What's FATCA? Global Banking Meets NSA But Reports To IRS

 

 

FATCA was quietly enacted in 2010 in a big messy bill called the Hiring Incentives to Restore Employment Act of 2010 (P.L. 111-147). Who names these bills? If you are paying higher healthcare premiums today, note that Obamacare is actually called the Affordable Care Act. And has any "Tax Simplification Bill" actually done it?

FATCA outdoes them all. Three years later, it is the centerpiece of IRS and Treasury Department efforts to curb tax evasion everywhere. Now the IRS has issued a draft agreement and proposed guidance for Foreign Financial Institutions—FFIs to those on the long FATCA adviser gravy train.

Some FFIs will make direct agreements with the IRS. Some will report through a Model 2 InterGovernmental Agreement (IGA). IGAs are a kind of back door meant to preserve a semblance of sovereignty. With an IGA, a bank reports to its government on Americans.

The foreign government then reports to the IRS. The foreign bank feels better because it didn't report directly to the IRS. But report they must, and they are reporting on you. The IRS likes this, and while foreign banks and governments may not, there is little sign they will refuse.

In fact, they are not lining up to take their medicine. Withholding agents must withhold 30% of certain payments to an FFI unless the FFI has entered into an agreement with the IRS. These agreements say the FFI will:

Perform due diligence to identify accounts for U.S. persons; Verify compliance with the agreement; Report information on U.S. accounts to the IRS; Withhold on pass-thru payments (including foreign pass-thru payments) to recalcitrant account holders and nonparticipating FFIs; Comply with requests for additional information on its U.S. accounts; and Under some circumstances, close accounts of recalcitrant account holders.

What if foreign law prevents an FFI from reporting? No problem, the IRS has two different IGAs to fix this. To start, FFIs must register with the IRS. Registering financial institutions will receive a notice of registration acceptance and will be issued a global intermediary identification number.

So far, the Treasury Department has signed nine IGAs, has reached 16 agreements in substance, and is engaged in related conversations with many more jurisdictions. The IRS says the draft FFI agreement will be finalized by December 31, 2013.

The latest regulations are supposed to phase in FFI obligations over several years. For example, the regulations exempt all preexisting accounts held by individuals with $50,000 or less. For similar accounts with less than $1 million, an FFI is only required to search the account information that is electronically available.

In many cases, FFIs are permitted to rely on information that they already must collect for local anti-money laundering and know-your-customer rules. In fairness, these accommodations should make the difficult compliance job of FFIs more manageable, and the burdens FFIs face a little less overwhelming.

Withholding requirements begin in July 2014. The first report of FATCA information is due in 2015. But if you are eager, the FATCA registration website is already open so FFIs can begin testing the registration process and entering their information. It is thought to work much more smoothly than say healthcare.gov.

For the draft notice and FFI agreement, click here.

For updates and further information on the IRS FATCA page, click here.

Whether you think FATCA is a good idea or a travesty, the IRS and Treasury Department have gone to Herculean efforts to ramp it up and implement its protocols. FFIs may not like it, and may especially hate the big price tag many are paying for the new IT systems they need to implement. But the world seems to be learning to live with FATCA even if it isn't exactly embracing it with a bear hug. FATCA? It's here to stay.

You can reach me at Wood@WoodLLP.com. This discussion is not intended as legal advice, and cannot be relied upon for any purpose without the services of a qualified professional.

5 Tech Stocks Spiking on Big 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 Setting Up to Break Out

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.

>>4 Red-Flag Stocks to Sell This Fall

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

Ambarella

Ambarella (AMBA) is a developer of semiconductor processing solutions for video that enable high-definition video capture, sharing and display. This stock closed up 8.6% at $16.66 in Friday's trading session.

Friday's Volume: 5.17 million

Three-Month Average Volume: 1.11 million

Volume % Change: 423%

>>4 Tech Stocks to Trade (or Not)

From a technical perspective, AMBA gapped sharply higher here back above its 50-day moving average of $16.62 with heavy upside volume. This move briefly pushed shares of AMBA into breakout territory, since the stock took out some near-term overhead resistance at $17.42. Shares of AMBA closed below that breakout level at $16.66 with volume that was well above its three-month action of 1.11 million shares.

Traders should now look for long-biased trades in AMBA as long as it's trending above its 50-day at $16.66 or above Friday's low of $16.25 and then once it sustains a move or close above Friday's high of $17.69 with volume that's near or above 1.11 million shares. If that breakout hits soon, then AMBA will set up to re-test or possibly take out its 52-week high at $19.44.

Immersion

Immersion (IMMR) develops, manufactures, licenses and supports a range of hardware and software technologies and products that enhance digital devices with touch interaction. This stock closed up 2.7% at $13.76 in Friday's trading session.

Friday's Volume: 407,000

Three-Month Average Volume: 268,520

Volume % Change: 80%

>>5 Stocks Under $10 Set to Soar

From a technical perspective, IMMR bounced notably higher here back above its 50-day moving average at $13.76 with above-average volume. This move is quickly pushing shares of IMMR within range of triggering a near-term breakout trade. That trade will hit if IMMR manages to take out some near-term overhead resistance at $14.42 with high volume.

Traders should now look for long-biased trades in IMMR as long as it's trending above some key near-term support at $13 and then once it sustains a move or close above $14.42 with volume that's near or above 268,520 shares. If that breakout hits soon, then IMMR will set up to re-test or possibly take out its 52-week high at $16.73.

Ruckus Wireless

Ruckus Wireless (RKUS) provides carrier-class Wi-Fi solutions to service providers and enterprises to solve network capacity and coverage challenges. This stock closed up 1.7% at $15.30 in Friday's trading session.

Friday's Volume: 2.75 million

Three-Month Average Volume: 1.45 million

Volume % Change: 135%

>>5 Stocks Insiders Love Right Now

From a technical perspective, RKUS rose modestly higher here right above its 50-day moving average at $13.86 with above-average volume. This move pushed shares of RKUS into breakout territory, since the stock took out some past overhead resistance at $15.20. This breakout has now putting a massive gap into play for RKUS if this stock can see continued follow through in the near future.

Traders should now look for long-biased trades in RKUS as long as it's trending above its 50-day at $15.30 and then once it sustains a move or close above Friday's high of $15.60 with volume that's near or above 1.45 million shares. If we get that move soon, then RKUS will set up to re-fill its previous gap down zone from May that started near $19.

Rally Software Development

Rally Software Development (RALY) provides Agile software development tools and educational and support services to help companies adopt Agile and Lean software development practice. This stock closed up 4.6% at $26.80 in Friday's trading session.

Friday's Volume: 541,000

Three-Month Average Volume: 171,183

Volume % Change: 297%

>>5 Big Trades for September Bounce

From a technical perspective, RALY ripped higher here back above its 50-day moving average at $26.47 with strong upside volume. This move also pushed shares of RALY into breakout territory, since the stock took out some near-term overhead resistance at $26.42. Shares of RALY are now quickly moving within range of triggering an even bigger breakout trade. That trade will hit if RALY manages to take out some near-term overhead resistance at $27.90 with high volume.

Traders should now look for long-biased trades in RALY as long as it's trending above its 50-day at $26.47 or above Friday's low of $26, and then once it sustains a move or close above $27.90 with volume that's near or above 171,183 shares. If we get that move soon, then RALY will set up re-test or possibly take out its all-time high at $30.25. Any high-volume move above $30.25 will then give RALY a chance to tag $32 to $35.

ServiceSource International

ServiceSource International (SREV) helps hardware, software, health care, and life sciences companies derive from their customers more revenue from maintenance, support and subscription agreements. This stock closed up 1% at $12.97 in Friday's trading session.

Friday's Volume: 1.47 million

Three-Month Average Volume: 979,000

Volume % Change: 125%

>>3 Big Stocks on Traders' Radars

From a technical perspective, SREV jumped modestly higher here right above some near-term support at $12.03 with above-average volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $10.59 to its recent high of $13.27. During that move, shares of SREV have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SREV within range of triggering a major breakout trade. That trade will hit SREV manages to clear Friday's high of $13 and then once it takes out its 52-week high at $13.27 with high volume.

Traders should now look for long-biased trades in SREV as long as it's trending above Friday's low of $12.42 or above support at $12.03 and then once it sustains a move or close above those breakout levels with volume that's near or above 979,000 shares. If that breakout triggers soon, then SREV will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $16 to $18.

Top 10 Tech Companies For 2014

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:

>>3 Stocks Rising on Big Volume

>>4 Tech Stocks Under $10 Moving Higher

>>5 Big Short-Squeeze Stocks Ready to Pop

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.

These Are the World's 10 Most Pessimistic Countries

Have you ever heard the phrase that "Happiness is contagious"? The thought here is that if you surround yourself with happy people who are enjoying life, then you, too, will be brought up to their level. In fact, a study conducted in 2008 at my alma mater, the University of California, San Diego, confirmed that happiness is indeed contagious.

The catch is most people forget that emotions are a two-way street. If you surround yourself with negativity, no matter how happy you are presently, you're likely to be brought down.

You might think this is nothing more than an "office scenario" to encourage a positive attitude in the workplace, but it has plenty of real-world application with regard to how businesses view expansion into new territories and how investors may see their decision as to whether to invest within specific countries.

Source: Hobvias Sudoneighm, Flickr.

The sad results
Earlier this week, Gallup released its findings on the most optimistic and most pessimistic nation's in the world. For its poll, Gallup utilized the Cantril Self-Anchoring Striving Scale to question respondents in 150 countries about where they feel they are now compared to where they see themselves five years from now (assuming a ladder where 10 is the best and 0 is the worst). The results themselves weren't all too surprising, but they do lend credence to some intriguing investing ideas that you may not have already considered.

Without further ado, here are the 10 most pessimistic countries in the world, according to Gallup's findings: 

Country

% Pessimists

Greece	38%
Czech Republic	33%
Slovenia	32%
Hungary	29%
Haiti	26%
Taiwan	26%
Spain	25%
Cyprus	25%
Poland	25%
Singapore	24%

Source: Gallup.

Note the trends
Much of this list wasn't a surprise with Greece taking the top spot for a second year in a row as expected. Honestly, how cheery do you expect citizens to be when their country has had to take multiple bailouts and unemployment levels have spiked to a region high of 27%? But there are some notable trends worth keeping an eye on here that can give you an investing edge.

The first is that many of the world's most pessimistic countries tend to be clustered in Europe. Greece, the Czech Republic, Slovenia, Hungary, Spain, Cyprus, and Poland are six of the first nine most pessimistic countries. If misery loves company, it could be a long time before big business digs itself out of the trenches in Europe.

For investors with more of a penchant for risk who are willing to bet against individual companies, they might consider angling a short sale against a large EU banking giant such as Banco Santander (NYSE: SAN  )  or focus on a Greece-based bank like the National Bank of Greece (NYSE: NBG  ) .

The benefits of this strategy are obvious. For both Banco Santander and Greece, reduced government spending through austerity measures in Europe could greatly reduce enterprise expansion and the need for commercial loans. Similarly, less business expansion could lead to more unemployed persons and less disposable income for deposits. That's a scary scenario if you own stock in banks in the EU. It's especially scary for the National Bank of Greece, whose long-term survival could be at stake if unemployment rates don't reverse at some point soon.

But betting against individual companies also has its risks. Most companies are global in nature these days -- such as Banco Santander servicing the Brazilian, U.S., and multiple other markets -- making a pure-play bet difficult. In addition, high levels of short interest can be dangerous as well. Just look at National Bank of Greece's short-covering induced rally earlier this year.

Perhaps one of the more intriguing ways to play this pessimism is through an ETF. Betting against the Global X FTSE Greece 20 ETF (NYSEMKT: GREK  ) is one such example that might make a lot of sense. This ETF does its best to correspond to the performance of the Greek market by owning shares in the largest 20 Greek companies by market cap. With the unemployment rate at 27% and pessimism running high, it's quite possible these factors could feed off each other to make things worse before they get better.

Also note who's not on the list
A key point about the most pessimistic countries is also who's not on the list. Aside from Haiti, there isn't a country within the top 10 that's based with any proximity to the Americas. And to be honest, with no disrespect intended, Haiti's economy isn't vital to the success of any of the largest North, Central, and South American economies.

What I'm getting at here is that while optimism in the U.S. may not be off the scale based on our recent economic data, the rallies we've seen in the Dow Jones Industrial Average (DJINDICES: ^DJI  ) and the S&P 500 (SNPINDEX: ^GSPC  ) may prove self-sustaining based on the happiness they're generating with investors.

Don't get me wrong. Most U.S. data has been encouraging. U.S. unemployment levels are near five-year lows, most homebuilding indexes are at their highest levels since 2006 or 2007, and the ongoing free money from the Federal Reserve known as QE3 is keeping lending rates near historic lows. However, justifying a more than 9,000-point surge in the Dow over the past four years and change, and a new all-time record high for the S&P 500, is difficult with a U.S. GDP growth rate that's struggling to maintain the 2% level.

I wouldn't go so far as to say investor happiness is the only reason we're heading higher, but it's certainly a justifiably significant piece of the puzzle considering that the economic data isn't overwhelmingly suggestive of U.S. markets hitting new highs. If investors remain happy, we could continue to see new all-time highs in both the Dow and S&P 500.

Turn that frown upside down
As Gallup has clearly shown, there are regions of the world that clearly don't view their future with much optimism. But that doesn't mean you can't turn that frown upside down and find your own happy place. Consider using this data to your advantage and look for opportunities in your own portfolio where you might be able to utilize consumer's sentiment and opinion to your benefit.

If you're looking for a happier ending, stay tuned as I plan on highlighting the most optimistic countries as well tomorrow.

Another sad fact is that millions of Americans have waited on the sidelines since the market meltdown in 2008 and 2009, too scared to invest and put their money at further risk. Yet those who've stayed out of the market have missed out on huge gains and put their financial futures in jeopardy. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.

Everybody Hates Rayonier: Shares Fall 15% on Earnings Miss, Multiple Downgrades

Timber! Shares of Rayonier (RYN) are tumbling like a felled tree after the timber real-estate investment trust missed earnings forecasts this morning, leading to downgrades from at least three investment banks.

Jim Carlton

Rayonier reported a profit of 44 cents, below forecasts for a 46 cent profit, while revenue came in at $384.8 million, well below estimates for $422 million.

Deutsche Bank’s Mark Wilde and team cut Rayonier from Hold to Sell. They explain why:

While recent commentary around RYN's timberland and real estate operations has been quite encouraging, outlook for its Cellulose Specialties business (accounts for 72% of segment EBIT) suggests significant downside risks ahead. RYN said recent contract negotiations suggest a drop in 2014 cellulose specialties (CS) prices and slower transition to CS. Beyond lower cashflows, a sharp price drop could dampen bullish "specialty chemicals" valuations that have been floated for the segment. Pick-up in timber & real estate markets may mitigate some downside pressure on stock, but they won't eliminate it.

Raymond James analyst Collin Mings and slashed their rating on Rayonier to Market Perform from Strong Buy:

We are lowering our rating on Rayonier to Market Perform from Strong Buy as we expect concerns over a slower-than-expected ramp in incremental specialty-grade dissolving pulp sales volumes and 2014 specialty-grade dissolving pulp price negotiations will prove to be a near-term headwind for RYN shares. Longer-term, we continue to believe its cellulose specialties expansion (CSE) project sets the foundation for significant cash flow (and dividend) growth. We remain attracted to the multi-year growth prospects of this business and the barriers-to-entry competitors face to gaining meaningful market share over a sustained period. However, commentary on yesterday's conference call made it clear that the timeline for Rayonier to realize the full benefits of this expansion project has been extended (potentially into 2017/2018 versus 2016/2017). As such, we believe it is prudent to step to the sidelines as we expect this will place a near-term overhang on RYN shares.

Bank of America Merrill Lynch also got into the act by downgrading Rayonier’s shares to Neutral from Buy.

Shares of Rayonier have plunged 15% to $46.97 at 12.36 p.m., but its fall doesn’t seem to have damaged other timber companies. Weyerhaeuser (WY) has gained 3.7% to $31.43 after it reported a profit of 27 cents today, beating estimates of 21 cents. Plum Creek Timber (PCL) is little changed at $49.47 and Boise Cascade (BCC) has risen 1.1% to $27.83.

Yelp Inc (YELP) Q3 Earnings Preview: Shorts Beware

Yelp, Inc. (YELP) will issue its financial results for the third quarter ended September 30, 2013 after the market close on Tuesday, October 29, 2013.  Yelp will host a conference call to discuss the results at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on the same day.

Wall Street anticipates that internet services provider will lose a penny for the quarter. iStock expects YELP to hit Wall Street's consensus number. The iEstimate is a loss of a penny, too.

Yelp, Inc. operates Yelp.com, an online urban city guide that helps people find places to eat, shop, drink, relax, and play based on the informed opinions of a community of locals in the know.

Since Yelp business is online and advertising dependent, investors can get an idea of what to expect by looking at traffic and search volume trends. According to Alexa.com, Yelp's page views were up 9.5% versus the previous three months. Quantcast.com shows the online service's number of unique visitors rising in July and August, but flattening out in September.

When we flip over to Google trends, we find that search volume intensity for "Yelp" is up 3.44% in the third quarter relative to Q2, and 8.5% compared to Q2 2012.

Based on the trio of online resources, iStock expects to see Yelp's unique visitor number to log in at a minimum of 112 million. More visitors with more page views equal more ads served, which usually means more advertising dollars.

Based on our calculations, those dollars should add up to revenue close to $59.98 million for the three months ended September 30, 2013. Our estimate is a little higher than the consensus revenue target of $59.41 million.

If the relationship between sales growth and cost increases remains somewhat constant quarter-over-quarter (QoQ), then our excel sheet says total costs and expenses should be in the neighborhood of $58.54 million, which mean an operating profit of $0.013 before other income/expenses.

Should YELP deliver a profit, not matter how small wh! en a loss is expected, we wouldn't be too shocked to see the stock rock. In its limited public life, Yelp has produced two bullish surprises in its half-dozen quarterly checkups. The pair of beats propelled bulls big-time as the stock gained 28.30% and 30.3% in the three days bookending the better than expected EPS announcements.

Top 5 Tech Stocks To Own Right Now

With 26.10% of the float (stock available for trading) sold-short, a surprise trip into the black could make short-sellers yelp, ENOUGH! and write up a bunch of buy tickets to cover.

Overall: Web traffic and Google trends hint at a little better than expected quarter for Yelp, Inc.'s (YELP) top and bottom lines. Shorts beware if we've made the correct call.

Hot Gold Companies To Invest In Right Now

Futures Higher on Economic Data

U.S. equity futures are significantly up in early pre-market trade based on strong Asian and European PMI data. In addition, the Bank of England and European Central Bank are expected to reaffirm a policy of easing Thursday morning.

Top News

Eurozone manufacturing is growing for the first time in two years. PMI came in at 50.3 versus the previous 48.8. China's HSBC manufacturing PMI is down from 48.2 to 47.7. However, the NBS manufacturing PMI rose from 50.1 to 50.3, beating expectations. S&P futures are up 13.3 points to 1693.8 The EUR/USD is down 0.0067 to 1.3235 Crude Oil futures are up $1.22 to $106.25. Gold futures are up $10.10 this morning to $1323.10. Asian Markets

Asian markets surged overnight on strong economic data. The Japanese Nikkei 225 Index gained 2.47 percent and the Topix Index rose 2.80 percent. In Hong Kong, the Hang Seng Index added 0.94 percent while the Shanghai Composite Index rose 1.77 percent in China. Also, the Korean Kospi added 0.35 percent.

Hot Gold Companies To Invest In Right Now: Goldcorp Incorporated(GG)

Goldcorp Inc. engages in the acquisition, exploration, development, and operation of precious metal properties in Canada, the United States, Mexico, and Central and South America. It produces and sells gold, silver, copper, lead, and zinc. The company was founded in 1954 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Doug Ehrman]

  As gold prices tumbled during Friday's trading session, precious metals companies were dragged down too, including Goldcorp (NYSE: GG  ) and the gold ETF, the SPDR Gold Trust (NYSEMKT: GLD  ) . Given its recent increase in exposure to gold, Silver Wheaton's (NYSE: SLW  ) inability to escape the slide is not a big surprise. Despite increased signs of global economic instability, gold fell below $1500 for the first time since July 2011.

• [By Doug Ehrman]

  In the video below, Fool.com contributor Doug Ehrman discusses recent activity by the Chinese central bank and how to craft an investment strategy around its moves. Companies like Alcoa (NYSE: AA  ) and Freeport-McMoRan (NYSE: FCX  ) could be negatively affected, but gold and the SPDR Gold Trust (NYSEMKT: GLD  ) , as well as gold miners ��including Barrick (NYSE: ABX  ) and Goldcorp (NYSE: GG  ) could benefit. Crafting an investment strategy on the news will require careful attention to what comes next for monetary policy in China.

• [By Dan Caplinger]

  One way Yamana has kept its competitive cost advantage is through extensive sales of base-metal byproducts like copper and zinc, as both it and fellow low-cost rival Goldcorp (NYSE: GG  ) benefit from utilizing those secondary metals to offset the cost of their gold production. Peers Gold Fields (NYSE: GFI  ) and AngloGold Ashanti (NYSE: AU  ) , on the other hand, face much higher costs in part because of their exposure to South Africa and its unstable labor market.

Hot Gold Companies To Invest In Right Now: Newmont Mining Corporation(Holding Company)

Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company?s assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. As of December 31, 2009, it had proven and probable gold reserves of approximately 93.5 million equity ounces and an aggregate land position of approximately 27,500 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

Top 5 Warren Buffett Stocks To Own Right Now: Iamgold Corporation(IAG)

IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Dan Caplinger]

  Elsewhere, losers were few and far between, but many gold stocks remained under pressure as the yellow metal only managed a modest bounce after yesterday's plunge. In particular, major producer Barrick Gold (NYSE: ABX  ) and gold miner IAMGOLD (NYSE: IAG  ) fell between 4% and 5%. Both companies were on the list of holdings of billionaire hedge fund investor John Paulson's gold fund as of Dec. 31, and with rumors circulating that Paulson may have to liquidate positions to handle coming redemption requests, the stocks that he reportedly owns could see further selling pressure even if gold bullion prices rise.

• [By Tom Stoukas]

  Air France led airlines lower, falling 4 percent to 7.30 euros. International Consolidated Airlines Group SA (IAG) lost 1.9 percent to 270.7 pence while Deutsche Lufthansa AG slid 2.1 percent to 15.75 euros.

• [By Ben Levisohn]

  As a result, Chidley and team upgraded Agnico Eagle Mines (AEM) and�Yamana Gold (AUY) to Neutral from Underweight, and raised Barrick Gold (ABX), Goldcorp (GG) and Iamgold (IAG) to Overweight from Neutral.�Gold Fields (GFI) was downgraded “due to increased risk and also reduced expectations for the South Deep operation,” Chidley says.

Hot Gold Companies To Invest 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.

Hot Gold Companies To Invest In Right Now: Golden Star Resources Ltd(GSS)

Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.

Advisors' Opinion:

• [By Sean Williams]

  Golden Star Resources (NYSEMKT: GSS  )
  It's simple physics: The bigger they are, the harder they fall. When gold prices nosedived earlier this week, gold miners with historically higher operating costs took the brunt of the hit. For the most part, that meant that development-stage miners, and those operating in Africa, where labor and political costs make cost-effective mining a challenge, took it on the chin. Possibly no stock was hammered more than Golden Star Resources, a gold miner in Ghana, which lost about one-quarter of its value on Monday alone.

• [By Rich Duprey]

  Clash of the titans
  When bears are raging on the gold bullion market, it's not surprising to see gold stocks getting mauled as well. Golden Star Resources (NYSEMKT: GSS  ) was the biggest loser in the sector, losing a quarter of its market cap on no company-specific news, though a report last Friday indicated that a large number of hedge funds had recently dumped their positions in the mid-tier miner. Yet it wasn't all that much better among the majors, either, as Barrick Gold (NYSE: ABX  ) fell almost 13% and Kinross Gold (NYSE: KGC  ) was down 14%.

Hot Gold Companies To Invest In Right Now: CME Group Inc.(CME)

CME Group Inc. operates the CME, CBOT, NYMEX, and COMEX regulatory exchanges worldwide. The company provides a range of products available across various asset classes, including futures and options on interest rates, equity indexes, energy, agricultural commodities, metals, foreign exchange, weather, and real estate. It offers various products that provide a means of hedging, speculation, and asset allocation relating to the risks associated with interest rate sensitive instruments, equity ownership, changes in the value of foreign currency, credit risk, and changes in the prices of commodities. CME Group owns and operates clearing house, CME Clearing, which provides clearing and settlement services for exchange-traded contracts and counter derivatives transactions; and also engages in real estate operations. Its primary trade execution facilities consist of its CME Globex electronic trading platform and open outcry trading floors, as well as privately negotiated transact ions that are cleared and settled through its clearing house. In addition, the company offers market data services comprising live quotes, delayed quotes, market reports, and historical data services, as well as involves in index services business. CME Group?s customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, and governments. It has strategic partnerships with BM&FBOVESPA S.A., Bursa Malaysia Derivatives, Singapore Exchange Limited, Green Exchange, Dubai Mercantile Exchange, Johannesburg Stock Exchange, and Bolsa Mexicana de Valores, S.A.B. de C.V., as well as joint venture agreement with Dow Jones & Company. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group was founded in 1898 and is headquartered in Chicago, Illinois.

Advisors' Opinion:

• [By Holly LaFon]

  Within equities, we believe that most companies will be negatively impacted by rising interest rates, but we did identify some exceptions. For example, the CME Group is a Chicago-based operator of numerous trading exchanges including a large volume of 铿�ed income futures contracts. Higher interest rates and greater interest rate volatility tends to be a catalyst for greater trading volumes, and hence, greater revenue for CME (CME). The company was our top-performing U.S. investment in the last three months with gains of nearly 30%. The insurance industry is another area that we believe can offer resilience in the face of rising rates. This quarter we added to our positions in Manulife Financial in Canada, AmTrust Financial in the U.S., and introduced U.K.-based Aon to our international portfolio. Many of our insurance companies enjoyed strong performance this quarter and helped offset the declines suffered within the 铿�ed income portfolio.

• [By Roberto Pedone]

  One financial market player that's starting to move within range of triggering a major breakout trade is CME Group (CME), which offers products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. This stock has been in play with the bulls so far in 2013, with shares up sharply by 48%.

  If you take a look at the chart for CME Group, you'll notice that this stock recently formed a triple bottom chart pattern at $70.42, to $69.88 and $70.28 a share. Following that bottom, shares of CME have now started to trend back above its 50-day moving average of $72.70 a share. That move is quickly pushing CME within range of triggering a major breakout trade.

  Traders should now look for long-biased trades in CME if it manages to break out above some near-term overhead resistance levels at $75.50 to $77.65 a share and then once it clears its 52-week high at $79.45 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.84 million shares. If that breakout hits soon, then CME will set up to enter new 52-week-high territory above $79.45, which is bullish technical price action. Some possible upside targets off that breakout are $90 to $100 a share.

  Traders can look to buy CME off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $72.70 a share or just below more support at $70 a share. One can also buy CME off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Healthcare.gov needs a lot of work, but it's fixable

The official Obamacare site may not be perfect, but its problems are mostly solvable.

NEW YORK (CNNMoney) If you're able to connect to the Obamacare website and enroll -- a big if -- healthcare.gov actually isn't the worst website in the world.

I got through after a week of trying, and found signing up for Obamacare to be a fairly straightforward process. (I get insurance through Time Warner (TWX, Fortune 500), so I didn't actually have to seal the deal).

If you can get past the well-documented registration roadblock, the process of entering all the requisite information on you and your family is easy.

After finishing with the necessary data entry, you'll be shepherded to the marketplace where you can shop actual plans.

Best Dividend Companies To Watch For 2014

Here you can select which tiers you're interested in, which is to say how much you'd like to pay and how comprehensive a plan you want.

Choosing a tier spits out a list of plans. The results page will give you a basic overview of each plan, and if you see specific ones you like, you can tag them and get a more in-depth, side-by-side comparison.

Related story: Obamacare website a work in progress

Healthcare.gov may not win any design awards, but for the most part, this works -- even if load times are really, really slow.

But the site's designers could have made the language less jargon-heavy. If Obamacare is designed for people who presumably aren't familiar with health care enrollment, how about an explanation of key insurance terms like premiums and deductibles?

Obamacare's eligibility requirements also could use some explaining. When attempting to enroll for health care in several different states, I was! sometimes deemed "ineligible," presumably because I did not provide a permanent address. But the site often failed to inform me of that fact, or what next steps might be. Part of the problem seemed to be due to a glitch that prevented the site from displaying certain data specific to my application.

But even when ineligibility is explained, the site more or less just shrugs its shoulders at the issue. It doesn't even allow users to go back and search for any errors in their applications.

Related story: Obamacare website's 6 biggest contractors

All the site says is that applicants can appeal decisions by phone or mail.

Ultimately, the biggest issues with the site seem to be the things President Obama is promising his staff can fix: slow load times, faulty logins and missing information. And healthcare.gov has improved since its launch.

For instance, the Department of Health added one big feature -- the option to research plans without first having to fill out an application.

But even if those issues are remedied, healthcare.gov would still feel like it was designed by a bunch of bureaucrats who didn't think about the end-user experience. When it works, it's not a particularly bad website -- at least for people who understand health care jargon and know exactly what they want from their plan.

Unfortunately, that's not exactly the target audience for Obamacare.

Windows 8: Microsoft's Qwikster Moment

Microsoft (NASDAQ: MSFT  ) pulled a Netflix (NASDAQ: NFLX  ) move last year -- and not in a good way.

The Windows 8 update was a radical departure from the usual Windows fare. If you sharpened your computing skills using the nearly 20-year-old Windows 95 interface, then you could still get around Windows Vista or 7 with little trouble. But Windows 8 reset every expectation you might have brought along. The software was clearly optimized for touchscreen tablets first, then grafted onto traditional PC systems with a half-barked order to like it or else. Users largely hated the abrupt shift and complained in droves.

So far, so Qwikster-like. Netflix built a successful DVD-mailing video-rental service with a bit of digital streaming on the side. Customers started getting used to the complete DVD library and convenient streaming service, side by side. Life was good, and share prices climbed as high as $300.

Then, with little warning, the company split the streaming service apart from DVD mailers and asked customers to swallow it. DVDs were scheduled to spin off into a totally separate entity. The proposed name Qwikster quickly became a curse word, and users only saw decreased convenience for a higher total price -- kind of like the forced march into Microsoft's tablet-oriented Metro experience.

And that's where the similarities end.

Netflix backed out of the Qwikster dead end swiftly and gracefully. CEO Reed Hastings posted a public apology and scrapped the wholesale Qwikster separation. He still introduced separate DVD and streaming plans but kept them integrated under one service umbrella. It hasn't been a smooth ride, but share prices have tripled from the Qwikster lows. Splitting off the DVD service might be a realistic idea nowadays. Qwikster was a timing error more than anything else.

Microsoft could have followed a similar path: drop the most controversial features of Windows 8 or at least make them optional, rather than mandatory; bring back the good old "Start" menu for users who feel lost without it; leave the tablet-like app store in the ditch, and bring it back when customers are ready for it; and train people on tablets first and then introduce the newly familiar features of the core Windows experience.

But no, that's not what Microsoft is doing. Redmond is about to introduce a Windows 8.1 update, and it's a free upgrade for existing Windows 8 users. It's a golden opportunity to back off the largest issues with an unpopular platform. Instead, Microsoft decided to tweak a feature here and there while keeping the core experience far too intact. We're talking about cosmetic changes that do nothing to smooth over the jarring transition from older Windows systems.

For example, the missing "Start" button is back, but without the cascading program menu you're used to. Instead, the familiar button becomes just another way (I think there are about four different methods now) to bring up the new start screen -- a brand-new Windows 8 feature with no equivalent in older systems.

Windows users might have appreciated a kinder, gentler approach to the new experience. Windows 8 may in fact be exactly what Microsoft needs in the long run as tablets and smartphones continue to replace full-fledged PC systems for most uses. But we're missing an intermediate step: a hybrid model that lets you play around with the new stuff while falling back to the old way for serious work -- like the current Netflix model, where DVD remains an option if you're nervous about this newfangled streaming-video idea.

That's why Microsoft shares aren't bouncing back, whereas Netflix shares rose like a phoenix from the ashes of a horrendous idea. Instead, Microsoft stock has largely paced right alongside its Dow Jones (DJINDICES: ^DJI  ) peers since the Windows 8 cat was let out of the bag. And I think investors are being too generous, because Microsoft isn't even pretending to fix the root causes of this slowdown.

MSFT data by YCharts

Microsoft's trailing earnings are down 29% over the last year, and share prices are up 17% for no good reason. I don't think that's fair or sustainable.

It's been a frustrating path for Microsoft investors, who have watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, 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 be sure to claim a copy of this report now by clicking here.

Will the Surging Shale Gas Supply Hammer Natural Gas Stocks?

Last week, the Potential Gas Committee released a new report that estimates the potential natural gas resources available in the U.S. at 2,384 trillion cubic feet, an eye-popping 26% increase over the group's late 2010 calculation. While reduced natural gas prices have led to such projects as the Clean Energy Fuels (NASDAQ: CLNE  ) America's Natural Gas Highway and Berkshire Hathaway's (NYSE: BRK-A  ) BNSF Railway pilot program to test liquefied natural gas (LNG) locomotives, the price of the commodity has also put downward pressure on natural gas stocks in general – Chesapeake Energy (NYSE: CHK  ) , for example, is down about 40% over the last two years.

As is the case with most things, the impact on the long-term viability of LNG as a U.S.-based substitute for other energy sources is one of balance. If the right blend of supply and demand can be maintained, natural gas stocks should soar. If supply becomes too plentiful, however, driving down prices too much, companies will have less financial incentive to develop natural gas further. With the explosion of shale-based supply, the impact on natural gas stocks is in its infancy but a critical area for investors to watch.

The report
The group bases its report on how much natural gas it believes is recoverable in the U.S. using only currently available technologies, but ignoring any cost constraints that might act as a disincentive to the actual recovery of the supply. The boom in hydraulic fracturing – more commonly referred to as fracking – is primarily responsible to the increase. Geographically, the Marcellus Shale, stretching from New York across Pennsylvania to Ohio, has been at the center of the supply glut. Both Chesapeake and Range Resources (NYSE: RRC  ) have large holdings in the area. Range Resources has faced far fewer non-natural-gas setbacks than Chesapeake – specifically, Range did not suffer from the misbehavior of its CEO – and its stock is up nearly 50% over the last two years. The fates of different natural gas stocks have been very company-specific of late.

World supply
One of the major concerns that has been explored by natural gas stocks' shareholders, industry insiders, and politicians alike is the demand for exportation of LNG. There is a significant supply disparity that has led to a price discrepancy of nearly five-to-one for European versus U.S. natural gas. As such, the demand to export a portion of supply is quite high, particularly among companies. U.S. law on this subject is very strict and to date, only Cheniere (NYSEMKT: LNG  ) has been given permission to export small quantities. This license may be a central reason why among the natural gas stocks discussed, Cheniere is up over 200% in the last two years.

CHK data by YCharts

The impact of greater supply
While the short-term pressure on natural gas stocks created by this additional supply may be negative, ultimately, it should be seen as a positive. The knowledge that there is a long-term supply of natural gas means that projects like the one being undertaken by Clean Energy have a chance to take root. The company is attempting to install a series of LNG fueling stations along key trucking roots across the country in an effort to promote using LNG for the transport of more goods. The estimated quantity is roughly 90 times 2012's consumption of natural gas. As more projects like this are implemented, natural gas stocks should continue to be considered strategic long-term investments that belong in your portfolio.

Energy investors would be hard-pressed to find another company trading at a deeper discount than Chesapeake Energy. Its share price depreciated after negative news surfaced concerning the company's management and spiraling debt picture. While the debt issues still persist, giant steps have been taken to help mitigate the problems. To learn more about Chesapeake and its enormous potential, you're invited to check out The Motley Fool's brand-new premium report on the company. Simply click here now to access your copy.

A Roth Conversion Formula

Congress has placed some of your money on a bait pedal. Can you deftly remove it without getting trapped? I think you can.

The bait is something called a Roth conversion, wherein you pay taxes on retirement savings now in return for a permanent tax shield on the portfolio. It's a scary business, since you could be injured by future tax law changes. But this is an occasion to take a calculated risk.

I'll assume that you have both assets in a tax-deferred IRA or 401(k) and some spare cash outside that account. Say you have a $50,000 slice of your retirement pot that you might convert, you are in a 40% tax bracket (federal and state combined) and you have $20,000 sitting around. If you do the conversion, $50,000 gets added to your taxable income this year and you hand over the 20 grand to grateful tax collectors.

Let's suppose that you won't be spending this retirement money for a few decades, and that it will have quadrupled by then. The transaction leaves you with $200,000 free and clear at the back end.

What if you don't convert? The $50,000 still turns into $200,000 inside the account, but to get it out you have to pay tax. If your bracket remains the same, the retirement account will be worth only $120,000 to you.

By choosing not to convert, you would also have the $20,000 to invest. But this sum won't quadruple. Outside your tax shelter, it gets whacked every year for taxes and compounds slowly. You'll be lucky if it grows to $60,000. Aftertax spending money for the nonconverter: $180,000, or $20,000 less.

The usual advice on Rothifying goes like this: If your tax bracket at retirement will be the same or higher, go ahead and convert, but if your tax bracket is likely to be lower, don't do it.

I think that advice is too timid. In this case the Roth choice wouldn't hurt even if your tax rate falls by a fourth, to 30%.

You can, in fact, calculate how far your tax rate has to fall before the conversion becomes a loser. My rough rule of thumb: Rothifying is a bad idea if your tax bracket falls in retirement by the fraction RTN, where R is your annual portfolio return, T is the tax rate on your portfolio, and N is the number of years until you're going to be pulling money out of the IRA.

Say your stocks make 7% a year, you pay a 20% tax on dividends and capital gains, and the money will stay put for 18 years. Then the question is whether your tax bracket for ordinary income is going to fall by the fraction 7% times 20% times 18, or a fourth.

This RTN shortcut overstates the case for Rothifying a bit, so give yourself a margin of safety. Convert only if your bracket is likely to fall by a lot less than that RTN fraction, and convert only a portion of your account. If you're 52 and can stay invested for 18 years, and if your bracket is likely to fall only a little (say, from 40% to 35%), snatch the Roth bait.

It's scary to prepay taxes, and, yes, there is some chance that Congress will spring the trap, taxing Roth account holders. But this would instantly end the flow of accelerated revenue from conversions, to which the government is now addicted. So I think the risk is low. More likely are rising tax rates, with the result that your conversion pays off better than you expected.

Leave some savings unconverted, so that you or a surviving spouse can do a strategic Roth conversion later. You might want it to offset a large deduction, such as for nursing home expenses.

A further refinement for Roth investors is to carve up a blended portfolio into separate accounts in order to maximize the potential value of your right to undo a conversion if an account goes down in value. If you are Rothifying a diversified bond fund, chop it into separate high-grade and junk positions.

Similarly, you can cut up your equity exposure into separate accounts for U.S. and foreign stocks. If there's enough money involved, it may make sense to slice the baloney even thinner, with separate funds invested in large and small stocks or value and growth stocks.

I explain the carve-up strategy here. If you take this route, use low-cost exchange-traded funds for the different investing styles. Tickers of ETFs that work for this purpose are: for high-grade bonds, SCHZ; for junk corporate bonds, JNK; for foreign stocks, VEA; for large, medium and small U.S. stocks, SCHX, VO and SCHA.

I explain one kind of strategic Roth conversion in an article about annuities, A 10% Annual Payout For Retirees.

Can UPS Post Higher Prices?

With shares of United Parcel Service (NYSE:UPS) trading around $90, is UPS an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

United Parcel Service is a package delivery company. The company delivers packages each business day for 1.1 million shipping customers to 7.7 million consignees in over 220 countries and territories. Last year, United Parcel Service delivered an average of 16.3 million pieces per day worldwide or a total of 4.1 billion packages. It serves the global market for logistics services, which include transportation, distribution, forwarding, ground, ocean and air freight, brokerage, and financing. United Parcel Service operates in three segments — U.S. Domestic Package, International Package, and Supply Chain & Freight.

United Parcel Service's labor union woes still haven't been resolved, according to the Wall Street Journal, and the shipping company is under pressure as the busy holiday season approaches. Teamsters-represented employees rejected two out of seven riders to their contract. The contract supplements that were rejected have to do with overtime pay, wages for part-time employees, and health-care. The Wall Street Journal said that UPS still has “a lot more work to do” before each rider on the contract that was approved in June is negotiated and UPS can move forward without the danger of potential labor disputes.

T = Technicals on the Stock Chart Are Strong

United Parcel Service stock has been exploding to the upside since the Financial Crisis. The stock is currently trading near all time high prices and looks ready to test them again. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, United Parcel Service is trading above its rising key averages, which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
United Parcel Service Options	19.22%	80%	77%

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

	Put IV Skew	Call IV Skew
October Options	Flat	Average
November Options	Flat	Average

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

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

E = Earnings Are Mixed Quarter-Over-Quarter

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

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	-1.74%	8.00%	-346.63%	-55.96%
Revenue Growth (Y-O-Y)	1.18%	2.27%	2.86%	-0.72%
Earnings Reaction	-0.11%	2.29%	-2.38%	3.03%

United Parcel Service has seen decreasing earnings and increasing revenue figures over the last four quarters. From these numbers, the markets have been mixed about United Parcel Service’s recent earnings announcements.

P = Weak Relative Performance Versus Peers and Sector

How has United Parcel Service stock done relative to its peers, FedEx (NYSE:FDX), Air T (NASDAQ:AIRT), Air Transport Services Group (NASDAQ:ATSG), and sector?

	United Parcel Service	FedEx	AirT	Air Transport Services Group	Sector
Year-to-Date Return	22.81%	25.93%	29.89%	83.54%	39.25%

United Parcel Service has been a poor relative performer, year-to-date.

Conclusion

United Parcel Service is a package delivery company that offers its services to consumers and companies around the world. Labor union problems have still not been resolved which may be a problem during the upcoming holiday season. The stock has been surging higher over the last several years and is now trading slightly below all time high prices. Over the last four quarters, earnings have been decreasing while revenues have been increasing which has produced mixed feelings among investors about recent earnings announcements. Relative to its peers and sector, United Parcel Service has been a weak year-to-date performer. WAIT AND SEE what United Parcel Services reports during its upcoming earnings release.

How Will Pfizer's Earnings Look Tomorrow?

Tomorrow, Pfizer (NYSE: PFE  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever surprises inevitably arise. That way, you'll be less likely to have an uninformed, knee-jerk reaction that turns out to be exactly the wrong move.

As the larger of the pure pharmaceutical plays in the Dow Jones Industrials (DJINDICES: ^DJI  ) , Pfizer has offered investors a nice mix of solid dividend income and growth potential from its pipeline of drug candidates. But after going over the patent cliff in recent years, Pfizer has had to work harder than ever to keep itself moving forward. Let's take an early look at what's been happening with Pfizer over the past quarter and what we're likely to see in its quarterly report.

Stats on Pfizer

Analyst EPS Estimate	$0.56
Change From Year-Ago EPS	(3.4%)
Revenue Estimate	$14 billion
Change From Year-Ago Revenue	(6%)
Earnings Beats in Past 4 Quarters	3

Source: Yahoo! Finance.

Can Pfizer stay healthy this quarter?
Analysts have been largely neutral on Pfizer's earnings prospects lately, having added a penny per share to their estimates for the first quarter but also cut their full-year 2013 consensus by a penny. However, investors have been more optimistic, bidding the stock up nearly 14% since late January.

The big news for Pfizer this quarter is that it will be the first full quarter since blood-thinner Eliquis got FDA approval. With analysts expecting as much as $3 billion to $5 billion in annual sales for the drug, both Pfizer and development partner Bristol-Myers Squibb (NYSE: BMY  ) are relying on Eliquis to gain blockbuster status and take some of the pressure off their overall revenues.

But Pfizer has plenty of other promising candidates in its pipeline. Earlier this month, breast cancer treatment palbociclib received designation as a "breakthrough therapy," giving Pfizer an expedited pathway through the development, review, and approval process. With the treatment helping patients using Novartis drug Femara more than triple their progression-free survival rates, palbociclib has the advantage of being available in oral form, whereas many of its potential competitors require injection.

The other major move that Pfizer made during the quarter was to launch an initial public offering of 20% of its interest in its Zoetis (NYSE: ZTS  ) animal-health division. Given the prospects for growth in animal health -- pet owners are willing to spend big to keep their pets healthy -- Zoetis will have a good shot at gaining its share of an expanding pie even in the face of strong competition, and Pfizer shareholders will continue to reap rewards of those gains because of Pfizer's 80% ownership of Zoetis.

In Pfizer's quarterly report, look particularly at sales of Eliquis to see if it got off to a good start. If Pfizer's share of revenue from the drug can offset what it lost from Lipitor, then Eliquis could provide a new leg up for the company and its stock.

If you're looking for some long-term investing ideas, you're invited to check out The Motley Fool's brand-new special report "The 3 Dow Stocks Dividend Investors Need." It's absolutely free, so simply click here now and get your copy today.

Click here to add Pfizer to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

HP jumps as Whitman signals more cash for share…

SAN FRANCISCO -- Hewlett-Packard shares jumped more than 5% Wednesday after CEO Meg Whitman signaled more cash for shareholders and expressed confidence in her turnaround of the struggling PC and printer maker.

HP expects to have more financial flexibility to return cash to shareholders, while still investing in the company's future growth, Whitman said during an analyst meeting.

Whitman also said that HP is making "real progress" on a turnaround plan.

HP expects the year-over-year revenue decline in fiscal 2014 will moderate from fiscal 2013, CFO Cathie Lesjak added.

Whitman, the former eBay CEO, took the reins at HP in 2011 just as a downturn in PC demand was taking hold. That has dented HP's growth prospects, but the company still generates mountains of cash.

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After planned capital expenditures, HP expects free cash flow of $6 billion to $6.5 billion in its 2014 fiscal year. The company plans to return at least half of that cash - more than $3 billion - to shareholders through dividends and share repurchases, the CFO said.

HP shares climbed 5.9% to $21.97 during Wednesday afternoon trading. The stock was up almost 10% earlier in the day.

HP stock is up more than 50% so far this year. However, the stock has lost about half its value in the past five years as tablets and other mobile devices have eaten into sales of PCs and laptops, where HP dominates.

Why You Should Stick With Costco Stock

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Even though Costco (COST), the largest membership warehouse chain in America, posted its first profit miss in eight quarters, Wall Street took the news in stride and even sent Costco stock higher.

Why?

Because Costco is that good.

Costco’s earnings stumble came because of higher-than-expected compensation and technology expenses, and wasn't indicative of any operational problems. Moreover, even though the quarterly numbers from COST were not great, they were better than many of its rivals.

Costco is one of many retailers ranging from Nordstrom (JWN) on the high end to Walmart (WMT) on the low end to generate earnings that lagged Wall Street's forecasts. Nonetheless, judging from its earnings, COST is holding its own in these challenging economic times.

During the latest quarter, Costco net income rose 1% year-over-year to $617 million, or $1.40 a share, and last year's fourth quarter had an extra week. Meanwhile, sales were little changed at $31.77 billion.

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But the key metric here is comparable sales, which measures performance at stores opened at least a year. Investors closely watch this since it excludes stores that have recently opened or closed. On that basis, Costco posted a 5% gain, which is outstanding. For comparison’s sake, Target (TGT) reported a 1.2% increase in its most recent quarter, Macy’s (M) saw a 0.8% decline, and Walmart’s same-store sales fell 0.3% in Q2 after a 1.4% decline in Q1.

Costco's business model is equal parts genius and simplicity. Most of the company's profits come from its membership fees, which enables the company to sell some products such as food and generic medicines for at or below cost. For consumers, the savings can be huge — particularly when compared with more conventional supermarkets, especially when bulk purchases are considered.

COST appeals to a broad set of customers. Families — particularly large ones — can save big money on their grocery bills. Small-business owners can find good deals on supplies. People who like to save a few bucks (and who doesn't?) can find bargains on anything, including travel and even caskets.

Costco shoppers buy the chain's rotisserie chicken, which goes for $4.99 and is delicious. COST also positions free samples around the store, which helps boost sales as well. The company's white-label brands are also good buys. Frankly, my wife and I consider ourselves lucky if we get out of Costco spending less than $150.

Plus, Costco, unlike its rivals, also pays workers a decent wage, so if “socially conscious” investing is important to you — and it is for me — you can feel a little better about owning this stock.

One weakness to Costco stock is the company’s consistency; the same merchandise doesn't appear week after week, which can be maddening at times. However, the bargains are so good that consumers appear plenty willing to put up with minor annoyances like this — and considering many Costco shoppers are bargain hunters to begin with, they’re trained to roll with the discount punches.

The other quibble that I have is that its pharmacy hours of operation are not convenient. For reasons that I can't quite understand, my local Costco closes its pharmacy on Sunday when we usually do our shopping.

Costco stock has kept pace with the market, recording 17% gains in 2013 — enough to outdo Walmart, Target and Macy's, among others. Although COST is trading near analysts’ 52-week price target of $118.59 and commands a premium to many rivals at a multiple of 22 times sales, I still think Costco stock has room to run.

The time to buy the shares is now.

As of this writing, Jonathan Berr was long COST. Follow him on Twitter at @jdberr.

Shutdown may idle non-federal workers next week

The federal government shutdown is already affecting contractors and threatens to dampen private-sector employment, at least in the near-term, industry officials say.

Twenty-nine percent of contractors say a shutdown would cause them to delay planned hiring, and 58% said it would have a negative effect on their businesses, according to a survey of 925 contractors this week by the National Association of Government Contractors.

Q&A: 27 more questions answered about the shutdown

One Federal Solution, which provides information technology, health care and training services to various government agencies has furloughed 107 of its 115 employees because federal officials said they're non-essential, says CEO Abdul Baytops.

"We're concerned about employees losing faith" in the company "even though we have no control over it," Abdul says.

Advanced Systems Development, an information technology contractor, already has furloughed an employee who sets up computer networks for the Environmental Protection Agency because federal workers weren't available to approve new funding for the project, says company Chief Financial Officer Mary Lou Patel.

PLAN: GOP offers piecemeal plan to mitigate shutdown

Daniel Stohr, spokesman for the Aerospace Industries Association, which represents defense contractors, says, "We've already seen meetings (between contractors and Defense Department officials) that have been canceled."

Such cancellations could delay work on ongoing projects, such as new weapons systems or information-technology maintenance, Stohr says. Defense contract workers also could be temporarily laid off because the federal employees who supervise them are on furlough or managers aren't available to move ahead with new equipment purchases, according to the aerospace group.

OBAMA: President says GOP has ability to reopen government

Besides the Washington, D.C., metro area, states with high concentrations of both federal and contract workers include Hawa! ii, Arkansas, New Mexico, Oklahoma and Georgia, according to Moody's Analytics.

If the shutdown lasts a week or longer, as many as 250,000 to 300,000 contract workers could be affected in some way, says Fernando Galaviz, chairman of the National Federal Contractors Association. "A week would be like a bad headache," he says. "If it's more than two weeks, they can expect a lot of negative impact."

Galaviz says his members are mostly small businesses that handle tasks such as computer network administration, facilities management and research. "If we have 20 people on a network help desk, (a federal department) may reduce that to 12," he says.

Construction companies that build courthouses, dredge rivers and renovate U.S. park facilities also would be hurt, according to Associated General Contractors, a trade group. Projects could be delayed because government supervisors aren't on job sites to answer critical questions or approve changes, says AGC spokesman Brian Turmail.

Several thousand construction workers could be affected if the shutdown lasts at least a week, he says.

Although most contract workers would be sidelined temporarily, the disruption comes at a pivotal period, with monthly job growth slowing to a pace of 148,000 the past three months from 224,000 the previous three months.

Concerns about a government shutdown have largely focused on the 710,000 to 770,000 non-essential federal workers who are being furloughed, according to estimates by JPMorgan and IHS Global Insight. Each week the government is partially closed would shave 0.12% to 0.16% off annualized economic growth in the fourth quarter, the firms project. But those estimates are based on the lost wages or output of federal employees.

A Moody's study that also examines the impact on contract workers and ripple effects across the economy estimates that a shutdown of even a few days would trim fourth-quarter growth by two-tenths of a percent.

FTSE ends week down after Carney talks on QE

LONDON (MarketWatch) — Most U.K. stocks dropped and the pound rose on Friday after Bank of England Governor Mark Carney reportedly said he sees no need for further bond-buying to spur the U.K. economy.

The FTSE 100 index (UK:UKX)  gave up 0.8% to 6,512.66, closing 1.3% lower on the week.

Click to Play What is attracting venture-capital funding?

Three of Europe's venture capitalists tell the WSJ what types of businesses or startups they look to finance.

Meanwhile, the pound (GBPUSD)  jumped against most major currencies, trading at $1.6133 from $1.6039 on late Thursday.

The moves came after the BOE boss told the Yorkshire Post that the case for expanding the central bank's bond-buying program has weakened as the economy has started to pick up.

"My personal view is, given the recovery has strengthened and broadened, I don't see a case for quantitative easing and I have not supported it," he told the paper.

He said, however, that the central bank would consider more quantitative easing if the recovery falters.

Underlining Carney's point about the recovery, market research firm GfK said consumer confidence in the U.K. rose to -10 in September from -13 in August, marking the highest level since 2007.

The upbeat data weren't, however, enough to lift the U.K.'s benchmark index, partly due to drops for the mining and oil firms. Shares of Anglo American PLC (UK:AAL)  fell 1.9%, Rio Tinto PLC (UK:RIO)   (RIO)   (AU:RIO) dropped 2.3%, and BHP Billiton PLC (UK:BLT) (BHP)   (AU:BHP)  gave up 2.2%.

In the energy sector, shares of BP PLC (UK:BP)   (BP)  fell 0.7% and Royal Dutch Shell PLC (UK:RDSB)   (RDS.B)  dropped 0.6%.

Banks were also broadly lower, with shares of Barclays PLC (UK:BARC)   (BCS) 1.3% lower, Standard Chartered PLC (UK:STAN)  down 0.8% and heavyweight HSBC Holdings PLC (UK:HSBA)   (HBC)   (HK:5)  off 0.8%.

On a more upbeat note, shares of Bunzl PLC (UK:BNZL)  climbed 0.4% after Goldman Sachs lifted the distribution and outsourcing company to neutral from sell.

Also of interest for the London stock market, the U.K. government set the price range for Royal Mail's initial public offering at 260 pence to 330 pence a share and said full trading is expected to start on the London Stock Exchange Oct. 15. Based on the price range, Royal Mail will have a market capitalization of 2.6 billion pounds ($4.17 billion) to 3.3 billion pounds.

Asian markets down on worry over U.S. debt show…

The threat that the partial shutdown of the American government could bring the world's largest economy close to defaulting on its debt was weighing on global markets Monday.

In Asia, Japan's Nikkei index, the regional heavyweight, slumped over 1% to 13,853.32. Hong Kong's Hang Seng index fell 0.7% to 22, 973.95 and India's BSE 30 index lost 0.5% to 19, 808.71. Mainland China markets were closed for a public holiday. Benchmarks across Europe were moving lower.

DEFAULT: Would pound your portfolio

Early-morning stocks were on the decline on Wall Street, too, ahead of Monday's opening bell. Dow Jones industrial average index futures fell 0.8%, Standard & Poor's 500 index futures slumped 1% and Nasdaq index futures were down 0.9%.

Wall Street stocks had posted modest gains Friday, driven by optimism at the time that Washington's bickering politicians would resolve their budget fight. The Dow rose 0.5%, to close at 15,072.58. The S&P 500 index added 0.7%, to 1,690.50. The Nasdaq rose 0.9%, to 3,807.75.

FRIDAY: Stocks shrug off government shutdown so far

But investor anxiety has risen as the U.S. budget impasse between Republicans and the White House drags on.

On Sunday, Republican House of Representatives Speaker John Boehner ruled out a vote on a straightforward bill to raise the government's borrowing authority without concessions from President Obama before an Oct. 17 deadline, moving closer to the possibility of default.

10 Best Value Stocks To Invest In Right Now

"This has really rattled markets and is likely to result in further near-term weakness for global equities," Stan Shamu, a market strategist for IG investors, said in a note to clients.

SMG investment group also cited the U.S. political showdown as the reason for Monday's market declines, saying in an advisory that "the latest comments from politicians showed no signs of progress to r! esolve the budget standoff."

Benchmark oil for November delivery fell 61 cents to $103.23 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 53 cents to close at $103.84 on the Nymex on Friday.

Corporate earnings season will get underway this week.

EARNINGS: When does earnings season start? Don't ask Alcoa

Contributing: Associated Press

Top 10 Low Price Companies To Own In Right Now

In the past month, the budget tablet segment experienced a new round of price cuts by major manufacturers. Barnes & Noble (NYSE: BKS  ) initiated this new price war as the company dramatically slashed the prices of its soon-to-be-discontinued Nook HD and Nook HD+ tablets to clear inventory. Other vendors such as Amazon.com (NASDAQ: AMZN  ) and Hewlett-Packard (NYSE: HPQ  ) have followed suit with more modest price reductions.

Margins are already very thin for tablets, with the exception of Apple's iPad. The most recent round of price cuts could mean that the vendors are selling these tablets at a loss to gain market share.

At some point, investors could reasonably wonder whether there is any point to competing in this market. The non-Apple tablet market has already become fully commoditized, with relatively unknown Chinese vendors offering tablets with specifications equal to the top Android tablets at very low price points. There may be strategic reasons for major American tech companies to keep selling budget Android tablets. However, as an investor, I'm skeptical about the benefits of this strategy in light of the difficulty of merely breaking even in the low-cost tablet market.

Top 10 Low Price Companies To Own In Right Now: Agilent Technologies Inc (A&J)

Agilent Technologies, Inc. (Agilent), incorporated on May 5, 1999, is a measurement company providing bio-analytical and electronic measurement solutions to the communications, electronics, life sciences and chemical analysis industries. During the fiscal year ended October 31, 2011 (fiscal 2011), it had three business segments: electronic measurement business, chemical analysis business and life sciences business. Its electronic measurement business addresses the communications, electronics and other industries. Agilent�� chemical analysis business focuses on the petrochemical, environmental, forensics and food safety industries. Its life sciences business focuses on the pharmaceutical, biotechnology, academic and Government, bio-agriculture and food safety industries. In addition to its three businesses, it conducts research through Agilent Technologies Laboratories (Agilent Labs). In fiscal 2011, the Company acquired A2 Technologies, Lab901 and Biocius Life Sciences Inc. On December 21, 2011, the Company acquired BioSystem Development business and P.V.R. s.r.l., a vacuum pump manufacturer. In February 2012, the Company acquired software solutions and technology for device-level modeling and validation from Accelicon Technologies. In June 2012, the Company acquired cancer diagnostics company, Dako. In August 2012, the Company acquired Aurora SFC Systems, Inc.

Electronic Measurement Business

The Company�� electronic measurement business provides electronic measurement instruments and systems, software design tools and related services that are used in the design, development, manufacture, installation, deployment and operation of electronics equipment, and microscopy products. Related services include start-up assistance, instrument productivity and application services and instrument calibration and repair. It also offers customization, consulting and optimization services throughout the customer's product lifecycle. It sells products and services applicable to a rang! e of communications networks and systems, including wireless communications and microwave networks, voice, broadband, data, and fiber optic networks. Test products include Electronic Design Automation (EDA) software, vector and signal analyzers, signal generators, vector network analyzers, one box testers, oscilloscopes, logic and protocol analyzers, and bit-error ratio testers.

The Company�� wireless communications and microwave network products include radio frequency and microwave test instruments and electronic design automation software tools. These products are required for the design and production of wireless network products, communications links, cellular handsets and base stations. It provides handheld products for the installation and maintenance of wireless networks. Its electronic design automation software tools and instruments are used by radio frequency integrated circuit design engineers to model, simulate and analyze communications product designs at the circuit and system levels.

The Company�� suite of fiber optic test products measure and analyze a range of optical and electrical parameters in fiber optic networks and their components. Components which can be tested with Agilent solutions include source lasers, optical amplifiers, filters and other passive components. Test products include optical component analyzers, optical power meters and optical spectrum analyzers. It sells the products into the general purpose test market, including general purpose instruments, modular instruments and test software, digital test products, semiconductor and board test solutions, electronics manufacturing test equipment, atomic force microscopes and radio frequency and network surveillance solutions. The Company�� general purpose products include spectrum analyzers, network analyzers, signal generators, logic analyzers, digitizing oscilloscopes, voltmeters, multimeters, frequency counters, bench and system power supplies, function generators and waveform synthesizers. Modular! instrume! nts and test software are used by the designers and manufacturers of electronic devices as the building blocks of systems that can be configured for a range of test applications.

The Company�� digital test products are used by research and development engineers across a range of industries to validate the function and performance of their digital product and system designs. These designs include a range of products from digital control circuits to high speed systems, such as computer servers and the gaming consoles. The test products offered include oscilloscopes, logic and serial protocol analyzers, logic-signal sources and data generators.

The Company�� semiconductor and board test solutions enable customers to develop and test semiconductors, test and inspect printed circuit boards, perform functional testing, and measure position and distance information to the sub-nanometer level. It is a supplier of parametric test instruments and systems used to examine semiconductor wafers during the manufacturing process. Its in-circuit test system helps identify quality defects, such as faulty or incorrect parts, that affect electrical performance. Its laser interferometer measurement systems provide precise position or distance information for dimensional measurements. Its atomic force microscopes (AFM) are imaging devices. An AFM allows researchers to observe and manipulate molecular and atomic level features. Its portfolio of AFM products provides customers with tools for a range of nanotechnology applications, including semiconductor, data storage, polymers, materials science and life science studies. The Company�� surveillance systems and subsystems are used by defense and government engineers and technicians to detect, locate and analyze signals of interest. The products offered include receivers for detecting radio frequency signals, probes for detecting wire line signals and software that enables the identification and analysis of these signals. Agilent's electronic measureme! nt custom! ers include contract manufacturers of electronic products, handset manufacturers and network equipment manufacturers who design, develop, manufacture and install network equipment, service providers who implement, maintain and manage communication networks and services, and companies who design, develop, and manufacture semiconductors and semiconductor lithography systems. Its customers use its products to conduct research and development, manufacture, install and maintain radio frequency, microwave frequency, digital, semiconductor, and optical products and systems and conduct nanotechnology research.

The Company competes with Aeroflex Incorporated, Anritsu Corporation, Ansys Corporation, EXFO Electro-Optical Engineering, Inc., National Instruments Corporation, Rohde & Schwartz GmbH & Co. KG, Spirent plc, Danaher Corporation, Bruker Corporation, LeCroy Corporation, Teradyne, Inc., Test Research Inc. and Zygo Corporation.

Chemical Analysis Business

The Company�� chemical analysis business provides application-focused solutions that include instruments, software, consumables and services that enable customers to identify, quantify and analyze the physical and chemical properties of substances and products. Its product categories in chemical analysis include gas chromatography (GC) systems, columns and components; gas chromatography mass spectrometry (GC-MS) systems; inductively coupled plasma mass spectrometry (ICP-MS) instruments; atomic absorption (AA) instruments; inductively coupled plasma optical emission spectrometry (ICP-OES) instruments; software and data systems; vacuum pumps and measurement technologies; services and support for its products. Agilent provides custom or standard analyzers configured for specific chemical analysis applications, such as detailed speciation of a complex hydrocarbon stream, calculation of gas calorific values in the field, or analysis of a new bio-fuel formulation. It also offers related software, accessories and consumable ! products ! for these and other similar instruments. Its MS products incorporate technologies for measuring mass, including single-quadrupole, triple-quadrupole, and ion trap mass spectrometers. It combines its mass spectrometers with other instruments to instruments, such as GC/MS, and ICP-MS. It also offers related software, accessories and consumable products for these and other similar instruments. The Company�� spectroscopy instruments include atomic absorption (AA) spectrometers, inductively coupled plasma-optical emissions spectrometers (ICP-OES), inductively coupled plasma-mass spectrometers (ICP-MS), fluorescence spectrophotometers, ultraviolet-visible (UV-Vis) spectrophotometers, Fourier Transform infrared (FT-IR) spectrophotometers, near-infrared (NIR) spectrophotometers, Raman spectrometers and sample automation products. It also offers related software, accessories and consumable products for these and other similar instruments.

The Company�� vacuum technologies products are used to create, control, measure and test vacuum environments in life science, industrial and scientific applications where clean and vacuum environments are needed. Products include a range of vacuum pumps, including diffusion, turbomolecular and ion getter; intermediate vacuum pumps, including rotary vane, sorption and dry scroll, vacuum instrumentation, including vacuum control instruments, sensor gauges and meters, and vacuum components, including valves, flanges and other mechanical hardware. Its products also include helium mass spectrometry and helium-sensing leak detection instruments used to identify and measure leaks in hermetic or vacuum environments. The Company offers a range of services, including an exchange and rebuild program, assistance with the design and integration of vacuum systems, applications support and training in basic and advanced vacuum technologies. The Company offers a range of consumable products, which support its technology platforms, including sample preparation consumables, suc! h as soli! d phase extraction (SPE) and filtration products, self manufactured GC and LC columns, chemical standards, and instrument replacement parts. Consumable products also include scientific instrument parts and supplies, such as filters and fittings for GC systems; xenon lamps and cuvettes for UV-Vis-NIR, fluorescence, FT-IR and Raman spectroscopy instruments; and graphite furnace tubes, hollow cathode lamps and specialized sample introduction glassware for its AA, ICP-OES and ICP-MS products.

The Company competes with Bruker Corporation, PerkinElmer Inc., Shimadzu Corporation and Thermo Fisher Scientific Inc.

Life Sciences Business

The Company�� life sciences business provides application-focused technologies and solutions, which include instruments, software, consumables and services. Its product categories include liquid chromatography, mass spectrometry, microarrays, polymerase chain reaction (PCR) instrumentation, bioreagents, electrophoresis, software and informatics, nuclear magnetic resonance (NMR) and magnetic resonance imaging (MRI) systems, and, consumables and services. The Agilent liquid chromatograph (LC) portfolio is modular in construction and can be configured as analytical and preparative systems. Agilent's liquid chromatography/ mass spectrometer (LC/MS) portfolio includes instruments built around five analyzer types, such as single quadrupole, triple quadrupole, ion trap, time-of-flight (TOF) and quadrupole time-of-flight (QTOF). It is a provider of microarray-based, genomics research solutions. It provides products for sequencing platforms. Its portfolio of PCR instrumentation, reagents and kits, coupled with its other products, such as microarrays and target enrichment systems for sequencing, provides a range of workflow solutions to customers in the genomics marketplace.

Agilent is a supplier of electrophoretic separation solutions. The 2100 Bioanalyzer analyzes biomolecules or cells in microfluidic networks of channels and wells etched i! nto glass! chips. The 3100 OFFGEL Fractionator resolves proteins or peptides by isoelectric point with liquid-phase recovery. It provides software for instrument control, data acquisition, data analysis, laboratory content and business process management, and informatics. With OpenLab, Agilent has open architecture, which enables capture, analyze, and share scientific data throughout the lab and across the enterprise. It offers a range of consumable products, which support its LC, and MS technology platforms. These consumable products include sample preparation products; self manufactured LC columns and instrument replacement parts, and consumable supplies to meet its customers' analysis needs. It offers a range of startup, operational, educational and compliance support services for measurement and data handling systems. Its support services include maintenance, troubleshooting, repair and training for all of its chemical and bioinstrumentation analysis hardware and software products.

The Company competes with Affymetrix Inc., Bruker Corp., Danaher Corporation, Illumina, Inc., Life Technologies Corp., Thermo Fisher Scientific Inc. and Waters Corp.

Top 10 Low Price Companies To Own In Right Now: Platinum Group Metals Ltd (PLG)

Platinum Group Metals Ltd. (Platinum Group) is a platinum focused exploration and development company conducting work on mineral properties it has staked or acquired by way of option agreements in the Republic of South Africa and in Canada. The Company conducts its South African exploration and development work through its wholly owned direct subsidiary, Platinum Group Metals (RSA) (Proprietary) Limited (PTM RSA). PTM RSA holds the Company�� interests in the Project 1 platinum mine (Project 1) and Project 3. PTM RSA also holds 100% of Wesplats Holding (Proprietary) Limited (Wesplats), and a 37% interest in Wildebeest Platinum (Pty) Limited (Wildebeest), a company set up to hold prospecting rights for the exploration joint venture between the Company and Sable Platinum Mining (Pty) Ltd. (Sable) and Umnotho NREF Joint Venture. In September 2011, it purchased the Providence Copper-Nickel-Cobalt-Platinum Group Metals (Cu-Ni-Co-PGM) property from Arctic Star Exploration (Arctic Star).

Top 5 Low Price Companies To Buy For 2014: Sonic Healthcare Ltd(SHL.AX)

Sonic Healthcare Limited, together with its subsidiaries, provides medical diagnostic services, and administrative services and facilities to medical practitioners. The company offers pathology/clinical laboratory services, and radiology and diagnostic imaging services to medical practitioners, hospitals, community health services, and their collective patients. It has operations in Australia, New Zealand, the United Kingdom, the United States, Germany, Switzerland, Belgium, and Ireland. The company was formerly known as Sonic Technology Australia Limited and changed its name to Sonic Healthcare Limited in 1995. Sonic Healthcare Limited is headquartered in Macquarie Park, Australia.

Top 10 Low Price Companies To Own In Right Now: GTx Inc.(GTXI)

GTx, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of small molecules for the treatment of cancer, cancer supportive care, and other serious medical conditions. The company markets FARESTON (toremifene citrate) 60 mg tablets for the treatment of metastatic breast cancer in postmenopausal women primarily through wholesale drug distributors in the United States. It is developing selective androgen receptor modulators (SARMs), including Ostarine (GTx-024), which has completed Phase II clinical trial for the prevention and treatment of muscle wasting in patients with non-small cell lung cancer; and CapesarisTM (GTx-758), a selective estrogen receptor alpha agonist that has completed Phase IIa clinical trial for the first line treatment of advanced prostate cancer. In addition, the company is developing estrogen receptor beta agonists and other novel compounds that are in preclinical development stage for the treatment of metabo lic diseases, ophthalmic diseases, cancer, psoriasis, and/or pain. The company was founded in 1997 and is headquartered Memphis, Tennessee.

Advisors' Opinion:

• [By Roberto Pedone]

  One biopharmaceutical player that's rapidly moving within range of triggering a major breakout trade is GTx (GTXI), which is dedicated to the discovery, development and commercialization of small molecules that selectively target hormone pathways to treat cancer, osteoporosis and bone loss, muscle loss and other serious medical condition. This stock has been hammered by the bears so far in 2013, with shares off sharply by 53%.

  If you look at the chart for GTx, you'll notice that this stock recently gapped down sharply from over $4 to below $1.50 a share with heavy downside volume. Following that gap down, shares of GTXI have rebounded sharply and started to uptrend, with the stock moving higher from its low of $1.31 to its recent high of $1.96 a share. During that move, shares of GTXI have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of GTXI within range of triggering a major breakout trade.

  Traders should now look for long-biased trades in GTXI if it manages to break out above some near-term overhead resistance at $1.96 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 1.35 million shares. If that breakout triggers soon, then GTXI will set up to re-fill some of its previous gap down zone from August that started just above $4 a share. Some possible upside targets if GTXI gets into that gap with volume are $2.50 to $3 a share, or possibly even $3.50 a share.

  Traders can look to buy GTXI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $1.50 a share. One can also buy GTXI off strength once it takes out $1.96 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.

• [By Keith Speights]

  War of words
  In the stock market, the old saying that "sticks and stones may break my bones, but words can never hurt me" doesn't hold water. GTx (NASDAQ: GTXI  ) investors experienced that reality firsthand this week, with shares dropping 15% from an online article published on Wednesday.

• [By Paul Ausick]

  GTX Inc. (NASDAQ: GTXI) is down 66.9% at $1.38 after posting a new 52-week low of $1.31 earlier today. The biopharmaceutical maker�� shares collapsed on news of a failed trial for its muscle drug.

• [By John Udovich]

  Cancer has been one of the hotter segments of the sizzling biotech sector this year with small cap cancer stocks�Genetics Inc (NASDAQ: CGIX), GTx, Inc (NASDAQ: GTXI) and MetaStat Inc (OTCMKTS: MTST) being among those involved in cancer research or treatment producing noteworthy news for investors to digest. Just consider the following:

Top 10 Low Price Companies To Own In Right Now: Richmond Minerals Inc (RMD.V)

Richmond Minerals Inc. engages in the exploration and development of base and precious metals in northern Ontario and Quebec, Canada. The company primarily explores for iron, copper, gold, uranium, nickel, and chromium deposits. Its principal properties include the Halle Property that is located east of Belleterre, Quebec; and the Ste. Anne du Lac Property that consists of approximately 150 claims located northeast of Mont-Laurier, Quebec. The company is headquartered in Toronto, Canada.

Top 10 Low Price Companies To Own In Right Now: Cougar Energy Ltd(CXY.AX)

Cougar Energy Limited engages in the identification and development of projects using underground coal gasification (UCG) technology primarily in the People?s Republic of China, Mongolia, and Indonesia. The UCG process converts coal in situ into a combustible gas that can be used as a fuel or a chemical feedstock. The company?s flagship operation is the 400 megawatt Kingaroy Power Station project in central Queensland, Australia. It also owns interests in the Wandoan project in the Surat Basin in Queensland; and the MacKenzie project covering an area of 2,380 hectares in Queensland, Australia. The company was founded in 2006 and is based in Melbourne, Australia.

Top 10 Low Price Companies To Own In Right Now: Silvercorp Metals Inc(SVM)

Silvercorp Metals Inc. engages in the acquisition, exploration, development, and operation of silver mineral properties in China and Canada. The company holds interests in four silver, lead, and zinc mines, including the Ying Project, the HPG Project, the TLP Project, and the LM Project at the Ying Mining Camp in the Henan Province of China. It also holds interests in the GC Project, a silver, lead, and zinc mine in the Guangdong Province; and the BYP gold, lead, and zinc mine project in Hunan province, as well as the Silvertip silver, lead, and zinc mine project in northern British Columbia, Canada. The company was formerly known as SKN Resources Ltd. and changed its name to Silvercorp Metals Inc. in May 2005. Silvercorp Metals Inc. is headquartered in Vancouver, Canada.

Top 10 Low Price Companies To Own In Right Now: Reyphon Agriceutical Limited (CZ3.SI)

Reyphon Agriceutical Limited engages in the manufacture and sale of hormone-type pharmaceutical products. Reyphon Agriceutical, through its distributor network, sells its products in the People�s Republic of China, as well as exports to the United States, India, Turkey, Belgium, Canada, Germany, Malaysia, Pakistan, Spain, the United Kingdom, and Vietnam. The company was founded in 2006 and is based in Singapore. Reyphon Agriceutical Limited is a subsidiary of Suntar Investment Pte Ltd.

Top 10 Low Price Companies To Own In Right Now: Li3 Energy Inc(LIEG.OB)

Li3 Energy, Inc., an exploration stage company, focuses on the discovery and development of lithium and potassium brine and nitrate, as well as iodine deposits in Chile, Argentina, and Peru. It holds interests in the Maricunga project, which consists of mining concessions covering an area of approximately 3,553 acres located in the Salar de Maricunga in northern Chile; Cauchari mining concession covering an area of approximately 2,995 acres situated on brine salars in Argentina; and undeveloped mineral claims covering an area of approximately 19,500 acres located in the Regions of Puno, Tacna, and Moquegua in Peru. The company was formerly known as NanoDynamics Holdings, Inc. and changed its name to Li3 Energy, Inc. in October 2009. Li3 Energy, Inc. was founded in 2005 and is based in Lima, Peru.

Top 10 Low Price Companies To Own In Right Now: Asure Software Inc(ASUR)

Asure Software, Inc. provides Web-based workforce management software and services. The company?s software empowers small to mid-size organizations and divisions of large enterprises to operate efficiently, increase worker productivity, and reduce costs. It offers products that optimize workforce time and attendance tracking, benefits enrollment and tracking, pay stubs and W2 documentation, and meeting and event management. The company provides NetSimplicity line of software products, which enable corporations, educational institutions, law firms, and healthcare facilities to manage shared office space, equipment, assets, and resources; and iEmployee suite of time and attendance, and human resources software that enables small to medium-sized businesses for transitioning to an online self-service human resources process. It also offers software maintenance and support, installation, training, and other professional services. The company was formerly known as Forgent Netwo rks, Inc. and changed its name to Asure Software, Inc. in December 2009. Asure Software, Inc. was founded in 1985 and is headquartered in Austin, Texas with additional offices in Warwick, Rhode Island, Vancouver, and British Columbia, as well as in Mumbai, India.