrials Index ETF (NYSE: FIDU)
Index – MSCI USA IMI Industrials Index

ETF – Fidelity MSCI Health Care Index ETF (NYSE: FHLC)
Index – MSCI USA IMI Health Care Index

ETF – Fidelity MSCI Financials Index ETF (NYSE: FNCL)
Index – MSCI USA IMI Financials Index

ETF – Fidelity MSCI Information Technology Index ETF (NYSE: FTEC)
Index – MSCI USA IMI Information Technology Index

ETF- Fidelity MSCI Telecommunication Services Index ETF (NYSE: FCOM)
Index – MSCI USA IMI Telecommunication Services 25/50 Index

ETF – Fidelity MSCI Consumer Discretionary Index ETF (NYSE: FDIS)
Index – MSCI USA IMI Consumer Discretionary Index

ETF – Fidelity MSCI Consumer Staples Index ETF (NYSE: FSTA)
Index – MSCI USA IMI Consumer Staples Index

ETF – Fidelity MSCI Energy Index ETF (NYSE: FENY)
Index – MSCI USA IMI Energy Index

ETF – Fidelity MSCI Materials Index ETF (NYSE: FMAT)
I! ndex R! 11; MSCI USA IMI Materials Index

ETF – Fidelity MSCI Utilities Index ETF (NYSE: FUTY)
Index- MSCI USA IMI Utilities Index
        
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.

Stock Falls After 3D Printer Developer Camtek Clarifies Product Plans

Shares of tech industry testing and inspection systems maker Camtek Ltd. (NASDAQ: CAMT) closed at $1.89 on November 7th, the day the company announced third-quarter earnings. It closed at $2.65 last Friday and skyrocketed to a high of $6.43 on Tuesday before dropping back to around $4.00 in Wednesday trading.

The rise was due to the company's mention during its conference call that it would be introducing a 3D printer for the printed circuit board (PCB) market next year. The decline was due to a clarification of the company's plans that was issued Tuesday afternoon as a result of the volume spike in Camtek's shares.

The Israel-based firm offered this clarification:

[Camtek] is now in the advanced stages of the development of the GreenJet, a digital 3D printing system used for the deposition of solder mask designated for the printed circuit board industry (the "GreenJet System"). The first installation of the GreenJet System for evaluation in a customer’s manufacturing environment is expected to take place in the beginning of 2014 and, subject to the results, the Company expects the first commercial sales of the GreenJet System to take place during 2014.

The company also said that it would stop development on a sample-preparation product for the semiconductor industry and "focus its activity in the field of digital 3D printing for the printed circuit board industry, including the GreenJet System."

On Monday and Tuesday of this week, Camtek's share volume reached about 24 million shares each day and more than 5 million shares have traded hands by the mid-afternoon on Wednesday. That number would probably be larger were it not for traders getting an early start on the Thanksgiving holiday.

Profits from Camtek's GreenJet system appear to be at least six months to a year away. Many investors who bought the stock earlier this week are taking profits rather than waiting. It's pretty likely that another opportunity to get the stock cheaply will turn up.

Camtek's shares are trading down about 11.5% at $4.16 in a 52-week range of $1.31 to $6.43.

Asian Stocks Erase Advance as Chinese Shares Tumble

Asian stocks erased gains and the regional benchmark index retreated from a five-month high after Chinese shares tumbled as the nation's money-market rates surged.

China Resources Land Ltd., the second-largest mainland developer traded in Hong Kong, slipped 2.2 percent. Japan Exchange Group Inc. sank 3.4 percent after the main bourse operator of the world's second-largest equity market didn't boost its full-year profit forecast as analysts had expected. Hyundai Merchant Marine Co. jumped 10 percent after South Korea's biggest shipping line by market value refinanced 280 billion won of debt ($265 million).

The MSCI Asia Pacific Index dropped 0.3 percent to 143.46 as of 2:03 p.m. in Tokyo, erasing gains of as much as 0.5 percent. The gauge had risen for four days and today briefly touched the highest level since June 2008 amid speculation the Federal Reserve will delay tapering economic stimulus. The Shanghai Composite Index (SHCOMP) headed for a three-week low as China's money market rates jumped the most since July.

"The market has had a good run since the U.S. government ended a shutdown last week," Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., said in a telephone interview. "It's not a surprise that we're seeing a bit of a correction. Chinese interest rates are an issue. There's a fear that the mini credit crunch we saw in June could return again. It's probably part of the broader efforts to slow down credit growth in China."

Bank Funding

China's Shanghai Composite Index slipped 1.2 percent, heading for the lowest close since Sept. 30. The seven-day repurchase rate, a gauge of funding availability in the Chinese banking system, surged 42 basis points to 4 percent as of 10:04 a.m. in Shanghai, according to a weighted average compiled by the National Interbank Funding Center. That was the biggest advance since July 29.

The People's Bank of China has suspended selling reverse-repurchase contracts since Oct. 17, leading to a net withdrawal of 44.5 billion yuan ($7.3 billion) from the financial system last week. The authority asked commercial banks to submit orders today for 28-day repurchase contracts, 91-day bills, and 14-day reverse repos planned for tomorrow, according to a trader at a primary dealer required to bid at the auctions.

Hong Kong's Hang Seng Index lost 0.1 percent. Japan's Topix Index (TPX) slid 1 percent, while Taiwan's Taiex index fell 0.4 percent. South Korea's Kospi index dropped 0.7 percent.

Australian Inflation

Australia's S&P/ASX 200 Index declined 0.3 percent, erasing gains of 0.5 percent. The nation's inflation accelerated in the third quarter from the previous three months, a report showed today. New Zealand's NZX 50 Index gained 0.9 percent, extending its advance to a record high.

The MSCI Asia Pacific Index climbed 3.8 percent this month through yesterday after U.S. lawmakers ended the government shutdown and raised the debt ceiling. The gauge yesterday traded at 13.8 times estimated earnings, compared with 15.9 for the Standard & Poor's 500 Index and 14.8 for the Stoxx Europe 600 Index.

The S&P 500 climbed 0.6 percent yesterday, a fourth day of record closing highs, on speculation slower growth in hiring will extend Federal Reserve stimulus. That pushed the U.S. equities benchmark to within a percentage point of the best yearly gain in a decade. Futures on the S&P 500 expiring in December fell 0.3 percent today.

Barclays Plc changed its estimate for the start of Fed tapering to March from December after data showed U.S. employers added 148,000 workers in September, missing the 180,000 increase projected in a Bloomberg survey of economists. The data's release was delayed due to the 16-day U.S. government shutdown.

Fed policy makers unexpectedly refrained in September from reducing their $85 billion in monthly bond purchases, saying they wanted more evidence of an economic recovery. Deutsche Bank AG expects quantitative easing to continue into the first quarter of next year, while Goldman Sachs Group Inc. economists said that while tapering in December "remains a possibility," March is the most likely date.

American Airlines posts third quarter profit

The parent company of American Airlines, which is in the midst of a federal lawsuit seeking to block its proposed merger with US Airways, posted a profit of $289 million in the third quarter, the second profitable quarter in a row for the airline.

AMR said Thursday that the quarterly profit was $527 million more than what it brought in during the same three-month period in 2012, when the airline operated at a loss.

The airline company, which has been under bankruptcy protection, said that without the costs of reorganization and other special items, it would have seen a profit of $530 million. That would have made this most recent fiscal period the most profitable quarter in American's history.

In a statement, AMR's chairman, president and CEO Tom Horton attributed the positive returns partly to a reining in of costs as the company restructures and swaps out older planes for new jets. And the efforts, he said, bode well for a union with US Airways.

"Continued execution on our product, network and alliance strategy, combined with cost efficiencies from restructuring and fleet renewal, creates strong momentum towards our planned merger with US Airways,'' Horton said.

American and US Airways announced plans to merge in February, an $11 billion deal that would make the newly combined carrier the biggest in the world based on revenue and the number of passengers it flies. The carriers need to join forces, they say, to better compete with Delta and United, who have been bolstered by their own recent, major mergers.

But in a move that shocked industry watchers, the Department of Justice, along with the attorneys general for several states and the District of Columbia, filed suit to stop American's tie-up with US Airways. They argued that it would boost fares and reduce competition between 1,000 cities where US Airways offers one-stop connections.

The two-week trial is set to start on Nov. 25. Earlier this month, Texas, which had joined the Justice Department in challeng! ing the merger, withdrew from the case. The state has received a three-year commitment that the new American's headquarters would remain in Texas, while service to 22 airports throughout the state would also continue.

Basili Alukos, a credit analyst with Morningstar, noted that American's quarterly revenue was its highest for a quarter ever, while some of its costs were also improving.

"It appears AMR is operating on all cylinders,'' he says.

3 Under-$10 Tech Stocks to Keep on Your Radar

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

>>5 Stocks Under $10 Set to Soar

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 Insiders Love Right Now

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

Parkervision

Parkervision (PRKR) designs, develops and markets proprietary radio frequency technologies and products for use in semiconductor circuits for wireless communication products in the U.S. This stock closed up 5.9% to $3.90 in Thursday's trading session.

Thursday's Range: $3.65-$4.00

52-Week Range: $1.82-$7.78

Thursday's Volume: 1.12 million

Three-Month Average Volume: 2.45 million

From a technical perspective, PRKR spiked sharply higher here right above its 50-day moving average of $3.48 and back above its 200-day moving average at $3.86 with lighter-than-average volume. This move is quickly pushing shares of PRKR within range of triggering a big breakout trade. That trade will hit if PRKR manages to take out some near-term overhead resistance levels at Thursday's high of $4 to $4.05 with high volume.

Traders should now look for long-biased trades in PRKR as long as it's trending above its 50-day at $3.48 or above more support at $3.45 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.45 million shares. If that breakout hits soon, then PRKR will set up for a potentially large move higher that takes the stock back towards $5 to $5.50.

Aviat Networks

Aviat Networks (AVNW) manufactures wireless networking products, solutions and services to mobile and fixed operators, private network operators, government agencies, transportation and utility companies, public safety agencies and broadcast network operators. This stock closed up 3.9% to $2.13 in Thursday's trading session.

Thursday's Range: $2.05-$2.13

52-Week Range: $1.93-$3.90

Thursday's Volume: 229,000

Three-Month Average Volume: 340,103

From a technical perspective, AVNW spiked higher here and broke out above some near-term overhead resistance at $2.12 with lighter-than-average volume. This stock has been trending sideways for the last month and change, with shares moving between $1.92 on the downside and $2.30 on the upside. Shares of AVNW are now starting to trend within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern. That breakout will hit if AVNW manages to take out some near-term overhead resistance levels at $2.16 to $2.30 with high volume.

Traders should now look for long-biased trades in AVNW as long as it's trending above some key near-term support levels at $2 or at $1.95 and then once it sustains a move or close above those breakout levels with volume that hits near or above 340,103 shares. If that breakout hits soon, then AVNW will set up to re-test or possibly take out its next major overhead resistance levels at $2.60 to around $2.80.

DragonWave

DragonWave (DRWI) is a provider of high-capacity packet microwave solutions that drive next-generation IP networks. This stock closed up 4.2% to $1.24 in Thursday's trading session.

Thursday's Range: $1.18-$1.29

52-Week Range: $1.08-$3.74

Thursday's Volume: 1.57 million

Three-Month Average Volume: 493,738

From a technical perspective, DRWI spiked sharply higher here with heavy upside volume. This stock has been downtrending badly for the last three months and change, with shares plunging lower from its high of $3.58 to its recent low of $1.08. During that downtrend, shares of DRWI have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of DRWI might be ready to see an end to its downside volatility since the stock has started to spike higher over the last few days with heavy upside volume.

Traders should now look for long-biased trades in DRWI as long as it's trending above Thursday's low of $1.18 or above its 52-week low of $1.08 and then once it sustains a move or close above Thursday's high of $1.29 to more near-term resistance at $1.34 with volume that hits near or above 493,738 shares. If we get that move soon, then DRWI will set up to re-test or possibly take out its next major overhead resistance levels at $1.52 to its 50-day moving average at $1.64. Any high-volume move above $1.64 will then give DRWI a chance to tag $1.86 to $2, or even $2.20.

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

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>Profit From 5 Trades Warren Buffett Made

>>4 Stocks Spiking on Unusual Volume

>>5 Earnings Short-Squeeze Plays

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.

Asian Stocks Swing as Investors Watch U.S. Shutdown Talks

Asian stocks rose, led by materials companies and industrial shares, as investors watched for progress on ending an impasse over federal spending that has shut down the U.S. government for two days.

The MSCI Asia Pacific Index added 0.1 percent to 138.79 as of 9:04 a.m. in Tokyo. The U.S. government is in partial shutdown after lawmakers failed to agree on a federal budget. President Barack Obama summoned the top four leaders of Congress to the White House for the first high-level talks on reopening the government and raising the debt ceiling.

Japan's Topix index rose 0.2 percent. Australia's S&P/ASX 200 Index was little changed, while New Zealand's NZX 50 Index fell 0.4 percent. South Korea's Kospi index was little changed. Futures on the Standard & Poor's 500 Index fell 0.4 percent today after the measure slipped 0.4 percent yesterday. Markets are yet to open in Hong Kong, while those in China are closed for a holiday.

The MSCI Asia Pacific Index rallied 6.4 percent in September, the biggest monthly advance since January 2012. The measure traded at 13.4 times estimated earnings as of yesterday, compared with 15.3 for the S&P 500 and 14.1 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

Japan's Topix index climbed 37 percent this year through yesterday, the most among developed markets, amid optimism Prime Minister Shinzo Abe and the Bank of Japan can lead the country out of deflation through unprecedented monetary easing.

U.S. Jobs

A report yesterday showed U.S. companies added fewer workers than projected in September, indicating the job market is struggling to gain momentum. The 166,000 increase in employment followed a revised 159,000 rise in August that was smaller than initially estimated, according to the ADP Research Institute in Roseland, New Jersey. The median forecast of 40 economists surveyed by Bloomberg called for an advance of 180,000.

Investors have been scrutinizing economic reports to gauge whether growth is robust enough for the Federal Reserve to begin curtailing stimulus at its next meeting this month. The Labor Department won't release its monthly jobs report on Friday if the government remains closed.

Best Medical Stocks For 2014

Every quarter, many money managers have to disclose what they've bought and sold, via "13F" filings. Their latest moves can shine a bright light on smart stock picks.

Today, let's look at Westfield Capital Management, an investment advisor serving institutions and wealthy investors. It employs deep fundamental research as it seeks out stocks that are underloved by the market, and its funds have outperformed�their benchmarks, on average, since inception.

The company's reportable stock portfolio totaled $14.7 billion in value as of March 31, 2013.

Interesting developments
So what does Westfield's latest quarterly 13F filing tell us? Here are a few interesting details:

The biggest new holdings are Actavis�and Axiall. Other new holdings of interest include AbbVie (NYSE: ABBV  ) . AbbVie is half of the split-up of Abbott Labs, retaining the pharmaceutical business, while Abbott focuses on medical, diagnostic, and nutritional products. Some worry about its heavy debt or the impending patent expiration of its blockbuster drug Humira, which is on track to become the first drug to generate more than $10 billion in annual sales. On the plus side, though, AbbVie generates about $18 billion in annual revenue and more than $5 billion in annual free cash flow. It has other drugs on the market, too, and more in its pipeline, tackling Hepatitis C, among other conditions. (A Hep C treatment just received FDA breakthrough designation.) It also sports a 3.6% dividend yield.

Best Medical Stocks For 2014: Organovo Holdings Inc (ONVO)

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

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

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

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

Advisors' Opinion:

• [By Harry Boxer]

  HARRY:  It is.  More than 10 years, I visited 3-D systems and saw a demo, and it was like whoa.  They weren’t even public then.  Of late, SSYS (Stratasys), Proto Labs (PRLB), EX1; those are the four big ones in the industry.  There is a little buy-out tech company called Orvganovo (ONVO) that is now bio-printing organs for testing.

• [By James E. Brumley]

  I'll warn you now that if you a fan of or shareholder in Organovo Holdings Inc. (NYSEMKT:ONVO), you're not going to like what you're about to hear. Sorry, but I have to call 'em like I see 'em. And what I see with ONVO is an overbought stock ripe for a big tumble.

Best Medical Stocks For 2014: RXi Pharmaceuticals Corp (RXII.PK)

RXi Pharmaceuticals Corporation (RXi), incorporated on September 8, 2011, is a development-stage company. The Company is a biotechnology company focused on discovering, developing and commercializing therapies addressing medical needs using RNA interference (RNAi)-targeted technologies. As of July 12, 2012, RXi was focusing on its internal therapeutic development efforts in fibrosis. RXI-109 is its RNAi product candidate, which is a dermal anti-scarring therapy that targets connective tissue growth factor (CTGF). The Company�� therapeutic platform consists of two main components: RNAi Compounds (rxRNA) and Advanced Delivery Technologies. RNAi compounds include rxRNAori, rxRNAsolo and sd-rxRNA, or self-delivering RNA. On April 26, 2012, it completed the spin-off transaction from Galena Biopharma, Inc. (Galena).

In January 2011, the Company announced research results in collaboration with Generex Biotechnology Corporation, and RXi�� wholly owned subsidia ry Antigen Express, Inc., in developing vaccine formulations for immunotherapy. In January 2011, it announced initial results as part of its collaboration with miRagen Therapeutics, Inc. in creating microRNA mimics, or artificial copies of microRNAs, using the Company�� sd-rxRNA technology. In February 2011, it announced the initiation of RXi�� development program for RXI-109.

Top 10 Cheap Companies To Buy For 2014: Galena Biopharma Inc (GALE.PH)

Galena Biopharma, Inc. (Galena), formerly RXi Pharmaceuticals Corporation, incorporated on April 3, 2006, is a biotechnology company focused on discovering, developing and commercializing therapies addressing unmet medical needs using targeted biotherapeutics. The Company is pursuing the development of cancer therapeutics using peptide-based immunotherapy products, including its main product candidate, NeuVaxTM (E75), for the treatment of breast cancer and other tumors. NeuVax is a peptide-based immunotherapy intended to reduce the recurrence of breast cancer in low-to-intermediate HER2-positive breast cancer patients not eligible for trastuzumab (Herceptin; Genentech/Roche). On January 19, 2012, the Company initiated enrollment in its Phase 3 PRESENT clinical trial for NeuVax (E75 peptide plus GM-CSF) vaccine in low-to-intermediate HER2 1+ and 2+ breast cancer patients in the adjuvant setting to prevent recurrence (Clinicaltrials.gov identifier NCT01479244). The Preven tion of Recurrence in Early-Stage, Node-Positive Breast Cancer with Low to Intermediate HER2 Expression with NeuVax Treatment study is a randomized, multicenter, multinational clinical trial that will enroll approximately 700 breast cancer patients. The Company�� Phase 2 trial of NeuVax achieved its primary endpoint of disease-free survival (DFS). On April 13, 2011, the Company completed its acquisition of Apthera, Inc.,(Apthera).

The Company focuses to start a Phase 2 trial comparing NeuVax in combination with trastuzumab (Herceptin) versus trastuzumab, alone, in a 300-patient, randomized study in the adjuvant breast cancer setting. The Company's second product candidate, Folate Binding Protein-E39 (FBP), is a vaccine, consisting of the peptides E39 and J65, aimed at preventing the recurrence of ovarian, endometrial, and breast cancers. On February 14, 2012, the Company announced the initiation of a Phase 1/2 clinical trial in two gynecological cancers: ovari an and endometrial adenocarcinomas. Folate binding protein! h! as very limited tissue distribution and expression in non-malignant tissue and is over-expressed in more than 90% of ovarian and endometrial cancers, as well as in 20% to 50% of breast, lung, colorectal and renal cell carcinomas.

In April 2011, the Company acquired Apthera Inc and its NeuVax product candidate. The Company focuses on developing a pipeline of immunotherapy product candidates for the treatment of various cancers based on the E75 peptide, the advanced of which is NeuVax, which is targeted at preventing the recurrence of breast cancer. NeuVax has had positive Phase 1/2 clinical trial results for the prevention of breast cancer recurrence in patients who have had breast cancer and received the standard of care treatment (surgery, chemotherapy, radiotherapy and hormonal therapy as indicated). The Company had also initiated its Phase 3 PRESENT clinical trial of NeuVax for the prevention of breast cancer recurrence in early-stage low-to-intermediate HER2 breast cancer patients. NeuVax directs killer T-cells to target and destroy cancer cells that express HER2/neu, a protein associated with epithelial tumors in breast, ovarian, pancreatic, colon, bladder and prostate cancers. NeuVax is comprised of a HER2/neu-derived peptide called E75. E75 is a nine-amino acid sequence that is immunogenic (produces an immune response) and GM-CSF is a commercially available protein that acts to stimulate and activate components of the immune system such as macrophages and dendritic cells.

The Company also develops novel applications for NeuVax based on preclinical studies and phases 2 clinical trials which suggest that combining NeuVax and trastuzumab (Herceptin; Genentech/Roche) can increase antigen presentation by tumor cells by promoting receptor internalization and subsequent proteosomal degradation of the HER2 protein. The Company also is pursuing additional therapeutic indications for NeuVax that are in Phase 1/2 clinical trials. RXI-109, is a dermal anti-scarring therapy that ! targ! ets! conne! ctive tissue growth factor (CTGF) and that may inhibit connective tissue formation in human fibrotic disease.

The Company competes with Roche Laboratories, Inc., Pfizer Inc., Bayer HealthCare AG, Sanofi-Aventis, US, LLC, Amgen, Inc., GlaxoSmithKline plc, Renovo Group plc, CoDa Therapeutics, Inc., Sirnaomics, Inc., FirstString Research, Inc., Merz Pharmaceuticals, LLC, Capstone Therapeutics, Halscion, Inc., Garnet Bio Therapeutics, Inc., AkPharma Inc., Promedior, Inc., Kissei Pharmaceutical Co., Ltd., Eyegene, Derma Sciences, Inc., Healthpoint Biotherapeutics, Pharmaxon, Excaliard Pharmaceuticals, Inc., Alnylam Pharmaceuticals, Inc., Marina Biotech, Inc., Tacere Therapeutics, Inc., Benitec Limited, OPKO Health, Inc., Silence Therapeutics plc, Quark Pharmaceuticals, Inc., Rosetta Genomics Ltd., Lorus Therapeutics, Inc., Tekmira Pharmaceuticals Corporation, Arrowhead Research Corporation, Regulus Therapeutics Inc. and Santaris.

Best Medical Stocks For 2014: Universal Biosensors Inc (UBI)

Universal Biosensors, Inc. (Universal Biosensors) is an early-stage specialist medical diagnostics company focused on the research, development and manufacture of in vitro diagnostic test devices for consumer and professional point-of-care use. The Company uses its electrochemical cell technology platform to develop tests for a number of different markets. The Company�� principal activities are research and development, commercial manufacture of approved medical or testing devices and the provision of services including contract research work. The Company operates primarily in Australia. The Company uses its electrochemical cell technology platform to develop tests for a number of different markets. The Company has rights to a portfolio comprising patent applications owned by its wholly owned subsidiary, Universal Biosensors Pty Ltd, and a number of patents and patent applications licensed to the Company by LifeScan, Inc., an affiliate of Johnson & Johnson Company.

Best Medical Stocks For 2014: Prima BioMed Ltd (PBMD)

Prima BioMed Ltd is a biotechnology company is engaged in the development and commercialization of medical therapies with a focus on oncology. Its product candidates in development include Cvac, an autologous dendritic cell vaccine for ovarian cancer, monoclonal antibodies for multiple tumour types, and an oral formulation for the human papilloma virus (HPV), vaccine. Its product candidate Cvac is a dendritic cell therapy, for which it is conducting a Phase IIb trial for the treatment of ovarian cancer. Cvac is designed to target the tumour antigen mucin-1, which is expressed at high levels on different tumour types. It also has two preclinical product development programs. In May 2011, Prima BioMed GmbH, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in Germany. In May 2011, Prima BioMed Middle East FZLLC, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in the United Arab Emirates. Advisors' Opinion:

• [By Monica Gerson]

  Prima Biomed (NASDAQ: PBMD) dropped 38.17% to $1.45 after the company reported top-line analysis of CVac Phase 2 trial.

  Tower Group International (NASDAQ: TWGP) plummeted 24.31% to $10.49. Tower Group announced its plans to release its Q2 results during the week of October 7, 2013. FBR Capital downgraded the stock from Outperform to Market Perform.

• [By Monica Gerson]

  Prima Biomed (NASDAQ: PBMD) shares dipped 38.59% to touch a new 52-week low of $1.44 after the company reported top-line analysis of CVac Phase 2 trial.

Best Medical Stocks For 2014: Revolutions Medical Corp (RMCP)

Revolutions Medical Corporation (Revolutions Medical), incorporated on August 16, 1996, is principally engaged in the designing, developing and commercializing of retractable vacuum safety needle devices. The Company is engaged in the development of technology which can segment and reference MRI images. The Company also has developed a suite of MRI software tools; RevColor, Rev3D, RevDisplay, and RevScan. MRI (Magnetic Resonance Imaging) is used imaging system that safely creates many different and detailed views of selected portions of the internal anatomy.

The RevVac safety syringe uses vacuum technology to retract the needle into the plunger immediately after use. The syringe cannot be reused once the vacuum is activated. When an MRI is taken, the black and white images are sent to a picture archiving and communication system (PACS), which displays the images for a radiologist to view. By using high speed Internet, these images can be securely sent to the Company�� secure Website, after a secure account is opened. This process is called teleradiology.

The Company competes with Med-Design Corporation, New Medical Technologies, Retractable Technologies, Inc., Unilife, Inc., Specialized Health Products International, BD and Covidien Ltd, Terumo Medical Corp. and B. Braun internationally.

Best Medical Stocks For 2014: RXi Pharmaceuticals Corp (RXII)

RXi Pharmaceuticals Corporation (RXi), incorporated on September 8, 2011, is a development-stage company. The Company is a biotechnology company focused on discovering, developing and commercializing therapies addressing medical needs using RNA interference (RNAi)-targeted technologies. As of July 12, 2012, RXi was focusing on its internal therapeutic development efforts in fibrosis. RXI-109 is its RNAi product candidate, which is a dermal anti-scarring therapy that targets connective tissue growth factor (CTGF). The Company�� therapeutic platform consists of two main components: RNAi Compounds (rxRNA) and Advanced Delivery Technologies. RNAi compounds include rxRNAori, rxRNAsolo and sd-rxRNA, or self-delivering RNA. On April 26, 2012, it completed the spin-off transaction from Galena Biopharma, Inc. (Galena).

In January 2011, the Company announced research results in collaboration with Generex Biotechnology Corporation, and RXi�� wholly owned subsidiary Antigen Express, Inc., in developing vaccine formulations for immunotherapy. In January 2011, it announced initial results as part of its collaboration with miRagen Therapeutics, Inc. in creating microRNA mimics, or artificial copies of microRNAs, using the Company�� sd-rxRNA technology. In February 2011, it announced the initiation of RXi�� development program for RXI-109.

Best Medical Stocks For 2014: Oxford BioMedica PLC (OXB)

Oxford BioMedica plc is a biopharmaceutical company developing gene-based medicines and therapeutic vaccines. The Company�� LentiVector platform products include ProSavin, RetinoStat, StarGen, UshStat, EncorStat, Glaucoma-GT and MoNuDin. Its 5T4 Tumour Antigen produces TroVax and Anti-5T4 antibody. The Prime Boost�� product includes Hi-8 Mel. Its GDEPT platform produces MetXia and Anti Angiogenesis platform produces EndoAngio-GT. The Company is developing four LentiVector platform product candidates for the treatment of ocular diseases: RetinoStat for wet age-related macular degeneration (AMD); StarGen for Stargardt disease; UshStat for Usher syndrome type 1B, and EncorStat for corneal graft rejection. TroVax is a therapeutic vaccine that stimulates the immune system to destroy cancerous cells expressing the 5T4 tumour antigen. On February 25, 2011, the Company purchased a freehold property, United Kingdom comprising a manufacturing facility.

Reaction to Fed news tempered by economic concerns

Ben S. Bernanke

Financial markets rallied Wednesday afternoon on the news that the economy is not yet strong enough to start tapering the five-year long quantitative easing program.

Some financial advisers and market watchers described the announcement as bittersweet.

“This is really about the message it sends, because for them not to start tapering of quantitative easing really sends the message that there must be some bad news in the economy that most people don't know about yet,” said Tim Clift, chief investment strategist at Envestnet PMC.

“Almost nobody thought the Fed wouldn't start tapering this month, and that now sends a signal that they're still not comfortable with the financial situation,” he said. “So the faucet remains open, and there's more free money to be had, which is good for the financial markets but it is not a positive for the economy.”

Fed Chairman Ben Bernanke surprised most market watchers when he announced the $85 billion-per-month Treasury buying program would continue uninterrupted for the time being. Equities and gold both rallied on the news, while the yield on the 10-year Treasury bond fell slightly.

“The Committee decided to await more evidence that progress will be sustained before adjusting the pace of its purchases,” the Federal Open Market Committee said today at the conclusion of a two-day meeting in Washington. While “downside risks” to the outlook have dimished, “the tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement.”

Mr. Bernanke and his policy making colleagues held back from paring record accommodation as rising borrowing costs show signs of slowing the four-year expansion. Treasury yields have jumped since May, when he first outlined a possible timetable for a reduction in the asset purchases that have swelled the Fed's balance sheet to $3.66 trillion.

Stocks and Treasuries soared after the statement. The Standard & Poor's 500 Index climbed 0.9 percent to an intraday record of 1,720.30 at 2:16 p.m. in New York. The yield on the 10-Year Treasury note dropped eight basis points to 2.77 percent.

“Asset purchases are not on a preset course, and the committee's decisions about their pace will remain contingent on the committee's economic outlook as well as its assessment of the likely efficacy and costs of such purchases,” according to the statement.

The Fed's announcement emphasized the stubbornly high unemployment rate, and also included a downward adjustmen! t of projected gross domestic product growth for this year to between 1.8% and 2.4%, from a range of between 2% and 2.6%.

Even as advisers tried to find the silver lining in the announcement by suggesting that the bond rally could be an opportunity for some portfolio re-balancing, it still drew criticism for adding macro risk factors.

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“I think the reality is that this has gone on long enough,” said Jeff Leventhal, a partner and managing director at HighTower Bethesda.

“The issue I see here is that if the data doesn't improve at some point and we head in another direction, what tools will we have if we go back into another recession?” he said. “There are consequences to leaving rates too low for too long.”Press Conference

The Fed chairman has orchestrated the most aggressive easing in the Fed's 100-year history, pumping up the balance sheet from $869 billion in August 2007 and holding the main interest rate close to zero since December 2008. Bernanke will have an opportunity to explain the Fed's policy strategy at a 2:30 p.m. press conference in Washington.

The central bank today left unchanged its guidance that it will probably hold its target interest rate near zero “at least as long as” unemployment exceeds 6.5 percent, so long as the outlook for inflation is no higher than 2.5 percent.

Most Fed policy makers expect the first increase in the nation's benchmark lending rate to occur in 2015, according to projections released today.

The federal funds rate target will be 2 percent at the end of 2016, according to the median of estimates by five governors on the Fed's board and 12 reserve bank presidents. That rate compares with their median estimate of 4 percent for where the rate should be at a time of full employment and stable prices.Inflation Objective

The Fed said that inflation had been running below its longer run objective of 2 percent. The central bank's preferred gauge of inflation climbed 1.4 percent in the year through July. It has not breached 2 percent since March 2012.

Kansas City Fed President Esther George dissented for the sixth meeting in a row, repeating that the policy risks creating financial imbalances.

Economists had forecast the FOMC would dial down monthly Treasury purchases by $5 billion, to $40 billion, while maintaining its buying of mortgage-backed securities at $40 billion, according to a Bloomberg News survey.

The yield on the 10-year Treasury note has climbed almost 1 percentage point since Bernanke's comments in May, when he first outlined a timeline for tapering, with yields on Sept. 6 exceeding 3 percent on an intraday basis for the first time since July 2011. That compares with 1.61 percent on May 1, and a record-low 1.38 percent in July 2012.

(Bloomberg News contributed to this story)

$3.2 Million Team Comes Back to Securities America

Securities America said early Tuesday that an advisor team led by Wayne Maier has returned to the broker-dealer, after spending the past six years with National Planning Corp.

Maier says that he and the five other reps on his team do more than $3.2 million in yearly fees and commission. They manage about $250 million in client assets and work on $200 million of retirement plan assets, as well, from their Bay City, Mich., office.

“We left because we thought we had unique opportunities at National Planning Corp.,” said Maier in an interview with ThinkAdvisor. “The cultural differences between a Midwest broker-dealer and a California company were something we were not prepared for.”

Maier adds that NPC is “phenomenal” to work with and “did nothing wrong.”  His team “was just not used to the fast-paced culture, so things didn’t mesh well.”

About a year ago, he reached out to Securities America, which was acquired by Ladenburg Thalmann (LTS) in 2011 from Ameriprise (AMP) and has about 1,750 advisors. Maier also discussed his situation and desire to move with several other broker-dealers “to see what was going on in the marketplace.”

Maier also stayed in touch with several executives at Securities America and discussed his plans to make a move with clients.

“We are pleased to have Wayne back, he is a great advisor who takes care of his clients, and he and his staff are consummate professionals,” said Gregg Johnson, senior vice president of branch office development and acquisitions for Securities America, in an interview.

“We think this sends a signal to those reps that have left for various reasons in past … of the value in what we are doing and improvements we continue t to make,” Johnson said. “It’s a strong signal to existing advisors, as well.”

(In June, advisors Shannon Case and Mark Slattery, who had left to affiliate with SII Investments from 2006-2013, came back to Securitiies America.)

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Securities America recruited advisors with about $35 million in trailing-12-month fees and commissions last year. This included 320 advisors and staff, helping make 2012 the firm’s fourth best in its past 29 years of recruiting, he says.

Forward Focus

As for this year, the BD is “on pace and cautiously optimistic that we can top last year’s results by 15% to 20% in terms of fees and commissions,” according to Johnson.

A key reason for this boost, he says, is that that Ladenburg Thalmann gives the broker-dealer access to asset management, investment banking, trust services and a fixed-income desk.

“The market sees the quality broker-dealer that Securities America is, and with the stable ownership and what Ladenburg Thalmann brings with it – in terms of additional products and services,” said Johnson. “We have lots of interest and traction in the market.”

Another boost is coming from advisors who feel they may have “outgrown their broker-dealer” and are looking for a partner to give them coaching and other tools to “take them to next level,” the executive notes.

But advisors don’t want a BD that’s “so large or growing to a size that means advisors are not getting same level of attention, care and service they want,” he says.

Johnson, an Iowa native, says that Securities America is indeed proud of its Midwest-based culture, but it is growing on the East and West Coasts, as well.  It’s also proud of the fact that it was one of the first BDs to allow hybrid RIAs to join.

“We have always fostered RIAs," he said. "It goes hand in hand with supporting the passion that advisors have to run their practices as they see fit.”

In July, Securities America teamed with NorthStar Financial Services Group to form Arbor Point Advisors, a joint venture that aims to “fill the gap” for independent advisors looking to operate via a hybrid-business model with a choice of custodial firms and without the need to run their own RIA.

The broker-dealer also hired three regional directors to focus on recruiting in New England, other parts of the Northeast and the Northwest.

Twitter Can't Lift Futures as Retail Sales Disappoints

NEW YORK (TheStreet) -- U.S. stock futures were pointing to a lower open on Friday morning after soft retail sales data and after a report emerged that President Obama plans to nominate former U.S. Treasury Secretary Larry Summers as the next Federal Reserve chairman.

Futures for the S&P 500 were sliding 0.36% to 1,679.

Futures for the Dow Jones Industrial Average were falling 0.31%, to 15,265. Nasdaq futures were dropping 0.09% to 3,173.

The Commerce Department reported Friday that August retail sales grew 0.2% month-over-month, and showed slower growth from the prior month's revised 0.4% clip. Economists surveyed by Thomson Reuters were expecting retail sales in August to rise 0.4%. Futures already were trending lower before the economic data as the report of a Summers appointment came from the Japanese newspaper, Nikkei, which cited unnamed sources. Market participants have viewed a possible Summers appointment as a more hawkish selection to lead the Fed than Vice Chairwoman Janet Yellen, despite the fact that Obama's former National Economic Council director has shown a willingness to continue monetary stimulus. Investors view the Fed's economic stimulus program as positive for equities, and analysts generally credit quantitative easing as part of the reason major U.S. equity markets reached recent all-time highs since a bottom in March 2009. Producer prices in August grew 0.3%, while the core rate increased at the same pace from a year ago at 1.2%, according to the Bureau of Labor Statistics. Economists were looking for producer prices to rise 0.2% in August after no change in July, while core prices were expected to rise 1.3%. In company news, micro-blogging platform Twitter announced Thursday afternoon that it had filed its S-1 confidential registration statement to the Securities and Exchange Commission as a first step toward listing on the public exchanges. Details were immediately unclear as the S-1, made possible by the Jumpstart Our Business Startups or JOBS Act, allows for companies that made less than $1 billion in prior-year revenue to file confidentially. JPMorgan Chase (JPM) plans to spend another $4 billion and commit 5,000 extra employees this year to address risk and compliance problems, The Wall Street Journal reported, citing sources.

Pandora (P) was a huge winner in Thursday's market as shares spiked more than 12% to $23.97 a share on Thursday after the company appointed Brian McAndrews, a former Microsoft executive, as its CEO.

-- Written by Joe Deaux in New York.

>Contact by Email.

Follow @JoeDeaux

The Only Five Warren Buffett Stock Purchases That Matter

Berkshire Hathaway Inc. (NYSE: BRK-B) and Warren Buffett disclosed their full equity holdings this week. The first thing we noticed was that there was a total equity value of $92.035 billion at the end of September, versus $89.03 billion at the end of June. What stood out was that there were really only about five transactions that really mattered . Still, they offer great insight and opportunity.

24/7 Wall St. wanted to identify the most important Buffett transactions of the past quarter. We wanted to see what the expected value is ahead for individual investors who may want to copy the Oracle of Omaha’s strategy. We also wanted to get inside Mr. Buffett’s head to see what he was thinking and how our readers can benefit.

The most important change was one we have called for endlessly, and we joked that Buffett finally took our suggestion. This was a new stake of Exxon Mobil Corp. (NYSE: XOM) with almost 40.1 million shares. We just outlined the 10 reasons he took such a big stake, and we would say that it seems likely that Team Buffett would only grow this stake through time. Shares were up yet another 1% on Friday trading to above $94.00, and the consensus analyst price target is $95.54. Note that some analysts see it rising to well over $100 in the year, or years, ahead. Buffett even made a statement in favor of Exxon, because he substantially lowered his stake in ConocoPhillips.

General Electric Co. (NYSE: GE) appears as a no-change on the portfolio at a mere 588,900 shares. What readers need to keep in mind is that Buffett recently took delivery of 12 million or so shares tied to the warrants from the preferred investment that he secured during the recession. GE is now spinning off its retail finance unit in an IPO in 2014, and the company aims to be evaluated as an industrial conglomerate rather than as an industrial company with a huge retail bank associated with it. GE shares were up almost 1% in mid-Friday trading at a new post-recession high. We think that Buffett will grow this stake, particularly if the value adjustment transition looks more likely.

Top Stocks To Own For 2014

Wells Fargo & Co. (NYSE WFC) is one stake that just continues to grow and grow. And it has grown yet again. After Friday’s mid-day gain of 1% to $34.50, this stake is now the largest by far and worth a hair over $20 billion. This means that Buffett is willing to have 21% of his entire equity holdings in one giant banking stock. Buffett obviously views this as the go-to mortgage play in America. He also likes that Wells Fargo does not have extensive trading operations that put the bank at as much perceived risk. The consensus price target from analysts is $46.00, which would be an all-time high. Buffett himself probably thinks Wells Fargo is worth even more, plus he gets the 2.8% dividend to boot that is actually a much higher yield for him if you tally up his average cost.

U.S. Bancorp (NYSE: USB) is nowhere near as large of a stake as Wells Fargo, but Warren Buffett keeps growing this stake as well. Its higher-end customer has to be attractive to Buffett. The stake grew to 79.11 million shares, versus a prior stake of 78.277 million shares. It had also been raised from 61.458 million shares prior to that. This stock was not reacting positively and was actually down $0.10 at $38.18 in mid-Friday trading. Still, its shares did briefly hit a new high of $38.39 on Friday. The consensus price target was $39.97 on last look, and new investors are getting a 2.4% yield here, even at these high prices.

DaVita HealthCare Partners Inc. (NYSE: DVA) was the last of most important stakes that was grown in the Berkshire Hathaway portfolio. This was officially listed as 31.446 million shares, and that was higher last quarter, but more recent filings show that the stake is now even larger. Buffett likes owning a piece of the leader in kidney dialysis centers, and the company even entered a standstill agreement whereby Berkshire Hathaway is not to take more than a 25% stake. That stake is now about 17%, and we would expect that to only grow ahead. Shares were at $58.90 mid-Friday, against a 52-week range of $52.23 to $65.67, and versus an analyst consensus price target of $61.42.

Dubai Stock Index Climbs to 3-Week High as Syria Concern Eases

Dubai's stock index surged to the highest in almost three weeks as the threat of an imminent attack on Syria eased after the U.S. and Russia reached an agreement to eliminate the country's chemical weapons.

The DFM General Index (DFMGI) climbed 4.8 percent to 2,659.93, the highest close since Aug. 26. The measure had plunged as much as 15 percent since reaching a five-year high on Aug. 25 on concern the U.S. would launch a military strike against Syria. Emaar Properties PJSC (EMAAR), the stock with the biggest weighting on the index, jumped 4.7 percent, while Deyaar Development (DEYAAR) PJSC surged 9.1 percent. Israel Corp. (ILCO) led gains in Tel Aviv.

Dubai's stocks posted the biggest swings in the world in the past month on concern a military strike would have repercussions in the oil-rich Middle East. U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov reached agreement yesterday on a framework for finding, securing and destroying Syrian President Bashar al-Assad's stocks of poison gas. The deal calls for early signs of progress, giving Assad one week to submit an inventory of his toxic weapons, and calls for inspections in Syria by November.

"The Syria crisis is well behind us now and the markets have adjusted to those dynamics," said Nayal Khan, head of institutional equity sales and trading at Naeem Brokerage. "A 15 percent to 20 percent downside since Syria was announced was a bit too much, certainly for Dubai."

Volatility

Dubai's measure has climbed 64 percent this year, more than any of the 50 largest equity markets, as the Persian Gulf business hub recovers from the credit crisis that led to a crash in property prices. Economic growth in the emirate is set to accelerate to 4.6 percent, on average, through 2015 helped by a rebound in tourism, trade and transport, government estimates show. That's more than twice as fast as the prior four years.

The Dubai index's 30-day volatility, a measure of fluctuations in Dubai's equities gauge, rose to 44 today, the highest since January 2010 and the most among 72 indexes tracked by Bloomberg. That's more than 10 points above the Philippines.

Saudi Arabia's All Share Index and Abu Dhabi's gauge gained 1.8 percent. Qatar's measure rose 1.7 percent, Kuwait's 1.9 percent, Oman's 0.7 percent and Bahrain's 0.3 percent. Egypt's EGX 30 climbed 0.5 percent.

Expo 2020

In Israel, the TA-25 Index (TA-25) gained 1.9 percent at the close in Tel Aviv as Israel Corp. jumped 9 percent, the most since July 2009, to 1,755 shekels. The shares soared along with those of its Israel Chemicals Ltd. (ICL) unit, which advanced 6.4 percent on speculation that a possible change in ownership of Russian potash producer OAO Uralkali could help stabilize prices of the crop nutrient.

Israel's government bonds were unchanged, with the yield on the benchmark 4.25 percent notes due March 2023 at 3.98 percent.

Dubai shares are also benefiting ahead of the emirate's Citiscape real-estate exhibition and amid expectations the sheikhdom will win the right to host the World Expo 2020, Khan said. "Dubai is miles ahead in terms of infrastructure and hotel room availability by 2020," he said.

Dubai is bidding against cities including Izmir in Turkey, and Sao Paulo to host the exhibition, which is held every five years and attracts millions of visitors. The winner will be announced in November.

Emaar rose to 6.02 dirhams, the highest since Aug. 26, and Deyaar soared to 61.4 fils, the highest since January 2010.

5 Things the Fed Hopes You'll Never Find Out

Most Americans assume the U.S. Federal Reserve is a powerful government institution that seeks only to safeguard the dollar, boost the economy and drive employment higher.

That's what the Fed wants you to think.

The illusion of the Fed as a stabilizing, positive government entity has more or less existed since its creation under dubious circumstances in 1913.

"It not only avoided the word bank, it cleverly implied federal, or government, control over the establishment of a pool of reserves that would backstop the new banking 'system,'" said Money Morning Capital Wave Strategist Shah Gilani.

Congress has played along the whole time, first by approving the legislation that created this beast and later by endowing the Fed with its "dual mandate" to combat both inflation and unemployment.

The real reasons the Fed was created, and many of the things it does to this day, would shock many Americans.

"If the American people truly understood how the Federal Reserve System works and what it has done to us, they would be screaming for it to be abolished immediately," Michael Snyder writes on his website, The Economic Collapse.

Five Shocking Facts About the Federal Reserve

1. It's Not Really Part of the Government

Few people realize that the Federal Reserve didn't even exist until about 100 years ago. It was cooked up by the top Wall Street bankers of the time in a secret meeting on an island in Georgia (A book about it is actually titled "The Creature of Jekyll Island.")

The bankers wanted a central bank partnered with the government to serve as a backstop for their institutions, which then were prone to panics and bank runs.

The 12 regional banks that make up the Federal Reserve are not owned by the U.S. Treasury, but by the nation's private banks. According to Factcheck.org, "about 38% of the nation's more than 8,000 banks are members of the [Federal Reserve] System, and thus own the Fed banks."

2. The Federal Reserve's Primary Purpose is to Serve the Banks

While the stated purpose of the Federal Reserve is its congressional "dual mandate," in practice serving the needs of the big banks still comes first.

"Central banks - of which the Federal Reserve is, by far, the world's largest and most powerful - serve banks first and foremost," Gilani said. "Secondly, they serve their host governments.  They are the ultimate tool of the rich and powerful."

Top Performing Stocks To Invest In Right Now

During the years of the financial crisis, for example, in addition to the well-publicized bailouts, the Fed made $16 trillion in little-known loans to more than a dozen big banks.

According to a Government Accountability Office document, some of the major beneficiaries included Citigroup Inc. (NYSE: C), which received $2.513 trillion in loans; Morgan Stanley (NYSE: MS), $2.041 trillion; Merrill Lynch, $1.949 trillion; Bank of America (NYSE: BOA), $1.344 trillion; Bear Stearns, $853 billion; Goldman Sachs Group Inc. (NYSE: GS), $814 billion; and JPMorgan Chase (NYSE: JPM), $391 billion.

3. The Federal Reserve is Paying Big Banks Billions in Interest

To fund its massive quantitative easing (QE) program, the Fed has encouraged banks to deposit excess reserves in the Fed's accounts. The big banks have been more than happy to comply (see chart), as they get paid interest on any money they park at the Fed. Last year, the Fed paid out about $4 billion in interest to the big banks; Bloomberg News has estimated that the annual payments to the banks could soar as high as $77 billion a year by 2015, depending on how much interest rates rise by then.

4. The Fed Has Destroyed the Dollar

The Federal Reserve has utterly failed in one of its mandates - to manage interest rates to control inflation.  Since its creation in 1913, inflation in the U.S. has eaten away 96% of the value of the dollar. So the same item that cost $100 in 1913 would cost nearly $2,300 today. And the problem has grown worse over time; the dollar has lost 83% of its value just since 1970. Since the financial crisis, the Fed has accelerated the process with inflation-fueling policies like QE and zero interest rates.

5. The Federal Reserve Enables Government's Profligate Spending

Washington could never have accumulated its $16.85 trillion national debt - which in recent years has grown at a rate of more than $1 trillion a year - without the help of the Federal Reserve. The Fed is essentially the mechanism through which federal debt is created and monetized, making it easy for the government to spend trillions of dollars beyond what it collects in taxes.  It's little wonder that Washington looks the other way when the Fed is giving special treatment to the big banks.

The story of the Fed is a lot juicier than people think. To find out exactly how the Federal Reserve came into existence, read Shah Gilani explain all the sordid details.

Related Articles and News:

Money Morning:
Why Crime Pays for "Too-Big-To-Fail" Banks Money Morning:
Why We Can't Avoid Ben Bernanke's "Monetary Cliff" Bloomberg:
Fed Seen Paying Banks $77 Billion on Reserves The Economic Collapse:
11 Reasons Why The Federal Reserve Should Be Abolished GAO:
The Federal Reserve System July 2011 Report

What the October Jobs Numbers Really Mean

Despite worries the 16-day government shutdown would weigh on job growth, the October jobs report was surprisingly strong.

That's what the government is reporting, anyway...

According to the Labor Department numbers released today (Friday), employers increased headcount by 204,000 in October, handily beating the 120,000 many economists expected. The government report also showed revisions to late summer numbers, revealing an extra 60,000 jobs total were created in August and September.

Although the October report included the robust 204,000 number, it was full of uninspiring data:

The labor force participation rate continues to drop. It slipped to 62.8% from 63.2%, last month, the lowest read since March 1978. An astonishing 932,000 - nearly 1 million Americans - dropped out of the labor force last month, bringing the rate to a fresh 35-year low. It marks the third-highest monthly increase in individuals leaving the labor force in U.S. history. "At this pace, the people out of the labor force will surpass the working Americans in about 4 years," writes ZeroHedge. October job gains were highest among the lowest-paying sectors. These are actually are a "net drag" on the economy, according to The Wall Street Journal, due to the amount of assisted government benefits these workers receive. A University of California, Berkley, and University of Illinois study found front-line workers at fast-food restaurants, and their families, received at least $7 billon annually in public benefits to supplement their wages. The federal government continued to trim workers, cutting 12,000 (one-third of which were at the U.S. Postal Service). That brings the year-to-date total to 94,000. Excluding the postal service, the October report showed federal jobs at the lowest level since 2009. The number of long-term unemployed held steady at 4.1 million, accounting for 36.1% of the unemployed. The number of temporary workers rose by nearly 500,000. The mushrooming number likely includes non-essential government employees and government contractors affected by the government shutdown. The number underscores the distorted picture the BLS report paints of the labor market, in part due to the thousands of federal workers furloughed during the payroll period upon which the jobs data is based. The unemployment rate rose to 7.3% from 7.2% in September. The official unemployment rate counts only those workers who are actively seeking work. If the same percentage of adults were in the workforce today as when U.S. President Barack Obama took office, the unemployment rate would be upwards of 10.8%, the Washington Post reports. What the Jobs Report Means to Markets

Best High Tech Stocks To Watch For 2014

October's seemingly swift job growth, coupled with the sizable upward revisions for the previous two months, fueled speculation that the U.S. Federal Reserve will soon take action to scale back its $85 billion a month asset purchase program. A taper was expected in September, but lackluster economic data prompted the Fed to pause.

"The Fed now has one more payroll report before its December meeting," Ian Shepherdson, chief economist at Pantheon Macroeconomic, wrote in a note to clients Friday. "Clearly, another report like this one will greatly increase the odds of tapering at that meeting. Our base case remains that it won't happen then, but the odds have sustainably improved already with the release of these numbers."

Sharing that sentiment is Robert Murphy, an economics professor at Boston College. Murphy told ABC News the Fed is likely to hold off its tapering of bond purchasing until next year due to the fact the first "clean" employment report won't be presented until early January, with December's data.

"November's report, due out in early December, will contain some 'bounce back' from the shutdown that will continue to cloud the Fed's interpretation of the state of the labor market, putting the Fed on hold at its next meeting in mid-December," Murphy said.

And with Yellen on her way in, it looks like more of the same for months to come... take a look...

Related Articles:

The Wall Street Journal:
Public Cost of Fast-Food Industry's Low Pay Remains Unclear ABC News:
Jobs Report Shows Unemployment Rate Ticked Up to 7.3%; 204,000 Jobs Added The New York Times:
Hiring Brisk in Jobs Data Skewed by U.S. Shutdown

Can Cisco and Wal-Mart Beat Earnings This Week?

Earnings season is in the process of winding down, but there are still some key earnings reports coming out. We are still getting key earnings and this week will bring the quarterly reports from Dow Jones Industrial Average components Cisco Systems Inc. (NASDAQ: CSCO) and Wal-Mart Stores Inc. (NYSE: WMT).

24/7 Wall St. wanted to offer previews for these two DJIA stocks. We also wanted to know if investors think they are worth their price based upon expectations and valuation.

Cisco Systems Inc. (NASDAQ: CSCO) reports earnings on Wednesday. At $23.51, its 52-week range is $16.69 to $26.49. We would also point out that the consensus analyst price target of $26.51 gives an implied upside of almost 13%. Cisco also has that 2.9% dividend yield to consider.

Thomson Reuters has estimates of $0.51 in earnings per share and $12.35 billion in revenue for Cisco. That would represent about 6% earnings per share growth and about 4% sales growth.

Top Canadian Companies To Watch In Right Now

Wal-Mart Stores Inc. (NYSE: WMT) recently closed at $77.96 against a 52-week range of $67.37 to $79.96. Its consensus analyst price target is up at $81.77. Wal-Mart is an economic indicator on its own right now because it sales are so large. The biggest challenge for Wal-Mart is that it has been lowering its expectations, or at least that is the perception after reports on its expectations.

Thomson Reuters has estimates of $1.13 in earnings per share and $116.75 billion for Wal-Mart. This represents growth expectations of about 4% in earnings and 2.5% in sales.

Top Small Cap Stocks For 2014

On Monday, Goldman Sachs upgraded the whole steel sector from Cautious to Neutral and specifically upgraded small cap and mid cap steel stocks AK Steel Holding Corporation (NYSE: AKS), United States Steel Corporation (NYSE: X) and Steel Dynamics Inc. (NASDAQ: STLD) to Buy with price targets of $6, $30 and $22, respectively, but should you go for one of these individual steel stocks or for the Market Vectors Steel ETF (NYSEARCA: SLX)? To begin with, Goldman Sachs says that the�supply-demand fundamentals for steel are starting to look more appealing as some supply has been taken out plus they have a very bearish view on input costs (as in iron ore)���which bodes well for steel producers in the long run. Moreover, recently filed trade cases could provide some tailwind���if they are successful.�Of course a rising tide can lift all ships, but Goldman Sachs suggests that you go for the following�small cap or mid cap steel stocks:�

Top Small Cap Stocks For 2014: Texas Instruments Incorporated(TXN)

Texas Instruments Incorporated engages in the design and sale of semiconductors to electronics designers and manufacturers worldwide. The company?s Analog segment offers high-performance analog products comprising standard analog semiconductors, such as amplifiers, data converters, and interface semiconductors; high-volume analog and logic products; and power management semiconductors and line-powered systems. Its Embedded Processing segment includes DSPs that perform mathematical computations to process and enhance digital data; and microcontrollers, which are designed to control a set of specific tasks for electronic equipment. The company?s Wireless segment designs, manufactures, and sells application processors and connectivity products. Its Other segment offers smaller semiconductor products, which include DLP products that are primarily used in projectors to create high-definition images; and application-specific integrated circuits. This segment also provides handhe ld graphing and scientific calculators, as well as licenses technologies to other electronic companies. The company serves the communications, computing, industrial, consumer electronics, automotive, and education sectors. Texas Instruments Incorporated sells its products through a direct sales force, distributors, and third-party sales representatives. It has collaboration agreements with PLX Technology Inc.; Neonode, Inc.; and Ubiquisys Ltd. The company was founded in 1938 and is headquartered in Dallas, Texas.

Advisors' Opinion:

• [By Alyssa Oursler]

  But a few dreamy stocks have have provided double rewards for loyal shareholders so far in 2013.�Texas Instruments�(TXN),�Seagate Technology�(STX),�Paychex�(PAYX),�Lockheed Martin�(LMT) and Blackstone Group (BX) are five dividend stocks that have been anything but sleepy so far this year.

Top Small Cap Stocks For 2014: Achillion Pharmaceuticals Inc.(ACHN)

Achillion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of treatments for infectious diseases. The company focuses on the development of antivirals for the treatment of chronic hepatitis C; and the development of antibacterials for the treatment of resistant bacterial infections. Its drug candidates for the treatment of chronic HCV include ACH-1625, a protease inhibitor, which is in phase IIa clinical trial for the treatment of chronic HCV; ACH-2684, a pangenotypic protease inhibitor, which is in phase I clinical trial for the treatment of chronic HCV infection; and NS5A inhibitors for the treatment of chronic HCV infection, including ACH-2928, which is to enter a phase I clinical trial, as well as various additional NS5A inhibitors in preclinical development. Its pipeline of product candidates also includes ACH-702 and ACH-2881 for drug resistant bacterial infections; elvucitabine for HIV infection; and AC H-1095 for HCV infection. The company was founded in 1998 and is based in New Haven, Connecticut.

Advisors' Opinion:

• [By Keith Speights]

  2. Achillion Pharmaceuticals (NASDAQ: ACHN  )
  Achillion recently experienced a delay in the game that it had hoped to play. The FDA placed a clinical hold on hepatitis C drug sovaprevir after patients in a phase 1 drug-drug interaction study with the drug combined with ritonavir-boosted atazanavir were found to have elevated liver enzyme levels. Shares dropped 25% in one day as a result.

• [By Dan Carroll]

  Few biotechs were hit as hard as Achillion Pharmaceuticals (NASDAQ: ACHN  ) this week, however. Achillion makes up around 2% of the weight of the SPDR Biotech ETF, and its 7.5% loss this week was a major reason for the fund's fall. This stock has failed to capitalize on the markets' surge this year, losing 10% year-to-date. The company only recently named a new CEO, lifting its former R&D head and chief science officer to the top job. Achillion's still in the developmental stage of its life and thus produces no revenue, and the company's cash burn makes it seem likely that more share dilution is on its way as the company looks to advance its hepatitis-C pipeline over the coming years. Until Achillion produces some meaningful results from that pipeline, this stock will remain a risky play in an already risky space.

• [By Grace L. Williams]

  We took a look at Achillion Pharmaceuticals (ACHN) after two directors bought 40,000 shares for $394,800. Dennis Liotta bought 20,000 shares for $158,100 and Jason Fisherman bought 20,000 shares for $155,000. InsiderScore gave Liotta a nod, writing, ��iotta has been a smart buyer at Achillion in the past. He bought the same number of shares here, this time at a price 28% higher, which is the highest price he has paid for shares.��/p>

• [By Lauren Pollock]

  Among the companies with shares expected to actively trade in Monday’s session are Achillion Pharmaceuticals Inc.(ACHN), Active Network Inc.(ACTV) and Harvest Natural Resources Inc.(HNR)

Best Penny Stocks To Invest In Right Now: InterDigital Inc.(IDCC)

Interdigital, Inc. engages in the design and development of digital wireless technology solutions. The company offers technology solutions for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, and IEEE 802-related products and networks. It holds patents related to the fundamental technologies that enable wireless communications. The company licenses its patents to equipment producers that manufacture, use, and sell digital cellular and IEEE 802-related products; and licenses or sells mobile broadband modem solutions, including modem IP, know-how, and reference platforms to mobile device manufacturers, semiconductor companies, and other equipment producers that manufacture, use, and sell digital cellular products. InterDigital?s solutions are incorporated in various products comprising mobile devices, such as cellular phones, tablets, notebook computers, and wireless personal digital assistants; wireless infrastructure equipment, such as base stations; and components, dongles, and modules for wireless devices. The company was founded in 1972 and is headquartered in King of Prussia, Pennsylvania.

Advisors' Opinion:

• [By Evan Niu, CFA]

  What: Shares of InterDigital (NASDAQ: IDCC  ) have gotten crushed today by as much as 20% after the company lost a patent suit against several smartphone makers.

• [By CRWE]

  InterDigital, Inc. (NASDAQ:IDCC) reported that certain of its subsidiaries have completed the previously announced sale of roughly 1,700 patents and patent applications to Intel Corporation for $375 million in cash.

• [By Alex Planes]

  Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does InterDigital (NASDAQ: IDCC  ) fit the bill? Let's take a look at what its recent results tell us about its potential for future gains.

Top Small Cap Stocks For 2014: EZchip Semiconductor Limited(EZCH)

EZchip, a fabless semiconductor company, engages in the development and marketing of Ethernet network processors for networking equipment. Its products include network processor chips, evaluation boards and network-processor based systems, and development software toolkits. The company offers network processors for use in forming the silicon core of networking equipment, such as switches and routers; and for voice, video and data integration in various applications. Its network processors are single-chip solutions, which enable its customers to design multi-port line cards, such as processing and classification engines, traffic managers, media access controllers, as well as a range of specialized hardware blocks that accelerate various functions. The company offers Evaluation systems which enable customers to test NPU-based systems; and toolkits that assist customers in creating, verifying, and implementing solutions based on its network processors. It provides a library f eaturing data plane code for a range of applications, which include Metro Ethernet protocols, Multi-Protocol Label Switching, IPv4 and IPv6 routing, Access Control Lists, GPON/EPON OLT functionality, Network Address Translation, and Server Load Balancing. The company sells its products directly, and through contract manufacturers and distributors to network equipment vendors. It markets its products in Israel, China, Hong Kong, the Far East, Canada, the United States, and Europe. The company was formerly known as LanOptics Ltd. and changed its name to EZchip Semiconductor Ltd. in July 2008. EZchip Semiconductor Ltd. was founded in 1989 and is based in Yokneam, Israel.

Advisors' Opinion:

• [By Lisa Levin]

  EZchip Semiconductor (NASDAQ: EZCH) shares climbed 5.80% to $23.53. The volume of EZchip Semiconductor shares traded was 635% higher than normal. EZchip Semiconductor's PEG ratio is 1.57.

• [By Jake L'Ecuyer]

  EZchip Semiconductor (NASDAQ: EZCH) was also up, gaining 7.16 percent to $24.11 after a Cisco (NASDAQ: CSCO) announced a new product that would not threaten the company as previously thought. Equities Trading DOWN
  Shares of Cypress Semiconductor (NASDAQ: CY) were down 16.05 percent to $9.91 after the company lowered its Q3 forecast.

• [By Paul McWilliams]

  Paul McWilliams: Oh, absolutely. Another company that most investors probably have never heard of is a tiny little Israeli semiconductor company named EZChip (EZCH).

Top Small Cap Stocks For 2014: KongZhong Corporation(KONG)

KongZhong Corporation, together with its subsidiaries, provides wireless interactive entertainment, media, and community services to mobile phone users in the People's Republic of China. It also involves in the development, distribution, and marketing of consumer wireless value-added services, including wireless application protocol, multimedia messaging services, short messaging services, interactive voice response services, and color ring back tones. In addition, it offers interactive entertainment services, such as mobile games, pictures, karaoke, electronic books, mobile phone personalization features, entertainment news, chat, and message boards; and through Kong.net offer news, community services, games, and other interactive media and entertainment services; and sells advertising space in the form of text-link, banner, and button advertisements. Further, the company develops and publishes mobile games, including downloadable mobile games and online mobile games cons isting of action, role-playing, and leisure games. As of December 31, 2009, it had a library of approximately 300 internally developed mobile games. Additionally, it develops online games; and provides consulting and technology services, as well as media and net book services. The company was formerly known as Communication Over The Air Inc. and changed its name to KongZhong Corporation in March 2004. KongZhong Corporation was founded in 2002 and is headquartered in Beijing, the People?s Republic of China

Advisors' Opinion:

• [By Roberto Pedone]

  One under-$10 wireless services player that looks poised for a big spike higher is KongZhong (KONG), which is a provider of WVAS and mobile games to mobile phone users and a wireless media company providing news, content, community and mobile advertising services through its wireless Internet sites in the PRC. This stock is off to a hot start in 2013, with shares up sharply by 53%.

  If you take a look at the chart for KongZhong, you'll notice that this stock has been downtrending badly for the last two months, with shares plunging lower from its high of $14.92 to its recent low of $7.78 a share. During that downtrend, shares of KONG have been consistently making lower highs and lower lows, which is bearish technical price action. That move has now pushed shares of KONG into oversold territory, since its current relative strength index reading is 30.21. Shares of KONG are now starting to spike higher off its recent low of $7.78 a share and off its 200-day moving average of $7.95 a share. This spike could be signaling that the downside volatility for KONG is over in the short-term and the stock is ready to trend higher.

  Traders should now look for long-biased trades in KONG if it manages to break out above some near-term overhead resistance at $8.50 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 519,857 shares. If that breakout triggers soon, then KONG will set up to re-test or possibly take out its next major overhead resistance levels at $10 to its 50-day moving average at $11.33 a share.

  Traders can look to buy KONG off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $7.78 a share. One can also buy KONG off strength once it takes out $8.50 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

• [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 Kongzhong (Nasdaq: KONG  ) , whose recent revenue and earnings are plotted below.

Top Small Cap Stocks For 2014: Petroquest Energy Inc(PQ)

PetroQuest Energy, Inc. operates as an independent oil and gas company. It engages in the acquisition, exploration, development, and operation of oil and gas properties in Oklahoma, Arkansas, and Texas, as well as onshore and in the shallow waters offshore the Gulf Coast Basin. As of December 31, 2009, the company had estimated proved reserves of 1,931 thousand barrels of oil and 167,361 million cubic feet equivalent of natural gas. It owned working interests in 9 net producing oil wells and 277 net producing gas wells. PetroQuest Energy was founded in 1983 and is headquartered in Lafayette, Louisiana.

Advisors' Opinion:

• [By Jon C. Ogg]

  PetroQuest Energy Inc. (NYSE: PQ) was downgraded to Neutral from Overweight at J.P. Morgan.

  Rubicon Technology Inc. (NASDAQ: RBCN) was downgraded to Underperform from Perform at Oppenheimer.

Top Small Cap Stocks For 2014: China Metro-Rural Holdings Limited(CNR)

China Metro-Rural Holdings Limited, through its subsidiaries, primarily engages in the development and operation of agricultural logistics and trade centers in northeast China. It also involves in purchasing, processing, assembling, merchandising, and distributing pearls and jewelry products. The company markets its pearls and jewelry products to wholesale distributors and mass merchandisers in Europe, the United States, Hong Kong, and other parts of Asia. In addition, it develops, sells, and leases residential and commercial properties in Hong Kong and the People?s Republic of China. The company is based in Tsimshatsui, Hong Kong.

Advisors' Opinion:

• [By Katie Brennan]

  Canadian National Railway Co. (CNR) added 0.9 percent to C$104.93 and Canadian Pacific Railway Ltd. rose 1.7 percent to C$131.73.

  Niko Resources surged 3.4 percent to $8.64 after the company entered an agreement for a $60 million loan that will be funded by a group of institutional investors. Net proceeds from the loan will be used to fund working capital requirements.

Top Small Cap Stocks For 2014: ATA Inc.(ATAI)

ATA Inc., through its subsidiaries, provides computer-based testing services in the People?s Republic of China. It offers services for the creation and delivery of computer-based tests utilizing its test delivery platform, proprietary testing technologies, and testing services; and provides logistical support services relating to test administration. The company?s computer-based testing services are used for professional licensure and certification tests in various industries, including information technology (IT) services, banking, securities, teaching, and insurance. Its e-testing platform integrates various aspects of the test delivery process for computer-based tests ranging from test form compilation to test scoring, and results analysis. ATA also provides career-oriented educational services, such as single course programs, degree major course programs, and pre-occupational training programs focusing on preparing students to pass IT and other vocational certification tests; test preparation and training programs and services to test candidates preparing to take professional certification tests in securities, futures, banking, insurance and teaching industries; online test preparation and training platform for the securities and banking industries; and test preparation software for the teaching industry. In addition, the company offers HR select employee assessment solution, an online system that utilizes its proprietary software and an inventory of test titles to help employers improve the efficiency and accuracy of their employee recruitment process. As of March 31, 2010, it had contractual relationships with 1,988 ATA authorized test centers. The company serves Chinese governmental agencies, professional associations, IT vendors, and Chinese educational institutions, as well as individual test preparation services. ATA Inc. was founded in 1999 and is based in Beijing, the People?s Republic of China.