Boeing Warns Airlines of Icing Issue with GE Engines

On Friday The Boeing Co. (NYSE: BA) notified customers for its 747-8 and 787 Dreamliner that planes equipped with the GEnx engine from General Electric Co. (NYSE: GE) could have an icing problem if the planes flew too close to high-altitude thunderstorms. Japan Airlines (JAL) on Saturday said it would replace the  Dreamliners on two of its routes in the coming week.

Other airlines that could be affected include Lufthansa, United Continental Airlines Co. (NYSE: UAL), and Cathay Pacific, all of which fly the same routes on which JAL will switch out its planes. For now those routes are between Tokyo and Delhi and Tokyo and Singapore.

Since April six airplanes using the GEnx engines have temporarily lost thrust in high-altitude icing conditions according to a report at Bloomberg News. Ice crystals can build up behind the front engine fan causing a temporary loss of thrust. Five 747s and one 787 have reported loss of thrust at high altitude, but there have been no accidents reported as a result of the problem.

The temporary solution is to avoid flying within 50 nautical miles of a high-altitude thunderstorm, but GE said it is working on a software fix that it hopes will solve the issue. According to GE the number of commercial planes now in the air has led to an increased number of icing reports, particularly from tropical regions. We are to conclude then that this is not an engine problem but rather an act of God?

Another Japanese carrier, All Nippon Airways (ANA), also flies Dreamliners, but those planes use engines from Rolls Royce which have not experienced a similar icing problem.

ANA is Boeing's largest customer for the Dreamliner and JAL is the aircraft maker’s second largest. Both were hit hard by the three-month grounding of the planes earlier this year due to a battery problem that caused cockpit fires.

Mid-Day Movers: World Wrestling Entertainment Jumps 10% on Earnings Beat; Oshkosh Falls 12% on Falling Military Sales

Stocks have battled back to little changed after falling this morning, as stocks like World Wrestling Entertainment (WWE) and Oshkosh (OSK) make big moves.

Courtesy of Bonhams

The S&P 500 has gained 0.03% to 1,763.79v at 12:26 p.m., while the Dow Jones Industrial Average has dipped 0.04% to 15,613.29.

No need to wrestle with World Wrestling Entertainment’s earnings–the market likes what it sees. Shares of the company formerly known as the World Wrestling Federation have surged 9.6% to $12.98 today after it said its profits fell but revenue surged.

Atlas Air Worldwide (AAWW) has plunged 21% to $38.63 following its announcement that it would earn less this year than it had previously expected.

Oshkosh has dropped 12% to $46.25 after it reported a profit of 49 cents a share, missing forecasts for 590 cents, as sales of military vehicles plunged.

Discovery Communications (DISCA) has gained 4.9% to $88.48 after the company reported a profit of 80 cents a share, beating forecasts for 72 cents.

Cardinal Health (CAH) has gained 4.1% to $57.96 after it beat earnings forecasts and raised it 2014 guidance. It also said it would buy back more shares.

There's Good News In the Foreclosure Numbers

Home foreclosures are still high, but they’re falling and falling fast. That’s potentially good news for the economy.

Real estate research firm CoreLogic reported on Wednesday that a total  of 45,000 homes were foreclosed on in December, down 14 percent from December 2012 and 4.1 percent from November 2013. For the year overall.

For the year, 620,111 homes were foreclosed on, down 24.4 percent from 2012 and the lowest level since 2007.

Falling foreclosure levels help support home prices. They also reflect a far more stable jobs market nationally than in the depths of the Great Recession.

The national unemployment rate was 6.7 percent in December, down from a  10 percent peak in October 2009. Some 7.6 million jobs have been added to the economy since payroll employment bottomed in February 2010.

CoreLogic said the inventory of foreclosed home nationally fell to  837,000, or 2.1 percent of all homes, from 1.2 million homes, or 3 percent of homes in December 2012. That’s a decline of 30.5 percent and the 26th consecutive month of year-over-year declines. But there were pockets of weakness, including New York, New Jersey and New York. Their foreclosure inventories were above 4 percent of all homes.

All 50 states saw their foreclosed inventories drop in 2013. States with the largest drops in foreclosed inventory were California (down 54.6 percent), Arizona (down 46.8 percent) and Colorado (45.7 percent).

For CoreLogic, the data suggest the national housing market has started  a recovery after basically collapsing between 2008 and 2011. While the  company sees the recovery continuing in 2014, CEO Anand Nallathambi  warned “we expect progress to remain very slow.”

Best Stocks To Invest In

After big price increases in 2013 in most markets, most real estate  economists see price gains dropping to around 5 percent.

3 Stocks Spiking on Unusual Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

>>5 Stocks Set to Soar on Bullish Earnings

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

>>5 Stocks Ready to Break Out

With that in mind, let's take a look at several stocks rising on unusual volume recently.

Clearfield

Clearfield (CLFD) manufactures, markets, and sells standard and custom passive connectivity products to the fiber-to-the-premises, large enterprises, and original equipment manufacturers markets in the U.S. This stock closed up 7.5% to $21.59 in Monday's trading session.

Monday's Volume: 206,000

Three-Month Average Volume: 97,341

Volume % Change: 175%

>>5 Rocket Stocks for a Volatile Week

From a technical perspective, CLFD spiked sharply higher here and broke out into new 52-week-high territory with strong upside volume flows. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $10.35 to its intraday high of $22.13. During that move, shares of CLFD have been consistently making higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in CLFD as long as it's trending above $20 or above $19 and then once it sustains a move or close above Monday's high of $22.13 with volume that hits near or above 97,341 shares. If we get that move soon, then CLFD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $24 to $25.

Sovran Self Storage

Sovran Self Storage (SSS) operates as a real estate investment trust (REIT). It engages in the acquisition, ownership, and management of self-storage properties in the U.S. This stock closed up 1.2% to $64.20 in Monday's trading session.

Monday's Volume: 529,000

Three-Month Average Volume: 177,626

Volume % Change: 203%

>>5 Stocks Under $10 Set to Soar

From a technical perspective, SSS bounced modestly higher here right above some near-term support at $62.66 with above-average volume. This stock recently put in a triple bottom chart pattern, with shares of SSS finding buying interest over the last two months at $62.42, $62.35 and $62.66. Shares of SSS are now starting to bounce higher off those support levels with volume and the stock is quickly moving within range of triggering a near-term breakout trade. That trade will hit if SSS manages to take out Monday's high of $64.47 to its 50-day moving average of $64.93 with high volume.

Traders should now look for long-biased trades in SSS as long as it's trending above those key near-term support levels at $62.66 or $62.35 and then once it sustains a move or close above those breakout levels with volume that's near or above 177,626 shares. If that breakout hits soon, then SSS will set up to re-test or possibly take out its next major overhead resistance levels at $66.61 to its 200-day moving average at $67.82. Any high-volume move above those levels will then give SSS a chance to tag $70 to $72.

Charter Communications

Charter Communications (CHTR), through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the U.S. This stock closed up 4.1% to $136.92 in Monday's trading session.

Monday's Volume: 4.42 million

Three-Month Average Volume: 938,508

Volume % Change: 360%

From a technical perspective, CHTR ripped higher here right above some near-term support at $130.58 and back above its 50-day moving average of $132.44 with heavy upside volume. This move briefly pushed shares of CHTR into breakout territory, after the stock flirted with some near-term overhead resistance at $138.28. Shares of CHTR closed just below that level at $136.92. Market players should now look for a continuation move higher in the short-term if CHTR manages to take out Monday's high of $140.74 with high volume.

Traders should now look for long-biased trades in CHTR as long as it's trending above its 50-day at $132.44 or above more near-term support at $130.58 and then once it sustains a move or close above $140.74 with volume that's near or above 938,508 shares. If we get that move soon, then CHTR will set up to re-test or possibly take out its 52-week high at $144.02. Any high-volume move above that level will then give CHTR a chance to tag $150 to $155.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>4 M&A Deal Stocks to Watch in 2014

>>3 Tech Stocks Under $10 Spiking Higher

>>3 Huge Stocks to Trade (or Not)

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.

Boeing Drops 2%: Will Earnings Disappoint?

Boeing (BA) sits just 5.1% off its 52-week high. It’s releasing earnings this month Put the two together, and you have a recipe for weakness. Boeing has dropped 1.7% to $113.45 at 11:22 a.m., making it the biggest loser in the Dow Jones Industrial Average.

Bloomberg News

RBC Capital Markets’ Robert Stallard thinks the earnings report could help push Boeing’s shares higher. He writes:

After a strong share price run this year, we think the challenge for Airbus and Boeing is to maintain this momentum. The 3Q results could help, though any upside is likely to come from internal efforts on cash and margins, versus revenues. The strength in large jets is likely to remain in stark contrast with business jets, where we are expecting another weak quarter for demand in small cabin, with a steadier performance in the mid and large cabin segment. The NBAA show during the earnings season could see some interesting new product launches, which have historically helped stimulate demand.

As for Boeing specifically, Stallard explains why the quarter should look good:

We expect another good result from BCA after it delivered 170 aircraft in the quarter, one more than in 2Q13. We could see performance at BCA, not withstanding potential margin dilution from 787 deliveries, partially offset by DoD budget related declines in its defense business. However, the impact of the sequester is likely to remain muted until next year, and the impact will likely be more significantly felt in the defense order book. The focus has increasingly shifted to cash generation and deployment, so progress on that front would be welcome. We could see Boeing firming up or increasing its commitment to returning cash to shareholders via the buy back. Our "core" EPS estimate for 3Q13 has been increased from $1.48 to $1.55 on higher BCA deliveries.

Of course, the government shutdown and debt-ceiling showdown have impacted Boeing’s stock, as well as other defense contractors. Stallard explains how who could be affected:

With the debt ceiling looming next week, we could see investor nerves rattling as the deadline approaches – and some of this appears to have shaken sentiment in defense. This is likely to contrast with 3Q earnings, which we expect to be as resilient as those seen in the first two quarters of the year for late cycle contractors. By contrast, services are likely to have again been weak, and we are not getting our hopes up over bookings and any preliminary thoughts on 2014, especially for shorter cycle, less visible areas.

Stallard sees KEYW Holding (KEYW) and Textron (TXT) potentially missing earnings, while Honeywell (HON),  Alliant Techsystems (ATK), Lockheed Martin (LMT), Raytheon (RTN) and Wesco Aircraft (WAIR) could beat.

Wells Fargo Downgrades Travelers Co. to “Market Perform” (TRV)

Travelers Companies Inc (TRV) was downgraded by analysts at Wells Fargo on Thursday, as they believe shares of the insurance provider will lose some steam going forward.

The analysts downgraded TRV from “Outperform” to “Market Perform” and see shares reaching a valuation range of $89-$92, down from the previous target range of $94-$98. This new price target range suggests a 6% to 10% upside to the stock’s Wednesday closing price of $83.73.

Furthermore, the analysts note that TRV is up 41% since they started recommending the stock in January 2012, versus a 32% gain for the S&P 500. “Travelers has been a leader in gaining commercial lines renewal rate increases utilizing a disciplined, segmented approach. Yet as TRV reaches rate adequacy across more of its segmentation bands, we think there is less profit leverage, which could slow multiple expansion going forward.”

Travelers shares were inactive during pre-market trading on Thursday. The stock is up 16.58% year-to-date.

Sirona Dental Systems, Inc. Sinks Its Teeth Into Rising Demand

Dentists may find that patients are more willing to spend on restorative procedures now that the job market is recovering and consumer sentiment is heading higher. That offers new opportunities for providers of dentistry equipment, such as Sirona Dental Systems (NASDAQ: SIRO  ) , a company that was spun out of Siemens in 1997 and brought public in 2006.

If recent trends in employment and confidence continue, pent-up demand from consumers for dentistry could benefit a variety of other suppliers, too, including Align Technology  (NASDAQ: ALGN  ) , 3M (NYSE: MMM  ) , and Danaher (NYSE: DHR  ) .

Turning a corner toward demand growth
After climbing 1.8% per year from 2002 through 2008, spending on dentistry slipped 0.3% per year from 2008 through 2011. Contributing to that sluggish U.S. spending growth was a lack of adequate insurance coverage. Roughly two-thirds of American adults don't have dental plans. That gap in coverage and typically higher out-of-pocket expenses for those who do have plans means slower sales when consumers retrench.

But that dynamic may be changing as the unemployment rate slips lower and consumer confidence climbs. Unemployment fell to 6.7% from 7.9% a year ago in December, and the Conference Board's sentiment index stood at 78.1 last month -- the best year-end reading in six years.

Growing sales this past year
Despite a 100-year history serving dentists, Sirona isn't as widely known among investors as maybe it should be. The company is one of the biggest makers of dental products, including CAD/CAM systems for restoration, X-ray systems, beds, and preventative care instruments. That diverse product lineup produced $979 million in fiscal 2012 sales and $1.1 billion in fiscal 2013 revenue, including a record $279 million in sales last quarter. http://www.sirona.com/en/investors/investor-news/ See Q4 pdf http://www.sirona.com/en/investors/investor-news/

Sirona's fastest growth has come from its CAD/CAM systems in the past year. Sales of those systems, which are used to design replacement teeth, jumped 22% year over year in fiscal 2013. The company sold $107 million worth of CAD/CAM products during the third quarter, up 35% year over year thanks to trade-ins and new customers.

Sirona also saw sales of its X-ray systems grow double digits, climbing 10% in the past year. Sales of the company's imaging products totaled $97 million last quarter. Revenue from its beds, referred to as treatment centers, grew 7%, and instrument sales improved by 1% in fiscal 2013, too.

Sales in the United States were particularly strong, with sales improving 18% in the past year. Demand from Germany, where sales climbed 23%, helped overseas sales climb nearly 10%, too.

Competing firms are also seeing sales grow
Align Technology, one of the best performing medical-equipment companies last year, saw sales climb to $165 million in the third quarter, up 20%. That growth came thanks to its well-known Invisalign brand orthodontics, which account for 93% of the company's sales. That performance has Align guiding the Street to expect fourth-quarter unit volume growth of 21% to 24% when it reports results on Jan. 30. 

The far more diversified 3M, which sells a wide array of products for preventative care and orthodontics, is also enjoying sales growth for its medical business. Across dental and medical clinics, and hospital customers, 3M's health-care sales were up 5.5% in the third quarter and 4.3% over the first nine months of 2013 versus the prior year. 

Similarly, Danaher's dental business saw its sales grow from $489 million last year to $510 million in the third quarter this year. Revenue from dental products grew from $1.45 billion in 2012 to $1.5 billion over the first nine months of 2013. About 1.5% of the 3.5% growth in nine-month sales came thanks to product price increases. But the rest came from volume growth, including low-single-digit percentage growth for Danaher's dental equipment. Overall, Danaher's sales were up in all its major dentistry product categories last quarter, driven by strong demand in North America.

Converting sales into profit
Sirona's profit margin was about the same as fiscal 2012, at 53.7% in fiscal 2013. That was up 0.2% and worked out to earnings per share of $3.41, up 12% from $3.03 last year.

The fact earnings grew more quickly than sales is a good sign and is likely to continue in fiscal 2014. Sirona is forecasting that sales will grow by low mid-single digits this year, good enough to deliver $3.60-$3.70 in earnings per share. That would suggest earnings will outpace sales growth by at least a few percentage points at the low end of its guidance.

Fool-worthy final thoughts
The predictability of Sirona's business, solid margin, and a net cash position of $167 million allowed the company to boost its share buyback program by $100 million exiting the third quarter. Of course, for Sirona, Align, 3M, and Danaher to outpace their growth forecasts, the economy will need to keep improving. If it does, the industry should see preventative and restoration dental demand climb over the coming years, given that large number of potential patients from the aging population.  

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Hot Safest Companies To Watch In Right Now

BOSTON (TheStreet) -- There's nothing worse than you or a loved one falling victim to crime, so here's a look at five U.S. communities you can move to where murders, rapes or less-serious incidents such as car thefts rarely occur.

"These places are fantastic choices if you're looking for a safe and stable community," says Andrew Schiller of NeighborhoodScout.com, which recently named the Safest Cities in the U.S. by analyzing crime data for every community with 25,000 residents or more.

NeighborhoodScout compiles its list each year by reviewing crime statistics that local police departments report to the FBI covering all murders, robberies, aggravated assaults, burglaries, larceny/thefts auto thefts and forcible (as opposed to statutory) rapes.

Hot Safest Companies To Watch In Right Now: Under Armour Inc.(UA)

Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

Advisors' Opinion:

• [By Rich Smith]

  On the plus side, though, one analyst is naming Under Armour (NYSE: UA  ) a winner. Let's start the week's final trading day off on a bright note and begin with that one:

• [By Jon C. Ogg]

  Questcor Pharmaceuticals Inc. (NASDAQ: QCOR) and Under Armour Inc. (NYSE: UA) may seem to have little to nothing in common on the surface. Questcor is in the pharmaceutical business, while Under Armour is the sports apparel and casual wear business. The world has now seen that Onyx Pharmaceuticals Inc. (NASDAQ: ONXX) is being acquired for some $10.4 billion. The commonality between Questcor and Under Armour is that they were featured on the same recent high growth list of public companies expected to double their revenues over the next two to four years.

• [By WALLSTCHEATSHEET.COM]

  Under Armour provides athletic apparel, footwear, and accessories to a growing health and wellness, athletic, and fitness enthusiast population around the world. The stock has been on a powerful move towards higher prices that has led to it trading at all-time highs. Earnings and revenue figures have increased over most of the last four quarters which has led to excited investors. Relative to its peers and sector, Under Armour has led in year-to-date performance by a wide margin. Look for Under Armour to OUTPERFORM.

• [By Johanna Bennett]

  Investors also�bid up shares of Under Armour (UA) to $80.31, a 1.5% rise. And athletic-gear retailer Finish Line (FINL) jumped 7.3% to $24.02 following their own earnings homerun.

Hot Safest Companies To Watch In Right Now: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

Advisors' Opinion:

• [By CRWE]

  Fluor Corporation�� (NYSE:FLR) Chairman and Chief Executive Officer, David Seaton, and Chief Financial Officer, Biggs Porter, will give a presentation to investors at the Credit Suisse 2012 Engineering & Construction Conference in New York on Thursday, June 7 at 9:00 a.m. Eastern Daylight Time.

• [By Louis Navellier]

  If we look at the sector using Portfolio Grader, we see that many of the big names in the group like Flour (FLR), Granite Construction (GVA) and KBR incorporated (KBR) are rated ��ell.��The anticipated spending for both government and private industry simply hasn�� materialized, and the companies are not seeing revenue or profit growth.

10 Best Heal Care Stocks To Buy For 2014: Petroleo Brasileiro S.A.- Petrobras(PBR)

Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.

Advisors' Opinion:

• [By Tyler Crowe]

  While there are some disadvantages to being a national oil company, there are also some pretty cushy perks as well. Thanks to its position in Brazil, Petrobras (NYSE: PBR  ) just got some big relief as a court ruling determined that it is not obligated to pay an outstanding tax bill of $3.45 billion. This should be a huge help as the company looks to make big gains in production in the upcoming years thanks to the pre-salt formation in offshore Brazil.

• [By Jon C. Ogg]

  Petr贸leo Brasileiro S.A. (NYSE: PBR), also called Petrobras, has been a disaster. After having one of the largest equity offerings ever, the outlook for this oil giant has gone from positive to negative. The ADR now trades at $12.50 versus a 52-week range of $12.03 to $20.19. Petrobras has many investors who are buried in this stock up in the $30s and the stock was up at $50 as recently as 2009. The company is beholden to its workforce ahead of investors and the government gets to dictate its pricing at unfavorable terms for it so that Brazilians can afford energy. It has massive reserves and opportunity, but the current regime is no good for Petrobras shareholders.

Hot Safest Companies To Watch In Right Now: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

Senate Panel Okays 33% SEC Budget Hike, Setting Up House Tussle

The Senate Appropriations Committee approved Thursday a $1.674 billion budget for the Securities and Exchange Commission in fiscal 2014, fulfilling the 33% increase that was requested by the Obama Administration, and awarding the agency with $353 million above the level enacted in fiscal year 2013.

However, the Senate budget differs significantly from the GOP-controlled House proposal that would provide the SEC with $1.4 billion, only $50 million above the Commission's 2013 budget.

SEC Chairwoman Mary Jo White has been pressing for more funding so that she can add more examiners for RIAs. She told the House appropriations committee in early May that the agency’s $1.67 billion budget request for fiscal 2014 would help it fulfill one of its top priorities: to add 250 examiners for advisors.

Observers believe finding a compromise will be difficult, however, and is unlikely to occur before the current fiscal year ends Sept. 30.

The Senate Appropriations Committee also awarded the Commodity Futures Trading Commission with $315 million in 2014, $110 million above the fiscal year 2013 enacted level of $205 million. The IRS was given $12.07 billion in 2014, an increase of $276.5 million above the fiscal year 2013 enacted level.

Top 5 Casino Stocks For 2014

Sen. Tom Udall, D-Colo., chairman of the Appropriations Subcommittee on Financial Services and General Government, said it was “critical” for the SEC and CFTC to receive the added funding as “the responsibilities of these agencies are growing geometrically.”

The 250 RIA examiners, White said, would increase the proportion of advisors examined each year, the rate of first-time examinations and the examination coverage of investment advisors and newly registered private fund advisors.

Shares of Nu Skin Halted Four Times Today -- What Happened?

Shares of Nu Skin (NYSE: NUS) were halted for the fourth time mid-Thursday afternoon after plunging more than 30 percent; yesterday, shares fell 16 percent.

So what exactly happened?

On Wednesday, The People's Daily, a Chinese newspaper which is "organ of the Central Committee of the Communist Party of China" published a report that criticized Nu Skin for false marketing, selling products that are not government approved, utilizing sales tactics that are borderline "brainwashing" and operating a pyramid scheme.

China has an interesting history when it comes to direct sales.

The Communist Party in 1998 banned direct selling outright "because they feared the gatherings might be a cover for religious or other rallies," according to Bloomberg. Beijing described direct sales companies as being the source of "evil cults, secret societies and superstitious and lawless activities." The ban on direct selling was lifted in 2005.

Related: Best Buy Shares Plunge On Disappointing Holiday Sales Data

Approximately 30 percent of Nu Skin's revenue comes from China causing investors to enter a full-fledged "panic mode" and beginning to assume a worst-case scenario that the Chinese government could ban direct selling companies again.

Nu Skin originally said that the article was full of inaccuracies and exaggerations and that none of the reported claims in the article have been verified.

the Chinese government, not satisfied with the company's response, announced on Thursday morning that it will investigate Nu Skin.

"If the situation proves to be true, the commerce department will deal with it according to the law and regulations," the State Administration for Industry and Commerce in China said in a press release.

Around 1:30 P.M. EST on Thursday the company issued a statement addressing the allegations and acknowledging a Chinese investigation has been initiated.

"We have initiated our own province-by-province business review and will invite relevant regulators to provide guidance," according to the company statement. "There will likely be a negative impact on China revenue."

So now what?

Shares of Nu Skin traded as low as $67.52 on Thursday afternoon after the company released its statement. Shares rebounded slightly, recovering $10, but are down more than 30 percent for the day.

Shares of Herbalife (NYSE: HLF) are also underselling pressure, even though the company is in no way connected to Nu Skin's developing story. In the third quarter of 2013, Herbalife's sales in China grew by 77 percent and make up around 11 percent of its overall sales.

10 Best Value Stocks To Own For 2014

Posted-In: Herbalife nu skin Nu Skin China Nu Skin Pyramid SchemeNews Markets

(c) 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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3 Things You Need To Know About Preferred Stock ETFs

Preferred stocks are just one popular market segment accessible through ETFs. Almost every corner of the global financial landscape can be traded via ETF, and with U.S. interest rates at all time lows, preferred shares and the ETFs associated with them are attracting additional investor attention .

What's the Appeal?A preferred share is like a hybrid between a common stock and a bond. When you buy preferred shares, you own a piece of the company and in exchange receive fixed dividend payments, which are set at issuance, along with the par value of the preferred stock.

The main benefits of owning preferred shares are:

Tax-efficient yield: unlike a bond, the payments you receive are dividends and therefore taxed at a preferential rate to interest income.Predetermined dividend rate: With a preferred share you know what the dividend is. Unlike a common share where the dividend rate can be changed at any time, with a preferred share all provisions are laid out at issuance so you know your expected return. It is important to note though that there are different types of preferred shares. "Rate Reset" preferreds pay a fixed dividend up to the reset date, at which point the company can implement a new rate that will remain in effect until the next reset day .Diversification: Preferred shares typically have a low correlation with bonds and common stocks since they are hybrid of the two.Higher Capital Structure Rank: In the event the company goes insolvent, preferred shareholders rank higher than common shareholders in their right to liquidation proceeds. Preferred shareholders are also paid out their dividends before common equity holders receive theirs. This provides more security than common shares.Lower Volatility: Preferred shares typically trade around the par value, making them less volatile than common stock, but more volatile than bonds. Preferreds represent the middle ground between bonds and common stock.The main drawbacks are that capital appreciation is likely to be lower th! an what is available in the common equity market, and preferred shareholders don't receive voting rights.

ETFs offer a way to own a basket of preferred shares, which provides more diversification than just owning a single stock, and is more efficient than buying multiple stocks. The iShares S&P 500 US Preferred Stock Index Fund (PFF) and the PowerShares Preferred Portfolio (PGX) are two of the largest and most popular ETFs in the space.

Interest Rates MatterLike a bond, interest rates have an inverse effect on the price of preferred shares. When interest rates rise, this puts downward pressure on the price. When interest rates fall, this puts upward pressure on the price of preferred shares.  This is because the dividend payment is fixed, so if interest rates rise, the price will fall so that the new yield on the security is market competitive. Similarly, when interest rates fall, the price will rise to reduce the yield and once again make it market competitive .

As Mariela Jobson–Vice President and portfolio manager at iShares–points out though, preferred shares are a hybrid; therefore you can't expect the same direct price-to-interest rate relationship that's seen in the bond market. Like common stock, a rosy outlook and rising interest rates due to a strong economy may also help bolster preferred shares, somewhat offsetting the negative price effect of rising interest rates.

The current Federal Reserve policy has been to keep rates low. The current target rate midway through 2013 is 0 to 0.25%, and has been since late 2008. The low yield offered in money market instruments has increased the popularity of higher yielding preferred shares. Preferred shares are likely to continue to hold prominence in a low interest rate environment, but will decline if interest rates are forced up. Unlike bonds though, preferred share ETFs are a hybrid, and therefore will likely be less negatively affected by rising interest rates.

Not All Preferred Stock ETFs Offer Hig! h YieldsO! ne of the key benefits of preferred shares are that they typically offer attractive yields, but not all ETFS actually deliver on that.

For the 10 ETFs in the ETFdb Preferred Stock category, the range in yield varies from 6.02% down to 0.71% as of July 2, 2013. When putting investment dollars to work, picking the right preferred shares ETF matters.

Below, we highlight the top performing funds in the category according to dividend yield (as of July 10, 2013)  .

Ticker SymbolETF NameAnnual Dividend Yield (%)Expense Ratio

SPFF	Global X SuperIncome Preferred ETF	6.15%	0.58%
PGX	PowerShares Preferred Portfolio	6.09%	0.50%
PGF	PowerShares Financial Preferred Portfolio	6.01%	0.60%
PSK	SPDR Wells Fargo Preferred Stock ETF	5.00%	0.45%

Bottom LinePreferred shares are a hybrid between common stocks and bonds, offering a fixed dividend but no voting rights. An ETF allows you to buy a diversified basket of preferred shares with the convenience of one purchase. Not all preferred share ETFs are created equal, though, and annual dividend yields vary drastically, so choose carefully. Preferred share prices move inversely to interest rates, so if interest rates rise this will put downward pressure on the price. But since preferreds also have common stock characteristics, the negative impact of rising interest! rates is! likely to be somewhat subdued relative to the impact on bonds.

Disclosure: No positions at time of writing.

Top Financial Stocks To Buy Right Now

We have maintained our Neutral recommendation on AAR Corp. (AIR) on Jul 12, 2013 based on strong operational efficiency and enhanced product availability partially offset by stiff competition and currency fluctuations.

Why the Reiteration?

Of late, AAR Corp. has been maintaining a satisfactory competitive position given its market expertise as well as technical and financial capabilities across segments. Backed by operating strength and robust market demand, the company expects higher sales volume as well as earnings for the year.

Meanwhile, the company is well positioned to benefit from Defense and Airlift contracts. Such a position has over time strengthened with contracts obtained for providing value-added solutions for the U.S. Army, Navy and other foreign governments.

An improved commercial air transport market worldwide also helps in boosting domestic and international demand for the company�� products, especially for maintenance and spare parts.

Top Financial Stocks To Buy Right Now: Jardine Lloyd(JLT.L)

Jardine Lloyd Thompson Group plc provides risk management advisory, insurance and reinsurance broking, underwriting, and employee benefit services worldwide. Its Risk and Insurance group provides accident and health, affinity partnerships, captives, caravan park owners, cargo, casualty, claims consultancy, clinical trials, construction insurance facilities, corporate recovery, credit and political risk, cyber and IT risk, directors and officers liability, environmental impairment liability, financiers insurance due diligence, football agents, insurance management, healthcare, kidnap and ransom, marine, performance bond enhancement, PPP/PFI, professional indemnity, property, reinsurance, residual value, risk consultancy, SME/commercial, specie and fine art, tenant risks, terrorism, transactional liabilities, and wholesale insurance services. The company?s Employee Benefits group offers advisory services, including pensions consulting, actuarial consulting, flexible benefit s, benefit communications, employee healthcare and protection, pension capital strategies, retirement, wealth management, pension, and discontinuance; and outsourcing services comprising pensions administration, administration consulting, and financial institutions services. This group also provides pensions administration software and complementary services; and various products, such as Classic, P3, and oPen administration systems, as well as the Aviary accounting system, Web-based solutions, workflow, and electronic document management systems for third-party administrators. Jardine Lloyd Thompson also markets its products on a non-advisory basis to affinities, SME, and retail markets, as well as to third party brokers primarily through open-market placements, delegated authorities, and managed general underwriting arrangements. The company is headquartered in London, the United Kingdom.

Top Financial Stocks To Buy Right Now: Legg Mason Inc (LM)

Legg Mason, Inc. (Legg Mason), incorporated in 1981, is a global asset management company. The Company, through its subsidiaries, provides investment management and related services to institutional and individual clients, company-sponsored mutual funds and other pooled investment vehicles. It offers these products and services directly and through various financial intermediaries. The Company provides its asset management services through a number of asset managers, each of which generally markets its products and services under its own brand name and, in many cases, distributes retail products and services through a centralized retail distribution network. Its investment advisory services include discretionary and non-discretionary management of separate investment accounts in a number of investment styles for institutional and individual investors. Legg Mason�� investment products include mutual funds ranging from money market and other liquidity products to fixed income and equity funds managed in a variety of investment styles, other domestic and offshore funds offered to both retail and institutional investors and funds-of-hedge funds. As of March 31, 2012, assets under management were $643.3 billion. During the fiscal year ended March 31, 2012 (fiscal 2012), the Company sold Bartlett & Co., a Cincinnati-based wealth manager.

Asset Managers

The Company conducts its business primarily through 12 asset managers. Its asset managers are individual businesses, each of which generally focuses on a portion of the asset management industry in terms of the types of assets managed (primarily equity or fixed income), the types of products and services offered, the investment styles utilized, the distribution channels used, and the types and geographic locations of its clients. The Company�� asset managers provide a range of separate account investment management services to institutional clients, including pension and other retirement plans, corporations, insurance companies, ! endowments and foundations and governments, and to high-net-worth individuals and families. In addition, its asset managers also sponsor and manage various groups of the United States mutual funds, including the Legg Mason Funds, The Royce Funds and the Western Asset Funds, funds-of-hedge funds and a number of equity, fixed income, liquidity and balanced funds that are domiciled and distributed in countries worldwide, and provide investment advisory services to a number of retail separately managed account programs. Western Asset Management Company is a global fixed income asset manager for institutional clients. Western Asset's operations include investment operations in New York City, the United Kingdom, Japan, Brazil, Australia and Singapore. Western Asset offers a range of products spanning the yield curve and encompassing the bond markets, including a suite of limited duration and core products, emerging market and high yield portfolios, municipal portfolios and a variety of sector-oriented and global products. Among the services Western Asset provides are management of separate accounts and management of mutual funds, closed-end funds, international funds and other structured investment products.

ClearBridge Advisors is an equity asset management firm. ClearBridge Advisors provides asset management services to 29 of the equity funds (including balanced funds and closed-end funds) in the Legg Mason Funds, to retail separately managed account programs, to certain of its international funds and, primarily through separate accounts, to institutional clients. ClearBridge also sub-advises domestic mutual funds that are sponsored by third parties. Royce & Associates is investment advisor to all of The Royce Funds and to certain of the Company�� international funds. In addition, Royce & Associates manages other pooled and separate accounts, primarily institutional. Brandywine Global Investment Management manages fixed income, including global and international fixed income, and equity portf! olios for! institutional and, through wrap accounts, high-net-worth individual clients.

Batterymarch Financial Management manages the United States, international and emerging markets equity portfolios for institutional clients. Permal Group Ltd. is a global funds-of-hedge funds management firm. With a headquarters in London and other offices in New York City, Boston, Dubai, Paris, Tokyo, Hong Kong, Singapore and Nassau, Permal manages products, which include both directional and absolute return strategies, and are available through multi-manager and single manager funds, separately managed accounts and structured products sponsored by a number of financial institutions. Legg Mason Capital Management is an equity asset management business that manages both institutional separate accounts and mutual funds. Legg Mason Capital Management manages 12 Legg Mason Funds, and also sub-advises the mutual fund managed by the joint venture described below and investment products sponsored by its other subsidiaries, including certain of the Company�� international funds.

Legg Mason Investment Counsel & Trust Company, National Association is a national banking association with authority to exercise trust powers. Legg Mason Investment Counsel & Trust Company provides services as a trustee for trusts established by its individual and employee benefit plan clients and manages fixed income and equity assets. Legg Mason Investment Counsel, LLC, a subsidiary of Legg Mason Investment Counsel & Trust, manages equity, fixed income and balanced portfolios for high-net-worth individual and institutional clients and a number of its mutual funds. Legg Mason Investment Counsel operates out of offices in New York City, Cincinnati, Philadelphia, Easton, Maryland, and Bryn Mawr, Pennsylvania. Esemplia Emerging Markets is an emerging markets equities investment manager. Esemplia offers a range of portfolio management strategies, including core long-only and alpha-extension portfolios, to institutional investors worl! dwide, in! cluding pension funds and sovereign wealth funds.

Private Capital Management manages equity assets for high-net-worth individuals and families, institutions, endowments and foundations in separate accounts and through limited partnerships. Legg Mason's business in Poland engages in portfolio management, servicing and distribution of both separate account management services and local funds in Poland. The firm provides portfolio management services primarily for equity assets to institutions, including corporate pension plans and insurance companies, and, through funds distributed through banks and insurance companies, individual investors. Legg Mason Australian Equities is an Australian asset management business that offers Australian equity products, Australian property trusts and asset allocation products. As of March 31, 2012, Legg Mason Australian Equities managed assets with a value of $1billion.

United States Mutual Funds

The Company�� United States mutual funds business primarily consists of three groups of mutual and closed-end funds, the Legg Mason Funds, The Royce Funds and the Western Asset Funds. The Legg Mason Funds invest in a range of domestic and international equity and fixed income securities. The Royce Funds invest primarily in smaller-cap company stocks using a value investment approach. The Western Asset Funds invest primarily in fixed income securities. The Legg Mason Funds consist of 113 mutual funds and 27 closed-end funds in the United States, almost all of which are sub-advised by its subsidiary asset managers. The mutual funds and closed-end funds within the Legg Mason Funds include 63 equity funds (including balanced funds) that invest in a spectrum of equity securities. The fixed income and liquidity mutual funds and closed-end funds within the Legg Mason Funds include 77 funds. As of March 31, 2012 , the Legg Mason Funds included $114.7 billion in assets, respectively, in their mutual funds and closed-end funds, of which approximate! ly 30% an! d 27%, respectively, were equity assets, approximately 24% and 18%, respectively, were fixed income assets and approximately 46% and 55%, respectively, were liquidity assets.

The Royce Funds consist of 32 mutual funds and three closed-end funds, most of which invest primarily in smaller-cap company stocks. The Royce Funds are distributed through non-affiliated fund supermarkets, its centralized funds distribution operations, non-affiliated wrap programs, and direct distribution. In addition, two of the portfolios in The Royce Funds are distributed only through insurance companies. The Company�� mutual funds business also includes the Western Asset Funds, a family of nine mutual funds and two closed-end funds. The mutual funds are marketed primarily to institutional investors and retirement plans through the Company�� institutional funds marketing group. Western Asset Management Company manages these funds. The funds primarily invest in fixed income securities.

International Funds

The Company, outside the United States, manages, supports and distributes a number of funds across an array of global fixed income, liquidity and equity investment strategies. Its international funds include a range of cross border funds that are domiciled in Ireland and Luxembourg and are sold in a number of countries across Asia, Europe and Latin America. The Company�� international funds also include local fund ranges that are available for distribution in the United Kingdom, Australia, Japan, Singapore, Poland, Hong Kong and Canada. All of its international funds are distributed and serviced by Legg Mason's global distribution group. Its international funds include equity, fixed income, liquidity and balanced funds that are primarily managed or sub-advised by Batterymarch Financial Management, Brandywine Global, ClearBridge, Esemplia, Legg Mason Capital Management, Private Capital Management, Royce & Associates, Western Asset Management and its global asset allocation team. In a! ggregate,! the Company sponsors and manages more than 220 of these international funds.

Retail Separately Managed Account Programs

The Company is a provider of asset management services to retail separately managed account programs, commonly known as managed account or wrap programs. These programs typically allow securities brokers or other financial intermediaries to offer their clients the opportunity to choose from a number of asset management services. It provides investment management services to a number of retail separately managed account programs sponsored by a number of financial institutions.

Distribution

The Company�� centralized global distribution group distributes and supports its United States and international funds and retail separately managed account program business. The United States-based operations of the Company�� global distribution group support and distribute the Legg Mason Funds, The Royce Funds and the Western Asset Funds, and include its mutual fund wholesalers and its institutional funds marketing group. The Company�� mutual fund wholesalers distribute the Legg Mason Funds through a number of third-party distributors. The Company�� institutional funds marketing group distributes institutional share classes of the Legg Mason Funds and the Western Asset Funds to institutional clients and also distributes variable annuity sub-advisory services provided by its asset managers to insurance companies. Its institutional liquidity funds are primarily distributed by Western Asset's distributors. In addition to its centralized funds distribution group, Royce & Associates' distributors also distribute The Royce Funds. In addition to distributing funds, the wholesalers in the Company�� global distribution operations also support its retail separately managed account program services. These services are provided through programs sponsored by Morgan Stanley Smith Barney's retail business, as well as other financial institutions.

! The international distributors within the Company�� global distribution group offer its investment management services to individual and institutional investors across Asia, Europe and the Americas. These distributors operate out of distribution offices in 18 cities in 14 countries and are the sole distributors of its cross border funds globally and its international local funds in their respective countries. Legg Mason Investments is responsible for the distribution and servicing of cross border and local fund ranges across Europe, the Americas and Asia. Legg Mason Investments has offices in locations including London, Paris, Milan, Geneva, Frankfurt, Madrid, Singapore, Hong Kong, Taipei, Miami, Santiago and New York. In addition to Legg Mason Investments, the Company�� global distribution group includes separate distribution operations in Australia, Canada and Japan. In Australia, its distribution operations distribute local and cross border pooled investment vehicles sub-advised by the Company�� asset managers primarily to retail investors, pension plans, fund-of-funds managers, insurance companies and government funds/agencies. In Canada, its distribution operations distribute Legg Mason-managed products primarily to pension plans, endowments, foundations, banks and mutual fund companies and separately managed account programs. In Japan, the Company�� distribution operations distribute domestic investment funds, cross border funds and institutional separate accounts primarily to the retail market, which includes retail banks, private banks, asset managers, funds platforms and insurance companies.

Advisors' Opinion:

• [By Shauna O'Brien]

  On Wednesday, asset management firm Legg Mason Inc (LM) reported that its assets under management declined 1.8% in August due to unfavorable markets and outflows.

  Total preliminary assets under management fell to $645 billion in August, down from July due to unfavorable markets and outlooks in both equity and fixed income. August equity assets under management reflect a $1.3 billion disposition of a non-core affiliate.

  Legg Mason shares were mostly flat during pre-market trading Wednesday. The stock is up 36% YTD.

• [By Seth Jayson]

  Legg Mason (NYSE: LM  ) reported earnings on April 30. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q4), Legg Mason beat expectations on revenues and beat expectations on earnings per share.

Best Dividend Stocks To Watch Right Now: First South Bancorp Inc(FSBK)

First South Bancorp, Inc. operates as the bank holding company for First South Bank that provides commercial banking services in North Carolina. Its deposit products include checking accounts, money market accounts, statement savings accounts, individual retirement accounts, and certificates of deposit. The company?s loan products portfolio comprises residential mortgage loans, including single-family residential, multi-family residential, and construction loans; commercial loans and leases for commercial real estate, commercial construction, and commercial business; consumer loans comprising automobile loans, savings account loans, certificate of deposit loans, home equity loans, and miscellaneous other consumer loans; and loans secured by first mortgages on owner-occupied single-family residences. In addition, First South Bancorp provides securities brokerage services. The company was founded in 1959 and is headquartered in Washington, North Carolina.

Top Financial Stocks To Buy Right Now: Urstadt Biddle Properties Inc. (UBA)

Urstadt Biddle Properties, Inc., a real estate investment trust (REIT), engages in the acquisition, ownership, and management of commercial real estate properties in the United States. Its properties primarily consist of neighborhood and community shopping centers, office buildings, and industrial properties in Fairfield County, Connecticut; Westchester and Putnam Counties, New York; and Bergen County, New Jersey. As of October 31, 2007, the company owned or had an equity interest in 39 properties containing approximately 3.7 million square feet of gross leasable area. As a REIT, it is not subject to federal income tax to the extent that it distributes at least 90% of its REIT taxable income to its stockholders. The company was founded in 1969 and is headquartered in Fairfield County, Connecticut.

Advisors' Opinion:

• [By Rich Smith]

  Urstadt Biddle Properties (NYSE: UBP  ) (NYSE: UBA  ) -- the real estate investment trust with two tickers -- now has two separate executives at the top of its corporate structure, as well.

Top Financial Stocks To Buy Right Now: Firstbank Corporation(FBMI)

Firstbank Corporation, through its subsidiaries, provides commercial banking products and services. It accepts checking, savings, and time deposits. The company also provides commercial, mortgage, agricultural, real estate, real estate mortgage, real estate construction, home improvement, automobile, and consumer loans. In addition, it offers trust, security brokerage, and title insurance services, as well as armored car services. The company operates 53 branch offices in central Michigan. Firstbank Corporation was founded in 1894 and is headquartered in Alma, Michigan.

Advisors' Opinion:

• [By Louis Navellier]

  A great example of these small banks with big potential is Firstbank Corp. (FBMI), a $155 million market-cap stock that operates 53 branch offices in central Michigan. Firstbank provides commercial banking products and services, including traditional deposit accounts and loans tailored to meet the needs of its business customers. FBMI also offers trust, security brokerage and title insurance services, and even armored car services. This bank stock has been rated an “A” all year, and the fundamentals just keep getting better. FBMI shares remain a “strong buy” at current prices.

Top Financial Stocks To Buy Right Now: Federal Resources Investment Group Inc (FED)

Federal Resources Investment Group Inc.( FED) is a Philippines-based holding company engaged. The Company�� primary activities were to invest in, purchase, or otherwise dispose of real and personal property of every kind and description, including shares of stock, bonds, debentures, notes, evidences of indebtedness, and other securities or obligations of any corporation or corporations, association and associations, domestic or foreign. Prior to its change in primary purpose, the Company was previously engaged in the manufacture, marketing and distribution of various adhesives and sealants, contact cement, wood glues, epoxies, coating, and other specialty products, and other chemicals for hardware, construction, do-it-yourself and other applications. The Company�� operating segments include PVC Resins and Sealants, Coatings and adhesives. The Company is still in the process of winding up its manufacturing and trading operations and selling its remaining inventories. Advisors' Opinion:

• [By Canadian Value]

  I think too many investors have failed to put those events and developments in the proper context. Rather, they have come to the conclusion that emerging markets are finished, particularly, they say, as the US Federal Reserve (Fed) is expected to turn off the money tap, depriving emerging markets of needed liquidity to protect their weakening currencies and pay their debts. For the time being, the Fed has decided to keep the tap flowing, removing one immediate investor fear. But I think there are also other reasons why investors who doubt the emerging markets��story need better context.

• [By Canadian Value]

  Nearly all emerging markets took a hit this summer amid speculation the US Federal Reserve Bank (Fed) would soon begin ��apering��its prolonged asset purchase plan, which had pumped large amounts of liquidity into the markets globally. When you hear about this ��apering��of the Fed�� $85 billion monthly bond purchases, it�� important to understand the facts. Tapering isn�� the same as tightening. The Fed-fueled liquidity already pumped in is still working through the system. Additionally, Japan and other global central banks are printing money, adding to the pot.

Top Financial Stocks To Buy Right Now: Nuveen New York Investment Quality Municipal Fund Inc. (NQN)

Nuveen New York Investment Quality Municipal Fund, Inc. is a closed-ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is managed by Nuveen Asset Management. It invests in the fixed income markets of New York. The fund invests in tax exempt municipal bonds. It employs fundamental analysis, with bottom-up stock picking approach, to create its portfolio. The fund benchmarks the performance of its portfolio against the Standard & Poor�s New York Municipal Bond Index and Standard & Poor�s Insured National Municipal Bond Index. Nuveen New York Investment Quality Municipal Fund, Inc. was formed on September 21, 1990 and is domiciled in the United States.

Top Financial Stocks To Buy Right Now: Baldwin & Lyons Inc.(BWINB)

Baldwin & Lyons, Inc., through its subsidiaries, engages in marketing and underwriting property and casualty insurance products primarily in the United States. The company provides various fleet transportation insurance products, including casualty insurance, such as motor vehicle liability, physical damage, and other liability insurance; workers compensation insurance; specialized accident (medical and indemnity) insurance products for independent contractors; fidelity and surety bonds; and inland marine products consisting of cargo insurance. It offers its fleet transportation insurance products for motor carrier industry. The company also provides various additional services comprising risk surveys and analyses, government compliance assistance, loss control, and cost studies; and research, development, and consultation in connection with new insurance programs that include development of computerized systems to assist customers in monitoring their accident data. In add ition, it offers claims handling services to clients with self-insurance programs. Further, the company?s reinsurance assumptions business accepts cessions and retrocessions from selected insurance and reinsurance companies, principally reinsuring against catastrophes. Additionally, it provides private passenger automobile liability and physical damage coverage products to individuals through a network of independent agents; commercial property and business owners liability coverage products through a managing general agent; and miscellaneous Professional Liability coverages through wholesale and retail agents. The company was founded in 1930 and is based in Indianapolis, Indiana.

Why Lumber Liquidators Shares Leaped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of hardwood flooring retailer Lumber Liquidators (NYSE: LL  ) climbed 10% today after its quarterly results and guidance topped Wall Street expectations. 

So what: The stock has soared over the past year on better-than-expected growth, and today's second-quarter results -- EPS spiked 70% on a 22% jump in revenue -- coupled with upbeat guidance for the full year only reinforces that trend. In fact, gross margin expanded 40 basis points to 41.3% while same-store sales increased 15%, giving analysts plenty of good vibes over its competitive position and ability to grow profitably.

Now what: Management now sees full-year EPS of $2.45 to $2.60 on revenue of $940 million to $963 million, up nicely from its prior view of $2.10 to $2.35 and $913 million to $942 million. "Our success in expanding gross margin allows us to reinvest across our industry-leading value proposition, and we see multi-year opportunities to expand operating margin while we continue to grow our store base," said CEO Robert Lynch. Of course, with the stock now up a whopping 160% over its 52-week lows and trading at a forward P/E of about 30, I'd wait for some of the excitement to fade before buying into those growth prospects.   

Hot Canadian Companies To Invest In 2014

To learn about two other retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

Treasury Reports Rare Surplus in June of $116.5 Billion

The Treasury Department announced a June surplus of $116.5 billion, according to a report (link opens as PDF) released today, the largest for a single month in five years. However, the country remains in deficit for the fiscal year to date.

After May's deficit clocked in at $139 billion, a one-time $66 billion rescue repayment from Fannie Mae and Freddie Mac helped boost June's numbers significantly. Still, removing the one-time payment, the country still managed to pull itself out of the red with a $50.5 billion surplus.

While overall June receipts (inflow) totaled $287 billion, total outlays came in at just $170 billion after May's $336 billion in spending.

Source: Treasury Department

Through the first nine months of the budget year, the deficit has totaled $509.8 billion, according to the Treasury. That's $394.4 billion lower than the same period the previous year. The Congressional Budget Office forecasts the annual deficit will be $670 billion when the budget year ends on Sept. 30. If correct, that would be well below last year's deficit of $1.09 trillion and the lowest since President Barack Obama took office. It would still be the fifth-largest deficit in U.S. history.

-- Material from The Associated Press was used in this report.

link

2013’s Hottest Grandma Stock

The term "grandma stock" is used to describe defensive stocks that most commonly consist of companies that produce reliable consumer staples. These companies generally fare well regardless of general economic and market conditions because their goods are always in demand. As with all companies, some fare better than others and some occasionally break the mold of tempered gains relative to the overall market. This year was a great year for both the market as a whole and for grandma stocks. Hershey Company (NYSE: HSY  ) outshined the rest as my pick for the top grandma stock of the year, followed closely by Clorox (NYSE: CLX  ) .

Top 5 Clean Energy Companies For 2014

Total return
Hershey outperformed and Clorox matched the performance of the S&P 500 this year. Through Dec. 30, Hershey yielded a total return of over 33% and Clorox yielded a total return of 29%, matching the S&P 500's total return for the year. Though both companies have low betas (Hershey has a beta of only 0.20!), they were both able to perform at levels even with and above the market.

HSY Total Return Price data by YCharts

Grandma stocks appeal to investors because of their lack of volatility which stems from their consistent offering of consumer staples. This characteristic implies longevity, and as these companies have been around for a long time they have provided investors with consistent dividends. The Hershey Company was founded in 1894, and its shares have been traded publicly since 1985. From its very beginning on the New York Stock Exchange, Hershey has provided a steadily increasing dividend, which now amounts to a yield of over 2%.

Clorox does not have quite as long of a history as Hershey does, but Clorox has nonetheless committed itself to offering investors value in the form of dividends. The Clorox Company has been around for over a century, and it has been independent of The Procter & Gamble Company (NYSE: PG  ) since 1969.  Since their separation, both companies have continued to offer dividends, with the P&G dividend increasing to its current level of 3.5% and the Clorox dividend steadily increasing over the years to its current level of over 3% annually.  While both companies performed solidly throughout 2013, P&G performed at a level mostly consistent with its beta of ~0.5, while Clorox overachieved compared to the gains one might expect from its small beta.

Continuing to grow
The potential downfall for many grandma stocks is the companies' unwillingness to adapt and, in-turn, grow as the market changes. While chocolate and bleach are products that consumers are willing to buy in any economic conditions, these products do not provide these companies with the potential to experience huge growth. Fortunately, Hershey and Clorox break the mold of more traditional grandma stocks, which led to the growth and subsequent returns that they realized in 2013.

The Hershey Company markets its 80+ brands to over 60 countries. Over the years the company has made numerous acquisitions and it has at times expanded beyond the world of chocolate into and out of cough drops and pasta. Though constantly exploring suitable acquisitions, the company's base as the largest chocolate manufacturer in North America enables high margins through efficient operations.

While Clorox is best known for its namesake bleach product, the company also manufactures food products, other cleaning products, and disparate other chemical products. What separates Clorox from other grandma stocks and gives the company promise for long-term growth at a rate beyond that suggested by its meager beta of 0.5 is its commitment to continued research and development. Clorox spends in excess of $100 million annually on new product development and product innovation, as well as R&D on enhanced process technologies to ensure that the company remains the dominant manufacturer of their staple goods.

Looking forward
Hershey Company and Clorox go beyond the expectations for traditional grandma stocks by providing returns greater than the market as a whole. Emphasis on diverse product offerings and new and existing product development combined with the sheer size and history of these companies to make for stocks that provided investors great returns in 2013. Looking forward, both of these companies stand to fare well in the following years as well.

Microsoft Expands Iowa Data Center for $678 Million

Microsoft (NASDAQ: MSFT  ) is expanding its West Des Moines Data Center in Iowa for the third time, according to a press release from the Greater Des Moines Partnership released today. The new addition will have a minimum investment of $677.6 million, and comes four years after Microsoft opened its first Des Moines data center in 2009.

Microsoft General Manager of Data Center Services Christian Belady said in a statement today:

Microsoft has enjoyed a strong working relationship with the state of Iowa and West Des Moines and we are excited about our latest expansion project. The expansion of the West Des Moines data center is a win-win, bringing both new jobs to Iowa while supporting the growing demand for Microsoft's cloud services. The new facility is designed to provide fast and reliable services to customers in the region and features our latest efficient data center thinking.

Code-named "Project Mountain" by the Iowa Economic Development Authority, the final agreement includes eligibility for up to $20 million in tax credits. "Local incentives" from West Des Moines were also approved, but financial details were not disclosed in the release.

The center will focus primarily on Microsoft's cloud services. Construction is expected to begin later this year, with the expansion completed by 2016.

It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In a new premium report on Microsoft, a Motley Fool analyst explains that while the opportunity is huge, so are the challenges. The report includes regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

The Depressing Dominance of Dollar Stores

Before getting to anything else, let's look at the following chart that compares the performance of the nation's largest deep-discount, dollar stores versus the S&P 500 (SNPINDEX: ^GSPC  ) .

If you're anything like me, two things went through your head when you saw this. First, you regret that you missed out on the investment opportunity. Since the end of 2009, shares in all three of these companies, led by Dollar Tree (NASDAQ: DLTR  ) , have simply trounced the broader market. Even the worst performer of the bunch, Family Dollar (NYSE: FDO  ) , beat it by nearly a factor of two.

At the same time, however, one can't help lamenting their success and what it means for the United States. I mean, think about it for a second. We're the largest, most economically dominant country in the world, yet the most vibrant companies within our borders are dollar stores? Not to knock their operations, because I firmly believe that there's a time and a place for everything, but have you been in one? Is this really where we want a growing proportion of our citizens to buy food and clothing for their children?

Hot Value Stocks For 2014

The growth of Dollar General (NYSE: DG  ) over the past five years provides a textbook case of this trend. Since the end of 2006, it's opened a net 2,277 new stores, increased the average size of each location, and is making 30% more per store than it was before the financial crisis. All told, its net sales over this time period have gone from $9.2 billion up to $16 billion today -- an increase of 75%. By comparison, Target (NYSE: TGT  ) , a middle-class establishment if there ever was one, has seen its top line expand by only a cumulative 24% while, more tellingly, its sales per store have actually decreased in real terms over the same five-year time span.

My point is that these stores, and thus the performance of their respective shares, are a useful and easily accessible barometer for the health of the underlying economy and particularly that of the oh-so-critical middle class. It can't be forgotten that nearly three-quarters of our gross domestic product derives from consumption. And if that consumption is being channeled into stores that advertise their wares by affixing the word "dollar" to their brand, well, you do the math.

The Motley Fool's top stock for 2013
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Don't Get Too Worked Up Over Marinemax's Earnings

Although business headlines still tout earnings numbers, many investors have moved past net earnings as a measure of a company's economic output. That's because earnings are very often less trustworthy than cash flow, since earnings are more open to manipulation based on dubious judgment calls.

Earnings' unreliability is one of the reasons Foolish investors often flip straight past the income statement to check the cash flow statement. In general, by taking a close look at the cash moving in and out of the business, you can better understand whether the last batch of earnings brought money into the company, or merely disguised a cash gusher with a pretty headline.

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 Marinemax (NYSE: HZO  ) , whose recent revenue and earnings are plotted below.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. FCF = free cash flow. FY = fiscal year. TTM = trailing 12 months.

Over the past 12 months, Marinemax burned $17.8 million cash while it booked a net loss of $0.8 million. That means it burned through all its revenue and more. That doesn't sound so great. FCF is less than net income. Ideally, we'd like to see the opposite.

All cash is not equal
Unfortunately, the cash flow statement isn't immune from nonsense, either. That's why it pays to take a close look at the components of cash flow from operations, to make sure that the cash flows are of high quality. What does that mean? To me, it means they need to be real and replicable in the upcoming quarters, rather than being offset by continual cash outflows that don't appear on the income statement (such as major capital expenditures).

For instance, cash flow based on cash net income and adjustments for non-cash income-statement expenses (like depreciation) is generally favorable. An increase in cash flow based on stiffing your suppliers (by increasing accounts payable for the short term) or shortchanging Uncle Sam on taxes will come back to bite investors later. The same goes for decreasing accounts receivable; this is good to see, but it's ordinary in recessionary times, and you can only increase collections so much. Finally, adding stock-based compensation expense back to cash flows is questionable when a company hands out a lot of equity to employees and uses cash in later periods to buy back those shares.

So how does the cash flow at Marinemax look? Take a peek at the chart below, which flags questionable cash flow sources with a red bar.

Source: S&P Capital IQ. Data is current as of last fully reported fiscal quarter. Dollar values in millions. TTM = trailing 12 months.

When I say "questionable cash flow sources," I mean items such as changes in taxes payable, tax benefits from stock options, and asset sales, among others. That's not to say that companies booking these as sources of cash flow are weak, or are engaging in any sort of wrongdoing, or that everything that comes up questionable in my graph is automatically bad news. But whenever a company is getting more than, say, 10% of its cash from operations from these dubious sources, investors ought to make sure to refer to the filings and dig in.

With 40.6% of operating cash flow coming from questionable sources, Marinemax investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost. Overall, the biggest drag on FCF came from capital expenditures.

A Foolish final thought
Most investors don't keep tabs on their companies' cash flow. I think that's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home-run stocks that provide the market's best returns.

Hot Heal Care Stocks To Invest In 2014

Selling to fickle consumers is a tough business for Marinemax or anyone else in the space. But some companies are better equipped to face the future than others. In a new report, we'll give you the rundown on three companies that are setting themselves up to dominate retail. Click here for instant access to this free report.

We can help you keep tabs on your companies with My Watchlist, our free, personalized stock tracking service.

Add Marinemax to My Watchlist.

Top Performing Companies To Own For 2014

After being a big part of the problem for gold, the U.S. Federal Reserve and its chairman, Ben Bernanke, are finally becoming a part of the solution. On Wednesday, Bernanke made clear that the growing concern in the precious metals markets that quantitative easing would begin to taper off were unfounded. Combined with positive comments from miners,�including Newmont Mining (NYSE: NEM  ) and Gold Fields (NYSE: GFI  ) , the result was a major surge for gold during Thursday's trading session. Making the move all the more interesting is the fact that the miners are outperforming the commodity, an unusual occurrence over the course of this year.

The Fed
On July 10, the Fed minutes were released showing the intense divide which still remains among the central bank's senior officials:�"Others were concerned that stating an intention to slow the pace of asset purchases, even if the intention were conditional on the economy developing about in line with the Committee's expectations, might be misinterpreted as signaling an end to the addition of policy accommodation or even be seen as the initial step toward exit from the Committee's highly accommodative policy stance."

Top Performing Companies To Own For 2014: PS Business Parks Inc.(PSB)

PS Business Parks, Inc., a real estate investment trust (REIT), together with its subsidiaries, engages in the acquisition, development, ownership, and operation of commercial properties primarily multi-tenant flex, office, and industrial space. As of December 31, 2007, the company owned and operated approximately 19.6 million rentable square feet of commercial space located in Arizona, California, Florida, Maryland, Oregon, Texas, Virginia, and Washington, as well as managed approximately 1.4 million rentable square feet. It also owned approximately 6.4 acres of land in Northern Virginia; 14.9 acres in Portland, Oregon; and 10.0 acres in Dallas, Texas for the development of commercial properties. PS Business Parks has elected to be taxed as a REIT under the Internal Revenue Code and would not be subject to federal income tax to the extent it distributes at least 90% of its REIT taxable income to its shareholders. The company was founded in 1983. It was formerly known as P ublic Storage Properties XI, Inc. and changed its name to PS Business Parks, Inc. in 1998. The company is based in Glendale, California.

Top Performing Companies To Own For 2014: Workspace Group(WKP.L)

Workspace Group PLC, a real estate investment trust (REIT), engages in property investment in the form of letting of business accommodation to small and medium sized enterprises in London and the South East of England. It offers space for serviced offices, offices, studios, workshops, and light industrial units. The company owns 100 estates, comprising approximately 5.77 million square feet, and provides accommodation for 4,000 small businesses in London and the South East. It has a joint venture with Workspace Glebe Limited, which engages in property investment. The company has elected to be treated as a REIT for federal income tax purposes and would not be subject to income tax, if it distributes at least 90 % of its REIT taxable income to its share holders. Workspace Group PLC, formerly known as London Industrial PLC, was founded in 1987 and is headquartered in London, the United Kingdom.

5 Best Gold Stocks To Invest In 2014: Eltek Ltd.(ELTK)

Eltek Ltd., together with its subsidiaries, develops, manufactures, markets, and sells printed circuit boards (PCBs), including high density interconnect multi-layered and flex-rigid boards primarily in Israel, Europe, and North America. The company offers a range of custom designed PCBs, such as complex rigid, double-sided, and multi-layer PCBs, as well as flexible circuitrym made of various types of high-performance base material. It offers its products to manufacturers of medical equipment, defense and aerospace equipment, industrial equipment, and telecom and networking equipment, as well as contract electronic manufacturers. The company markets and sells its products through direct sales personnel, sales representatives, and agreements with PCB trading and manufacturing companies. Eltek Ltd. was founded in 1970 and is based in Petach Tikva, Israel.

Top Performing Companies To Own For 2014: Reef Resources Ltd (REE.V)

Reef Resources Ltd. engages in the exploration, development, and production of oil and natural gas in Canada. It owns 23,500 acres of proprietary 3D seismic in Ontario basin. The company was incorporated in 1996 and is based in Calgary, Canada.

Top Performing Companies To Own For 2014: China Coal Corporation (CKO.V)

China Coal Corporation, a development stage company, engages in identifying, acquiring, and developing coal mines in the People�s Republic of China. The company holds interests in a coal bed methane property covering a net area of approximately 1,941 square kilometers in the eastern Dananhu Coalfield, Hami Prefecture, Xinjiang Province. It also has an agreement to acquire a 60% interest in the Mei Feng coal mine located west of Urumqi, Xinjiang. The company is headquartered in Calgary, Canada.

3 Hot Stocks to Trade (or Not)

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

>>5 Stocks Under $10 Set to Soar

From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

>>5 Big Trades for Post-Taper Gains

These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. That's especially true now that earnings season is officially underway. And when there's a big catalyst, there's often a trading opportunity.

Without further ado, here's a look at today's stocks.

Activision Blizzard

Nearest Resistance: $18

Nearest Support: $16.50

Catalyst: Technical Setup/Call of Duty Sales

>>5 Stocks With Big Insider Buying

Despite lower-than-expected sales numbers for Call of Duty: Ghosts this week, video game maker Activision Blizzard (ATVI) is enjoying some buoyancy in today's session. Shares are up close to 3% this afternoon, the result of investors' glass-half-full reaction to the Ghosts numbers, and a bullish technical setup in shares.

Right now, ATVI is forming a rectangle pattern with resistance at $18 and support down at $16.50. The consolidation setup is showing upside bias right now, which means that a move through $18 looks like the most probable outcome for shares in December. When that happens, traders have a buy signal in this video game giant.

Cobalt International Energy

Nearest Resistance: $15

Nearest Support: N/A

Catalyst: Aegean Well Results

>>5 Cash-Rich Stocks That Could Pay Triple the Gains in 2014

Cobalt International Energy (CIE) is getting sold off more than 8% this afternoon, after the firm released a statement that it was plugging and abandoning its Aegean number-one exploratory well in the Gulf of Mexico. CIE's drill didn't find commercial hydrocarbons, which means that it's back to square one for the project. After selling off more than 41% year-to-date, this latest hiccup is far from an ideal way to end the year.

A quick glimpse at CIE's chart is just about all you need to figure out its tradability right now. This resource stock is clearly broken. Resistance is in place at $15, and support is nowhere to be found at this point. If you're looking for a cheap buying opportunity in CIE, wait for shares to establish some semblance of support before you put money in this name; for now, it's a falling knife you don't want to catch.

Ariad Pharmaceuticals

Nearest Resistance: $6

Nearest Support: $4

Catalyst: Iculsig Drama

>>3 Biotech Stocks Spiking on Big Volume

Last up is Ariad Pharmaceuticals (ARIA), the small-cap pharmaceutical name that's one of the most heavily-traded names on the Nasdaq this afternoon thanks to the latest bit of drama over its Iculsig drug. ARIA is up 4.5% as I write this afternoon following news that European regulators won't be pulling the drug from the market, after the FDA suspended sales on Oct. 31.

ARIA is currently forming a textbook inverse head-and-shoulders pattern with resistance at $6. A push through the $6 level is a pretty strong buy signal for ARIA. Despite the volatility this stock has seen this year, shares could look a whole lot worse right now. If the trade does trigger, I'd recommend putting a protective stop under the 50-day moving average.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

>>4 Stocks Triggering Breakouts on Unusual Volume

>>5 Commodity Stocks to Trade for Gains

>>3 Stocks Under $10 in Breakout Territory

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

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

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

Follow Jonas on Twitter @JonasElmerraji