Small businesses worry about shutdown impact

Q: Will the government shutdown (if it happens) have an effect on my business? — Taylor

A: The short answer is that the only effect any shutdown may have is if your business does direct business with the government. If you contract with the government, or get payments from them, then yes, a shutdown would have a negative affect on your business.

More broadly, it's hard to imagine a group less effective, less professional or more shortsighted than these elected "leaders."

GOVERNMENT SHUTDOWN: What to know

If any of us ran our businesses the way they run the country, we would be bankrupt.

Can you imagine running a business this way? Lurching from crisis to crisis, not paying your bills, verging on defaulting on your creditors, threatening to default on your creditors — it is business (and political) malpractice.

The first and foremost agenda of any business is to do the thing it is hired to do. If you own a law firm, then you need to provide competent legal services. If you own a restaurant, then your job is to provide customers with decent food at a fair price.

The job of our elected officials is to run the country for the common good. Yet, they have proven themselves to be utterly incapable of doing this most basic of functions. If they worked for you, or for me, the whole lot of them would be fired, not just because they are incompetent, but for a myriad of other reasons:

• They damage the brand. The people who work with and for you are your brand ambassadors. If they don't get what your business is about, if they care more about their own plan than the good of the whole, they will not portray you in the best light possible and will, in the process, undoubtedly hurt your name and reputation.

When you put your own private agenda ahead of the good of the group, you risk ruining what has taken years to build up — the good name of the entity for which you work, be that a business or a country.

• They lack vision. This is especially t! rue of the president and congressional leaders. His (or her) job is to lead, not unlike a CEO. But if the CEO leads from behind, or doesn't lay out a clear vision of where the business is headed, it's tough to blame the staff when it seems like they don't know where they are going.

If you are elected to be a leader, then lead.

• They are bad for morale. Has there ever been a more depressing time to watch national politics? Has their ever been a Congress less competent than this one? Not in my lifetime. The constant bickering, the inability to work together, the blaming of one another — again, if your staff acted like this, you would clean house. Employees who spend more time fighting than working are bad for morale, bad for business, and yes, bad for the country.

• They are bad with money. When I practiced law,I once had a client who had turned over his business finances to an outside bookkeeper. She ended up robbing him of more than $100,000, and he had to file for bankruptcy. Yes, he was very bad with money, but his crooked bookkeeper wasn't much better.

If a main aspect of your job is to deal with money and create and pass budgets, and you can't even do that, what are you doing in a position of authority?

• They are selfish. Sure, people look out for themselves, but exceptional businesses and countries have people who see the bigger picture and are willing to sacrifice their own short-term agendas for long-term gains by the whole, knowing that a rising tide lifts all boats.

When you risk defaulting the country for short-term political gain, you have proven that you are not fit for the job.

They are bad at their jobs: The leader can't lead. The staff can't think straight. And they barely speak to one another.

It's a recipe for disaster, whether you are a business or a country.

Steve Strauss is a lawyer specializing in small business and entrepreneurship. His column appears Mondays. E-mail Steve at: sstrauss@mrallbiz.com. An archive of his ! columns i! s here. His website isTheSelfEmployed.

Morning Movers: Aeropostale Jumps 11% as Investor Takes Big Stake; Goldman Sachs Upgrades BB&T

Stocks appear set to open little changed today following yesterday’s Larry Summers inspired rally.

AP

Dow Jones Industrials futures have gained 4 points to 15,435, while the S&P 500 has fallen 0.2 point to 1,691. The Nasdaq Composite is up 1.5 points at 3,162.50.

Aeropostale (ARO) has gained 11% to $9.55 after Hummingbird LLC said it had taken an 8% stake in the struggling retailer.

It’s been an active morning for JPMorgan.  Delta Air Lines (DAL) has gained 2.4% to $23.70 in pre-open trading, while U.S. Airways (LCC) has risen 2.4% to $18.50 after being upgraded to Overweight from Neutral at JPMorgan. ConAgra (CAG), meanwhile, has fallen 1.7% to $31.65, after JPMorgan downgraded it to Neutral from Overweight.

BB&T Corp. (BBT) has 1.1% to $34.86 after it was upgraded to Buy from Neutral at Goldman Sachs.

Insiders Are Buying ARC Resources

One energy company has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

The stock is purchased by three or more insiders within one month.

The stock is sold by no insiders in the month of intensive purchasing.

At least two purchasers increase their holdings by more than 10%.

ARC Resources (TSX:ARX) engages in the acquisition, development, exploration and production of oil and gas in Western Canada.

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Insider Buying During the Last 30 Days

Terry Anderson purchased 15,210 shares on Aug. 27 to 28 and currently controls 43,741 shares or less than 0.1% of the company. Terry Anderson is senior vice president, engineering and land of ARC Resources. Terry Anderson increased his holdings by 53.3% during the last 30 days.Jay Billesberger purchased 1,314 shares on Sept. 18 pursuant to a purchase/ownership plan. Jay Billesberger currently controls 3,536 shares or less than 0.1% of the company. Jay Billesberger is vice president, information technology of ARC Resources. Jay Billesberger increased his holdings by 59.1% during the last 30 days.Terrence Gill purchased 13,583 shares on Sept. 18 pursuant to a purchase/ownership plan. Terrence Gill currently controls 28,806 shares or less than 0.1% of the company. Terrence Gill is senior vice president, corporate services of ARC Resources. Terrence Gill increased his holdings by 89.2% during the last 30 days.Neil Groeneveld purchased 2,303 shares on Sept. 16 to 18 pursuant to a purchase/ownership plan. Neil Groeneveld currently controls 31,754 shares or less than 0.1% of the company. Neil Groeneveld is vice president, geosciences and exploration of ARC Resources. Neil Groeneveld increased his holdings by 7.8% during the last 30 days.Cameron Kramer purchased 10,096 shares on Sept. 18 pursuant to a purchase/ownershi! p plan. Cameron Kramer currently controls 13,096 shares or less than 0.1% of the company. Cameron Kramer is senior vice president and chief operating officer of ARC Resources. Cameron Kramer increased his holdings by 336.5% during the last 30 days.Wayne Lentz purchased 2,103 shares on Sept. 18 pursuant to a purchase/ownership plan. Wayne Lentz currently controls 8,214 shares or less than 0.1% of the company. Wayne Lentz is vice president, strategy and business development of ARC Resources. Wayne Lentz increased his holdings by 34.4% during the last 30 days.Karen Nielsen purchased 2,540 shares on Sept. 6 and currently controls 2,540 shares or less than 0.1% of the company. Karen Nielsen is vice president, operations of ARC Resources. Karen Nielsen increased her holdings from zero shares to 2,540 shares during the last 30 days.Myron Stadnyk purchased 18,952 shares on Aug. 27 to Sept. 18 and currently controls 248,281 shares or less than 0.1% of the company. Myron Stadnyk is president and chief executive officer of ARC Resources. Myron Stadnyk increased his holdings by 8.3% during the last 30 days.Insider Buying by Calendar Month

Here is a table of ARC Resources' insider-trading activity by calendar month.

Month	Insider buying / shares	Insider selling / shares
September 2013	40,891	0
August 2013	37,682	0
July 2013	891	0
June 2013	4,922	0
May 2013	35,565	0
April 2013	802	0

There have been 120,753 shares purchased and there have been zero shares sold by the insiders since April 2013.

Financials

ARC Resources reported the second-quarter financial results on Aug. 1 with the following highlights:

Funds from operations	$201.2 million
Net income	$93.3 million
Ne! t debt	$883.7 million
Production	93,436 boepd

Outlook

ARC expects third quarter 2013 production to decline relative to the second quarter, prior to increasing in the fourth quarter of 2013 as new pad wells are brought on production at Ante Creek. ARC expects 2013 full year production to average between 93,000 and 97,000 boe per day.

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Competition

ARC Resources' competitors include Pengrowth Energy (TSX:PGF), Baytex Energy (TSX:BTE) and Lightstream Resources (TSX:LTS).

Here is a table of these competitors' insider-trading activities during the last six months.

Company	Insider buying / shares	Insider selling / shares
PGF	9,379	25,780
BTE	86,500	89,571
LTS	23,051	40,268

Only ARC Resources has seen intensive insider buying during the last 30 days.

Conclusion

There have been eight different insiders buying ARC Resources and there have not been any insiders selling ARC Resources during the last 30 days. Six of these eight insiders increased their holdings by more than 10%.

There are seven analyst buy ratings, 10 neutral ratings and one sell rating with an average target price of $29.24. ARC is paying $0.10 monthly dividends, which gives the stock a dividend yield of 4.6%. ARC's proved plus probable reserves are 607 mmboe. I believe the stock could be a good pick from the current price level based on the intensive insider buying.

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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Hedgeye Details Short Case On Kinder Morgan

Reuters

Hedgeye Risk Management today released its written case against U.S. energy pipeline operator Kinder Morgan and its related entities.

All four of the tickers Hedgeye suggests shorting instead rallied between 1% and 2% today. While it’s a good day for Mr. Market, clearly investors don’t think the short case delivered enough punch.

In a nutshell: Hedgeye says investors should worry more about Kinder’s pipeline maintenance and spending therein. And  it says Kinder’s exploration and production business, while small, is NOT a pipeline enterprise and valuation should reflect that.  Moreover, Hedgeye says it thinks  Kinder Morgan's strategy is to “starve its pipelines and related infrastructure of routine maintenance spending” so that it can maximize distributable cash flow and payments to the general partner, Kinder Morgan (KMI). As a structure, MLPs pay out most of their cash flow as tax-deferred distributions to investors in their “units,” as shares are called.

But KMI’s structure is more complex, and the general partner is collecting some hefty distributions from limited partners in the form of “incentive distribution rights.” 

Top 10 Tech Companies For 2014

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

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

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

Top 10 Tech Companies For 2014: Gentium SpA(GENT)

Gentium S.p.A., a biopharmaceutical company, focuses on the development and manufacture of its primary product candidate, defibrotide, an investigational drug based on a mixture of single-stranded and double-stranded DNA extracted from pig intestines. It develops defibrotide for the treatment and prevention of hepatic veno-occlusive disease (VOD), a condition that occurs when veins in the liver are blocked as a result of cancer treatments, such as chemotherapy or radiation, that are administered prior to stem cell transplantation. The company has completed a Phase III clinical trial of defibrotide for the treatment of severe VOD in the United States, Canada, and Israel; and a Phase II/III pediatric trial in Europe for the prevention of VOD. It also offers sulglicotide that is developed from swine duodenum, and has ulcer healing and gastrointestinal protective properties in South Korea; and urokinase, which is made from human urine to treat various vascular disorders, such as deep vein thrombosis and pulmonary embolisms. The company was formerly known as Pharma Research S.r.L. and changed its name to Gentium S.p.A. in July 2001. Gentium S.p.A. was founded in 1993 and is headquartered in Villa Guardia, Italy.

Top 10 Tech Companies For 2014: GeoEye Inc.(GEOY)

GeoEye, Inc., together with its subsidiaries, provides earth imagery and imagery information products, as well as image processing services to the United States and foreign government defense and intelligence organizations, domestic federal and foreign civil agencies, and commercial customers. It owns and operates two earth-imaging satellites, which include GeoEye-1 and IKONOS; and three airplanes with high-resolution imagery collection capabilities. The company?s satellite imagery products include Geo, GeoProfessional, and GeoStereo that provide the customers with time-critical visual imagery, data, and information. Its aerial imaging products consist of digital aerial imaging and light detection and ranging imaging (LiDAR). The company?s production services range from the generation of precision imagery products to the extraction of site-specific features for the company?s customer?s database development. These production services include Georectification, Tonal Correcti on, Image Mosaicing, and Orthorectification; and LiDAR elevation data, maps, topographic maps, digital orthophoto imagery, remote sensing services, and survey and inventory services, as well as geospatial information system, consulting, and implementation. The company serves customers in online mapping, geospatial information system, precision mapping, infrastructure, oil and gas, environmental monitoring, agriculture, mining, utilities, and transportation markets. It sells its products through direct and indirect sales channels, resellers, direct salespeople, strategic partners, and customer service and production services personnel. GeoEye, Inc. is based in Herndon, Virginia.

Top 5 Stocks To Buy Right Now: Rackspace Hosting Inc(RAX)

Rackspace Hosting, Inc. operates in the hosting and cloud computing industry. It provides information technology (IT) as a service, managing Web-based IT systems for small and medium-sized businesses, as well as large enterprises worldwide. The company?s service suite includes dedicated hosting comprising customer management portal and other management tools that manage data center, network, hardware devices, and operating system software; and cloud computing that enables customers to provide and manage a pool of computing resources, as well as delivery of computing resources to business when they need them. It offers cloud servers, cloud files, and cloud sites, as well as cloud applications, such as email, collaboration, and file back-ups; and hybrid hosting that provides a combination of dedicated hosting and cloud computing services. The company also offers customer support services. It sells its service suite through direct sales teams, third-party channel partners, an d online ordering. The company was formerly known as Rackspace.com, Inc. and changed its name to Rackspace Hosting, Inc. in June 2008. Rackspace Hosting, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.

Advisors' Opinion:

• [By Inyoung Hwang]

  Stephen Penwell, Morgan Stanley�� director of North American equity research, says his firm did a report that featured companies whose profit margins had risen even as global economic events such as the European debt crisis had intensified. They included discount chain Dollar General Corp. (DG), Dunkin��Brands Group Inc. (DNKN) and Web services firm Rackspace Hosting Inc. (RAX)

Top 10 Tech Companies For 2014: Yandex N.V.(YNDX)

Yandex N.V., an Internet and technology company, operates an Internet search engine in Russia and internationally. It offers access to a range of information available online; localized homepages for specific geographic markets; and personalized and email services. The company also provides specialized search services comprising news aggregation and information services; and price comparison services, such as product information, price comparisons, and consumer-generated reviews of products and online retailers, as well as other specialized search services, including search services for images, videos, music, theatres, televisions, weather, jobs, transportation, cars, and real estate. In addition, it offers desktop applications consisting of specialized toolbar for Web browsers, Russian-to-English and English-to-Russian keyboard layout switcher, and customized browser versions; and server applications for indexing and searching files in various formats. Further, the compan y provides text-based advertising and display advertising services for advertisers on its Websites and Yandex ad network member Websites; and Yandex.Market, a price comparison service, which offers a platform for retailers to reach consumers in a targeted manner. Additionally, it provides services and tools for businesses comprising Yandex.Webmaster that allows Webmasters to control how their Website is seen by its search engine; Yandex.Metrica, a Web statistics analysis tool; Yandex Site Search, a search tool for Webmasters and Website owners; Yandex.Mail for Domain Owners that allows users to create email accounts with their own domain names; Yandex APIs and Widgets that enable developers to use its technologies in their own businesses; and Yandex.Money, an online payment system. Yandex N.V. was incorporated in 2004 and is based in The Hague, the Netherlands.

Advisors' Opinion:

• [By Global Investing Editor]

  Our new stock idea is a speculation name, Yandex N.V., (YNDX), which is a Dutch company but really a Russian Internet search engine firm. Yandex trades on the Nasdaq exchange when it hasn't crashed, at around $33. Bank of America Merrill Lynch has a target price of $45. It is rated 'buy by 8 analysts, "strong buy" by 2, and "hold" by 2.

Top 10 Tech Companies For 2014: Atlantic Tele-Network Inc.(ATNI)

Atlantic Tele-Network, Inc. provides telecommunications services to rural, niche, and other under-served markets and geographies in the United States, Bermuda, and the Caribbean. The company, through its subsidiaries, provides wireless and wireline connectivity to residential and business customers, including wireless voice and data services to retail customers under the Alltel name in rural markets located principally in the Southeast and the Midwest; wholesale wireless voice and data roaming services to national, regional, local, and selected international wireless carriers in rural markets located principally in the Southwest and Midwest United States; wireless voice and data services to retail customers under the Cellink name in Guyana, as well as under the CellularOne name in other smaller markets in the Caribbean and the United States; domestic wireline local and long distance telephone services in Guyana; and international voice and data communications in Guyana and internationally. It also offers facilities-based integrated voice and data communications services to enterprise and residential customers in New England primarily in Vermont; and wholesale transport services in New York State. In addition, the company owns and operates terrestrial and submarine fiber optic transport systems. Atlantic Tele-Network, Inc. was founded in 1987 and is headquartered in Beverly, Massachusetts.

Top 10 Tech Companies For 2014: American Superconductor Corporation(AMSC)

American Superconductor Corporation, together with its subsidiaries, provides wind and power grid products and services primarily in North America, Europe, and the Asia-Pacific. The company?s Wind segment designs, develops, and licenses engineered wind turbine designs to wind turbine manufactures; provides engineering and customer support services; supplies power electronics and software-based control systems to wind turbine manufactures to regulate voltage, control power flows, and maximize wind turbine efficiency; offers consulting services to the wind industry; and provides products that enhance power quality for industrial operations. This segment serves the transmission and distribution, wind power, and manufacturing industries. Its Grid segment manufactures high-temperature superconductor wire and coils; designs and develops superconductor products, such as power cables, fault current limiters, electric motors, generators, and synchronous condensers; manages large-s cale superconductor projects; and provides transmission planning services that identify power grid congestion, poor power quality, and other risks. This segment?s products enable electric utilities and renewable energy project developers to connect, transmit, and distribute power. Its products include D-VAR systems that provide the reactive power needed to stabilize voltage on the grid, and are used to connect wind farms and solar power plants to the power grid; SolarTie Grid Interconnection Systems, which provide the inversion and reactive compensation necessary to connect megawatt-scale solar photovoltaic power plants to the power grid; superconductor wires for various applications, including motors, generators, fault current limiters, and power cables; and power cable systems that are manufactured by third parties, as well as turnkey project management services to electric utilities. American Superconductor Corporation was founded in 1987 and is headquartered in Devens, Massachusetts.

Top 10 Tech Companies For 2014: Youku.com Inc.(YOKU)

Youku.com Inc. operates as an Internet television company in the People?s Republic of China. Its Internet television platform enables consumers to search, view, and share video content across various devices. The company?s services for users comprise video content library consisting primarily of professionally produced content, including television serial dramas, movies, event reports, variety shows, and music videos under the Youku brand. It also provides user-generated content through Youku Paike and Youku Niuren programs; and produces a range of content, such as sponsored Web serial dramas, reality shows, interviews, and variety shows under Youku Originals brand. The company?s other services for users comprise online video search and discovery, online community, video space, real time commenting, and searchable community message board, as well as wireless video, iPhone channels and iPad, and P2P downloadable software client services. In addition, it offers online advert ising services to various advertising companies operating in fast moving consumer goods, information technology services, automobile manufacturing, electronics, telecommunications, financial services, e-commerce, and online game industries. The company?s products and services for advertisers and customers include online advertising services, such as in-video, display, sponsorship, and other forms of advertisements; targeting solutions; viral video advertisements; product placements; subscription-based services that enables users to watch advertisement-free premium content, such as high-definition movies; and sub-licensing content. It sells its advertising services through third-party advertising agencies comprising members of American Association of Advertising Agencies and Chinese advertising agencies. The company was formerly known as 1Verge Inc. and changed its name to Youku.com Inc. in June 2008. Youku.com Inc. was founded in 2005 and is headquartered in Beijing, the Peo ple?s Republic of China.

Top 10 Tech Companies For 2014: Hanwha SolarOne Co. Ltd.(HSOL)

Hanwha Solarone Co., Ltd., an investment holding company, engages in the manufacture and sale of silicon ingots, silicon wafers, and PV cells and modules. The company also offers mono crystalline and multi crystalline silicon cells; and provides PV module processing services. It sells its products to solar power system integrators and distributors primarily in Germany, Italy, Australia, the United States, the Czech Republic, Spain, and China. The company was formerly known as Solarfun Power Holdings Co., Ltd. and changed its name to Hanwha SolarOne Co., Ltd. in December 2010. Hanwha Solarone Co., Ltd. was founded in 2004 and is based in Qidong, the People?s Republic of China.

Advisors' Opinion:

• [By Paul Ausick]

  Stocks on the move: Nokia Corp. (NYSE: NOK) is up 31.5% at $5.13 on the announcement that Microsoft Corp. (NASDAQ: MSFT) will acquire the Finnish firm�� mobile phone business for $7.2 billion. Chinese solar energy stocks are getting a boost again today, with Hanwha SolarOne Co. (NASDAQ: HSOL) up more than 15.9% and ReneSola Ltd. (NYSE: SOL) up 14.9%.

• [By Paul Ausick]

  Big Earnings Movers: Hanwha SolarOne Ltd. (NASDAQ: HSOL) is down 6.8% at $3.68. Hovnanian Enterprises Inc. (NYSE: HOV) is up 2.2% at $5.15.

  Stocks on the move: Delta Air Lines Inc. (NYSE: DAL) is up 9.3% at $21.74 after being adding to the S&P 500 index. BlackBerry Ltd. (NASDAQ: BBRY) is up 6.4% at $11.53 on reports that a former board member has nearly lined up financing to take the company private. Molex Inc. (NASDAQ: MOLX) is up 31.6% at $38.60 following an agreement to be acquired by Koch Industries Inc.

Top 10 Tech Companies For 2014: BCD Semiconductor Manufacturing Limited(BCDS)

BCD Semiconductor Manufacturing Limited, together with its subsidiaries, engages in the design, manufacture, and sale of power management analog integrated circuits (ICs). It offers a portfolio of approximately 300 products, including power management ICs in the linear, AC/DC, and DC/DC categories, as well as other ICs that control the speed of a cooling fan or detect the opening/closing of a cell phone or notebook screen. The company?s linear IC products amplify and compare analog signals or regulate a supply voltage within a tight tolerance and are used in PC motherboards, graphics cards, DVD players, modems and routers, power chargers and adapters, switching mode power supplies, LCD/LED televisions and monitors, notebook computers, cell phones, other portable electronic devices, and household appliances. Its AC/DC IC products convert an AC supply voltage into a DC voltage and are used in cell phone adapters, modem and router adapters, notebook computer adapters, switch ing mode power supplies, LCD/ LED televisions and monitors, cordless phone chargers, small appliance chargers and adapters, and PC power supplies and lighting; and DC/DC IC products convert a DC voltage into a higher or lower DC voltage and are used in LCD/LED televisions and monitors, modems and routers, WLAN cards, set-top boxes, cell phones, car chargers, and other portable electronic devices. The company also offers wafer foundry services directly to end customers through foundry service agreements. BCD Semiconductor Manufacturing Limited sells its products to the computing, consumer, and communications electronics OEM and ODM customers primarily through a regional network of independent distributors. The company offers its products primarily in the People?s Republic of China, Hong Kong, Taiwan, South Korea, and North America. BCD Semiconductor Manufacturing Limited was founded in 2000 and is headquartered in Shanghai, the People?s Republic of China.

Top 10 Tech Companies For 2014: Zoommed Inc. (ZMD.V)

ZoomMed Inc. and its subsidiaries engage in the development and marketing of various computer applications for healthcare professionals in Canada. The company develops the ZRx Prescriber, a Web application that runs on smart phones, wireless devices or computers allowing physicians to write a bar-coded prescription enabling pharmacists to access and retrieve script information online. It builds and operates e-Pic Communication Network, a clinical information exchange platform between physicians and various other stakeholders of the healthcare sector, such as pharmacists, specialists, pharmaceutical corporations, laboratories, specialized clinics, employers, and others. The company also offers PraxisLab pharmacy management software, which enhances various aspects of the prescription filling process and pharmacists patient file management. It serves physicians, pharmacists, patients, pharmaceutical companies, and private labs. ZoomMed Inc. was incorporated in 2005 and is hea dquartered in Brossard, Canada.

5 Best Small Cap Stocks To Own For 2014

Small cap stocks Derma Sciences Inc (NASDAQ: DSCI), Oculus Innovative Sciences, Inc (NASDAQ: OCLS)�and Arch Therapeutics Inc (OTCBB: ARTH) specialize or have a focus on wound care���a medical problem that has plagued mankind since the dawn of time. After all and think back to our Civil War when disease along with infections resulting from improper wound care probably killed more soldiers than actual battles. Even today, infection after surgery or after receiving a wound or injury of any kind is still a constant threat. And then there is the scaring that can result from any sort of invasive surgery or injury. With those thoughts in mind, here are three small cap wound care stocks trying address these problems:

Derma Sciences Inc.�A specialty medical device / pharmaceutical company focused on wound care, small cap Derma Sciences�is a fully integrated manufacturer, marketer and supplier of a complete line of products for wound and skin care in the following categories: Advanced Wound Care, Traditional Wound Care, Burn Care, Skin Care and Bathing, Specialty Securement and Closure Devices, and First Aid. The company has two wholly owned and operated manufacturing facilities in Toronto and China plus it offers�contract manufacturing services for OEM or private label products. Back in early June, Derma Sciences�reported positive results from a Phase 1 diabetic foot ulcer study. Otherwise and back in May, Derma Sciences reported that revenue rose to $18.8 million from $15.3 million while its net loss grew from $2.5 million to $6.3 million year over year as sales of traditional and advanced wound care products improved, but the company spent more to promote its advanced wound care products while�research costs grew because it started treating patients in two late-stage trials of a treatment for diabetic foot ulcers. On Wednesday, Derma Sciences�rose 7.22% on unusually high trading volume to $15 (DSCI has a 52 week trading range of $9.10 to $15.45 a share) for a market cap of $254.65 million plus the stock is up 39.5% since the start of the year, up 50.7% over the past year and up 158.6% over the past five years.

5 Best Small Cap Stocks To Own For 2014: FuelCell Energy Inc.(FCEL)

FuelCell Energy, Inc., together with its subsidiaries, engages in the development, manufacturing, and sale of high temperature fuel cells for clean electric power generation primarily in South Korea, the United States, Germany, Canada, and Japan. The company offers proprietary carbonate Direct FuelCell Power Plants that electrochemically produce electricity from hydrocarbon fuels, such as natural gas and biogas. Its fuel cells operate on a range of hydrocarbon fuels, including natural gas, renewable biogas, propane, methanol, coal gas, and coal mine methane. The company also develops carbonate fuel cells, planar solid oxide fuel cell technology, and other fuel cell technologies. It provides its products to universities; manufacturers; mission critical institutions, such as correction facilities and government installations; hotels; and natural gas letdown stations, as well as to customers who use renewable biogas for fuel, including municipal water treatment facilities, br eweries, and food processors. The company was founded in 1969 and is headquartered in Danbury, Connecticut.

5 Best Small Cap Stocks To Own For 2014: KongZhong Corporation(KONG)

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

Hot Penny Stocks To Invest In 2014: Petroquest Energy Inc(PQ)

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

5 Best Small Cap Stocks To Own For 2014: InterDigital Inc.(IDCC)

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

Advisors' Opinion:

• [By CRWE]

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

5 Best Small Cap Stocks To Own For 2014: Achillion Pharmaceuticals Inc.(ACHN)

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

Top 10 Warren Buffett Stocks To Own For 2014

The following video is from Wednesday's installment of The Motley Fool's daily Financials show, in which analysts Matt Koppenheffer and David Hanson highlight for investors the most important stock news from the financial sector.

An article in Financial Times came out suggesting that smaller investment banks, such as Greenhill (NYSE: GHL  ) or Lazard (NYSE: LAZ  ) , might be workplaces that offer more options and flexibility for those pursuing a banking career. Will we start to see the best talent move away from Wall Street's biggest banks to find the true opportunities? In the video, Matt tells us what effect this could have on big banking as a whole.

Many investors are scared about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's�new report. It's free, so click here to access it now.

Top 10 Warren Buffett Stocks To Own For 2014: Bacanora Minerals Ltd (BCN.V)

Bacanora Minerals Ltd. engages in the exploration of mineral properties. It holds certain exploration and development stage borate and other mining claims in the Magdalena and Tubutama regions in the northern Sonora State of Mexico. The company is based in Calgary, Canada.

Top 10 Warren Buffett Stocks To Own For 2014: Vrx Worldwide Inc (VRW.V)

VRX Worldwide Inc., through its subsidiary VRX Studios Inc., provides content production, management, hosting, and licensing services for the online travel industry. It licenses Destination Content, a tool that helps consumers in comparing various destinations to determine their vacation desires; Hotel Content, which addresses the content demands of online travel agencies, as well as those of individual hotels and hotel chains; and Cruise Content that includes interactive maps of participating cruise line's ships along with virtual tours and still images of the staterooms and amenities available. The company also provides custom content solutions. It serves online travel intermediaries, hotels and resorts, cruise lines, and tourism boards. The company was formerly known as Cambridge Ventures Ltd. and changed its name to VRX Worldwide Inc. in December 2000. VRX Worldwide Inc. was founded in 1993 and is headquartered in Vancouver, Canada.

10 Best Clean Energy Stocks To Invest In Right Now: Accuride Corporation New (ACW)

Accuride Corporation, together with its subsidiaries, engages in designing, manufacturing, marketing, and supplying commercial vehicle components in North America. The company offers heavy- and medium-duty steel and aluminum wheels, light truck steel wheels, and military wheels; and wheel-end components and assemblies, such as brake drums, disc wheel hubs, spoke wheels, disc brake rotors, and automatic slack adjusters. It also provides truck body and chassis parts comprising bumpers, fuel tanks, battery boxes and toolboxes, front-end cross members, muffler assemblies, and crown assemblies and components, as well as fenders, exhaust components, sun visors, windshield masks, step assemblies, brackets, fuel tank supports, inner-hood panels, door assemblies, dash panel assemblies, and various other components. In addition, the company offers ductile and gray iron casting of transmission and engine-related components, which comprise flywheels, and transmission and engine-relate d housings and brackets; and ductile and gray iron casting of industrial components, such as flywheels, pump housings, small engine components, and other industrial components. Accuride Corporation markets its products under Accuride, Gunite, Imperial, and Brillion brand names. It serves heavy- and medium-duty truck, and commercial trailer original equipment manufacturers (OEM); and aftermarket suppliers, including OEM dealer networks, wholesale distributors, and aftermarket buying groups. The company was founded in 1986 and is headquartered in Evansville, Indiana.

Top 10 Warren Buffett Stocks To Own For 2014: Canadian Quantum Energy Corpora (CQM.V)

Canadian Quantum Energy Corporation engages in the acquisition, exploration, development, and production of petroleum and natural gas reserves primarily in eastern Canada. It holds interests in 800 gross acres at Turin prospect in southern Alberta; and 17,280 gross acres / 27 sections on the Alexander First Nation lands in central Alberta, as well as in 4 permits covering approximately 174,000 gross acres in the Utica Shale Play located in the St. Lawrence Lowlands, Quebec. The company was incorporated in 1991 and is based in Calgary, Canada.

Top 10 Warren Buffett Stocks To Own For 2014: Xiaoxiao Education Ltd (XXL)

Xiaoxiao Education Limited (Xiaoxiao) is an Australia-based company. The Company is engaged in the provision of pre-school educational services in the Zhejiang Province. As of December 31, 2009, the Company had approximately 4,000 enrolled students and in excess of 4,000 additional children attending extra-curricular programs out of school hours and during holiday periods. In addition, Xiaoxiao has approximately 8,000 students attending short courses at its Hangzhou Binjiang Art Training School. Happy Elegant International Limited is the Company�� wholly owned subsidiary.

Top 10 Warren Buffett Stocks To Own For 2014: First Horizon National Corp (FHN)

First Horizon National Corporation (FHN), incorporated in 1968, is a bank holding company. The Company provides financial services through its subsidiary, First Tennessee Bank National Association (the Bank), and its subsidiaries. The Company�� two brands First Tennessee and FTN Financial provide customers with a range of products and services. First Tennessee provides retail and commercial banking services throughout Tennessee. FTN Financial (FTNF) is engaged in fixed income sales, trading, and strategies for institutional clients in the United States and abroad. FHN has four operating business segments: regional banking, capital markets, corporate, and non-strategic. As of December 31, 2011, the Bank had $16.4 billion in total deposits and $16 billion in total net loans. As of December 31, 2011, the Company�� subsidiaries had over 200 business locations in 17 the United States states, Hong Kong, and Tokyo, excluding off-premises automated teller machines (ATMs). As of December 31, 2011, the Bank had 183 branch locations in four states, which include 172 branches in metropolitan areas of Tennessee; two branches in northwestern Georgia; seven branches in northwestern Mississippi, and two branches in North Carolina. As of December 31, 2011, FTN Financial products and services were offered through 18 offices in total, including 16 offices in 14 states plus an office in each of Hong Kong and Tokyo.

The regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customers in Tennessee and surrounding markets. Regional banking provides investments, financial planning, trust services and asset management, credit card, cash management, and first lien mortgage originations within the Tennessee footprint. In addition, the regional banking segment includes correspondent banking, which provides credit, depository, and other banking related services to other financial institutions.

The capital markets se! gment consists of fixed income sales, trading, and strategies for institutional clients in the United States and abroad, as well as loan sales, portfolio advisory, and derivative sales. The corporate segment consists of gains on the extinguishment of debt, unallocated corporate expenses, expense on subordinated debt issuances and preferred stock, bank-owned life insurance, unallocated interest income associated with excess equity, net impact of raising incremental capital, revenue and expense associated with deferred compensation plans, funds management, low income housing investment activities, and charges related to restructuring, repositioning, and efficiency. The non-strategic segment consists of the wind-down national consumer lending activities, legacy mortgage banking elements, including servicing fees, and the associated ancillary revenues and expenses related to these businesses. Non-strategic also includes the wind-down trust preferred loan portfolio and exited businesses along with the associated restructuring, repositioning, and efficiency charges.

As of December 31, 2011, the Company provided services through its subsidiaries, which include general banking services for consumers, businesses, financial institutions, and governments; through FTN Financial fixed income sales and trading, underwriting of bank, loan sales, advisory services and derivative sales; discount brokerage and full-service brokerage; correspondent banking; transaction processing, such as nationwide check clearing services and remittance processing; trust, fiduciary, and agency services; credit card products; equipment finance; investment and financial advisory services; mutual fund sales as agent; retail insurance sales as agent, and mortgage banking services.

As of December 31, 2011, the commercial, financial, and industrial (C&I) portfolio was eight billion dollars, and is consisted of loans used for general business purposes, and consisted of relationship customers in Tennessee and certain n! eighborin! g states, which are managed within the regional bank. Products include working capital lines of credit, term loan financing of owner-occupied real estate and fixed assets, and trade credit enhancement through letters of credit. As of December 31, 2011, the unpaid principal balance (UPB) of trust preferred loans totaled $447.2 million with the UPB of other bank-related loans totaling approximately $161.8 million. The commercial real estate portfolio includes both financings for commercial construction and non-construction loans. This portfolio is segregated between income commercial real estate (CRE) loans which contain loans, lines, and letters of credit to commercial real estate developers for the construction and mini- permanent financing of income-producing real estate, and residential CRE loans. The residential CRE portfolio includes loans to residential builders and developers for the purpose of constructing single-family detached homes, condominiums, and town homes. As of December 31, 2011, the residential CRE portfolio was $.1 billion. As of December 31, 2011, the consumer real estate portfolio was $5.3 billion, and is composed of home equity lines and installment loans. As of December 31, 2011, the credit card and other portfolios were $.3 billion, and primarily include credit card receivables, automobile loans, and over-the-counter (OTC) construction loans and other consumer related credits.

FHN�� investment portfolio consists of debt securities, including government agency issued mortgage-backed securities (MBS) and government agency issued collateralized mortgage obligations (CMO). During the year ended December 31, 2011, Government agency issued MBS and CMO, and other agencies averaged $2.9 billion. During 2011, the United States treasury securities and municipal bonds averaged $79.5 million. During 2011, investments in equity securities averaged $222.3 million.

During 2011, short-term funds (certificates of deposit greater than $100,000, federal funds purchased (! FFP), sec! urities sold under agreements to repurchase, trading liabilities, and other short-term borrowings) averaged $3.6 billion. During 2011, other borrowings increased to $.3 billion. Term borrowings include senior and subordinated borrowings and advances with original maturities greater than one year. During 2011, average term borrowings averaged $2.6 billion.

The Company competes with Regions Bank, SunTrust Bank, Wells Fargo Bank N.A., Bank of America N.A., and Pinnacle National Bank.

Top 10 Warren Buffett Stocks To Own For 2014: Tate & Lyle(TATE.L)

Tate & Lyle PLC provides ingredients and solutions to the food, beverage, and other industries worldwide. It operates through two units, Speciality Food Ingredients and Bulk Ingredients. The Speciality Food Ingredients unit offers starch-based speciality ingredients, including corn-based speciality starches, sweeteners, and fibres; no calorie sweeteners, including SPLENDA Sucralose; and Food Systems, which provides blended ingredient solutions. The Bulk Ingredients unit provides corn-based bulk sweeteners, industrial starches, and fermentation products primarily acidulants. The company offers its products primarily in Europe, the Middle East, Africa, the Asia Pacific, and the Americas. Tate & Lyle PLC is headquartered in London, the United Kingdom.

Top 10 Warren Buffett Stocks To Own For 2014: Groundstar Resources Limited (GSA.V)

Groundstar Resources Limited, a junior oil and gas company, engages in the exploration, development, and production of oil and gas properties in the Middle East, North Africa, and South America. The company has interests in the West Kom Ombo Block that is located in Upper Egypt; the West Esh El Mallaha Block, which is located in the Gulf of Suez Basin; and the Qara Dagh Block that is located in the Sulaymaniyah governorate of the Federal Region of Kurdistan, Iraq. Groundstar Resources Limited is headquartered in Calgary, Canada.

Top 10 Warren Buffett Stocks To Own For 2014: Nucor Corporation(NUE)

Nucor Corporation, together with its subsidiaries, engages in the manufacture and sale of steel and steel products in North America and internationally. It operates through three segments: Steel Mills, Steel Products, and Raw Materials. The Steel Mills segment produces hot and cold-rolled sheet steel; plate steel; structural steel comprising wide-flange beams, beam blanks, and sheet piling; and bar steel, such as blooms, billets, concrete reinforcing bar, merchant bar, and special bar quality products. The Steel Products segment offers steel joists and joist girders, steel deck, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, metal building systems, light gauge steel framing, steel grating and expanded metal, and wire and wire mesh products. The Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, hot briquetted iron, and DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap metal products. The company?s operations also include various international trading companies that buy and sell steel and steel products. It sells its hot-rolled steel and cold-rolled steel to steel service centers, fabricators, and manufacturers; steel joists and joist girders, and steel deck to general contractors and fabricators; and cold finished steel and steel fasteners to distributors and manufacturers. The company?s products are used by contractors in constructing highways, bridges, reservoirs, utilities, hospitals, schools, airports, stadiums, and high-rise buildings. Nucor Corporation was founded in 1940 and is based in Charlotte, North Carolina.

Advisors' Opinion:

• [By Dividend]

  Nucor (NUE) has a market capitalization of $14.83 billion. The company employs 22,200 people, generates revenue of $19.429 billion and has a net income of $593.13 million. Nucor�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.665 billion. The EBITDA margin is 8.57 percent (the operating margin is 4.39 percent and the net profit margin 3.05 percent).

Top 10 Warren Buffett Stocks To Own For 2014: TICC Capital Corp.(TICC)

TICC Capital Corp., a business development company, operates as a closed-end, non-diversified management investment company. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, and common stock. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. The firm invests between $5 million and $30 million per transaction. It seeks to exit its investments within 7 years. It serves as the investment adviser to TICC. The company was formerly known as Technology Investment Capital Corp. and changed its name to TICC Capital Corp. in December 2007. TICC Capital Corp. was founded in 2003 and is headquartered in Greenwich, Connecticut.

The 8 Groups Capitalism Forgot: Holes in the Social Safety Net

Getty Images For the historically minded, the political battles of the last few years may have induced an especially vertiginous bout of deja vu. After all, many of the big debates currently roiling our government -- including those over the minimum wage, health care, college tuition and unemployment -- are nothing new. For decades, politicians and pundits have hashed over these topics, arguing over the appropriate breadth and depth of America's social safety net. On Salon, Paul Buchheit offers an interesting rundown of government policies that hurt children, students, the elderly, wage earners, women, minorities, the sick and disabled, and the homeless -- a collection of constituencies that Buchheit calls "the eight biggest victims of America's predatory capitalism." Very succinctly, but with a great deal of solid evidence, he lays out his argument that, over the past few decades, the United States has de-invested from these groups ... with appalling results. There's a lot of room to disagree with Buchheit. Among other things, his categories have a great deal of overlap, and one could argue that he cherry-picks a great deal of his evidence. On the other hand, it's also hard to ignore America's recent attempts to balance the budget by slashing holes in the social safety net. Buchheit's article is a reminder that governmental "savings" rarely come without a cost -- and that the ones left holding the bill are often the people who have the most to lose.

Buy Jabil Circuit Ahead of Earnings

NEW YORK (TheStreet) -- Jabil Circuit (JBL), which will report fiscal fourth-quarter results on Wednesday, still seems misunderstood.

Jabil, which has (among others) Apple (AAPL) and Cisco (CSCO) as very important customers, is without a doubt one of the best brands in the electronics manufacturing service (EMS) business. But the company has been working over the past couple of years to branch out of that business and into what it calls diversified manufacturing service, or DMS.

On many levels, the fact the company wants to build its capabilities in this new area makes plenty of sense, especially considering Jabil can then become an even more important supplier to Apple. The thing is, however, this transition has gone on much longer than investors expected. Therefore, with seemingly very little progress in the company's changeover, the stock had not gone anywhere for almost a year.

Back in June I told you that shares of Jabil, which at the time were trading at around $19, were too cheap to ignore. In that article , I pointed out the stock could reach the range of $25 to $27 per share, assuming that Jabil could deliver modest, free-cash-flow growth and 4% to 6% revenue growth. Considering that Jabil was coming off of a very disappointing quarter, my optimism wasn't well received. However, I will admit: It certainly didn't help the company missed third-quarter revenue estimates -- let me just get that out of the way. The fact that management issued lower-than-expected guidance roughly 2% shy of expectations was a 1-2-punch tough to overcome. Even so, since that article shares of Jabil have advanced by as much as 22.5%, reaching a high of $24.32 two weeks ago. Now, I'm not here to toot my own horn nor suggest that I had any special insight as to the company's future plans. After all, the stock still has slightly less than 3% higher to go before reaching the low end of my $25 target. What I want to clue you in on is why I was so confident three months ago and why I still believe the stock will reach the high end of my $27 target.

I didn't blame investors for their cynicism after the June quarter. But there was, nonetheless, an exaggeration with June's results. While it's true the company's revenue miss was a letdown, it's also true that, by virtue of Jabil's 5.1% year-over-year revenue increase, Jabil's results were nonetheless within management's prior stated range of $4.3 billion to 4.5 billion. Not to mention, on a sequential basis, revenue inched up 1.1%.

Too much was also being made on the less-than-stellar results of the DMS business, which declined 4% year over year. But, as noted, this is a part of the transition management has been working to build. To that end, some struggles are expected. But the company more than made up for this deficit in areas like High Velocity, which jumped 23% year over year and beat prior expectation by 10%.

Along the same lines, Enterprise & Infrastructure revenue, which accounts for 31% of total revenue, advanced 4% year over year. What's more, the company managed to grow gross margin by 10 basis points sequentially, while reducing operating expenses by 20 basis points year-over-year and 10 basis points sequentially.

To that end, despite the revenue miss and the uninspiring guidance, there was evidence of a well-managed business -- one that I believe was grossly undervalued. On Wednesday, following the company's fiscal fourth-quarter and year-end results, Jabil will reveal if my confidence is justified. The Street will be looking for 54 cents in earnings per share, or revenue of $4.53 billion, which represents 4.5% year-over-year revenue growth. To the extent that Jabil can beat the Street's revenue estimates and show better improvement in the DMS segment, management will solidify the company's course. So although I don't want to overstate the importance of one reporting period, this is the first time in almost a year that this stock has shown this level of confidence. With strong growth momentum, I don't see anything preventing the stock from reaching $27. At the time of publication, the author held shares of Apple. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Richard Saintvilus is a co-founder of StockSaints.com where he serves as CEO and editor-in-chief. After 20 years in the IT industry, including 5 years as a high school computer teacher, Saintvilus decided his second act would be as a stock analyst - bringing logic from an investor's point of view. His goal is to remove the complicated aspect of investing and present it to readers in a way that makes sense. His background in engineering has provided him with strong analytical skills. That, along with 15 years of trading and investing, has given him the tools needed to assess equities and appraise value. Richard is a Warren Buffett disciple who bases investment decisions on the quality of a company's management, growth aspects, return on equity, and price-to-earnings ratio. His work has been featured on CNBC, Yahoo! Finance, MSN Money, Forbes, Motley Fool and numerous other outlets.

Microsoft Paying for Apple's Next Product Cycle

NEW YORK (TheStreet) -- Microsoft (MSFT) recently announced that it will pay at least $200 in in-store credit for an iPad trade-in. While the stipulations vary, it just goes to show that Apple (AAPL) has such a tight grip on the tablet market, competitors are willing to pay for its customers, instead of winning them over the old-fashioned way.

By offering $200, many consumers that have the older iPad models, may be willing to give Microsoft's Surface tablet a shot. [Read: Google's Android Tablets: The Achilles Heel]

However, it may be easy to forget that the Surface has not exactly been a successful tablet thus far. In July it was revealed that Microsoft would be taking a $900 million write-off on its Surface RT inventory. In other words, the consumers aren't really fans.

Now, those same consumers that weren't buying the Surface -- and were instead buying iPads -- can get paid to give Microsoft a second chance. But is that really a good idea, ahead of Apple's impending iPad refresh? Of course not. While there was plenty of hype leading up to the recent iPhone event on Sept. 10, the potentially upcoming iPad event later this fall is, for the most part, being overlooked. While some may still be seething over Apple's seemingly sluggish response to bring new products to the market, it would be a lie to say the new iPhones weren't pretty awesome. They're fast, sleek, sexy and powerful. With fingerprint technology and a 64-bit processor, it's something the market's never seen before. The iPads, I can imagine, won't be any less thrilling. On top of all the new gizmos and technologies is an improved operating system. I think this is actually very important. [Read: Can Gen Y Shake Its Bad Rap at Work?] By creating iOS 7 and having it integrated among all of its mobile devices, Apple is entrenching its users even deeper into its lucrative and enticing ecosystem. When I write an article on my iMac, I can quickly find it on my iPad or iPhone via iCloud. When I want to listen to a song or look at a picture, the iCloud makes it all that much easier to share my own information with myself, however silly that may sound.

But back to my main point: Microsoft is going to drive post-iPad customers willing to try something new, right back into Apple's arms.

By offering the trade-in credit, some open-minded individuals will likely give the Surface a shot, acknowledging that their iPad is feeling a little dated. Trying a non-iOS product and attempting to integrate it into their iOS lives will not likely be a pleasant experience. [Read: US Airways' Biggest Union Wants Contracts Before It Backs Merger]

I'm not saying this as an Apple "fan boy" or whatever some will call it -- I'm sure I'll hear it in the comments section. Surely, some who make the switch will ultimately stay with Microsoft. That's inevitable. But the obvious fact remains: Microsoft had to write down nearly $1 billion worth of its old tablets because they couldn't sell them!

Now, they're paying people to give it shot, an act that will likely end as bad as its first attempt with the Surface. Perhaps even worse. People want premium. People want the best. Apple continues to let the rest of tech slug it out for the low-cost marketshare, while many consumers continue to crave the iPad. Now that it's offering iWork and iLife for free, it gives consumers an even bigger reason to crave the ecosystem. Everything ties together so easily. Those open-minded enough to give the idea of switching a chance, will find themselves dumping their Microsoft tablets just in time to start buying the new iPads. [Read: TV Consolidation Will Only Accelerate, Moody's Says] Microsoft got it wrong the first time, what could have changed? It will be interesting to see how much it writes down next year on the Surface 2. At the time of publication the author was long shares of AAPL. Follow @BretKenwell This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

8 Buy-Rated Retail-Wholesale Stocks Under $10

NEW YORK (TheStreet) -- The retail-wholesale sector may be 24.9% overvalued according to www.ValuEngine.com, but this sector of 360 companies has 80% of the stocks rated buy. With an overweight sector rating I decided to profile nine buy-rated stocks in the retail-wholesale sector that are trading below $10 a share.

All nine stocks profiled today are overvalued, six by more than 40%. Only one is lower in price over the last 12 months, while the others are up between 22.4% and 227.7%. Seven of nine are above their 200-day simple moving average, which reflects the risk of reversion to the mean. As you will observe one of the stocks in today's table ended above $10 on Tuesday and was downgraded to hold from buy.

Reading the Table OV/UN Valued: Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine. VE Rating: A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy. Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage. Forecast 1-Year Return: Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months. Value Level: Price at which to enter a GTC limit order to buy on weakness. The letters mean; W-weekly, M-monthly, Q-quarterly, S-semiannual and A-annual. Pivot: A level between a value level and risky level that should be a magnet during the time frame noted. Risky Level: Price at which to enter a GTC limit order to sell on strength. Casual apparel retailer Aeropostale (ARO) ($10.17) had been above $10 a share until Aug. 22 when they missed EPS estimates by 10 cents reporting a loss of 34 cents a share. The stock traded as low as $7.78 on Sep. 4. On Tuesday private equity firm Sycamore Partners purchased an 8% stake in the retailer and the stock quickly moved back above $10 to a day's high at $10.47. This puts the stock within the price gap between the Aug. 22 low of $10.88 and the Aug. 23 high at $9.55. This morning the stock has been downgraded to hold from buy. My weekly value level is $7.61 with a quarterly risky level at $12.11.

Family-style restaurant chain Denny's (DENN) ($6.22) set a new multi-year high at $6.25 on Monday. Each time this stock dropped to its 200-day SMA, now at $5.57 this key support held; on June 24 at $5.30, on July 30 at $5.40 and on Aug. 28 at $5.50. My quarterly value level is $5.52 with a semiannual pivot at $5.97 and monthly risky level at $6.40.

Fitness machines maker Nautilus (NLS) ($7.21) approached $10 a share on July 15 then traded as low as $6.15 on Aug. 12 holding its 200-day SMA, then at $6.22. Today the stock is between its 200-day SMA at $6.67 and its 50-day SMA at $7.63. My semiannual value level is $6.27 with a quarterly pivot at $6.93 and monthly risky level at $10.58.

Women's fashion retailer New York & Co (NWY) ($5.46) fell from $6.87 on July 11 to $4.64 into Sept. 10 but ended that day above its 200-day SMA at $4.76. Today the stock is between its 200-day SMA at $4.80 and its 50-day SMA at $5.81. My weekly value level is $4.41 with a semiannual pivot at $5.49 and semiannual risky level at $5.53.

Office supply retailer Office Depot (ODP) ($4.31) held its 200-day SMA at $3.94 on Aug. 21. The stock is on the cusp of its 50-day SMA at $4.29. My weekly value level is $4.22 with a monthly risky level at $4.97. Drugstore chain Rite Aid (RAD) ($3.70) traded to a multi-year high at $3.75 on Sept. 11 with the 50-day SMA at $3.25. Weakness so far this yea has held the 50-day going all the way back to April 5 when the 50-day SMA was $1.71. My semiannual value level is $2.60 with a weekly pivot at $3.76 and monthly risky level at $3.86. Wholesale food and grocery distributor Supervalu (SVU) ($7.70) traded to a 2013 high at $8.26 on July 18 and has been trading back and forth around its 50-day SMA at $7.50 since Aug. 20. My semiannual value level is $2.78 with a weekly pivot at $7.78 and monthly risky level at $9.48.

The operator of travel service centers catering to truckers along the interstate TravelCenters of America (TA) ($8.00) has been a focus company of mine since I frequently travel on I75 and I95 between Tampa Bay, Fla., and the New York area. This stock was above $10 until Aug. 6 following disappointing earnings. After trading as low as $7.35 on Aug. 27 the stock failed at its 200-day SMA at $8.55 on Sep. 10. My semiannual value level is $7.18 with a quarterly pivot at $8.04 and semiannual risky level at $9.32.

Fast food chain Wendy's (WEN) ($8.54) set a multi-year high at $8.75 on Sept. 16 and is well above its 50-day SMA at $7.48 after holding that support on July 5 at $5.89. My monthly value level is $7.79 with a weekly risky level at $9.01.

At the time of publication the author held no positions in any of the stocks mentioned.

Follow @Suttmeier This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined www.ValuEngine.com in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at RSuttmeier@Gmail.com.

Weak Trade Deficit Brings Opportunity for Oil and Gas Exporters

If you are a shale driller and into fracking, there is a huge opportunity for oil and gas exports after looking at the latest trade data. The latest report on international trade, the trade deficit, came in at -$39.1 billion for the month of July. Bloomberg had a consensus of -$39 billion. Since this report was mostly in-line with expectations, we are not evaluating it for a market moving event. This is opportunity knocking for energy exporters top to bottom.

The July trade deficit did worsen from $34.4 billion in June, which was preliminary reported as $34.2 billion. What took place was that exports were down by 0.6%, but that was on the heels of a 2.2% gain in June. Imports rose by 1.6% in July, way up from the 2.2% drop in the June report.

After looking through the reports on this, Bloomberg pointed out that this worse trade deficit was primarily due to the nonpetroleum goods deficit, and that grew to $38.7 billion in July from $35.0 billion in June. We looked through the data and the petroleum deficit increased to $18.7 billion in July, versus $17.5 billion in June.

The services surplus also fell only marginally to $19.4 billion from $19.5 billion. We would point out that the international trade balance has remained relatively low because of sluggish import demand. Slow global growth, particularly from Europe and top emerging markets running way under capacity, are acting to curb demand for U.S. exports at a time when the currency remains somewhat elevated.

So why is this a huge opportunity? The United States is in the position to continue its energy boom for another decade or longer. Earlier this year, the Eagle Ford Shale was called an $89 billion annual impact ahead, and that is just one of the booming shale regions. The EIA even has gone on record to forecast that 2 million jobs could be created from this boom.

444% Increases - Billionaires on Gold Mines

Here's a look at three gold mining companies on a 52-week low. The companies selected are more than 65% off a 52-week high.

Billionaires can afford to hold these mining companies for five years of losses without a sting to the wallet and the sheer number of billionaires holding these gold companies is a compelling-enough statement. But in second quarter trading, two Guru investors upped their stakes in two of today's featured companies more than 444%, making us wonder: Is it hope, is it seasoned neutrality, or is there reason to believe these companies could be on the verge of a big pay day?

Industry Sector: Metals and Mining

The metals & mining sector currently has 30 companies out of 174 on a 52-week low. The low ratio is 0.17.

Anglogold Ashanti Limited (AU)

Down 65% over 12 months, Anglogold Ashanti Limited has a market cap of $4.85 billion, and trades with a P/E of 8.10.

The current share price is around $12.70, or 65.6% off the 52-week high of $36.93. The yield is 2.10%.

Anglogold Ashanti Limited is a gold exploration, mining and marketing company with a portfolio of operations and projects on four continents. The company is headquartered in Johannesburg, South Africa, and has 21 operations in 10 countries. Major development projects include: Tropicana located in Australia; Kibali in the Democratic Republic of the Congo (DRC) and La Colosa in Colombia. The company's exploration programs extend to 12 countries, in both established and new gold-producing regions.

The company reported financial results for the three months ended June 30, 2013 with production of 935,000 oz., as a 4% increase over production in the first quarter of 2013. The company's adjusted gross profit for the quarter was $231 million compared to $$658 million year-over-year.

Guru Action: As of June 30, 2013, there are eleven guru stakeholders and insider buying.

The top Guru stakeholder is John Paulson who reduced his position by 1.13%, selling 319,450 s! hares at an average price of $18.03 per share, for a loss of 29.6%. He currently holds 27,935,500 shares or 7.25% of shares outstanding. The holding is 2.8% of his total assets managed.

The biggest AU news of second quarter is that Jean-Marie Eveillard's First Eagle Investment Management increased its position by 444.51%, buying 21,981,524 shares at an average price of $18.03 per share for a loss of 29.6%.

Track share pricing, revenue and net income:

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Richmont Mines Inc. (RIC)

Down 70% over 12 months, Richmont Mines Inc. has a market cap of $56.23 billion, and trades with a P/B of 0.60.

The current share price is around $1.42, or 74.2% off the 52-week high of $5.50. The yield is 0.00%.

First incorporated in Quebec in 1981 under the name Resources Minieres Rouyn Inc., Richmont Mines Inc. is engaged in the acquisition, exploration, operation, financing, and development of mineral properties. The company began its exploration activities in northwestern Quebec in the spring of 1984.

The company reported financial results (reported in Canadian currency, unless otherwise noted) for the three months ended June 30, 2013 with: Revenues for the second quarter of 2013 at $17.8 million, down 25% from revenues of $23.7 million in the second quarter of 2012, reflecting a 12% decrease in the number of gold ounces sold, and a 14% decrease in the average gold price obtained in Canadian dollars. A total of 12,826 ounces of gold were sold at an average price of $1,389 ($1,367 USD) per ounce in the current quarter, versus gold sales of 14,611 ounces and an average realized sales price of $1,617 ($1,618USD) per ounce in the comparable period last year. The reported a net loss of $1.1 million, or $0.03 per share, in the second quarter of 2013, versus a net loss from continuing operations of $2.9 million, or $0.09 per share in the second quarter of 2012, according to a compa! ny press ! release.

Guru Action: As of June 30, 2013, there are three guru stakeholders and active insider trading.

The top Guru stakeholder is Jim Simons who increased his position by 6.81%, buying 136,100 shares at an average price of $1.93 per share, making a loss of 26.4%. He currently holds 2,135,100 shares or 5.39% of shares outstanding.

In five years of holding there is not one gaining quarter. Simons has averaged a loss of 77% on 2,769,700 shares bought at an average price of $6.17 per share. He also averaged a loss of 63% on 634,600 shares sold at an average price of $3.79 per share.

Charles Brandes made a new buy as of June 30, 2013. He bought 13,696 shares at an average price of $1.93 for a loss of 26.4%.

Track share pricing, revenue and net income:

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Buenaventura Mining Company Inc. (BVN)

Down 70% over 12 months, Buenaventura Mining Company Inc. has a market cap of $2.95 billion, and trades with a P/E of 6.70.

The current share price is around $11.65, or 70.9% off the 52-week high of $40.09. The yield is 4.13%.

Located in Peru, Buenaventura Mining Company Inc. is a publicly-traded precious metals company, mainly producing refined gold and silver, either as dore bars or concentrates. The company is engaged in the exploration, mining and processing of gold, silver and, to a lesser extent, other metals such as lead, zinc and copper as concentrates.

The company reported financial results (in U.S. currency) for the three months ended June 30, 2013 with a net income of $19 million, 88% lower than $153.2 million for the same quarter in the previous year. EBITDA was reported as $40.3 million, 65% lower than $114.6 million in the same quarter a year ago, according to a company press release.

Guru Action: As of June 30, 2013, there are four guru stakeholders and no insiders trading.

The top Guru stakeholder Jeremy Grantham! increase! d his position by 40.36%, buying 1,689,982 shares at an average price of $19.50 per share, for a loss of 40.3%. He currently holds 5,877,252 shares or 2.31% of shares outstanding. In five years of holding, his trading history shows every quarter with a double-digit loss.

Guru Jim Simons increased his position by 444.21% in the second quarter, buying 1,323,300 shares at an average price of $19.5 for a 40.3% loss.

Over five years, he has averaged a loss of 60% on 3,320,900 shares bought at an average price of $29.09 per share. He has averaged a loss of 55% on 5,687,500 shares sold at an average price of $26.05 per share.

Track share pricing, revenue and net income:

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Vodafone’s $10.2 Billion Cable Bid Wins Shareholder Support

Vodafone Group Plc (VOD)'s 7.7 billion-euro ($10.2 billion) bid for Kabel Deutschland Holding AG (KD8) cleared a major hurdle by winning the backing of at least 75 percent of the German company's shareholders.

The minimum threshold for the takeover to go through was met by the Sept. 11 deadline, Newbury, England-based Vodafone said yesterday, without giving detailed results of the tender. Kabel Deutschland investors who haven't given up their stock will get a second chance, from Sept. 17 to Sept. 30.

Kabel Deutschland is a key part of Vodafone's expansion strategy as the carrier looks for ways to boost revenue and lock in customers with Internet and television offers in addition to wireless service. Kabel Deutschland is the biggest cable company in Germany, Vodafone's largest market, and had drawn a rival bid from John Malone's Liberty Global Plc. (LBTYA)

The acquisition had been threatened by investors who held on to their shares in anticipation of getting a bigger payout. Elliott Management Corp., the company run by billionaire Paul Singer, accumulated shares to become Kabel Deutschland's biggest stakeholder with a 10.9 percent holding in the days leading up to the deadline.

The hedge fund wanted to take advantage of a German law that often requires a buyer that gets at least 75 percent of a target's shares to offer more money to hold-outs, a person familiar with the matter has said, asking not to be identified discussing private deliberations.

Regulatory Scrutiny

Kabel Deutschland rose 3.5 percent to 89.40 euros at 9:08 a.m. in Frankfurt. Vodafone's 87-euro-per-share offer price includes a 2.50-euro dividend payment. Vodafone added 0.3 percent to 210.65 pence on the London exchange.

Vodafone said it plans to publish detailed results of the tender on Sept. 16. It anticipates an initial regulatory review by the European Commission to be completed by Sept. 20.

The deal is wrapping up as Vodafone agreed this month to sell its most valuable asset, its 45 percent stake in U.S. mobile-phone company Verizon Wireless, for $130 billion to Verizon Communications Inc. It's the biggest M&A transaction in more than a decade and puts Vodafone's center of gravity firmly in Europe.

Vodafone will have about $30 billion in cash left over from the Verizon sale to reduce debt, make acquisitions and build its broadband Internet and faster, fourth-generation mobile networks. Project Spring, as the effort has been named, will add about $10 billion to local units' budgets over the next three years.

Are Target Investors Aiming Too High?

With shares of Target Corp. (NYSE:TGT) trading at around $70.17, is TGT an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock's Movement

As most investors already know, Target mostly blamed the weather for its mixed to disappointing Q1 performance. In most cases, a company blaming the weather is absurd and nothing more than an excuse. If the weather is an issue, then the company complaining should get some products on the shelves that match the current environment. However, Target's excuse is at least somewhat justifiable because the weather seemed to affect the majority of the industry opposed to just Target. Seasonal items such as gardening equipment and spring apparel didn't sell as well as anticipated. High-priced electronics have also been performing poorly, but this has been more a long-term problem, and it might serve as a warning sign that the consumer isn't as strong as advertised, but that's a story for another time.

Target saw 1.0 percent sales growth year-over-year, but sales for stores open at least one year declined 0.6 percent. Therefore, this is one of those stories that are a bit challenging to figure out. Then again, those stories are the most fun. It's possible that Target is provided the answer by lowering its full year earnings expectations to $4.70-$4.90 from $4.85-$5.05. However, if that's the case, then how come the stock hasn't been hit? It's likely because savvy investors realize that uncooperative weather is always a temporary problem, and that lowered expectations have the potential to lead to future upside surprises. On the other hand, the consumer isn't exactly strong at the moment, so there is still risk.

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Optimists will say that Target attracts consumers looking for a bargain, which makes a weak consumer less of a concern. Pessimists will say that Wal-Mart Stores Inc. (NYSE:WMT) and dollar stores are better options for those looking for bargains. The reason Target has been such a tug-of-war story is because both camps have valid points. Yes, Target is a good option for budget-conscious consumers, and yes, there are better options out there. A lot depends on location (as always).

Speaking of location, Target is in attack mode in Canada. It opened 24 stores in Q1, and it plans on opening 124 stores total in 2013. This will lead to a short-term cost that will hurt earnings, but it should be a winning investment over the long haul.

City Targets should also help growth because these stores will simply attract more consumers thanks to convenience.

As far as online goes, digital sales growth is in the high teens, but according to Alexa.com stats, the past three months haven't been that impressive. Over that time frame, pageviews-per-user has declined 3.71 percent to 5.19, time-on-site has declined 2.0 percent to 4:44, and the bounce rate (only one pageview per visit) has increased 10.0 percent to 29.50 percent. None of these are good numbers, but the latter is the most alarming. Why aren't people staying on the page? There has to be a problem somewhere. That said, a bounce rate of 29.50 percent is still low, which is good.

Target's REDcard has been a success so far. A REDcard gives shoppers a 5.0 percent discount. Who wouldn't want that? In Q1 2012, 12 percent of Target transactions were made using a REDcard. In Q1 2013, 17 percent of transactions were made using a REDcard. While the 5.0 percent discount sounds like a negative, it's driving more traffic to the store. That said, how many times have you been to a Target and been made aware of a REDcard? If you're like most people, then this has never happened. Target would have more potential with the REDcard if it was more focused on exposure – without annoying shoppers.

For those who don't already know, Target is now selling wedding gowns. This is a very interesting play by Target. It might work, and it might not, but if it works, it has some serious potential. The reason for that is because the average expected price paid for a wedding gown this year will be $1,228, and Target wedding gowns begin at only $69.99. In an economy where the consumer is constantly looking for a bargain, there is potential in this space. The big concern is that most brides won't want to say they got their wedding gown from Target. Target will have to come up with a way to solve this problem.

In regards to valuation, Target is currently trading at 16 times earnings whereas Costco Wholesale Corporation (NASDAQ:COST) is trading at 24 times earnings and Wal-Mart is trading at 15 times earnings. Valuation isn't a factor at the moment. However, it should be noted that Target and Costco aren't as resilient as Wal-Mart in bear markets. For example, Target and Costco declined more than 45 percent in late 2008/early 2009 while Wal-Mart only declined about 20 percent.

Those looking for safety are likely looking for yield as well. Target currently yields 2.10 percent whereas Wal-Mart yields 2.50 percent and Costco yields 1.10 percent.

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The chart below takes a look at some basic fundamentals for Target, Wal-Mart, and Costco.

	TGT	WMT	COST
Trailing P/E	16.49	14.83	23.61
Forward P/E	12.88	12.93	21.58
Profit Margin	3.83%	3.62%	1.94%
ROE	17.29%	23.62%	17.30%
Operating Cash Flow	7.25B	25.05B	N/A
Dividend Yield	2.10%	2.50%	1.10%
Short Position	2.40%	1.70%	1.30%

Let's take a look at some more important numbers prior to forming an opinion on this stock.
T = Technicals Are Strong

Target has been a steady performer for several years. It has underperformed its peers over a three-year time frame, but it’s doubtful that investors are crying.

	1 Month	Year-To-Date	1 Year	3 Year
TGT	0.03%	19.87%	24.63%	41.73%
WMT	-4.49%	11.65%	16.71%	60.92%
COST	-0.25%	11.18%	36.56%	115.7%

At $70.17, Target is trading above its averages.

50-Day SMA	69.86
200-Day SMA	65.17

E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for Target is close to the industry average of 0.70. It might not be as strong as peers, but it’s not a concern, either.

	Debt-To-Equity	Cash	Long-Term Debt
TGT	0.86	1.82B	14.21B
WMT	0.75	8.86B	57.08B
COST	0.46	6.51B	4.94B

E = Earnings Have Been Solid

Earnings and revenue have consistently improved on an annual basis. To see this type of consistency is somewhat rare and always a good sign.

Fiscal Year	2009	2010	2011	2012	2013
Revenue ($) in millions	64,948	65,357	67,390	69,865	73,301
Diluted EPS ($)	2.86	3.30	4.00	4.28	4.52

Looking at the last quarter on a year-over-year basis, revenue improved and earnings declined. Both earnings and revenue declined on a sequential basis. Earnings have been affected by investments that are likely to lead to increased revenue growth in the future.

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Quarter	Apr. 30, 2012	Jul. 31, 2012	Oct. 31, 2012	Jan. 31, 2013	Apr. 30, 2013
Revenue ($) in millions	16,537	16,451	16,929	22,726	16,706
Diluted EPS ($)	1.04	1.06	0.96	1.47	0.77

Now let's take a look at the next page for the Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?

Conclusion

Target has been a long-term winner, and that's not likely to change. However, a significant hit to the stock price is possible if the market suffers a steep correction. The good news is that Target would most likely recover.

Consumer Confidence Far Better Than Prior Warnings Indicated

The market has to be getting more than just confused about what the hell is happening to consumer confidence and consumer sentiment. The Conference Board released its reading on consumer confidence for the month of July, signaling that consumers were slightly more confident. This is in stark contrast to the ghastly consumer sentiment report from the University of Michigan just a week ago. We have argued that the Conference Board’s report is by far a more reliable and accurate report, but the University of Michigan report gets so much attention because it is released a week earlier.

Tuesday’s report from the Conference Board showed that the Consumer Confidence Index increased slightly in August after falling in July. August was at 81.5, versus 81.0 in July. Because of last week’s shoddy sentiment report, expectations were much lower. Bloomberg had the consensus estimate down at 78.0 and the range was at 74.8 to 80.0.

The Conference Board signaled that the Present Situation Index decreased to 70.7 from 73.6. Its Expectations Index rose to 88.7 from 86.0 last month. The cutoff date for the preliminary results was August 15.

If you read through the report, the gain here was really a result of improving short-term expectations. Consumers were moderately more upbeat about business, jobs, income expectations and more. The lagging effect and drag was from a general assessment of current business and labor market conditions being less favorable than a month ago.

Seriously, take a look at how different these reports are. The University of Michigan was a death plunge and these Conference Board results  seem more normal. The Conference Board uses Nielsen and is based on approximately 3,000 completed questionnaires, whereas the University of Michigan comes from a few hundred responses.