Is AOL A Buy?

With shares of AOL (NYSE:AOL) trading around $39, is AOL an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let's analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

AOL is a global Web services company with a range of brands and offerings that intrigue a global audience. The company’s business spans online content, products and services, which it offers to consumers, publishers and advertisers. Its business operations are focused on AOL Properties and Third Party Network. It offers a range of display advertising, including text and banner advertising, mobile, video and rich media advertising, sponsorship of content offerings, and local and classified advertising. Through its broad network, AOL is able to offer content to a large user base. The AOL brand lost its spark several years ago but with recent restructuring, is picking up steam once again. As an increasing number of consumers look for entertainment and information online, companies like AOL stand to see rising profits.

T = Technicals on the Stock Chart are Strong

AOL stock has seen a powerful uptrend since selling off a bit in 2011. The stock is now trading near all-time high prices and shows no imminent signs of slowing. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, AOL is trading slightly above its rising key averages which signal neutral to bullish price action in the near-term.

(Source: Thinkorswim)

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

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	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
AOL Options	48.6%	53%	50%

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

	Put IV Skew	Call IV Skew
May Options	Flat	Average
June Options	Flat	Average

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

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

E = Earnings Are Increasing Quarter-Over-Quarter

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

	2012 Q4	2012 Q3	2012 Q2	2012 Q1
Earnings Growth (Y-O-Y)	84.05%	1200%	254.55%	450%
Revenue Growth (Y-O-Y)	3.94%	0%	-2.05%	-3.99%
Earnings Reaction	7.35%	22.03%	7.23%	3.47%

AOL has seen increasing earnings and revenue figures over most of the last four quarters. From these figures, the markets have been very excited about AOL’s recent earnings announcements.

P = Excellent Relative Performance Versus Peers and Sector

How has AOL stock done relative to its peers, Google (NASDAQ:GOOG), Yahoo! (NASDAQ:YHOO), Microsoft (NASDAQ:MSFT), and sector?

	AOL	Google	Yahoo!	Microsoft	Sector
Year-to-Date Return	30.36%	16.25%	22.66%	22.63%	14.23%

AOL has been a relative performance leader, year-to-date.

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Conclusion

AOL provides informational content and entertainment to a growing user base around the world. The stock has been in a strong uptrend since establishing lows in 2011. In fact, AOL stock is currently trading near all-time high prices. Earnings and revenue figures have been growing over the last four quarters which has made investors very excited. Relative to its peers and sector, AOL has led in year-to-date performance by a wide margin. Look for AOL to OUTPERFORM.

Ask Matt: Do ‘activist shareholders’ cause harm?

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com.

Q: Do "activist shareholders" hurt more than they help?

A: It's been a busy year for activist shareholders. These investors buy stakes in companies and hope to use their bought clout to push for change.

Companies ranging from J.C. Penney to Apple and Microsoft have all been reportedly pushed by activists to make changes to their business models or the way they return cash to shareholders.

The pressure being applied can get so public that these activists often seem to have a bigger influence than they really do. And judging from the results at J.C. Penney, as the retailer continues to struggle, some might question if activists do more harm than good.

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Activists at large, however, still generally aid companies, according to a recent study from Duke University, Harvard Law School and Columbia Business School. After examining more than 2,000 motions by activist shareholders between 1994 and 2007, these researchers found that the companies targeted generally start showing better performance.

The companies showed higher return on assets five years after the time they were targeted by the activists. Additionally, there' s a roughly 6% positive stock price reaction around the period the activists disclose that they're getting involved.

Some suspect that activist shareholders may squeeze out better performance from the targeted companies in the short run, only to hurt future results. But the researchers didn't see any abnormal decreases in the targeted firm's future performance.

Top Biotech Companies To Watch In Right Now

They're demanding. They take risks -- but only calculated ones. And they ask lots of penetrating questions to understand as much as possible before putting a dime on the line. Venture capitalists, or VCs, funded nearly 3,700 deals last year. Many of those deals will fail, but the ones that don't could produce astronomical gains.

Investing in biotech stocks can be fraught with risk, but thinking like a venture capitalist can help increase the odds of success. Here are three VC principles that biotech investors should keep in mind.

1. Look for a disruptive technology that addresses an unmet need
Venture capitalists look for companies that target an unmet need and provide an innovative way to meet that need. The good news for prospective biotech investors is that there are plenty of companies fulfilling that criterion.

Perhaps the most obvious example of addressing an unmet need lies in targeting rare orphan diseases. For example, cystic fibrosis, while widely known, affects only around 30,000 Americans. Although some treatments exist to help improve qualify of life, there is no cure for the disease.

Top Biotech Companies To Watch In Right Now: CEL-SCI Corp (CVM)

CEL-SCI Corporation (CEL-SCI), incorporated on March 22, 1983, is engaged in the business of Multikine cancer therapy; New cold fill manufacturing service to the pharmaceutical industry, and ligand epitope antigen presentation System (LEAPS) technology, with two products, hemagglutinin type 1 and neuraminidase type 1 (H1N1) swine flu treatment for H1N1 hospitalized patients and CEL-2000, a rheumatoid arthritis treatment vaccine.

Multikine

CEL-SCI's Multikine, is being developed for the treatment of cancer. It is a cancer immunotherapy drugs called Combination Immunotherapy because it combines active and passive immunity in one product. It is the only cancer immunotherapy that both kills cancer cells and activates the general immune system to destroy the cancer. Multikine target the tumor micro-metastases for treatment failure. Multikine is also applicable in many other solid tumors.

New Manufacturing Facility

CEL-SCI's facility manufactures Multikine for CEL-SCI's Phase III clinical trial. CEL-SCI offers the use of the facility as a service to pharmaceutical companies and others, particularly those that need to fill and finish their drugs in a cold environment. Fill and finish is the process of filling injectable drugs in a sterile manner.

LEAPS

CEL-SCI's patented T-cell Modulation Process uses heteroconjugates to direct the body to choose a specific immune response. The heteroconjugate technology, referred to as LEAPS, is intended to stimulate the human immune system to fight bacterial, viral and parasitic infections, as well as autoimmune, allergies, transplantation rejection and cancer. Administered like vaccines, LEAPS combines T-cell binding ligands with small, disease associated and peptide antigens.

Using the LEAPS technology, CEL-SCI has created a peptide treatment for H1N1 (swine flu) hospitalized patients. This LEAPS flu treatment is designed to focus on the conserved, non-changing epitopes of the di! fferent strains of Type A Influenza viruses, including swine, avian or bird, and Spanish Influenza. CEL-SCI's LEAPS flu treatment contains epitopes.

Top Biotech Companies To Watch In Right Now: Cell Therapeutics Inc (CTIC)

Cell Therapeutics, Inc. (CTI), incorporated in 1991, develops, acquires and commercializes treatments for cancer. The Company�� research, development, acquisition and in-licensing activities concentrate on identifying and developing new ways to treat cancer. As of December 31, 2011, CTI focused its efforts on Pixuvri (pixantrone dimaleate) (Pixuvri), OPAXIO (paclitaxel poliglumex) (OPAXIO), tosedostat, brostallicin and bisplatinates. As of December 31, 2011, it developed Pixuvri, an anthracycline derivative for the treatment of hematologic malignancies and solid tumors. Another late-stage drug candidate of the Company, OPAXIO, is being studied as a potential maintenance therapy for women with advanced stage ovarian cancer, who achieve a complete remission following first-line therapy with paclitaxel and carboplatin. As of December 31, 2011, it also developed tosedostat in collaboration with Chroma Therapeutics, Ltd. (Chroma). On May 31, 2012, CTI completed its acquisition gaining worldwide rights to S*BIO Pte Ltd.'s (S*BIO) pacritinib.

Pixuvri

As of December 31, 2011, the Company developed Pixuvri, an aza-anthracenedione derivative, for the treatment of non-Hodgkin�� lymphoma (NHL), and various other hematologic malignancies, and solid tumors. Pixuvri was studied in the Company�� EXTEND, or PIX301, clinical trial, which was a phase III single-agent trial of Pixuvri for patients with relapsed, refractory aggressive NHL who received two or more prior therapies and who were sensitive to treatment with anthracyclines. On September 28, 2011, CTI announced that a second independent radiology assessment of response and progression endpoint data from its PIX301 clinical trial of Pixuvri was achieved with statistical significance. The results of the EXTEND trial met its primary endpoint and showed that patients randomized to treatment with Pixuvri achieved a significantly higher rate of confirmed and unconfirmed complete response compared to patients treated with standard chem! otherapy had a significantly increased overall response rate and experienced a statistically significant improvement in median progression free survival. Pixuvri had predictable and manageable toxicities when administered at the proposed dose and schedule in the EXTEND clinical trial in heavily pre-treated patients. In March 2011, the Company initiated the PIX-R trial to study Pixuvri in combination with rituximab in patients with relapsed/refractory diffuse large B-cell lymphoma (DLBCL). Pixuvri has also been studied in patients with HER2-negative metastatic breast cancer who have tumor progression after at least two, but not more than three, prior chemotherapy regimens. In the second quarter of 2010, the NCCTG opened this phase II study for enrollment. The study is closed to accrual and results are expected to be reported by the NCCTG later in 2012.

OPAXIO

OPAXIO is the Company�� biologically-enhanced chemotherapeutic agent that links paclitaxel to a biodegradable polyglutamate polymer, resulting in a new chemical entity. As of December 31, 2011, the Company focused its development of OPAXIO on ovarian, brain, esophageal, head and neck cancer. OPAXIO was designed to improve the delivery of paclitaxel to tumor tissue while protecting normal tissue from toxic side effects. In November 2010, results were presented by the Brown University Oncology Group from a phase II trial of OPAXIO combined with temozolomide (TMZ), and radiotherapy in patients with newly-diagnosed, high-grade gliomas, a type of brain cancer. The trial demonstrated a high rate of complete and partial responses and a high rate of six month progression free survival (PFS). Based on these results, the Brown University Oncology Group has initiated a randomized, multicenter, phase II study of OPAXIO and standard radiotherapy versus TMZ and radiotherapy for newly diagnosed patients with glioblastoma with an active gene termed MGMT that reduces responsiveness to TMZ. A phase I/II study of OPAXIO combined with radi! otherapy ! and cisplatin was initiated by SUNY Upstate Medical University, in patients with locally advanced head and neck cancer.

Tosedostat

In March 2011, the Company entered into a co-development and license agreement with Chroma Therapeutics, Ltd. (Chroma), providing the Company with marketing and co-development rights to Chroma�� drug candidate, tosedostat, in North, Central and South America. Tosedostat is an oral, aminopeptidase inhibitor that has demonstrated anti-tumor responses in blood related cancers and solid tumors in phase I-II clinical trials. Interim results from the phase II OPAL study of tosedostat in elderly patients with relapsed or refractory acute myeloid leukemia (AML) showed that once-daily, oral doses of tosedostat had predictable and manageable toxicities and results demonstrated response rates, including a high-response rate among patients who received prior hypomethylating agents, which are used to treat myelodysplastic syndrome (MDS), a precursor of AML.

Brostallicin

As of December 31, 2011, the Company developed brostallicin through its wholly owned subsidiary, Systems Medicine LLC, which holds rights to use, develop, import and export brostallicin. Brostallicin is a synthetic deoxyribonucleic acid (DNA) minor groove binding agent that has demonstrated anti-tumor activity and a favorable safety profile in clinical trials, in which more than 230 patients have been treated as of December 31, 2011. The Company uses a genomic-based platform to guide the development of brostallicin. A phase II study of brostallicin in relapsed, refractory soft tissue sarcoma met its predefined activity and safety hurdles and resulted in a first-line phase II clinical trial study that was conducted by the European Organization for Research and Treatment of Cancer (EORTC).

The Company competes with Bristol-Myers Squibb Company, Sanofi-Aventis, Pfizer, Roche Group, Genentech, Inc., Astellas Pharma, Eli Lilly and Company, Celgene, Telik, I! nc., TEVA! Pharmaceuticals Industries Ltd. and PharmaMar.

Advisors' Opinion:

• [By Bryan Murphy]

  If you're reading this, then odds are you already know that the last two weeks (not even a full two weeks) have been more fruitful for Cell Therapeutics Inc. (NASDAQ:CTIC) shareholders than the prior two years have been - the stock's up 28% since last Thursday. And, odds are you already know why. The question most of you are asking now is, can CTIC actually keep climbing at this pace, or even keep climbing at any pace? The answer is "yes", though floating that answer almost inherently requires a deeper explanation.

Top 10 Growth Stocks To Buy Right Now: Nektar Therapeutics(NKTR)

Nektar Therapeutics, a clinical-stage biopharmaceutical company, engages in developing a pipeline of drug candidates that utilize its PEGylation and polymer conjugate technology platforms. The company?s product pipeline consists of drug candidates across various therapeutic areas, including oncology, pain, anti-infectives, anti-viral, and immunology. Its research and development activities involve small molecule drugs, peptides, and other potential biologic drug candidates. The company?s proprietary drug candidates in clinical development comprise NKTR-118, a peripheral opioid antagonist, which has completed Phase II clinical trail for the treatment of opioid-induced constipation; BAY41-6551 that has completed Phase II clinical trail to treat gram-negative pneumonias; NKTR-102, a topoisomerase I inhibitor-polymer conjugate, which is in Phase II clinical trail for multiple cancer indications, including breast, ovarian, and colorectal; and NKTR-105 that is in Phase I clinica l trail to treat solid tumors. Its preclinical products consists of NKTR-119 (Opioid/NKTR-118 combinations) for the treatment of pain; NKTR-181 (abuse deterrent, tamper-resistant opioid) to treat pain; NKTR-194 (non-scheduled opioid) for the treatment of mild to moderate pain; NKTR-171 (tricyclic antidepressant) to treat neuropathic pain; and NKTR-140 (protease inhibitor candidate) to treat HIV. The company has collaboration with Bayer Healthcare LLC to develop BAY41-6551 (NKTR-061, Amikacin Inhale), which is an inhaled solution of amikacin, an aminoglycoside antibiotic; and a license agreement with AstraZeneca AB for the development and commercialization of Oral NKTR-118 and NKTR-119. In addition, Nektar Therapeutics has various license, manufacturing, and supply agreements for its technology with biotechnology and pharmaceutical companies, such as Affymax, Amgen, Baxter, Roche, Merck, Pfizer, and UCB Pharma. The company was founded in 1990 and is headquartered in San Franc isco, California.

Advisors' Opinion:

• [By Sean Williams]

  Levadex's approval or rejection could also mean a good or bad day for Nektar Therapeutics (NASDAQ: NKTR  ) , which looks to gain from royalty rights based on its contributions to Levadex's development. While impossible to predict, I'm going to go out on a limb and project an approval for Allergan.

Top Biotech Companies To Watch In Right Now: Cannabis Science Inc (CBIS)

Cannabis Science, Inc., incorporated on May 4, 2007, is a development-stage company. The Company is engaged in the creation of cannabis-based medicines, both with and without psychoactive properties, to treats disease and the symptoms of disease, as well as for general health maintenance. On February 9, 2012, the Company acquired GGECO University, Inc. (GGECO). On March 21, 2012, the Company acquired Cannabis Consulting Inc. (CCI Group).

The Company is engaged in medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products.

Advisors' Opinion:

• [By John Udovich]

  Although its summer, there has been a steady stream of good news about medical marijuana even though important small cap marijuana stocks�Medical Marijuana Inc (OTCMKTS: MJNA) and Cannabis Science Inc (OTCMKTS: CBIS) have been fairly quietly lately while Growlife Inc (OTCBB: PHOT), a more indirect play on the spread of legalized marijuana, has produced�some news for investors:

Top Biotech Companies To Watch In Right Now: Galena Biopharma Inc (GALE.PH)

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

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

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

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

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

Top Biotech Companies To Watch In Right Now: Neurocrine Biosciences Inc.(NBIX)

Neurocrine Biosciences, Inc. engages in the discovery, development, and commercialization of drugs for the treatment of neurological and endocrine-related diseases and disorders in the United States. It develops drugs for endometriosis, stress-related disorders, pain, tardive dyskinesia, uterine fibroids, diabetes, insomnia, and other neurological and endocrine-related diseases and disorders. The company?s products in clinical development include Elagolix, a Phase II drug for endometriosis; Vesicular Monoamine Transporter 2 Inhibitor (VMAT2), a Phase II drug for movement disorders; CRF2 Peptide Agonist, a Phase II drug for cardiovascular diseases; CRF1 Antagonist, a Phase II drug for stress-related disorders; and Elagolix, a Phase II drug for uterine fibroids. Its research programs comprise G Protein-Coupled Receptor 119 (GPR119) for type II diabetes; VMAT2 for schizophrenia; GnRH Antagonists for men?s and women?s health, and oncology; Antiepileptic Drugs for epilepsy, essential tremor, and pain; and G Protein-Coupled Receptors for other conditions. The company has collaborations with GlaxoSmithKline to develop and commercialize CRF antagonists for psychiatric, neurological, and gastrointestinal diseases; Dainippon Sumitomo Pharma Co. Ltd. to develop and commercialize Indiplon in Japan; Abbott International Luxembourg S.�r.l. to develop and commercialize elagolix and GnRH antagonists for women?s and men?s health indications; and Boehringer Ingelheim International GmbH to research, develop, and commercialize small molecule GPR119 agonists for the treatment of type II diabetes and other indications. Neurocrine Biosciences, Inc. was founded in 1992 and is headquartered in San Diego, California.

Advisors' Opinion:

• [By Roberto Pedone]

  Another stock that's starting to trend within range of triggering a major breakout trade is Neurocrine Biosciences (NBIX), which discovers, develops and commercializes drugs for the treatment of neurological and endocrine-related diseases and disorders. This stock has been a hot name with bulls so far in 2013, with shares up 57%.

  If you look at the chart for Neurocrine Biosciences, you'll notice that this stock recently gapped down sharply from $16.74 to below $11.50 a share with heavy downside volume flows. Following that gap down, shares of NBIX went on to continue its trend lower and the stock hit a new low of $10.42 a share. Shares of NBIX have started to rebound off that $10.42 low and it's now moving within range of triggering a major breakout trade.

  Traders should now look for long-biased trades in NBIX if it manages to break out above some near-term overhead resistance levels at its 200-day moving average of $11.92 a share and above its gap down day high of $12.17 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 894,145 shares. If that breakout triggers soon, then NBIX will set up to re-fill some of its previous gap down zone from September that started at $16.74 a share. Some possible upside targets for NBIX if it gets into that gap with volume are $14 to $15 a share.

  Traders can look to buy NBIX off any weakness to anticipate that breakout and simply use a stop that sits right below support at $11 a share, or below that recent low of $10.42 a share. One can also buy NBIX off strength once it takes out that breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Top Biotech Companies To Watch In Right Now: Alnylam Pharmaceuticals Inc.(ALNY)

Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, engages in discovering, developing, and commercializing novel therapeutics based on RNA interference (RNAi). Its core product programs under clinical or pre-clinical development include ALN-TTR, a Phase I clinical trial program for the treatment of transthyretin-mediated amyloidosis; ALN-APC, a Phase I clinical trial program for the treatment of hemophilia; ALN-PCS for the treatment of severe hypercholesterolemia; ALN-HPN, a pre-clinical development for the treatment of refractory anemia; and ALN-TMP, a pre-clinical development for the treatment of hemoglobinopathies, including beta-thalassemia and sickle cell anemia. The company?s partner-based programs comprise ALN-RSV01, a Phase II clinical trial program for the treatment of respiratory syncytial virus infection; ALN-VSP, a Phase I clinical trial completed program for the treatment of liver cancers; and ALN-HTT, a pre-clinical development for the treatment of Huntington?s disease. It has strategic alliances with Novartis Pharma AG; F. Hoffmann-La Roche Ltd; Takeda Pharmaceutical Company Limited; Isis Pharmaceuticals, Inc.; Medtronic Inc.; Kyowa Hakko Kirin Co., Ltd.; and Cubist Pharmaceuticals, Inc. The company was founded in 2002 and is headquartered in Cambridge, Massachusetts.

Advisors' Opinion:

• [By Dan Carroll]

  Biotech's known for volatility, and one of this year's biggest booms suffered a hit on that end this week. Alnylam Pharmaceuticals (NASDAQ: ALNY  ) , which has seen shares explode for gains of more than 142% year to date in 2013, lost more than 11% this past week to rank as one of biotech's biggest busts over the last five days.

• [By Ben Levisohn]

  Markey rates the stock a Buy with an $11 price target. Shares of MannKind have jumped 14% to $7.85 today. The SPDR Biotech ETF (XBI) has gained 0.7% to $119.85 today, while Alnylam Pharmaceuticals (ALNY) has gained 1% to $49.05, NPS Pharmaceuticals (NPSP) has fallen 4.1% to $23.56, and InterMune (ITMN) has risen 2.6% to $14.89.

Top Biotech Companies To Watch In Right Now: Dyadic International Inc (DYAI)

Dyadic International, Inc. (Dyadic), incorporated in September 2002, is a holding company. The Company is a global biotechnology company. The Company has operations at the United States and the Netherlands. Dyadic uses its technologies to conduct research and development (R&D) and commercial activities for the discovery, development, manufacture and sale of enzymes and proteins for the bioenergy, industrial enzyme, and biopharmaceutical industries. The Company derives all of its revenues from the licensing of its technologies, the sale of its enzymes and conducting research and development (R&D) activities for third parties. The Company operates in two segments: the United States operations and The Netherlands operations. The United States segment includes a subsidiary in Poland.

The United States operating segment is a developer, manufacturer and distributor of enzyme products, proteins, peptides and other bio-molecules derived from genes and a collaborative licensor of enabling technologies for the development and manufacturing of biological products and use in R&D. The Netherlands operating segment is also a researcher and developer of enzyme products, proteins, peptides and other bio-molecules derived from genes and, to date, has mainly invested in R&D activities.

Dyadic�� R&D activities focus on its fungal strains and associated technologies. Dyadic uses its Trichoderma and C1 fungal strains in the production of its industrial enzymes. Dyadic manufactures and sells liquid and dry enzyme products to global customers for use within the animal feed, pulp and paper, starch and alcohol, food and brewing, textiles, and biofuels industries.

Dyadic also utilizes a technology platform based on its patented and C1 fungus (the C1 Platform Technology), which enables the development and manufacture of proteins and enzymes for diverse market opportunities. The C1 Platform Technology can also be used to screen for the discovery of novel genes and proteins. The C1 Platf! orm Technology also has the potential of developing and producing other biological products such as antibodies, vaccines, proteins and polypeptides for the biopharmaceutical industry.

Asian Stocks Snap Three-Day Loss as Abe Wins Election

Asian stocks rose, with the regional benchmark index snapping three days of losses, after Japanese Prime Minister Shinzo Abe's victory in upper-house election gave him a freer hand to execute economic reforms.

Samsung Engineering Co. rose the most on MSCI Asia Pacific Index, jumping 8.3 percent in Seoul, on speculation it will post a profit in the third quarter. NEC Corp. added 4.2 percent in Tokyo after the Nikkei newspaper reported the computer manufacturer will form a server partnership with Hewlett-Packard Co. Minsheng Banking Corp., China's first non-state lender, dropped 0.8 percent after the central bank removed a floor on lending rates.

The MSCI Asia Pacific Index gained 0.5 percent to 135.65 as of 6:31 p.m. in Tokyo with all of the measure's 10 industry groups rising.

"Abe's victory in the upper house is bullish for Japanese equities and the Japanese economy as a whole, as the removal of political headwinds bolsters the government's ability to press forward with all 'three arrows' of its growth strategy," John Vail, Tokyo-based chief global strategist at Nikko Asset Management Co., which manages $162 billion, wrote in an e-mail. "Global investors should be seriously considering Japanese equities, or they may well miss out on major opportunities. These reforms will be even stronger than promised before the election."

The MSCI Asia Pacific Index advanced 4.3 percent this year through July 19, with consumer discretionary stocks leading the gain and energy shares falling the most among the 10 industry groups on the measure. The Asian benchmark gauge traded at 13.3 times estimated earnings, compared with 15.4 times for the Standard & Poor's 500 Index and 13.5 times for the Stoxx Europe 600 Index.

Regional Gauges

Japan's Topix index gained 0.4 percent after falling as much as 0.4 percent. The Nikkei 225 Stock Average advanced 0.5 percent after yesterday's victory by the ruling Liberal Democratic Party gave it an outright parliamentary majority, allowing Abe to push through economic reforms and deregulation. Shipping companies gained the most among the Topix's 33 industry groups. Nippon Yusen K.K. (9101), Japan's biggest shipping line by sales, added 3.4 percent to 303 yen. Mitsui O.S.K. Lines Ltd., ranked No. 2, gained 1.9 percent to 422 yen.

South Korea's Kospi index gained 0.5 percent. Australia's S&P/ASX 200 Index added 0.6 percent, while New Zealand's NZX 50 Index climbed 0.4 percent. Taiwan's Taiex Index rose 0.5 percent and Singapore's Straits Times Index gained 0.7 percent.

Hong Kong

Hong Kong's Hang Seng Index gained 0.3 percent and China's Shanghai Composite Index added 0.6 percent. The People's Bank of China scrapped the floor on the rates banks can charge customers on July 19 while keeping a cap on deposit rates. Chinese Premier Li Keqiang said July 16 the nation will seek to keep economic growth, employment and inflation within limits.

"The gesture by the PBOC was symbolically important, but the actual economic and financial impact was neutral," said Khiem Do, Hong Kong-based head of Asian multi-asset strategy at Baring Asset Management Ltd., which manages about $51 billion. Li's comments last week "provide a bottom to the market, but for the market to go up strongly, one needs to see clear measures to boost growth in China."

China Minsheng dropped 0.8 percent to HK$7.78 in Hong Kong as Moody's Investors Service said it will face increased competition for loans to small and medium enterprises. Chongqing Rural Commercial Bank Co., created after the government merged rural cooperatives in the region, lost 2.5 percent to HK$3.14. Industrial & Commercial Bank of China Ltd., the country's No. 1 lender, retreated 1.2 percent to HK$4.86.

U.S. Earnings

Futures on the S&P 500 rose 0.1 percent today. The measure added 0.2 percent in New York on July 19, capping a fourth straight week of gains, as better-than-forecast results from General Electric Co. offset disappointing earnings from Google Inc. and Microsoft Corp.

About 53 percent of S&P 500 companies that have reported second-quarter results have beaten revenue projections, according to data compiled by Bloomberg.

Among other stocks that rose, Samsung Engineering soared 8.3 percent to 76,000 won, the most since September 2011. The provider of engineering construction and project management services is expected to post an operating profit of 130 billion won ($116 million) in the third quarter as it makes up losses from about five overseas projects in the first half, said Wayne Lee, an analyst at Woori Investment & Securities Co.

NEC added 4.2 percent to 246 yen in Tokyo after the Nikkei newspaper reported the computer manufacturer will form a server partnership with Hewlett-Packard Co.

China Resources Power Holdings Co., a mainland electricity generator that tumbled 15 percent last week amid allegations of overpaying for coal assets, rose 5.2 percent to HK$17.74 in Hong Kong as shareholders rejected a merger plan with China Resources Gas Group Ltd.

Don't Get Too Worked Up Over OSI Systems's Earnings

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

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

Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on OSI Systems (Nasdaq: OSIS  ) , whose recent revenue and earnings are plotted below.

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

Over the past 12 months, OSI Systems burned $72.1 million cash while it booked net income of $48.2 million. That means it burned through all its revenue and more. That doesn't sound so great. FCF is less than net income. Ideally, we'd like to see the opposite.

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

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

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

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

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

With 22.0% of operating cash flow coming from questionable sources, OSI Systems investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, stock-based compensation and related tax benefits provided the biggest boost, at 19.5% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures.

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

Looking for alternatives to OSI Systems? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

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

Add OSI Systems to My Watchlist.

Asian shares mostly lower; techs struggle in Seoul

Asian stock markets traded mostly lower Friday, with tech companies struggling in Seoul as investors digested a slew of corporate earnings, while Sydney shares continued to outperform amid recent upbeat economic data from China.

South Korea's Kospi (KR:SEU)  fell 0.8%, with the index's largest single constituent, Samsung Electronics (KR:005930)   (SSNLF)  , down 0.6% after it reported third-quarter net profit had risen 25.6% to another record high. Before the results, the stock enjoyed a strong run-up, and remains 5.3% higher so far in October.

Bloomberg

Also in Seoul, LG Electronics (KR:066570)   (LGEJY)  dropped 3.4% after it reported on Thursday a 34% decline in net profit over the same period.

In Hong Kong, China Unicom (HK:762)   (CHU)  added 1.2% after the firm reported a 51% increase in net profit for the third quarter. The company's results came days after China Mobile (HK:941)   (CHL)  reported a net-profit decline, prompting a sharp drop in the stock earlier in the week.

In Japan, Canon (JP:7751)   (CAJ)  fell 1% after it lowered its full-year net profit forecast to ¥240 billion from a previous estimate of ¥260 billion set in July. Mitsubishi Motors Corp. (JP:7211)   (MMTOF)  added 1.9% after the car company increased its profit outlook.

More broadly, the absence of fresh catalysts left regional markets to drift lower.

In Japan, the Nikkei Average remained under pressure from a yen that has firmed up in recent sessions. The Japanese currency (USDJPY)   maintained its strength, last at ¥97.36 to the dollar, helping to pull the Nikkei Average (JP:NIK)  down 1%.

Chinese markets were slightly lower, moderating after larger declines in the previous two sessions. Hong Kong's Hang Seng Index (HK:HSI)  lost 0.3%, and the Shanghai Composite (CN:SHCOMP)  was less than 0.1% down.

Click to Play China's smog expected to worsen

Coal burning from winter heating, vehicle emissions and crop burning are producing heavy smog in northern China. Jennifer Turner from the China Environment Forum discusses what's needed to clear the skies.

Australia, however, continued to edge higher, with the S&P/ASX 200 (AU:XJO)  up 0.4%.

Sydney's steady gains over the week made it one of the best performers, up 1.4% since last Friday, as the market hit a fresh five-year high. Sydney welcomed fresh signs of stabilization in China — its major trading partner.

At the end of last week, Chinese growth numbers showed a pick-up in the region's largest economy in the third quarter, and on Thursday, preliminary data on Chinese manufacturing reached a seven month high.

Although the positive effects of this data provided some support across the region, markets within China were more focused on a sharp rise in money-market rates, which brought back memories of a liquidity crisis earlier June. In addition, another increase in house prices raised concerns that Beijing could step in to cool down the market.

These fears combined to make Chinese stocks some of the worst performers for the week, with the Hang Seng Index down 2.3%, and the Shanghai Composite falling 1.5% over the same period.

Stocks to Watch: Caterpillar, Boeing, Motorola Solutions

Among the companies with shares expected to actively trade in Wednesday’s session are Caterpillar Inc.(CAT), Boeing Co.(BA) and Motorola Solutions Inc.(MSI)

Caterpillar’s third-quarter earnings fell 44% as the maker of mining and construction equipment said weak demand for mining equipment continued to weigh on results. Results missed expectations, and the world’s largest seller of bulldozers, excavators and wheel loaders lowered its full-year guidance, sending shares down 5% to $84.74 premarket.

Boeing’s third-quarter earnings rose 12% as strength in its commercial aircraft business offset weaker profits at its defense division. The company raised its per-share earnings estimate for the year as results beat views. Shares edged up 2.8% to $125.90 premarket.

Motorola Solutions’ third-quarter earnings rose 49% as the company posted significantly lower tax costs thanks to foreign tax credits, though revenue was down. The bottom line beat views, and the company guided for strong earnings for the year. Shares climbed 3.5% to $62.57 premarket.

American Realty Capital Properties Inc.(ARCP) agreed to buy Cole Real Estate Investments Inc.(COLE) for about $7 billion, joining together two real-estate investment trusts. The expanded company will include a combined portfolio of more than 3,700 properties with over 100 million square feet in 49 states and Puerto Rico. Cole shares surged 16% to $14.91 premarket, while American Realty climbed 5.8% to $14.12.

Repros Therapeutics Inc.(RPRX) pushed back its planned new drug application for its low-testosterone treatment, following a request from the U.S. Food and Drug Administration to discuss recent trial data. The company now expects to submit its new drug application for Androxal in the second half of next year. Shares were down 30% at $16.70 premarket.

Toy maker Jakks Pacific Inc.(JAKK) posted better-than-expected results, including revenue not falling as much as feared and profit surprisingly rising. Shares surged 22% to $6.03 premarket.

Broadcom Corp.'s(BRCM) third-quarter profit rose 44% as the chip maker’s margins and revenue increased, but it offered weak revenue guidance for the current quarter. Shares were down 8.3% to $24.89 premarket as the company’s fourth-quarter revenue projection missed analyst expectations.

Corning Inc.(GLW) said it will take control of a joint venture with Samsung Electronics Co.’s (005930.SE) business that makes LCD glass in Korea and receive a $1.9 billion investment in a series of transactions to strengthen collaboration between the two companies. Shares jumped 21% to $18.50 in premarket trading.

Panera Bread Co.’s third-quarter profit jumped 17% as higher prices lifted same-store sales at company-owned stores, though the amount of transactions recorded at those restaurants declined. Same-store sales growth at company-owned locations missed Panera’s July projection, and the company trimmed its outlook targets. Shares fell 4.3% to $155.40 in premarket trading.

Apollo Group Inc.'s(APOL) fiscal fourth-quarter profit tumbled 71% as the for-profit education company reported a double-digit drop in enrollment at the University of Phoenix. But the company’s shares jumped 19% to $24.93 in premarket trading as results for the period easily topped Wall Street’s expectations.

Cree Inc.'s(CREE) fiscal first-quarter profit grew 89% as the maker of LED lighting products and semiconductor components posted higher revenue and margins. But shares dropped 16% premarket to $62.25 as the company predicted weaker-than-expected earnings for its second quarter.

Unisys Corp.(UIS) narrowed its loss in the third quarter as a decrease in costs partially offset a decline in revenue. Shares of the company, which provides information-technology services and software for commercial and government clients, fell 8.1% to $23.99 in premarket trading as its earnings and revenue came in below analysts’ expectations.

Altera Corp.'s(ALTR) third-quarter earnings dropped 24% as the chip maker’s sales sagged across most of its markets. Shares dropped 7% to $34.72 in light premarket trading.

Amarin Corp.(AMRN) PLC said it plans to eliminate about half of its staff positions world-wide as the biotechnology company looks to reduce its operating expenses in the wake of a vote by the U.S. Food and Drug Administration advisory committee against its supplemental new drug application for its cholesterol drug Vascepa. Shares slid 5.7% to $2.15 premarket.

RF Micro Devices Inc.(RFMD) swung to a fiscal second-quarter profit as the wireless-chip maker recorded a surge in revenue. Shares slid 7% to $5.73 premarket as the company’s current quarter revenue guidance was weaker than expected.

STMicroelectronics NV’s third-quarter loss narrowed as the company reported far fewer impairment and restructuring charges than a year ago, though overall revenue fell on weakness at the wireless business. Shares dropped 6.6% to $8.12 premarket.

J.C. Penney stock target: $1

Click the chart to track shares of J.C. Penney.

NEW YORK (CNNMoney) Is J.C. Penney on the path toward becoming a penny stock?

On Monday, Imperial Capital analyst Mary Ross-Gilbert slashed her price target on J.C. Penney shares to just $1, down from a previous target of $5, amid growing concern over whether the troubled retailer is headed toward bankruptcy.

J.C. Penney (JCP, Fortune 500) shares have tumbled nearly 70% this year, and are currently trading just below $7, the lowest level in over three decades.

Bankruptcy rumors: One of the biggest hindrances to J.C. Penney's stock has been talk of the retailer going bankrupt.

J.C. Penney has staunchly denied rumors about credit problems and bankruptcy, which have have plagued the retailer for some time, saying it will end the year with $2 billion of easily accessible cash.

J.C. Penney calls the rumors "unequivocally false," saying last week that they amounted to nothing more than "attempted market manipulation by certain types of investors for their own personal gain."

Even if the reports are inaccurate or misleading, they are wearing down management and vendors, said Ross-Gilbert. And that could force J.C. Penney into bankruptcy next year.

"While we think J.C. Penney can be turned around, we are becoming increasingly concerned that without a 'deep-pocketed' long-term investors providing financial and 'halo' support, the company may strategically file for bankruptcy protection to conserve cash while it continues to execute a turnaround in 2014 and 2015," she said.

Avoid the stock, but check out J.C. Penney's long bonds: Ross-Gilbert is also bearish on the company's short-term debt, particularly bonds maturing between 2015 and 2018.

But she's a little more upbeat long term, and is maintaining a buy rating on bonds maturing between 2020 and 2097.

"We continue to believe in the viability and sustainability of J.C. Penney," she said.

  J.C. Penney not dead yet

Holiday sales will be key: While no Wall Street analysts are bullish on J.C. Penney, most have a hold rating on the stock as they wait to see how sales fare during ! the all-important holiday season. This year J.C. Penney will kick off its holiday shopping period at 8 p.m. ET on Thanksgiving Day, just like rival Macy's (M, Fortune 500).

Last year, under CEO Ron Johnson, who came to J.C. Penney from Apple (AAPL, Fortune 500) and was ousted from the top spot in April, sales plunged almost 30% during the holiday quarter. This year, under returning CEO Mike Ullman, analysts expect sales to edge up 1%, according to FactSet.

While that would be an improvement, Ross-Gilbert said it still may not be enough to "instill confidence for equity investors and vendors."

Fed to Keep Rate Near Zero; Bernanke Forecasts Bond-Buying Slowing

In a statement released today, the Federal Reserve said it will maintain its current securities-buying program, as well as its 0% to 0.25% target range for the federal funds rate, but signaled it's closer to slowing the $85 billion-a-month buying program.

In its statement, the Federal Reserve noted that, although economic activity has been expanding at a "moderate pace" due to an improved labor market, household spending, business investment, and housing market, fiscal policy continues to "restrain" growth and that "appropriate policy accommodation" is necessary for improvements to continue. As such, the Federal Open Market Committee will continue to buy agency mortgage-backed securities at a pace of $40 billion per month and $45 billion of longer-term Treasury securities per month. The Committee hopes that these moves will have the double effect of supporting mortgage markets while keeping longer-term interest rates low.

Speaking at a news conference, Chairman Ben Bernanke said the Fed could start scaling back its $85 billion in monthly bond purchases later this year if the economy continues to improve. He said the reductions would occur in "measured steps" and that the purchases could end by the middle of next year. Bernanke likened any reduction in the Fed's bond purchases to a driver letting up on a gas pedal rather than applying the brakes.

The Fed's 0% to 0.25% target range for the federal funds rate "will remain appropriate for a considerable time," according to the statement. The federal funds rate is what banks charge each other to borrow money at the Fed. The Committee expects to keep rates at this level until the unemployment rate drops below 6.5% (assuming inflation remains under control).

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

The Dow's 5 Most Loved Stocks

Move over, Superman: There's a more unstoppable force that can leap even the highest expectations, and its name is the Dow Jones Industrial Average (DJINDICES: ^DJI  ) . America's most iconic stock market index comprising 30 of its most globally diverse companies is up an astonishing 16.4% year to date and hasn't seen a down month since October.

Plenty of factors are working in the Dow's favor, such as record-low lending rates that are spurring business lending and home purchases, as well as an improving unemployment rate and slow-but-steady growth in the manufacturing sector.

While your initial thought might be that this rally is long overdue for a correction, short-sellers have wisely avoided certain companies within the Dow Jones Industrial Average. Today I propose we look at these so-called most-loved stocks of the Dow, discover what makes them so universally shunned by short-sellers, and determine whether current shareholders have anything to worry about.

Company

Short Interest As a % of Shares Outstanding

Merck (NYSE: MRK  )	0.76%
Coca-Cola (NYSE: KO  )	0.77%
Pfizer (NYSE: PFE  )	0.78%
United Technologies (NYSE: UTX  )	0.80%
Wal-Mart	0.82%

Source: S&P Capital IQ.

Merck
Why are short-sellers avoiding Merck?

Merck jumped to the top of the least short-sold list after not even appearing on it last month likely because of its strong clinical data reported at the American Society of Clinical Oncology's annual meeting. A new class of immunotherapy drugs known as PD-1 inhibitors are the hottest thing in the biotech sector, and Merck's Lambrolizumab delivered an impressive 38% overall response rate in early-stage results for advanced melanoma. With patent expirations not stinging its bottom line as much as expected, Merck is certainly wowing existing shareholders.

Do investors have a reason to worry?

There is no such thing as a reason not to worry when it comes to owning a pharmaceutical company, because patent protection periods are for only a finite period of time. Luckily for Merck, it has fracture-preventing osteoporosis drug Odanacatib slated to be filed for new drug approval next year, and it has the potential to deliver up to $3 billion in sales, according to the Street's estimates. Although growth prospects might be tempered over the coming years for Merck, it'll still deliver strong cash flow and a solid dividend, which doesn't make it a particularly convincing short-sale candidate.

Coca-Cola
Why are short-sellers avoiding Coca-Cola?

I'm still trying to figure out how Coca-Cola got bumped from its top spot this month, or any other month for that matter. Coca-Cola operates in all but two countries worldwide, giving it what is essentially unparalleled geographic diversity. The company offers everything from high-growth energy drinks to slow-but-steady brand-name growth with its traditional sparkling beverage lines. It's no wonder that research firm Interbrand anointed Coca-Cola as its most valuable brand in the world for 2013.

Source: KB35, Flickr. 

Do investors have a reason to worry?

Only if they're planning to try to make a quick buck on Coca-Cola over the short term. Of course, no stock is going to go up forever, and even Coca-Cola could run into slower growth in developed regions such as Western Europe and the U.S. in the short run. However, there's still a moat of opportunity in emerging-market nations for Coca-Cola to grow, and it boasts incredible pricing power over its peers. Simply put, with 51 straight annual dividend increases under its belt, why would you ever bet against Coca-Cola?

Pfizer
Why are short-sellers avoiding Pfizer?

Just as we saw with Merck, big pharmaceutical companies often provide big dividends, huge margins, and steady cash flow, which make them poor short-sale candidates. Short-sellers have even less reason to bet against Pfizer, with blood-thinning drug Eliquis, which is co-developed with Bristol-Myers Squibb, being approved by the Food and Drug Administration in late December. Eliquis has multibillion-dollar potential.

Do investors have a reason to worry?

Yet again, it depends on what your investing timeframe is. For short-term investors, Pfizer may cause shareholders fits, with Lipitor's expiration still stinging and blockbuster pain drug Celebrex due to lose patent exclusivity in December 2015 after a one-and-a-half-year extension in March. Over the long run, Eliquis and Pfizer's remaining pipeline may prove more than enough to continue to pump out steady profits, and short-sellers would be wise to keep their distance.

United Technologies
Why are short-sellers avoiding United Technologies?

Despite serving the building and aerospace industries, which are quite prone to hiccups related to lower government spending, United Technologies silenced pessimists in the first quarter by reporting an adjusted EPS increase of 16% and reaffirming its full-year EPS outlook. What weakness had been expected in the U.S. appears to be more than made up by growth in its equipment orders aboard -- especially in China.

Do investors have a reason to worry?

United Technologies is more of a macroeconomic global play than anything else. Unless we see a rapid deterioration in Europe's economy, or we see China's GDP break into the 5% GDP growth range (about half its 30-year average growth rate), then shareholders probably don't have too much to worry about. Keep an eye on growth rates in China, as they'll probably dictate where United Technologies heads next.

Wal-Mart
Why are short-sellers avoiding Wal-Mart?

The thesis for why pessimists avoid Wal-Mart is relatively simple: It's the largest retail chain in the world, and it commands incredible pricing power that can squash a good chunk of its competitors. Wal-Mart provides investors with predictable cash flow stemming from the fact that more than half of its revenue comes from the grocery aisle. As a one-stop-shop for nearly everything, it certainly doesn't offer short-sellers a compelling reason to bet against it.

Do investors have a reason to worry?

This might be the one case among these five companies where investors should be showing signs of concern. Wal-Mart may the "low-price leader," but even it is having trouble with higher payroll taxes and delayed tax refunds because of IRS furloughs eating into its bottom line. Wal-Mart is a good indicator for retail sales in our economy, and its 1.4% same-store sales decline in its latest quarter may not bode well for the retailer in the interim. Wal-Mart isn't particularly expensive at 13 times forward earnings, but its revenue growth rate of 4% certainly leaves a lot to be desired.

Which most loved Dow Jones component do you think has the best chance at moving decisively lower? Share your thoughts in the comments section below.

Can Merck beat the patent cliff?
This titan of the pharmaceutical industry stumbled into 2013 and continues to battle patent expirations and pipeline problems. Is Merck still a solid dividend play, or should investors be looking elsewhere? In a new premium research report on Merck, the Fool tackles all of the company's moving parts, its major market opportunities, and reasons to both buy and sell. To find out more click here to claim your copy today.

10 Best Growth Stocks To Own Right Now

LONDON -- To me, capital growth and dividend income are equally important. Together, they provide the total return from any share investment, and as you might expect, my aim is to invest in companies that can beat the total return delivered by the wider market.

To put that aim into perspective, the FTSE 100 has provided investors with a total return of about 3% per annum since January 2008.

Quality and value
If my investments are to outperform, I need to back companies that score well on several quality indicators and buy at prices that offer decent value. So this series aims to identify appealing FTSE 100 investment opportunities, and today I'm looking at Imperial Tobacco Group (LSE: IMT.L  ) (NASDAQOTH: ITYBY), the cigarette and tobacco products manufacturer.

10 Best Growth Stocks To Own Right Now: MEDIFAST INC(MED)

Medifast, Inc., through its subsidiaries, engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. The company?s product lines include weight and disease management, meal replacement, and vitamins. It also operates weight control centers that offer Medifast programs for weight loss and maintenance, customized patient counseling, and inbody composition analysis. The company markets its products under the Medifast and Essential brand names, including shakes, appetite suppression shakes, women?s health shakes, diabetics shakes, joint health shakes, coronary health shakes, calorie burn drinks, calorie burn flavor infusers, antioxidant shakes, antioxidant flavor infusers, bars, crunch bars, soups, chili, oatmeal, pudding, scrambled eggs, hot cocoa, cappuccino, chai latte, iced teas, fruit drinks, pretzels, puffs, brownie, pancakes, soy crisps, crackers, and omega 3 and digestive health products. Medifast Inc. sells its products through various channels of distribution comprising Web, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing supported via the phone and the Web; Take Shape for Life, a physician led network of independent health coaches; and weight control centers. The company was founded in 1980 and is headquartered in Owings Mills, Maryland.

Advisors' Opinion:

• [By Jon C. Ogg]

  Medifast Inc. (NYSE: MED) saw its stock down 5% in evening trading on Tuesday after the weight loss player had soft sales and guided expectations lower. Shares were still indicated down about 5%, but volume has not yet started.

• [By Holly LaFon] ast produces, distributes and sells weight and health management products with the brand names Medifast, Take Shape for Life, Hi-Energy Weight Control Centers and Woman�� Wellbeing.

  Its return on assets in the third quarter of 2011 was 19.6%, which has been increasing in the past several years. The average return on assets for the specialty retail industry is 10.48% for the trailing 12 months.

  The company�� total assets amounted to $94 million in 2010, which increased from $62.8 million in 2009. Net income also increased to $19.6 million in 2010 from $12 million in 2009.

  Boston Beer Inc. (SAM)

  Boston Beer Inc. is the largest brewer of handcrafted beers in America. Boston Beer is a growing company that recently saw a large increase in its return on assets. It increased from 19.3% in 2010 to 29.7% in 2011, and was negative as recently as 2008. The average return on assets for the beverages industry in the trailing 12 months is 9.47%.

  In 2011, the company�� total assets increased to $272.5 million from $258.5 million in 2010. Net income increased to $66 million from $50 million.

  Alliances Resources Partners (ARLP)

  Alliance Resources Partners is a coal producer and marketer primarily in the eastern U.S. Its ROA has been increasing since 2008 and increased to 22.5% in 2011 from 21.4% in 2010. The average return on assets for the oil, gas & consumable fuels industry in the trailing 12 months is 24.47%.

  In 2011, its total assets increased to $1.7 billion from $1.1 billion in 2010. Its net income increased to $389 million from $321 million.

  Factset Research Systems Inc. (FDS)

  Factset researches global market trends and develops analytical tools for investors. Of all of GuruFocus��5-star predictable companies, it has the highest return on assets at 27%. ROA has been increasing over the past several years. The average return on assets for the software industry for the trailing 12 m

10 Best Growth Stocks To Own Right Now: CNO Financial Group Inc. (CNO)

CNO Financial Group, Inc., through its subsidiaries, engages in the development, marketing, and administration of health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States. The company markets and distributes Medicare supplement insurance, interest-sensitive and traditional life insurance, fixed annuities, and long-term care insurance products; Medicare advantage plans through a distribution arrangement with Humana Inc.; and Medicare Part D prescription drug plans through a distribution and reinsurance arrangement with Coventry Health Care. It also markets and distributes supplemental health, including specified disease, accident, and hospital indemnity insurance products; and life insurance to middle-income consumers at home and the worksite through independent marketing organizations and insurance agencies. In addition, the company markets primarily graded benefit and simplified issue life insurance products directly to customers through television advertising, direct mail, Internet, and telemarketing. It sells its products through career agents, independent producers, direct marketing, and sales managers. CNO Financial Group, Inc. has strategic alliances with Coventry and Humana. The company was formerly known as Conseco, Inc. and changed its name to CNO Financial Group, Inc. in May 2010. CNO Financial Group, Inc. was founded in 1979 and is headquartered in Carmel, Indiana.

Advisors' Opinion:

• [By David Fried, Editor, The Buyback Letter]

  Insurance holding company CNO Financial Group (CNO) and its insurance subsidiaries��rincipally Bankers Life and Casualty Company, Washington National, and Colonial Penn Life Insurance Company��erve pre-retiree and retired Americans.

Top Casino Companies To Invest In 2014: Nordstrom Inc.(JWN)

Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It offers a selection of brand name and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey? boutiques, treasure & bond, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog. Nordstrom also provides a private label card, two Nordstrom VISA credit cards, and a debit card for Nordstrom purchases. The company?s credit and debit cards feature a shopping-based loyalty program. As of September 30, 2011, it operated 222 stores, including 117 full-line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure & bond store, and 1 clearance store in 30 states. The company was founded in 1901 and is based in Seattle, Washington.

Advisors' Opinion:

• [By Ben Levisohn]

  JC Penney’s gain is all the more surprising consider what’s happened to other retailers today. Macy’s (M) has dropped 0.8% to $43.83, Kohl’s (KSS) has dipped 0.4% to $50.16 , Dillard’s (DDS) has fallen 2% to $76.19 and Nordstrom (JWN) has declined o.6% to $56.98.

• [By Rich Duprey]

  Department store operator Nordstrom (NYSE: JWN  ) will pay a second-quarter dividend of $0.30 per share, the same rate it paid last quarter after it increased it 11% from $0.27 per share, the company announced yesterday.

10 Best Growth Stocks To Own Right Now: Intuitive Surgical Inc.(ISRG)

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Its da Vinci surgical system consists of a surgeon?s console or consoles, a patient-side cart, a 3-D vision system, and proprietary ?wristed? instruments. The company?s da Vinci surgical system translates the surgeon?s natural hand movements on instrument controls at the console into corresponding micro-movements of instruments positioned inside the patient through small puncture incisions, or ports. It also manufactures a range of EndoWrist instruments, which incorporate wrist joints for natural dexterity for various surgical procedures. Its EndoWrist instruments consist of forceps, scissors, electrocautery, scalpels, and other surgical tools. In addition, it sells various vision and accessory products for use in conjunction with the da Vinci Surgical System as surgical procedures are performed. The company?s accessory products include sterile drapes used to ensure a sterile field during surgery; vision products, such as replacement 3-D stereo endoscopes, camera heads, light guides, and other items. It markets its products through sales representatives in the United States, and through sales representatives and distributors in international markets. The company was founded in 1995 and is headquartered in Sunnyvale, California.

Advisors' Opinion:

• [By Sean Williams]

  Ascending to the top of the pack was robotic surgical device maker Intuitive Surgical (NASDAQ: ISRG  ) , which gained 4.8% after winning a lawsuit involving its da Vinci surgical system. The plaintiff in the case was a family that sued for $4.9 million following complications from a 14-hour prostate cancer surgery. The jury's verdict isn't too important from a monetary perspective for Intuitive so much as it reinforces the safety of its surgical devices, which are currently under investigation by the federal regulators. I certainly feel there could be further upside in Intuitive shares from here.

10 Best Growth Stocks To Own Right Now: Crocs Inc.(CROX)

Crocs, Inc. and its subsidiaries engage in the design, development, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children. The company primarily offers casual and athletic shoes, and shoe charms. It also designs and sells a range of footwear and accessories that utilize its proprietary closed cell-resin, called Croslite. The company?s footwear products include boots, sandals, sneakers, mules, and flats. In addition, it provides footwear products for the hospital, restaurant, hotel, and hospitality markets, as well as general foot care and diabetic-needs markets. Further, the company offers leather and ethylene vinyl acetate based footwear, sandals, and printed apparels principally for the beach, adventure, and action sports markets; and accessories comprising snap-on charms. The company sells its products through the United States and international retailers and distributors, as well as directly to end-user consumers th rough its company-operated retail stores, outlets, kiosks, and Web stores primarily under the Crocs Work, Crocs Rx, Jibbitz, Ocean Minded, and YOU by Crocs brand names. As of December 31, 2010, it operated 164 retail kiosks located in malls and other high foot traffic areas; 138 retail stores; 76 outlet stores; and 46 Web stores. Crocs, Inc. operates in the Americas, Europe, and Asia. The company was formerly known as Western Brands, LLC and changed its name to Crocs, Inc. in January 2005. Crocs, Inc. was founded in 1999 and is headquartered in Niwot, Colorado.

Advisors' Opinion:

• [By Matt Brownell]

  AOL When we spoke to Crocs (CROX) CEO John McCarvel back in January, we couldn't help but notice his choice of footwear: He wasn't wearing Crocs. But we couldn't really hold it against him. McCarvel was in town to accept an innovator award from the National Retail Federation, and Crocs didn't really make anything appropriate for the occasion. You can't wear Crocs with a suit, right? Well, that's not entirely true. As it turns out, Crocs now offers a number of shoes that are a bit more on the dressy side. They've got loafers, for instance, which could work at the country club. And for the office they've got the "Tummler" shoe, which combines the molded rubber clogs with a black leather slip-on dress shoe. As the website explains, it's meant to be a "work shoe you can live with." Around the same time we came across the Crocs dress shoe, we also became aware of another product that tries to combine stay-at-home comfort with office-appropriate wear: Dress pants-style sweatpants. These have all the comfort and warmth of a pair of sweatpants, but are designed like a pair of dress slacks, complete with back pockets, belt loops and pinstripes. Together, the Crocs dress shoes and sweatpants dress pants suggest a new paradigm for office wear: Dressy enough to pass muster with your boss, but comfortable enough that you can feel like you're having a pajama day working from home. But could you really pull this off in an office environment? To find out, I got a pair of each, then put them on and headed down to the offices of StyleList, Aol's fashion experts. I modeled my office wear for a panel of three StyleList editors: Ellen Thomas, Logan Sowa and Abby Silverman. Their first reaction was telling -- two of them didn't realize that I'd actually changed into the sweatpants. That, I thought, meant that I could get away with wearing sweatpants without anyone noticing. But on closer inspection, doubts started to emerge. "I don't think I'll ever be inclined to think this is

• [By Brian Pacampara]

  What: Shares of plastic shoe specialist Crocs (NASDAQ: CROX  ) plummeted 21% today after its quarterly results and outlook easily missed Wall Street expectations.

• [By Rich Bieglmeier]

  According to Yahoo finance, Crocs, Inc. (CROX) will release its third quarter financial results on Monday, October 21, 2013; however, the company's investor's relations page makes no note of any impending announcements. That being said, CROX normally reports Q3 EPS around October 24th. So, next Thursday-ish instead of Monday is possible.

• [By Chris Hill]

  Visa (NYSE: V  ) and Under Armour (NYSE: UA  ) hit new all-time highs. General Motors (NYSE: GM  ) appears to be turning the corner in Europe. And second-quarter profits for Crocs (NASDAQ: CROX  ) fell a whopping 43%. In this installment of Investor Beat, Motley Fool analysts David Hanson and Jason Moser discuss four stocks making moves on Thursday.

10 Best Growth Stocks To Own Right Now: Checkpoint Systms Inc.(CKP)

Checkpoint Systems, Inc. manufactures and markets identification, tracking, security, and merchandising solutions for the retail and apparel industry worldwide. The company operates in three segments: Shrink Management Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. The Shrink Management Solutions segment provides shrink management and merchandise visibility solutions. It offers electronic article surveillance systems, such as EVOLVE, a suite of RF and RFID-enabled products that act as a deterrent to prevent merchandise theft in retail stores; and electronic article surveillance consumables, including EAS-RF and EAS-EM labels that work in combination with EAS systems to reduce merchandise theft in retail stores. This segment also provides keepers, spider wraps, bottle security, and hard tags, as well as Showsafe, a line alarm system for protecting display merchandise. In addition, it offers physical and electronic store monitoring solutions, incl uding fire alarms, intrusion alarms, and digital video recording systems for retail environments; and RFID tags and labels. The Apparel Labeling Solutions segment provides apparel labeling solutions to apparel retailers, brand owners, and manufacturers. It has Web-enabled apparel labeling solutions platform and network of 28 service bureaus located in 22 countries that supplies customers with customized apparel tags and labels. The Retail Merchandising Solutions segment offers hand-held label applicators and tags, promotional displays, and queuing systems. The company serves retailers in the supermarket, drug store, hypermarket, and mass merchandiser markets through direct distribution and reseller channels. Checkpoint Systems was founded in 1969 and is based in Thorofare, New Jersey.

Advisors' Opinion:

• [By Rich Smith]

  Three months after settling upon a new chief executive officer, it looks like Thorofare, N. J.-based Checkpoint Systems (NYSE: CKP  ) will soon have itself a new CFO as well.

10 Best Growth Stocks To Own Right Now: Sara Lee Corporation(SLE)

Sara Lee Corporation engages in the manufacture and marketing of a range of branded packaged meat, bakery, and beverage products worldwide. Its packaged meat products include hot dogs and corn dogs, breakfast sausages, sandwiches and bowls, smoked and dinner sausages, premium deli and luncheon meats, bacon, beef, turkey, and cooked ham. It also offers frozen baked products, which comprise frozen pies, cakes, cheesecakes, pastries, and other desserts. In addition, Sara Lee provides roast, ground, and liquid coffee; cappuccinos; lattes; and hot and iced teas, as well as refrigerated dough products. The company sells its products under Hillshire Farm, Ball Park, Jimmy Dean, Sara Lee, State Fair, Douwe Egberts, Senseo, Maison du Caf

10 Best Growth Stocks To Own Right Now: Eastern Insurance Holdings Inc.(EIHI)

Eastern Insurance Holdings, Inc., through its subsidiaries, provides workers compensation insurance and reinsurance products in the United States. The company?s Workers Compensation Insurance segment provides traditional workers compensation insurance coverage products, including guaranteed cost policies, policyholder dividend policies, retrospectively-rated policies, deductible policies, and alternative market products to employers. This segment distributes its workers? compensation products and services through its independent insurance agents primarily in Pennsylvania, Delaware, North Carolina, Maryland, Indiana, and Virginia. Its Segregated Portfolio Cell Reinsurance segment offers alternative market workers compensation solutions comprising program design, fronting, claims administration, risk management, segregated portfolio cell rental, asset management, and segregated portfolio management services to individual companies, groups, and associations. Eastern Insurance Holdings, Inc. is headquartered in Lancaster, Pennsylvania.

Advisors' Opinion:

• [By Lauren Pollock]

  ProAssurance Corp.(PRA) agreed to acquire Eastern Insurance Holdings Inc.(EIHI) for about $205 million, expanding the insurance company’s casualty insurance offerings. Eastern Insurance is a domestic casualty insurance group specializing in workers’ compensation products and services, among other things. ProAssurance plans to pay $24.50 in cash for each outstanding Eastern share, a 16% premium over Monday’s closing price.

10 Best Growth Stocks To Own Right Now: Thoratec Corporation(THOR)

Thoratec Corporation engages in the development, manufacture, and marketing of proprietary medical devices used for circulatory support. The company?s primary product lines include ventricular assist devices, such as HeartMate II, an implantable left ventricular assist device consisting of a rotary blood pump to provide intermediate and long-term mechanical circulatory support (MCS); and HeartMate XVE, an implantable and pulsatile left ventricular assist device for intermediate and longer-term MCS. Its ventricular assist devices also comprise Paracorporeal Ventricular Assist Device, an external pulsatile ventricular assist device, which provides left, right, and biventricular MCS approved for bridge-to-transplantation (BTT), including home discharge, and post-cardiotomy myocardial recovery; and Implantable Ventricular Assist Device, an implantable and pulsatile ventricular assist device designed to provide left, right, and biventricular MCS approved for BTT comprising hom e discharge, and post-cardiotomy myocardial recovery. The company also provides CentriMag, an extracorporeal full-flow acute surgical support platform that offers support up to 30 days for cardiac and respiratory failure. In addition, it offers PediMag and PediVAS extracorporeal full-flow acute surgical support platforms designed to provide acute surgical support to pediatric patients. The company sells its products through direct sales force in the United States, as well as through a network of distributors internationally. Thoratec Corporation was founded in 1976 and is headquartered in Pleasanton, California.

Advisors' Opinion:

• [By Brian Pacampara]

  What: Shares of medical device company Thoratec (NASDAQ: THOR  ) sank 12% today after its quarterly results missed Wall Street expectations. �

10 Best Growth Stocks To Own Right Now: Waste Management Inc.(WM)

Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.

Advisors' Opinion:

• [By Holly LaFon]

  He is avoiding Apple (AAPL) and IPOs, as they remind him of 1983, the year he learned the beauty of boring when blue chips such as Waste Management (WM) and Pepsico (PEP) were stumbling and selling cheap, while 30 glitzy PC stocks went public and soared. Since then, the blue chips have overcome their problems and rose in value again, and most of the PC companies are gone.

Top 10 Low Price Stocks To Own Right Now

There's a multi-year high in demand from the jewelry sector and record demand for gold bars and coins, but slowing demand from central banks balanced it all out, writes MoneyShow's Jim Jubak, also of Jubak's Picks.

Gold spiked higher yesterday on news of more violence in the Middle East and an afternoon tumble in the dollar. Gold for December delivery is up 2.34% to $1364 an ounce. Gold stocks are up even more. Jubak's Picks portfolio members Goldcorp (GG) and Yamana Gold (AUY), for example, were up 5.94% and 5.55%, respectively, as of 2:45 PM New York time.

But the medium-term trends make me cautious here. The second quarter numbers from the World Gold Council, out yesterday, show a multi-year high in demand from the jewelry sector and record demand for gold bars and coins. But big outflows from gold ETFs and slowing demand from central banks more than balanced that out. Gold demand fell 12% in the quarter of a four-year low.

Of course, that's backwards looking. The one piece of data that makes me especially cautious looking forward is that a 6% year-over-year drop in gold supply in the quarter, which helped support gold prices, was almost totally due to a reduction in recycling, as individuals held onto gold jewelry rather than selling it because of low prices. Mine output increased by 4% in the quarter and supply from recycling fell 21% to 308.3 tons, the lowest since the third quarter of 2009. If gold supply from recycling picks up (or doesn't fall as much), that will remove some support for the price of gold, and if it picks up enough, it could lead to another round of production cuts from gold miners.

Top 10 Low Price Stocks To Own Right Now: IG GROUP HLDGS ORD GBP0(IGG.L)

IG Group Holdings plc operates as a financial spread betting company worldwide. The company offers financial spread bets and contracts for difference on forex, stock indices, shares, commodities, binaries, options, interest rates, and other financial markets; fixed odd bets on financial markets; and margined forex and binary options. It is also involved in spread bets and fixed odds bets on sporting and other events, as well as operates a regulated futures and options exchange. In addition, the company engages in the operation of an online casino; margin trading and futures brokerage; and software development. It offers its products and services primarily to retail clients, market professionals, and corporate entities. The company was founded in 1974 and is headquartered in London, the United Kingdom.

Top 10 Low Price Stocks To Own Right Now: Ashburton Minerals Ltd(ATN.AX)

Ashburton Minerals Limited engages in the exploration and evaluation of gold, copper, and base metal projects in Australia and Indonesia. The company primarily focuses on the Obi Gold project, which is located on the island of Obi, south of Halmahera in eastern Indonesia. It also holds interests in the Mt Webb copper project in Western Australia; the Yea gold project in Victoria; and the Spring Valley zinc-copper-lead project in New South Wales. The company is based in West Leederville, Australia.

Top 10 Oil Stocks To Invest In Right Now: 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 Low Price Stocks To Own Right Now: Swift Transportation Company(SWFT)

Swift Transportation Company, through its subsidiary, Swift Transportation Co., LLC, operates as a multi-faceted transportation services company and truckload carrier in North America. The company offers its truckload services through dry van, temperature-controlled, flatbed, and specialized trailers; and rail intermodal services. It also provides freight brokerage and logistics management services to other trucking companies, as well as leases tractors and offers repair services. As of December 31, 2011, the company operated a tractor fleet of approximately 15,900 units, including 11,900 tractors driven by company drivers and 4,000 owner-operator tractors; 50,600 trailers; and 6,200 intermodal containers in the United States and Mexico. It serves various industries, such as retail, discount retail, consumer products, food and beverage, manufacturing, and transportation and logistics industries. The company, formerly known Swift Holdings Corp., and was founded in 1966 and is headquartered in Phoenix, Arizona.

Advisors' Opinion:

• [By Sean Williams]

  Swift Transportation (NYSE: SWFT  ) , for example, delivered a 4% increase in revenue this past quarter in spite of having fewer trucks in service. The company was able to realize better utilization of its existing fleet and actually saw fuel prices fall from the previous year. The results were even more robust for Knight Transportation (NYSE: KNX  ) , whose shareholders saw revenue rise by 7% as the company grew from the year-ago quarter for the 14th straight time and delivered growth from each of its business segments.

• [By Seth Jayson]

  Swift Transportation (NYSE: SWFT  ) reported earnings on July 24. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended June 30 (Q2), Swift Transportation met expectations on revenues and beat expectations on earnings per share.

• [By Sean Williams]

  For this week's round of "Better Know a Stock," I'm going to take a closer look at Swift Transportation (NYSE: SWFT  ) .

  What Swift Transportation does
  Swift is a transportation services trucking and intermodal company in North America. The company primarily transports discounted consumer goods, perishable and non-perishable foods, and manufactured goods. As of the end of 2012 Swift operated 15,300 tractors, 52,800 trailers, and had 8,700 intermodal containers.

• [By Ben Levisohn]

  Shares of Hub have dropped 5.1% to $35.41, but the plunge doesn’t seem to be weighing on other logistic companies. CH Robinson Worldwide (CHRW), for instance, has gained 1.1% to $58.64, JB Hunt Transport Services (JBHT) has risen 1.1% to $71.61, Swift Transportation (SWFT) has advanced 0.9% to $19.56 and Ryder System (R) is up 3.1% to $59.23.

Top 10 Low Price Stocks To Own Right Now: City National Corporation (CYN)

City National Corporation operates as the bank holding company for City National Bank that provides various banking, investing, and trust services to small to mid-sized businesses, entrepreneurs, professionals, and affluent individuals. Its deposit products include demand and interest checking deposits, savings deposits, and money market accounts. The company�s loan portfolio comprises commercial loans, including lease financing; residential mortgage loans; commercial real estate mortgages; real estate construction loans; equity lines of credit; and installment loans. It also offers cash management, international banking, equipment financing, and other products and services. In addition, the company provides investment management, advisory, and brokerage services, including portfolio management, securities trading, and asset management; personal and business trust and investment services comprising employee benefit trust services, and 401(k) and defined benefit plans; and estate and financial planning, and custodial services. Further, it offers various asset classes and investment styles, including fixed-income instruments, mutual funds, domestic and international equities, and alternative investments, such as hedge funds. City National Corporation provides its services through 79 offices, including 16 full-service regional centers in Southern California; the San Francisco Bay area; Nevada; New York City; Nashville, Tennessee; and Atlanta, Georgia. The company was founded in 1953 and is headquartered in Los Angeles, California.

Top 10 Low Price Stocks To Own Right Now: COMS PLC ORD GBP0.001(COMS.L)

Coms plc engages in the development and commercialization of Internet telephony services, and supply and distribution of associated equipment to small and medium sized businesses in the United Kingdom. The company?s Internet telephony enables telephone calls to be transmitted as data over the Internet. It offers hosted VoIP, voice optimized broadband for business, PSTN CPS business telephone, audio and video conferencing, inbound numbers, number porting, and enterprise VoIP services. The company?s Internet telephony services related equipment comprises Internet telephony handsets, VOIP gateways, video phones, and integration consulting and SIP trunks. Coms plc was founded in 2000 and is based in London, the United Kingdom.

Top 10 Low Price Stocks To Own Right Now: Amadeus Energy Ltd(AMU.AX)

Amadeus Energy Limited, together with its subsidiaries, engages in the exploration, development, management, and operation of oil and gas producing properties in Texas, Oklahoma, and Louisiana, the United States. As of July 1, 2011, the company had proven, probable, and possible oil and gas reserves of 8.3 million barrels of oil equivalent. Amadeus Energy Limited was founded in 1996 and is headquartered in Perth, Australia.

Top 10 Low Price Stocks To Own Right Now: TAL International Group Inc.(TAL)

TAL International Group, Inc. engages in the lease of intermodal containers and chassis. It operates in two segments, Equipment Leasing and Equipment Trading. The Equipment Leasing segment involves in the acquisition, lease, re-lease, and sale of various intermodal transportation equipment, such as dry freight containers, which are used for general cargo, including manufactured component parts, consumer staples, electronics, and apparel; refrigerated containers that are used for perishable items, such as fresh and frozen foods; and special containers, which are used for heavy and oversized cargo, such as marble slabs, building products, and machinery. It also leases chassis, which are used for the transportation of containers and tank containers that are used to transport bulk liquid products, such as chemicals, as well as finances port equipment, which includes container cranes, reach stackers, and other related equipment. The Equipment Trading segment purchases container s from shipping line customers and other sellers of containers, and resells these containers to container traders and users of containers for storage or one-way shipment. As of December 31, 2009, it had a fleet of 701,946 containers and chassis, including 31,137 containers under management for third parties, representing 1,139,523 twenty-foot equivalent units (TEU). The company was founded in 1963 and is headquartered in Purchase, New York.

Advisors' Opinion:

• [By ABN]

  TAL International Group (TAL) is one of the world's largest lessors of intermodal freight containers for the shipping business with 17 offices in 11 countries and approximately 230 third-party container depot facilities in 40 countries. TAL's fleet consists of approximately 1,238,000 containers and 2,031,000 twenty-foot equivalent units (TEU).

• [By Seth Jayson]

  Margins matter. The more TAL International Group (NYSE: TAL  ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong TAL International Group's competitive position could be.

• [By Brian Pacampara]

  Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, freight container lessor TAL International (NYSE: TAL  ) has earned a coveted five-star ranking.

Top 10 Low Price Stocks To Own Right Now: The Spectranetics Corporation (SPNC)

The Spectranetics Corporation designs, manufactures, and markets single use medical devices used in minimally invasive surgical procedures within the cardiovascular system in conjunction with its proprietary excimer laser system, the CVX-300. The company?s excimer laser technology is used to ablate multiple lesion morphology morphologies, such as plaque, moderate calcium, and thrombus. It offers four primary product categories for the Vascular Intervention product line, including peripheral atherectomy, coronary atherectomy, thrombus management, and crossing solutions. The peripheral atherectomy product line consists of a selection of proprietary laser catheters that are indicated for the treatment of infrainguinal (leg) stenoses and occlusions; and the coronary atherectomy product line includes a selection of proprietary laser catheters to be used in various types of coronary artery diseases comprising occluded saphenous vein bypass grafts, ostial lesions, long lesions, m oderately calcified stenoses, total occlusions traversable by guidewire, lesions, and restenosis. The thrombus management product line consists of three thrombus removal devices intended to remove fresh, soft thrombi, and emboli from vessels in the arterial system, as well as to address thrombotic occlusions in dialysis grafts and fistulae; and the crossing solutions product line support guidewires or other devices in facilitating vascular access in the arterial system to enable various types of interventions. The company?s lead management product line comprises excimer laser sheaths, non-laser sheaths, and cardiac lead management accessories for the removal of pacemaker and defibrillator cardiac leads. It sells its products in the United States, Canada, Europe, the Middle East, the Asia Pacific, Latin America, and Puerto Rico. The company has a strategic alliance with Kensey Nash Corporation. The Spectranetics Corporation was founded in 1984 and is based in Colorado Springs , Colorado.

Top 10 Low Price Stocks To Own Right Now: Enerji Ltd(ERJ.AX)

Enerji Limited, together with its subsidiaries, engages in marketing energy recovery and clean energy generation solutions in Australia. It offers Opcon Powerbox cogeneration technology that transforms waste heat from power generation and industrial processes into electricity. The company is based in West Perth, Australia.