The Nexus 5 Is Synaptics' Calling Card to the Mobile Industry

The Google (NASDAQ: GOOG  ) -branded, LG-manufactured Nexus 5 is the first high-definition smartphone to use Synaptics'  (NASDAQ: SYNA  ) ClearPad 3350 In-cell touchscreen technology. This new technology equips the Nexus 5 with a single-chip touch controller integrated into the display. The product offers increased touchscreen sensitivity with a 10-finger multi-touch display and 120 Hz refresh rate.

The much-anticipated Nexus 5 has been deemed Google's latest flagship product. The smartphone was launched with the Kit Kat Android operating system, named after the popular Kit Kat candy bar in a unique co-branding partnership with Nestle. The Nexus 5 is the first smartphone to use the new Kit Kat Android OS version 4.4.

The Nexus 5 has benefited from Google's recent acquisition of Motorola by using voice-activated search functionality similar to the technology found in Motorola's MotoX. The Nexus 5 also offers LTE connectivity technology, which allows the device to meet the demand for high-bandwidth and low-latency wireless data service.

Synaptics shows outstanding growth
The ClearPad 3350 technology used in the Nexus 5 features Synaptics' patent-pending In-Cell technology. This new technology allows touchscreen functionality to be present inside of the LCD display, which negates the need for an additional layer of sensors. The benefit is that it allows the mobile device to be thinner, lighter, and more responsive.

Synaptics' future growth depends on acquiring new partnerships within mobile industry. Synaptics' Keving Barber, senior vice president and general manager of the Smart Display Division, said:

This latest design win with Google further underscores Synaptics's growing leadership in the mobile market and our commitment to forging strong partnerships across the mobile ecosystem to deliver groundbreaking, marketleading touchscreen technologies.

As an investor, Synaptics shows outstanding growth. In the first quarter of 2014, the company reported revenue of $222.6 million, which is an amazing 75% increase over $127 million for the same quarter last year. Synaptics reported that 73% of revenue reported was due to mobile product sales, which was up 152% year-over-year.

Synaptics expects to continue exceptional revenue growth in the second quarter of 2014. Kathy Bayless, CFO, said:

Considering our backlog of approximately $117.0 million entering the typically front-end loaded December quarter, customer forecasts, and the resulting expected product mix, we anticipate revenue (exclusive of the impending closure of the acquisition of Validity) to be in the range of $192.0 million to $208.0 million for the second quarter, an increase of 34% to 45% on a year-over-year basis.

Investors should monitor how consumers react to the Nexus 5 as the first In-Cell ClearPad 3350 HD smartphone. A warm reception by Android enthusiasts will likely spark interest in Synaptics' ClearPad 3350 technology by other mobile device manufacturers. Look for Synaptics to increase revenue through new client sales in the form of touchscreen technology.

The Synaptics ClearPad 7300 powers the 7-inch Kindle
Back in October, Amazon (NASDAQ: AMZN  ) selected the ClearPad 7300 to power the touchscreen of the third-generation of 7-inch Kindle Fire HD and the 7-inch Kindle Fire HDX. The ClearPad 7300 gives the Kindle 10-finger touch support and consumes less power than traditional touchscreens. Synaptics's Brian Roberts, senior director of large touchscreen solutions, said:

The Amazon Kindle brand has become ubiquitous among on-the-go consumers, and we believe this next generation of tablets will offer the high-quality touch experiences that Kindle Fire users expect.

With the ClearPad 7300 technology, Amazon is capable of producing thinner and lighter tablets. This will help Amazon stay competitive in a growing tablet market that emphasizes portability, which is important to today's tablet buyers.

As an investor, monitor how consumers react to the new generation of 7-inch Kindle Fire HD and the Kindle Fire HDX tablets.  A positive response from Kindle users could translate into more tablet business for Synaptics.

The bottom line
Synaptics delivered a responsive HD touchscreen for the Google Nexus 5 smartphone. The Nexus 5 will likely be Synaptics' calling card for future business in the mobile industry. To stay relevant, mobile device manufacturers will need to incorporate In-Cell technology to produce lighter, thinner, more responsive HD devices. Synaptics will be ready to fill that need with the In-Cell ClearPad 3350 touchscreen technology.

As an investor, Synaptics currently offers amazing growth potential. Synaptics is likely to expand revenue through new business clients interested in touchscreen technologies. Keep an eye out for new manufacturers using the In-Cell ClearPad 3350 touchscreen technology on future mobile devices.

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Time Is Running Out on Energy-Efficient Home Improvement Tax Credits

Can I still get a tax credit for home improvements?

SEE ALSO: Is It Tax Deductible?

Yes, but most of them are about to expire (again). Last year, Congress extended the tax credit for many energy-efficient home improvements through 2013. You can receive up to $500 in total tax credits for eligible home improvements you've made since 2006. If you haven't already claimed a credit of $500 or more for eligible home improvements, then you may be able to take the break before the end of the year. The improvements must be to your principal residence.

The size of the credit depends on the type of improvement. The tax break applies to 10% of the purchase price (not installation costs) of certain insulation materials, energy-efficient windows ($200 limit for windows), external doors and skylights, metal roofs with pigmented coating, and asphalt roofs with cooling granules that meet certain Energy Star requirements.

You can count both materials and labor costs for certain central air conditioners, biomass stoves, electric heat pumps and electric heat pump water heaters that meet specific energy-efficient guidelines -- up to a maximum of $300 each. You can count up to $150 for an eligible natural gas, propane or oil furnace or hot water boiler.

The items must meet specific energy-efficient requirements to qualify. See the U.S. Environmental Protection Agency's tax breaks site, the Alliance to Save Energy tax credit page and the Tax Incentives Assistance Project for more information. Keep your receipts and the manufacturer's certification of eligibility for your records.

Some alternative-energy improvements qualify for larger tax credits with a later deadline. You can take a credit worth 30% of the cost of buying and installing certain alternative-energy equipment, such as geothermal heat pumps, solar water heaters, solar panels, fuel cells and small wind-energy systems. You must make these improvements by December 31, 2016, and they aren't subject to the $500 limit. See the Energy Star tax credit Web site for details on these credits. You can claim these credits by filing IRS Form 5695, "Residential Energy Credits," which also includes more details about these credits.

If you don't qualify for the federal incentives, see if you can get any state tax breaks for energy-efficient home improvements. For links to information about the programs in each state, see the American Council for an Energy-Efficient Economy site. For a list of several state and utility programs, see the Tax Incentives Assistance Project.

Got a question? Ask Kim at askkim@kiplinger.com.

The Investment Perils of Latin Populism

Argentina has taken a hard-left path in recent years that worries investors. As a result of poor economic policies implemented by President Cristina Fernández de Kirchner and her predecessor and husband, President Nestor Kirchner, the country faces several economic challenges.

Over the past decade, the country’s foreign exchange reserves have been dwindling, falling from a peak of about USD52 billion to around USD38 billion today.

Thanks to ineffective “populist” initiatives designed to garner votes, the Argentine government has been forced to dip into the country’s reserves to pay credits and fund infrastructure projects because the country has largely been frozen out of international lending markets.

At the same time, Argentina’s trade surplus has been narrowing as fewer and fewer trade partners are willing to do business with the country and the global economy enters a seasonally slack time of year.

As a result, unpopular foreign-currency restrictions have been in place for nearly two years, preventing Argentines from buying dollars as the government doles out only small amounts for tourism and subjecting businesses to significant delays in purchasing equipment and materials abroad. That’s forced many Argentines to purchase US dollars on the black market, which can carry a better than 60 percent premium.

The country’s inflation rate has also skyrocketed over the past decade, up from about 13 percent in 2003 to about 25 percent today, as the central bank uses the printing press to fund the country’s fiscal deficit.

Despite all of the country’s problems, Fernández wasn’t quite ready to hand over the reins of power.

The Argentine constitution limits the country’s chief executive to just two terms in office, barring Kirchner from running for reelection in 2015. But taking a page from the playbook u! sed in Venezuela, Ecuador and Bolivia, Fernández was hoping to secure a constitutional amendment changing that by the end of her term.

But Argentines are tiring of the country’s economic woes.

In elections held this past Sunday, Fernández’s Front for Victory (FFV) party failed to win the two-thirds majority she would need to amend the constitution. Just 32 percent of the votes cast in the Senate elections went to the FFV while the party and its allies won just 33 percent of the Chamber of Deputies votes.

Now that the Argentines have spoken, the country’s presidency is clearly in play. The question is whether the electorate will vote in former cabinet chief Sergio Massa, a self-proclaimed Peronist like Fernández but who recently broke with the government, or some other candidate.

Massa has yet to definitively announce his candidacy for the office, but he is clearly positioning himself for a run. However, with two years to go before Argentines pick their next president, there’s a danger that Massa’s star may fall ahead of the election. That’s particularly true as the Peronists, who have dominated the country’s government for nearly seven decades, become increasingly fractured. That raises the possibility of multiple Peronists running for the office, splitting the vote and allowing an opposition candidate to slip in.

The average Argentine is clearly fed up with the government’s maladministration, paving the way for other candidates to usher in a friendlier business environment. For investors, this possible development would be a signal to invest in the country.

Thanks to high inflation and the government’s seizure of Spanish energy company Repsol’s (Madrid: REP, OTC: REPYY) majority stake in YPF (NYSE: YPF), foreign investment in Argentina has dropped off a cliff. As once booming commodity prices have cooled off in recent years, few foreign companies are willing to bet on doing busines! s in Arge! ntina.

Goldcorp’s (NYSE: GG) troubles getting its Argentina property producing is an excellent case in point, with the company recently deferring work there thanks to soaring costs and permitting difficulties.

If the Argentine economy is to overcome its woes, foreign businesses will once again have to be welcomed with open arms. With nearly two years to go to the elections, it’s premature to make predictions. It’s apparent, though, that the winner will likely take a more reformist path.

Argentina is a stark example of what happens when a “statist” government drags down what has historically been a fairly prosperous people. It’s also an indication as to why, despite all the social and economic reforms that have been unfolding in China, the government in the Middle Kingdom has been resistant to open, free and fair elections.

If so-called populist governments want to remain in power despite failed policies, they should grow the economic pie and let their people have the first taste.

Strategies: Lessen start-up time by buying a bu…

So you want to own your own business.

Notice I didn't say start your own business. The popular idea of going into business usually conjures an image of an entrepreneur or two starting at their kitchen table, growing their small business from the ground up.

COLUMN: Pros, cons of seller financing
COLUMN: Buying biz an option if job's in danger

But you can go into business another way: You can buy an existing business.

Too few entrepreneurs consider the option of buying a business. When you buy on ongoing concern, you're further down from the starting line and you have several other advantages:

1. Existing customer base. This is the No. 1 reason to buy an existing small business.

But you need to make sure these customers will be a source of recurring revenue.

In some types of businesses, a hair salon or a doctor's practice, for instance, customers or patients are likely to try you at least once. But you have to assume they're also asking their friends for recommendations.

With a local business such as a coffee shop, a Laundromat, or a clothing store, unless you drastically change the quality of your merchandise, service or price, customers likely will return because the business has become part of their routine.

Other types of business typically don't get repeat customers, such as wedding planners and event photographers. Buy one of these and you'll still have to look for new customers. So what is the value of buying such a business?

2. Location, location, location. Often the greatest value of a small business is its physical location.

An ice cream parlor or surf shop on a beach boardwalk has a competitive advantage that you may not be able to replicate elsewhere. Or the small business you have your eye on may have a long-term lease in a building that's highly desirable, and perhaps that long-term lease is transferable and cheap.

Sometimes an ice cream shop's secret recipe is reason enough to buy an existing business.(Photo: Smitten Ice Cream)

3. Existing product. The business you are considering buying may have a product you want to sell.

The seller has done the groundwork — created a prototype, taken care of government regulations like trademarks and certification. Maybe the present owners have a great product and you realize its potential.

4. Proof of concept. A company may have done the hard work of proving a new business concept such as creating a following for a mobile app.

Perhaps the company has received some recognition but isn't in a position to build to the potential you know is there. If the product has patent protection, that's another good reason to buy.

5. A great team already in place. Many times companies are acquired for their human resources as much as their products or locations.

Just make sure the great team at the real-estate firm, graphic design business, or tech company will stay after you take over. Technology companies have started to "acqui-hire," buy small tech start-ups, acquire the top-notch talent and dump the technology.

6. Physical assets. A bakery with ovens and equipment or a construction company with trucks and tools may be easier to acquire secondhand than getting the financing to start from scratch.

If the business is selling cheaply, you may get such assets at a bargain. Or the business may not be so great, but it comes with a fleet of vans or a warehouse and you see the potential to do something else with it.

Real-estate developers may buy a company for its land, for example, then close the company and build.

A word about non-compete clauses: If you're buying from someone, you want to make sure they won't go into the same business across the street from you six months lat! er.

They may say they're retiring but get bored playing golf in a few months. Remember, the business was once their baby. They're going to see what you're doing and think it's wrong even if it's working out.

Talk to a lawyer to make sure you have the right non-compete provisions for your state.

Finally, keep in mind that many small-business owners think their business is worth much more than it really is. So bargain hard.

Buying a business may give you a faster start toward fulfilling your dream.

Rhonda Abrams is president of The Planning Shop and publisher of books for entrepreneurs. Her most recent book is Entrepreneurship: A Real-World Approach. Register for Rhonda's free newsletter at PlanningShop.com. Twitter: @RhondaAbrams. Facebook: facebook.com/RhondaAbramsSmallBusiness.Copyright Rhonda Abrams 2013.

Why Apple's Stock Price Will Look So Much Better After September

Apple Inc. (NASDAQ: AAPL) is still one of the most searched and most widely followed stocks in the world. That should be expected when you consider that it dominates much of the consumer electronics spending in the world, and when it also has a market cap larger than every other public company. 24/7 Wall St. wants to alert its readers that Apple stock may start to look better any day now, even if its stock price only stays static or falls marginally.

One thing that most retail investors and traders alike pay close attention to is the 52-week trading range. Apple’s stock may be down under $460 again, but the stock’s weakness is so apparent when you consider that the 52-week trading range is $385.10 to $705.07. Sure, the stock is up 20% from its 52-week lows. It is also down 35% from its 52-week high. That will not be the case for much longer.

Apple’s high of $705.07 is from back on September 21, 2012. That one-year time period will change in one week (Monday to Monday). Starting next Monday, the new adjusted 52-week high will be $695.12, which is only a difference of 1%. What you have to understand is that when things fall from grace they often fall at terminal velocity (or warp speed).

Apple’s 52-week high will be only about $650 by the second week of October 2013. In November, the 52-week high will drop to less than $600. By the start of 2014, Apple’s 52-week high, barring any major recovery rally, could be as low as $513.74. So if Apple is somehow trading static at just under $460 around the end of 2013, then a 52-week range of $385.10 to $513.74 is going to magically sound not so bad.

Investors who are stuck in the stock from $700 or so will feel no better. That being said, investors may be far less skeptical investing in a stock that only has to rise 10% to reach a 52-week high rather than one that would have to rise 53% to hit a new high, as is the case this week.

So, will this drive a boa load of new share buyers toward Apple? It is unlikely that investors will fall for such a simple market perception trick. On the flip-side, what we actually expect to occur is that it will make this stock appear to be less and less unattractive and less weak.

What Apple investors have to worry about currently is that Apple’s stock price has fallen enough since its dud of the most recent iPhone 5 refresh that its stock broke under the 200-day moving average ($465.55) and also under the 50-day moving average ($464.35). Those are both not good. But that is a different matter. We are focusing on the next few weeks rather than a shorter-term trading pattern.

The trick is that Apple has to still manage to grow its revenues and drive its earnings. Companies cannot rest on their laurels, even if it is the great Apple under the former Steve Jobs. Tim Cook still has to lead innovation and still has to keep Apple relevant at a time when the rest of the competitive landscape caught up to the company.

Can Staples Recover After Recent News?

With shares of Staples (NASDAQ:SPLS) trading around $14, is Staples 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

Staples is an office products company that operates in three business segments: North American Stores & Online, North American Commercial, and International Operations. The company serves businesses of all sizes and consumers around the world. Business products and services are essential to consumers and producers for day to day operations. So long as companies and consumers continue to transact and interact, business opportunities will arise. Look for companies like Staples to see rising profits as consumers and businesses continue to grow across the globe.

Staples delivered a earnings and revenues that were short of Wall Street's expectations. The revenue miss is a not a good sign to shareholders who seek high growth out of the company.

T = Technicals on the Stock Chart are Mixed

Staples stock was moving higher in the current year. However, the stock has been heavily sold after a negative earnings release. 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, Staples is trading between its key averages which signal neutral price action in the near-term.

(Source: Thinkorswim)

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

	Implied Volatility (IV)	30-Day IV Percentile	90-Day IV Percentile
Staples Options	32.00%	66%	63%

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
September Options	Steep	Average
October Options	Steep	Average

As of today, there is an average demand from call buyers or sellers and high demand by put buyers or low demand by put sellers, all neutral to bearish over the next two months. To summarize, investors are buying a significant amount of call and put option contracts and are leaning neutral to bearish 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 Decreasing 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 Staples’s stock. What do the last four quarterly earnings and revenue growth (Y-O-Y) figures for Staples look like and more importantly, how did the markets like these numbers?

	2013 Q2	2013 Q1	2012 Q4	2012 Q3
Earnings Growth (Y-O-Y)	-11.11%	-3.70%	-71.05%	-289.36%
Revenue Growth (Y-O-Y)	-3.34%	-3.50%	3.04%	-1.97%
Earnings Reaction	-15.97%*	2.84%	-7.14%	2.57%

Staples has seen decreasing earnings and revenue figures over the last four quarters. From these numbers, the markets have been disappointed with Staples’s recent earnings announcements.

*As of this writing

P = Excellent Relative Performance Versus Peers and Sector

How has Staples stock done relative to its peers, Office Depot (NYSE:ODP), OfficeMax (NYSE:OMX), United Stationers (NASDAQ:USTR), and sector?

	Staples	Office Depot	OfficeMax	United Stationers	Sector
Year-to-Date Return	27.63%	22.26%	5.53%	34.66%	18.43%

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

Conclusion

Staples provides essential business and consumer products to people operating in a large number of countries and industries. The company recently reported earnings that have not pleased investors. The stock is currently selling-off after its recent news. Over the last four quarters, earnings and revenues have been decreasing which has left investors in the company disappointed. Relative to its peers and sector, Staples has been a year-to-date performance leader. WAIT AND SEE what Staples does this coming quarter.

Today's Best and Worst DJIA Stocks

Following a mixed pair of economic reports, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up 0.49% to 15,300 points as of 1:25 p.m. EDT. The S&P 500 (SNPINDEX: ^GSPC  ) is up 0.72% to 1,652.

Here are today's U.S. economic reports:

Report

Period

Result

Previous

NFIB small-business optimism index	June	93.5	94.4
Job openings	May	3.8 million	3.8 million

The key report here is the National Federation of Independent Business' small-business optimism index, which fell by 0.9 points to 93.5. Chief economist Bill Dunkelberg wrote a downbeat note, saying: "After two months of incremental but solid gains, the Index gave up in June. This appears par for the course, given that there is no reason for small employers to be more optimistic and lots of things to worry about." However, it was not all bad news for the economy. The data showed that while business optimism dropped, a larger net percentage of businesses expect to increase employment going forward -- a positive sign for the employment situation in the U.S., where unemployment still sits at 7.6%.

Source: NFIB.

Small businesses have been hit hard since the downturn, with far less access to capital than large businesses as banks tighten lending standards. Small businesses are also far more challenged than large ones when it comes to complying with the ever-increasing number of government regulations. For the time being, small-business optimism is likely to stay depressed as conditions for small business remain tough.

Source: NFIB.

IBM (NYSE: IBM  ) is today's worst Dow stock, down 2%, single-handedly holding the Dow back. I've written before why I'm not a fan of how the Dow is structured. Due to the simplistic nature of the DJIA, its weightings are based solely on stock prices, and IBM is the largest component of the DJIA, making up nearly 10% of the index -- this, despite the fact that IBM is by no means the largest company in the index at just half the size of ExxonMobil.

IBM is down today after a Goldman Sachs analyst downgraded the stock from "buy" to "neutral" and lowered its price target from $220 to $200. The analyst wrote, "We believe IBM's long-term secular prospects remain sound, but the company appears to be going through a challenging period that may limit operational earnings upside and produce more quarterly volatility than investors have been accustomed to." While at first this may appear to be an analyst focusing too much on the short term, he also lowered his earnings expectations for the company for the next three years. At 13 times earnings, IBM could be a sound long-term buy if you can handle the volatility in earnings. Fool analyst Andrew Tonner took a look at IBM last month, and you can hear his take on whether IBM is a buy here.

Today's Dow leader is Caterpillar (NYSE: CAT  ) , up 3% on no real news. Caterpillar is on the five most shorted stocks on the Dow with 3% of its shares outstanding sold short. As the mining industry around the world starts to be challenged by falling commodity prices, Caterpillar's business will not be as robust going forward. It's this worry that Caterpillar will get hurt by the boom-bust cycle of commodities that has investors pricing the shares at just 11 times earnings. That said, some investors still think Caterpillar is worth buying. Fool contributor Daniel Ferry recently laid out three reasons to buy Caterpillar.

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

The Happiest Countries in the World

The residents of Switzerland are the most satisfied with their lives, according to the latest Better Life Index report, released this week by the Organization for Economic Co-operation and Development (OECD). Switzerland has moved up to the top spot, bumping Denmark to fifth. For the third year, the United States failed to make the top 10, while countries like Canada, Mexico and all the Scandinavian nations did.

The Better Life Index rates the 36 OECD countries in 11 areas that aim to cover every aspect of life, including income, education, health, work-life balance and life satisfaction. 24/7 Wall St. reviewed the Better Life Index and ranked the countries based on the life satisfaction measure alone.

Click here to see The Happiest Countries In The World

While each of the other 10 categories of quality of life measured in the study is related to life satisfaction, there are several that clearly play a much bigger role, Conal Smith, section head within the statistics directorate at the OECD, explained in an interview with 24/7 Wall St.

The first, and arguably the most important, is jobs. Of the 10 countries with the highest levels of reported life satisfaction, eight had among the 10 highest employment rate — that is, the percentage of the population that is employed. Of the 10 countries with the lowest reported levels of life satisfaction, six had unemployment rates in excess of 11% in 2012. This includes countries like Greece, Portugal and Italy.

"For life satisfaction, it is pretty clear that unemployment drives the relationship," explained Smith. “Not having a job when you're willing and able to work affects life satisfaction more than anything else."

Not surprisingly, good health appears to affect life satisfaction. In seven of the 10 countries, there was a better-than-average proportion of residents reporting good health. This includes Canada, where 88% of respondents reported being in good or better health, compared to an OECD average of 69%. Life expectancy was also high in most these countries, with Switzerland reporting an average life expectancy of 82.8 years, the highest among the 36 countries measured. Of the 10 countries with the worst life satisfaction, the majority had below-average life expectancy.

Another factor many of the countries on this list have in common is governments that tend to provide ample benefits for residents. Five of these countries, including Sweden, Denmark and Austria, spend more than the United States as a percentage of gross domestic product (GDP) on their residents. Likely as a result, income equality is also very high in the majority of these countries.

Dropping three spots this year, the United States is tied for 14th in life satisfaction. This is in spite of the fact that the it had the highest disposable income of any country measured and a high rate of self-reported good health. Given how well the country does on most measures, it suggests that life satisfaction encompasses more than simply income or even health. Mexico, which had among the lowest scores for many indices, still reported among the highest life satisfaction.

Earlier this week, the OECD released "How's Life?" — a further review of the quality of life data compiled for the Better Life Index. As part of its analysis, the OECD looked at other components affecting the quality of life, including disparities in quality of life and life satisfaction among women, what happened to these countries during the recession, and the treatment of their workforces.

Romina Boarini, head of the well-being and progress section at OECD, said one of the goals of the new report was to identify inequalities among different groups, including women. Boarini explained, "Where the gender disparities are the lowest, you actually observe that the overall well-being is the highest. There seems to be that correlation that where gender disparity is lower and a higher level of overall well-being."

Another component of the new "How's Life?" study was the long-term expectations of residents of these countries. The report measured how optimistic people were about their subjective quality of life in five years from 2012, and compared it to how optimistic they were in 2005. While most of the happiest countries in the world are slightly more pessimistic now than they were in 2005, they are generally much less pessimistic than most of the countries measured by the OECD. In Denmark and the Netherlands, residents are actually more optimistic about their quality of life than they were in 2005.

Based on figures published by the OECD as part of its annual Better Life Index, 24/7 Wall St. reviewed the 3o indices measured for each of the member nations and participating countries. The indices that make up the Better Life Index are comprised of 11 categories: housing, income, jobs, community, education, the environment, civic engagement, health, life satisfaction, safety and work-life balance. Figures used to calculate the index and its components are from different years, and the values for individual nations represent the most current data available. We relied on unemployment rates from the OECD's most-recent Economic Outlook data release, as well as figures covering government outlays and the Gini coefficient, which measures income equality after taxes and transfer payments for each country. In the "How's Life" report, new data included changes in poverty rates between 2007 and 2012, changes in total employment in the 2007-2009 and 2009-2012 periods. Includes also were the proportion of all tertiary degrees awarded to women in 2010 and the differences between men and women in overall life satisfaction for 2012. The OECD also included unemployment insurance gross replacement rates as of 2011.

These are the happiest countries in the world.

Is Towers Watson Making You Any Cash?

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 Towers Watson (NYSE: TW  ) , 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, Towers Watson generated $345.0 million cash while it booked net income of $301.3 million. That means it turned 9.7% of its revenue into FCF. That sounds OK.

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 Towers Watson 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 29.7% of operating cash flow coming from questionable sources, Towers Watson investors should take a closer look at the underlying numbers. Within the questionable cash flow figure plotted in the TTM period above, other operating activities (which can include deferred income taxes, pension charges, and other one-off items) provided the biggest boost, at 17.7% of cash flow from operations. Overall, the biggest drag on FCF came from capital expenditures, which consumed 22.3% of cash from operations.

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 Towers Watson? 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 Towers Watson to My Watchlist.

Top 10 Clean Energy Stocks To Buy For 2014

When it comes to the highly charged biodiesel industry, one company stands above the rest. Way above. Renewable Energy Group (NASDAQ: REGI  ) is not only the leader in terms of pure production capacity, but it also displays plenty of desirables that should be on every investor's radar. What makes the company so great? It is no secret. In particular, REG has focused on three areas to become the top biodiesel stock.

1. Focus on infrastructure
A lot of investors get giddy with excitement when talking about the distribution and logistics network of Clean Energy Fuels (NASDAQ: CLNE  ) . It may produce compressed natural gas for commercial truck fleets, but it has a lot in common with REG. Don't believe me? Take a look at Clean Energy Fuel's distribution network:

Source: Clean Energy Fuels. �

And see how it compares with that of REG:

Source: Renewable Energy Group.

Top 10 Clean Energy Stocks To Buy For 2014: LMI Aerospace Inc.(LMIA)

LMI Aerospace, Inc. provides design engineering services, structural assemblies, kits, and components to the aerospace, defense, and technology markets primarily in the United States. The company operates in two segments, Aerostructures and Engineering Services. The Aerostructures segment fabricates, machines, finishes, integrates, assembles, and kits formed close tolerance aluminum, specialty alloy, and composite components, as well as higher level assemblies. Its aerospace products include wing slats and flapskins; winglet leading edges and related wing modification kits; fuselage and wing skins; helicopter cabin, aft section, and pylon components and assemblies; door surrounds, components, assemblies, and floorbeams; thrust reversers and engine nacelles/cowlings; cockpit window frames and landing light lens assemblies; interior components; structural sheet metal and extruded components; tailcone assemblies; and housings and assemblies. This segment also offers value-add ed services related to the design, production, assembly, and distribution of aerospace components. The Engineering Services segment provides design, engineering, and program management services, such as structural design and analysis, systems design and integration, tool design and fabrication, certification planning support, risk mitigation and producibility trade studies, and the development of program schedules and resource planning. Its services include wing/wingbox, fixed and moveable leading edges/trailing edges, fuselage, empennage, and tailcone design; winglet/wing mod design; nacelle, engine cowl, and thrust reverser design; weight improvement engineering; helicopter fuselage, cockpit, cabin frames, skins, longerons, and beams; aircraft modification engineering; aviation training system; aviation maintenance engineering; manufacturing engineering; and aviation system software engineering. The company was founded in 1948 and is based in St. Charles, Missouri.

Advisors' Opinion:

• [By Sally Jones] % over 12 months, Lockheed Martin Corporation (LMT) has a market cap of $45.06 billion. The current share price is $140.67, and trades with a P/E of 15.00. The dividend yield is 3.30%.

  Lockheed Martin Corporation was formed in 1995 by combining the businesses of Lockheed Corporation and Martin Marietta Corporation. Lockheed Martin operates in four principal business segments: Aeronautics, Electronic Systems, Information Systems & Global Services and Space Systems.

  Guru Action: As of Sept. 30, 2012, Jim Simons bought a new holding of 145,800 shares at an average price of $121.40 for a gain of 15.9%.

  Guru Ray Dalio sold out his LMT after 16 quarters of high gains. In the third quarter of 2013, he sold 10,176 shares at an average price of $121.40 for a gain of 15.9%.

  Numerous gurus traded LMT in third quarter.

  There is recent insider selling.

  Historical share pricing, revenue and net income tracking:

  [ Enlarge Image ]

  B/E Aerospace Inc. (BEAV)

  Up 93% over 12 months, B/E Aerospace Inc. has a market cap of $9.05 billion.

  The current share price is $86.28, and trades with a P/E of 25.60. The company does not pay a dividend.

  B/E Aerospace Inc. is a global manufacturer of aircraft cabin interior products and a distributor of aerospace fasteners and consumables.

  Guru Action: As of Sept. 30, 2012, Guru Ken Fisher is one of four gurus making a new buy. Fisher bought a new holding of 21,800 shares at an average price of $70.20 for a gain of 23%.

  Guru Larry Robbins was one of two gurus selling out in the third quarter. Robbins sold 341,692 shares at an average price of $70.20 for a gain of 22.9%.

  Here�� a lot more guru action and recent insider selling.

  [ Enlarge Image ]

  GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature

Top 10 Clean Energy Stocks To Buy For 2014: Lux Dig Pict Inc(LUXD.OB)

Lux Digital Pictures, Inc. engages in the development, production, marketing, and distribution of digital films. The company intends to market its motion picture product and distribution businesses under various brands, including Lux Digital Pictures, Midnight Movies, New Broadway Cinema, and Short Screams. It also intends to develop its brand Midnight Movies brand as a specialty theatrical distributor that provides multi-market releases for some of its own products and film products acquired from third parties. The company?s Short Screams brand would be an online Web portal that streams and broadcasts independently produced short horror, suspense, and fantasy films; and New Broadway Cinema brand would produce and distribute film adaptations of established theatrical stage productions using its proprietary DigiTheater production process. Lux Digital Pictures, Inc. was founded in 2008 and is based in Los Angeles, California.

5 Best Penny Stocks To Invest In 2014: Honeywell International Inc.(HON)

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Its Aerospace segment provides turbine propulsion engines, auxiliary power units, environmental control and electric power systems, engine systems and accessories, avionic systems, aircraft lighting, inertial sensors, control products, space products and subsystems, and landing products for aircraft manufacturers, airlines, business and general aviation, military, space, and airport operations, as well as offers management and technical, logistics, aircraft wheels and brakes and repair, and overhaul services. The company?s Automation and Control Solutions segment provides environmental and combustion controls, and sensing controls; security and life safety products and services; scanning and mobility products; process automation products and solutions; and building solutions and services for homes, buildings, and industrial facilities. Its Specialty Materials segment prov ides resins and chemicals; hydrofluoric acid; fluorocarbons; fluorine specialties; nuclear services; performance chemicals; chemical processing sealants; fibers and composites; specialty films and additives; imaging and electronic chemicals; semiconductor materials and services; catalysts, adsorbents, and specialties; and renewable fuels and chemicals. It offers these products for refining, petrochemical, automotive, healthcare, agricultural, packaging, refrigeration, appliance, housing, semiconductor, wax, and adhesives segments. This segment also provides process technology and equipment for the petroleum refining, and petrochemical and gas processing industries. The company?s Transportation Systems segment provides charge-air systems; thermal systems; filters, spark plugs, electronic components, and car care products; and brake hard parts and other friction materials for passenger cars and commercial vehicles. The company was founded in 1920 and is headquartered in Morris Township, New Jersey.

Advisors' Opinion:

• [By Ben Levisohn]

  Since the initial drop, shares of United Tech have bounced back a bit. They’re down 0.8% at $106.93 at 12:03 p.m. That drop puts it out of step with other industrial stocks, which have been stronger today. General Electric (GE), for instance, has gained 1.1% to $24.16, Honeywell International (HON) has ticked up 0.2% to $83.19, Esterline (ESL) has risen 0.7% to $80.45 and Northrop Grumman (NOC) is up 0.6% at $95.87.

• [By Katie Spence]

  Major profits ahead
  With a price tag of $52 billion, the KC tanker contract is one of the Pentagon's largest weapons initiatives. Further, some analysts estimate that with future parts and maintenance, the contract worth could climb to $100 billion. This is great news for Boeing, but it's also great news for its subcontractors on the project -- Honeywell International� (NYSE: HON  ) is supplying the auxiliary power unit and cabin pressure control unit, Northrop Grumman (NYSE: NOC  ) is supplying Large Aircraft Infrared Countermeasures, United Technologies' (NYSE: UTX  ) subsidiary Pratt & Whitney is supplying the engines, Rockwell Collins� (NYSE: COL  ) is supplying the integrated display system, and Raytheon�is supplying the digital radar-warning receiver. All in all, this is a major initiative for defense contractors, and good news for Boeing is good news for all.�

• [By Rich Smith]

  The biggest of these contracts, a sizable $179.9 million, one-year award with the potential to swell to $899.5 million if the four "option-year" extensions are exercised, is to be split among 13 separate firms:

  Booz Allen Hamilton (NYSE: BAH  ) CACI (NYSE: CACI  ) Technologies Computer Sciences Corp (NYSE: CSC  ) General Dynamics (NYSE: GD  ) One Source Honeywell (NYSE: HON  ) Technology Solutions Engility Corp. Lockheed Martin Science Applications International Corp. URS Federal Services and four privately held firms.

  Under the awarded indefinite-delivery/indefinite-quantity (IDIQ), cost-plus-fixed-fee, performance-based umbrella contract, all 13 firms will be able to compete to perform task orders for the U.S. Navy, providing "integrated cyber operations services" to Space and Naval Warfare Systems Center Atlantic.

Top 10 Clean Energy Stocks To Buy For 2014: Sino Clean Energy Inc.(SCEI)

Sino Clean Energy Inc., through its subsidiaries, operates as a third party commercial producer and distributor of coal-water slurry fuel (CWSF) in the People?s Republic of China. The company?s CWSF products are primarily used to fuel boilers and furnaces to generate steam and heat for residential and industrial applications. It sells its products directly to various customers, including industrial, commercial, residential, and government organizations. The company is headquartered in Xi?an, China.

Top 10 Clean Energy Stocks To Buy For 2014: ONEOK Partners L.P.(OKS)

ONEOK Partners, L.P. engages in the gathering, processing, storage, and transportation of natural gas in the United States. The company?s Natural Gas Gathering and Processing segment gathers and processes natural gas produced from crude oil and natural gas wells located in the Mid-Continent region; and gathers natural gas in the Williston Basin, which spans portions of Montana and North Dakota, and the Powder River Basin of Wyoming. Its Natural Gas Pipelines segment primarily owns and operates regulated natural gas transmission pipelines, natural gas storage facilities, and natural gas gathering systems for non-processed gas. It also provides interstate natural gas transportation and storage services. This segment?s interstate natural gas pipeline assets transport natural gas through FERC-regulated interstate natural gas pipelines in North Dakota, Minnesota, Wisconsin, Illinois, Indiana, Kentucky, Tennessee, Oklahoma, Texas, and New Mexico. In addition, it transports intra state natural gas through its assets in Oklahoma; and owns underground natural gas storage facilities in Oklahoma, Kansas, and Texas. Its Natural Gas Liquids segment gathers, fractionates, and treats natural gas liquids (NGLs), as well as stores NGL products primarily in Oklahoma, Kansas, and Texas. This segment owns FERC-regulated natural gas liquids gathering and distribution pipelines in Oklahoma, Kansas, Texas, Wyoming, and Colorado; terminal and storage facilities in Missouri, Nebraska, Iowa, and Illinois; and FERC-regulated natural gas liquids distribution and refined petroleum products pipelines in Kansas, Missouri, Nebraska, Iowa, Illinois, and Indiana that connect its Mid-Continent assets with Midwest markets, including Chicago, Illinois. ONEOK Partners GP serves as the general partner of the company. The company was formerly known as Northern Border Partners, L.P. and changed its name to ONEOK Partners, L.P. in May 2006. The company was founded in 1993 and is based in Tulsa, Oklahoma.

Advisors' Opinion:

• [By Lauren Pollock]

  Oneok Partners L.P(OKS). on Tuesday said it planned to invest $650 million to $780 million on Bakken Shale projects in North Dakota, including a new natural-gas processing plant. The spending plan is set to run through the second quarter of 2016. Oneok has already announced $6 billion to $6.4 billion in total investments through 2016.

• [By Chris Hill]

  In honor of Father's Day, Ron and James share the best advice their fathers ever gave them and discuss why they're looking at shares of Amazon.com (NASDAQ: AMZN  ) and ONEOK Partners (NYSE: OKS  ) .

• [By Matt DiLallo]

  Because of this advantage, rail has the potential to stick around and be more than a short-term solution. It's already starting to affect pipeline projects; as late last year ONEOK Partners (NYSE: OKS  ) announced that it was not moving forward with its proposed Bakken Crude Express pipeline project after the company couldn't secure the necessary long-term commitments. It could also mean that some of the proposed projects from the chart above might not need to be built. With ample rail capacity, producers might elect to keep riding the rails.�

• [By Aimee Duffy]

  Midstream companies are having an excellent 2013 so far, but ONEOK Partners (NYSE: OKS  ) has more or less missed out, as shares are down about 1% year to date. The partnership and its general partner ONEOK (NYSE: OKE  ) report earnings on Tuesday, and the results will hopefully shed some light on whether or not things will pick up this year. Here are three things to watch for when ONEOK Partners reports.

Top 10 Clean Energy Stocks To Buy For 2014: NuFarm Ltd(NUF.AX)

Nufarm Limited, together with its subsidiaries, operates as a crop protection company worldwide. The company engages in the manufacture and supply of agricultural chemicals, including turf and ornamental, glyphosate, insecticide, fungicide, and non-glyphosate herbicides. It also operates a seeds business focusing on canola, sorghum, and sunflower seeds, as well as offers seed treatment products. The company supplies its products to farmers to protect crops from damage caused by weeds, pests, and diseases. Nufarm Limited sells its products in 100 countries. The company is headquartered in Laverton, Australia.

Top 10 Clean Energy Stocks To Buy For 2014: Donegal Group Inc. (DGICA)

Donegal Group Inc., an insurance holding company, offers property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. It operates in two segments, Personal Lines of Insurance and Commercial Lines of Insurance. The Personal Lines of Insurance segment offers private passenger automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents, as well as protection against loss from damage to automobiles. This segment also provides homeowners policies, which offer coverage for damage to residences and their contents from fire, lightning, windstorm, and theft; and liability of the insured arising from injury to other persons. The Commercial Lines of Insurance segment offers commercial automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents, and protection against loss from damage to automobiles owned by the insured; commercial multi-peril policies, which offer protection to businesses against various perils, primarily combining liability and physical damage coverages; and workers� compensation policies that offer benefits to employees for injuries sustained during employment. The company markets its insurance products through a network of approximately 2,500 independent insurance agencies. Donegal Group Inc. was founded in 1986 and is headquartered in Marietta, Pennsylvania.

Top 10 Clean Energy Stocks To Buy For 2014: Dynasty Metals I (DMM.TO)

Dynasty Metals & Mining Inc. engages in the acquisition, exploration, and development of mineral properties in Ecuador. The company primarily explores for gold, silver, and copper ores. Its principal properties include the Zaruma gold project comprising 46 unsurveyed concessions that cover 103 square kilometers located in the El Oro Province of southwestern Ecuador; the Jerusalem gold project consisting of 1 concession that covers 225 hectares located in the Zamora Chinchipe Province of southeastern Ecuador; and the Dynasty copper-gold project that comprises 51 concessions covering a total project area of approximately 979.81 square kilometers located in the Loja Province of southern Ecuador. The company is headquartered in Vancouver, Canada.

Top 10 Clean Energy Stocks To Buy For 2014: Merrimack Pharmaceuticals Inc (MACK.W)

Merrimack Pharmaceuticals, Inc., incorporated in 1993, is a biopharmaceutical company discovering, developing and preparing to commercialize medicines paired with companion diagnostics for the treatment of serious diseases, with an initial focus on cancer. The Company�� product candidates include MM-398, MM-121, MM-111, MM-302 and MM-151. As of June 31, 2011, the Company owned approximately 74% interest of Silver Creek.

The Company�� Network biology is an interdisciplinary approach to drug discovery and development that enables the Company to build functional and predictive computational models of biological systems based on quantitative, kinetic, multiplexed biological data. The Company provides its scientists with insights into how the complex molecular interactions that occur within cell signaling pathways, or networks, regulate cell decisions and how dysfunction within these networks leads to disease. The Company applies network biology throughout t he research and development process, including for target identification, lead compound design and optimization, diagnostic discovery, in vitro and in vivo predictive development and the design of clinical trial protocols.

MM-398

MM-398 is a stable nanotherapeutic encapsulation, or enclosed sphere carrying an active drug, of the marketed chemotherapy drug irinotecan. MM-398 achieved its primary efficacy endpoints in Phase 2 clinical trials in pancreatic and gastric cancer. In an open label, single arm Phase 2 clinical trial of MM-398 as a monotherapy in 40 metastatic pancreatic cancer patients who had previously failed treatment with gemcitabine, patients treated with MM-398 achieved median overall survival of 22.4 weeks. Additionally, 20% of the patients in this Phase 2 trial survived for more than one year, and the Company observed a disease control rate, meaning patients exhibited stable disease or partial or complete response to treatment, of 47 .5% at six weeks.

The Company focuses on ini! ti! ating a Phase 3 clinical trial of MM-398 for the treatment of patients with metastatic pancreatic cancer who have previously failed treatment with gemcitabine. The trial is expected to enroll approximately 250 patients and is designed to compare the efficacy of MM-398 as a monotherapy against the combination of the chemotherapy drugs fluorouracil, or 5-FU, and leucovorin. There are multiple ongoing Phase 1 and Phase 2 clinical trials of MM-398. In July 2011, the United States Food and Drug Administration (FDA) granted MM-398 orphan drug designation for the treatment of pancreatic cancer.

MM-121

MM-121 is a fully human monoclonal antibody that targets ErbB3, a cell surface receptor, or protein attached to the cell membrane that mediates communication inside and outside the cell, that the Company�� network biology approach identified as a target in a range of cancers. A monoclonal antibody is a type of protein normally produced by cells of the immun e system that binds to just one epitope, or chemical structure, on a protein or other structure. MM-121 is designed to inhibit cancer growth directly, restore sensitivity to drugs to which a tumor has become resistant and delay the development of resistance of a tumor to other agents. In collaboration with Sanofi, the Company focuses on testing MM-121 in combination with both chemotherapies and other targeted agents across a range of spectrum of solid tumors, including lung, breast and ovarian cancers. The Company partnered MM-121 with Sanofi after it initiated Phase 1 clinical development of the product candidate.

MM-111

MM-111 is a bispecific antibody designed to target cancer cells that are characterized by overexpression of the ErbB2 cell surface receptor, also referred to as HER2. A bispecific antibody is a type of antibody that is able to bind simultaneously to two distinct proteins or epitopes. The Company�� network biology approach identif ied that ligand-induced signaling through the complex ! of Erb! B! 2 (HER2)! and ErbB3 is a promoter of tumor growth and survival than previously appreciated.

MM-302

MM-302 is a nanotherapeutic encapsulation of doxorubicin with attached antibodies that are designed to target MM-302 to cells that over express the ErbB2 (HER2) receptor. The Company is conducting a Phase 1 clinical trial of MM-302 in patients with advanced ErbB2 (HER2) positive breast cancer.

MM-151

MM-151 is an oligoclonal therapeutic consisting of a mixture of three fully human monoclonal antibodies designed to bind to non-overlapping epitopes of the epidermal growth factor receptor (EGFR). EGFR is also known as ErbB1. An oligoclonal therapeutic is a mixture of two or more distinct monoclonal antibodies. The Company has designed MM-151 to block signal amplification that occurs within the ErbB cell signaling network. The Company has submitted an investigational new drug application (IND), to the FDA for MM-151 in July 2011.

Top 10 Clean Energy Stocks To Buy For 2014: Platinum Group Metals Ltd (PLG)

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

• [By Zacks Investment Research]

  Investors hoping for a turnaround in precious metals prices and looking for exposure to precious metals miners could consider Platinum Group Metals (PLG), currently ranked #2 (Buy) by Zacks.

Switzerland lifts 2013 GDP forecast to 1.9%

ZURICH--Switzerland lifted its economic-growth forecast for this year slightly thanks to consumer spending and expectations the world-wide economic recovery will boost demand for its industrial goods.

"Providing the international economy continues on a gradual path of recovery there are good prospects for a strengthening economic upturn in Switzerland over the next two years," the department of economics said in a statement on Thursday.

It maintained its projection for 2014. It expects the average rate of unemployment to edge lower next year.

Gross domestic product will expand 1.9% this year, government agency Seco said. That is up slightly from a previous forecast of 1.8%. It kept its projection for growth in 2014 steady at 2.3% and expects the economy to grow 2.7% in 2015.

The economy grew for a fifth straight quarter in the three months through September as a revival in foreign demand for machinery and industrial goods offset stagnant domestic consumption.

The unemployment rate is likely to average 3.2% this year and then edge down to 3.1% in 2014, Seco said.

The consumer price index is likely to contract by an average 0.2% this year--down from a previous projection of -0.1%. It will gain 0.2% next year compared with a previous forecast of 0.3%.

OppenheimerFunds shakes up leadership team

OppenheimerFunds chief executive officer William Glavin will be stepping down from that role in July, the company announced Tuesday. He will be replaced by chief investment officer Art Steinmetz. Mr. Glavin, who joined OppenheimerFunds in January 2009, will remain chairman.

“Art has been one of the most successful and respected investment managers in the industry for more than 27 years, and I believe it is important that an investor lead this company at this point in its evolution,” Mr. Glavin said in a statement. “We have developed a strategy that will accelerate our growth, and Art and the leadership team are well positioned to lead this change.”

Mr. Steinmetz joined Oppenheimer in 1986, and was named chief investment officer in 2008. He is co-portfolio manager of the $10 billion Oppenheimer International Bond Fund (OIBAX) and the lead manager $7.7 billion Oppenheimer Global Strategic Income Fund (OPSIX).

Mr. Glavin was a co-COO and executive vice president of MassMutual's U.S. insurance group before being named CEO of Oppenheimer in January 2009.

Krishna Memani, chief investment officer of fixed income, has been named Mr. Steinmetz's replacement as chief investment officer.

Kaitlyn Downing, a spokeswoman for OppenheimerFunds, could not be reached for comment.

OppenheimerFunds, the ninth largest mutual fund company, has $15.4 billion of net inflows through the end of November, fifth most among mutual fund companies.

My Bullish Case for Equities Heading Into 2014

By Matthew Pierce

Another month brought another new stock market high. In November, the bull market in US equities continued as the S&P 500 hit new three new all-time highs during the month and closed above 1800 for the first time on November 22.

It has been a great year for the US equity investor, and in this time of Thanksgiving and holiday celebration, all should rightfully celebrate. Wall Street's professionals should be happy with their year-end bonuses, and those investors who were willing to take big risks have been handsomely rewarded.

But I'm not sure that Main Street is paying attention.  Headlines reflect an undercurrent of worry about the economy, jobs, growth of income, government debt and bad fiscal management. Main Street is not listening to Wall Street talk about record corporate profits, earnings multiples that are not very expensive, modest inflation and improving economic trends.

Main Street is focused on jobs, corporate greed, and income disparity. Wall Street and Main Street are watching different channels. The trouble with this picture is that Main Street remembers the losses of 2008 too well, is still scarred by the Great Recession, and knows that good jobs have not magically appeared. Therefore, many on Main Street were not able or willing to participate in the great American equity rally.

But that may be changing, according to a Wall Street Journal article (“Stocks Regain Broad Appeal”, Nov 10, 2013). Individual investors are returning to equities.  Whether this is good or bad news for equities remains to be seen.

Many professionals believe that positive individual investor sentiment is a negative indicator for equity market growth. But other professionals take the view that the equity market is still relatively undervalued, even at this stage in a bull market.

So far, we have seen little to indicate that equities will not keep on trucking along. Main Street investors should have some of their savings in the global equity market, preferably in well-diversified risk-managed portfolios.

Global equities

Stock Indices	Nov 2013	Oct 2013	YTD 2013
Global, All Country (MSCI ACWI)	1.4%	4.0%	20.8%
US Large Cap (S&P 500)	3.1%	4.6%	29.1%
US Small Cap (Russell 2000)	4.0%	2.5%	36.1%
Non-US Developed (MSCI EAFE)	0.8%	3.4%	20.1%
Non-US Emerging (MSCI EMG)	-1.5%	4.9%	-1.2%
Gold Bullion	-5.4%	-0.2%	-24.7%
All returns through November 29, 2013

U.S. equity markets posted strong results in the 4th quarter to date with all major indices achieving measurable gains. Non-US developed markets also performed well, as European economic growth translated into stock market gains. Emerging markets lost ground in November after strong October and September returns.

Small cap stocks outperformed large cap stocks. Value and growth returned, although small cap growth performed slightly below small cap value. Gold bullion continued its year-long downward spiral losing more than 5% of value in November.

Domestic Fixed Income

Barclays Bond Indices	Nov 2013	Oct 2013	YTD 2013
US Aggregate	-0.4%	0.8%	-1.5%
US Treasury 7-10 yr	-0.9%	0.9%	-4.2%
US Treasury TIPS	-1.1%	0.6%	-7.2%
US Gov't / Credit	-0.3%	0.9%	-1.7%

 

10 Year Treasury Rates
Dec 31, 2012	1.78%
March 28, 2013	1.87%
June 28, 2013	2.52%
September 30, 2013	2.64%
November 29, 2013	2.75%
50 year average	6.66%
10 year average	3.52%

The US Bond market dropped marginally in November after rising somewhat in October. The 10-year Treasury interest rate edged upward to 2.8% at the end of November from 2.6% in October and September.

The continuing dominant driver of interest rate expectations remains the Fed's commitment to monetary stimulation through quantitative easing (“QE”), despite signs of an improving economy and a drop in joblessness in November to 7.0%.

Conditions are now sufficiently positive that the Fed could justify tapering QE at any of its next few meetings. Our suspicion is that there will be no change from current policy at least until Janet Yellen becomes chair of the Fed in January. Main Street concerns that tapering QE will halt the fragile jobs recovery will also likely keep the Fed from changing current policy in the very near term.

Summary

We remain positive on equity markets in general, and particularly relative to bonds, because of seasonal factors, improving economic news, record corporate profits and moderate earnings multiples.

But we also recognize that the US equity market is one exogenous shock away from a market correction and that at least one likely shock will occur when whispers of Fed tapering begin again, probably in early spring. That correction will cause Main Street great anxiety and give Wall Street another reason to buy on the dip. Until that occurs, we remain overweight equities. Keep on truckin'.

DISCLAIMER: The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.  Past performance is no guarantee of future results.

The post My bullish case for equities heading into 2014 appeared first on Smarter Investing

Covestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures. For information about Covestor and its services, go to http://covestor.com or contact Covestor Client Services at (866) 825-3005, x703.

Matthew Pierce

Island Light Capital Corporation is an investment advisory and consulting firm that specializes in the development of optimally diversified investment…

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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Ask Matt: What’s the fastest growing tech stock?

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: What's been the fastest growing technology stock?

A: Tech investors like one thing: Growth. That's a bit of an oversimplification, but not by much.

Tech investors are focused on finding the companies seeing demand for their products and services increase quarter over quarter and year over year. Investors figure that even if technology companies are losing money, as long as they are growing, then profits will follow.

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Interestingly, though, tech investors often fall into the trap of thinking the same tech stocks they read about all the time are the ones that are putting up the big growth. That's often not the case.

Among the tech stocks in the broad Standard & Poor's 1500 index, most of those with the strongest growth are some companies many investors aren't familiar with. For instance, the tech company with the strongest growth in earnings before interest, taxes, amortization and depreciation the past two years, 96% compounded annually, is Blucora. The company provides search technology to Web sites and also tax preparation services.

After Blucora, Cirrus Logic is the company with the fastest compound average annual rate of growth the past two years, 76%. The company makes a variety of computer chips and integrated circuits. That's not to say some popular stocks aren't growing quickly. 3D printing darling, 3D Systems, has put up the fourth fastest rate of cash flow growth over the past two years at 62%.

Best Undervalued Stocks To Buy Right Now

CAPS, a stock-tracking game developed by The Motley Fool, is a great way to keep track of long-term picks even when they fall off of your watchlist.�In the following video, Fool.com contributor and active CAPS community member, Maxx Chatsko, explains why he hasn't given up on his CAPS pick of�Domtar� (NYSE: UFS  ) . He believes this company's progress has not been adequately rewarded by the market in the last six months, but feels as confident as ever that it presents a great opportunity for investors hunting for a great dividend or an undervalued and under-the-radar growth opportunity. You can follow all of his CAPS picks by clicking on the link in the disclosure below.�

If you're on the lookout for high-yielding stocks and Domtar doesn't quite fit the bill, The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost!�Just click here.

Best Undervalued Stocks To Buy Right Now: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.

Advisors' Opinion:

• [By Isac Simon]

  4. Ambitious plans for subsea systems
  Last November, Cameron and Schlumberger (NYSE: SLB  ) floated a joint venture to manufacture and develop products, systems and services for the subsea oil and gas market. While Cameron retains a 60% ownership, Schlumberger will contribute with its flow assurance, power and control systems. Clearly, these companies anticipated a solid growth in subsea systems market that is currently National Oilwell Varco's fiefdom.

• [By Tyler Crowe]

  Many of the national oil companies in the Middle East do not have the experience to do EOR or production optimization on their own. This is where oil services specialists come into play. Both Core Laboratories and Schlumberger (NYSE: SLB  ) saw sizable upticks in revenue from the Middle East region. If Middle Eastern oil production trends were to continue, it would not be a stretch to see these two companies as well as other oil services grow their Middle Eastern business substantially over the next several years.

• [By Teresa Rivas]

  As for companies with the most upside, Marathon Petroleum (MPC) tops the list, with 63.6%, followed by Autodesk (ADSK), Ventas (VTR), salesforce.com (CRM) and American Tower (AMT). Outside the top five, the list also includes big names like Schlumberger (SLB), Halliburton (HAL), Expedia (EXPE) and General Motors (GM).

• [By Dan Caplinger]

  Another issue that Varco has to face is the specter of increasing competition. Cameron International (NYSE: CAM  ) has arisen as a big player in the drilling and production systems space, with a particular emphasis on subsea applications like blowout preventers. With Cameron sporting a recent partnership with Schlumberger (NYSE: SLB  ) , the combination will have both the expertise and the financial resources to challenge Varco in that niche. More broadly, up-and-coming Forum Energy (NYSE: FET  ) has sought to emulate Varco's broad-based services menu, offering remotely operated vehicles for deepwater inspection and construction as well as pipe and cementing materials and a range of subsea systems and equipment. Forum has posted solid results in its brief history, taking steps to continue its fast growth trajectory.

Best Undervalued Stocks To Buy Right Now: Tupperware Corporation(TUP)

Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.

Advisors' Opinion:

• [By Oliver Pursche]

  European large-cap pharmaceuticals like Novartis (NVS) �and Bristol Meyers Squibb (BMY) �count amongst some of our favorite stocks right now, as do U.S. multinationals that are growing revenue and margins in Asia ��Tupperware (TUP) �is a shining example. Stay away from utilities and energy stocks, as they are likely to be the laggards over the next year.

• [By Monica Gerson]

  Tupperware Brands (NYSE: TUP) is expected to report its Q3 earnings at $1.03 per share on revenue of $623.34 million.

  Varian Medical Systems (NYSE: VAR) is projected to post its Q4 earnings at $1.12 per share on revenue of $779.02 million.

• [By Eric Volkman]

  Tupperware Brands (NYSE: TUP  ) is reaching into its corporate bowl for a fresh payout to shareholders. The company has declared a quarterly dividend of $0.62 per share. This will be paid on July 8 to stockholders of record as of June 19. That amount matches the firm's previous distribution, which was paid in early April. Prior to that, Tupperware Brands was rather less generous, handing out $0.36 per share.

Top 5 Warren Buffett Stocks To Own Right Now: Caterpillar Inc.(CAT)

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.

Advisors' Opinion:

• [By E. Michael Greenberg]

  Blue Sphere is a small company with a big future and that future starts now. Over the last two weeks Blue Sphere Corp. (OTCQB: BLSP) has announced commitments for over $25 million dollars of financing for their Charlotte, North Carolina based 5.2 Mega Watt (Mw) anaerobic digestion facility. Blue Sphere, in two press releases, announced a commitment for $17.785 million in debt financing from Caterpillar Financial Services Corporation, the financial services arm of Caterpillar Inc. (NYSE: CAT) and $7.5 million in an equity commitment from a leading environmental finance fund.

Best Undervalued Stocks To Buy Right Now: Dollar Tree Inc.(DLTR)

Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.

Advisors' Opinion:

• [By Ben Eisen]

  Perpetually struggling department store J.C. Penney Co. (JCP) �said it expects a sales boost this holiday season as it returns to a promotional strategy. But for the most part, retailers including Dollar Tree Inc. (DLTR) �, GameStop Corp. (GME) � and Abercrombie & Fitch Co. (ANF) � gave dour outlooks in their earnings reports.

• [By John Maxfield]

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